WEDNESDAY 16 DECEMBER 2020 WORLD BUSINESS NEWSPAPER EUROPE
Into the future Prosecuting Trump Martin Wolf What will the world look like in five The potential criminal investigations If interest rates stay low, stock years? — SPECIAL REPORT waiting in the wings — BIG READ, PAGE 15 markets will only grow — PAGE 17
Oh no it isn’t Briefing Panto season i Moderna jab ‘highly effective’, FDA finds The US Food and Drug Administration’s report on Moderna’s Covid-19 vaccine found the jab to be safe closes early and “highly effective”, clearing the way for a second inoculation to win emergency approval.— PAGE 2 Guests take a selfie outside the Palla- dium theatre in London’s West End yes- i China data herald economic recovery terday as the pantomime season comes Beijing has reported industrial production and to an abrupt and premature end follow- retail sales jumped 7 per cent and 5 per cent year on ing tighter Covid-19 restrictions in Eng- year respectively, as economic recovery from the land’s capital. coronavirus pandemic powers ahead.— PAGE 3 Boris Johnson’s government is under increasing pressure to rewind a relaxa- i Hungary sets legal curbs on gay rights tion of rules over Christmas as infection Hungary’s parliament has rates continue to rise across the UK. passed laws limiting gay rights, Two leading health journals pub- changing electoral rules and lished a rare joint article yesterday decreasing oversight of public warning that allowing three separate funds, as prime minister Viktor households to travel across the country Orban promotes “Christian to stay with each other during the fes- family values”.— PAGE 3 tive period was about to “blunder into another major error that will cost many i McConnell acknowledges Biden win lives”. Mitch McConnell has congratulated Joe Biden on Report page 2 winning the US presidential election, making the Toby Melville/Reuters Senate’s top Republican the highest-ranking party figure yet to break from Donald Trump.— PAGE 4 i Airlines warn on EU data rule breach Carriers fear they will be in breach of strict European rules on passenger data for flights to Britain if they keep planes flying in the event of the Brussels threatens Big Tech with UK leaving the EU without a deal.— PAGE 5 i Cleveland to ditch ‘Indians’ name Cleveland’s Major League Baseball team in the US has announced that it is to drop “Indians” from its break up to curb monopoly power name, after more than a century in use, once it has settled on an alternative.— PAGE 8 i Thai protests fail to sway stance on king 3 EU drafts new digital law 3 Privacy fears and low taxes spur hostility 3 Big fines weighed A wave of protests in Thailand by demonstrators seeking a new constitution and reform to the Javier Espinoza — Brussels US tech companies such as Amazon, The companies must also have at least timetable for when they will come into monarchy may have sparked debate but has failed Google and Facebook face growing hos- 45m users and be active in at least three force. But the new rules are likely to face to bend the state’s existing position.— PAGE 3 The EU has raised the stakes in its tility in Europe for paying low taxes, EU states, the draft regulation said. at least two years of political wrangling efforts to curb Big Tech by threatening invading privacy and crushing rivals. “We need to act quickly,” said Thierry and debates before approval. to break up companies that repeatedly However, the prospect of breaking up Breton, one of the EU commissioners in The regulations would be among the Datawatch engage in anti-competitive behaviour in a US tech group would be daunting, said charge of the regulations. Otherwise, he world’s most stringent on tech compa- the first overhaul of the bloc’s rules for Thomas Vinje, a partner at law firm Clif- warned, “we may destroy competition Commissioner nies. They are also an acknowledgment No rush for millennials While more than When US adults say they want a internet businesses for two decades. ford Chance. “I don’t believe the EU and opportunities for some players that Thierry Breton: in the EU that competition law has Covid- vaccine () 40 per cent of the youngest adults in A draft of the new Digital Markets Act would risk breaking down [the alliance could have been successful innovators”. ‘We need to act failed to curb the growth and market As soon as possible Wait a while warned that technology companies that with the US] by threatening to break up Separately, the EU also released the quickly [or else] power of the Silicon Valley giants. Never No answer the US say they would have a break competition rules will face fines American icons,” he said. draft of its Digital Services Act, which is we may destroy Paul Tang, a Dutch socialist MEP, of up to 10 per cent of their global reve- “The Biden administration is not designed to force tech companies to opportunities said: “The commission’s plans are good Covid-19 vaccine, Gen Z: Under the number nearly nues. Brussels also said the EU would going to let that happen easily.” take more responsibility for illegal beh- for. . . successful but not good enough to curb the monop- Millennials: - halves for the move to break up any technology com- The EU said it would hold technology aviour on their platforms. It warned innovators’ oly power of tech giants. Instead, the Gen X: - generation above pany fined three times within five years. groups to a higher standard of regula- that companies that do not police them- commission should take direct aim and them. Meanwhile, Margrethe Vestager, the commis- tion, classing companies as “gatekeep- selves will face fines of up to 6 per cent of at least dismantle the perverse business Boomers: - the majority of sioner in charge of competition and dig- ers”, with the power to dictate their global revenues. model of these tech giants: monetising Silent: over 75s said they ital policy, said the EU would not hesi- markets if they have annual revenues in The commission’s draft proposals will personal data via advertising.” Sources: Fortune, SurveyMonkey would get a jab as tate to “impose structural remedies, the European economic area of at least be voted on by the European Parliament Editorial Comment page 16 (Nov - Dec ) soon as possible. divestitures, that sort of thing”. €6.5bn in the past three financial years. and Council of Ministers. There is no Lex page 18 UK draws up plans to rival Singapore with post-Brexit shipping tax regime
Peter Foster — Brighton cadets directly on behalf of shipping flag has declined by a third, according to Jim Pickard — London companies has also been mooted. a report prepared for the government, The UK is drawing up plans to turn The proposals, described as “blue-sky because of uncertainty over the future. London into a rival for Singapore as a thinking” by one person familiar with The proposals say this could partly be hub for shipping companies to register their contents, are being worked on as addressed with a “hearts and minds” Sanctions on Turkey set their vessels following the end of the EU-UK trade talks reach a crunch point campaign to persuade shipping compa- tricky entrance for Biden Brexit transition period, according to in Brussels — with the issue of managing nies to register their vessels in the UK. people briefed on the proposals. UK regulatory divergence the biggest According to calculations provided to Analysis i PAGE 3 bone of contention. the government, revamping the UK’s Industry bodies and unions have been One proposal is that companies shipping tax and regulation regime canvassed over the reform of the ship- choosing to register their vessels in the could be worth £3.7bn over three years Austria €3.90 Malta €3.70 Bahrain Din1.8 Morocco Dh45 ping industry’s so-called tonnage tax UK could face a “lighter touch” test for and create 2,500 jobs directly, and Belgium €3.90 Netherlands €3.90 after January 1 2021, when the UK is no how much of their shipping is managed 25,000 in related companies. Bulgaria Lev7.50 Norway NKr40 Croatia Kn29 Oman OR1.60 longer subject to the EU’s state aid in the UK — a key requirement under David Blumenthal, a tax partner with Cyprus €3.70 Pakistan Rupee350 Czech Rep Kc105 Poland Zl 20 regime on subsidies. EU tonnage tax regimes. The proposal Clyde & Co, who handles tonnage tax Denmark DKr38 Portugal €3.70 Plans include expanding the scope of seen by the Financial Times repeatedly issues, said the UK’s departure from the Egypt E£45 Qatar QR15 Finland €4.70 Romania Ron17 the UK scheme by counting oil rigs as references Singapore as a benchmark EU was an opportunity. France €3.90 Russia €5.00 Germany €3.90 Serbia NewD420 “ships” for tax purposes — which is not for the UK’s post-Brexit aspirations. “The idea is that if we’re not con- Gibraltar £2.90 Slovak Rep €3.70 allowed under EU rules controlling the The Department for Transport said: strained by EU state aid, we could have Greece €3.70 Slovenia €3.70 Hungary Ft1200 Spain €3.70 subsidy of maritime transport — in “We do not comment on leaks.” more ability to do things that would India Rup220 Sweden SKr39 Italy €3.70 Switzerland SFr6.20 order to attract more business. A £30m Since the Brexit vote in 2016, the ton- make the UK more attractive to ship- Lithuania €4.30 Tunisia Din7.50 government-funded scheme to train nage of ships registered under the UK ping companies,” he said. Luxembourg €3.90 Turkey TL19 North Macedonia Den220 UAE Dh20.00
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DECEMBER 16 2020 Section:FrontBack Time: 15/12/2020 - 19:06 User: andy.puttnam Page Name: 1FRONT USA, Part,Page,Edition: EUR, 1, 1 2 ★ FINANCIAL TIMES Wednesday 16 December 2020
INTERNATIONAL
Pandemic UK restrictions Johnson urged US finds Moderna vaccine ‘highly effective’ to rethink FDA declares treatment expand access to Covid-19 vaccines in cinated group. There were no deaths stopping people developing Covid-19 body in a bubble of fat to teach the festive rules the US, where the pandemic has killed from Covid-19 in either group. disease. But if the vaccine can also stop immune system to respond to the virus. safe, raising prospect more than 300,000 people, according to Moderna’s vaccine may also be the the infection, it could help control the The FDA scientists said there were no of wider access this week Johns Hopkins University data. While first to show some impact on asympto- spread from person to person. People safety concerns that should prevent an or put ‘many the US government has been offering to matic infections, according to a docu- who become infected can spread the emergency authorisation, but there was help Pfizer expand manufacturing ment submitted by the company after virus before they show symptoms — and not enough evidence for how the vac- Hannah Kuchler — New York lives’ at risk Kiran Stacey — Washington capacity, it secured another order for 30-40 per cent never show symptoms. cine worked in under-18s and pregnant 100m Moderna vaccines last week, If the vaccine can stop The report will be examined by an and breastfeeding women, who were The US regulator has found Moderna’s bringing its total to 200m. outside panel of experts, who will give a not in the trials. Sarah Neville and coronavirus vaccine to be safe and The FDA report said: “The two-dose the infection, it could recommendation tomorrow on whether The most common side effects for the Jasmine Cameron-Chileshe — London “highly effective”, clearing the way for a vaccination regimen was highly effec- help control the spread to approve the vaccine on an emergency Moderna vaccine were pain at the injec- The pressure on Boris Johnson to second jab to receive emergency use tive in preventing PCR-confirmed Cov- basis for people aged 18 and over. The tion site, fatigue and headache. There rethink a relaxation of Covid-19 authorisation this week. id-19 occurring at least 14 days after from person to person FDA will give its final decision after that. were no cases of allergic reaction, as has restrictions over Christmas grew yes- The US Food and Drug Administra- receipt of the second dose.” Moncef Slaoui, President Donald been seen in two participants in Pfizer’s terday when two health journals pub- tion report on Moderna’s vaccine trials, After both jabs, the vaccine was 94.1 its original application. According to the Trump’s vaccine tsar, said on Monday vaccination programme in the UK. lished a rare joint article warning the published yesterday, suggested immu- per cent effective in a trial of about drugmaker, just 14 people who received he expected Moderna’s vaccine to be There were cases of potential side UK prime minister was about to “blun- nity starts about 10 days after the first of 30,000 participants. The vaccine was the vaccine during a clinical trial tested authorised this week. It is based on the effects similar to those found in Pfizer’s der into another major error that will two injections, much like the one made less effective in people over the age of positive for Covid-19 but did not show same messenger ribonucleic acid, or data. Three participants experienced cost many lives”. by Pfizer and BioNTech, which received 65, with an efficacy rate of 86.4 per cent. symptoms, compared with 38 partici- mRNA, technology as the Pfizer/BioN- Bell’s palsy, a weakness of facial mus- emergency use authorisation last week. There were 30 severe cases of Covid-19 pants who received only a placebo. Tech vaccine. A genetic code to the cles, but one in the placebo group. The concerted message from the BMJ A second approval could significantly in the placebo group but none in the vac- So far, all the vaccines have focused on virus’s spike protein is delivered into the Anjana Ahuja see Opinion and the Health Service Journal — only the second in their century-old histories — came amid alarm over the conse- quences for the health service of a surge in cases at a time of year when it is under greatest strain from winter ailments. Netherlands Keir Starmer, leader of the opposition Labour party, has also called on the prime minister to review the planned Retailers reel festive easing. The government had “lost control of infections, putting our from curbs economy and our NHS at grave risk in the new year”, Sir Keir said. Writing before a ministerial meeting today to review the tiered restrictions A street in Amsterdam is almost for England, the medical journals said deserted yesterday as a tough second that when the government had devised lockdown came into force in the the plans to soften curbs over Christmas Netherlands, leading to the closure of it had assumed the Covid-19 demand on shops during the busiest and most the NHS would be decreasing. lucrative part of the year. “But it is not, it is rising, and the emer- “Obviously it is a big loss, this time gence of a new strain of the virus has of year is extremely important to us,” introduced further potential jeopardy.” said Robert Reuter, the owner of City Hospital admissions and deaths have Diamonds. “It is a very hard decision, risen in recent weeks and, the journals it is bitter for us.” said, the government had been too slow The lockdown comes as to introduce curbs in the spring and coronavirus infections rose to record again in the autumn. “It should now levels in the past week. All schools reverse its rash decision to allow house- and non-essential stores will be hold mixing and instead extend the tiers closed for at least five weeks, along over the five-day Christmas period in with hairdressers, beauty salons, order to bring numbers down in the gyms, museums and zoos. advance of a likely third wave.” The national shopkeepers’ They urged ministers to review and association warned of the strengthen the tier structure, which “disastrous” effects on retailers. “For they said had failed to suppress rates of many shops this is more than they infection and hospital admissions. can bear,” it said. Reuters, Amsterdam Unless action was taken to change the trajectory, hospitals in England were Piroschka van de Wouw/Reuters likely to have just short of 19,000 Covid patients on New Year’s Eve — almost exactly the same as the 18,974 peak of Rule of law the first wave on April 12. In a letter to Mr Johnson, Sir Keir said it had become clear over recent days that the tier system introduced two Taxpayers alert to misuse of recovery funds, warns EU weeks ago had failed to control trans- mission of Covid-19. “Sadly, it does now appear that the Michael Peel and Sam Fleming which was a response to concerns about powers in an “activist” way, but would on their operation. “There is a big from observers including George Soros, government has — once again — lost Brussels growing authoritarianism and corrup- be “precise and transparent”. The com- demand for accountability from EU the billionaire backer of liberal causes, control of infections, putting our econ- EU taxpayers’ trust in the bloc’s ability tion in some member states. mission plans to assess adherence as institutions,” she said. “And one of those who branded it a cave-in to “extortion” omy and our NHS at grave risk in the to safeguard their money will be dam- Ms Jourova said the EU had “plenty of soon as the rules come into force in the biggest demands . . . is: ‘We are giving from Hungary and Poland. Some Euro- new year,” he said. aged if Brussels fails to wield new pow- work” to do to convince citizens “we are new year, she said, while working from you the money but you need to make pean parliamentarians have also ques- “If you conclude with government sci- ers to withhold funds from countries doing proper things with their money” “day one” to create detailed guidelines sure it will not pay for the wrong things, tioned whether it breaks EU law entists that we need to take tougher that misuse them, a senior European as it attempted to revive the region’s the wrong people, the wrong systems’ — because it constrains the commission’s action to keep people safe over Christ- Commission official has warned. coronavirus-ravaged economies. I mean political systems.” ability to act. mas, then you will have my support.” “When you distribute more money, The rule of law plan won the go-ahead Ms Jourova said she hoped the ECJ The prime minister’s spokesperson The “river of money” created by the you should also bring in more guaran- last week after EU leaders agreed to a would not take years to decide on the said the government still intended to EU’s €1.8tn pandemic economic recov- tees so people can trust you will protect non-binding declaration to assure Hun- matter. She added that she hoped the relax Covid-19 measures from Decem- ery package highlighted the need for the it,” she said. “If you don’t have that trust, gary and Poland that they would not be existence of the mechanism would in ber 23 but stressed that the guidance extra safeguards, said Vera Jourova, a the willingness of taxpayers to contrib- singled out under the new regime. Both itself act as a “very strong” deterrent to was being kept “under constant review”. commission vice-president, who vowed ute to the European budget will go countries are the subject of so-called wrongdoing by member states. Steve Barclay, chief secretary to the to move quickly to assess capitals’ com- down.” Article 7 disciplinary proceedings that “I do not leave anyone in any doubt Treasury, said that while the public pliance with the rules. Ms Jourova acknowledged the way have stalled because each has vowed to that I am ready to use this tool when would not be criminalised for visiting EU leaders last week finally approved the commission used the powers would veto action against the other. necessary,” said Ms Jourova, adding that families over the five-day window, peo- rule of law checks on payouts from the put it under “incredibly severe scru- ‘It will be a stress test The rule of law compromise also gives the rule of law played an essential “uni- ple ought keep mixing to the minimum. bloc after Poland and Hungary dropped tiny” from member states, the Euro- also for us, but I am the European Court of Justice a role in fying role” in holding the European bloc “People shouldn’t misinterpret what opposition that threatened to delay the pean Parliament and the public. “It will judging the legality of the new mecha- together. the guidelines say. It is not saying that entire budget. The two countries lifted be a stress test also for us, but I am sure sure we can do it’ nism, should it be challenged by a mem- “If we have failures in some member people must go and see family . . . It is their veto after receiving concessions on we can do it,” she said. Vera Jourova ber state in court even before it is used. states, then the degradation of the sys- important that people do the minimum the application of the new mechanism, She said Brussels would not use its The outcome has sparked criticism tem is obvious,” she added. that is possible,” he said.
Sweden MAKE A SMART INVESTMENT Subscribe to the FT today at FT.com/subscription Stockholm blamed for virus strategy that ‘failed’ elderly people
Richard Milne F WORLD BUSINESS NEWSPAPER ha e s a ds e ub ic o re a d governments that also possessed this tion of deaths among the elderly as of persuading doctors into care for the
Trump vs the Valley A Five Star plan? Dear Don... Nordic and Baltic Correspondent Tech tita s eedto i i ise ta y s o u istsaretryi to oo ay s irststabatthebrea u information,” it added. other European countries but its death elderly. o itica ris T TT the oor etter T S S
Lloyd’s of BrusselsInsurance market K . ;Channel Islands £3.80; Republic of Ireland €3.80 SATURDAY1APRIL / SUNDAY 2 APRIL 2017 HMRC warns Briefing The scathing report from a panel rate per capita is one of the highest in It said it took “far too long” to deal to tap new talent pool with EU base i US bargain-hunters fuel Europe M&A Europe has become the big target for cross-border Sweden’s strategy to protect elderly dealmakiTHEng, as US companies rid e aENTrump-fuelled D HOW DRIVERLESS equity market rally to hunt for bargains across the customs risks Atlantic.— PAGE 15; CHINA CURBS HIT DEALS, PAGE 17 TECHNOLOGY IS i Report outlines longer NHS waiting times A reporOFt on how the healt h servicTe canHEsurvive CHANGING AN more austerity has said patients will wait longer for made up primarily of academics and Europe, and significantly higher than with the shortcomings and listed a being swamped non-urgent operations and for A&E treatment while AMERICAN WAY OF LIFE some surgicaROADl procedures will be scrapped.— PAGE 4 Censors and sensitivity people from coronavirus was a failure i Emerging nations in record debt sales Warning: this article may be FT WEEKEND MAGAZINE Developing countries have sold record levels of upsetting — LIFE & ARTS 017 by Brexit surge government debt in the first quarter of this year, taking ad vantage of a surge in optimism toward emerging markets as trade booms.— PAGE 15 chaired by a former government lawyer those of its Nordic neighbours. number of tardy decisions, such as 3 ConfidenceinITplans‘has collapsed’ i London tower plans break records 4 2 FEBRUARY A survey has revealed that a Art of persuasion Mystery deepens and the government in Stockholm 3 Fivefold riseindeclarations expected record 455 tall buildings are How To Spend It planCned or unrderediconstruction t Suisse over disputed painting of Jane Austen AMES IT T T adjust its negotiation position with the in London. Work began on EU,aWhitehall official said. “If running almost one toweraweek 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 Tilenlerson faiguls to ease Tulfrkeyed tensions in makes uncomfortable reading for the In response, Stefan Lofven, prime problems with protective equipment; surgeinworkloadexpectedonceBritain pressforcertainoptionsinBrussels.” The US secretary of state has failed to reconcile leaves the EU, customs authorities have In a letter to Andrew Tyrie, chairman tensions after talks in Ankara with President Recep bears responsibility, according to pre- admittedtoMPs. of the Commons treasury select com- Tayyip Erdogan on issues including Syria and the Chic new lodgings HM Revenue&Customs told a parlia- mittee, HMRC said the timetable for extradition of cleric Fethullah Gulen.— PAGE 9 mentary inquiry that the new system delivering CDS was “challenging but fresh tax probe needed urgent action to be ready by achievable”. But, it added, CDS was “a i Toshiba investors doubt revival plan in Scotland March 2019, when Brexit is due to be complexprogramme”thatneededtobe In a stormy three-hour meeting, investors accused MAGAZINE completed, and the chair of the probe linked to dozens of other computer sys- managers oaving an entrenched secrecy culture said confidence it would be operational tems to work properly. In November, and3cast doubt on a revival plan after Westinghouse centre-left government in Stockholm. minister, admitted to newspaper Afton- the late introduction of testing; and a UK, France and Netherlands swoop intime“hascollapsed”. HMRC assigned a “green traffic light” to filed for Chapter 11 bankruptcy protection.— PAGE 16 Setting upadigital customs system CDS, indicating it would be deliveredon 3 BlowforbidtocleanupSwissimage liminary findings of an official inquiry 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 TheRAba nk ha ATsKIN unvS —ZUeiledaRICHrange of gender-neutritalfollowed “a strategy offull client tax increase in declarations expected at been relegated to “amber/red,” which titles Nsuc ANh as R “MxINS”,in N a—BRUSSdditionEL toS Mr, Mrs, Missco ormpliance” but was still trying to BritishportswhentheUKleavestheEU. means there are “major risks or issues Ms, in a move to embrace diversity and cater togathethe rinformationabouttheprobes. About 53 per cent of British imports apparentinanumbero£eyareas”. neeCdsre ofditrt aSuissnsgenedehasr custobeenmertargets.— PAGEed 20 by 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- Sweden has taken a different path bladet that Sweden had been harder hit ban on visitors to homes for the elderly single market and customs union. But and it will be able to support frictionless Dabacktawa Switzerlandtch ’s attempts to clean up dering by “a global financial institution TheresaMayannouncedinJanuarythat international trade once the UK leaves itsimageasataxhaven. and certain ofits employees”. The UK into the handling of the pandemic. 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 to make sure that each project gets the T rrorco-o tt c sperating inwit st rnh authoriti Europ es afteRecenr itts attacrkseac —h of this investigation sends a clear The lure of the exotic declarationsayearbut,onceoutsidethe focus and resource it requires for suc- officesinLondon,ParisandAmsterdnotablyam theme 2011ssage that there is no hiding place for customs union, the number is expected cessfuldelivery.” i h i htedwere conta attac cted by thers local officialmassacs28821,re bythoseseekingtoevadetax.” Coslada, Madrid. LegalRobin Lane Fox on Depositthe flair Number FINANCIAL toTIMEShit300m. HMRC’s letters to the select commit- “concerningclienttaxmatters”. Anders BreivikD inutch prosecutors, who initiated the of foreign flora — HOUSE & HOME The revelations about the system, tee, which will be published today, pro- AFP Dutch authorities said their counterNorway,- theaction, said they seized jewellery,paint- russe s attacks in Paris called Customs Declaration Service, are vide no explanation for the rating Lloyd’s of London chose Brus- insurers to follow. Most of the EU, with Dublin and Luxem- parts in Germany were also involved, ings and gold ingots as part of their from the rest of Europe on a number of by the second wave of Covid-19 than the that was introduced only on April 1, while Australia’s revenue departmenand Nicet , andprobe;the while French officials said their likely to throw a sharper spotlight on change, but some MPs believe it was sels over “five or six” other business written in Brussels bourgthoughttobemorelikely or ay Brussels suicide 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 saiditwasinve arisstigatingaSw iceissbank. investigation had revealed “several The inquiries threaten to underminbombieng(Depositos—thoushave and” bank accounts opened in Legal) M-32596-1995; host of regulatory regimes—in areas siontoleavetheEUcustomsunion. EU base to help deal with the syndicates at its City of London Mr Nelson said the city won on bucked the trend Bracken House, 1 Friday Street, London EC4M 9BT. efforts by the country’s banking sector Switzerland and not declared to French ranging from customs and immigration Tim t b r t R p i a e expected loss of passporting headquarters,picturedabove. its transport links, talent pool of generally low to agriculture and fisheries — by the Sc m to import E s a e rightsafterBrexit. The Belgian capital had not and “extremely good regula- tooverhaulbusinessmodelsandenfatsualitirees fromtaxauthorities. customers meet international tax The Swiss attorney-general’s office timeBritainleavestheEU. E itori omm nt Not boo a e John Nelson, chairman of the been seen as the first choice for toryreputation”. Sources a e s Terroris a d sur e cy e tre terror incidents in requirements following a US-led clamp- said it was “astonished at the way this ProblemswithCDSandotherprojects i ip St p ns ris i s a e centuries-old insurance mar- London’s specialist insurance a e western Europe down on evaders, which resulted in operation has been organised with the essentialtoBrexitcouldforceLondonto Mor n options a e ket, said he expected other groups after the UK leaves the Insur rs s t to o o a e Publishing Director, Roula Khalaf; billionsofdollarsinfines. deliberate exclusion of Switzerland”. It The country’s independent coronavirus issues, ranging from not implementing a country’s health officials had expected. weeks after the initial outbreak. The probes risk sparking an interna- demandedawritten explanation from tional dispute after the Swiss attorney- Dutchauthorities. 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- City watchdog sendsaclear message as actions co-ordinated by Eurojust, thePublishingranging conspiracy” to help clients Company, The EscapeTHEFinancial theRISE taper OF trap ECO-GLAM Times Limited, Subscriptions & Customer service EU’sjudicialliaisonbody. evadetax.Itagreedtofinesof$2.6bn. CreditSuisse,whosesharesfell1.2per AdditionalreportingbyLauraNoonanin How high earners can evade banker loses job over WhatsApp boast cent yesterday, identified itself as the Dublin, Caroline Binham and Vanessa subject ofinvestigations in the Nether- Houlder in London, and Michael Stothard a pension headache — FT MONEY commission, one of the first in Europe to formal lockdown or recommending the The Swedish commission blamed “It appears blameworthy that atten- lands,FranceandtheUK.Thebanksaid inParis Austen’s descendants insist the Rice portrait depicts her as a girl — see magazine Bridgeman Art Library
A RA N NAN registered office as above. Local Representative office; Berrysafterdiscussionswithregulators. media at work, but banks are unable to Subscription offers: www.ft.com/subscription ENNIFERT M S N Christopher Niehaus,aformer Jeffer- ban people from installing apps on their A boastful WhatsApp message has cost ies banker, passed confidential client privatephones. a London investment banker his job information to a “personal acquaint- Andrew Bodnar,abarrister at Matrix and a £37,000 fine in the first case of ance and a friend” using WhatsApp, Chambers,saidthecaseset“aprecedent Brussels takes tough stance on Brexit S ut o nris sbor r regulators cracking down on commu- accordingtotheFCA.Theregulatorsaid in that it shows the FCA sees these mes- C/ Infanta Maria Teresa390_Cover_PRESS.indd 4, 1 bajo 2, 28016, Madrid. ISSN19/01/2017 13:57 Contact: +44 207 775 6000, [email protected] over Facebook’s popular Mr Niehaus had turned over his device saging apps as the same as everything bi o s o r t top release publicly parts of its findings, said use of face masks, to keeping borders several factors, including shared tion was not drawn to the conditions in chatapp. tohisemployervoluntarily. else”. with Spain handed veto over Gibraltar o ressio a e ub ica s see i to The FCA said Mr Niehaus had shared Information shared by Mr Niehaus a erta S o er e t shutdo a ter The fine by the Financial Conduct confidentialinformationonthemessag- included the identity and details of a ri ha e resisted o a d Tru s Authority highlights the increasing ing system “on a number of occasions” client and information aboutarival of A E ARKER —BRUSSELS ambitioustradeandairlineaccessdeals. mise. If Britain wants to prolong its atte t to tac u ds to ay or a a problem new media pose for companies lastyearto“impress”people. Jefferies. In one instance the banker 1135-8262. E R E ARKER —LONDON Gibraltar yesterday hit back at the status within the single market after Manage your personal account:o the S e ico border o to that neemma.ft.comd to monitor and archive their Several banks have banned the use of boasted how he might be able to pay off STEFAN A ST — BERLIN clause, saying the territory had “shame- Brexit, the guidelines state it would sto a s e di a s They ear staff’scommunication. new media from work-issued devices, hismortgageifadealwassuccessful. TheEUyesterdaytookatoughopening fully been singled out for unfavourable require “existing regulatory, budgetary, that his a ed b i crease i Several large investment banks have but the situation has become trickier as Mr Niehaus was suspended from Jef- stance in Brexit negotiations, rejecting treatmentbythecouncilatthebehestof supervisory and enforcement instru- de e ce a d border s e di cou d banned employees from sending client banks move towards a “bring your own feries and resigned before the comple- Britain’s plea for early trade talks and Spain”. Madrid defended the draft mentsandstructurestoapply”. that well-known structural problems in open and not imposing quarantine on responsibility between national and residential care for consistently frail i in ris to pi orcea edera shutdo or the irst information over messaging services device” policy. Goldman Sachs has tionofadisciplinaryprocess. UAE:explicitly giving Spain a veto ovMasarer any clause,pointingoutthatitonlyr Printingeflected Mr Tusk wants talks on future trad e & Publishing, P.O. Box 485100, Advertising ti e si ce as e ocrats re use including WhatsApp, which uses an clamped down on its staff’s phone bills Jefferies declined to comment while pr ssur on c r s r ic s arrangementsthatapplytoGibraltar. “thetraditionalSpanishposition”. to begin only once “sufficient progress” to acce t the ro osa s 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 S bu t A n accessed without permission from the issuedBlackBerrys. forcomment. About 2.3m people will benefit from European Council president Donald Mr Tusk’s text left room for negotiators citizen rights, which Whitehall officials Trump tt c o r t bi i PAGE 8 user. Deutsche Bank last year banned Bankers at two institutions said staff AdditionalreportingbyChloeCornish today’s increase in the national living Tusk’s first draft of the guidelines, to work with in coming months. Prime believe means simultaneous talks are WhatsApp from work-issued Black- are typically trained in how to use new omb r a e wage to £7.50 per hour. But the rise which are an important milestone on minister Theresa May’s allies insisted possibleifcertainconditionsaremet. will pile pressure on English councils, Dubai.the road to Brexit, sought to damp Brit- Editorthat the EU negotiating stance was inBoris Johns Chief:on, the foreign secretary, Roula Khalaf. Tel: +44 20 7873 4000 [email protected], which will have to pay care workers a ain’s expectations by setting out a largely“constructive”,withonesayingit reassured European colleagues at a lot more. Some 43 per cent of care “phased approach” to the divorce proc- was “within the parameters of what we Nato summit in Brussels that Mrs May elderly care contributed to a high visitors from abroad. local governments for elderly care; older people earlier, seeing as it was Subscrib In print n on in or M r ts sta —amounting to 341,000 people ess that prioritises progress on with- were expecting, perhaps more on the had not intended to “threaten” the EU aged 25 and over — earn less than the drawalterms. upside”. when she linked security co-operation t co subscribe o ST K MARKETS RREN IES INTEREST RATES new living wage and the increase is The decision to add the clause giving BritishofficialsadmittedthattheEU’s afterBrexitwithatradedeal. Te expected to cost councils’ care services Spain the right to veto any EU-UK trade insistence on a continuing role for the R ports n sis page 3 Mar 30 prev %chg Mar 30 prev Mar 30 prev price yield chg France: Publishing Director, Jonathan Slade, 46 Rue La [email protected] £360m in the coming financial year. deals covering Gibraltar could make the European Court of Justice in any transi- on t n o Tim r or For t t st n s o to S&P 500 2365.93 2361.13 0.20 $ per € 1.074 1.075 € per $ 0.932 0.930 US Gov 10 yr 98.87 2.38 0.00 An sis i PAGE 4 300-yea r territorial dispute between tiondealcouldbeproblematic. M n in t N s i is page 11 . t.com Nasdaq Composite 5902.74 5897.55 0.09 $ per £ 1.249 1.241 £ per $ 0.801 0.806 UK Gov 10 yr 100.46 1.21 -0.03 Madrid and London an obstacle to Brussels sees little room for compro- nr M nc page 12 Dow Jones Ind 20703.38 20659.32 0.21 £ per € 0.859 0.866 € per £ 1.164 1.155 Ger Gov 10 yr 98.68 0.39 -0.01 © THE FINANCIAL TIMES LTD 2017 FTSEuro rst 300 1500.72 1493.75 0.47 ¥ per $ 111.295 111.035 ¥ per € 119.476 119.363 Jpn Gov 10 yr 100.45 0.06 0.00 No: 39,435 ★ Euro Stoxx 50 3481.67 3475.27 0.18 ¥ per £ 139.035 137.822 £ index 76.705 76.951 US Gov 30 yr 100.14 2.99 0.01 Boetie, 75008 Paris, Tel. +33 (0)1 5376 8256; Fax: +33 (01) number of deaths among pensioners. The commission underscored that insufficient staffing levels and poor known that the consequences of infec- Letters to the editor ri ted i o do i er oo as o ub i FTSE 100 7369.52 7373.72 -0.06 € index 89.046 89.372 $ index 104.636 103.930 Ger Gov 2 yr 102.58 -0.75 0.00 Subscrib In print n on in or M r ts Fra urt russe s i a adrid e or FTSE All-Share 4011.01 4011.80 -0.02 SFr per € 1.069 1.072 SFr per £ 1.244 1.238 price prev chg hica o Sa Fra cisco ashi to r a do MM ITIES www.ft.com/subscribenow CAC 40 5089.64 5069.04 0.41 Fed Funds E 0.66 0.66 0.00 ST K MARKETS RREN IES INTEREST RATES To yo o o Si a ore Seou ubai Xetra Dax 12256.43 12203.00 0.44 Mar 30 prev %chg US 3m Bills 0.78 0.78 0.00 Tel: 0800 298 4708 Mar 31 prev %chg Mar 31 prev Mar 31 prev price yield chg Nikkei 19063.22 19217.48 -0.80 Oil WTI $ 50.22 49.51 1.43 Euro Libor 3m -0.36 -0.36 0.00 For t t st n s o to S&P 500 2367.10 2368.06 -0.04 $ per € 1.070 1.074 € per $ 0.935 0.932 US Gov 10 yr 98.63 2.41 -0.01 Hang Seng 24301.09 24392.05 -0.37 Oil Brent $ 52.98 52.54 0.84 UK 3m 0.34 0.34 0.00 5376 8253; Commission Paritaire N° 0919 C 85347; ISSN Nasdaq Composite 5918.69 5914.34 0.07 $ per £ 1.251 1.249 £ per $ 0.800 0.801 UK Gov 10 yr 100.35 1.22 0.02 [email protected] FTSE All World $ 297.99 297.73 0.09 Gold $ 1248.80 1251.10 -0.18 Prices are latest for edition Data provided by Morningstar . t.com Dow Jones Ind 20689.64 20728.49 -0.19 £ per € 0.855 0.859 € per £ 1.169 1.164 Ger Gov 10 yr 99.27 0.33 -0.01 © THE FINANCIAL TIMES LTD 2017 FTSEuro rst 300 1503.03 1500.72 0.15 ¥ per $ 111.430 111.295 ¥ per € 119.180 119.476 Jpn Gov 10 yr 100.36 0.07 0.00 No: 39,436 ★ “These shortcomings have led to resi- Sweden had suffered a similar propor- working conditions; and the difficulty tion were particularly severe in this Euro Stoxx 50 3495.59 3481.58 0.40 ¥ per £ 139.338 139.035 £ index 77.226 76.705 US Gov 30 yr 99.27 3.04 0.01 Printed in London, Liverpool, Glasgow, Dublin, FTSE 100 7322.92 7369.52 -0.63 € index 88.767 89.046 $ index 104.536 104.636 Ger Gov 2 yr 102.57 -0.75 0.00 Frankfurt, Brussels, Milan, Madrid, New York, 1148-2753.FTSE All-Share 3990.00 4011.01 -0.52 SFr per € 1.071 1.069 SFr per £ 1.252 1.244 price prev chg Executive appointments Chicago, San Francisco, Washington DC, Orlando, CAC 40 5122.51 5089.64 0.65 MM ITIES Fed Funds E 0.66 0.66 0.00 Tokyo, Hong Kong, Singapore, Seoul,Dubai Xetra Dax 12312.87 12256.43 0.46 Mar 31 prev %chg US 3m Bills 0.78 0.78 0.00 Nikkei 18909.26 19063.22 -0.81 Oil WTI $ 50.46 50.35 0.22 Euro Libor 3m -0.36 -0.36 0.00 Hang Seng 24111.59 24301.09 -0.78 Oil Brent $ 53.35 53.13 0.41 UK 3m 0.34 0.34 0.00 Tel: +44 20 7873 4909 Turkey:FTSE All World $ 297.38 298.11 -0.24 Gold $ Dunya1244.85 1248.80 -0.32 Prices are latestSuper for edition Data provided by Morningstar Veb Ofset A.S. 100. Yil Mahallesi dential care being unprepared and ill- group,” it said. www.exec-appointments.com 34204, Bagcilar- Istanbul, Tel. +90 212 440 24 24. Sweden: Responsible Publisher - Christer Norlander equipped to handle a pandemic. Staff A nursing home The commission said 20 per cent of Published by: The Financial Times Limited, employed in the elderly care sector were in Stockholm. infected residents of care homes were Bracken House, 1 Friday Street, London EC4M 9BT. © Copyright The Financial Times 2020. Tel: +44 20 7873 3000; Fax: +44 20 7407 5700. Reproduction of the contents of this newspaper in any largely left by themselves to tackle the Some 20 per not seen by doctors at all, while 40 per Editor: Roula Khalaf. manner is not permitted without the publisher’s prior crisis . . . 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Tel. +39 039 28288201 so far, this part of the strategy has seen by doctors people had died unnecessarily. “The Owner, The Financial Times Limited; Rappresentante e Reprints are available of any FT article with your failed,” the commission said in the first at all, according ultimate responsibility is of course Direttore Responsabile in Italia: I.M.D.Srl-Marco Provasi - company logo or contact details inserted if required Via G. Puecher, 2 20037 Paderno Dugnano (MI), Italy. (minimum order 100 copies). part of its report, published yesterday. to a coronavirus borne by prime minister Stefan Lofven,” Milano n. 296 del 08/05/08 - Poste Italiane SpA-Sped. in One-off copyright licences for reproduction of FT articles “The ultimate responsibility for these commission he wrote on Twitter. Abb.Post.DL. 353/2003 (conv. L. 27/02/2004-n.46) art. 1 are also available. .comma 1, DCB Milano. For both services phone +44 20 7873 4816, or email shortcomings rests with the govern- Anna Ringstrom/Reuters The commission is due to release its Spain: Bermont Impresion, Avenida de Alemania 12, CTC, [email protected] ment in power — and with the previous final report in October 2021.
