EUROPE Friday December 14 2012

World Business Newspaper

JPMorgan uses counter-terrorismtools to spot fraud among workersBy Richard Waters in London

JPMorgan Chase has turned totechnology used for counteringterrorism to spot fraud riskamong its own employees and totackle problems such as decid-ing how much to charge whenselling property behind troubledmortgages.

The technology involvescrunching vast amounts of datato identify hard-to-detect pat-terns in markets or individualbehaviour that could revealrisks or openings to makemoney. Other banks are alsoturning to “big data”, the namegiven to using large bodies ofinformation, to identify poten-tial rogue traders who mightland them with massive losses,according to experts in the field.

“They’re trying to mine notjust trading data, but alsoemails [and] phone calls,” saidDavid Wallace, an executive at

SAS, a US data analysis com-pany. “They’re trying to find theneedle in the haystack.”

Guy Chiarello, JPMorgan’schief information officer, saidthe bank was mining massivebodies of data in “a couple ofdozen projects” that promised tohave a significant impact on itsbusiness, though he refused togive further details.

According to three peoplefamiliar with its activities,JPMorgan has used PalantirTechnologies, a Silicon Valleycompany whose technology washoned while working for the USintelligence services, for part ofits effort. It first used the tech-nology to spot fraudsters tryingto hack into client accounts orATMs, but has recently startedto turn it on its own 250,000-strong staff.

In another aspect of its big-data work, the bank is drawingon large amounts of highly

diverse information about localeconomies where it has troubledreal estate loans, two of thesepeople said. The information isbeing used to set prices for prop-erty sold before a loan goes intodefault, in an attempt to reducethe social disruption caused bythe troubled loans.

Other tech companies are alsofinding new purposes fornumber-crunching techniquesused in intelligence to bringnew data-intensive approachesto risk management, creditassessment and marketingactivities. Quantifind, a techstart-up that has worked withthe CIA to identify aliases usedby terrorists, was called in byJPMorgan to explain how itstechnology could be applied toits credit card business, said AriTuchman, chief executive.

Data open doors, Page 15www.ft.com/techblog

9 7 7 0 1 7 4 7 3 6 1 5 9

5 0

Dec 13 prev %chg

S&P 500 1420.68 1428.48 -0.55

Nasdaq Comp 2992.61 3013.81 -0.70

Dow Jones Ind 13191.25 13245.45 -0.41

FTSEurofirst 300 1134.86 1139.65 -0.42

Euro Stoxx 50 2627.66 2630.34 -0.10

FTSE 100 5929.61 5945.85 -0.27

FTSE All-Share UK 3100.57 3108.25 -0.25

CAC 40 3643.13 3646.66 -0.10

Xetra Dax 7581.98 7614.79 -0.43

Nikkei 9742.73 9581.46 +1.68

Hang Seng 22445.58 22503.35 -0.26

FTSE All World $ (u) 222.46 -

COMMODITIES

Dec 13 prev chg

Oil WTI $ Jan 85.89 86.77 -0.88

Oil Brent $ Jan 107.91 109.50 -1.59

Gold $ 1,711.95 1,710.25 1.70

price yield chg

US Gov 10 yr 99.03 1.73 0.03

UK Gov 10 yr 98.92 1.87 0.02

Ger Gov 10 yr 101.37 1.35 0.01

Jpn Gov 10 yr 99.77 0.73 0.02

US Gov 30 yr 96.86 2.91 0.01

Ger Gov 2 yr 100.10 -0.05 0.01

Dec 13 prev chg

Fed Funds Eff 0.17 0.17 -

US 3m Bills 0.06 0.07 -0.01

Euro Libor 3m 0.12 0.12 0.00

UK 3m 0.57 0.57 -

Prices are latest for edition

Dec 13 prev

$ per € 1.309 1.304

$ per £ 1.613 1.612

£ per € 0.811 0.809

¥ per $ 83.6 82.9

¥ per £ 134.9 133.7

$ index 80.9 80.8

SFr per € 1.209 1.212

Dec 13 prev

€ per $ 0.764 0.767

£ per $ 0.620 0.621

€ per £ 1.233 1.236

¥ per € 109.4 108.1

£ index 83.7 83.7

€ index 90.77 90.44

SFr per £ 1.490 1.497

STOCK MARKETS CURRENCIES INTEREST RATES

World MarketsAustria €3.50 Malta €3.30Bahrain Din1.5 Mauritius MRu90Belgium €3.50 Morocco Dh40Bulgaria Lev7.50 Netherlands €3.50Croatia Kn29 Nigeria Naira715Cyprus €3.30 Norway NKr30Czech Rep Kc120 Oman OR1.50Denmark DKr30 Pakistan Rupee 130Egypt E£19 Poland Zl 16Estonia €4.00 Portugal €3.50Finland €3.80 Qatar QR15France €3.50 Romania Ron17Germany €3.50 Russia €5.00Gibraltar £2.30 Saudi Arabia Rls15Greece €3.50 Serbia NewD420Hungary Ft880 Slovak Rep €3.50India Rup85 Slovenia €3.50Italy €3.50 South Africa R28Jordan JD3.25 Spain €3.50Kazakhstan US$5.20 Sweden SKr34Kenya Kshs300 Switzerland SFr5.70Kuwait KWD1.50 Syria US$4.74Latvia Lats3.90 Tunisia Din6.50Lebanon LBP7000 Turkey TL7.25Lithuania Litas15 UAE Dh15.00Luxembourg €3.50 Ukraine €5.00Macedonia Den220

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Syria opposition

As Syrians have pushed for theregime’s fall in the past twoyears, Moaz al-Khatib,geophysicist and preacher, isone of the few figures onwhom President Bashar al-Assad’s opponents could agreeto lead them. During his mostrecent arrest he was deprivedof sleep and thrown into a tinycell with 25 other prisoners. ‘Itfelt close to death,’ he recallsin an interview with the FT.

Report, Page 3

By Caroline Binham,Brooke Masters andDaniel Schäfer in London andKara Scannell in New York

UBS faces a record fine of morethan $1bn to settle allegationsthat it manipulated Libor as theworldwide probe into rigging ofthe benchmark rate gatherspace.

The bank and various authori-ties around the world are lockedin last-minute negotiations thatare likely to see UBS publiclysettle as early as Monday, peo-ple familiar with the investiga-tion told the Financial Times.

Such a fine would more thandouble the $450m Barclays paidin a then-record settlement overLibor this summer – despiteUBS partially winning leniencyfor co-operating with authori-ties.

A hefty fine over Libor-rigging would cap a terribleyear for the Swiss-based bankthat has seen a rogue trader goto jail, a SFr349m ($377m) losson the botched Facebook IPO,and a curtailing of its once-mighty investment bank.

Its long chain of mishapsthreatened to undermine thereputation of UBS’s core wealth-management business, and hascontributed to the decision bychief executive Sergio Ermotti,and his new chairman, AxelWeber, two months ago to cut10,000 jobs and wind down asizeable part of the investmentbank.

“After such high losses fromoperational and credit problemssuch as structured credit, roguetrading and Libor, investorsapplaud them closing a signifi-

cant chunk of the investmentbank and refocusing on wealthmanagement,” said Huw vanSteenis, an analyst at MorganStanley.

UBS’s share price droppedslightly yesterday after the FTrevealed the size of the Liborfine, ending the day 1 per centdown at SFr15.08. Even by Sep-tember the bank had set asideSFr897m in legal provisions.

UBS’s compliance failureswere underscored last monthwhen a former trader was sen-tenced to seven years in prisonfor the biggest banking fraud inBritish history – a scandal thatcost the bank $2.3bn in roguetrades, its chief executive, and a£29.7m fine levied by the UK’sFinancial Services Authority.

That will be a fraction of thefine demanded by the FSA,along with the US Departmentof Justice and US CommodityFutures Trading Commission,and by Finma, UBS’s mainSwiss supervisor, to settle Libor-manipulation allegations.

All four are expected toextract some sort of monetarysettlement; Finma cannotimpose fines but can demandthat companies give up ill-gotten gains.

Libor is the umbrella term forbenchmark rates that underpinthe terms of $350tn of contractsfrom mortgages to the cost ofcorporate lending. The probe,which has embroiled about 20 ofthe world’s biggest banks andinterdealer brokers, has acceler-ated with the first arrests takingplace this week in the UK.

UBS, the FSA, Finma and theUS authorities all declined tocomment.

UBS faces$1bn f ineover LiborallegationsSwiss bank in talks with global regulators

Fed conducts firstbank stress testThe Federal Reserve iscarrying out a system-widestress test of bank liquidityin a move that could forcebanks to change theirfunding sources.Page 13; James Grant, Page 9

Danone cuts costsDanone plans to cut costs inEurope by €200m to “regainits competitive edge” butdenies the measure is relatedto a recent call to boostperformance. Page 13

Fiscal cliff talks stallUrgent US budget talks arein discord after theRepublican speaker, JohnBoehner, accused BarackObama of taking theAmerican economy “right upto the fiscal cliff”.Page 2; www.ft.com/fiscal

ANC to set directionThe African NationalCongress’s five-yearlyconference that begins onSunday will be a keyindicator of the direction theparty will take. Page 2;Editorial Comment, Page 8

Japanese disillusionLike the rest of Japan, in thewake of the tsunami in 2011most people in the northeastdo not support any politicalparty ahead of the generalelection on Sunday. Page 6;www.ft.com/japanelection

African health woesChronic diseases led by heartconditions and stroke havesignificantly overtakeninfections as the leadingcauses of death anddisability everywhere exceptin sub-Saharan Africa. Page 2

Sugar prices tumbleSugar prices have hit theirlowest level in more thantwo years as confirmation ofa large Brazilian cropdepressed the market below akey technical level. Page 24;www.ft.com/commodities

News Briefing

Separate sectionFT Wealth Magazine

TOMORROW INFT WEEKENDFT travel writersJan Morris,Paul Therouxand Pico Iyer ontheir discoveriesof 2012Life & Arts

Person of the yearDraghi: the man who gave Europe hope. Page 7

Bernanke’s long marchto low unemploymentGillian Tett, Page 24

Stripe action Hirst splits from richest art gallery

Artist Damien Hirst (above with his piece ‘The Incredible Journey’) is parting company with the world’s richest gallery. Gagosian hasrepresented the world’s wealthiest artist, who has a fortune of £215m, for the past 17 years www.ft.com/world Getty Images

By Michael Steen andLionel Barber in Frankfurt

The EU needs fresh powers towind up failing banks in aspeedy push to the next phaseof banking union after a land-mark agreement on centralisedsupervision, according to MarioDraghi, president of the Euro-pean Central Bank.

The hard-won agreementamong eurozone finance minis-ters yesterday to appoint theECB as the “single supervisorymechanism” was the first andeasiest step in a banking unionplan aimed at preventing arepeat of the financial conta-gion that dragged down banksand sovereigns in the crisis.

The next phase – agreeing on

a common resolution authorityto oversee the orderly windingdown of insolvent lenders – islikely to be even more fraughtas it implies taxpayers mighthave to pay for the mistakes ofa bank in another country.

“A European resolutionauthority is an important com-plement to the SSM and it willlikely be in place by the timethe SSM takes up its responsi-bilities,” Mr Draghi told theFinancial Times on the eve ofthe agreement. The bankexpects to take a year to pre-pare itself to take over respon-sibility for supervising lenderswith assets of more than €30bn.

Mr Draghi’s confidence thatwind-up powers will be in placeby early 2014 comes despite a

Franco-German battle aboutthe speed and scope of bankingunion, with Berlin urging lesshaste for fear of sharing theburden of losses from windingdown a foreign bank.

The bailout authority wasdue to be discussed at a summitof EU leaders last night, whichfollowed 24 hours of uncharac-teristically rapid decision mak-ing by eurozone ministers.

Hours after agreeing theframework for a new supervi-sor, finance ministers agreed torelease a long-delayed €34.4bnpayment to Greece.

Antonis Samaras, the Greekprime minister, hailed the dealas historic. “Grexit is dead,” hesaid as he arrived in Brussels.

Asked what the bank would

do if Europe’s leaders could notagree on a common resolutionscheme quickly, Mr Draghiindicated the bank would beprepared to in effect shamelocal supervisors and govern-ments to take action.

He said: “Even in [the resolu-tion mechanism’s] absence, thesingle supervisor’s assessmentof the possible non-viability of abank would be such a strongstatement that it would likelytrigger the national govern-ment’s policy response.”

Eurozone woes, Page 4Analysis, Page 7Editorial Comment, Page 8Lex, Page 12Markets, Page 25www.ft.com/draghitranscript

Draghi’s rally cry for new EU powers

2 ★ FINANCIAL TIMES FRIDAY DECEMBER 14 2012

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By James Politiin Washington

US budget talks were miredin discord, raising growingalarm that Congress andthe White House may beunable to reach an agree-ment before the Christmasholiday, causing negotia-tions to stretch right up tothe year-end deadline.

At press conferences inWashington, John Boehner,

Republican Speaker in theHouse of Representatives,and Harry Reid, the Demo-cratic Senate majorityleader, traded barbs, accus-ing each other of prevent-ing a breakthrough andstriking a sharply negativetone on prospects for a deal.

There are only 18 daysleft before the US feels theimpact of the fiscal cliff, theautomatic tax rises andspending cuts that threatento tip the world’s largesteconomy back into reces-sion.

Mr Boehner made clearhe continued to resist MrObama’s key demand fortax rates to rise on the

wealthiest Americans, andsaid the burden was on theWhite House to presentdetailed spending cuts inorder to unlock the talks.

“The president wants topretend that spending isn’tthe problem, that’s why wedon’t have an agreement,”Mr Boehner said, addingthat the White House“appears willing to slowwalk any agreement andwalk our economy right upto the fiscal cliff”.

Democrats and the WhiteHouse have indicated thatno progress can be made inthe discussions until Repub-licans agree to raise taxrates on the wealthy, one of

Mr Obama’s main messagesduring the re-election cam-paign.

Public polls show Ameri-cans back their push fortaxes to rise on the rich,giving them additional lev-erage in the negotiations.But even though Mr Boeh-ner is facing growing pres-sure from some Republi-cans, particularly in theSenate, to cave in, he is alsodealing with conservativerank-and-file members whoare deeply resistant to com-promise.

“We are in this stand-offsituation. We say rates,they say cuts,” said oneSenate Democratic aide

close to the talks. “Theyhave to blink first. If theywere to give up on taxrates, it would trigger aseries of horse trades thatwould in all likelihood leadto a deal in a matter ofdays.”

But the aide added thatDemocrats were “not goingto offer them cuts pre-emp-tively”, since they felt “verycomfortable politically withwhere we are”.

“We are 100 per cent surethat they will bear the[political] brunt” if the USwent over the cliff, theDemocratic aide said.

During his press confer-ence, Mr Boehner did not

rule out that in the absenceof a deal with Mr Obama hemight proceed with a fall-back option that would pre-vent middle-class tax cutsincreasing, with little elsein the package. This wouldoffer one big concession toMr Obama but preserveRepublican leverage for abigger budgetary battleover taxes, spending, andthe US borrowing limit nextyear.

Mr Reid said Mr Boehnercould not ignore the Ameri-can people. “At some pointreality should set in,” MrReid said.

Notebook, Page 8

By Andrew Jack in London

Chronic diseases led byheart conditions and strokehave significantly over-taken infections as the lead-ing causes of death and dis-ability everywhere in theworld except in sub-Saha-ran Africa, according to apioneering assessment ofglobal health trends.

The trends identified inthe Global Burden of Dis-ease analysis, co-ordinatedby the Institute for HealthMetrics and Evaluation atthe University of Washing-ton in Seattle, are set tospark debate over the prior-ities of national health sys-tems and the focus of inter-national agencies, such asthe World Health Organisa-tion, which still allocatemost funding to infectiousdisease. In the past two dec-ades, global life expectancyhas risen on average by 10years and age-adjusted mor-tality and disability havefallen for most diseases –exceptions include diabetes,Alzheimer’s and chronickidney disease, according tothe study which covers1990-2010. The analysishighlights the top “risk fac-tors” causing illness anddeath – led by high bloodpressure, tobacco and alco-hol use, air pollution and adiet low in fruit.

Prof Christopher Murray,who led the work publishedin the Lancet, said: “Thepace of change means doc-tors trained, and countriesand development institu-tions established, 25 yearsago cannot keep [up].”

His preliminary calcula-tions of “healthy life expect-

ancy” show Japan retainedits top position in 2010, atnearly 72 years for womenand 69 for men. Overall lifeexpectancy was nearly 86and 79 respectively.

A number of other Asiancountries are among themost improved for lifeexpectancy in good healthsince 1990, including Singa-pore, South Korea and Tai-wan. The US fell threeplaces to rank 32nd for menand 18 places to 35th for

women, while the UKranked 20th for men and29th for women.

The overall increase inlife expectancy has coin-cided with rising globalincome levels, wider use ofvaccinations to protectagainst infections such asmeasles and greater accessto life-saving treatments.

The disease that showedthe biggest rise in infec-tions since 1990 was HIV/Aids, which has been dis-proportionately concen-trated in sub-SaharanAfrica and has begun todecline from its peak in themid-2000s. Lower respira-tory infections also remainimportant killers in theregion.

Traffic-related accidentsand adverse effects frommedical treatments roseglobally between 1990 and2010, and there was a surgein deaths from natural dis-asters, largely as a result ofthe nearly 200,000 killed inthe Haiti earthquake.

The broader downwardstrend in mortality and disa-bility conceals high levelsof illness, including a heavyburden from debilitatingmusculoskeletal conditions,such as backache, as wellas depression and othermental health conditions.

While deaths duringchildhood fell sharply to 7min 2010, those among adultsaged 15-49 rose to 9m, point-ing to the relatively highereffectiveness of child-fo-cused agencies such asUnicef. “It’s just as impor-tant to keep adults alive,”said Alan Lopez from theUniversity of Queensland,one of the authors.

Standing alongside amachine churning out self-adhesive paper, DaveBurger points to a wall thathe plans to push back andceiling that will be raised.

The South African busi-nessman is in expansionmode and needs to makeroom for a R4m ($460,000)coating machine arriving inJanuary. Mr Burger saysthe device will triple MillboPaper’s production capacityto 300 metres a minute.

If all goes as planned, itwill help increase revenuefrom R45m this financialyear to R60m-R80m next, asthe company, whichemploys 16 people, producesmaterials for labels, pricetags and packaging. MrBurger is bullish about hiscompany’s prospects.

Yet his mood swingsbleakly when the conversa-tion turns to South Africa’sfuture and politics as thegoverning African NationalCongress prepares to open afive yearly conference onSunday. He even raises thespectre of moving overseas,complaining about corrup-tion and weak leadership.

“Where’s the future formy son? He’s six years old.If I don’t have a business,do you think he’s going toget a job?” he says.

“We could quite easilypack up the machines andgo . . . Do we want to dothat? Absolutely no, it boils

down to the future.” MrBurger’s views may err onthe extreme side of pessi-mism in a society grapplingwith high unemployment,poverty and deep inequali-ties. They also reflect thesometimes contradictorysentiments in a nation thatinspired incredible hopewhen it made the transitionfrom white rule to democ-racy in 1994 but is still bat-tling many of apartheid’slegacies.

As 4,500 ANC delegatesdescend on Mangaung thisweekend to select theparty’s leaders, and proba-bly the country’s next presi-dent, Mr Burger is notalone in expressing concernabout the trajectory ofAfrica’s most developedeconomy.

The conference will be anindicator of the directionthat the politically domi-nant ANC will take, withthe initial spotlight on aleadership challenge facedby President Jacob Zuma.His deputy, KgalemaMotlanthe, is to contest theANC’s top job.

Church leaders complainabout moral decay in theANC, reportedly saying in aletter to Mr Zuma thatSouth Africans “yearn for achange from an increas-ingly corrupt political, busi-ness and societal culture toone that is accountable to

the people”. The businesscommunity wants clarityon policy proposals rangingfrom increased state inter-vention in the economy tonew mining taxes and landreform.

Last Sunday 33 executivesran a newspaper advertwarning that South Africafaced “major challenges”.

“The doomsayers whopredict a failure of thenation were mistaken,” itread. The country boastsstrong state institutions, aswell as the continent’s most

developed corporate sectorand infrastructure. But theexecutives added that“there is a strong sense thatwe have lost momentum”.

“Poverty, unemployment,pervasive corruption andfailures in our educationsystem and the rule of lawremain serious challengesfor our young democracy,”the advert read. “Leftunchecked, our country isin danger of unravelling.”

Gwede Mantashe, ANCsecretary-general, described

these messages as a “mis-chievous warning”.

He says: “Sectors of soci-ety want a particular out-come. I don’t think weshould accept that.”

Violent wildcat strikes inthe mining industry havesharpened the focus on thenation’s problems. Theyalso pose questions aboutleadership across govern-ment, business and unionsas rating agencies down-graded South Africa.

“Things have got tochange. We have got tohave strong leadership atthe top,” Mr Burger says.“A lot of businesses I speakto, these guys are certainlynot expanding – they maybe remaining constant, ifnot dipping.”

Even before the strikes,executives worried aboutpolicy uncertainty, particu-larly around a debate onmine nationalisation – anda gloomy investment envi-ronment. The ANC ruledout “wholesale nationalisa-tion” after a June confer-ence but adopted a resolu-tion recommending strate-gic nationalisation “wheredeemed appropriate on thebalance of evidence”, leav-ing its policy ambiguous.

Analysts predict a confer-ence triumph for Mr Zuma.One question will bewhether the post-congressANC leadership will reas-sure wary investors andaccelerate development.

“Because the country isgoing through some seriouseconomic challenges, lead-ership has risen to the foreas being all that much moreimportant,” says KristinLindow at Moody’s ratingagency, which has SouthAfrica on negative outlook.

Editorial Comment, Page 8

Business cautious before ANC meetsSouth AfricaAndrew Englandtalks to executiveswho seek clarityon policies such asstate interventionand land reform

Heart disease movesup list of big killers

Boehner and Reid trade barbsNo sign of deal infiscal cliff talksObama still seekingtax rises for rich

CNBC, the financial newsnetwork, has shifted itsbig guns from New Yorkto Washington to coverbudget negotiations, witha clock ticking ominouslyon screen to remindpoliticians of the urgentneed for a fix to avoid thefiscal cliff.

By yesterday, with 18days to go to the end-of-year deadline, theinstinctive reaction ofmany in the capital to thecountdown was: what’sthe rush? 18 days? Forthose jaded by thecapital’s serial budgetwars, that’s a lifetime.

But seriously, CNBCcould just as easily set itsticker for other budgetshowdowns that lie overthe horizon.

The US reaches itsborrowing limit early inthe new year. Thedeadline for detailed taxreform arising from theframework set in thefiscal cliff talks is likelyto be later in 2013, withtax triggers attached toforce a deal.

All of which is anotherway of saying that shortof a grand bargain in thecoming weeks, somethingthat is implausible,budget brinkmanship willbe a feature of US politicsfor many years to come.

It is not just the gulfbetween the two partiesthat militates againstclosure. Far from settlingthe core issues of taxingand spending, the 2012election has entrenchedthe partisan divide inWashington.

Before the poll, BarackObama suggestedoptimistically his re-election could “break thefever” on the Republicanside by bringing themround to his view thattax rates must rise aspart of deficit reduction.But Republicans in theHouse of Representatives,where conservatives stillhold a strong majority,aren’t playing by thatscript.

The unfortunate truthfor Democrats is that theparty’s huge losses in thecongressional midtermand gubernatorial races in2010 coincided with thedecennial census, atrigger allowing states toredraw constituencyboundaries.

The result was thatRepublicans won theright to draw much of thepolitical map and that,says David Wasserman, ofthe Cook Political Report,means “the deck isstacked”.

The gerrymander put in

place by Republicans instates where they had theability to do so is a mainreason why Democratswould have to win a“tidal wave, not just in2012 but in any year, tocontrol the House”.

In many states,Democrats won thecollective popular vote inHouse races but fewerseats. Nationally, theypicked up only eightseats, to bring theirnumber to 201 in the435-member House.

Take Wisconsin. MrObama won the state inNovember by aconvincing seven pointsbut Democrats securedonly three of the state’seight House seats. OrNorth Carolina, where theDemocrats won morethan half the votes inHouse races but fewerthan a third of the seats.

The concentration ofDemocratic voters incities and along the coasthelps their candidate inpresidential elections, asactivists have an easierjob in rounding voters upto get them to the polls.

Paradoxically, suchconcentrations helpRepublican redistricting,as Democratic voters canbe more easily herded

into single districts whileconservatives claim therest for themselves.

It goes without sayingthat Democrats redrewboundaries to theiradvantage where theycould. But they picked abad time to lose in 2010,as Republicans reaped thebulk of the redistrictingspoils. So when MrObama threatensRepublicans that theirparty’s brand will beirreparably damaged if itsticks to its hard line inbudget negotiations, notall House members willfeel they have to listen.

More and more, theyoccupy safe Republicandistricts and really needto appeal to Republicanvoters. A dialogue of thedeaf in Washington mightsuit them just fine.

One thing has thepotential to change that.If Mr Obama forces a risein tax rates, which in oneform or another isinevitable, and theeconomy thrives, then thewind might be taken outof Republican sails.

But don’t count on it.There is no sign that theeconomy is about to takeoff. Extended trenchwarfare, starting withtoppling off, at leastbriefly, the fiscal cliff onJanuary 1, is a muchbetter bet.

Trench warfare,not winds ofchange, awaitsCapitol Hill

Short of a grandbargain, budgetbrinkmanship willbe a feature of USpolitics for years

GLOBAL INSIGHT

Richard McGregorin Washington

WORLD NEWS

‘Poverty,unemployment[and] corruptionremain challengesfor our democracy’

Mining strikes have focused attention on S Africa’s woes AP

Elderly people work out in Tokyo. Japan enjoys the longest healthy life expectancy AFP

Health law snub

Twenty­four states, mostof them led by Republicangovernors, are set to defya government deadlinetoday to create the healthinsurance exchanges thatare central to BarackObama’s healthcare law,writes Alan Rappeport inWashington.

At a congressionalhearing yesterday,representatives fromseveral states argued thatthe Federal governmenthad been slow to provideinformation about the costof the exchanges anddetails of the new law.States that do not set uptheir own exchanges areleaving the job to theFederal government.

So far, 18 states andWashington DC havevowed to create their own,according to the KaiserFamily Foundation, whichprovides research andanalysis of healthcareissues.

In full: www.ft.com/us

Causes of disability and death Leading risk factors

Source: Institute for Health Metrics and Evaluation

Change in Disability-Adjusted Life Yearsbetween 1990 and 2010 (%)*

* Years of life lost and years lived with disability

-100 0 100 200 300 400

HIV

Diabetes

Muscularconditions

MalnutritionLower

respiratoryinfectionsDiarrhoea

% of Disability-Adjusted Life Years, 2010*

0 1 2 3 4 5 6 7

High blood pressure

Smoking (includingpassive smoking)

Alcohol use

Air pollution

Diet low in fruits

High body-mass index

DECEMBER 14 2012 Section:World Time: 13/12/2012 - 19:31 User: dawkinsj Page Name: WORLD1 USA, Part,Page,Edition: EUR, 2, 1

FINANCIAL TIMES FRIDAY DECEMBER 14 2012 ★ 3

Moaz al-Khatib fights tearsas he recalls seeing ayoung girl protesting infront of the Libyanembassy in Damascus inFebruary 2011, just beforeSyria’s revolution began.

“I don’t know the womanbut I always remember herbecause she affected me somuch. She was shoutingfor a whole hour and shedid not stop crying,” hesays.

As Syrians have pushedfor the fall of PresidentBashar al-Assad’s regimeover the past two years,the 52-year-old geophysicistand preacher has, betweenstints in jail, attendedseveral demonstrations.

As one of the few figureson whom Mr Assad’sopponents could agree tolead them, Mr Khatibheads Syria’s mainopposition group.

During his most recentarrest he was deprived ofsleep and thrown into atiny cell crammed with 25other prisoners. “It feltclose to death,” he recallsin an interview with theFinancial Times. Although

Mr Khatib is not apolitician and was neverpart of a politicalorganisation, he has longbeen a thorn in the side ofthe Assad family that hasruled Syria for fourdecades.

The son of a DamasceneSunni Muslim family ofreligious scholars, he wasbanned from preaching inmosques for 17 years. “Iused to say that religionwithout freedom andjustice is fake,” he says.

He emerged last monthas one of the rare figureswhich a fractiousopposition could unitearound. The SyrianNational Coalition hassince established itself asthe legitimaterepresentative of thepopulation, with more than100 countries, including theUS, recognising it onWednesday at a conferencein Marrakesh.

Mr Khatib says theFriends of Syria conferencerepresents a “very bigpolitical gain” and furtherstrips the regime oflegitimacy. But, speakingfrom his Marrakesh hotelhours after the meeting, healso suggests that foreigninvolvement with Syriacomes a little too late.

“The internationalcommunity has been in aslumber, silent and late asit saw the blood of thepeople bleeding and itschildren being killed forthe last 20 months,” hesays.

More than 40,000 peoplehave been killed in the

conflict since March 2011.Openly critical of a USdecision to brand a jihadirebel group, Jabhat al-Nusra, as a terroristorganisation, he says theworld community is partlyto blame for the emergenceof extremist groups inSyria.

“When the internationalcommunity intervenes atthe right time and when itmoves to defend people atthe right time it makessocieties stable,” he says.“The wrong internationalpolicies have led toextremism.”

Having fought on theirown and getting closer todislodging the regime asthe battles move to theheart of Damascus, Syriansare no longer looking forinternational militaryintervention or UNpeacekeepers, he says.

The opposition wantsweapons but even without

more supplies, “the Syrianpeople will uproot thisregime, even using theirnails”, he says.

Critics say Mr Khatibhas held anti-westernviews in the past. Withinthe opposition, some peoplegrumble that he lackspolitical experience and areuncomfortable with hisIslamist leanings.

Others, however, say MrKhatib is a moderateIslamist and a passionatepreacher who can reachout to the increasinglyradicalised rebels and,crucially, to Syria’sminorities, some of whomremain loyal to the regime.

There is no doubt thatMr Khatib speaks thelanguage of the revolution,even when it clashes withwestern policy.

At a time when LakhdarBrahimi, the UN envoy, issaid to be discussing apolitical transition with the

US and Russia, the Syrianopposition leader isadamant that no changecan take place with thepresident in power.

Mr Khatib reserves hisharshest criticism forRussia, which he sayswould be “particularlyresponsible” if Mr Assadresorts to the use ofchemical weapons. “Ibelieve that the Russianshave woken up and aresensing that they haveimplicated themselves withthis regime but they don’tknow how to get out.”

As the rebels tighten thenoose around the regimeand government securityforces escalate the conflictby firing Scud missiles forthe first time this weekfrom Damascus intonorthern Syria, Mr Khatibsays there are threescenarios for the end of theAssad era.

The first and most costly

is that Mr Assad fightsuntil the end; the second isan implosion of the regimethat would save Syriamore bloodshed; and thethird is the departure ofthe regime within apolitical solution.

Would the opposition,which wants Mr Assadtried by the InternationalCriminal Court, agree toan exile for the Syrianpresident?

“If Bashar wants [toleave] he could throughsome channels send a clearmessage . . . that he wantsto end the destruction ofthe country. Someinternational mediatorsfrom the UN or otherscould listen to him but wewill not commit toanything until we study it[a proposal].”

Syria’s agony, Page 9Videos and reports,www.ft.com/syria

Preacherunitesopponentsof AssadInterviewMoaz al­KhatibNational Coalition leader

Internationalcommunity ispartly responsiblefor rise ofextremism, scholartells Roula Khalaf

‘The wronginternationalpolicies have ledto extremism’

Moaz al­KhatibSyrian opposition leader

Syrian rebelsclean theirweapons inMaaret Misreen,near Idlib, thisweek AP

SYRIA UPRISING

By Charles Clover inMoscow and Michael Peelin Abu Dhabi

Senior Russian officialshave admitted publicly forthe first time that rebelforces might push PresidentBashar al-Assad from powerin Syria, in a sign that Mos-cow may be preparing forthe defeat of its strongestally in the Middle East.

“One must look the factsin the face,” the Russiannews agency RIA Novostiquoted Mikhail Bogdanov,deputy foreign minister, assaying. “Unfortunately, thevictory of the Syrian opposi-tion cannot be ruled out.”

Mr Bogdanov said theSyrian government was“losing control of more andmore territory” and thatMoscow was preparing con-tingency plans for Russiancitizens in case of evacua-tion. Also yesterday,Anders Fogh Rasmussen,Nato secretary-general, wasreported as saying hethought the Syrian govern-ment was nearing collapse.

Mr Bogdanov’s commentscame as a car bomb killedmore than a dozen peoplesouthwest of Damascus,according to the state newsagency. No one claimedresponsibility for theattack.

Syrian government forceshave fired Scud missiles atrebel groups in recent days,according to the US andBritish governments, in amove some have seen as asign that the regime maybe running out of options.Syria yesterday denied theuse of Scud missiles.

Experts on Russian for-eign relations said MrBogdanov’s admission didnot presage a change inRussia’s policy on Syria,nor would Russia rethinkits opposition to UN sanc-tions against Damascus.

Russiabracedfor fallof ally

DECEMBER 14 2012 Section:World Time: 13/12/2012 - 18:21 User: jamesa Page Name: WORLD2 USA, Part,Page,Edition: USA, 3, 1

4 ★ FINANCIAL TIMES FRIDAY DECEMBER 14 2012

By George Parker in Londonand Alex Barker in Brussels

A banking union dealstruck in Brussels was a“significant moment” inforging a new relationshipbetween Britain and theeurozone, the UK chancel-lor of the exchequer saidyesterday.

George Osborne believesthe agreement will providesafeguards for the City ofLondon and lays down theprinciple that the rights ofnon-eurozone membersmust be protected as single

currency countries movetowards closer union.

However, some in Brus-sels argue that MrOsborne’s deal is only aholding operation and Lon-don’s competitiveness maybe undermined if bankingunion is a success.

The banking union dealincludes a provision thatthe European Central Bankshould not discriminateagainst any member state“as a venue for the provi-sion of banking or financialservices in any currency”.

Mr Osborne told MPs the“non-discrimination” clausewas important. Britain istaking the ECB to courtover a move that couldforce London-based clearinghouses to decamp to theeuro area. The risk to Lon-

don was highlighted lastweek by Christian Noyer,the Bank of France gover-nor and an influential voiceon the ECB governing coun-cil, who told the FinancialTimes: “We are not againstsome business being donein London but the bulk ofthe business should beunder our control.”

The deal lays down newvoting rules for the Euro-pean Banking Authority,which advises on technicalstandards, stipulating thatany decisions can beblocked if they do not com-mand a simple majority ofnon-euro countries.

Britain has lavished dip-lomatic effort on the latteraspect of the agreement,which recognises for thefirst time the principle that

eurozone countries cannotimpose decisions that areopposed by most “outs”,even if the precise votingmechanism may not berepeated in other areas ofthe single market.

The question of how Brit-ain preserves its say in thesingle market in the face of

possible “caucusing” bycountries in an ever moretightly knit eurozone is pre-occupying David Cameronat a European summit thatbegan yesterday in Brus-sels. “The European Union,the eurozone, needs a bank-ing union but Britain won’tbe part of this bankingunion and we have properlyprotected our interests inthe single market,” MrCameron said.

However, Andrew Tyrie,who chairs the UK House ofCommons Treasury com-mittee, said he wanted tostudy the legal fine print.

Open Europe, a think-tank, pointed out that thevoting deal for the Euro-pean Banking Authoritywould have to be reviewedif fewer than four of the

EU’s 27 members stayedoutside the banking union.

A senior EU officialagreed: “It is a precedentbut it all becomes an issuewhen the banking uniongrows to 24 or 25 and it hasa common resolution anddeposit scheme. Then thecaucusing fears of the Britswill come home to roost.”

The biggest threat to Lon-don was that banking unionwould be a success anddeemed to be more crediblethan the financial architec-ture and guarantees pro-vided by the UK, the officialsaid. “The risk is that in themedium term the continen-tal banking system providesmore stability. It won’t be aproblem of access but abusiness decision to relo-cate.” Alexandria Carr, a

former UK Treasury lawyernow at law firm MayerBrown, said the UK and itsallies appeared to havesecured important safe-guards to ensure that thebanking authority was notdominated by countrieswithin the banking union.

“It also appears that theUK will be joined by Swe-den and the Czech Republicoutside the banking union,”she said. “This will helpensure that the UK is notisolated but time will tellwhether this division marksthe genesis of a two-speedEU, with the participatingcountries moving towardsan ever closer union.”

Analysis, Page 7Editorial Comment, Page 8Lex, Page 12

National bank supervisors

Czech Republic

SwedenUK

Includes 17 eurozone members

and seven other EU countries

Singlesupervisory

mechanism under ECB

Outsidebanking union

First step to banking union

ECBgoverning council

Co-ordinates supervisors

A majority of banking union

outs and of ins required for any

decision

EuropeanBanking Authority

Rest of the 6,000 banks(including all but one

German savingsbank)

200 biggestbanks with assets of

more than €30bn or 20%of their home country’s

economic output

FT Graphic

Oversees

Votes on technical rules

Votes on technical rules

Sets technical rules

Sets technical rules

Has the right to supervise in an emergency at

request of European Stability Mechanism

Have direct responsibility for

Direct responsibility for

Osborne hails EU banking union deal

One exhausted EU officialdubbed it “the miracle”.But before a legal text oncreating a single banksupervisor had even beenreleased, the battle lineswere already drawn overthe next phase of bankingunion: joint rescues forfailed banks.

This first step – commonsupervision – was nearunthinkable at the begin-ning of this year. WhenEuropean finance ministersagreed at 4am yesterday tosurrender oversight ofnational lenders to theEuropean Central Bank itdid, after all, represent themost ambitious integrationscheme since the creationof the single currency.

But the architects ofEurope’s nascent bankingunion know that it is househalf built. Common supervi-sion must be followed by acommon means for windingup troubled lenders, and acommon financial backstopfor dealing with a bankingcrisis.

“Getting them to agree totransfer powers was hardenough,” said one seniorofficial closely involved inthe four months of gruel-ling talks. “Resolution isinevitably about money andthat will be a differentorder of difficulty.”

The next stop on the roadto banking union is toalign, within the next sixmonths, the indispensablenational rules covering eve-rything from bank capitalrequirements to the emer-gency powers national gov-ernments have to deal withailing banks.

This is the so-called “sin-gle rule book”. But itremains at national level,providing a common lan-guage across 27 memberstates, rather than a cen-tralised system.

There is dispute abouthow quickly to push for-ward with much more

ambitious plans for a Euro-pean resolution authorityand backstop. France andGermany are already atodds over timing and scope.It is the beginning of a longand contentious fight.

Without a Europeanframework for handlingfailing banks, critics arguethe ECB would be ham-strung. Supervision wouldbe centralised, but the billand ultimate authority towind up a bank wouldremain national. “That sim-ply will not work, we justhave to hope it is nottested,” said one EU official.

More optimistic diplomatssee the supervision break-through as a turning point.“Psychologically we crosseda line,” said one senioreurozone official. “We man-aged what was thought tobe impossible. The choices,in a way, now becomemuch easier, the logic isremorseless.”

France wants the Euro-pean Commission to bringforward talks on setting upthe EU resolution regime.Even fiscally conservativeFinland is open to the idea.

“We don’t want to standon the brakes,” said JyrkiKatainen, Finnish primeminister. “If the commis-sion wants to start prepar-ing a common resolutionmechanism, that’s fine withus.”

Berlin is less convinced.Before new initiatives, itwants progress on existingnational reforms. It is notsure a common Europeanresolution framework isurgently necessary. And itis not satisfied a commonbackstop or resolution fundis required. It is as reluc-tant as ever to share finan-cial risk at a central level.

This opens a familiardebate for Brussels, echoingthe question of whether theeurozone’s €500bn bailoutfund should recapitalisebanks directly. The crisis-fighting tool was one of themain benefits from centralbank supervision. But Ger-many wants to avoid rais-ing “dangerous” expecta-tions that it will be used.

Indeed, one reason for theECB supervision start datebeing delayed to March 2014or later was to avoid suchrequests. Wolfgang Schäu-ble, German finance minis-

ter, said direct recapitalisa-tion would be legally possi-ble, but said it was “a rela-tively unlikely scenario.” Itwould, of course, requireapproval of Germany’s gov-ernment and its parliament.

More important for Berlinis ensuring the ECB man-ages the Herculean task ofmaking central supervisiona reality for 200 or so banksby 2014. That means settingrules, hiring staff, harmo-nising approaches anddeftly managing relationswith prickly national super-visors.

Looming large over thedebate are the Bundestagelections. German opposi-tion leaders are alreadyaccusing Angela Merkel,German chancellor, of delib-erately delaying ECB super-vision to 2014 to keep the

question of resolution outof next year’s campaign.

Sigmar Gabriel, chairmanof the centre-left SocialDemocratic party, said thechancellor was “playinghide and seek” over bank-ing union by agreeing theprinciple of recapitalisationwhile delaying its usebeyond 2014.

Frustrations are growingin the EU, too. Enda Kenny,Ireland’s prime minister,said EU leaders were “quiteclear” that the option ofrecapitalisation followed adeal on supervision. “It isimportant the citizens ofthe union actually see deci-sions being made and fol-lowed through,” he said.

Additional reporting: byand Gerrit Wiesmann inBerlin and Peter Spiegel andJamie Smyth in Brussels

Battle linesdrawn fornext stage ofintegrationRule bookNow supervisionhas been agreed,the focus is onjoint rescues,write Alex Barkerand Quentin Peel

By Alex Barker in Brussels

Bankers’ bonuses in Europewould be capped at twotimes fixed salary under atentative EU agreementthat would mark the mostsevere crackdown on paysince the 2008 financialcrisis.

The European Parliamentand negotiators for memberstates drafted a deal inStrasbourg yesterday thatwould impose a 1:1 bonus tosalary ratio, which can beincreased to 2:1 with thebacking of a supermajorityof shareholders.

The draft terms, whichwould apply to all banksoperating in the EU, willshock the industry, whichwas bracing itself for afixed cap of some kind butwas relying on the UK andGermany to apply pressurefor relaxing the limit.

It is unclear whether theproposed compromise willwin formal backing. Somediplomats think thatCyprus, which is brokeringthe deal on bank capitalrules on behalf of EU mem-ber states, went beyond itsmandate and is unlikely tosecure approval.

MEPs nevertheless exp-ressed confidence that adeal on legislation to imple-

ment the Basel III bank cap-ital accords, which includethe restrictions on bonuses,could come as soon as nextweek.

“An agreement is withinreach,” said Philippe Lam-berts, one of the lead MEPsin the negotiation. “There isa bonus compromise on thetable that the parliament isprepared to go for.

“But it already representsa very considerable conces-sion by the parliament,” headded, referring to MEPs’demanding a ban on allbonuses exceeding salary.“This compromise willmean these executives andtraders will still be able totreble their base salary.”

However, other senior fig-ures involved in the talksexpressed serious doubtsthat the list of outstandingissues would be resolvedthis year. That would meanIreland will assume respon-sibility for negotiating theresulting compromise.

Britain will lead calls forthe bonus cap to bescrapped or raised signifi-cantly. But its strong standis relatively isolated in theEuropean Council, espe-cially because ministers arereluctant to suffer politicalfallout from defending therights of highly paid bank-ers. A final decision can betaken by majority vote.

Berlin has put out coun-terproposals that wouldimpose a strict cap on cashpayments and looserrestrictions on deferred pay-ments. The European Par-liament, by contrast, isdemanding an absolute capon total pay relative tofixed salary.

Banks warn that impos-ing such stringent restric-tions will force them toincrease fixed salaries, amove that could backfireand increase financial risk.

By James Fontanella­Khanand Peter Spiegelin Brussels

Leaders of Europe’s centre-right parties, includingsome of the continent’smost powerful prime minis-ters, have urged MarioMonti to run for prime min-ister in next year’s Italianelection, Silvio Berlusconihas told the FinancialTimes.

The former Italian primeminister, who precipitatedMr Monti’s resignation ashead of a technocratic gov-ernment last week byannouncing he would seekthe premiership, said lead-ers expressed their supportduring a closed-door meet-ing that both men attended

in Brussels before the EUsummit yesterday.

“Everyone [at the meet-ing] asked him to con-tinue,” Mr Berlusconi saidafter the meeting of theEuropean People’s party,the EU’s centre-right group-ing. “All of us have askedhim to stay . . . It is clearthat the EPP is keen thatItaly doesn’t fall in thehands of the left like inFrance, where everyone isdesperate and is runningaway because of the hightaxes.”

Senior German officialsdenied that Angela Merkel,the German chancellor,who attended the meetingalong with about a dozenother European heads ofgovernment, specifically

asked Mr Monti to run.“She wouldn’t put him in asituation like that,” saidone, adding that Ms Merkelhad simply repeated that itwas up to the Italian peopleto make their choice.

Other officials in attend-ance said no explicitrequest was made. But Fin-land’s Jyrki Katainen, oneof the centre-right primeministers present, said hisfellow leaders expressedsupport for Mr Monti, anaccount confirmed by sev-eral others there.

“It is not a secret thatMonti’s colleagues here aresupporting him verystrongly or what he hasdone,” said Mr Katainen. “Ifthey manage to find an alli-ance of moderates behind

Monti, it would be verygood.”

Participants in the meet-ing, which Mr Monti agreedto attend only at the lastminute, said Mr Berlusconireiterated an offer made onWednesday to stand aside ifMr Monti decided to run.But they added that MrMonti gave no indication ifhe would do so, and leaderssaid they did not press him.

“Monti didn’t say any-thing,” said Mr Katainen.“But we didn’t want to puthim in the hard place wherehe should say something,because he obviously didn’twant to say anything.”

Although the pre-summitcaucusing of centre-rightleaders is a regular occur-rence, Mr Monti has never

attended in the year he hasbeen prime minister.

Mr Monti attended withthe full knowledge that MrBerlusconi would be inattendance, aides said. Themedia tycoon and formerprime minister is still headof Italy’s primary centre-right party, People of Lib-erty, and was invited as theparty president.

The men each addressedthe group and sat a fewseats from each other.Aides said the two men didnot have a separate bilat-eral meeting, however.

Officials in attendancesaid they believed that MrMonti’s attendance was asignal he was preparing torun, but his aides insistedhe had made no decision.

“Monti’s decision to cometo the EPP is a positivesign,” said Mr Berlusconi.“If Monti doesn’t run, if wecan’t put together all cen-tre-right parties, the centreleft will win. Monti is a per-sonality that can unite allthe moderates in Italy.”

In the interview, Mr Ber-lusconi said he first offeredto stand aside and allow MrMonti to lead Italy’s centreright two months ago.“Now let’s hope,” he said. “Iknow it’s hard for himbecause, for somebody usedto being supported by eve-rybody, it can be diminish-ing to take one side.”

Additional reporting byQuentin Peel in Brussels

Inside Business, Page 14

Europe’s centre­right leaders join Berlusconi in urging Monti to stay

EU seeksto pegbankers’bonusesto salary

‘There is a bonuscompromise on thetable that theparliament isprepared to go for’

Silvio Berlusconi: ‘Everyoneasked [Monti] to continue’

Sigh of relief greets ‘major step forward’

Europe’s banks breathed asigh of relief yesterday,praising the agreement onbanking union, write PatrickJenkins and BrookeMasters.

Simon Lewis, head of theAssociation for FinancialMarkets in Europe, the mainlobby group for investmentbanks, called the deal “amajor step forward and alsoan essential element inresolving the eurozonecrisis . . . It is essential thatthis momentum ismaintained.”

Banks hope union willreverse the disintegration ofthe European single marketthat has accompanied thecrisis, with national

regulators protectingdomestic interests at theexpense of cross­borderbusiness.

“What has beenannounced by the EUfinance ministers is aEuropean Banking Union­lite,” said Ronit Ghose, ananalyst at Citigroup, pointingout that the two otherpillars of banking union, aresolution regime and aregional deposit guaranteesystem, will be trickierchallenges.

Bob Penn, a partner atlaw firm Allen & Overy, said:“In the words of Churchill,this represents not so muchthe beginning of the end asthe end of the beginning.

We will now see a furiousscramble towardsimplementation.”

The German savingsbanks, which wanted to stayunder national supervision,said they would havepreferred a higher cut­offabove which centralsupervision kicks in, but the€30bn figure means justone savings bank,Hamburg’s, will fall into theEuropean Central Bank’sambit.

Germany’s private bankswere much more welcoming,saying the outcome wasclose to their wishes,retaining proportionality andnot overburdening smallerbanks.

UK minister praises‘non­discrimination’Speculation overtwo­speed Europe

More atFT.com●Live blogFollow latest events fromthe eurozone summitwww.ft.com/eurozone

●Banking union in­depthAnalysis of the politicsof a proposed bankingunion and theentrenched interestswww.ft.com/worldweekly

●Lex videoThe banking union deal:what has been agreed andwhat is still to be donewww.ft.com/lexvideo

●FT DataMario Monti’s programmeof liberalisation was meantto put Italy back on trackfor growth. Has it worked?www.ft.com/ftdata

FT SERIES

For news, analysis andinteractive features onbanking union, go towww.ft.com/bankunion

BANKING UNION

EUROZONE WOES

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FINANCIAL TIMES FRIDAY DECEMBER 14 2012 ★ 5

DECEMBER 14 2012 Section:Ad Page Time: 13/12/2012 - 12:30 User: baxterw Page Name: AD EXXON, Part,Page,Edition: LON, 5, 1

6 ★ FINANCIAL TIMES FRIDAY DECEMBER 14 2012

As Hidenori Hashimoto’scampaign van sweeps pastprefabricated homes aroundthe tsunami-devastated cityof Rikuzentakata in north-east Japan, its roof-mounted loudspeakers blareout his hoarse refrain:“House reconstruction isthe top priority!”

It is a slogan that shouldresonate with voters inRikuzentakata, which lostits city centre in last year’sdisaster and where 5,500people – about a quarter ofthe population – stillendure cramped temporaryaccommodation.

Yet, Mr Hashimoto’s elec-tion pledge – shared by hisopponents – is heard withscepticism by residents dis-illusioned with a politicalclass that for most of the 21months since the tsunamihas been consumed byparty and factional feuding.

It is hard to feel hopefulabout Sunday’s electionwhen you are living in atemporary house and work-ing in a tent in the coldnortheastern winter, saysTomiko Chida, one of manylocals labouring to revivethe city’s oyster industry.

“We wonder whether thepoliticians are only think-ing about their own fac-tions rather than the peopleaffected by the disaster,”Ms Chida says.

Such dissatisfaction ishardly restricted to the dis-aster area. Across thenation, grumbling about theparties and candidates onoffer has been a quiet butpervasive soundtrack to anelection that inspires littlepassion even among politi-cal enthusiasts.

When the Jiji newsagency asked voters lastmonth which party theysupported, only 17 per centchose the opposition LiberalDemocratic party – which isexpected to win power onSunday – while 65 per centdid not support any party.

Voters complain aboutparties’ fuzzy stance onsuch issues as nuclearenergy – both the LDP and

the ruling Democratic partyare split on its future – andbewildered by a rapidlychanging roster of partiesbidding to become a politi-cal “third force”. Thatmany groups look like alli-ances of convenience addsto the disillusionment.

“There’s a lot of new par-ties, but I have no ideawhich to vote for,” says one68-year-old carpenter shop-ping at a supermarket setup in a temporary structureat the edge of the wastelandthat was the city centre.

Gerald Curtis, an experton Japan at Columbia Uni-versity in the US, says theLDP looks set for victorynot because of any strongendorsement of its policies,but because the rulingDPJ’s three years in govern-ment have been marked bycrises and policy failures.

“The public is saying tothe DPJ, we gave you achance and you blew it,”Prof Curtis says.

The DPJ is expected tohold its seat in the constitu-ency that contains Rikuzen-

takata – which it won in a2009 landslide – in partbecause incumbent ToruKikawada is vice-ministerfor reconstruction.

Mr Kikawada has a per-sonal understanding of theplight of tsunami survivors– he lost his parents, wifeand a son to the disaster.

But with only 500 homesbuilt so far – most by peoplewho owned land – the per-formance of Mr Kikawadaand the DPJ wins littlepraise. “We don’t feel mucheffect from his work, saysMs Chida. “We’d like to seea bit more.”

Takashi Kubota, Rikuzen-takata’s deputy mayor, saysthe new reconstructionministry that Mr Kikawadahelps lead is “better thannothing”, but that bureauc-racy remains an impedi-ment to revival.

A plan to merge threemiddle schools into onenew facility is blockedbecause the education min-istry will not approve thelarger site that planners sayis needed, Mr Kubota saysby way of example.

Supporters of the localLDP candidate, the hoarseMr Hashimoto, say he couldpush harder for governmentaction, a claim also sharedby backers of Naomi Sato, a“third force” contender.

But Prof Curtis fears theopportunity has been lost tocreate the policies neededto revive a region that wasin decline even before thetsunami. “It will be a deso-late area of old people andfishermen – and the respon-sibility for that lies with thepoliticians,” he says.

www.ft.com/worldvideo

Tsunami victimsmired in moodof disillusionJapan electionLike the rest of thenation, most peoplein the northeast donot support anypolitical party,writes Mure Dickie

‘We wonderwhether thepoliticians are onlythinking abouttheir own factions’

By Mure Dickie in Tokyo

China turned up the heat inits simmering dispute withJapan yesterday when forthe first time it used a gov-ernment aircraft to chal-lenge Tokyo’s control of acontested island group.

Tokyo scrambled fightersand made a formal diplo-matic protest after the Chi-nese maritime surveillanceaircraft was spotted in theterritorial airspace of theremote and uninhabitedislands, which Tokyo callsthe Senkaku but Beijingknows as the Diaoyu.

The flight, which the Jap-anese defence ministry saidwas the first violation ofJapan’s airspace by a Chi-nese official aircraft sinceat least 1958, came justthree days before a Japa-nese general election inwhich the Senkaku disputeis already a campaign issue.

“It is extremely deplora-ble,” said Osamu Fujimura,

Japan’s chief governmentspokesman.

But a Chinese foreignministry spokesman, HongLei, said Chinese aerial sur-veillance of the Diaoyuislands was “completelynormal” and that it wasJapanese vessels and air-craft that were intruding onChina’s territory.

The incident came asChina marked the 75thanniversary of the Nanjingmassacre, one of the mostnotorious incidents inJapan’s 1937-45 invasionthat is still a source of fric-tion between Asia’s twoleading powers.

China has in recentmonths routinely sent mari-time surveillance ships intothe territorial watersaround Senkaku, challeng-ing Tokyo’s effective con-trol of a group that Beijingsays Japan stole in the late19th century.

The use of an aircraft toaccompany the ships is sureto fuel calls in Japan formore assertive actionagainst China and for thestrengthening of coastguard and naval forces inthe area. Japanese mediasaid the incursion by the

small two-engined propelleraircraft had initially goneundetected by radar oper-ated by the Self DefenceForces, as Japan’s militaryis officially known.

The Japanese air forcescrambled eight F-15 fight-ers and an airborne early-warning aircraft in resp-onse to the Chinese flight,the defence ministry said.However, NHK, the Japa-nese state broadcaster,

reported that the Chineseaircraft had already left theislands’ territorial airspaceby the time the fightersarrived on the scene.

The island dispute hasbecome a top foreign policyissue in campaigning aheadof Sunday’s election inJapan, a vote likely toresult in a markedly morenationalist foreign policy.Shinzo Abe, leader of theopposition Liberal Demo-

cratic party and favouriteto become prime minister,has stressed the need formore robust defence of theSenkaku.

Mr Abe has promisedhigher spending on Japan’scoast guard and defenceforces, saying greater mate-rial resources are essentialto block Chinese incursions.

The LDP has also pledgedto consider stationing Japa-nese government officials

on the islands, a move thatwould be considered hugelyprovocative by Beijing.

Chinese officials say theirassertive challenges to Jap-anese control of the islandsare a response to what theycall the Japanese govern-ment’s illegal purchase ofthree of the islands fromtheir private owner.

Japanese officials say thegovernment bought theislands, which it already

rented, in order to preservethe status quo by blockingan effort by the rightwingthen-governor of Tokyo tobuy them for development.

Tokyo will have to decidehow firmly to respond tofurther Chinese flights. Jap-anese coast guards chal-lenge Chinese state vesselswhen they enter Senkakuwaters but do not seek toblock their passage.

Zhou Yongsheng, a for-eign policy expert at ChinaForeign Affairs University,said China would “normal-ise this kind of flight, sincewe already announced ourterritorial baseline”.

However, Mr Zhou saidsuch flights would be lim-ited, as the State OceanicAdministration’s maritimesurveillance departmenthad only four aircraft.

While Beijing has so farnot used military assets tochallenge Japan on theSenkaku, many Tokyo offi-cials worry about China’sgrowing military power.

Additional reporting byLeslie Hook and Simon Rab-inovitch in Beijing

‘Strong army’ Xi,www.ft.com/beyondbrics

Airspace breach deepens China­Japan rift Modi targetsnational prizeGujaratis went to the pollsyesterday in an electionthat could decide whetherthe state’s chief ministerwill fulfil his ambition tobecome premier of India,writes Victor Mallet inNew Delhi.

Some critics hold Hindunationalist Narendra Modiresponsible for theslaughter of hundreds ofMuslims by mobs inGujarat in 2002, a chargehe vehemently denies.

Mr Modi is widelyexpected to win a fourthterm in Gujarat.

But his chances ofbecoming the next primeministerial candidate forthe Bharatiya Janata partywill depend on the scale ofhis victory.

The BJP has 117 of 182seats in Gujarat’sassembly. If Mr Modisecures even more, thatwould give him a platformto launch his bid.

A general election is dueby mid­2014. But voterweariness with the man incharge for more than adecade, and the creationof a breakaway Hindunationalist party, couldweaken his prospects.

In full: www.ft.com/india

WORLD NEWS

A flock of pigeons over a ceremony in Nanjing, China, yesterday to mark a massacre by Japan’s forces 75 years ago Reuters

Beijing aircraft fliesover dispute islandsTokyo scramblesF­15 jet fighters

A police officer searches forbodies after the 2011 tsunami

DECEMBER 14 2012 Section:World Time: 13/12/2012 - 17:56 User: jamesa Page Name: WORLD4 USA, Part,Page,Edition: EUR, 6, 1

FINANCIAL TIMES FRIDAY DECEMBER 14 2012 ★ 7

ANALYSIS

for the ECB is a further step. Morebroadly, he says, structural reformsare helping to reduce current-accountdeficits and narrow competitivenessgaps between euro-area countries.Even though the ECB cut its growthforecast for 2013, Mr Draghi insistsausterity can work.

“To give up now, as some suggest,would be tantamount to waste thegreat sacrifices made by the citizensof Europe,” he says. He also has notime for suggestions that surpluscountries such as Germany shouldinflate away some of their competitiveedge. “Inflation is not a policy tool;one does not toy with inflation.”

Mr Draghi concedes that the crisishas been marked by governmentsfeeling less urgency to act themoment market pressure recedes. TheOMT programme, paradoxically, feedsinto the vicious circle. Yet Italian two-year bond yields have fallen from aJuly peak of 5.3 per cent to just over 2per cent. Their Spanish equivalentshave fallen from more than 7 per centto just under 3 per cent.

Overall, the sense is that Mr Draghi– whatever his concerns about futurethreats to the euro such as theuncertainty in Italy after Mr Monti’sannounced departure or popularunrest in Greece – firmly believes inthe steady progress of Europe and theever greater pooling of sovereigntyamong eurozone nations.

Towards the end of an hour-longinterview, he produces a printout of aquote from Zygmunt Bauman, thePolish sociologist: “Each [European]house is much more at risk of losingits specific identity if it is exposedwithout protection, that is withoutthis European shield.”

The argument is that heavilyindebted countries have already lost apart of their sovereignty because theyhave lost power over their economicpolicies. “Sharing common rules forthem actually means to regainsovereignty in a shared way ratherthan pretending to have a sovereigntythey’ve lost a long time ago,” MrDraghi says.

That might take some moreexplaining in Germany. Has he wonover public opinion? “I don’t know.But I know we have a duty to explain,and we are really working very, veryhard on that front.”

Was there ever a time in 2012 when,amid all the pressure, he had a senseof relief? He smiles. “Was there such amoment?”

In any case, dwelling on the pastis not what animates Mr Draghi.“That’s not the way I function. I lookforward.”

On the eve of the 2012Olympic Games, MarioDraghi found himself inthe august setting ofLancaster House in

London’s royal district. He was apanellist at an official event intendedto drum up foreign investment to theUK, but the president of the EuropeanCentral Bank had weightier matterson his mind.

Europe’s single currency wasdisintegrating amid soaringborrowing costs in Greece, Spain andMr Draghi’s native Italy. Speculationthat the eurozone was heading for abreak-up, with incalculable financialand political consequences, wasrampant. It was time to draw a line inthe crisis.

“Within our mandate, the ECB isready to do whatever it takes topreserve the euro,” Mr Draghi said,pausing for effect. “And believe me, itwill be enough.”

Mr Draghi’s advisers had beenforewarned that he was preparing tomake a forthright statement, but nonehad been apprised of the precisewording. In retrospect, the Julydeclaration – which in effect daredfinancial markets to challenge theECB’s unlimited firepower – may wellbe seen as a turning point in thethree-year-old crisis.

“What I thought was that themarkets should know what our stancewas,” Mr Draghi, 65, recalls in aninterview with the Financial Times inhis office on the 35th floor of theECB’s Frankfurt headquarters. Askedif he had rehearsed his pause, helaughs. “No, I’m not really thattheatrical.”

The impact of Mr Draghi’s two briefsentences was immediate – anddurable. His central role in the eurocrisis – the biggest story of 2012 – hasearned him the FT’s vote as Person ofthe Year. Other figures, notablyChancellor Angela Merkel of Germanyand Mario Monti, the outgoingreformist prime minister of Italy, haveboth played vital parts. But Mr Draghihas been the leading protagonist,insistently prodding governments andcentral banks to support the measuresnecessary to preserve the euro.

Mr Draghi draws his skills from avaried career: central banker,economist, commercial banker(Goldman Sachs) and public servant-cum-diplomat. He is, above all, astrategist who reflects deeply uponproblems and, once his mind is made,is hard to budge. He has beensomewhat bolder than hispredecessor, Jean-Claude Trichet.

Under Mr Trichet, the ECBresponded faster than the Bank ofEngland and the US Federal Reservein the first phase of the globalfinancial crisis in the summer of 2007,when credit markets froze over; butthe Frenchman later found himselfhemmed in by the Bundesbank, theGerman central bank hostile towardsthe twin sins of debt and inflation.

Mr Draghi took over from MrTrichet just over a year ago. Hetold friends at the time that itwas far from guaranteed that hewould succeed, notwithstanding theformidable political will behind thesingle currency. He too was worriedabout the Bundesbank and Germanpublic opinion in general. But he wasdetermined to give it his best shot.

Fighting the ‘tail­risks’His first move was to introduce thelonger-term refinancing operation forbanks. As he says, the LTRO (whichunfolded in two phases in December2011 and February 2012) removed thepossibility of a banking crisis causedby a lack of funding. By providingshort-term liquidity for up to threeyears, the ECB helped depress spreadsin the sovereign and credit derivativemarkets.

Although the initiative calmedmarket worries about banks, it didnot tackle the other major faultline inthe eurozone: the wideningdifferential in borrowing costsbetween stricken debtor countries(Greece, Spain, Italy, Cyprus) andcreditor countries led by Germany. Bythe spring of 2012, these spreads hadbecome life-threatening, exacerbatedby “tail-risks” that the eurozonewould fall apart, with Greece beingthe first to exit.

Faced with this catastrophicscenario, Mr Draghi and the ECB staffcame up with a new lifeline: outrightmonetary transactions. Even thoughnone of the debtor countries has sofar applied – preferring to avoid thefiscal conditions they would beobliged to follow – the results havebeen a dramatic fall in borrowingcosts for peripheral countries and arenewed confidence that the euro canand will survive.

Under the OMT programme, theECB promises to step in and buyunlimited quantities of bonds with amaturity of less than three years ofany country with a distressed debtmarket. Countries must apply for helpfrom the eurozone’s rescue fund, theEuropean Stability Mechanism, andagree to its fiscal conditions. Equallyimportant, before it buys, the ECBmust satisfy itself that borrowing

costs are being skewed higher byspeculation of a euro break-up.

The OMT refines the Trichet-erabond-buying programme, thesecurities market programme (whichalso drew fierce German criticism).But whereas SMP was limited andunconditional, the OMT is conditionaland unlimited – a crucial innovationthat has led to a ferocious backlash inGermany orchestrated in large part bythe Bundesbank and its president,Jens Weidmann, who also sits on theECB governing council.

Mr Draghi is far too much of adiplomat to criticise Mr Weidmannby name, but in the weeks running upto the September announcement ofthe OMT programme, he took theunprecedented step of identifyingthe “Buba” president as havingreservations about the plan. MrWeidmann went on to cast the solevote against it and has subsequentlyembarked on a public campaign inGermany, at one point citing Goethe’sFaust, where Mephistophelesencourages a heavily indebted HolyRoman Emperor to print money notbacked by a commodity such as gold,and thereby stokes hyperinflation.

The image, of course, summons upthe ghosts of Germany’s 1920s past.The fact that the ECB – moulded inthe 1992 Maastricht treaty on the linesof the inflation-fighting Bundesbank –is now committed to buying bonds ofheavily indebted countries is regardedin Germany as akin to betrayal. BildZeitung, the German tabloid that oncewas so enamoured with Mr Draghithat it presented him with a Prussianspiked helmet, now thunders that theECB has written “a blank cheque” todebtor countries.

One powerful voice, however, hasremained silent: Ms Merkel. Mindfulof German public opinion ahead of theSeptember 2013 election and the risksof antagonising the respectedBundesbank, the German chancellorhas trodden a fine line. She has beenadamant that financial aid to debtorcountries must be conditional. Theymust “do their homework” in terms ofstructural reforms and reducingbudget deficits. But faced with thethreat of a euro break-up, she hastilted towards Mr Draghi.

Mr Draghi insists he did not preparethe ground for OMT with thechancellery in Berlin and did notconsult European capitals before his“whatever it takes” pledge. “Thedecision was taken in total and fullindependence,” he says.

Crucially, however, Mr Draghi didpersuade Ms Merkel and fellowexecutive board members – notablythe Dutch and Finnish central bankchiefs – that the ECB bond-buyingprogramme was both conditional andwithin its mandate. It is intended, inhis words, to fight “financialfragmentation” within the eurozone.Pre-OMT, speculators and shortsellers enjoyed a near one-way bet:driving up bond yields in debtor

countries on the notion that the eurowould break up. The process was avicious circle.

Mr Draghi’s ability to win theconfidence of Ms Merkel and, at leastfor now, the financial markets isimpressive. Some credit his steelyresolve with the emotional hardshiphe endured in his early years. Bornand raised in Rome, both his parentsdied while he was still a teenager,leaving him in the care of an aunt. Heattended a Jesuit school and LaSapienza University in Rome, andthen went to the MassachusettsInstitute of Technology for hiseconomics PhD.

Diplomatic resolveYears later, after a decade at theItalian Treasury, he headed the Bankof Italy, where he spent much of histenure dealing with the slipperyfigure of Silvio Berlusconi as primeminister. In Italy, the central banker’spolitical skills are much admired.“Whereas Mario Monti is a Catholic,Mario Draghi is the Pope,” says afriend of both men.

So, will Mr Draghi go down inhistory as the man who saved theeuro? “This year will in my view beremembered as the year when thelong-term vision for the euro and theeuro area was relaunched,” he says.But other actions were also vital,notably the June European summit.“For the first time in many years,[leaders] laid out a medium-termvision for a genuine economic andmonetary union made by four pillars:fiscal union, the so-called bankingunion, the economic union andpolitical union.”

This week’s agreement on bankingunion and a bigger supervisory role

‘Whatever it takes’: the Italiandetermined to save the euro

Person of the Year With two short, unscripted sentences, ECB president Mario Draghiturned the tide in the three­year­old eurozone crisis. By Lionel Barber and Michael Steen

Forward thinker: Mario Draghi, head of the European Central Bank, says 2012 will be remembered as the year when the vision for the euro was relaunched Martin Leissl

ECB chief’s life storyBorn in Rome on September 3 1947,Mario Draghi’s father was an officialat the Bank of Italy, his mother achemist. After his parents died duringhis teenage years, Mr Draghi and hissiblings went to live with an aunt. Heattended the Istituto MassimilianoMassimo in Rome, a Jesuit school.

Having earned a doctorate ineconomics from the MassachusettsInstitute of Technology in 1977, in the1980s he taught at the University ofFlorence and served as an executivedirector at the World Bank. In 1991he was named head of the ItalianTreasury, where he earned thenickname “Super Mario” for steeringthe country away from default. From2002 to 2005 he worked at GoldmanSachs, and from 2006 to 2011 wasgovernor of the Bank of Italy as wellas chair of the Financial StabilityBoard. He was appointed president ofthe ECB in November 2011.

