M I D D L E E A S T Thursday November 1 2012

Welcome to the club UBS’s undoing heralds a

grim new era for Wall Street
Disney’s Star Wars coup. Companies, Page 17 Gillian Tett, Page 11
World Business Newspaper

News Briefing

Buffett bets on US
housing market
Forecasts Wall Street traders battle the odds
in a city split by stark power divide
Warren Buffett’s Berkshire
Hathaway has made another
bet on a recovery in the US
housing market, agreeing to
lend the conglomerate’s
dash hopes
for Greek
trusted brand to a new
venture. Page 15

JPMorgan ‘whale’ suit

JPMorgan Chase, which lost
at least $5.8bn through a
credit derivatives position

debt target
created by a trader
nicknamed the “London
Whale”, has filed a lawsuit
against the trader’s manager.
Page 15

Draghi broadens role Creditors may face fresh funding calls

Mario Draghi, president of
the European Central Bank,
has stopped the rot but the
prospects for the bloc remain
dire. Page 7
Italy’s ‘vicious circle’
Italy’s economy risks a
“vicious circle” of weak
growth and lack of
confidence, the governor of
the Bank of Italy warned.
Page 6; Jobless total in bloc
hits high, Page 7
China raises stakes
China has turned up its
rhetoric on Japan’s control of
a disputed chain of islands in
a move likely to inflame a
dangerous stand-off between
Beijing and Tokyo. Page 2;
David Pilling, Page 9; Podcast
at www.ft.com/worldweekly
Syria violence shifts
Long-feared violence between
factions of Syria’s large
Palestinian population has
moved a step closer, as rival
militias prepared to face off
in a Damascus district
heavily populated by
refugees. Page 8
UAE bolsters role
The United Arab Emirates
has confirmed its place as
Turkey’s leading export
market, with precious metals
driving sales thanks to
Iranian demand for gold.
Page 8
Korean shakes up race
December’s presidential
election poll in South Korea
has been enlivened by Ahn
Chul-soo, a candidate unlike
any seen before in the
country’s 25 years of
democracy. Page 2; Lex, Page 14
By Peter Spiegel in Brussels and
Kerin Hope in Athens
The magnitude of Greece’s fiscal
challenge was painted in sharp
relief yesterday as Athens
unveiled new budget projections
exceeding the worst-case scenar-
ios envisioned by international
lenders when they agreed an
€174bn rescue eight months ago.
Instead of Greece’s debt peak-
ing at 167 per cent of economic
output next year, as predicted in
the March bailout agreement, it
will hit 189 per cent and climb
to 192 per cent in 2014, accord-
ing to projections presented to
the Greek parliament.
Even under an “alternate sce-
nario” prepared by the Interna-
tional Monetary Fund in March,
which attempted to project a
pessimistic economic and fiscal
picture, Greece’s debt was only
predicted to peak at 171 per cent
of gross domestic product.
The new projections all but
dash hopes Greek debt would
come down to 120 per cent of
GDP by 2020 – once held out as
the standard for a manageable
debt load – and senior EU offi-
cials acknowledged they may
have to give Athens more lee-
way to hit that target under a
revised rescue currently being
negotiated.
The scale of the faltering has
yet again put Germany and
other eurozone creditors in a
political quandary, forced to
come up with as much as €30bn
in new funding to meet Greece’s
needs for an overhauled bailout
though 2016, despite strong
resistance at home to any new
aid. “[It] is not exactly a sur-
prise, but it’s going to stir
debate on Greece’s future fund-
ing,” said one Greek official.
Eurozone finance ministers
began to lay the groundwork for
a deal in a conference call yes-
terday, where each country laid
out red lines, according to peo-
ple briefed on the discussions.
Germany has ruled out addi-
tional aid or taking losses on
existing bailout loans to lighten
Greece’s debt load.
Instead, EU officials said they
were looking at three possible
solutions to close the gap: fur-
ther lowering interest rates on
bailout loans; buying back
Greek bonds at current
depressed prices and retiring
them; or striking a deal with the
European Central Bank not to Reopened for business: New York’s mayor Michael Bloomberg, centre, rings the opening bell at the New York Stock Exchange yesterday Reuters
take profits on the €55bn in
Greek bonds it holds. Officials
said the eventual solution was By Tom Braithwaite and New York, rang the opening bowitz, chief operating officer Goldman Sachs, was flooded
likely to be a combination. FT reporters in New York bell of the New York Stock at the exchange, said: “We have and advised clients to contact
Jean-Claude Juncker, the Lux- Exchange, after the first two- 40 hours worth of fuel in the lawyers using text messages.
embourg prime minister who A waterlogged Wall Street day storm suspension since the back-up generators and we’ve Companies in midtown fared
chairs the eurogroup, said he struggled to return to work yes- blizzard of 1888. Power was still already refuelled them twice.” better – unless they were close
aimed to have the deal com- terday as markets reopened in out for most of Lower Manhat- There was a stark divide to the precarious dangling
pleted for the next formal meet- a Lower Manhattan that still tan, home to the NYSE and between the city’s northern and crane at 57th street.
ing on November 12, although lacked basic services such as banks including Goldman southern districts. Downtown, Jean-Yves Fillion, the new
officials said it could be decided electricity and working phones. Sachs and Citigroup, as well as despite the NYSE’s reopening, head of Americas for BNP Pari-
as early as next week. Staff for Business was completed in in New Jersey. Companies were internet connections for most bas, had been holed up on the
the “troika” of international trying circumstances, with a reliant on generators, not all of trading firms remained down 30th floor of his building since
lenders are due to present a $3bn lingerie acquisition sewn which worked. and traders had spotty mobile the storm struck on Monday
detailed plan for closing the up in a church car park. NYSE Euronext, which faced phone service at best. night. “Windows were shaking,
financing gap within days. Emanuel Chirico, chief execu- some criticism for the two-day Rosenblatt Securities set up a and the building was shifting
“We still have to decide on tive of PVH, the conglomerate shutdown, was determined to “dispatch centre” at their and creaking,” he said.
how to reduce the debt burden,” of fashion brands including keep the lights on. Larry Lei- uptown office, above what man- Additional reporting by
said Olli Rehn, the EU’s top eco- Tommy Hilfiger, announced he aging director Gordon Charlop Stephen Foley, David Gelles,
nomic official. “We are working had agreed to acquire Warnaco, called the “Mason-Dixon Line” Kara Scannell, Arash Massoudi,
intensively and in a very good the underwear manufacturer, ‘We have 40 hours dividing Manhattan between Tracy Alloway and Michael
spirit with our troika partners after a desperate quest for a worth of fuel in the those with electricity and those Mackenzie
in order to present our joint mobile phone signal had ended without.
conclusions before the next outside the Immaculate Concep- back­up generators New York’s financial busi- Superstorm Sandy, Page 3
eurogroup meeting.” tion Church in Tuckahoe, New
York. “Before I made the call I
and we’ve already nesses have shown varying
degrees of resilience. Sullivan &
US elections, Page 4
John Gapper, Page 11
Reform and budget vote, Page 6 said a little prayer,” he said. refuelled them twice’ Cromwell, the prominent law PVH deal, Page 18
Editorial Comment, Page 10 Michael Bloomberg, mayor of firm whose clients include Markets, Pages 26 and 28

US shift on Modi
Narendra Modi, the leader of
India’s Gujarat state who
was accused of complicity in
the 2002 Gujarat riots but
Chemical reaction
Barclays faces fresh blow as US
never charged, will be
allowed to apply for a US
visa, a US official said, in an
apparent softening of
energy watchdog eyes $100m fine
Washington’s stance towards
him. Page 2; www.ft.com/india By Daniel Schäfer and laws. The US authorities are tle mis-selling claims and a
Caroline Binham in London investigating whether its rela- charge on the value of its own
India labour concerns tionships with third parties who debt helped drag the bank to a
India’s construction industry The ambition of Barclays’ new assist it to win or retain busi- quarterly pre-tax loss of £47m in
is thriving on a vast, mobile chief executive to restore the ness comply with the United the third quarter, down from a
workforce that lives and group’s battered reputation was States Foreign Corrupt Practices profit of £2.42bn a year earlier.
works in squalor. Page 8 dealt a fresh blow when it Act, the bank said. Potential lia- The Financial Times reported
emerged the bank faces a fine of bility in FCPA investigations is this year that Barclays and four
Taiwan economy lift potentially more than $100m huge: the largest fine paid to former traders were being inves-
Taiwan’s economy returned over alleged energy market settle FCPA allegations was the tigated for allegedly manipulat-
to growth in the third manipulation. $800m paid by Siemens in 2008. ing the Californian electricity
quarter. www.ft.com/asiapacific Potash Corporation of Barclays vowed to “vigorously Antony Jenkins, the chief markets. The regulator alleges
Saskatchewan, one of the defend” itself after disclosing it executive, who came in this that the bank bought and sold
world’s largest fertiliser groups, faced a possible fine by the US summer with a promise to electricity in enough volume to
has approached the Israeli Federal Energy Regulatory change the bank’s culture by move exchange prices to benefit
Separate section government to win approval to Commission over power trading “embedding a refreshed set of parallel swap positions, accord-
buy rival Israel Chemicals, the in the western US from late 2006 values and behaviours” said the ing to a notice in April.
FT Formula One Tel Aviv­listed group. The to 2008. One insider called it a first investigation did not imply FERC, which declined to com-
The return of the US Grand Prix companies warned that the “ludicrously high” figure. The any “wrongdoing”. He is trying ment, has this year fined Con-
is the latest attempt to crack discussions were preliminary bank which this summer paid a to rebuild the bank’s reputation stellation Energy, a utility com-
a lucrative but crowded market and there was no assurance of £290m fine for manipulating the after a series of scandals includ- pany, a record $245m for power
a deal. Some analysts were Libor benchmark interest rate ing the manipulation of Libor market manipulation.
sceptical the talks would lead also disclosed it is being investi- and the mis-selling of payment Additional reporting by Adam
to a merger. gated by the US Department of protection insurance and inter- Jones, Jennifer Thompson and
Justice and the US Securities est-rate hedging products for Gregory Meyer
Subscribe now Report, Page 15 and Exchange Commission over small and medium-sized busi-
whether it breached corruption nesses. Large provisions to set- Electricity manipulation, Page 18
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9 770174 736142
2 ★
China raises stakes in island dispute
Ministry warns of
fundamental change
Patrols ward off
Japanese ships
By Kathrin Hille in Beijing
The Chinese government
has turned up its rhetoric
on Japan’s control of a dis-
puted chain of islands in a
move likely to inflame a
dangerous stand-off be-
tween Beijing and Tokyo.
“Japan should face the
reality that the situation at
the Diaoyu Islands has
already undergone funda-
Doubts grow
over Beijing’s
ability to ring
the changes
Leadership switch
US observers fear
powerful interest
groups will hinder
economic and
political reform,
writes Geoff Dyer
Complaints of political grid-
lock and powerful vested
interests are not unusual,
but it is surprising when it
is Washington insiders lev-
elling such criticism at
China.
Ahead of the US election,
Washington is worried
about whether politicians
can reach a budget deal
after November 6 to avoid
the “fiscal cliff”. But China
watchers in the US fear Bei-
jing is on the verge of a
similar moment of truth as
the Chinese Communist
party prepares to unveil its
new generation of leaders
in two weeks’ time.
The pending leadership
change has crystallised a
significant shift in US views
of China, from the unstop-
pable steamroller that
surged out of the 2008 finan-
cial crisis to a more familiar
story of a government una-
ble to make tough decisions
in the face of powerful
interest groups.
“Both China and the US
are now at a critical turn-
ing point, where past
approaches require a major
mental change,” China’s
foreign ministry told report-
ers yesterday.
The foreign ministry
remark came a day after
the State Oceanic Adminis-
tration, one of the govern-
ment agencies that enforce
China’s maritime interests,
said it had taken measures
to chase Japanese ships out
of the territorial waters of
the islands.
The islands are controlled
by Japan, which calls them
the Senkakus, but also
claimed by China and Tai-
wan, which call them the
Diaoyus. In the past, the
Japanese coastguard pa-
change or they will face
real economic dangers,”
says Ken Lieberthal, a
former White House official
now at the Brookings Insti-
tution. “In the US it is our
fiscal situation, in China it
is the need for major eco-
nomic restructuring.”
While China’s economy
has recorded near double-
digit growth for the past
decade, the emerging US
view of President Hu Jintao
and Premier Wen Jiabao is
of leaders who have fum-
bled efforts to introduce
economic and political
reform.
Beijing has long talked
about the need to shift
China’s economic model
from investment and
exports towards consump-
tion and services. Politi-
cians including Mr Wen
have also talked about the
need for a more open politi-
cal system.
While there have always
been some sceptics in the
US about the Chinese lead-
ers’ ability to push through
such changes, that kind of
pessimism about the pros-
pects for reform in China
has become more wide-
spread over the past year.
During previous transi-
tions, observers paid much
attention to the biographies
and personalities of the new
Chinese leaders. This time,
however, there is much
more focus on whether the
Chinese political system
has become too clogged by
trolled the waters around
the islands and occasionally
expelled Chinese and Tai-
wanese fishing boats.
But since a move by the
Japanese government to
nationalise some of the
islands sparked fury in
China, Beijing has accused
Tokyo of changing the sta-
tus quo around them. It
responded by announcing a
territorial baseline for the
islands – which allows the
calculation of territorial
waters and thus serves as a
legal backing for such
claims – and regular patrols
of the disputed waters.
But while there has been
Looking on: a paramilitary police officer lowers the China flag, in front of a picture of Mao Zedong, during a ceremony in Tiananmen Square, Beijing
special interests to tackle
difficult problems.
“The issue is not whether
the new leaders introduce
reforms, it is whether they
can implement those
reforms,” says Stapleton
Roy, a former ambassador
to China. He says the suc-
cess of a number of state-
owned companies over the
past decade has created a
“Frankenstein’s monster”
that the party cannot easily
control. “Their monopoly
position has allowed them
to acquire vast monetary
assets that they can use
to back their own agenda,”
he adds. “It sounds some-
what similar to our situa-
tion in the US.”
David Shambaugh, a ambassador to China from
Soft­spoken outsider shakes up
presidential race in South Korea
Campaign trail
Ahn Chul­soo’s lack
of experience is seen
both as an asset
and a weakness,
say Simon Mundy
and Song Jung­a
South Korean presidential
elections tend to be tussles
between career politicians
but December’s poll has
been enlivened by a candi-
date unlike any seen before
in the country’s 25 years of
democracy.
Ahn Chul-soo, a 50-year-
old technology entrepre-
neur and academic, is a
stranger to the corridors of
political power but has por-
trayed that as a virtue as he
woos voters unhappy at
social inequality and slow-
ing economic growth.
“We need a fundamental
remedy,” he told a break-
fast meeting of the Korean
Chamber of Commerce and
Industry. “If the ruling
party and the opposition
party co-operated, they
could have solved so many
problems.”
Mr Ahn’s soft-spoken
charm and clean-cut image
helped him develop a cult
student following during
three years as a university
professor in Seoul, after he
stepped back from the soft-
ware company that he
founded. Many South Kore-
ans, particularly the young,
are disillusioned by infight-
ing and corruption scandals
in the political mainstream
WORLD NEWS
friction involving Chinese
government vessels in dis-
puted waters before, ana-
lysts see the foreign minis-
try’s statement as a new
phase of escalation.
“Such a statement is cer-
tainly unprecedented with
respect to the Senkaku dis-
pute,” said Taylor Fravel,
an expert on Chinese secu-
rity affairs at the Massachu-
setts Institute of Technol-
ogy in the US.
“In the past, China usu-
ally avoided entering the
territorial waters around
the islands, thus acknowl-
edging Japan’s effective
control of the Senkakus and
China specialist at George
Washington University,
says that over the past
three years there has been a
“period of retrogression,
where the system cannot
seem to take the initiative”.
He questions whether the
new leaders will be able
to introduce substantial
changes in the face of oppo-
sition from state-owned
companies, the People’s Lib-
eration Army, local officials
and the government
bureaucracy.
“The system is becoming
fragile, sclerotic, atrophy-
ing,” he says. “It is showing
some the classic signs of
dynastic decline.”
Jon Huntsman, US
and by a sense that the eco-
nomic dice are loaded in
favour of big business. Mr
Ahn has promised stronger
punishment of corrupt offi-
cials, a crackdown on anti-
competitive practices by the
powerful family-controlled
conglomerates and tax
breaks for small businesses.
But on the campaign trail
this week, Mr Ahn came in
for tough questioning from
interest groups outside his
youthful core support base.
“Your plans to create jobs
do not seem effective,” one
chief executive said at Tues-
day’s breakfast meeting.
“Your plan to increase
taxes is causing concern to
companies,” said another.
An hour later, having
changed from a dark suit
into a green fleece and
orange zip-up cardigan, Mr
Ahn arrived at a children’s
centre to meet mothers who
complained about the exces-
sive pressure piled on chil-
dren by the school system.
“Politicians are too re-
laxed about the education
problems,” said Yang Eurn-
hee, a member of the forum.
Seemingly unruffled by
the tough questioning, Mr
Ahn told the chamber of
commerce of the need for a
fairer business sector that
would deliver greater inno-
vation and a more prosper-
ous middle class. To the
mothers he promised an
end to “the era of policy
makers sitting at a desk”
and the delivery of “an edu-
cation system where chil-
dren are the main concern
for schools”.
But the intense discus-
surrounding waters,” he
said.
“Now, China has claimed
its own territorial waters
around the islands and is
conducting patrols in these
waters, which is a direct
challenge to Japan’s control
of the waters around the
islands and to Japan’s posi-
tion that there is no sover-
eignty dispute over the
islands.”
Chinese vessels patrolled
the waters around the
islands every day between
October 1-10 and have done
so again since October 20.
The tougher line comes
just a week before the rul-
2009 to 2011, spent consider-
able time with some of the
new generation of Chinese
leaders. He describes Xi Jin-
ping, the man expected to
become president, as being
“comfortable in his own
skin”, “confident” and
“engaging”.
This strikes a contrast
with Mr Hu, with whom US
officials have sometimes
had a more distant, even
frosty, relationship.
“He is a pragmatist who
knows very well how to
work the system, the PLA,
the princelings and the
party,” says Mr Huntsman.
But the Chinese-speaking
former Republican presi-
dential hopeful believes
that within two to three
sions reflect the high stakes
in what is proving a closely
fought race against two
politically seasoned oppo-
nents. Park Geun-hye, the
candidate of the ruling New
Frontier party, is the
daughter of the former mili-
tary ruler Park Chung-hee
and has spent most of her
adult life in politics. Moon
Jae-in, the nominee of the
centre-left Democratic
United party, served as the
president’s chief of staff in
the last liberal administra-
tion.
By contrast, Mr Ahn
trained and worked as a
doctor before developing an
interest in computer sci-
ence. In 1995 he founded
Ahnlab, which went on to
become South Korea’s big-
gest antivirus software pro-
vider. Having made his for-
tune, Mr Ahn stepped back
from the company in 2005,
while maintaining a large
stake, and studied manage-
Ahn Chul­soo: a stranger to
the corridors of power
ing Communist party is due
to open a congress that will
pick a new leadership. In
the run-up to the once in a
decade succession, the
party faces an unprece-
dented crisis of confidence
as it is shaken by power
struggles.
There is public cynicism
about endemic corruption,
highlighted by accusations
of against Bo Xilai, the
ambitious former Chong-
qing party secretary purged
by Beijing this year. A New
York Times report last
week about $2.7bn in riches
amassed by family mem-
bers of premier Wen Jiabao
years, Mr Xi will face signif-
icant pressure from a fast-
changing society to set out
a political reform agenda.
“If people do not see a
game plan being laid out,
then the temperature is
really going to rise
sharply,” he says.
After three years in
which Chinese foreign pol-
icy has often been more
assertive than in the past,
observers are also looking
for clues as to whether the
new leadership will bring a
different view of how China
should deal with the rest of
the world.
Christopher Johnson, a
former CIA analyst now at
the Center for Strategic and
International Studies in
ment in the US before his
stint in academia.
Speculation last year that
Mr Ahn would run for the
mayoralty of Seoul shocked
political insiders, who con-
sider him unqualified. His
entry into the presidential
race has been attacked by
career politicians.
“He has held no public
post whatsoever,” says Lee
Hye-hoon, a member of the
New Frontier party’s
supreme council. “He is like
a novice driver. It is very
risky to let someone like
him run the country.”
The absence of a party
support base would render
Mr Ahn “impotent” in his
dealings with parliament,
says Kim Ki-jung, a profes-
sor at Yonsei University
who is close to Mr Moon.
But it is precisely this
lack of political pedigree
that is energising Mr Ahn’s
core supporters.
“Many say that Ahn’s
lack of political experience
is worrisome, but I think
that is actually an asset,”
says Jung Goo-hoon, an
unemployed 26-year-old.
“The problems in Korean
politics come from the expe-
rienced politicians.”
Yet speculation is mount-
ing that Mr Ahn will have
to enter the party political
fold if he is to be elected.
Mr Moon has urged him to
enter talks that would see
one of them quitting the
race, to avoid splitting the
liberal vote.
Additional reporting by
Laeticia Ock in Seoul
Lex. Page 14
FINANCIAL TIMES THURSDAY NOVEMBER 1 2012
US hints
at easing
has fed into that debate.
Some observers in Beijing
ban on
Gujarat
believe Xi Jinping, the vice-
president who is expected
to succeed Hu Jintao as
minister
party chief and president
this month, could seek to
bolster his credentials as a
leader by taking a tougher
line on Japan.
China has disputes over By Victor Mallet
maritime territory with sev- in New Delhi
eral neighbours. Beijing has
frequently quarrelled with Narendra Modi, leader of
the Philippines and Viet- Gujarat state, will be
nam over territory in the allowed to apply for a US
South China Sea in the past visa, an American official
few years, although it has has said, in an apparent
tried to cool those tensions softening of Washington’s
in recent months. stance towards him.
Mr Modi, seen by some
Indians as a future prime
minister, has been denied
entry to the US since 2005
under the Immigration and
Nationality Act, which bars
visas for foreign officials
responsible for serious vio-
lations of religious freedom.
The nationalist politician
was accused of complicity
in the 2002 Gujarat riots
when Hindu mobs slaugh-
tered more than 2,000 –
mostly Muslims – after
Islamists firebombed a train
carrying Hindu pilgrims.
Maya Kodnani, one of Mr
Modi’s political associates
and a former member of his
state cabinet, was convicted
of murder, attempted mur-
der and conspiracy along
with 31 others in August –
more than a decade after
the crimes – and sentenced
to 28 years in jail. But Mr
Modi has never been
charged or convicted and
denies involvement.
“He’s free to apply for
another visa whenever he
chooses and . . . the system
will take its course,” Robert
Blake, US assistant secre-
tary of state for south and
central Asian affairs, told
Times Now television dur-
ing a visit to India.
The interview transcript
was posted on the US
embassy website.
Last November, when Mr
Blake was asked whether
Mr Modi would be granted a
Reuters visa, he said there were “no
new developments on that”.
“We have very good rela-
Washington, says the “new tions with Gujarat. It’s obvi-
generation of Chinese lead- ously a very, very impor-
ers are certainly more cos- tant market for our Ameri-
mopolitan, but they are also can companies,” Mr Blake
more confident”. He cau- said in the television inter-
tions that they will face an view. “We do everything we
early challenge if territorial can to promote trade, and
disputes with Japan over not just with Gujarat but
the disputed Senkaku with all the states of India.”
Islands or in the South Ford is among US compa-
China Sea continue to flare nies that have invested in
up, because they would industrial plants in Gujarat.
need to show their domestic Britain said last month it
audience they are not going would renew ties with Mr
to be easily pushed around. Modi, who became chief
“They will just be settling minister of the business-
in when this might come friendly state of Gujarat in
back – they will be in a 2001. Other nations, includ-
position where they have to ing Sweden, have quietly
demonstrate their credibil- dropped a “gentleman’s
ity,” he says. agreement” to shun him.
Mr Modi is one of the
David Pilling, Page 11 most prominent leaders of
the Bharatiya Janata party,
the Hindu nationalist oppo-
sition to India’s Congress-
led coalition government.
CHINA IN TRANSITION His chances of being a
candidate for prime minis-
ter will rise if he is re-
elected chief minister with
a large majority in next
month’s state elections.
Although the US has not
explicitly said it will grant
CHINA IN TRANSITION
Latest news and analysis, a visa, the invitation to
plus interactive features on apply suggests that Mr
Beijing’s once­in­a­decade Modi has been taken off the
leadership change banned list. “It’s a peculiar
www.ft.com/chinaleadership case,” an insider said. “He’s
never been convicted.”
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FINANCIAL TIMES THURSDAY NOVEMBER 1 2012
Darkened
downtown
longs for
normality
Manhattan
Barney Jopson
finds people
struggling to get by
in a city divided
by its access to
electricity supplies
Standing cold and unhappy
outside the blacked-out
Chelsea International Hos-
tel, Laurie Girard, a French
student from Poitiers, gave
a terse summary of her stay
in Manhattan’s dark zone:
“No hot water; no
lights . . . Useless!”
With her English study
trip ruined by superstorm
Sandy, she was one of the
many visitors and down-
town residents struggling to
get by, as part of one of the
world’s wealthiest cities
adjusted to life without
basics – let alone its cus-
tomary luxuries.
Asked what they were
eating, Ms Girard and her
friends dug their hands into
their pockets in unison and
pulled out apples. “Pomme,”
she replied glumly.
With the shops, cafés and
restaurants around them
‘The first day [with
no power] is tough,
but once you get
beyond that it
becomes routine’
closed – and the lit zone,
somewhere north of 30th
Street, feeling like a world
away – they did not know
where they would get their
next meal.
While downtown resi-
dents who had evacuated
their homes were returning
yesterday – some to find
damage and waterlogged
basements – others who had
opted to stay and endure
two rough nights after the
storm hit began to leave.
They emerged with suit-
cases, vying to grab one of
the few free taxis rolling
cautiously past blank traffic
lights.
Most were heading to
friends and family in the
city’s northern residential
areas, whose jarring
normality, beyond a few
fallen trees, underscored
the stark rift dividing a city
that is more often united in
horror at natural disasters
elsewhere.
Other downtown resi-
dents walked north in
search of power, a mobile
phone signal or the inter-
net.
The annual Halloween
costume parade through
Greenwich Village may
have been cancelled. But in
City accused of
not acting on plan
Preparedness
By Ed Crooks and
Robert Wright in New York
No one is trying to pretend
that New York was ready
for the storm.
As Andrew Cuomo, gover-
nor of New York state, put
it: “We did not anticipate
the water coming over the
Hudson river, coming over
the banks and being five
feet deep on the West Side
Highway.”
The lack of preparedness
was not for lack of warn-
ings. New York’s vulnera-
bility to storm surges has
been known for decades,
and the city launched its
first hurricane plan in 2000.
New York’s Office of
Emergency Management
was well aware of possible
consequences such as
power outages and tunnels
being flooded.
Although there had been
much talk about the threat
of a large storm, little had
been done to mitigate the
potential damage, according
to Cynthia McHale, head of
insurance at Ceres, the net-
★ 3
SUPERSTORM SANDY
Insurance industry
Cost to economy forecast to reach $45bn
Even relatively conservative
analysts predict Sandy will
rank among the eight most
costly storms ever to have
struck the US, with losses
likelihood that the federal
government will foot a big
chunk of the bill.
Private sector
underwriters in the US do
2005. Insurers are facing
payouts for damage both to
the structure and contents
of property – residential,
commercial and industrial,
to the insurance industry of
at least $7bn, writes
Alistair Gray in London.
The more pessimistic say
initial forecasts have a
not usually cover flood
damage for households.
Many households lack cover
or are covered by the
taxpayer­backed National
plus cars – and other costs,
such as additional living
expenses for residential
claims.
Given that Sandy brought
tendency to underestimate Flood Insurance Program. New York and other big
the final tally, as was the Public sector authorities cities along the eastern
case with hurricanes Katrina will also bear much of the seaboard to a standstill,
and Irene. One consultancy, payouts for business
PwC, says the total costs to
the economy may well reach
$45bn.
$15bn interruption are also likely to
form a large part of the
total costs for insurers.
Times Square they found Even so, investors in the One estimate of bill faced “With Katrina, we saw
advertising billboards that biggest US insurance by private sector insurers interruptions claims making
continued to gleam. companies, given their first up approximately 20 per
Central Park was closed, chance to respond to the costs of repairing damage cent of the overall insurance
but on its fringes runners
continued to train for Sun-
disaster, were unflustered as
markets reopened.
to infrastructure such as
tunnels and subways.
loss,” said Mohammad
Khan, insurance partner at
day’s New York marathon, Shares in the big US Nevertheless, AIR PwC. “Whether this is
which organisers
vowed will go ahead.
have property and casualty
insurance companies came
Worldwide, the catastrophe
modelling group, estimates
applicable to Sandy depends
on the swiftness of recovery
On the Lower East Side, under some selling pressure that private sector insurers of the subway and other
one man complained of
“price gouging” as another
but few lost much more
than 1 per cent.
are facing a bill of between
$7bn and $15bn.
transports links.”
RMS, another disaster
quoted the $3 price of a The cool­headed market Inflation­adjusted data modelling company,
water bottle at a darkened reaction to the widespread from the Insurance indicated business
grocery store. devastation partly shows Information Institute show interruption insurers would
Across the island in the that investors are confident that, at the top end of the be keeping a close eye on
gloomy lobby of the Gem the well­capitalised industry range, Sandy would become “whether mandatory
Hotel, on West 22nd Street, should withstand the the third most costly storm evacuations and no­go
the receptionist complained looming multibillion­dollar in US history, surpassing zones are maintained for an
of the cold, as silhouettes of payouts. It also reflects the losses arising from Wilma in extended duration”.
colleagues with torches Broken homes: one New York street facing a huge clean­up and repair operation Getty
strapped to their foreheads
stalked around her.
Sean Ames, the hotel’s
general manager, said staff
and guests were doing fine
in the circumstances.
“The first day [with no
power] is tough, but once
you get beyond that it
becomes routine,” he said.
“The resilience of people is
amazing.”
Some guests who
remained stranded by can-
celled flights had moved to
hotels with power. But most
had stayed and were getting
supplies of coffee and
snacks from staff sent on
foraging missions to streets
a few blocks north.
Mr Ames said he was pre-
pared to be without power
for much longer, after Con-
solidated Edison, the elec-
tricity utility, said most
customers in Manhattan
would have power back
“within three days”.
He said: “We’ve charged
the UPS back-up batteries
so guests can plug in their
phones – and as long as
they have their phones the
world isn’t so bad.”
For other New Yorkers,
yesterday was the first day
back at work. They battled
to get there on crowded
buses and under their own
steam as the city’s subway
and train systems remained
crippled by unprecedented
tunnel flooding. Commuters
streamed by foot and bicy-
cle along the Queensboro
Bridge, the only remaining
link between Queens and
Manhattan.
Ms Girard, the French
student, was planning to
visit the Empire State
Building but her reserves of
enthusiasm for sightseeing
were low.
Other hotels that her
group had looked at moving
to were either full or too
expensive, and their flight
home on Saturday seemed a
long way away. “We’ve got
to stay here,” she said. “We
have no choice.”
Additional reporting by
Robert Wright, Anjli Raval,
Johanna Kassel, David Gelles,
Christopher Booker, Emily
Steel and Elizabeth Paton
work of investors that cam-
paigns on environmental
issues.
“New York had been pro-
active in thinking about a
plan to reduce these risks,
but hadn’t implemented it.”
The Metropolitan Transit
Authority, which runs the
subway, buses and some
overground rail, had taken
steps including raising of
new ventilation grates
slightly higher. Consoli-
dated Edison, which sup-
plies electricity to most of
New York, had been mov-
ing wires and transformers
to higher positions, but
many were still vulnerable.
The city’s recovery has in
some respects been remark-
ably quick. The MTA said it
hoped to restore a limited
service today. Consolidated
Edison said it had already
restored service to 109,000
customers.
Mr Cuomo argued that
the city’s reconstruction
would be a chance to make
it more resilient. “We have
to think about how we re-
design our systems so this
doesn’t happen again.”
In full: www.ft.com/us
4 ★
Hurricane Campaign claims miss the point on global trade
rages into
debate on
federal role
President tours
New Jersey coast
Romney praises
federal agency
By James Politi
in Washington
Hurricane Sandy opened up
a new front in the debate
on the role of government
that has defined much of
the US presidential race,
shifting the argument to
how much federal involve-
ment there should be in
relief operations.
But in a sign that this is
politically tricky terrain for
Republicans, Mitt Romney
has shied away from
engaging in a spirited
exchange with Barack
Obama over whether the
government should take a
more, or less, active role in
managing disasters.
As the president toured
the Sandy-ravaged yester-
day New Jersey coast with
Chris Christie, the state’s
Republican governor, Mr
Romney was back on the
campaign trail in Florida,
which is often in the cross-
hairs of large tropical
storms. The Republican
14%
Cuts to Fema disaster relief
fund planned by Obama
nominee offered a short
statement in support of the
Federal Emergency Man-
agement Agency, which
was created in the late
1970s to co-ordinate disaster
relief, saying it played a
“key role” and would have
adequate funding under his
administration.
This was in contrast to
his stance during a Republi-
can primary debate in 2011,
when Mr Romney suggested
that Fema might not be
essential.
“Every time you have an
occasion to take something
from the federal govern-
ment and send it back to
the states, that’s the right
direction,” Mr Romney said,
in response to a specific
question about funding for
the disaster agency.
“And if you can go even
further and send it back to
the private sector, that’s
even better.”
The Republican nominee
and Mr Obama have
clashed for months over the
government’s role in the
economy.
Mr Romney says Wash-
ington needs to take a back
seat, cutting taxes,
spending and regulation to
stimulate growth and
reboot the recovery. But Mr
More election news at FT.com
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Obama is offering a differ-
ent vision to American vot-
ers, of higher taxes on the
rich in order to preserve
government spending in
areas that he views as criti-
cal to sustaining the US
economy in the long run.
Mr Romney appears to be
making some headway in
that battle, running neck
and neck in national polls
with an incumbent presi-
dent less than a week
before the voters deliver
their verdict.
But if the debate on the
size and scope of the federal
government shifts to
disaster relief, Mr Romney
could easily lose some
ground.
The politics of disaster
relief were deeply harmful
to Republicans in the 2006
midterm elections, after
George W. Bush’s slow and
ineffective response to
hurricane Katrina, which
devastated New Orleans
in 2005, tarred the party
with incompetence and
heartlessness.
Over the past few years,
the political debate on
disaster relief has been less
about execution and more
about funding, given
America’s dire budgetary
shape.
In particular, a spat broke
out in August 2011, when
hurricane Irene hit the east
coast at the same time as
Fema was running out of
funding for the year.
Eric Cantor, the Republi-
can majority leader in the
House of Representatives,
suggested that any new
bump in Fema funding
should be offset by
spending cuts elsewhere,
angering Democrats who
accused him of being too
ideologically rigid in the
face of suffering.
Even under Mr Obama’s
budget, Fema funding
would be cut 3 per cent in
the coming fiscal year –
with a cut of 14 per cent to
the disaster relief fund.
Mr Romney has not said
what the funding levels for
Fema would be under his
administration.
But the Republican nomi-
nee has promised unspeci-
fied deep cuts to domestic
discretionary spending,
leading many Democrats to
suspect that the agency
could be in for sharper
reductions if he is elected.
Nonetheless, the biggest
threat to disaster relief
funding in the US would
come from both parties, if
they cannot agree on a deal
to avert the “fiscal cliff”,
leading to immediate cuts
of about 8 per cent to the
agency’s programmes.
John Gapper, Page 11
● Poll battlegrounds
The handful of finely
balanced ‘swing states’
whose voters will determine
the presidential election
www.ft.com/swingstates
● Campaign funds
The parties’ largest donors
www.ft.com/superpacs
● In­depth
Latest news and analysis
www.ft.com/uselection
GLOBAL INSIGHT
Alan Beattie
in Washington
Exaggeration and
hypocrisy may be
inevitable in any election
campaign, but the debates
on international economics
and trade have had experts
longing for next Tuesday’s
vote to be over.
Herds of peaceably
grazing policy wonks have
been left shaking their
heads as the marauding
presidential campaigns
have rampaged through
their turf, leaving wrong-
headed assumptions, non
sequiturs and falsehoods
strewn behind them.
Mr Romney’s
interventions on trade and
Changing channels: a trader on the floor of New York’s stock exchange focuses on his work as Barack Obama talks on a screen behind him
Big business has yet to learn to love Obama
Corporate view
Wealthy executives
are cheering for the
president’s defeat
in next week’s vote,
finds Stephanie
Kirchgaessner
When Barack Obama was
swept into the Oval Office
four years ago, he counted
employees at Goldman
Sachs among his biggest
financial backers.
But this year – though
there are some notable
exceptions in Hollywood,
high-tech and clean energy
industries – big business
and wealthy executives
across the country are
cheering for the US presi-
dent’s defeat. Goldman
Sachs, among executives at
AT&T and General Electric,
are now putting most of
their campaign contribu-
tions behind Mitt Romney.
From industrial magnates
like the conservative Koch
brothers to Wall Street and
big oil executives, most of
Referendums on economic issues overshadow presidency race
Michigan
By Robin Harding
in Lansing, Michigan
There is a presidential elec-
tion going on but in Michi-
gan, the birthplace of
Republican challenger Mitt
Romney, there is little sign
of it.
Instead, Michigan’s air-
waves and politics are con-
sumed by six high-stakes
referendums, which will put
primal economic issues
straight to the voters of an
evenly divided state in the
US heartland.
Rick Snyder, a pragmatic
Republican governor elec-
ted in 2010, is touring the
state to defeat measures
that would require a two-
thirds majority in the legis-
lature to raise taxes and
enshrine collective bargain-
ing in the state constitution.
“They vary in severity
US ELECTION
foreign investment have
induced bafflement. This
week’s widely derided
claim was his suggestion
that Mr Obama, having
“sold Chrysler to Italians”
(Fiat), was somehow
responsible for the
company shifting Jeep
production to China.
(Chrysler is restoring
capacity there to sell Jeeps
to Chinese buyers: no US
output is being reduced.)
The Republican has also
claimed that declaring
China a currency
manipulator would
somehow permit him to
impose tariffs on imports
from China. (The relevant
text is Section 3004 of the
1988 Omnibus Trade and
Competitiveness Act: it
says no such thing.)
Mr Obama propagates his
own myths. A series of
critiques of offshoring,
including an assault on the
sensible idea of a
territorial tax system for
companies and attacks on
whom never supported Mr
Obama in the first place,
many see the election of Mr
Romney as the clear choice
to revive the sluggish US
economy.
Whether it was Mr
Obama’s “fat cat” anti-Wall
Street rhetoric, accusations
of heavy handed regula-
tions or the view that an
inexperienced White House
simply had a tin ear on the
needs of business, Mr Rom-
ney’s calls for deregulation
and other business-centric
policies means they are
staunchly backing the
Republican nominee.
But with the election
looking too close to call for
either candidate, the usu-
ally pragmatic business
community is looking
ahead to what another four
years of Mr Obama might
look like with both trepida-
tion and hope that a
fraught relationship could
be improved.
“Most of the financial
services leadership are
hopeful that there will be a
different attitude, a differ-
ent approach and a new
willingness to work with
with proposal two [collec-
tive bargaining] being the
most devastating followed
by proposal five [tax],” he
says. “These are cases in
my view of special interests
trying to go around the leg-
islature.”
The success or failure of
the proposals will send a
message about whether
Michigan – and by exten-
sion other US states – is
governable. They will affect
the ability of municipalities
to manage their strained
finances.
Eric Weber, a Lansing
firefighter and supporter of
proposal two on collective
bargaining, says it is
merely meant to protect the
status quo. “If this passes,
it gives us a sigh of relief
because we can continue to
collectively bargain,” he
says.
Mr Snyder and the state’s
business community claim
that it would sweep away
Mr Romney’s business
career, have conveyed the
impression that foreign
direct investment is a zero-
sum game. Adopting a
meaningless target of
doubling exports, and
touting the alleged job-
creation benefits of
blocking Chinese tyre
imports with tariffs, has
done similar for trade.
Unfortunately, a realistic
debate would involve
admitting that some
international economic
threats are outside any
administration’s influence,
and thus destroy an
implicit pact to maintain
the myth of presidential
omnipotence.
A solemn discussion
about bringing down petrol
prices in the second
Obama-Romney debate on
October 16, for example,
ignored the reality that
they are mainly driven by
movements in global oil
markets. One question
from CNN’s Candy
business leaders to address
some of the fiscal and eco-
nomic challenges the coun-
try is facing,” said one exec-
utive from the banking
industry, who is a Demo-
crat.
Some are pointing to the
looming “fiscal cliff” – a
mix of automatic spending
cuts and tax increases that
will take effect in the new
year if Congress and the
White House fails to act –
as the best chance Washing-
ton has to agree a “grand
bargain” that would fix the
nation’s long-term debt
problem.
Business leaders includ-
ing Jamie Dimon of JPMor-
gan and Jeff Immelt of Gen-
eral Electric support a plan
to cut spending and
increase some taxes that
more closely reflects Mr
Obama’s position on reduc-
ing the deficit than Mr
Romney’s.
“You could argue there is
a real open door for a co-op-
erative approach to address
these issues,” the financial
services executive added.
Bill Daley, Mr Obama’s
former chief of staff, says it
170 other labour laws and
impose a heavy burden on
the public finances.
“What kind of chaos are
you going to get if you wipe
that many laws off the
books?” he asks. “Then
you’re going to end up with
increased cost structures of
a billion dollars plus.”
While proposal two will
show the appetite of Michi-
gan voters for collective
bargaining – after governor
Scott Walker provoked a
storm by limiting similar
rights in Wisconsin – pro-
posal five will test the stay-
ing power of anti-tax Tea
Party movement activists.
The push to require a
supermajority for tax
increases is backed by the
local chapters of Americans
for Prosperity, the conserv-
ative group partly funded
by the Koch brothers, and
Grover Norquist’s Ameri-
cans for Tax Reform.
But in Michigan they are
Crowley, the moderator,
hinted at challenging the
premise: “Is it within the
purview of the government
to bring those prices
down?” But the discussion
was then allowed to
proceed predicated on the
idea that yes, it was.
Naming China a
currency manipulator is
such a non-issue that the
administration, having this
month repeated the trick
of delaying its twice-yearly
currency report, this time
supposedly to take stock at
a G20 ministers’ meeting in
Mexico this weekend, is
not even bothering to send
Tim Geithner, Treasury
Herds of peaceably
grazing policy
wonks have
been left shaking
their heads
From the blogs
Americans will learn
tomorrow whether the
official unemployment rate
has dropped below 7.8 per
cent. The only president
since the 1930s to win
re­election with
unemployment above
7 per cent was Ronald
Reagan in 1984.
This year seems like
1984, with unemployment
on a downward trend.
Then, too, the recession
was a recent memory but
Reagan’s argument that
the difficult medicine had
been taken persuaded
voters to stick with him.
No incumbent president
has been ousted when real
incomes rose in the four
years between elections –
as they have to date. Mr
Obama’s chances may
depend on whether he can
convince voters, as
Reagan did, that the worst
is over.
For the full blog, go to
www.ft.com/ftdata
up against a Republican
governor and the business
establishment. “I view it as
it could derail tax reform or
actual tax reductions,”
argues Mr Snyder, because
the supermajority require-
ment makes it hard to
replace any tax cut with
increases elsewhere.
Scott Hagerstrom, who
heads the Michigan chapter
of Americans for Prosper-
ity, says that is nonsense.
“Politicians don’t like to
have their power taken
away,” he says, arguing
that if the supermajority
existed, some objectionable
‘What kind of chaos
are you going to
get if you wipe
that many laws
off the books?’
FINANCIAL TIMES THURSDAY NOVEMBER 1 2012
secretary, to the gathering.
Attempts to turn the G20
camp into a global posse to
go after currency
misalignments – a more
constructive idea – have
largely failed.
And the biggest risk to
the global economy, the
eurozone crisis, has hardly
been discussed in the
campaign, perhaps because
even bringing it up would
underline US helplessness.
Its standing weakened by
its inability to raise from
Congress a contribution to
the International Monetary
Fund, Mr Obama’s
administration has largely
watched the shambles
unfold from the sidelines.
No matter who is
elected, absent a slide back
into global recession, the
administration’s
international economic and
trade policy will probably
remain as intermittently
inflammatory talk, rather
more modest actions.
Washington will continue
is unrealistic to think that
Mr Obama and the business
community will ever be
singing “Kumbaya”
together even though
achieving real deficit reduc-
tion would in and of itself
“reset” the relationship.
If the president is re-
elected, Mr Daley says, “the
business community will
have to get over the fact,
many of whom have
[always] had an aversion to
him, that he is president”.
There will be critical
areas of common interest,
even beyond the fiscal cliff.
Mr Daley says immigration
reform, which Mr Obama
recently said would be a
priority, would be welcome
by the business community,
which has a “real” and
“honest” interest in getting
it done. He adds: “Will they
ever love him? No, I don’t
think so. And he may never
love them.”
Jack Gerard, a lobbyist
for the energy industry in
Washington, says Mr
Obama has “evolved consid-
erably” over the past four
years to now “embracing”
gas resources and
taxes would never have
passed in the first place.
Ballot proposals are hard
to poll, but a mid-October
survey by FMW for Fox 2
News Detroit suggests that
all six are close, with the
collective bargaining pro-
posal in the balance. Pro-
posal five seems more likely
to fail, along with proposal
three, which would require
Michigan to get 25 per cent
of its energy from renewa-
ble sources by 2025.
The most remarkable pro-
posal on the ballot is
number six, to require a
public vote on any new
bridge or tunnel between
Michigan and Canada, a
campaign lavishly funded
by the private owners of the
Ambassador Bridge, the
main border crossing from
Detroit. Mr Snyder is back-
ing a new bridge that would
be funded by the Canadian
government. He has wide-
spread business support.
to press Beijing over
floating the exchange rate,
as it has for a decade, and
China will let the renminbi
appreciate when it judges
it in China’s interest, as in
2005-08 and since 2010.
The US may or may not
sign a trade deal or two
that will help a few special
interests but won’t do
anything discernible to the
trade balance. There will
continue to be no explicit
manipulation of the dollar,
though the rhetoric around
exchange rates may be
volatile. Doha will still be
dead.
And, most likely, we’ll be
back here four years from
now, with the challenger
accusing the incumbent of
selling out to China and
letting jobs be shipped
overseas and the
incumbent, by accepting
the premise of the attack,
ensuring another debate on
the global economy that
takes place at an oblique
angle to reality.
AP
“acknowledging” that oil
and gas play a vital role in
energy security.
“If he wants to continue
with populist politics, he
may continue to isolate the
business community. But if
he is serious, I believe he
would make a hard pivot to
embrace the investments
that could come from the
business community if they
had confidence and cer-
tainty in the rules of the
road,” Mr Gerard says.
Mr Obama’s position on
energy in a potential second
term and his appointments
to top economic and busi-
ness posts would be closely
monitored for any signs of a
change in favour of busi-
ness.
But there is one other fac-
tor the business community
is probably looking for. In
the event that Mr Obama
does pull off a victory next
Tuesday, it will largely be
thanks to his supporters on
the left, including unions,
not the Wall Street backers
who championed him four
years ago.
Additional reporting by
Ed Crooks in New York
“From our perspective,
the owners invested in good
faith and spent a lot of their
own money on this border
crossing and made it the
most efficient in the coun-
try,” says Dan Stamper, the
president of the bridge com-
pany. “And then to have
government come in and
say ‘we have to prop up a
competitor’ . . . that’s not
competition.”
The battle over proposal
six will be a pure test of
whether millions of dollars
in TV advertising allow a
private company to get
what it wants out of the US
political system. At the
moment, polling shows that
proposal is likely to pass,
although the bridge com-
pany’s lead is falling.
Mr Snyder decries the
ads. “The only accurate
piece of information in
those ads are . . . yes, there
is a bridge and yes there is
a state of Michigan.”
FINANCIAL TIMES THURSDAY NOVEMBER 1 2012 ★ 5
6 ★
Reform and
budget votes
challenge
Greek MPs
Parliament
Prime Minister
Antonis Samaras is
asking for support
of even harsher
austerity measures,
writes Kerin Hope
Greece’s three-way coalition
government already looked
perilously unstable even
before Yannis Stournaras,
its technocrat finance min-
ister, delivered his budget
yesterday, forecasting a
continuing deep recession
next year and only a
modest decline in the
general government deficit.
But on November 11 the
government of conservative
prime minister Antonis
Samaras faces a critical
vote in parliament on both
the revised budget and a
three-year structural reform
package negotiated with
international lenders.
The two biggest trade
unions, representing civil
servants and public sector
corporations, responded to
the budget yesterday by
calling a two-day strike for
next week, which will set
the stage for a parliamen-
tary cliffhanger.
Even if the 16 lawmakers
belonging to the Democratic
Left, New Democracy’s jun-
ior partner in coalition,
were to defect, the govern-
ment could still push
through the budget and
structural package as it
would retain an overall
majority of 10 seats.
However, if the leadership
of Pasok, the socialist party,
were to lose control of its
deputies, then Mr Samaras
would look vulnerable.
Pasok leader Evangelos
Venizelos, a former finance
minister, is ready to back
the government on both
counts, but faces a looming
rebellion in his own ranks
over the party’s falling pop-
ularity in opinion polls.
Four of the 33 socialist
deputies have threatened to
abstain or even vote against
the measures on November
11, in a move aimed at
unseating Mr Venizelos.
One moderate socialist
lawmaker said: “What will
hold them back, we hope, is
the prospect of being held
responsible for plunging
Greece into a chaotic
default and prolonged polit-
ical instability if they
destroy the bailout deal.”
Mr Samaras lost patience
earlier this week with Fotis
Kouvelis, leader of the Dem-
ocratic Left, over his refusal
during the past few weeks
to accept labour market
reforms demanded by the
EU and International Mone-
tary Fund, and announced
the tortuous four-month
negotiations were done.
Mr Kouvelis, whose party
is a pro-Europe ex-commu-
nist splinter group, made
clear he would stick to his
guns, implying the premier
could no longer count on its
support.
Mr Samaras is impatient
to put the vote behind him
and win disbursement of a
€31.5bn loan tranche to
recapitalise Greek banks, a
move that would in turn
unlock lending to cash-
Debt debate
Greek government debt
As % of GDP
Bailout agreed (Mar 2012)
New Greek budget (31 Oct 2012)
200
180
160
140
120
100
2006 08 10
Source: OECD, Greece finance ministry
strapped Greek companies,
including many exporters.
The funding injection
would also allow the
government to pay down
about half the €7bn of
arrears owed to local suppli-
ers by December, giving a
boost to market confidence.
A senior government offi-
cial said: “It is frustrating
that the leftwingers and
also to some extent the
socialists have slowed down
a deal with the troika [the
EU, IMF and European Cen-
FINANCIAL TIMES THURSDAY NOVEMBER 1 2012
EUROZONE WOES
Approved: Greek MPs vote
Italy’s central
yesterday for a key
banker fears
privatisation law AFP
‘vicious circle’
By Giulia Segreti its highest since 1999,
and Guy Dinmore in Rome reaching 10.8 per cent in
September, up from 10.6 per
Italy’s economy risks a cent in August.
“vicious circle” of weak High jobless levels in Sic-
growth and lack of confi- ily, nearly double the nat-
dence, the governor of the ional average, were seen as
Bank of Italy has warned as a big factor behind the low
unemployment rose to its turnout in regional elec-
highest level for 13 years tions last weekend, fuelling
while its recession deep- support for the anti-estab-
ened. lishment Five Star Move-
More than 35 per cent of ment, which opposes Mr
young Italians are out of
work as factory closures,
Monti’s austerity
gramme and, according to
pro-
bankruptcies and public opinion polls, is emerging
sector cuts fuel a nation-
wide backlash against the
as the second most popular
party nationwide behind
austerity policies of Mario the centre-left Democrats.
Monti’s technocrat govern-
ment ahead of general elec-
Expressing the fears of
foreign investors over the
tions early next year. prevailing political uncer-
Speaking at a banking tainty in Italy, Giuseppe
Government deficit GDP growth conference in Rome, Ignazio Mussari, president of ABI,
As % of GDP Annual % change Visco, central bank gover- the national banking associ-
nor, praised Mr Monti’s ation, urged politicians con-
structural reforms for hav- testing the next elections to
0 6 ing “stopped the loss” of “remove doubts with
market confidence in Italy. regards to their firm adhe-
-2 4 With an eye to whoever sion to the public finance
-4 2 forms the next government, targets established by the
he said budget targets must European Union and to the
-6
0 be respected and reforms policies pursued by the
-8 implemented. Monti government”.
-2 Nonetheless, Mr Visco His remarks were appar-
-10
-4 warned of difficult times ently aimed at Silvio Ber-
-12 ahead, with reforms only lusconi, former prime min-
-14 -6 having an effect in the ister and leader of the main
“medium term” and the centre-right party People of
-16 -8
government planning more Liberty, who attacked Mr
12 14 16 2006 08 10 12 14 16 2006 08 10 12 14 16
Forecasts Forecasts Forecasts
austerity measures to Monti’s economic policies at
finance a public debt of the weekend and said his
€2tn – or 126 per cent, sec- party should reconsider its
ond only to Greece in the support for the unelected
eurozone as a percentage of government.
tral Bank] in order to sat- pushed recovery further marginal 0.4 per cent of economic output. Pierluigi Bersani, leader
isfy their own party constit- into the distance. national output, down from “There is the risk of a of the centre-left Demo-
uencies. The important The economy is projected 1.1 per cent in the earlier vicious circle – little growth cratic party, has suggested
thing is to get the money to shrink by 4.5 per cent not draft. and falling savings, families the next government should
and start work on trying to 3.8 per cent next year, and Deflation also looms in feel uncertain and growth renegotiate Italy’s 2013
turn the economy around.” the government deficit to 2013, for the first time in drags further,” Mr Visco budget deficit target,
One encouraging sign, stall at 5.2 per cent of Greece’s five-year recession. said. imposed by the European
observers said, was yester- national output compared But many Greeks say Italy fell back into reces- Central Bank and the Bank
day’s approval by parlia- with 4.2 per cent under a they will welcome a fall in sion in the second half of of Italy on Mr Berlusconi’s
ment of a controversial previous budget draft sub- consumer prices, which 2011 and the government previous government before
privatisation law allowing mitted only one month ago. continued to rise despite a reckons the economy will its collapse last November.
the government to sell 100 Greece is still forecast to cumulative 20 per cent loss contract 2.4 per cent this The Italian economy
per cent of its stake in achieve a primary budget of output because of an year and 0.2 per cent in would start growing in the
state-owned companies. surplus – before payments entrenched system of price 2013. second quarter of 2013, Vit-
But the downwardly of interest on debt – but it cartels operated by local The latest figures show torio Grilli, finance minis-
revised budget figures have would amount to a producers and importers. unemployment jumped to ter, said yesterday.
FINANCIAL TIMES THURSDAY NOVEMBER 1 2012
Draghi expands role in f ight to save euro
Debt crisis
One year in office,
the ECB chief has
stopped the rot but
prospects for the
bloc remain dire,
says Michael Steen
Like a company chief exec-
utive feted by analysts for
stopping losses but who has
failed to generate share-
holder returns, Mario
Draghi still has much to
prove as he enters his sec-
ond year in office.
Formally, his job as presi-
dent of the European Cen-
tral Bank is to ensure he
guides interest rates so
prices neither rise nor fall
precipitously over the
medium term. On that
measure he has been suc-
cessful, so far.
Informally, however, his
task has become that of a
commanding general in the
battle to rescue the euro.
One year after Mr Draghi
took office, Spain’s cost of
borrowing relative to Ger-
many’s is greater than it
was then. The economic
outlook is dire for the 17-
country bloc, and govern-
ments are still struggling to
formulate a coherent politi-
cal response to the sover-
eign debt crisis.
After quoting a compari-
son of the euro to a bumble-
bee – “it shouldn’t fly but
instead it does” – at an
investment conference in
London on the eve of this
summer’s Olympic Games,
Mr Draghi made clear that
under his presidency the
bank would not take a nar-
row view of its responsibili-
ties.
“Within our mandate, the
ECB is ready to do what-
ever it takes to preserve the
euro,” he said, pausing for a
moment before adding:
“And believe me, it will be
enough.”
Two people with knowl-
edge of the situation said
that Mr Draghi, a US-
trained economist who
spent 10 years at the Italian
Unknown territory: president’s first steps
Spain 10-year government bond yield
Spread over German Bunds (basis points)
600
550
Nov 1 Late Dec
Mario Draghi takes over ECB offers €489bn in
as ECB president from three-year loans to
Jean-Claude Trichet banks, so-called LTROs
(above)
500
Feb 2012
Second round of
€530bn of LTROs
450
400
350
300
Nov Dec Jan Feb Mar
2011
Source: Thomson Reuters Datastream
Treasury before heading the
More at FT.com country’s central bank, had
not told the ECB’s
22-strong interest governing
●Cover your shorts council that he planned to
The EU ban on uncovered utter those words.
shorts comes into effect As a result, one expected
today. Lex’s Stuart Kirk the governing council meet-
and Nikki Tait discuss the ing a few days later to be
new world for trading and stormy.
hedging in the eurozone But despite strong opposi-
www.ft.com/lexvideo tion from Jens Weidmann,
Bundesbank president, to a
●In-depth new bond-buying pro-
News and analysis on gramme, by September Mr
the eurozone crisis Draghi was ready to
www.ft.com/eurozone announce “outright mone-
tary transactions” with the
★ 7
EUROZONE WOES
Apr
LTRO effect wears off
as markets focus on
Spain and Italy
Apr May
2012
backing of the 16 other
national central bank chiefs
and his four executive
board colleagues.
The scheme has been
hailed as a breakthrough
that pits anyone speculat-
ing on a euro break-up
against the full might of the
central bank.
With no country yet to
sign up for the fiscal condi-
tions that would allow the
bank to deploy the mecha-
nism, it has already had a
demonstrable effect in low-
ering the borrowing costs of
countries such as Spain and
Jul 26
Draghi promises to do
‘whatever it takes’ to
save the euro
Sep
ECB unveils outright
monetary transactions
programme
Mario Draghi,
European Central
Bank president
Jun Jul Aug Sep Oct
Photo: Reuters
Italy from their summer predecessor. That bond-
peaks. buying programme, the
As such, OMT could yet securities market pro-
be seen as the masterstroke gramme, or SMP, similarly
that turned the crisis horrified German central
around – unlike the €1tn in bank policy makers, and
three-year loans dubbed was hobbled as a result.
LTROs extended to banks OMT has been designed
earlier in the year that ini- to address many of the
tially charmed financial problems of the SMP. It
markets before their effects comes with fiscal conditions
wore off. attached, it is unlimited in
But, as bank insiders scope, it focuses on shorter
point out, the OMT scheme maturity bonds, and it
bears great similarities to comes with a monetary pol-
another three-letter acro- icy narrative seeking to
nym pioneered by Jean- explain why a central bank
Claude Trichet, Mr Draghi’s whose mandate is price
stability should be buying
sovereign debt.
It also comes with the
German criticisms con-
tained and isolated. Mr
Draghi does not have to
contend with Axel Weber,
the former Bundesbank
president who had been the
favourite to succeed Mr Tri-
chet, or Jürgen Stark,
former executive board
member. Both were fierce
proponents of the classical
Bundesbank doctrine that a
central bank focuses solely
on controlling inflation.
Instead, Mr Draghi has
the support of Jörg Asmus-
sen, the current German
member of the executive
board, and has won the
tacit backing of Angela
Merkel, the German chan-
cellor.
Structural reforms and
reshaping economic govern-
ance in the eurozone are
clearly beyond the ECB’s
mandate. Jean Pisani-Ferry,
director of the Bruegel
think-tank, says Mr
Draghi’s success thus far
has been in establishing a
division of labour between
politicians and the central
bank policy makers.
“He has managed to tell
governments: you do your
job, I do my job,” Mr Pisani-
Ferry said, noting that Mr
Draghi’s ability to do so
was not assured from the
outset.
“Trichet was present at
the creation so he was able
to talk to them as a found-
ing father, whereas Draghi
was for them just another
central banker.”
Even Mr Draghi’s critics,
who believe the central
bank has been forced into
territory it should not
occupy by the failure of pol-
iticians to deal with the cri-
sis, concede he has created
breathing room for struc-
tural reforms in the weaker
eurozone countries.
Jörg Krämer, Commerz-
bank’s chief economist, is
pessimistic, but says: “If
there is a breakthrough, the
history books will write
about Draghi as the hero
who gave the reforms time
to work.”
Unemployment
Jobless total
in bloc hits
new high
Unemployment in the
eurozone hit a record level
in September, with 18.5m
people out of work. It is
the latest sign that the
debt crisis is far from
abating, write James
Fontanella-Khan in
Brussels and Michael
Steen in Frankfurt.
Joblessness in the 17-
country bloc increased to
11.6 per cent in September
compared with 11.5 per
cent in August – much
higher from a year earlier,
when the rate was 10.3
per cent, says Eurostat,
the EU’s statistical office.
It was not the only
gloomy news from the
single-currency area. The
European Central Bank
released a survey that
showed banks were
making it tougher for
companies to borrow by
tightening credit standards
as their perception of the
riskiness of lending rose.
The survey of 132 banks
showed that they expected
borrowing conditions to
tighten still further over
the final three months of
the year, even though
their own funding situation
has improved, with lenders
reporting better access to
both retail and wholesale
funding.
The pessimistic data
underscore the impact of
the eurozone crisis on
business in the region.
Deteriorating business
confidence and worsening
global demand forced
146,000 more people out
of work in September
compared with August,
bringing the overall tally to
18.5m – 2.2m more than a
year ago.
This record jobless rate
comes on the back of job
cuts announced at Swiss
bank UBS in the past
week, making the outlook
bleak. Analysts expect
joblessness to rise further.
In full,
www.ft.com/eueconomy
8 ★
Palestinian factions lock horns in Syria
Arab uprising Rising tension
Rival militias are
taking up arms
against each other
in the nation that
gave them refuge,
writes Michael Peel
Long-feared violence
between factions of Syria’s
large Palestinian population
has moved a step closer, as
rival militias prepare to
face off in a strategically
important Damascus dis-
trict heavily populated by
refugees.
Rebels fighting against
President Bashar al-Assad’s
regime said yesterday that
they had set up a Palestin-
ian group to battle a pro-
government armed Palestin-
ian brigade in Yarmouk
camp, which is at the heart
of a struggle for the capi-
tal’s southern suburbs.
A confrontation would
bring to a head tensions
among Syria’s estimated
500,000 Palestinians, who
are grateful for the haven
the country has offered in
the past but have grown
divided over the 19-month
uprising against the
government.
“The regime has been try-
ing to enlist the Palestini-
ans, and the rebels have
been trying to do the
same,” said Hilal Khashan,
professor of political science
at the American University
of Beirut. “As the civil war
in Syria continues to
unfold, I think the Palestin-
ian fratricide will be a
chapter.”
Syrian rebels said they
had armed Palestinians to
fight a militia run by
Ahmed Jibril, head of the
Syrian government-backed
Popular Front for the Liber-
ation of Palestine-General
Command. Mr Jibril’s group
has for some time control-
led security in Yarmouk
camp, a community of
apartment blocks and shops
thought to be home to
150,000 Palestinians, as well
as many Syrians.
Antagonism has been
growing in Yarmouk as it
has suffered during the war
waged since July by regime
forces on rebels who moved
into areas of south Damas-
cus. Yarmouk is hemmed in
by conflict zones and by
late September was bearing
the scars of shells itself,
after loyalist forces bom-
barded its edges in pursuit
of rebel fighters.
On one street close to
Yarmouk’s border with the
rebellious Tadamon district,
a man pointed to an oval
crater in the road made by
a shell that he said had
killed his cousin in August.
“He was standing there,
and we found his body at
the end of the shop,” he
said, pointing down the
length of a butcher’s
premises, where the force of
the blast had torn large
chunks of plaster from the
ceiling.
An activist known as Abu
Raas said people in Yar-
mouk were also angry with
the regime because it had
killed many Palestinians
who were simply in the
wrong place at the wrong
time, including 20 who died
in an attack on the neigh-
bouring district of Hajar al-
Aswad. “They weren’t tar-
geting them because they
were Palestinian but
because they were in the
area,” he said.
WORLD NEWS
Yarmouk Palestinians
said that anti-regime feeling
had been stoked further by
an ill-fated trip organised in
June last year by the Jibril
militia to protest against
Israel’s occupation of the
Golan Heights.
At least nine Palestinians
from Yarmouk died at the
demonstration. When anti-
regime chanting began at
their funerals, 20 more peo-
ple were killed as militia-
men opened fire, activists
said.
Yet more Palestinians
have turned against the
Assad regime simply
because they see its ruling
Alawite religious minority
clique as targeting their fel-
low Sunni Muslims, who
make up the majority of the
country’s population.
In a sign of deteriorating
sectarian relations, the Pal-
estinian Islamist Hamas
group closed its Damascus
office earlier this year.
Yarmouk’s troubles have
added a new dimension to
the complex relationship
between Palestinians and
Syria, which has been one
of the few countries in the
region to admit them in
large numbers after the cre-
ation of Israel in 1948.
While some Palestinians
have in the past expressed
gratitude to the 40-year-old
Assad family regime, others
give no credit to a dictator-
Little reward in sight for army of poor
labourers building the new India
Development dash
The construction
industry is thriving
on a vast, mobile
workforce living in
squalor, writes
Amy Kazmin
For almost 15 years, Ram-
bai, a sari-clad labourer
from a north Indian village,
has lived like a refugee in
her own country – shelter-
ing under a plastic tarpau-
lin, cooking over an open
fire and struggling for
amenities such as clean
water and electricity.
She and her husband
have moved often – to dif-
ferent states, and across
India’s vast capital – endur-
ing a harsh existence. After
much hardship, they man-
aged to send their daughter,
now 17, back to their village
so she could go to school.
But Rambai and her fam-
ily are no idle drifters. They
are part of an army of
workers who are literally
building the new India,
Amid national promises of
a better future, they have
little to show for their toil.
“We are barely able to
meet our daily expenses,”
says Rambai, as she rolls
chapatis in front of her blue
tent in Defence Colony, an
affluent neighbourhood in
the heart of New Delhi. “We
construct these big houses,
and then the residents come
and chase us away.”
India’s Congress-led gov-
ernment often talks of the
need for “inclusive growth”,
and has established large
social welfare schemes to
prevent the rural poor from
being left behind.
The growth spurt of the
past two decades has cre-
ated tens of millions of
urban jobs, absorbing vil-
lagers from remote rural
areas on the hot, dusty
building sites of a booming
construction industry.
For the most part,
though, these unskilled
workers – recruited by
labour agents, sent to far-off
places and barely aware of
their rights – are living and
working in squalid condi-
tions that the government
has shown little will, or
ability, to improve.
“Construction is the
ship that they say oppresses
Syrians and non-Syrians
alike.
“We are Syrians, but
without nationality,”
laughed another activist,
known as Samih. “They
beat Syrians like they beat
Palestinians: there is no
difference.”
Syria’s armed opposition
now wants to challenge the
authority of the Jibril
armed group’s patrols and
checkpoints on Yarmouk’s
streets, where children
seem to play table football
on every corner. The mili-
tiamen carry identity cards
and are officially neutral,
letting neither government
nor rebel forces into the
bridge to non-farm jobs for
many farm labourers
because India has not cre-
ated enough manufacturing
jobs,” says Manish Sabhar-
wal, chief executive of
Teamlease, a human
resources company. “This is
a process of transformation,
but it’s messy.”
Roughly 44m Indians
work in construction – up
from 18m a decade ago.
According to the labour
ministry, construction jobs
have increased faster than
any other type of employ-
ment since economic liber-
alisation began in 1991.
Building workers account
for 9.6 per cent of the total
labour force, up from 5.6
per cent in 2005, and 3.1 per
cent in 1994. Factory work-
ers have remained at 11 per
cent over the same period.
The construction industry
has been resilient, expand-
ing at a compounded rate of
11 per cent for the past
eight years, despite a slow-
down in India’s economy.
Building jobs are expected
to multiply in the future, if
impediments to large-scale
infrastructure projects are
removed. “In China, con-
struction workers went to
20 to 25 per cent of the
labour force at the peak,”
says Mr Sabharwal. “We
could be heading that way.”
Yet unskilled building
jobs hardly offer upward
mobility. Jobs are short-
term. Herded from one site
to another, workers – often
with children in tow – live
in temporary camps, with-
out access to services such
as healthcare or schooling.
Most toil in rubber flip-
flops without basic safety
equipment, while their chil-
Hard labour: a woman toils on a Mumbai building site. Many
workers live in temporary camps on poor pay
FINANCIAL TIMES THURSDAY NOVEMBER 1 2012
‘We are Syrians,
but without
nationality. They
[the regime] beat
Syrians like they
beat Palestinians:
there is no
difference’
Samih
Palestinian activist
‘If no one attacks
from outside,
I am sure the
Palestinians will
start fighting
each other.
Killing, blood,
revenge – what
will happen then?
Hussein
Jibril militiaman
Battleground: Yarmouk in
south Damascus, home to
many Palestinians, bears the
scars of clashes between
rebels and regime troops AP
area – though some
residents claim they favour
loyalists and allow them to
pass.
One of Mr Jibril’s militia-
man, named Hussein, said
that even the group itself
was now strained, with
some members – including
Hussein himself – having
turned against the regime
during the conflict.
And he spoke with a
pessimism that seems dan-
gerously close to being
borne out.
“If no one attacks from
outside, I am sure the Pales-
tinians will start fighting
each other,” he said. “Kill-
ing, blood, revenge – what
will happen then?”
dren, usually barefoot, play
alongside them in the site’s
dirt and debris.
Mr Sabharwal says the
poor conditions reflect the
failure of Indian cities to
provide affordable housing
or public transport for the
working classes. “The
squalor during construction
is really a symptom of an
urban problem: there is no
way for them to live at the
edge of the city and com-
mute,” he said.
Abuses are rampant. In
April, nearly 1,000 migrant
workers were discovered in
Bangalore, India’s IT capi-
tal, toiling in slave-like con-
ditions on a huge project
for the Army Welfare Hous-
ing Organisation. Workers
were kept in locked sheds,
paid a pittance and beaten
if they complained.
Even in less extreme
cases, social activists say,
workers’ rights, including
minimum wage require-
ments, are routinely tram-
pled by contractors who
have little incentive to obey
Indian employment
Distribution of workers
by industrial sectors (%)
70
60
50
40
Agriculture
30 Manufacturing
Construction
20
10
0 building. New flats sell for
1995 2000 2005
Fiscal years
Source: Indian Ministry of Labour
& Employment
AFP
UAE gold
trade lifts
Turkey’s
exports
By Daniel Dombey
in Istanbul
The United Arab Emirates
has confirmed its place as
Turkey’s leading export
market, with precious met-
als driving sales thanks to
Iranian demand for gold.
The UAE is a traditional
entrepôt for Tehran, where
demand for gold has soared
this year as Iran has scram-
bled to hedge against a fall-
ing currency, rising infla-
tion and international sanc-
tions against Iranian banks.
Trade figures for Septem-
ber, released yesterday,
show “precious stones and
metals”, principally gold,
were Turkey’s biggest
export for the month, at
$1.6bn of sales, well ahead
of vehicle sales at $1.15bn.
For a second consecutive
month, the UAE accounted
for the highest amount of
export sales, with $1.4bn,
ahead of Germany, with
$1.1bn. The UAE’s tally rep-
resented a 450 per cent
increase compared with
September 2011, fuelled by
$1.14bn in gold sales.
Turkey is not a signifi-
cant gold producer but the
country moved this year
from being a net importer
of the metal to a net
exporter. Many Turks have
a tradition of keeping sav-
ings in gold and Erdem
Basci, the central bank,
governor put the country’s
total stock at $115bn.
After several months this
year when Iranian gold pur-
chases from Turkey topped
$1.4bn, attracting scrutiny
from the US, which is keen
to deepen Tehran’s isolation
because of a dispute over its
nuclear programme, Iranian
buyers appeared to begin
using the UAE as a conduit
in August, when the coun-
try suddenly rose to the top
of the list of countries
buying Turkish goods and
services.
labour laws, given the
almost non-existent enforce-
ment and minuscule fines
for violation. Unions have
almost no presence among
the ever-shifting workers.
“Construction companies
are flouting rules, and the
penalties for violations are
really minimal,” says
Moushumi Basu, an activist
from the People’s Union for
Democratic Rights.
The labour ministry
admits that “poor working
conditions, low wages and
inadequate provision for
social security” are prob-
lems in construction, along
with “significant wage dif-
ferentials” between men
and women. But the sector
is viewed as an important
source of future job growth.
The government has
sought to create a social
safety net for construction
workers, with special wel-
fare boards in each state,
funded by a tax of up to 2
per cent on building costs.
The boards are meant to
help with medical expenses,
scholarships for children,
pensions and even home
loans. But few workers
know they exist, let alone
how to access their benefits.
Defence Colony, home to
retired army officers and
their scions, is being trans-
formed, as builders knock
down two-storey homes and
replace them with four-
storey apartment blocks.
Property owners receive
up to $6m for selling plots,
or take a combination of
cash and flats in the new
2010 about $1.5m, or are rented
out for $4,000 or more a
month. With building costs
at about $500,000 for each
four-storey block – in part
because of low labour costs
– profits are significant.
Workers are not sharing
in this bounty. Rambai,
who has been working on a
municipal project to lay a
sewer in Defence Colony for
the past two months, says
she gets only Rs200 ($3.72)
per day, below New Delhi’s
Rs270 minimum wage. A
woman working on a swish
new building nearby says
she receives only Rs155. Her
children scrabble in the dirt
– their prospects for an edu-
cation bleak.
“We are just poor people,”
says Rambai. “Who is going
to bother about us?”
FINANCIAL TIMES THURSDAY NOVEMBER 1 2012
South Asia
A tight grip on the controls
S
ri Lanka has three commonly
Boosted by spoken languages: Sinhalese,
Tamil and English. But anyone
investment from driving towards the soon-to-
open Hambantota International Air-
port in the nation’s south could be
China, Sri Lanka forgiven for thinking a fourth had
crept in, given the frequency of Chi-
has become an nese road signs.
Set up to guide teams of immigrant
exemplar of labourers building new highways,
these are far from the only harbingers
postwar of a newly arrived influence. At the
airport itself, which is being financed
with a $209m Chinese loan, a red and
development but gold starred flag flutters above the
workers’ housing.
critics say the President Mahinda Rajapaksa hopes
the project will usher more visitors on
government is to the tropical island’s famed beaches
when flights begin arriving early next
year. But it is also part of a larger
trampling on civil vision. His government is racing to
build infrastructure, much of it
rights in its drive funded and built by Chinese compa-
nies, to relaunch the economy after
for growth. more than two decades of civil war.
Hambantota, a small coastal town
By James Crabtree that also happens to be Mr
Rajapaksa’s political base, already
boasts a controversial (and so far lit-
tle used) new port, built with $1.4bn of
Chinese loans. A gleaming 35,000 seat
cricket stadium also opened nearby
last year.
These will soon be joined by a con-
vention centre, an oil refinery, tourist
hotels and business parks, all
designed to attract foreign investment
and transform this war-scarred nation
of 21m into what Mr Rajapaksa likes
to call “the emerging wonder of Asia”.
Still, his vaunted post-conflict ren-
aissance is also sparking unease.
Western governments and New Delhi
‘Colombo is forsaking
the pluralism of south
Asia for an east Asian
model where nothing
blocks development’
fear creeping Chinese influence in the
strategically-located island. Activists
also worry that his drive for growth is
coming at a cost: a backsliding on
democracy and critical civil rights.
These latter fears will be aired
tomorrow as the country is set for an
uncomfortable public review at the
UN human rights council in Geneva.
Concerns voiced there are likely to
include threats to press and judicial
freedom by an increasingly autocratic
government dominated by Mr
Rajapaksa’s family, alongside falter-
ing progress on reconstruction and
reconciliation in the island’s military-
dominated north.
Behind these lurk a deeper source
of anxiety: the unresolved questions
of war crimes, allegedly committed by
government forces during their
bloody victory against the Tamil
Tiger rebels in May 2009, in which as
many as 40,000 civilians were killed.
Sri Lanka has emerged as not just a
global test-case of how to spur growth
after a conflict but also a closely
watched swing state where the US
and India are vying with China for
influence.
At such a decisive moment, any ero-
sion of civil society could frighten
away international investors just as
the postwar boom is showing signs of
coming off the boil. In turn, this could
prompt Sri Lanka to turn further from
the west.
“This government is leaving behind
the kind of boisterous, pluralist poli-
tics typical of countries in south
Asia,” says Paikiasothy Saravanam-
uttu, head of the Centre for Policy
Alternatives, a Colombo-based
research group. “Instead it wants a
more east Asian model, where noth-
ing gets in the way of development.”
Sri Lanka’s new era started on May
19 2009, when Mr Rajapaksa delivered
a speech many in his country feared
they would not live to hear. Hailing a
decisive victory over the Liberation
Tigers of Tamil Eelam rebels, he
marked the end of a war that had long
divided the mostly Buddhist Sinhalese
southern majority from the minority
Hindu Tamils in the north.
The ensuing celebrations propelled
the charismatic Mr Rajapaksa to a
resounding second election victory
the following year, while swift post-
war economic expansion raised hopes
of a sustained “peace dividend”.
Sri Lanka’s economy grew by 8 per
cent in each of the two years follow-
Speed read ing the war, boosted by investments
in highways and ports, along with
●Under the lens Sri Lanka is set for a expanding traditional industries such
tough review at the UN rights council as garments and tea. Tourism recov-
today, facing allegations that Colombo
is becoming more repressive
ered quickly, a fact visible in con-
struction projects along the seafront
of the capital Colombo.
●Growth surge After the conflict, In late October, the US-based Hyatt
Sri Lanka’s economy grew 8 per cent group joined hoteliers including Sher-
in both 2010 and 2011 but growth is aton and Shangri-La in announcing
expected to slip to 6 per cent in 2012 plans to enter the market. One million
tourists are expected this year, a fig-
●Delhi’s fears India watches Sri Lanka ure the government says can grow to
anxiously, fretting about growing 2.5m by 2015, while Lonely Planet has
Chinese influence and about domestic put Sri Lanka at the top of its list of
pressures from its own 61m Tamils desirable holiday spots for 2013.
Moves to welcome more foreign
investors are also progressing well.
The most recent World Bank Ease of
Doing Business index saw the island
On the web improve again, to 81st place, the high-
est-ranked country in south Asia.
beyondbrics For more news, comment P. B. Jayasundera, the country’s most
and analysis on emerging markets, senior economic technocrat, says he
including south Asia, go to thinks foreign direct investment can
www.ft.com/bb also rise to $4bn by 2016, a fourfold
increase over last year.
For all this, there are signs that Sri
★ 9
ANALYSIS
Lanka’s exuberant postwar boom is
cooling after sharp increases in inter-
est rates earlier this year, designed to
protect a weakened currency and
stem inflation.
The stock market has fallen
sharply, following hikes in tariffs to
tackle a worrying trade gap, as
imports sucked in by the growing
economy depleted limited foreign
reserves. The result is an economy set
to grow by just over 6 per cent this
year, alongside rising public discon-
tent over increased living costs, which
has sparked riots and strikes.
“We have taken tough measures in
2012 and growth will moderate,” says
Ajith Cabraal, governor of the central
bank. “But the government has set
the stage for more foreign investment
by building new roads, ports, and air-
ports . . . we will see more momentum
in 2013.”
Even if growth does return, how-
ever, much more will be needed to
spur recovery in the war-scarred
north. The streets of Jaffna, the
region’s capital, do show limited signs
of prosperity, with an HSBC bank
branch sitting alongside new mobile
telephone and electronics shops.
But elsewhere, signs of older battles
remain all too visible, especially
around Mullaitivu, the battered town
that played host to the war’s grue-
some final battle, where roadsides
remain littered with burnt-out vehi-
cles and bullet-riddled buildings.
Sri Lanka’s government points to
new highways and a railway that will
INDIA
Pa l k Jaffna
S t ra i t
Kilinochchi
Mullaitivu
Wanni
MenikTunnukai
Gulf of Farm INDIAN
Mannar
SRI OCEAN
LANKA
Colombo
100 km
Hambantota
Post­conflict forces
The military moves into moneymaking
Last month Basil Rajapaksa, the
president’s younger brother, opened a
mall in a revamped colonial­era
racecourse in the centre of Colombo,
the Sri Lankan capital. Yet instead of
viewing renovations undertaken by
skilled local craftsmen, the economic
development minister admired work by
a less expected group: the army.
In the three and a half years since
the war against Tamil Tiger rebels
ended, the military has arguably
increased its hold on national life.
There is little sign of troop levels
falling, a record budget increase is
promised next year and moneymaking
operations spread in a range of
directions.
In the north, where most of the
forces remain stationed, the army runs
soon link the region more closely to
the rest of the country but there are
few examples of big private invest-
ments that could bring jobs and hope
to the struggling population.
“People here say grudgingly that
life has improved, but it is grudging,
because things could have been much
better,” says Jehan Perrera, head of
the National Peace Council, a cam-
paign group, while pointing to scant
progress on political reforms to deal
with feelings of injustice that fuelled
the conflict.
W
hile the combination of a
demoralised Tamil popu-
lace and continuing close
scrutiny from Sri
Lanka’s military lead most analysts to
believe a return to arms is highly
unlikely, demands for devolution of
power remain strong. Meanwhile, the
government has steadfastly refused a
full investigation into claims of war
crimes, despite a resolution passed in
March by the UN Human Rights
Council urging it to do so.
Indeed, far from moving to placate
such demands, many observers say
Mr Rajapaksa is moving in the other
direction, with fresh threats to judi-
cial independence and recent moves
to centralise yet more power in the
hands of his family, notably his broth-
ers Gotabhaya and Basil, who control
the army and economic development
respectively.
“Things are definitely getting
worse”, says one western diplomat
A dwindling peace dividend
Stocks performance,
Colombo SE all-share index
8000
7000
6000
5000
4000
3000
2000
1000
2009 10 11
Source: Thomson Reuters Datastream
roadside cafés in the majority of towns.
Soldiers in civilian clothes cycle around
selling bread. Other activities are more
exotic: the air force opened a golf
course in the east this year and the
navy runs whale­watching tours on the
southern coast. Any tourist keen to zip
over to either attraction can do so on
an army­operated helicopter ride.
Much of this commercial activity is
presumed to stem from another of the
president’s brothers, Gotabhaya
Rajapaksa, who controlled the wartime
forces and has since expanded their
reach to include urban development.
This gambit has ensured their
involvement in construction and
beautification projects such as
Colombo’s racecourse refit.
Few are willing to criticise Gotabhaya
A nation to rebuild: China has been a
key partner to Sri Lankan President
Mahinda Rajapaksa in his development
projects. Mr Rajapaksa is accompanied,
above, by the special envoy of
Hu Jintao, China’s president Xinhua
Sri Lankan goods trade balance,
rolling 12-month sum ($bn)
0
-2
-4
-6
-8
-10
-12
12 2007 08 09 10 11 12
Rajapaksa openly, given his reputation
as the regime’s enforcer. His
fearful image can only have been
strengthened when an article last year
in the New Yorker confirmed that he
keeps a tank of sharks in his garden.
Yet the army’s growing role remains
regrettable, says Ahilan Kadirgamar, a
political analyst based in the northern
regional capital of Jaffna. It is part, he
says, of a wider problem of military
encroachment into public institutions
and other areas of civilian life in the
aftermath of the conflict.
Others, however, see a more
innocent explanation for the trend.
“The army here are skint while the
troops are incredibly bored,” says one
charity worker operating in the north.
“So these things keep them busy.”
based in the country, citing worries
over threats to journalists, opposition
politicians and civil society figures,
alongside a continuing spate of myste-
rious abductions of regime critics and
Tamil civilians. Many Sri Lankans say
these are orchestrated by the military.
Few place much faith in the coun-
try’s fractured opposition to counter
such problems, despite the govern-
ment’s release of Sarath Fonseka, the
former head of the army who stood
unsuccessfully against the president
in 2010, only to be subsequently jailed
on charges the opposition says were
politically motivated.
“They are trying to run the govern-
ment as a dictatorial regime,” Mr Fon-
seka now says. “Corruption has
increased . . . but the main opposition
party is totally disorganised.” This
pushes many to pin hopes of change
on international pressure.
Such allegations of cronyism and
graft increasingly worry investors
already alarmed by the resignation of
the country’s top financial regulator
in August, seemingly pressured by the
administration to forestall investiga-
tions into stock price manipulation.
“Sri Lanka has lots of potential, but
only if the megalomaniac tendencies
of the president and his brothers can
be brought under control,” says one
western fund manager.
Mr Rajapaksa himself seems
unbothered by such sentiments; in a
speech in August he stressed that Sri
Lanka would solve its problems with-
out “relying on imported solutions
and utilising foreign influences”.
A
ny move to press him fur-
ther, including criticisms of
Sri Lanka’s human rights
records in Geneva or a fur-
ther resolution at the UN next March,
is immediately complicated by China.
Concerns in western capitals have
focused on Sri Lanka’s new ports,
which some defence analysts think
could form part of a series of military
bases and other Chinese-backed
projects around the Indian Ocean
known as the “string of pearls”.
Such developments worry India too,
which frets about any Chinese pres-
ence close to its borders and about
domestic political pressure from its
61m Tamil citizens seeking action to
help their fellow Tamils to the south.
“President Rajapaksa has been very
clever in playing China, India and
America off each other, but it is a
slippery slope,” says Sinha Ratna-
tunga, editor of the Sunday Times
newspaper in Colombo. “We are still
living on borrowed money.”
Even so, Sri Lanka plans more
grand infrastructure schemes. Namal
Rajapaksa, the president’s 26-year-old
son and the head of the district
around the southern Hambantota
port, says some $5bn will go into new
projects in his area over five to 10
years. While he says the country will
seek an array of foreign investors,
many believe such plans are unlikely
without further Chinese finance.
If that happens, other senior figures
seem relaxed, stressing that their
country has long sought to be inde-
pendent. They play down risks associ-
ated with Chinese tie-ups and insist
that their fast-growing island will be
able to repay loans.“We are not wor-
ried about it at all,” says Mr Cabraal
at the central bank. “In different peri-
ods in the history of the world, fund-
ing for investment has come from
many different countries . . . perhaps
now it is just China’s turn?”
10
“Without fear and without favour”
Thursday November 1 2012
Athens shoots
the messenger
Crack down on tax evaders, not those who expose them
That the investigative journalist
and editor Costas Vaxevanis is
being put in the dock today for
publishing a list of 2,000 Greeks
with alleged Swiss bank accounts
testifies to the moral bankruptcy
of the Greek political class.
The list in question was given to
the Greek government two years
ago by the then French finance
minister, Christine Lagarde. There
is no suggestion that all those on
the list necessarily have evaded
Greek taxes through their Swiss
accounts; moreover, the list only
covers accounts at a single Gene-
va-based bank branch. But if, as
Mr Vaxevanis and others suggest,
the list was shelved and no investi-
gation carried out into the account
holders’ fiscal probity, it is a scan-
dal compounded by the misjudged
decision to shoot the messenger.
Mr Vaxevanis is charged with
violating data protection laws.
Whether or not he technically did
so, there can be no doubt that he
and Hot Doc, his magazine, have
acted in the utmost public interest
– more than can be said about the
state now persecuting him. The
judge must set Mr Vaxevanis free.
It was clear from the very start
of Athens’ debt crisis that its tax
system – if it can be called that –
needed complete reform. Greece’s
political economy has been based
on making outsiders pay for privi-
Poor by default
Argentina’s stonewalling of foreign creditors is costly
It has long been an article of faith
for Argentina’s government that it
will never negotiate with those
creditors that held out against
restructurings of the country’s
defaulted dollar bonds in 2005 and
2010. So determined is the presi-
dent, Cristina Fernández, to have
no truck with those she deems to
be “vultures” that she has even
written this commitment into law.
Unfortunately for Ms Fernández,
her pledge has collided with US
law, under whose provisions the
original bonds and their restruc-
tured successors were issued. A
New York court has ruled that
Argentina must pay $1.4bn owed
on unrestructured paper to some
hedge funds. The ruling dismisses
the idea that Argentina has the
power to discriminate between
those investors who accepted the
restructuring and those who held
out. In effect, Ms Fernández must
either repeal her law and repay the
hated vultures or default on the
whole lot – restructured or not.
True, it remains questionable
whether the judgment will in prac-
tice be enforced. In theory, what
gives it teeth is that Bank of New
York Mellon – which, as custodian,
distributes Argentina’s bond pay-
ments – can be charged with “aid-
ing and abetting” if it does not
comply. But this may not stop
Argentina seeking to frustrate it –
Heseltine’s zeal
UK has a go at industrial policy. Do not hold your breath
When Lord Heseltine was presi-
dent of the board of trade in the
1990s, it was always his proud
boast that he would intervene
“before breakfast, dinner and tea”
to help British companies. So
when the coalition asked him to
draw up a list of industrial policies
to help rebalance a British econ-
omy that was overdependent on
finance, it was always likely to be
a long one.
Lord Heseltine’s prescription
runs to 228 pages and offers 89
recommendations. Some are sensi-
ble, such as his demand that the
government makes up its mind
about where to site a new airport
in the southeast. Some Heseltinian
energy on this question would be
welcome. Others, such as the rec-
ommendation that the government
intervene more in foreign takeo-
vers, are more problematic. It will
be hard for ministers to define
what is a strategic industry and
whether an acquirer will improve
or destroy the company it buys.
None is likely to have a dramatic
impact on economic growth.
Lord Heseltine’s ideas are
refreshingly radical. For instance,
he proposes stripping Whitehall of
more than £58bn of funding for
business support and handing
these decisions to local bodies.
Businesses and communities often
understand what is good for their
leges enjoyed by the clients of the
main political parties and borrow-
ing abroad to top up. A tax system
in which insiders hardly pay and
compliant outsiders receive shoddy
public services is just the most vis-
ible case of political rot.
A solution to Greece’s economic
woes must include the capacity to
levy taxes from everyone and more
willingness to do so equitably. Yet
more importantly, this is neces-
sary to emerge from the deepening
political crisis. Real statesmanship
in Athens would have meant tell-
ing the Greek people how misman-
agement at home is at the root of
the crisis and that a new course
demands an end to ingrained prac-
tices. It would have stood a chance
of rallying voters behind the neces-
sary changes. Instead, Athens has
taken too little responsibility for
its reform programme and has
set its population against those
extending financial aid.
Even as Athens is finalising the
latest policies required to satisfy
its international creditors, how
it resolves the case of Mr Vax-
evanis is the best indicator of
whether the country is able to
carry out difficult but indispensa-
ble reforms. Greece’s leaders had
better crack down harder on those
who have milked the system than
on those who have exposed possi-
ble wrongdoing.
perhaps by seeking to reroute the
payments, although this itself may
be fraught with legal perils.
In a sane world, Buenos Aires
would revisit its iron refusal to set-
tle with foreign claimants. (In
addition to snubbing the holdouts,
it has defaulted on almost $10bn of
debt owed to the Paris club of sov-
ereign creditors.) This has not only
led to a series of embarrassing
judgments against Argentina,
including the recent impounding
of a naval vessel in Ghana, it has
also left the country’s inhabitants
with among the highest borrowing
costs in the world.
But Ms Fernández seems more
likely to respond by wrapping her-
self ever more tightly in the
Argentine flag. Her government is
drifting fast towards an almost cer-
tainly ruinous policy of autarky,
with the nationalisation of the
main oil company, YPF, and impo-
sition of currency and import con-
trols. Her bitter fight with Clarin,
Argentina’s biggest media group,
hints at an increasingly intolerant
attitude to critics.
Ms Fernández, who likes to play
the victim, typically says all her
problems are of someone else’s
making. Yet this is a convenient
rewriting of recent history. Like
the debt ruling, most of these prob-
lems are of Argentina’s making, or
even her own.
economy better than gentlemen in
Whitehall.
Nonetheless, there are reasons to
wonder how well this will work in
practice. Lord Heseltine’s idea is
that Local Enterprise Partnerships,
voluntary bodies that involve busi-
ness leaders and local councils,
would bid for money from the cen-
tral government to back projects.
But the LEPs’ expertise varies
across the country. There is a risk
that the process may simply
reward the most persuasive LEPs,
regardless of the quality of their
projects.
Furthermore, the centre is
scarcely taken out of the equation,
because a government entity, the
National Growth Council, will pick
all the winners. Finally. the pres-
ence of local entrepreneurs in the
LEPs is a mixed blessing. Some of
them will surely try to use their
role in the body to protect their
own position in the market rather
than helping the local community.
This does not mean that govern-
ment should ignore Lord Hesel-
tine’s ideas on decentralisation.
However, it would be wise to start
with a less copious pot of money,
which can be expanded if the
scheme is deemed successful.
Lord Heseltine should be allowed
to intervene, but just before break-
fast. For dinner and tea he will
have to wait.
★ FINANCIAL TIMES THURSDAY NOVEMBER 1 2012
True cost of ‘toxic’ fuels is felt in climate change
From Mr Paul Hohnen.
Sir, Given the recent policy
setbacks for renewable energy in
many countries, Jeremy Leggett
provides a welcome reminder that
we are far from having a level
playing field when it comes to
measuring the real cost of energy
systems (“Why the carbon bubble is
a real risk for markets”, October 31).
On top of the International Energy
Agency’s estimated global subsidy of
more than $400bn for fossil fuels
comes the awful climate change
price of using even a small part of
the remaining reserves of coal, oil
All­round central
bank chiefs need
to sing and act
From Prof Johan A. Lybeck.
Sir, There are great similarities
between central banking and opera,
not only in the sense that their
leading figures tend to be divas. In
the “good old days”, it was quite
sufficient to excel in one of its
competences without being very good
at the other. As an opera singer, if
you had a wonderful voice, who
cared about your lack of acting
ability? Today, demands are much
higher for leaders of the profession.
You have to be able to sing
beautifully while crawling on the
floor, like Plácido Domingo in Otello,
or to jump into the arms of your
beau while still singing, like Natalie
Dessay in La figlia del reggimento,
or to sing while juggling apples,
like Rolando Villazón in L’elisir
d’amore.
Similarly, in the “good old days”
it was quite sufficient for a central
banker to be an expert in monetary
policy. His or her task was to aid the
financial system as a whole, not to
help individual banks with solvency
problems. Financial stability was
supposed to be addressed by the
Treasury and the supervisory
authority. The crisis of 2007-10 has
taught us that distinguishing
between liquidity and solvency
aspects of a crisis is difficult, nay
impossible. Liquidity problems in
‘More of same’ but College enshrines primacy of states
some of us love it From Mr Anthony Fry. say, New Hampshire during the
From Mr Michael Payne.
Sir, Jason Pontin argues that
technology companies need to
reinvent themselves every so many
years or, to paraphrase Steve Jobs,
that they need to “bet the farm”
every so often in order to survive
(“Microsoft and Apple confront a
tough new tech world”, Comment,
October 30).
Yet Mr Pontin contrasts the launch
of the “elegant and innovative”
Windows 8 and Surface with the
launch of Apple’s “more of the
same” iPad mini. He forgets that
Apple “bet the farm” more than five
years ago (much longer than that
if you count development time) with
the launch of the iPhone, which
upended the mobile phone industry;
the iPad has enjoyed a similar
runaway success, which continues to
disrupt the PC industry. Microsoft
was forced to make some radical
choices. Windows 8 and Surface are
a great start, but Microsoft is still
playing catch-up in the increasingly
important tablet space.
Apple may have lost its
co-founder but under Tim Cook it
hasn’t lost its way, and its fate
certainly isn’t driven by “salespeople
and bean counters”. It continues to
do what it’s done for the past 15
years: innovate, refine, iterate.
Some people find that boring, the
rest of us continue happily to buy
its products.
Michael Payne,
London SW20, UK
● To contribute please email: letters.editor@ft.com or fax: +44 (0) 20 7873 5938 Include daytime telephone number and full address
Notebook
Janan Ganesh
Nimbys up in arms
over benefits
Landing on a million British
doormats this week is a letter from
the government notifying higher
earners of their imminent loss of
child benefit. The payment used to
go to all households with children
but will now be reduced for those
with an annual income exceeding
£50,000 and withdrawn entirely from
those earning more than £60,000.
Most spending cuts rile the left;
this one provokes utter
incandescence among parts of the
right. With single-minded vigour, if
not award-winning originality, the
Conservative-leaning press deplores
it as an attack on plucky “strivers”
(the quaintly condescending mot du
jour to describe hard-working
middle-income people) by a
government of perfumed dilettantes
with no grasp of life outside their
inherited, moat-encircled castles,
where they are fed grapes from the
talons of golden eagles.
Since the policy was adumbrated
two years ago, these angry scribes
(whose ire is shared by many
Conservative backbenchers) have
LETTERS
and gas, and the value destruction
that might ultimately result from
holding what must come to be seen
as “toxic assets”.
The FT has been right to balance
the celebratory spin given to gas
fracking, new frontiers of Arctic oil
or record US coal exports with
reporting on what the long-term
price to pay might be. Insurance
claims (Katrina, $41bn, and Sandy,
$30bn-$50bn) tell only part of the
story.
Unless a more concerted
investment is made in making the
transition to genuinely sustainable
The demands of opera are much greater today
Northern Rock, Lehmans and AIG
soon turned into liquidity and
solvency problems for the entire
industry as prices of collateral assets
crashed and confidence between the
actors vanished.
The response, correct in my view,
has been to move financial
supervision into the central bank.
But this transition demands a much
broader competence by the governor
than has been the case so far. She/
he must understand both monetary
policy and financial stability. And to
my mind, in your editorial “A belt-
and-braces approach to banks”
(October 29) you are surprisingly and
unfairly condescending towards the
Bank of England’s Andrew Haldane
whom, because of this double
competence, I would regard as being
the best candidate by far to succeed
Sir Mervyn King. Similarly, and for
identical reasons, my hope is that
Sir, Anna Fifield is right (October
30) that the electoral college was a
compromise by the founding fathers,
but the crucial issue was that,
while the plebescite should be held
nationally, the electoral college
would enshrine the fundamental
principle of the primacy of individual
states and, most important, provide a
protection for the smaller states.
Were it not for the electoral college,
no candidate would bother visiting,
Star pitchers blessed by a day of rain
From Mr Louis Bareño.
Sir, I know that Jurek Martin is
a diehard baseball fan; however, in
his article “ ‘Frankenstorm’ puts the
fear of God into campaign trail”
(Global Insight, October 31) he
recalls that “Milwaukee’s baseball
team had a simple formula for
success: ‘Spahn and Sain (the names
of star pitchers) and pray for rain’ ”,
when in fact this was the Boston
Braves’ rallying cry in 1948 when
Fondly recalling authentic Mr Lukes
From Mr Magnus Spencer.
Sir, Many congratulations to
Anthony Goodman (“Would the
real executive please stand up”,
Business Life, October 29) on the
number of references to “authentic”
(four), “authenticity” (seven),
been predicting a crushing public
rebellion against it.
Maybe this insurrection will
transpire in the new year, when the
benefit change takes effect. There are
certainly rumples in the policy: some
households face swingeing marginal
effective tax rates, for example, and
dual-earners could be favoured over
single-earners. Tweaks have already
been made to the original policy. But
all the evidence so far suggests that
most people, including the majority
of those who are about to lose child
benefit, regard the measure as fair
enough at a time of penury for the
public finances. Indeed, it is hard to
think of an austerity measure that
commands more support in the polls.
This goes to show that national
newspaper journalists, even those
who proudly brandish their fealty to
the average punter, generally have
a tenuous grasp of what a typical
living standard is. Simply by virtue
of residing in London, a city more
removed economically and culturally
from its host country than perhaps
any other on Earth, we get a skewed
sense of the normal. In my
experience, many in the media do
not know, or struggle to accept,
that the vast majority of their
compatriots do not earn enough to
be touched by the child benefit cut.
A couple with two children and a
combined income of £55,000 would,
to a successful journalist in the
capital, seem extremely hard-pressed.
In fact, they are richer than 85 per
cent of UK households. They do not
feel rich, of course, but to compare
them with the kind of aspirational
energy systems, future historians –
most probably writing in a world
where storms like Sandy are the
norm – will be at a loss to explain
why humankind spent so much time
knowingly digging and drilling for
diminishing reserves of the very
energy sources that would so
adversely impact on its future, while
plentiful above-ground sources,
including wind and solar, went
largely unused, despite proof of
concept.
Paul Hohnen,
Sustainability Strategies,
Amsterdam, The Netherlands
Corbis
Ben Bernanke’s successor at the
Fed will be Thomas Hoenig, today a
director of the Federal Deposit
Insurance Corporation and earlier
head of the Federal Reserve Bank of
Kansas. As for the European Central
Bank, Mario Draghi has made it
evident that he is both competent
and willing to attack solvency and
liquidity problems simultaneously.
An additional benefit is that all three
favour the Kiss strategy (“Keep It
Simple, Stupid”) to banking
supervision rather than the present
Basel III and Dodd-Frank approaches,
which are impossible to understand
in all their complexities and hence
impossible to implement. I do agree
with your final comment that the
capital required of banks in the
future must be set at much higher
levels than those in Basel III.
Johan A. Lybeck,
Noailhac, France
campaign.
Whatever the carping of the critics,
this fact alone will ensure that there
will never be a constitutional
amendment to abolish the electoral
college, since it will never achieve
the necessary approval of two-thirds
of the states.
Anthony Fry,
Senior Adviser,
Espirito Santo,
London EC4, UK
they surprisingly won the National
League pennant.
In those days, star pitchers often
had to go with only two days (one
full day) of rest; in the age before
enclosed stadiums, a day of rain was
a blessing. Following the 1952 season,
the Braves moved to Milwaukee.
Since 1966, the Braves have played
in Atlanta.
Louis Bareño,
Mexico City, Mexico
“authentically” (two) and
“inauthenticity” (just the one).
Martin Lukes would be 140 per cent
proud. All while Lucy Kellaway
was on holiday.
Magnus Spencer,
London EC2, UK
● For corrections email: corrections@ft.com
working-class voters who were
ushered into home ownership by
Margaret Thatcher 30 years ago
really is stretching it.
There is another kind of solipsism
that has been exposed by the row.
Many on the right who support
austerity in principle are intensely
hostile to any cut that wounds their
favoured causes. The columnist
Matthew D’Ancona calls this “fiscal
Nimbyism”, and it is a problem for
the government. The spectacle of
avowed rightwingers in parliament
and the press lamenting the loss of
a universal state benefit would
amuse ministers were it not for their
power to grind the government down
with invective and obstinacy.
Open debate on
media regulation
must include
legislative option
From Mr Martin Moore.
Sir, I am perplexed by the
Financial Times’ U-turn with
respect to the role of legislation to
support a new system of media
regulation (“Leveson, the British
media and the law”, editorial,
October 30). Less than four months
ago you argued: “It may well be that
some sort of statutory underpinning
will be necessary. So long as the
regulatory body itself is genuinely
independent, this should be
workable” (editorial, July 2). Now
you suggest that the use of
legislation would be crossing a
“legal Rubicon”.
This is a strangely contradictory
position to take, especially given that
in this week’s editorial you state
that “the UK already has a plethora
of legislation to deal with media
excesses”. This is surely to have
your cake and eat it. The UK does
have a plethora of legislation that
affects the media, some of which is
overly restrictive and some not.
Legislation per se is neither a
“legal Rubicon” nor a guarantor of
freedom. It depends entirely on what
the legislation says. Finland, for
example, passed the Act on the
Exercise of Freedom of Expression
in the Mass Media in 2003. This
provides the public with a right of
reply, gives news outlets a duty to
correct, and says that each outlet
must nominate a “responsible editor”
(to avoid editors claiming to have
been “on holiday” and therefore
avoiding responsibility). This has
not had a constraining effect on
media freedom. On the contrary, in
eight of the past 10 years Finland
has been number one on the World
Press Freedom Index.
To take an inflexible position on
the use of legislative measures in
media regulation ignores our current
situation and prevents open and
measured debate about the future.
I hope that the FT’s new position
will not stifle such debate.
Martin Moore,
Director,
Media Standards Trust,
London W11, UK
From Ms Mandy Cormack.
Sir, Your editorial (October 30)
repeats affectionately the mantra
of Lords Black and Hunt, “the
preservation of a raucous and
independent media that can expose
injustice and hold power to account”.
This is a strangely different media
from the one revealed during the
Leveson inquiry, where time and
again evidence was given of abuse
of power, indifference to facts and a
cynical denial of responsibility by
the industry’s leadership for their
manifest wrongdoing.
Is it any wonder, in the face of
such a culture of denial and refusal
of accountability, that statutory
underpinning of the new regulatory
regime is regarded as the only
possible way to ensure that the
expression rights of journalists and
editors are balanced with society’s
equal interest in the rights of
individuals (including privacy) and
the rights of the public not to be
wilfully misled?
The media’s record on holding
power to account and exposing
injustice is hardly untarnished
either; think financial crisis and
scandals, Hillsborough, Savile. As
regulators have found with the
banks, regulating powerful
international players with mobile
assets cannot be left to industry
leaders. Be wary of state
intervention, yes, but not of rooting
the new regulatory regime outside
the industry with the same
protections for independence as the
judiciary.
Mandy Cormack,
Coln St Aldwyns, Glos, UK
The policy’s critics are right about
one thing. It is historic. Universal
child benefit was introduced after
the second world war (as the “family
allowance”) to give higher earners a
stake in the welfare state. Denying it
to them could erode their tolerance
of redistributive government, as
could the gradual withdrawal of the
tax credits they are able to claim.
Austerity’s long-run implications for
the voting habits of the relatively
well-to-do remain underestimated.
Childless bliss
The subject of state support for
people with children should raise an
obvious question: what about the
childless? But it rarely gets asked.
So much government policy and
political rhetoric is pitched at
families. Of course, we are a
democracy and most voters either
have children or will do eventually.
But our polity is surely meant to be
plural as well as majoritarian, with
minority perspectives and lifestyles
given some voice.
A fifth of British women are
childless at the age of 45, a share
that rises among graduates. There
are plenty of gay people with no
interest in having children through
adoption or a surrogate mother.
Some men, I can report, would
sooner volunteer for amateur
bomb-disposal work than fatherhood.
These people are all part of the
modern social swirl. It is politics
that has failed to keep up.
janan.ganesh@ft.com
FINANCIAL TIMES THURSDAY NOVEMBER 1 2012 ★ 11

