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MONDAY 6 JULY 2020 WORLD BUSINESS NEWSPAPER EUROPE

The New Social Martin Wolf opens an FT series Revolt at Facebook

by warning that democracy will Ad boycotts alone will not tame
Contract BIG READ, PAGE 15 fail if we do not think as citizens Big Tech — RANA FOROOHAR, PAGE 17

Virus fund Briefing

Greece bridles i Indian start-up cut off from China funds
The $3bn Indian food delivery group Zomato has
at EU controls been cut off from Ant Financial, its biggest Chinese
investor, as a wave of anti-Beijing sentiment in New
Delhi hits business.— PAGE 6
Kyriakos Mitsotakis, Greece’s prime
minister, has said he will not accept i Britain set to squeeze Huawei out of 5G
strict conditions being placed on the use Premier Boris Johnson is this month expected to
of money from the EU’s coronavirus draw up plans to phase out the Chinese group from
recovery fund. networks, after warnings that US curbs have hurt its
In a sign of the fraught negotiations ability to supply the UK.— PAGE 3; JOHN SAWERS, PAGE 17
that lie ahead for the bloc’s leaders at a
summit this month, he told the Finan- i Studies say Mexico underplays death toll
cial Times that every southern member Independent reviews have shown there have been
state regarded such conditions as “polit- tens of thousands of deaths in excess of the official
ically unacceptable”. count, despite Andrés Manuel López Obrador’s
Oversight of the kind imposed on the insistence the pandemic has been tamed.— PAGE 4
country during the Greek debt crisis by
the “troika” of EU, European Central i Spain poised to extend furlough scheme
Bank and IMF officials is out of the ques- Labour minister Yolanda Díaz
tion, he added. “Greeks have matured a has told the FT that Madrid is
lot. We want to do our own reforms.” likely to extend the programme
Greece refuses to bow page 2 until the end of the year and
Wolfgang Münchau page 17 No conditions: Kyriakos Mitsotakis in an interview with the FT late last year — Savvas Kamaniolas/FT possibly into next for sectors
worst hit by the crisis.— PAGE 2

i Libya oil chief attacks foreign powers

Wirecard’s core Europe and US

National Oil Company boss Mustafa Sanalla has
said states backing renegade general Khalifa Haftar
are hindering talks to end a blockade, an apparent
reference to UAE and Saudi Arabia.— PAGE 4

i Fed stress tests see European loan losses

business was in the red for years The latest round of the central bank’s annual tests
have predicted that HSBC and Santander will have
the biggest loss rates of any big bank in the US
market in credit cards and consumer loans.— PAGE 6

i Landslide re-election for Tokyo governor

3 KPMG audit shows profits existed largely on paper 3 Ex-Asia units lossmaking since 2016 Yuriko Koike, the most powerful female elected
official in Japan, has been declared the winner in
the city of 14m people, keeping alive her faint hopes
Olaf Storbeck — Frankfurt also promised investors a fivefold two-thirds of transaction volumes. the company” and was misrepresented of a return to national politics as premier.— PAGE 3
increase in profits by 2025. In 2018, when Wirecard’s stock mar- to investors.
Wirecard’s core business in Europe and But such profits appear to have ket valuation topped €24bn and it rep­- The published version of the KPMG
the Americas has been lossmaking for existed largely on paper, according to laced Commerzbank in Germany’s pres- report, which did not include the appen- Datawatch
years, casting doubt on the economic data in the confidential appendix of a tigious Dax index, activities under the dix, stated that the outsourced activities
substance of the parts of the company special audit conducted by KPMG and company’s direct control yielded €74m accounted for “the lion’s share” of group
not directly affected by its accounting seen by the Financial Times. The report in operating losses, compared with The KPMG profits but did not disclose figures. Chapter 11 There have been
scandal. was commissioned by the company late losses of €3m a year earlier, numbers in special audit But the activities outside Asia have US bankruptcies (public and private 75 bankruptcy
The German payments group col- last year in response to questions over the appendix to the KPMG report show. was launched failed to generate a profit since 2016, companies with liabilities >$50m) filings among US
lapsed into insolvency last month after its accounting practices. This was masked by profits attributed last year. EY, when it made €20m, contributing just 100 companies with
liabilities of at
revealing that €1.9bn in cash in its Wirecard’s internal numbers reveal to outsourced activities in Asia, where the group’s 8 per cent to group earings before inter- 80 least $50m in
accounts probably did “not exist”. For that the operating performance of its Wirecard said it relied on third-party original auditor, est and tax. The poor operating per-
years it had portrayed itself as a highly core business — mainly payments business partners because it did not pos- reported that formance outside Asia highlights the 60 the past quarter,
matching the
profitable business. processing in Europe and issuing credit sess its own licences to operate. earnings almost challenges facing Wirecard’s adminis- 40 same period of
According to its EY-audited financial cards in Europe and North America — These outsourced activities are now at doubled from trator in finding buyers for the remain- 20 2009, which was
reports, between 2016 and 2018 Wire- was far worse than previously known. the centre of an accounting scandal that 2016 to 2018 ing business. A sale of Wirecard’s sub- the second-worst
card generated operating margins of The figures show that those activities has rocked German finance. Wirecard sidiaries needs to happen within weeks 0 quarter ever
around 22 per cent and almost doubled have also become increasingly lossmak- warned investors last month that this or they will lose any remaining value, 2008 10 12 14 16 18 20
annual earnings before interest and ing, despite accounting for half the com- part of the business may not have “actu- said people familiar with the matter. Source: Bloomberg
taxes to €439m. The company last year pany’s reported revenue and almost ally been conducted for the benefit of Wirecard declined to comment.

World Bank bins pandemic bonds after

first issue leaves poor nations waiting
Camilla Hodgson — London before marketing the new product in or set of criteria — including at least 2,500
around May 2020. But the World Bank deaths — were met. Some investors
The World Bank has shelved plans for a has told the Financial Times that there would then recoup a portion of their
second pandemic bond sale after the are now “no plans for a PEF 2.0”. investment, while the remainder went
first drew criticism for being too slow Clare Wenham, assistant professor in towards tackling the health crisis.
Trump faces darkening to pay out aid to poor nations suffering global health policy at the London The programme first drew fire when
polls in sunshine state from the coronavirus outbreak. School of Economics, said the bonds had the bonds’ criteria were not met after an
been “an awful scheme” that the World Ebola crisis broke out in 2018 in the
Analysis i PAGE 3 The supranational agency issued the Bank should “draw a line under”. She Democratic Republic of Congo.
bonds three years ago, in a $320m deal added: “We need to somehow engage After Covid-19 triggered the payout
intended to help developing countries with priv­ate money because public this year, the World Bank allocated
Austria €3.90 Malta €3.70 tackle a serious outbreak of infectious money isn’t enough or isn’t fast enough.” $195.8m — which included the bonds
Bahrain Din1.8 Morocco Dh45
Belgium €3.90 Netherlands €3.90 disease. In mid-April, weeks after the The World Bank launched its pan- and related swaps — to 64 eligible coun-
Bulgaria
Croatia
Lev7.50
Kn29
Norway
Oman
NKr40
OR1.60
virus had started spreading around the demic bond scheme following the 2014 tries. The highest available sum, of
Cyprus €3.70 Pakistan Rupee350 globe, the conditions to pay out nearly Ebola outbreak in west Africa, with the $15m, went to Nigeria and Pakistan.
Czech Rep Kc105 Poland Zl 20
Denmark DKr38 Portugal €3.70 $200m were finally met — though critics aim of finding a way to funnel private- Meanwhile, investors holding the
Egypt
Finland
E£45
€4.70
Qatar
Romania
QR15
Ron17
said this was too little, too late. sector money quickly to poor countries bonds — including Baillie Gifford,
France €3.90 Russia €5.00 A second iteration of the “pandemic faced with a large-scale cross-border Amundi and Stone Ridge Asset Manage-
Germany €3.90 Serbia NewD420
Gibraltar £2.90 Slovak Rep €3.70 emergency financing facility”, or PEF, outbreak. ment — had received interest payments
Greece
Hungary
€3.70
Ft1200
Slovenia
Spain
€3.70
€3.70
was due to be launched this year, after Investors were paid double-digit that totalled almost $100m by the end of
India Rup220 Sweden SKr39 the World Bank said in early 2019 that it interest rates, funded by donor nations February.
Italy €3.70 Switzerland SFr6.20
Latvia €6.99 Tunisia Din7.50 was making tweaks to the structure Japan, Australia and Germany, until a Poorest face catastrophic blow page 4
Lithuania €4.30 Turkey TL19
Luxembourg €3.90 UAE Dh20.00
North Macedonia Den220

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2 ★ FINANCIAL TIMES Monday 6 July 2020

INTERNATIONAL

Emergency aid Employment

Mitsotakis vows Greece will not bow to EU Spain signals

furlough
PM says his country has “Greeks have matured a lot,” he said.
“And we want to do our own reforms.”
grammes, Greece surprised many with
its handling of coronavirus. As of the
It is almost a year since Mr Mitsotakis
won power from the far-left, promising
according to the European Commission,
because of its dependence on tourism.
extension into
matured since debt crisis
and will set its own agenda
Sweden, Finland, Denmark and the
Netherlands are opposed to the Euro-
beginning of July, it had recorded 192
deaths from Covid-19 and 3,432 cases.
a return to business-friendly reforms to
entrench Greece’s recovery from the
Greece would only see a “fraction” of
the 33m visitors it received last year, Mr
2021 for worst
Roula Khalaf and Ben Hall
London
pean Commission’s plans for the recov-
ery fund and are pushing for so-called
“conditionality” to be applied to EU
“It was very obvious to me that at some
point we needed to go into full lockdown
debt crisis. Since then, the pandemic has
hammered its economy and sharply
increased its huge debt burden.
Mitsotakis said. But people would make
Greece their “top choice” once they
understood the preparations the gov-
hit sectors
money to ensure it is spent to improve He has also had to contend with the ernment had made, he said, including
Greece’s prime minister has said he will competitiveness. German chancellor
‘At some point we needed “aggressive behaviour” of Turkey, which randomised testing, diagnostic capacity Daniel Dombey — Madrid
not accept strict EU conditions on the Angela Merkel, who supports the recov- to go into full lockdown. enraged Athens with its assertion of sov- on even the smaller islands and a dou-
Spain is likely to extend its emergency
use of coronavirus emergency aid, in a ery fund, has said the money must be ereignty over swaths of the eastern Med- bling of intensive care beds.
sign of the difficult negotiations ahead used to “future proof” each economy.
And my decision was to do iterranean and by unleashing another Greece’s recovery from the debt crisis
employee furlough schemes until the
end of the year and possibly into 2021
for the bloc’s leaders on its proposed Mr Mitsotakis said the European it sooner rather than later’ migrant wave into Greece this year. was propelled by a surge in tourism and
for sectors worst hit by the coronavirus
€750bn recovery fund. Commission’s six-monthly review was Mr Mitsotakis conceded it was fortu- investment in hotels and resorts. The
crisis, the country’s labour minister
Kyriakos Mitsotakis told the FT that sufficient. “I don’t think any additional mode. And my political decision was to nate the virus erupted during the winter once-booming sector now looks like a
has signalled.
he would not countenance a return of strict conditionality is necessary,” he do it sooner rather than later.” when Greece receives few international liability. Did he have a plan to diversify
the strict and unpopular oversight said, adding that every southern EU After a decade of austerity, he could visitors, but said he would have put his the economy? “We have a very, very In an interview with the Financial
imposed on his country by the “troika” member state regarded it as “politically not allow a debilitated health system to country into the same lockdown had the aggressive reform agenda,” Mr Mitso- Times, Yolanda Díaz acknowledged the
of EU, European Central Bank and IMF unacceptable”. be overrun, he said, but was “pleasantly pandemic hit at the height of summer. takis said. It would focus on “the green difficulties facing the country’s tourism,
officials during the debt crisis “forcing Given its near-economic collapse five surprised” by a service his centre-right Despite its luck, Greece’s economy transition, on the digital transition” and aviation, maritime, leisure and culture
us to do reforms” even though “there years ago and deep cuts to public serv- New Democracy party had long wanted could shrink by 10 per cent this year, the encouraging investment partly through sectors, all of which have forecast they
was never really any domestic buy-in”. ices under successive austerity pro- to restructure. biggest contraction anywhere in the EU, a privatisation programme. are unlikely to resume business as nor-
mal this year.
“The government is going to be there
for the sectors that most need it — with-
out any room for doubt,” she said. “It
Stimulus measures. Unlocking incomes would not make sense to undertake this
gigantic, unprecedented effort in the

High saving rates pose dilemma for central banks Spanish economy [to preserve jobs] and
then just let things fall away.”
Ms Díaz, a member of the radical left-
ist Podemos bloc in Spain’s Socialist-
Podemos coalition, and one of the first
communists in the country’s govern-
Consumers’ pandemic cash ment since the Spanish civil war,
stash will help drive economic emphasised the point when asked if
such aid could continue into next year.
recovery or hold back growth She only recently negotiated a three-
month extension of the emergency
schemes, which had been due to expire
Chris Giles — London
Martin Arnold — Frankfurt on June 30.
Spain’s government would make a
Households around the world have been final decision about the next steps in
saving up since the pandemic hit the glo- September, in conjunction with busi-
bal economy, but their cash stash poses ness and unions, after analysing eco-
a dilemma for policymakers as they try nomic data over the summer, Ms Díaz
to gauge the amount of stimulus needed added.
to fuel a return to growth. Under the schemes, known as ERTEs,
It is not clear whether the money rep- the state pays about 70 per cent of the
resents pent-up consumer demand that salaries of furloughed staff. Some 2m
is itching to be spent as lockdowns are workers are currently covered. The
lifted, known as involuntary saving, or a emergency ERTEs put in place when the
safety net put aside by households to pandemic struck are a more generous
insure against uncertain times ahead, version of existing company-specific
referred to as precautionary saving. schemes.
If consumers rush back to the shops, Spain has been among the richer
extra government stimulus threatens to countries most badly affected by the
generate too much spending and infla- pandemic in human and economic
tion; but if they hoard their incomes, too terms. The Bank of Spain predicted the
little stimulus threatens a vicious circle economy could shrink by as much as 15
of weak expenditure, slower recovery per cent this year and the government
and higher unemployment. acknowledged the crisis could leave one
The two trends are not mutually in five people out of work.
exclusive — the likeliest outcome is a bit Ms Díaz said that during May the
of both — but the dilemma about which ERTE programmes had cost the state
will be more powerful is pitting some of €3.3bn in transfers and about €1.4bn in
the big beasts in central banking on foregone social security payments.
either side of an intellectual divide. Tourists return left with fewer opportunities to spend. Tim Congdon, an economist who The US But not every country can expect to Spain is more cash-strapped than
Christine Lagarde, president of the to Corfu last As a result, the eurozone household tracks money supply figures, said the enjoy a rebound in consumer spending. countries such as Germany and France,
European Central Bank, recently cited a week. Countries saving rate — defined as gross saving growth in deposits had been “unprece- personal “Because the economic prospects are and has been criticised by unions and
surge in household bank deposits as rea- that have divided by gross disposable income — dented in modern peacetime history”. savings rate darker in some countries, like Spain and businesses for providing less generous
son for caution on the speed of the eco- managed the rose to 16.9 per cent in the first three He warned that at some point, such Italy, so there will be higher levels of pre- crisis support programmes than its
nomic recovery, which she forecast pandemic well months of the year, up from 12.7 per moves would lead to “a significant surged from cautionary savings in these countries,” European peers. Under the most recent
would be “sequential and restrained”. will enjoy a cent in the previous quarter and the uptick in inflation”. 7.9% at the Ms Utermöhl said. Allianz forecasts prolongation of the emergency ERTEs,
But Andy Haldane, chief economist of greater rebound highest since records began in 1999, There is some evidence to suggest the insolvencies will rise 12 per cent in Ger- agreed late last month, employers will
the Bank of England, said last week in consumer according to Eurostat data. consumer will come roaring back as start of the many by the end of next year, and by 41 be exempt from fewer social security
involuntary saving caused by the lock- confidence, say In the UK, it rose to 8.6 per cent in the economies reopen. French consumer year to per cent in Spain and 27 per cent in Italy. payments than before.
down was of a scale sufficient to “poten- economists same period, from 5.4 per cent in the spending on goods surged 36.6 per cent Adam Slater, lead economist at Some critics said the European fur-
tially dwarf any voluntary rise in sav- Angelos Tzortzinis/AFP/
Getty Images
same quarter a year earlier. In the US, in May, while German retail spending more than Oxford Economics, said that across lough schemes risked creating “zombie
ings for precautionary purposes”. the personal savings rate surged from shot up a record 13.6 per cent, rising 32% in April advanced economies it was too early to jobs” that kept people on the payroll
High levels of saving is due in part to 7.9 per cent at the start of 2020 to more even above pre-pandemic levels. celebrate a V-shaped spending bounce even if they had no prospect of resuming
governments’ actions to protect the than 32 per cent in April, before reced- Katharina Utermöhl, economist at just because there were some initial work.
workforce from the sharp downturn. ing to 23.2 per cent in May, according to Allianz, said retail sales were likely to strong signs of life among consumers. But Ms Díaz said 1.5m people had left
Even though large numbers of house- the Bureau of Economic Analysis. keep rising in June and July as the bene- “Unemployment and precautionary the schemes and returned to their jobs
holds in advanced economies in the US, Bank deposits are also surging. The fits of lifting the lockdowns were felt and saving by firms and households will in recent weeks, bringing the total cov-
Europe and Asia have suffered falls in sharp rise in household bank deposits in as Germany’s temporary cut in value hold down spending,” he said. ered by ERTEs down from about 3.4m at
earnings, their incomes have been the eurozone suggests increased saving added tax encouraged more spending. Countries that have managed the its peak.
partly protected, either through welfare continued for much of the second quar- In South Korea, Miguel Chanco, sen- health crisis well will enjoy a greater “The percentage [of people covered
systems, such as in the US, or short-time ter. In the three months to May, euro- ior Asia economist at Pantheon Macr- rebound in consumer confidence and by ERTEs] is now almost half what it
working, mostly in Europe. zone households increased bank depos- oeconomics, said sales gains since April quicker reopening, said economists — was,” she said. “That indicates that little
As shops closed, and travel and tour- its by €71bn a month on average — more were “robust enough to bring the overall and that is what gives them the best by little the economy is resuming activ-
ism ground to a halt, households were than double the same period last year. level back up above its long-run trend”. chance of enjoying a V-shaped rebound. ity.”

Election
MAKE A SMART INVESTMENT
Subscribe to the FT today at FT.com/subscription Presidential candidates draw battle lines in Poland’s provinces
FRIDAY 31 MARCH 2017 WORLD BUSINESS NEWSPAPER UK £2.70 Channel Islands £3.00; Republic of Ireland €3.00
James Shotter and Agata Majos the road for the country. And with polls For most in the crowd, however, the way to stop Law and Justice doing
Skierniewice
Trump vs the Valley
Tech titans need to minimise
political risk — GILLIAN TETT, PAGE 13
A Five Star plan?
Italy’s populists are trying to woo
the poor — BIG READ, PAGE 11
Dear Don...
May’s first stab at the break-up
letter — ROBERT SHRIMSLEY, PAGE 12
predicting a neck-and-neck race, mid- main concern was the state of Polish deeper damage to Polish democracy.
HMRC warns Lloyd’s of Brussels Insurance market
to tap new talent pool with EU base
UK £3.80; Channel Islands £3.80; Republic of Ireland €3.80
Briefing
SATURDAY 1 APRIL / SUNDAY 2 APRIL 2017

Rafal Trzaskowski finished his speech sized towns such as the 47,000-strong democracy. Since Law and Justice came “The actions of the current govern-
customs risks THE END
i US bargain-hunters fuel Europe M&A
Europe has become the big target for cross-border

Skierniewice will be crucial battlefields. to power in 2015, it has introduced wel- ment are destroying the country.
dealmaking, as US companies ride a Trump-fuelled
equity market rally to hunt for bargains across the
HOW DRIVERLESS
OF THE
in the market square of Skierniewice, a
Atlantic.— PAGE 15; CHINA CURBS HIT DEALS, PAGE 17
TECHNOLOGY IS
being swamped i Report outlines longer NHS waiting times
A report on how the health service can survive CHANGING AN
ROAD
more austerity has said patients will wait longer for
non-urgent operations and for A&E treatment while AMERICAN WAY OF LIFE Censors and sensitivity
by Brexit surge
some surgical procedures will be scrapped.— PAGE 4

Mr Duda, backed by the conservative- fare policies that have improved the They’re just destroying it. The courts.
i Emerging nations in record debt sales Warning: this article may be

midsized town in central Poland, by

FT WEEKEND MAGAZINE
FEBRUARY 4 2017

Developing countries have sold record levels of

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

3 Confidence in IT plans ‘has collapsed’

Credit Suisse Art of persuasion Mystery deepens
i London tower plans break records
How To Spend It
nationalist Law and Justice, won the lives of many. But it has also under- Culture. The education system. Every-
A survey has revealed that a
3 Fivefold rise in declarations expected record 455 tall buildings are
planned or under construction over disputed painting of Jane Austen

accusing his presidential rival Andrzej

JAMES BLITZ — WHITEHALL EDITOR adjust its negotiation position with the in London. Work began on

engulfed in
EU, a Whitehall official said. “If running almost one tower a week
A computer system acquired to collect our own customs system is proving during 2016.— PAGE 4
duties and clear imports into the UK much harder than we anticipated, that
may not be able to handle the huge ought to have an impact on how we i Tillerson fails to ease Turkey tensions
surge in workload expected once Britain press for certain options in Brussels.” The US secretary of state has failed to reconcile

fresh tax probe

first round last week with 43.5 per cent mined democratic checks and balances, thing,” said Barbara Omiecinska, a pen-
leaves the EU, customs authorities have In a letter to Andrew Tyrie, chairman tensions after talks in Ankara with President Recep
admitted to MPs.
HM Revenue & Customs told a parlia-
of the Commons treasury select com-
mittee, HMRC said the timetable for
Tayyip Erdogan on issues including Syria and the
extradition of cleric Fethullah Gulen.— PAGE 9
Chic new lodgings

Duda of lacking the courage to stand up

mentary inquiry that the new system
needed urgent action to be ready by
delivering CDS was “challenging but
achievable”. But, it added, CDS was “a i Toshiba investors doubt revival plan
in Scotland
March 2019, when Brexit is due to be complex programme” that needed to be In a stormy three-hour meeting, investors accused MAGAZINE
completed, and the chair of the probe linked to dozens of other computer sys- managers ofhaving an entrenched secrecy culture
said confidence it would be operational tems to work properly. In November, 3 UK, France and Netherlands swoop
and cast doubt on a revival plan after Westinghouse
in time “has collapsed”. HMRC assigned a “green traffic light” to filed for Chapter 11 bankruptcy protection.— PAGE 16
3 Blow for bid to clean up Swiss image

of the national vote, fired by strong sup- threatened the independence of the sioner. “[In these elections] we are
Setting up a digital customs system CDS, indicating it would be delivered on
has been at the heart of Whitehall’s time. But last month, it wrote to the i HSBC woos transgender customers
Brexit planning because of the fivefold committee saying the programme had The bank has unveiled a range of gender-neutral it followed “a strategy offull client tax

to the ruling Law and Justice party.

RALPH ATKINS — ZURICH
increase in declarations expected at been relegated to “amber/red,” which DUNCAN
titles such asROBINSON — BRUSSELS
“Mx”, in addition to Mr, Mrs, Misscompliance”
or but was still trying to
British ports when the UK leaves the EU. means there are “major risks or issues Ms, in a move to embrace diversity and cater togather the information about the probes.

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

(Deposito Legal) M-32596-1995;

port from the socially conservative vot- judiciary and captured the public media. fighting for independence, democracy.
Theresa May announced in January that international trade once the UK leaves its image as a tax haven. and certain ofits employees”. The UK
Brexit would include departure from the EU . . . Internal ratings are designed The Swiss bank said yesterday it was tax authority added: “The international
both trading blocs. HMRC handles 60m
declarations a year but, once outside the
to make sure that each project gets the
focus and resource it requires for suc-
Terror attacks inwith
co-operating western Europe after
authorities
offices in London, Paris and Amsterdam
Recent reach
itsattacks
notably the message
2011
— of this investigation sends a clear
that there is no hiding place for
The lure of the exotic
customs union, the number is expected cessful delivery.” were contacted
Highlighted attack byOthers massacre bythose seeking to evade tax.”
local officials Robin Lane Fox on the flair
“concerning client tax matters”. Anders BreivikDutch in prosecutors, who initiated the
to hit 300m. HMRC’s letters to the select commit- of foreign flora — HOUSE & HOME

Bracken House, 1 Friday Street, London EC4M 9BT.

The revelations about the system,
called Customs Declaration Service, are
likely to throw a sharper spotlight on
tee, which will be published today, pro-
vide no explanation for the rating
change, but some MPs believe it was
Lloyd’s of London chose Brus-
sels over “five or six” other
insurers to follow. Most of the
business written in Brussels
EU, with Dublin and Luxem-
bourg thought to be more likely
AFP
parts in Germany wereBrussels
while Australia’s revenue department
Norway
said it was investigating a Swiss
Publishing Director, Roula Khalaf;
Norway, the
Dutch authorities said their counter- action, said they seized jewellery, paint-
attacks in Paris
also involved,
and Nice, and
ings and gold ingots as part of their
Brussels suicide
Nice bank.
the while French officials said their
probe;
investigation had revealed “several

“All he does is wait for them to send him ers who dominate Poland’s countryside The changes have set Warsaw, once Unfortunately, that’s how it is.”
whether Whitehall can implement a caused by Mrs May’s unexpected deci- cities in its decision to set up an will be reinsured back to the homes for the industry. But Paris bombings — have
host of regulatory regimes — in areas sion to leave the EU customs union. EU base to help deal with the syndicates at its City of London Mr Nelson said the city won on The inquiries threaten to undermine thousand” bank accounts opened in
bucked the trend
efforts by the country’s banking sector Switzerland and not declared to French
ranging from customs and immigration
to agriculture and fisheries — by the
time Britain leaves the EU.
Problems with CDS and other projects
essential to Brexit could force London to
Timetable & Great Repeal Bill page 2
Scheme to import EU laws page 3
Editorial Comment & Notebook page 12
Philip Stephens & Chris Giles page 13
JPMorgan eye options page 18
expected loss of passporting
rights after Brexit.
John Nelson, chairman of the
centuries-old insurance mar-
ket, said he expected other
headquarters, pictured above.
The Belgian capital had not
been seen as the first choice for
London’s specialist insurance
groups after the UK leaves the
its transport links, talent pool
and “extremely good regula-
tory reputation”.
Lex page 14
Insurers set to follow page 18
to overhaul business models and ensure
customers meet international tax
requirements following a US-led clamp- Publishing Company, The Financial Times Limited,
of generally low

western Europe
tax authorities.
fatalities from
The Swiss attorney-general’s office
Sources: Jane’s Terrorism and Insurgency Centre terror incidents in
said it was “astonished at the way this
down on evaders, which resulted in operation has been organised with the
billions of dollars in fines. deliberate exclusion of Switzerland”. It

registered office as above. Local Representative office;

The probes risk sparking an interna- demanded a written explanation from

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City watchdog sends a clear message as

laws for him to sign. Is that courage?” Mr and provincial towns. seen as the poster child of the EU’s 2004 Concerns about leaving Law and Jus-
general’s office expressed “astonish- In 2014, Credit Suisse pleaded guilty
ment” that it had been left out of the in the US to an “extensive and wide-
actions co-ordinated by Eurojust, the ranging conspiracy” to help clients THE RISE
Escape OF
the taper ECO-GLAM
trap
EU’s judicial liaison body. evade tax. It agreed to fines of $2.6bn.

banker loses job over WhatsApp boast How high earners can evade

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Credit Suisse, whose shares fell 1.2 per

subject ofinvestigations in the Nether-

lands, France and the UK. The bank said in Paris C/ Infanta Maria Teresa 4, bajo 2, 28016, Madrid. ISSN
Additional reporting by Laura Noonan in
cent yesterday, identified itself as the Dublin, Caroline Binham and Vanessa
Houlder in London, and Michael Stothard
Austen’s descendants insist the Rice portrait depicts her as a girl — see magazine Bridgeman Art Library
a pension headache — FT MONEY

Trzaskowski said of the incumbent. Mr Trzaskowski, mayor of Warsaw eastern expansion, at loggerheads with tice unchecked may help Mr Trza-
LAURA NOONAN — DUBLIN Berrys after discussions with regulators. media at work, but banks are unable to
JENNIFER THOMPSON — LONDON

Contact: +44 207 775 6000, [email protected]

Shutdown risk as border
A boastful WhatsApp message has cost
a London investment banker his job
and a £37,000 fine in the first case of
Christopher Niehaus, a former Jeffer-
ies banker, passed confidential client
information to a “personal acquaint-
ance and a friend” using WhatsApp,
according to the FCA. The regulator said
ban people from installing apps on their
private phones.
Andrew Bodnar, a barrister at Matrix
Chambers, said the case set “a precedent
in that it shows the FCA sees these mes-
1135-8262.
Brussels takes tough stance on Brexit
with Spain handed veto over Gibraltar
regulators cracking down on commu- 390_Cover_PRESS.indd 1 19/01/2017 13:57

wall bid goes over the top nications over Facebook’s popular Mr Niehaus had turned over his device saging apps as the same as everything

Manage your personal account: mma.ft.com

Congressional Republicans seeking to
chat app. to his employer voluntarily.
The FCA said Mr Niehaus had shared
else”.
Information shared by Mr Niehaus
UAE: Masar Printing & Publishing, P.O. Box 485100,
“Today we need a president who is and a member of Poland’s main opposi- Brussels. Many liberal voters believe skowski pick up voters who backed
avert a US government shutdown after The fine by the Financial Conduct confidential information on the messag- included the identity and details of a
April 28 have resisted Donald Trump’s Authority highlights the increasing ing system “on a number of occasions” client and information about a rival of ALEX BARKER — BRUSSELS ambitious trade and airline access deals. mise. If Britain wants to prolong its
attempt to tack funds to pay for a wall problem new media pose for companies last year to “impress” people. Jefferies. In one instance the banker GEORGE PARKER — LONDON Gibraltar yesterday hit back at the status within the single market after
on the US-Mexico border on to that need to monitor and archive their Several banks have banned the use of boasted how he might be able to pay off STEFAN WAGSTYL — BERLIN clause, saying the territory had “shame- Brexit, the guidelines state it would

Advertising
stopgap spending plans. They fear
that his planned $33bn increase in
defence and border spending could
force a federal shutdown for the first
time since 2013, as Democrats refuse
staff’s communication.
Several large investment banks have
banned employees from sending client
information over messaging services
including WhatsApp, which uses an
new media from work-issued devices,
but the situation has become trickier as
banks move towards a “bring your own
device” policy. Goldman Sachs has
clamped down on its staff’s phone bills
his mortgage if a deal was successful.
Mr Niehaus was suspended from Jef-
feries and resigned before the comple-
tion of a disciplinary process.
Jefferies declined to comment while
Living wage rise to pile
pressure on care services
Dubai. Editor in Chief: Roula Khalaf.
The EU yesterday took a tough opening
stance in Brexit negotiations, rejecting
Britain’s plea for early trade talks and
explicitly giving Spain a veto over any
arrangements that apply to Gibraltar.
fully been singled out for unfavourable
treatment by the council at the behest of
Spain”. Madrid defended the draft
clause, pointing out that it only reflected
“the traditional Spanish position”.
require “existing regulatory, budgetary,
supervisory and enforcement instru-
ments and structures to apply”.
Mr Tusk wants talks on future trade
to begin only once “sufficient progress”

Qatar: Dar Al Sharq, PO Box 3488, Doha-Qatar. Tel: +97 strong, who will work with the govern- tion group, the centre-right Civic Coali- that a win for Mr Trzaskowski, which other opposition candidates last week,
to accept the proposals. encryption system that cannot be as iPhone-loving staff spurn their work- Facebook did not respond to a request Senior EU diplomats noted that has been made on Britain’s exit bill and

Tel: +44 20 7873 4000 [email protected],

US budget Q&A and
Trump attack over health bill i PAGE 8
accessed without permission from the
user. Deutsche Bank last year banned
WhatsApp from work-issued Black-
issued BlackBerrys.
Bankers at two institutions said staff
are typically trained in how to use new
for comment.
Additional reporting by Chloe Cornish
Lombard page 20
About 2.3m people will benefit from
today’s increase in the national living
wage to £7.50 per hour. But the rise
will pile pressure on English councils,
which will have to pay care workers a
European Council president Donald
Tusk’s first draft of the guidelines,
which are an important milestone on
the road to Brexit, sought to damp Brit-
ain’s expectations by setting out a
Mr Tusk’s text left room for negotiators
to work with in coming months. Prime
minister Theresa May’s allies insisted
that the EU negotiating stance was
largely “constructive”, with one saying it
citizen rights, which Whitehall officials
believe means simultaneous talks are
possible if certain conditions are met.
Boris Johnson, the foreign secretary,
reassured European colleagues at a

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lot more. Some 43 per cent of care
staff — amounting to 341,000 people
aged 25 and over — earn less than the
44557825
“phased approach” to the divorce proc-
ess that prioritises progress on with-
drawal terms.
was “within the parameters of what we
were expecting, perhaps more on the
upside”.
Nato summit in Brussels that Mrs May
had not intended to “threaten” the EU
when she linked security co-operation

ment when it wants to help citizens. But tion, came second with 30.5 per cent. He would give the opposition control of the such as independent Szymon Holownia,
www.ft.com/subscribenow new living wage and the increase is The decision to add the clause giving British officials admitted that the EU’s after Brexit with a trade deal.
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Analysis i PAGE 4 300-year territorial dispute between tion deal could be problematic. Man in the News: David Davis page 11

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Boetie, 75008 Paris, Tel. +33 (0)1 5376 8256; Fax: +33 (01)
who will be tough when the government scored best among liberal voters in big presidency’s veto powers, is the only who won 13.9 per cent, and the leftwing
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297.99 297.73 0.09 Gold $
Mar 30
50.22
52.98
1248.80
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49.51
52.54
1251.10
Fed Funds Eff
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Executive appointments
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7369.52 -0.63 € index
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88.767 89.046 $ index
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wants to make your lives harder.” cities. But with just 24.8 per cent of vot- Robert Biedron, who won 2.2 per cent.
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24111.59 24301.09 -0.78 Oil Brent $
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53.35
1244.85
50.35
53.13
1248.80
0.22 Euro Libor 3m
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INTERNATIONAL

Trump warned of ‘grim’ poll

Telecoms

UK set to phase Huawei out of

5G following security inquiry
prospects in must-win Florida George Parker, Helen Warrell and
Nic Fildes — London
new equipment, there was no need for
UK network operators to immediately
Prime minister Boris Johnson is this rip out and replace existing Huawei kit.
President trails in swing state, with virus threatening to hit his chances further month expected to draw up plans to
phase out Huawei from the UK’s 5G
The UK’s National Cyber Security
Centre wrote last month to the country’s
phone networks, after warnings that telecoms operators to stress the need for
US sanctions have undermined the Chi- sufficient stockpiles to keep their net-
Lauren Fedor — Washington
nese telecoms equipment maker’s abil- works running in light of the new US
ity to supply the British market. sanctions and the emergency review.
Republicans are warning the outlook is John Sawers, former head of the MI6
“grim” for Donald Trump in Florida, a An official security inquiry has raised security service, said a change in UK
battleground state that is seen as pivotal “very, very serious” questions about policy was inevitable. Writing in the
for the president’s re-election prospects whether Huawei can continue with its Financial Times, he said: “The Trump
in November. limited role as a supplier of 5G networks administration’s motives for trying to
With four months to go until election after the US announced sanctions in destroy Huawei can be debated. “But
day, the president’s poll numbers have May, according to government officials. the latest US sanctions . . . mean that
dropped sharply across the country, The sanctions were aimed at cutting reliable non-Chinese suppliers to Hua-
with many disapproving of his handling off the company’s access to semiconduc- wei can no longer work with the com-
of both the coronavirus pandemic and tors made with American equipment, pany. UK intelligence services can
widespread civil unrest following the raising fears in London that Huawei therefore no longer provide the needed
killing of George Floyd in May. Most would be forced to use alternative tech- assurances that Chinese-made equip-
national polls show Mr Trump trailing nology with new security risks. ment is still safe to use in the UK’s
Joe Biden, the presumptive Democratic Mr Johnson last week said the UK was telecoms network.”
nominee, by double digits. concerned about security around “hos- Huawei said: “Huawei is the most
In Florida, the margins are closer. tile state vendors” while Oliver Dowden, scrutinised vendor in the world and we
According to the Real Clear Politics aver- culture secretary, said US sanctions firmly believe our unrivalled transpar-
age, Mr Biden, the former vice-presi- were “likely” to have an impact on ency in the UK means we can continue
dent, leads Mr Trump by 5 points. Huawei’s viability as a supplier. to be trusted to play a part in Britain’s
Members of the president’s own party One Whitehall official said yesterday gigabit upgrade.”
are cautioning that a recent spike in that the impact of the US export con- Downing Street declined to comment,
coronavirus cases, as well as the threat trols was “unlike anything else” they but government officials confirmed pri-
of a prolonged shutdown, could hurt had encountered during previous vately that policy was set to change
him at the ballot box. Huawei security assessments. because of the new security advice com-
“He is in a much weaker political posi- However, the official stressed that ing from the NCSC.
tion than he was in at the beginning of since the sanctions would only affect See Opinion
the crisis,” said Carlos Curbelo, a former
Republican congressman from south
Florida who lost his seat in 2018 to Dem-
ocrat Debbie Mucarsel-Powell. Japan
“I think there are a lot of twists and
turns left, but today, things look grim
for the president.”
Ford O’Connell, a Republican strate-
Koike wins landslide second
gist from Naples, Florida, who is close to
the Trump campaign, said the state’s
term as governor of Tokyo
“trend lines” were “not currently going
in [Trump’s] favour”. He said: “Obvi-
ously the triple whammy of the virus, Robin Harding — Tokyo The following year, she set up the
the pandemic-induced weak economy Party of Hope to contest national elec-
The high-profile governor of Tokyo has
and the social unrest have taken a toll on tions, but despite an initial surge that
been re-elected to a second term in a
President Trump’s poll numbers.” saw it absorb the opposition, her party
landslide victory that will enhance her
Florida avoided a full-blown crisis fell to a heavy defeat against Mr Abe.
influence on national politics.
when coronavirus first started spread- The governor, a television newsreader
ing. But the state, which was one of the Yuriko Koike, the most powerful female before she entered politics, is known for
first to reopen non-essential businesses elected official in Japan, was declared her ability to dominate the media by
has recently seen its number of Covid-19 the winner in the city of 14 million peo- seizing on issues such as the cost of the
cases jump. It reported a record 11,458 ple as soon as voting ended at 8pm, Tokyo Olympics and the relocation of
new infections on Saturday alone. based on exit polls showing her with the capital’s famous Tsukiji fish market.
Ron DeSantis, the state’s Republican Supporters of “The reason why it is the most impor- ‘The reason remained limited to mostly younger almost 60 per cent of the vote.
governor, reversed reopening plans in Donald Trump tant swing state is because if Trump people, who were likely to make a full The sweeping victory for Ms Koike
many parts of the state and closed mark the loses it, it’s over,” Mr O’Connell said. “If why it is the recovery. reaffirms her independent power base Yuriko Koike: has
seized on issues
beaches for the July 4 weekend in an president’s 75th Trump wins it, he is fighting.” most Susan MacManus, a retired political in Japan’s capital and keeps alive her such as Olympic
effort to slow the virus spread. Mike birthday last The Republican National Committee science professor from the University of faint hopes of a return to national poli- spending and the
Pence met Mr DeSantis on Thursday to month in Palm decided last month to move its conven- important South Florida, called the state a tics as prime minister. relocation of the
discuss the scale of the crisis. Beach, Florida tion to Jacksonville, Florida, after dis- swing state “toss-up”. She said historically surveys “I want to manage an effective Tsukiji fish market
With more than 21m residents, Flor- Johnny Louis/Getty Images
putes with local authorities in the origi- there had been inaccurate as many response to Covid-19,” said Ms Koike at a
ida is the US’s biggest swing state by nal location of Charlotte, North Caro- is because Trump supporters gave “socially desira- press conference. “I’ll do my best with Critics accuse her of opportunism and
population. In 2016, Mr Trump won the lina, over virus-related precautions. if Trump ble answers” instead of their actual this second term.” populism. Ms Koike ran on a vague plat-
state’s 29 electoral college votes by a Mr Trump is reportedly holding a fun- views, or would not talk to pollsters at all. According to the exit poll, the public form of reform to the city government.
1.2-point margin over Hillary Clinton. draiser in person in Hillsboro Beach this loses it, it’s Armando Ibarra, president of the gave Ms Koike high marks for her During a second term, she will over-
Florida is arguably the most politi- week. Guests will be tested for Covid-19 over. If Miami Young Republicans and a sup- handling of the coronavirus outbreak in see the postponed Olympics, assuming
cally divided state — most recent before attending. Tickets are $580,600 porter of Mr Trump’s, agreed: “There the city. Throughout the crisis, she has they go ahead in 2021. She will remain in
statewide elections have been decided per couple, according to NBC News. Trump are strong public disincentives for peo- pushed for more aggressive action than position to pounce if Mr Abe loses popu-
by a margin of less than a percentage By contrast, Mr Biden has had “vir- wins it, he ple to share openly how they feel. It is a Prime Minister Shinzo Abe’s national larity — although most observers think
point. It is among the most racially and tual” fundraising events since the start very polarised environment.” government, which has sought to keep a national comeback will be difficult.
ethnically diverse, with large numbers of the pandemic and has recently begun is fighting’ Many Trump supporters in the state the economy going. According to the exit poll, Ms Koike’s
of black and Latino voters, notably holding small, in-person campaign said they were confident the president Ms Koike is a longtime rival to Mr closest rival — the lawyer Kenji Utsu-
exiles from Cuba and Venezuela who are events. Mr Biden and the Democratic would cobble together a coalition of Abe. A former environment minister, nomiya — polled around 15 per cent. He
drawn to the Republican party’s anti-so- National Committee raised more than right-leaning pensioners, who are more she defected from his Liberal Demo- was backed by several leftwing parties.
cialism message. And while it is known Mr Trump and the Republican National inclined to endorse his “law and order” cratic party in 2016 to stand as an inde- With Mr Abe in his eighth year as pre-
for having the largest share of retirees in Committee in both May and June. rhetoric in response to Black Lives Mat- pendent candidate for the Tokyo gover- mier, the race to succeed him is picking
the country, it is also home to big groups Non-partisan analysts warned the ter protests, and Latinos who are norship, winning a dramatic victory up pace. Ms Koike’s support is likely to
of young voters. polls in Florida were often unreliable, buoyed by his tough stance on Cuba and against the established party machines. be sought by LDP leadership contenders.
Perhaps most importantly for Mr and the president still had time to shore Venezuela. Brad Coker, a veteran non-
Trump, the victor in Florida has gone on up his base in the state that he calls partisan Florida pollster, said: “There is
to win the White House in 13 out of the home, especially if the number of Cov- certainly a minefield that Trump has to
past 14 presidential contests. id-19 cases subsided and the outbreak navigate. But the guy has nine lives.” South Asia