Married with two children, MrDraghi used to enjoy climbing butnow runs and plays golf.

MarioDraghi inhis ownwords. . .

‘I am what I am, really. I think onething that is required for this job,for me and my colleagues in thegoverning council, is that you haveto think with your head, andexternal pressures do not reallyhave a role to play in yourdecision­making’September 2012, in response to aquestion on how close his monetary­policy views were to those of JensWeidmann, president of the GermanBundesbank

‘I would not identify with thiscaricature of it being a southerncabal or an Italian thing’September 2012, on accusations hewas conducting a “lira­isation” of theeurozone

‘You might have seen that I amnot the only central banker who isa member of the Group of Thirty.Just to name a few: my predecessorJean­Claude Trichet and MervynKing, who were not GoldmanSachs bankers; Governor Zhou[Xiaochuan] of China, who was nota Goldman Sachs member;Masaaki Shirakawa, who was not aGoldman Sachs member; and MarkCarney, who was a Goldman Sachsmember’December 2012, on accusations in theGerman media that his membership ofthe Group of Thirty, which gatherstogether central bankers and bankexecutives, and his past at GoldmanSachs meant that he was too close toprivate banks

‘Mama mia, inflation is just asmuch a part of life to Italians astomato sauce and pasta! SignoreDraghi may try to deny it asmuch as he likes’Bild Zeitung, February 2011(The newspaper later changed itsposition to back Mario Draghi)

Mr Draghi ‘is on the best pathtowards going down in history asthe money forger of Europe’Alexander Dobrindt, secretary­general ofthe Bavarian Christian Social Union,sister party of Angela Merkel’s CDU,accusing the ECB chief of turning theinstitution into an “inflation bank” inan interview with Bild am Sonntag inAugust 2012

‘Draghi’s statement to do “whateverit takes” really changed the crisis towhere we are today. It did threeimportant things. It caused spreadson government bonds to narrow; itallowed stock markets to bounceback; and it slowed, and in manycases stopped, capital flight fromthe periphery. That statement wasextremely powerful and allowed usto get [to] where we are today’Jay Ralph, chairman of Allianz AssetManagement

. . .andwhatothers sayabout him

5.3%Italian two­yearbond yieldsbefore Draghi’sspeech

2%Italian two­yearbond yields now

6.8%Spanish two­yearbond yieldsbefore Draghi’sspeech

2.8%Spanish two­yearbond yields now

On the webLionel Barber interviews Mario Draghi,president of the European Central Bank.See the video at www.ft.com/draghi

DECEMBER 14 2012 Section:Features Time: 13/12/2012 - 19:27 User: paleita Page Name: BIG PAGE, Part,Page,Edition: USA, 7, 1

8 ★ FINANCIAL TIMES FRIDAY DECEMBER 14 2012

“Without fear and without favour”

Friday December 14 2012

● To contribute please email: letters.editor@ft.com or fax: +44 (0) 20 7873 5938 Include daytime telephone number and full address ● For corrections email: corrections@ft.com

LETTERS

Civilisation nevergrows from fearFrom Mr Tim Logan.

Sir, With reference to “Russian‘civilisation’ concept stirsresentment” (December 12): VladimirPutin’s Russian civilisation is littlechanged from that observed by theMarquis de Custine when he wroteof his experiences in travellingthrough Russia in 1839 in Empire ofthe Czar: A Journey Through EternalRussia.

Custine wrote: “In Russia, fearreplaces, that is, paralyses thought.This sentiment when it reigns alonecan never produce more than theappearances of civilisation; whatevershort-sighted legislators may say,fear will never be the movinginfluence of a well organised society;it is not order, it is the veil of chaos;where liberty is wanting, there souland truth must be wanting also.”

President Putin as a former KGBman understands fear quite well. Asfor his understanding of civilisation,that is a matter for history to decide.Tim Logan,Woodside CA, US

Custine: a journey through Russia

Drone warfare is fraught with challengesFrom Lt Col Robert G. Bracknell.

Sir, Gideon Rachman (“America’scovert drone war is out of control”,December 11) condemns the US useof the effective counterterrorism toolof unmanned vehicles for lethalstrikes. He rails against the “moraluneasiness” of unmanned strikesbecause they are “remote” anddisconnected from the reality of war.He muddles around trying to definea line between “war” and“assassination”, when that line isalready well defined: if a lethalstrike is not aimed at a politicalleader or head of state, it is bydefinition not assassination – fullstop. He ignores what is at least acolourable argument underinternational law that unmannedlethal strikes against unprivilegedenemy belligerents are legitimateuses of force in pre-emptive self-defence – particularly if the hoststate where the strike occurs quietly

acquiesces or there is no recognisedgovernment with standing to object.

Mr Rachman argues that“signature strikes” – in other words,targeting a combatant based onevidence of his activities – aresomehow more indiscriminate thanthose based on visual identification,even though signature targeting is asold as war itself (think of a warringstate’s army firing artillery rounds ata building teeming with antennasand radar dishes) and signatureanalysis produces targeting data thatcan be orders of magnitude morereliable than human reporting orvisual identification.

Finally, he takes issue with whichUS agency is conducting the strikes,which misunderstands the issuewholesale – if an intelligence agentcauses a weapon to engage alegitimate target, the only legalconsequence is that the intelligenceagent enjoys no combatant immunity

under the law of armed conflict if heis captured, in this case by an enemythat does not honour the law ofarmed conflict to begin with. Whilethere are domestic reasons thatAmericans might prefer the militaryto conduct strikes over anintelligence agency, none of thosereasons impacts on the legitimacy ofthe strikes themselves. He finallystumbles on to one issue that hasmerit – precedent-setting for otherstates to use unmanned vehicles inviolation of target state sovereignty –then gives it insufficient treatment.

Warfare employing unmannedweapon systems is fraught withlegal, ethical, and moral challenges,but Mr Rachman’s article is full ofred herrings, not meritoriousanalysis.Robert G. Bracknell,Washington, DC, USWritten in a personal capacity only,not as an agent of the US government

Customers trump regulators when it comes to bank capitalFrom Mr David Harrison.

Sir, It is ironic to find the vice-chairman of the Federal DepositInsurance Corporation, ThomasM. Hoenig, reminiscing about thebeneficial impact of caveat emptor onthe level of bank capital, in the dayswhen it was necessary to persuadedepositors to “trust the bank withtheir money” (“Get Basel III right

and there will be no need for BaselIV”, Insight, December 13).

Twenty-three years ago, inDecember 1989, you published mycomment that “the absence ofdepositor discipline, highlighted as aprincipal cause of the savings andloan crisis, could be remedied moreeffectively by reducing thepercentage of insurance cover”.

I warned then of a repeatperformance. Sadly, not only has UScover remained at 100 per cent, butthe level of deposit insurance coverin the UK has risen from 75 per centin 1989 to match the US. Regulatorswill never equal the customer as aconstraint on imprudent bankers.David Harrison,West Horsley, Surrey, UK

Britain may be revitalised outside EUFrom David Campbell BannermanMEP.

Sir, In querying alternatives to EUmembership, Jonathan Powell (“Outof Europe, Britain would be a weaktax haven”, December 12),contradicts his old boss, Tony Blair,who accepted that: “Of courseBritain could survive outside theEU . . . [and] probably get access tothe single market as Norway andSwitzerland do.”

Mr Powell grossly exaggerates the“power and influence” we have inthe EU. If Norway had acommissioner and a few MEPs itwould hardly outweigh its influenceas a self-governing sovereign entity.

Norway is the richest country perhead in the world, partly because itdidn’t join the European EconomicCommunity when Britain did andput its resources into a £200bnsovereign wealth fund, not EUcoffers. It may groan about EUsausage machine legislation, but it’sdoing well. Three-quarters ofNorwegians want to stay outside theEU, and Swiss support for joining isa derisory 15 per cent.

Nor is Switzerland having majorEU difficulties – it remains the EU’sfourth-largest trading partner despiteits size.

Why, too, does Mr Powell scoff atthe Commonwealth when India’smiddle class alone will be 600m in2050 – larger than the EU – andwhen the Commonwealth’s grossdomestic product today outstrips theEU’s? Tata’s Jaguar Land Rover is aharbinger of the future not the past,exporting globally.

What Mr Powell overlooks isthat Britain is the EU26’s largestsingle trading partner. We import£3bn per month more than we exportto the EU: they need us more thanwe need them. What a shamesomeone so senior is so disparaging

about his own country. We nowexport more to the rest of the worldthan to the EU. Only 9 per cent ofour economy is dependent on EUtrade – in contrast to Norway’s30 per cent and Denmark’s 37 percent. Yet the other 91 per cent of oureconomy is increasinglyoverregulated – helping to take theEU from 36 per cent of world GDP in1980 to a projected 15 per cent, worsecase 12 per cent, by 2020. Muchacquis legislation – costing Britain£118bn annually – could be strippedout to revitalise our economy.

I, as an MEP, cannot much“influence” the system: I cannotintroduce any legislation myself, Iam constantly outvoted bycompromising power blocks, and realpower resides with the commission.The UK has just 8.4 per cent of EUvoting power. Meanwhile, the councilis fast losing veto powers:63 vetoes went under Lisbon, 133vetoes since Labour gained power in1997.

I deal with EU free tradeagreements on the InternationalTrade Committee: we, too, couldhave an acceptable FTA as the EU’slargest customer, while negotiatingbetter UK trade deals via theEuropean Free Trade Association.

I fear polished technocrats such asMr Powell favour the EU because it’srun by fellow technocrats at ourdemocratic expense: unelectedcommissioners put two EU placemenin to run Italy and Greece. It avoidsall that messy election stuff.

No, it’s time to trust the Britishpeople, give them all the facts andlet them decide. I fully support theprime minister in offering areferendum, one which includes theoption of leaving the fast-emergingEU political union.David Campbell Bannerman,Conservative, East of England

New York Notebook

Respect for thosewho finish the jobA few weeks ago, I found myselfinspired by an enemy. His name isDerek Jeter and he plays baseball –very well – for the New YorkYankees, my least favourite teamin any sport.

The moment occurred during acritical playoff game between theYankees and the Detroit Tigers.Jeter, who plays the position ofshortstop, ranged to his left to field abouncing ball, winced with pain andfell to the ground, his left anklebroken so badly it required surgery.

But what got me was how Jeterhandled adversity. Slow-motionreplays revealed that after his anklesnapped, he rolled over on theground, reached into his glove and –in obvious agony – flipped the ball tothe Yankee second baseman,Robinson Canó, to keep the Detroitbase runners from advancing.

Jeter completed the play.Watching the action late at night,

in the quiet of my den, I have toadmit that I choked up a bit. As asupporter of New York’s otherbaseball team, the lowly Mets, I have

spent substantial portions of thepast 17 summers hoping thatJeter would fail at everything he did.But there is no denying class. Flaton his back, on the dirt of theYankee Stadium infield, Jeter wasnever greater. There was noquit in the Yankee captain – and Ihad to acknowledge it.

The memory of that night cameback to me a few days ago when Isaw that Jim DeMint, the TeaPartying senator from the state ofSouth Carolina, was giving up hisseat only two years after winning asix-year term, so he could becomethe head of the Heritage Foundation,a conservative think-tank.

It’s hard to know for sure whythe South Carolina Republican issurrendering his power as a senator;it’s possible an unseen factor couldhave forced his hand. But if we takehim at his word, Mr DeMint issimply leaving the Senate early ofhis own accord to do something hesees as more meaningful.

All I could think was: this JimDeMint is no Derek Jeter. He didn’tcomplete the play – and that tells ussomething about the leaders of theconservative movement today. Manyof these people talk a conservativegame. But their actions on the fieldof play suggest a lack of a practical,conservative temperament.

I think we can all agree that aconservative believes in takingpersonal responsibility and, to me,that means finishing what youstarted. Ronald Reagan, the hero ofmodern conservatism, captured thissense of mission by identifying

himself with a sports hero he playedin the movies – “the Gipper”, GeorgeGipp, the Notre Dame football starwho, even on his deathbed, was stilltrying to help his team succeed.

But our current crop ofconservative leaders is proving to besurprisingly flighty – if notdownright narcissistic. After losingher bid to become US vice-presidentin 2008, Sarah Palin quit her job asgovernor of Alaska and wound upstarring with her family in their owntelevision “reality” show. MikeHuckabee, the former Arkansasgovernor, passed on the opportunityto run for the Republican nominationfor president and hosted a Fox Newsprogramme. Now, after Republican

reversals in the 2012 election, MrDeMint is following his own divergentpath, walking away from the Senatewith a nonchalance of Dean Moriartyheading out on the road.

It seems out of character for apublic figure who pledged to live bythe letter of the constitution. If hehad read the document carefully,Mr DeMint would discover we have achamber of Congress for people whowant to serve two years and go theirown way. It’s called the House ofRepresentatives. He took an oathto “faithfully discharge the duties”of a member of the Senate, wheredenizens have six-year terms so theycan serve as a stabilising force inWashington.

Like so many conservatives in theland, Mr DeMint seems moreinterested in talking about thegovernment than in doing somethingabout it. In explaining his departureto CNN, Mr DeMint noted that hehad “spent most of my life doingresearch, working with ideas andmarketing and trying to sell”conservative solutions to theAmerican people. Joining theHeritage Foundation, he said, “is likecoming home”.

In other words, Mr DeMint ismore comfortable on the sidelines –where rightwingers can make bigbucks gabbing about what’s gonewrong in the world. They aren’tlooking to win one for the Gipperany more or to finish the job like aJeter. They are dreamy sorts, off in aworld of their own.

gary.silverman@ft.com‘Who’s Fiscal Cliff?’

Gary Silverman

Europe deliverson banking unionBut unusual decisiveness leads to new, harder questions

Twice this year, the actions ofEuropean leaders have matchedtheir grand rhetoric: in June, whenthey vowed to set out on the roadto banking union, and this week,when they made good on a prom-ise to put the first foundations inplace by the end of 2013. They maynot yet appreciate the full reach ofthe constitutional changes theyhave set in motion.

The deal struck by finance min-isters early yesterday morningconfirmed that political change inEurope is driven by Germany. Incontrast to the proposed EADS-BAE Systems merger, Berlindropped its opposition and madethis deal happen. Intransigence byWolfgang Schäuble, finance minis-ter, now looks like an astute nego-tiating tactic that has secured aGerman imprint on the “singlesupervisory mechanism”. Thisfocuses European Central Banksupervision on the larger banks,while obtaining population-weighted voting for some decisionsof the new supervisory board.

Berlin was able to compromise,too. Economically, it is crucial thatthe ECB was allowed in extremis tointervene in smaller banks. Politi-cally, higher voting hurdles in theEuropean Banking Authority wasthe price paid to temper divisionsbetween banking union “ins” and“outs”. A majority of outs will now

be able to stop the ins from forcingdecisions through en bloc.

There is much to like in the sub-stance of the agreement, even ifonly the broadest contours areclear. It establishes the principlethat a regulator captured by localinterests can be overruled. Thiscaused the crises in Ireland andSpain and set off the lethal spiralbetween bank and sovereign debtacross the eurozone. That such aserious step towards completingthe euro’s infrastructure could betaken without alienating nationson the political periphery of theEuropean project bodes well forthe safety of the single market.

Much uncertainty remains, how-ever. If fewer than five EU mem-bers are outside the bankingunion, the EBA’s double majorityrule will be revisited. That couldhappen soon if only the British,Swedes and Czechs stay out. Evenif the deal on supervision sticks, itstill leaves open the much harderissue of supranational power toshut down or break up bust banks.

This week’s deal no doubt marksreal progress. But as always, theEU chose to erect a new govern-ance structure on top of unre-solved political battles, which willresurface when the new powersbegin to be wielded. This may bethe only way to move forward, butit spells more turmoil ahead.

Challenging ZumaA less dominant ANC would be good for South Africa

South Africa has a history of pull-ing back from the brink at the lastmoment. The ruling AfricanNational Congress conferencebeginning on Sunday would be agood place for the political leader-ship to reflect on how best to do sonow. It has been a tumultuousyear. Rolling public sector protestsand industrial unrest have exposeda festering apartheid-era legacy ofinequality, poverty and failingeducation.

Since his election in 2009, JacobZuma, president of the ANC andthe country, has failed to rise tothe occasion. Worse, he has accel-erated the transformation of theANC from liberation movement topatronage network. In the face ofthis year’s crisis in the mining sec-tor he was weak. He is neverthe-less likely to prevail in the forth-coming leadership contest withKgalema Motlanthe, his deputy.

Mr Motlanthe might be the bet-ter candidate – he is reputed forhis personal integrity, and has arecord as a consensus builder. Buthe is cautious and a stickler forparty protocol. Neither he norMr Zuma appears equipped to pro-vide the leadership necessary torestructure the economy andimbue an increasingly polarisedsociety with renewed purpose.

Victory for either will leave theANC divided. For Mr Zuma it

would entrench the ANC patron-age system. Those members ridinginto position on his coat tails willtoe the line. But Mr Zuma’s contin-uing leadership may also galvanisehis opponents into a more combat-ive stance.

In the short run these divisionscould be destabilising. A victoriousMr Zuma is likely to seek anotherfive-year term as president innational elections in 2014. Were hethen to pursue business as usual,it would risk delegitimising boththe ANC and the state in the eyesof frustrated South Africans.

That would be dangerous. Butthere are also grounds for hope.Splits within the ANC have para-lysed policy making. Next week’sparty conference could hasten thebreak-up of the movement, a nowunwieldy coalition of tycoons,racial nationalists, populists andunions.

In the long run this would begood for South Africa. If the ANCis following in the footsteps ofother African liberation move-ments that shed their sense of pur-pose in the pursuit of power, it ispartly because there has been noeffective opposition. Competitionwithin the party is to be welcomed.But real political contestation atnational level might prevent SouthAfrica from drifting towards amore authoritarian future.

Backing frackingUK’s decision to allow shale drilling gives hope for future

Shale gas may or may not be themiracle cure for the UK’s pressingenergy needs. There is too littlecertainty about how much of thegas that lies trapped between lay-ers of rock deep underground canbe extracted for commercial use.But the government’s decision tolift the moratorium on shale explo-ration is a welcome first step tofinding the answer.

The world has looked on in envyas America’s shale gas revolutiondelivers a once in a generationcompetitive boost to US industry.The cost of natural gas has fallenby almost two-thirds in four years.Britons now pay nearly threetimes as much for gas as Ameri-cans. This disadvantages UK con-sumers and businesses alike.

But concern over the environ-mental impact of the controversialpractice of fracking runs high inthe UK. Critics point out that Brit-ain is more densely populated,making it difficult to extract gaswithout upsetting those who liveclose to drilling operations. The18-month moratorium was imposedafter the process of injectingwater, sand and chemicals under-ground to break up shale rocksparked minor tremors on the out-skirts of Blackpool.

The government has wiselysought to address public concernsby introducing more stringent

safety measures and drilling proce-dures. The industry, in its infancyoutside the US, still suffers from alack of vital seismic and geologicalinformation. Debate also ragesover evidence of water contamina-tion. The regulations aim toaddress these gaps by requiringextensive assessments and moni-toring. The threshold for tremorsis even lower than for industriessuch as coal mining or construc-tion, for example.

There will be critics who claimthat this risks killing any incen-tive to drill. Such complaints aremisguided. The rules have beendesigned to be adapted as moreinformation is gathered and theconsequences of drilling and pro-duction are better understood.This should encourage operators toprospect more sites, rather thanput them off.

It will be many years before Brit-ain can hope for a shale-gas revo-lution of its own. Unlike the US,the UK lacks the onshore infra-structure that a fully operatingindustry needs. And, at themoment, there is only one com-pany drilling exploration wells.Production is still some time away.Nonetheless, in giving a greenlight to fracking, the UK hasopened a door rather than closedone. The hope is that it will lead toa brighter future.

Europe patent lawworth waiting forFrom Mr Nicholas Dreyer.

Sir, A big hooray is due to the – ingeneral, sadly marginalised –European Parliament for passing a50-year overdue system of commonpatent laws (“European Parliamentvotes for common patent system”,report, December 12).

A clear victory for all, this shouldplease European integrationists andenemies of red tape alike. Withdespair over European unityemanating from so many fronts, itoffers some small hope to thosesickened by the present rise innationalist bickering.

I have in front of me an article onthis very topic from the January 51965 edition of the (New York)Journal of Commerce, written by myfather, European editor at the time,in which the importance of patentunification under the EEC (thefledgling EU predecessor) toEuropean integration as a whole islisted as one of the major motivatorspushing this effort along at the time.Cynics of the era might havepredicted no less than the almost 50years it ultimately took for a fullresolution, but optimists can nowtake heart that in this case evensuch a formidable delay is progressany way you look at it.Nicholas Dreyer,Seattle, WA, US

Clip the wingsof Obama’sbirds of preyFrom Mr Karl A. Ziegler.

Sir, The Ferguson cartoon thataccompanied Gideon Rachman’swell-argued Comment, “America’scovert drone war is out of control”(December 11), showing a droneperched like a trained bird of preyon Barack Obama’s wrist, ismemorable and timely.

As a UK-based Americansupporter of President Obama, I hopethat this image and Mr Rachman’swell chosen words will give thestrategists at the White House, CIA,Pentagon and US State Departmentpause for thought.Karl A. Ziegler,Chief Executive,Kinnerton Research Centre,London SW1, UK

Fresher and easierwith cosy chit­chatFrom Ms Grace Old.

Sir, I agree with Jens Reinke’sreason (Letters, December 11) forTrader Joe’s success and Fresh &Easy’s failure. But, to add to the pot,F&E has a very cold, non-hospitableatmosphere. There are too fewemployees (one or two to a store)and you have to check yourself outat a very unforgiving machineinstead of having a friendly chit-chatwith a Hawaiian shirt-clad employeeat the end of your shopping tour.

Trader Joe’s has many busyemployees willing to help with acheerful attitude. Being English, Irushed to the opening of our localFresh & Easy store and was verydisappointed: no English products, nohelp and no ready smiles fromemployees. Cosiness is the answer.Grace Old,Long Beach, CA, USFrankly, any government could do what Monti has done

From Mr Federico Salerno.Sir, As an Italian living in London,

I would like to add a couple ofcomments to Wolfgang Münchau’sout of the box contribution on the“Mario Monti bubble” (December 10).

I believe he is right when hestates that nothing major has been

accomplished during Mr Monti’stenure as prime minister. Thegovernment has indeed squandereda unique opportunity to tackle thestructural issues (labour market,pensions, health costs, immigration)that hamper economic growth. Onthe contrary, the adjustment has

been carried out mainly byincreasing taxes. Something that,frankly, any government could havedone. And which is likely to havefurther worsened the country’sgrowth potential.Federico Salerno,Buckhurst Hill, Essex, UK

ANALYSIS REVIEWLibor fallout rolls onVideo: Christine Spolar and John Plenderdiscuss the latest twists in the scandalwith Frederick Studemannwww.ft.com/analysisreview

DECEMBER 14 2012 Section:Features Time: 13/12/2012 - 19:26 User: paleita Page Name: LEADER USA, Part,Page,Edition: USA, 8, 1

FINANCIAL TIMES FRIDAY DECEMBER 14 2012 ★ 9

COMMENT

an extension rather than a threat todemocracy. But autocrats everywhereas well as democratic leaders steepedin the old politics of party andpatronage will find the loss of powerhugely destabilising.

So where is the threat in thediffusion of power? The problem isthat states will be operating in amore fragmented and unpredictableinternational landscape. As the worldbecomes more multipolar it is alsobecoming less multilateral. Therising states are jealous of nationalsovereignty. Politicians in the westhave grown reluctant to cede powerto international institutions.

The paradox is that this makes itall the harder for governments toaddress the insecurities, whethereconomic or physical, that mosttrouble their citizens. Uncontrolledmigration, economic offshoring,financial instability, climate change,unconventional weaponsproliferation, cross-border crime andterrorism – none of these areproblems within the capacity ofindividual states to resolve.

To reclaim power governments willhave to act in concert. The danger isthat they will look instead forsomeone else to blame by stokingthe fires of nationalism.

philip.stephens@ft.com

Banks need to rediscover the ancient art of cautionlooked after themselves. There wasno federal deposit insurance, thedollar was defined as a weight ofgold and no bank was too big to fail.A good banker lent against thecollateral of short-dated commercialbills, not – heaven forfend –property.

In those long-ago days, capitalistsbore the costs of the downside aswell as the fruits of the upside. “If abank failed,” wrote Jonathan R.Macey and Geoffrey P. Miller in a1992 article in the Wake Forest LawReview, “the receiver woulddetermine the extent of theinsolvency and then assessshareholders for an amount up toand including the par value of theirstock” – so-called double liability.After all, it was the shareholders’bank, not taxpayers’. And, theauthors concluded, the shareholderstended to pay: “Despite the largeamount of litigation, the overalllevel of shareholder compliance withassessment orders was relativelyhigh.”

The forerunner to today’s Citi wasconservative almost to a fault in thatbelle epoque. “He pays no interest,carries the strongest reserve of any

bank in the city and gets a large lineof deposits from equally timidpeople, who feel that their money isa little safer in this bank than itwould be in government bonds,”wrote a bemused examiner of thechief executive in 1891. As for theNew York banking business as awhole in the years from 1900 to 1913,

Charles Goodhart, the economist andformer senior official at the Bank ofEngland, calls it “successful to anextent rarely equalled in the UnitedStates”.

Next came the US Federal Reserve,the first world war, the postwarersatz gold standard, John MaynardKeynes and the Depression. With theDepression came the Federal DepositInsurance Corporation and theabolition of the double-liability laws.

Rugged individualism made way fora kind of financial collectivism.

At first, there seemed nothing notto like. Depression-era regulationreinforced the financial caution thatthe 1930s had instilled in lenders andborrowers alike. Bank failuresseemed a relic of the bad old days.Between 1944 and 1974, theyaveraged less than four per year.

But the Depression was fadingfrom memory and a new generationof bankers wondered what all thecaution was about. In 1966 a Citibanker worried that “so few loanofficers today . . . have experienced aperiod of frequent credit problems”.He did not have long to wait. Withthe inflation of the 1970s came thefad for pushing credit on what werethen styled third-world countries.Property lending became respectable,then glamorous. Citi participated ineach new burgeoning field. In 1973,Walter Wriston, its chairman,pledged to expand the bank’searnings by 15 per cent a year.People gasped. Here was a new thingunder the sun: a commercial bank asa growth stock.

And Citi did grow, especially inassets. But it did not grow in

A good banker lentagainst the collateral ofshort­dated commercialbills, not – heavenforfend – property

Central banks should aim beyond inf lation targetsIn the UK too there is a whiff of

change in the air. Since the BoE wasgranted operational independenceover monetary policy in 1998 it hasoperated under a mandate, set byparliament, to meet an inflationtarget of 2 per cent. Until now thistarget has been pursued by anideologically orthodox governor.

An imminent change at the top,however, may provide the perfectoccasion to shift the mandate in anAmerican direction. The UK needsmore inflation. It is good for thegovernment (less fiscal consolidationwould be needed to bring down thestock of debt). It is good for mostcompanies and households (for whomdebt exceeds savings and is morelikely to be nominally denominated).By reducing real debt, it would makecompanies and households morecreditworthy, making banks morelikely to lend, and at lower rates. Itshould also reduce the value ofsterling, boosting exports andreducing imports.

Given the political predicament ofthe coalition government – anoutlook of seemingly endlessausterity – a review of the BoE’smandate is a political no-brainer.

There is a variety of ways in whichthe mandate could be modified,including: expanding the inflationtarget band to say 2 to 4 per cent;introducing a Fed-style dualmandate, which includes a growth orunemployment objective alongsideinflation; or an outright nominalgross domestic product target, ineffect making growth part of theresponsibility of the central bank.

Mark Carney, the incominggovernor, will not be uncomfortablewith such discussion, as a speechthis week made clear. The Canadiancentral bank, which he currentlyleads, works to multiple objectives,including influencing “fluctuations inthe general level of production,trade, prices and employment”, aswell as promoting “the economic andfinancial welfare of Canada”. For

George Osborne, the chancellor, thetemptation to change the BoE’smandate should be overwhelming. Hecan argue that he inherited presenttargets from a different party thatgoverned in a different economic era.If he revises the mandate in aninflationary direction, the coalitionwill have a fighting chance ofwinning the next election. If theycontinue on the current path theywill probably lose. Ed Balls, theshadow chancellor and a magpie forgood ideas, would then be quick toput his own stamp on the mandateas soon as Labour returned to office.

So what is the catch? There aresome who object to so-called “fiscaldominance” – the subordination ofthe central bank to the sovereign.This would be a legitimate concern ifgovernment actually meddled withcentral bank policy to a degree orwith a regularity that destabilisedmarkets. But refinement of centralbank mandates, such as is beingproposed in Japan and is mootedhere for the UK, does not amount tosuch a degree of destabilisation.

A second objection is the EddieGeorge concern that an explicitchange in mandate would unleash

inflationary expectations which couldnot be controlled. For Britain, inparticular, this recalls the nightmareof the 1970s – collective bargaining,incomes policies and unburied dead.But that was a different time: therewas no central bank independence;monetary policy was manipulated byboth parties to manage the electoralcycle; the labour force was inflexibleand heavily unionised; and theeconomy was half-closed. Inflationcould easily take root.

A final objection comes fromcritics of the fiat currency era, whofear “fiscal dominance” will unleasha race to the bottom of competitivecurrency devaluations, ending withgold as the only investment refuge.

But this argument is a caricature.Monetary policy tools are nowsufficiently sophisticated and labourmarkets sufficiently flexible that itshould be possible to manage amoderate level of inflation (low tomid-single digit) without the genieescaping the bottle. The real problemfacing today’s central bankers is howto create much inflation at all.

The writer is chairman of hedge fundgroup Marshall Wace

Paul Marshall

James Grant

For the 21st century, big bankbad news – large financiallosses, fines for malpractice,

lay-offs – is hardly news at all. Infact, we’re surprised when thingsgo right.

Bankers deal in credit. They lendand borrow and promise to repay.But when creditors come running fortheir money, the bankers searchtheir vaults in vain. It seems thatthe money is elsewhere.

Crises of liquidity and solvency arerecurrent. But the crash of 2007-2009and its long-lingering aftermath,come with a twist. It was, andremains, a crisis not only ofleveraged finance but also ofsocialised risk-taking.

Citigroup has played its part in thecyclical dramas for 200 years. It hasbeen safe, and it has been sorry. Ithas had more lives than a cat, andits survival tells a story about theevolution, if that’s the word, ofAmerican banking.

I divide that history into two eras,ancient and modern. Between thecivil war and the Depression, banks

powers in 2030. The point is that itwill have to work harder if it wantsto get its own way.

The report invites the reader to beoptimistic or pessimistic according totaste. Surely there is something tocelebrate in the arrival of at least abillion more people in the ranks ofthe global middle class? But thenwhat about the strain this will puton finite natural resources? The vastmajority of us will live longer,healthier lives but the world isgetting old. Technology promises tomultiply our personal relationshipsand access to knowledge. It is also alethal weapon in the hands oftyrants and terrorists. Shale oil andgas will keep the lights on; climatechange threatens our security,prosperity and, perhaps, the veryfuture of the planet.

What’s certain is that the world ischanging faster than at any time inhuman history and that most of usare still reluctant to step outsidetoday’s frameworks. Keynes saw theproblem long before anyone talkedabout a digital age. “The idea of thefuture being different from thepresent”, he wrote, “is so repugnantto our conventional modes ofthought and behaviour that we, mostof us, offer a great resistance toacting on it in practice.”

For me, the fascinating story ofthe next couple of decades willcentre on the interaction of two bigpower shifts. The first is the familiarone from west to east and north tosouth. By 2030, Asia will havesurpassed the US and Europe onmost measurements of relativepower. But this is not just aboutChina and India. Mexico, Indonesia,Turkey, Vietnam, Iran and others allhave the potential to becomesignificant powers. This is the post-western world that the US will findit harder to shape in its own image.

The more striking trend, though, isthe ebbing of power away from thestate. This has been happening for

Here are three things to ponderabout tomorrow’s world. States arebecoming at once more assertive andless capable. Newly empoweredcitizens are becoming moredemanding of their political masters.Put the two together and you mayhave a recipe for resurgentnationalism and conflict.

This week the National IntelligenceCouncil, the agency that sits atopthe US intelligence community,published its quadrennial report onwhat the world might look like 20years hence. Launched at aconference hosted by theWashington-based Atlantic Council,“Global Trends 2030: AlternativeWorlds” is a must read – a treasuretrove of well-chosen facts, prescientanalysis and strategic insights.

The headlines generated by theassessment focused on its view of USpower. The Pax Americana, theperiod of American ascendancy thatbegan in 1945, was coming to an end,the NIC said, You might say sowhat? The global power shift ishardly new. But the significance, itseems, is that the US is nowadmitting it. The word inWashington was that the WhiteHouse was distinctly nervous inadvance of the report’s publication.

Headlines apart, the NIC’s analysisis a lot more subtle than the China-up, America-down narrative belovedof the gloomsters who declare we allwill soon be ruled from Beijing. Forone thing, the spooks – and justabout every other serious analyst –believe that the US will remainprimus inter pares among the great

some time. Governments everywhere,in the west and among the rest, havebeen weakened by globalisation –losing power to multinationalcorporations, footloose capital andcross-border networks. The NICidentifies a second shift – from thestate to the individual. The reportcalls this individual empowerment a“megatrend”, a development that willchange fundamentally the waysocieties are organised.

In rising states, growing prosperityand costless communicationstechnology are emancipatinghundreds of millions of people whohave hitherto been locked out ofpolitics. Women almost everywhereare securing greater access toeducation and the beginnings of avoice in politics.

We have caught a glimpse of theawakening in the uprisings in theMiddle East but it reaches wellbeyond the Arab world. Ask theChinese policy makers who foreverfret about the social and politicalexpectations of that country’sburgeoning middle class.

Most of these developments arebenign. A world in which women areempowered will surely be a gooddeal safer than one in whichinternational relationships are ruledby male machismo. In the west, thedigital revolution should be seen as

Given the outlook ofseemingly endlessausterity – a review ofcentral bank mandatesis a political ‘no­brainer’

judgment. Late in the 1980s, adeepening bear market incommercial real estate pushedhundreds of banks and thriftinstitutions to the wall; 534 failed in1989 alone. The Citibank front officecould hardly have failed to notice.Yet the new, fashion-forward Citientered 1990 with a ratio of equity toassets of less than 4 per cent. Itbarely survived the bust of 1990-91.

And it did not survive the greaterbust of 2007-09 as an independentcapitalist enterprise. It became award of the state – worse, a pet ofthe state. In her memoir “Bull by theHorns”, Sheila Bair, former FDICchairman, is properly excoriating ofCiti and the federal regulators whotreated it not like a failing bank butlike a national treasure.

When, more than 100 years ago,George Gilbert Williams, president ofthe famously conservative ChemicalBank, was asked for the secret of hissuccess, he replied: “The fear ofGod.” You can have the fear of Godor the socialisation of risk, but youcannot have both at once.

The writer is the editor ofGrant’s Interest Rate Observer

L ike generals, central bankersalways fight the last war.Today’s global policy elite is

influenced above all by the fightagainst inflation, which was thepredominant challenge of theirformative years. Eddie George, aformer Bank of England governor, issaid to have begged senior politiciansshortly before his death to neveragain loose the inflationary genie hehad spent his life bottling. Germaneconomists, meanwhile, are obsessedby the (false) idea that the rise ofHitler was a consequence ofhyperinflation unleashed by theReichsbank in the early 1920s, ratherthan the deflation of the 1930s.

But the fight against inflation hasbeen well and truly won. And inrecent days there have even beensigns – in Shinzo Abe’s flirtationwith an inflation target in Japan,and the Federal Reserve commitmentto keep interest rates near zero untilunemployment falls to 6.5 per cent –that the global policy elite has begunto see inflation as the least painfulinstrument of debt erosion.

In tomorrow’sworld, it’s thestate versusthe individual

We’ve hada glimpseof theawakeningin theMiddle Eastbut itreacheswell beyondthe Arabworld

Philip Stephens

Deficit fetishhas poisonedUS debateAmerica’s goalmust be torevive jobs andthe economybefore thebudget, writesRobert Reich

www.ft.com/thealist

The Syrian people continue toface horrendous violence andinsecurity. The conflict in Syria

has now engulfed its neighboursLebanon, Jordan, Turkey, Iraq andIsrael. The flow of al-Qaeda fightersand other radical elements intoembattled Syrian cities, coupled withIranian support for pro-governmentmilitias, risk transforming a civilwar into a regional conflict.

The recognition of the Syrianopposition by the EU and the US isan important first step but the onlyeffective way to stop the violenceand begin a peaceful process is animmediate, concerted and unifiedinternational strategy that engagesall whose interests have prolongedthe conflict.

This strategy includes three criticalsteps that have to be implementedsimultaneously with the backing offour vital actors: the US, Russia, Iranand China, as well as Turkey, Qatar,Saudi Arabia, Egypt and the EU.First, establish an effective ceasefireimmediately. Second, ensurehumanitarian aid reaches all Syrians.Third, begin negotiations with allparties.

Gaining the support of Russia and,with Moscow’s help, Iran to persuadeBashar al-Assad and his governmentto institute an immediate ceasefireand ultimately reach a compromiseis an important stabilising step.

Regional powers, such as Turkey,Qatar, Saudi Arabia and Egypt, havean important role to play, too. Theyhave to convince the opposition toestablish a lasting ceasefire andassist in the provision ofhumanitarian assistance for all

Syrians. EU powers such as France,Germany and the UK should makeavailable their good offices forhumanitarian aid and to facilitatepolitical dialogue with theopposition.

The establishment of a Syriancontact group among these keypowers – similar to the Daytonprocess that helped stopped thefighting in Yugoslavia – would aidnegotiations that could lead to aunified strategy for peace. The Assadregime must be convinced to acceptchange and multi-party negotiationsnow because the window ofopportunity is closing rapidly.

Those negotiations must includereligious leaders of all faiths. Onlyreligious leaders can ensure that thefabric that holds Syrian societytogether does not unravel completelyand soften any radical rhetoric.

Without such decisive action, Syriaand its neighbours could descendinto further bloodshed and chaos.The longer the conflict goes on, themore radical it will grow and moredifficult to find a solution.

Aleppo and its surrounding regionappear to have fallen under thecontrol of the rebels. The populationin the embattled parts of the city hasno water, food, electricity,medication, fuel, jobs or schools. It issimilarly grim in parts of Homs andDamascus. With winter approaching,the Assad regime has made life evenmore difficult by cutting internet andphone connections to the whole ofSyria.

The conflict has cost more than40,000 lives, while an equal numberof people have vanished. More than300,000 have been injured and nearly2m are internally displaced. Morethan 550,000 have found shelteroutside Syria in Lebanon, Jordan,Turkey and Iraq.

Only the more maligned radicalactors, such as al-Qaeda and othersfavouring jihad, will benefit from theever increasing violence,indiscriminate use of force andsoaring casualty rates.

The rebels are employing asuccessful new strategy that is aimedat strangling the regime byeliminating governmental control ofairports and lines of communication,and attacking important urban areas– most recently the capital. WhileQatar and France are increasingtheir support of the rebels with bothfunds and materials, the morale andfighting capability of forces loyal toMr Assad appear to be diminishing.

As the Assad regime grows evermore desperate, the chances of a warcrime being committed or chemicalweapons being used growsincreasingly likely.

This demands urgent steps by theinternational community to stop thefighting. These steps have to betaken in tandem with an internalpolitical process that is not onlyinclusive of all Syrians, but also ledby Syrians.

The writers are, respectively, adirector from Princeton universityand the Syrian Orthodox archbishopof Aleppo

WolfgangDanspeckgruberand Mar Gregorios

Syria’s agonycan endonly afterall partiesagree to talk

The Assad regime mustbe convinced to acceptchange because thewindow of opportunityis closing rapidly

DECEMBER 14 2012 Section:Features Time: 13/12/2012 - 19:26 User: paleita Page Name: COMMENT USA, Part,Page,Edition: USA, 9, 1

10 ★ FINANCIAL TIMES FRIDAY DECEMBER 14 2012

Ever since I bought myiPad, I have been fightingmy children for control of it– and I may be losing. Ofthe 40 or so apps loadedon it at the moment, morethan half are for the kids.But because the iPad is still– at least nominally – mymachine, I’d prefer the appsthey use to be – at leastnominally – educational.But apps that please bothme and the little ones canbe tricky to find.

Story apps fromchildren’s publisher NosyCrow are great for reluctantreaders because they builda lot of interactivity intothe stories. My six­year­oldloves their award­winningCinderella tale, whichinvolves helping thecharacters tidy up and getdressed for the ball with aswipe of a finger.

I was keen to try the twonew apps from Nosy Crowfor Apple devices: AnimalSnApp: Farm ($4.99, £2.99)is a collection of taleswinsomely drawn byGruffalo illustrator AxelScheffler, while Rounds:Parker Penguin, ($4.99,£2.99) shows the life cycleof the Antarctic birds.

Neither is quite as goodas Nosy Crow’s earlierfairytale­based work.The farm stories lookedmagnificent but did not holdmy children’s attention forvery long. Rounds fared alittle better but testing hadto be abandoned becauseof a fight over who got totilt the screen to slide thepenguin across the ice.

Gadget of the week

Maija PalmerPersonaltechnology

BUSINESS LIFE

Long before the holidaysare over, employees atPiggotts, the companybehind Oxford Street’sChristmas lights, say thatthey are sick ofdecorations.

“Our staff manufactureand refurbish Christmasproducts all year roundand by the time Christmascomes around, their homesare probably the leastdecorated,” says LeeHarvey, the managingdirector.

The company has, infact, manufactured theChristmas lights for theWest End shopping districtevery year since thetradition began in 1948.

For most companies, that

retail operators, puts it:“We have to create a senseof theatre. We’re trying toget customers to putmoney in the till.”

Piggotts has turned tocorporate sponsorship tohelp it through the leantimes. This year’s lights,sponsored by Marmite,feature elves fighting overa slice of toast smotheredin the yeast extract madeby Unilever while Santaturns green after one bite,illustrating the logo: youeither love it or hate it.

Dave Beasleigh, Piggotts’electrical contractmanager, says lightingdesigns have changed littlein the 34 years he has beenwith the company. At least8km of wiring has beenused in this year’s display,he says.

But unlike some of hiscolleagues, Mr Beasleighsays he still enjoys themoment the lights aretested for the first timeeach year. “I actually getquite emotional.”

The last word

After decoratingLondon for 230years, Piggotts isstill adapting,writes AlexandraStevenson

would be a venerablehistory but for Piggotts,which can trace its historyback more than 230 years,it is a blink of an eye. TheBritish company startedduring the reign of KingGeorge III, when it wasappointed to decorate thestreets of London withflags and garlands forpublic celebrations.

The royal connection hascontinued. Mr Harvey, 39,recalls his first day on thejob 10 years ago, when hewas told he had a meetingat Buckingham Palace todiscuss a marquee.

“I was scrambling to findmy tie,” he says.

This year the companyhelped dress the city inunion flags for the Queen’sdiamond jubilee. TheLondon Olympics alsohelped boost revenues atPiggotts, which decoratedRegent Street with theflags of 125 participatingnations and put up about42 miles of games-themedbunting across London’s

“lunacy” must have ledhim to take on the freneticjob. Each project brings anew set of challenges,often unique to London,such as the weather or aworking area turned intoan obstacle course byconstruction work.

But Mr Harvey adds: “Ifeel very proud of what weachieve. We transformsome of the mostrecognisable streets in theworld and when . . . peoplestop to take photographs Ialways feel privileged to bea part of that.”

Behind the bright lights,Piggotts is a business with60 full-time employees andalmost 150 seasonal staff.But the business, which isowned by The CrownGroup and operates froman 11-acre site in Essex,has come a long way sincethe two Piggott brothersran it from premises in asmall lane near LiverpoolStreet on the eastern edgeof the City.

Since 1780, the company

A company’s Christmas lights defy economic gloomhas made items rangingfrom street garlands tomilitary uniforms to evena biplane for the 1912British Military AeroplaneCompetition in Larkhill.“We supplied uniforms toboth sides of the[American] civil war,” MrHarvey says.

“It’s a part of [Piggotts’]pioneering spirit. All it didat the beginning was flagsand decorations and overthe years it has learnt toinnovate,” Mr Harvey says.

The bill for setting uplights on Oxford, Regentand Bond streets can addup to more than £1m eachyear, funded by localshops. But the rewards areoften worth it. On average,40m people pass throughstores on the three streetsduring the seven weeks inwhich the festive lights areon, accounting for almost afifth of total footfall eachyear. As Jace Tyrell,communications director atthe New West EndCompany, which represents

Alphabet appsto please parentsand children

Piggotts’ 1957 Regent StreetChristmas display Corbis

Animal SnApp:Farm★★★☆☆Rounds:Parker Penguin★★★★☆

Parents spend about $100 downloading an averageof 27.2 apps for their children each year. Many wouldprefer these to be educational, with good privacypolicies and no advertising. New apps from Nosy Crow,Oxford University Press and Jajdo offer some safeoptions for small tablet users.

Read with Biff,Chip and Kipper★★★★☆

in the US, plus one-third of the daysspent in the US last year, plus one-sixth of the days spent there the pre-vious year. If that totals 183 days ormore, you have become a US tax resi-dent even if you are legally residentsomewhere else.

The UK government is also bringingin a slew of tests that requires intri-cate record keeping.

“I have several clients who have theirPAs keep some very complex-lookingspreadsheets that are essentially track-ing their movements and how manydays they are triggering for each juris-diction,” Mr Norris says.

PwC has a proprietary platform thatit gives clients to help keep track ofemployees’ overseas movements, saysMr McClusky. “A company like [man-agement consultancy] Accenture,with many thousands of employeeswho are constantly mobile – fourmonths in Switzerland, five months inIndia and a year in New York – runsinto tax systems that are simply notdesigned for these people.”

Against this backdrop, AnupamSinghal and Nishat Mittal, two Indianexpatriates based in the US, are hop-ing to capitalise on the demand forrecords of executives’ whereabouts.Five years ago the pair, who metwhile working at General Atlantic,the asset manager, were in a similarsituation to Mr Roberston. Mr Singhalwas working in the UK but flyingback and forth to visit his wife inBoston. Mr Mittal was working inIndia while his wife stayed in NewYork City.

Mr Singhal’s accountant told him hemight have to pay 6.5 per cent of hisglobal income in tax to Massachusettsunless he could prove he was not inthe state for a total of 183 days. “Wespent a lot of time scrambling throughcalendars, travel records, boardingpasses, meeting schedules and creditcard receipts trying to put together arecord that would show where I wasfor the entire year,” he says.

Mr Mittal was jetting in and out ofIndia every third day. He discoveredhe had been in the country for a totalof 184 days in one year and was thusliable for a full year of Indian incometaxes, which were much higher thanthose he would owe in the US, wherehe is a citizen. “Just for two days [inIndia] I ended up owing a lot oftaxes,” he says. “But keeping a recordof where I am spending time – that isa massive issue for a busy executive.”

With their savings, Mr Singhal andMr Mittal set up Monaeo – from the

A taxing problem for executives

New York state alone collected$220m in taxes last year from non-residents who visited the state forwork because they failed to declareand pay state income tax under thenew residency rules.

Mr Norris says New York state has“one of the most draconian and ag-gressive jurisdictions for claimingtaxes”. Anyone in the state on busi-ness for 14 days within one year is notonly required to file a tax return buttheir company must withhold NewYork state income taxes from theemployee’s pay.

Mark Klein, a senior partner withHodgson Russ, a tax advisory firm inNew York, sees income tax auditsinvolving residency questions almostdaily. The biggest problem in suchcases is proving a negative. “If a cli-ent says, ‘I have a receipt that shows Ihad dinner in New Jersey and notNew York’, the auditors say that onlyproves you had dinner there, not thatyou spent all 24 hours there,” he says.

Tax authorities now routinely auditmultinationals’ travel and entertain-ment expense reports to see whereeach employee was during the taxyear. Such an audit recently identifieda TV network executive who visitedNew York about 20 days a year, saysMr Klein, but did not realise he owedtaxes until the state went through hiscompany’s expense reports and foundhis hotel bills.

Mr Mittal says the softwarewould be particularlyattractive to companiesthat send staff on short-

term overseas assignments and areobliged to cover the tax costs forthose employees. “If the companyknew they had to pull them out on acertain day, it could save the firm alot of money,” he says.

Some executives might balk at theircompany knowing exactly where theyare every minute of the day. “There isalmost a new type of contract bet-ween an employer and an internation-ally mobile employee that involvesthe employer interfering in parts of anemployee’s life that might not neces-sarily feel natural or welcome,” MrMcClusky says.

“As more and more workers crossstate lines and international bounda-ries, companies need to be moreaware of the problem,” Mr Horn says.“I suspect a lot of smaller companiesfigure they are sending someone over-seas for only a couple of days so itdoesn’t count. Well, they’re wrong.”

In 2009 Julian Robertson, a hedgefund pioneer, was asked by NewYork to pay an income tax bill of$27m because he had spent just

two days too long in the city.The dispute between Mr Robertson

and the city tax authorities camedown to whether he was at his LongIsland estate outside the city or at hisManhattan apartment with his wifepreparing for an overseas trip. Thiswas to determine if he had exceededthe 183 days permitted before trigger-ing city tax liabilities during 2000.

It required four days of hearingsbefore an administrative law judge forthe former chief executive of thedefunct Tiger Management Corp toestablish his whereabouts with creditcard receipts and a computer diarycompiled by his secretary and get thecity’s tax assessment thrown out.

The issues at the centre of the Rob-ertson case are attracting increasingattention as governments around theworld seek to raise tax revenue byfocusing on a new class of globallymobile executives who move fromcountry to country for short periodsof time.

Iain McCluskey, a director in theinternational mobility team at PwC, theprofessional services firm, in London,says: “It’s absolutely a problem for com-panies and it’s getting ever greater.”

One Wall Street mergers and acqui-sitions banker, who asked not to benamed, says he sometimes travelsbetween New York and London asoften as three times a week.

“Someone in that position has avery difficult set of circumstances todeal with because they have threeseparate tax jurisdictions, and they allhave different rules,” says MatthewNorris, an international expert at taxfirm Frank Hirth, who advises travel-ling executives. For example, hepoints out that New York demandstax filings from business visitors fromoutside the state who spend as littleas 14 days a year in the state.

The US federal government countsparts of visits from previous years inits residency calculation. This entailsall the days in the current year spent

In the age of globalbusiness, workers mustbeware their exposure tomultiple tax regimes,writes Charles Wallace

‘Keeping arecord ofwhere I amspendingtime –that is amassiveissue fora busyexecutive’

Tracking advice: the need for executives to keep close records of international travel led Anupam Singhal and Nishat Mittal, below, to create software to help do this Bloomberg; Pascal Perich

Latin denoting warn, advise andremind. The company offers a suite ofsoftware that includes an app that usesthe GPS in a smartphone to record theuser’s exact whereabouts almost everyminute of the day. The software canalso send an email or SMS warningusers to get out of town or face a taxbill.

The founders expect the Monaeosoftware will prove most popularamong multinationals with numbersof executives who spend a few days ata time in many different tax domi-ciles. Because the software is new,however, it has not been put throughthe rigours of an audit. JonathanHorn, a certified public accountant inNew York, says the tax authoritiesare likely to accept software proof ifthere is corroborative evidence suchas credit card receipts or hotel bills.

Pop ABC(Tuojie)★☆☆☆☆Pop ABC (Jajdo)★★★★☆I was searching iTunes forPop ABC from Jajdo, aletter­learning game thattops the charts in Sweden.But I accidentallydownloaded Pop ABC fromTuojie Technologies, abizarre bubble­poppinggame with poor graphicsand baffling instructionssuch as “press thehippocampus” spoken in astrong Chinese accent.Luckily it was free in theUK ($0.99 in the US).

The Jajdo game, whichcosts $1.99 (£1.49) wasworth another search as ithad even the two­year­old

shrieking with laughter asshe tried to match lettersto zap them off the screen.I am not convinced by thelearning content of thegame. It is supposed toget children to learn thealphabet – the game nameseach letter as it is zapped –but amid the squealing, Iam not sure my threeheard it.

All these neither collectdata nor entice yourchildren to purchase newapps – concerns raisedin an FTC report. Butthat perfect balancebetween learning and funis still elusive.

For more serious learning,Gazoob and OxfordUniversity Press launchedan app in November thatcomplements the Oxford

Value of a paper trailWhile software products help inkeeping track of your whereabouts,experts also recommend that you:

●Save hotel and restaurantreceipts If you can prove you haddinner in London on a Tuesday andThursday, tax authorities willgenerally accept you were in the cityon Wednesday.

●Use credit cards, as they providefurther proof of your location Thisincludes when you are departing inairports and want to buy something,even a small item such as chewinggum or a magazine, as it will showthe last time you were in that city.

●Keep all boarding passes frominternational flights Air ticketsalone are not considered sufficientproof.

Reading Tree set of booksused in most Britishprimary schools.

Working on all platforms,from Apple’s iOS toMicrosoft’s Windows 8 andAmazon’s Kindle, it presents48 new stories featuring thefamiliar characters Biff, Chipand Kipper. Children caneither read themselves orlisten to a narrator.

Although the interactivityis basic, my 4­year­old, whohas just started school,found it fun to press thewords to hear how theysounded. There are alsopuzzles, phonics gamesand small things to spoton each page, helpingkeep interest up. Even mysix­year­old, who thinksBiff and Chip are “babyish”,liked these. At $219.99(£149.99), however, the appis expensive.

MORE ON FT.COMFor more gadget news andtechnology reviews, go towww.ft.com/personaltech

Toshiba’s entry into the new categoryof Windows 8 hybrid laptops is theU925t Ultrabook convertible, whichcosts $1,150 (from £899 in UK,where it is sold as the U920t). The sliding mechanismis more satisfying than the numerous hybrids whosescreens and keyboards swivel, flip or snap on and off.A full­sized backlit keyboard and touchpad is revealedwhen the 12.5in tablet touchscreen is slid forward andtilted. I preferred this to Sony’s Vaio Duo 11, reviewed inNovember, whose keyboard is cramped in comparison,with the screen not pushing back as far. At 3lbs, it is atouch heavier than the Duo, but similarly fully featured.

Chris Nuttall

boroughs. Christmas-related business makes upabout 35 per cent ofturnover.

Mr Harvey, who hasworked his way up fromthe factory floor, says

DECEMBER 14 2012 Section:Features Time: 13/12/2012 - 16:23 User: hayesj Page Name: BizLife, Part,Page,Edition: USA, 10, 1

FINANCIAL TIMES FRIDAY DECEMBER 14 2012 ★ 11

ARTS

‘All Heaven beforeme, and the GreatGod Himself’:George FridericHandel (1685­1759)

Time & Life Pictures/Getty

Many ways to handle a ‘Messiah’

interpreter faces a mass of choices.Performances to be avoided are

those parading their “authenticity” indry, inflexible interpretations, as ifMessiah were nothing more than ademonstration of Baroqueperformance practice. At the otherextreme is the eccentric brigade.Nikolaus Harnoncourt takes “Unto usa Child is Born” at a deadeningtempo – a pity, as Gerald Finleysounds magnificent in the bass ariasand the Arnold Schoenberg Chorus isextremely fine. René Jacobs’ versionis typically over-dramatised, and it’sleft to the crystal-clear Choir of ClareCollege, Cambridge, to make amends,plus a solo team led by KerstinAvemo’s soprano and LawrenceZazzo’s countertenor.

The recordings conducted by TrevorPinnock, John Eliot Gardiner andMasaaki Suzuki – the latter showingthe same flexibility of tempo andstylistic assurance as in his superbrenditions of the Bach Passions –have many individual merits, notleast Arleen Auger (Pinnock) andMargaret Marshall (Gardiner) in “IKnow that my Redeemer Liveth”, andthe beautiful sound of YoshikazuMera’s male alto in “He WasDespised” (Suzuki).

My favourite historically informedset is Christopher Hogwood – the 1980CD version, not the later DVDremake. The chorus is the Choir ofChrist Church, Oxford, using mostlyboy trebles and altos, and young menfor the tenors and basses. “Unto us aChild is Born” and the “Hallelujah”chorus combine verve and splendour,and the soloists, led by Emma Kirkbyin her prime, are top-notch.

The danger is that you settle into agroove with the recording you grewup with. Messiah is a work of suchmagnitude that no single approachcan do it justice.

This is part of an occasional series onbuilding a library of classical music.For links to CD-purchasing sites, go towww.ft.com/life-arts/music

Anyone from outside the English-speaking world who visits a Londonconcert hall in the run-up toChristmas could be forgiven forthinking British music-lovers hadsuccumbed to Messiah madness.

They do things differently inGerman-speaking Europe, where the“English” Handel has never beenaccepted and Bach’s ChristmasOratorio takes precedence at Advent.When German-language choirs dotackle Messiah, it is invariably inMozart’s un-Handelian arrangement.

If English choral tradition hasturned Messiah into a hardy (not tosay hackneyed) annual, that shouldnot blind us to the work’s exceptionalqualities – as a piece of music, yes,but also as a statement of faith, anaspect that eludes manyperformances on CD as in concert.

Handel’s claim to have seen “allHeaven before me, and the Great GodHimself” during his 22-day burst ofcomposition was either a businessman-composer’s hyperbole or a manifestofor Messiah’s extraordinary spiritualaura. I’ll go with the latter. You don’tneed to be a believer to be inspiredby his setting of mainly OldTestament prophecies, but the truetest is whether the performersconvince you that they believe in it.

Listen to Heddle Nash singing“Comfort Ye”, the oratorio’s openingwords, in his 1947 recording under SirThomas Beecham. Through thecrackly sound you will hear thegreatest example of Messiah-singingon record – soul-searching anguishand consoling credo in the samebreath. This is the second and mostexpensive of Beecham’s three Messiahrecordings, and easily the best.

Given that Handel himselfperformed it in different ways, nosingle interpretation can claim thewhole truth. While this adds toMessiah’s fascination, it means that

every recording is a compromise ofone sort or the other. Older versionstend to be more faithful to the spiritthan to the letter. With modernversions, it’s the other way round. Inhis 1946 and 1959 recordings, SirMalcolm Sargent tinkers with theorchestration, and the 1946 versionomits certain numbers, but you can’tfault the conviction of the 100-strongchoruses or Sargent’s broad, majestictempi. Isobel Baillie’s “I Know thatmy Redeemer Liveth” (1946 version)has never been surpassed on record.Both sets are available at bargainprice.

A useful halfway house betweentraditional and modern styles is theyoung Colin Davis’s 1966 studioversion on Philips, which hasexcellent soloists and a professionalchorus. The sound and performancestand up remarkably well after nearlyhalf a century. Davis’s recent LSOLive version pales by comparison.

Venture into the era of periodinstruments and you face all sorts ofdifficult choices. Sopranos or boytrebles? Tenor or countertenor? TheFoundling Hospital version, aiming torecreate the sort of performanceHandel supervised there in 1754(Paul McCreesh, fast but notinexpressive), or a “standard” 1741-43text, whatever that means? Handelmade changes based on the singersand players available, and every

“The Hobbit: An UnexpectedJourney”, announces the poster.Unexpected? By whom? Among thegreat certainties of earthly existence,death and taxes were long agoovertaken by the ineluctable box-office march and stamina of PeterJackson’s Tolkien film saga. Haltits progress? Curtail its hobbit-forming momentum? You could aseasily flag down a juggernaut witha paper hankie.

Professor Tolkien’s slim preludialvolume to The Lord of the Rings nowstands release-ready as an equal-length trilogy of movies slated (unlesscritically or blogospherically slated)to march on into earths andelvedoms infinite. Don’t expect me tocast the first slate. The Hobbit maybe long and certifiably whimsical. Butit is dashingly spectacular and, in itsheadlong, obsessive-compulsive way –you have to like looking at folkloricweirdos in beards, hats and bulbousnoses – a sort of masterwork.

Don’t be deterred by the slow startor the already controversial fast-frame screen process. (Yes, it lookstelevisual till you adapt to its grain-free, scrim-free immediacy: a loss indistancing veneer that is a gain in“you are there”.) Somewhere in theShire, Bilbo Baggins (MartinFreeman) leaps from the flashbackingimagination of his older self (IanHolm) to begin a trek throughMiddle-earth with an army ofdwarves wanting to reclaim a dragon-seized kingdom. Played by Freemanwith a lightness of comic touch forwhich Jackson’s sometimes unwieldyfranchise should weep with gratitude,this Bilbo makes a good contrastydouble act with Ian McKellen’sGandalf. Supposedly younger, thelatter is as plummy and quavering asever. Clearly youth cannot stale norflashbacks wither that pop-eyed,purse-mouthed yet vocally empurpled,theatrical tremolo.

A juggernautin Middle­earth

Comic touch:Martin Freemanin ‘The Hobbit:An UnexpectedJourney’; below,photographerJames Balog‘Chasing Ice’ inGreenland

For a while little happens exceptwalkies and fighties. The landscapesare lovely; the music soars; thedialogue is built around exclamatoryone-worders cuing the next battle.“Orcs!” “Elves!” “Trolls!” An all-starinterlude in Rivendell, with CateBlanchett, Christopher Lee and HugoWeaving, threatens to freeze themovie into a permanent pre-Raphaelite stasis. Then comes thefirst true pièce de résistance and allresistance ends.

Gollum and Bilbo meet in a caveand for half an hour the riddlingcut-and-thrust of their dialogue isscintillating. Voiced and motion-capture-performed again by AndySerkis, this film’s Gollum is bettereven than in TLOTR. His eyes arehuge and spooky pools; his nakedbody scrambles arachno-humanly; hishusking, wheedling baby talk(“precious”, “hobbitses”) is at timesscary, at others funny.

The film rolls away like departingthunder with another massed battle,the best. The final sequence is aninspired little montage, with aWagnerian flick in its scaly tail,setting up Hobbit 2. I can’t wait. AndI’m the one who didn’t even want togo into Hobbit 1.

Wonderful are the reality/representation symmetries ofcinemagoing. During performances ofChasing Ice, a debut documentary byJeff Orlowski, I envision filmgoerswith ice lollies melting into their lapsogling continents with icecapsmelting into a lapping ocean. Globalwarming now visits all parts ofTheatre Earth, not least the northerntundras filmed with an AbstractExpressionist’s feral lyricism byOrlowski, as he moves in the wake ofcrusading photographer-climatologistJames Balog. The ice-forms mouldedby nature, both moving and still,come in every shape and every hue –blue, white, turquoise, aquamarine –as they perform their cyclicalpassions of decay and renewal.

Cyclical? Well, they used to be.Now they might be terminal. In oneeye-boggling moment, whichhappened as the crew passed by, anentire vast ice shelf parts companyfrom a frozen promontory, crackingoff slowly, balletically, then turningover in the water like a whale.Balog’s “Extreme Ice Survey” –

a plan to plant time-lapse camerasacross large stretches of the westernsub-Arctic – is, like the film, a projectof heroic, Herzogian endeavour. Mad,you might say. But probably notas mad as what the rest of us aredoing about climate change: namelyalmost nothing.

Code Name: Geronimo presses the“Go” button on film versions of thekilling of Osama bin Laden. Comingsoon: Kathryn Hurt Locker Bigelow’srendering. This glorified TV docu-thriller – cheap, headlong, one-pace –is a star-free stir-fry of the main events.From the plot cooked up in CIA HQ,Virginia, to the bubbling dish ofslaughter served in Abbottabad, thefilm like the operation is efficient, well-co-ordinated, dead-eyed. Stars wouldhave made it more emotionallyengaging. And narrative variety andrubato, instead of “wham, bang, thank

you, Uncle Sam,” is surely what we’llget from Bigelow. Then again,Bigelow may be pushed to equal thisfilm’s gritty immediacy: there aregains as well as losses in cheapness.

The two-year-old murder thrillerLove Crime (Crime d’Amour) is theweek’s second dummy run for an up-budget Hollywoodisation. Brian DePalma’s forthcoming Passion re-enacts, with more style if little moreconsequence, the daffy ingenuities ofAlain Corneau’s plot, in whichbusiness boss Kristin Scott Thomas(doing French) is schemed againstby assistant Ludivine Sagnier. AllAbout Eve gone Gallic? Pretty much;though as in last week’s Tu serasmon fils and last century’s Tous lesmatins du monde (1992), Corneau’sbest film, it is really all about Yves:cinematographer Yves Angelo, whocan take manky or modest scriptsand make them look million-dollar.

Even Angelo couldn’t have savedSmashed. When they pondered theirtitle, it must have been a toughchoice for writer-director JamesPonsoldt and co-writer Susan Burke(basing the script on her ownexperiences as a former alcoholic)between Smashed and Days ofWhine and Neuroses. Wheedling andhectoring by turn, ham-dram to thehilt, full of small ideas and BigActing, the film trails talentlesslyin the wake of Days of Wineand Roses. Blake Edwards’s1962 movie made sense anddrama out of a drink-soddenrelationship. Smashed makessound and fury and all thatthose usually signify.

ARTSONLINEFor more reviewsand features, go towww.ft.com/arts

They used to be on a label called FatPossum; now they’re cashing fat paycheques. The Black Keys’ rise frombasement indie origins to arena-filling,Grammy-winning eminence is pinch-yourself, how-did-that-just-happenstuff. “London, are you still with us?”asked Dan Auerbach (vocals/guitars)so often of the city’s enormodomethat he started to sound paranoid. Wewere, but it remained hard to believethat the Ohio-formed blues-rock duohas progressed this far.

Credit goes to Brian Burton (akaproducer Danger Mouse) for coaxingAuerbach and his lanky, bespectacleddrummer, Patrick Carney, towards aradio-friendliness they once thoughtbeyond them. The appetite for rawrhythmic energy, however, is entirelythe pair’s own. Carney pounded awaylike a farm hand’s hormones at avillage dance; Auerbach whipped upscrambled solos from the molasses-thick churn of his riffs. Their musicis a better class of comfort food,coarse but lovingly assembled: assatisfying as a gourmet burger.

At several points, it felt as if rockhad stopped evolving in 1973, and all“punk” meant was a certain back-to-basics briskness. Auerbach andCarney were aided by a keyboardistand an extra guitarist. “Let’s try tofill up this big old room,” saidAuerbach as the auxiliaries sloped offfor a spell. Recalling the intimacy ofseeing them in smaller venues, thiswas the best part of the night.Staggering and surging over fuzz-strewn debris, the stripped-downmusic had no problem operating atscale; it was the spectacle that lackedsomething. Comparisons are routinelymade with The White Stripes, but it’strue: The Black Keys’ diligence palesbeside Jack White’s showmanship.

Perhaps their pacing needs somethought, too. Hammond organ addeda siren sway to “Ten Cent Pistol”,but was occluded on “StrangeTimes”. Not that it mattered as theferocious wiggle of “Lonely Boy”closed the set.

For the encore, two glitterballssparkled during the agitatedpledge of “Everlasting Light”,as Auerbach sang falsetto. “IGot Mine” then clatteredand splintered through itsepic chug – irresistible inany era. The key to TheBlack Keys? Analoguesimplicity in a digital age.

www.theblackkeys.com

POPThe Black KeysO2 Arena, London★★★☆☆

Richard Clayton

FILMNigel Andrews

The Hobbit: An UnexpectedJourney ★★★★☆Peter Jackson

Chasing Ice ★★★★☆Jeff Orlowski

Code Name: Geronimo★★★☆☆John Stockwell

Love Crime ★★☆☆☆

Alain Corneau

Smashed ★☆☆☆☆James Ponsoldt

Top­notch:Emma Kirkby

Anne Purkiss/Lebrecht

Andrew Clark rounds upthe finest recordings of thisseasonal British stalwart

All the best . . .Handel’s ‘Messiah’

DECEMBER 14 2012 Section:Features Time: 13/12/2012 - 17:37 User: cheald Page Name: ART USA, Part,Page,Edition: EUR, 11, 1

12 ★

LEX ON THE WEBFor Lex notes on today’s breaking storiesgo to www.ft.com/lexFor email, go to www.ft.com/nbe

CROSSWORDNo. 14,187 Set by HAMILTON

JOTTER PAD

ACROSS 9 One plays mind-reader – at

home, with a lot of swagger in the first place (15)

10 Co-ordinate what 12 is for those listening (5)

11 That’s why he threw it badly (9)12 Springboks and Wallabies

withdraw eight players to a line on the pitch (6-3)

14 Medal for conflict in modern times (5)

16 Where one finds only first-rate politicians? (6,9)

19 Beautiful girl has latterly been my dream pin-up, Ruth! (5)

21 Try Morse (9)23 Site foreman wants 25% taken

off modest rise (9)25 Enthusiasm that maestros have

(5)26 Tight-lipped and confused,

Ivan’s mum cut no ice after son left (15)

DOWN 1 One region is bound by

injunction supported by two others (10)

2 Aim to disrupt leadership that held out (6)

3 Distraught fellow with enteric disorder (8)

4 Have the guts to reject obscenity (4)

5 Nu original? (10) 6 Gunners arrived first with

shooter (6) 7 On the lookout when living at

sixes and sevens (8) 8 Inscribe something a bit far-

fetched (4)13 Does he entrance you whatever

the cost? (6,4)15 Act to keep support for gym

outside is confirmed (4-6)17 Spooner’s lady of good fortune

is bankrupt! (4,4)18 One’s inclined to think 24 hours

will contain the god of war (1,4,3)

20 Maiden hurries round to exclusive ladies’ rooms (6)

22 In Nancy, where dope is better (6)

23 Ill-treat even Emmanuel (4)24 Bear to lose bishop’s relic (4)

SOLUTION 14,186

Egyptian turmoilVideo: Raza Agha ofVTB Capital considersthe risk to marketsfrom an extendedperiod of politicaluncertainty in Egypt

www.ft.com/authersnote

BlackBerry makerfights backBlog: John Gapper seessigns of life at ResearchIn Motion as it attemptsto re­establish itself as aserious competitor inthe smartphone world

www.ft.com/businessblog

Most read

1

2

3

4

5

Fed links rates to US unemployment

Google releases map app for iPhone

Police raid Deutsche HQ in tax probe

Eurozone agrees common banksupervisor

Berkshire spends $1.2bn in sharebuyback

TODAY ON FT.COM

THE LEX COLUMNFriday December 14 2012

No wires, not clear

Sources: Thomson Reuters Datastream; Bernstein Research

Share prices and index(rebased)

US wireless serviceRevenue($bn)

Ebitda margin, trailing12 months (%)

Dec2010

2011 20120

20

40

60

80

100

120

140Sprint

Clearwire

S&P 500Telecom Services

2008 09 10 11 120

10

20

30

40

50

34.0

34.5

35.0

35.5

36.0

36.5

37.0

Down to the wireAsking what wireless spectrum isworth is like asking what landis worth. It depends on any numberof factors. Where is it? How good isthe soil? Who are the neighbours?So it isn’t easy to evaluate Sprint’soffer for the Clearwire shares it doesnot already own. The $2.90-per-shareoffer implies a value of about 20cents for each MHz-POP (a measureof spectrum coverage) of Clearwire’sspectrum, once the company’s debtand the value of its spectrumleasing agreements are backed out.

