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on course to lead global recovery Military chiefs have urged militants holed up in the
southern city of Marawi, in President Rodrigo
Dutertes home region, to lay down their arms after
a siege that has claimed more than 100 lives. PAGE 3
INTERNATIONAL
London anti-May sentiment bucks trend director, this month, over what he called
the Russia thing. He later told Sergei
Lavrov, Russias foreign minister, that
Mr Comey was a nut job whose dis-
missal had eased pressure on him.
Mr Trump has also faced scrutiny
In the only regional poll so far after Mr Comey claimed the president
the city was the Conservatives had urged him to halt an investigation
into Michael Flynn, the former national
worst performing region security adviser whose conversations
with Russian officials are being looked
at as part of the FBI probe. US media has
HENRY MANCE LONDON
also reported that Mr Trump urged two
When Lindsey Hall pounded the streets top intelligence officials to state there
of Westminster North for the Conserva- was no collusion between his campaign
tives in 2015, she ended up 2,000 votes and Russia.
short of winning the London parliamen- While Mr Trump attended G7 and
tary seat and in need of a hip replace- Nato summits last week, the Russia
ment. It didnt seem fair, she jokes, scandal grew with the revelation that
comparing herself to Tory candidates in the FBI is looking at Jared Kushner, his
south-west England who managed to son-in-law who also met Russian offi-
overturn huge majorities. cials during the transition.
Ms Hall, a councillor and antiques Mr Dubke said in a statement: It has
entrepreneur, is standing in next weeks been my great honour to serve Presi-
UK general election. This time she has dent Trump and this administration.
the advantage that the constituency is a Reince Priebus, the White House chief
designated target seat for the ruling of staff, said Mr Dubke had offered his
Conservatives, ensuring greater adver- resignation before Mr Trump travelled
tising firepower from party HQ. overseas. He added that he would help
London should be fertile territory for with the transition and be a strong
the Conservatives, who are seeking to advocate for the president.
increase their majority after Prime Min- Many Republicans, and privately
ister Theresa May called the snap elec- some of Mr Trumps own aides, say
tion. Of the 30 seats where it finished restructuring his team will have little
closest second to Labour, nine includ- impact unless he changes his own
ing Westminster North are in the capi- behaviour, including using Twitter to
tal. In 1983, 1987 and 1992, the party remark on the Russia probe.
dominated London, winning two-thirds Every White House is ultimately a
of the constituencies. Fightback: December Mr Goldsmith, by then an When the UK votes on June 8, even a For the Tory voters sense that the campaign is reflection of the president. So, you can
But in this election, London has been Prime Minister independent, also lost his seat in parlia- small swing could be sufficient for the not going entirely their way. Annabel hire and fire staff and shift responsibili-
a holdout in the national swing towards Theresa May ment in a by-election to the pro-EU Lib- Conservatives to make notable gains. In referendum Seaman, a long-time Tory voter in Ham- ties around but, ultimately, success is
Mrs May. In the only regional poll so far, campaigns with eral Democrats. 10 of Londons 73 seats, the Conserva- at least, mersmith, west London, says that Mrs still dependent upon a presidents abil-
by YouGov, it was the Conservatives Zac Goldsmith, Pollsters say London is different tives finished second by fewer than Mays so-called dementia tax wobbled ity to offer a very clear road map on
worst performing region: the party had Conservative largely because of its demographics. It 3,000 votes in 2015. London was me a little bit. Caroline Wyatt, a 63- what they want to get done and then
gained just 1 percentage point on 2015, candidate for has a higher than average number of Results in the capital could have different year-old pensioner, says that Mr Corbyn execute that plan in a very disciplined
and that was before the prime ministers Richmond Park young people, ethnic minorities and national implications for the opposition has definitely upped his game in the way, said Kevin Madden, a Republican
U-turn over government plans for social in south-west graduates, and a lower than average parties. While the Conservatives have because the election. Although I dont agree with his who was spokesman for Mitt Romney
care funding. London, on number of white, socially conservative virtually no chance of beating top people were policies, I get the impression he cares. during the 2012 presidential race.
London has lost its English- Monday. Mr voters. Unlike in other parts of the coun- Labour figures such as Jeremy Corbyn, Age has become a sharp dividing line, Mr Trump yesterday offered a
ness . . . Because of that its so far sepa- Goldsmith lost try, there are relatively few UK Inde- the partys leader, they could topple different; as in the Brexit referendum. Although reminder of why some of his staff are
rated from the rest of the country, says the seat to the pendence party voters who can bolster well-regarded Labour moderates, the people Mrs Mays policies on pensions and worried about his use of Twitter, partic-
Constantine Anton, an architect who pro-EU Liberal Conservative support. The Conservatives difficulties in Lon- increasing social care payments would ularly after the justice department
intends to vote Labour. Democrats in a However, there is little evidence that a don may be partly because their propos- werent hit elderly people, she retains the sup- named Robert Mueller, a former FBI
Londons exceptionalism has already by-election cosmopolitan city makes people more als on business rates and school funding different port of many older voters. The trouble head, to lead an independent investiga-
been seen at the ballot box. The city Leon Neal/AFP/Getty Images leftwing. The apparent London effect would adversely affect the capital. Ms with Labour is that people have lost tion into the Russia issue.
voted 60/40 to stay in the EU at a refer- at the EU referendum turned out to not Hall calls rates reform a bit of an own because faith in them, says Alan Barnett, a pro- Russian officials must be laughing at
endum last year, casting more Remain really exist once you [take into consid- goal politically. they were in Brexit pensioner in Finchley. the US & how a lame excuse for why the
votes than Scotland and Northern Ire- eration] things like age, education and She is hoping to capitalise on Labours Carl, 24, who works in sales, says he Dems lost the election has taken over
land combined. In elections for the city ethnicity, says Anthony Wells, director plans for tax rises on high earners. Yet in London normally votes Tory, but has been the Fake News, Mr Trump tweeted. He
assembly, the Conservatives share of of research at YouGov. For the referen- 2015 Ed Miliband, then Labour leader, unimpressed by the partys Facebook later retweeted a story from Fox News,
the vote has been declining since 2008. dum at least, London was different proposed a mansion tax that would ads against Mr Corbyn. Its probably which cited a source saying Mr Kushner
Labour recaptured the mayoralty last because the people were different; the affect wealthy Londoners, and still man- the only election where Ive found it had not suggested creating a secret com-
May after eight years, with Sadiq Khan people werent different because they aged to improve Labours vote share in very hard to decide who to vote for. munications channel with Russia.
beating Conservative Zac Goldsmith. In were in London. the city. FT Big Read page 7 Additional reporting by John Murray Brown
MAKE A SMART INVESTMENT Obituary Manuel Noriega, who has died aged 83,
was the de facto ruler of Panama
through the 1980s until US president
born in the working-class El Chorrillo
district of Panama City on February 11
1934 (although he often claimed to be
chief of staff of the Panama defence
forces, in charge of the country with the
strong backing of Washington.
Subscribe to the FT today at FT.com/subscription Dictator and George HW Bush launched a military
invasion to depose him in 1989.
four years younger) to an accountant
father who had emigrated from Colom-
Throughout the 1970s and 1980s, the
CIA was paying Noriega to provide
FRIDAY 31 MARCH 2017 WORLD BUSINESS NEWSPAPER UK 2.70 Channel Islands 3.00; Republic of Ireland 3.00
double agent Noriega had been an asset of the
Central Intelligence Agency for at least
two decades but his links with Colom-
bia and his housekeeper. It was in the
same district that he was to build his
popular base, maintain his military
information on Fidel Castro and on
leftwing militant groups in Central
America. But all the time the general
who alienated
Trump vs the Valley A Five Star plan? Dear Don...
Tech titans need to minimise Italys populists are trying to woo Mays first stab at the break-up
political risk GILLIAN TETT, PAGE 13 the poor BIG READ, PAGE 11 letter ROBERT SHRIMSLEY, PAGE 12
and his persecution of opponents, against US troops. tro information on the US military and
dealmaking, as US companies ride a Trump-fuelled
equity market rally to hunt for bargains across the
HOW DRIVERLESS
OF THE TECHNOLOGY IS
Atlantic. PAGE 15; CHINA CURBS HIT DEALS, PAGE 17
US backers
A report on how the health service can survive
ROAD
more austerity has said patients will wait longer for
non-urgent operations and for A&E treatment while AMERICAN WAY OF LIFE Censors and sensitivity
by Brexit surge
some surgical procedures will be scrapped. PAGE 4
prompted Mr Bush to act, bringing him Of mixed Spanish, Amerindian and playingbothsidesoffagainsteachother.
i Emerging nations in record debt sales Warning: this article may be
FT WEEKEND MAGAZINE
FEBRUARY 4 2017
can ally a US-trained military dictator in a country dominated by the rabiblan- leaders of the democratic opposition
Setting up a digital customs system CDS, indicating it would be delivered on
has been at the heart of Whitehalls time. But last month, it wrote to the i HSBC woos transgender customers
Brexit planning because of the fivefold committee saying the programme had The bank has unveiled a range of gender-neutral
RALPH ATKINS ZURICH it followed a strategy offull client tax
increase in declarations expected at been relegated to amber/red, which DUNCAN
titles such asROBINSON BRUSSELS
Mx, in addition to Mr, Mrs, Misscompliance
or but was still trying to
British ports when the UK leaves the EU. means there are major risks or issues Ms, in a move to embrace diversity and cater togather the information about the probes.
FINANCIAL TIMES
About 53 per cent of British imports apparent in a number ofkey areas. Credit
needs Suisse hascustomers.
of transgender been targeted by
PAGE 20 HM Revenue & Customs said it had
come from the EU, and do not require HMRC said last night: [CDS] is on sweeping tax investigations in the UK, launched a criminal investigation into
checks because they arrive through the track to be delivered by January 2019, France and the Netherlands, setting suspected tax evasion and money laun-
single market and customs union. But and it will be able to support frictionless back Switzerlands attempts to clean up dering by a global financial institution
Datawatch
seen by Washington as an ideal buffer to cos, or whitetails, the economic elite of with baseball bats and iron bars in 1989,
Theresa May announced in January that international trade once the UK leaves its image as a tax haven. and certain ofits employees. The UK
Brexit would include departure from
both trading blocs. HMRC handles 60m
declarations a year but, once outside the
customs union, the number is expected
to hit 300m.
The revelations about the system,
the EU . . . Internal ratings are designed
to make sure that each project gets the
focus and resource it requires for suc-
cessful delivery.
HMRCs letters to the select commit-
tee, which will be published today, pro- AFP
Terror attacks inwith
co-operating
were contacted
Highlighted
western
attack byOthers
Europe after
authorities
offices in London, Paris and Amsterdam
Recent
330 Hudson Street, Presidents Day, Good Friday, Memorial Day, Labor
while Australias revenue department and Nice, and the while French officials said their
probe;
likely to throw a sharper spotlight on change, but some MPs believe it was sels over five or six other business written in Brussels bourg thought to be more likely Norway Brussels suicide
said it was investigating a Swiss
Nice bank. investigation had revealed several
Manuel Noriega keep Castro-style communism from mainly Spanish ancestry. pressure grew in the US for action.
whether Whitehall can implement a caused by Mrs Mays unexpected deci- cities in its decision to set up an will be reinsured back to the homes for the industry. But Paris bombings have
host of regulatory regimes in areas sion to leave the EU customs union. EU base to help deal with the syndicates at its City of London Mr Nelson said the city won on The inquiries threaten to undermine thousand bank accounts opened in
bucked the trend
ranging from customs and immigration Timetable & Great Repeal Bill page 2 expected loss of passporting headquarters, pictured above. its transport links, talent pool efforts by the countrys banking sector Switzerland and not declared to French
of generally low
to agriculture and fisheries by the Scheme to import EU laws page 3 rights after Brexit. The Belgian capital had not and extremely good regula- to overhaul business models and ensure tax authorities.
fatalities from
time Britain leaves the EU. Editorial Comment & Notebook page 12 John Nelson, chairman of the been seen as the first choice for tory reputation. customers meet international tax The Swiss attorney-generals office
Sources: Janes Terrorism and Insurgency Centre terror incidents in
requirements following a US-led clamp- western Europesaid it was astonished at the way this
Problems with CDS and other projects Philip Stephens & Chris Giles page 13 centuries-old insurance mar- Londons specialist insurance Lex page 14
New York, NY 10013 essential to Brexit could force London to JPMorgan eye options page 18 ket, said he expected other groups after the UK leaves the Insurers set to follow page 18
billions of dollars in fines.
1934-2017
and a 37,000 fine in the first case of
Shutdown risk as border according to the FCA. The regulator said in that it shows the FCA sees these mes-
with Spain handed veto over Gibraltar
regulators cracking down on commu- 390_Cover_PRESS.indd 1 19/01/2017 13:57
wall bid goes over the top nications over Facebooks popular Mr Niehaus had turned over his device saging apps as the same as everything
chat app. to his employer voluntarily. else.
apple face) because of his acne scars, schoolteacher. The boy hoped to marine stationed in Panama City. Just
avert a US government shutdown after The fine by the Financial Conduct confidential information on the messag- included the identity and details of a
April 28 have resisted Donald Trumps Authority highlights the increasing ing system on a number of occasions client and information about a rival of ALEX BARKER BRUSSELS ambitious trade and airline access deals. mise. If Britain wants to prolong its
attempt to tack funds to pay for a wall problem new media pose for companies last year to impress people. Jefferies. In one instance the banker GEORGE PARKER LONDON Gibraltar yesterday hit back at the status within the single market after
on the US-Mexico border on to that need to monitor and archive their Several banks have banned the use of boasted how he might be able to pay off STEFAN WAGSTYL BERLIN clause, saying the territory had shame- Brexit, the guidelines state it would
stopgap spending plans. They fear staffs communication. new media from work-issued devices, his mortgage if a deal was successful. The EU yesterday took a tough opening fully been singled out for unfavourable require existing regulatory, budgetary,
that his planned $33bn increase in Several large investment banks have but the situation has become trickier as Mr Niehaus was suspended from Jef- stance in Brexit negotiations, rejecting treatment by the council at the behest of supervisory and enforcement instru-
uscirculation@ft.com, www.ft.com/subsusa
defence and border spending could
force a federal shutdown for the first
time since 2013, as Democrats refuse
banned employees from sending client
information over messaging services
including WhatsApp, which uses an
banks move towards a bring your own
device policy. Goldman Sachs has
clamped down on its staffs phone bills
feries and resigned before the comple-
tion of a disciplinary process.
Jefferies declined to comment while
Living wage rise to pile
pressure on care services
postage paid at New York, NY and at additional
Britains plea for early trade talks and
explicitly giving Spain a veto over any
arrangements that apply to Gibraltar.
Spain. Madrid defended the draft
clause, pointing out that it only reflected
the traditional Spanish position.
ments and structures to apply.
Mr Tusk wants talks on future trade
to begin only once sufficient progress
also presided over one of the worlds become a doctor but, lacking resources, four days later, 27,000 American troops
to accept the proposals. encryption system that cannot be as iPhone-loving staff spurn their work- Facebook did not respond to a request Senior EU diplomats noted that has been made on Britains exit bill and
US budget Q&A and accessed without permission from the issued BlackBerrys. for comment. About 2.3m people will benefit from European Council president Donald Mr Tusks text left room for negotiators citizen rights, which Whitehall officials
Trump attack over health bill i PAGE 8 user. Deutsche Bank last year banned Bankers at two institutions said staff Additional reporting by Chloe Cornish todays increase in the national living Tusks first draft of the guidelines, to work with in coming months. Prime believe means simultaneous talks are
WhatsApp from work-issued Black- are typically trained in how to use new Lombard page 20 wage to 7.50 per hour. But the rise which are an important milestone on minister Theresa Mays allies insisted possible if certain conditions are met.
most vital waterways, the Panama ended up as a cadet at the Peruvian mili- invaded Panama by land and air in what
www.ft.com/subscribenow new living wage and the increase is The decision to add the clause giving British officials admitted that the EUs after Brexit with a trade deal.
STOCK MARKETS CURRENCIES INTEREST RATES
Tel: 0800 298 4708 expected to cost councils care services Spain the right to veto any EU-UK trade insistence on a continuing role for the Reports & analysis page 3
Mar 30 prev %chg Mar 30 prev Mar 30 prev price yield chg
Tel: +1 917 551 5040 to F.T. Publications Inc., PO Box 469, Newburgh, NY
360m in the coming financial year. deals covering Gibraltar could make the European Court of Justice in any transi- Jonathan Powell, Tim Harford &
For the latest news go to S&P 500 2365.93 2361.13 0.20 $ per 1.074 1.075 per $ 0.932 0.930 US Gov 10 yr 98.87 2.38 0.00
Analysis i PAGE 4 300-year territorial dispute between tion deal could be problematic. Man in the News: David Davis page 11
www.ft.com Nasdaq Composite 5902.74 5897.55 0.09 $ per 1.249 1.241 per $ 0.801 0.806 UK Gov 10 yr 100.46 1.21 -0.03
Madrid and London an obstacle to Brussels sees little room for compro- Henry Mance page 12
Dow Jones Ind 20703.38 20659.32 0.21 per 0.859 0.866 per 1.164 1.155 Ger Gov 10 yr 98.68 0.39 -0.01
THE FINANCIAL TIMES LTD 2017 FTSEurofirst 300 1500.72 1493.75 0.47 per $ 111.295 111.035 per 119.476 119.363 Jpn Gov 10 yr 100.45 0.06 0.00
No: 39,435 Euro Stoxx 50 3481.67 3475.27 0.18 per 139.035 137.822 index 76.705 76.951 US Gov 30 yr 100.14 2.99 0.01
Printed in London, Liverpool, Glasgow, Dublin, FTSE 100 7369.52 7373.72 -0.06 index 89.046 89.372 $ index 104.636 103.930 Ger Gov 2 yr 102.58 -0.75 0.00 Subscribe In print and online World Markets
Canal, although at the time the US con- tary academy in Lima. After joining Mr Bush dubbed Operation Just Cause.
Frankfurt, Brussels, Milan, Madrid, New York, FTSE All-Share 4011.01 4011.80 -0.02 SFr per 1.069 1.072 SFr per 1.244 1.238 price prev chg
S&P 500
Nasdaq Composite
Dow Jones Ind
Mar 31
2367.10
5918.69
prev %chg
CURRENCIES
0.932 US Gov 10 yr
0.801 UK Gov 10 yr
1.164 Ger Gov 10 yr
price
98.63
100.35
99.27
yield
2.41
1.22
0.33
chg
-0.01
0.02
-0.01
FTSEurofirst 300 1503.03 1500.72 0.15 per $ 111.430 111.295 per 119.180 119.476 Jpn Gov 10 yr 100.36 0.07 0.00
No: 39,436
trolled the canals traffic and security. Panamas National Guard in 1967, he Surrendering on January 3 1990 after
Frankfurt, Brussels, Milan, Madrid, New York, FTSE All-Share 3990.00 4011.01 -0.52 SFr per 1.071 1.069 SFr per 1.252 1.244 price prev chg
Chicago, San Francisco, Washington DC, Orlando, CAC 40 5122.51 5089.64 0.65 COMMODITIES Fed Funds Eff 0.66 0.66 0.00
Tokyo, Hong Kong, Singapore, Seoul, Dubai Xetra Dax 12312.87 12256.43 0.46 Mar 31 prev %chg US 3m Bills 0.78 0.78 0.00
Nikkei 18909.26 19063.22 -0.81 Oil WTI $ 50.46 50.35 0.22 Euro Libor 3m -0.36 -0.36 0.00
Hang Seng 24111.59 24301.09 -0.78 Oil Brent $ 53.35 53.13 0.41 UK 3m 0.34 0.34 0.00
Fax: +44 20 7873 5938, Copyright The Financial Times Limited 2017. All
FTSE All World $ 297.38 298.11 -0.24 Gold $ 1244.85 1248.80 -0.32 Prices are latest for edition Data provided by Morningstar
letters.editor@ft.com rights reserved. Reproduction of the contents of this But his populist and anti-American was sent for training at the School of the days of bombardment, when US
Executive appointments newspaper in any manner is not permitted without rhetoric grew louder; he once whirled a Americas in Fort Benning, Georgia, troops blasted deafening rock music
www.exec-appointments.com the publishers prior consent. Financial Times and
FT are registered trade marks of The Financial
machete around his head and declared alma mater to some of Latin Americas from giant speakers, Noriega was flown
Published by Times Limited. Panama to be in a state of war with the most ruthless military dictators. to Miami and tried on charges of drug
F.T. Publications Inc. 330 Hudson St, New York, US. That piece of bravado, in front of US Noriegas rise began when Omar Torr- trafficking, racketeering and money
NY 10013, USA; The Financial Times and its journalism are subject to network television cameras, marked ijos, Panamas military ruler, took a lik- laundering.