DECEMBER 16 2020 Section:World Time: 15/12/2020 - 18:12 User: sanjay.gohil Page Name: WORLD1 USA, Part,Page,Edition: EUR, 2, 1 Wednesday 16 December 2020 ★ FINANCIAL TIMES 3
INTERNATIONAL
Economic recovery Missile sanctions amount to China powers ahead with rosy figures for industry and retail
US shot across Turkey’s bow Thomas Hale — Hong Kong up 2.6 per cent over the year to date, while in November the unemployment China’s economic recovery from the rate edged down to 5.2 per cent — the coronavirus crisis powered ahead in same level it was in December last year. November as key indicators of activity Measure viewed as mild but points to deep strain between two Nato allies Ting Lu, chief China economist at rose at their fastest rates this year. Nomura, warned that the strong read- Industrial production jumped 7 per cent ings in November and momentum in to Laura Pitel — Ankara year on year in November, edging up December added some “upside risk” to Katrina Manson — Washington from 6.9 per cent a month earlier, while the bank’s forecast for 5.7 per cent real After years of fretting that Turkey retail sales rose 5 per cent. Both metrics gross domestic product growth in the would face crippling economic meas- grew more than in any other in 2020. fourth quarter. ures for its decision to buy a Russian- China’s economy returned to growth Oxford Economics upgraded its made air defence system, foreign inves- in the second quarter after a historic forecast for China’s full-year growth to tors reacted with relief to the US’s rela- decline at the start of the year. The 2.1 per cent and expects growth of tively restrained sanctions this week. recovery has been stoked by the coun- 8.1 per cent next year. Louis Kuijs, head “The sanctions are very mild,” said try’s industrial sector and strong export of Asia economics at the consultancy, Gilles Seurat, a fund manager at La growth while other big economies have expected a tightening of policy to weigh Française, a Paris-based asset manager. foundered. on quarter-on-quarter growth next Investors could “at last put this S-400 The comeback has allowed China to year. “We expect the macro policy issue behind us with no economic cost play a more dominant role in global stance to shift from expansionary to for the country”. trade, which also gathered pace last contractionary, with the overall govern- Nevertheless, the decision to impose month. Exports rose 21.1 per cent in dol- ment deficit declining and monetary measures on a Nato ally underlines the lar terms in November, the biggest rise policymakers aiming to contain macro deep strain between Turkey and its since February 2018, pushing the trade leverage,” he said. western partners — and serves as a surplus to its highest level on record. Leverage has emerged as a concern reminder of the thorny foreign policy Retail sales growth was buoyed in for policymakers in China, with the gov- challenge awaiting Joe Biden when he November by “Singles’ Day”, the world’s ernment in August seeking to control takes office in the US next month. biggest shopping festival. Gains in borrowing in the property sector as “The Biden administration will still spending came despite concerns that house prices rose sharply. have to deal with the S-400 crisis,” said consumption was lagging behind a Over recent weeks, China’s credit Asli Aydintasbas, a senior policy fellow wider recovery in China. The figure market has also been rocked by at the European Council on Foreign remains down 4.8 per cent in the first 11 defaults. New home prices in November Relations. “It’s a fairly significant thing months of the year compared with the rose 0.1 per cent compared with a for a Nato country to be sanctioned by same period in 2019. month earlier, but were up 4 per cent the US. Getting to a place where the Fixed asset investment, meanwhile, is year on year, official data showed. S-400s are no longer an issue between Turkey and the US will be tough.” Even if the immediate financial impact of the sanctions was limited, Australia with the embattled Turkish lira enjoy- ing a calm day of trading yesterday, the measures risk striking a blow to the Beijing coal ban would breach defence sector that Recep Tayyip Erdogan, Turkey’s president, has taken great pride in expanding. WTO rules, warns Canberra Turkey now produces armoured vehi- cles, tanks, helicopters and drones but they require foreign parts. Defence ana- Jamie Smyth — Sydney foreign policy. A memo leaked to Aus- lysts warn that western companies may tralian media last month by a Chinese Canberra has asked Beijing to clarify be hesitant to work with Turkish groups diplomat cited Canberra’s ban on Hua- whether it has formally banned Aus- for fear of falling foul of US sanctions. wei from the country’s 5G network and tralian coal, warning that such a move “While the Turkish defence industry “disinformation” about China’s han- would breach World Trade Organiza- isn’t going to collapse, it will be incon- dling of coronavirus as among the rea- tion rules and harm both countries. venienced,” said Aaron Stein, a Turkey sons for the deterioration in relations. expert at the Foreign Policy Research Scott Morrison, Australia’s prime minis- China has imposed sanctions on bar- Institute in Philadelphia. “It will cause ter, said yesterday he was seeking expla- ley, beef and wine following Canberra’s some pain.” That meant that Turkey — nations about Chinese state media call for an inquiry into the origins of the already suspended from the US-led F-35 reports that the country’s economic pandemic in Wuhan. fighter jet programme for the S-400 Happier times: spending measure passed by Congress argue poses a security threat to Nato advisory body decided at the weekend Mr Morrison said there was no pros- purchase — was likely to be eager to “get Donald Trump last week with a veto-proof majority but Sanctions technology, but Mr Stein warned: “If the to allow power stations to import coal these sanctions lifted”, he said. hosted Recep which has yet to be signed into law — are Turks are going to be intransigent and without clearance restrictions, with the There are signs that Turkey is open to Tayyip Erdogan stipulates that S-400 sanctions can be unwilling to compromise then even peo- exception of Australia. Loading up: ‘designed imported coal is talks. Mr Erdogan, who has often used at the White lifted only if Turkey “no longer pos- ple who want to lift [these measures] The development follows Beijing’s transferred from harsh language with the US, has toned House a year ago sesses” the system. to push the are going to have problems.” imposition of informal trade sanctions, a cargo vessel down his rhetoric following Mr Biden’s for trade talks. “That’s never going to happen,” said There are other obstacles. The two which have left dozens of cargo ships at Rizhao in presidential election victory and ahead Below, a truck Mr Stein. “So the Biden administration Turks, but nations remain at odds over Syria, carrying Australian coal stranded off eastern China of possible sanctions from Europe. Last with S-400 is going to have to make the case for not trash where Washington supports Kurdish the Chinese coast and unable to unload week he stressed Turkey’s “deep-rooted missile system Turkey. Turkey is going to have to do fighters that Turkey views as a national shipments, in some cases for months. pect that he would change policy to political and economic relations with parts arrives something.” things’ security threat. “It would be a bad outcome for the meet Chinese demands, which would the US and the EU”, adding: “There is no in Turkey Turkey could commit never to use the Mr Biden, who told the New York trading relationship between Australia impinge on Australian sovereignty. issue that cannot be solved through dia- Alex Edelman/Bloomberg; AP Russian system, which US officials Times in 2019 that Mr Erdogan was an and China, that both countries benefit The threat to Australian coal targets a logue and co-operation.” “autocrat”, has vowed to prioritise from,” Mr Morrison said of the reports commodity that generated A$55bn in Yet it remains unclear whether he is human rights, putting him on a collision in the Global Times, the Chinese nation- export earnings in 2019. Australian willing to make the compromises that course with a Turkish leader harsh with alist tabloid. “If that were the case, that thermal coal exports fell 14 per cent will be demanded of him in return for domestic political opponents. would obviously be in breach of WTO year on year in the third quarter with the lifting of sanctions and a normalisa- Still, advocates of rebuilding the rela- rules. It would obviously be in breach of shipments to China dropping more than tion of US-Turkey ties. tionship argue there is much to be our free trade agreement . . . It really is 50 per cent, according to Fitch. Ship- Daniel Fried, a former senior state gained, not least pulling Turkey away lose-lose here.” ments to India rose 96 per cent over the department official who covered Tur- from Russia’s orbit. China is Australia’s largest trade part- same period, “suggesting some of the key, said the Biden administration Many analysts believe Mr Erdogan ner, with trade totalling A$252bn cargoes heading to China were redi- needed to craft a “reset” with Turkey. will enter the Biden era in search of bet- ($190bn) in 2019. But over the past two rected”, the agency said. “[But] Erdogan’s got to want to do this,” ter relations. However, Soner Cagaptay, years, relations have soured as Canberra Additional reporting by Thomas Hale in he said, adding that the sanctions were a senior fellow at the Washington Insti- has resisted Beijing’s more aggressive Hong Kong “designed to push the Turks, but not tute for Near East Policy, warned that trash things”. any optimism might not last. “If the past A clause in this year’s National offers any lessons, I think it will start Defense Authorization Act, a defence well but it won’t end well.” Law changes Hungary limits gay rights and South-east Asia. Democracy movement restricts opposition parties Thai students fail to sway state’s stance on monarchy Valerie Hopkins — Budapest ther restrict democracy in Hungary. One limits the definition of “public Hungary’s parliament has approved Despite opening a space for protest, governing decisions while in Germany. tee” proposed by the military-domi- funds” in a way that undermines over- laws limiting the rights of gay couples, Protesters have broken taboos however, analysts said the students had Nine senators in the US, Thailand’s nated parliament to gather pro-monar- sight, according to the Hungarian Hel- changing electoral rules and decreas- failed to budge the military-backed roy- main military ally, introduced a resolu- chy and pro-protest representatives, sinki Committee, a Budapest-based but struggled to get military ing oversight of public funds. alist establishment on their three core tion this month supporting the democ- dismissing it as a delaying tactic. human rights organisation. government to change course demands: the resignation of Prayuth racy movement and urging the govern- As protests massed outside parlia- The package passed yesterday included The package also includes a law that Chan-ocha, the prime minister; a new ment to “care for the rights and wellbe- ment last month, MPs agreed to con- an anti-LGBT constitutional amend- doubles the number of constituencies in John Reed — Bangkok constitution; and reforms to the monar- ing of children and students”. vene a committee to redraft the consti- ment stipulating that “the mother [of a which parties must field candidates to chy. The protesters have also struggled Kanokrat Lertchoosakul, assistant tution. But they rejected a motion child] is a female, the father is a male”. compete nationally, making it more dif- “Long live the Queen!” people cried, as to attract broader support from rural professor of political science at Chu- backed by the protesters and the oppo- It also states that only married cou- ficult for them to challenge Fidesz. The Parit Chiwarak, a leader of Thailand’s and working-class Thais, but some older lalongkorn University, said the protest- sition Move Forward party that would ples can adopt children, in effect exclud- government said the new law would pre- student-led protests, took the stage in a allies have been won over to their cause. have put the entire charter, including an ing homosexuals because gay marriage vent “fake parties” from competing. bouffant wig and pink gown similar to Thais used to quail at the thought of article guaranteeing the king’s privi- is not allowed. Opposition parties had vowed those of the country’s Queen Suthida. criticising the monarchy even obliquely. ‘[Students] haven’t been leged legal status, up for discussion. The laws are the latest in a series unprecedented co-operation in the Mr Parit, known as Penguin, deployed Now, everything — including the king’s successful in compelling The king described the country as a promoting so-called Christian family 2022 general election in the hope of the camp attire for a skit at a recent power, his multibillion-dollar fortune, “land of compromise” in impromptu values promulgated by Viktor Orban’s stripping Fidesz of its supermajority. A demonstration. But Thailand’s youth share of the state budget and residence the government to the comments to Britain’s Channel 4 news socially conservative government. recent poll put their combined popular- protesters were making a serious in Germany — can be discussed openly. negotiating table’ last month. However, the Prayuth gov- Mr Orban’s coalition enjoys a super- ity 4 percentage points ahead of the rul- demand: the scrapping of Article 112 of Thai Rath, the country’s top-selling ernment has begun taking a harder line majority in parliament. It is the ninth ing party and its coalition partner. the criminal code, the lèse majesté law tabloid newspaper, recently published a ers’ “first point of success” had been to prosecuting protest leaders, setting the time the constitution has been amended The amendments came as the EU’s used to threaten or jail critics of King front-page story about the protesters’ broaden the scope of debate. “The stu- stage for further conflict in 2021. since it was rewritten in 2011 by the pre- biggest political group, the European Maha Vajiralongkorn and his family. demands to abolish Article 112, high- dents have proved that Thai society was After suspending lèse majesté prosecu- mier’s allies. Earlier this year, parlia- People’s party, debated the potential Panusaya Sithijirawattanakul, known lighting the extent to which the for- ready to discuss this issue; they just tions on the king’s orders in 2017, ment made it legally impossible for expulsion of Tamas Deutsch, the Fidesz as Rung, another protest leader, read merly self-censoring media now feels needed someone to open the door.” authorities are now wielding the feared Hungarians to change their gender. party caucus leader who became caucus out the names of Thais charged under free to broach once off-limits topics. Mark Cogan, associate professor of law more widely. Police have sum- Yesterday’s vote came just after chairman after ex-MEP Jozsef Szajer the law, which carries a maximum 15- The democracy movement has also peace and conflict studies at Japan’s moned at least 41, including Mr Parit Mr Orban withdrew his threat to veto was caught at a Brussels gay sex party. year prison term. employed subversive humour, viral Kansai Gaidai University, agreed that and Ms Panusaya, for lèse majesté inves- the EU’s €1.8tn budget and recovery Mr Szajer wrote much of the country’s Such scenes would have been unimag- memes and visual puns, donning dino- the students had made it possible to dis- tigations, according to Human Rights package, over objections to tying funds anti-LGBT constitution. inable six months ago. But Thailand’s saur costumes at one point in reference cuss once-forbidden topics, but added: Watch. to rule-of-law benchmarks. Critics say Mr Deutsch is under fire for saying young protesters have sparked an to Thailand’s gerontocratic leadership — “They haven’t been successful at all in “The king said this is the land of com- Mr Orban’s government and far-right group leader Manfred Weber used tac- unprecedented political debate with to advance their causes. compelling the government to the nego- promise, but this is not a land of com- Fidesz party have run roughshod over tics reminiscent of Nazi and commu- dozens of demonstrations in Bangkok The movement has gained interna- tiating table.” promise,” said Ms Kanokrat. “With an the rule of law and European values. nist-era secret police in recent debates and elsewhere since July that have tional attention; Berlin has said it will Protesters and opposition parties uncompromising, strong state, what Watchdogs warn that two other over tying EU funds to rule of law bench- drawn tens of thousands of people. oppose Thailand’s head of state making have rejected a “reconciliation commit- can we expect in the near future?” changes to the constitution could fur- marks. Mr Deutsch has apologised.
DECEMBER 16 2020 Section:World Time: 15/12/2020 - 18:39 User: sanjay.gohil Page Name: WORLD2 USA, Part,Page,Edition: USA, 3, 1 4 ★ FINANCIAL TIMES Wednesday 16 December 2020
INTERNATIONAL
Electoral College Bipartisan push Support for McConnell congratulates Biden on victory reduced US High-ranking Republican result but our system of government has of electors equal to a state’s total con- administration if Democrats are unable lenges that the world is encountering stimulus processes to determine who will be gressional delegation, which is in turn to win two Senate run-offs in Georgia now, despite their differences”. acknowledges result but sworn in on January 20,” added the sen- determined by the census. next month, which would allow the “For my part I am prepared for inter- Trump has yet to concede ator from Kentucky. Mr Trump has not directly com- party to reclaim control of the upper action and contact with you,” the Krem- package Since Mr Trump’s defeat on Novem- mented on the college vote. However, chamber of Congress. lin quoted Mr Putin as writing. ber 3, many Republican lawmakers Mr Biden has insisted he will work Mr López Obrador praised Mr Biden’s Lauren Fedor — Washington grows have hesitated to contradict the presi- across the political aisle to strike com- more liberal stance on immigration and Mitch McConnell, the Senate’s top dent, who has claimed, without evi- ‘[The US] has officially promises, and said he had spoken to a said he hoped they could speak soon. Republican, has congratulated Joe dence, that the vote was rife with fraud. a president-elect and a number of former Republican col- “We are certain that with you as US James Politi — Washington Biden on winning the US presidential But late on Monday, senior Republi- leagues in the Senate. president, it will be possible to continue US congressional leaders are facing election, making him the highest-rank- cans, including Lindsey Graham of vice-president elect’ The college vote also prompted con- applying the basic foreign policy princi- increasing pressure to agree compro- ing Republican yet to break with Donald South Carolina, John Cornyn of Texas Mitch McConnell gratulations for Mr Biden from world ples enshrined in our constitution, espe- mise fiscal stimulus legislation, as sup- Trump, who has refused to concede. and Chuck Grassley of Iowa, acknowl- leaders who had waited for the result, cially non-intervention.” port grows for a slimmed-down $748bn Mr McConnell, the Republican major- edged that Mr Biden was the president- yesterday he retweeted messages call- including Vladimir Putin of Russia and Mexico is considering two bills that package championed by a bipartisan ity leader in the Senate, said yesterday elect after he officially received 306 ing into question the election result. Mexico’s Andrés Manuel López Obra- critics say could complicate co-opera- group of senators. that the US “has officially a president- electoral votes, to Mr Trump’s 232. Mr McConnell yesterday described dor. The Kremlin said yesterday a tele- tion with the US on security and finance. elect and a vice-president elect” after Under the US constitution, the presi- Mr Biden, a senator who was Barack gram had been sent wishing Mr Biden Additional reporting by Jude Webber in The proposal, which includes aid to the Electoral College vote on Monday. dent and vice-president are selected not Obama’s vice-president, as “no stranger “the utmost success” and hoping that Mexico City and Max Seddon in Moscow small businesses and funding for unem- “Many of us hoped that the presiden- by the popular vote but by the Electoral to the Senate”. The Republican could yet Moscow and Washington could “really Prosecuting a president see FT Big Read ployment benefits, represents a last tial election would yield a different College. The system allocates a number be a thorn in the side of the Biden help to solve many problems and chal- Edward Luce see Opinion chance before the holiday recess for an agreement on government support as the US struggles with surging coronavi- rus infections. To make it more palatable to both parties on Capitol Hill, the moderate Fed meeting Policymakers ponder extra monetary support lawmakers stripped out contested pro- visions regarding liability protections for businesses and assistance for states and local governments, lowering the James Politi — Washington price tag of the package from $908bn. Colby Smith — New York The revised plan yesterday gained the The Federal Open Market Committee backing of the Center for American meets this week at an important junc- Progress, a centre-left think-tank that is ture for the US economy. While the out- influential within the Democratic party, look for 2021 has improved because of which called it “an important first step the rollout of the coronavirus vaccine, on the road to recovery”. the short-term picture has deteriorated “While CAP has repeatedly called for since monetary policymakers last met a larger, more comprehensive relief bill due to the worsening pandemic. . . . we believe that the urgency of the This has created a dilemma for Jay situation calls for immediate action to Powell, the Fed chair, and other officials. avert what could become a humanitar- They have consistently said they are ian and economic disaster and imperil prepared to provide the recovery with distribution of the vaccine,” said Wendy more monetary support, including by Stachelberg, executive vice-president. bolstering their asset purchases, if Neera Tanden, the group’s president, needed. But is now the moment? has been tapped to be the next White As they meet for the last time in a House budget director by Joe Biden, tumultuous year, and for their final president-elect, who has also been gathering before Joe Biden takes office pushing Congress to reach a deal. as US president, here are four things to On Monday, Dick Durbin, the Illinois watch. Democrat and Senate minority whip, backed the agreement, suggesting that More punch on bond purchases the party’s leadership, which had held Since June, in the early months of the out for relief measures of more than pandemic, the Fed has been buying $2tn, was willing to accept a far smaller $120bn of US government debt each number. “This package does not include month — $80bn across Treasuries of all everything I think we need. But it is an maturities and $40bn of agency mort- honest compromise,” he said. gage-backed securities — and has said it “We must provide some emergency would maintain that policy “over the relief for the American people before we coming months”. Today, it is expected to Officials publish new forecasts today rate rises than they did in September, Dovish stance: governments are reimposing lockdown go home for the holidays,” he added, make one big change in that regard, and good news on vaccines may well when the median prediction was for no Jay Powell, in measures that are bound to chill eco- calling on Mitch McConnell, the Repub- extending the timeframe for those debt lead to a rosier overall economic assess- lift-off until at least the end of 2023. Congress this nomic activity. lican Senate majority leader, to call a purchases by linking them to certain ment — even though the first quarter of This could be tricky for Mr Powell to month, does not Investors are holding out hope that vote on the bill this week. economic metrics in the recovery. next year will probably be more dire manage from a communications stand- want to create these facilities will be reinstated early In a speech in the Senate on Monday, But there has been pressure from than expected because of the worsening point, since he has often maintained a any perception next year after Mr Mnuchin hands the Mr McConnell seemed willing to some investors and economists to do pandemic, since a number of labour very dovish stance, stressing the down- that the Fed sees reins as Treasury secretary to Janet embrace the plan. more. Against the backdrop of rising market indicators have weakened side risks to the outlook, and does not the end of the Yellen, the former Fed chair, so any sig- “Either 100 senators will be here Treasury yields and a flood of new long- sharply recently. want to create any perception that the crisis and is nals on this from Mr Powell will be shaking our heads, slinging blame and er-dated debt issuance by the Treasury If the Fed does see solid macroeco- Fed sees the end of the crisis and is pre- preparing to closely watched. offering excuses about why we still have department, the Fed may shift the bulk nomic improvement next year, it may paring to tighten. raise rates not been able to make a law . . . [or] we Nudging Congress on stimulus of its bond-buying to longer maturities. lead officials to predict earlier interest Jim Lo Scalzo/EPA-EFE will break for the holidays having sent Should the Fed hold off on making Reviving the crisis credit facilities Mr Powell is probably tired of harangu- another huge dose of relief out the door this change, some fear that borrowing This week’s meeting is the first since a ing lawmakers on Capitol Hill for more for the people who need it,” he said. “So costs could begin to creep up for Ameri- Fed balance sheet hovers near all-time highs rift emerged between the central bank fiscal stimulus, especially since his let’s get this done.” can companies at a time when the eco- tn and the Treasury department over the efforts have been in vain so far. But this But opposition to the compromise nomic recovery has begun to falter. Oth- fate of emergency lending facilities week’s meeting will be his best chance to threatens to derail the bill. Some Repub- ers point to the fact that financial condi- announced this year. make the case for why only government licans believe the cost is still too high, tions remain extremely accommodative Fed unveils Steven Mnuchin, Treasury secretary, spending can plug the holes in the recov- while Bernie Sanders, the Vermont sen- extra tn to argue that a shift is unnecessary. in loans has asked the Fed to return unused ery that are growing by the day, includ- ator who challenged Joe Biden for the A more extreme, but less likely, funds from five such programmes that ing aid to small business, state and local Democratic presidential nomination, option would be for the Fed to increase are set to expire at the end of the month, governments and the unemployed. said any deal must include direct stimu- the aggregate size of its asset purchases. including two set up to purchase corpo- Pressure from Mr Powell may help lus cheques to those struggling. rate debt, five facilities to support small lawmakers close in on a package worth Josh Hawley, a Republican senator Vaccines and rate rises Fed announces unlimited asset purchases and medium-sized businesses and one somewhere between $748bn and from Missouri, agreed. “I don’t get why The last forecast from the Fed in Sep- that lends to state and local govern- $908bn but an additional question for so-called ‘emergency relief’ packages tember suggested the US economy ments. the central bank chief is whether for #COVID19 don’t include direct would contract by 3.7 per cent in 2020, Mr Powell has repeatedly signalled his he thinks the economy will need assistance to working families. Working followed by a 4 per cent rebound next Jan Dec preference to keep these facilities far more in the new year, as Mr Biden is people waiting in food lines & unable to year and the unemployment rate drop- active, especially in light of the fact that calling for. make rent is not an emergency?” he Source: Federal Reserve ping to 5.5 per cent by the end of 2021. coronavirus case counts are surging and See Markets Insight wrote on Twitter yesterday.
Low-carbon transition Eurozone US central bank joins alliance to back Paris climate goals ECB gives green light for
Martin Arnold — Frankfurt deepening our discussions with potential action identified by most of completed next year. Environmental banks to restart dividends our NGFS colleagues from around the respondents was “the risk of creat- campaigners have accused the ECB of The US Federal Reserve has joined a the world,” Jay Powell, the Fed chair, ing financial distortions”. reinforcing the market’s bias in favour consortium of central bankers sup- said. Clemens Fuest, head of the Ifo Insti- of heavy carbon-emitters, such as oil Martin Arnold — Frankfurt adverse developments”, it will return to porting the Paris climate goals as it According to the survey, only a small tute in Munich, said it would be “very and gas companies, utilities and air- its normal supervisory assessment of becomes more outspoken on the risk Banks in the eurozone will be able to minority of central banks have dis- bad economic policy to use this as the lines, because these sectors issue more banks’ capital and dividend plans. climate change poses to the global pay modest dividends to shareholders cussed implementing operational basis for steering capital flows in an bonds than most others. The move leaves eurozone banks economy. again from the start of next year under changes to tackle climate change, economy”, adding that it would be tan- Ms Lagarde has said central bankers more constrained on dividend pay- strict limits outlined by Europe’s finan- The Network for Greening the Financial despite warning of the impact it will tamount to “a centrally planned econ- should “ask themselves” if they are ments than their UK rivals after the cial regulator yesterday. System, which published yesterday a have on economies. omy”. taking “excessive risk” by trusting Bank of England last week said it would survey of its members’ plans for con- The question of whether central Most of the central banks surveyed by investors to price environmental The European Central Bank’s supervi- allow the strongest banks to pay divi- fronting climate change, said the Fed banks should use their vast bond-buy- the NGFS said there needed to be better issues. She said the ECB would consider sory board recommended that banks dends of up to a quarter of the past two was one of eight new members to join ing programmes to fight climate change disclosure of climate risks by commer- ditching the “market neutrality” distribute up to 15 per cent of their past years’ profits, or 0.2 per cent of risk- the group this month. by selling the bonds of the heaviest car- cial lenders and bond issuers as well as principle that means it always buys two years of profits to shareholders and weighted assets. “As we develop our understanding bon emitters and buying more green more international co-ordination bonds in proportion to the overall no higher than 0.2 per cent of their com- The ECB ordered eurozone banks to of how best to assess the impact of cli- bonds is one of the most contentious before they could take action in this market. mon equity tier one capital. stop all dividends and share buybacks to mate change on the financial system, areas of monetary policy. area. However, this was rejected by Jens Banks should only restart dividend conserve €30bn of capital in March, we look forward to continuing and Only seven respondents to the NGFS “The vast majority of central banks Weidmann, head of Germany’s central payments if they are profitable and have shortly after the pandemic arrived in survey said they were “not currently participating in our survey see scope for bank and a member of the ECB govern- “robust capital trajectories” that can Europe. Since then, the sector has lob- considering taking climate-related adjusting their operational frameworks ing council, who wrote in the Financial withstand the impact of the coronavirus bied hard for stronger banks to be measures”. Most of those considering to reflect climate-related risks,” said Times last month that “it is not up to us pandemic, the central bank said. allowed to resume payouts early next action said it was aimed at “mitigation Sabine Mauderer, a Bundesbank execu- to correct market distortions and politi- The ECB, which oversees the 113 big- year. of financial risks stemming from expo- tive who oversaw the NGFS survey. cal actions or omissions”. gest lenders in the eurozone, also reiter- Some officials have argued that the sures to climate-related risks on their “Though central banks are clearly sensi- Mr Weidmann added that the ECB ated its guidance for bank bosses to sector should continue to conserve capi- balance sheets”. tive to climate risks, the implementa- “should consider only purchasing secu- exercise “extreme moderation” on tal ahead of a potential surge in defaults But when asked if they had consid- tion of specific measures is still at an rities or accepting them as collateral for bonus payments by scrapping, defer- that is likely when governments wind ered implementing measures to protect early stage.” monetary policy purposes if their issu- ring or converting into shares as many down their loan guarantees and other themselves from climate risk or to Christine Lagarde, the European Cen- ers meet certain climate-related report- of their payouts as possible. policies to shield the economy from the proactively support the transition to a tral Bank president, has promised to ing obligations”, as well as only using The new guidelines will last until the pandemic. The ECB has warned that in a low-carbon economy, more than half make tackling climate change a key part credit ratings that incorporate climate end of September 2021, the ECB said, at severe scenario, eurozone banks could said they had not. The main obstacle to of its strategy review, which is due to be risks. which point, barring “materially be hit by €1.4tn of bad loans.
DECEMBER 16 2020 Section:World Time: 15/12/2020 - 18:51 User: sanjay.gohil Page Name: WORLD3 USA, Part,Page,Edition: USA, 4, 1 Wednesday 16 December 2020 ★ FINANCIAL TIMES 5
Mohamed El-Erian Central banks’ distortion of markets will be harder to defend in a recovering economy y MARKETS INSIGHT
Wing and a prayer Airlines fear big fines for Credit Suisse Buyout activity breaking EU data rules without Brexit deal tightens focus on wealth at risk after US management
Owen Walker and Oliver Ralph court ruling on London Thomas Gottstein, Credit Suisse chief executive, has put managing the for- tunes of the world’s wealthiest at the heart of the bank’s strategy as he tries ‘reckless’ board to draw a line under a testing first 10 months in the job. The Swiss bank said yesterday that it planned to increase profits from its wealth management business by at least 3 Nine West creditors cleared to sue a quarter by 2023 through initiatives that would cost up to SFr150m ($169m). 3 Chain failed after leveraged deal In a strategy update to investors, Mr Gottstein, who took the job in February following the messy exit of his predeces- Sujeet Indap — New York “Even a trial and ‘vindication on the sor, Tidjane Thiam, outlined his main facts’ will still leave this preliminary rul- areas of focus for the next three years. Deal lawyers in the US are warning that ing out there stating that a board acts Alongside wealth management, they leveraged buyouts could become much ‘recklessly’ by failing to adequately include building up the trading and more difficult to do after a court said assess an LBO-buyer’s post-transaction investment banking business and creditors could go after a company’s solvency,” he said. achieving a return on tangible equity of former directors if a private equity Ropes & Gray found the ruling so con- 10 to 12 per cent. buyer saddled the business with an sequential that it put out a bulletin to Next year “is the new era for Credit unsustainable amount of debt. clients last week. The ruling’s “direction Suisse where we want to go into offense A recent ruling — in the case of the to corporate decision makers is seem- and we want to grow”, Mr Gottstein told bankruptcy of retailer Nine West — by ingly at odds with their concurrent duty the Financial Times. “This has to be all Judge Jed Rakoff of the Southern District to maximise value for corporate stake- done with discipline across risk, compli- of New York said creditors could pursue holders — typically satisfied by obtain- ance and cost.” misconduct charges against the ing the highest possible price from a The 56-year-old has had a gruelling previous board of directors, which putative buyer”, the law firm wrote. introduction, taking over just as the approved a $2bn leveraged buyout to The Nine West bankruptcy has been pandemic gathered pace. Several of the Sycamore Partners in 2014. The busi- contentious, with its private equity fires he has been forced to fight relate to owner facing accusations of asset-strip- the period before he became chief, nota- ‘Requiring boards to be ping. As part of the 2014 buyout, it sold bly the corporate spying debacle that two of the company’s top brands, Stuart Unhappy landing: carriers face a dilemma on handling passenger data if talks on a trade deal fail — Tolga Akmen/AFP/Getty led to the departure of Mr Thiam. liable for the results years Weitzman and Kurt Geiger, to a Syca- At the height of the pandemic in the more affiliate in a side deal at what cred- Philip Georgiadis Airlines say the transfer of data to the statement, the Home Office said it spring, Credit Suisse was caught up in after a sale . . . could itors later argued was too low a price, UK will no longer conform to Europe’s had a “well-rehearsed plan” in place. scandals at Luckin Coffee and Wirecard, Airlines are warning they face large leaving the remaining Nine West brands General Data Protection Regulations “Provision of passenger lists of the having worked on deals for both. It also be a game-stopper’ fines for breaking strict European unable to shoulder the LBO debt. for personal data unless a legal names of passengers and the details of launched an internal review over its rules on the exchange of passenger ness went bankrupt four years later. Junior creditors argued the Nine West arrangement can be reached. their travel documents is unaffected supply chain finance funds linked to data for flights to the UK from next The board had been “reckless” in fail- board had been told by investment This means airlines could be fined by the ending of the transition period. SoftBank and Greensill Capital. month should trade talks with the ing to assess how the LBO debt could bankers that the company could only under the EU’s GDPR data privacy UK border control and law enforce- With Swiss regulators giving banks EU collapse. leave the new company insolvent, the withstand a debt to cash flow ratio of 5.1 provisions if they pass on the passen- ment agencies will continue to know permission to resume dividends, Credit judge wrote in the December 4 ruling. times, but the Sycamore LBO they Their concerns centre on the ger information. European Commis- who’s expected to be on planes Suisse said yesterday it would increase “Requiring boards to be liable for the approved raised leverage to 7.8 times. omission of how passenger data sion fines can rise as high as €20m, or intending to fly to or from the UK,” the its dividend by 5 per cent per year and results years after a sale would put The board argued that it had not should be handled in EU contingency 4 per cent of a company’s turnover. Home Office said. restart a SFr1.5bn share buyback plan. board members in a position of conflict opined on the propriety of the side deal plans to keep planes flying in the Airlines could face fines of up to Grant Shapps, the UK transport sec- Its investment bank had performed between what is best for shareholders in and LBO financing. The court, however, event of a no-deal Brexit, according to £10,000 per flight for refusing to hand retary, has said that Britain will recip- well in the fourth quarter, it said, with the short run versus what is best for said all components of the transaction two people familiar with the matter. over data to UK authorities. rocate EU emergency plans to ensure revenues expected to be higher than in directors over the next few years follow- should have been considered. Airlines are in talks with the UK The UK Home Office had reassured road and rail connectivity can con- the same period a year earlier. ing a transaction,” said Brian Quinn, a Since the board had been “reckless” government on personal data trans- airlines it was looking at a worka- tinue after December 31. Airlines Mr Gottstein also insisted asset man- corporate law professor at Boston Col- in not investigating Nine West’s sol- fers when the UK’s EU transition round to help them find a way to com- would be able to fly their normal agement was still a priority, adding that lege. “It could be a game-stopper for the vency, it “cannot take cover behind the period runs out at the end of this ply with data rules, one of the people routes for six months. the bank had a “clear plan to go back to private equity business.” business judgment rule”, Judge Rakoff month, these people said. familiar with the matter said. Airlines have urged Mr Shapps to significant growth” in the business. The ruling is preliminary and the situ- wrote, referring to the legal doctrine Personal data, including names, Ministers are planning to reach data publish the UK’s response to the pro- But the bank stressed fourth-quarter ation will now be resolved in a trial or a that keeps directors’ past actions from means of payment and travel itinerar- transfer agreements with individual posals as soon as possible “to provide results would be marred by a $450m settlement, but the judge’s statement of being second-guessed later. ies, is collected for each passenger airlines. This would enable informa- the industry with confidence for a writedown on its holding in York Capital legal theory could have long-lasting con- Lawyers for the Nine West direc- travelling between the EU and UK. tion sharing to continue if there was a potential no-deal scenario”. Management, the US investment group sequences, said Ryan Preston Dahl, a tors did not respond to a request for This is passed to British authorities to no-deal Brexit, a person familiar with The commission did not respond to that said it was winding down its Euro- partner at Ropes & Gray. comment. counter terrorism and serious crime. the government’s thinking said. In a request for comment. pean hedge fund business last month.