Mount Kellett Capital, which ownsmore than 7 per cent of Clearwire’sshares, thinks the spectrum is worth38 cents/MHz-POP, implying thateach Clearwire share is worth $8.50.It argues that this is the value paidby AT&T for NextWave this summerin order to get spectrum of a similarquality.

The intrinsic value of the spectrumis not the only factor, however.There is a serious power imbalancebetween Sprint and minorityshareholders such as Mount Kellett.Sprint already owns half ofClearwire, and needs only 75 percent of the shares to consent to themerger, according to Clearwire’sequity holders agreement. Comcast,Time Warner Cable and Intel

financed Clearwire in the hope offostering wimax, an alternativewireless technology. Those hopescame to nothing, and the threecompanies now own nearly 16 percent of the shares – small potatoesfor them. Will they fight alongsideMount Kellett? Clearwire is alsoburning cash ($270m in the firstnine months of this year) so there ispressure to get a deal done.

Investors in other US wirelesscompanies should watch closely.

Should Sprint (and its soon to bemajority owner, SoftBank) getcontrol of Clearwire and use it, asexpected, to offer wireless dataproducts with low, all-you-can-eatpricing, the competitiverepercussions could be significantin an industry where margins aretightening and carriers are trying toraise data prices. Clearwire’sminority shareholders might not bethe only ones hurt by Softbank’sambition.

Banking unionThey love their overnight bargainingsessions in Brussels. The latestepisode has resulted in the first stepon the road to a banking union, withthe European Central Bank to takeover the regulation of about 200banks, and national regulators toretain responsibility for the other5,800 or so. The deal is not done yet.The European parliament still has togive its approval, and even after thatit might take until 2014 to get thesystem working. That could be toolate for some Spanish lenders, forwhich the system is a precursor todirect access to Europe’s €500bnbank rescue fund.

Nevertheless, it is a good start. Forthe banks, the agreement offers thehope that European regulatoryuncertainty may, finally, be on theway to some sort of conclusion.Common rules and oversight wouldease the administrative burden, andcould stimulate a recovery in cross-border lending.

But the agreed system is far fromperfect. It is possible, for example,that a bank could find itself withsome subsidiaries that are inside theEU, the eurozone and the bankingunion; some that are inside the EUand the banking union but not partof the eurozone; and some that areinside the EU but not part of thebanking union or the eurozone.

And this is just the relativelystraightforward part of the bankingunion. Two more contentious parts –resolution of failing banks and acommon deposit guarantee scheme –are still on the drawing board. Bothcould end up being expensive for thebanks. Analysts at Barclays estimatethat contributions to a resolutionfund could cost the industry €40bnduring the next decade. Proposals onharmonised national depositguarantee schemes, meanwhile, couldcost another €40bn, and that isbefore a pan-European scheme haseven been discussed. For banks, itseems, the longer the politicians talk,the more the costs rise.

RenaultNeeds must. Renault’s coffers swelledby €1.5bn yesterday as the Frenchcarmaker placed out its remainingholding – 6.5 per cent of the equityand 17.2 per cent of the voting rights– in Volvo. Disposal of this stake,acquired when Renault’s truckbusiness was sold to the Swedishcompany in 2001 and reduced in 2010,looks timely. It capitalises on a

30 per cent rise in Volvo’s shares insix months. And it shores upRenault’s finances at a time whencompetition in Europe is brutal.

Unlike some of its European peers,Renault does not have a balancesheet that is in perilous territory.True, net debt in its automotiveoperations jumped from €300m to€820m in the first six months of 2012.But this was still a lowly 3 per centof shareholders’ funds. Nevertheless,light vehicle sales in western Europeare likely to fall 8-9 per cent thisyear, and discounting by competitorsis rife, with Volkswagen using itsfinancial muscle to build marketshare. By the third quarter of 2012,Renault’s slice of the Europeanmarket (including Dacia) had fallenalmost 1 percentage point year onyear, to 8.6 per cent. In its coreFrench market, it had lost 2.4percentage points, to 24.5 per cent.

So the test will be to deploy thesefunds to bolster competitiveness longterm, rather than burn through themoney short term. Renault does havesome flexibility: thanks to theprofitable Dacia business, it shouldbe close to break-even in Europe thisyear, and there is the big benefit of

its equity-accounted share ofNissan’s profits. A good flow ofproduct launches is also scheduledfor coming quarters. Lessencouraging is Renault’s politicallydriven desire to avoid plant closuresas it tries to cut labour costs. Theshares, up 2 per cent to €40yesterday, trade at just six timesconsensus 2012 earnings. In thecontext of the European auto sector,that looks almost appealing.

BG GroupThere are two reasons to like ChrisFinlayson’s appointment as chiefexecutive of BG Group, to succeedSir Frank Chapman. One is that hewas not the obvious candidate. He isless well known than his twointernal rivals for the job – financedirector Fabio Barbosa andoperations boss Martin Houston.

As an insider/outsider, though, hehas been at BG long enough (twoyears) to know it well and not toolong to be blind to what needsfixing. And, second, he will start onJanuary 1, six months ahead ofschedule. That avoids a prolongedand invariably disruptive succession.

BG is still smarting from its profitand production warnings at the endof October, which sent its sharestumbling 20 per cent. The scalingback of its production outlook for2013 repeated a pattern of under-delivery on production targets thathas plagued the group for a coupleof years, and may not be over yet.Mr Finlayson’s first task will be toassess whether its 2015 productiontarget of 1m barrels of oil equivalenta day will also need to be reviseddownwards – BG currently produces660,000 b/d. Some analysts think adownward revision is inevitable.

Indeed, Mr Finlayson needs to giveBG’s entire strategy – in essence ago-it-alone development policy for itshuge assets off the coast of Braziland in Australian gas – the once-over to see whether it is sustainablein the long term. Sir Frank’sstrategy was the foundation onwhich BG’s premium stock marketrating – often double that of its peers– was built. But the premium isshrinking: BG shares trade on a 2013earnings multiple of 12, against eightfor Shell and nine for Eni.

Mr Finlayson is enough of aninsider to know that BG’s production

ADM/GrainCorpEver felt like someone you’re datingis messing you around? ArcherDaniels Midland’s 19.9 per cent stakein GrainCorp and its takeover offerwould seem a solid statement ofintent towards the Australian grainhandler. On the other hand, thesmall increase it made last week toits original offer made it look lessthan fully committed.

GrainCorp is playing hard to get.Yesterday the company rejectedADM’s A$12.20, or A$2.8bn, bid,which was a 4 per cent improvementon its original offer. The shares havetraded up to at least A$12.30 sincethe revised bid was made. Whatnext? ADM could of course pay up.Its current price values the companyat about 8.5 times earnings beforeinterest, tax, depreciation andamortisation. An A$13 offer wouldvalue GrainCorp at 9.5 times itsebitda over the cycle, smoothing outlast year’s bumper harvest, accordingto Macquarie. That is roughly in linewith prices paid in similar deals.

ADM risks a credit downgrade,depending on how the deal isfinanced. But the rating agencies’warnings come with caveats, andADM has plans to raise some cashthrough divestments. Or it couldplay the long game. It has a recordof long-term minority investments,although investors might like to askwhat its A$500m outlay so far isgetting them. But its one-fifth stakeand its low offer do not preclude arival bidder. The longer it takes forone to emerge, however, the lesslikely one becomes since Australia’s“creep” rules allow ADM to raise itsholding by 3 per cent every sixmonths without triggering a full bid.

ADM would profit itself if a higherbidder emerges but it does seem towant a deal, if not one at any price.Discipline is good, but it has spaceto raise its price if it really wantsthe business. Sometimes you’ve gotto ask whether you’d like your dateseeing others. If you don’t, eithercommit properly or walk away.

snafus reinforce concerns aboutwhether it has the heft to managethe risks of developing its assets. Heneeds to be enough of an outsider toaddress it.

DECEMBER 14 2012 Section:FrontBack Time: 13/12/2012 - 19:31 User: swordsd Page Name: 1BACK USA, Part,Page,Edition: EUR, 12, 1

★ 13

Companies and sectors in this issue

CompaniesAT&T............................................12Accenture....................................10Admiral Group...........................26Aer Lingus...................................18Alexander McQueen..................18Alitalia .......................................... 14Amazon....................................... 10Ansaldo Energia.........................14Apple.................................10,18,26Archer Daniels Midland......12,24AstraZeneca...............................26BAE...............................................14BBVA............................................14BG Group...............................12,16BP.................................................16Banco Popular ........................... 14Banco Sabadell..........................14Banco Santander.......................14Bank of America ....................... 13BofA Merrill Lynch....................16Bank of Korea...........................25Barclays....................................1,25Best Buy.....................................26Boeing..........................................14Bottega Veneta..........................18Boucheron...................................18Bouygues.....................................18

Brioni............................................18Bunge..........................................24CNBC.............................................2Cabot Oil & Gas Corp.............26Cairn Energy..............................26Caixabank....................................14CapitalOne...................................15Cargill ..........................................24Cassa Depositi e Prestiti.........14Caterpillar...................................26Centamin....................................26Citigroup................................1,9,13Clearwire.................................12,15Comcast......................................12Crédit Agricole...........................14Crown Group..............................10Dalian Wanda Group................18Danone.........................................13Deere & Co................................24Deutsche Bank................14,15,26Direct Line..................................26EADS............................................14eBay ............................................. 15Eni.................................................12Facebook..................................1,26Finmeccanica..............................14Fondo Strategico Italiano........14GLG Partners ............................. 13

Gemalto ......................................26General Atlantic.........................10General Electric ......................... 16Glencore.................................16,24Goldman Sachs...............13,16,25Google....................................18,26GrainCorp..............................12,24Gucci............................................18Honda .......................................... 14ING...............................................25Imagination Technologies.......26Intel...............................................12JPMorgan Chase.....................1,13John Wood Group....................26Julius Baer..................................16Kabbage.......................................15Kenmare Resources.................26LVMH...........................................18Legg Mason................................14LendUp ........................................ 15Lockheed Martin........................14Louis Dreyfus Commodities...24Man Group............................13,26Marubeni.....................................24MetLife.........................................16Meta Alpha................................. 15Microsoft.....................................10Mitsubishi UFJ Financial..........16

Moet Hennessey........................18Molycorp......................................16Morgan Stanley..........................13Mount Kellett Capital ............... 12Nabors Industries.....................26National Express.......................26Nissan..........................................12Noble Group..............................24PPR...............................................18Permal..........................................14Phillips 66...................................26Progressive Insurance..............15Puma............................................18PwC..............................................10Qatar National Bank................26RP Martin......................................1Renault...................................12,26Rosneft ........................................ 16Royal Bank of Scotland.............1Royal Dutch Shell ..................... 16Ryanair.........................................18Samsung Electronics ...............25Shell..............................................12Siemens .....................................14Société Générale..................14,26SoftBank......................................12Sony.............................................10Sprint.......................................12,15Standard Chartered..................16

Supergroup................................26TNK­BP........................................16Time Warner Cable...................12Toshiba........................................10Total.............................................16Toyota..........................................14Tretorn.........................................18Trian Fund Management.........13Tullow Oil....................................26UBS...........................................1,26US Federal Reserve..................13Vale...............................................16Volcom.........................................18Volkswagen.................................12Volvo.......................................12,26Walmart ......................................26Yves Saint Laurent ................... 18

SectorsAerospace...................................14Automobiles................................14Banks...............................1,13,14,16Food Producers.........................13Gen Financial.........................13,14Life Assurance...........................16Oil & Gas .................................... 16Personal Goods......................... 18Technology HW & Equ............ 18

FINANCIAL TIMES

© THE FINANCIAL TIMES LIMITED 2012 Week 50

News Briefing

Yen

Source: Thomson Reuters Datastream

Against the dollar (¥ per $)

Nov 13 201279.44 Dec 13 2012

83.61

84

82

80

78

Yen initially softens againstUS dollar, Page 26

Reliance talksAmbani group eyes tie­upwith Chinese propertydeveloper Wanda. Page 18

BofA quits JapanUS bank to dispose ofJapanese private bankingjoint venture. Page 16

Deutsche Bank warningFourth­quarter profits tobe hit by string of one­offcharges. Page 14

MetLife gloomUS life assurer says lowinterest rates could dentprofits next year. Page 16

Google map app backiPhone users get new appfrom software groupGoogle. Page 18

Molycorp drive for cashGroup struggles with fallingrare earths prices andcapital spending. Page 16

Door to innovationFinancial data industry ismore used to disruptionfrom crunching techniquesthan most. Page 15

Canada ejectionFunding for purchase of65 jetfighters halted forjoint US programme led byLockheed Martin. Page 14

Inside BusinessMeddling does Italianindustry more harm thangood. Page 14

Cereal buying spreeChina’s grain importstriple and talk of self­sufficiency fades. Page 24

Forex trading changeCentral banks, interestrates and low volatilitysqueeze profits. Page 25

Losing sessionUS stocks lose momentumafter Fed eyes extendingmonetary policy. Page 26

InsightThe ever­expanding digitalthreat to Fed’s joblesstarget. Page 24

Markets & Investing

Companies

Friday December 14 2012

Seize the moment François­Henri Pinault looks to emerging markets Page 18

Signs that investors havethrown off the cloak of cautionabound. Yesterday Portuguese10-year bond yields droppedclose to 7 per cent, the level atwhich markets concluded inFebruary last year that Lisbonhad to seek help. A bailoutfollowed in three months, andyields later hit 16 per cent.

Second, the parent ofInteractive Data Corp startedselling $350m of bonds whereinterest can be rolled up usinga payment-in-kind toggle, thetool of choice for junk bondissuers in the credit bubble.Standard & Poor’s LCD saysthe total of PIK-toggle bondsthis year is now almost $6bn,83 per cent more than theprevious three years combined– and three-quarters of it wasto fund dividend payments.

Investor fear may bereceding, but it is not comingdown evenly. HSBC’s risk-on/risk-off correlation index,measuring how far shares,bonds, commodities andcurrencies move in line, hasdropped more than a tenth inthe past few months. But whilethe Australian dollar, Swissfranc and Norwegian krone areless correlated, equity indicesand the larger haven bondyields are still moving tightlytogether (yesterday was anexception, with shares slightlydown and safe bond yields up).

Drill down and there is betternews. While equity markets asa whole are moving together,the underlying stocks are muchless correlated than they were.This makes life easier for stockpickers by putting more weighton stock or sector-specificfactors they might hope toprofit from. It also increasesthe value of diversifying aportfolio, an easy win.

In the past lower correlationalso helped markets byallowing investment banks –ruled by the whimsical valueat risk (VAR) measure – totake bigger positions. Lowercorrelation means lower VAR,but nowadays that matters lessbecause bank trading desks areso much smaller.

Central banks have pouredmoney on the troubled marketsand are having an effect.Investors have to hope it lasts.

www.ft.com/shortview

The Short ViewJames MackintoshFed begins

stress testson bankliquidity

By Shahien Nasiripourin Washington

The US Federal Reserve is car-rying out its first ever system-wide stress test of bank liquid-ity in a move that could forcebanks to change their fundingsources.

Known internally as “C-Lar” –the liquidity version of the Fed’sannual “comprehensive capitalanalysis and review” – theexamination only beganrecently. According to peoplefamiliar with the matter, it cov-ers at least the 19 banks subjectto the capital tests as well assome of the largest foreignbanks with US operations.

The new exercise is a signthat the Fed is stepping up itsscrutiny of liquidity – one of thebiggest issues revealed by the2008 financial crisis – and test-ing not just access to cash atindividual banks but how theywould fare under system-widefinancial stress.

The tests are intended toguide bank supervisors and theresults will not be made public.There is no pass-or-fail levelthat banks must reach, but if abank’s liquidity is called intoquestion, Fed examiners coulduse the results to push them toadjust their funding or increasetheir stock of easy-to-sell assets.

For example, a bank relianton short-term funding could bepressured to issue more long-term debt if bank supervisorsjudge that a lender would not besufficiently liquid in times ofstress. Longer-dated debt typi-cally is more expensive forbanks and would raise theirfunding costs, hurting earnings.

Banks being examined include

JPMorgan Chase, GoldmanSachs, Citigroup, MorganStanley and Bank of America.Some senior bank executiveswere unaware the test wasbeing conducted.

The regulator is looking atwhether the banks have suffi-ciently liquid balance sheetsand proper risk managementprocedures in case funding driesup, for example in a marketfreeze or depositor run. Thetechniques are similar to thecapital stress tests, though theresults will not dictate stockrepurchases or dividends.

Dan Tarullo, the Fed governoroverseeing financial regulationand supervision of the largestfinancial groups, is heavilyinvolved in the process. The Feddeclined to comment.

Some regulatory and Obamaadministration officials saidthey view the test as anotherimprovement to the Fed’s super-vision of the largest and mostcomplex banks in the US.

The test follows a June meet-ing at the Federal Reserve Bankof New York in which outsideadvisers told Bill Dudley, NewYork Fed president, about theimportance of regulators “stresstesting banks’ liquidity andaccess to funding duringadverse periods”.

The advisers “noted that bankaccess to funding can deterio-rate rapidly, even for well-capi-talised institutions, and thatuncertainty and feedback loopsmake it difficult to model liquid-ity risk and liquidity stressevents”, according to minutes ofthe meeting.

Some members of the advisorypanel, which includes executivesfrom JPMorgan, Goldman andUBS, suggested that regulatorslink capital levels to the relativeliquidity of balance sheets – forexample, they should consider“requiring firms with lower liq-uid assets or greater fundingrisks to hold more capital”.

Lenders who ‘fail’ facerethink on fundingResults of exercise willnot be made public

Pillow talk Banker jailed for insider trading

Thomas Ammann, an investment banker who passed sensitive information to two lovers about atakeover deal, has been jailed for two years and eight months Report, Page 14 Nick Razzell

Danone serves up €200mcost cuts to ‘regain its edge’By Scheherazade Daneshkhuin Paris

Danone, the French food group,is to cut costs in Europe by€200m over two years to “regainits competitive edge”, butdenied that the measure wasrelated to the recent call byactivist investor Nelson Peltz toboost performance.

Mr Peltz’s Trian Fund Man-agement took a 1 per cent stakein Danone last month, sayingthe company was undervaluedand calling for “a leaner coststructure” to boost profitability.

Danone said its cost reductionplan had been in the worksbefore Mr Peltz’s interventionand would not comment onwhether it had met him orplanned to do so.

“It’s not the kind of decisionyou take in one month – there isno link between Nelson Peltzand this announcement,” said

the company, which ownsActivia yoghurt, Evian waterand Blédina baby food.

It said it would talk to tradeunions in March over the plan,which was “to address a lastingdownturn in the European econ-omy and consumer trends thathave led to a significant declinein its sales in the region”.

Danone is dependent onEurope for 42 per cent of itssales, but a “swift deterioration”in consumption in southernEurope – particularly cash-strapped Spain – triggered aprofits warning in June.

Dairy sales in Spain and Italydropped more than 10 per centin the three months to the endof September year-on-year. Salesin France and the UK arebroadly flat in the year to date,but have fallen in Germany.

Danone said it would cut costsin administration and “addressmanagement structures and

support functions”. It did notmention job losses, but saidthere would be “voluntarymeasures and internal mobilitywill be the priority”.

Martin Dolan, analyst atEspirito Santo, said: “It’s a goodstart and a response to thesharp structural drop in dairysales in Spain this year andexpected decline again nextyear.

“But more will probably beneeded, particularly withregards to plant rationalisation,given the new reduced volumelevels and the lower productiv-ity starting point.”

He estimated the €200m cuts,once realised, would reduceDanone’s selling, general andadministrative expenses from35.9 per cent of sales to 34.8 percent, but that the group wouldstill have the highest costs, onthis measure, compared with itspeers.

Man Group faces writedowns ofup to $1bn over GLG acquisitionBy Sam Jones in London

Man Group is weighing signifi-cant writedowns next year relat-ing to its 2010 acquisition ofGLG Partners, a move that willraise eyebrows after Monday’sannouncement that former GLGboss Emmanuel Roman is to bethe new chief executive.

People at Man said it waslikely further impairmentswould have to be taken inFebruary, when it announces itsfull-year results, after a difficult12 months of lacklustre perform-ance and investor outflows.

Man, the world’s second larg-est hedge fund manager byassets, could discount goodwillby “between $500m and $1bn”,according to Peter Lenardos,

analyst at RBC. Such a movewould reflect the failure of theGLG deal to produce the bene-fits hoped for.

However, Man said “categori-cally no decision on this hadbeen made”. It added that itreviewed its goodwill valuationsas a matter of course every sixmonths.

A goodwill writedown wouldbe a technical accounting mat-ter and would not affect Man’sday-to-day performance.

A technical move to restruc-ture the company in Novemberinvolving the creation of a newlisted holding company has nev-ertheless paved the way for thefurther writedowns, a person atthe company said. The changehas bolstered Man’s “distributa-

ble reserves”, out of which agoodwill charge could be com-fortably taken, to $2bn.

Man holds more than $2.2bnin goodwill on its books, againsta market capitalisation of$2.38bn.

Just over $1.5bn of goodwill isheld in relation to GLG, whichit bought for $1.6bn.

Any writedown would hingein part on performance for thecompany in the final quarter ofthe year, which has not beendisclosed, and also on expecta-tions of performance in 2013.

Man took a $91m writedownon the deal in June. Assump-tions then pointed to growth inassets under management andstrong performance, neither ofwhich have materialised.

DECEMBER 14 2012 Section:2Front Time: 13/12/2012 - 20:24 User: pryorc Page Name: 2FRONT EUR, Part,Page,Edition: EUR, 13, 1

14 ★ FINANCIAL TIMES FRIDAY DECEMBER 14 2012

COMPANIES

By James Wilsonin Frankfurt

Deutsche Bank said fourth-quarter profits would be hitby a string of one-offcharges as it tried to draw aline under some poor pastdecisions by hivingunwanted assets into a non-core operations unit.

Germany’s flagship bank,reeling from a series oflegal cases including thearrest of five employees thisweek in connection with atax fraud inquiry, main-tained that allegationsrevealed this month by the

Financial Times – ofwhistleblowers’ concernsthat the bank hid paperlosses in the way itaccounted for some complexderivatives trades – wereunfounded.

“External auditors wereaware of, and comfortablewith, the bank’s treatmentof these issues,” the banktold investors.

Deutsche said yesterdaythat it had put €122bn ofassets in a non-core unit,hoping to get out of riskyand unwanted assetsquickly. “This is not a badbank but . . . comprises busi-nesses that are no longercore to the bank’s strategy,”said Stefan Krause, chieffinancial officer.

Banks across Europe aretrying to reduce theirassets, hoping to free upcapital that they can use tomeet stricter regulatorydemands.

Operational results hadbeen “solid” in the past twomonths, Deutsche said, butits next quarterly resultswould include costs from itsde-risking and restructur-ing, as well as some chargesrelated to its Dutch busi-ness, bought from ABNAmro in 2009.

“We currently expectthese specific items to havea significant negativeimpact on the bank’s earn-ings in [the fourth quar-ter],” Deutsche said.

Shares in Deutsche fellafter the warning. By theclose in Frankfurt theywere 3.6 per cent lower at€33.23.

Mr Krause said he andJürgen Fitschen, Deutsche’sco-chief executive, had beentold they were now part ofprosecutors’ inquiries intothe alleged VAT fraud,which related to the Euro-pean Union carbon emis-sions market. The pair werenot among those arrested.

Prosecutors raided Deut-sche on Wednesday tosearch for evidence as partof the two-year inquiry.

Mr Krause also rejectedallegations by whistleblow-ers including Eric Ben-Artzi, a former bankemployee, who has ques-tioned the bank’s account-ing for some trades. “Thebank acted responsi-bly . . . valuations andfinancial reporting wereproper and the allegationsof fraud are whollyunfounded,” he said.

Establishment of the non-core unit was revealedwhen it pledged a strategyoverhaul in September.

DeutscheBank hitby one­offchargesBANKS

Unwanted assetsare hived off

Accounting methodfor trades defended

Honda is recalling 871,000vehicles to fix a fault thatcould cause them to rollaway after parking.

The Japanese carmakersaid most of the affectedvehicles, about 807,000,were in the US. Regulatorsthere said they had 43 com-plaints about the problem.

Quality problems atHonda have largely escapedpublic attention amid themore frenetic recall crisis atToyota, its larger Japaneserival, in 2010-11. But lastyear Honda recalled 2.5mvehicles because of a faultypart in their automatictransmissions.

This time, Honda said apart in the recalled vehi-cles’ ignition system couldbecome damaged or worn,enabling drivers to removethe key even if the auto-matic transmission was notsafely in “park”.

“If the transmission is notin park and the parking

brake is not set, the vehiclecould roll away and a crashcould occur,” it said.

The recall affects Odysseyminivans and Pilot cross-overs vehicles from 2003-04,and Acura MDX crossoversfrom 2003-06.

The US National HighwayTraffic Safety Administra-tion said it had investigatedcomplaints that vehicleshad rolled away to hitparked cars, fences andtrees. One person reportedsuffering a fractured legafter being struck by a roll-ing vehicle.

Jonathan Soble

Honda to recall 871,000vehicles with parking fault

CARS

An investment banker whopassed sensitive informa-tion to two lovers about atakeover deal has beenjailed for two years andeight months.

Thomas Ammann, 39, aGerman national whoworked for Mizuho Interna-tional, had admitted twocounts of insider dealingand two counts of encourag-ing insider dealing earlierthis year. Jessica Mang, 30,and Christina Weckwerth,44, the two women who con-sidered him to be their boy-friend and knew nothing ofeach other’s existence, wereacquitted of insider tradingby a jury in a five-weektrial last month.

Amanda Pinto QC, prose-cuting for the FinancialServices Authority, told asentencing hearing that MrAmmann in 2008 and 2009was working in the M&Ateam for Mizuho which wasadvising Canon on its

acquisition of Océ, theDutch photocopier maker.

He was one of a smallteam at Mizuho located in arestricted access area of thebank known as the “gold-fish bowl”.

He worked on the Océdeal and had access to non-public information, thecourt heard, but had nomoney to invest.

Mr Ammann passed infor-mation to the two womenand encouraged them totrade in the shares of Océ,according to the FSA.

Both Ms Weckwerth andMs Mang paid about 50 percent of their profits to MrAmmann, the court heard.

Judge Anthony Leonardsentencing Mr Ammannsaid that without hisencouragement he did notbelieve the two womenwould have invested in Océand the banker had sub-jected them to the very realrisk of being convicted forinsider trading.

Jane Croft

Ex­Mizuho banker jailedover insider dealing

BANKS

Driven to complain: 43Honda owners

A group of domestic lendershas invested €430m inequity into Spain’s state-run bad bank which Madridhopes will clear billions ofeuros of bad property assetsfrom the balance sheets ofnationalised banks.

However, while almost allof Spain’s large non-nation-alised lenders provided cap-ital for the so-called badbank, including BancoSantander, Caixabank andBanco Popular, its second-biggest lender BBVAdeclined to participate,having argued it was not anattractive investment.

The vehicle, known by itsSpanish acronym Sareb andwhich has capacity to house€60bn of assets, has nowcompleted its first capitalincrease, and plans to issuemore equity and sell subor-dinated debt to other inves-tors later this month, saidthe Frob, Spain’s bank bail-

out fund. The other lendersto participate were BancoSabadell and Kutxabank,the Basque savings bank.

While Luis de Guindos,Spain’s finance minister,has said foreign and finan-cial investors were inter-ested in participating, therehave been few indicationsof demand so far, with onlyFrench insurer Axa pledg-ing to invest €10m in Sareb.

Santander, Spain’s largestbank by assets, will invest€164m, Caixabank will buy€118m of shares, Sabadell€66m, Popular €57m andKutxabank €25m.

The government has saidthe investment period forSareb is likely to run to aslong as 15 years.

Alongside the €430m, theFrob will place €397m incapital, with the €827mtotal comprising the bulk ofSareb’s €1bn of equity. Therest will be made up of€3bn of subordinated debt.

Miles Johnson

Spanish domestic lendersinvest €430m in Sareb

BANKS

The Russian Direct Invest-ment Fund, the $10bn gov-ernment-backed fund set upto boost foreign privateequity investments in Rus-sia, is betting on US-borncinema entrepreneur PaulHeth to expand one of thecountry’s largest cinemachains.

The fund is joining Rus-sian private equity groupsBaring Vostok and UFG Pri-vate Equity in purchasing amajority stake in Karo FilmGroup, the companies saidin a statement. Mr Heth,who made a fortune invest-ing in Russia’s cinemas inthe 1990s, is also investingin the deal and will be chiefexecutive of Karo.

The financial terms of thetransaction were not dis-closed but the groups saidthey will inject $100m in thechain “to open newmultiplex cinema venuesunder the Karo brand

over the next three years.’’“We will immediately

make a substantial invest-ment into Karo’s existinginfrastructure to improveand upgrade Karo’s 3D andlarge format digital projec-tion capacity, improve itsfood and beverage offeringsand will work to enhancethe efficiency of the com-pany’s overall operations,’’

Mr Heth said in the state-ment.

The Karo Film Group, co-founded in 1997 by LeonidOgorodnikov, owns andoperates 31 movie theatresin cities including Moscow,St Petersburg, NizhyNovgorod and Kaliningrad.It expects sales of about$190m in 2012.

Anne-Sylvaine Chassany

Russian fund joins buyoutgroups to take cinemas stake

GENERAL FINANCIAL

Permal, one of the world’slargest funds of hedgefunds, is to acquire rivalFauchier Partners in a fur-ther sign of consolidation inthe industry.

Permal, owned by LeggMason, expects the transac-tion – which will give thecombined group $24bn inhedge fund investments,making it Europe’s largestfund of funds – to completein the first quarter of 2013.

Terms of the deal havenot been disclosed.

Assets under manage-ment at Permal have fallenfrom $19.3bn, when it wasacquired by Legg Mason for$800m in 2005, to $17bn atthe end of the last quarter.

Legg Mason said yester-day in a separate regulatoryfiling that it was takingnon-cash impairmentcharges of $650m to $750m.These relate to Permal andthe acquisition of Citi-

group’s mutual fund busi-ness, also acquired in 2005.

The group is under pres-sure from board memberNelson Peltz, an activistinvestor and Legg Mason’ssecond-largest shareholder,to turn round or reshape acollection of asset manage-ment businesses that havetrailed the growth and prof-itability of peers.

London-based Fauchier,which is majority-owned byBNP Paribas InvestmentPartners, has $6bn of assetsunder management.

The move is the latest ofseveral deals in the fund offunds industry, which isunder pressure as assetsshrink and hedge fundreturns diminish.

At the peak of the finan-cial boom, funds of fundswere once responsible forthe bulk of the hedge fundindustry’s assets undermanagement.

Sam Jonesand Dan McCrum

Permal’s deal for Fauchierwill create $24bn fund

GENERAL FINANCIAL

$100mAmount groups said theywill inject into Karo chain

Canada has stopped fundingthe purchase of 65 JointStrike Fighters in a seriousblow to the US’s mostcostly military programme,led by Lockheed Martin, theworld’s biggest defencecontractor by revenues,writes Carola Hoyos.

The decision means thejetfighter is no longer first inline to replace Canada’sageing Boeing F­18s.

Instead, the JSF, alsoknown as the F­35 LightningII, will now have to competewith others, such Boeing’sF­18 Super Hornet andperhaps even the EurofighterTyphoon, built by BAE,EADS and Finmeccanica.

It is a setback for theother eight nation partners

whose own JSF purchasesare likely to become evenmore expensive, and forBAE Systems, Europe’sbiggest defence contractor,which is helping Lockheed tobuild the aircraft.

Rona Ambrose, Canada’spublic works minister, said:“We have hit the resetbutton and are taking thetime to do a completeassessment of all availableaircraft.”

Canada’s decision followsa report by KPMG, theauditor, that showed thatthe purchase would costC$45bn ($45bn) over 42years.

Canada’s conservativegovernment initially sold theF­35 as a C$9bn purchase

and had come underincreasing pressure toreconsider after last spring’sdamning report by theauditor general, who saidthe F­35 had been selectedwithout properly weighingprice and availability.

The overall programmenow carries a price tag ofmore than $1 trillion over 50years following years ofprice escalation and delays.

Canada’s pledge to buy 65planes is small compared tothe 2,443 aircraft the USplans to purchase and the3,173 total programme size.

Nevertheless, any decisionby Ottawa to pull out of theprogramme altogether wouldstrengthen the hand of thegrowing opposition to JSFs

among other partners, manyof whose governments arealready fiercely debatingwhether the costs are worthit, especially whengovernment coffers are bare.

The programme relies oneconomies of scale to bringdown the cost of theaircraft, which many see asthe world’s most modernmanned fighter jet, inparticular because it canevade detection.

Canada was due to buyits aircraft relatively early inthe programme, so adecision to cancel altogetherwould raise the price fornations whose purchasescome later.

Additional reporting byRobert Wright in New York

If Ottawa cancels its plan to buy 65 Joint Strike Fighters it would raise the price for other nations in the programme Reuters

Canada ditches funding for jetfighters

Meddling does Italian industry more harm than good

Economic recession and declining militarybudgets in core markets are an unhelpfulcombination for any defence company.

Mix in political interference and achronic lack of strategic focus, and youarrive at the toxic compound that makesFinmeccanica unique.

The outlook for Italy’s second-largestindustrial group by sales would doubtlessbe brighter if Giuseppe Orsi, its chairmanand chief executive, were free to make theasset disposals required to raiseprofitability, cut debt and avoid a creditrating downgrade. But Mr Orsi is fightingthis battle with one hand tied behind his

back. The forces restraining him comefrom the Italian political, bureaucratic,industrial and trade union establishments.

The businesses earmarked for sale areFinmeccanica’s underperforming energyand transport subsidiaries. Without them,the company would have a strong casethat its transformation, begun 10 yearsago, from heavy engineering conglomerateto defence and aeronautics specialist iscomplete. Yet the subsidiaries remainchained to Finmeccanica like lead weights,blocking the efficient allocation of cashand depressing gross and pre-tax margins.

There is a provisional €1.3bn offer onthe table from Siemens of Germany forAnsaldo Energia, the power plants andturbines producer in which Finmeccanicaholds a 55 per cent stake. But it is hardthese days to find anyone in the corridorsof Italian power brave enough to defendthe sale to foreigners of a tiddlywinksmaker, let alone a national symbol ofheavy industry that employs 3,000 workers.

It is tempting to blame this timidity onpre-election tensions that intensified lastweek when Silvio Berlusconi, the ex-

premier, announced his return to frontlinepolitics and Mario Monti, his successor,gave notice of his imminent resignation.With Italy’s parliamentary elections amere two or three months away, so theargument goes, the sale of AnsaldoEnergia to Siemens would hand nationalistammunition to political forces hostile tothe economic reform course charted by MrMonti’s technocratic government.

This interpretation ignores three points.Firstly, few public figures have spokenmore forcefully in favour of finding anItalian buyer, not a foreigner, for AnsaldoEnergia than Corrado Passera, a formerbanker who is Mr Monti’s industryminister. On this issue the differencebetween Mr Passera’s attitude and that ofItaly’s professional politicians and unionleaders is no wider than a cigarette paper.

Next, the reason why governmentofficials – even non-party men such as MrPassera and Vittorio Grilli, financeminister – feel free to influenceFinmeccanica’s business deals is becausethe state owns 32 per cent of the company.Just like the conservative Mr Berlusconi

and the Italian leftists, the Montitechnocrats will give up this shareholdingover their dead bodies.

Lastly, there exists the possibility thatSiemens will jump away from the AnsaldoEnergia deal and Fondo StrategicoItaliano, a state-backed fund, will jump inas a minority investor. If this were tohappen, it would be consistent with apattern of state involvement in businessno less characteristic of the Monti erathan it was of the premierships of MrBerlusconi and Romano Prodi, the centre-left prime minister from 2006 to 2008.

The continuities in the Italian state’sindustrial policy are, if anything, evenmore striking than the political rupturerepresented by Mr Monti’s replacement ofMr Berlusconi as premier in November2011. Consider FSI, a fund whosecontrolling shareholder is Cassa Depositi ePrestiti, a financing agency that is in turn70 per cent owned by the Italian state.

FSI’s birth in July 2011 was announcedby Giulio Tremonti, Mr Berlusconi’sfinance minister, and Mr Grilli, then theItalian treasury’s chief civil servant who is

now finance minister. FSI, under Mr Grilli,hopes to buy a minority stake in Avio, theaerospace and aviation company of whichFinmeccanica was once a part-owner. Itstretches credulity to think matters wouldhave been different under Mr Tremonti.

For a second example, look no furtherthan Alitalia. As the airline dived towardsbankruptcy during Mr Berlusconi’spremiership, it was sold to an Italianconsortium in a deal smoothed by MrPassera, then wearing his banker’s hat.Alitalia, by the way, is still in Italianhands and still losing money.

The Monti technocrats deserve credit forrepairing Italy’s public finances andintroducing a few modest structuraleconomic reforms. But their industrialpolicy is new wine in old bottles. If theyreally want Finmeccanica to prosper as agold-standard defence group, they shouldlet its disposals proceed without meddling.

Tony Barber is the Financial Times’sEurope Editor

tony.barber@ft.comwww.ft.com/insidebusiness

TonyBarberINSIDE BUSINESS

on Europe

COMPANIES ROUND­UP

More news at FT.com/companies

●Newedge plans job cutsand restructuringNewedge, one of theworld’s largest futuresbrokers, is planning aradical restructuring and joblay­offs in the face of aprolonged slump in tradingvolumes and risingregulatory costs. The Paris­based group yesterdayunveiled plans to separateexecution and clearing forits financial futures andoptions businesses andwithdraw from unprofitableunits and regions. It hasentered into negotiations

with regulators andemployee representativecommittees but up to 15per cent of its workforce,about 400 jobs, are at risk.Société Générale, pictured,and Crédit AgricoleCorporate and InvestmentBank, Newedge’s 50­50shareholders, have backedthe plan, Newedge said. Itsresponse shows the depthof malaise affecting the$40tn US futures industry.

●Mutual insurancegroups win market shareMutual insurance companiessaid they were benefitingfrom a popular backlashagainst shareholder­ownedfinancial institutions asfigures showed they hadincreased global marketshare since the crisis. “Thegrowth . . . could be seen asa reaction by customersagainst the greed culturepropagated by shareholderinsurance companies,” saidShaun Tarbuck, CEO of theInternational Co­operativeand Mutual InsuranceFederation.

€122bnValue of assets the bankhas put in a non­core unit

DECEMBER 14 2012 Section:Companies Time: 13/12/2012 - 19:22 User: hyltonm Page Name: CONEWS1, Part,Page,Edition: USA, 14, 1

FINANCIAL TIMES FRIDAY DECEMBER 14 2012 ★ 15

COMPANIES

The exposed brick walls, open workbenches and large flat screens in theSan Francisco office of Sasha Orloff’sstart-up make it feel like any othertrendy young Californian internetcompany. But Mr Orloff is not tinker-ing with the photo-sharing apps orother consumer trivia that litter thestart-up landscape: his company,LendUp, has just joined the paydayloans business.

A practice at the bottom of the lend-ing scale that turns on advancingunsecured money to people with littleor no credit standing, this is an indus-try whose more familiar public face isa ramshackle store with large dollarsigns over the door.

Some of Silicon Valley’s brightestthink they have a better approach. Bylogging in with their Facebook details,LendUp’s customers have the optionof exposing their online social behav-iour to its data-crunching algorithms.Watching how you behave online withyour friends, according to the com-pany, is a good indicator of how likelyyou are to repay a loan.

“The hypothesis is that strongsocial ties and community are abenchmark for responsibility,” saysMr Orloff, a former credit analyst atCitibank. “Are you in your commu-nity, or are you dabbling here andthere?” The stronger and more activeyour social connections, the morelikely you are to get a loan.

As new sources of data multiply andthe cost of collecting and processing itcollapses, ideas like this are springingup all over the financial landscape.With its core products founded oninformation, the financial industry ismore open to disruption from heavy-duty data-crunching techniques thanmost, according to investors who haveflocked to the business.

“Everything [in finance] reallysprings from data,” says Roger Ehren-berg, a former hedge fund manager atDeutsche Bank who now makesinvestments in so-called big data com-panies.

The falling costs of computing andcommunications lie behind the explo-sion in data that is triggering thisupheaval. The founder of ProgressiveInsurance, a US car insurer, firstdreamt of collecting informationabout his customers’ individual driv-ing habits to help with risk assess-ment in the late 1980s. It was only in2010 that the idea became cost-effec-tive: since then, more than 1m cus-tomers have installed devices in theircars that report back how abruptlythey brake or whether they are heavyon the accelerator.

“The network of sensors is openinga universe of data that previously youcouldn’t get at,” says Richard Hutch-inson, general manager of usage-basedinsurance at Progressive.

The architecture of the open webhas also contributed, making it easierfor newcomers to ingest feeds of dig-ital information. Drawing on APIs, oropen interfaces, from companies suchas eBay and PayPal, Kabbage, anonline lender to small businesses inthe US, says it can track “thousandsof data elements” that help reveal thehealth of a customer’s business.Through a special deal with UPS italso gets parcel shipment data. Throwin Facebook, and it has become possi-ble to get a detailed sense of how asmall business is faring,says KathrynPetralia, chief operating officer: “Youcan measure the level of reciprocalengagement between a company andits customers.”

In the consumer field, strict laws inthe US limit the use of data like thisto make credit decisions that mighthurt particular groups of individuals.But that hasn’t stopped the experi-mentation. Besides information fromtraditional credit-rating bureaus and

social networks, LendUp mashes upmany other public sources: if a cus-tomer has changed cellphone num-bers multiple times, for instance, it isprobably an indicator of weak socialties and hence a bad credit risk, saysMr Orloff.

Number crunching on an epic scaleis not new to consumer finance. Thecredit card industry has been amongthe most advanced when it comes tousing data for market segmentationand database marketing. Nor is thereanything unusual about the idea of aninterloper using superior data analy-sis techniques to carve out a signifi-cant slice of an established financialmarket: CapitalOne managed the featin the 1990s, becoming one of the larg-est US credit card issuers.

The new technologies of big data,however, are threatening to level theplaying field with even the most data-intensive incumbents. Companies likeLendUp and Climate Corporation,which analyses weather patterns toprice crop insurance for farmers, saythey run frequent massive simula-tions with their data, using technol-ogy platforms that were purpose-builtfor heavy-duty number crunching.Rivals with legacy platforms may notbe able to respond as quickly.

The technologies of the cloud havealso lowered the economic barriers tocompetition, says Zach Bogue, afounder of Data Collective, anothergroup that invests in big data compa-nies. Rather than facing significantupfront capital spending, start-upscan now tap into the processingpower of companies like Amazon on apay-as-you-go basis, he says.

Core disciplines like risk manage-ment, credit assessment and con-sumer marketing are all being influ-enced by this rise of data-intensiveapplications. But the next frontierstands to be more disruptive, as bigdata usher in a new level of productdifferentiation.

Dynamic pricing – or using realtime data to price services on the fly –points to one of the areas of greatestpotential, according to many investorsand entrepreneurs.

For instance, Wealthfront, an onlineinvestment manager, says it adjustsits clients’ holdings frequently to rec-ognise losses that bring tax benefits.

The technique, known as tax-loss har-vesting, is usually only practised atperiodic intervals: turning the prac-tice into a dynamic activity stands toadd 1 per cent to investment returns,according to Andy Rachleff, chiefexecutive.

Progressive is also looking at waysof applying real-time data to createbetter services, says Mr Hutchinson.“When you start capturing data on aper-second basis, the expansion of thedata is immense.”

Among the new ideas are utility-style pricing, under which driverswould be charged based on how oftenthey use their vehicles, and insuranceplans for car-sharing services thatadjust the policy depending on who isusing a car. As always in finance,such innovations are likely to comefirst from the most forward-lookingcompanies with the best number-crunching skills. The challenge forthe rest, as the pace of innovationaccelerates, will be to keep up.

The industry is more used to disruption from crunching techniques than most, writes Richard Waters

Data open doors to f inancial innovation

Among thenew ideasare utility­style pricing,under whichdriverswould bechargedbased onhow oftenthey usetheirvehicles

Finding the patterns

Applying brute computing power tothe task of predicting futuremovements in financial markets is adream that has been around almostas long as computers themselves.With a combination of big data andthe latest advanced algorithms,according to some experts, thatmoment may finally be close, writesRichard Waters.

Behind this confidence lies a beliefthat if you only knew how to lookhard enough, patterns would appearin seemingly random markets.

“It’s not completely random andunpredictable: there are regularitiesin financial markets,” says TomMitchell, head of machine learning atCarnegie Mellon University, home toone of the US’s most respectedcomputer science departments.

Mr Mitchell is one of those nowapplying cutting edge science tomaking trading profits – in his casethrough Meta Alpha, a start­up thatsells its services to specialistcommodity traders. The group’ssystem draws on “thousands andthousands of variables” covering a“vast array of financial market andmacroeconomic data”, says VictorLong, chief executive. The algorithmsused to crunch this ocean of data insearch of predictable patterns areenhanced through machine learning,through which they are automaticallyfine­tuned based on results.

Included in the streams of datatapped by the algorithms areunstructured sources drawn from theweb. An important indicator forApple’s stock, for instance, might be“what people are saying on theirblogs about the iPad mini,” says MrMitchell. It is through “never­endinglearning systems” like these, whichbecome smarter the moreinformation they are able to crunch,that the real benefits of big data willbe felt. In one example of machinelearning, algorithms written by CMUhave been crawling the webcontinuously for nearly three years,seeking to parse progressively moreof the information as they get betterat “understanding” it. “It gets a littlebit better every day. It’s a system wenever plan to turn off,” he says.

BIG DATAONLINEThis is the fifthand final part ofthe series. To readprevious articles,go towww.ft.com/bigdata

DECODING BIG DATA

Insurance

Source; FT research FT graphic

Use of big dataElectronic recording ofmotorists’ driving behaviour

Progressive Insurance

BenefitMore accurately set premiums

Use of big dataAnalysis of clients’ social mediaconnections

LendUp

BenefitSocial ties give indication ofresponsibility

Use of big dataAnalysis of social media, eBayand UPS data

Kabbage

BenefitGauges relationships betweencompanies and their customers

Use of big dataAnalysis of data relating tolocal economies

JPMorgan Chase

BenefitBetter assess the value of realestate underlying mortgageloans at risk of default

ConsumerLoans

Small businessLending

RiskManagement

Changing the face of finance

By Paul Taylor andDavid Gelles in New York

Clearwire minority share-holders are objecting to theprice Sprint Nextel is offer-ing to buy them out, poten-tially complicating Sprint’smove to take full control ofthe company’s valuablespectrum.

Yesterday, Sprint Nextelrevealed plans to acquireshares of Clearwire that itdoes not already own for$2.90 per share, or a total of$2.1bn.

Sprint raised its stake inClearwire to 50.8 per cent inOctober, but it still needs toacquire the rest of Clear-wire’s shares to gain fullcontrol of the spectrum itcovets, which is overseenby a special committee atClearwire.

If successful, the offerwould resolve ambiguitiesabout the sometimes frac-tious relationship between

Sprint Nextel, the third-largest US wireless opera-tor, and Clearwire.

But even before Sprint’sformal offer was on thetable, shareholders wereobjecting to the price,which was leaked thisweek.

“We believe it might takemuch more than $3 pershare for Sprint to take con-trol of Clearwire,” saidBTIG analyst Walter Piecykin a note.

Mount Kellett CapitalManagement, which owns6.75 per cent of outstandingshares, has said Clearwire

shares are worth as muchas $8 each. Other majorshareholders said $3 was fartoo low, and suggested thata price of $6 was more rea-sonable.

Much will depend onwhether Comcast and Intel,which each own substantialstakes in Clearwire, arewilling to sell their sharesto Sprint. Neither companyhas given any indication ofhow much they are willingto sell for.

Sprint may go aheadwith a deal even at ahigher price, analysts say.“It will be well worth theprice in order to secure allof Clearwire’s spectrum forits own use, keep it out ofthe hands of competitorsand eliminate materialroaming expense,” Mr Pie-cyk said.

The move comes just sixweeks after Japan’s Soft-Bank announced plans toacquire a 70 per cent stakein Sprint Nextel as part of astrategy aimed at turning

Sprint Nextel into astronger rival to VerizonWireless and AT&T Mobil-ity, the two largest USmobile operators.

The planned SoftBanktransaction and a relatedconvertible bond sale com-pleted last month wouldprovide Sprint Nextel withthe funds it needs toacquire additional wirelessspectrum and play a largerrole in the continuing con-solidation of the US mobilephone market.

Sprint said yesterday thatit planned to fund the pur-chase from its working cap-ital and has proposed toprovide interim financing ofup to $800m to Clearwire.

Clearwire confirmed thatit was in talks with Sprintregarding a potential strate-gic transaction. A specialcommittee of the Clearwireboard of directors hasbeen reviewing the offercontained in a proposaltabled by Sprint onWednesday.

Clearwire investors query Sprint offerMOBILE & TELECOMS

Sprint needs to acquire therest of Clearwire’s shares

DECEMBER 14 2012 Section:Companies Time: 13/12/2012 - 19:40 User: russjadmin Page Name: CONEWS2, Part,Page,Edition: EUR, 15, 1

16 ★ FINANCIAL TIMES FRIDAY DECEMBER 14 2012

COMPANIES

BG Group will replace itschief executive Sir FrankChapman with Chris Fin-layson following a pro-tracted run-off for the posi-tion launched last year.

The decision by the FTSE100 oil and gas producercomes amid wider concernson BG’s ability to deliverkey projects in Australiaand Brazil on time and onbudget in the coming years,and follows a surprisewarning on production lev-els that hit its share pricein October.

Mr Finlayson, a formerRoyal Dutch Shell executiveand now head of BGAdvance – which managesexploration, capitalprojects, IT and technology– will take the helm onJanuary 1, with Sir Frankmoving to an advisory roleuntil retiring in June.

The decision leaves Mar-tin Houston, chief operatingofficer, and finance directorFabio Barbosa as losers inthe race for the top execu-tive job. The protractedrace has been complicatedby Mr Barbosa’s forcedleave of absence because ofillness announced inSeptember.

This – in spite of hisinclusion alongside SirFrank at results presenta-tions this year – hadappeared to rule Mr Bar-bosa, the former chief finan-cial officer of Brazilianmining company Vale, outof contention.

That left Mr Finlayson,who joined BG Group’sboard 13 months agoshortly after his arrivalfrom Shell, in a straightinternal shoot-out with MrHouston, a BG veteran whojoined BG’s predecessorBritish Gas in 1982.

Mr Finlayson’s experienceincludes spells developingShell’s liquefied natural gasinterests in Nigeria andhandling the developmentof its Sakhalin 2 project in

east Russia. The issue ofwho would succeed SirFrank was complicated by aparallel search for suitableexternal candidates con-ducted by Andrew Gould,chairman.

Mr Gould yesterday saidthe board decision toappoint Mr Finlayson hadbeen unanimous. “Theboard identified andassessed three internal can-didates and a number ofexternal candidates. It wasa tough competition butreached a clear conclusion.”

The impact of illness ondeparting chief executiveSir Frank on successionplanning was also playeddown by the company. BGsaid yesterday that SirFrank had since June beenreceiving medication forearly stage myeloma – aform of cancer affecting theproduction of plasma cellsin bone marrow.

BG was keen to point out

Sir Frank had suffered nosymptoms or side effectsfrom the condition andremained fit to continuebeyond December as anadviser to the company.

However, the expectationthat Sir Frank would host aBG strategy day in Febru-ary as his swansong, along-side the announcement offull-year results, had beenabandoned. The strategyupdate will now be heldlater in the year.

Mr Finlayson inheritsambitious growth plansthat, though potentiallytransformative, also riskstretching BG beyond itsmeans.

“The underlying chal-lenges are relatively severefor whoever takes over,”Stuart Joyner, an Investecanalyst said. “But Chris is aseasoned operator so he’llbe perceived as a safe pairof hands.”

Shares in BG Group fellby 18p to £10.47 yesterday.

See Lex

Former Shellexecutive namedas new BG chiefOIL & GAS

News analysisMove as UK grouppushes to deliverkey projects, writeMichael Kavanaghand Rose Jacobs

‘The underlyingchallenges arerelatively severefor whoevertakes over’

Stuart Joyner, Investec

Molycorp, the largest pro-ducer of rare earth metalsoutside China, has set tostrengthen the company’sfinances as a priority for itsnew interim chief execu-tive, as it struggles withplunging prices for its prod-ucts and a heavy capitalspending programme at itsmine in California.

Mark Smith, the previouschief executive, was firedby the board on Tuesday,and the company will berun by Constantine Karay-annopoulos, the vice-chair-

man, until a permanentreplacement is found.

One of Mr Karayannopou-los’s principal objectiveswill be securing “a suffi-cient liquidity cushion”, bymeans of cash generation,cost cuts, fresh credit facili-ties and “other sources”,the company says.

Rare earth metals such asneodymium and praseodym-ium are essential for manyproducts and industrialprocesses, from smart-

phones to cruise missiles.China’s control of worldsupply – it has accountedfor about 95 per cent of glo-bal output – has fuelled con-cerns about its dominanceand excitement about theprospects for rival supplierssuch as Colorado-basedMolycorp.

However, oversupply ofrare earths has caused aslump in prices, and thecosts of raising productionat its Mountain Pass minein California have sentMolycorp’s shares tumbling87 per cent from their peakat more than $79 last yearto only $10.70 in middaytrading yesterday.

Molycorp also said lastmonth that it was underformal investigation by theSecurities and ExchangeCommission, the US regula-tor, about “the accuracy ofthe company’s public disclo-sures”.

The SEC has given no fur-ther details.

The company says thatMr Smith’s departure has“absolutely nothing to dowith the investigation”.

Instead, Ross Bhappu, thechairman, has said that theboard decided to replace MrSmith with “a proven busi-ness leader with industryexperience, a track recordof operational excellenceand management experi-ence to execute Molycorp’sstrategy”.

The company’s financeshave been strained byheavy spending on ProjectPhoenix at Mountain Pass:an array of facilities tomine, crush and process ofrare earth metals.

By the year’s end, produc-tion will be running at thetarget rate for phase one:

annualised 19,050 tonnes ofrare earth oxide equivalentper year.

Already 80 per cent of thefacilities are able to operateas planned.

To add that capacity con-tributed to a $1.31bn cashoutflow in the nine monthsto September – sharply upfrom the outflow of $169min 2011’s equivalent period.

While costs were rising,revenues suffered from fall-ing rare earth prices. Theprice in China of ceriumoxide – one of Molycorp’sprincipal products – usedfor polishing glass, fell fromabout $21,300 per tonne ayear ago to about $9,150 thismonth, said MetalMiner, aninformation service.

Lanthanum oxide, Moly-corp’s other main product,has also halved in price,from about $20,500 pertonne to about $9,470 pertonne over the same period.

This double squeeze onMolycorp’s cash pushed itfrom net cash to net debt of$780m during the 12 monthsto September. It plans fur-ther capital spending nextyear, albeit at a reducedrate, to complete the facili-ties in phase one of ProjectPhoenix and to deliver

phase two, which woulddouble capacity to 40,000tonnes per year.

It raised $528m in anissue of convertible bondsand shares in August.JPMorgan analysts said thisweek that they expected itwould have to raise addi-tional capital early nextyear.

Molycorp executives arebullish about long-termprospects for rare earths.They reject the conspiracytheory that suggests Chinais trying to discourage rivalproducers by allowingprices to collapse.

Analysts warn, however,that as increased produc-tion comes on to the marketfrom Molycorp and Lynas ofAustralia, which has builtfacilities in Malaysia,rare earth prices could fallfurther.

Molycorpdrive forcash gainsintensityMINING

News analysisGroup strugglingwith falling rareearths prices andcapital spending,writes Ed Crooks

Molycorp

Sources: Thomson Reuters Datastream; MetalMiner IndX (sm)

Share price ($)Rare earths price indexJan 2012 = 100

Jan 2011 Dec20120

10

20

30

40

50

60

70

80

Dec2012Jan40

50

60

70

80

90

100

A Molycorp plant manager at Mountain Pass, California. Oversupply of rare earths has caused a slump in prices Bloomberg

By Charles Cloverin Moscow andJavier Blas in London

Faced with the need to raiseas much as $45bn in cash tofund the largest nationalisa-tion in Russian history,Rosneft is negotiating withoil traders to raise part ofthe cash through future oilexport sales.

An industry executivesaid the state oil companyhas approached “the regu-lar names in the industry”such as Vitol and Glencoreas well as major oil compa-nies with trading opera-tions: Total, Royal DutchShell and BP, in an effort toraise billions of dollars inforward oil sales.

However, he said: “It isvery early days in the nego-

tiations – Rosneft is talkingto big trading houses andmajor oil companies aboutpre-export finance deals.”

State-controlled Rosneftannounced the purchase ofTNK-BP in October, for$55bn, of which $45bn is tobe paid in cash for the two50 per cent stakes held byBP and AAR.

Alexander Burgansky, anoil and gas analyst at Otkri-tie, the Moscow-based bro-kerage, said it was “prettyreasonable” for Rosneft totry to raise extra moneyfrom oil producers and trad-ers in the form of financingbacked by export contracts.

“It’s a very common wayof raising funds – maybenot that common in Russiabecause Russian companiesnever needed it. But nowRosneft is in a situationwhere they need to explore

every option of financingthey can find.”

Pre-export finance deals,while common, are expen-sive for the oil companiesas they lose control of someof their production.

Petrobras of Brazil,Sonangol of Angola andPDVSA of Venezuela haveall tapped Chinese banksfor pre-export finance dealsin the past five years.Industry executives said oil-trading houses had lent$500m–$2bn over severalyears to state-owned oilcompanies in countriesfrom Ghana to Kazakhstanin such deals.

Rosneft has agreed termsalready for a $30bn loanfrom a syndicate of foreignbanks, and $7.5bn of thisfunding is expected to belong-term. It has also placed$3bn worth of eurobonds.

In addition, Mr Burgan-sky suggested Rosneft couldreceive money from its con-trolling shareholder Ros-neftegaz following the saleof a 12 per cent stake in

Rosneft to BP. The 12 percent stake could garner$5.7bn, he said.

Rosneft’s future oil sales,first reported by Reuters,also have a precedent. InFebruary 2005 Rosneft wasrevealed to have arrangedfor a $6bn pre-paymentfrom CNPC of China forexports until 2010, with Chi-nese and Russian statebanks as agents. Specula-tion was considerable thatthe loan was to be used tofund Rosneft’s acquisitionof Yuganskneftegaz, themain production unit ofYukos, which was auc-tioned off in December 2004to help cover $28bn in back-tax claims. Rosneft deniedthe loan had anything to dowith the Yugansk auction.

Additional reporting byCourtney Weaver and GuyChazan

By Michiyo Nakamotoin Tokyo

Bank of America MerrillLynch is disposing of itsJapanese private bankingjoint venture with Mitsubi-shi UFJ Financial Group,becoming the latest in astring of foreign banks topull out of high net-worthretail banking in Japan.

BofA is selling its 49 percent stake in the joint ven-ture, which Merrill Lynchand MUFG set up in 2006, tothe Japanese group forabout Y39bn ($470m).

However, the US bankwill continue to provideproducts and business sup-port to the private bankingbusiness for the time being,the groups said.

The decision to dissolvethe joint venture in Japanfollows BofA’s sale of itslossmaking, non-US wealthmanagement business toJulius Baer, the Swiss pri-vate bank, for SFr1.56bn($1.7bn), in August.

The joint venture withMUFG was not included inthat deal.

MUFG is increasingly co-operating round the worldwith Morgan Stanley, theUS bank in which it has a22 per cent stake, NobuyukiHirano, president of Bankof Tokyo-Mitsubishi, thecore bank in the MUFGgroup, told the FinancialTimes this month.

The private banking saleby BofA follows movesby HSBC and StandardChartered to pull out of themarket serving Japan’s

high net-worth individuals.HSBC closed its premier

banking business – target-ing those with Y10m ormore in financial assets –and a year ago sold its pri-vate banking operations toCredit Suisse. StandardChartered is to close itspriority banking businessnext spring.

Stanley Sawai, a partnerin the financial servicesdivision of KPMG Azsa inTokyo, said: “Japan is a

difficult market for foreignbanks. It’s a very expensiveplace to do business . . . andas a result, profitability isquite low.”

Before the financial crisis,foreign banks had looked toJapan, with its Y1,500tn inhousehold financial assets,as a promising and largelyuntapped market for pri-vate banking services.Japan’s financial regulatorhad also campaigned for ashift from savings to invest-

ments. However, 56 per centof Japanese householdassets are still held as cashor bank deposits, accordingto the Bank of Japan.

The private banking jointventure between BofA andMUFG had operating reve-nues of Y25bn in the year toMarch 2012 and net profitsof Y6.8bn.

The joint venture’s assetsunder management haveincreased steadily over theyears, a representative ofMUFG said.

“While Japan has notseen much of a shift fromsavings to investments, inthe long run, we believethat shift will occur,” hesaid.●MUFG is seeking to buy a20 per cent stake inVietinBank from the Viet-namese government forY60bn, Japanese mediareported.

Japanese banks havebeen expanding overseas tomake up for stagnant loandemand at home.

Last year, Mizuho agreedto acquire a 15 per centstake in Vietcombank,another Vietnamese state-owned lender.

Rosneft in oil trader talks to fund TNK­BP dealOIL & GAS

BofA pulls out of Japan private bankingBANKS

MUFG becomes latest bank fined over US sanctions

Mitsubishi UFJ FinancialGroup has agreed to pay an$8.6m fine after admittingto violating US sanctionsagainst transferring fundsto accounts held by citizensof Myanmar, Sudan, Iranand Cuba, writes MichiyoNakamoto.

Japan’s biggest bankinggroup is the latest financialinstitution to settle with USauthorities over allegedbreaches of sanctions. Thisweek HSBC paid a record$1.92bn fine for allegedmoney laundering while

Standard Chartered paid$667m to settle chargesthat it violated US sanctions.

MUFG said its violationscame to light after itconducted an internalinvestigation and found 97cases between 2006 and2007, totalling $5.9m, inwhich the bank hadtransferred dollars fromJapan to accounts in a thirdcountry held by citizensfrom the four countries thenfacing US sanctions.

More than 80 per cent ofthe transactions involved

accounts held by Sudan andMyanmar nationals, MUFGsaid. Employees at Bank ofTokyo Mitsubishi, the mainbank in the MUFG group,had deleted or omittedinformation that would haveprevented the transfersgoing through, it said.

The bank said it had “fullyreviewed its operationsmanagement framework andOFAC [Treasury’s Office ofForeign Assets Control]acknowledged that BTMUhas undertaken significantremediation efforts”.

State­owned Rosneft isbuying TNK­BP for $55bn

By Tracy Allowayin New York

MetLife, the biggest lifeassurer in the US by marketvalue, says that profits nextyear could be much lowerthan expected because oflow interest rates.

The warning comes a dayafter the Federal Reservesaid it would keep rates atrecord lows until employ-ment falls below 6.5 percent. While the low ratesare expected to spur theeconomy, they are alsoputting pressure on theprofits made by financialcompanies such as insurersand banks.

MetLife said in a state-ment yesterday that itexpected operating earn-ings, which exclude tax andinterest expenses, would bebetween $5.5bn and $5.9bnnext year. That equates toabout $4.95-$5.35 a share –well below the $5.47 a sharethat analysts had beenexpecting.

Life assurers, with bil-lions of dollars of longer-dated liabilities, are hardhit by the low rates, whicheat into the money theymake from reinvesting theirpremium payments to coverinsurance payouts.

While MetLife had previ-ously said it was able tocope with low rates,because of a hedging pro-gramme struck in the mid-2000s, the company saidyesterday that it wouldhave to accelerate a

planned strategic overhauland forego share buybacksnext year to deal with con-tinued low rates. The planincludes selling off thegroup’s eponymous bankcompany and increasingvariable annuity sales.

“In light of a lower-for-longer interest rate sce-nario, we have a heightenedsense of urgency about ourstrategic initiatives,” saidSteven Kandarian, chiefexecutive.

“We are focused on thelevers we can pull to meetour financial objectives.”

MetLife also said itexpected profits this year of$5.5bn–$5.6bn, or $5.15 to$5.25 a share. That’s at thetop end of analysts’ fore-casts despite MetLiferecording a loss of as muchas $95m from superstormSandy. Selling off MetLifeBank is also expected tofree more capital for use inother areas of its business.

This week, a bank regula-tor gave conditionalapproval for MetLife to sell$6.5bn of bank deposits toGeneral Electric – anotherstep towards the insurerridding itself of its capital-costly status as a bankholding company.

Banks have been tryingto cope with the low rates,in some cases by investingin higher-yielding securi-ties. Lloyd Blankfein, Gold-man Sachs’ chief, said onWednesday that invest-ments in certain types ofdebt could lead to portfoliolosses when rates eventu-ally increase.

Low interestrates set todent prof its,says MetLife

One of [the newchief’s] principalobjectives will be tosecure ‘a sufficientliquidity cushion’

LIFE ASSURANCE

Legal Notices

DECEMBER 14 2012 Section:Companies Time: 13/12/2012 - 19:20 User: hyltonm Page Name: CONEWS3, Part,Page,Edition: USA, 16, 1

FINANCIAL TIMES FRIDAY DECEMBER 14 2012 ★ 17

DECEMBER 14 2012 Section:Ad Page Time: 13/12/2012 - 12:14 User: leej Page Name: AD AERO, Part,Page,Edition: USA, 17, 1

18 ★ FINANCIAL TIMES FRIDAY DECEMBER 14 2012

COMPANIES

By James Crabtreein Mumbai andLeslie Hook in Beijing

Anil Ambani’s Relianceconglomerate is exploring atie-up with China’s DalianWanda Group, a property

developer, which would bethe latest in a series of Chi-nese deals for the Indianbillionaire’s struggling busi-ness empire.

The two groups said in astatement that they wereworking on a potential jointventure to develop propertyalready owned by variousdivisions of Reliance in twoIndian cities.

Mr Ambani is one ofIndia’s most high-profilebusiness tycoons, but histelecoms, infrastructureand financial services-

focused empire has facedfalling profits and risingdebts in recent years, asIndia’s economy hasslowed.

The Dalian Wanda Groupis one of the biggest prop-erty developers in China,with $35bn in assets thatspan shopping malls, cine-mas, apartments and film-making studios.

Its founder Wang Jianlinhas embarked on a boldprogramme to expand hisholdings overseas, and inMay bought AMC Theatres,

the US cinema chain, for$2.6bn.

Mr Ambani said: “Overthe past few years, RelianceGroup has become the sin-gle largest trading partnerbetween India and China.We are now looking for-ward to extend our strate-gic partnership.”

Reliance has typicallysought cheap funding fromChinese state-backed banks,beginning with a pioneeringdeal in 2010 that allowed itto buy up to $10bn worth ofChinese equipment for Reli-

ance Power. Earlier thisyear Mr Ambani’s group,which earned profits of$587m on revenues of$10.2bn last year, borrowed$1.2bn from a trio of Chi-nese state-backed banks torefinance a looming bonddebt.

