Financial Times Europe - 10 09 2020

www.ft.com/subscribetodayemail: [email protected]: +44 20 7775 6000Fax: +44 20 7873 3428

THURSDAY 10 SEPTEMBER 2020 EUROPE

World Markets

STOCK MARKETS

Sep 9 prev %chg

S&P 500 3402.47 3331.84 2.12

Nasdaq Composite 11129.51 10847.69 2.60

Dow Jones Ind 28018.21 27500.89 1.88

FTSEurofirst 300 1434.31 1410.25 1.71

Euro Stoxx 50 3331.31 3267.37 1.96

FTSE 100 6012.84 5930.30 1.39

FTSE All-Share 3358.15 3322.13 1.08

CAC 40 5042.98 4973.52 1.40

Xetra Dax 13237.21 12968.33 2.07

Nikkei 23032.54 23274.13 -1.04

Hang Seng 24468.93 24624.34 -0.63

MSCI World $ 2354.41 2408.05 -2.23

MSCI EM $ 1087.51 1094.56 -0.64

MSCI ACWI $ 562.81 574.49 -2.03

CURRENCIES

Sep 9 prev

$ per € 1.181 1.179

$ per £ 1.300 1.303

£ per € 0.908 0.905

¥ per $ 106.235 105.945

¥ per £ 138.100 137.994

SFr per € 1.079 1.081

€ per $ 0.847 0.848

Sep 9 prev

£ per $ 0.769 0.768

€ per £ 1.101 1.105

¥ per € 125.453 124.935

£ index 77.673 78.403

SFr per £ 1.188 1.194

COMMODITIES

Sep 9 prev %chg

Oil WTI $ 38.21 36.76 3.94

Oil Brent $ 40.95 39.78 2.94

Gold $ 1910.95 1928.45 -0.91

INTEREST RATES

price yield chg

US Gov 10 yr 107.91 0.70 0.03

UK Gov 10 yr 0.24 0.05

Ger Gov 10 yr -0.46 0.03

Jpn Gov 10 yr 100.76 0.02 -0.01

US Gov 30 yr 118.80 1.44 0.03

Ger Gov 2 yr 105.53 -0.68 0.01

price prev chg

Fed Funds Eff 0.10 0.09 0.01

US 3m Bills 0.13 0.11 0.02

Euro Libor 3m -0.52 -0.51 -0.01

UK 3m 0.06 0.07 -0.01Prices are latest for edition Data provided by Morningstar

Demetri Sevastopulo — WashingtonTom Mitchell — Singapore

Joe Biden has pledged to penalise com-panies that move jobs overseas and reward businesses that employ people in the US, as he rolled out a “Made in America” plan to help woo voters in the industrial Midwest.

The Democratic presidential nominee said his administration would pursue tax reforms to woo companies into bringing jobs back to the US. His cam-paign said he would force companies to pay a corporate tax rate of 30.8 per cent on profits generated by the overseas production of goods sold back into the US. The tax would also apply to compa-nies using overseas call centres to serv-ice customers in the US.

The proposal comes as a survey of more than 200 American companies

with operations in China found that less than 4 per cent were relocating any pro-duction capacity back to the US. The majority — more than 70 per cent — had no plans to relocate any manufacturing out of China.

The American Chamber of Commerce in Shanghai said that US companies were ignoring President Donald Trump’s threats to “decouple” from China and repatriate manufacturing despite higher tariffs from his long-run-ning trade war.

Mr Trump this week reiterated his enthusiasm for “decoupling” the world’s two largest and closely inte-grated economies. “If we didn’t do busi-ness with [China] we wouldn’t lose bil-lions of dollars,” he said. “We will make America into the manufacturing super-power of the world and will end our reli-ance on China once and for all.”

Mr Biden — who claims the president has failed to meet his 2016 pledge to return manufacturing jobs to the US — said he would provide a 10 per cent tax credit to companies that create jobs domestically, either by returning them from overseas or revitalising previously closed factories.

The Democrat would need congres-sional support to make changes to the tax code — a prospect that would face stiff opposition if the Republicans main-tain control of the Senate. But he also pledged to issue two executive orders in his first week in office to promote “Buy America” policies.

Mr Biden released the plan as he pre-pared to go to Michigan as part of his new strategy to campaign in swing states after months of running a virtual campaign from his Delaware home. Lex page 20

Biden vows to bring US jobs home as Trump’s China ‘decoupling’ falls flat

© THE FINANCIAL TIMES LTD 2020 No: 40,501 ★

Printed in London, Liverpool, Glasgow, Dublin, Frankfurt, Milan, Madrid, New York, Chicago, San Francisco, Orlando, Tokyo, Hong Kong, Singapore, Seoul, Dubai, Doha

Subscribe In print and online

Analysis i PAGE 3; Notebook i PAGE 18

Putin’s party faces dry run of main event in local polls

Austria €3.90 Malta €3.70Bahrain Din1.8 Morocco Dh45Belgium €3.90 Netherlands €3.90Bulgaria Lev7.50 Norway NKr40Croatia Kn29 Oman OR1.60Cyprus €3.70 Pakistan Rupee350Czech Rep Kc105 Poland Zl 20Denmark DKr38 Portugal €3.70Egypt E£45 Qatar QR15Finland €4.70 Romania Ron17France €3.90 Russia €5.00Germany €3.90 Serbia NewD420Gibraltar £2.90 Slovak Rep €3.70Greece €3.70 Slovenia €3.70Hungary Ft1200 Spain €3.70India Rup220 Sweden SKr39Italy €3.70 Switzerland SFr6.20Latvia €6.99 Tunisia Din7.50Lithuania €4.30 Turkey TL19Luxembourg €3.90 UAE Dh20.00North Macedonia Den220

Briefing

i US to withdraw 2,000 troops from IraqThe US will pull more than 2,000 of its troops out of Iraq this month, furthering President Donald Trump’s ambition to withdraw American forces from the deep insecurity they face there.— PAGE 4

i SoftBank investors demand clarityShareholders in SoftBank are calling on the Japanese conglomerate to reveal who is running the unit at the centre of its large US equity options trades, as nerves stoked a 10 per cent dip in its share price.— PAGE 6

i New Renault chief signals deeper cutsLuca de Meo has warned that the French carmaker might have to make deeper cuts than planned to get out of the “red zone” as he tries to copy the strategy of rival PSA.— PAGE 8

i Belarus opposition activist detainedMaxim Znak, one of Belarus’s key opposition figures, was reportedly detained by masked men amid a widespread crackdown on opponents of Alexander Lukashenko, the autocratic president.— PAGE 3

i Risk of financial hit from climate changeA first-of-its-kind report from a Wall Street regulator has warned that climate change brings, in addition to the risk of fires, surging oceans and droughts, a profound threat to the US financial system.— PAGE 2

i Lesbos fire ravages migrants’ campThousands of asylum seekers have fled a blaze that swept through a packed camp on the Greek island of Lesbos, in what critics condemned as a predictable result of hardline EU migration policies.— PAGE 3

i Australia’s tensions with China mountA diplomatic row that saw two Australian journalists flee China this week escalated after Beijing said the homes of Chinese journalists and academics were raided by Australia’s intelligence service.— PAGE 4

Datawatch

About half of all UK mothers surveyed say they have taken on more childcare responsibilities during lockdown, while only 23 per cent of fathers say the same. Fathers are much more likely to say that they are sharing childcare duties.

Childcare during lockdown% of UK respondents

0 20 40 60 80 100Mothers

Fathers

WorkingmothersWorking

fathers

Doing more Sharing equallyPartner doing moreNone/Don’t know

Source: Ipsos Mori (July 2020)

Office politicsDon’t underestimate the power of the workplace — EDITORIAL COMMENT, PAGE 18

China’s Mideast pivotUS’s withdrawal from the region is Beijing’s gain — JAMIL ANDERLINI, PAGE 19

WORLD BUSINESS NEWSPAPER

Pressure on London ECB tells banks to accelerate shift from the City — INSIDE FINANCE, PAGE 6

James Fontanella-Khanand Ortenca Aliaj — New YorkLeila Abboud — Paris Arash Massoudi — London

LVMH’s $16.6bn takeover of US jeweller Tiffany has become embroiled in trade tensions between Paris and Washing-ton, with the world’s largest luxury group saying it pulled out of the deal after the French government urged it to delay completion.

Tiffany hit back with a lawsuit against LVMH, which is controlled by French billionaire Bernard Arnault, alleging that LVMH used tactics such as delaying antitrust filings to run down the clock on the merger agreement.

LVMH’s attempted withdrawal from the deal caps months of manoeuvring by Mr Arnault, dubbed “the wolf in

cashmere” for his hardball dealmaking tactics. He has been seeking to renegoti-ate the terms of the $135-a-share deal agreed last November to reflect the fall-out from the Covid-19 pandemic.

The largest-ever deal in the luxury sector has become the most high-profile example of how transactions agreed before the pandemic have soured because of a radically different business outlook. The stage is now set for a bitter legal battle that will leave judges in the US state of Delaware with the task of deciding which side prevails — and if the deal completes.

The latest skirmish began on Tuesday when LVMH’s legal team told Tiffany that the French foreign minister, Jean-Yves Le Drian, had written to the Paris-based luxury company asking it to delay

the closing of the acquisition until Janu-ary 6 to “support the steps taken vis-à-vis the American government”.

The letter referred to a move by Presi-dent Donald Trump to implement cus-toms duties by that date on certain French industries, including luxury goods, in reaction to France adopting a digital services tax.

“I am sure that you will understand the need to take part in our country’s efforts to defend its national interests,” Mr Le Drian added in the letter.

Jean-Jacques Guiony, LVMH’s chief financial officer, said the group con-sulted lawyers and decided the French government letter was a “valid request” that it could not ignore. As a result, LVMH could not meet the November 24 deadline to complete the merger as laid

out in the agreement with Tiffany — but nor did it want to extend the deadline as the US jeweller had earlier requested.

“The deal cannot take place,” said Mr Guiony. “We are prohibited from closing the transaction and we do not want to lengthen the lock-stop date so the deal cannot happen. It’s is as simple as that.”

Tiffany shares fell 8.4 per cent to $111.67 by midday yesterday.

Roger Farah, Tiffany’s chairman, said LVMH had left it with “no choice but to commence litigation to protect our company and our shareholders”.

The French government said: “In the context of very important international negotiations with our partners, the French government will not be naive, nor passive.”Lex page 20

LVMH refuses to complete Tiffany takeover after France orders delay3 $17bn takeover at risk 3 Protracted legal fight likely 3 US jeweller hits back with lawsuit

Brexit blast Johnson faces heat over treatyBoris Johnson in the House of Commons in London yesterday as the UK’s contro-versial bill to unstitch parts of the Brexit withdrawal treaty was published.

The British prime minister faced growing criticism for breaching interna-tional law from other national leaders as well as one of his predecessors.

Micheál Martin, the Irish prime min-ister, said the bill would damage trust with the EU as a trade deal is being nego-tiated before the transition period ends.

John Major, former British prime minister, said: “If we lose our reputation for honouring the promises we make, we will have lost something beyond price that may never be regained.”Report page 2Big Read page 17

Jessica Taylor/AFP

The wranglings show how deals agreed before the virus crisis have soured amid a radically altered business outlook

SEPTEMBER 10 2020 Section:FrontBack Time: 9/9/2020 - 19:07 User: nick.miller Page Name: 1FRONT USA, Part,Page,Edition: EUR, 1, 1

2 ★ FINANCIAL TIMES Thursday 10 September 2020

FINANCIAL TIMESBracken House, 1 Friday Street, London EC4M 9BT.

Subscriptions & Customer serviceSubscription offers: www.ft.com/subscriptionContact: +44 207 775 6000, [email protected] your personal account: mma.ft.com AdvertisingTel: +44 20 7873 4000 [email protected],[email protected] to the [email protected] appointmentsTel: +44 20 7873 4909www.exec-appointments.com

Published by: The Financial Times Limited,Bracken House, 1 Friday Street, London EC4M 9BT. Tel: +44 20 7873 3000; Fax: +44 20 7407 5700.Editor: Roula Khalaf.Germany: Demirören Media, Hurriyet AS-Branch Germany, An der Brucke 20-22, 64546 Morfelden-Walldorf, +49 6105 327100. Responsible Editor, Roula Khalaf. Responsible for advertising content, Jon Slade.Italy: Monza Stampa S.r.l., Via Michelangelo Buonarroti, 153, Monza, 20900, Milan. Tel. +39 039 28288201Owner, The Financial Times Limited; Rappresentante e Direttore Responsabile in Italia: I.M.D.Srl-Marco Provasi - Via G. Puecher, 2 20037 Paderno Dugnano (MI), Italy. Milano n. 296 del 08/05/08 - Poste Italiane SpA-Sped. in Abb.Post.DL. 353/2003 (conv. L. 27/02/2004-n.46) art. 1 .comma 1, DCB Milano.Spain: Bermont Impresion, Avenida de Alemania 12, CTC, 28821, Coslada, Madrid. Legal Deposit Number

(Deposito Legal) M-32596-1995;Publishing Director, Roula Khalaf;Publishing Company, The Financial Times Limited, registered office as above. Local Representative office; C/ Infanta Maria Teresa 4, bajo 2, 28016, Madrid. ISSN 1135-8262.UAE: Masar Printing & Publishing, P.O. Box 485100, Dubai. Editor in Chief: Roula Khalaf. Qatar: Dar Al Sharq, PO Box 3488, Doha-Qatar. Tel: +97 44557825France: Publishing Director, Jonathan Slade, 46 Rue La Boetie, 75008 Paris, Tel. +33 (0)1 5376 8256; Fax: +33 (01) 5376 8253; Commission Paritaire N° 0919 C 85347; ISSN 1148-2753. Turkey: Dunya Super Veb Ofset A.S. 100. Yil Mahallesi 34204, Bagcilar- Istanbul, Tel. +90 212 440 24 24.Sweden: Responsible Publisher - Christer Norlander

© Copyright The Financial Times 2020.Reproduction of the contents of this newspaper in any manner is not permitted without the publisher’s prior consent. ‘Financial Times’ and ‘FT’ are registered trade marks of The Financial Times Limited. The Financial Times and its journalism are subject to a self-regulation regime under the FT Editorial Code of Practice: www.ft.com/editorialcode

Reprints are available of any FT article with your company logo or contact details inserted if required (minimum order 100 copies).One-off copyright licences for reproduction of FT articles are also available.For both services phone +44 20 7873 4816, or email [email protected]

emerged in 1987 as a rival to the secular, left-leaning Palestine Liberation Organi-zation, drawing inspiration from Egypt’s Muslim Brotherhood. The Turkish pres-ident, whose roots lie in Islamist politics, views the Brotherhood and its offshoots as fellow travellers. “There is this sense of kindred spirit and solidarity,” said Steven Cook of the Council on Foreign Relations in Washington.

It also works politically for Mr Erdogan, who has melded foreign policy with domestic considerations, and strives to cast himself at home as a champion of Muslims across the world.

Mr Erdogan inherited a strong rela-tionship with Israel when he swept to power almost 20 years ago. Turkey, which was the first Muslim-majority nation to recognise the fledgling Jewish state, forged close co-operation on defence and security with Israel in the 1990s. Trade with Israel was $6bn last year, according to Turkish official statis-tics — up from $4.3bn in 2016.

But a clash between Mr Erdogan and President Shimon Peres on a Davos stage in 2009 marked the “dividing line” between two chapters in Turkey-Israeli

relations, said Asli Aydintasbas, a senior policy fellow at the European Council on Foreign Relations.

For Israel, Turkey’s ideological sup-port of Hamas had until recently been a manageable irritant. But a 2019 meeting between Mr Erdogan and Ismail Hani-yeh, the chief of Hamas’ political wing, signalled a shift in Turkish strategy, from moral support to material, accord-ing to people briefed on the issue.

As well as financial help, over the past two years, Turkey has also granted citi-zenship to dozens of Hamas members, according to one person briefed on the issue, allowing them to travel without visas to more than 100 countries. This brought relations between Turkey and Israel to a near halt, according to two others briefed on the situation — and was what triggered the recent repri-mand from the US.

The Israeli security establishment had already been suspicious of Turkish passport holders, subjecting them to stringent scrutiny the Turks describe as targeted harassment. Turkey insists it never grants citizenship to people with proven links to terrorism or violence.

Turkey. Alliances

Erdogan’s embrace of Hamas riles Israel

High-level support: Palestinians wave Hamas flags during a demonstration outside Al Aqsa Mosque in East Jerusalem. Below, Recep Tayyip Erdogan Ahmad Gharabli/Getty

‘Erdogan sees emerging alliances in the region as a threat but he’s also presenting himself as the leader of the Muslim world’

INTERNATIONAL

George Parker, Peter Foster and Jim Pickard — London Jim Brunsden — Brussels

Boris Johnson faced renewed EU anger yesterday as he pressed ahead with a bill to unstitch parts of Britain’s Brexit treaty, even though UK ministers have admitted it breaks international law.

Irish prime minister Micheál Martin said the bill, which would override a carefully crafted UK-EU deal on the future of Northern Ireland, woulddamage trust between the two sidesas they tried to negotiate a new trade deal in time for the end of the Brexit transition period on December 31.

If approved by MPs, the bill, pub-lished yesterday, would allow Britain to interpret the deal unilaterally. It includes the crucial phrase “notwith-standing inconsistency or incompatibil-ity with international or domestic law”.

Speaking to MPs at prime minister’s questions, Mr Johnson defended the bill. “My job is to uphold the integrity of the UK but also to protect the Northern Ire-land peace process and the Good Friday Agreement,” he said. “And to do that, we need a legal safety net to protect our country against extreme or irrational interpretations of the protocol.”

Mr Martin said he agreed with Ursula von der Leyen, European Commission president, that it amounted to a “very serious development” and insisted he would raise his “strong concerns” with Mr Johnson in person.

Former prime minister John Major also issued a stinging rebuke, saying the move would damage the UK’s interna-tional standing. “For generations, Brit-ain’s word — solemnly given — has been accepted by friend and foe,” said Sir

John. “Our signature on any treaty or agreement has been sacrosanct. If we lose our reputation for honouring the promises we make, we will have lost something beyond price that may never be regained.”

Despite the growing anger, Michel

Barnier, EU chief negotiator, was in London yesterday to try to unblock the stalled Brexit trade talks, which have foundered on disputes about fisheries and state aid policy.

Shortly after publication of the inter-nal market bill, Mr Johnson’s govern-ment published its plans “for a new approach to subsidy control”, seen as a sign Downing Street was hoping to avoid a breakdown of talks this week.

The proposals were not expected to be published until next week, but were rushed out to coincide with the resump-tion of talks between Mr Barnier and his UK counterpart, David Frost.

But the UK’s promise that it did “not intend to return to the 1970s approach of trying to run the economy or bailing out unsustainable companies” comes nowhere near to satisfying Brussels’

demand for a robust legal framework with independent enforcement mecha-nisms. The UK is proposing it will sim-ply operate under looser World Trade Organization subsidy rules.

Mr Barnier will review the new inter-nal market bill and state aid proposals before reporting back to EU capitals at the end of the week.

Downing Street’s latest attempt to explain its breach of international law — that Mr Johnson did not fully under-stand what he was agreeing in his deal with the EU last October — is unlikely to impress fellow leaders. “The treaty was written in a rush and was never meant to be the final agreed text between the UK and the EU,” Number 10 said. Additional reporting by Sebastian Payne in London and Arthur Beesley in DublinSee Editorial Comment

Victor Mallet — Paris

France’s new minister for external trade has warned that a Brexit deal remains unattainable so long as the UK remains unwilling to be bound by rules that would ensure a “level playing field” in trade with the EU.

Speaking after the UK confirmed it planned legislation to redefine parts of the withdrawal agreement affecting Northern Ireland, Franck Riester said a free trade deal was still possible pro-vided the agreement was comprehen-sive and enforceable, did not allow for social or fiscal “dumping”, and included access for EU boats to fish in British waters.

“There’s a game of bluff going on,” he said in an interview with the Financial Times. “We’ll try to stay calm and serene but firmly behind the line of the EU27 . . . In any deal, in the end there is a compromise that can come into play. But that is unattainable for the moment because the UK is not moving on the essential matter, which is the ability to ensure that trade is fair.”

Mr Riester added that the same need for a level playing field lay behind France’s push for the EU to adopt a fron-tier carbon tax so that its trade partners could not compete unfairly with Euro-pean manufacturers that may be bound by tighter environmental regulations and pay more for cleaner energy.

Opinions were “changing fast in Europe on the need to become a power that ensures respect for a certain number of principles such as reciproc-ity, the fight against global warming, mobilising for biodiversity, and so on”, Mr Riester said. “I think the [coronavi-rus] crisis has accelerated the aware-ness in public opinion and among differ-ent leaders.” The pandemic had also hastened French “reshoring” of strate-gic industries and a European rethink of globalisation, he added. But he insisted this did not signal a retreat from inter-national trade.

Mr Riester, who fell ill from Covid-19 in early March, defended France’s deci-sion to allocate €1bn of its €100bn recovery plan to helping companies start production at home of medical equipment such as protective face masks as well as other items such as electronics, food products and indus-trial inputs.

“Of course it’s not about making eve-rything in Europe or saying there will never again be a need to import raw materials, products or services,” he said. “It’s about ensuring that we are self-suf-ficient in certain sectors or for certain products that seem to us essential.”

Even before the pandemic, President Emmanuel Macron and his finance minister, Bruno Le Maire, said France and the EU needed to reduce their dependence on Asia and the US for key products and services, especially in emerging or fast-growing technologies such as artificial intelligence and elec-tric vehicles.

Acute shortages of masks and certain medicines, including paracetamol pain-killers, when the pandemic filled hospi-tals earlier this year prompted the gov-ernment to add medical ingredients and equipment to the list of strategic items to be manufactured in France or the EU. See FT Big Read

Post-Brexit ties

Johnson faces rising EU anger over treatyTalks continue as UK bill threatens to undermine Irish border agreement

‘If we lose our reputation for honouring promises we make, we will have lost something beyond price’

EU divorce

French trade minister warns UK on Brexit level playing field

said a UN official, who has mediated between Israel and Hamas for nearly a decade. “Find the one thing that Israel doesn’t have an answer to, doesn’t know how to manage and can’t get rid of, and make it your own personal vanity project.”

In the past decade, Turkey has funded hospitals, schools and projects both in the Gaza Strip, run by Hamas, and in the occupied West Bank, moves that have irked the Israeli government but been welcomed by Palestinians, who have long sought a champion unmoved by Israel’s anti-Iran posture and untamed by US foreign policy demands.

Turkey’s president has often scolded Prime Minister Benjamin Netanyahu, who has led Israel’s most rightwing gov-ernment in years. Mr Erdogan has made the Al Aqsa Mosque, Islam’s third-holi-est shrine and perhaps the most sensi-

tive of issues dividing the Jews and Arabs, a centrepiece of his pledge to liberate Palestine from Israeli occupation.

Mr Erdogan’s embrace of Hamas makes ideological sense. The Islamist militant group

Mehul Srivastava — Jaffa Laura Pitel — Ankara

At Friday prayers at the Al Aqsa Mosque in East Jerusalem, the faithful often hold up portraits of Recep Tayyip Erdogan, the Turkish president, worshipping under the gold crescent on the Dome of the Rock that was paid for by Turkey.

Mr Erdogan’s popularity with Pales-tinians reflects his long championing of their struggle for nationhood and comes as their cause has slid down the list of regional concerns, sidelined by Israel’s wooing of the Gulf states. He has stepped into that vacuum, coupling his adventures in Libya and Syria with a desire to wield influence in the Israeli-Palestinian conflict.

For Israel, the most troubling aspect is his embrace of Hamas, the militant group that controls the Gaza Strip, and is considered a terrorist group by Israel, the EU and the US.

The US, a close ally of Israel, has also voiced concerns. Last month, in a rare public statement on this relationship, it strongly objected to Mr Erdogan hosting two Hamas leaders in Istanbul, chiding him for his “outreach to the terrorist organisation”.

The US rebuke came after Mr Erdogan tweeted a photo of his meeting with Hamas figures, including Saleh al-Arouri, a prominent military com-mander who worked in Lebanon, Syria and the occupied West Bank.

“There are both geopolitical and ideo-logical considerations here,” said Sarah Feuer of the Washington Institute for Near East Policy in Tel Aviv, referring to Turkey’s regional rivalry with the United Arab Emirates and Saudi Arabia.

“Erdogan sees emerging alliances in the region as a threat but he’s also pre-senting himself as the leader of the Mus-lim world and flag bearer for Islamist movements, to counter the Emirati-Saudi-Egyptian camp. There’s a broader struggle still under way over the con-tours of the regional order, and that is partly what motivates him.”

“It fits in perfectly,”

President’s warm relations

with militant group plays into

broader regional struggle

Gregory Meyer — New York

Climate change threatens not only fires, drought and surging seas but pro-found risks to the financial system, a federal advisory panel has warned in a first-of-its-kind report from a Wall Street regulator.

The finding was published yesterday by a special climate subcommittee to the Commodity Futures Trading Commis-sion, which has oversight for the US futures and swaps markets. The body recommended changes in corporate dis-closure, investments and central bank asset purchases, which conventionally are the domain of other federal bodies.

Under President Donald Trump, the White House has dismantled policies to control greenhouse gases, the main con-tributor to global warming. His Depart-ment of Labor has sought to restrict pension administrators’ freedom to select investments on environmental, social and governance grounds.

The subcommittee’s report was the first from a government entity to exam-ine the threats that a changing climate posed to US financial stability, said Ros-tin Behnam, the CFTC commissioner

who convened the group. Members included delegates of banks such as Citi-group and JPMorgan Chase, fund man-agers such as Allianz Global Investors and Vanguard, commodities and energy companies such as Cargill and Cono-coPhillips, and environmental organisa-tions. Their findings were unanimous.

“US financial regulators must recog-

nise that climate change poses serious emerging risks to the US financial sys-tem, and they should move urgently and decisively to measure, understand, and address these risks,” the committee said.

It added that financial markets had not accurately accounted for the risks of physical damage from climate change

or the costs of switching to an energy system that led to lower emissions.

The subcommittee agreed with most economists that putting a price on car-bon would be the most efficient way to curtail greenhouse gases, while acknowledging that this must be done by lawmakers, not regulators.

“Financial markets today are not pricing climate risk. The financial mar-kets cannot do that on their own. Until this fundamental flaw is fixed, capital will flow in the wrong direction,” wrote Bob Litterman, a former Goldman Sachs executive who chaired the sub-committee.

It suggested reforms to derivatives markets, for example by developing new contracts to hedge climate-related risk, and offered ideas that ranged out-side the CFTC’s jurisdiction. Regulators should update the Securities and Exchange Commission’s guidance on climate risk disclosure to improve con-sistency among listed companies, it said. Contrary to the Department of Labor, the subcommittee said climate-related factors might be considered along with traditional financial consid-erations in pension investments.

Wall Street

Climate change poses risk to financial system, says regulator

Brussels wants the EU to accelerate emissions reductions over the next decade as part of the bloc’s goal of becoming the first climate neutral continent in the world by 2050.

The European Commission will next week unveil a plan for the EU to hit an emissions reduction target of “at least 55 per cent” by 2030, compared to 1990 levels, according to a draft document seen by the Financial Times. The target is a jump from the current 40 per cent goal.

The 2030 goal will need to be approved by a majority of member states and the European Parliament.

Environmental groups and the Greens in the European Parliament have pushed for a 65 per cent emissions target for 2030 in order to achieve carbon neutrality by 2050.

But Poland, Hungary, Slovakia, and the Czech Republic have warned that Brussels’ impact assessment which underpins the higher 2030 target should be “credible”. Anna Zalewska, a Polish MEP, said higher climate targets risked imposing “aggressive and expensive deadlines for EU nations who need to prioritise the welfare of their citizens”. Mehreen Khan

Emissions goalBrussels plans to unveil more carbon curbs

MAKE A SMART INVESTMENTSubscribe to the FT today at FT.com/subscription

World Markets

STOCK MARKETS

Mar 30 prev %chg

S&P 500 2365.93 2361.13 0.20


Dow Jones Ind 20703.38 20659.32 0.21

FTSEuro�rst 300 1500.72 1493.75 0.47

Euro Stoxx 50 3481.67 3475.27 0.18

FTSE 100 7369.52 7373.72 -0.06

FTSE All-Share 4011.01 4011.80 -0.02

CAC 40 5089.64 5069.04 0.41

Xetra Dax 12256.43 12203.00 0.44

Nikkei 19063.22 19217.48 -0.80

Hang Seng 24301.09 24392.05 -0.37

FTSE All World $ 297.99 297.73 0.09

CURRENCIES

Mar 30 prev

$ per € 1.074 1.075

$ per £ 1.249 1.241

£ per € 0.859 0.866

¥ per $ 111.295 111.035

¥ per £ 139.035 137.822

€ index 89.046 89.372

SFr per € 1.069 1.072

Mar 30 prev

€ per $ 0.932 0.930

£ per $ 0.801 0.806

€ per £ 1.164 1.155

¥ per € 119.476 119.363

£ index 76.705 76.951

$ index 104.636 103.930

SFr per £ 1.244 1.238COMMODITIES

Mar 30 prev %chg

Oil WTI $ 50.22 49.51 1.43

Oil Brent $ 52.98 52.54 0.84

Gold $ 1248.80 1251.10 -0.18

INTEREST RATES

price yield chg

US Gov 10 yr 98.87 2.38 0.00

UK Gov 10 yr 100.46 1.21 -0.03

Ger Gov 10 yr 98.68 0.39 -0.01

Jpn Gov 10 yr 100.45 0.06 0.00

US Gov 30 yr 100.14 2.99 0.01

Ger Gov 2 yr 102.58 -0.75 0.00

price prev chg

Fed Funds E� 0.66 0.66 0.00

US 3m Bills 0.78 0.78 0.00

Euro Libor 3m -0.36 -0.36 0.00

UK 3m 0.34 0.34 0.00Prices are latest for edition Data provided by Morningstar

LAURA NOONAN — DUBLINJENNIFER THOMPSON — LONDON

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

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

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

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

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

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

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

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

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

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

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

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

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

Citywatchdog sends a clearmessage asbanker loses joboverWhatsAppboast

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

Shutdown risk as borderwall bid goes over the top

FRIDAY 31 MARCH 2017

Briefing

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

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

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

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

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

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

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

Datawatch

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

© THE FINANCIAL TIMES LTD 2017No: 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 In print and onlinewww.ft.com/subscribenowTel: 0800 298 4708

For the latest news go towww.ft.com

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

Sources: Jane’s Terrorism and Insurgency Centre

Terror attacks in western Europe

Highlighted attack Others

NorwayParis Nice

Brussels

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

WORLDBUSINESSNEWSPAPER

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

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

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

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

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

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

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

Lloyd’s of Brussels Insurancemarketto tapnew talent poolwithEUbase

AFP

JAMES BLITZ — WHITEHALL EDITOR

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

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

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

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

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

Problems with CDS and other projectsessential toBrexit could force London to

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

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

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

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

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

World Markets

STOCK MARKETS

Mar 31 prev %chg

S&P 500 2367.10 2368.06 -0.04


Dow Jones Ind 20689.64 20728.49 -0.19

FTSEuro�rst 300 1503.03 1500.72 0.15

Euro Stoxx 50 3495.59 3481.58 0.40

FTSE 100 7322.92 7369.52 -0.63

FTSE All-Share 3990.00 4011.01 -0.52

CAC 40 5122.51 5089.64 0.65

Xetra Dax 12312.87 12256.43 0.46

Nikkei 18909.26 19063.22 -0.81

Hang Seng 24111.59 24301.09 -0.78

FTSE All World $ 297.38 298.11 -0.24

CURRENCIES

Mar 31 prev

$ per € 1.070 1.074

$ per £ 1.251 1.249

£ per € 0.855 0.859

¥ per $ 111.430 111.295

¥ per £ 139.338 139.035

€ index 88.767 89.046

SFr per € 1.071 1.069

Mar 31 prev

€ per $ 0.935 0.932

£ per $ 0.800 0.801

€ per £ 1.169 1.164

¥ per € 119.180 119.476

£ index 77.226 76.705

$ index 104.536 104.636

SFr per £ 1.252 1.244COMMODITIES

Mar 31 prev %chg

Oil WTI $ 50.46 50.35 0.22

Oil Brent $ 53.35 53.13 0.41

Gold $ 1244.85 1248.80 -0.32

INTEREST RATES

price yield chg

US Gov 10 yr 98.63 2.41 -0.01

UK Gov 10 yr 100.35 1.22 0.02

Ger Gov 10 yr 99.27 0.33 -0.01

Jpn Gov 10 yr 100.36 0.07 0.00

US Gov 30 yr 99.27 3.04 0.01

Ger Gov 2 yr 102.57 -0.75 0.00

price prev chg

Fed Funds E� 0.66 0.66 0.00

US 3m Bills 0.78 0.78 0.00

Euro Libor 3m -0.36 -0.36 0.00

UK 3m 0.34 0.34 0.00Prices are latest for edition Data provided by Morningstar

ALEX BARKER — BRUSSELSGEORGE PARKER — LONDONSTEFAN WAGSTYL — BERLIN

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

European Council president DonaldTusk’s first draft of the guidelines,which are an important milestone onthe road to Brexit, sought to damp Brit-ain’s expectations by setting out a“phased approach” to the divorce proc-ess that prioritises progress on with-drawal terms.

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

ambitioustradeandairlineaccessdeals.Gibraltar yesterday hit back at the

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

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

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

Brussels sees little room for compro-

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

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

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

Brussels takes tough stance onBrexitwith Spainhandedveto overGibraltar

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

Living wage rise to pilepressure on care services

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

© THE FINANCIAL TIMES LTD 2017No: 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

Subscribe In print and onlinewww.ft.com/subscribenowTel: 0800 298 4708

For the latest news go towww.ft.com

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

HOW DRIVERLESS TECHNOLOGY IS CHANGING AN AMERICAN WAY OF LIFE

THE END OF THE ROAD FT WEEKEND MAGAZINE

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

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

How To Spend It

Chic new lodgings in ScotlandMAGAZINE

Art of persuasionMystery deepensover disputed painting of JaneAusten

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

RALPH ATKINS — ZURICHDUNCAN ROBINSON — BRUSSELS

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

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

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

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

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

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

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

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

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

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

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

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

FEBR

UARY

4 2017

THE RISE OF ECO-GLAM

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

SEPTEMBER 10 2020 Section:World Time: 9/9/2020 - 18:31 User: john.conlon Page Name: WORLD1 USA, Part,Page,Edition: EUR, 2, 1

Thursday 10 September 2020 ★ FINANCIAL TIMES 3

Henry Foy — Moscow

Hours before succumbing to nerve agent novichok on a plane to Moscow, Russia’s most prominent opposition activist Alexei Navalny posted a photo-graph of himself on Instagram with a group of supporters in the Siberian city of Tomsk.

His message was aimed at voters in the city, who go to the polls on Sunday in one of dozens of elections for local gov-ernors and parliaments in 23 of Russia’s 85 regions. Mr Navalny urged them to turf out lawmakers backed by President Vladimir Putin’s ruling United Russia party. “The party in power has a lot of money, but we can only rely on the help of good, honest people,” said Mr Nav-alny, who emerged from a coma in a Ber-lin hospital on Monday. “Crooks will not expel themselves!”

Sunday’s regional elections represent the most important test of the popular-ity of Mr Putin’s party ahead of next year’s parliamentary elections. A stag-nant economy and the impact of the coronavirus pandemic have helped inflame public anger sparked by specific local issues where voters feel aban-doned or slighted by United Russia, which holds a supermajority in the national parliament but whose popular-ity fell to a record low last month.

“It is definitely a dress rehearsal [for 2021],” said Tom Adshead, director of research at Macro-Advisory, a strategic consultancy. “Showing Putin that the machine is in place, it all works and that he doesn’t need to worry about next year . . . It is an audience of one.”

But the machine is showing signs of malfunction.

Protests in Khabarovsk, a region in the Far East, have run for two months after its governor was arrested and replaced by the Kremlin, sparking copy-cat protests across the country. While there are no polls in Khabarovsk on Sunday, opposition candidates are tar-geting other restive regional electorates.

United Russia’s popularity fell to 30.5 per cent last month, according to the state-run pollster. It won 54.2 per cent of the vote in the 2016 parliamentary elec-tion, but since then has presided over falling real incomes for three of the past four years, an increase in the retirement age and a pandemic response that has seen Russia record the world’s fourth-highest number of Covid-19 infections.

The tightly centralised system of con-trol implemented by Mr Putin means regional governors and parliaments exercise limited power. But they are also beholden to the Kremlin for handouts, making them prime targets for his opponents. “As a local administration your incentive is not to be friendly to your constituents but to the centre so you get more resources and support for your re-election,” said Elina Ribakova, deputy chief economist at the Institute of International Finance. “And the financial situation has not got better over time, but worse.”

Analysts say that Kremlin-backed candidates in gubernatorial races in the Irkutsk, Komi and Arkhangelsk regions face the strongest challenges, while

opposition parties could overturn United Russia majorities in the regional parliaments of Novosibirsk and Magadan, among others.

In all five of these regions, roughly a third of voters rejected a new constitu-tion ratified by a national referendum that allowed Mr Putin to remain as pres-ident for an additional 12 years.

In Irkutsk, a region in eastern Siberia, the federal government is accused of poor handling of vast floods last year that killed dozens and left thousands homeless. In the north-western regions of Arkhangelsk and Komi, protests have run since 2018 against plans to build a landfill for Moscow’s rubbish at a site close to their joint border.

The pandemic has also disproportion-ately affected Russia’s regions, where hospitals, medical provisions and healthcare budgets are far worse than those in the capital, and many are still under various levels of lockdown.

The Kremlin has in recent weeks sought to play down the threat of its nominees failing to win more than 50 per cent of votes in gubernatorial elections, prompting a run-off that

All smiles: President Vladimir Putin attends Moscow City Day celebrationsat Zaryadye concert hall this weekAlexei Druzhinin/RIA Novosti/EPA-EFE

‘Our major project is smart voting, the primary aim, and probably the Kremlin’s primary concern’

Edward White — Wellington Christian Shepherd — Beijing

Kim Jong Un’s dependence on illicit Chinese business networks and aid from Beijing is set to increase as the North Korean leader faces the coun-try’s worst economic crisis in almost a decade, analysts say.

The 36-year-old dictator said last month that North Korea was struggling to meet its economic objectives. The admission was a rare concession of fail-ure and a blow to his hallmark policy of economic growth alongside nuclear weapons development, a dual-track known as the byungjin line.

The combination of tough US and UN sanctions, coupled with the fallout from the coronavirus pandemic and the sub-sequent plunge in legal trade with China — as well as a series of recent typhoons and flooding — has increased the impor-tance of revenue from North Koreans operating businesses in other countries, remittances from overseas workers and cash from cyber crime.

“It is probably worse than it has been for a long time . . . Things do look very, very bad, and they looked like they were bad before the coronavirus hit,” said Peter Ward of the University of Vienna.

North Korea has not reported a single confirmed coronavirus infection within

its borders, a feat met with scepticism by some international experts.

Data on the state’s finances are rare and often unreliable. This means ana-lysts are reluctant to provide estimates of the potential respite from sanctions-busting revenue.

But a report published this month by the Royal United Services Institute, a London-based think-tank, found that a network of 150 Chinese businesses had a central role in facilitating North Korean access to international markets. It said they were involved in about $2.7bn worth of shipments between 2014 and 2017, representing about 20 per cent of the $13.9bn value of North Korea’s trade during that period.

Several “red flags” from the business operations, such as co-located addresses and phone numbers, as well as minimal public information, indi-cated the groups were front companies for North Korean interests, RUSI said. The report also noted that 135 of the companies were still registered as active on Chinese corporate databases, sug-gesting many remained operational despite the imposition of US and UN Security Council sanctions.

Separately, four US government agen-cies last month released a joint alert over the resumption of activity this year by a group of “North Korean govern-

can galvanise opposition sentiment.That said, certain administrative barri-ers have been deployed to block poten-tial challengers from running in races that are set to be close.

The likely beneficiaries of poor show-ings by United Russia will be parties from the so-called systemic opposition: parties approved by the Kremlin that offer voters a choice, but typically sup-port Mr Putin on critical national issues.

Mr Navalny and his organisation rep-resent true opposition to United Russia and are often barred from ballots. Instead, he has developed a system of “smart voting”, which in elections last year helped unseat incumbents by directing opposition votes to the most likely challenger.

Some of his supporters claim he was poisoned in a bid to stall that effort. The Kremlin has denied any involvement.

“Our major project is smart voting, the primary aim, and probably the Kremlin’s primary concern,” said Vladimir Milov, a senior aide to Mr Nav-alny. “This will continue regardless [of his poisoning].”See Notebook

at the National Committee on North Korea, a US think-tank, said “travel restrictions have made it far more diffi-cult for North Korea to send workers and trading network operatives abroad, so the regime has had to rely on those overseas networks in place at the begin-ning of the year”.

Mr Lankov said that despite the eco-nomic hardship facing North Korea’s 25m people — 60 per cent of whom already face food insecurity, according to the US government — China would not let the situation deteriorate into a political crisis. Beijing had made a stra-tegic decision to support Mr Kim as part of a “buffer” against the US and would ensure Pyongyang had access to food and fuel, he added.

“They will just send enough food, just to make sure North Koreans will be mal-nourished but not starving to death,” he said. “They will send enough fuel, just to make sure vital production can con-tinue. They will send basic supplies, just to make sure that North Koreans will not get angry and go out on the streets.”

Mr Ward added that Mr Kim theoreti-cally had the option to ease pressure via economic “liberalisation” — a move that would cut against a broader reassertion of centralised control. Additional reporting by Katrina Manson in Washington and Kang Buseong in Seoul

Economic crisis

North Korea’s dependence on China rises as sanctions bite

INTERNATIONAL

Russian regional elections to test Putin’s party machineSunday’s ballot will be a dress rehearsal for a parliamentary poll next year

James Shotter — Warsaw Max Seddon — Moscow

Maxim Znak, one of Belarus’s leading opposition figures, was reportedly detained by masked men yesterday, in the latest step in a sweeping crackdown on opponents of autocratic president Alexander Lukashenko.

Mr Lukashenko, who has ruled the east-ern European nation since 1994, has been battling to retain his hold on power since huge protests erupted against his regime after he claimed a landslide vic-tory in a deeply flawed presidential elec-tion last month.

Local media reported that Mr Znak, a lawyer, was taken away from his office by men in plain clothes, and that his house was searched.

Gleb Glebov, from the team of jailed opposition presidential candidate Viktor Babariko, told Tut.by, an inde-pendent Belarusian website, that he had been in touch with Mr Znak briefly before losing contact.

“At 8.30 Maxim was meant to have an interview, but he didn’t join the Zoom call. I called him. He said: ‘It looks like someone is here’, rang off and wrote the word ‘masks’. Now he’s unreachable,” Mr Glebov said.

The detention of Mr Znak means that five of the seven leaders of the Coordina-tion Council, set up by Svetlana

Tikhanovskaya, the main opposition candidate in last month’s election, to negotiate a transition of power away from Mr Lukashenko, have either been detained or forcibly taken abroad.

Prosecutors have launched a criminal probe into the council, claiming that it represents a threat to state security.

Maria Kolesnikova — who along with Ms Tikhanovskaya and Veronika Tsep-kalo spearheaded the opposition cam-paign against Mr Lukashenko and is the only one of the three women to remain in Belarus — is facing charges under the probe, which carry a sentence of up to five years in prison.

Investigators interrogated Mr Znak last month as a witness in the case.

Svetlana Alexievich, the Nobel laure-ate who is the council’s only member still at large, summoned journalists and EU diplomats to her apartment yester-day after receiving phone calls and knocks at the door from unknown men.

“First they kidnapped the country, now they’re kidnapping the best of us,” she wrote in a statement published on the website of Belarus’ branch of the Pen Club, a writers’ organisation.

Mike Pompeo, US secretary of state, warned Washington was considering “additional targeted sanctions to pro-mote accountability for those involved in human rights abuses and repression in Belarus”.