New Panasonic chief must add a dash of boldness to revive group
executive Yuki Kusumi said last month Tsuga hopes to break the deadlock by inside business that the group could achieve growth if it changing the company into a holding could find businesses that excelled company structure, echoing a move asia among its diverse portfolio, which Sony will also make in April. Panasonic stretches across 520 subsidiaries. But he says the shift, to be completed by 2022, stopped short of naming where those will help to accelerate decision-making Kana strengths were and neglected to feature by running the units independently. the automotive division he is running. Analysts hope that spinning off divi- Inagaki Mr Tsuga’s decision to partner with sions will make it easier to sell under- the mercurial Tesla chief executive Elon performing businesses. Musk required courage. Still, a century- But there is a critical difference old behemoth with a focus on steady between the two historic rivals. Follow- ight years ago when Kazuhiro profits was bound to clash with the ing its own decade of soul-searching and Tsuga took over as chief exec- brash ambitions of the US electric car restructuring, Sony has a clear picture utive of Panasonic, he maker. Those tensions manifested of what forms its core — to become a claimed his first mission was themselves as Panasonic decided supplier of global content in games, to return one of Japan’s great- against investing in Tesla’s new gigafac- films, animation and music. Since Ken- Eest consumer brands to a profitable tory in China. ichiro Yoshida took over as chief execu- “normal company”. Six years after a landmark deal for tive in February 2018, Sony’s share price He stemmed a record loss by pulling Panasonic’s $1.6bn investment in the has increased 78 per cent while Pana- out of plasma television and aimed to Nevada gigafactory, Tesla’s battery busi- sonic’s has plunged 30 per cent. reposition the company as an automo- ness is finally close In announcing the shift to a holding tive-and-housing conglomerate. At the to turning an Analysts hope that company, Mr Tsuga resurrected car bat- core of that transition was a bold $5bn annual profit, and teries as a “core” by rebranding it as an battery manufacturing tie-up with elec- it will benefit from spinning off divisions “energy business”. The three other cores tric vehicle maker Tesla signed in 2014. the global push will make it easier to sell remain a muddled mix of appliances, But as Mr Tsuga prepares to step towards electric industrial devices and a sprawling busi- down next June, his promise of a “nor- vehicles. underperforming ness based on connecting electronics. mal company” is leaving a bitter after- But Panasonic’s businesses When Mr Kusumi takes over, Pana- taste. For a group that prides itself on bumpy relation- sonic will be in a much stronger finan- innovation, the blandness of the pledge ship with Tesla is a window into the cial position than when Mr Tsuga was underscored the crisis it had fallen into. broader challenge faced by the biggest appointed. Even as Tesla begins manu- In the past few years, Japanese con- players in the batteries manufacturing facturing battery cells in-house, Pana- glomerates from Sony and Hitachi to industry. Battery making is a low-mar- sonic is bullish the carmaker will still Toshiba have gone on huge divestment gin business where pressure for cost need its technology knowhow and man- sprees as shareholder activism and cuts is immense and significant invest- ufacturing capability. demands for better governance stand- ments in research are required. But the 55-year-old Panasonic lifer ards pressured companies to have a Despite being a champion for Pana- will be inheriting a company that sharper focus on what parts were criti- sonic’s tie-up with Tesla, Mr Tsuga remains too big to inspire confidence cal to their business portfolio. wavered when it came to declaring it as that it can move quickly to keep its lead Panasonic followed a similar path, but a core business because of the losses it in the global battery race with Chinese even after years of streamlining, execu- was generating. For investors, it was and South Korean rivals. It will have to tives continue to grasp for words to equally frustrating that the manage- continue delivering profits, but a taste of define what kind of a company it is after ment also failed to provide a convincing Tesla-like boldness may be needed to Mr Tsuga failed to deliver on aspirations explanation of what other businesses revive the group. to focus on automotive and housing would be central to its expansion. operations. Its newly appointed chief As his final departing measure, Mr [email protected]
DECEMBER 16 2020 Section:Companies Time: 15/12/2020 - 18:38 User: jeremy.wright Page Name: Comps&Mkts1, Part,Page,Edition: ASI, 5, 1 6 ★ FINANCIAL TIMES Wednesday 16 December 2020
COMPANIES & MARKETS
Banks Support services Outsourcer Barclays fined over customers’ arrears Solutions 30 plunges after ‘Poor treatment’ of Mark Steward, executive director of arrangement at the expense of a “prior- and charges applied during the period. The regulator said that “on multiple enforcement and market oversight at ity debt” such as mortgage, council tax, The FCA monitored this programme. occasions, Mr Abbattista placed large Muddy Waters struggling borrowers the Financial Conduct Authority, child support payment or utility bill. Barclays has since proactively paid misleading orders for contracts for dif- leads to £26m penalty said: “Consumers should feel reassured But some Barclays customers who fell out more than £273m in redress to at ference referenced to equities, which he that their lender will work with them to behind on loan or card payments or least 1.5m customer accounts. did not intend to execute” — a practice joins attack help resolve any financial difficulties, went over their agreed borrowing limits Barclays said: “Since the issue was known as “spoofing”. Matthew Vincent whereas Barclays’ poor treatment of its were not always contacted or treated in first identified, we have implemented a Mr Abbattista’s legal representatives Barclays has been hit with a £26m fine customers risked making these difficul- the right way. In some cases, they were number of changes to our customer did not immediately respond to Jamie Powell — London for its treatment of borrowers who fell ties worse.” not offered suitable options in their cir- journeys, systems, processes and col- requests for comment. David Keohane — Wicklow into arrears or experienced financial Under the FCA’s rules, banks and cumstances, such as a reduction of league training to correct it.” Nick Bayley, head of UK regulatory Shares in Paris-listed outsourcing difficulties over a four-year period. credit card issuers are required to take interest or cancellation of charges. In a separate enforcement action yes- consulting at Duff & Phelps, suggested group Solutions 30 plunged almost 40 The UK regulator said that between steps to ensure they properly under- According to the regulator, Barclays terday, the FCA said it had fined the further similar enforcement actions per cent yesterday after high-profile April 2014 and December 2018, the stand any customer’s financial difficul- identified some of the problems with its former chief investment officer of hedge could follow. “This is the FCA’s very first short-seller Muddy Waters joined in lender had failed to follow the right pro- ties. They are expected to show forbear- procedures as early as 2014, but due to fund Fenician Capital Manage- market abuse outcome under the EU criticism of a company that has been cedures for contacting customers who ance and “due consideration” to cus- failings in its internal systems and con- ment £100,000 for market abuse. Cor- Market Abuse Regulation, which went assailed by an anonymous report. fell behind on loan repayments, and had tomers who have fallen into arrears or trols, they were not fully rectified. rado Abbattista was handed the penalty live in July 2016. We can see from its not had “appropriate conversations” are struggling to make repayments. Subsequently, the lender contacted and prohibited from carrying out regu- annual report that the regulator had 29 The Luxembourg-based group was tar- with them. The conduct caused it to The rules are designed to prevent any all customers to apologise for their lated activities for “creating a false and market manipulation cases open as at 31 geted last week by an anonymously offer them “unaffordable, or unsustain- customer under pressure from making treatment and confirm that it would misleading impression as to the supply March this year, so hopefully other out- published report, which was sent to able, forbearance solutions”. payments under a consumer credit refund them the relevant interest, fees and demand for equities” in 2017. comes will follow quickly in its wake.” equity analysts as well as market regula- tors, including France’s AMF. Carson Block, founder of Muddy Waters, began publicly criticising the company’s cor- porate governance last Friday. Technology. Digital diagnostics Solutions 30 has been accused of questionable transactions with an Ital- ian accountant, who was described by the anonymous report as “a known China’s online medical platforms take off mafia associate”. The report also raised doubts about the €1bn company’s com- plex structure, related party dealings and what it labelled its “impossible to Lockdowns and gaps in health reconcile” accounts. Solutions 30 suspended its shares coverage drive remote drug before the market opened on Friday. After trading resumed yesterday, the sales and patient consultations stock tumbled 38 per cent in Paris. The author of the report, who noted Christian Shepherd — Beijing that they remained anonymous because Chinese technology groups are vying to of the nature of the allegations, said the lead the country’s fledgling online situation “uncovered from analysing healthcare sector after the coronavirus public records . . . warrants immediate pandemic boosted demand for plat- investigation by authorities”. forms that provide virtual consultations The main accusations centre on Solu- and sell medicines. tions 30’s relationship with Angelo Zito, Following a decade of tepid uptake for a Bari-born accountant who, according online pharmacies and consultations, to local reports, did time in prison for his Covid-19 has prompted a clamour for links to the Sicilian mafia in 2000. remote healthcare services by patients Solutions 30 has admitted in its afraid to visit hospitals and investors responses to using Mr Zito’s services keen to tap into the expanding sector. when it redomiciled to Luxembourg in Digital alternatives could also poten- 2013, including the purchase of shell tially fill longstanding gaps in China’s companies formed by Mr Zito’s com- healthcare coverage, where the best pany which it described as “normal doctors and equipment are concen- market practice” to avoid “bureaucratic trated in top-tier hospitals in big cities. delays”. The company said it cut ties The growing interest in the industry with Mr Zito in 2016 after finding out was underscored last week when shares about his “controversial past”. in JD Health rose as much as 75 per cent Mr Zito defended himself in an inter- on their debut. The healthcare unit of view this week with Zone Bourse, a ecommerce group JD.com earlier raised French website, saying that the accusa- $3.5bn in Hong Kong’s biggest initial tions against him were being used to put public offering of 2020. a “black mark on all of Solutions 30”. Shares in AliHealth, the Hong Kong- He said while he had been accused of listed healthcare division of rival inter- money laundering by the report, “the net business Alibaba, are also up more Italian justice system sentenced me for than 170 per cent this year. links to the mafia, so nothing to do with “What Covid-19 did in many ways was money laundering.” He also down- to create a mass trial for a service that played the links, saying they stemmed people have not tried before,” said JD Health, led by long-term growth for China’s online minor or chronic illnesses”, Mr Xin said. The boom in China’s online health- from a passing contact with a lawyer Vikram Kapur, head of healthcare at chief executive healthcare sector would come from its But there are significant barriers to ‘What care industry has led to a proliferation who worked for the mafia: “All it takes is consultancy Bain Asia Pacific. Xin Lijun, ability to resolve longstanding problems growth in the industry, including Covid-19 of providers, but only those with scale a handshake, it just takes a phone call, it Even as China has returned to relative below, offers in the distribution of high-quality patients’ ability to make claims for and brand recognition are likely to sur- just takes a simple contact.” normality after controlling coronavirus access to highly healthcare across the country. online medical services through did in many vive, said Kitty Lee, head of Oliver Mr Block sent the second of two open with some of the strictest lockdowns, trained doctors JD Health works with local communi- employer-provided insurance schemes. ways was to Wyman’s health and life science prac- letters yesterday, asking for Solutions use of online healthcare platforms has that are often ties to offer access to highly trained doc- China launched an online medical tice in Asia Pacific. 30 to comment on how certain state- remained about 60 per cent to 70 per unavailable at tors who are frequently unavailable at insurance system in August last year, create a Analysts said JD Health and AliHealth ments made by Mr Zito compared with cent of that in the early stages of the out- small clinics — Roy small clinics. The service also helps pre- but only a handful of cities and prov- mass trial also had an advantage in selling over- declarations made by the company. break, Mr Kapur added. Liu/Bloomberg vent large public hospitals from being inces, including Beijing and Shanghai, the-counter drugs and prescriptions Muddy Waters has been betting against Ping An Good Doctor, a unit of China’s overwhelmed by “ordinary people with have formally implemented it. for a service thanks to their underlying ecommerce Solutions 30’s stock since May 2019, but largest insurer Ping An, had 67.3m Mr Xin said the national rollout of the that people platforms, which will take up a large in a break from its normal practice, had monthly active users as of June and was public reimbursement system for portion of revenue growth in coming not disclosed why until last week. hosting an average of 831,000 consulta- online healthcare would probably take have not years as rates of chronic diseases rise. Solutions 30 has rebutted the charges tions every day. That made it China’s two to three years. tried before’ Companies may also have to contend levelled by the report and Mr Block’s most popular online healthcare pro- There are more than 300 local gov- with a shifting regulatory environment. first letter, saying in a statement on vider in terms of users, outpacing JD ernment departments across the coun- Ms Lee said the policy framework China Monday that it had been targeted by a Health and AliHealth. try that are responsible for managing was building had yet fully to account for “destabilisation campaign” using “mali- Online drug sales, meanwhile, could health insurance, and JD Health has to all the risks arising from the sector’s cious and disloyal methods”. reach Rmb516bn ($78.9bn), or 15 per speak with each of them to work out growth, including challenges in stand- Solutions 30 has appointed law firm cent of China’s total by 2025, according how to manage claims for online consul- ardising care and products across the August Debouzy to file a complaint with to estimates by Citi. That figure is up tations or prescriptions. “Some local country. “There remain a lot of uncon- the PNF, France’s specialist financial from 6 per cent in 2018. governments’ finances are ample and nected dots,” she said. crimes unit, against an unnamed indi- Xin Lijun, chief executive of JD some are in short supply, so they will be Additional reporting by Wang Xueqiao in vidual “for dissemination of false and Health, told the Financial Times that more cautious,” Mr Xin added. Shanghai misleading information”.
Retail Travel & leisure Inditex cuts inventory and costs as sales revive Cleveland baseball team to drop ‘Indians’ name
Daniel Dombey — Madrid loss of €409m for the February-April and 88 per cent were subject to curbs. Sara Germano — New York The move follows a decision this sum- intensified attention to race relations. period. “It’s not been an easy challenge for Indi- mer by the American football franchise Both sports teams had previously Inditex, the biggest clothing retailer, The Major League Baseball franchise in Pablo Isla, executive chairman, said: tex — people haven’t been so focused on in the US capital to rebrand as the Wash- faced scrutiny for their use of native ter- cut inventory and operating costs in Cleveland, Ohio intends to drop its “These results are the direct conse- fashion in a year most of us have mostly ington Football Team. That organisa- minology for their mascots, but Wash- the third quarter as sales rebounded to team name of more than a century, quence of effective management in spent at home,” said Anne Critchlow, tion bowed to years of pressure to give ington owner Dan Snyder had once defi- close to the levels of a year ago, despite making it the second American profes- every area of the company and the abil- analyst at Société Générale. up its moniker, the Redskins, widely antly declared that he would “never” the effects of the pandemic and the sional sports team this year to change ity to react and adapt in an unpredicta- “But they have managed to keep up considered a racial slur. change course. impact of working from home on the insignia perceived as racially insensi- ble environment.” sales, because their short lead time for The shift away from ethnic mascots Cleveland’s baseball franchise has industry. tive by indigenous groups. The group expected inventories to products allows them to adjust their underscores the magnitude of social been known as the Indians since 1915. In results published yesterday, the grow less than sales, largely because of offering to more comfortable clothes, In a statement, the team said it would change within the US, where the police About three years ago, it abandoned use Spanish group, known for its Zara chain, and the fact they use stores for stock continue using the Indians name until killings of George Floyd and Breonna of a polarising logo — which depicted a posted sales of €6.05bn in the three helps them keep customers supplied.” the organisation was able to finalise a Taylor this year prompted renewed and cartoonish indigenous chief — on uni- months to the end of October, a 14 per Online sales increased The company said it would resume its new moniker, a timetable for which has forms and in-stadium signage, following cent fall on the same period a year ago. 75% in the nine months normal dividend policy for the full year not been established. pressure from Rob Manfred, MLB com- Net income dropped 26 per cent to of 2020. But it acknowledged the latest Paul Dolan, the Cleveland team’s missioner, who called it “no longer €866m, though the decline was 13 per to October compared with restrictions and closures that began in owner, said the franchise consulted with appropriate”. cent when currency fluctuations were the same period last year mid-October. Several countries have local indigenous groups regarding its Formally rebranding a professional excluded. toughened such curbs in recent days. decision. sports franchise can take years and cost The company said it had cut its inven- employment of technology and stock Ms Critchlow said: “One problem they “Hearing first-hand the stories and millions of dollars after taking into tory 11 per cent and operating expenses management, including using stores to have had that’s a little hidden by the pri- experiences of Native American people, account intellectual property, mer- 10 per cent in the quarter. help satisfy online demand. mary effects of the pandemic is cur- we gained a deep understanding of how chandise and outfitting expenses and Sales, which in August were 87 per The virus crisis has accelerated the rency. The weakness of currencies in tribal communities feel about the team the securing of approval from league cent of their level in the same month group’s digital shift, with online sales up emerging markets, where much of their name and the detrimental effects it has officials. last year in constant currency terms, 75 per cent in the nine months to Octo- growth strategy is focused, took 4 per on them,” he said. The capital’s football franchise began had reached 94 per cent by October. ber compared with the same period last cent off sales and 13 per cent off profits News of the expected name change its 2020 season under the name the In April, the corresponding figure year. By contrast, 5 per cent of its stores in the third quarter.” was first reported by The New York Owner Paul Dolan says the franchise Washington Football Team as it evalu- was 28 per cent, contributing to a net remained closed in the third quarter See Lex Times. consulted with indigenous groups ated its options.
DECEMBER 16 2020 Section:Companies Time: 15/12/2020 - 18:50 User: timothy.digby Page Name: CONEWS1, Part,Page,Edition: ASI, 6, 1 Wednesday 16 December 2020 ★ FINANCIAL TIMES 7
DECEMBER 16 2020 Section:Ad Page Time: 15/12/2020 - 10:44 User: william.baxter Page Name: AD VALE, Part,Page,Edition: USA, 7, 1 8 ★ FINANCIAL TIMES Wednesday 16 December 2020
COMPANIES & MARKETS Spanish blue-chips jostle for Brussels aid cash Seat, Telefónica and Iberdrola lay out grand ambitions as they plot projects qualifying for share of €750bn pot
Volkswagen unit Seat has called for Daniel Dombey — Madrid EU co-financing of projects to roll Spanish blue-chips including Tele- out electric charging points and fónica, Iberdrola and Seat are position- provide infrastructure for fully ing themselves for tens of billions of wired factories — Angel Garcia/Bloomberg euros in EU coronavirus aid they hope will transform their industries and ben- efit their bottom lines. Spain expects to receive some €140bn from the €750bn EU coronavirus recov- access to high-speed internet would ery fund, which leaders approved last encourage companies to locate opera- week, making Madrid one of the biggest tions throughout the country. “If we are beneficiaries of the programme, along able to take broadband to 100 per cent with countries such as Croatia, Bulgaria, of our national territory, the possibili- Greece, Portugal, and Romania. ties are almost endless.” Spanish companies have been draw- She emphasised that modernising ing up proposals for projects co-fi- Spain’s large cohort of small and medi- nanced by the aid, which will prioritise um-sized enterprises was a big priority clean energy and digitalisation, in antic- for the recovery fund. ipation of a once-in-a generation trans- But this was also likely to involve big- fer of resources. ger groups. However, as companies across Europe For example, Telefónica said its retail explore the potential benefits of the outlets could be used to help give train- huge injection of public funds, some officials warn against excessive opti- mism about the aid’s effectiveness. ‘We have to be prudent According to draft Spanish govern- and avoid an excess of ment legislation on the management of the funds, the industry ministry will optimism. We have to learn compile a registry of interested compa- from the errors of the past’ nies, which will have preferential con- sideration for carrying out projects, receiving subsidies or forming part of ing for SMEs to migrate procedures and consortiums. services online, and suggested that its experience of running a large-scale Where Madrid intends to spend bn Spain’s economy strains to keep up Sales slide at Iberdrola and Telefónica “reskilling programme” could help ‘This is a unique chance. identify the training deficit for the Span- We have to make a bold of EU grants in - * GDP at constant prices, annual change Sales, rolling months ( bn) ish population. By sector ( ) But Ms Herrero said the government’s Resilient infrastructure Iberdrola Telefónica effort to identify sectors plans to attract “co-investors” from the and ecosystems with the best prospects’ Education Urban and private sector were a departure from rural “traditional procedures in which the As it makes its case to be on the list, development government designs projects and com- Spain Telefónica has proposed that EU funds Industrial, SMEs panies carry them out”. and tourism EU ex UK be used to help make Spain the first modernisation - As a result, it was all the more impor- Energy country in the bloc with 100 per cent Promotion tant to provide sober evaluations of risk Science, innovation transition fibre optic coverage — by 2025, at the of culture and probable demand, and to ensure and health and sport cost of about €4bn. Current coverage is - that projects were assessed by an inde- 75 per cent. Period of extended pendent agency. New care economy and underperformance The operator said the aid could also employment policies Administration “Experience shows that we have to be - help roll out a standalone 5G network * Percentages include funds from both the Recovery and Resilience Facility prudent and avoid an excess of opti- covering 85 per cent of the country. and REACT-EU mism,” she said. “We have to learn from “Spain could become the digital Hea- Sources: Government of Spain; Refinitiv; FactSet the errors of the past.” throw of Europe, the destination for the cables that come to Europe from the US, Latin America, from Asia, wherever,” incentives would accelerate electrifica- a contraction in GDP of more than José María Álvarez-Pallete, Telefónica tion of energy-intensive industries. 11 cent this year. chairman and chief executive, said. He said that public funds would Cristina Herrero, president of the “We can offer an ecosystem for Nokia, allow Iberdrola to complete a €1.8bn Independent Authority for Fiscal Huawei, Ericsson, Samsung and the tens project to use hydrogen to make Responsibility, the country’s fiscal of others that could come.” fertiliser “much before” its current 2027 watchdog, said private sector expertise Iberdrola is similarly expansive in its target date, as well as to accelerate could play a vital role given the ambitions and effusive about the fund. another project to manufacture large- “demanding” timelines involved. The €71bn company suggests that aid scale equipment to extract hydrogen But she warned that previous national be used to quicken the country’s push to from water. and EU plans had “crowded out” private drive down carbon emissions by invest- “These are concrete projects that will investment by providing incentives for ing in electricity storage, “clean hydro- need public support to be carried out.” projects that would have been carried gen”, the replacement of domestic gas Seat, the wholly-owned Volkswagen out in any case. burning boilers and the installation of subsidiary, has also called for EU co-fi- She argued that in areas such as digi- electric car charging points on the coun- nancing of projects to roll out electric talisation and training, Spain lagged try’s motorway network — the most charging points and provide infrastruc- behind other European economies “by extensive in the EU. ture for fully wired factories. so much that we cannot hope that the “This is a magnificent opportunity to “This is a unique chance for Spain,” EU plan alone will be enough”. transform our productive model into a said Josep Maria Recasens, Seat’s direc- Nevertheless, the government is hop- more sustainable and competitive one,” tor of strategy. “We have to make a bold ing the public-private collaboration will Ignacio Galán, chairman and chief exec- effort to identify the sectors with the have a big multiplier effect. utive, said. best prospects . . . so they can be trans- “According to analysts, each euro of While emphasising that his multina- formed through the intelligent use of public money invested could bring tional group had already promised to these funds.” another four euros [from private invest- invest €75bn over the next five years, The government of Pedro Sánchez, ment],” María Jesús Montero, budget Mr Galán argued that some green prime minister, wants to begin minister, said. “That’s the ratio that is priorities still needed aid to become EU-funded projects as soon as possible expected from this investment.” more economically viable, and that to overcome what it expects to be Ms Montero argued that universal
Retail GBL takes control of Canyon Bicycles
Olaf Storbeck — Frankfurt company, pushing its growth rate to 30 details said that private equity bidders Kaye Wiggins — London per cent this year. Canyon founder were offering a higher price but that Mr Adidas’s largest shareholder Groupe Roman Arnold recently told German Arnold, who has so far been Canyon’s Bruxelles Lambert is banking that the magazine Focus that demand has been controlling shareholder, preferred GBL global cycling boom will continue by so strong that “50 per cent [growth] had because of its long-term investment taking a controlling stake in fast-grow- been possible”, but adding that growth perspective of a decade or more. ing premium brand Canyon Bicycles. rate would have overwhelmed the com- Mr Arnold said that the new investor pany. convinced “with [its] passion for our The Brussels-based holding company, GBL pre-empted potential offers from business, years of experience and long- which is backed by Belgium’s Frère and private equity groups including KKR term focus”. Canada’s Desmarais families, will take a and Carlyle Group, people familiar with Canyon, which has traditionally con- 60 per cent stake in privately held Can- the deal said. centrated on road and mountain bikes, yon, it said yesterday. The deal values “I’m completely surprised,” said one recently extended its fleet to urban the German-based company at about person who advised private equity suit- bikes designed for day-to-day use in cit- €800m including debt, according to ors. “I didn’t have the GBL guys on my ies as it aims to lift sales to €1bn in the people familiar with the transaction. radar. I didn’t know they did this kind of coming years. Former Apple executive Tony Fadell transaction.” Two people briefed on the The company is also extending its — who is one of the people credited with fleet of electric bikes and in September inventing the iPod — is also co-investing unveiled a concept study of a four- into the German brand alongside GBL. wheeled vehicle that is a mixture of an Mr Fadell, an avid cyclist, will join the electric car and bike, which it touted as a company's advisory board. “revolutionary alternative to both the The manufacturer, which sells road automobile and the bicycle”. bikes for as much as €12,000, is one of As part of the deal Mr Arnold’s stake Europe’s biggest bicycle brands and sells will reduce from 60 to 40 per cent. to consumers through its own website. Canyon said that the founder would Over the past three years the company reinvest “a significant part” of his pro- has doubled annual sales to €400m and ceeds into the company without disclos- is growing by 25 per cent a year. ing details. GBL will also acquire a 40 Cycling’s surging popularity during per cent stake in Canyon previously the pandemic, which has caused held by private equity fund TSG Con- demand for two-wheelers to outstrip sumer Partners. supply in cities such as London and Ber- GBL holds stakes in 11 listed compa- lin as well as boosting cycling infrastruc- Canyon has benefited from a surge in nies including Adidas, Pernod Ricard ture, has been a further boon to the cycling brought on by the pandemic and LafargeHolcim.
DECEMBER 16 2020 Section:Companies Time: 15/12/2020 - 18:45 User: timothy.digby Page Name: CONEWS2, Part,Page,Edition: ASI, 8, 1 Wednesday 16 December 2020 ★ FINANCIAL TIMES 9
COMPANIES & MARKETS
Fixed income. US bonds Fixed income China rebukes Historic rally threatened by rating agency over quality spectre of renewed inflation control issues
Hudson Lockett and Thomas Hale Hong Kong Sun Yu — Beijing China has suspended one of its top credit rating agencies after a former executive was accused of taking “mas- sive” bribes, as a growing pile of defaults hit the $4tn corporate debt market. The China Securities Regulatory Commission said yesterday it was tem- porarily freezing the licence of Golden Credit Rating and forbidden it from tak- ing new business for three months. The move came as Shandong Ruyi, China’s largest textile manufacturer, looked set to default on a second bond. China’s debt markets, the world’s sec- ond-biggest, have been hit by a series of defaults by state-run enterprises recently. Investors had assumed that authorities would bail out these groups. The regulator yesterday said Golden Credit had failed to justify some of its credit ratings and upgrades. It ordered it to “immediately carry out a compre- hensive rectification . . . strengthen internal controls and compliance man- agement, strictly police business prac- tices and improve the quality of ratings”. China’s credit rating agencies have been criticised for standing by their tri- ple A ratings for troubled state-owned companies in the face of the defaults. “Most private investors do not take credit ratings seriously as the system
Fund managers warn that US inflation predictions rise as investors eye economic recovery The Fed said could unleash a jolt of pent-up activity. in August it “The stars are aligning to put the econ- ‘The government investors are ‘complacent’ US -year break-even rate ( ) would tolerate omy on a pace for a robust recovery,” wanted to set [it] as an higher levels said Sonal Desai, chief investment example and make over risk of price growth of inflation — Getty officer at Franklin Templeton’s fixed income group. “That sets us up for defi- others behave’ Tommy Stubbington — London nitely some inflation in the second half Colby Smith — New York of next year.” does a bad job in measuring risks,” said a Investors are taking cover. Demand former China rating agency executive. Bond investors are bracing themselves for Treasury inflation-protected securi- He said agencies are motivated to for the risk that 2021 could herald the ties has surged in recent weeks, with inflate their ratings to attract clients and return of a long-dormant foe: inflation. roughly $4.5bn poured into relevant are pressured to support government- The price of government bonds has funds since the beginning of November, linked groups’ financing efforts. rocketed this year, largely because of the according to EPFR. The executive called the suspension giant bond-buying programmes under- Investors are already seeking alterna- “a political decision”. “The government taken by central banks to soften the Source: Bloomberg tives to ultra-safe assets such as Treas- wanted to set [it] as an example and financial impact of the pandemic. Inves- uries, sending prices lower and yields make others behave,” he added. tors are assuming this support will con- ery. If inflation picks up in a way that’s BlackRock’s Bob Miller, who heads its higher. Benchmark 10-year Treasury The problems in China’s bond mar- tinue, even as economies pull out of not expected, that would challenge the fundamental fixed income team for the notes now yield about 0.9 per cent, hav- kets come as foreign investors have this their 2020 slump. market’s entire view.” Americas, is among those who worry ing traded below 0.7 per cent less than year increased their holdings of Chinese A rebound in inflation, which has Concerns about inflation are gather- that experience has left investors “com- three months ago. treasuries and debt issued by big policy been elusive since the 2008 financial ing pace particularly in the US, prompt- placent” about the prospect of con- Some investors question whether any banks, the latter at a record. However, crisis, could disrupt these widely held ing some speculation that the Federal sumer price increases next year. And pick-up in inflation would last, citing the their exposure to the default-hit corpo- expectations by making the debt mar- Reserve could be compelled to with- now, with bond yields at depressed lev- scale of the coronavirus shock and the rate credit market is low. ket look less attractive. Bonds typically draw its support sooner than indicated. els, the room for error is very limited. failure of US policymakers to agree on Shandong Ruyi, once known as the provide investors with a fixed stream of The shift in pricing is subtle but signif- “The market is a little bit hung up on additional fiscal support. Steven Oh, LVMH of China, defaulted on a Rmb1bn interest payments, which become less icant. In the eurozone, inflation expec- the last decade’s experience,” he said, global head of credit and fixed income at ($153m) bond on Monday and looked valuable as the overall cost of goods and tations remain far below the ECB’s tar- adding that investors should buy assets PineBridge Investments, thinks a likely set to miss payment on a separate services accelerates. get of just below 2 per cent. But the 10- that protect against inflation on a two- rise in inflation in the spring should be Rmb1bn bond due yesterday. If price pressure finally erupts, it year US “break-even” rate — a proxy for to-four year time horizon. fleeting and largely ignored by investors “In a way it’s the bond market hitting would also ricochet through riskier investors’ expectations over the next His argument rests on the pivot from and central bankers alike. puberty,” said Edmund Goh, director of assets. The 2020 rally in global equities decade — is rising. It has climbed from the Fed this year. The US central bank Assuming central bankers will look Asia fixed income at Aberdeen Standard has been powered by the rise in bond below 1.6 per cent in September to about said in August it would tolerate higher the other way comes with considerable Investments, of the recent defaults. prices, which has pushed borrowing 1.9 per cent, putting it at the highest levels of inflation to make up for the risks, however. Historically high prices He added that the repayment woes costs to historic lows and eased jitters since May 2019 and just below the Fed’s prolonged period in which consumer of both bonds and stocks are premised would “definitely” give investors second over the widening gulf between stock average inflation target of 2 per cent. price increases have faltered below its ‘The stars on expectations of years of rock-bottom thoughts about buying into corporate prices and corporate profits. The chance of inflation skittering out target, a switch from its previous policy interest rates, and both could tumble if debt in China. Many foreign investors “Inflation staying low and well- of control is low, analysts said. Given the of pre-emptively raising interest rates to are aligning the Fed signals even a chance of higher were already sceptical over China’s offi- behaved is the foundation on which eve- pandemic, it may be some time before stymie inflation above 2 per cent. to put the borrowing costs, according to Shamik Our global cially low default rate, which implied rything in markets is currently priced,” workers are in a position to push for Market participants reckon this economy Dhar, chief economist at BNY Mellon team gives you the presence of “zombie companies”. said Karen Ward, chief market strate- wage increases. And even once labour means US interest rates, which exert a Investment Management. market-moving The suspension came less than 24 gist for Europe at JPMorgan Asset Man- markets heal, the demographic and pull across all assets, will remain teth- on a pace “That’s a world where fixed income news and views, hours after authorities said they would agement. “Investors’ assumption is that technological shifts that many econo- ered to zero at least into 2023. for a robust stops being a hedge for equities, and 24 hours a day prosecute Jin Yongshou, the agency’s central banks will be able to stay accom- mists have said depressed inflation over But once Covid-19 vaccines are widely both sell-off together,” he said. “That ft.com/markets former general manager, for allegedly modative well into the economic recov- the past decade will remain in place. distributed, businesses and consumers recovery’ would be a big shock.” taking bribes to boost issuers’ ratings.
Commodities Equities Travel woes and vaccine delays weigh on Fear of dilution prompts investors in next year’s oil demand outlook, says IEA AirAsia long-haul unit to jettison stock
Anjli Raval business travel will probably remain ulation programmes, it said “it will be Stefania Palma — Singapore tractual commitments [that] will pre- secure creditors’ support for the debt muted as companies keep a tight rein on several months before we reach a criti- Peggy Hollinger — London cipitate a potential liquidation of the air- restructuring. Oil demand will rebound more slowly costs. cal mass of vaccinated, economically line” barring restructuring. “Several lessors have intervened in than initially anticipated in 2021 as the Shares in AirAsia’s long-haul unit fell as Oil prices crossed back above $50 a active people and thus see an impact on AirAsia group’s Japanese unit has filed the restructuring proceedings to regis- aviation sector takes longer to recover much as 9.5 per cent yesterday in barrel earlier this month for the first oil demand”. for bankruptcy and it is reviewing its ter their objections to the scheme,” Air- from the coronavirus hit, the Interna- response to a RM500m ($123m) rights time since March, fuelled by optimism The group warned that the Christmas investment in India. Asia X said. The carrier added that it tional Energy Agency said yesterday. and share issuance plan as the Malay- that a rollout of Covid-19 vaccines could period could bring another surge in Cov- sian carrier tries to win creditor back- On Monday, AirAsia X also said it was would continue engaging with creditors Global consumption is expected to spur economic activity and a recovery id-19 cases and the possibility of more ing for a proposed debt restructuring. seeking to further shrink its issued to ease concerns. come in at 96.9m barrels a day next in oil demand. Brent crude, the interna- confinement measures. share capital by 99.9 per cent in “The alternative to the scheme is a liq- year, it said. While this is up from the tional marker, was broadly flat in early It is possible that, after the holidays, The tumble in AirAsia X’s stock came response to “representations made by uidation of the airline without any 91.2m b/d forecast for 2020, it is about trading yesterday at $50.23 a barrel. “a third wave of the virus will affect after the airline on Monday night pro- returns to creditors”. 200,000 b/d below what the Paris-based While the IEA noted “the understand- Europe and other parts of the world posed a rights issue of up to RM300m One AirAsia X creditor, who did not body predicted in November. able euphoria” around the start of inoc- before vaccines have time to take effect. and an issuance of new shares via a spe- ‘A lot will depend on the wish to be identified, said last month In its monthly market report, the IEA This would bring renewed downward cial purpose vehicle of up to RM200m. ability to actually raise the that it objected to the debt restructuring said governments would probably keep pressure on oil demand,” said the IEA. The company said the plan was a plan. “We suspect we may have to make in place border closures and travel Crude stockpiles that had built up as “critical component” of the RM63.5bn amount they want [in the some judgment call and take impair- restrictions until a vaccine was widely consumption dropped were unlikely to debt restructuring that is a last-ditch rights and share issuance]’ ments on receivables in the current available, extending the disruption to deplete until the end of 2021, it added. attempt to save its business. But the year. That will diminish our exposure.” the airline industry. On the supply side, global oil produc- arrangement is subject to the approval certain creditors”. It had previously pro- The latest fundraising would finance “Demand is clearly going to be lower tion rose 1.5m b/d in November to 92.7m of the Malaysian bourse and AirAsia X posed a reduction by 90 per cent. working capital requirements including for longer than expected,” the IEA said. b/d as the US sector recovered from hur- shareholders at a forthcoming extraor- Paul Yong, equity analyst at DBS, said staff salaries and aircraft activation The body, which advises big econo- ricane shut-ins and Libya built its out- dinary general meeting. yesterday’s share price drop was not costs for 24 months, according to a stock mies on energy matters, added that put back up. The IEA said the deal AirAsia X’s deputy chairman said in surprising because of the dilution effect exchange filing. while consumers might be keen to struck this month by Opec and allied October that the carrier had run out of of a rights issue. But longer term, “a lot The airline industry has been pum- resume holidays once travel bans were producers such as Russia to increase money and was liquidating its Indonesia will depend on the ability to actually melled by the pandemic, with border lifted, older people would remain cau- supplies by 500,000 b/d next month — business as well as writing down its 49 raise the amount they want to raise.” controls and travel restrictions all but tious. well below the 2m b/d initially planned per cent stake in Thai AirAsia X. AirAsia X, which was founded by wiping out passenger traffic. Others affected by the financial — was “based on a recognition that the That same month the airline, whose Malaysian tycoon Tony Fernandes and In July, AirAsia’s auditor warned of impact of the pandemic will have less to Crude oil prices crossed back above market remains fragile and is in need of shares have fallen 39 per cent this year, has been in operation for 13 years, has “significant doubt” about whether it spend on tickets, it predicted, while $50 a barrel earlier this month careful adjustment”. warned of “an imminent default of con- encountered resistance as it tries to could continue as a going concern.