Tel: +1 917-551-5000; a self-regulation regime under the FT Editorial Code
Editor: Lionel Barber of Practice: www.ft.com/editorialcode the start of his downfall. ing to his ruthless style and appointed In 1992 he was jailed for 40 years,
Local media reported that his death, him head of the countrys dreaded G-2 later reduced to 30. The US extradited
Printed by Reprints are available of any FT article with your announced yesterday by Juan Carlos military intelligence service. When Tor- him in 2010 to France but he was soon
Blue Island Newspaper Printing, Harvey, IL company logo or contact details inserted if required
Comprint Printing, Laurel, MD (minimum order 100 copies). One-off copyright Varela, Panamas president, was caused rijos died in an air crash in 1981, there dispatched to Panama to start a 20-year
Evergreen Printing Company, Bellmawr, NJ licences for reproduction of FT articles are also by complications following surgery to were rumours both of US-orchestrated sentence handed down in absentia.
Southwest Offset Printing, San Jose, CA available. For both services phone +44 20 7873 4816, remove a brain tumour. sabotage and of involvement by Nori- Noriega leaves his wife Felicidad and
Sun Publication Inc, Lakeland, FL or alternatively, email syndication@ft.com
Manuel Antonio Noriega Moreno was ega. Whatever the case, Noriega became three daughters. Phil Davidson
Wednesday 31 May 2017 FINANCIAL TIMES 3
INTERNATIONAL
INTERNATIONAL
US elite for
in other EU states to protect rights they
Trump have under European law.
Yves Bot, advocate-general, said
using the non-EU nationals had the right to live in
Ideas challenge
Kremlin enters economists into beauty contest to find answers to anaemic growth
KATHRIN HILLE MOSCOW an economist and former government even becoming a security concern, with als that steer clear of politics. But the trust by helping the country through the tank backed by the finance ministry,
official. an economic security strategy approved groups calls for a partial rollback of the oil price shock and western sanctions. says: Russia is one of the five countries
Business leaders and government offi-
Russias challenges are well known. It this month citing slow growth, budget flexible exchange rate system, a looser Prime Minister Dmitry Medvedev, with the highest level of social security
cials from Russia and abroad are likely
is over-dependent on oil and gas imbalances and widening income dis- monetary policy and subsidised corpo- meanwhile, has submitted a policy ag- contributions for employers in the
to get an unexpected exposure to raw
exports; it is failing to secure enough parities as security risks. rate loans call into question the key poli- enda that analysts call the most realistic world. He points to Germanys success
political campaigning at the countrys
investment to modernise its ageing Mr Putins advisers are showing vary- cies of the central bank, whose governor and flexible but also the least ambitious in making exporters more competitive
largest annual economic conference in
infrastructure; and productivity is ing degrees of ambition in their propos- Elvira Nabiullina has earned Mr Putins of the three, since it largely entails min- through labour market and social secu-
St Petersburg tomorrow.
struggling to keep up with wage growth als. Although Mr Putin asked for policy or tweaks in various sectors. Its one big rity reforms. But some experts caution
Russias ailing economy is at the centre driven by a shrinking labour force. strategies and each politician is lobby- reform is a proposal to cut employers that the plan may fail to improve pro-
of a beauty contest arranged by Presi- But the debate over meeting these ing for their respective plan, Kremlin Russia's unit labour costs social security contributions and raise ductivity unless Moscow also makes the
dent Vladimir Putin, who has ordered challenges has gained fresh urgency as officials have said the president might rise sharply value added tax, aimed at making man- labour market more flexible.
advisers to submit competing plans for a Mr Putin has failed to deliver on prom- cherry-pick individual measures. Indices rebased ufacturers more competitive and for- Mr Putin is keeping his options open
strategy to pep up growth. ises made at the start of his current term Alexei Kudrin, one of Mr Putins most 300 malising parts of the grey economy. and had aides present their rival plans
Russia emerged from a two-year to create millions of high-end jobs, im- senior economic advisers, argues that Total But Mr Titov warns a VAT rise would privately yesterday. But Mr Kudrin and
recession late last year but growth prove education and health services and modernising the bureaucracy, reform- Agriculture strangle badly needed consumer dem- Mr Titov have been sparring publicly.
Mining 250
remains anaemic far below the 3 per steeply raise real wages. As a result of ing the courts, rolling back the states and, while Mr Kudrin fears that cutting Mr Kudrin wrote last week that his com-
Manufacturing
cent the Kremlin would like and the the latest recession, triggered in 2014 by role in the economy, and radically over- Transport and employers social security contributions petitors were behaving like medieval
exchanges over rival plans are getting the oil price crash and western sanc- hauling education and the labour mar- 200 will complicate pension system reform. alchemists [offering] to instantly turn
communication
increasingly heated as Mr Putin seeks tions, real incomes have fallen sharply. ket are indispensable. His strategy Construction The government has deterred public heaps of lead into piles of gold.
the policies to crown what is expected to The government says gross domestic would entail far-reaching changes to the Finance 150 discussion of its plan until after the elec- Mr Titov hit back. Maybe some-
be the formality of a comfortable elec- product will increase by 2 per cent this institutions of governance, leading tion but the cabinet appears to be mov- where, some day, when the conditions
tion victory next March. year, but only 1.5 per cent annually in many to think it is too political for Mr ing. Theyre ready to push the button are right, the institutions will
In the autumn, when the president the following years. The World Bank Putin to embrace in its entirety. 100 as soon as the election is over, said an improve, he said of Mr Kudrins advice.
officially decides to run, he will use expects only 1.3 per cent growth this The Stolypin Club, a group headed by 2007 09 11 13 16 economist briefed on the issue. But here and now, everyone will just
these materials for his campaign pro- year and 1.4 per cent in 2018 and 2019. Boris Titov, ombudsman for entrepre- Sources: OECD; Rosstat; Haver Analytics; Vladimir Nazarov, director of the keep on stealing and taking the riches
World Bank staff estimates
gramme, says Yevgeny Gontmakher, The Kremlin says the dim outlook is neurial rights, has put forward propos- Finance Research Institute, a think- abroad.
Wednesday 31 May 2017 FINANCIAL TIMES 5
6 FINANCIAL TIMES Wednesday 31 May 2017
ARTS
Giselle
lights up Donizetti
American Ballet Theatre, New York
aaaae
Apollinaire Scherr
of society become pawns of the Devil. Kristallnacht replete with the sound of
OPERA It was a gamble when English breaking glass or the final image of
National Opera in 2011 invited Gilliam Marguerite as a victim of the Holocaust
La Damnation de Faust to make his operatic debut. As the brief are too concrete, however, for Berliozs
Staatsoper im Schiller Theater, Berlin but heated shower of boos for the ravishing, at times mystic score.
aaaae directors team revealed on opening Gilliams filmic approach is most suc-
night, bringing his darkly humorous cessful when the music becomes a
Rebecca Schmid take on Faust to the German capital is kind of underscoring for the action, as
also a bold move. in Fausts dream, which takes place
Second world war references such as the At his best, Gilliam synthesises his not among gnomes and sylphs but at a
brandishing of swastikas have become a narrative with Berliozs music into a Nazi ball.
clich on Germanys opera stages. Yet commentary of spiritual dimensions. In the title role, Charles Castronovo is
Terry Gilliam does not spare the viewer Religious choruses take on new meaning a gripping presence, riding the orchestra
any details in his Berlin production of when sung by SS officers, as in Auer- with resonant, refined tone. Florian Boe-
Berliozs La Damnation de Faust at the bachs tavern, and Fausts invocations of sch is a sly, indomitable Mephistopheles,
Staatsoper im Schiller Theater, from nature against Caspar David Friedrich- Magdalena Koen a sultry but vulnera-
Aryan acrobats in blond wigs to a pile of inspired landscapes (sets: Hildegard ble Marguerite. Simon Rattle leads the
gassed bodies from which Marguerites Bechtler) create a fresh, specifically Staatskapelle Berlin in an elegant per-
soul rises to heaven. German context for the title characters formance, from rich strings to chiselled
The film-maker and former Monty conflict. Torn between the peace of soli- woodwind solos and homogeneous
Python member strikes an unusual tude and the thirst for human progress, brass. If the house choruses do not rise to
blend of sardonic caricature and historic Faust enters a pact with Mephistopheles the same standards in phrasing, they are
realism, casting Berliozs lgende drama- through which he unwittingly joins the imaginatively set into action by Gilliam.
tique as an allegorical tale of German Nazi party.
history in which not just Faust but all Tableaux such as a re-creation of To June 11, staatsoper-berlin.de
Wednesday 31 May 2017 FINANCIAL TIMES 7
Leaving the EU was always going to be complicated. But as this exclusive FT research shows, few people
fully appreciate just how complex a task it will be. At least 759 different agreements, with 168 countries,
have to be renegotiated just for Britain to stand still, writes Paul McClean
295 202
Whitehall official. barely aware of Brexit implications. Britain not only needs external agree-
It poses a formidable and little-under- When asked by the FT about a specific ments, but the national regulators to
stood challenge for Britains prime min- customs agreement, one sanguine 69 65 49 45 34 negotiate and manage them. If Brexit
ister after the June 8 election. While Indian diplomat first denied it existed, talks involve a clean separation from EU
Brexit is often cast as an affair between then said it would not matter anyway: regulatory agencies, for example, that
Brussels and London, in practice Brit- Im sure people have forgotten it. requires regenerating a UK capacity to
ains exit will open more than 750 sepa- The logistics are terrifying, even just safeguard nuclear material, currently
rate time-pressured mini-negotiations to go through these commitments and handled by Euratom, or certify and
worldwide, according to Financial treaties and scope them out, says maintain airline parts or pilots licences,
Times research. And there are no obvi- all at potentially breakneck speed.
ous shortcuts: even a basic transition The simple: Here the US poses one of the biggest
after 2019 requires not just EU-UK Horizontal aviation agreements Negotiations will need to take place with more than 160 countries technical and political challenges. Some
approval, but the deal-by-deal authori- treaties, such as the EU-Euratom
sation of every third country involved.
A 2002 European court ruling forced Arrangements by type and region nuclear accord, require Congressional
Britain to revise its bilateral aviation
The nearest precedent you can think agreements with third countries such as 0 20 40 60 80 approval usually a delicate and time-
of is a cessation of a country you are New Zealand to ensure they treated all consuming process. Meanwhile other
almost starting from scratch, says EU airlines equally on issues such Americas arrangements, such as the EU-US Open
Andrew Hood, a former UK govern- as ownership
Trade Europe
Skies accord for airlines, were agreed
Africa
ment lawyer now at Dechert. It will be a rules. It affects
Asia when the forces of liberalisation were at
very difficult, iterative process. around 40 UK their peak. The political mood has hard-
deals, but the Oceania
Britain finds itself at the diplomatic process is
ened considerably since then.
starting line, with the status quo straightforward. Regulatory Americas John Byerly, the former US lead avia-
upended and all sides reassessing their co-operation Europe tion negotiator who secured the Open
interests. Africa Skies deal, says talented lawyers could
To Brexiters this is a liberation that Asia work it out easily if Washington and
allows Britain to negotiate better, more Hosuk Lee-Makiyama, a former trade Oceania London want to maintain current
ambitious deals with trading partners, official for Sweden and the EU now at terms. But there can be slips between
shorn of the encumbrance of Brussels the European Centre for International Fisheries Americas lip and chalice. Im hopeful but lets see.
dogma and politics. At worst, they say, Political Economy. Do you want revi- Europe Britains exit means it will lose The timing is tight. The US needs to
existing arrangements would be contin- sions? Do they? Do you go there? How Africa fishing access rights but has know the UKs arrangements with the
ued through drafting tweaks replacing many visits to Chile will this take? Thats Asia freedom to renegotiate its own.
EU with UK; at best they would be a massive logistical operation in itself. Oceania Opens opportunities with Norway
The ridiculous:
improved. Boris Johnson, foreign secre- There will be a lot of countries with a
tary, said nations were already queue- beef with the EU or the UK and will see Transport Americas We need to talk about swordfish
Europe The agreement with Chile to preserve
ing up to do deals. this as a golden opportunity to bring up Africa swordfish in the southeastern Pacific
Even if it were this simple, critics still a nuisance issue. They might not get Asia came after a dispute in the early 2000s
fear it will open a bureaucratic vortex, anything, but they have to try, he adds. Oceania Existing EU customs deals with that banned EU vessels from landing any
sapping energy and resources. Each There will probably be an accident in Turkey and Switzerland will be of the fish, caught in international waters,
agreement must be reviewed, the coun- areas you cannot predict. Customs Americas hard for Britain to replicate in Chilean ports. Both parties exchange
try approached, the decision makers Europe data on fish stocks, and agree to
found, meetings arranged, trips made, Three-dimensional race Africa co-operate on marine research to
preserve swordfish numbers.
negotiations started and completed Most prominent and economically Asia
all against a ticking clock and the back- significant are the trade deals. Liam Oceania
drop of Brexit, with the legal and practi- Fox, the UK trade secretary, has prom-
cal constraints that brings. Most incon- ised zero disruption by securing tran- Nuclear Americas
venient of all, many countries want to sition agreements to continue old trad- Europe
Africa A US-UK nuclear deal is
know the outcome of EU-UK talks ing terms post-Brexit. Britain will in
Asia essential for the flow of
before making their own commitments. effect repurpose its EU inheritance, re- Oceania EU before it can commit, and that may
We are talking about an enormous activating the existing free-trade deals, fuel and spare parts for not be clear until late 2018.
reactors. It would need
number of complex acts that we rely on Mr Fox says. It is hardly a picture of Agriculture Americas Congressional approval
I dont think there are many prece-
today, says Lord Hannay, Britains splendid isolation, he told parliament Europe dents for doing so many agreements so
former EU ambassador. The challenge this year. Africa quickly. Airlines load schedules months
of replacing them falls in the same cate- For the most part there is a shared Asia in advance, says Mr Byerly. It is not as
gory as Alice in Wonderland running interest in continuing arrangements, Oceania if you can wait until March 2019 to see
furiously to stand in the same spot. since many nations will not want to lose what the regime will be. You probably
preferential access terms to the UK. 0 20 40 60 80 need clarity by the early summer or
Housekeeping measures Some bigger economies see Brexit as a spring of 2018.
Source: FT research Excludes UN and WTO deals
At its most granular level, the sheer window of opportunity, in the words of It puts tremendous strain on White-
administrative scale of the third coun- one ambassador to the EU. Mr Fox has hall. In the months after the Brexit vote,
try question is striking. Through analy- started preliminary discussions with a Britain had just three people dedicated
sis of the EU treaty database, the FT dozen-plus countries that want to fur- Trading places mean 700 front-line negotiators. but most were providing support for to negotiating aviation agreements. The
found 759 separate EU bilateral agree- ther liberalise their existing arrange- Too many deals, Whitehalls Trade Policy Group, which the European Commission. Supporting FT estimates they will need to renegoti-
ments with potential relevance to Brit- ments; South Korea, Switzerland and will lead the negotiations, employs 300 the EU as it negotiates is very different ate 17 existing EU agreements with third
Norway fall into this category. too few negotiators people but very few have experience of to striking deals yourself. countries, as well as around 40 UK bilat-
The missing Wed like the best possible terms for hammering out trade deals. The IFG says Whitehall should first eral deals that include EU clauses. This
Absent from the FTs calculations
our fish. There is a complex web of tariff The task of negotiating new free-trade Despite the creation of a new trade focus on building experience through may need to be done in the space of
are agreements that the UK will quotas and red tape, and wed like to deals and maintaining existing ones will department, the civil service and a series of smaller deals that are easier a few months, once the EU-UK terms
not seek to replace. Among them reduce that, says Oda Helen Sletnes, require a huge amount of money and ministers are not even close to being to achieve to provide vital real-world are clear and Britain decides how
are treaties with Canada Norways ambassador to the EU. But in a manpower from Whitehall. ready to negotiate, let alone implement, experience for the bigger deals ahead. much of its aviation regulation will be
promoting mutual nod to the difficulty of negotiating this The UK Trade Policy Observatory, an new global trading relationships, says But it remains concerned that the UK repatriated.
understanding of the while Brexit terms are still uncertain, independent think-tank, says Britain Jill Rutter at the Institute for lacks deal makers. Experience is the For Mr Chizhov, the potential for
languages, cultures and she added that fisheries discussions will in essence be taking on the same Government, a think-tank. The civil major gap in the UKs capability, says bureaucratic overload has echoes of
institutions of the EU and
environmental deals with
would be complicated by three-way trade policy task as [the EUs service has begun a programme of Ms Rutter. While the Trade Policy another time and place Soviet Russia.
the US to cover energy discussions between EU-Norway-UK. department for] trade. Given the intense training for its negotiators to Group does house a core of officials Brexit means Brexit is a very interest-
efficiency labelling for In other words, this is not a straightfor- nature of Brexit negotiations high make up for this lack of experience. who have worked on trade policy ing expression, says the Russian
office equipment. ward trade-off but a three-dimensional stakes, short timeframes UKTPO The Department for International previously, it has very few who have sat ambassador, referring to Prime Minister
game. says the UK could need twice as many Trade began with just 45 trade officials in the negotiating chair. [That] will be a Theresa Mays mantra on exit. It
Other countries may be less [negotiators] on its side. This would and says it is not starting from scratch, serious challenge for Whitehall. reminds me of Leonid Brezhnev saying,
impressed by the disruption caused, the economy should be economical.
8 FINANCIAL TIMES Wednesday 31 May 2017
Letters
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Corrections: corrections@ft.com
European partners compared with 1.3m. Pentagon contracts. of gross national income on overseas Bethesda, MD, US
RBS case shows why trust BA could divert resources Scotland, we systematically recreated
The chancellors domestic signalling has international implications challenging management situations for
must be rebuilt in business away from pension battle learners to confront, think through and
If Angela Merkel intended to announce that they become a self-fulfilling Sir, It seems that the major players in Sir, On May 25 (FT.com) you reported resolve. Doing this in small groups
a fundamental shift in Europes stance prophecy. the RBS Action Group have accepted that British Airways will appeal against enabled us to look at a range of
towards the rest of the world, a cam- In particular, painting the UK as an the latest RBS settlement offer (May the judgment on May 19 in which different approaches providing rich
paign appearance in a beer hall would unreliable ally will not facilitate the 30). This has, in effect, enabled RBS to Justice Morgan rejected all BAs claims and realistic learning processes.
have been a peculiar place to do it. Brexit negotiations. Meanwhile, the bully the small individual shareholders against the Airways Pension Scheme Then, as a community education
The German chancellors comments USs tolerance for statements like this, into also accepting the settlement. I say trustees who, in 2013, had decided to tutor at Northern College, Barnsley,
on Sunday suggesting Europe could no while large, is not inexhaustible. They bully because RBS is threatening pay a 0.2 per cent discretionary this was an approach regularly used
longer count on the US and the UK as a may cause Mr Trump to retaliate on anyone who pursues the case to risk increase to APS pensioners. with women and men who had little or
reliable partner have attracted consid- the trade front. The president has having costs awarded against them. The judge exonerated the APS no formal education since leaving
erable international attention. In real- sharply criticised Germany for its trade So now the case will be settled. No trustees and described the scheme school, but a great deal of experience in
ity, they were aimed at a domestic audi- surplus with the US. one will be found responsible. RBS will actuary as of outstanding ability. BA the workplace, often as union
ence and were presumably expected The remarks should, however, be pay out 800m (of shareholders is appealing on two points of law. The representatives, organisers and shop
not to cause consternation across the taken in earnest in the rest of the EU. money) to a group of its shareholders judge said that he would allow the stewards. This enabled both students
Channel and the Atlantic. For Europe genuinely to replace the without admitting any culpability or appeal because, if he did not, BA would and tutors to deploy not only their
But they should also stand as a warn- USs security role, including protecting liability. It all gets swept neatly under apply directly to the Court of Appeal, everyday working and organising
ing to the rest of the EU. If Europe is to its eastern border, requires more mili- the carpet and no one goes to jail. It has which would prolong the litigation and experiences, but, in confronting real-
supplant the USs role as both a security tary spending and co-ordination, and a taken nine years for this to happen. It is result in an even longer delay in life dilemmas and apparent
and an economic hegemon, it needs to more unified foreign policy. not just RBS the HBOS Reading trial making legitimate payments to contradictions, we were able to test
accelerate collective action. The shambles of the EUs recent took nearly 10 years to be investigated Beijing is changing course pensioners. At the anticipated solutions based on their past personal
At one level, Ms Merkels comments response to the refugee crisis shows and brought to court. completion date of the permitted and group experience. Smaller groups
are a statement of the obvious. European countries are often far from The key players do not come out of to avert headwinds appeal it is calculated that would produce different approaches.