Eastern Europe

Belarus opposition leader held as crackdown escalates

Jude Webber — Mexico City

The Mexican government promised austerity in a budget for 2021 but was criticised by analysts for its overly opti-mistic growth forecasts that were likely to pile pressure on a country struggling with one of the biggest Covid-19 crises.

The 2021 finance package predicted the economy would shrink 8 per cent this year and bounce back to 4.6 per cent growth next year. But the estimates were out of step with the mean forecast of 35 economists in the central bank’s latest monthly survey, which pointed to a median 9.9 per cent fall in 2020 and meagre 2021 growth of 2.95 per cent.

The Bank of Mexico has outlined a worst-case contraction of 12.8 per cent this year and Mariana Campos, budget specialist at México Evalúa, a think-tank, said it was “sinful that with the current level of [Covid-19] uncertainty, the government is not budgeting differ-ent scenarios”.

Arturo Herrera, finance minister, insisted the targets were responsible and not contingent upon a vaccine allowing the economy to resume activ-ity faster.

Nevertheless, oil production and export price assumptions were met with caution in the financial markets. Pemex, the state oil company, will boost produc-tion to 1.857m barrels per day in 2021,

the budget predicted, a far cry from July production, with private sector part-ners, of 1.595m — the lowest level since 1979. While Mexican oil for export was trading at $35.50 per barrel on Tuesday, the budget pencilled in a “prudent” price of $42.10.

“It’s unnecessarily optimistic,” said Alonso Cervera at Credit Suisse. “The finance ministry will now be playing defence, having to answer the questions of analysts and rating agencies.”

The Mexican government has scant room for manoeuvre. After Pemex was cut to junk status in April by a second rating agency, the country is widely expected to face sovereign downgrades that could strip it of its coveted invest-ment grade status, perhaps as early as 2021.

President Andrés Manuel López Obrador has refused to take on debt to fund Covid-19 stimulus measures, say-ing developed countries that had done so “took the easy way out”. Mr Herrera said that would have cost “money we don’t have”.

The president has also ruled out tax hikes or new taxes. Mr Herrera said it was “not the moment” for tax changes. But with revenues under pressure as the pandemic drags on, analysts widely believe the government should plan comprehensive tax reform sooner rather than later.

Budget

Mexico’s ‘optimistic’ growth forecasts met with scepticism

Kerin Hope — AthensMichael Peel — BrusselsErika Solomon — Berlin

Thousands of asylum seekers have fled a blaze that swept through an over-crowded camp on the Greek island of Lesbos, in what critics condemned as a predictable result of hardline EU migration policies.

Brussels announced it would fund the immediate transfer of hundreds of unaccompanied children and teenagers from the Moria site to the Greek main-land, after the conflagration gutted shacks and container homes in a facility long notorious for its squalor.

Kyriakos Mitsotakis, the Greek prime minister, declared a state of emergency on the island and warned the govern-ment would not allow asylum seekers to leave Lesbos for the mainland.

“I recognise conditions are tough at Moria but there can be no excuse for a violent response when it comes to health controls,” he said in a video posted on his Facebook page, in a refer-ence to the multiple fires in the early hours of yesterday, whose cause has not been independently confirmed.

“There will be some restrictions on movement and local shutdowns but I feel sure the islanders will understand and will be supportive.”

The premier said Greece would con-tinue to maintain tight controls on its

maritime border with Turkey to pre-vent renewed arrivals of asylum seek-ers. He has denied accusations that the country’s coastguard violated interna-tional human rights law by pushing back boats filled with asylum seekers into Turkish waters. The fire comes just weeks before the European Commission is due to launch its latest effort to reform the EU’s migration and asylum system after years of wrangling since the 2015-16 spike in arrivals in the bloc.

Critics charge that the dismal condi-tions in Moria and other Greek island camps reflect an increasingly harsh effort by EU countries to discourage people from even trying to make the journey to Europe.

“Moria was the emblem of an EU deterrence policy in which the ware-housing of asylum seekers in humiliat-ing circumstances was THE point,” tweeted Daniel Howden, senior editor at the Refugees Deeply digital media project.

“Any other approach is seen as creat-ing a ‘pull factor’. This base assumption is impervious to evidence.”

Asylum seekers

Fire at Greek migrant camp leaves thousands homeless

Young victim: a boy with two water containers sits next to destroyed shelters following a fire at the camp

SOUTH KOREA

Kurgan

Chelyabinsk

Rostov

Krasnodar

Sevastopol*

Novosibirsk Irkutsk

Yamal-Nenets

Arkhangelsk

Komi

Leningrad

PermKrai

Magadan

JewishAutonomous

Region

Kamchatka

Vladivostok

St Petersburg

Moscow

500 km

KAZAKHSTANMONGOLIA

CHINA

UKRAINE

1

3 2 10

4 5 6 8

79

11

JAPAN

*Crimea is annexed by Russia but this is not recognised by the international community Cartography: Alan Smith Sources: Mapzen.com/OpenStreetMap; FT research

Smolensk1

Bryansk3

Kaluga2

Belgorod4

Voronezh5

Tambov6

Penza8

Ryazan7

Chuvashia9

Kostroma10

Tatarstan11

GovernorRegional parliamentGovernor andregional parliament

No election

Russia’s regionalelections inSep 2020

ment cyber actors” who have attempted to steal as much as $2bn over the past five years. The group, dubbed the Bea-gleBoyz, targeted cash from ATMs in cyber attacks that have also left banks’ computer systems inoperable, the agen-cies said.

Experts stressed, however, that the fallout from the coronavirus pandemic on global economic activity would likely hit North Korea’s overseas business interests, which are predominantly in China, as well as North Korean workers in China and Russia.

“All these types of networks are hit less severely than other kinds of eco-nomic activity, but it doesn’t mean they are not shrinking,” said Andrei Lankov, at Kookmin University in Seoul.

Daniel Wertz, a programme manager

Kim Jong Un visits South Hamgyong, which was hit by typhoon Maysak

SEPTEMBER 10 2020 Section:World Time: 9/9/2020 - 18:19 User: john.conlon Page Name: WORLD2 USA, Part,Page,Edition: USA, 3, 1


released results yet but David Roberts, professor of haematology at Oxford uni-versity, which is running the biggest study in the UK, described plasma treat-ments as “incredibly valuable”.

So far, 25,000 people have donated their blood to Oxford university, and more than 360 are involved in the study,

Antibody therapies

Other research groups are using more advanced technologies to clone specific neutralising antibodies, which can then be injected into vulnerable groups to protect against the virus.

The therapy, known as monoclonal or “designer” antibody treatment, is one of the fastest-growing fields in biomedical

research, and is used widely in the treat-ment of cancer and autoimmune diseases.

“Vaccines usually take a few weeks to have an effect, whereas neutralising antibodies hit your bloodstream imme-diately,” said Dan Skovronsky, chief sci-entific officer at US pharmaceutical company Eli Lilly, which has been work-ing on the development of monoclonal antibody therapies for Covid-19.

Eli Lilly’s first antibody was isolated from a recovered patient who travelled to the US from China in February. “We found the best antibody we could possi-bly find,” Dr Skovronsky said.

There are at least 50 monoclonal anti-body therapies in clinical trials around

the world. Eli Lilly expects to have the first results from its trials this month.

The therapy could also be used to treat the early stages of infection but, as the disease progresses within a patient from a respiratory to an inflammatory illness, experts say treatment will need to shift towards drugs such as steroids.

One of the problems with monoclonal antibody treatments is cost. The median price in the US for a year’s treat-ment for diseases such as cancer ranges from $15,000 to $200,000, according to the Wellcome Trust, a British research charity. As a result, 80 per cent of such therapies are sold in the US, Europe and Canada.

“The number of people who would be able to receive them is very low com-pared to convalescent plasma,” said Alain Townsend, professor of molecular immunology at Oxford university, though he added: “I think that well cho-sen monoclonals are more likely to work.”

Cocktail treatments

Another challenge for such treatments is the capacity of the virus to mutate, changing its genetic make-up around the part known as the “spike”, which antibodies attack.

“I expect relatively quickly there will be mutations that develop in that region,” said David Stuart, professor of structural biology at Oxford university who is leading the UK’s Covid-19 research on antibody therapeutics.

The solution for doctors treating viruses such as Ebola has been to deploy a cocktail of neutralising antibodies rather than a single antibody. “Even if it escapes one, it would be hard to escape two,” said Prof Stuart.

Eli Lilly is experimenting with cock-tail therapies, along with companies including Celltrion and Immunoprecise Antibodies, even though for the treat-ment of influenza monoclonal antibod-ies in general have previously been found to have limited effect.

“In the face of difficult odds, knowing that most of the time we try we’ll fail, we still get excited,” said Eli Lilly’s Dr Skovronsky. If you have a 5 or 10 per cent chance of saving people’s lives, you’ll try it.”See Editorial Comment and Companies

Pandemic. Treatments

Plasma and antibody therapies on trial

Anna Gross — London

Nine months into the coronavirus pan-demic, scientists are conflicted about the use of convalescent plasma and anti-body therapies to battle Covid-19 while a fully tested vaccine remains under development.

The US Food and Drug Administra-tion last month awarded an emergency authorisation for the use of convales-cent plasma to treat coronavirus in hos-pital patients, only for a panel of experts convened by the US National Institutes of Health to hit back last week, citing insufficient evidence to support its use.

Convalescent plasma — the antibody-rich fluid left behind when all the cells are filtered out of blood — has been used successfully for more than a century as an emergency treatment in epidemics, from the 1918 Spanish flu through to the 2014-16 Ebola outbreak in west Africa.

First trialled in the 1890s by German scientist Emil von Behring to treat diph-theria, researchers took blood from ani-mals that had recovered from the dis-ease and injected it into infected humans. His first clinical tests showed a positive response in 77 per cent of cases.

But nearly 130 years later, no ran-domised controlled trial of the therapy — the gold standard for drug testing — has been completed and some scientists remain sceptical of its long-term use in the global fight against Covid-19.

One concern around the use of plasma is that it might contain other harmful ingredients to which patients would respond negatively. Others argue that it is very hard to create a reproducible product given that patients generate dif-ferent antibodies, at different concen-trations. “Is the juice worth the squeeze?” said Myron Cohen, professor of medicine, microbiology and immu-nology at the University of North Caro-lina. “Convalescent [plasma] is a bridg-ing mechanism before we have more targeted treatments,” he added.

Randomised controlled trials are under way around the world. None has

Methods have been used to

fight disease for decades but

some scientists are sceptical

Developing an antibody treatment

Graphic: Ian Bott Sources: AstraZeneca; FT research

Former patients who have recovered

Various laboratory techniques

Mice immunised against the virus’s ‘spike protein’ with which it enters a human cell

Antibodies are proteins produced by human cells that bind to viral structures and neutralise them

Be developed for mass-production in cell cultures

Neutralise the protein

Tests the antibodies’ ability to:

Immune replica technology: antibodies gathered from B-cells in blood

Hybridoma technology: antibodies produced from immortalised B-cells

Antibody sources

Production platforms

Screening

Testing, development, approval,manufacturing and distribution

Bind to thespike protein

W hen it was suggested to Alberto Fernández he might be predestined by the stars to rebuild from the ashes, Argentina’s presi-dent said he accepted his fate.

“If it is my destiny, let it be my destiny. What is important is that I build,” he said in a televised interview last month, recalling he first came to power as Néstor Kirchner’s cabinet chief in 2003, when Argentina emerged from an economic crisis. Courtesy of Covid-19, which started spreading three months after his election in December, there is a sense of déjà vu for the Argentine leader.

Mr Fernández has won applause for reaching a deal with creditors on the restructuring of $65bn of the country’s foreign debt in August. But that only represents a first step in the reconstruction of Argentina’s economy, which started spiralling down under his predecessor, Mauricio Macri, triggering a record $57bn IMF bailout in 2018.

Next comes a tough negotiation with the IMF to delay a punishing repayment schedule starting next year, in which the lender is to request a clear plan to reduce a fiscal deficit likely to reach 10 per cent this year. But such a condition may clash with the more radical factions of Mr Fernández’s ruling coalition.

Many commentators see the pragmatic leader as a tight-rope walker, straining to balance the demands of his Per-onist supporters. That has led to chaotic policymaking, startling announcements and U-turns. Critics take such moves as evidence of a radicalisation of Mr Fernández’s leftist government under the influence of his vice-presi-dent, Cristina Fernández de Kirchner, who was president from 2007-15.

Examples include att–empts to nationalise the country’s largest grains exporter; the freezing of telecoms tariffs by presi-dential decree; and bills being pushed through Congress such as a wealth tax and judicial reform that opponents say is an effort to secure immunity for Ms Fern-ández de Kirchner, who faces corruption charges.

“Every single initiative is portrayed as a radicalisation with evil motives, but it’s pure politics,” said Juan Cruz Díaz, managing director at Cefeidas Group, a risk consul-tancy in Buenos Aires, arguing that a united — albeit lead-erless — opposition is trying to exploit the real differences between Mr Fernández and his deputy. He needs to keep his coalition together to be competitive in midterm elec-tions next year and guarantee governability. Few people can dance with all those actors, and one of them is Alberto Fernández — so in general he is doing pretty well under the circumstances . . . [even if] things are pretty messy.”

Despite one of the strictest and longest lockdowns in the world, Mr Fernández’s approval ratings remain relatively high at about 60 per cent, although they have been gradu-ally falling from highs of more than 80 per cent in March when the pandemic first hit Argentina, according to Juan Germano at Isonomia, a local pollster.

But Covid-19 is proving a mightier opponent than diffi-cult political factions: Argentina’s ongoing lockdown, the longest and toughest in Latin America, has failed to pre-vent some of the highest daily deaths from coronavirus, while dealing a blow to the economy. Argentina is suffering the worst of both worlds: according to the country’s indus-trial union, production at 63 per cent of companies has either fallen more than half, or ceased altogether.

Mr Fernández’s success in reactivating the economy will be critical for his political survival. But María Esperanza Casullo, a political scientist at the National University of Río Negro, believes there will be no rupture in the uncom-fortable alliance between the two Fernándezes for now.

“It is in neither of their interests. Cristina has nothing to gain from a crisis in the government, which is not to say that there won’t be any tensions,” said Ms Casullo. “If the economy rebounds, and a vaccine appears, the govern-ment should do well next year. But those are big ifs.”

[email protected]

global insight

argentina

Benedict Mander

Pragmatic Fernández walks tightrope to keep Peronists on side

‘Every initiative is portrayed as a radicalisation with evil motives, but it’s pure politics’

INTERNATIONAL

Katrina Manson — Washington

The US will withdraw more than 2,000 US troops from Iraq this month, further-ing President Donald Trump’s long-held ambition to bring back US forces amid deep insecurity faced by American sol-diers in the country.

General Frank McKenzie, com-mander of the Centcom region in the Middle East and Afghanistan, said yes-terday the US had decided to reduce its troop presence from 5,200 to 3,000 troops this month.

“This decision is due to our confi-dence in the Iraqi security forces’ increased ability to operate independ-ently,” he said at a change-of-command

ceremony. “The US decision is a clear demonstration of our continued com-mitment to the ultimate goal, which is an Iraqi security force that is capable of preventing an Isis resurgence and of securing Iraq’s sovereignty without external assistance.”

Gen McKenzie said the reduced foot-print would allow the US to continue its support to Iraqi forces to root out “the final remnants of Isis in Iraq”.

The decision also reflects deep insecu-rity faced by US forces stationed at bases in Iraq, which have come under regular fire from Iran-backed militias this year in the wake of Mr Trump’s decision to kill top Iranian commander Qassem Soleimani at the start of the year.

Iraqi lawmakers voted for the with-drawal of US troops following the strike against Soleimani, which also killed a top Iraqi militia leader, Abu Mahdi al-Muhandis. US military commanders

redeployed some US troops from smaller bases that were difficult to pro-tect in March, following a series of rocket attacks blamed on Iran-backed militias, some of which were fatal.

Mr Trump upset Iraqi leaders in early 2019, when he hinted that the US wanted to retain its presence in Iraq “to be looking a little bit at Iran”, against which his administration has run an intense economic and diplomatic pres-sure campaign. But the US has been steadily handing control of military bases to Iraqi security forces this year, as the international anti-Isis mission has shrunk. Many partner countries pulled out their troops over coronavirus con-cerns this year. US secretary of state Mike Pompeo announced a strategic review in April.

“We are withdrawing from Iraq and losing focus from Isis partially because we’re under fire from Iranian-backed

militia,” said Brett McGurk, special presidential envoy for the global coali-tion against Isis who resigned at the end of 2018. “That was not happening at all until the end of last year. There were no Iranian-backed attacks on US forces from the time we went back in 2014 through late 2018.”

Mr Trump is seeking to reduce the US troop presence in Iraq and Afghanistan as he faces a battle for re-election in November, and his attitude to the mili-tary has recently become a matter of intense focus. In 2016, he campaigned on a promise to end the US involvement in “endless foreign wars” and on Mon-day he accused the Pentagon of wanting to “do nothing but fight wars so that all of those wonderful companies that make the bombs and make the planes and make everything else stay happy”. Additional reporting by Chloe Cornish in Beirut

Middle East

US to pull 2,000 troops out of IraqWithdrawal this month will leave 3,000 soldiers to support security forces

‘This decision is due to our confidence in the Iraqi security forces’

Jamie Smyth — Sydney Christian Shepherd — Beijing

Beijing has alleged the homes of Chi-nese journalists and academics were raided by Australia’s intelligence serv-ices, escalating a diplomatic row that culminated in two Australian reporters fleeing China this week.

The allegations, first reported by Chi-nese state media on Tuesday, claimed intelligence officers in June interrogated the unnamed reporters for several hours, while seizing computer equip-ment, mobile phones and documents. The officers told the journalists to keep the raids secret, Chinese reports claim.

“We have provided consular support to Chinese journalists in Australia and made representations with relevant Australian authorities to safeguard legitimate rights and interests of Chi-nese citizens,” a Chinese embassy spokesman said.

China’s foreign ministry said four Chi-nese journalists were questioned “with-out reasonable explanation” and demanded that “Australia immediately stop this savage and unreasonable behaviour”.

Australia’s Department of Home Affairs did not respond to a request for comment. The Australian Security Intelligence Organisation said it would not comment on intelligence matters.

The revelation came against a back-drop of deepening diplomatic tensions between Beijing and Canberra.

Bill Birtles, a correspondent for Aus-

tralia’s national broadcaster ABC, and Michael Smith, a journalist for the Aus-tralian Financial Review, were rushed out of China on Monday after they were questioned by security agents.

That followed the detention of Aus-tralian journalist Cheng Lei, who worked as a newsreader for state broad-caster China Global Television Network.

On Tuesday, China’s foreign ministry said Ms Cheng was “suspected of engag-ing in criminal activities endangering China's national security”, without elab-

orating. It added that the questioning of Mr Birtles and Mr Smith was conducted “according to law”.

A report by state-owned news agency Xinhua alleged that the June raid on the Chinese journalists was linked to an investigation by Australian intelligence of Shaoquett Moselmane, an opposition MP in New South Wales. Xinhua claimed Mr Moselmane was suspected of being a Chinese agent because he had “criticised Australia’s anti-China policies”.

In an interview with ABC in August, Mr Moselmane said police had asked him about a social media chat group that he was a member of that also included Chinese academics and foreign journalists. “There’s nothing sinister. But it’s been made to sound like some-thing covert,” Mr Moselmane said.

James Laurenceson, director of the Australia-China Relations Institute at University of Technology Sydney, said: “If Australia’s security agencies are raid-ing the property of Chinese journalists, that obviously raises the prospect of retaliation, as well as giving the Chinese government propaganda material to paint Australia as hypocritical.”

Diplomatic dispute

China claims Australia interrogated reporters

‘Australia [must] immediately stop this savage and unreasonable behaviour’

Nicolle Liu — Hong Kong

A Hong Kong high school student has been suspended after displaying a pro-test-related slogan in online classes, in the first case since Beijing imposed a draconian national security law on the city.

The teenage student at Heung To Mid-dle School displayed the phrase “Free Hong Kong, Revolution of Our Times” in an online profile picture and was sus-pended for a week, according to a Face-book post by a student group.

The school said the boy would be expelled if he was found to have partici-pated in so-called social movements again, the post added.

Hong Kong’s education bureau said the term was not an “ordinary political slogan” but carried subversive and sedi-tious meaning under the national secu-rity law.

The decision highlights how authori-ties are imposing stricter controls over the territory’s education system, which the Chinese government blamed for helping spur last year’s pro-democracy protests.

Beijing imposed the national security

law on the semi-autonomous territory in June, with critics arguing it has dis-proportionately limited individuals’ lib-erty and right to free expression.

Schools have come under particular scrutiny. A teacher at the Heung To Mid-dle School alleged her contract was not renewed because of her political views

and for not stopping a student from playing Glory to Hong Kong, the unoffi-cial anthem of the protest movement, in a music exam, according to local media.

Publishers have also been asked to review textbooks that include content critical of the Chinese government.

Wong Kwan-Yu, president of pro-establishment Hong Kong Federation of Education Workers, a teacher’s union, said the school was probably “making an example” of the student.

But Ip Kin-yuen, a member of Hong Kong’s Legislative Council, the city’s de

facto parliament, who represents the education sector, said the school’s deci-sion was harsh. “The education bureau has decided to strangle a student’s thoughts for greater control,” he said.

Teachers have said the recent inci-dents have created a difficult environ-ment in schools. Leo, a teacher who refused to give his full name for fear of repercussions, said he was worried and confused about “what could and couldn’t be said” in classes.

“I have to stop telling the reality I know to avoid violating some rules . . . The education system has become insincere, which creates distrust between teachers and students,” he said.

The Chinese government has long seen Hong Kong’s education system as a weak spot in its ability to exercise its authority. In recent months, professors involved in social movements have been dismissed, and authorities have warned teachers and students from joining in political activities and requested the scrapping of a controversial history examination question about the Japa-nese invasion of China during the sec-ond world war.

National security law

Hong Kong pupil suspended over protest sign

China has blamed Hong Kong’s education system for helping to spur pro-democracy protests

‘Vaccines usually take weeks to have an effect, whereas neutralising antibodies hit your bloodstream immediately’

SEPTEMBER 10 2020 Section:World Time: 9/9/2020 - 18:03 User: john.conlon Page Name: WORLD3 USA, Part,Page,Edition: USA, 4, 1


Claire Bushey — ChicagoPhilip Georgiadis — London

US and European airlines warned yes-terday of a grim outlook for the coming months, cutting back schedules as pas-sengers continue to avoid air travel during the pandemic.

Ryanair, Europe’s largest low-cost air-line, reduced its forecast for passengers it expects to carry in the fiscal year to March, as the carrier warned that this winter would be “a write-off”.

Finnair, Finland’s flagship airline, said it would operate no more than 80 flights daily in October compared with the 200 previously planned.

In the US, United Airlines said its capacity would fall 70 per cent com-pared with the third quarter of 2019. Earlier guidance was a fall of 65 per cent.

Revenue, too, will be lower than exec-utives had forecast: down 85 per cent from the $11.4bn a year earlier, not 83 per cent.

The cutbacks are part of a pattern in which airlines announce ambitious fly-ing schedules only to trim them as departure dates approach and passen-gers fail to materialise. Industry body Iata said airlines globally were projected to lose a record $84bn this year.

EasyJet cut its flight schedule earlier this week. Now Ryanair expects to carry 50m passengers in the 12 months to the end of March, down from the 60m pro-jected in July. It had forecast more than 150m passengers before the pandemic.

Michael O’Leary, Ryanair chief execu-tive, said the airline might cut more flights in the coming months.

The industry’s recovery hopes have been hit hard by rising coronavirus cases across Europe and parts of the US. It is pushing for testing on arrival at air-ports to help cut quarantine times and encourage people back into the sky.

Airlines are also adapting to an envi-ronment where business travel has been hit particularly hard by focusing on lei-sure travel and customers flying to see friends and family.

United said it would launch seven new long-haul routes from the US over the next year: two from mainland cities to Hawaii, and five connecting diaspora populations to India and Africa.

“We’re really focused on rethinking the network,” said Patrick Quayle, United’s vice-president of international network and alliances. “We’re not just looking at adding everything back prior to the way it was before coronavirus.”

Airlines cut flights after passengers fail to return

ment of a hedge fund is a bit crazy when he’s also the head of a huge company,” the person added.

The FT has spoken to several large institutional investors since revealing last week that SoftBank had fuelled a long rally in tech stocks by placing bil-lion-dollar bets on derivatives. The investors said that over the past few weeks — in some cases before the deriv-atives trades came to light — they had attempted to discover how the asset management unit was managed and, in particular, who was in charge of its day-to-day running. The investors said that despite those efforts, SoftBank had refused to disclose who was in charge beyond assuring them that Mr Son was closely involved.

SoftBank said it had confirmed only that Mr Son was a member of its invest-ment committee. It has not disclosed the other members of the committee, nor the date of the unit’s establishment. It declined to comment further.

The existence of the asset manage-ment unit was revealed to shareholders last month, while a regulatory filing in mid-August disclosed SoftBank had bought nearly $4bn in tech stocks including Amazon, Microsoft, Tesla and Google’s parent, Alphabet.

But people with direct knowledge of SoftBank’s trades say that over the past month, it has also snapped up $4bn worth of mostly call options — bets on further price gains — in some of those names, taking on options exposure with a notional value of $30bn.

Rajeev Misra, who heads SoftBank’s $100bn Vision Fund, and Akshay Naheta, a former Deutsche Bank trader, are closely involved, but Mr Son has driven the decisions behind the options trades, according to people with direct knowledge of the matter.

Shareholders in dark over huge SoftBank options trades3 No answers on who is calling shots3 Unease at $30bn exposure hits stock

Leo Lewis and Kana Inagaki — Tokyo Robert Smith and Katie Martin — London

SoftBank shareholders are calling on the conglomerate to reveal who is running the unit at the centre of its large US equity options trades, with nerves over an unexplained strategic shift stoking a 10 per cent decline in its share price.

Investors have unsuccessfully quizzed SoftBank — famed for big bets on unlisted tech start-ups — for details on its new asset management unit since founder Masayoshi Son disclosed it last month, according to people briefed on the discussions.

Now, the company’s aggressive foray

into US equity options, led by the Japa-nese billionaire and first reported by the Financial Times last week, has sown confusion about what this in-house hedge fund is doing, and how much risk it is willing to assume.

“Concern centres around the lack of information about the strategy that is going on behind this trading activity and also the wider question of who is in charge of these different activities,” said a person briefed on the views of one institutional shareholder.

The person said that, apart from the company’s huge stake in Chinese ecom-merce giant Alibaba, asset managers were generally not invested in SoftBank because they wanted exposure to listed stocks they could easily buy themselves.

“The idea that Son is taking a kind of personal interest in the micro manage-

‘The idea that Son is taking a personal interest in the micro management of a hedge fund is a bit crazy’

Mark Haefele The sharp rotation out of tech within the past week highlights the need to diversify y MARKETS INSIGHT

Anjli Raval — London

Middle East sovereign wealth funds including the Abu Dhabi Investment Authority and Saudi Arabia’s Public Investment Fund are in talks to buy stakes in Reliance Retail, the arm of Indian billionaire Mukesh Ambani’s empire that is seeking to raise $5.7bn by selling new shares.

Adia is in discussions over an invest-ment of $750m at a valuation of roughly $57bn, according to people familiar with the matter, while the PIF could funnel as much as $1.5bn into the entity controlled by Mr Ambani’s oil-to-telecoms conglomerate Reli-ance Industries. Mubadala may also take a stake.

Adia, Mubadala and PIF declined to comment. Reliance did not imme-diately respond to a request forcomment.

The new round of fundraising comes only weeks after Mr Ambani

secured $20bn in investments for his digital business, Jio Platforms, from 13 global investors. Some of those inves-tors were offered the first opportunity to invest in the retail business.

The flurry of deals for stakes in Reli-ance’s businesses began this year when Facebook invested $5.7bn in Jio. It has highlighted how global inves-tors see Mr Ambani’s conglomerate as their best way into the enormous Indian market at a time when rela-tions with China are souring.

KKR has also expressed interest in an investment, with one person famil-iar with the matter saying the private equity group could funnel up to $1.5bn. A second person, close to KKR, said it “is looking at it but it is still early”. Bloomberg first reported KKR’s interest.

US private equity group Silver Lake said yesterday it would invest $1bn in Reliance Retail, confirming talks first reported by the Financial Times.

Jio’s other investors include Google, which put in $4.5bn, along with pri-vate equity groups such as General Atlantic and Vista Equity Partners. The fundraising into Jio helped Reli-ance cut its net debt, which it had accumulated building the business, from more than $20bn to zero.

The latest investments are poised to help Reliance, which runs India’s larg-est bricks-and-mortar retail business, push into the country’s fast-growing market for online shopping and take on competitors such as Amazon and Walmart-owned Flipkart.

The new fundraising is to help grow the retail business, with investment in logistics and warehouses.

Through Jio and retail, Mr Ambani has sought to diversify from petro-chemicals into online and consumer-facing businesses. Additional reporting by Simeon Kerr,Benjamin Parkin, Henny Senderand Kaye Wiggins

India advance Middle East wealth funds enter talks to take stake in Ambani’s Reliance Retail

E urope’s top financial supervi-sor is fed up of waiting for big banks to prepare for Brexit. This is the message ECB offi-cials have given executives

this summer, while asking them for “action plans” to make their EU off-shoots “operationally self-standing in key areas” by the end of this year when the Brexit transition period ends.

But turning the screw has produced loud complaints. Some bankers pri-vately suspect it is a politically moti-vated way of pressing the UK as trade talks with the EU enter a crucial stage.

While the largest banks have been working on the issues since the UK voted to leave the EU, the ECB is still not persuaded that they have shifted enough people, assets and resources from London to eurozone offshoots to ready them for the post-Brexit world.

“Some banks have substantially reached their target operating model already or are well on track towardsthat target,” the ECB said. “There are other banks that still need to make progress, both in terms of relocating assets and staff. Our joint supervisory teams have engaged with these banksto make sure there is a shared under-standing of the path towards the target operating model.

“This is not about moving assets and staff alone. It is also about aiming to be

ECB supervisors turn the screw on banks over Brexit plans

all activities related to European prod-ucts or European customers should, as a general principle, be managed and con-trolled from entities located in the EU,” Yves Mersch, an ECB executive director and vice-chairman of its supervisory board, said in a blog over the summer.

ECB supervisors worry that some banks cling to uncertain scenarios that they hope will let them keep more oper-ations in the UK. These include count-ing on Brussels to grant the UK “equiva-lence”, a status that would open access to the bloc’s financial markets in some areas. But discussions have been bogged down in recriminations. Another involves a technique known as “back-to-back” operations that would allow insti-tutions to transfer the risk of EU deals across borders by carrying out a parallel transaction in the UK.

It would be too risky for banks to rely heavily on these options, according to Rachel Kent, head of financial services regulation at Hogan Lovells. “Equiva-lence has become politicised, so I don’t think banks are holding out for that.”

In the immediate aftermath of the Brexit vote, there were forecasts that London would lose tens of thousands of jobs. Lobby group Frankfurt Main Finance projected that the German financial hub would draw 10,000 bank-ers. But now it says only 1,500 jobs have been added, with a further 2,000 expected after the transition period.

What is now more worrying for the banks is that if the ECB gets its way, they will end up with overlapping European operations — in London and in the euro-zone — at a time when the fallout from the pandemic already threatens to make a big dent in their profits. If that happens, expect more cost-cutting on both sides of the Channel.

[email protected]

INSIDE BUSINESS

EUROPE

MartinArnold

structurally profitable, being operation-ally self-standing in key areas and most importantly not excessively reliant on back-to-back booking to the parent.”

The ECB is responsible for supervis-ing the 25 new or restructured banking operations that have applied for fresh authorisations because of Brexit, as well as 10 others that have increased the size of their eurozone-based operations.

Among these, the eurozone opera-tions of four banks — Goldman Sachs, JPMorgan Chase, Morgan Stanley and UBS — grew big enough to fall under direct supervision of the ECB last year. Others are supervised by both national regulators and the ECB.

A question for bankers has been whether their EU offshoots will be able to operate on a standalone basis after Brexit. The answer for many is that they still rely heavily on their parents for functions such as risk management or IT services. This is because for many years, banks centralised their European corpo-rate and investment banking activities in London. Almost half of all debt and equity issuance for non-financialinstitutions in the eurozone from2012 to 2018 was done from the UK. Financial services exports to the EU were worth £26.1bn in 2018, a fifth of UK services exports.

The tussle between the ECB and the banks will be vital in determining how much of this business leaves the City of London. ECB officials say banks have outlined plans to move more than €1.2tn of assets from the UK to their eurozone offshoots, quadrupling their size since the end of 2017.

“The ECB’s expectation is very clear:

Officials are not persuaded that enough people, assets and resources have been shifted from London to eurozone offshoots

Centre stage: Reliance is hoping to push into India’s fast-growing market for online shopping — Anindito Mukherjee/Bloomberg

SEPTEMBER 10 2020 Section:Companies Time: 9/9/2020 - 19:02 User: jeremy.wright Page Name: COMP&MKTS1, Part,Page,Edition: USA, 6, 1


SEPTEMBER 10 2020 Section:Ad Page Time: 9/9/2020 - 10:53 User: william.baxter Page Name: AD LONGINES2, Part,Page,Edition: LON, 7, 1


Mercedes Ruehl — Singapore

China’s largest technology and finan-cial services groups are stepping up efforts to expand in Singapore, as doors slamming shut on mainland groups in the US and India make the hub crucial for growth.

Alibaba-backed Ant Group; brokerage Haitong Securities; Huawei’s cloud arm; and Tencent-backed digital bank WeBank are among those that have in recent months approached Singapore industry groups about membership or partnerships.

The Investment Management Associ-ation of Singapore said it had seen such a surge in interest that it was setting up a China chapter to better support and attract mainland companies.

Singapore, which also markets itself as a technology centre in Asia, has long been a popular first choice for Chinese companies seeking a springboard to expand internationally. Its allure has

been heightened by restrictions on mainland groups in India and the US, and with Hong Kong increasingly sus-ceptible to Sino-US friction.

A number of Chinese apps including TikTok have been banned in the US and India in recent months on the grounds that they pose a threat to national secu-rity, while telecoms equipment maker Huawei is grappling with US sanctions.

“Singapore is benefiting from geopo-litical tensions,” said Chia Hock Lai, president of the Singapore Fintech Association. Membership had swelled from 350 groups in March to 780 as of September. “The worsening of the trade and geopolitical relationship [between Beijing and Washington] is actually accelerating the move and diverting investment out of China.”

For funds, a primary draw has been Singapore’s Variable Capital Companies regime, designed to lure assets of fund managers and family offices. Since Janu-ary, 109 VCC funds have been set up.

The Monetary Authority of Singapore and the Economic Development Board say they do not collect data on the number of Chinese financial or tech companies setting up shop in Singapore.

IMAS members must have a Singa-pore office, while SFA requires mem-bers to be registered in the city.

Carmen Wee, IMAS head, said an appeal for asset managers was the abil-ity to reach south-east Asia and its pop-ulation of 650m. “Given Singapore’s strategic position in south-east Asia, we have seen increased interest from Chi-nese asset management firms to estab-lish a presence,” Ms Wee said.

Mr Chia said Haitong was interested in identifying potential acquisition tar-gets, while Huawei, which has been in Singapore for almost 20 years, was focused on expanding its cloud comput-ing unit to provide companies with arti-ficial intelligence and cloud services. Ant Group is bidding for a digital bank-ing licence in the city-state.

Growth hub

Ant, Haitong and WeBank in Singapore pushCarola Long — London

Kim Jones has been named artistic director of women’s ready-to-wear, haute couture and fur collections at Italian fashion house Fendi, ending speculation over who would assume the role held by the late Karl Lagerfeld.

Silvia Venturini Fendi, granddaughter of the company’s founders who has been acting as sole creative director since Lagerfeld’s death in February 2019, will continue to design the LVMH-owned brand’s accessories and menswear.

Mr Jones will continue his role as artistic director of menswear at Dior, which is also owned by LVMH. It is not unusual for designers to hold more than one position, but more often this com-bines a role at a big brand and a designer’s own label than across two major houses. Mr Jones follows in the footsteps of Lagerfeld, who was creative director of Chanel and his own label while working for Fendi.

Mr Jones has carved out a reputation for blending streetwear, pop culture and tailoring, and creating a marketing buzz around his products.

Analysts expect Mr Jones to try to bring that same cool and commercial flair to Fendi’s womenswear. While the house is well known for its handbags, its clothing does not set trends in the same way that rivals such as Gucci do.

LVMH became the majority share-holder in Fendi in 2001, after buying the Prada Group’s 25.5 per cent stake, and later increased its own holding.

Bernard Arnault, chairman and chief executive of LVMH, said: “Kim Jones is a great talent, and since joining, he has continuously proven his ability to adapt to the codes and heritage of the LVMH houses while revisiting them with great modernity and audacity.

“At Fendi, I am convinced that his vision and passion will highly contrib-ute to the success of the women’scollections.”

Retail & consumer

Jones wins Lagerfeld’s design role at Fendi

The former Volkswagen executive said in the memo, first reported by Reu-ters, that PSA “was almost bankrupt five years ago” before being turned round by former chief Carlos Tavares.

“The goal is to get back on track and solve our problems as quickly as possi-ble: treasury and costs. That means that we might have to go further than planned in the effort to reduce costs.”

Renault has already unveiled a three-year, €2bn cost-cutting initiative in May that will involve shedding 15,000 jobs.

It scaled back its ambitions pushed by former boss Carlos Ghosn, cutting pro-duction capacity from 4m vehicles in 2019 to 3.3m by 2024.

The pandemic has hit Renault hard,

ucts would need to be cut back byabout 30 per cent and that he wasn’t “afraid to envision” an increase in aver-age prices of 25 per cent to 30 per cent for smaller cars.

It is not the first time Mr de Meo has underlined the depth of the challenge at Renault, ahead of unveiling a detailed strategy in January of next year.

Analysts expressed cautiousoptimism.

“We have the proof that turnrounds in EU mass-market car businesses are do-able,” said Arndt Ellinghorst at Bern-stein in a note to clients.

“Sadly, there is one key fundamental difference. The French govern-ment . . . is getting involved in Renault

David Keohane — Paris

Renault’s new chief executive warned that the carmaker might have to make deeper cost cuts than planned to get out of the “red zone” as he tries to copy the strategy of French rival PSA.

Luca de Meo, who took over at Renault in July, said that the carmaker’s cash projections were “alarming” and that it needed to model itself on PSA, which owns Peugeot, in an internal memo seen by the Financial Times.

De Meo calls projections ‘alarming’ and praises rival PSA’s strategy

Thomas Hale — Hong KongSiobhan Riding — LondonWang Xueqiao — Shanghai

Some of the most powerful financial institutions on Wall Street are stepping up efforts to strike deals in China, as Bei-jing takes steps towards the liberalisa-tion of its vast but heavily protected capital markets.

Last month BlackRock, the world’s biggest asset manager, received approval for a partnership with a state-owned bank in China. Days later, Van-guard said it would relocate its regional headquarters to Shanghai, while Citi-group became the first US bank to receive a fund custody licence in the country. Details also emerged of JPMor-gan Chase’s plan to buy out its local part-ner in a Chinese funds business.

Behind the bluster of US-China ten-sions in the lead-up to November presi-dential elections, the two countries are edging closer in financial services.

“Everywhere you look [in China], there’s a lot of money, and where else in the world is there an opportunity like this to go and get that sort of money for management?” said Stewart Aldcroft, Asia chairman of Cititrust, a Citigroup unit. “There isn’t anywhere, frankly”.

The recent wave of activity has focused mainly on the fund manage-ment industry — part of a broader range of services that were deemed to present an opportunity for “co-operation and mutual benefit” in the US-China phase I trade deal published in January.

Chinese reforms that came into force this year mean that foreign companies can for the first time fully own their own businesses in the rapidly growing mutual fund sector. According to Deloitte, publicly registered funds could hold assets of $3.4tn by 2023.

Casey Quirk, a consultancy, estimates that China will overtake the UK as the second-largest funds market by 2023.

“We knew China’s intention was to open up the market, and the reason they were doing that is not because they were being magnanimous,” said Peter Alex-ander, founder of Z-Ben Advisors, a Shanghai-based consultancy. Rather, he said, China wants to benefit from US “best practice.”

Mr Aldcroft cites a visit six years ago by senior officials at the China Securities Regulatory Commission to Citi and the SFC, Hong Kong’s securities regulator.

BlackRock, Citi, Vanguard

and JPMorgan benefit from

Beijing’s liberalisation drive

Foreign firms’ interest is not limited to selling mutual funds.

BlackRock recently received the right to wholly own its own mutual fund busi-ness, but its new partnership with China Construction Bank and Singapore’s Temasek will also allow it play a role in the country’s wealth management mar-ket, which is dominated by domestic banks.

China this month approved Citi as the first bank offering custodian serv-ices such as record-keeping, trade set-tlement and income processing.

In March, Morgan Stanley received approval to take majority ownership of its China securities joint venture. JPMorgan was recently permitted to become the first foreign bank to fully own a futures business in China, on top of taking control of its Chinese mutual fund business through its asset manage-ment arm.

Jamie Dimon, the bank’s chairman and chief executive, said in a Bloomberg

“They see the competition foreign firms can bring to be a very healthy develop-ment,” he said.

China’s mutual fund industry is still in its infancy. Goldman Sachs estimates that just 7 per cent of the country’s household assets are in equities and mutual funds, compared with 32 per cent in the US. Two-thirds of Chinese households’ assets are in property, and nearly a fifth is in cash and deposits.

Chinese stock markets are also wracked by volatility — an issue over which official state media has expressed concern this year, as indices have rallied sharply. Wild swings in prices have fanned fears among ordinary investors that the market can be treacherous.

“For us who don’t have professional financial knowledge, it’s hard to gain,” said Shen Jiahong, a retail investor in Shanghai. Rather than buying individ-ual stocks, she mainly buys mutual funds, which she assesses based on rankings on WeChat.

Flag-flying: despite US-China tensions, the two countries are edging closer in financial services — FT montage

‘Where else in the world is there an opportunity like this to go and get that sort of money?’

compounding existing issues, including its relationship with partner Nissan.

The French group fell to a record €7.3bn loss in the first half of the year. Its

share price has fallen almost 40 per cent so far this year.

“In the next five years, we are going to do what PSA has done in the last five years,” said Mr de Meo.

He said that Renault’s range of prod-

‘In the next five years, we are going to do what PSA has done in the last five years’

Mr Jones said that “working across two such prestigious houses is a true honour as a designer”.

Mr Jones was born in London and studied fashion at Central Saint Martins. He became creative director of Richem-ont’s Dunhill in 2008. From 2011 to 2018, he was men’s artistic director at Louis Vuitton, the largest brand in the LVMH stable.

The appointment at Fendi is his first womenswear role.

Kim Jones will stay in his position as an artistic director at Dior

COMPANIES & MARKETS

whilst it leaves PSA to its own devic-es despite owning a 12.2 per centstake.”

Paris, which has backed a €5bncredit line from banks to the company to get it through the pandemic, is Renault’s largest shareholder, just ahead of Nissan.

Despite the turmoil in the remodelled alliance with Nissan in recent years, par-ticularly after the arrest of Mr Ghosn in late 2018, Mr de Meo is backing the part-nership.

“If we separate . . . we would send ourselves straight to the second division in the automotive championship. So I am determined to do everything to make sure it succeeds.”

Renault boss signals deeper cost cuts

interview in Beijing in 2018 that his company was “building here for 100 years”. He said: “One day you’ll proba-bly have a tower here that looks like the tower we have in New York.”

Taking market share may not be easy. Hugh Young, head of Asia for Standard Life Aberdeen, said that international asset managers are up against some “entrenched” domestic competitors.

He added that many foreign firmsare trying to cement their presence in the market in order to benefit from an eventual liberalisation of capital flows, when Chinese authorities relax controls on the amounts of money households and companies are allowed to move overseas.

Mr Alexander agreed that to “runChinese money globally” is the “holy grail” for foreign firms — but that Bei-jing will not allow them to dominate in that process.

“The Chinese are going to go out and buy someone,” he said.

Anna Gross — London

Two UK groups will today launch rapid saliva-based tests for Covid-19 amid growing calls for more testing capacity in Britain as employees head back to offices and pupils return to school.