COMMENT

Banking may lose its allure for the best and brightest The future
finance swelled from the late 1970s to politicians and voters feel so much seeking, speculative game, but was plenty more retrenchment ahead.
of Africa’s
Gillian Tett today. Jobs in banking multiplied
and the financial sector, adjusted for
anger. Headhunters reckon employee
numbers and salary levels have
shaped by more of a utility
mentality, thanks to government
According to recent calculations by
Mr Philippon, the relative size of youth hinges
A
s UBS announced plans to defence spending, rose from 4 per declined by a fifth or so since 2007; pressure and deleveraging (and, finance in the US economy did not

on creating
chop 10,000 staff this week, cent of gross domestic product to but this reverses only a small part of subsequently, the second world war). even peak until 2010, not 2007; as in
many traders reacted with just under 9 per cent at the peak. the previous decade’s expansion. This time, change is slower: four the 1930s, the really stark relative
shock. Little wonder: during the past Banker pay swelled too: although However, this may reflect a time years after the crisis, the modern shrinkage might lie ahead.

three decades, it might have seemed
inconceivable that any bank could
slash its workforce so far, so fast.
The young(ish) traders who suddenly
found themselves locked out of UBS
this week built their careers in an
era when finance seemed to keep
inexorably growing; investment
bankers were woven into the fabric
average banking salaries relative to
non-banking professional salaries
were almost at parity in the 1950s,
by 2007 they were 1.7 times higher.
A similar expansion took place in
the early years of the 20th century.
Between 1880 and the early 1930s,
finance’s share of GDP rose from
2 per cent to 6 per cent. Banker pay
lag. For, once again, history is
instructive. Back in the 1930s,
bankers’ relative wages did not start
falling until the mid 1930s and the
size of the financial sector, relative
Business school students
still dream of working on
equivalent of Glass Steagall has not
yet taken full effect and the shift
from a speculative bank culture
towards a utility mindset is less
marked. That is partly because
government does not control finance
as tightly as it did in the 1930s;
nimble financiers now hop across
borders and many activities occur
employment
That will be of no comfort to the
UBS traders who were so crassly
locked out. But there may be a silver
lining for policy makers. In those
postwar years, when finance was
more of a utility and offered fewer
ultra-well paid jobs, the brightest Jeffrey Herbst
students flocked into other fields, and Greg Mills
such as manufacturing or medicine.

of the modern economy, along with
ultra-high levels of banking pay.
But viewed through a long lens of
history – say 100 years – this week’s
news does not seem so unusual. For
while finance might have swelled in
recent decades, it is often forgotten
that in earlier periods it also shrank,
to a startling degree.
Take a look, for example, at some
research conducted by a New York
based economist, Thomas Philippon,
partly in association with Ariell
Reshef of the University of Virginia.
They chart the fluctuations of
American finance since 1880 and
show, firstly, how dramatically
rose from parity with non-banker
pay to 1.7 times then as well.
But the trend does not always go
one way. After the 1929 crash,
finance shrank sharply and banking
jobs disappeared. So stark was this
decline that from 1940 to the early
1970s, finance looked like a “normal”
profession: it paid its staff on a par
with other professionals, working in
medicine or education, say, with
similar levels of education.
Could a comparable swing occur
now? Until recently it seemed hard
to imagine. After all, bankers have
not appeared to suffer much since
2008, which is precisely why so many
Wall Street. But with
every new retrenchment,
perceptions are changing
to GDP, peaked in 1932, not 1929.
That was partly because the entire
economy was shrinking after the
Wall Street crash. But another factor
was that the Glass Steagall reforms
were not implemented until 1933.
Arguably, it took even longer until
bankers finally realised that the
nature of finance had changed: it
was no longer purely a profit-
outside regulated banks.
Nonetheless, those half-formed
Basel, Dodd-Frank and Volcker rules
are starting to bite: when UBS
announced its cuts, it said the new
regime made it uneconomic to run a
fixed-income operation. Deleveraging
is under way too. So it should be no
surprise that UBS now wishes to
focus on simpler, more transparent
transactions that serve the retail
base. Nor should anyone be
surprised that Axel Weber, UBS
chairman, expects other banks to
follow suit. After all, by earlier
standards, we are still “only” in a
period akin to 1933; there could be
That has not quite occurred in the
US yet; surveys suggest that many
business school students still dream
of working on Wall Street. But with
every new retrenchment, perceptions
are changing. If that continues, the
next decade could make the western
economy a touch more balanced; or,
at least, a place where finance finally
starts to look more “normal”,
compared to everything else.
* ‘Wages and Human Capital in the
US Financial Industry 1909-2006’,
by Philippon and Resheff, 2009
gillian.tett@ft.com
B
ucking the gloomy outlook
elsewhere, the International
Monetary Fund projects
sub-Saharan Africa’s economic
growth to be above 5 per cent this
year and next. This good news comes
on the back of the region’s best
growth decade. But much more
needs to be done.
Before hubris takes over, even
though the continent’s per capita
income is higher than it has ever
been, in real terms this remains just
above its roughly $600 level of the
early 1970s. Continental averages
also hide outliers: Botswana has
done much better and Somalia much
worse than the data suggest. These
differences are clear even between
neighbours. The border between
Zambia and Botswana at the

The ascent
Kazungula ferry offers a contrast as
to why the latter has made dramatic
progress since independence and the
former only halting.
The Zambian side of the ferry over
the Zambezi comprises a dusty dirt

of New York
road, a chaotic commotion of trucks
and touts, with stops required at
scarcely marked passport, vehicle
clearance, pontoon and police offices.
Botswana has a concrete slipway,
a tarred road and a professional staff

meets the rise

managing a clear process involving
a single road tax payment. Unlike
Zambia and Zimbabwe, where police
roadblocks abound as sources of
informal “taxation”, Botswana’s are
limited to functional checks to curb

of the oceans
John Gapper
For me, the most poignant
photograph of the destruction left by
hurricane Sandy was of the Fairway
supermarket in Red Hook, Brooklyn.
I used to shop there on weekends
and, in the café at the back, next to
two disused trams, would enjoy the
vista of New York harbour and the
Statue of Liberty.
Red Hook epitomises the city’s
resurgence and the new challenge it
faces. The docks of On The
Waterfront, abandoned in the 1960s
when containers shifted the port to
New Jersey, suffered years of blight,
like the city as a whole. These days,
Van Brunt Street is lined with shops
and restaurants – and the flooded
warehouses that house Fairway and
expensive apartments.
Watching the spirited New York
response – Mayor Michael Bloomberg
and his sign-language interpreter,
babies being ferried out of New York
University hospital, locals braving
the blackout on the Lower East Side,
pledges to drain the flooded subways
– it is easy to underestimate the
longer-term calamity. Hurricanes do
not keep engulfing New York. This
should not be happening.
But Sandy has happened, only a
year after Irene blew past, and the
signs are that it will occur again –
and again. The financial and
business hub of the world’s biggest
economy will again be tossed around
and flooded – its stock exchanges
closed and its citizens sheltering in
apartments without power. Next
time, it might be worse.
The irony is that New York was
once a dystopian metropolis because
of the people who lived there – the
gangs and hustlers left by middle-
class flight to the suburbs. Now it
has been so thoroughly cleaned that
the suburbs are fading as the well-off
settle in Soho, Tribeca and Brooklyn.
It is one of the most civilised, least
dangerous of US cities – except for a
change in the climate.
It is not alone, although it is the
starkest example. All over the world,
from London to Shanghai and Hong
Kong, people flood to port and
coastal cities that generate jobs and
are centres of innovation, economic
dynamism and culture. This human
flood confronts a real one, brought
on by higher and warmer oceans.
When I was a child in the 1960s, I
stood on our garden path in Kew,
watching the flood waters from a
tidal surge in the Thames flow along
the road to within inches of us. The
authorities reinforced the river bank
and later constructed the Thames
Barrier at Woolwich to stop the
floods from occurring.
That is what we expect:
infrastructure and technology that
keeps citizens shielded from natural
forces. The ascent of the modern
city, where people live, work and
socialise cheek by jowl, was enabled
in London by Joseph Bazalgette’s
building of the Victorian sewer
system, killing off cholera.
New York’s infrastructure is even
more monumental – the Brooklyn
Bridge, built in 1883 and the deluged
Brooklyn-Battery Tunnel (jarringly
renamed after Hugh Carey, the New
York governor who started to
untangle the financial and social
chaos of the 1970s) in 1950. But none
is immune to a hurricane.
The Achilles heel of these great
port cities is being built by water,
and New York’s vulnerability is
more acute than most. Manhattan is
an island; Brooklyn and Queens are
on the edge of Long Island and
Staten Island speaks for itself. New
Orleans could raise its levees, and
London could dam its river. New
York is surrounded.
It is steadily becoming more
vulnerable to the tides. Of the top 10
high-water marks at the Battery on
the southern end of Manhattan since
1900, three have occurred in the past
two years – Irene, Sandy and the
2010 spring flood. Flood surges
around the edge of lower Manhattan
are now familiar events.
Hurricanes traditionally wore out
before reaching the northeast coast,
with rare exceptions such as the
Long Island Express hurricane of
1938. Tropical storms starting off by
the Gulf of Mexico or, in the case of
Sandy, Venezuela, tended to lose
energy and fizzle out when they hit
the cold northern ocean.
This is changing. Parts of the
Atlantic Ocean were several degrees
warmer than usual this year, which
helped to propel Sandy up the coast
All over until it folded into another north-
the world, eastern storm, bounced off a weather
people front encouraged by melting Arctic
ice and battered Atlantic City and
moved to the New Jersey Shore.
coastal “Sandy is a clear case of us being
very unlucky but climate change
cities that contributed to it in a variety of ways
generate and it is continuing to load the dice
against us,” says Ben Strauss, who
jobs leads the Sea Level Rise programme
at Climate Central, a research group
in New York.
The drenching of Atlantic City is
sad but, in economic terms, New
York matters more. In many ways,
it is the quintessential city: tightly
packed, easy to get around (thanks
to dense public transport) and full
of technology and services. It is a
bundle of energy, drawing in
migrants from less vibrant parts of
the US and immigrants.
Such cities dominate national
economies. The McKinsey Global
Institute estimates that 60 per cent
of the rise in global gross domestic
product from 2010 to 2025 will come
from 600 cities. Having emerged from
its past days of decline, New York is
well-placed to lead this trend, apart
from its geographical weakness.
New York has no obvious solution.
Shifting buildings and citizens away
from the low-lying areas would be
impossible (imagine the reaction of
Red Hook dwellers to being told to
move to Park Slope) and building
barriers across rivers would be
expensive and imperfect.
Rivals may spy opportunity in the
city’s travails – some will drop hints
to employers and exchanges that
they ought to move somewhere safer
and dryer. But New York is not the
only large metropolis perched by the
coast or a tidal harbour. We are
witnessing the future.
john.gapper@ft.com
foot-and-mouth disease.
Africa’s recent growth is not self-
sustaining. Much has been driven by
higher commodity prices, which still
dominate African exports. The boom
has not led to much investment to
boost businesses and start a virtuous
cycle of true poverty reduction
through job creation.
If the continent is to
develop economies that
produce self­sustaining
growth, it must remove
its anti­business animus
This is imperative. Within 15 years
sub-Saharan Africa’s population will
increase by 500m, accounting for a
quarter of the world’s youth, with
66 per cent of its cohort of existing
youth already unemployed. Nearly
80 per cent of Africans today subsist
in self or informal employment.
How to meet this challenge
depends on specific circumstances.
Take South Africa, where a quarter
of the workforce – 4.5m people – is
unemployed, although another 2.3m
have given up looking for work.
Here, the answer must be to improve
labour productivity and flexibility.
While the economy has nearly
doubled its output since the end of
apartheid in 1994, and compensation
is today twice the figure of 20 years
ago, labour participation is down in
real terms. The reasons for this
hinge on the difficulty of hiring and
firing, allowing labour to move freely
from less to more productive uses.
If Africa’s first liberation was from
colonial government, and its second
from the liberators, the third has to
be a change in the nature of politics
itself and the reasons behind
economic choices.
Mohamed In part the answer lies in improved
El­Erian governance. Zambia’s economy is
Is Greece to expected to expand by 7.7 per cent
be in or out this year and to be among the 10
of the euro? fastest growers worldwide until 2015.
www.ft.com/ But the number of formal-sector jobs
thealist remains small – less than 5 per cent
of the 13m population. A principal
reason for this, says Guy Scott, the
vice-president, is that the cost of
borrowing stunts entrepreneurship.
Others argue that the costs of

Xi should draw up a new social contract for China
annual growth of 7.5 per cent, the
David Pilling economy is growing at its slowest
pace since 1999. That is the official
The inevitable side effects of that
stimulus – non-performing loans and
potentially deflationary overcapacity
speed rail network, will never make
a profit. Based on electricity-metre
readings, he estimates that almost
outstripping the ability of authorities
to deliver the safer environment or
justice people seek. Recent
borrowing and slow rate of job
creation are symptoms of a wider
malaise. Political uncertainty and the
high expense of doing business are
closely related, says opposition
leader Hakainde Hichilema, and far
more constraining.
If African countries are to develop

A
few weeks ago, Xi Jinping,
the man who will shortly
become China’s next
president, disappeared. Perhaps he
was getting cold feet. That is not a
very likely explanation for Mr Xi’s
13-day vanishing act. Far more likely
he was ill or fighting a behind-the-
scenes battle over the remaining
slots on the Politburo’s all-powerful
standing committee. But he would
not be human if he had not paused
to contemplate the enormity of the
task before him.
Domestically – not to mention
internationally where China’s
relations with Japan have strained to
snapping point – Mr Xi faces
extraordinarily complex policy
challenges. How he might tackle
them and what room for manoeuvre
he has within China’s system of
collective leadership will be the
subject of next week’s column. Here,
let’s confine ourselves to examining
what kind of China he will inherit.
Economically, the mood has
palpably darkened in recent months.
Growth has been slowing for seven
straight quarters and, with expected
figure. Some observers on the
ground, who talk to companies or
comb through proxies for gross
domestic product, estimate the
economy is doing worse than that.
If he chooses, Mr Xi can rev up the
stimulus engine once more. By most
estimates the combination of state
and local debt is no more than 70
per cent of GDP. Restrictions on
property and bank lending –
designed to tame inflation and cool
the economy – can be lifted. Since
some of the slowdown has been
deliberately engineered, it follows
that, if necessary, it can be reversed.
Yet that would be to swallow the
poison Beijing has been trying to
spit out for a decade. The current
government, headed by Hu Jintao,
has long recognised the need to
rebalance the economy away from
investment and towards
consumption. Those plans had not
been going well even before 2008.
After the Lehman shock, they were
junked altogether as Beijing mounted
what Goldman Sachs called the
biggest stimulus package in
economic history.
– have not yet taken hold. As the
economy slows, the bill from the last
spending binge will come due. To
double down on stimulus would be
to take precisely the wrong course.
No economy can productively invest
more than half its GDP year after
year. One economist calculates that
half of all China’s physical assets
have been built in the past six years.
Mao Yushi, one of China’s most
venerable economists, says that, after
three decades of fast growth, the
country stands at a crossroads.
“Sooner or later there must be a
crisis,” he says. Mr Mao, who was
this year awarded the Cato
Institute’s Milton Friedman Prize,
says many of the investments rushed
out after 2008, including the high-
China’s next president
would not be human if
he had not paused to
contemplate the
enormity of the task
30 per cent of China’s housing stock
is empty. Even if the proportion is
half that, it is worrying.
Too many houses is just the start.
HSBC says that the steel industry
has record debts, huge losses and
rising inventories. Even so, it is
continuing to crank up production.
As growth slows, unpaid bills to
Chinese companies have increased
and some local governments have
run into financial difficulties. In the
financial system, an eruption of
wealth management products, sold as
a high-yielding alternative to regular
deposits, has drawn comparisons
with US subprime loans.
Stresses in the economy are
bringing more social friction. Capital
flight has picked up as people seek a
bolt-hole. There is widespread anger
at corruption. Allegations in The
New York Times about the wealth of
Premier Wen Jiabao’s family is but
the most spectacular example.
Cyberspace is seething with stories
of arrogant officials caught wearing
expensive watches or lording it over
ordinary Chinese. Middle-class anger
has risen too. Expectations are
demonstrations in the city of Ningbo
against the expansion of a
petrochemical plant were the latest
in a series of not-in-my-backyard
protests. Local governments have
been surprisingly quick to yield to
popular demands. Even that may not
be enough. “You must politicise your
request,” says an academic at one of
China’s most prestigious universities.
“You must demand power, not just
fix a specific grievance,” he says,
predicting that anger could boil more
forcefully on to the streets. If people
are as disgruntled as he says, Mr Xi
will have to conclude a new social
contract that goes beyond trading
political monopoly for economic
liberty.
It is said that the Chinese
Communist party is the world’s most
competitive political system. “No
country prepares its leaders more
diligently,” says one admiring
diplomat. “This is the world’s best
management school.” For China’s
sake, one must hope Mr Xi really
has been its most brilliant student.
david.pilling@ft.com
economic systems that produce
self-sustaining growth and jobs,
they will have to remove the anti-
business animus that has existed
since colonial times. This suited
many leaders who emerged after
independence, as state intervention
offered patronage opportunities for
their allies. This was exaggerated by
the failure of the liberators, as
Zimbabwe’s prime minister Morgan
Tsvangirai has lamented, “to have a
plan beyond redistribution”.
Given that commodity prices will
only go so far, the ground must be
made fertile for other private sector
investment. This has to go beyond
words and ubiquitous vision
statements, however, to deeds – to
reducing the costs and uncertainties
of doing business.
African entrepreneurs have made
progress by circumventing their
governments. Truly to succeed,
governments have to be enthusiastic
about creating an environment
where business will prosper.
The writers are authors of
‘Africa’s Third Liberation’
12 ★ FINANCIAL TIMES THURSDAY NOVEMBER 1 2012

BUSINESS LIFE

If it’s a job W
hen an email arrives
with a misplaced
apostrophe – “the
with the literacy of school-leavers.
There are young people who
succeed without bothering about
be surprising if that did not result
in changes to the way people write.
Many language experts are relaxed The review
you’re after,
government needs to apostrophes. Lady Gaga tells Twitter about this. English has always
change it’s approach”, or a similar that, after her album Born This Way, changed. It is a permanent

Hedge fund failure

abomination – I tend to discount she had never felt “so so connected referendum. If enough people start
everything that comes afterwards. to my fans, watching how its regarding “its” as the contraction

learn your I am not alone. Kyle Wiens,

co-founder of iFixit and Dozuki, two
US technology companies, says he
it’s and its
refuses to hire people for the same
reason. “If it takes someone more
than 20 years to notice how to
properly use ‘it’s’, then that’s not
a learning curve I’m comfortable
with,” he wrote in a Harvard
Business Review blog.
Some may object, not because they
disagree with his sentiment but
because his own sentence contains
a split infinitive and ends with a
preposition. There is nothing wrong
with either, as the Oxford English
Dictionary online guide makes clear.
Why, then, does mixing up “it’s”
and “its” matter when it rarely
causes confusion? Because, as Mr
Wiens says, if you haven’t learnt
the difference by now, what else
haven’t you learnt?
His companies provide online
repair sites and technical manuals,
so some of his staff need to be able
to write. But he tests all potential
recruits. “I’ve found that people who
make fewer mistakes on a grammar
test also make fewer mistakes when
they are doing something completely
unrelated to writing – like stocking
shelves or labelling parts,” he says.
His complaints about poor
grammar are backed by the CBI,
Michael Skapinker the UK’s leading employers’
Business and society organisation, which says that half
of British companies are dissatisfied
changed your lives”.
Twitter’s writing rules are
different, you may argue. With only
140 characters per message, why
waste one on an apostrophe?
But it is not just “it’s” and “its”.
Mr Wiens pointed to the problem
some jobseekers have distinguishing
between “there”, “their” and
“they’re” (he could also have pointed
to “your” and “you’re”), which leads
many to think English is in danger.
There is nothing new about that.
In his fascinating 1991 book, Images
of English: A Cultural History of the
Language, Richard Bailey devoted
five pages to a list of complaints
about the degradation of English
over hundreds of years. Among the
alleged culprits were theatres (1665),
translations (1755), newspapers (1867),
“the great American advertising
man” (1927), the cinema (1930), and
television and computers (1986).
These were not the only claimed
reasons for decline. In 1712 one
writer blamed “illiterate Court-Fops,
half-witted-Poets and University-
Boys”, as well as women, who “do
naturally discard the Consonants”.
But it is noticeable that many of the
changes were blamed on business or
entertainment innovations.
Social media let writers reach
large audiences – Lady Gaga has
more than 30m Twitter followers –
unedited and without the constraints
of an editorial style book. It would
of “it is” and “it’s” as the possessive,
then that is what they will
eventually become and everyone will
write them that way, just as they
now write “music” rather than
“musick”, which Samuel Johnson
insisted was the correct spelling.
These experts call themselves
“descriptivists”. They merely note
how language is spoken and written.
They point out that dictionaries are
descriptive too. They pit themselves
against “prescriptivists”, the writers
of grammar manuals and style
guides, who lay down the rules of
spelling and punctuation.
I would like to suggest a third
category: affectivists. The term
already exists in art criticism, but
I have conjured it out of Sir Ernest
Gowers’ book, The Complete Plain
Words, which remains a superb
guide to clear communication nearly
60 years after it was first published.
If you The aim of writing, he said, should
be to affect your readers in the way
haven’t you wish them to be affected.
“It’s” and “its” may eventually
learnt the change, but not while Mr Wiens or
difference the members of the CBI are around.
It is hard to get a job these days.
by now, If young people want one, they had
what else better try to affect employers in the
way they wish them to be affected.
haven’t Learn the difference between “it’s”
you and “its”; it’s not that hard.
learnt? michael.skapinker@ft.com
and Wall Street’s
strangest story yet
Octopus
The Secret Market and the
World’s Wildest Con
Guy Lawson
Crown Business/Oneworld,
$26/£12,99
In one of Jorge Luis
Borges’s fables, an ancient
empire becomes so fixated
on the science of carto-
graphy that eventually the
only map that will suffice
is one whose size matches
that of the realm itself.
“The vast map was use-
less,” Borges writes, lacon-
ically. In its drive to cap-
ture reality, even to beat
it, the empire loses all
sense of it.
So it is too in the fantas-
tical tale of Sam Israel III:
a modern hedge fund fable
of fraud and failure that
starts in the familiar terri-
tory of Wall Street grime
and crime, and the drive of
one man to beat the mar-
ket – to “hear” it, as Israel
puts it – and ends deep in
the weeds of conspiracy
and paranoia.
Trump – one room of
which he has converted
into a “rock ’n’ roll” den,
with guitars and amps. At
his desk he has a one-way
camera to his hedge fund’s
trading room so that, god-
like but impotent, he can
watch over his messy crea-
tion. There is also a men-
agerie of exotic reptiles.
From here, the tale only
becomes stranger still.
Far, far stranger.
Israel’s desperation
pushes him into the arms
of another conman, who in
turn cons him, introducing
him to “The Octopus”, a
world-ruling cabal in
which the globe is carved
up between 13 families.
There is a hidden bond
market. An alien did land
in Roswell but died of a
strawberry ice-cream over-
dose. Israel is sucked in,
along with his clients’
already much-diminished
pool of money.
In the book’s manic sec-
ond half we learn that an
estimated $10bn has been

Think first, tweet later

Truth be told, the lost to such preposterous
collapse of “hidden finance” con-
Israel’s hedge spiracy scams.
fund, Bayou The big problem
Capital, in with Lawson’s
2008, would book is that shots
have been of objective reality
condemned
The spread of digital to obscurity
by the dark,
platforms means that long shadow of
the vaster Madoff
communication is scam were it not for its
increasingly easy – but sheer strangeness, as told
by Guy Lawson. In Octo-
so is making a mistake, pus, which was long-listed
for this year’s Financial
writes Ian Sanders Times and Goldman Sachs
Business Book of the Year

M
illions are in uproar in Award, Lawson relates by
#Cairo. Rumor they heard far the most rollicking,
our new spring collection trippy yarn to emerge
is now available . . .” read from the 2008 financial col-
the message posted on the Kenneth lapse so far.
Cole Twitter page. It starts ordinarily Trippy: Lawson tells the
Last year that tweet to promote the enough down a well-trod- strange story of Sam Israel
fashion brand’s spring collection den path of tightly written
caused controversy when it made financial storytelling, plot-
light of the protests under way in ting the rise of Israel in like this are in short sup-
Egypt. Social media faux-pas are far the rough world of 1980s ply. Octopus is the world
from rare. However, this was not an Wall Street under the tute- according to Sam Israel,
error by an inexperienced intern, but lage of some of finance’s based, as Lawson explains,
by the chairman and chief creative biggest names, from Freddy on “hundreds of hours of
officer himself, Kenneth Cole. The Graber to Leon Cooperman. interviews” with him from
company soon apologised but it had “I learned that Wall his cell. It is a claustropho-
already earned its place in online lists Street was an illusion,” he bic place.
of “Epic Twitter Fails”. It was defi- tells Lawson from his pri- After 300 pages, there is
nitely a case of a business leader son cell. “There were dif- a danger of feeling as if
tweeting first and thinking second. ferent magicians using dif- you have dedicated your-
Communicating from the hip is not ferent tricks in different self to an afternoon read-
restricted to trigger-happy tweeters. ways. But everyone cheat- ing through the reams of
Today the average executive has a ed.” commentary that populate
Israel’s equivalent of some of the internet’s
Borges’s map turns out to seediest redoubts. Octopus
‘I’ve yet to find an be a trading system he has could be leavened with
adequate digital designed called Forward more normality.
Propagation, which, he All of which is not to
replacement for a hopes, will unveil finan- deny it is worth persever-
raised eyebrow, cial truths to him. ing with the book. Bayou
Things, however, go might be small fry but
furrowed brow or smile’ downhill. Bayou, started Israel’s story is one of
by Israel in the 1990s, suf- hedge fund excess nudged
fers big losses following only a degree out at incep-
growing array of digital options to tweet when “socially relaxed”, and the terror attacks of Sep- tion.
communicate with their organisation, actively to avoid any negativity and tember 11 2001 and the lies His path so neatly paral-
clients and other audiences. Senior potential defamation. begin to take over. For- lels the greed and hubris
executives who once had time to pon- Organisations of all sizes increas- ward Propagation’s fail- of the industry, moving
der a reply feel under pressure to bec- ingly feel the need to create and pub- ures – hidden from clients stealthily away from real-
ome adept at rapid digital communi- lish content on more digital platforms, – are outpaced only by ity over time, that it per-
cation, from dealing with emails to from Twitter to blogs. Valuable Con- Israel’s failing grip on real- haps contains a kernel of
responding to tweets. Moreover, they tent is a UK-based consultancy that ity, massaged by a whole broader truth – or a warn-
are more likely to be dealing with helps professional service firms cre- alphabet of uppers and ing – for a financial world
these communications in the back of ate, write and share marketing con- downers from Depakote to that, like Borges’s useless
a taxi or in the queue at Starbucks tent. Creative director Sharon Tanton Zoloft via Lithium and map, can seem at times as
rather than in their own office. says that if content “is ill-thought Wellbutrin. though it is built on pure
Andrew Branch, a cultural sociolo- through, or shoddy, or pushy, your Poised on the precipice abstraction.
gist at the School of Arts and Digital reputation will suffer. Rushing to pro- of his downfall, Israel sits Sam Jones
Industries at the University of East duce ‘stuff’ . . . can be damaging”. in the chapel of a Tudor
London, says that while digital tools with the web and electronic commu- art school; similarly, a digital native Ms Tanton has co-authored a book revival mansion he has The writer is the FT’s
have enabled rapid and mobile com- nications – who are writing, design- may be less familiar with media law with colleague Sonja Jefferson, Valua- bought from Donald hedge fund correspondent
munication, they have also facili- ing and creating marketing cam- than a trained journalist. ble Content Marketing, to help small
tated a state of “perpetual now- paigns, may not have the training Lisa Kay, creative director of New businesses produce better digital con-
ness”, in which executives feel of their predecessors. A digital York digital agency Last Exit, has a tent. She recommends a “Stop, look,
every business communication native may be self-taught in art- background in traditional graphic des- edit” protocol to put some distance
must be processed and responded work skills, whereas his or her ign and was hired because the agency between the writing and publishing, Collaborate to innovate
to straight away. “We’re digital predecessor probably had been to wanted its output to be “pixel- although she concedes there is some
beings now, instead of analogue
ones. By this, I mean our communica-
perfect”.
She argues that some parts of the
flexibility depending on the format. Size matters in technology
Before you hit ‘send’ Small and big businesses are linking up

tion is inclined to replicate the posi-
tive and negative aspects of digital
culture: we act fast but this is not
always conducive to critical, reflective
thinking,” he says.
But “digital sloppiness” is not only
the result of executives acting before
thinking something through. Few peo-
ple have not experienced the tone of
an email, text message or tweet being
misunderstood or misconstrued. “As a
sociologist, I’m interested in the social
world, in which people enter into dia-
logue in varied ways, not just through
digital channels. Analogue communi-
cation in this sense is much more
receptive to nuanced dialogue – I’ve
yet to find an adequate digital replace-
ment for a raised eyebrow, furrowed
brow or smile,” adds Mr Branch.
The problem for executives is not
just the speediness demanded by elec-
tronic communication, but the num-
ber of platforms on which brands and
businesses need to get their messages
out fast. Online campaigns, Facebook
brand pages and viral videos must be
conceived, created and delivered in
hours or days just to keep pace.
That creates greater pressure for
diligence in a rapid production proc-
ess. Not only that, but some of the
“digital natives” – who have grown up
Not so fast:
Kenneth Cole, ●Stop, look, edit: Just because
above, apologised your BlackBerry or iPhone can
last year after a receive email instantly does not
tweet made light mean you must reply instantly.
of the popular Ensure you read an email through
uprisings in Egypt, properly – and your own response –
top, by linking before you hit “send”.
them to a fashion
launch Getty; AP ●Don’t publish a message or
content just for the sake of it.
“We’re awash with content so make
sure anything you add is useful,”
says digital content consultant
Sharon Tanton.
●If you are struggling to spot any
typos in your report, important letter
or presentation, get someone else to
check it.
●Know when meaning is more
important than detail. It is usually
better – despite some exceptions –
for a brand or business to respond
to a customer complaint on Twitter
rapidly than wait for the tweet to be
checked to be word-perfect. But a
comment from the chief executive
on the company blog should be
checked before it is published.
marketing and design industry are
suffering from not learning the funda-
mentals, such as typography or page
layout. “I see a lot of ‘get it done and
get it out the door’ mentality going
on, with a lack of attention to detail,”
she says. Speed of response matters,
but lack of diligence can dent the rep-
utation of a brand. “If it looks sloppy,
it makes even a luxury client look less
luxurious,” says Ms Kay.
Will King is founder and CEO of
King Of Shaves, the UK-based razor
and shaving gel company. A prolific
user of social media, Mr King sees
Twitter as an important brand-build-
ing tool. While there is no excuse for
spelling mistakes, he says, it is impor-
tant to be quick when responding to
social media enquiries.
“Speed of reply can be really im-
pressive, especially when it comes
from the CEO or brand spokesperson.
[But] imagine you will be ‘marked’ on
the quality of your response, espe-
cially if you are a senior person,” he
cautions.
Mr King – who tweets as @kingof-
shaves – advises fellow executives:
“Don’t just tweet about how great you
or your product may be, but get inter-
esting, relevant, thought provoking
content out there.” He adds not to
C
hristian Payne, a UK-based
digital storyteller, trading on-
line as Documentally, coaches
organisations in how to com-
municate online, with clients includ-
ing Kodak, the UNHCR and Vodafone.
A prolific blogger, he chronicles an
assignment in multimedia by upload-
ing photos and videos, blogging,
tweeting, posting data and audio blog-
ging. “If attention to detail slips, it is
not the fault of the tools. It’s the per-
son using the tools who chooses how
much attention they apply to certain
communications,” Mr Payne says. He
argues that in some contexts meaning
is more important than grammar:
“It’s enough for me that the content
communicates the meaning and con-
text.”
In the rush to communicate digit-
ally, meaning may trump spelling but
executives should also stop to think
before hitting “send” and remind
themselves that a sloppily produced
report, presentation or blog post can
detract from the message.
“Even a sales report should look
palatable to get your point across,”
says Ms Kay, “but the stuff I see that
people often create in PowerPoint
presentations posted online makes me
want to cry”.
In the age of the low-cost
technology start-up, it is
tempting to think that the
only place to find new,
smart ideas is in a small,
beanbag-filled office. Big,
silo-ridden organisations,
the argument goes, are
dinosaurs unable to be
creative because they are
so burdened by their own
bureaucracy that employees
can’t be creative.
But, increasingly, each
side is trying to work out
ways of tapping into the
power of the other.
Some big companies,
such as Walmart, have
established innovation
offshoots to tap into the
buzziness of Silicon Valley.
Others, such as American
Express, have hired
executives from the start-up
scene. The credit-card
business recruited Josh
Silverman, co-founder of
Evite, the online invitations
company, and a former
chief executive of Skype.
Gary Kovacs, chief
executive of Mozilla, the
organisation behind the
Firefox web browser, says
“the start-up world fills in
the cracks that bigger
organisations [can’t]”.
The cutting-edge MIT
Media Lab in Boston,
meanwhile, now calls the
companies that work with
it “members”. The idea,
says director Joi Ito, is for
companies to work with its
researchers rather than
seeing them merely as
innovators for hire.
Everyone wants to be
able to tap into creativity,
but it could be that the
process of innovation itself
is undergoing the biggest
bout of creative destruction.
Ravi Mattu
VIDEO ON FT.COM
Watch leading technologists
discuss innovation at
www.ft.com/techideas
FINANCIAL TIMES THURSDAY NOVEMBER 1 2012 ★ 13

MIDDLE EAST FOCUS

Qatar’s relationship with

Paris embodies objectives
Viewpoint
Its investment is
geared to profit,
security and brand
building, says
David B Roberts
When plans emerged last
month for Qatar to create
a €50m euro fund to
invest in some of Paris’s
poorest suburbs, the
French political right and
left united in disapproval.
Marine Le Pen, leader of
the far-right National
Front, denounced the
move as a plot to stoke
Islamism in Paris’s
Muslim-dominated
districts, while the left-
leaning Libération railed
against the French
government allegedly
subcontracting its
sovereign duties to a
Growing Middle Eastern state with
concerns: suspect motives.
construction Yet the reaction shows a
under way in fundamental
Riyadh this misunderstanding of the
year way Qatar operates
Bloomberg globally and what it is
trying to achieve. The
is typically foremost in
any Doha-backed
investment. Such strategy
is driven by a desire to
bolster the country’s
balance sheet and
diversify earnings away
from oil and gas.
The Qatar Investment
Authority, the state’s
main international
investment vehicle, was
established in 2005 to
bolster and secure the
longer term health of the
economy through
diversification.
Subsequently, it has
earned a reputation as a
successful, thirsty investor
with a particular eye for
bargains and blue-chip
companies.
Image in the west is
also an important element
of Qatari ventures
overseas, whether backing
Libyan rebels or building
the Shard, London and
Europe’s tallest building.
Since the mid-1990s,
Qatar has been trying to
present itself as a
business-savvy, culturally-
sophisticated and forward-
thinking country,
differentiating itself from
other Gulf city-states.
acquisitions in France and
buys up to 80 per cent of
its military material from
the republic.
Although there is no
document setting out
Qatar’s strategy, it is
apparent from – and only
possible because of – the
concentration of power in
the hands of a few
decision makers who are
related and share a vision
of the country’s future.
While Hamad Bin
Khalifah Al Thani, the
emir, remains in broad
strategic control, Tamim
Bin Hamad Al Thani, the
crown prince, is
increasingly active and is
behind several sporting
ventures, including the
acquisition of Paris St
Germain football club.
Hamad Bin Jassem Al
Thani, prime minister and
foreign minister, is the
key player in the Qatar
Investment Authority,
while Sheikha Moza, the
emir’s second wife, is the
guiding force behind the
socially-focused Qatar
Foundation.
The Paris banlieue
project contains elements
of all the imperatives that

Alert over states’ spending

pattern of its international
relations shows its
investments are geared
primarily to three things:
profit, security and
building a brand that
appeals to its western
Doha’s heavy investment
in art and education
facilities, conferences and
big sporting events are all
part of building the brand
of Qatar™.
A third strand in
have driven Qatar’s
international investment
spree. The fund may prove
to be a successful micro-
lending facility from
which Doha will gain
financially in the longer

S
The IMF suggests
that Gulf countries
should strengthen
their economies,
but politically the
timing for change
might be tough,
writes Michael Peel
MORE ONLINE
For more news and analysis
from the region, go to
www.ft.com/mideast
trong economic
growth forecasts
across Gulf countries
mask a set of swell-
ing uncertainties linked to
heavy government spend-
ing, wider Arab world poli-
tics and potential volatility
in the oil price.
While the six-nation Gulf
Co-operation Council is
well-cushioned by oil
money, many economists
say that there are doubts
about the sustainability
of expansion based mainly
on buoyant crude markets
and booming state invest-
ment and individual con-
sumption.
A report by the Interna-
tional Monetary Fund pub-
lished this week said the
GCC countries registered
an average gross domestic
product growth of 7.5 per
cent last year – but warned
that they faced “heightened
vulnerabilities” because
of their ever-growing
spending.
“There is a lot of froth
about the Gulf growth,”
said David Butter, a Middle
East financial specialist at
Chatham House in London.
“What the IMF and other
people are saying is: it
would be much more pru-
dent to start putting in
place policies that would
make the economies more
robust.”
Economic growth in the
GCC has bounced back
strikingly over the past cou-
ple of years, from 5.5 per
cent in 2010 and a contrac-
tion of 0.2 per cent in 2009,
according to the report.
While it is forecast to slow
again – to 5.6 per cent this
year and 3.7 per cent in 2013
– those numbers would still
be the envy of many crisis-
gripped western economies.
Equally notable is the
increasing role the non-oil
economy is forecast to play
in leading crude producing
countries such as the
United Arab Emirates and
Saudi Arabia, the world’s
largest oil exporter and the
biggest GCC country by far.
The report estimates non-oil
gross domestic product will
rise 5.5 per cent in the GCC
in 2013, while oil’s contribu-
tion will stay flat.
Some commentators see
this picture of steady GCC
expansion and a lower
dependence on oil as evi-
dence of rude financial
health. Jadwa Investment,
the Saudi bank, published
research last week entitled
“Saudi Economy: still shin-
ing”. Fahad Alturki, senior
economist, wrote: “Despite
the prevailing global eco-
nomic gloom, the Saudi
economy continues on a
solid growth path.”
Other observers take a
more sceptical view of the
‘Countries like
Saudi Arabia
simply can’t afford
to cut back
spending’
numbers and the founda-
tions of the GCC economic
story. While nobody is pre-
dicting a crisis, or disputing
the ability of the most oil-
rich countries to buy their
way out of trouble for some
time to come, there are
questions over whether
their economic models are
in danger of becoming ever
more dependent on oil and
the stimulus provided by
big government spending.
Faced with the revolts
sweeping other Arab coun-
tries, many Gulf govern-
ments have injected large
amounts of cash into their
economies, with Saudi Ara-
bia alone last year announc-
ing an estimated $130bn
investment. Part of this has
been pumped into indus-
trial activity, such as hous-
ing projects, while another
portion has gone straight
into the pockets of consum- government pays 50 per allies despite it not being Qatar’s financial strategy term. Its charitable and
ers, with some government cent of expatriates’ electric- a democracy. The is linked to its core social focus also help
workers in Qatar and the ity bills and over 85 per investment in the banlieue security concerns – it Qatar look good and while
United Arab Emirates see- cent of those of nationals. looks no different. needs its western allies. the plan has its roots in
ing their pay doubled. The Public protests in Kuwait Part of the suspicion of While Doha already has the Sarkozy presidency,
GCC also last year agreed are a reminder of the cen- French commentators the US security umbrella that it continues under
stimulus packages of $10bn tral conundrum facing Gulf stems from the difficulty and various agreements President Hollande
each over 10 years for countries: even if they want of evaluating what kind of with France and the UK, reinforces the flowering
Oman and Bahrain, which to recalibrate their econo- financial return Qatar it has been steadily bilateral relationship
is dealing with a 21-month- mies and curb state hand- could make from such a building these between Paris and Doha.
old uprising. outs, their political room to venture. Simultaneously, relationships, particularly Fear of Qatari motives
One result of this largesse do so is shrinking. Qatar’s well-known with London, over the seems unwarranted in this
is that Saudi Arabia is one “Countries like Saudi support of Islamists in the past few years. case. Doha’s rulers prize
of four GCC countries, with Arabia simply can’t afford Arab Spring has spawned Tens of billions of their western allies above
Bahrain, Oman and Qatar, to cut back spending,” said far-fetched reports in the pounds of investment in all else. They would be
at risk of falling into cur- Farouk Soussa, chief econo- French press, quoting London, not to mention loathe to see a tiny deal
rent account deficits over mist for the Middle East for military intelligence supplying a vast financially jeopardise
the next five years if the oil Citigroup bank. sources who accuse Doha proportion of the UK’s gas goals that they have been
price should fall from just “If they don’t diversify of supporting pro-Sharia requirement, guarantees aiming at for many years.
under $100 a barrel for the economy, create jobs armed militants in Mali. Qatar an appointment at David Roberts is deputy
benchmark Brent crude and continue social spend- Yet all this ignores a Downing Street whenever director for the Royal
now to $60 by 2017, says the ing, then there is a risk of long record of examples it wishes. Doha has also United Services Institute
IMF staffers’ report. political instability.” that suggest financial gain made a series of important (Qatar)
While not necessarily a
problem in itself – Saudi
Arabia has plenty of capac-
ity to borrow on local and
international markets, and
even to impose taxes if it
needs to – it does show an
increasing dependence on
high oil prices.
The break-even oil price
the kingdom requires to
balance its budget will
jump from $68 a barrel in
2010 to $110 in 2015, the
Institute of International
Finance, an industry group,
has estimated – but Saudi
officials have disputed this,
and one economist said pri-
vate sector non-oil growth
was much healthier than
many claimed.
“Non-oil growth is not
entirely stimulated by . . .
government spending,” said
the economist, who asked
not to be named.
Beneath the arguments
over possible future trends,
GCC countries are not loos-
ening – and in some cases
are strengthening – their
ties to economic practices
seen by many observers as
damaging. Perhaps top of
the list is energy subsidies,
which both encourage over-
consumption and drain
national treasuries. In the
UAE capital Abu Dhabi, the

Bargain stock hunters target Saudi

Markets watch
Regional equity
analysts are
looking for niche
opportunities to
invest, writes
Camilla Hall
Regional equity traders are
looking for cheap picks in
Saudi Arabia after concerns
over global economic
growth and fears of weak-
ness in the local building
industry prompted inves-
tors to sell.
Analysts say a combina-
tion of oil price falls, deeper
uncertainty over an ageing
leadership and worries
about the impact of possible
bad loans to the construc-
tion industry, are troubling
some investors. However,
amid the gloom, others are
seeing potential bargains.
EFG-Hermes, the largest
Arab investment bank
picked five companies this
week that it says were over-
sold after the bank down-
graded the Saudi stock mar-
ket on October 9.
“A lot of the sell-off in
Saudi Arabia has been
indiscriminate,” says Fahd
Iqbal, markets strategist at
EFG-Hermes in Dubai. “We
wanted to highlight some
names that are worth get-
ting into.”
The bank added Saudi
Dairy & Foodstuff Co.,
which has dropped more
than 6 per cent since Sep-
tember 15, to its Middle
East and north Africa top
20 list and recommended
four other Saudi companies.
The kingdom’s stock mar-
ket had been one of the
most resilient in the Gulf as
vast government spending
has seeped into the econ-
omy, boosting the banks
and other sectors.
The stock market is up
5.8 per cent in the year to
date but in recent months
has underperformed the
MSCI emerging markets
index.
The difficulty of investing
in the kingdom protects its
market to some extent.
While Gulf citizens can buy
shares directly in the Saudi
stock market, others can
invest only through cum-
bersome swap agreements.
The authorities have been
considering a gradual open-
ing up to foreigners for
years but it has yet to mate-
rialise.
The waning optimism in
Saudi stocks comes as econ-
omists at Jadwa Investment
and Citigroup have pointed
to underlying concerns that
state spending will lead to
budget deficits in the
world’s biggest oil exporter.
Regional equity analysts
are looking for niche oppor-
tunities to invest, rather
than towards the main driv-
ers of the Saudi market:
petrochemicals and banks.
Sabic, the world’s biggest
petrochemicals maker by
market value, dominates
the Tadawul exchange but
is highly dependent on glo-
bal customer demand, par-
ticularly Chinese economic
growth. With more than 900
employees in Greater China
and 18 offices, the country
is a key market for Sabic.
The company, while
exceeding estimates,
reported a 23 per cent drop
in net profit in the third
quarter from a year ago.
The banking index, more
recently a comfortable stal-
wart for regional investors,
has suffered as lenders’
profits failed to meet ana-
lyst estimates in the third
quarter.
While the Saudi banking
system outlook remains sta-
ble, structural risks such as
high loan and deposit con-
centrations and the lack of
transparency at privately
held family groups, repre-
sent a challenge, said
Moody’s, the rating agency.
Investors are particularly
keen to know whether trou-
bles at building company
Mohammed al-Mojil Group
are indicative of wider
weakness in the construc-
tion industry and if so, how
that will affect banks.
But those who fear a
repeat of the United Arab
Emirates’ banking crisis in
Saudi Arabia, which came
as a result of lenders’ expo-
sure to property, are wrong,
says Yazan Abdeen, fund
manager at ING Investment
Management in Dubai.
Mr Abdeen warns that
investors must differentiate
between lenders to find the
best deals. Those who suc-
ceed will be investors that
take the trouble to look
beyond the big picture of
decline and seek the value
of specific stocks, he adds.
14 ★

THE LEX COLUMN Thursday November 1 2012

Ford/General Motors
Home is where the heart is. And
these days it is also the best place
for Ford and General Motors to sell
cars. In third-quarter results released
this week, both companies handily
beat Wall Street’s expectations, even
though overall profitability fell. The
driving force was North America,
where pent-up demand and available
financing have led to a jump in car
sales. For the third successive
quarter, pre-tax profit at Ford North
America exceeded $2bn and its
operating margin topped 10 per cent.
General Motors reported a similar
number in the region – $1.8bn in
earnings before interest and taxes.
That is a drop from $2.2bn a year
ago, but still a solid showing.
Across the pond it is a different
story. Europe’s fiscal woes have led
Ford to warn that losses there will
top $3bn over the next two years.
With new vehicle sales having
reached a 20-year low this year in
the region, Ford is closing a plant in
Belgium and two in the UK. GM, for
its part, does not foresee break-even
in Europe until “mid-decade,” after
12 years of losses. GM is slashing
$800m in fixed costs through 2015
and reducing headcount in Europe
by 2,600 this year.
Meanwhile, both Ford and GM are
doing well in Asia, despite the
slowdown in China, but the region is
still not big enough to overwhelm an
ugly Europe. Ford, which is much
smaller but investing heavily in the
region, sold more of its Focus cars in
China than in North America or
Europe in the quarter. Earnings
before interest and tax for GM
International, which is dominated by
operations in China, almost doubled
to $690m, although most of the gains
came out of Australia and Korea.
At $11 a share, Ford trades at 8
times projected earnings for 2013.
GM, at $25, is trading at 7 times
forward earnings. They both may
stay relatively cheap until Europe
perks up. Forget them, though, if
North America stalls.
ArcelorMittal
Think back to the mergers that gave
rise to ArcelorMittal. With the US
and European steel industry crippled
More chaebol than they’re worth
Chaebol-bashing is an election ritual
in South Korea. But for this year’s
vote, due in December, campaigns to
reform the country’s giant family-
run conglomerates are taking centre
stage. With economic growth falling
to the slowest pace in three years in
the latest quarter, and household
debt at more than 150 per cent of
disposable income, South Korea’s
small companies that largely depend
on domestic services are struggling
against the might of their giant
compatriots.
That dynamic should interest
investors because South Korea’s
equity markets are largely a
reflection of its chaebols. Samsung
is by far South Korea’s biggest
family conglomerate. The KrW210bn
($190bn) market capitalisation of its
technology giant, Samsung
Electronics, makes up almost a fifth
of the Kospi’s weight. The latter’s
share price has jumped by a quarter
this year on the back of the
popularity of its Galaxy smartphone.
Samsung’s smaller technology
groups are part of the Galaxy’s
supply chain – another 7 per cent of
the Kospi index. Other chaebols
including Hyundai and LG make up
a further third. The chaebols’
opaque ownership structure puts a
the other companies that cashed in
during the boom years and are now
paying the price.
Yesterday’s two-fifths fall in third-
quarter earnings before interest, tax,
depreciation and amortisation was no
worse than expected, but higher net
debt and a lower dividend rattled
investors. With shares down 80 per
cent from their peak, ArcelorMittal
cannot afford to fail in its plans to
extract itself from its misery.
Urgent action is needed. At $23bn,
the group’s net debt is more than 3
times forecast 2012 ebitda, adrift of
its previous target of under 2 times
and uncomfortably close to its debt
covenant level of 3.5 times. Its ebitda
margin has dropped 13 percentage
points from almost 20 per cent in the
boom years, and return on equity
has crashed from about 20 per cent
to below zero. Shaving a planned
$5bn off net debt to placate rating
agencies requires a dramatic
Korean lost
South Korean chaebols
Weight in Kospi (%)
Samsung
13%
25%
7%
13%
42%
Non-chaebols
Sources: Bloomberg; Thomson Reuters Datastream
ceiling on valuations. Shares in
South Korea have traded at a 30 per
cent discount to Asia-wide indices.
Investors question whether their
interests are foremost – such as
when a company sources from a
supplier within the chaebol over
cheaper alternatives. In Samsung’s
case, although the Lee family
behind the group owns barely 5 per
cent of its main electronics group,
the chaebol in effect controls 18 per
cent of voting rights through stakes
closures are politically fraught.
Tough. Worryingly, asset sales have
netted only $1.7bn in a year, yet the
company has blown $2.2bn on
growth capex – rash when mining
companies are reining in theirs. It
was too ginger with its dividend cut
to 20c a share. ArcelorMittal may
regret not acting sooner if it has to
ask its investors for cash. It risks
going from spotting trends to being
overtaken by them.
Short selling ban
Out of the chaos comes . . . well,
confusion. Four years ago, amid the
market turmoil, numerous countries
imposed short selling bans. Each had
its own variation. Result: a trader’s
nightmare. In the European Union,
this spurred rules aimed at ensuring
a co-ordinated approach to such
restrictions. Onto these regulations
were tacked more politically driven
South Korean versus Asian equities
Forward p/e
14
Hyundai
South Korea
12
Asia
LG
Other
10
chaebols
8 results that amounted to a profit
6 putting its cash flow and investment
Jan 2011 2012 Oct
MSCI indices
held by other subsidiaries, reckons
Citi. Samsung’s dominance over the
past 50 years has also made it hard
for large companies to emerge. Only
NHN Corp has succeeded by
becoming an $11bn market cap
internet company in just 10 years.
If any political attack on chaebols
is excessive, this will hurt
investors. Short of that, any effort
to improve these opaque structures,
as well as the rights of investors, is
welcome.
principal trading venue is in the EU
regardless of the trader’s location, as
well as debt issued by EU counties –
ban naked short selling. They also
impose heavier, harmonised
disclosure requirements. What is not
restricted is a short sale of shares
(or sovereign debt) provided
enforceable borrowing or delivery
arrangements are in place. So, since
most short selling is covered, the
main result may be a reduction in
the number of failed transactions
(because of beefed-up delivery
requirements), and extra, costly
disclosure work. EU sovereign CDS
outstanding have also fallen sharply
ahead of the new rules, in part
probably due to these, although the
decline is not confined to the EU.
Regrettably, though, the new rules
will enter into force without final
details of market maker exemptions.
More significant, it is still unclear
what happens when an individual
TODAY ON FT.COM
impose a new similar three-month China’s transition
ban. Their response will doubtless be
rapid – but for traders or investors, Podcast: FT experts
this hardly amounts to order and
certainty. Plus ça change.
analyse the host of
challenges facing
BG Group China’s new leadership
For a company so tightly wound after its unveiling
financially and operationally that a
single mistake can be wildly over- next week
interpreted, BG Group made three www.ft.com/worldweekly
yesterday. It announced third-quarter
warning. It said the production
growth rate would be flat next year,
projections in doubt. And it sold a
stake in its Australian liquid natural
gas project to Cnooc for a meagre-
looking $2bn. BG’s shares tumbled
15 per cent, creating the image of a
company at risk of unravelling.
Frank Chapman has spent a
decade building BG into an oil and
gas producer on the brink of joining
the supermajors. It has targeted
production of 1.4m barrels a day by
EU naked short
2020 and a compound annual growth
rate of 6-8 per cent. It is a market
selling ban
darling, trouncing BP and Shell for
outperformance over 10 years. But
Video: Lex’s Stuart Kirk
building is one thing, and delivery and Nikki Tait discuss
another. As a producer, BG is
struggling to convince. It cut its 2012 the new world for
production growth target to 3 per trading and hedging in
cent in July; now it says it will be
the same next year. Given its $22bn eurozone amid short
capital expenditure programme for
this year and next, the hit to cash
trading rules shake­up
flow will have consequences. www.ft.com/lexvideo
The investment case for BG rests
on extracting the full value of its
assets in Brazil and Australia. In the
former, it is dependent on an
increasingly bloated Petrobras to
Most read
deliver oil from expensive-to-exploit
pre-salt fields. The sale of part of the
Queensland LNG project to Cnooc –
the two have also agreed a long-term
supply contract – is probably smart,
but its inclusion in yesterday’s
blizzard of news sells the deal short.
BG looks overwound on many
fronts. Before yesterday’s undoing, US hurricane leaves trail of
its shares were trading at a multiple 1 devastation
of nearly twice the sector; there is
still a significant premium attached.
The rating was becoming hard to 2 UBS takes swift action on job cuts
justify amid the production snafus
and Sir Frank’s imminent retirement.
Now it looks entirely unwarranted. 3 China
islands
raises stakes over disputed

by overcapacity and high costs, the
consolidation the steelmaker pulled
off seemed bold. But the company
was not rewarded with the sort of
enduring boost to profitability that
might have been expected. Today’s
recovery in profitability given limp
steel demand and a world glut.
ArcelorMittal must sell assets,
close or shutter plants, cut spending
and slash its dividend. It has made a
start, cutting 15-20 per cent of
measures affecting the trading of EU
sovereign credit default swaps. The
new regime begins today.
Whether this will have a
significant impact on market activity
is debatable. The new rules – which
EU country wants to outlaw covered
short selling. Spain, where a wide- LEX ON THE WEB 4 Shocked UBS staff take to Twitter
ranging ban was introduced in July,
is a case in point. Because of the For a Lex note on Barclays go to
www.ft.com/lex
new EU rules, its ban ran only until
October 31. But Spain is now telling For email, go to www.ft.com/nbe 5 New
storm
York subway devastated by