DECEMBER 16 2020 Section:Markets Time: 15/12/2020 - 18:09 User: alistair.fraser Page Name: MARKETS1, Part,Page,Edition: EUR, 9, 1 10 ★ FINANCIAL TIMES Wednesday 16 December 2020
COMPANIES & MARKETS
The great disconnect has The day in the markets continued much longer than most expected What you need to know 3 Wall Street on track to snap four- US dollar slides towards -year low against peers session losing streak DXY index 3 Pound strengthens on reports of progress in Brexit talks Mohamed El-Erian 3 US dollar closes in on a two-year low against peers Global stocks were mixed yesterday as Markets Insight governments imposed stricter Covid-19 restrictions and political negotiations on both sides of the Atlantic remained hat, if anything, will ful dynamic, and one that inevitably sufficient to fully offset the impact of unresolved. happen to the great overshoots. corporate bankruptcies or the detri- Wall Street’s S&P 500 index was up disconnect between Nothing is more reassuring to an mental effects of higher inequality. more than 1 per cent at lunchtime in New Wall Street and Main investor than the knowledge that cen- Investors might rue the day they ven- York, rebounding from four consecutive Street? This is a key tral banks, with much deeper pockets, tured into asset classes far from their days of losses, while the tech-heavy Wquestion for investors positioning their will buy the securities they own — par- natural habitat that lack sufficient Nasdaq Composite climbed 0.8 per cent. portfolios for 2021. It is also an impor- ticularly when these buyers are willing liquidity in a correction. The improved market sentiment tant question for the global economy to do so at any price and have unlimited Navigating such a landscape will continued “to weigh on the dollar”, said and policymakers. patient capital. The rational investor require analytical tools that would, iron- Win Thin, global head of currency Throughout this pandemic year, we response is not just to front-load their ically, have detracted from returns dur- strategy at Brown Brothers Harriman, have experienced a further sharp wid- buying but also to look for related ing the bulk of the liquidity-driven rally. referring to weakness in the greenback. ening of an already remarkable gap opportunities where return-seeking I am thinking here of such things as The US Dollar index — a measure of between financial markets and the funds will be pushed to. The result is not highly granular credit and technical the currency against six peers — slid 0.3 Source: Refinitiv economy. A rapid recovery in asset just seemingly endless liquidity-driven analyses, scenario planning, smart per cent to close in on a two-year low. prices from the March 23 lows took rallies regardless of fundamentals. It structuring, assessments of liquidity in Europe’s region-wide Stoxx 600 closed major US indices to record levels, even also alters market conditioning and market segments, and a better under- 0.3 per cent higher but the strong pound Washington. Renowned investor Warren the South East as infections climbed, before the recent good news on inverts traditional cause and effect. standing of the extent of recoverability weighed on the global-facing companies Buffett said yesterday the US was while New York mayor Bill de Blasio Covid-19 vaccines. Combined with even Based on what we know today, the of investment mistakes. It also includes of London’s FTSE 100, which slid 0.3 per fighting an “economic war” and called on warned that the biggest US city faced a more accommodative central bank poli- challenges facing investors in 2021 are a willingness to re-examine some con- cent. lawmakers to support small businesses potential “full shutdown”. cies, this enabled record debt issuance ventional wisdom. This involves Sterling surged 0.9 per cent against the being harmed by the pandemic. Data released yesterday showed the at historically low levels of compensa- Central banks’ deepening rethinking the traditional portfolio con- dollar to $1.3442 yesterday on reports The health crisis remained front and UK unemployment rate rose to 4.9 per tion for creditors. struct of putting 60 per cent of funds that considerable progress was being centre for investors, said Shoqat cent in the three months to October. Still, Meanwhile, the global economic situ- distortion of markets into equities and 40 into fixed income made on a trade deal between the UK Bunglawala, a portfolio manager at some economists were optimistic about ation remains uncertain. Another coro- will be harder to defend now that yields on government bonds and the EU. Goldman Sachs Asset Management. next year. “With the rollout of vaccines navirus wave is sending parts of Europe are so artificially depressed. “Big buzz . . . among Tory MPs that the Markets were “still being driven in large set to boost demand in 2021, we now back into recession. That is sapping in a recovering economy Already, the great disconnect has con- UK is heading towards a Brexit deal with part by the spread of the virus” and were think that the jobless rate will peak at 7 energy out of the US recovery, and limit- tinued much longer than most the EU,” wrote Nicholas Watt, a BBC pricing in the rollout of a vaccine and a per cent rather than 9 per cent and be ing the extent to which better perform- probably less about the first few weeks expected. This illustrates, yet again, the political editor, on Twitter. broad recovery, he said. back at 4 per cent by 2023,” noted Ruth ing east Asia can be a powerful locomo- and more about later in the year. That is unintended consequences of a policy In the US, traders were monitoring Heightened restrictions were Gregory, senior UK economist at Capital tive of global growth. The longer this unless one or more disrupter is sud- approach that places an excessive bur- news on a potential fiscal stimulus deal in announced on Monday for London and Economics. Camilla Hodgson continues, the greater the risk of “scar- denly accelerated — a monetary policy den on central banks. The hope for 2021 ring” that erodes longer term growth. reversal (highly unlikely), a market is that, with a vaccine-enabled eco- An uncertain economic outlook with accident due to excessive risk-taking nomic recovery, better corporate funda- Markets update notable dispersion among systemically (more likely but not overwhelmingly mentals will start validating elevated important countries is but one of the so), and mounting corporate bankrupt- asset prices and allow for an orderly key Covid-19 legacies that markets cies (most probable but would play out rebalancing of the monetary-fiscal- have set aside due to sky-high faith in over time). While investors will con- structural policy mix. There are two US Eurozone Japan UK China Brazil central banks’ ability to shield asset tinue to surf a highly profitable liquidity risks, and not just for markets. First, Stocks S&P 500 Eurofirst 300 Nikkei 225 FTSE100 Shanghai Comp Bovespa prices from unfavourable influences. wave for now, things are likely to get what is desirable may not be politically Level 3670.88 1517.26 26687.84 6513.32 3367.23 116303.41 Markets being markets, investors have trickier as we get further into 2021. feasible, and second, what has proven % change on day 0.64 0.27 -0.17 -0.28 -0.06 1.48 readily extended the protective nature Central banks’ deepening distortion feasible is no longer sustainable. Currency $ index (DXY) $ per € Yen per $ $ per £ Rmb per $ Real per $ of the umbrella to asset classes that, of markets will be harder to defend in a Level 90.669 1.215 103.735 1.340 6.545 5.102 at best, are only indirectly supported recovering economy amid rising infla- The writer is president of Queens’ College, % change on day -0.046 0.165 -0.331 0.601 0.118 -0.252 by central bank funding (such as emerg- tionary expectations. As welcome as Cambridge university, and adviser to Govt. bonds 10-year Treasury 10-year Bund 10-year JGB 10-year Gilt 10-year bond 10-year bond ing markets). It is an extremely power- this recovery will be, it is unlikely to be Allianz and Gramercy Yield 0.903 -0.613 -0.002 0.258 3.288 6.750 Basis point change on day 0.090 0.800 -1.050 3.700 -1.400 -6.900 World index, Commods FTSE All-World Oil - Brent Oil - WTI Gold Silver Metals (LMEX) Level 416.61 50.80 47.61 1831.15 23.86 3455.40 % change on day 0.50 0.97 1.28 -0.59 0.17 0.37 Yesterday's close apart from: Currencies = 16:00 GMT; S&P, Bovespa, All World, Oil = 17:00 GMT; Gold, Silver = London pm fix. Bond data supplied by Tullett Prebon. Main equity markets
S&P 500 index Eurofirst 300 index FTSE 100 index 3840 1600 7040
3680 1520 6400 3520 1440 5760 3360 1360
| | | |||||| | | | | | | | | | | | 3200 | | | |||||| | | | | | | | | | | | 1280 | | | |||||| | | | | | | | | | | | 5120 Oct 2020 Dec Oct 2020 Dec Oct 2020 Dec Biggest movers % US Eurozone UK Halliburton 4.98 Arcelormittal 7.27 Johnson Matthey 4.07 Wynn Resorts 4.45 Thyssenkrupp 6.79 Melrose Industries 3.59 Boston Scientific 4.25 Volkswagen 5.76 Standard Life Aberdeen 3.05 Ups Skyworks Solutions 3.96 Porsche 5.52 Jd Sports Fashion 3.04 Western Digital 3.76 B. Sabadell 5.06 Persimmon 2.71 % Apartment Investment And Management -87.41 Danske Bank -2.76 Rightmove -3.40 Norwegian Cruise Line Holdings Ltd -2.70 Jeronimo Martins -2.74 Rolls-royce Holdings -2.91 Newell Brands -2.29 Inditex -2.48 Hikma Pharmaceuticals -2.78
Downs Royal Caribbean -2.08 Kpn -2.28 Glaxosmithkline -2.50 Alliance Data Systems -2.01 Iliad -2.27 Astrazeneca -2.43 Prices taken at 17:00 GMT Based on the constituents of the FTSE Eurofirst 300 Eurozone All data provided by Morningstar unless otherwise noted.
Wall Street Eurozone London
Prevail Therapeutics, a gene therapy The announcement of “robust business” JD Sports rose following news it had group, soared on news that it was being this year helped to lift Metro. The bought US company Shoe Palace for bought by Eli Lilly for $22.50 a share, German wholesaler proposed a dividend $681m. The UK retailer will pay $325m in an 80 per cent premium on Monday’s of €0.70 per share while like-for-like sales cash and issue a 20 per cent equity stake closing price. for the financial year 2019/20 were down in its US subsidiary, valued at $356m, to The deal was “in line with Lilly’s 3.9 per cent, at the more conservative end the four Mersho brothers who run Shoe mergers and acquisitions strategy of of guidance. Palace. smaller complementary bolt-on deals This year the Düsseldorf group was “In a stroke, it gets JD Sports, which and in our view fills a hole in Lilly’s also “able to gain significant market previously acquired Finish Line along the pipeline, with obvious synergies given shares in its core business, amongst East Coast and middle America, an Lilly’s size and clinical trial expertise”, said others in Germany, France and Italy”. opportunity to get even closer to the US analysts at Bank of America. Umicore rallied after upgrading its consumer, particularly the Latino and Eli Lilly, which is rated “buy” by 2020 guidance. The Belgian chemicals Hispanic communities,” said Greg BofA with a target price of $180 a share, group expected adjusted earnings before Lawless, an analyst at Shore Capital. also climbed. interest and taxes to be in the region of A performance that was “ahead of the Norwegian Cruise Line fell after €530m for the full year, up from €465m to board’s expectations” sent Chemring to announcing that it was proposing to €490m in a previous forecast. The an eight-year high. For the full year sell $500m of its senior notes due in 2026 improved outlook reflected “a stronger ending October 31, underlying profit in a private offering. Proceeds from the than anticipated performance in before tax rose 31 per cent to £51.7m at sale would be used “for general corporate November and December in catalysis and the defence contractor. purposes”. Norwegian Cruise, which is recycling” units. Panmure analyst Sanjay Jha upgraded down almost 60 per cent this year, said Spanish pharma group Reig Jofre the Hampshire group from “hold” to earlier this month that it would extend soared after striking a deal with Johnson “buy” with a target price of £3.02 a share. the suspension of all its voyages until late & Johnson to produce the US company’s “With growth in the US and UK defence February. Covid-19 vaccine candidate. budgets now approved, we believe the Drug group Anchiano Therapeutics Reig Jofre would be responsible for the investment in Countermeasures [radio skyrocketed on confirmation of its merger formulation, filling and packaging of the frequency and infrared division] should with Chemomab. The deal would create a drug, which would then be distributed by deliver appropriate returns,” said Mr Jha. company focused on advancing Janssen, a Belgian subsidiary of J&J. “This, in combination with the Chemomab’s lead product, CM-101 — a The Barcelona group said in a third- structural growth in cyber and drug in phase 2 clinical trials aimed at quarter statement last month that it had biological security spend, should treating inflammatory-fibrotic diseases the capacity “to produce up to 50m vials enable Chemring to generate double- affecting multiple organs such as the per year” of a Covid-19 vaccine. digit earnings per share growth over the liver, skin and lungs. Ray Douglas Ray Douglas financial year 21-22 period.” Ray Douglas
DECEMBER 16 2020 Section:Markets Time: 15/12/2020 - 18:58 User: alistair.fraser Page Name: MARKETS2, Part,Page,Edition: EUR, 10, 1 Wednesday 16 December 2020 ★ FINANCIAL TIMES 11
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 $ -0.28% -0.17% -0.69% -0.331% -0.439% -0.59% 0.64% 0.48% 0.61% 0.27% 0.50% 0.165% 0.601% 0.79% Stock Market movements over last 30 days, with the FTSE All-World in the same currency as a comparison AMERICAS EUROPE ASIA Nov 16 - - Index All World Nov 16 - Dec 15 Index All World Nov 16 - Dec 15 Index All World Nov 16 - Dec 15 Index All World Nov 16 - Dec 15 Index All World Nov 16 - Dec 15 Index All World S&P 500 New York S&P/TSX COMP Toronto FTSE 100 London Xetra Dax Frankfurt Nikkei 225 Tokyo Kospi Seoul 26,687.84 2,756.82 3,670.91 17,483.66 6,513.32 13,362.87 3,626.91 6,421.29 13,138.61 16,889.81 25,385.87 2,543.03 Day 0.64% Month 2.33% Year 15.77% Day 0.55% Month 4.84% Year 2.83% Day -0.28% Month 3.25% Year -11.31% Day 1.06% Month 2.19% Year 0.60% Day -0.17% Month 5.13% Year 11.09% Day -0.19% Month 10.54% Year 28.98%
Nasdaq Composite New York IPC Mexico City FTSE Eurofirst 300 Europe Ibex 35 Madrid Hang Seng Hong Kong FTSE Straits Times Singapore 12,499.42 43,870.32 2,856.72 1,517.26 8,152.40 1,505.45 26,381.67 11,829.29 40,791.81 7,986.20 26,207.29 2,748.00 Day 0.48% Month 5.62% Year 43.04% Day 0.69% Month 7.53% Year -0.89% Day 0.27% Month 1.95% Year -5.53% Day 0.14% Month 4.74% Year -14.76% Day -0.69% Month 0.20% Year -5.34% Day -0.05% Month 5.40% Year -11.09%
Dow Jones Industrial New York Bovespa São Paulo CAC 40 Paris FTSE MIB Milan Shanghai Composite Shanghai BSE Sensex Mumbai 116,303.41 46,263.17 21,935.05 30,042.52 5,530.31 5,471.48 3,367.23 29,479.81 106,429.92 21,317.01 3,346.97 43,443.00 Day 0.61% Month 1.85% Year 6.72% Day 1.48% Month 11.11% Year 3.36% Day 0.04% Month 2.79% Year -6.57% Day 0.81% Month 5.05% Year -5.87% Day -0.06% Month 1.73% Year 13.46% Day 0.02% Month 6.02% Year 12.81%
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 52989.02 53034.13 Cyprus CSE M&P Gen 68.46 68.68 Italy FTSE Italia All-Share 23863.51 23701.87 Philippines Manila Comp 7227.73 7281.35 Taiwan Weighted Pr 14068.52 14211.05 Cross-Border DJ Global Titans ($) 427.19 426.85 Australia All Ordinaries 6866.70 6900.30 Czech Republic PX 987.38 981.78 FTSE Italia Mid Cap 37555.03 37415.14 Poland Wig 55614.04 55150.21 Thailand Bangkok SET 1477.21 1476.13 Euro Stoxx 50 (Eur) 3521.50 3503.96 S&P/ASX 200 6631.30 6660.20 Denmark OMXC Copenahgen 20 1405.04 1398.38 FTSE MIB 21935.05 21759.73 Portugal PSI 20 4775.92 4780.03 Turkey BIST 100 1395.40 1388.55 Euronext 100 ID 1098.21 1096.26 S&P/ASX 200 Res 5010.50 5116.30 Egypt EGX 30 11057.62 11047.97 Japan 2nd Section 6756.34 6717.67 PSI General 3582.50 3587.14 UAE Abu Dhabi General Index 5132.87 5154.08 FTSE 4Good Global ($) 9062.29 9001.35 Austria ATX 2697.87 2657.92 Estonia OMX Tallinn 1309.35 1305.83 Nikkei 225 26687.84 26732.44 Romania BET Index 9575.82 9573.01 UK FT 30 2529.10 2521.40 FTSE All World ($) 416.61 414.54 Belgium BEL 20 3701.71 3673.30 Finland OMX Helsinki General 10801.06 10712.69 S&P Topix 150 1500.03 1507.97 Russia Micex Index 3248.11 3254.83 FTSE 100 6513.32 6531.83 FTSE E300 1517.26 1513.23 BEL Mid 8240.08 8215.88 France CAC 40 5530.31 5527.84 Topix 1782.05 1790.52 RTX 1390.46 1398.12 FTSE 4Good UK 6082.79 6093.96 FTSE Eurotop 100 2857.72 2850.77 Brazil IBovespa 116303.41 114611.12 SBF 120 4375.23 4371.71 Jordan Amman SE 1615.28 1608.98 Saudi-Arabia TADAWUL All Share Index 8659.37 8660.31 FTSE All Share 3673.28 3678.41 FTSE Global 100 ($) 2414.59 2404.31 Canada S&P/TSX 60 1040.77 1035.91 Germany M-DAX 29743.89 29727.59 Kenya NSE 20 1782.06 1782.06 Singapore FTSE Straits Times 2856.72 2858.14 FTSE techMARK 100 6144.22 6147.41 FTSE Gold Min ($) 2263.47 2314.94 S&P/TSX Comp 17483.66 17387.40 TecDAX 3112.54 3111.00 Kuwait KSX Market Index 6633.44 6603.51 Slovakia SAX 352.06 347.95 USA DJ Composite 9987.37 9916.33 FTSE Latibex Top (Eur) 4440.00 4432.20 S&P/TSX Div Met & Min 670.33 680.08 XETRA Dax 13362.87 13223.16 Latvia OMX Riga 1122.32 1120.91 Slovenia SBI TOP - - DJ Industrial 30042.52 29861.55 FTSE Multinationals ($) 2626.73 2625.23 Chile S&P/CLX IGPA Gen 20365.91 20334.41 Greece Athens Gen 787.32 788.02 Lithuania OMX Vilnius 795.27 790.45 South Africa FTSE/JSE All Share 59478.26 59508.80 DJ Transport 12442.40 12382.97 FTSE World ($) 740.59 736.50 China FTSE A200 13119.61 13115.00 FTSE/ASE 20 1883.79 1885.61 Luxembourg LuxX 1337.28 1307.12 FTSE/JSE Res 20 56679.86 56701.94 DJ Utilities 866.51 852.81 FTSEurofirst 100 (Eur) 3901.28 3885.75 FTSE B35 9000.71 8988.96 Hong Kong Hang Seng 26207.29 26389.52 Malaysia FTSE Bursa KLCI 1674.02 1662.74 FTSE/JSE Top 40 54466.51 54520.69 Nasdaq 100 12498.08 12462.21 FTSEurofirst 80 (Eur) 4820.05 4795.07 Shanghai A 3529.53 3531.51 HS China Enterprise 10399.56 10443.12 Mexico IPC 43870.32 43569.84 South Korea Kospi 2756.82 2762.20 Nasdaq Cmp 12499.42 12440.04 MSCI ACWI Fr ($) 628.84 629.83 Shanghai B 235.70 235.81 HSCC Red Chip 3665.65 3703.79 Morocco MASI 11341.32 11366.94 Kospi 200 370.88 371.56 NYSE Comp 14327.84 14355.29 MSCI All World ($) 2619.43 2621.89 Shanghai Comp 3367.23 3369.12 Hungary Bux 41894.09 41967.89 Netherlands AEX 617.34 612.88 Spain IBEX 35 8152.40 8140.80 S&P 500 3670.88 3647.49 MSCI Europe (Eur) 1594.61 1591.57 Shenzhen A 2361.26 2352.12 India BSE Sensex 46263.17 46253.46 AEX All Share 893.48 887.14 Sri Lanka CSE All Share 6631.89 6656.64 Wilshire 5000 38601.23 38481.00 MSCI Pacific ($) 3044.54 3035.66 Shenzhen B 1048.85 1043.09 Nifty 500 11223.90 11215.25 New Zealand NZX 50 12767.17 12835.12 Sweden OMX Stockholm 30 1889.84 1890.65 Venezuela IBC 1288431.25 1279129.75 S&P Euro (Eur) 1635.01 1626.29 Colombia COLCAP 1368.49 1383.59 Indonesia Jakarta Comp 6010.13 6012.52 Nigeria SE All Share 34843.44 34250.74 OMX Stockholm AS 759.76 759.73 Vietnam VNI 1055.27 1064.09 S&P Europe 350 (Eur) 1565.95 1560.77 Croatia CROBEX 2013.05 2011.29 Ireland ISEQ Overall 7398.20 7396.38 Norway Oslo All Share 1017.37 1006.88 Switzerland SMI Index 10341.18 10373.03 S&P Global 1200 ($) 2907.42 2894.63 Israel Tel Aviv 125 1550.21 1536.42 Pakistan KSE 100 43250.84 43266.22 Stoxx 50 (Eur) 3072.61 3074.64 (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 Dec 15 %Chg %Chg Dec 15 %Chg %Chg Dec 15 %Chg %Chg Dec 15 %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 Apple 86.9 125.96 4.18 Astrazeneca 258.6 7505.00 -187.00 Volkswagen Ag Vzo O.n. 466.9 150.32 10.64 Softbank . 1341.1 7999.00 -89.00 Evraz 462.30 8.0 13.8 Aston Martin Lagonda Global Holdings 1628.20 1970.2 826.2 Dp Eurasia N.v. 40.00 19.0 -23.5 Industrial Metals 4813.08 7.9 27.4 Amazon.com 51.1 3138.36 -18.61 Unilever 127.4 4302.00 -61.00 Iberdrola 299.2 11.22 -0.07 Ana Holdings 747.7 2275.50 -194.00 B&m Eur Value Retail S.a. 511.40 6.6 26.1 Calisen 257.80 23.2 - Chemring 300.00 19.0 21.2 Forestry & Paper 20443.62 5.2 2.7 Advanced Micro Devices 31.5 96.19 1.41 Hsbc Holdings 117.6 402.65 -0.75 Asml Holding 290.8 382.35 6.35 Toyota Motor 379.8 7905.00 -47.00 Sainsbury (j) 228.90 5.9 -1.4 Chemring 300.00 19.0 21.2 Volution 285.00 16.3 12.2 Industrial Transportation 2488.57 4.2 2.0 Boeing 21.7 228.92 0.30 Glaxosmithkline 115.6 1358.00 -34.80 Lvmh 271.4 507.20 -2.00 Sony 349.8 9730.00 -53.00 Avast 508.00 5.7 7.0 Just 63.00 12.1 -24.1 Ncc 254.00 12.9 9.5 Industrial Engineering 14781.19 2.9 9.9 Facebook 20.1 268.82 -5.37 Rio Tinto 106.0 5603.00 61.00 Total 271.1 36.56 -0.04 M3,. 264.2 9179.00 199.00 Johnson Matthey 2508.00 5.1 -17.3 Polypipe 540.00 9.6 -1.0 Just 63.00 12.1 -24.1 Electricity 8487.15 2.9 0.9 Microsoft 19.3 212.80 -1.40 Diageo 102.3 2939.00 -55.00 Sap Se O.n. 265.3 100.68 0.75 Mitsubishi Ufj Fin,. 220.4 445.60 -4.50 Mondi 1816.00 5.0 2.6 Grafton 900.00 8.4 0.2 Petra Diamonds 2.04 11.6 -76.9 General Industrials 6674.31 2.8 4.3 Pfizer 12.8 38.49 -0.72 British American Tobacco 99.4 2838.00 -47.50 Sanofi 249.3 76.23 -1.62 Tokyo Electron 207.8 36450.00 -250.00 Burberry 1870.50 4.9 -15.0 Frasers 472.60 7.9 2.9 Foxtons 48.50 10.2 -42.8 General Retailers 2464.79 2.8 -1.7 Nvidia 11.4 529.25 -3.10 Bp 91.3 270.75 1.00 Basf Se Na O.n. 229.4 64.76 0.86 Nippon Telegraph And Telephone 193.5 2650.00 -17.00 Smith (ds) 379.00 4.7 -2.0 Victrex 2272.00 7.6 -10.6 Pharos Energy 18.24 9.2 -66.0 Chemicals 13338.73 2.3 0.1 Walt Disney (the) 11.0 169.56 0.26 Reckitt Benckiser 78.7 6408.00 -136.00 Allianz Se Na O.n. 222.3 193.84 1.86 Fast Retailing Co., 192.8 84380.00 80.00 Scottish Mortgage Investment Trust 1174.00 4.6 100.3 Ferrexpo 282.00 7.6 75.3 S & U 1995.00 9.0 -5.5 Fixed Line Telecommunication 1664.77 2.2 - Salesforce.com 9.7 219.27 -2.00 Anglo American 70.7 2449.00 44.00 Royal Dutch Shella 212.3 15.28 0.18 Recruit Hldgs Co Ltd 180.2 4100.00 -36.00 Just Eat Takeaway.com N.v. 7860.00 4.4 - Softcat 1228.00 7.4 2.5 Galliford Try Holdings 112.36 8.3 -87.3 Life Insurance 7054.01 1.6 - Melrose Industries 168.85 4.2 -30.3 Puretech Health 331.00 6.8 4.4 Puretech Health 331.00 6.8 4.4 Software & Computer Services 1860.53 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 Jd Sports Fashion 814.60 3.4 -2.0 Oxford Instruments 1974.00 6.6 27.7 Oxford Instruments 1974.00 6.6 27.7 Electronic & Electrical Equip. 9759.15 0.9 12.7 price change chng% price change chng% price change chng% price change chng% Ups Ups Ups Ups Losers Losers Losers Losers Halliburton 19.91 0.95 4.98 Chemring 300.00 29.00 10.70 Volkswagen Ag Vzo O.n. 150.32 10.64 7.62 Kawasaki Heavy Industries, 2104.00 113.00 5.68 Rolls-royce Holdings 115.30 -8.7 -50.7 Airtel Africa 73.60 -21.6 -6.6 Rps 64.80 -20.0 -62.8 Pharmaceuticals & Biotech. 15984.04 -5.6 - Wynn Resorts 112.33 4.79 4.45 Aston Martin Lagonda Global Holdings 1628.20 99.00 6.47 Arcelormittal Sa 18.65 1.26 7.27 Ihi 2036.00 89.00 4.57 Astrazeneca 7505.00 -7.7 -2.0 Capita 43.00 -12.6 -74.5 Mccoll's Retail 26.00 -17.2 -31.6 Aerospace & Defense 3686.02 -2.6 - Boston Scientific 34.87 1.42 4.25 Polypipe 540.00 31.00 6.09 Thyssenkrupp Ag O.n. 6.98 0.44 6.79 Unitika 414.00 15.00 3.76 Crh 2969.00 -4.0 -4.2 Rank 136.00 -12.3 -51.4 Rm 200.00 -16.3 -28.1 Construction & Materials 6672.11 -2.4 -5.2 Skyworks Solutions 144.78 5.52 3.96 Petrofac 172.90 8.00 4.85 Volkswagen Ag St O.n. 163.40 8.90 5.76 Mitsubishi Motors 208.00 7.00 3.48 Polymetal Int 1637.50 -3.7 37.4 Carnival 1360.50 -9.5 -62.7 Photo-me Int 51.50 -12.6 -46.7 Oil & Gas Producers 4753.38 -1.6 - Western Digital 53.07 1.93 3.76 Grafton 900.00 41.50 4.83 Porsche Autom.hldg Vzo 57.00 2.98 5.52 Sumitomo Heavy Industries, 2469.00 76.00 3.18 Natwest 161.30 -3.4 -34.0 Bmo Commercial Property Trust 75.50 -9.0 -34.9 Superdry 240.20 -12.1 -52.7 Tobacco 29986.62 -1.3 - Glaxosmithkline 1358.00 -3.3 -23.6 Tui Ag 414.00 -8.4 -58.2 Senior 79.75 -11.4 -57.1 Mobile Telecommunications 2956.67 -1.3 - Downs Downs Downs Downs Informa 545.60 -3.3 -37.1 Plus500 Ltd 1386.50 -7.6 59.6 Gulf Marine Services 6.30 -11.1 -14.3 Health Care Equip.& Services 6545.20 -1.0 -21.5 Apartment Investment And Management 5.08 -35.26 -87.41 Airtel Africa 73.60 -18.60 -20.17 Swedbank Ab Ser A 14.56 -0.75 -4.87 Ana Holdings 2275.50 -194.00 -7.86 Anglo American 2449.00 -3.3 11.2 Shaftesbury 534.50 -7.0 -41.5 Allied Minds 32.55 -10.2 -35.7 Household Goods 16938.17 -0.8 -5.7 Norwegian Cruise Line Holdings Ltd 24.73 -0.69 -2.70 Capita 43.00 -1.91 -4.25 Hennes & Mauritz Ab, H & M Ser. B 17.44 -0.52 -2.90 Ricoh , 709.00 -32.00 -4.32 Hikma Pharmaceuticals 2446.00 -3.1 23.2 Aberforth Smaller Companies Trust 1156.00 -6.9 -24.7 Palace Capital 199.50 -9.3 -38.8 Gas Water & Multiutilities 4771.93 -0.8 -11.5 Newell Brands 19.86 -0.47 -2.29 Serco 114.40 -4.60 -3.87 Danske Bank A/s 13.20 -0.37 -2.76 Kubota 2190.50 -72.50 -3.20 Intermediate Capital 1609.00 -2.8 -1.9 Centrica 41.51 -6.6 -54.0 Hyve 108.70 -9.1 -62.3 Real Estate Investment Trusts 2696.91 -0.6 - Royal Caribbean 72.52 -1.54 -2.08 Indivior 102.30 -3.80 -3.58 J.martins,sgps 14.18 -0.40 -2.74 Jfe Holdings,. 1022.00 -33.00 -3.13 Pearson 660.20 -2.7 1.6 Icg Enterprise Trust 886.00 -6.5 -12.7 Elementis 115.50 -9.0 -37.4 Media 7817.97 -0.5 -14.3 Alliance Data Systems 70.62 -1.45 -2.01 St.modwen Properties 365.00 -13.50 -3.57 Inditex 26.77 -0.68 -2.48 Tokyo Gas Co., 2265.50 -69.50 -2.98 Aveva 3164.00 -2.6 -16.3 Workspace 739.50 -6.3 -38.3 Restaurant 64.00 -8.6 -61.5 Personal Goods 36605.28 -0.5 -3.7 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 Dec 15 Currency Mid Change Mid Change Mid Change Dec 15 Currency Mid Change Mid Change Mid Change Dec 15 Currency Mid Change Mid Change Mid Change Dec 15 Currency Mid Change Mid Change Mid Change Argentina Argentine Peso 82.5350 0.0813 100.3002 0.3248 110.5923 0.7931 Indonesia Indonesian Rupiah 14120.0000 25.0000 17159.2516 69.0031 18920.0081 150.4291 Poland Polish Zloty 3.6517 -0.0105 4.4376 -0.0027 4.8930 0.0163 ..Three Month 0.7464 -0.0046 0.9068 -0.0036 - - Australia Australian Dollar 1.3264 -0.0005 1.6118 0.0030 1.7772 0.0103 Israel Israeli Shekel 3.2550 -0.0058 3.9556 0.0019 4.3615 0.0193 Romania Romanian Leu 4.0065 -0.0085 4.8688 0.0007 5.3684 0.0219 ..One Year 0.7466 -0.0047 0.9063 -0.0036 - - Bahrain Bahrainin Dinar 0.3771 -0.0001 0.4582 0.0010 0.5052 0.0031 Japan Japanese Yen 103.7350 -0.3450 126.0633 -0.1340 138.9991 0.4013 Russia Russian Ruble 73.6000 0.1950 89.4420 0.4382 98.6199 0.8703 United States United States Dollar - - 1.2152 0.0027 1.3399 0.0083 Bolivia Bolivian Boliviano 6.9100 - 8.3973 0.0189 9.2590 0.0573 ..One Month 103.7349 -0.3452 126.0634 -0.1339 138.9990 0.4012 Saudi Arabia Saudi Riyal 3.7513 -0.0001 4.5587 0.0102 5.0265 0.0310 ..One Month - - 1.2151 -0.1164 1.3400 0.0083 Brazil Brazilian Real 5.1022 -0.0129 6.2004 -0.0017 6.8367 0.0252 ..Three Month 103.7349 -0.3453 126.0635 -0.1338 138.9990 0.4011 Singapore Singapore Dollar 1.3333 -0.0022 1.6202 0.0010 1.7865 0.0081 ..Three Month - - 1.2150 -0.1164 1.3401 0.0083 Canada Canadian Dollar 1.2735 -0.0039 1.5476 -0.0012 1.7064 0.0054 ..One Year 103.7345 -0.3460 126.0638 -0.1331 138.9990 0.4009 South Africa South African Rand 14.8963 -0.1350 18.1026 -0.1229 19.9601 -0.0562 ..One Year - - 1.2142 -0.1164 1.3402 0.0083 Chile Chilean Peso 736.0450 2.8600 894.4743 5.4850 986.2589 9.9156 Kenya Kenyan Shilling 111.6000 - 135.6212 0.3059 149.5377 0.9260 South Korea South Korean Won 1093.3500 1.6000 1328.6872 4.9366 1465.0276 11.2024 Venezuela Venezuelan Bolivar Fuerte ------China Chinese Yuan 6.5451 0.0077 7.9539 0.0273 8.7701 0.0646 Kuwait Kuwaiti Dinar 0.3055 0.0001 0.3712 0.0009 0.4093 0.0026 Sweden Swedish Krona 8.3839 -0.0319 10.1885 -0.0157 11.2340 0.0271 Vietnam Vietnamese Dong 23126.5000 -0.5000 28104.4135 62.8110 30988.2462 191.2507 Colombia Colombian Peso 3418.8500 -12.6050 4154.7374 -5.9137 4581.0682 11.5823 Malaysia Malaysian Ringgit 4.0545 -0.0015 4.9272 0.0093 5.4328 0.0316 Switzerland Swiss Franc 0.8863 -0.0023 1.0771 -0.0004 1.1877 0.0043 European Union Euro 0.8229 -0.0019 - - 1.1026 0.0044 Costa Rica Costa Rican Colon 606.7350 0.3700 737.3311 2.1115 812.9908 5.5269 Mexico Mexican Peso 20.1130 -0.0487 24.4422 -0.0040 26.9503 0.1020 Taiwan New Taiwan Dollar 28.1440 -0.0060 34.2018 0.0699 37.7114 0.2255 ..One Month 0.8227 -0.0019 - - 1.1026 0.0044 Czech Republic Czech Koruna 21.6688 -0.0524 26.3329 -0.0042 29.0350 0.1099 New Zealand New Zealand Dollar 1.4134 0.0017 1.7177 0.0059 1.8939 0.0140 Thailand Thai Baht 30.0475 -0.0225 36.5150 0.0551 40.2620 0.2193 ..Three Month 0.8226 -0.0019 - - 1.1025 0.0043 Denmark Danish Krone 6.1238 -0.0139 7.4419 0.0000 8.2055 0.0324 Nigeria Nigerian Naira 388.5000 - 472.1223 1.0647 520.5681 3.2234 Tunisia Tunisian Dinar 2.7063 -0.0034 3.2888 0.0033 3.6262 0.0179 ..One Year 0.8218 -0.0019 - - 1.1020 0.0043 Egypt Egyptian Pound 15.7106 0.0008 19.0922 0.0440 21.0513 0.1314 Norway Norwegian Krone 8.7356 -0.0069 10.6159 0.0156 11.7052 0.0633 Turkey Turkish Lira 7.8445 -0.0428 9.5330 -0.0303 10.5112 0.0082 Hong Kong Hong Kong Dollar 7.7516 -0.0008 9.4201 0.0203 10.3867 0.0633 Pakistan Pakistani Rupee 160.5500 0.4250 195.1074 0.9553 215.1280 1.8981 United Arab Emirates UAE Dirham 3.6732 - 4.4638 0.0101 4.9218 0.0305 Hungary Hungarian Forint 292.5037 0.6809 355.4633 1.6273 391.9384 3.3337 Peru Peruvian Nuevo Sol 3.5944 0.0055 4.3681 0.0165 4.8163 0.0371 United Kingdom Pound Sterling 0.7463 -0.0047 0.9069 -0.0036 - - India Indian Rupee 73.6425 0.0800 89.4936 0.2988 98.6768 0.7176 Philippines Philippine Peso 48.0600 0.0125 58.4046 0.1469 64.3977 0.4154 ..One Month 0.7464 -0.0046 0.9069 -0.0036 - - 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 Dec 15 Dec 14 Dec 11 Dec 10 Dec 09 Yr Ago High Low Year to date percentage changes Closing Day's Closing Day's £ Strlg Day's Euro £ Strlg £ Strlg Year Div P/E X/D Total FT 30 2529.10 2521.40 2490.10 2532.10 2548.50 0.00 3314.70 1337.80 Leisure Goods 55.33 Pharmace & Biotech -4.16 FTSE 100 Index -13.20 FTSE 100 Price Change FTSE 100 Price Change Dec 15 chge% Index Dec 14 Dec 11 ago yield% Cover ratio adj Return FT 30 Div Yield - - - - - 0.00 3.93 2.74 Industrial Metals & 23.87 Health Care -6.07 Media -13.23 3I Group PLC 1137 0.50 Kingfisher PLC 270.40 0.30 FTSE 100 (101) 6513.32 -0.28 5612.47 6531.83 6546.75 7353.44 3.67 1.52 17.97 199.48 6216.66 P/E Ratio net - - - - - 0.00 19.44 14.26 Mining 16.06 General Retailers -6.17 Food Producers -13.63 Admiral Group PLC 2852 -13.00 Land Securities Group PLC 710.60 12.60 FTSE 250 (250) 19852.39 0.45 17106.61 19764.02 19622.15 21507.79 2.38 1.66 25.27 336.93 15750.36 FT 30 since compilation: 4198.4 high: 19/07/1999; low49.4 18/02/1900Base Date: 1/7/35 Basic Materials 14.03 Construct & Material -6.29 Life Insurance -14.78 Anglo American PLC 2449 44.00 Legal & General Group PLC 253.80 4.90 FTSE 250 ex Inv Co (181) 20310.89 0.73 17501.70 20164.66 20006.01 22935.12 2.38 1.48 28.31 300.87 16435.99 FT 30 hourly changes Tech Hardware & Eq 13.78 Household Goods & Ho -6.52 Software & Comp Serv -14.83 Antofagasta PLC 1425 9.00 Lloyds Banking Group PLC 36.65 0.92 FTSE 350 (351) 3701.78 -0.16 3189.78 3707.60 3710.00 4148.97 3.44 1.53 18.92 104.27 7042.29 8 9 10 11 12 13 14 15 16 High Low Electronic & Elec Eq 11.22 Beverages -6.91 Financials -15.89 Ashtead Group PLC 3341 -7.00 London Stock Exchange Group PLC 8842 132.00 FTSE 350 ex Investment Trusts (281) 3607.78 -0.16 3108.79 3613.40 3617.32 4096.83 3.52 1.41 20.07 103.22 3541.76 2521.4 2530.7 2527 2164.9 2399.1 2395.8 2394.3 2414 2426.7 2439.2 2366.1 Equity Invest Instr 10.53 Industrial Transport -6.95 Real Est Invest & Se -16.10 Associated British Foods PLC 2280 -4.00 M&G PLC 190.55 1.15 FTSE 350 Higher Yield (146) 2934.15 0.26 2528.33 2926.45 2926.29 3571.19 4.94 1.44 14.11 115.37 6131.86 FT30 constituents and recent additions/deletions can be found at www.ft.com/ft30 Industrial Eng 6.23 Consumer Goods -7.91 Telecommunications -16.58 Astrazeneca PLC 7505 -187.00 Melrose Industries PLC 168.85 5.85 FTSE 350 Lower Yield (205) 4242.94 -0.57 3656.10 4267.07 4272.74 4400.10 1.98 1.78 28.41 74.58 5020.02 Chemicals 2.25 Utilities -9.15 Real Est Invest & Tr -20.87 Auto Trader Group PLC 567.40 -6.60 Mondi PLC 1816 31.00 FTSE SmallCap (258) 6002.48 0.37 5172.28 5980.12 5966.05 5725.28 3.06 -1.30 -25.09 129.35 9538.63 Support Services 1.85 Financial Services -9.93 Health Care Eq & Srv -20.99 Avast PLC 508.00 4.00 Morrison (Wm) Supermarkets PLC 178.95 -1.70 FTSE SmallCap ex Inv Co (142) 4716.13 0.87 4063.84 4675.25 4663.34 4689.47 3.02 -1.37 -24.27 75.53 7837.77 FX: EFFECTIVE INDICES FTSE SmallCap Index 0.26 FTSE 250 Index -10.33 Travel & Leisure -21.12 Aveva Group PLC 3164 -6.00 National Grid PLC 867.40 -13.40 FTSE All-Share (609) 3673.28 -0.14 3165.23 3678.41 3680.43 4095.03 3.43 1.45 20.08 102.55 7059.38 Nonlife Insurance -1.03 Mobile Telecomms -10.46 Aerospace & Defense -25.55 Aviva PLC 324.60 4.30 Natwest Group PLC 161.30 3.45 FTSE All-Share ex Inv Co (423) 3544.42 -0.14 3054.19 3549.27 3552.89 4015.21 3.51 1.37 20.77 100.50 3534.05 Dec 14 Dec 11 Mnth Ago Dec 15 Dec 14 Mnth Ago Food & Drug Retailer -1.11 Tobacco -10.89 Fixed Line Telecomms -29.95 B&M European Value Retail S.A. 511.40 0.40 Next PLC 6754 8.00 FTSE All-Share ex Multinationals (539) 1167.26 0.58 1011.61 1160.58 1144.87 1267.70 2.81 1.42 25.04 23.34 2335.28 Australia --- Sweden --- Forestry & Paper -1.83 NON FINANCIALS Index -10.99 Oil Equipment & Serv -32.89 Bae Systems PLC 502.00 -2.00 Ocado Group PLC 2232 -43.00 FTSE Fledgling (92) 10158.09 0.20 8753.13 10138.14 10093.10 9583.09 2.59 0.46 84.46 210.25 20887.31 Canada --- Switzerland --- Electricity -2.04 Gas Water & Multi -11.28 Automobiles & Parts -33.40 Barclays PLC 144.70 2.34 Pearson PLC 660.20 -2.00 FTSE Fledgling ex Inv Co (43) 12287.95 0.24 10588.41 12258.50 12147.06 11378.84 2.62 4.32 8.85 177.70 24688.21 Denmark --- UK 77.68 77.10 78.04 Personal Goods -2.10 FTSE All{HY-}Share Index -12.30 Banks -33.91 Barratt Developments PLC 621.20 15.60 Pennon Group PLC 943.20 -4.00 FTSE All-Small (350) 4163.88 0.36 3587.97 4148.77 4138.53 3969.43 3.03 -1.22 -27.01 89.59 8488.84 Japan --- USA --- Industrials -2.63 Consumer Services -12.78 Oil & Gas -39.82 Berkeley Group Holdings (The) PLC 4405 80.00 Persimmon PLC 2654 70.00 FTSE All-Small ex Inv Co (185) 3527.74 0.85 3039.82 3498.03 3488.21 3496.80 3.00 -1.17 -28.46 56.25 7426.30 New Zealand --- Euro --- Technology -12.92 Oil & Gas Producers -39.93 Bhp Group PLC 1952.2 11.80 Phoenix Group Holdings PLC 712.40 5.00 FTSE AIM All-Share (712) 1070.35 0.25 922.31 1067.66 1061.18 917.71 0.87 0.37 307.64 7.27 1228.89 Norway --- BP PLC 270.75 1.00 Polymetal International PLC 1637.5 22.50 FTSE Sector Indices Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. British American Tobacco PLC 2838 -47.50 Prudential PLC 1325 12.00 Non Financials (303) 4398.17 -0.39 3789.86 4415.33 4435.12 4853.28 3.52 1.37 20.74 135.32 7428.05 Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk British Land Company PLC 495.00 12.80 Reckitt Benckiser Group PLC 6408 -136.00 Technology (19) 971.42 -0.92 952.70 980.41 971.40 1025.75 1.13 0.37 238.13 9.72 1024.83 Bt Group PLC 137.25 2.95 Relx PLC 1770.5 -24.50