Tech company iAbra has developed a test that uses a mouth swab to extract saliva, which uses a computer to iden-tify the virus.

The results were delivered in 20 sec-onds, the company said.

The test has been trialled at Heathrow airport, which is one of the group’s first customers. A division of US defence company Lockheed Martin is another, and iAbra said it was in talks with other multinationals.

The company said the cost of the machine that processed the data was under $20,000, with each kit equivalent to “roughly the price of a paperback book”.

“Testing for Covid-19 is the lifeline that the UK economy needs to getback on its feet,” said John Holland Kaye, Heathrow chief executive,adding that iAbra’s test was “quicker, cheaper and potentially more accurate” than the government’s conventional swab test.

“We urge the government to fast-track this technology to protect the economy and help save millions of jobs in this country,” he added.

As more employees return to work

and students to universities, epidemiol-ogists have underscored the need for robust and widescale testing to screen for infection and prevent local out-breaks.

While the government undertakes large trials of several rapid Covid-19 tests, some companies have swept in to meet private demand for scalable test-ing systems that do not require profes-sional medical administration.

British biotech company Halo will launch a saliva test which it says pro-vides results within 24 hours. Clients can take the test at home by spitting into a tube and sending the sample off for processing at the company’s lab at Imperial College London.

The group’s first customer is Exeter University, which has bought tens of thousands of tests, and Halo said it was in talks with an unidentified hedge fund and airline.

“Saliva is much less intrusive, has a lower impact on the environment, and is less labour-intensive than other tests,” said Jonathan Biles, Halo’s chief executive.

“Our tests are very, very sensitive. We think we’ve got something that’s game-changing.”

Mr Biles said the test, which purifies the genetic material from saliva and uses polymerase chain reaction (PCR) to detect the virus in a lab, is close to100 per cent accurate.

iAbra’s Virolens test uses a digital camera attached to a microscope to ana-lyse saliva samples, with the data then run through a computer. Each digital camera machine could process several hundred tests per day, the company said.

Studies conducted by the University of Bristol found that the test had99.8 per cent sensitivity, identifying all real cases and avoiding false negatives.

Saliva-based virus tests launched by UK groups

Financials. Market reform

Wall Street strives for star performance in China

‘We urge the government to fast-track this tech to protect the economy and help save millions of jobs’

Automobiles Healthcare

SEPTEMBER 10 2020 Section:Companies Time: 9/9/2020 - 18:54 User: jon.wright Page Name: CONEWS1, Part,Page,Edition: USA, 8, 1


SEPTEMBER 10 2020 Section:Ad Page Time: 9/9/2020 - 10:53 User: william.baxter Page Name: AD BANCA IMI, Part,Page,Edition: LON, 9, 1


said: “When we say we are going to focus on safety and make no compromises, here is exhibit A.”

If the trial participant’s illness is “a real consequence of this vaccine and can be shown to be cause and effect, then all the doses that are currently being man-ufactured for that will be thrown away. We do not want to manufacture some-thing that is not safe,” he said.

Dan Mahony, co-head of healthcare at fund manager Polar Capital, said the bar for administration of a vaccine can be higher than for other pharmaceuticals, because they are almost always given to people who are otherwise well.

The difficulty for vaccine makers is that even clinical trials involving 30,000 people — such as AstraZeneca’s current phase 3 trial — may not pick up rare, but potentially devastating, reactions.

Mr Mahony said regulators were always wary of reactions that studies such as AstraZeneca’s would not neces-sarily pick up. He added: “These are big studies but it is still difficult to pick up those rare events. But one in 100,000

[adverse events] is still pretty impor-tant if you are going to be vaccinating up to a billion people.”

It was that possibility that was behind AstraZeneca’s decision voluntarily to pause the trial, he said.

Scientists emphasised that pauses are routine in drug development. Jeremy Farrar, director of the Wellcome Trust, said: “It’s very unusual to go through a vaccine trial and not to have to pause it.”

The condition that led the trial to be paused is transverse myelitis, an inflam-mation of the spinal cord that has a known, but very rare, association with vaccination.

Stephen Evans, Professor of Pharma-coepidemiology at the London School of Hygiene & Tropical Medicine, warned against assuming a link between the participant’s illness and the vaccine.

“When large numbers of people are included in trials, coincidental events can occur and when they are unex-pected, then an investigation is required to see if they are just coincidence or a result of the vaccine,” he said.

Analysts and investors largely reacted calmly to the news. Peter Welford at Jef-feries said temporary pauses were “standard clinical trial practice”.

He and his team envisaged “a short-term stock correction which may prove misplaced”, he added.

Describing the muted market reac-tion — shares closed fractionally higher at almost £84 — as “sensible”, Mr Mahony argued the fate of the vaccine was unconnected to the company’s broader prospects of success. Astra-Zeneca has committed to make no profit from the drug during the course of the pandemic.

He said: “I don’t think this vaccine has ever been a financial driver for them. It is more a factor of being a good corpo-rate citizen.”

AstraZeneca’s status as one of the fast-est growing pharma companies in the world stemmed instead from its oncol-ogy business, he added.

“This is a company on the up and they have stepped in to do something on Covid from a position of strength.”

AstraZeneca has committed to make no profit from the drug during the pandemic — David Parker/ANL/Rex/Shutterstock

AstraZeneca shares have risen on a potential Covid-19 vaccineShare price (£)

Sources: Refinitiv; MHRA; PwC

60

70

80

90

100

Jan 2020 Sep

Medical trials in the UK have remained flatNumber of interventional trials of investigational medicinal products

0

200

400

600

800

1,000

1,200

2010 15 19

Germany’s BioNTech, and the company’s US partner Pfizer, are negotiating a contract with the EU to supply at least 200m doses of their Covid-19 vaccine candidate.

If an agreement is reached, deliveries could begin by the end of 2020, the companies said, if the product is approved by regulators.

The EU will have the option to buy a further 100m doses of the vaccine, which uses mRNA technology, and is likesly to require two shots per person immunised.

The Mainz-based biotech group, which says it will be able to manufacture 1.3bn doses of its vaccine by the end of 2021, will earmark 30m doses for the UK. Joe Miller

EU negotiationsBioNTech and Pfizer in talks over 200m doses

Sarah Neville, Clive Cookson and Kiran Stacey

When AstraZeneca confirmed on Tues-day evening that it had temporarily halted trials of its coronavirus vaccine, the news disconcerted millions around the globe counting on a jab as a route back to normal life.

The pharma group’s measured state-ment sought to dispel any suggestion that the race to develop a vaccine — the candidate it is developing in partnership with Oxford university is considered a frontrunner — had encountered signifi-cant problems.

Pascal Soriot, AstraZeneca’s chief executive, cast the decision as proof of his company’s adherence to “science, safety and the interests of society”. The pause showed that the company would follow those principles, he said, as a sus-pected serious adverse reaction suffered by a UK trial participant was assessed by a committee of independent experts.

But the incident has served as a reminder that the industry is trying to pull off an unprecedented feat: aiming to beat, by years, the previous fastest development of a vaccine. That record is held by the mumps vaccine, which took four years to bring to market.

Despite the anticipation of a vaccine that will arrive and free people from lockdown, history demonstrates there are no guarantees. Overall, vaccines for infectious diseases have about a 33.4 per cent success rate after entering human trials, although this rises to 85 per cent for those that reach phase 3 trials.

There has been an extraordinary sci-entific effort devoted to finding a vac-cine that will prevent Covid-19 or at least lessen the symptoms. The Oxford-AstraZeneca candidate is one of five in trials that use the weakened form of a common type of virus known as adeno-viruses. The modified adenovirus deliv-ers instructions for human cells to make proteins on Sars-Cov-2, the coronavirus that causes the disease. Another type of vaccine uses RNA, a molecule contain-ing genetic instructions to make viral proteins that is inserted in human cells. US biotech Moderna and the partner-ship between Pfizer and BioNTech are taking this approach and, along with the Oxford/AstraZeneca candidate, are considered among the most advanced.

The pause in the AstraZeneca trial comes as politicians have encouraged the narrative that a vaccine will arrive at “warp speed”, to quote the name of Don-ald Trump’s vaccine project.

Earlier this week Matt Hancock, the UK health secretary, held out hope that the Oxford one could even win regula-tory approval before the end of the year, although he suggested the early part of 2021 was more likely.

Some experts believe the announce-ment of the pause will be a useful reality check, emphasising that safety is para-mount. Referring to it at a Senate hear-ing yesterday Francis Collins, the head of the US National Institutes of Health,

AstraZeneca’s trial pause injects dose of reality into race for coronavirus vaccinePharma group’s safety move comes as reminder that sector is aiming for unprecedented success

‘One in 100,000 [adverse events] is pretty important if you are going to be vaccinating 1bn people’

Derek Brower — US Energy Editor

Husky Energy, the Canadian groupcontrolled by Li Ka-shing, said yester-day it might scrap an Atlantic offshore crude project, putting pressure on the government to bail out another oil development.

The announcement follows weeks of negotiations between investors in West White Rose, including Calgary-based Suncor Energy, and authorities about the possibility of the federal or provin-cial government buying a stake in the project.

Seamus O’Regan, Canada’s federal natural resources minister, said his gov-ernment and officials in Newfoundland were “hammering out the concrete steps needed to support the offshore”.

The West White Rose project, in one of Canada’s poorest regions, would add 75,000 barrels a day of production and generate C$3bn (US$2.3bn) in royalties while supporting thousands of jobs, Husky said.

The project, 350km off Newfound-land, is 60 per cent complete and was scheduled to start producing oil in 2022. Husky said capital and operating invest-ment would have amounted to C$11bn.

The company suspended it in March amid an oil price crash triggered by the pandemic and the Saudi-Russian mar-ket share war.

“Unfortunately the delay caused by Covid-19 and continued market uncer-

tainty leave us no choice but to under-take a full review of the project and, by extension, our future operations in Atlantic Canada,” said Rob Peabody, chief executive of Husky.

The move is the latest blow to eastern Canada’s oil sector, after local authori-ties forced Suncor to halt operations at another field offshore Newfoundland late last year.

Cancellation of the West White Rose expansion could shorten the life of the original White Rose project, which is in terminal decline.

Four eastern Canadian offshore projects produced about 260,000 b/d in 2019, according to the Canadian Associ-ation of Petroleum Producers. The oil industry accounted for about a quarter of Newfoundland’s gross domestic prod-uct between 1997 and 2017, Capp said.

Andrew Parsons, Newfoundland’s energy minister, said a Husky with-drawal would be devastating for the local economy. “We’re talking about thousands of jobs in a province of half a million people. You can’t overstate the importance.”

He said Newfoundland would “do what it can” to find a way of keeping Husky but could not afford to buy an equity stake on its own. “Everybody is quite aware of our fiscal capacity, and how we just don’t have the ability to assume an equity investment like is being asked . . . The federal govern-ment plays a huge role in this.”

Oil & gas

Husky considers scrapping Canadian offshore project

Chris Flood

Assets held by exchange traded funds have reached $7tn for the first time, boosted by emergency public spending measures that helped drive a rebound in markets.

Governments have announced $20tn of stimulus measures in response to the pandemic, slashing interest rates and expanding bond-buying.

Aggressive steps by policymakers have encouraged investors to plough $428bn in new cash into ETFs so far this year, up 57 per cent compared with the same period last year, according to ETFGI, a London-based consultancy.

Assets held in ETFs (funds and prod-ucts) reached a record $7tn at theend of August just before the USstock market reached an all-time high and before this week’s correction in technology stocks.

“The ETF industry has registered pos-itive investor net inflows for the past 15 months, even during February and March of this year when equity markets were in retreat as a result of worries about the economic impact from the spread of coronavirus,” said Deborah Fuhr, founder of ETFGI.

Sceptics who had projected that the violent correction would mark an end to the rapid expansion of the ETF industry were proved wrong, Ms Fuhr said.

ETF sentiment has been strengthened by the Federal Reserve’s decision this

year to use fixed income ETFs to help stabilise the bond market, an unprece-dented vote of confidence from the US central bank.

ETFs were regarded as an insignifi-cant niche before the financial crisis. But the failure of most traditional active managers to avoid brutal losses led many investors to seek less volatile strategies.

ETF providers have drawn $4.3tn in net new cash since the start of 2009. BlackRock and Vanguard have devel-oped into the two largest asset managers over the past decade by aggressively expanding their ETF units.

BlackRock’s iShares ETF arm has gathered net inflows of $98.6bn so far this year. Pennsylvania-based Vanguard is ahead in this year’s race for investors’ cash after attracting ETF inflows of just under $115bn.

Their competitors trail far behind but nine of the top 10 ranked ETF providers have seen new business growth increase this year. UBS and New York-based Wis-domTree are the only two top-20 ranked ETF managers to have regis-tered net outflows this year.

Strong buying via ETFs has also helped push the price of gold to a record above $2,000 in August. Investors have spent $51.2bn buying gold ETFs so far this year, pushing the asset value of these vehicles to $241bn, according to the World Gold Council, the trade body representing bullion mining companies.

Financials

Pandemic stimulus lifts ETF assets to $7tn for first time

Neil HumeNatural Resources Editor

Rio Tinto chief executive Jean-Sébastien Jacques has held talks with the indige-nous owners of the ancient Aboriginal site that the mining group blew up ear-lier this year, as the company’s board prepares to debate his future.

The Puutu Kunti Kurrama and Pinikura Aboriginal Corporation said it had held discussions with senior Rio executives “to share our feelings and attempt to establish a way forward to repair, rebuild and grow our relation-ship”.

The meeting comes amid mounting pressure for Rio to respond more strongly to the blasts that led to the destruction of two 46,000 year old rock shelters in Western Australia just over three months ago.

The state is home to Rio’s flagship iron ore operations, which accounted for more than 90 per cent of the earnings generated by the $105bn company in the first half of the year.

Rio’s board was to meet yesterday to discuss further sanctions for the blasts, including whether Mr Jacques and Chris Salisbury, head of iron ore, and Simone Niven, head of corporate relations, should keep their jobs.

Rio last month cut £4m from their bonuses after a board-led review found they bore “partial responsibility” for the failings that led to the destruction of the

site to make way for the expansion of an iron ore mine.

Investors have called for Rio to recon-sider the decision to impose only finan-cial sanctions. Yesterday, the Church of England said it had asked the Rio board to “reflect” on whether the penalties were adequate.

“It’s very much a test for the board of how seriously they respond to this,” Adam Matthews, head of ethics and engagement at the Church’s pension

board, told the BBC. “Its clear that investors do not feel the measures they have currently outlined are sufficient.”

Rio secured approval from Western Australia’s state government to destroy the rock shelters in 2013 as part of the expansion of its Brockman 4 mine.

However, the company faced criti-cism for not altering its expansion plan after archaeological digs found the site had the potential to “radically change” the understanding of the “earliest human behaviour in Australia”.

Mr Jacques told a parliamentary inquiry he was not aware of the cultural significance of the rock shelters until they were blown up on May 24.

Mining

Rio meets indigenous leaders over Australia cave blasts

Jean-Sébastien Jacques, CEO, engaged in talks with owners of the site that Rio blew up earlier this year

COMPANIES & MARKETS

Richard MilneNordic and Baltic Correspondent

Orsted, the world’s biggest offshore wind developer, has chosen a former Lego marketing boss who is one ofDenmark’s leading corporate advo-cates of sustainability as its next chief executive.

Mads Nipper, chief executive of the world’s largest pump manufacturer Grundfos, will take over from Henrik Poulsen at Orsted at the start of next year.

Mr Poulsen transformed the former Dong Energy from a Danish state-controlled oil, gas and utility group to a world-leading wind power developer that wants to become the first “green supermajor” within five years, challeng-ing energy companies such as BP and Royal Dutch Shell.

“The challenge we face in transform-ing the world’s energy systems from fos-sil fuels to renewable energy to avoid the catastrophic consequences of climate change is more pressing than ever and requires action in all parts of society,” said Mr Nipper, who added that Orsted was in a “unique position to make a dif-ference in the fight against climate change”.

A fan of rock band AC/DC and Liver-pool Football Club, the incoming Orsted CEO shot to prominence as one of the driving forces behind the resurrection of Lego after the Danish toymaker’s brush with financial collapse in 2003.

Mr Nipper, who spent more than two decades at Lego, rising to the post of chief marketing officer, insisted that the toymaker needed to refocus on its core audience of six- to nine-year-old boys and pushed the launch of a classic fire engine in 2004 as it started its journey to become the world’s largest toymaker.

He turned Grundfos round after tak-ing over as chief executive in 2014 when the pump manufacturer was suffering from falling profits. In recent years he has been vocal in his support for sus-tainability goals.

“Anchored in a clear sustainability vision, Mads has led a highly successful transformation of Grundfos over the past six years that has reinforced the company’s position in an increasingly competitive market, while also strengthening financial performance,” said Thomas Andersen, Orsted chair-man.

Mr Poulsen, another former Lego executive who in June announced his decision to step down after eight years as chief executive, will act as an adviser to Mr Nipper in his first month at Orsted and has yet to announce his next move. He has been linked with various promi-nent Nordic chief executive roles in recent years after his work in trans-forming Orsted and bringing it to the stock market.

It became the first fossil fuel producer to ditch its traditional business, moving into offshore wind as it became increas-ingly competitive on price.

Energy

Former Lego executive Nipper picked as Orsted CEO

SEPTEMBER 10 2020 Section:Companies Time: 9/9/2020 - 18:59 User: jon.wright Page Name: CONEWS2, Part,Page,Edition: EUR, 10, 1


COMPANIES & MARKETS

Anjli Raval, Derek Brower and David Sheppard — London

Saudi Arabia plans to keep oil produc-tion steady despite a recent slump in prices, fearing any bigger output cuts would lead rivals in Opec to increase supply.

Five people briefed on Saudi Arabia’s thinking said Brent crude’s more than 10 per cent slide in the past week, dip-ping below $40 a barrel on Tuesday, was causing concern but not yet panic in Riyadh. The kingdom has led Opec and other producers such as Russia, known together as Opec+, in slashing output in the face of the coronavirus pandemic.

The country fears that if it cuts more output to support prices, other coun-tries will take advantage and produce greater amounts, jeopardising the unity of the Opec+ group that enacted record supply cuts in April as demand col-lapsed.

“[Saudi Arabia] is not seeing much of a concern yet”, said one of these people, who added there was not a need for a “bigger cut” at this point. “All the issues we see today are about sentiment.”

Traders are growing increasingly anx-

ious about the pandemic’s longer-last-ing impact on oil consumption, while reported production from certain Opec countries such as the UAE, Iraq and Nigeria in recent months has been higher than stipulated under the Opec+ deal.

Saudi Arabia believes that the market sell-off in recent days has been exacer-bated by the turmoil in equity markets and the strengthening of the US dollar, said several people.

Brent crude oil recovered from below

via ED&F Man’s treasury management arm, which handles the parent group’s relationships with banks, raises debt and manages its cash.

If the company had been forced into insolvency proceedings, creditors would have received between 19p and 28p for every pound they were owed, according to forecasts from the com-pany and analysis from FTI Consulting.

In approving the scheme yesterday, Mr Justice Meade noted that the com-pany was in “severe danger” of going bust if the scheme were not put in place. “It is very cogent the scheme will pro-vide a better chance for creditors.”

ED&F Man said the judgment was an “important milestone” for the com-pany’s staff, creditors, clients, custom-ers and suppliers.

“This will create a stable financial environment for the group for the next three years and allow ED&F Man to pur-sue its strategy of focusing on its core trading roots and divesting of non-core assets in an orderly manner to ensure value is maximised,” it said.

ED&F Man’s roots go back to 1783 when James Man founded a barrel maker and sugar brokerage in London.

$20 a barrel in April to a six-month high near $46 a barrel in August, as the cuts took effect and demand picked up after government lockdowns eased.

But signs of renewed demand weak-ness in the US and India, and slower crude imports by China, have combined with a rise in coronavirus cases else-where to spark fears that the oil mar-ket’s recovery has stalled.

Global oil demand is still down almost 10 per cent year on year, as many econo-mies are mired in recession and car and airline travel remain depressed.

Saudi Arabia agreed a US-backed deal in April with global producers to slice 9.7m barrels a day off global supply. They tapered the cuts in August to 7.7m b/d, or about 8 per cent of demand.

Iraq, Nigeria and the UAE have said they will compensate for their earlier overproduction by cutting additional barrels in the coming months. Saudi Arabia does not want to undermine these undertakings by backing further cuts at this stage, according to people briefed on the matter.

Brent had recovered some ground to trade at $40.75 per barrel by late after-noon yesterday in London.

Commodities

Saudi Arabia aims to keep pumping at steady rate despite slide in crude prices

Philip Stafford — London

ED&F Man, one of London’s oldest commodities brokers, has restruc-tured nearly $1.5bn of debt and raised an extra $320m in working capital from lenders, staving off a funding crunch.

Yesterday, a judge at the English High Court approved the company’s plan to switch its debt, held in credit facilities that mature in the next two weeks, into new secured loans and notes that come due over the next three years.

The changes will be made through a scheme of arrangement. The broker’s 28 creditors and note holders, including the Netherlands’ Rabobank, approved the deal at a meeting last week.

The restructuring heads off fears that the broker was on the way to insolvency. ED&F Man told the court it would be unable to pay its creditors when several facilities matured over the seven days to September 22.

The group, which acts as a middleman in global commodities markets, had steadily drawn down its facilities in recent years to support its trading, while trying to raise cash by selling off some

Commodities

English court approves ED&F Man debt restructuring in eleventh-hour rescue

assets and shareholdings. It blamed the coronavirus outbreak for ending any potential interest in its assets and had also been unable to find a larger partner to provide financial backing. A High Court judge noted in August that “its financial position has worsened consid-erably as a result of the pandemic”.

Other small, independent commodi-ties brokers have also had a roller-

coaster year as prices in the markets they trade, such as crude oil, have swung wildly. Meanwhile, lower interest rates have cut the profits the industry makes from holding customers’ money.

The company acts as a broker for both institutional and retail investors. The company holds around $2bn of funds backing customers’ trades, according to data from the CFTC, the US market reg-ulator.

The application to the court was made

‘This will create a stable financial environment for the group for the next three years’

Riyadh fears Opec+ peers will boost their own production if it makes cuts

boosted by the closure of jewellery shops during the lockdown, forcingpeople who might otherwise preferbuying physical gold to considerequities, which tumbled to three-year lows in March before mounting a rapid recovery.

Zerodha has 3m customers and is adding about 200,000 a month, more than doubling its rate of growth before the pandemic. The average age of its customers is 28.

“Stock markets had this whole ‘Fomo’ feeling,” he said, alluding to investors’ fear of missing out.

ICICI Securities, which has also recorded strong growth in accounts and a sharp increase in average dailyturnover, last month announced apartnership with US-based Interactive Brokers to allow its customers to invest in US markets.

Vijay Chandok, ICICI’s chief execu-tive, attributes some of the risinginterest in do-it-yourself trading to a general dissatisfaction with investing through mutual funds.

India’s mutual fund industry has expanded rapidly in recent years but flows into equity-based funds have slowed since March.

“This narrative that the performance of the [mutual fund] industry had been fairly tepid had seeped into the minds of investors,” he said. “When the market crashed . . . that in a sense was the last straw. [Investors] set themselves on a path of directly investing into equity markets.”

Brokerages say mid-cap companies have proved particularly popular among this emerging class of retail investors.

While the Nifty 50 index — represent-ing India’s largest companies — has risen 48 per cent from March’s low, the Nifty’s Midcap 100 index climbed around 50 per cent.

Newcomers have also piled into penny stocks, which can be particularly volatile. Mr Kamath said Zerodha encouraged punters to reconsider, warning about the risks of investment and requiring customers to wait for a

mobile password before completing the trade — a measure he said was intended to slow them down.

More broadly, the rush into risky assets at a time when India’s coronavi-rus crisis is exacerbating has raised con-cerns over the prospect of big losses for new investors.

Data last month showed that the country’s gross domestic product shrank 24 per cent from a year earlier in the quarter ending in June, one of the world’s biggest contractions.

India has been detecting more new Covid-19 infections than any country in the world since mid-August. With more than 4.2m cases in total, the country has overtaken Brazil as the second-worst affected, after the US.

SR Srinivasan, a financial adviser based in Bangalore, said he had seen a surge in inquiries from prospectiveclients who had never previously invested in stocks.

“Because all stocks seem to be going up, including penny stocks, that can lull people into thinking that they’ve got their method right,” he said. “It may be dumb luck but people may be thinking it’s due to their strategy.”

Pradeep Mahtani, an investment adviser based in Mumbai, said he tried to convince new clients to invest in mutual funds for at least a year before moving into stocks directly.

New investors often “don’t have the patience or time to do any research”, he added. “They say, ‘Give me some names of stocks,’ and without seeing whether it’s suitable for them, they go and invest. Because they tend to make quick money, that’s snowballing slowly into more and more people buying.”Additional reporting by Andrea Rodrigues

Benjamin Parkin — New Delhi

Millions of Indians have piled into the country’s stock market, helping tosustain a strong rebound since the depths of March but raising concerns about the risks of losses as the corona-virus crisis worsens.

The number of individual investor accounts rose 20 per cent from the start of the year to 24m in July, according to Indian securities depository CDSL, which tracks Asia’s fourth-biggest stock market by capitalisation after mainland China, Hong Kong and Japan.

Analysts say the influx mirrors aglobal trend during the pandemic as homebound individuals have begun to dabble in stocks for the first time.

In India, which had one of the world’s strictest lockdowns, flows into the equity market were heightened by an inability to access more traditional investments such as physical gold or real estate, while falling interest rates made safer debt investments lessattractive.

Zerodha, a 10-year-old discountbrokerage that has grown into India’s largest, handles more daily transactions than Robinhood, the popular USplatform, according to founder and chief executive Nithin Kamath.

He said his Bangalore-based platform was processing 5m to 7m orders a day compared with Robinhood’s recently reported 4.3m.

Mr Kamath said his platform was

Bangalore-based Zerodha

claims more daily trades than

popular US app Robinhood

‘Because they make quick money, that’s snowballing into more and more people buying’

Shares on the Bombay Stock Exchange have climbed around 50 per cent since March lowsDhiraj Singh/Bloomberg

Equities. Pandemic upheaval

‘Fomo feeling’ propels Indian retail investors into stocks

India’s mid-cap companies prove popularNifty Mid-cap 100 index

Source: Refinitiv

10,000

12,000

14,000

16,000

18,000

20,000

Jan 2020 Sep

Attracta MooneyInvestment Correspondent

Businesses in Spain, Italy, the Nether-lands and the UK were more likely to cut dividends than executive pay this year, despite calls from shareholders for bosses to share the financial pain caused by the pandemic.

More than half of Spanish businesses examined by Georgeson, a corporate governance consultancy, cancelled, postponed or reduced dividends in 2020. Only 29 per cent introduced a temporary reduction in executive pay.

In Italy, 44 per cent of companies changed their dividend policies because of Covid-19 but just 29 per cent cut pay for bosses, according to the review of the annual meeting season in Europe.

This disparity between protection of salaries and bonuses at the top while shareholders have been hit with wide-spread dividend cuts is emerging as a flashpoint for investors.

Asset managers such as Schroders and M&G have spoken out about the need for companies to show restraint on pay if they are cutting dividends or receiving government support.

“Executive remuneration remains a key focal point for investors and was amongst the most contested resolutions

in the majority of the markets,” said Georgeson’s Domenic Brancati.

But he added that, despite this focus, shareholder revolts over executive pay had fallen slightly across Europe com-pared with 2019 — suggesting that investors were giving companies some leeway on how they dealt with the pan-demic. Investors could become more vocal about this issue next year, he said.

One UK-based asset manager said it was “still having lots of conversations with companies around pay” but for this year had decided not to vote against companies on the issue.

But it added that the business would watch remuneration and dividends closely next year.

Companies around the world have cut or cancelled dividends in response to the crisis, hitting income streams for many investors.

According to Janus Henderson, global dividends had their biggest quarterly fall in a decade during the second quar-ter, with more than $100bn wiped off their value.

The Georgeson data shows that almost half of UK companies changed their dividend payout while lessthan 45 per cent altered executive remuneration.

In the Netherlands, executive pay took a hit at 29 per cent of companies, while 34 per cent adjusted dividends. In contrast, a quarter of Swiss executives were hit with a pay cut but only a fifth of groups cut or cancelled their dividend.

Equities

European businesses quicker to cut dividends than executive pay

‘Executive remuneration was amongst the most contested resolutions in the majority of markets’

FastFTOur globalteam gives you market-moving news and views, 24 hours a dayft.com/fastft

SEPTEMBER 10 2020 Section:Markets Time: 9/9/2020 - 18:31 User: stephen.smith Page Name: MARKETS1, Part,Page,Edition: EUR, 11, 1


COMPANIES & MARKETS

F inancial markets are being pulled in different directions by two big forces, the injection of liquidity from central banks and concerns over a second

wave of Covid-19 infections.Daily news headlines can lead us to

believe that, of the two, coronavirus is the dominant force for markets. The coming months are likely to show that it is not. Investors should back central bankers to win this tug of war and set up their portfolios accordingly.

Policymakers around the world responded to the pandemic with unprecedented scale and speed.

While they continue to support risk-ier assets, such as stocks and corporate bonds through vast asset-purchasing programmes and rock-bottom interest rates, the most important thing inves-tors can do is to stay invested.

In particular, we think the UK and German equity markets are likely to outperform. The composition of the UK stock market, which trades at a sizeable discount to other major markets, leaves it well placed to benefit from the global recovery from Covid-19.

Some 40 per cent of the benchmark FTSE 100 group, by market capitalisa-tion, is made up of value companies — meaning they trade at a low valuation compared with their earnings or assets. These should outperform as the recov-ery progresses.

The UK is also set to benefit from a recovery in Brent crude prices, which we expect to rise to $55 a barrel by the middle of next year.

Energy stocks, typically a defensive investment, account for 11 per cent of the MSCI UK index compared with 4 per cent for the MSCI World index.

While negotiations over a post-Brexit

Central banks will win the tug of war in asset trading

trade deal with the EU remain strained, the risk of no-deal seems exaggerated. Such an outcome would be mutually detrimental and both sides are going to work to steer clear of it.

Germany also has several advantages going into the recovery phase of the pan-demic. The nation entered the crisis with strong public finances. As a result, it has been well placed to support its economy with large stimulus.

Berlin’s response has been to unleash a fiscal expansion equivalent to about 8 per cent of GDP and it has the potential to inject more if needed.

The composition of the German

market also helps as it is heavy onindustrial stocks that could rise in lock-step with a global economic recovery.

By contrast, the US equity rally since March has been narrowly focused on a handful of mega-cap tech stocks.

The sharp rotation out of tech within the past week pushed the whole market lower but it also highlights the need to diversify. We recommend investing in long-term trends that have beenaccelerated by the current crisis.

For example, supply chains are likely to be less global and more local in future, which will benefit the automa-tion and robotics sector. Europe is home to many of the market leaders in global factory and process automation.

Digitalisation of the healthcare indus-try also looks set to grow in the wake of

In particular, we thinkthe UK and German equity markets are likely to outperform

Tiffany led the S&P 500 fallers after LVMH said it was no longer in a position to complete its deal with the jeweller after the French government intervened. Tiffany countered by suing LVMH.

A tech rebound was led by Qorvo. The chipmaker raised revenue and earnings guidance for its quarter ending September, citing strong demand from handset makers and mobile network customers. The update helped lift peers Skyworks, Nvidia and Qualcomm.

Pfizer and partner BioNTech rose after announcing they had concluded exploratory talks with the European Commission to supply 200m doses of their Covid-19 vaccine candidate. Rival vaccine developers such as Moderna rose following a trial setback for AstraZeneca.

Travel stocks were weak after United Airlines cut its third-quarter capacity and revenue guidance, saying demand remained depressed.

Lululemon dropped after its quarterly stores revenue disappointed, which eclipsed online growth.

The gymwear maker said reopened stores were operating at 75 per cent of 2019 productivity levels.

Paintmaker Sherwin-Williams gained after BMO Capital turned positive, based on expectations that US home sales and new-build completions would remain strong into 2022. Bryce Elder

Wall Street LondonEurozone

Pandora, the Danish jewellery retailer, climbed after Citigroup turned positive.

Citi cited greater confidence in like-for-like sales improving from 2021 onwards on “stronger brand heat metrics and full-price sales mix”.

Even after a “stellar” 60 per cent gain so far this year, Pandora remained cheap at about 13 times 2022 earnings for a business delivering 20 per cent margins, Citi told clients.

STMicroelectronics was the top gainer among technology stocks after its chief executive reportedly said at an industry conference that third-quarter revenues would be above the midpoint of previous guidance.

Scor hit its best level since July after the reinsurer gave a positive update on pricing and claims rates during a virtual investor day.

Sector peer Axa rose after Berenberg upgraded the group to “buy”, saying a switch of focus from life insurance to protection would drive above-average returns.

Carlsberg retreated after a downgrade to “sell” from Handelsbanken.

A resurgence of Covid-19 cases and local lockdowns would weigh on Carlsberg’s pub sales, which was incompatible with market expectations that the brewer’s earnings would recover fully in 2021, the broker said. Bryce Elder

Aston Martin led the FTSE 250 gainers after Bernstein Research started coverage with “outperform” advice.

Ageing populations, a flight to the suburbs and reduced air travel were all under-recognised positives for car ownership and automaker profitability, Bernstein said.

The broker also argued that Aston’s new management team had the experience to turn the marque round while making cost savings.

“More importantly, the Aston Martin DBX, arguably the most critical product in the company’s 107-year-old history, is finally here and has the potential to catapult the company and its finances to an entirely new level,” Bernstein said.

A weak pound and rising oil prices helped to lift the wider market in spite of weakness among travel stocks after the UK tightened its local Covid-19 restrictions.

BT jumped on a Bloomberg report that CVC had studied the feasibility of launching a bid in partnership with Deutsche Telekom.

Unilever climbed amid unusually strong demand for call options.

Alan Jope, group chief executive, hosted a call with investors this week where he discussed portfolio management. Bryce Elder

seen a spillover into other asset classes is important.”

European bourses also rebounded. The region-wide Stoxx Europe 600 closed up 1.6 per cent, despite stocks linked to tourism weighing on the benchmark.

Ryanair, Europe’s largest low-cost airline, said it expected to carry fewer passengers than forecast in the 12 months to the end of March with the carrier warning that this winter would be “a write-off”.

While shares in Ryanair rose after the statement, owing to “one of the strongest balance sheets in the industry”, said Citi

analysts, sector peers slid. Budget airline easyJet fell, as did travel group Tui and British Airways owner IAG.

The euro gained 0.3 per cent against the dollar to $1.1818 on a Bloomberg report that the European Central Bank’s growth and inflation projections due today would only change slightly.

Oil prices clawed back some ground lost following steep falls on Tuesday that were triggered by fears that global demand for crude was waning.

Global benchmark Brent crude advanced 3.3 per cent to $41.08 a barrel. Ray Douglas

Tourism stocks slide after Ryanair warns of sluggish recovery

Source: Refinitiv

Indices rebased

97

96

98

99

100

101

102

103

104

Sep 20202 9

Stoxx Europe 600 Travel & Leisure

Stoxx Europe 600

Mark HaefeleMarkets Insight

the pandemic. Europe already accounts for 22 per cent of the companies in an MSCI index tracking such “medtech” companies.

Green initiatives at the core of Europe’s Covid recovery plans alsoprovide an opportunity for the region’s companies. In July, EU leaders agreed on a €750bn recovery fund, the coreelement of which focuses on climate protection and digitalisation.

Over the long term, this should encourage the development of areas such as renewables, energy efficiency, electric vehicles and infrastructure related to mobility and transport.

Further virus outbreaks could result in a more stop-start approach to reopen-ing economies but these will only slow, not derail, the recovery.

We now know more about the virus than at the start of the year. Estimates of both the mortality and virus transmis-sion rates have fallen since the start of the pandemic and a significant propor-tion of some populations have already contracted the virus.

This will allow policymakers to adopt less economically destructive measures in containing new outbreaks, including mask wearing, contact tracing and social distancing.

In addition, there is evidence of progress on vaccines and therapeutics. While fears of a second wave will add volatility around the strength and speed of the recovery, we expect increased economic momentum over the coming year.

All this suggests room for global stocks to move higher. But investors will need to choose particularly carefully.

Mark Haefele is chief investment officer at UBS Global Wealth Management

3 Rebound in tech stocks helps lift global equity markets higher3 Tourism-related stocks slide after Ryanair scales back passenger forecasts3 Brent crude bounces back from steep falls, climbing above $40

Global stocks bounced back yesterday, snapping a three-session rout in some of Wall Street’s largest tech companies.

Tesla, the electric car company, was up more than 5 per cent at lunchtime, having plummeted by a fifth the day before.

The move higher followed a 4 per cent tumble in the tech-heavy Nasdaq Composite on Tuesday, which was deemed a correction as defined by a 10 per cent decline from a recent peak.

In spite of the retreat, the Nasdaq is still up more than 20 per cent for the year and 60 per cent since its March lows.

Wall Street’s major indices were all higher at lunchtime in New York with the S&P 500 up 2 per cent, the Nasdaq climbing 2.5 per cent and the Dow Jones Industrial Average 1.9 per cent higher.

Joe Little, chief strategist at HSBC Global Asset Management, said the resilient performance of equities and muted reaction in the bond market was a positive sign that the tech rout had not spread panic to other corners of the market.

The yield on US Treasuries, an asset often bought during times of market stress, barely moved, edging up 1 basis point to 0.70 per cent yesterday.

The sell-off looked “similar to the phase in early June when we saw a little bit of ratcheting down and consolidation”, Mr Little added. “The fact that we haven’t

What you need to know

The day in the markets

Markets update

US Eurozone Japan UK China BrazilStocks S&P 500 Eurofirst 300 Nikkei 225 FTSE100 Shanghai Comp BovespaLevel 3402.47 1434.31 23032.54 6012.84 3254.63 100782.87% change on day 2.12 1.71 -1.04 1.39 -1.86 0.73Currency $ index (DXY) $ per € Yen per $ $ per £ Rmb per $ Real per $Level 93.526 1.181 106.235 1.300 6.846 5.300% change on day 0.087 0.170 0.274 -0.230 0.201 -1.093Govt. bonds 10-year Treasury 10-year Bund 10-year JGB 10-year Gilt 10-year bond 10-year bondYield 0.697 -0.462 0.025 0.235 3.093 6.669Basis point change on day 2.780 3.300 -0.800 4.800 -2.600 0.500World index, Commods FTSE All-World Oil - Brent Oil - WTI Gold Silver Metals (LMEX)Level 376.84 40.95 38.21 1910.95 26.68 2989.90% change on day 1.49 2.68 3.61 -0.91 -0.58 -1.77Yesterday's close apart from: Currencies = 16:00 GMT; S&P, Bovespa, All World, Oil = 17:00 GMT; Gold, Silver = London pm fix. Bond data supplied by Tullett Prebon.

Main equity markets

S&P 500 index Eurofirst 300 index FTSE 100 index

| | | | | | | | | | | | | | | | | | | |

Jul 2020 Sep3040

3200

3360

3520

3680

| | | | | | | | | | | | | | | | | | | |

Jul 2020 Sep1360

1400

1440

1480

| | | | | | | | | | | | | | | | | | | |

Jul 2020 Sep5760

6080

6400

Biggest movers% US Eurozone UK

Ups

Qorvo 8.68Nvidia 5.78Skyworks Solutions 5.11Corning 5.07West Pharmaceutical Services 4.63

Stmicroelectronics 7.26Caixabank 5.09Edf 4.82Orange 4.78Mapfre 4.67

Bt 5.62Ashtead 5.33Unilever 3.83British American Tobacco 3.63Standard Chartered 2.96

%

Dow

ns

Tiffany & Co -8.52Nordstrom -5.48American Airlines -5.39Carnival -4.57Norwegian Cruise Line Holdings Ltd -4.43

Prices taken at 17:00 GMT

Hugo Boss -2.09Adp -2.03Airbus -1.96Seadrill -1.70Lufthansa -1.65Based on the constituents of the FTSE Eurofirst 300 Eurozone

Rolls-royce Holdings -3.75Int Consolidated Airlines S.a. -3.56Whitbread -3.55Itv -2.89Intercontinental Hotels -2.70

All data provided by Morningstar unless otherwise noted.

