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FRIDAY 29 JULY 2016 WORLDBUSINESSNEWSPAPER EUROPE ElitesandMrsMay Deutsche angst Facebook friends ThenewPM’sfightforfairer The struggle facing Germany’s Why investors keep signing up capitalism —PHILIP STEPHENS, PAGE 9 biggest bank —BIG READ, PAGE 7 COMPANIES, PAGE 15 Ellison scoops Briefing $3.5bn from i France media torn over terror reporting The decision by French news organisations to with- Oracle deal holdinformationonperpetratorsofterroristattacks hassparkedadebateinFranceovertheroleofmedia infuellinghomegrownjihadism. — PAGE 4 Larry Ellison, chairman of Oracle, has added $3.5bn to one of the tech indus- i EU bank stress test results awaited try’sbiggest fortunes, with the purchase ItisnotjustEurope’sbankerswhoarenervously byhiscompanyof NetSuite,whereheis awaitingthepublicationtonightofthe“stresstests” alsothebiggestsingleinvestor. onthebiggestlenders—theresultscouldmakelife Mr Ellison’s foresight 18 years ago in uncomfortableforeurozonepolicymakers. — PAGE 3 helping to found NetSuite has left him well placed now Oracle is adding to its i Merkel rejects migrant policy rethink ownfirepowerincloudcomputing. Angela Merkel, Germany’s chancellor, said she One of the world’srichest men thanks would not budge on her refugee policy, despite to his $48bn Oracle stake, he is esti- terrorist attacks in Würzburg and Ansbach that matedtohavespent$100minasuccess- have sparked calls for a U-turn. — PAGE 4 ful high-tech bid to win back for the US the sailing world’s top prize, the Amer- i Credit Suisse returns to profit ica’s Cup, in 2013 — barely a fifth of the Swiss lender has brushed off amount he made yesterday morning as investors’ negative NetSuite’ssharesjumpedonthenews. expectations, reporting a Report page 11 return to profit in the second Lex page 10 Larry Ellison watches an America’s Cup training race off Bermuda in 2015 — Mike Segar/Reuters quarter despite the tumult of Brexit, low interest rates and volatile markets. — PAGE 12 i Adidas profits at the double GermansportsweargroupAdidasraiseditsprofit forecastforthefourthtimethisyearafterdoubling profitsinthesecondquarterto€291m,from€146m IMF accused of bowing to Brussels inthesameperiodayearearlier. — PAGE 11 i Turkey purge ensnares stock analysts After targeting tens of thousands of soldiers, bureaucrats and educators, Turkish President pressure in eurozone debt crisis Recep Tayyip Erdogan’s purge after a failed coup has now focused on stock analysts. — PAGE 2 i Russia urges US not to vote for Clinton 3 Internal review finds commission influenced staff 3 Lagarde rejects ‘premise’ of report Maria Katasonova, a 21-year-old prospective candidate for Russia’s Duma, began her campaign ARTHURBEESLEY — LONDON Christine Lagarde, the IMF’s manag- staffthatitrepeatedlybentitsownrules ‘Political crisis lending, acted as the agent of the by urging the US to vote for Donald Trump. — PAGE 2 ing director since 2011, backed some of tohelpouttheeurozone. eurogroup, which in turn represented TheIMFrepeatedlysuccumbedtopolit- the recommendations for improving “It highlights the concerns of many, factors member states and decided whether to ical pressure from European govern- internal procedures but dismissed calls both inside and outside the fund, that seemed to provideassistance. ments during the eurozone debt crisis, from the inspectors to fortify the fund’s the fund’s treatment of developing and “Interviews and some internal docu- Datawatch according to a damning internal report defencesagainstpoliticalinterference. emergingmarketeconomiesisquitedif- play a mentssuggestthatpoliticalfeasibilityin on bailout strategy that will fuel debate “IsupporttheprinciplethattheIMF’s ferent from its treatment of advanced bigger role creditor countries was an important US private fixed investments The Federal over whether it should continue to fund technical analysis should remain inde- economies,” said Eswar Prasad, eco- consideration for [European Commis- Annual change Reserve is more Greece. pendent,” she said. “However, I do not nomics professor at Cornell University. [for] sion] staff and that IMF staff occasion- optimistic about the US labour The Independent Evaluation Office accept the premise of the recommenda- “Politicalfactorsseemedtoplayabigger advanced ally felt pressured to accept a less-than- highlighted a litany of flaws in the IMF’s tion, which the IEO failed to establish in role than pure technical considerations idealoutcome.” market but “uneven” response, prompting calls for its report, and thus do not see the need [for]advancedeconomies.” economies’ TheinspectorssaidtheIMFexecutive warned ‘business fixed investment greaterclarityoveritsrescuestrategy. todevelopnewprocedures.” The inspectors said the troika boardwasinthedarkonsensitivepolicy