Software and Computer Services (17) 966.73 -0.94 948.10 975.95 966.55 1022.82 1.14 0.34 256.03 9.88 1021.05 FTSE GLOBAL EQUITY INDEX SERIES Bunzl PLC 2476 -3.00 Rentokil Initial PLC 504.00 3.20 Technology Hardware and Equipment (2) 1083.94 0.40 1063.04 1079.59 1092.24 1045.05 0.97 1.86 55.16 0.00 1120.87 Burberry Group PLC 1870.5 44.00 Rightmove PLC 630.80 -22.20 Dec 15 No of US $ Day Mth YTD Total YTD Gr Div Dec 15 No of US $ Day Mth YTD Total YTD Gr Div Telecommunications (8) 660.79 -0.45 648.05 663.76 659.31 787.59 6.88 0.60 24.02 15.28 762.73 Coca-Cola Hbc AG 2348 16.00 Rio Tinto PLC 5603 61.00 Regions & countries stocks indices % % % retn % Yield Sectors stocks indices % % % retn % Yield Telecommunications Equipment (2) 2556.54 -0.97 2507.25 2581.64 2584.19 2057.86 1.42 3.38 20.77 36.43 2719.49 Compass Group PLC 1436 -13.00 Rolls-Royce Holdings PLC 115.30 -3.45 Telecommunications Service Providers (6) 643.96 -0.43 631.55 646.73 642.21 776.91 7.09 0.58 24.16 15.10 744.37 FTSE Global All Cap 8965 707.88 -0.1 4.3 11.2 1090.22 13.5 1.9 Oil Equipment & Services 24 197.17 -2.4 -2.4 -26.4 333.32 -22.3 5.6 Crh PLC 2969 -12.00 Royal Dutch Shell PLC 1314.4 5.00 Health Care (15) 1200.24 -2.27 1177.10 1228.17 1270.84 1300.48 3.69 1.12 24.19 44.07 1333.13 FTSE Global All Cap 8965 707.88 -0.1 4.3 11.2 1090.22 13.5 1.9 Basic Materials 354 590.88 -0.5 -0.5 15.0 1002.93 18.5 2.7 Croda International PLC 6276 -128.00 Royal Dutch Shell PLC 1366.4 6.20 Health Care Providers (4) 404.67 2.16 396.87 396.13 396.97 766.98 2.12 0.38 124.87 3.93 418.38 FTSE Global Large Cap 1734 633.43 -0.2 3.5 11.6 1004.75 14.0 1.9 Chemicals 162 843.52 -0.3 -0.3 12.4 1417.55 15.5 2.4 Dcc PLC 5416 -82.00 Rsa Insurance Group PLC 676.60 0.60 Medical Equipment and Services (2) 1114.71 -1.71 1093.22 1134.12 1125.90 1243.62 2.01 1.09 45.42 22.38 1184.65 FTSE Global Mid Cap 2226 895.84 0.0 5.4 8.0 1298.16 10.0 1.9 Forestry & Paper 21 301.80 0.6 0.6 8.5 574.31 12.1 2.6 Diageo PLC 2939 -55.00 Sage Group PLC 575.20 -10.80 Pharmaceuticals and Biotechnology (9) 1248.81 -2.41 1224.73 1279.65 1329.82 1329.78 3.87 1.13 22.84 48.45 1396.10 FTSE Global Small Cap 5005 972.68 0.0 7.8 12.5 1354.91 14.3 1.6 Industrial Metals & Mining 92 452.42 -1.1 -1.1 19.6 774.63 23.6 3.1 Evraz PLC 462.30 7.00 Sainsbury (J) PLC 228.90 2.90 FTSE All-World 3960 414.54 -0.1 3.8 11.1 675.68 13.4 1.9 Mining 79 855.17 -0.6 -0.6 17.3 1484.17 21.5 3.1 Financials (250) 820.07 0.61 804.26 815.09 805.64 935.67 3.17 2.14 14.73 15.93 905.63 Experian PLC 2707 -44.00 Schroders PLC 3256 46.00 FTSE World 2564 736.50 -0.1 4.1 10.9 1611.27 13.2 1.9 Industrials 745 510.30 -0.2 -0.2 13.7 785.94 15.7 1.6 Banks (11) 556.56 0.88 545.83 551.71 540.40 814.04 3.69 2.22 12.23 0.34 607.89 Ferguson PLC 8688 -68.00 Scottish Mortgage Investment Trust PLC 1174 8.00 FTSE Global All Cap ex UNITED KINGDOM In 8675 748.49 -0.2 4.2 12.5 1132.04 14.8 1.8 Construction & Materials 147 602.71 0.0 0.0 8.7 974.39 10.9 1.8 Finance and Credit Services (8) 1077.44 1.34 1056.67 1063.16 1058.85 1219.86 3.29 4.32 7.05 12.24 1151.33 Flutter Entertainment PLC 15135 70.00 Segro PLC 908.00 -0.80 FTSE Global All Cap ex USA 7216 549.75 0.1 5.6 6.0 923.83 8.6 2.4 Aerospace & Defense 36 738.89 -0.7 -0.7 -17.5 1121.03 -16.2 2.0 Investment Banking and Brokerage Services (31) 1056.93 1.01 1036.55 1046.33 1037.22 1117.19 3.31 0.94 32.28 34.16 1173.35 Fresnillo PLC 1140 22.50 Severn Trent PLC 2308 -2.00 FTSE Global All Cap ex JAPAN 7570 730.12 -0.2 4.2 11.4 1135.05 13.6 1.9 General Industrials 71 247.01 -0.5 -0.5 8.4 417.20 11.1 2.3 Closed End Investments (186) 1235.05 -0.18 1211.24 1237.30 1229.87 1077.79 2.28 3.20 13.70 27.26 1334.39 Glaxosmithkline PLC 1358 -34.80 Smith & Nephew PLC 1499 -29.00 FTSE Global All Cap ex Eurozone 8325 745.12 -0.2 4.1 12.0 1123.92 14.2 1.9 Electronic & Electrical Equipment 138 640.08 0.2 0.2 25.7 894.23 27.8 1.4 Life Insurance (7) 795.78 1.35 780.44 785.21 776.18 891.57 3.72 1.93 13.92 28.54 909.44 Glencore PLC 240.40 4.45 Smith (Ds) PLC 379.00 6.80 FTSE Developed 2135 673.78 -0.1 3.8 11.3 1046.31 13.5 1.9 Industrial Engineering 148 996.00 -0.1 -0.1 20.1 1525.99 22.4 1.5 Nonlife Insurance (7) 981.30 -0.10 962.39 982.25 982.41 989.97 3.00 1.86 17.88 28.74 1087.49 Gvc Holdings PLC 1039.5 6.50 Smiths Group PLC 1571.5 -16.50 FTSE Developed All Cap 5621 706.20 -0.1 4.2 11.4 1081.20 13.6 1.9 Industrial Transportation 122 898.81 -1.1 -1.1 18.7 1393.29 20.8 1.7 Real Estate (56) 845.36 0.47 829.06 841.44 835.88 1025.99 3.01 -1.88 -17.71 20.88 937.29 Halma PLC 2370 7.00 Smurfit Kappa Group PLC 3480 34.00 FTSE Developed Large Cap 832 630.57 -0.1 3.5 11.8 996.53 14.2 1.9 Support Services 83 621.94 0.2 0.2 23.2 903.65 24.9 1.1 Real Estate Investment and Services (17) 860.79 0.02 844.19 860.60 856.32 994.58 1.80 2.17 25.66 10.79 914.09 Hargreaves Lansdown PLC 1448.5 4.00 Spirax-Sarco Engineering PLC 11375 -125.00 FTSE Developed Europe Large Cap 225 383.84 0.4 4.3 0.0 717.26 2.7 2.6 Consumer Goods 530 591.60 0.5 0.5 15.9 954.33 18.5 2.1 Real Estate Investment Trusts (39) 842.19 0.53 825.95 837.72 831.98 1031.22 3.19 -2.22 -14.12 22.61 940.80 Hikma Pharmaceuticals PLC 2446 -70.00 Sse PLC 1444.5 - FTSE Developed Europe Mid Cap 344 672.92 1.0 5.8 6.4 1100.39 8.5 2.1 Automobiles & Parts 128 580.31 1.9 1.9 52.4 912.01 55.3 1.5 Consumer Discretionary (92) 887.47 0.45 870.36 883.53 873.81 1024.64 2.26 1.42 31.28 10.74 964.53 Homeserve PLC 1103 13.00 St. James's Place PLC 1109 28.00 FTSE Dev Europe Small Cap 691 914.96 1.1 6.8 1.9 1440.98 3.8 2.0 Beverages 67 722.58 0.1 0.1 2.0 1176.87 4.4 2.3 Automobiles and Parts (3) 404.31 3.18 396.52 391.84 381.78 566.54 0.48 14.04 14.92 0.00 425.90 HSBC Holdings PLC 402.65 -0.75 Standard Chartered PLC 479.80 5.10 FTSE North America Large Cap 224 806.19 -0.3 2.4 15.7 1176.28 17.8 1.6 Food Producers 132 698.90 -0.2 -0.2 2.5 1150.56 4.9 2.4 Consumer Services (4) 921.58 -0.65 903.81 927.64 927.82 1169.57 2.68 0.21 181.05 16.76 978.89 Imperial Brands PLC 1559.5 -4.50 Standard Life Aberdeen PLC 287.00 8.50 FTSE North America Mid Cap 411 1038.31 -0.4 4.7 9.7 1397.19 11.5 1.7 Household Goods & Home Construction 62 560.08 0.1 0.1 10.6 898.59 13.1 2.1 Household Goods and Home Construction (12) 905.77 2.50 888.31 883.68 852.65 1096.26 3.03 2.06 16.00 16.26 1044.41 Informa PLC 545.60 -8.80 Taylor Wimpey PLC 160.65 3.90 FTSE North America Small Cap 1294 1106.27 -0.3 8.3 15.9 1435.86 17.5 1.4 Leisure Goods 43 313.50 0.3 0.3 29.4 432.47 31.1 1.1 Leisure Goods (2) 1148.92 -0.89 1126.77 1159.20 1173.07 815.10 1.54 1.39 46.96 12.50 1270.24 Intercontinental Hotels Group PLC 4720 41.00 Tesco PLC 223.80 -2.50 FTSE North America 635 526.43 -0.3 2.8 14.7 784.86 16.8 1.6 Personal Goods 85 1023.23 0.4 0.4 13.5 1525.71 15.3 1.4 Personal Goods (4) 900.27 2.56 882.92 877.81 874.74 991.89 2.07 2.08 23.25 0.00 943.26 Intermediate Capital Group PLC 1609 16.00 Unilever PLC 4302 -61.00 FTSE Developed ex North America 1500 285.90 0.4 5.7 5.1 517.48 7.7 2.4 Tobacco 13 932.13 -0.4 -0.4 -6.5 2330.79 -1.2 6.6 Media (11) 876.79 -0.76 859.89 883.54 886.38 1002.15 1.81 3.04 18.15 15.65 955.53 International Consolidated Airlines Group S.A. 157.65 0.70 United Utilities Group PLC 935.80 4.00 FTSE Japan Large Cap 179 443.46 0.3 6.0 11.8 622.14 14.4 2.1 Health Care 304 668.62 -0.6 -0.6 9.5 1029.96 11.5 1.8 Retailers (22) 1006.22 0.57 986.82 1000.51 965.17 1023.94 2.17 1.39 33.16 4.47 1083.98 Intertek Group PLC 5776 -14.00 Vodafone Group PLC 130.00 -1.16 FTSE Japan Mid Cap 335 642.34 0.3 4.7 2.2 854.11 4.3 2.0 Health Care Equipment & Services 111 1340.34 -0.3 -0.3 14.3 1614.75 15.2 0.7 Travel and Leisure (34) 792.58 0.64 777.30 787.54 783.68 967.63 2.21 0.34 131.38 5.90 850.20 Jd Sports Fashion PLC 814.60 24.00 Whitbread PLC 3153 48.00 FTSE Global wi JAPAN Small Cap 881 706.92 0.5 4.6 1.6 973.82 3.8 2.1 Pharmaceuticals & Biotechnology 193 436.41 -0.7 -0.7 6.3 714.69 9.0 2.4 Consumer Staples (27) 834.89 -1.41 818.80 846.81 851.59 878.38 4.01 1.41 17.61 31.13 934.64 Johnson Matthey PLC 2508 98.00 Wpp PLC 785.80 2.00 FTSE Japan 514 183.63 0.3 5.8 9.9 288.34 12.4 2.1 Consumer Services 439 677.37 -0.1 -0.1 21.5 948.92 22.7 1.0 Beverages (6) 1062.68 -1.61 1042.19 1080.06 1083.72 1113.21 2.39 1.65 25.34 24.25 1140.01 Just Eat Takeaway.Com N.V. 7860 -88.00 FTSE Asia Pacific Large Cap ex Japan 931 847.67 -0.4 4.8 16.6 1465.72 19.3 2.2 Food & Drug Retailers 68 297.04 -0.1 -0.1 0.7 450.63 3.4 2.5 Food Producers (10) 838.86 0.16 822.69 837.54 830.83 954.77 2.59 1.80 21.47 11.64 893.44 FTSE Asia Pacific Mid Cap ex Japan 891 1001.91 0.2 8.4 15.7 1661.95 18.3 2.6 General Retailers 145 1247.08 0.0 0.0 37.8 1679.22 38.7 0.6 Tobacco (2) 550.27 -1.40 539.66 558.07 563.93 595.62 7.91 1.29 9.80 35.53 673.02 FTSE Asia Pacific Small Cap ex Japan 1846 632.48 0.4 7.3 16.5 1026.27 19.1 2.4 Media 87 455.86 -0.5 -0.5 18.6 642.62 19.8 1.0 Industrials (93) 1049.90 0.07 1029.66 1049.17 1038.63 1034.78 1.71 0.73 79.57 14.75 1121.41 UK STOCK MARKET TRADING DATA FTSE Asia Pacific Ex Japan 1822 662.51 -0.3 5.1 16.6 1216.86 19.3 2.2 Travel & Leisure 139 487.03 0.1 0.1 -6.0 697.64 -4.7 1.7 Construction and Materials (16) 973.92 0.43 955.14 969.72 961.11 1019.93 1.98 0.15 327.78 18.50 1056.49 FTSE Emerging All Cap 3344 864.73 -0.5 4.4 9.4 1421.58 12.2 2.3 Telecommunication 96 156.01 0.0 0.0 -2.7 339.63 1.5 4.5 Dec 15 Dec 14 Dec 11 Dec 10 Dec 09 Yr Ago Aerospace and Defense (9) 765.86 -0.85 751.09 772.44 764.52 1031.90 2.98 -2.01 -16.71 19.60 825.70 FTSE Emerging Large Cap 902 833.49 -0.7 3.5 10.0 1378.85 12.7 2.2 Fixed Line Telecommuniations 42 119.52 -0.5 -0.5 -11.7 292.39 -7.2 5.6 ------Electronic and Electrical Equipment (11) 1197.81 0.87 1174.72 1187.50 1177.41 1143.17 1.47 1.85 36.87 13.13 1266.40 FTSE Emerging Mid Cap 923 1019.87 0.4 9.1 4.8 1676.46 7.7 2.9 Mobile Telecommunications 54 183.52 0.6 0.6 10.0 349.07 13.7 3.2 Order Book Turnover (m) 174.66 45.33 45.33 45.33 64.27 76.34 General Industrials (8) 1159.77 1.00 1137.42 1148.27 1123.00 987.67 1.85 0.72 74.88 17.10 1249.23 FTSE Emerging Small Cap 1519 828.34 0.4 7.6 9.6 1306.43 12.4 2.5 Utilities 190 312.14 0.0 0.0 -1.8 684.43 1.5 3.3 Order Book Bargains 879970.00 1040275.00 1040275.00 1040275.00 1059366.00 892356.00 Industrial Engineering (4) 1402.64 0.23 1375.60 1399.36 1382.79 1104.51 0.60 4.28 38.97 8.86 1470.82 FTSE Emerging Europe 76 364.31 -0.5 13.8 -17.2 688.82 -12.9 5.5 Electricity 130 350.51 -0.2 -0.2 -1.6 757.73 1.8 3.3 Order Book Shares Traded (m) 1395.00 1861.00 1861.00 1861.00 2034.00 1465.00 Industrial Support Services (34) 1078.08 -0.42 1057.30 1082.63 1076.79 1043.16 1.27 2.20 35.92 12.23 1143.27 FTSE Latin America All Cap 240 801.64 -1.1 14.8 -18.6 1370.74 -16.6 2.7 Gas Water & Multiutilities 60 313.72 0.3 0.3 -2.3 709.93 0.9 3.2 Total Equity Turnover (£m) 6092.99 4911.81 4911.81 4911.81 5344.52 5778.96 Industrial Transportation (11) 1172.62 0.78 1150.01 1163.57 1148.20 967.85 2.15 2.02 23.08 11.34 1263.54 FTSE Middle East and Africa All Cap 322 645.14 0.6 4.5 -6.5 1114.86 -3.7 3.2 Financials 864 244.83 -0.1 -0.1 -7.5 444.28 -4.8 2.8 Total Mkt Bargains 1091105.00 1262569.00 1262569.00 1262569.00 1324089.00 1223456.00 Basic Materials (26) 1328.94 1.21 1303.32 1313.04 1323.01 1093.95 3.41 2.71 10.83 48.44 1538.41 FTSE Global wi UNITED KINGDOM All Cap In 290 310.27 0.7 4.5 -13.2 592.11 -10.7 3.5 Banks 270 181.13 0.0 0.0 -15.2 360.71 -12.3 3.5 Total Shares Traded (m) 6768.00 7749.00 7749.00 7749.00 10244.00 7668.00 Industrial Materials (3) 924.98 1.66 907.14 909.87 886.80 883.62 2.28 3.09 14.19 21.14 1020.30 FTSE Global wi USA All Cap 1749 911.88 -0.3 3.3 15.5 1284.11 17.5 1.5 Nonlife Insurance 74 289.95 -0.5 -0.5 -6.1 455.29 -3.8 2.2 † Excluding intra-market and overseas turnover. *UK only total at 6pm. ‡ UK plus intra-market turnover. (u) Unavaliable. Industrial Metals and Mining (12) 1441.17 1.23 1413.39 1423.61 1437.13 1174.62 3.67 2.81 9.69 57.81 1704.71 FTSE Europe All Cap 1411 458.11 0.6 5.0 0.7 823.05 3.3 2.6 Life Insurance 54 225.38 0.1 0.1 -6.6 404.36 -3.0 3.4 (c) Market closed. Precious Metals and Mining (5) 1251.64 1.43 1227.51 1233.98 1277.98 861.87 3.35 1.07 27.95 42.21 1375.99 FTSE Eurozone All Cap 640 451.44 0.6 5.7 3.8 807.94 6.2 2.1 Financial Services 209 399.14 -0.2 -0.2 7.8 587.37 9.9 1.8 Chemicals (6) 987.96 0.61 968.91 981.98 973.44 925.07 1.59 2.11 29.84 15.07 1051.66 FTSE EDHEC-Risk Efficient All-World 3960 459.94 0.0 4.2 6.3 692.49 8.5 2.1 Technology 310 501.58 0.1 0.1 39.5 643.13 40.9 0.9 Energy (13) 502.02 0.43 492.34 499.84 510.87 822.82 6.26 1.19 13.38 30.36 591.25 FTSE EDHEC-Risk Efficient Developed Europe 569 361.03 0.9 5.3 6.8 602.16 9.0 2.2 Software & Computer Services 163 819.52 -0.1 -0.1 34.8 981.15 35.6 0.5 All data provided by Morningstar unless otherwise noted. All elements listed are indicative and believed Oil. Gas and Coal (13) 502.72 0.43 493.03 500.54 511.59 823.97 6.26 1.19 13.38 30.40 592.08 Oil & Gas 128 261.23 -1.9 13.9 -28.2 487.98 -24.5 5.1 Technology Hardware & Equipment 147 405.43 0.3 0.3 45.8 554.59 48.1 1.3 accurate at the time of publication. No offer is made by Morningstar or the FT. The FT does not warrant nor Utilities (10) 955.38 -0.63 936.96 961.48 950.42 1022.57 5.10 1.14 17.17 47.06 1135.85 Oil & Gas Producers 93 245.65 -2.0 14.2 -30.4 469.01 -26.8 5.2 Alternative Energy 11 228.62 1.3 1.3 80.6 324.93 83.3 0.7 guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be Real Estate Investment & Services 160 357.07 0.6 0.6 -3.3 658.06 -0.2 2.7 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 97 442.50 -0.4 -0.4 -10.7 971.49 -7.9 3.8 For all queries e-mail [email protected] FTSE 100 6516.41 6554.61 6542.37 6535.16 6507.59 6489.26 6504.90 6495.28 6510.01 6557.82 6484.05 FTSE Global Large Cap 1734 633.43 -0.2 -0.2 11.6 1004.75 14.0 1.9 FTSE 250 19773.24 19779.09 19803.99 19812.03 19770.31 19741.00 19708.42 19684.83 19767.42 19869.91 19675.61 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/ Data provided by Morningstar | www.morningstar.co.uk FTSE SmallCap 5988.40 5991.11 5999.34 6004.45 5995.51 5994.92 5991.38 5982.81 5996.19 6011.36 5982.47 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 FTSE All-Share 3671.92 3689.37 3684.79 3681.90 3668.00 3658.82 3664.78 3659.53 3669.01 3692.46 3656.48 (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:09:33:00 Day's Low13:02:30 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:09:33:00 Day's Low13:03:00 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 Further information is available on http://www.ftse.com © FTSE International Limited. 2013. All Rights reserved. ”FTSE®” is a trade mark of the Group companies and is used by FTSE International Limited under licence. 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 Blue Planet Investment Trust Int 0.312 0.139 0.600 0.320 0.00000 0.00000 - 0.000 0.000 date price(p) Sector code Stock price(p) +/- High Low Cap (£m) price up date High Low Stock Price p +or- Botswana Diamonds Pre 0.000 0.000 0.391L 0.772L 0.060L 0.140L 0.00000 0.00000 - 0.000 0.000 12/14 20.00 AIM IIG Intuitive Investments Group PLC 23.25 0.43 23.70 21.70 939.7 There are currently no rights offers by any companies listed on the LSE. Equatorial Palm Oil Pre 0.011 0.167 6.211L 15.131L 0.017L 0.042L 0.00000 0.00000 - 0.000 0.000 12/04 2.84 AIM HE1 Helium One Global Ltd 6.60 -0.03 8.90 3.75 3279.5 Hollywood Bowl Group Pre 79.473 129.894 1.196 27.588 0.900 14.860 0.00000 5.16000 - 0.000 7.430 Miton UK MicroCap Trust Int 13.979 9.994L 11.620 6.820L 0.00000 0.00000 - 0.099 0.200 Nakama Group Int 3.139 4.767 0.099L 0.020 0.080L 0.010 0.00000 0.00000 - 0.000 0.000 RUA Life Sciences Int 0.631 0.299 0.622L 0.239L 3.760L 1.080L 0.00000 0.00000 - 0.000 0.000 Schroder AsiaPacific Fund Pre 144.361 15.263 85.670 8.030 8.00000 9.70000 Feb 8 8.000 9.700 Scottish Investment Trust (The) Pre 64.507L 9.951 89.820L 10.570 6.10000 6.90000 Feb 12 11.800 12.200 Tertiary Minerals Pre 0.176 0.190 2.498L 0.832L 0.380L 0.190L 0.00000 0.00000 - 0.000 0.000 Tungsten Corp Int 18.013 18.161 30.487L 2.448L 24.180L 1.970L 0.00000 0.00000 - 0.000 0.000
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.
DECEMBER 16 2020 Section:Stats Time: 15/12/2020 - 18:23 User: gerry.white Page Name: MARKET DATA 1, Part,Page,Edition: EUR, 11, 1 12 ★ FINANCIAL TIMES Wednesday 16 December 2020
MARKET DATA
FT500: THE WORLD'S LARGEST COMPANIES
:HHN :HHN :HHN :HHN :HHN :HHN 6WRFN 3ULFH 'D\&KJ +LJK /RZ FT 500: TOP 20 FT 500: BOTTOM 20 BONDS: HIGH YIELD & EMERGING MARKET BONDS: GLOBAL INVESTMENT GRADE &ORVH 3UHY 'D\ :HHN 0RQWK &ORVH 3UHY 'D\ :HHN 0RQWK 'D\ V 0WK V 6SUHDG 'D\ V 0WK V 6SUHDG SULFH SULFH FKDQJH FKDQJH FKDQJH FKDQJH FKDQJH SULFH SULFH FKDQJH FKDQJH FKDQJH FKDQJH FKDQJH 5HG 5DWLQJV %LG %LG FKJH FKJH YV 5HG 5DWLQJV %LG %LG FKJH FKJH YV $OH[LRQ &DUQLYDO 'HF GDWH &RXSRQ 6 0 ) SULFH \LHOG \LHOG \LHOG 86 'HF GDWH &RXSRQ 6 0 ) SULFH \LHOG \LHOG \LHOG 86 6RIWEDQN 3IL]HU +LJK MANAGED FUNDS SERVICE Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield Fund Bid Offer D+/- Yield GBP Accumulating Share Class £ 30.38 - -0.43 0.00 Franklin Emg Mkts Debt Opp USD $ 16.34 - 0.01 6.42 Rubrics Global Fixed Income UCITS Fund $ 182.47 - -0.13 0.00 Data Provided by GBP Distributing Share class £ 20.97 - -0.30 1.23 EUR Accumulating Share Class € 30.42 - -0.28 0.00 GBP Distributing Class (H) £ 11.98 - -0.08 0.98 Dodge & Cox Worldwide Funds plc-U.S. Stock Fund USD Accumulating Share Class $ 30.28 - -0.42 0.00 GBP Accumulating Share Class £ 35.34 - -0.77 0.00 Aberdeen Standard Capital (JER) GBP Distributing Share Class £ 21.58 - -0.47 0.95 PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130 Slater EUR Accumulating Share Class € 32.32 - -0.54 0.00 GAM FCA Recognised [email protected], www.funds.gam.com GBP Distributing Class (H) £ 12.55 - -0.17 0.97 www.morningstar.co.uk Aberdeen Standard Capital Offshore Strategy Fund Limited Regulated Investments Data as shown is for information purposes only. No Bridge Fund £ 2.1891 - -0.0005 1.72 LAPIS GBL TOP 50 DIV.YLD-Na-D £ 100.58 - -1.41 3.25 offer is made by Morningstar or this publication. Global Equity Fund £ 3.0941 - -0.0009 1.06 LAPIS GBL F OWD 50 DIV.YLD-Na-D £ 101.22 - -0.56 0.70 Global Fixed Interest Fund £ 0.9949 - 0.0008 4.15 Income Fund £ 0.6363 - -0.0014 2.46 Sterling Fixed Interest Fund £ 0.9296 - 0.0025 2.87 Guide to Data UK Equity Fund £ 1.9637 - -0.0150 2.79 Ashmore Investment Management Limited (LUX) New Capital UCITS Fund PLC (IRL) Polar Capital Funds Plc (IRL) The fund prices quoted on these pages are supplied by 2 rue Albert Borschette L-1246 Luxembourg Leconfield House, Curzon Street, London, W1J 5JB Regulated Slater Investments Ltd (UK) the operator of the relevant fund. Details of funds FCA Recognised www.newcapitalfunds.com Automation & Artificial Intelligence CL I USD Acc $ 17.28 17.28 0.05 0.00 www.slaterinvestments.com; Tel: 0207 220 9460 published on these pages, including prices, are for the Ashmore SICAV Emerging Market Debt Fund $ 93.09 - 0.26 4.86 Genesis Investment Management LLP FCA Recognised Asian Financials I USD $ 445.26 445.26 -0.71 0.00 FCA Recognised purpose of information only and should only be used Ashmore SICAV Emerging Market Frontier Equity Fund $ 163.74 - 1.25 1.49 Other International Funds New Capital UCITS Funds Biotechnology I USD $ 39.15 39.15 1.41 0.00 Slater Growth 648.33 648.33 0.35 0.00 as a guide. The Financial Times Limited makes no Ashmore SICAV Emerging Market Total Return Fund $ 82.45 - 0.15 4.15 Emerging Mkts NAV £ 7.21 - -0.16 0.00 New Capital China Equity Fund $ 269.31 - 0.64 - Emerging Market Stars I USD Acc $ 14.75 - -0.13 0.00 Slater Income A Inc 124.53 124.53 -1.08 5.22 representation as to their accuracy or completeness and they should not be relied upon when making an Ashmore SICAV Global Small Cap Equity Fund $ 203.91 - 0.37 0.02 New Capital Dynamic European Equity Fund € 129.80 - 0.35 0.00 Slater Recovery 302.78 302.78 1.36 0.00 European Ex UK Inc EUR Acc € 11.49 11.49 0.06 0.00 investment decision. Aegon Asset Management UK ICVC (UK) EM Active Equity Fund Acc USD $ 156.28 - -1.39 0.00 New Capital Dynamic UK Equity Fund £ 115.30 - 0.03 - Financial Opps I USD $ 13.29 - 0.00 2.05 Slater Artorius 266.77 266.77 0.84 0.00 3 Lochside Crescent, Edinburgh, EH12 9SA EM Equity Fund Acc USD $ 142.18 - -0.15 0.00 New Capital Global Alpha Fund £ 116.74 - -0.26 0.00 GEM Income I USD $ 12.87 - 0.03 0.00 The sale of interests in the funds listed on these pages 0800 358 3009 www.aegonam.com may, in certain jurisdictions, be restricted by law and EM Mkts Corp.Debt USD F $ 91.75 - 0.21 5.64 New Capital Global Equity Conviction Fund $ 197.36 - -0.35 - Global Convertible I USD $ 16.93 16.93 0.04 0.00 Authorised Funds the funds will not necessarily be available to persons EM Mkts Loc.Ccy Bd USD F $ 79.75 - -0.07 4.55 New Capital Global Value Credit Fund $ 161.11 - 0.15 0.00 Global Insurance I GBP £ 7.10 - -0.09 0.00 in all jurisdictions in which the publication circulates. Global Equity GBP B Acc £ 3.09 - 0.01 0.00 Dragon Capital EM Short Duration Fund Acc USD $ 120.00 - 0.73 0.00 www.dragoncapital.com New Capital Japan Equity Fund ¥ 1631.02 - 11.95 0.00 Global Technology I USD $ 85.02 - 0.18 0.00 Persons in any doubt should take appropriate professional advice. Data collated by Morningstar. For Fund information:[email protected] New Capital US Growth Fund $ 429.57 - 1.01 0.00 Healthcare Blue Chip Fund I USD Acc $ 15.61 15.61 -0.01 0.00 HPB Assurance Ltd other queries contact [email protected] +44 Other International Funds New Capital US Small Cap Growth Fund $ 220.80 - 2.59 0.00 Healthcare Opps I USD $ 63.29 - 0.19 0.00 (0)207 873 4211. Anglo Intl House, Bank Hill, Douglas, Isle of Man, IM1 4LN 01638 563490 Vietnam Equity (UCITS) Fund A USD $ 24.81 - -0.22 - New Capital Wealthy Nations Bond Fund $ 156.29 - 0.09 0.00 Income Opportunities B2 I GBP Acc £ 2.31 2.31 -0.01 0.00 International Insurances Japan Value I JPY ¥ 111.39 111.39 -0.06 0.00 The fund prices published in this edition along with Holiday Property Bond Ser 1 £ 0.49 - 0.00 0.00 additional information are also available on the North American I USD $ 30.30 30.30 -0.15 0.00 Financial Times website, www.ft.com/funds. The Holiday Property Bond Ser 2 £ 0.62 - 0.00 0.00 UK Val Opp I GBP Acc £ 11.54 11.54 -0.06 0.00 funds published on these pages are grouped together by fund management company. Atlantas Sicav (LUX) Regulated Prices are in pence unless otherwise indicated. The change, if shown, is the change on the previously American Dynamic $ 6533.40 6533.40 2.87 0.00 quoted figure (not all funds update prices daily). Those American One $ 6278.56 6278.56 -67.69 0.00 Ennismore Smaller Cos Plc (IRL) designated $ with no prefix refer to US dollars. Yield percentage figures (in Tuesday to Saturday papers) Bond Global € 1499.13 1499.13 -1.79 0.00 5 Kensington Church St, London W8 4LD 020 7368 4220 allow for buying expenses. Prices of certain older Eurocroissance € 1205.54 1205.54 -3.72 0.00 FCA Recognised insurance linked plans might be subject to capital Intrinsic Value Investors (IVI) LLP (IRL) Far East $ 1206.42 - 7.42 0.00 Ennismore European Smlr Cos NAV £ 133.72 - 0.28 0.00 Polar Capital LLP (CYM) Stonehage Fleming Investment Management Ltd (IRL) gains tax on sales. 1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210 Ennismore European Smlr Cos NAV € 146.87 - 1.27 0.00 Regulated www.stonehagefleming.com/gbi FCA Recognised Guide to pricing of Authorised Investment Funds: European Forager A EUR € 185.24 - 17.13 0.00 [email protected] (compiled with the assistance of the IMA. The IVI European Fund EUR € 23.59 - 0.15 0.00 Regulated Investment Management Association, 65 Kingsway, IVI European Fund GBP £ 28.59 - -0.01 0.33 Aegon Asset Management Investment Company (Ireland) (IRL) SF Global Best Ideas Eq B USD ACC $ 238.10 - 0.38 - London WC2B 6TD. 1 North Wall Quay Dublin 1, Ireland +35 3162 24493 SF Global Best Ideas Eq D GBP INC £ 271.27 - -1.73 - Tel: +44 (0)20 7831 0898.) FCA Recognised Absolute Return Bond B GBP Acc 1155.20 - -3.09 1.61 OEIC: Open-Ended Investment Company. Similar to a unit trust but using a company rather than a trust High Yield Global Bond A GBP Inc 511.95 - 0.13 4.49 Oasis Crescent Management Company Ltd Barclays Investment Funds (CI) Ltd (JER) Other International Funds structure. High Yield Global Bond B GBP Inc 1096.01 - 0.29 5.23 39/41 Broad Street, St Helier, Jersey, JE2 3RR Channel Islands 01534 812800 Ennismore European Smlr Cos Hedge Fd Oasis Crescent Equity Fund R 10.96 - -0.07 0.21 Global Equity Income B GBP Acc 2062.46 - -5.69 0.00 FCA Recognised Different share classes are issued to reflect a different Other International Funds Private Fund Mgrs (Guernsey) Ltd (GSY) currency, charging structure or type of holder. Global Equity Income B GBP Inc 1455.44 - -8.32 3.19 Bond Funds NAV € 527.24 - 8.77 0.00 Regulated lobal Equity Market Neutral Fund - B Acc GBP £ 12.24 - 0.00 0.00 (UK) Sterling Bond F £ 0.50 - 0.00 2.17 Janus Henderson Investors Monument Growth 08/12/2020 £ 514.46 519.46 11.50 - Selling price: Also called bid price. The price at which Global Sustainable Equity B Acc GBP £ 27.47 - 0.11 0.00 PO Box 9023, Chelmsford, CM99 2WB Enquiries: 0800 832 832 units in a unit trust are sold by investors. Global Sustainable Equity C Acc GBP £ 27.86 - 0.11 - www.janushenderson.com Authorised Inv Funds Buying price: Also called offer price. The price at Inv Grd Gbl Bond A Inc GBH 629.11 - 1.26 1.81 which units in a unit trust are bought by investors. Janus Henderson Instl UK Idx Opps A Acc £ 0.95 - -0.01 - Short Dated High Yld Bd B Acc GBP £ 11.03 - 0.00 0.00 Includes manager’s initial charge. Short Dated High Yld Bd C Acc GBP (Hdg) £ 11.13 - 0.00 0.00 Oasis Global Mgmt Co (Ireland) Ltd (IRL) Single price: Based on a mid-market valuation of the Strategic Global Bond A GBP Inc 1322.30 - 2.35 2.70 Regulated underlying investments. The buying and selling price Strategic Global Bond B GBP Inc 750.61 - 1.33 3.45 Equinox Fund Mgmt (Guernsey) Limited (GSY) OGM Oasis Crescent Global Investment Funds (UK) plc for shares of an OEIC and units of a single priced unit trust are the same. Regulated Prusik Investment Management LLP (IRL) Oasis Crescent Global Short Term Income Fund I - Class A Dist $ 0.99 - 0.00 2.00 Enquiries - 0207 493 1331 Equinox Russian Opportunities Fund Limited $ 184.85 - 11.87 0.00 Oasis Crescent Global Equity Fund $ 34.97 - 0.00 0.25 Treatment of manager’s periodic capital charge: Regulated Oasis Crescent Variable Balanced Fund £ 9.47 - 0.00 0.00 The letter C denotes that the trust deducts all or part Prusik Asian Equity Income B Dist $ 180.99 - -0.81 - (UK) of the manager’s/operator’s periodic charge from M & G Securities (1200)F (UK) OasisCresGl Income Class A $ 11.09 - 0.00 - Toscafund Asset Management LLP Prusik Asia Emerging Opportunities Fund A Acc $ 185.93 - -1.33 - www.toscafund.com capital, contact the manager/operator for full details PO Box 9038, Chelmsford, CM99 2XF OasisCresGl LowBal D ($) Dist $ 12.60 - 0.00 0.81 of the effect of this course of action. Prusik Asia Fund U Dist. £ 230.39 - 1.31 0.00 Authorised Funds www.mandg.co.uk/charities Enq./Dealing: 0800 917 4472 OasisCresGl Med Eq Bal A ($) Dist $ 13.73 - 0.00 0.32 Aptus Global Financials B Acc £ 3.70 - 0.03 4.35 Exit Charges: The letter E denotes that an exit charge Authorised Inv Funds Oasis Crescent Gbl Property Eqty $ 7.93 - 0.00 - M&G Charibond Charities Fixed Interest Fund (Charibond) Inc £ 1.25 - 0.00 2.24 Aptus Global Financials B Inc £ 2.58 - 0.02 5.58 may be made when you sell units, contact the manager/operator for full details. M&G Charibond Charities Fixed Interest Fund (Charibond) Acc £ 42.90 - 0.02 2.20 Euronova Asset Management UK LLP (CYM) M&G Charity Multi Asset Fund Inc £ 0.83 - 0.00 4.28 Time: Some funds give information about the timing of Brooks Macdonald International Fund Managers Limited (JER) Regulated M&G Charity Multi Asset Fund Acc £ 91.62 - -0.64 4.11 price quotes. The time shown alongside the fund 5 Anley Street, St Helier, Jersey, JE2 3QE Smaller Cos Cls One Shares € 52.62 - 0.18 0.00 manager’s/operator’s name is the valuation point for their unit trusts/OEICs, unless another time is +44 (0) 1534 700 104 (Int.) +44 (0) 800 735 8000 (UK) Smaller Cos Cls Two Shares € 34.52 - 0.11 0.00 indicated by the symbol alongside the individual unit Brooks Macdonald International Investment Funds Limited Smaller Cos Cls Three Shares € 17.39 - 0.05 0.00 Purisima Investment Fds (CI) Ltd (JER) trust/OEIC name. Euro High Income € 1.5678 - -0.0008 2.50 Smaller Cos Cls Four Shares € 22.36 - 0.07 0.00 Regulated Omnia Fund Ltd ✠ High Income £ 0.8884 - 0.0006 3.77 PCG B 285.77 - -5.97 0.00 Toscafund Asset Management LLP The symbols are as follows: 0001 to 1100 hours; ♦ Other International Funds PCG C 279.20 - -5.84 0.00 www.toscafund.com 1101 to 1400 hours; ▲1401 to 1700 hours; # 1701 to Sterling Bond £ 1.6485 - 0.0017 2.06 midnight. Daily dealing prices are set on the basis of Estimated NAV $ 621.90 - 60.56 0.00 Tosca A USD $ 306.77 - -23.55 - Algebris Investments (IRL) Brooks Macdonald International Multi Strategy Fund Limited the valuation point, a short period of time may elapse Tosca Mid Cap GBP £ 180.86 - 27.47 - Regulated Cautious Balanced Strategy £ 1.3474 - -0.0031 0.00 MMIP Investment Management Limited (GSY) before prices become available. Historic pricing: The letter H denotes that the managers/operators will Algebris Financial Credit I EUR € 186.41 - -0.41 0.00 Regulated Tosca Opportunity B USD $ 274.77 - 41.76 - Growth Strategy £ 1.9501 - -0.0054 0.00 normally deal on the price set at the most recent Algebris Financial Credit R EUR € 162.23 - -0.36 0.00 Pegasus Fund Ltd A-1 GBP £ 43.14 - 6.53 0.00 High Growth Strategy £ 2.6784 - -0.0103 0.00 Multi-Manager Investment Programmes PCC Limited valuation. The prices shown are the latest available Algebris Financial Credit Rd EUR € 109.20 - -0.24 4.74 US$ Growth Strategy $ 1.8807 - 0.0003 0.00 UK Equity Fd Cl A Series 01 £ 2617.54 2659.42 495.99 0.00 before publication and may not be the current dealing levels because of an intervening portfolio revaluation Algebris Financial Income I EUR € 152.30 - -1.14 0.00 Dealing Daily. Initial charge up to 2% FIL Investment Services (UK) Limited (1200)F (UK) Diversified Absolute Rtn Fd USD Cl AF2 $ 1560.95 - -30.80 0.00 or a switch to a forward pricing basis. The Algebris Financial Income R EUR € 141.08 - -1.06 0.00 130, Tonbridge Rd, Tonbridge TN11 9DZ Diversified Absolute Return Stlg Cell AF2 £ 1471.35 - -29.07 0.00 managers/operators must deal at a forward price on Algebris Financial Income Rd EUR € 93.20 - -0.70 3.61 Callfree: Private Clients 0800 414161 Global Equity Fund A Lead Series £ 1620.07 1625.45 135.16 0.00 Oryx International Growth Fund Ltd request, and may move to forward pricing at any time. Algebris Financial Equity B EUR € 109.31 - -1.46 0.00 Broker Dealings: 0800 414 181 Forward pricing: The letter F denotes that that Other International Funds Algebris IG Financial Credit B EUR € 110.74 - -0.08 0.00 OEIC Funds managers/operators deal at the price to be set at the Fidelity American Fund W-ACC-GBP £ 53.35 - -0.03 0.31 NAV (Fully Diluted) £ 9.10 - -0.52 0.00 next valuation. Algebris IG Financial Credit R EUR € 109.92 - -0.09 0.00 Algebris Global Credit Opportunities I EUR € 129.19 - -0.13 0.00 Fidelity Cash Fund Y-ACC-GBP £ 1.02 - 0.00 0.66 Troy Asset Mgt (1200) (UK) Investors can be given no definite price in advance of 65 Gresham Street, London, EC2V 7NQ Algebris Global Credit Opportunities R EUR € 127.11 - -0.12 0.00 FID Emerg Europe, Middle East and Africa Fund W-ACC-GBP £ 2.35 - 0.01 4.21 the purchase or sale being carried out. The prices Order Desk and Enquiries: 0345 608 0950 appearing in the newspaper are the most recent Algebris Global Credit Opportunities Rd EUR € 127.11 - -0.12 0.00 (UK) Fidelity Global Enhanced Income Fund W-ACC-GBP £ 2.05 - -0.01 3.68 CCLA Investment Management Ltd Authorised Inv Funds provided by the managers/operators. Scheme Algebris Core Italy I EUR € 117.39 - -0.30 0.00 Senator House 85 Queen Victoria Street London EC4V 4ET Fidelity Global Focus Fund W-ACC-GBP £ 33.57 - -0.09 0.20 Authorised Corporate Director - Link Fund Solutions particulars, prospectus, key features and reports: The Algebris Core Italy R EUR € 109.85 - -0.28 0.00 Authorised Inv Funds Fidelity Global High Yield Fund Y-ACC-GBP £ 15.52 - 0.00 3.65 Marwyn Asset Management Limited (CYM) most recent particulars and documents may be Trojan Investment Funds Algebris Allocation I EUR € 103.34 - -0.30 0.00 Diversified Income 1 Units GBP Inc £ 1.55 1.55 -0.01 0.03 Fidelity Japan Fund W-ACC-GBP £ 5.04 - -0.02 0.58 Regulated obtained free of charge from fund managers/operators. * Indicates funds which do not Diversified Income 2 Units GBP Inc £ 1.49 1.49 -0.01 0.03 Fidelity Japan Smaller Companies Fund W-ACC-GBP £ 4.30 - 0.00 0.35 Ram Active Investments SA Trojan Ethical O Acc 118.07 - 0.05 0.10 Marwyn Value Investors £ 340.40 - -14.66 0.00 price on Fridays. Diversified Income 3 Units GBP Inc £ 1.50 1.50 -0.01 0.03 Fidelity Select 50 Balanced Fund PI-ACC-GBP £ 1.15 - 0.00 0.83 www.ram-ai.com Trojan Ethical O Inc 117.84 - 0.05 0.09 Fidelity Special Situations Fund W-ACC-GBP £ 33.37 - -0.33 3.43 Other International Funds Charges for this advertising service are based on the Short Dated Corporate Bond Fund Y ACC GBP £ 11.10 - 0.03 3.86 RAM Systematic Emerg Markets Eq $ 208.21 208.21 0.00 - number of lines published and the classification of the RAM Systematic European Eq € 460.77 460.77 3.88 - fund. Please contact [email protected] or Fidelity Sustainable Water & Waste W Acc £ 1.10 - 0.00 - call +44 (0)20 7873 3132 for further information. Fidelity Sustainable Water & Waste W Inc £ 1.10 - 0.00 - RAM Systematic Funds Global Sustainable Income Eq $ 129.56 129.56 0.81 0.00 Fidelity UK Growth Fund W-ACC-GBP £ 3.34 - -0.05 1.14 RAM Systematic Global Eq Sustainable Alpha $ 100.72 100.72 -0.24 - The Antares European Fund Limited Fidelity UK Select Fund W-ACC-GBP £ 3.16 - -0.02 2.36 RAM Systematic Long/Short European Eq € 130.10 130.10 1.06 - RAM Systematic US Sustainable Eq $ 345.19 345.19 -1.10 - Other International Institutional OEIC Funds RAM Tactical Global Bond Total Return € 156.25 156.25 0.08 - AEF Ltd Usd $ 554.84 - -1.94 0.00 CG Asset Management Limited (IRL) Europe (ex-UK) Fund ACC-GBP £ 7.06 - 0.03 0.55 WA Fixed Income Fund Plc (IRL) 25 Moorgate, London, EC2R 6AY RAM Tactical II Asia Bond Total Return $ 156.45 156.45 0.03 - Regulated AEF Ltd Eur € 519.13 - -1.86 0.00 Dealing: Tel. +353 1434 5098 Fax. +353 1542 2859 Orbis Investments (U.K.) Limited (GBR) European Multi-Sector € 127.37 - -0.16 3.16 FCA Recognised 28 Dorset Square, London, NW1 6QG CG Portfolio Fund Plc www.orbis.com 0800 358 2030 Absolute Return Cls M Inc £ 131.65 131.65 -0.30 1.35 Regulated Capital Gearing Portfolio GBP P £ 35935.26 35935.26 -105.07 - Orbis OEIC Global Cautious Standard £ 10.38 - -0.06 0.03 Capital Gearing Portfolio GBP V £ 174.77 174.77 -0.51 - Orbis OEIC Global Balanced Standard £ 15.46 - -0.15 0.00 Dollar Fund Cls D Inc £ 171.12 171.12 -1.21 1.43 Orbis OEIC Global Equity Standard £ 19.66 - -0.19 0.00 Findlay Park Funds Plc (IRL) Dollar Hedged GBP Inc £ 106.72 106.72 0.08 1.31 Orbis OEIC UK Equity Standard £ 8.04 - 0.03 0.00 Ruffer LLP (1000)F (UK) Arisaig Partners 30 Herbert Street, Dublin 2, Ireland Tel: 020 7968 4900 Milltrust International Managed Investments ICAV (IRL) Real Return Cls A Inc £ 209.32 209.32 -1.43 1.61 65 Gresham Street, London, EC2V 7NQ Zadig Gestion (Memnon Fund) (LUX) Other International Funds FCA Recognised [email protected], +44(0)20 8123 8316 www.milltrust.com Order Desk and Enquiries: 0345 601 9610 FCA Recognised Arisaig Asia Consumer Fund Class A (Ex-Alcohol) shares $ 125.13 - 0.60 0.00 American EUR Unhedged Class € 127.92 - -0.53 - Regulated Authorised Inv Funds Memnon European Fund - Class U2 GBP £ 196.44 - 0.06 0.00 American Fund USD Class $ 155.10 - -0.41 0.00 British Innovation Fund £ 121.92 - 2.89 0.00 Arisaig Asia Consumer Fund Limited $ 124.61 - 0.68 0.00 Authorised Corporate Director - Link Fund Solutions Arisaig Global Emerging Markets Consumer Fund $ 16.70 - 0.04 0.00 American Fund GBP Hedged £ 78.17 - -0.20 0.00 MAI - Buy & Lease (Australia) A$ 102.95 - -0.80 0.00 LF Ruffer European C Acc 787.54 - 7.63 0.05 Arisaig Global Emerging Markets Consumer UCITS € 12.85 - -0.01 - American Fund GBP Unhedged £ 116.46 - -1.24 0.00 MAI - Buy & Lease (New Zealand)NZ$ 97.26 - -0.02 0.00 LF Ruffer European C Inc 143.71 - 1.39 0.09 Arisaig Global Emerging Markets Consumer UCITS STG £ 14.50 - -0.10 - Milltrust Global Emerging Markets Fund - Class A $ 111.69 - -0.27 0.00 LF Ruffer European O Acc 768.06 - 7.40 0.00 Arisaig Latin America Consumer Fund $ 25.95 - 0.01 0.00 The Climate Impact Asia Fund (Class A) $ 112.68 - 5.26 - LF Ruffer Equity & General C Acc 495.23 - 8.94 0.18 Chartered Asset Management Pte Ltd LF Ruffer Equity & General C Inc 452.91 - 8.17 0.18 Other International Funds LF Ruffer Equity & General O Acc 483.02 - 8.70 0.00 CAM-GTF Limited $ 317343.01 317343.01 4402.86 0.00 LF Ruffer Equity & General O Inc 447.19 - 8.04 0.00 CAM GTi Limited $ 788.22 - -58.29 0.00 LF Ruffer Gold C Acc 295.28 - 1.55 0.00 Raffles-Asia Investment Company $ 1.53 1.53 0.08 1.96 Foord Asset Management LF Ruffer Gold C Inc 178.71 - 0.94 0.00 Website: www.foord.com - Email: [email protected] LF Ruffer Gold O Acc 287.89 - 1.50 0.00 FCA Recognised - Luxembourg UCITS LF Ruffer Japanese C Inc 166.12 - -2.30 0.08 Artemis Fund Managers Ltd (1200)F (UK) Milltrust International Managed Investments SPC LF Ruffer Japanese C Acc 356.98 - -4.93 0.08 57 St. James's Street, London SW1A 1LD 0800 092 2051 Foord International Fund | R $ 45.07 - -0.25 - [email protected], +44(0)20 8123 8316, www.milltrust.com LF Ruffer Pacific & Emerging Markets C Acc 393.87 - 5.25 0.79 Authorised Inv Funds Foord Global Equity Fund (Lux) | R $ 16.86 - -0.10 - Regulated Platinum Capital Management Ltd Artemis Corporate Bond I Acc £ 1.14 - -0.01 1.68 Regulated Milltrust Alaska Brazil SP A $ 74.57 - -1.52 - LF Ruffer Pacific & Emerging Markets C Inc 107.34 - 1.43 0.82 Other International Funds Artemis Target Return Bond I Acc £ 1.06 - 0.00 - Foord Global Equity Fund (Sing) | B $ 20.67 - -0.11 - Milltrust Laurium Africa SP A $ 94.72 - 0.29 - LF Ruffer Pacific & Emerging Markets O Acc 383.79 - 5.10 0.51 Platinum All Star Fund - A $ 132.45 --- Foord International Trust (Gsy) $ 44.86 - -0.25 0.00 Milltrust Marcellus India Fund $ 115.59 - 0.21 - LF Ruffer Total Return C Acc 501.65 - 2.90 0.84 Dodge & Cox Worldwide Funds (IRL) Milltrust Singular ASEAN SP Founders $ 148.41 - -0.31 - Platinum Global Growth UCITS Fund $ 13.19 - -0.01 0.00 LF Ruffer Total Return C Inc 324.64 - 1.88 0.84 6 Duke Street,St.James,London SW1Y 6BN Milltrust SPARX Korea Equity SP A $ 159.19 - 0.40 - Platinum Essential Resources UCITS Fund SICAV USD Class E $ 7.96 - -0.06 0.00 LF Ruffer Total Return O Acc 489.23 - 2.80 0.84 www.dodgeandcox.worldwide.com 020 3713 7664 Milltrust VTB Russia Fund SP $ 121.84 - -1.92 - Platinum Global Dividend UCITS Fund $ 55.30 - 0.08 0.00 LF Ruffer Total Return O Inc 316.42 - 1.81 0.85 FCA Recognised Milltrust Xingtai China SP A $ 137.29 - 1.52 - Dodge & Cox Worldwide Funds plc - Global Bond Fund EUR Accumulating Class € 14.94 - -0.04 0.00 EUR Accumulating Class (H) € 11.65 - 0.00 0.00 EUR Distributing Class € 11.73 - -0.03 3.74 Franklin Templeton International Services Sarl (IRL) EUR Distributing Class (H) € 9.11 - 0.00 3.77 JPMorgan House - International Financial Services Centre,Dublin 1, Ireland GBP Distributing Class £ 13.05 - -0.10 3.85 Other International Funds GBP Distributing Class (H) £ 9.60 - 0.00 4.09 Franklin Emerging Market Debt Opportunities Fund Plc Rubrics Global UCITS Funds Plc (IRL) USD Accumulating Class $ 13.10 - 0.01 0.00 Franklin Emg Mkts Debt Opp CHFSFr 14.24 - -0.02 9.35 www.rubricsam.com Regulated Dodge & Cox Worldwide Funds plc-Global Stock Fund Franklin Emg Mkts Debt Opp GBP £ 9.37 - -0.02 6.20 Rubrics Emerging Markets Fixed Income UCITS Fund $ 142.73 - -0.13 0.00 USD Accumulating Share Class $ 24.61 - -0.16 0.00 Franklin Emg Mkts Debt Opp SGD S$ 20.52 - -0.01 4.49 Rubrics Global Credit UCITS Fund $ 17.75 - 0.00 0.00 DECEMBER 16 2020 Section:Stats Time: 15/12/2020 - 18:48 User: gerry.white Page Name: MANAGED FUNDS 4, Part,Page,Edition: EUR, 13, 1 14 ★ FINANCIAL TIMES Wednesday 16 December 2020 arts both choreographed and freestyle. DANCE Can’t Kill Us All, a filmed solo nar- rative on mental deterioration and A qualified thumbs-up for McCartney release, by London dancer and Breakin’ Convention Sadler’s Wells, London choreographer Botis Seva, filled a aaaae stage-cleaning gap. In the film, Seva plays a young father trapped Helen Barrett in a tiny London flat with a small pop album child. Father and son’s vulnerabil- Breakin’ Convention hip-hop ity is sensitive and terrifying. Seva McCartney III festivals are fun and boisterous, is a 2019 Olivier Award winner and Capitol Records but practicalities came first at an exceptional talent. aaaee this show. Jonzi D, its artistic direc- Choreographer Jamaal O’Dris- tor, bounced in front of the safety coll and B-boy Marius Mates Ludovic Hunter-Tilney curtain — “Are you happy to be offered a mesmerising reflection back?” — before explaining he on suppressed rage and intense Paul McCartney has a tendency to con- would be ad-libbing between per- physical despair, with a new duet, jure up self-named albums at moments formances while the stage was One%. Near-superhuman core of pressure, like a release valve. The first sprayed and mopped. strength saw them support their McCartney came out in 1970 when The The world has changed since the bodies with one hand over and Beatles were in their death throes. His full festival was cancelled in May over again, but they did not lose soon-to-be ex-bandmates were angry at (it is scheduled to return in 2021). grace, and the biggest cheer of the its timing: they believed McCartney was Tonight was a mini-showcase of night was theirs. using the break-up to promote his solo live and filmed performances, the The crowd-pleasing crew Boy debut. They were also dismissive of the first choreographic responses to Blue rounded things off with a songs. “He’s a good PR man, Paul,” John the pandemic and the Black Lives premiere of Untethered 3.0, Lennon jibed. Matter movement. choreographed by Kenrick McCartney II came out a decade later There were common themes: “H20” Sandy. It is a high-energy in 1980, after he had been jolted by the humans unsteady, suspended in expression of loneliness and anxious experience of 10 days in jail in dream states, flopping like mario- imprisonment, with shafts of stage Japan for cannabis possession. Disillu- nettes. Limbs gave way, torsos jud- lighting becoming phantom prison sionment with his band Wings was dered, dancers appeared to levi- bars, at which the dancers aim another spur for making the album. Its tate. Sadler’s Wells’ audience was hopeless punches. quirky experiments with synthesisers at 30 per cent capacity, which There was more emotion as and drum machines foretold Wings’ end meant fewer bodies and winter Jonzi D reminded us that tonight the following year. Its reception was coats to absorb sound. The danc- was about black achievement: unfavourable, although it has since ers’ shuffling feet and breath were “The way we were