Asia. Political asylum

India faces ‘major challenge’ to
launch recovery, says Moody’s
Taiwan eyes exodus from Hong Kong with disquiet
Stephanie Findlay and Benjamin New Delhi and the financial centre of
Parkin — New Delhi
Mumbai have been particularly hard
base for Hong Kong’s fight against haven,” said Ketty Chen, vice-president before. Now Hong Kongers are those India will struggle to launch an eco- hit, with hospitals overwhelmed.
Taipei opens office to assist Beijing would place the island in even of the Taiwan Foundation for Democ- who are in exile,” he said. Taipei has nomic recovery unless New Delhi can “The virus will dictate the pace of that
exiles fleeing security law but greater danger. The People’s Republic of racy. Ms Chen said that TFD’s annual approved applications for residency flatten the coronavirus infection curve, recovery,” said Mr McKinnell. “If I’m
China claims Taiwan as its territory and survey, due to be released this month, permits like his on a case-by-case basis. the chairman of Moody’s has warned. correct and economic activity is a func-
fears move will enrage Beijing threatens to invade if Taipei rejects showed a jump in the public’s apprecia- Mr Lam lived from one extension of tion of control of the virus, India has a
unification indefinitely. tion of Taiwan’s democracy. “I am his three-month visa to the next for Henry McKinnell, who previously major challenge.”
Kathrin Hille — Taipei In the course of the stand-off between convinced that the events in Hong Kong almost a year before receiving residency served as chief executive of pharmaceu- Moody’s expects India’s economy,
Nicolle Liu — Hong Kong pro-democracy protesters and authori- are at play here,” she said. rights through an investment visa by tical company Pfizer and has been a fre- which was set to record its lowest level of
ties, growing numbers of Hong Kongers While President Tsai Ing-wen has reopening his bookshop. Taiwan’s new quent visitor to India since the 1970s, growth in a decade even before corona-
It was quiet at Causeway Bay Books, a have already sought refuge in Taiwan. declared Taiwan’s support for Hong office is aimed at streamlining proce- said the surge in Covid-19 cases meant virus struck, to contract 3.1 per cent in
small room on the 10th floor of a nonde- A survey conducted by the Chinese dures as more Hong Kongers arrive. that reviving Asia’s third-biggest econ- 2020.
script office building in Taipei, on Tues- University of Hong Kong in May found The Chinese government’s Taiwan omy would remain a “major challenge”. In June, it downgraded India to Baa3,
day morning. But owner Lam Wing-kee that 35.5 per cent of Hong Kongers con- President Tsai Ing- Affairs Office has decried Taipei’s “The only tool we have right now [to the lowest grade investment rating. S&P
wen has resisted
expects that to change soon. sidering emigration would like to move calls for a refugee pledge of assistance for Hong Kongers in fight coronavirus] is social distancing and Fitch also rate India one notch
Mr Lam, who was kidnapped and to Taiwan — making it the favourite or political asylum exile as a “separatist plot” based on a and that’s exceptionally hard to do in above junk, and the latter last month
then released by Chinese agents for sell- destination for would-be exiles. law to take in much “confluence of ‘Taiwan independence’ India,” said Mr McKinnell. “Hopefully lowered its outlook for the country to
ing politically sensitive books in Hong According to Taiwan government sta- larger numbers and ‘Hong Kong independence’”. we’ll have a vaccine, but I think the negative.
Kong, fled to Taiwan when the territory tistics, 5,858 people from Hong Kong But Taiwanese experts argue that the vaccine is going to take longer than peo- The rating agencies said that the pan-
proposed an extradition bill. Now that became Taiwan residents last year, a Kong’s democracy activists, she resisted notion of a joint front by Hong Kong and ple understand.” demic had exacerbated the challenges
China has imposed a national security 41 per cent jump from 2018. Between calls for a refugee or political asylum law Taiwan to challenge Beijing is unrealis- India has the world’s fourth highest India was facing and highlighted the
law on Hong Kong, he expects many of January and May this year, applications to allow Taiwan to take in much larger tic. “The idea that Taiwan could become number of confirmed cases, behind the deep stress in the country’s financial
his compatriots to follow him. for residency permits from Hong Kong numbers. Instead, to handle the grow- a platform for a Hong Kong political US, Brazil and Russia, and has been sector, which risked weighing down on
“It is game over for Hong Kong,” he citizens more than doubled compared ing stream of exiles from Hong Kong, opposition in exile is far-fetched,” said reporting a daily rise of more than growth in the longer term.
said. “Many more Hong Kong people with the same period last year, despite the Taiwanese government opened a Chang Wu-yueh, a professor at Tam- 18,000 new cases for the past five days. A high burden of non-performing
will come here.” Together with other Taiwan closing its borders in March due special office on July 1 to assist Hong kang University in Taipei. He said de The total number of confirmed cases loans had strained asset quality at finan-
Hong Kong dissidents abroad, he is to the pandemic. Kongers seeking to move to Taiwan. facto independent Taiwan had little in in India as of last night was 673,165, cial groups, leading to a series of col-
setting up Haven Assistance, a network Government officials expect the num- Victor, 21, who said he had been in the common with Hong Kong, a territory according to Johns Hopkins University. lapses at lenders. The ensuing credit
for helping Hong Kongers build new bers to rise further after Taipei re- “very first of the line” of the Hong Kong under Chinese control. Prime Minister Narendra Modi’s crunch has made it difficult for many
lives in exile. opened visa applications this week. protests, fled to Taiwan in July last year Prof Chang added that affluent Hong strategy has swung from a strict lock- Indian companies to raise funds.
While Taiwanese sympathise with Hong Kong’s plight has resonated because he feared police would storm Kongers were unlikely to settle in Tai- down to a swift reopening as the govern- Mr Modi in May announced a stimu-
Hong Kong’s democracy movement, the strongly with young people in Taiwan. his home, and said he faced 10 years in wan because salaries were lower and tax ment struggles to revive growth. But lus package equivalent to $266bn, or 10
government is treading carefully. It is “They [young Taiwanese] certainly prison if he returned. higher. “What we will see are probably a Indians are wary of returning to work per cent of gross domestic product,
mindful that promoting Taiwan as a hope that Taiwan can become a safe “Hong Kong was the place for exile lot more young people and students.” while the disease continues to spread. aimed at reviving the economy.
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4 ★ FINANCIAL TIMES Monday 6 July 2020

INTERNATIONAL

Covid-19 State energy group chief

Doubts cast over Mexico’s death figures Foreign

meddling
Independent studies claim 30,366 deaths among its 129m popula-
tion. But the true picture may be far
ing numbers, they are hiding them to
conceal the seriousness of the situa-
low level of testing, 67 per cent of tests
come back positive — an indication that
total deaths in Mexico City from March
to May were triple the usual level,
blamed for
tens of thousands of cases
have been missed
worse.
One study by independent research-
tion,” he said.
More than half the world’s average
many more cases are being missed.
Hugo López-Gatell, the health under-
according to an official but as yet
unpublished study. The Financial
holding up
Jude Webber — Mexico City
John Burn-Murdoch — London
ers Mario Romero and Laurianne
Despeghel shows at least 3.5 times more
deaths in Mexico City than the official
daily deaths from the virus are in Latin
America, making it one of the global
centres for Covid-19. Brazil has the
secretary and coronavirus tsar, said
mass testing would be a waste of time
and money, and the World Health
Times’s requests for an interview have
not been granted.
Until that study is published, or offi-
Libya oil talks
data, an undercount of 22,705 deaths in world’s highest official number of daily Organisation’s appeal to “test, test, test” cial mortality data is released next year,
Mexico has been grossly underestimat- the capital alone. deaths, but with an average of 4.7 new had been understood in a “deformed, the closest estimates available come Andrew England and
David Sheppard — London
ing its Covid-19 death toll, according to a In another, Raúl Rojas, a Mexican pro- deaths per 1m people in the last week, erroneous and distorted” way. from Ms Romero, a software developer
number of independent studies, casting fessor of artificial intelligence at Berlin Mexico and Brazil are neck and neck in But without robust testing and track- and data analyst, and Ms Despeghel, a The head of Libya’s state oil company
doubt on president Andrés Manuel University, calculated that Mexico could proportion to population. ing, experts fear Mexico will struggle to consultant in economics. has blamed foreign powers backing
López Obrador’s insistence that the pan- have as many as 6m cases and nearly Mexico is only counting cases and tame any new outbreaks as Latin Amer- Mr López Obrador, who refuses to renegade general Khalifa Haftar for
demic has been tamed. 78,000 deaths — almost three times the deaths that have been confirmed by a ica’s second-biggest economy reopens. wear a face mask, insists Mexico is past hindering talks aimed at ending a six-
As of yesterday, Mexico has officially official count. laboratory — and only 610,495 people Dr López-Gatell acknowledged in an the worst — even as the number of cases month oil blockade and allowing the
reported 262,165 infections and “I find it incredible that instead of giv- have been tested. In part because of the interview with the Washington Post that keeps rising. north African state to resume crude
exports.
Mustafa Sanalla, chairman of the

Virus World’s poorest threatened with catastrophic blow

National Oil Company, told the Finan-
cial Times that “some regional countries
are complicating the negotiations while
enjoying the absence of Libyan oil from
the market”.
Mr Sanalla, who is spearheading
FT reporters an initiative to lift the embargo
imposed by forces loyal to Gen Haftar in
The coronavirus pandemic is undoing January, declined to name the countries.
decades of progress in poverty reduc- But he appeared to be referring to
tion as millions of people’s livelihoods the United Arab Emirates and Saudi
are threatened in the poorest countries. Arabia, both supporters of the general.
Since 1990, more than 1bn people “It is very clear who is controlling
around the world have escaped extreme Libya now. It is from outside and this
poverty, according to the World Bank, decision about oil is about who is con-
which defines it as living below $1.90 trolling [the country], not the Libyan
per person per day. side,” Mr Sanalla said.
But up to 100m people could become The embargo has caused Libya’s
unable to fulfil their basic needs this crude output to collapse from about
year as they fall between the cracks of 1.2m barrels per day to fewer than
inadequate welfare systems, the World
Bank forecasts. It warns that acute hun-
ger could double this year, affecting
‘It is very clear who is
260m people. controlling Libya now.
Some 73 of the poorest countries that
borrow from the bank on sub-market
It is from outside’
terms — generally regarded as the poor- Mustafa Sanalla
est and most economically vulnerable
nations — can pause debt repayments to 100,000 bpd at a time when Opec mem-
official creditors for the rest of this year bers, led by Saudi Arabia, and Russia —
under a deal agreed by the G20 group of another backer of Gen Haftar — have
leading nations in April, giving them slashed production to stabilise plunging
some financial breathing space. Two Ghanian oil prices.
Many workers in those countries do women at a Even if the initiative to resume pro-
not have the same headroom. People market in Accra. duction succeeds, Mr Sanalla said it
who have worked hard to build busi- The country has would take months and hundreds of
nesses and improve their living stand- recorded only millions of dollars for Libya, an Opec
ards face a potentially catastrophic loss 66 deaths member, to get back to full production
Francis Kokoroko/Reuters
of livelihood. because of the damage done to
facilities. “We have a disaster — techni-
Edil Mendez, Honduras ‘There’s a Deborah Dofernyo, Ghana Sherzod Dzhalilov, Tajikistan Asmeret Andebirhan, Ethio cal problems everywhere, the collapse
Entrepreneur Housekeeper, receptionist and Migrant construction worker Psychiatrist of oil tanks. Yesterday we had a big leak
lot of risk of saleswoman in an offshore exploration line,” he said.
Mr Mendez moved to the Honduran being hard- Mr Dzhalilov left his village in northern Even before the pandemic, running a The country’s oil facilities have long
holiday island of Roatán with his family Ms Dofernyo had only been working at Tajikistan aged 21 for Russia, where he private psychiatry practice in the Ethio- been vulnerable to attack and used as
when he was four, from the poor north up again. I an Accra guesthouse for six months hoped to earn enough money to support pian capital of Addis Ababa was a chal- pawns, as rival factions have divided
central department of Yoro. At 28, the could lose when the first coronavirus case his family back home. lenge. Many could not afford the serv- Libya into fiefdoms. The embargo has
former firefighter is now a successful appeared in Ghana. But when Moscow launched one of ices of Dr Asmeret, a 34-year-old psy- cost the country more than $6.4bn in
entrepreneur, running a small hospital years of Business had already begun to slow as the world’s strictest lockdowns in late The chiatrist, and insurance does not cover lost revenue, according to the NOC.
for tourists, plus land and air ambu- work in a countries closed borders and Ghanaians March, 32-year-old Mr Dzhalilov had to mental health treatment outside gov- Efforts to resume production come
lances. He earns enough to support his started travelling less. A week later stop sending money back home, and lockdown ernment hospitals. during a period of relative calm after
four children, his four siblings and his matter of Accra was put under partial lockdown began to burn through his savings to ‘was the Coronavirus has only made things Gen Haftar, who controls eastern Libya
mother. But Covid-19 has wiped out the months’ and the guesthouse shut. The 27-year- support his wife and daughter in their harder. Income at her clinic, which from his headquarters in Benghazi, suf-
tourist trade and it could ruin him. old was luckier than most of Ghana’s small suburban flat. right thing employs 18, has halved. “We are going to fered a string of defeats by forces loyal to
“I’m giving it until November. If Edil Mendez, informal workers — her employer con- “I’m not sure what to do about this,” to do try to maintain [the] business but it’s a the UN-recognised government in
things don’t get better by then, I’ll have below tinued to pay her 100-cedi ($17.27) he said. “I had a bit saved up, but it’s all challenge. The impact is going to be Tripoli, which have been boosted this
to make some difficult decisions,” said weekly salary. “[That means] I can pay gone now. Lots of businesses are closing because huge, including on mental health.” year by increased support from Turkey.
Mr Mendez, referring to the peak holi- rent,” she said. and we’re not getting any state support.” once there Many patients have stopped coming The conflict has morphed into a proxy
day season in the popular destination But Ms Dofernyo supports her mother Mr Dzhalilov — who asked the Finan- because they fear catching the virus, war awash with foreign mercenaries,
for US, Canadian and European winter and grandmother, who are both infirm, cial Times not to use his real name as he is light, leading some to relapse. Meanwhile, since Gen Haftar launched an offensive
sun-seekers. “There’s a lot of risk of as well as five younger cousins. She had was concerned it could attract the atten- there is social distancing has made it more diffi- on the capital last year.
being hard-up again, and that’s very been saving up to send herself to phar- tion of the Russian police — is one of an cult to check patients into the clinic and Under Mr Sanalla’s initiative, the Lib-
tough to face. I could lose years of work macy school by selling underwear door estimated 1.2m guest workers in Russia hope’ to run group therapy sessions. yan parties and their foreign backers
in a matter of months.” to door — a business that often doubled from Tajikistan, which has a population Ethiopia has so far avoided a complete would agree that oil revenue would be
He has already had to close his three- her weekly salary. of 9m and is one of the world’s most
Deborah lockdown, but the pandemic has taken frozen for a set period in the NOC’s
Dofernyo
bed hospital and lay off six doctors and The clothing was imported and when remittance-dependent countries. its toll on mental health. “Demand [for account rather than transferred to the
four other staff. The air ambulance is the ports closed, the markets dried up. The $2.6bn they send home amounts services] is increasing but you can’t central bank. The bank has faced criti-
working at just 10 per cent of capacity. Now they have reopened, Ms Dofernyo to more than a quarter of the central tackle it as you want to because you are cism from all factions over a lack of
“If things continue like this, we’ll could restart the business but she has Asian country’s gross domestic product, also affected,” Dr Asmeret said. transparency and the inequitable use of
have to close this business too,” spent all her savings. “Since the lock- according to the World Bank. Dr Asmeret is hopeful that her busi- petrodollars.
he said. down the small profit I have made, and Mr Dzhalilov considered returning to ness can bounce back, but she worries The US and the UN would then over-
Corruption is rife and Mr even my capital, I have used every- Tajikistan but found himself stranded about the fortunes of others. “Both the see negotiations between the rival
Mendez does not trust the thing.” An uncle who worked in mining due to border closures. mental health and economic impact groups and their foreign backers to
government not to siphon sent her family some money but lost Though Russia extended migrants’ could leave a huge scar,” she said. “I negotiate a “very transparent financial
off aid for coronavirus-hit his job due to the pandemic. Still, she right to stay until September, he said don’t think it will take months to arrangement including how the money
businesses. The island’s said the lockdown “was the right thing officials and police had fined him for recover. It could take years.” is spent”, as well as reforming the more
economy is wholly depend- to do because once there is light, there violating regulations. “They just stop Reporting by Valentina Romei, David Pill- than 20,000-strong Petroleum Facilities
ent on tourism and many is hope”. Ghana has recorded just 66 you on the street for looking central ing, Jude Webber, Neil Munshi, Max Seddon Guard, which is made up of militiamen
people have lost their jobs. deaths. Asian,” he said. and Farhan Bokhari and tribal fighters.

Middle East

UAE shakes up ministries in quest for ‘agile’ leadership

Simeon Kerr — Dubai stem the spread of coronavirus. Compa- been gradually lifting restrictions, Covid-19 testing rates in the world, has
nies have slashed thousands of jobs, including reopening shopping malls and seen a spike in new cases over the past
The United Arab Emirates has
triggering an expatriate exodus as inter- offices. This week, the regional tourism three days after infections eased in June.
announced a sweeping government
national flights resume. hub will also welcome international A new survey suggests that the lifting
restructuring, reshuffling the cabinet
As part of the reshuffle, three minis- travellers. “We have to be realistic,” said of restrictions has sparked the begin-
and merging ministries as the Gulf
ters were appointed to look after the one Dubai official. “There needs to be a ning of a recovery in the private sector.
state seeks to revive its economy in the
economic portfolio, in what Sheikh balance between health considerations IHS Markit’s June purchasing manag-
wake of the coronavirus pandemic.
Mohammed called an “absolute strate- and the economy.” ers’ index jumped back to growth with
Sheikh Mohammed bin Rashid al- gic priority”. The UAE, which has one of the highest the first improvement in operating
Business Opportunities Maktoum, UAE prime minister yester- Sultan Al Jaber, chief executive of Abu conditions for six months.
day said the move was aimed at creating Dhabi’s national oil company, was pro- The PMI index, a survey of the busi-
Readers are strongly recommended to take appropriate Legal Notices a more “agile” government. It includes a moted to head a new ministry of indus- ness environment for the non-oil sector,
professional advice before entering into obligations.
plan to merge 50 per cent of federal try and advanced technology. Four enti- pointed to higher domestic and interna-
agencies. ties, including the postal service, are to tional demand since the opening up. But
“Our goal in today’s structural be folded into the federation’s sovereign the report also indicated that compa-
changes is a government faster in wealth fund. nies, struggling from the impact of lock-
decision making and better in seizing The restructuring included a decision down, were still shedding staff and
opportunities and dealing with the new to close half of the government’s serv- reducing salaries to cut costs further.
phase of our history,” he wrote in a ices centres, shifting their operations “Renewed growth in June marked
tweet, giving the new cabinet a year to online within two years. Ministers were only a slight reprieve from the down-
introduce the reorganisation. tasked with expanding digitisation and turn that reached its peak in April,” said
The UAE has been reeling from the a cyber security chief was appointed. David Owen, an economist at IHS
twin shocks of lower oil prices and the Since enduring one of the world’s Sheikh Mohammed: said goal was Markit. “It may be a long path to recov-
economic toll of lockdowns imposed to strictest lockdowns in April, Dubai has faster decision-making ery for the labour market.”
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Monday 6 July 2020 ★ FINANCIAL TIMES 5
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6 ★ FINANCIAL TIMES Monday 6 July 2020

Pilita Clark It’s time to say goodbye to the scourge of modern offices as hot-desking goes cold y WORK & CAREERS, PAGE 18

‘Sabre rattling’ Lack of traffic Shortage of investor interest

leaves hedge fund start-ups on the sidelines
Fed stress
tests predict
European
delays $100m bank losses
China boost for Laura Noonan — New York
Stephen Morris, Owen Walker
and Nicholas Megaw — London

The Federal Reserve expects European

India’s Zomato
banks to post the sharpest losses in key
sectors hit by the pandemic, adding
further pressure on their US operations
which already have mixed shareholder
support.
The latest round of the Fed’s annual
stress tests predict that HSBC and
Santander will have the biggest loss
3 Delivery group awaits Ant funds rates of any large bank in the US
market across credit cards and con-
3 Cash subject to Delhi approval rules sumer lending.
Credit Suisse and Barclays post the
highest loan loss rates in two other cate-
Mercedes Ruehl — Singapore has been critical as Zomato fights for gories: commercial real estate and com-
Stephanie Findlay — New Delhi
market share with Swiggy, its main com- mercial loans. The impact was
The $3bn Indian food delivery start-up petitor, which is backed by Tencent and less material for them due to the small
Zomato has been cut off from its biggest Meituan-Dianping, China’s largest food loan books in those areas, but the result
Chinese investor in the first big example delivery group. still highlights the Fed’s view on their
of how New Delhi’s new foreign invest- In January, Zomato agreed to buy lending risk.
ment laws have hit funding. Uber’s India food delivery business, giv- The tests also show that Deutsche
In January, Zomato announced it had ing the San Francisco company a 9.99 Bank is still expected to burn through
secured $150m in funding from Ant per cent stake in the combined group. capital faster than any of the other
Financial, the Chinese digital payments Close to $100m of the latest tranche of Timothy A Clary/AFP
32 financial institutions whose perform-
group. But it has been unable to access financing from Ant Financial is now Coronavirus turns start-up hedge funds into an endangered species ance the Fed modelled in a fictional
$100m of that total, according to two going through the government’s crash from the start of the year to the
Estimated number of funds launched or liquidated worldwide (quarterly breakdown)
people with knowledge of the situation. approval process. Zomato is “confident” first quarter of 2022.
In April, India announced that it the funds will come through, the people 400 European banks have long had a trou-
would block “opportunistic takeovers” familiar with the situation said. The bled history in the US, growing aggres-
by requiring official approval for any shortfall has not changed the company’s 200 sively from the late 1990s before pulling
investment from a country that shares a overall business plan, one person at 0 back after sizeable losses. HSBC is con-
Zomato said, including a planned initial sidering even sharper cuts than the
public offering in 2021. -200 30 per cent reduction announced earlier
Ant Financial has But the uncertainty caused by the -400 this year.
invested close to $560m new regulation comes as Indian start- Launched -600
Deutsche says it remains committed
ups struggle with the economic fallout Liquidated to a US business which does not yet earn
in Zomato, giving it a of the coronavirus pandemic. -800 its cost of capital, but shareholders and
stake of more than 25% Zomato laid off 13 per cent of its work- 2008 09 10 11 12 13 14 15 16 17 18 19 Q1
analysts remain sceptical. Credit
force in May, and Deepinder Goyal, its Source: HFR 2020 Suisse’s US business has already shrunk
land border with India. In recent years, chief executive, said he expected the significantly, while Santander has been
Indian start-ups have depended on sig- number of restaurants to shrink 25 per trying to revive performance at what
nificant funding from Chinese investors, cent to 40 per cent over the next six to 12 Laurence Fletcher — London quarterly total since late 2008. Mean- assets limited losses better in March was for years its worst-performing unit.
including Tencent and Alibaba, which is months. Swiggy also laid off more than while, 304 funds were liquidated, than smaller firms, according to In the latest review, the Fed said
The coronavirus crisis has made life
Ant Financial’s sister company. 1,000 employees. which was the second-longest casu- Aurum Research. Well-known names HSBC’s US credit card business would
even tougher for start-up hedge
But a wave of anti-China sentiment, Other measures India has taken alty list since the financial crisis. such as Millennium Management, suffer losses of 26.4 per cent of its
funds around the world.
particularly following a deadly clash against China include stalling Chinese “As the [first quarter] devolved into Citadel Advisors and Balyasny Asset total loan balance in the crisis, the
between soldiers from the two countries imports in customs and banning 59 Chi- While some of the biggest names in an unprecedented financial market Management are among those to highest loss rate of the 33 banks ana-
in the Himalayas, has hurt both Chinese nese mobile phone apps, including Tik- the industry, such as DE Shaw and panic and risk tolerance plunged to chalk up double-digit gains in the first lysed. The bank said in value terms it
companies operating in India and Tok and WeChat. Baupost, have been able to take in unprecedented lows, it is not surpris- half of the year. was only $400m and declined to
Indian start-ups with Chinese backers. “There is a lot of sabre-rattling and assets during the crisis, some smaller ing that [hedge fund] launches fell to However, some expect launches to comment further. HSBC’s total loan
Zomato employees in Kolkata posturing going on,” said Arvind Sing- names and new launches are strug- a near historical low or that liquida- pick up soon. Peter Greene, vice-chair losses in the modelled crash came
made headlines last week when they hal, managing director of consultancy gling to gain investors’ attention. tions rose to a five-year high,” said of law firm Lowenstein Sandler’s out at $3.9bn.
burnt their T-shirts to protest against Technopak, in New Delhi. In many cases, investors have stuck Ken Heinz, president of HFR. investment management group, said The potential hit to Santander’s con-
the violence and Chinese investment in “It is next to impossible for India to with well-known funds rather than Investors have also felt less com- that while some debuts might have sumer loan book was estimated at
the company. disengage with China economically at taking a chance on a market entrant. pelled to consider new opportunities been delayed because of the pan- 17.3 per cent of the portfolio — the high-
Ant Financial has invested close to this time,” said Mr Singhal. “But you Just 84 hedge funds launched in the when many large, established funds demic, he did not expect the market est in that category — or $6.5bn. Loan
$560m in Zomato, giving it a stake of have to think like a politician, they have first three months of this year, accord- have performed well. for “well-pedigreed managers” to be losses across Santander’s entire US book
more than 25 per cent. The investment a much bigger constituency to cater to.” ing to data firm HFR — the lowest Funds with more than $5bn in affected by coronavirus. came in at $8.6bn.

Contracts & Tenders

Financials. ‘Insurtech’

Insurance disruptors battle to hit the big time

benefit when customer payouts are low. Lemonade is not the only insurance tomers and convince them to put their
Groups such as Lemonade are “A lot of what we are trying to do is start-up that has yet to win the sort of faith in a new brand. “The cost of entry
winning over investors but capture consumers young,” said Daniel market share that start-ups elsewhere in this market is extremely high. It’s a bit
Schreiber, chief executive. have managed. of an advertising arms race,” said Mr
consumers have yet to follow The company has already expanded Root, for example, is one of the big- Tallents.
from renters insurance into cover for gest insurtechs to target the $250bn US “The big four insurance companies in
homeowners, and is now eyeing other motor insurance market. It generated the US spend north of $2bn on market-
Oliver Ralph — London
markets such as pet insurance. The premiums of $187m in the first half of ing each year . . . it’s incredibly difficult
Lemonade, the SoftBank-backed home model has pulled in a swath of VCs as last year. That is an annualised rate of to break in.”
insurance start-up, got its long awaited well as SoftBank, while other more tra- $374m, but it suggests a market share of Some insurtechs have dropped the
IPO away last week and enjoyed a price ditional investors such as Baillie Gifford, just 0.1 per cent. idea of going direct to consumers
jump. The shares more than doubled to the fund manager, bought in at the IPO. “I am concerned there isn’t anyone in entirely, and are instead working with
$69 on the first day of trading, valuing But for all that enthusiasm, five-year- home or motor doing enough to prop- more established brands to sell their
the company at $3.8bn. old Lemonade is still lossmaking and erly disrupt the marketplace,” said Ste- services.
The start-up is one of the big hopes of has a small share of its core markets. ven Mendel, chief executive of Bought One of them is Trov, which was set up
the “insurtech” sector, with investors Last year, it generated $116m in pre- By Many, the pet insurance specialist. in 2012 with the idea of selling insurance
betting that its combination of slick miums, mostly on insurance for home While there are some interesting ideas for individual items such as cameras.
technology and new ideas about selling renters and homeowners in the US. The such as pay-by-mile car insurance, he Trov started out targeting consumers
will bring in ranks of new customers. US renters insurance market is worth added: “I am nervous that this does not directly, but found that the costs were
The industry is “ripe for disruption”, about $5bn a year, according to CB become big scale disruption, it just too high. So over the past year it has
said Hugh Tallents of consultancy cg42. Insights, while the homeowners insur- becomes a side event.” changed tack, signing partnerships with
“The top four property & casualty ance market is worth about $74bn. Potential disrupters face an array of Lloyds Bank in the UK and Suncorp in
[insurance] carriers in the US were “I just don’t see that Lemonade has challenges, from hefty regulation to Australia instead.
established in and around the great had a significant impact on the industry, finding the capital needed to ensure that “Our decision was an economic deci-
depression and their product offering let alone transformed it in any meaning- claims can be met. sion” said Scott Walchek, Trov chief
hasn’t changed a whole lot since then.” ful way,” said Chris Sandilands at con- But one of the biggest hurdles, say executive. “The proposition was appeal-
CB Insights, the research firm, said sultancy Oxbow in a recent blog post. industry experts, is the need to find cus- ing to consumers but the economics
insurtech companies have raised $17bn weren’t sustainable.”
from investors since the start of 2016. Mr Walchek believes that there is
UK-based Octopus Ventures is one of plenty of scope for partnerships
those that has invested. “You see many between established brands and start-
very valuable, very large, very estab- ups. “Consumer brands have found
lished companies which generally ways to capture millions of customers
haven’t seen the challenge . . . that we but their margins are pressed. Now they
have seen in other sectors,” said Mal- have to increase wallet share by offering
colm Ferguson, a partner at Octopus. new products and services,” he said.
“When we see . . . someone that’s not But some in the industry think that
been displaced for a very long time and direct to consumer insurtechs such as
has a very powerful business model but Lemonade and Root can still make it
customers are unhappy, we know into the big time.
there’s something there that could be “It is a matter of time,” said Mr Fergu-
interesting for us.” son. “These businesses take 10 or 20
Lemonade is aiming to shake up years to become really disruptive . . .
home insurance with promises to use “In 10 years, I don’t see how the old
artificial intelligence to settle claims school players can compete with those
quickly and a business model designed that are more efficient and can lower
to ensure charities receive some of the Shares in lossmaking Lemonade soared on their debut last week — Annabel Cook/FT claims,” he added.
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Monday 6 July 2020 ★ FINANCIAL TIMES 7

COMPANIES & MARKETS

Pharma industry takes its shot at redemption

As the threat of price reform recedes, drugmakers have seized on the pandemic as a chance to rebuild their reputation
Hannah Kuchler — New York ment Management, said that since
Attracta Mooney — London December far fewer pharma companies
had cut their earnings forecasts com-
It is almost five years since Hillary Clin- pared with the whole of the S&P 500.
ton sent her $15bn tweet. And even with the blistering rally in
Locked in a bruising battle with some stocks, Ms Roland said valuations
Bernie Sanders for the Democratic pres- were “attractive”, with healthcare trad-
idential nomination, Mrs Clinton wiped ing at a forward price/earnings ratio of
billions off the value of America’s drug- 16 times, the second lowest after finan-
makers in late September 2015 by vow- cials.
ing to take on the “outrageous” pricing If the pandemic has cast the industry
of certain medicines. in a more benevolent light to politicians
The 89-character warning helped and the public, sustaining that and its
usher in a period during which the potential benefits will be far from
threat of a root-and-branch reform of straightforward.
drug pricing has hung over the US phar- The economic repercussions of the
maceutical industry. crisis are likely to make politicians more
But as America’s politicians struggle sensitive both to large drug bills funded
to manage the country’s worst public by taxpayers, including the US govern-
health emergency in decades, drugmak- ment-backed schemes Medicaid and
ers have seized on the coronavirus pan- Medicare, and the pain of uninsured
demic as a rare opportunity to recast the patients.
industry’s reputation. According to a West Health and Gal-
“We went from having been a political lup poll published last month, nine out
piñata in January to a recognition, at of 10 Americans were worried that the
least in the minds of many policymak- pharmaceutical industry would use the
ers, that this is an industry that we must pandemic to raise drug prices, with two-
support,” said Jeremy Levin, chair of thirds of the concerned identifying as
industry association BIO and chief exec- Democrats.
utive of Ovid Therapeutics. Martyn Hole, investment director at
Mr Levin pointed to the hundreds of Capital Group, a US investment man-
companies that have started work on agement firm, said many pharma com-
Covid-19 vaccines and antivirals, prov- panies had so far focused on promoting
ing the industry was committed to US biotech Moderna’s shares more than doubled after the group broke ground by getting a potential vaccine into human trials — Adam Glanzman/Bloomberg the “greater good”. But “a fight about
action while the federal government has equitable distribution of the first vac-
been slow. Healthcare stocks remain good value Healthcare stocks have remained resistant to market cines may lie ahead,” he cautioned.
Wall Street’s verdict is clear: the “How companies price their vaccines
industry is a winner from the crisis. Price earnings ratio (x) downgrades and drugs will be closely scrutinised.”
The S&P 500 pharmaceuticals, bio- Analyst revisions to consensus earnings per share for 2020, rebased The first round in the fight erupted
S&P 500 Healthcare Phama & biotech
tech and life sciences index has outper- last week when Gilead, which has given
30 100
formed the broader S&P 500 this year, away more than a million doses of rem-
while the Nasdaq biotech index has desivir, announced its pricing plan for
25 S&P 500
done the same. Among the biggest win- 90 the drug. The $2,340 it intends to charge
Healthcare
ners are those businesses directly governments for a 5-day course drew
involved in developing a potential treat- 20 immediate fire from advocacy groups
80
ment or vaccine. Earnings revisions on the for being too expensive. Gilead insisted
Shares in California-based biotech 15 the price was “well below” what it con-
70 wider market have collapsed
group Gilead Sciences, which was at the four times the amount of the S&P 500 sidered to be the drug’s benefits.
centre of political firestorm in 2014 over 10 With the US presidential election just
healthcare sector
a $1,000-a-day hepatitis C drug, are up 60 months away, the interplay of the battle
18 per cent after it became the first com- 2000 2005 2010 2015 2020 Q2 19 Q4 19 Q1 20 Q2 20 for the White House and the pricing of
pany to win emergency approval for a Covid-19 treatments could yet prove
Source: FactSet Source: FactSet
Covid-19 treatment, its antiviral remde- toxic for the industry.
sivir.
The stock of Moderna, a Boston-head-
quartered biotech has fared even better, example, promised that its vaccine, if Jim Paulsen, chief investment strate-
more than doubling after the group successful, will be produced on a “not- gist at The Leuthold Group, an inde-
broke ground by getting a potential vac- for-profit basis.” pendent investment research firm, said
cine into human trials. John Bowler, manager of Schroders it was home to many “steady eddies”, or
Nor is it just the likes of Gilead and global healthcare fund, said that compa- companies that produce medicines that
Moderna that are now hot properties. nies appear to see tackling the pan- consumers cannot do without.
With Mr Sanders abandoning his sec- demic as a part of a “national service”, as At the same time, the sector remains
ond tilt at the White House and Donald well as a chance to showcase the benefits fertile hunting ground for companies
Trump failing to follow through on his the industry can bring to the US. “The promising high-octane growth, with
promise to protect patients from large industry is doing its best to use the “biting edge innovative research and
out-of-pocket costs, there is rising confi- investment in vaccines and treatments development”, according to Mr Paulsen.
dence among investors that the danger and helping local community health Within Wall Street’s universe of bio-
to the industry’s profits from Washing- systems as a means to show the positive techs, those that have shone brightest in
ton has, for now at least, subsided. value an innovative pharma and biotech the pandemic are companies with
Alex Gold, who runs the global health- industry can bring to society,” he said. recently launched treatments that
care fund at Fidelity International, has But Wall Street has also welcomed the promise rapid expansion. Vertex, a
lifted his exposure to pharma compa- fact that many companies are also maker of a treatment for cystic fibrosis,
nies. Positive press for drugmakers reducing their financial risk by taking and Seattle Genetics, which won earlier-
means the “immediate short-term risk” government support to develop vac- than-expected approval for its new
of an overhaul of legislation on drug cines before trials show that they work. breast cancer drug, have outperformed.
pricing has dissipated, he added. While the public health crisis Not every company has emerged
If some fund managers are simply unleashed by Covid-19 has been a boon unscathed. The lockdowns imposed to
hoovering up pharma stocks as the for pharma companies, investors say contain the virus are likely to have hit
political threat recedes, others believe the subsequent recession has done sales of drugs that need a doctor to
the pandemic could yet herald a more little harm to the sector’s investment administer them, while the delay in
far-reaching change in which US phar- credentials. non-essential surgery has hurt others,
maceutical companies swap what has including Smith & Nephew. Last week,
sometimes been near pariah status for the London-listed maker of medical
that of vital national champions. Com-
‘A fight about equitable devices said that a delay in elective pro-
panies are certainly alive to the possibil- distribution of the first cedures had dented revenues, and its
ity. shares are down 14 per cent this year.
Johnson & Johnson, the largest health-
vaccines may lie ahead’ Despite these pockets of pain in the
care company and one caught up in legal Martyn Hole, Capital Group sector, Emily Roland, co-chief invest-
battles over the opioid crisis, has, for ment strategist at John Hancock Invest-

Pharmaceuticals

Australia’s CSL warns of vaccine rush

Jamie Smyth — Sydney want to make sure you’re doing the Perreault said.
right thing.” He warned of severe consequences
Safe distribution of a Covid-19 vaccine
Among the other companies working from pushing out a product without
to billions of people could pose a signif-
towards a vaccine candidate are Ger- thorough preparation, highlighting a
icant challenge, warned the head of
many’s BioNTech, the UK’s AstraZeneca dengue fever vaccine developed by
Australia’s biggest drugmaker, who
and US-based Moderna. In May, the Sanofi Pasteur that was given to 1m chil-
expects that at least one such product
head of US group Merck cast doubt on a dren in the Philippines in 2016. Its dis-
should be ready within a year.
vaccine being available in 18 months. tribution was halted a year later after it
Paul Perreault, chief executive of CSL, “We’re not racing against each other, transpired that in rare cases the vacci-
urged the pharmaceutical industry not we’re racing against the disease,” Mr nation could trigger potentially fatal
to rush out a vaccine and said that more cases of dengue.
collaboration was needed to lay the Mr Perreault also pointed to compli-
ground for manufacturing and distrib- cations with an H1N1 vaccine in 2009,
uting a final product. which suffered production and distribu-
Melbourne-based CSL is behind one tion delays that curbed its effectiveness.
of the more than 100 Covid-19 vaccines “It’s not just making the vaccine
in development and is also working on components, but then what do you put
treatments using blood plasma, a spe- [them] in?” he said. “Who has the vials?
cialism for the company. A rally in its Who has the stoppers? Who has the
shares meant it briefly overtook BHP as syringes? How are you going to be able
Australia’s most valuable listed com- to put it into the vials, and then what
pany earlier in the year. about distribution?”
“Everybody wants to get everybody to CSL has collaborated with University
speed up and try to get rid of red tape,” of Queensland on its vaccine candidate.
Mr Perreault told the Financial Times. Mr Perreault said if the vaccine proved
“But a reason that some of that tape is effective the company would price it at a
there is for safety purposes, when you reasonable level. “We’re not going to be
know you’re going to have to be giving A hurried launch could carry risks, gouging people for a vaccine — that’s not
billions of doses of this vaccine, you says CSL chief Paul Perreault CSL. That is not our culture.”
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8 ★ FINANCIAL TIMES Monday 6 July 2020

COMPANIES & MARKETS

Banks Financials

Deutsche job cuts slowed by coronavirus Marshall

Wace targets
Lender says it is on track edged that the economic fallout from
Covid-19 had made turnround at Deut-
the slowdown” in the second half of this
year, he promised the bank would meet
rate “plateaued” in the second quarter,
Mr von Moltke said.
cumulative losses over that period. Mr
von Moltke said two years ago that
$1bn for ESG
to hit financial targets
despite disruption
sche more difficult but was defiant on
the lender’s progress.
its ultimate target by the end of 2022.
Last July, after abandoning a merger
The finance chief, who joined from
Citigroup in July 2017, has been a key fig-
Deutsche was stuck in a “vicious circle
of declining revenues, sticky expenses,
hedge fund
“Our core strategic decisions have with Commerzbank, Deutsche unveiled ure in the revival of Deutsche, which is lowered rating and rising funding costs”.
Stephen Morris — London been vindicated; we have delivered on a three-year plan that mapped out a dra- trying to rebound from an ill-advised Deutsche has “clearly turned a corner”
Olaf Storbeck — Frankfurt all of our promises . . . [and are] on matic retreat from investment banking, attempt to crack the US market. since then, said Mr von Moltke, but Laurence Fletcher — London
track to deliver on the targets that we set set up a €288bn “bad bank”, and prom- The lender has not made an annual executives were “not taking a lot of vic-
Marshall Wace, one of Europe’s biggest
Deutsche Bank’s chief financial officer for 2020,” he said in an interview. ised 18,000 job cuts and €5.8bn in cost profit in five years, racking up €14bn in tory laps” yet.
hedge funds, is planning to raise $1bn
has warned that coronavirus has left it “The corona crisis means we did delay reductions. Since a low in mid-March, the bank’s
for a new fund that will trade stocks
racing to speed up redundancies to some parts of the restructuring over the The bank has committed to removing shares have risen 75 per cent, outstrip-
achieve a key pledge on job cuts, but said course of about six weeks, which was 4,000 staff from the payroll this year to
‘Our core strategic ping the 17 per cent gain in the bench-
based on their environmental and
other ethical attributes, the latest sign
it remained on track to hit its financial just a hiatus,” said Mr von Moltke. “The help trim €2bn from expenses. decisions have mark index of European bank stocks.
that a sector known for its focus on
targets this year despite the disruption. glide path is something like a thousand It eliminated about 1,000 positions in Funding costs have fallen, its capital
Speaking on the first anniversary of heads a quarter.” the first three months of 2020 —
been vindicated’ buffer has been repaired and it has ben-
profits sees opportunities in responsi-
ble investing.
the German lender’s historic strategic He said that while “I can’t tell you as I through a combination of normal James von Moltke, finance chief efited from a surge in fixed-income
overhaul, James von Moltke acknowl- sit here today if we can compensate for departures and redundancies — but the trading revenue in volatile markets. The London-based firm, headed by
founders Paul Marshall and Ian Wace,
will draw on the expertise of external
analysts focusing on how companies
address environmental, social and gov-
Market Questions. Cross asset ernance issues. The new fund will buy

Brexit talks put pound back in spotlight as

stocks with strong ESG characteristics
and bet against stocks with poor ratings.
The move from such a high-profile
hedge fund, with a total of around $45bn

investors debate gold price and Hong Kong in assets, indicates that ESG considera-
tions are evolving away from a niche for
specialist investors and forming a more
central role in how funds assess risks or
try to pick higher-performing stocks.
FT reporters Marshall Wace declined to comment.
People familiar with the plans for
Will EU talks improve the pound’s the new fund say it will be part of
prospects? Marshall Wace’s $19bn computer-
driven Tops trading system, which anal-
Sterling will be back in investors’ sights yses “buy” or “sell” recommendations
today, when UK and EU negotiators are from around 1,000 external analysts at
scheduled to meet in London to ham- banks or research houses to come up
mer out an arrangement on their future with trading signals.
relationship in a bid to strike a deal by The launch underlines how hedge
the end of the month.
After four days of talks last week,
Michel Barnier, the EU’s chief negotia-
Marshall Wace will also
tor, raised the prospect of a deal, and the filter out sectors such as
pound responded. Having started July
on a lacklustre note, it gained 1 per cent
adult entertainment,
over the week, trading at $1.24 on Fri- tobacco and weapons
day from an intraday low of $1.22 on
Monday. funds are increasingly looking to the rise
Unless the UK meets its self-imposed of interest in ethical investing as a way of
end-July deadline for a trade deal with making money. Caxton Associates and
the EU, it will drop out of the EU’s single Man Group are among funds that have
market and customs union at the end of been hunting for reliable ways of identi-
this year, having left the bloc in January. fying stocks with strong or improving
Preparations for a no-deal outcome ESG characteristics that could beat the
are still under way. German chancellor market. Global sustainable investing
Angela Merkel said on Thursday that assets totalled around $30tn in 2018,
the bloc had to prepare for a worst-case according to the Global Sustainable
scenario. This has kept some strategists Investing Alliance.
on edge. It also comes as some of the biggest
“We think that the headwinds to ster- names in the $3tn hedge fund industry
ling are mounting and are likely to have been able to lure in client assets
intensify in the second half of the year,” during the coronavirus crisis. Many
Bank of America analysts said in a note. investors are opting to put their money
But some strategists say recent devel- with large, well-known firms, many of
opments offer a glimmer of hope that which have made money during the cri-
sterling could shift higher. EU chief Brexit instruments such as US government which purchased a record 625 tonnes of Some investors are bullish. Credit sis, rather than risk a small or new fund
Derek Halpenny, an analyst at MUFG negotiator bonds effectively paying investors a neg- bullion in the first half — remains ele- Suisse expects Hong Kong stocks to out- that may be hard to meet face-to-face
Bank, said the more positive note struck Michel Barnier, ative return if held to maturity. “Real vated. Citi reckoned ETF investment perform many other developed mar- because of travel restrictions. DE Shaw
by the EU late last week suggested the right, and Brexit rates are already around the lowest lev- purchases could total 900-1,000 tonnes kets this year. The bank points to inex- and Baupost are examples of big funds
chance of a deal was now “more credi- adviser David els in seven years. This raises the risk by the end of the year and that jewellery pensive valuations, a healthy dividend that have raised money quickly in
ble”. He said: “We have been very dubi- Frost attend the that any bounce from recent lows takes demand in Asia could also start to pick yield and an improving economic pic- recent months.
ous of the UK deadline of a deal being first round of a bit of shine off gold, triggering some up from low levels. Neil Hume ture in China, which appears to have Marshall Wace, which recently made
outlined by the end of July. So if that post-Brexit unwinding at least in the near term.” Covid-19 largely under control. around €150m in a couple of weeks
assumption proves wrong, we would trade deal talks After Thursday’s strong jobs report, Where next for Hong Kong’s stock Hong Kong’s market has also bene- from betting against collapsed German
certainly see grounds for sterling’s out- in Brussels in US government debt came under mod- market? fited from rising tensions between the fintech Wirecard, will also filter out
performance.” Eva Szalay March —Oliver Hoslet/ est selling pressure, pushing the bench- Hong Kong’s stocks have faced a series US and China. The Trump administra- stocks in sectors such as adult entertain-
Pool via Reuters
mark 10-year Treasury yield up 0.03 of challenges over the past 12 months, tion’s moves to apply pressure on Chi- ment, tobacco and weapons.
Will gold continue its rise towards percentage points to 0.7 per cent. Gold, including anti-government protests and nese companies listed in New York have Tops is headed by Anthony Clake,
$1,800 an ounce? meanwhile, fell back to $1,768 an ounce, coronavirus. Now they face a new threat coincided with a flurry of big-ticket sec- who joined the firm directly from
As the price of an ounce of gold hovers down from $1,788 earlier in the week. By — Beijing’s imposition last week of a ondary offerings in Hong Kong, includ- university in 2001 and has overseen
close to $1,800 for the first time in nine Friday afternoon, it was trading at just controversial national security law. ing internet groups NetEase and JD.com. the strategy’s growth. Analysts contrib-
years, analysts and investors are asking under $1,782. Set against that is evi- Traders have so far shrugged off the Some analysts think more international uting to Tops are paid based on how
whether the metal’s rise will continue — dence of strong demand for gold, along latest political drama, which has investors could be drawn to the market well their recommendations perform,
or if profit-taking will drag it back down, with gold-related equities, from a grow- sparked international condemnation as it pivots away from banking and and are sifted to try to make sure those
after a near 16 per cent gain this year. ing pool of investors worried about the and fears that Hong Kong’s days as a glo- property stocks towards areas such as with winning bets stay in while those
Joni Teves of UBS thought the latter inflationary impact of unprecedented bal financial hub are numbered. The online shopping. with poor recommendations are
was more probable. She said this was central bank stimulus. benchmark Hang Seng index gained 2.7 “As the index moves more to ecom- excluded.
likely to be the case even though gold’s Recent share sales by Harmony Gold per cent the day after police arrested merce, Covid-19 will be less of a drag and The firm’s Market Neutral Tops fund
big disadvantage as a financial asset — and Polyus Gold were met with very hundreds for protesting against the leg- more of a boost for Hong Kong,” said has gained around 6.4 per cent in the
that it provided no income — had strong interest, while demand from islation, which gives China sweeping Andrew Sullivan, a stock broker in the first five months of the year, said a per-
become increasingly irrelevant with safe gold-backed exchange traded funds — powers to target acts it deems seditious. city. Daniel Shane son who had seen the numbers.