Even before Donald Trump became united when responding to security this well. Something is wrong with the Sir, The Big Read on China and Japan approximately 6,100 pensioners (out These were later considered and
president, the US complained that problems. Serious Fraud Office, Crown (May 29) is a timely reminder that of 28,000) will have died since BA compared in seminars, looking for
European nations were failing to pull Greater coherence is also needed in Prosecution Service, Financial Conduct trees do not grow to the sky. initiated the litigation in 2013. optimum or alternative strategies.
their weight, for example by falling the economics sphere. European poli- Authority, Financial Reporting Council, The Beijing government is doing all The discretionary increases are the It worked well since it was based
short of the Nato members target of 2 cymakers have long complained about Department for Business, Energy and the right things repositioning the means to restore Colin Marshalls 1984 on the real work and recognisable life
per cent of gross domestic product US economic hegemony, particularly Industrial Strategy, etc when 12bn of economy from exports to domestic pre-privatisation pension promise, the experience of students and tutors. We
spending on defence. the dominance of the dollar. And yet RBS shareholders money raised in a consumption, building an efficient breach of which was collateral damage now know that those involved in these
Barack Obamas foreign policy they have done little to facilitate rights issue can disappear so quickly. infrastructure of roads, high-speed from the governments 2010 decision learning processes students and
instincts were more hands-off than greater use of the euro, which would Very, very few people in the UK have trains and underground lines and to pay CPI rather than RPI increases to tutors went on to be successful
that of his predecessor, as evidenced by include showing willingness to run cur- gone to jail as a result of their actions pouring money into research and public-sector pensions. The litigation managers, leaders and representatives
his minimal military involvement in rent account deficits to provide euros that led to the 2007/08 financial crisis, development. (In PPP terms, R&D has cost BA millions of pounds. Early in across a wide range of professions in
Syria. The inception of Mr Trump, an abroad, and creating a eurozone-wide yet millions of people have suffered investment equalled that of the entire the case, BA attempted to make the management, education and unions.
America-first president, has the poten- deep and liquid pool of safe assets. severe hardship as a result. The SFO, EU by 2013.) This strategy will carry APS trustees personally liable for the David Browning
tial rapidly to accelerate that trend: Mr If Ms Merkel is serious about Europe CPS and/or BEIS should be given more the economy through the next five costs of defending themselves. In July Huddersfield, W Yorks, UK
Trumps rumbling about trade imbal- becoming a larger financial force, she resources and told to pursue problem years but the danger signs are growing. 2014, a judge ruled that it was entirely
ances is threatening the USs leading needs to face down those in Germany, cases much more speedily. Companies The most immediate concern is the unrealistic and unreasonable to Coffers filled by poor ideas
role in anchoring the world economy. including her own ministers, who should not be allowed to hide behind growing level of debt needed to achieve expect the trustees to put their
Ms Merkels remarks must be placed oppose greater eurozone integration. expensive lawyers. The whole process an incremental 1 per cent growth in personal assets at risk for actions on Sir, Your editorial on May 30 defends
in the context of Germanys forthcom- Hyperventilation over remarks of settlements, where management gross domestic product, but there are behalf of their beneficiaries. BA the venerable UK Treasury on the
ing election. She has been criticised by made in a stuffy beer tent is unwar- admit no blame and shareholders pay two more pervasive headwinds. The subsequently agreed to pay all the costs grounds that it is a restraint on bad
Martin Schulz, her main rival, for risk- ranted. Still, Ms Merkel needs to take the fines/settlement amounts, mean demographic decline in the workforce of the action. ideas originating in the rest of
ing an arms race by supporting the 2 into account how her words might be management get off scot-free and also will be far more extreme and occur Especially in view of BAs current Whitehall. I dont doubt other
per cent target. This intervention sug- interpreted abroad. Even more so, she needs a review. over a far shorter period than that of problems, would it not make better departments inclination to submit
gests such a move reflects European should keep preparing the German and These steps plus others no doubt Japan. If the demographer Yi Fuxian is sense for the BA board to abandon its misguided policy ideas, but a strong
solidarity, not German belligerence. the wider European public for the diffi- are required to rebuild trust in correct and the true fertility rate from battle against its pensioners, their case can be made for arguing the
Still, she must be hoping that the cult task of increasing European secu- business and to tackle what Prime 1990 to 2016 was far lower than the trustees and their advisers and instead Treasury is as much a creator of bad
comments are not taken sufficiently rity and economic integration to turn Minister Theresa May calls the official figure, the labour shortage will to focus its efforts and money on policy as it is a blocker of it. Rail
seriously in London and Washington her aspiration into reality. anything goes business culture. be intense, aggravated by the fact that running the airline? Perhaps the huge privatisation, the failed Public Private
Cliff Weight the drift from farm to factory is coming sums that have been spent on the Partnership for London Underground,
Director, ShareSoc to an end; by 2015 only 28.3 per cent of current, nihilistic legal battle would tax credits and the Private Finance
West Malling, Kent, UK workers were employed in agriculture. have been better spent making BAs IT Initiative have at the very least not led
Finally, investors might not want to system resilient? to the benefits the Treasury promised;
Inconsistent treatment admit this but ownership of many Mike Post at worst they have imposed substantial
Chinas real credit risk Sir, I note with interest the impending
settlement of the RBS court case (May
household goods from colour TVs and
mobile phones to air conditioners is
approaching saturation 30 per cent
Marlow, Bucks, UK
Comment
Deeper European integration is on hold indefinitely
accelerating EU integration are no more than three centuries, after Scotland and domestic currencies. Many policymak- be volatile but they are relatively stable. European treaty. However, neither the
OPINION than a pipe dream. England unified in 1707, the British cre- ers in these countries behave as if they In Poland, the zoty has hovered around Swedes nor the new members were part
Britannias ghost will haunt the EU ated a successful monetary union. Yet were under the influence of Sir Alan current levels since the start of the cen- of the then-European Community when
Adam long after the UK has left. The EU mem- England, Scotland, Wales and Northern Walters, Margaret Thatchers notori- tury. In the Czech Republic, the koruna the opt-out clause was introduced. And
Glapinski ber states outside the economic and Ireland retain separate national football ously Eurosceptic economic adviser has appreciated. the EU leadership must know it would
monetary union are in no rush to join teams to this day. Beyond the UK, it will when she was prime minister. Mild currency fluctuations are a small be foolish to force a country to meet
the euro. Some are behaving conspicu- be a long time before European states The British, with the 1991 opt-out price to pay for preserving autonomous treaty obligations against the will of its
M
any Europhiles believed, ously like the British. Their antipathy are willing to give up their places at the clause, were the first to secure the right monetary policy. For relatively small own people.
shortly after the UK seems not to bother those running the to stay outside the single currency. In economies, such policies are efficient. Overcoming the challenges of mone-
voted last June to leave monetary union. They have enough 1993 the Danes followed suit. Sweden is Sweden has used the exchange rate as a tary unification appears an insuperable
the EU, that getting rid of
Britain, that eternal trou-
problems with current members.
Its hard to imagine a landmark event
More nations outside acting similarly despite not having an
opt-out. Central and eastern European
major tool to combat deflation. The
same is true for the Czech National
hurdle for the European establishment,
even after Mr Macrons victory. The
blemaker, would pave the way to deeper that would reverse this reluctance for the euro have started to states that joined the EU in the 2000s Bank, which intervened in the exchange Treaty of Rome is 60 years old, far too
integration of the remaining states. One
year on, even after the ascent of
greater economic integration. Immedi-
ately after Mr Macrons victory, many
share British doubts initially saw euro membership as a
badge of honour. Then the sovereign
markets to prevent the currency from
rising, although it has since adjusted the
short a period to allow the European
nations to forget the benefits of national
Emmanuel Macron as a pro-European German politicians were quick to offer about the single currency debt crisis destroyed any belief that the policy. policies.
French president, it is time for a more him support, provided he forgot any euro area is a New Jerusalem. And most The Polish authorities quickly real- EU citizens still behave the way Mrs
sober view. idea of the EMU becoming a system for G7 or the International Monetary Fund. new members wrote the single currency ised how EMU imbalances were the key Thatcher once described. Conquering
The EU has made progress in areas transferring funds from creditor to The British were sceptical about the out of the monetary script. reason behind the euro sovereign debt Mount Everest, they plant not the EU
such as European banking supervision. debtor countries. single currency from the beginning. For The treaty obligation to join EMU was crisis. Warsaw has signalled that in the emblem but their national flag. Well
Yet no major member state is willing to Some question whether the UK will years this was seen as another sign of invented to prevent competitive deval- next 10 years it has no interest in join- need a long time before a unified EU
give up decision-making power over survive Brexit. I would put the issue dif- Britains European backwardness. How- uations of the sort seen after the ing. The country needs time to bring football team takes the field in the union
vital issues of taxation and spending. ferently. Britain offers Europe valuable ever, in the past couple of years, more break-up of fixed exchange rates. Yet Polish living standards more in line with colours.
Further development of the economic lessons about what is needed for deeper EU countries outside the euro have double-digit inflation and the threat the rest of the continent.
and monetary union is on hold. All the integration, a long process requiring started to share British doubts, showing of competitive devaluations belong to Some purists say remaining outside The writer is president of Narodowy Bank
ideas, including those from Paris, about many checks and balances. Over more unmistakable fondness for preserving the history books. Exchange rates may EMU without an opt-out breaches the Polski, Polands central bank
D
onald Trump has been the Hard power and lower taxes: these are
American president for just the US priorities under Mr Trump. They
over four months. It is still are also traditionally Republican. Wag-
impossible to predict what ing what amounts to an economic war
his presidency will mean. on ones supporters might seem per-
But it is already a transformative event: verse. But there is method in the mad-
Mr Trump has revolutionised our ideas ness. As the programmes poor whites
of what the US stands for. We live in the depend upon are slashed, those who
world the US made. Now it is unmaking voted for Mr Trump will become more
it. We cannot ignore that grim reality. desperate. This will make politics even
Mr Trumps domestic programme is more polarised. That has been the all-
in accord with the agenda of the Repub- too successful ploy of pluto-populism. Vladimir Putin. He appears to care not interests and values, it is moribund. The soft power of democracy is not it was at least a recognition that climate
lican party. Its aim is to cut taxes on the So what is new at home? The answer is at all about democracy or human rights. Now consider the west and, above all, what it was. It has produced Mr Trump change is a real and pressing danger.
rich by lowering spending on the poor. Mr Trumps personality. He is in a per- Neither does he seem committed to the the US in the world. The rise of China as leader of the worlds most important Now may well be the last chance to head
The Congressional Budget Offices manent war with reality and so with the mutual defence principles of Nato. has reduced its economic and political country. It is not an advertisement. off the worst of it.
analysis of the American Health Care media and his intelligence services. The Mr Trumps alt- right supporters weight. A recent history of failed wars Yet much is at stake in the world. In agreement with many Republi-
Act, recently passed by the House of press and the bureaucracy have both see not a divide between the democra- and financial crises has savaged its lead- Three big challenges exist: prosperity, cans, Mr Trump refuses to recognise the
Representatives and the replacement of held up well. So has the legal system. But cies and the despotisms; but rather ers credibility. The choice of Mr Trump, peace and protection of the commons. threat. He finds it impossible to admit
Barack Obamas Affordable Care Act, is these are early days. The president is between social progressives and glo- a man so signally lacking in the virtues, On the first, Mr Trumps administra- that strong and concerted government
startling. Over the 2017-26 period, the undisciplined and his administration balists, whom they despise, and social abilities, knowledge and experience to tion is still tempted by the idea of action might be required. So he rejects
act would reduce tax revenues by chaotic. Under Mr Trump, a terrorist traditionalists and nationalists, whom be expected of a president, has further restricting imports or at least by bilat- the very notion of environmental limits.
$992bn, paid for by a $1.1tn reduction in outrage might produce a lurch into they support. For them, western Euro- damaged the attractions of the demo- eralism. So far its protectionist bark An optimistic and self-confident US
expenditures on Medicaid and other authoritarianism. peans are on the wrong side: they are cratic system. seems worse than its bite. Nevertheless, would embrace the challenge of over-
subsidies. According to the CBO, the Mr Trumps impact on the very idea of enemies, not friends. Now the west seems deeply divided globalisation is stalled. Without US sup- coming such limits. Alas, Mr Trump
number of uninsured might have the west is already significant. The west- Deep down, Mr Trump might agree. internally too. Across the world, people port it could well remain so. does not speak for that US. If the US
increased by 23m by 2026. ern alliance is still the worlds biggest He is surrounded by orthodox advisers, question the future role of the US. On peace, the question remains withdrew from the Paris accord, the rest
Proposals for tax reform and spend- economic bloc and largest repository of such as James Mattis, defence secretary. Would it not be wiser, they wonder, to whether Mr Trumps instinct for con- of the world must consider sanctions.
ing go in the same direction. Discretion- scientific and business knowledge. But Yet the presidents heart seems not move closer to China? flict can be contained. The biggest chal- It is possible to look at the first four
ary spending proposals for next year it is disintegrating. As Angela Merkel, to be in it. The west may not be dead. Mr Trump would not appear to mind lenge is the relationship with China. Mr months of this presidency as a story of
include a $52bn increase in defence chancellor of Germany, admitted, But as a set of countries with shared if this did happen. He voluntarily with- Trump seems to thinks he can do busi- successful containment. It is also possi-
spending, paid for by big cuts in other Europe can no longer rely on the US. It drew the US from the Trans-Pacific ness with Xi Jinping, Chinas president. ble to view Mr Trump as a normal
areas. These include a $13bn (16 per might have been unwise to say so, but Partnership, aimed at being an alterna- Maybe he likes the autocracy. Republican. Unfortunately, regular
cent) cut to health and human services;
$12bn (29 per cent) to the budgets of the
she was surely right.
Mr Trump seems to prefer autocrats
The west may not be tive to Chinese leadership. Under him,
the US seems to be abandoning the
Perhaps the most depressing conse-
quence of Mr Trumps ascent to power
Republicans have damaging ideas and
Mr Trump may not be contained. This
state department and the international to todays western Europeans. He is dead but, as a set of notion of soft power. Indeed, the pro- emerged at the G7 meeting in Taormina, still looks like the end of the US-led
development agency; and $9bn (14 per
cent) to education. The diplomatic
warm towards Turkeys Recep Tayyip
Erdogan and Rodrigo Duterte of the
countries with shared posed budget tells us that the adminis-
tration sees the idea as largely empty:
Sicily, at the weekend. The Paris climate
change agreement of December 2015
world order.
capacity of the US would be devastated. Philippines, not to mention Russias interests, it is moribund guns matter, diplomacy does not. was not an answer to the challenge, but martin.wolf@ft.com
O
f all the misfortunes we step towards improving your pension is spent saving through auto-enrolment. fered the biggest drop in real wages of their pension pots to pay off housing
millennials like to chew to believe that you will have one. That is the good news for millennials. any generation since the crash of 2008. debt. Some will inherit property, of
over when feeling sorry for In 2012 the UK became one of the first improving. This matters: There are three buts that take the Employers also cite the cost of auto-en- course, but the distribution of such lega-
ourselves, one of our
favourites is the notion we
countries in the world to require
employers to enrol almost all employees
fatalism is not conducive to gloss off. First, people are not saving
enough into their auto-enrolment pen-
rolment as one reason they are handing
out meagre pay rises.
cies will be patchy and unequal.
The dangers posed to the future of
will have to work until we die. It came as automatically into a workplace pension. planning for old age sions. By 2019, average combined con- Second, auto-enrolment is designed retirement by Britains festering hous-
no surprise to young people in the UK, Employees can opt out but by default tributions from the employee and for a traditional labour market of ing crisis should trouble any policy-
for example, when the World Economic both they and their employers will pay vastly better than these new defined employer will rise to roughly 6 per cent employers and employees. Yet about 15 maker feeling good about auto-enrol-
Forum last week urged the country to in. The policy has not yet been fully contribution schemes but they were less of a full salary. Yet the WEF says people per cent of the UK workforce is self- ment. It would be a tragedy if one of our
prepare for a workforce of octogenari- implemented but the impact is clear. evenly spread. That led to pensioner need to save between 10 and 15 per cent employed. Innovation is needed to most successful policies falls victim to
ans. Pensions? Retirement? Round-the- Between 2012 and 2015 the number of haves and have-nots. Even at the in order to have pensions worth about scoop them into the net. our biggest policy failure.
world cruises? We know these will be private-sector employees with a work- peak of the defined benefit era 50 years 70 per cent of their pre-retirement Third, when experts predict the pen-
history by the time we are old. place pension surged from 5.4m to 10m. ago, one-third of men and two-thirds of incomes. Contribution rates (or other sion incomes people will need for a sarah.oconnor@ft.com
10 FINANCIAL TIMES Wednesday 31 May 2017
CROSSWORD ACROSS
1 Brush back soiled tiles, most
3 Design stylish portable shelter
(6)
No. 15,563 Set by AARDVARK sturdy (8) 4 Fish, with whale initially
5 Writer might use this current disappearing below, become
fund, when banking royalty? (6) calmer (6,4)
9 Old marketplaces give out 6 Type of diet thats fine in
rejects temporarily (3,1,4) alcoholic surroundings? (3-5)
10 Full-body garment from store is 7 Jumble by hospital put in
enormous it must be returned reserve (8)
(6) 8 Gareth excitedly drained prune
11 Dignity, regularly with writer, wine (3,5)
retired together (2,6) 13 Street band leader in Southall
12 Comparatively simple puzzle, wears check undergarment (6,4)
with time to spend, one cracks 15 Six-pack perhaps taken home,
(6) and they endlessly booze (8)
14 Post of journalist in this period 16 Half-sure Elizabethan writer
varies (10) curtailed feature of plot? (8)
18 Film of the King in sad state 17 Worth playing sport on good
(4,6) floor covering (5,3)
22 Spontaneous performance 19 Supplies suit sample (4,2)
mostly better (6) 20 Two businesses operating
23 General once overturned places secure site (6)
in Indian city (8) 21 Ate midday meal? Daughter left
24 Chilling territory oodlum out piece of meat (6)
recalled? (6)
25 Jasmine maybe stirred by such Solution 15,562
a top ones knitted (8)
% $ + $ 6 $ 0 $ / $ < 6 , $
26 Go from work unit into English 5 2 7 6 7 7 &
city (6) $ / / 8 5 ( ( 6 2 7 ( 5 , &
27 An easy putt can be shown 1 2 $ 8 ( ( 8
' 8 * 2 1 * 3 5 , 1 & ( 6 6
alongside clubhouse, if really , 5 * % < ( ' 7 (
JOTTER PAD necessary (2,1,5) 6 / $ < ( 5 - 7
DOWN + 0 5 8 1 $ 0 2 . & $
0 0 3 $ 5 $ 1 *
1 Poorly in chest? Experts 0 = / ' $ < 0 5 $
needed (6) ( 0 ( 5 , 7 8 6 8 3 5 2 $ 5
2 Artist trains to obtain that 5 $ 1 5 2 / $
% 8 / / ( 7 , 1 8 1 3 / 8 *
special quality, making $ 2 $ $ * ( $
masterpiece? (6) 8 1 7 + 5 2 1 ( 8 6 8 5 ( 5
Wednesday 31 May 2017 11
Euro / dollar Brent crude GSK 10-yr Treasury LSE Italian stocks Talk Talk Gold
Media moves TVB saga shows (FTSE MIB)
Chinas influence over HK 0.1% 1.6% 1.8% 2bp 1.5% 0.2% 5.5% $4
INSIDE BUSINESS, PAGE 12
$1.1172 $51.48 16.73 2.23% 34.42 20,814 172.1p $1,261
COMPANIES
INSIDE BUSINESS
Energy
ASIA
I
said. The planned closure is a sign of the nuclear plants in its Alternative Energy construction in the US was slowed by renewable energy, and its costs continue t is hard to exaggerate the cultural and political influ-
intense competition from cheap gas- Portfolio Standard that supports wind the Three Mile Island accident and had to fall, wind and solar power may also ence of TVB, Hong Kongs most powerful broadcaster,
fired generation that is jeopardising the and solar power. Three Mile Island has stopped by Chernobyl in 1986, meaning become significant competitive threats in the Chinese territory.
economics not just of new reactors, but been losing money for five years. that the country has a large fleet of age- to nuclear power across the US. For the Established by the media mogul Sir Run Run Shaw,
even of existing nuclear plants. The flood of cheap gas released by the ing reactors. time being, however, nuclear plants who died three years ago, TVB dominates television
One of Three Mile Islands two reac- US shale boom has driven down whole- Closures of nuclear plants for largely account for the great majority of Penn- news and entertainment in the city of 7m. Its broadcasts
tors has remained closed since it suf- sale power prices and made it more dif- economic reasons have been announced sylvanias electricity generated without can also be picked up by tens of millions more viewers
fered a partial meltdown in 1979. The ficult for nuclear plants to compete with in recent years, including Kewaunee in creating greenhouse gas emissions. across the border in Chinas southern Guangdong prov-
ince. With no serious competition in its home market, TVB
wields considerable influence.