The potential propertyventure comes amid grow-ing signs of interest in Indiafrom Chinese companies,and also follows a move lastmonth by the Indian powergroup Lanco Infratech toraise up to $2bn from China

to fund new investment.Commenting on the

agreement, Wanda’s MrWang said: “India is theworld’s second most popu-lous nation after China,with a rapidly developingeconomy and huge marketpotential. Wanda is veryexcited about the opportuni-ties in the Indian market.”

The two companies saidtheir venture would exam-ine a land developmentproject in Navi Mumbai, asatellite city of India’sfinancial capital, and an 80-

acre site in Hyderabad, afast-growing western city.

Although neither com-pany commented on thesize of the deal, one personfamiliar with the thinkingbehind the two projects esti-mated that they could ulti-mately be worth about$1bn-$1.5bn.

In an interview earlierthis year, Mr Wang told theFinancial Times that hisgoal was to build Wandainto a “world-class multina-tional firm” during the nextdecade.

Reliance and Wanda eye India tie­upREAL ESTATE

Anil Ambani groupin property talks

Chinese developerexpanding overseas

The scorching growth ofthe luxury sector might becooling off a touch, butyou wouldn’t know it bytalking to François-HenriPinault, chief executive ofthe French luxury andsports lifestyle group PPR.

Sitting in a glass-panelled conference roomin his North Americanheadquarters inManhattan, he appearsimmensely relaxed abouthis decision to buy Qeelin,the Chinese jewellery

brand, earlier this week.Perhaps one day a Qeelin

signature jewelled pandawill sit alongside the brandrelics – a Puma shoe wornby Usain Bolt, a BottegaVeneta coffee table book –which are carefully dottedaround the office.

“Opportunities don’tparticularly come at theideal moment, but youhave to seize them,” saysMr Pinault.

“My very deep convictionis luxury is enormouslyprofitable if managedproperly. In the last 10years it has exploded fromthree regions – the UnitedStates, Europe and Japan –

with 800m consumers. WithChina, India, Indonesia,Brazil and Mexico thereare 3bn potential newconsumers in the next 50years.”

Mr Pinault says theQeelin acquisition is partof an accelerated attemptto “reinforce” PPR’sportfolio of luxury brandsand to expand further itsshare of the market –particularly in China.

But the deal comes amida significant slowdown inluxury sales. A recentreport from Bain & Co andItalian luxury consortiumAltagamma said the luxurymarket would grow by just5 per cent at constantexchange rates in 2012,compared with 13 per centin 2011. McKinseyestimates the Chineseluxury market will grow at12 to 16 per cent over thenext three years, comparedwith about 20 per cent inthe past four years.

Qeelin has 14 storesworldwide, 11 of them inGreater China. “The firstpriority is the domesticmarket,” says Mr Pinault,who dismisses the ideathat the slowdown inChinese luxuryconsumption – which heattributes to internalpolitical change as opposedto luxury overexposure – isa significant problem forthe industry.

“This is completelyschizophrenic,” he says. “Ifthe US grew at 5 per centa year we would becelebrating. There wouldbe no more fiscal cliff. ButChina slows to 7 per centand it is a disaster? No. Ihave no worries at allabout its potential fordevelopment over the longterm.”

Consumers in China arecongregating at the high-end faster than in anyother market, he notes:“Gucci sells more high-end

products in China thanany other country in theworld. No one guessed howbig this industry would be.It is building in front ofus.”

Last year’s acquisition ofBrioni, the Italianmenswear brand, markedthe beginning of PPR’scurrent acquisition spree.

Since then, the companyhas been actively looking

at brands outside westernEurope and the US, whichdemonstrate the samecommitment tocraftsmanship and“origins” as its otherlabels, says Mr Pinault.

Meanwhile, PPR ispressing ahead with astrategy of shedding itsretail brands, Redcats andFnac, in order to redefineitself as a pure luxury andlifestyle group. It is bettingthe house on its luxurylabels – Gucci, BottegaVeneta, Yves SaintLaurent, Stella McCartney,Alexander McQueen,Brioni, Sergio Rossi, GirardPerregaux and Boucheron– and its sports brands –Puma, Volcom and Tretorn

According to Mr Pinault,PPR will manage theremaining brandsaccording to three coreprinciples.

First, give completecontrol of each brand’simage and product to thedesigner.

Second, be very clear oneach brand’s positioning

vis a vis the others in thegroup. At one point in theinterview, Mr Pinault grabsa pen and pad and quicklysketches out a chartdividing the group’s brandsinto three areas: ready-to-wear, leather goods andhard luxury. He thencategorises them accordingto three different pricepoints: €500, €900 and€1,200.

Finally, maintain thecorrect balance betweenwholesale and retail.

“The biggest mistake youcan make is being tooaggressive about openinglots of stores before youhave the right product tofill them,” says Mr Pinault.

He admits PPR madethat mistake in 2000 withYves Saint Laurent, whichdid not break even until2009. Now the companyopens a full retail chainwhen a brand makes“approximately €150m insales”.

For the most part,investors have reactedpositively to Mr Pinault’s

strategy, with the shareprice rising about a thirdover the past six months.In the third quarter,revenue was up 7 per centto €2.6bn.

Some parts of thebusiness are not doing aswell as others, however.While the luxury segmentreported a 12 per centincrease in revenue in thethird quarter, the sportsdivision increased revenuesby just 2 per cent.

Last week, the chiefexecutive of Puma, PPR’sGerman sportswear brand,left the business “bymutual consent” amidslower sales growth and adifficult year. Mr Pinaultnotes the company is inthe middle of a turnroundat the business, due to becompleted in 2014.

Discounting the troublesat Puma, Mr Pinault isadamant that theattraction of high-endfashion will endure.“Luxury has a nearuniversal attraction,” hesays.

PPR bets onrich pickingswith luxuryacquisitionsInterviewFrançois­HenriPinaultPPR chief executive

Deals show faith insector despite salesslowdown, writesVanessa Friedman

Searching fora fresh brandPPR is considering usingcash from the sale of itsretail assets for moreluxury “reinforcements”,says chief executiveFrançois­Henri Pinault,writes Vanessa Friedman.

That suggests theacquisition of Qeelin maynot be the company’s lastpurchase.

“We have been talkingabout investing in a newluxury name,” says MrPinault. “We have no moreyoung brands sinceAlexander McQueen andStella McCartney have allpassed the €100m mark.”

If PPR were to launch anew house, it would markthe first start­up by aleading group since, in itsearlier incarnation asGucci, the companybought AlexanderMcQueen and started ajoint venture with StellaMcCartney in 2000.

Rival LVMH has notlaunched a new brandsince Christian Lacroix’shouse in 1987, which wassold in 2005 to the Falicgroup.

PPR’s last acquisition inthe luxury ready­to­wearspace was Brioni in 2011.The company has said itis interested in “medium­sized, or €50m­€150m”luxury brands tocomplement its portfoliobut this is the first timethat Mr Pinault hassuggested that it mightconsider building a newhouse. PPR meets twice ayear to review new namesand discuss potentialdesigners. AlexanderWang, for example, wasfirst pinpointed as aperson of interest at sucha meeting.

During the hunt for anew creative director forBalenciaga, rumourssurfaced that Britishdesigner Christopher Kanemight be PPR’s next newinvestment. Mr Pinaultdeclines to comment onthe possibility, other thanto say that PPR’s strategywhen buying a brand isfirst to pinpoint an areawhere the group is under­represented, such asmenswear or jewellery,and then identify a brandthat exists in that spaceand can grow.

The company will notbuy a promising brand andtry to move it into anothersector, he says.

By Jonathan Soble in Tokyoand Tim Bradshawin San Francisco

Apple iPhone users whohave been led astray bytheir devices’ widelypanned map software wereable to download arefreshed Google Mapsapplication from yesterday,after Google released anapp for Apple machines.

Widespread complaintsabout Apple’s map softwareled the company to issue arare apology after itsrelease in September. Soonafter, Tim Cook made hisfirst substantial changes toApple’s executive teamsince becoming chief execu-tive last year, a reshufflepartly precipitated by themaps debacle.

In a blogpost announcingthe launch on iPhone, Dan-iel Graf, director of GoogleMaps for Mobile, needledApple’s shortcomings.

“At the heart of this appis our constantly improvingmap of the world thatincludes detailed informa-tion for more than 80mbusinesses and points ofinterest,” he wrote.

In the latest problem forApple’s map service, Aus-tralian police in Victoriathis week warned motoristsnot to rely on the app afterit led a number of “dis-tressed motorists” to aremote national parkinstead of a city 70kmaway.

Apple had bundled themore seasoned GoogleMaps app with iPhones andiPads since the devices’ ini-tial introduction. But itreplaced the service with its

own software on the latestversion of its iOS operatingsystem, which debuted withthe launch of the iPhone 5.

In a recent interview, MrCook denied that the oust-ing of Google Maps fromiOS 6 was a strategic moveagainst a company which,through Android, hasbecome its main rival insmartphone software.

He told Bloomberg Busi-ness Week that Apple “hada list of things that wethought would be a greatcustomer experience, andwe couldn’t do it any otherway than to do it our-selves”.

But Mr Cook admittedthat Apple Maps “didn’tlive up to our expecta-tions”, adding: “We screwedup.”

Google executives hadbeen coy about whetherthey would make GoogleMaps available as a sepa-rately downloadable app foriPhones and iPads in theApple Store. Some analystshad questioned whetherApple would allow a com-peting app into its tightlycontrolled App Store fromits arch-rival.

Yet it appears that GoogleMaps was approved byApple without delay.

Some staff in Apple’s ownretail stores have even beenheard to flag the forthcom-ing Google app to hesitantiPhone customers, in recog-nition of the central rolethat navigation has come toplay in consumers’ smart-phone choices.

The original Google Mapsapp for iPhone had beendesigned by Apple. Googlesaid its new app featured arefreshed user interface and2D and 3D “tilting” views –also a feature of Apple’ssoftware.

Googlemap appback onApple’siPhoneSOFTWARE

PPR

Source: Thomson Reuters Datastream

Share price (€)

Jan Dec2012105

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‘Opportunities don’tparticularly come atthe ideal moment,but you have toseize them’

François­Henri Pinault is adamant that the attraction of high­end fashion will endure Bloomberg

iPhone users were led astrayby Apple’s map software

‘Apple Maps didn’tlive up to ourexpectations . . .We screwed up’

Tim CookApple chief executive

More news atFT.com●France Telecom andVivendi’s SFR finedFrance Telecom andVivendi’s SFR have beenfined a combined €183mfor distorting competitionin the French mobilephone market, in thelatest evidence of thefierce battle for survivalunder way between thecountry’s biggestoperators. France’s twobiggest telecomscompanies said they wouldappeal against the rulingdelivered by the Frenchcompetition authority,which relates to acomplaint brought byBouygues Telecom – thecountry’s third operator –going back to the periodbetween 2005 and 2008.

●Ryanair loses appealover Aer Lingus caseA UK probe into Ryanair’sshareholding in Aer Lingushas been given the go­ahead after the low­costcarrier lost an appeal thatthe inquiry undermined aEuropean Commissionprobe of its bid for theIrish flag carrier. The UKCompetition Commissionhas won the right topursue its investigationinto whether Ryanairwields undue influenceover Aer Lingus, in whichit holds a 29.8 per centstake.

Contracts & Tenders Legal Notices

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FT BUSINESS.........................................................Classified Business AdvertisingUK: +44 20 7873 4909Email: ruth.duffy@ft.com

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DECEMBER 14 2012 Section:Companies Time: 13/12/2012 - 18:30 User: hyltonm Page Name: CONEWS4, Part,Page,Edition: EUR, 18, 1

FINANCIAL TIMES FRIDAY DECEMBER 14 2012 ★ 19

Full fund performance data atwww.ft.com/fundsMARKETS | MANAGED FUNDS SERVICE

20 ★ FINANCIAL TIMES FRIDAY DECEMBER 14 2012

Fund Bid Offer D+/- Yield

Impax Asset Management (IRL)Norfolk House, 31 St James's Square, London, SW1Y 4JRFSA Recognised

Env Mkts (Ire) Stl A £ 1.66 - 0.00 0.00

Env Mkts (Ire) Stl B £ 1.59 - 0.00 0.00

Env Mkts (Ire) Euro A € 1.41 - 0.00 0.00

Env Mkts (Ire) Euro B € 1.10 - 0.00 0.00

Env Mkts (Ire) USD A $ 1.40 - 0.01 0.00

Env Mkts (Ire) USD B $ 1.23 - 0.01 0.00

Asian Env Mkts (Ire) Stl B £ 0.75 - 0.00 0.00

INDIA VALUE INVESTMENTS LIMITED (INVIL)www.invil.mu

Other International Funds

NAV £ 4.53 - 0.01 0.00

Intrinsic Value Investors (IVI) LLP (IRL)1 Hat & Mitre Court, 88 St John Street, London EC1M 4EL +44 (0)20 7566 1210FSA Recognised

IVI European Fund EUR € 12.89 - 0.01 0.00

IVI European Fund GBP £ 14.45 - 0.07 0.00

Invesco (LUX)Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282FSA Recognised

Invesco Management SA

Invesco Asia Balanced A dist $ 15.87 - 0.01 4.49

Invesco Asia Consumer Demand Fund A income $ 12.36 - 0.07 0.35

Invesco Asia Infrastructure (A) $ 13.51 - 0.00 1.17

Invesco Asia Opportunities Equity A $ 94.74 - 0.25 0.00

Invesco Absolute Return Bond Fund A € 2.81 - 0.00 0.00

Invesco Balanced Risk Allocation Fund A € 14.28 - -0.05 0.00

Invesco Capital Shield 90 (EUR) A € 11.57 - -0.02 0.00

Invesco Emerging Europe Equity Fund A $ 10.88 - 0.00 0.00

Invesco Emerging Local Currencies Debt A Inc $ 11.14 - 0.02 5.32

Invesco Emerging Mkt Quant.Eq. A $ 11.99 - 0.04 0.00

Invesco Energy A $ 23.65 - 0.04 0.00

Invesco Euro Corporate Bond Fund (A) € 15.32 - -0.03 0.00

Invesco Euro Inflation Linked Bond A € 15.33 - 0.05 0.00

Invesco Euro Reserve A € 322.63 - 0.00 0.00

Invesco European Bond A € 5.88 - 0.00 0.00

Invesco European Growth Equity A € 17.13 - -0.07 0.00

Invesco Global Absolute Return Fund A Class € 10.69 - 0.00 0.00

Invesco Global Bond A Inc $ 5.71 - 0.00 1.65

Invesco Global Equity Income Fund A $ 46.39 - 0.04 0.00

Invesco Global Inc Real Estate Sec A dist $ 9.03 - 0.00 3.13

Invesco Global Inv Grd Corp Bond A Dist $ 11.38 - -0.01 2.96

Invesco Global Leisure A $ 22.08 - 0.03 0.00

Invesco Global Smaller Comp Eq Fd A $ 38.19 - 0.05 0.00

Invesco Global Structured Equity A $ 32.30 - -0.14 0.99

Invesco Global Total Ret.(EUR) Bond Fund A € 12.05 - 0.01 0.00

Invesco Gold & Precious Metals A $ 9.34 - 0.18 0.00

Invesco Greater China Equity A $ 35.86 - 0.12 0.00

Invesco India Equity A $ 37.84 - -0.37 0.00

Invesco Japanese Equity Adv Fd A ¥ 1974.00 - 14.00 0.00

Invesco Japanese Value Eq Fd A ¥ 653.00 - 9.00 0.00

Invesco Latin American Equity A $ 10.52 - 0.02 0.00

Invesco Nippon Small/Mid Cap Equity A ¥ 511.00 - 4.00 0.00

Invesco Pan European Equity A EUR Cap NAV € 12.79 - -0.04 0.00

Invesco Pan European High Income Fd A € 11.88 - 0.02 4.61

Invesco Pan European Small Cap Equity A € 13.35 - -0.03 0.00

Invesco Pan European Structured Equity A € 11.03 - -0.05 0.00

Invesco UK Investment Grade Bond A £ 0.95 - 0.00 3.10

Invesco US Structured Equity A $ 15.45 - 0.04 0.00

Invesco US Value Eq Fd A $ 23.11 - 0.05 0.00

Invesco USD Reserve A $ 87.02 - 0.00 0.00

Invesco Global Asset Management Ltd (IRL)Dublin 00 353 1 439 8100 Hong Kong 00 852 2842 7200FSA Recognised

Invesco Stlg Bd A QD F £ 2.54 - 0.00 4.79

Invesco Asian Equity A $ 5.84 - 0.03 0.36

Invesco ASEAN Equity A $ 103.65 - 0.02 0.33

Invesco Bond A $ 29.51 - -0.09 1.92

Invesco Continental Eurp Small Cap Eqty A $ 133.07 - 0.17 0.44

Invesco Emerging Markets Equity A $ 37.33 - 0.07 0.00

Invesco Emerging Markets Bond A $ 23.23 - -0.02 4.63

Invesco Continental European Equity A € 5.30 - 0.00 1.18

Invesco Gilt A £ 14.24 - 0.05 2.57

Invesco Global Small Cap Equity A NAV $ 91.36 - 0.17 0.00

Invesco Global High Income A NAV $ 13.71 - 0.01 5.41

Invesco Gbl R/Est Secs A GBP F F £ 6.50 - 0.02 1.05

Invesco Global Health Care A $ 80.43 - -0.21 0.00

Invesco Global Select Equity A $ 10.94 - -0.01 0.00

Invesco Jap Eqty Core A $ 1.29 - 0.03 0.30

Invesco Japanese Equity A $ 14.43 - 0.10 0.00

Invesco Korean Equity A $ 23.25 - 0.33 0.00

Invesco PRC Equity A $ 45.34 - -0.13 0.00

Invesco Pacific Equity A $ 38.49 - 0.57 0.37

Invesco Global Technology A $ 11.08 - -0.06 0.00

Invesco UK Eqty A £ 6.00 - -0.02 1.74

Invest ADClient services: +971 2 692 6101 clientservices@InvestAD.com

Other International Funds

Invest AD - Iraq Opportunity Fund $ 93.53 - 5.01 0.00

Invest AD - UAE Total Return Fund *AED 71.22 - 0.07 0.00

Invest AD - Emerging Africa Fund $ 1047.59 - 10.86 -

Invest AD - GCC Focus Fund $ 1014.21 - 1.59 -

Investec Asset Management Ireland Ltd (IRL)JP Morgan Admin Svs Ire Ltd, JP Morgan Hse, IFSC Dub 1 00 353 1 612 3363FSA Recognised

Investec Liquidity Funds Plc

Euro Liquidity A Acc EUR * € 11.90 - 0.00 -

Euro Liquidity I Inc EUR * € 1.00 - 0.00 0.01

Short Dated Bd A Acc GBP * £ 13.06 - 0.00 -

Short Dated Bd I Acc GBP * £ 13.96 - 0.00 -

Sterling Liquidity A Acc GBP * £ 13.17 - 0.00 -

Sterling Liquidity I Inc GBP * £ 1.00 - 0.00 0.29

US$ Liquidity A Acc USD * $ 11.96 - 0.00 -

US$ Liquidity I Inc USD * $ 1.00 - 0.00 0.16

Investec Global Strategy Fund (LUX)49 Avenue JF KennedyL-1855 Luxembourg Enquiries 020 7597 1800FSA Recognised

Investec Global Strategy Fund

Africa Opps A Acc USD $ 19.37 - 0.26 0.42

American Equity A Acc USD $ 15.86 - 0.00 0.00

American Equity A Inc USD $ 74.18 - 0.00 0.00

Asia Pacific Eq. A Acc USD $ 26.15 - 0.09 0.76

Asia Pacific Eq. A Inc USD $ 25.87 - 0.08 0.81

Asian Equity A Acc USD $ 20.03 - 0.06 0.41

Asian Equity A Inc USD $ 29.38 - 0.09 0.37

Continental European Equity A Inc USD $ 364.92 - 2.37 0.80

Continental European Equity A Acc USD $ 15.26 - 0.10 0.78

EAFE A Inc USD $ 15.60 - 0.02 0.38

Emrg Mkts Blended Debt A Acc USD $ 22.92 - 0.04 4.91

Emrg Mkts Blended Debt A Inc USD $ 20.76 - 0.04 4.91

Emrg Mkts Corp Debt A Acc USD $ 22.50 - 0.00 3.06

Emrg Mkts Corp Debt A Inc USD $ 20.45 - 0.00 -

Emrg Mkts Curr A Acc USD $ 20.21 - 0.04 2.74

Emrg Mkts Curr Alpha A Acc USD $ 19.30 - -0.01 0.00

Emrg Mkts Equity A Acc USD $ 17.90 - 0.11 0.00

Emrg Mkts Hard Curr Debt A Inc USD $ 23.28 - 0.00 2.66

Emrg Mkts Local Curr Debt A Acc USD $ 28.91 - 0.11 6.33

Emrg Mkts Local Curr Debt A Inc USD $ 20.60 - 0.08 6.33

Emrg Mkts Local Curr Dyn Debt A Acc USD $ 21.95 - -0.02 5.80

Emrg Mkts Local Curr Dyn Debt A Inc USD $ 19.75 - -0.02 5.86

Emerging Markets Multi-Asset A Acc USD $ 22.04 - 0.07 -

Emerging Markets Multi-Asset A Inc USD $ 21.87 - 0.07 -

Enhanced Gbl Energy A Acc USD $ 16.35 - 0.07 0.00

Enhanced Nat Resources A Acc USD $ 19.32 - 0.10 0.00

Euro Money A Acc EUR € 69.02 - 0.00 0.00

Euro Money A Inc EUR € 26.10 - 0.00 0.00

Global Bond A Acc USD $ 101.15 - -0.03 1.33

Global Bond A Inc USD $ 46.09 - -0.02 1.34

Global Contrarian Equity A Acc USD $ 22.10 22.10 0.01 0.00

Global Dynamic A Acc USD $ 102.46 - -0.03 0.00

Global Dynamic A Inc USD $ 101.69 - -0.03 0.00

Global Energy A Acc USD $ 17.22 - 0.10 0.27

Fund Bid Offer D+/- Yield

Global Energy A Inc USD $ 302.43 - 1.77 0.19

Global Energy Long Short A Acc USD $ 16.81 - 0.06 0.00

Global Equity A Acc USD $ 232.95 - 0.16 0.00

Global Equity A Inc USD $ 230.99 - 0.15 0.00

Global Franchise A Acc USD $ 32.36 - -0.02 0.67

Global Franchise A Inc USD $ 32.00 - -0.02 0.69

Global Gold A Acc USD $ 21.82 - 0.38 0.00

Global Gold A Inc USD $ 78.64 - 1.39 0.00

Global Natural Resources A Acc USD $ 10.34 - 0.06 0.00

Global Natural Resources A Inc USD $ 10.34 - 0.06 0.00

Global Opp Equity A Inc USD $ 24.80 - -0.01 0.20

Global Strat Equity A Acc USD $ 16.39 - 0.03 0.00

Global Strat Equity A Inc USD $ 89.14 - 0.14 0.00

Global Strategic Inc A Acc USD $ 26.47 - 0.01 3.89

Global Strategic Inc A Inc USD $ 21.18 - 0.01 3.89

Global Strat Managed A Acc USD $ 97.95 - 0.11 0.15

Global Strat Managed A Inc USD $ 42.89 - 0.05 0.16

High Income Bond A Acc GBP Hdg £ 70.14 - 0.08 6.74

High Income Bond A Inc GBP Hdg £ 17.71 - 0.02 6.74

Inv Grade Corp Bond A Acc USD $ 21.12 - -0.02 4.05

Inv Grade Corp Bond A Inc USD $ 30.02 - -0.03 4.05

Latin Amer.Corp.Debt A Acc USD $ 25.32 - 0.02 5.93

Latin Amer.Corp.Debt A Inc USD $ 20.18 - 0.02 5.99

Latin Amer.Eq. A Acc USD $ 21.05 - 0.08 0.73

Latin Amer.Sm Cos A Acc USD $ 25.12 - 0.03 -

Managed Currency A Acc USD $ 130.57 - 0.20 0.00

Managed Currency A Inc USD $ 35.23 - 0.06 0.00

Sterling Money A Acc GBP £ 56.43 - 0.00 0.05

Sterling Money A Inc GBP £ 9.96 - 0.00 0.05

UK Equity A Acc GBP £ 11.11 - 0.06 1.35

UK Equity A Inc GBP £ 61.98 - 0.31 1.37

US Dollar Money A Acc USD $ 65.62 - 0.00 0.01

US Dollar Money A Inc USD $ 20.06 - 0.00 0.01

Investec Asset Mgmt (Guernsey) Ltd (GSY)Regulated

Investec Expert Investment Funds PCC Limited

Global Commodities & Resources A USD $ 29.27 - 0.16 -

Investec Professional Funds PCC Ltd

Global Diversified Growth I USD $ 21.25 - 0.10 -

Global Diversified Growth A USD $ 29.36 - 0.13 -

Investec Premier Funds PCC Ltd

Africa A USD $ 20.76 21.85 -1.09 -

Pan Africa A USD $ 28.15 29.64 -1.05 -

JPMorgan Asset Mgmt (1200)F (UK)Finsbury Dials, 20 Finsbury Street, London EC2Y 9AQBrokerline: 0800 727 770, Clients: 0800 20 40 20Authorised Inv Funds

JPM Retail OEIC (A class unless stated)

Diversified Real Ret Acc 51.18 - 0.02 -

Diversified Real Ret Inc 51.10 - 0.02 -

JPMorgan Asset Management (Europe) S.a.r.l (LUX)6 Route de Trèves L-2633 Senningerberg LuxembourgTel (352) 34 10 1 (Other funds)Fax (352) 34 10 8000 (Others funds)www.jpmorgan.com/assetmanagementFSA Recognised

Equity US

JF America Eq A (dist)-USD (1) F $ 50.41 - 0.20 -

JF US Smaller Co.A (dist)-USD (1) $ 17.02 - 0.06 -

JF US Value A (dist)-USD (1) $ 14.42 - 0.05 -

JPM Am Eq A (acc)-USD (1) F $ 12.38 - 0.05 -

JPM Am Eq A (dist)-USD (1) $ 93.95 - 0.36 -

JPM Am Eq A (acc)-EUR Hdg (1) F € 7.58 - 0.03 -

JPM Am L Cap A (acc)-EUR (1) F € 11.73 - 0.00 -

JPM Am L Cap A (acc)-USD (1) F $ 12.95 - 0.03 -

JPM Am L Cap A (dist)-USD (1) F $ 11.51 - 0.03 -

JPM US Smaller Co.A (acc)-USD (1) F $ 11.42 - 0.04 -

JPM US Smaller Co.A (dist)-USD (1) $ 116.09 - 0.37 -

JPM H US STEEP A (acc)-EUR (1) F € 9.79 - -0.01 -

JPM H US STEEP A (dist)-GBP (1) F £ 12.20 - 0.00 -

JPM US Value A (acc)-EUR Hdg (1) F € 7.93 - 0.03 -

JPM H US STEEP A (inc)-EUR (1) F € 9.64 - -0.02 -

JPM H US STEEP A (acc)-USD (1) F $ 12.76 - 0.02 -

JPM US Dyn A (acc)-EUR (1) € 7.06 - -0.01 -

JPM US Dyn A (acc)-USD (1) F $ 11.02 - 0.01 -

JPM US Dyn A (dist)-USD (1) $ 15.19 - 0.02 -

JPM US Growth A (acc)-EUR Hdg (1) F € 7.56 - 0.00 -

JPM US Growth A (acc)-USD (1) F $ 13.14 - 0.00 -

JPM US Growth A (dist)-GBP (1) F £ 6.26 - -0.01 -

JPM US Growth A (dist)-USD (1) F $ 7.04 - 0.01 -

JPM US Select 130/30 A (acc)-EUR Hdg (1) F € 7.50 - 0.01 -

JPM US Select 130/30 A (acc)-USD (1) F $ 10.70 - 0.02 -

JPM US Select 130/30 A (dist)-GBP (1) F £ 7.03 - 0.01 -

JPM US Select 130/30 A (dist)-USD (1) F $ 10.88 - 0.02 -

JPM US Sm Cap Grth A (acc)-EUR (1) F € 72.29 - 0.09 -

JPM US Sm Cap Grth A (dist)-GBP (1) F £ 9.63 - 0.03 -

JPM US Sm Cap Grth A (acc)-USD (1) F $ 14.83 - 0.06 -

JPM US Sm Cap Grth A (dist)-USD (1) $ 102.08 - 0.40 -

JPM US Value A (dist)-GBP (1) F £ 14.64 - 0.03 -

JPM US Value A (acc)-USD (1) F $ 13.22 - 0.04 -

JPM US Value A (dist)-USD (1) F $ 16.50 - 0.06 -

JPM US Dyn 130/30 A (acc)-EUR Hdg (1) € 7.30 - 0.01 -

JPM US DYN 130/30 A (acc)-USD (1) F $ 10.42 - 0.02 -

JPM US DYN 130/30 A (dist)-GBP (1) F £ 8.15 - 0.00 -

JPM US DYN 130/30 A (dist)-USD (1) F $ 129.12 - 0.21 -

Equity Asia

JF ASEAN Equity A (acc)-SGD (1) F S$ 17.25 - 0.18 -

JF Asia Al+ A (acc)-USD (1) $ 21.48 - 0.10 -

JF Asia P ExJapEq A (dist)-GBP (1) F £ 17.80 - 0.08 -

JF Asia P ExJapEq A (acc)-USD (1) F $ 18.76 - 0.10 -

JF Asia P ExJapEq A (dist)-USD (1) $ 47.37 - 0.27 -

JF Asia P ExJapEq A (acc)-SGD (1) F S$ 12.93 - 0.07 -

JF China A (acc)-USD (1) F $ 26.47 - 0.28 -

JF China A (acc)-SGD (1) F S$ 10.80 - 0.11 -

JF China A (dist)-HKD (1) F HK$ 9.93 - 0.10 -

JF China A (dist)-USD (1) $ 42.73 - 0.44 -

JF Greater China A (acc)-SGD (1) F S$ 13.75 - 0.16 -

JF Greater China A (acc)-USD (1) F $ 22.35 - 0.27 -

JF Greater China A (dist)-HKD (1) FHK$ 11.75 - 0.14 -

JF Greater China A (dist)-USD (1) F $ 27.63 - 0.33 -

JF Hong Kong A (acc)-USD (1) F $ 18.14 - 0.18 -

JF Hong Kong A (dist)-HKD (1) F HK$ 10.69 - 0.10 -

JF Hong Kong A (dist)-USD (1) F $ 47.04 - 0.46 -

JF India A (acc)-SGD (1) F S$ 13.18 - -0.03 -

JF India A (acc)-USD (1) F $ 24.39 - -0.07 -

JF India A (dist)-GBP £ 72.79 - -0.27 -

JF India A (dist)-USD (1) $ 71.76 - -0.18 -

JF Korea Eq A (acc)-USD (1) F $ 10.28 - 0.08 -

JF Korea Eq A (acc)-EUR (1) F € 7.89 - 0.04 -

JF Korea Eq A (dist)-USD (1) F $ 10.70 - 0.08 -

JF Singapore A (acc)-SGD (1) F S$ 16.73 - 0.13 -

JF Japan Eq A (acc)-EUR (1) F € 4.66 - -0.02 -

JF Japan Eq A (dist)-GBP (1) F £ 5.76 - -0.02 -

JF Japan Eq A (acc)-JPY (1) ¥ 451.00 - 2.00 -

JF Japan Eq A (acc)-USD (1) F $ 7.26 - 0.00 -

JF Japan Eq A (dist)-USD (1) $ 18.28 - -0.02 -

JF Japan Sm Cap A (acc)-USD (1) F $ 6.71 - -0.02 -

JF Japan Sm Cap A (dist)-USD (1) $ 6.39 - -0.02 -

JF Pacific Eq A (acc)-EUR (1) F € 9.26 - 0.02 -

JF Pacific Eq A (dist)-GBP (1) F £ 12.57 - 0.05 -

JF Pacific Eq A (acc)-USD (1) $ 13.55 - 0.07 -

JF Pacific Eq A (dist)-USD (1) $ 63.23 - 0.33 -

JF Singapore A (acc)-USD (1) F $ 27.90 - 0.21 -

JF Singapore A (dist)-USD (1) F $ 35.46 - 0.27 -

JF Taiwan A (acc)-EUR (1) F € 15.55 - 0.18 -

JF Taiwan A (acc)-USD (1) F $ 16.06 - 0.23 -

JF Taiwan A (dist) HKD (1) F HK$ 12.12 - 0.18 -

JF Taiwan A (dist)-USD (1) F $ 13.65 - 0.20 -

JPM Japan 50 Eq A (acc)-EUR (hdg) (2) F € 74.65 - 0.76 -

Equity Emerging Markets

JPM Brazil Equity A (acc)-USD (1) F $ 9.26 - 0.03 -

JPM Brazil Equity A (acc)-SGD (1) F S$ 10.84 - 0.03 -

JPM Brazil Equity A (acc)-EUR (1) F € 61.45 - 0.01 -

JPM Brazil Equity A (dist)-USD (1) F $ 8.82 - 0.03 -

JF Eastern Europe Eq A (dist)-EUR (1) F € 29.98 - 0.08 -

JF Latin Am Eq A (dist)-USD (1) F $ 41.84 - 0.09 -

JPM Eastern Europe Eq A (acc)-EUR (1) F € 18.67 - 0.05 -

JPM Eastern Europe Eq A (acc)-USD (1) F $ 122.85 - 0.66 -

JPM Eastern Europe Eq A (dist)-EUR (1) € 44.81 - 0.11 -

JPM Em Eur MEA Eq A (acc)-EUR (1) F € 17.03 - 0.03 -

JPM Em Eur MEA Eq A (acc)-USD (1) F $ 20.67 - 0.09 -

JPM Em Eur MEA Eq A (dist)-USD (1) F $ 57.50 - 0.24 -

JPM Em Eur MEA Afr Eq A (acc)-SGD (1) F S$ 13.24 - 0.05 -

JPM Em MEA Eq A (acc)-SGD (1) F * S$ 12.73 - 0.01 -

JPM Em Mkt Alpha Pl A (dist)-GBP (1) F £ 7.19 - 0.03 -

JPM Em Mkt Alpha Pl A (acc)-USD (1) F $ 15.70 - 0.08 -

JPM Em Mkt Alpha Pl A (dist)-USD (1) F $ 15.19 - 0.07 -

JPM Em Mkt Eq A (dist)-GBP (1) F £ 32.59 - 0.00 -

JPM Em Mkt Eq A (acc)-EUR (1) F € 13.76 - -0.02 -

JPM Em Mkt Eq A (acc)-USD (1) F $ 22.49 - 0.02 -

Fund Bid Offer D+/- Yield

JPM Em Mkt Eq A (dist)-USD (1) $ 31.38 - 0.04 -

JPM Em Mkt Infra Eq A (acc)-EUR (1) F € 15.08 - 0.00 -

JPM Em Mkt Infra Eq A (acc)-USD (1) F $ 7.85 - 0.02 -

JPM Em Mkts Ccy Alpha A (acc)-EUR (1) F € 9.91 - 0.02 -

JPM Em Mkts Lcl Cur Dbt A (dist)-EUR(1) F € 104.21 - -0.25 -

JPM Em Mkts Loc Ccy Debt A (div)-EUR € 104.80 - -0.25 -

JPM Em Mkts Loc Ccy Debt A (dist)-GBP (1) F £ 83.73 - -0.07 -

JPM Em Mkts Loc Ccy Debt A (mth)-USD (1) F $ 15.56 - 0.06 -

JPM Em Mkts Eq A (acc)-SGD (1) F S$ 13.72 - 0.02 -

JPM Em Mkt Sm Cap A (acc)-EUR (1) F € 8.08 - -0.01 -

JPM Em Mkt Sm Cap A (dist)-GBP (1) F £ 5.95 - 0.01 -

JPM Em Mkt Sm Cap A (acc)-USD (1) F $ 10.51 - 0.02 -

JPM Latin Am Eq A (acc)-USD (1) F $ 31.32 - 0.08 -

JPM Latin Am Eq A (dist)-USD (1) $ 57.84 - 0.14 -

JPM Latin Am Eq A (acc)-SGD (1) F S$ 13.05 - 0.03 -

JPM Russia A (acc)-USD (1) F $ 12.20 - 0.08 -

JPM Russia A (dist)-USD (1) F $ 11.84 - 0.07 -

JPM Turkey Eq A (dist)-EUR (1) € 21.84 - 0.01 -

Equity Europe

JF Euroland Eq A (dist)-USD (1) F $ 7.35 - 0.03 -

JF Europe Dynamic A (dist)-EUR (1) € 14.69 - 0.00 -

JF Europe Eq A (dist)-USD (1) F $ 35.44 - 0.10 -

JF Europe Sm Cap A (dist)-EUR (1) F € 10.87 - 0.01 -

JF Germany Eq A (dist)-EUR (1) F € 21.37 - 0.04 -

JPM Euroland Eq A (acc)-EUR (1) F € 10.18 - 0.01 -

JPM Euroland Eq A (dist)-EUR (1) € 31.51 - 0.04 -

JPM Euroland Eq A (inc)-EUR (1) F € 5.60 - 0.01 -

JPM Europe Dyn A (dist)-EUR (1) F € 12.85 - 0.00 -

JPM Europe Dyn A (acc)-EUR (1) F € 14.18 - 0.00 -

JPM Europe Dyn A (dist)-GBP (1) F £ 15.77 - 0.03 -

JPM Europe Dyn Mega Cap A (acc)-EUR (1) € 10.13 - 0.02 -

JPM Europe Dyn Mega Cap A (acc)-USD (1) F $ 10.12 - 0.04 -

JPM Europe Dyn Mega Cap A (inc)-EUR (1) F € 7.93 - 0.01 -

JPM Europe Dyn Mega Cap A (dist)-EUR (1) F € 7.65 - 0.01 -

JPM Europe Dyn Sm Cap A (dist)-EUR (1) F € 11.50 - 0.01 -

JPM Europe Dyn Sm Cap A (acc)-EUR (1) € 19.83 - 0.02 -

JPM Europe Eq A (acc)-EUR (1) F € 10.92 - 0.00 -

JPM Europe Eq A (dist)-EUR (1) € 33.29 - -0.01 -

JPM Europe Eq A (cap)-USD (1) F $ 13.64 - 0.04 -

JPM Europe Focus A (acc)-EUR (1) F € 9.86 - 0.02 -

JPM Europe Focus A (acc)-USD (1) F $ 11.86 - 0.04 -

JPM Europe Focus A (dist)-EUR (1) F € 8.26 - 0.02 -

JPM Europe Micro Cap A (acc)-EUR (1) F € 11.30 - 0.05 -

JPM Europe Micro Cap A (dist)-EUR (1) F € 11.04 - 0.05 -

JPM Europe 130/30 A (acc)-EUR (1) F € 9.45 - -0.02 -

JPM Europe 130/30 A (acc)-USD (1) F $ 13.45 - 0.02 -

JPM Europe Sel 130/30 A (acc)-EUR (1) F € 8.05 - 0.01 -

JPM Europe Sel 130/30 A (acc)-USD (1) F $ 11.77 - 0.04 -

JPM Europe Sel 130/30 A (dist)-EUR (1) F € 10.69 - 0.00 -

JPM Europe Sel 130/30 A (dist)-GBP (1) F £ 5.88 - 0.01 -

JPM Europe Sm Cap A (acc)-EUR (1) F € 13.37 - 0.00 -

JPM Europe Sm Cap A (dist)-EUR (1) € 36.59 - 0.02 -

JPM Europe Sm Cap A (dist)-GBP (1) F £ 14.65 - 0.03 -

JPM Europe Strat Grth A (acc)-EUR (1) F € 13.58 - -0.03 -

JPM Europe Strat Grth A (dist)-EUR (1) F € 8.44 - -0.01 -

JPM Europe Strat Grth A (dist)-GBP (1) F £ 12.44 - -0.01 -

JPM Europe Strat Val A (dist)-EUR (1) F € 11.05 - 0.03 -

JPM Europe Strat Val A (acc)-EUR (1) F € 9.98 - 0.03 -

JPM Europe Strat Val A (dist)-GBP (1) F £ 13.63 - 0.06 -

JPM Europe 130/30 A (dist)-EUR (1) F € 8.64 - -0.01 -

JPM Europe 130/30 A (dist)-GBP (1) F £ 6.98 - 0.00 -

JPM Germany Eq A (dist)-EUR (1) F € 8.60 - 0.01 -

JPM Germany Eq A (acc)-EUR (1) F € 16.85 - 0.03 -

JPM Global Dyn A (acc)-SGD (1) F S$ 14.20 - 0.02 -

JPM Global Div A (div) - USD (1) $ 109.87 - 0.16 -

JPM High Eur STEEP A (dist)-GBP (1) F £ 9.92 - 0.03 -

JPM High Eur STEEP A (acc)-EUR (1) F € 11.87 - 0.02 -

JPM High Eur STEEP A (acc)-USD (1) F $ 15.51 - 0.06 -

JPM High Eur STEEP A (inc)-EUR (1) F € 11.28 - 0.02 -

JPM Turkey Eq A (acc)-EUR (1) € 15.70 - 0.01 -

JPM UK Eq A (acc)-GBP (1) F £ 12.05 - 0.00 -

JPM UK Eq A (dist)-GBP (1) £ 7.56 - 0.00 -

Equity Global

JF Gbl Dyn A (dist)-USD (1) F $ 13.59 - 0.02 -

JF Gbl Uncstr Eq (USD) A (dist)-USD (1) $ 38.40 - 0.07 -

JPM Gbl Div A (acc)-EUR (1) F € 84.82 - -0.11 -

JPM Gbl Div A (div)-EUR Hdg (1) € 77.85 - 0.07 -

JPM Gbl Dyn A (dist)-GBP (1) F £ 12.97 - 0.01 -

JPM Gbl Dyn A (acc)-USD (1) F $ 12.56 - 0.02 -

JPM Gbl Dyn A (dist)-USD (1) F $ 14.77 - 0.03 -

JPM Gbl Dyn A (acc)-EUR (1) F € 7.21 - -0.01 -

JPM Gbl Dyn A (acc)-CHF (hdg) (1) FSFr 120.30 - 0.13 -

JPM Gbl Dyn A (acc)-EUR Hdg (1) F € 5.45 - 0.00 -

JPM Gbl Dyn A (acc)-SGD (Hdg) (1) F S$ 11.84 - 0.01 -

JPM Gbl Dyn A (inc)-EUR (1) F € 7.33 - -0.01 -

JPM Gbl Focus A (acc)-EUR (1) F € 16.13 - 0.01 -

JPM Gbl Focus A (acc)-CHF (hdg) (1) FSFr 139.92 - 0.36 -

JPM Gbl Focus A (acc)-EUR Hgd (1) F € 8.62 - 0.03 -

JPM Gbl Focus A (dist)-EUR (1) € 21.60 - 0.01 -

JPM Gbl Real Estate Sec (USD) A (acc)-EUR Hdg (1) F € 6.23 - 0.00 -

JPM Gbl Real Estate Sec (USD) A (acc)-USD (1) F $ 9.51 - -0.01 -

JPM Gbl Real Estate Sec (USD) A (inc)-EUR Hdg (1) F € 5.67 - 0.00 -

JPM Gbl Sel Eq A (acc)-USD (2) F $ 160.26 - 0.20 -

JPM Gbl Sel Eq A (dist)-USD (2) F $ 108.75 - 0.14 -

JPM Gbl Soc Resp A (acc)-USD (1) F $ 10.15 - 0.04 -

JPM Gbl Soc Resp A (dist)-USD (1) F $ 6.04 - 0.02 -

JPM Gbl Uncstr Eq (USD) A (acc)-EUR Hdg (1) € 6.32 - 0.00 -

JPM Gbl Uncstr Eq (USD) A (acc)-EUR (1) € 78.06 - -0.08 -

JPM Gbl Uncstr Eq (USD) A (acc)-USD (1) $ 11.48 - 0.02 -

JPM Gbl Uncstr Eq (USD) A (dist)-EUR Hdg (1) € 5.97 - 0.00 -

JPM Gbl Uncstr Eq (USD) A (dist)-USD (1) $ 22.20 - 0.04 -

Equity Sector

JF Europe Tech A (dist)-EUR (1) F € 5.52 - 0.00 -

JF Pacific Tech A (acc)-EUR (1) F € 13.06 - 0.07 -

JF Pacific Tech A (acc)-USD (1) F $ 16.09 - 0.13 -

JF Pacific Tech A (dist)-USD (1) F $ 10.44 - 0.09 -

JF Pacific Tech A (dist)-GBP (1) F £ 12.14 - 0.09 -

JF US Tech A (dist)-USD (1) F $ 2.04 - 0.00 -

JPM Europe Tech A (acc)-EUR (1) F € 15.93 - -0.01 -

JPM Europe Tech A (dist)-EUR (1) F € 10.25 - 0.00 -

JPM Europe Tech A (dist)-GBP (1) F £ 7.88 - 0.01 -

JPM Gbl Cons Trends A (acc)-EUR (1) F € 13.42 - -0.02 -

JPM Gbl Cons Trends A (acc)-USD (1) F $ 17.15 - 0.02 -

JPM Gbl Nat Resources Fd (1) F S$ 16.34 - 0.09 -

JPM Gbl Natural Res A (dist)-EUR (1) F € 14.89 - 0.05 -

JPM Gbl Natural Res A (acc)-EUR (1) F € 17.28 - 0.05 -

JPM Gbl Natural Res A (acc)-USD (1) F $ 13.80 - 0.08 -

JPM H US STEEP A (acc)-EUR Hdg (1) F € 13.69 - 0.02 -

JPM US Tech A (acc)-EUR (1) F € 101.31 - -0.02 -

JPM US Tech A (dist)-GBP (1) F £ 1.77 - 0.01 -

JPM US Tech A (acc)-SGD (1) S$ 12.80 - 0.03 -

JPM US Tech A (acc)-USD (1) F $ 13.96 - 0.04 -

JPM US Tech A (dist)-USD (1) F $ 7.06 - 0.02 -

Equity Africa

JPM Africa Eq A (acc)-EUR (1) F € 18.19 - 0.03 -

JPM Africa Eq A (acc)-USD (1) F $ 11.09 - 0.04 -

JPM Africa Eq A (dist)-GBP (1) F £ 7.47 - 0.02 -

JPM Africa Eq A (inc)-EUR (1) F € 72.25 - 0.10 -

Bonds Broad Market

JPM Agg Bd A (acc)-USD (1) F $ 12.09 - 0.00 -

JPM Em Mkt Corp Bd A (acc)-EUR Hdg (1) F € 101.97 - 0.10 -

JPM Em Mkt Corp Bd A (acc)-USD (1) F $ 130.36 - 0.13 -

JPM Em Mkt Debt A (acc)-USD (1) F $ 18.11 - 0.00 -

JPM Euro Agg Bd A (acc)-EUR (1) F € 11.76 - 0.01 -

JPM Gbl Agg Bd A (acc)-USD (1) F $ 12.88 - 0.00 -

JPM Gbl Agg Bd A (dist)-USD (1) $ 13.60 - 0.00 -

JPM Gbl Conv (EUR) A (acc)-CHF Hdg (1) FSFr 21.53 - 0.03 -

JPM Gbl Conv (EUR) A (dist)-GBP Hdg (1) F £ 11.39 - 0.02 -

JPM Gbl Corp Bond A (div)-EUR Hdg (1) € 77.82 - 0.00 -

Bonds Extended Market

JPM EU Gov Bd A (acc)-EUR (1) F € 12.53 - 0.03 -

JPM Gbl Conv (EUR) A (acc)-EUR (1) F € 12.14 - 0.02 -

JPM Gbl Conv (EUR) A (dist)-EUR (1) F € 10.08 - 0.02 -

JPM US Aggr Bd Aacc-EUR (hdg) (1) € 79.61 - -0.03 -

(1) JPMorgan Funds(2) JPMorgan Investment Funds

Jefferies Umbrella Fund (LUX)11 Rue Aldringen, L-1118 Luxembourg 00 352 468193626FSA Recognised

Europe Convertible Bd A (Dis) - D - EUR F € 12.06 - 0.02 1.50

Europe Convertible Bd B (Cap) € 13.37 - 0.02 0.00

Global Convertible A (Dis) F $ 17.56 - -0.01 0.74

Global Convertible B (Cap) F $ 20.54 - -0.01 0.00

Global Convertible A Hdg GBP(Dis) F £ 11.31 - -0.01 0.71

Global Convertible B Hdg GBP (Cap) F £ 13.12 - -0.01 0.00

Global Convertible Hdg A (Cap) F $ 16.76 - -0.02 0.78

Global Convertible B Hdg (Dis) F $ 19.63 - -0.02 0.00

Global Convertible A Hdg EUR(Dis) F € 13.87 - -0.01 0.72

Global Convertible B Hdg EUR (Cap) F € 14.81 - -0.01 0.00

Global Convertible A Hdg CHF (Dis) FSFr 20.15 - -0.02 0.60

Global Convertible B Hdg CHF (Cap) FSFr 21.94 - -0.02 0.00

Fund Bid Offer D+/- Yield

Jubilee Financial Products LLPOther International Funds

Jubilee Emerging Europe Momentum Fund € 99.81 - - -

Swiss & Global Asset Management (LUX)funds@swissglobal-am.com, www.jbfundnet.comRegulated

JB BF ABS-EUR/A € 75.04 - -0.01 2.94

JB BF Absolute Ret Def-EUR/A € 104.31 - 0.03 2.41

JB BF Absolute Ret Def-GBP/A £ 104.23 - 0.03 2.31

JB BF Absolute Ret EM-CHF SFr 102.70 - 0.12 0.00

JB BF Absolute Ret EM-EUR/A € 103.63 - 0.13 2.81

JB BF Absolute Ret EM-USD/A $ 101.90 - 0.13 2.86

JB BF Absolute Ret Pl-EUR/A € 103.98 - 0.09 2.99

JB BF Absolute Ret Pl-GBP/A £ 110.15 - 0.10 2.78

JB BF Absolute Ret Pl-USD/A $ 110.32 - 0.11 2.78

JB BF Absolute Return GBP/A £ 107.28 - 0.07 2.25

JB BF Absolute Return-GBP/B £ 124.94 - 0.09 0.00

JB BF Absolute Return-EUR/A € 101.78 - 0.06 2.42

JB BF Absolute Return-USD/A $ 104.12 - 0.07 2.31

JB BF Cred Opportunities-EUR/B € 157.93 - 0.08 0.00

JB BF Credit Opportunities-USD $ 110.98 - 0.07 0.00

JB BF Dollar-USD/A $ 113.02 - -0.20 3.40

JB BF Dollar Med Term-USD/A $ 120.72 - -0.04 2.24

JB BF EM Infl Linked-CHF/A SFr 99.29 - 0.12 7.31

JB BF EM Infl Linked-EUR/A € 100.31 - 0.12 7.33

JB BF EM Infl Linked-GBP/A £ 99.08 - 0.13 7.32

JB BF EM Infl Linked-USD/A $ 100.91 - 0.14 7.30

JB BF Emerging-CHF/A SFr 110.02 - -0.07 -

JB BF Emerging-EUR/A € 138.18 - -0.03 5.33

JB BF Emerging-USD/A $ 161.01 - -0.05 4.24

JB BF Euro Government-EUR/A € 107.19 - 0.23 3.50

JB BF Euro-EUR/A € 122.36 - 0.11 3.61

JB BF Global Convert-EUR/A € 66.35 - 0.03 1.14

JB BF Global High Yield-EUR/A € 105.35 - 0.16 6.76

JB BF Global High Yield GBP/A £ 99.80 - 0.15 6.79

JB BF Global High Yield-USD/A $ 115.58 - 0.18 6.12

JB BF Inflation Linked-CHF/B SFr 108.02 - -0.02 0.00

JB BF Local Emerging-CHF/A SFr 102.82 - 0.20 4.25

JB BF Local Emerging-EUR/A € 103.68 - 0.20 4.21

JB BF Local Emerging-GBP/A £ 116.42 - 0.23 3.93

JB BF Local Emerging-USD/A $ 139.85 - 0.28 3.89

JB BF Swiss Franc-CHF/B SFr 190.00 - -0.80 0.00

JB BF Total Return-CHF SFr 105.81 - 0.05 0.00

JB BF Total Return-EUR/A € 45.45 - 0.02 3.21

JB Commodity-EUR/A € 72.62 - 0.18 1.43

JB Commodity-EUR/B € 84.98 - 0.22 0.00

JB Commodity-USD/A $ 82.29 - 0.21 1.86

JB Commodity-USD/B $ 96.74 - 0.25 0.00

JB EF Abs Ret Europe-EUR/A € 110.75 - 0.05 0.09

JB EF Abs Ret Europe-EUR/B € 110.85 - 0.06 0.00

JB EF Asia-USD/A $ 121.86 - 0.26 1.22

JB EF Biotech-USD/A $ 150.88 - -0.46 0.07

JB EF Black Sea-EUR/A € 30.24 - 0.20 3.95

JB EF Black Sea-USD/A $ 29.46 - 0.30 4.07

JB EF Central Europe-EUR/A € 195.10 - 0.88 2.20

JB EF Chindonesia-USD/A $ 93.76 - -0.43 0.16

JB EF Chindonesia-USD/B $ 94.01 - -0.43 0.00

JB EF Energy Transition-EUR/B € 117.85 - 0.09 0.00

JB EF Energy Transition-USD/B $ 121.06 - 0.48 0.00

JB EF Euro Large Cap-EUR € 110.16 - 0.16 0.00

JB EF Euroland Value-EUR/A € 111.47 - 0.51 2.61

JB EF Europe Sel.Fd-EUR/A € 59.29 - 0.22 2.07

JB EF Europe S&Mid Cap-EUR/A € 115.89 - 0.32 1.01

JB EF Europe-EUR/A € 172.20 - 0.20 1.81

JB EF Global-EUR/A € 66.18 - -0.15 2.14

JB EF German Value-EUR/A € 165.91 - 0.31 2.50

JB EF Gl Emerging Mkts-EUR/A € 74.03 - 0.11 1.67

JB EF Health Opport - USD/A $ 127.29 - 0.08 0.12

JB EF Health Opport-USD/B $ 127.50 - 0.08 0.00

JB EF Japan-JPY/A ¥ 7725.00 - 81.00 1.92

JB EF Luxury Brands-EUR/A € 169.11 - -1.38 0.27

JB EF Luxury Brands-USD/A $ 149.24 - -0.74 0.24

JB EF Luxury Brands-GBP/B £ 102.74 - -0.59 0.00

JB EF Special Val. EUR/A € 99.39 - 0.27 1.58

JB EF Swiss S&Mid Cap-CHF/B SFr 390.14 - -0.20 0.00

JB EF US Leading-USD/A $ 288.43 - -0.30 0.24

JB EF US Value-USD/A $ 122.72 - 0.17 0.33

JB Ms Africa Opp.-EUR/B € 92.76 - 0.35 -

JB Ms Global Sel. EUR/B € 100.45 - -0.13 0.00

JB Strategy Balanced-CHF/B SFr 134.25 - -0.06 0.00

JB Strategy Balanced-EUR € 133.88 - -0.02 0.00

JB Strategy Balanced-USD/B $ 116.40 - 0.09 0.00

JB Strategy Inc-CHF/B SFr 113.87 - -0.08 0.00

JB Strategy Inc-EUR/B € 145.50 - -0.02 0.00

JB Strategy Inc-USD/B $ 137.60 - 0.04 0.00

JB Strategy Growth-CHF/B SFr 81.33 - -0.02 0.00

JB Strategy Growth-EUR € 96.17 - -0.02 0.00

Kairos Investment Management Ltd (CYM)Regulated

Kairos Multi Strategy E1 (Est) € 1628.34 - 5.43 0.00

Kairos Multi Strategy E2 (Est) € 1215.80 - 3.93 0.00

Kairos Multi Strategy E3 (Est) € 1179.44 - 3.71 0.00

Kairos Multi Strategy D1 (Est) $ 1744.02 - 7.38 0.00

Kairos Multi Strategy D2 (Est) $ 1281.33 - 5.29 0.00

Kames Capital ICVC (UK)Kames House, 3 Lochside Crescent, Edinburgh, EH12 9SA0800 45 44 22 www.kamescapital.comAuthorised Funds

Ethical Cautious Managed A Acc £ 1.24 - 0.00 2.06

Ethical Cautious Managed A Inc £ 1.08 - 0.00 2.09

Ethical Corporate Bond A Acc £ 1.75 - 0.00 3.70

Ethical Corporate Bond A Inc £ 1.07 - 0.00 3.70

Ethical Equity A Acc £ 1.17 - 0.00 1.62

High Yield Bond A Acc £ 1.05 - 0.00 5.20

High Yield Bond A Inc £ 0.55 - 0.00 5.20

Inflation Linked A Acc £ 1.19 - 0.00 -

Investment Grade Bond A Acc £ 1.39 - 0.00 3.58

Investment Grade Bond A Inc £ 1.09 - 0.00 3.58

Sterling Corporate Bond A Acc £ 0.61 - 0.00 3.92

Sterling Corporate Bond A Inc £ 0.29 - 0.00 3.91

Strategic Assets A Acc £ 0.96 - 0.00 1.11

Strategic Bond A Acc £ 1.67 - 0.00 2.49

Strategic Bond A Inc £ 1.16 - 0.00 2.49

UK Equity Absolute Return A Acc £ 1.08 - 0.00 -

UK Equity A Acc £ 1.79 - -0.01 1.64

UK Equity Income A Acc £ 1.54 - 0.00 4.17

UK Equity Income A Inc £ 1.35 - 0.00 4.29

UK Opportunities A Acc £ 1.19 - -0.01 1.12

UK Smaller Companies A Acc £ 1.71 - -0.01 0.36

Kames Capital VCIC (IRL)1 North Wall Quay, Dublin 1, Ireland +35 3162 24493FSA Recognised

Absolute Return Bond B GBP Acc £ 10.35 - -0.01 -

High Yield Global Bond A GBP Inc £ 5.29 - 0.00 5.17

High Yield Global Bond B GBP Inc £ 11.00 - 0.01 5.66

Investment Grade Global Bd A GBP Inc £ 5.42 - 0.00 2.33

Strategic Global Bond A GBP Inc £ 10.67 - -0.01 1.65

Strategic Global Bond B GBP Inc £ 6.05 - -0.01 2.16

Key Asset ManagementOther International Funds

Key Hedge (Est) $ 407.72 - 1.63 0.00

Key Europe Inc (Est) € 173.85 - 0.70 0.00

Key Recovery (Est) $ 171.78 - 0.21 0.00

Key Global Inc (Est) $ 569.94 - 3.30 0.00

Kleinwort Benson (Channel Islands) Investment Management Limited (JER)Regulated

Kleinwort Benson Global Funds Limited

Bond & Equity £ 4.65 - 0.00 4.34

Fund Bid Offer D+/- Yield

Kleinwort Benson (CI) Fund Services Ltd (GSY)Regulated

Kleinwort Benson Elite PCC Ltd

Elite Multi-Asset Balanced USD Fund A Income Shares $ 1.06 - 0.00 0.00

Elite Multi-Asset Balanced USD Fund B Shares (Susp) $ 1.03 1.03 0.14 -

EUR Currency B EUR Accumulating Non-Rpt € 1.00 - 0.00 -

EUR Fixed Income B EUR Income Rpt € 1.02 - 0.00 -

GBP Currency B GBP Accumulating Non-Rpt £ 1.00 - 0.00 -

International Bond B GBP Accumulating Non-Rpt £ 1.00 - 0.00 -

International Equity B GBP Accumulating Non-Rpt £ 1.00 - 0.00 -

Multi Asset Balanced A GBP Income Rpt £ 1.29 - 0.00 0.00

Multi Asset Balanced A GBP Reinvest Rpt £ 1.29 - 0.00 0.00

Multi Asset Balanced B GBP Income Rpt £ 1.25 - 0.00 0.00

Multi Asset Balanced B EUR Accumulating Non-Rpt € 1.00 - 0.00 -

Multi Asset Balanced B GBP Accumulating Non-Rpt £ 1.00 - 0.00 -

Multi Asset Balanced B USD Accumulating Non-Rpt $ 1.00 - 0.00 -

Multi Asset Balanced C GBP Income Ppt £ 1.32 - 0.00 -

Multi Asset Conservative A GBP Income Rpt £ 1.05 - 0.00 0.00

Multi Asset Conservative A GBP Reinvest Rpt £ 1.05 - 0.00 1.47

Multi Asset Conservative B EUR Accumulating Non-Rpt € 1.00 - 0.00 -

Multi Asset Conservative B GBP Accumulating Non-Rpt £ 1.00 - 0.00 -

Multi Asset Conservative B GBP Income Rpt £ 1.03 - 0.00 1.51

Multi Asset Conservative B USD Accumulating Non-Rpt $ 1.00 - 0.00 -

Multi Asset Conservative C GBP Income Rpt £ 1.07 - 0.00 -

Multi Asset Growth A GBP Reinvest Rpt £ 1.08 - 0.00 0.00

Multi Asset Growth A GBP Income Rpt £ 1.08 - 0.00 0.00

Multi Asset Growth B EUR Accumulating Non-Rpt € 1.00 - 0.00 -

Multi Asset Growth B GBP Accumulating Non-Rpt £ 1.00 - 0.00 -

Multi Asset Growth B GBP Income Rpt £ 1.00 - 0.00 -

Multi Asset Growth B USD Accumulating Non-Rpt $ 1.00 - 0.00 -

Sterling Fixed Income A GBP Income Rpt £ 11.64 - -0.05 3.38

Sterling Fixed Income B GBP Income Rpt £ 1.01 - 0.00 -

USD Currency B USD Accumulating Non-Rpt $ 1.00 - 0.00 -

Legg Mason Dublin Funds (IRL)Rochestown, Drinagh, Wexford, IrelandFSA Recognised

Legg Mason Global Funds PLC

Equity Funds

BFM Asia Pacific Equity A dis(A) $ 206.89 - 0.79 0.62

BMF Emerging Markets Eq Pr dis(A) $ 87.99 - 0.22 0.78

BFM European Equity A dis(A) € 122.15 - 0.29 1.79

BFM Intl Large Cap A dis(A) $ 67.58 - 0.22 1.66

BW Global Opp.Fixed Inc A dis (M) $ 121.63 - 0.23 2.12

CBA US Aggressive Growth A dis(A) $ 110.30 - -0.30 0.00

CBA US Appreciation A dis(A) $ 111.13 - -0.05 0.00

CBA US Fundamental Value A dis(A) $ 90.10 - 0.14 0.00

CBA US Large Cap Growth A dis(A) $ 115.03 - -0.26 0.00

LM Batterymarch Gbl Equity Fd $ 103.08 - 0.43 0.26

GC Global Equity A dis(A) $ 91.26 - 0.35 0.20

LM CM Growth A dis(A) $ 85.01 - -0.18 0.00

LM CM Opportunity A dis(A) $ 186.46 - 1.89 0.00

LM CM Value A dis(A) $ 116.67 - -0.08 0.00

LM Permal Gl Absolute A dis(A) $ 101.99 - 0.04 0.00

LMHK China Fund A dis $ 99.40 - 0.62 0.40

PCM US Equity A cap $ 97.23 - -0.49 -

Royce Europ. Smaller Companies A acc € 125.19 - 0.31 0.87

Royce Global Smaller Companies A dis $ 122.59 - 0.76 0.00

Royce Smaller Companies A dis(A) $ 186.89 - -0.15 0.00

Royce US Small Cap Opp A dis(A) $ 306.11 - -1.49 0.00

Fixed Income Funds

BW Global Fixed Inc A dis(S) $ 137.20 - 0.24 1.11

WA Asian Opportunities A dis(D) $ 125.72 - 0.11 2.38

WA Brazil Equity A dis(A) $ 72.70 - -0.07 2.96

WA Div Strategic Income A dis(D) $ 95.19 - 0.01 2.95

WA Emerging Markets Bd A dis(D) $ 129.17 - -0.21 4.17

WA Euro Core Plus Bd A dis(D) € 94.55 - 0.12 1.38

WA Euro High Yield A dis (D) € 100.87 - 0.13 6.87

WA Gl Blue Chip Bd A dis(M) $ 109.47 - -0.08 1.82

WA Gl Core Plus Bd A dis(D) $ 108.73 - 0.17 1.76

WA Gl Credit Abs Ret Fd A dis $ 103.10 - -0.14 0.00

WA Gl Credit Cl.A dis (D) $ 107.96 - -0.09 2.12

WA Global High Yield A dis(D) $ 87.62 - 0.04 6.22

WA Global Inf-Linked A dis(D) $ 109.28 - -0.13 2.69

WA Gl Multi Strategy A dis(D) $ 128.20 - 0.04 3.37

WA Inflation Mgmt A dis(A) $ 121.29 - -0.27 1.43

WA UK£ Core Plus Bond A dis (D) £ 109.67 - 0.21 2.01

WA UK£ Infl-Linked Plus A dis (D) £ 116.75 - 0.04 1.00

WA UK£ Long Duration A dis (D) £ 112.95 - 0.47 2.02

WA US Adjustable Rate A cap $ 99.90 - 0.02 0.00

WA US Core Bond A dis(D) $ 100.77 - -0.16 1.71

WA US Core Plus Bond A dis(D) $ 111.94 - -0.14 1.73

WA US High Yield A dis(D) $ 86.55 - 0.09 6.12

WA US Short Term Govt A dis(D) $ 101.29 - -0.08 1.03

Money Market Funds

WA US Money Market A dis(D) $ 1.00 - 0.00 0.03

Legg Mason Luxembourg Funds (LUX)145 Rue du Kiem, L-8030 StrassenFSA Recognised

Other classes available: Class C, Class I

Equity Funds

LM Emerg. Markets Eq A Ord $ 308.26 - 1.59 0.00

LM Eurold Eq.A Euro Cap € 103.08 - 0.26 0.00

Money Funds

LM Eurold Cash A Euro Cap € 135.98 - 0.00 0.00

Asset Allocation Funds

LM M-Man.Bal A Cap Euro € 129.38 - -0.04 0.00

LM M-Man.Bal A Cap USD $ 122.79 - -0.05 0.00

LM M-Man Cons A Cap Euro € 126.08 - 0.08 0.00

LM M-Man Cons A Cap USD $ 126.67 - -0.08 0.00

LM M-Man Perf A Cap Euro € 131.74 - -0.07 0.00

LM M-Man Perf A Cap USD $ 121.94 - -0.04 0.00

Liongate Capital Management (CYM)www.liongate.comRegulated

Liongate Multi-Strategy Fund

Class A1 $ 1755.58 - -11.93 -

Class B1 € 1702.34 - -11.98 0.00

Class C1 £ 1776.44 - -12.04 -

Class D1 ¥ 119464.78 - -882.05 0.00

Class E1 SFr 1575.55 - -10.80 0.00

Class F1 SKr 963.33 - -5.67 0.00

Liongate Commodities Fund

Class A $ 1087.15 - -10.18 -

Class B € 1050.27 - -10.12 0.00

Class C £ 1013.73 - -9.43 0.00

Lloyd George ManagementOther International Funds

LG Antenna Fd Ltd $ 62.40 - - 0.00

LG Asian Plus Ltd $ 58.24 - 0.19 0.00

LG Asian Smaller Cos $ 109.07 - 0.67 0.00

LG India Fd Ltd $ 55.34 - 0.14 0.00

Lloyds TSB Offshore Fd Mgrs (1000)F (JER)PO Box 311, 11-12 Esplanade, St Helier, Jersey, JE4 8ZU 01534 845555FSA Recognised

Lloydstrust Gilt £ 12.5000 - 0.0300 2.77

Lloyds TSB Offshore Funds Ltd

Capital Growth £ 1.8420 - -0.0030 1.09

Euro High Income € 1.6620 - 0.0030 4.16

European £ 6.6840 - -0.0020 0.85

High Income £ 0.8846 - 0.0020 5.34

International £ 3.4580 - 0.0030 0.02

North American £ 11.2500 - 0.0300 0.00

Sterling Bond £ 1.4600 - 0.0040 3.80

UK £ 6.3350 - -0.0280 1.87

Lloyds TSB Offshore Gilt Fund Ltd

Lloyds TSB Gilt Fund Quarterly Share £ 1.2900 - 0.0030 2.55

Monthly Share £ 1.2410 - 0.0030 2.55

Lloyds TSB Money Fund Ltd

Australian Dollar A$ 167.6010 - 0.0100 2.05

Euro € 52.9770 - -0.0010 -0.35

New Zealand Dollar NZ$ 201.6360 - 0.0080 1.34

Sterling Class £ 52.4110 - -0.0010 0.10

US Dollar Class $ 60.8110 - 0.0000 -0.16

Lloyds TSB Offshore Multi Strategy Fund Ltd

Conservative Strategy £ 1.0760 - 0.0020 2.89

Growth Strategy £ 1.2830 - 0.0020 1.37

Aggressive Strategy £ 1.3710 - 0.0020 0.38

Global USD Growth Strategy $ 1.0860 - 0.0020 0.00

Dealing Daily

Fund Bid Offer D+/- Yield

Lombard Odier Darier Hentsch (LUX)Queensberry House 3 Old Burlington Street London W1S 3ABFSA Recognised