Technology Food & beverage

Toshiba clash with activist tests security law Flora maker Upfield plans margarine revival
Leo Lewis and Kana Inagaki — Tokyo Under Japan’s newly revised Foreign In an unusual move for Effissimo, Judith Evans perceived as less “natural” than butter, is . . . that requires huge investment in
Exchange and Foreign Trade Act whose strategy often involves taking even as other plant-based alternatives products,” Mr Haines said.
A clash between Toshiba and a secre- The KKR-owned spreads business
(Fefta), which came into force last very large stakes in blue-chip Japanese to dairy have grown in popularity as Upfield bought Arivia, the Greece-
tive Singapore-based activist fund is Upfield is seeking to tap into growing
month, Effissimo’s proposal could draw companies, it has partnered with consumers look to reduce the carbon based owner of vegan cheese brand
poised to create the first test case of demand for eco-friendly “plant-based”
government intervention if the move to Tadashi Kunihiro, a prominent lawyer footprint of their diet or try veganism. Violife, at the start of this year.
Japan’s highly controversial new foods as it overhauls brands such as
shake up the board were considered a with experience in unravelling the “Margarine sales have been declining, Private equity firms, such as KKR,
national security law on foreign invest- Flora and I Can’t Believe It’s Not Butter!
threat to Japan’s national security. country’s corporate scandals. but I think we can turn that around once typically hold assets for three to five
ment. to combat sliding sales of margarine.
“I agreed with Effissimo that there is years before selling or listing them.
The row was triggered when the fund, still an issue with Toshiba’s corporate David Haines, chief executive of the But Mr Haines said the changes to
Effissimo, which is Toshiba’s largest
Effissimo’s lawyer, Tadashi culture, and similar scandals could Amsterdam-based company, said the
‘We can turn that around Upfield, which employs about 4,000
shareholder with a 15 per cent stake, Kunihiro, has experience emerge in the future since it lacks a cri- group had slashed existing product lines once people realise the people and also owns Elmlea, Becel,
submitted a proposal that would have sis mentality,” said Mr Kunihiro, who in favour of new launches such as plant- Country Crock, and Blue Band, were
put its founder on the board of the 145-
in unravelling Japan’s proposed the two other directors on Eff- based cream, vegan chocolate spread
benefits of the plant-based intended to outlast that period.
year-old Japanese industrial heavy- corporate scandals issimo’s slate. and “plant butter” since it was bought nature of margarine’ A person close to KKR said it bought
weight. Effissimo’s investments have fre- for €6.8bn from Unilever in 2017. Upfield intending to strip out inefficien-
Last month, Toshiba rejected the pro- Toshiba, which is engaged in the quently caused shockwaves in corpo- Margarine sales have fallen for at least people realise the benefits of the plant- cies but decided on a new strategy after
posal to add Effissimo’s founder and two nuclear industry, appeared along with rate Japan and raised eyebrows within a decade as consumers returned to based nature of margarine,” Mr Haines spotting consumer appetite for “sexy”
other non-executive directors to its 557 other companies that were desig- the government. The fund is run by the butter, resulting in 11 years of declining said. “Dairy butter is one of the worst plant-based foods. Upfield said net sales
board. The plan, which Effissimo said nated by the government in May as the former colleagues of Japan’s most revenue for the division during its time offenders when it comes to carbon grew 1.3 per cent in 2019 to €2.8bn.
was designed to strengthen compliance, highest category of national security- famous activist, Yoshiaki Murakami, as part of Unilever, according to Upfield. footprint. We know we are on the right Sales of plant-based alternatives to
comes after recent financial irregulari- related business. who was convicted of insider trading in The company said it had returned to side of the trends in the global food meat, dairy and eggs rose 11 per cent
ties at one of Toshiba’s second-tier sub- Although the government has the mid-2000s. growth in 2019. industry.” year on year in the US to $5bn in 2019,
sidiaries. stressed that the Fefta regime is not A Japanese government official said “It’s a complete repositioning of a To boost margarine’s image, Upfield is according to The Good Food Institute.
The highly public clash with its largest designed to deter or constrain financial the dispute should be resolved between very traditional company,” Mr Haines tweaking its recipes and reducing each However global margarine sales
shareholder has erupted at an impor- investors, foreign fund managers have Toshiba and its shareholders through said in an interview with the Financial product to around five “natural” ingre- shrank 8.6 per cent by volume in the
tant juncture for Toshiba, as it tries to expressed concerns that the law might dialogue, but declined to comment on Times. Upfield now describes itself as dients to create “cleaner labels”. decade to 2019 to 3.9m tonnes, accord-
draw a line under an accounting scandal be used to hobble activism and have how the new Fefta law would be applied “the world’s largest producer of plant- “People will believe that margarine is ing to Euromonitor, while butter sales
in 2015 and a financial crisis which been waiting for a test case to know to this situation. based foods”. natural, when margarine is natural. It’s rose 11.4 per cent to 2.5m tonnes.
almost took it down. where the lines might be drawn. Effissimo declined to comment. Margarine has suffered from being incumbent on us to show that it Additional reporting by Kaye Wiggins
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Monday 6 July 2020 ★ 9

COMPANIES & MARKETS

How to Lead. Jaime Augusto Zobel de Ayala, chief executive, Ayala

Stepping up in a time of crisis

Ayala is one of many global compa- chain, and Aboitiz, a diversified holding
The conglomerate’s nies that have come up with coronavirus group, joined in the 1.5bn peso effort.
response to coronavirus corporate social responsibility pack- The Ayalas’ focus then turned to their
ages, and announced them with greater employees, and the network of midsized
has proved a game changer or lesser amounts of fanfare, credibility and small companies that surround the
for the Philippines, and self-serving corporate spin. group, from material suppliers to mall
What is striking about Ayala’s tenants. Ayala announced the biggest
writes John Reed response is that it won over one of south- chunk of its relief: “business operations
east Asia’s toughest and most feared pol- waivers”, which included short-term

I
n mid-March, when Philippine iticians. Before the pandemic came rent forgiveness for tenants, and grace
president Rodrigo Duterte declared along, Ayala was in trouble with the periods for its Globe customers’ phone
a “state of calamity” after a spike in administration because of a long-run- bills and bank customers’ loans.
Covid-19 cases, economic and social ning, politically charged dispute over its Ayala encouraged its employees to
stability in the developing archipel- water company in Manila. In December, pitch in to the relief effort by sacrificing
ago nation was looking precarious. Mr Duterte attacked its family owners part of their first quarter bonus. “All of
As the president imposed one of Asia’s and Manuel Pangilinan, CEO of another this happened before any government
strictest lockdowns on Metro Manila, family conglomerate and water conces- initiative or government engagement,”
police erected roadblocks, imposed sionaire First Pacific, calling them “son Mr Ayala says. “It was an instinct.”
harsh punishments for curfew violators, of a bitch” and threatening to “ruin your In mid-March the government’s Cov-
and prevented millions of day labourers face” in a rant that hit the companies’ id-19 task force did turn to Ayala for
from reaching work. Concerns over food share prices and sent a chill through help converting an exhibition centre
security in the megacity rose late in the Philippine big business. into a 502-bed pandemic facility, which
month after a demonstration of hungry Ayala’s response to the virus appears it completed in a week. “Our whole con-
people in one slum ended in violence. to have proved a game changer. In an struction team were out of work and
While the government scrambled to they were delighted to do it to get out of
marshal its resources to fight the pan- ‘We got together as a the home and do something.”
demic, managers at Ayala, the family- Ayala also built for the Philippine Red
controlled conglomerate, were already community and said, Cross a coronavirus testing centre with
at work on their own response.
In early March, Ayala’s chief Jaime
“Let’s fill a gap, because capacity to conduct 3,000 tests a day,
which has allowed authorities to ramp
Augusto Zobel de Ayala, 61, and his this is going to be bad”’ up screening for the virus and keep
younger brother Fernando, CEO of the closer tabs on its spread.
group’s land unit, began brainstorming uncharacteristically conciliatory and While family CEOs such as Mr Ayala
at a meeting of the group’s operating sincere moment in May, Mr Duterte speak in terms of obligations, political
companies, which include property, apologised to both Ayala (he specified analysts point to a symbiosis between
construction, water, the country’s sec- the company, but did not say which the country’s overstretched, and at
ond-biggest telecoms company Globe brother) and Mr Pangilinan for his times feckless, governments, and pri-
and Bank of the Philippine Islands. “hurting words”, and thanked them for vate groups that deliver infrastructure
One of their first conclusions was that helping to fight coronavirus. or services for profit in normal times,
the government’s emergency response, Ayala’s CEO, while declining to com- and emergency help when needed.
including stimulus money needed to ment on the dispute, confirms that he Aries Arugay of the University of the
help businesses and individuals survive, and his brother wrote to Mr Duterte to Philippines thinks the country’s family
would take time. “And so we got thank him for his words. “It was a good billionaires have been “altruistic” by
together and as a community put some moment to start closing that chapter,” providing aid during the pandemic. But
numbers on the table and said ‘Let’s fill a he now says. “Of course it was warmly he also thinks they are “hedging their
gap, because this is going to be bad’,” the received and appreciated on our part.” Jaime Augusto Zobel de help, which are frequent given the coun- Manila’s legions of day labourers, bets” if the political camp Mr Duterte
Ayala chief says via a Zoom call. He says that when the crisis hit “we Ayala: ‘We all have to work try’s regular disasters, such as typhoons, including the roughly 75,000 construc- represents extends its hold on power
Since March, the group has by its own were there from day one, regardless of hand in hand with others earthquakes, and volcanic eruptions — tion workers Ayala uses on projects. after he leaves office in 2022 and the
reckoning stepped up with response what had been said or what feelings — to preserve the ecosystem like the one in January at Taal. Philip- Led by Fernando, the Ayala brothers family groups need to “fight for favours
measures worth 9bn pesos ($181m) in it’s the way we work”. we are in’ — Paul Miller/Bloomberg pine governments, past and present, are began phoning up other businessmen to against Duterte-backed oligarchs”.
emergency food and medical aid and How the Philippines’ oldest conglom- limited in their financial resources, and put together an emergency food distri- For now Ayala’s focus — and the gov-
loan, bill and rent deferrals or forgive- erate went from political hot water to reliant on big private groups to supply bution programme, using vouchers ernment’s — is squarely on the pan-
ness for its customers and suppliers. the receiving end of a rare Duterte apol- Leadership basic infrastructure and services in pub- rather than handouts to preserve bene- demic, which shows no signs of abating
“This is a period where we all have ogy is a story that speaks richly about More interviews illuminating lic-private partnerships. ficiaries’ dignity, and distributing them after more than 38,000 cases to date and
to work hand in hand with others to the complex symbiosis between govern- the personalities of high-profile According to Mr Ayala, the company through Roman Catholic churches to nearly 1,300 deaths. The Philippine gov-
preserve the ecosystem we are in,” ment and business in the country. leaders by focusing on the began devising its response to Covid-19 ensure they targeted the urban poor ernment and central bank have indeed
Mr Ayala says. “All of us have to hold Ayala, like other Philippine family issues they faced ft.com/ before receiving a request for help. who needed it most. About 20 compa- found their footing — with help from big
hands, suffer a little bit together for companies, has a long history of howtolead At their meeting in early March, the nies in all, including San Miguel, the business, which is now focusing on get-
the sake of rising back together.” responding to government requests for group executives discussed ways to help brewing group, Jollibee, the fast-food ting back to work.

The leadership areas of business). The goal? An

“ambidextrous” leadership style that
important. Tulgan’s book is timely,
relevant and appealing.

we don’t see, balances “conflicting and often

paradoxical forces”. ‘Winning Now, Winning Later: How
Companies Can Win in the Short
and how to be ‘The Art of Being Indispensable
at Work: Win Influence, Beat
Term While Investing in the Long
Term’, by David Cote

indispensable Overcommitment and Get the Right

Things Done’, by Bruce Tulgan
This book is aimed at helping us all
When David Cote became chief
executive of Honeywell of the US in
2002, he took over from Larry
become one of those “go-to people” Bossidy, a tough-nut boss, who had
FT journalists recommend that every company has — those written a business bestseller called
whose wisdom, efficiency and easy Execution: The Discipline of
their top business reads way with colleagues is underpinned Getting Things Done.
by firm expertise in their area of It is a surprise, then, to discover
work. from his excellent and detailed
‘Backstage Leadership: The Invisible It will, because of its title, especially account of how to run an industrial
Work of Highly Effective Leaders’, appeal to those who already recognise business that the company Cote
by Charles Galunic themselves as “people pleasers” and inherited “needed to execute
The late organisational theorist James whose MO better”. Behind the “facade” was
March, who happened to teach at work is to gain “a train wreck . . . on the verge of
Charles Galunic at Stanford, used to traction through failure”.
say that leadership was a delicate co-operation and As for getting things done, “just
combination of “poetry and charm. get it done” was what the finance
plumbing”. But Tulgan’s advice department told the business
Galunic’s book does not neglect the (itself charmingly divisions when they were
poetry. He writes well about the presented) is helpful struggling to make demanding
responsibility of leaders to set to everyone: “Navigating collaborative quarterly targets. It led to
compelling visions for their teams relationships [at work] is not going “untrammelled short-termism and
and sell them while in the glare of the away. And doing that job very, very a compromised strategic planning
public spotlight. But his emphasis is well is how true go-to people, in the process”.
on the prosaic plumbing and electrics. real world, win real influence, beat One lesson may be not to read
The “creating, maintaining and over commitment and get the right books written by ostensibly
integrating” of fundamental things done.” successful chief
processes such as developing talent, Tulgan, who is an adviser to executives, but
crafting culture, handling business leaders, is good on tips for Cote’s could be the
contradictions — “are the key, albeit avoiding saying yes when you need to exception that
backstage, sometimes invisible, work say no — avoiding over commitment, proves that rule.
of business leaders”. which is a huge potential problem for It contains its
This is not a book about how to the organisation’s go-to person. share of self-
tackle the particular challenges of Because in a collaborative world, the congratulation
managing out of a pandemic or key to influence is to work across and rather too many nods to
through a recession teams, in tune with your boss but not former colleagues. On the other
— it was written limited to vertical decision making. hand, Honeywell had increased in
before lockdown. Working horizontally or diagonally value from $20bn to $120bn by
There is, however, across other teams and projects the time Cote left in 2018, so he
plenty here to help requires technical skills — and also has earned the right to boast a
hard-pressed people management. little. Winning Now, Winning Later
leaders in a crisis, The key to that? Not expecting is also rescued by just enough
richly illustrated anything back. There’s no quid pro emphasis on mistakes made and
with examples from business, sport quo for true go-to people, who do “not lessons learnt, and a large dose of
and society. keep a tally sheet of equivalent highly practical advice on
For instance, Galunic suggests favours to be traded for inducing leadership, including how to ride
“scanning and sensemaking” — the colleagues to take specific decisions or out a recession.
process of capturing signals and actions,” he writes. “If you believe in Above all, Cote underlines how
interpreting them — are vital real influence, you serve others to try to meet the central business
approaches to uncertainty. He also because that’s what’s right and that’s challenge of investing for the
revisits another Marchian idea what creates the most value for future and yet attaining short-term
about managing the contradiction everybody, in the short term and the results, “accomplishing two
between “exploration” (including long term.” seemingly conflicting things at
innovation and invention) and In tight post-crisis workplaces, the same time”.
“exploitation” (the endless search being someone dependable and
for further efficiency in existing skilled is going to become evermore Andrew Hill and Isabel Berwick
 UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws
10 ★ FINANCIAL TIMES Monday 6 July 2020

MARKET DATA

WORLD MARKETS AT A GLANCE FT.COM/MARKETSDATA

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

-1.33% -0.80% -0.088%

No change
0.45% 0.52% 0.36% 0.72% 0.99% 0.08% 0.089% 0.111% 0.02% 0.36%
Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison
AMERICAS EUROPE ASIA
Jun 04 - - Index All World Jun 04 - Jul 03 Index All World Jun 04 - Jul 03 Index All World Jun 04 - Jul 03 Index All World Jun 04 - Jul 03 Index All World Jun 04 - Jul 03 Index All World

S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul

3,130.01 6,341.44 12,528.18 22,695.74 2,151.18 2,152.41

3,112.35 15,575.11 15,596.75 6,157.30 12,430.56 22,306.48

Day 0.45% Month 1.60% Year 5.28% Day -0.16% Month 0.14% Year -5.91% Day -1.33% Month -3.72% Year -19.25% Day -0.64% Month 0.33% Year -0.70% Day 0.72% Month -0.09% Year 2.54% Day 0.80% Month 3.12% Year 1.43%

Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore
10,207.63 25,373.12
1,425.89 1,424.15 7,566.80 2,700.39
9,682.91 37,872.89 37,789.58 7,403.50 24,366.30 2,652.94

Day 0.52% Month 6.24% Year 25.88% Day 0.15% Month -0.89% Year -12.72% Day -0.80% Month -0.95% Year -7.97% Day NaN% Month NaN% Year NaN% Day 0.99% Month 5.65% Year -12.20% Day 0.62% Month 1.55% Year -21.32%

Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai
3,152.81 36,021.42
96,478.71 19,634.03 19,726.65
5,011.98 5,007.14
26,269.89 25,827.36 93,002.14 33,980.70
2,921.40
Day 0.36% Month 0.33% Year -3.58% Day 0.55% Month 4.05% Year -5.17% Day -0.84% Month -0.30% Year -10.89% Day -0.81% Month 0.22% Year -10.14% Day 2.01% Month 7.92% Year 3.58% Day 0.50% Month 6.49% Year -9.53%

Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous
Argentina Merval 39758.20 39500.85 Cyprus
CSE M&P Gen 68.46 68.68 Italy FTSE Italia All-Share 21519.26 21677.48 Philippines Manila Comp 6372.66 6364.08 Taiwan Weighted Pr 11909.16 11805.14 Cross-Border DJ Global Titans ($) 372.93 373.20
Australia All Ordinaries 6163.70 6142.30 Czech Republic
PX 938.00 938.45 FTSE Italia Mid Cap 33448.06 33451.48 Poland Wig 50959.44 50937.18 Thailand Bangkok SET 1372.27 1374.13 Euro Stoxx 50 (Eur) 3294.38 3320.09
S&P/ASX 200 6057.90 6032.70 OMXC Copenahgen 20
Denmark 1269.71 1273.27 FTSE MIB 19726.65 19886.88 Portugal PSI 20 4405.06 4429.02 Turkey BIST 100 116840.94 116315.98 Euronext 100 ID 992.87 998.31
S&P/ASX 200 Res 4482.10 4483.70 Egypt
EGX 30 10764.59 10750.10 Japan 2nd Section 6571.47 6505.61 PSI General 3210.51 3227.77 UAE Abu Dhabi General Index 4311.72 4285.06 FTSE 4Good Global ($) 7897.13 7907.90
Austria ATX 2272.78 2288.33 Estonia
OMX Tallinn 1236.69 1229.93 Nikkei 225 22306.48 22145.96 Romania BET Index 8668.05 8662.95 UK FT 30 2287.20 2322.20 FTSE All World ($) 351.13 350.86
Belgium BEL 20 3393.25 3402.45 Finland
OMX Helsinki General 9195.36 9239.28 S&P Topix 150 1293.27 1285.50 Russia Micex Index 2801.66 2788.79 FTSE 100 6157.30 6240.36 FTSE E300 1424.15 1435.65
BEL Mid 7560.23 7552.49 France
CAC 40 5007.14 5049.38 Topix 1552.33 1542.76 RTX 1235.18 1248.28 FTSE 4Good UK 5681.35 5749.71 FTSE Eurotop 100 2731.29 2756.94
Brazil IBovespa 96764.85 96234.96 SBF 120 3943.47 3973.23 Jordan Amman SE 1589.64 1598.38 Saudi-Arabia TADAWUL All Share Index 7312.24 7253.33 FTSE All Share 3412.28 3451.45 FTSE Global 100 ($) 2074.86 2076.93
Canada S&P/TSX 60 939.35 Germany
940.86 M-DAX 26600.49 26627.46 Kenya NSE 20 1945.64 1942.12 Singapore FTSE Straits Times 2652.94 2636.69 FTSE techMARK 100 5341.19 5346.76 FTSE Gold Min ($) 2440.97 2462.13
S&P/TSX Comp 15596.75 15622.40 TecDAX 3003.45 2999.65 Kuwait KSX Market Index 6633.44 6603.51 Slovakia SAX 331.12 336.86 USA DJ Composite 8344.08 8305.59 FTSE Latibex Top (Eur) 4440.00 4432.20
S&P/TSX Div Met & Min 418.94 401.55 XETRA Dax 12528.18 12608.46 Latvia OMX Riga 1053.29 1051.12 Slovenia SBI TOP 873.85 - DJ Industrial 25827.36 25734.97 FTSE Multinationals ($) 2226.09 2207.25
Chile S&P/CLX IGPA Gen 21150.44 Greece
20996.17 Athens Gen 658.55 662.00 Lithuania OMX Vilnius 742.90 742.07 South Africa FTSE/JSE All Share 54521.90 54617.19 DJ Transport 9235.70 9153.01 FTSE World ($) 623.01 623.09
China FTSE A200 11652.67 11425.58 FTSE/ASE 20 1595.31 1603.12 Luxembourg LuxX 993.33 987.81 FTSE/JSE Res 20 50138.02 50768.18 DJ Utilities 786.89 785.15 FTSEurofirst 100 (Eur) 3703.88 3742.30
FTSE B35 9000.71 Hong Kong
8988.96 Hang Seng 25373.12 25124.19 Malaysia FTSE Bursa KLCI 1552.65 1536.28 FTSE/JSE Top 40 50179.89 50309.77 Nasdaq 100 10341.89 10279.25 FTSEurofirst 80 (Eur) 4472.93 4507.99
Shanghai A 3304.72 3239.49 HS China Enterprise 10243.29 10056.86 Mexico IPC 37950.00 37894.08 South Korea Kospi 2152.41 2135.37 Nasdaq Cmp 10207.63 10154.63 MSCI ACWI Fr ($) 532.14 527.28
Shanghai B 224.67 219.50 HSCC Red Chip 4065.05 3995.66 Morocco MASI 10203.83 10211.41 Kospi 200 285.89 283.86 NYSE Comp 11991.52 11901.55 MSCI All World ($) 2227.65 2211.27
Shanghai Comp 3152.81 3090.57
Hungary Bux 35931.52 36222.58 Netherlands AEX 568.63 570.75 Spain IBEX 35 7403.50 7498.60 S&P 500 3130.01 3115.86 MSCI Europe (Eur) 1497.61 1470.41
Shenzhen A 2136.91 2109.85
India BSE Sensex 36021.42 35843.70 AEX All Share 816.45 817.74 Sri Lanka CSE All Share 5050.90 5109.04 Wilshire 5000 31876.75 31739.10 MSCI Pacific ($) 2558.50 2537.99
Shenzhen B 899.07 892.23 Nifty 500 8696.25 8647.85 New Zealand NZX 50 11558.70 11502.52 Sweden OMX Stockholm 30 1695.26 1703.82 Venezuela IBC 313413.25 317726.00 S&P Euro (Eur) 1493.62 1503.51
Colombia COLCAP 1118.97 1109.91
Indonesia Jakarta Comp 4973.79 4966.78 Nigeria SE All Share 24374.40 24479.22 OMX Stockholm AS 661.29 662.70 Vietnam VNI 847.61 842.38 S&P Europe 350 (Eur) 1459.08 1471.24
Croatia CROBEX 2013.05 Ireland
2011.29 ISEQ Overall 6030.06 6097.24 Norway Oslo All Share 876.38 883.41 Switzerland SMI Index 10125.84 10187.56 S&P Global 1200 ($) 2470.72 2470.75
Israel Tel Aviv 125 1384.15 1361.91 Pakistan KSE 100 35051.38 34978.18 Stoxx 50 (Eur) 3024.18 3055.31
(c) Closed. (u) Unavaliable. † Correction. ♥ Subject to official recalculation. For more index coverage please see www.ft.com/worldindices. A fuller version of this table is available on the ft.com research data archive.

STOCK MARKET: BIGGEST MOVERS UK MARKET WINNERS AND LOSERS

AMERICA LONDON EURO MARKETS TOKYO Jul 03 %Chg %Chg Jul 03 %Chg %Chg Jul 03 %Chg %Chg Jul 03 %Chg %Chg
ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's ACTIVE STOCKS stock close Day's FTSE 100 price(p) week ytd FTSE 250 price(p) week ytd FTSE SmallCap price(p) week ytd Industry Sectors price(p) week ytd
traded m's price change traded m's price change traded m's price change traded m's price change Winners Winners Winners Winners
Amazon.com 190.6 2890.30 11.60 Tesco 337.4 221.50 -0.30 Sap Se O.n. 179.6 127.58 -0.08 Softbank . 1380.5 5778.00 148.00 Whitbread 2387.00 8.7 -43.3 Energean 609.00 37.3 -34.4 Amigo Holdings 13.72 118.1 -80.6 Index - Technology Hardware & Equipment 1987.57 9.1 0.0
Apple 103.8 364.11 0.00 Hsbc Holdings 105.2 383.50 -5.60 Allianz Se Na O.n. 166.9 184.14 -1.96 Tokyo Electron 437.9 28720.00 790.00 Associated British Foods 2027.00 6.8 -21.4 Drax 270.00 21.0 -13.5 Cmc Markets 339.00 24.2 129.7 Food Producers 6716.18 3.6 -
Boeing 75.6 180.81 0.49 Sse 91.5 1360.00 -11.50 Intesa Sanpaolo 159.7 1.75 -0.01 Toyota Motor 259.9 6761.00 -16.00 Smiths 1385.50 6.6 -19.7 Spirent Communications 252.00 9.3 2.0 Discoverie 580.00 16.2 3.2 Construction & Materials 6337.66 3.3 -
Facebook 71.5 233.42 -4.13 National Grid 64.5 922.20 -17.00 Axa 145.2 18.90 -0.19 Fast Retailing Co., 256.5 61540.00 230.00 Burberry 1635.00 6.5 -25.7 Syncona 253.00 9.1 14.0 Indivior 91.00 15.5 130.4 Industrial Transportation 1823.33 3.3 -
Microsoft 60.5 206.26 1.56 Bp 59.7 307.55 -5.70 Asml Holding 130.4 333.95 1.20 Sony 232.9 7511.00 11.00 Scottish Mortgage Investment Trust 854.00 5.2 45.7 Pphe Hotel 1155.00 9.0 -39.8 Batm Advanced Communications Ld 115.00 15.5 197.2 Mobile Telecommunications 2942.62 3.1 -
Alphabet 42.1 1469.93 27.93 Royal Dutch Shell 59.4 1299.00 -13.20 Linde Eo 0,001 129.1 195.45 -1.25 Mitsubishi Ufj Fin,. 178.3 422.00 0.90 Compass 1152.50 5.1 -39.4 B&m Eur Value Retail S.a. 426.70 8.7 5.2 Halfords 173.40 14.5 1.8 Health Care Equip.& Services 6682.98 3.0 -
Nvidia 35.0 384.49 3.29 Rolls-royce Holdings 58.7 263.20 -29.30 Unicredit 129.0 8.42 -0.15 Takeda Pharmaceutical 166.1 3766.00 -42.00 Jd Sports Fashion 652.60 4.3 -21.5 Wizz Air Holdings 3408.00 8.5 -14.6 Bmo Real Estate Investments 60.00 14.1 -29.1 Travel & Leisure 6322.50 2.2 -39.1
Netflix 30.3 476.89 -8.75 Rio Tinto 57.9 4458.50 -86.50 Bnp Paribas Act.a 123.8 36.28 -0.33 Advantest 118.1 6330.00 130.00 Land Securities 578.00 4.3 -41.9 Telecom Plus 1492.00 8.1 -1.8 Premier Foods 76.80 13.8 101.8 Equity Investment Instruments 10785.21 1.7 -1.6
Alphabet 27.2 1464.70 26.66 Int Consolidated Airlines S.a. 56.4 226.70 -5.00 Total 118.5 34.64 -0.21 Sumitomo Mitsui Fin,. 117.3 3064.00 12.00 Barclays 115.72 4.3 -37.5 Avon Rubber 3330.00 7.9 60.1 Restaurant 65.40 12.9 -60.7 General Retailers 2083.97 1.7 -
Jpmorgan Chase & Co 25.8 92.66 0.30 Astrazeneca 56.1 8459.00 -135.00 Lvmh 117.9 396.70 -5.15 M3,. 110.3 4675.00 200.00 M&g 168.25 4.2 -31.0 Easyjet 699.60 7.4 -51.1 Newriver Reit 67.00 10.7 -66.7 Support Services 8894.35 1.5 -6.0
Crh 2865.00 4.2 -7.6 Tui Ag 388.40 7.3 -60.8 Menzies(john) 135.20 10.6 -71.2 Real Estate Investment Trusts 2549.04 1.3 -
BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's BIGGEST MOVERS Close Day's Day's
Fresnillo 855.60 3.7 32.9 Grainger 298.40 7.3 -5.0 Bmo Private Equity Trust 347.00 10.5 -7.8 Banks 2299.47 1.1 -
price change chng% price change chng% price change chng% price change chng%
Ups Ups Ups Ups Losers Losers Losers Losers
Noble Energy 9.55 0.69 7.79 Essentra 314.20 21.20 7.24 Edf 8.93 0.48 5.63 Cyberagent,. 5600.00 260.00 4.87 Smith (ds) 291.40 -10.7 -24.6 Petropavlovsk 26.05 -15.7 105.1 Intu Properties 1.78 -59.6 -94.6 Food & Drug Retailers 4047.05 -3.4 -3.7
Akamai 113.12 6.79 6.39 Puretech Health 274.00 11.00 4.18 Lufthansa Ag Vna O.n. 8.95 0.10 1.18 M3,. 4675.00 200.00 4.47 Rolls-royce Holdings 263.20 -7.6 -61.4 John Laing 309.40 -15.4 -20.2 Petropavlovsk 26.05 -15.7 105.1 Personal Goods 36254.07 -3.2 -5.0
Technipfmc 7.28 0.37 5.35 Liontrust Asset Management 1430.00 50.00 3.62 Heidelbergcement Ag O.n. 48.11 0.52 1.09 Yamato Holdings Co., 2536.00 90.00 3.68 Hargreaves Lansdown 1563.50 -5.9 -20.3 Bmo Commercial Property Trust 61.90 -10.3 -46.6 Capital & Regional 84.00 -13.4 -67.6 Industrial Metals 2903.93 -3.2 -
Diamondback Energy 41.56 1.96 4.95 Spirent Communications 252.00 8.50 3.49 Gbl 75.76 0.72 0.96 Dainippon Screen Mfg.co., 5120.00 170.00 3.43 Sainsbury (j) 197.25 -5.0 -15.0 Savills 765.50 -10.2 -33.1 Kier 78.00 -13.4 -17.7 Gas Water & Multiutilities 5032.10 -2.9 -6.6
Wynn Resorts 77.32 3.53 4.78 Clarkson 2375.00 75.00 3.26 Stmicroelectronics 24.23 0.22 0.92 Kyowa Hakko Kirin Co., 2809.00 84.00 3.08 National Grid 922.20 -4.6 -3.0 Go-ahead 814.00 -10.1 -63.1 Petra Diamonds 1.89 -12.9 -78.6 Fixed Line Telecommunication 1379.47 -1.9 -
Unilever 4318.00 -4.4 -0.7 Workspace 628.00 -8.3 -47.6 Stobart Ld 31.40 -12.8 -70.4 Tobacco 31643.43 -1.8 -8.3
Downs Downs Downs Downs
Coca-cola Hbc Ag 1972.50 -4.1 -23.9 National Express 181.60 -7.8 -61.7 Riverstone Energy 320.00 -12.3 -25.8 Automobiles & Parts 2754.63 -1.2 -
Dish Network 33.06 -1.57 -4.52 Rolls-royce Holdings 263.20 -29.30 -10.02 Seadrill 0.38 -0.02 -4.57 J.front Retailing Co., 668.00 -28.00 -4.02
Tesco 221.50 -4.0 -13.4 Redrow 427.20 -7.6 -44.3 Alfa Fin Software Holdings 62.10 -11.0 -48.1 Media 7252.37 -1.2 -
Carnival 15.88 -0.48 -2.93 Cineworld 60.16 -4.42 -6.84 Casino Guichard 31.71 -1.51 -4.55 Credit Saison Co., 1152.00 -48.00 -4.00
Taylor Wimpey 137.00 -3.9 -30.5 Crest Nicholson Holdings 198.00 -7.6 -54.8 Forterra 176.00 -9.7 -50.7 Aerospace & Defense 3275.20 -1.1 -
Norwegian Cruise Line Holdings Ltd 15.97 -0.45 -2.74 Virgin Money Uk 93.00 -5.76 -5.83 B. Sabadell 0.32 -0.01 -3.59 Takashimaya , 851.00 -29.00 -3.30
Morrison (wm) Supermarkets 185.35 -3.4 -8.4 Aston Martin Lagonda Global Holdings 47.20 -7.3 -73.2 Premier Oil 46.97 -9.3 -52.8 Oil & Gas Producers 4793.29 -1.0 -
Ventas 37.29 -1.03 -2.69 Aston Martin Lagonda Global Holdings 47.20 -2.54 -5.11 Telefonica 4.15 -0.12 -2.79 Tokyo Electric Power ,orporated 316.00 -10.00 -3.07
Flutter Entertainment 10725.00 -2.9 15.4 Vistry 681.00 -6.7 -48.8 Standard Life Investments Property ome Trust Ld 60.20 -8.8 -34.4 Oil Equipment & Services 4113.99 -1.0 -
Royal Caribbean Cruises Ltd 49.51 -1.32 -2.60 Next 4798.00 -232.00 -4.61 Repsol 7.82 -0.22 -2.74 Isetan Mitsukoshi Holdings 595.00 -16.00 -2.62
Smurfit Kappa 2560.00 -2.9 -13.0 Just 48.90 -6.7 -41.1 Headlam 264.00 -8.0 -51.1 Beverages 21100.00 -0.9 -
Based on the constituents of the S&P500 Based on the constituents of the FTSE 350 index Based on the constituents of the FTSEurofirst 300 Eurozone index Based on the constituents of the Nikkei 225 index
Based on last week's performance. †Price at suspension.