Under Hong Kongs Broadcasting Ordinance, TVB and
other TV stations can only be controlled by local residents.
Food & beverage. Meat producers This rule is one of the important guarantees of Hong
Kongs autonomy aside from foreign affairs and defence
Liquidity troubles loom for JBS as crisis drags on promised by Beijing on the former UK colonys reversion
to Chinese sovereignty in 1997. However, a recent routine
review by Hong Kongs market regulator unexpectedly
turned up evidence that TVB may in fact be controlled by a
mainland Chinese company. The discovery raises ques-
tions about whether other Hong Kong groups might be
Asset sales likely when lenders controlled by Chinese partners.
have weighed up implications The TVB situation, which the market regulator
described as a novel and difficult case, can be traced back
of executives plea bargain to 2011 when Shaw sold his controlling stake in the broad-
caster to a consortium headed by Hong Kong businessman
JOE LEAHY AND ANDRES SCHIPANI Charles Chan. Mr Chan, in accordance with the territorys
SAO PAULO broadcasting code, is a permanent resident.
Mr Chan exercises his control of TVB through a holding
Joesley Batista, the Brazilian meat company called Young Lion, which owns a 26 per cent
tycoon, left his reputation in tatters stake in TVB. His partners in Young Lion include China
when he departed Brazil for the US this Media Capital, a Chinese government-backed fund that
month after confessing to one of the has also invested in Manchester City Football Club, and
countrys biggest bribery scandals. established a Shanghai-based production joint venture
But one thing Mr Batista did not leave with Steven Spielbergs DreamWorks Animation. CMC is
behind was his 30-metre, Italian-made headed by Li Ruigang, a former Shanghai government
Azimut 100 Leonardo yacht. Called official and one of the most powerful media executives in
Why Not, it was one of the most luxu- China.
rious in Brazil. With Mr Chan holding 56 per cent of Young Lions voting
It was shipped out of Itaja, bound for shares, TVB appeared to be firmly in local hands. Or so
the US, where it will be repaired and everyone thought until TVB proposed a share buy-back
sold, said So Paulo-based JBS, the that would boost Young Lions stake to 41 per cent, breach-
worlds largest meatpacker, which Mr ing the 30 per cent level at
Batista used to run alongside his brother which controlling sharehold-
Wesley until he resigned his chairman- ers in Hong Kong are
TVB appeared
ship of the company last week. Wesley required to make an offer for to be firmly in
Batista has stayed on in So Paulo as listed companies. If they do
chief executive. not wish to, then the market
local hands. Or
Joesley Batistas resignation and regulator can be asked for an so everyone
departure from his native country he exemption, also known as a
is reported to have decamped to New whitewash waiver.
thought
During its deliberations,
the regulator asked for more information about Young
Investors are rightly Lions shareholding structure. Young Lion refused to com-
concerned that value at ply. The regulator had to use its statutory powers to force
Young Lion to divulge the information. While Mr Chan
JBS USA could be used to holds 56 per cent of its voting shares, CMC controls 85 per
fund the payment of fines cent of its non-voting shares. Contrary to their moniker,
the regulator discovered that Young Lions non-voting
shares in fact give CMC power of nomination, approval or
York has left the vast meatpacking Weighty stake: pany, but it is a serious situation and actually see they have a very reasonable get divorced or quit your job. Oh, and disapproval [of non-executive directors] amounting to de
empire facing a crisis. aggressive theres still a lot of uncertainty about schedule in terms of their debt and they you dont go out and sell assets, said one facto voting rights. Under a relationship agreement
He and six other JBS executives signed dealmaking over whats coming, potential fines and any are able to generate a reasonable ebitda banker in So Paulo. with Mr Chan, CMC can even force him to sell his stake in
a plea bargain in a case that reaches to the past 10 years increase in reputational risk, says from the businesses that they have, The admission by the brothers and Young Lion to another Hong Kong permanent resident of
the very top: Mr Batista secretly taped made Brazils Johnny Da Silva, director of corporate said Moodys analyst Erick Rodrigues. five other executives of JBS and its hold- CMCs choosing. This, the regulator noted, is very far
President Michel Temer allegedly dis- JBS the worlds ratings at Fitch. But bankers familiar with the group ing company J&F that they paid bribes from a normal situation in which the non-voting shares of
cussing bribes and a fellow executive largest meat In JBSs favour are its solid assets, expect these fundamentals to be tested could lead to material adverse a company . . . have no real say except in situations which
admitted the company paid R$600m in producer in bankers say. The Batista brothers in coming weeks as liquidity tightens. It changes that could trigger covenants, affect their class rights.
kickbacks to 1,829 politicians. terms of aggressive dealmaking over the past 10 was too early to say what assets said a bankruptcy expert. SY Tam, TVBs spokesman, argues the regulator is using
The company that successive Brazil- revenue, years, with help from Brazils state thegroupmightunload, they said. Research house Covenant Review said a different yardstick and that only voting shares should
ian governments fostered as a national capacity and development bank, BNDES, made it the Someone very wise once said to me the covenants covering four bonds be counted when determining control under the Broad-
champion has now been downgraded by production worlds largest meat producer in terms that at the height of a crisis there are issued by a unit of the group, JBS USA, casting Ordinance. It is therefore wrong to say Li Ruigang
credit rating agencies. It is facing probes Victor Moriyama/Bloomberg
of revenue, capacity and production. It four things you dont do get married, worth $3.5bn had a gaping hole that or CMC controls TVB from the shadows, Mr Tam said.
in Brazil for insider trading and has is the worlds biggest producer of beef, allowed unlimited loans from the sub- The market regulator also expressed concern that
been dumped by investors. Its stock is chicken and leather and a leader in lamb sidiary to JBS SA, the Brazilian arm. Young Lion may not have provided Hong Kongs Commu-
down nearly 33 per cent this year and its as well as being the second largest pork JBS share price Investors are rightly concerned that nications Authority, which enforces the Broadcasting
bonds off by about 15 per cent. It is fac- producer in the US, Moodys Investors R$ value at JBS USA could be used to fund Ordinance, a complete picture of its shareholding struc-
ing up to R$11bn in fines from Brazilian Service wrote. This was the result of a the payment of fines resulting from that ture. This information has now been passed to the media
public prosecutors and unknown penal- series of mergers from the acquisition of 14 scandal, Covenant Review said. regulator, which will determine if TVB is in breach of Hong
ties from regulators in the US, Australia, Swift of the US in 2007 to Pilgrims As for the brothers, their future is Kongs local-control rule.
the UK and the other 146 countries in Pride, a US poultry company, in 2009. 12 uncertain. In an open letter to the Bra- All this is happening just weeks before the 20th anniver-
which the company operates. Last year, JBS generated R$170.4bn in zilian media last week, Joesley Batista sary of Chinas resumption of sovereignty over Hong Kong.
Bankruptcy experts say it is only a sales and had R$46.9bn in net debt. 10 blamed Brazils system of political cor- The July 1 festivities will be attended by a senior Chinese
matter of time before the group enters a While its leverage was relatively high for ruption for leading them astray. Communist party official, possibly even President Xi Jin-
form of restructuring or an asset dis- its rating before the scandal, it also had a 8 In other countries outside of Brazil, ping. It is easy to predict the comments about Beijings
posal programme to deal with expected strong cash position, rating agencies we showed ourselves capable of expand- respect for Hong Kongs autonomy under the one coun-
tightening liquidity conditions as lend- said. Its combined R$10.7bn in consoli- 6 ing our businesses without transgress- try, two systems formula.
ers focus on the implications of the plea dated cash and $4.3bn in revolving ing ethical values, he said. The brothers But when it comes to understanding how the territory
bargain. JBS declined to comment. credit facilities covered most of its 4 are about to find out whether regulators really works, it is best to ignore the rhetoric. Follow the
Fitch, the rating agency, downgraded R$18.1bn in short-term debt as of March Jan 2017 May will be swayed by that argument. corporate paper trail instead.
JBSs credit rating from BB+ to BB. I this year, Moodys noted. Additional reporting by Eric Platt in
Source: Thomson Reuters Datastream
dont think this is the end of the com- From a financial perspective, we New York tom.mitchell@ft.com
Media Technology
Amazon live TV viewers will need licence in UK Android creator launches iPhone competitor
DAVID BOND MEDIA CORRESPONDENT 79 subscription, the 147 annual already correctly licensed, it is not TIM BRADSHAW SAN FRANCISCO iPhone in 2008, the Android operating make its phone more resistant to drops
licence fee plus an extra fee for the chan- thought the introduction of Amazons system now runs on more than 80 per and scratches than the aluminium used
Users of the live television channels Andy Rubin, the creator of Googles
nels they want to watch. In the case of new channels will affect many British cent of all smartphones sold, according in Apples iPhones and much of Sam-
that Amazon has added to its Prime Android platform, has launched a
users wanting to watch ITV that would households. But analysts said it was fur- to market researcher IDC. Google said sungs range.
Video service in the UK will have to pay gadget company called Essential, with
cost an additional 3.99 a month. ther evidence of the increasingly frag- this month that there were more than The device comes in four colours but
the TV licence fee on top of two other a modular mobile handset priced at
Amazon is investing heavily in video mented nature of the TV industry as tra- 2bn Android devices in active use. its minimalist design bears no branding.
charges to access the broadcasters on $699 and designed to challenge the
content and original programming such ditional live channels are upended by Mr Rubin started Essential after leav- Like Apples latest iPhone 7, it also lacks
offer. iPhone and a smart-home device to
as Jeremy Clarksons Grand Tour and The streaming services such as Amazon and ing Google in 2014, where he had most a traditional headphone socket.
rival Amazons Echo.
Although the live TV service, launched Man in the High Castle, to try to lock in Netflix. recently been in charge of its Replicant Essentials smartphone comes with a
by the technology group last week, does Prime customers. The addition of the Tom Harrington, Enders analyst, By creating devices that evolve with robotics division. He also helps to run a 360-degree camera accessory, the first
not allow access to BBC channels, UK live channels is seen as a direct chal- said: Its a little bit confusing and a you and will always play well with oth- Silicon Valley venture capital firm, Play- in an anticipated range of modular
law requires all users of live television to lenge to rivals such as Sky and Netflix. product of how television is no longer ers, Mr Rubin has pledged to fix some ground Global, which invests in hard- attachments that could help the phone
buy a licence even if, like Prime, it is Amazon confirmed that customers just what comes down the aerial and of the problems that he admits Android ware start-ups. to keep pace with trends such as virtual
being streamed over the internet. The would need a licence fee to watch live into the TV set. helped to create, such as planned obso- Essentials first product is an reality without customers needing to
broadcasters being offered on Amazon TV programmes, including through Users of the BBCs iPlayer service also lescence and lack of interoperability Android-based smartphone running buy a whole new handset.
Prime include ITV, Eurosport and Dis- Amazon Channels. It added that the need a licence. In the past few weeks the between different platforms. Qualcomms Snapdragon 835 processor, Essential Home, a voice-activated
covery. requirement was outlined on the Ama- corporation has started asking users to Google acquired Android, co-founded with an edge-to-edge screen and a body assistant for the home that includes a
The legislation means Prime custom- zon Channels online help page. register, although the BBC says this is by Mr Rubin, in 2005. First launched on made of titanium and ceramic. The touchscreen, will go on sale later this
ers will have to pay Amazons annual With 94 per cent of people in the UK not to catch licence fee cheats. an HTC device as a challenger to Apples company says these unusual materials year, running its own Ambient OS.
Wednesday 31 May 2017 FINANCIAL TIMES 13
COMPANIES
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Wednesday 31 May 2017 FINANCIAL TIMES 15
COMPANIES
Contenders line up for control of rare earths mine and pharmaceutical companies are fol-
lowing suit.
Last week Merck became the first
stein, predicts a practice-changing
result in the treatment of breast cancer
patients who have a mutation in their
company to win approval to use its BRCA genes.
Keytruda immunotherapy in all
HENRY SANDERSON LONDON Mike Pompeo, director of the CIA, prosium that go into magnets used in ies. We really do believe that even in the patients whose tumours have a biologi-
said this month that the US dependence batteries and wind turbines. current markets certain of these ele- cal trait or biomarker regardless of
A battle is heating up for control of a
on foreign sources of rare earths was a Tom Clarke, a former care home oper- mentswillbeprofitable,hesaid. where the cancer is located.
bankrupt mine that is the only signifi-
very real concern. ator who has been buying bankrupt US Set against Mr Clarke in the auction is At Asco the US group is due to present
cant US source of the rare earth ele-
Last year, the US imported $120m of coal mines, has teamed up with Switzer- a group of Molycorp creditor hedge full results from the trial that convinced
ments used in advanced electronics
rare earth metals, according to the US land-based Pala Investments and Aus- funds. They include Chicago-based JHL the regulators.
and some defence applications.
Geographical Survey more than 70 tralian rare earths explorer Peak Capital Group, run by James Litinsky, We have now approved a drug based
A group led by a former nursing home per cent from China. Resources to offer $1.2m for the mine. and QVT Financial, which have teamed on a tumours biomarker without
operator and a Switzerland-based pri- The winner of the auction is likely to Theres a broad support that we need up with Shanghai-listed Shenghe regard to the tumours original loca-
vate equity fund will vie with a team of have to pass scrutiny by the Committee tohavetheseelementshereintheUS,Mr Resources, a rare earths processor. tion, said Richard Pazdur, one of the
US hedge funds and a Chinese rare on Foreign Investment in the US, and Clarke said, adding that there was a relia- Adding to the complexity of the proc- top oncologists at the US Food and Drug
earths company in an auction set to take on an estimated $80m in environ- ble market for the materials given grow- ess, a company owned by JHL, QVT and Administration.
decide the fate of the bankrupt Moly- mental liabilities. ing demand from electric vehicle batter- New York-based asset manager Oaktree Investors are also watching out for a
corp-owned mine on June 14. Molycorp invested more than $1.5bn Capital own the mineral rights to the study of a drug made by Loxo Oncology.
At stake is whether the US can suc- into the Mountain Pass mine, which is mine. The small US biotechnology group has
cessfully mine its own resources of rare about 50 miles south of Las Vegas, but a $120 m $1.5 bn Mr Clarke said his group could still been singled out by the organisers of
earths, which are increasingly being collapse in prices of rare earths led the US imports of rare Amount Molycorp use the mine site to process material Asco as being of particular interest.
used in electric vehicle magnets as well company to declare bankruptcy in 2015. earth metals invested in rare from elsewhere if they did not get the Loxo is developing a medicine for
as wind turbines and end its reliance The mine contains elements such as 70% of which earths mine before mineral rights but he hoped to negoti- patients whose tumours have a specific Many groups hold back results of
on Chinese supplies. neodymium, praseodymium and dys- came from China prices collapsed ate for them if he won. genetic defect. It is being trialled in a trials to make a splash at the forum
Telecoms
MARKET DATA
-0.12% -0.10% -0.20% -0.28% -0.22% -0.02% -0.06% -0.279% -0.115% -1.32% -0.19%
No change
0.24% 0.156%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
May 01 - - Index All World May 01 - May 30 Index All World May 01 - May 30 Index All World May 01 - May 30 Index All World May 01 - May 30 Index All World May 01 - May 30 Index All World
S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul
7,547.63 2,343.68
2,412.82 19,677.85
2,384.20 15,586.13 12,598.68
15,373.36 7,288.72 19,289.43
12,438.01 2,205.44
Day -0.12% Month 1.21% Year 14.96% Day -0.31% Month -1.37% Year 9.13% Day -0.28% Month 4.43% Year 19.97% Day -0.24% Month 1.29% Year 21.92% Day -0.02% Month 2.51% Year 16.89% Day -0.39% Month 6.27% Year 19.02%
Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
6,203.71 25,701.63
49,261.33 49,379.49 1,533.66 10,876.90 3,204.79
6,047.61 1,517.54 10,715.80 24,578.43 3,171.36
Day -0.10% Month 2.59% Year 25.75% Day -0.14% Month 0.27% Year 7.34% Day -0.22% Month 0.94% Year 11.57% Day -0.07% Month 1.50% Year 19.43% Day 0.24% Month 4.41% Year 24.91% Day -0.30% Month 0.92% Year 14.35%
Dow Jones Industrial New York Bovespa So Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
31,159.40
21,038.50 65,403.25 3,288.93 3,257.06
20,940.51 64,098.01 5,305.94
5,267.33 20,814.48
20,609.16 29,918.40
Day -0.20% Month 0.47% Year 17.71% Day 0.53% Month -2.05% Year 30.83% Day -0.50% Month 0.73% Year 17.52% Day 0.15% Month 1.00% Year 13.79% Day 0.08% Month -0.78% Year 10.48% Day 0.16% Month 4.15% Year 16.91%
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 22233.12 22347.43 Cyprus CSE M&P Gen 76.67 77.09 Italy FTSE Italia All-Share 23058.36 23024.74 Philippines Manila Comp 7860.77 7886.03 Taiwan Weighted Pr 10101.95 10108.49 Cross-Border DJ Global Titans ($) 274.66 274.69
Australia All Ordinaries 5756.00 5747.70 Czech Republic
PX 1006.15 1012.90 FTSE Italia Mid Cap 40135.95 40092.59 Poland Wig 60344.58 60859.28 Thailand Bangkok SET 1568.57 1568.17 Euro Stoxx 50 (Eur) 3561.22 3578.95
S&P/ASX 200 5717.90 5707.10 Denmark OMXC Copenahgen 20 987.64 983.05 FTSE MIB 20814.48 20783.82 Portugal PSI 20 5279.80 5226.48 Turkey BIST 100 97725.95 97533.28 Euronext 100 ID 1022.64 1026.45
S&P/ASX 200 Res 3380.20 3367.70 Egypt EGX 30 13239.16 13207.94 Japan 2nd Section 5971.39 5964.36 PSI General 2908.83 2884.38 UAE Abu Dhabi General Index 4501.76 4492.92 FTSE 4Good Global ($) 6081.22 6076.46
Austria ATX 3160.27 3209.58 Estonia OMX Tallinn 1116.20 1116.80 Nikkei 225 19677.85 19682.57 Romania BET Index 8688.50 8673.50 UK FT 30 3367.10 3367.40 FTSE All World 306.71 306.90
Belgium BEL 20 3890.84 3893.47 Finland OMX Helsinki General 9711.88 9739.58 S&P Topix 150 1273.55 1271.62 Russia Micex Index 1932.91 1940.77 FTSE 100 7526.51 7547.63 FTSE E300 1533.66 1536.99
BEL Mid 6719.66 6703.98 France CAC 40 5305.94 5332.47 Topix 1572.67 1570.21 RTX 1074.81 1085.75 FTSE 4Good UK 6682.46 6693.63 FTSE Eurotop 100 3007.72 3016.81
Brazil Bovespa 64098.01 63760.94 SBF 120 4228.62 4245.47 Jordan Amman SE 2160.39 2155.26 Saudi-Arabia TADAWUL All Share Index 6870.62 6821.71 FTSE All Share 4119.58 4130.15 FTSE Global 100 ($) 1507.08 1507.77
Canada S&P/TSX 60 907.57 Germany
909.58 M-DAX 25229.32 25282.30 Kenya NSE 20 3438.17 3438.20 Singapore FTSE Straits Times 3204.79 3214.55 FTSE techMARK 100 4653.18 4673.33 FTSE Gold Min ($) 1506.40 1512.73
S&P/TSX Comp 15373.36 15421.91 TecDAX 2284.48 2275.91 Kuwait KSX Market Index 6726.87 6662.89 Slovakia SAX 304.13 307.54 USA DJ Composite 7283.92 7288.05 FTSE Latibex Top (Eur) 3976.10 3965.80
S&P/TSX Div Met & Min 701.59 708.06 XETRA Dax 12598.68 12628.95 Latvia OMX Riga 855.16 848.12 Slovenia SBI TOP 782.22 785.95 DJ Industrial 21038.50 21080.28 FTSE Multinationals ($) 1762.11 1762.36
Chile IGPA Gen 24558.07 24529.23
Greece Athens Gen 776.02 777.19 Lithuania OMX Vilnius 589.05 584.89 South Africa FTSE/JSE All Share 54158.04 53944.22 DJ Transport 9175.41 9176.20 FTSE World ($) 542.93 543.26
China FTSE A200 9019.42 9028.96 FTSE/ASE 20 2064.22 2068.21 Luxembourg LuxX 1745.71 1744.70 FTSE/JSE Res 20 31489.10 31253.22 DJ Utilities 722.69 720.22 FTSEurofirst 100 (Eur) 4338.65 4354.88
FTSE B35 9000.71 8988.96
Hong Kong Hang Seng 25701.63 25639.27 Malaysia FTSE Bursa KLCI 1765.34 1764.89 FTSE/JSE Top 40 47699.35 47533.50 Nasdaq 100 5794.36 5788.36 FTSEurofirst 80 (Eur) 4895.54 4915.56
Shanghai A 3257.06 3254.35 HS China Enterprise 10619.34 10579.67 Mexico IPC 49379.49 49450.48 South Korea Kospi 2343.68 2352.97 Nasdaq Cmp 6203.71 6210.19 MSCI ACWI Fr ($) 464.29 464.50
Shanghai B 320.83 320.37 HSCC Red Chip 4078.50 4056.22 Morocco MASI 11536.13 11534.46 Kospi 200 304.59 306.52 NYSE Comp 11603.81 11631.87 MSCI All World ($) 1911.70 1912.21
Shanghai Comp 3110.06 3107.46
Hungary Bux 34321.14 34138.11 Netherlands AEX 525.71 527.73 Spain IBEX 35 10876.90 10884.00 S&P 500 2412.83 2415.82 MSCI Europe (Eur) 1598.24 1600.03
Shenzhen A 1893.24 1895.13
India BSE Sensex 31159.40 31109.28 AEX All Share 800.11 802.22 Sri Lanka CSE All Share 6655.25 6679.46 Wilshire 5000 25057.00 25107.11 MSCI Pacific ($) 2533.33 2536.54
Shenzhen B 1086.47 1084.98 Nifty 500 8328.95 8299.50 New Zealand NZX 50 7411.95 7412.74 Sweden OMX Stockholm 30 1639.74 1631.91 Venezuela IBC 73959.10 72689.66 S&P Euro (Eur) 1633.09 1637.86
Colombia COLCAP 1448.93 1448.93
Indonesia Jakarta Comp 5712.33 5716.82 Nigeria SE All Share 29064.52 28467.61 OMX Stockholm AS 588.27 585.10 Vietnam VNI 738.21 746.25 S&P Europe 350 (Eur) 1578.15 1581.65
Croatia CROBEX 1854.08 1853.42
Ireland ISEQ Overall 6995.83 6972.30 Norway Oslo All Share 788.92 789.60 Switzerland SMI Index 9007.54 9031.96 S&P Global 1200 ($) 2128.40 2129.58
Israel Tel Aviv 100 12.96 12.97 Pakistan KSE 100 51453.16 52138.90 Stoxx 50 (Eur) 3220.57 3231.19
(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.