ArcelorMittal simply looks like all European capacity, but plant apply to all securities whose EU regulators that today it plans to

ACROSS 3 Musical composition providing

CROSSWORD 1 Engineer with difficulty mentioned problem in court? (5)
No. 14,150 Set by SLEUTH piece of furniture (7) 4 Determination shown in renovation
5 Dubious group of workers by yard of neat built-up area (8)
       (6) 5 Seat is designed for a nap (6)
8 Prestigious award favoured in social 6 Northern worker first at excavation
event gets commanding position (9) feeling anger (9)
   9 Fool caught in sandy area (5) 7 Feature of plant giving nurse
11 Former runner almost completed endless bother (7)
races (5) 10 Quarrel physically in business area
 
12 Absolute jazz fan, male infused with getting depressed in the Bahamas
energy (9) (8,5)
13 Smarten up object exhibited by four 14 Light food with value on TV to be
in gallery (8) distributed (3-2-4)
  
15 A lot initially bound to return for 16 Very good time to take in much of

foreign dish (6) river in county (8)
17 Retired woman accommodated by 18 Fashionable part of farm above lake
    observer mostly without a hitch? (6) is close to church (7)
19 March sees son also getting into 20 Dog, an enticing thing with tail

sport on reflection (8) docked by singer (7)
  22 Military order recalling solver’s 21 No hand is raised carrying European
past? (2,3,4) gun, say (6)
23 Abandon insignificant type (5) 23 Consignment of drugs remains
24 Cut in turn portion of beef in kitchen below road (5)
 
(5)
25 A foreign character wearing top is SOLUTION 14,149
styled in light green (9) 7 + ( 6 8 / / , 9 $ 1 6
  26 Party organiser ignoring pressure, + ( 7 2 1 0 ( )
( & / $ , 5 6 $ ' 0 , 5 ( 5
figure free from guilt (6) 5 / 1 7 ' $ , ,
27 This star unexpectedly ditches a set 2 : , 1 * 6 ( , 1 ) ( / '
JOTTER PAD of clothes (1-6) ,
&
2
2 1
5
7 $
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& < 0 $ % )
DOWN 2 * 5 ( % / $ & . $ ' ' ( 5
8 2 / < 5 5 (
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with the media? It’s inaccurate / % ( , * $ 0 =
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7 & . , ( , ( 5
2 Stop around Malta to get support (7) . 1 2 : 7 + ( 6 & 2 5 (

Burton Malkiel Time to strike a deal to preserve money market funds
© THE FINANCIAL TIMES LIMITED 2012
News Briefing
Euro
Against the dollar ($ per €)
Potash in talks with Israel rival
1.32 Oct 31 2012
Oct 1 2012 1.2958 Fertiliser deal requires
1.2905
1.30
government approval
Move signals further
1.28 industry consolidation
Source: Thomson Reuters Datastream By Emiko Terazono and
Euro edges above $1.30 Javier Blas in London and
before falling back, Page 28 Vita Bekker in Tel Aviv
Potash Corporation of Saskatch-
Companies ewan, one of the world’s largest
fertiliser groups, has
Disney sees Stars approached the Israeli govern-
Lucasfilm deal brings ment for approval to buy rival
Israel Chemicals (ICL), which
‘universe’ of intellectual has a market value of $15bn.
property, says chief. Page 17 The companies disclosed the
Mittal slowdown fears
China is casting a shadow
over global economy, steel
magnate warns. Page 16
Chinese banks doubts
Berkshire bets on
Lenders beat forecasts,
but slower economy may
end good run. Page 18
housing recovery
Storm in spotlight By Dan McCrum in New York
Hurricane Sandy brings Warren Buffett’s Berkshire
spike in viewing figures to Hathaway has made another bet
Weather Channel. Page 16 on a recovery in the US housing
market, agreeing to lend the
Corriere battle revives conglomerate’s trusted brand to
a new venture with Brookfield
Newspaper’s need for Asset Management.
capital reopens door to Berkshire’s HomeServices of
power struggle. Page 19 America unit will be the major-
ity owner of a network of fran-
chised real estate agencies,
which will offer services next
year under the name Berkshire
Hathaway HomeServices.
Brookfield will contribute a
network of more than 53,000
individual estate agents respon-
sible for $72bn of residential real
estate sales last year. The group
acquired the business last year
from Prudential Financial, but
GM sees green shoots did not retain the rights to the
Carmaker poised to Prudential name, which are
narrow losses and break taken back as existing franchise
even in Europe by middle agreements expire.
Mr Buffett told CNBC this
of decade. Page 18 month he remains bullish on
the US economy, which he
Telenor shifts stance expects to continue “inching
Norwegian telecoms group ahead” even as global growth
opens door to sale of slows.
The billionaire investor said
VimpelCom stake. Page 19 that Berkshire’s businesses
have already begun to see a
Panasonic gloom pick-up in demand related to
Japanese group warns improvements in the residential
that it faces $10bn loss property market, and as a conse-
quence he expects them to hire
for second consecutive about 8,000 people in response
year. Page 17 this year.
Inside Business
Publishers must not
succumb to digital
kryptonite. Page 16
JPMorgan files lawsuit against
Markets & Investing
Short selling unease
London Whale’s former manager
Late guidance on new
By Caroline Binham and
EU rules leaves markets Brooke Masters in London
unprepared. Page 26
JPMorgan Chase, the bank that
HK ‘hot money’ concern lost at least $5.8bn through a
massive credit derivatives posi-
Territory’s authorities
tion created by a trader nick-
react against apparent named the “London Whale”, has
influx of capital. Page 27 filed a lawsuit against his boss.
The bank issued a claim in
Intesa bond furore the High Court in London last
week against Javier Martin-
Investors and analysts up Artajo, court records show. Mr
in arms over Italian bank’s Martin-Artajo supervised Bruno
exchange offer. Page 26 Iksil, the trader who led the
team that was allegedly respon-
Trading Post sible for the losses, and who was
known by the monikers “Volde-
FTSE 100 returns to mort” and the “whale” for his
no­man’s­land as it stops outsize position.
short of 6,000. Page 27 While the bank has filed its
claim in court, it has not yet
Companies and sectors in this issue
Companies China Construction Bank........18
AG Barr.......................................28 Christian Science Monitor.......16
Agricultural Bank of China......18 Cnooc......................................14,16
Air France­KLM....................16,28 Comcast......................................16
Alfa Group...................................19 Consolidated Edison...................3
American Express ..................... 12 Constellation Energy.................18
Anheuser­Busch InBev.............16 Deutsche Bank...........................18
Apple.......................................17,28 Duracell ......................................16
ArcelorMittal .................... 14,16,28 Eaton...........................................28
BG Group.........................14,16,28 Enron............................................18
BHP Billiton ................................ 15 Facebook ............................... 12,28
BMI...............................................16 Fiat.....................................18,19,28
BP ...................................... 14,16,28 Fondiaria­Sai...............................19
Bain Capital .............................. 16 Ford................................2,14,18,28
Bank of America.......................28 Fresenius Medical.....................28
Bank of China............................18 General Motors...............14,18,28
Barclays...............................1,18,28 Generali ....................................... 19
Belaruskali...................................15 Genworth Financial...................28
Benetton......................................19 Goldman Sachs.....................11,28
Berkshire Hathaway..................15 Google..........................................16
Blackstone Group ....................16 Guardian......................................16
Britvic .........................................28 Huffington Post ......................... 16
Brookfield .................................. 15 Hyundai ....................................... 14
Cairn Energy..............................28 ICBC.............................................18
Chicago Tribune........................16 International Airlines Group....16
★ 15
FINANCIAL TIMES
Thursday November 1 2012
Page 26
Week 44
The Short View
James Mackintosh
talks in regulatory statements
yesterday, but said the discus-
the global fertiliser industry,
after the $24bn merger of Ural-
estimates by consultant CRU.
Israel’s competition authorities
it has been rebuffed by Israel’s
regulators. Israel sees ICL as an
sions were preliminary and Kali of Russia and domestic will review the deal, but the sale important asset and holds a
there was no assurance of any rival Silvinit in 2010. of a natural resources asset is “strategic” share that entitles it
transaction. The consolidation has concen- politically sensitive. to certain veto rights.
The fertiliser industry trated 80 per cent of global pot- Guil Bashan, at broker IBI in Israeli officials confirmed the The language was different in
emerged into the spotlight after ash supplies, a key nutrient for Tel-Aviv, said the chances of a meeting between Benjamin 1787 but restrictions imposed
the 2007-08 global food crisis, agriculture, in the hands of just deal was “quite low”, especially Netanyahu, Israel’s prime minis- on the earliest insurance
when the price of potash six companies: Potash; UralKali; with a general election in Israeli ter, and Bill Doyle, Potash chief against government failure to
jumped 10-fold. Fertiliser prices Belaruskali, in Belarus; Mosaic in January. “Selling an asset executive, and Israel Corp said pay almost perfectly matches
collapsed during the financial of the US; ICL; and K+S in Ger- like ICL will create a lot of pub- it knew Potash had held discus- today’s European ban on
crisis, but the industry has still many. A Potash/ICL deal could lic opposition, which the govern- sions “with various governmen- uncovered sovereign credit
seen some of the hardest-fought prompt anti-trust concerns in ment will not want to face.” tal authorities” in connection default swaps.
merger and acquisition battles China, India and Brazil, the big- Potash is the second-largest “with the examination of a pos- The attacks now are on
in the natural resources sector. gest potash importers. Potash is shareholder in ICL, with 13.8 per sibility for a merger between “speculators” intent on hurting
The talks between Potash of the largest producer by capac- cent. Israel Corporation, a hold- ICL and Potash”. government finances. Back in
Canada, valued at $34bn, and ity, with 20 per cent of the ing company, has 52.3 per cent. ICL shares jumped 5.2 per 1787, insurance on government-
Tel-Aviv-listed ICL are the latest industry. ICL is the fifth largest Potash has been trying to cent while Potash shares edged issued lottery tickets was “the
in a round of consolidation in with 9 per cent, according to acquire ICL for a decade. So far, up 0.8 per cent. spirit of gambling in its most
alarming extent”.
In both cases, the aim was to
stop side-bets and ease the flow
of funding to government.
Co­ordinating style Calvin Klein reunites
European rules that come
into force today ban CDS on
governments unless the buyer
owns a bond or another closely
correlated asset – just as with
the lottery insurance limits.
Europe’s politicians argued
that speculation in the CDS
markets – often easier than in
The latest deal comes as Berk- cash bonds – could influence
shire, a conglomerate with more bonds themselves, so should be
than 70 different businesses, has banned (notice they imposed no
positioned itself for a recovery restriction on speculating that
in US housing as foreclosure a country’s credit will
rates decline and record low improve). The Commission
interest rates encourage buyers disagrees, fearing a ban on
back into the market after six CDS speculation could make
years of declining prices. trading bonds harder by
HomeServices is the second pushing up the cost of the
largest full service residential credit insurance.
brokerage firm in the US, the The real problems of CDS,
company said. Acquired with such as transparency and the
the MidAmerican utility com- complexity and number of
pany in 1999, it has been built contracts, have been dealt
by buying up real estate broker- with. That leaves the true
ages around the country. Berk- justification for the ban: no one
shire has also acquired a brick- likes a short seller.
maker and this month agreed to From 1929 to 2008, Enron to
pay $1.5bn for a portfolio of Lehman, short sellers always
home loans from Residential seem to be blamed for crashes.
Capital, the bankrupt mortgage The short sellers were right
lender. about both Lehman and
Mr Buffett’s optimism has Greece. Speculators may have
also begun to be backed by eco- speeded up the market’s
nomic indicators. discovery that share and bond
New home construction in the prices were too high, but both
US surged in September to its would have failed eventually.
fastest pace in more than four Dick Fuld, Lehman chairman,
years, offering further evidence said he wanted to “tear [a
the housing sector was regain- short seller’s] heart out and eat
ing strength. it before his eyes while he’s
Housing starts rose 15 per still alive”. Sadly for sovereign
cent in September, to a season- CDS, Europe has a similar
ally adjusted annual rate of view. Alternatives are already
872,000 units, the fastest pace of being discussed, from Intrade
growth since July 2008. bets to structured products
Brookfield acquired Pruden- Clothing company PVH is to pay $2.9bn in cash and stock for the Warnaco Group, uniting Calvin based on bonds and interest
tial Real Estate and Relocation Klein clothing with its jeans and underwear brands Report, Page 18 Getty rate swaps. The cleaned-up
Services for about $100m in CDS market would be better.
December 2011, according to
financial disclosure. www.ft.com/shortview
served it upon Mr Martin- ment. The bank’s lawsuit, which
Artajo, who will not have an was first reported by Bloomberg
opportunity to file his response News, follows a July pledge that
until after that stage. This also it would attempt to claw back
means no details of the bank’s bonuses from the traders
arguments are publicly availa- involved. The trading fiasco
ble. The bank has up to four marred the bank’s reputation
months to serve its claim. for risk management. It sparked
Mr Martin-Artajo is “deeply an internal investigation, regu-
disappointed” by the bank’s latory inquiries, and in Septem-
action, said his solicitor, Greg ber caught the attention of the
Campbell at Mishcon de Reya. powerful US Senate subcommit-
“Mr Martin-Artajo is confident tee on investigations.
that when a complete and fair Mr Iksil and Mr Martin-Artajo
reconstruction of these complex have left the bank. US authori-
events is completed, he will be ties, including the Federal
cleared of any wrongdoing,” he Bureau of Investigation, are
said. Mr Campbell added: probing JPMorgan over the situ-
“There was no direct or indirect ation. The UK’s Financial Serv-
attempt by him at any time to ices Authority is investigating.
conceal losses.” With additional reporting by
JPMorgan declined to com- Tom Braithwaite in New York
Intesa Sanpaolo...................19,26 Panasonic....................................17 Tullow Oil....................................28
Israel Chemicals......................1,15 Petrobras................................14,16 UBS...........................................7,16
JPMorgan..........................15,18,28 Petrofac ...................................... 28 UniCredit ..................................... 19
K+S...............................................15 Philadelphia Inquirer.................16 Unipol...........................................19
KPMG .........................................16 Phillips 66...................................26 UralKali ........................................ 15
Kenneth Cole..............................12 Pirelli ............................................ 19 VimpelCom ................................. 19
Kinder Morgan .......................... 26 Potash Corp.............................1,15 Visa..............................................28
King Of Shaves..........................12 RCS MediaGroup.......................19 Vodafone.....................................12
Kodak...........................................12 Resolution...................................28 Walt Disney.................................17
Rocky Mountain News.............16 Warnaco Group..........................18
Los Angeles Times ................... 16
Rosneft ................................... 16,19 Warner Brothers........................17
Lufthansa...............................16,28
Royal Dutch Shell.....................26
MasterCard ................................ 28 Weather ..................................... 16
Samsung.................................14,17
McGraw­Hill Companies..........28 Western Union...........................28
Saudi Aramco............................26
Mediaset......................................19
Sharp............................................17
Sectors
Mediobanca ................................ 19 Banks ................................. 4,6,7,18
Shell..............................................14
Morgan Stanley.........................28 Electricity.....................................18
Silvinit...........................................15
Mosaic..........................................15 SoftBank......................................16 Electronic Equipment................17
Mozilla..........................................12 Sony ............................................. 17 Gen Financial.........................14,18
Munich Re .................................... 3 Standard Life.............................28 Gen Industrials...........................14
NHN Corp...................................14 Starbucks....................................12 Investment Comp.......................4
New York Times........................16 TNK­BP...................................16,19 Media..................................16,17,19
Newsweek...................................16 Telenor.........................................19 Mining .......................................... 15
NuStar Energy...........................26 Time Warner Cable..................28 Mobile & Telecoms...................19
PBF Energy................................26 Tod’s ............................................ 19 Oil & Gas............................4,14,16
PVH .............................................18 Total.............................................16 Personal Goods ......................... 18
16 ★ FINANCIAL TIMES THURSDAY NOVEMBER 1 2012

COMPANIES

Publishers must not succumb to digital kryptonite

Andrew
Edgecliffe­Johnson
INSIDE BUSINESS
on Media
Clark Kent has quit the Daily Planet
newspaper, according to the latest
Superman comic, heading for the
blogosphere as his editor dubbed print “a
dying medium”. But Superman’s journalist
alter ego is not alone. Tina Brown, one of
the most talked about magazine editors of
her era, is ending Newsweek’s print
edition after 80 years, declaring that the
print/digital “tipping point” is upon us.
Ms Brown’s decision seemed to confirm
for many what she called the “inexorable
trend” of print decline – for magazines,
newspapers and books – in the digital age.
Yet the dynamics of that decline and the
strategies for managing it deserve closer
scrutiny: for all the predictions that print
may disappear, remarkably few publishers
have switched to an all-digital strategy.
In 2009, when the financial crisis proved
the last straw for the Rocky Mountain
News, most analysts predicted a far bigger
toll. The Seattle Post-Intelligencer went
online-only. The Christian Science Monitor
moved to weekly printing. The
Philadelphia Inquirer, the Chicago Tribune
and Los Angeles Times went bankrupt.
The pressure has been intense:
Newspapers have lost nearly a third of
their share of advertising budgets in four
years, as Alan Mutter, a newspaper
analyst, noted this week. But now, as the
Tribune titles prepare to emerge from
Chapter 11, it is striking that not one of
the titles has disappeared. Their cost bases
have shrunk, but the worst fears about the
fourth estate have not been fulfilled.
It is too easy to blame every failure on
the print to digital format shift. Across
media, from broadcasting to publishing,
business model changes are widening the
gulf between strong and weak brands.
Newsweek’s rapid descent contrasts with
more stable stories at competitors
including Time, The Week and The
Economist (half owned by the FT Group).
Analysts even predict that magazine
publishers are about to start growing
again. eMarketer, a research firm, sees US
print advertising budgets staying steady,
slightly above $15bn, between 2010 and
2016. Growing digital spending in that
period will lift total US magazine
advertising from $17.5bn to $19.2bn.
The outlook for ads remains uncertain
as analysts bring forecasts down again
after a tough third quarter, and merely
hoping for an upswing will not save those
publishers that still rely too heavily on
ads. Newsweek, like many magazines in a
country where news-stand sales account
for only a small portion of total revenues,
has heavily discounted print copies to
guarantee a large audience for advertisers.
As ad revenues started to tumble it did
little to raise circulation pricing and, even
as its print subscribers halved to 1.5m, it
found only 41,000 digital subscribers. In
contrast, the New York Times had 566,000
digital subscribers in September.
Many publishers are finding more
success with digital subscriptions. The
Audit Bureau of Circulations reported this
week that digital editions accounted for
15.3 per cent of US newspaper circulation
from April to September, up from 9.8 per
cent a year earlier. As a result, the 613
newspapers it measures recorded a fall in
daily circulation of only 0.2 per cent, and
Sunday sales actually rose by 0.6 per cent.
But as traditional models shift, there are
still few examples of digital-only success.
Alan Rusbridger, editor of The Guardian,
this month dismissed a report that his
newspaper may drop its print edition with
a telling tweet: “Numbers for going digital
only & junking print just don’t add up.”
Numbers for all-digital news brands such
as the Huffington Post are hard to come
by, and if Newsweek thrives as a digital-
only product it will be bucking the trend.
When Rupert Murdoch launched The Daily
as a tablet newspaper in February 2011 he
said it could break even with 500,000
subscribers. By July this year, it had
barely more than 100,000 subscribers.
It is tempting for publishers to focus
only on digital strategies, but they must
also think about how to manage their
declining print businesses and how to
keep up the value of their journalism,
regardless of medium. The music industry
discovered this to its cost. For a decade
after Napster launched, executives scurried
to find new digital business models,
neglecting the CD even as it represented a
majority of their revenues. Newspapers
and magazines risk repeating the mistake.
For more than a decade, investors have
asked publishers what their digital
strategies are. It is time to ask about their
print strategies, too. Perry White, Clark
Kent’s editor, was right to say The Daily
Planet’s only hope was to “give the people
what they want . . . on the television, or
QPad [sic], or cellphone.” Had he added
“or newsprint”, maybe Superman would
have stayed.
Andrew Edgecliffe-Johnson is the
Financial Times’ media editor
andrew.edgecliffe­johnson@ft.com
www.ft.com/insidebusiness

Mittal COMPANIES ROUND­UP

BG’s lowered forecasts

warns on spark doubts over future

OIL & GAS The cut forecasts com-
pound concerns over the

China’s
BG Group is facing doubts
about its ability to chal-
lenge the oil majors after
the FTSE 100 energy group
cut its production forecast
for this year and next, wip-
future leadership of BG,
whose chief executive, Sir
Frank Chapman, is sched-
uled to step down early
next year.
BG attributed the slide in

slowdown
INDUSTRIAL METALS
Steelmaker dividend
cut as sales slide
By Peter Marsh in London
Lakshmi Mittal warned that
the slowdown in China was
casting a further shadow
over a “fragile” global econ-
omy, after announcing that
ArcelorMittal, the world’s
biggest steelmaker by sales,
slid into a third-quarter net
loss.
The chairman, chief exec-
utive and main owner of
the company also said it
would cut dividend pay-
ments for next year as it
tries to conserve cash and
reduce debts to allay fears
about high borrowings.
Mr Mittal said the “very
challenging operating con-
ditions” for the company
would continue into the
months of 2011 when the
net loss came in at $1bn.
The move on dividends
means payments will fall
from 75 cents a share this
year to 20 cents a share in
2013. This will lower Mr
Mittal’s dividend income
from the 41 per cent of
ArcelorMittal that he owns
from about $473m this year
to $130m. Mr Mittal said the
company was continuing to
look for ways to cut its bor-
rowings through efficiency
improvements and a plan of
“asset optimisation” built
around disposing of surplus
assets.
A worrying sign for the
company, however, was
that net debt rose $1.2bn
from the end of June to
$23.2bn at the end of Sep-
tember, partly because of
extra requirements for
working capital linked to
weak demand. ArcelorMit-
tal wants to reduce the net
ing more than £6bn off its the production outlook to a
market value. series of deferrals or delays
Analysts were surprised on projects in the North
by the scale of warning on Sea, US, Egypt and Brazil.
production levels. Some The guidance came in a
suggested yesterday’s share third-quarter results state-
price fall of almost 14 per ment issued a day ahead of
cent could reignite takeover schedule. Shares closed
speculation. down 182p at £11.48p.
Malcolm Graham-Wood, Michael Kavanagh
analyst at VSA Capital, said See Lex
the forecasts had “spooked
the market, appropriately
on Halloween”, adding that
a persistent downward revi-
sion in BG’s valuation
could invite suitors.
“BG has been on the
radar screen for a number
of international oil compa-
nies as a target for many
years and today will cer-
tainly have reignited a lot Sir Frank Chapman is to step
of interest,” he said. down as CEO next year
Cost reductions bolster
Air­France and Lufthansa
TRAVEL & LEISURE a €957m net loss – or €3.24
Jim Cantore reports in Florida. The Weather Company attracted more than 1bn page views ealier this week loss per share.
Shares in Lufthansa and Lufthansa reported oper-

$709m
Net loss in the quarter to
the end of September
fourth quarter, with this
view providing few indica-
tions of any strong upturn
in 2013.
Steelmaking has been
among the hardest hit
among large industries by
the subdued global eco-
nomic conditions that have
remained in place since the
financial crisis.
ArcelorMittal swung to a
net loss for the three
months to the end of Sep-
tember of $709m, from net
income of $659m in the
same period last year.
Sales in the third quarter
fell 18.5 per cent compared
with last year to $19.7bn.
The last time the com-
pany made a quarterly net
loss was in the final three
debt to $22bn in the next
two months, in an effort to
improve the company’s
credit rating.
The company pointed out
that at the end of Septem-
ber it had $13.4bn in cash
and other instruments capa-
ble of being converted into
cash, while its scheduled
debt repayments next year
are less than $4bn.
ArcelorMittal said that
earnings before interest,
tax, depreciation and amor-
tisation in the third quarter
came to $1.3bn, well down
on the $2.4bn recorded in
July-September last year.
The company expects
ebitda for 2012 to come in at
about $7bn, against $10.1bn
last year.
The third-quarter ebitda
number was the lowest
quarterly ebitda for Arcelor-
Mittal for three years.
See Lex
Sandy whips up Weather viewers
Meteorologist Jim Cantore
stood close to the waves
crashing against the sea wall
in Battery Park City in New
York City on Monday,
shouting about the likelihood
of a storm surge flooding
Lower Manhattan as gusts
of wind whipped around
him, writes Emily Steel in
New York.
Mr Cantore describes
himself on Twitter as a self­
proclaimed weather geek.
This week, he is part of the
Weather Company’s army of
meteorologists reporting
about hurricane Sandy
pummelling the US East
Coast.
Severe weather conditions
can be a boon for bringing
audiences and related ad
dollars to news networks.
But for a network
specialising in weather
coverage, storms like Sandy
– dubbed “Frankenstorm” –
are the Weather Company’s
time in the spotlight.
The privately held
company – owned by
Comcast’s NBCUniversal and
the private equity firms Bain
Capital and the Blackstone
Group – does not disclose
revenue figures but noted it
has a “significant spike” in
its business during storms.
As of yesterday, at least
40 people had lost their
lives across eight states in
the US because of the
storm. Dozens more died in
Caribbean nations such as
Haiti and Cuba.
For the Weather Company,
hurricane Sandy is shaping
up to be one of its biggest
severe weather events to
date. On Sunday, Monday
and Tuesday combined, the
Weather Company attracted
more than 1bn page views
across all digital platforms.
That is nearly four times its
previous record from a
blizzard in February 2011.
On television, the Weather
Channel had the highest
reach of any cable network
on Sunday and Monday with
more than 39m and 46m
people tuning into coverage
on each of those days. Its
live stream on YouTube
generated nearly 10m views
during the storm.
Some marketers buy
storm ad packages during
annual upfront negotiations
with the Weather Channel in
the spring. Duracell batteries
and Travelers Insurance, for
instance, both sponsored the
company’s storm coverage.
Several marketers also
buy ads at the last minute
because the surge in
weather­related viewership
can suck audiences away
from other television
networks.
The Weather Company
contacts marketers as
weather conditions become
more serious to alert them
of the storm and the
opportunity to get their
commercials in front of a
captive storm­watching
audience.
Air France-KLM rose yes-
terday after the European
airlines said cost cutting
had helped push their prof-
its beyond market expecta-
tions this year.
Air France-KLM’s under-
lying operating profits in
the three months to Sep-
tember increased by almost
a third year on year, to
€506m – beating consensus
forecasts by a fifth. It attrib-
uted the improvement to
cost savings and stronger
passenger yields, which off-
set the effect of shrinking
cargo traffic.
The company said this
divergence in the perform-
ance of its passenger and
cargo businesses would con-
tinue for the rest of the
year, but it would still meet
its full-year targets.
The group’s sales for the
first nine months of the
year were 5.4 per cent
higher, at €19bn, producing
ating profit of €628m in the
first nine months of 2012 –
down about €100m on the
same period last year but
beating analysts’ expecta-
tions of a 20 per cent
decline. This growth came
in spite of fuel costs that
were €1.1bn higher year on
year, and strikes by cabin
and ground crew.
Christoph Franz, chief
executive, said cost-cutting
would have to “intensify”
given the difficult macro-
economic environment and
increased competition from
low-cost and Middle Eastern
carriers.
He pointed to opportuni-
ties such as sharing IT and
purchasing across all the
group’s carriers.
Lufthansa shares rose
7 per cent in Frankfurt to
€11.79. Air France-KLM
shares closed 8.4 per cent
higher at €6.45 in Paris.
Rose Jacobs

More news at FT.com

●KPMG leads way in
Myanmar investment
KPMG has become the first
of the big four professional
services firms to open a
Myanmar office, in what
some observers see as a
crucial step in the entry of
big western investors to the
country. The move
highlights Myanmar’s rapid
opening after western
governments eased
economic sanctions earlier
this year.
●Anheuser­Busch InBev
boosted by US sales
Anheuser­Busch InBev,
(pictured) the world’s
largest brewer by sales,
reported robust third­quarter
revenue growth as the
financial impact of slower
business in central and
eastern Europe was offset
by improved sales in the
US and Brazil. The Belgian
company said revenues per
hectolitre grew 10.2 per
cent in the three months
ending September 30,
despite a 0.3 per cent
decline in volumes.
●SoftBank full­year
results guidance on track
SoftBank, the Japanese
telecoms company in the
middle of buying US
operator Sprint Nextel, has
posted a small rise in
quarterly operating profit
and kept guidance for the
full­year intact, even as it
continues to spend on
network upgrades and
luring new customers.
Adoboli accused in court
of ‘playing God’ at UBS
BANKS
Kweku Adoboli, the former
UBS trader alleged to have
conducted unauthorised
trading that led to $2.3bn of
losses, was accused of “play-
ing God” and “tearing up
the rules” by prosecutors.
Sasha Wass QC, prosecut-
ing, compared Mr Adoboli
to Jérôme Kerviel, the con-
victed rogue trader at
French bank Société Géné-
rale, telling him that both
men had moved from the
back office to become Delta
One traders. “You knew
how to get round the proce-
dures just like Mr Kerviel,”
said Ms Wass in her cross
examination, adding: “You
did the same thing as him
and you are running the
same defence as him.”
The jury at Southwark
Crown Court was read a
warning email sent by UBS
in 2008 alerting its staff to
the SocGen rogue trading
incident. Ms Wass told Mr
Adoboli that Mr Kerviel had
exceeded risk limits and
booked fictitious transac-
tions “just like you”.
Mr Adoboli told the court
that his “deep belief” in the
Kerviel case was that Soc-
Gen “pushed him really
hard” and “there was no
way” that the French bank
didn’t know what he was
doing.
“As long as it was profita-
ble they were happy and
when it finished – in the
end in catastrophe – they
put him in prison,” Mr Ado-
boli told the court. “And
I’ve experienced exactly the
same thing not because I’m
a rogue trader, not because
I’m a fraudster, not because
I’m a criminal but because I
was in pursuit of goals set.”
Mr Adoboli is accused of
four counts of false account-
ing and two of fraud by
abuse of position. He denies
the charges. The case con-
tinues.
Jane Croft
Minority shareholders left
in doubt over TNK­BP deal
OIL & GAS
Igor Sechin added to con-
cerns about investor rights
in Russia when the Rosneft
chief executive said the
state-controlled oil group
had no obligation to minor-
ity investors in TNK-BP.
He was speaking as Ros-
neft moved ahead with
plans to buy TNK-BP, Rus-
sia’s third-largest oil pro-
ducer, in a $55bn deal.
The deal will be a bon-
anza for TNK-BP’s owners,
BP and AAR, a group of
Soviet-born oligarchs.
Concerns have been
raised about the fate of
minority shareholders in
TNK-BP Holding, the com-
pany’s listed unit. Analysts
say how they are treated
will be a test for Russia’s
investment climate.
TNK-BP Ltd controls
95 per cent of TNK-BP Hold-
ing, while the remaining
5 per cent is freely traded.
Until this October, TNK-BP
Holding was one of Russia’s
biggest blue-chip groups.
But since the announce-
ment of the Rosneft-BP
deal, the share price has
dropped by 13 per cent, wip-
ing $5bn off its market
value, as it became clear
that there would be no buy-
out or swap of investors in
TNK-BP Holding.
Mr Sechin said the deal to
13%
Fall in TNK­BP Holding share
price since deal announced
buy TNK-BP “is being car-
ried out on market terms
taking into consideration
all laws and legal norms.
Rosneft has no obligations
to TNK-BP’s minority
shareholders”.
He added: “If they want
to make proposals, let them
– we will discuss them.”
Guy Chazan and
Courtney Weaver
Total bounces back as
ref ining boosts prof its
OIL & GAS
Total, the oil producer,
posted a 20 per cent
increase in quarterly profit,
on the back of an improved
performance in refining.
Stronger refining margins
also helped rival BP, which
unveiled higher than
expected profits yesterday.
Total beat analysts’ expec-
tations with adjusted net
income of €3.3bn ($4.3bn),
compared with €2.8bn in the
same quarter last year. Sales
of €49.9bn marked an 8 per
cent increase on a year ago.
The result came despite
production problems in
Nigeria and the North Sea,
where Total’s Elgin-
Franklin field has been out
of action since a gas leak
was detected there last
March. Total said its oil and
gas production stood at
2.27m barrels a day, down 2
per cent compared with last
year as the outages offset
growth from new projects.
Christophe de Margerie,
chief executive, said the
result reflected “good per-
formance across all seg-
ments”. The results show
Total recovering from the
lows of last year, when its
output was badly affected
by the civil war in Libya.
Colin Smith of VTB Capital
said Total had painted “a
convincing story of near-
term production improve-
ment, enhanced exposure to
exploration and a more
aggressively managed busi-
ness”.
Total announced in Sep-
tember that it would sell
between $15bn and $20bn of
assets over the next three
years, in a bid to improve
profitability. In October, it
announced plans to sell
Total Infrastructures Gaz
France or TIGF, its French
natural gas pipeline net-
work and gas storage busi-
ness – part of a strategy of
divesting non-core assets.
Guy Chazan
FINANCIAL TIMES THURSDAY NOVEMBER 1 2012 ★ 17

COMPANIES

Disney grabs a galaxy of opportunity Fans howl in

cyberspace
Perhaps aware that his
decision to retire would
cause an unprecedented

News analysis A force to be reckoned with disturbance in the Force –

The studio’s purchase of
the Star Wars franchise
includes a ‘virtual universe’
of intellectual property’,
says Matthew Garrahan
In a video message posted online
shortly after Walt Disney announced
its $4bn purchase of Lucasfilm, Bob
Iger, Disney’s chief executive, told
viewers what the media group was
getting for its money. “Seventeen
thousand characters that inhabit sev-
eral thousand planets spanning 20,000
years,” he said. Disney had not just
bought the company behind Star
Wars, one of the most lucrative film
series ever released: it had also
acquired a virtual “universe” of intel-
lectual property.
Luke Skywalker and Han Solo are
heading to the home of Mickey Mouse
and The Avengers in a tie-up that
strengthens Disney’s vast portfolio of
intellectual property. The group
already owns Pixar, the animation
powerhouse behind movies such as
Toy Story, Up and The Incredibles.
Disney bought it for $7.4bn in 2006;
three years later Marvel’s rich library
of comic characters – including Spi-
der-Man, Thor and The Incredible
Hulk – was brought into the fold in a
$4bn deal
And now Mr Iger has added Star
Wars to the mix. “It’s strategically
brilliant,” says Richard Greenfield, an
analyst with BTIG Research. “Disney
is cornering the market on intellec-
tual property that can be leveraged
across movies, television, consumer
products, theme parks and video
games. Wall-E, meet R2-D2.”
The worldwide success this year of
The Avengers may have given Mr Iger
the impetus he needed to finish talks
that began 18 months ago with George
Lucas, the founder of Lucasfilm, and
seal the deal.
The Avengers, which has grossed
$1.51bn worldwide, underscored the
value of Disney’s Marvel purchase – a
deal in which, back in 2009, some ana-
lysts criticised Disney for overpaying.
Doubts were dispelled when the film
was released this summer, quickly
becoming the second-highest grossing
movie ever released, thanks to a vast
existing audience of superhero aficio-
nados.
Lucasfilm brings with it a similarly
sized audience of passionate fans who
are likely to turn out in droves to see
the seventh film in the Star Wars
series, which Disney said this week it
would release in 2015. A new trilogy
will follow and possibly more movies
after that: the ready-made audience
ensures that, with care, Star Wars
should be a cash-cow for years to
come.
If there is a message in the acquisi-
tion – or in any of the three multibil-
lion-dollar studio deals completed by
Mr Iger since becoming chief execu-
tive – it is that he wants to minimise
the risks associated with filmmaking,
which is a notoriously expensive,
risky business. The $7.4bn purchase of
Pixar secured a library of intellectual
property: films such as Toy Story that
could yield toys and action figures,
and also sequels. The third film in the
Toy Story series, released after Pixar
had been acquired by Disney, became
the highest-grossing animated film
ever released, generating $1.06bn,
according to Internet Movie Database.
The purchase of Marvel also came
after Marvel had proved its mettle at
the box office, scoring with Iron Man
and winning plaudits for its ability to
deliver action-packed crowd-pleasers
at an affordable price. The Avengers,
produced by Marvel after the Disney
acquisition, is spawning sequels: a
second and third film are in the works
while other sequels are also in the
pipeline for Thor and Captain Amer-
ica. In each case, the audience is in
place, propelling further sales of toys
and other consumer products.
Marvel characters have “flourished”
within Disney, wrote Anthony DiCle-
mente, an analyst with Barclays, in a
research note. The hope is that Star
Wars will also benefit from Disney’s
Recent acquisitions
under chief executive Bob Iger
Club
Penguin
$7.4bn $0.7bn
Jan2006 Aug 2007
Star Wars films
Worldwide gross box-office
revenues (not adjusted
for inflation)
$775m
$538m
$475m
Star Wars: A New Hope The Empire Strikes Back Return of the Jedi
1977 1980
Sources: Dealogic; company; Box Office Mojo
A new trilogy will vast global marketing and licensing
network. But there are risks: Mr
follow and possibly Lucas, the brains behind Star Wars,
will not direct the next films, instead
more movies after serving as a “creative consultant”,
that: the ready-made and while the first three films in the
series were critical hits, the second
audience ensures set of three received a decidedly luke-
that, with care, Star warm response.
“Near-term financial returns will be
Wars should be a difficult to justify,” wrote Mr DiCle-
cash-cow for years mente. But Bob Iger and Disney are
playing a longer game. As with Mar-
to come vel and Pixar, “long-term strategic
benefits will crystallise over time”, he
said.
The commercial success of the Star
Wars film means the series has few
equals in Hollywood: only the eight
Harry Potter films have earned more.
The man responsible for shepherding
the new Star Wars films from screen-
play to screen is Alan Horn, the chair-
man of Walt Disney Studio: he was,
until fairly recently, president and
chief operating officer of Warner
Brothers, where he oversaw the Harry
Potter films. “First Iger snags Alan
Horn this year, a master of the fran-
Playdom
$4.2bn $0.8bn $4.1bn
Aug 2009 Jul 2010 Oct 2010
$1,027m
$649m
The Phantom Menace Attack of the Clones
1983 1999 2002
Photos: LUCASFILM; Allstar; Reuters; AP
chise film . . . now he brings him one cent of the company – and pay Mr
of the most powerful movie franchises Lucas about $2bn in cash, making
to exploit,” said Mr Greenfield. him the second-largest individual Dis-
The $4bn deal agreed by Disney and ney shareholder behind the holding
George Lucas, the Star Wars creator – held by the family of the late Steve
and the owner of Lucasfilm – was Jobs – and ahead of Isaac “Ike” Perl-
financed with cash and shares: Disney mutter, the chairman of Marvel Enter-
will issue 40m new shares – 2.2 per tainment, who has 25m shares.
Like the Marvel deal, the Lucasfilm
acquisition was spurred by the pros-
pect of consumer products sales.
While the Marvel purchase was even-
tually considered a strategic and
financial success the integration of its
consumer products business with Dis-
ney’s was not without problems: sev-
eral key staff left and a human
resources complaint was made against
Mr Perlmutter by a female Disney
executive.
Yet the underlying intellectual
property of Marvel and Pixar is pow-
ering Disney’s bottom line, alongside
contributions from its other busi-
nesses, such as the ESPN sports cable
channel or the ABC-TV network. Mr
Iger will hope the stories and charac-
Empire builder: George Lucas will serve ters of the Star Wars universe deliver
as creative consultant on the new films a similar result.
and howls of anguish in
cyberspace – George
Lucas was at pains to
Revenue by segment reassure Star Wars fans
Nine months, Oct 2011 to Jun 2012 that the series he created
($bn) was in good hands, after
Parks and
announcing the $4bn sale
of his company to Walt
resorts
Disney.
“When I first made Star
9.5 Wars everybody said this
was a movie Disney
14.6 should have made,” he
said in a video interview.
He is handing over the
4.4 reins of Lucasfilm to
Media 2.4 Studio Kathleen Kennedy, who
networks enterainment produced films ranging
(cable & (films & from Schindler’s List to
broadcast) television) the Indiana Jones movies:
she will replace him as
Interactive 0.6 Consumer chairman following the
products acquisition by Disney and
will turn the stories and
characters he created into
new films.
Mr Lucas revealed he
had written treatments for
the next three films. “We
have hundreds of books
and comics . . . everything
you could possibly
imagine,” he said.
He will remain a
“creative consultant” at
Disney but will no longer
be involved in the day to
day business of
filmmaking.
“It’s important that he
continues to be a little
guardian angel on my
shoulder,” said Ms
Kennedy. “My Yoda has to
be there.”
This may assure some
fans but older, diehard
Star Wars obsessives may
need more convincing,
judging by the chatter on
social media sites. “The
$849m complaints are coming
from a relatively small
audience that falls
outside the target
demographic,” said Jeff
Gomez, chief executive of
Starlight Runner
Entertainment.
A generation of young
people has grown up
with Star Wars cartoons
and toys, he added.
“Disney has to be
aware that the target
audience for the [new]
Revenge of the Sith films isn’t going to be
2005 40-year-old men who grew
up with the first trilogy,
but kids who have grown
up with the Clone Wars
cartoon and Lego Star
Wars. Think about the fact
that the generation that
was raised on Star Wars
enjoyed the first films
between the late 1970s
and the late 1980s . . . that’s
a lost generation that
FT graphic
needs a way back into
Star Wars.”
ON FT.COM
For further news
and in-depth
analysis of the film
industry go to
www.ft.com/ Diehard Star Wars fans
media may need convincing

Contracts & Tenders Legal Notices

Panasonic faces second year of losses

ELECTRONIC EQUIPMENT
By Jonathan Soble in Tokyo
Panasonic has warned it
will suffer a loss of nearly
$10bn for the second consec-
utive year, discarding an
earlier prediction that it
would return to profit, in a
move that underscores the
deep and persistent prob-
lems facing Japan’s con-
sumer electronics sector.
The Osaka-based com-
pany yesterday said it
expected to end the finan-
cial year to next March
with a net loss of Y765bn
($9.6bn), a dramatic reversal
of its previous forecast for a
Y50bn profit. It said it
would not pay a dividend
this year for the first time
since 1950.
A loss of that scale would
be only slightly smaller
than Panasonic’s record
Y772bn deficit last year, and
would bring its cumulative
losses for the past five
years to almost Y2tn.
The company said it was
writing down the value of
past investments in solar
panels, lithium-ion batteries
and mobile phones, areas
on which it had bet heavily,
only to be undone by
cheaper or more innovative
foreign competitors.
The decision broadens a
restructuring that began
with the company’s unprof-
itable television division
last year. Panasonic is also
taking a large tax charge, of
Y412.5bn, related to its pro-
longed earnings slump.
Not all of its reversal
came from one-time write-
offs, however: it cut its
annual sales forecast by 10
per cent, to Y7.3tn, and its
projection for operating
profit – earnings before
restructuring charges, taxes
and other items – by nearly
half to Y140bn, citing weak-
ening global demand for
consumer electronics.
The company said it was
writing down the value of
goodwill and other intangi-
ble assets related to the
solar, battery and phone
businesses by a total of
Y355.5bn. “In solar and con-
sumer lithium-ion batteries,
we are revising our sales
and investment strategy in
light of continuous price
falls,” it said.
In mobile phones, it
acknowledged that its
“domestic share is falling
and we are rethinking our
foreign expansion.”
Panasonic made a last-
ditch effort to compete in
smartphones with the likes
Panasonic: forecast a profit,
but instead faces a big loss
of Apple and Samsung this
year by resuming sales of
the devices in Europe, a
market it had previously
abandoned. But the move
has not borne fruit and the
company said it was with-
drawing from the market
for good.
The tax charge was forced
on Panasonic by accounting
rules governing the treat-
ment of so-called deferred
tax assets – credits that are
accumulated during loss-
making years and redeemed
when a company returns to
profit. If losses persist for Businesses
too many years, account-
ants deem the company’s
for sale
prospects for redeeming
them to have receded, and
their value is written off.
Other Japanese consumer
electronics groups are also
struggling to compete as
products such as flatscreen
TVs have plunged in price. Notice to advertisers
Sony and Sharp, which Calls to the Financial Times advertising department may be monitored. FT BUSINESS
like Panasonic suffered Acceptance of any advertisement for publication will be subject to the then current .........................................................
heavy losses last year, may terms and conditions of insertion of advertisements in FT publications. A copy of the Classified Business Advertising
UK: +44 20 7873 4909
also be forced to revise terms and conditions of insertion of advertisements in FT publications can be
Email: ruth.duffy@ft.com
their forecasts when they obtained from +44 (0)20 7873 3000, or viewed at www.FT.com/advertising
report their earnings today.
18
Doubt cast
on future
China bank
prof its
BANKS
Stellar third quarter
beats expectations
But slower economy
may end good run
By Simon Rabinovitch
in Beijing
Chinese banks made hand-
some profits in the third
quarter, but analysts said
their stellar performance
might not last as a strug-
gling corporate sector
begins to weigh on them.
For the time being,
though, the banks shrugged
off these fears. Over the
past week the country’s big-
gest lenders reported that
their net profits increased
10-20 per cent in the third
quarter from a year earlier,
topping most expectations.
Their credit quality, long a
concern, remained very
10%­20%
Chinese banks’ rise in
profits in third quarter
healthy according to their
earnings statements.
Their hefty profits came
at the same time as growth
in China slouched to 7.4 per
cent year on year in the
third quarter, putting the
economy on track for its
weakest year in more than
a decade.
“The divergence between
banks and the real economy
looks too good to be sus-
tainable,” said Stanley Li,
an analyst with Mirae Asset
Securities.
Two main factors
explained the better than
expected performance from
China’s banks. First, inves-
tors have worried about bad
debts after China’s post-2008
Property loan writedowns dent BBVA f igures
BANKS
By Tobias Buck in Madrid
Banco Bilbao Vizcaya
Argentaria, Spain’s second-
largest bank by market
value, posted a sharp fall in
third-quarter profits after it
was forced to make more
than €2bn in fresh write-
downs to cover souring
property loans.
The bank’s third quarter
net income fell by 82 per
cent to €146m, reflecting
the continuing crisis in the
Spanish economy, which is
PVH reunites Calvin Klein
brands with Warnaco deal
GENERAL RETAILERS
By David Gelles
in New York
Clothing company PVH said
it would pay about $2.9bn in
cash and stock for the War-
naco Group, reuniting all
Calvin Klein brands under
one corporate parent.
PVH, based in New York,
owns clothing brands
including Calvin Klein,
Tommy Hilfiger and Van
Heusen. Warnaco, also
based in New York, holds
Speedo and Chaps, among
others, but also the licence
to manufacture and sell
Calvin Klein branded jeans
and underwear.
Warnaco shareholders
will receive $51.75 and
0.1822 of a share in PVH
common stock for each of
their shares. That amounts
to $68.43 per share, a 34 per
cent premium over War-
naco’s last closing price.
The deal was supposed to
have been unveiled on
Tuesday morning, but the
companies pushed back the
announcement because of
hurricane Sandy. Execu-
tives, directors and advisers
worked through the storm
stimulus spending spree,
but once again there were
no visible signs of a deterio-
ration in asset quality. The
country’s four biggest
banks – Industrial and Com-
mercial Bank of China,
China Construction Bank,
Agricultural Bank of China
and Bank of China – all
reported lower non-perform-
ing loan ratios than three
months earlier.
Second, analysts had
thought that a move to let
banks compete more on
deposit rates would cut into
their net interest margins,
which account for about
two-thirds of their profits,
but that effect failed to
materialise. Instead, all big
banks reported that their
interest income was up 2-5
per cent from the second
quarter.
Both these trends could
soon turn against banks.
Banks’ minuscule bad
debt levels, which average
just about 1 per cent of
their overall assets – lower
than those at European and
US rivals – have resulted in
part from loans being rolled
over or moved off their bal-
ance sheets. A slowing
economy is expected to lead
them to recognise more
non-performing loans.
Investors have piled back
into Chinese bank shares in
the Hong Kong market,
triggering a rally of more
than 20 per cent in the
index of Chinese bank
shares in Hong Kong since
mid-September.
From a longer-term per-
spective, Chinese banks
could be at a crucial turn-
ing point. They have faced
criticism for making big
profits because of a stran-
glehold on financing chan-
nels. Acknowledging this,
Wen Jiabao, the premier,
said in April “our banks
make profits far too easily”.
mired in recession and suf-
fering from the collapse of
the once-booming housing
market.
The crisis has forced
Spanish banks, including
stronger lenders such as
BBVA and Banco
Santander, to realise heavy
losses on their loan portfo-
lio and property assets.
BBVA’s foreign subsidiar-
ies performed strongly in
comparison to Santander,
which last week reported a
94 per cent drop in third
quarter net profits and saw
a slowdown in some of its
to get the deal done, hold-
ing board meetings even as
the hurricane came ashore.
Investors rewarded PVH
for the deal, sending shares
up 19 per cent in early trad-
ing yesterday, the first day
of the week that markets
have been open in New
York because of the storm.
“Over the past year or
more we have offered our
support for this combina-
‘There have been
discussions for
eight years . . . with
public companies,
stars had to align’
tion to both PVH and War-
naco, as we believe this is
smart for both companies
and very positive for their
shareholders,” said Lauren
Taylor Wolfe, a managing
director of Blue Harbour
Group, which owns more
than 3 per cent of Warnaco.
The deal is the third large
acquisition orchestrated by
PVH chief executive
Emanuel Chirico. As chief
financial officer of PVH he
Driving force: solid earnings for GM in North America will offset losses of up to $1.8bn this year in Europe
GM sees green shoots in Europe
CARS
By John Reed in London
General Motors said it
would begin narrowing
losses at its ailing Opel/
Vauxhall business by next
year and break even in
Europe by the middle of the
decade.
This came as GM yester-
day reported lower third-
quarter net income of
$1.5bn, weighed down by
the industry crisis in
Europe, where the US car-
maker says it will lose
$1.5bn to $1.8bn this year,
but lifted by solid earnings
in North America.
“Despite the terrible eco-
nomic environment in
Europe, we’re not sitting
still, and in fact there are
some green shoots sprout-
ing at Opel in the mud,”
said Steve Girsky, Opel’s
international divisions.
Net profits in Mexico,
where BBVA owns the mar-
ket-leading banking fran-
chise, rose 12 per cent to
€435m
“Outside Spain, BBVA’s
Mexico presence looks more
attractive right now versus
Santander’s Brazil expo-
sure,” said Ronit Ghose, an
analyst at Citigroup.
“The core franchise in
Spain is obviously going
through a phase of consoli-
dation and restructuring,
but what differentiates
BBVA is the presence in
helped the company buy
Calvin Klein in 2002. Then
as chief executive he
acquired Tommy Hilfiger
for about $3bn.
The enlarged PVH will
have more than $8bn in pro
forma revenue, making it
one of the largest casual-
clothing companies in the
world. Helen McCluskey,
Warnaco’s chief executive,
will join the PVH board.
PVH said it expects to
achieve $100m in annual
synergies from the deal,
which will be realised over
three years. It expects one-
time costs of about $175m
during this time as it unites
the two companies.
The deal was years in the
making, but Mr Chirico and
Ms McClusky’s talks began
in earnest in June. “There
have been discussions for
eight years,” Mr Chirico
said, adding PVH had paid
down $1bn in debt in the
past year, aiding the deal.
“With two public companies
the stars had to align.”
Peter J Solomon Com-
pany advised PVH. JPMor-
gan advised Warnaco. Bar-
clays, BofA Merrill Lynch
and Citigroup will provide
financing for the deal.
★ FINANCIAL TIMES THURSDAY NOVEMBER 1 2012
COMPANIES
chairman, as he outlined a
“path to profitability” for
GM’s struggling European
business.
GM plans to launch 23
new models and 13 engines
in Europe by 2016 and cut
fixed costs by $300m this
year, and another $500m
between 2013 and 2015.
Mr Girsky, who is also
GM’s vice-chairman, said
that the carmaker had cut
its headcount by 2,300 in
Europe this year, out of a
total of 2,600 staff due to go
in 2012, mostly from volun-
tary redundancies and early
retirements.
GM’s announcements on
Opel follow strategic rea-
lignments in Europe
revealed over the past week
by its competitors Ford
Motor and Fiat in response
to the eurozone debt crisis,
which has driven car sales
and prices into a sustained
Mexico and South America,
which are long-term growth
hopes and performing well.”
The group’s net interest
income, a measure of the
income generated by a
bank’s core lending activi-
ties, rose 18 per cent to
€3.88bn in the third quarter.
BBVA said it had booked
a loss of €2.04bn as part of
an effort to clean up its
loan and real estate portfo-
lio. The latest provisions
took the total for the year
until September to €5.31bn.
The bank said it had
booked two-thirds of the
UBS restructuring claims
scalp of f ixed income head
BANKS
By Daniel Schäfer in London
The radical restructuring at
UBS claimed its most senior
scalp yesterday, as the bank
pushed ahead with a cull
of 10,000 employees that
is sending shockwaves
through the investment
banking community.
Roberto Hoornweg, who
co-heads the fixed income
division, is poised to leave
after almost three years at
the bank, two people close
to the situation said. His
unit will bear the brunt of
the cut backs.
The Swiss bank is
expected to promote Rajeev
Misra from co-head to sole
head of the fixed income
trading business, most of
which will be brought into
a non-core unit that will be
wound down over the next
three years.
Mr Hoornweg, who joined
UBS in January 2010 after a
17 year career at Morgan
Stanley, could not be
reached for comment. UBS
also declined to comment.
This week, the Switzer-
land-based investment bank
unveiled a sweeping over-
decline and most manufac-
turers into deep financial
losses.
“We expect the weakness
in Europe to impact our
business for the next sev-
eral years, so we are being
conservative in our plan-
ning assumptions,” said
Dan Akerson, GM’s chief
executive.
Unlike Ford, which
announced last week that it
was closing three plants to
cut its European capacity
by a fifth, GM’s hands are
tied by agreements with
workers from an earlier
restructuring not to close
any plants before 2016.
The Detroit carmaker is
locked in talks with unions
about plans to close its
plant in Bochum, Germany,
to which it has not allo-
cated any new vehicles
after 2016. Mr Girsky said
GM’s capacity utilisation in
real estate losses for the
year, but would have to
make at least another
€1.57bn in provisions before
the end of the year.
Non-performing loans
accounted for 4.8 per cent of
the bank’s total loan book
in September, up from 4 per
cent in June.
BBVA’s bad loan ratio
compares favourably with
the average across the
Spanish banking sector,
which is more than twice as
high.
Spain’s housing bust and
the broader economic crisis
haul of its investment bank,
which will be pruned into a
much smaller unit that will
support its core wealth
management business.
Yesterday, the bank,
which is shedding 10,000
positions globally over
three years, embarked on
job cuts in Asia. About 30
fixed income traders and
sales people in Tokyo were
put on leave, two people
close to the situation said.
More details emerged on
the fate of about 100 Lon-
don staff who arrived at
work early on Tuesday to
find they could no longer
enter the building using
their security passes.
They were escorted to a
special room by a human
resources representative
who gave them a letter say-
The investment bank is
cutting 10,000 jobs globally
Getty
Europe was “targeted to
improve”. Under its alliance
with French producer PSA
Peugeot Citroën, it is also
targeting savings on materi-
als and logistics.
The company’s overall
net income of $1.5bn, or 89
cents a share, beat average
forecasts of analysts polled
by Thomson Reuters of 60
cents a share. It compared
with net income of $1.7bn
or $1.03 a share reported in
the second quarter of 2011.
GM’s share price surged
9 per cent by midday yester-
day as traders took stock
of its earnings after the
shutdown caused by the
superstorm Sandy. Its loss
before interest, taxation
and amortisation in Europe
for the third quarter was
$478m, compared with
$292m a year ago.
See Lex
have exposed a sharp divi-
sion between the country’s
weaker lenders and
stronger groups such as
Santander and BBVA.
According to a report
published last month by
consultancy Oliver Wyman,
neither of the two leading
banks will need fresh capi-
tal to cover for losses on
their loan and property
portfolios. Across the sector
the study found a capital
shortfall of almost €60bn.
Shares in BBVA closed up
2.85 per cent at €8.29 in
Madrid.
ing they were no longer
allowed to go to their
offices and were on special
leave “until further notice”.
London is expected to
bear the brunt of the job
cuts, with more than 3,000
of the current 6,613 jobs at
the bank’s City offices
under threat.
Richard Luddington, vice-
chairman of global capital
markets, was also put on
leave. He was mainly
focused on the bank’s sover-
eign and superagency busi-
ness, which will be closed.
The sale of debt and
bonds on behalf of states
and public organisations
has been rendered uneco-
nomic under regulations
that require banks to hold
much more capital against
a business that earns tiny
fees, according to bankers.
It is expected to be the
only major cut at the
bank’s debt and equity capi-
tal markets business, to
which the bank is “unques-
tionably and unambigu-
ously committed”, accord-
ing to one insider.
Additional reporting by
Ben McLannahan in Tokyo
See Comment
Regulator
clamps down
on electricity
manipulation
ELECTRICITY
News analysis
US is taking a more
aggressive approach
towards trading in
its power markets,
writes Javier Blas
In the early 2000s, the US
electricity sector was seen
as the wild west of the com-
modities markets. It
lurched from crisis to crisis
and was notorious for spik-
ing prices. Not any longer.
The revelation that Bar-
clays is about to be fined in
the US for allegedly inap-
propriate trading in power
markets highlights the
tougher approach being
taken by US regulators a
decade after the collapse of
energy trader Enron.
Wholesale electricity has
faced tougher scrutiny by
Washington since the Cali-
fornian energy crisis of
2000-01, when Enron and
other traders were accused
of rigging supplies and
causing huge blackouts.
Regulatory attention has
risen even further over the
past 18 months as the US
Federal Energy Regulatory
Commission, the watchdog,
has flexed its muscles by
launching a series of crack-
downs.
The tougher stance comes
as support is growing for
stricter oversight of com-
modities markets from US
lawmakers, prompted by
large price swings over the
past five years and follow-
ing the 2008-09 global finan-
cial crisis.
The London-based bank is
not alone. JPMorgan, Con-
stellation Energy and Deut-
sche Bank are among the
companies that have been
caught in the tighter regu-
latory net of the US electric-
ity market over the past
year and a half.
Nor is FERC alone in
adopting a more aggressive
attitude. The US Commod-
ity Futures Trading Com-
mission, which polices the
commodities derivatives
market, has stepped up its
oversight and launched a
nationwide investigation
into the oil markets in 2007.
Moreover, energy and
commodities lawyers say
that FERC and the CFTC
have increased information
sharing, allowing them to
pursue related cases from
different angles. The Fed-
eral Trade Commission, the
agency that promotes com-
petition in the US economy,
has also stepped up its
efforts in antitrust cases in
the energy market.
In the clearest example of
the new approach, FERC
agreed this year to a record
$245m settlement with Con-
stellation Energy for
alleged manipulation of the
country’s power markets.
The settlement contrasts
with fines totalling just
$127m in aggregate in the
previous five years, in spite
of new rules introduced in
2005 that gave the Washing-
ton-based regulatory body
the power to impose penal-
ties of up to $1m a day on
companies found to have
manipulated US energy
markets.
“Understand that the
[Federal Energy Regula-
tory] Commission will be
vigorous in using its anti-
manipulation authority to
More news at FT.com
●Barclays chief looks
ahead to smoother times
Antony Jenkins tried not to
dwell on the past as he
presented his first set of
results as chief executive of
Barclays yesterday. But the
man brought in to restore
the UK bank’s battered
reputation in the wake of
the Libor scandal, which
cost his predecessor his job
in July, could not entirely
escape the questions that
keep haunting the company.
He also faced a grilling
about the disclosure that
Barclays is facing another
fine in the US, this time
over its conduct in electricity
trading. In addition, the bank
disclosed that it is under
investigation by the US
Department of Justice and
the US Securities and
Exchange Commission over
whether it breached anti­
protect consumers,” Jon
Wellinghoff, FERC chair-
man, said after the regula-
tor unveiled the fine on
Constellation.
In addition to tougher
financial penalties, FERC
has increased its market
surveillance. Earlier this
year it opened a new divi-
sion dedicated to monitor-
ing the multibillion-dollar
markets for electricity and
natural gas in the US.
Carlos Blanco, an expert
on US energy regulation at
the Oxford Princeton Pro-
gramme, said in a recent
article that the creation of
the new market surveil-
lance division and the
record fine to Constellation
Energy suggested partici-
pants in the US electricity
and natural gas markets
were facing a “new world”.
“FERC is strengthening
its monitoring efforts and
pursuing more aggressively
any perceived wrongdoing
by gas and power market
participants,” he wrote.
The more aggressive
approach has resulted in 11
probes into potential manip-
ulation of the country’s
power market since Janu-
ary 2011, including around
the activities of JPMorgan,
Barclays and Deutsche
Bank.
In December, FERC said
Deutsche Bank’s energy
trading business might
have engaged in manipula-
tion of the California power
market between January
2010 and March 2010. FERC
has also subpoenaed JPMor-
gan Chase twice this year
as it investigates whether
the bank manipulated
power markets in Califor-
nia.
The investigation into
Barclays and four former
traders forms part of the
The tougher stance
comes as support
is growing for
stricter oversight of
commodities
crackdown. The regulator
has in the past alleged the
bank and the traders
bought and sold electricity
in enough volume to move
exchange prices up or down
to benefit parallel positions
in the derivatives market.
The bank yesterday said
FERC was investigating its
“power trading in the west-
ern US with respect to the
period from late 2006
through 2008”, warning that
it could be fined. People
familiar with the situation
said the proposed fine was
likely to be “high”. The
bank, in a statement, said it
intended to “vigorously
defend” its trading activi-
ties in the US market, open-
ing the door to a protracted
lawsuit. A FERC spokes-
man declined to comment,
saying the commission has
not issued an order in the
case.
Other regulators have
also brought significant
cases outside electricity. In
a notorious case, the CFTC
last year charged Parnon
Energy, a US oil trader,
together with its Swiss and
UK affiliates Arcadia, with
manipulating oil prices in
2008. Arcadia has denied
any wrongdoing.
Additional reporting by
Gregory Meyer in New York
corruption laws. Otherwise it
was a relatively untroubled
performance for Mr Jenkins.
Barclays had already
flagged a £700m provision
to cover the cost of
payment protection
insurance claims, which
helped push the bank into
the red in the three months
to September 30.
A £1.07bn accounting
charge related to the
fluctuating value of its
issued debt also contributed
to the quarterly pre­tax loss
of £47m, down from a profit
of £2.42bn a year earlier.
Barclays’ return on equity
on an adjusted basis edged
up slightly to 8.8 per cent
in the nine months to
September 30, up from 8.4
per cent for the same
period last year.
www.ft.com/banks
FINANCIAL TIMES THURSDAY NOVEMBER 1 2012
Telenor
shifts stance
on stake in
VimpelCom
MOBILE & TELECOMS
Group opens door to
potential $6.4bn sale
Move highlights
battle with co­owner
By Daniel Thomas,
Telecoms Correspondent
Telenor has opened the
door to a potential sale of
its $6.4bn stake in Vimpel-
Com, the world’s sixth-larg-
est telecoms group by sub-
scribers.
Jon Baksaas, chief execu-
tive of the Norwegian tele-
coms group, said it would
be “realistic” and “prag-
matic” over any offer from
Russia’s Altimo group, Vim-
pelCom’s cash-rich co-
owner. The comments, in
an interview with the FT,
will be taken by analysts as
evidence of a material shift
in Telenor’s stance on Vim-
pelCom, after Altimo took
its stake above that of the
Norwegian group this week.
Telenor and Altimo have
been engaged in a long-run-
ning battle for control,
which grew particularly
fractious after the Russian
group pushed through the
$6bn acquisition of the tele-
coms assets controlled by
Naguib Sawiris, the Egyp-
tian investor. Altimo is the
telecoms investment arm of
Russia’s Alfa Group, con-
trolled by Russian oligarch
Mikhail Fridman, which is
in line for a payout of at
least $11bn from the sale of
TNK-BP to Rosneft.
Altimo has also recently
sold its stake in Megafon
for about $5.2bn. At $11 per
Global Appointments
ordinary share, a slight pre-
mium to Tuesday’s closing
price, Altimo could buy Tel-
enor’s stake for $6.4bn.
While both sides have
been gradually increasing
their stakes, Mr Baksaas
admitted that Altimo had
now taken the “upper
hand” in the corporate
structure, having added an
additional 6 per cent of
common stock to its 42 per
cent voting stake. This now
exceeds Telenor’s 43 per
cent voting rights.
In response to questions
about whether Telenor
could sell its stake in the
telecoms group, Mr Baksaas
said: “It depends on what
has been put on the table.
We should be pragmatic.
We are realistic to the
extent that others have a
strong appetite.”
He said there had been no
talks with Altimo, but
pointed out the group had
always pursued an “asset
play” strategy. “I guess
there are strategies for the
next move,” he said. “You
can’t look at it as one holis-
tic issue but it’s such a large
amount of money [held by
Alfa]. How the proceeds
might be used in the next
round is beyond my specu-
lation.” Analysts at Beren-
berg Bank said there had
been “a material change
in stance from the company,
in what is a material change
in environment”.
Altimo, which declined to
comment on Telenor’s posi-
tion, has signalled it might
look for further open mar-
ket share purchases,
although it could be forced
into a mandatory offer if it
exceeds 50 per cent.
★ 19
COMPANIES
Italy’s best­selling daily at
centre of power struggle
MEDIA family €3.00 a share, more
than double the market
tions. This is now the case
again with a national ballot
News analysis price, for its 5.1 per cent due next spring.
stake, which is not part of Adding to the speculation
The publisher of the shareholders’ pact that is the company’s need to
Corriere della Sera is locked up until 2014.
While the offer has so far
raise capital to cover recent
losses, including a €427m
is likely to need
been rebuffed, Alessandro deficit in the first half.
fresh capital, writes Proto, the 38-year-old head
of the investor, says he
While RCS has not com-
mented, several large share-
Eric Sylvers remains committed to build- holders have said they
ing the stake in RCS. expect a capital increase,
In Milan’s chummy finan- “I expect the sharehold- which the Italian media has
cial world, outsiders are ers’ pact will slowly fall estimated will be for about
often given the cold shoul- apart as we get closer to the €400m-€800m.
der. So one of the quickest expiration date, thus As well as Corriere, RCS
ways to be heard is to increasing the free float and owns Italy’s biggest sports
invest in Italy’s best-selling allowing us a chance to daily, La Gazzetta dello
newspaper, which is again raise our stake,” Mr Proto Sport, more than two dozen
at the centre of a power says. “The ultimate goal is magazines and several
struggle with large share- to take over control of RCS domestic and foreign pub-
holders feuding and a new and Corriere.” lishing companies. It has a
investor building a stake. Italy’s stock market regu- relatively modest market
Talk of who is calling the lator has opened an investi- value of €1.1bn, which has
shots at Corriere della Sera gation into Proto’s move on doubled since August on
is a frequent obsession of RCS, according to a person the rumours of a potential
Milan’s financial elite, close to the matter. Mr takeover battle. Yet it is
Rome’s politicians and the Proto says he has not been afforded exaggerated levels
national media. informed and that, if true, of attention because Corri-
RCS MediaGroup, the ere is read by the movers
publishing company that and shakers of Italy, giving
owns the influential daily, ‘The ultimate goal it influence far beyond the
has only about 5 per cent of is to take over 455,000 copies sold daily and
its shares trading regularly the 2.1m people who visit
on the Milan Stock control of RCS the website on weekdays.
Exchange – making it
almost impossible to build a
and Corriere’ While members of the
RCS shareholders’ pact con-
stake. Yet the release of Alessandro Proto, tend they have no control
quarterly results on Novem- Proto Organization over editorial content at
ber 12 is likely to show ris- Corriere, in Italy it is an
ing losses and a need for the probe would show the open secret that with mem-
fresh capital, making a sig- perils of investing in RCS. bership comes a voice in
nificant change in share- “We invested in shaping coverage. In pri-
holdings possible for the UniCredit, Fondiaria-Sai, vate, the newspaper’s jour-
first time in a decade. Generali, Mediaset and Fiat, nalists recount how those
With 58 per cent of RCS and nobody even noticed, who write stories critical of
owned by a shareholders’ but as soon as we started to RCS shareholders are mar-
pact that is a Who’s Who of touch RCS the problems ginalised by editors until
Italian business and began,” he says. they begin to self-censor.
finance, led by Mediobanca, Mr Proto is the latest out- On top of the 58 per cent
the Milanese investment sider to try to exploit the controlled under the share-
bank, any move to muscle often public disputes within holders’ pact, some 35 per
in on the newspaper has in the controlling pact. As cent of RCS is held by long-
the past been quashed. well as Mediobanca, its term investors including
That has not kept pre- members include Intesa Diego Della Valle, chairman
tenders from trying, most Sanpaolo, Italy’s largest and chief executive of the
recently Proto Organiza- bank by market value; Gen- shoemaker Tod’s, who owns
tion, an investment and erali, the biggest insurer by 8.7 per cent and left the
advisory boutique that premiums; Unipol, the pact this year after a gov-
acquired 3.4 per cent of RCS second-biggest insurer; Fiat, ernance dispute with Fiat
on behalf of five foreign cli- the biggest manufacturer and Mediobanca. Another
ents, including Kushal Pal by revenue; and Pirelli, the investor outside the pact is
Singh, the Indian property tyremaker. Giuseppe Rotelli, an entre-
billionaire. The tussles for RCS tend preneur and vice-chairman
To increase this stake, to become particularly of RCS, who owns 13 per
Well read: Corriere della Sera’s influence extends far beyond its 455,000 circulation Alamy Proto offered the Benetton heated in the run-up to elec- cent of the company.
Positions Available
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20 ★ FINANCIAL TIMES THURSDAY NOVEMBER 1 2012
FINANCIAL TIMES THURSDAY NOVEMBER 1 2012 ★ 21

MARKETS | MANAGED FUNDS SERVICE Full fund performance data at

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22 ★ FINANCIAL TIMES THURSDAY NOVEMBER 1 2012

Full fund performance data at

www.ft.com/funds MANAGED FUNDS SERVICE
Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield

Quant Global Equity Fund £ 1.68 1.68 0.00 0.00 Enhanced Nat Resources A Acc USD $ 19.46 - 0.14 - JF Korea Eq A (dist)-USD (1) F $ 10.16 - 0.13 - JPM Africa Eq A (dist)-GBP (1) F £ 7.36 - 0.01 - Strategic Bond A Inc £ 1.16 - 0.00 2.70 UK Growth 1208.46 1258.81 -0.19 1.80
Morant Wright Management Ltd (CYM)
Sourcecap European Alpha Fund F £ 1.28 1.28 0.00 0.00 Euro Money A Acc EUR € 69.03 - 0.00 0.00 JF Singapore A (acc)-SGD (1) F S$ 16.18 - -0.05 - JPM Africa Eq A (inc)-EUR (1) F € 71.36 - -0.06 - UK Equity Absolute Return A Acc £ 1.08 - 0.00 - UK Select Fund 939.84 979.00 2.93 1.69 Regulated
Sourcecap Europe Ex-UK Cls Z GBP Acc £ 1.22 1.22 0.01 - Euro Money A Inc EUR € 26.11 - 0.00 0.00 JF Japan Eq A (acc)-EUR (1) F € 4.52 - -0.05 - Bonds Broad Market UK Equity A Acc £ 1.76 - 0.01 1.66 Other International Funds MW Japan Fd Ltd A $ 17.17 - -0.25 0.00
UK Smaller Companies Fund £ 1.91 1.91 0.00 0.00 Global Bond A Acc USD $ 100.90 - 0.15 1.04 JF Japan Eq A (dist)-GBP (1) F £ 5.58 - -0.05 - JPM Agg Bd A (acc)-USD (1) F $ 12.01 - 0.00 - UK Equity Income A Acc £ 1.50 - 0.00 4.22 M&G Property Fund - Retail £ 6.37 6.71 0.00 4.20 MW Japan Fd Ltd B $ 17.57 - -0.27 0.00
UK Small and Mid Cap Companies Fund £ 2.70 2.70 0.02 0.00 Global Bond A Inc USD $ 45.98 - 0.07 1.05 JF Japan Eq A (acc)-JPY (1) ¥ 417.00 - -4.00 - JPM Em Mkt Corp Bd A (acc)-EUR Hdg (1) F € 100.36 - 0.02 - UK Equity Income A Inc £ 1.33 - 0.00 4.33 M&G Property Fund A Inc £ 6.37 6.37 0.00 4.74
Global Investment Grade Z GBP Acc £ 1.16 1.16 0.01 0.00 Global Contrarian Equity A Acc USD $ 21.66 21.66 0.15 - JF Japan Eq A (acc)-USD (1) F $ 7.00 - -0.05 - JPM Em Mkt Corp Bd A (acc)-USD (1) F $ 128.23 - 0.03 - UK Opportunities A Acc £ 1.17 - 0.00 1.13
JPM Em Mkt Debt A (acc)-USD (1) F $ 17.85 - -0.05 -
Liongate Capital Management (CYM)
Global High Yield Bond Fund Cls Z GBP Acc £ 1.21 1.21 0.00 0.00 Global Dynamic A Acc USD $ 98.02 - 0.75 - JF Japan Eq A (dist)-USD (1) $ 17.63 - -0.13 - UK Smaller Companies A Acc £ 1.69 - 0.01 0.37
www.liongate.com
Global Dynamic A Inc USD $ 97.28 - 0.74 - JF Japan Sm Cap A (acc)-USD (1) F $ 6.65 - -0.01 - JPM Euro Agg Bd A (acc)-EUR (1) F € 11.61 - 0.00 - Regulated
FOURPOINTS Investment Managers Kames Capital VCIC (IRL)
Global Energy A Acc USD $ 17.23 - 0.19 0.27 JF Japan Sm Cap A (dist)-USD (1) $ 6.33 - -0.01 - JPM Gbl Agg Bd A (acc)-USD (1) F $ 12.83 - 0.01 - Liongate Multi-Strategy Fund
Other International Funds 1 North Wall Quay, Dublin 1, Ireland +35 3162 24493
Global Energy A Inc USD $ 302.66 - 3.31 0.19 JF Pacific Eq A (acc)-EUR (1) F € 8.94 - -0.02 - JPM Gbl Agg Bd A (dist)-USD (1) $ 13.54 - 0.00 - FSA Recognised Class A1 (Est) $ 1767.95 - -1.05 -
Fourpoints Info Tech UK Dist £ 506.30 - -0.31 0.00
Global Energy Long Short A Acc USD $ 16.78 - 0.09 - JF Pacific Eq A (dist)-GBP (1) F £ 12.10 - -0.01 - JPM Gbl Conv (EUR) A (acc)-CHF Hdg (1) FSFr 21.19 - 0.00 - Absolute Return Bond B GBP Acc £ 10.35 - 0.00 - Class B1 (Est) € 1714.74 - -1.82 0.00 Morgan Stanley Investment Funds (LUX)

Impax Asset Management (IRL)