CURRENCIES
DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND
Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's
Jul 03 Currency Mid Change Mid Change Mid Change Jul 03 Currency Mid Change Mid Change Mid Change Jul 03 Currency Mid Change Mid Change Mid Change Jul 03 Currency Mid Change Mid Change Mid Change
Argentina Argentine Peso 70.6352 0.0595 79.4118 0.1658 88.0639 0.0841 Indonesia Indonesian Rupiah 14535.0000 159.0000 16341.0174 198.8892 18121.4244 200.2453 Poland Polish Zloty 3.9704 -0.0048 4.4637 0.0001 4.9500 -0.0055 ..Three Month 0.8022 -0.0001 0.9016 0.0010 - -
Australia Australian Dollar 1.4412 -0.0060 1.6203 -0.0047 1.7968 -0.0072 Israel Israeli Shekel 3.4358 -0.0062 3.8627 -0.0021 4.2836 -0.0072 Romania Romanian Leu 4.3027 -0.0052 4.8373 0.0001 5.3643 -0.0059 ..One Year 0.8023 -0.0001 0.9012 0.0010 - -
Bahrain Bahrainin Dinar 0.3771 0.0001 0.4240 0.0006 0.4701 0.0001 Japan Japanese Yen 107.5300 -0.0950 120.8909 0.0440 134.0623 -0.1034 Russia Russian Ruble 71.5732 1.1331 80.4663 1.3726 89.2333 1.4226 United States United States Dollar - - 1.1243 0.0014 1.2467 0.0001
Bolivia Bolivian Boliviano 6.9100 - 7.7686 0.0097 8.6150 0.0010 ..One Month 107.5300 -0.0951 120.8909 0.0441 134.0622 -0.1034 Saudi Arabia Saudi Riyal 3.7509 -0.0004 4.2170 0.0048 4.6764 0.0000 ..One Month - - 1.1242 -0.1224 1.2468 0.0001
Brazil Brazilian Real 5.3343 -0.0044 5.9971 0.0026 6.6505 -0.0047 ..Three Month 107.5299 -0.0953 120.8910 0.0442 134.0622 -0.1036 Singapore Singapore Dollar 1.3943 -0.0007 1.5675 0.0012 1.7383 -0.0007 ..Three Month - - 1.1240 -0.1224 1.2468 0.0001
Canada Canadian Dollar 1.3577 -0.0030 1.5264 -0.0015 1.6927 -0.0036 ..One Year 107.5293 -0.0964 120.8911 0.0445 134.0622 -0.1040 South Africa South African Rand 17.0569 0.0881 19.1763 0.1229 21.2656 0.1123 ..One Year - - 1.1233 -0.1224 1.2470 0.0002
Chile Chilean Peso 799.1000 -4.2400 898.3901 -3.6412 996.2722 -5.1738 Kenya Kenyan Shilling 106.5500 -0.1500 119.7891 -0.0191 132.8405 -0.1721 South Korea South Korean Won 1198.6500 -1.3000 1347.5852 0.2199 1494.4084 -1.4530 Venezuela Venezuelan Bolivar Fuerte - - - - - -
China Chinese Yuan 7.0673 0.0017 7.9454 0.0118 8.8111 0.0031 Kuwait Kuwaiti Dinar 0.3079 - 0.3462 0.0004 0.3839 0.0000 Sweden Swedish Krona 9.3188 -0.0086 10.4767 0.0035 11.6181 -0.0094 Vietnam Vietnamese Dong 23201.0000 -2.0000 26083.7811 30.2411 28925.7274 0.7530
Colombia Colombian Peso 3645.5900 -19.6400 4098.5639 -16.9453 4545.1137 -23.9734 Malaysia Malaysian Ringgit 4.2870 0.0010 4.8197 0.0071 5.3448 0.0018 Switzerland Swiss Franc 0.9450 -0.0008 1.0625 0.0004 1.1782 -0.0009 European Union Euro 0.8895 -0.0011 - - 1.1090 -0.0013
Costa Rica Costa Rican Colon 581.6350 -1.1150 653.9045 -0.4370 725.1493 -1.3086 Mexico Mexican Peso 22.4435 -0.1040 25.2322 -0.0853 27.9813 -0.1265 Taiwan New Taiwan Dollar 29.4420 -0.0200 33.1002 0.0188 36.7066 -0.0208 ..One Month 0.8894 -0.0011 - - 1.1089 -0.0013
Czech Republic Czech Koruna 23.7252 0.0444 26.6731 0.0830 29.5792 0.0586 New Zealand New Zealand Dollar 1.5313 -0.0058 1.7215 -0.0043 1.9091 -0.0070 Thailand Thai Baht 31.1275 0.0525 34.9952 0.1026 38.8080 0.0698 ..Three Month 0.8892 -0.0011 - - 1.1088 -0.0013
Denmark Danish Krone 6.6285 -0.0082 7.4521 0.0001 8.2640 -0.0093 Nigeria Nigerian Naira 386.5800 - 434.6135 0.5417 481.9659 0.0541 Tunisia Tunisian Dinar 2.8552 0.0026 3.2099 0.0070 3.5596 0.0037 ..One Year 0.8885 -0.0011 - - 1.1084 -0.0013
Egypt Egyptian Pound 16.1202 0.0299 18.1232 0.0562 20.0977 0.0395 Norway Norwegian Krone 9.4912 -0.0508 10.6705 -0.0438 11.8331 -0.0621 Turkey Turkish Lira 6.8700 0.0160 7.7236 0.0276 8.5651 0.0209
Hong Kong Hong Kong Dollar 7.7500 -0.0001 8.7130 0.0107 9.6623 0.0009 Pakistan Pakistani Rupee 166.2000 -0.6000 186.8507 -0.4408 207.2087 -0.7247 United Arab Emirates UAE Dirham 3.6732 - 4.1295 0.0051 4.5795 0.0005
Hungary Hungarian Forint 314.1473 1.0778 353.1808 1.6504 391.6609 1.3875 Peru Peruvian Nuevo Sol 3.5227 0.0057 3.9604 0.0113 4.3919 0.0075 United Kingdom Pound Sterling 0.8021 -0.0001 0.9018 0.0010 - -
India Indian Rupee 74.6375 -0.3775 83.9114 -0.3193 93.0538 -0.4602 Philippines Philippine Peso 49.5780 -0.1960 55.7382 -0.1506 61.8110 -0.2374 ..One Month 0.8021 -0.0001 0.9017 0.0010 - -
Rates are derived from WM Reuters Spot Rates and MorningStar (latest rates at time of production). Some values are rounded. Currency redenominated by 1000. The exchange rates printed in this table are also available at www.FT.com/marketsdata
UK SERIES
FTSE ACTUARIES SHARE INDICES www.ft.com/equities FT 30 INDEX FTSE SECTORS: LEADERS & LAGGARDS FTSE 100 SUMMARY
Produced in conjunction with the Institute and Faculty of Actuaries Jul 03 Jul 02 Jul 01 Jun 30 Jun 29 Yr Ago High Low Year to date percentage changes Closing Week's Closing Week's
£ Strlg Day's Euro £ Strlg £ Strlg Year Div P/E X/D Total FT 30 2287.20 2322.20 2284.50 2287.70 2297.30 0.00 3314.70 1337.80 Leisure Goods 27.90 Construct & Material -11.19 Media -20.51 FTSE 100 Price Change FTSE 100 Price Change
Jul 03 chge% Index Jul 02 Jul 01 ago yield% Cover ratio adj Return FT 30 Div Yield - - - - - 0.00 3.93 2.74 Tech Hardware & Eq 16.16 Mobile Telecomms -11.88 Telecommunications -20.52 3I Group PLC 833.40 10.00 Kingfisher PLC 220.50 5.80
FTSE 100 (100) 6157.30 -1.33 5321.60 6240.36 6157.96 7603.58 4.82 1.44 14.41 114.49 5796.26 P/E Ratio net - - - - - 0.00 19.44 14.26 Pharmace & Biotech 2.32 Technology -12.22 FTSE 250 Index -20.94 Admiral Group PLC 2278 -35.00 Land Securities Group PLC 578.00 23.80
FTSE 250 (251) 17302.03 -0.38 14953.70 17367.86 17189.43 19797.61 3.85 1.75 14.81 159.72 13593.29 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 18/02/1900Base Date: 1/7/35 Health Care -0.24 Industrial Eng -13.62 Real Est Invest & Se -22.85 Anglo American PLC 1835 -4.60 Legal & General Group PLC 219.40 3.10
FTSE 250 ex Inv Co (184) 17533.40 -0.45 15153.67 17612.22 17404.32 20812.31 4.26 1.46 16.06 131.64 14058.37 FT 30 hourly changes Electronic & Elec Eq -0.96 Industrials -13.82 Life Insurance -22.92 Antofagasta PLC 925.20 10.40 Lloyds Banking Group PLC 31.03 -0.06
FTSE 350 (351) 3450.30 -1.17 2982.00 3491.25 3446.85 4207.03 4.66 1.48 14.47 58.71 6478.37 8 9 10 11 12 13 14 15 16 High Low Equity Invest Instr -3.56 Software & Comp Serv -14.29 Industrial Metals & -23.15 Ashtead Group PLC 2737 37.00 London Stock Exchange Group PLC 8466 108.00
FTSE 350 ex Investment Trusts (283) 3375.67 -1.23 2917.51 3417.73 3373.57 4159.59 4.78 1.43 14.61 58.17 3270.17 2322.2 2314.8 2310.2 2348.3 2399.1 2395.8 2394.3 2414 2426.7 2439.2 2366.1 Food & Drug Retailer -3.61 FTSE SmallCap Index -14.95 Financials -23.77 Associated British Foods PLC 2027 128.50 M&G PLC 168.25 6.85
FTSE 350 Higher Yield (153) 2710.09 -1.37 2342.26 2747.74 2714.19 3718.33 7.10 1.30 10.85 65.43 5558.28 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Household Goods & Ho -4.92 Financial Services -15.75 Consumer Services -24.51 Astrazeneca PLC 8459 3.00 Melrose Industries PLC 117.00 2.85
FTSE 350 Lower Yield (198) 3987.83 -0.97 3446.58 4026.76 3973.41 4340.40 2.11 2.13 22.19 43.38 4682.58 Personal Goods -5.43 Forestry & Paper -16.16 Real Est Invest & Tr -24.59 Auto Trader Group PLC 522.20 -10.80 Mondi PLC 1486 -7.00
FTSE SmallCap (261) 5060.92 0.03 4374.02 5059.59 5005.57 5630.64 4.73 0.61 34.69 63.67 7942.44 Electricity -6.19 Chemicals -16.57 Industrial Transport -28.50
FTSE SmallCap ex Inv Co (142) 3871.57 0.34 3346.10 3858.62 3827.72 4515.28 6.14 0.53 30.78 36.50 6372.83 FX: EFFECTIVE INDICES Utilities -6.63 Food Producers -16.64 Aerospace & Defense -33.77
Avast PLC 538.50 7.00 Morrison (Wm) Supermarkets PLC 185.35 -6.50
Aveva Group PLC 4101 -25.00 National Grid PLC 922.20 -44.20
FTSE All-Share (612) 3412.28 -1.13 2949.15 3451.45 3407.78 4147.97 4.66 1.45 14.75 57.53 6472.48
FTSE All-Share ex Inv Co (425) 3308.50 -1.20 2859.45 3348.84 3305.84 4072.52 4.80 1.41 14.75 56.54 3255.51 Jul 02 Jul 01 Mnth Ago Jul 03 Jul 02 Mnth Ago Gas Water & Multi -6.76 Beverages -16.68 Travel & Leisure -38.57 Aviva PLC 273.50 4.50 Next PLC 4798 -2.00
Support Services -7.23 NON FINANCIALS Index -16.81 Banks -39.26 Bae Systems PLC 482.20 -3.00 Ocado Group PLC 2000 -33.00
FTSE All-Share ex Multinationals (538) 1025.28 -0.65 734.43 1031.97 1018.26 1167.36 4.12 1.24 19.49 12.22 2030.03 Australia - - - Sweden - - - Mining -8.23 Nonlife Insurance -18.30 Fixed Line Telecomms -39.50 Barclays PLC 115.72 4.74 Pearson PLC 574.00 12.00
FTSE Fledgling (95) 8203.59 0.04 7090.15 8199.97 8186.90 9557.60 4.94 1.33 15.26 129.37 16715.97 Canada - - - Switzerland - - - Tobacco -8.24 FTSE 100 Index -18.36 Oil & Gas Producers -40.42 Barratt Developments PLC 490.30 -11.30 Pennon Group PLC 1102 -20.00
FTSE Fledgling ex Inv Co (45) 9475.76 0.15 8189.66 9461.36 9428.97 11457.40 7.11 1.67 8.45 105.50 18908.48 Denmark - - - UK 76.74 76.59 77.32 Consumer Goods -9.37 FTSE All{HY-}Share Index -18.69 Oil & Gas -40.58 Berkeley Group Holdings (The) PLC 4163 58.00 Persimmon PLC 2259 -24.00
FTSE All-Small (356) 3502.51 0.03 3027.13 3501.56 3465.85 3907.13 4.74 0.65 32.51 44.71 7053.09 Japan - - - USA - - - Basic Materials -9.58 General Retailers -18.77 Automobiles & Parts -49.64 Bhp Group PLC 1636.4 -2.60 Phoenix Group Holdings PLC 634.40 -2.40
FTSE All-Small ex Inv Co (187) 2888.88 0.33 2496.78 2879.42 2856.86 3371.45 6.18 0.58 27.93 27.39 6024.08 New Zealand - - - Euro - - - Health Care Eq & Srv -20.30 Oil Equipment & Serv -50.46 BP PLC 307.55 2.95 Polymetal International PLC 1569 19.50
FTSE AIM All-Share (728) 893.22 0.15 771.98 891.86 883.14 917.29 1.48 1.39 48.80 3.55 1021.59 Norway - - -
British American Tobacco PLC 3060.5 -49.00 Prudential PLC 1204 14.50
FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. British Land Company PLC 389.00 5.50 Reckitt Benckiser Group PLC 7446 176.00
Oil & Gas (11) 4963.54 -1.31 4289.86 5029.34 4983.14 9705.46 9.66 1.41 7.33 206.26 5455.42 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk Bt Group PLC 111.35 -3.20 Relx PLC 1848.5 -44.50
Oil & Gas Producers (8) 4822.80 -1.32 4168.22 4887.23 4842.70 9403.76 9.62 1.42 7.30 202.92 5494.58 Bunzl PLC 2190 45.00 Rentokil Initial PLC 515.20 4.40
Oil Equipment Services & Distribution (3) 4295.75 -0.51 3712.71 4317.66 4253.19 10228.37 12.88 0.74 10.55 6.80 3698.97 FTSE GLOBAL EQUITY INDEX SERIES Burberry Group PLC 1635 100.50 Rightmove PLC 552.60 12.00
Basic Materials (22) 5739.59 -1.57 4960.58 5831.13 5714.41 6885.53 6.01 2.20 7.58 143.43 6777.53 Coca-Cola Hbc AG 1972.5 -84.50 Rio Tinto PLC 4458.5 -75.00
Chemicals (7) 11839.17 -1.20 10232.29 11983.50 11845.73 14828.04 2.52 2.95 13.44 139.21 11312.10 Jul 3 No of US $ Day Mth YTD Total
YTD Gr Div Jul 3 No of US $ Day Mth YTD Total YTD Gr Div Compass Group PLC 1152.5 56.00 Rolls-Royce Holdings PLC 263.20 -21.80
Forestry & Paper (1) 18254.02 0.10 15776.48 18235.60 18389.15 22375.30 1.70 5.96 9.90 0.00 21598.49 Regions & countries stocks indices % % % retn
% Yield Sectors stocks indices % % % retn % Yield Crh PLC 2865 116.00 Royal Bank Of Scotland Group PLC 121.85 3.35
Industrial Metals & Mining (2) 3128.00 -2.34 2703.45 3202.83 3083.12 6642.74 17.66 1.05 5.41 302.71 4042.56 FTSE Global All Cap 8872 594.48 0.9 2.1 -6.6
-5.4 908.53
2.4 Oil Equipment & Services 32 177.47 0.7 0.7 -33.7 292.41 -31.8 5.9 Croda International PLC 5196 -28.00 Royal Dutch Shell PLC 1299 -20.80
Mining (12) 16682.91 -1.68 14418.61 16968.00 16593.77 19681.73 6.40 2.16 7.22 444.07 10401.27 FTSE Global All Cap 7079 462.39 0.3 7.3 -0.3
0.2 624.68
2.5 Basic Materials 349 468.98 1.2 1.2 -8.8 787.47 -7.0 3.5 Dcc PLC 6786 86.00 Royal Dutch Shell PLC 1234.4 -23.80
FTSE Global Large Cap 1770 539.64 1.0 2.6 -4.9
-3.6 849.23
2.5 Chemicals 159 683.94 1.5 1.5 -8.8 1140.39 -7.1 3.1 Diageo PLC 2690 -10.00 Rsa Insurance Group PLC 413.50 -0.40
Industrials (100) 5166.00 -0.67 4464.84 5200.85 5159.30 5548.27 2.67 1.43 26.13 24.59 5686.57
Construction & Materials (15) 6559.76 0.07 5669.43 6555.36 6434.90 6352.66 3.01 0.51 64.78 95.82 7536.14 FTSE Global Mid Cap 2176 736.03 0.8 0.5 -11.2
-10.3 1058.56
2.3 Forestry & Paper 20 227.71 0.4 0.4 -18.1 428.30 -16.4 3.5 Evraz PLC 282.40 -7.60 Sage Group PLC 665.60 -3.40
Aerospace & Defense (9) 3453.42 -2.21 2984.71 3531.32 3498.26 4900.39 3.59 1.03 27.02 2.61 3918.01 FTSE Global Small Cap 4926 763.93 0.6 1.1 -11.7
-10.8 1057.30
2.1 Industrial Metals & Mining 92 297.80 1.6 1.6 -21.2 501.28 -20.0 4.1 Experian PLC 2893 76.00 Sainsbury (J) PLC 197.25 -10.35
General Industrials (7) 4234.34 -0.99 3659.63 4276.83 4330.77 4861.17 3.48 1.09 26.37 0.00 5215.27 FTSE All-World 3946 350.86 0.9 2.2 -6.0
-4.8 567.41
2.5 Mining 78 724.99 0.7 0.7 -0.5 1242.33 1.7 4.0 Ferguson PLC 6516 160.00 Schroders PLC 2970 44.00
Electronic & Electrical Equipment (10)10133.58 -1.35 8758.19 10272.11 10205.41 9891.01 1.36 2.13 34.54 0.00 9646.81 FTSE World 2593 623.09 0.8 1.9 -6.2
-5.0 1352.45
2.5 Industrials 747 406.68 0.8 0.8 -9.4 622.11 -8.4 2.2 Flutter Entertainment PLC 10725 -320.00 Scottish Mortgage Investment Trust PLC 854.00 42.00
Industrial Engineering (13) 12736.70 0.04 11008.00 12731.63 12618.93 14584.30 2.69 1.69 21.94 40.37 16489.55 FTSE Global All Cap ex UNITED KINGDOM In 8569 627.18 0.9 2.2 -5.7
-4.6 941.51
2.3 Construction & Materials 147 494.44 1.7 1.7 -10.8 793.92 -9.7 2.4 Fresnillo PLC 855.60 30.80 Segro PLC 913.40 18.20
Industrial Transportation (6) 2812.75 0.05 2430.99 2811.38 2791.42 3645.68 8.63 0.68 17.14 0.00 2845.47 FTSE Global All Cap ex USA 7091 463.13 1.5 2.7 -10.7
-9.3 771.51
3.2 Aerospace & Defense 37 620.69 0.8 0.8 -30.7 934.79 -30.1 2.7 Glaxosmithkline PLC 1625.8 -21.20 Severn Trent PLC 2454 -12.00
Support Services (40) 8459.29 -0.42 7311.15 8495.35 8406.22 8428.32 2.02 2.19 22.65 44.99 9343.06 FTSE Global All Cap ex JAPAN 7522 613.57 1.0 2.4 -6.4
-5.2 946.63
2.4 General Industrials 67 192.81 1.3 1.3 -15.4 322.69 -14.1 2.9 Glencore PLC 169.68 2.94 Smith & Nephew PLC 1577 54.50
FTSE Global All Cap ex Eurozone 8221 624.82 0.8 2.0 -6.1
-5.0 935.07
2.3 Electronic & Electrical Equipment 141 480.65 0.2 0.2 -5.6 667.05 -4.7 1.8 Gvc Holdings PLC 776.80 13.20 Smith (Ds) PLC 291.40 -34.90
Consumer Goods (42) 18249.20 -1.86 15772.32 18594.73 18371.83 20101.83 4.40 1.71 13.29 272.34 15149.19
FTSE Developed 2169 571.31 0.8 1.8 -5.7
-4.5 880.42
2.4 Industrial Engineering 143 768.71 0.9 0.9 -7.3 1171.22 -6.0 2.4 Halma PLC 2276 -24.00 Smiths Group PLC 1385.5 85.50
Automobiles & Parts (2) 2768.75 -0.62 2392.96 2786.14 2811.02 6650.30 0.89 5.55 20.34 0.00 2833.03
FTSE Developed All Cap 5641 593.42 0.7 1.7 -6.4
-5.2 901.77
2.4 Industrial Transportation 125 705.28 0.9 0.9 -6.9 1084.54 -5.9 2.4 Hargreaves Lansdown PLC 1563.5 -98.00 Smurfit Kappa Group PLC 2560 -76.00
Beverages (6) 21156.80 -1.73 18285.28 21528.21 21224.99 27567.08 2.69 2.14 17.38 230.59 16014.72
FTSE Developed Large Cap 881 538.50 0.8 2.2 -4.5
-3.3 844.46
2.5 Support Services 87 518.33 0.3 0.3 2.7 749.10 3.5 1.4 Hikma Pharmaceuticals PLC 2196 -57.00 Spirax-Sarco Engineering PLC 9834 -186.00
Food Producers (10) 6730.63 -0.57 5817.11 6768.98 6615.87 7627.09 2.67 2.08 18.03 57.48 6218.55
FTSE Developed Europe Large Cap 232 339.10 1.7 3.0 -11.7
-9.9 629.28
3.7 Consumer Goods 535 478.04 1.4 1.4 -6.3 764.33 -5.1 2.7 Homeserve PLC 1287 -11.00 Sse PLC 1360 -3.50
Household Goods & Home Construction (14)14314.81 -1.62 12371.92 14551.20 14324.80 13546.02 3.49 2.18 13.17 141.01 11392.32
FTSE Developed Europe Mid Cap 356 549.13 1.4 1.0 -13.2
-12.1 891.26
3.1 Automobiles & Parts 126 355.73 3.2 3.2 -6.6 555.66 -5.4 3.1 HSBC Holdings PLC 383.50 3.25 St. James's Place PLC 948.60 3.00
Leisure Goods (2) 21270.16 -1.91 18383.25 21683.29 21148.65 13924.54 2.39 1.47 28.49 109.33 22054.22
FTSE Dev Europe Small Cap 697 739.35 1.0 0.7 -17.7
-16.6 1157.60
3.2 Beverages 67 612.10 0.9 0.9 -13.6 986.70 -12.5 2.7 Imperial Brands PLC 1486.5 -39.00 Standard Chartered PLC 435.00 12.40
Personal Goods (6) 31327.94 -2.30 27075.93 32065.31 31473.16 37001.12 3.25 2.69 11.42 447.31 23127.93
FTSE North America Large Cap 253 688.36 0.5 2.1 -1.2
-0.2 996.78
2.0 Food Producers 131 659.05 0.7 0.7 -3.4 1077.29 -1.8 2.4 Informa PLC 457.90 -9.20 Standard Life Aberdeen PLC 269.00 7.90
Tobacco (2) 31643.49 -2.12 27348.65 32329.99 32307.23 32527.26 7.78 1.11 11.59 785.33 24607.15
FTSE North America Mid Cap 411 856.13 0.5 0.2 -9.5
-8.7 1143.84
1.8 Household Goods & Home Construction 58 487.32 0.9 0.9 -3.8 773.86 -2.6 2.5 Intercontinental Hotels Group PLC 3712 86.00 Taylor Wimpey PLC 137.00 -5.55
Health Care (16) 12841.03 -1.35 11098.18 13017.00 12862.68 11575.50 3.33 0.98 30.60 247.69 11028.25
FTSE North America Small Cap 1305 848.78 0.4 0.7 -11.1
-10.4 1095.78
1.6 Leisure Goods 42 261.66 0.8 0.8 8.0 359.11 8.9 1.1 Intermediate Capital Group PLC 1273 -31.00 Tesco PLC 221.50 -9.20
Health Care Equipment & Services (7) 6735.14 -0.58 5821.01 6774.16 6729.84 7984.36 2.04 1.72 28.52 77.97 6165.77
FTSE North America 664 446.30 0.5 1.8 -2.7
-1.7 660.42
1.9 Personal Goods 98 848.36 1.5 1.5 -5.9 1254.21 -5.2 1.8 International Consolidated Airlines Group S.A. 226.70 4.90 Unilever PLC 4318 -201.00
Pharmaceuticals & Biotechnology (9) 18107.54 -1.43 15649.89 18370.01 18142.55 15810.23 3.46 0.94 30.82 363.15 13963.21
FTSE Developed ex North America 1505 242.50 1.3 1.9 -10.9
-9.4 435.42
3.3 Tobacco 13 842.97 0.4 0.4 -15.4 2060.47 -12.6 7.1 Intertek Group PLC 5420 -40.00 United Utilities Group PLC 902.20 -13.20
Consumer Services (82) 4289.09 -0.68 3706.95 4318.47 4265.93 5263.86 3.59 1.57 17.71 48.64 4367.98 FTSE Japan Large Cap 180 366.39 0.4 -1.1 -7.6
-6.4 509.24
2.5 Health Care 279 623.51 0.7 0.7 2.1 954.25 3.3 1.9
Food & Drug Retailers (5) 4204.08 -0.87 3633.48 4240.82 4258.66 4101.14 3.17 1.19 26.41 78.41 5283.63 Itv PLC 71.92 0.18 Vodafone Group PLC 129.64 4.40
FTSE Japan Mid Cap 327 549.40 -0.3 -3.5 -12.6
-11.5 725.11
2.3 Health Care Equipment & Services 96 1155.01 0.7 0.7 -1.5 1386.93 -1.0 1.0 Jd Sports Fashion PLC 652.60 27.00 Whitbread PLC 2387 192.00
General Retailers (25) 1956.23 -1.03 1690.72 1976.50 1936.44 2018.89 2.82 2.09 17.03 6.13 2441.95
FTSE Global wi JAPAN Small Cap 843 595.32 -0.7 -4.5 -14.4
-13.3 814.16
2.4 Pharmaceuticals & Biotechnology 183 425.96 0.7 0.7 3.8 691.75 5.5 2.4 Johnson Matthey PLC 2090 2.00 Wpp PLC 623.20 10.40
Media (17) 7381.50 -1.12 6379.64 7464.75 7402.47 9038.58 3.69 1.56 17.36 80.73 4942.92
FTSE Japan 507 152.71 0.3 -1.6 -8.6
-7.4 237.66
2.5 Consumer Services 450 567.47 0.7 0.7 1.7 792.03 2.4 1.3 Just Eat Takeaway.Com N.V. 8600 162.00
Travel & Leisure (35) 6215.36 0.05 5371.78 6212.29 6088.62 9287.38 4.18 1.53 15.65 79.44 6375.34
FTSE Asia Pacific Large Cap ex Japan 925 696.45 2.3 6.4 -4.2
-2.8 1194.05
2.8 Food & Drug Retailers 67 268.47 0.6 0.6 -9.0 402.55 -7.7 2.7
Telecommunications (6) 1806.75 -0.20 1561.52 1810.42 1785.36 2142.56 7.49 -0.46 -29.33 42.45 2441.78 FTSE Asia Pacific Mid Cap ex Japan 835 788.54 2.0 6.1 -8.9
-7.8 1295.47
3.1 General Retailers 147 1067.54 1.0 1.0 17.9 1433.61 18.4 0.8
Fixed Line Telecommunications (3) 1430.08 -1.34 1235.98 1449.51 1421.45 2432.70 12.47 1.27 6.32 0.00 1563.06
Mobile Telecommunications (3) 2938.16 0.15 2539.38 2933.68 2898.13 3021.57 5.95 -1.57 -10.72 90.67 3582.36
FTSE Asia Pacific Small Cap ex Japan
FTSE Asia Pacific Ex Japan
1788
1760
525.44
542.18
1.7
2.3
5.9
6.3
-3.3
-2.2
-4.6
-3.2
842.87
3.0 Media
987.33
2.8 Travel & Leisure
85 356.82
151 392.69
-0.5
0.7
-0.5 -7.1 501.47
0.7 -24.2 560.08 -23.5
-6.5 1.5
2.4
UK STOCK MARKET TRADING DATA
Utilities (8) 7209.56 -1.41 6231.03 7312.36 7498.19 6755.04 6.02 0.56 29.84 195.73 9845.55 FTSE Emerging All Cap 3231 722.66 2.2 6.0 -8.5
-7.2 1176.49
2.9 Telecommunication 96 143.10 0.9 0.9 -10.8 305.61 -8.7 4.7 Jul 03 Jul 02 Jul 01 Jun 30 Jun 29 Yr Ago
Electricity (3) 7869.14 -0.54 6801.09 7911.63 7898.14 6826.08 6.71 0.56 26.72 151.05 13883.95 FTSE Emerging Large Cap 889 697.73 2.3 5.6 -7.9
-6.5 1143.74
2.8 Fixed Line Telecommuniations 43 112.89 0.5 0.5 -16.6 269.57 -14.5 5.8 - - - - - -
Gas Water & Multiutilities (5) 6650.44 -1.67 5747.80 6763.10 6989.87 6373.00 5.82 0.56 30.93 196.53 9030.73 FTSE Emerging Mid Cap 888 828.88 1.8 7.2 -14.9
-13.4 1347.46
3.5 Mobile Telecommunications 53 162.76 1.3 1.3 -2.4 305.46 -0.5 3.5 Order Book Turnover (m) 33.59 191.03 49.15 91.33 97.30 97.30
Financials (309) 3922.51 -0.93 3390.13 3959.29 3879.70 5054.77 4.36 1.62 14.12 48.18 4052.40 FTSE Emerging Small Cap 1454 704.65 1.8 8.0 -6.8
-5.6 1096.23
3.1 Utilities 189 289.83 0.8 0.8 -8.8 626.97 -7.0 3.7 Order Book Bargains 647025.00 942955.00 959881.00 976191.00 928189.00 928189.00
Banks (11) 2269.07 -1.79 1961.10 2310.43 2219.12 3880.47 5.88 1.98 8.59 0.02 1868.83 FTSE Emerging Europe 75 334.31 2.1 -2.9 -24.0
-23.1 607.85
7.5 Electricity 132 325.67 0.9 0.9 -8.5 693.83 -6.8 3.6 Order Book Shares Traded (m) 1326.00 1740.00 2075.00 1777.00 1733.00 1733.00
Nonlife Insurance (8) 3029.03 -1.24 2617.92 3067.14 3018.18 3959.61 4.66 1.56 13.74 31.79 5874.17 FTSE Latin America All Cap 244 649.11 1.1 2.5 -34.1
-33.3 1097.03
3.6 Gas Water & Multiutilities 57 290.89 0.6 0.6 -9.4 650.95 -7.5 3.9 Total Equity Turnover (£m) 4902.09 8721.13 4703.15 5445.26 4136.34 4136.34
Life Insurance/Assurance (7) 6331.21 -1.89 5471.90 6453.02 6359.28 8397.36 5.82 1.74 9.87 154.93 7090.89 FTSE Middle East and Africa All Cap 327 555.42 1.5 2.6 -19.5
-17.5 4.2 Financials
954.86 863 209.94 1.1 1.1 -20.6 376.96 -19.2 3.8 Total Mkt Bargains 795589.00 1149707.00 1220211.00 1202700.00 1119714.00 1119714.00
Real Estate Investment & Services (17) 2265.91 -0.28 1958.37 2272.26 2271.83 2463.34 2.56 2.86 13.64 14.65 6464.06 FTSE Global wi UNITED KINGDOM All Cap In 303 274.68 1.4 -0.7 -23.2
-22.0 4.7 Banks
517.25 280 150.37 1.3 1.3 -29.6 295.46 -28.2 5.7 Total Shares Traded (m) 5551.00 7547.00 9107.00 7819.00 7315.00 7315.00
Real Estate Investment Trusts (40) 2273.73 -0.63 1965.13 2288.24 2265.55 2644.71 4.38 -0.92 -24.95 39.50 3200.46 FTSE Global wi USA All Cap 1781 763.95 0.5 1.7 -3.2
-2.3 1.8 Nonlife Insurance
1068.35 74 247.89 0.9 0.9 -19.7 386.88 -18.3 2.6 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable.
General Financial (39) 9182.35 -0.07 7936.07 9188.54 9050.42 9773.12 3.39 1.12 26.33 185.14 11718.51 FTSE Europe All Cap 1434 396.55 1.6 2.3 -12.8
-11.3 3.7 Life Insurance
706.97 57 186.04 1.9 1.9 -22.9 328.67 -21.2 4.1 (c) Market closed.
Equity Investment Instruments (187) 10843.29 -0.12 9371.58 10856.34 10748.31 10774.28 2.61 2.59 14.78 146.59 6415.94 FTSE Eurozone All Cap 651 385.16 2.1 3.9 -11.4
-10.0 3.4 Financial Services
685.28 210 340.68 0.8 0.8 -8.0 497.37 -6.9 2.1
Non Financials (303) 4145.44 -1.20 3582.80 4195.99 4153.48 4936.71 4.76 1.40 14.97 76.29 6902.77 FTSE EDHEC-Risk Efficient All-World 3946 386.04 0.8 0.0 -10.8
-9.7 2.7 Technology
576.39 292 414.61 0.9 0.9 15.3 529.57 16.0 1.1
Technology (16) 1986.83 0.21 1717.16 1982.63 1975.86 2392.26 3.42 0.81 35.89 23.53 2759.66 FTSE EDHEC-Risk Efficient Developed Europe 588 298.16 1.5 0.6 -11.8
-10.6 3.5 Software & Computer Services
493.85 154 728.25 1.1 1.1 19.8 869.81 20.2 0.6 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed
Software & Computer Services (14) 2123.98 -0.04 1835.70 2124.81 2117.81 2683.13 3.62 0.74 37.13 25.75 3121.31 Oil & Gas 146 240.24 1.3 -3.9 -34.0
-32.2 438.39
6.1 Technology Hardware & Equipment 138 305.61 0.6 0.6 9.9 415.61 11.0 1.7 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor
Technology Hardware & Equipment (2) 5053.94 2.85 4367.99 4913.90 4890.73 2957.92 1.35 2.76 26.72 43.15 6244.51 Oil & Gas Producers 104 230.65 1.3 -3.7 -34.7
-32.9 430.06
6.3 Alternative Energy 10 133.04 2.3 2.3 5.1 188.20 6.2 1.3 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be
Real Estate Investment & Services 161 317.98 2.9 2.9 -13.9 579.99 -12.0 3.4 liable for any loss arising from the reliance on or use of the listed information.
Hourly movements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day Real Estate Investment Trusts 81 429.13 0.1 0.1 -13.4 930.50 -11.7 4.1 For all queries e-mail [email protected]
FTSE 100 6261.64 6236.59 6216.73 6178.85 6191.87 6161.63 6161.62 6162.05 6150.07 6262.19 6137.18 Real Estate Investment & Services 152 258.63 2.8 2.8 -30.0 463.40 -29.7 4.2
FTSE 250 17513.44 17434.85 17408.89 17315.87 17339.75 17315.85 17306.93 17311.59 17299.23 17517.02 17275.57 The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/
mid cap) - please see www.ftse.com/geis. The trade names Fundamental Index® and RAFI® are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC
Data provided by Morningstar | www.morningstar.co.uk
FTSE SmallCap 5068.94 5063.55 5063.17 5058.32 5061.75 5055.61 5055.14 5052.58 5054.27 5068.94 5050.67
FTSE All-Share 3465.81 3451.99 3442.29 3422.29 3428.95 3414.54 3414.24 3414.53 3408.82 3465.81 3402.52 (US Patent Nos. 7,620,577; 7,747,502; 7,778,905; 7,792,719; Patent Pending Publ. Nos. US-2006-0149645-A1, US-2007-0055598-A1, US-2008-0288416-A1, US-2010- 0063942-A1, WO 2005/076812, WO 2007/078399 A2,
Time of FTSE 100 Day's high:07:03:15 Day's Low14:37:15 FTSE 100 2010/11 High: 7674.56(17/01/2020) Low: 4993.89(23/03/2020) 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
Time of FTSE All-Share Day's high:07:03:00 Day's Low14:37:00 FTSE 100 2010/11 High: 4257.93(17/01/2020) Low: 2727.86(23/03/2020) www.ftse.com/icb. For constituent changes and other information about FTSE, please see www.ftse.com. © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the London Stock Exchange
Group companies and is used by FTSE International Limited under licence.
Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the
London Stock Exchange Group companies and is used by FTSE International Limited under licence. † Sector P/E ratios greater than 80 are not shown.
For changes to FTSE Fledgling Index constituents please refer to www.ftse.com/indexchanges. ‡ Values are negative.

UK RIGHTS OFFERS UK COMPANY RESULTS UK RECENT EQUITY ISSUES

Amount Latest Company Turnover Pre-tax EPS(p) Div(p) Pay day Total Issue Issue Stock Close Mkt
Issue paid renun. closing Aquila Services Group Pre 7.963 7.655 0.178 0.609 0.350 1.320 0.00000 0.60000 - 0.300 0.890 date price(p) Sector code Stock price(p) +/- High Low Cap (£m)
price up date High Low Stock Price p +or- Arena Events Group Pre 183.200 135.000 23.000L 1.600L 15.000L 1.600L 0.00000 1.00000 - 1.250 1.500
There are currently no rights offers by any companies listed on the LSE. Foresight 4 VCT Pre 15.431L 2.962 7.900L 2.000 0.00000 4.00000 - 0.000 8.000
Invesco Income Growth Trust Pre 30.009L 10.097 51.250L 17.240 4.20000 4.20000 Jul 24 6.700 6.600
Manolete Partners Pre 18.682 13.772 9.456 5.938 17.000 12.000 0.00000 1.49000 - 0.500 1.490
ProVen VCT Pre 12.031L 10.346 8.200L 10.100 0.00000 2.50000 - 2.000 2.500

Figures in £m. Earnings shown basic. Figures in light text are for corresponding period year earlier. §Placing price. *Intoduction. ‡When issued. Annual report/prospectus available at www.ft.com/ir
For more information on dividend payments visit www.ft.com/marketsdata For a full explanation of all the other symbols please refer to London Share Service notes.
 UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws
Monday 6 July 2020 ★ FINANCIAL TIMES 11

MARKET DATA

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 UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws
12 ★ FINANCIAL TIMES Monday 6 July 2020

WORK & CAREERS

Covid-19 marks
‘
The future of public transportation will pressure from activist fund ValueAct, norms and shake up strategy. assets that was under way well before
shortly be a thing of the past. Later this had longstanding reasons to sever their BP’s new chief executive Bernard the pandemic incinerated their

end of the road month, Segway will produce the last of

the two-wheeled personal transporters
after which the company was named.
roots. Judy Cai, Segway president, said
coronavirus had hit PT sales but it had
not been “a deciding factor” in the
Looney has announced a writedown of
up to $17.5bn in the value of its assets
in the second quarter and is conducting
strategy plans.
Such companies, whether they
realise it or not, are disciples of Peter
for long-term The Segway PT is now better known
for the extraordinary hype around its
decision to stop making the two-
wheelers.
an overhaul of the energy group to face
up to tumbling demand for fossil fuels.
Drucker’s philosophy of “systematic
abandonment”, which the
business lines top-secret launch in 2001 than for the
revolution it failed to trigger.
Still, I can’t help thinking the crisis
may have, apologies, nervous Segway-
Mr Looney said the group was taking
“difficult decisions rooted in our net-
Knowing what we management thinker considered to be
a prerequisite for future growth. Every
Its manufacturer now generates far riders, tipped the balance. The onset of zero ambition and reaffirmed by the do now, clinging to two or three years, Drucker advised,
more revenue from kick-scooters, e- lockdown forced companies to take pandemic”. underperforming executives should ask themselves: “If
skates and other “micro-mobility” quick decisions, and accelerate pending The Swiss-Swedish industrial group we did not already produce this
products that threaten pedestrians’ changes. In the same way, as businesses ABB is pushing through a strategic businesses for product line or did not already serve
pavement stroll. Still, it is a little sad enter a lengthier, but no less brutal, review to “deliver financial focus”, emotional or this market, would we now, knowing
that the device should roll silently into period of uncertainty, owners, according to its new chief executive what we know now, go into it?”
history in the middle of a pandemic directors and executives are unlocking Björn Rosengren, with a radical historical reasons After I wrote about systematic
that emptied city streets and, in theory, strategic changes that might otherwise decentralisation. He paints the crisis as is unwise abandonment a few years ago, a reader

’
created perfect conditions for an have become bogged down by an opportunity, despite the shadow of wrote to tell me he had once heard
untroubled PT outing. sentiment or inertia. ABB’s chequered history as a case John Reed, then CEO of Citicorp,
Segway is not the only company to The buzzword, as ever, is focus. As I study in how, and how not, to manage compare his company to an accordion,
have axed or cast off a signature have noted before, it can be dangerous and organise a multinational. Cevian “with alternating cycles of expansion
product during the crisis. to sweep away old habits hastily, but Capital, the activist investor with a and contraction”. Each “contraction” —
Olympus agreed last month to sell its numerous chief executives attest that large stake in the group, has urged Mr eliminating projects and products that
camera division, part of the group since the crisis is stripping away resistance to Rosengren to proceed in a “fact-based had not succeeded — freed up
1936, following three consecutive years big corporate decisions. and unemotional manner”. If he does, resources for the next round of
of operating losses. In May, General Another Japanese company, Lixil, it seems inevitable that ABB will put expansion.
Electric finally announced the sale of which makes building materials, was some of its “heritage brands” on the Knowing what we know now,
its lightbulb business, which traced its able to drive through the sale of its block in due course. clinging on to underperforming
history back to Thomas Edison’s Italian engineering business in May. Plenty of companies now face businesses merely for emotional or
invention. The merger of the inventor’s While acknowledging the human cost questions of survival. Some may be historical reasons is unwise. It is time
Andrew Hill Edison General Electric Company and of the virus, chief executive Kinya forced into fire sales of assets. Those for executives to get out the squeeze
a rival in 1892 created GE. Seto told the Financial Times the crisis who are likely to succeed, though, will box and start playing.
On management GE, still in the middle of a radical
rationalisation, and Olympus, under
was a “disguised blessing” for
those who want to change corporate
simply be speeding up a process of
constant, cold-eyed assessment of their [email protected]

Working lives Work Tribes

‘I can’t help the camera angle,

Pandemic and economic but I will trim my nose-hair’

ANDREW HILL AND emma JACOBS

downturn ‘hitting women hardest’

The same pattern is playing
out in developed as well as
developing nations but
Linda Scott is optimistic,
writes Andrew Hill
Scott, the webinar organiser answer questions as I go.