CURRENCIES
DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND
Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's
May 30 Currency Mid Change Mid Change Mid Change May 30 Currency Mid Change Mid Change Mid Change May 30 Currency Mid Change Mid Change Mid Change May 30 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 16.0875 0.0975 17.9819 0.1098 20.6903 0.1558 Indonesia Indonesian Rupiah 13322.5000 0.5000 14891.3009 1.2195 17134.1726 25.9425 Poland Polish Zloty 3.7365 -0.0073 4.1764 -0.0080 4.8055 -0.0023 ..Three Month 0.7779 -0.0011 0.8689 -0.0012 - -
Australia Australian Dollar 1.3412 -0.0024 1.4991 -0.0026 1.7249 -0.0006 Israel Israeli Shekel 3.5435 -0.0181 3.9608 -0.0201 4.5573 -0.0166 Romania Romanian Leu 4.0896 0.0046 4.5712 0.0053 5.2597 0.0136 ..One Year 0.7791 -0.0011 0.8684 -0.0012 - -
Bahrain Bahrainin Dinar 0.3772 0.0000 0.4216 0.0000 0.4851 0.0007 Japan Japanese Yen 110.9800 -0.3100 124.0485 -0.3409 142.7322 -0.1873 Russia Russian Ruble 56.6313 0.1512 63.2999 0.1719 72.8339 0.3018 United States United States Dollar - - 1.1178 0.0000 1.2861 0.0019
Bolivia Bolivian Boliviano 6.9100 - 7.7237 0.0003 8.8870 0.0131 ..One Month 110.9798 -0.3103 124.0485 -0.3409 142.7322 -0.1874 Saudi Arabia Saudi Riyal 3.7504 - 4.1920 0.0002 4.8234 0.0071 ..One Month - - 1.1176 -0.1665 1.2862 0.0019
Brazil Brazilian Real 3.2672 -0.0032 3.6519 -0.0034 4.2020 0.0021 ..Three Month 110.9795 -0.3109 124.0486 -0.3408 142.7320 -0.1877 Singapore Singapore Dollar 1.3851 -0.0003 1.5482 -0.0003 1.7814 0.0022 ..Three Month - - 1.1172 -0.1665 1.2865 0.0019
Canada Canadian Dollar 1.3467 0.0028 1.5052 0.0032 1.7319 0.0062 ..One Year 110.9780 -0.3141 124.0487 -0.3405 142.7322 -0.1884 South Africa South African Rand 13.1238 0.1438 14.6691 0.1613 16.8786 0.2095 ..One Year - - 1.1155 -0.1665 1.2876 0.0019
Chile Chilean Peso 675.7300 1.7800 755.3010 2.0233 869.0615 3.5694 Kenya Kenyan Shilling 103.4100 0.0600 115.5871 0.0722 132.9964 0.2735 South Korea South Korean Won 1125.2000 3.5000 1257.6987 3.9682 1447.1282 6.6319 Venezuela Venezuelan Bolivar Fuerte 10.1764 0.0215 11.3747 0.0245 13.0879 0.0469
China Chinese Yuan 6.8610 - 7.6689 0.0003 8.8240 0.0130 Kuwait Kuwaiti Dinar 0.3037 -0.0001 0.3394 0.0000 0.3905 0.0005 Sweden Swedish Krona 8.7399 0.0437 9.7691 0.0493 11.2405 0.0727 Vietnam Vietnamese Dong 22711.0000 -30.0000 25385.3496 -32.4556 29208.8491 4.6063
Colombia Colombian Peso 2918.3850 6.8850 3262.0414 7.8415 3753.3578 14.3859 Malaysia Malaysian Ringgit 4.2825 0.0065 4.7868 0.0075 5.5078 0.0165 Switzerland Swiss Franc 0.9753 -0.0009 1.0901 -0.0010 1.2543 0.0006 European Union Euro 0.8947 0.0000 - - 1.1506 0.0016
Costa Rica Costa Rican Colon 576.5650 -4.0900 644.4587 -4.5426 741.5246 -4.1573 Mexico Mexican Peson 18.6605 0.1472 20.8579 0.1655 23.9994 0.2245 Taiwan New Taiwan Dollar 30.1050 - 33.6500 0.0015 38.7183 0.0572 ..One Month 0.8945 -0.0001 - - 1.1506 0.0016
Czech Republic Czech Koruna 23.6708 -0.0203 26.4582 -0.0215 30.4432 0.0189 New Zealand New Zealand Dollar 1.4111 -0.0022 1.5773 -0.0024 1.8149 -0.0001 Thailand Thai Baht 34.1300 -0.0005 38.1490 0.0011 43.8948 0.0642 ..Three Month 0.8941 0.0000 - - 1.1504 0.0017
Denmark Danish Krone 6.6554 -0.0006 7.4391 -0.0003 8.5596 0.0119 Nigeria Nigerian Naira 314.7500 - 351.8136 0.0157 404.8023 0.5978 Tunisia Tunisian Dinar 2.4318 -0.0021 2.7182 -0.0022 3.1276 0.0020 ..One Year 0.8924 0.0000 - - 1.1499 0.0017
Egypt Egyptian Pound 18.0005 -0.0840 20.1202 -0.0930 23.1506 -0.0737 Norway Norwegian Krone 8.4460 0.0365 9.4406 0.0413 10.8625 0.0630 Turkey Turkish Lira 3.5510 -0.0282 3.9691 -0.0313 4.5669 -0.0295
Hong Kong Hong Kong Dollar 7.7933 -0.0015 8.7111 -0.0012 10.0231 0.0129 Pakistan Pakistani Rupee 104.8350 - 117.1799 0.0052 134.8291 0.1991 United Arab Emirates UAE Dirham 3.6731 - 4.1056 0.0002 4.7239 0.0070
Hungary Hungarian Forint 275.6565 0.0100 308.1165 0.0250 354.5238 0.5364 Peru Peruvian Nuevo Sol 3.2870 0.0060 3.6741 0.0069 4.2274 0.0139 United Kingdom Pound Sterling 0.7775 -0.0011 0.8691 -0.0012 - -
India Indian Rupee 64.6375 0.1475 72.2489 0.1681 83.1308 0.3122 Philippines Philippine Peso 49.8300 0.0100 55.6978 0.0137 64.0867 0.1075 ..One Month 0.7777 -0.0011 0.8690 -0.0013 - -
Rates are derived from WM Reuters Spot Rates and MorningStar (latest rates at time of production). Some values are rounded. Currency redenominated by 1000. The exchange rates printed in this table are also available at www.FT.com/marketsdata
UK SERIES
FTSE ACTUARIES SHARE INDICES www.ft.com/equities FT 30 INDEX FTSE SECTORS: LEADERS & LAGGARDS FTSE 100 SUMMARY
Produced in conjunction with the Institute and Faculty of Actuaries May 30 May 26 May 25 May 24 May 23 Yr Ago High Low Year to date percentage changes Closing Day's Closing Day's
Strlg Day's Euro Strlg Strlg Year Div P/E X/D Total FT 30 3367.10 3367.40 3359.20 3358.40 3338.30 0.00 3368.80 3060.90 Personal Goods 22.76 FTSE 250 Index 9.60 General Retailers 4.41 FTSE 100 Price Change FTSE 100 Price Change
May 30 chge% Index May 26 May 25 ago yield% Cover ratio adj Return FT 30 Div Yield 1.47 1.47 1.48 1.48 1.49 0.00 3.93 2.74 Electronic & Elec Eq 19.50 Real Est Invest & Se 9.31 Banks 4.38 3I Group PLC 888.50 20.00 London Stock Exchange Group PLC 3442 51.00
FTSE 100 (100) 7526.51 -0.28 6748.96 7547.63 7547.63 6230.79 3.67 0.91 29.96 139.74 6254.77 P/E Ratio net 30.40 30.36 30.11 30.05 29.85 0.00 19.44 14.26 Forestry & Paper 18.85 FTSE SmallCap Index 8.82 Utilities 3.80 Admiral Group PLC 2031 25.00 Marks And Spencer Group PLC 386.90 0.60
FTSE 250 (250) 19991.85 -0.17 17926.52 20024.92 20024.92 17184.73 2.63 1.70 22.39 231.82 14482.81 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 26/06/1940Base Date: 1/7/35 Household Goods & Ho 16.88 Equity Invest Instr 8.63 Construct & Material 3.29 Anglo American PLC 1056 3.50 Mediclinic International PLC 789.50 -26.50
FTSE 250 ex Inv Co (207) 21442.54 -0.11 19227.34 21466.09 21466.09 18682.05 2.67 1.73 21.68 256.03 15849.58 FT 30 hourly changes Consumer Goods 14.26 Health Care 8.46 Real Est Invest & Tr 3.04 Antofagasta PLC 809.50 -15.00 Merlin Entertainments PLC 519.50 1.00
FTSE 350 (350) 4176.71 -0.26 3745.22 4187.61 4187.61 3480.31 3.49 1.01 28.32 72.54 6973.73 8 9 10 11 12 13 14 15 16 High Low Aerospace & Defense 13.45 Chemicals 8.19 Basic Materials 3.00 Ashtead Group PLC 1571 1.00 Micro Focus International PLC 2412 -6.00
FTSE 350 ex Investment Trusts (306) 4142.44 -0.25 3714.49 4152.99 4152.99 3456.64 3.52 1.01 28.25 72.88 3563.05 3367.4 3355.1 3363 3357.9 3357.4 3356.7 3359.1 3365.5 3367.1 3369.5 3346.0 Tobacco 13.10 Pharmace & Biotech 8.02 Leisure Goods 2.44 Associated British Foods PLC 2984 34.00 Mondi PLC 2019 8.00
FTSE 350 Higher Yield (121) 3882.81 -0.23 3481.68 3891.63 3891.63 3174.89 4.74 0.74 28.61 91.83 6785.45 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Industrial Eng 12.82 Nonlife Insurance 7.68 Mining 1.80 Astrazeneca PLC 5215 -12.00 Morrison (Wm) Supermarkets PLC 247.60 0.20
FTSE 350 Lower Yield (229) 4070.85 -0.30 3650.30 4083.10 4083.10 3458.13 2.01 1.78 27.98 40.23 4449.88 Software & Comp Serv 12.42 Automobiles & Parts 6.57 Telecommunications 1.18 Aviva PLC 524.50 -2.00 National Grid PLC 1089 -2.00
FTSE SmallCap (277) 5653.93 -0.13 5069.83 5661.48 5661.48 4596.01 2.69 1.21 30.58 61.66 8074.11 Financial Services 12.37 Financials 6.17 Media 0.20
FTSE SmallCap ex Inv Co (146) 5035.97 -0.15 4515.72 5043.67 5043.67 4179.77 2.81 1.54 23.09 54.02 7554.64 FX: EFFECTIVE INDICES Health Care Eq & Srv 12.10 Gas Water & Multi 5.85 Food & Drug Retailer -2.25
Babcock International Group PLC 937.00 -4.50 Next PLC 4380 -4.00
Bae Systems PLC 665.00 -0.50 Old Mutual PLC 191.30 -5.30
FTSE All-Share (627) 4119.58 -0.26 3694.00 4130.15 4130.15 3429.77 3.46 1.02 28.39 70.58 6954.51 Travel & Leisure 10.53 FTSE All{HY-}Share Index 5.54 Electricity -3.69
May 26 May 25 Mnth Ago May 30 May 26 Mnth Ago Barclays PLC 209.20 -2.45 Paddy Power Betfair PLC 8095 -220.00
FTSE All-Share ex Inv Co (452) 4065.23 -0.25 3645.26 4075.50 4075.50 3391.94 3.51 1.01 28.13 70.97 3553.51 Support Services 10.37 Life Insurance 5.39 Oil Equipment & Serv -5.50 Barratt Developments PLC 601.50 0.50 Pearson PLC 700.00 1.00
FTSE All-Share ex Multinationals (567) 1249.68 -0.25 928.76 1252.82 1252.82 1157.49 2.96 1.29 26.25 14.88 2226.25 Australia 92.58 92.83 94.18 Sweden 77.27 77.10 77.71 Technology 10.09 NON FINANCIALS Index 5.32 Industrial Metals & -5.76 Bhp Billiton PLC 1202.5 -2.50 Persimmon PLC 2453 10.00
FTSE Fledgling (94) 9904.40 0.17 8881.20 9887.69 9887.69 7665.31 2.50 1.79 22.37 103.30 18496.28 Canada 87.19 87.23 86.38 Switzerland 160.78 160.65 160.28 Industrials 9.99 Food Producers 5.08 Oil & Gas -7.02 BP PLC 472.10 -2.45 Provident Financial PLC 3057 -34.00
FTSE Fledgling ex Inv Co (45) 13829.86 0.53 12401.12 13757.25 13757.25 10401.72 2.87 2.90 11.99 152.50 25190.53 Denmark 108.75 108.72 107.95 UK 77.25 78.10 78.57 Beverages 9.91 Industrial Transport 5.00 Oil & Gas Producers -7.07 British American Tobacco PLC 5501 -90.00 Prudential PLC 1740 -9.00
FTSE All-Small (371) 3929.73 -0.12 3523.75 3934.37 3934.37 3186.25 2.68 1.24 30.02 42.76 7203.63 Japan 138.60 137.59 140.14 USA 103.21 103.18 104.18 Mobile Telecomms 9.90 FTSE 100 Index 4.59 Tech Hardware & Eq -9.13 British Land Company PLC 636.50 5.00 Randgold Resources LD 7165 -35.00
FTSE All-Small ex Inv Co Index (191) 3771.08 -0.13 3381.49 3775.84 3775.84 3117.06 2.81 1.60 22.28 40.50 7167.00 New Zealand 117.57 117.46 116.20 Euro 91.25 91.16 89.44 Consumer Services 4.54 Fixed Line Telecomms -13.85 Bt Group PLC 308.85 -4.95 Reckitt Benckiser Group PLC 7926 57.00
FTSE AIM All-Share Index (800) 991.11 -0.03 888.72 991.38 991.38 739.50 1.58 0.74 85.42 5.41 1089.62 Norway 87.80 88.02 87.30
Bunzl PLC 2428 -9.00 Relx PLC 1652 -2.00
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. Burberry Group PLC 1786 8.00 Rentokil Initial PLC 264.10 -0.60
Oil & Gas (16) 8261.64 -0.28 7408.14 8285.25 8285.25 6423.26 6.27 0.40 39.60 259.92 7650.20 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk Carnival PLC 4959 24.00 Rio Tinto PLC 3183 -7.00
Oil & Gas Producers (9) 7930.38 -0.31 7111.11 7955.19 7955.19 6125.99 6.31 0.41 38.17 251.49 7602.31 Centrica PLC 202.70 -0.50 Rolls-Royce Holdings PLC 868.50 -4.50
Oil Equipment Services & Distribution (7)13834.36 0.73 12405.16 13733.68 13733.68 13358.78 4.54 -0.22 -100.57 306.86 10798.78 FTSE GLOBAL EQUITY INDEX SERIES Coca-Cola Hbc AG 2247 -22.00 Royal Bank Of Scotland Group PLC 260.60 -1.00
Basic Materials (28) 5169.67 -0.23 4635.60 5181.44 5181.44 3193.78 2.41 1.09 37.98 90.92 5282.40 Compass Group PLC 1661 18.00 Royal Dutch Shell PLC 2165 -1.50
Chemicals (7) 14377.20 -0.56 12891.91 14457.55 14457.55 11601.96 2.12 1.89 25.03 95.63 12798.98 May 29 No of US $ Day Mth YTD Total
YTD Gr Div May 29 No of US $ Day Mth YTD Total YTD Gr Div Convatec Group PLC 320.00 -5.00 Royal Dutch Shell PLC 2115 -3.00
Forestry & Paper (1) 23730.38 0.40 21278.83 23636.35 23636.35 15820.25 2.39 3.36 12.47 375.43 25886.29 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Crh PLC 2804 14.00 Royal Mail PLC 438.20 -0.70
Industrial Metals & Mining (2) 2444.42 1.75 2191.89 2402.46 2402.46 1104.21 0.53 21.48 8.75 13.01 2144.81 FTSE Global All Cap 7724 525.58 -0.1 1.8 9.7 746.06
10.9 2.3 Oil & Gas Producers 108 329.81 0.1 0.1 -6.1 541.24 -4.7 3.8 Croda International PLC 3966 4.00 Rsa Insurance Group PLC 627.50 7.50
Mining (18) 14288.79 -0.24 12812.64 14323.76 14323.76 8489.78 2.47 0.84 48.25 273.28 7648.62 FTSE Global Large Cap 1442 462.86 0.0 2.1 10.0 673.89
11.3 2.5 Oil Equipment & Services 28 313.27 0.0 0.0 -10.4 454.83 -9.5 3.2 Dcc PLC 7345 55.00 Sage Group PLC 717.00 3.50
FTSE Global Mid Cap 1644 708.51 -0.1 1.5 10.0 954.53
11.0 2.0 Basic Materials 259 457.52 -0.1 -0.1 8.4 697.26 9.9 2.4 Diageo PLC 2323 -14.00 Sainsbury (J) PLC 279.70 -2.00
Industrials (112) 5486.38 -0.09 4919.59 5491.36 5491.36 4437.79 2.23 0.84 53.24 57.73 5656.41
Construction & Materials (15) 7154.34 0.54 6415.24 7115.80 7115.80 5468.94 2.14 0.39 120.97 101.80 7601.00 FTSE Global Small Cap 4638 739.34 -0.1 0.6 7.6 964.18
8.4 1.9 Chemicals 123 697.36 0.1 0.1 10.6 1068.27 12.1 2.5 Direct Line Insurance Group PLC 348.40 3.00 Schroders PLC 3168 3.00
Aerospace & Defense (9) 5615.08 -0.30 5034.99 5632.24 5632.24 4156.86 2.13 -2.18 -21.48 63.69 6030.30 FTSE All-World 3086 306.90 -0.1 2.0 10.0 460.16
11.3 2.4 Forestry & Paper 15 267.41 0.0 0.0 12.3 454.88 14.8 2.9 Easyjet PLC 1400 14.00 Scottish Mortgage Investment Trust PLC 398.80 -1.20
General Industrials (5) 4869.87 0.36 4366.77 4852.59 4852.59 3795.68 2.70 1.20 30.95 56.24 5534.15 FTSE World 2543 543.26 -0.1 1.9 9.8 1093.90
11.1 2.4 Industrial Metals & Mining 68 375.99 -0.6 -0.6 3.8 569.44 4.7 2.2 Experian PLC 1615 -26.00 Severn Trent PLC 2534 -
Electronic & Electrical Equipment (10) 7612.28 1.00 6825.87 7537.26 7537.26 5450.15 1.66 1.91 31.57 53.21 6939.24 FTSE Global All Cap ex UNITED KINGDOM In 7396 544.29 -0.1 1.7 9.7 760.90