Lombard Odier Funds

1798 Europe Eq. L/S CHF C A SFr 10.15 - -0.02 0.00

1798 Europe Eq. L/S EUR C A € 10.24 - -0.02 0.00

1798 Europe Eq. L/S USD C A $ 10.21 - -0.02 0.00

1798 Optimum Trend (EUR) P A € 11.69 - 0.01 0.00

1798 Optimum Trend (USD) P A $ 11.25 - 0.01 0.00

All Roads (CHF) PA SFr 16.71 - -0.01 -

All Roads (USD) PA $ 10.47 - -0.01 -

All Roads (GBP) PA £ 10.61 - -0.01 -

All Roads (EUR) PA € 10.63 - -0.01 -

Alpha Japan (EUR) P A F € 6.42 - 0.04 0.00

Alpha Japan (CHF) P A F SFr 8.11 - 0.05 0.00

Alpha Japan (JPY) P A F ¥ 744.00 - 5.00 0.00

Alpha Japan (USD) P A F $ 9.19 - 0.06 0.00

Alternative Beta P A F SFr 115.45 - 0.03 0.00

Alternative Beta P A F € 77.06 - 0.02 0.00

Alternative Beta P A F $ 114.57 - 0.06 0.00

Commodities (CHF) P A SFr 8.43 - 0.05 0.00

Commodities (EUR) P A € 8.52 - 0.04 0.00

Commodities (USD) P A $ 8.60 - 0.05 0.00

Convertible Bd P A € 14.53 - 0.01 0.00

Convertible Bd Asia P A F SFr 13.45 - 0.04 0.00

Convertible Bd Asia P A F € 14.20 - 0.04 0.00

Convertible Bd Asia P A F $ 14.20 - 0.04 0.00

Emerging Consumer (CHF) P A SFr 12.26 - 0.15 0.00

Emerging Consumer (EUR) P A € 12.40 - 0.13 0.00

Emerging Consumer (USD) P A $ 12.26 - 0.12 0.00

Emerging Eq.Risk Par.(EUR) € 8.60 - 0.03 0.00

Emerging Eq. Risk Par.(USD) $ 7.84 - 0.05 0.00

Emerging Loc.Cur.&Bds DH (CHF) P ASFr 9.61 - 0.00 0.00

Emerging Mkt.Bd.Fdt PA $ 23.86 - 0.00 0.00

Emerg.Loc.Cur.Bd.Fdt PA SFr 10.58 - -0.01 0.00

Emerg.Loc.Cur.Bd.Fdt PA € 12.57 - -0.01 0.00

Emerg.Loc.Cur.Bd.Fdt PA $ 11.39 - 0.03 0.00

Euro BBB-BB Fdt PA SFr 14.48 - 0.00 0.00

Euro BBB-BB Fdt PA € 11.29 - 0.00 0.00

Euro BBB-BB Fdt PA £ 9.89 - 0.00 0.00

Euro BBB-BB Fdt PA $ 16.02 - 0.00 0.00

Euro Credit Bd PA F € 11.87 - 0.00 0.00

Euro Government Fdt P A € 11.24 - 0.01 0.00

Euro Inflation-Lk Fdt PA € 11.65 - 0.01 0.00

Euro Resp.Corp. Fdt PA € 17.06 - 0.00 0.00

Europe High Conviction PA € 7.85 - -0.03 0.00

Eurozone Small&Mid Caps F € 36.41 - 0.03 0.00

Gbl.BBB-BB Fdmt PA € 10.07 - -0.02 -

Gbl.Gov.Fdt SH (EUR) P A € 9.87 - 0.00 -

Gbl.Gvt.Fdmt PA € 9.92 - -0.01 -

Gbl.5B Fdmt (CHF) P A SFr 9.98 - -0.03 -

Gbl.5B Fdmt SH (USD) P A $ 10.07 - 0.00 -

Generation Global (CHF) P A F SFr 8.84 - -0.04 0.00

Generation Global (EUR) P A F € 12.04 - -0.04 0.00

Generation Global (USD) P A F $ 10.68 - 0.00 0.00

Global Energy (USD) P A F $ 9.64 - 0.05 0.00

Golden Age (CHF) P A F SFr 14.87 - -0.04 0.00

Golden Age (EUR) P A € 10.07 - -0.03 0.00

Golden Age (USD) P A F $ 13.94 - -0.04 0.00

Government Bd (USD) P A $ 20.20 - -0.03 0.00

Invst.Gde A-BBB (CHF) P A SFr 12.92 - 0.00 0.00

Japan Small & Mid Caps P A ¥ 1678.00 - 12.00 0.00

Money Market (EUR) P A € 112.32 - 0.00 0.00

Money Market (GBP) P A F £ 10.22 - 0.00 0.00

Money Market (USD) P A F $ 10.29 - 0.00 0.00

Neuberger B.US Core(USD)P A $ 9.90 - -0.02 0.00

Sands US Growth (USD) PA $ 11.48 - -0.01 -

Selective Gbl P A € 160.92 - -0.66 0.00

Tactical Alpha (CHF)P A SFr 9.94 - 0.00 0.00

Tactical Alpha (EUR)P A € 10.14 - 0.00 0.00

Tactical Alpha (USD)P A $ 14.50 - 0.00 0.00

Technology P A € 10.01 - -0.01 0.00

Technology P A $ 15.40 - 0.01 0.00

Total Return Bond (EUR) P A € 12.38 - 0.01 0.00

Total Return Bond (USD) P A $ 18.11 - 0.01 0.00

Vital Food Syst.Hdg PA SFr 10.32 - 0.04 -

Vital Food Syst.Hdg PA € 10.31 - 0.04 -

Vital Food Syst.Hdg PA $ 10.41 - 0.05 -

William Blair Gbl Gth P A F $ 10.40 - 0.02 0.00

William Blair Gbl Gth P A F € 10.69 - -0.01 0.00

Wld Gold Expertise P A F SFr 27.04 - 0.56 0.00

Wld Gold Expertise P A € 21.15 - 0.44 0.00

Wld Gold Expertise P A $ 27.56 - 0.60 0.00

Lombard Odier Funds II

Balanced (EUR) P A F € 109.87 - 0.00 0.00

Conservative (EUR) P A F € 106.24 - 0.01 0.00

LO Selection

Balanced (CHF) P A F SFr 102.26 - -0.03 0.00

Balanced (EUR) P A F € 111.12 - 0.01 0.00

Conservative (CHF) P A F SFr 101.84 - -0.04 0.00

Conservative (EUR) P A F € 107.29 - 0.01 0.00

Conservative (USD) P A F $ 102.64 - 0.08 0.00

Global Allocation (GBP) P A F £ 8.74 - 0.01 0.00

Growth (CHF) P A F SFr 102.86 - -0.05 0.00

Growth (EUR) P A F € 114.32 - 0.01 0.00

M & G Securities Ltd (UK)

Property & Other UK Unit Trusts

M&G Property Portfolio A Acc 80.12 84.33 0.01 2.83

M & G (Guernsey) Ltd (GSY)Regulated

The M&G Offshore Fund Range

American Fund 111.84 116.50 0.11 0.00

Corporate Bond 1266.58 1305.75 3.33 3.27

Global Basics 2313.96 2410.38 -9.60 0.14

Global Leaders 2695.51 2807.83 3.99 1.66

High Yield Corporate Bond 988.87 1019.45 1.37 5.78

Episode Macro Fund £ 95.14 99.10 0.02 0.00

Optimal Income Fund 132.94 138.48 0.20 3.02

Recovery Fund Limited 'A' Participating Shares £ 102.08 106.34 -0.37 0.84

Recovery Fund Limited 'I' Participating Shares £ 102.35 106.61 -0.36 1.59

Strategic Corporate Bond Fund 126.98 132.28 0.27 3.05

UK Growth 1227.92 1279.08 -0.47 1.60

UK Select Fund 956.47 996.32 -2.60 1.63

Other International Funds

M&G Property Fund - Retail £ 6.37 6.70 0.00 4.07

M&G Property Fund A Inc £ 6.37 6.37 0.00 4.61

MFS Meridian Funds SICAV (LUX)Regulated

Absolute Return A1 € 17.60 - -0.06 0.00

Asia ex-Japan A1 $ 23.77 - 0.09 0.00

China Equity Fd A1 $ 9.72 - 0.07 0.00

Continental European Eqty A1 € 12.56 - 0.00 0.00

Emer Mkts Debt Lo Curr Fd A1 $ 15.04 - 0.05 0.00

Emerging Markets Debt A1 $ 33.92 - -0.02 0.00

Emerging Markets Eq.A1 $ 13.24 - 0.04 0.00

European Concentrated A1 € 13.12 - -0.01 0.00

European Core Eq A1 € 21.65 - -0.04 0.00

European Res.A1 € 22.21 - -0.01 0.00

European Smaller Companies A1 € 31.00 - 0.00 0.00

European Value A1 € 23.70 - -0.01 0.00

Global Bond A1 $ 11.69 - 0.01 0.00

Global Conc.A1 $ 26.62 - -0.05 0.00

Global Energy Fund A1 $ 14.52 - 0.05 0.00

Global Equity A1 $ 34.75 - -0.03 0.00

Global Equity A1 € 16.90 - -0.09 0.00

Global Multi-Asset A1 $ 15.63 - 0.05 0.00

Global Res.A1 $ 20.79 - 0.04 0.00

Global Total Return A1 € 12.98 - -0.05 0.00

High Yield A1 $ 23.37 - 0.02 0.00

High Yield Fund A1 € 13.02 - -0.05 0.00

Inflation-Adjusted Bond A1 $ 15.46 - -0.05 0.00

Japan Equity A1 $ 7.87 - 0.01 0.00

Latin American Equity Fd A1 $ 21.64 - 0.05 0.00

Limited Maturity A1 $ 14.03 - 0.00 0.00

Prudent Wealth Fd A1 $ 12.16 - 0.01 0.00

Research Bond A1 $ 16.03 - -0.02 0.00

UK Equity A1 £ 6.70 - 0.02 0.00

US Conc.Growth A1 $ 11.08 - -0.03 0.00

US Government Bond A1 $ 16.87 - -0.02 0.00

Value A1 $ 15.39 - 0.00 0.00

Fund Bid Offer D+/- Yield

MMIP Investment Management Limited (GSY)Regulated

Multi-Manager Investment Programmes PCC Limited

European Equity Fd Cl A Initial Ser € 1675.38 1681.94 -12.15 0.00

Japanese Equity Fd Cl A Initial Ser ¥ 175769.00 176806.00 2465.00 0.00

MMIP - US EQUITY CLASS A 01 June 07 Series $ 901.40 904.10 -12.99 0.00

Pacific Basin Fd Cl A Initial Ser $ 2345.13 2372.31 19.55 0.00

UK Equity Fd Cl A Series 01 £ 1562.07 1578.44 41.67 0.00

Diversified Absolute Rtn Fd USD Cl AF2 $ 1486.34 - -6.52 0.00

Diversified Absolute Return Stlg Cell AF2 £ 1499.38 - -6.39 0.00

MAM Funds (IRL)Regulated

Miton Global Diversified Income A 103.78 - 0.10 -

Man InvestmentsOther International Funds

Man AHL Alpha USD Shares $ 796.85 - 15.03 0.00

Man AHL Diversified Plc $ 92.18 - 2.23 0.00

Mangart Global Fund Ltd (CYM)Regulated

B Shares EUR Nav (Final) € 151.47 - 2.24 0.00

B Shares USD Nav (Final) $ 151.47 - 2.24 0.00

Manulife Global Fund (LUX)31 Z.A. Bourmicht, L-8070 Bertrange, Luxembourgwww.manulife.com.hkFSA Recognised

American Growth Fund A $ 20.51 - 0.08 0.00

Asia Total Return Fund (Class AA) F $ 1.03 - 0.00 2.64

Asia Value Dividend Equity Fund AA F $ 1.41 - 0.01 1.02

American Growth Fund AA F $ 1.17 - 0.00 0.00

Asian Equity Fund A $ 2.80 - 0.02 0.37

Asian Equity Fund AA F $ 0.90 - 0.01 0.38

Asian Small Cap Equity Fund AA F $ 1.85 - 0.02 0.55

China Value Fund A $ 7.13 - 0.08 0.75

China Value Fund AA F $ 2.24 - 0.02 0.49

Dragon Growth Fund A $ 1.58 - 0.01 1.40

Dragon Growth Fund AA F HK$ 7.69 - 0.07 1.04

Emerging Eastern Europe Fund AA F $ 1.98 - 0.02 1.47

Emerging Eastern Europe Fund A $ 4.61 - 0.04 1.79

Emerging Markets Infrastructure Fund Class AA $ 0.97 - 0.00 -

European Growth Fund A $ 9.20 - 0.02 0.92

European Growth Fund AA F $ 0.66 - 0.00 0.57

Global Contrarian Fund AA F $ 0.87 - 0.01 0.00

Global Property Fund AA F $ 0.90 - 0.00 0.64

Global Resources Fund AA F $ 1.02 - 0.00 0.00

Healthcare Fund AA F $ 1.21 - 0.01 0.00

India Equity Fund AA F $ 1.04 - 0.00 0.00

International Growth Fund A $ 3.46 - 0.01 0.04

International Growth Fund AA F $ 0.80 - 0.00 0.00

Japanese Growth Fund A $ 2.51 - 0.00 0.19

Japanese Growth Fund AA F $ 0.65 - 0.00 0.00

Latin America Equity Fund AA F $ 1.21 - 0.00 1.02

Russia Equity Fund AA F $ 0.63 - 0.01 0.63

Strategic Income AA F $ 1.14 - 0.00 3.43

Taiwan Equity Fund AA F $ 1.39 - 0.02 0.32

Turkey Equity Fund AA F $ 1.05 - 0.00 0.00

US Bond Fund AA F $ 1.26 - 0.00 2.40

U.S. Special Opportunities Fund AA F $ 0.92 - 0.00 4.86

US Small Cap Equity Fund AA F $ 0.92 - 0.01 0.00

US Treasury Inflation-Protected Securities Fund AA F $ 1.41 - 0.00 0.78

Marlborough International Management Limited(GSY)Tudor House, Le Bordage, St Peter Port, Guernsey, CI, GY1 1DB +44 1481 71520FSA Recognised

Marlborough North American Fund Ltd £ 20.75 20.96 -0.26 0.00

Marlborough Tiger Fund Ltd F £ 27.15 27.42 0.73 0.00

Marwyn Investment Management LLP (CYM)Regulated

Marwyn Value Investors £ 311.30 - -12.48 0.00

Meditor Group Limited (BMU)Regulated

European Hedge Fd (B) (Est) $ 544.82 - 2.69 0.00

European Hedge Fd (C) (Est) $ 276.91 - 1.39 0.00

Melchior Hedge Funds (CYM)Regulated

Melchior European Fund Ltd EUR Class € 148.24 - -2.41 -

Meridian Fund Managers LtdOther International Funds

Global Gold & Resources Fund $ 429.25 - -27.37 -

Global Energy & Resources Fund $ 97.47 - -2.56 -

Metage CapitalOther International Funds

MGS (Est) $ 198.68 - -0.45 -

MEMO (Est) $ 466.36 - 11.80 0.00

MEMV (Est) $ 108.81 - 3.16 -

Mirabaud & Cie (LUX)www.mirabaud.com, marketing@mirabaud.comRegulated

Mirabaud Fund

Mir. Ac. All. Bal A EUR € 101.18 - 0.40 0.00

Mir. Ac. All. Cons A EUR € 103.30 - 0.18 0.00

Mir. - Conv. Bonds A EUR € 114.72 - -0.06 0.00

Mir. - Eq Asia ex Jap A $ 169.92 - 0.38 0.00

Mir. - Eq Glb Emrg Mkt A $ 108.95 - 0.31 -

Mir. - Eq Eur exUK A Cap € 86.62 - -0.11 0.00

Mir. - Eq Global A USD $ 102.65 - 1.33 0.00

Mir. -Eq Spain A € 17.76 - 0.13 0.00

Mir. - Eq Swiss Sm/Mid A SFr 204.67 - 0.00 0.00

Mir. - Eq UK £ 1.73 1.82 0.01 -

Mir. - Eq US A USD $ 127.90 - 0.01 0.00

MitonOptimal Offshore (GSY)www.MitonOptimal.comRegulated

Core Diversified Fund (USD) $ 109.80 - 0.54 0.00

Core Diversified Fund (EUR) € 92.29 - 0.42 0.00

Core Diversified Fund (GBP) £ 100.72 - 0.47 0.00

Core Diversified USD E Class $ 99.71 - 0.35 -

Core Diversified GBP E Class £ 99.02 - 0.39 -

Core Diversified SGD E Class S$ 98.78 - 0.39 -

Global Real Estate Fund $ 102.66 - 1.84 0.00

International Diversified $ 99.23 - 0.26 0.00

International Beta Equity $ 105.10 - 1.33 0.00

International Equity $ 101.93 - 0.83 0.00

Managed Flexible US$ Fund $ 103.20 - 0.19 0.00

Offshore Global (GBP) £ 92.42 - 0.51 0.00

Offshore Global (USD) $ 85.29 - 0.40 0.00

Offshore Special Situations (GBP) £ 131.89 - 0.26 0.00

Offshore Special Situations (USD) $ 121.09 - 0.20 0.00

Offshore Special Situations (EUR) € 101.50 - 0.16 0.00

Offshore Special Situations (YEN) ¥ 10689.91 - 12.69 0.00

Rhodium USD $ 92.95 - 0.25 0.00

Rhodium GBP £ 90.49 - 0.18 0.00

Rhodium AUD A$ 94.53 - 0.20 0.00

Rhodium SGD S$ 89.32 - 0.14 0.00

Rhodium THB THB 916.59 - 0.64 0.00

Special Situations USD E Class $ 98.00 - 0.13 -

Special Situations GBP E Class £ 98.91 - 0.17 -

Special Situations SGD E Class S$ 97.70 - 0.12 -

Morant Wright Management Ltd (CYM)Regulated

MW Japan Fd Ltd A $ 17.48 - 0.28 0.00

MW Japan Fd Ltd B $ 17.89 - 0.30 0.00

Morgan Stanley Investment Funds (LUX)6b Route de Trèves L-2633 Senningerberg Luxembourg (352) 34 64 61www.morganstanleyinvestmentfunds.comFSA Recognised

US Advantage A F $ 36.96 - -0.01 0.00

Absolute Return Currency A F € 23.40 - -0.06 0.00

Asian Equity A F $ 42.71 - 0.27 0.00

Asian Property A F $ 18.32 - 0.09 0.00

Asian Property AX F £ 10.75 - 0.04 1.15

Diversified Alpha Plus A F € 28.14 - -0.04 0.00

Emerg Europ, Mid-East & Africa Eq A F € 59.70 - 0.09 0.00

Emerging Markets Debt A F $ 82.53 - 0.03 0.00

Emerging Markets Domestic Debt AX F £ 16.16 - -0.01 5.42

Emerging Markets Equity A F $ 38.10 - 0.18 0.00

Euro Bond A F € 13.99 - 0.02 0.00

Euro Corporate Bond AX F £ 22.96 - 0.06 4.62

Euro Liquidity A F € 12.89 - 0.00 0.00

Euro Strategic Bond A F € 38.29 - 0.05 0.00

European Currencies High Yield Bd A F € 18.40 - 0.04 0.00

European Equity Alpha A F € 32.75 - -0.05 0.00

European Property A F € 22.30 - -0.10 0.00

Fund Bid Offer D+/- Yield

Eurozone Equity Alpha A F € 8.06 - 0.00 0.00

Global Bond A F $ 40.59 - 0.12 0.00

Global Brands A F $ 77.26 - -0.11 0.00

Global Convertible Bond A F $ 35.88 - 0.07 0.00

Global Property A F $ 23.73 - 0.00 0.00

Indian Equity A F $ 26.33 - -0.08 0.00

Latin American Equity A F $ 67.33 - 0.37 0.00

Short Maturity Euro Bond A F € 20.04 - 0.01 0.00

US Dollar Liquidity A F $ 13.03 - 0.00 0.00

US Growth A F $ 40.72 - 0.03 0.00

US Growth AH F € 28.33 - 0.02 0.00

US Growth AX F £ 25.25 - -0.01 0.00

US Property A F $ 52.52 - -0.26 0.00

Morgens Waterfall Vintiadis.co IncOther International Funds

Phaeton Intl (BVI) Ltd (Est) $ 384.99 - -1.01 0.00

Natixis International Funds (Lux) I SICAV (LUX)Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA 0044 20 3216 9000FSA Recognised

Absolute Asia AM Pac Rim Eq Fd IA $ 97.41 97.41 -0.14 0.00

ASG Laser Fund I/A (USD) H $ 1168.62 1168.62 1.26 0.00

Harris Associates Global Value Fund H € 168.34 168.34 0.45 0.00

Harris Associates US Large Cap Value Fund $ 156.60 156.60 0.06 0.00

Loomis Sayles Emerging Debt & Currencies Fund IA $ 164.00 164.00 0.23 0.00

Loomis Sayles Global Credit Fund I/A (USD) H $ 144.61 144.61 0.01 0.00

Loomis Sayles US Large Cap Value $ 101.60 101.60 -0.23 0.00

Vaughan Nelson US Small Cap Val Fund IA $ 194.24 194.24 -0.55 0.00

Natixis International Funds (Dublin) I plc (IRL)Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA +44 (0)20 3216 9000Regulated

Loomis Sayles Global Opportunist Bond Fund H-S/D GBP £ 10.89 10.89 0.00 5.44

Loomis Sayles Multisector Inc Fd I USD $ 13.62 13.62 0.01 5.65

Loomis Sayles Inst High Inc Fd I USD $ 8.39 8.39 0.01 9.98

Loomis Sayles Global Opportunist Bond Fd I USD $ 14.33 14.33 0.00 5.91

Natwest (IRL)Guild Hse PO Box 4935 Guild St, IFSC, Dublin 100353 1 642 8400FSA Recognised

Series 10

Absolute Rtn Multi Asset Prog SER 10 GBP F £ 9.80 - 0.04 0.00

Nevsky Capital LLP (IRL)10 Old Burlington Street W1S 3AG +44(0)20 7360 8888FSA Recognised

Traditional Funds Plc

Eastern European $ 82.08 - 0.43 0.00

Nevsky Capital LLPOther International Funds

Nevsky Fund Plc EUR Acc € 1129.13 - 9.21 0.00

Nevsky Fund Plc GBP Acc £ 1136.02 - 9.27 0.00

Nevsky Fund Plc USD Acc $ 1145.53 - 9.38 0.00

New Capital Fund Management Ltd (IRL)Leconfield House, Curzon Street, London, W1J 5JBFSA Recognised

New Capital UCITS Funds

Asia Pacific Bond Fd USD $ 126.62 - 0.29 0.00

Asia Pacific Bond USD CNY Hedged $ 113.71 - 0.33 -

Asia Pacific Equity Fund USD Class A $ 109.05 - 0.66 2.38

Asia Pacific Equity Fund EUR Class B € 106.18 - 0.62 2.65

Asia Pacific Equity Fund GBP Class C £ 107.73 - 0.64 2.50

Asia Pacific Equity Fund CNY USD Hedged Class F $ 112.96 - 0.75 2.32

Asia Pacific Equity Inc SGD Class D S$ 121.10 - 0.72 1.16

Asia Pacific Equity Inc USD I Class D $ 121.93 - 0.73 1.43

Dynamic European Equity EUR Cls D € 120.54 - -0.19 1.06

Dynamic European Equity GBP Cls D £ 128.38 - -0.19 1.10

Dynamic European Equity USD Cls D $ 121.10 - -0.19 1.01

Total Return Bond USD Cls $ 158.08 - 0.10 0.00

Total Return Bond EUR Cls € 149.12 - 0.08 0.00

Total Return Bond GBP Cls £ 166.97 - 0.10 0.00

Total Return Bond Fund Canadian Dollar Class C$ 109.92 - 0.08 0.00

Total Return Bond Fund CHF SFr 113.59 - 0.05 0.00

Total Return Bond Fund INR Hdg R $ 117.19 - 0.43 -

Total Return Bond Fund USD $ 120.22 - 0.16 -

Total Return Bond Fund USD I $ 115.45 - 0.07 0.00

Total Return Bond GBP Distributor Class £ 117.22 - 0.07 4.18

US Growth Class A USD $ 120.59 - -0.24 0.00

US Growth Class B EUR € 116.40 - -0.24 0.00

US Growth Class C GBP £ 118.94 - -0.23 0.00

US Growth Class D CHF SFr 118.72 - -0.26 0.00

US Growth Class I USD $ 108.94 - -0.22 0.00

Wealthy Nations Bond USD Cls A $ 118.73 - 0.05 4.64

Wealthy Nations Bond EUR Cls B € 115.50 - 0.04 5.05

Wealthy Nations Bond GBP Cls C £ 117.82 - 0.05 4.76

Wealthy Nations Bond CHF Cls DSFr 114.20 - 0.03 2.26

Wealthy Nations Bond EUR Cls D € 114.82 - 0.04 2.02

Wealthy Nations Bond GBP Cls D £ 118.47 - 0.05 4.55

Wealthy Nations Bond CHF Cls ESFr 114.28 - 0.04 4.99

Wealthy Nations Bond INR Hdg Cls D $ 116.01 - 0.33 1.70

Wealthy Nations Bond INR Hdg I Cls D $ 116.06 - 0.34 2.26

Wealthy Nations Bond NOK Cls DNKr 116.96 - 0.05 2.16

Wealthy Nations Bond USD Cls D $ 115.72 - 0.05 1.94

Wealthy Nations Bond USD CNY Hedged Class F $ 117.82 - 0.11 4.13

Wealthy Nations Bond SGD Class G S$ 167.03 - 0.07 4.54

Wealthy Nations Bond Class H S$ 110.55 - 0.05 4.84

Wealthy Nations Bond Class I $ 115.18 - 0.12 4.16

New Capital Alternative Strategies

All Weather Fd USD Cls $ 112.08 - 0.02 -

All Weather Fd EUR Cls € 102.13 - -0.05 0.00

All Weather Fd GBP Cls £ 109.09 - 0.04 0.00

Tactical Opps USD Cls $ 101.57 - 2.27 0.00

Tactical Opps EUR Cls € 83.90 - 1.84 0.00

Tactical Opps GBP Cls £ 93.64 - 2.08 0.00

Newton Fund Mgrs (CI) Ltd (1200)F (JER)PO Box 189, St Helier, Jersey, JE4 9RU 01534 709130FSA Recognised

Newton Offshore Strategy Fund Ltd

UK Equity £ 1.6977 - -0.0069 1.92

Global Equity £ 1.4325 - 0.0002 1.89

Global Balanced £ 1.1697 - -0.0002 2.14

Global Balanced (Accumulation) £ 1.2827 - -0.0003 2.10

Bridge £ 1.3718 - 0.0004 1.97

Sterling Fixed Interest Class £ 0.8616 - 0.0016 3.97

Global Fixed Interest Class £ 1.0585 - 0.0008 4.42

Diversified Assets £ 1.1361 - -0.0014 2.91

Nordea 1, SICAV (LUX)E-Mail: nordeafunds@nordea.lu, Phone: +352 43 39 50 0FSA Recognised

Emerging Consumer Fund F € 16.28 - -0.04 0.00

European Alpha Fund F € 8.40 - 0.06 0.00

European Value Fund € 40.46 - 0.08 0.00

Far Eastern Equity Fund $ 18.78 - 0.18 0.00

Latin American Equity Fund € 11.90 - 0.03 0.00

Nordic Equity Fund € 56.14 - 0.11 0.00

North American Growth Fund H $ 8.62 - -0.07 0.00

North American Value Fund $ 31.36 - 0.09 0.00

European High Yield Bond Fund F € 24.00 - -0.21 0.00

Global Stable Equity Fund F € 10.33 - 0.02 0.00

Heracles Long/Short MI Fund - AP - EUR F € 52.56 - 0.26 0.00

Full fund performance data atwww.ft.com/funds MANAGED FUNDS SERVICE

DECEMBER 14 2012 Section:Stats Time: 13/12/2012 - 19:02 User: sheehanr Page Name: UT5 EUR, Part,Page,Edition: EUR, 20, 1

FINANCIAL TIMES FRIDAY DECEMBER 14 2012 ★ 21

Fund Bid Offer D+/- Yield

Northwest Investment Management (HK) Ltd11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373Other International Funds

Northwest $ class $ 1744.68 - -14.20 0.00

Northwest China Opps $ class $ 2276.89 - -21.80 0.00

Northwest China Opps € class € 2229.43 - -20.67 0.00

Northwest Warrant $ class $ 487.39 - -31.16 0.00

Oasis Crescent Management Company LtdOther International Funds

Oasis Crescent Equity Fund R 7.67 - 0.02 0.41

Oasis Global Mgmt Co (Ireland) Ltd (IRL)Regulated

Oasis Global Investment (Ireland) Plc

Oasis Global Equity $ 21.04 - 0.10 0.68

Oasis Crescent Global Investment Fund (Ireland) plc

Oasis Crescent Global Equity Fund $ 21.20 - 0.10 0.62

OasisCresGl Income Class A $ 10.95 - 0.00 2.62

OasisCresGl LowBal D ($) Dist $ 10.57 - 0.02 3.15

OasisCresGl Med Eq Bal A ($) Dist $ 10.26 - 0.02 -

Oasis Crescent Gbl Property Eqty $ 8.35 - 0.02 3.00

Odey Asset Management LLP (CYM)Regulated

OEI MAC Inc A £ 318.57 - 15.35 0.00

OEI Mac Inc B £ 175.45 - 7.75 0.00

OEI MAC Inc USD $ 1760.20 - 85.22 0.00

Odey European Inc EUR € 701.41 - 26.96 0.00

Odey European Inc A GBP £ 266.36 - 10.21 0.00

Odey European Inc B GBP £ 151.22 - 5.85 0.00

Odey European Inc USD $ 327.29 - 12.09 0.00

Giano Capital EUR Inc € 3997.70 - 0.10 0.00

Odey Asset Management LLP (IRL)FSA Recognised

Odey OEAF EUR A Class € 103.96 - 0.07 0.00

Odey OEAF GBP D Class £ 120.33 - 0.37 0.00

Odey Pan European € 237.17 - 0.97 0.00

Odey Pan European GBP D £ 154.06 - 0.99 0.00

Odey Allegra STG A £ 97.32 - 0.63 0.00

Odey Allegra USD $ 117.44 - 0.86 0.00

Odey Allegra European EUR € 166.11 - 0.13 0.00

Odey Allegra European EUR I F € 162.52 - 0.12 0.00

Odey Allegra European USD $ 166.56 - 0.65 0.00

Odey Allegra European GBP £ 192.69 - 0.59 0.00

Odey Allegra European GBP I £ 160.68 - 0.52 -

Odey Allegra International GBP Class £ 144.71 - 0.94 0.00

Odey Allegra International GBP D Inc F £ 131.10 - 0.85 0.00

Odey Allegra International Euro Class € 114.47 - 0.48 0.00

Odey Allegra International Euro I Class € 105.41 - 0.44 0.00

Odey Investments Plc (IRL)Regulated

Odey Giano European Fund EUR € 102.79 - -0.18 0.00

Odey Giano European Fund GBP £ 102.58 - -0.22 0.00

Odey Giano European Fund USD $ 103.59 - -0.18 -

Odey Odyssey Fund USD $ 110.50 - 0.92 0.00

Odey Odyssey Fund GBP I £ 110.18 - 0.91 0.12

Odey Odyssey Fund GBP R £ 109.59 - 0.94 0.00

Odey Odyssey Fund EUR € 99.35 - 0.95 -

Odey Wealth Management (CI) Ltd (IRL)FSA Recognised

ODEY OPPORTUNITY CHF SFr 102.95 - 0.11 0.00

ODEY OPPORTUNITY CHF I SFr 103.28 - 0.13 0.00

ODEY OPPORTUNITY EUR € 120.46 - 0.14 0.00

ODEY OPPORTUNITY EUR I € 180.41 - 0.21 0.00

ODEY OPPORTUNITY GBP I R £ 199.22 - 0.24 0.00

ODEY OPPORTUNITY GBP R £ 128.09 - 0.16 0.00

ODEY OPPORTUNITY NOK NKr 109.20 - 0.13 0.00

ODEY OPPORTUNITY NOK I NKr 111.77 - 0.12 0.00

ODEY OPPORTUNITY USD $ 127.37 - 0.15 0.00

ODEY OPPORTUNITY USD I $ 189.78 - 0.24 0.00

Omnia Fund LtdOther International Funds

Estimated NAV $ 483.67 - 33.57 -

Optima Fund ManagementOther International Funds

Optima Fd NAV $ 76.44 - 0.64 0.00

Optima Discretionary Macro Fund Limited $ 82.29 - 0.32 0.00

The Dorset Energy Fd Ltd NAV $ 41.93 - -0.65 0.00

Platinum Fd Ltd $ 70.01 - 0.74 0.00

Platinum Fd Ltd EUR € 13.86 - 0.14 0.00

Platinum Japan Fd Ltd $ 33.76 - 0.63 0.00

Optima Emerging Markets Fd Ltd $ 14.26 - 0.06 0.00

Optima Partners Global Fd $ 12.30 - 0.14 0.00

Optima Partners Focus Fund A $ 12.24 - 0.35 0.00

Cuttyhunk II Limited Unrestricted USD Acc NAV $ 1178.85 - 7.47 0.00

Orbis Investment Management Ltd (BMU)Regulated

Orbis Global Equity $ 122.61 - 0.88 0.00

Orbis Optimal (US$) $ 72.21 - 0.21 0.00

Orbis Optimal (Euro) € 24.25 - 0.07 0.00

Orbis Optimal (Yen) ¥ 971.00 - 3.00 0.00

Orbis Leveraged (US$) $ 114.67 - 0.57 0.00

Orbis Leveraged (Euro) € 37.52 - 0.18 0.00

Orbis Leveraged (Yen) ¥ 897.00 - 4.00 0.00

Orbis Japan Equity (US$) $ 23.69 - 0.15 0.00

*Orbis Prices as of December 6th

Orbis Sicav (LUX)Regulated

Orbis Japan Equity (Yen) ¥ 2270.00 - 15.00 0.00

Orbis Japan Equity (Euro) € 15.37 - 0.10 0.00

Orbis Asia ex-Japan - Investor Shares $ 18.06 - -0.13 0.00

Orbis Global Equity - Investor Shares € 93.09 - 0.91 0.00

Orbit Asset ManagementOther International Funds

Orbit Global Strategy $ 146.40 - 0.98 0.00

Orbit Euro Strategies € 127.65 - 0.93 0.00

Oryx International Growth Fund LtdOther International Funds

NAV (Fully Diluted) £ 3.40 - 0.23 0.00

PFPC International LtdOther International Funds

Intl Dollar Reserve A $ 1.00 - 0.00 0.05

Intl Dollar Reserve B $ 1.00 - 0.00 0.03

Intl Dollar Reserve Bear $ 1.00 - 0.00 0.03

Permal Investment Mgmt Svcs Ltdwww.permal.comOther International Funds

Offshore Fund Class A US $ Shares

Investment Holdings N.V. $ 4654.20 - 83.19 -

Macro Holdings Ltd $ 4047.96 - 31.69 -

Fixed Income Holdings N.V. $ 425.17 - 4.04 -

LUX Advantage Multi-Strategy Fund $ 1406.92 - 30.54 -

LUX Natural Resources $ 1300.76 - 4.21 -

Strategic Allocation A $ 1268.22 - 13.66 -

Pictet Funds (Europe) SA (LUX)15, Avenue J.F. Kennedy L-1855 LuxembourgTel: 0041 58 323 3000FSA Recognised

Pictet-Absl Rtn Glo Cons-I EUR F € 107.96 - -0.11 0.00

Pictet-Absl Rtn Glo Cons-P EUR F € 105.58 - -0.11 0.00

Pictet-Absl Rtn Glo Cons-Pdy EUR F € 101.76 - -0.11 0.61

Pictet-Absl Rtn Glo Div-I EUR F € 125.05 - -0.07 0.00

Fund Bid Offer D+/- Yield

Pictet-Absl Rtn Glo Div-P EUR F € 120.12 - -0.07 0.00

Pictet-Absl Rtn Glo Div-Pdy EUR F € 115.94 - -0.08 0.29

Pictet-Absl Rtn Glo Div-R EUR F € 116.14 - -0.07 0.00

Pictet-AbsRetGloDiv-HI CHF F SFr 181.00 - -0.10 0.00

Pictet-AbsRetGloDiv-HI GBP F £ 105.35 - -0.06 0.00

Pictet-AbsRetGloDiv-HI JPY F ¥ 13878.00 - -8.00 0.00

Pictet-AbsRetGloDiv-HI USD F $ 158.29 - -0.10 0.00

Pictet-AbsRetGloDiv-HP CHF F SFr 173.84 - -0.11 0.00

Pictet-AbsRetGloDiv-HPdy GBP F £ 97.86 - -0.05 0.22

Pictet-AbsRetGloDiv-HP USD F $ 152.03 - -0.10 0.00

Pictet-Agriculture-I EUR F € 151.80 - -0.12 0.00

Pictet-Agriculture-I USD F $ 198.19 - 0.30 0.00

Pictet-Agriculture-P EUR F € 147.38 - -0.12 0.00

Pictet-Agriculture-P dy EUR F € 147.39 - -0.12 0.00

Pictet-Agriculture-P dy GBP F £ 119.35 - 0.28 0.00

Pictet-Agriculture-P dy USD F $ 192.43 - 0.28 0.00

Pictet-Agriculture-R EUR F € 143.77 - -0.12 0.00

Pictet-Agriculture-R USD F $ 187.72 - 0.27 0.00

Pictet-Agriculture-P USD F $ 192.43 - 0.28 0.00

Pictet-Asian Equities Ex Japan-I USD F $ 189.19 - 0.35 0.00

Pictet-Asian Equities Ex Japan-P USD F $ 175.71 - 0.32 0.00

Pictet-Asian Equities Ex Japan-P dy USD F $ 172.12 - 0.31 0.15

Pictet-Asian Equities Ex Japan-HI EUR F € 123.48 - 0.22 0.00

Pictet-Asian Local Currency Debt-I EUR F € 122.57 - -1.18 0.00

Pictet-Asian Local Currency Debt-I USD F $ 160.04 - -1.17 0.00

Pictet-Asian Local Currency Debt-P EUR F € 117.52 - -1.13 0.00

Pictet-Asn Lcl Ccy Dbt-Pdy USD F $ 131.00 - -0.96 2.65

Pictet-Asn Lcl Ccy Dbt-Pdy GBP F £ 82.52 - -0.53 2.68

Pictet-Biotech-P USD $ 372.04 - -0.89 0.00

Pictet-Biotech-P dy GBP F £ 230.74 - -0.73 0.00

Pictet-Biotech-HP EUR F € 275.92 - -0.68 0.00

Pictet-Biotech-I USD F $ 407.27 - -0.97 0.00

Pictet-Biotech-P dy USD F $ 371.87 - -0.89 0.00

Pictet-CHF Liquidity-P F SFr 124.29 - -0.01 0.00

Pictet-Clean Energy-I EUR F € 50.07 - -0.10 0.00

Pictet-Clean Energy-I USD F $ 65.37 - 0.01 0.00

Pictet-Clean Energy-P EUR F € 47.79 - -0.10 0.00

Pictet-Clean Energy-P USD F $ 62.40 - 0.02 0.00

Pictet-Clean Energy-P dy USD F $ 62.40 - 0.01 0.00

Pictet-Clean Energy-P dy GBP F £ 38.70 - 0.04 0.00

Pictet-Convertible Bonds-I EUR F € 96.93 - 0.22 0.00

Pictet-Convertible Bonds-P EUR F € 94.57 - 0.22 0.00

Pictet-Convertible Bonds-P dy EUR F € 93.36 - 0.21 0.49

Pictet-Convertible Bonds-R EUR F € 92.24 - 0.21 0.00

Pictet-Digital Communication-I EUR F € 123.09 - 0.12 0.00

Pictet-Digital Communication-I USD F $ 160.72 - 0.52 0.00

Pictet-Digital Communication-P EUR F € 112.02 - 0.11 0.00

Pictet-Digital Communication-P USD $ 146.26 - 0.47 0.00

Pictet-Digital Communication-P dy USD F $ 141.06 - 0.46 0.00

Pictet-Digital Communication-P dy GBP F £ 88.53 - 0.36 0.00

Pictet-Digital Communication-R EUR F € 103.30 - 0.10 0.00

Pictet-Eastern Europe-I EUR F € 377.81 - 3.42 0.00

Pictet-Eastern Europe-P EUR F € 363.69 - 3.29 0.00

Pictet-Eastern Europe-P dy EUR F € 359.23 - 3.25 0.00

Pictet-Eastern Europe-P dy GBP F £ 290.66 - 3.32 0.00

Pictet-Em Lcl Ccy Dbt-HI EUR F € 138.26 - 1.43 0.00

Pictet-Em Lcl Ccy Dbt-HP EUR F € 132.63 - 1.37 0.00

Pictet-Em Lcl Ccy Dbt-I EUR F € 161.01 - 1.17 0.00

Pictet-Em Lcl Ccy Dbt-I USD F $ 209.96 - 2.18 0.00

Pictet-Em Lcl Ccy Dbt-P EUR F € 154.40 - 1.12 0.00

Pictet-Em Lcl Ccy Dbt-P USD F $ 201.34 - 2.09 0.00

Pictet-Em Lcl Ccy Dbt-Pdy USD F $ 146.10 - 1.52 5.27

Pictet-Em Lcl Ccy Dbt-Pdy GBP F £ 93.31 - 0.89 5.30

Pictet-Emerging Markets-I USD F $ 554.15 - 2.16 0.00

Pictet-Emerging Markets-P USD $ 521.47 - 2.03 0.00

Pictet-Emerging Markets-P EUR F € 399.37 - 0.64 0.00

Pictet-Emerging Markets-P dy USD F $ 516.11 - 2.01 0.00

Pictet-Emerging Markets Index-I USD F $ 255.63 - 1.64 0.00

Pictet-Emerging Markets Index-IS USD F $ 254.31 - 1.62 0.00

Pictet-Emerging Markets Index-P dy USD F $ 226.43 - 1.45 1.65

Pictet-Emerging Markets Index-R USD F $ 242.03 - 1.54 0.00

Pictet-Emerging Markets Index-P USD $ 249.91 - 1.59 0.00

Pictet-Emerging Markets Index-R dy GBP F £ 144.40 - 0.81 1.38

Pictet-EUR Bonds-HI CHF F SFr 641.36 - 0.57 0.00

Pictet-EUR Bonds-HP CHF F SFr 615.90 - 0.55 0.00

Pictet-EUR Bonds-I F € 477.02 - 0.43 0.00

Pictet-EUR Bonds-P F € 458.13 - 0.41 0.00

Pictet-EUR Bonds-P dy F € 303.99 - 0.27 3.19

Pictet-EUR Corporate Bonds-HI USD F $ 205.57 - 0.09 0.00

Pictet-EUR Corporate Bonds-HI CHF FSFr 241.74 - 0.10 0.00

Pictet-EUR Corporate Bonds-HP USD F $ 196.29 - 0.08 0.00

Pictet-EUR Corporate Bonds-HP CHF FSFr 230.87 - 0.09 0.00

Pictet-EUR Corporate Bonds-I F € 179.97 - 0.07 0.00

Pictet-EUR Corporate Bonds-P F € 171.79 - 0.07 0.00

Pictet-EUR Corporate Bonds-P dy F € 104.14 - 0.04 3.55

Pictet-EUR Government Bonds-P dy F € 105.17 - 0.19 3.24

Pictet-EUR High Yield-HI CHF F SFr 281.14 - 0.63 0.00

Pictet-EUR High Yield-HP CHF F SFr 266.09 - 0.59 0.00

Pictet-EUR High Yield-I F € 207.78 - 0.46 0.00

Pictet-EUR High Yield-P F € 196.65 - 0.44 0.00

Pictet-EUR High Yield-P dy F € 90.15 - 0.20 5.60

Pictet-EUR Inflation Linked Bonds-P dy F € 109.47 - -0.03 1.31

Pictet-EUR Short Mid-Term Bonds-HI CHF FSFr 114.47 - 0.08 0.00

Pictet-EUR Short Mid-Term Bonds-HP CHF FSFr 112.27 - 0.08 0.00

Pictet-EUR Short Mid-Term Bonds-P F € 128.92 - 0.09 0.00

Pictet-EUR Short Mid-Term Bonds-I F € 131.26 - 0.09 0.00

Pictet-EUR Short Mid-Term Bonds-P dy F € 89.48 - 0.06 3.31

Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 103.38 - 0.00 0.00

Pictet-EUR Sov.Sht.Mon.Mkt EUR P € 102.88 - 0.00 0.00

Pictet-EUR Sov.Sht.Mon.Mkt EUR Pdy € 99.96 - -0.01 0.17

Pictet-European Sust Eq-P EUR F € 157.73 - -0.08 0.00

Pictet-Europe Index-I EUR F € 123.15 - 0.08 0.00

Pictet-Europe Index-IS EUR F € 123.02 - -0.58 0.00

Pictet-Europe Index-P EUR € 121.76 - 0.08 0.00

Pictet-Europe Index-P dy EUR F € 101.22 - 0.07 2.46

Pictet-Europe Index-R dy GBP F £ 86.36 - -0.21 2.39

Pictet-Euroland Index-P dy EUR F € 76.97 - 0.16 3.13

Pictet-Euroland Index-R dy GBP F £ 66.12 - 0.29 2.98

Pictet-European Equity Selection-I EUR F € 516.01 - -0.45 0.00

Pictet-European Equity Selection-P EUR F € 490.68 - -0.44 0.00

Pictet-Eu Equities Sel-Pdyistr F € 450.32 - -0.40 0.60

Pictet-Europe Index-R EUR F € 118.09 - -0.56 0.00

Pictet-European Sust Eq-I EUR F € 164.62 - -0.08 0.00

Pictet-European Sust Eq-Pdy EUR F € 138.66 - -0.07 1.60

Pictet-Generics-I USD F $ 161.81 - -1.13 0.00

Pictet-Generics-P USD F $ 151.46 - -1.06 0.00

Pictet-Generics-P dy GBP F £ 93.91 - -0.57 0.00

Pictet-Generics-P dy USD F $ 151.41 - -1.06 0.00

Pictet-World Government Bonds-P USD $ 188.34 - -0.38 0.00

Pictet-World Government Bonds-P dy USD $ 141.97 - -0.29 2.41

Pictet-Global Emerging Debt-P USD F $ 326.48 - -0.04 0.00

Pictet-Global Emerging Debt-P dy USD F $ 183.32 - -0.03 4.59

Pictet-Global Emerging Currencies-I EUR F € 83.79 - -0.16 0.00

Pictet-Global Emerging Currencies-I USD F $ 109.75 - 0.14 0.00

Pictet-Global Emerging Currencies-HI EUR F € 68.95 - 0.09 0.00

Pictet-Global Emerging Currencies-HP EUR F € 67.46 - 0.08 0.00

Pictet-Global Emerging Currencies-P EUR F € 81.98 - -0.16 0.00

Pictet-Global Emerging Currencies-P USD F $ 107.34 - 0.12 0.00

Pictet-Global Em Ccy-Pdy USD F $ 96.96 - 0.12 2.73

Pictet-Global Emerging Debt-HP EUR F € 232.81 - -0.03 0.00

Pictet-Global Emerging Debt-HP CHF FSFr 376.31 - -0.05 0.00

Pictet-Global Emerging Debt-HI EUR F € 244.52 - -0.03 0.00

Pictet-Global Emerging Debt-HI CHF FSFr 397.97 - -0.05 0.00

Pictet-Global Emerging Debt-I USD F $ 345.17 - -0.04 0.00

Pictet-Global Megatrend Selection-I USD F $ 165.06 - -0.17 0.00

Pictet-Global Megatrend Selection-I EUR F € 126.42 - -0.42 0.00

Pictet-Global Megatrend Selection-P USD F $ 159.49 - -0.17 0.00

Pictet-Global Megatrend Selection-P CHF FSFr 147.77 - -0.75 0.00

Pictet-Global Megatrend Selection-P EUR F € 122.16 - -0.42 0.00

Pictet-Glo Megatrend Sel-Pdy EUR F € 122.15 - -0.41 0.00

Pictet-Glo Megatrend Sel-Pdy GBP F £ 98.91 - -0.02 0.00

Pictet-Glo Megatrend Sel-Pdy USD F $ 159.49 - -0.17 0.00

Pictet-Global Megatrend Selection-R EUR F € 117.71 - -0.40 0.00

Pictet-Global Megatrend Selection-R USD F $ 153.69 - -0.17 0.00

Pictet-Greater China-I USD F $ 409.30 - -0.59 0.00

Pictet-Greater China-P USD F $ 381.85 - -0.56 0.00

Pictet-Greater China-P dy USD F $ 368.34 - -0.54 0.24

Pictet-Greater China-P dy GBP F £ 227.67 - -0.13 0.24

Pictet-High Dividend Sel I EUR F € 114.04 - -0.10 0.00

Pictet-High Dividend Sel P CHF F SFr 135.27 - -0.20 0.00

Pictet-High Dividend Sel P EUR F € 111.66 - -0.10 0.00

Pictet-High Dividend Sel P USD F $ 145.60 - 0.32 0.00

Pictet-High Dividend Sel Pdm GBP F £ 82.34 - 0.13 3.94

Pictet-High Dividend Sel Pdm USD F $ 131.59 - 0.30 3.92

Pictet-High Dividend Sel Pdy EUR F € 101.40 - -0.09 3.81

Pictet-High Dividend Sel R EUR F € 109.80 - -0.10 0.00

Pictet-High Dividend Sel Rdm EUR F € 99.14 - -0.08 4.04

Pictet-Indian Equities-I USD F $ 328.85 - -2.09 0.00

Pictet-Indian Equities-P USD F $ 307.20 - -1.97 0.00

Pictet-Indian Equities-P dy USD F $ 307.20 - -1.97 0.00

Pictet-Indian Equities-P dy GBP F £ 190.52 - -1.06 0.00

Pictet-Japan Index-I JPY F ¥ 8178.82 - 87.40 0.00

Pictet-Japan Index-IS JPY F ¥ 8286.79 - 88.55 0.00

Pictet-Japan Index-P JPY F ¥ 8085.40 - 86.38 0.00

Fund Bid Offer D+/- Yield

Pictet-Japan Index-P dy JPY F ¥ 7388.51 - 78.93 1.68

Pictet-Japan Index-R dy GBP F £ 56.36 - 0.29 1.55

Pictet-Japanese Equities Opp-P JPY F ¥ 4466.01 - 42.68 0.00

Pictet-Japanese Equities Opp-I JPY F ¥ 4697.98 - 44.97 0.00

Pictet-Japanese Equities Opp-P dy JPY F ¥ 4425.45 - 42.29 0.00

Pictet-Japanese Equity Selection-I JPY F ¥ 7394.96 - 73.29 0.00

Pictet-Japanese Equity Selection-P JPY F ¥ 7041.19 - 69.67 0.00

Pictet-Japanese Eq Sel-Pdy GBP F £ 51.51 - 0.22 0.39

Pictet-Japanese Eq Sel-Pdy JPY F ¥ 6908.72 - 68.36 0.37

Pictet-LATAM Lc Ccy Dbt-Pdy GBP F £ 69.81 - -0.04 6.66

Pictet-LATAM Lc Ccy Dbt-I EUR F € 120.42 - -0.36 0.00

Pictet-LATAM Lc Ccy Dbt-I USD F $ 155.72 - 0.03 0.00

Pictet-LATAM Lc Ccy Dbt-P EUR F € 116.64 - -0.35 0.00

Pictet-LATAM Lc Ccy Dbt-P USD F $ 150.81 - 0.02 0.00

Pictet-LATAM Lc Ccy Dbt-Pdy USD F $ 108.88 - 0.01 6.53

Pictet-LATAM Lc Ccy Dbt-R EUR F € 113.40 - -0.34 0.00

Pictet-LATAM Lc Ccy Dbt-R USD F $ 146.68 - 0.03 0.00

Pictet-Pacific Ex Japan Index-P USD F $ 342.14 - -0.03 0.00

Pictet-Pacific Ex Japan Index-I USD F $ 346.17 - -0.02 0.00

Pictet-Pacific Ex Japan Index-IS USD F $ 345.61 - -1.75 0.00

Pictet-Pacific Ex Japan Index-P dy USD F $ 271.04 - -0.02 3.36

Pictet-Pacific Ex Japan Index-R USD F $ 333.08 - -1.70 0.00

Pictet-Pacific Ex Japan Index-R dy GBP F £ 184.07 - -0.77 3.14

Pictet-Premium Brands-I EUR F € 116.37 - -0.86 0.00

Pictet-Premium Brands-I USD F $ 151.96 - -0.76 0.00

Pictet-Premium Brands-P EUR € 105.96 - -0.78 0.00

Pictet-Premium Brands-P USD F $ 138.34 - -0.70 0.00

Pictet-Premium Brands-P dy EUR F € 105.89 - -0.78 0.00

Pictet-Premium Brands-P dy GBP F £ 85.75 - -0.36 0.00

Pictet-Russian Equities-P USD F $ 64.66 - 0.74 0.00

Pictet-Russian Equities-P dy GBP F £ 39.84 - 0.43 0.00

Pictet-Russian Equities-I EUR F € 51.67 - 0.43 0.00

Pictet-Russian Equities-I USD F $ 67.38 - 0.77 0.00

Pictet-Russian Equities-P EUR F € 49.59 - 0.42 0.00

Pictet-Russian Equities-P dy USD F $ 64.20 - 0.73 0.00

Pictet-Security-I EUR F € 106.76 - -0.49 0.00

Pictet-Security-I USD F $ 139.39 - -0.32 0.00

Pictet-Security-P EUR F € 101.44 - -0.47 0.00

Pictet-Security-P USD F $ 132.45 - -0.31 0.00

Pictet-Security-P dy USD F $ 132.45 - -0.31 0.00

Pictet-Security-P dy GBP F £ 82.14 - -0.13 0.00

Pictet-Security-R EUR F € 97.18 - -0.46 0.00

Pictet-Security-R USD F $ 126.89 - -0.30 0.00

Pictet-Small Cap Europe-I EUR F € 663.91 - 2.38 0.00

Pictet-Small Cap Europe-P EUR F € 621.56 - 2.22 0.00

Pictet-Small Cap Europe-P dy EUR F € 612.67 - 2.18 0.12

Pictet-ST.MoneyMkt-I € 140.20 - 0.00 0.00

Pictet-ST.MoneyMkt-ICHF SFr 125.29 - 0.00 0.00

Pictet-ST.MoneyMkt-P € 137.80 - 0.00 0.00

Pictet-ST.MoneyMkt-PCHF SFr 91.22 - 0.00 1.03

Pictet-ST.MoneyMkt-IUSD $ 134.18 - 0.00 0.00

Pictet-ST.MoneyMkt-PUSD $ 132.06 - 0.00 0.00

Pictet-ST.MoneyMkt-Pdy $ 84.32 - 0.00 0.58

Pictet-ST.MoneyMkt-Pdy € 95.60 - -0.01 1.18

Pictet-Timber-HP EUR F € 84.10 - 0.18 0.00

Pictet-Timber-I USD F $ 132.68 - 0.28 0.00

Pictet-Timber-I EUR F € 101.62 - -0.02 0.00

Pictet-Timber-P USD F $ 128.11 - 0.27 0.00

Pictet-Timber-P EUR F € 98.12 - -0.01 0.00

Pictet-Timber-P dy USD F $ 122.23 - 0.26 0.77

Pictet-Timber-P dy GBP F £ 75.81 - 0.22 0.79

Pictet-US Equity Growth Selection-I USD F $ 130.42 - -0.03 0.00

Pictet-US Equity Growth Selection-P USD F $ 125.23 - -0.03 0.00

Pictet-US Eq Gr Sel-Pdy USD F $ 125.22 - -0.04 0.00

Pictet-US Equity Growth Selection-R USD F $ 121.25 - -0.03 0.00

Pictet-US High Yield-HI CHF F SFr 136.17 - 0.17 0.00

Pictet-US High Yield-HI EUR F € 91.68 - 0.12 0.00

Pictet-US High Yield-HP CHF F SFr 133.73 - 0.17 0.00

Pictet-US High Yield-HP EUR F € 90.04 - 0.11 0.00

Pictet-US High Yield-I USD F $ 137.11 - 0.17 0.00

Pictet-US High Yield-P USD F $ 134.64 - 0.17 0.00

Pictet-US High Yield-P dy USD F $ 114.74 - 0.14 5.31

Pictet-US High Yield-R USD F $ 132.57 - 0.17 0.00

Pictet-USA Index-P USD $ 120.05 - 0.07 0.00

Pictet-USA Index-I USD F $ 121.50 - 0.07 0.00

Pictet-USA Index-IS USD F $ 122.75 - 0.68 0.00

Pictet-USA Index-P dy USD F $ 112.39 - 0.06 0.84

Pictet-USA Index-R USD F $ 117.19 - 0.65 0.00

Pictet-USA Index-R dy GBP F £ 70.72 - 0.34 0.64

Pictet-USD Government Bonds-I F $ 616.68 - -1.32 0.00

Pictet-USD Government Bonds-P F $ 595.08 - -1.28 0.00

Pictet-USD Government Bonds-P dy F $ 390.92 - -0.84 2.88

Pictet-USD Short Mid-Term Bonds-I F $ 127.52 - 0.02 0.00

Pictet-USD Short Mid-Term Bonds-P F $ 125.34 - 0.02 0.00

Pictet-USD Short Mid-Term Bonds-P dy F $ 97.36 - 0.02 1.73

Pictet-USD Sov.ST.Mon.Mkt-I $ 102.32 - 0.00 0.00

Pictet-USD Sov.ST.Mon.Mkt-P $ 101.93 - 0.00 0.00

Pictet-USD Sov.ST.Mon.Mkt-Pdy $ 99.94 - 0.00 0.02

Pictet-Water-HP USD F $ 217.58 - -0.46 0.00

Pictet-Water-HR USD F $ 201.50 - -0.44 0.00

Pictet-Water-I EUR F € 183.46 - -0.39 0.00

Pictet-Water-I USD F $ 239.54 - 0.04 0.00

Pictet-Water-P EUR € 167.23 - -0.36 0.00

Pictet-Water-P USD F $ 218.35 - 0.03 0.00

Pictet-Water-P dy EUR F € 164.24 - -0.36 0.14

Pictet-Water-P dy GBP F £ 133.56 - 0.14 0.15

Pictet-Water-R USD F $ 202.23 - 0.04 0.00

Pictet-Water-R EUR € 154.88 - -0.33 0.00

Pictet-World Government Bonds-I EUR F € 149.53 - -0.77 0.00

Pictet-World Government Bonds-I USD F $ 194.32 - -0.40 0.00

Pimco Fds: Global Investors Series Plc (IRL)PIMCO Europe Ltd,11 Baker Street,London W1U 3AHhttp://gisnav.pimco-funds.com/Dealing: +44 20 3640 1000PIMCO Funds: +44 (0)20 3640 1407FSA Recognised

CommoditiesPLUS111sp Strategy - Inst Acc $ 10.30 - 0.02 0.00

Diversified Income - Inst Acc $ 18.48 - 0.00 0.00

Emerging Local Bond - Inst Acc $ 14.88 - 0.03 0.00

Emerging Markets Bond - Inst Acc $ 39.87 - 0.00 0.00

Emerging Markets Corp.Bd Fund Inst Acc F $ 13.32 - 0.01 0.00

Emerging Markets Curr.Fd- Inst Acc $ 13.83 - 0.02 0.00

EuriborPLUS - Inv. Acc € 11.64 - 0.00 0.00

Euro Bond - Inst Acc € 19.47 - 0.01 0.00

Euro Credit - Inst Acc € 13.17 - 0.00 0.00

Euro Income Bond - Inst Acc F € 11.50 - 0.02 0.00

Euro Long Average Duration - Inst Acc € 17.05 - 0.01 0.00

Euro Real Return - Inst Acc € 12.70 - 0.01 0.00

Euro Ultra Long Duration - Inst Acc € 22.25 - 0.00 0.00

Global Advantage - Inst Acc $ 13.14 - 0.01 0.00

Global Bond - Inst Acc $ 25.35 - -0.01 0.00

Global Bond Ex-US - Inst Acc $ 17.23 - 0.01 0.00

Global High Yield Bond - Inst Acc $ 17.97 - 0.02 0.00

Global Investment Grade Credit - Inst Income $ 12.46 - 0.00 3.57

Global Multi-Asset - Inst Acc $ 14.41 - 0.01 0.00

Global Real Return - Inst Acc $ 17.75 - -0.03 0.00

High Yield Bond - Inst Acc $ 24.96 - 0.03 0.00

Low Average Duration - Inst Acc $ 14.49 - -0.01 0.00

PIMCO EqS Pathfinder.Eur.Fd Inst Acc F € 11.48 - 0.01 0.00

PIMCO EqS Pathfinder.Fd Inst Acc F $ 11.57 - 0.02 0.00

Socially Resp.Emerg.Mkts Bd Fd Inst Acc F $ 13.13 - 0.00 0.00

StocksPLUS{TM} - Inst Acc $ 15.26 - -0.03 0.00

Total Return Bond - Inst Acc $ 26.33 - -0.02 0.00

UK Corporate Bond - Inst Acc £ 14.80 - 0.02 0.00

UK Long Term Corp. Bnd Inst-Inst Acc £ 15.86 - 0.03 0.00

UK Sterling Inflation-Linked - Inst Acc £ 18.58 - -0.01 0.00

UK Sterling Long Average Duration - Inst Acc £ 18.24 - 0.03 0.00

UK Sterling Low Average Duration - Inst Acc £ 13.82 - -0.01 0.00

UK Total Return Bond - Inst Acc £ 13.63 - 0.00 0.00

Unconstrained Bond - Inst Acc $ 12.14 - -0.01 0.00

US Government Money Market - Inst Inc $ 1.00 - 0.00 0.04

Pioneer Alternative Inv Mgt (BMU)

Other International Funds

Pioneer Horizon Fund $ 117.37 - 0.13 0.00

Pioneer AssetMaster $ 852.10 - -7.67 0.00

Pioneer Div Fund I EUR € 102.58 - 0.01 -

Pioneer Div Fund I USD $ 103.04 - 0.07 -

The Meteor Opps I $ 135.14 - 0.07 0.00

The Meteor Opps I € 135.46 - -0.02 0.00

Platinum Capital Management LtdOther International Funds

Platinum Global Dividend Fund - A (Est) $ 58.77 - - -

Platinum All Star Fund - A (Est) $ 99.91 - - -

Platinum Dynasty $ 101.06 - - -

Platinum Essential Resources $ 9.36 - 0.36 0.00

Platinum Low Volatility Fund SICAV (Est) $ 9.29 - - -

Platinum Nordic SKr 520.91 - - -

Platinum Precious Metals € 10.62 - 0.02 -

Platinum Maverick Enhanced (Est) $ 68.57 - - -

Fund Bid Offer D+/- Yield

Platinum Gold Advantage (Est) € 11.88 - - -

Platinum Global Dividend UCITS Fund $ 73.81 - 0.34 0.00

Polar Capital Funds Plc (IRL)Regulated

Asian Financials Fund Cls A USD $ 268.30 268.30 1.50 0.59

European Market Neutral Fund Cls I Euro € 9.29 9.29 0.01 -

Financials Income Fund Cls B2 GBP Acc £ 1.25 1.25 0.00 0.00

Financial Opps I USD $ 9.90 - 0.06 0.00

GEM Growth I USD $ 10.04 - 0.03 0.00

GEM Income I USD $ 11.25 - 0.06 0.00

Global Alpha I USD $ 10.14 10.14 0.00 -

Global Insurance I GBP £ 2.49 - 0.01 0.00

Global Technology I USD $ 15.34 - -0.01 0.00

Healthcare Opps I USD $ 18.36 - -0.04 0.00

Japan Alpha I JPY ¥ 104.96 104.96 1.43 -

Japan I JPY ¥ 1097.89 - 14.30 0.00

North American I USD $ 11.69 11.69 0.03 0.00

UK ARF I GBP £ 9.88 - 0.00 0.00

Polar Capital LLP (CYM)Regulated

ALVA Convertible A USD $ 110.77 - 0.14 0.00

European Market Neutral Fund A EUR € 97.16 - -1.04 0.00

European Conviction A EUR € 154.53 - 0.00 0.00

European Forager A EUR € 152.44 - 0.08 0.00

Policy Selection LimitedOther International Funds

Assured USD A $ 120.68 - -0.02 0.00

Assured USD B $ 106.20 - -0.10 0.00

Assured USD C $ 114.72 - -0.06 0.00

Assured USD D $ 107.99 - -0.07 0.00

Assured F USD $ 72.93 - -0.11 0.00

Assured GBP B £ 94.77 - -1.82 0.00

Assured GBP C £ 89.99 - -1.69 0.00

Assured EUR D € 81.38 - -1.93 0.00

Assured EUR B € 74.68 - -1.75 0.00

Assured CHF E SFr 56.12 - -0.94 0.00

Polunin Capital Partners LtdOther International Funds

Developing Countries 'A' $ 34.42 - 0.67 0.00

Emerging Markets Active $ 25.53 - -0.15 -

Luxcellence Em Mkts Tech $ 734.52 - -0.38 0.00

Em Mkts Strategy Developing $ 749.10 - 0.39 0.00

Em Mkts Strategy Small Cap $ 1032.92 - 4.64 0.00

Polunin Discovery Funds - Frontier Markets Fund $ 1042.38 - 9.39 -

Private Fund Mgrs (Guernsey) Ltd (GSY)Regulated

Monument Growth £ 354.29 358.42 3.80 0.89

Prosperity Capital Management Ltd (CYM)Regulated

RPF A Shares $ 220.49 - - 0.00

RPF D $ 13.21 - 0.09 0.00

PQF B Shares $ 483.17 - 0.98 0.00

PCF $ 415.07 420.52 1.42 0.00

CAPF $ 7.67 - -0.24 0.00

Prusik Investment Management LLP (IRL)Enquiries - 0207 493 1331Regulated

Prusik Asian Equity Income B Dist $ 127.86 - -0.10 5.36

Prusik Asia A $ 168.98 - -0.10 0.00

Prusik Asian Smaller Cos A $ 151.26 - 0.27 0.00

Purisima Investment Fds (CI) Ltd (JER)Regulated

PCG B 125.37 - 0.16 0.00

PCG C 123.83 - 0.16 0.00

Putnam Investments (Ireland) Ltd (IRL)Regulated

Putnam New Flag Euro High Yield Plc - E € 1024.64 - 0.98 5.38

Putnam New Flag Euro High Yield Plc - M € 930.50 - 0.87 4.79

R & H Fund Services (Jersey) Ltd (JER)Regulated

Camber International Equity Growth Limited £ 12.45 - 0.15 0.45

BDP Limited

Bond Fund GBP £ 10.06 - 0.02 5.89

Income Fund Sterling £ 3.27 - 0.04 8.92

The Discretionary Pfolio £ 11.94 - -0.07 1.67

RBC Offshore Fund Managers Limited (GSY)Regulated

ARC Fund Ltd Class B $ 170.8861 - 2.8168 0.00

RBC Regent Strategy Fund Limited (JER)Regulated

Asia Pacific Equity Class B $ 150.74 - 0.41 0.00

Canadian Equity Class B C$ 153.46 - 0.83 0.09

European Equity Class B € 149.57 - -0.20 0.00

Intl Ex North America Equity Class B $ 118.51 - 0.46 0.00

UK Bond Class B £ 105.35 - -0.09 1.57

UK Equity Class B £ 160.45 - 0.30 0.00

US Dollar Capital Growth Class $ 13.08 - -0.02 0.04

US Equity Class $ 125.55 - 0.26 0.00

.For RMF Investment Management Funds see Man Investments

Robeco Asset Management (LUX)Coolsingel 120, 3011 AG Rotterdam, The Netherlands.tel (31)10 2242381 www.robeco.comFSA Recognised

Asia-Pacific Equities (EUR) € 95.25 - 0.15 0.00

Chinese Equities (EUR) € 55.24 - -0.07 0.00

Em Stars Equities (EUR) € 157.67 - -0.05 0.00

Emerging Markets Equities (EUR) € 141.52 - 0.46 0.00

Flex-o-Rente (EUR) € 108.07 - -0.08 0.00

Glob.Consumer Trends Equities (EUR) € 90.44 - -0.19 0.00

High Yield Bonds (EUR) € 111.57 - 0.14 0.00

Lux -O- Rente (EUR) € 128.15 - -0.12 0.00

Natural Ress Equities (EUR) € 85.04 - 0.25 0.00

New World Financials (EUR) € 34.65 - 0.11 0.00

SAM Sust. Agrib.Eq. D € 112.36 - -0.06 0.00

US Premium Equities (EUR) € 119.95 - 0.15 0.00

US Premium Equities (USD) $ 133.61 - 0.17 0.00

Royal Bank of Scotland (IRL)RBS Asset Management (Dublin) LimitedGuild Hse, PO Box 4935 Guild St, IFSC Dublin 1 00 353 1 642 8400FSA Recognised

RBSG Investment Programmes

RBSG Cont Eur Spec Equity Ser 3 € 91.94 - -0.03 0.81

RBSG UK Equity Index Programme Ser 3 £ 23.97 - 0.08 3.08

RBSG UK Specialist Eqty Ser 3 £ 17.55 - 0.02 0.92

RBSG UK Sovereign Bond Index Prog Ser 3 £ 14.56 - 0.00 3.11

RBSG Contl Eurp Eqty Index Prog Ser 3 € 282.96 - 0.15 1.93

RBSG Japan Specialist Equity Prog Ser 3 ¥ 3421.00 - 24.00 0.70

RBSG US Equity Index Programme Ser 3 $ 49.50 - 0.03 1.06

RBSG Pacific Basin Eqty Ser 3 $ 54.22 - 0.25 1.37

RBSG Emerging Markets Ser 3 $ 34.66 - 0.09 1.11

RBSG Global Investment Grade Bond GBP Series 6 £ 126.25 - 0.02 2.81

RBSG Global Investment Grade Programme GBP S3 £ 116.32 - 0.02 2.84

RBSG UK Sovereign Bond Index Programme Series 6 £ 11.30 - 0.00 3.08

Absolute Rtn Multi Asset Prog SER 3 GBP £ 9.80 - 0.05 0.00

** 30 day average yield

Royal London Asset Mgmt (Ireland) Ltd (IRL)PO Box 9428, Dublin 1, Ireland 08456 040404FSA Recognised

Royal London Asset Management Bond Funds PLC

Sterling Extra Yield Bond A £ 1.07 - 0.00 7.84

Sterling Extra Yld Bd B £ 1.05 - 0.00 7.56

Russell Investment Company Plc (IRL)Russell Investment Group 10 Regent St Ldn SW1Y 4PE 020 7024 6000FSA Recognised

Cont Eur Eq B € 22.50 - 0.04 0.00

Cont Eur Eq F F € 1214.04 - 2.28 0.00

Cont Eur Eq SH I F £ 90.27 - 0.21 0.00

Cont Eur Eq A € 25.92 - 0.05 0.00

Emerg Mkts Eq B $ 21.75 - 0.16 0.00

Global Bond B $ 21.37 - -0.01 0.00

Japan Equity B ¥ 826.50 - 6.08 0.00

Fund Bid Offer D+/- Yield

Pacific Basin B $ 23.16 - 0.15 0.00

UK Index Linked I £ 18.29 - 0.00 0.00

US Bond B F $ 17.35 - -0.02 0.00

US Equity B $ 10.98 - 0.01 0.00

US Equity EH A F € 115.82 - 0.02 0.00

World Equity II B F $ 9.72 - 0.02 0.00

RIC - OMIGSA

Acadian Emerging Markets Eq Ucits A £ 21.43 - 0.08 0.00

Acadian European Eq Ucits I € 9.19 - 0.02 2.55

Acadian Gbl Eq Ucits A € 10.06 - -0.03 0.00

Emerg Markets EQ Ucits B $ 10.29 - 0.04 0.00

Global Aggreg.Bd Fd $ 18.53 - -0.01 0.32

Global Bond B F $ 18.58 - -0.02 0.28

Global Credit Fund A F $ 13.10 - 0.00 0.45

Global Currency Fd A $ 12.09 - 0.02 0.21

US Growth Equity A F $ 16.06 - -0.06 0.05

Value Global Equity F $ 21.46 - 0.11 0.19

Russell Investment Company II PLC (IRL)Russell Investment Group, 10 Regent St, Ldn SW1Y 4PE 020 7024 6000FSA Recognised

Euro Fixed Inc I ACC F £ 20.41 - 0.07 0.00

Pan European Eq I F £ 15.49 - 0.06 0.00

UK Equity Plus B F £ 124.23 - 0.34 0.00

US Growth I Acc F £ 11.06 - -0.04 0.00

US Quant B F $ 14.11 - -0.01 0.00

World Equity B $ 16.56 - 0.02 0.00

World Equity I F £ 18.47 - 0.01 0.00

World Equity SH-B F £ 112.88 - 0.11 0.00

SVG Investment Managers LimitedOther International

SVG UK Focus Fd Cls I £ 18.13 18.13 0.02 2.46

SVG UK Focus Fd Cls A £ 17.62 17.62 0.02 2.01

SW Mitchell Capital LLP (CYM)Regulated

S W Mitchell Class A Shares Euro € 233.31 - 2.12 0.00

S W Mitchell Class B Shares USD $ 232.01 - 2.01 0.00

SAM (LUX)Tel. +41 44 653 10 10 www.sam-group.comRegulated

SAM Smart Energy Fund GBP/A £ 12.51 - 0.03 1.13

SAM Smart Materials Fund GBP/A £ 103.37 - -0.23 0.05

SAM Sust. Climate Fund GBP/A £ 62.79 - 0.11 0.16

SAM Sust. Global Active Fd EUR/B € 119.09 - -0.36 0.00

SAM Sust. Healthy Liv Fd EUR/B € 110.50 - -0.29 0.00

SAM Sust. Water Fund GBP/A £ 122.05 - -0.08 0.99

Schroder Property Managers (Jersey) LtdOther International Funds

Indirect Real Estate SIRE £ 101.35 105.57 0.02 4.23

Schroder Inv Mgmt (Guernsey) Ltd (GSY)PO Box 255, St Peter Port, Guernsey 01481 745 001FSA Recognised

Offshore Cash £ 1.7886200 1.7886200 0.0000100 0.00

Offshore Cash B F £ 1.8012500 1.8012500 0.0000200 0.00

SEB Asset Management S.A. (LUX)www.seb.se +352 26 68 2595Regulated

SEB Ethical Europe Fund € 2.30 2.30 0.00 0.00

SEB Europe Fund € 3.36 3.36 -0.01 0.00

SEB European Equity Small Cap € 143.15 144.58 0.76 0.93

SEB Asset Selection Fund EUR € 13.70 14.39 0.04 0.00

SEB Russia Fund € 9.59 9.59 -0.05 0.00

SEB Eastern Europe ex Russia € 2.79 - 0.00 0.00

SEB Eastern Europe Small Cap Fund € 2.51 2.51 -0.01 0.00

SEB Hedge IC € 99.36 - -1.00 0.00

SEB Key Europe Equity L/S € 94.67 - 0.63 0.00

SEB Key Select C € 9.72 9.82 0.01 0.00

SEB Key Select I € 9.95 9.95 0.01 0.00

SEB Nordic Fund € 6.79 6.79 -0.07 0.00

SIA (SIA Funds AG) (LUX)Regulated

LTIF Alpha € 141.62 - 0.18 0.00

LTIF Classic € 249.23 - 0.23 0.00

LTIF Em.Mkt Value € 82.32 - 0.41 0.00

LTIF Natural Resources € 92.83 - 0.99 0.00

SIA (SIA Funds AG) (CH)Other International Fds

LTIF Stability Growth SFr 188.80 - 3.50 0.76

LTIF Stability Inc Plus SFr 190.20 - 3.60 0.00

SKAGEN Funds (NOR)PO Box 160, 4001 Stavanger, NorwayTel (47) 51 21 38 58 www.skagenfunds.comFSA Recognised

SKAGEN Global € 112.64 - -0.59 0.00

SKAGEN Kon-Tiki € 70.68 - -0.16 0.00

SKAGEN Vekst € 172.62 - 0.28 0.00

SKAGEN Tellus € 15.15 - -0.03 0.00

Sloane Robinson LLP (CYM)Regulated

S.R. Global Fund Inc.