L
inda Scott has spent years . . . Anyway, under the Keep posting!
collecting data on gender ine- circumstances, this panel is To newbies, I’m Cressida,
quality and exploring the the best of a bad job. Oh — author of She Sweet.
dark history of female sub- there they are! Hello, Nigel. Business chiefs found my
jugation. As an academic Greetings, Sonia. I was just message of sleek tailoring
researcher, she has documented the bantering with Petra from self-empowerment a breath
first-hand experience of obstacles to our webinar content team. of fresh air after the whining
women’s economic advance towards Thanks for joining this over systemic sexism. My
equality, from villages in Ghana and third technical prep session day job is running Paymee,
Uganda to the campuses of US business for your panel at Digiruption the fintech company I
schools. 6.0 — “Prescience, started 15 years ago. Here’s
But it was the coronavirus pandemic Turbulence, Impatience (in a question. No, nothing like
that brought the issues to her doorstep, Uncertain Times)”. Wirecard. I was wearing
in the form of her young granddaughter. We emailed you both the black polo necks long before
With US nursery schools emptying for 10-page “How To” manual, Markus Braun and, indeed,
lockdown and hospitals filling up with so you know we’re using our Elizabeth Holmes.
cases of Covid-19, Prof Scott’s daughter, own state of the art video Not to neglect the hardest
a doctor in an American accident and platform. You’ll see a job of all: I’m a mother of six.
emergency department, was suddenly dashboard with 12 windows. At the start of lockdown, I
on constant call. Meanwhile, her archi- During the show, you’ll get set myself the challenge of
tect son-in-law was diverted to urgent pop-ups of audience cooking a new dish every
projects refitting factories to produce questions, rolling poll day and posting the results
emergency supplies. results, plus guidance from on Insta. One advantage of
The family agreed it was safest for the tech team in Irkutsk. not travelling is free time. I’d
Prof Scott to become the primary carer Their English is a bit ropey go stir crazy — excuse the
for her four-year-old granddaughter. so they’ll message you in pun — if I didn’t push
They started isolating together at her emojis. If your broadband myself. Tonight I’ll cook
home on Rhode Island, on the US east cuts out, toggle to Option 3 something tasty and
coast, in the face of pressing deadlines Coronavirus has charge” will say, “‘We have got to focus like they had in Game of Thrones, where by police in Minneapolis. She grew up in on the drop-down and hold wholesome. You can join in!
and the imminent publication of her hit childcare, on the real economy here’ — and that you’ve got all the generals standing the South during the civil rights move- down the Alt key — that Oh, another question,
book The Double X Economy. service means men”, she says. around and . . . if you had that for the ment and says she is “horrified” by rac- should restore audio. from Bob who describes
Linda Scott, emeritus professor of industries, Prof Scott has worked closely with world economy, one of the most striking ism. She points out that it is important Rest assured I’m changing himself as a Paymee worker.
entrepreneurship and innovation at the part-time work multinationals, such as Walmart, the features would be the supply chains of to stay focused on the Black Lives Mat- my backdrop. I’ll move The “Do all employees have to
University of Oxford, tells the story not and lower retailer, and Avon, the cosmetics com- the multinationals,” Prof Scott explains. ter movement, “because a movement Complete Tintin and replace watch this?” Bob, this is fun
because she is unusual. In fact, the income jobs, all pany, to study how their supply chains “And so from an efficiency standpoint only gets [its] moment every so often”. it with Zuboff and Piketty, not mandatory! However,
reverse: her experience during lock- of which employ and distribution systems can help and from the standpoint of trying to At the same time, she is aware that in which I’m using to prop up please post your results on
down underlines some of the common large numbers women advance in countries such as accomplish your goals as soon as you the past women’s rights have been my laptop. I can’t do much the company intranet.
themes she has found affecting women of women, says South Africa and Kenya. can, you really want to work with them, crowded out, as happened in the 1970s about the camera angle. I’m As I was saying, it’s
in developing and developed econ- Professor She recognises, though, that other because that’s your main waterway.” when the peace movement “wouldn’t short of space. But I will trim stressful being a working
omies: “The pandemic and the eco- Linda Scott companies’ gender equality initiatives In the past five years, however, her hear of including the women’s move- my nose-hair, as suggested mum during lockdown. I
nomic downturn make the particular Bryce Vickmark/FT may be less secure. As they fight for sur- enthusiasm for “market feminism” has ment in their agenda”. Similarly, she is on the last call. have to organise duties of
worldwide pattern . . . perhaps more vival through the coming pandemic-in- been tempered by the growing realisa- wary of companies’ tendency some- We’ve got 40 minutes, so two nannies and various
visible than it has ever been, because the duced recession, business leaders “who tion that untrammelled free markets do times to fold gender diversity into a after my 20-minute tutors on top of everything
way this pandemic is playing out is the have issues with gender equality and are not help women if they systematically wider “sustainability” budget. “What introduction and slides, that else. But if I can make one
same: it’s hitting women hardest and it’s not very informed” may argue for gen- deprive them of access to finance, capi- happens to a gender issue when it gets leaves five minutes each, mum’s day easier then it
hitting hardest for the same reasons”. der programmes to be set aside. The tal, and economic and business power. muddled in with other good things . . . six for Q&A and a will be worthwhile.
For instance, she says, the virus has hit virus “gives them a ready-made She is concerned not only about set- is that it tends to disappear,” she said. couple of minutes Another question!
childcare, service industries, part-time excuse”, she says. backs for women in autocracies such as Despite the exhaustive data- and for me to sum up. Yes, we are at our
work and lower income jobs, all of An English and history graduate who China or Cuba, but also in established research-based evidence that Prof Scott Sonia — thanks second home. Not
which involve disproportionate num- went on to complete an MBA and a doc- market democracies. “In the United marshals to support her argument that for joining us. I strictly within the
bers of women. torate in communications, Prof Scott States, everybody is focused on the women are being held back, she realise 4am in Palo rules but we made
The Double X Economy, a concept started her academic career in the 1990s abortion fight, and that is of course very remains hopeful about the prospects Alto is a punishing Meet the tribes the move on health
Read the series
Prof Scott devised in the 2000s, is for studying advertising and marketing. much front and centre right now,” she for, and potential of, the Double X Econ- start-time but as ft.com/ grounds. The kids
women what, say, the gig economy is for Instead of swallowing the view of some says. But they “haven’t really noticed omy. She rewrote the concluding chap- diversity pioneers, in work-tribes need to run around
independent workers — “an identifiable feminists that cosmetics and consumer that the conservative judges have essen- ter of the book to be more upbeat. And these troubled times — our London
part of the world system” with “certain goods companies were exploitative, she tially blocked the employment rights she is determined that, despite its pas- we wanted a garden is only half an
ways of doing business, as well as typical saw that both their products and their won in the 70s”. sion, it should not be seen as an “angry “rainbow panel” and you’re acre which is pretty tight
products and services”. When women global structure could underpin Between her two FT interviews, Prof feminist rant”. not just black — can I say with six kids. Anyway, we’re
are enabled and empowered to partici- women’s economic progress. Scott has also watched the growing pro- What distinguishes her book from that? — you’re a woman, fairly young and healthy. I’m
pate fully in the economy, she writes, “If you had one of those big war tables tests about the killing of George Floyd such polemics, she believes, is that she too! It was like buy-one-get- looking forward to advising
their involvement “produces a better cites abundant evidence for her case, one-free! No, we’re not government on risk —
environment for all citizens” and, in the outlines practical steps that individuals, actually paying you. Yes, I’m they’re hysterical! The UK
poorest countries, alleviates distress Investment Invest in gender-supportive women. Evaluate and incentivise companies, and global organisations aware you co-founded four needs more entrepreneurial
and suffering. Support companies, female entrepreneurs and managers on diversity achievements. should take, and includes an open invi- successful companies, but expertise like mine.
She points out, though, that this huge large-scale projects that aim to benefit Speak up about sexism and harassment. tation to men to join what she describes I’m giving the lead to Nigel I’m making pizza with a
source of economic potential — in the women. Disinvest in companies that as “one of the most important causes of to talk about the tech — he polenta twist. It’s good to
US, the Double X Economy would be big egregiously violate gender equality. Speech Avoid using “implicit bias” our time, perhaps in history”. has the authority, after all — support local business so
enough to join the G7, if it were assessed Six ways or “unconscious bias” to describe Still, she expects to hear plenty of new and let you fill in the softer I’ve got mushrooms ordered
as a separate nation — is largely ignored individuals Consumption Choose products made by conscious bias, let alone outright bigotry. excuses for not pressing forward. One is stuff about minorities, if via a wonderful Italian shop
by economists and policymakers. In the can help gender-friendly companies. Shame those who withhold fair pay from likely to be the idea that existing homo- there’s time. That OK? I near our house in Tuscany
second of two FT interviews — one in someone who must support children. geneous teams will make better deci- think you’re muted, but . . . God, what’s going on?
March as the pandemic was closing in on women in Awareness Raise awareness about sions in the coming downturn than moving on . . . The kids are flooding my
the US, and the other last month — Prof the economy women’s exclusion. Share information, Charitable giving Give to charities that more diverse groups. video with their messages. It
Scott outlined her fears that the acute tweet or write about the cause. specialise in empowering women. She has this retort: “One of the ways Cressida, the superwoman is absolutely not true that a
pressure of handling the pandemic in which you would not make good Hi! Welcome to my first chef made these . . .Bella!
would reinforce their tendency to treat Employment Share information on pay. Adapted from “The Double X Economy”, decisions is you would ignore half the Instagram cook-along. I’ll Celia! Come down here now!
women as “bit players”. The “people in Mentor and sponsor up-and-coming by Linda Scott (Faber) population.”
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Monday 6 July 2020 ★ FINANCIAL TIMES 13

WORK & CAREERS

Wimbledon is off but All England Club undefeated

continue to consider the consequences
Chairman Ian Hewitt is of cancellation — communicating deci-
determined to see the sions and the thinking behind them is
vital. We have to take people with us.”
Grand Slam back in 2021 Mr Hewitt says that while stars live a
as he tackles revenue millionaire lifestyle, the sudden cancel-
lation of tournaments has been a finan-
losses, writes David White cial blow to most lower ranked players.
“The club has been pleased to contribute

I
t would have been the opening day to the Player Relief Programme.”
of the oldest tennis tournament Other issues ranged from handling
in the world last week, one that refunds for tickets paid for after being
attracts 500,000 spectators over awarded via public ballot (with the
two weeks and millions more option of buying tickets for the same
watching on television and online. seats for Wimbledon 2021) and com-
But the 42-acre Wimbledon grounds pensation for Centre and No 1 Court
are silent; there will be no diehard fans debenture holders, which come with
camping overnight to secure a prized seats, to continuing negotiations over
ticket or tennis stars preparing to com- the infectious disease insurance policy.
pete in what is widely regarded as the The virus also led to the suspension of
leading Grand Slam. year-round activities such as education
When Ian Hewitt was appointed services, the museum and guided tours,
chairman of The All and arranging homeworking for most
England Lawn Tennis Club (AELTC) last staff, with none furloughed. Many staff
December all looked set for Wimbledon are working on community-related ini-
2020. But five months later, he tiatives: grants and food are being
announced its cancellation — only the donated via the Wimbledon Foundation
first and second world wars had stopped to local organisations and medical facil-
it going ahead since 1877 — amid the rap- ities and supplies in the grounds are
idly escalating coronavirus pandemic. open to the NHS. “We may not have a
“The decision weighed heavily on our From left: uncertain beyond high summer,” says Mr mercial arrangements needed to stage Mr Hewitt became a full member of tournament this year but we can still
minds,” says Mr Hewitt, 73, who leads Serena Williams Hewitt. While giving three months the tournament while maintaining the AELTC in 1998, joining the manage- help with the consequences of corona-
the club’s main board. “Public health and Andy notice of cancellation established one morale among staff who had spent thou- ment committee in 2012, chairing sub- virus,” says Mr Hewitt. “It’s something
had to be the main consideration and we Murray in 2019. certainty, it robbed the club of its mission sands of hours preparing for an event committees and leading its charity, the the club and staff were keen to do and
acted on advice from the government Novak Djokovic to “stage the world’s leading grand slam” that would no longer happen. Wimbledon Foundation. After being has boosted morale . . . We will always
and health authorities. Given the meas- after winning along with an estimated £250m in poten- The club had taken out infectious awarded a blue in tennis at Oxford while be part of the local community and are
ure of this global crisis, it was ultimately the 2019 men’s tial revenue from sources including disease insurance after the 2003 Sars reading law at St Edmund Hall and play- glad to use the club’s resources to help in
right to cancel this year’s championships singles final. broadcasting rights and tickets. outbreak but was entering unknown ing for Hampshire, he began a 30 year any way we can. Our kitchen in the
and instead concentrate on using the Below: Ian Only months after taking on the role territory as the magnitude and global career with law firm Freshfields, becom- grounds has been opened to deliver 200
breadth of our resources to help those in Hewitt — Glyn Kirk/ of leading the club founded in 1868, Mr impact of coronavirus was not known ing a senior partner and working in busi- hot meals a day to those in need in Mer-
our local communities and beyond.” Getty; Adrian Dennis/Getty;
AELTC/Thomas Lovelock
Hewitt was facing a huge financial hole when first reports emerged from China. ness areas including M&A. ton and Wandsworth.”
The risk of spreading infection at large and having to unpick the web of com- But Mr Hewitt adds: “Our manage- “My career has been helpful in under- While the tournament might be off,
public gatherings had become clear: ment committee and senior executive standing contracts with suppliers and the club wants fans to enjoy what it is
500,000 tennis fans attend the tourn- team draws on wide experience of busi- others involved in staging the champi- calling, “The Greatest Championships”.
ament, along with 6,000 support staff ness and tournament planning and we onships,” Mr Hewitt believes. “But I also Highlights of past championships and
providing everything from security and were able to move quickly in monitoring know the power of team work that’s at other material are being hosted on wim-
food and drink to umpires and ball boys developments and taking account of the heart of the club in dealing with the bledon.com and social media during
and girls. Added to this was the danger of government and other advice. unexpected as well as long-term priori- what would have been Wimbledon 2020.
infection spreading among the hundreds “The club’s culture has always been to ties. We can never stand still in the com- ‘It was “I’ll be looking at our efforts to help the
of competitors taking part.
Staging the event behind closed doors
work together in the best interests of
tennis, our members, staff, suppliers
petitive world of Grand Slams — there’s
always the next big investment in courts
impossible local community on the day Wimbledon
2020 would have opened,” says Mr
(and televised worldwide) was ruled out and partners and the local community — and other facilities to consider.” to know Hewitt. “But I’ll also be following the
as not protecting staff and competitors — and these values have been our guide. But no one could have foreseen the online content we’ll be offering.” And his
as was postponing it. “It was impossible Our small size with tight management huge virus-related challenges. Did he how the message to fans missing live matches?
to know how the virus would spread and
there’s only a narrow window for playing
structure (350 full-time members with
some 300 permanent staff) also brought
have sleepless nights? “I’m working with
talented colleagues who’ve provided
virus would “We’ll do everything possible over the
coming year to make Wimbledon 2021
on grass as the weather becomes more agility to coping with the unexpected.” tremendous support,” he says. “We spread’ happen safely.”
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14 ★ FINANCIAL TIMES Monday 6 July 2020

arts

Ringo Starr,
a Beatle at 80
The drummer on why he is celebrating the milestone with an
online concert alongside Paul McCartney. By Emanuel Levy

I
n 2008 Ringo Starr was asked by an tour last year, and I’ll be introducing. ”
interviewer what he would like for Starr has taken a keen interest in the not just talent but luck and timing in a
his upcoming birthday. “I don’t Black Lives Matter protests and has musician’s success and how the business
know where it came from, but I voiced his “continuous support to eve- has changed over the years. “It’s hard to
said, ‘I’d like them all at noon to go ryone marching and speaking up for jus- say who’s gonna last. Nobody knew we
“Peace and Love”’. So a week later was tice and a better world”. Looking back to were going to last, we were rejected by
my birthday and we organised it, and the 1960s, he is proud of the Beatles’ record labels. But now, where do you
they made little cakes, there were 100 stance at the time. “We refused to play start? There’s few clubs you can go and
people and we had the Peace and Love in Mississippi, we didn’t dig segrega- play. It’s much harder now, everyone’s
moment at noon. I counted down . . . tion . . . So everywhere we went we streaming, including the Beatles, that’s
3, 2, 1 . . . Peace and Love.” said, ‘we play to all people, and people the new way. It’s so far out now.”
The tradition began in Chicago and are people’. And they said ‘OK’. In the One of his current projects is The
has since been celebrated in cities South, that was a first for us, and a first Beatles: Get Back, a documentary put
including Nice and the Beatles’ old for them.” together by Peter Jackson of Lord of the
haunt Hamburg. It has now grown to 27 Starr says it was African American Rings fame. “We began it a long time ago
countries, all of which mark Starr’s performers who inspired him to get into from a live show on the roof of the Apple
birthday with Peace and Love moments. music in the first place. “All of our building,” Starr says. “We found 56
“When we’re in LA, which I am now,” he heroes were black, from Ray Charles to hours of unused footage. We asked Peter
says, “we have a big stage put up by the Lightnin’ Hopkins, any way you want to Jackson to help us, and he put the con-
Capitol Records building in Hollywood cert together and it’s incredible. In the
and we have bands playing, friends first version, there wasn’t a lot of joy, too
come and play for the audience and we
‘When I was 19 I tried to many down moments, and in this one,
have a big brunch.” emigrate to Texas. we’re all laughing and having fun. It’s got
This year will of course be different. a joyous outlook.”
To ring in his 80th birthday tomorrow, I wanted to be where The film is due for release by Disney in
Starr has planned an online celebration
to benefit Black Lives Matter, the David
Lightnin’ Hopkins was’ September but that date is now in doubt
because of the pandemic. “We’re all sort
Lynch Foundation, the charity Musi- of in limbo,” he says. “I even heard that
Cares and other organisations. For go. Stevie Wonder was one of them . . . Peace and Love: began honing his skills closer to home in the table now and I go, ‘What? All these James Bond’s not coming out, so it really
“Ringo’s Big Birthday Show” he has When I was 19 I tried to emigrate to Ringo Starr, who turns 80 Liverpool. “I just started playing in people are related to me?’ It’s far out.’” must be hell out there.”
summoned musicians including fellow Houston, Texas. I wanted to be where tomorrow, pictured last bands in the factory I worked in. I Reflecting on his life, Starr says, But, always upbeat, he adds, “Look,
Beatle Paul McCartney, All Starr Band Lightnin’ Hopkins was, my all-time year. Above right: on stage played with Rory Storm and then I went “I don’t look back at it too seriously, I’m I was in the best band in the world, and I
guitarist Joe Walsh, Gary Clark Jr, Sheryl favourite blues player.” with the All Starr Band. to the best band in the land, the Beatles.” here, the road I’ve taken had many good loved those guys, they were brothers to
Crow, Sheila E and Ben Harper to give However, his pursuit of the American Below right: playing with He is reluctant to discuss which drum- choices and some other choices, but me, I had three brothers. Life has been
performances from home, and the show dream was undone by bureaucracy. “We The Beatles on the roof of mers influenced him. “It’s always the here I am now.” Even so, he marvels at very kind to me.” And, lest we forget, he
will also contain new concert footage. went to the embassy and filled in all the Apple building in 1969 same question, ‘what drummers did how it all began. “I’m still blown away reminds us of the big event that is loom-
“We were planning it [for LA] these forms. We even had a list of facto- Mario Anzuoni/Reuters; Kevin Winter/Getty;
Express/Getty
you like?’ and I would say, I was listening that I was 13, in hospital [with tubercu- ing. “July 7 is my birthday, and at noon I
but things have changed. It doesn’t ries where we could apply for jobs to records as records, I wasn’t listening losis], and the music teacher came hope you’ll spread Peace and Love
matter where we are in the world as because I was working in a factory then. for the drummers.” But he does name round to keep us busy, and he gave me a wherever you are. That’s the deal, OK?
there’s a virus everywhere. So I’ve asked We took them back down to the one. “My hero is [American jazz drum- little drum. And from that minute on, I We’re still on the road!”
my friends [to play at home], or send embassy and they gave us more paper- mer] Cozy Cole; I just love what he did only wanted to be a drummer. And I’m
me footage from a show they’ve work, more sheets, so we turned back because he did tom-tom stuff.” still doing it. That’s far out.” ‘Ringo’s Big Birthday Show’ is on YouTube
done. I’m using some of mine from the into teenagers and just ripped them up.” Has not being able to play in public Starr is conscious of the importance of at 8pm EST on July 7
Ringo Starr & His All Starr Band Instead the young Richard Starkey during the pandemic been difficult for
him? “I just love to play,” he says. “I
should have been playing right now and
in the first tour of two this year, then
having a break for my birthday, then
September and October tour. I really
miss that.” And he has no plans to give
touring because of the latest milestone.
“We’re in a great business and we can
just go on as long as we can go on. And I
plan to go on a lot longer than 80.”
Beyond music, he says his greatest joy
in life is being the head of a big and grow-
ing family. “My wife Barbara’s a blessing
[actress Barbara Bach], my children are
blessings, I’ve got eight grandkids now
and a great grandson.” As an only child,
he says “The only thing I ever wanted
was an older brother. But I look around

Race, violence and unfinished business

suspicion by the white population. The by black families. In Marion, he control-
podcasts pair track down Banks’ children, for led tax, voting, public records and the
whom the trauma of what they lost per- local newspaper. It’s worth noting that
Fiona sists, and who never found out what though Goodwin lived modestly, when
Sturges happened to their father. What they do
know is that, when Banks’s eldest
his widow died in 1999 she left a bequest
of $7m to her local Baptist church.
daughter went to the local courthouse to Racial tension is at the heart of the
pay the family’s taxes, she was told she Luminary series Murder on the Towpath
had nothing to pay, because the land and with Soledad O’Brien. It tells of a society

I
n the middle of the last century, in a businesses were no longer theirs. woman from the smart Georgetown
small town called Marion on the There have been two episodes so far neighbourhood of Washington found
Arkansas Delta, lived a man named but already the parallels between then dead by the canal in 1964; within an
Isadore Banks. “[He was] a good and now are clear and powerful. In the hour, a local black man had been appre-
man, a big tall man, a strong second episode we hear about the local hended for her murder. O’Brien’s narra-
man, and he was a very kind man,” sheriff Cecil Goodwin, beloved by white tion is hammy at times, though the story
recalls one of the town’s elderly resi- residents but remembered differently is extraordinary and affecting.
dents. Banks owned 1,000 acres of farm-
land, plus a trucking business, a café and ‘A good man’:
a grocery store, and was one of the rich- an undated
est men in the county. He was also photograph of
African American and, one night in Isadore Banks
1954, he was lynched. and his daughter
Banks’s death went uninvestigated at Muriel
the time and his family eventually left.
In 2007, the FBI added his murder to a
list of unsolved civil rights cases ripe for
reopening, but it wasn’t taken any fur-
ther. Then, three years ago, the journal-
ists Taylor Hom and Neil Shea began
researching the murder, talking to local
people and leafing through county
archives. The fruits of their labour are
documented in the new Stitcher podcast
Unfinished: Deep South, which is sad,
often shocking, and deftly told. In the
wake of the killing of George Floyd
and the Black Lives Matter protests, the
timing of the podcast is startling. This
story of what Hom calls “the unfinished
business of race and violence in this
country” is the right one for where we
are now.
Hom and Shea reveal how a black man
found ways to prosper after the first
world war, and how he used his wealth to
help the black community. It also tells of
a culture of envy, entitlement and denial
in the Jim Crow south, and how well-
to-do black families were viewed with
 UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws
Monday 6 July 2020 ★ FINANCIAL TIMES 15

FT BIG READ. THE NEW SOCIAL CONTRACT

FT Series Covid-19 could transform many western societies by demonstrating the need for competent
government. But without a thriving and stable middle class, the state risks succumbing to plutocracy.
By Martin Wolf

‘We must think as citizens’

“It is clear then that the best partnership First, it has caused an economic shut-
in a state is the one which operates down to curb the spread of the disease.
through the middle people, and also that This came at the expense of the young,
those states in which the middle element who are relatively immune to the effects
is large, and stronger if possible than the of the virus, and in favour of the old,
other two together, or at any rate stronger who are the most vulnerable.
than either of them alone, have every Second, it has tended to hit women
chance of having a well-run constitution.” harder than men and the unskilled
Aristotle, Politics harder than the skilled. This is
explained by the relatively high inten-

C
ovid-19 has been a global sity of female employment in some
shock. But will it be a trans- hard-hit (and risky) service sectors and
formative one? The answer to the ability of a higher proportion of
is that it might be a trans- skilled people to work securely from
formative event for a home.
number of western societies, notably Third, coronavirus seems set to
the US and UK. exacerbate many prior inequalities.
For western liberal democracies the Some of the largest support has gone to
era after the second world war can be the financial sector, as happened in the
divided into two sub-periods. The first, financial crisis.
running roughly from 1945 to 1970, was Fourth, the pandemic has forced
the era of a “social democratic” or, as vastly greater fiscal spending even com-
Americans might say, a “New Deal” pared with the financial crisis. This now
consensus. The second, starting around raises the question of how this debt is
1980, was that of the “global free going to be managed and who is going to
market”, or the “Thatcher-Reagan pay.
consensus”. Fifth, the virus has demonstrated the
Between these two periods came an power and resources available to the
interregnum — the high-inflation 1970s. state. Reagan used to say that “the nine
We are now living in what seems to be most terrifying words in the English lan-
another interregnum, which began with Aristotle proposed a richly linked political community of citizens. In contrast, Donald Trump’s reforms have cut both regulation and aid — FT montage; Getty Images guage are: I’m from the government,
the global financial crisis. That crisis and I’m here to help.” That was the best
damaged the ideology of the free mar- encapsulation of the philosophy of the
ket. But, across the western world, val-
The US mortality rate has not followed its expected path A crisis of faith in democracy era he helped create. Today, the demand
iant attempts were made to restore the Deaths per 100,000 people Change in dissatisfaction with democracy since 1995 (%) not just for help from government but
US
ancien régime, through the rescue of the 450 for help from competent government is
Franc 30
financial system, tighter financial regu- e back.
lation and fiscal austerity. US white non-hispanics
400 A new civic context
In the event, the rise of populist UK 20 Australia
nationalism followed this attempted 350 So what might a return to the idea of
restoration. With his protectionism and Predi UK citizenship mean, in this new context?
Sweden ct ion
bilateralism, promise to preserve social 10 Canada It does not mean that the state should
300
security and initial (since forgotten) have no concern for the welfare of non-
emphasis on rebuilding infrastructure, citizens. Nor does it mean that it sees the
250 0
Donald Trump became leader of his New Zealand success of its own citizens as a counter-
party because he was not a traditional part to the failures of others. On the con-
200
free-market Republican. With his com- -10 trary, it seeks mutually beneficial rela-
mitment to levelling up poorer regions 1990 1995 2000 2005 2010 2015 1995 2000 2005 2010 2015 2020 tions with other states.
and favourable references to Franklin Source: “Deaths of Despair and the Future of Capitalism” by Anne Case and Angus Deaton Sources: Bennett Institute for Public Policy, Cambridge University It does not mean that states should
Delano Roosevelt’s New Deal, Boris cut themselves off from free and fruitful
Johnson has also indicated a new direc- Five decades of decline in industrial employment Covid-19 has added to the pain for vulnerable groups exchange with other societies. Trade,
tion of travel. These leaders have buried Employment in industry as a share of total civilian employment (%) % change in employed workers in the US during Covid-19 downturn movement of ideas, movement of peo-
Ronald Reagan and Margaret Thatcher. ple and movement of capital, properly
Germany 50 By age
Coronavirus has also now caused a regulated, can all be highly beneficial.
still more dramatic return of govern- UK 16-24 It does not mean that states should
Italy 25-34 = Financial crisis
ment than the financial crisis. This may France 40 35-44 avoid co-operating closely with one
mark the end of the second postwar Spain 45-54 another to achieve shared goals. This
Japan 55+
period of transition. US By education applies above all to actions designed to
30 No high school diploma
Around what idea might politics, soci- High school diploma only protect the global environment.
ety and the economy now revolve? The Bachelor’s degree or above What it does mean is that the first
By ethnicity - women
answer should be citizenship, a concept 20 Hispanic women concern of democratic states is the wel-
that goes back to the city states of the Asian women fare of all their citizens. To make this
Greeks and Rome. It is more than just a Black women real, certain things follow.
10 White women
political idea. As Aristotle also said: By ethnicity - men Every citizen should have the reason-
Asian men
“man is a political animal”. We are only Hispanic men able possibility of acquiring an educa-
fully human, he thought, as active par- 0 Black men tion that would allow them to partici-
ticipants in a political community. 1970 80 90 2000 10 19 White men pate as fully as possible in the life of a
In a democracy, people are not just -25 -20 -15 -10 -5 0 high-skilled modern economy. Every
Source: OECD Source: Pew Research Center
consumers, workers, business owners, citizen should also have the security
savers or investors. We are citizens. This needed to thrive even if afflicted by the
is the tie that binds people together in a
shared endeavour.
‘One aspect countries devastated by war. Western
governments took an active role in man-
tendency to reward management by ref-
erence to the price of stocks.
The global financial crisis was the out-
come of financial liberalisation in the
ill luck of illness, disability or other mis-
fortunes.
In today’s world, citizenship needs to of “rigged aging their domestic economies, while Another aspect is the decline in com- context of rising macroeconomic imbal- Every citizen should have the protec-
have three aspects: loyalty to demo- simultaneously liberalising and petition, documented for the US by Tho- ances, as argued by Matthew Klein and tion at work needed to be free from
cratic political and legal institutions and capitalism” expanding foreign trade. mas Philippon in his book The Great Michael Pettis in Trade Wars are Class abuse, both physical and mental. Every
the values of open debate and mutual is the Intellectually, this should be called Reversal. Also relevant is tax avoidance, Wars. The most important outcomes citizen should also be able to co-operate
tolerance that underpin them; concern the Age of Keynes. But it died with the notably by corporations. US multina- were the sudden economic collapse, the with other workers in order to protect
for the ability of all fellow citizens to inordinate surge in inflation, which precipitated tionals have been allowed to report a rescues of the financial system, the sub- their collective rights.
lead a fulfilled life; and the wish to cre- the labour unrest and economic slow- huge proportion of their foreign profits sequent emphasis on curbing govern- Successful citizens should expect to
ate an economy that allows the citizens
growth of down of the 1970s. The Keynesian era in small, low-tax jurisdictions. Such ment spending and the post-crisis slow- pay taxes sufficient to sustain such a
and their institutions to flourish. finance. was then followed by that of Milton opportunities and many others in dif- down of growth. In the eurozone, this society. Corporations should under-
Friedman, characterised by globalisa- ferent areas are not just being exploited. was exacerbated by the way in which stand that they have obligations to the
Anger and despair at the system Another tion, liberalised markets, low marginal They are being actively created, through creditor countries lectured the strug- societies that make their existence
The most important reason for empha- is the taxes and a focus on controlling lobbying. glers on their alleged irresponsibility. possible.
sising citizenship today is that outlined inflation. However convenient it is to blame for- Mr Trump became president of the The institutions of politics must be
by Aristotle almost two and a half mil- decline in This new global era saw striking suc- eigners, they are not the guilty parties. US and Mr Johnson became prime min- susceptible to the influence of all citi-
lennia ago. A necessary condition for the cesses, notably reductions in global ine- Trade, especially the sudden expansion ister of the UK because of their success zens, not just that of the wealthiest. Pol-
stability of any constitutional democ- competition’ quality and mass poverty. It also was an of manufactured imports from China in in incorporating the resentment of icy should aim at creating and sustain-
racy is a thriving middle class (by which era of important innovations, notably in the first decade of this century, gener- those “left behind” into their conserva- ing a vigorous middle class while ensur-
is meant people in the middle of the information technology. ated local shocks. Yet Harvard econo- tive coalitions. This, in turn, was partly a ing a safety net for everybody. All citi-
income distribution). In its absence, the Not least, it was the era in which mist Elhanan Helpman concludes a reaction of large parts of the old working zens, whatever their race, ethnicity,
state risks turning into a plutocracy, a Soviet communism collapsed and the review of the literature by stating that classes to the transformation of the tra- religion or gender are entitled to equal
demagogy, or a tyranny. ideal of democracy spread across the “globalisation in the form of foreign ditional parties of the left (Labour and treatment.
With the hollowing out of the middle world. trade and offshoring has not been a Democrats) into ones more representa- Citizens are entitled to decide who is
class, even established western democ- Yet a number of big weaknesses large contributor to rising inequality”. tive of university-educated cosmopoli- allowed to come and work in their coun-
racies are now in danger. As Eric Loner- emerged. Economic growth in high- tan voters and ethnic and cultural tries and who is entitled to share the
gan and Mark Blyth argue in Angrynom- income countries tended to be low rela- Changes for the workforce minorities. obligations and rights of citizens with
ics, the combination of adverse eco- tive to that achieved in the postwar era. Far more important has been techno- them.
nomic developments with manifest The distribution of income and wealth logical change. Particularly significant Impact of the pandemic How precisely such aims might be
unfairnesses has made many people became more unequal. The economic has been rapid productivity growth in Some argue that viewing these political achieved is what politics must be about.
angry. value of relatively uneducated labour manufacturing, as Martin Sandbu shifts in economic terms is an error. But this does not mean going back to the
In Deaths of Despair and the Future of
Capitalism, Anne Case and Angus Dea-
fell relative to that of college graduates.
Labour markets became more “flexi-
argues in The Economics of Belonging.
Also important has been the rising
These are, they argue, responses to cul-
tural changes, such as immigration, the
‘The 1960s. The world has changed too pro-
foundly and in most ways for the better.
ton argue that these developments have ble”, but earnings were more precari- demand for skilled labour relative to changing place of women and new sex- institutions We are not going back to a world of
also driven many into severe ill-health. ous. The more unequal the society, the unskilled labour. ual mores. This is unpersuasive, for two mass industrialisation, where most edu-
They note that the death rates of mid- lower its social mobility. The decline of manufacturing as a reasons: first, cultural and economic of politics cated women did not work, where there
dle-aged white Americans have risen The New Social
Contract
In cultures that emphasise the obliga- source of employment has had adverse changes cannot be separated from each must be were clear ethnic and racial hierarchies
since 2000. Something similar seems tion to look after oneself, inequality as effects on towns and regions in which another; and second, culture does not and where western countries domi-
more recently to be happening in the Each day this
week the FT
such may not be so socially or politically they were concentrated. When factories change so quickly. susceptible nated. Moreover, we face, with climate
UK. “Deaths of despair”, they suggest, destabilising. But the sense of deterio- close or lay off a large proportion of their What needs explaining is the shifts in change, the rise of China and the trans-
“are prevalent among those who have
explores the
rating prospects for oneself and one’s workforce, the wider local economy is voting behaviour. The answer is the
to the formation of work by information tech-
frailties in our
been left behind, whose lives have not economic and children certainly matters. So, too, does also adversely affected. Such “left changing allegiances of people who have influence of nology, very different challenges.
worked out as they expected.” social model and a strong sense of unfairness. behind” regions have become a crucial come to suffer from status anxiety — the Yet some things remain the same.
How did we get here? How does the potential This is where the idea of “rigged element in the coalitions of the disaf- fear that they live on the edge of an eco- all citizens, Human beings must act collectively as
Covid-19 fit in? And how might our ideas solutions. capitalism” is relevant. One aspect of fected. Meanwhile, cities, especially the nomic cliff or are already falling over it. well as individually. Acting together,
and policies need to change? Tomorrow: will
this is the inordinate growth of finance. great metropolises, are dynamic hubs Into this already fraught situation has
not just that within a democracy, means acting and
low-paid workers
The postwar settlement worked well, ever get a raise? Another is the shift towards the maxim- for educated people and new activities, come the thunderstorm of Covid-19. of the thinking as citizens. If we do not do so,
for a while. It was egalitarian and isation of shareholder value as the sole as Oxford university economist Paul This in turn has had at least five big democracy will fail. It is our generation’s
economically dynamic, especially in ft.com/thebigread
goal of companies and the associated Collier has noted. effects. wealthiest’ duty to ensure it does not.
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Letters
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Corrections: [email protected]
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A decision that weakens

Covid-19 is rewriting the code of air travel the institution of marriage
In addition to being the first time in
The current recalibration of airline totally new factor, akin to and health phenomenon, but in many 200 years (since the failed marriage of
labour (“American Airlines could have Schumpeter’s “gale of creative ways it is acting as a new social George IV to Queen Caroline in 1820)
over 20,000 excess employees”, destruction”, is literally dismantling computer program that is rewriting that the government has intervened in
Report, July 3) is fascinatingly different many elements of the airline business: lines of behavioural code. It will also a marital dispute at the highest court,
from earlier periods where such a set of factors, including rewrite financial code, as the my Supreme Court case has indeed
adjustments were a result of traditional environmental, that on the one hand traditional array of airline equipment stirred debate on “divorce tourism”, as
industry disturbances such as armed compel customers to adopt alternative lease finance, labour costs, corporate Jane Croft reported (July 2). I believe
MONDAY 6 JULY 2020 conflicts, oil shocks, economic digital technology to replicate face-to- debt and equity will face some forms of the court’s majority decision, regarding
cyclicality or competitive intensity. The face interaction; and on the supply obsolescence. “Villiers vs Villiers”, in support of
industry is now responding to an side, that thereby replaces the flying Microsoft founder Bill Gates once untrammelled intra-UK “divorce
entirely different dynamic in the machine with a thinking machine; the said “the aeroplane became the first tourism”, has undermined the
economy, but even more, a shift in the airport with a homeport; and airspace world wide web, bringing people, institution of marriage in the UK.

Macron assumes total entire society.

Prior solutions in the airline sector
were centred largely in competitive
with cyber space (indeed, Apple’s
recent Worldwide Developers
Conference was conducted entirely
languages, ideas and values together”.
He may not have appreciated that the
web might become the aeroplane.
It is now possible for a spouse to
leave Scotland one evening, abruptly
severing their Scottish ties, go to stay in

control with reshuffle frameworks of relative cost, but they

were frameworks and costs strictly in
aviation, between other airlines. Now a
online as a virtual technology
showcase).
Covid-19 seems primarily a biological
Matt Andersson
President, Indigo Aerospace,
Madison, IL, US
a rented flat in England, and
conceivably be habitually resident for
making a maintenance claim in
England as soon as they stepped off the
By choosing a technocrat as PM, the president leaves himself exposed train at Euston the next morning.
Advertisers see value in Gove’s Silicon Valley Even if they own shares in the parent
Emmanuel Macron has resorted to a domestic matters to his premier. More plc of the Caledonian Sleeper service, I
tried and tested technique of French recently, presidents have exercised boycotts of social media approach fails to impress believe every young person of means or
leaders jettisoning their prime minis- executive power over all areas, none As Izabella Kaminska points out Michael Gove’s Ditchley lecture ambition in the UK will now question
ters to reboot a flagging presidency. On more so than the hyperactive Nicolas (“Look closely at the motives of (Opinion, June 30) is a worrying the institution of marriage.
Friday he ditched Edouard Philippe, Sarkozy who scoffed at his predeces- advertiser boycotts,” Opinion, July 2), manifesto for increased executive Charles Villiers
who had led the government compe- sors as “idle kings”. Mr Macron has there is no shortage of self- power and reduced oversight and Tyninghame, East Lothian, UK
tently for three years, steering it taken the trend to its logical conclu- congratulatory virtue-signalling by responsibility.
through violent street protests and the sion, by assuming the role of the prime companies trying to reach and excite He wants to move to a risk-taking Another view of China’s
coronavirus crisis and implementing minister himself. potential customers via social media. model with “fail forward” as a criterion
an ambitious set of reforms. But an omnipotent president, That said, the argument that for success. This is Silicon Valley territorial claims
Presidencies consist of phases that together with a weak parliament, businesses should not leverage their language but doubly ripped out of Mian Qadrud-Din is correct to state
may legitimately require different per- hardly meets the standards of a 21st advertising spend to better manage context. (Letters, June 29) that “India’s claim to
sonnel. Events can intervene and century liberal democracy let alone the brand image makes no sense. First, in public markets, investors be sharing a boundary with Aksai Chin
demand a change of direction and of separation of powers, a doctrine The entire argument for shifting ad risk capital based on accurate is based on its disputed occupation of
style. A new face can convey a sense of invented in France, after all. And Mr spend to social media was to get more disclosure and limit down exits. the Kashmir Valley and part of
renewal. Mr Macron is following a Fifth Macron cannot avoid the paradox that precise placement within viewing Neither of these apply to governing and neighbouring Ladakh”. However,
Republic tradition. The trouble is it has has weakened faith in contemporary range of narrowly targeted audiences, the governed. The risk takers are the China’s claim over Ladakh too rests on
seldom, if ever, worked. In Mr Macron’s democracy: the French want a strong made possible by usage data and voters, who get given vague manifestos its disputed occupation of Tibet.
case, it could even backfire by accentu- leader but not one who arrogates all analytics. But what is the value of Whitehall shake-up plans: Cabinet which governments can reinterpret to Tibet has had a complex relationship
ating the very perception that makes power to himself. placement if the surrounding content Office minister Michael Gove imply the most extreme logical with successive Beijing-based dynasties
him so unpopular: that he wants to run Mr Macron may feel the next presi- begins to engage and distract viewers consequences of their vagueness. And over the centuries. Between 1947 and
the country all by himself. dential election is destined to end in a through outrage, to the detriment of voters cannot exit their investment until China’s invasion in 1951, Tibet
Mr Philippe was replaced by Jean repeat duel with the far-right leader the platform’s reputation? Low-income customers until the next election, by which time it functioned as an independent country.
Castex, a man with a strikingly similar Marine Le Pen which he cannot possi- Had the equivalent happened 30 is often too late. India’s occupation of Kashmir may be
background minus the popularity that bly lose. He may be right. Personalisa- years ago and I, as an advertiser, were and the Wirecard fallout Second, “fail forward” means, using disputed, but it is not illegal, for it was
was putting the president in the shade. tion of power makes sense when lim- to void an agency relationship due to a The Financial Conduct Authority has Karl Popper’s terminology, that public approved by the Jammu and Kashmir
Out goes a moderate conservative who bering up for this fight. He still has the public scandal or to controversial form in being slow to act to protect low policy decisions are not falsifiable. Assembly in 1954. China’s occupation
was a mayor from Normandy but never most coherent agenda for modernising agency policies and practices that income and poor credit history Adverse consequences for ordinary of Tibet, by contrast, remains illegal to
before a minister. In comes another France and his strategic worldview is posed a reputational threat to my firm households. citizens become a virtue, not a vice, this day. China cannot, as an occupier,
moderate conservative, without minis- fast gaining traction in Europe. by implication, I would not only have a Payday lenders were allowed to and so the original policy decision is claim Ladakh by virtue of its illegal
terial experience, who is a mayor from But his vulnerability is the fracturing fiduciary duty to act but would likely boom before the misery they caused never wrong. Worse still, the lecture occupation of Tibet. Such right belongs
Gascony. Mr Philippe had at least been of his vote in the first round and the be contractually protected in doing so. was curtailed. The financial abuse of seems to suggest that oversight to only a legitimate government of
a member of parliament. Mr Castex, emergence of a competitor on the cen- What, after all, is environmental, customers locked into unauthorised committees must change their Tibet.
who helped with France’s exit from tre-right, even if Mr Philippe looks set social and corporate governance (ESG) overdrafts took years to be tackled. oversight criteria to collude with this Simren Kaur
lockdown, is an experienced civil serv- to stay loyal for now. The greens now strategy about but reaching new Now there is Wirecard (Report, July paradigm. Jalandhar City, Punjab, India
ant, highly admired by France’s tech- have real momentum and are challeng- consumers through assurances that 3). More than half a million customers Mr Gove does admit that lessons
nocracy but unknown to the general ing Mr Macron’s record on the environ- suppliers haven’t used child labour, have benefited from the unique should one day be learned, but when Think of Barnier as
public. Mr Macron has appointed a ment and climate change. Part of their pesticides, blood minerals or pay-offs services of accounts such as Pockit and the time comes to learn them, will we
managing director to implement his appeal is a different way of doing poli- to inspectors in their production the U Account that use Wirecard. have been told to “move on”? European, not French
decisions in the final two years of his tics: deliberation, devolution, commu- processes? Isn’t that, in effect, a boycott Many customers rely on their Daniel Sandelson Why is Michel Barnier labelled a
term. It is the president alone who will nity engagement. President Macron is of non-compliant suppliers? Even if account day to day for essentials and Chief Commercial Officer, DMD, “Frenchman” in your report “Barnier
take the credit or the blame. on a different wavelength. companies create ESG departments have no other means of payment. London SE1, UK hints at concession on ECJ role in trade
Arguably with this reshuffle Mr France is heading into a severe reces- and policies for self-serving reasons, When the FCA suddenly suspended accord” (July 3)? He’s an EU appointee,
Macron is resolving an inherent ten- sion and possibly mass unemploy- simply building brand awareness in Wirecard on June 26 it was disastrous Scotland’s border question doing an EU job. Elsewhere another EU
sion in the French constitution ment. Political affiliations, which Mr pursuit of profit, in the current era of for these customers. appointee, commissioner Valdis
between two heads of the executive. Macron stirred up in 2017, are still very social media transparency and the Given I raised the issue of protecting and coronavirus Dombrovskis, is not given a nationality
The set-up was designed for Charles de fluid. And now without a political 24-hour news cycle, it might be more these accounts back in 2017 — Nicola Sturgeon, Scotland’s first (EU sues members over dirty-money
Gaulle, who was preoccupied with prime minister to shield him, he is advisable to have no policy at all. expressing concerns about second class minister, posted on social media a UK failings). Being sufficiently European, I
France’s place in the world and left totally exposed. Niels Erich protection — last month’s FCA action coronavirus cases map from the might take a guess at where he comes
San Francisco, CA, US was not speedy and decisive so much as Financial Times, and highlights the from, but I don’t want to.
too much, too late. The watchdog has recent low Scottish rate at 0-5 per Is being a Frenchman a sign that
Counting whisky casks been caught off-guard yet again and by 100,000 of population. Excellent news. probably we shouldn’t trust what the
a situation that was easy to monitor, In so doing, she ignores that large EU’s Brexit negotiator was up to? We’re
was all part of the audit and thousands of consumers have swaths of the rest of the UK (in areas not reading the Daily Express, are we?