MFS Meridian Funds SICAV (LUX) 6b Route de Trèves L-2633 Senningerberg Luxembourg (352) 34 64 61
Global Equity A Acc USD $ 225.59 - 1.90 - JF Pacific Eq A (acc)-USD (1) $ 13.00 - 0.02 - JPM Gbl Conv (EUR) A (dist)-GBP Hdg (1) F £ 11.20 - 0.00 - High Yield Global Bond A GBP Inc £ 5.25 - 0.00 5.15 Class C1 (Est) £ 1789.56 - -0.62 -
Regulated www.morganstanleyinvestmentfunds.com
Norfolk House, 31 St James's Square, London, SW1Y 4JR
Global Equity A Inc USD $ 223.70 - 1.89 - JF Pacific Eq A (dist)-USD (1) $ 60.68 - 0.10 - JPM Gbl Corp Bond A (div)-EUR Hdg (1) € 78.33 - 0.15 - High Yield Global Bond B GBP Inc £ 10.91 - 0.01 5.67 Class D1 (Est) ¥ 120376.63 - -106.01 0.00 Absolute Return A1 € 17.66 - 0.00 0.00 FSA Recognised
FSA Recognised
Global Franchise A Acc USD $ 31.33 - 0.07 0.69 JF Singapore A (acc)-USD (1) F $ 27.02 - -0.04 - Bonds Extended Market Investment Grade Global Bd A GBP Inc £ 5.42 - 0.00 2.36 Class E1 (Est) SFr 1586.74 - -1.92 0.00 US Advantage A F $ 35.70 - 0.03 0.00
Env Mkts (Ire) Stl A £ 1.61 - 0.00 0.00 Asia ex-Japan A1 $ 22.79 - 0.00 0.00
Global Franchise A Inc USD $ 30.99 - 0.08 0.71 JF Singapore A (dist)-USD (1) F $ 34.34 - -0.06 - JPM EU Gov Bd A (acc)-EUR (1) F € 12.32 - 0.01 - Strategic Global Bond A GBP Inc £ 10.72 - 0.00 1.93 Class F1 (Est) SKr 969.24 - 0.51 0.00 Absolute Return Currency A F € 24.16 - -0.07 0.00
Env Mkts (Ire) Stl B £ 1.54 - 0.00 0.00 China Equity Fd A1 $ 9.10 - 0.00 0.00
Global Gold A Acc USD $ 22.82 - 0.13 - JF Taiwan A (acc)-EUR (1) F € 14.33 - 0.14 - JPM Gbl Conv (EUR) A (acc)-EUR (1) F € 11.95 - 0.00 - Strategic Global Bond B GBP Inc £ 6.08 - 0.00 2.44 Liongate Commodities Fund Asian Equity A F $ 41.35 - 0.26 0.00
Env Mkts (Ire) Euro A € 1.37 - 0.00 0.00 Continental European Eqty A1 € 11.86 - 0.00 0.00
Global Gold A Inc USD $ 82.25 - 0.49 - JF Taiwan A (acc)-USD (1) F $ 14.72 - 0.21 - JPM Gbl Conv (EUR) A (dist)-EUR (1) F € 9.92 - 0.00 - Class A (Est) $ 1097.77 - -4.44 - Asian Property A F $ 17.35 - -0.05 0.00
Env Mkts (Ire) Euro B € 1.07 - 0.00 0.00 Emer Mkts Debt Lo Curr Fd A1 $ 14.57 - 0.00 0.00
Key Asset Management
Global Natural Resources A Acc USD $ 10.30 - 0.13 - JF Taiwan A (dist) HKD (1) F HK$ 11.11 - 0.16 - JPM US Aggr Bd Aacc-EUR (hdg) (1) € 79.34 - 0.19 - Class B (Est) € 1060.81 - -4.65 0.00 Asian Property AX F £ 10.22 - -0.05 1.21
Env Mkts (Ire) USD A $ 1.35 - 0.00 0.00 Other International Funds Emerging Markets Debt A1 $ 33.29 - 0.00 0.00
Global Natural Resources A Inc USD $ 10.30 - 0.13 - JF Taiwan A (dist)-USD (1) F $ 12.51 - 0.18 - (1) JPMorgan Funds Class C (Est) £ 1023.57 - -3.97 0.00 Diversified Alpha Plus A F € 28.96 - 0.27 0.00
Env Mkts (Ire) USD B $ 1.20 - 0.00 0.00 Key Hedge (Est) $ 407.82 - -1.33 0.00 Emerging Markets Eq.A1 $ 12.68 - 0.00 0.00
(2) JPMorgan Investment Funds
Global Opp Equity A Inc USD $ 24.03 - 0.07 0.21 JPM Japan 50 Eq A (acc)-EUR (hdg) (2) F € 69.39 - -0.71 - Emerg Europ, Mid-East & Africa Eq A F € 57.72 - 0.22 0.00
Asian Env Mkts (Ire) Stl A £ 0.72 - 0.00 0.00 Key Europe Inc (Est) € 171.12 - -0.42 0.00 Lloyd George Management European Concentrated A1 € 12.58 - 0.00 0.00
Asian Env Mkts (Ire) Stl B £ 0.72 - 0.00 0.00 Global Strat Equity A Acc USD $ 15.73 - 0.13 - Equity Emerging Markets Jefferies Umbrella Fund (LUX)
Key Recovery (Est) $ 171.47 - 0.00 0.00 Other International Funds European Core Eq A1 € 20.50 - 0.00 0.00
Emerging Markets Debt A F $ 80.43 - -0.10 0.00
11 Rue Aldringen, L-1118 Luxembourg 00 352 468193626 Emerging Markets Domestic Debt AX F £ 15.83 - 0.02 4.18
Asian Env Mkts (Ire) USD A $ 0.85 - 0.00 0.00 Global Strat Equity A Inc USD $ 85.54 - 0.66 - JPM Brazil Equity A (acc)-USD (1) F $ 8.96 - 0.04 - Key Global Inc (Est) $ 567.39 - -6.07 0.00 LG Antenna Fd Ltd $ 61.75 - -0.31 0.00 European Res.A1 € 21.35 - 0.00 0.00
FSA Recognised
Global Strategic Inc A Acc USD $ 26.27 - 0.01 4.22 JPM Brazil Equity A (acc)-SGD (1) F S$ 10.47 - 0.04 - LG Asian Plus Ltd $ 56.30 - -0.30 0.00 Emerging Markets Equity A F $ 36.77 - 0.25 0.00
Europe Convertible Bd A (Dis) - D - EUR F € 11.92 - 0.01 1.51 Key Trading $ 99.44 - 0.74 0.00 European Smaller Companies A1 € 30.05 - 0.00 0.00
INDIA VALUE INVESTMENTS LIMITED (INVIL) Global Strategic Inc A Inc USD $ 21.02 - 0.01 4.26 JPM Brazil Equity A (acc)-EUR (1) F € 59.80 - 0.00 - Euro Bond A F € 13.77 - 0.00 0.00
Europe Convertible Bd B (Cap) € 13.22 - 0.02 0.00 LG Asian Smaller Cos $ 105.13 - 0.00 0.00 European Value A1 € 22.98 - 0.00 0.00
www.invil.mu
Global Strat Managed A Acc USD $ 96.06 - 0.35 0.15 JPM Brazil Equity A (dist)-USD (1) F $ 8.53 - 0.03 - LG India Fd Ltd $ 55.30 - -0.44 0.00 Euro Corporate Bond AX F £ 22.51 - 0.05 3.82
Other International Funds Global Convertible A (Dis) F $ 17.28 - 0.04 0.74 Global Bond A1 $ 11.54 - 0.00 0.00
Global Strat Managed A Inc USD $ 42.05 - 0.15 0.17 JF Eastern Europe Eq A (dist)-EUR (1) F € 28.49 - -0.03 - Euro Liquidity A F € 12.88 - 0.00 0.00
NAV £ 4.37 - 0.01 0.00 Global Convertible B (Cap) F $ 20.21 - 0.05 0.00 Global Conc.A1 $ 25.35 - 0.00 0.00
JF Latin Am Eq A (dist)-USD (1) F $ 39.88 - 0.22 - Lloyds TSB Offshore Fd Mgrs (1000)F (JER) Euro Strategic Bond A F € 37.73 - 0.11 0.00
High Income Bond A Acc GBP Hdg £ 68.81 - 0.02 6.93 Global Convertible A Hdg GBP(Dis) F £ 11.13 - 0.01 0.71 Global Energy Fund A1 $ 14.63 - 0.00 0.00
PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555
Intrinsic Value Investors (IVI) LLP (IRL) High Income Bond A Inc GBP Hdg £ 17.38 - 0.01 6.93 JPM Eastern Europe Eq A (acc)-EUR (1) F € 17.75 - -0.01 - FSA Recognised Global Equity A1 $ 33.15 - 0.00 0.00
European Currencies High Yield Bd A F € 17.91 - 0.02 0.00
1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210 Global Convertible B Hdg GBP (Cap) F £ 12.92 - 0.02 0.00
Inv Grade Corp Bond A Acc USD $ 21.03 - 0.00 3.99 JPM Eastern Europe Eq A (acc)-USD (1) F $ 116.12 - 0.42 - Lloydstrust Gilt £ 12.4900 - -0.0400 2.79 European Equity Alpha A F € 32.07 - 0.25 0.00
FSA Recognised Global Convertible Hdg A (Cap) F $ 16.51 - 0.02 0.78 Global Equity A1 € 16.30 - 0.00 0.00
Inv Grade Corp Bond A Inc USD $ 29.89 - 0.00 4.03 JPM Eastern Europe Eq A (dist)-EUR (1) € 42.60 - -0.03 - Kleinwort Benson (Channel Islands) Investment Management Limited (JER) Lloyds TSB Offshore Funds Ltd Global Multi-Asset A1 $ 15.28 - 0.00 0.00
European Property A F € 21.88 - 0.04 0.00
IVI European Fund EUR € 12.31 - 0.04 0.00 Global Convertible B Hdg (Dis) F $ 19.33 - 0.02 0.00 Regulated
Latin Amer.Corp.Debt A Acc USD $ 25.18 - 0.00 6.00 JPM Em Eur MEA Eq A (acc)-EUR (1) F € 16.44 - 0.04 - Capital Growth £ 1.7990 - 0.0020 1.17 Eurozone Equity Alpha A F € 7.70 - 0.07 0.00
IVI European Fund GBP £ 13.76 - 0.10 0.00 Global Convertible A Hdg EUR(Dis) F € 13.66 - 0.02 0.72 Kleinwort Benson Global Funds Limited Global Res.A1 $ 20.38 - 0.00 0.00
Latin Amer.Corp.Debt A Inc USD $ 20.26 - -0.01 6.03 JPM Em Eur MEA Eq A (acc)-USD (1) F $ 19.84 - 0.13 - Euro High Income € 1.6260 - 0.0000 4.38 Global Bond A F $ 40.26 - 0.05 0.00
Global Convertible B Hdg EUR (Cap) F € 14.59 - 0.02 0.00 Bond & Equity £ 4.59 - -0.05 4.34 Global Total Return A1 € 12.99 - 0.00 0.00
Latin Amer.Eq. A Acc USD $ 20.44 - 0.14 0.75 JPM Em Eur MEA Eq A (dist)-USD (1) F $ 55.20 - 0.37 - European £ 6.4490 - 0.0330 0.86 Global Brands A F $ 75.42 - 0.16 0.00
Global Convertible A Hdg CHF (Dis) FSFr 19.86 - 0.03 0.59 High Yield A1 $ 22.94 - 0.00 0.00
Latin Amer.Sm Cos A Acc USD $ 24.22 - 0.10 - JPM Em Eur MEA Afr Eq A (acc)-SGD (1) F S$ 12.69 - 0.06 - Kleinwort Benson (CI) Fund Services Ltd (GSY) High Income £ 0.8805 - -0.0018 5.37 High Yield Fund A1 € 12.92 - 0.00 0.00
Global Convertible Bond A F $ 35.43 - -0.01 0.00
Global Convertible B Hdg CHF (Cap) FSFr 21.62 - 0.02 0.00
Regulated Global Property A F $ 22.93 - 0.03 0.00
Managed Currency A Acc USD $ 129.82 - 0.13 - JPM Em MEA Eq A (acc)-SGD (1) F * S$ 12.28 - 0.06 - International £ 3.3470 - -0.0150 0.08 Inflation-Adjusted Bond A1 $ 15.26 - 0.00 0.00
Kleinwort Benson Elite PCC Ltd
Managed Currency A Inc USD $ 35.02 - 0.03 - JPM Em Mkt Alpha Pl A (dist)-GBP (1) F £ 6.75 - 0.01 - North American £ 10.9300 - -0.0400 0.00 Indian Equity A F $ 24.37 - -0.16 0.00
Elite Multi-Asset Balanced USD Fund A Income Shares $ 1.07 - -0.01 0.00 Japan Equity A1 $ 7.80 - 0.00 0.00
Multi-Asset Protector Fund A Acc USD $ 18.84 - 0.01 - JPM Em Mkt Alpha Pl A (acc)-USD (1) F $ 14.69 - 0.06 - Sterling Bond £ 1.4410 - -0.0040 3.88 Latin American Equity A F $ 65.02 - 0.22 0.00
Elite Multi-Asset Balanced USD Fund B Shares (Susp) $ 1.03 1.03 0.14 - Latin American Equity Fd A1 $ 21.13 - 0.00 0.00
Sterling Money A Acc GBP £ 56.46 - 0.01 0.05 JPM Em Mkt Alpha Pl A (dist)-USD (1) F $ 14.22 - 0.06 - UK £ 6.1980 - 0.0090 1.83 Short Maturity Euro Bond A F € 19.96 - 0.01 0.00
Elite Sterling Fixed Income A GBP Income Rpt £ 11.66 - 0.08 3.51 Limited Maturity A1 $ 14.02 - 0.00 0.00
Sterling Money A Inc GBP £ 9.96 - 0.00 0.05 JPM Em Mkt Eq A (dist)-GBP (1) F £ 31.15 - 0.09 - Lloyds TSB Offshore Gilt Fund Ltd US Dollar Liquidity A F $ 13.03 - 0.00 0.00
EUR Currency B EUR Accumulating Non-Rpt € 1.00 - 0.00 - Prudent Wealth Fd A1 $ 12.02 - 0.00 0.00
UK Equity A Acc GBP £ 10.82 - 0.11 1.38 JPM Em Mkt Eq A (acc)-EUR (1) F € 13.18 - 0.00 - Lloyds TSB Gilt Fund Quarterly Share £ 1.2890 - -0.0050 2.69 US Growth A F $ 39.35 - 0.03 0.00
EUR Fixed Income A EUR Income Rpt € 1.00 - 0.00 - Research Bond A1 $ 16.00 - 0.00 0.00
UK Equity A Inc GBP £ 60.34 - 0.56 1.41 JPM Em Mkt Eq A (acc)-USD (1) F $ 21.43 - 0.11 - Jubilee Financial Products LLP Monthly Share £ 1.2450 - -0.0050 2.69 UK Equity A1 £ 6.50 - 0.00 0.00
US Growth AH F € 27.41 - 0.02 0.00
EUR Fixed Income B EUR Income Rpt € 1.00 - 0.00 -
JPM Em Mkt Eq A (dist)-USD (1) $ 29.89 - 0.15 - Other International Funds Lloyds TSB Money Fund Ltd US Growth AX F £ 24.48 - -0.03 0.00
Invesco (LUX) US Dollar Money A Acc USD $ 65.62 - 0.00 0.11 US Conc.Growth A1 $ 10.70 - 0.00 0.00
Jubilee Emerging Europe Momentum Fund € 99.81 - - - EUR Fixed Income C EUR Income Rpt € 1.00 - 0.00 -
Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282 US Dollar Money A Inc USD $ 20.06 - 0.00 0.10 JPM Em Mkt Infra Eq A (acc)-EUR (1) F € 14.84 - -0.02 - Australian Dollar A$ 167.1750 - 0.0090 2.17 US Property A F $ 51.83 - 0.00 0.00
GBP Currency B GBP Accumulating Non-Rpt £ 1.00 - 0.00 - US Government Bond A1 $ 16.86 - 0.00 0.00
FSA Recognised Euro € 52.9990 - 0.0000 -0.35
JPM Em Mkt Infra Eq A (acc)-USD (1) F $ 7.68 - 0.02 - Value A1 $ 15.18 - 0.00 0.00
Invesco Management SA Investec Asset Mgmt (Guernsey) Ltd (GSY) International Bond A GBP Income Rpt £ 1.00 - 0.00 - Morgens Waterfall Vintiadis.co Inc
JPM Em Mkts Ccy Alpha A (acc)-EUR (1) F € 9.76 - 0.02 - New Zealand Dollar NZ$ 201.3150 - 0.0080 1.38
Invesco Asia Balanced A dist $ 15.66 - 0.04 4.57 Regulated International Bond B GBP Accumulating Non-Rpt £ 1.00 - 0.00 - Other International Funds
JPM Em Mkts Lcl Cur Dbt A (dist)-EUR(1) F € 101.90 - -0.08 - Sterling Class £ 52.4050 - 0.0000 0.12 MMIP Investment Management Limited (GSY)
Invesco Asia Consumer Demand Fund A income $ 11.58 - 0.07 0.36 Investec Expert Investment Funds PCC Limited Phaeton Intl (BVI) Ltd (Est) $ 392.55 - -5.62 0.00
International Bond C GBP Income Rpt £ 1.00 - 0.00 - Regulated
JPM Em Mkts Loc Ccy Debt A (div)-EUR € 104.39 - -0.09 - US Dollar Class $ 60.8220 - 0.0000 -0.16
Invesco Asia Infrastructure (A) $ 13.12 - 0.06 1.19 Global Commodities & Resources A USD $ 29.00 - 0.20 - Multi-Manager Investment Programmes PCC Limited
International Equity A GBP Income Rpt £ 1.00 - 0.00 -
JPM Em Mkts Loc Ccy Debt A (dist)-GBP (1) F £ 81.68 - 0.12 - Lloyds TSB Offshore Multi Strategy Fund Ltd
Investec Professional Funds PCC Ltd European Equity Fd Cl A Initial Ser € 1687.53 1693.97 20.72 0.00
Invesco Asia Opportunities Equity A $ 89.34 - 0.40 0.00 International Equity A GBP Reinvest Rpt £ 1.00 - 0.00 -
JPM Em Mkts Loc Ccy Debt A (mth)-USD (1) F $ 15.31 - 0.05 - Conservative Strategy £ 1.0670 - 0.0000 2.89
Global Diversified Growth I USD $ 21.16 - 0.06 - Swiss & Global Asset Management (LUX) Japanese Equity Fd Cl A Initial Ser ¥ 173304.00 174299.00 2833.00 0.00
Invesco Absolute Return Bond Fund A € 2.84 - 0.00 0.00 International Equity B GBP Accumulating Non-Rpt £ 0.98 - -0.02 -
JPM Em Mkts Eq A (acc)-SGD (1) F S$ 13.05 - 0.05 - funds@swissglobal-am.com, www.jbfundnet.com Growth Strategy £ 1.2600 - 0.0010 1.37
Global Diversified Growth A USD $ 29.25 - 0.08 - MMIP - US EQUITY CLASS A 01 June 07 Series $ 914.39 917.15 29.54 0.00
Invesco Balanced Risk Allocation Fund A € 14.12 - 0.04 0.00 International Equity C GBP Income Rpt £ 1.00 - 0.00 -
Investec Premier Funds PCC Ltd JPM Em Mkt Sm Cap A (acc)-EUR (1) F € 7.63 - -0.02 - Regulated Aggressive Strategy £ 1.3350 - 0.0030 0.38
Invesco Capital Shield 90 (EUR) A € 11.47 - 0.02 0.00 Multi Asset Balanced A EUR Accumulating Rpt € 1.00 - 0.00 - Pacific Basin Fd Cl A Initial Ser $ 2325.58 2352.72 117.28 0.00
JB BF ABS-EUR/A € 76.64 - 0.02 3.29 Global USD Growth Strategy $ 1.0550 - 0.0010 -
Africa A USD $ 21.35 22.48 1.81 - JPM Em Mkt Sm Cap A (dist)-GBP (1) F £ 5.60 - 0.00 -
Invesco Emerging Europe Equity Fund A $ 10.49 - 0.09 0.00 Multi Asset Balanced A GBP Income Rpt £ 1.28 - -0.01 0.00 UK Equity Fd Cl A Series 01 £ 1520.40 1536.46 46.24 0.00
JB BF Absolute Ret Def-EUR/A € 106.23 - -0.05 2.78 Dealing Daily Natixis International Funds (Lux) I SICAV (LUX)
Pan Africa A USD $ 28.46 29.95 2.16 - JPM Em Mkt Sm Cap A (acc)-USD (1) F $ 9.87 - 0.02 -
Invesco Emerging Local Currencies Debt A Inc $ 10.90 - 0.03 5.33 Multi Asset Balanced A GBP Reinvest Rpt £ 1.28 - -0.01 0.00 Diversified Absolute Rtn Fd USD Cl AF2 $ 1492.86 - -0.41 0.00
JB BF Absolute Ret Def-GBP/A £ 106.00 - -0.06 2.64 Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000
JPM Europe Conv Eq A (dist)-EUR (1) F € 20.27 - 0.16 - Diversified Absolute Return Stlg Cell AF2 £ 1505.77 - -0.41 0.00
Invesco Emerging Mkt Quant.Eq. A $ 11.32 - 0.07 0.00 J O Hambro Capital Mgmt Ltd (IRL) Multi Asset Balanced B GBP Income Rpt £ 1.24 - -0.01 0.00 FSA Recognised
JB BF Absolute Ret EM-CHF SFr 101.97 - -0.02 0.00
14 Ryder Street, London SW1Y 6QB, United Kingdom JPM Latin Am Eq A (acc)-USD (1) F $ 29.84 - 0.16 - Absolute Asia AM Pac Rim Eq Fd IA $ 92.59 92.59 0.64 0.00
Invesco Energy A $ 23.37 - 0.00 0.00 JB BF Absolute Ret EM-EUR/A € 105.74 - -0.02 3.00 Multi Asset Balanced A USD Accumulating Rpt $ 1.00 - 0.00 -
Phone: 0845 450 1972 JPM Latin Am Eq A (dist)-USD (1) $ 55.12 - 0.30 - MAM Funds (IRL)
Invesco Euro Corporate Bond Fund (A) € 15.03 - 0.02 0.00 ASG Laser Fund I/A (USD) H $ 1142.87 1142.87 3.15 0.00
JB BF Absolute Ret EM-USD/A $ 103.97 - -0.02 2.76 Multi Asset Balanced A USD Accumulating Non-Rpt $ 1.00 - 0.00 - Regulated
FSA Recognised JPM Latin Am Eq A (acc)-SGD (1) F S$ 12.42 - 0.06 -
Invesco Euro Inflation Linked Bond A € 15.06 - -0.02 0.00 Miton Global Diversified Income A 101.33 - -0.19 - Harris Associates Global Value Fund H € 160.18 160.18 -0.49 0.00
Asia ex Japan EUR Retail € 1.31 - 0.00 0.00 JB BF Absolute Ret Pl-EUR/A € 106.46 - -0.08 3.44 Multi Asset Balanced B EUR Accumulating Non-Rpt € 0.99 - -0.01 -
JPM Russia A (acc)-USD (1) F $ 11.74 - -0.02 - Harris Associates US Large Cap Value Fund $ 153.60 153.60 0.00 0.00
Invesco Euro Reserve A € 322.62 - 0.00 0.00 Asia ex Japan GBP Retail £ 1.22 - 0.00 0.00 JB BF Absolute Ret Pl-GBP/A £ 112.49 - -0.10 3.21 Multi Asset Balanced B GBP Accumulating Non-Rpt £ 0.99 - -0.01 -
JPM Russia A (dist)-USD (1) F $ 11.40 - -0.02 - Lombard Odier Darier Hentsch (LUX) Man Investments Loomis Sayles Emerging Debt & Currencies Fund IA $ 159.82 159.82 0.57 0.00
Invesco European Bond A € 5.81 - 0.00 0.00 Asia ex Japan USD Retail $ 1.27 - 0.01 0.00 JB BF Absolute Ret Pl-USD/A $ 112.66 - -0.08 2.80 Multi Asset Balanced B USD Accumulating Non-Rpt $ 0.99 - -0.01 -
Equity Europe Queensberry House 3 Old Burlington Street London W1S 3AB Other International Funds
Invesco European Growth Equity A € 16.81 - 0.05 0.00 Loomis Sayles Global Credit Fund I/A (USD) H $ 143.53 143.53 0.27 0.00
Asia ex Japan SMC EUR Retail € 1.28 - 0.01 0.68 JB BF Absolute Return GBP/A £ 108.99 - -0.08 2.57 Multi Asset Balanced C USD Accumulating Non-Rpt $ 1.00 - 0.00 - FSA Recognised Man AHL Alpha USD Shares $ 769.52 - -6.05 0.00
JF Euroland Eq A (dist)-USD (1) F $ 7.00 - 0.11 - Loomis Sayles US Large Cap Value $ 101.60 101.60 -0.23 0.00
Invesco Global Absolute Return Fund A Class € 10.73 - 0.02 0.00 Asia ex Japan SMC GBP Retail £ 1.19 - 0.01 1.13 JB BF Absolute Return-GBP/B £ 124.14 - -0.08 0.00 Multi Asset Conservative A EUR Accumulating Rpt € 1.00 - 0.00 - Lombard Odier Funds
JF Europe Dynamic A (dist)-EUR (1) € 14.00 - 0.11 - Man AHL Diversified Plc $ 88.43 - -0.93 0.00
Invesco Global Bond A Inc $ 5.64 - 0.01 1.68 1798 Europe Eq. L/S CHF C A SFr 10.25 - -0.03 0.00 Vaughan Nelson US Small Cap Val Fund IA $ 189.57 189.57 0.00 0.00
Asia ex Japan SMC USD Retail $ 1.24 - 0.01 0.51 JB BF Absolute Return-EUR/A € 103.64 - -0.06 2.80 Multi Asset Conservative A GBP Income Rpt £ 1.05 - 0.00 0.00
JF Europe Eq A (dist)-USD (1) F $ 34.08 - 0.39 -
Invesco Global Equity Income Fund A $ 45.07 - 0.13 0.00 Multi Asset Conservative A GBP Reinvest Rpt £ 1.05 - 0.00 1.47 1798 Europe Eq. L/S EUR C A € 10.34 - -0.03 0.00 Mangart Global Fund Ltd (CYM)
All Europe Dynamic Growth EUR Retail € 1.01 - 0.00 0.00
JF Europe Sm Cap A (dist)-EUR (1) F € 10.49 - 0.06 -
JB BF Absolute Return-USD/A $ 105.87 - -0.07 2.70
Regulated Natixis International Funds (Dublin) I plc (IRL)
Invesco Global Inc Real Estate Sec A dist $ 8.97 - 0.02 3.18 All Europe Dynamic Growth GBP Retail £ 0.96 - 0.00 0.00 JB BF Cred Opportunities-EUR/B € 155.51 - -0.01 0.00 Multi Asset Conservative A USD Accumulating Rpt $ 1.00 - 0.00 - 1798 Europe Eq. L/S USD C A $ 10.30 - -0.03 0.00 Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA +44 (0)20 3216 9000
JF Germany Eq A (dist)-EUR (1) F € 20.41 - 0.20 - B Shares EUR Nav (Final) € 149.23 - 6.19 0.00
Invesco Global Inv Grd Corp Bond A Dist $ 11.33 - 0.00 3.01 Multi Asset Conservative B EUR Accumulating Non-Rpt € 1.00 - 0.00 - 1798 Optimum Trend (EUR) P A € 11.67 - 0.00 0.00 Regulated
Continental European Ret GBP £ 2.27 - 0.02 2.02 JB BF Credit Opportunities-USD $ 109.22 - 0.01 0.00 B Shares USD Nav (Final) $ 149.23 - 6.19 0.00
JPM Euroland Eq A (acc)-EUR (1) F € 9.74 - 0.10 - Loomis Sayles Global Opportunist Bond Fund H-S/D GBP £ 10.77 10.77 0.00 5.81
Invesco Global Leisure A $ 21.52 - 0.00 0.00 Continental European Ret EURO H € 2.06 - 0.02 0.31 JB BF Dollar-USD/A $ 116.48 - -0.03 3.90 Multi Asset Conservative B GBP Accumulating Non-Rpt £ 1.00 - 0.00 - 1798 Optimum Trend (USD) P A $ 11.23 - 0.00 0.00
JPM Euroland Eq A (dist)-EUR (1) € 30.17 - 0.33 - Loomis Sayles Multisector Inc Fd I USD $ 13.37 13.37 -0.01 5.67
Invesco Global Smaller Comp Eq Fd A $ 36.68 - 0.19 0.00 Emerging Markets Retl Inc NAV £ 0.97 - 0.00 0.00 JB BF Dollar Med Term-USD/A $ 122.90 - -0.03 2.60 Multi Asset Conservative B GBP Income Rpt £ 1.02 - 0.00 1.51 All Roads (CHF) PA SFr 16.26 - 0.00 - Manulife Global Fund (LUX)
JPM Euroland Eq A (inc)-EUR (1) F € 5.36 - 0.06 - 31 Z.A. Bourmicht, L-8070 Bertrange, Luxembourg Loomis Sayles Inst High Inc Fd I USD $ 8.27 8.27 -0.02 10.23
Invesco Global Structured Equity A $ 31.91 - 0.16 1.00 Emerging Mkts EUR Retl Inc NAV € 1.03 - 0.00 1.35 JB BF EM Infl Linked-CHF/A SFr 103.93 - 0.45 1.02 Multi Asset Conservative B USD Accumulating Non-Rpt $ 1.00 - 0.00 - All Roads (USD) PA $ 10.18 - 0.00 -
JPM Europe Conv Eq A (acc)-EUR (1) F € 14.57 - 0.11 - www.manulife.com.hk Loomis Sayles Global Opportunist Bond Fd I USD $ 14.25 14.25 0.03 6.21
Invesco Global Total Ret.(EUR) Bond Fund A € 11.88 - -0.01 0.00 Emerging Markets USD Retail $ 1.19 - 0.01 0.00 JB BF EM Infl Linked-EUR/A € 105.03 - 0.45 1.01 Multi Asset Conservative C GBP Income Rpt £ 1.31 - -0.01 - All Roads (GBP) PA £ 10.32 - 0.00 - FSA Recognised
JPM Europe Dyn A (dist)-EUR (1) F € 12.24 - 0.10 -
Invesco Gold & Precious Metals A $ 10.08 - 0.06 0.00 European Select Values Ret GBP H £ 2.84 - 0.02 0.30 JB BF EM Infl Linked-GBP/A £ 103.63 - 0.44 0.15 Multi Asset Conservative C GBP Income Rpt £ 1.06 - 0.00 - All Roads (EUR) PA € 10.34 - 0.00 - American Growth Fund A $ 19.93 - -0.03 0.00 Natwest (IRL)
JPM Europe Dyn A (acc)-EUR (1) F € 13.51 - 0.11 -
Invesco Greater China Equity A $ 33.61 - 0.21 0.00 Multi Asset Growth A EUR Accumulating Rpt € 1.00 - 0.00 - Alpha Japan (EUR) P A F € 6.10 - -0.07 0.00 Asia Total Return Fund (Class AA) F $ 1.03 - 0.00 2.68 Guild Hse PO Box 4935 Guild St, IFSC, Dublin 1
European Select Values Ret EURO H € 1.40 - 0.01 0.29 JB BF EM Infl Linked-USD/A $ 105.46 - 0.45 1.58
JPM Europe Dyn A (dist)-GBP (1) F £ 14.99 - 0.16 - 00353 1 642 8400
Invesco India Equity A $ 36.47 - 0.55 0.00 European Retail GBP H £ 1.97 - 0.01 1.26 JB BF Emerging-CHF/A SFr 107.69 - -0.06 - Multi Asset Growth A GBP Reinvest Rpt £ 1.07 - -0.01 0.00 Alpha Japan (CHF) P A F SFr 7.72 - -0.09 0.00 Asia Value Dividend Equity Fund AA F $ 1.37 - 0.01 1.23
JPM Europe Dyn Mega Cap A (acc)-EUR (1) € 9.69 - 0.13 - FSA Recognised
Invesco Japanese Equity Adv Fd A ¥ 1845.00 - 17.00 0.00 European Retail EURO H € 0.69 - 0.00 112.13 JB BF Emerging-EUR/A € 143.02 - -0.05 4.19 Multi Asset Growth A GBP Income Rpt £ 1.07 - -0.01 0.00 Alpha Japan (JPY) P A F ¥ 707.00 - -8.00 0.00 American Growth Fund AA F $ 1.14 - 0.00 0.00
JPM Europe Dyn Mega Cap A (acc)-USD (1) F $ 9.62 - 0.17 - Series 10
Invesco Japanese Value Eq Fd A ¥ 597.00 - 7.00 0.00 Global Emerging Markets Opportunities GBP Retail £ 0.87 - 0.00 0.00 JB BF Emerging-USD/A $ 164.00 - -0.09 4.54 Multi Asset Growth A USD Accumulating Rpt $ 1.00 - 0.00 - Alpha Japan (USD) P A F $ 8.73 - -0.10 0.00 Asian Equity Fund A $ 2.62 - 0.03 0.51 Absolute Rtn Multi Asset Prog SER 10 GBP F £ 9.83 - -0.02 -
JPM Europe Dyn Mega Cap A (inc)-EUR (1) F € 7.58 - 0.10 -
Invesco Latin American Equity A $ 10.18 - 0.04 0.00 Global Emerging Markets Opportunities USD Retail $ 0.87 - 0.00 0.00 JB BF Euro Government-EUR/A € 109.26 - 0.03 4.05 Multi Asset Growth B EUR Accumulating Non-Rpt € 0.99 - -0.01 - Alternative Beta P A F SFr 115.09 - -0.12 0.00 Asian Equity Fund AA F $ 0.84 - 0.01 0.17
JPM Europe Dyn Mega Cap A (dist)-EUR (1) F € 7.32 - 0.10 -
Invesco Nippon Small/Mid Cap Equity A ¥ 497.00 - 2.00 0.00 Global Emerging Markets Opportunities EUR Retail € 0.97 - 0.00 0.00 JB BF Euro-EUR/A € 125.16 - 0.01 4.19 Multi Asset Growth B GBP Accumulating Non-Rpt £ 0.99 - -0.01 - Alternative Beta P A F € 76.80 - -0.08 0.00 Asian Small Cap Equity Fund AA F $ 1.75 - 0.02 0.23
JPM Europe Dyn Sm Cap A (dist)-EUR (1) F € 11.20 - 0.08 -
Invesco Pan European Equity A EUR Cap NAV € 12.20 - 0.06 0.00 Global Opportunities Fund Euro Retail € 1.05 - 0.00 - JB BF Global Convert-EUR/A € 66.60 - -0.06 1.35 Multi Asset Growth B GBP Income Rpt £ 0.99 - -0.01 - Alternative Beta P A F $ 114.11 - -0.12 0.00 China Value Fund A $ 6.76 - 0.04 0.32
JPM Europe Dyn Sm Cap A (acc)-EUR (1) € 19.32 - 0.15 -
Invesco Pan European High Income Fd A € 11.64 - 0.02 4.79 Global Opportunities Fund Sterling Retail £ 1.05 - 0.00 - JB BF Global High Yield-EUR/A € 110.58 - 0.01 6.55 Multi Asset Growth B USD Accumulating Non-Rpt $ 0.99 - -0.01 - Clean Tech P A F € 5.49 - -0.03 0.00 China Value Fund AA F $ 2.12 - 0.01 0.04
JPM Europe Eq A (acc)-EUR (1) F € 10.56 - 0.08 -
Invesco Pan European Small Cap Equity A € 13.03 - 0.12 0.00 Global Opportunities Fund USD Retail $ 1.09 - 0.01 - JB BF Global High Yield GBP/A £ 104.73 - 0.02 1.55 Multi Asset Growth C GBP Income Rpt £ 1.00 - 0.00 0.00 Commodities (CHF) P A SFr 8.30 - 0.00 0.00 Dragon Growth Fund A $ 1.50 - 0.02 0.56
JPM Europe Eq A (dist)-EUR (1) € 32.20 - 0.23 -
Invesco Pan European Structured Equity A € 10.87 - 0.04 0.00 Global Select Retail EUR € 1.33 - 0.00 0.00 JB BF Global High Yield-USD/A $ 120.54 - 0.04 5.80 Sterling Fixed Income B GBP Income Rpt £ 1.01 - 0.01 - Commodities (EUR) P A € 8.39 - 0.01 0.00 Dragon Growth Fund AA F HK$ 7.28 - 0.08 0.04
JPM Europe Eq A (cap)-USD (1) F $ 13.12 - 0.16 -
Invesco UK Investment Grade Bond A £ 0.95 - 0.00 3.13 Sterling Fixed Income C GBP Income Rpt £ 1.00 - 0.00 - Commodities (USD) P A $ 8.46 - 0.00 0.00 Emerging Eastern Europe Fund AA F $ 1.91 - 0.01 0.05 Nevsky Capital LLP (IRL)
Global Select Retail GBP £ 1.35 - 0.00 0.00 JB BF Inflation Linked-CHF/B SFr 106.46 - 0.02 0.00
JPM Europe Focus A (acc)-EUR (1) F € 9.46 - 0.05 - 51 Berkeley Square, London W1J 5BB +44 (0)20 7360 8888
Invesco US Structured Equity A $ 15.21 - 0.00 0.00 Japan Hedged Retail GBP £ 0.86 - 0.01 1.56 JB BF Local Emerging-CHF/A SFr 104.32 - 0.54 1.45 USD Currency B USD Accumulating Non-Rpt $ 1.00 - 0.00 - Convertible Bd P A € 14.37 - 0.01 0.00 Emerging Eastern Europe Fund A $ 4.43 - 0.02 0.17
JPM Europe Focus A (acc)-USD (1) F $ 11.33 - 0.11 - FSA Recognised
Invesco US Value Eq Fd A $ 22.79 - -0.01 0.00 Japan Ret GBP £ 1.27 - 0.00 1.03 JB BF Local Emerging-EUR/A € 105.16 - 0.54 4.85 Convertible Bd Asia P A F SFr 13.23 - 0.00 0.00 Emerging Markets Infrastructure Fund Class AA $ 0.97 - 0.00 - Traditional Funds Plc
JPM Europe Focus A (dist)-EUR (1) F € 7.93 - 0.04 -
Invesco USD Reserve A $ 87.02 - 0.00 0.00 Japan Ret EURO € 1.05 - 0.00 0.61 JB BF Local Emerging-GBP/A £ 117.67 - 0.60 3.65 Convertible Bd Asia P A F € 13.97 - 0.00 0.00 European Growth Fund A $ 8.85 - -0.03 1.08 Eastern European $ 78.54 - -0.78 0.00
JPM Europe Micro Cap A (acc)-EUR (1) F € 11.09 - 0.06 -
Japan Ret JPY ¥ 159.39 - 1.88 0.01 JB BF Local Emerging-USD/A $ 141.28 - 0.71 4.50 Convertible Bd Asia P A F $ 13.96 - 0.00 0.00 European Growth Fund AA F $ 0.63 - 0.00 0.70
Invesco Global Asset Management Ltd (IRL) JPM Europe Micro Cap A (dist)-EUR (1) F € 10.83 - 0.06 - Nevsky Capital LLP
Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200 UK Growth Retail GBP £ 1.88 - 0.01 1.55 JB BF Swiss Franc-CHF/B SFr 189.71 - -0.03 0.00 Emerging Consumer (CHF) P A SFr 11.87 - -0.01 - Global Contrarian Fund AA F $ 0.86 - 0.00 0.00
JPM Europe 130/30 A (acc)-EUR (1) F € 9.04 - 0.04 - Other International Funds
FSA Recognised JB BF Total Return-CHF SFr 104.88 - -0.01 0.00 Emerging Consumer (EUR) P A € 12.01 - -0.01 - Global Property Fund AA F $ 0.88 - 0.00 0.38
JPM Europe 130/30 A (acc)-USD (1) F $ 12.79 - 0.11 - Nevsky Fund Plc EUR Acc € 1151.55 - -4.49 0.00
Invesco Stlg Bd A QD F £ 2.52 - 0.00 4.93 JPMorgan Asset Mgmt (1200)F (UK)
Emerging Consumer (USD) P A $ 11.86 - -0.05 - Global Resources Fund AA F $ 1.05 - 0.00 0.00
Finsbury Dials, 20 Finsbury Street, London EC2Y 9AQ JB BF Total Return-EUR/A € 46.48 - 0.00 3.68 Nevsky Fund Plc GBP Acc £ 1157.98 - -4.67 0.00
JPM Europe Sel 130/30 A (acc)-EUR (1) F € 7.71 - 0.06 - Legg Mason Dublin Funds (IRL)
Invesco Asian Equity A $ 5.58 - 0.03 0.37 Emerging Eq.Risk Par.(EUR) € 8.31 - -0.01 0.00 Healthcare Fund AA F $ 1.19 - 0.00 0.00
Brokerline: 0800 727 770, Clients: 0800 20 40 20 JB Commodity-EUR/A € 74.02 - -0.13 1.37 Rochestown, Drinagh, Wexford, Ireland Nevsky Fund Plc USD Acc $ 1167.88 - -4.67 0.00
JPM Europe Sel 130/30 A (acc)-USD (1) F $ 11.22 - 0.14 -
Invesco ASEAN Equity A $ 101.65 - 0.23 0.33 Authorised Inv Funds FSA Recognised Emerging Eq. Risk Par.(USD) $ 7.53 - 0.04 0.00 India Equity Fund AA F $ 1.00 - 0.01 0.00
JB Commodity-EUR/B € 85.39 - -0.15 0.00
JPM Europe Sel 130/30 A (dist)-EUR (1) F € 10.25 - 0.08 -
Invesco Bond A $ 30.09 - -0.03 1.89 JPM Retail OEIC (A class unless stated) Legg Mason Global Funds PLC Emerging Loc.Cur.&Bds DH (CHF) P ASFr 9.46 - 0.01 0.00 International Growth Fund A $ 3.38 - 0.00 0.00
JB Commodity-USD/A $ 84.18 - -0.14 1.26
JPM Europe Sel 130/30 A (dist)-GBP (1) F £ 5.63 - 0.06 -
Invesco Continental Eurp Small Cap Eqty A $ 127.89 - 1.54 0.46 Diversified Real Ret Acc 50.71 - -0.04 - Equity Funds Emerging Mkt.Bd.Fdt PA $ 23.51 - -0.13 0.00
JB Commodity-USD/B $ 97.14 - -0.17 0.00 International Growth Fund AA F $ 0.78 - 0.00 0.00
JPM Europe Sm Cap A (acc)-EUR (1) F € 12.91 - 0.07 -
Invesco Emerging Markets Equity A $ 35.42 - 0.20 0.00 Diversified Real Ret Inc 50.63 - -0.03 - BFM Asia Pacific Equity A dis(A) $ 191.82 - -2.37 0.64 Emerg.Loc.Cur.Bd.Fdt PA SFr 10.38 - -0.03 0.00
JB EF Abs Ret Europe-EUR/A € 109.74 - 0.16 0.09 Japanese Growth Fund A $ 2.46 - 0.02 0.00
JPM Europe Sm Cap A (dist)-EUR (1) € 35.31 - 0.18 -
Invesco Emerging Markets Bond A $ 23.33 - 0.00 4.74 BMF Emerging Markets Eq Pr dis(A) $ 83.35 - -0.78 0.79 Emerg.Loc.Cur.Bd.Fdt PA € 12.37 - -0.03 0.00 Japanese Growth Fund AA F $ 0.63 - 0.01 0.04
JB EF Abs Ret Europe-EUR/B € 109.73 - 0.16 0.00
JPM Europe Sm Cap A (dist)-GBP (1) F £ 14.10 - 0.10 -
Invesco Continental European Equity A € 5.07 - 0.04 1.23 BFM European Equity A dis(A) € 118.39 - 0.89 1.82 Emerg.Loc.Cur.Bd.Fdt PA $ 11.15 - 0.04 0.00 Latin America Equity Fund AA F $ 1.18 - 0.00 0.71
JB EF Asia-USD/A $ 118.27 - 0.92 0.51
JPM Europe Strat Grth A (acc)-EUR (1) F € 13.08 - 0.05 -
Invesco Gilt A £ 14.30 - -0.04 2.57 BFM Intl Large Cap A dis(A) $ 65.26 - -0.11 1.69 Euro BBB-BB Fdt PA SFr 14.32 - 0.00 0.00 Russia Equity Fund AA F $ 0.61 - 0.00 0.00 New Capital Fund Management Ltd (IRL)
JB EF Biotech-USD/A $ 146.12 - -2.09 0.06
JPM Europe Strat Grth A (dist)-EUR (1) F € 8.12 - 0.02 - Leconfield House, Curzon Street, London, W1J 5JB
Invesco Global Small Cap Equity A NAV $ 87.73 - 0.56 0.00 BW Global Opp.Fixed Inc A dis (M) $ 119.61 - 0.09 1.94 Euro BBB-BB Fdt PA € 11.16 - 0.00 0.00 Strategic Income AA F $ 1.13 - 0.00 3.79
JB EF Black Sea-EUR/A € 30.16 - -0.04 0.65 FSA Recognised
JPM Europe Strat Grth A (dist)-GBP (1) F £ 11.95 - 0.06 -
Invesco Global High Income A NAV $ 13.75 - 0.00 5.51 CBA US Aggressive Growth A dis(A) $ 107.90 - -0.15 0.00 Euro BBB-BB Fdt PA £ 9.77 - 0.00 0.00 Taiwan Equity Fund AA F $ 1.30 - 0.00 0.57
JB EF Black Sea-USD/A $ 29.29 - 0.13 0.34 New Capital UCITS Funds
JPM Europe Strat Val A (dist)-EUR (1) F € 10.67 - 0.11 -
Invesco Gbl R/Est Secs A GBP F F £ 6.30 - 0.00 1.07 CBA US Appreciation A dis(A) $ 110.33 - -0.09 0.00 Euro BBB-BB Fdt PA $ 15.83 - 0.01 0.00 Turkey Equity Fund AA F $ 0.98 - 0.01 0.26
JPMorgan Asset Management (Europe) S.a.r.l (LUX) JB EF Central Europe-EUR/A € 193.61 - 0.27 0.38 Asia Pacific Equity Fund USD Class A $ 104.65 - 0.10 2.48
JPM Europe Strat Val A (acc)-EUR (1) F € 9.64 - 0.10 -
Invesco Global Health Care A $ 78.55 - 0.07 0.00 6 Route de Trèves L-2633 Senningerberg Luxembourg CBA US Fundamental Value A dis(A) $ 88.41 - -0.36 0.00 Euro Credit Bd PA F € 11.73 - 0.00 0.00 US Bond Fund AA F $ 1.26 - 0.00 3.35
JB EF Chindonesia-USD/A $ 89.59 - 0.64 0.11 Asia Pacific Equity Fund EUR Class B € 102.05 - 0.09 2.76
JPM Europe Strat Val A (dist)-GBP (1) F £ 13.13 - 0.17 -
Invesco Global Select Equity A $ 10.69 - 0.05 0.00 Tel (352) 34 10 1 (Other funds) CBA US Large Cap Growth A dis(A) $ 111.33 - 0.33 0.00 Euro Government Fdt P A € 11.10 - -0.01 0.00 U.S. Special Opportunities Fund AA F $ 0.90 - 0.00 5.22
JB EF Chindonesia-USD/B $ 89.68 - 0.64 0.00 Asia Pacific Equity Fund GBP Class C £ 103.42 - 0.09 2.60
Fax (352) 34 10 8000 (Others funds) JPM Europe 130/30 A (dist)-EUR (1) F € 8.27 - 0.04 -
Invesco Jap Eqty Core A $ 1.17 - 0.01 0.31 LM Batterymarch Gbl Equity Fd $ 99.31 - -0.50 0.27 Euro Inflation-Lk Fdt PA € 11.48 - -0.01 0.00 US Small Cap Equity Fund AA F $ 0.91 - 0.00 0.00
www.jpmorgan.com/assetmanagement JB EF Energy Transition-EUR/B € 116.07 - 0.00 0.00 Asia Pacific Equity Fund CNY USD Hedged Class F $ 108.30 - 0.11 2.43
JPM Europe 130/30 A (dist)-GBP (1) F £ 6.66 - 0.04 -
Invesco Japanese Equity A $ 13.83 - 0.10 0.00 FSA Recognised GC Global Equity A dis(A) $ 88.09 - -0.40 0.20 Euro Resp.Corp. Fdt PA € 16.91 - 0.00 0.00 US Treasury Inflation-Protected Securities Fund AA F $ 1.39 - 0.00 0.75
JB EF Energy Transition-USD/B $ 118.23 - -0.26 0.00 Asia Pacific Equity Inc SGD Class D S$ 116.32 - 0.10 -
JPM Germany Eq A (dist)-EUR (1) F € 8.21 - 0.07 -
Invesco Korean Equity A $ 22.66 - -0.05 0.00 Equity US LM CM Growth A dis(A) $ 82.84 - -0.06 0.00 Europe High Conviction PA € 7.56 - 0.02 0.00
JB EF Euro Large Cap-EUR € 104.39 - 1.53 0.00 Asia Pacific Equity Inc USD I Class D $ 116.93 - 0.11 -
JPM Germany Eq A (acc)-EUR (1) F € 16.09 - 0.15 - Marlborough International Management Limited (GSY)
Invesco PRC Equity A $ 43.50 - 0.55 0.00 JF America Eq A (dist)-USD (1) F $ 50.54 - -0.22 - LM CM Opportunity A dis(A) $ 181.27 - -0.58 0.00 Eurozone Small&Mid Caps F € 35.28 - 0.01 0.00
JB EF Euroland Value-EUR/A € 106.97 - 1.76 1.53 Tudor House, Le Bordage, St Peter Port, Guernsey, CI, GY1 1DB +44 1481 71520 Dynamic European Equity EUR Cls D € 117.73 - 0.60 -
JPM Global Dyn A (acc)-SGD (1) F S$ 13.78 - -0.08 -
Invesco Pacific Equity A $ 36.33 - 0.26 0.38 JF US Smaller Co.A (dist)-USD (1) $ 16.57 - -0.05 - LM CM Value A dis(A) $ 113.02 - -0.22 0.00 Gbl.BBB-BB Fdmt PA € 10.04 - -0.03 - FSA Recognised
JB EF Europe Sel.Fd-EUR/A € 58.44 - 0.73 0.53 Dynamic European Equity GBP Cls D £ 125.29 - 0.63 -
JPM Global Div A (div) - USD (1) $ 108.71 - 0.48 -
Invesco Global Technology A $ 10.66 - 0.00 0.00 JF US Value A (dist)-USD (1) $ 14.27 - -0.09 - LM Permal Gl Absolute A dis(A) $ 101.22 - -0.13 0.00 Gbl.Gvt.Fdmt PA € 9.79 - -0.01 - Marlborough North American Fund Ltd £ 21.09 21.30 -0.46 0.00
JB EF Europe S&Mid Cap-EUR/A € 111.09 - 0.35 0.27 Dynamic European Equity USD Cls D $ 118.13 - 0.61 -
JPM High Eur STEEP A (dist)-GBP (1) F £ 9.62 - 0.05 -
Invesco UK Eqty A £ 5.73 - 0.01 1.82 JPM Am Eq A (acc)-USD (1) F $ 12.41 - -0.06 - LMHK China Fund A dis $ 93.89 - -1.42 0.43 Generation Global (CHF) P A F SFr 8.59 - 0.05 0.00 Marlborough Tiger Fund Ltd F £ 26.20 26.46 0.24 0.00
JB EF Europe-EUR/A € 168.74 - 1.84 1.18 Global Fixed Income USD $ 125.51 - 0.12 0.00
JPM High Eur STEEP A (acc)-EUR (1) F € 11.53 - 0.03 -
JPM Am Eq A (dist)-USD (1) $ 94.19 - -0.41 - PCM US Equity A cap $ 94.77 - -0.70 - Generation Global (EUR) P A F € 11.72 - 0.08 0.00
JB EF Global-EUR/A € 66.41 - -0.04 0.59 Global Fixed Income USD CNY Hedged $ 112.61 - 0.12 -
JPM High Eur STEEP A (acc)-USD (1) F $ 14.99 - 0.10 - Marwyn Investment Management LLP (CYM)
JPM Am Eq A (acc)-EUR Hdg (1) F € 7.61 - -0.03 - Royce Europ. Smaller Companies A acc € 122.12 - 0.13 0.89 Generation Global (USD) P A F $ 10.31 - 0.04 0.00
JB EF German Value-EUR/A € 162.94 - 1.68 1.58 Regulated Total Return Bond USD Cls $ 155.85 - 0.08 0.00
JPM High Eur STEEP A (inc)-EUR (1) F € 10.96 - 0.03 -
JPM Am L Cap A (acc)-EUR (1) F € 11.76 - 0.00 - Royce Global Smaller Companies A dis $ 118.26 - -0.63 0.00 Global Energy (USD) P A F $ 9.65 - -0.02 0.00 Marwyn Value Investors £ 324.84 - 13.77 0.00
JB EF Gl Emerging Mkts-EUR/A € 72.80 - -0.40 0.54 Total Return Bond EUR Cls € 147.18 - 0.07 0.00
JPM UK Eq A (acc)-GBP (1) F £ 11.73 - 0.08 -
JPM Am L Cap A (acc)-USD (1) F $ 12.87 - -0.05 - Royce Smaller Companies A dis(A) $ 179.58 - -0.62 0.00 Golden Age (CHF) P A F SFr 14.55 - -0.03 0.00
JB EF Health Opport - USD/A $ 123.13 - -0.16 0.08 Total Return Bond GBP Cls £ 164.63 - 0.08 0.00
JPM UK Eq A (dist)-GBP (1) £ 7.36 - 0.05 - Meditor Group Limited (BMU)
JPM Am L Cap A (dist)-USD (1) F $ 11.44 - -0.04 - Royce US Small Cap Opp A dis(A) $ 294.40 - -1.64 0.00 Golden Age (EUR) P A € 9.86 - -0.02 0.00
Equity Global JB EF Health Opport-USD/B $ 123.18 - -0.16 0.00 Regulated Total Return Bond Fund Canadian Dollar Class C$ 108.46 - 0.06 0.00
JPM US Smaller Co.A (acc)-USD (1) F $ 11.12 - -0.04 - Fixed Income Funds Golden Age (USD) P A F $ 13.63 - -0.03 0.00
Invest AD JF Gbl Dyn A (dist)-USD (1) F $ 13.19 - -0.09 - JB EF Japan-JPY/A ¥ 7307.00 - 108.00 0.25 European Hedge Fd (B) (Est) $ 566.44 - -4.69 0.00 Total Return Bond Fund CHF SFr 112.12 - 0.04 0.00
JPM US Smaller Co.A (dist)-USD (1) $ 113.06 - -0.34 - BW Global Fixed Inc A dis(S) $ 134.95 - 0.01 1.12 Government Bd (USD) P A $ 20.17 - 0.02 0.00
Client services: +971 2 692 6101 clientservices@InvestAD.com JF Gbl Eq (USD) A (dist)-USD (1) F $ 37.08 - -0.18 - JB EF Luxury Brands-EUR/A € 158.01 - 0.99 0.39 European Hedge Fd (C) (Est) $ 287.75 - -2.34 0.00 Total Return Bond Fund INR Hdg R $ 115.24 - 0.28 -
Other International Funds JPM H US STEEP A (acc)-EUR (1) F € 9.67 - -0.01 - WA Asian Opportunities A dis(D) $ 124.74 - 0.02 2.43 Invst.Gde A-BBB (CHF) P A SFr 12.88 - 0.00 0.00
JPM Gbl Div A (acc)-EUR (1) F € 83.60 - 0.00 - JB EF Luxury Brands-USD/A $ 138.24 - 0.56 0.30 Total Return Bond Fund USD $ 118.41 - 0.07 -
Invest AD - Iraq Opportunity Fund $ 84.15 - 0.34 0.00 JPM H US STEEP A (dist)-GBP (1) F £ 11.96 - -0.04 - WA Brazil Equity A dis(A) $ 73.33 - -0.16 2.77 Japan Small & Mid Caps P A ¥ 1596.00 - -16.00 0.00 Melchior Hedge Funds (CYM)
JPM Gbl Div A (div)-EUR Hdg (1) € 77.15 - 0.24 - JB EF Luxury Brands-GBP/B £ 95.05 - 0.65 0.00 Total Return Bond Fund USD I $ 113.77 - 0.06 -
Regulated
Invest AD - UAE Total Return Fund *AED 72.57 - 0.20 0.00 JPM US Value A (acc)-EUR Hdg (1) F € 7.86 - -0.05 - WA Div Strategic Income A dis(D) $ 94.44 - 0.10 3.11 Money Market (EUR) P A € 112.32 - 0.00 0.00
JPM Gbl Dyn A (dist)-GBP (1) F £ 12.60 - -0.07 - JB EF Special Val. EUR/A € 101.53 - 0.26 1.51 Melchior European Fund Ltd EUR Class € 153.45 - 0.03 - Total Return Bond GBP Distributor Class £ 115.59 - 0.05 4.29
Invest AD - Emerging Africa Fund $ 1052.31 - -8.30 - JPM H US STEEP A (inc)-EUR (1) F € 9.53 - -0.01 - WA Emerging Markets Bd A dis(D) $ 127.93 - -0.48 4.30 Money Market (GBP) P A F £ 10.22 - 0.00 0.00
JPM Gbl Dyn A (acc)-USD (1) F $ 12.19 - -0.08 - JB EF Swiss S&Mid Cap-CHF/B SFr 376.49 - 2.17 0.00 US Growth Class A USD $ 111.54 - 0.00 0.00
Invest AD - GCC Focus Fund $ 1014.50 - -0.71 - JPM H US STEEP A (acc)-USD (1) F $ 12.49 - -0.06 -
JB EF US Leading-USD/A $ 291.68 - -0.08 0.27
WA Euro Core Plus Bd A dis(D) € 93.34 - 0.03 1.48 Money Market (USD) P A F $ 10.29 - 0.00 0.00 Meridian Fund Managers Ltd
JPM Gbl Dyn A (dist)-USD (1) F $ 14.34 - -0.09 - US Growth Class B EUR € 107.79 - -0.01 0.00
JPM US Dyn A (acc)-EUR (1) € 7.07 - -0.01 - WA Euro High Yield A dis (D) € 98.82 - 0.06 7.54 Neuberger B.US Core(USD)P A $ 9.74 - 0.02 0.00 Other International Funds
JPM Gbl Dyn A (acc)-EUR (1) F € 7.06 - -0.02 - JB EF US Value-USD/A $ 122.08 - -0.06 0.40 US Growth Class C GBP £ 110.05 - 0.00 0.00
JPM US Dyn A (acc)-USD (1) F $ 10.94 - -0.05 - WA Gl Blue Chip Bd A dis(M) $ 109.67 - 0.17 1.82 Global Gold & Resources Fund $ 456.62 - 0.00 -
JB Ms Africa Opp.-EUR/B € 100.05 - -1.25 - Sands US Growth (USD) PA $ 10.98 - 0.06 -
JPM Gbl Dyn A (acc)-CHF (hdg) (1) FSFr 116.90 - -0.68 - US Growth Class D CHF SFr 110.05 - -0.01 0.00
JPM US Dyn A (dist)-USD (1) $ 15.08 - -0.07 - WA Gl Core Plus Bd A dis(D) $ 107.72 - 0.10 1.86 Global Energy & Resources Fund $ 100.03 - 0.00 -
JB Ms Global Sel. EUR/B € 96.52 - 0.14 0.00 Selective Gbl P A € 162.50 - -0.71 0.00
JPM Gbl Dyn A (acc)-EUR Hdg (1) F € 5.30 - -0.03 - US Growth Class I USD $ 100.68 - 0.00 -
JPM US Growth A (acc)-EUR Hdg (1) F € 7.39 - -0.04 - WA Gl Credit Abs Ret Fd A dis $ 102.54 - 0.05 0.00 Tactical Alpha (CHF)P A SFr 9.83 - -0.01 0.00
JPM Gbl Dyn A (acc)-SGD (Hdg) (1) F S$ 11.49 - -0.07 - JB Strategy Balanced-CHF/B SFr 132.54 - 0.00 0.00 Metage Capital Wealthy Nations Bond USD Cls A $ 117.14 - -0.03 4.77
JPM US Growth A (acc)-USD (1) F $ 12.83 - -0.07 - WA Gl Credit Cl.A dis (D) $ 107.77 - 0.27 2.11 Tactical Alpha (EUR)P A € 10.03 - -0.01 0.00 Other International Funds
JPM Gbl Dyn A (inc)-EUR (1) F € 7.17 - -0.02 - JB Strategy Balanced-EUR € 132.07 - 0.06 0.00 Wealthy Nations Bond EUR Cls B € 114.04 - -0.05 5.18
JPM US Growth A (dist)-GBP (1) F £ 6.13 - -0.02 - WA Global High Yield A dis(D) $ 86.34 - -0.27 6.51 Tactical Alpha (USD)P A $ 14.33 - -0.01 0.00 MGS $ 196.73 - -1.63 -
JPM Gbl Eq (USD) A (acc)-EUR (1) F € 76.04 - -0.07 - JB Strategy Balanced-USD/B $ 114.97 - -0.08 0.00 Wealthy Nations Bond GBP Cls C £ 116.22 - -0.03 4.90
Investec Asset Management Ireland Ltd (IRL) JPM US Growth A (dist)-USD (1) F $ 6.87 - -0.04 - WA Global Inf-Linked A dis(D) $ 107.20 - 0.36 2.99
JB Strategy Inc-CHF/B SFr 112.81 - -0.03 0.00 Technology P A € 9.94 - -0.01 0.00 MEMO $ 437.82 - -6.07 0.00
JP Morgan Admin Svs Ire Ltd, JP Morgan Hse, IFSC Dub 1 00 353 1 612 3363 JPM Gbl Eq (USD) A (acc)-USD (1) F $ 11.08 - -0.06 - Wealthy Nations Bond CHF Cls DSFr 112.95 - -0.04 -
FSA Recognised JPM US Select 130/30 A (acc)-EUR Hdg (1) F € 7.38 - -0.02 - WA Gl Multi Strategy A dis(D) $ 127.46 - -0.01 3.54 Technology P A $ 15.22 - -0.03 0.00 MEMV (Est) $ 100.96 - -0.82 -
JPM Gbl Eq (USD) A (acc)-EUR Hdg (1) F € 6.12 - -0.02 - JB Strategy Inc-EUR/B € 144.00 - 0.06 0.00 Wealthy Nations Bond EUR Cls D € 113.41 - -0.03 -
Investec Liquidity Funds Plc JPM US Select 130/30 A (acc)-USD (1) F $ 10.51 - -0.03 - WA Inflation Mgmt A dis(A) $ 119.82 - 0.44 1.45 Total Return Bond (EUR) P A € 12.27 - 0.01 0.00
JPM Gbl Eq (USD) A (dist)-USD (1) $ 21.44 - -0.10 - JB Strategy Inc-USD/B $ 136.36 - 0.00 0.00 Wealthy Nations Bond GBP Cls D £ 116.91 - -0.03 4.68
Euro Liquidity A Acc EUR * € 11.90 - 0.00 -
Mirabaud Gestion AM (FRA)
JPM US Select 130/30 A (dist)-GBP (1) F £ 6.91 - -0.01 - WA UK£ Core Plus Bond A dis (D) £ 109.76 - -0.18 2.08 Total Return Bond (USD) P A $ 17.95 - 0.01 0.00
JPM Gbl Eq (USD) A (dist)-EUR Hdg (1) F € 5.78 - -0.02 - JB Strategy Growth-CHF/B SFr 79.94 - 0.00 0.00 Regulated Wealthy Nations Bond CHF Cls E SFr 112.84 - -0.04 5.12
Euro Liquidity I Inc EUR * € 1.00 - 0.00 0.07 JPM US Select 130/30 A (dist)-USD (1) F $ 10.69 - -0.03 - WA UK£ Infl-Linked Plus A dis (D) £ 113.80 - -0.42 1.46 Vital Food Syst.Hdg PA SFr 10.10 - 0.00 -
JB Strategy Growth-EUR € 94.34 - 0.03 0.00 Mirabaud Euro Actions C € 130.39 - 1.51 0.00 Wealthy Nations Bond INR Hdg Cls D $ 113.80 - 0.14 -
JPM Gbl Focus A (acc)-EUR (1) F € 15.76 - -0.04 -
Short Dated Bd A Acc GBP * £ 13.06 - 0.01 - JPM US Sm Cap Grth A (acc)-EUR (1) F € 72.30 - -0.02 - WA UK£ Long Duration A dis (D) £ 113.42 - -0.10 2.01 Vital Food Syst.Hdg PA € 10.10 - 0.00 - Mirabaud France Act. C € 139.85 - 1.74 0.00 Wealthy Nations Bond INR Hdg I Cls D $ 114.23 - 0.15 -
JPM Gbl Focus A (acc)-CHF (hdg) (1) FSFr 135.61 - -0.79 -
Short Dated Bd I Acc GBP * £ 13.95 - 0.01 - JPM US Sm Cap Grth A (dist)-GBP (1) F £ 9.56 - -0.02 - WA US Adjustable Rate A cap $ 100.02 - 0.32 0.00 Vital Food Syst.Hdg PA $ 10.18 - 0.02 -
JPM Gbl Focus A (acc)-EUR Hgd (1) F € 8.35 - -0.05 - Wealthy Nations Bond NOK Cls DNKr 115.30 - -0.03 -
Sterling Liquidity A Acc GBP * £ 13.17 - 0.00 - JPM US Sm Cap Grth A (acc)-USD (1) F $ 14.70 - -0.06 - WA US Core Bond A dis(D) $ 100.93 - 0.26 1.85 William Blair Gbl Gth P A F $ 10.13 - 0.06 0.00
JPM Gbl Focus A (dist)-EUR (1) € 21.11 - -0.05 - Wealthy Nations Bond USD Cls D $ 114.21 - -0.03 -
Sterling Liquidity I Inc GBP * £ 1.00 - 0.00 0.31 JPM US Sm Cap Grth A (dist)-USD (1) $ 101.23 - -0.40 - WA US Core Plus Bond A dis(D) $ 111.98 - 0.23 1.72 William Blair Gbl Gth P A F € 10.47 - 0.00 0.00
JPM Gbl Real Estate Sec (USD) A (acc)-EUR Hdg (1) F € 6.05 - -0.06 - Wealthy Nations Bond USD CNY Hedged Class F $ 116.19 - -0.01 4.27
US$ Liquidity A Acc USD * $ 11.96 - 0.00 - JPM US Value A (dist)-GBP (1) F £ 14.50 - -0.08 - WA US High Yield A dis(D) $ 85.46 - -0.15 6.41 Wld Gold Expertise P A F SFr 29.47 - -0.17 0.00
JPM Gbl Real Estate Sec (USD) A (acc)-USD (1) F $ 9.24 - -0.09 - Wealthy Nations Bond SGD Class G S$ 164.88 - -0.05 4.66
US$ Liquidity I Inc USD * $ 1.00 - 0.00 0.18 JPM US Value A (acc)-USD (1) F $ 13.08 - -0.09 - WA US Short Term Govt A dis(D) $ 101.45 - 0.06 1.05 Wld Gold Expertise P A € 23.04 - -0.13 0.00
JPM Gbl Real Estate Sec (USD) A (inc)-EUR Hdg (1) F € 5.50 - -0.06 - Wealthy Nations Bond Class H S$ 109.10 - -0.03 4.97
JPM US Value A (dist)-USD (1) F $ 16.33 - -0.11 - Kairos Investment Management Ltd (CYM) Money Market Funds Wld Gold Expertise P A $ 29.81 - -0.21 0.00
Investec Global Strategy Fund (LUX) JPM Gbl Sel Eq A (acc)-USD (2) F $ 154.67 - -1.24 - Wealthy Nations Bond Class I $ 113.44 - -0.02 4.30
Regulated MitonOptimal Offshore (GSY)
JPM US Dyn 130/30 A (acc)-EUR Hdg (1) € 7.27 - -0.01 - WA US Money Market A dis(D) $ 1.00 - 0.00 0.03 Lombard Odier Funds II
49 Avenue JF Kennedy New Capital Alternative Strategies
JPM Gbl Sel Eq A (dist)-USD (2) F $ 104.94 - -0.85 - Kairos Multi Strategy E1 (Est) € 1619.81 - 5.79 0.00 www.MitonOptimal.com
L-1855 Luxembourg Enquiries 020 7597 1800 JPM US DYN 130/30 A (acc)-USD (1) F $ 10.36 - -0.02 - Balanced (EUR) P A F € 108.38 - 0.09 0.00
JPM Gbl Soc Resp A (acc)-USD (1) F $ 9.77 - -0.06 - Kairos Multi Strategy E2 (Est) € 1210.47 - 4.25 0.00 Legg Mason Luxembourg Funds (LUX) Regulated All Weather Fd USD Cls $ 111.02 - 0.74 -
FSA Recognised
JPM US DYN 130/30 A (dist)-GBP (1) F £ 8.12 - 0.00 - 145 Rue du Kiem, L-8030 Strassen Conservative (EUR) P A F € 105.46 - 0.04 0.00 Core Diversified Fund (USD) $ 109.16 - -0.41 0.00
Investec Global Strategy Fund JPM Gbl Soc Resp A (dist)-USD (1) F $ 5.82 - -0.03 - Kairos Multi Strategy E3 (Est) € 1175.28 - 4.04 0.00 All Weather Fd EUR Cls € 101.38 - 0.49 0.00
JPM US DYN 130/30 A (dist)-USD (1) F $ 128.45 - -0.22 - FSA Recognised LO Selection Core Diversified Fund (EUR) € 91.98 - -0.37 0.00
Africa Opps A Acc USD $ 19.05 - 0.06 0.43 Equity Sector Kairos Multi Strategy D1 (Est) $ 1730.00 - 6.24 0.00 All Weather Fd GBP Cls £ 108.14 - 0.67 0.00
Equity Asia Other classes available: Class C, Class I Balanced (CHF) P A F SFr 100.93 - 0.08 0.00
JF Europe Tech A (dist)-EUR (1) F € 5.18 - 0.05 - Core Diversified Fund (GBP) £ 100.29 - -0.40 0.00 Tactical Opps USD Cls $ 91.56 - -3.16 0.00
American Equity A Acc USD $ 15.77 - 0.13 - Kairos Multi Strategy D2 (Est) $ 1272.14 - 4.51 0.00 Equity Funds
JF ASEAN Equity A (acc)-SGD (1) F S$ 16.39 - 0.06 - Balanced (EUR) P A F € 109.63 - 0.09 0.00 Core Diversified USD E Class $ 99.50 - -0.49 -
American Equity A Inc USD $ 73.75 - 0.63 - JF Pacific Tech A (acc)-EUR (1) F € 12.15 - 0.11 - Tactical Opps EUR Cls € 75.79 - -2.61 0.00
JF Asia Al+ A (acc)-USD (1) $ 20.44 - 0.05 - LM Emerg. Markets Eq A Ord $ 296.95 - 0.12 0.00 Conservative (CHF) P A F SFr 101.19 - 0.04 0.00
JF Pacific Tech A (acc)-USD (1) F $ 14.89 - 0.20 - Core Diversified GBP E Class £ 98.98 - -0.43 - Tactical Opps GBP Cls £ 84.43 - -2.92 0.00
Asia Pacific Eq. A Acc USD $ 24.66 - 0.03 0.81
JF Asia P ExJapEq A (dist)-GBP (1) F £ 16.99 - 0.04 - LM Eurold Eq.A Euro Cap € 98.94 - 1.09 0.00 Conservative (EUR) P A F € 106.44 - 0.03 0.00
JF Pacific Tech A (dist)-USD (1) F $ 9.65 - 0.12 - Core Diversified SGD E Class S$ 98.74 - -0.43 -
Asia Pacific Eq. A Inc USD $ 24.41 - 0.04 0.86 Money Funds
JF Asia P ExJapEq A (acc)-USD (1) F $ 17.85 - 0.08 - Conservative (USD) P A F $ 101.80 - 0.18 0.00 Global Real Estate Fund $ 98.16 - -0.51 0.00
Asian Equity A Acc USD $ 18.85 - 0.01 0.44 JF Pacific Tech A (dist)-GBP (1) F £ 11.27 - 0.13 - LM Eurold Cash A Euro Cap € 136.01 - -0.01 0.00
JF Asia P ExJapEq A (dist)-USD (1) $ 45.05 - 0.19 - Global Allocation (GBP) P A F £ 8.63 - 0.00 0.00 International Diversified $ 99.17 - -0.14 0.00
Asian Equity A Inc USD $ 27.65 - 0.02 0.40 JF US Tech A (dist)-USD (1) F $ 2.00 - -0.01 - Asset Allocation Funds
JF Asia P ExJapEq A (acc)-SGD (1) F S$ 12.28 - 0.03 - Growth (CHF) P A F SFr 100.99 - 0.20 0.00 International Beta Equity $ 102.72 - -2.06 0.00
Continental European Equity A Inc USD $ 345.51 - 3.87 0.85 JPM Europe Tech A (acc)-EUR (1) F € 14.95 - 0.14 - LM M-Man.Bal A Cap Euro € 126.69 - 0.18 0.00
JF China A (acc)-USD (1) F $ 25.00 - -0.10 - Kames Capital ICVC (UK) Growth (EUR) P A F € 112.30 - 0.24 0.00 International Equity $ 100.44 - -0.64 0.00
Continental European Equity A Acc USD $ 14.45 - 0.16 0.82 JPM Europe Tech A (dist)-EUR (1) F € 9.62 - 0.10 - LM M-Man.Bal A Cap USD $ 121.01 - 0.11 0.00
JF China A (acc)-SGD (1) F S$ 10.19 - -0.05 - Kames House, 3 Lochside Crescent, Edinburgh, EH12 9SA
Managed Flexible US$ Fund $ 100.98 - -0.13 0.00
EAFE A Inc USD $ 14.87 - 0.10 0.40 JPM Europe Tech A (dist)-GBP (1) F £ 7.38 - 0.09 - 0800 45 44 22 www.kamescapital.com LM M-Man Cons A Cap Euro € 123.60 - 0.18 0.00 M & G Securities Ltd (UK)
JF China A (dist)-HKD (1) F HK$ 9.38 - -0.04 - Offshore Global (GBP) £ 91.55 - 0.43 0.00
Newton Fund Mgrs (CI) Ltd (1200)F (JER)
Emrg Mkts Blended Debt A Acc USD $ 22.46 - 0.04 5.10 JPM Gbl Cons Trends A (acc)-EUR (1) F € 13.08 - 0.02 - Authorised Funds Property & Other UK Unit Trusts
LM M-Man Cons A Cap USD $ 125.59 - -0.03 0.00 PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130
JF China A (dist)-USD (1) $ 40.36 - -0.16 - Offshore Global (USD) $ 84.78 - 0.34 0.00
JPM Gbl Cons Trends A (acc)-USD (1) F $ 16.57 - -0.04 - Ethical Cautious Managed A Acc £ 1.22 - 0.00 2.08 M&G Property Portfolio A Acc £ 0.80 0.84 0.00 3.00 FSA Recognised
Emrg Mkts Blended Debt A Inc USD $ 20.34 - 0.04 5.17 LM M-Man Perf A Cap Euro € 128.77 - 0.21 0.00
JF Greater China A (acc)-SGD (1) F S$ 12.85 - 0.04 - Offshore Special Situations (GBP) £ 133.30 - 1.31 0.00
JPM Gbl Nat Resources Fd (1) F S$ 16.97 - 0.01 - Ethical Cautious Managed A Inc £ 1.06 - 0.00 2.11 Newton Offshore Strategy Fund Ltd
Emrg Mkts Corp Debt A Acc USD $ 22.29 - 0.00 3.30 LM M-Man Perf A Cap USD $ 119.71 - 0.12 0.00
JF Greater China A (acc)-USD (1) F $ 20.90 - 0.07 - M & G (Guernsey) Ltd (GSY)
Ethical Corporate Bond A Acc £ 1.73 - 0.00 3.83 Offshore Special Situations (USD) $ 122.65 - 1.16 0.00 UK Equity £ 1.6644 - -0.0019 1.96
Emrg Mkts Corp Debt A Inc USD $ 20.35 - 0.00 - JPM Gbl Natural Res A (dist)-EUR (1) F € 15.57 - -0.04 - Regulated
JF Greater China A (dist)-HKD (1) FHK$ 10.99 - 0.04 - Legg Mason UK Funds (1200)F (UK) Offshore Special Situations (EUR) € 102.88 - 0.96 0.00 Global Equity £ 1.4035 - -0.0043 1.92
JPM Gbl Natural Res A (acc)-EUR (1) F € 18.07 - -0.05 - Ethical Corporate Bond A Inc £ 1.06 - 0.00 3.83 The M&G Offshore Fund Range
Emrg Mkts Curr A Acc USD $ 20.01 - 0.04 2.75
JF Greater China A (dist)-USD (1) F $ 25.84 - 0.09 - PO Box 10649, Chelmsford, CM99 2BD
Ethical Equity A Acc £ 1.15 - 0.00 1.65 American Fund 109.81 114.39 -0.02 - Offshore Special Situations (YEN) ¥ 10867.73 - 99.00 0.00 Global Balanced £ 1.1589 - -0.0021 2.16
Emrg Mkts Curr Alpha A Acc USD $ 19.39 - -0.03 - JPM Gbl Natural Res A (acc)-USD (1) F $ 14.35 - 0.02 - Dealing & Enquiries: 0844 620 0013
JF Hong Kong A (acc)-USD (1) F $ 17.05 - -0.07 - Rhodium USD $ 93.08 - -0.19 0.00 Global Balanced (Accumulation) £ 1.2709 - -0.0023 2.12
JPM H US STEEP A (acc)-EUR Hdg (1) F € 13.42 - -0.07 - High Yield Bond A Acc £ 1.03 - 0.00 5.38 www.leggmason.co.uk Corporate Bond 1257.59 1296.49 -1.66 3.34
Emrg Mkts Equity A Acc USD $ 16.98 - 0.07 -
JF Hong Kong A (dist)-HKD (1) F HK$ 10.05 - -0.04 - Authorised Inv Funds Rhodium GBP £ 90.90 - -0.20 0.00 Bridge £ 1.3524 - 0.0001 2.00
JPM US Tech A (acc)-EUR (1) F € 99.95 - -0.22 - High Yield Bond A Inc £ 0.54 - 0.00 5.38 Global Basics 2351.77 2449.76 5.94 0.13
Emrg Mkts Hard Curr Debt A Inc USD $ 23.12 - -0.02 2.61
JF Hong Kong A (dist)-USD (1) F $ 44.20 - -0.19 - Equity Funds Rhodium AUD A$ 94.81 - -0.19 0.00 Sterling Fixed Interest Class £ 0.8530 - -0.0011 4.05
JPM US Tech A (dist)-GBP (1) F £ 1.73 - -0.01 - Inflation Linked A Acc £ 1.17 - 0.00 - Global Leaders 2642.48 2752.58 -0.19 1.73
Emrg Mkts Local Curr Debt A Acc USD $ 27.99 - 0.10 6.54
JF India A (acc)-SGD (1) F S$ 12.50 - -0.13 - US Equity Income A Inc 110.30 - -0.30 2.43 Rhodium SGD S$ 89.85 - -0.21 0.00 Global Fixed Interest Class £ 1.0430 - -0.0004 4.46
JPM US Tech A (acc)-SGD (1) S$ 12.52 - -0.06 - Investment Grade Bond A Acc £ 1.37 - 0.00 3.71 High Yield Corporate Bond 973.98 1004.11 1.38 6.06
Emrg Mkts Local Curr Debt A Inc USD $ 19.94 - 0.07 6.65
JF India A (acc)-USD (1) F $ 23.18 - -0.20 - Rhodium THB THB 922.00 - -1.99 0.00 Diversified Assets £ 1.1228 - -0.0006 2.94
JPM US Tech A (acc)-USD (1) F $ 13.66 - -0.08 - Investment Grade Bond A Inc £ 1.08 - 0.00 3.71 Episode Macro Fund £ 94.15 98.07 0.21 -
Emrg Mkts Local Curr Dyn Debt A Acc USD $ 21.29 - 0.08 6.07
JF India A (dist)-GBP £ 69.39 - -0.73 - Special Situations USD E Class $ 99.35 - 0.87 - Special Situations £ 1.0525 - 0.0002 3.23
JPM US Tech A (dist)-USD (1) F $ 6.90 - -0.05 - Sterling Corporate Bond A Acc £ 0.61 - 0.00 4.05 Optimal Income Fund 131.21 136.67 -0.01 2.67
Emrg Mkts Local Curr Dyn Debt A Inc USD $ 19.34 - 0.06 6.10
JF India A (dist)-USD (1) $ 68.19 - -0.57 - Special Situations GBP E Class £ 100.07 - 0.91 -
Equity Africa Sterling Corporate Bond A Inc £ 0.29 - 0.00 4.04 Recovery Fund Limited 'A' Participating Shares £ 102.02 106.27 0.38 0.86
Emerging Markets Multi-Asset A Acc USD $ 21.32 - 0.07 -
JF Korea Eq A (acc)-USD (1) F $ 9.76 - 0.13 - Special Situations SGD E Class S$ 99.05 - 0.87 -
JPM Africa Eq A (acc)-EUR (1) F € 17.96 - -0.02 - Strategic Assets A Acc £ 0.96 - 0.00 1.10 Recovery Fund Limited 'I' Participating Shares £ 102.19 106.44 0.38 1.62
Emerging Markets Multi-Asset A Inc USD $ 21.16 - 0.08 -
JF Korea Eq A (acc)-EUR (1) F € 7.53 - 0.07 -
JPM Africa Eq A (acc)-USD (1) F $ 10.90 - 0.04 - Strategic Bond A Acc £ 1.65 - 0.00 2.70 Strategic Corporate Bond Fund 128.16 133.50 -0.13 3.20
Enhanced Gbl Energy A Acc USD $ 16.32 - 0.11 -
FINANCIAL TIMES THURSDAY NOVEMBER 1 2012 ★ 23