10.8 2.3 Mining 53 538.25 -0.2 -0.2 4.9 817.84 6.6 2.3 Fresnillo PLC 1585 4.00 Shire PLC 4503 -148.50
Industrial Engineering (12) 12852.11 -0.67 11524.38 12939.36 12939.36 8613.79 2.08 1.41 34.08 171.69 15695.72 FTSE Global All Cap ex USA 5827 476.62 -0.1 2.6 12.2 724.24
13.9 2.8 Industrials 547 369.32 -0.1 -0.1 11.5 531.02 12.6 2.1 Gkn PLC 352.70 -1.80 Sky PLC 997.00 -
Industrial Transportation (7) 5078.75 -0.14 4554.08 5086.00 5086.00 4525.41 3.84 1.25 20.86 52.62 4508.57 FTSE Global All Cap ex JAPAN 6437 538.00 -0.1 1.7 9.9 770.75
11.1 2.4 Construction & Materials 113 517.23 0.0 0.0 12.3 777.50 13.6 2.0 Glaxosmithkline PLC 1673 29.50 Smith & Nephew PLC 1350 -1.00
Support Services (54) 7699.27 -0.26 6903.87 7719.03 7719.03 6713.14 2.16 1.81 25.59 69.69 7990.03 FTSE Global All Cap ex Eurozone 7075 540.99 0.0 1.6 8.9 753.12
10.0 2.3 Aerospace & Defense 26 653.65 0.0 0.0 15.7 931.19 16.8 2.0 Glencore PLC 292.00 -0.50 Smiths Group PLC 1590 8.00
FTSE Developed 2102 492.96 0.0 1.9 9.6 705.83
10.9 2.4 General Industrials 57 245.63 0.1 0.1 4.4 381.16 5.6 2.5 Hammerson PLC 584.00 3.00 Smurfit Kappa Group PLC 2182 4.00
Consumer Goods (38) 22896.14 -0.59 20530.78 23032.67 23032.67 19132.40 2.78 1.84 19.59 339.50 16893.48
FTSE Developed All Cap 5667 517.94 0.0 1.8 9.3 732.69
10.6 2.3 Electronic & Electrical Equipment 71 402.96 -0.1 -0.1 17.2 530.47 18.0 1.6 Hargreaves Lansdown PLC 1397 7.00 Sse PLC 1515 -4.00
Automobiles & Parts (1) 8288.61 -0.51 7432.33 8330.91 8330.91 6460.28 2.51 1.89 21.04 138.65 7989.57
FTSE Developed Large Cap 917 454.81 0.0 2.0 9.6 661.13
10.9 2.5 Industrial Engineering 102 721.96 -0.1 -0.1 14.6 1024.80 16.0 2.0 Hikma Pharmaceuticals PLC 1675 -17.00 St. James's Place PLC 1183 11.00
Beverages (5) 18692.64 -0.61 16761.54 18806.66 18806.66 15800.89 2.54 1.53 25.68 175.38 13167.02
FTSE Developed Europe Large Cap 227 362.42 -0.1 3.8 13.5 606.56
16.1 3.3 Industrial Transportation 99 627.16 -0.1 -0.1 11.4 901.85 12.6 2.2 HSBC Holdings PLC 675.20 0.20 Standard Chartered PLC 726.50 -7.00
Food Producers (8) 8635.78 0.76 7743.63 8570.33 8570.33 8304.79 1.88 2.05 25.95 9.11 7392.49
FTSE Developed Europe Mid Cap 314 580.37 -0.1 3.5 17.8 869.48
19.8 2.6 Support Services 79 323.25 -0.1 -0.1 9.5 444.64 10.5 1.8 Imperial Brands PLC 3607.5 -73.00 Standard Life PLC 384.90 1.00
Household Goods & Home Construction (15)16003.91 0.48 14350.57 15927.76 15927.76 14402.51 2.33 2.52 17.02 212.12 11295.36
FTSE Dev Europe Small Cap 709 822.65 -0.1 3.4 18.6 1193.07
20.3 2.4 Consumer Goods 430 476.39 -0.1 -0.1 13.9 703.19 15.3 2.4 Informa PLC 669.50 -19.00 Taylor Wimpey PLC 201.30 1.60
Leisure Goods (1) 5672.01 -1.62 5086.04 5765.41 5765.41 5372.88 3.82 1.34 19.60 104.95 5118.55
FTSE North America Large Cap 295 516.70 0.0 1.4 8.0 702.07
9.0 2.1 Automobiles & Parts 105 385.59 -0.1 -0.1 4.8 550.68 6.3 2.7 Intercontinental Hotels Group PLC 4346 -11.00 Tesco PLC 185.35 -1.45
Personal Goods (6) 32654.83 0.05 29281.31 32638.74 32638.74 23571.79 2.54 3.04 12.97 376.77 22020.38
FTSE North America Mid Cap 387 761.51 0.0 0.4 6.1 963.28
6.7 1.7 Beverages 45 630.18 -0.1 -0.1 14.2 941.24 15.2 2.5 International Consolidated Airlines Group S.A. 605.50 -8.50 Tui AG 1192 23.00
Tobacco (2) 60289.88 -1.70 54061.44 61335.40 61335.40 50273.72 3.41 1.24 23.77 1304.93 39009.45
FTSE North America Small Cap 1433 774.79 0.0 -0.3 3.8 952.26
4.4 1.6 Food Producers 107 622.32 -0.2 -0.2 9.4 945.62 11.0 2.2 Intertek Group PLC 4250 -45.00 Unilever PLC 4310 -0.50
Health Care (21) 10691.06 -0.10 9586.59 10702.05 10702.05 9173.03 3.28 0.72 42.45 208.49 8255.02
FTSE North America 682 345.18 0.0 1.2 7.7 480.05
8.6 2.0 Household Goods & Home Construction 49 453.55 0.1 0.1 12.2 664.66 13.6 2.3 Intu Properties PLC 270.20 0.50 United Utilities Group PLC 1041 6.00
Health Care Equipment & Services (9) 8454.27 -0.69 7580.88 8512.75 8512.75 7223.05 1.27 2.43 32.41 60.36 7332.41
FTSE Developed ex North America 1420 252.07 -0.1 3.0 12.7 412.51
14.6 2.9 Leisure Goods 31 212.03 -0.3 -0.3 32.5 278.59 33.5 1.3 Itv PLC 198.90 -1.30 Vodafone Group PLC 229.15 -1.05
Pharmaceuticals & Biotechnology (12)14381.68 -0.03 12895.94 14386.26 14386.26 12356.49 3.53 0.64 44.09 300.97 9901.11
FTSE Japan Large Cap 180 349.06 0.0 2.4 2.1 Personal Goods
7.1 451.24
8.2 81 685.74 0.0 0.0 18.6 957.97 19.7 1.9 Johnson Matthey PLC 3137 -38.00 Whitbread PLC 4229 -13.00
Consumer Services (94) 5203.57 -0.12 4666.00 5209.60 5209.60 4750.21 2.53 2.00 19.79 62.50 4882.48 FTSE Japan Mid Cap 313 570.83 0.1 2.9 10.5 708.65
11.4 1.7 Tobacco 12 1523.45 0.1 0.1 20.2 3127.60 21.7 3.3
Food & Drug Retailers (7) 3201.21 -0.63 2870.50 3221.65 3221.65 2840.33 1.30 2.26 33.98 22.81 3742.22 Kingfisher PLC 324.00 -4.30 Wolseley PLC 5040 52.00
FTSE Global wi JAPAN Small Cap 794 621.62 -0.1 3.0 11.4 798.94
12.5 1.9 Health Care 181 469.36 -0.1 -0.1 11.0 675.32 12.3 2.0 Land Securities Group PLC 1074 -1.00 Worldpay Group PLC 315.50 -2.00
General Retailers (30) 2615.26 -0.42 2345.08 2626.34 2626.34 2733.11 2.99 2.00 16.74 21.52 2976.73
FTSE Japan 493 147.95 0.0 2.5 2.0 Health Care Equipment & Services
7.8 214.64
8.9 68 798.60 -0.1 -0.1 16.1 929.33 16.6 1.0 Legal & General Group PLC 251.50 1.20 Wpp PLC 1751 14.00
Media (21) 8073.35 -0.05 7239.30 8077.04 8077.04 7390.16 2.87 1.82 19.13 95.38 4971.60
FTSE Asia Pacific Large Cap ex Japan 548 656.17 -0.2 2.1 15.8 1023.59
16.8 2.8 Pharmaceuticals & Biotechnology 113 333.41 -0.1 -0.1 9.0 501.69 10.5 2.5 Lloyds Banking Group PLC 71.12 -0.62
Travel & Leisure (36) 9682.11 0.10 8681.87 9672.05 9672.05 8339.00 2.39 2.14 19.56 146.27 9196.24
FTSE Asia Pacific Mid Cap ex Japan 412 874.88 -0.3 1.3 15.0 1308.02
15.8 2.6 Consumer Services 383 441.28 0.0 0.0 11.8 588.09 12.7 1.6
Telecommunications (6) 3503.14 -0.84 3141.24 3532.78 3532.78 3940.20 5.05 -0.01 -1337.4 4.42 3857.01 FTSE Asia Pacific Small Cap ex Japan 1449 541.31 -0.5 0.0 11.3 796.77
12.1 2.6 Food & Drug Retailers 55 292.69 0.1 0.1 3.5 407.16 4.5 2.0
8
Fixed Line Telecommunications (4) 3632.33 -1.60 3257.08 3691.51 3691.51 5117.92 4.82 1.20 17.35 0.00 3274.79
FTSE Asia Pacific Ex Japan
FTSE Emerging All Cap
960 518.82
2057 715.15
-0.2
-0.2
2.0
2.0
15.7 859.64
16.7 2.8 General Retailers
14.2 1058.89
15.1 2.8 Media
120 611.59
79 336.60
0.0
-0.1
0.0
-0.1
12.3 793.31
10.7 449.65
13.1
11.4
1.5
1.6
UK STOCK MARKET TRADING DATA
Mobile Telecommunications (2) 5153.49 -0.50 4621.10 5179.55 5179.55 5159.70 5.15 -0.51 -38.27 9.33 5099.21 FTSE Emerging Large Cap 525 677.81 -0.2 2.8 14.5 1010.39
15.4 2.8 Travel & Leisure 129 447.17 0.1 0.1 17.5 602.97 18.5 1.7 May 30 May 26 May 25 May 24 May 23 Yr Ago
Utilities (7) 9134.18 -0.11 8190.54 9144.69 9144.69 8694.21 4.63 1.64 13.20 83.90 10293.69 FTSE Emerging Mid Cap 459 893.66 -0.5 -0.8 12.4 1315.76
13.5 2.8 Telecommunication 94 164.83 -0.1 -0.1 2.3 306.05 3.8 4.2 SEAQ Bargains 5546.00 5202.00 5202.00 5202.00 5058.00 6262.00
Electricity (2) 8940.63 -0.15 8016.99 8953.85 8953.85 8952.32 5.50 2.02 9.02 149.05 12774.83 FTSE Emerging Small Cap 1073 737.63 -0.4 -0.4 13.8 1049.31
14.6 2.6 Fixed Line Telecommuniations 43 133.83 -0.1 -0.1 -4.8 273.86 -3.0 4.8 Order Book Turnover (m) 344.31 193.78 193.78 193.78 139.89 454.55
Gas Water & Multiutilities (5) 8680.59 -0.11 7783.81 8689.85 8689.85 8155.86 4.41 1.51 14.98 63.82 9787.93 FTSE Emerging Europe 114 354.58 0.5 0.0 5.5 546.67
6.3 4.0 Mobile Telecommunications 51 180.79 -0.2 -0.2 13.1 301.02 14.0 3.3 Order Book Bargains 1057471.00 1020304.00 1020304.00 1020304.00 950568.00 976389.00
Financials (289) 5101.42 -0.18 4574.40 5110.78 5110.78 4212.94 3.54 1.04 27.01 101.66 4739.32 FTSE Latin America All Cap 230 843.39 -0.8 -1.4 9.8 1297.53
11.3 2.8 Utilities 167 273.75 -0.1 -0.1 11.0 529.49 12.7 3.7 Order Book Shares Traded (m) 1498.00 1702.00 1702.00 1702.00 1275.00 1511.00
Banks (12) 4270.46 -0.39 3829.29 4287.29 4287.29 3299.52 4.13 0.62 38.77 107.82 3175.75 FTSE Middle East and Africa All Cap 242 716.73 -0.9 3.4 9.0 1116.26
10.6 3.0 Electricity 109 299.98 -0.1 -0.1 10.3 573.45 11.9 3.7 Total Equity Turnover (m) 10212.87 8690.30 8690.30 8690.30 8386.30 9870.73
Nonlife Insurance (10) 3443.19 0.90 3087.48 3412.63 3412.63 2952.79 3.13 1.69 18.93 60.87 6079.06 FTSE Global wi UNITED KINGDOM All Cap In 328 343.86 0.4 3.5 3.5 Gas Water & Multiutilities
10.5 574.86
12.5 58 288.37 0.0 0.0 12.4 573.01 14.2 3.6 Total Mkt Bargains 1184824.00 1152315.00 1152315.00 1152315.00 1060320.00 1108477.00
Life Insurance/Assurance (10) 8426.38 -0.41 7555.86 8461.32 8461.32 7181.42 3.68 1.26 21.61 210.60 8277.35 FTSE Global wi USA All Cap 1897 594.38 0.0 1.1 7.6 783.97
8.4 1.9 Financials 698 227.69 -0.1 -0.1 6.7 371.00 8.3 2.9 Total Shares Traded (m) 4153.00 4794.00 4794.00 4794.00 3976.00 4546.00
Index- Real Estate Investment & Services (20) 2753.16 -0.46 2468.73 2765.92 2765.92 2774.32 2.48 1.86 21.64 31.00 7354.75 FTSE Europe All Cap 1441 424.22 -0.1 3.6 14.4 685.10
16.8 3.1 Banks 248 203.76 -0.2 -0.2 5.8 356.47 7.5 3.3 Excluding intra-market and overseas turnover. *UK only total at 6pm. UK plus intra-market turnover. (u) Unavaliable.
Real Estate Investment Trusts (31) 2753.97 0.49 2469.46 2740.49 2740.49 2849.08 3.53 1.19 23.72 44.78 3431.90 FTSE Eurozone All Cap 649 415.18 -0.2 3.9 17.3 676.21
19.5 2.9 Nonlife Insurance 68 246.05 0.0 0.0 6.1 357.30 7.9 2.3 (c) Market closed.
General Financial (31) 9104.84 0.41 8164.23 9067.41 9067.41 7700.46 3.17 2.17 14.52 108.34 10411.93 FTSE RAFI All World 3000 3043 6401.09 -0.1 1.4 7.2 8432.44
8.7 3.0 Life Insurance 52 215.09 0.0 0.0 7.4 342.89 9.0 3.0
Equity Investment Instruments (175) 9629.60 -0.34 8634.78 9662.48 9662.48 7615.74 2.37 1.17 36.12 93.60 5258.11 FTSE RAFI US 1000 1001 10428.27 0.0 0.0 2.8 13640.85
3.7 2.4 Financial Services 147 260.65 0.0 0.0 8.2 358.19 9.1 1.9
Non Financials (338) 4875.18 -0.28 4371.53 4888.90 4888.90 4073.37 3.43 1.01 28.90 78.79 7199.22 FTSE EDHEC-Risk Efficient All-World 3086 370.06 0.0 2.0 10.6 514.02
11.6 2.1 Technology 182 234.57 -0.1 -0.1 20.8 286.94 21.7 1.5 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Technology (16) 2077.18 0.32 1862.59 2070.60 2070.60 1431.67 2.17 1.30 35.55 26.90 2673.41 FTSE EDHEC-Risk Efficient Developed Europe 541 313.48 -0.2 3.6 17.1 477.83
19.0 2.5 Software & Computer Services 89 402.86 -0.1 -0.1 21.1 469.95 21.7 0.9 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Software & Computer Services (12) 2375.87 0.35 2130.42 2367.49 2367.49 1912.65 2.09 1.48 32.46 32.21 3230.73 Oil & Gas 145 350.77 0.1 -0.7 -6.5 564.09
-5.2 3.7 Technology Hardware & Equipment 93 177.46 0.0 0.0 20.6 225.62 21.6 2.1 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Technology Hardware & Equipment (4) 1911.41 -0.06 1713.95 1912.61 1912.61 1518.42 2.97 0.00-7364.55 12.16 2240.87 Alternative Energy 9 111.24 -0.1 -0.1 21.1 149.82 21.4 1.6 liable for any loss arising from the reliance on or use of the listed information.
Real Estate Investment & Services 107 322.95 0.7 0.7 17.0 536.99 18.6 2.5 For all queries e-mail ft.reader.enquiries@morningstar.com
Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/
FTSE 100 7508.96 7508.56 7524.33 7517.92 7514.99 7511.05 7522.55 7527.71 7529.86 7535.60 7497.17 mid cap) - please see www.ftse.com/geis. The trade names Fundamental Index and RAFI are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC
(US Patent Nos. 7,620,577; 7,747,502; 7,778,905; 7,792,719; Patent Pending Publ. Nos. US-2006-0149645-A1, US-2007-0055598-A1, US-2008-0288416-A1, US-2010- 0063942-A1, WO 2005/076812, WO 2007/078399 A2,
Data provided by Morningstar | www.morningstar.co.uk
FTSE 250 20015.48 19987.60 20016.68 19980.11 19967.35 19959.17 19968.53 19987.54 19996.07 20020.41 19944.26
FTSE SmallCap 5662.88 5658.63 5662.20 5660.43 5660.88 5665.61 5661.53 5663.75 5663.33 5669.46 5653.93 WO 2008/118372, EPN 1733352, and HK1099110). EDHEC is a trade mark of EDHEC Business School As of January 2nd 2006, FTSE is basing its sector indices on the Industrial Classification Benchmark - please see
FTSE All-Share 4112.97 4111.72 4119.70 4115.60 4113.90 4112.02 4117.26 4120.23 4121.44 4123.65 4105.93 www.ftse.com/icb. For constituent changes and other information about FTSE, please see www.ftse.com. FTSE International Limited. 2013. All Rights reserved. FTSE is a trade mark of the London Stock Exchange
Time of FTSE 100 Day's high:14:56:30 Day's Low08:21:00 FTSE 100 2010/11 High: 7547.63(29/05/2017) Low: 7099.15(31/01/2017) Group companies and is used by FTSE International Limited under licence.
Time of FTSE All-Share Day's high:14:56:00 Day's Low07:23:00 FTSE 100 2010/11 High: 4130.15(29/05/2017) Low: 3858.26(31/01/2017)
Further information is available on http://www.ftse.com FTSE International Limited. 2013. All Rights reserved. FTSE is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. Values are negative.