has been soft’. Theassessmentalsoraisesfreshques- The fund’s involvement in eurozone arrangement — in which the IMF questions for Greece and for Ireland, Annual growth tions over the failure to restructure programmes had been a “qualified worked alongside the European Com- which also received a bailout in 2010. slowed from more Greek debt at the time of its first bailout success” in the face of unprecedented mission and European Central Bank — Some members had learnt more via the than 12 per cent in in 2010. The report, released yesterday, systemicchallenge,MsLagardesaid. potentiallysubjectedthetechnicaljudg- press throughout the crisis than from 2012 to 2 per cent said key decisions had already been Nonetheless, the report is likely to ment of IMF staff “to political pressure” informalboardmeetings. in the first quarter reached in Europe by the time the fund fuel suspicions of some emerging mar- from an early stage. “The European Analysis page 3 Source: Thomson Reuters Datastream this year. becameinvolvedintherescueeffort. ket IMF shareholders and some of its Commission, in the area of emergency Editorial Comment page 8 Chairman Mao relative builds stake in Sotheby’sas China’sfocus on art grows CHRISTIAN SHEPHERD —BEIJING sale of Modigliani’s“Reclining Nude” to Commission. It had “provided sugges- Liu Yiqian, a private collector, in tions”forboardnominationsattheauc- A Chinese life assurer headed by a rela- November for $170.4m. It was the tion house, it said, noting that “such tive of Mao Zedong has become the second-highest price for a work sold at nomination could include persons asso- largest single shareholder in Sotheby’s, auctiontodate. ciatedwith[TaikangLife]”. taking a 13.5 per cent stake in the China’s insurers have a similar appe- Tad Smith, Sotheby’s president, said Trump’s Russia faux pas auctionhouse. helps Clinton woo insiders tite for overseas acquisitions. Anbang the group “warmly welcomed” Taikang Life, one of China’s largest Insurance became a global name in Taikang’ssupportofits“strategicinitia- Analysis i PAGE 2 insurance groups with net assets of 2014withthe$2bnpurchaseoftheWal- tives”. Rmb33bn ($5bn), revealed yesterday dorf Astoria hotel in New York. In Mr Chen’s fame comes not just from that it had paid $230m for 8m shares in Marchits$14bnbidforStarwoodHotels Taikang and his wife’sancestry,but also Austria €3.60 Luxembourg €3.60 the New York-based auction house. The & Resorts stalled following speculation from his prominence as an art dealer Bahrain Din1.7 Macedonia Den220 Belgium €3.60 Malta €3.50 shareswerepurchasedontheopenmar- aboutregulatorychallenges. andaesthete. Bulgaria Lev7.50 Morocco Dh43 ketduringJuneandJuly. Between January and June Chinese In 1999 he founded the first govern- Croatia Kn27.50 Netherlands €3.60 Cyprus €3.50 Norway NKr35 Chen Dongsheng, who founded and companies agreed to $121.1bn in cross- ment-run auction house to specialise in Czech Rep Kc100 Oman OR1.50 Denmark DKr32 Pakistan Rupee 280 runs the life assurer, is a grandson-in- border deals, according to data from Chineseartandantiques. Egypt E£20 Poland Zl 18 Finland €4.10 Portugal €3.50 law of Mao and the largest shareholder ThomsonReuters,morethantherecord Sales of Chinese ceramics and paint- France €3.60 Qatar QR15 of China Guardian Auctions, a leading forafullyearsetin2015. ings have buoyed Sotheby’s revenues in Germany €3.60 Romania Ron17 Gibraltar £2.70 Russia €5.00 artauctionhouse. Taikang said a “positive view” of Asia. Last week the auction house Greece €3.50 Serbia NewD420 Hungary Ft1090 Slovak Rep €3.60 Several world-famous works have Sotheby’s business was the primary reported 22 per cent year-on-year India Rup195 Slovenia €3.50 beensoldtoChineseartbuyersrecently, reason for the purchase in a filing growth to $461.5m for the region during Italy €3.50 Spain €3.50 Kazakhstan US$5.50 Sweden SKr37 the most high-profile of which was the with the US Securities and Exchange thefirstsixmonthsoftheyear. Kenya Kshs300 Switzerland SFr5.90 Latvia €6.99 Tunisia Din7.50 Lebanon LBP7500 Turkey TL10 Lithuania €4.30 UAE Dh15.00 Subscribe In print and online World Markets www.ft.com/subscribetoday STOCK MARKETS CURRENCIES INTEREST RATES email: [email protected] Tel: +44 20 7775 6000 Jul 28 prev %chg Jul 28 prev Jul 28 prev price yield chg Fax: +44 20 7873 3428 S&P 500 2163.71 2166.58 -0.13 $ per € 1.108 1.099 € per $ 0.902 0.910 US Gov 10 yr 101.03 1.51 0.01 Nasdaq Composite 5142.44 5139.81 0.05 $ per £ 1.312 1.312 £ per $ 0.762 0.763 UK Gov 10 yr 106.39 0.84 -0.03 © THE FINANCIAL TIMES LTD 2016 Dow Jones Ind 18402.09 18472.17 -0.38 £ per € 0.845 0.838 € per £ 1.184 1.193 Ger Gov 10 yr 106.28 -0.15 0.00 No: 39,228 ★ FTSEurofirst 300 1338.28 1351.75 -1.00 ¥ per $ 104.835 105.650 ¥ per € 116.194 116.104 Jpn Gov 10 yr 104.05 -0.29