How Britain can level up You report (“Audit review head urges
swift reform after Wirecard scandal”,
July 3) the chief executive of Grant
suffered as a result.
Three actions are needed; the
FCA should ensure operational
totalling a population many times
greater than Scotland) boast precisely
the same low rate of infection.
Bernard H Casey
Frankfurt, Germany

during the virus recovery Thornton as stating that an audit was

“not designed to look for fraud”. Very
surprising. As a trainee chartered
resilience with industry support; the
government should help build up these
specialist accounts through the
Her post attracts more than a few
comments along the lines of “shut the
border and keep out the English”.
Corrections
accountant in Scotland in the 1980s I Department of Work and Pensions and Tragically, Covid-19 has resulted in c Primark, the fast-fashion retailer
Government’s pre-pandemic agenda can be repackaged as stimulus counted whisky casks, tapped some of the Treasury and far better scrutiny is shockingly high death rates north and owned by the UK’s Associated British
them and even got to taste the contents required of the regulatory gap to south of the border. Local lockdowns Foods, is headquartered in Dublin, not
Last week, Prime Minister Boris John- tivity jobs. A few of these can be found on occasion. As my then audit manager ensure the financial services industry is such as in Dumfries and Galloway, and the UK as wrongly stated in a Lex note
son repackaged his pre-pandemic in specialised manufacturing but more would say: “David . . . just to be sure all meeting the needs of vulnerable Leicester have to be the optimal way on July 3.
“levelling up” agenda as a post-Covid often in knowledge-intensive services. is in order”. I failed my accountancy customers. forward, rather than arbitrary division
recovery programme. He set the stage That means aiming for something bet- exams — and I now know why. Antony Elliott along a border the virus ignores. c Leonid Brezhnev was 75 when he died,
for Rishi Sunak, his chancellor, to ter than dormitory towns or lower-paid David Tennant Founder, the Fairbanking Foundation Martin Redfern not in his early eighties as wrongly
tackle the specifics of how the economy auxiliary service hubs for economic London SE27, UK Chalfont St Peter, Buckinghamshire, UK Melrose, Roxburghshire, UK stated in an opinion column on July 3.
can be jump started. But this week and centres in the biggest cities.
in the autumn, Mr Sunak will have to High-value-added activity presup-
go far beyond the proposals his boss poses a certain level of density — a criti-
has trailed if levelling up is to become
anything more than a slogan.
UK regional disparity is an economic
cal mass of knowledge jobs makes it
attractive for others to move there.
Improving the quality of life of resi-
A leading light of Coronavirus has prompted vast
monetary and fiscal stimulus.
Governments have embarked on
before they spend it. You and I need to
earn money or borrow it before we can
buy goods and services, but the US
It is plausible that if the
prescriptions were followed the tax
rate would have to be higher. Kelton
and political challenge that will take
more than one stimulus package to
dents too, many of whom emphasise
pleasant town centres as what they
monetary theory unprecedented spending sprees. Yet
there appears to be little pushback
government can simply spend money
into existence: the Federal Reserve
seems to think there are unused
resources the US can put to work. She
tackle. Productivity differences are
among the widest in Europe, even
most sorely lack, helps retain and
attract the talent that the most produc-
illuminates the from bond investors who buy up their
debt, partly because central banks
electronically credits bank accounts
with brand new dollars. The
advocates abolishing student debt and
establishing universal healthcare.
though redistribution takes off some of
the worst edges. The places suffering
tive businesses seek. A government
that listens will have to find money for
debate have set interest rates to zero, or
almost zero, and “printed” money.
government then taxes away the new
money or exchanges it for US
Much of this could be enacted under
the current regime of an independent,
the biggest decline over recent decades schools, cultural amenities and the In some corners, attention is turning Treasuries, gathering back the tokens inflation-targeting central bank: for
were also particularly likely to upend environment. It must also combat the to what this means for inflation and it creates. Spending thus comes before proof look to Germany, which has free
the established political order by vot- scourge of low pay and unpredictable national balance sheets when the crisis tax and borrowing, not after. universities and healthcare, as well as
ing to leave the EU in 2016 — and many incomes that make high-quality local Book review is over. How will public finances be This means the usual worries about fiscal prudence.
of them switched their Labour MPs for service trade unsustainable. brought back under control? Will the state not being able to repay the What MMT appears to offer that
Conservative ones in Mr Johnson’s The government has flirted with by Gavin Jackson central banks be forced to keep rates national debt are meaningless. conventional policymaking does not is
December landslide election victory. relocating civil servants out of London. low to stop the cost of debt service Instead, the concern should be the job guarantee. On one level this is
The bulk of the “levelling up” effort It should consider this more seriously. from absorbing more of the public inflation: we know the government is attractive, central banks consistently
focuses on investment in infrastruc- Crucially, regeneration will not come budget? Will inflation rear its head spending too much when prices get overestimate how low unemployment
ture in transport. The March Budget’s from routine clerical jobs or call cen- again? Into this debate comes out of control. The limits on its action rates can fall before inflation
promise to spend £640bn over five tres, but from high-quality jobs. Minis- Stephanie Kelton, professor of are the real resources of the economy, reappears. The guarantee would
years went some way towards address- ters should find ways to encourage the economics and public policy at Stony workers, materials etc. When they try remove this discretion and use the
ing years of under-investment in the setting up of private research institu- Brook University and former chief to employ too many of these composition of employment, not its
economy. But that is a big hole to fill; it tions in more places to seed an ecosys- economist on the US Senate’s budget resources, their price will increase. level, to control inflation. Yet there is
is not clear that Messrs Johnson and tem of knowledge jobs. committee. Appointed by former Expecting lawmakers to fine tune no certainty that it would create the
Sunak plan to expand this commit- Even a full portfolio of such policies presidential candidate Bernie Sanders, tax and spending to control inflation “good jobs” Kelton imagines. In a time
ment even though the pandemic has is not sufficient. Local ownership, and she is a leading light in modern seems a tall order. Kelton suggests a of stagflation, with inflation and
only made the need more urgent. knowledge about where advantages lie, monetary theory, an increasingly jobs guarantee funded by new money unemployment rising, it may become
Commendably, they have shown are key to success. This is not some- popular view in US leftwing circles. would act as an automatic stabiliser. as unpleasant a tool for trying to force
they know local networks matter as thing Whitehall’s heavy governance is The Deficit Myth Most concerns about the long-term When unemployment grows and down private sector wage growth as
much as big national projects; Mr John- good at promoting. Whether formally by Stephanie Kelton, John effects of Covid-19 stimulus are inflationary pressure is lower, conventional monetary policy.
son’s predilection for buses has a posi- or not, a better balance between local Murray, £20 misplaced if you cleave to Kelton’s government would create more The descriptive part of MMT is
tive side. But the bigger problem is and national decision-making is argument. Fundamental to the book, money. This would be cut back as full more appealing: that monetary
transport and connectivity is at best a needed. This is a tall order, and it is not which provides a clear exegesis of employment is reached. Both sovereigns really are currency issuers
necessary condition for levelling up, clear Mr Johnson understands the full MMT, is the idea that the US, and supporters and critics of MMT love to not users. But that insight is neither
not a sufficient one. For left-behind demands of the ambition he has set other “monetary sovereigns” like the portray it as a get-out-of-jail-free card, new nor particularly helpful as we
places to thrive once again current, as himself. But he is right about one thing UK, Japan, Australia and Canada, act allowing movements to sidestep the work out how best to balance growth,
well as capital, spending matters. — the current state of affairs leaves an as currency issuers rather than need for unpopular taxes. But there inflation and fiscal sustainability.
Regional recovery lies not in restoring a awful lot of human talent and potential currency users. are no estimates of how much the
golden age of factory jobs, but in to waste. The prize for getting regional Currency users must gather money proposals here would free up. The writer is the FT’s economics reporter
attracting investment in high-produc- convergence right is enormous.
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Monday 6 July 2020 ★ † FINANCIAL TIMES 17

Opinion

Will Merkel save the eurozone? Covid-19 brings

out the dark side
europe
unilateral fiscal retrenchment was fol-
lowed by years of austerity in Germany
significant in the sense that they strive
to prevent calamitous economic fallout.
would involve some complex trade-offs.
The Netherlands, Denmark, Sweden
signs of investing the necessary political
capital to change that. of a Caribbean
Wolfgang
Münchau
and the eurozone. During that period,
the eurozone generated unsustainable
imbalances — internally and against the
But the motivation behind the fund is
the same as the motivation behind the
European Stability Mechanism, the res-
and Austria remain opposed to payouts
in the form of grants. Ms Merkel’s
behind-the-scenes diplomacy is effec-
The situation in Germany is more
nuanced, but ultimately no different.
The Germans are in favour of a one-time
carnival city
rest of the world. cue umbrella set up in 2012. We are still tive and I am cautiously optimistic that act of solidarity, towards Italy in partic-
At the fateful meeting of EU leaders in limping from crisis to crisis, except that a deal can be made — either this month ular. The harrowing pictures from Ber-
June 2012, Ms Merkel rejected ideas for we get more and more medication. or after the summer holiday. If there is a gamo from the early period of the pan-
deeper political and economic integra- The recovery fund is certainly good deal, she would rightly deserve praise. demic made an impact. But once the Silvana

S
hould we let bygones be tion. This failure later prompted Mario medication to administer to combat the But it would be careless and compla- recovery funds start flowing, I doubt
bygones in the discussion on Draghi, the former president of the cent to reduce the judgment on Ms Mer- that any political party, with the excep- Paternostro
eurozone governance? Does it European Central Bank, to take owner- kel and the German presidency to the tion of the Greens, will fight the 2021
matter that Angela Merkel is
taking a different position on
ship of the future of the euro — a neces-
sary decision, but one that caused prob-
She has not shown many passage of the recovery plan, which will
need to be followed up by a strategic
German election on a promise for more
Europe.
moments of true leadership,

J
the eurozone today than she did during lems of its own, not least consecutive process of eurozone governance reform. Ms Merkel is an effective political ust before Colombia imposed
the sovereign debt crisis? My answer to
those two questions is no and yes
legal challenges from Germany.
George Soros once noted that Ms Mer-
and when she did, she took Indeed, without the lockdown the EU
would have by this time already started
operator. But she has not shown many
moments of true leadership in Europe.
one of the strictest lockdowns
in Latin America, Barranquilla
respectively. No, we should definitely kel only ever does as much for the euro- the decision unilaterally a conference on the future of Europe — a When she did, for example by opening was busy primping itself as if
not forget her role in the past crisis. And zone as is necessary for its survival. I first step towards changing the EU trea- the borders to Syrian refugees, she took for a debutante ball.
yes, the shift matters. think we are still in that position. The pandemic’s effects. And the EU would ties to ensure that the eurozone has the the decision unilaterally. Change in The occasion was the Inter-American
Ms Merkel bears her share of respon- Franco-German coronavirus recovery be remiss to reduce its dosage. But it instruments it needs to govern itself eurozone governance requires sus- Development Bank’s annual meeting
sibility for a situation that left the euro- plan was drawn up with that objective. would be a historical mistake to exag- effectively. If France and Germany were tained effort, and agreement. and Luis Alberto Moreno’s swansong
zone on the brink. It was her govern- Legally, it is based on emergency laws gerate its significance. to agree a joint position on the future Ms Merkel has reaffirmed repeatedly after more than a decade at its helm.
ment’s decision in 2008, right after the under EU treaties. So beware of assum- The first agenda item of Ms Merkel’s of the euro, that would indeed be a that she will leave politics after the 2021 This industrial and chaotic Caribbean
collapse of Lehman Brothers, to refuse ing a precedent: the recovery plan is EU presidency will be to get the recov- big deal. elections. The impetus to take the EU city was ready to do what it does best: be
joint European bank rescues. The fol- possible only because it is a one-off. ery fund agreed — along with the 2021- My sense of the debate in the Nether- and the eurozone to the next level will fun and irreverent and put on a carniva-
lowing year, it passed a constitutional The Franco-German proposal, and 2027 EU budget into which it is embed- lands is that there is no majority on the have to come from someone else. lesque show. Local authorities promised
balanced budget amendment, also the somewhat more generous version ded. This might happen during the next horizon for such a change. Nor does the 1.5m residents that financiers would
known as the debt brake. This act of from the European Commission, are EU summit, on July 17. Agreement Mark Rutte, the prime minister, show [email protected] fall in love with the city’s “happy” and
“creative” spirit. Then Covid-19 struck,
the meeting was cancelled and deflated
Barranquilla was “left with its hair curl-
FT montage
ers in”, as they say.

Ad boycotts
Three months later, Latin America is
the epicentre of the global pandemic
and Barranquilla has been hit so hard
that funeral parlours have delivered the
wrong corpses to family graves. The
usual explanation for why the city

alone will not

accounts for half of Colombian pan-
demic deaths is “social indiscipline”, a
lethal inversion of the informal spirit
that everyone banks on.
Informality is a global problem,

curb Big Tech

particularly acute in the tropics. But
Barranquilla, like much of the develop-
ing world, relies on it. More than half of
the city’s workforce ekes out a living as
best they can. Men trim private lawns
with rusty machetes, others on donkey-
pulled carts recycle cardboard. Women
sell fruit and sweets (caramel millet
cent of Facebook’s $70bn of advertising balls are called alegría, joy), others walk
business revenues comes from small businesses. under a blazing sun with portable
They have been decimated by the beauty salons. Every day, these workers
Rana pandemic. But when they return, it’s a
Foroohar fair bet they will spend whatever mar-
keting budgets they have left on digital
advertising, which is cheaper and more Informality is a global
efficient than other kinds. Yes, online problem, particularly
advertising has taken a hit. But the via-
acute in the tropics.

W
ill social justice lead to bility of the surveillance capitalism
economic justice? It is a business model, so called because it But Barranquilla relies on it
question raised by the commodifies personal data to make
Black Lives Matter profits, hasn’t changed. surveillance capitalism works today. companies to collect consumer data for scale and global reach to generate ride in crammed buses from the poorer
movement, which has Indeed, it is quite likely that the larg- The opacity of online transactions and a variety of uses and unlimited amounts disproportionate profits. But deglobali- southern neighbourhoods to the plush
spotlighted systemic racism in the US est consumer data collectors — includ- the power it gives to Big Tech is a key of time. sation and the world’s fragmenting tech- areas of the north. Social distancing,
and the economic inequality that ing Google, Amazon, and Facebook — reason why regulators in Europe and Enforcement of such rules would nological landscape will limit the ability even during a lockdown, cannot curb
accompanies it. But it is also a question will emerge bigger and more powerful the US want to open their algorithmic probably require algorithmic auditing. of companies to grow across borders: their informal habits, such as playing
for the corporate world more broadly — after the pandemic. The weighting of black boxes. Sherrod Brown, the most Interest in this has grown due to a Covid- witness India’s banning of Chinese social dominoes on sidewalks. On social
and in particular for Big Tech. the technology sector in the S&P 500, senior member of the US Senate com- 19-related boost in the use of artificial media firm TikTok. Meanwhile, in the media, viral videos show friendly police
Social media companies such as Face- buoyed by a handful of large companies, mittee on banking, housing and urban intelligence and automation to manage US, the heads of Apple, Facebook, patrols being pelted with rocks after
book, Snapchat and Twitter are losing is near 30 per cent — a 20-year high. affairs (and a fighter for more transpar- credit scores, loan applications, hiring Google and Amazon will convene at the they asked such gatherings to disperse.
advertising dollars from large compa- So while boycotts draw attention to ency and tougher financial regulation decisions and the like. Avoiding “algora- end of July in Washington DC for anti- The mayor has sent in soldiers, wearing
nies worried about being associated issues such as toxic content, privacy and after the 2008 crisis) has proposed legis- cism” may seem to be about social jus- trust hearings, the first big debate about hazmat suits under camouflage vests.
with the inflammatory content pub- civil liberties, an equitable sharing-out lation that would change the dynamics tice. It is also about competition. US competition policy in half a century. This behaviour is a product of the
lished on these platforms. However, it of digital wealth requires other things. of data collection. Companies complain that if regula- The final tailwind to Big Tech’s eco- unequal opportunities and socio-
will take far more than an ad boycott The most important is more transpar- It aims to shift the burden of responsi- tors force them to open their algorith- nomic power has been tax policy. None economic disparities of the developing
around hate speech to curb the eco- ency. Like big financial institutions, bility away from consumers, who have mic black boxes and change their busi- of Democratic presumptive nominee world. It boils down to an attitude that
nomic power of Big Tech. large consumer technology companies to read 4,000-word privacy policies and ness models, then the ease and utility of Joe Biden’s proposals would increase views rules as conventions to be bent,
For starters, the boycott may be just traffic in information. They sit in the click “I agree”. As well as banning facial their services will fall. Senator Brown’s taxes on the tech sector specifically, as avoided or plain ignored. It is not just
an opportunistic way to do some virtue middle of an hourglass, viewing every recognition technology, it would also answer is: “Silicon Valley should the UK and some European countries the poor — who have no choice. The
signalling when marketing budgets are transaction that moves through with a confine data monetisation to single respond by doing what it has always have proposed. Yet it is thanks to rela- more affluent are as guilty. Plus, they
already down. Facebook chief executive clarity unavailable to consumers, com- transactions, rather than allowing done best: innovating.” He makes an tively low tax rates that Big Tech keeps a live with the privilege of what is known
Mark Zuckerberg is betting on that, petitors or regulators. analogy to the environmental disasters chunk of its corporate profits. If we want as having palanca, levers to be pulled.
reportedly telling employees, “my guess That information asymmetry gives of the 1960s, which ultimately led to the real economic justice, I suspect we will Local gossip holds that the virus was
is that all these advertisers will be back
on the platform soon enough”. Whether
them a problematic advantage. As
Adam Smith put it, for markets to be
The viability of the Clean Air Act, the Environmental Pro-
tection Agency and lower emission
need a digital dividend tax too. Corpo-
rate boycotts make a political statement.
introduced when guests arrived from
Spain for a wedding. Despite displaying
or not he is right, boycotters including fair and efficient, parties on both sides business model of so-called vehicles — a trend that reached an apex It will take more than that to have an symptoms, they are said to have partied
Starbucks, Coca-Cola and Unilever
make up a small share of overall social
of a transaction need equal access to
data and a shared understanding of what
surveillance capitalism recently when Tesla became the world’s
most valuable automaker.
impact on Silicon Valley’s bottom line. all night. In June, this year’s carnival
queen, in effect the city’s ambassador
media ad revenues. More than 70 per is being exchanged. That is not how hasn’t changed As well as opacity, Big Tech relies on [email protected] and always a member of the elite, spec-
tacularly busted the stay-at-home rule.
The It Girl went on a road trip with a
former holder of the title. When the
police stopped their SUV and asked for

The UK should bar Huawei from its 5G network the authorisation now required to
travel, levers were pulled and a call to a
highly placed friend was made, all in
front of the camera. The queens taped
the encounter, in that emblematic life-
meant we could assure its supply chain. to decide whether to go ahead with its ageable on its own. But to that must be one another. Even within the EU there is-a-joke, and posted it on Instagram.
John The Trump administration’s motives planned £1bn Cambridgeshire facility. added a series of other recent actions. was no attempt at solidarity when a Here lies the tragedy. The frivolity
Sawers for trying to destroy Huawei can be
debated. But the latest US sanctions, at
Or if Mr Johnson uses the moment to set
out a comprehensive strategy that puts
These include sanctions on Australian
products after Canberra proposed an
country was put in the deep freeze for
supporting human rights defenders in
hailed as this city’s comparative advan-
tage has created hell instead. It is also
the end of June and last week, mean that limits on Chinese investment in the UK. independent investigation into corona- China or meeting the Dalai Lama. Dif- the essence of carnival: behind the
reliable non-Chinese suppliers to Hua- I suspect the UK government — preoc- virus’s origins — an entirely reasonable fering approaches from the US and the prankster’s mask lies a darker spirit.
wei can no longer work with the com- cupied by Covid-19, the deep economic suggestion; sinking Vietnamese fishing EU encouraged Beijing further. But I Alex Saab, arrested for being an alleged

T
he last six months have pany. UK intelligence services can recession and the Brexit negotiations — boats in the South China Sea, as Beijing think this is about to change. New lead- fixer for Venezuela’s dictator Nicolás
revealed more about China therefore no longer provide the needed has no bandwidth to come up with a builds up its military infrastructure in ership in the US would further help cre- Maduro, built a mansion here. The dis-
under President Xi Jinping assurances that Chinese-made equip- considered, new strategy. But its first disputed waters; cross-border attacks ate a common front that includes Japan, order also means the situation through
than the previous six years. ment is still safe to use in the UK’s tele- response on Hong Kong, especially its against India — to intimidate New Delhi South Korea and India, as well as the US, much of the Americas is going to get
China is overplaying its coms network. from working with the US, Japan and EU, UK, Canada and Australia. worse. The World Health Organization
hand and giving western leaders no There are now sound technical rea- Australia on a common China approach, We must be careful not to go so far as has warned as much.
option but to stand up to it. Combined
with the tough US sanctions imposed on
sons for the UK to change January’s deci-
sion, which would have allowed Huawei
Intelligence services can no and to bolster Chinese interests in Paki-
stan; and, most recently, Hong Kong,
to turn China into an enemy. We need its
engagement on crucial issues such as
In the meantime, the IDB has suffered
its own travails. The meeting will now be
Chinese companies, Beijing’s actions to have an up to 35 per cent stake in the longer assure that Chinese where Beijing’s frustrations with per- managing climate change and regulat- held virtually. And, ignoring the custom
have also shifted the parameters on
Huawei’s potential involvement in Brit-
UK’s 5G market, and exclude the com-
pany instead. The security assessment
equipment is safe to use in sistent political dissent led it to impose a
draconian national security law.
ing international trade.
But China’s leaders should also under-
that the bank’s chief is Latin American,
US president Donald Trump is pushing
ish telecoms. is now different because the facts have Britain’s telecoms network Beijing seems determined to bring stand that they will pay a price if they a Cuban-American for the job. All this
In January, I thought the UK had changed. It helps Boris Johnson that its Hong Kong to heel, and its two other res- try to impose their system and stand- just moves Latin America’s future down
found a reasonable balance in limiting conclusion points in the same direction open-door offer to almost 3m Hong tive regions, Xinjiang and Tibet. The sig- ards on other countries, be that through another peg.
Huawei’s role in Britain’s 5G network, as the political pressure from Conserva- Kong citizens, suggests there will be a nals to Taiwan are ominous. Beijing no the Belt and Road Initiative, by manipu- There is still hope. Guayaquil in Ecua-
while not excluding it entirely. Huawei tive members of parliament. Report- sharper-edged approach. longer has a middle of the road lating economic leverage for political dor has been able to turn its own tropi-
equipment was thoroughly checked by edly, a fresh decision on Huawei is It is important that all western approach to reunifying the Chinese ends, or by more forceful military or cal social indiscipline into discipline and
a testing facility under the control of UK expected in the next two weeks. democracies now unite in standing firm nation, given its abandonment of the intelligence actions. Only unity among beat one of the worst outbreaks in the
intelligence services. Huawei’s use of The interesting question is whether against China’s more aggressive “one country, two systems” concept in China’s main economic partners will developing world.
reliable suppliers, such as the Taiwan Mr Johnson’s decision to exclude Hua- approach. Beijing’s arrogant “wolf-war- Hong Kong. achieve that.
Semiconductor Manufacturing Com- wei from UK 5G will be justified purely rior” diplomacy surrounding the Cov- China learnt over the years that it The writer’s most recent book is ‘Solitude
pany, for crucial components also on technical grounds, and leave Huawei id-19 outbreak might have been man- could play western countries against The writer is a former chief of MI6 & Company’
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18 ★ FINANCIAL TIMES Monday 6 July 2020

Ties that blind

Businesses can no longer afford to
be sentimental about their roots
Z WORK & CAREERS

It is time to say As people gingerly

farewell to the
great scourge
prepare to return,
shared workstations
are off the menu
Mark Waugh/Alamy
{ Supercomputers: a war
to be top flop nation }
of hot-desking The world’s fastest
supercomputers
Moore’s Law: transistors per
microprocessor
RMax (petaflops/sec) Number of transistors that fit
into a microprocessor
Supercomputer 10bn
Fugaku Japan

Summit US 1bn
Sierra US
100m
Sunway
TaihuLight China
10m
Tianhe-2A China
1m
HPC5 Italy

Selene US 100,000

Frontera US 10,000
Marconi-100 Italy
0
Pilita Clark 0 100 200 300 400 1971 80 90 2000 10 17

Business Life Sources: Top500.org; Our World in Data, karlrupp.net

In one leg of the race for tech computers are capable of doing a billion
supremacy, superpowers China and the billion calculations a second — one
Banks of roomy “superloos”. Phone The practice has of course been London with a relatively new office are in no rush to return to the office US have been pipped by a third exaflop. Design News puts it this way:
apps that squawk to remind you to popular in spots with pricey property, where large areas of floor space were full-time. contender — Japan. to input 1+1+1 into your calculator once
swab down your desk. A ban on taking such as London and Sydney. But can it specifically designed to accommodate That makes it hard to imagine Japan’s Fugaku supercomputer per second without pausing to eat or
the lift upstairs more than twice a day. survive a virus so new that scientists hot-deskers. remote working ever being the outlier elbowed out America’s Summit as the sleep will take 31.7tn years. For the
This is just a smattering of what are still studying exactly how long it Like a lot of other big firms, its staff it was before the pandemic. most powerful supercomputer, exascale computer, it needs but one
experts tell me the office of the very lasts on plastic versus paper, let alone went home in March as the country Some small London companies have according to June’s Top500 ranking. second. America’s Aurora, due next
near future might look like in the age a computer keyboard? Not right now began to lock down. Now, as people already decided to ditch big offices for Fittingly for these pandemic times, year, targets a speed of 1.5 exaflops.
of Covid-19. in London, it seems. gingerly prepare to return, shared smaller spaces that they plan to use for Fugaku is devoting its considerable All these mega computers are
A superloo, for avoidance of doubt, The latest advice to employers from desks are off the menu. meetings and other catch-ups. might — 415.53 petaflops, or a essentially a bunch of linked processors
is another name for a toilet cubicle the British government is clear. Hot-desking at the moment is If more follow, it is not impossible to quadrillion floating-point operations — 36,000 in Summit’s case. Big, energy-
that has a basin and hand-dryer in it “Workstations should be assigned to “incredibly difficult”, one person there imagine office costs easing which could per second — to matters of health and guzzling kit is expensive and so they
and, like the app and the lift rationing, an individual and not shared,” it says. told me last week. Desks were being in turn lower the pressure for hot- the environment. are usually collaborations between
I can see it makes socially distanced If sharing must be done, it should be allocated. This person thought it desking as we know it. That is pretty novel. Supercomputers governments, university labs and the
sense. among “the smallest possible number possible hot-desking might return, but In other words, people might still are often seen as the brains of a nation, private sector. Washington is backing
But after talking last week to some of people’’. if it does I suspect it could be in a very share a desk, but only briefly when playing a role in national security and its three exascale computers to the
of the building managers and Employers will usually need to be different form. they visit the office from their main technological one-upmanship. China tune of $1.8bn. Fugaku is itself a joint
executives who have been trying to “avoiding use of hot desks”, it adds. If That bank, like businesses across the workplace: their home. still leads in sheer numbers, with 226 — development by Japan’s Riken, a
figure out how to safely reopen large that is impossible in, say, a call centre world, has discovered to its surprise All this might be wishful thinking. If twice as many as America. The others in publicly funded research institute, and
offices, I am daring to hope for or training area, then any shared desk that entire divisions can operate with a vaccine or drug can conquer the the top five, Japan, France and the UK, local computer specialist Fujitsu.
something far more riveting. or equipment should be cleaned before everyone working from home, at least virus, perhaps we will rush back to our trail well behind. That support is serendipitous since
Finally, blessedly, it is possible to anyone else starts using it. for a few months. frantic old lives, hot desks and all. Progress in the field is turbocharged. lofty aims and bragging rights have
imagine the end of one of the great This guidance is hard to ignore. I Before March, if anyone had told me In the meantime, I am taking heart Today’s smartphones trounce the proved easier to come by than actual
scourges of modern working life: the know of at least one big bank in the Financial Times could print a daily from engineers such as Neil Pennell, supercomputers of the 1990s. A similar profits from the manufacturing itself. In
hot desk. newspaper under such circumstances, chair of the technical affairs progression has occurred in the latter the mid-1990s Cray, the grandfather of
Stripping people of an allotted desk I doubt I would have believed it. Yet it committee at the British Council of area. China’s Sunway TaihuLight, which supercomputers, was forced to file for
and forcing them to hunt for a new “ Stripping people of turns out that it can. Offices. topped the list in 2016 but is now only bankruptcy. Its later iteration posted
place to perch each day is grim Not every company will follow the “Hot-desking isn’t dead,” he said last
enough. It has been made far worse in
an allotted desk and likes of Twitter and let everyone work week, “but it is perhaps in intensive
fourth, does not have even a quarter of
Fugaku’s power. The latter is 2.8 times
net losses in each of the almost three
years before it was purchased by HPE,
recent years by companies that forcing them to hunt from home for good. Yet polls taken care.” as fast as the IBM-built Summit it Hewlett-Packard’s enterprise division,
pretended to be doing it to boost during the pandemic in the UK, Japan
collaboration, not to cut costs on office
for a new place to and the US suggest sizeable slabs of the [email protected]
usurped. Yet machines now being built
will dwarf even these speeds. Exascale
in 2019. Genius does not come easy,
even in the field of supercomputers.
space. perch each day is grim ” workforce either like home working or Twitter: @pilitaclark

CROSSWORD
No. 16,521 Set by ZAMORCA
        ACROSS 27 Main line during disorder is
1 Can briefly attempt to acquire continuous (8)
self esteem in class (8)
  5 Tears fringes off rug to see DOWN
insect (6) 1 Part of magic act uses plant
 9 Regularly bring in sparkling (6)
 
wine to entertain large street 2 Worthwhile to net bucks and
party (8) withdraw from fight (5,2,3,5)
10 Harry’s smalls wearing well (6) 3 Good skin’s hard work! (5)
  
12 Single woman journalist’s 4 Terrible driver takes zero
following peacekeepers (5) notice cutting right hand turn
 13 Tramp accepts employment at going north (4,3)
home on the water (9) 6 A labyrinth’s intended, it’s
  
14 Finish letters from friend in said, to create awe (9)
 Greece (6) 7 Riding lovely horse following
16 Finally lost sanity in betrayal direction for seaside town
  of the state (7) (6-5-4)
18 Game of strategy’s too 8 Welcome to enter gig free (8)
complicated to grip male 11 Stop queen having sex (4)
  students (7) 15 Misapprehensions when setter
20 Don’t slouch, son! These replaces article in references
exercises strengthen abs (3-3) (9)
  22 Service request: allow America 17 Idiot put carbon under top
to finance hosting Russian secret note on page of old
leader (3,2,4) sized paper (8)
23 A quiet brook’s long lost part 19 Lady’s fingers get approval by
JOTTER PAD of spring (5) recognised artist (4)
24 Dodgy tradesman’s bully with 20 Way to secretly watch agent
young lad (6) crack (7)
25 Party worker after a short 21 Establish first class record
time is in command (8) stacking up dishes (6)
26 Spoil sculpture with hard 23 Mao and Xi reformed in
varnish (6) principle (5)
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fm
THE AUTHORITY ON GLOBAL FUND MANAGEMENT | FINANCIAL TIMES | Monday July 6 2020

Isabelle Scemama
Axa Alts chief
focuses on building a
green future
PAGE 4

Is the dream Brexit risk

over for UK
value managers? rises for
Value investing has enjoyed a
cult-like popularity in the UK
UK asset
thanks to star managers
including Tony Dye, Anthony managers
Bolton and Neil Woodford. But
the downfall of Mr Woodford
SIOBHAN RIDING
has cast a shadow over this
once celebrated style. Value The risk of UK funds being frozen out
stocks had already endured of the European market at the end of
prolonged underperformance the year has risen after Brexit negoti-
relative to growth companies ators missed a milestone aimed at
before their woes were securing market access for the City of
compounded by a wave of London.
dividend cuts. More investors The EU and the UK failed to meet
and managers are now likely to their June 30 target date for complet-
retrench from the style. ing assessments of each other’s regu-
PAGES 6-7 latory regimes for financial services —
a prerequisite for allowing mutual
market access post-Brexit.
The missed deadline in the so-

BlackRock, H2O and Invesco top called “equivalence” regime has

sparked fears of prolonged uncer-
tainty and disruption for Britain’s
£9tn asset management sector at a

worst-performing funds ranking time when groups are already grap-

pling with the fallout from the coro-
navirus crisis.
Patrick Thomson, chief executive
of JPMorgan Asset Management’s
in the current lockdown and pan- business in Europe, the Middle East
ATTRACTA MOONEY Europe’s worst-performing actively managed funds* demic,” she said. and Africa, said that a no-deal Brexit
Returns, Jan-Jun 2020 (%)
Funds run by BlackRock, H2O and “But in lots of markets that hasn’t would create “more complexity” for
-40 -30 -20 -10 0
Invesco have topped a list of the proven true and in many cases active fund companies. That scenario has
worst-performing investment prod- BlackRock Global Funds Latin American A2 USD fund managers have actually under- become more likely as a result of the
ucts in Europe so far this year, down H2O Multibonds IUSD C performed markets — some quite UK’s decision not to utilise the option
Ninety One GSF Latin Amer Eq A Acc USD
by more than a quarter as the coro- considerably.” to extend its transition period beyond
BlackRock Global Funds World Energy A2 EUR
navirus pandemic battered active Two funds from Invesco — the the end of this year.
JOHCM UK Dynamic B Acc
managers. Income and High Income funds — “We have got enough on our plate
JOHCM UK Equity Income A GBP Acc
According to Morningstar, the also ranked among the worst per- with the Covid-19 recovery and
Invesco Income UK Inc
data provider, BlackRock’s BGF formers this year in Europe, suffer- understanding if markets have got
Invesco High Income UK Inc
Latin American A2 fund took the ing as companies slashed dividends ahead of the economic indicators,” he
H2O Moderato EUR-I C
title of the worst-performing fund, in response to the pandemic. said. “Given the pressure the asset
Man GLG Undervalued Assets Profl Acc C
down 37 per cent in the first six The two Invesco funds were once management industry is already fac-
months of 2020. Another BlackRock * Open-ended actively managed funds with at least €1bn in assets, domiciled in Europe hugely popular, but have struggled ing in terms of fees and [the need to
Source: Morningstar
fund, BGF World Energy A2, also with years of underperformance invest in] technology, to introduce
appeared among the worst 10 per- after Mark Barnett took over their further uncertainty would not be
formers in terms of investment management from Neil Woodford helpful at this time.”
returns.
Europe’s best-performing actively managed funds* when he left to set up his ill-fated Mr Thomson added that UK asset
Two H20 products also featured, Returns, Jan-Jun 2020 (%) investment business. In May, managers needed clarity on future
including the H2O Multibonds fund 0 20 40 60 Invesco announced Mr Barnett was market-access rights under the
that lost 36.2 per cent. The Morning- LF Ruffer Gold O Acc leaving the $1tn asset manager, with equivalence regime. “[We need to
star data looked at open-ended Baillie Gifford American B Inc James Goldstone and Ciaran Mallon understand] what the rules are and
funds with at least €1bn in assets at MS INVF US Growth I named as new managers of the what the implications are for us so
the end of June that were domiciled LF ACCESS L/T Glbl Gr Invmts A GBP Inc funds. that we can start to plan for the
in Europe, including the UK. Baillie Gifford L/T Glb Gr Invm B Acc The 10 worst performers also future.”
About two-thirds of the more than Mercer Flexible LDI£ Fx Enh Mtch 3 M-5£ included two UK-focused funds from Asset managers’ Brexit concerns
Mercer Flexible LDI£ Rl Enh Mtch 3
1,700 actively managed funds Morn- JO Hambro Capital Management, centre on the loss of passporting,
Nikko AM ARK Disruptive Innovation A USD
ingstar examined delivered negative and one fund each from Man Group which allows them to sell funds easily
Baillie Gifford Global Discovery A Acc
returns this year, meaning investors BlackRock Gold and General D Inc
and Ninety One, the investment across the EU. But a cliff-edge Brexit
have lost money. Active managers house formerly known as Investec with no equivalence ruling in place
select stocks or bonds rather than * Open-ended actively managed funds with at least €1bn in assets, domiciled in Europe Asset Management. would also have implications for how
track an index. Source: Morningstar Invesco, BlackRock, H2O and Man groups structure their sales teams
Laura Suter, personal finance ana- Group declined to comment. and where they trade shares.
lyst at AJ Bell, the investment plat- year. “Most investors would expect shine, being able to navigate the JO Hambro said its UK Dynamic Chris Cummings, head of UK trade
form, said active managers had “not during times of market turmoil that worst of the market falls and dodge and UK Equity Income funds had body The Investment Association,
covered themselves in glory” this is when active managers would the companies that look likely to fail continued on page 2 continued on page 2
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2 | FTfm FINANCIAL TIMES Monday 6 July 2020

NEWS

‘Pre-pandemic
excesses’ raise
odds of collapse
SHAREHOLDER PAYOUTS tral bank intervention,” he
Many groups spent said. Companies have slashed
more on distributions dividends in recent months as
they grappled with the effects
than net income of the economic shutdown.
Fund manager Janus Hender-
Attracta Mooney son has estimated that up to
More than a quarter of the $500bn of cuts to dividends
UK’s biggest listed companies could take place this year glo-
and a third of large US public bally, depriving private inves-
businesses spent more on divi- tors of income streams.
dends and buybacks in 2019 The study, however, found John Paulson plans to convert his hedge fund into a private investment office — Rick Maiman/Bloomberg
than they generated in net that many companies had
income, a move that has left
many groups at greater risk of
collapse.
made large shareholder distri-
butions without sufficient cash
reserves in place to do so. On
Paulson closes to outside investors
“Pre-pandemic excesses”, average, S&P 500 companies
where management focused spent 87 per cent of their net Ortenca Aliaj — New York returns”. He is the latest high- trading milestones, including assets under management
on maximising short-term income on dividends and buy- profile industry figure to take the subprime crisis and profits from a high of $36bn in 2011 to
shareholder payouts, have backs between 2009 and Sep- John Paulson, the billionaire his fund private. made during the recovery. “I $10bn as of January. Less than
“hollowed out” company tember 2019, while Euro Stoxx investor who rose to fame Hedge fund manager Louis look forward to continuing as a quarter of the money cur-
reserves, according to a study 600 groups paid out 72 per during the financial crisis Bacon told investors in his 30- an active participant in finan- rently managed by the firm is
from the University of Shef- cent of net profits between with a lucrative bet against US year-old Moore Capital Man- cial markets,” he wrote. from outside investors.
field, Queen Mary University 2010 to 2018. subprime mortgages, is clos- agement last year that he Mr Paulson launched his Mr Paulson is part of those
of London and Copenhagen In order to make those pay- ing his hedge fund to external would return outside capital, firm in 1994 but he rose to hedge fund managers who
Business School. This has left outs, companies focused on investors after years of lack- citing fee pressure and a diffi- prominence more than a dec- made their fortunes before the
many businesses struggling to boosting so-called distributa- lustre performance. cult trading environment. ade later when he made an post-financial crisis quantita-
cope with the fallout of the ble reserves, according to the “After considerable reflec- Mr Paulson said in January estimated $20bn on the col- tive easing and government
coronavirus pandemic. study. In some cases, compa- tion and careful thought, Paul- last year he would consider lapse of the subprime mort- intervention that many claim
The report found that 28 per nies brought forward income son & Co will convert into a pri- turning his firm into a family gage market, dubbed the has depressed their returns
cent of FTSE 100 companies, and pushed back costs to boost vate investment office and office managing his personal greatest trade ever. and inflated asset values.
37 per cent of S&P 500 firms their distribution pot. return all external investor wealth “in the next year or In the years after the crisis, Several peers have decided
and 29 per cent of the S&P The research also found that capital,” Mr Paulson wrote in a two”. Paulson & Co closed its he struggled to match this suc- to close their firms to outside
Europe 350 paid out more in businesses took on low-grade letter to investors seen by the London operations shortly cess. Failed bets on healthcare investors, including Leon
shareholder distributions than debt — risking refinancing and Financial Times. “Recent vola- after. stocks, pharmaceuticals and Cooperman of Omega Advi-
they generated in net income liquidity problems in the cur- tility notwithstanding, I am In his letter Mr Paulson gold prompted investors to sors. Paulson & Co declined to
in the last available accounting rent climate if the debt is proud of our long-term highlighted some of the firm’s flee, cutting Paulson & Co’s comment.
year. Professor Adam Leaver downgraded. There had also
from Sheffield University been a build-up of intangible
Management School said that assets on company balance
while the pandemic looked
like an “exogenous shock”, the
sheets, which were vulnerable
to writedowns that could push BlackRock and rivals Brexit risk rises for
in worst-performer list UK asset managers
research showed that “man- businesses into negative share-
agement decisions over the holder equity. “The serious-
past decade have made com- ness of the coronavirus effect
panies vulnerable”. should not be downplayed, but
“Their focus on short-term the bailouts are needed partly continued from page 1 was hit by the sell-off in Brazil continued from page 1 have left things until the last
payouts is going to make the because firms were run in been hit because of their bias at the start of the year, the said that fund groups had minute to see what happens,”
recession even deeper, costs to ways that exposed them to for so-called value stocks. asset manager said perform- ramped up their no-deal he said. “But passporting into
governments much larger and procyclical risks in down- Value stocks trade at a lower ance picked up significantly in Brexit planning over the past Europe is going to become very
will extend the need for cen- turns,” the researchers said. price compared to their funda- the second quarter with the month after prioritising the difficult if we crash out.”
mentals, such as earnings. fund delivering 29.73 per cent pandemic earlier in the year. The question of the UK’s
“The Covid-19-related mar- net of fees. He reiterated the IA’s call for future access to the EU has

fm
ket sell-off proved particularly About two-thirds of passive UK and EU policymakers to been complicated by the coun-
acute for value stocks, funds that Morningstar exam- “push for equivalence deci- try’s stated desire to diverge
compounding the underper- ined also generated negative sions as quickly as possible”, from European financial regu-
formance of value stocks in returns. But the analysis also warning that if the current lations in certain areas. The
recent years,” the company found fewer examples of uncertainty “were to drag on EU’s chief Brexit negotiator,
Production Elena Losavio said. outsized positive returns for too long, we could see Michel Barnier, took a hard
Tel: +44 (0) 20 7873 3877
email: [email protected] It said while the short-term among index or exchange [fund managers] moving more line on this last week, accusing
Editor Peter Smith
Tel: +44 (0) 20 7775 6382 Advertising Tom Da Costa
performance had suffered traded funds compared to resources out of the UK and the UK of demanding regula-
email: [email protected] Tel: +44 (0) 20 7873 4569 this year, “both funds have active funds. into the EU”, increasing costs tory divergence while “trying
email: [email protected]
Investment correspondent excellent long-term track The best-performing for end savers. to keep as many single market
Attracta Mooney
Tel: +44 (0) 20 7775 6237
FINANCIAL TIMES records and both investment actively managed fund was the Jeremy Soutter, UK chief of benefits as it can”.
Bracken House, 1 Friday Street,
email: [email protected] London EC4M 9BT teams are excited by the Ruffer gold fund, which fund service provider Carne, Fund executives are divided
Reporter Chris Flood
+44 (0) 20 7873 3000 potential within their portfo- returned 55.7 per cent, while said that while most large asset on how much the UK should
Tel: +44 (0) 20 7873 3892 © The Financial Times Limited 2020. lios”. the best performing passive managers already had parallel stray from EU rules. According
email: [email protected] Reproduction of the contents of FTfm in any
manner is not permitted without the Ninety One said markets in fund was BlackRock’s iShares businesses in the UK and EU, to Mr Thomson, the British
Reporter Siobhan Riding
Tel: +44 (0) 20 7873 4469
publisher’s prior consent. “FINANCIAL TIMES”
and “FT” are registered Trade Marks and Latin America have been vola- Gold Producers ETF, which time was running out for government should pursue
email: [email protected] Service Marks of the Financial Times Limited tile during 2020. While its fund returned 22 per cent. smaller groups. “Some of them close alignment.
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FINANCIAL TIMES Monday 6 July 2020 FTfm | 3

NEWS

Court ruling ties SEC’s hands over investor fraud

INSIDER Trading have been harmed can be diffi- “need to rethink” its approach
Liu case presents cult, particularly if they are if it was no longer able to send
individual investors in pooled money to the Treasury or to
fresh challenge to vehicles, such as mutual funds, identify wronged investors.
US regulators’ role affected by scams including “There are questions if a vic-
insider trading. tim even exists in cases involv-
Chris Flood “The impact on disgorge- ing insider trading or the for-
US regulators face new restric- ment in insider trading cases, eign corrupt practices act,”
tions on their powers to force in particular, will be hotly said Mr Kelly.
fraudsters to repay illegal debated. Victims of insider One remedy might involve
gains after a Supreme Court trading are typically difficult paying any disgorgements to
ruling that will affect victims to identify and thus unlikely to an investment fund or the
of insider trading, market receive any disgorgement manager of a pooled vehicle.
manipulation and accounting award that the SEC distrib- “If the offence happened in
fraud. utes,” said Charles Clark, a the past, this approach raises
The Securities and partner at the lawyers Schulte the question of whether newer
Exchange Commission wins Roth & Zabel. investors are receiving a wind-
disgorgement orders — repay- New avenues for defendants fall payment instead of the vic-
ments from wrongdoers — to challenge cases brought by tims being compensated,” said
worth more than a billion dol- the SEC have been opened by Mr Kelly, a former co-chief of
lars a year from federal courts. the Supreme Court, which the SEC enforcement division’s
The SEC can also impose fines ruled that disgorgement The Supreme Court ruled In addition, a defendant fundamentally reshape the asset management unit.
as punishment. awards should not exceed a that the SEC should return cannot be held liable for any amount the SEC can obtain as The SEC also uses disgorge-
The Supreme Court ruled wrongdoer’s net profits. Legiti- disgorged funds — Saul Loeb/AFP trading profits earned illegally disgorgement in enforcement ment awards to pay whistle-
late last month in a case known mate business expenses must by others. This raises ques- actions,” said Mr Clarke, who blowers that help to investi-
as Liu vs SEC that the regulator be deducted from any repay- tions about so-called “tipper- led the investigation into the gate crimes. It has paid more
should return disgorged funds ments. But the question of tippee” relationships where a Enron scandal as a senior than $500m to whistleblowers
to investors that have suffered when business expenses are defendant has passed on sensi- member of the SEC’s division but the Supreme Court ruling
harm rather than send this “legitimate” remains unclear tive information but did not of enforcement. casts doubt over whether
money to the US Treasury. and will be contested in future profit directly from unlawful Anthony Kelly, a partner at these awards benefit wronged
Identifying victims that cases brought by the SEC. behaviour. “The Liu ruling will Dechert, said the SEC would investors.