SEPTEMBER 10 2020 Section:Markets Time: 9/9/2020 - 18:55 User: stephen.smith Page Name: MARKETS2, Part,Page,Edition: EUR, 12, 1


WORLD MARKETS AT A GLANCE FT.COM/MARKETSDATA

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

2.12%

Nasdaq Composite

2.60%

Dow Jones Ind

1.88%

FTSE 100

1.39%

FTSE Eurofirst 300

1.71%

Nikkei

-1.04%

Hang Seng

-0.63%

FTSE All World $

1.49%

$ per €

0.170%

$ per £

-0.230%

¥ per $

0.274%

£ per €

0.331%

Oil Brent $ Sep

1.46%

Gold $

-0.91%

Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparisonAMERICAS EUROPE ASIAAug 10 - - Index All World Aug 10 - Sep 09 Index All World Aug 10 - Sep 09 Index All World Aug 10 - Sep 09 Index All World Aug 10 - Sep 09 Index All World Aug 10 - Sep 09 Index All World

S&P 500 New York

3,360.473,402.47

Day 2.12% Month 1.49% Year 14.20%

Nasdaq Composite New York

10,968.36 11,129.51

Day 2.60% Month 1.05% Year 37.58%

Dow Jones Industrial New York

27,791.44 28,018.21

Day 1.88% Month 2.16% Year 4.43%

S&P/TSX COMP Toronto

16,605.50 16,369.50

Day 1.68% Month -1.04% Year -0.74%

IPC Mexico City

38,703.59

36,284.04

Day 0.59% Month -4.50% Year -14.93%

Bovespa São Paulo

103,444.48100,782.87

Day 0.73% Month -1.89% Year -2.27%

FTSE 100 London

6,050.59 6,012.84

Day 1.39% Month -0.09% Year -16.71%

FTSE Eurofirst 300 Europe

1,436.83 1,434.31

Day 1.71% Month 1.84% Year -5.45%

CAC 40 Paris

5,027.99 5,042.98

Day 1.40% Month 3.14% Year -9.77%

Xetra Dax Frankfurt

12,946.8913,237.21

Day 2.07% Month -0.05% Year NaN%

Ibex 35 Madrid

7,263.507,020.90

Day 0.95% Month 1.01% Year -22.08%

FTSE MIB Milan

20,209.11 19,771.32

Day 2.02% Month 1.41% Year -10.00%

Nikkei 225 Tokyo

22,750.2423,032.54

Day -1.04% Month 3.15% Year 8.65%

Hang Seng Hong Kong

24,890.6824,468.93

Day -0.63% Month -0.37% Year -8.43%

Shanghai Composite Shanghai

3,340.293,254.63

Day -1.86% Month -2.96% Year 8.50%

Kospi Seoul

2,418.67 2,375.81

Day -0.35% Month 1.03% Year 18.25%

FTSE Straits Times Singapore

2,544.152,499.33

Day -0.22% Month -1.70% Year -20.43%

BSE Sensex Mumbai

38,407.01 38,193.92

Day -0.45% Month 0.40% Year 3.28%

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 46192.71 45481.76Australia All Ordinaries 6058.90 6190.20

S&P/ASX 200 5878.60 6007.80S&P/ASX 200 Res 4491.00 4583.90

Austria ATX 2252.36 2217.79Belgium BEL 20 3362.40 3303.23

BEL Mid 7850.75 7790.46Brazil IBovespa 100782.87 100050.43Canada S&P/TSX 60 982.90 965.57

S&P/TSX Comp 16369.50 16099.52S&P/TSX Div Met & Min 441.91 452.23

Chile S&P/CLX IGPA Gen 19243.26 19375.75China FTSE A200 12039.99 12281.24

FTSE B35 9000.71 8988.96Shanghai A 3411.05 3475.79Shanghai B 246.65 252.00Shanghai Comp 3254.63 3316.42Shenzhen A 2277.11 2353.02Shenzhen B 939.03 943.69

Colombia COLCAP 1232.34 1242.98Croatia CROBEX 2013.05 2011.29

Cyprus CSE M&P Gen 68.46 68.68Czech Republic PX 900.68 903.66Denmark OMXC Copenahgen 20 1321.83 1290.46Egypt EGX 30 10951.29 11136.03Estonia OMX Tallinn 1172.54 1178.24Finland OMX Helsinki General 10090.40 9927.68France CAC 40 5042.98 4973.52

SBF 120 3988.52 3933.26Germany M-DAX 27534.84 27210.34

TecDAX 3091.18 3024.02XETRA Dax 13237.21 12968.33

Greece Athens Gen 631.74 627.56FTSE/ASE 20 1511.93 1502.77

Hong Kong Hang Seng 24468.93 24624.34HS China Enterprise 9728.52 9830.39HSCC Red Chip 3781.78 3826.30

Hungary Bux 35142.74 35037.61India BSE Sensex 38193.92 38365.35

Nifty 500 9290.20 9329.85Indonesia Jakarta Comp 5149.38 5244.07Ireland ISEQ Overall 6354.26 6283.58Israel Tel Aviv 125 1375.12 1371.06

Italy FTSE Italia All-Share 21625.69 21213.60FTSE Italia Mid Cap 34865.28 34419.45FTSE MIB 19771.32 19380.18

Japan 2nd Section 6350.48 6374.69Nikkei 225 23032.54 23274.13S&P Topix 150 1337.90 1351.50Topix 1605.40 1620.89

Jordan Amman SE 1584.00 1583.91Kenya NSE 20 1849.64 1855.04Kuwait KSX Market Index 6633.44 6603.51Latvia OMX Riga 1116.39 1108.86Lithuania OMX Vilnius 784.84 787.40Luxembourg LuxX 1033.43 1015.78Malaysia FTSE Bursa KLCI 1496.72 1519.32Mexico IPC 36284.04 36071.43Morocco MASI 10231.60 10190.57Netherlands AEX 552.05 540.79

AEX All Share 793.30 778.39New Zealand NZX 50 11739.11 11895.63Nigeria SE All Share 25582.23 25605.64Norway Oslo All Share 932.48 914.77Pakistan KSE 100 42022.25 41985.19

Philippines Manila Comp 5932.84 6034.03Poland Wig 50757.07 49556.34Portugal PSI 20 4354.05 4260.88

PSI General 3188.27 3103.85Romania BET Index 9082.08 9114.02Russia Micex Index 2876.07 2888.79

RTX 1201.34 1189.47Saudi-Arabia TADAWUL All Share Index 8089.54 8050.14Singapore FTSE Straits Times 2499.33 2504.76Slovakia SAX 332.46 331.28Slovenia SBI TOP 873.85 -South Africa FTSE/JSE All Share 55211.34 54438.82

FTSE/JSE Res 20 55170.34 54939.74FTSE/JSE Top 40 50838.92 50182.96

South Korea Kospi 2375.81 2384.22Kospi 200 313.77 313.67

Spain IBEX 35 7020.90 6955.00Sri Lanka CSE All Share 5370.39 5316.05Sweden OMX Stockholm 30 1812.58 1782.60

OMX Stockholm AS 713.42 702.26Switzerland SMI Index 10406.57 10250.44

Taiwan Weighted Pr 12608.58 12663.56Thailand Bangkok SET 1293.40 1293.80Turkey BIST 100 1099.68 1089.60UAE Abu Dhabi General Index 4519.56 4507.95UK FT 30 2209.50 2212.80

FTSE 100 6012.84 5930.30FTSE 4Good UK 5598.89 5536.25FTSE All Share 3358.15 3322.13FTSE techMARK 100 5780.08 5765.40

USA DJ Composite 9236.46 9076.56DJ Industrial 28018.21 27500.89DJ Transport 11246.95 11080.87DJ Utilities 812.55 798.63Nasdaq 100 11380.56 11068.26Nasdaq Cmp 11129.51 10847.69NYSE Comp 12890.19 12688.07S&P 500 3402.47 3331.84Wilshire 5000 34654.25 33969.18

Venezuela IBC 520968.38 522114.50Vietnam VNI 889.32 890.14

Cross-Border DJ Global Titans ($) 407.10 397.28Euro Stoxx 50 (Eur) 3324.83 3267.37Euronext 100 ID 988.89 973.47FTSE 4Good Global ($) 8545.23 8344.95FTSE All World ($) 376.84 371.32FTSE E300 1434.31 1410.25FTSE Eurotop 100 2714.73 2668.58FTSE Global 100 ($) 2257.73 2200.92FTSE Gold Min ($) 2720.84 2722.39FTSE Latibex Top (Eur) 4440.00 4432.20FTSE Multinationals ($) 2359.27 2423.28FTSE World ($) 669.80 659.10FTSEurofirst 100 (Eur) 3656.60 3597.29FTSEurofirst 80 (Eur) 4524.41 4444.43MSCI ACWI Fr ($) 562.81 574.49MSCI All World ($) 2354.41 2408.05MSCI Europe (Eur) 1478.30 1492.04MSCI Pacific ($) 2691.43 2674.75S&P Euro (Eur) 1515.54 1489.97S&P Europe 350 (Eur) 1470.72 1447.18S&P Global 1200 ($) 2653.48 2610.94Stoxx 50 (Eur) 2997.15 2944.22

(c) Closed. (u) Unavaliable. † Correction. ♥ Subject to official recalculation. For more index coverage please see www.ft.com/worldindices. A fuller version of this table is available on the ft.com research data archive.

STOCK MARKET: BIGGEST MOVERS UK MARKET WINNERS AND LOSERSAMERICA LONDON EURO MARKETS TOKYOACTIVE STOCKS stock close Day's

traded m's price changeApple 99.8 117.85 5.03Amazon.com 86.2 3272.00 122.16Nvidia 51.9 504.05 27.53Microsoft 41.0 211.86 9.20Facebook 25.9 276.00 4.84Advanced Micro Devices 20.7 80.82 2.13Boeing 17.4 159.20 -1.88Alphabet 14.5 1550.80 27.20Alphabet 12.5 1561.31 28.92Salesforce.com 10.3 251.19 9.92

BIGGEST MOVERS Close Day's Day'sprice change chng%

UpsQorvo 124.02 9.91 8.68Nvidia 504.05 27.53 5.78Skyworks Solutions 137.53 6.69 5.11Corning 33.37 1.61 5.07West Pharmaceutical Services 274.77 12.15 4.63

DownsTiffany & Co 111.44 -10.38 -8.52Nordstrom 15.43 -0.90 -5.48American Airlines 12.90 -0.74 -5.39Carnival 17.46 -0.84 -4.57Norwegian Cruise Line Holdings Ltd 17.71 -0.82 -4.43

ACTIVE STOCKS stock close Day'straded m's price change

Astrazeneca 239.8 8386.00 38.00Unilever 122.6 4743.00 175.00Glaxosmithkline 111.5 1532.60 39.80Diageo 101.9 2646.00 45.50Rio Tinto 95.2 4790.00 90.00Bp 85.4 262.25 3.75Vodafone 83.0 109.50 2.30British American Tobacco 82.5 2668.50 93.50Hsbc Holdings 75.6 327.70 6.40Polymetal Int 73.8 1945.50 -28.00


UpsAston Martin Lagonda Global Holdings 59.15 3.65 6.58Avon Rubber 3950.00 235.00 6.33Bt 110.00 5.85 5.62Ashtead 2844.00 144.00 5.33Micro Focus Int 290.30 11.70 4.20

DownsWetherspoon ( J.d.) 947.00 -99.00 -9.46Watches Of Switzerland 306.00 -26.00 -7.83Rank 124.60 -10.40 -7.70Cineworld 52.78 -4.24 -7.44Ssp 236.60 -16.00 -6.33


Asml Holding 271.4 304.85 7.45Sap Se O.n. 266.3 137.52 4.08Daimler Ag Na O.n. 240.8 46.39 0.82Allianz Se Na O.n. 219.2 183.90 4.38Unilever 206.8 51.48 1.79Airbus 206.4 69.39 -1.39Volkswagen Ag Vzo O.n. 199.2 151.32 0.16Intesa Sanpaolo 197.1 1.79 0.03Total 195.7 32.74 0.39Lvmh 195.5 404.05 -0.35


UpsStmicroelectronics 24.97 1.69 7.26Caixabank 2.06 0.10 5.09Gjensidige Forsikring 18.11 0.85 4.95Edf 8.52 0.39 4.82Orange 9.60 0.44 4.78

DownsHugo Boss Ag Na O.n. 22.50 -0.48 -2.09Adp 86.80 -1.80 -2.03Airbus 69.39 -1.39 -1.96Hennes & Mauritz Ab, H & M Ser. B 13.64 -0.25 -1.81Seadrill 0.22 0.00 -1.70


Softbank . 2193.0 5677.00 -168.00Toyota Motor 493.3 6886.00 -129.00Sony 462.9 8078.00 -157.00Mitsubishi Ufj Fin,. 316.4 431.90 -11.30Sumitomo Mitsui Fin,. 301.4 3042.00 -79.00Tokyo Electron 300.4 26025.00 -545.00Fast Retailing Co., 263.8 66530.00 -710.00Mizuho Fin,. 234.6 139.00 -4.10Asahi Holdings, 204.4 3631.00 -69.00Honda Motor Co., 197.5 2643.00 -57.00


UpsKawasaki Kisen Kaisha, 1214.00 57.00 4.93Mitsui O.s.k.lines, 2102.00 80.00 3.96Nippon Yusen Kabushiki Kaisha 1777.00 59.00 3.43Tosoh 1730.00 55.00 3.28Konami 4385.00 105.00 2.45

DownsCasio Computer Co., 1703.00 -79.00 -4.43Cyberagent,. 5440.00 -230.00 -4.06Dena Co., 1773.00 -65.00 -3.54Konica Minolta Holdings, . 320.00 -11.00 -3.32Aozora Bank, 1838.00 -62.00 -3.26

Based on the constituents of the S&P500 Based on the constituents of the FTSE 350 index Based on the constituents of the FTSEurofirst 300 Eurozone index Based on the constituents of the Nikkei 225 index

Sep 09 %Chg %ChgFTSE 100 price(p) week ytdWinnersMelrose Industries 119.50 18.9 -50.7Jd Sports Fashion 817.80 15.0 -1.6Smith (ds) 290.00 12.1 -25.0Hikma Pharmaceuticals 2641.00 9.2 33.0Imperial Brands 1360.50 9.0 -27.5Ashtead 2844.00 8.6 18.5Bt 110.00 8.2 -43.9Sainsbury (j) 191.80 6.2 -17.4Johnson Matthey 2608.00 6.1 -14.0Itv 62.60 6.0 -58.5Gvc Holdings 839.40 5.4 -8.7Experian 2983.00 5.2 17.0

LosersTaylor Wimpey 112.85 -10.5 -42.7Ocado 2302.00 -8.8 82.8Barratt Developments 500.60 -8.5 -33.4Persimmon 2471.00 -8.3 -9.5Scottish Mortgage Investment Trust 907.50 -6.3 54.9Berkeley Holdings (the) 4446.00 -5.9 -10.1Rightmove 619.00 -5.1 -3.4M&g 157.00 -4.8 -35.6Intermediate Capital 1279.00 -4.5 -22.0Whitbread 2364.00 -4.3 -43.8Associated British Foods 1933.00 -4.3 -25.1Legal & General 198.35 -4.2 -36.2

Sep 09 %Chg %ChgFTSE 250 price(p) week ytdWinnersRoyal Mail 219.60 26.6 -5.3Future 1768.00 16.2 20.9Genus 3834.00 12.0 18.9Cls Holdings 217.00 10.5 -29.8Aston Martin Lagonda Global Holdings 59.15 9.5 -66.4Bodycote 600.50 7.3 -37.1Mediclinic Int 269.80 6.7 -34.3Carnival 1094.00 6.7 -70.0Shaftesbury 539.00 6.6 -42.3Provident Fin 225.60 6.3 -51.4Balfour Beatty 234.20 6.2 -12.6Ascential 310.00 5.8 -20.1

LosersCineworld 52.78 -12.5 -76.0Softcat 1273.00 -10.7 6.3Rank 124.60 -9.1 -55.5Polar Capital Technology Trust 2070.00 -8.6 28.6Travis Perkins 1112.00 -8.6 -31.7Allianz Technology Trust 2360.00 -8.3 44.8Barr (a.g.) 387.50 -7.7 -33.3Dixons Carphone 81.90 -7.6 -42.4Herald Investment Trust 1580.00 -7.5 6.5Bmo Commercial Property Trust 63.00 -7.4 -45.7Countryside Properties 310.00 -7.1 -33.8Pphe Hotel 978.00 -6.9 -49.1

Sep 09 %Chg %ChgFTSE SmallCap price(p) week ytdWinnersRps 45.60 20.0 -73.8Petra Diamonds 1.72 16.7 -80.6Reach 61.50 15.6 -55.5Pendragon 9.27 13.9 -27.7Bakkavor 64.10 12.5 -56.0Ricardo 348.00 11.5 -55.5Stv 255.00 10.9 -38.6Ten Entertainment 139.25 10.5 -54.3Xaar 99.00 10.2 88.9Clipper Logistics 440.00 10.0 50.7Dwf 65.00 10.0 -49.2Alfa Fin Software Holdings 99.90 9.7 -16.5

LosersTullow Oil 16.04 -19.4 -73.1Mccoll's Retail 23.80 -12.8 -37.4Marston's 47.22 -11.5 -63.6Batm Advanced Communications Ld 117.00 -11.0 202.3Saga 16.03 -10.9 -70.3Costain 47.35 -9.8 -69.5Newriver Reit 53.00 -9.1 -73.6Allianz Technology Trust 2360.00 -8.3 44.8Ted Baker 108.00 -8.2 -69.4Arrow Global 100.00 -8.1 -62.4Enquest 12.06 -8.1 -45.3Capital & Regional 62.40 -7.7 -75.9

Sep 09 %Chg %ChgIndustry Sectors price(p) week ytdWinnersFixed Line Telecommunication 1346.13 7.5 -Industrial Transportation 2057.41 7.1 -16.1Tobacco 27819.35 5.0 -Personal Goods 38977.60 4.6 2.6Automobiles & Parts 2749.60 4.6 -Beverages 20895.54 4.5 -General Industrials 5545.19 4.3 -Chemicals 12789.72 2.8 -3.8Pharmaceuticals & Biotech. 17831.03 2.2 0.1Support Services 9247.13 2.1 -2.0Media 7122.85 2.1 -Electronic & Electrical Equip. 9092.49 2.1 5.3

LosersIndex - Technology Hardware & Equipment 2188.70 -4.8 10.5Household Goods 17210.64 -2.9 -3.9Electricity 7195.22 -2.9 -Equity Investment Instruments 10941.68 -2.6 0.2Industrial Metals 3308.81 -2.3 -Software & Computer Services 2073.29 -2.2 -5.5Food Producers 6552.63 -2.0 -Oil Equipment & Services 4421.02 -1.4 -47.2Life Insurance 6085.18 -0.7 -Gas Water & Multiutilities 4777.23 -0.4 -General Retailers 2282.75 -0.4 -8.9Aerospace & Defense 3247.20 -0.4 -

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

CURRENCIES

DOLLAR EURO POUNDClosing Day's Closing Day's Closing Day's

Sep 9 Currency Mid Change Mid Change Mid Change






Sep 9 Currency Mid Change Mid Change Mid ChangeArgentina Argentine Peso 74.7659 0.0623 88.2912 0.1974 97.1919 -0.1099Australia Australian Dollar 1.3750 -0.0074 1.6238 -0.0065 1.7875 -0.0132Bahrain Bahrainin Dinar 0.3771 - 0.4453 0.0006 0.4901 -0.0010Bolivia Bolivian Boliviano 6.9100 - 8.1600 0.0115 8.9827 -0.0177Brazil Brazilian Real 5.3002 -0.0585 6.2590 -0.0603 6.8899 -0.0898Canada Canadian Dollar 1.3174 -0.0020 1.5557 -0.0002 1.7126 -0.0060Chile Chilean Peso 767.7850 -8.0700 906.6792 -8.2442 998.0826 -12.4743China Chinese Yuan 6.8460 0.0137 8.0845 0.0275 8.8995 0.0003Colombia Colombian Peso 3722.2000 -42.0600 4395.5561 -43.4314 4838.6785 -64.2990Costa Rica Costa Rican Colon 597.2750 -0.7400 705.3235 0.1171 776.4280 -2.4909Czech Republic Czech Koruna 22.4519 -0.0353 26.5135 -0.0044 29.1864 -0.1034Denmark Danish Krone 6.3006 -0.0093 7.4404 -0.0006 8.1905 -0.0283Egypt Egyptian Pound 15.7807 0.0131 18.6355 0.0416 20.5141 -0.0233Hong Kong Hong Kong Dollar 7.7505 0.0000 9.1526 0.0129 10.0753 -0.0198Hungary Hungarian Forint 302.1043 -1.8601 356.7557 -1.6929 392.7207 -3.1952India Indian Rupee 73.5475 -0.0575 86.8524 0.0541 95.6081 -0.2629

Indonesia Indonesian Rupiah 14785.0000 20.0000 17459.6551 48.0928 19219.7918 -11.7541Israel Israeli Shekel 3.3986 0.0057 4.0134 0.0123 4.4179 -0.0013Japan Japanese Yen 106.2350 0.2900 125.4532 0.5180 138.1003 0.1061..One Month 106.2349 0.2899 125.4532 0.5181 138.1002 0.1060..Three Month 106.2349 0.2897 125.4533 0.5182 138.1002 0.1059..One Year 106.2343 0.2887 125.4535 0.5186 138.1002 0.1056Kenya Kenyan Shilling 108.4500 0.0500 128.0689 0.2387 140.9796 -0.2122Kuwait Kuwaiti Dinar 0.3059 -0.0002 0.3612 0.0003 0.3977 -0.0010Malaysia Malaysian Ringgit 4.1720 0.0045 4.9267 0.0122 5.4234 -0.0048Mexico Mexican Peso 21.5115 -0.2227 25.4030 -0.2270 27.9639 -0.3451New Zealand New Zealand Dollar 1.4985 -0.0078 1.7695 -0.0067 1.9479 -0.0140Nigeria Nigerian Naira 385.7500 -0.9400 455.5331 -0.4692 501.4560 -2.2106Norway Norwegian Krone 9.0237 -0.0624 10.6561 -0.0586 11.7303 -0.1043Pakistan Pakistani Rupee 166.4500 0.1500 196.5612 0.4527 216.3768 -0.2302Peru Peruvian Nuevo Sol 3.5356 -0.0148 4.1751 -0.0115 4.5960 -0.0283Philippines Philippine Peso 48.6460 0.0855 57.4462 0.1814 63.2374 -0.0130

Poland Polish Zloty 3.7631 -0.0135 4.4439 -0.0097 4.8918 -0.0272Romania Romanian Leu 4.1144 -0.0053 4.8588 0.0006 5.3486 -0.0174Russia Russian Ruble 75.4025 -1.0706 89.0430 -1.1376 98.0195 -1.5873Saudi Arabia Saudi Riyal 3.7509 0.0001 4.4294 0.0063 4.8760 -0.0095Singapore Singapore Dollar 1.3672 -0.0022 1.6145 -0.0003 1.7773 -0.0063South Africa South African Rand 16.6175 -0.2963 19.6236 -0.3218 21.6019 -0.4284South Korea South Korean Won 1189.0000 2.6500 1404.0931 5.0953 1545.6414 0.4118Sweden Swedish Krona 8.7636 -0.0473 10.3490 -0.0413 11.3922 -0.0840Switzerland Swiss Franc 0.9136 -0.0035 1.0789 -0.0026 1.1876 -0.0068Taiwan New Taiwan Dollar 29.3005 0.0260 34.6010 0.0792 38.0892 -0.0410Thailand Thai Baht 31.3750 -0.0725 37.0508 -0.0335 40.7860 -0.1746Tunisia Tunisian Dinar 2.7447 -0.0049 3.2412 -0.0012 3.5679 -0.0134Turkey Turkish Lira 7.4865 -0.0020 8.8408 0.0100 9.7321 -0.0217United Arab Emirates UAE Dirham 3.6732 - 4.3376 0.0061 4.7749 -0.0094United Kingdom Pound Sterling 0.7693 0.0015 0.9084 0.0031 - -..One Month 0.7693 0.0015 0.9084 0.0031 - -

..Three Month 0.7693 0.0015 0.9083 0.0031 - -

..One Year 0.7696 0.0015 0.9078 0.0030 - -United States United States Dollar - - 1.1809 0.0017 1.3000 -0.0026..One Month - - 1.1808 -0.1216 1.3000 -0.0026..Three Month - - 1.1807 -0.1216 1.3000 -0.0026..One Year - - 1.1799 -0.1216 1.3002 -0.0026Venezuela Venezuelan Bolivar Fuerte - - - - - -Vietnam Vietnamese Dong 23176.0000 -1.0000 27368.6170 37.1768 30127.7416 -60.4819European Union Euro 0.8468 -0.0012 - - 1.1008 -0.0037..One Month 0.8467 -0.0012 - - 1.1008 -0.0037..Three Month 0.8466 -0.0012 - - 1.1007 -0.0037..One Year 0.8458 -0.0012 - - 1.1002 -0.0037

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

FTSE ACTUARIES SHARE INDICES UK SERIESwww.ft.com/equities

Produced in conjunction with the Institute and Faculty of Actuaries£ Strlg Day's Euro £ Strlg £ Strlg Year Div P/E X/D TotalSep 09 chge% Index Sep 08 Sep 07 ago yield% Cover ratio adj Return

FTSE 100 (100) 5930.30 -0.12 5107.69 5937.40 5799.08 7235.81 4.70 1.12 19.08 166.67 5630.01FTSE 250 (251) 17625.18 -0.10 15180.34 17642.20 17354.28 19678.45 3.67 1.34 20.28 241.78 13911.39FTSE 250 ex Inv Co (184) 17939.69 0.00 15451.22 17940.06 17613.91 20651.96 4.02 1.30 19.06 217.74 14452.90FTSE 350 (351) 3355.19 -0.12 2889.79 3359.07 3284.93 4031.98 4.52 1.15 19.28 85.79 6349.18FTSE 350 ex Investment Trusts (283) 3275.93 -0.10 2821.51 3279.06 3205.68 3980.87 4.64 1.13 19.14 85.41 3199.14FTSE 350 Higher Yield (150) 2525.24 -0.67 2174.95 2542.32 2490.39 3461.00 7.09 0.98 14.40 93.36 5233.74FTSE 350 Lower Yield (201) 4046.36 0.42 3485.08 4029.43 3934.09 4287.78 2.07 1.70 28.45 64.53 4775.77FTSE SmallCap (259) 5101.04 -0.37 4393.46 5119.91 5066.64 5426.59 4.34 0.28 81.47 89.20 8045.91FTSE SmallCap ex Inv Co (140) 3882.87 -0.62 3344.26 3907.11 3862.43 4337.16 5.37 0.49 37.70 51.22 6415.95FTSE All-Share (610) 3322.13 -0.12 2861.31 3326.26 3254.14 3976.16 4.51 1.12 19.78 84.01 6350.30FTSE All-Share ex Inv Co (423) 3212.58 -0.10 2766.96 3215.95 3144.61 3897.80 4.65 1.11 19.30 82.99 3186.39FTSE All-Share ex Multinationals (536) 1024.47 -0.16 731.32 1026.14 1008.70 1139.25 3.95 0.97 26.05 17.78 2039.22FTSE Fledgling (94) 8621.72 -0.45 7425.77 8661.08 8627.78 9238.02 3.71 1.23 21.84 154.74 17620.40FTSE Fledgling ex Inv Co (44) 10078.64 -0.75 8680.60 10154.92 10121.46 10644.78 4.69 2.79 7.65 123.97 20149.09FTSE All-Small (353) 3538.22 -0.37 3047.42 3551.48 3515.80 3766.14 4.30 0.33 70.88 62.02 7160.26FTSE All-Small ex Inv Co (184) 2903.98 -0.63 2501.16 2922.27 2889.80 3235.18 5.34 0.57 32.57 38.18 6078.34FTSE AIM All-Share (720) 952.77 -0.54 820.61 957.94 946.81 877.62 1.19 1.25 67.34 4.40 1090.72

FTSE Sector IndicesOil & Gas (11) 4134.80 -3.10 3561.25 4266.90 4158.97 8694.27 9.54 1.29 8.14 256.93 4592.08Oil & Gas Producers (8) 4006.25 -3.12 3450.53 4135.12 4028.55 8426.09 9.49 1.31 8.06 252.79 4612.70Oil Equipment Services & Distribution (3) 4359.61 -1.77 3754.87 4438.17 4462.70 9017.29 12.70 0.35 22.55 6.80 3753.96Basic Materials (22) 6113.15 -0.18 5265.18 6124.05 5980.89 6086.29 5.16 2.12 9.14 248.97 7341.20Chemicals (7) 13695.75 0.45 11795.97 13633.79 13266.99 13928.19 2.18 2.75 16.70 181.48 13127.59Forestry & Paper (1) 18082.05 1.17 15573.83 17873.22 17676.67 19850.94 2.99 3.27 10.25 540.55 22027.29Industrial Metals & Mining (2) 3507.52 -1.92 3020.98 3576.22 3561.66 4943.02 12.69 1.60 4.92 453.68 4718.70Mining (12) 17666.34 -0.28 15215.79 17716.39 17292.81 17347.79 5.47 2.08 8.78 758.08 11205.58Industrials (100) 5292.25 0.69 4558.15 5256.00 5120.05 5605.22 2.48 0.73 55.63 50.49 5854.01Construction & Materials (15) 6370.19 0.50 5486.56 6338.65 6239.40 6378.33 2.88 0.38 91.27 128.12 7355.58Aerospace & Defense (9) 3439.93 -1.36 2962.76 3487.26 3387.36 5245.98 3.72 -1.87 -14.37 60.64 3966.25General Industrials (7) 4463.40 0.55 3844.27 4439.04 4322.56 4828.82 3.39 0.56 52.72 25.34 5528.95Electronic & Electrical Equipment (10)10632.86 1.16 9157.94 10511.44 10282.06 9106.73 1.30 1.87 40.89 24.25 10145.52Industrial Engineering (13) 13682.55 0.27 11784.60 13646.11 13472.14 13578.83 2.58 1.44 26.88 140.51 17843.69Industrial Transportation (6) 3169.80 7.44 2730.11 2950.30 2909.49 3800.57 6.72 0.60 24.62 7.42 3214.80Support Services (40) 8638.89 1.02 7440.56 8551.64 8282.61 8568.75 1.73 2.12 27.20 58.14 9555.72Consumer Goods (42) 17463.79 0.38 15041.33 17396.93 17102.84 19900.08 4.66 1.60 13.45 484.97 14670.43Automobiles & Parts (2) 2692.62 0.10 2319.12 2689.93 2670.68 4454.85 0.91 2.98 36.79 0.00 2755.13Beverages (6) 20616.63 2.01 17756.83 20210.22 19841.92 26721.96 2.77 1.63 22.17 528.83 15829.15Food Producers (10) 6619.25 -1.95 5701.08 6751.01 6719.94 7259.60 2.70 2.08 17.78 73.60 6130.78Household Goods & Home Construction (14)14169.71 -0.53 12204.18 14245.23 13933.83 13442.54 3.83 1.71 15.31 272.34 11377.36Leisure Goods (2) 21815.48 -1.70 18789.39 22192.00 21581.85 12998.55 2.33 1.06 40.49 182.24 22691.28Personal Goods (6) 32646.53 1.01 28118.03 32320.41 31676.30 37694.25 3.12 2.90 11.04 679.19 24273.20Tobacco (2) 26893.24 -0.06 23162.80 26908.42 26636.70 32554.80 9.07 1.16 9.53 1312.48 21278.62Health Care (15) 12448.21 0.56 10721.48 12378.35 11910.68 12167.42 3.39 1.24 23.75 357.40 10781.60Health Care Equipment & Services (6) 6590.72 1.14 5676.50 6516.55 6378.58 8771.48 2.08 1.40 34.51 87.70 6042.44Pharmaceuticals & Biotechnology (9) 17537.16 0.51 15104.53 17448.73 16760.41 16516.59 3.52 1.23 23.03 530.70 13647.65Consumer Services (82) 4444.04 0.10 3827.59 4439.80 4355.14 5297.75 3.44 1.50 19.39 55.85 4533.51Food & Drug Retailers (5) 4335.08 0.98 3733.74 4293.21 4241.50 4023.97 3.08 1.12 28.97 78.41 5448.27General Retailers (25) 2145.17 0.37 1847.60 2137.33 2087.68 2070.22 2.51 2.01 19.87 8.19 2680.35Media (17) 7200.69 0.39 6201.86 7172.58 6978.89 9081.19 3.78 1.58 16.72 112.95 4844.38Travel & Leisure (35) 6600.83 -0.77 5685.21 6652.29 6564.58 9384.32 3.89 1.39 18.57 81.59 6773.06Telecommunications (6) 1547.16 -0.06 1332.55 1548.02 1515.74 2272.27 8.75 -0.44 -26.14 43.50 2092.21Fixed Line Telecommunications (3) 1329.05 0.59 1144.69 1321.28 1297.69 2064.63 13.44 1.27 5.88 3.51 1456.36Mobile Telecommunications (3) 2450.00 -0.27 2110.16 2456.74 2403.01 3514.32 7.14 -1.54 -9.11 90.67 2987.17Utilities (8) 6734.57 -1.10 5800.40 6809.61 6612.64 6359.44 6.26 0.90 17.72 275.61 9300.30Electricity (3) 7129.92 -1.41 6140.91 7231.57 7049.17 6708.56 6.52 0.81 19.00 462.14 13074.68Gas Water & Multiutilities (5) 6268.78 -1.01 5399.22 6332.95 6142.92 5926.43 6.19 0.93 17.38 212.92 8533.87Financials (308) 3770.42 -0.21 3247.42 3778.27 3725.28 4666.97 4.29 0.53 43.65 69.18 3916.14Banks (11) 1941.14 -1.28 1671.88 1966.31 1950.53 3457.51 6.81 -0.19 -77.80 0.02 1598.74Nonlife Insurance (8) 3194.55 1.91 2751.42 3134.58 3112.69 3564.58 4.59 1.39 15.61 93.58 6311.28Life Insurance/Assurance (7) 6204.38 0.16 5343.75 6194.45 6075.18 6979.76 3.87 2.22 11.65 229.31 7025.34Real Estate Investment & Services (17) 2304.70 0.31 1985.01 2297.69 2270.24 2383.82 2.40 1.92 21.77 23.89 6601.39Real Estate Investment Trusts (39) 2262.91 0.89 1949.01 2243.04 2234.89 2547.10 4.36 -0.91 -25.18 48.96 3198.35General Financial (39) 9209.28 0.14 7931.84 9195.97 8961.08 9844.82 3.63 0.93 29.43 258.32 11843.96Equity Investment Instruments (187) 10958.53 -0.39 9438.44 11001.19 10838.98 10620.63 2.59 1.29 30.03 193.73 6511.85Non Financials (302) 4053.31 -0.10 3491.06 4057.20 3958.86 4794.34 4.58 1.30 16.73 111.85 6807.12Technology (16) 2148.53 -0.69 1850.50 2163.55 2120.96 1947.83 3.15 0.09 367.15 27.72 2990.25Software & Computer Services (14) 2298.59 -0.86 1979.74 2318.52 2263.58 2146.67 3.33 -0.04 -818.07 29.57 3383.81Technology Hardware & Equipment (2) 5422.76 1.05 4670.56 5366.58 5487.58 3373.10 1.29 3.38 23.00 69.78 6731.48

Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/dayFTSE 100 5940.81 5973.62 5971.70 5988.62 5975.42 5986.96 5999.23 6020.91 6016.61 6031.20 5924.99FTSE 250 17590.66 17593.42 17564.31 17564.74 17536.66 17531.06 17543.89 17612.22 17640.32 17664.46 17492.79FTSE SmallCap 5101.99 5098.83 5098.38 5097.36 5095.04 5098.35 5100.19 5110.19 5115.22 5118.71 5092.51FTSE All-Share 3325.74 3340.41 3338.62 3346.16 3339.32 3344.37 3350.29 3362.35 3361.46 3367.97 3320.28Time of FTSE 100 Day's high:14:26:45 Day's Low07:07:30 FTSE 100 2010/11 High: 7674.56(17/01/2020) Low: 4993.89(23/03/2020)Time of FTSE All-Share Day's high:14:26:00 Day's Low07:07:00 FTSE 100 2010/11 High: 4257.93(17/01/2020) Low: 2727.86(23/03/2020)Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of theLondon Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown.For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

FT 30 INDEX

Sep 08 Sep 07 Sep 04 Sep 03 Sep 02 Yr Ago High LowFT 30 2209.50 2212.80 2174.70 2189.00 2191.10 0.00 3314.70 1337.80FT 30 Div Yield - - - - - 0.00 3.93 2.74P/E Ratio net - - - - - 0.00 19.44 14.26FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 18/02/1900Base Date: 1/7/35FT 30 hourly changes

8 9 10 11 12 13 14 15 16 High Low2212.8 2228.7 2206.3 2191.3 2399.1 2395.8 2394.3 2414 2426.7 2439.2 2366.1

FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30

FX: EFFECTIVE INDICES

Sep 08 Sep 07 Mnth Ago Sep 09 Sep 08 Mnth Ago

Australia - - -Canada - - -Denmark - - -Japan - - -New Zealand - - -Norway - - -

Sweden - - -Switzerland - - -UK 77.67 78.40 77.93USA - - -Euro - - -

Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100.Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk

FTSE SECTORS: LEADERS & LAGGARDS

Year to date percentage changesLeisure Goods 29.77Tech Hardware & Eq 26.13Electronic & Elec Eq 0.50Food & Drug Retailer -2.75Equity Invest Instr -3.60Personal Goods -4.38Mining -4.88Pharmace & Biotech -5.29Basic Materials -5.78Technology -6.29Chemicals -6.51Household Goods & Ho -7.45Health Care -7.47Industrial Eng -8.63Software & Comp Serv -8.65Support Services -9.16Industrial Metals & -12.49

General Retailers -13.31Gas Water & Multi -13.88Utilities -14.36Industrials -14.58FTSE SmallCap Index -14.85Consumer Goods -15.07Construct & Material -15.53Electricity -15.96Nonlife Insurance -16.05Food Producers -16.78Financial Services -17.78Forestry & Paper -18.82NON FINANCIALS Index -20.55FTSE 250 Index -20.70Beverages -21.85FTSE All{HY-}Share Index -22.46Real Est Invest & Se -22.70Tobacco -22.76

FTSE 100 Index -23.11Consumer Services -23.35Health Care Eq & Srv -24.52Media -24.84Real Est Invest & Tr -25.88Life Insurance -26.03Industrial Transport -26.04Financials -27.60Mobile Telecomms -27.93Telecommunications -33.32Aerospace & Defense -35.04Travel & Leisure -35.12Fixed Line Telecomms -45.10Banks -47.79Oil Equipment & Serv -48.53Oil & Gas -50.21Oil & Gas Producers -50.23Automobiles & Parts -51.42

FTSE GLOBAL EQUITY INDEX SERIES

Sep 9 No of US $ Day Mth YTD Total YTD Gr DivRegions & countries stocks indices % % % retn % Yield

Sep 9 No of US $ Day Mth YTD Total YTD Gr DivSectors stocks indices % % % retn % Yield

FTSE Global All Cap 8857 629.05 -1.9 -0.2 -1.2 964.64 0.4 2.2FTSE Global All Cap 8862 644.62 1.1 5.3 1.3 987.78 2.8 2.1FTSE Global Large Cap 1770 571.45 -2.1 0.2 0.7 902.53 2.4 2.2FTSE Global Mid Cap 2176 776.68 -1.6 -0.7 -6.3 1120.08 -5.1 2.0FTSE Global Small Cap 4911 807.27 -1.6 -2.3 -6.7 1120.45 -5.5 1.9FTSE All-World 3946 371.32 -2.0 0.1 -0.5 602.58 1.1 2.2FTSE World 2592 659.10 -2.1 0.0 -0.8 1435.39 0.8 2.2FTSE Global All Cap ex UNITED KINGDOM In 8555 665.22 -2.0 -0.1 0.0 1001.82 1.6 2.1FTSE Global All Cap ex USA 7083 487.15 -0.7 0.9 -6.1 814.94 -4.2 2.8FTSE Global All Cap ex JAPAN 7508 648.85 -2.2 -0.5 -1.0 1004.71 0.6 2.2FTSE Global All Cap ex Eurozone 8210 662.01 -2.0 -0.3 -0.5 994.10 1.0 2.1FTSE Developed 2167 604.70 -2.1 0.1 -0.1 934.79 1.4 2.2FTSE Developed All Cap 5625 628.08 -2.1 -0.2 -0.9 957.32 0.6 2.1FTSE Developed Large Cap 880 570.37 -2.2 0.2 1.2 897.36 2.8 2.2FTSE Developed Europe Large Cap 232 348.44 -1.4 0.2 -9.3 649.18 -7.1 3.1FTSE Developed Europe Mid Cap 355 587.60 -1.5 -0.1 -7.1 957.01 -5.6 2.4FTSE Dev Europe Small Cap 693 797.85 -1.2 0.5 -11.2 1252.05 -9.8 2.3FTSE North America Large Cap 253 735.82 -3.1 -0.3 5.6 1068.89 7.0 1.8FTSE North America Mid Cap 411 896.10 -2.1 -2.2 -5.3 1200.00 -4.2 1.7FTSE North America Small Cap 1297 888.47 -2.2 -4.1 -6.9 1149.24 -6.0 1.6FTSE North America 664 475.33 -2.9 -0.6 3.6 705.51 5.0 1.8FTSE Developed ex North America 1503 253.59 -0.5 1.4 -6.8 456.85 -4.9 2.9FTSE Japan Large Cap 179 390.48 0.8 4.2 -1.6 542.78 -0.2 2.4FTSE Japan Mid Cap 327 585.33 1.4 6.3 -6.9 772.81 -5.6 2.2FTSE Global wi JAPAN Small Cap 843 640.32 1.6 5.6 -8.0 876.36 -6.6 2.3FTSE Japan 506 162.75 0.9 4.6 -2.6 253.31 -1.3 2.3FTSE Asia Pacific Large Cap ex Japan 926 742.03 -0.2 0.6 2.1 1279.82 4.2 2.6FTSE Asia Pacific Mid Cap ex Japan 836 858.00 -0.8 1.3 -0.9 1419.30 1.0 2.7FTSE Asia Pacific Small Cap ex Japan 1785 565.59 -0.4 0.0 4.1 915.20 6.2 2.6FTSE Asia Pacific Ex Japan 1762 578.76 -0.3 0.7 1.9 1060.34 3.9 2.6FTSE Emerging All Cap 3232 763.15 -0.8 0.0 -3.4 1250.59 -1.3 2.5FTSE Emerging Large Cap 890 737.61 -0.8 0.2 -2.6 1216.53 -0.6 2.5FTSE Emerging Mid Cap 889 876.73 -0.8 0.0 -9.9 1434.62 -7.8 2.9FTSE Emerging Small Cap 1453 735.32 -0.6 -1.0 -2.7 1156.33 -0.5 2.8FTSE Emerging Europe 75 304.48 -1.8 -6.2 -30.8 566.09 -28.4 6.0FTSE Latin America All Cap 244 662.11 -2.1 -1.2 -32.8 1122.84 -31.7 2.8FTSE Middle East and Africa All Cap 327 566.16 -0.3 1.6 -17.9 975.28 -15.7 3.6FTSE Global wi UNITED KINGDOM All Cap In 302 274.91 -1.3 -1.6 -23.1 521.88 -21.3 4.7FTSE Global wi USA All Cap 1774 812.09 -2.9 -1.0 2.9 1138.83 4.2 1.7FTSE Europe All Cap 1429 410.73 -1.4 0.0 -9.7 735.33 -7.7 3.0FTSE Eurozone All Cap 647 402.00 -1.6 0.7 -7.6 717.69 -5.7 2.5FTSE EDHEC-Risk Efficient All-World 3946 407.28 -1.5 -0.4 -5.9 610.19 -4.4 2.5FTSE EDHEC-Risk Efficient Developed Europe 587 318.98 -1.5 0.5 -5.6 529.98 -4.0 2.6Oil & Gas 146 225.17 -3.0 -7.0 -38.1 415.37 -35.7 6.1Oil & Gas Producers 104 211.47 -3.2 -7.7 -40.1 398.81 -37.8 6.4

Oil Equipment & Services 32 175.99 -2.2 -2.2 -34.3 292.72 -31.8 5.9Basic Materials 349 521.35 -0.9 -0.9 1.4 880.77 4.0 3.0Chemicals 159 758.65 -0.8 -0.8 1.1 1269.32 3.4 2.7Forestry & Paper 20 251.12 -1.3 -1.3 -9.7 475.67 -7.2 3.0Industrial Metals & Mining 92 338.54 -1.5 -1.5 -10.5 574.05 -8.4 3.5Mining 78 801.58 -0.5 -0.5 10.0 1387.21 13.5 3.4Industrials 747 442.64 -1.3 -1.3 -1.4 679.09 0.0 1.9Construction & Materials 147 535.76 -1.1 -1.1 -3.4 862.79 -1.8 1.9Aerospace & Defense 37 632.38 -2.9 -2.9 -29.4 955.88 -28.5 2.3General Industrials 67 206.45 -1.6 -1.6 -9.4 346.86 -7.7 2.7Electronic & Electrical Equipment 142 524.91 -0.4 -0.4 3.1 731.05 4.4 1.6Industrial Engineering 142 870.62 -0.8 -0.8 5.0 1329.09 6.6 1.8Industrial Transportation 125 814.29 -1.2 -1.2 7.5 1258.17 9.1 1.9Support Services 87 548.98 -1.7 -1.7 8.8 794.29 9.8 1.3Consumer Goods 535 518.10 -1.9 -1.9 1.5 831.45 3.2 2.4Automobiles & Parts 126 422.05 -5.1 -5.1 10.8 660.22 12.4 2.0Beverages 67 642.30 -1.5 -1.5 -9.3 1039.67 -7.8 2.6Food Producers 131 690.62 -1.4 -1.4 1.3 1133.43 3.3 2.4Household Goods & Home Construction 58 545.05 -1.1 -1.1 7.6 870.06 9.5 2.3Leisure Goods 42 275.28 -1.3 -1.3 13.7 378.19 14.6 1.1Personal Goods 98 903.32 -0.5 -0.5 0.2 1341.42 1.3 1.6Tobacco 13 859.62 -0.6 -0.6 -13.7 2114.42 -10.3 7.1Health Care 279 632.64 -1.1 -1.1 3.6 970.53 5.1 1.9Health Care Equipment & Services 96 1219.67 -1.3 -1.3 4.0 1465.68 4.6 0.8Pharmaceuticals & Biotechnology 183 422.85 -1.0 -1.0 3.0 688.95 5.0 2.4Consumer Services 450 623.45 -1.9 -1.9 11.8 871.69 12.7 1.2Food & Drug Retailers 67 270.82 -0.7 -0.7 -8.2 408.58 -6.3 2.7General Retailers 147 1183.34 -2.8 -2.8 30.7 1591.29 31.5 0.7Media 85 390.56 -0.6 -0.6 1.6 549.46 2.4 1.3Travel & Leisure 151 437.42 -0.4 -0.4 -15.6 625.05 -14.6 2.1Telecommunication 96 144.26 -0.5 -0.5 -10.1 310.54 -7.2 4.7Fixed Line Telecommuniations 43 114.79 -0.4 -0.4 -15.2 277.08 -12.1 5.7Mobile Telecommunications 53 162.42 -0.6 -0.6 -2.6 306.25 -0.3 3.4Utilities 189 292.07 -0.9 -0.9 -8.1 636.15 -5.7 3.6Electricity 132 328.84 -0.7 -0.7 -7.6 705.98 -5.2 3.6Gas Water & Multiutilities 57 291.89 -1.2 -1.2 -9.1 656.42 -6.7 3.5Financials 863 217.50 -1.4 -1.4 -17.8 392.30 -15.9 3.3Banks 279 152.03 -1.3 -1.3 -28.8 300.61 -26.9 4.5Nonlife Insurance 74 269.21 -1.2 -1.2 -12.8 421.30 -11.0 2.3Life Insurance 56 197.71 -0.7 -0.7 -18.1 352.62 -15.4 3.7Financial Services 211 356.80 -2.2 -2.2 -3.6 522.33 -2.3 2.0Technology 292 445.20 -3.8 -3.8 23.8 569.55 24.8 1.0Software & Computer Services 154 753.88 -3.7 -3.7 24.0 901.39 24.6 0.6Technology Hardware & Equipment 138 344.32 -3.9 -3.9 23.8 469.32 25.3 1.5Alternative Energy 10 168.88 -2.6 -2.6 33.4 240.02 35.4 1.1Real Estate Investment & Services 162 326.10 -0.3 -0.3 -11.7 597.57 -9.4 3.1Real Estate Investment Trusts 81 431.07 -1.1 -1.1 -13.1 937.66 -11.1 4.0FTSE Global Large Cap 1770 585.76 1.1 1.1 3.2 924.45 4.9 2.2

The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/mid cap) - please see www.ftse.com/geis. The trade names Fundamental Index® and RAFI® are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC(US Patent Nos. 7,620,577; 7,747,502; 7,778,905; 7,792,719; Patent Pending Publ. Nos. US-2006-0149645-A1, US-2007-0055598-A1, US-2008-0288416-A1, US-2010- 0063942-A1, WO 2005/076812, WO 2007/078399 A2,WO 2008/118372, EPN 1733352, and HK1099110). ”EDHEC™” is a trade mark of EDHEC Business School As of January 2nd 2006, FTSE is basing its sector indices on the Industrial Classification Benchmark - please seewww.ftse.com/icb. For constituent changes and other information about FTSE, please see www.ftse.com. © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the London Stock ExchangeGroup companies and is used by FTSE International Limited under licence.