treated as noth- acquired a cult following. audible — an intense experience. ing — but the amount that we had Now comes McCartney III. Like its A.I.M. Collective, the all-female to offer the world.” predecessors, it is literally a solo record: body-popping crew, were both Then we filed out, three metres McCartney plays all the instruments Paul McCartney played all the instruments on his new album — Mary McCartney perky and manic, like some apart, while he rapped: “Obey the and does all the vocals. Unlike McCart- deranged girl band. This edge- usher, don’t get caught in the ney or McCartney II, it arrives without purposeful results. Opening track Neither extreme is reached on the two dashed out in his Quarrymen days. of-madness physicality was a crush-uh.” any obvious personal or professional “Long Tailed Winter Bird” comes out tracks on McCartney III that are formed Notions of old age (he is 78) are dis- subtle and skilful display by drama in his life. This time the pressure swinging with muscular acoustic-guitar in the earlier album’s image. “Deep Deep missed. “Seize the Day” confronts him five young multiracial dancers, breakinconvention.com lies outside. McCartney made it during strums, a needling psych-rock riff and Feeling” is a slow-burning electronic with a situation in which “cold days the spring lockdown in his East Sussex funky bass and drums. “Slidin’” is a number with a mesmerising rhythmic come and the old ways fade away”. But The all-female farmhouse as coronavirus ripped 1970s rock juggernaut with McCartney pulse. “Deep Down” is less successful, a then he rallies amid the fluttering pen- body-popping through the world. in the driver’s cabin singing about feel- heavy-handed art-rock/disco hybrid. nants of 1970s pomp-rock and a consol- crew A.I.M. Of its two precursors, it more closely ing free. “Find My Way” is breezy-seem- Lyrically, McCartney sounds least ing thought: “I’m OK on a sunny day/ Collective resembles the 1970 album. McCartney ing power-pop with a cunningly comfortable when trying to be meaning- When the world deserves to be bright.” Belinda Lawley had a loose, relaxed feel — too relaxed, threaded note of tension, expressed ful. “Hear me, women and wives/ Hear Energetic musicianship holds the for many. It was a big hit, but there was through clashing melodies and time- me, husbands and lovers/ What we do years at bay, although McCartney’s dismay at the songs’ sketchy nature. changes. “Now you’re overwhelmed by with our lives/ Seems to matter to oth- vocals betray their advance. His high The casual tone seemed disrespectful your anxieties,” McCartney cries as his ers,” he enunciates in a forced voice in tone has a fraying quality in “The Kiss of next to the weightiness of The Beatles’ brightly harmonic song undergoes a “Women and Wives”. The assembly of Venus”, a sweet folk-rock number about splitting up. There have been attempts musical crisis of confidence. women, wives, husbands and lovers the “most harmonic sound” of two lov- to salvage its reputation, like McCart- The album’s most ambitious called together by the song disperses at ers in a summer clinch. Like a warm ney’s optimistic attempt to position it as moments recall McCartney II’s electronic its end, none the wiser. breeze, an electric harpsichord materi- a proto-indie album, but it isn’t one of experiments. That 1980 outing is a real In contrast, he sounds thoroughly alises to bolster the song’s acoustic har- his finest moments. curiosity, from awful teeth-on-edge at ease barking out the cheerfully mony with a rich, irrepressible tone. It McCartney III shares the same sense surrealism (“Temporary Secretary”) juvenile rhymes of “Lavatory Lil”, a is a very McCartneyish touch, typical of looseness, but with better, more to beautiful balladry (“Waterfalls”). jeu d’esprit of a type that might have been of the passing moments of inspiration that blow through McCartney III, a sequel that lives up to and often surpasses its inconsistent predecessors. Released on December 18 How games are underpinned by architecture most evocative games capture players’ baiting pastel hues. Each level is its own GAMING hearts with architecture as pure blast of building, as in the spare, delicate imagination. The submerged splendour Echochrome, or Manifold Garden, an Tom of Zora’s Domain in The Legend of Zelda: ingenious puzzle game inspired by the Breath of the Wild leaves a lasting stark lines of architect Tadao Ando. Faber impression with its cool hues and There are also games that empower drowned light, while the manor district players to become architects them- of Ald’ruhn in The Elder Scrolls III: Mor- selves. The sandbox-style construction rowind is memorably housed inside the of The Sims and SimCity has long hat is the first step in shell of an ancient Emperor land-crab. attracted those who want their game- designing a building? These environments have stories to play to scratch a creative itch. The work Start by thinking about tell: the parallel stairways of differing of developer Plethora Project engages how the space will be heights in Dark Souls’ Anor Londo nod to with architectural ideas more explicitly, used. Do you need space a history where giants walked among tasking players with rebuilding a com- Wfor people to gather in the entryway? humans, while learning to read the munity following an economic crash in Should the balcony doors open inwards gravity-defying architecture left by the Common’hood, or constructing a neigh- or outwards? Where is the perfect out- alien Nomai in Outer Wilds is the key to bourhood while balancing the costs of door space to stage an alien arachnid solving the game’s mysteries. energy and resources in Block’hood. ambush? There are, admittedly, a few Meanwhile, architects are beginning differences between real-world archi- to embrace gaming innovations. Clients tecture and game environment design. Gravity, physical are shown around prospective buildings But each year, the two disciplines draw labour and material in virtual reality, while several architec- closer than ever. ture studios use game design software to Both architecture and game design costs are not a concern simulate weather patterns, security are concerned with the built environ- risks, or human circulation around a ment, with predicting how an end-user to game developers space. The prestigious Bartlett School of will navigate a space. While real-world Architecture in London includes video buildings provide necessities such as Several game designers enter into dia- game urbanism in its postgraduate privacy or shelter from weather, gaming logue with real-world architectural urban design course. architecture is generally an aesthetic visionaries. Fumito Ueda constructed No marriage of gaming and architec- proposition intended to immerse play- magnificent, melancholy castles in Ico ture has scaled the heights of Minecraft, ers or a series of functional forms to be and Shadow of the Colossus, inspired by the block-building sandbox which has traversed. It exists to ornament, to con- the work of French illustrator Gérard sold more copies than any other game in strain, to conceal, to challenge our Trignac. The art deco Atlantis of Rap- history. Today its influence reaches reflexes and wits. ture in Bioshock draws from Fritz Lang’s beyond the digital world: the UN’s Early game environments operated as Metropolis, while Halo’s alien architec- “Block by Block” initiative gives the metaphors, abbreviating digital space ture synthesises Brutalism, Futurism, game to people in developing countries due to technical limitations. Approach a and the impossible geometries of vision- and asks them to digitally design new castle a few pixels wide in an old role- ary architect Etienne-Louis Boullée. public spaces for their neighbourhoods. playing game, and it opens, Tardis-like, Puzzle games provide some of the Their creations have influenced the con- to reveal a sprawling interior. Game most elegant examples of gaming archi- struction of real playgrounds in Johan- worlds were split into levels linked by a tecture. Smartphone sensation Monu- nesburg, public squares in Kosovo and central hub, and the progression could ment Valley asks players to navigate safer streets for teenage girls in Hanoi. be as simple as fire world, ice world, intricate, Escher-esque buildings After years of game developers learning boss fight. adorned with delicate parapets and from architects, today they are finally As game engines improved, environ- minarets, all bathed in Instagram- giving back. ment design grew more sophisticated. Today players dive into sprawling, Fumito Ueda’s coherent worlds with thousands of melancholy buildings. In these enormous spaces, castles in developers employ architectural tech- ‘Shadow of the niques for “wayfinding”, guiding gamers Colossus’ were through the space. They play with scale, inspired by the colour-code the environment, or tweak work of French light sources to show the player where to illustrator go, mimicking the work of real archi- Gérard Trignac tects, who use tunnels to encourage people to keep moving or open spaces to suggest we slow down and explore. Of course, game developers are liber- ated from many architectural con- straints. Gravity, physical labour and material costs are not a concern. The DECEMBER 16 2020 Section:Features Time: 15/12/2020 - 16:28 User: maria.crawford Page Name: ARTS LON, Part,Page,Edition: USA, 14, 1 Wednesday 16 December 2020 ★ FINANCIAL TIMES 15 FT BIG READ. US POLITICS Donald Trump could face several investigations when he leaves office. Although many Democrats believe any misconduct must be addressed, Joe Biden has strong political incentives to do nothing. By Kadhim Shubber Prosecuting a president hen Joe Biden is sworn Below: Joe Biden Biden administration. Michael Cohen, the White House — including by calling “The president out the door needs to in as president on has suggested he Mr Trump’s former lawyer, has testified for his own predecessor to be prose- pardon his whole family and himself January 20, his in-tray is not keen for a that Mr Trump had in the past inflated cuted — Mr Biden has pledged to restore because they want this witch hunt to go will include a pandemic prosecution of or deflated the stated value of his real the walls that previously existed, begin- on in perpetuity,” said Sean Hannity, the that continues to kill Donald Trump, estate depending on whether he was ning with a steadfast refusal to say one Fox News host and confidant of Mr Wthousands of Americans each day and above, to seeking a bank loan or filing his taxes, way or the other whether he believes Mr Trump, last month on his radio show. an economic crisis that has left millions dominate his raising questions of possible fraud that Trump should be investigated. Though that same 1974 DoJ memo out of work. Both those challenges rank presidency. Mr Vance’s office is already probing. “In terms of saying, ‘I think the presi- rejected the notion of a self-pardon, the among the most significant faced by any William Barr, Mr Trump’s conduct during the 2016 dent violated the law, I think the presi- question has never been tested in the incoming US president. But Mr Biden bottom, who campaign has also been the focus of a dent did this, therefore, go on and pros- courts and that uncertainty could be will be forced to tackle a third issue that resigned as federal investigation. Prosecutors in ecute him’, I will not do that,” Mr Biden politically useful for Mr Biden. may define his presidency as much as attorney- New York obtained the conviction of said in August. “From a political perspective, Trump the health and livelihoods of the Ameri- general on Cohen on campaign finance charges for Mr Biden has suggested that he is not does Biden a favour by pardoning him- can people: the fate of his predecessor. Monday, helped paying hush money to a porn star who keen for a possible investigation and self and his family,” says Lara Brown, Donald Trump will leave the White protect Trump. claimed an affair with Mr Trump. prosecution of Mr Trump to be the director of the Graduate School of Polit- House with potential personal criminal Sally Yates, But the case that is the most publicly centrepiece of his administration. He ical Management at George Washington liability unlike any commander-in- right, a fleshed out already is the obstruction of campaigned on the pandemic and eco- University. She says such a move could chief since Richard Nixon, who was contender to justice portion of Mr Mueller’s probe. nomic crisis. And when asked by NBC in provide a “helpful political out”. saved by a controversial and sweeping replace Barr, has Over some 182 pages of his report, Mr November if he supported investig- The Manhattan DA’s ongoing probe is pardon gifted by his successor Gerald said evidence of Mueller laid out in detail the conduct, ations of Mr Trump, Mr Biden again said unrestrained by any norms of political ‘Will it be a a more concrete outlet. Though it is only Ford after he resigned in disgrace. Mr obstruction of witnesses and legal arguments that the DoJ was not his to direct, but added: conduct. When Ford announced in 1974 examining a portion of Mr Trump’s con- Trump, who will depart after attempt- justice during would underpin a possible prosecution “What I’m focused on is getting the that he had given a full pardon to Nixon, media circus? duct — his business affairs — that area is ing to subvert his loss in a free and fair Robert Mueller’s of Mr Trump after he leaves office. It ref- American public back at a place where he warned that “ugly passions would You bet. the least complicated by constitutional election, is unlikely to receive any simi- investigation erenced instances where the president they have some certainty, some surety, again be aroused” if Nixon were pur- questions about the president’s author- lar such clemency from Mr Biden. was strong allegedly asked subordinates and asso- some knowledge that they can make it.” sued, and argued it was in the best inter- Maybe we’ve ity, and DoJ policies have long recog- Since first exploding on to the polit- Jim Watson/AFP/Getty ciates to shut down Mr Mueller’s probe, The comments have echoes of the ests of all Americans that the tumult of got to go nised that federal prosecutors may ical scene in 2015, Mr Trump has tested and where he used the potential for approach taken when Barack Obama his presidency be left in the past. defer to state investigators. and twisted the US political system to pardons as a way to influence witnesses took office in 2009, with Mr Biden as his Throughout his presidency, Mr through that “I suspect that there will be a strong breaking point, serving as a one-man to remain on his side. vice-president in the midst of another Trump has not just asserted his inno- to get to the pull if Manhattan were to go forward to crash course on the constitution, legal Sally Yates, a leading contender to be great crisis. Among the issues that cence of the varied allegations against other side at the very least defer the decision on and ethical norms, and the effectiveness Mr Biden’s attorney-general, said last spurred calls for accountability was the him, but has denounced scrutiny as this issue,” says Mr Weissmann, the or lack thereof of the guardrails on the year the case was a strong one. “I’ve per- CIA’s use of torture during the George W either “fake news” or part of a “witch where it’s former Mueller prosecutor. president’s power. Now his departure sonally prosecuted obstruction cases on Bush administration. Mr Obama said hunt” designed to bring him down. clear that this from office will force Washington to far, far less evidence than this,” she said his “general orientation is to say ‘let’s get Since losing to Mr Biden by a significant Avoiding repeat problems confront yet another question rarely on NBC. “And yes, I believe, if he were it right moving forward’”. margin, his rhetoric has only grown isn’t going to Beyond any personal liability for the asked in US history: should a former not the president of the US, he would The Obama administration rejected more extreme as Mr Trump has painted happen again’ president, the Biden administration president be prosecuted? likely be indicted on obstruction.” calls for a truth and reconciliation-style himself and his supporters as victims of John Dean, faces pressure for a broader reckoning While in office, Mr Trump has been Andrew Weissmann, who was a senior commission, while the DoJ said the a conspiracy to steal the election. of the Trump era. Democratic state protected by the Department of Justice. prosecutor on Mr Mueller’s special attorneys who authorised torture had Any post-presidency investigation Nixon’s White attorneys-general in New York and Under the leadership of William Barr, counsel investigation, says not pursuing not committed misconduct, and com- would be added to the palette of griev- House counsel Washington DC are investigating Mr who Mr Trump installed as attorney- that case would fatally undermine any menced a narrow independent probe ances with which Mr Trump could paint Trump’s business affairs. Inspectors- general in 2019, the DoJ helped the pres- future efforts to investigate possible led by John Durham — now special a potential comeback in 2024. general across the federal government ident stall a state criminal investigation wrongdoing by a sitting president. counsel appointed by Mr Barr to investi- “As a political matter, this would just will continue their ongoing probes. into possible tax fraud by the Manhat- “What does it mean if you don’t in any gate the origins of the Russia inquiry — strengthen Trump’s hand because it ‘From a Regardless of the outcome of the Senate tan district attorney, Cyrus Vance. way have a deterrent to the presidency that resulted in no prosecutions. would reinforce his claim that the deep run-off elections in Georgia, Democrats When Robert Mueller completed his undermining a special counsel investi- But Mr Biden may not follow suit. Mr state is out to get him,” says Eric Posner, political will continue to control the House of investigation into links between Russia gation into misconduct by the presi- Trump’s time in office is seen by his a Chicago Law School professor. “When perspective, Representatives and will no longer be and the 2016 Trump campaign, his dency?” he asks. “At that point, what opponents as nothing short of an exis- a prosecution like this is brought, it’s not dealing with an executive branch hostile report listed numerous instances of pos- you are saying in the future is the presi- tential threat to American democracy, just the defendant who’s on trial, the Trump does to their document requests. sible criminal obstruction of justice by dency is in effect de facto above the law. and his departure after only a single government is on trial as well.” Biden a “By not confronting wrongdoing, we Mr Trump but noted that a DoJ policy Because what’s the point of having the term something of a near-miss akin to Republicans have made clear that if deprive Americans of an accurate, barred indicting a sitting president. investigation?” the close passing of an asteroid. “We they control the Senate, they would seek favour by shared understanding of what hap- Those protections fall away at midday Mr Biden has thus far distanced him- escaped a brush with death,” says Mary protection for Mr Trump before approv- pardoning pened, fail to establish norms of behav- on January 20, leaving Mr Trump’s fate self from these questions, stating Anne Marsh, a Democratic strategist. ing any attorney-general nominee put himself and iour, and leave the door open to recur- in the hands of his opponents and, repeatedly that he will maintain the Top Democratic figures in the legal forward by Mr Biden. Lindsey Graham, rence,” says Ian Bassin, a former Obama should they proceed, the courts. No independence of the DoJ from the establishment have signalled that the outgoing Republican chairman of his family’ administration lawyer who now runs former president in US history has ever incumbent president. While Mr Trump attempting to move on without reckon- the Senate judiciary committee, told Lara Brown, non-partisan group Protect Democracy. endured prosecution. The question is has wrecked the norms that kept the ing with the conduct of the Trump Fox News in November there was “no George He argues that such a process should whether Mr Trump will be the first. department at a political distance from administration is untenable. Eric way in hell anybody’s gonna get con- be “independent, transparent and “We are a nation of laws, and presi- Holder, the attorney-general Mr Obama firmed that would agree” that Mr Washington designed not for retribution” but rather dents cannot be excluded from that,” appointed as he pledged to look forward Trump should be prosecuted. University to avoid a repeat in future. says John Dean, the White House coun- rather than back at Bush-era misdeeds, With no easy decisions, the Biden He adds: “It has to be about looking at sel who turned witness against Nixon told the Huffington Post in a recent administration, and more specifically all of the individual failures and sys- and served time in prison for his role interview that though exploring every the attorney-general appointed by it, temic failures that gave rise to serious in the Watergate abuses. Pursuing Mr potential misdeed that happened under may look for ways to avoid the question wrongdoing.” Trump would be difficult but the ideals Mr Trump was not possible, so too was of whether to pursue Mr Trump. One David Kris, who led the DoJ’s national of US democracy demand it, he argues. inaction. “I don’t think you can simply uncertain route could be the blunt use security division from 2009 to 2011 and “Will it be politically uncomfortable? let it go,” he said. “People need to be held of pardons by the president as he exits is a founder of Culper Partners, a consul- You bet it will be. Will it be a media cir- accountable.” office. The president’s allies have urged tancy, compares the challenge to the cus? You bet that, too. Maybe we’ve got him to issue pardons for close associates idea of the slowly boiling frog, arguing to go through that to get to the other side A politicised pursuit and even himself, whether through a there was a risk of becoming acclima- where it’s clear that this isn’t going to The arguments against pursuing Mr dubious self-pardon or some last- tised to what has been “very, very hot happen again,” he says. Trump are formidable. Though other minute resignation arrangement with water” without a considered effort to countries have prosecuted both current Mike Pence, the vice-president. reckon with Mr Trump’s presidency. Obstruction claims and former leaders — Israel, Brazil A 1974 DoJ legal opinion even raised “What if we just leave that water at Both Mr Trump’s conduct before and and France are recent examples — the the idea that a president could tempo- high but below boiling and we have while in office offer potential targets for US has not embarked on such a path rarily give their powers to their vice- another president in the future turning possible federal investigation under the before, never mind with a figure so president for the purposes of a pardon. up the heat again?” he asks. DECEMBER 16 2020 Section:Features Time: 15/12/2020 - 18:53 User: dana.prince Page Name: BIGPAGE, Part,Page,Edition: USA, 15, 1 16 ★ FINANCIAL TIMES Wednesday 16 December 2020 Email: [email protected] Include daytime telephone number and full address Corrections: [email protected] Letters If you are not satisfied with the FT’s response to your complaint, you can appeal to the FT Editorial Complaints Commissioner: [email protected] Remember small business It’s time to change the rules for private equity in the bank payout debate As banks prepare to restart the Amplifying Martin Wolf’s rejection of . . . that current owners are able to firms are holding between $2tn and payment of dividends and bonuses the Milton Friedman maxim that “the ignore.” But today’s owners may be $2.5tn in “dry powder”, waiting until they would do well to consider their social responsibility of business is to forced to give priority to short-term the pandemic’s end to buy distressed responsibility and self-interest in increase its profits” (Opinion, profits by a heavy debt load imposed companies cheaply. supporting the wider economy December 9), Professor Adrian Wood by earlier private equity owners. The rules must be changed to make (Report, December 12). argues that the problem is not profit PE companies buy out businesses, PE firms and their general partners Small and medium-sized enterprises maximisation as such, but load them with debt, and sell them. hold more risk (at present they gain on (SMEs) are the bedrock of both WEDNESDAY 16 DECEMBER 2020 maximisation of short-term rather The new owners may be obliged to the upside and face little risk of loss), employment and economic growth in than long-term profits (Letters, slash costs in order to service the debt, monitor and publicise their normally the UK. According to recent surveys by December 12). putting the company and employees at opaque operations while making it City UK and McKinsey over 500,000 Prof Wood cites Debenhams’ collapse risk — extracting value more than harder to transfer company ownership, SMEs may not survive the next 12 as an instance of “how pursuing near- creating value. Beloved Debenhams especially in Anglosphere countries. months. Many small business owners term gains for current owners by was bought by three US PE firms in Robert H Wade have turned to high cost credit cards borrowing not to invest but to pay 2003, saddled with $1.2bn in debt, sold Professor of Global Political Economy and overdrafts to tide them over. Both EU needs new teeth as dividends creates long-term risks for in 2006 and struggled thereafter to London School of Economics survival and growth depend on access workers, customers and government survive with that debt load. Now PE London WC2, UK to affordable finance. Over the past few months UK banks watchdog of Big Tech have closed their doors to new SME Friedman set a standard How to make US electoral businesses, choking off this vital Brussels is right to update its toolbox but is at risk of overreaching lifeline. As banks prepare to pay for judging management college a fairer system dividends and bonuses, they should As the only regulator of global signifi- global turnover, and ultimately In response to criticisms of Martin Christopher Caldwell’s defence of the step up their efforts to support our cance willing to take on the power of big break-up, if they fail to do so. Wolf’s article on Milton Friedman’s electoral college (Opinion, December SME sector. This government should technology companies, the EU has rel- The commission makes a powerful view of the purpose of a corporation 14) highlights the small state lead the way by using its own ished its image as an aggressive watch- case for tough regulation of large plat- (“Friedman was wrong on the advantage. If the electoral college shareholdings for wider public benefit. dog snapping at the heals of trespass- forms that can leverage their domi- corporation,” Opinion, December 9), continued but votes were instead Peter Udale ers. In fact, the EU has become a lum- nance in one market to win in adjacent Professors Paul Collier and John Kay counted on the one person, one vote Director, Responsible Finance bering beast unable to keep up in a fast- ones. Traditional enforcement tools say “the responsibility of those who basis, it is difficult to understand how Winchcombe, Gloucestershire, UK moving world. So the European require lengthy and complex investiga- direct companies is to build great that would destabilise democracy. The Commission is right to seek sweeping tions. But network effects and mass businesses” (Letters, December 14). federal system would remain intact, Why markets tell real new powers on the tech giants that are data accumulation mean market con- Messrs Collier and Kay talk of “a web of along with separation of powers among playing an ever bigger role in business trol can tip faster than regulators can relationships” that “differentiate the three branches of government and story of Exxon’s activists and citizens’ lives. react. The commission first began successful companies from failing a bicameral legislature, with the Senate The piece “Church fund joins effort to With its Digital Services Act, Brussels investigating how Google ranked ones” and then name Airbus and represented by two senators from each force change on Exxon”, (Report, wants to force the largest platforms to searches in its shopping service in Boeing, Toyota and General Motors. state. December 11) conflates opposing take greater responsibility for the way 2010. Ten years later, the company is The problem with such a standard is The original reason for the electoral “activist” tendencies. The Church of they moderate content, remove illegal still appealing against its fine for abuse applying it. It almost becomes a matter college structure stems from the England argues that ExxonMobil needs posts, provide transparency on adver- of dominance. Under the DMA, so- of what US Supreme Court Justice premise that states represent distinct to go green or at least go greener, with a tisers and vet third-party suppliers. called self-preferencing would be Potter Stewart said of judging what is economic and social interests based on “pragmatic strategy for the transition The companies will have to share data banned altogether. and what is not hard-core geography and that is how voters see to cleaner fuels”. But what of the US with the authorities over their proc- There would also be a ban on plat- pornography: “I know it when I see it.” their interests. Recent elections hedge fund DE Shaw? Is its “sizeable esses and compliance. Repeated fail- forms using data from their rivals to Such a standard does not provide Serious climate action should instead demonstrate a city vs rural split in stake” in ExxonMobil a bet on ures could be punished by fines of up to compete against them. Data will have either a basis upon which management focus on investments that will advance voting patterns, but cities and towns increased profits from a greener 6 per cent of global sales. to be marshalled into silos and made can be judged or a guide for those the decarbonisation efforts that Lord are creatures of the individual states, so supermajor? I doubt it. The likes of Facebook and Google available to rivals under interoperabil- running businesses as to what they are Turner describes, including research it is at the level of state government A good indication of the direction of already have protocols for removing ity rules, as for banks or energy compa- to do. Friedman’s standard of making and development of the means to where these divisions are managed or betting in the markets comes from illegal content and employ thousands nies. On top of all the obligations, the “as much money as possible while reduce or eliminate carbon emissions mismanaged. Rural states maintain Anjli Raval’s report “Brent crude of people to scrutinise posts, so the new commission will acquire a market conforming to [the] basic rules of the from hard-to-abate industries. equality with urban states in the breaches $50 for first time since rules may not make a radical differ- investigation function to future-proof society, both those embodied in law Jean Hetzel Senate. There is no reason why one March” (December 11), where the ence. The regulation has the advantage the rules and identify new gatekeepers. and those embodied in ethical custom” Chair, Johanson International person’s vote for the president should majors’ share prices all rose by around of setting pan-European standards and Those companies will be forced to dis- does. Paris, France count less than someone else’s. 4 per cent on the news. clearer definitions of liability, but com- close planned moves into new markets. Patrick J Allen John Shideler The history of the US is one of the Neil McNaughton panies will still have to contend with These proposals would give regula- River Forest, IL, US President of Futurepast and Adjunct increasing power of the president and Editor, Oil IT Journal, The Data Room myriad national rules on what consti- tors vast power over the tech sector Professor, Rochester Institute of the executive branch of government. Is Sèvres, France tutes illegal content. The UK coinci- with a real risk of over-reach. They Offsets do little to advance Technology, Arlington, VA, US it not more divisive to increase the dentally on Tuesday also set out pow- may well be watered down by member opportunity that the president is Grenfell tragedy shows ers to fine tech companies up to 10 per states in the two-year legislative proc- goal of decarbonisation Balancing competition selected by a minority of the votes? cent of their global turnover if they ess. Companies will no doubt then con- We applaud Adair Turner (“The costs The constitution was meant to be need to enforce regulation failed to speedily remove illegal or test each step in the courts. of tackling climate change keep on with collaboration amended, as it has been 27 times. Camilla Cavendish (“On Brexit, the harder-to-define harmful content. But competition authorities need to falling”, Opinion, December 12) for Andrew Hill (“Priority overload: how The perversity argument advanced Tories have fallen prey to magical The EU’s second strand, the Digital update their tool kits for an age when updating the estimated costs of to avoid it and how to relieve it”, Work by Mr Caldwell that we made it thinking”, Opinion, FT Weekend, Markets Act, is more far-reaching since use — and misuse — of data is displacing reducing greenhouse gas emissions in & Careers, December 14) draws on the through another four years and the December 12) suggests the creation of it attacks some of the very business price as a measure of consumer Britain (and elsewhere). TV series Industry to highlight the electoral college has not yet led to a an Office of Regulatory Assessment. models employed by the tech plat- welfare. This is an important message as tension between teamwork and constitutional crisis, so let’s not fix it, In the light of evidence emerging forms. It would introduce strict ex-ante The UK, Australia and Japan are tak- corporate executives increasingly focus individual ambition. But by failing to because our representatives might do from the Grenfell Tower inquiry and regulation of those tech companies that ing similar paths. There is a risk of a their attention on the risks associated explain how high performance is something stupid was also used against elsewhere, I suggest that an Office of are classed as gatekeepers. They will backlash in the US but the approach of with climate change, and make pledges conceptualised, the article the “rotten boroughs” before Britain’s Regulatory Enforcement would be have to comply with onerous prohibi- regulators is changing fast too, giving to decarbonise the world’s economies. inadvertently equates “performance” Reform Act of 1832. more appropriate. tions and obligations and face the pros- the commission a chance to build a Decarbonisation needs to occur with “output”. Tobey Winters Kathleen Mary Smith pect of fines worth up to 10 per cent of transatlantic consensus. globally and not just in Britain, and it Cultures characterised by an Simsbury, CT, US Emeritus Professor of Drama has to be carried out in accordance obsessive focus on output do indeed University of Chester, Cheshire, UK with principles of social equity. create dysfunction, as an erosion of Taking pride of place in a We quibble with Lord Turner on one trust and ethics crowds out Darwinists can wonder at point, and that is the role that buying collaboration. They also cultivate new generation of women carbon offsets can play. The reality is unhealthy competition, where for me Your article on the “Women of 2020” miracle of existence too that carbon offsets are mispriced. Their to win you must lose. (Spectrum, December 5) was In his letter “Darwin, Genesis and cost, especially with respect to In contrast, high-performing cultures exemplary. I wish I could afford to send Ash’arite Islam” (December 14), To save the high street, voluntary carbon market credits, does are characterised by high trust, healthy a page-turnable copy to every woman I David J Critchley perhaps overlooks not reflect the marginal cost of competition where we are motivated to know. another possibility — that those who abatement of greenhouse gas emissions raise each others’ game, and team And while I applaud Sarah Gilbert’s accept natural selection as settled fact first fix business rates in the most carbon-intense sectors. members working collaboratively stance — “Why are we even discussing also recognise human existence as a As voluntary carbon markets are towards a common goal. Collaboration women scientists? I’m not a woman kind of miracle. In that view, it may be The UK’s property-based tax is not fit for a post-pandemic world awash in unsold carbon credits that is the very essence of high-performing scientist, I’m a scientist” — I felt hugely a sufficient purpose in life to promote trade very cheaply, and whose claims teams. The key, in part, is aligning proud to be just that: one woman, circa human flourishing, irrespective of Even before Covid-19, a stroll down the duced reliefs for smaller businesses to quality are in some cases individual, team and organisational 2020, a small part of the generation, Genesis or Ash’arite Islam, or any high streets of Britain’s less prosperous that left 600,000 paying no rates at all. questionable, their purchase does little purpose and rewards. and regeneration, described. other -ism. towns, pockmarked with boarded-up Rateable values, meanwhile, became or nothing to advance the important Paul Berry Anne Greer Hume Vance shops, could be a dispiriting experi- disconnected from the rents they are goal of decarbonisation. London SW15, UK Worcester, Worcestershire, UK Somerville, MA, US ence. The pandemic is making a bad meant to reflect. They were not situation much worse. The recent fail- revalued between 2010 and 2017, when ures of Arcadia and Debenhams alone retail rents slumped in deprived areas have put at risk 25,000 jobs and 600- but soared in the richest, and retail Sameera Khan, a meat-eating Muslim Venkatraman’s story of her Parsi delays. Novelist Kiran Manral wrote plus stores, many of them “anchors” of sales were shifting rapidly online. A celebration journalist, and Manish Patel, a Hindu mother and Tamil Brahmin father, how her Catholic mother and Muslim town centres or malls. The causes of the Transitional arrangements phase in vegetarian corporate type, met on a who met in 1954 while volunteering father, who lived on the same Mumbai retail meltdown, including the online rate increases after revaluations to trek in the Himalayas in 1997. A year for a charity, and eventually eloped in street, took 14 years to muster the shopping boom, are complex; reme- avoid sudden big jumps, but also slow of interfaith after their high-altitude encounter, 1958 after failing to persuade her large courage to marry secretly in 1969, dies will need to be no less so. But one reductions — which retailers say leaves the two Mumbai residents married. family to agree to their marriage. before returning to her father’s family urgent reform priority is the property- depressed high streets in the Midlands love at a They now have two teenagers. Since its launch, the project has home “a fait accompli for both families based tax known as business rates. and northern England in effect “subsi- Yet Ms Khan is appalled at the been inundated with submissions to deal with”. Her father died 12 years Not all store chains are in crisis. Food dising” affluent parts of the south. The obstacles facing other interfaith from couples across India, as well as later. “They were together, as man and retailers’ revenues have surged as they next revaluation is in 2023, so after the hostile time couples in India, where the ruling from the children and grandchildren wife, for fewer years than they had have picked up sales from consumers rates holiday retailers will be paying Bharatiya Janata party sees such of interfaith couples. “It took on a life waited to get married to each other,” shielding at home, and from hospitality rates that reflect pre-pandemic values unions, particularly between Muslim of its own immediately,” Mr she wrote. businesses and “non-essential” retail with little relation to today’s reality. men and Hindu women, as a Halarnkar said. “All of them write to Mr Halarnkar says acceptance of rivals hit by virus restrictions — though To make the system workable, the demographic offensive against the us saying ‘It’s time to tell our story to interfaith love has deteriorated in grocers have faced heavy costs from provision that business rates are sup- Hindu majority. the world so others can be inspired.’ recent years as the BJP stokes religious scaling up operations to meet demand. posed to raise a similar inflation-ad- “We watch in horror as young The common theme we are finding is, tensions and steps up policing of After a backlash over £900m dividend justed total each year — currently people are criminalised for falling in ‘We are here; we are happy and we are intimate relations. “Interfaith and payments this year, Tesco bowed to about £26bn — should be dropped. love, as we did,” Ms Khan wrote on part of what it means to be Indian’.” inter-caste marriage has always been pressure to pay back what it saved from Reliefs should be reviewed and many Instagram recently. She and her In recent weeks, police have filed difficult in India,” he said. “But it the government’s one-year business phased out, and the rate rebased to husband are among many couples criminal cases against several Muslim seems that in the previous decades, rates “holiday”; rivals such as Wm closer to its original level. Revaluations now sharing their unorthodox love men in romantic relationships with once they got through the initial Morrison, J Sainsbury and Asda fol- should be annual, rapidly reflecting stories through the India Love Project Hindu women, and stopped the opposition, there was far greater lowed suit. changes in conditions. Such reforms on Instagram and Facebook, wedding of a Muslim man and Hindu acceptance of the marriage than now.” The estimated £1.8bn the supermar- could also help to ease the transition celebrating love “outside the shackles woman, although both families agreed In her love project post, Gayathiri kets are returning could help to fund a for office property, which faces poten- New Delhi of faith, caste, ethnicity and gender”. to the nuptials. Several BJP-ruled Ramadoss, a Hindu who married her one-year extension of the broader rates tially seismic changes if more people Curated by three journalists — states have pledged to introduce laws Muslim college sweetheart in 2015, holiday from next April — which the choose to work from home post-Covid. Notebook husband and wife Samar Halarnkar against love jihad. expressed sorrow at the growing government should announce now to What they will not do is level the and Priya Ramani and their friend Yet the stories and photos collected “hatred, intolerance and judgment give struggling retailers and hospitality playing field with online-only retailers, by Amy Kazmin Niloufer Venkatraman — the project is by the project show how love in India against interfaith love” but vowed to businesses a vital breathing space. which pay much lower rates than intended as an antidote to the public has always transcended conventional raise her daughter “to love beyond A thorough revamp should then aim groups with lots of high-street stores. A frenzy over “love jihad”, a rightwing religious and communal identities. “I religion, caste race and everything”. to make business rates fit for purpose. digital sales tax would capture some of concept that sees a broad conspiracy couldn’t let him go just because he Alisha Purandare, daughter of a Their principle remains sound; easy to the shift in sales, but would need care- by Muslim men to seduce Hindu prayed to a different God and spoke a high-caste Hindu mother and Muslim collect and hard to evade, property ful structuring to avoid simply adding women to convert them to Islam. different language,” Catholic Maria father, expressed anxiety about India’s taxes to fund local amenities date back to the cost burden of store-based retail- The India Love Project was Manjil from Kerala wrote of her direction, despite the happiness of her centuries. The system introduced in ers that have expanded online. Such an launched in October after Tanishq, conservative Jain husband, Sandeep own interfaith marriage. 1990 — a tax linked to assessed rental idea may merit future discussion. The the Tata Group’s jewellery arm, was Jain. The couple met at work and “We have disagreed about values — ran smoothly for a while. But priority today is to ease the business accused of glorifying love jihad, with married in 1998 after overcoming his everything under the sun,” she wrote, the tax rate has soared from 34 per cent rate pressure on retailers and slow the an advert depicting a Muslim woman parents’ resistance. “except religion”. of “rateable” values to more than 50 retail shake-out. Towns and cities need and her pregnant Hindu daughter-in- Many accounts describe protracted per cent, partly to maintain revenues time and space to manage the transi- law. The project began with Ms struggles with families — and long [email protected] after successive governments intro- tion to the high street of the future. DECEMBER 16 2020 Section:Features Time: 15/12/2020 - 19:01 User: dana.prince Page Name: LEADER USA, Part,Page,Edition: USA, 16, 1 Wednesday 16 December 2020 ★ FINANCIAL TIMES 17 Opinion Biden should beware liberal identity politics lured into an unwinnable game of Faced with a system that appears to reverted to Republicans for the down- There should be no trade-off between non-college educated vote. This is in tokenism. He is almost destined to fall block change at every juncture, progres- ballot races. Democrats lost 10 seats in promoting diversity and confronting spite of the fact that his blue collar cre- out at some point with the progressive sives’ frustration will only grow. The the House of Representatives and failed economic fairness. Democrats should dentials were far stronger than Hillary Edward wing of the Democratic party. With the pressure on Mr Biden to drift into iden- to regain a single state legislature. They also pay heed to the remarkably high Clinton’s. Mr Trump made overt racial Senate likely to be controlled by the tity issues to placate the left will be hard would be lucky to win both run-off share of minority votes that Mr Trump appeals to that demographic and tried Luce Republicans, Mr Biden’s only chance to resist. That could include extending Georgia elections next month to recap- received. He took almost a third of the to make suburban voters believe that of passing significant bills will be to affirmative action, backing campus ture the Senate. Hispanic and Asian American vote — Mr Biden would socially engineer multi- strike deals with the few moderate speech restrictions and reinstating In other words, Mr Biden won on and just under a fifth of African Ameri- racial neighbourhoods. The second Republicans and hope that more Obama-era rules on gender identity in November 3, but Democrats lost, and can males. After four years of unapolo- effort clearly failed as suburban voters here is a fine line between leftwing senators, such as Bernie the party is bitterly debating whether getic racism, Mr Trump’s share of the shifted to Mr Biden quite sharply. championing diversity and Sanders and Elizabeth Warren, will see to blame the left or the centre. It is non-white vote went up. Something is But what about America’s blue-collar embracing identity politics. no option but to vote Yes. The challenge for the instructive that in California, where not working for the Democrats. Clearly voters? Perhaps Democrats find it easier In practice, it should be a Whatever emerges from such biparti- no ethnic group has a majority, voters many non-white voters want more from to write them off as racist than to do bright red one. But, as Joe san sausage-making will look like thin Democratic party is went heavily for Mr Biden but emphati- the party than simply being anti-racist. anything about their poverty. But Mr TBiden, the US president-elect, is discov- gruel to the left. Mr Biden’s other avenue whether it can win back cally rejected a measure to allow As one African American Democrat told Biden should not need to make the ering, it is hard to please all your constit- to making his mark will be to do as the state’s public bodies to engage in me: “People living on the South Side of choice. The challenge for the Demo- uents all of the time. much as he can by executive order. white working class voters affirmative action. Yet in Florida, which Chicago are nearly as cynical about cratic party is whether it can win back In the past three weeks, Mr Biden has Here, too, the results are unlikely to sat- Mr Trump won, voters strongly Democrats as the white working class.” white working class voters faster than made good on his promise to unveil “the isfy his base. The US Supreme Court has schools. But it will come with price tags. endorsed a measure to raise the That brings up identity liberalism’s Republicans win over non-white voters. most diverse cabinet in history” — with moved right since Barack Obama’s pres- The most obvious is that it is not good minimum wage to $15. Together these second big cost. About 74m Americans At the moment that is an open question. several big appointments to come. Yet idency and today’s 6-3 conservative politics. Mr Biden got 7m more votes results should tell the Democrats voted for Mr Trump in the highest turn- The fate of Mr Biden’s presidency — and the pressure on him to be even more majority court is likely to look askance than Donald Trump in last month’s elec- to focus on the economic woes that out US election since 1900. To be sure, his party — may rest on the answer. inclusive has only grown louder. at executive moves to regulate carbon tion. But most of those who switched to Americans have in common, rather Mr Biden won with 81m but he failed The danger is that Mr Biden will be emissions and bolster labour unions. Mr Biden for president appear to have than moral grandstanding. to make large inroads into the white [email protected] There is no stock market bubble Martin Wolf Economics The bigger question is whether rock-bottom interest rates will revert to ‘normal’ and, if so, when re stock markets, especially explained in a 2015 paper by Fernando Low prospective returns on bonds Falling real bond yield supports US UK stock prices look cheap given high the US market, in a bubble Duarte and Carlo Rosa for the New York support equities stock prices earnings and low bond yields that is sure to pop? The Federal Reserve. More recently, in the Global annualised real returns on equities and bonds () Equity risk premium (annualised ) relative to government UK equity risk premium () answer depends on pros- Credit Suisse Global Investment Returns Equities Bonds bills and bonds, - pects for corporate earn- Yearbook 2020, Elroy Dimson, Paul Real earnings yield on equities* ings and interest rates. Provided the Marsh and Mike Staunton of the Lon- Real earnings yields on equities* A former are strong and the latter ultra- don Business School estimated the low, stock prices looks reasonable. excess return on world stocks over The best-known measure of market bonds at 3.2 percentage points between Implied equity risk premium value — the “cyclically adjusted price/ 1900 and 2020. For the UK, the excess is Implied equity (dierence) earnings ratio” of Yale’s Nobel laureate, estimated at 3.6 percentage points; for risk premium Robert Shiller — is indeed flashing red. the US, at 4.4 percentage points. One can invert this metric, to show the Are these excess returns in line with - yield: on the S&P Composite index, this what people initially expected? We do Real -year government bond yield Real -year government bond yield - - is just 3 per cent today. The only years not know. But they are a starting point. Since Since Since In the future since 1880 it has been even lower were The premium demanded now might be Source: Dimson, Marsh & Staunton,'Triumph of the Optimists' (Princeton, * The inverse of Shiller's cyclically adjusted price/earnings ratio, expressed * The inverse of cyclically adjusted price/earnings ratio on FTSE , 1929 and 1999-2000. We all know what lower than that sought for much of the ) and ‘Global Investment Returns Yearbook’ (Credit Suisse, ) as a percentage Source: Robert J Shiller, Refinitiv, FT calculations using Shiller's method Source: Robert J Shiller, Bank of England, FT calculations happened then. past 120 years. Corporate accounting Another price is also exceptionally has improved greatly. So, too, has macr- historical average. Estimates of Shiller’s Germany and 4 percentage points in questions are whether real interest rates bonds will be a terrible investment. But low by past levels: interest rates. The oeconomic stability — at least by the metric do not exist for such lengthy Japan and the US. The UK market looks will jump, and how soon. it also depends on why real interest short-term nominal interest rate is near wretched standards of the first half of periods for non-US stock markets. But extremely cheap today, perhaps Many believe that ultra-low real rates rates rise. If they were to do so as a prod- zero in the US and other high-income the 20th century. Moreover, the ability estimates can be made since the early because of the Brexit lunacy. Japan and are the product of loose monetary poli- uct of higher investment and faster economies. US short-term real interest to hold diversified portfolios is far 2000s. The cyclically adjusted earnings the US look well valued, but not, by his- cies over decades. Yet, if that were right, growth, strong corporate earnings rates are about minus 1 per cent. Real greater now. Such changes suggest the yield is currently 7.6 per cent on the torical standards, overvalued. we would expect to see high inflation by might offset the impact of the higher yields on US 10-year Treasury-inflation- risk premium, often believed to be FTSE 100, 5.4 per cent on the DAX 30 Further support for the rationality of now. real interest rates on stock prices. If, protected securities are minus 1 per excessive, should have fallen. and 4 per cent on the Nikkei 225. At cur- the US market today is that 55 per cent A better hypothesis is that there have however, savings rates were to fall, per- cent. In the UK, yields on similar securi- The Credit Suisse study estimates rent real interest rates on long-term of the increase in the S&P 500’s market been big structural shifts in global sav- haps because of ageing, there would be ties are about minus 3 per cent. (See aggregate real returns on stocks and bonds, the implied equity return pre- value over the past 12 months is due to ings and investment. Indeed, Lukasz no such offset, and stock prices might charts.) bonds in 23 markets weighted by mar- mium is thus over 10 percentage points gains in the information and technology Rachel of the Bank of England and Law- become significantly overvalued. Desired returns on equities ought to ket capitalisation at the start of each in the UK, over 7 percentage points in sector. This makes sense, given US dom- rence Summers of Harvard argued in Some major stock markets, notably be related to the returns on such sup- year. It shows, interestingly, that the inance in these areas and the technolog- Brookings Papers 2019 that real eco- the UK’s, do look cheap today. Even US posedly safe assets. This relationship is excess return of equities since 1970 have ical shift of 2020. We should also note nomic forces have lowered the private stock prices look reasonable, valued known as “the equity risk premium”, been very low and since 1990 negative. that real interest rates below zero make sector’s neutral real interest rate by 7 against the returns on safer assets. So which is the excess return sought on But this is because of very high real Equity investors might future profits more valuable than prof- percentage points since the 1970s. will the forces that have made real inter- equities over the expected returns on returns on bonds, as inflation and real its today, in terms of present value. Will these structural, decades-long est rates negative dissipate and, if so, government debt. This premium cannot interest rates collapsed. Looking ahead, now be demanding a much Looking through the short-term impact trends towards ultra-low real interest how soon? These are the big questions. be measured directly, since it only exists it estimates the prospective excess lower risk premium than of Covid-19 makes sense. rates reverse? The answer has to be that The answers will shape the future. in investors’ minds. But it can be return of equities at 3.3 percentage Given the interest rates, then, stock real interest rates are more likely to rise inferred from past experience, as points. This is the same as the long-run in the past 120 years markets are not overvalued. The big than fall still further. If so, long-term [email protected] Would it be better to divert early booster shots to the unprotected? none in a raging epidemic. Could veer- away,” Mr Gottlieb told USA Today doses languish for weeks in fridges, is or third dose on day 56. Intriguingly, in error that dogged the Oxford/Astra- SCIENCE ing off-script in the rollout of Covid-19 last week. “The reality is that one dose also a risk. the Oxford/AstraZeneca vaccine trial, Zeneca trial was unexpectedly associ- vaccines also be in the public interest? is partially protective. I just fund- There is another point in Mr Gottlieb’s some volunteers in the under-55 sub- ated with better results. Scientists have Anjana The Pfizer/BioNTech vaccine, the first amentally disagree with [saving half the favour: there is no firm evidence that group showing the highest efficacy had not ruled out mixing and matching Ahuja to be deployed in the US and UK, offi- supply for January].” boosters must be timed precisely to be their second jabs as long as eight weeks first and second doses from different cially requires two doses given 21 days The vaccine is 52 per cent effective efficacious. While second doses dramat- after the first. Routine boosters for vaccines, depending on availability. apart. ically enhance protection, dosing inter- other diseases are also put off for mult- Volunteers who drop out of clinical But, instead of issuing first doses and vals are not set by any immutable com- iple reasons — holidays, clinic closures, trials after a first dose of one Covid-19 reserving supplies to give boosters later, Leaving vulnerable people mandments of vaccinology. The WHO delayed deliveries, forgetfulness — vaccine in order to receive a different, n 2016, as a yellow fever outbreak some people advocate dispensing all vaccine tracker, for example, shows a without efficacy being a worry. approved jab, will be a fascinating crept closer to major cities in doses now and giving boosters when fur- unvaccinated while variety of dosing schedules, mostly As Professor Altmann concludes: “If cohort to watch. Angola and the Democratic Rep- ther supplies allow. In the US, this second doses languish modelled on past convention. I were an NHS adviser or a vaccine There might be just enough scientific ublic of Congo, the World Health option means 40m would get a first dose “It’s like a random number genera- producer running a huge logistical leeway, and encroaching danger, to rea- Organization took a calculated of the Pfizer/BioNTech vaccine, instead in fridges is also a risk tor,” says Danny Altmann, professor of operation, I’d probably want to stick sonably discuss bending the rules to Igamble. of 20m receiving two doses. The UK is immunology at Imperial College Lon- to protocol. But if you ask me: does deploy all Covid-19 vaccine doses now. Faced with vaccine shortages, it currently rolling out 800,000 doses, after the first dose, rising to 95 per cent don. “Some doses are 28 days apart, the timing of the booster really, really Christmas approaches. Infection rates recommended the splitting of doses. with another 4m due by the end of after the booster. while others are 21 or 14. That doesn’t matter all that much? Probably not. In are rising. Hospitals are filling up. More More than 7m children and adults in December. His view is that immediate deploy- reflect the fundamentals of the immune vaccinology, when push comes to shove, vaccines are coming next year. Kinshasa, among others, received only a The idea was floated recently by Scott ment maximises the health benefits of a system but a tweaking of the trials that if we’re trying to save lives we some- Mr Gottlieb’s approach of emptying fifth of the usual dose. That fractional Gottlieb, the former head of the US Food life-saving intervention. It is not a risk- gave slightly better data. You could times break protocol, as happened with the armoury now is a gamble — but so is amount, researchers later found, and Drug Administration who now sits free strategy: unforeseen delays to sup- probably merge them all and come out yellow fever.” holding back half of the ammunition induced good levels of protective anti- on the board of Pfizer. plies next year could hamper the rollout with one common protocol that would The coronavirus pandemic also shows when other cavalries are on their way. bodies that were still detectable a year “I feel very strongly that we should get of boosters. Still, leaving vulnerable work pretty well for all of them.” A that, in extremis, vaccinology conven- later. A year of protection is better than as many shots in arms as possible, right people unvaccinated while second handful of trials have offered a second tions can be challenged. The dosing The writer is a science commentator DECEMBER 16 2020 Section:Features Time: 15/12/2020 - 18:44 User: dana.prince Page Name: COMMENT USA, Part,Page,Edition: USA, 17, 1 18 ★ FINANCIAL TIMES Wednesday 16 December 2020 H&M/Inditex: still standing Inditex, the world’s biggest retailer, has managed to shrink inventories, helping it control costs. But like Swedish fashion retailer H&M, it retains a strong physical presence and has a proliferation of brands. Share prices of the two have failed to keep pace with online stars such as Asos. Shrinking stock piles Proliferating brands Twitter: @FTLex Inditex inventory growth* (year on year, ) Total number of stores Inditex: Massimo Dutti Stradivarius Zara Zara Bershka and malignant expression will be as Home Tech regulation: grey as ever in the wake of these latest Blade: speech impediment rules. But the rapid scaling-up of Pull&Bear up in the air enforcement starkly demonstrates how UK and EU tech regulators have badly public goodwill towards Big Tech “The city seen from the Queensboro barrelled into the fight between free has collapsed. Bridge is always the city seen for the speech and online protection with a Oysho Uterque first time, in its first wild promise of all Falling behind pure ecommerce retailers crude plan to make Big Tech clean up Share prices, in terms (rebased) Zara Kids the mystery and the beauty in the content. The UK is taking aim at world.” So goes F. Scott Fitzgerald’s everything from social media networks China stocks: H&M Inditex Asos H&M group: Weekday description of arrival in Manhattan in Fast Retailing Gap to dating sites while the EU focuses on Darwinian selection H&M COS The Great Gatsby. very large platforms. Both plans are so Crushing traffic and slow trains have broad it is hard to see what they will As one door closes, another door shuts. hampered such romantic musings. Monki achieve. Hundreds of Chinese companies Perhaps a helicopter ride would Reducing illegal and harmful content trading in the US face delisting in the other recapture the magic. Yesterday, luxury online is laudable. Tougher moderation next few years. Congress legislated to stores chopper service Blade said that it is necessary and feasible. None of this, force groups to comply with US Jan Apr Jul Oct & Other Stories would merge with a blank cheque however, is new. accounting rules this month. But a Sources: companies; Refinitiv *Q is adjusted for provision H&M as at Nov , Inditex as at Oct vehicle at a $450m enterprise Prodded by advertisers and secondary listing in mainland China valuation. Its business, best known for regulators, Facebook has been may not be the back-up CEOs hoped. For retail in 2020, durability is retail chain Arcadia, for example, they made online in 2022, managed just ferrying the glitterati around the Big spending more on moderation since The Shanghai and Shenzhen stock accomplishment enough. Inditex and are able to switch what hangs on the 14 per cent or €3.9bn last year; H&M Apple, has been hammered by Covid- the 2016 US election. In third-quarter exchanges are tightening regulations. H&M, stalwarts of fast fashion, are racks at the drop of a well-turned hat. does not even split it out. That means 19. Even before the pandemic it was earnings it reported that its headcount Proposed revisions will make delisting among the survivors. They bear the They also have a better handle on performance has lagged behind the forecasting only $50m in revenue this had increased by nearly a third on the of companies much easier. Businesses scars: sales tumbled 10 per cent on a sustainability trends. Customers in likes of pure ecommerce hawker year. But Blade says that it can reach a previous year. Expenses rose 28 per whose market values fall below a fixed constant currency basis in the past China can rent clothes from H&M’s Asos during the pandemic. whopping $875m of sales in six years. cent, outpacing the increase in sales. threshold of about $46m for 20 trading quarter. COS for a monthly subscription; those Another one-time strength could Like many reverse mergers, Blade is The company’s operating margin has days will be in the line of fire. Shoppers across the globe were in Stockholm can pay to borrow a party yet turn to weakness. The two selling its valuation partly on a fallen from 44 per cent in late 2018 to Delistings have been relatively rare hobbled by a new set of lockdowns in frock. fashion empires have proliferated promised technology shift that would 37 per cent. Expect it to lose another in China. Just over 120 companies have the three months to end November. Cost discipline and inventory control brands just as manufacturers of change the supply side part of the few percentage points in 2021. quit Chinese bourses in the past Sales at Sweden-based H&M fell to mean cash flows are mostly in better consumer goods are pruning ranges. equation. The company’s goal is to take The threat of onerous fines could decade, despite a slew of initial public SKr52.54bn ($6.26bn); Inditex order too: Inditex’s inventory has fallen Both have segued into home advantage of a breakthrough it claims speed up the process. If content is not offerings. As a result, there are more dropped to €6.05bn. The Spanish year on year in each of the past six accessories. These have been joined is on its way: electric vertical take-off policed properly, UK regulator Ofcom than 4,100 listed companies, similar to retailer, which provided a fuller set of quarters. by more upmarket brands — Inditex’s and landing technology (eVTOL) proposes fining companies £18m or 10 the number in the US, where delistings numbers yesterday, cut costs but still Yet no retailer is infallible. The two Massimo Dutti for one, H&M’s Arket vehicles. These would revolutionise per cent of global turnover. The EU average upwards of 200 a year. suffered. Net income dropped an still have massive physical footprints, for another — and a clutch of fellow short and medium distance air travel. envisages penalties of up to 6 per cent. Some Chinese stocks have long adjusted 13 per cent to €866m. including in some of the priciest — and diffusion stores. But catering to But Blade also projects that it can hit The impact depends on whether records of accounting and governance The two have a number of now emptiest — UK high streets. Online different segments matters less when $400m of revenue in 2024 before fines target an individual business unit, issues. Weeding those out will help advantages over peers. Unlike sales remain relatively small. Inditex, board directors, bankers and eVTOL. The appeal is speed and such as Facebook’s WhatsApp, or the investors in the long term. It is part of Topshop, a brand of troubled UK targeting a quarter of all sales to be students are all wearing hoodies. convenience. A Blade ride from JFK entire group. WhatsApp would be Beijing’s wider market reforms, which airport to a heliport in Manhattan liable to pay out very little. Under a have included a crackdown on corrupt takes just a few minutes and costs less worst-case scenario, Facebook could credit rating agencies and lenders. than $200. The company says that of face combined fines of more than Yet the process will be fraught with number of corporate defaults means artwork, audio, marketing, translation, shareholder value. As much as 7 per 27m people flying in to NYC airports $13bn on $83.5bn of expected sales this difficulties. Investment in China has more are likely to make the watch list cultural adaptation and even some cent of Keywords’ shares were on loan nearly a fifth would be interested in year. surged this year, pushing the equity for removal from the markets. development work is increasingly to short-sellers in February. Now it is travelling to Manhattan by air. That is unlikely. Ofcom’s biggest fine market value to more than $10tn. outsourced. For example, Chicago- just over 2 per cent. Blade only has a few dozen to date has been a £50m charge to Funds from foreign investors have based High Voltage, which Keywords There are reasons beyond financial employees. It has created the brand but Royal Mail, the UK’s stolid postal increased two-thirds to record levels. just acquired for up to $50m, worked engineering for the flurry of deals. outsources flying and associated capital service. The bark of watchdogs is worse Foreign investment in the local Keywords Studios: under instruction from Epic Games on Keywords should be able to sell more investment to other specialists. Its than their bite. equity market has historically held the game theory developing aspects of Fortnite. services by expanding its capabilities focus is on dense, affluent markets in The second threat — that non- risk of sudden market suspensions, High Voltage is Keywords’ second- and geographical reach. Bigger projects the north-east and California, though it compliant services could be blocked leaving value trapped or wiped out. Selling picks and shovels is always the largest deal and brings its tally of should be easier to handle. also has a Mumbai to Pune route. The from the UK — would spur a backlash Trading of more than half of all 3,000 best way to profit from a gold rush. The acquisitions close to 50. The £1.8bn The post-acquisition departure of company’s focus is on routes where from users. The plan, meanwhile, listed local stocks was suspended hit-or-miss video game business is a market capitalisation company has founders is often a reason roll-up plays transportation systems are broken. feebly fails to define legal but harmful during a sell-off five years ago. case in point. Providing technical taken advantage of its highly rated disappoint. But three-quarters of those Even without eVTOL, America’s content. The risk of being blindsided will rise. services to hundreds of developers and paper — trading on a lofty EV-to-ebitda who sold to Keywords have stayed. dysfunctional transit policies ensure Content, privacy and competition The reforms include faster suspensions publishers is a steady way to tap the multiple of 27 times — to expand Keywords’ valuation is off-puttingly demand for any service that are three prongs of regulatory interest of suspect companies. They may not sector’s rapid growth. That is one geographically and into new services. high. But it leads in a niche market circumvents public transport. in tech. The rolling clampdown has even be relisted before a final delisting reason shares in Dublin outsourcer Such a “roll-up” strategy rings alarm growing faster than the games industry already curbed M&A, increased costs decision is made, which would permit Keywords Studios are up 20-fold since bells for some investors. Multiple itself. To justify its valuation, it must go Lex on the web and forced companies to reveal more an exit at a rock-bottom price. it joined London’s Aim in 2013. acquisitions make it harder to track on buying small businesses cheaply. For notes on today’s stories data. It is a fragile time for these well- Most work in games production is underlying progress. Research suggests With just 5 per cent of a fragmented go to www.ft.com/lex The intersection between free speech intentioned reforms. A growing still done in-house. But testing, that on average, roll-ups destroy sector, that does not look in doubt yet. CROSSWORD No 16,661 Set by MONK ACROSS 7 Perhaps Clapton’s earpiece regularly dropped (4) 8 Sudden front invisible when circulating (10) 10 Setter getting over clamour to engage in affair (6) 11 Made dim sum for starters, cubed or otherwise (8) 12 Pat Helen’s bum – she’ll never forget! (8) 13 Marriage vow by first 20th century linguist? (6) 15 Circumventing grandma, bare bonkers (woman and man) breed (8,5) 18 God angry, evidently opening up lost soul 20 Weekly deliveries run after stock problem is tackled (8) 22 Uninvited relative, stabbed by gangster, died (8) 24 Pop over – call round to see old primate (6) 25 Bad if out, since likely to spread (10) 26 Unintroduced jerk causing irritation (4) DOWN 1 Announce chatter about sullen old revolutionary (10) 2 Finally, famous music producer and techie giant make “Meat Loaf in the US” (8) 3 Nepali carpet taken up by Asian ruler, JOTTER PAD briefly (6) 4 Prostitute I caught with a Swede, maybe? (8) 5 Fake subscription rejected when stopping postal order (6) 6 Party a lot, audibly so (4) Solution 16,660 9 Fresh food growth, farmer missing first half ab initio (4,3,4,2) '(&25 &27721%8' 2 8 ( 2 + 5 < ( 14 Suspect dodgy canteen food? (10) 3$5$*21 5(''((5 16 Fail to keep up with external ( 5 $ & 2 , 2 appointment, getting lonely (8) <(//2:%817 ,1* 7 ) ( 5 $ 1 $ 17 Drainage transformed shrub (8) 23$/ '2:15,*+7 19 I borrow without any other European 8 9 0 $ 2 < 2 2 &+25 ,67(5 0225 capital being put down (6) + 8 1 . & ' < 21 Scattered boxes end in waste (6) 675$ ,*+7)/86+ 7 0 ( 2 6 ( ( 23 Opening partly round and square (4) 25$7 ,21 587/$1' 1 ' 6 1 & 2 5 * (;21(5$7( 0,75( DECEMBER 16 2020 Section:FrontBack Time: 15/12/2020 - 18:44 User: jeremy.wright Page Name: 1BACK, Part,Page,Edition: EUR, 18, 1 FT-Nikkei Special Report Data destiny Your predictions Martin Wolf Global migration, A woman in the ‘The defeat of Donald fertility, life White House? Yes, Trump gives the world expectancy and but greenhouse breathing space. But the politics — our gas emissions are challenges are still huge’ near future unlikely to fall visualised globally over the in charts next five years Wednesday December 16 2020 www.ft.com/WorldAhead The world ahead A special report on the forces that will shape our lives over the coming five years “ Each category of online activity produced only one or two champions, and an emerging oligopoly of digital powers was taking shape ” Darrel Rees LETTERS FROM THE EDITORS An alliance for gold-standard journalism A truly global business media partnership he world has experienced In many countries, the social ive years have passed since nations. Nikkei chronicled how Asian seismic change since the contract has been challenged during Nikkei and the Financial countries deployed digital contact Nikkei-FT deal was the pandemic. Young people, women Times became partners. tracing systems and promoted mask- reported in our pink pages. and the economically disadvantaged Together, we have strived to wearing, attracting strong attention Back in 2015, Donald have borne a heavy burden. This create a truly global media from our readers in Europe and the US. TTrump had not been elected, the Brexit pandemic year saw outrage over racial Fgroup focused on the world economy Of course, this is not the only crisis we vote had not taken place, talk of a new injustice reach a boiling point, with and everything that affects it. face. The world stands at a crossroads. cold war with China was wildly historic protests in the US and around Given the turmoil humanity is Some voices cry out that capitalism has premature and a global pandemic was the world. Corporations too have had to facing, there is more need than ever for reached its limits, while many worry unimaginable. think harder about their purpose, and high-quality global news and analysis. that the foundations of democracy have As we celebrate the fifth anniversary take in the environment and social The coronavirus pandemic has put our been shaken. People are angry at Roula Khalaf of our alliance, we must also reckon impact of their businesses. The next Tetsuya Iguchi commitment to that goal — and our overconcentration of wealth. These with the impact of the health and five years will test political and business ability to carry it out — to the test. disparities will inevitably widen. But Editor, Financial Times economic crisis and consider the big leaders’ stated commitments to a new Editor-in-chief, Nikkei As infections spread rapidly, FT why has growth slowed? Underlying this trends of the future. What have we way forward and a cleaner planet. reporting provided must-read insights is the transition from a manufacturing learned from the coronavirus crisis? During a time of disruption, the on the medical and economic response economy centred on the production of What trends have been accelerated? global media alliance between Nikkei to the outbreak. It provided in-depth goods to a digital one that creates What will the world look like in five and