Liontrust to buy Axa unit

Architas UK for up to £75m
Chris Flood advisers through the scale of price. Numis estimated that
the combined businesses and Liontrust would pay a valua-
Liontrust has agreed to pay up the strength of the merged tion multiple of 10 times pro
to £75m to buy the Architas UK investment team.” forma operating earnings after
investment business from Axa, The acquisition, which is tax, assuming that transaction
the French insurer, in a strate- expected to be completed this and restructuring costs are
gically important deal that will year and is subject to regula- included in the £75m price.
boost the London-listed fund tory and shareholder approval, “[It] will substantially
manager’s asset base by more will primarily be funded via a increase Liontrust’s presence
than a quarter. placing of 5.09m new shares in the multi-asset sector, a core
The acquisition should help with the aim of raising about and strategically important
Liontrust compete more effec- £66m, assuming a sale price of sector in the UK retail market,”
tively against larger rivals at a £13 per share. said Mr McCann.
time when the coronavirus Liontrust shares closed John Husselbee will head the
emergency has damaged the strongly on Friday at £14.30 for enlarged Liontrust multi-asset
long-term growth prospects of a weekly gain of 4.8 per cent. team, which will merge with
the entire UK investment David McCann, an analyst at the Architas UK fund manage-
industry. Numis Securities, said Architas ment team. Sheldon Macdon-
The deal would increase was an expanding business ald will join as deputy head of
Liontrust’s assets under man- with organic growth of about 4 multi-asset and the Architas
agement and advice by £5.6bn per cent annually and Lion- UK distribution team will also
to £25bn, adding new multi- trust had paid an attractive move to Liontrust.
asset and multi-manager capa-
bilities to its fund range.
John Ions, Liontrust chief
executive, said the company
could now better meet the
requirements of financial
advisers and their clients.
et Management
“Financial advisers are key
clients for Liontrust because of
the responsibility they have as
guardians of people’s savings.
Buying the Architas UK invest-
ment business Asset Management
will expand our
distribution among financial Liontrust shares rose 4.8 per cent to £14.30 last week
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4 | FTfm FINANCIAL TIMES Monday 6 July 2020

FACE TO FACE ISABELLE SCEMAMA

Axa Alts chief Axa Investment Managers

Established 1994

focuses on Assets €804bn

Employees More than 2,360

building a Headquarters Paris

green future
Ownership Axa

2019. Deal activity this year has been

paralysed by coronavirus, creating
huge uncertainty about the outlook
for returns.
INTERVIEW
“Dry powder will put pressure on
Scemama says interest in pricing, rental growth and the level of
rents but the market is not com-
zero carbon buildings will pletely frozen. There are still transac-
tions going on although the pace of
remain strong despite crisis activity has slowed.”
Axa is working on another 30 real
estate development projects and Ms
Chris Flood
Scemama points out that it employs
more than 200 “bricks and mortar

I
sabelle Scemama likes a chal- guys” or asset management staff
lenge. She was handed a thorny whose role is to ensure tenant needs
one in March during the market are met. “Staying close to tenants is
meltdown when she was pro- very important. We expect that will
moted to be global head of alter- make a difference in performance,”
natives at Axa Investment Managers. she says.
The €804bn asset management Central banks have responded to
business owned by Axa, the Paris- the pandemic with additional liquid-
listed insurer, has undergone a period ity measures but the highly uncertain
of upheaval following the abrupt economic outlook has affected the
departure of Andrea Rossi as chief capacity of banks to support highly
executive in October. New chief Ger- leveraged investment strategies.
ald Harlin has since embarked on a Ms Scemama believes this confirms
strategy to improve asset growth and the rationale behind Axa IM’s cau-
profitability. tious use of leverage after a period
This involved splitting the invest- when rivals used debt facilities
ment management unit into two: the Tony Healey/FT
aggressively to boost returns.
publicly traded equities and bonds “Banks are renegotiating deals with
team led by Hans Stoter, and an during the crisis. Clients have seen she is confident interest in more envi- private equity managers and other
enlarged €146bn alternatives arm the crisis as a good entry point and we ronmentally-friendly zero carbon highly leveraged players but financ-
under Ms Scemama. expect to see a lot of demand across buildings will remain strong. ing is not as readily available as it was.
Under the new structure, Ms Sce- all areas of alternatives.” “Reducing the carbon footprint of a The debt underwriting capacity of
mama retains leadership of real Her base case is that Axa IM’s alter- real estate portfolio is one of the best banks has also decreased and some
estate and infrastructure debt and natives business can attract between ways to contribute positively to the highly leveraged strategies will suffer
equity as well as assuming Axa IM’s €10bn and €15bn in fresh capital environment,” she says. a lot,” she says.
structured finance and hedge fund annually, depending on the buoyancy A delay, however, looks unavoida- Dennis Lopez, chief executive at
capabilities. Born 1967 Grenoble, France of market conditions. ble to the completion of building QuadReal, the real estate arm of Brit-
“Very happy with this new chal- Pressed on whether alternative work at Axa’s vast 22 Bishopsgate site ish Columbia Investment Manage-
lenge. It came at exactly the right Education investments can still deliver the in London, which was due to open ment, sees Ms Scemama as a “classic
time,” says the self-described “busi- 1986-89 Finance degree at returns predicted before coronavirus this year. Axa IM will use facial recog- life-long learner”.
ness developer”. Sciences Po (Institut d’études struck, Ms Scemama replies that real nition for the first time at one of the “Isabelle has proved repeatedly
After starting her career at BNP politiques de Paris) estate and private assets will not be tallest and most technologically that she can identify opportunities
Paribas, she joined Axa IM in 2001 to immune from the recession. advanced offices in the city. and actually build businesses,” he
lead real estate fund structuring and Total pay Not disclosed “It would be crazy to say that real “We did observe pressure in the let- says. “She has the ability to intensely
financing. In 2005, she launched the estate will not be affected but it will tings market after the Brexit vote in focus on objectives she has prioritised
commercial real estate loans plat- Career be one of the most resilient classes. 2016 but momentum since then has until they are achieved,” says Mr
form and oversaw the creation of the 1989-2001 Real estate finance, We diversified our portfolio before been good due to the combination of Lopez, who worked with Ms Sce-
manager’s infrastructure lending BNP Paribas coronavirus arrived so that it is much the location, services and technology mama when he was chief investment
platform in 2013. 2001-05 Head of corporate more balanced across residential, offered at 22 Bishopsgate.” officer at Axa IM’s real assets unit.
The tasks facing Ms Scemama have finance, Axa Investment retirement living, logistics, student Axa IM ranks as the world’s sev- Axa IM’s Paris-based staff have
been complicated by the Covid-19 Managers, real assets accommodations and data centres.” enth largest real estate manager and already returned to the office, work-
outbreak, which has forced central 2005-14 Head of CRE finance, Axa Social distancing requirements and the only European performer in the ing in split teams that spend alternate
banks to introduce vast support IM, real assets the popularity of working from home top 10 with assets of €91bn at the end weeks working from home. Ms Sce-
measures to calm turmoil across 2014-17 Chief executive, Axa REIM are an obvious threat to future of 2019, a rise of 2.3 per cent on the mama is also happy to have returned
financial markets. SGP demand for offices, particularly in previous year end, according to Inrev, although working from home did
“We will be stuck in a zero interest Since 2017 Chief executive, Axa IM, urban areas and city centres. a data provider. provide more time to practice yoga.
rate environment for even longer real assets Ms Scemama says it is “too early to Real estate managers are sitting on “My flexibility has improved but I
than was expected before coronavi- Since 2020 Global head of Axa IM know what the end picture” will be a mountain of “dry powder” or unal- am no yoga champion,” says the 52-
rus but we continued to raise signifi- Alts and chief executive, Axa IM, for the office market as demand is located capital worth about €150bn year-old. Another challenge to
cant amounts of new money even real assets correlated with economic growth but after a record year for fundraising in address.
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6 | FTfm FINANCIAL TIMES Monday 6 July 2020

THE BIG PICTURE

Is the dream
over for the
UK’s value
managers?
The investment style is at a crossroads
after the fall of industry stars and
dividend cuts, writes Siobhan Riding

T
wenty years before Neil earned their stripes during a golden
Woodford’s spectacular age of value investing in the UK,
fall from grace, the alongside names such as Fidelity’s
demise of another famed Anthony Bolton and New Star’s
UK value investor domi- Stephen Whittaker.
nated the headlines. “Many a UK manager’s reputation
Tony Dye, the fund manager has been made because of value
dubbed Dr Doom for his views on the investing,” says Ryan Hughes, head
overvaluation of equities during the of active portfolios at investment
late 1990s tech bubble, was uncere- platform AJ Bell. “Up until a decade
moniously ousted in early 2000 after ago, the style was the go-to invest-
investors lost patience with his ment style, and lots of investors piled
underperforming funds. into it.” £62 bn 44 % coronavirus pandemic. “Value man- demic a few months later.” Value
In a cruel twist of fate for the late But the future of value investing is The dividend The share of UK agers have faced a perfect storm,” managers tend to favour stocks that
Mr Dye, the dotcom bubble burst just at a crossroads. Even before the blow- forecast for the value-focused says Samuel Meakin, associate direc- pay high dividends, but these payouts
a few weeks afterwards, proving his ups at Mr Woodford and Mr Barnett’s FTSE 100, down funds in 2005 is tor for equity strategies at Morning- have been slashed as companies have
thesis correct and rewarding his style funds, investors’ faith in value was from £91bn in down to just under star. “After the clarity provided by the moved to conserve cash in the face of
January a third in 2020
of value investing. being tested by its prolonged under- UK election, some managers the economic crisis. According to AJ
Mr Woodford, another self-pro- performance due to more than a dec- increased their exposure to retailers Bell, the dividend forecast for the
claimed value investor who made his ade of low interest rates and the rally and consumer sectors, only for these FTSE 100 has fallen from £91bn in
name by pursuing a similar invest- in growth stocks during the post-cri- to be among the worst hit by the pan- January to £62bn.
ment approach during the dotcom sis bull run. Ben Lofthouse, head of global
boom, only to lose the faith of his “It has been a very tough time for Value’s underperformance is now the worst on record equity income at Janus Henderson,
investors two decades later, is yet to pure value managers,” says Nick Kir- says that dividend cuts are “particu-
Rolling 10-year total return difference (value vs growth)
have his investment philosophy vin- rage, who co-heads a Schroders team larly painful” as they mean value
dicated. managing £9bn in assets across global 150 investors can no longer rely on being
But Mr Woodford’s downfall as well value funds. “There aren’t as many of “paid to wait” for value to outper-
as that of his protégé at Invesco, Mark us any more because some have form, reducing their total return.
Barnett, is evidence that just like changed their style or found other However, with the gap in returns
during Mr Dye’s time patience is ways to buy companies.” between value and growth standing
once again wearing thin for value According to Morningstar, value- at a 25-year high, value advocates
managers. focused funds account for just under 100 such as Mr Lofthouse argue that there
Value investing involves identify- a third of UK-domiciled fund assets, are rich rewards for investors who
ing good companies trading below down from 44 per cent in 2005. can hold their nerve.
their fair value and waiting for the Meanwhile, growth funds have “The current conditions arguably
market to correct itself. The style has flourished. Strategies such as Terry provide the best environment for
historically flourished in the UK, in Smith’s Fundsmith Equity and Lind- 50 value investors,” he says. “The para-
part owing to the heavy weighting of sell Train’s UK Equity, which invest dox is that you are best served in the
dividend-paying value stocks such as in mature companies with the ability long term when other investors’
mining companies and financial to outperform their peers, have con- interest in value assets is at rock bot-
groups in the FTSE 100 index and in sistently topped the best-selling tom.”
UK investors’ portfolios. funds list in recent years and are Simon Gergel, head of UK equities
0
“There is a culture of value invest- now among the largest equity funds at Allianz Global Investors, agrees,
ing in the UK,” says Edward Park, in the UK. recalling the words of Mr Dye, with
deputy chief investment officer at Although the performance of value whom he worked at Phillips & Drew.
wealth manager Brooks Macdonald. is cyclical and expected to reverse “He used to use the analogy of a brick
“The London market has lent itself when the market enters a new phase, and elastic. You could pull on that for
well to value stocks, which is why the style’s problems have been com- -50 a long time but nothing changed. But
there have traditionally been more pounded in recent years by Brexit 1936 50 60 70 80 90 2000 10 19 at some point the elastic will get very
‘star’ managers in that sector.” uncertainty. Value funds’ woes are stretched and will start to move, and
Source: Schroders analysis of data from Eugene Fama’s library at Tuck University
Mr Woodford and Mr Barnett now being exacerbated further by the it will move very fast.”
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FINANCIAL TIMES Monday 6 July 2020 FTfm | 7

THE BIG PICTURE

Value strategies fall behind as growth funds houses are already considering left in the market by driving money than deriving from the duo’s stated
reducing their reliance on value. out of value stocks and exacerbating value approach. Schroders’ Mr Kir-
acquire market share M&G chief executive John Foley said potential mispricings. rage says that being clear about the
UK fund assets at the end of May (%) earlier this year that the group was Not all UK value managers are investment approach and sticking to
reviewing its value house style, which floundering. Polar Capital’s UK Value it is key to success in value investing.
2005 2020
underpins its former blockbuster Opportunities and the Man GLG He warns that though this will not
0 10 20 30 40 50 Recovery fund. Undervalued Assets fund have beaten always work, having a disciplined
The reputational harm to value the MSCI UK Large Value index over approach is important at a time when
caused by the demise of Mr Woodford the past three years, despite lagging value stocks are trading at historic
and Mr Barnett may cause more behind the broader stock market, lows. “In the last ten years we’ve been
Growth investors and managers to retrench. according to FE Analytics. Advocates swimming into a current, but we have
Vitali Kalesnik, head of equity of value argue that the problems that to keep swimming and then eventu-
research at Research Affiliates, says led to Mr Woodford and Mr Barnett’s ally one day the tide will switch.”
that such a trend could enhance the undoing were linked to liquidity Additional reporting by Attracta
potential returns for those investors management and style drift rather Mooney

Value

Source: Morningstar

Investors have been dumping value-focused

equity funds
Net flows ($bn)
10
5
0
-5
-10
-15
-20
-25
2000 05 10 15 20
Source: EPFR

From left, Tony Dye, But there are questions over whether
Neil Woodford and value funds will ever get back to the
Mark Barnett are all bumper returns they enjoyed for
stars who fell from much of the past century due to struc-
grace as value asset tural changes to the economy.
managers Advances in technology and the shift
FT montage
away from fossil fuels are sending val-
ue-focused companies into acceler-
ated decline, while further propelling
growth stocks.
“The big question mark is how big a
role technology will play in terms of
productivity, disruption and funda-
mentally changing the landscape,”
says Adrian Lowcock, head of per-
sonal investing at Willis Owen. “Dur-
ing this crisis, lots of companies suf-
fered while technology companies
stepped up and delivered.”
Mr Lofthouse, whose fund has a
value tilt rather than being a pure
value strategy, counters that these
changes do not alter the case for
investing in unloved stocks, provided
that managers stay alert to so-called
value traps, apparent bargains that
cannot be salvaged. “The biggest
change I’ve made is not assuming that
‘The biggest companies’ past returns are always
going to be maintained,” he says.
change I’ve He adds that one advantage of the
made is not current environment and surge in
demand for technology is that it will
assuming that force companies to adapt quickly, for
companies’ past example pushing high-street retailers
to establish an online presence.
returns are A bigger question is whether more
always going to value managers will capitulate as
they did in the run-up to the bursting
be maintained’ of the dotcom bubble. Some large
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FINANCIAL TIMES Monday 6 July 2020 FTfm | 9

FTfm

Property Unit Trusts are limited to investors or type of holder. hours; # 1701 to midnight. Daily dealing prices move to forward pricing at any time.
Guide to data who are UK tax exempt.
All dealings are subject to individual Trust
Deed rules. The sale prices for these funds are
Buying price: Also called offer price. The price
at which units in a unit trust are bought by
investors. Includes manager’s initial charge.
are set on the basis of the valuation point, a
short period of time may elapse before prices
become available.
Forward pricing: The letter F denotes that that
managers/operators deal at the price to be set
at the next valuation. Investors can be given
estimates. Selling price: Also called bid price. The price Yield: Funds comprising mainly of bonds no definite price in advance of the purchase or
The fund prices quoted in FTfm are supplied [email protected]. The fund prices Guide to pricing of Authorised Investment at which units in a unit trust are sold by normally quote a gross redemption yield after sale being carried out. The prices appearing in
by the operator of the relevant fund. Details of published in this edition along with additional Funds. investors. all charges but before tax has been deducted. the newspaper are the most recent provided
funds, including prices, are for informational information are also available on the Financial Compiled with the assistance of the IMA. The Single price: Based on a mid-market valuation Funds mainly made up of equities normally by the managers/operators. Scheme
purposes only. The Financial Times Limited Times website at www.ft.com/funds. Charges Investment Management Association, 65 of the underlying investments. The buying quote a yield representing the estimated particulars, prospectus, key features and
makes no representation as to their accuracy for this advertising service are based on the Kingsway, London WC2B 6TD. +44 (0)20 7831 and selling price for shares of an OEIC and annual payout net of tax for basic rate reports: The most recent report, scheme
or completeness, and they should not be relied number of lines published and the 0898. All funds within this section, whether units of a single priced unit trust are the same. taxpayer. For further information contact the particulars, prospectus and key features
upon when making an investment decision. classification of the fund. Please contact OEICs or unit trusts are authorised in the UK Exit Charges: The letter E denotes that an management company. document may be obtained free of charge
The sale of interests in the funds listed in [email protected] or call +44 (0)20 7873 3132. by the Financial Services Authority. The prices exit charge may be made when you sell units, Historic pricing: The letter H denotes that the from fund managers/operators.
FTfm in certain jurisdictions may be restricted The funds published on these pages are quoted should only be used as a guide. contact the manager/operator for full details. managers/operators will normally deal on the * Indicates funds which do not price on
by law and the funds will not necessarily be grouped together by fund management OEIC: Open-Ended Investment Company. Time: The time shown alongside the fund price set at the most recent valuation. Fridays.
available to persons in all jurisdictions in which company. Similar to a unit trust but using a company manager’s/operator’s name is the time of the The prices shown are the latest available Other explanatory notes are contained in the
the publication circulates. Persons in any Prices are in pence unless otherwise indicated rather than a trust structure. unit trust’s/OEIC’s valuation point unless before publication and may not be the current last column of the FT Managed Funds Service.
doubt should take appropriate professional and those designated $ with no prefix refer to Share Classes: Separate classes of share are another time is indicated by the symbol dealing levels because of an intervening
advice. US dollars. Yields % allow for buying expenses. denoted by a letter or number after the name alongside the individual unit trust/OEIC name. portfolio revaluation or a switch to a forward Prospectus data, price histories, charges and
Data collated by Morningstar. For all other Prices of certain older insurance linked plans of the fund. Different classes are issued to The symbols are as follows: ✠ 0001 to 1100 pricing basis. The managers/operators must risk analytics on the funds within these pages
queries, contact the FT at are subject to capital gains tax on sales. Some reflect a different currency, charging structure hours; ♦ 1101 to 1400 hours; ▲1401 to 1700 deal at a forward price on request, and may is available online 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

Artemis Corporate Bond I Acc £ 1.06 - 0.00 - Property Inc 108.32 111.95 -1.16 5.56

Artemis European Growth I Acc £ 3.16 - -0.01 3.00 Local Authorities Property Fd (LAMIT) (UK)
Property 282.11 305.90 -4.09 4.81
Artemis European Opps I Acc £ 1.12 - 0.01 1.69

Aberdeen Standard Capital (JER) Artemis Global Emerging Mkts I Acc 133.29 - 2.16 - CP Capital Asset Management Limited
PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130 www.cpgbl.com, email: [email protected]
Artemis Global Growth I Acc £ 2.88 - 0.03 2.47
FCA Recognised International Mutual Funds
Aberdeen Standard Capital Offshore Strategy Fund Limited Artemis Global Income I Inc £ 0.84 - 0.00 3.75 CPS Master Private Fund $ 310.94 - 0.03 -
Bridge Fund £ 2.0817 - 0.0141 1.81 Artemis Global Select I Acc £ 1.39 - 0.02 0.64
CG Asset Management Limited (IRL)
CP Global Alpha Fund $ 256.21 - -0.89 -
25 Moorgate, London, EC2R 6AY
Global Equity Fund £ 2.9107 - 0.0299 1.13 Artemis High Income I Q Inc £ 0.75 - 0.00 5.28 Dealing: Tel. +353 1434 5098 Fax. +353 1542 2859
Global Fixed Interest Fund £ 0.9439 - 0.0036 4.34 Artemis Income I Inc £ 2.06 - -0.01 4.61 FCA Recognised
CG Portfolio Fund Plc
Income Fund £ 0.6079 - 0.0027 2.91 Artemis Monthly Dist I Inc £ 0.66 - 0.00 3.89 Absolute Return Cls M Inc £ 128.15 128.15 0.60 1.45
Sterling Fixed Interest Fund £ 0.8935 - 0.0025 3.00 Artemis Strategic Assets I Acc £ 0.77 - 0.00 0.73 Brown Advisory Funds plc (IRL) Capital Gearing Portfolio GBP P £ 34594.12 34594.12 147.01 0.53 Dragon Capital Group
UK Equity Fund £ 1.7655 - -0.0082 3.10 http://www.brownadvisory.com Tel: 020 3301 8130 1501 Me Linh Point, 2 Ngo Duc Ke, District 1, Ho Chi Minh City, Vietnam
Artemis Strategic Bond I Q Acc £ 1.07 - 0.00 2.71 Capital Gearing Portfolio GBP V £ 168.24 168.24 0.72 0.59
FCA Recognised Fund information, dealing and administration: [email protected]
Artemis Target Return Bond I Acc £ 1.02 - 0.00 - Global Leaders Sustainable Fund USD C $ 10.28 - 0.10 - Dollar Fund Cls D Inc £ 178.56 178.56 0.37 1.76 Other International Funds
Artemis UK Select Fund Class I Acc £ 5.10 - -0.04 3.49 Vietnam Equity (UCITS) Fund A USD $ 19.02 - 0.40 0.00
US Equity Growth Fund USD B $ 46.90 - 0.27 0.00 Dollar Hedged GBP Inc £ 104.21 104.21 0.28 1.83
Artemis UK Smaller Cos I Acc £ 14.28 - 0.08 3.00 American Fund USD B $ 24.68 - 0.10 0.17 Real Return Cls A Inc £ 215.68 215.68 0.21 2.03
Artemis UK Special Sits I Acc £ 5.72 - -0.04 2.62 US Smaller Companies Fund USD B $ 29.63 - 0.04 0.00
Artemis US Abs Return I Hdg Acc 112.45 - -0.04 0.39 US Small Cap Blend Fund USD B $ 16.17 - 0.02 0.00
Artemis US Extended Alpha I Acc 253.90 - -0.10 0.00 US Flexible Equity Fund USD B $ 18.40 - 0.09 0.00 DWS (LUX)
Artemis US Select I Acc 250.89 - -0.16 0.19 Tel: +44 (0) 20 7541 8999 www.dws.com
Global Leaders Fund USD C $ 16.94 - 0.18 0.00
FCA Recognised
Artemis US Smlr Cos I Acc 259.71 - -0.46 0.02 Latin American Fund USD B $ 9.97 - -0.06 1.13 DWS Invest Top Dividend £ 133.20 133.20 1.18 3.11
US Sustainable Growth Fund USD C $ 19.77 - 0.14 0.00 DWS Invest Top Euroland £ 142.24 142.24 2.76 1.53
US Mid-Cap Growth Fund USD C $ 15.88 - 0.02 0.00 DWS Invest Multi Opportunities £ 100.77 100.77 0.59 0.00
Algebris Investments (IRL)
DWS Invest Global Bonds £ 101.31 101.31 0.10 0.00
Regulated
Algebris Core Italy I EUR Acc € 100.87 - 1.56 0.00
EdenTree Investment Management Ltd (UK)
Algebris Allocation Fund - Class I EUR € 93.91 - -0.09 0.00
PO Box 3733, Swindon, SN4 4BG, 0800 358 3010
Algebris Core Italy Fund - Class R EUR € 94.61 - 1.46 0.00 Candriam Investors Group (LUX) Authorised Inv Funds
FCA Recognised Amity UK Cls A Inc 214.70 - 0.10 1.78
Algebris Financial Credit Fund - Class I EUR € 174.38 - 0.71 0.00
Candriam Eqts L Australia Cap A$ 1314.09 - 3.71 0.00
Amity UK Cls B Inc 213.90 - 0.00 2.64
Algebris Financial Credit Fund - Class R EUR € 152.18 - 0.63 0.00
Candriam Qt-Eqts Europe Cap € 2493.29 - 44.18 0.00
Higher Income Cls A Inc 112.40 - -0.10 5.16
Algebris Financial Credit Fund - Class Rd EUR € 104.99 - 0.43 5.03
Candriam Qt-Eqts USA Cap $ 3385.45 - 15.36 0.00
Higher Income Cls B Inc 118.50 - -0.10 5.20
Algebris Financial Income Fund - Class I EUR € 130.65 - 1.77 0.00
Ashmore Investment Management Limited (LUX) UK Equity Growth Cls A Inc 257.90 - -1.00 1.68
Algebris Financial Income Fund - Class R EUR € 121.51 - 1.64 0.00
2 rue Albert Borschette L-1246 Luxembourg UK Equity Growth Cls B Inc 263.00 - -1.10 2.56
Algebris Financial Income Fund - Class Rd EUR € 81.77 - 1.12 5.41 FCA Recognised
Amity Balanced For Charities A Inc 96.27 - -0.12 5.94
Algebris Financial Equity Fund - Class B EUR € 88.62 - 2.42 0.00 Ashmore SICAV Emerging Market Debt Fund $ 86.04 - 0.61 6.03 CCLA Investment Management Ltd (UK)
Senator House 85 Queen Victoria Street London EC4V 4ET Candriam Investors Group
Ashmore SICAV Emerging Market Frontier Equity Fund $ 139.32 - 0.51 1.70 Amity European Fund Cls A Inc 245.40 - 0.40 -
Algebris Macro Credit Fund - Class I EUR € 120.78 - 0.38 0.00
Authorised Inv Funds
Other International Funds Dodge & Cox Worldwide Funds (IRL)
Ashmore SICAV Emerging Market Total Return Fund $ 75.40 - 0.44 5.14 Candriam Eqts L Emerging Mkts Cap € 894.74 - 16.79 0.00 6 Duke Street,St.James,London SW1Y 6BN Amity European Fund Cls B Inc 247.50 - 0.40 2.87
Algebris Macro Credit Fund - Class R EUR € 118.93 - 0.37 0.00 Diversified Income 1 Units GBP Inc £ 1.51 1.51 0.00 0.03
www.dodgeandcox.worldwide.com 020 3713 7664
Ashmore SICAV Global Small Cap Equity Fund $ 153.94 - 2.22 0.03 Candriam Bonds Credit Opportunities € 198.75 - 0.15 0.00 Amity Global Equity Inc for Charities A Inc 135.00 - 0.60 3.36
Algebris Macro Credit Fund - Class Rd EUR € 118.93 - 0.37 0.00 Diversified Income 2 Units GBP Inc £ 1.45 1.45 -0.01 0.03 FCA Recognised
EM Active Equity Fund Acc USD $ 126.14 - 2.66 0.00 Candriam Bds Euro High Yield Cap € 1177.48 - 3.54 0.00 Dodge & Cox Worldwide Funds plc - Global Bond Fund Amity International Cls A Inc 280.80 - 1.80 0.82
Algebris IG Financial Credit R EUR Acc € 103.48 - 0.36 - Diversified Income 3 Units GBP Inc £ 1.46 1.46 -0.01 0.03
EUR Accumulating Class € 15.10 - 0.08 0.00 Amity International Cls B Inc 282.90 - 1.90 1.57
Algebris IG Financial Credit B EUR Acc € 103.96 - 0.36 - EM Equity Fund Acc USD $ 110.68 - 1.88 0.00 Candriam Bds Euro Sh.Term Cap € 2069.45 - 1.15 0.00
The Public Sector Deposit Fund
EUR Accumulating Class (H) € 10.93 - 0.03 0.00 Amity Sterling Bond Fund A Inc 103.20 - 0.20 3.94
EM Mkts Corp.Debt USD F $ 83.89 - 0.41 6.94 The Public Sector Deposit Fund-share class 1 F * 100.00 - 0.00 0.31
EUR Distributing Class € 11.97 - 0.06 3.05 Amity Sterling Bond Fund B Inc 114.70 - 0.20 3.94
EM Mkts Loc.Ccy Bd USD F $ 73.68 - 0.25 5.29 The Public Sector Deposit Fund-share class 4 F * 100.00 - 0.00 0.24
EUR Distributing Class (H) € 8.63 - 0.03 3.31
EM Short Duration Fund Acc USD $ 110.04 - 0.52 0.00
GBP Distributing Class £ 13.15 - 0.06 3.08
The Antares European Fund Limited Chartered Asset Management Pte Ltd
Other International Other International Funds GBP Distributing Class (H) £ 9.07 - 0.03 3.57
AEF Ltd Usd $ 586.00 - 1.16 - CAM-GTF Limited $ 274286.72 274286.73 1711.76 0.00
USD Accumulating Class $ 12.24 - 0.04 0.00
CCLA Investment Management Ltd (UK) Electric & General (1000)F (UK)
AEF Ltd Eur € 550.10 - 1.06 0.00 CAM GTi Limited $ 787.20 - 29.83 -
Senator House 85 Queen Victoria Street London EC4V 4ET Dodge & Cox Worldwide Funds plc-Global Stock Fund Stuart House St.John's Street Peterborough PE1 5DD
Atlantas Sicav (LUX) Property & Other UK Unit Trusts Raffles-Asia Investment Company $ 1.29 1.29 -0.02 2.32 USD Accumulating Share Class $ 19.92 - 0.29 0.00 Orders & Enquiries: 0845 850 0255
Regulated CBF Church of England Funds Authorised Inv Funds
American Dynamic $ 5339.21 5339.21 -62.95 0.00 GBP Accumulating Share Class £ 26.29 - 0.41 0.00
Investment Inc 1900.75 1911.46 -9.54 2.97 Authorised Corporate Director - Carvetian Capital Management
American One $ 5106.66 5106.66 -117.41 0.00 GBP Distributing Share class £ 18.18 - 0.28 1.46 Electric&General Net Accumulation 252.40 - 2.60 -
Investment Acc 4545.71 4571.33 11.42 0.00
Arisaig Partners Bond Global € 1521.00 1521.00 8.54 0.00 EUR Accumulating Share Class € 26.62 - 0.42 0.00 Electric&General Net Income A 249.50xd - 2.50 1.08
Global Equity Inc 240.22 240.67 -0.71 2.95
Other International Funds Eurocroissance € 1118.47 1118.47 -14.68 0.00 Consistent Unit Tst Mgt Co Ltd (1200)F (UK) GBP Distributing Class (H) £ 9.77 - 0.14 1.17
Global Equity Acc 419.78 420.56 1.84 0.00
Arisaig Asia Consumer Fund Class A (Ex-Alcohol) shares $ 101.00 - 0.72 - Stuart House, St John's Street, Peterborough, PE1 5DD
Far East $ 958.05 - -16.46 0.00 Dodge & Cox Worldwide Funds plc-U.S. Stock Fund
UK Equity Inc 177.41 178.14 -2.34 3.44 Dealing & Client Services 0345 850 8818
Arisaig Asia Consumer Fund Limited $ 99.23 - 0.82 0.00 USD Accumulating Share Class $ 24.74 - 0.15 0.00
Authorised Inv Funds
UK Equity Acc 312.55 313.84 -1.41 0.00
Arisaig Global Emerging Markets Consumer Fund $ 12.58 - 0.14 0.00 Consistent UT Inc 42.36 44.07 0.13 2.85 GBP Accumulating Share Class £ 30.88 - 0.22 0.00
Ennismore Smaller Cos Plc (IRL)
Fixed Interest Inc 168.30 169.48 -1.48 3.51
Arisaig Global Emerging Markets Consumer UCITS € 12.85 - -0.01 - Consistent UT Acc 112.90 117.50 0.40 2.85 GBP Distributing Share Class £ 18.90 - 0.14 0.91 5 Kensington Church St, London W8 4LD 020 7368 4220
Fixed Interest Acc 615.50 619.84 -0.68 0.00 FCA Recognised
Arisaig Global Emerging Markets Consumer UCITS STG £ 14.50 - -0.10 - Practical Investment Inc 208.30 224.00 0.80 3.67 EUR Accumulating Share Class € 28.55 - 0.21 0.00
Barclays Investment Funds (CI) Ltd (JER) Property Fund Inc 126.67 130.91 -1.35 5.52
Ennismore European Smlr Cos NAV £ 128.94 - -0.39 0.00
Arisaig Latin America Consumer Fund $ 22.42 - 0.04 0.00 39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800 Practical Investment Acc 1185.00 1275.00 4.00 3.67 GBP Distributing Class (H) £ 10.33 - 0.06 1.37
Ennismore European Smlr Cos NAV € 143.15 - 0.07 0.00
FCA Recognised
Bond Funds
Sterling Bond F £ 0.50 - 0.00 2.30

CCLA Fund Managers Ltd (UK)

Senator House 85 Queen Victoria Street London EC4V 4ET Ennismore European Smlr Cos Hedge Fd
Property & Other UK Unit Trusts Other International Funds
COIF Charity Funds (UK) NAV € 511.92 - 7.11 0.00
Investment Inc 1672.28 1681.71 -0.93 3.07
Investment Acc 18902.28 19008.81 -10.53 0.00

Ethical Invest Inc 258.23 259.69 -0.09 3.16

Ethical Invest Acc 392.22 394.43 -0.13 0.00

Equinox Fund Mgmt (Guernsey) Limited (GSY)
Global Equity Inc 223.64 224.05 0.12 2.93 Regulated
Artemis Fund Managers Ltd (1200)F (UK) CP Global Asset Management Pte. Ltd. Equinox Russian Opportunities Fund Limited $ 163.96 - 5.30 0.00
57 St. James's Street, London SW1A 1LD 0800 092 2051 Global Equity Acc 394.95 395.68 0.21 0.00
www.cpglobal.com.sg, Tel: +65 6466 6990
Authorised Inv Funds Fixed Interest Inc 140.83 141.82 -0.41 3.14 International Mutual Funds
Artemis Capital I Acc £ 14.60 - -0.08 4.01 CP Multi-Strategy Fund $ 226.43 - -1.86 -
Fixed Interest Acc 949.92 956.61 -2.74 0.00
 UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws
10 | FTfm FINANCIAL TIMES Monday 6 July 2020

FTfm

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

South East Asia £ 6.41 - 0.11 1.89 High Yield Bond B Inc £ 0.90 - 0.00 5.62

Sterling Core Plus Bond Gr Accum £ 3.13 - 0.01 1.92 Investment Grade Bond B Acc 193.84 - 0.46 1.66

UK £ 3.91 - -0.01 3.00 Investment Grade Bond B Inc £ 1.29 - 0.00 2.41

Euronova Asset Management UK LLP (CYM) UK Aggreg Bond Gr Accum £ 2.43 - 0.01 1.74 HPB Assurance Ltd Sterling Corporate Bond B Acc £ 0.92 - 0.00 2.76 Lloyds Investment Fund Managers Limited (1000)F (JER)
Regulated Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490 PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555
Sterling Corporate Bond - Gross £ 2.96 - 0.01 2.28 Sterling Corporate Bond B Inc £ 0.35 - 0.00 2.76
Smaller Cos Cls One Shares € 49.31 - 1.35 0.00 International Insurances Other International Funds
UK Gilt Gross £ 2.69 - 0.00 1.26 Holiday Property Bond Ser 1 £ 0.51 - 0.00 0.00 Strategic Bond B Acc £ 1.40 - 0.00 3.80 Lloyds Investment Funds Limited
Smaller Cos Cls Two Shares € 32.64 - 0.79 0.00
Sterling Long Corp Bond - Gross £ 3.62 - 0.01 2.63 Strategic Bond B Inc £ 1.33 - 0.01 3.80 Euro High Income € 1.5170xd - 0.0050 2.67
Holiday Property Bond Ser 2 £ 0.63 - 0.00 0.00
Smaller Cos Cls Three Shares € 16.44 - 0.40 0.00
UK Equity B Acc £ 2.89 - -0.01 2.61 High Income £ 0.8700xd - 0.0024 3.71
Smaller Cos Cls Four Shares € 21.12 - 0.52 0.00
UK Equity Absolute Return B Acc £ 1.22 - 0.00 0.00 Sterling Bond £ 1.5890xd - 0.0050 2.09

UK Equity Income B Acc £ 2.31 - -0.01 4.60 Lloyds Multi Strategy Fund Limited
Conservative Strategy £ 1.2820 - 0.0050 0.00
Findlay Park Funds Plc (IRL) Hermes Property Unit Trust (UK) UK Equity Income B Inc £ 1.46 - 0.00 4.73 Milltrust International Managed Investments ICAV (IRL)
30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900 Growth Strategy £ 1.7860 - 0.0110 0.00 [email protected], +44(0)20 8123 8369 www.milltrust.com
Property & Other UK Unit Trusts
UK Opportunities B Acc £ 2.13 - 0.01 1.09
FCA Recognised Property £ 6.62 7.11 -0.08 - Aggressive Strategy £ 2.4140 - 0.0210 0.00 Regulated
American Fund USD Class $ 134.60 - 0.50 0.00 UK Smaller Companies B Acc £ 3.67 - 0.00 1.53 British Innovation Fund £ 123.94 - 23.92 0.00
Global USD Growth Strategy $ 1.6540 - 0.0110 0.00
American Fund GBP Hedged £ 68.09 - 0.26 0.00 MAI - Buy & Lease (Australia) A$ 123.94 - 21.42 0.00
Dealing Daily
American Fund GBP Unhedged £ 107.96 - 0.33 0.00 MAI - Buy & Lease (New Zealand)NZ$ 98.28 - 0.99 0.00

Milltrust Global Emerging Markets Fund - Class A $ 92.22 - -0.02 0.00

INDIA VALUE INVESTMENTS LIMITED (INVIL)
www.invil.mu Kames Capital Investment Portfolios ICVC (UK) The Climate Impact Asia Fund (Class A) $ 86.74 - -0.97 -
Other International Funds Kames House, 3 Lochside Crescent, Edinburgh EH12 9SA
0800 358 3009 www.kamescapital.com Lothbury Property Trust (UK)
NAV £ 8.62 - -0.13 -
First State Investments (UK) (1200)F (UK) Authorised Funds 155 Bishopsgate, London EC2M 3TQ +44(0) 20 3551 4900
FIL Investment Services (UK) Limited (1200)F (UK) Property & Other UK Unit Trusts
23 St Andrew Square, Edinburgh, EH2 1BB Property Income B Acc 118.93 118.93 0.01 4.64
130, Tonbridge Rd, Tonbridge TN11 9DZ Lothbury Property Trust GBP* £ 1892.39 - -9.90 3.23
[email protected]
Callfree: Private Clients 0800 414161 Property Income B Inc 89.69 89.69 0.00 4.75
Client Services: 0800 587 4141 Dealing Line: 0800 587 3388 *Net asset value calculation suspended. Indicative valuation for information only. Milltrust International Managed Investments SPC
Broker Dealings: 0800 414 181
Authorised Funds [email protected], +44(0)20 8123 8369, www.milltrust.com
OEIC Funds
Asia-All Cap Acc GBP £ 1.57 - 0.02 1.09 Intrinsic Value Investors (IVI) LLP (IRL) Regulated
Allocator World Fund Y-ACC-GBP £ 2.10 - 0.01 1.47
1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210 Milltrust Alaska Brazil SP A $ 62.34 - -0.45 -
Asia Focus Acc GBP £ 2.02 - 0.03 1.15
American Special Sits W-ACC-GBP £ 14.77 - 0.03 0.84 FCA Recognised
Milltrust Laurium Africa SP A $ 77.74 - -0.10 -
Diversified Growth B Acc £ 1.16 - -0.01 1.47 IVI European Fund EUR € 21.79 - 0.37 0.00
Asia Pacific Ops W-Acc £ 2.34 - 0.02 1.32 Kames Capital VCIC (IRL) M & G Securities (1200)F (UK)
Milltrust Singular ASEAN SP Founders $ 97.64 - 1.59 -
Emerging Markets Bond A Accumulation £ 1.36 - 0.01 5.28 IVI European Fund GBP £ 26.13 - 0.35 0.36 1 North Wall Quay, Dublin 1, Ireland +35 3162 24493 PO Box 9038, Chelmsford, CM99 2XF
Asian Dividend Fund W-ACC-GBP £ 1.91 - 0.02 3.29
FCA Recognised www.mandg.co.uk/charities Enq./Dealing: 0800 917 4472 Milltrust SPARX Korea Equity SP A $ 105.19 - 0.25 -
Emerging Markets Bond A Income £ 0.95 - 0.01 5.50
China Consumer Fund W-ACC-GBP £ 3.48 - 0.07 0.48 Absolute Return Bond B GBP Acc 1127.20 - 0.96 1.48 Authorised Inv Funds Milltrust Xingtai China SP A $ 128.92 - 0.49 -
Global Listed Infrastructure Acc 283.38 - 1.99 3.15 Charifund Inc 1273.85 - -3.43 6.49
Emerging Asia Fund W-ACC-GBP £ 1.74 - 0.04 1.02 High Yield Global Bond A GBP Inc 479.09 - 1.40 4.35
Global Listed Infrastructure Inc 193.07 - 1.36 3.22 Charifund Acc 21979.89 - -59.25 6.27
Enhanced Income Fund W-INC-GBP £ 0.78 - 0.00 8.15 High Yield Global Bond B GBP Inc 1021.86 - 3.03 5.10