FTSE 100 SUMMARY

Closing Day'sFTSE 100 Price Change

Closing Day'sFTSE 100 Price Change

3I Group PLC 925.80 19.20Admiral Group PLC 2661 57.00Anglo American PLC 1873.4 9.00Antofagasta PLC 1097 10.50Ashtead Group PLC 2844 144.00Associated British Foods PLC 1933 -26.00Astrazeneca PLC 8386 38.00Auto Trader Group PLC 552.20 1.00Avast PLC 550.00 -3.00Aveva Group PLC 4896 59.00Aviva PLC 287.90 3.90Bae Systems PLC 514.60 1.40Barclays PLC 104.88 0.60Barratt Developments PLC 500.60 -2.20Berkeley Group Holdings (The) PLC 4446 -33.00Bhp Group PLC 1719.6 29.40BP PLC 262.25 3.75British American Tobacco PLC 2668.5 93.50British Land Company PLC 353.90 -0.40Bt Group PLC 110.00 5.85Bunzl PLC 2398 6.00Burberry Group PLC 1481.5 -18.50Coca-Cola Hbc AG 2073 23.00Compass Group PLC 1252.5 -4.50Crh PLC 2866 68.00Croda International PLC 6050 114.00Dcc PLC 6408 82.00Diageo PLC 2646 45.50Evraz PLC 328.40 7.00Experian PLC 2983 59.00Ferguson PLC 7368 118.00Flutter Entertainment PLC 11370 20.00Fresnillo PLC 1317.5 18.50Glaxosmithkline PLC 1532.6 39.80Glencore PLC 174.98 0.68Gvc Holdings PLC 839.40 18.60Halma PLC 2270 55.00Hargreaves Lansdown PLC 1645 13.00Hikma Pharmaceuticals PLC 2641 47.00Homeserve PLC 1280 -3.00HSBC Holdings PLC 327.70 6.40Imperial Brands PLC 1360.5 34.00Informa PLC 396.60 -5.40Intercontinental Hotels Group PLC 4356 -121.00Intermediate Capital Group PLC 1279 9.00International Consolidated Airlines Group S.A. 200.40 -7.40Intertek Group PLC 6076 30.00Itv PLC 62.60 -1.86Jd Sports Fashion PLC 817.80 22.00Johnson Matthey PLC 2608 50.00Just Eat Takeaway.Com N.V. 8298 40.00

Kingfisher PLC 275.90 0.20Land Securities Group PLC 546.20 1.60Legal & General Group PLC 198.35 -4.75Lloyds Banking Group PLC 26.48 0.02London Stock Exchange Group PLC 8928 170.00M&G PLC 157.00 -3.05Melrose Industries PLC 119.50 0.50Mondi PLC 1493 21.00Morrison (Wm) Supermarkets PLC 195.00 1.70National Grid PLC 859.20 7.80Natwest Group PLC 103.85 -0.45Next PLC 5848 -8.00Ocado Group PLC 2302 -47.00Pearson PLC 546.60 9.20Pennon Group PLC 1040 5.00Persimmon PLC 2471 -41.00Phoenix Group Holdings PLC 696.60 6.40Polymetal International PLC 1945.5 -28.00Prudential PLC 1159.5 0.50Reckitt Benckiser Group PLC 7504 208.00Relx PLC 1790 28.50Rentokil Initial PLC 546.60 9.80Rightmove PLC 619.00 -3.00Rio Tinto PLC 4790 90.00Rolls-Royce Holdings PLC 210.70 -8.20Royal Dutch Shell PLC 1087.2 22.00Royal Dutch Shell PLC 1041.6 18.00Rsa Insurance Group PLC 462.20 3.20Sage Group PLC 726.80 14.00Sainsbury (J) PLC 191.80 4.10Schroders PLC 2816 45.00Scottish Mortgage Investment Trust PLC 907.50 22.50Segro PLC 944.80 7.00Severn Trent PLC 2410 3.00Smith & Nephew PLC 1565.5 12.50Smith (Ds) PLC 290.00 -4.80Smiths Group PLC 1422 8.00Smurfit Kappa Group PLC 2814 6.00Spirax-Sarco Engineering PLC 10435 65.00Sse PLC 1225 11.00St. James's Place PLC 971.60 0.20Standard Chartered PLC 386.70 11.10Standard Life Aberdeen PLC 238.30 3.60Taylor Wimpey PLC 112.85 -1.95Tesco PLC 223.60 3.20Unilever PLC 4743 175.00United Utilities Group PLC 858.60 5.80Vodafone Group PLC 109.50 2.30Whitbread PLC 2364 -87.00Wpp PLC 631.40 1.60

UK STOCK MARKET TRADING DATA

Sep 09 Sep 08 Sep 07 Sep 04 Sep 03 Yr Ago- - - - - -

Order Book Turnover (m) 50.13 41.29 43.16 43.16 43.16 37.11Order Book Bargains 898697.00 619892.00 940098.00 940098.00 940098.00 911256.00Order Book Shares Traded (m) 1373.00 1186.00 1293.00 1293.00 1293.00 1427.00Total Equity Turnover (£m) 4569.31 3027.48 3729.71 3729.71 3729.71 4376.80Total Mkt Bargains 1116825.00 826195.00 1190386.00 1190386.00 1190386.00 1176484.00Total Shares Traded (m) 10001.00 10950.00 16734.00 16734.00 16734.00 10482.00† Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.(c) Market closed.

All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believedaccurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant norguarantee that the information is reliable or complete. The FT does not accept responsibility and will not beliable for any loss arising from the reliance on or use of the listed information.For all queries e-mail [email protected]

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

UK RIGHTS OFFERS

Amount LatestIssue paid renun. closingprice up date High Low Stock Price p +or-There are currently no rights offers by any companies listed on the LSE.

UK COMPANY RESULTS

Company Turnover Pre-tax EPS(p) Div(p) Pay day TotalAnglo African Oil & Gas Int 0.000 0.000 0.462L 2.212L 0.140L 1.030L 0.00000 0.00000 - 0.000 0.000Anpario Int 16.173 14.285 2.378 2.253 9.310 9.160 0.00000 2.50000 - 5.470 7.500Aquis Exchange Int 4.851 3.419 0.012 0.621L 0.040 2.000L 0.00000 0.00000 - 0.000 0.000Argo Blockchain Int 11.124 2.933 0.523 0.947 0.180 0.320 0.00000 0.00000 - 0.000 0.000Computacenter Int 2462.184 2427.014 72.408 50.849 46.000 33.600 0.00000 10.10000 - 0.000 31.700CQS Natural Resources Growth and Income Pre 7.995L 13.177L 12.000L 19.720L 1.82000 1.82000 Aug 28 3.080 3.080EMIS Group Int 78.118 79.778 17.716 12.077 22.900 16.600 0.00000 15.60000 - 15.515 29.800Frontier Developments Pre 76.089 89.669 16.223 19.658 41.300 46.900 0.00000 0.00000 - 0.000 0.000i3 Energy Int 0.000 0.000 6.794L 4.363L 6.000L 7.000L 0.00000 0.00000 - 0.000 0.000Inspired Energy Int 26.855 21.559 1.420 2.387 0.149 0.259 0.00000 0.21939 - 0.000 0.678M Winkworth Int 2.544 2.648 0.461 0.577 2.870 3.640 1.40000 1.90000 Aug 20 3.489 3.800New Trend Lifestyle Group Pre 6.670 6.491 0.011L 0.360L 0.001L 0.003L 0.00000 0.00000 - 0.000 0.000Newmark Security Pre 18.767 19.583 0.231 0.214 0.240 0.040 0.00000 0.00000 - 0.000 0.000Rockfire Resources Int 0.000 0.000 0.274L 0.290L 0.030L 0.070L 0.00000 0.00000 - 0.000 0.000

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

UK RECENT EQUITY ISSUES

Issue Issue Stock Close Mktdate price(p) Sector code Stock price(p) +/- High Low Cap (£m)09/02 200.00 AIM KOO Kooth PLC 240.00 0.00 245.00 227.00 7933.408/03 1.70 CCZ Castillo Copper Ltd 2.45 -0.07 2.88 1.75 2474.307/31 45.00 AIM AEXG AEX Gold Inc 45.50 -0.20 53.00 44.00 8058.0

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

MARKET DATA

SEPTEMBER 10 2020 Section:Stats Time: 9/9/2020 - 18:36 User: gerry.white Page Name: MARKET DATA 1, Part,Page,Edition: EUR, 13, 1


MARKET DATA

FT500: THE WORLD'S LARGEST COMPANIES52 Week

Stock Price Day Chg High Low Yld P/E MCap m52 Week





Stock Price Day Chg High Low Yld P/E MCap m

Australia (A$)ANZ 17.81 -0.55 28.79 14.10 7.93 13.00 36735.16BHPBilltn 36.78 -0.63 41.47 24.05 4.86 14.65 78796.55CmwBkAu 66.79 -1.70 91.05 53.44 6.12 15.48 85986.07CSL 281.00 -7.18 342.75 227.26 0.90 46.85 92960.94NatAusBk 17.44 -0.46 30.00 13.20 8.40 17.69 41729.14Telstra 2.86 -0.06 3.94 2.81 3.32 17.43 24737.35Wesfarmers 45.08 -1.12 49.67 29.75 3.75 27.06 37172.39Westpc 17.07 -0.59 30.05 13.47 8.99 14.52 44836.11Woolworths 36.81 -0.56 43.96 32.12 2.63 34.82 33813.14Belgium (€)AnBshInBv 48.32 0.64 89.71 29.03 2.66 -98.60 96608.44KBC Grp 47.43 0.21 73.56 33.44 2.11 13.42 23322.35Brazil (R$)Ambev 12.25 -0.10 19.76 10.36 4.29 17.77 36367.95Bradesco 20.02 0.09 32.45 14.05 1.18 6.84 16752.51Cielo 4.69 -0.01 9.07 3.23 1.68 17.96 2404.06ItauHldFin 23.28 0.04 32.79 19.46 3.53 11.82 21778.45Petrobras♦ 22.88 0.36 33.65 10.50 2.32 - 32128.03Vale 59.60 0.33 63.88 32.45 3.29 42.75 59423.71Canada (C$)BCE 56.76 0.31 65.45 46.03 5.49 17.73 38962.83BkMontrl 80.97 0.81 104.75 55.76 5.05 11.06 39520.75BkNvaS 55.48 0.63 76.75 46.38 6.29 9.33 51017.2Brookfield 43.41 0.44 60.48 31.35 1.40 40.92 51856.79CanadPcR 389.53 9.89 398.00 252.00 0.87 22.64 40073.02CanImp 104.54 0.97 115.96 67.52 5.37 11.75 35352.24CanNatRs 24.01 0.38 42.57 9.80 6.26 9.30 21524.77CanNatRy♦ 136.94 2.32 140.87 92.01 1.65 26.65 73946.86Enbridge 41.91 0.68 57.32 33.06 7.52 43.81 64426.81GtWesLif 26.73 0.44 35.60 18.88 6.48 9.97 18822.7ImpOil♦ 19.98 0.34 36.99 10.27 4.48-490.70 11130.39Manulife♦ 19.39 0.33 27.78 12.58 5.56 9.72 28545.76Nutrien 49.58 0.74 69.52 34.80 4.96 22.86 21419.66RylBkC 97.52 1.23 109.68 72.00 4.21 12.77 105364.03Suncor En♦ 18.65 0.13 45.12 14.02 8.27 -5.21 21585.28ThmReut 100.83 1.16 109.99 75.91 2.03 23.24 38004.91TntoDom 63.72 0.65 77.72 49.01 4.62 11.44 87246.94TrnCan 61.17 1.56 76.58 47.05 4.85 14.33 43642.51ValeantPh 30.80 -1.06 36.02 14.01 - -4.10 8158.48China (HK$)AgricBkCh 2.57 -0.03 3.50 2.49 7.77 3.74 10192.69Bk China 2.57 -0.01 3.39 2.48 8.26 3.68 27728.31BkofComm 3.99 -0.01 5.68 3.91 8.62 3.59 18024.46BOE Tech 0.66 0.06 0.80 0.47 - -10.25 16.94Ch Coms Cons 4.11 -0.05 6.77 4.05 6.61 3.42 2347.86Ch Evrbrght 2.71 -0.04 3.97 2.65 6.81 3.82 4433.12Ch Rail Cons 5.76 - 9.99 5.67 4.18 4.00 1543.06Ch Rail Gp 3.84 0.05 5.34 3.45 3.83 3.60 2084.55ChConstBk 5.50 -0.09 6.85 5.30 6.40 4.53 170607.34China Vanke 24.75 0.25 34.75 21.65 4.85 6.21 6046.7ChinaCitic 3.22 - 4.79 3.17 8.19 3.12 6182.94ChinaLife 18.36 -0.40 22.90 11.64 0.95 8.20 17627.25ChinaMBank 38.55 0.15 43.40 29.80 2.80 9.05 22834.54ChinaMob 53.85 0.30 70.00 45.20 5.30 9.52 142262.43ChinaPcIns 22.10 -0.10 33.20 17.90 5.20 5.69 7913.57ChMinsheng 4.64 -0.02 6.06 4.60 8.56 3.27 4981.11ChMrchSecs 20.67 -0.77 26.04 13.10 1.07 26.77 22409.11Chna Utd Coms 5.08 -0.04 6.96 4.82 1.06 32.60 15953.79ChShenEgy 13.24 -0.16 17.18 11.94 7.85 5.68 5805.73ChShpbldng 4.69 0.03 6.20 3.98 0.194790.91 12525.76ChStConEng 5.04 -0.07 6.20 4.76 3.37 5.36 30370.9ChUncHK 5.42 0.07 8.76 3.84 2.76 13.42 21397.57CNNC Intl 4.65 -0.03 5.54 4.02 2.61 17.47 10572.53CSR 3.23 -0.01 6.10 3.14 5.34 7.83 1821.64Daqin 6.56 -0.01 8.26 6.41 7.40 7.91 14245.66Gree Elec Apl 0.10 0.00 0.37 0.01 - -0.02 4.31GuosenSec 13.52 -0.16 16.14 10.38 0.90 26.72 16194.02HaitongSecs 6.73 -0.13 9.58 5.79 2.56 8.39 2960.63Hngzh HikVDT 36.10 -0.20 40.50 27.00 1.97 25.47 42688.22Hunng Pwr 3.06 -0.04 4.39 2.24 3.68 281.21 1855.76IM Baotou Stl 1.30 0.11 1.55 1.04 0.55-286.43 6015.19In&CmBkCh 4.39 -0.03 6.11 4.17 6.55 4.40 49161.88IndstrlBk 16.32 -0.19 20.42 14.93 4.28 5.10 46760.21Kweichow 1688 -23.40 1828 960.10 1.03 47.49 309737.4Midea 0.69 0.05 1.21 0.58 - -2.37 19.14New Ch Life Ins 30.30 -0.70 37.30 20.45 2.92 5.21 4042.77PetroChina 2.53 -0.02 4.46 2.20 6.04 21.03 6887.31PingAnIns 81.00 -0.35 101.00 69.00 2.68 9.70 77834.18PngAnBnk 15.21 -0.22 17.60 11.91 0.96 10.09 43114.54Pwr Cons Corp 4.01 - 4.94 3.40 2.47 9.02 6527.72SaicMtr 19.20 -0.84 26.17 16.90 6.64 12.00 32766.97ShenwanHong 0.04 0.00 0.13 0.03 - -0.17 48.61ShgPdgBk 10.01 -0.04 13.33 9.82 3.54 5.18 42917.81Sinopec Corp 3.42 -0.06 5.15 3.20 13.01 15.39 11258.06Sinopec Oil 2.01 0.07 2.61 1.67 - 71.03 3535.73Denmark (kr)DanskeBk 90.10 0.78 123.60 68.04 - 8.53 12329.44MollerMrsk 9932 188.00 10555 4976 1.47 39.57 14869.07NovoB 419.70 9.05 456.30 328.70 1.93 25.31 120739.78

Finland (€)Nokia 3.58 0.00 4.84 2.08 1.40 32.91 23869.18SampoA 34.71 0.56 42.46 21.34 4.32 23.44 22714.2France (€)Airbus Grpe 69.39 -1.39 139.40 48.12 - -12.08 64248.48AirLiquide 142.25 2.95 143.90 94.86 1.90 29.80 79547.96AXA 17.44 0.49 25.62 11.84 7.17 12.31 49787.36BNP Parib 36.79 0.37 54.22 24.51 - 6.62 54298ChristianDior 363.80 4.00 484.60 252.40 1.59 23.97 77548.25Cred Agr 8.66 0.14 13.80 5.70 7.76 6.15 29493.78Danone 57.58 1.16 81.82 50.26 3.14 20.93 46688.31EDF 8.52 0.39 13.61 5.98 1.76 16.07 31241.08Engie SA 11.93 0.16 16.80 8.63 - -26.48 34294.32EssilorLuxottica 111.65 0.60 145.00 86.76 1.70 49.06 57694.52Hermes Intl 735.80 3.60 788.20 516.00 0.62 69.63 91730.11LOreal 282.60 6.70 297.20 196.00 1.36 48.86 186684.97LVMH 404.05 -0.35 439.05 278.70 1.19 45.94 240841.75Orange 9.60 0.44 15.38 8.84 5.21 9.79 30168.74PernodRic 142.00 1.40 174.75 112.25 2.05 27.58 43913.6Renault 25.27 0.12 58.10 12.77 - -0.81 8824.77Safran 97.44 -0.78 152.30 51.10 - 62.42 49160.81Sanofi 88.12 2.42 95.82 67.65 3.58 9.95 131006.39Sant Gbn 35.68 0.65 39.57 16.41 3.48 14.83 22950.03Schneider 107.15 2.90 108.25 61.72 2.38 27.10 71753.28SFR Group 34.50 - 34.56 21.87 - -23.02 17905.81SocGen 13.18 0.16 32.23 11.35 - -14.80 13284.14Total 32.74 0.39 50.93 21.12 8.10 -28.71 102577.07UnibailR 190.00 0.35 236.45 177.35 2.94 -7.05 22215.04Vinci 80.18 0.90 107.35 54.76 2.55 28.02 57985.46Vivendi 24.44 0.38 26.42 16.60 2.46 16.09 34215.75Germany (€)Allianz 183.90 4.38 232.60 117.10 4.77 10.76 90596.58BASF 54.73 0.76 72.17 37.36 6.03 47.67 59362Bayer 55.60 0.59 78.34 44.86 5.04 -7.49 64504.18BMW 63.74 0.57 77.06 36.60 5.35 8.77 45312.61Continental 93.40 -0.50 133.10 51.45 - -6.83 22059.92Daimler 46.39 0.82 54.50 21.02 - -165.57 58607.9Deut Bank 8.01 0.15 10.37 4.45 - -6.30 19554.55Deut Tlkm 15.41 0.42 16.75 10.41 - 19.29 86619.5DeutsPost 38.97 0.70 40.12 19.11 2.87 23.12 56903.76E.ON 10.05 0.23 11.56 7.60 3.99 44.89 31347.36Fresenius Med 71.90 1.24 81.10 53.50 - 16.41 25848.79Fresenius SE 38.46 0.44 51.54 24.25 - 11.72 20532.86HenkelKgaA 76.90 2.40 90.30 54.65 2.22 17.21 23592.43Linde 211.50 3.80 221.70 130.45 1.55 56.52 131214.38MuenchRkv 253.60 10.30 284.20 141.10 3.55 16.08 41956.39SAP 137.52 4.08 143.32 82.13 1.15 35.98 199506.26Siemens 118.14 2.70 120.66 58.77 3.22 21.13 118585.04Volkswgn 161.90 3.50 185.00 99.16 2.89 7.69 56417.66Hong Kong (HK$)AIA 81.05 -0.15 87.80 60.05 1.41 19.35 126466.29BOC Hold 22.35 - 28.90 20.30 6.41 7.52 30488.51Ch OSLnd&Inv 21.35 -0.10 31.00 21.10 4.34 5.15 30179.46ChngKng♦ 41.20 0.05 57.85 33.40 4.62 5.35 19633.34Citic Ltd 6.82 -0.01 10.74 6.75 6.30 3.78 25597.69Citic Secs 17.62 -0.24 21.45 12.60 2.28 15.69 5179.55CK Hutchison♦ 48.75 -0.35 76.00 45.05 6.35 4.83 24255.45CNOOC 8.15 -0.15 14.04 6.24 8.73 5.45 46949.03HangSeng 121.80 -0.40 179.70 114.00 6.25 9.77 30044.84HK Exc&Clr 367.60 -0.40 397.80 206.00 1.80 50.42 60132.49MTR♦ 39.95 - 48.10 36.20 2.93 21.10 31845.88SandsCh 32.65 0.15 45.45 25.15 5.91 17.08 34078.29SHK Props 100.10 0.95 124.00 87.60 4.83 7.46 37425.7Tencent 504.00 -4.50 564.00 314.60 0.20 44.90 623146.54India (Rs)Bhartiartl 504.25 6.15 612.00 325.50 - -5.69 37403.9HDFC Bk 1096.5 -15.95 1305.5 738.75 - 21.58 82044.64Hind Unilevr 2132.25 -10.00 2614.3 1757.3 1.20 67.10 68117.09HsngDevFin 1760.75 -16.55 2499.9 1473.45 1.02 13.62 42919.76ICICI Bk 367.60 -8.10 552.20 268.30 0.28 23.17 34464.68Infosys 927.75 -11.55 986.45 509.25 1.98 21.80 53729.29ITC 183.80 -4.35 266.30 134.60 5.66 15.24 30750.38L&T 909.50 -7.20 1551 661.00 3.16 15.93 17361.25OilNatGas 72.70 -1.75 149.65 50.00 9.74 4.23 12435.35RelianceIn 2161.35 54.25 2196 867.40 0.61 31.67 198716.7SBI NewA 194.85 -9.20 351.00 149.45 - 7.86 23644.06SunPhrmInds 509.30 7.40 564.75 312.00 1.16 164.56 16614.87Tata Cons 2327.65 -20.55 2390.45 1506.05 1.45 27.30 118756.41Indonesia (Rp)Bk Cent Asia 22300 200.00 24700 16800 - - 38879.26Israel (ILS)TevaPha 31.38 0.02 46.45 23.05 - 871.13 10176.98Italy (€)Enel 7.65 0.18 8.61 5.15 3.82 37.40 91856.77ENI 7.63 0.11 14.60 6.26 10.73 -7.25 32736.45Generali 12.95 0.27 19.63 10.20 3.86 11.16 24102.08IntSPaolo 1.79 0.03 2.63 1.31 10.72 7.50 40725.18Unicred 8.12 0.25 14.44 6.01 3.24 -9.80 21415.69

Japan (¥)AstellasPh 1615 -20.00 1987 1406 2.56 15.04 28303.17Bridgestne 3369 -39.00 4734 2861.5 4.90 9.14 22633.3Canon 1741 -14.00 3117 1676 7.14 24.68 21857.98CntJpRwy 15915 -125.00 23455 12380 0.97 7.61 30860.73Denso 4473 -27.00 5174 3021 3.23 49.33 33176.24EastJpRwy 6887 70.00 10830 5888 2.48 -52.03 24500.59Fanuc 20620 -170.00 22030 12020 1.15 52.34 39192.67FastRetail 66530 -710.00 70180 39910 0.75 69.40 66428.96Fuji Hvy Ind 2182 -73.50 3184 1671.5 4.73 10.63 15798.39Hitachi 3615 13.00 4693 2524 2.39 18.13 32935.52HondaMtr 2643 -57.00 3259 2120 4.37 9.85 45066.18JapanTob 1976.5 0.50 2555 1796.5 8.07 11.50 37209.96KDDI 2926.5 -27.00 3451 2658 4.07 9.90 63474.2Keyence 44150 -10.00 46910 28905 0.35 54.93 101074.21MitsbCp 2556 -26.00 2960.5 2094.5 5.33 7.13 35746.31MitsubEst 1625 -36.50 2283 1291 2.10 14.50 21282.15MitsubishiEle 1461 -9.50 1658 1096.5 2.82 13.69 29529.45MitsuiFud 1934 -45.00 3035 1538 2.35 9.96 17572.88MitUFJFin 431.90 -11.30 603.00 380.00 5.97 17.84 55217.87Mizuho Fin 139.00 -4.10 173.10 108.40 5.59 30.91 33224.05Murata Mfg 6510 -103.00 6920 4602 1.54 22.06 41411.95NipponTT 2360.5 -29.00 2908 2153 4.15 9.90 86674.01Nissan Mt 413.50 -7.50 721.70 311.20 2.51 -1.62 16428.33Nomura 533.40 -5.40 586.40 367.40 3.24 7.34 17540.97Nppn Stl 1143.5 12.50 1786.5 798.10 4.53 5.76 10229.14NTTDCMo 2846 -44.00 3475 2700 4.35 15.33 86493.88Panasonic 962.30 -1.10 1264 691.70 3.23 13.05 22224.92Seven & I 3269 -54.00 4485 2937.5 3.12 15.47 27277.06ShnEtsuCh 13590 -195.00 13945 8751 1.67 17.45 53301.15Softbank 5677 -168.00 7077 2609.5 0.80 -11.70 111675.77Sony 8078 -157.00 8920 5297 0.58 14.74 95889.61SumitomoF 3042 -79.00 4145 2507.5 6.44 19.10 39345.13Takeda Ph 3815 -15.00 4562 2894.5 4.89 48.17 56609.59TokioMarine 4824 -60.00 6317 4167 4.06 12.66 31876.95Toyota 6886 -129.00 8026 5771 3.30 9.15 211502.8Mexico (Mex$)AmerMvl 13.22 0.16 16.82 12.33 2.59 33.04 27864.21FEMSA UBD 122.25 0.77 188.80 120.10 1.16 75.99 12281.99WalMrtMex 51.18 0.11 62.71 47.76 1.59 28.40 41543.99Netherlands (€)Altice 3.37 0.16 6.86 2.26 - -3.05 4209.84ASML Hld 304.85 7.45 355.50 177.52 0.79 44.15 153236.69Heineken 76.98 0.66 105.00 68.82 2.18 47.78 52362.02ING 7.05 0.10 11.26 4.23 9.39 8.19 32492.58Unilever 51.48 1.79 56.83 38.42 3.19 22.97 88801.03Norway (Kr)DNB 136.00 0.25 178.10 94.26 - 10.99 23817.53Equinor 140.50 5.65 187.20 95.20 7.07 -21.14 50722.85Telenor 150.75 5.65 186.55 130.75 5.02 43.46 23379.49Qatar (QR)QatarNtBk 17.76 -0.04 21.25 15.71 3.56 12.48 45053.27Russia (RUB)Gzprm neft 185.71 -3.02 272.68 158.17 8.49 8.05 58976.64Lukoil 4745.5 -157.00 6810 3663 6.94 7.65 44107.51MmcNrlskNckl 20150 -66.00 23656 13352 12.39 7.95 42774.79Novatek 973.20 -3.20 1382.2 682.80 3.47 6.59 39639.58Rosneft 324.00 -11.00 489.90 229.80 7.81 8.59 46063.6Sberbank 188.91 -2.03 270.80 172.15 - 5.33 54705Surgutneftegas 35.13 -0.76 54.89 24.06 2.07 11.47 16833.73Saudi Arabia (SR)AlRajhiBnk 66.20 0.10 66.90 51.00 4.78 15.90 44123.93Natnlcombnk 37.00 - 50.70 30.50 9.64 9.56 29593.68SaudiBasic♦ 88.00 - 100.40 61.90 5.24 215.15 70384.98SaudiTelec 98.30 1.00 110.00 72.30 4.29 17.43 52415.48Singapore (S$)DBS 20.52 -0.13 26.80 16.65 7.36 12.13 38108.33JardnMt US$♦ 39.76 -0.07 59.68 37.37 4.55 -72.68 28939.11JardnStr US$♦ 19.66 -0.17 33.50 17.81 1.90 -23.65 21789.33OCBC 8.57 -0.03 11.23 7.80 5.64 14.68 27613.36SingTel 2.22 -0.02 3.48 2.19 7.94 33.61 26514.63UOB♦ 19.28 -0.17 27.02 17.28 5.88 10.69 23542.13South Africa (R)Firstrand 41.00 2.85 69.90 31.13 8.28 6.93 13840.18MTN Grp 60.50 0.20 105.34 26.25 10.02 10.57 6860.14Naspers N 2882.49 28.49 3583.51 1843.8 0.29 23.67 75544.23South Korea (KRW)HyundMobis 223500-2000.00 268500 126000 1.83 9.55 17867.72KoreaElePwr 20300 -200.00 29500 15550 - -8.29 10960.36SK Hynix 77300-1100.00 106000 65800 1.32 33.14 47329.34SmsungEl 58400 -300.00 62800 42300 2.48 18.20 293217.21Spain (€)BBVA 2.52 0.03 5.34 2.37 10.34 -35.93 19819.16BcoSantdr 1.88 0.03 4.04 1.77 5.31 -3.85 36987.93CaixaBnk 2.06 0.10 2.94 1.50 3.41 10.97 14515.45Iberdrola 10.63 0.14 11.52 7.76 1.58 18.69 79674.79Inditex 22.83 -0.21 32.28 18.51 0.92 29.82 84024.94Repsol 6.39 0.06 15.67 5.92 14.34 -1.33 12272.61Telefonica 3.34 0.07 7.26 3.20 11.77-166.99 21029.11

Sweden (SKr)AtlasCpcoB 362.30 9.50 381.20 223.20 1.82 28.36 16132.22Ericsson 98.00 0.94 105.10 59.54 0.76 117.89 34357.43H & M 141.20 -2.60 214.35 98.13 3.36 47.79 23534.49Investor 572.60 15.20 574.20 370.10 2.25 6.13 29760.63Nordea Bk 70.20 0.88 86.73 48.00 - 24.21 32441.78SEB 85.16 0.94 104.90 59.80 - 11.37 21087.1SvnskaHn 86.28 1.36 113.80 71.80 - 10.88 19146.86Swedbank 151.68 5.14 162.70 99.14 - 14.05 19592.71Telia Co 34.99 0.60 44.90 30.29 5.88 49.10 16328.47Volvo 171.70 2.10 175.10 95.00 - 19.05 30974.98Switzerland (SFr)ABB 24.04 0.38 24.69 14.11 3.33 37.33 57051.55CredSuisse 9.91 0.21 13.80 6.18 1.42 5.92 26551.21Nestle 110.02 1.76 112.98 83.37 2.49 23.22 346943.53Novartis 81.12 0.99 96.38 65.09 3.61 26.88 219054.26Richemont 61.44 -0.90 82.28 44.64 3.15 35.52 35104.73Roche 329.10 5.65 357.85 265.75 2.77 21.70 253079.45Swiss Re 78.40 3.12 117.05 52.68 7.43 -17.54 27245.83Swisscom 509.40 9.40 577.80 446.70 - 15.84 28883.44Syngent 453.40 0.90 471.20 402.50 - 28.99 43035.76UBS 11.30 0.23 13.28 7.00 3.07 9.56 47731.31Zurich Fin 341.40 5.20 439.90 248.70 5.01 13.75 56224.93Taiwan (NT$)Chunghwa Telecom 108.50 - 123.50 103.00 4.19 25.25 28725.9Formosa PetChem 81.20 -0.10 107.00 66.10 3.73 863.09 26399.1HonHaiPrc 77.90 0.60 101.50 65.70 5.22 10.99 36856.98MediaTek 595.00 1.00 763.00 273.00 1.54 36.54 32282.46TaiwanSem 427.00 2.00 466.50 235.50 2.97 26.62 377886.81Thailand (THB)PTT Explor 35.25 0.25 47.75 23.60 5.69 16.59 32090.81United Arab Emirates (Dhs)Emirtestele 16.58 0.06 16.98 11.04 6.68 15.42 39255.76United Kingdom (p)AscBrFd 1933 -26.00 2730 1554 2.40 21.62 19893.23AstraZen♦ 8386 38.00 10120 5871 2.66 63.18 138060.48Aviva♦ 287.90 3.90 439.40 205.70 3.30 5.24 15019.79Barclays 104.88 0.60 192.99 73.04 2.86 15.86 23264.56BP 262.25 3.75 537.00 222.90 12.69 -2.98 67946BrAmTob 2668.5 93.50 3507 34.85 5.77 9.64 64676.25BSkyB 1727.5 1.50 1740 893.50 0.76 36.60 38843.72BT 110.00 5.85 212.25 94.68 14.00 5.05 14187.82Compass 1252.5 -4.50 2113 20.62 3.19 19.30 26777.01Diageo♦ 2646 45.50 3471 2050.6 2.59 20.62 86591.79GlaxoSmh♦ 1532.6 39.80 1857 1328.19 5.22 11.53 97978.64Glencore 174.98 0.68 264.12 109.76 4.57 -8.65 32811.24HSBC 327.70 6.40 633.50 315.00 4.90-202.41 85412.36Imperial Brands♦ 1360.5 34.00 2256 1218 15.18 15.07 16867.63LlydsBkg 26.48 0.02 73.66 25.43 4.23 66.19 24803.68Natl Grid 859.20 7.80 1073.8 8.90 5.57 23.48 37490.11Natwest Group 103.85 -0.45 265.00 100.34 1.93 31.47 16154.09Prudential 1159.5 0.50 1509 682.80 4.16 20.45 38997.95ReckittB♦ 7504 208.00 8191.3 5130 2.33 -19.41 68693.98RELX 1790 28.50 2109 1382.86 2.55 27.29 44952.59RioTinto♦ 4790 90.00 5152 2954 6.38 13.43 83514.42RollsRoyce 210.70 -8.20 858.60 206.70 5.55 -3.05 5094.1RylDShlA 1087.2 22.00 2417 946.10 11.52 -9.08 64971.6Shire# 4690 111.00 4780 2944 0.58 11.63 56567.13StandCh 386.70 11.10 740.80 368.40 1.46 10.76 16572.63Tesco 223.60 3.20 332.67 203.70 3.02 23.44 23799.16Vodafone 109.50 2.30 169.46 87.11 7.00 -39.53 37968.83WPP 631.40 1.60 1085.5 450.00 9.50 12.68 10392.1United States of America ($)21stC Fox A 27.84 0.15 39.74 19.81 2.60 12.35 9566.33M 166.26 3.09 182.55 114.04 3.68 17.94 95767.55AbbottLb 106.16 3.32 114.20 61.61 1.35 58.67 187959.46Abbvie 91.55 1.33 101.28 62.55 5.17 19.04 161570.48Accenture 239.22 6.57 247.82 137.15 1.05 29.78 158771.46Adobe 475.76 13.63 536.88 255.13 - 59.69 228205.53AEP♦ 80.35 1.37 104.97 65.14 3.63 19.94 39866.09Aetna - - - - - - -Aflac 37.17 0.23 55.07 23.07 3.11 8.83 26495.39AirProd 303.36 8.84 310.74 167.43 1.73 33.45 67009.41Alexion 106.21 -1.98 121.50 72.67 - 26.92 23278.36Allergan 193.02 0.03 202.22 114.27 1.54 -25.19 63659.11Allstate♦ 92.52 1.27 125.92 64.13 2.37 6.62 28895.49Alphabet 1550.8 27.20 1726.1 1008.87 - 32.43 465969.17Altria 43.75 0.68 51.78 30.95 8.08 -86.64 81304.88Amazon 3272 122.16 3552.25 1626.03 - 119.531638910.94AmerAir 12.90 -0.74 31.67 8.25 2.45 -1.50 6557.9AmerExpr 103.71 0.04 138.13 67.00 1.74 20.41 83503.26AmerIntGrp 28.76 -0.13 58.66 16.07 4.68 -5.05 24774.84AmerTower 253.49 6.68 272.20 174.32 1.72 55.90 112440.02Amgen 245.69 4.51 264.97 177.05 2.61 19.06 143899.1Anadarko 72.77 0.56 76.23 40.40 1.50 -63.37 36563.54Anthem♦ 266.42 0.16 309.10 171.03 1.38 10.99 67006.35Aon Cp 202.53 4.53 238.19 143.93 0.91 25.60 46916.14Apple 117.85 5.03 137.98 52.77 2.74 8.792043207.25ArcherDan 45.66 0.44 47.20 28.92 3.27 13.82 25368.06

AT&T 29.60 0.09 39.70 26.08 7.36 17.16 210900AutomData 136.09 0.20 182.32 103.11 2.72 22.69 58513.99Avago Tech 358.27 7.73 378.96 155.67 3.39 62.41 144090.92BakerHu 22.08 0.09 31.26 20.09 3.39 -1.35 11412.93BankAm♦ 25.58 0.10 35.72 17.95 2.96 11.74 221584.3Baxter♦ 82.76 1.47 95.19 69.10 1.15 43.94 41893.21BB & T 54.24 0.75 55.66 40.68 3.52 16.82 41564.3BectonDick♦ 236.86 2.80 286.72 197.75 1.38 67.24 68658.26BerkshHat 330565 3365 347400 239440 - 52.85 217480.7Biogen 272.45 3.55 374.99 219.70 - 7.61 43132.51BkNYMeln 36.07 0.03 51.60 26.40 3.52 7.45 31953.03BlackRock♦ 560.04 7.50 609.69 323.98 2.53 19.81 85396.89Boeing 159.20 -1.88 391.00 89.00 4.07 -30.08 89858.55Booking Holdings 1848.59 -43.01 2094 1107.29 - 22.62 75697.23BrisMySq 59.17 0.64 68.34 45.76 3.05 89.58 133872.04CapOne 70.19 -0.17 107.59 38.00 2.39 13.23 32051.26CardinalHlth 49.50 0.23 60.69 39.05 4.08 -3.33 14475.98Carnival 17.46 -0.84 51.94 7.80 9.04 -4.00 10484.58Caterpillar 154.25 5.73 154.50 87.50 2.81 19.57 83524.68Celgene 108.24 0.11 110.70 58.59 - 12.71 77035.98CharlesSch 34.85 0.19 51.65 28.00 2.08 12.99 44909.17Charter Comms 610.63 14.13 629.52 345.67 - 55.65 125117.58Chevron Corp♦ 80.35 1.38 125.27 51.60 6.49 -16.46 150034.97Chubb 122.36 1.25 167.74 87.35 2.61 24.28 55229.13Cigna 173.20 -0.79 224.64 118.50 0.02 12.68 63597.31Cisco 40.29 0.29 50.30 32.40 3.61 15.45 170543.54Citigroup 51.10 0.06 83.11 32.00 4.20 8.37 106390.79CME Grp♦ 168.01 1.01 225.36 131.80 2.00 24.09 60250.59Coca-Cola 50.34 0.53 60.13 36.27 3.39 22.57 216210.92Cognizant 66.35 0.75 71.48 40.01 1.33 21.31 35977.67ColgtPlm 77.57 1.93 80.10 58.49 2.35 24.66 66504.25Comcast 44.48 0.67 47.74 31.71 2.08 16.98 202769.03ConocPhil 34.37 0.31 67.13 20.84 4.79 15.92 36859.25Corning♦ 33.37 1.61 33.86 17.44 2.65 226.57 25420.48Costco 346.47 7.61 363.67 271.28 0.80 39.41 152973.66CrownCstl 161.97 3.47 180.00 114.18 3.07 88.48 67974.3CSX♦ 76.92 1.66 80.62 46.81 1.37 19.65 58847.84CVS 59.61 0.08 77.03 52.04 3.53 9.01 78005.27Danaher 201.95 5.80 210.58 119.60 0.36 48.47 143262.92Deere 215.36 5.12 219.71 106.14 1.45 23.72 67487.61Delphi 18.14 0.33 18.48 5.39 - -7.87 1566.38Delta 31.69 -0.85 62.48 17.51 4.01 -5.18 20213.68Devon Energy 9.56 -0.07 28.42 4.70 4.18 -1.52 3657.65DiscFinServ 55.02 -0.09 87.43 23.25 3.37 16.50 16859.29Disney 134.50 0.30 153.41 79.07 0.69-146.95 243050.02DominRes♦ 79.84 1.64 90.89 57.79 4.90 116.75 67076.45DowDupont♦ 30.52 -0.65 48.38 30.06 4.01 -8.62 68559.76DukeEner♦ 82.98 2.25 103.79 62.13 4.75 15.61 61022.48Eaton 102.55 2.07 106.07 56.42 2.95 26.20 41030.26eBay♦ 52.83 1.30 61.06 26.02 1.19 18.33 36974.72Ecolab 203.59 5.71 231.36 124.60 0.96 36.71 58101.49Emerson 68.98 1.22 78.38 37.75 3.04 20.49 41221.89EOG Res 41.24 0.41 89.54 27.00 2.75 10.84 24011.72EquityResTP 56.88 -0.51 89.55 49.62 4.33 17.90 21170.38Exelon♦ 36.81 0.39 50.54 29.28 4.26 12.91 35871.49ExpScripts 92.33 -3.47 101.73 66.93 - 11.10 52061.19ExxonMb♦ 38.15 -0.03 75.18 30.11 9.60 21.58 161307.1Facebook 276.00 4.84 304.67 137.10 - 32.07 663581.86Fedex 227.67 6.62 231.58 88.69 1.20 44.19 59647.64FordMtr 7.02 -0.02 9.65 3.96 6.75 -12.35 27411.37Franklin 20.32 -0.25 30.21 14.91 4.14 9.42 10063.17GenDyn 145.83 -1.13 193.00 100.55 3.06 12.31 41843.36GenElectric 6.07 -0.07 13.26 5.48 0.69 15.18 53132.46GenMills 59.60 0.08 66.14 46.59 3.46 15.92 36407.66GenMotors 32.29 -0.09 39.78 14.33 3.71 29.23 46216.98GileadSci 64.38 0.24 85.97 60.89 4.19 15.75 80714.9GoldmSchs♦ 203.25 0.77 250.46 130.85 2.37 10.52 69933.62Halliburton 15.09 0.28 25.47 4.25 4.08 -3.10 13251.73HCA Hold 133.83 1.30 151.97 58.38 0.97 13.13 45239Hew-Pack♦ 19.72 0.27 23.93 12.54 3.52 9.38 27078.49HiltonWwde 90.68 -1.22 115.48 44.30 0.69 33.79 25146.41HomeDep 277.24 7.98 292.95 140.63 2.07 26.74 298436.53Honywell 166.00 1.73 184.06 101.08 2.23 19.41 116496.01HumanaInc 408.83 3.46 431.12 208.25 0.60 14.77 54085.17IBM♦ 122.57 1.36 158.75 90.56 5.57 13.21 109158.24IllinoisTool 194.90 4.01 202.68 115.94 2.26 24.14 61620.22Illumina 348.97 8.02 404.20 196.78 - 52.50 50949.62Intcntl Exch 101.64 2.82 106.99 63.51 1.19 24.96 55218.64Intel 49.57 0.66 69.29 43.63 2.74 8.69 210821.21Intuit 328.05 7.23 360.00 187.68 0.60 53.83 85885.85John&John 150.23 2.97 157.00 109.16 2.70 25.10 395538.29JohnsonCn 41.37 0.63 44.65 22.78 2.64 40.54 30781.25JPMrgnCh 100.82 0.90 141.10 76.91 3.76 12.90 307259.48Kimb-Clark♦ 151.81 2.84 160.16 110.66 2.91 19.37 51774.37KinderM 13.38 0.13 22.58 9.42 7.96 181.69 30286.11Kraft Heinz♦ 31.64 -0.13 36.37 19.99 5.32-187.93 38676.27Kroger 35.09 0.47 37.22 23.71 1.82 13.04 27293.53L Brands 28.28 -0.64 31.93 8.00 4.37 -10.76 7858.7LasVegasSd 51.28 -0.40 74.29 33.30 4.78 110.77 39164.02LibertyGbl 22.05 -0.05 28.48 15.24 - -38.11 4019.09Lilly (E)♦ 153.27 3.96 170.75 101.36 1.90 23.77 146598.21