the FT has grown stronger. coverage of how companies reeled in wealth based on data and knowledge. years’ time? Together with Nikkei, the FT is in an the face of an unprecedentedly abrupt We at Nikkei and the FT are This report will help to answer these unparalleled position to deliver quality economic slowdown, and the mounting committed to gathering and collecting questions. It places the rise of China, journalism that will guide our readers, concerns about job insecurity. At the the global information and wisdom climate change action and tech inform businesses and, always, same time, Nikkei reported — via its necessary to provide solutions for disruption high on the policy agenda question and hold those in power to English-language publication, Nikkei escaping from this predicament. Our over the next few years. account. Asia — on the swift reaction by Asian challenge continues. An end to the old certainties: FT journalists on life in 2025 From banking and tech to human labour, consumer behaviour and the energy markets, our writers on why many trends we take for granted will disappear a leading role: entities such as Ant factor: what regulators do. By 2025 about the inscrutability of AI and its of emerging digital “champions”, dilut- the scope for newcomers turned out to Finance Financial have already taken an early they will be scrutinising the AI black attendant risks could be the source of ing some of the power of Big Tech. be greater than before. A generation of Gillian Tett lead in AI-enabled finance, helped by boxes with increased vigilance, and the next financial shock. Amazon and Google’s moves to spin users brought up on digital services was Markets go up and the scale of the country’s databases. possibly alarm. In theory this new off their cloud computing businesses led hungry for new experiences — whether down. So do the for- But Japanese and American banks world should deliver benefits: greater to a new generation of enterprise tech that meant communities inside gaming tunes of financial will be racing to catch up by 2025. efficiency, speed, customisation and Technology companies. Zoom was one of a handful worlds, or a wider suite of communica- companies. But here is Organisations such as Amazon are cheaper costs of capital. In practice, it Richard Waters that capitalised on strong demand dur- tions apps to reflect different aspects of one prediction: by 2025 likely to be flirting with AI enabled may also increase industry concentra- The pandemic gave ing the pandemic to become broader their lives. Top engineering talent artificial intelligence will be reshaping finance too. The biggest competitive tion, embed social biases and — most digital services a platforms for communication and col- seeped from the giants, feeding this global finance, sparking a competitive battle may be taking place between alarmingly — create feedback loops big lift that proved laboration. shift. battle between companies and regions finance and tech groups, rather than that regulators will struggle to police to be lasting. But In the consumer internet, once regula- We can look forward to a more diverse who want to dominate this new sphere. just between banks. given opaque algorithms. the surprise in 2025 tors blocked the handful of giants from digital world by 2025. But the “winner China will almost certainly be playing Who wins will depend on another By 2025, regulators’ growing concerns was the wider range buying or killing nascent competitors, Continued on page 5 DECEMBER 16 2020 Section:Reports Time: 11/12/2020 - 19:38 User: joe.russ Page Name: TWA1, Part,Page,Edition: TWA, 1, 1 2 ★ FINANCIAL TIMES Wednesday 16 December 2020 The World Ahead Darrel Rees Five forces to define China’s power is rising our post-Covid future in an unstable world Debt has soared in the Covid- global economic crisis Global debt, as a of GDP, by sector Households Non-financial corporates Financial corporates Government Covid- pandemic begins Financial crisis Outlook Martin Wolf Trade Japan and Europe sets out accelerating must step up to stabilise trends, from populism the global order. to deglobalisation Source: Institute of International Finance By Ryosuke Harada © FT China’s ambitions will determine the state of the world — Getty Images ovid-19 has accelerated the ratio of global gross debt to world output grew roughly in line with world output, he scourge of the power, which will drastically reduce It clearly explains why so many poor world into the future. Here jumped from an already high 321 per instead. This slowdown was due to the coronavirus has exposed CO2 emissions, is fast approaching. white Americans support president are five powerful forces that cent at the end of 2019 to 362 per cent at exhaustion of opportunities, the glaring weaknesses in Current market leaders will not Donald Trump. With the evaporation of were at work before the end of June 2020. Such a huge and absence of global trade liberalisation capitalism and democracy necessarily be winners in the future. manufacturing jobs in the rustbelt Covid-19, that intensified sudden jump has not previously and rising protectionism. Covid-19 all over the world. Employment will also see rapid states, workers have been driven into Cduring the pandemic and will still affect occurred in peacetime. reinforced these trends. A marked TWith wages for some stagnating and a change. Carl Benedikt Frey of Oxford low-paying jobs. At the other end of the the world in 2025, and far beyond. Fortunately, government debt is now result has been a desire to shift supply growing digital divide, divisions in university once predicted that half of spectrum, those who work for big tech First, technology. The march of extremely cheap, with nominal and real chains back home, or at least out of societies, and the gap between the haves the world’s current jobs would companies — like Google, Apple, computing and communications interest rates on the sovereign debt of China. and have nots, have never been starker. disappear due to artificial intelligence. Facebook, Amazon and Microsoft — are technology continues to reshape lives high-income economies at low levels. The crisis is also reinforcing While western countries flounder in In his recent book, The Technology highly paid. This gap continues to and the economy. Now, broadband But their debt overhangs may cripple regionalism, notably in Asia. A the face of the pandemic and face Trap: Capital, Labor, and Power in the Age widen. communications, together with Zoom parts of the private sector for years. noteworthy recent example has been challenges to their democracies, China of Automation, he points out that The same MIT report attributes and similar videoconferencing Fourth, deglobalisation. The plausible agreement on the Regional has pulled ahead of the game by innovation has two aspects — it either Japan’s long-term stagnation to the fact software, has made it possible for a huge future is not that international Comprehensive Economic Partnership, containing the disease through substitutes for labour or complements that it has clung to an employment and number of people to work from home. exchange is going to die. But it is likely to which brings together the 10 members technology and authoritarian rule. it, thus creating new jobs. tax system intended for mass By 2025, it is likely that some, possibly become more regional and more virtual. of Asean with Australia, China, Japan, It is not hard to imagine that in five History bears this out. Spinning and production in its high-growth period. most, of this shift from offices will have After the global financial crisis, trade New Zealand and South Korea. years’ time China’s ambitions and weaving machinery in the early stage of Even now, 30 years later, the country reversed. But it will not do so ceased to grow faster than world output, Finally, political tensions. One technological progress, particularly in the Industrial Revolution drew rural has yet to fully climb aboard the digital completely. People will be able (and as it had done in previous decades, but dimension has been a decline in the mitigating climate change, will home manufacturing into urban train, although there are fewer concerns credibility of liberal democracy, the rise determine the state of the world. about employment compared to other US-China trade fell during the Trump presidency of demagogic authoritarianism in many One way to foretell that future is, major economies. countries and the rising power of improbably, to take a look at the The World Ahead online Against such an unstable global China’s bureaucratic despotism. distribution of this year’s Beaujolais backdrop, China is growing as a Another is the rise of populism in core Nouveau. The sales of the red wine superpower. Even after Democrat Joe western countries and especially the US. started around the world on November Biden is sworn in as president in Imports from China as While the victory of Joseph Biden 19. In Japan, where the first arrival of the January, tensions between the US and a of total US imports represents a defeat for populism, season is celebrated every year, the China will continue as the two countries president Donald Trump’s large share of volume of imports has dropped to less vie for global dominance. Donald Trump the vote shows it has not disappeared. than half their level 30 years ago, when Trump’s tenure as president has eroded presidency Yet perhaps the most important of the Japanese consumption first took off in a American leadership of the free world. geopolitical developments has been bubble economy. Whether it can regain lost ground under rising tension between the US and In years past, Japanese media outlets Biden remains to be seen. Visit ft.com/worldahead Imports from US as China. This is forcing countries to take reported the arrival of aircraft loaded The military balance between the US to read about what Nikkei’s China a of total Chinese imports sides. Again, Covid-19 has accelerated with Beaujolais Nouveau from France. and China in the Taiwan Strait is also the drift apart. Mr Trump blamed China But this year the “eco-Nouveau” wine bureau chief Tetsushi Takahashi significantly different from the 1990s, for the pandemic. Even if he is gone, was transported by train from France to describes as ‘a future in which when it was overwhelmingly favourable many in the US share this point of view. Shanghai, a journey of some 10,000km, China no longer needs to rely on for the US. So where, given all this, might the before being ferried to Japan by ship. the world but the world cannot As the US struggles to rebuild its world be in 2025? With luck, economies Carbon dioxide emissions by rail continue to spin without China’ reputation and heal its own divides after Source: IMF Direction of Trade Statistics will have largely recovered from the transport are one-twentieth of those by the chaotic and disruptive Trump pandemic. But most will be poorer than air, while the cost of rail is one-third that presidency, Japan and Europe must step allowed) to work away from the office. they would have been without it. of air transport. The bottles featured a factories, leading to the machine- in to shore up the global order and free Inevitably, this will not only include Yet perhaps the biggest challenge will sticker proclaiming the wine’s smashing Luddite revolt. trade arrangements. workers in their home countries, but ‘While the Biden victory demand a global co-operation that will environmentally friendly credentials. On the other hand, the invention of Japan is a central member of both the workers sourced from abroad, too, represents a defeat for not exist. Sustaining a dynamic world China isn’t just a stop in the wine’s the steam engine and the era of the Ford Trans-Pacific Partnership trade usually on lower salaries. The result is economy, preserving peace and supply chain. Its place in what was Model T brought mass production and agreement, of which the US and China likely to be a destabilising increase in populism, Trump’s large managing the global commons were previously mostly a France-Japan mass employment, creating an affluent are not members, and the Regional what might be called “virtual share of the vote shows it always going to be hard. But an era of business arrangement has grown middle class typified by the Golden Comprehensive Economic Partnership immigration”. populism and great power conflict will massively. Despite the pandemic, Japan Fifties in the US. trade pact in East Asia, to which the US Second, inequality. Many higher-paid has not disappeared’ make this far more difficult. remains the biggest importer of A recent report by the Massachusetts does not belong either. The fortress of office workers have been able to work We are in an era of turmoil. The Beaujolais Nouveau. But China is Institute of Technology cites the free trade cannot be protected without from home, while most others could pandemic has underlined this, but not already the world’s third largest importance of education and the active involvement of Japan and not. In western countries, many of those created it. The defeat of Donald Trump importer of wine overall. investment in human resources and Europe. most adversely affected are also gives the world breathing space. But the On a bigger scale, the coronavirus warns that in the absence of a strategy, members of ethnic minorities. challenges are huge. In 2025, many of crisis is forcing a review of societies and jobs will be lost and divisions in society The writer is senior executive editor at Meanwhile, many of the those already them will still be there and, in all economies, a situation labeled the Great will widen. Nikkei successful and powerful have prospered probability, even more so. Reset by the World Economic Forum. mightily. When it comes to the environment, the The likelihood is that the inequalities Minorities, women, young people and the less-educated have acceleration of technological progress as exacerbated in the pandemic will not been more likely to lose their jobs businesses undergo digital have reduced by 2025. The forces that US job losses by ethnicity, gender, age and education ( ) transformation will also reduce have entrenched it are too powerful. Great Recession ( - ) Covid- (Feb to Sep ) emissions. Modest amelioration is the most one can Excluding the US, Japan has lagged - - - - -- - expect. This, in turn, suggests that the major developing countries in fulfilling populist politics of the recent past will White the Paris climate pact. But Prime Black Women continue to shape politics in 2025. Hispanic Minister Yoshihide Suga declared in Third, indebtedness. Aggregate Ethnicity and sex White October that Japan will be carbon- indebtedness has grown almost Black Men neutral by 2050. As Japan can no longer everywhere over the past four decades. Hispanic rely on nuclear power in the wake of the Whenever crises have interrupted the - 2011 earthquake, innovation will be private sector’s ability to borrow, - crucial to turning renewable energy into governments have taken up the slack. Age - stable power sources to achieve the This happened after the global financial - 2050 target. crisis and again during Covid-19. Makers of automobiles, the biggest The pandemic has dramatically Less than high school consumer durable of 20th century increased borrowing by private and Education College degree or civilisation, also have no choice but to public sectors. According to the higher adapt. The transition from gasoline- Sources: BLS; Pew Research Institute for International Finance, the fuelled vehicles to electric and hydrogen Lower-paid work has supplanted manufacturing jobs in many nations — Bloomberg DECEMBER 16 2020 Section:Reports Time: 11/12/2020 - 19:00 User: conor.sullivan Page Name: TWA2, Part,Page,Edition: TWA, 2, 1 Wednesday 16 December 2020 ★ † FINANCIAL TIMES 3 The World Ahead The shape of the age to come The rise of Generation Z Increasing life expectancy, lower fertility rates and changing migration How to read population pyramid charts Interpreting shapes patterns mean demographic change is inevitable. Most countries will have Women older populations in the decades ahead, but some will age much more Age Colour denotes generation: Youthful Aged living longer rapidly than others than men (Other) Silent generation (born - ) Managing the economics of demographic change — from early years care Boomers ( - ) through to retirement — is a challenge that will increasingly vex ‘Generation Gen X - Z’ and other cohorts that will be part of very dierent population structures in Millennials ( - ) the middle of the century Gen Z ( - ) Male Female Brazil India China Nigeria South Africa UK Italy USA Japan South Korea Age Age Age Male Female Age Share of population by age and sex () Sources: UN World Population Prospects ; Pew Research Center Democratic divergence Behind the ‘surge’ in natural disasters The proportion of people Natural disasters linked to Change in dissatisfaction with democracy (from , in percentage points) Annual number of reported natural disasters (global, by category) who are dissatisfied with climate change — flooding, democracy has grown by Extreme drought, wildfires and English-speaking democracies US around ten percentage points temperature extreme weather — are being have experienced increasing Drought to recorded with greater dissatisfaction with democracy Wildfire frequency than ever before Democratic disillusionment has grown most notably in Japan is an Japan However, the world is also developed, English-speaking exception to the Australia being measured in countries, where it has Greater trend in Asian Extreme weather ever-increasing detail, surged since the global dissatisfaction democracies UK meaning these historical financial crisis Canada total comparisons also highlight recorded the under-reporting of past By contrast, citizens of many events in floods events as much as they Asian democracies have reveal trends of today Flood alone successfully avoided the in malaise aecting other parts As a result, the real value of of the world this chart lies in the data that Less - will be added to it in the Earthquake dissatisfaction years that lie ahead, Taiwan providing crucial context on Landslide - South Korea how well humans are looking after the environment that Philippines Volcanic activity sustains them Source: Roberto Foa, Centre for the Future of Democracy, Cambridge university Source: Our World In Data Brexit: the international winners and losers Shifting patterns of global trade The UK left the European Union on January , but a negotiated transition period means it remains in the EU’s customs union and single market until the end of the year. Despite lengthy and diicult negotiations on a trading relationship from January , with both 'hard' (no 2000 deal) and 'soft' (negotiated deal) outcomes on the table, one thing seems certain: the net A year before China’s entry into the economic losers of Brexit are in Europe, while the net winners are set to be those far away from World Trade Organisation, the the bloc European Union and the US were Net Net Estimated annual per capita impact () the world’s primary exporters, with loss gain Japan enjoying regional dominance - - - - in south east Asia and Australasia UK Hard Brexit Soft Brexit Ireland Luxembourg Norway Netherlands The UK and Ireland are Iceland set to experience the Switzerland greatest economic impact Denmark Belgium Sweden Largest supplier France of goods among: Germany Finland US Austria EU Malta Italy China Spain All European nations are set to Japan Portgual experience a negative No data Cyprus Slovenia economic impact Estonia under both scenarios 2019 Czech Republic Greece China’s surging exports have ended Slovakia Japan’s regional dominance. Large Lithuania swaths of the Middle East, Africa Latvia and even South America have also Croatia Hungary fallen under Beijing’s sphere of Poland influence, disrupting global trade Romania patterns of the second half of the Bulgaria th century India Mexico Russia China Turkey Brazil Chile South Korea Japan Canada New Zealand The net beneficiaries Australia of Brexit are all US Israel outside Europe - - - - Source: Bertelsmann Stiftung, Source: IMF Data journalism: Alan Smith DECEMBER 16 2020 Section:Reports Time: 14/12/2020 - 13:41 User: neil.way Page Name: TWA3, Part,Page,Edition: TWA, 3, 1 4 ★ † FINANCIAL TIMES Wednesday 16 December 2020 DECEMBER 16 2020 Section:Reports Time: 11/12/2020 - 16:36 User: sophie.horton Page Name: TWA4, Part,Page,Edition: TWA, 4, 1 Wednesday 16 December 2020 ★ FINANCIAL TIMES 5 The World Ahead An end to certainty: Nikkei writers on the world of tomorrow Technology Darrel Rees life in 2025 Kazuyuki Okudaira SoftBank chief Masayoshi Continued from page 1 Son, who has gone takes most” dynamic in most markets from investing in still holds: each new category of online personal computers activity produced only one or two to the internet and champions in the past, and an emerging then mobile phones, oligopoly of digital powers is taking now says it’s “a com- shape. pany investing in the artificial intelli- gence revolution.” After suffering defeat over his invest- Labour ment in WeWork, Son has continued to Sarah O’Connor put money in areas where he expects AI In 2025, the world of to play an increasingly important role, work will be more from transport to healthcare. flexible and inclu- The word vertical is now often heard sive for some of us, in reference to a specific industry. and more brutal, Google is one of the companies that have atomised and inse- a strong awareness of it; chief executive cure for others. Sundar Pichai says its cloud business Skilled professionals who were has grown thanks to its focus on sectors already established in the labour including financial services and retail. market when the Covid-19 crisis hit Rivals such as Amazon and Microsoft will be enjoying the fruits of “hybrid” have also been hiring individuals with work by 2025. Many will work one or knowledge of specific industries. two days a week at home. With pres- It has been nearly a decade since enteeism no longer a prerequisite for noted US investor Marc Andreessen career progression, professional said that “software is eating the world”. women will find it easier to keep their His prediction is coming true. In Mr careers on track when they have chil- Son’s words, it has “so far replaced the dren. advertising industry, representing 1 per Corporate gender imbalance will cent of GDP”. With a radical change in society? Resource security driven by the trend. And particularly in Japan, the growth decades ago, when companies is partly aimed at avoiding head-to-head begin to improve. The normalisation the remaining 99 per cent just around energy shift will become an important pandemic has unexpectedly become a needed efficiently to allocate labour to competition with China and South of remote work will create opportuni- the corner, never has the value of verti- challenge for efforts to maintain growth. driving force behind the collapse of tra- growth sectors. But although the eco- Korea, which have similar industrial ties for talented people in developing cal business expansion been higher. ditional Japanese-style employment. nomic situation has changed since then, infrastructure. But even more significant countries to work for companies in Japanese brewer Kirin Holdings in Octo- Japanese companies did not replace is the digital wave sweeping many sec- the rich world. Finance ber announced that it would stop paying their traditional working style, even tors and resulting in fresh management But without strong policy action, Energy Makoto Kajiwara allowances for commuter passes for though they knew it was inefficient. The that is pursuing corporate value via the world of work for many others in Hirofumi Matsuo about 4,000 employees at its four group emergency of the pandemic, however, increased returns to scale. 2025 will be worse. High unemploy- If crisis is the mother of companies. Instead, it will pay a remote has finally prompted change. The four US tech giants — Facebook, ment in the years after the pandemic The energy revolution is invention, can Cov- work allowance of Y3,000 ($29) a Japan is at a crossroads as its popula- Apple, Amazon and Google — represent will erode the already weak bargain- upon us. And the shift id-19 give rise to new month. It will shift to a teleworking- tion declines. This year, the number of this focus. They bank on intellectual ing power of young and low-skilled to a decarbonised soci- tech giants that will based system, except for employees for working-age Japanese, those aged 15 to property and software, not hardware. workers. Companies will retain a core ety is not only forcing decide their birth- whom it is difficult to work remotely, for 64, is about 74m. But that is expected to But in Japan, investment in tangibles of well-treated staff, but new hires in change on the energy place’s future com- instance in plants and logistics facilities. continue declining, by 2.36m from 2020 is still the name of the game, in part both blue and white-collar positions supply-demand struc- petitiveness? Kirin Holdings has struggled to to 2025 and by 8.98m in the 2030s. That because of the auto industry. Panasonic, will increasingly be on temporary or ture, but on international Five years from now, inspire employee creativity over the means that a total number of workers for example, relies heavily on tangibles freelance contracts. politics and business as well. some of the companies founded by peo- past few years, but teleworking — which equivalent to the population of London as it pours money into EV batteries, For the young, bouts of joblessness In addition to the EU and Japan, US ple laid off in the pandemic may become it was forced to introduce due to will disappear from Japan in 10 years’ with the tangible-intangible ratio at 3:1. will be common. It will become President-elect Joe Biden has pledged to unicorns — privately held businesses Covid-19 — has given the company some time. In the US and UK, investment in tan- harder to find employers willing to ensure greenhouse gas emissions will with valuations of at least $1bn. The US ideas. “Remote working has increased Even today, Japan ranks lowest gibles and intangibles is now almost provide them with training, progres- reach net-zero no later than 2050. had the most unicorns last month with employee morale because they can among developed countries in terms of equal; China and India are growing their sion or pensions. By 2025, they will be China, the biggest emitter of greenhouse 242, followed by China with 119, accord- work at their own discretion,” said a productivity. For companies to remain share of investment in the latter. very angry. gases, has set a target of reducing emis- ing to CB Insights. The question for human resources and administrative competitive, they must become organi- Two factors are driving that shift. One sions to zero by 2060. Japan, which had only four unicorns, is department spokesperson. The pan- sations that are productive and capable is electric vehicles, which are highly Consumers Realising these goals will require dras- whether it can eliminate “zombie” com- demic has also prompted the company of innovation even with a small number compatible with internet technology tic technological innovation and an eco- panies. This is embarrassing for Japan, to promote group-wide work reforms, of employees. Otherwise, Japan’s econ- and software. If they proliferate in line John Gapper nomic and social shift. According to the where the pressure for corporate reform including lifting a ban on side jobs. omy will decline in the 2030s. with tougher environmental regulations Before Covid-19, retail International Energy Agency, sales of remains weak: even companies with low Attention is now centred on task- The next five years will be important around the world, the digitalisation and was moving towards electric vehicles will have to grow 20- growth potential have survived. focused employment, which is common to lay the groundwork for transforma- investment in software of the auto a world in which fold by the end of 2030. The transition Japan will only be able to become a in Europe and the US. Top Japanese tion to prevent that happening. industry will also accelerate. people bought less to a system centred on renewable global financial hub if it has a greater companies, including Hitachi, Fujitsu, Tesla’s rapid advance is a case in in stores and more energy is estimated to need investment number of “robust” companies. Then, Shiseido and Sompo Japan, announced point: The EV maker has drawn atten- online; divided their of $1.6tn, four times current levels. Japanese households are likely to shift that they will introduce this new focus. Industry and retail tion for technology that enhances vehi- purchases between luxury In the decarbonised society, countries their financial assets of Y1,800tn from Companies are required to outline to Atsushi Nakayama cle performance through software and discount with less in between, and and businesses that control technolo- savings to investment, prompting global employees responsibilities, goals and instead of hardware. Toyota, mean- shopped more ethically. By 2025, those gies enabling this shift will have the financial institutions to flock to Japan. It the abilities needed to achieve Big companies are while, has unveiled a “software-first” trends will not have changed but the competitive edge. If the 20th century is likely we will start seeing results well objectives. Task-focused employment starting to focus on management goal. pace will be quicker. was the age of oil, led by the US, in the ahead of 2025. translates naturally into remote work- intangible assets The second factor is the proliferation Consumers who have been forced to 21st century China will challenge the US. ing, as what should be done is clear like patents, trade- of “digital twin” technology. The idea is order online, or collect without entering China is set to hold a dominant share regardless of where and when employ- marks and software to build a digital replica of humans, cars stores, have learnt a lesson. Buying of the global market for technologies Work ees do their jobs. as new moneymak- and infrastructure in virtual space, remotely will be even easier and more and products that support climate Yukio Ishizuka Companies can also improve produc- ers. Take a look at where many economic activities such as convenient by 2025, and the global share change-mitigation — solar panels, wind tivity by placing the right people in the Sony. For the last five years, the Japa- big data processing and product devel- of ecommerce is likely to grow to about a turbines, electric vehicles and the bat- Arriving at the office right work according to capabilities. nese company has squeezed facilities, opment can be realised. In an unex- quarter from this year’s mid-teens. teries used in them. Major deposits of every morning at a set Japanese companies have long plants and similar assets so much that pected move, US tech giants Amazon The discount store packed with cheap rare earth minerals, essential for mak- hour to spend time adopted seniority-based wage and life- the ratio of hard-to-soft asset revenue and Google have been increasing their goods, such as Don Quijote in Japan and ing electric vehicle motors and wind and share space with long employment systems. In exchange, stood at 1:1 in March. tangible assets, including the acquisi- Walmart in the US, will come under turbines, are also located in China. bosses and colleagues employees were expected to work long But intangibles — games, music and tion of logistics companies. But the pressure: rather than packing into a Energy is now the frontline in US- — a way of working hours or on weekends and accept trans- movies — accounted for more than half move is most likely one that will allow small physical space, consumers will China friction as they compete for tech- once seen as immu- fers or relocations. That is quite differ- of operating profits, a sign that Sony them to incorporate the real world into browse online. They will save their out- nological dominance. How will coun- table — has been upended by corona- ent from task-focused employment. may further distance itself from hard- virtual space via “twins”. ings for fewer, more relaxing trips. tries reliably secure technologies and virus. Japanese-style employment took root ware over the next five years. The era of intangible assets is truly Generation Z, which abhors waste, materials for achieving a decarbonised Now, working from home is the global during the country’s rapid economic The strategic shift away from tangibles starting now. wants to buy less and trades clothes online, will have come of age. As it does, fast fashion will have to slow down and provide greater value, not just finan- FT and Nikkei readers’ views on the world in cially but environmentally in what it % who agree less those who disagree does for the planet. The consumers of A woman in the White House? Yes, Nikkei Asia readers FT Nikkei 2025 will be a careful crowd. -40-60 -20 0 20 40 60 Vladimir Putin Energy but global emissions unlikely to fall remains in o ice David Sheppard Kim Jong Un For more than 100 Predictions FT, Nikkei over 5,000 readers of the FT; of Nikkei, Nikkei readers disagreed (Nikkei Asia is still in power years the oil sector Japan’s leading business daily newspa- readers were evenly split). China overtakes the US has been character- and Nikkei Asia readers per; and of Nikkei Asia, the English- One way to overcome the economic to become the biggest economy ised by boom and language review of Asian business news. stasis implied by negative interest rates in the world bust: low prices diverge on Big Tech and Readers were asked how far they would be to invest in “green” technolo- India’s population surpasses eventually lead to negative interest rates, agreed or disagreed with 15 propositions gies, with the additional benefit of miti- that of China higher prices as under-in- writes Conor Sullivan spanning politics, the economy, busi- gating climate change. The US has its first vestment and rising consumption ness and technology. But readers appeared sceptical about female president catches up with the industry. With The responses of the three audiences the likelihood of swift action on climate crude languishing near $40 a barrel in The world is not about to reverse a trend diverged on a third of the questions, change given that a majority of those Negative interest rates have 2020, less than half the level of six years towards authoritarian or nationalist including whether the number of air surveyed by all three publications did disappeared from G7 economies ago, it would seem natural to bet that oil government, or make significant passengers would have recovered five not think greenhouse gas emissions Some countries become prices will rise substantially by 2025 as progress on combating climate change, years after the coronavirus pandemic. would be falling by 2025. Moreover, nei- completely cashless the cycle turns. according to the first joint survey of More FT readers felt this would not ther Nikkei nor FT readers expected Average African GDP growth But that is no longer certain. The glo- Financial Times and Nikkei readers. happen, while Nikkei Asia readers electric vehicles to account for more than rate is the highest in the world bal energy system is on the cusp of a Asked to assess the likelihood of vari- thought it would and Nikkei readers half of new car sales in five years’ time. once-in-a-century transformation. ous events happening by 2025, readers were split almost evenly. The surveys were divided on the The Syrian civil war finally ends Ambitious government targets to cut of the FT and the Japanese and English The result suggests that, in the west- proposition that Google would be bro- emissions and growing adoption of elec- publications of Nikkei thought Vladimir ern world at least, fear of infection, ken up, a proxy for the push to curb tech Greenhouse gas emissions tric cars is expected to lead to a peak in Putin would still be in power, Brexit restrictions on foreign travel and the giants’ power, with Nikkei readers are declining globally oil demand, potentially within 10 years. would not be reversed, China would substitution of video conferencing for thinking it would, but FT and Nikkei For an industry used to perpetual become the world’s biggest economy in-person meetings will damp a recov- Asia readers disagreeing. Momentum Over half of global new car growth that is profoundly unsettling. and India its most populous. None ery in international air travel, down 71 has been building to regulate Big Tech sales are electric Could supplies fall short even as con- thought the Syrian civil war would be per cent in October from a year earlier. on both sides of the Atlantic, with a US sumption goes into reverse, if energy over or that Africa as a whole would Another area where opinions congressional committee declaring in Google is broken up companies stop investing? Or might the achieve the world’s fastest growth. diverged significantly was negative October that “scrappy, underdog start- Number of airline passengers largest producers rush to pump every Readers were more optimistic about interest rates, which reflect the eco- ups”had become the “kinds of monopo- exceeds the pre-pandemic barrel they can, fearing they are sitting gender equality. They expected the US nomic stagnation that Japan has been lies we last saw in the era of oil barons volume* on a soon-to-be-stranded asset? The would have its first female president in familiar with for many years. Negative and railroad tycoons”. First humans on Mars world was given a glimpse of that future 2025. Kamala Harris, the US vice presi- rates were introduced in the eurozone in Readers seemed to anticipate that when a brief price war erupted between dent-elect, is considered a frontrunner 2014 and Japan in 2016; the UK’s central digitalisation of our lives would con- Saudi Arabia and Russia. for the 2024 Democratic nomination bank said during the summer they were tinue: they expected some countries to The UK rejoins the EU No one knows for sure. But the while former US ambassador to the UN “under active review”. FT readers have eliminated physical cash by 2025. approach of peak demand threatens to Nikki Haley is the most prominent thought negative rates would have dis- But none believed a human would land upend old certainties, even those as Republican woman associated with the appeared from the world’s major econo- on Mars, suggesting some science and Source: Survey of 5,090 FT, ingrained as the oil cycle. race. The results come from a survey of mies by 2025 while the largely Japanese tech frontiers will remain unconquered. Nikkei and Nikkei Asia readers *Reading is-1 DECEMBER 16 2020 Section:Reports Time: 11/12/2020 - 18:57 User: conor.sullivan Page Name: TWA5, Part,Page,Edition: TWA, 5, 1 6 ★ † FINANCIAL TIMES Wednesday 16 December 2020 DECEMBER 16 2020 Section:Reports Time: 11/12/2020 - 16:36 User: sophie.horton Page Name: TWA6, Part,Page,Edition: TWA, 6, 1