European Fund W-ACC-GBP £ 19.07 - 0.10 1.62

Global Property Securities A Accumulation 228.52 - -0.11 2.29 Janus Henderson Investors (UK)
Kames Global Equity Income B GBP Acc 1859.27 - 19.86 0.00 M&G Charibond Charities Fixed Interest Fund (Charibond) Inc £ 1.25 - 0.00 -
PO Box 9023, Chelmsford, CM99 2WB Enquiries: 0800 832 832
Global Property Securities A Income 160.54 - -0.08 2.32 M&G Charibond Charities Fixed Interest Fund (Charibond) Acc £ 42.34 - 0.02 -
Extra Income Fund Y-ACC-GBP £ 1.35 - 0.01 3.49 www.janushenderson.com Kames Global Equity Income B GBP Inc 1455.44 - -8.32 3.19
Ministry of Justice Common Investment Funds (UK)
Greater China Growth A Shares 1023.33 - 20.15 0.22 Authorised Inv Funds M&G Charity Multi Asset Fund Inc £ 0.78 - 0.00 -
FID INST - Emerging Markets Fund W-ACC-GBP £ 1.69 - 0.03 1.43 Kames Global Equity Market Neutral Fund - B Acc GBP £ 11.24 - 0.04 0.00 Property & Other UK Unit Trusts
Japan Focus Acc GBP £ 2.46 - 0.05 0.03 Janus Henderson Asia Pacific Capital Growth Fund A Acc 1223.00 - 22.00 0.60 The Equity Idx Tracker Fd Inc 1641.00 1641.00 7.00 3.35
Fidelity American Fund W-ACC-GBP £ 48.55 - 0.05 0.35 Kames Inv Grd Gbl Bond A Inc GBH 609.81 - 1.55 1.81 M&G Charity Multi Asset Fund Acc £ 83.97 - 0.07 -
Janus Henderson Asian Dividend Income Unit Trust Inc 95.86 - 1.30 7.50 Distribution Units
Fidelity Asia Fund W-ACC-GBP £ 15.71 - 0.28 1.02 Global Sustainable Equity B Acc GBP £ 22.00 - 0.33 0.00
Janus Henderson Cautious Managed Fund A Acc 257.80 - -0.80 3.47
Fidelity Cash Fund Y-ACC-GBP £ 1.02 - 0.00 0.66 Global Sustainable Equity C Acc GBP £ 22.28 - 0.34 0.00
Janus Henderson Cautious Managed Fund A Inc 137.20 - -0.50 3.55
FID Emerg Europe, Middle East and Africa Fund W-ACC-GBP £ 2.03 - 0.00 4.62 Short Dated High Yld Bd B Acc GBP £ 10.41 - 0.02 0.00
Janus Henderson China Opportunities Fund A Acc 1661.00 - 41.00 0.22
Fidelity European Opportunities W Acc £ 4.90 - 0.03 1.13 Short Dated High Yld Bd C Acc GBP (Hdg) £ 10.50 - 0.02 0.00 MMIP Investment Management Limited (GSY)
Janus Henderson Emerging Markets Opportunities Fund A Acc 204.90 - 3.10 0.27 Regulated
Fidelity Global Enhanced Income Fund W-ACC-GBP £ 1.98 - 0.01 3.77 Strategic Global Bond A GBP Inc 1231.75 - 4.91 2.68 Multi-Manager Investment Programmes PCC Limited
Janus Henderson European Growth Fund A Acc 239.20 - 1.60 0.87
Fidelity Global Focus Fund W-ACC-GBP £ 28.28 - 0.30 0.24 Strategic Global Bond B GBP Inc 699.41 - 2.80 3.43 UK Equity Fd Cl A Series 01 £ 2082.38 2119.65 59.84 0.00
Janus Henderson European Selected Opportunities Fund A Acc 1826.00 - 12.00 0.18
Fidelity Global High Yield Fund Y-ACC-GBP £ 14.24 - 0.03 3.96 Diversified Absolute Rtn Fd USD Cl AF2 $ 1552.27 - 8.97 0.00
Janus Henderson Fixed Interest Monthly Income Fund Inc 22.09 - 0.09 4.18
Fidelity Japan Fund W-ACC-GBP £ 4.36 - 0.04 0.64 Diversified Absolute Return Stlg Cell AF2 £ 1468.22 - 8.68 0.00
Janus Henderson Global Equity Fund Acc 3852.00 - 30.00 0.00
Fidelity Japan Smaller Companies Fund W-ACC-GBP £ 3.69 - 0.07 0.39 Global Equity Fund A Lead Series £ 1461.55 1466.23 77.03 -
Janus Henderson Global Equity Income Fund A Inc 57.17 - 0.28 3.40
Fidelity Multi Asset Income Fund W Acc £ 1.05 - 0.00 2.67 Kleinwort Hambros Bank Limited (UK)
Foord Asset Management Janus Henderson Global Sustainable Equity Fund A Inc 395.70 - 4.80 0.02 5TH Floor, 8 St James's Square, London, SW1Y 4JU
Fidelity Select 50 Balanced Fund PI-ACC-GBP £ 1.08 - 0.00 0.77
Website: www.foord.com - Email: [email protected] Janus Henderson Global Technology Fund A Acc 2580.00 - 23.00 0.00 Dealing and enquiries: 033 0024 0785 Mirabaud Asset Management (LUX)
Fidelity Special Situations Fund W-ACC-GBP £ 29.47 - -0.10 3.81 FCA Recognised - Luxembourg UCITS Authorised Inv Funds www.mirabaud.com, [email protected]
Janus Henderson Instl UK Idx Opps A Acc £ 0.87 - -0.01 -
Foord International Fund | R $ 43.32 - 0.40 - Unit Trust Manager/ACD - Host Capital Marlborough Fd Managers Ltd (1200)F (UK) Conviction based investment vehicles details available here www.mirabaud-am.com
Short Dated Corporate Bond Fund Y ACC GBP £ 10.77 - 0.00 3.96
Janus Henderson Multi-Asset Absolute Return Fund A Acc 143.90 - -0.10 0.79 HC Kleinwort Hambros Growth A Acc 215.68 - 0.29 1.36 Marlborough House, 59 Chorley New Road, Bolton, BL1 4QP 0808 145 2500 Regulated
Foord Global Equity Fund (Lux) | R $ 14.53 - 0.20 -
Fidelity Sustainable Water & Waste W Acc £ 0.97 - 0.00 - www.marlboroughfunds.com Mir. - Glb Strat. Bd I USD $ 116.31 - 0.31 0.00
Janus Henderson Multi-Manager Active Fund A Acc 228.50 - 0.60 - HC Kleinwort Hambros Growth A Inc 195.68 - 0.26 1.38
Fidelity UK Growth Fund W-ACC-GBP £ 3.34 - -0.05 - Regulated Authorised Inv Funds
HC Kleinwort Hambros Equity Income A Inc 86.12 - -0.96 3.06 Mir. - DiscEur D Cap GBP £ 142.91 - 0.39 0.00
Foord Global Equity Fund (Sing) | B $ 17.69 - 0.27 0.00 Janus Henderson Multi-Manager Distribution Fund A Inc 128.70 - 0.60 2.54 Balanced 204.73 204.73 0.75 0.43
Fidelity UK Select Fund W-ACC-GBP £ 2.83 - -0.01 2.58 Mirabaud - UK Equity High Alpha £ 120.98 - 1.18 0.00
Foord International Trust (Gsy) $ 43.05 - 0.40 0.00 Janus Henderson Multi-Manager Diversified Fund A Acc 89.21 - 0.28 2.92 HC Kleinwort Hambros Equity Income A Acc 156.30 - -1.55 4.50 Bond Income 51.25 51.25 0.10 3.35
Global Dividend Fund W-ACC-GBP £ 2.51 - 0.02 2.67
Janus Henderson Multi-Manager Global Select Fund Acc 254.20 - 1.90 - HC Kleinwort Hambros Multi Asset Balanced A Acc 166.05 - 0.16 0.81 Cautious Inc 84.99 84.99 0.41 2.26
Global Property Fund W-ACC-GBP £ 1.90 - 0.00 2.09
Janus Henderson Multi-Manager Income & Growth Fund A Acc 178.60 - 0.80 1.96 HC Kleinwort Hambros Multi Asset Balanced A Inc 156.68 - 0.16 0.81 Emerging Markets 304.24 304.24 3.54 1.02
Global Special Sits W-ACC-GBP £ 44.59 - 0.28 0.77
Janus Henderson Multi-Manager Income & Growth Fund A Inc 148.00 - 0.60 1.99 HC Kleinwort Hambros Fixed Income A Acc 133.65 - 0.01 3.44 ETF Commodity A 70.09 70.09 0.13 0.00
Index Emerging Markets P-Acc £ 1.63 - 0.02 2.33
Franklin Templeton International Services Sarl (IRL) Janus Henderson Multi-Manager Managed Fund A Acc 282.50 - 0.50 0.45 HC Kleinwort Hambros Fixed Income A Inc 107.34 - 0.01 3.44 European Multi-Cap 476.18 476.18 1.12 1.23
Index Europe ex UK P-Acc £ 1.55 - 0.01 2.64 JPMorgan House - International Financial Services Centre,Dublin 1, Ireland
Janus Henderson Multi-Manager Managed Fund A Inc 273.50 - 0.60 0.46 Extra Income 79.73 79.73 -0.25 3.90
Index Japan P-Acc £ 1.72 - 0.02 2.07 Other International Funds
Franklin Emerging Market Debt Opportunities Fund Plc Janus Henderson Sterling Bond Unit Trust Acc 247.00 - 0.40 1.58 Far East Growth A Inc 233.90 233.90 3.33 1.10
Index Pacific ex Japan P-Acc £ 1.60 - 0.01 3.41 Franklin Emg Mkts Debt Opp CHFSFr 13.66 - 0.49 11.06 Janus Henderson Sterling Bond Unit Trust Inc 69.95 - 0.12 1.60 Global 260.14 260.14 1.73 0.00
Index UK P-Acc £ 1.20 - -0.01 4.49 Franklin Emg Mkts Debt Opp GBP £ 8.86 - -0.30 7.91 Janus Henderson Strategic Bond Fund A Inc 129.30 - 0.60 2.71 Global Bond Inc 161.53 161.53 0.65 2.50
Index US P-Acc £ 2.53 - 0.00 1.51 Franklin Emg Mkts Debt Opp SGD S$ 19.33 - 0.71 5.53 Janus Henderson UK & Irish Smaller Companies Fund A Acc 547.40 - -1.10 0.27 High Yield Fixed Interest 67.69 67.69 0.12 4.17
Index World P-Acc £ 2.06 - 0.00 1.90 Franklin Emg Mkts Debt Opp USD $ 15.18 - 0.65 7.72 Janus Henderson UK Absolute Return Fund A Acc 161.60 - 0.20 0.00 Multi Cap Income A Inc 124.82 124.82 -0.06 5.88
MoneyBuilder Balanced Y-ACC-GBP £ 0.56 - 0.00 3.75 New Capital UCITS Fund PLC (IRL)
Janus Henderson UK Alpha Fund A Acc 124.40 - -0.20 2.18 Nano-Cap Growth A Acc 165.77 165.77 4.50 0.00
MoneyBuilder Dividend Y-INC-GBP £ 1.09 - 0.00 5.79 Leconfield House, Curzon Street, London, W1J 5JB
Janus Henderson UK Equity Income & Growth Fund A Inc 415.00 - -2.70 5.37 Special Situations A Acc 1591.07 1591.07 11.65 0.00 www.newcapitalfunds.com
MoneyBuilder Income Fund Y-ACC-GBP £ 14.20 - 0.03 3.03 FCA Recognised
Janus Henderson UK Property PAIF A Acc £ 2.29 2.41 0.00 3.01 UK Multi-Cap Growth A Inc 351.46 351.46 2.56 0.13
Multi Asset Allocator Adventurous Fund Y-ACC-GBP £ 1.80 - 0.01 1.34 New Capital UCITS Funds
Janus Henderson UK Property PAIF A Inc £ 0.96 1.01 0.00 3.07 UK Micro Cap Growth A 718.78 718.78 5.75 0.00 New Capital China Equity Fund $ 212.51 - 5.75 0.00
Multi Asset Allocator Defensive Fund Y-ACC-GBP £ 1.39 - 0.00 1.23
Janus Henderson US Growth Fund A Acc 1507.00 - 11.00 0.00 Lazard Fund Managers Ltd (1200)F (UK) US Multi-Cap Income 624.11 624.11 3.38 1.33 New Capital Dynamic European Equity Fund € 124.22 - 2.37 0.00
Multi Asset Allocator Growth Fund Y-ACC-GBP £ 1.68 - 0.00 1.22 P.O. Box 364, Darlington, DL1 9RD
Dealing: 0870 6066408, Info: 0870 6066459 MFM - Third Party Funds New Capital Dynamic UK Equity Fund £ 108.67 - 1.38 0.00
Multi Asset Income Fund W-INC-GBP £ 1.04 - 0.00 4.29
Authorised Inv Funds Junior Oils 35.61 35.61 0.21 0.00
New Capital Global Alpha Fund £ 109.64 - 0.49 0.00
Multi Asset Allocator Strategic Fund Y-ACC-GBP £ 1.56 - 0.00 1.14 Lazard Investment Funds (OEIC) B Share Class Junior Gold C Acc 45.55 45.55 0.74 0.00
New Capital Global Equity Conviction Fund $ 162.54 - 1.27 0.00
Multi Asset Open Advent W-ACC-GBP £ 1.46 - 0.02 0.00 Developing Markets Acc 125.05 - 1.15 0.25
MFM Bowland 276.70 276.70 -4.50 0.73
Developing Markets Inc 123.17 - 1.13 0.20 New Capital Global Value Credit Fund $ 154.15 - 0.60 0.00
Multi Asset Open Defen W-ACC-GBP £ 1.30 - 0.00 0.00
MFM Hathaway Inc 143.84 143.84 0.58 1.40
Emerging Markets Acc 304.25 - 3.39 2.23 New Capital Japan Equity Fund ¥ 1312.79 - -5.17 0.00
Multi Asset Open Growth Fund W-ACC-GBP £ 1.40 - 0.01 0.00
Fundsmith LLP (1200)F (UK) MFM Techinvest Special Situations Acc 186.00 186.00 -4.02 0.00
Emg Mkts Inc 250.32 - 2.78 2.27 New Capital US Growth Fund $ 348.39 - 2.27 0.00
Multi Asset Open Strategic Fund W-ACC-GBP £ 1.37 - 0.01 0.00 PO Box 10846, Chelmsford, Essex, CM99 2BW 0330 123 1815
MFM Techinvest Technology Acc 707.76 707.76 5.85 0.00
www.fundsmith.co.uk, [email protected] New Capital US Small Cap Growth Fund $ 159.89 - 0.54 0.00
Open World Fund W-ACC-GBP £ 1.77 - 0.02 0.00 European Alpha Acc 897.84 - 4.62 1.21
Authorised Inv Funds MFM UK Primary Opportunities A Inc 377.21 377.21 -0.68 2.40
European Alpha Inc 785.42 - 4.04 1.23 New Capital Wealthy Nations Bond Fund $ 149.23 - 0.67 0.00
Strategic Bond Fund Y-ACC-GBP £ 1.32 - 0.00 1.92 Fundsmith Equity T Acc 505.91 - 2.79 0.12

UK Opportunities Fund W-ACC-GBP 217.80 - -0.70 1.26 Fundsmith Equity T Inc 462.86 - 2.55 0.12 European Smaller Cos Acc 588.17 - 1.42 0.73

UK Smaller Companies W-ACC-GBP £ 2.15 - 0.00 2.41 Global Equity Income Acc 170.05 - 0.67 4.65
Kames Capital ICVC (UK)
Institutional OEIC Funds Global Equity Income Inc 92.34 - 0.36 4.80
Kames House, 3 Lochside Crescent, Edinburgh, EH12 9SA Marwyn Asset Management Limited (CYM)
America £ 6.81 - 0.01 2.46 0800 358 3009 www.kamescapital.com Managed Bal Inc 170.96 - 0.12 1.76 Regulated
Emerging Markets £ 5.11 - 0.09 1.30 Authorised Funds Marwyn Value Investors £ 340.40 - -14.66 0.00
GAM UK Income Acc 1221.30 - -8.14 5.23
Kames Global Equity GBP B Acc £ 2.52 - 0.04 0.21
Europe (ex-UK) Fund ACC-GBP £ 6.40 - 0.05 0.88 [email protected], www.funds.gam.com UK Income Inc 486.26 - -3.24 5.39
Regulated Diversified Monthly Inc B Acc 138.00 - 0.55 5.05
Fidelity Pre-Retirement Bond Fund £ 165.50 - 0.30 1.58 UK Omega Acc 213.16 - -1.51 2.81
LAPIS GBL TOP 50 DIV.YLD-Na-D £ 97.00 - -1.23 4.68 Diversified Monthly Inc B Inc 99.74 - 0.40 5.20
Global Focus £ 5.36 - 0.03 0.59
LAPIS GBL F OWD 50 DIV.YLD-Na-D £ 93.63 - 1.16 - UK Omega Inc 183.86 - -1.30 2.87
Asse
Asset Management
Diversified Growth B Acc £ 1.69 - 0.01 2.62
Index Linked Bond Gross £ 4.89 - 0.02 0.09 McInroy & Wood Portfolios Limited (UK)

Asset Management Asset Management

UK Smaller Cos Inc 1710.88 - -8.78 1.43
Ethical Cautious Managed B Acc £ 1.37 - 0.00 1.74 Easter Alderston, Haddington, EH41 3SF 01620 825867
Japan £ 3.49 - 0.06 0.41
Ethical Cautious Managed B Inc £ 1.19 - 0.00 1.76 Authorised Inv Funds
Long Bond Gross £ 1.29 - 0.00 1.51 Balanced Fund Personal Class Units 5362.90 - 41.00 1.52 Northwest Investment Management (HK) Ltd
Ethical Corporate Bond B Acc £ 2.09 - 0.00 2.79 11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9331 9220
Pacific (Ex Japan) £ 5.18 - 0.04 2.20 Income Fund Personal Class Units 2634.20xd - 8.60 2.83
Genesis Investment Management LLP Ethical Corporate Bond B Inc £ 1.07 - 0.00 2.79 Other International Funds
Select Emerging Markets Equities £ 2.06 - 0.03 1.07 Other International Funds Emerging Markets Fund Personal Class Units 2152.40 - 21.80 1.84 Northwest China Opps Class T $ $ 2839.04 - -78.14 0.00
Ethical Equity B Acc £ 2.21 - 0.01 1.93
Asset Management
Emerging Mkts NAV £ 7.21 - -0.16 0.00
Select Global Equities £ 4.98 - 0.01 0.86 Smaller Companies Fund Personal Class Units 5787.70 - 42.10 1.33 Northwest Feilong Class T $ $ 2006.00 - -74.28 0.00
High Yield Bond B Acc £ 2.84 - 0.01 5.62
Asset Management Asset Management
 UPLOADED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws

FINANCIAL TIMES Monday 6 July 2020 FTfm | 11

FTfm

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

Northwest Fund Class T $ $ 2564.79 - -90.67 0.00 Pictet-Global Sust.Credit HI EUR € 160.75 - 0.44 0.00 LF Ruffer Pacific & Emerging Markets O Acc 344.31 - -1.51 1.03 SI Global Emerging Mkts A Acc 665.98 - 3.34 0.84

Northwest Warrant Class A $ $ 1330.60 - 12.11 0.00 Pictet-Greater China-I USD F $ 810.35 - 2.35 0.00 LF Ruffer Total Return C Acc 477.82 - 0.61 1.41 SI Global Emerging Mkts Leaders A Acc 480.46 - 3.72 0.87

Pictet-Health-I USD $ 353.01 - 4.88 0.00 LF Ruffer Total Return C Inc 310.27 - 0.39 1.43 SI Global Emerging Mkts Sus A Acc 337.71 - 3.94 0.16

Pictet-SmartCity-I EUR € 210.15 - 2.93 - Prusik Investment Management LLP (IRL) LF Ruffer Total Return O Acc 466.60 - 0.58 1.41 SI Indian Sub-Cont A Acc 450.07 - 4.00 0.00 Unicorn Asset Management Ltd (UK)
Enquiries - 0207 493 1331 PO Box 10602, Chelmsford, Essex, CM1 9PD 0845 026 4287
Pictet-India Index I USD $ 111.72 - 2.32 0.00 LF Ruffer Total Return O Inc 302.82 - 0.38 1.43 SI Latin America A Acc £ 2.11 - 0.03 1.05
Regulated Authorised Inv Funds
Oasis Global Mgmt Co (Ireland) Ltd (IRL) Pictet-Indian Equities-I USD F $ 516.36 - 2.78 0.00 Prusik Asian Equity Income B Dist $ 160.51 - 1.27 5.30 SI Worldwide Equity A Acc £ 2.05 - 0.03 0.00 UK Growth A Inc 515.37 - 3.22 1.28
Regulated
Pictet-Japan Index-I JPY F ¥ 17776.63 - 110.03 0.00 Prusik Asia Emerging Opportunities Fund A Acc $ 140.91 - 0.94 0.00 SI Worldwide Equity A Inc £ 2.08 - 0.03 0.00 Mastertrust A Inc F 483.46 - 1.20 0.31
Oasis Crescent Global Investment Fund (Ireland) plc
Oasis Crescent Global Short Term Income Fund I - Class A Dist $ 0.99 - 0.01 2.33 Pictet-Japanese Equities Opp-I JPY F ¥ 10915.51 - -3.47 0.00 Prusik Asia Fund U Dist. £ 207.41 - 3.94 0.00 SI Worldwide Leaders A Acc 487.44 - 5.60 0.21 UK Growth B Inc 519.43 - 3.23 2.13

Oasis Crescent Global Equity Fund $ 30.86 - 0.21 0.51 Pictet-Japanese Equity Selection-I JPY F ¥ 15739.77 - -33.25 0.00 SI Worldwide Sus A Acc £ 2.37 - 0.03 0.00 Mastertrust B Inc F 435.75 - 1.09 1.10

Oasis Crescent Variable Balanced Fund £ 8.99 - 0.08 0.12 Pictet-LATAM Lc Ccy Dbt-I USD F $ 130.03 - 1.29 0.00 SI Worldwide Sus A Inc £ 2.29 - 0.03 0.00 Outstanding British Cos A Acc F 283.84 - 0.72 0.67

OasisCresGl Income Class A $ 10.82 - 0.02 2.80 Pictet-Multi Asset Global Opportunities-I EUR € 128.39 - 0.80 0.00 Outstanding British Cos B Acc F 306.61 - 0.78 1.45

OasisCresGl LowBal D ($) Dist $ 11.80 - 0.06 1.04 Pictet-Nutrition-I EUR € 243.46 - 2.07 0.00 Purisima Investment Fds (UK) (1200)F (UK) UK Smaller Cos A Inc F 492.90 - -1.16 1.95
65 Gresham Street, London, EC2V 7NQ
OasisCresGl Med Eq Bal A ($) Dist $ 12.66 - 0.06 0.37 Pictet-Pacific Ex Japan Index-I USD F $ 419.95 - 10.37 0.00 UK Smaller Cos B Inc F 484.06 - -1.13 2.75
Order Desk and Enquiries: 0345 922 0044
Oasis Crescent Gbl Property Eqty $ 7.41 - 0.03 1.90 Pictet-Premium Brands-I EUR F € 203.72 - 3.70 0.00 Authorised Inv Funds UK Income A Acc F 262.68 - 1.19 5.42
Pictet-Russia Index I USD $ 84.86 - 2.48 0.00 Authorised Corporate Director - Link Fund Solutions UK Income A Inc F 194.68 - 0.89 5.43
Global Total Fd PCG A 311.70 - 2.64 0.57
Pictet-Russian Equities-I USD F $ 81.70 - -0.61 0.00 RobecoSAM (LUX) UK Income B Acc F 288.75 - 1.32 5.25
Global Total Fd PCG B 309.04 - 2.62 0.36 Tel. +41 44 653 10 10 http://www.robecosam.com/
Pictet-Security-I USD F $ 319.35 - 5.79 0.00 UK Income B Inc F 214.12 - 0.98 5.71
Global Total Fd PCG INT 305.18 - 2.59 0.15 Regulated
Omnia Fund Ltd Pictet-Small Cap Europe-I EUR F € 1376.95 - 25.49 0.00 RobecoSAM Sm.Energy/A £ 22.03 - 0.26 1.35
Other International Funds
Pictet-ST Emerg Local Currency Debt-I USD F $ 102.47 - 0.17 0.00 RobecoSAM Sm.Energy/N € 20.37 - 0.31 0.00
Estimated NAV $ 553.18 - 55.05 0.00
Pictet-ST.MoneyMkt-I € 138.00 - 0.00 0.00 RobecoSAM Sm.Materials/A £ 188.89 - 2.09 1.63
Pictet-ST.MoneyMkt JPY I USD ¥ 100719.44 - -2.27 0.00 RobecoSAM Sm.Materials/N € 198.05 - 2.88 0.00 Stonehage Fleming Investment Management Ltd (IRL) WA Fixed Income Fund Plc (IRL)
Purisima Investment Fds (CI) Ltd (JER) www.stonehagefleming.com/gbi Regulated
Pictet-ST.MoneyMkt-ICHF SFr 119.76 - -0.01 0.00 Regulated RobecoSAM Sm.Materials/Na € 129.16 - 1.88 1.64
[email protected] European Multi-Sector € 120.24 - 0.71 3.34
Pictet-ST.MoneyMkt-IUSD $ 145.92 - 0.00 0.00 PCG B 245.21 - 0.65 0.00 RobecoSAM S.HealthyLiv/B € 228.28 - 2.12 0.00 Regulated
Oryx International Growth Fund Ltd
Pictet-Timber-I USD F $ 174.72 - 2.86 0.00 PCG C 239.79 - 0.63 0.00 SF Global Best Ideas Eq B USD ACC $ 208.05 - 1.81 0.00
Other International Funds RobecoSAM S.HealthyLiv/N € 220.09 - 2.04 0.00
NAV (Fully Diluted) £ 9.10 - -0.52 0.00 Pictet-US High Yield-I USD F $ 171.86 - 0.98 0.00 SF Global Best Ideas Eq D GBP INC £ 253.21 - 2.05 0.11
RobecoSAM S.HealthyLiv/Na £ 164.01 - 0.95 1.42
Pictet-USA Index-I USD F $ 291.97 - 1.37 0.00 RobecoSAM S.Water/A £ 270.64 - 2.16 1.56
Pictet-USD Government Bonds-I F $ 767.76 - 0.33 0.00 RobecoSAM S.Water/N € 237.55 - 2.73 0.00
Pictet-USD Short Mid-Term Bonds-I F $ 144.43 - 0.09 0.00

Pictet-USD Sov.ST.Mon.Mkt-I $ 109.68 - 0.00 0.00 Thesis Unit Trust Management Limited (UK)
Exchange Building, St Johns Street, Chichester, West Sussex, PO19 1UP
Pictet-Water-I EUR F € 406.78 - 3.87 0.00 Authorised Funds
TM New Court Fund A 2011 Inc £ 15.98 - 0.00 0.15
TM New Court Fund - A 2014 Acc £ 16.12 - 0.01 0.15

TM New Court Equity Growth Fund - Inc £ 16.89 - 0.01 0.21

Yuki - Co, LLC (IRL)
Tel +18015545191 www.yukifunds.com
Ram Active Investments SA Regulated
www.ram-ai.com Yuki Mizuho Umbrella Fund
Orbis Investments (U.K.) Limited (GBR)
Other International Funds Yuki Mizuho Japan Dynamic Growth ¥ 5997.00 - 97.00 0.00
28 Dorset Square, London, NW1 6QG
RAM Systematic Emerg Markets Eq $ 172.43 - 3.45 -
www.orbis.com 0800 358 2030 Yuki Japan Low Price ¥ 32047.00 - 418.00 0.00
Regulated RAM Systematic European Eq € 414.19 - 6.22 - Rubrics Global UCITS Funds Plc (IRL) Yuki Asia Umbrella Fund
Orbis OEIC Global Cautious Standard £ 9.88 - 0.02 0.03 www.rubricsam.com
RAM Systematic Funds Global Sustainable Income Eq $ 112.91 - 1.55 0.00 Yuki Japan Rebounding Growth Fund JPY Class ¥ 27779.00 - 466.00 0.00
Orbis OEIC Global Balanced Standard £ 13.98 - 0.06 0.00 Regulated
RAM Systematic Long/Short Emerg Markets Eq $ 101.95 - 0.30 - Yuki Japan Rebounding Growth Fund USD Hedged Class $ 1141.20 - 19.15 0.00
Rubrics Emerging Markets Fixed Income UCITS Fund $ 135.77 - 0.18 0.00
Orbis OEIC Global Equity Standard £ 17.13 - 0.13 0.00
Platinum Capital Management Ltd RAM Systematic Long/Short European Eq € 133.81 - -0.32 - Rubrics Global Credit UCITS Fund $ 17.10 - 0.02 0.00
Orbis OEIC UK Equity Standard £ 6.75 - 0.12 0.00 Other International Funds RAM Systematic North American Eq $ 311.77 - 2.05 - Rubrics Global Fixed Income UCITS Fund $ 182.38 - 0.10 0.00
Platinum All Star Fund - A $ 127.55 - - -
RAM Tactical Global Bond Total Return € 152.87 - 0.25 - Q Rubrics India Fixed Income UCITS Fund $ 11.25 - 0.08 0.00
Platinum Global Growth UCITS Fund $ 11.89 - 0.16 0.00
RAM Tactical II Asia Bond Total Return $ 151.22 - 0.20 - Toscafund Asset Management LLP (UK) Zadig Gestion (Memnon Fund) (LUX)
Platinum Essential Resources UCITS Fund SICAV USD Class E $ 7.15 - -0.04 0.00 Rubrics India Fixed Income UCITS Fund $ 97.57 - 0.72 0.00
www.toscafund.com FCA Recognised
Platinum Global Dividend UCITS Fund $ 50.76 - 0.25 0.00 Authorised Funds Memnon European Fund - Class U2 GBP £ 177.72 - 2.23 0.00
Aptus Global Financials B Acc £ 3.02 - 0.05 6.70
Aptus Global Financials B Inc £ 2.09 - 0.03 9.41

RLUM Ltd (UK)

Scottish Friendly Asset Managers Ltd (UK)
5th Floor, Churchgate House, 56 Oxford Street, Manchester M1 6EU 03456 057777 Scottish Friendly Hse, 16 Blythswood Sq, Glasgow G2 4HJ 0141 275 5000
Authorised Inv Funds Authorised Inv Funds
Data Provided by
Royal London Sustainable Diversified A Inc £ 2.32 - 0.01 0.70 Managed Growth 275.50 - 2.40 0.00
Royal London Sustainable World A Inc 320.60 - 3.00 0.11 Toscafund Asset Management LLP
UK Growth 303.60 - 3.90 0.00
www.toscafund.com
Royal London Corporate Bond Mth Income 92.95 - 0.10 3.62
Tosca A USD $ 276.39 - 7.57 -
Pictet Asset Management (Europe) SA (LUX)
Royal London European Growth Trust 171.50 - 1.10 0.22
15, Avenue J.F. Kennedy L-1855 Luxembourg
Tel: 0041 58 323 3000 Royal London Sustainable Leaders A Inc 671.70 - 1.30 0.67
Tosca Mid Cap GBP £ 172.98 - 6.71 -
www.morningstar.co.uk
Tosca Opportunity B USD $ 267.22 - 10.20 -
FCA Recognised
Royal London UK Growth Trust 514.60 - -1.30 2.16
Data as shown is for information purposes only. No

Slater
Pictet-Absl Rtn Fix Inc-HI EUR € 111.08 - 0.16 0.00 Pegasus Fund Ltd A-1 GBP £ 41.38 - 1.60 0.00 offer is made by Morningstar or this publication.
Royal London UK Income With Growth Trust 189.30 - -0.70 5.99
Pictet-Asian Equities Ex Japan-I USD F $ 332.42 - 0.89 0.00 Polar Capital Funds Plc (IRL)
Pictet-Asian Local Currency Debt-I USD F $ 180.33

Pictet-Biotech-I USD F $ 1072.19

-

-
-0.29 0.00

16.77 0.00
Regulated
Automation & Artificial Intelligence CL I USD Acc $ 13.83 13.83 0.06 0.00
Asian Financials I USD $ 364.25 364.25 2.64 0.00
Royal London US Growth Trust

Additional Funds Available

271.80

Please see www.royallondon.com for details

- 2.30 0.00

Investments
Pictet-CHF Bonds I CHF SFr 508.50 - 0.43 0.00
Biotechnology I USD $ 32.24 32.24 0.35 0.00
Pictet-China Index I USD $ 172.48 - 6.30 0.00
Emerging Market Stars I USD Acc $ 11.79 - 0.19 0.00
Pictet-Clean Energy-I USD F $ 120.75 - 2.47 0.00
European Ex UK Inc EUR Acc € 11.13 11.13 0.21 0.00
Pictet-Digital-I USD F $ 510.95 - 9.81 0.00 Slater Investments Ltd (UK)
Financial Opps I USD $ 10.71 - 0.08 2.98 www.slaterinvestments.com; Tel: 0207 220 9460
Pictet-Em Lcl Ccy Dbt-I USD F $ 178.07 - 1.00 0.00
GEM Income I USD $ 10.63 - 0.14 0.00 FCA Recognised
Pictet-Emerging Europe-I EUR F € 396.75 - -1.63 0.00 Slater Growth 546.58 546.58 2.34 0.00
Global Convertible I USD $ 14.36 14.36 0.07 0.00
Pictet-Emerging Markets-I USD F $ 677.03 - 3.17 0.00 Slater Income A Inc 114.99 114.99 -1.03 5.22
Global Insurance I GBP £ 6.51 - 0.01 0.00
Pictet-Emerging Markets Index-I USD F $ 292.33 - 8.56 0.00 Slater Recovery 258.80 258.80 1.10 0.00
Global Technology I USD $ 68.48 - 0.33 0.00
Pictet-Emerging Corporate Bonds I USD $ 132.31 - 0.31 0.00 Slater Artorius 221.39 221.39 -1.63 0.45
Healthcare Blue Chip Fund I USD Acc $ 14.81 14.81 0.12 0.00
Pictet-Emerging Markets High Dividend I USD $ 124.25 - 4.05 0.00
Healthcare Opps I USD $ 56.03 - 0.38 0.00 Troy Asset Mgt (1200) (UK)
Pictet-Emerging Markets Sust Eq I USD $ 98.99 - 0.32 0.00 Ruffer LLP (1000)F (UK) 65 Gresham Street, London, EC2V 7NQ
Income Opportunities B2 I GBP Acc £ 2.04 2.04 0.01 -
65 Gresham Street, London, EC2V 7NQ Order Desk and Enquiries: 0345 608 0950
Pictet-EUR Bonds-I F € 640.50 - 2.96 0.00
Japan Value I JPY ¥ 98.77 98.77 0.14 0.00 Order Desk and Enquiries: 0345 601 9610 Authorised Inv Funds
Pictet-EUR Corporate Bonds-I F € 216.88 - 0.75 0.00 Authorised Inv Funds Authorised Corporate Director - Link Fund Solutions
North American I USD $ 24.72 24.72 0.12 0.00
Pictet-EUR Government Bonds I EUR € 178.42 - 0.79 0.00 Authorised Corporate Director - Link Fund Solutions Trojan Investment Funds
UK Absolute Equity I GBP £ 15.47 15.47 0.00 0.00 LF Ruffer European C Acc 624.39 - 0.57 0.65 Spectrum Fund O Acc 238.94 - 0.65 0.60
Pictet-EUR High Yield-I F € 273.96 - 0.82 0.00
UK Val Opp I GBP Acc £ 10.06 10.06 -0.08 0.00 LF Ruffer European C Inc 114.06 - 0.11 0.70 Spectrum Fund O Inc 226.99 - 0.62 0.60
Pictet-EUR Short Mid-Term Bonds-I F € 136.99 - 0.09 0.00
LF Ruffer European O Acc 609.75 - 0.56 0.34 Trojan Ethical O Acc 115.52 - 0.58 0.15
Pictet-EUR Short Term HY I EUR € 122.99 - 0.21 0.00
LF Ruffer Equity & General C Acc 447.55 - -0.22 0.51 Trojan Ethical O Inc 115.37 - 0.58 0.12
Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 100.19 - -0.01 0.00
LF Ruffer Equity & General C Inc 410.12 - -0.20 0.51 Trojan Ethical Income O Acc 131.22 - 0.23 2.92
Pictet-Euroland Index IS EUR € 153.92 - 3.71 0.00
Polar Capital LLP (CYM) LF Ruffer Equity & General O Acc 437.08 - -0.22 0.20 Trojan Ethical Income O Inc 116.33 - 0.21 2.98
Pictet-Europe Index-I EUR F € 193.07 - 3.76 0.00 Regulated Stewart Investors (UK)
LF Ruffer Equity & General O Inc 404.67 - -0.20 0.22 23 St Andrew Square, Edinburgh, EH2 1BB Trojan Fund O Acc 345.61 - 1.31 0.55
Pictet-European Equity Selection-I EUR F € 608.17 - -6.71 0.00 European Forager A EUR € 167.85 - -5.09 0.00
LF Ruffer Gold C Acc 316.65 - 7.93 0.00 [email protected]
Trojan Fund O Inc 280.45 - 1.06 0.55
Pictet-European Sust Eq-I EUR F € 285.33 - -1.61 0.00 Client Services: 0800 587 4141
LF Ruffer Gold C Inc 191.64 - 4.79 0.00 Dealing Line: 0800 587 3388 Trojan Global Equity O Acc 417.77 - 3.22 0.48
Pictet-Global Bds Fundamental I USD $ 133.30 - 0.29 0.00
LF Ruffer Gold O Acc 309.13 - 7.74 0.00 Authorised Funds Trojan Global Equity O Inc 345.26 - 2.66 0.48
Pictet-Global Bonds-I EUR € 196.05 - 0.98 0.00 SI Asia Pacific A Acc 1277.29 - 18.28 0.37
LF Ruffer Japanese C Inc 143.00 - -2.87 0.29 Trojan Global Income O Acc 132.78 - 0.38 2.97
Pictet-Global Defensive Equities I USD $ 190.48 - 2.91 0.00 Private Fund Mgrs (Guernsey) Ltd (GSY)
SI Asia Pacific A Inc £ 2.29 - 0.03 0.40
Regulated LF Ruffer Japanese C Acc 307.07 - -6.17 0.29 Trojan Global Income O Inc 119.41 - 0.35 3.03
Pictet-Global Emerging Debt-I USD F $ 446.79 - 2.32 0.00 Monument Growth 30/06/2020 £ 475.18 479.71 -4.53 1.61 SI Asia Pacific Leaders A Acc 727.69 - 11.13 0.38
LF Ruffer Japanese O Acc 299.50 - -6.01 0.14 Trojan Income O Acc 325.20 - 0.29 4.03
Pictet-Global Env.Opport-I EUR € 255.20 - 3.06 0.00 SI Asia Pacific Leaders A Inc £ 2.48 - 0.04 0.31
LF Ruffer Pacific & Emerging Markets C Acc 352.88 - -1.56 1.31 Trojan Income O Inc 171.74 - 0.16 4.15
Pictet-Global Megatrend Selection-I USD F $ 341.72 - 5.57 0.00 SI Asia Sustainability A Acc 576.96 - 8.25 0.16
LF Ruffer Pacific & Emerging Markets C Inc 96.98 - -0.43 1.38
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OPINION

Investors should not bet on a silver boom

LAST WORD metals, such as nickel, copper and
cobalt. As one of them says: “There is
John much more emphasis on capital
spending discipline. With silver, you
Dizard have significant above ground
stocks.”
And that is the problem for the sil-
ver enthusiasts. Yes, the world’s mine

I
f gold was the metal that drove output runs short of industrial,
the conquistadors mad, in recent investment and jewellery demand.
decades silver has had the power But there are billions of ounces of
to induce near-psychotic states silver that has already been mined
among its holders. I almost wrote and then stored as bullion or turned
“investors”, but that is too dispassion- into retail artefacts which can easily
ate a term for the true believers in be melted down. That probably
silver. In recent months, gold has explains the apparent price resist-
become a respectable part of institu- ance when the metal trades near $20.
tional core strategies, providing a use- The good news is that unlike gold,
ful anchor to windward in the post- silver is really too cheap to be worth
Covid-19 markets. faking. On the other hand, it is also
The price of silver, though, has too cheap to be of much interest to big
been left behind by the now fashiona- banks. Forty or fifty years ago, there
ble cohort of gold bugs. Silver is still were rafts of precious metal groups at
up for the year in dollar terms at just big banks, shuttling tonnes of metal
above $18 per troy ounce. The gold/ through their vaults.
silver ratio reached its all-time peak There are billions of ounces of silver that has been mined and then stored as bullion — Luke Sharrett/Bloomberg In recent years, the physical trade
on March 18, when the silver price in precious metals has attracted too
collapsed to $11.94. At that point the kind of American silver is part of an “silver stackers” who squirrel away sell the metals or related securities, many compliance costs and scandals
spot price of a troy ounce of gold was ideology. stacks of silver coins to trade for has a house view that silver prices to be interesting to most banks. Even
worth 126.5 ounces of silver. It goes along with owning a semi- essentials after societal collapse. will not sink as they did in March, but first-rank hedge funds have difficulty
Since then the “GSR”, as silverados automatic rifle with lots of spare Do not argue with these people. Just are likely to trade above $16 and getting ready access to the physical
would put it, has drifted down to ammunition. Canned goods. Conspir- back off, without making any sudden below $20. market for gold. Silver? They’ll call
below 100, where it has been bounc- acy theories. Contempt for urban lib- or threatening movements. That is not enough to spark a silver back later.
ing gently since the end of May. For erals. They are way past voting Your true silver believer thinks the mining boom. The newest significant If you ignore these cautions and are
the silver people, the relative strength Republican. The most committed are GSR should be much, much lower silver mine, at Sotkamo in Finland, still intrigued by silver, you could be
in the price of gold is a buy signal. But than 96 or 98 to one. And, to be fair to has not been a runaway success since haunted by the ghost of Nelson Bun-
they believe almost anything is a buy Unlike gold, silver is too them, Isaac Newton would agree, if he it opened last year. The management, ker Hunt. Almost 40 years to the day
signal. was around today. Newton believed which had not, reportedly, fully before the March crash in silver, he
Most non-US metals people think
cheap to be worth faking, the GSR should be fixed at 16 to 1. price-hedged its production, has was forced to meet billion-dollar-
of silver in terms of its utility but it is also too cheap to Metal markets professionals do not recently changed. bank-crisis-triggering margin calls
for tableware, jewellery, or superior share that view. CPM, an industry Mining investors are more enthusi- for his silver positions. From the peak
electrical conductivity. For a certain
be of interest to banks advisory firm that does not trade or astic about the prospects for other of Texas rich, he became bankrupt.

How index investing can drive sustainable finance transition

VIEWPOINT managers can contribute to reaching Data requirements also argue for Far from being absentee landlords, with the inability to vote misses the
sustainable goals. This argument is index-based investment. The sheer index fund managers have the ability point: not only can index-based man-
Lionel flawed. Index-based investing is a key
actor in driving the sustainable
amount of information needed to
ensure that a portfolio follows a set
to influence corporate behaviour
through voting — in some ways even
agers use their vote in the same way
as active managers, but they also have
Paquin finance transition for two reasons. decarbonisation trajectory calls for a more so than active managers. the ability to use their vote to advance
The first is that index providers are quantitative investment approach. Index-based managers are invested causes that matter to investors, such
providing sophisticated, science- This is best achieved via an index in portfolio companies for as long as as sustainable investment and the
based sustainable benchmarks. It’s rather than via stock-picked alpha. those companies form part of the rel- fight against climate change.

T
he Covid-19 crisis is a incorrect to argue that the bench- If we want to have a chance to shift evant index. Rises or falls of an indi- Lyxor has no axe to grind in the
stark reminder of the marks of index-tracking funds and capital at scale while being transpar- vidual stock are, therefore, of no con- debate over active and passive man-
vulnerability of human ETFs are backward-looking and ent and disciplined, the passive sequence — it is ultimately the track- agement since we offer both prod-
societies and our insensitive to climate change risks. approach has a clear part in the proc- ing of the overall index that matters. ucts. As a large ETF provider, we can
dependence on the bal- Europe is an example of change. ess. Index fund investors have been In contrast, choosing to vote for a be “very active in passive”, using our
ance of natural systems. It is true for The EU has been working to intro- voting with their euros, dollars and resolution that may benefit a more vote to make a difference.
health issues but also for biodiversity duce two types of carbon transition pounds to make the shift en masse to sustainable economy, but could hurt The reasons why index-tracking
and climate issues. indices, the EU Climate Transition sustainable investing. Lyxor calcu- an individual company’s share price funds and ETFs have grown seven-
Some observers even argue that cli- and EU Paris-aligned benchmarks. lates that, as at June 2019, passive ESG short term, can be a tough responsi- fold in size since 2008 are well-
mate change could foster the emer- These benchmarks are a radical fund assets had grown at a rate of 33 bility for an active manager. known. Passive funds have a cost
gence of future pandemics, as global approach. For the first time, indices per cent a year in the past five years, This is not to pit active against pas- advantage over their active cousins,
warming could facilitate the spread of are being used explicitly to redirect three times faster than the growth of sive when it comes to voting, but only the indices they track are transparent
viruses. That’s why investors of all investment flows. Both indices are active ESG funds. to stress that voting can be a potent and they offer easy diversification.
kinds must work towards a more sus- aligned with a 7 per cent decarbonisa- The second reason for index funds tool in the hands of passive managers, With high growth in indexing, it is
tainable model — and both active and tion trajectory, aligned with the Inter- playing a critical climate transition because the act of voting is by nature inevitable that ETFs will play a lead
passive asset management have criti- governmental Panel on Climate role is that the managers of these for them disconnected from that of role in the sustainable transition.
cal roles to play. Change’s scenario of a maximum 1.5 funds’ assets are ideally placed to portfolio management per se.
It is often suggested that only active degree temperature rise. engage with corporate management. Equating index-based investing The writer is chief executive of Lyxor AM