Lockheed♦ 384.36 4.13 442.53 266.11 2.57 16.01 107444.78Lowes 159.36 5.62 171.32 60.00 1.42 26.03 120434.1Lyondell 71.64 1.56 98.91 33.71 6.17 11.22 23916.25Marathon Ptl♦ 32.12 -0.21 69.65 15.26 7.27 -2.57 20900.34Marsh&M 116.17 2.69 120.97 74.34 1.65 27.88 58843.51MasterCard 339.01 9.13 367.25 199.99 0.45 44.63 336479.55McDonald's♦ 216.73 3.15 220.50 124.23 2.33 27.09 161269.34McKesson♦ 152.37 2.44 172.18 112.60 1.13 26.62 24712.04Medtronic 106.77 2.19 122.15 72.13 2.08 29.27 143521.86Merck 85.25 1.92 92.64 65.25 2.94 19.71 215605.16Metlife♦ 38.28 0.40 53.28 22.85 4.82 3.88 34740.78Microsoft♦ 211.86 9.20 232.86 132.52 0.99 34.961603282.95Mnstr Bvrg 82.63 2.53 87.05 50.06 - 38.07 43576.13MondelezInt 57.45 1.06 59.96 41.19 2.09 23.44 82058.04Monsanto 127.95 0.02 127.97 114.19 1.64 23.62 56462.29MorganStly 51.20 1.03 57.57 27.20 2.88 8.80 80730.16MylanNV 15.19 -0.45 23.11 12.75 - 120.70 7849.84Netflix 507.32 0.30 575.37 252.28 - 81.45 223735.95NextEraE♦ 284.23 6.32 291.09 174.80 1.96 37.31 139170.13Nike 115.29 2.57 117.41 60.00 0.87 68.52 143514.99NorfolkS♦ 210.42 3.67 219.88 112.62 1.88 24.88 57955.99Northrop 337.23 2.67 385.01 263.31 1.69 22.46 56220.98NXP 124.44 4.72 139.59 58.41 1.27-1971.31 34746.66Occid Pet 11.03 -0.04 48.85 9.00 29.95 -2.32 10254.82Oracle 56.88 1.56 59.32 39.71 1.77 17.56 174546.63Pepsico♦ 137.20 1.65 147.20 101.42 2.98 26.61 189971.63Perrigo 48.33 0.08 63.86 40.01 1.89 26.25 6596.05Pfizer 36.36 0.43 40.97 27.88 4.21 12.39 202047.59Phillips66 58.16 0.20 119.92 40.04 6.51 -19.89 25398.28PhilMorris 80.31 1.28 90.17 56.01 6.13 16.35 125072.76PNCFin 110.20 -0.11 161.79 79.41 4.39 16.29 46778.09PPG Inds♦ 124.77 3.78 134.36 69.77 1.72 28.10 29441.72Praxair♦ 164.50 -0.99 169.75 140.00 2.34 37.33 47306.22ProctGmbl 138.33 2.39 141.70 94.34 2.26 71.71 344389.33Prudntl 68.25 0.43 97.24 38.62 6.30 9.05 26958.75PublStor 218.28 4.33 257.94 155.37 3.86 29.64 38155.95Qualcomm♦ 114.13 4.36 123.93 58.00 2.31 45.77 128768.98Raytheon 116.96 -5.47 233.48 103.00 2.98 10.60 32566.46Regen Pharm 572.92 11.03 664.64 271.37 - 21.11 59895.02S&P Global♦ 355.00 14.34 379.87 186.06 0.73 31.80 85555Salesforce 251.19 9.92 284.50 115.29 - -974.93 228582.9Schlmbrg♦ 18.46 0.08 41.14 11.87 9.26 -1.11 25624.36Sempra Energy 121.01 1.92 161.87 88.00 3.50 15.84 35003.31Shrwin-Will♦ 692.06 22.76 699.81 325.43 0.75 34.49 63011.83SimonProp 68.13 -1.92 163.61 42.25 12.85 10.06 20840.1SouthCpr 46.55 0.75 49.19 23.43 3.16 29.30 35986.56Starbucks 86.26 0.85 95.93 50.02 1.94 73.21 100837.94StateSt 66.19 0.64 85.89 42.10 3.31 10.07 23324.25Stryker 207.25 7.17 226.30 124.54 1.14 46.79 77683.14Sychrony Fin 25.46 -0.07 38.18 12.15 3.64 7.40 14862.4T-MobileUS 113.63 2.06 119.20 63.50 - 26.70 140652.23Target♦ 147.23 3.23 156.10 90.17 1.83 26.60 73703.46TE Connect 98.27 2.87 101.00 48.62 1.99-274.71 32431.23Tesla Mtrs 346.85 16.64 502.49 43.67 - 159.27 321479.93TexasInstr 139.69 3.65 148.37 93.09 2.61 24.91 127943.61TheTrvelers♦ 113.69 0.80 153.38 76.99 3.06 15.37 28784.04ThrmoFshr 418.98 13.68 441.96 250.21 0.21 43.10 165744.05TimeWrnr 98.77 0.82 103.89 85.88 1.54 15.09 77269.69TJX Cos 54.59 -0.72 64.95 32.72 1.60 20.73 65450.75UnionPac♦ 193.14 4.48 197.96 105.08 2.11 22.80 131108.62UPS B 160.04 3.59 166.20 82.00 2.59 30.24 113161.28USBancorp 36.65 -0.07 61.11 28.36 4.66 9.03 55208.19UtdHlthcre 312.65 5.40 324.57 187.72 1.51 16.70 297122.48UtdTech♦ 86.01 -5.36 158.44 69.02 3.12 60.04 74498.84ValeroEngy 47.57 -1.17 101.99 31.00 8.32 17.66 19394.97Verizon 60.51 0.55 62.22 48.84 4.28 12.45 250372.95VertexPharm 261.09 2.48 306.08 165.23 - 31.37 68005.42VF Cp♦ 68.05 0.15 100.25 45.07 2.89 92.40 26515.59ViacomCBS 28.84 0.13 44.94 10.10 3.05 9.26 16259.17Visa Inc 204.95 4.83 217.35 133.93 0.59 37.03 345541.94Walgreen♦ 35.42 -0.68 64.50 35.23 5.43 39.63 30692.64WalMartSto 141.07 2.62 151.33 102.00 1.95 26.02 399760.36WellsFargo 23.77 -0.20 54.75 22.00 9.03 25.10 97933.52Williams Cos 21.19 0.71 25.29 8.41 7.75 183.09 25715.3Yum!Brnds 94.32 0.64 119.59 54.95 1.99 26.92 28428.01Venezuela (VEF)Bco de Vnzla 13500 -200.00 14000 700.00 565.32 - 137.39Bco Provncl 775000-5000.00 787000 69000 - 46.31 233.16Mrcntl Srvcs 805000 - 810000 65000 0.01 15.60 136.74

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

FT 500: TOP 20

Close Prev Day Week Monthprice price change change % change change % change %

CaixaBnk 2.06 1.96 0.10 5.09 0.28 15.7 7.03IM Baotou Stl 1.30 1.19 0.11 9.24 0.14 12.1 9.24Firstrand 41.00 38.15 2.85 7.47 4.40 12.0 8.67Renault 25.27 25.15 0.12 0.48 2.60 11.4 11.03Nppn Stl 1143.50 1131.00 12.50 1.11 111.00 10.8 18.26Fanuc 20620.00 20790.00 -170.00 -0.82 1945.00 10.4 12.90Imperial Brands 1360.50 1326.50 34.00 2.56 112.00 9.0 -98.91Volkswgn 161.90 158.40 3.50 2.21 12.50 8.4 8.37BT 110.00 104.15 5.85 5.62 8.30 8.2 -98.97SmsungEl 58400.00 58700.00 -300.00 -0.51 4200.00 7.7 1.57Daimler 46.39 45.58 0.82 1.79 3.31 7.7 7.68BASF 54.73 53.97 0.76 1.41 3.35 6.5 6.52Sinopec Oil 2.01 1.94 0.07 3.61 0.11 5.8 8.65BBVA 2.52 2.49 0.03 1.12 0.13 5.6 190.65BMW 63.74 63.17 0.57 0.90 3.35 5.5 5.55Swiss Re 78.40 75.28 3.12 4.14 3.78 5.1 11.68ChinaMBank 38.55 38.40 0.15 0.39 1.85 5.0 4.90FastRetail 66530.00 67240.00 -710.00 -1.06 3150.00 5.0 12.77ShnEtsuCh 13590.00 13785.00 -195.00 -1.41 600.00 4.6 10.38Diageo 2646.00 2600.50 45.50 1.75 116.00 4.6 -98.97Based on the FT Global 500 companies in local currency

FT 500: BOTTOM 20

Close Prev Day Week Monthprice price change change % change change % change %

Tesla Mtrs 346.85 330.21 16.64 5.04 -100.52 -22.5 19.39Softbank 5677.00 5845.00 -168.00 -2.87 -842.00 -12.9 -12.91Occid Pet 11.03 11.06 -0.04 -0.32 -1.38 -11.1 -28.62Adobe 475.76 462.13 13.63 2.95 -58.04 -10.9 5.81Nokia 3.58 3.57 0.00 0.13 -0.42 -10.5 -15.40Devon Energy 9.56 9.62 -0.07 -0.68 -1.11 -10.4 -20.73Apple 117.85 112.82 5.03 4.46 -13.55 -10.3 5.98Suncor En 18.65 18.52 0.13 0.67 -2.13 -10.2 -13.74ValeroEngy 47.57 48.73 -1.17 -2.39 -5.35 -10.1 -9.51SBI NewA 194.85 204.05 -9.20 -4.51 -21.40 -9.9 2.20Alphabet 1550.80 1523.60 27.20 1.78 -166.60 -9.7 3.35L Brands 28.28 28.92 -0.64 -2.21 -2.97 -9.5 8.64OilNatGas 72.70 74.45 -1.75 -2.35 -7.60 -9.5 -7.57Salesforce 251.19 241.27 9.92 4.11 -25.50 -9.2 24.83Naspers N 2882.49 2854.00 28.49 1.00 -292.15 -9.2 -6.67Boeing 159.20 161.08 -1.88 -1.17 -15.58 -8.9 -6.27Kraft Heinz 31.64 31.76 -0.13 -0.39 -3.08 -8.9 -10.58Facebook 276.00 271.16 4.84 1.78 -26.50 -8.8 2.93Microsoft 211.86 202.66 9.20 4.54 -19.79 -8.5 -0.44ASML Hld 304.85 297.40 7.45 2.51 -28.30 -8.5 -2.79Based on the FT Global 500 companies in local currency

BONDS: HIGH YIELD & EMERGING MARKET

Day's Mth's SpreadRed Ratings Bid Bid chge chge vs

Sep 09 date Coupon S* M* F* price yield yield yield USHigh Yield US$HCA Inc. 04/24 8.36 BB- Ba2 BB 113.75 4.24 0.00 0.12 -

High Yield EuroAldesa Financial Services S.A. 04/21 7.25 - - B 71.10 28.23 0.00 0.64 25.98

Emerging US$Peru 03/19 7.13 BBB+ A3 BBB+ 104.40 2.60 - - 0.34Colombia 01/26 4.50 - Baa2 BBB- 111.13 2.20 0.07 0.14 1.95Brazil 04/26 6.00 - Ba2 BB- 117.88 2.54 0.03 -0.01 2.29Poland 04/26 3.25 - A2 A- 112.89 0.87 -0.01 0.01 0.62Turkey 04/26 4.25 - B1 BB- 91.13 6.15 -0.03 -1.16 5.90Mexico 05/26 11.50 - Baa1 BBB- 150.00 2.11 0.00 -0.24 1.86Turkey 03/27 6.00 - Ba2 BB+ 101.26 5.82 0.00 0.17 3.07Peru 08/27 4.13 BBB+ A3 BBB+ 103.50 3.66 0.01 -0.02 0.80Russia 06/28 12.75 - Baa3 BBB 171.72 2.54 0.02 0.11 -Brazil 02/47 5.63 - Ba2 BB- 113.00 4.76 0.02 0.24 -

Emerging EuroBrazil 04/21 2.88 BB- Ba2 BB- 103.09 0.05 0.01 -0.09 -1.19Mexico 02/22 1.88 - Baa1 BBB- 102.28 0.30 -0.01 -0.27 0.15Mexico 04/23 2.75 BBB+ A3 BBB+ 107.76 0.76 0.00 -0.07 -1.56Bulgaria 03/28 3.00 BBB- Baa2 BBB 117.04 1.00 0.02 -0.15 -1.42Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. US $ denominated bonds NY close; allother London close. *S - Standard & Poor’s, M - Moody’s, F - Fitch.

BONDS: GLOBAL INVESTMENT GRADE

Day's Mth's SpreadRed Ratings Bid Bid chge chge vs

Sep 09 date Coupon S* M* F* price yield yield yield USUS$FleetBoston Financial Corp. 01/28 6.88 BBB+ Baa1 A- 129.00 2.54 -0.01 -0.05 -The Goldman Sachs Group, Inc. 02/28 5.00 BBB+ A3 A 117.21 2.47 0.00 0.32 -NationsBank Corp. 03/28 6.80 BBB+ Baa1 A- 127.69 2.72 -0.01 0.06 -GTE LLC 04/28 6.94 BBB+ Baa2 A- 128.27 2.80 0.00 -0.11 -United Utilities PLC 08/28 6.88 BBB Baa1 A- 130.43 2.62 -0.07 -0.22 -Barclays Bank plc 01/29 4.50 A A1 A+ 96.46 5.02 0.00 0.02 -EuroElectricite de France (EDF) 04/30 4.63 A- A3 A- 137.45 0.82 -0.01 0.10 -The Goldman Sachs Group, Inc. 02/31 3.00 BBB+ A3 A 124.42 0.68 0.00 -0.11 -The Goldman Sachs Group, Inc. 02/31 3.00 BBB+ A3 A 121.70 0.93 0.00 0.02 -Finland 04/31 0.75 AA+ Aa1 AA+ 111.08 -0.27 0.00 -0.05 -0.87YenMexico 06/26 1.09 - Baa1 BBB- 95.78 1.86 -0.01 -0.01 1.61£ Sterlinginnogy Fin B.V. 06/30 6.25 BBB Baa2 A- 137.45 2.19 -0.03 0.02 -innogy Fin B.V. 06/30 6.25 BBB Baa2 A- 128.68 3.20 0.00 -0.01 0.40Interactive Data Pricing and Reference Data LLC, an ICE Data Services company. US $ denominated bonds NY close; all other Londonclose. *S - Standard & Poor’s, M - Moody’s, F - Fitch.

INTEREST RATES: OFFICIAL

Sep 09 Rate Current Since Last Mnth Ago Year AgoUS Fed Funds 0.00-0.25 15-03-2020 1.00-1.25 1.50-1.75 1.25-1.50US Prime 4.75 30-10-2019 5.25 5.25 4.25US Discount 2.65 30-09-2019 2.75 2.75 1.75Euro Repo 0.00 16-03-2016 0.00 0.00 0.00UK Repo 0.10 19-03-2020 0.25 0.75 0.25Japan O'night Call 0.00-0.10 01-02-2016 0.00 0.00--0.10 0.00--0.10Switzerland Libor Target -1.25-0.25 15-01-2015 -0.75--0.25 -1.25--0.25 -1.25--0.25

INTEREST RATES: MARKET

Over Change One Three Six OneSep 09 (Libor: Sep 08) night Day Week Month month month month yearUS$ Libor 0.07938 -0.002 -0.002 0.000 0.15550 0.24950 0.30100 0.42700Euro Libor -0.58443 -0.001 -0.007 -0.001 -0.55229 -0.51614 -0.49771 -0.40700£ Libor 0.04750 0.001 0.000 0.002 0.05638 0.06138 0.10538 0.19625Swiss Fr Libor 0.000 -0.79260 -0.73900 -0.69600 -0.55640Yen Libor 0.002 -0.09767 -0.08050 -0.04867 0.08533Euro Euribor -0.002 -0.51500 -0.48800 -0.45900 -0.40200Sterling CDs - - - -US$ CDs - - - -Euro CDs - - - -

Short 7 Days One Three Six OneSep 09 term notice month month month yearEuro -0.74 -0.44 -0.71 -0.41 -0.69 -0.39 -0.63 -0.33 -0.64 -0.34 -0.62 -0.32Sterling 0.45 0.55 0.70 0.80 0.78 0.88 0.82 0.97 0.89 1.04Swiss Franc - - - - - - - - - - - -Canadian Dollar - - - - - - - - - - - -US Dollar 0.07 0.37 -0.02 0.28 0.01 0.31 0.10 0.40 0.13 0.43 0.23 0.53Japanese Yen -0.25 -0.05 -0.25 -0.05 -0.25 0.05 -0.20 0.10 -0.30 0.00 -0.20 0.10Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs:Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA.

BOND INDICES

Day's Month's Year Return ReturnIndex change change change 1 month 1 year

Markit IBoxxABF Pan-Asia unhedged 214.97 0.06 -0.22 3.56 -0.21 6.35Corporates( £) 396.18 0.53 1.15 5.27 0.47 5.19Corporates($) - - - - - -Corporates(€) 239.69 0.10 0.43 0.85 0.45 -0.04Eurozone Sov(€) 258.44 0.23 0.66 2.99 -0.37 -0.12Gilts( £) 379.31 1.12 2.11 8.86 -0.45 4.71Global Inflation-Lkd 301.09 -0.17 -1.00 7.70 -0.66 7.45Markit iBoxx £ Non-Gilts 385.14 0.53 1.13 5.13 0.35 4.61Overall ($) - - - - - -Overall( £) 376.99 0.95 1.84 7.55 -0.22 4.56Overall(€) 249.71 0.18 0.58 2.33 -0.13 -0.15Treasuries ($) - - - - - -

FTSESterling Corporate (£) - - - - - -Euro Corporate (€) 104.47 -0.05 - - 0.54 -1.73Euro Emerging Mkts (€) 594.56 1.17 - - -4.12 34.58Eurozone Govt Bond 110.04 -0.19 - - -0.34 -0.64

CREDIT INDICES Day's Week's Month's Series SeriesIndex change change change high low

Markit iTraxxCrossover 5Y 312.34 - - - 324.74 312.34Europe 5Y 53.32 -0.54 3.00 -0.94 131.25 49.98Japan 5Y 60.29 1.19 1.37 0.11 188.33 56.17Senior Financials 5Y 61.66 -1.37 5.07 -2.60 150.83 56.15

Markit CDXEmerging Markets 5Y 173.99 4.87 11.58 -10.49 205.64 158.35Nth Amer High Yld 5Y 384.34 18.07 32.33 -14.07 405.86 350.21Nth Amer Inv Grade 5Y 69.06 2.36 6.94 2.02 150.81 62.02Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names.

COMMODITIES www.ft.com/commodities

Energy Price* ChangeCrude Oil† Sep 37.46 0.54Brent Crude Oil‡ 40.95 1.07RBOB Gasoline† Sep 1.12 0.01Heating Oil† - -Natural Gas† Sep 2.43 0.06Ethanol♦ - -Uranium† Jul 33.80 -Carbon Emissions‡ - -Diesel† - -Base Metals (♠ LME 3 Months)Aluminium 1786.50 -8.50Aluminium Alloy 1500.00 0.00Copper 6756.50 47.00Lead 1893.00 -22.50Nickel 14925.00 -5.00Tin 18060.00 -10.00Zinc 2424.00 3.00Precious Metals (PM London Fix)Gold 1910.95 -17.50Silver (US cents) 2667.50 -15.50Platinum 901.00 3.00Palladium 2300.00 -10.00Bulk CommoditiesIron Ore 127.20 -1.80GlobalCOAL RB Index 56.75 -0.25Baltic Dry Index 1296.00 -32.00

Agricultural & Cattle Futures Price* ChangeCorn♦ Dec 360.00 -1.50Wheat♦ Dec 543.00 -1.75Soybeans♦ Nov 975.50 1.50Soybeans Meal♦ Oct 311.50 2.00Cocoa (ICE Liffe)X Dec 1777.00 -1.00Cocoa (ICE US)♥ Dec 2562.00 -8.00Coffee(Robusta)X Sep 1495.00 -28.00Coffee (Arabica)♥ Sep 131.40 1.85White SugarX 354.90 -2.10Sugar 11♥ 12.12 0.03Cotton♥ Oct 63.14 0.08Orange Juice♥ Nov 116.80 -0.20Palm Oil♣ - -Live Cattle♣ Oct 105.55 0.80Feeder Cattle♣ Sep 134.88 -Lean Hogs♣ Oct 59.90 0.18

% Chg % ChgSep 08 Month Year

S&P GSCI Spt 340.24 -1.47 -16.99DJ UBS Spot 71.56 1.56 -8.79TR/CC CRB TR 155.75 -0.18 -15.16M Lynch MLCX Ex. Rtn 231.14 -9.84 -33.05UBS Bberg CMCI TR 13.20 4.85 -4.74LEBA EUA Carbon 26.25 -8.25 5.08LEBA CER Carbon 0.02 0.00 -90.48LEBA UK Power 1370.00 9.60 9.16

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

BONDS: INDEX-LINKED

Price Yield Month Value No ofSep 08 Sep 08 Prev return stock Market stocks

Can 4.25%' 21 105.85 -0.502 -0.523 -0.22 8.51 97638.69 8Fr 0.10%' 21 104.11 -0.798 -0.835 -0.35 11.35 240102.42 15Swe 0.25%' 22 110.26 -0.801 -0.801 0.01 31.92 202344.36 7UK 1.875%' 22 111.65 -3.191 -3.009 0.35 15.74 804407.99 28UK 2.5%' 24 363.69 -2.992 -2.817 0.56 6.82 804407.99 28UK 2%' 35 309.48 -2.795 -2.654 2.10 9.08 804407.99 28US 0.625%' 21 - - - - - - -US 3.625%' 28 137.60 -1.105 -1.070 -0.45 16.78 1587900.55 42Representative stocks from each major market Source: Merill Lynch Global Bond Indices † Local currencies. ‡ Total marketvalue. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to paramount.

BONDS: TEN YEAR GOVT SPREADS

Spread SpreadBid vs vs

Yield Bund T-Bonds

Spread SpreadBid vs vs

Yield Bund T-Bonds

Australia 1.10 - 0.46Austria - - -Canada 0.55 - -0.09Denmark -0.37 - -1.01Finland -0.36 - -1.00Germany - - -Ireland -0.17 - -0.81Italy 0.59 - -0.05Japan 0.02 - -0.62

Netherlands -0.60 - -New Zealand 0.63 - -0.01Norway 0.66 - 0.02Portugal -0.09 - -Spain 0.22 - -0.42Sweden -1.39 - -2.03Switzerland -0.46 - -1.10United Kingdom - - -United States 0.64 - 0.00

Interactive Data Pricing and Reference Data LLC, an ICE Data Services company.

VOLATILITY INDICES

Sep 09 Day Chng Prev 52 wk high 52 wk lowVIX 29.35 -2.11 31.46 85.42 11.42VXD 27.44 -2.71 30.15 71.05 2.47VXN 37.21 -3.81 41.02 84.67 13.58VDAX 26.66 -2.69 29.35 93.30 -† CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility.‡ Deutsche Borse. VDAX: DAX Index Options Volatility.

BONDS: BENCHMARK GOVERNMENT

Red Bid Bid Day chg Wk chg Month YearDate Coupon Price Yield yield yield chg yld chg yld

Australia 11/22 2.25 104.32 0.28 0.00 0.00 0.01 -0.5505/32 1.25 101.65 1.10 0.00 0.00 0.15 -

Austria - - - - - - -02/47 1.50 133.80 0.19 -0.03 -0.09 0.03 -0.06

Belgium 09/22 1.00 103.18 -0.59 -0.01 -0.01 0.00 0.13Canada 11/22 2.00 103.92 0.20 -0.02 -0.06 -0.06 -1.33

06/30 1.25 106.65 0.55 -0.04 -0.05 0.06 -0.75Denmark 11/22 0.25 101.87 -0.60 0.00 -0.01 0.01 0.27

11/29 0.50 108.16 -0.37 -0.03 -0.07 0.00 0.24Finland 09/22 1.63 104.60 -0.64 0.00 -0.02 -0.02 0.13

09/29 0.50 107.89 -0.36 -0.03 -0.08 -0.02 -0.01France 10/22 2.25 106.18 -0.63 -0.01 -0.03 -0.02 0.17

05/26 0.50 106.03 -0.54 -0.02 -0.07 -0.02 0.04Germany - - - - - - -

02/23 1.50 105.53 -0.74 -0.01 -0.05 -0.01 0.1802/26 0.50 106.75 -0.71 -0.02 -0.06 0.00 0.1308/50 0.00 101.47 -0.05 -0.04 -0.10 0.05 0.03

Greece 02/26 3.65 116.38 1.13 0.01 -0.01 0.07 -0.56Ireland 10/22 0.00 101.19 -0.56 0.00 -0.02 0.00 0.06

05/30 2.40 125.10 -0.17 -0.03 -0.07 0.02 -0.1905/30 2.40 125.10 -0.17 -0.03 -0.07 0.02 -0.19

Italy 08/22 0.90 101.84 -0.07 -0.01 0.02 0.01 0.0102/25 0.35 99.86 0.38 -0.01 0.01 0.07 -05/30 0.40 98.20 0.59 0.01 0.06 0.22 -03/48 3.45 131.36 1.97 -0.01 0.01 0.14 0.04

Japan 03/23 0.05 99.98 0.06 0.00 -0.01 -0.02 -04/25 0.05 100.02 0.04 0.00 -0.01 -0.02 -12/29 0.10 100.76 0.02 -0.01 -0.01 0.03 -12/49 0.40 94.74 0.60 -0.01 -0.01 0.05 -

Netherlands 07/22 2.25 105.41 -0.66 0.00 -0.04 -0.03 0.2207/26 0.50 106.56 -0.60 -0.02 -0.05 0.00 0.08

New Zealand 04/25 2.75 112.20 0.09 -0.01 -0.05 -0.28 -0.8205/31 1.50 109.01 0.63 -0.01 -0.02 -0.15 -05/31 1.50 109.01 0.63 -0.01 -0.02 -0.15 -

Norway 08/30 1.38 106.90 0.66 -0.02 -0.12 0.07 -08/30 1.38 106.90 0.66 -0.02 -0.12 0.07 -

Portugal 10/22 2.20 105.81 -0.54 -0.01 -0.05 -0.09 -0.1002/26 3.30 118.56 -0.09 -0.01 -0.04 0.04 -0.03

Spain 10/22 0.45 101.92 -0.44 0.01 -0.01 -0.04 0.0210/29 0.60 103.46 0.22 -0.03 -0.07 0.05 0.04

Sweden 06/22 0.25 110.26 -0.80 0.00 0.00 -0.06 1.4106/26 0.13 116.40 -1.27 -0.03 -0.06 0.08 0.8506/30 0.13 116.14 -1.39 -0.03 -0.09 0.06 -

Switzerland 05/22 2.00 104.86 -0.81 0.00 0.00 0.01 0.2905/30 0.50 109.59 -0.46 -0.01 -0.05 0.04 0.39

United Kingdom - - - - - - -07/22 0.50 101.17 -0.12 -0.05 -0.05 -0.10 -0.4507/26 1.50 109.34 -0.09 -0.06 -0.09 -0.04 -0.4007/47 1.50 118.71 0.73 -0.09 -0.15 0.05 -0.28

United States 03/22 0.38 100.34 0.15 -0.01 0.01 0.01 -03/25 0.50 101.13 0.25 -0.03 0.02 0.04 -02/30 1.50 107.91 0.64 -0.03 0.01 0.10 -02/50 0.25 118.80 - - - - -

Interactive Data Pricing and Reference Data LLC, an ICE Data Services company.

GILTS: UK CASH MARKET

Red Change in Yield 52 Week AmntSep 09 Price £ Yield Day Week Month Year High Low £m

- - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -

Tr 1.5pc '21 100.56 -0.04 0.00 33.33 -233.33 -107.84 101.38 100.56 32.84Tr 4pc '22 106.06 -0.06 -50.00 -33.33 500.00 -115.00 109.09 106.06 38.77Tr 5pc '25 122.89 -0.09 -35.71 0.00 28.57 -122.50 125.74 121.74 35.84Tr 1.25pc '27 108.28 0.04 -300.00 33.33 -233.33 -91.11 109.23 103.96 33.47Tr 4.25pc '32 144.67 0.36 20.00 0.00 38.46 -50.00 148.26 137.84 38.71Tr 4.25pc '36 154.78 0.55 12.24 -5.17 22.22 -38.20 160.46 145.12 30.41Tr 4.5pc '42 176.98 0.74 10.45 -3.90 17.46 -30.84 186.37 162.55 27.21Tr 3.75pc '52 184.07 0.77 10.00 -3.75 16.67 -28.70 198.36 164.59 24.10Tr 4pc '60 211.64 0.73 10.61 -3.95 19.67 -29.13 231.12 186.33 24.12Gilts benchmarks & non-rump undated stocks. Closing mid-price in pounds per £100 nominal of stock.

GILTS: UK FTSE ACTUARIES INDICES

Price Indices Day's Total Return ReturnFixed Coupon Sep 08 chg % Return 1 month 1 year Yield1 Up to 5 Years 89.86 0.15 2495.10 0.18 1.45 -0.142 5 - 10 Years 188.60 0.47 3836.70 0.04 3.39 0.033 10 - 15 Years 228.60 0.75 4940.70 -0.43 4.92 0.294 5 - 15 Years 197.64 0.59 4107.99 -0.14 3.89 0.165 Over 15 Years 405.36 1.96 6635.33 -0.84 9.35 0.667 All stocks 195.67 1.10 4175.10 -0.38 5.78 0.54

Day's Month Year's Total Return ReturnIndex Linked Sep 08 chg % chg % chg % Return 1 month 1 year1 Up to 5 Years 307.46 0.56 1.10 -2.07 2531.93 1.10 -0.352 Over 5 years 848.77 3.20 -0.66 5.11 6409.71 -0.66 5.503 5-15 years 529.05 1.44 1.05 0.86 4206.77 1.05 1.604 Over 15 years 1117.21 3.88 -1.28 6.63 8216.52 -1.28 6.895 All stocks 753.87 2.96 -0.51 4.38 5796.93 -0.51 4.93

Yield Indices Sep 08 Sep 07 Yr ago Sep 08 Sep 07 Yr ago5 Yrs -0.15 -0.09 0.30 20 Yrs 0.70 0.79 1.0710 Yrs 0.22 0.30 0.59 45 Yrs 0.62 0.72 1.0315 Yrs 0.54 0.63 0.91

inflation 0% inflation 5%Real yield Sep 08 Dur yrs Previous Yr ago Sep 08 Dur yrs Previous Yr agoUp to 5 yrs -2.83 3.10 -2.65 -2.75 -3.17 3.10 -3.00 -3.19Over 5 yrs -2.32 24.43 -2.20 -2.08 -2.34 24.48 -2.21 -2.105-15 yrs -2.94 9.77 -2.80 -2.73 -3.03 9.77 -2.88 -2.78Over 15 yrs -2.25 29.48 -2.12 -2.02 -2.26 29.49 -2.13 -2.03All stocks -2.33 22.60 -2.20 -2.09 -2.35 22.66 -2.22 -2.12See FTSE website for more details www.ftse.com/products/indices/gilts©2018 Tradeweb Markets LLC. All rights reserved. The Tradeweb FTSEGilt Closing Prices information contained herein is proprietary toTradeweb; may not be copied or re-distributed; is not warranted to beaccurate, complete or timely; and does not constitute investment advice.Tradeweb is not responsible for any loss or damage that might result from the use of this information.

All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurateat the time of publication. No offer is made by Morningstar, its suppliers, or the FT. Neither the FT, norMorningstar’s suppliers, warrant or guarantee that the information is reliable or complete. Neither the FT norMorningstar’s suppliers accept responsibility and will not be liable for any loss arising from the reliance on theuse of the listed information. For all queries e-mail [email protected]

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

SEPTEMBER 10 2020 Section:Stats Time: 9/9/2020 - 18:36 User: gerry.white Page Name: MARKET DATA 2, Part,Page,Edition: EUR, 14, 1


MANAGED FUNDS SERVICE

Fund Bid Offer D+/- Yield

Aberdeen Standard Capital (JER)PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130FCA Recognised

Aberdeen Standard Capital Offshore Strategy Fund LimitedBridge Fund £ 2.0997 - -0.0017 1.79Global Equity Fund £ 2.9603 - -0.0123 1.10Global Fixed Interest Fund £ 0.9735 - -0.0017 4.30Income Fund £ 0.6128 - 0.0020 2.58Sterling Fixed Interest Fund £ 0.9085 - 0.0007 2.92UK Equity Fund £ 1.7385 - 0.0116 3.17

Aegon Asset Management UK ICVC (UK)3 Lochside Crescent, Edinburgh, EH12 9SA0800 358 3009 www.aegonam.comAuthorised FundsGlobal Equity GBP B Acc £ 2.60 - -0.10 0.00

Aegon Asset Management Investment Company (Ireland) (IRL)1 North Wall Quay Dublin 1, Ireland +35 3162 24493FCA RecognisedAbsolute Return Bond B GBP Acc 1140.27 - 0.09 1.61High Yield Global Bond A GBP Inc 490.71 - -0.36 4.49High Yield Global Bond B GBP Inc 1048.02 - -0.75 5.23Global Equity Income B GBP Acc 1901.39 - -53.61 0.00Global Equity Income B GBP Inc 1455.44 - -8.32 3.19lobal Equity Market Neutral Fund - B Acc GBP £ 11.58 - -0.09 0.00Global Sustainable Equity B Acc GBP £ 22.79 - -0.89 -Global Sustainable Equity C Acc GBP £ 23.09 - -0.91 -Inv Grd Gbl Bond A Inc GBH 619.65 - -0.46 1.81Short Dated High Yld Bd B Acc GBP £ 10.64 - 0.00 0.00Short Dated High Yld Bd C Acc GBP (Hdg) £ 10.73 - 0.00 0.00Strategic Global Bond A GBP Inc 1264.06 - -1.17 2.70Strategic Global Bond B GBP Inc 717.45 - -0.65 3.45

Algebris Investments (IRL)RegulatedAlgebris Financial Credit I EUR € 177.87 - -2.47 0.00Algebris Financial Credit R EUR € 155.04 - -2.15 0.00Algebris Financial Credit Rd EUR € 105.61 - -1.46 4.94Algebris Financial Income I EUR € 134.61 - -1.64 -Algebris Financial Income R EUR € 124.99 - -1.52 -Algebris Financial Income Rd EUR € 83.34 - -1.02 -Algebris Financial Equity B EUR € 88.57 - -2.16 0.00Algebris IG Financial Credit B EUR € 106.65 - -0.10 -Algebris IG Financial Credit R EUR € 106.03 - -0.10 -Algebris Global Credit Opportunities I EUR € 123.70 - -0.36 0.00Algebris Global Credit Opportunities R EUR € 121.69 - -0.36 0.00Algebris Global Credit Opportunities Rd EUR € 121.69 - -0.36 0.00Algebris Core Italy I EUR € 106.21 - -0.61 0.00Algebris Core Italy R EUR € 99.51 - -0.57 0.00Algebris Allocation I EUR € 97.48 - 0.16 0.00

The Antares European Fund LimitedOther InternationalAEF Ltd Usd (Est) $ 585.69 - -9.73 -AEF Ltd Eur (Est) € 548.47 - -9.03 0.00

Arisaig PartnersOther International FundsArisaig Asia Consumer Fund Class A (Ex-Alcohol) shares $ 113.80 - -0.17 0.00Arisaig Asia Consumer Fund Limited $ 112.87 - -0.27 0.00Arisaig Global Emerging Markets Consumer Fund $ 14.31 - -0.14 0.00Arisaig Global Emerging Markets Consumer UCITS € 12.85 - -0.01 -Arisaig Global Emerging Markets Consumer UCITS STG £ 14.50 - -0.10 -Arisaig Latin America Consumer Fund $ 23.24 - -0.38 0.00

Artemis Fund Managers Ltd (1200)F (UK)57 St. James's Street, London SW1A 1LD 0800 092 2051Authorised Inv FundsArtemis Corporate Bond I Acc £ 1.09 - 0.00 -Artemis Target Return Bond I Acc £ 1.04 - 0.00 -

Ashmore Investment Management Limited (LUX)2 rue Albert Borschette L-1246 LuxembourgFCA RecognisedAshmore SICAV Emerging Market Debt Fund $ 91.71 - -0.55 5.40Ashmore SICAV Emerging Market Frontier Equity Fund $ 144.79 - -0.93 1.61Ashmore SICAV Emerging Market Total Return Fund $ 78.96 - -0.50 4.55Ashmore SICAV Global Small Cap Equity Fund $ 170.97 - -1.97 0.03EM Active Equity Fund Acc USD $ 133.03 - -2.00 0.00EM Equity Fund Acc USD $ 118.31 - -2.05 0.00


EM Mkts Corp.Debt USD F $ 87.63 - -0.15 6.48EM Mkts Loc.Ccy Bd USD F $ 73.99 - -0.57 4.89EM Short Duration Fund Acc USD $ 121.59 - -0.78 0.00

Atlantas Sicav (LUX)RegulatedAmerican Dynamic $ 5642.06 5642.06 -169.05 -American One $ 5684.93 5684.93 -93.99 0.00Bond Global € 1485.88 1485.88 -13.06 0.00Eurocroissance € 1173.11 1173.11 5.36 -Far East $ 1056.21 - -16.74 -

Barclays Investment Funds (CI) Ltd (JER)39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800FCA Recognised

Bond FundsSterling Bond F £ 0.50 - 0.00 2.31

CCLA Investment Management Ltd (UK)Senator House 85 Queen Victoria Street London EC4V 4ETAuthorised Inv FundsDiversified Income 1 Units GBP Inc £ 1.54 1.54 0.00 0.03Diversified Income 2 Units GBP Inc £ 1.48 1.48 0.00 0.03Diversified Income 3 Units GBP Inc £ 1.49 1.49 0.00 0.03

CG Asset Management Limited (IRL)25 Moorgate, London, EC2R 6AYDealing: Tel. +353 1434 5098 Fax. +353 1542 2859FCA Recognised

CG Portfolio Fund PlcAbsolute Return Cls M Inc £ 129.59 129.59 0.66 1.45Capital Gearing Portfolio GBP P £ 35104.20 35104.20 179.88 0.52Capital Gearing Portfolio GBP V £ 170.72 170.72 0.88 0.21Dollar Fund Cls D Inc £ 175.96 175.96 2.97 1.84Dollar Hedged GBP Inc £ 107.19 107.19 0.36 1.78Real Return Cls A Inc £ 213.81 213.81 3.29 2.11

Chartered Asset Management Pte LtdOther International FundsCAM-GTF Limited $ 298888.61 298888.61 -4021.84 0.00CAM GTi Limited $ 864.80 - 72.09 -Raffles-Asia Investment Company $ 1.50 1.50 0.06 1.99

Dodge & Cox Worldwide Funds (IRL)6 Duke Street,St.James,London SW1Y 6BNwww.dodgeandcox.worldwide.com 020 3713 7664FCA Recognised

Dodge & Cox Worldwide Funds plc - Global Bond FundEUR Accumulating Class € 14.78 - 0.03 0.00EUR Accumulating Class (H) € 11.20 - -0.04 -EUR Distributing Class € 11.72 - 0.03 3.97EUR Distributing Class (H) € 8.84 - -0.03 -GBP Distributing Class £ 12.95 - 0.24 4.08GBP Distributing Class (H) £ 9.30 - -0.03 4.30USD Accumulating Class $ 12.56 - -0.04 0.00

Dodge & Cox Worldwide Funds plc-Global Stock FundUSD Accumulating Share Class $ 20.42 - -0.55 0.00GBP Accumulating Share Class £ 25.87 - -0.10 0.00GBP Distributing Share class £ 17.89 - -0.07 1.62EUR Accumulating Share Class € 26.04 - -0.55 0.00GBP Distributing Class (H) £ 10.00 - -0.27 1.21

Dodge & Cox Worldwide Funds plc-U.S. Stock FundUSD Accumulating Share Class $ 25.84 - -0.69 0.00GBP Accumulating Share Class £ 30.95 - -0.13 0.00GBP Distributing Share Class £ 18.94 - -0.08 1.12EUR Accumulating Share Class € 28.44 - -0.61 0.00GBP Distributing Class (H) £ 10.77 - -0.30 1.49

Dragon Capital Group1501 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, VietnamFund information, dealing and administration: [email protected]

Other International FundsVietnam Equity (UCITS) Fund A USD $ 20.25 - -0.05 0.00

Ennismore Smaller Cos Plc (IRL)5 Kensington Church St, London W8 4LD 020 7368 4220FCA RecognisedEnnismore European Smlr Cos NAV £ 123.78 - 1.17 0.00Ennismore European Smlr Cos NAV € 136.71 - 0.08 0.00

Ennismore European Smlr Cos Hedge FdOther International FundsNAV € 491.00 - 3.71 0.00

Equinox Fund Mgmt (Guernsey) Limited (GSY)RegulatedEquinox Russian Opportunities Fund Limited $ 178.18 - 9.24 0.00


Euronova Asset Management UK LLP (CYM)RegulatedSmaller Cos Cls One Shares € 50.30 - -0.27 0.00Smaller Cos Cls Two Shares € 33.20 - -0.17 0.00Smaller Cos Cls Three Shares € 16.72 - -0.08 0.00Smaller Cos Cls Four Shares € 21.48 - -0.11 0.00

FIL Investment Services (UK) Limited (1200)F (UK)130, Tonbridge Rd, Tonbridge TN11 9DZCallfree: Private Clients 0800 414161Broker Dealings: 0800 414 181

OEIC FundsFidelity American Fund W-ACC-GBP £ 49.95 - -0.16 0.33Fidelity Cash Fund Y-ACC-GBP £ 1.02 - 0.00 0.66FID Emerg Europe, Middle East and Africa Fund W-ACC-GBP £ 2.02 - 0.02 4.55Fidelity Global Enhanced Income Fund W-ACC-GBP £ 1.96 - 0.02 -Fidelity Global Focus Fund W-ACC-GBP £ 28.86 - 0.17 -Fidelity Global High Yield Fund Y-ACC-GBP £ 14.81 - -0.04 3.79Fidelity Japan Fund W-ACC-GBP £ 4.50 - 0.04 -Fidelity Japan Smaller Companies Fund W-ACC-GBP £ 3.77 - 0.05 0.40Fidelity Select 50 Balanced Fund PI-ACC-GBP £ 1.10 - 0.01 0.75Fidelity Special Situations Fund W-ACC-GBP £ 29.16 - 0.10 -Short Dated Corporate Bond Fund Y ACC GBP £ 10.92 - 0.00 3.92Fidelity Sustainable Water & Waste W Acc £ 1.02 - 0.01 -Fidelity Sustainable Water & Waste W Inc £ 1.02 - 0.01 -Fidelity UK Growth Fund W-ACC-GBP £ 3.34 - -0.05 -Fidelity UK Select Fund W-ACC-GBP £ 2.90 - 0.03 2.51