Figures in m. Earnings shown basic. Figures in light text are for corresponding period year earlier. Placing price. *Intoduction. When issued. Annual report/prospectus available at www.ft.com/ir
For more information on dividend payments visit www.ft.com/marketsdata For a full explanation of all the other symbols please refer to London Share Service notes.
Wednesday 31 May 2017 FINANCIAL TIMES 17
MARKET DATA
FT 500: TOP 20 FT 500: BOTTOM 20 BONDS: HIGH YIELD & EMERGING MARKET BONDS: GLOBAL INVESTMENT GRADE
Close Prev Day Week Month Close Prev Day Week Month Day's Mth's Spread Day's Mth's Spread
price price change change % change change % change % price price change change % change change % change % Red Ratings Bid Bid chge chge vs Red Ratings Bid Bid chge chge vs
Surgutneftegas 31.04 30.99 0.05 0.15 4.14 15.4 11.27 SunPhrmInds 508.00 502.60 5.40 1.07 -132.15 -20.6 -20.87 May 30 date Coupon S* M* F* price yield yield yield US May 30 date Coupon S* M* F* price yield yield yield US
ChUncHK 11.34 11.18 0.16 1.43 0.98 9.5 12.95 ShgPdgBk 12.84 12.93 -0.09 -0.70 -2.20 -14.6 -14.68 High Yield US$ US$
Tesla Mtrs 332.47 325.14 7.33 2.25 28.61 9.4 5.81 Devon Energy 34.56 35.82 -1.26 -3.50 -3.26 -8.6 -12.51 Navient Corporation 03/20 8.00 BB- Ba3 BB 110.09 4.21 0.00 -1.29 2.93 SunTrust Banks, Inc. 01/28 6.00 BBB+ Baa1 A- 111.09 4.72 0.00 -0.02 2.49
NorfolkS 123.77 122.33 1.44 1.18 9.40 8.2 5.39 ValeantPh 16.60 17.24 -0.64 -3.71 -1.36 -7.6 31.23 High Yield Euro FleetBoston Financial Corp. 01/28 6.88 BBB Baa3 A- 120.98 4.43 0.00 -0.15 2.20
Intuit 139.62 138.56 1.06 0.77 10.47 8.1 11.53 Perrigo 68.10 69.95 -1.85 -2.64 -4.97 -6.8 -8.03 Kazkommerts Intl BV 02/17 6.88 B Caa1 B 97.50 - 0.00 0.00 - Citigroup Inc. 01/28 6.63 BBB+ Baa1 A 121.14 4.19 0.00 0.11 1.96
MediaTek 229.50 228.50 1.00 0.44 17.00 8.0 6.74 Alexion 97.90 97.70 0.20 0.20 -6.74 -6.4 -23.51 Nicor Gas Company 02/28 6.58 A Aa3 AA- 117.13 4.59 0.00 -0.07 2.36
ChinaMBank 23.55 23.70 -0.15 -0.63 1.60 7.3 16.58 Unicred 15.85 15.87 -0.02 -0.13 -1.02 -6.0 6.09 Emerging US$ NationsBank Corp. 03/28 6.80 BBB Baa3 A- 121.97 4.28 0.00 -0.29 2.06
China Vanke 20.75 20.35 0.40 1.97 1.37 7.1 5.12 Cred Agr 13.78 13.91 -0.13 -0.90 -0.85 -5.8 0.95 Mexico 09/16 11.40 BBB+ A3 BBB+ 106.80 1.49 0.03 0.01 0.44 United Utilities PLC 08/28 6.88 BBB- Baa1 A- 120.02 4.62 0.00 -0.19 2.40
Charter Comms 338.76 337.44 1.32 0.39 19.97 6.3 -1.86 Deut Bank 16.14 16.43 -0.30 -1.80 -0.99 -5.8 -5.75 Peru 03/19 7.13 BBB+ A3 BBB+ 109.92 1.61 0.00 -0.18 0.33
Peru 03/19 7.13 BBB+ A3 BBB+ 114.01 2.60 0.00 0.20 0.84 Euro
Hunng Pwr 6.17 5.84 0.33 5.65 0.34 5.8 14.90 CanNatRs 38.98 39.80 -0.82 -2.06 -2.30 -5.6 -10.33 AT&T Inc. 12/29 2.60 BBB+ Baa1 A- 104.14 2.22 0.02 0.15 -
ICICI Bk 321.40 314.90 6.50 2.06 17.55 5.8 15.40 KinderM 18.45 19.25 -0.80 -4.16 -1.07 -5.5 -10.45 Brazil 01/20 12.75 BB Ba2 BB 124.48 3.00 0.00 0.41 1.72
Brazil 01/22 12.50 BB Ba2 BB 112.45 9.15 -0.07 -0.23 7.38 AT&T Inc. 12/29 2.60 BBB+ Baa1 A- 104.83 2.15 0.00 0.06 -
Ch Evrbrght 3.68 3.68 0.00 0.00 0.19 5.4 0.82 Generali 13.88 14.06 -0.18 -1.28 -0.79 -5.4 -4.47 Citigroup Inc. 02/30 4.25 BBB Baa3 A- 117.34 2.29 0.02 0.04 -
Hind Unilevr 1072.60 1072.25 0.35 0.03 54.00 5.3 14.72 Halliburton 45.07 45.76 -0.70 -1.52 -2.54 -5.3 -1.74 Poland 03/23 3.00 BBB+ A2 A- 100.95 2.84 -0.02 -0.20 1.07
Colombia 03/23 2.63 BBB Baa2 BBB 97.23 3.18 -0.02 -0.09 1.41 HBOS plc 03/30 4.50 BBB- Baa2 A- 117.08 2.47 0.02 -0.23 -
PngAnBnk 9.15 9.10 0.05 0.55 0.46 5.3 1.78 IntSPaolo 2.55 2.57 -0.02 -0.62 -0.14 -5.2 -4.56
Turkey 03/23 3.25 - Ba1 BB+ 80.65 7.41 0.06 0.27 5.64 Yen
ChMinsheng 7.99 8.09 -0.10 -1.24 0.40 5.3 4.31 Williams Cos 28.95 29.69 -0.74 -2.49 -1.54 -5.1 -5.47
Russia 05/26 4.75 - - BBB- 105.31 4.08 0.00 0.00 1.85 Enagas Transportes, S.A.U. 09/39 3.23 A- Baa2 A- 106.57 2.85 0.00 0.01 -
Softbank 8980.00 8732.00 248.00 2.84 445.00 5.2 6.44 ENI 14.32 14.28 0.04 0.28 -0.67 -4.5 0.35
IndstrlBk 16.50 16.57 -0.07 -0.42 0.81 5.2 7.35 Anadarko 51.21 51.84 -0.64 -1.22 -2.37 -4.4 -10.28 Turkey 03/27 6.00 - Ba1 BB+ 106.82 5.17 0.00 0.03 2.94 Sterling
Ch OSLnd&Inv 23.65 23.30 0.35 1.50 1.10 4.9 4.65 Shire 4503.00 4651.50 -148.50 -3.19 -207.00 -4.4 0.54 Emerging Euro Electricite de France (EDF) 05/28 6.25 A A3 A- 135.06 2.55 -0.01 -0.19 0.32
BOE Tech 1.57 1.57 0.00 0.00 0.07 4.7 2.61 ConocPhil 44.72 45.35 -0.63 -1.39 -2.04 -4.4 -6.67 Brazil 02/15 7.38 BBB- Baa2 BBB 111.75 0.73 0.00 0.00 0.09 HSBC Holdings plc 08/28 2.63 A A1 AA- 101.54 2.47 -0.01 -0.30 0.24
WPP 1751.00 1737.00 14.00 0.81 78.00 4.7 5.96 BkMontrl 91.07 91.51 -0.44 -0.48 -4.06 -4.3 -5.80 Mexico 02/20 5.50 BBB+ A3 BBB+ 113.88 0.35 0.00 -0.07 -0.92 Data provided by SIX Financial Information. US $ denominated bonds NY close; all other London close. *S - Standard & Poors, M -
Mexico 04/23 2.75 BBB+ A3 BBB+ 107.90 1.35 0.02 -0.01 -0.42 Moodys, F - Fitch.
Based on the FT Global 500 companies in local currency Based on the FT Global 500 companies in local currency
Bulgaria 03/28 3.00 BB+ Baa2 BBB- 108.38 2.12 0.02 0.01 -0.11
Data provided by SIX Financial Information & Tullett Prebon Information. US $ denominated bonds NY close; all other
London close. *S - Standard & Poors, M - Moodys, F - Fitch.
INTEREST RATES: OFFICIAL BOND INDICES VOLATILITY INDICES GILTS: UK CASH MARKET
May 30 Rate Current Since Last Mnth Ago Year Ago Day's Month's Year Return Return May 30 Day Chng Prev 52 wk high 52 wk low Red Change in Yield 52 Week Amnt
US Fed Funds 0.50-0.75 14-12-2016 1.00 0.50-0.75 0.25-0.50 Index change change change 1 month 1 year VIX 10.43 0.62 9.81 26.72 9.56 May 30 Price Yield Day Week Month Year High Low m
US Prime 4.00 16-12-2008 3.75 3.50 3.50 Markit IBoxx VXD 10.45 0.85 9.60 23.69 3.59 Tr 8.75pc '17 102.10 0.01 0.00 0.00 -200.00 -97.44 105.16 100.00 11.14
US Discount 0.75 16-12-2015 0.75 1.00 0.75 ABF Pan-Asia unhedged 181.71 0.08 1.06 4.90 0.80 0.64 VXN 13.09 0.83 12.26 27.10 9.75 Tr 5pc '18 103.78 0.10 11.11 25.00 233.33 -66.67 108.38 103.78 35.24
Euro Repo 0.00 10-09-2014 0.05 0.05 0.05 Corporates( ) 343.37 0.24 1.41 4.01 1.59 11.04 VDAX - - - - - Tr 4.5pc '19 107.85 0.07 0.00 16.67 133.33 -84.44 111.97 107.85 36.35
UK Repo 0.25 05-03-2009 0.25 0.50 0.50 Corporates($) 271.45 0.05 0.75 3.11 0.75 3.11 CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility. Tr 4.75pc '20 112.94 0.08 -11.11 -11.11 0.00 -87.88 117.02 112.94 33.31
Japan O'night Call 0.00-0.00 05-10-2010 0.00 0.00-0.10 0.00-0.10 Corporates() 223.44 0.13 0.20 0.98 0.46 2.65 Deutsche Borse. VDAX: DAX Index Options Volatility. Tr 1.5pc '21 104.64 0.22 -8.33 -12.00 -12.00 -75.28 106.04 102.64 32.46
Switzerland Libor Target 0.00-0.25 15-01-2015 0.00-0.75 -1.25--0.25 0-0.25 Eurozone Sov() 231.47 0.24 0.53 -0.52 0.79 -0.59 Tr 4pc '22 117.56 0.29 -14.71 -17.14 -9.38 -68.82 121.31 116.43 37.95
Gilts( ) 325.82 0.23 0.79 2.75 0.92 7.46 BONDS: BENCHMARK GOVERNMENT Tr 5pc '25 132.35 0.71 -6.58 -6.58 -5.33 -45.38 138.11 129.09 35.08
INTEREST RATES: MARKET Global Inflation-Lkd 259.18 0.01 0.65 4.86 1.37 3.84 Red Bid Bid Day chg Wk chg Month Year Tr 1.25pc '27 101.55 1.09 -5.22 -6.03 -3.54 -31.45 138.26 99.31 5.43
Over Change One Three Six One Markit iBoxx Non-Gilts 338.18 0.22 1.18 3.62 1.33 9.60 Date Coupon Price Yield yield yield chg yld chg yld Tr 4.25pc '32 138.52 1.40 -2.78 -4.11 -3.45 -27.84 148.92 131.34 35.44
May 30 (Libor: May 26) night Day Week Month month month month year Overall ($) 236.23 0.05 0.48 2.29 0.48 2.29 Australia 10/19 2.75 102.65 1.62 -0.01 -0.08 -0.13 -0.03 Tr 4.25pc '36 143.62 1.56 -2.50 -3.70 -4.29 -26.42 155.77 133.98 29.76
US$ Libor 0.93000 0.000 0.001 0.001 1.04467 1.20178 1.41378 1.72122 Overall( ) 326.45 0.23 0.91 3.01 1.04 8.08 11/28 2.75 102.15 2.53 -0.01 -0.10 -0.20 0.00 Tr 4.5pc '42 158.85 1.66 -2.35 -3.49 -4.05 -24.89 174.65 145.64 26.64
Euro Libor -0.43000 -0.006 -0.003 0.000 -0.39857 -0.36929 -0.28500 -0.15543 Overall() 227.66 0.19 0.38 -0.16 0.60 0.09 Austria 10/19 0.25 99.98 0.26 0.00 0.00 0.00 0.00 Tr 3.75pc '52 158.57 1.57 -2.48 -3.68 -4.27 -25.94 177.28 140.85 23.59
Libor 0.22375 0.000 -0.001 0.000 0.25263 0.29963 0.44138 0.63813 Treasuries ($) 223.04 0.06 0.33 1.79 0.33 1.79 04/27 0.50 99.26 0.58 0.00 -0.11 -0.03 0.00 Tr 4pc '60 178.41 1.50 -2.60 -3.85 -4.46 -27.18 201.27 155.52 23.21
Swiss Fr Libor 0.000 -0.78540 -0.72960 -0.66180 -0.48960 FTSE Belgium 06/18 0.75 100.87 -0.11 0.00 0.00 0.00 0.00 xd Ex dividend. Closing mid-prices are shown in pounds per 100 nominal of stock. Red yield: Gross redemption yield.
Yen Libor -0.002 -0.01629 -0.01529 0.02300 0.12500 Sterling Corporate () 118.81 0.07 - - 0.96 5.46 06/27 0.80 101.44 0.65 -0.04 -0.12 -0.11 0.00 This table shows the gilts benchmarks & the non-rump undated stocks.
Euro Euribor -0.001 -0.37200 -0.32900 -0.25400 -0.13100 Euro Corporate () 107.41 -0.03 - - 0.13 -0.54 Canada 08/19 0.75 100.00 0.75 0.00 0.02 0.00 0.00
Sterling CDs
US$ CDs
0.000
0.000
0.20000
0.97000
0.28000
1.13000
0.42500
1.31000
Euro Emerging Mkts () 809.47 11.73 - - 1.17 -8.13 06/27 1.00 96.07 1.42 -0.02 -0.09 -0.09 0.00 GILTS: UK FTSE ACTUARIES INDICES
Eurozone Govt Bond 112.26 -0.09 - - 0.32 -3.07 Denmark 11/20 0.25 102.29 -0.41 0.00 0.00 0.00 0.00
Euro CDs 0.000 -0.43500 -0.39500 -0.29500 11/27 0.50 99.33 0.57 -0.02 -0.10 -0.03 0.00 Price Indices Day's Total Return Return
CREDIT INDICES Day's Week's Month's Series Series Fixed Coupon May 30 chg % Return 1 month 1 year Yield
Short 7 Days One Three Six One Index change change change high low Finland 09/19 1.75 100.48 1.54 0.00 0.00 -0.02 0.23
07/28 2.75 115.37 1.45 0.00 0.00 0.00 0.00 1 Up to 5 Years 96.73 0.03 2436.56 0.09 1.61 0.16
May 30 term notice month month month year Markit iTraxx 2 5 - 10 Years 186.85 0.08 3520.77 0.59 4.92 0.68
Euro -0.50 -0.35 -0.50 -0.35 -0.51 -0.36 -0.47 -0.32 -0.37 -0.22 -0.36 -0.11 Crossover 5Y 369.26 -12.07 35.21 40.34 390.04 288.69 France - - - - - - -
3 10 - 15 Years 218.73 0.11 4286.83 0.93 7.44 1.13
Sterling 0.15 0.25 0.15 0.25 0.23 0.33 0.35 0.50 0.47 0.62 Europe 5Y 85.00 -1.98 7.21 7.01 90.43 67.59 11/20 0.25 102.44 -0.44 0.00 0.00 0.00 0.00
4 5 - 15 Years 194.39 0.09 3710.08 0.71 5.71 0.88
Swiss Franc - - - - - - - - - - - - Japan 5Y 70.05 -2.51 2.21 -0.87 93.03 64.22 10/22 2.25 112.98 -0.14 0.00 0.00 0.00 0.00
5 Over 15 Years 346.08 -0.16 5234.32 1.61 12.42 1.59
Canadian Dollar - - - - - - - - - - - - Senior Financials 5Y 111.86 -3.89 10.86 12.50 121.66 80.36 05/27 1.00 102.59 0.73 -0.04 -0.11 -0.09 0.00
7 All stocks 184.65 -0.04 3615.80 0.91 7.09 1.38
US Dollar 0.90 1.00 0.95 1.05 1.00 1.10 1.10 1.20 1.25 1.35 1.50 1.60 Germany 10/19 0.25 102.29 -0.71 0.00 0.00 0.00 0.00
Markit CDX 08/23 2.00 114.03 -0.24 0.00 0.00 0.00 0.00
Japanese Yen -0.20 0.00 -0.20 0.00 -0.40 -0.10 -0.30 0.00 -0.25 0.05 -0.20 0.10 Day's Month Year's Total Return Return
Emerging Markets 5Y 198.09 -3.26 -11.46 -11.68 218.09 197.56 02/27 0.25 99.59 0.29 -0.03 -0.12 -0.04 0.00
Libor rates come from ICE (see www.theice.com) and are fixed at 11am UK time. Other data sources: US $, Euro & CDs: Index Linked May 30 chg % chg % chg % Return 1 month 1 year
Nth Amer High Yld 5Y 328.29 0.17 -17.13 -10.17 353.95 327.35 08/46 2.50 133.68 1.14 -0.02 -0.10 0.03 0.25
Tullett Prebon; SDR, US Discount: IMF; EONIA: ECB; Swiss Libor: SNB; EURONIA, RONIA & SONIA: WMBA. 1 Up to 5 Years 315.24 0.02 -0.12 2.00 2475.72 0.09 3.91
Nth Amer Inv Grade 5Y 63.53 0.28 -4.09 -3.35 69.24 62.53 Greece 04/19 4.75 98.38 5.68 0.10 0.16 -0.13 -1.39
Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. 2 Over 5 years 726.62 -0.53 -0.46 23.78 5409.41 -0.34 24.44
02/27 3.00 84.14 5.98 0.09 0.26 0.07 -1.25 3 5-15 years 485.43 0.10 0.32 11.28 3750.07 0.53 12.46
Ireland 10/19 5.90 115.28 -0.47 0.00 0.00 0.00 0.00 4 Over 15 years 934.83 -0.74 -0.71 28.56 6811.74 -0.62 29.01
05/26 1.00 102.06 0.76 -0.02 -0.09 -0.07 -0.04 5 All stocks 656.45 -0.49 -0.44 21.26 4959.69 -0.31 22.05
COMMODITIES www.ft.com/commodities BONDS: INDEX-LINKED Italy 10/19 0.05 99.80 0.14 0.01 0.05 -0.12 0.00
11/21 0.35 98.48 0.70 0.04 0.08 -0.10 0.00 Yield Indices May 30 May 26 Yr ago May 30 May 26 Yr ago
Energy Price* Change Agricultural & Cattle Futures Price* Change Price Yield Month Value No of
06/27 2.20 100.33 2.18 0.00 0.06 -0.12 0.00 5 Yrs 0.30 - 0.82 20 Yrs 1.69 - 2.18
Crude Oil Jun 49.33 -0.66 Corn Jul 371.25 -2.50 Apr 21 Apr 21 Prev return stock Market stocks
03/47 2.70 89.72 3.27 0.02 0.06 -0.10 0.69 10 Yrs 1.03 - 1.55 45 Yrs 1.52 - 2.05
Brent Crude Oil 51.95 -0.30 Wheat Jul 435.50 -3.25 Can 4.25%' 21 121.46 -0.361 -0.372 0.29 5.18 75355.91 7
Japan 05/19 0.10 100.52 -0.17 0.00 0.00 0.00 0.00 15 Yrs 1.50 - 2.00
RBOB Gasoline Jun 1.61 -0.04 Soybeans Jul 925.00 -1.00 Fr 2.25%' 20 112.37 -1.431 -1.458 0.13 20.31 222459.38 16
03/22 0.10 101.07 -0.12 0.00 0.00 0.00 0.00
Heating Oil Jun 1.58 0.00 Soybeans Meal Jul 302.00 0.70 Swe 0.25%' 22 114.09 -1.848 -1.830 0.17 30.03 229025.37 7
03/27 0.10 100.59 0.04 0.00 -0.01 0.02 0.00 inflation 0% inflation 5%
Natural Gas Jun 3.19 -0.02 Cocoa (ICE Liffe)X Jul 1582.00 83.00 UK 2.5%' 20 373.10 -2.880 -2.849 0.27 6.58 653041.71 27
03/47 0.80 100.00 0.80 -0.01 0.00 0.00 0.00 Real yield May 30 Dur yrs Previous Yr ago May 30 Dur yrs Previous Yr ago
Ethanol - - Cocoa (ICE US) Jul 1988.00 74.00 UK 2.5%' 24 371.80 -2.205 -2.162 0.74 6.82 653041.71 27
Netherlands 01/20 0.25 102.40 -0.65 0.00 0.00 0.00 0.00 Up to 5 yrs -2.51 1.97 -2.49 -1.25 -3.25 1.97 -3.24 -1.86
Uranium Jun 18.10 0.00 Coffee(Robusta)X Jul 2010.00 27.00 UK 2%' 35 273.88 -1.791 -1.774 1.49 9.08 653041.71 27
07/27 0.75 102.32 0.51 -0.03 -0.10 -0.03 0.00 Over 5 yrs -1.73 24.71 -1.75 -0.92 -1.76 24.80 -1.78 -0.95
Carbon Emissions - - Coffee (Arabica) Jul 132.15 1.10 US 0.625%' 21 103.72 -0.249 -0.260 0.21 35.84 1253376.13 38
White SugarX 438.00 -0.30 New Zealand 04/20 3.00 102.48 2.11 0.00 -0.03 -0.14 -0.03 5-15 yrs -2.01 8.47 -2.00 -0.91 -2.13 8.48 -2.12 -1.03
Diesel - - US 3.625%' 28 133.26 0.507 -0.260 0.58 16.78 1253376.13 38
Sugar 11 15.22 -0.15 04/27 4.50 114.35 2.82 0.00 -0.04 -0.17 0.23 Over 15 yrs -1.71 29.77 -1.73 -0.92 -1.72 29.81 -1.75 -0.94
Unleaded (95R) - - Representative stocks from each major market Source: Merill Lynch Global Bond Indices Local currencies. Total market
Norway 05/19 4.50 107.69 0.57 0.01 -0.01 -0.08 -0.05 All stocks -1.74 23.00 -1.76 -0.92 -1.77 23.11 -1.79 -0.96
Base Metals ( LME 3 Months) Cotton Jul 77.20 0.05 value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par
Aluminium 1928.50 -23.50 Orange Juice Jul 138.05 -0.95 02/27 1.75 102.24 1.50 -0.02 -0.03 -0.12 0.00 See the FTSE website for more details: http://www.ftse.com/products/indices/gilts
amount.