MANAGED FUNDS SERVICE Full fund performance data at

www.ft.com/funds
Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield

Pictet-Absl Rtn Glo Div-P EUR F € 118.84 - 0.01 0.00 Pictet-Japanese Equities Opp-P JPY F ¥ 4168.80 - 48.21 0.00 World Equity II B F $ 9.42 - 0.01 0.00 Renminbi Bond Fund YEN Class ¥ 17676.00 - 27.00 0.00 Yuki Mizuho Japan Excellent 100 ¥ 5386.00 - 61.00 0.00
Pictet-Absl Rtn Glo Div-Pdy EUR F € 115.22 - 0.01 0.29 Pictet-Japanese Equities Opp-I JPY F ¥ 4382.24 - 50.76 0.00 RIC - OMIGSA Renminbi Bond Fund EUR Class € 110.57 - 0.18 3.76 Yuki Mizuho Japan Growth ¥ 4864.00 - 50.00 0.00
Pictet-Absl Rtn Glo Div-R EUR F € 114.99 - 0.01 0.00 Pictet-Japanese Equities Opp-P dy JPY F ¥ 4134.81 - 47.83 0.00 Acadian Emerging Markets Eq Ucits A £ 20.26 - 0.10 0.00 Poland Geared Growth £ 0.67 - -0.05 0.00 Yuki Mizuho Japan Income ¥ 6306.00 - 62.00 0.00
Pictet-AbsRetGloDiv-HI CHF F SFr 179.00 - 0.01 0.00 Pictet-Japanese Equity Selection-I JPY F ¥ 6923.61 - 78.77 0.00 Acadian European Eq Ucits I € 8.86 - 0.04 2.65 Yuki Mizuho Japan Large Cap ¥ 3837.00 - 55.00 0.00
E. I. Sturdza Strategic Management Limited (GSY)
Pictet-AbsRetGloDiv-HI GBP F £ 104.12 - 0.01 0.00 Pictet-Japanese Equity Selection-P JPY F ¥ 6597.04 - 74.95 0.00 Acadian Gbl Eq Ucits A € 9.90 - -0.02 0.00 Yuki Mizuho Japan Low Price ¥ 9478.00 - 109.00 0.00
Regulated
Pictet-AbsRetGloDiv-HI JPY F ¥ 13722.00 - 1.00 0.00 Pictet-Japanese Eq Sel-Pdy GBP F £ 50.72 - 0.15 0.39 Emerg Markets EQ Ucits B $ 9.71 - 0.04 0.00 Nippon Growth Fund Limited ¥ 51536.00 - -190.00 0.00 Yuki Mizuho Japan Pure Gwth ¥ 5818.00 - 46.00 0.00
Nordea 1, SICAV (LUX) Polar Capital Funds Plc (IRL)
Global Aggreg.Bd Fd $ 18.46 - 0.04 0.32
UBS AG (LUX)
Pictet-AbsRetGloDiv-HI USD F $ 156.47 - 0.01 0.00 Pictet-Japanese Eq Sel-Pdy JPY F ¥ 6508.83 - 73.95 0.38 Strat Evarich Japan Fd Ltd JPY ¥ 53229.00 - -1227.00 0.00 Yuki Mizuho Japan Small Cap ¥ 6649.00 - 12.00 0.00
E-Mail: nordeafunds@nordea.lu, Phone: +352 43 39 50 0 Regulated 291, Route d'Arion P 91, L-2010 Luxembourg
FSA Recognised Pictet-AbsRetGloDiv-HP CHF F SFr 172.03 - 0.01 0.00 Pictet-LATAM Lc Ccy Dbt-Pdy GBP F £ 73.67 - -0.36 6.61 Global Bond B F $ 18.61 - 0.05 0.27 Strat Evarich Japan Fd Ltd USD $ 532.68 - -12.23 0.00 www.ubs.com/funds Yuki Mizuho Japan Value Select ¥ 4600.00 - 28.00 0.00
Asian Financials Fund Cls A USD $ 254.60 254.60 -1.63 0.62
Emerging Consumer Fund F € 15.50 - 0.05 0.00 Pictet-AbsRetGloDiv-HPdy GBP F £ 97.13 - 0.01 0.22 Pictet-LATAM Lc Ccy Dbt-I EUR F € 120.22 - -0.82 0.00 Global Credit Fund A F $ 12.98 - 0.03 0.46 FSA Recognised YMR Umbrella Fund
European Market Neutral Fund Cls I Euro € 9.36 9.36 0.00 - Strat Fd Ltd Gbl Opps Fd USD $ 2854.86 - 0.00 0.00
European Alpha Fund F € 8.10 - 0.01 0.00 Global Currency Fd A $ 12.04 - 0.02 0.21 UBS (CH) Equity Fund - Gold (USD) P $ 540.95 - 5.84 0.00 YMR N Growth ¥ 7662.00 - 90.00 0.00
Pictet-AbsRetGloDiv-HP USD F $ 150.38 - 0.01 0.00 Pictet-LATAM Lc Ccy Dbt-I USD F $ 154.71 - -0.17 0.00 Financials Income Fund Cls B2 GBP Acc £ 1.21 1.21 0.00 0.00 Strat Fd Ltd Gbl Opps Fd EUR € 2168.79 - 0.00 0.00
European Value Fund € 38.62 - -0.01 0.00 US Growth Equity A F $ 15.78 - 0.00 0.05 UBS (CH) Equity Fund - Energy (USD) P $ 305.44 - -0.10 0.14 Yuki Chugoku Umbrella Fund
Pictet-Agriculture-I EUR F € 148.24 - 0.00 0.00 Pictet-LATAM Lc Ccy Dbt-P EUR F € 116.52 - -0.80 0.00 Financial Opps I USD $ 9.53 - 0.02 0.00 Strat Global Innovation fd Ltd EUR € 1170.70 - 6.47 0.00
Far Eastern Equity Fund $ 17.86 - 0.12 0.00 Value Global Equity F $ 20.75 - 0.02 0.20 UBS Global Emerging Market Value Focus P USD $ 108.51 - 1.04 0.00 Yuki Chugoku Japan General ¥ 5855.00 - 51.00 0.00
Pictet-Agriculture-I USD F $ 191.39 - -0.30 0.00 Pictet-LATAM Lc Ccy Dbt-P USD F $ 149.94 - -0.18 0.00 GEM Growth I USD $ 9.64 - 0.01 0.00 Strat Global Innovation fd Ltd USD $ 1201.67 - 6.65 0.00
Latin American Equity Fund € 11.54 - -0.13 0.00 UBS (Lux) Bond Fund - Convert Europe P-acc € 131.08 - 0.11 0.00 Yuki Chugoku Japan Low Price ¥ 5513.00 - 60.00 0.00
Pictet-Agriculture-P EUR F € 144.07 - -0.02 0.00 Pictet-LATAM Lc Ccy Dbt-Pdy USD F $ 114.65 - -0.14 6.44 GEM Income I USD $ 10.73 - 0.04 0.00
Russell Investment Company II PLC (IRL) E.I. Sturdza Funds PLC (IRL) UBS (Lux) Bond Fund - Euro High Yield P-acc € 149.57 - 0.15 0.00
Nordic Equity Fund € 53.31 - 0.09 0.00 Pictet-Agriculture-P dy EUR F € 144.07 - -0.02 0.00 Pictet-LATAM Lc Ccy Dbt-R EUR F € 113.36 - -0.78 0.00 Yuki 77 Umbrella Fund
Global Alpha I USD $ - - - - Russell Investment Group, 10 Regent St, Ldn SW1Y 4PE 020 7024 6000 Regulated
North American Growth Fund H $ 8.68 - 0.00 0.00 FSA Recognised UBS (Lux) Bond Fund - Full Cycle Asian Bond (USD) P-acc $ 121.51 - -0.11 0.00 Yuki 77 General ¥ 4610.00 - 54.00 0.00
Pictet-Agriculture-P dy GBP F £ 115.79 - 0.21 0.00 Pictet-LATAM Lc Ccy Dbt-R USD F $ 145.92 - -0.17 0.00 Global Insurance I GBP £ 2.46 - -0.01 0.00 Strategic China Panda Fund USD $ 1795.28 - 2.46 0.00
North American Value Fund $ 30.33 - -0.27 0.00 Euro Fixed Inc I ACC F £ 20.05 - 0.11 0.00 UBS (Lux) Bond SICAV - Asian Local Currency Bond (USD) P-acc $ 103.61 - 0.06 0.00 Yuki Hokuyo Umbrella Fund
Pictet-Agriculture-P dy USD F $ 186.01 - -0.30 0.00 Pictet-Pacific Ex Japan Index-P USD F $ 329.68 - 2.10 0.00 Global Technology I USD $ 14.67 - -0.04 0.00 Strategic China Panda Fund Hedged EURO € 1761.01 - 2.48 0.00
European High Yield Bond Fund F € 23.23 - 0.06 0.00 Pan European Eq I F £ 14.88 - 0.14 0.00 UBS (Lux) Bond SICAV - Convert Global (EUR) P-acc € 10.53 - 0.01 0.00 Yuki Hokuyo Japan General ¥ 3607.00 - 43.00 0.00
Pictet-Agriculture-R EUR F € 140.67 - -0.02 0.00 Pictet-Pacific Ex Japan Index-I USD F $ 333.53 - 2.13 0.00 Healthcare Opps I USD $ 17.76 - -0.11 0.00 Strategic China Panda Fund Hedged Sterling £ 1702.46 - 2.50 0.00
Global Stable Equity Fund F € 10.16 - 0.00 0.00 UK Equity Plus B F £ 121.80 - 0.48 0.00 UBS (Lux) Bond SICAV - Short Duration High Yield (USD) P-acc $ 107.38 - 0.01 0.00 Yuki Hokuyo Japan Income ¥ 4321.00 - 29.00 0.00
Pictet-Agriculture-R USD F $ 181.61 - -0.32 0.00 Pictet-Pacific Ex Japan Index-IS USD F $ 332.98 - 2.12 0.00 Japan Alpha I JPY ¥ - - - - Strategic US Momentum and Value Fund $ 543.91 - -0.12 -
Heracles Long/Short MI Fund - AP - EUR F € 50.02 - 0.12 0.00 US Growth I Acc F £ 10.87 - 0.01 0.00 UBS (Lux) Bond SICAV - USD High Yield P-acc $ 226.08 - 0.05 0.00 Yuki Hokuyo Japan Small Cap Fund ¥ 4959.00 - 12.00 0.00
Pictet-Agriculture-P USD F $ 186.01 - -0.31 0.00 Pictet-Pacific Ex Japan Index-P dy USD F $ 270.34 - 1.72 3.41 Japan I JPY ¥ 1027.12 - 7.69 0.00 Nippon Growth (UCITS) Fund JPY Class A shares ¥ 50098.00 - -991.00 0.00
US Quant B F $ 13.85 - 0.00 0.00 UBS (Lux) Emerging Economies Fund - Global Bonds (USD) P-acc $ 1864.57 - 2.50 0.00 Yuki Asia Umbrella Fund
Pictet-Asian Equities Ex Japan-I USD F $ 179.49 - 1.35 0.00 Pictet-Pacific Ex Japan Index-R USD F $ 320.94 - 2.04 0.00 North American I USD $ 11.41 11.41 -0.01 - Nippon Growth (UCITS) Fund JPY Class C Dis shares ¥ 40897.00 - -809.00 0.00
World Equity B $ 16.16 - 0.04 0.00 UBS (Lux) Emerging Economies Fund - Global Short Term (USD) P-acc $ 2959.26 - 7.63 0.00 Yuki Japan Rebounding Growth Fund ¥ 8103.00 - 88.00 0.00
Pictet-Asian Equities Ex Japan-P USD F $ 166.85 - 1.24 0.00 Pictet-Pacific Ex Japan Index-R dy GBP F £ 183.19 - 0.58 3.20 UK ARF I GBP £ 9.76 - -0.01 0.00 Nippon Growth (UCITS) Fund JPY Class B Acc shares ¥ 42237.00 - -836.00 0.00
World Equity I F £ 18.06 - 0.06 0.00 UBS (Lux) Equity Fund - Asian Consumption (USD) P-acc $ 104.92 - 0.36 0.00
Pictet-Asian Equities Ex Japan-P dy USD F $ 163.45 - 1.22 0.15 Pictet-Premium Brands-I EUR F € 108.90 - 0.41 0.00 Zadig Gestion (Memnon Fund) (LUX)
Strategic Euro Bond Fund Distributing Class Shares € 1049.76 - 0.41 2.49
Pictet-Asian Equities Ex Japan-HI EUR F € 117.24 - 0.88 0.00 Pictet-Premium Brands-I USD F $ 140.60 - 0.31 0.00 Polar Capital LLP (CYM) World Equity SH-B F £ 110.04 - 0.17 0.00 UBS (Lux) Equity Fund - Greater China (USD) P-acc $ 185.32 - 2.19 0.00 FSA Recognised
Regulated Strategic Euro Bond Fund Accumulating Class Shares € 1126.81 - 0.44 0.00
UBS (Lux) Equity Fund - Health Care (USD) P-acc $ 135.74 - -0.85 0.00 Memnon European Fund I GBP £ 97.16 - 0.54 0.00
Pictet-Asian Local Currency Debt-I EUR F € 123.22 - -0.32 0.00 Pictet-Premium Brands-P EUR € 99.25 - 0.37 0.00
ALVA Convertible A USD $ 110.63 - 0.05 0.00 SVG Investment Managers Limited Strategic Emerging Europe Fund Hedged Euro Class € 998.60 - -20.39 0.00
UBS (Lux) Equity SICAV - Russia (USD) P-acc $ 104.78 - -0.17 0.00
Pictet-Asian Local Currency Debt-I USD F $ 160.26 - 0.22 0.00 Pictet-Premium Brands-P USD F $ 128.14 - 0.29 0.00 Other International
Northwest Investment Management (HK) Ltd European Market Neutral Fund A EUR € 97.44 - -1.63 0.00 Strategic Emerging Europe Fund USD Class $ 1010.94 - -19.75 0.00 Zebedee Capital Partners LLP (CYM)
UBS (Lux) Equity SICAV - USA Growth (USD) P-acc $ 16.79 - 0.03 0.00
Pictet-Asian Local Currency Debt-P EUR F € 118.23 - -0.31 0.00 Pictet-Premium Brands-P dy EUR F € 99.19 - 0.37 0.00 SVG UK Focus Fd Cls I £ 17.59 17.59 -0.02 2.47 Regulated
11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373 European Conviction A EUR € 150.69 - -1.06 0.00 Strategic Europe Value Euro Class € 114.73 - -0.17 0.00
UBS (Lux) Key Selection SICAV - Global Allocation Focus Europe (EUR) P-acc € 9.58 - 0.03 0.00 Zebedee Focus Fund Limited Class A EURO Shares € 170.74 - 5.65 0.00
Other International Funds Pictet-Asn Lcl Ccy Dbt-Pdy USD F $ 134.96 - 0.18 2.67 Pictet-Premium Brands-P dy GBP F £ 79.72 - 0.44 0.00 SVG UK Focus Fd Cls A £ 17.10 17.10 -0.02 2.02
European Forager A EUR € 165.24 - 14.08 0.00
Northwest $ class $ 1758.88 - -19.48 0.00 UBS (Lux) SICAV 1 - All Rounder (USD) P-acc $ 139.62 - 0.09 0.00 Zebedee Focus Fund Limited Class B USD Shares $ 198.49 - 7.01 0.00
Pictet-Asn Lcl Ccy Dbt-Pdy GBP F £ 85.01 - -0.15 2.71 Pictet-Russian Equities-P USD F $ 61.76 - -0.21 0.00
Northwest China Opps $ class $ 2298.70 - -37.74 0.00 Pictet-Biotech-P USD $ 356.47 - -4.23 0.00 Pictet-Russian Equities-P dy GBP F £ 38.38 - -0.27 0.00 Policy Selection Limited SW Mitchell Capital LLP (CYM) Pls contact your adviser for funds in other currencies or for add.
Zebedee Focus Fund Limited Class A USD $ 171.20 - 5.79 0.00
Regulated
Other International Funds
Northwest China Opps € class € 2250.10 - -35.59 0.00 Pictet-Biotech-P dy GBP F £ 221.32 - -2.04 0.00 Pictet-Russian Equities-I EUR F € 49.55 - -0.45 0.00
S W Mitchell Class A Shares Euro € 231.19 - 0.75 0.00 UOB Global Strategies Funds Plc (IRL)
Northwest Warrant $ class $ 518.55 - 66.62 0.00 Assured USD A $ 120.54 - 0.48 0.00 Regulated
Pictet-Biotech-HP EUR F € 264.75 - -3.14 0.00 Pictet-Russian Equities-I USD F $ 64.29 - -0.22 0.00 S W Mitchell Class B Shares USD $ 230.00 - 0.82 0.00
Assured USD B $ 106.25 - 0.32 0.00 UOB Asian Equity $ 204.71 - -0.50 0.00
Pictet-Biotech-I USD F $ 389.83 - -4.59 0.00 Pictet-Russian Equities-P EUR F € 47.59 - -0.43 0.00
Assured USD C $ 114.69 - 0.42 0.00 Tarchon Capital Management (CYM) UOB Greater China $ 215.36 - 0.09 0.00 Data Provided by Morningstar
Pictet-Biotech-P dy USD F $ 356.29 - -4.23 0.00 Pictet-Russian Equities-P dy USD F $ 61.72 - -0.21 0.00
Assured USD D $ 107.99 - 0.36 0.00 Regulated UOB Paradigm Fund Class A (Eur) € 146.91 - -0.29 0.00
Pictet-CHF Liquidity-P F SFr 124.32 - 0.00 0.00 Pictet-Security-I EUR F € 102.46 - -0.43 0.00
Assured F USD $ 73.06 - 0.14 0.00 Tarchon Multistrategy (A2) € 129.95 - -0.80 0.00 UOB Paradigm Fund Class B (USD) $ 185.20 - -0.40 0.00
Pictet-Clean Energy-I EUR F € 49.26 - 0.24 0.00 Pictet-Security-I USD F $ 132.29 - -0.76 0.00
Assured GBP B £ 97.81 - 0.51 0.00 Tarchon MS (2x) (A4X) € 125.04 - 1.03 0.00 UOB Paradigm Fund Class C $ 119.34 - -0.26 0.00
Pictet-Clean Energy-I USD F $ 63.61 - 0.21 0.00 Pictet-Security-P EUR F € 97.46 - -0.41 0.00
Pictet-Clean Energy-P EUR F € 47.07 - 0.22 0.00 Pictet-Security-P USD F $ 125.83 - -0.73 0.00
Assured GBP C £ 92.79 - 0.53 0.00 Tarchon MS (2x) (A4W) £ 106.75 - 0.91 0.00 UOB Paradigm Fund Class D $ 116.66 - -0.25 0.00 www.morningstar.co.uk
Oasis Crescent Management Company Ltd Assured EUR D € 85.22 - 2.69 0.00 Tarchon Asia € 94.38 - -2.04 0.00 UOB US Equity Fund $ 157.17 - -0.03 0.00
Pictet-Clean Energy-P USD F $ 60.77 - 0.19 0.00 Pictet-Security-P dy USD F $ 125.83 - -0.73 0.00 SAM (LUX) Data as shown is for information purposes only. No
Other International Funds Tarchon Equity EUR € 147.45 - 1.89 0.00
Assured EUR B € 78.17 - 2.42 0.00 Tel. +41 44 653 10 10 www.sam-group.com UOB Global Opportunities Fund $ 107.57 - -0.03 0.00 offer is made by Morningstar or this publication.
Pictet-Clean Energy-P dy USD F $ 60.77 - 0.19 0.00 Pictet-Security-P dy GBP F £ 78.33 - -0.19 0.00
Oasis Crescent Equity Fund R 7.39 - 0.02 0.50 Regulated
Assured CHF E SFr 58.35 - 1.87 0.00 UOB Strategic Allocation Fund USD $ 102.05 - -0.03 0.00
Pictet-Clean Energy-P dy GBP F £ 37.83 - 0.25 0.00 Pictet-Security-R EUR F € 93.45 - -0.40 0.00 SAM Smart Energy Fund GBP/A £ 12.58 - -0.07 0.77 The Hartford International Funds (IRL)
Oasis Global Mgmt Co (Ireland) Ltd (IRL) Pictet-Convertible Bonds-I EUR F € 94.61 - -0.16 0.00 Pictet-Security-R USD F $ 120.65 - -0.71 0.00 Regulated
Unicapital Investments
Polunin Capital Partners Ltd SAM Smart Materials Fund GBP/A £ 99.83 - -0.35 0.45 (LUX)
Regulated Gbl Govt Bond (Ex Japan) Index (GBP) £ 1519.17 - -0.92 0.00
Pictet-Convertible Bonds-P EUR F € 92.40 - -0.16 0.00 Pictet-Small Cap Europe-I EUR F € 644.28 - 2.97 0.00 Other International Funds Regulated
Oasis Global Investment (Ireland) Plc SAM Sust. Climate Fund GBP/A £ 59.59 - 0.27 0.58
UK Corporate Bond £ 1352.43 - -2.23 0.00 Investments II € 71.93 - -19.64 0.00
Pictet-Convertible Bonds-P dy EUR F € 92.20 - -0.17 0.50 Pictet-Small Cap Europe-P EUR F € 603.74 - 2.77 0.00 Developing Countries 'A' $ 32.50 - -0.95 0.00
Oasis Global Equity $ 20.63 - 0.00 0.96 SAM Sust. Global Active Fd EUR/B € 116.69 - -0.17 0.00
Gilt £ 1454.34 - -3.55 0.00
Guide to Data
Pictet-Convertible Bonds-R EUR F € 90.20 - -0.17 0.00 Pictet-Small Cap Europe-P dy EUR F € 595.77 - 2.74 0.12 Emerging Markets Active $ 25.68 - 0.74 - Investments III € 146.01 - -3.06 0.00 The fund prices quoted on these pages are
Oasis Crescent Global Investment Fund (Ireland) plc SAM Sust. Healthy Liv Fd EUR/B € 106.63 - -0.51 0.00 supplied by the operator of the relevant fund.
Global Eq (Ex Japan) Index Fund ¥ 0.95 - 0.00 0.00 Investments IV - European Private Eq. € 440.65 462.68 -30.22 -
Pictet-Digital Communication-I EUR F € 123.13 - 0.95 0.00 Pictet-ST.MoneyMkt-I € 140.21 - 0.00 0.00 Luxcellence Em Mkts Tech $ 712.72 - -39.40 0.00 SAM Sust. Water Fund GBP/A £ 117.53 - 0.21 0.59 Details of funds published on these pages,
Oasis Crescent Global Equity Fund $ 20.85 - 0.00 0.84
Global Eq (ex Japan) Class HJ4 ¥ 0.99 - 0.00 0.00 Investments IV - Global Private Eq. € 675.99 709.79 -40.17 - including prices, are for the purpose of
Pictet-Digital Communication-I USD F $ 158.97 - 0.97 0.00 Pictet-ST.MoneyMkt-ICHF SFr 125.32 - 0.01 0.00 Em Mkts Strategy Developing $ 705.98 - -1.58 0.00
OasisCresGl Income Class A $ 10.89 - 0.00 2.61 information only and should only be used as a
Global Eq (ex Japan) Class JP5 ¥ 0.75 - 0.00 0.00 guide. The Financial Times Limited makes no
Pictet-Digital Communication-P EUR F € 112.16 - 0.85 0.00 Pictet-ST.MoneyMkt-P € 137.83 - 0.00 0.00 Em Mkts Strategy Small Cap $ 999.13 - -23.24 0.00
OasisCresGl LowBal D ($) Dist $ 10.37 - 0.00 0.00 Value Partners Hong Kong Limited (IRL) representation as to their accuracy or
Global Eq Ex Japan Index Fund (Hedge) ¥ 0.69 - 0.00 0.00
Pictet-Digital Communication-P USD $ 144.81 - 0.88 0.00 Pictet-ST.MoneyMkt-PCHF SFr 92.20 - 0.00 1.03 Polunin Discovery Funds - Frontier Markets Fund $ 1042.38 - 9.39 - www.valuepartners.com.hk / vpl@vp.com.hk completeness and they should not be relied
OasisCresGl Med Eq Bal A ($) Dist $ 10.16 - 0.01 -
Gbl Govt Bond (Ex Japan) Index ¥ 0.87 - 0.00 0.00 Regulated upon when making an investment decision.
Oasis Crescent Gbl Property Eqty $ 8.12 - 0.00 3.22 Pictet-Digital Communication-P dy USD F $ 139.67 - 0.85 0.00 Pictet-ST.MoneyMkt-IUSD $ 134.14 - 0.00 0.00 The sale of interests in the funds listed on
Private Fund Mgrs (Guernsey) Ltd (GSY) Gbl Govt Bond (ex Japan) Class JP4 ¥ 0.86 - 0.00 0.00 VP Absolute Greater China Classic Fund $ 10.32 - -0.01 - these pages may, in certain jurisdictions, be
Pictet-Digital Communication-P dy GBP F £ 87.99 - 0.84 0.00 Pictet-ST.MoneyMkt-PUSD $ 132.04 - 0.00 0.00 Regulated
Japan Equity Index Fund ¥ 0.49 - 0.01 0.00 restricted by law and the funds will not
Pictet-Digital Communication-R EUR F € 103.52 - 0.78 0.00 Pictet-ST.MoneyMkt-Pdy $ 84.73 - 0.00 0.58 Monument Growth £ 354.72 358.88 2.05 0.89 Veritas Asset Management (UK) Limited (IRL) necessarily be available to persons in all
Schroder Property Managers (Jersey) Ltd Japan Equity Class JP3 ¥ 0.59 - 0.01 0.00 HSSI Ltd, 1 Grand Canal Sq, Grand Canal Harbour, Dublin 2, Ireland
jurisdictions in which the publication circulates.
Pictet-Eastern Europe-I EUR F € 354.92 - -0.59 0.00 Pictet-ST.MoneyMkt-Pdy € 96.26 - 0.01 1.18 Persons in any doubt should take appropriate
Prosperity Capital Management Ltd (CYM) Other International Funds Veritas Funds Plc professional advice. Data collated by
Pictet-Eastern Europe-P EUR F € 341.80 - -0.57 0.00 Pictet-Timber-HP EUR F € 80.73 - -0.04 0.00 The National Investor (TNI)
Regulated Indirect Real Estate SIRE £ 101.33 105.55 -0.80 4.13 www.veritas-asset.com Morningstar. For other queries contact
Pictet-Eastern Europe-P dy EUR F € 341.49 - -0.58 0.00 Pictet-Timber-I USD F $ 127.10 - -0.04 0.00 www.tni.ae +353 1 635 6799 reader.enquiries@ft.com +44 (0)207 873
RPF A Shares $ 234.06 - 2.53 0.00
Other International Funds 4211.
Pictet-Eastern Europe-P dy GBP F £ 275.57 - 0.09 0.00 Pictet-Timber-I EUR F € 98.44 - 0.11 0.00 Schroder Inv Mgmt (Guernsey) Ltd (GSY) FSA Recognised The fund prices published in this edition
RPF D $ 13.94 - 0.14 0.00
Odey Asset Management LLP (CYM) PO Box 255, St Peter Port, Guernsey 01481 745 001 UAE Blue Chip Fund AED 5.17 - 0.03 0.00 Institutional along with additional information are also
Pictet-Em Lcl Ccy Dbt-HI EUR F € 133.72 - 0.54 0.00 Pictet-Timber-P USD F $ 122.84 - -0.05 0.00 PQF A Shares $ 559.10 - 4.74 0.00
Regulated FSA Recognised available on the Financial Times website,
TNI Funds Ltd (BMU) Veritas Asian Fund A USD H $ 242.45 - 1.54 1.19
Pictet-Em Lcl Ccy Dbt-HP EUR F € 128.37 - 0.53 0.00 Pictet-Timber-P EUR F € 95.14 - 0.10 0.00 PQF B Shares $ 508.02 - 4.31 0.00
www.ft.com/funds. The funds published on
OEI MAC Inc A £ 304.78 - 5.40 0.00 Offshore Cash £ 1.7881500 1.7881500 0.0000100 0.00 MENA Special Sits Fund $ 1040.85 - 4.41 0.00 Veritas Asian Fund A GBP H £ 281.59 - 0.90 1.21 these pages are grouped together by fund
Pictet-Em Lcl Ccy Dbt-I EUR F € 156.39 - -0.23 0.00 Pictet-Timber-P dy USD F $ 117.40 - -0.04 0.79 PCF $ 432.71 436.62 -2.35 0.00 management company.
OEI Mac Inc B £ 167.90 - 3.12 0.00 Offshore Cash B F £ 1.8005600 1.8005600 0.0000200 0.00 TNI Funds Plc (Ireland) Veritas Asian Fund A EUR H € 216.99 - 0.37 1.23 Prices are in pence unless otherwise
Pictet-Em Lcl Ccy Dbt-I USD F $ 202.96 - 0.84 0.00 Pictet-Timber-P dy GBP F £ 73.08 - 0.22 0.82 CAPF $ 8.14 - 0.06 0.00
OEI MAC Inc USD $ 1683.17 - 29.81 0.00 MENA UCITS Fund $ 1031.60 - 5.07 0.00 indicated. The change, if shown, is the change
Veritas China Fund A USD $ 101.55 - 0.96 0.68
Pictet-Em Lcl Ccy Dbt-P EUR F € 150.07 - -0.23 0.00 Pictet-US Equity Growth Selection-I USD F $ 127.81 - 0.00 0.00 on the previously quoted figure (not all funds
Odey European Inc EUR € 672.93 - 11.06 0.00 update prices daily). Those designated $ with
Pictet-Em Lcl Ccy Dbt-P USD F $ 194.76 - 0.80 0.00 Pictet-US Equity Growth Selection-P USD F $ 122.81 - -0.01 0.00 Prusik Investment Management LLP (IRL)
The Nile Growth Company (LUX)
Veritas China Fund A GBP £ 103.14 - 0.97 0.00
no prefix refer to US dollars. Yield percentage
Odey European Inc A GBP £ 255.41 - 4.25 0.00 Enquiries - 0207 493 1331 Veritas China Fund A EUR € 101.09 - 0.95 0.48 figures (in Tuesday to Saturday papers) allow
Pictet-Em Lcl Ccy Dbt-Pdy USD F $ 148.15 - 0.61 5.37 Pictet-US Eq Gr Sel-Pdy USD F $ 122.81 - 0.00 0.00 Regulated
Odey European Inc B GBP £ 144.94 - 2.42 0.00 Regulated for buying expenses. Prices of certain older
Nile Growth Fd A dis $ 30.44 - 0.42 0.00 Veritas Global Equity Income Fund D USD $ 126.97 - 0.60 - insurance linked plans might be subject to
Pictet-Em Lcl Ccy Dbt-Pdy GBP F £ 94.82 - 0.04 5.44 Pictet-US Equity Growth Selection-R USD F $ 118.98 - -0.01 0.00 Prusik Asian Equity Income B Dist $ 122.74 - 0.62 5.50
Odey European Inc USD $ 314.28 - 5.23 0.00 Veritas Global Equity Income Fund D EUR € 189.11 - 0.02 - capital gains tax on sales.
Pictet-Emerging Markets-I USD F $ 524.06 - 0.51 0.00 Pictet-US High Yield-HI CHF F SFr 134.70 - -0.19 0.00 Prusik Asia A $ 161.44 - 1.33 0.00 Traditional Funds (IRL) Guide to pricing of Authorised Investment
Giano Capital EUR Inc € 4009.35 - 53.09 0.00 Veritas Global Equity Income Fund D GBP £ 153.31 - 0.24 - Funds (compiled with the assistance of the
Pictet-Emerging Markets-P USD $ 493.44 - 0.47 0.00 Pictet-US High Yield-HI EUR F € 90.67 - -0.13 0.00 Prusik Asian Smaller Cos A $ 145.11 - 1.05 0.00 SEB Asset Management S.A. (LUX) State Street International (Ireland) Limited. No. 78 Sir John Rogerson?s Quay, Dublin 2, Ireland
IMA. The Investment Management Association,
www.seb.se +352 26 68 2595 Phone:+353 1 242 5529 Fax:+353 1 438 9528 Email:TRCInvestorServices@statestreet.com Veritas Global Focus Fund D USD $ 19.92 - 0.12 -
Odey Asset Management LLP (IRL) Pictet-Emerging Markets-P EUR F € 379.39 - -1.16 0.00 Pictet-US High Yield-HP CHF F SFr 132.38 - -0.19 0.00 65 Kingsway, London WC2B 6TD. Tel: +44
Purisima Investment Fds (CI) Ltd (JER) Regulated FSA Recognised Veritas Global Focus Fund D EUR € 15.41 - -0.04 - (0)20 7831 0898.)
FSA Recognised Pictet-Emerging Markets-P dy USD F $ 488.37 - 0.47 0.00 Pictet-US High Yield-HP EUR F € 89.11 - -0.12 0.00
BSI Bond Opportunity Fund Eur Acc € 10.18 - 0.00 0.00 OEIC: Open­Ended Investment Company.
Odey OEAF EUR A Class € 98.54 - -0.06 0.00 Regulated SEB Ethical Europe Fund € 2.20 2.22 -0.01 0.00 Veritas Global Focus Fund D GBP £ 20.95 - 0.11 - Similar to a unit trust but using a company
Pictet-Emerging Markets Index-I USD F $ 243.71 - 0.73 0.00 Pictet-US High Yield-I USD F $ 135.51 - -0.19 0.00
PCG B 122.53 - 0.47 - SEB Europe Fund € 3.23 3.26 -0.02 0.00 BSI Bond Opportuinty Fund USD Acc $ 10.16 - -0.01 0.00 rather than a trust structure.
Odey OEAF GBP D Class £ 113.75 - 0.44 - Veritas Global Focus Fund A GBP £ 20.25 - 0.10 1.48 Different share classes are issued to reflect
Pictet-Emerging Markets Index-IS USD F $ 242.51 - 0.71 0.00 Pictet-US High Yield-P USD F $ 133.15 - -0.19 0.00
PCG C 121.04 - 0.48 - SEB European Equity Small Cap € 137.27 138.64 0.23 0.94 BSI Bond Opportunity Fund CHF AccSFr 9.90 - 0.00 0.00 a different currency, charging structure or type
Odey Pan European € 224.89 - 0.75 0.00 Veritas Global Focus Fund A EUR € 8.98 - -0.03 1.56
Pictet-Emerging Markets Index-P dy USD F $ 220.00 - 0.65 1.66 Pictet-US High Yield-P dy USD F $ 119.77 - -0.17 5.35 of holder.
SEB Asset Selection Fund EUR € 13.34 14.01 0.01 0.00 Credit Select A EUR Dis € 10.14 - -0.01 1.18
Odey Pan European GBP D £ 145.70 - 1.15 0.00 Putnam Investments (Ireland) Ltd (IRL) Veritas Global Focus Fund A USD $ 19.20 - 0.11 1.49 Selling price:Also called bid price. The price
Pictet-Emerging Markets Index-R USD F $ 230.89 - 0.69 0.00 Pictet-US High Yield-R USD F $ 131.19 - -0.19 0.00 at which units in a unit trust are sold by
Regulated SEB Russia Fund € 9.34 9.43 0.03 0.00 Credit Select A EUR Acc € 10.83 - 0.00 0.00
Odey Allegra STG A £ 92.58 - 0.63 0.00 Veritas Global Focus Fund C GBP £ 21.01 - 0.11 0.00 investors.
Pictet-Emerging Markets Index-P USD $ 238.32 - 0.71 0.00 Pictet-USA Index-P USD $ 118.37 - -0.09 0.00
Putnam New Flag Euro High Yield Plc - E € 989.55 - -0.18 5.60 SEB Eastern Europe ex Russia € 2.68 2.70 -0.02 0.00 European Absolute Return Fund Class A Old Euro Acc € 20.17 - 0.11 0.00 Buying price: Also called offer price. The
Odey Allegra USD $ 111.44 - 0.64 0.00 Veritas Global Focus Fund C EUR € 15.52 - -0.04 0.00
Pictet-Emerging Markets Index-R dy GBP F £ 140.24 - -0.09 1.41 Pictet-USA Index-I USD F $ 119.79 - -0.09 0.00 price at which units in a unit trust are bought
Putnam New Flag Euro High Yield Plc - M € 899.37 - -0.24 4.98 SEB Eastern Europe Small Cap Fund € 2.48 2.51 0.01 0.00 European Absolute Return Cls A New Euro Acc € 10.99 - 0.06 0.00
Odey Allegra European EUR € 157.44 - -0.10 0.00 Veritas Global Focus Fund C USD $ 20.00 - 0.12 0.00 by investors. Includes manager’s initial charge.
Pictet-EUR Bonds-HI CHF F SFr 630.25 - 0.09 0.00 Pictet-USA Index-IS USD F $ 120.42 - -0.69 0.00 Single price: Based on a mid­market
SEB Key Hedge Fund € 100.36 - -0.06 0.00 High Income USD Dis $ 9.19 - 0.00 8.30
Odey Allegra European EUR I F € 154.10 - -0.10 0.00 Veritas Global Equity Income Fund A GBP £ 148.09 - 0.23 4.51
Pictet-EUR Bonds-HP CHF F SFr 605.47 - 0.08 0.00 Pictet-USA Index-P dy USD F $ 111.96 - -0.09 0.82 R & H Fund Services (Jersey) Ltd (JER) valuation of the underlying investments. The
SEB Key Europe Equity L/S € 94.04 - 0.62 0.00 High Income Cls A New USD Dis $ 6.98 - 0.00 8.35 buying and selling price for shares of an OEIC
Odey Allegra European USD $ 157.11 - 0.46 0.00 Regulated Veritas Global Equity Income Fund A EUR € 185.37 - 0.01 4.50
Pictet-EUR Bonds-I F € 468.62 - 0.07 0.00 Pictet-USA Index-R USD F $ 115.03 - -0.66 0.00 and units of a single priced unit trust are the
Camber International Equity Growth Limited £ 12.71 - 0.09 0.43 SEB Key Select C € 9.56 9.65 0.00 0.00 High Income Cls A New USD Acc $ 10.61 - -0.01 0.00
Odey Allegra European GBP £ 182.16 - 0.72 0.00 Veritas Global Equity Income Fund A USD $ 123.07 - 0.58 4.51 same.
Pictet-EUR Bonds-P F € 450.25 - 0.07 0.00 Pictet-USA Index-R dy GBP F £ 70.04 - -0.22 0.63 Treatment of manager’s periodic capital
BDP Limited SEB Key Select I € 9.78 9.78 0.00 0.00 Global Bd (£) GBP Dis £ 13.40 - -0.05 0.00
Odey Allegra European GBP I £ 160.68 - 0.52 - Veritas Global Equity Income Fund C GBP £ 155.12 - 0.25 - charge: The letter C denotes that the trust
Pictet-EUR Bonds-P dy F € 308.43 - 0.04 3.26 Pictet-USD Government Bonds-I F $ 613.08 - 2.13 0.00
Bond Fund GBP £ 9.92 - -0.14 5.67 SEB Nordic Fund € 6.60 6.67 0.00 0.00 Global Bd (£) GBP Acc £ 15.56 - -0.06 0.00 deducts all or part of the manager’s/operator’s
Odey Allegra International GBP Class £ 137.63 - 0.94 0.00 Veritas Global Equity Income Fund C EUR € 194.27 - 0.02 -
Pictet-EUR Corporate Bonds-HI USD F $ 202.70 - -0.04 0.00 Pictet-USD Government Bonds-P F $ 591.75 - 2.05 0.00 periodic charge from capital, contact the
Income Fund Sterling £ 3.17 - -0.06 8.30 Global Bd (€) Acc € 14.29 - -0.08 0.00
Odey Allegra International GBP D Inc F £ 124.68 - 0.84 0.00 Veritas Global Equity Income Fund C USD $ 128.40 - 0.61 - manager/operator for full details of the effect of
Pictet-EUR Corporate Bonds-HI CHF FSFr 238.45 - -0.06 0.00 Pictet-USD Government Bonds-P dy F $ 398.40 - 1.38 2.90 SIA (SIA Funds AG) (LUX) this course of action.
The Discretionary Pfolio £ 12.01 - 0.06 1.24 Global Bd (€) Dis € 12.58 - -0.07 0.00
Odey Allegra International Euro Class € 109.16 - 0.25 0.00 Regulated Veritas Global Real Return Fund A USD $ 17.38 - 0.08 0.96 Exit Charges: The letter E denotes that an
Pictet-EUR Corporate Bonds-HP USD F $ 193.64 - -0.04 0.00 Pictet-USD Short Mid-Term Bonds-I F $ 127.34 - 0.04 0.00
LTIF Alpha € 139.26 - 0.12 0.00 Global Bd ($) Acc $ 11.89 - -0.05 0.00 exit charge may be made when you sell units,
Odey Allegra International Euro I Class € 100.55 - 0.23 0.00 Veritas Global Real Return Fund A GBP £ 9.48 - 0.04 0.83
Pictet-EUR Corporate Bonds-HP CHF FSFr 227.83 - -0.06 0.00 Pictet-USD Short Mid-Term Bonds-P F $ 125.19 - 0.03 0.00 contact the manager/operator for full details.
LTIF Classic € 242.72 - -0.05 0.00 Global Bd ($) Dis $ 10.43 - -0.04 0.00 Time: Some funds give information about
Veritas Global Real Return Fund A EUR € 12.61 - 1.73 0.00
Odey Investments Plc (IRL) Pictet-EUR Corporate Bonds-I F € 177.48 - -0.04 0.00 Pictet-USD Short Mid-Term Bonds-P dy F $ 98.34 - 0.03 1.73 the timing of price quotes. The time shown
LTIF Em.Mkt Value € 78.93 - -0.28 0.00 Global Credit A EUR Dis € 9.74 - 0.00 1.37
Regulated Retail alongside the fund manager’s/operator’s name
Pictet-EUR Corporate Bonds-P F € 169.48 - -0.04 0.00 Pictet-USD Sov.ST.Mon.Mkt-I $ 102.30 - 0.01 0.00
LTIF Natural Resources € 93.49 - -0.35 0.00 Global Credit A EUR Acc € 10.61 - 0.00 0.00 is the valuation point for their unit trusts/OEICs,
Odey Giano European Fund EUR € 104.09 - -0.06 - Veritas Asian Fund B USD $ 171.28 - 1.08 0.73
Pictet-EUR Corporate Bonds-P dy F € 106.22 - -0.03 3.62 Pictet-USD Sov.ST.Mon.Mkt-P $ 101.91 - 0.01 0.00 unless another time is indicated by the symbol
Real Estate Securities Cls A GBP Acc £ 12.01 - 0.13 0.00 alongside the individual unit trust/OEIC name.
Odey Giano European Fund GBP £ 103.97 - -0.07 - Veritas Asian Fund B GBP £ 207.17 - 0.66 0.37
Pictet-EUR Government Bonds-P dy F € 106.53 - 0.04 3.30 Pictet-USD Sov.ST.Mon.Mkt-Pdy $ 100.38 - 0.01 0.02 SIA (SIA Funds AG) (CH) The symbols are as follows: ✠ 0001 to
Real Estate Securities Cls A GBP Dist £ 11.46 - 0.12 1.72
Odey Giano European Fund USD $ 104.85 - -0.06 - Veritas Asian Fund B EUR € 159.06 - 0.27 0.70 1100 hours; ♦ 1101 to 1400 hours; ▲1401 to
Pictet-EUR High Yield-HI CHF F SFr 272.29 - 0.04 0.00 Pictet-Water-HP USD F $ 212.38 - -0.11 0.00 RBC Offshore Fund Managers Limited (GSY) Other International Fds
Water & Agriculture Abs Rtn USD Acc $ 12.05 - -0.02 0.00 1700 hours; # 1701 to midnight. Daily dealing
Odey Odyssey Fund USD $ 109.99 - -0.04 - Regulated LTIF Stability Growth SFr 185.80 - -0.60 0.00 Veritas China Fund B USD $ 107.38 - 1.01 0.00 prices are set on the basis of the valuation
Pictet-EUR High Yield-HP CHF F SFr 257.88 - 0.04 0.00 Pictet-Water-HR USD F $ 196.86 - -0.12 0.00
Water & Agriculture Abs Rtn USD Dis $ 10.64 - -0.02 0.00 point, a short period of time may elapse before
Odey Odyssey Fund GBP I £ 109.67 - -0.05 - ARC Fund Ltd Class B $ 168.0693 - 1.9319 0.00 LTIF Stability Inc Plus SFr 187.20 - -0.60 - Veritas China Fund B GBP £ 100.15 - 0.94 0.15
Pictet-EUR High Yield-I F € 201.19 - 0.03 0.00 Pictet-Water-I EUR F € 178.93 - -0.09 0.00 prices become available.Historic pricing: The
Emerging Asia B USD Acc $ 8.39 - 0.01 0.00
Odey Odyssey Fund GBP R £ 109.12 - -0.05 - Veritas China Fund B EUR € 101.83 - 0.94 0.00 letter H denotes that the managers/operators
Pictet-EUR High Yield-P F € 190.54 - 0.03 0.00 Pictet-Water-I USD F $ 231.02 - -0.47 0.00 RBC Regent Strategy Fund Limited (JER)
Odey Odyssey Fund EUR € 98.89 - -0.04 -
SKAGEN Funds (NOR) Emerging Asia B USD Dis $ 8.38 - 0.02 0.00
Veritas Global Focus Fund B USD $ 13.91 - 0.08 0.91
will normally deal on the price set at the most
Pictet-EUR High Yield-P dy F € 92.30 - 0.01 5.84 Pictet-Water-P EUR € 163.26 - -0.09 0.00 Regulated PO Box 160, 4001 Stavanger, Norway
recent valuation. The prices shown are the
Global Emerging Markets USD Acc $ 13.86 - 0.04 0.00 latest available before publication and may not
Asia Pacific Equity Class B $ 147.24 - 0.22 1.21 Tel (47) 51 21 38 58 www.skagenfunds.com Veritas Global Focus Fund B GBP £ 15.50 - 0.08 0.92
Pictet-EUR Inflation Linked Bonds-P dy F € 108.63 - -0.03 1.32 Pictet-Water-P USD F $ 210.78 - -0.45 0.00 be the current dealing levels because of an
Odey Wealth Management (CI) Ltd (IRL) Global Emerging Markets USD Dist $ 44.17 - 0.14 0.22
Canadian Equity Class B C$ 152.98 - 1.19 0.16 FSA Recognised Veritas Global Focus Fund B EUR € 10.73 - -0.03 1.87 intervening portfolio revaluation or a switch to a
FSA Recognised Pictet-EUR Short Mid-Term Bonds-HI CHF FSFr 114.00 - 0.03 0.00 Pictet-Water-P dy EUR F € 161.06 - -0.09 0.14
SKAGEN Global € 110.73 - 0.41 0.00 Global High Yield A Euro Acc € 10.52 - 0.00 0.00 forward pricing basis. The managers/operators
ODEY OPPORTUNITY CHF SFr 102.02 - -0.10 0.00 European Equity Class B € 143.68 - 1.10 0.65 Veritas Global Equity Income Fund B GBP £ 138.45 - 0.21 4.52 must deal at a forward price on request, and
Pictet-EUR Short Mid-Term Bonds-HP CHF FSFr 111.83 - 0.03 0.00 Pictet-Water-P dy GBP F £ 129.99 - 0.17 0.15
SKAGEN Kon-Tiki € 69.39 - 0.28 0.00 Global High Yield A Euro Dis € 10.26 - 0.00 0.48 may move to forward pricing at any time.
ODEY OPPORTUNITY CHF I SFr 102.29 - -0.09 0.00 Intl Ex North America Equity Class B $ 111.99 - 0.48 2.45 Veritas Global Equity Income Fund B EUR € 172.84 - 0.02 4.51
Pictet-EUR Short Mid-Term Bonds-P F € 128.38 - 0.03 0.00 Pictet-Water-R USD F $ 195.39 - -0.42 0.00 Forward pricing: The letter F denotes that that
SKAGEN Vekst € 166.49 - 0.42 0.00 Global Emerging Mkt Abs Rtn A USD Acc $ 8.84 - -0.02 0.00
ODEY OPPORTUNITY EUR € 119.33 - -0.09 0.00 UK Bond Class B £ 105.93 - 0.02 2.29 Veritas Global Equity Income Fund B USD $ 124.07 - 0.58 4.53 managers/operators deal at the price to be set
Pictet-EUR Short Mid-Term Bonds-I F € 130.69 - 0.03 0.00 Pictet-Water-R EUR € 151.33 - -0.09 0.00 at the next valuation.
SKAGEN Tellus € 14.89 - 0.02 0.00 Global Emerging Mkt Abs Rtn B USD Acc $ 8.93 - -0.02 0.00
ODEY OPPORTUNITY EUR I € 178.61 - -0.13 0.00 UK Equity Class B £ 159.85 - 1.28 1.10 Veritas Global Real Return Fund B USD $ 16.87 - 0.08 0.59 Investors can be given no definite price in
Pictet-EUR Short Mid-Term Bonds-P dy F € 91.60 - 0.02 3.32 Pictet-World Government Bonds-I EUR F € 151.09 - 0.85 0.00
Veritas Global Real Return Fund B GBP £ 9.39 - 0.04 0.47 advance of the purchase or sale being carried
ODEY OPPORTUNITY GBP I R £ 197.11 - -0.16 0.00 Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 103.40 - 0.00 0.00 Pictet-World Government Bonds-I USD F $ 194.73 - 0.67 0.00 US Dollar Capital Growth Class $ 12.64 - -0.03 0.04 Sloane Robinson LLP (CYM) Thames River Capital out. The prices appearing in the newspaper are
US Equity Class $ 124.20 - -0.01 0.00 Regulated Northern Trust International Fund Administration Services (Ireland) Ltd, Veritas Global Real Return Fund B EUR € 11.06 - 0.05 0.42 the most recent provided by the
ODEY OPPORTUNITY GBP R £ 126.81 - -0.10 0.00 Pictet-EUR Sov.Sht.Mon.Mkt EUR P € 102.91 - 0.00 0.00
Georges Court 54-62 Townsend Street, Dublin 2, Ireland managers/operators. Scheme particulars,
Pimco Fds: Global Investors Series Plc (IRL) . S.R. Global Fund Inc. prospectus, key features and reports: The most
ODEY OPPORTUNITY NOK NKr 107.99 - -0.07 0.00 Pictet-EUR Sov.Sht.Mon.Mkt EUR Pdy € 100.21 - 0.00 0.17 PIMCO Europe Ltd,11 Baker Street,London W1U 3AH For RMF Investment Management Funds see Man Investments
Phone +353 (0)1 434 5059 Veritas Asset Management (UK) Limited recent particulars and documents may be
B-Asia $ 582.61 - -3.23 0.00 Fax +353 (0)1 670 1185
ODEY OPPORTUNITY NOK I NKr 110.45 - -0.14 0.00 Pictet-European Sust Eq-P EUR F € 152.47 - 1.32 0.00 http://gisnav.pimco-funds.com/ www.veritas-asset.com obtained free of charge from fund
Dealing: +44 20 3640 1000 C-International $ 372.62 - -2.90 - thameshedge@ntrs.com Other International Funds managers/operators. * Indicates funds which do
ODEY OPPORTUNITY USD $ 126.15 - -0.09 0.00 Pictet-Europe Index-I EUR F € 119.07 - 1.02 0.00
Other International Funds not price on Fridays.
PIMCO Funds: +44 (0)20 3640 1407 G1 Emerging Mkts $ 1048.63 - -9.14 0.00 Real Return Asian Fund USD € 229.63 - 2.69 0.00 Charges for this advertising service are
ODEY OPPORTUNITY USD I $ 187.79 - -0.13 0.00 Pictet-Europe Index-IS EUR F € 119.59 - 1.03 0.00
FSA Recognised Hillside Apex Cls A $ 1219.13 - -56.05 0.00 based on the number of lines published and the
H - Japan $ 77.33 - 1.02 0.00 Real Return Asian Fund GBP £ 239.80 - -3.26 0.00
Pictet-Europe Index-P EUR € 117.75 - 1.02 0.00 CommoditiesPLUS111sp Strategy - Inst Acc $ 10.42 - -0.04 0.00 classification of the fund. Please contact
Omnia Fund Ltd SR Phoenicia Inc Warrior Cls A (Final) $ 2492.59 - 74.95 -
Real Return Asian Fund EUR $ 230.41 - -8.52 0.00 data@ft.com or call
Other International Funds Pictet-Europe Index-P dy EUR F € 100.76 - 0.87 2.53 Diversified Income - Inst Acc $ 18.19 - 0.00 0.00 +44 (0)20 7873 3132 for further information.
Phoenicia A $ 382.05 - -6.17 - Warrior Cls F (Final) $ 1037.66 - 31.18 -
Estimated NAV $ 440.20 - 35.77 - Pictet-Europe Index-R dy GBP F £ 85.98 - 0.91 2.51 Emerging Local Bond - Inst Acc $ 14.55 - -0.01 0.00 Victory Capital Ltd
Warrior II Class A (Final) $ 1237.78 - 36.70 0.00
Pictet-Euroland Index-P dy EUR F € 75.89 - 0.97 3.27 Emerging Markets Bond - Inst Acc $ 39.16 - -0.06 0.00 Robeco Asset Management (LUX) Smith & Williamson Investment Mgmt Ltd (BMU) Other International Funds
Coolsingel 120, 3011 AG Rotterdam, The Netherlands. Warrior II Class F (Final) $ 972.61 - 28.82 -
Pictet-Euroland Index-R dy GBP F £ 64.87 - 0.95 3.17 Regulated Victory Capital Ltd A GBP (Est) £ 141.00 - -4.60 -
Emerging Markets Corp.Bd Fund Inst Acc F $ 13.19 - 0.01 0.00 tel (31)10 2242381 www.robeco.com Sentinel Cls A (Final) $ 1728.90 - -1.85 0.00
Bermuda Capital Co Ltd $ 290.39 - -1.61 0.48
Pictet-European Equity Selection-I EUR F € 504.21 - 2.61 0.00 Emerging Markets Curr.Fd- Inst Acc $ 13.71 - -0.01 0.00 FSA Recognised
Mid Ocean World Inv $ 437.54 - -2.43 0.20 Longstone Cls A € 1296.74 - -3.13 0.00 Waverton Investment Funds Plc (1600)F (IRL)
Pictet-European Equity Selection-P EUR F € 479.80 - 2.48 0.00 EuriborPLUS - Inv. Acc € 11.61 - 0.00 0.00 Asia-Pacific Equities (EUR) € 91.65 - 0.14 0.00 waverton.investments@citi.com
Pancurri Investment Ltd (Est) $ 1046.85 - -9.61 0.00 Property Growth & Inc Cls A GBP Inc £ 10.96 - 0.02 4.73
Pictet-Eu Equities Sel-Pdyistr F € 447.10 - 2.31 0.61 Euro Bond - Inst Acc € 19.21 - 0.01 0.00 Chinese Equities (EUR) € 52.33 - -0.31 0.00 FSA Recognised
Property Growth & Inc Cls A GBP Acc £ 14.72 - 0.03 0.00
Pictet-Europe Index-R EUR F € 114.81 - 0.98 0.00 Em Stars Equities (EUR) € 146.81 - -0.33 0.00 Asia Pacific B USD $ 17.28 - -0.01 1.44
Euro Credit - Inst Acc € 12.96 - 0.00 0.00 Spinnaker Capital Group Africa Focus Class A USD (Final) $ 1096.35 - 31.96 0.00

Give your
Optima Fund Management Pictet-European Sust Eq-I EUR F € 159.06 - 1.38 0.00 Emerging Markets Equities (EUR) € 135.30 - -0.35 0.00 Other International Funds European Fund B Eur H € 8.24 - 0.05 0.96
Euro Income Bond - Inst Acc F € 11.23 - 0.00 0.00 Isis Cls A $ 8013.40 - 228.80 0.00
Other International Funds
Pictet-European Sust Eq-Pdy EUR F € 136.69 - 1.18 1.65 Euro Liquidity - Inst Dist € 1.00 - 0.00 0.30 Flex-o-Rente (EUR) € 107.76 - 0.01 0.00 Global Emg Markets Ser K1 (Est) $ 100.26 - 4.58 0.00 Global Bond Fund Cls A $ 9.86 - 0.00 4.83
Optima Fd NAV $ 76.30 - -0.64 0.00
Pictet-Generics-I USD F $ 159.17 - -0.42 0.00 Glob.Consumer Trends Equities (EUR) € 88.04 - -0.05 0.00 Global Opportunity Ser K1 (Est) $ 93.88 - 1.90 0.00 Tilney Asset Management Intl Ltd (GSY) Global Equity Fund B GBP H £ 5.27 - 0.03 0.00

funds
Euro Long Average Duration - Inst Acc € 16.78 - -0.01 0.00
Optima Discretionary Macro Fund Limited $ 82.43 - -0.58 0.00 Other International Funds
Pictet-Generics-P USD F $ 149.13 - -0.40 0.00 Euro Real Return - Inst Acc € 12.43 - 0.01 0.00 High Yield Bonds (EUR) € 109.59 - 0.07 0.00 JOHIM Equity Fund GBP £ 10.86 - 0.01 0.00
The Dorset Energy Fd Ltd NAV $ 43.74 - 0.61 0.00 The Glanmore Property Fund
Pictet-Generics-P dy GBP F £ 92.81 - 0.07 0.00 Euro Ultra Long Duration - Inst Acc € 21.44 - -0.01 0.00 Lux -O- Rente (EUR) € 126.90 - -0.02 0.00 JOHIM Sterling Bond Fund A GBP £ 10.24 - 0.00 5.07
Platinum Fd Ltd (Est) $ 69.24 - 0.61 0.00 NAV (Susp) £ 2.24 - -0.09 12.08

maximum
Pictet-Generics-P dy USD F $ 149.09 - -0.40 0.00 FX Strategies - Inst Acc € 10.88 - 0.00 0.00 Natural Ress Equities (EUR) € 86.46 - 0.21 0.00 UK Abs. Fund GBP £ 9.92 - 0.00 0.00
Platinum Fd Ltd EUR (Est) € 13.73 - 0.12 0.00 B Share NAV (Susp) £ 2.24 - -0.09 12.08
Pictet-World Government Bonds-P USD $ 188.78 - 0.65 0.00 Global Advantage - Inst Acc $ 13.04 - 0.01 0.00 New World Financials (EUR) € 33.68 - -0.04 0.00 UK Fund B GBP H £ 10.28 - 0.15 2.31
Platinum Japan Fd Ltd $ 32.81 - 0.94 0.00 The Glanmore Property Dollar Fund
Pictet-World Government Bonds-P dy USD $ 145.46 - 0.51 2.39 Global Bond - Inst Acc $ 25.06 - 0.05 0.00 SAM Sust. Agrib.Eq. D € 108.61 - -0.10 0.00
WA Fixed Income Fund Plc

exposure
Optima Emerging Markets Fd Ltd $ 14.30 - 0.07 0.00 NAV (Susp) $ 1.06 - -0.03 0.00 (IRL)
Pictet-Global Emerging Debt-P USD F $ 322.23 - -1.27 0.00 Global Bond Ex-US - Inst Acc $ 16.99 - 0.04 0.00 US Premium Equities (EUR) € 118.07 - 0.93 0.00 Regulated
Optima Partners Global Fd $ 12.28 - -0.01 0.00 Stenham Asset Management Inc B Share NAV (Susp) $ 0.96 - -0.04 0.00
Pictet-Global Emerging Debt-P dy USD F $ 189.06 - -0.75 4.68 Global High Yield Bond - Inst Acc $ 17.53 - -0.03 0.00 US Premium Equities (USD) $ 131.42 - 1.06 0.00 European Multi-Sector € 111.80 - 0.13 0.00
Optima Partners Focus Fund A $ 11.93 - -0.09 0.00 Other International Funds The Glanmore Property Euro Fund Limited
Pictet-Global Emerging Currencies-I EUR F € 84.11 - 0.10 0.00 Global Investment Grade Credit - Inst Income $ 12.30 - 0.02 3.64
Cuttyhunk II Limited Unrestricted USD Acc NAV $ 1195.67 - 6.16 0.00 Royal Bank of Scotland (IRL) Stenham Universal USD $ 381.38 - 1.59 0.00 NAV (Susp) € 0.95 - -0.02 0.00 Williams de Broë Assetmaster Fund Plc (IRL)
Pictet-Global Emerging Currencies-I USD F $ 109.24 - -0.11 0.00 Global Multi-Asset - Inst Acc $ 14.16 - -0.02 0.00 RBS Asset Management (Dublin) Limited Stenham Universal EUR € 119.95 - 0.44 0.00 B Share NAV (Susp) € 0.60 - -0.04 0.00 Comore Plaza, Colmore Circus, Birmingham, B4 6AT 0044 121 2320726
Orbis Investment Management Ltd (BMU) Pictet-Global Emerging Currencies-HI EUR F € 68.68 - -0.07 0.00 Global Real Return - Inst Acc $ 17.38 - 0.06 0.00 Guild Hse, PO Box 4935 Guild St, IFSC Dublin 1 00 353 1 642 8400 FSA Recognised
Stenham Universal GBP £ 131.20 - 0.55 0.00
Regulated Pictet-Global Emerging Currencies-HP EUR F € 67.24 - -0.07 0.00 High Yield Bond - Inst Acc $ 24.41 - -0.03 0.00
FSA Recognised
Stenham Universal II USD $ 143.53 - 0.54 0.00
Tilney Asset Management Intl Ltd
Other International Funds
Assetmaster Growth Fund £ 1.60 - 0.01 0.00 Publish your funds in
Orbis Global Equity $ 123.80 - -2.65 0.00 RBSG Investment Programmes
Pictet-Global Emerging Currencies-P EUR F € 82.33 - 0.09 0.00 Assetmaster Cautious Fund £ 1.37 - 0.00 0.00
Orbis Optimal (US$) $ 73.27 - -0.07 0.00
Low Average Duration - Inst Acc $ 14.43 - 0.02 0.00
RBSG Cont Eur Spec Equity Ser 3 € 88.80 - 0.69 0.54 Stenham Universal II GBP £ 140.56 - 0.53 - The Glanmore Property Accumulation Fund Limited the Financial Times
Pictet-Global Emerging Currencies-P USD F $ 106.91 - -0.11 0.00 PIMCO EqS Pathfinder.Eur.Fd Inst Acc F € 11.15 - 0.02 0.00 Assetmaster Balanced Fund £ 1.35 - 0.01 0.00
Orbis Optimal (Euro) € 24.64 - -0.01 0.00
Pictet-Global Em Ccy-Pdy USD F $ 98.88 - -0.10 2.73 PIMCO EqS Pathfinder.Fd Inst Acc F $ 11.32 - 0.00 0.00
RBSG UK Equity Index Programme Ser 3 £ 23.83 - 0.16 3.14 Stenham Universal II EUR € 124.42 - 0.39 0.00 NAV £ 0.42 - -0.01 0.00
Assetmaster Intl Growth Fund £ 1.56 - 0.01 0.00 and stand out in an
RBSG UK Specialist Eqty Ser 3 £ 17.17 - 0.17 0.97 Stenham Growth USD $ 173.65 - 0.00 - B Share NAV £ 1.03 - -0.03 0.00
Orbis Optimal (Yen) ¥ 982.00 - 2.00 0.00
Pictet-Global Emerging Debt-HP EUR F € 229.94 - -0.92 0.00 Socially Resp.Emerg.Mkts Bd Fd Inst Acc F $ 12.96 - -0.02 0.00 Stenham Trading Port. $ 4782.96 - 23.57 -
Multi Strategy Fund H £ 1.77 - -0.04 0.00 overcrowded market.
Orbis Leveraged (US$) $ 117.44 - 0.07 0.00 RBSG UK Sovereign Bond Index Prog Ser 3 £ 14.75 - 0.06 3.06

Orbis Leveraged (Euro) € 38.45 - 0.02 0.00

Pictet-Global Emerging Debt-HP CHF FSFr 371.79 - -1.48 0.00 StocksPLUS{TM} - Inst Acc $ 15.00 - 0.00 0.00
RBSG Contl Eurp Eqty Index Prog Ser 3 € 276.43 - 1.55 2.47 Stenham Quadrant USD A $ 373.66 - 1.31 -
Chameleon Capital H £ 1.12 - 0.00 0.00
It’s a powerful way to
Pictet-Global Emerging Debt-HI EUR F € 241.34 - -0.96 0.00 Total Return Bond - Inst Acc $ 26.15 - 0.05 0.00
Orbis Leveraged (Yen) ¥ 920.00 - 1.00 0.00
Pictet-Global Emerging Debt-HI CHF FSFr 392.92 - -1.55 0.00
RBSG Japan Specialist Equity Prog Ser 3 ¥ 3233.00 - 16.00 0.76 Stenham Quadrant USD A $ 373.66 - 1.31 -
promote your brand,
UK Corporate Bond - Inst Acc £ 14.63 - -0.01 0.00 Stenham Asia EUR € 90.16 - 0.00 -
Orbis Japan Equity (US$) $ 23.11 - -0.07 0.00
Pictet-Global Emerging Debt-I USD F $ 340.44 - -1.34 0.00 UK Long Term Corp. Bnd Inst-Inst Acc £ 15.73 - -0.01 0.00
RBSG US Equity Index Programme Ser 3 $ 49.34 - 0.00 0.87
Stenham Asia GBP £ 92.29 - 0.00 -
communicate with
*Orbis Prices as of October 25th RBSG Pacific Basin Eqty Ser 3 $ 52.52 - 0.25 1.43
Pictet-Global Megatrend Selection-I USD F $ 158.82 - -0.22 0.00 UK Sterling Inflation-Linked - Inst Acc £ 17.88 - -0.06 0.00
RBSG Emerging Markets Ser 3 $ 33.58 - 0.18 1.33 Stenham Asia USD $ 115.49 - 0.00 - your clients and attract
Orbis Sicav (LUX) Pictet-Global Megatrend Selection-I EUR F € 123.01 - 0.02 0.00 Toscafund (CYM)
Regulated
Pictet-Global Megatrend Selection-P USD F $ 153.62 - -0.21 0.00
UK Sterling Long Average Duration - Inst Acc £ 18.22 - -0.07 0.00
RBSG Global Investment Grade Bond GBP Series 6 £ 127.17 - 0.27 2.93 Stenham Gold USD $ 306.19 - 0.00 -
Regulated new investors.
UK Sterling Low Average Duration - Inst Acc £ 13.78 - -0.01 0.00 Stenham Multi Strategy EUR € 100.17 - 0.41 -
Orbis Japan Equity (Yen) ¥ 2214.00 - -6.00 0.00 RBSG Global Investment Grade Programme GBP S3 £ 117.17 - 0.25 2.96 Tosca $ 194.86 - 4.76 0.00 Winton Capital Management
Pictet-Global Megatrend Selection-P CHF FSFr 143.87 - -0.05 0.00 UK Total Return Bond - Inst Acc £ 13.63 - 0.00 0.00 Other International Funds
Orbis Japan Equity (Euro) € 15.00 - -0.04 0.00
Pictet-Global Megatrend Selection-P EUR F € 119.00 - 0.01 0.00 Unconstrained Bond - Inst Acc $ 12.13 - 0.01 0.00
RBSG UK Sovereign Bond Index Programme Series 6 £ 11.45 - 0.05 3.03 Stenham Multi Strategy GBP £ 103.73 - 0.46 - Tosca Mid Cap GBP £ 135.64 - 15.68 0.00 For more information
Stenham Multi Strategy USD $ 104.60 - 0.48 - Winton Futures USD Cls B $ 822.53 - 0.04 0.00
Orbis Asia ex-Japan - Investor Shares $ 18.17 - 0.15 0.00 Absolute Rtn Multi Asset Prog SER 3 GBP £ 9.83 - -0.02 - Tosca Opportunity B USD $ 168.14 - -14.42 0.00
Pictet-Glo Megatrend Sel-Pdy EUR F € 118.98 - 0.01 0.00 US Government Money Market - Inst Inc $ 1.00 - 0.00 0.05
** 30 day average yield Stenham Global Resources EUR € 102.91 - 0.00 - Winton Futures EUR Cls C € 231.79 - 0.40 0.00 please contact
Orbis Global Equity - Investor Shares € 94.25 - -1.14 0.00
Pictet-Glo Megatrend Sel-Pdy GBP F £ 95.63 - 0.19 0.00
Pioneer Alternative Inv Mgt (BMU)
Stenham Global Resources GBP £ 107.92 - 0.00 - Winton Futures GBP Cls D £ 251.13 - 0.10 0.00 data@ft.com or call
Orbit Asset Management Pictet-Glo Megatrend Sel-Pdy USD F $ 153.62 - -0.21 0.00 Royal London Asset Mgmt (Ireland) Ltd (IRL)

Other International Funds Pictet-Global Megatrend Selection-R EUR F € 114.79 - 0.01 0.00
Other International Funds PO Box 9428, Dublin 1, Ireland 08456 040404 Stenham Global Resources USD $ 109.44 - 0.00 - Winton Futures GBP Cls F £ 96.82 - 0.01 -
+44 (0) 20 7873 3132
Pioneer Horizon Fund $ 117.24 - 0.93 0.00 FSA Recognised Stenham Managed Fund EUR € 95.63 - 1.49 - Winton Evolution USD Cls F (Est) $ 1347.02 - -29.17 0.00
Orbit Global Strategy $ 145.42 - 1.56 0.00 Pictet-Global Megatrend Selection-R USD F $ 148.20 - -0.22 0.00
Pioneer AssetMaster $ 859.77 - 3.99 0.00 Royal London Asset Management Bond Funds PLC Stenham Managed Fund GBP £ 99.54 - 1.60 - Winton Evolution EUR Cls H € 1063.00 - -22.25 0.00
Orbit Euro Strategies € 126.72 - 0.99 0.00 Pictet-Greater China-I USD F $ 387.66 - 2.96 0.00 Sterling Extra Yield Bond A £ 1.04 - 0.00 7.84
Pioneer Div Fund I EUR € 102.57 - 0.52 - Stenham Managed Fund USD $ 99.94 - 1.64 - Winton Evolution GBP Cls G (Est) £ 1069.51 - -21.83 0.00
Pictet-Greater China-P USD F $ 362.01 - 2.76 0.00 Sterling Extra Yld Bd B £ 1.02 - 0.00 7.55 TreeTop Asset Management S.A. (LUX)
Oryx International Growth Fund Ltd Pioneer Div Fund I USD $ 102.97 - 0.63 - Winton Futures JPY Cls E ¥ 16102.23 - 4.93 0.00
Pictet-Greater China-P dy USD F $ 351.43 - 2.68 0.25 Stratton Street Capital (CI) Limited (GSY) Regulated
Other International Funds The Meteor Opps I $ 135.07 - 1.28 0.00 Regulated TreeTop Convertible Sicav World Trust Fund (LUX)
NAV (Fully Diluted) £ 3.22 - 0.10 0.00 Pictet-Greater China-P dy GBP F £ 217.31 - 0.97 0.25
The Meteor Opps I € 135.48 - 1.07 0.00 Wonda Bond & Currency Fund (USD) $ 117.48 - 1.49 0.00 International A € 215.73 - 0.49 0.00 Regulated
Pictet-High Dividend Sel I EUR F € 112.72 - 0.28 0.00
Fine Wine Geared Fund £ 0.47 - -0.01 0.00 Shares NAV £ 2.13 - 0.00 0.00
PFPC International Ltd Pictet-High Dividend Sel P CHF F SFr 133.47 - 0.27 0.00
International B $ 278.67 - 0.76 0.00
Other International Funds Japanese Synthetic Warrant ¥ 84.60 - -6.40 0.00 International C £ 95.63 - 0.24 3.13
Pictet-High Dividend Sel P EUR F € 110.47 - 0.27 0.00 Xanthos Asset Management Ltd
Intl Dollar Reserve A $ 1.00 - 0.00 0.05 Japan Synthetic Warrant Fund USD Class $ 1.40 - -0.11 0.00 Pacific A € 249.70 - 0.55 0.00
Pictet-High Dividend Sel P USD F $ 143.37 - 1.16 0.00 Other International Funds
Intl Dollar Reserve B $ 1.00 - 0.00 0.03 Asia Synthetic Warrant Fund $ 6.15 - 0.53 0.00
Pictet-High Dividend Sel Pdm GBP F £ 81.49 - 0.37 4.01 Russell Investment Company Plc (IRL) Pacific B $ 315.68 - 0.77 0.00 Xanthos Capital USD $ 938.16 - -0.76 0.00
Intl Dollar Reserve Bear $ 1.00 - 0.00 0.03 Russell Investment Group 10 Regent St Ldn SW1Y 4PE 020 7024 6000 Renminbi Bond Fund AUD Cls A A$ 111.87 - 0.19 - TreeTop Global Sicav Xanthos Equities USD $ 968.01 - 18.58 0.00
Pictet-High Dividend Sel Pdm USD F $ 130.03 - 1.06 3.95 FSA Recognised Renminbi Bond Fund AUD Cls B A$ 111.80 - 0.19 - Global Opp.A € 103.28 - 0.61 0.00 Xanthos Investment Partners USD $ 2733.49 - -3.96 0.00
Pictet-High Dividend Sel Pdy EUR F € 104.32 - 0.25 3.81 Platinum Capital Management Ltd Cont Eur Eq B € 21.60 - 0.09 0.00
Renminbi Bond Fund CHF Cls A SFr 119.66 - 0.17 - Global Opp.B $ 108.40 - 0.88 0.00
Pictet-High Dividend Sel R EUR F € 108.72 - 0.27 0.00 Other International Funds Cont Eur Eq F F € 1165.67 - 5.03 0.00
Renminbi Bond Fund CHF Cls B SFr 119.46 - 0.17 - Global Opp.C £ 132.45 - 0.64 0.00
Pictet-High Dividend Sel Rdm EUR F € 98.51 - 0.24 3.98 Platinum Global Dividend Fund - A $ 60.56 - - -
Cont Eur Eq SH I F £ 86.45 - 0.33 0.00
Renminbi Bond Fund CNH Cls A CNH 120.14 - 0.15 - Sequoia Equity A € 92.11 - 0.39 0.00
Pictet-Indian Equities-I USD F $ 316.80 - 2.52 0.00 Platinum All Star Fund - A (Est) $ 98.38 - - -
Cont Eur Eq A € 24.86 - 0.11 0.00
Renminbi Bond Fund CNH Cls B CNH 119.91 - 0.14 - Sequoia Equity B $ 98.63 - 0.77 0.00
Pictet-Indian Equities-P USD F $ 296.22 - 2.34 0.00 Platinum Dynasty $ 96.84 - - -
Emerg Mkts Eq B $ 20.82 - 0.04 0.00
Renminbi Bond Fund Euro Cls B € 119.75 - 0.18 - Sequoia Equity C £ 111.53 - 0.46 0.00
Pictet-Indian Equities-P dy USD F $ 296.22 - 2.34 0.00 Platinum Essential Resources $ 9.78 - 0.12 -
Pictet Funds (Europe) SA (LUX) Global Bond B $ 21.31 - 0.06 0.00
Renminbi Bond Fund GBP Cls B £ 119.92 - 0.19 - Sequoia Pacific Equity A € 57.31 - -0.06 0.00
15, Avenue J.F. Kennedy L-1855 Luxembourg Pictet-Indian Equities-P dy GBP F £ 183.79 - 0.87 0.00 Platinum Low Volatility Fund SICAV $ 9.41 - - -
Japan Equity B ¥ 771.33 - -5.49 0.00 Yuki International Limited (IRL)
Tel: 0041 58 323 3000 Renminbi Bond Fund SGD Cls B S$ 119.75 - 0.17 - Sequoia Pacific Equity B $ 63.31 - 0.03 0.00
Pictet-Japan Index-I JPY F ¥ 7577.19 - 99.68 0.00 Platinum Nordic SKr 511.64 - - - Tel +44-207-269-0203 www.yukifunds.com
FSA Recognised Pacific Basin B $ 22.05 - -0.02 0.00
Renminbi Bond Fund USD Cls B $ 119.93 - 0.14 - Sequoia Pacific Equity C £ 77.45 - -0.25 0.00
Pictet-Japan Index-IS JPY F ¥ 7678.65 - 138.49 0.00 Platinum Precious Metals (Est) € 11.13 - 0.53 - Regulated
Pictet-Absl Rtn Glo Cons-I EUR F € 107.38 - -0.02 0.00 UK Index Linked I £ 17.80 - 0.07 0.00
Renminbi Bond Fund YEN Cls B ¥ 11997.09 - 16.70 - Yuki Mizuho Umbrella Fund
Pictet-Japan Index-P JPY F ¥ 7491.38 - 98.53 0.00 Platinum Maverick Enhanced $ 70.50 - - -
Pictet-Absl Rtn Glo Cons-P EUR F € 105.06 - -0.03 0.00 US Bond B F $ 17.24 - 0.03 0.00
Renminbi Bond Fund USD Class $ 165.92 - 0.20 3.63 Yuki Mizuho General Japan III ¥ 3347.00 - 39.00 0.00
Pictet-Japan Index-P dy JPY F ¥ 6970.51 - 91.69 1.78 Platinum Gold Advantage (Est) € 12.36 - - -
Pictet-Absl Rtn Glo Cons-Pdy EUR F € 102.21 - -0.02 0.61
Pictet-Japan Index-R dy GBP F £ 55.43 - 0.54 1.59 Platinum Global Dividend UCITS Fund $ 73.01 - 0.28 0.00
US Equity B $ 10.73 - 0.00 0.00
Renminbi Bond Fund GBP Class £ 160.36 - 0.25 3.66 Yuki Mizuho Japan Dynamic Growth ¥ 3330.00 - 40.00 0.00 www.ft.com/ir
Pictet-Absl Rtn Glo Div-I EUR F € 123.64 - 0.01 0.00 US Equity EH A F € 113.17 - 0.00 0.00
Renminbi Bond Fund SGD Class S$ 159.14 - 0.22 3.76 Yuki Mizuho Japan General ¥ 6750.00 - 90.00 0.00
24 ★ FINANCIAL TIMES THURSDAY NOVEMBER 1 2012

American and British Stocks

Stock
52 week Vol
Price Chng High Low Yld P/e ’000s Stock
52 week Vol
Price Chng High Low Yld P/e ’000s MARKET SUMMARY M Stock
52 week Vol
Price Chng High Low Yld P/e ’000s