Institutional OEIC FundsEurope (ex-UK) Fund ACC-GBP £ 6.60 - 0.10 0.59

Findlay Park Funds Plc (IRL)30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900FCA RecognisedAmerican EUR Unhedged Class € 119.86 - -2.57 -American Fund USD Class $ 141.35 - -3.08 0.00American Fund GBP Hedged £ 71.40 - -1.57 0.00American Fund GBP Unhedged £ 108.51 - -0.83 0.00

Foord Asset ManagementWebsite: www.foord.com - Email: [email protected]

FCA Recognised - Luxembourg UCITSFoord International Fund | R $ 43.37 - -0.32 -Foord Global Equity Fund (Lux) | R $ 15.27 - -0.26 -

RegulatedFoord Global Equity Fund (Sing) | B $ 18.60 - -0.32 0.00Foord International Trust (Gsy) $ 43.13 - -0.31 0.00

Franklin Templeton International Services Sarl (IRL)JPMorgan House - International Financial Services Centre,Dublin 1, IrelandOther International Funds

Franklin Emerging Market Debt Opportunities Fund PlcFranklin Emg Mkts Debt Opp CHFSFr 14.09 - 0.27 10.72Franklin Emg Mkts Debt Opp GBP £ 9.12 - 0.04 7.72Franklin Emg Mkts Debt Opp SGD S$ 20.17 - 0.51 5.30Franklin Emg Mkts Debt Opp USD $ 15.95 - 0.43 7.35

[email protected], www.funds.gam.comRegulatedLAPIS GBL TOP 50 DIV.YLD-Na-D £ 96.15 - 0.55 -LAPIS GBL F OWD 50 DIV.YLD-Na-D £ 93.78 - 0.22 -

Genesis Investment Management LLPOther International FundsEmerging Mkts NAV £ 7.21 - -0.16 0.00

HPB Assurance LtdAnglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490

International InsurancesHoliday Property Bond Ser 1 £ 0.49 - -0.01 0.00Holiday Property Bond Ser 2 £ 0.62 - -0.01 0.00

Intrinsic Value Investors (IVI) LLP (IRL)1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210FCA RecognisedIVI European Fund EUR € 22.18 - -0.19 0.00IVI European Fund GBP £ 26.73 - 0.01 0.35

Janus Henderson Investors (UK)PO Box 9023, Chelmsford, CM99 2WB Enquiries: 0800 832 832www.janushenderson.comAuthorised Inv FundsJanus Henderson Instl UK Idx Opps A Acc £ 0.85 - 0.00 -

Lloyds Investment Fund Managers Limited (1000)F (JER)PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555Other International Funds

Lloyds Investment Funds LimitedEuro High Income € 1.5450 - 0.0010 2.31High Income £ 0.8776xd - 0.0022 3.69Sterling Bond £ 1.6150 - 0.0050 2.06

Lloyds Multi Strategy Fund LimitedConservative Strategy £ 1.2890 - 0.0030 0.00


Growth Strategy £ 1.7920 - 0.0030 0.00Aggressive Strategy £ 2.4270 - -0.0030 0.00Global USD Growth Strategy $ 1.7240 - -0.0170 0.00

Dealing Daily

M & G Securities (1200)F (UK)PO Box 9038, Chelmsford, CM99 2XFwww.mandg.co.uk/charities Enq./Dealing: 0800 917 4472Authorised Inv FundsM&G Charibond Charities Fixed Interest Fund (Charibond) Inc £ 1.25 - 0.00 -M&G Charibond Charities Fixed Interest Fund (Charibond) Acc £ 42.59 - 0.00 -M&G Charity Multi Asset Fund Inc £ 0.76 - 0.00 -M&G Charity Multi Asset Fund Acc £ 83.18 - -0.20 -

MMIP Investment Management Limited (GSY)Regulated

Multi-Manager Investment Programmes PCC LimitedUK Equity Fd Cl A Series 01 £ 2012.16 2045.81 -148.51 0.00Diversified Absolute Rtn Fd USD Cl AF2 $ 1567.52 - 23.40 0.00Diversified Absolute Return Stlg Cell AF2 £ 1480.45 - 20.26 0.00Global Equity Fund A Lead Series £ 1446.38 1451.08 -48.72 -

Marwyn Asset Management Limited (CYM)RegulatedMarwyn Value Investors £ 340.40 - -14.66 0.00

Milltrust International Managed Investments ICAV (IRL)[email protected], +44(0)20 8123 8369 www.milltrust.comRegulatedBritish Innovation Fund £ 123.94 - 23.92 0.00MAI - Buy & Lease (Australia) A$ 123.94 - 21.42 0.00MAI - Buy & Lease (New Zealand)NZ$ 98.28 - 0.99 0.00Milltrust Global Emerging Markets Fund - Class A $ 102.65 - -0.50 0.00The Climate Impact Asia Fund (Class A) $ 101.81 - 0.21 -

Milltrust International Managed Investments [email protected], +44(0)20 8123 8369, www.milltrust.comRegulatedMilltrust Alaska Brazil SP A $ 70.57 - 0.67 -Milltrust Laurium Africa SP A $ 79.48 - 0.17 -Milltrust Singular ASEAN SP Founders $ 124.99 - -1.37 -Milltrust SPARX Korea Equity SP A $ 141.17 - 0.61 -Milltrust Xingtai China SP A $ 132.68 - -2.61 -

New Capital UCITS Fund PLC (IRL)Leconfield House, Curzon Street, London, W1J 5JBwww.newcapitalfunds.comFCA Recognised

New Capital UCITS FundsNew Capital China Equity Fund $ 230.95 - -3.31 -New Capital Dynamic European Equity Fund € 124.22 - -1.32 0.00New Capital Dynamic UK Equity Fund £ 109.34 - 0.17 0.00New Capital Global Alpha Fund £ 112.55 - -0.24 0.00New Capital Global Equity Conviction Fund $ 173.94 - -2.77 -New Capital Global Value Credit Fund $ 157.56 - -0.17 0.00New Capital Japan Equity Fund ¥ 1410.03 - 7.19 0.00New Capital US Growth Fund $ 382.33 - -16.40 0.00New Capital US Small Cap Growth Fund $ 165.30 - -3.50 0.00New Capital Wealthy Nations Bond Fund $ 153.66 - -0.16 0.00

Oasis Crescent Management Company LtdOther International FundsOasis Crescent Equity Fund R 10.95 - -0.11 0.71

Oasis Global Mgmt Co (Ireland) Ltd (IRL)Regulated

Oasis Crescent Global Investment Fund (Ireland) plcOasis Crescent Global Short Term Income Fund I - Class A Dist $ 0.99 - 0.00 2.22Oasis Crescent Global Equity Fund $ 31.82 - -0.61 0.48Oasis Crescent Variable Balanced Fund £ 8.91 - -0.01 0.00OasisCresGl Income Class A $ 11.02 - 0.00 -OasisCresGl LowBal D ($) Dist $ 11.97 - -0.12 1.02OasisCresGl Med Eq Bal A ($) Dist $ 12.90 - -0.15 0.36Oasis Crescent Gbl Property Eqty $ 7.54 - -0.05 1.48

Omnia Fund LtdOther International FundsEstimated NAV $ 595.25 - 11.14 0.00


Oryx International Growth Fund LtdOther International FundsNAV (Fully Diluted) £ 9.10 - -0.52 0.00

Orbis Investments (U.K.) Limited (GBR)28 Dorset Square, London, NW1 6QGwww.orbis.com 0800 358 2030RegulatedOrbis OEIC Global Cautious Standard £ 10.01 - 0.02 0.03Orbis OEIC Global Balanced Standard £ 14.20 - 0.00 0.00Orbis OEIC Global Equity Standard £ 17.17 - -0.08 0.00Orbis OEIC UK Equity Standard £ 6.62 - -0.06 0.00

Pictet Asset Management (Europe) SA (LUX)15, Avenue J.F. Kennedy L-1855 LuxembourgTel: 0041 58 323 3000FCA RecognisedPictet-Absl Rtn Fix Inc-HI EUR € 112.40 - -0.24 0.00Pictet-Asian Equities Ex Japan-I USD F $ 362.58 - 0.57 0.00Pictet-Asian Local Currency Debt-I USD F $ 183.12 - -0.06 0.00Pictet-Biotech-I USD F $ 998.43 - 6.29 0.00Pictet-CHF Bonds I CHF SFr 513.30 - 0.23 -Pictet-China Index I USD $ 185.25 - -2.46 -Pictet-Clean Energy-I USD F $ 127.56 - -2.33 0.00Pictet-Digital-I USD F $ 537.68 - -9.89 0.00Pictet-Em Lcl Ccy Dbt-I USD F $ 181.15 - -1.50 0.00Pictet-Emerging Europe-I EUR F € 376.23 - 4.13 -Pictet-Emerging Markets-I USD F $ 719.57 - 2.77 0.00Pictet-Emerging Markets Index-I USD F $ 312.17 - -1.99 0.00Pictet-Emerging Corporate Bonds I USD $ 137.93 - -0.05 0.00Pictet-Emerging Markets High Dividend I USD $ 131.39 - 1.08 0.00Pictet-Emerging Markets Sust Eq I USD $ 103.28 - 0.50 0.00Pictet-EUR Bonds-I F € 650.49 - 1.41 0.00Pictet-EUR Corporate Bonds-I F € 221.07 - 0.15 0.00Pictet-EUR Government Bonds I EUR € 180.13 - 0.43 0.00Pictet-EUR High Yield-I F € 283.18 - -0.26 0.00Pictet-EUR Short Mid-Term Bonds-I F € 137.44 - 0.09 0.00Pictet-EUR Short Term HY I EUR € 125.47 - -0.06 0.00Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 100.08 - 0.00 -Pictet-Euroland Index IS EUR € 152.80 - -2.36 0.00Pictet-Europe Index-I EUR F € 190.44 - -2.18 0.00Pictet-European Equity Selection-I EUR F € 614.14 - 6.53 0.00Pictet-European Sust Eq-I EUR F € 290.36 - 5.95 0.00Pictet-Global Bds Fundamental I USD $ 137.86 - -0.01 0.00Pictet-Global Bonds-I EUR € 193.02 - 0.37 0.00Pictet-Global Defensive Equities I USD $ 196.35 - -3.52 0.00Pictet-Global Emerging Debt-I USD F $ 467.08 - -1.72 -Pictet-Global Env.Opport-I EUR € 263.22 - 2.32 0.00Pictet-Global Megatrend Selection-I USD F $ 359.88 - -5.58 -Pictet-Global Sust.Credit HI EUR € 164.14 - 0.16 0.00Pictet-Greater China-I USD F $ 887.03 - 0.04 0.00Pictet-Health-I USD $ 361.69 - -3.62 -Pictet-SmartCity-I EUR € 213.02 - 1.88 0.00Pictet-India Index I USD $ 123.98 - -0.77 -Pictet-Indian Equities-I USD F $ 572.30 - -1.93 -Pictet-Japan Index-I JPY F ¥ 18319.44 - -184.78 0.00Pictet-Japanese Equities Opp-I JPY F ¥ 11424.90 - 24.84 0.00Pictet-Japanese Equity Selection-I JPY F ¥ 16365.69 - 26.93 0.00Pictet-LATAM Lc Ccy Dbt-I USD F $ 132.76 - -1.75 0.00Pictet-Multi Asset Global Opportunities-I EUR € 129.42 - 0.06 0.00Pictet-Nutrition-I EUR € 260.63 - 3.34 0.00Pictet-Pacific Ex Japan Index-I USD F $ 434.20 - 0.11 0.00Pictet-Premium Brands-I EUR F € 214.60 - 1.27 -Pictet-Russia Index I USD $ 79.68 - -2.07 0.00Pictet-Russian Equities-I USD F $ 83.32 - 1.05 -Pictet-Security-I USD F $ 333.02 - 3.47 -Pictet-Small Cap Europe-I EUR F € 1404.70 - 7.00 0.00Pictet-ST Emerg Local Currency Debt-I USD F $ 104.00 - -0.64 0.00Pictet-ST.MoneyMkt-I € 137.90 - 0.00 -Pictet-ST.MoneyMkt JPY I USD ¥ 100700.99 - -0.48 0.00Pictet-ST.MoneyMkt-ICHF SFr 119.63 - 0.00 0.00Pictet-ST.MoneyMkt-IUSD $ 146.01 - -0.01 0.00Pictet-Timber-I USD F $ 204.27 - 1.65 0.00Pictet-US High Yield-I USD F $ 180.21 - -0.57 0.00Pictet-USA Index-I USD F $ 311.31 - -8.89 0.00Pictet-USD Government Bonds-I F $ 769.28 - 2.26 -Pictet-USD Short Mid-Term Bonds-I F $ 144.87 - 0.03 0.00Pictet-USD Sov.ST.Mon.Mkt-I $ 109.69 - -0.01 -Pictet-Water-I EUR F € 414.40 - -6.16 -

Platinum Capital Management LtdOther International FundsPlatinum All Star Fund - A $ 131.67 - - -Platinum Global Growth UCITS Fund $ 12.59 - 0.00 0.00Platinum Essential Resources UCITS Fund SICAV USD Class E $ 7.41 - 0.04 0.00Platinum Global Dividend UCITS Fund $ 53.79 - -0.08 0.00

Polar Capital Funds Plc (IRL)RegulatedAutomation & Artificial Intelligence CL I USD Acc $ 14.68 14.68 -0.25 0.00Asian Financials I USD $ 380.62 380.62 -4.39 0.00


Biotechnology I USD $ 31.30 31.30 -0.22 0.00Emerging Market Stars I USD Acc $ 12.91 - -0.13 0.00European Ex UK Inc EUR Acc € 10.79 10.79 -0.11 0.00Financial Opps I USD $ 11.13 - -0.24 2.29GEM Income I USD $ 11.12 - 0.06 0.00Global Convertible I USD $ 14.77 14.77 -0.13 0.00Global Insurance I GBP £ 6.67 - 0.01 0.00Global Technology I USD $ 73.89 - -2.17 0.00Healthcare Blue Chip Fund I USD Acc $ 14.88 14.88 -0.10 0.00Healthcare Opps I USD $ 54.43 - -0.35 0.00Income Opportunities B2 I GBP Acc £ 2.09 2.09 0.00 0.00Japan Value I JPY ¥ 102.60 102.60 -0.76 0.00North American I USD $ 26.17 26.17 -0.75 0.00UK Absolute Equity I GBP £ 15.47 15.47 0.00 0.00UK Val Opp I GBP Acc £ 10.20 10.20 -0.01 0.00

Polar Capital LLP (CYM)RegulatedEuropean Forager A EUR € 172.79 - -2.41 0.00

Private Fund Mgrs (Guernsey) Ltd (GSY)RegulatedMonument Growth 08/09/2020 £ 478.88 483.33 -0.98 1.56

Prusik Investment Management LLP (IRL)Enquiries - 0207 493 1331RegulatedPrusik Asian Equity Income B Dist $ 159.75 - -0.77 4.73Prusik Asia Emerging Opportunities Fund A Acc $ 156.01 - -1.41 -Prusik Asia Fund U Dist. £ 206.27 - -1.64 0.00

Purisima Investment Fds (CI) Ltd (JER)RegulatedPCG B 266.93 - -1.79 0.00PCG C 260.94 - -1.75 0.00

Ram Active Investments SAwww.ram-ai.comOther International FundsRAM Systematic Emerg Markets Eq $ 185.44 185.44 -0.81 -RAM Systematic European Eq € 427.75 427.75 -5.41 -RAM Systematic Funds Global Sustainable Income Eq $ 116.38 116.38 -2.03 0.00RAM Systematic Long/Short Emerg Markets Eq $ 103.11 103.11 -0.09 -RAM Systematic Long/Short European Eq € 135.60 135.60 -0.43 -RAM Systematic North American Eq $ 319.80 319.80 -7.62 -RAM Tactical Global Bond Total Return € 154.79 154.79 -0.12 -RAM Tactical II Asia Bond Total Return $ 154.75 - -0.09 -

Ruffer LLP (1000)F (UK)65 Gresham Street, London, EC2V 7NQOrder Desk and Enquiries: 0345 601 9610Authorised Inv Funds

Authorised Corporate Director - Link Fund SolutionsLF Ruffer European C Acc 679.03 - -4.47 0.60LF Ruffer European C Inc 124.04 - -0.82 0.65LF Ruffer European O Acc 662.72 - -4.41 0.31LF Ruffer Equity & General C Acc 448.22 - 3.39 0.51LF Ruffer Equity & General C Inc 410.74 - 3.11 0.51LF Ruffer Equity & General O Acc 437.49 - 3.29 0.20LF Ruffer Equity & General O Inc 405.05 - 3.05 0.22LF Ruffer Gold C Acc 339.46 - -1.84 0.00LF Ruffer Gold C Inc 205.45 - -1.12 0.00LF Ruffer Gold O Acc 331.22 - -1.81 0.00LF Ruffer Japanese C Inc 145.96 - -1.56 -LF Ruffer Japanese C Acc 313.43 - -3.35 0.29LF Ruffer Pacific & Emerging Markets C Acc 357.15 - -3.93 1.30LF Ruffer Pacific & Emerging Markets C Inc 98.16 - -1.08 -LF Ruffer Pacific & Emerging Markets O Acc 348.27 - -3.85 1.02LF Ruffer Total Return C Acc 482.16 - 1.53 1.40LF Ruffer Total Return C Inc 313.09 - 0.99 1.41LF Ruffer Total Return O Acc 470.57 - 1.46 1.40LF Ruffer Total Return O Inc 305.40 - 0.95 1.42

RobecoSAM (LUX)Tel. +41 44 653 10 10 http://www.robecosam.com/RegulatedRobecoSAM Sm.Energy/A £ 22.27 - -0.25 1.32RobecoSAM Sm.Energy/N € 20.52 - -0.40 0.00RobecoSAM Sm.Materials/A £ 195.69 - 0.11 1.59RobecoSAM Sm.Materials/N € 204.42 - -1.70 0.00RobecoSAM Sm.Materials/Na € 133.31 - -1.11 1.57RobecoSAM S.HealthyLiv/B € 225.82 - -1.73 0.00RobecoSAM S.HealthyLiv/N € 218.03 - -1.66 0.00RobecoSAM S.HealthyLiv/Na £ 163.31 - 0.20 1.44RobecoSAM S.Water/A £ 286.97 - 0.40 -RobecoSAM S.Water/N € 250.94 - -1.87 -

Rubrics Global UCITS Funds Plc (IRL)www.rubricsam.comRegulatedRubrics Emerging Markets Fixed Income UCITS Fund $ 136.96 - -0.37 0.00Rubrics Global Credit UCITS Fund $ 17.39 - -0.01 0.00Rubrics Global Fixed Income UCITS Fund $ 182.88 - 0.28 0.00Q Rubrics India Fixed Income UCITS Fund $ 11.35 - -0.08 0.00


Rubrics India Fixed Income UCITS Fund $ 98.39 - -0.62 0.00

SlaterInvestments

Slater Investments Ltd (UK)www.slaterinvestments.com; Tel: 0207 220 9460FCA RecognisedSlater Growth 577.60 577.60 -2.80 0.00Slater Income A Inc 112.84 112.84 -0.08 5.22Slater Recovery 268.83 268.83 -0.58 0.00Slater Artorius 236.42 236.42 1.51 0.43

Stonehage Fleming Investment Management Ltd (IRL)www.stonehagefleming.com/[email protected] Global Best Ideas Eq B USD ACC $ 220.57 - -4.31 -SF Global Best Ideas Eq D GBP INC £ 256.92 - -1.97 -

Toscafund Asset Management LLP (UK)www.toscafund.comAuthorised FundsAptus Global Financials B Acc £ 3.24 - -0.02 4.89Aptus Global Financials B Inc £ 2.26 - -0.02 6.27

Toscafund Asset Management LLPwww.toscafund.comTosca A USD $ 321.86 - 44.14 -Tosca Mid Cap GBP £ 144.18 - 26.67 -Tosca Opportunity B USD $ 217.40 - 39.74 -Pegasus Fund Ltd A-1 GBP £ 28.00 - -8.90 0.00

Troy Asset Mgt (1200) (UK)65 Gresham Street, London, EC2V 7NQOrder Desk and Enquiries: 0345 608 0950Authorised Inv Funds

Authorised Corporate Director - Link Fund Solutions

Trojan Investment Funds

Trojan Ethical O Acc 117.99 - -0.03 0.10Trojan Ethical O Inc 117.76 - -0.03 0.09

WA Fixed Income Fund Plc (IRL)RegulatedEuropean Multi-Sector € 122.58 - 0.02 3.28

Zadig Gestion (Memnon Fund) (LUX)FCA RecognisedMemnon European Fund - Class U2 GBP £ 189.39 - 0.35 0.00


Data Provided by

www.morningstar.co.ukData as shown is for information purposes only. Nooffer is made by Morningstar or this publication.

Guide to Data

The fund prices quoted on these pages are supplied by the operator of the relevant fund. Details of funds published on these pages, including prices, are for the purpose of information only and should only be used as a guide. The Financial Times Limited makes no representation as to their accuracy or completeness and they should not be relied upon when making an investment decision. The sale of interests in the funds listed on these pages may, in certain jurisdictions, be restricted by law and the funds will not necessarily be available to persons in all jurisdictions in which the publication circulates. Persons in any doubt should take appropriate professional advice. Data collated by Morningstar. For other queries contact [email protected] +44 (0)207 873 4211. The fund prices published in this edition along with additional information are also available on the Financial Times website, www.ft.com/funds. The funds published on these pages are grouped together by fund management company. Prices are in pence unless otherwise indicated. The change, if shown, is the change on the previously quoted figure (not all funds update prices daily). Those designated $ with no prefix refer to US dollars. Yield percentage figures (in Tuesday to Saturday papers) allow for buying expenses. Prices of certain older insurance linked plans might be subject to capital gains tax on sales. Guide to pricing of Authorised Investment Funds: (compiled with the assistance of the IMA. The Investment Management Association, 65 Kingsway, London WC2B 6TD. Tel: +44 (0)20 7831 0898.) OEIC: Open-Ended Investment Company. Similar to a unit trust but using a company rather than a trust structure. Different share classes are issued to reflect a different currency, charging structure or type of holder. Selling price: Also called bid price. The price at which units in a unit trust are sold by investors. Buying price: Also called offer price. The price at which units in a unit trust are bought by investors. Includes manager’s initial charge. Single price: Based on a mid-market valuation of the underlying investments. The buying and selling price for shares of an OEIC and units of a single priced unit trust are the same. Treatment of manager’s periodic capital charge: The letter C denotes that the trust deducts all or part of the manager’s/operator’s periodic charge from capital, contact the manager/operator for full details of the effect of this course of action. Exit Charges: The letter E denotes that an exit charge may be made when you sell units, contact the manager/operator for full details. Time: Some funds give information about the timing of price quotes. The time shown alongside the fund manager’s/operator’s name is the valuation point for their unit trusts/OEICs, unless another time is indicated by the symbol alongside the individual unit trust/OEIC name. The symbols are as follows: ✠ 0001 to 1100 hours; ♦ 1101 to 1400 hours; ▲1401 to 1700 hours; # 1701 to midnight. Daily dealing prices are set on the basis of the valuation point, a short period of time may elapse before prices become available. Historic pricing: The letter H denotes that the managers/operators will normally deal on the price set at the most recent valuation. The prices shown are the latest available before publication and may not be the current dealing levels because of an intervening portfolio revaluation or a switch to a forward pricing basis. The managers/operators must deal at a forward price on request, and may move to forward pricing at any time. Forward pricing: The letter F denotes that that managers/operators deal at the price to be set at the next valuation. Investors can be given no definite price in advance of the purchase or sale being carried out. The prices appearing in the newspaper are the most recent provided by the managers/operators. Scheme particulars, prospectus, key features and reports: The most recent particulars and documents may be obtained free of charge from fund managers/operators. * Indicates funds which do not price on Fridays. Charges for this advertising service are based on the number of lines published and the classification of the fund. Please contact [email protected] or call +44 (0)20 7873 3132 for further information.

SEPTEMBER 10 2020 Section:Stats Time: 9/9/2020 - 18:57 User: gerry.white Page Name: MANAGED FUNDS 4, Part,Page,Edition: EUR, 15, 1


arts

A nd how is your day goingas a lab rat? That we areall now mere data — “extractable resources” — is the queasy stuff of

The Social Dilemma, a new documen-tary flawed in several places and still essential viewing. I urge you to a) see it and b) keep your phone nearby as you do. The subject is social media and big tech beyond. If you have kept pace with debate on the issue, it may be that no single detail is revelatory. Collectively, it adds up to a smoking gun. Once future generations have combed the rubble of our civilisation, they might stage a gala screening. So this is how it ended. Not with a bang but with a selfie.

Such are the stakes, director Jeff Orlowski argues. Even-handedness is not the aim. Instead, the film is filled with penitents — engineers and execu-tives who once held senior roles at Face-book, YouTube, Google and Twitter, the creators of Internet 2.0 now frantic with panic. The mood is that of tearful chil-dren in the embers, never wanting to play with matches again. Justin Rosen-stein, co-creator of the Facebook “like” button, sadly describes his original goal as spreading positivity. No one was actively hoping for a mental health cri-sis and the corrosion of democracy.

Instead, the engineers were simply too good at ensnaring users, the execu-tives too callow not to ask for more. Dopamine honeytraps grew stickier. The film is good on the psychological mechanics, addiction a design feature. Not everything is so efficient. Bizarrely, Orlowski has his interviewees share the screen with a crayon-simple dramatisa-tion of the havoc wreaked by online life on an ordinary family. Dark algorithmic forces are made flesh by actor Vincent

Kartheiser. (Fans of Mad Men will at least know what became of the unctu-ous Pete Campbell.)

#winceinducing. Luckily, the film gets back to the facts. Consequences don’t

vanish just for being unintended, and Orlowski carefully details the skyrock-eting levels of depression among chil-dren and teenagers; the flat-earthers and white supremacists; the genocide in Myanmar; the Covid misinformation; the imperilling of objective truth and social disintegration. The film works up a head of steam but the real coup is get-ting at why — what all this has been for. The answer is grubby, humdrum and worth repeating — the meaning behind the maxim “when the product is free, you are the product” and all the bleak, dizzying implications. Human futures at scale, the film calls it. As I say, keep your phone at hand. Then consider pressing “delete”.On Netflix now

You never know quite what mercurial British director Sally Potter has in store. To watch any Potter film is to agree first to being vigorously spun around, only finding on removal of the blindfold the nature of the mystery prize. Maybe the movie will be a grand multi-period adventure sprung from Virginia Woolf (Orlando), a political love story written in iambic pentameter (Yes) or a chinot-to-bitter marital comedy set in town-house London (The Party). Fitting that her new movie opens in the dark, with a nag of buzzers. Where are we this time?

We are on The Roads Not Taken, a sad, timely story of family and fragility. The star is Javier Bardem — or Javier Bardems, the actor playing more than one role for reasons we will discover later. First though, he is Leo, flat out in bed in a dowdy Brooklyn apartment, those Easter Island features staring about uncertainly as if he too is waiting for Potter to orient him. The task falls to his daughter Molly (Elle Fanning), har-ried from the off. With the M train rat-tling by the window, two things become apparent. One, that Leo is unwell, stricken with early onset dementia, trapped in an unknowable inner land-scape. The other, that Molly is his carer. The business of the day is a testing of the senses — a visit to the dentist and an eye exam. Between them will surely be drama enough.

But no. Potter spins us around again. You remember those other Bardems? Soon we meet him a second time, now relocated to rural Mexico, wholly lucid but in discord with his wife, played by Salma Hayek. Then once more, freshly recast as a blocked writer on a Greek island. Not only are these all Bardem, we realise — each one is Leo. Publicising the film, Potter has spoken of caring for her brother before his death from the degenerative Pick’s disease — and imag-ining his silent withdrawal as an exit into other lives. And so while the dentist awaits, each Leo makes an odyssey in yellow cab, pick-up truck or rowboat, all united in feeling something is missing.

Snarkier voices might say they know the feeling. In fact, Potter has been care-ful to connect the dots. The storylines aren’t confusing — but they are lop-sided, Leo’s other lives less parallels than addenda. The film lacks no power-ful moments, they just cluster in New York, where the emotion has heft and the trials of dementia are sensitively

handled. Even then, the structure is trouble. Seeing Bardem so often else-where only underlines that his first, ail-ing Leo is a performance. Fanning is the secret weapon, a study in chipper exhaustion that carers will surely recog-nise. So too the cloud of melancholy, the sorrow all else fades behind.In UK cinemas from September 11

Look on my works and despair, announces The Painted Bird, Vaclav Marhoul’s abyssal wartime fable. Take note of both sides of the equation. With rare commitment, Marhoul sets himself to portraying such all-consuming human depravity, the only response is to crumple. Yet how artfully he goes about it — his gaze rapturous, every black-and-white image so perfectly composed you might hang it on the wall. Someone else’s wall.

Many of those images involve an unnamed boy — played with astonish-ing poise by child actor Petr Kotlar — adrift in rural eastern Europe, some-time during the second world war. He hurtles by us, shielding a pet ferret from other children. Does the result need a spoiler warning? But it is the infernal world of adults in which he spends the film, hounded, beaten, bought and sold by villagers regressed into the medieval. He will only bring misfortune, scowls a

pale-eyed Udo Kier, but misfortune seems at home already, here amid the pristine vistas of madness and filth.

A lifetime ago in 2019, the film became notorious during festival season, all manner of walkouts provoked by the endless grotesquerie the boy is witness to or victim of. The horror show can feel parodic, even banal, risking the sense of a stunt. (Bresson did not do gouged-out eyeballs.) Yet to stay with the film is at least to be given a choice to see redemp-tion — the faintest of question marks added to that invite to despair.In UK cinemas and available to streamfrom September 11

Fifteen years before Bong Joon-ho stormed the Oscars with his thriller of class and interiors Parasite, the South Korean director released his second film, Memories of Murder. Did any of us know what would eventually follow? At the time, this singular movie — now re-released in the UK — felt like enough to celebrate already, a wildly original crime procedural whose switchback tone left you woozy. That sense of lost bearings was shared by the hero — an oafish cop played by Bong’s eternal muse Song Kang-ho, tasked with inves-tigating South Korea’s first recorded serial murders. (The cases were real, dating back to 1986, the year in which the film is set.)

Now, the re-release offers another outing for a film unmissable on its own terms and as a signpost. If you’re looking for it, Parasite winks out from the first sight of Song — patriarch of the dank Seoul basement in Bong’s most recent film — slumped on the back of a tractor, en route to a crime scene. But most tell-ing of all is that tone, the slow, deep nuancing of what once felt cartoonish, the antic slapstick that suddenly turns sombre. With Bong, you never see what’s coming. And then you’re faceto face.In UK cinemas and available to streamfrom September 11

You won’t believe what happened next!

Above: contributors to ‘The Social Dilemma’ include (from left) Tristan Harris, formerly of Google; Sandy Parakilas, formerly of Facebook; and Roger McNamee, author of ‘Zucked: Waking Up to the Facebook Catastrophe’. Right: Salma Hayek and Javier Bardem in ‘The Roads Not Taken’

film

DannyLeigh

The Social DilemmaJeff OrlowskiAAAEE

The Roads Not TakenSally PotterAAAEE

The Painted BirdVaclav MarhoulAAAAE

Memories of MurderBong Joon-hoAAAAA

Left: Petr Kotlar in ‘The Painted Bird’. Below: Song Kang-ho, right, in ‘Memories of Murder’

SEPTEMBER 10 2020 Section:Features Time: 9/9/2020 - 17:48 User: david.cheal Page Name: ARTS LON, Part,Page,Edition: EUR, 16, 1


FT BIG READ. FUTURE UK-EU RELATIONS

Boris Johnson is considering whether to walk away from talks with Brussels with no trade deal in place. But in order to have a more activist state, the UK could make exports to its biggest market more expensive.

By George Parker, Jim Brunsden and Peter Foster

Tuesday this plan would “break inter-national law in a specific and limited way”. Mr Barnier will make it clear that the starting point for a future deal is full respect of the international treaty nego-tiated by the British premier and rati-fied by parliament less than a year ago.

On the substance, the issue of fish-eries is seen by officials on both sides as totemic but solvable. Mr Barnier reiter-ated on Monday that Brussels has moved from previous “maximalist” positions on fishing waters and was looking to secure a compromise.

“I think a deal is possible,” he said. “It is a question of goodwill.”

EU officials say the current UK pro-posals would effectively double the Brit-ish catch, an outcome Brussels argues would devastate EU coastal commun-ities. Brussels intends that this week’s discussions on fish will focus on govern-ance arrangements for any future deal, given the current difficulties in making headway on actual catching rights.

The real sticking point is the question of state aid: notably the insistence by Mr Johnson and his powerful chief adviser Dominic Cummings that Britain must be free to hand out state support to com-panies to help regenerate the economy after the Covid-19 crisis, to transform “left behind” regions and to put state “oomph” behind the British tech sector.

The irony of this demand is not loston veteran diplomats. Kim Darroch, Britain’s former ambassador in Brussels and Washington, recalls how Treasury officials working for the Thatcher gov-ernment in the 1980s designed the EU state aid rules precisely to foster fair competition and to stop other European countries engaging in a subsidy race.

“We were the biggest enthusiasts in the EU for a tough state aid regime,” he says. “People who were involved in devising that regime will have their jaws hanging open — or will be spinning in their graves — that this Conservative government’s big idea is to intervene to create a UK equivalent of Silicon Valley.”

Downing Street insisted yesterday that it did not want to “return to the 1970s approach of trying to run the economy or bailing out unsustainable companies”, but said it would not design its new subsidy control regime until next year. Brussels wants details now.

But it is the precise opposite of what many in Brussels feared would happen after Brexit. Debate initially focusedon whether Britain would becomean offshore “Singapore-style” economy,

competing with the EU through low taxes and light regulation. But Mr John-son, who needs higher taxes in a post-pandemic world to pay for spending pro-grammes in former Labour-supporting northern seats, has already reversed pre-vious plans to cut British corporation tax and rates look set to go higher.

As for lighter regulation, the public has little appetite for such an agenda. Mr Johnson’s hopes of negotiating a trade deal with the US have alreadyrun into trouble as the British publicand farmers resist the idea of imported hormone-treated beef or chlorine-soaked chicken.

‘Pivot to sovereignty’

The problems encountered in trying to strike ambitious trade deals with the US — or indeed with any other major econ-omy — have delivered another blow to the post-Brexit dreams of the Euroscep-tics. Efforts to secure a trade deal with Japan have revealed that Tokyo will not grant Britain a better deal than it cur-rently enjoys through its membership of the EU. Liz Truss, trade secretary, has tried to win special treatment for mak-ers of British cheese — notably Stilton — to put a Union Jack stamp on what would essentially be a cut-and-paste of the existing EU-Japan deal.

Mr Johnson’s free-trading rhetoricof February 2020 already seems some-what archaic. “Free trade is God’s diplo-macy,” he said in a speech at the Royal Naval College in Greenwich, quoting Richard Cobden, a 19th-century cam-paigner for free trade. Pointing a finger at Brussels, Washington and China, he said: “Tariffs are being waved around like cudgels.”

Government insiders say Mr Johnson now accepts this problem and is quietly shifting his post-Brexit rhetoric away from free trade to notions of sover-eignty: a sort of “Britain first”, go-it-alone approach which appeals to the populist and interventionist leaningsof Mr Cummings and has echoes of US President Donald Trump’s agenda.

This “pivot to sovereignty” would allow Mr Cummings the freedom to pur-sue his vision of an activist state pro-moting new technologies. “He certainly sees state aid as an important part of the toolkit,” says one friend of Mr Cum-mings. Others in Downing Street say the adviser is telling Mr Johnson that state aid and the principle of sovereignty are so important that a no-deal Brexit is a price worth paying to secure them.

and EU jobs. One wonders whetherthis is really a negotiation or puremasochism.”

Fishing and subsidies

On the face of it, a deal on a free trade agreement should be within the grasp of Lord Frost and Mr Barnier when they sit down for what are likely to be tense talks this week. Dominic Raab, foreign secretary, claimed last weekend that there were only two “outstanding bones of contention”: one relates to the distri-bution of fishing quotas, the other to a state subsidy control regime.

The mood has been soured by the rev-elation in the Financial Times this week that while Lord Frost and Mr Barnier are talking about future relations, Mr Johnson is planning to legislate to start overriding parts of the Brexit with-drawal treaty he negotiated with the EU last October — the so-called Northern Ireland protocol. Brandon Lewis, the Northern Ireland secretary, admitted on

I n an economy devastated by the impact of the coronavirus pan-demic, Britain can boast at least one new boom industry — customs.

By some industry estimates, which ministers do not dispute, as many as 50,000 people could find new workas customs agents, facilitating trade between Britain and the EU under new Brexit arrangements. This army of form-fillers could soon start to rival the actual British Army in size.

The party of Margaret Thatcher is now overseeing the unwinding of oneof her biggest projects: the creation ofa vast EU single market, where goods and services flowed unimpeded across national borders in Europe.

Lorry parks and inspection pointsare being created to facilitate customs controls between Britain and the EU. More than £350m is being spent to help companies in Britain overcome red tape spawned by Boris Johnson’s Brexit deal to enable them to trade with Northern Ireland, another part of the UK.

This is all happening to prepare for what the prime minister says is hispreferred option of a tariff-free trade deal with the EU, when the Brexit transi-tion period expires on December 31.

But even that limited trade agree-ment is not a certainty. As a crucial eighth round of EU trade talks take place in London this week, Mr Johnson is considering whether to inflict even more friction on trade between theUK and its biggest market by severing ties with the 27-member bloc at the

end of the year with no trade deal at all. David Frost, Britain’s chief negotiator, said ahead of talks with Michel Barnier, his EU counterpart, that unless Brussels respected the UK as “a sovereign state” — giving it freedom to chart its owneconomic destiny — then reluctantly Britain’s new existence outside the EU would start without a trade deal. “If they can’t do that in the very limited timewe have left, then we will be trading on terms like those the EU has with Aus-tralia. We are ramping up our prepara-tions for the end of the year.”

An “Australia-style” deal is the euphe-mism preferred by the Johnson govern-ment to describe a relationship withthe EU that does not include a free trade deal. Unlike a “Canada-style deal”, which abolishes tariffs but spawns a mountain of additional paperwork and customs checks at the new trade border, a no-deal Brexit would involve tariffs and quotas on British goods as well, making exports more expensive.

Mr Johnson is reluctant to say how much this would cost the economy. When asked why there have been no recent impact assessments of thegovernment’s trade options, Number 10 says: “The economic impacts of our trade deal with the EU has been much debated in the last four years andthere are many economic studies onthis issue.”

The most recent official estimates in 2018 reckoned the UK would miss out on 4.9 per cent of future income over15 years if it left the bloc with a basic trade deal. Under a no-deal scenario, that would rise to 7.7 per cent overthe same period, compared with staying within the bloc. Sam Lowe, a trade expert at the Centre for European Reform and an adviser to the UK gov-ernment, says a no-deal exit would also complicate other aspects of Britain’s dealings with the EU, tarnishing rela-tions for years to come.

But Mr Johnson insists this would nev-ertheless be a “good outcome”, arguing that it would allow Britain to adoptits own policies free from meddling by the EU, which insists the UK must stay close to its rules that limit the amountof aid states can give to their domestic industry.

The big calculation for the primeminister in the coming days and weeks is whether “no deal” is worth the politi-cal and economic price — especially at a time when the economy is facing itsbiggest crisis since the second world war and Scottish independence is back on the agenda.

One EU diplomat says: “Walking away from the table and going for ano-deal will hit the UK economy and UK jobs much harder than the EU economy

‘Going for a no-deal will hit the UK economy hard. One wonders whether this is really a negotiation or pure masochism’

But Nick Macpherson, former chief official at the UK Treasury, recalling state rescues in the 1970s of “national champions”, tweeted: “Believe me, this is not an issue to go to the wall on.”

Since the coronavirus crisis ravaged the UK economy, with gross domestic product plunging 22 per cent in the first half of 2020, some Conservatives have pushed for a “clean break” no-deal Brexit partly because its effects would be small compared with the current crisis.

Thomas Sampson, an associate pro-fessor at the London School of Econom-ics, says this calculation was profoundly mistaken because most of the economic losses caused by coronavirus would be recovered, while those from Brexit are permanent. “Covid-19 is likely to cause more job losses than Brexit and greater swings in output, but the economy in 2035 may bear more scars from Brexit than from Covid-19,” he says.

Most macroeconomic models suggest the greatest advantage of EU member-

ship is reducing regulatory burdens “behind the border”. Even under aCanada-style free trade agreement — with customs controls but no tariffs — those new regulatory burdens would fall on British companies.

The difference with no deal is in the additional cost of tariffs, which are important for sectors such as agricul-ture and carmaking, but not large in most other sectors. British-made cars would see tariffs of 10 per cent imposed by the EU, while Michael Gove — now the minister in charge of no-deal plan-ning — warned last year that British beef and sheep meat exports would be hit by tariffs of at least 40 per cent.

Mr Lowe argues that a no-deal out-come would probably also have negative knock-on effects. It might make it harder for Britain to secure side dealsin areas such as financial services and data, or to agree bilateral “easements” agreements with third countries to reduce bureaucracy at the border.

A deal, he says, “creates a framework for future co-operation. It’s worth quite a lot and could lead to further integra-tion under a different government in future”. Although Mr Johnson calls a no-deal outcome an “Australia-style deal”, Canberra has spent the past two years trying to negotiate a free trade agree-ment with the EU. Ultimately trade experts believe Britain would be back in Brussels, trying to do the same.

‘We’re ready for a clean break’

Opinion is divided in the Johnson gov-ernment about whether the primeminister is willing to make the compro-mises on issues such as fish and state aid needed to get a deal, or whether his tough talk about no deal will be backed by tough action. One Whitehall official says: “A lot of this is theatrics. We’re not yet at the final endgame when a deal is going to be done.”

Some believe that Mr Johnson has not yet made up his own mind whether to follow the advice of Mr Cummings and go for a hard Brexit, or whether to make the concessions to secure a free trade agreement. A former Tory cabinet min-ister believes the EU is right to take the threats seriously: “The EU is finally waking up to the fact we are an inde-pendent nation and the game is changed,” he says. “We are ready and willing to have a clean break.”

Failure to secure an amicable trade deal with the EU could also raise further questions about the prime minister’s competence and increase support for independence in Scotland, which voted against Brexit. But Mr Johnson this week said he wanted a deal in place by mid-October or he would walk away from the talks. “If we can’t agree by then, then I do not see that there will be a free trade agreement between us, and we should both accept that and move on,” he said.

Some EU officials are not sure Mr Johnson has thought it through. “There’s a reason why Australia is cur-rently negotiating a trade deal with the EU,” says one. Mr Barnier, speaking ahead of his latest visit to London, said simply: “Sometimes in the UK I hear people talking about the opportunity of a no-deal. Good luck. Good luck.”

Additional reporting by Chris Giles and Sebastian Payne

‘Covid-19 is likely to cause more job losses than Brexit, but the economy in 2035 may bear more scars from Brexit’

No-deal Brexit for a bruised economy?

David Frost and Michel Barnier, above right, are on their eighth round of EU trade talks. Below: special adviser Dominic Cummings sees ‘state aid as an important part of the toolkit’. Bottom: lorries near Dover; thousands more customs officials will be needed to handle UK-EU red tape — Main image: FT montage

50,000Number of customs agents who could be needed to facilitate trade between Britain and the EU under new Brexit arrangements

£350mSum being spent to help companies in Britain to enable them to trade with counterparts in Northern Ireland

7.7%Percentage of future UK income lost over next 15 years in ano-deal scenario, compared with staying in the bloc

SEPTEMBER 10 2020 Section:Features Time: 9/9/2020 - 18:31 User: alistair.hayes Page Name: BIGPAGE, Part,Page,Edition: EUR, 17, 1


THURSDAY 10 SEPTEMBER 2020

Britain’s Conservatives have long prided themselves as being the party of law and order. Now, after an extraordi-nary admission in parliament, it seems they are the party of “specific and lim-ited” law and order. Answering ques-tions about legislation which would override certain provisions of the Brexit withdrawal agreement, Bran-don Lewis, the Northern Ireland secre-tary, departed from the government’s previous line that it was merely inter-preting the law narrowly to admit that, yes, this was a breach, but only in “a specific and limited way”.