B-Asia $ 592.31 - 6.47 0.00

C-International $ 392.37 - 13.72 -

G1 Emerging Mkts $ 1063.79 - 13.73 0.00

H - Japan $ 83.38 - 2.39 0.00

SR Phoenicia Inc

Phoenicia A $ 393.90 - 11.48 -

Smith & Williamson Investment Mgmt Ltd (BMU)Regulated

Bermuda Capital Co Ltd $ 293.17 - 0.92 0.48

Mid Ocean World Inv $ 437.29 - 0.97 0.20

Pancurri Investment Ltd (Est) $ 1042.79 - 0.08 0.00

Spinnaker Capital GroupOther International Funds

Global Emg Markets Ser K1 (Est) $ 106.26 - 3.16 0.00

Global Opportunity Ser K1 $ 95.55 - 1.67 0.00

Stenham Asset Management IncOther International Funds

Stenham Universal USD (Est) $ 380.55 - 2.65 -

Stenham Universal EUR (Est) € 119.62 - 0.80 -

Stenham Universal GBP (Est) £ 130.94 - 0.92 -

Stenham Universal II USD $ 142.16 - -1.37 0.00

Stenham Universal II GBP (Est) £ 140.16 - 0.93 -

Stenham Universal II EUR (Est) € 123.97 - 0.78 -

Stenham Growth USD (Est) $ 174.56 - 1.21 -

Stenham Trading Port. $ 4720.04 - -62.93 -

Stenham Quadrant USD A (Est) $ 368.48 - 0.55 -

Stenham Quadrant USD A (Est) $ 368.48 - 0.55 -

Stenham Asia EUR (Est) € 92.26 - 1.07 -

Stenham Asia GBP (Est) £ 94.53 - 1.13 -

Stenham Asia USD (Est) $ 118.26 - 1.40 -

Stenham Gold USD $ 296.07 - -10.13 -

Stenham Multi Strategy EUR (Est) € 99.80 - 0.66 -

Stenham Multi Strategy GBP (Est) £ 103.41 - 0.73 -

Stenham Multi Strategy USD (Est) $ 104.27 - 0.72 -

Stenham Global Resources EUR € 102.66 - -0.25 -

Stenham Global Resources GBP £ 107.71 - -0.21 -

Stenham Global Resources USD $ 109.20 - -0.24 -

Stenham Managed Fund EUR (Est) € 95.45 - 0.30 -

Stenham Managed Fund GBP (Est) £ 99.43 - 0.36 -

Stenham Managed Fund USD (Est) $ 99.81 - 0.35 -

Stratton Street Capital (CI) Limited (GSY)Regulated

Wonda Bond & Currency Fund (USD) $ 117.13 - -0.35 0.00

Fine Wine Geared Fund £ 0.44 - -0.01 0.00

Japanese Synthetic Warrant ¥ 102.05 - 11.02 0.00

Japan Synthetic Warrant Fund USD Class $ 1.60 - 0.14 0.00

Asia Synthetic Warrant Fund $ 5.18 - 0.38 0.00

Renminbi Bond Fund AUD Cls A A$ 113.50 - 0.04 -

Renminbi Bond Fund AUD Cls B A$ 113.40 - 0.03 -

Fund Bid Offer D+/- Yield

Renminbi Bond Fund CHF Cls A SFr 121.07 - 0.05 -

Renminbi Bond Fund CHF Cls B SFr 120.83 - 0.04 -

Renminbi Bond Fund CNH Cls A CNH 121.62 - 0.03 -

Renminbi Bond Fund CNH Cls B CNH 121.36 - 0.02 -

Renminbi Bond Fund Euro Cls B € 121.12 - 0.02 -

Renminbi Bond Fund GBP Cls B £ 121.37 - 0.03 -

Renminbi Bond Fund SGD Cls B S$ 121.18 - 0.03 -

Renminbi Bond Fund USD Cls B $ 121.39 - 0.03 -

Renminbi Bond Fund YEN Cls B ¥ 12144.67 - 2.51 -

Renminbi Bond Fund USD Class $ 167.99 - 0.04 3.49

Renminbi Bond Fund GBP Class £ 162.34 - 0.03 3.52

Renminbi Bond Fund SGD Class S$ 161.08 - 0.03 3.61

Renminbi Bond Fund YEN Class ¥ 17902.00 - 5.00 0.00

Renminbi Bond Fund EUR Class € 111.86 - 0.01 3.61

Poland Geared Growth £ 0.67 - -0.05 0.00

E. I. Sturdza Strategic Management Limited(GSY)Regulated

Nippon Growth Fund Limited ¥ 54421.00 - 797.00 0.00

Strat Evarich Japan Fd Ltd JPY ¥ 57272.00 - -213.00 0.00

Strat Evarich Japan Fd Ltd USD $ 571.46 - -2.03 0.00

Strat Global Innovation fd Ltd EUR € 1143.34 - -25.71 0.00

Strat Global Innovation fd Ltd USD $ 1175.91 - -25.85 0.00

E.I. Sturdza Funds PLC (IRL)Regulated

Strategic China Panda Fund USD $ 1881.00 - 11.91 0.00

Strategic China Panda Fund Hedged EURO € 1847.51 - 12.01 0.00

Strategic China Panda Fund Hedged Sterling £ 1788.80 - 12.07 0.00

Strategic US Momentum and Value Fund $ 552.61 - -1.15 -

Nippon Growth (UCITS) Fund JPY Class A shares ¥ 53964.00 - 228.00 0.00

Nippon Growth (UCITS) Fund JPY Class C Dis shares ¥ 44054.00 - 187.00 0.00

Nippon Growth (UCITS) Fund JPY Class B Acc shares ¥ 45497.00 - 192.00 0.00

Strategic Euro Bond Fund Distributing Class Shares € 1052.92 - -0.87 2.46

Strategic Euro Bond Fund Accumulating Class Shares € 1130.22 - -0.93 0.00

Strategic Emerging Europe Fund Hedged Euro Class € 974.13 - 9.73 0.00

Strategic Emerging Europe Fund USD Class $ 987.16 - 9.84 0.00

Strategic Europe Value Euro Class € 118.79 - -0.41 0.00

The Hartford International Funds (IRL)Regulated

Gbl Govt Bond (Ex Japan) Index (GBP) £ 1532.59 - 0.99 0.00

UK Corporate Bond £ 1373.76 - 2.09 0.00

Gilt £ 1456.30 - 4.49 0.00

Global Eq (Ex Japan) Index Fund ¥ 0.97 - 0.00 0.00

Global Eq (ex Japan) Class HJ4 ¥ 1.01 - 0.00 0.00

Global Eq (ex Japan) Class JP5 ¥ 0.80 - 0.01 0.00

Global Eq Ex Japan Index Fund (Hedge) ¥ 0.73 - 0.01 0.00

Gbl Govt Bond (Ex Japan) Index ¥ 0.92 - 0.01 0.00

Gbl Govt Bond (ex Japan) Class JP4 ¥ 0.90 - 0.01 0.00

Japan Equity Index Fund ¥ 0.53 - 0.01 0.00

Japan Equity Class JP3 ¥ 0.64 - 0.01 0.00

The National Investor (TNI)www.tni.ae

Other International Funds

UAE Blue Chip Fund AED 5.16 - 0.02 0.00

TNI Funds Ltd (BMU)

MENA Special Sits Fund $ 1035.69 - -10.36 0.00

TNI Funds Plc (Ireland)

MENA UCITS Fund $ 1014.05 - 8.87 0.00

The Nile Growth Company (LUX)Regulated

Nile Growth Fd A dis $ 26.63 - 0.00 0.00

Traditional Funds (IRL)State Street International (Ireland) Limited. No. 78 Sir John Rogerson?s Quay, Dublin 2, IrelandPhone:+353 1 242 5529 Fax:+353 1 438 9528 Email:TRCInvestorServices@statestreet.comFSA Recognised

BSI Bond Opportunity Fund Eur Acc € 10.15 - 0.00 0.00

BSI Bond Opportuinty Fund USD Acc $ 10.14 - 0.00 0.00

BSI Bond Opportunity Fund CHF AccSFr 9.87 - 0.00 0.00

Credit Select A EUR Dis € 10.13 - 0.00 1.18

Credit Select A EUR Acc € 10.84 - 0.00 0.00

European Absolute Return Fund Class A Old Euro Acc € 20.69 - 0.04 0.00

European Absolute Return Cls A New Euro Acc € 11.27 - 0.03 0.00

High Income USD Dis $ 9.26 - 0.00 8.48

High Income Cls A New USD Dis $ 7.04 - 0.01 8.48

High Income Cls A New USD Acc $ 10.70 - 0.01 0.00

Global Bd (£) GBP Dis £ 13.25 - 0.01 0.00

Global Bd (£) GBP Acc £ 15.39 - 0.02 0.00

Global Bd (€) Acc € 14.10 - -0.01 0.00

Global Bd (€) Dis € 12.41 - 0.00 0.00

Global Bd ($) Acc $ 11.75 - 0.01 0.00

Global Bd ($) Dis $ 10.31 - 0.02 0.00

Global Credit A EUR Dis € 9.72 - 0.00 1.23

Global Credit A EUR Acc € 10.62 - 0.00 0.00

Real Estate Securities Cls A GBP Acc £ 12.28 - 0.05 0.00

Real Estate Securities Cls A GBP Dist £ 11.72 - 0.05 2.57

Water & Agriculture Abs Rtn USD Acc $ 12.12 - 0.01 0.00

Water & Agriculture Abs Rtn USD Dis $ 10.71 - 0.01 0.00

Emerging Asia B USD Acc $ 8.81 - 0.01 0.00

Emerging Asia B USD Dis $ 8.80 - 0.02 0.00

Global Emerging Markets USD Acc $ 14.52 - 0.04 0.00

Global Emerging Markets USD Dist $ 46.28 - 0.14 0.22

Global High Yield A Euro Acc € 10.64 - 0.02 0.00

Global High Yield A Euro Dis € 10.11 - 0.02 3.16

Global Emerging Mkt Abs Rtn A USD Acc $ 8.90 - 0.00 0.00

Global Emerging Mkt Abs Rtn B USD Acc $ 9.00 - 0.00 0.00

Thames River CapitalState Street Fund Services (Ireland) LimitedNo. 78 Sir John Rogerson?s Quay, Dublin 2, IrelandPhone: +353 (0)1 242 5529Fax : +353 (0)1 438 9528TRCInvestorServices@statestreet.com

Other International Funds

Hillside Apex Cls A $ 1219.13 - -56.05 0.00

Warrior Cls A (Final) $ 2475.20 - -17.39 -

Warrior Cls F (Final) $ 1030.42 - -7.24 -

Warrior II Class A (Final) $ 1228.74 - -9.04 0.00

Warrior II Class F (Final) $ 965.52 - -7.09 -

Sentinel Cls A (Final) $ 1714.36 - -14.54 0.00

Longstone Cls A € 1296.74 - -3.13 0.00

Property Growth & Inc Cls A GBP Inc £ 11.09 - 0.01 4.82

Property Growth & Inc Cls A GBP Acc £ 14.89 - 0.01 0.00

Africa Focus Class A USD (Final) $ 1119.23 - -23.14 0.00

Isis Cls A $ 7741.27 - 123.25 0.00

Tilney Asset Management Intl Ltd (GSY)Other International Funds

The Glanmore Property Fund

NAV (Susp) £ 2.24 - -0.09 12.08

B Share NAV (Susp) £ 2.24 - -0.09 12.08

The Glanmore Property Dollar Fund

NAV (Susp) $ 1.06 - -0.03 0.00

B Share NAV (Susp) $ 0.96 - -0.04 0.00

The Glanmore Property Euro Fund Limited

NAV (Susp) € 0.95 - -0.02 0.00

B Share NAV (Susp) € 0.60 - -0.04 -

Tilney Asset Management Intl LtdOther International Funds

The Glanmore Property Accumulation Fund Limited

NAV £ 0.42 - -0.01 0.00

B Share NAV £ 1.03 - -0.03 0.00

Toscafund (CYM)Regulated

Tosca $ 212.94 - 4.04 0.00

Tosca Mid Cap GBP £ 151.62 - 15.98 0.00

Tosca Opportunity B USD $ 168.14 - -14.42 0.00

TreeTop Asset Management S.A. (LUX)Regulated

TreeTop Convertible Sicav

International A € 223.06 - 1.47 0.00

International B $ 288.28 - 1.99 0.00

International C £ 98.96 - 0.69 3.09

Pacific A € 259.04 - 0.41 0.00

Pacific B $ 327.94 - 0.56 0.00

TreeTop Global Sicav

Global Opp.A € 108.61 - 0.21 0.00

Global Opp.B $ 113.93 - 0.31 0.00

Global Opp.C £ 138.91 - 0.29 0.00

Sequoia Equity A € 96.86 - 0.69 0.00

Sequoia Equity B $ 104.43 - 0.94 0.00

Sequoia Equity C £ 117.84 - 0.97 0.00

Sequoia Pacific Equity A € 60.49 - 0.27 0.00

Sequoia Pacific Equity B $ 67.23 - 0.33 0.00

Sequoia Pacific Equity C £ 82.08 - 0.35 0.00

Fund Bid Offer D+/- Yield

UBS AG (LUX)291, Route d'Arion P 91, L-2010 Luxembourgwww.ubs.com/fundsFSA Recognised

UBS (CH) Equity Fund - Gold (USD) P $ 495.25 - 9.23 0.00

UBS (CH) Equity Fund - Energy (USD) P $ 296.95 - 2.00 0.15

UBS Global Emerging Market Value Focus P USD $ 113.05 - -0.45 0.00

UBS (Lux) Bond Fund - Convert Europe P-acc € 134.15 - 0.24 0.00

UBS (Lux) Bond Fund - Euro High Yield P-acc € 156.45 - 1.87 0.00

UBS (Lux) Bond Fund - Full Cycle Asian Bond (USD) P-acc $ 121.63 - -0.76 0.00

UBS (Lux) Bond SICAV - Asian Local Currency Bond (USD) P-acc $ 104.40 - 0.10 0.00

UBS (Lux) Bond SICAV - Convert Global (EUR) P-acc € 10.69 - 0.02 0.00

UBS (Lux) Bond SICAV - Short Duration High Yield (USD) P-acc $ 108.12 - 0.01 0.00

UBS (Lux) Bond SICAV - USD High Yield P-acc $ 230.07 - 0.25 0.00

UBS (Lux) Emerging Economies Fund - Global Bonds (USD) P-acc $ 1885.39 - -25.59 0.00

UBS (Lux) Emerging Economies Fund - Global Short Term (USD) P-acc $ 2980.22 - 3.48 0.00

UBS (Lux) Equity Fund - Asian Consumption (USD) P-acc $ 108.29 - -0.24 0.00

UBS (Lux) Equity Fund - Greater China (USD) P-acc $ 193.92 - -0.63 0.00

UBS (Lux) Equity Fund - Health Care (USD) P-acc $ 138.85 - -0.48 0.00

UBS (Lux) Equity SICAV - Russia (USD) P-acc $ 109.44 - 1.09 0.00

UBS (Lux) Equity SICAV - USA Growth (USD) P-acc $ 17.33 - 0.03 0.00

UBS (Lux) Key Selection SICAV - Global Allocation Focus Europe (EUR) P-acc € 9.80 - -0.01 0.00

UBS (Lux) SICAV 1 - All Rounder (USD) P-acc $ 141.29 - -0.43 0.00

Pls contact your adviser for funds in other currencies or for add.

UOB Global Strategies Funds Plc (IRL)Regulated

UOB Asian Equity $ 214.13 - 1.95 0.00

UOB Greater China $ 229.90 - 2.42 0.00

UOB Paradigm Fund Class A (Eur) € 146.77 - 0.55 0.00

UOB Paradigm Fund Class B (USD) $ 183.79 - 0.69 0.00

UOB Paradigm Fund Class C $ 118.37 - 0.44 0.00

UOB Paradigm Fund Class D $ 115.82 - 0.44 0.00

UOB US Equity Fund $ 155.10 - 0.21 0.00

UOB Global Opportunities Fund $ 108.20 - 0.52 0.00

UOB Strategic Allocation Fund USD $ 101.57 - -0.18 0.00

Unicapital Investments (LUX)Regulated

Investments II € 71.93 - -19.64 0.00

Investments III € 146.01 - -3.06 0.00

Investments IV - European Private Eq. € 430.45 451.97 -10.20 -

Investments IV - Global Private Eq. € 597.10 626.96 -78.89 -

Value Partners Hong Kong Limited (IRL)www.valuepartners.com.hk / vpl@vp.com.hkRegulated

VP Absolute Greater China Classic Fund $ 10.82 - 0.00 -

Veritas Asset Management (UK) Limited (IRL)HSSI Ltd, 1 Grand Canal Sq, Grand Canal Harbour, Dublin 2, IrelandVeritas Funds Plcwww.veritas-asset.com+353 1 635 6799FSA Recognised

Institutional

Veritas Asian Fund A USD H $ 256.74 - -1.06 1.14

Veritas Asian Fund A GBP H £ 297.92 - -0.99 1.15

Veritas Asian Fund A EUR H € 228.75 - -1.58 1.18

Veritas China Fund A USD $ 107.61 - -0.28 0.63

Veritas China Fund A GBP £ 109.30 - -0.28 0.00

Veritas China Fund A EUR € 107.07 - -0.28 0.45

Veritas Global Equity Income Fund D USD $ 127.53 - 0.03 -

Veritas Global Equity Income Fund D EUR € 189.10 - -0.47 -

Veritas Global Equity Income Fund D GBP £ 153.85 - 0.16 -

Veritas Global Focus Fund D USD $ 20.06 - 0.00 -

Veritas Global Focus Fund D EUR € 15.44 - -0.05 -

Veritas Global Focus Fund D GBP £ 21.05 - 0.01 -

Veritas Global Focus Fund A GBP £ 20.35 - 0.02 1.48

Veritas Global Focus Fund A EUR € 9.00 - -0.02 1.56

Veritas Global Focus Fund A USD $ 19.31 - 0.00 1.50

Veritas Global Focus Fund C GBP £ 21.11 - 0.01 0.00

Veritas Global Focus Fund C EUR € 15.54 - -0.04 0.00

Veritas Global Focus Fund C USD $ 20.11 - -0.01 0.00

Veritas Global Equity Income Fund A GBP £ 148.56 - 0.15 4.51

Veritas Global Equity Income Fund A EUR € 185.30 - -0.47 4.51

Veritas Global Equity Income Fund A USD $ 123.58 - 0.03 4.53

Veritas Global Equity Income Fund C GBP £ 155.67 - 0.17 -

Veritas Global Equity Income Fund C EUR € 194.25 - -0.49 -

Veritas Global Equity Income Fund C USD $ 128.96 - 0.03 -

Veritas Global Real Return Fund A USD $ 17.48 - 0.02 0.97

Veritas Global Real Return Fund A GBP £ 9.53 - 0.01 0.83

Veritas Global Real Return Fund A EUR € 9.45 - 0.28 0.00

Retail

Veritas Asian Fund B USD $ 181.27 - -0.75 0.70

Veritas Asian Fund B GBP £ 219.05 - -0.73 0.35

Veritas Asian Fund B EUR € 167.58 - -1.16 0.67

Veritas China Fund B USD $ 113.71 - -0.30 0.00

Veritas China Fund B GBP £ 106.07 - -0.28 0.14

Veritas China Fund B EUR € 107.67 - -0.29 0.00

Veritas Global Focus Fund B USD $ 13.98 - -0.01 0.91

Veritas Global Focus Fund B GBP £ 15.57 - 0.01 0.92

Veritas Global Focus Fund B EUR € 10.73 - -0.03 1.88

Veritas Global Equity Income Fund B GBP £ 138.82 - 0.15 4.53

Veritas Global Equity Income Fund B EUR € 172.67 - -0.44 4.53

Veritas Global Equity Income Fund B USD $ 124.51 - 0.03 4.55

Veritas Global Real Return Fund B USD $ 16.95 - 0.02 0.59

Veritas Global Real Return Fund B GBP £ 9.44 - 0.01 0.47

Veritas Global Real Return Fund B EUR € 11.11 - 0.02 0.42

Veritas Asset Management (UK) Limitedwww.veritas-asset.com

Other International Funds

Real Return Asian Fund USD (Est) € 237.29 - 2.25 0.00

Real Return Asian Fund GBP (Est) £ 254.40 - 5.38 0.00

Real Return Asian Fund EUR (Est) $ 247.08 - 2.33 0.00

Victory Capital LtdOther International Funds

Victory Capital Ltd A GBP (Est) £ 132.50 - -2.00 -

Waverton Investment Funds Plc (1600)F (IRL)waverton.investments@citi.comFSA Recognised

Asia Pacific B USD $ 17.97 - 0.00 0.94

European Fund B Eur H € 8.97 - 0.02 1.03

Global Bond Fund Cls A $ 9.85 - 0.00 4.75

Global Equity Fund B GBP H £ 5.38 - 0.01 0.00

JOHIM Equity Fund GBP £ 11.12 - 0.03 0.00

JOHIM Sterling Bond Fund A GBP £ 10.24 - 0.01 4.99

Waverton Abs. Fund GBP £ 9.95 - 0.00 0.32

UK Fund B GBP H £ 10.41 - 0.00 2.62

WA Fixed Income Fund Plc (IRL)Regulated

European Multi-Sector € 113.88 - 0.12 0.00

Williams de Broë Assetmaster Fund Plc (IRL)Comore Plaza, Colmore Circus, Birmingham, B4 6AT 0044 121 2320726FSA Recognised

Assetmaster Growth Fund £ 1.64 - 0.00 0.00

Assetmaster Cautious Fund £ 1.39 - 0.00 0.00

Assetmaster Balanced Fund £ 1.37 - 0.00 0.00

Assetmaster Intl Growth Fund £ 1.59 - 0.00 0.00

Multi Strategy Fund H £ 1.79 - 0.00 0.00

Chameleon Capital H £ 1.12 - 0.03 0.00

Winton Capital ManagementOther International Funds

Winton Futures USD Cls B $ 809.62 - 8.02 0.00

Winton Futures EUR Cls C € 228.05 - 2.18 0.00

Winton Futures GBP Cls D £ 247.25 - 2.50 0.00

Winton Futures GBP Cls F £ 95.34 - 0.96 -

Winton Evolution USD Cls F (Est) $ 1292.13 - -32.83 0.00

Winton Evolution EUR Cls H (Est) € 1019.38 - -26.06 0.00

Winton Evolution GBP Cls G (Est) £ 1025.90 - -26.05 0.00

Winton Futures JPY Cls E ¥ 15834.65 - 155.76 0.00

World Trust Fund (LUX)Regulated

Shares NAV £ 2.14 - 0.00 0.00

Xanthos Asset Management LtdOther International Funds

Xanthos Capital USD $ 896.05 - -1.82 0.00

Xanthos Equities USD $ 938.37 - -7.73 0.00

Xanthos Investment Partners USD $ 2527.46 - 34.83 0.00

Fund Bid Offer D+/- Yield

Yuki International Limited (IRL)Tel +44-207-269-0203 www.yukifunds.comRegulated

Yuki Mizuho Umbrella Fund

Yuki Mizuho General Japan III ¥ 3597.00 - 38.00 0.00

Yuki Mizuho Japan Dynamic Growth ¥ 3541.00 - 36.00 0.00

Yuki Mizuho Japan General ¥ 7170.00 - 81.00 0.00

Yuki Mizuho Japan Excellent 100 ¥ 5811.00 - 63.00 0.00

Yuki Mizuho Japan Growth ¥ 5202.00 - 51.00 0.00

Yuki Mizuho Japan Income ¥ 6521.00 - 35.00 0.00

Yuki Mizuho Japan Large Cap ¥ 4107.00 - 42.00 0.00

Yuki Mizuho Japan Low Price ¥ 10026.00 - 52.00 0.00

Yuki Mizuho Japan Pure Gwth ¥ 6033.00 - 56.00 0.00

Yuki Mizuho Japan Small Cap ¥ 6679.00 - 7.00 0.00

Yuki Mizuho Japan Value Select ¥ 4961.00 - 19.00 0.00

YMR Umbrella Fund

YMR N Growth ¥ 8127.00 - 98.00 0.00

Yuki Chugoku Umbrella Fund

Yuki Chugoku Japan General ¥ 6113.00 - 32.00 0.00

Yuki Chugoku Japan Low Price ¥ 5866.00 - 54.00 0.00

Yuki 77 Umbrella Fund

Yuki 77 General ¥ 4961.00 - 54.00 0.00

Yuki Hokuyo Umbrella Fund

Yuki Hokuyo Japan General ¥ 3883.00 - 41.00 0.00

Yuki Hokuyo Japan Income ¥ 4537.00 - 18.00 0.00

Yuki Hokuyo Japan Small Cap Fund ¥ 5065.00 - 9.00 0.00

Yuki Asia Umbrella Fund

Yuki Japan Rebounding Growth Fund ¥ 8682.00 - 109.00 0.00

Zadig Gestion (Memnon Fund) (LUX)FSA Recognised

Memnon European Fund I GBP £ 102.52 - 0.50 0.00

Zebedee Capital Partners LLP (CYM)Regulated

Zebedee Focus Fund Limited Class A EURO Shares € 169.78 - -0.96 0.00

Zebedee Focus Fund Limited Class B USD Shares $ 197.30 - -1.19 0.00

Zebedee Focus Fund Limited Class A USD $ 170.38 - -0.82 0.00

Data Provided by Morningstar

www.morningstar.co.ukData as shown is for information purposes only. Nooffer is made by Morningstar or this publication.

Full fund performance data atwww.ft.com/funds

Guide to DataThe fund prices quoted on these pages aresupplied by the operator of the relevant fund.Details of funds published on these pages,including prices, are for the purpose ofinformation only and should only be used as aguide. The Financial Times Limited makes norepresentation as to their accuracy orcompleteness and they should not be reliedupon when making an investment decision.

The sale of interests in the funds listed onthese pages may, in certain jurisdictions, berestricted by law and the funds will notnecessarily be available to persons in alljurisdictions in which the publication circulates.Persons in any doubt should take appropriateprofessional advice. Data collated byMorningstar. For other queries contactreader.enquiries@ft.com +44 (0)207 8734211.

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Guide to pricing of Authorised InvestmentFunds (compiled with the assistance of theIMA. The Investment Management Association,65 Kingsway, London WC2B 6TD. Tel: +44(0)20 7831 0898.)

OEIC: Open­Ended Investment Company.Similar to a unit trust but using a companyrather than a trust structure.

Different share classes are issued to reflecta different currency, charging structure or typeof holder.

Selling price:Also called bid price. The priceat which units in a unit trust are sold byinvestors.

Buying price: Also called offer price. Theprice at which units in a unit trust are boughtby investors. Includes manager’s initial charge.

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Time: Some funds give information aboutthe timing of price quotes. The time shownalongside the fund manager’s/operator’s nameis the valuation point for their unit trusts/OEICs,unless another time is indicated by the symbolalongside the individual unit trust/OEIC name.

The symbols are as follows: ✠ 0001 to1100 hours; ♦ 1101 to 1400 hours; ▲1401 to1700 hours; # 1701 to midnight. Daily dealingprices are set on the basis of the valuationpoint, a short period of time may elapse beforeprices become available.Historic pricing: Theletter H denotes that the managers/operatorswill normally deal on the price set at the mostrecent valuation. The prices shown are thelatest available before publication and may notbe the current dealing levels because of anintervening portfolio revaluation or a switch to aforward pricing basis. The managers/operatorsmust deal at a forward price on request, andmay move to forward pricing at any time.Forward pricing: The letter F denotes that thatmanagers/operators deal at the price to be setat the next valuation.

Investors can be given no definite price inadvance of the purchase or sale being carriedout. The prices appearing in the newspaper arethe most recent provided by themanagers/operators. Scheme particulars,prospectus, key features and reports: The mostrecent particulars and documents may beobtained free of charge from fundmanagers/operators. * Indicates funds which donot price on Fridays.

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MANAGED FUNDS SERVICE

DECEMBER 14 2012 Section:Stats Time: 13/12/2012 - 19:02 User: sheehanr Page Name: UT6 EUR, Part,Page,Edition: EUR, 21, 1

22 ★ FINANCIAL TIMES FRIDAY DECEMBER 14 2012

American and British Stocks 52 week VolStock Price Chng High Low Yld P/e ’000s

UK (Dec 13/Pence)3i 216xd +4.1 254.82 166.10 3.8 - 3903AberAsM 342xd -.9 353 194.10 3.4 18.1 6615ABG 420 +5 535 301.40 2.8 12.7 888Admiral 1.15k +7 1.19k 757.04 7.1 13.5 503Aegis 235.20 -.6 238.40 133.70 1.4 25.4 2080Aggreko 2.14k -31 2.42k 1.79k 1 20.3 581Alliance 378.30xd -1.2 380.22 328.30 2.3 39.8 599AMEC 1.02kxd -23 1.19k 858.50 3.1 14.2 1864Amlin 384 +2 408.30 307.60 6.1 11.1 1254AngloAmer @ 1.86k -25.5 2.96k 1.66k 2.9 9 5324Antofagsta @ 1.34k -9 1.4k 972 2.1 14.4 1835ARM 751 -8 780.90 463.60 0.5 67.1 5712AscBrFd 1.52kxd -5 1.52k 1.08k 1.9 19.3 1173Ashmore 354.90 +1.6 406 300.30 4.2 13.2 1727AstraZen @ 2.96k -84 3.12k 2.58k 6.6 8.2 5474Aviva 372.80 +5.9 385.10 251.10 7 - 18671Babcock 980xd -3.5 1.01k 685 2.4 18.7 1327BAE SYS 339.10 +.2 367.50 266.30 5.6 8.2 3764BalfourB 267.50 +4.5 321.45 234.60 5.3 10.6 3169Barclays @ 254.10 +1.5 288 148.20 2.4 8 99191Berkeley 1.71k - 1.77k 1.17k 0.9 14 315BG @ 1.05k -18 1.55k 991 1.5 16 12503BHP Bltn 2.07k +4 2.24k 1.62k 3.7 12.5 6765BlckRckWld 588.50 +1.5 750.44 524 1.2 27.7 296Booker Grp 98.50 -1 105.50 69.40 2.4 20.7 3817BP @ 428.75xd -1.3 554 359.90 5 6.7 28925BrAmTob @ 3.24k -6.5 3.51k 2.88k 4 18.7 4550BritLand 559 +3 561 443.40 36468.2 19.5 2794BSkyB @ 761 -9 787 628.76 3.3 14.5 3712BT @ 237.40 +2.5 242.30 185.50 3.7 8.7 21153Bumi 268.20 -2.6 941 119.54 - - 408Bunzl 1.06kxd -1 1.17k 832.50 2.6 17.3 1047Burberry 1.26k -34 1.61k 998 2.1 23.1 1348bwin.party 111 +.6 177 91.05 3 9.6 3799CairnEng 260.90 -2.3 364.90 245.20 - - 2285Cap&Count 248 +1.8 248.90 169.50 0.6 10.7 3600Capita 758.50 +4.5 788 600 2.9 18.1 1709CapShopCn 353.20 +1.6 354.80 289.60 3.8 - 742Carillion 304.60 +4.6 348 232.17 5.6 9 2986Carnival 2.46kxa -5 2.54k 1.58k 2.8 19.3 593CatlinGrp 496.50 +.4 498.70 376.20 5.2 4.9 764Centrica @ 336.60 -.9 341.80 248.40 4.7 15.4 6757Cobham 214.10 -.5 242.70 167.60 4 13.9 1565Compass @ 737 -8 748.34 577.50 2.9 22.4 5310Cookson 634.50 +.5 755 452.90 3.5 10.5 1151CRH 1.17k +2 1.88k 1.05k 4.3 17.6 1357Croda 2.34k -32 2.5k 1.68k 2.4 18.6 506Daily Mail 539.50xd +1 554.50 361.40 3.3 18.1 729Diageo @ 1.84k -9.5 1.89k 1.23k 2.4 24.7 6044Drax Group 559 -5.5 584 390 4.7 4.5 874DrwntLdn 2.12k +18 2.13k 1.48k 1.3 - 105easyJet 727 -3.5 745.01 366.98 3 13.8 1069ENRC 270.30 +.2 759 259.60 4.5 4.4 6585EssarEngy 119.80 +.7 227.90 98.13 - - 505EVRAZ 259.10 -4.6 465.40 206.80 2.9 31.5 4347Experian 999 -23 1.1k 805.50 2 24.1 5414Ferrexpo 227.90 -5.1 370 138.70 1.8 5.1 1774FirstGrp 189.70 +1.7 344 174.60 12.5 5.9 4170For & Col 319 - 320.20 275.17 1.9 45.1 293Fresnillo @ 1.94k -27 2.03k 1.26k 3.5 28.7 793G4S 252.60 -2.7 293.40 237.30 3.4 26.8 4660GKN 226.50 +1 242.10 169.20 2.8 10.5 6690GlaxoSmh @ 1.37kxd -11 1.56k 1.31k 5.3 14.4 11105Glencore @ 350.15 +1.55 484 289.35 2.7 11.5 7868Halma 451.60 -2 456.30 324.08 2.2 18.4 791Hammersn 485.90 +3.7 486.80 339.20 2.9 28.1 1846Hargr Lans 702.50 -2.5 785.48 404.72 3.2 29 741HikmaPhm 745.50 -11.5 785 598.50 1.2 25.4 378Hiscox 467.30 +4.6 497 359 3.8 9.3 293Hochschild 491 +1 543.76 364.74 0.8 26.9 231HSBC @ 643.40 -.4 647.20 474 4.4 16.1 37026Hunting 807.50 -9.5 977 680.50 1.9 20.5 348IAG 171.70 -1.1 219.34 136 - - 3002ICAP 303.40 +3.4 431.67 272.80 7.4 11 4010IG Group 434.80 -4.8 505 413.80 5.2 11.5 1263ImgnTech 408 -17 734 398 - 59 1376IMI 1.07k -8 1.1k 709.50 2.9 16 1001ImpTob @ 2.45k -14 2.63k 2.21k 4.3 12.8 3040Inchcape 437 -9.4 452.10 276.20 2.6 12.6 1615Informa 437.10 +4.1 453.40 330.70 4.1 41.2 2233Inmarsat 605.50 +2.5 613.14 361.68 4.8 11.9 703InterC Htls 1.64kxa -3 1.76k 1.06k 9.1 21.1 796Intertek 3.08k +12 3.15k 1.89k 1.2 29.2 621Invensys 324.60xd +2.2 328.40 166.80 1.4 21.2 6169Investec 409.50xd +6.9 419.10 308.90 4.2 14.7 2433ITV 102.60 +.3 104.60 60.60 1.9 14.6 14861JardineL 760 +2.5 798.50 629.50 3.2 18.1 147JohnsoM 2.41kxd -20 2.58k 1.74k 6.5 16.1 367Kazakhmys 744 -13.5 1.22k 569 2.1 7.4 2694Kenmr 30.05 -1.12 62.55 29 - 14.8 6458Kingfshr 275 - 317 235.68 3.4 10.8 7232Ladbrokes 194.50 +1.5 198.40 120 4.2 9.7 3872LandSecs 812.50xd +2.5 828 608 2.9 23.4 1480Leg&Gen 146.60 -.8 148.06 97.75 4.6 11.1 18101LlydsBkg @ 46.68 -.08 47.29 22.86 - 16 114180Lonmin 287.30 +2.3 607.43 226.96 - 14.1 4448LSE 1.01kxd -2 1.11k 751 2.8 5.2 675Man 81.10 +3.5 152.91 61.10 14 18.2 32332Marks&Sp 392.30xd -1.5 399.69 301.50 4.3 11.8 3717Meggitt 387.50 -1.9 416.60 335.10 2.8 15.3 1071MelroseInd 225.90xr +1.1 261.50 180.17 3.3 23.4 3023Mlnm&Cth 501.50 -8.5 520 378.09 3.3 8.6 277Mondi 661.50 +4.5 683.50 426.10 3.6 13.5 1456Morrison 266.10 -.7 339.70 255.20 4.1 9.5 9648Natl Grid @ 717.50xd +.5 724.97 590 5.6 11.5 12171NewWldRes 263.60 -13.4 571 219.45 4 - 38Next 3.73kxd -26 3.76k 2.55k 2.5 13.5 663Old Mutl 174.90 -.7 181.69 135.38 3.3 18.4 9086Pearson 1.18k -6 1.3k 1.1k 3.6 18.6 1910

Pennon 620.50 +.5 797 589 4.4 13.1 2120Persimn 791.50 -2.5 824 442.58 1.3 16.7 634Petrofac 1.68k -10 1.78k 1.32k 2.1 16.5 1134Petropvlsk 332 -8.4 826.66 286.60 3.6 5.3 2398PolymtIntl 1.15kxa +6 1.16k 726.70 3 24.4 477PremOil 327.10 -4.8 452.70 320.90 - 6.7 1202Providnt 1.37k +14 1.46k 908.50 5.2 14.2 349Prudential @ 898.50 -6 916.50 600.50 2.9 14.8 9612PZ Cusns 358.70 -1.3 369.70 282.49 1.9 27.5 136RBS @ 300.20 -1.2 303.20 185.08 - - 11405ReckittB @ 3.9k -52 4k 3.11k 3.2 16.6 1880Reed Els @ 634.50 -7.5 662.50 466.10 3.5 23.1 8124Rentokil 94.05 +.35 95.30 57.55 2.1 18.2 3104Resolution 247.90 +.9 287.10 189.80 8.3 16.3 2322REXAM 445.60 -1.2 463.90 335.70 3.3 14.5 1542Rightmove 1.48k -3 1.71k 1.17k 1.3 28.3 296RioTinto @ 3.34k +27.5 4.03k 2.65k 3.1 7.5 8467RIT Cap 1.12k -7 1.32k 1.08k - - 150RndgldRs 6.22k -125 7.89k 4.48k 0.4 23.4 561RollsRyc @ 867.50 -8 922.14 689.20 1.8 13.4 4332Rotork 2.52k -8 2.54k 1.74k 1.6 25.4 209RSA Ins 124.50 +.5 124.91 97 7.4 14.4 12347RylDShlA @ 2.13kxd - 2.81k 1.95k 4.6 15.9 2065RylDShlB 2.2kxd -4.5 2.93k 2.02k 4.8 16.4 2451SABMiller @ 2.8kxd +9 2.89k 2.14k 2.3 36.6 3895Sage 290.30 -1.5 326.30 245.30 3.5 15.6 5437Sainsbry 346.80xd -.9 362.20 278.60 4.7 12.3 4941SchrdrsNV 1.32k +6 1.34k 950 2.9 12.5 32Schroders 1.65k -4 1.66k 1.16k 2.4 15.6 341ScottMort 742 -3 745 560.06 1.8 50.3 239SEGRO 239.40 -.7 260.20 193.90 5.6 9.3 2791Serco 544.50 -1.5 606 454.70 1.6 16.5 1192SevernTr 1.57kxd - 1.84k 1.4k 4.6 14.6 1094Shaftbry 553.50 -1 568 455.50 1.7 15.2 772Shire 1.96k +21 2.32k 1.68k 0.5 19.3 4234SmithNph 670.50 -8.5 726.50 567.50 2.1 13.4 1557Smiths 1.15k -3 1.15k 875 3.3 18.8 1216Spectris 2.01k -3 2.06k 1.16k 1.9 18 457Spirax-S 2.23k -9 2.36k 1.73k 2.2 19.8 109SportsDirect 386.20 -23.1 417.46 187.93 - 17.1 898SSE @ 1.43k -13 1.47k 1.2k 5.7 19.8 1342St Jms Pl 407.40 +.7 412.30 301 2.2 19.1 83Stagech 304 +4 313.70 227.90 2.6 9 1045StandardLf 334.10 -.5 335.25 193.20 4.2 22.3 6909StandCh @ 1.5k +9 1.66k 1.09k 3.6 11.6 5841TalkTalk 227xd +2.1 231.60 118.90 4.3 21.9 1307Tate&Lyl 759xd -2 780 621.95 3.3 17.8 1520Taylor Wmpy 62.60 +.2 64 34.41 0.9 11.1 11696TelecityG 855.50 -11.5 963.50 614.50 0.3 33.1 854TemptnEm 578 +1.5 635.50 502.50 1 67 283Tesco @ 339.40xd -1.1 412 294.50 4.3 11.4 16438TravisPkn 1.07k +6 1.15k 749 2 10.5 1329TUI Travel 282.50 -3.6 289.30 149.30 4.1 13.6 5260Tullow @ 1.22k +34 1.61k 1.1k 1 25 10278UBM 737 -5 758.50 444.89 3.6 22.3 821Unilever 2.42k -10 2.44k 1.98k 3.2 20.7 2341UtdUtils 701 +11.5 816 583.50 4.7 14.4 4379Vedanta 1.11kxd +2 1.56k 820.52 3.5 37 1405Vodafone @ 162.50xd +.95 191.94 155.05 5.6 18.2 87765Weir 1.84k -29 2.24k 1.35k 1.8 12.8 1036Whitbrd 2.44kxd -17 2.56k 1.47k 2.2 16.3 592Willim H 337.40 -4.4 359.30 182.60 3 13.2 1498Wolseley 2.82kxa -42 2.93k 1.88k 6.5 17.7 1406Wood (J) 733.50 -35 883.50 601.50 1.4 26.4 2971WPP 870 +4.5 884.50 585.90 3 12.4 5264Xstrata @ 1.05k +1 1.29k 767.70 2.4 9.9 3937

NYSE (Dec 13 / 1:00 pm/US$)3M @ 92.52 -.6 95.46 77.52 2.6 14.8 273AbbottLb @ 65.32 -.69 72.47 53.80 3.1 15.9 516Accenture @ 69.58 -.93 71.58 51.08 2.1 18.1 194ACE @ 80.30 -.58 82.07 66.26 2 10.2 64AdvMicroD 2.40 +.03 8.34 1.81 - - 873AEP @ 43.02 -.46 45.40 36.98 4.4 14.4 177AES Corp 10.74 - 14.01 9.53 0.4 - 264Aetna 46 +.09 51.14 34.61 1.6 8.8 337AFLAC @ 53.83 -.36 54.93 38.14 2.5 8.9 217AgilentTec 40.10 -.41 46.28 32.51 1 12.3 285AGL Res 39.73 -.39 43 36.59 4.6 21.5 49Airgas 89.97xd -.39 92.99 74.87 1.7 21.1 34AirProd 82.87 +.31 92.78 76.15 3.1 17.8 61Alcoa 8.62 -.03 10.92 7.97 1.4 - 873Allergan @ 92.80 -.54 97.09 81.28 0.2 27.1 69Allstate @ 41.06xd -.1 42.81 25.86 2.1 7.8 156Altria @ 33.14 -.11 36.29 28 5.1 17.3 563Amer Intl @ 34.54 -.31 37.66 22.20 24.3 2.4 1633Ameren Cp 29.80xd +.02 34.84 28.44 5.4 35.5 135AmerExpr @ 57.68 +.01 61.42 45.89 1.4 13.4 467Amerip Fin 61.33 -.57 62.75 44.36 2.3 16.4 121Amertitrad 16.49 +.06 20.59 14.87 4.7 15.6 295AmerTwrA @ 76.10xd -.09 77 56.99 1.6 43.1 212AmsrceBrgn 42.75 +.04 43.25 35.48 1.4 15.5 223Anadarko @ 75.07xd -.47 88.68 56.42 0.5 20.7 253AOL 30.53xa -.38 37.90 11.66 16.9 2.8 82Aon Cp 56.83 +.38 57.91 44.37 1.1 19.8 200Apache @ 77.27 -.55 112.08 74.50 0.9 12.4 350ArcherDan @ 27.22 - 33.98 24.38 2.6 19.1 244AT&T @ 34.46 -.03 38.58 28.51 5.1 44.7 1563AutoZone 360.29 +2.73 399.10 313.26 - 14.9 45AvalnbyCom 132.91 -1.05 151.11 121.96 2.9 51.1 66AvonProds 14.34 +.01 23.57 13.71 5.2 53.3 289BakerHu @ 42.31 -.61 52.96 37.09 1.4 13.5 280Ball 44.74xd +.27 45.07 34 0.9 16.9 84BankAm @ 10.56xd -.05 10.71 4.92 0.4 29.5 4951Bard (C R) 96.57 -.41 108.30 82.54 0.8 16.3 30Baxter @ 65.69xd -.13 68.91 47.56 2.4 16 161BB & T @ 28.58 -.26 34.37 22.92 2.7 11.2 275Beam 61.42 +.03 64 48.70 1.3 26.7 68BectonDick 78.49xd -.12 80.56 70.06 2.4 14.7 87

52 week VolStock Price Chng High Low Yld P/e ’000s

52 week VolStock Price Chng High Low Yld P/e ’000s

52 week VolStock Price Chng High Low Yld P/e ’000s

52 week VolStock Price Chng High Low Yld P/e ’000s

52 week VolStock Price Chng High Low Yld P/e ’000s

52 week VolStock Price Chng High Low Yld P/e ’000s

52 week VolStock Price Chng High Low Yld P/e ’000sMARKET SUMMARY

BerkHatA @ 134.03k +31 136.34k 110.74k - 16.6 BerkHB 89.37 +.05 90.92 73.75 - 16.6 575Best Buy 14.08xd +1.9 28.46 11.42 4.7 - 3485BkNYMeln @ 24.68 +.15 25.35 18.42 2.1 12.8 388BlackRock @ 200.85xd +.18 207.30 160.25 3 15.5 33Blackstone 14.66 -.36 17.25 11.13 3.5 - 92Block 18.81xd +.11 18.88 14.36 4.3 15.1 218Boeing @ 74.83 -.64 77.83 66.84 2.4 13.2 363BorgWrnr 66.40 -.6 87.40 60.18 0.5 16.1 67BostonPrp 104.04 -.23 117 91.90 2.2 53.2 32BostonSci 5.68 +.01 6.41 4.79 - - 843BrisMySq @ 32.86 -.35 36.34 30.64 4.2 30 554Brwn-FmnB 63.56xa -.44 66.86 48.33 1.5 24.5 43Cameron 54.06 -.94 59.99 38.38 - 21.2 153Campbell 35.91xd +.04 37.16 31.22 4 15.2 91CapOne @ 58.03 -.39 61.83 41.28 0.3 9.5 114CardinalH 41.83 -.05 44.49 36.93 2.3 13.2 133Carefsn 28.27 +.04 28.98 22.55 - 17.1 37Carmax 35.10 -.16 36.64 24.84 - 19.8 106Carnival @ 37.78xa -.09 38.88 28.76 2.6 20.7 312Caterpillar @ 88.26 +.31 116.95 78.25 2.3 9 463CBRE Gp 19.41 -.28 21.15 14.18 - 29.2 100CBS @ 35.38xd -.73 38.32 24.49 1.2 15.3 203Centrpnt 19.88 +.03 21.81 18.08 4.1 21.3 202CenturyLk @ 39.02xd -.05 43.43 34.82 7.4 37.2 209CharlesSch 13.77 +.1 15.53 10.72 1.7 20.5 481ChesapEgy 16.77 -.19 26.09 13.32 2.1 - 745Chevron @ 107.97 -.11 118.50 95.74 3.3 8.9 328ChipMexG 277.59 +2.08 442.34 234 - 32.3 24Chubb @ 77.51 +.07 81.80 66.38 2.1 11.2 119Cigna 53.69 -.27 54.31 39.34 0.1 10.2 95Citigroup @ 37.30 -.23 38.71 24.41 0.1 15.7 1695Cliff sNat 32.34 +.22 78.85 28.05 6.7 5 608Clorox 75.68 -.07 76.73 64.50 3.3 18.3 62CMS Egy 24.51 +.05 24.98 20.40 3.9 18.8 180CNA Fin 28.62 +.24 31.50 25.50 2.1 9.3 11CnstelBdA 35.41 -.22 36.98 18.50 - 17.5 120Coach 56.84xd +.41 79.64 48.24 2 15.9 473Coca Cola @ 37.74xa +.1 40.66 33.04 2.7 19.7 885CocaCoEnt 31.32 -.16 32.54 24.88 2 13.8 497ColgPalm @ 106.37 -.62 110.95 87.22 2.3 20.8 126Comerica 28.99xd -.28 34 24.03 1.9 11.7 190CompSci 39.83 -.01 40.34 22.19 2 - 158ConagraFds 30.17 -.11 30.55 23.64 3.2 19.9 251ConocPhil @ 57.81 -.39 59.67 50.63 4.6 10.4 428ConsEdsn 34 -.25 39.51 26.42 1.5 18 149ConsolEd 56.04xd -.3 65.98 53.63 4.3 14.7 128Corning @ 12.84xd +.11 14.62 10.62 2.5 10.1 842CoventryHlt 44.64 +.01 44.95 27.72 1.1 13.8 66Covidien @ 57.94xd -.48 60.80 41.69 1.7 14.8 101CSX @ 19.79xd +.15 23.71 18.88 2.7 11.1 722Cummins @ 106.18 +.3 129.51 82.20 1.7 11.1 141CVS @ 48.61 +1.07 49.76 36.44 1.3 16.3 1517Danaher @ 54.95xd +.28 57.15 45.06 0.2 17.5 394DardenR 45.86 +.06 57.88 42.72 4.1 12.5 276Davita 107 -.41 116.47 72.46 - 19.3 53Deere @ 85.39 -.86 89.69 69.51 2.2 11.2 214

DenburyRs 15.91 -.09 21.36 13.14 - 13.4 200DevonEngy @ 52.42xd -.49 76.33 51.49 1.5 31.1 177DiamOfsh 67.70 -.52 73.35 52.98 5.2 12.5 94DiscvrFin 40.22 -.78 42.08 22.84 1 9.3 249Disney @ 49.12xd -.52 53.40 34.52 1.5 15.7 583DominRes @ 51.42xd -.14 55.62 48.87 4.1 24.9 95Dover 64.12xd -.05 67.20 50.29 2.1 13.8 84DowChem @ 31.29 +.14 36.08 25.23 3.6 24.1 677DrPepper 44.68xd -.5 46.06 36.53 3 15.3 63DTE Engy 61.13 -.42 62.54 51.32 4 15.4 62DukeEner @ 63.99xa -.31 70.35 59.63 4.7 20.3 172DuPont @ 44.01xd -.29 53.98 41.68 3.9 13.9 443Eaton 52.01 -.03 53.05 36.38 2.9 12.6 239Ecolab @ 70.57 +.06 72.78 54 1.2 36.6 92EdsnInt 44.58 -.22 47.96 38.73 2.9 - 211EdwLifesc 90.73 +.14 110.79 64.06 - 40.5 26EMC @ 24.54 -.13 30 21.26 - 20.1 1750Emerson @ 51.61 -.01 53.78 43.59 3.1 19.3 228Entergy 63.73 -.03 73.97 61.56 5.2 16.1 45EntPrdPrt 49 -.36 55.38 44.59 5.2 17.2 142EOG Res @ 119.77 -.97 124.49 82.49 0.6 27.1 103EqResPrp 55.32 -.05 65.72 52.95 3.2 - 130EQT 57.30 -.9 62.74 43.70 1.5 38.1 38EsteeLdrA 60.07xd -.33 65.53 49.81 1.2 27.1 74Exelon @ 29.75 -.15 43.83 28.40 6.6 15.9 424ExxonMob @ 88.77 -.68 93.60 77.13 2.5 9.4 867Fedex @ 89.73xd +.02 97.19 76.95 0.6 14 123FidltyNFn 23.17xd -.14 24.27 15.17 2.5 9.7 129FirstEgy @ 40.62 -.58 51.13 40.37 5.4 16.1 272Flowsrve 141.53 -.34 144.56 95.37 1 17.7 17Fluor 57.28xd -.24 64.65 44.99 1.1 15.8 196FMC Tech 42.07 -.27 55.17 36.89 - 24.8 116Ford @ 11.32 -.15 13.05 8.82 1.8 2.6 2440ForestLabs 36.05 -.26 37.69 28.47 - 17.7 121Franklin @ 126.67xa +.05 130.85 90 4.8 14.2 42Freeport @ 32.51 -.01 48.96 30.55 3.7 10.6 1333GAP 31.45 +.02 37.85 17.72 1.6 15.4 547GenDyn @ 68.45 -.45 74.49 61.09 3 10 120GenElectr @ 21.68 -.1 23.18 16.30 3.1 16.1 2079GenMills @ 41.53 +.25 41.62 36.75 3.1 16.2 251GenMot @ 25.20 -.43 27.67 18.72 3 9.5 796GenuineP 63.16xd +.01 66.88 55.58 3.1 15.9 45GoldmSchs @ 118.40xd +.31 128.70 86.90 1.5 11.4 179Grainger 191.84 -.25 221.79 172.63 1.6 20.4 39Halliburton @ 33.50xd -.55 39.19 26.29 1.1 10.7 558HarleyDavid 48.35 -.85 54.31 36.06 1.3 18.3 215Harris 48.74 -.32 52.22 33.76 2.9 41.3 37Hartford 21.80xd -.13 23.28 14.95 1.8 15.1 277HCP @ 44.57 -.64 47.64 37.81 4.5 29.9 165Heinz @ 58.79xd +.13 58.98 51.36 3.4 18.5 114Helm&Pyn 54.16 -.48 68.60 38.71 0.7 10.3 124Hershey 73.83xd +.43 73.95 58.50 2.1 25.9 75Hess @ 51.85xd -.17 67.85 39.67 0.8 11.6 245Hew-Pack @ 14.53xd - 30 11.35 3.6 - 1703Hillshire 28.53 +.27 30.38 24.31 8.1 - 128HlthCare 58.85 -.68 62.79 49.78 5 - 172HomeDep @ 62.68 -.25 65.92 38.85 1.9 22.2 433

Honywell @ 61.63 +.53 63.89 51.43 2.5 20.7 286HormelFd 31.09 +.04 31.49 27.28 2 16.7 31HortonDR 18.99xd -.22 22.78 11.65 0.8 7 480Hospira 31.95 +.15 38.48 27.63 - - 75Host H&R 15.19 -.04 17.57 13.60 2 - 271Humana 67.38 -.22 96.45 59.92 1.5 9 93IBM @ 192.04 -.91 211.76 177.35 1.7 13.8 337IllinoisTool @ 62.11 - 63.32 45.49 2.4 15.2 141IngersollR 47.92xd +.23 50.03 29.69 1.3 14.5 144Int.Paper 37.70xd +.32 38.41 26.99 2.9 20.5 450Intercont 129.02 -.68 142.75 110.67 - 17.2 28Interpubl. 10.80xd -.09 12.17 8.83 2.2 15.3 344IntlFl&Fr 65.45 -.01 66.22 51.21 2 25.6 26IntlGmeT 14.40 -.05 18.10 10.92 1.7 16.5 194INVESCO 25.32 -.1 26.94 18.55 2.5 16 151IronMount 30.93 -.32 35.48 24.17 16.5 27.1 78JacobsE 41.83 -.32 48.15 33.61 - 14.2 40JMSmckr 87.33 -.5 89.38 70.51 2.3 20.3 22John&John @ 70.81 -.15 72.74 61.71 3.4 23.3 543JohnsonCn @ 28.53xd -.12 35.95 23.37 2.6 16.6 200JPMrgnCh @ 42.70 -.07 46.49 30.43 2.8 9.1 980JuniperNtw 19.34 +.37 25.04 14.01 - 55 426Kellogg @ 56.65xd +.05 57.21 46.33 3.1 17.1 95Keycorp 8.17xd -.03 9.09 6.81 2.2 9.3 969Kimb-Clark @ 85.82xd +.32 88 69.45 3.4 18.1 136Kimco Real 19.24 -.09 21.15 15.29 4.1 65.9 143KindMnE 78.30 -.05 90.60 74.50 6.2 50.7 67KohlsCp 43.86xd +.11 55.24 42.73 2.9 10.1 323Kroger 26.44 -.15 27.11 20.99 1.9 18.8 525L3 Comms 75.91xd -.23 77.68 61.25 2.6 8.6 25LabCpAmer 87.51 +.37 95.30 80.68 - 14.4 63LasVegasSd @ 45.60xa +.26 58.31 32.61 7.7 26.5 295Lennar 37.40 -.47 39.33 18.21 0.4 14 329Leucadia 23.49xd -.32 29.79 19.58 1.1 11.4 150Lilly (E) @ 48.41 -.59 53.96 38.30 4 13.1 589Lim.Brands 50.06 -.11 52.50 37.58 14 21.5 151LincolnNat 25.61 -.16 27.54 17.78 1.4 17.8 151Lockheed @ 90.34xd -1.47 95.89 76.03 4.6 10.3 256Loews 41xd -.44 43.36 36.42 0.6 18.7 87Lorilliard 118.87 -.91 141.07 106.83 5.2 14.2 72Lowe’s @ 34.67 -.06 36.47 24.05 1.8 20.5 686LSI 6.93 -.14 9.20 5.33 - 21.8 316M&TBkCp 98.06xd -.05 105.33 70.40 2.9 15.3 58Macys 38.56xd -.3 42.17 30.42 2.1 12.1 241MarathonOil @ 30.28 -.23 35.49 23.17 2.2 11.9 292Marriott 35.76xd -.16 41.84 27.93 1.4 22.4 89MarshMcL @ 34.58 -.16 35.78 30.16 2.6 16.5 124MarthnPet @ 61.59 +.07 62.76 30.24 1.9 8.2 217Masco Cp 16.26 - 17.19 8.57 1.8 - 217Mastercard @ 483.61 +.17 494.31 336.27 0.2 28 49McDonalds @ 89.25xd -.06 102.22 83.32 3.2 16.8 379McGrawH 55.64 -.41 57.44 42.03 6.3 20.1 202McKesson @ 97.15xd -.15 98 74.89 0.8 14.9 76Mdwstvco 30.42 -.23 31.34 24.78 3.3 30.7 119MeadJohnN 65.64xd -.4 88.72 60.68 1.8 24.2 85Medtronic @ 42.26xd -.37 44.79 34.99 2.4 13.6 193

Merck @ 44.16xd -1.1 48 34.87 3.8 20.1 1168MetLife @ 33.45xd -.16 39.54 27.65 2.2 16.3 1667MGM Rsts 11.36 +.04 14.94 8.84 - - 671Mohawk 81.25 -.47 89.28 52.01 0 24.8 26MolsonB 43.05xd -.06 46.35 37.96 3 14.2 69Monsanto @ 89.89 +.14 93 67.11 1.5 23.8 185Moodys 48.61 -.64 49.94 32.27 1.4 17.6 45MorganStly @ 17.75 +.05 21.19 12.26 1.1 - 1010Mosaic @ 55.37 -1.07 61.97 44.43 1.2 13.1 213MotorolaSol 54.40xd -.12 55.46 44.18 1.8 23.1 30MurphyOil 58.80 +.21 62.73 41.40 6.3 16.6 155Nabors 13.96 -.57 22.73 12.40 - 20.6 384NewelRbm 22.04xd -.13 22.48 14.65 2 17.1 162NewmontM @ 44.04xd -1.46 65.94 42.95 3.2 - 533NextEraE @ 69.82xd +.59 72.22 56.61 3.4 13.6 242Nike @ 97.91xd -1.29 114.76 85.10 1.5 21.3 174NiSource 24.25 -.13 26.15 21.68 3.9 23.2 164NobleCp 34.16 -.59 41.71 28.74 1.6 16.7 154NobleEgy 99.95 -1.87 105.43 76.83 0.9 46.5 102Nordstrom 52.28xd +.17 58.43 46.27 2.1 16 147NorfolkS @ 61.50 -.03 78.49 56.05 3.2 11.2 125Northrop 67.73 -.42 71.25 55 3.2 8.7 126NtlOilVarc @ 65.53xd -.95 89.25 59.07 0.7 11.7 662Nucor 41.26 +.04 45.75 34.24 3.5 26.1 220NYSE Eurnxt 23.29xd -.15 31.25 22.25 5.2 13.8 205OccidPet @ 75.64xd -.78 106.67 72.43 2.9 10.4 339Omnicom 49.33xd -.18 54.75 41.05 2.4 14.4 121ONEOK 43.35 -.24 89.62 39.32 2.9 26.3 116ParkHn 82.91 -.21 91.44 70.49 2 11.7 102PeabdyEngy 28 +.45 38.96 18.78 1.2 9.5 476Penney 20.54 +1.09 43.18 15.70 2.9 - 811Pepsico @ 70.33xd +.09 73.65 62.15 3 18.7 379Pfi zer @ 25.40 -.11 26.08 20.23 3.5 20.2 1954PG&E @ 40.66 -.09 47.02 37.86 4.5 18.8 152Phillips66 51.77 -1.45 54.30 28.75 0.9 6.1 646PhilMorris @ 88.18 -.6 94.13 72.86 3.7 17.6 494PinnWstCp 51 -.24 54.66 45.11 4.2 15.1 44PionrNat 103.72 -1.88 119.19 77.44 0.1 - 67Plum Creek 42.81 -.13 44.99 34.50 3.9 37.4 65PNCFin @ 56.66 -.04 67.88 53.36 2.7 11.5 206PP&L 29.06xd - 30.18 26.68 5 10.4 666PPG Inds 125.21 +.66 125.84 78.80 1.9 20.9 103Praxair @ 107.96xd +1.33 116.92 101.16 2 19.2 113PrecParts @ 183.84xd -.67 187.36 150.70 0.1 20.2 40PrinFinGp 27.78xd -.22 29.95 22.82 2.8 11.7 108ProctGmbl @ 70.11 -.65 70.99 59.08 3.2 22.9 1114ProgreOh 21.23 -.19 22.37 17.03 6.6 14.2 307Prologis 35xd -.27 37.58 26.65 3.2 - 172Prudential @ 52.72xd +.05 65.16 44.47 3 20.4 198PublicSVC 30.09xd -.19 34.06 28.92 4.7 10.8 183PublStor @ 139.26xd -1.62 151.73 124.71 3.2 39.1 72QEP Res 30.09 +.13 35.60 24.35 0.3 35.6 161QuestDg 58.87 -.02 64.85 53.25 1.4 13.7 29RalphLrn 149.88xd -.62 182.48 134.29 0.9 21.1 77RangeRes 64.98xd -.86 73.92 52.35 0.2 - 116Raytheon @ 57.90 -.24 58.69 44.57 3.5 9.9 83Red Hat 50.18 -.17 62.72 39.19 - 67.1 72