UK Pennon
Persimn
717
795
-7.5 797
-5 811.50
665.50
442.58
3.7
1.3
15.2
16.8
1182
1007
n AMER CA n LONDON n EURO MARKETS n TOKYO n MAJOR MARKET VOLUMES WalMart @ 74.50
WasteMng 32.90
-.61
+.36
77.50 55.86 2.1 15.7 899
36.35 29.77 4.3 16.7 578
(Oct 31/Pence) Petrofac 1.6k +56 1.78k 1.26k 2.3 15.7 2493 ACT VE STOCKS ACT VE STOCKS ACT VE STOCKS ACT VE STOCKS WatersCp 81.29 -.27 94.45 70.89 - 17.3 60
3i 215.40 -4 254.82 166.10 3.8 - 3381 5d
Petropvlsk 403.30xd -5.7 826.66 286.60 3 6.4 2180 W dn d D W dn d D W dn d Tu n D W dn d D Weatherfd 11.18 -.29 18.33 11.14 - 24.5 662
AberAsM 324.50 +1 336.30 180.30 3 19.9 5099 PolymtIntl 1.11k -2 1.2k 747.50 - 23.6 329 O 3 O 30
d dm p h n d dm p h n Eu m p h n d dm p h n Wellpoint @ 60.92 -.37 74.73 52.52 1.8 8.3 203
ABG 424 -7.4 575 301.40 2.8 12.8 576 PremOil 350.70 -6.7 452.70 321.02 - 7.1 2223 M 42 9 28 60 +0 39 d B 46 8 40 58 0 53 D u h B n 256 8 34 9 +0 8 T hb 34 296 +3 WellsFargo @ 33.73 -.24 36.60 23.19 2.3 10.6 1982
Admiral 1.11k +8 1.19k 755.74 7.4 12.9 384 Providnt 1.37kxd -32 1.46k 908.50 5.2 14.3 358 NYSE 363 632
Aegis 235.10 -.2 238.40 121 1.4 25.4 9348
n 22 6 2 0 0 25 V d n 2 68 25 2 80 S m n AG 243 6 54 +0 0 MU G 65 3 36 + WestUnion 12.80 -5.13 19.82 12.64 3.3 6.4 5322
Prudential @ 848.50 +.5 873.50 549 3 14 5909 C S m 22 22 00 BG 94 5 4 50 82 00 B S nd 236 0 5 9 +0 02 M uh n 58 4 25 + NASDAQ 02 2
Aggreko 2.15k +21 2.42k 1.65k 1 20.4 1060 PZ Cusns 338.50 -3.8 377.60 282.49 2 25.9 217 Weyerhsr 27.72 +.35 28.82 15.40 2.2 48.8 476
Alliance 367.80 -1.8 378.88 320.40 2.3 38.7 356 Yh 33 6 3 0 06 B 86 22 50 30 T 224 8 38 82 0 A N PPON AW 42 69 +9 UK 3325 2382 2 82
RBS @ 276 -4.8 299.74 172.79 - - 12007 App 20 595 92 8 08 BP 42 0 443 30 +0 45 BBVA 2 58 6 44 +0 2 M ubH 39 0 336 0 Whirlpool 97.73 +2.44 97.96 45.22 2 15.9 183
AMEC 1.06k +2 1.19k 820.38 3 14.7 1759 ReckittB @ 3.75k -28 3.86k 3.1k 3.4 16 2341 n 66 63 WilliamsCp @ 34.60 -.22 37.56 23.79 3.2 27.8 481
Amlin 373.20 +2.9 408.30 269 6.2 10.8 1891 dM 20 09 +0 66 T 26 6 3 9 85 + 05 En 2 34 +0 02 H h 3 5 423 +3
Reed Els @ 606 +1.5 622 466.10 3.6 22.1 4970 O C p 8 30 99 BT 23 2 2 50 3 0 Un d 2 9 34 0 04 K w K n 35 0 +4 G m n 3 59 4 WiscnsnE 38.16 +.28 41.48 31.30 3.1 16.7 127
AngloAmer@ 1.9k -34 2.96k 1.72k 2.8 9.2 5087 Rentokil 87.95 +.4 90.65 57.55 2.3 17 6447 B n 5 48 40 M n 89 8 45 3 0 D m AG 20 8 36 03 0 34 M d M 32 3 95 +4 XcelEngy 28.06 +.07 29.92 24.83 3.8 15.1 284
Antofagsta@ 1.26k -9 1.4k 972 2.2 13.5 2681 Resolution 218.30 +4.6 287.10 189.80 9.4 14.3 3899 p n 3 26 269
ARM 665 -10.5 688.50 463.60 0.6 59.4 10206 C m 9 3 30 0 26 HSBC 80 608 80 2 80 A M 204 3 43 0 9 NEC 32 0 53 +2 Xerox Cp 6.30 -.19 8.83 6.30 2.7 7.1 720
REXAM 446.70 -2.5 463.90 320.80 3.3 14.5 2902 Hun n n 92 6 39 +0 06 TV 0 86 55 +0 80 V w nP d 96 8 59 60 0 45 Sh p C p 30 2 2 V um und d n m n XL Grp 24.69 -.08 25.77 18.69 1.8 - 294
AscBrFd 1.39k -4 1.41k 1.07k 1.8 20 1321 Rightmove 1.61kxd -1 1.71k 1.17k 1.2 30.7 202
Ashmore 363.70 -1.9 406 300.30 4.1 13.5 1806 Xylem 24.12xd +.53 28.83 22.45 1.7 17 132
AstraZen @ 2.88k -41 3.12k 2.58k 6.8 8 2373
RioTinto @ 3.1k -38 4.03k 2.65k 3.3 7 6385
B GGEST MOVERS B GGEST MOVERS B GGEST MOVERS B GGEST MOVERS n MAJOR ND CES H GHS & LOWS Yum!Brands@69.98xd +.08 74.43 52.16 1.7 20.6 236
RIT Cap 1.11k -10 1.38k 1.08k 2.5 - 120
Aviva 331.40xd -2.9 385.10 251.10 7.8 - 12117 RndgldRs 7.4k +150 7.89k 4.48k 0.3 27.8 596 O 31 D D ZimmerHld 63.78 +.23 69 47.01 0.8 14.9 192
Babcock 978 +7.5 986.50 660 2.3 23.1 1236 W dn d C D D W dn d C D D W dn d C D D W dn d C D D
RollsRyc @854.50xc -5.5 889.51 642.74 1.8 13.2 6174 p h n hn % p h n hn % p h n hn % p h n hn % Op n C h h w
BAE SYS 312.20xd -.4 367.50 248.95 6.1 7.6 5208 Rotork 2.28k -2 2.41k 1.59k 1.7 22.9 130
BalfourB 315.20xd +.1 319.90 214.89 4.5 12.5 1385 RSA Ins 112.30xd - 121.73 97 8.2 13 12504
Up
G n M 25 30 2 02 +8 68
Up
&C A 99 00 4 45 +4
Up
u h n R 9 +0 8 + 33
Up
u H 6 48 +6 68 N m
NASDAQ
Barclays @ 227.50 -11.3 288 147.90 2.6 7.2 130363 (Oct 31 / 1:00 pm/US$)
RylDShlA @ 2.13k -15.5 2.81k 1.95k 4.6 9.3 3548 G nw h n 5 94 0 46 +8 39 S m P 39 00 30 +4 56 nd 8 36 +0 25 +3 02 A N PPON AW 69 9 +5 63
Berkeley 1.52k +1 1.55k 1.17k - 15.6 418
RylDShlB 2.19k -13 2.93k 2.02k 4.8 9.6 3544 dM 09 0 66 +6 40 p 208 90 8 90 +4 45 P h 5 22 + 2 +2 53 Sh n B n 6 +5 4 ActivBlz 10.89 +.1 14.40 10.73 1.7 15.4 3226
BG @ 1.15k -182 1.55k 1.05k 1.4 17.6 134741
SABMiller @ 2.65k -15 2.89k 2.08k 2.4 22.3 4252 Offi D p 25 0 2 +5 02 E En 36 90 5 40 +4 C C HBC 6 50 +0 40 +2 48 ME DENSHA 28 4 +5 24 Adobe 33.92 -.09 34.78 25.72 - 18.7 2340
BHP Bltn 1.99k -24.5 2.24k 1.62k 3.9 12 9459
Sage 310.70 -1 326.30 245.30 3.4 15.8 5678 Amazon @ 231.42 -6.82 264.11 166.97 - - 3031
BlckRckWld 582.50 +2.5 750.44 524 1.2 27.4 438 D wn D wn D wn D wn
Sainsbry 354.60 -.3 362.20 278.60 4.5 12.8 5862 Amgen @ 86.67 -.96 89.95 54.59 1.7 15.5 1938
Booker Grp 102.50xd +.5 102.80 69.40 2.3 21.6 2413 W n Un n 2 80 5 3 28 6 BG 4 50 82 3 69 A M 43 0 9 6 43 R COH 66 2 3 05
SchrdrsNV 1.24k +15 1.32k 950 3.2 11.6 60
BP @ 443.30 +.45 554 359.90 4.8 6.9 60748
Schroders 1.52k +4 1.66k 1.16k 2.6 14.4 352
V n 36 68 2 2 6 89 N wW dR 256 50 4 90 5 49 M dC 54 9 25 4 43 M ubH 336 0 2 89 AnalogDev 39.09 +.05 41.79 32.18 2.9 18.2 1020
BrAmTob @ 3.07k -43 3.51k 2.78k 4.3 17.7 5445
ScottMort 707 -1 727 560.06 1.9 47.9 117
DS Un ph 9 62 0 68 G Ah d 298 00 5 5 46 3 6 0 4 33 Sh n & 324 26 93 ApolloGp 19.95 +.23 58.29 19.18 - 6.2 1441
BritLand 528.50xd -6.5 554.50 443.40 4.1 17.5 4230
SEGRO 237.60 -2.1 260.20 193.90 5.6 9.3 2498
B du 0 32 6 52 5 3 B 22 50 30 4 3 G p 2 35 0 40 3 4 CAS O COMPUTER 60 2 93 AppldMat 10.59 -.06 13.94 9.97 3.3 12.8 6823
BSkyB @ 709xd -3.5 775.85 628.76 3.6 13.5 3872 N
Serco 566.50 -6.5 606 454.70 1.5 17.2 941 Apple @ 595.92 -8.08 705.07 363.32 0.9 13.5 12036
BT @ 212.50 -3.1 242.30 174.40 3.9 7.9 35944
Bumi 238.20 -1 941 119.54 - - 359
SevernTr 1.61k -45 1.84k 1.4k 8.3 18.5 2227 Western Un on BG Gp Lufthansa Reg Fu H M
Autodesk 31.96 -.35 42.69 27.70 - 25.7 2365
Shaftbry 548 +2 568 450.10 1.7 - 923 Sh P Sh P C Sh P Sh P BedBathB 57.53 +.08 75.84 56.72 - 13.4 1482
Bunzl 1.03k -1 1.17k 768.50 2.6 16.7 901
Shire 1.74k -14 2.32k 1.68k 0.6 17.2 3010
C
Burberry 1.17k -14 1.61k 998 2.1 18.8 1917 Biogen @ 139.28 -3.65 157.18 106.31 - 24.2 1060
SmithNph 655 -1.5 726.50 515 2.2 19.8 2233 C C
bwin.party 119.90 +.3 177 91.05 2.7 10.3 3108 0 BMCSware 40.85 -.13 45.70 31.62 - 19.3 659
CairnEng 280.30 +1.3 364.90 245.20 - - 2807
Smiths 1.06kxd +4 1.12k 851.50 3.6 17.3 2192 n NYSE R SES AND FALLS Broadcom 31.62 -.14 39.66 27.59 1.2 25 2832
Spectris 1.73kxd +9 1.93k 1.12k 2.3 15.5 625 0 00 O O 0 O CA Inc 22.40 -.33 28 19.54 3.6 11.4 2726
Cap&Count 226.20 -.3 232.80 165.60 0.7 9.7 463
Spirax-S 1.94kxd -19 2.36k 1.7k 2.5 17.2 174
Capita 723 -7.5 788 600 3.1 17.2 2618 Celgene @ 73.51 -1.69 81.24 58.53 - 20.4 1192
SportsDirect 398.90 +1 417.46 187.93 - 21.5 120
CapShopCn 333xd -1.9 354.80 283.20 4.1 - 1408 CH Rob 60.65 +1.24 71.76 50.81 2.2 22.1 759
SSE @ 1.45k +5 1.47k 1.2k 5.5 20.8 1404 0 0
Carillion 307.80xd -1.4 359.04 232.17 5.5 9.1 3233 CheckPnt 44.36 +.09 65 40.60 - 15.5 1194
St Jms Pl 397 +17.3 400.90 292.30 2.3 18.6 556
Carnival 2.46k -42 2.52k 1.6k 2.8 19.3 1592 R 0 Cisco @ 17.22 -.07 21.30 14.96 2.1 11.6 22140
Stagech 274.40 +3.7 300 227.90 2.8 9.8 1725
CatlinGrp 471.20 -.6 491.70 365 5.4 4.7 916
StandardLf 292xd +6.4 295.70 181.82 4.8 19.5 8602 Citrix 62.65 -.17 87.99 56.79 - 34.1 1344
Centrica @324.10xd -.2 341.80 248.40 4.9 14.8 12465
StandCh @ 1.46k -20 1.66k 1.09k 3.7 11.3 7311 U 0 CmcstASp 36.33 -.18 36.87 20.69 1.8 - 2117
Cobham 215xd -1.8 242.70 163.60 4 14 3045
TalkTalk 190 -1.1 197.20 116.30 4.7 13.4 683 CME Group @55.78xa +.36 60.92 44.45 4 12.5 1050
Compass @ 680 -7 728 544.74 2.9 17.3 4518 N wH
Tate&Lyl 726 +2 729.53 621.95 3.4 13.7 1299 Cognizant @ 66.68 -.05 78 53.92 - 21.4 1866
Cookson 582.50 -3 755 398 3.8 9.6 1375
Taylor Wmpy 61.10 +.45 61.71 34.36 0.9 10.8 12581 S p 30 20 2 20 2 O 3 S p 30 20 2 20 2 O 3 S p 30 20 2 20 2 O 3 S p 30 20 2 20 2 O 3 N w w ComcastA @ 37.30 -.26 37.85 20.90 1.7 17 9675
CRH 1.15k +7 1.41k 11.87 4.4 17.4 2715
Croda 2.2k -64 2.5k 1.62k 2.6 17.4 1165 TelecityG 901.50 -18.5 963.50 566.50 0.3 34.9 364 Costco @ 98.04 +1.1 104.43 78.81 1.1 25.2 1813
Daily Mail 477.25 +4 510.50 361.40 3.6 9.8 676 TemptnEm 561 +.5 635.50 502.50 1 71.1 507
52 week Vol 52 week Vol 52 week Vol 52 week Vol 52 week Vol Dell 9.19 -.05 18.36 9.18 0.9 - 8467
Diageo @ 1.77k -9 1.81k 1.23k 2.5 23.9 3008 Tesco @319.85xd +1.05 413.05 294.50 4.6 10.7 38133
TravisPkn 1.08kxd -5 1.14k 742.50 2 10.6 678 Stock Price Chng High Low Yld P/e ’000s Stock Price Chng High Low Yld P/e ’000s Stock Price Chng High Low Yld P/e ’000s Stock Price Chng High Low Yld P/e ’000s Stock Price Chng High Low Yld P/e ’000s DirectTV @ 51.03 -.24 55.17 41.45 - 13.2 1306
Drax Group 561.50 +2.5 589 390 4.7 4.6 1293 EBay @ 48.40 -1.11 50.94 28.15 - 16.5 11535
DrwntLdn 2.06kxd -8 2.08k 1.48k 1.4 - 196 TUI Travel 251 +.9 257.30 134.30 4.5 13 2490
Tullow @ 1.4k +22 1.61k 1.23k 0.9 28.8 6260 ElectArt 12.18 +.27 26.13 10.77 - - 4418
easyJet 625 +6 629.50 337.93 7.4 11.9 1520
UBM 699.50 +8 737 444.89 3.8 21.2 1295 Expedia 59.46 +.4 60.29 23.93 0.8 23.3 2142
ENRC 327.70 -6.8 759 293.60 3.7 5.3 3351 BerkHatA @ 129.98k +253 136.34k 110.23k - 18.4 Deere @ 85.11xd -.36 89.69 69.51 2.1 11.3 490 Medtronic @ 41.50 -.1 44.79 33.12 2.4 12.6 685 Red Hat 49.27 -1 62.72 39.19 - 65.9 113
Unilever 2.31k -15 2.35k 1.97k 3.3 20 3561 HomeDep @ 61.46 +1.42 63.20 34.80 1.9 22 1988 ExpIntWsh 36.53 +.1 47.48 34.20 1.5 21.7 816
EssarEngy 136.90 +5.4 327.65 98.13 - - 2766 BerkHB 86.62 -.04 90.92 72.60 - 18.4 612 DenburyRs 15.25 +.02 21.36 13.14 - 9.5 586 Merck @ 45.53 -.62 48 33.13 3.7 20.7 1458 Reg.Financ. 6.45 -.13 7.73 3.51 0.6 14.2 1418
UtdUtils 677 -18 816 583.50 4.7 14.5 9034 Honywell @ 61.30 -.19 63.48 48.82 2.5 20.5 429 ExpScripts @ 61.51 -.73 66.06 41.45 - 30.6 5321
EVRAZ 236.20 -1.7 465.40 206.80 3.2 28.7 1375 Best Buy 15.26 +.3 28.52 14.71 4.3 - 412 DevonEngy @ 58.22 -.07 76.33 54.02 1.4 9.8 285 MetLife @ 35.35 +.13 39.54 27.65 2.1 5.6 618 RepSrv 28.45 +.23 31.31 25.15 3.1 15.6 199
Vedanta 1.13k -16 1.56k 820.52 3.3 27.8 1440 HormelFd 29.53xd +.19 30.70 27.28 2 16.4 112 Facebook 21.14 -.81 45 17.55 - - 75583
Experian 1.07k -6 1.1k 760 1.9 25.8 2372 BkNYMeln @24.58xd +.21 25.25 17.68 2.1 12.8 548 DiamOfsh 69.11xd -.91 73.35 52.98 5.1 12.8 193 MGM Rsts 10.15 -.44 14.94 8.84 - - 1569 ReynoldsAm@ 41.58 +.28 46.91 37.77 5.5 15.7 361
Vodafone @ 168.25 -2.8 191.94 164.12 5.4 11.6 112654 HortonDR 20.77 +.01 22.78 10.75 0.7 8.2 405
Ferrexpo 208.90 +8.9 370 138.70 2 4.7 4819 BlackRock @ 189.03 +2.04 207.30 149.84 3.1 14.6 66 DiscvrFin 40.39 +.14 40.86 22.48 1 9.3 274 Mohawk 82.64 +2.37 83.61 49.03 0 28.1 96 Rockwell 70.61 +1.25 84.62 61.21 2.5 13.7 89 Fifth 3rd 14.46 -.03 16.16 10.89 2.4 9.4 3025
Weir 1.74kxd -22 2.24k 1.35k 1.9 12.1 1952 Hospira 30.68 -.28 38.48 26.92 - - 155
FirstGrp 190.50 -1.2 350 183.51 12.4 4.2 2560 Blackstone 15.37 +.02 17.25 11.13 3.4 - 253 Disney @ 49.11 -.97 53.40 33.29 1.2 16.2 2233 MolsonB 43.09 -.37 46.35 37.96 3 14.4 210 RockwlColl 53.39 -.91 61.46 46.40 2.1 12.8 160 First Solar 24.05 +.08 52.70 11.43 - - 1236
Whitbrd 2.35k +10 2.41k 1.47k 2.3 15.6 1033 Host H&R 14.45 -.34 17.57 12.58 1.8 - 770
For & Col 311.20 -2.9 320.20 269.10 1.9 44 520 Block 17.77 +.02 18.04 14.36 4.5 14.7 239 DominRes @ 52.45 +.38 55.62 48.87 4 25.4 380 Monsanto @ 86 -.6 92.18 67.11 1.5 22.8 321 RoperInd 109.06 +.26 111.64 77.99 0.5 23.5 55 Fiserv 75.12 -.13 76.25 53.91 - 17.8 652
Willim H 338xd -2.3 359.30 133.50 3 13.2 4890 Humana 73.99 -.48 96.45 59.92 1.4 9.8 179
Fresnillo @ 1.92k +28 2k 1.26k 3.5 28.4 1203 Boeing @ 70.43 -.68 77.83 62.12 2.5 12.4 417 Dover 58.36 +.59 67.20 50.16 2.2 12.6 132 Moodys 48.09 +.2 49.50 31.41 1.3 17.4 171 Safeway 16.44 +.06 23.16 14.73 3.9 8.8 303 Fossil 87.24 - 139.20 62.77 - 18.1 331
Wolseley 2.71kxd -31 2.85k 1.7k 2.2 16.9 1937 IBM @ 195.15 +1.88 211.76 177.06 1.7 14 663
G4S 260.50 -.4 293.40 229.50 3.3 27.6 7067 BorgWrnr 65.84 +2.13 87.40 60.18 0.5 14.9 502 DowChem @ 29.18 -.39 36.08 24.43 3.9 22.5 690 MorganStly @ 17.38xd +.34 21.19 12.26 1.2 - 1934 SAIC 10.87 +.07 14.20 10.31 3.3 - 218 Garmin 38.25 -.74 50.67 33.42 4.6 12.7 1354
Wood (J) 849.50 +1.5 883.50 571 1.2 30.5 1050 IllinoisTool @ 61.26 +.99 62.07 42.44 2.4 14.9 397
GKN 207.60 -2.5 242.10 164.80 3.1 9.6 7953 BostonPrp 106.18 -.35 117 88.40 2.1 54.3 95 DrPepper 42.84 +.08 45.85 34.68 3.1 14.7 125 Mosaic @52.42xd -.36 61.97 44.43 1.3 12.4 264 Salesforce @ 145.76 -.89 164.75 94.09 - - 154
WPP 799.50xd +4 884.50 585.90 3.2 11.4 6690 IngersollR 46.92 +.54 47.71 29.07 1.4 14.2 245 GileadSci @ 66.82 -.25 70.39 34.45 - 20.9 2809
GlaxoSmh @ 1.39k -33.5 1.56k 1.32k 5.2 13.6 18458 BostonSci 5.09 -.08 6.41 4.79 - - 567 DTE Engy 61.90 +.24 62.54 49.06 3.8 15.6 65 MotorolaSol 51.77 +.15 52.78 43.42 1.9 22 226 Schlmbrg @ 69.10 -1 80.78 59.12 1.6 16.9 1068
Xstrata @ 979.10 -2.7 1.29k 648 2.6 9.3 5303 Int.Paper 35.55 -.11 38.41 25.36 3.1 19.3 335 Google @ 677.57 +2.42 774.38 556.52 - 21.2 880
Glencore @ 343.05 -.85 484 289.35 2.8 11.2 11381 BrisMySq @33.18xd -.44 36.34 30.10 4.1 30.3 765 DukeEner @65.46xa +.35 70.35 58.74 4.6 19.5 280 MurphyOil 60.12 +.31 65.60 43.29 6.1 14.5 328 ScrippsNtwk 60.97 -.18 66.33 37.02 0.8 19.4 139
Intercont 131.25 +.06 142.75 110.67 - 17.5 102 Hasbro 36.21xd -.14 39.98 31.51 3.8 14.1 1365
Halma 412.40 -1.4 456.30 309.10 2.4 18.7 746 Brwn-FmnB 63.41 -.19 67.87 48.47 1.5 25.1 25 DuPont @ 44.55 -.63 53.98 43.06 3.8 14.1 606 Nabors 13.51 -.17 22.73 12.40 - 19.9 383 Sempra 69.56 +.58 72.28 50.54 3.3 19 133
Interpubl. 10.10 -.19 12.17 8.28 2.4 14.3 668 Intel @ 21.70 -.25 29.27 21.22 4 9.5 22608
Hammersn 471.80
Hargr Lans 738
-3.2 483.50
- 762.50
339.20
404.72
3
3.1
27.3 2520
30.5 811 NYSE Cameron
Campbell
48.99 -2.25 59.99 38.38 - 21.2 641 Eaton
35.17 +.45 36.28 31.22 3.3 14.6 250 Ecolab
46.78
@ 69.19
+1.66 53.05
-.37 69.97
36.38
52.27
3.2
1.2
11.2
35.9
841
171
IntlFl&Fr 63.94 - 64.97 51.21 2 19 48
NewelRbm 20.69
NewmontM @ 54.12 +.81
+.1 21.20 14.22 1.7 16 310 SherWil
72.41 42.95 2.6
142.05
- 383 SimonProp @ 151.23
+2.42 156.49 80.28 1.1 25.8 137
+.93 164.11 115.02 2.8 30.5 120 Intuit 59.31 -.08 62.33 48.91 1 23.9 778
HikmaPhm 739.50 -7.5 785 580.36 1.3 25.2 318 (Oct 31 / 1:00 pm/US$) IntlGmeT 12.84 +.17 18.17 10.92 1.9 17.4 179
CapOne @ 59.73 -.27 61.33 39.30 0.3 9.8 294 EdsnInt 46.92 +.35 47.96 37.51 2.8 - 155 NextEraE @ 69.71 +.19 72.22 52.32 3.4 13.6 178 SouthCpr @ 38.03 +.06 38.20 27.24 9.7 16.7 375 IntuitSrg @ 541.90 +6.06 594.89 410.37 - 35 207
Hiscox 480.40 +1.2 497 357 3.7 9.6 616 3M @ 87.57 -.46 95.46 75.49 2.6 14 394 INVESCO 24.20 -.05 26.94 17.74 2.4 15.4 656
CardinalH 41.08 +.65 45.08 36.93 2.3 12.9 412 EdwLifesc 86.17 -.98 110.79 61.59 - 38.5 128 Nike @ 90.99 -.16 114.76 85.10 1.6 19.8 245 Southern @ 46.68 +.35 48.58 42.12 4.2 18.8 400 KLA Tenc. 46.33 -.31 55.43 42.08 3.1 11.3 1273
Hochschild 495 +5 543.76 364.74 0.8 27.1 214 AbbottLb @65.47xd -.01 72.47 52.05 3.1 15.9 1060 IronMount 34.37xa +.38 34.81 24.17 14.8 32.7 141
Carefsn 26.50 -.04 28.98 22.55 - 16 228 EMC @ 24.37 +.46 30 21.26 - 20 2220 NiSource 25.35xd -.11 26.15 21.17 3.7 23 224 SpectraEn @ 28.74 -.28 32.26 27.36 3.9 17.4 361 LibIntCpA 19.93 -.1 20.46 13 - - 2221
HSBC @608.80xd -2.8 620.31 456.35 4.6 15.2 28478 Accenture @ 67.29xd +.18 71.58 51.08 2.2 17.5 423 JacobsE 38.73 +.3 48.15 33.61 - 13.6 117
Carmax 33.48 -.09 35.17 24.84 - 18.9 111 Emerson @ 48.40 +.56 53.78 43.59 3.3 14.8 391 NobleCp 37.59 -.5 41.71 28.74 1.4 18.4 303 SprintNext 5.54 +.05 6.04 2.10 0.5 - 2439 LifeTch 48.54 -.2 50.99 36.07 - 20.1 468
Hunting 748.50xd -5.5 977 605 2.1 19 1082 ACE @ 78.56 -.79 82.07 64.09 2.1 10 247 Carnival @ 37.91 +.06 39.40 29.15 2.6 20.8 454 Entergy 72.56 +.46 74 62.97 4.6 13 175 JMSmckr 85.01 -.02 87.80 70.51 2.4 21 42 NobleEgy 94.59 +.14 105.43 76.83 1 44 215 Starwood 51.40 -.55 61.09 43.36 2.4 18 331
AdvMicroD 2.10 +.03 8.34 2.03 - - 1238 John&John @ 70.70 -.2 72.74 61.05 3.4 23.2 1256 LinearTec 31.29 -.29 34.50 28.28 3.2 14.7 738
IAG 161.30 +2.7 219.34 130.97 - - 12176 Caterpillar @84.64xd +.39 116.95 78.25 2.3 8.7 758 EntPrdPrt 52.27xd -1.14 55.38 43.70 4.8 19.1 180 Nordstrom 56.28 +.51 58.43 44.22 1.8 17.8 217 StateSt @ 44.54 +.16 47.15 36.14 2 11.3 246
AEP @ 44.30 +.35 45.40 36.98 4.2 14.8 346 JohnsonCn @ 25.67 -.14 35.95 23.37 2.8 14.9 765 Marvell 7.93 +.18 16.86 7.32 1.5 10.2 5373
ICAP 325.10 +.4 431.67 299.70 6.8 9 3078 CBRE Gp 17.62 -.63 21.15 14.18 - 26.5 857 EOG Res @ 116.25 +2.16 119.90 82.49 0.6 22.7 227 NorfolkS @61.59xd -1.18 78.49 60.96 3.1 11.2 471 StJudeMed 38.12 -.17 44.79 32.13 2.4 16 658
IG Group 435.50 -2.1 505 407.20 5.2 11.5 947 AES Corp 10.42xd -.03 14.01 10.34 0.4 18 344 CBS @ 32.49 -.38 38.32 23.36 1.3 14.6 1031 EqResPrp 56.65 +.59 65.72 52.10 2.8 - 125 JPMrgnCh @ 41.61 +.45 46.49 28.32 2.8 8.8 1678 Northrop 68.70 +.68 71.25 52.69 3.1 8.9 324 Stryker @ 52.44 +.25 57.14 45.45 1.6 14.1 143 Mattel 36.73 -.12 37.96 27.13 3.4 15.2 965
ImgnTech 456.60 -13.4 734 392 - 59.9 605 Aetna 43.55 -.55 51.14 34.61 1.6 8.3 299 Centrpnt 21.55 +.08 21.75 18.08 3.8 11.9 207 EQT 60.79 -1.63 65.29 43.70 1.4 40.4 325 JuniperNtw 16.54 -.04 25.35 14.01 - 47.1 551 NtlOilVarc @ 72.99 -1.58 89.25 59.07 0.7 13 640 Suntrust 27.11 +.01 30.79 15.79 0.7 8.8 408 MaximInt 27.65 -.12 30 23.55 3.3 23.7 1228
IMI 954.50 +9.5 1.03k 681.50 3.2 14.3 1818 AFLAC @ 49.73 +.15 50.46 38.14 2.7 8.2 212 CenturyLk @ 38.47 -.09 43.43 34.13 7.5 45.6 550 EsteeLdrA 61.57 +.78 65.53 47.29 0.9 28.5 262 Kellogg @ 52.62 -.28 54.82 46.33 3.3 16 300 Nucor 40.13xd -.09 45.75 34.24 3.6 25.3 329 SW Airl. 8.77 +.03 10.05 7.37 0.3 13.7 329 MicronT 5.40 -.07 9.16 5.06 - - 10570
ImpTob @ 2.34k -30 2.63k 2.21k 4.5 12.2 4712 AgilentTec 36.01 +.07 46.28 32.51 0.8 12.5 244 CharlesSch 13.50 +.03 15.53 10.68 1.8 20.1 1012 Exelon @ 35.63 +.14 45.45 34.54 5.5 14.7 862 Keycorp 8.40 +.01 9.09 6.60 1.9 9.5 784 NYSE Eurnxt 24.63 -.21 31.25 23.31 4.9 12.3 291 SwestEgy 34.74 +.6 43.69 25.63 - - 755 Microsoft @ 28.60 +.39 32.95 24.30 2.9 15.5 42872
Inchcape 402 +4.4 426.60 276.20 2.8 11.6 2385 AGL Res 40.37 +.09 57.11 36.59 4.5 23.3 56 ChesapEgy 20.33 +.23 29.65 13.32 1.7 6.7 1194 ExxonMob @ 90.46 -.16 93.60 73.90 2.3 9.5 1367 Kimb-Clark @ 83.22 +.47 88 68.27 3.5 17.5 236 OccidPet @ 79 -1.44 106.67 76.60 2.7 10.9 753 Sysco @ 31 +.14 31.90 26.87 3.5 16.3 251 MondelezInt@ 26.49 -.11 28.48 22.33 4.4 13.1 5923
Informa 400.20 +4.6 453.40 325.40 4.4 37.7 3186 Airgas 88.15 +1.41 92.99 66.91 1.6 20.7 81 Chevron @ 109.53 -1.65 118.50 92.29 3.1 8.2 668 Fedex @ 91.72 +1.03 97.19 76.07 0.6 14.3 167 Kimco Real 19.52 -.11 21.15 14.58 4 60.7 387 Omnicom 47.63 -.48 54.75 39.74 2.4 13.9 144 TargetCp @ 63.58 -.34 65.79 47.25 2.1 14.6 605 Netapp 27.05 -.83 46.80 26.99 - 19.2 4913
Inmarsat 566.50 +1 613.14 361.68 5.1 11.2 1131 AirProd 77.49xd -.43 92.78 76.15 3.2 16.6 218 ChipMexG 252.86 +1.34 442.34 234 - 29.4 46 FidltyNFn 21.30 -.06 23.26 14.75 2.5 12.6 318 KindMnE 83.30xd -2.06 90.60 73.84 5.8 53.9 114 ONEOK 46.97 -.17 89.62 39.32 2.7 29 131 TE Conn 32.19 -.03 37.68 29.70 2.4 12.7 171
KohlsCp 52.92 +.58 56.65 42.73 2.3 12.5 396 NewsCorpA@ 23.93 +.14 25.50 15.93 0.7 54.4 7123
InterC Htls 1.53kxa -25 1.76k 982.14 9.8 12.9 931 Alcoa 8.62xd -.03 11.30 7.97 1.4 - 978 Chubb @ 77.46 -.5 81.80 63.28 2.1 11.2 268 FirstEgy @ 45.76 +.13 51.13 40.37 4.8 16.7 319 ParkHn 78.64 +1.06 91.44 70.49 2.1 11.1 153 Teradata 67.61 -.09 80.97 43.78 - 29.9 308
Kroger 25.33 +.15 25.44 20.99 2 22.4 379 NewsCorpB 24.36 +.15 25.96 16.18 0.7 - 1277
Intertek 2.82kxd -21 2.94k 1.8k 1.3 26.7 404 Allergan @ 89.06 -2.58 97.09 78.44 0.2 26 392 Cigna 50 +.3 50.67 39.34 0.1 11.4 239 Flowsrve 135.22 +4.29 137.82 87.41 1 16.9 88 PeabdyEngy 28.01xd -.21 45.64 18.78 1.2 9.5 502 Teva 40.48 +.09 46.65 36.88 2.4 11.4 276
Allstate @ 39.99 -.16 42.81 24.50 2.2 9.7 774 L3 Comms 73.64 +.22 75 59.91 2.7 8.1 39 NII Hldgs 7.80 +.53 24.92 5.65 - - 3444
Invensys 227.80 -.3 279.80 166.80 1.9 15.1 2610 Citigroup @ 37.17 +.57 38.71 23.30 0.1 15.6 2165 Fluor 55.99 +.68 64.65 44.99 1.1 15.8 221 Penney 24.11 -1.35 43.18 19.06 2.5 - 518 Textron 25.31 -.25 29.18 16.87 0.3 18 262
Investec 364.40 -1.6 419.10 308.90 4.7 11.6 1680 Altria @ 31.87 +.11 36.29 26.96 5.2 16.6 1138 CliffsNat 36.36 -.13 78.85 32.25 5 5.6 831 FMC Tech 40.46 +.02 55.17 36.89 - 23.9 357 LabCpAmer 84.59 -.36 95.30 79.08 - 13.9 77 Pepsico @ 69.29 +.31 73.65 61.57 3 18.4 800 TheTrvelers @ 70.51 -1.05 74.70 52.51 2.5 10.1 431 NorthnTst 47.61 +.44 49.68 34.87 2.4 17.8 611
ITV 86.55xd +.8 93.20 58.49 2.3 12.3 28945 Amer Intl @ 34.65 -.07 37.66 20 35.8 3.1 1589 Clorox 71.68xd -.42 75.90 63.07 3.5 17.5 119 Ford @ 10.97xd +.61 13.05 8.82 1.8 2.5 11958 LasVegasSd@ 45.96 -.01 62.08 34.72 1.6 26.6 476 Pfizer @ 24.99 -.44 26.08 18.15 3.5 18.9 2935 ThrmoFshr @ 61.01 -.03 61.98 43.40 0.6 19.5 254 Nvidia 12.06 +.01 16.90 11.63 - 15.7 4816
JardineL 743.50 +7.5 798.50 628.43 3.3 17.7 258 Ameren Cp 32.91 +.58 34.84 30.79 4.9 69 205 CMS Egy 24.17xd -.05 24.98 19.57 4 18.6 309 ForestLabs 33.70 -.47 37.69 28.47 - 16.5 181 Lennar 37.15 +.13 39.24 15.62 0.4 13.9 421 PG&E @ 42.49 +.49 47.02 36.85 4.3 19.7 273 Tiffany 62.74 +.17 80.93 49.73 1.9 18.2 112 Oracle @30.99xd - 33.76 24.91 0.8 15.4 11771
JohnsoM 2.25k -11 2.58k 1.69k 7 14.5 523 AmerExpr @55.75xd - 61.42 44.70 1.4 12.9 511 CNA Fin 29.47 +.74 31.50 23.98 2 9.6 32 Franklin @ 127.98 -.02 133.89 89.30 2.4 14.3 76 Leucadia 22.64 +.13 29.79 19.58 1.1 53.2 116 Phillips66 47.52xd +.02 48.39 28.75 0.9 6.2 439 TimeWrnr @ 43.05 -.59 46.59 32.09 2.4 16.8 712 PACCAR 43.29 -.05 48.22 35.21 1.8 13 1184
Kazakhmys 709 -20.5 1.22k 569 2.2 7 5915 Amerip Fin 58.11 -1.19 60.47 41.10 2.5 15.5 353 CnstelBdA 35.34 -.21 36.98 17.95 - 17.5 181 Freeport @38.92xd -.15 48.96 31.08 3.1 12.6 780 Lilly (E) @ 48.66 -1.55 53.96 35.46 4 13.2 1210 PhilMorris @ 88.54 +.26 94.13 68.08 3.6 17.7 695 TimeWrnrC @ 99 -.52 100.50 57.19 2.3 18.3 141 Paychex 32.31xd -.62 34.70 27.11 4 21.3 1123
Kenmr 39.41 +.41 62.55 30.11 - 19.4 3524 Amertitrad 15.64 -.24 20.59 14.87 1.7 14.8 531 Coach 55.67 -.22 79.64 48.24 1.9 15.6 462 GAP 35.40 -.01 37.85 17.62 1.4 19.8 416 Lim.Brands 47.63 +.03 52.20 37.58 8.3 20 194 PinnWstCp 53.04xd +.18 54.66 43.99 4 15.6 68 TJX @ 41.34 +.61 46.67 28.61 1.1 21.1 634 Prclne.cm @ 575.18 -4.28 774.96 438.76 - 24 543
Kingfshr 289.50xd +3.6 317 235.68 3.3 11.4 9437 AmerTwrA @ 74.57 +1.2 76.15 52.71 1.4 65.1 301 Coca Cola @ 37.09xc +.05 40.66 32.37 2.8 19.4 1382 GenDyn @ 67.75xd +.43 74.49 60.60 3 9.9 190 LincolnNat 24.65xd -.03 27.54 17.55 1.3 39.5 421 PionrNat 105.21 +1.58 119.19 77.44 0.1 39.5 200 Torchmrk 50.32xd -.14 53.12 39.34 1.1 9.9 67 Qualcomm @ 58.60 -.44 68.87 49.78 1.6 19.8 6390
Ladbrokes 179.20 -.1 187.40 120 4.6 9 4127 AmsrceBrgn 39.62 +.28 41.93 35.48 1.3 15.9 240 CocaCoEnt 31.24 +.27 32.54 24.22 2 13.8 375 GenElectr @ 21.04 -.07 23.18 14.68 3.2 15.6 4494 Lockheed @ 93.62 +.78 94.96 72.46 4.4 10.7 164 Plum Creek 43.75 -.06 44.99 34.29 3.8 38.2 143 TotalSys 22.53 +.07 25 18.72 1.8 17.6 135 RschMt 7.85 +.28 21.19 6.22 - - 6905
LandSecs 804 -5.5 818.50 608 2.9 17.7 3036 Anadarko @ 68.45 +1.96 88.68 56.42 0.5 18.9 703 ColgPalm @104.62xd +.75 110.95 86.20 2.3 20.5 322 GenMills @39.88xd +.03 41.06 36.75 3.2 15.6 640 Loews 42.32 -.07 43.36 35.59 0.6 19.4 123 PNCFin @ 57.93xd +.17 67.88 48.87 2.7 11.7 323 TrnsOcean 45.45 -.93 59.24 38.22 5.2 - 259
AOL 34.13 -.35 37.94 13.17 15.1 3.2 183 Lorilliard 116.10 +1.53 141.07 106.49 5.1 13.9 137 SeagateT 27.10 -.81 35.71 15 3.7 4.2 8206
Leg&Gen 134 +.7 138.72 94.65 5 10.1 23047 Comerica 29.68 +.46 34 22.83 1.7 12 231 GenMot @ 25.30 +2.02 27.67 18.72 3 9 2853 PP&L 29.51 +.02 30.27 26.68 4.8 10 298 TycoInt @26.81xd -.06 29.26 21.50 3.4 9.6 350
LlydsBkg @ 40.58 -.53 43.36 21.64 - - 236308 Aon Cp 53.81xd -.03 54.54 43.37 1.2 18.7 343 CompSci 30.21 -.38 34.74 22.19 2.6 - 94 GenuineP 61.89 +.65 66.50 54.16 3.1 15.6 57 Lowe’s @ 32.41xd +1.05 33.29 20.36 1.9 21.4 1746 PPG Inds 116.48 +.36 120 78.80 2 19.5 95 UnionPac @ 122.90 -.71 129.27 95.07 2 15.2 178 Sears Hld 62.32 -4.37 85.90 28.89 - - 448
Lonmin 513 -.5 1.15k 472.30 2 9.7 2604 Apache @82.38xd +.02 112.08 77.95 0.8 9.9 269 ConagraFds 27.90xd -.31 28.79 23.64 3.5 18.4 339 GoldmSchs @ 122.35 +2.91 128.70 86.90 1.4 11.8 355 LSI 6.83 -.05 9.20 5.06 - 21.5 856 Praxair @ 106.03 +.73 116.92 93.46 2.1 18.9 202 UNUM Grp 20.23xd -.19 24.81 18.28 2.3 27.7 310 SiriusXM 2.76 -.06 2.97 1.61 - 5.3 34314
LSE 975.50 -1 1.11k 751 2.9 11.9 725 ArcherDan @ 26.64 -.41 33.98 25.03 2.6 18.7 831 ConocPhil @ 57.65xd +.34 59.67 50.41 4.6 10.4 782 Grainger 202.15 +4.67 221.79 166.67 1.4 21.5 73 M&TBkCp 103.56 +.12 105.33 67.23 2.7 16.1 153 PrecParts @ 172.43 +2.24 179.45 150.70 0.1 19 124 UPS B @ 73.22 +.2 81.79 66.46 3 21.1 323 SLM Cp 17.49 - 17.65 11.97 2.7 8.1 1703
Man 78.45 -3.7 152.91 61.10 14.5 17.6 26091 AT&T @34.62xd -.01 38.58 27.41 5.1 44.9 1650 ConsEdsn 35.57 +.38 45.44 26.42 1.4 18.8 532 Halliburton @ 32.01 -.39 40.42 26.29 1.1 10.2 905 Macys 37.97 -.51 42.17 28.70 2.1 12 471 PrinFinGp 27.54 -.16 29.95 21.42 2.8 12.4 280 USBancorp @ 33.16 +.01 35.46 23.74 2.1 11.8 931 Staples 11.45 +.01 16.93 10.57 3.8 8.7 3549
Marks&Sp 393.80 -1.3 397.60 300.51 4.3 10.8 7662 AutoZone 372.12 +1.37 399.10 313.26 - 15.8 29 ConsolEd 60.19 +.22 65.98 56.07 4 16.7 204 HarleyDavid 46.51 +.39 54.31 34.43 1.3 17.6 203 MarathonOil@ 30.01 +.1 35.49 23.17 2.2 12.1 353 ProctGmbl @69.19xd -.25 70.83 59.08 3.2 22.6 1190 UtdHlthcre @ 55.70 -.08 60.75 43.42 1.4 10.6 418 Starbucks @ 45.32 -.55 62 40.55 1.5 25.3 5333
Meggitt 386 -1.5 416.60 335.10 2.8 15.3 1862 AvalnbyCom 134.50 +1.43 151.11 116.27 2.8 50.7 58 CooperInd 74.63xd +1.2 76.55 50.21 1.5 17.3 695 Harris 45.93 -1.21 52.22 33.25 3 38.9 84 Marriott 36.30 -.52 41.84 27.53 1.3 22.8 327 ProgreOh 22.45 -.13 23.41 17.57 6.3 15 664 UtdTech @ 78.21 +.01 87.50 70.63 2.6 13.5 422 Symantec 18.15 -.25 19.54 13.06 - 11.4 5929
Melrose 241xr +2.5 261.50 177.34 3.1 24.9 2914 AvonProds 15.68 +.2 23.57 14.45 5.9 27.4 743 Corning @ 11.80 -.02 15.74 10.62 2.7 9.3 1219 Hartford 21.73 +.02 23.28 14.95 1.8 37.6 835 MarshMcL @33.89xd +.15 35.19 28.06 2.7 17.9 347 Prologis 33.80 -.11 37.58 24.91 3.3 - 296 ValeroE 28.96 -.07 34.35 19.12 2.2 14.5 1302 T.RowePr 64.50 -.33 66.66 49.35 2.1 20.1 667
Mlnm&Cth 502.50 -7 520 365.65 3.3 8.7 106 BakerHu @ 42.14 -1.28 59.83 37.09 1.4 13.4 410 CoventryHlt 43.61 -.28 44.11 27.72 0.9 13.5 82 HCP @ 44.24 +.22 47.64 35.84 4.5 29.7 305 MarthnPet @ 54.26 -1.35 60.04 30.24 2 7.7 440 Prudential @ 56.97 -.33 65.16 44.47 2.5 8.1 409 VarianMedS 66.72 -.21 71.94 52.90 - 17.7 321 TexasInstr @28.20xd -.72 34.24 26.06 2.6 18.3 5632
Mondi 682 +7.5 683.50 407.20 3.5 14 1597 Ball 42.90 +.09 43.77 32.81 0.9 16.2 62 Covidien @54.89xd +.11 60.80 41.69 1.7 14.2 254 Heinz @ 57.48 +.28 58.50 49.86 3.5 19 262 Masco Cp 15.04xd +.44 16.37 8.33 2 - 513 PublicSVC 31.95 +.21 34.49 28.92 4.4 12.2 292 Ventas @ 62.98 -.06 68.07 49.01 3.9 46.1 189
VertexPhm 48.22 -1.34 66.10 26.50 - 25.8 859
Morrison 267.90xd -1.2 339.70 260.50 4.1 9.5 14777 BankAm @ 9.22 +.1 10.09 4.92 0.4 25.8 5891 CSX @ 20.51 -.04 23.71 19.88 2.6 11.5 870 Helm&Pyn 47.72 -.37 68.60 38.71 0.6 9.6 135 Mastercard @459.40xd +6.42 486.06 333.81 0.2 27.5 129 PublStor @ 137.22 +.66 151.73 121.39 3.1 43.8 70 Verizon @44.57xd -.16 47.32 35.35 4.5 41.6 999
Natl Grid @ 706.50 +4 710.50 590 5.6 12.5 8504 Bard (C R) 96.32xd -.12 108.30 81.90 0.8 16.2 29 McDonalds @ 86.56 -.15 102.22 85.92 3.3 16.3 919 ViacomB @ 51.29 -1.24 56.91 39.88 2 12.4 3074
Cummins @ 93.44 -.38 129.51 82.20 1.9 9.3 221 Hershey 68.72 -.61 73.35 55.36 2.3 24.1 305 QEP Res 29.38 -2.1 38.44 24.35 0.3 34.8 985 VF Cp 155.01 +.37 169.82 125.56 2 17.2 97
NewWldRes 256.50 -14.9 607 246.60 4.1 - 46 Baxter @ 62.44 +1.28 63.05 47.56 2.3 15.2 556 CVS @46.28xd +.22 49.23 35.10 1.4 16.3 976 Hess @ 52.46 -.78 67.85 39.67 0.8 14.2 305 McGrawH 55.33 -.7 56.67 40.50 1.8 19.3 260 QuestDg 57.60 -.73 64.85 53.25 1.2 13.4 63 Visa @ 137.66 -.65 143.09 88.78 0.7 71.3 284 WestDigtl 34.11 -.01 45.94 24.96 0.7 4.5 2093
Next 3.57k -39 3.66k 2.48k 2.6 12.9 1821 BB & T @28.80xd -.21 34.37 21.04 2.6 11.3 466 Danaher @ 51.86 +.09 57.15 44.39 0.2 16.5 945 Hew-Pack @ 13.90 -.19 30 13.80 3.6 - 1472 McKesson @ 92.45 -.13 97.21 74.89 0.9 14.1 226 RalphLrn 153.15 +.63 182.48 134.29 0.8 21.1 170 Vornado 79.68 -.11 88.49 70.11 3.5 51 65 WynnRes 120.14 +1.17 138.28 90.11 12.1 23 1166
Old Mutl 172xd +.1 181.69 104.25 3.3 18.1 10495 Beam 55.68 -.01 64 47.85 1.5 48.4 66 DardenR 52.46xd -.08 57.88 41.65 3.5 14.3 102 Hillshire 25.78 +.3 30.38 23.34 8.9 - 221 Mdwstvco 29.54 -.07 31.34 23.99 3.4 29.8 122 RangeRes 65.34 -.76 73.92 52.35 0.2 - 141 VulcanMat. 46.11 -.38 49.99 28.82 0.1 - 50 Xilinx 32.66 -.17 37.74 30 2.6 17.7 801
Pearson 1.25k +13 1.3k 1.06k 3.5 19.6 3922 BectonDick 75.43 +.09 80.56 70.06 2.4 14.3 84 Davita 111.76 +.74 114.75 66.91 - 20.2 164 HlthCare 58.96 +.7 62.79 47.10 5 - 215 MeadJohnN 61.87 -.13 88.72 60.68 1.9 22.8 379 Raytheon @56.44xd +.73 58.66 42 3.4 9.7 222 Walgreen @ 35.29 +.1 37.34 28.53 2.8 14.6 550 Yahoo @ 16.73 -.06 16.89 14.35 - 5.1 13260

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AUSTRALIA TeckResB 31.78
TelusCorp @ 64.67
+.58
+.23
44
65.39
26.02
52.60
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3.7 17 213 Publicis
@ 135.65
41.57
+.2 137.25 100.05 2.6 16.9 227 NewWorld
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11.98
32 1.7 12.8 669 PetroChina @10.58xd
+.24
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8.85
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3.7
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142859
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C P
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Sanlam
372
38.67
+1.13
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393.70 270.05 2.4 - 1948 Kuhn&Nag 108.70
39.05 27.46 3.4 14.1 3242 Logitech
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(Oct 31/Aust$) ThmReut @ 28.16 -.48 30.40 26.10 4.5 - 359 Renault 34.51 +.08 43.83 23.34 3.4 5.8 1400 PowerAst @ 65.90 +.15 67.20 52.55 3.5 15 3448 C Rw (Oct 31/Euro) Sasol @ 369.99 -1.75 411.50 333.21 4.7 9.5 2083 Lonza Grp
AMP 4.59 +.08 4.85 3.71 7.1 18.1 10106 TntoDom @ 81.34 Aegon 4.31 +.05 4.57 2.71 - 12 8647 47.21 -.45 62.30 32.81 4.6 16.3 398
+.23 85.85 68.13 3.6 12 637 Safran 30.70 +.29 30.89 20.18 2 - 721 SHK Props @ 107.90 +1 122 85.30 3.1 6.5 5652 D Stanbank @ 107.11 -.39 120 91.85 4.6 11.7 2260
ANZ @ 25.45 +.07 27.63 18.60 8.1 11.9 6736 TransCan @ 44.87 Ahold 9.82 +.09 11.07 8.96 4.1 9.9 3427 Nestle @ 59.10 -.55 62.30 49.92 3.3 19.1 4665
-.07 46.29 39.25 3.9 23.1 798 Sanofi @ 67.82 -1.53 69.86 47 3.9 15 2683 Sino Land 13.88 +.18 14.94 9.28 3.3 8.2 8159 D N P Telkom 18.25 +.2 31 16.02 7.9 - 189
BHP Biltn @ 34.25 +.28 38.82 30.09 4.4 12.1 9516 Weston Ltd 65.04 +.81 70.63 57 2.2 14.4 70 Schneider @ 48.24 +.18 53.47 35 3.5 13.6 1160 Sinopec @ 8.23 +.11 9.67 6.38 4.5 10.6 68992 D S Akzo N 41.97xd +.33 49.07 32.12 3.5 - 734 Vodacom @ 109.26 -.14 112.22 86.61 7889.8 0 1205 NobelBiocr 8.34 -.04 13.56 8.22 1.8 21.9 499
Brambles 7.26 +.06 7.69 6.04 3.9 19 5482 SocGen @ 24.53 -.53 26.83 14.88 - 9.7 4415 Swire Pacific@ 91.95 +.05 96.80 69.03 3.6 8.3 1415 D w S ArcelorMit @ 11.43 -.79 17.96 10.60 5.1 35.3 17871 Novartis @ 56.05 -.4 59.45 47.12 4 16.8 4471
CCAmatil 13.45 -.12 14.19 11.30 5.8 14.9 2189 Sodexo 59.37 -.47 64.85 48.80 2.5 18.1 311 SwirePac B 17.54 +.06 18.50 13.56 3.8 4.1 486 D ASML Hld @ 42.45 -1.1 48.34 27.11 22.7 13.3 2426 Pargesa 62.80 -1.2 70.65 51.05 4.1 36.5 107
CmwBkAu @
CSL @
57.75
47.50
+.44
+1.1
58.05
48.64
45.39
28.10
8.2 12.9 4312 CHINA
1.7 25.1 1236 (Oct 31/Renminbi)
StGobn @ 27.19 -.32 37.63 23.90 4.6 14 2230 Tencent @ 274 +2.4 Rw Boskalis
Corio
29.39
34.38
-.15
-.08
31.36
41.22
21.92
28.26
4
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228
222
SOUTH KOREA prices in ’000s Richemont @ 60.40 -.45 64.75 43.60 0.9 18.2 1152
STMicro 4.54 -.06 6.46 3.64 6.8 - 2889 W H (Oct 31/Won) Roche @ 179.10 -1.2 188.30 133 3.8 18.3 948
FortescMet 4.08 -.02 6.18 2.81 2.8 8.3 13547 AgricBkCh 2.50 +.02 2.77 2.38 5.3 5.7 34748 SuezEnvir 8.19 -.15 12.23 8.01 7.9 28.6 1710 W DSM 39.62 -.4 44.72 32.69 3.7 15 843
HyundaiHvy 229 - 346.50 212.50 1.7 10.6 115 Roche Br 184.90 -.8 192.80 142.40 3.7 - 24
Leighton 17.90 -.4 26.65 14.71 4.5 - 1200 Air China 5.06 - 8.37 4.52 2.3 14.6 13472 Technip 86.90 +.07 92.36 60.79 1.8 17.4 382 R Fugro 52.16 +1.4 57.88 35.58 2.9 13.7 633
HyundaiMot@ 224.50 -.5 272.50 200.50 0.8 11.1 431
MacQuarie 31.90 +.7 31.99 21.22 4.7 13.8 2713 AluCorpCh mH Heineken @ 47.57 +.09 49.57 31.81 1.8 17.1 514 Schindler 120.50 +.8 122.70 98.70 1.7 25.5 67
3.39 +.01 4.68 2.86 - - 20137 Thales 27.14 -.26 28.91 21.61 2.9 10.7 212 HyundEng 65.70 +.9 87.50 55.60 0.8 13 472
NatAusBk @
NewcrestM @
25.79
26.43
-.09
+.27
27.13
37.27
21.57
20.89
10 12.1 9513 AlumCpCh
2.1 18.1 2764 AnhuiCC
4.84 +.01 8.71 4.72 - - 5512 Total @ 38.82 -.17 42.97 33.42 5.9 8.1 5790 ND A ING
KPN
@ 6.82
4.87
-.03
-.14
7.58
9.89
4.44
4.87
-
14.2
5.5
6.7
15990
12715
HyundMobis@ 278 +4.5 337.50 261.50 0.6 12 128 SchndlerPC 122.70 +1.2 124.40 97 1.6 - 135
26.80 +.75 30.50 19.10 1.6 13.6 12607 UnibailR @ 173.85 +.7 174.40 123.30 4.6 13.2 334 O 3 Rup H HyundStl 78.50 +.3 119 75.50 0.6 13.9 123 SGS SA 1.97k -16 2.07k 1.39k 3.3 28.2 9
NewsCorpA 23.25 -.01 24.90 15.70 0.6 - 39 BaoshanStl 4.63 +.02 5.44 4.07 - 6.8 17328 Vallourec 31.74 -.34 58.24 25.69 4.1 12.9 597 B H H M Philips @ 19.29 -.03 20.22 13.08 3.6 41.9 2831
IndBkKor 12 -.05 15.30 11.05 4.8 6.4 514 Sonova 93.65 -1.4 104.60 83.30 1.3 25.2 96
NewsCorpB 23.66 +.06 25.20 16.40 0.6 51.3 1379 Bk China 2.73 - 3.10 2.58 5.7 5.8 11305 VeoliaEnv 7.64 +.04 13.06 7.50 9.2 - 3080 B A H PostNL 3.04 +.03 4.83 1.87 16.7 0.3 4070
KB Financial 37.10 +.05 45 32.50 1.9 7.3 672 SwatchGpI @ 385.40 -2.4 439.70 319.10 1.5 - 128
Orica 25.12 +.14 28.27 23.01 4.8 14.8 1696 BkofComms 4.22 -.01 5.10 4.07 2.4 4.7 22409 Vinci @ 34.15 -.32 40.85 28.46 5.2 9.8 1352 C Randstad 25.19 -.13 30.09 19.82 5 39.4 475
Kia Motors @ 60.60 -.6 84.80 59.50 1 11.2 1375 SwatchGpN 67.65 -.35 76.50 56.90 1.7 - 47
OriginEgy 11.36 +.01 15.08 11.08 6.3 12.5 3304 ChCiticBk 3.58 -.01 4.73 3.49 4 4.7 13538 Vivendi @ 15.79 -.17 17.06 12.01 6.1 15.9 2846 C ReedElsvr 10.37 +.06 10.72 8.10 4.4 13.6 1806
Korea T&G 83.10 -.2 92.30 69.20 3.8 13.2 216
QBE InsGrp 13.18 +.16 15.15 9.88 5.3 18.4 9386 ChCoalEgy Robeco 23.79 - 24.80 19.20 2.5 58 52 Swiss Re @ 64.35 +.4 67.35 43.14 4.7 7 886
7.01 +.06 10.52 6.62 - 10.7 6184 GA KoreaEP 28.30 -.2 28.85 21.20 - - 1128
RioTinto 56.94 +.08 72.30 48.37 3.8 23 2841 ChConstBk RylDShlA 26.46 -.09 29.18 23.96 5 8 5576
4.13 - 4.95 3.82 5.7 5.5 9701 HD C B KoreaExch 7.56 -.04 9.12 7.04 31.2 6.3 433 Swisscom @ 386.90 +1 397.70 328.10 5.7 31 81
Santos
Stockland
11.51
3.46
+.03
-.01
14.63
3.64
10.04
2.90
3.7 20.9 2431 China Life
6.9 16.4 14481 ChinaUncm 3.55
17.36 -.24 20.36 15.88 1.3 54.3 9518 GERMANY H D
K
XH
P
Unilever @ 28.33
WoltKluw 14.93
-.07
+.11
28.83
15.19
23.15
11.39
3.3
4.6
19.7
18.9
3254
714
KT Corp 36.95 -.2 38.55 27.55 5.4 8.3 566 SwissLife 117.20 -.1 124.50 74.35 7.7 6.7 85
-.01 5.77 3.41 0.9 41.6 28850 (Oct 31/Euro) CC B LG Chem @ 306 +12 434 261.50 1.3 13.7 370 Syngent @ 363.80 +1.9 365.70 251 2.2 21.1 212
Suncorp 9.40 +.1 9.78 7.33 8.3 16.6 5182 ChMinsheng 6.02 +.06 6.85 5.39 7.5 4.9 80480 Adidas 65.73 -.36 68.37 47.11 1.5 17.8 976 O K C LG Corp 66.60 +1 77.70 51.80 1.5 13.3 811 Transocean 42.39 -1.08 54.30 36.02 5.2
KDD C - 428
Telstra @ 4.14 +.03 4.15 3.07 9.6 15.1 42088 ChMrchBk
Wesfarm @ 34.77 +.46 35.97 28.25 6.8 18.9 2726 ChPacIns
10.08
17.93
+.01 13.10 9.54
-.28 23.80 17.77
4.2 5.3 20997 Allianz
- 34.8 18902 AxelSprg
@ 95.66
33.09
+.24 97.33 64.26 4.7 13.1 2013
+.23 39.87 27.83 5.1 12.3 139 C K NEW ZEALAND LG Display 32.40
LG Elect 75.90
-.1 33 19.60
+.2 94.30 55.80 0.3
- - 2300 UBS
- 1073
@ 13.96 +.07 14.04 9.69 0.7 - 23933
Westfield @ 10.66 - 10.76 7.39 4.6 14.6 5356 ChShBldIn 4.49 - 7.27 4.44 - 16.6 10510 BASF K H (Oct 31/NZ $) ZurichFin @ 229.50 +.6 246.80 182 7.4 8.9 376
@ 63.93 -.17 68.63 46.06 3.9 11.7 2833 S&P LotteShop 337.50 +1.5 418.50 273.50 0.4 11.7 34
WestfldRT 3.10 -.03 3.17 2.34 5.7 11.5 11477 ChShenEgy 23 +.21 28.87 20.93 - 9.7 6032 Bayer & K m AucklndAir 2.69 +.02 2.72 2.28 4.6 34
@ 67.19 -.46 70.50 42.38 2.5 22.5 2848 NHN 252.50 +5 292.50 198.50 0.2 24 149
Westpac @ 25.51 +.17 26.12 19.29 9.1 12.9 7941 ChStCnsEng 3.04 -.01 3.46 2.85 2.6 6.5 27604 Beiersdorf @ 56.11 K ContactE 5.54xc +.08 5.58 4.49 6.9 20.6
-.44 59.39 39.73 1.2 52.9 352 M M C Posco @ 343.50 +1 427 340 2.8 11.2 71
WoodsdPt @ 34.40 +.1 38.16 30 4.7 18.4 2173 ChYgtzPwr 6.42 +.04 7.14 6.13 4 13.5 11499 BMW @ 61.45 -.06 73.95 48.52 3.7 8.8 2338 N mP
K FletchrBld 7.04 +.12 7.50 5.78 6.4 25.9 ShinhanFin 37.45 +.3 47.50 33.10 2 7.2 484 TAIWAN
Woolworth @ 29.41 +.15 30.88 23.21 6.1 19.8 3345 Citic Sec K P Telc.of NZ 2.41 -.02 2.75 1.86 13.7 4.5
10.89 +.12 13.99 9.04 3.9 9.7 33014 Celesio 14.94 -.28 15.85 10.30 1.7 - 241 NMDC Shinsegae 195 - 290 182.50 0.4 11 11 (Oct 31/T$)
M
Daqin Rail 6.04 +.04 8.05 5.82 6.4 7.8 19742 Commerzbk 1.48 -.02 2.21 1.12 - - 35817 O N G SK Hynix @ 24.85 +.55 30.95 19.75 - - 5720 Acer 22.60 -.3 46.15 22.30 - - 14
M
InCBkChina 3.82 +.01 4.48 3.60 5.3 6.1 19403 Daimler @ 36.03
AUSTRIA IndstrlBk @ 12.40 +.16 14.68 11.59 3 4.4 53081 Deut Bank @ 34.97
-.34 48.95 29.02 6.1 6.9 5769 R
+.18 39.51 22.11 2.1 11.1 7343 SB N wA
M NORWAY SK Innov 160.50
SK Telecom 153.50
+2 195.50
-.5 162.50
124 1.7 6.3 301 Au Optrncs 11.10
120 6.1 10.2 127
-.1 18 8.19 - - 62
(Oct 31/Euro) M H (Oct 31/Kroner) CathayFin 29.35 -.45 35.24 26.48 1.6 32.6 11
Moutai @ 247.34 +2.76 266.08 170.90 1.6 20.4 1585 Deut Brse 41.76 +.4 52.10 36.25 7.9 12.3 858 S A SmsungCT 59.30 -2.3 82.70 58.80 0.8 14.9 1899
M
Andritz 46.47 -.19 47.50 28.94 2.4 19.1 95 Ping An 38.80 +.32 46.85 33.35 1 14.9 10141 Deut Tlkm @ 8.81 -.02 10.06 7.69 7.9 32.6 12560 S M
AkerSol 112 +.2 117.90 56.40 3.5 10.1 1097 SmsungEl @ 1.31k +12 1.42k 921 0.4 11.5 204 ChimeiInn 10.90xr -.05 17.43 8.45 - - 76
ErsteGrBnk 19.38 +.31 20.05 10.40 - 9.9 940 Saic Motor @ 12.96 +.3 17.10 11.17 2.3 7.6 13097 DeutPstbk 30.87 +.16 31.75 20.41 - 35.9 18 AMO DNB @ 71.20 -.9 75.30 51.25 2.8 8.4 2972 SmsungEM 93.40 -.4 112.50 68.10 0.8 17.5 361 ChinaSteel 25.10xa -.2 30.44 24 4 61.2 12
Immofin 2.98 +.04 2.99 1.92 8.4 11.5 2152 M NorskHyd 25.67 -.01 34.58 22.97 2.9 - 3028
ShangPort 2.47 - 3.27 2.37 4.8 12.5 2103 DeutsPost @ 15.30 -.26 16.18 10.12 4.6 14.3 5381 C M SmsungEPf 792 -4 826 576 0.7 - 12 Chinatst Fin 16.10 - 19.12 14.20 2.3 11.3 21
OMV 28.20 +.27 29.21 21.10 3.9 7.9 358 ShngPdgBk@ 7.51 +.03 9.75 7.10 4 4.4 36411 E.ON @ 17.53 +.01 19.74 14.05 6.3 - 5774 S Orkla 45.10 +.14 48.84 39.10 5.5 - 6312 SmsungFre 238.50 +5.5 247.50 195.50 1.6 13.7 47 ChnghwTl @ 91.60 -.2 104.50 87.50 6 17.3 5
M Sm
Raiffeisen 30.85 - 31.96 14.16 3.4 7 108 ShznVanke 8.32 +.02 9.95 6.99 1.6 8.2 47223 Fielmann 75.10 +.41 80.85 65.20 3.3 25.6 18 W Roy.Carib. 191.60 -2.4 198.30 132.60 1.3 16.4 272 SmsungSDI 137 -7 171.50 115.50 1.1 16.1 891 CompalElc 18.40
M -.4 35.80 18.15 7.6 10.5 16
Strabag 19.38 -.17 23.64 17.03 3.1 58.7 11 Sinopec 6.23 +.03 7.93 5.75 4.8 10.5 16190 FraPort 45.24 +.68 49.84 37.06 2.8 18.8 142 Seadrill @ 230.80 -2.2 246.90 176.98 8 20.4 1157 WooriFin 10.30 -.1 14 8.98 2.4 4.7 1396
M M DeltaElc 99.80 -3.2 114.50 63 3.5 18.5 7
TelekAust 4.86 -.09 9.35 4.86 1 - 799 WulianYnb @ 33.60 -.1 39.55 29.82 1.5 14 13039 Fresenius @ 88 -2.25 96.93 67.29 1.1 32.5 877 Statoil @ 140.90 -1.4 162.80 133.20 4.6 5.5 3848
Verbund 17.96 -.33 23.20 14.50 3.1 17.6 126 FresMedC @ 54.19 -2.51 60.27 48.11 1.3 39.6 2150 NDONES A 000
N C
N
Subsea 7 125.10 +.6 147.69 95.63 2.7 9 1655 FormoC&F 69.20 -.8 93.70 69 5.8 - 4
Vienna Ins 33.13 -.19 35.91 24 3.3 3.3 44 GEA Grp 24.09 -.23 26.83 18.29 2.3 14.3 522 O 3 Rup h Telenor @ 112.10 +.6 114.20 86.90 4.5 48.1 1447 SPAIN FormPlastic 79.60 +.7 93.90 73.60 5 36.9 4
Voestalp 24.30 +.03 28.50 18.10 3.3 15.3 249 CZECH REP Hann.Rck 54.27 +.78 55.63 33.91 3.9 8.3 206 A
N S S M
N M
YaraIntl 268.60 -.4 305.50 215.50 2.6 6.5 1037 (Oct 31/Euro) FubonFnH 30 -.3 34.43 26.29 3.2 10.8 10
(Oct 31/Koruna) HeidCmnt 40.89 -.14 46.68 26.13 0.9 23.2 578 A N D Abertis 11.62 - 12.67 9.33 8.5 7.6 1339 HonHaiPrc @ 88.70 +.7 106.36 66.45 1.5 12.8 89
Cez 712.50 +4 845 684.70 6.3 8.6 385 Henkel 61.61 -.81 64.15 39.85 1.3 21.5 645 B N
BELGIUM/LUX KomercBnk 3.97k -25 4.23k 2.92k 4 13 31 Hochtief 38.26 -.23 55.68 34.64 - - 114 B C A
NKS
N m
POLAND Acciona
Acerinox
47.34
8.04
-1.05 71.15 29.46 6.7 60 99 HTC
-.31 11.26 7.39 6.8 - 720 MediaTek
211 +6.5 705
324.50 -.5 344.50
204 18.9 6.6 39
235 2.8 28.4 9
(Oct 31/Euro) TelCzRep 385 -2.8 418.60 364.50 10.4 14.9 263 Infineon 5.25 -.16 7.99 4.87 2.3 13.5 6951 B M N (Oct 31/Zloty) ACS 16.47 -.02 28.60 10.38 12.1 - 375
Ageas 19.64xa +.27 20.05 10.80 4.1 - 652 BkPekao 153.30 -.5 164.80 128.10 3.5 13.2 321 Banesto Mega Fin 21.25xc -.15 24.14 17.34 3.9 11.6 17
K&S 36.50 -.17 46.81 30.14 3.6 17.4 1490 B R N D 2.81 -.01 4.41 1.90 9.2 - 60
AnBshInBv@ 64.51 -1.77 71.05 38.61 1.9 18.4 2233 LANXESS 63.73 -.87 68.90 35.27 1.3 10.1 492 G Gm N DCM BRE Bank 301.20 -10.8 329.20 233 - 10.4 18 Bankinter 3.05 -.02 5.41 2.06 4.7 15.1 772 NanYaPlast 51.50 +.8 72.80 49.80 4.1 - 6
Belgacom 22.55 -.2 24.75 20.66 9.7 9.9 684 DENMARK Linde @ 129.75 -1.4 136.90 101.60 1.9 18.5 624 m O ING Bank 87 +.15 91.10 68.05 - 13 18 BanPoplr 1.20 3.68 1.20 33.6 6.4 8929 Quanta Cmp 66.80 -1.2 86.40 53.40 6 11.1 7
Colruyt 35.24 +.09 38.68 26.74 2.7 16.2 113 (Oct 31/Kr) Lufthansa 11.79 +.81 11.86 7.88 2.1 - 10820 U P KGHM 160.80 +2.4 174.20 102.40 17.6 3.4 707 BBVArg @ 6.44 +.12 7.35 4.31 5.8 14.8 33524 TaiwanMob 102 -1.5 115.50 85.10 6.1 18.9 7
Dexia 0.18 -.01 0.60 0.13 - - 1276 Carlsberg B 496.50 -10 543.50 340 1.1 12.2 466 MAN 77.81 -1.6 103 55.01 3 - 175 R PGNIG 3.95 -.06 4.39 3.61 - 39.5 3028 BcoSabdll 1.88 +.01 2.70 1.19 2.2 34.3 4440 TaiwanPet @ 85 -.8 99.50 77.50 2.4 - 1
Dlhaiz 29.50 +.4 48.11 25.59 6 9.4 573 DanskeBk 90 -4 113.40 66.85 - 43.5 13708 Merck KG 98.60 -1.02 101 65.18 1.5 45.4 221 R PKN Orlen 43.80 +.25 46.20 31.44 - 5.8 725 BcoSantdr @ 5.79 +.02 6.65 3.98 11.2 29.7 40761 TaiwanSem @ 88.70
GBL 56.96 -.15 60.37 48.56 4.6 23.9 99 MoellerMA 38.12k -60 46.2k 30.88k 2.6 - Metro 22.23 +.03 37.35 19.52 6.1 14.7 1855 RELAND R m PKO Bank 35.69 +.14 37.34 30.10 3.6 11.4 1506 BcoValen 0.17 1.15 0.09 - - 317
Utd Micro 10.85
+.7 91.30 71.30 3.4 14.7 26
-.15 15.75 10.85 4.6 18.7 18
KBC 18.11 -.32 21.92 7.65 0.1 - 1316 MoellerMB @ 40.16k -200 48.16k 32.66k 2.5 12.5 3 MTU Aero 64.78 -.19 67 45.45 1.9 16.2 72 O 3 Eu S m PZU 373 -2 384 290.10 6 12.8 88 CaixaBnk 2.92 -.03 4.12 2.01 8 29.4 2271
SES 21.32 -.05 22.65 17 4.1 - NovoB @ 927.50 -1.5 980.50 551.50 1.5 26.9 776 MuenchRkv@ 124 +1.4 128.35 82.93 5 8.8 903 A S H Telek.Pol 12.06 -.02 18.56 11.90 8.3 13.7 4681 CorFinAlba 29.15 +.09 36.06 22.10 3.4 - 85
Solvay 92.76 -.37 98.98 60.86 3.3 20.2 340 Novozym 0.7 23.5 483 Porsche 51.22 +1.27 51.79 37.69 1.5 15.7 878 B
UCB 45 -.06 45.13 28.50 2.2 47 174 TDC
159
39.65
-1.1 180
-.08 47.45
144.40
36.90 11.6 9.4 2053 Puma 220.10 -1.6 277.05 209.05 0.9 22.6 8 CRH
S & DIA
EbroFood
4.67
14.17
+.02 4.75 2.94 2.4 18.6 4115
+.18 15.39 12.20 3.2 13.2 339 THAILAND
VestaWind 33.33 +1.33 92 24.60 - - 2109 RWE @ 35.26 +.31 37.12 25.67 5.7 11.9 2671 C
S
S C PORTUGAL Enagas 15.34 +.04 16.02 12.51 6.5 9.8 724 (Oct 31/Baht)
WilDemant 495 -9 596.50 405.50 - 23.2 140 Salzgitter 33.39 -.59 48.95 27.03 1.3 15.5 343 G G SMC C (Oct 31/Euro) Endesa 16.42 -.07 17.58 11.30 3.7 8.4 340 Adv Info @ 197.50 -2.5 227 125.50 5.1 21.4 2521000
BRAZIL SAP @ 56.20 -.07 56.82 39.47 1.3 22.9 2696 N w S B.EspSanto 0.75 -.02 1.06 0.43 - - 13582 FCC 10.08 +.27 20.70 7.10 12.9 17.1 284 Bangkk Bk 177 -.5 203 136 3.4 115084300
(Oct 31 / 12:00 am/Real) Siemens @ 77.54 +.1 80.49 62.13 3.9 15.4 3141 S BCPort 0.07 0.22 0.06 - - 31066 GAMESA 1.57 +.01 3.80 1.01 0.4 - 996
Ambev @ 82.70 -.5 85.58 56.48 0.9 31.1 1113 DUBAI SMA Solar 16.54 -.07 55.75 15.86 7.9 3.8 65 K G S H BncoBPI 0.86xr 0.92 0.34 - - 240 GasNatur 11.97 -.05 13.80 8.36 5.8 9.4 1242
PTT @ 318 +1 369 289 3.4 10.83502400
BcoBrad 26.51xd -.53 29.19 22.57 3.9 - 259 (Oct 31/US$) Suedzucker 29.90 +.26 29.95 19.16 2.3 9 366 R S m C m BRISA 1.79 +.06 2.79 1.62 17.3 - 226 Grifols 26.76 -.1 27.72 10.24 - 51 600 PTT Exp 166 - 187 147.50 3.4 9.42649300
BcoSantdr 0.14xd - 0.18 0.12 3.4 - 796 DP World 11.86 +.01 12.30 9.46 2 43.9 102 ThyssenKr 17.56 +.06 23.29 11.45 2.6 - 3557 S m Cimpor 3.45 +.03 5.70 2.93 4.8 - 116 GrpFerrov 10.90 +.17 11.02 7.41 4.1 7.6 2073 SiamCem 374 +5 374 309 3.1 22.62427600
BM&FBovsp 13.11 -.11 13.69 8.84 3.7 23.8 3273 Volkswgn @ 150.40 +.55 153.15 98.60 2 2.9 190 S m mM EDP 2.10 +.01 2.52 1.63 8.8 6.9 3351 IAG 2.03 +.06 2.29 1.51 - 15.8 2462 SiamComBk @ 161 +.5 172 102 2.2 14.7 4197400
BncBrasil @ 21.83 -.08 29.79 18 11.5 5.5 1680 WackerChm 43.58 -.49 92.60 40.96 5 50.7 121 TALY S m m GalpEnerg 12.35 -.4 15.18 8.33 1 27.1 2216 Iberdrola @ 3.99 -.01 5.37 2.63 0.8 8.2 20232
Bradesco @ 31.73xd -.52 36.30 26.60 3.5 10.8 1651 FINLAND O 3 Eu S m m JeronimoM 13.50 -.06 16.07 11.26 2 24.4 474 Inditex @ 98.44 -.08 101 59.50 1.6 28.4 907
BrasilFds 36.89 -.26 38.67 27.53 3.1 49.7 1508 (Oct 31/Euro) A A S M PortTlcm 3.88 +.04 5.26 3 8.4 14.1 1960 IndraSis 8.80 -.1 12.48 6.08 7.7 10.4 444 TURKEY
Cielo 50.05 -1.3 64.11 36.88 4.3 14.8 1436 Fortum @ 14.27 - 19.36 12.81 7 10.3 1566 GREECE A &D H Sonae 0.57 -.01 0.59 0.37 5.8 12.1 1207 Mapfre 2.14 +.01 2.74 1.29 5.6 7.6 3210 (Oct 31/Tk Lira)
Eletrobras 11.17 +.02 19.52 10.95 80.2 - 962 Kone Corp 55.25xa -.15 57.12 36.43 2.5 21.1 211 (Oct 31/Euro) A P MedsetEsp 4.14 -.08 5.20 3.23 3.3 26.3 358
Akbank 8.64 +.2 8.68 5.28 1.2 15.4 18548
GerdauPf 17.73 -.26 21.67 12.90 2 14.5 1917 Metso Alpha Bk 1.80 -.05 2.42 0.42 - - 4817 A DK OHL 20.19 +.24 24.15 14 2.8 7.5 348
ItauHldFin @29.56xd -.4 38.94 26.73 3.9 10 3145 Neste Oil
27.07
9.65
-.04
+.01
37.27
11.23
24.88
7.11
6.3
3.6
9.6
21.4
939
928 BkPiraeus 0.42 -.04 0.81 0.16 - - 15723 B C m RUSSIA RedElectCp 36.18 -.13 39.75 29 6.1 20.4 348 KOC Hold. 8.42 +.28 8.46 4.97 1.4 10.7 9554
ItuasaPf @ 8.85 -.12 11.49 7.99 3.6 9 4517 Nokia 2.08 -.02 5.09 1.33 9.6 - 25327 Coca Cola 16.50 +.4 18.24 10.55 2.1 26.2 184 B M P (Oct 31/Rouble) Repsol @ 15.42 -.14 24.23 10.90 6.9 10.3 5537 Sabanci 9.46 +.4 9.46 5.10 1.1 13 6733
JBS 6.54 -.12 8.50 4.73 - 76.6 868 OtkmpA 0.65 -.01 2.15 0.63 - - 2982 EFGEbk 0.90 -.06 1.48 0.29 - - 3205 B P m R Pw Bank VTB @ 0.05 0.08 0.05 1.5 8.320972660 TechReun 37.89 -.01 39.31 23.50 3.6 15.8 265 TGaBan @ 8.56 +.2 8.64 5.44 1.7 11.1 48735
OGX Petro 4.77 -.01 18.41 4.38 - - 31784 SampoA 24.18 +.05 25.04 17.47 5 12.4 710 HelPetro 6.04 -.48 7.50 3.94 7.5 - 176 B P M GazProm @ 144.90 -2.16 200.80 136.54 6.2 2.8 46124 Telefonica @ 10.16 -.04 15.70 7.90 7.4 10.6 12331 Trk.Isbank 6.10 -.04 6.24 3.14 2 9.8 54497
PetrobasPf 20.86 -.67 25.89 17.42 9.3 14.7 21010 StorEnsR 4.87 -.02 5.95 3.73 6.2 12.2 2405 HelTel 3.40 -.18 4.11 1.09 - 3.8 1651 B PS GMK Noril @ 4.83k +55 6.24k 4.68k 4.1 7.4 374 ZardoyaO 9.54 +.19 10.48 8.09 4.9 18.6 161 TrkHalkBk 15.80 +.1 16.70 9.20 110.1 8.7 9152
Petrobras @ 21.51 -.79 28.26 18.05 9 - 6414 UPMKym 8.26 +.1 10.98 7.34 7.3 12.7 2719 NatBkG 1.79 -.05 3.13 0.90 - - 8142 B U m G Gzprm neft @ 153 -2.42 177.25 119.20 4.8 4.3 235
Turkcell 10.95 +.1 11.40 8.04 - 12.3 3195
SiderNacO 11.26 -.16 19.55 9 7.3 16 2575 Wartsila 31.21 -.47 32.53 20.38 2.9 20.3 1052 OPAP 4.93 +.08 8.54 3.50 14.6 3 2780 C m Lukoil @ 1.9k +5 2.05k 1.55k 2.1 5.4 828
SouzaCruz @26.79xd -.01 31.45 20.69 15.1 24.7 428 PublPwrC 4.42 -.34 6.43 1.13 - - 957 C m MTS 230.70 +1.59 257.29 176.40 6.4 24.2 753 SWEDEN TurkTelek 7 - 8.38 6.24 7.7 9.3 3728
UsinasMin 9.87 -.18 13.77 5.57 11 20.5 3481 TitanCem 14.36 -1.04 16.48 10 1.3 - 38 N Novatek @340.28xd +8.78 442.73 269.66 1.9 8.8 1395 (Oct 31/Kroner) YapiKred 4.60 +.02 4.63 2.48 - 10 35196
ValRio @ 37.20 -.25 46.50 32.21 14 - 3366 FRANCE N W Rw NovoSteel 58.94 +1.18 84.45 46.59 3.4 13.2 5657 AlfaLaval 115.20 -.6 147 110.40 2.8 15 857
ValRioPrf 36.01 -.36 44.30 31.73 5.5 7.8 9177 (Oct 31/Euro) RG Rosneft @232.70xd +.61 238.24 184.61 1.5 7.7 11116 AssaAbloy 221.10 -2.4 228 145.50 2 21.2 770
Accor 24.07 -.54 27.76 16.68 2.7 - 556 HONG KONG B RusHydro 0.77 1.24 0.72 1 28 422260 AstraZen 308.30 -2.1 329.80 285 6.8 9.5 920 M
ADP 59.65 - 67.29 49.76 3 18.7 116 (Oct 31/H.K.$) SbankR @ 91.79 +.59 103.85 73.75 2.3 6.3 52078 AtlasCpcoA@ 163.10 -.5 175.60 125.80 3.1 14.3 3305
CANADA AirFrn-KLM 6.45 +.5 6.50 3.01 - - 15275 AgricBkCh @ 3.36 +.05 3.98 2.72 4.9 6.2 123895 Severstal 383.90 +2.8 474 330.20 3.3 7.6 1685 ElctxB 169.70 -1.9 177 100.60 3.8 19.2 1406
(Oct 31 / 1:00 pm/Can $) AirLiquide @ 91 -1.45 100 77 2.5 18 715 AIA @ 30.70 +.15 31.50 22.45 1.1 27.3 14105 m MALAYS A Surgnfgz @ 27.23 +.18 33.89 24.03 2.2 4.1 22964 EricssonB @ 58.30 -.1 72.55 55.90 4.3 13.9 7627 ADVERT SED BASE
Agnico-E 56.18 +.36 56.98 31.50 1.4 - 359 Alcatel 0.79 -.01 2.04 0.71 - 1.5 20067 Bk China @ 3.19 +.07 3.45 2.35 6 5.5 361267 G O 3 Rn H&M @ 224.50 -2.1 257.30 191.30 4.2 21.8 1593 LEND NG RATES
Barrick @ 40.45 +.18 54.05 31.18 1.7 9.7 2178 Alstom 26.35 +.09 32.90 21.82 3 10.6 1126 Bk of EAsia 28.75 +.1 32.50 24.50 3.3 13.9 1890 S PS A G IndVardenA 97.20 -.75 109.20 75.60 4.6 2.9 71
BCE @ 43.59 +.22 45.28 38.85 5 13.7 891 AXA @ 12.27 +.05 13.25 8.50 5.6 11 5171 BkofComm @ 5.54 -.11 6.55 4.73 2.2 4.9 76818 SP C MB G SINGAPORE InvestorB 146.30 -.6 152.10 114.60 4.1 4.3 722
%
BkMontrl @59.28xd +.16 61.29 53.15 4.8 10.5 562 BNP Parib @ 38.81 -.59 41.95 24.54 3.1 8.1 3631 BOC HK @ 23.85 +.3 25 16.24 4.6 12.8 8863 m D m (Oct 31/S$) Kinnevik 126.70 -.4 155.20 121.20 4.3 8.8 244
BkNvaS @ 54.47 +.33 57.17 47.54 4 10.7 888 Bouygues 18.56 -.2 28.58 18.56 8.6 6.4 999 CathayPcA 14.04 +.24 16.38 11.76 2.4 31.4 3852 m G Capitalnd 3.27 - 3.35 2.18 2.4 12.9 19571 NordeaBk @ 60.25 -.7 66.95 46.80 3.7 9.4 4510 C p u Popu B n 3 00
Brookfield @34.44xd -.46 35.35 26.55 1.6 17.1 234 CapGemini 32.43 +.39 34.50 23.67 3.1 11.9 859 ChConstBk @ 5.84 +.13 6.62 4.71 5 6.3 243544 G M DBS @ 13.90 -.09 14.99 11.26 4 10.2 5017 Sandvik 92 -.75 108 72.90 3.5 14 4991
n B n UK 0 50
Cameco 19.35 +.27 26.43 17.25 2.1 17.2 502 Carrefour 18.64 -.19 20.51 12.87 2.8 20.8 3355 ChinaLife @ 22.90 +.25 24.70 17 1.2 35.3 18469 M O C Jard Math @ 61.60 -.8 62.90 44.70 2.1 11 172 ScaniaA 124.60 +.9 140 91.20 4 - 19
CanadPcR 91.88 +.19 93.91 56.82 1.4 22.9 246 Casino 67.38 -.15 75.94 59 2.2 13.8 362 ChinaMob @ 85.95 +.65 92.60 72.20 3.9 11.1 10905 M K K Jard Str @ 36.40 +.1 37.50 26.60 0.6 9.9 157 ScaniaB 126.30 -.3 142.20 92.75 4 14.7 1998 Fo u he n o ma on on any o he e
CanImp @ 78.72 +.42 78.93 68.15 4.6 10.3 505 ChristianD @ 110.75 +.95 119.70 86.40 2.5 15.5 327 ChinaRes 25.20 -.2 30.80 18.88 1.9 17.3 1799 M M B Keppel 10.66 - 11.67 8.73 4.1 8.1 7646 SEB @ 55 +.15 57.95 34.10 3.2 11.1 4821
a e p ea e con ac each bank d ec y
CanNatRs @ 30.15 +.11 41.12 25.58 1.3 11.7 853 CNP 10.90 +.09 12.90 7.52 7.1 7.9 352 ChinaTele 4.61 +.03 5.01 3.23 1.8 19.7 23781 M P S M OCBC @ 9.10 +.08 9.65 7.80 3.4 12.5 6300 SkanskaB 103.70 +.8 125.90 91.20 5.8 14.2 1756
CanNatRy @ 86.27 +.09 92.20 74.22 1.7 14.3 411 CredAgric 5.81 -.14 6.56 2.84 - - 9289 ChMerch 25.70 +.45 29 20.90 2.6 18.7 3320 P m M SC SIA Ltd 10.60 - 11.98 10.05 1.9 34.2 1231 SKF B 149.50 -.2 174.80 119.30 3.7 13.9 1685
CanOilSd 21.24 +.04 25.19 18.21 6.4 10.4 654 Danone @ 47.43 -.08 54.96 45.11 2.9 16.9 1635 ChngKong @ 114.50 +2.3 120.20 83 2.8 9.4 4653 P &C P C m Sing Tech 3.52 +.02 3.62 2.61 4.4 19.1 3256 SSAB A 47.46 -.58 76.60 45.10 4.2 - 2085
CenovusE @ 35.25 +.47 39.64 29.83 2.5 19.4 1158 DassaultSy 81.29 -.81 84.33 56.37 0.9 30.8 208 ChOvLnd&In 20.30 +.32 20.75 9 1.8 10 14156 P m P G SingTel @ 3.22 -.01 3.62 3.01 4.9 12.8 28409 SvenCellB 129.20 -1.6 132 90.30 3.3 - 2352
Enbridge @ 39.73 +.12 42.23 34.07 2.8 49.6 562 EADS @ 27.41 +.01 31.69 19.71 1.6 14.7 1411 ChResLand 17.70xd +.28 17.90 9.83 1.3 12.2 10631 S m PPB G UOB @ 18.27 -.14 20.23 14.42 3.3 4.8 3898 SvenskaHn@ 227.20 -2.4 249.90 161.90 4.3 10.9 1255
Encana 22.51 -.64 23.86 17.25 3.6 - 1000 EDF @ 16.33 -.16 22.24 14.80 7 9.3 1394 ChResPwr 16.60 -.24 17.98 12.64 1.8 15.8 5447 S P B WilmarInt 3.09 -.02 6.05 2.99 1.7 13.1 13013 Swedbank @ 123 -.5 126.80 75.65 4.3 13.4 2165
Goldcorp @ 45.10 -.2 55 32.34 1.2 25 1240 Eiffage 26.51 -.03 32.59 15.81 4.5 10.7 117 ChRongshng 1.67 +.09 3.03 0.95 1.6 13.4 63469 S m P B SwedMatch 226 -8 294.50 210.80 2.9 16.4 4112
GtWesLif @ 22.90 +.23 25.28 19.15 5.4 10.8 169 Eramet 97.93 -1.57 139.90 75.95 2.3 31.8 12 ChShenEgy @ 33 +.85 37.80 24.15 3.4 10.8 12583 m R Sm D Tele2B 110.70 -1.2 133.61 102.30 11.7 12.3 1510
HuskyE @ 27.39 +.25 28.33 22.04 4.4 13.5 414 Essilr @ 69.55 -.53 75.52 50.30 1.2 26.3 386 ChUncHK @ 12.66 +.32 16.98 9.45 1 48.9 26214 m mM SOUTH AFRICA TeliaSonra @ 43.67 -.55 49.65 41.03 6.5 10.5 7180
ImpOil @ 44.43 -.32 49.26 38.87 1.1 10.8 236 FranceTele @ 8.60 -.11 13.34 8.60 16 6.1 8861 Citic Pac 9.88 +.24 15.88 8.64 4.5 4.1 5119 RNA N (Oct 31/Rand) VolvoA 89.10 +.1 100.50 66.95 3.4 - 67
KinrossG 9.96 -.02 15.23 7.15 1.6 - 1561 GDF Suez @ 17.71 -.01 21.85 15.62 8.5 11 5739 CKI Hld 45.40 -.3 49.40 41.50 3.4 12.6 4166 ODS P w Absa 139.20 -2.12 164.50 132.20 5.1 10.8 1601 VolvoB @ 89.25 +.35 100.40 66.70 3.4 12 7529
Loblaw 34.73 +.09 39.24 31.11 2.4 14 396 Gecina 85.44 +.34 86.22 52.51 5.1 62 37 CLP @ 66.10 +.05 71.40 62.10 3.9 23.2 2306 UB B AngGold 288.21 +9.48 391.82 251.99 1.7 65.8 835
Manulife @ 12.39 +.12 14.07 10.18 4.2 - 1054 Hermes @ 210.60 -1.1 285.49 206.10 0.9 34.4 14 CNOOC @ 16.10 +.08 18.20 13.18 2.7 9.4 36574 U C Anglo 271.21 +5.19 350.05 230.76 2.8 - 2158
NatBkCan 77.02xd +.04 81.27 63.27 4 8.6 220 JC Decaux 16.33 +.03 23.48 15.75 2.7 18.1 75 EspritAsia 10.08 +.36 19.78 8.32 3.9 16.2 13822 MEX CO AngloPlat 404.27 +.27 598.50 393.21 0.5 - 282 SWITZERLAND
Nexen 23.95 -.55 26.70 14.20 0.8 34.5 923 Klepierre 28.61 -.06 29.60 18.57 5.1 35.5 281 HangLung 26.95 +.15 30.50 21.50 2 19.5 4157 O 3 2 00 m P ArclrMttal 33.40 -1.21 70.65 33.09 - - 629 (Oct 31/Frs)
Potash @40.29xd +.32 50.25 38.31 1.4 11.7 906 Lafarge 45.18 +.28 46.06 22.82 1.1 37.4 654 HangSeng @ 119xd -.1 120 91.05 4.4 12.6 1000 JAPAN 000 Am M Firstrand @ 28.77 +.22 29.27 18.90 3.5 11.1 12595 ABB Ltd @ 16.78 -.19 20.20 14.45 3.9 14 7427
Power Cp 24.33 +.28 27.42 21.10 4.8 11.4 186 Lagardere 21.09 +.08 24.70 16.03 6.2 - 201 HendersLd 53.70 +.65 57.90 35.40 1.9 7.9 4730 O 3 Y n C m CPO GoldFields 107.04 +4.3 145.25 95.51 3.6 9.3 1609 Actelion 44.92 -.37 48.72 29.54 1.8 17.5 438
PowerFn @25.77xd +.15 30.15 23.62 5.4 11 201 Legrand 29.72 -.18 30.71 22.44 3.1 16.2 856 HKChGas @ 20.60 - 20.80 15.58 2.4 25.4 4541 A MSA UBD Harmony 70.99 +1.36 116.09 66.16 1.3 11.8 705 Adecco 45.04 -.26 49.52 34.71 4 14.1 1002
ResMot 7.84 +.24 21.10 6.10 - - 1360 L’Oreal @ 98.27 -.11 102.50 74.15 2 22.5 555 HKExch 127.90 +2.3 148.90 100 3.1 29.2 3492 A m G Implats 155.95 +.4 189.50 123.47 1.3 22.6 1641 Baloise 77.80 +.25 80.65 58.30 5.8 47.7 129
RogCmB @ 43.75 -.25 44.37 34.75 3.6 15.1 577 LVMH @ 125.40 -1.35 136.80 103.20 2.3 18.2 824 HSBC 76.40xd +.7 76.90 56 4.6 11.5 11685 A B G M Kumba Iron @ 542.05 +6.13 599.50 454.5169502.6 0 346 CredSuisse@ 21.59 -.2 27.53 15.97 3.5 - 4948
RylBkC @ 57.12xd +.2 59.13 43.30 4 11.5 1062 Michelin 66.26 -.78 67.72 40.61 3.2 7 750 Hutchison @ 76.25 +.95 82.40 61.80 2.7 16.3 6568 A G MTN @ 156.21 +.64 163.89 127 5.1 13.2 8723 GAM Hldgs 13 -.05 13.80 9.43 3.8 - 251
Suncor En @ 33.35 +.08 37.28 26.97 1.4 11.8 1217 Natlxis 2.53 -.03 3.07 1.68 4 7.4 3360 In&CmBkCh@ 5.13 +.1 5.72 3.97 4.9 - 263651 A P m Naspers N @ 562.74 +.03 568 334.50 0.6 73.1 773 Givaudan 932 +8.5 970 749.50 2.4 25.6 25 www ft com/ r
SunLfFin 24.87 +.06 25.48 17.92 5.8 - 427 PernodRic @ 83.03 -.47 91.11 63.77 1.9 19 503 Li & Fung 13 +.12 20.15 11.46 3.8 18 16858 B CPO NedbankGrp 179 -2.22 189.86 133.30 3.8 11.8 573 Holcim @ 63.55 -.15 66 46.16 1.6 69.8 428
TalismEnrgy 10.90 -.6 14.90 9.72 2.5 20.9 8058 Peugeot 4.94 +.08 15.18 4.77 - - 5006 MTR @ 30.30 +.55 30.30 23.60 2.5 14 3300 C W m OldMut 24.25xd +.4 24.80 13.40 15.3 - 5458 JulBaerGp 32.30xr -.2 38.33 29.34 3 22.7 570
FINANCIAL TIMES THURSDAY NOVEMBER 1 2012 ★ 25