The issue concerns how the protocol on Northern Ireland is implemented, and among Conservatives and Brexit-ers there is significant sympathy for the government’s argument on the sub-stance. Others regard this as a gambit in talks with the EU on a new trade deal. Either way it has already prompted the head of the govern-ment’s legal department to resign.

Regardless of the rights and wrongs of the Brexit argument, breaching an international treaty — one that Prime Minister Boris Johnson signed — is a dangerous moment for his party and the country. This instance may be lim-ited and specific. The principle is not.

A fundamental UK strength has been the belief that it is a keeper of its word and respecter of the law. That once sac-rosanct reputation is at stake and the price of losing it is incalculable.

The row should also force even allies to reappraise moves to reform the judi-ciary and judicial reviews. A panel under a former Tory justice minister, Lord Faulks, is looking at curbing the powers of judges to intervene in what it argues are political decisions. Concern over creeping judicial over-reach is not limited to the Tories. But Mr Johnson’s team is also driven by fury over the 2019 Supreme Court ruling declaring his suspension of parliament illegal.

In all the institutions this govern-ment wishes to reform — the courts, the independent civil service or the BBC — there are defects and deficiencies which any government is entitled to address. But critics have long discerned a systematic attack on the vital checks and balances of the state, to remove impediments to its will. The apparent nonchalance with which ministers are prepared to disregard inconvenient law means even Conservatives need to take this criticism seriously.

The prime minister’s argument is that parliament is sovereign and should not be overruled by foreign powers or even unelected judges. The danger — one highlighted in the row over parliament’s suspension — is that Mr Johnson’s circle actually believes it is the government, rather than parlia-ment, that is sovereign.

At a delicate stage in the Brexit proc-ess, Conservatives may be wary of defying the government and exposing themselves to the charge of helping the EU against the UK. But they should reflect on the fate of the US Republican party as it failed, time and again, to check the constitutional excesses of Donald Trump. There is more than a whiff of the Trump approach to deal-making in this government’s actions.

UK Conservatives are thus facing their Trump moment. This will not be the last time they face such a challenge from a government whose disdain for parliament and process is apparent. If laws can be broken for reasons of inconvenience, which others might the government choose to disregard?

Tories who have voiced private con-cern may have to side with the opposi-tion to strike out the key passage in the legislation. It will be extremely uncom-fortable for them. But the only way to prevent this trend accelerating is to show that parliament truly is sovereign and that it stands for the rule of law.

Tory MPs should prevent government from overriding EU deal

The UK’s reputation for rule of law is in jeopardy

When the coronavirus pandemic swept through the world’s cities this spring, office workers had to hurry home. Tak-ing their laptops with them, they entered a new world of meetings by Zoom call and remote working with their families, or flatmates, in the next room. A surprising number found they liked it.

Not having to take crowded public transport to work, or juggle working schedules awkwardly with partners, has been an unexpected boon. Even chil-dren bursting into rooms when their parents are on video calls have been treated indulgently. Some employees yearn to go back to the gossip and inter-play of office life, but others wonder whether they ever want to return.

Until the emergency ends, it is impossible for many employers to insist on them resuming their old ways. There may not be room in open plan offices for staff to socially distance at anything like full occupancy. Although workers in many countries have largely returned to the office, those in cities such as London and New York remain wary.

Some companies are sanguine: Google has told staff they can work from home until next summer, and Twitter has said they can choose to do so “for ever”. But others, losing the ability to see what workers are doing, and wondering whether they can sus-tain corporate cultures, are worried.

The pandemic struck in an erawhen technology and globalisationhad loosened the bonds between employees and workplaces. Companies have not been slow over recent decades to exploit this, outsourcing some tasks — and even whole departments — to low-wage countries. Now, they face employees who want virtual globalis-ation to work both ways.

Homeworking can be at least as effective as being in an office. A study

of a Chinese travel agency that let staff pick between working from home orin a call centre found that the self-selecting home workers were signifi-cantly more productive.

But companies have legitimate con-cerns. Apple is among those that have invested in large open plan offices designed to encourage interaction. Nicholas Bloom, the Stanford univer-sity author of the Chinese travel agency study, fears a longer-term “slump in innovation” from mass homeworking.

Employees also need to be careful about what they wish for. It has been relatively easy to remain connected with colleagues whom they already knew well by video call during the emergency but those bonds would be stretched in the longer term. It would also be harder for new recruits who have never known office life.

More brutally, companies whose staff move out of cities may question why they need to offer them city-level remuneration. Some will also recon-sider whether to employ as manypeople in countries with high wages and legal protections. Coming to work is itself a show of commitment and employees who absent themselves from workplaces completely risk being ignored or, in time, discarded.

When the pandemic eases, a new compact is needed between employers and their staff to establish new patterns that benefit both sides. It is clear that many who commuted five days a week will not want to return to it; they may be happier and more productive with a mixture of home and office working.

The end of the office may be techno-logically possible but it would not bein the long-term interests of business or society. The pandemic has made many question the way they live and work, but most will seek continued commitment with more flexibility, not permanent revolution.

Pandemic has made employees want to look at their work-life balance

Companies need a new homeworking compact

Nord Stream 2 imperils the EU’s green ambitions There are very strong additional reasons for Germany to scrap the Nord Stream 2 pipeline (“Merkel faces calls to scrap Nord Stream 2 after Navalny poisoning”, September 4). The 55bn cubic metre (bcm) of gas piped annually from Russia, when combusted, will emit 110m tonnes of CO2. Also, Russia has huge methane leakages of about 8m tonnes annually in its fossil gas operations as assessed by the International Energy Agency.

We calculate the total emissions of Nord Stream 2 will therefore generate up to 165m tonnes a year of CO2 equivalents, considering the more powerful global warming effect of methane compared with CO2 per tonne of gas. Together with Gazprom’s Nord Stream 1, which also pipes about 55 bcm of fossil gas a year to Europe, these two pipelines alone would account for about one-tenth of present EU CO2 emissions.

If Germany and the EU take climate change seriously, they must strive to significantly enhance the EU climate goal to achieve an about 55 per cent reduction in carbon pollution by 2030 as envisaged by the commission president, while stepping up renewable energy deployment and moving to a legally binding carbon-neutral Europe by mid-century.

In turn, this requires energy-related CO2 emissions to be almost zero. Any new fossil fuel infrastructure like Nord Stream 2 that will last for many decades is counterproductive.Stephan SingerSenior Climate Science and Global Energy Policy Advisor, Climate Action Network InternationalBrussels, Belgium

Sino-US ties face choppy waters even if Biden wins Donald Trump’s announcement that he intends to decouple trade with China is more than just campaign rhetoric (September 8). What has occurred in the past few months is a rapid collapse in relations between two superpowers, not seen since the days of the cold war. Standing at the White House lectern, the US president may have hammered the final nails into the coffin of US-China trade deals and potentially set the keynote for US foreign policy for years to come.

Relations will not improve overnight, even if Mr Trump loses in November. Indeed, Joe Biden is far more hawkish on China than many assume, albeit possibly for moralistic rather than economic reasons. Regardless, the current administration may have strained relations to such an extent that Mr Biden would find it near impossible to chart a different course. Even if the gunboat diplomat leaves the White House, it will not be smooth sailing for either nation, and we can expect a regular barrage of sanctions and other punitive measures from both sides for the foreseeable future.Leigh HanssonPartner, Reed SmithLondon EC2, UK

Informing villagers is key in India’s Covid-19 battleIn reference to Amy Kazmin and Jyotsna Singh’s article (Report, September 9) Covid-19 continues to march aggressively in India, especially in smaller towns and villages. At the rate of 80,000 to 90,000 new cases a day, India will soon push the US in to second position to become the most Covid-19 infected country globally. This would be horrendous, for it is difficult to manage the disease in the villages, where two-thirds of Indians live.

Villagers need to be made aware of Covid-19 and its severe dangers. Regional governments should deploy the radio to communicate with rural dwellers, since it has 99 per cent reach in India. A special rural Covid-19 campaign should be aimed at rural women. If the housewives are convinced about the dangers of Covid-19, they will galvanise their families. The health authorities should also use traditional rural media, like wall paintings, to spread awareness of Covid-19 and underscore the importance of wearing face masks and social distancing.Rajendra AnejaMumbai, India

Electricity watchdog risks the network’s reliability Your wittily titled Lex article “National Grid/Ofgem: unhappy amperes” (September 8) correctly focused on the regressive price controls that Ofgem is seeking to apply to National Grid. But the issue is wider: Ofgem is taking the same approach to all UK gas and electricity network operators with the same implications for diminished future investment and the reliability of our most critical infrastructure assets.

Ofgem’s approach makes no sense. First, our energy networks need very substantial investment. This is necessary to increase basic resilience and more investment is required to adapt our networks to a post-carbon world. We cannot meet our own legislated-for goals without this.

Second, enforcing a reduction in planned investment at precisely the time that we want to stimulate economic growth in the UK is at odds with all other current public policy.

Third, the UK government wants to encourage infrastructure investment across all sectors. This has to be financed. Ofgem has in the past recognised the benefits of a settled and fair regulatory regime in attracting capital to the UK. Given the volumes of capital required to meet the UK’s ambitions, Ofgem is unwise to gamble on changing this approach now.

Fourth, Ofgem has misjudged consumer benefit. Consumers will benefit more from reliable, high quality energy networks optimised for renewable generation than from a small one-off and unsustainable reduction in current network costs.Giles FrostChairman, Amber InfrastructureLondon SE1, UK

Pret’s dream of echoing ice cream vans to come true?Sarah O’Connor (Opinion, September 2) writes that Pret A Manger needs to deliver to the suburbs with a jingle playing van, and your headline in the report of September 5 says it will (just not sure whether it will be with musical accompaniment) — the amazing influence of the FT!Raj ParkashLondon W4, UK

Correction

c Retail investors in SoftBank own 10 per cent of the Japanese conglomerate, rather than 30 per cent as incorrectly stated in an article and Lex note on September 8.

“The character you mentioned”, “a certain political force”, “whom you have named” — Vladimir Putin and his senior officials have executed various verbal somersaults to avoid speaking Alexei Navalny’s name over the past few years, in a bid to deprive him of publicity and legitimacy.

To that list we can now add “the Berlin patient”, the latest Kremlin-approved moniker for the Russian president’s most prominent rival, a he who must not be named bogeyman. Mr Putin’s squeamishness on this point is a quirk of Russian politics — an at times farcical attempt to pretend the activist, his campaigns against corruption and the protests he organises, which draw tens of thousands to the streets, do not exist.

The charade has now ceased to be amusing. Mr Navalny was poisoned with the Soviet-developed, military-grade nerve agent novichok last month while flying back to Moscow from Siberia. He was evacuated to a Berlin hospital two days later, and awoke from a coma on Monday. Western leaders, suspecting Moscow may have played a role in the poisoning, have rushed to his aid. Mr Navalny is “the victim of a crime intended to silence him”, said German chancellor Angela Merkel.

Still the Kremlin maintains its boycott. Asked whether Mr Navalny’s life-threatening situation meant it was time to start using his name, Mr Putin’s spokesman Dmitry Peskov told reporters: “He is a patient, and he is sick. That’s exactly what we call him.

We still wish him a speedy recovery.” The poisoning, which is likely to leave the 44-year-old with long-term health problems, “doesn’t change the essence of the matter”.

Little wonder that Mr Navalny’s supporters do not expect the government to conduct a thorough investigation into his poisoning and punish those responsible. In fact, Russian officials insist that no traces of poison were found in Mr Navalny’s body during the two days he spent in a Siberian hospital before his airlift to Germany. Moscow has also sought to discredit the German conclusion that novichok — the same agent that was used in the attempted assassination of former double agent Sergei Skripal by Russian intelligence agents in the UK in 2018 — was to blame.

“It wasn't novichok. That’s for certain,” Alexander Sabayev, the chief toxicologist of the region where Mr Navalny was first hospitalised, said on Tuesday. “It wasn’t poisoning at all . . . that is some kind of fantasy.” Instead, potential ailments that could have caused the 19-day coma include stress, prolonged sun exposure or a skipped breakfast, according to Russian doctors.

Vyacheslav Volodin, speaker of Russia’s parliament and a close aide to Mr Putin, has even suggested German doctors may have poisoned Mr Navalny themselves in “a planned action against Russia in order to impose new sanctions . . . and try to restrain the development of our country”. The head of Russia’s foreign

intelligence service said the same. Seeking to discredit evidence

provided by western governments and suggesting an anti-Russian conspiracy is an old tactic. The same rhetoric was used following the attack on Mr Skripal, when British intelligence services published evidence that two Russian operatives had travelled to the UK to carry out the attempted murder.

London maintained it had more evidence against the Russians but was withholding it to use in a potential future trial. Moscow countered that without seeing all the evidence, or being allowed to conduct a joint inquiry, it could not be sure the British conclusion was accurate.

A similar stand-off now is likely. “It’s time to show the cards, because it is obvious to everyone: Berlin is bluffing, catering to some vicious political fuss,” Maria Zakharova, spokeswoman for Russia’s foreign ministry, said on Tuesday.

Some European countries have called for fresh sanctions against Russia to punish the use of a banned chemical weapon. Others believe Ms Merkel should withdraw German support for the controversial Russian gas pipeline currently under-construction, Nord Stream 2.

The Kremlin has waved away such threats as “absurd initiatives” but, as with Mr Navalny’s name, it may find that ignoring something does not make it go away.

[email protected]

The Kremlin’s nameless foe cannot be ignored much longer

LettersEmail: [email protected]

Include daytime telephone number and full addressCorrections: [email protected]

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

Market pricing for nature is the wrong approach Hank Paulson is correct in sounding the alarm on the threat to our world’s biodiversity (“We need a new asset class of healthy soils and pollinators”, Opinion, September 9). Unfortunately, his claim that “valuing nature as we do traditional goods and services will create incentives to avoid biodiversity destruction, manage climate and preserve lives and livelihoods” is greatly misguided.

Mr Paulson concedes that “market pricing” is difficult when it comes to nature. It is not just difficult. It is inherently impossible since nature and our biosphere are resources that are priceless and therefore cannot be priced and confer invaluable benefits on society and its citizens. Their financialisation would be likely to grant supernumerary gains to a tiny number of already super-endowed individuals, as we have frequently seen with past instances of financialisation of public goods and critical societal resources to the great detriment of the overwhelming mass of citizens and society.

The last thing society and citizens need are innovative financial mechanisms that transform the goods and services provided by nature into asset classes subject to inherent volatility and hence risk. Surely we learnt that expensive lesson with the global financial crisis, or is it already being conveniently overlooked?Professor Louis Brennan Trinity Business School, Trinity College Dublin, Ireland

Climate change risk will challenge even ESG fundsIn his revealing article about environmental, social and governance funds (“How to separate the good from the bad and ugly ESG funds”, FT.com, September 8), Billy Nauman suggests some investors are trying to “immunise their portfolios from climate risk”. Along with nuclear war and the risk of a future, much worse pandemic, climate change is the ultimate systematic risk, so it cannot be diversified away.

Anyone who thinks they can “immunise” their portfolio from climate change risk doesn’t realise the seriousness of what lies ahead.

And if this is just shorthand for “short fossil fuel stocks”, then it’s a bit late.Simon TaylorProfessor of Management Practice (Finance), Judge Business SchoolUniversity of Cambridge, UK

Your editorial “Scots should demand facts on independence” (FT View, September 4) focuses on the public finances of an independent Scotland.

It should be noted that the annual Government Expenditure and Revenue Scotland figures represent Scotland’s fiscal position under current constitutional arrangements.

A significant amount of the tax and spending in GERS (70 per cent of taxation and around 40 per cent revenue) is reserved to Westminster and outside the control of the Scottish government. As the Fraser of Allander Institute has observed, the GERS

statistics “say little about the long-term finances of an independent Scotland”. If anything, these figures demonstrate how the current constitutional arrangements are unsustainable. GERS should prompt change, not celebration of the status quo.

While Scotland’s notional fiscal deficit has increased in 2019-20 it has done so at the same rate as for the UK as a whole.

The coronavirus pandemic is having an impact on public finances globally. The UK’s deficit is forecast to increase to £372bn, with the national debt already topping £2tn. The UK

government will use its fiscal levers to manage that over the longer period, like Scotland could and would as an independent country.

Scotland’s current borrowing powers are extremely limited, far short of the kind needed to effect a response commensurate with the scale of the current challenges — something that will become all too clear when the UK government withdraws its job retention scheme next month.

Scotland has a fundamentally strong and diverse economy. What the current crisis is exposing is notany weakness in the case for full

self-government and control of resources, but rather the pressing need for Scotland to gain the full range of economic levers that other nations take for granted.

It would seem that argument is resonating as never before with the Scottish public, with a recent opinion poll from the Business for Scotland group finding that a clear majority of people believe independence would be beneficial to Scotland’s economy.Kate ForbesCabinet Secretary for Finance, Scottish Government,Edinburgh, UK

Scotland’s constitutional set-up is economically unsustainable

Moscow Notebook

by Henry Foy

SEPTEMBER 10 2020 Section:Features Time: 9/9/2020 - 18:47 User: alistair.hayes Page Name: LEADER USA, Part,Page,Edition: EUR, 18, 1


China’s rising influence in the region is the fact that almost every Muslim-ma-jority country has supported the incar-ceration of as many as 2m Muslims in re-education camps in western China. In public statements and joint letters to the UN, countries including Saudi Ara-bia, Egypt, Kuwait, Iraq and the UAE have all praised the camps and suppres-sion of Islam in the region of Xinjiang as necessary “counterterror and deradi-calisation” efforts that have brought “happiness, fulfilment and security”.

In the US, two successive presidents have been elected on promises to extri-cate the country from Middle Eastern entanglements. In the wake of the shale oil revolution, with America now virtu-ally self-sufficient in energy, the ration-ale for pouring more blood and treasure into the sand looks thin.

Washington’s resistance to playing regional policeman while other coun-tries, particularly China, reap all the benefits has been evident for a while. It was Barack Obama’s administration that first proposed the “pivot to Asia” to refocus American diplomatic and mili-

deteriorate, Beijing’s goal of increasing control of these waterways and reducing America’s ability to cut them off in a con-flict has taken on greater urgency. It is the main reason why China has built a navy that is now bigger, if not more advanced, than that of the US.

Until recently, Beijing had followed a hands-off policy in the Middle East of being a friend to everyone but allies with none. The success of this has been on display as it negotiates a $400bn invest-ment and security pact with Iran while assisting Iran’s enemy Saudi Arabia with its nuclear programme. And it fully sup-ports the Palestinian cause while charming Israel into sharing state of the art technology and leasing key strategic ports to Chinese state enterprises.

But perhaps the most powerful sign of

C ritics of the 2003 US invasion of Iraq have always believed the real motivation wastaking control of the world’s second-largest proven oil

reserves.Even the architects of Operation Iraqi

Freedom were convinced Iraqi oil reve-nues would quickly fund reconstruction of a US client state that would help redraw the contours of the Middle East in America’s favour. But if oil and influ-ence were the prizes, then it seems China, not America, has ultimately won the Iraq war and its aftermath — with-out ever firing a shot.

Today China, the world’s largest importer of crude oil, is Iraq’s biggest trading partner. Only Russia sells more oil to Beijing. In the first half of this year, Iraqi oil shipments to China increased almost 30 per cent from a year earlier and accounted for more than a third of Iraq’s total exports. During a visit to Bei-jing last year, Adel Abdul Mahdi, then Iraq’s prime minister, described Sino-Iraqi relations as poised for a “quantum leap” and his electricity minister wrote “China is our primary option as a strate-gic partner in the long run.”

Meanwhile, Iraqi oil exports to the US

nearly halved in the first half of the year and the Pentagon plans to reduce its remaining troops in Iraq by a third in the coming months.

A similar dynamic is playing out in Afghanistan, as America’s longest war finally draws to a close. Afghan and Pakistani officials tell the Financial Times that Beijing is effectively in con-trol of the peace process and is promis-ing the Taliban lavish energy and infra-structure investment once the US has left for good.

China’s influence is rapidly growing across the Middle East at a time when American commitment is being ques-tioned by regional allies and US politi-cians alike. Beijing is the biggest foreign investor in the region and has sealed strategic partnerships with all Gulf states apart from Bahrain. Most invest-ment has gone to traditional US allies, many of them also eager customers of Chinese military technology.

China’s first ever overseas military base was established in Djibouti three years ago. But Beijing is also investing heavily in commercial ports that could easily be converted to naval use in other strategic locations, including Pakistan’s Gwadar and Oman’s Duqm port on either side of the Gulf of Oman.

Along with the Strait of Malacca between Malaysia and Indonesia’s island of Sumatra, China considers the Strait of Hormuz and the Bab al-Mandab Strait as critical to its economic and military sur-vival since the bulk of its energy imports are shipped through these strategic chokepoints.As Sino-US relations

China digs deep in the

Middle East

Beijing gains in oil and influence as successive American presidents

withdraw

T he pandemic has ended. For Africa at least. Sort of.

The pandemic in ques-tion is not coronavirus, but poliovirus, which causes

crippling paralysis in a minority of chil-dren. On August 25, the World Health Organization announced that wild poliovirus had been eradicated in Africa following its disappearance in Nigeria.

Distracted by Covid-19, few people noticed. That’s a pity. It brings tantalis-ingly close the goal of eradicating polio from earth in what would be only the second elimination of a virus that affects humans in history. The other was smallpox, declared eradicated in 1980.

Wild polio now exists in Afghanistan and Pakistan. In the 1990s, it was para-lysing 75,000 children a year in Africa.

The treadmill struggle against polio holds multiple lessons for a world newly sensitised to the threat of microbes. Among them, the contradictions of development, the key role of public health, the politics of vaccines and the stubbornness of pathogens.

Polio is an ancient disease. Egyptian stele from the 15th century BC depict pharaohs with withered legs. More recent epidemics occurred in Norway in the 1860s. By the 1940s, there were reg-ular outbreaks all over Europe. In 1952 alone, some 21,000 American children were paralysed.

Paradoxically, the virus spread because of better hygiene. As sanitation improved, fewer children were exposed to poliovirus, which is mainly transmit-ted through the so-called faecal-oral route, usually in water. That left them vulnerable. Swimming pools became places of danger. Development often has side effects. It brings humans into closer contact with animals and with each other. Progress allows pathogens to hitch rides aboard aeroplanes.

Polio was all but eradicated in rich countries thanks to vaccines. The first,

The drama of polio eradication has played out in Nigeria, which in 2012 accounted for more than half of world-wide cases. Most were in the north of the country where insecurity made it hard to get to children and where conspiracy theories persuaded some that the vac-cine was a western plot.

In 2003, an outbreak in Nigeria’s north quickly spread to 20 countries, a warning for the coronavirus generation. Nigeria again seemed on the verge of elimination in 2016 when four cases suddenly appeared in the north-eastern state of Borno.

The WHO appointed Musa Audu, who had been successfully snuffing out polio elsewhere in Nigeria, to deliver the final blow. When he arrived in Borno, it was in the grip of a Boko Haram funda-mentalist insurgency. Swaths of the state were under rebel control and there were daily roadside bombs. Many areas were accessible only by helicopter. Some were not accessible at all.

Nigeria’s president Muhammadu Buhari has not always been the most dynamic leader. But on polio, he swung into action. Not only did he instruct the

developed in 1953 by Jonas Salk, was a so-called “killed vaccine” administered through injection. By the late 1950s, some 450m doses had been given. In the US, the incidence of paralytic polio fell from 18 per 100,000 to two. The last domestic case was 1979.

In the late 1950s, Albert Sabin came up with a so-called live attenuated vac-cine. Given orally, the Sabin vaccine is cheap and easy to administer but, in

roughly three cases per million, it can itself cause paralysis. This occurs after it enters the water system where it can mutate and infect children in under-im-munised communities.

Three cases per million is tiny com-pared to the 5,000 cases per million that can result from wild polio. From a public health perspective, it is a no-brainer.

The struggle holds multiple lessons for a

world newly sensitised to the threat of microbes

A s the Athens tourist board seldom mentions, their fair city was not just the cradle but also the mausoleum of democracy. The ancients

defined “rule by the people” with a liter-alism that has mostly not endured: direct votes in mass gatherings, issue-by-issue, eyeball-to-eyeball. When the US founders balked at the D-word (it is not in the constitution) it was because the meaning was still the Greek one. The indirect vote that now governs their republic and much of the world is as far from that as modern architecture is from the Doric order.

That democracy comes in degrees, that less of it can be more: the west rose on these principles. To survive, it might have to heed them again.

No global trend is better documented than the crisis of democracy. It has a case study in US president Donald Trump, who suggests that he might not recognise a defeat in the November elec-tion. To go by the vast trove of data sifted by scholars at Cambridge univer-sity, he is not so unusual. Public qualms about democracy are growing world-wide. An absolute majority of Ameri-cans are dissatisfied with it. In what has become a literary genre, cheering titles include The Road to Unfreedom and How Democracy Ends.

Visions of an autocratic future are plausible. But they sometimes read as though no system exists between democracy as we know it and the sinis-ter opposite. A crisis for the one must spell a breakthrough for the other.

This breathless dualism does not allow for a middle course. It does not allow for a bit less democracy. As it has before, a wider distance between gov-ernments and the governed could improve the quality of the first while keeping the second in ultimate charge.

Count the ways. Longer terms between elections would incentivise far-

In The Wake Up Call, a new book on the pandemic, John Micklethwait and Adrian Wooldridge parse the most suc-cessful virus-fighting nations for clues. It is not big government that works, they conclude, so much as competence and trust. Their treatise might avert a lot of aimless state spending in the future. What the authors skirt, though, is that many of these governments also operate at some remove from their electorates. Singapore, with its “guided democracy”, is the obvious case, but there are subtler ones. Except for brief interludes, Japan has one-party rule. Taiwan has had a comparable model for most of its his-tory. Even Germany has a constitutional limit on referendums and just its third chancellor since 1982.

Any reform in that direction will strike populists as a snob’s charter. But there is no linear relationship between the extent of democracy and the happi-ness of the demos. Nor is it clear that what gave rise to the anti-politics of recent years was insufficient people power. The least trusted big institution in America is Congress, whose lower house, with its two-year terms, is less a

sighted governance and reduce thefrequency with which voters fall out with each other. More power for techno-crats would depoliticise, as far as possi-ble, areas of policy. If that sentiment reeks of hauteur, remember that central banks exert a vast distributional impact, enriching some citizens over others. And still, across the rich world, the cla-mour to democratise monetary policy is

less than deafening. Allowing the tech-nocratic hand on one or two other levers would not set a sudden precedent.

As for curbs on direct democracy, British public life would now be less poi-soned had it had them. The US is not so given to plebiscites at a national level, but they make for misrule in its largest state, California, a place that should be impossible to ruin.

Longer terms between elections would mean

voters fall out with each other less frequently

Opinion

tary might on the Asia-Pacific and coun-ter China’s rise as a regional hegemon. President Donald Trump has acceler-ated that strategy.

But what seems like a compelling case for American retreat from the Middle East is now complicated by China’s rapid advances there. If the US goal is to contain China’s ambitions in Asia and shore up close allies Japan, South Korea and Taiwan, pulling out of the Middle East is the last thing it should do.

Most Asian countries are even more dependent on ship-borne oil than China. Ceding control of the key water-ways around the Arabian Peninsula to Beijing would force all countries in Asia to rethink their strategic alliances and make them far more susceptible to the kind of coercive diplomacy China is using all over the world.

Whoever wins the US presidential election in November will face the uncomfortable reality that competition with and containment of China now runs through the Middle East.

[email protected]

What the campaign to eradicate polio tells us about Covid-19

military to co-operate with health workers, sometimes administering polio vaccine themselves. He also made a show of giving the vaccine to his own grandchild, a display of leadership that encouraged millions of parents to let their children be immunised too.

The last case of wild polio virus in Nigeria was four years ago, but there were 320 cases of “vaccine-derived” polio across Africa last year. These affect under-immunised communities, so fur-ther mass campaigns are needed.

Public health is expensive and frus-trating. Despite its name, it can be hard to explain to the public.

Yet the legacy of such campaigns is lasting. Not only have some 1.8m chil-dren in Africa been saved from paralysis in the past 25 years. The labs, surveil-lance and track-and-trace systems that were built for polio — and Ebola and HIV — have stood the continent in decent stead to tackle coronavirus.

Africa is putting up a strong fight against Covid-19. That is in large part thanks to its public health battles of old.

[email protected]

SCIENCE

AnjanaAhuja

O ut of the ancient cosmic darkness swirled the impossible. That is one way to describe the biggest recorded collision of two

black holes, a cataclysmic event detected in May last year but revealed by scientists only last week.

The distant merger, 17bn light years away, revealed itself through the gravi-tational waves that rippled outwards from this violent union, which hap-pened around 7bn years ago and took just a fraction of a second. The waves — wobbles in the space-time fabric of the universe — were detected by the Ligo (laser interferometer gravitational wave) and Virgo observatories based in the US and Italy respectively. These detectors are designed to pick up gravi-tational ripples induced by the most dramatic events in the universe, such as black holes devouring each other or huge stars exploding.

The event, named GW190521, chal-lenges our understanding of these extreme objects. So-called stellar black holes are the corpses of stars; when mas-sive stars run out of fuel, they collapse in on themselves. In some cases, this con-traction creates a core so dense that nothing, not even light, can escape its gravitational grasp. Our own sun, whose solar mass provides the benchmark for star sizes, is not massive enough to become a black hole in its dotage.

GW190521 captures the moment when a black hole the size of 85suns barged into one the size of 66

suns. These are the biggest black holes that have ever been “observed” collid-ing. The swollen black hole left behind is the size of 142 suns, with the missing solar masses lost as energy.

The thrill of the observation comes wrapped in mystery: the two original black holes should not even exist, according to some. Because of the com-peting forces that play out in dying stars of different masses, it has been long thought theoretically impossible for stellar black holes to form in a narrow mass gap of between about 65 and 120 solar masses. Both participants in this set-up defied that convention.

“We can reconcile the smaller one but even if we tweak the parameters we shouldn’t find one around 85 solar masses,” said Alberto Vecchio, director of the Institute of Gravitational Wave Astronomy at the University of Bir-mingham, UK, and a member of the Ligo team. The professor remembers the observations sparking excitement within an hour of being recorded. Future research will investigate how the universe engineers these “impossible” objects, perhaps through collisions of smaller ones.

Beyond that, the clash of these two light-slurping titans produced a black hole that, at 142 solar masses, is in a class of its own. Stellar black holes, up to a few tens of solar masses, lie at the bijou end of the size spectrum; supermassive black holes, found at the centre of galax-ies and at least as big as 1m suns, lie at the other. Supermassives are thought to form in a completely different way from their puny stellar cousins, perhaps through gas collapse at the heart of gal-axies. GW190521 provides the strongest evidence yet of a so-called intermediate mass black hole, lying in an observ-ational desert stretching between roughly 100 and 100,000 suns.

The allure of black holes, Prof Vecchio thinks, comes from the fact that “they are monster objects but we can compre-hend them on a human scale”. A black hole of 100 solar masses would have a radius of around 200 miles, he explains, about the distance between Londonand Manchester. “Imagine taking a sphere of that radius and packing 100 suns into it.”

Even the sharpest minds struggled with cosmic concepts. Albert Einstein first predicted gravitational waves in 1916 but later doubted his calculations. How gratified he would have been, after his own wobble, to see that the universe wobbles too.

[email protected]

Merger of black holes should

have been impossible

An intriguing collision oflight-slurping titans was

a cataclysmic eventthat defies convention

legislature than a sort of pooledcampaign headquarters. The unelected Supreme Court commands more confi-dence than the elected presidency, and the military, with which most citizens have no contact, outranks both.

This is even truer in the UK. David Cameron, the prime minister that vot-ers defied to leave the EU, held three big referendums in five years. Throw in House of Lords reform and devolution, and the pre-Brexit decades were the most democratic in the nation’s modern history. After all this forced intimacy with voters, the state incurred their con-tempt, not their trust. It follows that a step back need not incite a revolution. In the end, the public’s exasperation with democracy is an implied self-criticism.

How much of a step? The economist Garett Jones calls for “10 per cent less democracy”, but these things defy measurement. For now, it is enough to float the principle. We are not obliged to either defend the status quo or salute the strongmen. If democracy contracts to survive, it would not be the first time.

[email protected]

Democracy works better when there is less of it

AMERICA

JananGanesh

AFRICA

David Pilling

asia

Jamil Anderlini

SEPTEMBER 10 2020 Section:Features Time: 9/9/2020 - 18:03 User: alistair.hayes Page Name: COMMENT USA, Part,Page,Edition: EUR, 19, 1


CROSSWORDNo 16,578 Set by BASILISK

JOTTER PAD

ACROSS 1 Beat everything found in appropriate

article by Garibaldi? (4,3,7)10 When bed’s one place you might get

better (5)11 Study discovered Dog Star orbits in

inert state (9)12 Unexciting date welcomed by anyone

following change of heart (7)13 Prepared food round middle of kitchen

sink (7)14 Drew water from river having gone

outside (5)16 Exile initially ignored mass prejudice (9)19 Swift character posted back to front

takes flight bags (9)20 Coach tour suitable for everyone

brought forward meeting time (5)22 Toxic element in care homes finally

rehabilitated (7)25 Woman penning books such as Fifty

Shades of Grey (7)27 Supply teacher has reduced scourge of

absenteeism? (9)28 Children matter (5)29 Representation of prophet’s decree?

(8,6)DOWN 2 Newsreader barely referred to person

out of the public eye (9) 3 Guard failing to open gate? (5) 4 Romantic poet’s body suffered as winter

rose? (9) 5 22 lives supporting British foundation

(5) 6 Novel litmus test’s first to include a new

catalyst (9) 7 Assume moneylending will succumb

ultimately to pressure (5) 8, 21 Prime gatherer in extremis? (3,4,6) 9, 19 Punish exploit linking sailor with that

woman (3,3,7)15 Alliance replacing university in

alternative course means to create boom? (9)

17 Vulgar experiences captivating the French (9)

18 Underlying insincerity leaving enquiry’s case compromised (9)

19 See 921 See 823 Piercing alert is pitched too high (5)24 Dictator’s ready to hide (5)26 Naked lover staying at home is

sheepish? (5)

Solution 16,577

Tiffany’s flagship store on Fifth Avenue in Manhattan is next door to Trump Tower. Fittingly, the jeweller’s $16.6bn sale to LVMH has become entangled in a trade war. The French luxury group says it cannot close the deal in November. The French government, riled by threatened US tariffs, does not want it to, apparently.

This must suit LVMH boss Bernard Arnault. LVMH’s misgivings over paying the huge premium it agreed before the pandemic have been known for months. Tiffany’s shares have traded at a reasonable discount to the price of $135 in the agreement.

Still, merger contracts are typically bombproof. Few buyers ever wriggle out of them. LVMH has brought a typically inventive and particularly French twist to the problem — relying on the government to meddle in an international takeover.

Mr Arnault is no stranger to knife-edge tactics. Perhaps Tiffany will simply cut its asking price to make the row go away. Equally, LVMH’s tough tactics may provoke Tiffany to pursue a long, expensive legal case. These are a counterpoised American speciality.

Tiffany just filed a suit seeking to enforce the merger agreement. In its complaint, it said LVMH had been trying to prove that Tiffany had suffered a “material adverse effect” — pandemic damage so bad LVMH could legitimately reconsider its bid. These so-called MAC clauses have almost never given buyers an escape hatch.

Tiffany also alleged LVMH was slow-walking through regulatory approvals so the deal would not get done before the agreed date of November 24 2020.

The jeweller is almost certainly no longer worth $135 per share — if it ever was. But the slide in value could have occurred after closing the deal. US courts are rarely convinced the situation is any different when the decline follows the deal’s signing. But the curious reality is that for France, LVMH genuinely is a strategic business — a label ministers were once ridiculed for applying to yoghurt maker Danone.

LVMH/Tiffany: French bleat

and there are plenty of risks. Shifts in the popularity of games will affect audiences and sponsorship revenues. The profitability of team owners may be squeezed by more powerful parts of the industry, notably game publishers and distribution platforms like Twitch. Players also have muscle.

Investors who want to benefit from the growth of the industry should focus on adjacent sectors. Makers of chips and games have outperformed this year. By contrast, shares in Copenhagen-based esport team owner Astralis have nearly halved since its IPO last year.

Guild Esports is an interesting venture that will benefit from David Beckham’s marketing nous. But those looking for returns should treat it as a spectator sport.

£20m and put a £50m price tag on the business. But the debut is drawing attention disproportionate to its size. It shines a spotlight on the rapid rise of esports, accelerated by the pandemic.

The professionalisation of esport teams has attracted wealthy investors, such as former basketball star Michael Jordan in 2018. That chimed with enthusiasts’ talk of parallels between esports teams and NBA franchises.

Guild Esports wants to copy aspects of the NBA franchise model, as well as that of Premier football teams. Sponsorship is likely to be the biggest source of revenue, typically accounting for two-fifths of teams’ revenues. It also expects to make money through tournament winnings, marketing and promotional events.

This is, however, a fledgling sector

data management could be an $84bn market. This Snowflake is not going to drift downwards.

Detractors scoff at the notion that gaming is a sport. Yet boundaries are increasingly blurred. Famous English footballer David Beckham straddles both worlds. He owns a minority stake in London-based Guild Esports, which is building teams to compete publicly in video games such as Fortnite and Fifa soccer. Yesterday, Guild announced plans to list its shares on the London Stock Exchange.

A modest launch is likely to raise just

David Beckham: pitch shift

An unexpected leader has emerged among the unicorns galloping towards public markets. In a field that includes Airbnb and Palantir, cloud data storage platform Snowflake could be the one to set a US tech IPO record this year.

Why the excitement for a lossmaking company with annual sales of less than $265m? Snowflake is targeting a possible $23.7bn valuation — almost double its notional worth earlier this year and larger than both Palantir and Airbnb’s last private valuations. At the top end, Snowflake would trade at about 90 times trailing sales.

Can buying at such multiples ever qualify as value investing? Warren Buffett’s Berkshire Hathaway appears to think so. It has abandoned customary caution around lossmaking companies and IPOs to arrange — along with Salesforce — a private placement of stock worth $250m plus a later purchase of about 4m shares.

Yet even if Berkshire Hathaway’s interest is unusual, it is still prudent. Snowflake sells cloud-based data warehouses. These help users consolidate data from various sources for analysis. Unlike lossmaking gig economy companies such as Uber, which listed last year with slowing growth and rising losses, Snowflake’s finances are moving in the right direction. Losses are ticking down. In the last quarter, revenue was $133m — up 121 per cent from the previous year.

Snowflake’s appeal is not just in its triple-digit sales growth. It is perfectly placed to benefit from the global shift away from on-premises data to the cloud. Snowflake boasts relationships with all three big US cloud vendors: Amazon’s AWS, Microsoft’s Azure and Google Cloud Platform. This means data can be moved across platforms.

An impressive net retention rate of 158 per cent shows customers are expanding their use of Snowflake tools once they sign up. Within three years, research firm IDC estimates, analytics

Snowflake/Buffett: the special one

President Donald Trump has warned that stocks would come “crashing down” and “disintegrate” if he loses his re-election bid in November.

But with the election only two months away, Wall Street is hardly cowed by the prospect of Democrat Joe Biden becoming president. Despite this month’s pullback, the S&P 500 is up 49 per cent from March lows.

The main threats Mr Biden poses to the stock market — increased regulation and higher taxation — would be outweighed by greater stability in policymaking. In place of Mr Trump’s tweet storms that at times have targeted specific companies, Mr Biden would inject some predictability back into US trade and foreign relations.

Among his key proposals, Mr Biden has promised to undo Trump tax cuts that have benefited a not-entirely grateful Wall Street. In practice, this means he would move the top individual tax rate up from 37 per cent to 39.6 per cent, raise the corporate tax rate from 21 per cent to 28 per cent and impose higher capital gains tax on those earning more than $1m.

UBS reckons Mr Biden’s tax proposals could shave about 8 per cent off S&P 500 company earnings. Businesses on steep multiples would be most exposed. These include Faang stocks such as Facebook and Amazon. Healthcare has also soared — drug price curbs have been more threat than reality and coronavirus has energised investors. Johnson & Johnson and Merck are among big businesses in this sector. A Democratic sweep in November would probably set off a wave of short-term selling. Investors should hold their nerve.

If the US economy is to pull itself out of recession, it needs a consistent government response to Covid-19. Mr Biden has clear policies here. That could help bank stocks, via loan growth and modestly higher rates. Longer term, his infrastructure, healthcare and education spending plans could add as much as one full percentage point to real US GDP in 2021 and offset a large part of tax increases, according to UBS economists.

The Biden Trade looks pretty simple: buy large-cap equities as a long-term hold and sell volatility. That said, the

US securities: the Biden Trade

biggest risk for investors is not a victory for either Mr Biden or Mr Trump. Instead it is a nervous market reaction if the outcome of the election is contested. In this scenario, forget equities. Watch gold prices soar.

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

Twitter: @FTLex

Tullow Oil shambles to a funereal beat these days. High debt and persistent operating losses since 2013 have darkened the mood of long-grieving shareholders. Rahul Dhir, the new chief executive, has a mandate to breathe new life into the Africa-focused oil company. His experience as a deal-doer should help him sell assets while cutting costs, securing Tullow’s survival.

But the continuing business may prove to be a zombie: one of a growing legion of corporates stuck in a financial twilight zone following Covid-19. Unable to grow or generate good returns, they will simply tie up capital. Yesterday’s first-half results hinted at the alternative — ignominious collapse. Most of the key

data were already announced. What rattled markets, sending shares down 10 per cent, was buried deep in the statement. Here, Tullow flagged issues over future liquidity, a benchmark of creditworthiness for banks that have lent $1.5bn against its oil reserves. There are doubts that next year’s cash flow will meet targets.

A glance at the capital structure reveals what Mr Dhir faces. Net debt now exceeds trailing ebitdax (a measure of cash earnings before exploration expenses) by 3 times. Next year, repayment of a $300m convertible bond falls due. Tullow should be able to cover that with proceeds from the sale of its Uganda oil assets. Senior bonds worth $600m start coming due in 2022. Bondholders

understandably fear a default. The price of Tullow’s 2025 senior bond on the day fell more than 5 points to about 52 cents on the dollar.

But the bulk of Tullow’s liabilities are loans. Banks are less prone to revolt than bondholders. Defaults and loan write-offs do banker CVs no good. They may be amenable to raising the current debt covenant of 3.5 times net debt to trailing ebitdax to Tullow’s suggested 4.5 times. That would extend Tullow’s life — if you could call it that.

The explorer would then zombify, meeting interest payments but not much else. Tullow could remain on the hook to banks for years. Watch out for other businesses set to share this grim fate — and avoid them.

0 0.5 1.0 1.5 2.0

Its debts are due soon ...Outstanding, as at June 30 2020 ($bn)

Convertible bonds(2021)

Senior notes(2022)

Reserves based lending(2024)

Senior notes(2025)

Source: company

FT graphic Source: S&P Global

... just as output is expected to fall‘000 of barrels daily

Source: S&P Global

020406080

100

2019 20 21 22

Forecast

Tullow profits cover less interestEbitda/interest expense

0

5

10

15

20

2014 15 16 17 18 19 20Forecast

Tullow Oil/zombies: oh, DhirTullow Oil has too much debt. Worse, its interest coverage has fallen in recent years. The oil explorer plans to sell its assets in Uganda. But Tullow’s oil output is forecast to fall over the next few years. It will need to ask for leniency from its bankers, which control the bulk of its outstanding debt.

SEPTEMBER 10 2020 Section:FrontBack Time: 9/9/2020 - 19:01 User: jeremy.wright Page Name: 1BACK, Part,Page,Edition: EUR, 20, 1

Financial Times Europe - 10 09 2020

Documents

Transcript of Financial Times Europe - 10 09 2020