Reg.Financ. 6.75xd -.03 7.73 3.79 0.6 14.9 565RepSrv 29.07 +.16 31.31 25.15 3.1 16.9 160ReynoldsAm @ 42.98xd +.11 46.91 38.96 5.4 16.3 224Rockwell 81.94 -.16 84.62 61.21 2.2 16 53RockwlColl 57.14 +.18 61.46 46.40 2 13.8 54RoperInd 111.91 -.25 113.34 81.19 0.5 24.1 28Safeway 17.74xd -.11 23.16 14.73 3.8 9.5 452SAIC 11.49 +.04 14.20 10.31 3.1 22.6 206Salesforce @ 166.46 -.57 168.01 94.09 - - 137Schlmbrg @ 72.59xd -.2 80.78 59.12 1.5 17.7 854ScrippsNtwk 58.18 -.13 66.33 41.07 0.8 17.7 28Sempra 71.47 +.11 72.28 51.53 3.2 20.3 74SherWil 147.07 -.8 159.70 82.37 1.1 26.7 66SimonProp @ 154.02 -2.38 164.11 119.49 2.8 31 387SouthCpr @ 38.03 -.18 39.42 27.73 9.7 16.7 194Southern @ 43.27 -.11 48.58 41.75 4.5 17.1 311SpectraEn @ 26.96 -.11 32.26 26.56 4.2 17.5 703SprintNext 5.66 - 6.04 2.10 - - 4599Starwood 53.67xd +.06 61.09 44.14 2.3 18.8 159StateSt @ 45.35 -.06 47.15 38.21 2 11.5 138StJudeMed 35.63 +.1 44.79 30.25 2.6 14.9 162Stryker @ 56.07 -.06 57.14 45.61 1.6 15 91Suntrust 27.20xd -.57 30.79 15.79 0.7 8.9 325SW Airl. 10.06xd +.04 10.23 7.76 0.3 15.7 459SwestEgy 33.36 -.72 36.87 25.63 - - 306Sysco @ 31.96 -.08 32.09 27.06 3.4 17 205TargetCp @ 61.08 +.54 65.79 47.25 2.2 13.5 433TE Conn 36.36xd -.12 37.68 29.70 2.2 13.5 205Teradata 59.89 -1.3 80.97 43.78 - 25.4 117Teva 39 -.47 46.65 37.40 2.6 16 775Textron 24.09xd +.09 29.18 16.87 0.3 17.1 148TheTrvelers @ 73.64xd +.33 74.70 55.39 2.4 10.5 137ThrmoFshr @ 64.99xd -.16 65.54 43.40 0.8 20.7 104Tiff any 57.47 +.08 74.20 49.73 2.2 17.7 153TimeWrnr @ 46.77xd -.49 47.89 33.42 2.2 17.7 464TimeWrnrC @ 94.05xd +.26 100.50 60.71 2.4 13.5 137TJX @ 42.37 -.2 46.67 30.68 1.1 20.7 239Torchmrk 51.74 -.35 53.12 41.56 1.2 10.2 96TotalSys 21.95xd -.25 25 18.89 1.8 17.2 73TrnsOcean 44.92 -.86 59.02 38.22 5.3 - 149TycoInt @ 28.68 -.06 29.26 21.80 3.1 48.1 288UnionPac @ 124.89xd +.19 129.27 97.83 2 15.5 97UNUM Grp 21.08 -.01 24.81 18.28 2.2 24.1 129UPS B @ 73.45 +.02 81.79 69.56 3.1 21.2 137USBancorp @ 31.76 -.11 35.46 25.44 2.5 11.3 639UtdHlthcre @ 54.77xd -.48 60.75 47.63 1.5 10.4 253UtdTech @ 80.64 -.36 87.50 70.72 2.5 13.9 497ValeroE 32.32 -.47 34.35 19.12 2 16.1 445VarianMedS 71.85 -.23 72.61 52.90 - 19 52Ventas @ 63.69xd -1.38 68.07 50.55 3.9 46.6 164Verizon @ 44.66 -.13 47.32 36.80 4.5 41.6 488VF Cp 147.80xd -1.92 169.82 125.56 2.1 16.4 37Visa @ 147.31 -.57 150.70 95.06 0.7 47.1 215Vornado 76.90xc +.11 87.32 70.25 3.6 43.6 50VulcanMat. 51.61 +.31 53.84 31.87 0.1 - 34Walgreen @ 36.56 -.11 37.34 28.53 2.7 15.1 736WalMart @ 69.27xd +.33 77.50 57.18 2.3 14.3 1487

WasteMng 33.65xd +.15 36.35 30.81 4.2 18.2 249WatersCp 87.36 -.25 94.45 70.89 - 18.5 15Weatherfd 10.56 -.12 18.33 8.84 - 23.1 753Wellpoint @ 58.77xd -.47 74.73 52.52 2 7.8 181WellsFargo @ 33.35 -.15 36.60 25.19 2.3 10.5 1394WestUnion 13.27xd +.04 19.82 11.94 3.2 6.6 597Weyerhsr 27.52 -.21 28.82 16.27 2.3 48.5 147Whirlpool 101.06xd -.24 103.50 45.22 2 16.4 60WilliamsCp @ 31.37xd +.24 37.56 24.79 3.8 29.5 5824WiscnsnE 37.35 -.21 41.48 32.48 3.3 15.5 71XcelEngy 27.17 -.04 29.92 25.68 3.9 14.6 136Xerox Cp 7.09 +.01 8.83 6.10 2.4 7.9 533XL Grp 24.79xd -.11 25.77 18.86 1.8 - 174Xylem 26.74xd -.1 28.83 22.45 1.5 18.1 18Yum!Brands @ 67.80 +.16 74.74 57.10 1.8 19.9 340ZimmerHld 67.45 -.1 69 47.01 0.8 15.8 47

NASDAQ (Dec 13 / 1:00 pm/US$)ActivBlz 11.52 +.02 13.01 10.45 1.6 14.8 2307Adobe 35.27 -.69 36.50 26.25 - 19.5 2812Amazon @ 250.71 -1.06 264.11 166.97 - - 1186Amgen @ 89.01 -1.16 90.81 57.14 1.6 15.9 1234AnalogDev 41.48xd -.55 42.45 33.38 2.9 19.5 632ApolloGp 21.59 +.58 58.29 18.36 - 6.7 1367AppldMat 10.99 -.11 13.94 9.95 3.3 - 4471Apple @ 530.34 -8.66 705.07 377.68 1 12 11547Autodesk 33.62 -.67 42.69 27.70 - 31.9 1144BedBathB 58.06 -.12 75.84 55.58 - 13.5 1855Biogen @ 151.53 -.82 157.18 109.05 - 26.3 245BMCSware 40.08 -.72 45.70 31.62 - 19.3 679Broadcom 33.42 -.92 39.66 27.59 1.2 26.4 6202CA Inc 21.81 -.04 28 19.80 4.6 11.1 3805Celgene @ 79.68 -1.51 82.78 58.53 - 22.1 1290CH Rob 61.60xd -.31 71.76 50.81 2.2 22.4 281CheckPnt 46.26 -.15 65 40.60 - 16.1 511Cisco @ 19.67xd -.06 21.30 14.96 2.2 12.7 17928Citrix 63.87 -.11 87.99 56.57 - 34.8 630CmcstASp 35.57 -.6 36.90 22.19 1.8 - 1554CME Group @ 50.99xa -.51 59.42 43.35 4.7 11.5 1718Cognizant @ 71.91 -.29 78 53.92 - 21.8 926ComcastA @ 36.71 -.71 37.96 22.37 1.8 16.7 4372Costco @ 97.50xa -.22 99.65 73.60 8.3 23.7 1600Dell 10.53 -.04 18.36 8.69 1.5 5.4 8570DirectTV @ 50.07 -.2 55.17 41.45 - 12.3 1778EBay @ 50.96 -.9 53 29.08 - 17.4 3484ElectArt 15.23 -.1 22 10.77 - - 1141Expedia 58.85xa -1.2 62.26 25.07 1.6 23.1 1430ExpIntWsh 37.92xd -.12 47.48 34.20 1.5 23.6 560ExpScripts @ 54.01 -.29 66.06 43.02 - 29.7 2536Facebook 28.59 +1 45 17.55 - - 46339Fifth 3rd 14.55 -.07 16.16 11.67 2.3 9.4 5179First Solar 31.82 -.18 50.20 11.43 - - 3619Fiserv 79.80 -.44 81.26 56.29 - 18.8 412Fossil 90.45 - 139.20 62.77 - 18.2 146Garmin 40.79xd -.29 50.67 35.55 4.3 13.8 684GileadSci @ 75.02 -1.21 77.12 36.98 - 23.4 1904Google @ 702 +4.44 774.38 556.52 - 22 2158Hasbro 37.25xd -.52 39.98 31.51 3.9 14.5 433Intel @ 20.55 -.12 29.27 19.23 4.2 9 21870Intuit 59.79 -.49 62.33 50.89 1.1 23.7 378IntuitSrg @ 534.73 -4.84 594.89 420.84 - 34.6 89KLA Tenc. 46.41 -.67 55.43 43.21 3.2 11.3 578LibIntCpA 19.30 +.05 20.95 13.52 - - 3328LifeTch 50.45 -.45 51.71 37.97 - 22.2 721LinearTec 33.51xd -.95 34.62 28.28 3 15.8 1486Marvell 8.32xd -.16 16.86 7.05 2.2 14.3 3584Mattel 36.98xd -.21 37.96 27.13 3.4 15.4 697MaximInt 29.40 -.69 30.43 23.55 3.1 25.2 1364MicronT 6.65 -.06 9.16 5.16 - - 10900Microsoft @ 27.05 -.19 32.95 25.29 3.2 14.6 20571MondelezInt @ 25.84 -.2 28.48 23.57 4.5 13.9 3167Netapp 33 -.25 46.80 26.26 - 26.1 3802NewsCorpA @ 24.47 -.33 25.50 16.68 0.7 22.3 5603NewsCorpB 25.18 -.35 25.96 17.28 0.7 - 1561NII Hldgs 5.98 +.62 24.32 4.75 - - 5756NorthnTst 47.62xd -.1 49.68 38.15 2.5 17.9 245Nvidia 12.46xd -.07 16.90 11.15 0.6 15.4 4520Oracle @ 31.46xd -.49 33.29 24.91 1.1 15.6 11065PACCAR 44.22xd -.42 48.22 35.21 3.6 13.3 947Paychex 33.67 -.15 34.70 28.76 4.8 22.2 974Prclne.cm @ 615.97 -8.76 774.96 438.76 - 23.3 310Qualcomm @ 62.83xd -.66 68.87 51.76 1.5 20.5 6734RschMt 13.92 +.61 17.96 6.22 - 3.3 47374SeagateT 27.92xd +.17 35.71 15 4.5 3.7 3488Sears Hld 42.62 +.24 79.99 26.90 - - 375SiriusXM 2.81 +.03 2.97 1.72 1.8 5.4 29074SLM Cp 17.09xd +.01 17.99 12.85 2.9 7.9 1010Staples 11.96xd +.26 16.93 10.57 3.7 - 5491Starbucks @ 53.39 -.21 62 42.67 1.3 29.8 3138Symantec 18.58 -.17 19.54 13.06 - 11.6 3072T.RowePr 64.11xd -.88 66.66 53.57 2.1 20 447TexasInstr @ 30.63 -.43 34.24 26.06 2.4 20 3917VertexPhm 42.14 -.11 66.10 28.49 - 72.2 1191ViacomB @ 53.45xd -.71 56.91 41.98 2 12.2 4369WestDigtl 37.96xd +.1 45.94 28.31 1.3 5.1 1392WynnRes 113.66 +.2 138.28 90.11 12.8 21.7 551Xilinx 35.42 -.27 37.74 30.25 2.4 19.2 1069Yahoo @ 19.45 +.07 19.63 14.35 - 5.9 7225

Other International StocksAUSTRALIA (Dec 13/Aust$)AMP 4.75 -.04 4.85 3.71 6.8 18.7 13521ANZ @ 24.68xd -.02 27.63 20.26 8.4 11.6 5809BHP Biltn @ 36 +.24 38.25 30.09 4.2 12.7 11335Brambles 7.31 +.06 7.69 6.04 3.9 19.2 5425CCAmatil 13.33 -.23 14.19 11.30 5.8 14.8 5735CmwBkAu @ 61.28 +.08 61.62 47.50 7.8 13.7 2565CSL @ 54.32 -.2 55.20 29.61 1.5 28.7 1256FortescMet 4.25 -.03 6.18 2.81 2.7 8.7 15810Leighton 16.84 +.01 26.65 14.71 4.8 - 531MacQuarie 33.40 -.17 34 22.79 4.5 14.5 1658NatAusBk @ 24.60xd -.06 27.13 21.95 10.5 11.5 7266NewcrestM @ 23.54 -.2 36.10 20.89 2.4 16.1 4678NewsCorpA 23.51 -.26 24.90 16.70 0.6 - 601NewsCorpB 24.18 -.22 25.20 17.37 0.6 52.4 2570Orica 23.66xd +.3 28.27 22.86 4.6 21.7 2463OriginEgy 11.33 +.08 14.80 9.84 6.3 12.5 1956QBE InsGrp 10.55 -.11 14.71 9.88 6.7 14.7 3354RioTinto 62.75 +.55 72.30 48.37 3.5 25.3 2325Santos 11.16 +.03 14.63 10.04 3.8 20.3 5241Stockland 3.38 +.04 3.64 2.90 7.1 16 7987Suncorp 10.05 -.02 10.30 7.33 7.8 17.7 3009Telstra @ 4.26 -.02 4.39 3.18 9.4 15.5 45679Wesfarm @ 35.85 -.43 36.62 28.25 6.6 19.5 2487Westfi eld @ 10.60 +.02 10.76 7.68 4.6 14.5 7084Westfl dRT 3 - 3.19 2.34 5.9 11.2 8701Westpac @ 25.98xd +.08 26.12 19.94 9.1 13.3 5351WoodsdPt @ 34.40 -.05 38.16 30 4.7 18.4 1874Woolworth @ 29.53 -.3 30.62 23.96 6.1 19.9 3578

AUSTRIA (Dec 13/Euro)Andritz 49.54 +.43 50 30.27 2.2 20.6 91ErsteGrBnk 23 +.18 23.02 11.22 - 11.7 495Immofi n 3.36 +.07 3.36 2.14 7.4 12.9 2239OMV 28.22 +.04 29.21 21.21 3.9 7.3 194Raiff eisen 31.50 -.08 33.80 17.12 3.3 7.1 120Strabag 21.37 -.33 23.50 17.03 2.8 - 27TelekAust 5.30 +.16 9.35 4.51 0.9 - 640Verbund 18.45 +.1 23.20 14.50 3 18.1 123Vienna Ins 38.22 +.47 38.22 25.74 2.9 3.7 88Voestalp 26.07 -.16 28.50 19.05 3.1 17.2 294

BELGIUM/LUX (Dec 13/Euro)Ackermans 60.47 -.57 65.97 53.02 2.7 13.2 31Ageas 22.10xa +.22 22.15 11.51 3.6 11.1 843AnBshInBv @ 66.88 -.4 71.05 43.63 1.8 18.7 1590Belgacom 22.08xa +.29 24.40 20.37 9.9 9.7 431Colruyt 35.91 -.12 38.68 27.43 2.6 16.2 118Dlhaiz 29.64 +.26 46.91 25.59 5.9 8 555GBL 59.25 -.03 60.90 48.80 4.4 8.8 90KBC 24.10 +.66 24.32 9 0 47.3 3706SES 21.71 -.07 22.65 17 4.1 - 2Solvay 106.35 -.3 107.65 60.86 2.9 23.1 222Telenet 35.10 -.13 37.15 26.91 12.1 - 267UCB 44.51 -.29 46.14 29.12 2.2 46.5 146Umicore 40.31 +.11 44.90 29.75 2.7 16.3 306

BRAZIL (Dec 13 / 12:00 am/Real)Ambev @ 88.24 +.24 90 62.14 0.9 33.2 1091BcoBrad 35.16xd +.64 36.12 22.57 3 - 2834BcoSantdr 0.14xd - 0.18 0.13 3.4 - 1296BM&FBovsp 13.63xd -.06 13.95 8.84 3.5 25.1 4752BncBrasil @ 22.68xd -.52 29.79 18 11 5.6 4489Bradesco @ 36.13xd +.29 36.48 26.60 3.2 12.3 5294BrasilFds 40.38 -.32 40.88 27.53 2.8 - 2456Cielo 54.60 -.5 64.11 38.45 4 16.2 613Eletrobras 6.58 -.08 19.52 6.03 136.2 - 1109GerdauPf 18.20 -.24 21.67 13.40 1.9 14.9 2719ItauHldFin @ 32.87xd +.01 38.94 26.73 3.5 11.1 4745ItuasaPf @ 9.69xd -.01 11.49 7.99 3.3 9.9 6257JBS 5.77 +.23 8.50 4.91 - 24.7 5043OGX Petro 4.69 -.04 18.41 4.28 - - 31636PetrobasPf 19.55 -.3 25.89 17.42 9.9 13.8 21152Petrobras @ 19.75 -.31 28.26 18.05 9.8 - 3121SiderNacO 11.52 -.11 19.55 9 7.1 - 2666SouzaCruz @ 31.96 -.36 32.68 21.48 12.6 29.3 434UsinasMin 12.24 +.09 13.77 5.57 8.9 25.5 2436ValRio @ 39.36 -.04 46.30 32.21 13.5 - 2125ValRioPrf 38.29 -.09 44.30 31.73 5.2 8.3 12425

CANADA (Dec 13 / 1:00 pm/Can $)Agnico-E 52.63xd -.86 56.99 31.50 1.5 - 340Barrick @ 33.82xd -.74 50.33 31.18 2.2 10.3 921BCE @ 42.57xd +.28 45.28 39.12 5.2 13.7 797BkMontrl @ 60.03 -.08 61.29 53.15 4.7 9.8 449BkNvaS @ 56.74 -.14 57.17 48.24 3.9 10.9 662Brookfi eld @ 35.02 -.23 35.52 27.03 1.6 17 201Cameco 19.12 -.09 26.43 16.50 2.1 15.6 315CanadPcR 98.71 +.14 100.85 63.59 1.4 24.6 143CanImp @ 81.61 +.23 81.68 69.13 4.5 10.4 328CanNatRs @ 28.16xd +.1 41.12 25.58 1.5 13.1 1130CanNatRy @ 89.91xd -.01 92.20 74.22 1.7 14.9 339CanOilSd 19.51 -.24 25.19 18.21 6.9 9.5 634CenovusE @ 32.70xd -.64 39.64 30.09 2.7 18 811Enbridge @ 42.28 +.02 42.53 35.39 2.7 40.9 664Encana 20.23xd -.21 23.86 17.25 3.9 - 918Goldcorp @ 36.57xd -1.06 50.17 32.34 1.5 20.3 1001GtWesLif @ 23.66xd +.14 25.28 19.15 5.2 10.9 113HuskyE @ 29xd -.14 29.28 22.04 4.1 14.7 243ImpOil @ 41.53xd -.82 49.26 39.77 1.2 9.6 267KinrossG 9.60 -.32 13.38 7.15 1.6 - 1154Loblaw 41xd -.45 42.05 31.11 2.1 16.9 364Manulife @ 13.12xd +.02 14.07 10.18 4 54.1 1993NatBkCan 77 -.15 81.27 66.77 4.1 8.3 233Nexen 26.52xd -.03 26.70 14.20 0.8 38.2 479Potash @ 40.12 -.3 47.94 37.02 1.7 11.6 462Power Cp 24.72xd +.02 27.42 21.70 4.7 11.1 139PowerFn @ 26.84 -.01 30.15 24.06 5.2 10.3 168ResMot 13.72 +.58 18.23 6.10 - 3.1 6888RogCmB @ 44.96xd +.02 45.21 34.75 3.5 15.6 263RylBkC @ 59.29 +.02 59.41 47.71 3.9 11.9 743Suncor En @ 31.70xd -.5 37.28 26.97 1.6 10.4 1235

SunLfFin 27.84xd -.06 28 18.06 5.2 28.5 249TalismEnrgy 11.08xd -.01 14.69 9.72 2.4 - 1422TeckResB 34.76xd -.22 44 26.02 2.4 15.7 771TelusCorp @ 65.48xd +.34 65.79 54.87 3.7 16.8 163ThmReut @ 28.50xd -.2 30.25 26.10 4.4 - 175TntoDom @ 80.85 -.23 85.85 71.69 3.7 11.9 460TransCan @ 45.68 +.04 46.29 40.34 3.9 23.5 611Weston Ltd 70.22xd -.67 70.89 57 2.1 19.2 49

CHINA (Dec 13/Renminbi)AgricBkCh 2.68 - 2.77 2.38 4.9 6.2 61081Air China 5.03 -.01 7.43 4.50 2.3 16.8 10000AluCorpCh 3.46 -.02 4.45 2.86 - - 24929AlumCpCh 4.75 -.07 7.89 4.55 - - 10284AnhuiCC 28.50 +.05 28.95 19.10 1.5 14.5 9961BaoshanStl 4.71 -.04 5.36 4.07 - 6.9 16637Bk China 2.83 -.01 3.10 2.58 5.5 6 36295BkofComms 4.37 -.07 5.10 4.07 2.3 5 77458ChCiticBk 3.81 -.05 4.73 3.49 3.8 5 19660ChCoalEgy 7.06 -.09 10.22 6.62 - 10.8 8240ChConstBk 4.34 -.04 4.95 3.82 5.4 5.8 24353China Life 18.56 -.19 20.36 15.88 1.2 58 4970ChinaUncm 3.31 -.02 5.39 3.15 1 38.8 31184ChMinsheng 6.89 -.12 7.07 5.39 6.5 5.4 222425ChMrchBk 10.87 -.18 13.10 9.54 3.9 5.7 55584ChPacIns 18.82 -.08 23.80 16.15 - 36.5 14446ChShBldIn 4.14 -.01 6.86 3.91 - 15.6 21204ChShenEgy 22.55 -.14 28.65 20.93 - 9.5 8536ChStCnsEng 3.36 +.01 3.46 2.85 2.4 7.1 94561ChYgtzPwr 6.57 -.01 7.14 6.13 3.9 10.8 11021Citic Sec 10.74 -.08 13.99 9.04 4 9.3 35771Daqin Rail 6.32 -.01 7.82 5.82 6.2 8.1 38719InCBkChina 3.95 -.05 4.48 3.60 5.1 6.1 51764IndstrlBk @ 13.93 -.23 14.68 11.59 2.7 4.5 56707Moutai @ 205.70 -6.16 266.08 170.90 1.9 16.9 6200Ping An 38.86 -1.02 46.85 33.35 1 14.7 23371Saic Motor @ 14.88 -.1 16.68 11.17 2 7.9 15749ShangPort 2.51 -.02 3.13 2.37 4.7 12.7 3341ShngPdgBk @ 8.29 -.11 9.75 7.10 3.6 4.6 124095ShznVanke 9.32 +.08 9.95 7.05 1.4 9.2 68234Sinopec 6.28 -.05 7.93 5.75 4.8 10.6 22345WulianYnb @ 24.96 -.95 39.55 23.31 2 10.4 45748

CZECH REP (Dec 13/Koruna)Cez @ 646 - 845.90 616 7 7.1 311KomercBnk 3.93k -51 4.23k 3.05k 4.1 11.2 52TelCzRep 322xd +4 404.28 315.90 12.4 13.2 420

DENMARK (Dec 13/Kr)Carlsberg B 562 -2 579.50 385 1 16.1 179DanskeBk 98.25 -.45 113.40 69.75 - 25.4 1129MoellerMA 39.28k -60 46.2k 32.6k 2.5 - 2MoellerMB @ 41.72k - 48.16k 34.24k 2.4 10.4 5NovoB @ 926 -7 980.50 626 1.5 24.8 352Novozym 160.10 -2.3 180 144.40 0.7 23.6 300TDC 40.15 -.21 47.23 36.90 11.5 8.8 1072VestaWind 30.50 +.27 75 23.25 - - 853WilDemant 483.70 -7.3 596.50 441.60 - 22.6 45

DUBAI (Dec 13/US$)DP World 11.49 -.01 13 9.46 2.1 42.6 92

FINLAND (Dec 13/Euro)Fortum @ 14.39 +.08 19.36 12.81 6.9 10.4 1407Kone Corp 57.45 -1 60 36.91 2.4 21.9 337Metso 30.45 -.13 37.27 24.88 5.6 10.8 822Neste Oil 9.61 -.07 11.23 7.11 3.6 21.4 937Nokia 2.90 -.04 4.46 1.33 6.9 - 29148OtkmpA 0.74 2.15 0.63 - - 2687SampoA 24.55 +.01 25.04 17.91 4.9 10.7 616StorEnsR 5.32 -.06 5.95 4.08 5.6 13.3 2310UPMKym 9.01 -.08 10.98 7.68 6.7 13.9 1594Wartsila 32.63 -.09 33.11 20.71 2.8 21.2 414

FRANCE (Dec 13/Euro)Accor 26.06 -.05 27.76 16.68 2.5 - 792ADP 61.50 -.2 67.29 51.09 2.9 19.3 48AirFrn-KLM 7.19 +.01 7.60 3.01 - - 2453AirLiquide @ 95.54 +.12 100 80.29 2.4 18.9 532Alcatel 0.85 1.97 0.71 - 2.2 18347Alstom 29.99 -.22 32.90 21.86 2.7 11.4 855AXA @ 13.09 +.02 13.25 8.65 5.3 11.7 6582BNP Parib @ 43.22 +.06 44.32 24.54 2.8 7.9 3042Bouygues 21.43 +.14 25.74 17.54 7.5 8 2324CapGemini 33.50 -.47 34.50 23.67 3 12.3 1051Carrefour 19.21 -.2 19.66 12.87 2.7 21.4 4735Casino 70.74 +.1 75.94 60.01 2.1 14.5 159ChristianD @ 126.35 -1.9 129.55 86.40 2.2 17.7 89CNP 11.59 +.03 12.90 7.52 6.6 8.4 325CredAgric 6 +.09 6.56 2.84 - - 7868Danone @ 50.74 +.38 54.96 45.61 2.7 18.1 2451DassaultSy 85.56 -.21 87.75 57.87 0.8 32.5 144EADS @ 29.24 -.17 31.69 22.02 1.5 15.8 1582EDF @ 13.81xd -.08 19.72 13.39 8.3 7.9 1750Eiff age 33.81 +.71 34.10 15.81 3.5 13.7 275Eramet 107.45 -1.7 139.90 75.95 2.1 34.8 18Essilr @ 77.30 -.3 78.24 51.54 1.1 29.3 521FranceTele @ 8.55 +.02 12.49 7.84 16.1 6.1 7639GDF Suez @ 15.32 -.11 21.85 14.55 9.8 9.5 5283Gecina 86.40 -.9 89.25 54.03 5.1 62.7 36Hermes @ 228.65 -2.25 285.49 206.10 0.9 37.3 21JC Decaux 18.32 -.21 23.48 15.75 2.4 20.3 112Klepierre 29.66 +.16 29.87 18.93 4.9 36.8 134Lafarge 45.57 -.54 47.13 25 1.1 39.8 840Lagardere 24.78 -.09 25.95 17.67 5.2 - 513Legrand 31.30 +.05 31.87 22.60 3 17.2 589L’Oreal @ 104 -1 106.40 76.73 1.9 23.8 497LVMH @ 137.75 -.8 140 103.20 2.1 20 600Michelin 72.26 +.08 72.58 42.31 2.9 7.6 574Natlxis 2.54 -.01 3.07 1.76 3.9 9.2 4333

PernodRic @ 88.48 +.28 91.11 66.50 1.8 20.3 362Peugeot 5.20 -.22 15.18 4.32 - - 6991PPR @ 142 +.8 144.50 104.60 2.5 17.7 249Publicis 44.96 +.14 45.75 33.09 1.6 13.9 480Renault 40.22 +.59 43.83 25.01 2.9 6.8 2563Safran 32.70 +.23 32.75 21.21 1.9 - 816Sanofi @ 71.75 -.02 72.25 51.81 3.7 15.8 1907Schneider @ 54.15 -.1 54.80 37.01 3.1 15.3 1075SocGen @ 29.13 -.4 29.85 14.88 - 16.2 4408Sodexo 64.17 +.26 64.85 51.72 2.5 18.5 194StGobn @ 31.69 -.02 37.63 23.90 3.9 16.3 2059STMicro 5.24 -.01 6.46 3.64 5.8 - 3658SuezEnvir 9.11 +.08 12.23 7.81 7.1 31.8 1112Technip 85.61 -1.44 92.36 65.26 1.8 17.2 453Thales 27.36xd -.06 28.91 21.61 2.9 10.8 195Total @ 39.72 +.06 42.97 33.42 5.8 8.4 4082UnibailR @ 178.50 -1.3 183 126.40 4.5 13.6 382Vallourec 40.25 -.4 58.24 25.69 3.2 18.3 446VeoliaEnv 9.06 +.23 13.06 7.38 7.7 - 4053Vinci @ 35.35 -.06 40.85 31.12 5 10.2 1571Vivendi @ 17.12 +.05 17.17 12.01 5.7 14.4 3506

GERMANY (Dec 13/Euro)Adidas 67.68 -1.44 69.26 47.11 1.5 17.4 1038Allianz @ 104.05 +.1 104.75 68.50 4.3 10.6 1852AxelSprg 32.72 -.05 39.87 30.92 5.2 15.4 173BASF @ 71.81 +.26 71.93 50.42 3.5 13.1 3182Bayer @ 72.44 +.19 73.09 44.30 2.3 24.2 2023Beiersdorf @ 61.42 -1.08 62.60 41.90 1.1 51.2 464BMW @ 70.79 -.19 73.95 49.42 3.2 9.7 1776Celesio 12.97 -.22 15.85 10.72 1.9 - 531Commerzbk 1.42 2.21 1.12 - 8.3 33147Daimler @ 39.67 -.19 48.95 31.10 5.5 7.6 4623Deut Bank @ 33.35 -.93 39.51 22.11 2.2 10.6 10997Deut Brse 45 +.13 52.10 36.25 7.3 13.2 769Deut Tlkm @ 8.57 +.01 10.06 7.69 8.2 - 12348DeutPstbk 32.10 +.2 32.45 21.84 - 16.2 15DeutsPost @ 16.46 +.02 16.69 10.64 4.3 40.1 3113E.ON @ 14.19 -.09 19.74 13.61 7.8 - 10417Fielmann 74.04 -.47 80.85 65.20 3.4 25.3 10FraPort 45 -.16 49.84 37.06 2.8 15.8 123Fresenius @ 87.94 -.62 96.93 68.48 1.1 16.8 337FresMedC @ 53.45 -.13 60.27 49.97 1.3 39 737GEA Grp 24.95 -.11 26.83 19.40 2.2 14.8 276Hann.Rck 57.95 +.1 58.19 35.86 3.6 7.8 151HeidCmnt 43.13 -.18 46.68 29.24 0.8 25.2 561Henkel 61.20 -.8 65.16 42.79 1.3 21.3 1121Hochtief 43.47 +.89 55.68 34.64 - - 207Infi neon 5.79 +.02 7.99 4.87 2.1 14.5 7473K & S 35.06 +.06 41.50 30.14 3.7 13.7 1052LANXESS 67.52 -.78 68.90 35.73 1.3 12 354Linde @ 133.50 -1.25 136.90 106.85 1.9 19 544Lufthansa 13.78 +.09 13.91 7.88 1.8 37.2 3150MAN 81.77 -.28 103 59.86 2.8 - 102Merck KG 103.05 -1.1 106.55 71.95 1.5 52 178Metro 21.34 -.15 32.15 19.52 6.3 18.2 1237MTU Aero 67.83 +.05 69.44 46.10 1.8 16.9 116MuenchRkv @ 135.50 +.75 135.75 89.40 4.6 7.2 829Porsche 57.40 -.72 58.70 37.69 1.3 17.6 310Puma 221.25 -.95 277.05 209.05 0.9 22.7 15RWE @ 31.04 -.85 37.12 25.67 6.4 8.2 4512Salzgitter 38.35 +.35 48.95 27.03 1.2 29.5 292SAP @ 60.48 -.8 61.94 39.47 1.2 24.7 3332Siemens @ 82.19 -.03 82.78 62.13 3.7 16.1 2343SMA Solar 18.55 -.01 55.75 15.61 7 5.3 58Suedzucker 30.56 +.07 31.10 21.43 2.3 9.2 262ThyssenKr 17.64 -.19 23.29 11.45 - - 5658Volkswgn @ 160.25 -.25 160.50 101.75 1.9 3.1 64WackerChm 48.20 -.41 92.60 40.48 4.6 56 293

GREECE (Dec 13/Euro)Alpha Bk 1.54 -.1 2.42 0.42 - - 3354BkPiraeus 0.37 -.01 0.81 0.19 - - 7310Coca Cola 16.65 -.3 18.24 10.99 2 26.9 318EFGEbk 0.66 -.04 1.48 0.29 - - 1488HelPetro 6.93 +.03 7.50 3.94 6.5 31.5 111HelTel 4.75 +.05 4.81 1.09 - 5.3 2253NatBkG 1.35 -.02 3.13 0.90 - - 4301OPAP 5.36 -.16 7.90 3.50 13.4 3.4 1491PublPwrC 5.35 -.13 5.70 1.13 - - 419TitanCem 13.40 -.48 16.48 10.07 1.4 - 21

HONG KONG (Dec 13/H.K.$)AgricBkCh @ 3.71 +.01 3.98 2.72 4.4 6.8 266464AIA @ 30.70 -.1 31.90 22.45 1.1 27.3 17885Bk China @ 3.42 - 3.45 2.73 5.6 5.9 314094Bk of EAsia 29.70 -.2 32.50 24.95 3.2 14.4 2197BkofComm @ 5.75 -.04 6.55 4.75 2.2 5 42716BOC HK @ 24 +.15 25 17.46 4.6 12.9 12392CathayPcA 13.72 +.18 16.38 11.76 2.5 30.7 7322ChConstBk @ 6.23 -.02 6.62 4.71 4.7 6.7 214413ChinaLife @ 23.50 -.05 24.70 17 1.2 36.3 23097ChinaMob @ 89 -.35 92.60 72.20 3.8 11.5 13257ChinaRes 27.85 +.2 30.80 18.88 1.7 19.1 2617ChinaTele 4.27 -.03 4.92 3.23 2 18.2 50626ChMerch 24.25 - 29 21 2.8 17.6 3909ChngKong @ 119.90 -1.9 122.40 86 2.6 9.8 3836ChOvLnd&In 23.40 -.45 24.25 9.44 1.6 11.5 17796ChResLand 20.65 -.45 22.25 11.50 1.1 14.3 15951ChResPwr 18.18 -.8 19.18 13 1.7 17.3 11765ChRongshng 1.30 +.01 3.03 0.95 2.1 10.4 32881ChShenEgy @ 32 -.2 36.45 24.15 3.5 10.6 9330ChUncHK @ 12.38 -.14 16.96 9.45 1 47.8 21094Citic Pac 10.66 -.28 15.88 8.64 4.2 4.5 14309CKI Hld 46.35 -.2 49.40 42.25 3.4 12.9 3730CLP @ 64.80xd -2.4 69 62.10 3.9 22.8 44484CNOOC @ 16.80 -.08 18.20 13.18 2.6 9.8 38222EspritAsia 12.26xd -.06 19.78 8.83 3.2 19.7 7719HangLung 29.50 -.4 31 21.50 1.8 21.3 6316HangSeng @ 117.60 -.5 120 91.15 4.4 12.5 1500HendersLd 55 -.65 57.90 35.40 1.9 8.1 3904HKChGas @ 21.25 +.1 21.60 15.60 2.3 26.2 5977HKExch 131 +1.2 148.90 100 3 31.4 8268HSBC 80.25 +.3 80.30 57.05 4.4 14.8 14271Hutchison @ 79.65 +.1 82.40 61.80 2.6 17 5754In&CmBkCh @ 5.47 -.01 5.72 3.97 4.6 6.8 264768

Telmex L 9.60 - 10.46 9.50 7.2 - TlvCPO 65.56 +.67 65.56 48.50 0.5 23.6 1505Walmex @ 42.40 -.01 45.15 34.12 1 34.1 11954

NETHERLANDS (Dec 13/Euro)Aegon 4.67 +.05 4.68 2.85 - 9 9245Ahold 10.20 +.02 11.07 9.01 3.9 11.5 2229Akzo N 45.46 -.03 49.07 33.39 3.2 - 546ArcelorMit @ 12.66 +.02 17.96 10.60 1.2 - 5103ASML Hld @ 48.32 -.19 49.95 30.79 25.9 11.7 1240Boskalis 32.95 -.33 33.54 23.27 3.6 14.1 640Corio 34.91 +.13 41.22 30.23 7.9 18.9 412DSM 44.75 -.09 45.20 33.55 3.3 21.2 449Fugro 44.59 -.49 57.88 37.65 3.4 11.7 553Heineken @ 50.30 -.21 51.75 33.58 1.7 18.1 1011ING @ 7.23 +.03 7.58 4.44 - 7.5 14889KPN 4.68 +.05 9.35 3.90 14.8 6.4 8762Philips @ 20.07 -.2 20.43 13.57 3.5 43.6 2037PostNL 2.77 +.02 4.83 1.92 18.4 0.3 3482Randstad 26.23 +.14 30.09 20.53 4.8 41 430ReedElsvr 11.04 -.18 11.47 8.10 4.1 14.5 3832Robeco 24.16 -.04 24.80 20.44 2.5 58.9 30RylDShlA 26.31xd -.09 29.18 24.30 5.1 8 3883Unilever @ 29.38 -.12 29.67 24.51 3.2 20.4 3288WoltKluw 15.29 +.41 15.68 11.39 4.4 19.3 2368

NEW ZEALAND (Dec 13/NZ $)AucklndAir 2.62 - 2.72 2.36 4.7 33.2 ContactE 5.09xc -.01 5.49 4.49 7.5 18.9 FletchrBld 8.29 +.01 8.44 5.78 5.5 30.5 Telc.of NZ 2.16 -.04 2.75 1.96 15.3 4

NORWAY (Dec 13/Kroner)AkerSol 113.10 -1.6 117.90 57.20 3.4 12.6 963DNB @ 71 - 75.30 51.25 2.8 8.4 2061NorskHyd 27.45 -.07 34.58 22.97 2.7 - 3478Orkla 47.30 -.57 48.84 39.21 5.3 28.7 1935Roy.Carib. 193.90xd -3.6 202.50 134.50 1.3 16.6 296Seadrill @ 208.70xd +.1 246.90 188.50 9.1 16.4 784Statoil @ 139 -.8 162.80 133.20 4.7 5.4 3014Subsea 7 132.90 -1 147.69 95.63 2.5 9.7 1256Telenor @ 114.70 -.6 117.50 86.90 4.4 49.2 1259YaraIntl 283 +.3 305.50 215.50 2.5 6.8 1042

POLAND (Dec 13/Zloty)BkPekao 161 -2.5 165.90 128.10 3.3 13.7 282BRE Bank 326.90 -1.6 329.20 233 - 11.3 17ING Bank 90 - 92.20 71 - 13.7 26KGHM 189 +.9 190 102.40 15 5 869PGNIG 4.85 +.04 4.94 3.61 - - 6023PKN Orlen 48.79 -.16 49.15 31.44 - 6.4 720PKO Bank 35.96 -.23 37.34 30.10 3.5 11.8 1389PZU 413.70 +.7 414.80 290.10 5.4 10.7 83Telek.Pol 11.97 - 18.08 11.56 8.4 13.6 2069

PORTUGAL (Dec 13/Euro)B.EspSanto 0.85 +.01 1.06 0.43 - - 22241BCPort 0.07 - 0.22 0.06 - - 17238BncoBPI 0.88xr +.02 0.92 0.34 - - 1584BRISA 2.06 -.16 2.79 1.62 15 - 812Cimpor 3.29 -.11 5.70 2.93 5 - 176EDP 2.21 +.05 2.52 1.63 8.4 7.3 6445GalpEnerg 11.75 +.01 13.78 8.33 1 25.7 1500JeronimoM 15.10 -.12 16.07 11.26 1.8 26.6 430PortTlcm 3.87 +.1 4.83 3 8.4 17.1 5470Sonae 0.66 +.01 0.67 0.37 5 14.9 4446

RUSSIA (Dec 13/Rouble)Bank VTB @ 0.05 + 0.07 0.05 1.5 8.2 38265980GazProm @ 139.48 -1.46 200.80 136.50 6.4 3 33172GMK Noril @ 5.36k -21 6k 4.5k 3.7 8.2 293Gzprm neft @ 147.69 +1.24 177.25 119.20 4.9 3.8 162Lukoil @ 2kxd -19.4 2.05k 1.55k 2 5.1 2180MTS 239.15 +.15 257.29 176.40 6.2 25.1 667Novatek @ 344.55 +1.11 442.73 269.66 1.9 8.1 1680NovoSteel 62.80 -.32 79.69 46.59 3.2 15.7 3670Rosneft @ 253.87 +2.2 254.49 184.61 1.4 6.3 5267RusHydro 0.75 -.01 1.21 0.71 1 27.3 626560SbankR @ 93.39 -.47 103.85 75.30 2.2 6.3 68691Severstal 351.70xd -4.4 456.70 330.20 3.5 7.3 1590Surgnfgz @ 27.40 -.13 33.89 24.03 2.2 4.1 22166

SINGAPORE (Dec 13/S$)Capitalnd 3.72 -.03 3.77 2.18 2.2 13.8 8020DBS @ 14.89 +.01 14.99 11.26 3.8 10.7 3083Jard Math @ 62 +1.35 62.90 44.70 2 11.1 312Jard Str @ 36.60 +.99 37.50 26.60 0.6 10 258Keppel 10.94 +.07 11.67 8.95 4 8.3 3952OCBC @ 9.74 -.01 9.77 7.80 3.2 8.7 2306SIA Ltd 10.89 +.02 11.10 10.05 1.5 48.4 627Sing Tech 3.88 +.03 3.88 2.61 4 20.7 1340SingTel @ 3.38 - 3.62 3.02 4.7 13.5 20145UOB @ 19.79 +.05 20.23 15.01 3 5 1216WilmarInt 3.16 -.02 6.05 2.99 1.6 12.9 8476

SOUTH AFRICA (Dec 13/Rand)Absa 159.10 +.07 164.50 132.20 4.4 12.3 1608AngGold 262.80xd -.72 373.55 251.99 1.7 72.4 1021Anglo 259.60 -4.51 350.05 230.76 2.9 - 2441AngloPlat 433.12 +5.43 598.50 358.74 0.5 - 218ArclrMttal 32.63 +.53 70.65 25.17 - - 739Firstrand @ 30.17 -.14 30.99 19.98 3.4 11.7 8051GoldFields 101.27 +1.15 133 95.51 3.9 9.5 1114Harmony 70.03 +.54 108.99 64.10 1.3 14.3 1139Implats 163.39 +3 180.83 123.47 1.2 23.7 2608

Kumba Iron @ 548.04 +.03 599.50 456.75 69502.7 0 203MTN @ 166.85 +.44 172.67 127 4.8 14.1 3263Naspers N @ 550.38 -1.78 577.90 334.50 0.6 40.7 1137NedbankGrp 179.52 +1.58 189.86 140.45 3.8 11.8 904OldMut 24.44 -.19 24.80 14.42 15.1 - 6312SAB Mllr 391xd +.56 403.60 274.28 2.3 - 2162Sanlam 43.19 -.17 43.80 28.20 3 15.7 4194Sasol @ 364.94 -4.47 411.50 333.21 4.8 9.3 1375Stanbank @ 109.52 -.88 120 95.33 4.5 12 6816Telkom 15.96 +.44 29.75 14.91 9.1 - 996Vodacom @ 117.31 -.19 122.49 86.61 26840.6 0 648

SOUTH KOREA prices in ’000s(Dec 13/Won)HyundaiHvy 231.50 +1.5 346.50 193.50 1.7 9.3 396HyundaiMot @ 230.50 +3.5 272.50 197.50 0.8 7.2 933HyundEng 72 +.2 87.50 55.60 0.7 16.1 432HyundMobis @ 301 +6.5 328 258 0.6 8.8 344HyundStl 85.40 -1.1 119 74.80 0.6 8.5 448IndBkKor 11.90 +.15 14.80 10.95 4.9 7.4 1175KB Financial 37.70 +1 45 32.50 1.9 8.2 2639Kia Motors @ 61.80 +.6 84.80 54 1 11.2 2135Korea T&G 83.50 -.4 92.30 70.20 3.8 13.7 567KoreaEP 27.10 +.1 30.25 21.20 - - 2044KoreaExch 7.38 +.15 9.12 6.68 32 6.1 1564KT Corp 38.20 +.15 39.85 27.55 5.2 7.8 1280LG Chem @ 330 +1 434 261.50 1.2 15.4 293LG Corp 65.20 +1 77.70 51.80 1.5 11.4 540LG Display 33 +.3 36.95 19.60 - - 4011LG Elect 73.80 -.2 94.30 55.80 0.3 32.1 1990LotteShop 367.50 +9.5 390 273.50 0.4 11.2 81NHN 239.50 +4.5 292.50 198.50 0.2 20.9 323Posco @ 347 +2 427 304.50 2.7 9.3 350ShinhanFin 38.15 +.9 47.50 33.10 2 7.9 2196Shinsegae 221 +4.5 290 182.50 0.3 12.7 49SK Hynix @ 26.25 +.2 30.95 19.75 - - 7568SK Innov 174.50 +2 195.50 124 1.6 15.3 458SK Telecom 156.50 +1 162.50 120 6 12.9 270SmsungCT 62 +1.4 82.70 54.90 0.8 17.8 1178SmsungEl @ 1.53k +43 1.53k 984 0.4 11.4 608SmsungEM 105.50 +1 112.50 77 0.7 16.7 842SmsungEPf 877 +16 882 614 0.6 - 25SmsungFre 218.50 +5 244.50 195.50 1.7 12.9 169SmsungSDI 154 +2.5 171.50 127 1 4.5 238WooriFin 11.35 +.2 14 9.11 2.2 5.2 3061

SPAIN (Dec 13/Euro)Abertis 11.99 +.3 12.67 9.33 5.6 7.9 1502Acciona 57.89 +2.11 68.58 29.46 5.4 - 88Acerinox 8.61 +.03 11.26 7.39 6.4 - 514ACS 17.04 -.11 25.10 10.38 11.7 - 608Banesto 3 +.06 4.20 1.90 8.6 - 572Bankinter 3.02 +.01 5.41 2.06 4.7 14.9 1335BanPoplr 0.56 -.01 3.68 0.53 72.1 5.5 68748BBVArg @ 6.75 +.06 7.35 4.31 5.6 23 16742BcoSabdll 2.23 +.03 2.70 1.19 1.9 40.8 4734BcoSantdr @ 5.90 +.04 6.65 3.98 10.8 30.6 29786BcoValen 0.11 0.82 0.08 - - 1366CaixaBnk 2.68 +.02 4.12 2.01 8.6 27.3 3396CorFinAlba 34.50 +.5 35.55 22.10 2.9 - 20DIA 4.73 -.05 4.98 3.14 2.3 19.1 2794EbroFood 14.30 +.05 15.24 12.07 3.1 13.4 332Enagas 16.39 +.16 16.75 12.51 6.3 10.4 2068Endesa 17.28 -.23 17.75 11.30 3.5 9.6 249FCC 9.46 -.09 20.60 7.10 13.7 16.1 259GAMESA 1.64 +.01 3.37 1.01 0.4 - 2683GasNatur 13.05 +.1 13.75 8.36 5.8 9.8 1462Grifols 24.65 -.06 26.66 11.56 - 47 537GrpFerrov 10.46 -.79 11.69 7.41 12 6 3319IAG 2.14 -.01 2.29 1.68 - 19.1 673Iberdrola @ 3.97 +.04 5.02 2.63 0.8 8.1 13770Inditex @ 103.20 -.65 107.35 60.83 1.6 29.8 622IndraSis 9.41 +.27 11.19 6.08 7.2 11.8 469Mapfre 2.30 +.05 2.65 1.29 5.2 8.2 7392MedsetEsp 5.20 +.07 5.20 3.23 2.7 33 1450OHL 20.74 +.54 24.15 14 2.7 7.7 275RedElectCp 36.82 +.03 39.75 29 6 10.6 420Repsol @ 16.06 +.07 24.23 10.90 6.7 10.7 3489TechReun 35.20 -.01 39.31 24.90 3.8 14.7 167Telefonica @ 10.19 +.07 13.85 7.90 7.4 7.5 14341ZardoyaO 11 +.22 11 8.09 4.2 21.5 131

SWEDEN (Dec 13/Kroner)AlfaLaval 133.40 -1.1 147 110.40 2.4 17.4 1479AssaAbloy 238.60 -2.4 242 157.50 1.9 22.9 1170AstraZen 317.50 -8.8 329.80 285 6.7 9.8 1415AtlasCpcoA @ 173.20 -2.6 179.40 134.40 2.9 15.1 3441ElctxB 173.60 -1.4 178.10 103 3.7 19.7 1458EricssonB @ 65.05 +.55 71.90 55.90 3.8 15.6 10695H & M @ 215.60 -1.1 257.30 206.50 4.4 20.9 2627IndVardenA 101.80 -2 109.20 79.55 4.4 3.1 241InvestorB 164.10 -1.7 166 121.40 3.7 4.9 2532Kinnevik 132.80 -1.4 155.20 120.30 4.1 9.2 659NordeaBk @ 61 -.45 66.95 49.46 3.7 9.5 8101Sandvik 99.75 -2.05 108 77.40 3.3 15.2 5461ScaniaA 130.60 -3.2 140 93 3.8 - 18ScaniaB 134.70 -2.6 142.20 93.80 3.7 15.6 1458SEB @ 55 -.6 57.95 37.75 3.2 11.1 5722SkanskaB 108 -.8 125.90 93.30 5.6 13.9 1316SKF B 158.50 -1.4 174.80 126.20 3.5 14.7 2446SSAB A 55.10 -1.45 76.60 45.10 3.6 - 3906SvenCellB 135.50 -1.9 138.30 95.65 3.1 - 2010SvenskaHn @ 233.80 -2.4 249.90 174.10 4.2 11.2 1578Swedbank @ 123.20 -1 127.30 83.95 4.3 13.4 3118SwedMatch 225.80 -1.2 294.50 214.60 2.9 16.3 765Tele2B 118.60 -1.2 130.39 102.30 11 13.1 1971TeliaSonra @ 44.47 -.4 49.65 41.03 6.4 10.7 8658VolvoA 91.75 -4.15 100.50 69.65 3.3 - 999VolvoB @ 91.85 -4.1 100.40 69.40 3.3 12.4 37505

SWITZERLAND (Dec 13/Frs)ABB Ltd @ 18.75 +.01 20.20 14.45 3.5 15.6 4695Actelion 46.33 -.41 48.72 30.27 1.7 18.1 434Adecco 47.10 +.27 49.52 36.13 3.8 15.4 555Baloise 80.10 +.2 80.65 58.30 5.6 49.1 152

CredSuisse @ 22.88 -.11 27.53 15.97 3.3 - 6216GAM Hldgs 12.30 +.15 13.80 9.80 4.1 - 510Givaudan 959.50 -.5 970 830 2.3 26.4 19Holcim @ 65.55 -.25 66.15 48.60 1.5 63.6 457JulBaerGp 32.63xr -.17 38.33 29.34 3 23 363Kuhn&Nag 109.70 -.7 125 93.10 3.5 26.2 185Logitech 7.15 +.07 9.90 5.83 11 14.9 803Lonza Grp 48.37 -.75 62.30 32.81 4.4 16.7 271Nestle @ 60.80 -.2 62.30 51.05 3.2 19.6 4189NobelBiocr 7.78 -.12 13.56 7.09 1.9 16.6 429Novartis @ 58.50 -.25 59.45 48.29 3.8 17.6 2366Pargesa 63.70 - 68.80 51.05 4 9.1 52Richemont @ 71.45 -1.05 74.85 44.68 0.8 17.2 1532Roche @ 185.90 -1.3 190.80 148.40 3.7 19 1028Roche Br 189 -1.2 193.80 156.10 3.6 - 9Schindler 127 -2.1 129.90 104.10 1.6 26.9 24SchndlerPC 129.60 -1.4 131.50 102.60 1.5 - 75SGS SA 2.07k -15 2.16k 1.48k 3.1 29.6 11Sonova 103.70 -2.6 107.40 83.30 1.2 23.6 102SwatchGpI @ 447.60 -8.9 463.70 319.10 1.3 - 172SwatchGpN 76.80 -1.6 79.90 56.90 1.5 - 102Swiss Re @ 66.20 -.35 68.10 45.80 4.5 6.1 631Swisscom @ 395 -.4 397.70 334.40 5.6 37.8 52SwissLife 123.10 -.8 131 74.35 7.3 7 104Syngent @ 370.40 -3.1 377.90 255.20 2.2 21.5 183Transocean 42.01 -.72 54.30 36.02 5.2 - 340UBS @ 15.08 -.16 15.29 9.69 0.7 - 11423ZurichFin @ 238.90 -1.1 246.80 192.50 7.1 11.5 277

TAIWAN (Dec 13/T$)Acer 25.45 +.25 46.15 22.30 - - 20Au Optrncs 13.95 +.9 18 8.19 - - 302CathayFin 31.55 +.15 35.24 26.48 1.5 27.2 21ChimeiInn 15.55xr +1 17.43 8.45 - - 143ChinaSteel 26.45xa +.15 30.44 24 3.8 - 32Chinatst Fin 17.75 +.15 19.12 14.20 2.1 11.8 34ChnghwTl @ 94.40 -.4 102 87.50 5.8 17.9 8CompalElc 20 +.2 35.80 17.30 7 12.1 36DeltaElc 108 +1 114.50 63.20 3.2 17.5 6FormoC&F 70.50 +.9 93.70 58.70 5.7 - 6FormPlastic 78.80 +.8 93.90 67.40 5.1 38.3 7FubonFnH 33.95 +.25 34.43 26.29 2.8 14.8 18HonHaiPrc @ 96 +.4 106.36 70.27 1.4 12.2 35HTC 285 +2.5 672 191 14 8.9 24MediaTek 339.50 -1 351 235 2.7 29.1 24Mega Fin 23xc +.1 24.14 17.34 3.6 12.4 25NanYaPlast 56.30 +2.6 72.80 46 3.7 - 13Quanta Cmp 68.50 +1.9 86.40 57.10 5.8 10.9 22TaiwanMob 106 - 115.50 86.30 5.9 19.7 4TaiwanPet @ 88.50 +.3 97 77.50 2.3 - 2TaiwanSem @ 99.20 +.8 99.40 72 3 16.5 46Utd Micro 12 +.45 15.75 10 4.2 19.7 116

THAILAND (Dec 13/Baht)Adv Info @ 213 -4 227 138 4.8 21 3596400Bangkk Bk 191.50 -.5 203 146 3.1 11.9 5895500PTT @ 329 -2 369 300 3.3 9.5 4002200PTT Exp 156.50 -1 187 147.50 3.6 8.9 6084500SiamCem 426 +8 426 310 2.7 25.7 2817800SiamComBk @ 175.50 +1.5 178 109 2 16 7160700

TURKEY (Dec 13/Tk Lira)Akbank 8.84 -.1 9.02 5.28 1.2 14.3 19325KOC Hold. 8.96 -.04 9.10 5.33 1.3 10.4 3088Sabanci 9.92 -.18 10.30 5.24 1 13.2 3114TGaBan @ 9.14 +.04 9.22 5.44 1.6 11 29165Trk.Isbank 6.06 -.08 6.24 3.14 2 8.5 42244TrkHalkBk 17.85 +.05 17.95 9.20 97.8 9.4 8520Turkcell 11.20 - 11.70 8.04 - 12.6 4912TurkTelek 6.82 -.06 8.38 6.24 7.9 9.1 6160YapiKred 5.16 -.1 5.32 2.48 - 10.7 13518

Li & Fung 13.32 +.12 20.15 11.46 3.7 18.4 27202MTR @ 30.65 -.25 31.35 24.30 2.5 14.2 2026NewWorld 12.14xd -.12 13.20 6.13 0.2 6.3 12754PetroChina @ 10.76 -.04 11.92 8.85 3.7 13.5 56564PowerAst @ 65.85 -.9 69.20 52.55 3.5 15 7288SHK Props @ 116.30xd -.5 122 85.30 2.9 7 4374Sino Land 14.02 -.1 14.94 9.88 3.3 8.3 5064Sinopec @ 8.74 +.01 9.67 6.38 4.3 11.2 57810Swire Pacifi c @ 93.85 -.45 97.25 70.39 3.6 8.5 1237SwirePac B 17.76 -.04 18.50 13.56 3.8 4.1 893Tencent @ 252.80 -.2 281 142.50 0.3 31.6 2933WharfHld @ 59.85 +.2 61.50 33.25 1.9 4.5 2707Wheelock 38.70 -.05 39.85 17.87 1.8 3 684

INDIA (Dec 13/Rupee)BharatHvy 228.05 -4.3 328.35 195.05 2.8 7.9 431BhrtiAirtel @ 316.75 +4.8 400.90 238.50 0.3 34.3 341CairnInd 320 +2.3 400.95 290.25 1.6 5.8 492CoalIndia 354.15 -2.05 386 293.75 0.1 14.3 74GAIL 347.85 -.5 401 303.10 2.5 11.9 48HDFC Bk @ 691.40 -1.95 705 400.45 0.6 27.7 175HsngDevFin @ 854.20 -5.7 882 600.85 1.3 21.3 36ICICI Bk @ 1.12k +8.9 1.15k 641 1.5 15.3 217IndianOil 260.10 -.5 291.75 239 1.9 27.2 20Infosys @ 2.28k -15.9 2.98k 2.1k 2.1 14 71ITC @ 295 -10.85 306.50 192.25 0.8 36.3 883JindalS&P 420.10 +7.25 663.40 321.10 0.4 11.4 190Larsen&T @ 1.63k -22.2 1.72k 971 1 20.2 146M M T C 658.85 -6.95 1.01k 438.55 0 - 18NatlThmPr 150.60 -2.6 190.30 138.95 2.7 12 407NMDC 157.15 +2.9 206.35 136.15 3.5 8.8 5464OilNatGas @ 260.25 +.55 303.90 240.10 3.7 9.1 132RelianceIn @ 832.90 +.75 881 671 0.7 14.6 480SBI NewA @ 2.26k -32.95 2.47k 1.58k 1.5 7.8 326SteelAuthr 81.05 -.9 115.90 73 2.5 9.7 95Sterlite 109.30 -3.7 138.40 86.10 1.9 7.2 422TAMO 287.40 +10.95 320.60 167.75 1.4 6.5 2918TataCnslty @ 1.22k -3.1 1.44k 1.04k 2 19.5 69TataSteel 388.20 -7.05 500.90 332.35 3.1 - 416Wipro @ 373.55 -1.2 452.50 325.60 1.6 14.9 47

INDONESIA prices in ’000s(Dec 13/Rupiah)AdaroEgy 1.60 +.14 2.03 1.18 4.9 10.2 190137Astra Int @ 7.45 - 8.30 6.12 2.7 15.9 33044Bk Negara 3.58 -.03 4.23 3.33 1.7 37.7 9554BkCentAsia @ 9.45xd - 9.50 6.75 1.2 20.1 9572BkMandiri @ 8 -.1 8.90 6 1.3 13.1 34706BkRakyat @ 7.20 - 7.85 5.15 1.7 9.8 13669Gudang Grm 57.90 -.25 63.80 45.90 1.7 27.1 1753Telkom @ 9.15 -.1 9.95 6.60 4.1 14 19811Unilever @ 20.35xd -2.8 28.50 17.10 2.9 32.4 38787

IRELAND (Dec 13/Euro)Aer Lingus 1.07 - 1.18 0.63 2.8 8.9 310BkofIrelnd 0.12 0.16 0.07 - 5.9 47175CRH 14.46 - 16.93 12.81 4.3 17.6 1223Elan Crp 7.79 -.13 12.01 7.50 - - 780GraftonGrp 3.64 -.04 3.83 2.28 2.1 - 345Ind News 0.04 - 0.35 0.01 - - 800Irish Lf 0.02 0.08 0.02 - - 2494Kerry Gp 40.80 +.03 41.76 27.07 0.8 22.2 169Ryanair 4.80 -.02 4.95 3.38 7.1 11.2 1400

ITALY (Dec 13/Euro)A2A 0.42 +.01 0.80 0.29 3.1 - 39362Acea 4.29 -.03 5.45 3.61 6.5 11.6 70Atlantia 13.02 +.1 13.23 9.03 5.6 10.6 1195Autogrill 8.26 +.08 8.55 5.99 3.4 20.2 3011BcaCarige 0.73 +.02 1.58 0.50 9.6 7.4 1457BcaMilano 0.42 +.02 0.54 0.25 7.7 - 112538BcaPEmilR 4.91 +.21 6.65 2.80 0.6 7.6 3095BcoPoplre 1.15 +.03 1.70 0.79 - - 14862BcPSondrio 4.22 +.02 6.85 3.76 2.1 7.7 293BuzziUnicm 9.59 +.01 9.81 6.26 0.5 43.1 690Campari 5.66 +.01 6.55 5 1.2 24.3 1594CredEmil 3.72 +.04 4.22 2.30 2.7 12.2 339ENEL @ 3.06 +.05 3.33 2.02 8.5 8.3 45843ENI @ 18.10 -.01 18.72 14.93 5.9 8.6 10029ERG 6.45 +.03 9.26 4.28 6.2 6.2 284Exor 18.85 +.13 21.50 14.01 1.8 13.3 199Fiat 3.70 +.1 4.93 3.25 - 15.6 23968Fiat Ind 8.18 -.02 8.85 5.83 2.3 13.1 2598Finmecnca 4.14 +.08 4.46 2.56 - - 6081Generali @ 13.20 +.11 13.66 8.16 1.5 17.5 6412IntSanPSvg 1.04 +.01 1.39 0.68 - 4.9 6466IntSPaolo @ 1.27 +.01 1.65 0.85 - - 153215Italcementi 4.17 +.56 6.10 3.08 2.9 - 2022Lottomatica 17.45 +.02 18.35 10.66 4.1 13.9 721Luxottca 30.88 -.23 32.40 20.31 1.6 27 677Meddiolan. 3.66 +.02 3.94 2.18 3.8 9 2331Mediaset 1.50 +.02 2.58 1.14 6.7 - 51139Mediobnca 4.25 +.09 5.14 2.34 1.2 26.9 6307MontePsS 0.20 + 0.44 0.14 10.2 - 112740Parmalat 1.76 +.02 1.86 1.27 5.7 14.5 1040Pirelli&C 8.80 +.03 9.83 6.21 3.1 8.3 1332Prysmian 14.28 +.05 15.48 9.35 1.5 18.2 574Saipem @ 29.59 -.33 40.12 28.01 2.4 13.2 2489Saras 0.96 -.02 1.26 0.66 - - 2946Snam 3.44 +.01 3.74 3.07 7 15.4 8140TelcmItalR 0.63 + 0.76 0.51 8.6 7.9 14784TelecmItal @ 0.71 + 0.93 0.60 6 - 43089TERNA 2.97 +.02 3.06 2.48 6.7 12.4 8900TODS 94.70 -.3 96.50 60.45 2.6 20.1 71UBI Banca 3.17 +.14 4.12 1.82 1.6 - 8075UniCred @ 3.56 +.01 5.31 2.20 5.6 11.9 85471

JAPAN prices in ’000s(Dec 13/Yen)Aeon 0.95 -.01 1.11 0.84 1.3 11.2 2764Ajinomoto 1.15 -.02 1.24 0.90 1.4 16.8 3103AozoraBk 0.25 - 0.26 0.15 3.6 10.2 7024Asahi Glass 0.64 +.01 0.76 0.42 4.1 15.2 6024AstellasPh @ 3.99 -.04 4.21 3 3.3 19.1 2011

Bridgestne @ 2.06 +.03 2.09 1.60 1.4 9.7 2797Canon @ 3.14 +.07 4.02 2.31 3.8 17.9 7832ChubuElec 1.06 - 1.58 0.80 5.2 - 2172Chugai Ph 1.64 -.01 1.72 1.18 2.4 21.4 995CntJpRwy @ 6.67xa -.06 7.14 6.10 1.5 7.1 331DaikinInd 2.64 +.01 2.74 1.84 1.4 34.9 2697DaiNpPrnt 0.63 +.01 0.87 0.50 5.1 36.5 2515DaiSankyo 1.30 + 1.58 1.17 4.6 18.4 1531DaiwaSec 0.41 +.02 0.41 0.24 1.5 47.3 17350Denso @ 2.77 +.05 2.85 2.02 1.8 17.7 2322EastJpRwy @ 5.46 -.02 5.62 4.48 2.1 12.3 1166Eisai 3.50 +.02 3.71 3.05 4.3 17.6 859Fanuc @ 15 +.66 15.63 11.24 1.3 27.2 1732FastRetail @ 20.20 +.41 20.26 12.72 1.3 26 867FujiFilmH 1.67 +.07 2.10 1.24 2.3 20.7 6068Fujtsu 0.31 +.01 0.45 0.27 3.3 25.4 27275Hitachi @ 0.48 +.01 0.56 0.40 2.1 11.3 30371Honda Mt @ 2.82 +.08 3.30 2.24 2.4 13.6 9202Hoya 1.62 +.01 1.94 1.52 4 11.7 2783Inpex @ 445.50 +2.5 611 418.50 1.7 8.9 10Itochu 0.84 + 0.97 0.75 5.7 4.7 5818JapanTob @ 2.39xa +.01 2.58 1.79 2.5 14.8 2609JFE 1.36 +.02 1.88 0.94 0.7 23.9 4658JX Hldgs 0.45 - 0.54 0.35 3.5 8.1 6385KansaiEP 0.76 +.01 1.45 0.48 - - 6329Kao Corp 2.27 -.03 2.39 1.95 2.7 19.9 2210KDDI Cp @ 5.88xa +.04 6.40 4.74 2.9 14.3 1243Keyence 23.25 -.1 24 16.44 0.2 27.8 180KirinHldgs 1.01 -.01 1.09 0.86 2.7 20.5 2552Komatsu @ 1.92 +.03 2.51 1.44 2.3 12 7829Kubota 0.90 +.01 0.91 0.61 1.8 17.7 4045Kyocera 7.76 +.15 8.03 6 1.5 20.7 1201Kyushu EP 0.79 -.01 1.27 0.45 2.5 - 3220Marubeni 0.57 +.01 0.65 0.45 3.9 4.9 13232MitsubElec 0.70 +.02 0.79 0.56 1.6 12.5 9369MitsubEst @ 1.72 +.05 1.73 1.12 0.7 47.7 7978MitsubHvy 0.38 +.01 0.41 0.29 1.6 23.3 15010Mitsubishi @ 1.57 +.01 2.04 1.33 3.7 7.4 6587MitsubTk @ 0.38 + 0.45 0.32 3.1 8.1 74677Mitsui @ 1.17 1.44 1.04 4.3 6.9 6652MitsuiFud @ 1.83 +.04 1.85 1.09 1.2 28.9 4823MitsuiSmIns 1.42 +.01 1.81 1.14 3.8 75 1691Mizuho @ 0.14 + 0.15 0.10 4.4 6.5 200153Murata Mfg 4.88 +.14 5.13 3.61 2 33.3 40NEC 0.16 +.01 0.18 0.10 - 20.5 33897Nintendo @ 9.07 +.13 13.08 8.06 1.1 - 34NipStlSuMet 0.18 0.25 0.14 0.5 - 62613Nissan Mt @ 0.79 +.02 0.91 0.64 2.9 11.1 14421Nitto Denko 4.33 +.08 4.39 2.65 2.3 16.7 1548NKSJ 1.64 +.05 2.05 1.39 4.9 - 1853Nomura 0.36 +.01 0.42 0.23 1.1 27.8 62462NTT @ 3.62 -.06 4.02 3.27 4.1 9 4172NTT Data 248.10 +4.8 294.20 213.30 2.4 18.3 8NTTDCMo @ 121.20 -.1 144.40 111.90 4.8 10.4 60Orix 8.80 +.17 8.86 6.22 1 8.8 983Panasonic 0.48 +.04 0.78 0.38 1 - 100717Resona 0.35 + 0.42 0.28 3.4 3.8 18667Ricoh 0.81 +.04 0.85 0.49 2.6 18.3 12847Rohm 2.52 +.09 4.24 2.16 1.8 - 23Secom 4.23 - 4.28 3.33 2.1 15.5 849SekisuiHse 0.81 + 0.83 0.64 2.7 12.5 3319Seven & I @ 2.42 -.02 2.66 2.08 2.6 15 2459Sharp 0.25 +.02 0.74 0.14 2 - 240209ShnEtsuCh @ 4.97 +.09 4.98 3.63 2 20.4 1439SMC Cp 14.97 +.29 15.06 11.61 0.9 19.9 204Softbank @ 3.02xd +.02 3.34 2.05 2 10.3 4780Sony 0.89 +.05 1.83 0.77 2.8 44.7 37016SonyFinH 1.41 -.01 1.55 1.08 1.4 16.6 1149SumitChm 0.26 +.01 0.37 0.19 3.5 56.7 17899SumitoEle 0.94 +.02 1.17 0.78 2.1 16.6 3994SumitomMI 0.12 - 0.18 0.10 1.7 - Sumitomo 1.03 +.01 1.28 0.98 5 5.1 6130SumitomoF @ 2.77 +.07 2.93 2.11 3.6 7.3 11220Suzuki Mt 1.99 +.01 2.07 1.33 0.8 15.5 2495T&D Hld 0.89 +.02 1.06 0.70 2.5 16.9 2298Takeda Ph @ 3.81 -.03 3.87 3.16 4.7 19.4 2672TDK 3.33 +.18 4.84 2.72 2.4 21.5 3754Terumo 3.52 +.11 4.06 2.76 1.3 20 781Tohoku EP 0.75 -.01 1.01 0.45 - - 2383TokioElPw 0.14 - 0.26 0.12 - - 10327TokioMrne @ 2.13 +.04 2.35 1.65 2.5 18.2 3333Tokyo Elcn 3.80 +.09 4.94 3.16 1.4 - 1911TokyoGas 0.40 0.44 0.34 2.3 10.4 10904Toshiba 0.29 +.01 0.38 0.23 2.8 11.2 42218Toyota @ 3.60 +.04 3.66 2.47 1.7 - 9578Toyota Ind 2.46 +.03 2.61 1.97 2 15.7 878WstJpnRwy 3.32 -.04 3.53 3.04 3.2 11.7 575Yahoo Jpn @ 27.95 -.18 30.45 21.65 1.2 15.1 97YokohaBk 0.39 0.42 0.34 2.6 9.4 6202