Aluminium Alloy 1670.00 -10.00 Palm Oil - - Portugal 06/19 4.75 109.20 0.22 0.01 -0.06 -0.14 -0.83
Copper 5657.00 -5.00 Live Cattle Jun 122.63 0.00 BONDS: TEN YEAR GOVT SPREADS 04/27 4.13 108.60 3.10 -0.04 -0.06 -0.46 0.00 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed accurate
Lead 2098.50 -24.50 Feeder Cattle Aug 147.20 -4.03 Spain 01/19 0.25 100.89 -0.28 0.00 0.00 0.00 0.00 at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor guarantee
Nickel 9115.00 30.00 Lean Hogs Jun 81.88 0.00 Spread Spread Spread Spread 04/27 1.50 99.78 1.52 -0.01 -0.07 -0.12 0.00 that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any
Tin 20375.00 50.00 Bid vs vs Bid vs vs Sweden 10/18 1.00 99.42 1.44 0.00 0.00 0.02 0.30 loss arising from the reliance on or use of the listed information. For all queries e-mail
Zinc 2625.50 -19.00 % Chg % Chg Yield Bund T-Bonds Yield Bund T-Bonds 11/26 1.00 104.62 0.50 0.01 -0.03 -0.09 -0.30 ft.reader.enquiries@morningstar.com
Precious Metals (PM London Fix) May 26 Month Year Australia 2.53 2.24 0.30 Italy 2.18 1.88 -0.05 Switzerland 07/20 2.25 109.54 -0.78 0.00 0.00 0.00 0.00
Gold 1262.70 -2.35 S&P GSCI Spt 381.36 -0.38 2.54 Austria 0.58 0.29 -1.65 Japan 0.04 -0.25 -2.19 06/27 3.25 134.53 -0.15 0.00 0.00 0.00 0.00 Data provided by Morningstar | www.morningstar.co.uk
Silver (US cents) 1727.00 -2.00 DJ UBS Spot 83.12 -1.10 -2.78 Belgium 0.65 0.36 -1.58 Netherlands 0.51 0.22 -1.71 United Kingdom 07/19 1.75 103.56 0.09 0.00 -0.04 0.01 0.00
Platinum 961.00 11.00 R/J CRB TR 182.69 -0.33 -2.27 Canada 1.42 1.13 -0.81 Norway 1.50 1.21 -0.73 07/22 0.50 100.29 0.44 -0.02 -0.08 -0.07 0.00
Palladium 780.00 13.00 M Lynch MLCX Ex. Rtn 231.14 -9.84 -33.05 Denmark 0.57 0.27 -1.66 Portugal 3.10 2.80 0.87 07/27 1.25 101.68 1.07 -0.02 -0.09 -0.09 0.00
Bulk Commodities UBS Bberg CMCI TR 13.57 -1.32 1.79 Finland 1.45 1.15 -0.78 Spain 1.52 1.23 -0.70 07/47 1.50 96.34 1.65 0.00 -0.05 -0.07 0.00
Iron Ore (Platts) 57.80 0.00 LEBA EUA Carbon 5.04 0.00 -13.55 France 0.73 0.44 -1.50 Switzerland -0.15 -0.44 -2.38 United States 03/19 1.25 99.95 1.28 -0.03 -0.02 0.01 0.00
Iron Ore (The Steel Index) 57.90 0.10 LEBA CER Carbon 0.23 -8.00 -42.50 Germany 0.29 0.00 -1.94 United Kingdom 1.07 0.78 -1.15 04/22 1.88 100.49 1.77 -0.02 -0.06 -0.03 0.00
GlobalCOAL RB Index 73.75 1.00 LEBA UK Power 3060.00 225.53 57.73 Greece 5.98 5.69 3.75 United States 2.23 1.94 0.00 05/27 2.38 101.30 2.23 -0.02 -0.06 0.00 0.00
Baltic Dry Index 900.00 -12.00 Ireland 0.76 0.47 -1.47 05/47 3.00 102.07 2.90 -0.01 -0.05 0.00 0.00
Sources: NYMEX, ECX/ICE, CBOT, X ICE Liffe, ICE Futures, CME, LME/London Metal Exchange.* Latest prices, $ Data provided by SIX Financial Information Data provided by SIX Financial Information
unless otherwise stated.
18 FINANCIAL TIMES Wednesday 31 May 2017
Currencies
Equities
Commodities
Oil prices slip as surprised bulls seek deeper cuts from Opec and its allies
non-Opec producers joined the deal. Analysts and energy bodies such as a barrel, from an initial estimate countries that rely on crude export reve-
ANJLI RAVAL AND NEIL HUME
Prices had risen ahead of last Thurs- the International Energy Agency expect Oil prices of $54.80. nues to fill government coffers could fall.
Oil prices took a further hit yesterday, days Vienna meeting of ministers with supply and demand to balance during $ per barrel But some analysts have said that Low oil prices means lower govern-
reflecting disappointment among trad- hedge funds closing out many of their the second half of this year. 58 while the oil market is focused on excess ment revenue, consequently less money
ers that Opec and its allies agreed to only bearish bets on oil. The run-up to the But there are some concerns output supply from the US or those countries spent, they said. A further and sus-
Brent 56
extend, but not deepen, production cuts Opec meeting saw extensive short cov- curbs from global producers could participating in the cuts deal, the mar- tained drop in oil prices, potentially
to drain a glut in the market. ering, said Carsten Fritsch at Com- accelerate after the nine-month mark, 54 ket recovery could be derailed instead towards $40 [a barrel] and lower, could
Some of the worlds biggest producer merzbank. while others say the cuts will be offset by by weaker demand growth. in fact be detrimental to global oil
countries including Saudi Arabia and When ministers merely offered an a reinvigorated US shale oil industry 52 Paul Horsnell, head of commodities demand growth.
Russia last week agreed to curb supplies extension of the current deal, prices fell keeping prices under pressure. research at Standard Chartered, said: These worries overshadowed expec-
50
for a further nine months, into 2018, in 5 per cent. They rebounded slightly but Goldman Sachs, one of the most influ- You dont need an economic apoca- tations of a strong start to the American
an effort to end an oil market downturn then came under renewed pressure yes- ential banks in the commodities space, 48 lypse [for demand growth to disap- summer driving season when US holi-
that has entered its third year. terday. reduced its forecasts for oil prices this WTI
point]. If one or two countries are daymakers spur demand for fuels such
The outcome of the Opec meeting Brent, the global benchmark, fell $1 to year, saying falling costs for US produc- 46 softer than expected, this strikes me as as petrol, diesel and jet fuel. The Ameri-
took oil bulls by surprise, said Tamas $51.19 a barrel in mid-afternoon trading tion would help sustain output. 44 a much more likely way the oil market can Automobile Association had pre-
Varga at London-based oil broker PVM. in London. West Texas Intermediate, The bank sees Brent crude prices for Jan 2017 May rebalancing is delayed. dicted the long weekend just passed
The market probably expected deeper the US marker, slid 67 cents to $49.03 a 2017 at $55.39 a barrel, down from Meanwhile, FGE analysts warned that would see the highest level of driving
cuts and was disappointed that no more barrel. $56.76 previously, and WTI at $52.92 Source: Thomson Reuters Datastream should prices slip further, usage from activity since 2005.
Wednesday 31 May 2017 FINANCIAL TIMES 19
Global overview
TRADING POST Markets update
Jamie
Chisholm
Mixed data and energy concerns S&P 500 index
Change on day 0.10%
S
mall, affluent and, at least until now, politically In an attempt to curb emissions from 2017 18 19 20
stable, Austria rarely features on global inves- ships, the UN International Maritime Source: S&P Global Platts
tors horizons. It might soon. Organization has placed a cap on sul-
Austrias stock market has been Europes star phur content in marine fuel oil from Shipowners intentions post
performer so far this year. The Austrian Traded 2020. While good news for the environ- regulatory changes
index (ATX) is up 20 per cent twice as much as Frances ment, the change in bunker fuel stand- % of respondents
CAC 40 or Germanys Dax. Only Venezuelan, Polish and ards threatens to raise fuel prices, hitting Other 2
Greek stocks have performed better, according to Bloom- airlines and consumers at the pump, as 5
Switch to
berg. Yet all is not well in the Alpine country famous for its well as pushing up freight rates. LNG
mountain scenery, schnitzel and The Sound of Music. Its very, very tricky, says Lars Rob- 19
A snap election called this month for October 15 offers ert Pedersen, deputy secretary-general Install
another chance for Europes rightwing populist politicians at the Baltic and International Maritime scrubber
74
to take power just three weeks after Germany is likely Council (Bimco), representing about 60
to have re-elected Angela Merkel as chancellor. The Free- per cent of the worlds shipowners. Buy low
sulphur fuel
dom party will play on Austrias economic underperform- Six months ago the IMO, which gov-
ance relative to its larger neighbour, and on Europes erns international shipping, decided to Source: UBS
migration crisis. cut sulphur limits in marine fuel from
The ATXs surge is partly stock specific, the result of 3.5 per cent to 0.5 per cent in 2020. Estimates calls the lowering of the bunker fuel Consulting commissioned by Bimco and about 90 per cent of goods traded, and
improvements at Erste and Raiffeisen banks and the OMV In two and a half years, shipowners suggest the emissions cap easily the most dramatic several petroleum associations shows fuel costs account for 70 to 80 per cent of
energy group, which make up more than 40 per cent of will either have to switch to more expen- shipping change in fuel specifications in any oil the fuel changes would increase prices total voyage expenses, according to S&P
the index. Nevertheless, Austria illustrates the increasing sive higher-quality marine fuel, invest industrys product market on such a large scale. by about $10 to nearly $20 per barrel, or Global Platts.
confidence in continental European economies and in emissions-cleaning systems, or move fuel costs will The problems for the oil market are 11 to 23 per cent, across all products Wood Mackenzie, the fuel consult-
the rapidly diminishing political fears after Frances presi- to alternative fuels such as liquefied nat- rise by up to twofold. Although high-sulphur bunker worldwide. ants, estimate the shipping industrys
dential election. The risks in terms of populism are for ural gas. $60bn in 2020 fuel accounts for only 4 per cent of glo- The product markets are already fuel costs could rise by up to $60bn in
now . . . most probably higher in the US than Europe, says Many analysts see ships shifting to following the bal oil demand, the marine market has reflecting the rule change, with forward 2020, or more than 50 per cent to
Fritz Mostbck, head of research at Erste. higher-grade marine fuel. A survey of 51 implementation traditionally been an important outlet prices in 2020 for high-sulphur fuel fall- $174bn. Sushant Gupta, research direc-
Historically and geographically a link between west and shipowners by UBS showed three-quar- of the IMOs for the refining industry, absorbing resi- ing and high-quality gas oil a bench- tor of the consultancys Asia Refining,
east Europe, Austria is a play on the continents formerly ters would buy low-sulphur fuel. cap on sulphur due from the refining process, which is mark for low-sulphur marine fuel ris- calculates that the bunker fuel rule
communist economies. Its Whatever choice they make, it will be emissions turned into heavier fuel oil. ing, according to S&P Global Platts. change will add $1 to a barrel of crude oil
companies are typically mar- expensive, with some estimates point- FT montage/ Reuters
Second, the higher demand for lower- Oil refiners will especially feel the transported from the Middle East to
ket leaders in industrial
The populism ing to shipping cost increases of up to 85 sulphur fuels will exacerbate the strain impact of the rule change as the supply Singapore,
niches and make sensible risks are per cent. But the knock-on effect of the of limited capacity and increase the and demand for various products shift. Despite these concerns, the IMO says
things the world needs in an rule change to marine fuel is likely to prices of oil products, including diesel, EnSys says its modelling shows the fuel last years decision was based on a
investment cycle upturn, such
probably higher ripple beyond the worlds shipping fleet jet fuel and gasoline. rule changes will lead to extreme diffi- review by consultancy CE Delft, which
as high-specification car parts in the US to the oil industry and commodities Since the key clean products gaso- culty and indeed potential infeasibil- concluded that the refining sector
(Voestalpine), bricks (Wien- trading. line, jet fuel and diesel are closely ity for oil refiners to supply the ship- would be able to produce sufficient low-
erberger) and hydropower
than Europe Its huge, says Kho Hui Meng, the related, when demand and pricing for ping and airline industries as well as sulphur bunker fuel to meet the indus-
equipment (Andritz). head of Asia for Vitol, an independent one surges that tends to also raise prices consumers needs. trys needs.
The ATX is also a post-global financial crisis catch-up oil trader, adding, it will put the trading of the others, says Martin Tallett, presi- The wider commodities industry Its been motivated by the huge ben-
story. The index is still 30 per cent lower than at the start of market in a spin. dent of EnSys Energy. from oil to coal to sugar also faces a eficial impact on the environment and
2007 even though the worst fears about its banks expo- The International Energy Agency A report by EnSys and Navigistics rise in freight rates. Shipping carries on human health, says the IMO.
sures never materialised. True, Austrias economic growth
trails that of Germany. But since the crisis it has matched
rivals such as France and the Netherlands, and has been
boosted by the fiscal stimulus triggered by the migration Capital markets
crisis and modest tax reforms.
It is perhaps not surprising, therefore, that recent politi-
cal upsets in Austria have left the financial markets look-
ing unperturbed.
Mideast sovereigns
The October 15 election will be a three-way contest. The
Social Democrats and the centre-right Peoples party cur-
go into debt overdrive
rently govern as a grand coalition. Until recently voter
disenchantment with their performance was spurring the
third contender the far-right populist Freedom party, KATE ALLEN CAPITAL that was among the strong-
which was leading in opinion polls. MARKETS CORRESPONDENT est I have seen in 20 years.
However, this month Sebastian Kurz, the 30-year-old Middle Eastern govern- Such big debt sales helped
foreign minister, took over the leadership of the Peoples ments have set a debt- to develop the whole
party. His youth and charisma have led to comparisons to raising record in the first regions capital markets
Frances new president, Emmanuel Macron, and his five months of the year, tak- because they made it easier
partys support in opinion polls has since leapt above that ing advantage of investor for new issuers to enter the
of the other two parties. demand for high-yielding market as investors devel-
But Mr Kurz would almost certainly need a coalition ally, emerging market bonds. oped knowledge of and con-
and there is a good chance he would turn to the Freedom fidence in the region, he
party which was internationally reviled in the past Some $38.5bn of syndicated added.
because of its perceived xenophobia and links with pan- sovereign bonds have been Middle Eastern countries,
German nationalism. sold in the region in 2017, including Egypt, have been
The implications might not be as dramatic as they would more than double the record the largest contributors this
have been if anti-establishment Eurosceptics had won in amount in the same period year, making up more than a
France or if they take control after Italys elections next last year, according to figures third of issuance by value.
year. The Freedom party does not seriously challenge Aus- from data provider Dealogic. The biggest Middle East-
trias membership of the EU or eurozone. I mean no Jan Dehn, head of research ern deal was by Saudi Arabia,
offence to Austria, but it would not be the same as if Italys at Ashmore Investment which raised $9bn last
[Eurosceptic] Five Star Movement was in office, says Fre- Management, which has month in a record-breaking
derik Ducrozet, economist at Pictet. bought into some of the issu- Islamic bond, or sukuk.
Nevertheless, a government that included the Freedom ance, said many Middle East- In second place Kuwait
party could add Austria to the awkward squad of EU ern countries needed to raise landed $7.9bn in five-year
countries obstructing the policies a newly revived Franco- debt to replace the income and 10-year tranches in
German partnership under President Macron and Chan- from oil they had previously March.
cellor Merkel especially on migration policies and Euro- relied on. Rajiv Shah, head of debt
pean economic integration. One of western Europes previ- Some countries revenues capital markets for the Mid-
ously most stable and predictable economies would have halved in 2015 and their dle East, Turkey and Africa
become less so a good reason to put it on global investors economies have not really at BNP Paribas, called the
watch lists. adjusted since, he said. market conditions amaz-
They have been draining ing, but warned that they
ralph.atkins@ft.com their reserves and spending were unlikely to last.
as though oil prices will go up We are very much in a
again. But as it is becoming sweet spot, he said.
clearer that oil prices will Issuers were taking advan-
stay lower for longer, they tage of demand to stock up
are realising that they need on finance, Mr Shah added.
More comment and data on ft.com to issue debt instead. Global markets have been
EM governments as a so positive this year that we
whole have raised just under are seeing a lot of front-load-
Y Fast FT Our global economies, headed $100bn in finance from ing of supply. People are par-
team gives you market- by Brazil, Russia, India investors in 2017 up from ticularly aware that US rates
moving news and views, and China. $80bn in the same period last are rising.
24 hours a day, five days ft.com/beyondbrics year, and nearly two-thirds The amount raised is
a week. ft.com/fastft of the 2016 total. almost as high as Middle
Y Podcast The Hard
Y Alphaville Our Currency podcast takes a Egypts move last week to Eastern sovereigns issuance
irreverent financial blog. look at what is driving raise $3bn via the sale of five- for the whole of 2016.
Join Paul Murphy and the global currency year, 10-year and 30-year Some observers cautioned
Bryce Elder for the daily market. ft.com/podcasts debt its second fundraising about the level of risk. It was
Markets Live session at of 2017 was the latest in a quite courageous to buy
Y Lex Video Analysis flurry of deals. Egypts 30-year debt given
11am. ft.com/alphaville
and opinion from the Camille Abousleiman, a the potential for geopolitical
Y beyondbrics News and team on the hot issues partner at the Dechert legal change in the region, said one
comment from more affecting companies and firm who advises issuers and person with knowledge of
than 40 emerging markets. ft.com/lexvideo investors, said it was really a the market who did not wish
unique moment, a boom to be named.