MARKET DATA
STOCK MARKET - WORLD MARKETS AT A GLANCE FTSE GLOBAL EQUITY INDEX SERIES Gross Gross
Country Index Oct Oct Country Index Oct Oct Country Index Oct Oct Oct 30 No of US $ Day Mth YTD Total YTD Div No of US $ Day Mth YTD Total YTD Div
31 30 31 30 31 30 Countries & regions stocks index % % % retn % Yield Countries & regions stocks index % % % retn % Yield
Argentina Merval 2315.90 2320.57 Israel Tel Aviv 100 1076.08 1073.36 Sweden OMX Stockholm 30 1052.11 1059.20 FTSE Global All-Cap 7255 368.52 0.4 -0.7 10.1 466.65 12.8 2.7 Oil & Gas 175 433.70 0.6 -1.3 2.0 597.88 4.5 3.0
OMX Stockholm AS 326.88 328.56
Australia ALL ORDINARIES 4535.36 4505.69 Italy FTSE MIB 15539.71 15521.77 FTSE Global Large Cap 1238 331.94 0.4 -0.7 10.1 427.49 13.0 2.9 Oil & Gas Producers 126 398.13 0.6 -1.0 1.4 556.12 4.0 3.1
S&P/ASX 200 Res 4190.22 4158.20 FTSE Italia Mid Cap 17148.47 17186.68 Switzerland SMI Index 6595.13 6633.10 FTSE Global Mid Cap 1632 465.50 0.4 -0.6 10.4 570.22 12.6 2.3 Oil Equipment & Services 40 435.77 0.3 -2.6 6.5 557.73 8.3 2.3
S&P/ASX 200 4517.00 4485.69 FTSE Italia All-Sh 16460.35 16446.52 Taiwan Weighted Pr 7166.05 7182.59 FTSE Global Small Cap 4385 492.60 0.2 -1.4 10.1 588.80 12.0 2.1 Basic Materials 294 479.91 0.8 -0.3 1.2 645.36 3.8 2.9
Austria ATX 2184.16 2176.37 Japan Nikkei 225 8928.29 8841.98 FTSE All-World (Large/Mid Cap) 2870 216.66 0.4 -0.6 10.2 288.76 12.9 2.8 Chemicals 109 518.18 0.7 -1.8 10.6 705.96 13.3 2.8
Thailand Bangkok SET 1298.87 1294.43 FTSE World (Large/Mid Cap) 2466 379.29 0.4 -0.7 10.2 678.95 12.9 2.8 Forestry & Paper 15 157.57 0.5 -1.2 1.3 230.01 4.4 3.5
Belgium BEL 20 2369.21 2383.33 Topix 742.33 733.46
Turkey ISE 100 72528.97 71716.91 FTSE Global All Cap ex UK 6934 373.34 0.3 -0.9 10.1 467.42 12.7 2.7 Mining 78 982.24 1.1 1.6 -4.8 1291.87 -2.2 2.9
BEL Mid 3783.91 3813.26 S&P Topix 150 621.82 612.97
FTSE Global All Cap ex USA 5315 401.91 0.7 0.3 8.4 532.71 11.8 3.3 Industrials 516 235.06 0.4 -0.2 9.2 304.52 11.7 2.6
2nd Section 2218.24 2220.09 UK FTSE 100 5782.70 5849.90
Brazil Bovespa 57134.87 57683.76 FTSE Global All Cap ex Eurobloc 7255 368.52 0.4 -0.7 10.1 466.65 12.8 2.7 Construction & Materials 110 361.00 0.5 0.3 9.5 489.67 12.3 2.8
FT30 2057.60 2080.60 FTSE Global All Cap ex Eurobloc 6597 377.18 0.2 -1.1 10.1 470.18 12.6 2.6
Jordan Amman SE 4551.07 4539.59 Aerospace & Defense 27 309.42 0.2 1.4 8.8 398.53 11.1 2.6
Canada S&P/TSX Met & Min 930.61 919.61 FTSE All Share 3024.40 3054.98 FTSE All-World Developed 2075 335.88 0.4 -0.7 10.5 427.97 13.2 2.8
Kenya NSE 20 (u) 4143.35
S&P/TSX 60 711.95 710.01 FTSE techMARK 100 2404.91 2419.35 FTSE Developed All-Cap 5618 350.72 0.4 -0.7 10.4 443.16 13.0 2.7 General Industrial 52 166.77 0.3 -1.8 13.5 229.03 16.3 2.9
S&P/TSX Comp 12424.27 12377.05 Latvia OMX Riga 379.05 375.98 FTSE4Good UK (u) 4909.35 FTSE Developed Large Cap 841 314.72 0.4 -0.7 10.6 405.04 13.4 2.9 Electronic & Electrical Equipment 71 235.03 0.9 -2.5 10.0 284.40 12.1 2.1
Chile IGPA Gen 20866.92 20884.54 Lithuania OMX Vilnius 346.19 348.00 USA S&P 500 1409.22 (c) FTSE Developed Europe Large Cap 200 308.62 1.5 2.2 9.7 437.46 14.0 4.0 Industrial Engineering 106 510.83 0.4 0.3 4.8 652.19 7.2 2.5
FTSE Developed Europe Mid Cap 311 398.86 1.1 1.8 14.4 527.38 17.8 3.0 Industrial Transportation 88 398.92 0.1 2.4 6.9 515.69 9.1 2.5
China Shanghai A 2166.49 2159.67 Luxenbourg Luxembourg General 810.53 828.12 FTSE Nasdaq 5000 7904.15 (c)
FTSE Developed Europe Small Cap 725 521.75 0.9 2.1 17.8 674.83 21.1 3.0 Support Services 62 212.31 0.2 -0.8 10.3 265.40 13.1 2.7
Shanghai B 220.54 219.43 Nasdaq Cmp (u) (c)
Malaysia FTSE Bursa KLCI 1673.07 1674.67 Consumer Goods 358 323.39 0.4 -0.1 9.7 425.93 12.2 2.6
Shanghai Comp 2068.88 2062.35 Nasdaq 100 (u) (c) FTSE North America Large Cap 277 314.00 0.0 -1.9 12.3 384.87 14.4 2.3
Mexico IPC 41547.51 41599.00 Russell 2000 (u) (c) FTSE North America Mid Cap 413 463.42 0.1 -1.5 10.6 542.27 12.1 1.8 Automobiles & Parts 88 271.76 0.8 -0.6 6.8 345.25 8.9 2.3
Shenzhen A 883.34 879.22
NYSE Comp. 8199.81 (c) FTSE North America Small Cap 1504 483.19 0.0 -2.1 9.0 552.12 10.3 1.6 Beverages 46 457.26 0.3 -0.7 15.6 608.75 17.9 2.3
Shenzhen B 591.80 592.97 Morocco MASI 9504.55 9432.07
Wilshire 5000 14668.49 (c) FTSE All-World North America 690 209.53 0.1 -1.8 12.0 264.04 14.0 2.2 Food Producers 88 443.91 0.4 0.9 8.3 603.71 10.9 2.6
FTSE A200 6194.55 6150.23 Netherlands AEX 330.76 332.35 FTSE All-World Dev ex North Am 1385 202.18 0.9 0.9 8.6 286.99 12.1 3.5 Leisure Goods 21 113.70 0.1 -2.8 -13.3 139.88 -11.5 2.0
FTSE B35 7527.47 7519.54 DJ Industrial 13077.42 (c)
AEX All Share 513.72 517.37 Personal Goods 64 477.90 0.7 1.5 12.9 610.94 15.0 2.1
DJ composite 4421.86 (c) FTSE Japan Large Cap 171 238.21 -0.7 -2.8 -2.2 280.02 0.0 2.7 Tobacco
Colombia CSE Index 14795.53 14861.28 New Zealand NZX 50 3957.88 3941.28 13 959.18 -0.3 -2.3 9.4 1637.49 13.1 4.0
DJ Transport 5072.64 (c) FTSE Japan Mid Cap 277 326.57 -0.5 -2.4 -5.0 375.57 -3.2 2.1
Croatia CROBEX 1754.82 1744.41 Health Care 144 281.10 0.3 0.3 15.5 366.41 18.3 2.6
Nigeria SE All Share 26431.94 26739.22 DJ Utilities 477.80 (c) FTSE Japan Small Cap 726 378.90 -0.7 -3.0 -1.5 447.17 0.6 2.4
Cyprus CSE M&P Gen 143.14 138.85 FTSE Japan (Large/Mid Cap) 448 97.27 -0.6 -2.7 -2.7 128.80 -0.6 2.6 Health Care Equipment & Services 58 369.22 0.1 -1.0 15.4 408.10 16.7 1.3
Norway Oslo All Share 486.54 487.80 Venezuela IBC 360114.13 359834.34 Pharmaceuticals & Biotechnology 86 218.32 0.4 0.7 15.4 293.10 18.8 3.0
Czech Republic PX 970.88 969.51 Pakistan KSE 100 15910.11 15795.93 Vietnam VNI 388.42 389.86 FTSE Asia Pacific Large Cap ex Japan 426 583.83 0.3 0.0 12.7 792.24 15.9 3.1 Consumer Services 349 263.56 0.2 -0.5 16.3 323.42 18.4 2.1
FTSE Asia Pacific Mid Cap ex Japan 446 710.61 0.4 -0.6 10.9 943.16 14.1 3.0 Food & Drug Retailers 50 214.89 0.5 0.3 6.3 271.76 9.1 2.7
Denmark OMXC Copenhagen 20 485.28 488.47 Philippines Manila Comp 5424.51 5426.67 Cross-Border Stoxx 50 € 2525.03 2547.16 FTSE Asia Pacific Small Cap ex Japan 1223 523.48 0.4 -2.2 8.6 685.94 11.5 2.9 General Retailers 112 360.05 0.1 -0.3 20.0 432.80 22.0 1.8
Egypt EGX 30 5695.93 5768.20 Poland Wig 43232.44 43240.07 Euro Stoxx 50 € 2503.64 2515.99
DJ Global Titans $ 193.34 193.91 FTSE All-World Asia Pacific ex Japan 872 455.62 0.3 -0.1 12.4 658.37 15.6 3.1 Media 81 188.10 0.3 -0.5 25.0 231.66 27.2 2.0
Estonia OMX Tallinn 675.70 679.57 Portugal PSI General 2208.52 2225.59 Euronext 100 ID 651.86 657.12 FTSE All Emerging All-Cap 1637 699.57 0.3 -0.8 8.3 911.41 11.6 3.1 Travel & Leisure 106 260.69 -0.1 -1.4 7.5 322.57 9.4 2.2
Finland OMX Helsinki General 5501.69 5498.94 PSI 20 5355.96 5385.19 FTSE Multinatls $ (u) 1184.62 FTSE All Emerging Large-Cap 397 674.95 0.2 -0.5 6.7 882.04 10.1 3.2 Telecommunication 94 148.34 0.4 -3.9 3.8 229.59 9.0 5.5
France CAC 40 3429.27 3459.44 Romania BET Index 4925.24 4883.12 FTSE Global 100 $ 1042.86 1047.48 FTSE All Emerging Mid-Cap 398 843.08 0.6 -0.8 13.6 1101.75 16.7 2.8 Fixed Line Telecommuniations 44 127.00 0.4 -4.2 1.0 212.13 7.1 6.8
SBF 120 2635.80 2656.34 FTSE4Good Glob $ (u) 4417.91 FTSE All Emerging Small-Cap 842 668.98 0.5 -3.4 13.7 849.09 16.7 2.8 Mobile Telecommunications 50 154.74 0.4 -3.6 7.0 220.39 11.1 4.2
Russia RTS 1430.68 1430.10 FTSE All-World All Emerging Europe 80 467.21 0.3 -0.3 12.5 606.45 17.0 3.7 Utilities
FTSE E300 1096.38 1103.05 156 232.67 0.3 0.1 -0.4 375.48 3.6 4.7
Germany M-DAX 11492.02 11504.35 Micex Index 1423.38 1421.17
FTSEurofirst 80 € 3289.08 3305.51 FTSE Latin Americas All-Cap 208 1234.02 0.3 0.0 3.3 1657.34 5.9 3.2 Electricity 112 240.30 0.3 0.3 -4.7 385.03 -1.1 4.6
XETRA Dax 7260.63 7284.40 Singapore FTSE Straits Times 3038.37 3038.73
FTSEurofirst 100 € 3291.11 3316.67 FTSE Middle East Africa All-Cap 206 703.72 1.0 -1.5 7.8 959.79 11.3 3.3 Gas Water & Multiutilities 44 269.70 0.4 -0.2 6.6 443.85 11.2 4.8
TecDAX 802.30 803.09 FTSE UK All Cap 321 321.70 1.2 1.5 10.5 455.69 14.2 3.6 Financials
Slovakia SAX 189.74 189.71 FTSE Latibex Top € 4483.00 4520.50 615 165.72 0.5 1.6 17.8 235.35 21.2 3.1
Greece Athens Gen 801.32 815.54 FTSE Eurotop 100 2255.75 2272.81 FTSE USA All Cap 1940 347.34 0.0 -1.9 12.2 417.62 14.0 2.1 Banks 236 165.78 0.6 1.6 16.9 248.25 20.8 3.5
Slovenia SBI TOP (c) 593.26
FTSE/ASE 20 293.34 300.30 FTSE Europe All Cap 1378 344.87 1.3 2.0 11.2 477.17 15.3 3.7 Nonlife Insurance 65 147.92 0.4 1.9 16.3 191.59 19.5 2.6
FTSE Gold Min $ (u) 3166.37
South Africa FTSE/JSE All Share 37156.28 37147.02 FTSE Eurobloc All Cap 658 306.53 1.7 3.0 10.3 430.82 14.8 4.1 Life Insurance
Hong Kong Hang Seng 21641.82 21428.58 FTSE All World (u) 216.66 46 144.13 0.8 3.2 18.8 201.43 21.9 2.9
FTSE/JSE Top 40 33008.20 33003.14
HS China Enterprise 10582.05 10458.26 FTSE World $ (u) 379.29 FTSE RAFI All-World 3000 Index 3002 4602.10 0.6 0.1 7.9 5295.03 11.0 3.2 Technology 169 115.56 0.2 -5.6 10.2 130.37 11.6 1.6
FTSE/JSE Res 20 50881.31 50844.69
HSCC Red Chip 4199.91 4147.55 MSCI All World $ (u) 1302.18 FTSE RAFI US 1000 Index 996 6214.96 0.0 -0.8 11.8 7295.32 13.9 2.3 Software & Computer Services 65 185.69 0.1 -5.1 11.2 205.25 12.4 1.3
South Korea Kospi 1912.06 1899.58 MSCI ACWI Fr$ (u) 329.12 FTSE EDHEC-Risk Efficient All-W 2870 240.61 0.3 -0.4 10.4 301.08 13.0 2.6 Technology Hardware & Equipment 104 92.33 0.2 -5.9 9.5 105.44 11.0 1.8
Hungary Bux 19220.49 19192.76
Kospi 200 250.18 248.52 MSCI Europe € (u) 1114.25 FTSE EDHEC-Risk Efficient Dev Eur 511 229.38 1.0 1.4 12.1 307.58 15.7 3.3
India BSE Sens 18505.38 18430.85
Spain Madrid SE 790.12 788.33 MSCI Pacific $ (u) 1977.18 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
S&P CNX 500 4448.85 4424.10
IBEX 35 7842.90 7833.90 S&P Global 1200 $ 1458.66 1460.17 Series (large/mid cap) - please see www.ftse.com/geis. The trade names Fundamental Index® and RAFI® are registered trademarks and the patented and patent-pending proprietary intellectual property of
Indonesia Jakarta Comp 4350.29 4364.60 S&P Europe 350 € 1104.56 1111.19 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-
Sri Lanka CSE All Share 5513.64 5520.62
Ireland ISEQ Overall 3248.49 3256.49 S&P Euro € 1048.80 1053.42 0063942-A1, WO 2005/076812, WO 2007/078399 A2, WO 2008/118372, EPN 1733352, and HK1099110). “EDHEC™” is a trade mark of EDHEC Business School As of January 2nd 2006, FTSE is
basing its sector indices on the Industrial Classification Benchmark - please see www.ftse.com/icb. For constituent changes and other information about FTSE, please see www.ftse.com. © FTSE International
(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. Limited. 2012. All Rights reserved. ”FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence.

EQUITY INDICES - FTSE EUROPEAN STOCK MARKET - RATIOS HFR INDICES EQUITY INDEX FUTURES
No of Euro Day’s Change Yield xd adj Total retn Oct 30 Oct 29 Week ago Oct 30 Oct 29 Week ago October 29 Index Value Dtd % Mtd % Ytd % Oct 30 Open Sett Change High Low Est. vol. Open int.
Oct 31 stocks index chge % points gross % ytd (Euro) € Yield P/E Yield P/E Yield P/E Yield P/E Yield P/E Yield P/E Global DJIA Dec - 13054.00 - - - - 13,298
FTSE Dev Eur L Cap 200 272.0 -0.7 -1.8 4.0 11.18 385.6 Argentina 8.1 6.8 8.1 6.9 8.0 7.0 Malta 4.6 19.6 4.6 19.7 4.2 19.1 HFRX Global Hedge Fund Index 1134.63 -0.0567 -0.40 2.28 DJ Euro Stoxx‡ Dec 2472.00 2509.00 +35.00 2518.00 2471.00 495,292 2,423,968
FTSE Dev Eur M Cap 311 353.3 -0.2 -0.6 3.0 11.40 467.2 Australia 4.6 15.4 4.6 15.4 4.5 15.6 Mexico 2.0 19.1 2.0 19.2 2.0 19.3 HFRX Equal Weighted Strategies Index 1113.84 0.0018 -0.58 1.37 S&P 500 Dec - 1407.60 - - - - 203,798
FTSE Dev Eur S Cap 725 462.9 0.0 -0.1 3.1 13.91 598.8 Austria 3.0 13.3 3.1 13.1 3.1 13.2 Netherland 3.0 12.6 3.0 12.5 3.0 12.5 HFRX Absolute Return Index 944.54 0.0688 -0.22 -0.21 Mini S&P 500 Dec - 1407.50 - - - - 2,978,558
FTSE Dev Europe 511 177.7 -0.6 -1.0 3.9 6.99 263.9 Belgium 2.2 17.9 2.2 17.8 2.2 17.8 AEX † 3.7 10.2 3.7 10.1 3.7 10.0 HFRX Market Directional Index 1044.08 -0.2323 -0.23 2.18 Nasdaq 100 Dec - 2659.00 - - - - 14,876
FTSEurofirst 80 80 3289.1 -0.5 -16.4 4.6 137.15 4785.7 Brazil 3.9 13.5 4.0 13.5 4.0 13.1 New Zealand 4.5 14.9 4.5 15.0 4.4 15.1 Equity Hedge Mini Nasdaq Dec - 2659.00 - - - - 371,325
FTSEurofirst 100 100 3291.1 -0.8 -25.6 4.3 126.69 4785.4 Bulgaria 2.4 10.7 2.3 10.9 2.4 10.5 Norway 4.2 10.4 4.2 10.4 4.3 10.2 HFRX Equity Hedge Index 1038.40 -0.0302 0.38 3.79 CAC 40 Nov 3401.00 3457.50 +51.00 3463.00 3400.00 54,374 312,003
FTSEurofirst 300 312 1096.4 -0.6 -6.7 3.9 38.88 1728.2 Canada 3.0 15.3 3.0 15.2 3.0 15.1 Pakistan 6.0 11.1 5.9 11.1 5.9 11.2 HFRX EH: Equity Market Neutral Index 928.69 0.1612 0.01 -5.37 DAX Dec 7198.00 7276.50 +70.00 7295.00 7198.00 61,806 145,428
FTSEurofirst 300 Ezone 167 1016.0 -0.4 -4.6 4.2 39.77 1601.7 S&P/TSX 3.2 13.9 3.2 13.9 3.2 13.9 Peru 5.1 38.5 5.1 38.5 5.0 38.7 HFRX EH: Fundamental Growth Index 1456.43 -0.2665 -0.25 3.35 AEX Nov 326.75 331.35 +4.00 331.65 326.65 16,118 79,788
FTSEurofirst 300 Supersectors Chile 3.1 18.3 3.1 18.3 3.1 18.2 Philippines 1.9 19.9 1.9 19.8 1.8 19.9 HFRX EH: Fundamental Value Index 971.69 -0.0083 0.70 5.16 MIB 30 Dec 15385.00 15506.00 +155.00 15555.00 15385.00 9,227 36,525
China 3.9 7.7 3.9 7.8 3.8 7.9 Poland 4.7 9.1 4.7 9.0 4.7 9.4 Event Driven IBEX 35 Nov 7759.00 7812.50 +102.20 7840.00 7744.00 4,177 43,717
Oil & Gas 18 323.6 -1.4 -4.4 4.5 11.53 453.9
Colombia 2.4 16.1 2.3 16.5 2.4 16.2 Portugal 5.0 17.4 5.0 17.3 5.0 17.4 HFRX Event Driven Index 1360.72 -0.0327 -0.77 4.09 SMI Dec 6580.00 6645.00 +50.00 6649.00 6580.00 16,003 151,402
Chemicals 15 778.3 -0.4 -3.4 2.8 22.80 983.0
Cyprys 1.8 40.4 1.8 40.8 1.6 44.1 Romania 5.0 9.7 5.0 9.8 4.9 9.8 HFRX ED: Distressed Restructuring Index 954.53 -0.1718 -2.23 1.15 FTSE 100 Dec 5767.50 5818.00 +45.50 5831.00 5755.00 43,385 584,058
Basic Resources 13 543.2 -0.9 -4.8 3.1 15.91 658.0
Czech Rep. 5.6 11.1 5.6 11.1 5.6 11.2 Russia 4.3 6.0 4.2 6.0 4.1 6.1 HFRX ED: Merger Arbitrage Index 1484.45 0.3127 -1.29 -0.62 Hang Seng Nov 21520.00 21471.00 - 21647.00 21330.00 71,275 123,613
Construction & Materials 12 340.4 -0.2 -0.8 3.9 11.93 442.1
Denmark 1.7 19.1 1.7 19.2 1.7 19.5 HFRX ED: Special Situations Index 1101.17 -0.0004 -0.48 2.70 Nikkei 225† Dec 8870.00 8850.00 -70.00 8910.00 8850.00 8,331 320,270
IndustrialGoods&Services 54 480.6 -0.1 -0.7 3.1 14.59 593.6 Singapore 2.9 11.9 2.9 11.9 2.9 11.9
Finland 5.6 16.6 5.6 16.4 5.6 16.2 Macro Topix Dec 735.50 733.50 -5.00 737.00 734.00 1,861 401,557
Automobiles & Parts 9 505.6 -0.6 -3.0 3.6 18.27 608.5 Slovenia 4.2 11.9 4.0 11.8 4.0 11.6
France 3.8 13.9 3.9 13.7 3.9 13.7 HFRX Macro/CTA Index 1141.33 -0.1424 -1.25 -2.12 KOSPI 200 Dec - 249.65 +0.75 - - - 107,636
Food & Beverage 18 626.2 -0.7 -4.5 2.7 15.56 788.4 South Africa 3.5 15.1 3.5 15.1 3.6 14.9
Germany 3.2 12.0 3.3 11.9 3.3 12.3 HFRX Macro: Systematic Diversified CTA Index 1510.69 -0.0964 -3.38 -7.97
Personal&HouseholdGds 19 632.7 -0.8 -5.1 2.8 17.12 787.3 South Korea 1.4 15.6 1.4 15.5 1.4 15.8 North American Latest. Contracts shown are among the 25 most traded based on estimates of
DAX 30 † 3.6 13.3 3.6 13.0 3.6 13.1 Relative Value
Health Care 19 406.0 -1.2 -4.7 3.6 13.69 527.1 Spain 5.2 12.7 5.2 12.5 5.2 13.7 average volumes in 2004. CBOT volume, high & low for pit & electronic trading at settlement.
Greece 2.1 13.8 2.0 13.8 1.9 14.7 HFRX Relative Value Arbitrage Index 1158.04 -0.0360 -0.16 2.64
Retail 15 327.1 0.1 0.2 3.5 10.69 415.7 Ibex 35 † 5.6 14.2 5.7 14.0 5.7 12.7 Previous day’s Open Interest. † Osaka contract. ‡ Eurex contract.
Hong Kong 2.8 12.0 2.8 12.0 2.8 12.1 HFRX RV: FI-Convertible Arbitrage Index 692.61 -0.0443 0.10 5.73
Media 9 272.0 0.2 0.5 4.1 10.78 372.7 Sri Lanka 2.6 13.9 2.6 14.0 2.6 14.1
Hang Seng † 3.4 10.7 3.7 10.8 3.4 11.0 HFRX RV: Multi-Strategy Index 1808.78 0.0024 0.40 2.18
Travel & Leisure 8 371.0 -0.5 -1.8 2.5 8.77 479.0 Sweden 3.9 12.6 3.9 12.4 4.0 12.4 INTEREST RATES www.ft.com/bonds&rates
Hungary 3.3 17.3 3.3 17.2 3.3 17.1 HFRI Monthly Strategy Indices - USD (Sep 2012)
Telecommunications 13 258.2 -0.8 -2.1 8.4 16.28 411.1 Switzerland 3.2 18.0 3.2 17.8 3.2 17.9
India 1.5 17.1 1.5 17.4 1.5 17.7 HFRI Fund Weighted Composite Index 10885.39 - 1.21 4.76
Utilities 21 312.9 0.2 0.5 6.6 18.26 471.3 Taiwan 3.6 18.2 3.6 18.0 3.6 18.4
Indonesia 2.2 17.4 2.2 17.3 2.2 17.5
Banks
Insurance
29
19
146.0
271.6
-0.6
0.5
-0.9
1.4
3.7
4.5
5.24
12.04
198.2
374.8
Ireland 1.1 10.4 1.1 10.3 1.1 10.0 Thailand 3.1 15.2 3.1 15.0 3.2 15.6
HFRI Fund of Funds Composite Index 4973.62
Indices calculated by HFR (Hedge Fund Research Inc.) www.hfr.com
- 0.82 3.38
INTEREST RATES - MARKET
Israel 3.6 12.3 3.6 12.2 4.2 12.1 Turkey 2.2 11.8 2.2 11.6 2.2 11.6 Oct 31 Over Change One Three Six One
Financial Services 5 284.6 0.2 0.7 4.4 12.37 385.2 UK 3.5 12.1 3.5 12.0 3.5 11.9 night Day Week Month month month month year
Italy 4.4 15.4 4.5 15.2 4.4 15.4
Technology 11 219.4 -0.7 -1.5 2.4 5.19 259.9
Japan 2.5 13.5 2.5 13.7 2.5 13.8 USA 2.2 15.6 2.2 15.6 2.2 15.6
Dow Jones † 2.7 13.4 2.7 13.4 2.7 13.6
VOLATILITY INDICES US$ Libor*
Euro Libor*
0.15500 0.001 0.002 0.003 0.21200 0.31275 0.53990 0.87750
0.01429 0.001 0.001 -0.004 0.05857 0.13286 0.27964 0.55214
Topix † 2.5 10.9 2.5 10.9 2.5 11.0 Oct 31 Day Chng Prev. 52 wk high 52 wk low
Further information is avaliable on http://www.ftse.com. © FTSE International Limited (”FTSE”) £ Libor* 0.48500 - -0.001 -0.011 0.50125 0.52813 0.70938 1.09875
Luxemburg 3.9 9.2 3.9 9.2 3.9 9.0 S&P 500 † 2.6 14.9 2.6 14.9 2.5 15.2 VIX † 18.77 0.96 17.81 37.53 13.30
2012. All rights reserved. Swiss Fr Libor* - - - -0.002 0.00600 0.03400 0.13300 0.32800
Malaysia 3.1 15.3 3.1 15.3 3.1 15.2 Venezuela 15.0 5.2 15.0 5.2 14.4 5.5 VXD † 17.35 0.80 16.55 33.87 11.91
”FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE Yen Libor* 0.09571 - - -0.004 0.13514 0.18857 0.30371 0.51657
International Limited under licence. `FTSEurofirst´ and `Eurofirst´ are registred trade marks of FTSE Country yields and P/E’s relate to a sample of stocks that cover at least 75% of each markets capita- VXN † 20.52 0.94 19.58 36.16 13.79
Canada Libor* 0.97100 - - -0.022 1.07500 1.23800 1.53000 1.96400
and Euronext N.V. All rights in and to the FTSEurofirst indices vest in FTSE and Euronext N.V. lisation. † Losses are excluded from the P/E calculation on country indices. Source: ThomsonReuters VDAX ‡ 17.02 0.13 16.89 31.78 15.80
Euro Euribor - - - - 0.11 0.20 0.39 0.62
† CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Sterling CDs - - - - 0.50 0.72 0.78 0.93
Index Options Volatility, ‡ Deutsche Borse. VDAX: DAX Index Options Volatility. US$ CDs - - - - 0.15 0.27 0.45 0.80
Euro CDs - - - - -0.05 0.00 0.13 0.30
INTEREST RATES www.ft.com/bonds&rates US o’night repo 0.50 - 0.280 0.170
Fed Funds eff 0.18 0.020 0.030 0.040
US 3m Bills 0.12 - 0.015 0.025
BONDS - GLOBAL INVESTMENT GRADE BONDS - BENCHMARK GOVERNMENT BONDS - TEN YEAR GOV’T SPREADS SDR int rate 0.09 - 0.010 0.010
Day’s Mth’s Spread Red Bid Bid Day chg Wk chg Month Year Spread Spread Spread Spread EONIA 0.088 -0.001 - -0.019
Red Ratings Bid Bid chge chge vs Oct 31 Date Coupon Price Yield yield yield chg yld chg yld Bid vs vs Bid vs vs EURONIA 0.0072 0.001 -0.004 0.014
Oct 31 date Coupon S* M* F* price yield yield yield Govts Australia 10/14 4.50 103.66 2.57 -0.02 0.07 0.05 -1.37 Oct 31 Yield Bund T-Bonds Yield Bund T-Bonds RONIA 0.4100 -0.008 0.030 -0.028
US$ 04/23 5.50 120.97 3.13 -0.04 -0.01 0.09 -1.42 Australia 3.13 +1.67 +1.43 Netherlands 1.73 +0.26 +0.03 SONIA 0.4349 0.003 -0.002 0.041
Bank of America 01/13 4.88 A- Baa2 A 100.66 1.48 -0.01 0.18 1.36 Austria 10/14 3.40 106.33 0.16 -0.02 -0.08 0.02 -0.91 Austria 2.00 +0.53 +0.30 New Zealand 3.49 +2.02 +1.79 LA 7 Day Notice 0.31-0.26
Goldman Sachs 07/13 4.75 A- A3 A 102.75 0.77 0.01 0.17 0.61 Belgium 2.45 +0.98 +0.75 Norway 2.05 +0.59 +0.36 Over One One Three Six One
11/22 3.40 112.66 2.00 -0.01 -0.04 0.04 -1.05 night Week months months months year
Hutchison 03/33 01/14 6.25 A- A3 A- 106.10 1.19 0.00 0.01 1.02 Canada 1.78 +0.31 +0.08 Portugal 8.17 +6.70 +6.47
Belgium 09/14 4.25 107.54 0.26 -0.02 -0.05 -0.09 -2.18 Denmark 1.48 +0.01 -0.22 Spain 5.65 +4.18 +3.95 Interbank £ 0.49-0.31 0.50-0.40 0.53-0.43 0.62-0.52 0.89-0.79 1.11-1.01
Misc Capital 07/14 6.13 BBB Baa2 - 106.69 1.99 0.00 0.01 1.70
BNP Paribas 06/15 4.80 A- Baa3 A 105.59 2.59 -0.01 -0.15 2.20 09/22 4.25 115.69 2.45 0.00 -0.02 -0.09 -1.90 Finland 1.72 +0.26 +0.03 Sweden 1.53 +0.06 -0.17 *Libor rates come from BBA (see www.bba.org.uk) and are fixed at 11am UK time. Other data sour-
GE Capital 01/16 5.00 AA+ A1 - 111.18 1.39 -0.07 -0.07 1.00 Canada 11/14 1.00 99.87 1.07 -0.02 -0.08 -0.01 -0.03 France 2.25 +0.79 +0.56 Switzerland 0.49 -0.98 -1.21 ces: US $, Euro & CDs: dealers; SDR int rate: IMF; EONIA: ECB; EURONIA, RONIA & SONIA: WMBA.
LA 7 days notice: Tradition (UK).
Erste Euro Lux 02/16 5.00 AAA - - 98.12 5.63 -0.03 0.03 5.16 06/22 2.75 108.53 1.78 -0.02 -0.08 0.04 -0.65 Germany 1.47 - -0.23 UK 1.84 +0.37 +0.14
Credit Suisse USA 03/16 5.38 A+ A1 A 112.97 1.37 -0.01 -0.27 0.81 Denmark 11/14 2.00 104.12 -0.03 0.01 -0.08 0.03 -0.90 Greece 17.62 +16.16 +15.93 US 1.70 +0.23 - Oct 31 Short 7 days One Three Six One
SPI E&G Aust 09/16 5.75 A- A1 A 109.77 3.05 -0.01 0.09 2.65 11/23 1.50 100.24 1.48 -0.01 -0.12 -0.01 -0.94 Ireland 4.86 +3.40 +3.17 term notice month month month year
Abu Dhabi Nt En 10/17 6.17 A- A3 - 116.67 2.57 0.01 -0.18 1.82 Italy 4.98 +3.51 +3.28 Yields: annualised basis. Source: ThomsonReu- Euro 0.22 - 0.12 0.25 - 0.15 0.21 - 0.11 0.30 - 0.05 0.45 - 0.19 0.59 - 0.43
Finland 09/14 3.13 105.68 0.07 0.01 -0.06 0.01 -0.66 ters Selection made by ThomsonReuters.
Swire Pacific 04/18 6.25 A- A3 A 119.29 2.45 -0.06 -0.23 1.72 Japan 0.78 -0.69 -0.92 Danish Krone 0.12 - -0.18 0.16 - -0.08 0.15 - -0.35 0.30 - -0.20 0.55 - -0.05 0.65 - 0.05
ASNA 11/18 6.95 A- Baa2 A 120.19 3.22 -0.01 -0.04 2.06 09/22 1.63 99.11 1.72 0.02 -0.10 -0.04 -0.87
Sterling 0.57 - 0.42 0.40 - 0.25 0.71 - 0.43 0.85 - 0.65 0.86 - 0.69 1.01 - 0.84
Codelco 01/19 7.50 A A1 A+ 128.63 2.48 0.07 0.02 1.33 France 10/14 4.00 107.45 0.21 0.00 -0.03 0.01 -0.83
Swiss Franc 0.11 - -0.09 0.02 - -0.18 0.02 - -0.23 0.05 - -0.20 0.11 - -0.01 0.75 - 0.25
Bell South 10/31 6.88 A- WR A 125.22 4.83 0.00 -0.01 3.13 10/17 4.25 115.68 1.00 0.01 0.00 -0.01 -1.13 BONDS - INDEX-LINKED Canadian Dollar 0.95 - 0.75 1.55 - 1.05 1.20 - 0.99 1.37 - 1.14 2.05 - 1.55 1.88 - 1.77
GE Capital 01/39 6.88 AA+ A1 - 137.98 4.41 -0.02 -0.25 1.54 10/22 2.25 99.97 2.25 0.00 0.01 0.07 -0.93 Price Yield Month Break even Value No of US Dollar 0.22 - 0.12 0.23 - 0.13 0.43 - 0.23 0.54 - 0.29 0.50 - 0.40 1.01 - 0.95
Goldman Sachs 02/33 6.13 A- A3 A 112.47 5.13 0.00 -0.13 2.25 04/41 4.50 125.05 3.15 0.02 0.03 -0.04 -0.78 Oct 30 Oct 30 Oct 29 return inflation* Stock Market stks Japanese Yen 0.06 - 0.02 0.11 - -0.01 0.14 - 0.02 0.30 - 0.10 0.27 - 0.15 0.70 - 0.40
Germany 09/14 - 99.93 0.04 0.01 -0.07 0.00 -0.58 Can 4.25% ’21 142.29 -0.33 -0.33 0.37 2.19 5.2 66.0 6 Singapore $ 0.03 - 0.01 0.37 - 0.17 0.55 - 0.40 0.57 - 0.42 0.38 - 0.13 0.60 - 0.45
Euro Fr 2.25% ’20 117.48 -0.01 -0.01 -0.55 1.57 20.0 176.4 12
10/17 0.50 100.02 0.50 0.02 -0.11 -0.03 -0.82 Source: Reuters. Short term rates are call for the US Dollar and Yen, others: two day’s notice.
Amer Honda Fin 07/13 6.25 A+ A1 - 104.05 0.38 -0.29 -0.10 0.37 Swe 0.25% ’22 102.22 0.10 0.10 -1.89 1.44 14.8 240.0 5
SNS Bank 02/14 4.63 BBB+ Baa2 BBB+ 103.08 2.16 -0.02 -0.80 2.12 09/22 1.50 100.31 1.47 0.02 -0.12 0.01 -0.73
UK 2.5% ’16 343.24 -1.79 -1.79 0.20 2.26 8.0 332.0 20
JPMorgan Chase
Hutchison Fin 06
01/15
09/16
5.25
4.63
A
A-
A2
A3
A+
A-
109.26
112.07
0.96
1.40
0.05
0.02
0.05
-0.22
0.91
1.14 Greece
07/44
02/23
2.50
2.00
104.11
31.50
2.32
17.62
0.00
0.18
-0.11
0.47
0.06
-2.12
-0.63
-6.62
UK 2.5% ’24
UK 2% ’35
332.62
194.90
-0.43
0.13
-0.43
0.13
0.35
1.46
2.43
2.77
6.8
9.7
332.0
332.0
20
20
INTEREST RATES - OFFICIAL
Hypo Alpe Bk 10/16 4.25 - A1 - 102.26 3.63 0.00 0.25 3.40 02/33 2.00 22.30 16.39 -0.10 0.18 -1.83 - US 0.625% ’21 113.83 -0.90 -0.90 0.03 2.35 35.8 936.0 33 Oct 31 Rate Current Since Last Mth ago Year ago
GE Cap Euro Fdg 01/18 5.38 AA+ A1 - 117.55 1.81 -0.04 -0.24 1.27 Ireland 10/17 5.50 108.50 3.60 0.21 0.13 -0.34 -4.45 US 3.625% ’31 159.62 -0.18 -0.18 1.41 2.50 16.8 936.0 33 US Fed Funds 0.00-0.25 16-12-2008 1.00 0.00-0.25 0.00-0.25
Unicredit 01/20 4.38 BBB+ Baa2 A- 99.15 4.51 -0.08 -0.02 3.55 US Prime 3.25 16-12-2008 4.00 3.25 3.25
10/20 5.00 100.88 4.86 -0.07 0.16 -0.45 -3.52 Representative stocks from each major market Source: Merill Lynch Global Bond Indices
ENEL 05/24 5.25 BBB+ Baa1 BBB+ 103.12 4.89 -0.02 -0.30 3.33 US Discount 0.75 18-02-2010 0.50 0.75 0.75
Italy 11/14 6.00 106.98 2.46 -0.12 0.06 -0.18 -2.53 * Diff between conventional and IL bond. † Local currencies. ‡ Total market value. In line with market
convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par Euro Repo 0.75 05-07-2012 1.00 0.75 1.50
Yen 08/17 5.25 106.48 3.78 -0.12 0.08 -0.21 -2.00 UK Repo 0.50 05-03-2009 1.00 0.50 0.50
amount.
ACOM 51 06/13 2.07 BB+ WR BBB+ 100.57 1.08 -0.01 -0.03 0.98 11/22 5.50 104.53 4.98 -0.04 0.12 -0.19 -1.05 Japan O’night Call 0.00-0.10 05-10-2010 0.10 0.00-0.10 0.00-0.10
Deutsche Bahn Fin 12/14 1.65 AA Aa1 AA 102.92 0.24 -0.01 -0.01 0.13 09/40 5.00 92.82 5.58 -0.06 0.02 -0.26 -1.13 Switzerland Libor target 0.00-0.25 03-08-2011 0.00-0.75 0.00-0.25 0.00-0.25
Nomura Sec S 3 03/18 2.28 - - - 100.30 2.22 - -0.03 1.99 Japan 11/14 0.10 99.99 0.10 0.01 0.00 0.00 -0.05 COMMODITIES www.ft.com/commodities Source: ThomsonReuters
09/17 0.20 100.01 0.20 0.01 -0.01 - -0.18
£ Sterling
09/22 0.80 100.18 0.78 0.01 0.00 0.01 -0.26 CURRENCIES www.ft.com/currencies
Slough Estates
ASIF III
09/15 6.25
12/18 5.00
-
A+
-
A2
A- 110.08
A 108.04
2.58 -0.13 -0.02
3.49 -0.01 -0.36
2.27
2.30 09/32 1.70 100.00 1.70 0.01 - 0.05 -0.09 COMMODITIES
Netherlands 07/14 3.75 106.21 0.08 0.00 -0.07 -0.02 -0.70 Energy Price* Change Agricultural & Cattle Futures Price* Change
US $ denominated bonds NY close; all other London close. S* - Standard & Poor’s, M* - Moody’s, 07/22 2.25 104.60 1.73 0.02 -0.09 -0.01 -0.85 WTI Crude Oil † Dec 85.68 nc Corn u Dec 741.75 nc FX - EFFECTIVE INDICES
F* - Fitch. Source: ThomsonReuters New Zealand 04/15 6.00 108.32 2.47 - -0.06 -0.05 -0.37 Brent Crude Oil ‡ Dec 109.08 nc Wheat u Dec 856.75 nc Oct 31 Oct 30 Mth ago Oct 31 Oct 30 Mth ago
04/23 5.50 117.48 3.49 -0.04 -0.15 0.02 -1.08 RBOB Gasoline † Nov 2.7288 nc Soyabeans u Nov 1533.75 nc Australia 107.8 107.6 107.1 Sweden 86.1 86.2 87.4
Heating Oil † Nov 3.0866 nc Soyabeans Meal u Dec 476.00 nc Canada 112.8 112.7 114.4 Switzerland 143.8 143.6 142.9
Norway 05/17 4.25 111.75 1.55 0.01 -0.06 0.06 -0.57
Natural Gas † Dec 3.691 nc Cocoa v Dec £1548 +4 Denmark 105.1 105.1 104.5 UK 83.9 83.7 84.3
05/23 2.00 99.50 2.05 0.00 -0.06 -0.09 -0.74 Ethanol u Nov 2.413 nc Cocoa ™ Dec 2.388 0
Portugal 06/14 4.38 98.71 5.22 0.20 0.86 -0.06 -13.73 Uranium 42.50 -4.00 Coffee (Robusta) v Nov 1940 -15 Japan 177.7 178.4 182.9 USA 80.4 80.2 79.5
10/23 4.95 77.25 8.17 0.03 0.37 -0.91 -3.79 Carbon Emissions ‡ Nov €8.23 +0.10 Coffee (Arabica) ™ Dec 154.65 -2.55 New Zealand 110.7 110.3 110.9 Euro 89.48 89.59 88.43
Diesel (French) 961.25 -17.00 White Sugar v Dec 541.80 -2.90 Norway 108.4 107.9 108.0
Spain 10/14 3.30 100.45 3.06 -0.09 0.01 -0.56 -0.86
Unleaded (95R) 950.00 +12.00 Sugar 11 ™ MAR3 19.56 nc
01/22 5.85 101.42 5.65 -0.03 0.03 -0.33 0.13 Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 =
BONDS - HIGH YIELD & EMERGING MARKET Sweden 05/14 6.75 108.89 0.76 0.01 0.01 0.09 -0.64
Base Metals (´ LME 3 Month)
Aluminium 1911.00 -1.00
Cotton ™
Orange Juice ™
Dec 70.92
Nov 106.25
nc
-1.20 100. Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk
Day’s Mth’s Spread
06/22 3.50 117.45 1.53 0.01 -0.10 0.05 -0.55 Aluminium Alloy 1800.00 -11.00 Palm Oil Dec 840.00 +5.00
Red Ratings Bid Bid chge chge vs Live Cattle ® Oct 126.750 +0.850
Oct 31 Switzerland 01/14 4.25 105.15 -0.15 0.00 0.07 -0.03 -0.24 Copper 7823.00 +64.00
date Coupon S* M* F* price yield yield yield US
High Yield US$
05/22 2.00 114.10 0.49 -0.01 -0.01 -0.04 -0.59 Lead
Nickel
2080.00
16270.00
+28.00
+200.00
Feeder Cattle ®
Lean Hogs ®
Nov 147.050
Dec 78.100
nc
nc EXCHANGE
Oct 31
CROSS
C$ DKr
RATES
Euro Y NKr SKr SFr £ $
HSBK Europe 05/13 7.75 BB Ba3 BB- 102.29 4.42 - - 4.21 UK 03/14 2.25 102.68 0.26 0.02 0.02 0.05 -0.34 Tin 20050.00 +50.00
09/17 1.00 100.91 0.81 0.03 0.01 0.09 -0.59 Canada C$ 1 5.759 0.772 79.97 5.712 6.639 0.932 0.621 1.001
Kazkommerts Int 04/14 7.88 B+ Caa1 B 98.40 9.09 0.01 -0.49 8.76 Zinc 1875.00 +13.00 % Chg % Chg
Bertin 10/16 10.25 BB B1 - 108.38 7.73 0.10 -0.87 7.15 09/22 1.75 99.22 1.84 0.02 0.01 0.12 -0.79 Precious Metals (PM London Fix) Oct 30 Mnth Year Denmark DKr 1.736 10 1.341 138.8 9.918 11.53 1.618 1.078 1.737
High Yield Euro 12/42 4.50 127.59 3.09 0.03 -0.05 0.01 -0.46 Gold 1719.00 +9.00 S&P GSCI Spt 635.79 -3.7 -3.2 Euro Euro 1.295 7.459 1 103.6 7.398 8.598 1.207 0.804 1.296
Royal Carib Crs 01/14 5.63 BB Ba1 - 101.34 4.46 0.03 -0.03 4.47 US 10/14 0.25 99.92 0.29 0.00 -0.01 0.05 0.00 Silver (US Cents) 3228.00 +30.00 DJ UBS Spt 142.22 -3.2 -5.7 Japan Y 1.250 7.202 0.965 100 7.143 8.302 1.165 0.777 1.251
Kazkommerts Int 02/17 6.88 B+ Caa1 B 83.78 11.91 -0.31 -0.17 11.59 Platinum 1570.00 +25.00 R/J CRB TR 295.64 -3.9 -8.9
10/17 0.75 100.11 0.73 -0.01 -0.03 0.10 -0.39 Norway NKr 1.751 10.08 1.352 140.0 10 11.62 1.631 1.087 1.752
Palladium 606.00 +12.50 Rogers RICIX TR 3652.28 -3.7 -3.6
Emerging US$ 08/22 1.63 99.34 1.70 -0.02 -0.07 0.06 -0.61 Bulk Commodities M Lynch MLCX Spt540.10 -3.6 -2.6 Sweden SKr 1.506 8.676 1.163 120.5 8.604 10 1.403 0.935 1.507
Bulgaria 01/15 8.25 BBB Baa2 BBB- 115.00 1.29 -0.03 -1.34 0.99 08/42 2.75 97.53 2.87 -0.01 -0.04 0.04 -0.48 Iron Ore (Platts) ± Nov 117.50 nc UBS B’berg CMCI TR1293.09 -3.6 -3.3
Peru 02/15 9.88 BBB Baa2 BBB 119.21 1.20 0.00 0.11 0.91 Iron Ore (TSI) ≠ 119.30 -0.50 Switzerland SFr 1.073 6.182 0.829 85.84 6.131 7.126 1 0.667 1.074
London close. Source: ThomsonReuters LEBA EUA Carbon 8.05 8.3 -22.6
Brazil 03/15 7.88 BBB Baa2 BBB 116.31 0.82 0.03 -0.09 0.53 globalCOAL RB Index 78.69 +1.19 LEBA CER Carbon 0.94 -53.5 -86.4 UK £ 1.610 9.274 1.243 128.8 9.198 10.69 1.500 1 1.611
Yields: Local market standard Annualised yield basis. Yields shown for Italy exclude withholding
Mexico 09/16 11.38 BBB Baa1 BBB 138.85 1.07 -0.02 -0.29 0.68 Baltic Dry Index 1026 -17 LEBA UK Power 49.03 16.2 2.9
tax at 12.5 per cent payable by non residents. USA $ 1 5.757 0.772 79.93 5.709 6.635 0.931 0.621 1
Argentina 01/17 11.38 27.81 59.18 - 0.30 58.54
Sources: † NYMEX, ‡ ECX/ICE, u CBOT, @ NYSE Liffe, ™ NYBOT, ® CME, ´ LME/London Danish Kroner, Norwegian Kroner And Swedish Kroner per 10; Yen per 100Source: FT derived from
Philippines 01/19 9.88 BB+ Ba1 BB+ 144.57 2.15 -0.04 -0.08 0.99
Brazil 01/20 12.75 BBB Baa2 BBB 170.87 2.09 -0.01 -0.12 0.94 BOND INDICES Day’s Month’s Year Return Return
Metal Exchange. * Latest prices, $ unless otherwise stated. ± Platts. ≠ The Steel Index. WM Reuters.
Colombia 02/20 11.75 BBB- Baa3 BBB- 161.93 2.44 0.01 -0.02 1.27
Russia 03/30 7.50 BBB Baa1 BBB 126.55 2.89 -0.01 -0.09 2.13 Index change change change 1 month 1 year DOLLAR EURO POUND DOLLAR EURO POUND
Mexico 08/31 8.30 BBB Baa1 BBB 160.94 3.75 - -0.06 2.03 Markit iBoxx Oct 31 Closing Day’s Closing Day’s Closing Day’s Closing Day’s Closing Day’s Closing Day’s
Indonesia 02/37 6.63 BB+ Baa3 BBB- 134.75 4.30 - -0.19 1.40 Overall (£) 1093 255.55 -0.19 -0.27 5.37 -0.27 8.39 Oct 31 Currency Mid Change Mid Change Mid Change Currency Mid Change Mid Change Mid Change
Emerging Euro Overall ($) † 3262 216.36 0.01 0.06 4.38 0.06 4.38 Argentina (Peso) 4.7650 0.0035 6.1745 -0.0051 7.6767 0.0190 Poland (Zloty) 3.1948 0.0159 4.1398 0.0143 5.1470 0.0346
Brazil 02/15 7.38 BBB Baa2 BBB 114.65 0.77 -0.04 -0.19 0.72 Overall (€) 2276 188.80 0.09 0.80 9.02 0.80 9.91 Australia (A$) 0.9644 - 1.2496 -0.0020 1.5537 0.0027 Romania (New Leu) 3.5067 0.0105 4.5440 0.0065 5.6495 0.0267
Poland 02/16 3.63 A- A2 A- 107.65 1.20 -0.04 -0.05 1.10 Global Inflation-Lkd † 97 243.88 0.15 0.42 6.01 0.42 6.58 Bahrain (Dinar) 0.3771 - 0.4886 -0.0008 0.6075 0.0011 Russia (Rouble) 31.3565 -0.0017 40.6318 -0.0648 50.5169 0.0851
Turkey 03/16 5.00 BB Ba1 BB+ 107.05 2.74 -0.02 -0.05 2.63 Gilts (£) 33 259.30 -0.22 -0.72 2.61 -0.72 6.75 Bolivia (Boliviano) 6.9100 - 8.9540 -0.0138 11.1324 0.0193 Saudi Arabia (SR) 3.7502 0.0001 4.8595 -0.0074 6.0418 0.0107
Mexico 02/20 5.50 BBB Baa1 BBB 119.18 2.58 0.04 0.03 1.62 Corporates (£) 703 252.65 -0.10 0.99 13.85 0.99 14.18 Brazil (R$) 2.0302 -0.0016 2.6307 -0.0061 3.2707 0.0031 Singapore (S$) 1.2201 0.0011 1.5809 -0.0012 1.9656 0.0051
Corporates ($) † 2111 236.83 0.01 0.98 10.17 0.98 10.17 Canada (C$) 0.9995 0.0001 1.2952 -0.0018 1.6103 0.0030 South Africa ( R) 8.6992 0.0634 11.2724 0.0649 14.0149 0.1264
US $ denominated bonds NY close; all other London close. *S - Standard & Poor’s, M - Moody’s, Corporates (€) 1196 188.78 0.09 1.11 11.54 1.11 10.96 Chile (Peso) 481.650 2.2000 624.122 1.8918 775.962 4.8867 South Korea (Won) 1090.60 -0.8750 1413.20 -3.3168 1757.01 1.6465
F - Fitch. Source: ThomsonReuters Treasuries ($) † 156 209.37 0.01 -0.37 1.87 -0.37 1.87 Sweden (SKr) 6.6354 0.0111 8.5982 0.0011 10.6900 0.0364
China (Yuan) 6.2372 -0.0033 8.0822 -0.0168 10.0485 0.0122
Eurozone Sov (€) 261 187.75 0.11 0.75 8.61 0.75 10.21 Colombia (Peso) 1831.20 1.6500 2372.87 -1.5210 2950.15 7.7809 Switzerland (SFr) 0.9312 0.0002 1.2066 -0.0016 1.5002 0.0030
ABF Pan-Asia unhedged 541 177.05 0.08 1.12 6.99 1.12 6.47 Costa Rica (Colon) 497.850 0.0550 645.115 -0.9244 802.063 1.4824 Taiwan (T$) 29.2125 -0.0365 37.8536 -0.1058 47.0628 0.0230
FTSE Oct 31 Czech Rep. (Koruna) 19.3746 0.1027 25.1055 0.0945 31.2134 0.2194 Thailand (Bt) 30.6500 -0.0600 39.7163 -0.1391 49.3787 -0.0106
Denmark (DKr) 5.7566 0.0086 7.4594 -0.0004 9.2742 0.0299 Tunisia (Dinar) 1.5700 0.0041 2.0345 0.0022 2.5294 0.0110
Sterling Corporate (£) 75 111.85 -0.13 0.54 5.44 0.95 10.85
Egypt (Egypt £) 6.1125 0.0032 7.9206 -0.0080 9.8476 0.0223 Turkey (Lira) 1.7945 -0.0020 2.3254 -0.0060 2.8911 0.0019
Euro Corporate (€) 306 106.65 0.03 0.65 5.95 0.98 10.40
Hong Kong (HK$) 7.7501 -0.0001 10.0425 -0.0156 12.4858 0.0216 UAE (Dirham) 3.6730 - 4.7595 -0.0074 5.9174 0.0103
Euro Emerging Mkts (€) 11 94.99 -0.28 0.44 5.53 0.89 11.50
Hungary (Forint) 218.610 0.0055 283.275 -0.4300 352.192 0.6210 UK (0.6207)* (£) 1.6111 0.0028 0.8044 -0.0026 - -
Eurozone Gov’t Bond 240 103.44 0.07 0.45 6.15 0.77 10.17
One Month 1.6109 0.0000 0.8047 0.0000 - -
CREDIT INDICES Day’s Week’s Month’s Series Series India (Rs) 53.7950 -0.2450 69.7076 -0.4255 86.6664 -0.2435
Three Month 1.6106 -0.0001 0.8054 0.0000 - -
INTEREST RATES - SWAPS Markit iTraxx Oct 31
Index change change change high low Indonesia
Iran
(Rupiah)
(Rial)
9605.00 -10.0000
12350.0 67.5000
12446.2 -32.1880 15474.1
16003.1 62.9015 19896.5
10.8115
143.137
One Year
Ukraine (Hrywnja)
1.6093
8.1630
-0.0002
-0.0125
0.8082 0.0000
10.5777 -0.0325
-
13.1510
-
0.0028
Euro-€ £ Stig. SwFr US $ Yen
Israel (Shk) 3.8863 -0.0035 5.0358 -0.0123 6.2610 0.0053
Oct 31 Bid Ask Bid Ask Bid Ask Bid Ask Bid Ask Europe 5Y 129.03 0.29 1.79 -7.06 141.39 115.67 Uruguay (Peso) 19.7500 - 25.5921 -0.0395 31.8183 0.0553
Japan (Y) 79.9300 0.3500 103.573 0.2943 128.771 0.7866
1 year 0.38 0.42 0.51 0.54 0.08 0.14 0.31 0.34 0.25 0.31 Crossover 5Y 524.29 -1.64 2.26 -43.31 581.00 476.13 USA ($) - - 1.2958 -0.0020 1.6111 0.0028
One Month 79.9105 0.0005 103.576 -0.0003 128.727 0.0004 One Month - - 1.2962 - 1.6109 0.0000
2 year 0.45 0.49 0.67 0.71 0.06 0.14 0.37 0.40 0.23 0.29 HiVol 5Y 199.40 -0.27 2.98 -6.40 211.37 182.33
Three Month 79.8540 0.0030 103.572 0.0060 128.610 -0.0004 Three Month - - 1.2970 0.0000 1.6106 -0.0001
3 year 0.58 0.62 0.75 0.79 0.08 0.16 0.46 0.49 0.23 0.29 Japan 5Y 201.88 -1.20 -7.06 -21.13 227.22 201.88
One Year 79.5678 0.0070 103.481 -0.0013 128.046 -0.0055 One Year - - 1.3005 -0.0002 1.6093 -0.0002
4 year 0.74 0.78 0.87 0.92 0.15 0.23 0.61 0.64 0.25 0.31 SovX CEEMEA 5Y 175.75 -4.99 -9.75 -40.13 231.44 174.58
Kenya (Shilling) 85.1500 -0.0250 110.337 -0.2028 137.181 0.1982 Venezuela(Bolivar Fuerte) 4.2947 - 5.5650 -0.0086 6.9189 0.0120
5 year 0.94 0.98 1.03 1.08 0.26 0.34 0.80 0.83 0.29 0.35 SovX Western Europe 5Y 107.93 -0.95 -1.28 -40.74 148.75 107.25
Kuwait (Dinar) 0.2814 0.0002 0.3646 -0.0003 0.4533 0.0011 Vietnam (Dong) 20850.0 5.0000 27017.4 -35.2120 33590.4 66.4200
6 year 1.14 1.18 1.21 1.26 0.39 0.47 1.01 1.04 0.36 0.42 Markit CDX Oct 31 Malaysia (M$) 3.0460 -0.0060 3.9471 -0.0138 4.9073 -0.0011
7 year 1.33 1.37 1.39 1.44 0.52 0.60 1.22 1.25 0.44 0.50
Emerging Markets 5Y 232.20 3.21 19.79 16.81 232.20 207.30 Mexico (New Peso) 13.0888 0.0445 16.9605 0.0315 21.0868 0.1082
8 year 1.49 1.53 1.58 1.63 0.66 0.74 1.40 1.43 0.54 0.60
Nth Amer Inv Grade 5Y 100.62 2.61 6.57 1.62 102.42 89.76 New Zealand (NZ$) 1.2164 -0.0024 1.5762 -0.0056 1.9597 -0.0005 Euro (0.7717)* (Euro) 1.2958 -0.0020 - - 1.2433 0.0041
9 year 1.63 1.67 1.75 1.80 0.78 0.86 1.56 1.59 0.64 0.70
Nth Amer High Yld 5Y 528.86 12.44 39.70 27.42 528.86 459.98 Nigeria (Naira) 157.060 0.0300 203.518 -0.2751 253.032 0.4880 One Month 1.2962 - - - 1.2428 0.0000
10 year 1.76 1.80 1.92 1.97 0.88 0.96 1.71 1.74 0.75 0.81
Nth Amer HiVol 5Y 215.22 2.64 10.24 16.46 215.22 180.96 Norway (NKr) 5.7094 -0.0176 7.3982 -0.0343 9.1981 -0.0124 Three Month 1.2970 0.0000 - - 1.2418 -0.0001
12 year 1.97 2.01 2.17 2.24 1.04 1.14 1.96 1.99 0.94 1.02
Pakistan (Rupee) 95.8700 0.0150 124.228 -0.1723 154.451 0.2926 One Year 1.3005 -0.0002 - - 1.2374 0.0000
15 year 2.18 2.22 2.44 2.53 1.19 1.29 2.21 2.24 1.22 1.30 Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets
Peru (New Sol) 2.5915 -0.0080 3.3581 -0.0156 4.1751 -0.0056
20 year 2.30 2.34 2.69 2.82 1.30 1.40 2.41 2.44 1.51 1.59 after the index names. † Oct 30 SDR - 0.6501 0.0005 0.8424 -0.0007 1.0473 0.0026
Philippines (Peso) 41.1950 -0.0100 53.3805 -0.0954 66.3672 0.0992
25 year 2.33 2.37 2.84 2.97 1.36 1.46 2.52 2.55 1.64 1.72
30 year 2.33 2.37 2.91 3.04 1.39 1.49 2.58 2.61 1.70 1.78 The data and prices listed are indicative and, while believed to be accurate at the time of publication, Rates are derived from WM/Reuters at 4pm (London time). * The closing mid-point rates for the Euro and £ against the $ are shown in brackets.The other figures in the dollar column of both the Euro and
Bid and Ask rates as of close of London business. £ and Yen quoted on a semi-annual actual/365 basis the FT does not warrant or guarantee that the information is reliable or complete. The FT does not Sterling rows are in the reciprocal form in line with market convention. Currency redenominated by 1000. Some values are rounded by the F.T. The exchange rates printed in this table are also available on
against 6 month Libor with the exception of the 1Year GBP rate which is quoted annual actual against accept responsibility and will not be liable for any loss arising from the reliance on or use of the the internet at http://www.FT.com/marketsdata
3M Libor. Euro/Swiss Franc quoted on an annual bond 30/360 basis against 6 month Euribor/Libor. information. Euro Locking Rates: Austrian Schilling 13.7603, Belgium/Luxembourg Franc 40.3399, Cyprus 0.585274, Finnish Markka 5.94572, French Franc 6.55957, German Mark 1.95583, Greek Drachma
Source: ICAP plc. 340.75, Irish Punt 0.787564, Italian Lira1936.27, Malta 0.4293, Netherlands Guilder 2.20371, Portuguese Escudo 200.482, Slovenia Tolar 239.64, Spanish Peseta 166.386
26 ★ FINANCIAL TIMES THURSDAY NOVEMBER 1 2012

MARKETS & INVESTING

Burton
Malkiel
EU short­selling rules cause confusion
INSIGHT Tough disclosure new disclosure require- guidance on how to calcu- ready for this,” said Paul Stephen Wink, partner at the importance of the mar-
ments for investors who late the size of their short Cluley, a partner at Allen & Latham & Watkins, the law ket maker guidelines.
requirements place large bets that the positions. Overy who has been advis- firm. “I think this was a But dealers said they
prices of EU-listed shares or “It’s a shambles,” said ing market participants. real surprise for many folks needed the final guidelines
Complaints over
Compromise is lack of guidance
bonds will fall.
The legislation also tight-
ens rules against “naked”
Darren Fox, a partner at
Simmons & Simmons who
advises hedge funds. “Peo-
“Esma isn’t ready. It is com-
ing into force because there
is a political will to be seen
in the US market.”
The UK’s Financial Serv-
ices Authority recently set
to see whether Esma had
responded to complaints
that the draft version was

needed for money By Brooke Masters

and Vanessa Kortekaas
shorting – selling shares
without arranging to bor-
row them first – and bans
ple are crying out for clar-
ity. I can’t remember
another piece of European
to be doing something, even
if no one knows quite how,
or indeed if, it will work.”
up an application procedure
for institutions that think
they fit under the market-
significantly more restric-
tive than the regulations
themselves.

market funds Late and complex guidance

from regulators has left the
markets unprepared and
investors from buying
credit default swaps on debt
issued by sovereigns in the
legislation being imple-
mented this badly.”
Dealers are even angrier.
The regulations also
mark one of the first times
that the EU has sought to
making exemption but the
UK watchdog has told banks
and brokers to look to Esma
The new law also calls for
the EU watchdog to opine
whether national regulators

under attack
confused ahead of today’s 27-nation bloc unless they The regulations contain regulate transactions out- to define what is covered. are being reasonable when
imposition of the first can show they are hedging important exemptions to side its borders – any short- Esma officials acknowl- they impose emergency
pan-European Union rules a long position. the rules for market makers ing of a security with a pri- edged that the guidance on bans on short selling equi-
on short-selling, according But investors and their but Esma is not expected to mary listing in the EU is market makers would not ties and bonds. Esma is
to brokers, traders and lawyers have complained issue final guidance on covered. be ready in time. But they expected to issue its view of
Money market funds have been an investors. that the European Securi- what counts as market- “This is really the first noted that the EU regulator the current Greek and
unambiguous benefit to both individual The far-reaching regula- ties and Markets Authority, making until later in time that non-US regulation has already published two Spanish bans this week.
and institutional investors, as well as to tions, which were finalised the pan-EU regulator, has November. has impacted directly [on] sets of frequently asked
non-financial corporations and municipalities in March, impose tough failed to give them enough “The regulators aren’t US market traders,” said questions and downplayed See Lex
in need of short-run financing.
But now the very existence of the $2.6tn
money fund industry is under attack. Both
present Federal Reserve chairman Ben

Intesa debt
Bernanke and former chairman Paul Volcker
have called for stronger oversight of money
funds because of their destabilising potential.
And Treasury Secretary Timothy Geithner
recently urged the Financial Stability

exchange
Oversight Council to push forward new rules
to rein in the industry as essential for
financial stability.
Some history will illustrate the potential
problem posed by money funds. Four years

offer worries
ago the US Treasury took the unprecedented
step of guaranteeing the value of money funds
to stop a run on the industry and a potential
disruption of the ability of non-financial
corporations to finance their short-term needs.
The run began when the Reserve Primary
Fund, the first US money market fund, “broke

A fluctuating
NAV would
the buck” in
falling to 97 cents
after suffering
large losses from
investors
the holdings of
diminish the Lehman Brothers ket conditions” but would
attractiveness of and other risky News analysis be offering investors a
paper. The chance to exchange those
money funds resulting investor The bank has notes affected with a new
and may make anxiety led to
billions of dollars
amended the early senior bond. It said those
investors that did not take
the problem of of outflows from redemption on the part in the exchange would
runs worse money funds that
were only
notes without see the call option removed
so that the paper would be
stemmed when the consultation, writes acceptable under new Basel
Treasury
announced a temporary guarantee of the $1
Mary Watkins III rules on tier two capital.
Given the current eco-
net asset value for all funds that paid a fee to Investors and analysts are nomic environment, the
participate in the programme. up in arms over the terms worry is that other banks Intesa said it would offer to exchange some of its tier two subordinated bonds for a new five­year senior bond Bloomberg
The guarantee was designed to stop the run of a bond exchange offer will decide not to call their
that certain institutional money funds were made by Italy’s Intesa San- bonds or adjust the lan-
experiencing and to stem the potential paolo, which some argue is guage of their existing call Intesa lower-tier 2 exchange offer European and global banks’ debt issuance
disruptions that could result if non-financial “aggressive” and poten- options because it is either October offer Deal value ($bn) Number of deals
corporations and municipalities were unable tially “gamechanging” for more expensive to refinance Europe Global Europe Global
to finance their short-term needs. While it bondholders. the debt or because of regu- Amount Coupon Offer 3500 9000
would be wrong to generalise too much from The Italian bank last latory factors. (m) (%) Call Step Maturity (%)
this example (a small money fund broke the week announced that it There are concerns that 3000 8000
buck in 1994 without triggering a big panic), would offer to exchange so-called economic calls are 3M Libor
Sterling 250 6.375 Nov 12 +135bp Nov-17 98.50
money market funds are certainly a critically some of its existing tier two becoming the trend. 2500 7000
important component of the short-term credit subordinated bonds for a BBVA, for example, said
markets. new five-year senior bond. in October that any deci- 3M Euribor 3M Euribor 2000 6000
Euro 750 +25bp Feb-13 +85bp Feb-18 93.75
One regulatory proposal to deal with money Bond exchanges and debt sion to exercise the option 1500 5000
market funds, originally suggested by Mary buybacks have become to call some of its subordi-
3M Euribor
Schapiro, chairman of the Securities and commonplace among banks nated notes would take Euro 1000 5.750 May-13 May-18 94.50 1000 4000
+198bp
Exchange Commission, is for the funds to looking to replace expen- “into consideration the eco-
adopt variable pricing. Unfortunately, a sive debt or find more col- nomic impact of such early 500 3000
Euro 500 4.375 Jun-13 3M Euribor Jun-18 93.50
fluctuating NAV would severely diminish the lateral. But what is unusual redemption, the regulatory
+100bp 0 2000
attractiveness of money funds and may even about the Intesa debt requirements and market
have the unintended consequence of making exchange offer is that the conditions”. 2005 2006 2007 2008 2009 2010 2011 2012*
the potential problem of runs worse. Italian bank has amended “We know that banks Sources: Credit Sights; Dealogic * Up to Oct 29
Individuals would be less inclined to use the early redemption, or always have an option not
these funds as chequing account repositories call option, on the notes to call a bond,” says Neil
for a forthcoming college tuition payment, for and done so without con- Williamson, head of Euro- dinated bonds. But inves- call option was “not materi- banks credit analyst at BNP be wary about being associ-
example, if they were uncertain what the sulting investors. pean credit research at tors supported subsequent ally prejudicial to the inter- Paribas says: “It’s yet to be ated with an action taken
value of their account would be when the The move is unsettling Aberdeen Asset Manage- new issues of debt. ests of bondholders”. seen what the [tier two cap- by banks in the [eurozone]
tuition payment for bondholders as they see ment. “And we were nerv- Georg Grodzki, head of Mr Grodzki says the ital] regulations will look periphery because it could
was due. such call options as sacro- ous on calls but we didn’t credit research at Legal & worry is that Intesa’s action like. But it is clear that be seen as a sign of weak-
The opportunity Institutional sanct. Call options offer the anticipate this step General, says the Intesa “will open the floodgates” Intesa could have done ness,” says Mr Zubo.
now presents investors are also ability for an issuer to change . . . this kind of tac- move is “unusual and un- for other issuers trying to things differently . . . in gen- Some investors and bank-
likely to find a repay debt early. While tic leaves a sour taste in the helpful”, adding that it is remove call options without eral investors didn’t think ers argue that bondholders
itself for the vehicle that there are examples of other mouth.” rational that an issuer involving bondholders. that the premium was sig- need to be more realistic.
money market provides a organisations not calling He says the risk to a bank wants to change the terms “This incidence will force nificant enough to offset “The fact is there are
fluctuating value their bonds, investors is potentially reputational – in his favour, but he consid- investors to review their such a change in policy. It’s banks where the cost of
fund industry unattractive. expect borrowers to repay if it fails to call its bond it ers bondholders should be position,” he says. a gamechanger. There’s no funding is higher than
and regulators The unintended callable notes at the first may no longer be able to consulted and trustees Analysts have questioned question about it. they’d like, especially in the
consequences of a opportunity and the notes rely on those investors to should not act without their the rationale behind “I would be surprised if periphery, and they don’t
to come back to regulatory are often valued on that support its next bond issue. consent. Intesa’s move since the new the management of other see why they should pay up
the table requirement to basis. Investors were angry Intesa said in its offer regulations on what kind of banks were not carefully to replace relatively cheap
shift to floating Intesa said that it did not when Deutsche Bank in statement that the trustee, tier two capital banks must looking at the issue and the capital with more expensive
NAVs need also to “deem it appropriate to 2008 broke with convention The Law Debenture Trust hold are being finalised. market practice is progres- debt,” says Stefan Isaacs, a
be considered. maintain its call-exercise and decided not to exercise Corporation, was of the Intesa declined to comment. sively moving towards eco- fund manager at M&G
Runs on money market funds could be even policy in the existing mar- a call option on some subor- opinion that removing the Ivan Zubo, European nomic calls. But some will Investments.
more likely if investors become more sensitive
to fluctuating prices. So-called “ultra short”
investment funds with floating prices
experienced substantial outflows during the
financial crisis. Floating NAVs would not
make money funds more robust during
adverse liquidity conditions. And the shifting
Petrol prices surge as Swiss central bank more than
of money fund deposits to banks could
increase systemic risks by making too-big-to-
fail institutions even larger. Shifting money
hurricane knocks out power doubles holdings of sterling
fund assets offshore to the unregulated sector
would also be undesirable. rack terminal lost power. though power was restored By Alice Ross and year gilt yields ended the zone in recent months has
COMMODITIES
If the SEC’s proposals are not the answer, Motiva, a joint venture to the refinery. Robin Wigglesworth third quarter flat at 1.73 per eased the pressure on the
what changes can be made to make the By Gregory Meyer between Saudi Aramco and PBF Energy said its refin- cent and have since climbed franc, giving the Swiss cen-
system more stable? One route suggested by in New York Royal Dutch Shell, said its eries in southern New Jer- Switzerland has emerged as to 1.84 per cent. tral bank time to diversify
Mr Volcker is to make money fund deposits terminals in New York and sey and Delaware “ran well one of the biggest overseas Switzerland has built up its holdings.
equivalent to bank deposits, with deposit Benchmark petrol prices New Jersey were flooded through the storm”. buyers of UK government record levels of foreign cur- Other currencies includ-
insurance and all the regulations that would surged in the aftermath of and without power. It had The shutdowns come debt as it seeks to offload a rency reserves this year as ing the Canadian dollar and
go with it. I doubt the benefits would exceed hurricane Sandy as power not yet set a restart date. amid low stocks of petrol huge stockpile of euros a direct consequence of its the Australian dollar have
the costs of that strategy; there are easier outages in the New York Kinder Morgan shut down and distillates such as die- accumulated during its policy of keeping the franc also seen heavy inflows
ways to make the system less vulnerable. region threatened to stall its northeast terminals, sel in central Atlantic push to weaken the Swiss at SFr1.20 against the euro, from the Swiss National
For example, the liquidity, duration, and deliveries of the fuel. which include locations in states. Stock levels have franc. which has been in place Bank as it has recycled its
quality standards for money funds could be Nymex November refor- New Jersey, as they were declined after some refiner- The Swiss National Bank since September last year. euros.
further strengthened. The SEC made progress mulated gasoline, or RBOB, without electricity. ies closed down operations more than doubled its hold- The country is now the Central bankers have
in 2010 in establishing minimum requirements, futures rose as much as 7.7 Meanwhile, Phillips 66 in the face of weak fuel ings of sterling in the third fifth-largest reserve man- taken note of Switzerland’s
and these could be used as a framework for per cent to $2.9375 per gal- said its 238,000 barrel-per- demand and costly crude. quarter of the year in an ager in the world, behind activity in the foreign
further discussion. lon yesterday, the con- day Bayway refinery in The structure of the effort to reduce its exposure China, Japan, Saudi Arabia exchange market this year.
Another idea is to establish “circuit tract’s final day of trading. Linden and three storage futures market has also dis- to the eurozone, cutting its and Russia. The governor of the
breakers” that take the form of standby It was the second time terminals were shut down, couraged traders from keep- euro reserves from 60 to 48 The central bank started Reserve Bank of Australia
liquidity fees on redemptions. For since September that ing excess petrol in tanks per cent and increasing buying tens of billions of in August expressed sur-
example, liquidity fees could be imposed futures soared upon expiry. as spot prices maintain a sterling reserves from £8bn euros a month in May, prise that a “conservative
Nymex gasoline price
if a fund’s liquidity fell below a prescribed Nymex gasoline and heat- Front to second month spread premium to prices for deliv- to £18.9bn. when the eurozone crisis institution” like the SNB
weekly level. ing oil futures require deliv- ($ per gallon) eries made in the future. Analysts at UBS and worsened and foreign inves- would be interested in the
The opportunity now presents itself for the ery in New York harbour, a This premium widened Nomura estimated the SNB tors rushed to buy the Australian dollar. Holdings
money market fund industry and financial network of rivers and bays 0.4 sharply this week as Sandy had been responsible for Swiss franc as a haven of so-called “other” curren-
regulators to come back to the table to discuss lined by oil storage termi- arrived with November two-thirds of total gilt pur- asset. But the improved cies by the SNB, which
viable alternative solutions. While a nals that were without elec- 0.3 gasoline rising 4.9 per cent chases by non-UK residents sentiment towards the euro- include the Australian dol-
compromise should be based on give and take, tricity and in some cases and gasoline for delivery in in the third quarter of the lar, rose to record propor-
0.2
neither side should abandon fundamental
principles.
For the industry, the principles should be
damaged after Sandy
scoured the US east coast.
“You can’t make delivery 0.1
December climbing 0.4 per
cent. “When you have
prices this high, you want
year, buying £10bn-£11bn
out of an estimated £17bn.
Overseas investors own
£18.9bn tions in the third quarter of
the year, at 4.1 per cent.
Switzerland’s ballooning
based on maintaining a stable, safe, and if your terminal is shut,” to minimise your carrying nearly a third of the UK Reserves held by Swiss reserves have sparked con-
convenient financial vehicle for their said Andy Lipow, president 0 costs,” said Kevin Linde- government bond market. central bank, up from £8bn cerns among analysts. A
investors. For the regulators, the principles of consultancy Lipow Oil mer, a refining industry “This is a huge number. report by Standard & Poor’s
-0.1
centre on ensuring financial stability. Surely
there must be a common ground solution
that preserves the product and protects
Associates in Houston.
NuStar Energy reported
“significant high-water -0.2
consultant. Nymex Novem-
ber heating oil fell 0.6 per
cent to $3.0687 yesterday.
It will definitely have
pushed gilt yields lower
than they otherwise would
1.73% in September warned that
Swiss buying of core euro-
zone government bonds had
markets. damage” to its harbour and Jan 2012 Oct have been,” said Geoffrey Ten­year gilt yields at the caused price distortions,
Burton Malkiel is the author of: ‘A Random storage terminal in Linden, Source: Thomson Reuters Datastream
www.ft.com/commodities Kendrick, foreign currency end of the third quarter sparking an unusual rebut-
Walk Down Wall Street’ New Jersey, while its truck Twitter: @ftcommodities analyst at Nomura. Ten- tal from the SNB.
FINANCIAL TIMES THURSDAY NOVEMBER 1 2012 ★ 27

MARKETS & INVESTING

Hong Kong Taking the temperature Trading post

Jamie Chisholm

harbours
‘hot money’ The FTSE 100 is back in
no­man’s land, the range
between about 5,800 and
6,000 where unwary bulls

misgivings
News analysis
Banks, the stock
market and
property might all
feel the effects of
inflows, writes
Paul J Davies
When you squeeze a bal-
loon, you can never be sure
where the bubble will pop
out.
This is something like the
uncertainty faced by inves-
tors, analysts and econo-
mists watching Hong Kong
as the monetary authorities
react against an apparent
influx of “hot money”.
Banks, the stock market
and property could all feel
the effects of these inflows
through inflated balance
sheets or prices.
This is not yet happening,
however, and the local gov-
ernment is also acting to
prevent it happening in res-
idential property. The ques-
tion is not only about from
where the hot money has
come but also to where it
has gone.
There is a related mys-
tery, too, over the strength
of capital outflows from
China – a key source of hot
money entering Hong Kong.
Outflows appear to have
been strong for much of the
year but the signals used to
judge this have gone into
reverse.
“It’s always difficult to
tell where hot money is
coming from,” says Paul
Tang, chief economist at
BEA in Hong Kong. “But
now it is much more likely
to be from other markets,
mainly the US and much
less so from mainland
China.”
First, the simple facts.
The Hong Kong Monetary
Authority has intervened
five times in the space of
two weeks to weaken the
local currency, injecting
HK$17bn and taking about
US$2bn out of circulation. It
said it expected net inflows
to increase for some time.
Since the US Federal
Reserve launched its third
round of quantitative eas-
ing, the Hong Kong cur-
rency has strengthened. It
is pegged to the US dollar at
HK$7.8 and the HKMA must
act if it hits either side of
the trading band of HK$7.75
to HK$7.85.
Hong Kong is not alone in
seeing strengthening pres-
sure on its currency in the
wake of QE3 – as the Fed
action is known.
Hong Kong had similar
issues during the first
round of QE in the US in
2008-09. During that spell,
the HKMA injected
HK$650bn to hold down the
exchange rate, many more
times the amount spent so
far in this round.
Back then, the cash injec-
tion was positive for the
economy. There was a
strong property market
Investor fatigue set
in before even the
first decent sized
IPO could get
underway
Hong Kong dollar strengthens after QE …
HK$ per US$
7.82
7.80
7.78
7.76
7.74
7.72
2008 09
Sources: Credit Suisse; Thomson Reuters Datastream
with a rising proportion of
mainland buyers and strong
Chinese corporate initial
public offering activity in
Hong Kong, which attracted
international investment,
say analysts at Citi.
There were also improv-
ing export markets as 2009
wore on and so good
demand for corporate credit
growth and trade finance.
All of these things gave the
hot money places to be use-
fully employed. Now things
are much different.
In the stock market, an
initial explosion of block-
trades and shares placings
after QE3 led to almost $7bn
worth of follow-on capital
raisings or stakes changing
hands in a range of listed
companies. The Hang Seng
… while Hong Kong equity gains are fading …
Hang Seng index (’000)
Quantitative easing
22
21
20
19
18
10 11 12
rose almost 14 per cent by
mid-October.
Investor fatigue set in
before even the first decent
sized IPO could get under-
way, however, and this
week Fosun Pharmaceutical
had a shocking debut. Also,
market volumes have
remained flat since QE3
against much of the rest of
the year, suggesting no
great leap in fund inflows.
In residential property,
prices are up about 14 per
cent this year. The govern-
ment has instigated a 15 per
cent stamp duty aimed at
foreigners and speculators,
partly designed to curb hot
money flows.
But transaction volumes
have been weak, according
to Barclays analysts,
Quantitative easing
Jan 2012
while the proportion of
mainland buyers has been
shrinking. It is down from a
peak of 42 per cent of new
sales in the third quarter of
last year to 23 per cent in
the third quarter of this
year, according to Credit
Suisse analysts.
This may be slipping fur-
ther. They note that in the
recent sales of new blocks
called Century Gateway
and Kadoorie Hill, develop-
ers reported that mainland-
ers bought just 5 per cent
and 10 per cent, respec-
tively.
This trend runs counter
to the view that there has
been a wave of capital flight
from China this year with
estimates of $200bn-plus. It
supports instead the view
… as mainland buyers of property shy away
Proportion of Chinese mainland buyers in Hong Kong (%)
40
30
20
10
0 though, CapEco is much
Oct Q1 2007 08
FT Graphic
that companies on the
mainland have been hold-
ing on to US dollars they
have received in payments.
Either way, the pressure
of funds flowing into Hong
Kong from China does not
look huge. The sharp rally
in the renminbi against the
US dollar suggests that less
money may be seeping out
of China.
So, the main area that
could be seeing the money
inflows then is Hong Kong’s
banks, where deposits grew
by 1.3 per cent, or about
HK$99bn in September.
This though presents a
problem, as analysts at Bar-
clays note. Corporate credit
demand is weakening, espe-
cially compared with
2008-09, while cross-border
Total – primary
Total – secondary
09 10 11 12 Q3
Photos: Dreamstime, Getty
trade credit has weakened
as mainland China interest
rates have been cut and
liquidity improved.
Furthermore, demand for
mortgages is declining, with
analysts at Citigroup point-
ing out that some Hong
Kong banks have been
increasing commissions to
brokers to win more busi-
ness.
Competition to make new
loans of all kinds means
cheaper debt and lower
profitability. “We believe
that more capital inflows
and funding for the banks
combined with weakening
loan demand will result in
pressure on earnings and
margins [for Hong Kong
banks],” says Sharnie Wong
at Barclays.
tend to get picked off.
Whereas its US peer, the
S&P 500, has put in place
higher highs in the three
main surges over the past
two years, the UK index
appears cowed by 6,000.
Having a relatively small
tech sector has not helped
the Footsie keep pace.
Neither has the heavy
weighting given to resources
at a time of slowdown fears.
But, as Capital Economics
argues in a recent note, this
has left the valuations in the
UK stock market more
attractive than in the US.
Unfortunately, CapEco
doesn’t think that will help
much in the medium term.
“We expect a weak
economy and a partial break­
up of Emu to weigh on UK
equities through the end of
next year.” It believes the
FTSE 100 will end 2012 and
2013 around 5,600 and
5,000, respectively.
Over the next decade,
more optimistic, noting that
if various classic stock
valuation and company
financial metrics return to
their long­run averages “then
we estimate the average real
return [of stocks] would be
more than 8 per cent”.
jamie.chisholm@ft.com
Rolling global overview at:
www.ft.com/markets
UK equities
FTSE 100 index
6000
5500
5000
4500
2010 2011 2012
Source: Thomson Reuters Datastream

US Treasury on track to issue
f loating rate notes next year
By Michael Mackenzie
in New York
The US Treasury
announced $72bn of debt
sales for next week and said
it remained on track to
issue floating rate notes in
2013 but had yet to decide
on approving negative
interest rates for short-term
bill sales.
The Treasury said it
expected the Federal debt
ceiling would be hit by the
end of the year, but said
accounting manoeuvres
would extend its financing
options into early 2013. The
debt ceiling is not expected
to be resolved until Con-
gress addresses the fiscal
cliff of automatic spending
cuts and tax rises after the
election.
“We continue to expect
that these extraordinary
measures would provide
sufficient ‘headroom’ under
the debt limit to allow the
government to continue to
meet its obligations until
early in 2013,” said the
Treasury.
The Treasury Borrowing
Advisory Committee, a
group of bond dealers and
investors, told the Treasury
at their quarterly meeting
this week that a timely and
orderly resolution of the fis-
cal cliff by year-end would
help ease economic uncer-
tainty and boost the overall
outlook.
The Treasury told the
TBAC that they were on
schedule to conduct the
first Floating Rate Note
auction late next year.
Bond traders said the
delay reflected in part the
difficulty of selecting an
appropriate benchmark for
the new security. Candi-
dates range from Treasury
bills, the Federal funds rate
and Treasury general collat-
eral from the repurchase, or
repo market.
The question of allowing
negative rate bidding on
short-term bills had yet to
be determined, said the
Treasury, which wants the
bond market to study their
pricing systems and report
any operational issues that
could arise if negative rates
are allowed in the future.
This week’s quarterly
meeting between the TBAC
Trading Directory
and the Treasury was also
affected by hurricane
Sandy, with participants
speaking via a conference
call rather than gathering
in Washington at the Hay
Adams Hotel.
Representatives from
Goldman Sachs, BNY Mel-
lon, Credit Suisse and West-
ern Asset Management did
not participate on the call
after committee members
were informed that attend-
ance would be optional.
Next week’s debt sales
will comprise a $32bn three-
year note, a $24bn 10-year
issue and a $16bn 30-year
bond. The $72bn offering
will raise $8.9bn of new
cash as the Treasury meets
a $63bn redemption in mid-
November.

More news at
FT.com
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Bryce Elder every weekday
from 11am
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Slowing growth and the
leadership transition have
made investors wary of
China. Perhaps the perfect
time to seek opportunities
www.ft.com/bbchina
●Greece: in or out?
Athens and the troika
must stop muddling along
and decide now whether
Greece stays in the euro
www.ft.com/a­list
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effect on liquidity and the
eurozone government debt
market of the ban that
comes into force today
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@FTAlphaville
Reserve Bank of India proves coy on rate cut prospects
beyondbrics, the FT’s emerging markets hub
Since April – when the
Reserve Bank of India made
a surprise 50 basis point cut
in interest rates – before
every monthly policy review
meeting the markets
speculate that another cut is
coming, despite the fact that
inflation remains sticky and
high, writes Neil Munshi.
But the RBI seems
immune to hints and
suggestions.
Before the September
meeting, the government’s
catalogue of reforms was
seen as evidence that the
RBI would definitely cut
rates. The bank did not
oblige. And before last
Tuesday’s meeting, the
finance minister pledged to
nearly halve the fiscal deficit
by 2017, hoping to influence
the central bank. No dice.
Back in June, the bank
itself got into the act, with a
deputy governor saying that
the RBI had “elbow room” to
cut rates amid waning
growth. Low growth figures –
along with other
macroeconomic indicators –
have also been seen as clear
triggers for a rate cut. It
seems like wishful thinking.
Despite the failed hints, the
speculation has continued.
Until, perhaps, now. On
Tuesday, the RBI made it
clear that markets and
everyone else clamouring for
a cut shouldn’t expect one
until at least the start of
next year. In its policy
statement, the bank said:
“The projected inflation
trajectory . . . indicates a rise
in inflation before easing in
the last quarter. While risks
to this trajectory remain, the
baseline scenario suggests a
reasonable likelihood of
further policy easing in the
fourth quarter of [the fiscal
year ending in March 2013].
The above policy guidance
will, however, be conditioned
by the evolving growth­
inflation dynamic.”
To underline the point, the
bank said: “It is important
not to lose sight of the
primary objective of
managing inflation.”
Indian inflation
Annual % change in WPI
7.8
7.7
7.6
7.5
7.4
7.3
7.2
Jan 2012
Source: Thomson Reuters Datastream
A Prasanna, economist at
ICICI Securities, said it would
be a “reality check” for
markets, and may subdue
sentiment across the board.
“In the real economy there
will be some disappointment
that it’s going to be quite
some time until [the bank]
cuts, and the RBI indicated
there’s probably no space for
big cuts, so that will have an
effect,” he said.
Trading Directory
“In the near term,
sentiment has been affected
Our readers need your services
already, [in the] bond market
for sure and even in the
equity markets,” he added.
“It’s probably bigger in
financial markets – in the
real sector this is but one of
many issues which matter.”
To be fair, the source of
the confusion may have been
the RBI itself. When it
announced that surprise April
rate cut, it made it clear that
it could only act if the
government got its fiscal
house in order.
The government seems to
think that first­step reforms
and press conference
pledges are enough. But with
inflation still near 8 per cent,
and likely to rise still higher,
and the government only just Notice to advertisers
beginning to carry its weight Calls to the Financial Times advertising department may be monitored.
Acceptance of any advertisement for publication will be subject to the then current
after years of treating the FT TRADING DIRECTORY
terms and conditions of insertion of advertisements in FT publications. A copy of the
RBI as a crutch, it is clear terms and conditions of insertion of advertisements in FT publications can be
Sep Classified Business Advertising:
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www.ft.com/beyondbrics
28
Markets update
S&P 500 index
1480 Change
on day
-0.29%
1460
1440
1420 Latest
1400
Oct 2012 Nov
Source: Thomson Reuters Datastream
Mood cautious in wake of hurricane Sandy
GLOBAL OVERVIEW
S&P 500 gives up
earlier advance
Gold higher on
volatility concerns
By Jamie Chisholm
Early gains in stocks faded
as Wall Street returned to
the trading fold after its
two-day closure in the face
of hurricane Sandy.
Investor sentiment was
initially supported by a sec-
ond successive day of
mostly better than expected
corporate profits from Asia
and Europe, which helped
to counteract a generally
disappointing US reporting
season. The Asia-Pacific
region advanced 0.8 per
cent.
Yet there was a cautious
General Motors moves higher as Dollar comes under pressure
solid domestic sales provide respite
WALL STREET
By Anora Mahmudova
in New York
US equity markets opened
higher after a two-day clo-
sure but the gains quickly
fizzled out as trading vol-
umes rose.
The main US markets
were shut on Monday and
Tuesday after flooding of
the New York financial dis-
trict following hurricane
Sandy prevented thousands
of workers from reaching
their offices when transit
along the east coast was
crippled.
The reopening came as a
relief to investors as most
portfolio managers tried to
reduce their exposure to
stocks before key US jobs
data tomorrow and the
presidential election next
week.
Scott Wren, senior equi-
ties strategist at Wells
Fargo Advisors, said: “Trad-
ers do not want to have big
positions going into the
election so we will probably
see more of the same down
trend we saw in the past
few weeks.”
As volumes picked up
after the first few hours of
trading, volatility returned
to markets, sending the
CBOE Vix index, dubbed
Lufthansa outperforms as
prof it rise pleases investors
EUROPE
By Alexandra Stevenson
Lufthansa and Air France-
KLM surprised the market
with significantly better
than expected profits, eking
out a trend in otherwise
mixed markets yesterday.
Lufthansa reported that
operating profits rose to
€648m in the third quarter
against consensus expecta-
tions of €479m. The carrier
pledged to continue cutting
costs to maintain its profit
margins.
A warning that its book-
ing outlook for the fourth
quarter was unclear failed
to undermine investor sen-
timent. The company’s
shares rallied 7.3 per cent to
€11.79, as the wider Xetra
Dax fell 0.3 per cent to
7,260.63.
Its Franco-Dutch rival Air
France-KLM reported that
operating profits rose to
€506m in the third quarter
against estimates of €402m.
Shares climbed 8.4 per
cent to €6.45, against a 0.9
per cent fall on the CAC 40
index to 3,429.27.
● US equities
Wall Street edged lower in
the week’s first trading
session after the market’s
forced closure for two days.
Insurance companies saw
losses, while Facebook
shares fell after a post­IPO
employee lock­up expired
seam beneath the market’s
surface as traders sensed
political and economic risks
associated with Sandy.
An immediate pop for the
S&P 500 swiftly dissolved,
leaving the US benchmark
moderately lower by mid-
day in New York, pulling
Europe down with it.
The FTSE All-World
equity index was flat and
the FTSE Eurofirst 300,
which gained 0.9 per cent
on Tuesday when Wall
Street was closed, reversed
direction to trade down 0.3
per cent.
Away from stocks, risk
appetite was more mixed,
however, as shown by the
appetite for haven assets.
The dollar index was little
changed while US Treasur-
ies saw demand, pushing
10-year yields down 1 basis
point to 1.70 per cent.
The euro was 0.1 per cent
Wall Street’s “fear gauge”
4.5 per cent higher to 18.5.
The benchmark S&P 500
index, which initially
opened higher, was slightly
lower at 1,410.20. The Dow
Jones Industrial Average
was flat at 13,098.04.
In the first bit of eco-
nomic news since the shut-
down, the Chicago PMI rose
marginally to 49.9 in Octo-
ber from 49.7 in September,
weaker than the 51.0 con-
sensus.
In earnings news, shares
in General Motors were
sharply higher after the car-
maker’s third-quarter
results beat analysts’ esti-
mates.
The US’s largest car-
maker by revenues earned
solid profits in its domestic
business but was weighed
down by losses in Europe.
General Motors
Share price ($)
26
24
22
20
18
Aug 2012
Source: Thomson Reuters Datastream
The broader FTSE
Eurofirst 300 slid 0.6 per
cent to 1,096.38.
Strong third-quarter
results at Fiat Industrial
prompted its sister capital
goods company Fiat to push
up its 2012 targets. Trading
profits rose 91 per cent to
€575m in the third quarter
compared with a year ear-
lier, prompting it to change
its revenues and earnings
guidance for the full year.
The Italian truck and farm
equipment maker, which
was spun off from Fiat in
2011, lifted its trading prof-
its target for 2012 from a
range of €1.9bn-€2bn to
Lufthansa
Share price (€)
12
11
10
9 quarter, we see these as a
8
Nov 2012
2011
Source: Thomson Reuters Datastream
MARKETS
FTSE 100 index
6000 Change
on day
-1.15%
5900
5800
5700
Oct 2012
higher at $1.2968 and copper
rose 0.8 per cent to $3.54 a
pound as buyers emerged
after the red metal’s fall to
two-month lows.
Participation in the US
US stock market volatility
CBOE Vix index
20
19
18
17
16
15
14
13
Jul 2012
Source: Thomson Reuters Datastream
The stock rallied 8.2 per
cent to $25.18.
Rival Ford’s shares also
rose, up 6.3 per cent to
$10.96, with investors
responding to the car-
maker’s earnings results
released on Tuesday while
markets were still closed.
The company reported
robust profits, also driven
by sales in North America,
and earnings per share beat
consensus estimates.
Eaton, the industrial com-
ponents maker, cut fore-
casts for growth in the mar-
kets that it serves for the
third successive quarter
yesterday as it announced
third-quarter net income 5
per cent below the same
quarter last year.
Shares in the company
rose 3.6 per cent to $46.77.
Genworth Financial
Key indicators
Indices Close
S & P 500 1409.22
DJ Industrials 13077.42
Nasdaq Comp - -
Russell 2000 - -
VIX 18.77
US 10 yr Treas Bd 1.70
Oct
US 2 yr Treas Bd 0.29
more than €2bn. Fiat shares
rallied 3 per cent to €8.36,
against a 0.1 per cent gain
on the wider FTSE MIB
index to 15,539.71.
Elsewhere, a profit warn-
ing from Fresenius Medical,
the German healthcare
group, prompted selling of
the group’s shares.
The company cut its reve-
nues and earnings esti-
mates for this year and
reported third-quarter net
income of €270m against
consensus estimates of
€285m. Its shares fell 4.4 per
cent to €54.19.
ArcelorMittal, the world’s
biggest steelmaker by sales,
swung into a loss in the
third quarter, disappointing
the market. The group also
cut its dividend payments
for next year.
“With net debt moving in
the wrong direction, the
dividend being cut and
ArcelorMittal guiding
slightly lower for the fourth
disappointing set of results
overall,” analysts at
Oct
Nomura wrote. Its Amster-
dam-listed shares fell 6.4
per cent to €11.43.
★
Thursday November 1 2012
● UK equities
London stocks dropped as
BG Group fell heavily after
the oil and gas company
warned production levels
would not grow in 2013. Rival
energy peers such as BP,
Tullow Oil and Royal Dutch
Nov Shell moved higher
was patchy as Manhattan
struggled to overcome the
fallout from Sandy.
Worries about its impact
on gasoline supplies saw
RBOB futures soar 6.6 per
◄ As US markets
re­opened, Wall Street’s
“fear gauge” ticked
higher. The CBOE’s
Vix index of implied
equity volatility rose more
than 5 per cent, taking it
back above 18.5
► As optimism began to
show signs of fading and
investors moved out of
risky assets such as
stocks, the yield on the
10­year US Treasury bond
Oct declined
shares rallied 6.5 per cent to
$5.84 after the insurer
reported a profit as losses at
its mortgage unit narrowed.
MasterCard shares were
higher as the credit card
payment company
announced its third-quarter
results, beating consensus
estimates. It increased its
operational volumes thanks
to increased consumer
spending. The stock added
1.8 per cent to $460.75. Rival
Visa is scheduled to report
its results after the market
close.
Western Union shares
plunged 27.6 per cent to
$12.98 after the money
transfer and payments com-
pany cut its full-year fore-
cast.
The company also
reported its third-quarter
results on Tuesday. The
stock has been downgraded
by several analysts.
The technology-heavy
Nasdaq was 0.5 per cent
Day’s
change lower at 2,972.85, weighed
down by steep losses in
-2.72
Apple, its largest compo-
-29.79 nent.
Apple fell 1.7 per cent to
$593.55 after Tim Cook, the
company’s chief executive,
+0.96 reshuffled his top manage-
-0.02
ment, replacing senior soft-
ware executive Scott For-
0 stall on Monday. Retail
head John Browett also left
BG Group falls on
production fears
LONDON
By Michael Hunter
Energy stocks took traders’
attention with big names
from the sector among both
the largest risers and the
biggest fallers on the FTSE
100, which once again failed
to hold on to the 5,800-
point level.
London’s benchmark
index ended a nervous ses-
sion down 1.2 per cent at
5,782.7, a loss of 67.2 points.
A dizzying tumble for
shares in oil and gas com-
pany BG Group, sparked by
a warning that production
levels would fail to rise in
2013, provided the main
talking point of the day.
BG’s stock fell 13.7 per
cent to £11.48, taking it to
its lowest closing level
since September 2010.
The losses looked all the
more stark as shares in its
wider sector held firm.
BP continued to benefit
from a warm reaction to its
upbeat third-quarter num-
bers released on Tuesday,
gaining a further 0.1 per
cent to 443.3p following its
FTSE Eurofirst 300 index
1140 Change
on day
-0.60%
1120
1100
1080
Oct 2012
cent to $2.91 a gallon while
lumber futures have
jumped $10 – “limit up” – to
$331 per thousand board
feet as rebuilding demand is
expected to be brisk.
US government bonds
10-year Treasury yield (%)
1.9
1.8
1.7
1.6
1.5
1.4
Jul 2012
abruptly after just six
months in the job. Shares in
the most valuable company
on the S&P 500 index fell
11.5 per cent in October.
Facebook shares were
also sharply down, falling 3
per cent to $21.28 as the
lock-up period expired.
The expiration coincided
with the storm, and yester-
day was the first day that
the company’s employees
were able to sell about 230m
shares. Last week, when the
social network site
announced solid revenues
and beat estimates, the
stock soared, gaining nearly
20 per cent in one day.
Banking stocks were
among the best performers
with Goldman Sachs and
Morgan Stanley leading
gains. Shares in Goldman
rose 2 per cent to $121.87
while Morgan Stanley
added 2.4 per cent to $17.40.
JPMorgan added 0.9 per
cent to $41.53.
Some companies that
were originally due to
release results yesterday
were forced to postpone
their announcements.
Among those, McGraw-
Hill Companies, owner of
Standard & Poor’s, and
Ralph Lauren both resched-
uled for tomorrow. Time
Warner Cable rescheduled
its release for Monday.
4.2 per cent gain in the pre-
vious session.
Cairn Energy was 0.5 per
cent higher at 280.3p.
Meanwhile, Tullow Oil
made one of the best single
gains on the benchmark
index after upbeat news
from the exploration com-
pany’s Kenyan Oil pros-
pects. It said it found oil at
a second well in the north
of the country. Its shares
rallied 1.6 per cent to £14.04.
Oilfield services company
Petrofac made the best
Footsie gain, up 3.6 per cent
at £16.04. Traders said
hopes for a trend for better
contract news was driving
the rally.
Barclays was the second
biggest faller on the main
index after earnings from
its investment bank looked
disappointing within its
wider third-quarter results.
The stock fell 4.7 per cent to
227½p.
Insurance companies rose
after quarterly numbers
from Standard Life met
forecasts. The stock rose
2.2 per cent higher to 292p.
Its peer Resolution was 2.2
per cent higher at 218.3p.
● European equities
The FTSE Eurofirst 300
declined as ArcelorMittal
traded lower. The
Luxembourg­based
steelmaker said a slowdown
in China was hurting its
business. Lufthansa led a
Nov rally in airline stocks
Furthermore, there was a
concern that markets could
experience volatility as US-
based traders try to squeeze
all their end-of-month posi-
tion tweaking into the final
day of October.
Gold revelled in this envi-
ronment, jumping $15 to
$1,724 a troy ounce.
Adding to the uncertainty
were the imminent possible
political shifts in the
world’s two biggest econo-
mies.
The too-close-to-call US
presidential election takes
place on Tuesday.
The state of the US jobs
market will play a part in
deciding who claims the
Oval Office and so this is
adding political significance
to the economic importance
of tomorrow’s non-farm pay-
Oct roll report, the anticipation
of which perhaps provided
another excuse for more
CURRENCIES
By Alice Ross
The US dollar fell against
other big currencies, as
trading remained light after
US markets reopened in the
aftermath of hurricane
Sandy, although risk appe-
tite faded as the session
progressed.
The euro, pound, Austral-
ian dollar and Swiss franc
all recorded gains against
the US currency, helped by
better than expected third-
quarter corporate earnings
in Asia and Europe.
Sterling was 0.3 per cent
higher at $1.6138, shrugging
off a survey showing that
UK consumer confidence
was weaker than expected
in October, to rise in line
with global risk appetite.
The euro edged above
$1.30 in early trading ahead
of inflation data for the
Nikkei 225 Average
9200
Change
on day
9000
+0.98%
8800
8600
8400
Oct 2012 Nov
risk-averse traders to sit on
their hands.
Other key figures, to be
released today, come from
the official purchasing man-
agers’ index of China manu-
facturing, which arrive as
the country’s power transi-
tion progresses with the
new leaders due to be pre-
sented at next week’s party
congress.
Investors remain nervous
about the pace of growth in
the Chinese economy – and
its impact on corporate
health – but will be heart-
ened by signs across the
Asia-Pacific region that the
slowdown may be easing.
Data yesterday showed
production in South Korea
rose for the first time in
four months while the Tai-
wan economy returned to
expansion in the third quar-
ter and the unemployment
rate in Singapore fell.
eurozone showing a slowing
in the consumer price index
to 2.5 per cent in October.
The single currency was
initially helped by an
improving retail sector in
Germany, with retail sales
rising more than expected
in September in the euro-
zone’s largest economy.
But the euro later pared
gains and was just 0.1 per
cent higher at $1.2968, as
traders said month-end
positioning was driving
flows. Disappointing eco-
nomic data in the US also
damped risk appetite later
in the session, with Chicago
PMI figures lower than
expected.
The Australian dollar
rose 0.3 per cent to $1.0401,
helped by signs that the
housing sector was holding
up better than expected,
with building approvals
showing a strong rise in
September. However, inves-
● Asian equities
Japanese stocks rebounded
after falling sharply in the
previous session, as
corporate earnings offered
some comfort to investors.
The Nikkei ended October
with a 0.7 per cent monthly
gain
Markets updated at www.ft.com/markets
The Shanghai Composite
index underperformed the
region, however, gaining
0.3 per cent as high-profile
company profits were
mixed.
PetroChina missed ana-
lysts’ estimates but Indus-
trial Bank’s numbers were
well-received.
The news out of Japan
was less positive.
Weak exports caused the
country’s October manufac-
turing PMI to hit an 18-
month low.
Yet the Nikkei 225 Aver-
age rose 1 per cent, recover-
ing from Tuesday’s sell-off
on initial disappointment
over the Bank of Japan’s
asset-purchasing plan.
Bulls were emboldened by
the unusual joint statement
from the central bank and
the government stressing
their commitment to reduc-
ing deflation.
tors were still expecting the
Reserve Bank of Australia
to cut interest rates again
when it meets next week.
The Norwegian krone
posted a sharp gain after
Norway’s central bank said
it did not plan to sell the
currency to buy other
assets for its oil fund. Pur-
chases of overseas assets by
Norges Bank for the coun-
try’s giant oil fund are one
of the most closely watched
indicators for the krone.
The US dollar fell 0.8 per
cent to NKr5.6734, with
Norges Bank holding inter-
est rates at 1.5 per cent as
expected.
Meanwhile, the Canadian
dollar, another commodity
currency, fell after figures
showed lower than expected
GDP growth in Canada for
August. The US dollar rose
0.1 per cent to $1.0015.
www.ft.com/currencies

Thursday November 1 2012
F1 rolls into
Nascar
country
The return of the US Grand Prix is the latest
attempt to crack a lucrative but crowded
market, reports Andrew Edgecliffe­Johnson
A
few seconds into a drive that
will fling me around the Cir-
cuit of the Americas at
speeds of up to 170mph, it
becomes clear that Formula
One’s newest track will also be one of
its most distinctive.
The car that took Juan Pablo Mon-
toya to victory in the 2004 Brazilian
Grand Prix – adapted to squeeze in
two passengers plus the driver – accel-
erates up a 133-foot (40-metre) hill
before taking the sharp first turn.
The Hermann Tilke-designed circuit
22km outside Austin, Texas, is fast
and technical. It will need to offer
drivers and audiences many such
thrills at its inaugural race, the US
Grand Prix later this month, if it is to
repay more than $400m in investment
and find F1 fans in a country where
past attempts have failed.
Residents are split on the prospects
for a sport as flashy as F1. This is
Nascar country, where crowds well in
excess of 100,000 can gather to watch
races organised by the National Asso-
ciation for Stock Car Auto Racing.
Austin, meanwhile, is a hipster town
FT Formula One
where students sport “Keep Austin
Weird” T-shirts at indie music events
such as South by Southwest and Aus-
tin City Limits. Elroy, the poor ranch-
ing community where the track has
been built, looks about as far from
Monte Carlo as you can imagine.
Ramshackle wooden buildings dot
the scrubby land, many with rusting
trucks or spray-painted “for sale”
signs in front, and a billboard warn-
ing of wildfires looms over the circuit
entrance.
There are as many earth-moving
vehicles as cars around the 3.4-mile
(5.5km) track as organisers hurry to
finish the facilities before the race
weekend, and the nearest thing to cor-
porate hospitality outside the fences
is Wild Bubba’s Wild Game Grill.
Drivers have questioned whether
the investment in bringing F1 to the
US will prove worthwhile, with Sebas-
tian Vettel, the reigning world cham-
pion, saying: “The market is huge, but
does America really care?”
Yet on the hot day last month when
1978 F1 world champion Mario
Andretti drove the inaugural lap in a
FT SPECIAL REPORT
www.ft.com/reports
1979 Lotus Cosworth, the investors
Inside »
and politicians behind the Circuit of
the Americas (COTA) confidently pre-
dicted rapid financial returns and a
new era of US interest in motor rac-
ing’s richest sport.
The financial payback will be “tre- Telemetry
mendous”, says Red McCombs, the 85-
year-old former owner of the San Team engineers
Antonio Spurs basketball team and search for an
Minnesota Vikings NFL team who is
one of COTA’s lead investors. advantage
“With sales so far, we’ve got a over their rivals
chance at really knocking the cover
off the ball,” he says. Page 2
Geoff Moore, COTA’s chief market-
ing and revenue officer, adds: “We
have the best type of research, called Interview
ticket sales.”
Almost all of the 120,000 tickets for FIA president
the Grand Prix have been sold, sets out his
according to Steve Sexton, COTA
priorities for
motorsport
Elroy, where the track has Page 3
been built, looks about as
far from Monte Carlo as Technology
you can imagine UK shows its
mettle with
president. Tickets are being priced engineering
cautiously, with three-day passes
starting at $159 – akin to Austin’s
expertise
biggest music events – although the Page 3
average ticket price will be $400-$500.
Ticket sales are only part of COTA’s
business model, Moore says, as the
circuit will also make money from
parking, food and beverage sales, and
sponsorship from the likes of Pirelli.
Margaret Gómez, commissioner of
Travis County’s fourth precinct,
where the circuit is located, estimates
that $161m has been pumped into the
local economy so far, including $12m
in sales tax. The official estimate from
the Texas comptroller’s office is that Interview
the race will generate almost $250m,
although Lee Leffingwell, Austin’s In­form Sebastian
Democratic mayor, puts its impact on Vettel is homing
the local economy at $300m.
The mayor’s estimate of the annual in on his third
benefit to the area is even higher:
“The impact from all the events could
consecutive
be ultimately as high as $1bn,” he world title
predicts. The development was mostly
All­American: F1 and Nascar will compete for attention of US fans Boston Globe/Getty Continued on Page 3
Page 4
2 ★ FINANCIAL TIMES THURSDAY NOVEMBER 1 2012

FT Formula One

Every second counts in race for first place

Telemetry Team engineers pore over mountains of data at every Grand Prix as they search for an advantage over their rivals, writes Roger Baird

W
hen disaffected
McLaren driver Lewis
Hamilton published a
graph of his and racing
partner Jenson Button’s
qualifying laps on the eve of Septem-
ber’s Belgian Grand Prix on Twitter,
he caused a storm that highlighted
the growing importance of telemetry
in Formula One.
A team’s telemetry is usually top
secret, because it reveals detailed
information about the car’s perform-
ance and driver reaction times.
However, Hamilton’s 1.2m followers
on Twitter could now study how the
McLaren drivers were coping with the
circuit – as, more importantly, could
his 11 rival teams on the grid.
Hamilton apparently wanted to
show the difference a rear wing
upgrade had made to Button’s per-
formance compared with that of Ham-
ilton, who had not used the upgrade.
Unsurprisingly perhaps, the 2008
world champion has since announced
he will drive for the Mercedes team
next season.
First introduced in the late 1980s,
telemetry in F1 is the transmitting of
streams of live data from the car to
the pit. A modern F1 car is fitted with
about 130 sensors, which send enough
information to fill several telephone
books by the end of a two-hour
race via a radio aerial fitted to the
car. Particular attention is paid to
information on the car’s engine,
clutch and gearbox.
“These are the key things in a
race that keep the car going,” says
Elliot Dason-Barber, head of research
and development at the Caterham
F1 team.
All the teams are required by the
Fédération Internationale de l’Auto-
mobile, the sport’s governing body, to
use the Advanced Telemetry & Linked
Acquisition System (Atlas) software
developed by McLaren.
As well as allowing the FIA to cut
costs, a standardised system makes it
easier for the body to spot banned
devices that can, for instance,
improve traction.
There are always new elements to
consider in the fast-changing world of
F1. This season, for example, teams
took time to come to terms with the
new Pirelli tyres, which are made out
of compounds different from the
Data driven: Lewis Bridgestone tyres the teams had pre-
Hamilton checks viously used. That means the teams
his performance in look closely at the wear, grip, pres-
the McLaren pit sure and temperature the tyres can
stand under varying weather condi-
tions at different circuits. The system
also measures the brake and accelera-
tor movement of a driver as well as
his steering.
At McLaren, about 20 of the 47 engi-
neers it takes to races work on the
telemetry, with a further 30 or so
doing the same thing back at the
team’s “mission control” headquar-
ters in Surrey, where the information
is instantly relayed.
Jonathan Neale, McLaren Racing
managing director, says: “The pitwall
is noisy, and you only get a limited
view. Back at mission control you can
take more considered decisions.”
This means that decisions, such as
timing of pit stops, are taken at mis-
sion control, whereas more pressing
matters, such as when to retire a fail-
ing car, are taken at the track.
At smaller teams such as Caterham,
which has a less sophisticated infra-
structure, the telemetry is run from
the pitwall.
At middle-of-the-grid Williams, data
are relayed between the pit and
engineers at the team base in Oxford-
shire, who then put forward sugges-
tions, although the pit team has the
final decision.
Teams allocate about 5 per cent of
their annual budgets to telemetry,
which means the leading outfits spend
£10m-£13m on such technology.
Yet telemetry not only allows teams
to collect information in real time but
also to run models during a race
about the cars’ performance. The race
engineers studying the data even
make predictions about upcoming lap
times, which the drivers are expected
to meet.
A leading team such as McLaren,
with a history of racing going back to
the 1960s, have a huge store of data
with which to build detailed models.
By comparison, Caterham, who are in
their third year of racing (the first two
as Team Lotus), have a much smaller
pool of knowledge to draw from.
Over the past decade, telemetry has
grown in importance as the FIA has
sought to reduce costs and keep the
grid competitive. One of the ways the
FIA has done this is by limiting the
number of test days and wind tunnel
time an outfit can clock up.
Mark Gillan, Williams’ chief opera-
tions engineer, says: “In the late 1990s
when I started in F1 you could test for
two to three weeks in Spain at the
start of the year.”
At that time a team could also
spend long weekends testing upgrades
between races. Now, however, teams
can only test for about 12 days a year.
“This means the quality of the data
you gather from telemetry has
become vital to the team. It tells you
how upgrades are working and feeds
directly into races,” says Gillan.
In the 1990s the sport experimented
with so-called two-way telemetry,
which allowed engineers to make
changes remotely to the workings of a
car’s engine independent of the driver
during a race. This was banned in
2003 by the FIA, which ruled a racing
car must be driven “alone and
unaided”.
Critics say this aspect of the tech-
nology goes to the heart of the age-old
question about F1: which is most
important – the driver or the car?
McLaren’s Neale says: “It is the job
of the driver and the engineer to get
the best out of the car, and telemetry
helps. But drivers still have a four- to
six-inch margin of error when taking
‘Data tell a turn. It is still a very human
endeavour.”
you how But telemetry can make life difficult
upgrades for a team’s second driver, who has
fewer excuses for being slower than
are working the lead driver.
and feed Caterham’s Dason-Barber adds: “It
can help the second driver to see
directly into where he is losing time. But it can
also destroy his confidence.”
races’ Drivers may take real risks on the
track, but the virtual world of
telemetry looks set to be a key factor
in the sport for some time.

Mercedes hope Hamilton will

be final ingredient in its formula
the German insurer, and
Constructors Monster Energy, the US
Recruitment of the drinks company.
The team have also over
British driver is part the past three years built
Next year is the last one
for Formula One in its cur-
Backing comes not rent guise – a new formula
for chassis and engines will
only from Daimler be introduced from 2014.

of a wider strategy,
writes James Allen
The move by Lewis Hamil-
ton to join Mercedes, turn-
ing his back on the
McLaren team with which
he has been associated with
since he was a teenager, is
a significant one for the
German outfit.
Despite the investment
and backing of parent com-
pany Daimler in Stuttgart,
Mercedes has just a solitary
win to show for its efforts
so far this season.
Three years into its own-
ership of the team, Mer-
cedes are under pressure to
win races and challenge for
world championships –
hence the bold decision to
hire arguably the fastest
driver on the grid.
Which is why Mercedes
are following closely the
pattern set by other suc-
cessful teams in recent
years, such as Red Bull
Racing, Ferrari, Renault
and, going back to the
1990s, Benetton.
The route to success has
four component parts: first,
put in place strong manage-
ment; second, secure long-
term financial backing from
sponsors and team owners;
third, invest heavily in
infrastructure and talented
technical staff (which can
take some time); fourth, slot
in the final piece of the jig-
saw: a superfast driver.
While this might sound
simple, many teams have
tried and failed.
Most would agree that
Mercedes have achieved the
first three of these aims.
The team are headed by
Ross Brawn, a master tacti-
cian who has won world
titles with three different
teams and the man who led
the technical side of Ferrari
during their all-conquering
period in the first decade of
this century.
The financial backing
comes not only from Daim-
ler but also from partners
such as Petronas, the Malay-
sian oil company, Allianz,
up the facilities at their
headquarters in Brackley,
Northamptonshire, to be on
a par with their leading
competitors. They have, for
example, upgraded their
wind tunnel and invested in
their simulator facilities.
Mercedes also own a
space-age engine-building
facility nearby and have
hired a large number of
experienced engineers, tak-
ing the headcount at Brack-
ley from about 400 at the
start of 2010 to some 550
today. The hiring of Hamil-
ton means no place at Mer-
cedes for driver Michael
Schumacher, who in the
three years since his come-
back has scored only one
podium finish. But at 43,
the German’s future was
clearly behind him in a
sport where there is little
room for sentiment, even
for a seven-times world
champion.
None of this means Mer-
cedes are guaranteed to
challenge for the title next
season. Benetton hired
Schumacher as a raw youth
in 1991, but it took until
1994 for him to win the first
of his two world titles for
the team.
Renault handed Fernando
Alonso a race seat in 2003,
two years before his back-
to-back world champion-
ships. And while Red Bull
started building up their
team seriously from 2005,
Sebastian Vettel did not
come on board until
2009. Vettel won consec-
utive world titles in
2010 and 2011, and is
favourite to make that
three in a row this sea-
son. So the target for
Mercedes and Hamilton
is likely to be challenging
for the world champion-
ship by 2015.
Changes to the rules
of the sport, how-
ever, mean suc-
cess could come
sooner.
The brains of
the operation:
Ross Brawn
EPA
but from partners Engines will be small-
capacity, turbocharged
such as Petronas hybrids, while chassis will
feature a different aerody-
namic concept. As there is a
freeze on development of
the existing V8 engines
there is little to choose
between the engines from
Mercedes, Ferrari, Renault
and Cosworth in perform-
ance terms.
From 2013, however,
engines will again be a per-
formance differentiator, and
Mercedes believe their new-
generation engine under
development is a very
strong prospect.
As for Hamilton, his rea-
sons for cutting his ties
with the McLaren team
which had nurtured him
from the age of 13 were two-
fold: a strong financial and
commercial package, and a
fresh challenge.
“To stay would have been
easy, [but] I wanted a chal-
lenge,” says Hamilton.
“I want to try working
with new people. I want a
challenge of taking a car
that is not very successful
and the exciting journey of
trying to [make it] as suc-
cessful as the car I am in
now.”
Asked if he wants to emu-
late Schumacher, who went
to Ferrari in 1996 when it
was uncompetitive and
helped to turn the team into
world beaters, Hamilton
replies: “That’s it, exactly.”
He adds: “I don’t feel like
any of the drivers are doing
that nowadays. I could take
the easy route and stay here
and cruise on with a great
team, a great car, making
decent money. But that’s
not what I want to do… I
want to go and help a team
that are struggling to get to
the top and start winning.
“That is going to be… the
most satisfying feeling if we
do get there. It is a big
if, but looking at
the pattern of
F1, Mercedes
have put all
the right
pieces in
place to
make it a
reality.”
FINANCIAL TIMES THURSDAY NOVEMBER 1 2012 ★ 3

FT Formula One

Todt tries the Talent­spotting

process moves
consensual up several gears
approach to Young drivers
lier this year won the
team’s first Grand Prix for

regulation
Teams provide cash
and career guidance,
writes Simon Gray
Pick any of the current crop
of Formula One drivers –
Fernando Alonso, Romain
Grosjean, Nico Hülkenberg
– and it is likely they began
their racing careers in the
world of karting.
Interview FIA president sets out his priorities A couple of decades ago
the top prospects in interna-
for motorsport to Roger Blitz and James Allen tional karting were largely
unknown. But today, they
are monitored by F1 teams
looking for drivers with the
nearly eight years with vic-
tory in Spain.
By contrast, the Red Bull
junior team established by
Helmut Marko more than a
decade ago deploys a great
deal of effort and money to
help young drivers in their
development, and its ambi-
tions have become more
demanding over the years.
“When we started in 2001
the idea was to help young
drivers on their way into
F1, but now we only sup-
port a driver who has the
potential to win there,”
Marko says.
He says Red Bull is look-
ing to identify drivers at

J
ean Todt is a much-travelled
man. The 66-year-old French-
man has visited 125 countries
in his three years as president
of the Fédération International
de l’Automobile, F1’s governing body,
meeting among others Ban Ki-moon,
UN secretary-general, president Dilma
Rousseff of Brazil, and Jim Yong Kim,
the World Bank president.
The issue at the top of Todt’s
agenda is road safety. An estimated
1.2m people died in car accidents in
2010, 90 per cent of them in developing
countries. Without action, he warns,
this figure is projected to rise to
almost 2m by the end of the decade.
Todt’s point is that although we do
not know how to cure Parkinson’s dis-
ease or Alzheimer’s, we do know how
to reduce road deaths.
“If you take developing countries,
there is no education, no implementa-
tion. There is corruption, road infra-
structure is very poor and cars are
not in good condition,” he says.
The FIA’s remit extends as far as its
resources will stretch. If road safety
for developing countries is one prior-
ity, green cars in richer ones is
another. Todt is heavily involved in a
new series, called Formula E, which
will promote the electric car with
races in a number of global cities.
But the FIA is nothing without For-
mula One, and Todt is anxious the
body’s influence in motorsport’s pres-
tigious series is not weakened.
His predecessor, Max Mosley, was a
confrontational president dominating
the F1 landscape over four terms
spanning 16 years, in an often
close working relationship with
Bernie Ecclestone, the sport’s com-
mercial supremo.
Todt credits his predecessor with
promoting F1 and making road safety
a priority. “Saying that, we are
different,” he adds, sitting in the pres-
idential office in Paris he inherited
from Mosley in 2009. “Was [Mosley]
better? I’m sure he was better on cer-
tain things, worse on some others,”
Todt says.
Todt’s elevation to the FIA presi-
dency was to a large extent because
he was the antithesis of the feisty
Mosley. Todt, who started out as a
rally co-driver in 1966, later becoming
team principal of Ferrari, certainly
has a more consensual approach than
his predecessor. “If we can achieve a
result by harmony, it will always be
better,” he says.
That said, Todt does not have the
best of hands in front of him. Over a
decade ago, the FIA signed away F1’s
commercial rights to an Ecclestone
company for 100 years.
This is one difference between it
and, for example, the International
Olympic Committee, which has
retained its commercial rights.
Three years into his presidency,
Todt complains about the FIA’s lim-
ited resources. Last month he met the
teams and Ecclestone in Paris in an
attempt to broker a new Concorde
Agreement on how to distribute the
sport’s commercial revenues until
2020. Todt is looking to cut a far bet-
ter financial deal for the FIA without
reducing its influence.
It is a tough act to pull off. Eccle-
stone has been his principal adversary
since he became president, with the
pair arguing about Todt’s demand for
more fuel-efficient cars on the grid. If
the FIA is seeking a greater share of
the spoils, Ecclestone can be sure to
demand something in return.
Todt insists he is no dictator, but he
does want the FIA’s regulatory role to
be “respected” and says he will
not give up the FIA’s rule-making
responsibilities.
Conflict and contradictions are
never far from the surface in F1.
While Todt insists on greener engines,
he is also demanding the teams
Honest broker: reduce their overall costs and wants
FIA president the more successful ones to pay more
Jean Todt is to the FIA in F1 entry fees.
seeking a new While most of the 12 teams want the
deal over how FIA to regulate on restricting costs,
F1’s revenues Red Bull Racing and its junior Scude-
are distributed ria Toro Rosso team have dragged
their heels, and Todt has been reluc-
MAXPPP
tant to go with the majority, prefer-
ring to seek full consensus.
“It is quite a sensitive decision,”
says Todt with characteristic under-
statement. A new resource restriction
agreement might not now be imple-
mented until 2014.
Mosley, who was wedded to the idea
of forcing such an agreement on the
teams, recently urged his successor to
be less timid and to confront them.
Yet Todt does not sound like a man
preparing to change tack. “Since I
have been president, I have tried to
avoid as much as possible any kind of
controversy or big statements” which
could be misinterpreted, he says.
Three years ago when he met with
the teams on taking over as FIA presi-
dent they were sceptical about
progress. However, they are more
comfortable now, he says.
“There is no point making big state-
ments, to be too high-profile... We
have a programme with some
priorities and each programme is
probably not moving as quickly as I
would wish. But we are addressing a
lot of points under the pillars of sport
and mobility.”
But he adds: “We cannot be a feder-
ation without having any revenue. So
where do we find our revenues?”
Nothing is ever straightforward in
F1 and it will be some time before the
impact of a new Concorde Agreement
is understood. The early signs from
the Paris talks were that the FIA was
prepared to share rule-making duties
with a select number of teams and
Ecclestone in a new F1 strategy
group. Other teams worried that this
group would soon come under the
control of Ecclestone.
Todt may be playing a longer game,
and, like his predecessor, it could take
more than one presidential term
for Todt to stamp his authority on
motorsport.
And while Todt believes the FIA is
“on the right road”, his work is far
from complete, particularly in road
safety. Expect him to continue with
his globetrotting.
ability to compete at the
highest level, then backing
their choices with money
and career guidance.
One such team is Red
Bull Racing, whose junior
team was launched as a
stepping stone to F1 before
the energy drinks group
had its own team in the
elite level of motorsport.
Its crowning achievement
is the emergence of Sebas-
tian Vettel, F1’s youngest-
ever double world cham-
pion, who set the paddock
alight by winning the 2008
Italian Grand Prix for Red
Bull’s second-string opera-
tion, Scuderia Toro Rosso,
before the senior team had
won a race itself.
Grooming future champi-
ons is an expensive busi-
ness. “To get from the entry
level of motor racing to
[junior series] GP2, on the
threshold of F1, will cost
something like €5m,” says
Mark Blundell, a former F1
driver who now runs 2mb
Sports Management, a
driver management agency.
Lewis Hamilton, the 2008
world champion, was spot-
ted by McLaren when he
was little more than a child,
and the Englishman’s
achievements are another
example of what teams can
achieve by nurturing talent,
rather than having to
acquire it fully fledged,
sometimes at considerable
expense, from rival outfits.
Sir Frank Williams,
founder of the Williams F1
team, says their talent-spot-
ting process relies on leg-
work rather than running a
stable of young hopefuls,
few of whom are likely to
make it to the top.
“You listen to the gossip
ever younger ages – in their
early teens – although he
admits: “Whether this is a
good thing remains to be
seen. But full support is only
given once they are active in
formula sport, between 15
and 16. We support the
driver with selected teams
and oversee their physical
and psychological fitness.”
Vettel began his career in
karting before joining the
Red Bull junior team and
progressing through For-
mula BMW, Formula Three
and World Series by
Renault. Unusually, he did
not compete in GP2, F1’s
Red Bull is looking
to identify drivers
at ever younger
ages – even in
their early teens
immediate feeder series,
which Williams says is a
good indicator of ability
and an important step in
driver development.
To be a test driver is a
well-established route to F1,
but Blundell, who started in
that role for Williams, says
the sport’s testing restric-
tions now make it much
more difficult to bridge the
gap to the top level.
“As an F1 test driver I
would have done 10,000km
of testing in a year,” he
says. Restrictions on the
testing of F1 cars mean this
would not happen today.
The best opportunity for
test drivers to shine, Blun-
dell says, is during the first

UK shows its mettle with engineering expertise

Technology
Motorsport is key to
a vibrant cluster of
UK companies, says
John Murray Brown
Propped up against the wall
of Rob Lewis’s office is a
prototype chassis part that
will be used to test the aero-
dynamics of a Le Mans rac-
ing car.
It is just one example of
the sort of work that is
undertaken by TotalSim, a
Northamptonshire-based
company Lewis set up in
2007 to provide Formula
One teams and other
motorsport organisations
with computational fluid
dynamics analyses of how
airflow behaves around
fast-moving cars.
“We can even model fuel
cell fill and slosh,” says
Lewis, who started his
career at the former Rey-
nard Motorsport F1 team.
“You take track data
through a corner, apply the
lateral and vertical
accelerations and then say
to the engineers: ‘These are
the forces on the tank... ’
That’s quite an intensive
calculation.”
TotalSim is one of the
estimated 3,000 companies
that make up the UK’s
motorsport supply chain, a
unique industry cluster
worth about £6bn to the
UK economy.
According to the Motor-
sport Industry Association,
the trade association for F1
manufacturers and compo-
nent makers, at least half of
these supply companies’
sales are to motorsport
teams. The companies
exploit their ability to
deliver promptly, at high
specification and in low vol-
umes – frequently single
units or small batch runs.
This expertise is funda-
mental to the UK’s position
at the centre of F1 manufac-
turing, says Chris Aylett,
MIA chief executive.
“The reason most of the
foreign [F1] racing teams
are here is the skills and
knowhow of the supply
chain,” he says.
Before the second world
war, most racing car manu-
facturing was done in conti-
nental Europe, with the
German, Italian and French
volume car producers using
racing as an extension of
their research and develop-
ment activities.
Today eight of the 12 com-
peting teams in F1 are
located in the UK, many in
the so-called Motorsport
Valley, the corridor either
side of the M40 motorway
that runs through the coun-
ties of Northamptonshire,
Buckinghamshire and
Oxfordshire.
“We are not bothered
about which anthems are
played on the podium,”
says Aylett, pointing out
that while Red Bull Racing
may be Austrian and its
lead driver Sebastian Vettel
a German, “everyone in the
industry knows the car was
made in Milton Keynes in
Buckinghamshire”.
Manufacturing racing
cars is an activity with a
large R&D content. Aylett
says spending on R&D in F1
and other motorsport is
equivalent to about 30 per
cent of sales, or twice the
figure for the pharmaceuti-
cals industry.
“Every race is like an
intensive R&D test-bed.
This is privately funded
research just to stay ahead
of the competition,” he says.
In tracing the develop-
ment of UK racing car man-
TotalSim client: Team GB
ufacturing, Martin Beck-
Burridge, co-author of Brit-
ain’s Winning Formula, an
account of the UK’s world
leadership in motorsport,
points to the wartime atti-
tudes of innovation and
can-do that prevailed in the
military services.
But he says much of the
credit is down to a handful
of pioneering engineers,
many of them with back-
grounds in aerospace. One
of the key British compa-
nies was Cosworth, the
engine maker started in 1958
by Mike Costin and Keith
Duckworth, both of whom
were former De Havilland
aircraft engineers.
Cosworth continues to
spawn start-ups today. One
example is Performance
Projects, an engineering
consultancy based near the
Silverstone racetrack spe-
cialising in suspension sys-
tems. Managing director
Chris Horton, a former Cos-
worth engineer, started the
company with Terence
Goad, a former engineer
with the Toyota and
Renault race teams.
“The shelf life of our prod-
uct is a season at best but
more typically a month,”
Horton says. The lead time
between receiving an order
and delivery is “almost yes-
terday”, he jokes.
Alan Rollason, managing
director of Advanced Chem-
ical Etching, a Telford-
based metal component
manufacturer, says compa-
nies working in F1 have to
be able to meet demanding
deadlines to compete.
“We had an order from an
F1 team at 11 o’clock last
Friday. We took the design,
created the image and proc-
essed the part, and it was
inspected, packed and with
a courier in five hours from
start to finish,” he says.
Lewis at TotalSim
believes engineers involved
in motorsport have learnt
how to innovate.
“We are good at doing an
80 per cent job. In motor-
sport you cannot afford to
do 100 per cent – you don’t
have time,” he says.
This innovative edge is
one reason why TotalSim’s
future will increasingly
involve sectors other than
motor racing.
Ahead of the London
Olympics, the company
worked closely with Team
GB to design clothing and
equipment used by its all-
conquering cycling team. A
mannequin with the racing
suit worn by gold medallist
Victoria Pendleton (pic-
tured) greets visitors to
TotalSim’s Brackley offices.
The company has also
worked with snowboarders
competing in the winter
Olympics, which require a
very different set of skills
from those for F1.
“The simulation work we
did on this had more in
common with the gaming
industry or the movie
industry than with engi-
neering,” Lewis says.
in the pit lane, read the
motorsport publications
and monitor the junior for-
mula results,” he says.
It is from Formula Three
onwards, Williams says,
that it becomes possible to
see which drivers have the
talent – and determination
– to progress.
“You are looking for driv-
ers who dominate the cate-
gories they race in at every
level, as Lewis [Hamilton]
did... especially in the most
competitive series,” he says.
This approach helped alert
Williams to the potential of
Pastor Maldonado, who ear-
Contributors
James Allen
F1 Correspondent, FT
Roger Baird
Freelance journalist
Roger Blitz
Leisure Industries
Correspondent, FT
Andrew Edgecliffe­Johnson
Media Editor, FT
Simon Gray
Freelance journalist
John Murray Brown
Midlands Correspondent, FT
practice session of a Grand
Prix weekend. “The shop
window is there, and it’s
down to you to make it
count,” Blundell says.
But that brings its own
problems, says Valtteri Bot-
tas, a Williams test driver,
because it means he is not
driving anywhere else.
“A few years ago, there
was a lot of testing, younger
drivers could get much
more mileage and the team
could see which drivers
were good. Now, Friday
testing is the only chance to
get some time in the car,”
the Finn says.
»
Robert Orr
Commissioning Editor
George Kyriakos
Production Editor
Michael Crabtree
Picture Editor
Steven Bird
Designer
Philip Parrish
Sub­editor
For advertising contact:
Tom Shepherd
+44 (0) 207 873 4406

F1 show rolls into Nascar country as Texas prepares for US Grand Prix
Continued from Page 1
funded by local investors,
but Rick Perry, the Texas
governor who campaigned
for this year’s Republican
presidential nomination,
agreed to use the state’s
Major Events Trust Fund to
underwrite $25m of the
licensing fees F1 demands.
He was sued by a tax-
payer group, which perhaps
explains why organisers are
keen to emphasise the
return they expect on the
investment. “Texas wasn’t
willing to risk taxpayers’
dollars, but they are willing
to reward performance,”
says Bobby Epstein, a
former bond trader and
Austin developer who has
led the COTA project.
McCombs adds: “I don’t
think [Bernie] Ecclestone
[F1’s commercial chief]
would ever have agreed to
do something here... with-
out that state financial sup-
port. I think when he saw
we had that, he thought
maybe these guys from
Texas can get this done.”
Austin may be better
known for music and tech-
nology, but it is a fast-grow-
ing, young city of 800,000
people, says Epstein.
Its location between Dal-
las, Houston and San Anto-
nio puts 22m people within
three hours’ driving dis-
tance. The local college foot-
ball team, the Texas Long-
horns, can bring in 100,000
fans to the Memorial Sta-
dium, but Austin has no
professional sports fran-
chises to compete for atten-
tion. “Whether it is a
Nascar country or a music
city, none of this means it
can’t be more,” Epstein
says. “We are competing not
for the Nascar crowd but for
the sporting enthusiast.”
The circuit was designed
so that visitors could see
much more of the track
than many rival venues
allow. COTA is in talks to
host everything from tennis
and beach volleyball tour-
naments to conferences and
concerts.
It is five years since the
last F1 race in the US, on
an Indianapolis speedway
track, and the sport has
always attracted smaller
audiences in the US than in
Europe. But NBC Sports,
the US broadcaster, has
signed a four-year deal with
F1, which Ecclestone, on
announcing the contract,
said would promote the
sport “to a level not seen
before in the US”.
One hitch, however, is
that F1’s governing body
has deemed New Jersey’s
planned Grand Prix of
America road course not
ready, pushing its inaugu-
ral race back a year to 2014.
Epstein admits he has
“mixed emotions” about the
news. It may help COTA to
be first off the grid, he says,
but “in the long run, build-
The circuit will let
visitors see much
more of the track
than many rival
venues allow
ing the sport in the US
needs more exposure than
one race a year”.
One advantage for Texas
is Austin’s “tremendous
Latin influence”, he notes,
as its proximity to Mexico
has spurred ticket sales to
fans of Sergio Perez, the
Mexican driver who races
for the Sauber team.
About 20 per cent of tick-
ets have been sold to 37
countries outside the US,
Leffingwell says, and hopes
are high of a large global
TV audience.
“You ain’t seen nothing
yet,” Texas state comptrol-
ler Susan Combs told an
opening day crowd at the
track. “You’re going to see
the global markets taking a
look at Austin.”
The city still has work to
do to prepare for the influx,
Leffingwell admits, but he
is confident Austin can
accommodate the newcom-
ers without losing its indi-
viduality. “I don’t think
there’s any question Austin
will continue to be weird,”
he says reassuringly.
4 ★
In­form Vettel takes championship by the horns
Interview
Sebastian Vettel
Double world champion tells
James Allen how he learnt
to bide his time before his
season finally came good
S
ebastian Vettel has already
achieved more in his short
career than most Formula
One drivers do in a lifetime.
F1’s youngest-ever double
world champion, with 26 race wins
under his belt – one more than
greats Jim Clark and Niki Lauda –
the German goes into this weekend’s
Abu Dhabi Grand Prix leading the
championship as he and his Red Bull
Racing team chase their third
consecutive world title.
All this and Vettel has not even
clocked up 100 Grand Prix starts.
That the 25-year-old is now the
championship favourite is all the
more remarkable because he and his
team trailed rival Ferrari for a large
chunk of the season. But consecutive
victories in the past four races – in
Singapore, Japan, South Korea and
India – have seen Vettel overtake
Ferrari’s Fernando Alonso, another
double world champion, to lead the
series with three races to go.
“This year we’ve had ups and
downs,” Vettel tells me during a
break in practice ahead of the Indian
Grand Prix. “Sometimes we mess up,
but we were able to score points
consistently, which is why we are
now in a very good position [in the
championship].”
Vettel grew up in the small town
of Heppenheim, in western Germany,
where his father, Norbert, worked as
a carpenter. Vettel senior competed
in amateur rallycross events, and the
older man’s enthusiasm for
motorsport rubbed off on his son,
who was karting at the age of three
and racing at eight.
By 2003, aged 15, he had graduated
to Formula BMW, finishing second in
his debut season and winning the
title the following year. Tipped even
then to follow in the footsteps of
seven-times world champion Michael
Schumacher – Vettel’s hero growing
up – both BMW Sauber and Red Bull
invested in the young driver, with
the former giving him his first F1
outing as a 19-year-old reserve. But it
was Red Bull that provided the
opportunity to race, and he
delivered, winning the Italian Grand
Prix for their junior Scuderia Toro
Rosso team in his first full season in
2008 and taking back-to-back world
championships in 2010 and 2011.
These two titles came about in
very different circumstances. He was
behind for all of the 2010 series, only
leading the points table on one
occasion – after the last race. The
following year he was untouchable,
winning the first four Grand Prix of
the season and wrapping up the title
with four races to spare.
This year has been more like 2010.
Red Bull’s problems in the early part
of the season were partly as a result
of a rule change that removed one of
their leading technological advantages
– the so-called exhaust blown diffuser.
That device guaranteed that the
rear end of the Red Bull was pushed
down to the ground, giving it lots of
grip through corners, thanks to
exhaust gases blown through an
aerodynamically sensitive area of the
floor – the diffuser – to create
downforce.
More than 40 points behind Alonso
after the summer break, the
Vettel has the speed of
Lewis Hamilton and the
tactical awareness of
Fernando Alonso
maturity which came from winning
two world titles helped Vettel
approach the task of closing the gap,
he says.
“It helps to have experience. It
helps to have more races, but it does
not mean you will not make
mistakes,” he says.
“I made mistakes this year... but
the most important thing is that I do
not make the same mistake twice.”
Although Vettel won round four of
the world championship in Bahrain
in April and team mate Mark
Webber was victorious in Monaco a
month later, the German has largely
had to scrap for points and be
content with picking up the best
results possible, not always
challenging for wins.
“At times, it is difficult for us to
explain why sometimes a team is
extremely competitive while other
times it is lacking. We have been in
that position this year,” he says.
FINANCIAL TIMES THURSDAY NOVEMBER 1 2012
FT Formula One
The fightback involved Red Bull’s
under-pressure technical team
bringing in new bodywork, new
exhausts and new suspension parts
to the car in order to try to reclaim
what had been lost in the exhaust
blown diffuser rule change. At each
stage of its development the car
improved, but it was not until
September in Singapore that the
team could put the definitive version
on the track.
“It might sound too simple, but
sometimes you do not have the car
you want in terms of competitiveness
and how it feels. If you look at this
year, we were able to improve the car
and I felt happier with it,” he says.
A faster car has enabled Vettel to
use his talents fully, which combine
the best parts of each of his two
rivals: the speed of Lewis Hamilton
and the tactical intelligence of
Alonso.
Another strength is that, by and
large, he is able to take the emotion
out of high-pressure situations – a
trait he shares with Schumacher.
Where he once had a reputation for
criticising other drivers in the heat
of the moment, it is noticeable that
this has happened less as he has
grown older.
And when a championship needs
to be clinched, Vettel has the ability
to stay focused on the important
details: the start, the first corner, the
pit stops, keeping his lap times
consistently fast while looking after
the tyres.
“I don’t think too much when I’m
on the grid and waiting for the lights
to go off,” he says. “If you are in
front, you can afford not to take
risks, but I never feel we are in a
position to lean back.”
However much success he has had
with Red Bull, one rumour that has
refused to go away is that Vettel has
an understanding with Ferrari to
switch to the Italian team in the
next few years. Red Bull deny this,
labelling the story as a media
invention, but Vettel always seemed
more equivocal on the subject.
“I have not signed anything, nor
agreed anything with a handshake,”
he told reporters in July, before
going on to heap praise on Ferrari,
which he described as an “awesome”
team which “all 24 drivers on the
grid would say yes to, given the
chance, and that includes me”.
If Vettel can seal his third world
title in the final three races this
month, the battle for his signature
will only just have started. Winning habit: four straight Grand Prix victories have put Sebastian Vettel in pole position to win his third world title AP