MALAYSIA (Dec 13/Ringgit)AxiataGp @ 6.53 +.13 6.83 4.65 3.5 22.5 24840CIMB Grp @ 7.57 -.03 7.96 6.81 2 12.8 9671Digi.com 5.03 +.03 5.48 3.54 6 28.9 10981Genting 9.25 +.03 11.32 8.55 0.9 15 2711Genting Mly 3.46 +.07 4.12 3.28 2.5 15 7626IOI Corp. 5 - 5.55 4.82 3.1 15 3225KL Kpng 21.58 +.2 26.76 17 3 18.4 278MalayBnkng @ 9.07 - 9.56 8.11 7.5 12.6 7162Maxis 6.57xd +.02 7.10 5.36 4.9 20.7 4766MISC 4.13 -.06 6.21 3.86 6.1 - 708PetChem 6.13 +.02 7.03 5.63 2.6 - 5544PetGas 18.48 +.06 20.26 13.78 2.2 - 1204PPB Grp 11.70 -.16 17.98 11.68 1.7 18.6 1289Public Bk 15.92 +.02 16.02 12.58 3 14.9 3885Public BkF 15.90 +.02 16 12.58 3 - 2298SimeDarby @ 9.14xd -.06 10.26 8.83 3.8 13.5 4952TelekmMala 5.83 +.03 6.40 4.21 8.5 13.9 9539Tenaga Nsl 6.94 -.01 7.22 5.36 2.2 9 5239YTL Power 1.55 +.01 1.90 1.51 2.4 9.1 3803

MEXICO (Dec 13 / 12:00 am/Peso)AmerMvl @ 15.30 +.12 18.72 14.70 1.3 12.7 42452CemxCPO 11.64 +.06 12.30 6.15 8 - 15355FEMSA UBD @ 124.80 -2.27 131.07 88.42 1.5 32.9 1922GrpElektra 556.20 +9.95 1.46k 407 0.4 - 33GrpMexico @ 44.48 -.56 46.10 34.65 3.7 - 6373Inbursa @ 36.98 +1.08 37.95 23.69 0.9 29.4 1752

Thursday stock close Day’s traded m’s price changeRschMt 47.4 13.92 +0.61Facebook 46.3 28.59 +1.00Intel 21.9 20.55 -0.12Microsoft 20.6 27.05 -0.19Cisco Systems 17.9 19.67 -0.06Apple 11.5 530.34 -8.66Oracle Corp 11.1 31.46 -0.49Dell 8.6 10.53 -0.04Huntington 7.8 6.18 -0.08Yahoo 7.2 19.45 +0.07

BIGGEST MOVERSThursday Close Day’s Day’s price change chng%UpsBest BUY 14.08 1.90 +15.60MBIA 8.67 0.53 +6.51JC Penney 20.54 1.09 +5.60Radioshack 2.22 0.11 +5.21DownsNabors Indust 13.96 -0.57 -3.92Manitowoc 15.17 -0.51 -3.25Newmont Mining 44.04 -1.46 -3.21Phillips 66 51.77 -1.55 -2.92Based on the constituents of the S&P500 and the Nasdaq 100 index

Thursday stock close Day’s traded m’s price changeCentamin 95.9 27.70 -25.00Vodafone 87.8 162.50 +0.95Barclays 73.0 254.10 +1.50LlydsBkg 64.4 46.68 -0.08HSBC 24.0 643.40 -0.40Man 24.0 81.10 +3.50BP 19.0 428.75 -1.30Debenhm 16.4 114.20 +1.40BT 13.0 237.40 +2.50Aviva 11.4 372.80 +5.90

BIGGEST MOVERSThursday Close Day’s Day’s price change chng%UpsSuperGroup 593.50 36.50 +6.55RusPetro 88.30 4.30 +5.12Man 81.10 3.50 +4.51Natl Exp 187.90 7.70 +4.27DownsCentamin 27.70 -25 -47.44SportsDirect 386.20 -23.10 -5.64Dechra 601.50 -34.50 -5.42NewWldRes 263.60 -13.40 -4.84Based on the constituents of the FTSE 350 index

Thursday Turnover close Day’s Euro/m’s price changeDeutsche Bank 366.7 33.35 -0.93Unicredit 303.9 3.56 +0.01BASF 228.5 71.81 +0.26SAP 201.5 60.48 -0.80IntSanPaolo 195.2 1.27 +0.01Allianz SE 192.7 104.05 +0.10Siemens AG 192.6 82.19 -0.03Daimler AG 183.4 39.67 -0.19Eni 181.5 18.10 -0.01BcoSantdr 175.7 5.90 +0.04

BIGGEST MOVERSThursday Close Day’s Day’s price change chng%UpsKBC Group 24.10 +0.66 +2.82Wolt.Kluw. 15.29 +0.41 +2.76PortTlcm 3.87 +0.10 +2.73Fiat 3.70 +0.10 +2.72DownsPeugeot 5.20 -0.22 -4.06Deutsche Bank 33.35 -0.93 -2.71RWE 31.04 -0.85 -2.65Adidas 67.68 -1.44 -2.08Based on the constituents of the FTSEurofi rst 300 Eurozone index

Thursday stock close Day’s traded m’s price changeSharp Corporat 240.2 250 +15Mizuho Fin 200.2 135 +2Panasonic 100.7 481 +35Mazda Motor 83.2 142 +6MUFG 74.7 382 +4Nippon Steel 62.6 184 -2Nomura Hldg 62.5 364 +14Toshiba 42.2 290 +7NSG 40.9 91 +5Sony 37.0 886 +53

BIGGEST MOVERSThursday Close Day’s Day’s price change chng%UpsTokuyama 159 12 +8.16Panasonic 481 35 +7.85Taiyo Yuden 770 53 +7.39Kawasaki Kisen 111 7 +6.73DownsUnitika 41 -2 -4.65SUMCO 713 -27 -3.65Nippon Lt Metal 85 -2 -2.30OSAKA GAS 318 -7 -2.15Based on the constituents of the Nikkei 225 index

Dec 13

3043

899

2005

139

44

27

Best BUYShare Price

Nov 13 2012/2012 Dec 13

CentaminEShare Price

Nov 13 2012/2012 Dec 13

PeugeotShare Price

Nov 13 2012/2012 Dec 13

TokuyamaShare Price

Nov 13 2012/2012 Dec 13

n AMERICAACTIVE STOCKS

n LONDONACTIVE STOCKS

n EURO MARKETSACTIVE STOCKS

n TOKYOACTIVE STOCKS

Dec 12

3116

1460

1549

107

132

27

Dec 11

3108

2030

967

111

136

21

Issues Traded

Rises

Falls

Unchanged

New Highs

New Lows

Changeon day

1.90

Changeon day -25.00

Changeon day -0.22

Market data provided byMarket data provided by

Market data provided byMarket data provided by

Changeon day 12.00

n MAJOR MARKET VOLUMES

5 day Dec 13 Dec 12 average

NYSE 265 693 569NASDAQ 949 1752 1554UK 2946 2571 2487France 150 160 157Germany 161 169 165Japan 2212 1526 1623Volumes are rounded to nearest million.

n MAJOR INDICES-HIGHS & LOWSDec 13 Day’s Day’s Open Close high lowDJ Ind 13241.38 13191.25 13264.41 13191.19Nasdaq Cmp 3007.83 2992.61 3026.51 2990.71S&P 500 1428.48 1420.68 1431.36 1420.68FTSE E300 1138.26 1134.86 1139.42 1133.49FTSE 100 5945.85 5929.61 5947.85 5918.57FTSE All Sh 3108.25 3100.57 3109.24 3095.33CAC 40 3654.22 3643.13 3659.10 3633.35XETRA DAX 7618.62 7581.98 7618.62 7561.96Topix 799.20 799.21 802.79 797.84Nikkei 9681.20 9742.73 9767.05 9672.47Hang Seng 22500.99 22445.58 22563.14 22380.78SMI 6967.56 6919.54 6969.51 6913.68AEX 344.31 343.83 344.90 343.08

n NYSE RISES AND FALLS

%

Cyprus Popular Bank 3.00

ADVERTISED BASE

For further information on any of these rates please contact each bank directly.

LENDING RATES

www.ft.com/ir

DECEMBER 14 2012 Section:Stats Time: 13/12/2012 - 18:22 User: sheehanr Page Name: WSM1 USA, Part,Page,Edition: EUR, 22, 1

FINANCIAL TIMES FRIDAY DECEMBER 14 2012 ★ 23

MARKET DATA

Argentina Merval 2617.41 2610.90

Australia ALL ORDINARIES 4592.94 4591.84 S&P/ASX 200 Res 4240.57 4229.46 S&P/ASX 200 4582.79 4583.81

Austria ATX 2369.80 2357.55

Belgium BEL 20 2442.56 2438.39 BEL Mid 3880.85 3868.61

Brazil Bovespa 59369.33 59474.18

Canada S&P/TSX Met & Min 963.93 972.29 S&P/TSX 60 704.14 708.17 S&P/TSX Comp 12282.98 12353.09

Chile IGPA Gen 20670.12 20722.94

China Shanghai A 2158.57 2180.92 Shanghai B 223.14 223.38 Shanghai Comp 2061.48 2082.73 Shenzhen A 818.34 828.26 Shenzhen B 624.67 627.49 FTSE A200 6222.01 6291.84 FTSE B35 7855.78 7884.21

Colombia CSE Index 14539.07 14629.52

Croatia CROBEX 1723.93 1727.19

Cyprus CSE M&P Gen 122.56 122.75

Czech Republic PX 1002.18 1001.59

Denmark OMXC Copenhagen 20 497.77 500.84

Egypt EGX 30 5162.94 5158.38

Estonia OMX Tallinn 726.20 701.40

Finland OMX Helsinki General 5814.06 5838.57

France CAC 40 3643.13 3646.66 SBF 120 2797.92 2801.14

Germany M-DAX 11923.99 11952.12 XETRA Dax 7581.98 7614.79 TecDAX 833.28 835.78

Greece Athens Gen 859.76 873.25 FTSE/ASE 20 298.92 304.25

Hong Kong Hang Seng 22445.58 22503.35 HS China Enterprise 11142.92 11161.56 HSCC Red Chip 4476.76 4522.86

Hungary Bux 17818.02 17805.54

India BSE Sens 19229.26 19355.26 S&P CNX 500 4674.05 4709.85

Indonesia Jakarta Comp 4320.19 4337.53

Ireland ISEQ Overall 3328.78 3342.48

Dec Dec 13 12

Israel Tel Aviv 100 1089.14 1096.91

Italy FTSE MIB 15866.29 15764.98 FTSE Italia Mid Cap 16971.39 16819.58 FTSE Italia All-Sh 16747.24 16647.24

Japan Nikkei 225 9742.73 9581.46 Topix 799.21 791.29 S&P Topix 150 674.92 666.76 2nd Section 2369.15 2357.75

Jordan Amman SE 4492.20 4494.10

Kenya NSE 20 4031.70 (c)

Latvia OMX Riga 386.44 386.57

Lithuania OMX Vilnius 351.93 351.37

Luxenbourg Luxembourg General 838.08 839.08

Malaysia FTSE Bursa KLCI 1652.75 1649.75

Mexico IPC 43145.63 (c)

Morocco MASI 9656.95 9701.61

Netherlands AEX 343.83 344.35 AEX All Share 530.29 531.20

New Zealand NZX 50 3974.73 3995.26

Nigeria SE All Share 27663.52 27514.18

Norway Oslo All Share 490.59 492.37

Pakistan KSE 100 16806.58 16744.60

Philippines Manila Comp 5787.95 5819.79

Poland Wig 46653.84 46717.72

Portugal PSI General 2306.26 2298.47 PSI 20 5615.41 5561.47

Romania BET Index 4822.57 4820.02

Russia RTS 1497.27 1506.91 Micex Index 1460.93 1471.80

Singapore FTSE Straits Times 3156.55 3141.57

Slovakia SAX 191.08 190.87

Slovenia SBI TOP 603.43 608.42

South Africa FTSE/JSE All Share 38676.70 38763.64 FTSE/JSE Top 40 34287.11 34415.32 FTSE/JSE Res 20 50766.85 51164.49

South Korea Kospi 2002.77 1975.44 Kospi 200 265.79 261.67

Spain Madrid SE 808.13 804.64 IBEX 35 8017.10 7986.80

Sri Lanka CSE All Share 5547.36 5516.64

Sweden OMX Stockholm 30 1092.12 1103.35 OMX Stockholm AS 339.28 342.86

Switzerland SMI Index 6919.54 6959.39

Taiwan Weighted Pr 7757.09 7690.19

Thailand Bangkok SET 1353.81 1354.57

Turkey ISE 100 76963.34 77404.37

UK FTSE 100 5929.61 5945.85 FT30 2174.00 2173.20 FTSE All Share 3100.57 3108.25 FTSE techMARK 100 2471.37 2479.55 FTSE4Good UK (u) 5012.21

USA S&P 500 1420.68 1428.48 FTSE Nasdaq 5000 7963.17 8025.41 Nasdaq Cmp 2992.61 3013.81 Nasdaq 100 2652.11 2674.57 Russell 2000 826.22 829.39 NYSE Comp. 8350.25 8380.88 Wilshire 5000 (u) 14960.44 DJ Industrial 13191.25 13245.45 DJ composite 4419.70 4434.82 DJ Transport 5175.39 5174.74 DJ Utilities 451.83 453.43

Venezuela IBC 473170.03 466462.63

Vietnam VNI 391.19 391.08

Cross-Border Stoxx 50 € 2593.21 2601.33 Euro Stoxx 50 € 2627.66 2630.34 DJ Global Titans $ 195.37 195.95 Euronext 100 ID 682.73 683.68 FTSE Multinatls $ (u) 1217.95 FTSE Global 100 $ 1065.07 1068.53 FTSE4Good Glob $ (u) 4505.91 FTSE E300 1134.86 1139.65 FTSEurofirst 80 € 3443.58 3447.12 FTSEurofirst 100 € 3404.68 3415.54 FTSE Latibex Top € 4531.10 4554.70 FTSE Eurotop 100 2331.25 2340.26 FTSE Gold Min $ (u) 2866.23 FTSE All World (u) 222.46 FTSE World $ (u) 388.98 MSCI All World $ (u) 1332.27 MSCI ACWI Fr$ (u) 337.79 MSCI Europe € (u) 1152.13 MSCI Pacific $ (u) 2054.45 S&P Global 1200 $ 1491.86 1496.96 S&P Europe 350 € 1143.21 1147.70 S&P Euro € 1098.87 1100.21

Country Index Dec Dec 13 12

Dec Dec 13 12

Country Index Country Index

(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 - WORLD MARKETS AT A GLANCE Gross No of US $ Day Mth YTD Total YTD Div stocks index % % % retn % YieldFTSE Global All-Cap 7240 378.60 0.2 4.6 13.2 480.80 16.2 2.7 Oil & Gas 175 430.27 0.5 2.9 1.2 595.83 4.2 3.1

Oil & Gas Producers 126 394.42 0.6 2.8 0.4 553.53 3.6 3.2Oil Equipment & Services 40 434.91 0.1 3.4 6.3 558.66 8.5 2.4Basic Materials 294 493.16 0.7 5.1 4.0 664.50 6.9 2.8Chemicals 109 544.11 0.2 7.5 16.1 742.86 19.2 2.6Forestry & Paper 15 168.83 0.6 7.9 8.5 247.25 12.2 3.4Mining 78 982.17 1.2 2.6 -4.8 1292.86 -2.1 2.9Industrials 514 246.06 0.2 5.2 14.3 319.48 17.2 2.5Construction & Materials 110 381.27 0.4 7.3 15.6 518.03 18.8 2.6Aerospace & Defense 27 320.71 -0.1 5.0 12.8 414.81 15.6 2.5General Industrial 52 173.38 0.5 4.0 18.0 238.54 21.2 2.8Electronic & Electrical Equipment 70 253.05 0.1 6.3 18.5 306.86 21.0 2.0Industrial Engineering 106 548.33 0.2 7.1 12.5 700.94 15.2 2.3Industrial Transportation 88 405.48 0.0 3.3 8.7 526.28 11.3 2.5Support Services 61 217.94 -0.2 3.9 13.3 272.82 16.3 2.6Consumer Goods 358 337.97 0.1 5.8 14.6 446.22 17.6 2.5Automobiles & Parts 88 297.04 0.6 9.7 16.7 378.35 19.3 2.1Beverages 46 473.01 -0.5 5.1 19.6 632.15 22.5 2.3Food Producers 88 457.07 0.2 4.2 11.5 623.06 14.4 2.5Leisure Goods 21 111.51 1.4 4.0 -15.0 137.40 -13.1 1.8Personal Goods 64 506.77 -0.4 6.0 19.8 649.67 22.3 2.0Tobacco 13 991.03 0.3 4.9 13.0 1693.57 17.0 3.9Health Care 145 286.23 -0.2 4.5 17.6 374.10 20.8 2.5Health Care Equipment & Services 58 375.37 0.2 4.4 17.3 415.57 18.8 1.3Pharmaceuticals & Biotechnology 87 222.41 -0.3 4.5 17.6 299.49 21.4 2.9Consumer Services 348 269.60 0.0 4.0 18.9 331.87 21.5 2.1Food & Drug Retailers 50 223.60 0.2 5.7 10.6 283.31 13.7 2.6General Retailers 112 363.30 -0.4 2.9 21.1 437.89 23.4 1.8Media 80 192.33 0.1 5.3 27.8 237.79 30.6 2.0Travel & Leisure 106 270.13 0.4 3.1 11.4 335.54 13.8 2.2Telecommunication 95 148.77 0.5 2.6 4.1 231.05 9.7 5.2Fixed Line Telecommuniations 44 127.22 0.7 2.9 1.1 212.85 7.4 6.2Mobile Telecommunications 51 155.37 0.4 2.3 7.4 222.48 12.1 4.2Utilities 156 227.67 0.2 2.9 -2.5 369.48 2.0 4.8Electricity 112 237.10 0.2 3.9 -5.9 382.19 -1.8 4.7Gas Water & Multiutilities 44 260.82 0.1 1.6 3.1 431.40 8.1 5.0Financials 616 172.63 0.6 5.6 22.7 245.86 26.6 3.0Banks 236 173.06 0.6 6.2 22.1 259.91 26.4 3.4Nonlife Insurance 65 152.62 0.8 5.5 20.0 197.87 23.5 2.6Life Insurance 46 151.17 0.6 6.1 24.6 212.23 28.5 2.8Technology 169 118.28 -0.2 4.7 12.8 133.90 14.6 1.7Software & Computer Services 65 188.88 -0.4 3.2 13.1 209.43 14.7 1.3Technology Hardware & Equipment 104 94.92 -0.1 5.7 12.5 108.80 14.6 1.9

Dec 12Countries & regions

FTSE Global Large Cap 1240 340.30 0.3 4.6 12.9 439.63 16.2 2.9FTSE Global Mid Cap 1630 481.29 0.2 5.0 14.1 591.02 16.7 2.3FTSE Global Small Cap 4370 508.28 0.1 4.3 13.6 608.73 15.8 2.1FTSE All-World (Large/Mid Cap) 2870 222.46 0.3 4.7 13.1 297.38 16.3 2.8FTSE World (Large/Mid Cap) 2465 388.98 0.2 4.7 13.0 698.46 16.1 2.8FTSE Global All Cap ex UK 6919 383.79 0.2 4.6 13.2 481.84 16.2 2.6FTSE Global All Cap ex USA 5306 417.25 0.5 5.5 12.6 554.25 16.3 3.2

FTSE Japan Large Cap 171 248.12 0.1 5.3 1.9 291.97 4.3 2.5FTSE Japan Mid Cap 277 332.04 -0.3 3.9 -3.4 381.84 -1.5 2.0FTSE Japan Small Cap 726 390.60 -0.2 4.3 1.5 461.11 3.8 2.2FTSE Japan (Large/Mid Cap) 448 100.85 0.0 5.1 0.9 133.65 3.2 2.4

FTSE North America Large Cap 277 316.98 0.1 3.4 13.4 390.10 16.0 2.4FTSE North America Mid Cap 411 474.80 0.1 4.0 13.3 557.56 15.3 1.8FTSE North America Small Cap 1500 497.17 -0.1 4.1 12.1 569.38 13.8 1.6FTSE All-World North America 688 212.12 0.1 3.5 13.4 268.36 15.9 2.3FTSE All-World Dev ex North Am 1386 210.31 0.4 6.1 13.0 299.25 16.9 3.3

FTSE Asia Pacific Large Cap ex Japan 427 613.24 0.7 5.0 18.3 834.53 22.1 2.9FTSE Asia Pacific Mid Cap ex Japan 445 758.30 0.9 5.4 18.4 1007.93 21.9 2.9FTSE Asia Pacific Small Cap ex Japan 1214 547.07 0.8 2.8 13.5 717.74 16.7 2.8

FTSE Latin Americas All-Cap 208 1253.17 -0.1 4.1 4.9 1686.09 7.7 3.1FTSE Middle East Africa All-Cap 206 724.32 0.4 2.8 11.0 990.31 14.8 3.2FTSE UK All Cap 321 328.15 0.4 4.9 12.8 466.92 17.0 3.6FTSE USA All Cap 1934 352.47 0.0 3.6 13.8 425.38 16.1 2.1FTSE Europe All Cap 1378 358.13 0.4 6.8 15.4 496.60 19.9 3.6FTSE Eurobloc All Cap 657 321.27 0.5 8.6 15.6 452.05 20.5 3.8

FTSE RAFI All-World 3000 Index 2998 4744.72 0.4 5.3 11.2 5475.34 14.8 3.1FTSE RAFI US 1000 Index 992 6332.44 0.1 3.9 13.9 7462.15 16.6 2.3FTSE EDHEC-Risk Efficient All-W 2870 247.49 0.2 4.4 13.6 310.58 16.6 2.6FTSE EDHEC-Risk Efficient Dev Eur 512 238.12 0.3 6.6 16.3 319.94 20.3 3.2

The FTSE Global Equity Series, launched in 2003, contains the FTSE Global Small Cap Indices and broader FTSE Global All Cap Indices (large/mid/small cap) as well as the enhanced FTSE All-World index Series (large/mid cap) - please see www.ftse.com/geis. The trade names Fundamental Index® and RAFI® are registered trademarks and the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC (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, WO 2008/118372, EPN 1733352, and HK1099110). “EDHEC™” is a trade mark of EDHEC Business School As of January 2nd 2006, FTSE is basing its sector indices on the Industrial Classification Benchmark - please see www.ftse.com/icb. For constituent changes and other information about FTSE, please see www.ftse.com. © FTSE International Limited. 2012. All Rights reserved. ”FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence.

Gross No of US $ Day Mth YTD Total YTD Div stocks index % % % retn % YieldCountries & regions

FTSE GLOBAL EQUITY INDEX SERIES

FTSE Global All Cap ex Eurobloc 7240 378.60 0.2 4.6 13.2 480.80 16.2 2.7FTSE Global All Cap ex Eurobloc 6583 386.60 0.2 4.2 12.9 483.42 15.8 2.5FTSE All-World Developed 2074 344.19 0.2 4.7 13.2 439.99 16.3 2.7FTSE Developed All-Cap 5607 359.61 0.2 4.6 13.2 455.81 16.2 2.6FTSE Developed Large Cap 842 322.03 0.2 4.6 13.1 415.85 16.4 2.8FTSE Developed Europe Large Cap 200 319.92 0.4 6.7 13.7 454.55 18.4 3.8FTSE Developed Europe Mid Cap 312 416.62 0.3 7.2 19.5 551.71 23.2 2.9FTSE Developed Europe Small Cap 723 537.70 0.5 6.1 21.4 696.83 25.1 3.0

FTSE All-World Asia Pacific ex Japan 872 479.62 0.7 5.0 18.3 694.89 22.1 2.9FTSE All Emerging All-Cap 1633 730.00 0.7 4.9 13.0 952.29 16.6 3.0FTSE All Emerging Large-Cap 398 702.07 0.7 4.8 11.0 918.72 14.7 3.1FTSE All Emerging Mid-Cap 398 889.34 0.6 5.5 19.9 1163.70 23.2 2.6FTSE All Emerging Small-Cap 837 703.91 0.5 4.3 19.6 894.37 22.9 2.7FTSE All-World All Emerging Europe 81 492.83 1.3 7.7 18.7 641.64 23.8 3.7

No of Euro Day’s Change Yield xd adj Total retn stocks index chge % points gross % ytd (Euro) €

FTSE Dev Eur L Cap 200 281.6 -0.3 -1.0 3.8 11.89 400.0FTSE Dev Eur M Cap 311 366.0 -0.5 -1.9 3.0 12.22 485.0FTSE Dev Eur S Cap 723 473.6 -0.3 -1.2 3.0 14.80 613.8FTSE Dev Europe 511 183.9 -0.4 -0.7 3.7 7.44 273.8FTSEurofirst 80 80 3443.6 -0.1 -3.5 4.2 140.40 5015.5FTSEurofirst 100 100 3404.7 -0.3 -10.9 4.1 136.63 4965.4FTSEurofirst 300 312 1134.9 -0.4 -4.8 3.7 41.49 1793.0FTSEurofirst 300 Ezone 167 1064.0 -0.1 -1.6 4.0 41.26 1679.8

Further information is avaliable on http://www.ftse.com. © FTSE International Limited (”FTSE”) 2012. All rights reserved.”FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. `FTSEurofirst´ and `Eurofirst´ are registred trade marks of FTSE and Euronext N.V. All rights in and to the FTSEurofirst indices vest in FTSE and Euronext N.V.

FTSEurofirst 300 SupersectorsOil & Gas 18 317.3 -0.4 -1.4 4.6 13.62 448.0Chemicals 15 832.7 0.0 -0.3 2.6 22.92 1051.9Basic Resources 13 559.9 -0.3 -1.8 3.0 16.41 679.0Construction & Materials 12 357.6 -0.8 -2.8 4.1 14.62 467.9IndustrialGoods&Services 54 504.9 -0.8 -4.1 3.0 14.91 624.0Automobiles & Parts 9 556.5 -0.1 -0.5 3.2 18.27 669.6Food & Beverage 18 650.1 -0.3 -1.8 2.6 17.14 820.5Personal&HouseholdGds 19 674.9 -1.1 -7.5 2.6 18.06 840.9Health Care 19 417.1 -0.7 -2.9 3.5 14.50 542.5Retail 15 333.7 -0.5 -1.8 3.4 11.66 425.4Media 9 284.5 -0.5 -1.5 3.9 11.27 390.6Travel & Leisure 8 397.5 -0.6 -2.5 2.3 9.39 514.1Telecommunications 13 256.1 0.2 0.6 7.2 18.25 411.0Utilities 21 300.2 -0.1 -0.4 6.9 19.52 454.1Banks 29 153.5 -0.3 -0.4 3.6 5.29 208.5Insurance 19 288.9 0.1 0.2 4.2 12.07 398.9Financial Services 5 306.9 -0.5 -1.6 4.1 12.37 415.4Technology 11 241.7 -0.8 -1.9 2.3 5.27 286.4

Dec 13

EQUITY INDICES - FTSE EUROPEAN Week ago Yield P/E Yield P/E Yield P/E

Argentina 7.1 7.0 7.2 6.9 7.8 6.6Australia 4.5 15.9 4.5 15.9 4.5 15.7Austria 2.8 14.1 2.9 14.0 2.9 13.8Belgium 2.1 15.4 2.1 15.4 2.1 15.3Brazil 3.8 14.2 3.8 14.2 3.8 13.7Bulgaria 1.6 10.5 1.6 10.5 1.6 10.6Canada 3.0 15.5 3.0 15.4 3.0 15.3S&P/TSX 3.3 14.2 3.3 14.1 3.3 14.1Chile 3.1 19.3 3.1 19.1 3.1 18.8China 3.7 8.1 3.7 7.9 3.8 7.8Colombia 2.4 16.2 2.4 16.1 2.5 15.9Cyprys 2.1 37.6 2.0 38.3 2.1 38.1Czech Rep. 6.1 9.4 6.1 9.3 6.0 9.5Denmark 1.7 16.9 1.7 16.9 1.7 16.7Finland 5.1 15.9 5.1 15.9 5.3 15.7France 3.7 14.6 3.7 14.6 3.7 14.4Germany 3.1 12.1 3.1 12.1 3.2 11.9DAX 30 † 3.4 12.3 3.4 12.1 3.5 12.0Greece 1.9 14.3 1.9 14.3 2.1 13.4Hong Kong 2.6 12.9 2.7 12.8 2.7 12.8Hang Seng † 3.2 11.6 3.3 11.4 3.3 11.5Hungary 3.6 13.6 3.6 13.6 3.5 13.9India 1.5 17.6 1.5 17.6 1.5 17.6Indonesia 2.2 16.7 2.2 16.6 2.3 16.5Ireland 1.1 10.5 1.1 10.5 1.1 10.4Israel 3.4 14.5 3.4 14.7 3.4 14.5Italy 4.4 13.4 4.4 13.3 4.3 13.6Japan 2.4 14.5 2.4 14.4 2.4 14.3Topix † 2.4 0.4 2.4 0.4 2.4 0.4Luxemburg 3.9 9.4 3.9 9.4 3.9 9.4Malaysia 3.2 14.5 3.2 14.5 3.3 14.4

Week ago Yield P/E Yield P/E Yield P/E

Malta 4.7 15.7 4.7 15.6 4.7 15.8Mexico 1.8 19.6 1.8 19.7 1.9 19.1Netherland 2.8 14.3 2.8 14.3 2.9 14.2AEX † 3.6 10.4 3.7 10.4 3.7 10.3New Zealand 4.6 14.8 4.5 14.9 4.5 15.0Norway 4.4 9.5 4.4 9.5 4.5 9.3Pakistan 5.6 11.7 5.7 11.7 5.7 11.6Peru 5.0 39.4 5.0 38.8 5.1 38.3Philippines 1.7 20.2 1.7 20.2 1.8 19.9Poland 4.3 10.0 4.4 10.0 4.4 9.7Portugal 4.9 17.5 4.9 17.4 5.0 17.0Romania 5.2 10.0 5.2 9.9 5.1 9.9Russia 4.2 6.0 4.2 5.9 4.2 5.9Singapore 2.9 11.7 2.9 11.6 2.9 11.5Slovenia 4.2 11.7 4.2 11.7 4.3 11.6South Africa 3.5 15.9 3.5 15.8 3.5 15.6South Korea 1.3 16.4 1.4 16.3 1.4 16.1Spain 5.1 12.3 5.1 12.2 5.2 12.1Ibex 35 † 5.7 13.3 5.8 13.2 5.8 13.3Sri Lanka 2.6 13.5 2.7 13.3 2.7 13.0Sweden 3.7 12.6 3.7 12.7 3.8 12.5Switzerland 3.1 19.2 3.1 19.3 3.1 19.0Taiwan 3.4 18.9 3.4 18.7 3.4 18.7Thailand 3.0 15.1 3.0 14.9 3.0 14.8Turkey 2.0 11.7 2.0 11.7 2.1 11.6UK 3.4 12.6 3.5 12.5 3.5 12.4USA 2.2 15.8 2.2 15.9 2.2 15.7Dow Jones † 2.7 13.7 2.7 13.6 2.8 13.4S&P 500 † 2.6 15.1 2.6 15.1 2.6 15.0Venezuela 9.2 8.8 9.4 8.5 10.1 8.0

Country yields and P/E’s relate to a sample of stocks that cover at least 75% of each markets capita-lisation. † Losses are excluded from the P/E calculation on country indices. Source: ThomsonReuters

Dec 12 Dec 11 Dec 12 Dec 11STOCK MARKET - RATIOS

GlobalHFRX Global Hedge Fund Index 1143.29 0.1245 0.47 3.06HFRX Equal Weighted Strategies Index 1121.66 0.1725 0.42 2.08HFRX Absolute Return Index 953.75 0.1112 0.40 0.76HFRX Market Directional Index 1055.93 0.0731 0.61 3.34Equity HedgeHFRX Equity Hedge Index 1047.47 0.1508 0.33 4.70HFRX EH: Equity Market Neutral Index 935.84 0.2764 0.11 -4.64HFRX EH: Fundamental Growth Index 1480.38 0.2618 0.42 5.05HFRX EH: Fundamental Value Index 980.30 0.0722 0.35 6.10Event DrivenHFRX Event Driven Index 1371.30 0.1713 0.28 4.90HFRX ED: Distressed Restructuring Index 948.03 0.1226 0.04 0.46HFRX ED: Merger Arbitrage Index 1506.30 0.1255 1.03 0.84HFRX ED: Special Situations Index 1117.02 0.2729 0.38 4.18MacroHFRX Macro/CTA Index 1156.30 0.1503 0.82 -0.84HFRX Macro: Systematic Diversified CTA Index 1528.31 0.2408 1.40 -6.90Relative ValueHFRX Relative Value Arbitrage Index 1160.19 0.0322 0.51 2.83HFRX RV: FI-Convertible Arbitrage Index 696.30 0.3863 0.20 6.29HFRX RV: Multi-Strategy Index 1817.24 0.0671 0.49 2.65HFRI Monthly Strategy Indices - USD (Nov 2012)HFRI Fund Weighted Composite Index 10898.88 - 0.35 4.89HFRI Fund of Funds Composite Index 4982.62 - 0.44 3.56

HFR INDICES Index Value Dtd % Mtd % Ytd %December 11

Indices calculated by HFR (Hedge Fund Research Inc.) www.hfr.com

VOLATILITY INDICES Day Chng Prev. 52 wk high 52 wk low

VIX † 16.38 0.43 15.95 27.73 13.30VXD † 15.07 0.42 14.65 25.27 11.91VXN † 19.43 0.85 18.58 29.76 13.79VDAX ‡ 14.34 0.42 13.92 31.78 13.85

† CBOE. VIX: S&P 500 index Options Volatility, VXD: DJIA Index Options Volatility, VXN: NASDAQ Index Options Volatility, ‡ Deutsche Borse. VDAX: DAX Index Options Volatility.

Dec 13

Open Sett Change High Low Est. vol. Open int.Dec 12

North American Latest. Contracts shown are among the 25 most traded based on estimates of average volumes in 2004. CBOT volume, high & low for pit & electronic trading at settlement. Previous day’s Open Interest. † Osaka contract. ‡ Eurex contract.

DJIA Dec 13285.00 13230.00 -48.00 13320.00 13225.00 52 14,682DJ Euro Stoxx‡ Dec 2628.00 2629.00 +6.00 2644.00 2618.00 735,947 2,621,891S&P 500 Dec 1430.80 1427.20 -4.30 1438.80 1426.20 713 197,352Mini S&P 500 Dec 1431.25 1427.25 -4.25 1438.75 1426.00 1,820,148 2,898,050Nasdaq 100 Dec 2687.50 2670.25 -15.50 2695.75 2668.00 645 22,154Mini Nasdaq Dec 2686.25 2670.25 -15.50 2696.00 2668.00 271,822 393,224CAC 40 Dec 3643.50 3641.50 +7.00 3663.50 3629.50 69,689 366,252DAX Dec 7596.50 7615.00 +22.50 7644.00 7587.00 102,104 171,817AEX Dec 344.45 344.25 +0.20 345.60 343.15 19,856 94,563MIB 30 Dec 15605.00 15775.00 +204.00 15795.00 15575.00 19,197 36,223IBEX 35 Dec - 7968.80 +61.30 8036.00 7913.00 6,136 41,604SMI Dec 6979.00 6956.00 -25.00 7002.00 6951.00 36,206 160,047FTSE 100 Dec 5931.00 5949.00 +20.00 5965.00 5917.50 66,821 621,031Hang Seng Dec 22388.00 22517.00 +221.00 22535.00 22381.00 56,915 128,786Nikkei 225† Dec 9600.00 9580.00 +60.00 9700.00 9590.00 19,594 248,037Topix Dec 790.50 789.50 +4.00 797.00 790.50 3,976 186,586KOSPI 200 Dec - 262.00 +1.90 - - - 66,075

EQUITY INDEX FUTURES

INTEREST RATES www.ft.com/bonds&rates

INTEREST RATES www.ft.com/bonds&rates

Over Change One Three Six One night Day Week Month month month month yearUS$ Libor* 0.16150 - 0.002 0.008 0.20900 0.30800 0.51300 0.84600Euro Libor* 0.01357 - - -0.001 0.05429 0.12214 0.21571 0.43643£ Libor* 0.48000 - - -0.004 0.49313 0.51875 0.66875 1.01313Swiss Fr Libor* -0.01800 -0.006 0.012 -0.018 -0.00800 0.01400 0.06800 0.25800Yen Libor* 0.09429 - -0.001 0.001 0.13371 0.18143 0.28714 0.49829Canada Libor* 0.95800 - -0.002 -0.008 1.05600 1.23100 1.52300 1.94400Euro Euribor - - - - 0.11 0.18 0.32 0.54Sterling CDs - - - - 0.46 0.58 0.64 0.88US$ CDs - - - - 0.15 0.27 0.42 0.72Euro CDs - - - - -0.05 0.00 0.10 0.25US o’night repo 0.27 -0.020 -0.040 -0.010Fed Funds eff 0.17 0.010 - 0.010US 3m Bills 0.06 -0.025 -0.035 -0.035SDR int rate 0.07 - - -EONIA 0.066 -0.001 -0.003 -0.016EURONIA 0.0108 -0.004 0.003 0.017RONIA 0.4540 -0.035 -0.001 0.021SONIA 0.4309 0.001 0.002 0.007LA 7 Day Notice 0.31-0.26

Interbank £ 0.49-0.31 0.50-0.40 0.53-0.43 0.62-0.52 0.88-0.78 1.09-0.99

Over One One Three Six One night Week months months months year

*Libor rates come from BBA (see www.bba.org.uk) and are fixed at 11am UK time. Other data sour-ces: US $, Euro & CDs: dealers; SDR int rate: IMF; EONIA: ECB; EURONIA, RONIA & SONIA: WMBA. LA 7 days notice: Tradition (UK).

Dec 13

INTEREST RATES - MARKET

Euro 0.04 - -0.02 0.10 - 0.06 0.11 - 0.01 0.18 - 0.08 0.30 - 0.17 0.52 - 0.36Danish Krone -0.25 - -0.50 -0.10 - -0.30 -0.25 - -0.45 -0.10 - -0.30 0.05 - -0.15 0.36 - 0.16Sterling 0.48 - 0.38 0.49 - 0.39 0.52 - 0.42 0.66 - 0.49 0.80 - 0.63 0.96 - 0.79Swiss Franc 0.03 - -0.17 0.08 - -0.12 -0.18 - -0.38 0.35 - -0.15 0.20 - -0.10 0.35 - 0.05Canadian Dollar 1.00 - 0.85 1.10 - 0.90 1.27 - 0.97 1.35 - 1.05 1.52 - 1.42 1.89 - 1.66US Dollar 0.14 - 0.06 0.31 - 0.21 0.40 - 0.20 0.46 - 0.26 0.63 - 0.38 0.90 - 0.65Japanese Yen 0.15 - 0.05 0.11 - -0.01 0.14 - 0.02 0.17 - 0.03 0.24 - 0.12 0.43 - 0.31Singapore $ 0.03 - 0.01 0.36 - 0.16 0.31 - 0.06 0.38 - 0.13 0.44 - 0.19 0.56 - 0.31

Source: Reuters. Short term rates are call for the US Dollar and Yen, others: two day’s notice.

Short 7 days One Three Six One term notice month month month yearDec 13

Rate Current Since Last Mth ago Year ago

USUSUSEuroUKJapanSwitzerland

Fed Funds Prime Discount Repo Repo O’night Call Libor target

Source: ThomsonReuters

0.00-0.25 16-12-2008 1.00 0.00-0.25 0.00-0.25 3.25 16-12-2008 4.00 3.25 3.25 0.75 18-02-2010 0.50 0.75 0.75 0.75 05-07-2012 1.00 0.75 1.25 0.50 05-03-2009 1.00 0.50 0.50 0.00-0.10 05-10-2010 0.10 0.00-0.10 0.00-0.10 0.00-0.25 03-08-2011 0.00-0.75 0.00-0.25 0.00-0.25

Dec 13

INTEREST RATES - OFFICIAL

Source: Bank of England. New Sterling ERI base Jan 2005 = 100. Other indices base average 1990 = 100. Index rebased 1/2/95. for further information about ERIs see www.bankofengland.co.uk

Australia 110.7 110.5 108.8Canada 114.7 114.6 112.7Denmark 105.6 105.4 104.7Japan 169.2 170.8 180.2New Zealand 114.6 113.9 110.5Norway 109.7 109.8 108.9

Sweden 85.2 85.6 85.5Switzerland 144.3 143.8 143.4UK 83.7 83.7 83.8USA 80.9 80.8 80.9Euro 90.77 90.44 88.48

Mth ago Dec 13 Dec 12 Mth ago Dec 13 Dec 12FX - EFFECTIVE INDICES

DOLLAR EURO POUND Closing Day’s Closing Day’s Closing Day’s Currency Mid Change Mid Change Mid Change

DOLLAR EURO POUND Closing Day’s Closing Day’s Closing Day’s Currency Mid Change Mid Change Mid Change

Rates are derived from WM/Reuters at 4pm (London time). * The closing mid-point rates for the Euro and £ against the $ are shown in brackets.The other figures in the dollar column of both the Euro and Sterling rows are in the reciprocal form in line with market convention. Currency redenominated by 1000. Some values are rounded by the F.T. The exchange rates printed in this table are also available on the internet at http://www.FT.com/marketsdataEuro Locking Rates: Austrian Schilling 13.7603, Belgium/Luxembourg Franc 40.3399, Cyprus 0.585274, Finnish Markka 5.94572, French Franc 6.55957, German Mark 1.95583, Greek Drachma 340.75, Irish Punt 0.787564, Italian Lira1936.27, Malta 0.4293, Netherlands Guilder 2.20371, Portuguese Escudo 200.482, Slovenia Tolar 239.64, Spanish Peseta 166.386

Argentina (Peso) 4.8738 - 6.3786 0.0232 7.8641 0.0093Australia (A$) 0.9481 -0.0004 1.2409 0.0041 1.5298 0.0012Bahrain (Dinar) 0.3770 - 0.4934 0.0018 0.6083 0.0007Bolivia (Boliviano) 6.9100 - 9.0435 0.0328 11.1496 0.0131Brazil (R$) 2.0789 -0.0026 2.7207 0.0065 3.3543 -0.0003Canada (C$) 0.9841 -0.0011 1.2879 0.0032 1.5879 0.0001Chile (Peso) 474.850 - 621.460 2.2555 766.194 0.9022China (Yuan) 6.2329 -0.0189 8.1573 0.0049 10.0571 -0.0187Colombia (Peso) 1796.73 -0.3250 2351.46 8.1105 2899.11 2.8899Costa Rica (Colon) 498.010 -0.0350 651.771 2.3197 803.565 0.8898Czech Rep. (Koruna) 19.2818 -0.0913 25.2350 -0.0275 31.1121 -0.1105Denmark (DKr) 5.7006 -0.0204 7.4607 0.0006 9.1983 -0.0220Egypt (Egypt £) 6.1705 0.0085 8.0757 0.0404 9.9564 0.0254Hong Kong (HK$) 7.7502 0.0001 10.1430 0.0369 12.5053 0.0149Hungary (Forint) 216.722 0.1807 283.635 1.2650 349.692 0.7029India (Rs) 54.4350 0.1900 71.2418 0.5063 87.8336 0.4096Indonesia (Rupiah) 9635.00 5.0000 12609.8 52.2860 15546.6 26.3647Iran (Rial) 12365.0 - 16182.7 58.7337 19951.5 23.4935Israel (Shk) 3.7903 0.0118 4.9606 0.0333 6.1159 0.0262Japan (Y) 83.6100 0.6800 109.425 1.2839 134.909 1.2548 One Month 83.5820 0.0020 109.422 0.0031 134.856 0.0035 Three Month 83.5427 0.0013 109.431 0.0027 134.767 0.0053 One Year 83.2599 0.0087 109.411 0.0113 134.200 0.0088Kenya (Shilling) 85.8750 - 112.389 0.4079 138.564 0.1631Kuwait (Dinar) 0.2817 0.0001 0.3687 0.0016 0.4545 0.0008Malaysia (M$) 3.0540 0.0025 3.9970 0.0178 4.9278 0.0099Mexico (New Peso) 12.7669 0.0201 16.7086 0.0868 20.6000 0.0567New Zealand (NZ$) 1.1846 -0.0051 1.5504 -0.0010 1.9115 -0.0059Nigeria (Naira) 157.750 0.0500 206.455 0.8145 254.538 0.3803Norway (NKr) 5.6221 -0.0060 7.3579 0.0188 9.0715 0.0009Pakistan (Rupee) 97.3700 0.1700 127.433 0.6842 157.111 0.4590Peru (New Sol) 2.5659 -0.0053 3.3582 0.0053 4.1402 -0.0036Philippines (Peso) 41.0800 0.0600 53.7635 0.2734 66.2847 0.1748

Poland (Zloty) 3.1287 -0.0127 4.0947 -0.0018 5.0483 -0.0146Romania (New Leu) 3.4218 -0.0482 4.4783 -0.0465 5.5212 -0.0710Russia (Rouble) 30.6723 0.1093 40.1424 0.2882 49.4912 0.2343Saudi Arabia (SR) 3.7502 0.0000 4.9081 0.0178 6.0511 0.0071Singapore (S$) 1.2203 -0.0008 1.5970 0.0048 1.9690 0.0011South Africa ( R) 8.6454 -0.0147 11.3146 0.0220 13.9497 -0.0072South Korea (Won) 1073.05 -1.9500 1404.35 2.5542 1731.42 -1.1039Sweden (SKr) 6.6701 0.0177 8.7295 0.0548 10.7626 0.0412Switzerland (SFr) 0.9234 -0.0057 1.2085 -0.0030 1.4900 -0.0073Taiwan (T$) 29.0510 -0.0025 38.0205 0.1348 46.8753 0.0511Thailand (Bt) 30.6500 0.0250 40.1132 0.1782 49.4553 0.0985Tunisia (Dinar) 1.5656 -0.0034 2.0490 0.0031 2.5262 -0.0026Turkey (Lira) 1.7811 0.0010 2.3311 0.0098 2.8739 0.0050U A E (Dirham) 3.6730 - 4.8071 0.0174 5.9266 0.0069UK (0.6198)* (£) 1.6136 0.0019 0.8111 0.0020 - - One Month 1.6135 - 0.8114 - - - Three Month 1.6132 0.0001 0.8120 0.0000 - - One Year 1.6118 0.0000 0.8153 0.0000 - -Ukraine (Hrywnja) 8.1060 0.0110 10.6088 0.0528 13.0795 0.0332Uruguay (Peso) 19.2000 - 25.1280 0.0911 30.9802 0.0364USA ($) - - 1.3088 0.0048 1.6136 0.0019 One Month - - 1.3092 - 1.6135 - Three Month - - 1.3099 - 1.6132 0.0001 One Year - - 1.3141 0.0000 1.6118 0.0000Venezuela (Bolivar Fuerte) 4.2947 - 5.6207 0.0204 6.9296 0.0081Vietnam (Dong) 20840.0 - 27274.4 98.9887 33626.4 39.5960

Euro (0.7641)* (Euro) 1.3088 0.0048 - - 1.2329 -0.0030 One Month 1.3092 - - - 1.2324 - Three Month 1.3099 - - - 1.2315 0.0000 One Year 1.3141 0.0000 - - 1.2266 0.0000

SDR - 0.6505 -0.0004 0.8513 0.0025 1.0496 0.0006

Dec 13

CURRENCIES www.ft.com/currencies

C$ DKr Euro Y NKr SKr SFr £ $

Danish Kroner, Norwegian Kroner And Swedish Kroner per 10; Yen per 100Source: FT derived from WM Reuters.

Canada C$ 1 5.793 0.776 84.97 5.713 6.778 0.938 0.630 1.016

Denmark DKr 1.726 10 1.340 146.7 9.862 11.70 1.620 1.087 1.754

Euro Euro 1.288 7.461 1 109.4 7.358 8.730 1.209 0.811 1.309

Japan Y 1.177 6.818 0.914 100 6.724 7.978 1.104 0.741 1.196

Norway NKr 1.750 10.14 1.359 148.7 10 11.86 1.642 1.102 1.779

Sweden SKr 1.475 8.546 1.146 125.4 8.429 10 1.384 0.929 1.499

Switzerland SFr 1.066 6.173 0.827 90.55 6.088 7.223 1 0.671 1.083

UK £ 1.588 9.198 1.233 134.9 9.072 10.76 1.490 1 1.614

USA $ 0.984 5.701 0.764 83.61 5.622 6.670 0.923 0.620 1

Dec 13EXCHANGE CROSS RATES

Day’s Mth’s Spread Red Ratings Bid Bid chge chge vs date Coupon S* M* F* price yield yield yield GovtsDec 13

US$Bank of America 01/13 4.88 A- Baa2 A 100.29 0.97 0.39 -0.49 0.92Goldman Sachs 07/13 4.75 A- A3 A 102.28 0.77 -0.04 0.07 0.65Hutchison 03/33 01/14 6.25 A- A3 A- 105.40 1.29 0.00 0.13 1.14Misc Capital 07/14 6.13 BBB Baa2 - 106.30 1.94 0.00 -0.02 1.70BNP Paribas 06/15 4.80 A- Baa3 A 104.01 3.13 0.53 0.56 2.80GE Capital 01/16 5.00 AA+ A1 - 110.89 1.35 -0.04 -0.02 1.01Erste Euro Lux 02/16 5.00 AAA - - 102.41 4.17 0.02 -1.42 3.78Credit Suisse USA 03/16 5.38 A+ A1 A 112.37 1.41 0.03 0.00 0.92SPI E&G Aust 09/16 5.75 A- A1 A 110.91 2.66 0.01 -0.31 2.32Abu Dhabi Nt En 10/17 6.17 A- A3 - 117.00 2.43 -0.05 -0.01 1.80Swire Pacific 04/18 6.25 A- A3 A 119.30 2.38 0.03 0.02 1.70ASNA 11/18 6.95 A- Baa2 A 120.88 3.04 0.05 -0.25 2.37Codelco 01/19 7.50 A A1 A+ 128.63 2.41 0.06 0.08 1.27Bell South 10/31 6.88 A- WR A 125.54 4.80 -0.12 0.05 3.07GE Capital 01/39 6.88 AA+ A1 - 133.90 4.62 0.02 0.23 1.70Goldman Sachs 02/33 6.13 A- A3 A 115.31 4.92 0.02 -0.06 1.99

EuroAmer Honda Fin 07/13 6.25 A+ A1 - 103.24 0.58 -0.17 -0.15 0.54SNS Bank 02/14 4.63 BBB Baa2 BBB+ 102.74 2.22 0.02 0.04 2.20JPMorgan Chase 01/15 5.25 A A2 A+ 109.11 0.80 0.01 -0.03 0.86Hutchison Fin 06 09/16 4.63 A- A3 A- 112.75 1.14 -0.05 -0.09 0.99Hypo Alpe Bk 10/16 4.25 - A1 - 103.22 3.35 0.02 -0.07 3.26GE Cap Euro Fdg 01/18 5.38 AA+ A1 - 118.97 1.47 -0.02 -0.13 1.11Unicredit 01/20 4.38 BBB+ Baa2 A- 101.96 4.05 -0.14 -0.40 3.25ENEL 05/24 5.25 BBB+ Baa2 BBB+ 103.65 4.82 0.04 -0.01 3.40

YenACOM 51 06/13 2.07 BB+ WR BBB+ 100.49 1.01 0.01 -0.03 0.91Deutsche Bahn Fin 12/14 1.65 AA Aa1 AA 102.75 0.24 0.00 -0.02 0.14Nomura Sec S 3 03/18 2.28 - - - 100.59 2.16 0.01 -0.06 1.97

£ SterlingSlough Estates 09/15 6.25 - - A- 110.63 2.25 -0.06 -0.25 1.89ASIF III 12/18 5.00 A+ A2 A 110.71 3.00 0.03 -0.39 1.80

US $ denominated bonds NY close; all other London close. S* - Standard & Poor’s, M* - Moody’s, F* - Fitch. Source: ThomsonReuters

BONDS - GLOBAL INVESTMENT GRADE

Day’s Mth’s Spread Red Ratings Bid Bid chge chge vs date Coupon S* M* F* price yield yield yield USDec 13

High Yield US$HSBK Europe 05/13 7.75 BB Ba3 BB- 101.83 3.14 -0.25 -1.28 3.00Kazkommerts Int 04/14 7.88 B+ Caa1 B 99.08 8.62 0.10 0.13 8.35Bertin 10/16 10.25 BB B1 - 108.80 7.54 0.31 0.23 7.06

High Yield EuroRoyal Carib Crs 01/14 5.63 BB Ba1 - 101.50 4.20 -0.01 -0.23 4.22Kazkommerts Int 02/17 6.88 B+ Caa1 B 88.20 10.51 0.04 -1.17 10.35

Emerging US$Bulgaria 01/15 8.25 BBB Baa2 BBB- 113.94 1.41 -0.01 0.09 1.17Peru 02/15 9.88 BBB Baa2 BBB 118.25 1.19 -0.04 -0.26 0.94Brazil 03/15 7.88 BBB Baa2 BBB 114.73 1.14 0.21 0.35 0.89Mexico 09/16 11.38 BBB Baa1 BBB 137.25 1.17 0.00 0.12 0.84Argentina 01/17 11.38 27.81 59.18 - - 58.54Philippines 01/19 9.88 BB+ Ba1 BB+ 144.75 2.01 -0.03 0.17 0.88Brazil 01/20 12.75 BBB Baa2 BBB 169.11 2.16 0.09 0.11 1.03Colombia 02/20 11.75 BBB- Baa3 BBB- 161.70 2.36 -0.08 -0.01 1.26Russia 03/30 7.50 BBB Baa1 BBB 127.31 2.71 -0.05 -0.15 2.04Mexico 08/31 8.30 BBB Baa1 BBB 160.00 3.79 0.03 0.07 2.06Indonesia 02/37 6.63 BB+ Baa3 BBB- 134.50 4.31 0.01 0.02 1.39

Emerging EuroBrazil 02/15 7.38 BBB Baa2 BBB 113.63 0.88 0.02 0.07 0.93Poland 02/16 3.63 A- A2 A- 108.31 0.92 -0.02 -0.17 0.91Turkey 03/16 5.00 BB Ba1 BBB- 108.74 2.14 -0.01 -0.24 2.14Mexico 02/20 5.50 BBB Baa1 BBB 119.75 2.46 0.01 -0.08 1.67

US $ denominated bonds NY close; all other London close. *S - Standard & Poor’s, M - Moody’s, F - Fitch. Source: ThomsonReuters

BONDS - HIGH YIELD & EMERGING MARKET

Euro-€ £ Stig. SwFr US $ Yen Bid Ask Bid Ask Bid Ask Bid Ask Bid Ask1 year2 year3 year4 year5 year6 year7 year8 year9 year10 year12 year15 year20 year25 year30 year

Bid and Ask rates as of close of London business. £ and Yen quoted on a semi-annual actual/365 basis against 6 month Libor with the exception of the 1Year GBP rate which is quoted annual actual against 3M Libor. Euro/Swiss Franc quoted on an annual bond 30/360 basis against 6 month Euribor/Libor. Source: ICAP plc.

-0.01 0.06-0.02 0.070.02 0.100.11 0.190.22 0.300.35 0.430.48 0.560.61 0.690.73 0.810.83 0.910.99 1.091.15 1.251.26 1.361.32 1.421.36 1.46

0.29 0.320.34 0.370.43 0.460.59 0.620.78 0.811.00 1.031.21 1.241.41 1.441.58 1.611.73 1.761.99 2.022.25 2.282.47 2.502.58 2.612.64 2.67

0.21 0.270.18 0.240.17 0.230.19 0.250.23 0.290.30 0.360.38 0.440.48 0.540.59 0.650.70 0.760.92 1.001.22 1.301.57 1.651.73 1.811.82 1.90

0.49 0.520.65 0.690.72 0.760.83 0.880.99 1.041.16 1.211.35 1.401.53 1.581.71 1.761.88 1.932.13 2.202.40 2.492.68 2.812.83 2.962.90 3.03

0.28 0.320.33 0.370.43 0.470.59 0.630.77 0.810.96 1.001.15 1.191.31 1.351.46 1.501.60 1.641.82 1.862.04 2.082.19 2.232.23 2.272.25 2.29

Dec 13

INTEREST RATES - SWAPS

Red Bid Bid Day chg Wk chg Month Year Date Coupon Price Yield yield yield chg yld chg yldDec 13

London close. Source: ThomsonReutersYields: Local market standard Annualised yield basis. Yields shown for Italy exclude withholding tax at 12.5 per cent payable by non residents.

Australia 10/14 4.50 103.12 2.75 0.07 0.10 0.07 -0.34 04/23 5.50 118.99 3.32 0.13 0.15 0.24 -0.53Austria 10/14 3.40 106.15 0.05 0.02 -0.05 -0.01 -1.06 11/22 3.40 115.10 1.73 -0.01 -0.01 -0.08 -1.48Belgium 09/14 4.25 107.38 0.09 -0.01 -0.03 -0.10 -3.13 09/22 4.25 118.67 2.12 -0.01 -0.04 -0.17 -2.41Canada 11/14 1.00 99.81 1.10 0.03 0.06 0.02 0.22 06/22 2.75 108.34 1.79 0.06 0.10 0.07 -0.23Denmark 11/14 2.00 104.11 -0.15 0.02 -0.01 -0.02 -0.44 11/23 1.50 101.11 1.39 0.05 0.08 0.04 -0.63Finland 09/14 3.13 105.44 0.00 0.03 -0.02 0.01 -0.44 09/22 1.63 100.45 1.58 0.00 -0.03 -0.07 -0.99France 10/14 4.00 107.31 0.05 0.00 -0.07 -0.06 -0.84 10/17 4.25 117.17 0.64 -0.02 -0.11 -0.21 -1.59 10/22 2.25 102.51 1.97 0.01 -0.04 -0.15 -1.32 04/41 4.50 127.88 3.02 -0.02 -0.05 0.01 -0.74Germany 12/14 - 100.11 -0.06 0.01 -0.06 -0.01 -0.32 10/17 0.50 100.88 0.32 0.00 -0.06 -0.04 -0.62 09/22 1.50 101.42 1.34 0.02 -0.01 0.00 -0.69 07/44 2.50 105.50 2.25 0.00 0.01 0.05 -0.28Greece 02/23 2.00 44.63 12.95 -0.40 -2.25 -5.14 -19.63 02/33 2.00 34.50 11.92 -0.28 -1.18 -4.38 -Ireland 10/17 5.50 109.03 3.44 -0.09 0.36 0.03 -5.02 10/20 5.00 101.59 4.75 -0.11 0.29 -0.25 -3.65Italy 11/14 6.00 107.32 2.07 -0.17 0.15 -0.34 -4.01 11/17 3.50 100.32 3.46 -0.14 0.14 -0.41 -3.34 11/22 5.50 107.23 4.63 -0.09 0.18 -0.39 -2.35 09/40 5.00 98.51 5.17 -0.18 -0.01 -0.46 -1.79Japan 12/14 0.10 100.00 0.10 0.00 0.00 0.00 -0.04 12/17 0.20 100.10 0.18 0.02 0.01 -0.02 -0.17 12/22 0.70 99.67 0.74 0.03 0.02 0.00 -0.28 09/32 1.70 99.85 1.71 0.05 0.02 0.06 -0.06Netherlands 07/14 3.75 105.86 0.02 0.01 -0.05 -0.01 -0.35 07/22 2.25 106.18 1.55 0.01 -0.02 -0.06 -0.87New Zealand 04/15 6.00 107.59 2.61 0.03 0.11 0.14 0.17 04/23 5.50 116.04 3.62 0.01 0.08 0.17 -0.31Norway 05/17 4.25 111.40 1.56 0.01 0.01 -0.01 0.21 05/23 2.00 98.45 2.17 0.02 -0.01 0.10 -0.20Portugal 06/14 4.38 100.59 3.95 -0.02 -0.07 -2.02 -12.85 10/23 4.95 82.45 7.35 -0.20 -0.18 -1.40 -5.75Spain 10/14 3.30 100.58 2.97 -0.02 0.01 -0.34 -1.65 01/22 5.85 103.10 5.41 -0.04 0.00 -0.50 -0.38Sweden 05/14 6.75 108.26 0.71 0.02 0.02 0.06 -0.09 06/22 3.50 117.97 1.45 0.00 -0.02 0.05 -0.16Switzerland 01/14 4.25 104.58 -0.11 0.06 0.06 0.08 -0.09 05/22 2.00 114.45 0.43 0.05 0.02 0.00 -0.33UK 03/14 2.25 102.33 0.35 0.01 0.01 0.08 -0.05 09/17 1.00 100.75 0.84 0.02 0.02 0.13 -0.22 09/22 1.75 99.09 1.85 0.03 0.05 0.13 -0.25 12/42 4.50 126.17 3.15 -0.02 0.02 0.09 -0.01US 11/14 0.25 100.01 0.25 0.00 0.00 -0.02 0.02 11/17 0.63 99.75 0.68 0.04 0.07 0.03 -0.19 11/22 1.63 99.06 1.73 0.08 0.14 0.12 -0.29 11/42 2.75 96.59 2.92 0.08 0.14 0.17 -0.13

BONDS - BENCHMARK GOVERNMENT

Overall (£) 1093 255.75 -0.18 -0.80 5.46 -0.89 6.81Overall ($) † 3262 217.13 -0.17 -0.22 4.75 -0.22 4.75Overall (€) 2276 191.63 0.04 0.33 10.66 0.87 12.26Global Inflation-Lkd † 97 249.01 0.05 0.35 8.24 2.00 9.65Gilts (£) 33 258.75 -0.22 -0.97 2.40 -1.06 3.75Corporates (£) 703 254.57 -0.10 -0.45 14.72 -0.56 16.20Corporates ($) † 2111 237.25 -0.13 -0.04 10.37 -0.04 10.37Corporates (€) 1196 191.35 0.05 0.50 13.06 0.67 14.21Treasuries ($) † 156 210.21 -0.22 -0.34 2.28 -0.34 2.28Eurozone Sov (€) 261 190.82 0.05 0.21 10.38 1.02 12.37ABF Pan-Asia unhedged 541 178.31 0.02 0.05 7.75 0.40 8.28

Day’s Month’s Year Return Return Index change change change 1 month 1 year

Sterling Corporate (£) 73 111.06 -0.12 -1.64 5.68 -1.18 11.04Euro Corporate (€) 303 107.41 -0.03 0.13 8.48 0.46 12.91Euro Emerging Mkts (€) 11 95.96 -0.06 0.35 8.63 0.79 14.60Eurozone Gov’t Bond 236 104.84 0.05 0.94 8.78 1.24 12.79

Emerging Markets 5Y 212.12 -2.93 -9.78 -30.30 257.25 207.30Nth Amer Inv Grade 5Y 93.24 -0.66 -4.53 -15.26 111.25 89.76Nth Amer High Yld 5Y 468.94 0.15 -24.99 -94.21 572.12 459.98Nth Amer HiVol 5Y 196.97 -1.34 -7.51 -22.59 226.49 180.96

Europe 5Y 114.81 0.01 -2.15 -16.42 141.39 114.80Crossover 5Y 462.75 -0.50 -13.10 -75.13 581.00 462.75HiVol 5Y 173.68 -1.68 -2.91 -27.11 211.37 173.68Japan 5Y 165.97 -4.32 -2.72 -38.48 227.22 165.38SovX CEEMEA 5Y 162.90 -0.31 -2.94 -16.26 231.44 162.90SovX Western Europe 5Y 111.86 -0.23 4.56 -11.24 148.75 103.54

Websites: markit.com, ftse.com. All indices shown are unhedged. Currencies are shown in brackets after the index names. †

Markit iBoxx

FTSE

Markit iTraxx

Markit CDX

CREDIT INDICES

Dec 13

Dec 13

Dec 13

Dec 12

Dec 12

BOND INDICES

Day’s Week’s Month’s Series Series Index change change change high low

Spread Spread Bid vs vs Yield Bund T-BondsDec 13

Spread Spread Bid vs vs Yield Bund T-Bonds

Australia 3.32 +1.97 +1.59Austria 1.73 +0.39 +0.00Belgium 2.12 +0.77 +0.39Canada 1.79 +0.44 +0.06Denmark 1.39 +0.05 -0.34Finland 1.58 +0.23 -0.15France 1.97 +0.62 +0.24Germany 1.34 - -0.39Greece 12.95 +11.60 +11.22Ireland 4.75 +3.41 +3.02Italy 4.63 +3.29 +2.90Japan 0.74 -0.61 -0.99

Netherlands 1.55 +0.21 -0.18New Zealand 3.62 +2.28 +1.89Norway 2.17 +0.82 +0.44Portugal 7.35 +6.01 +5.62Spain 5.41 +4.07 +3.68Sweden 1.45 +0.11 -0.28Switzerland 0.43 -0.91 -1.29UK 1.85 +0.51 +0.12US 1.73 +0.39 -

Yields: annualised basis. Source: ThomsonReu-ters Selection made by ThomsonReuters.

BONDS - TEN YEAR GOV’T SPREADS

Price Yield Month Break even Value No of return inflation* Stock Market stksCan 4.25% ’21 141.63 -0.32 -0.35 -0.22 2.14 5.2 65.3 6Fr 2.25% ’20 119.28 -0.26 -0.23 0.67 1.46 20.0 183.9 13Swe 0.25% ’22 102.91 0.06 0.04 0.02 1.40 16.8 239.0 5UK 2.5% ’16 344.24 -1.82 -1.86 -0.09 2.35 7.9 335.6 21UK 2.5% ’24 338.93 -0.57 -0.60 0.02 2.61 6.8 335.6 21UK 2% ’35 200.06 0.02 0.02 0.13 2.93 9.1 335.6 21US 0.625% ’21 114.56 -0.99 -1.03 -0.04 2.36 35.8 967.9 33US 3.625% ’31 160.61 -0.25 -0.29 0.23 2.56 16.8 967.9 33

Representative stocks from each major market Source: Merill Lynch Global Bond Indices* Diff between conventional and IL bond. † Local currencies. ‡ Total market value. In line with market convention, for UK Gilts inflation factor is applied to price, for other markets it is applied to par amount.

Dec 12 Dec 12 Dec 11

BONDS - INDEX-LINKED

Energy Price* Change

Sources: † NYMEX, ‡ ECX/ICE, u CBOT, @ NYSE Liffe, ™ NYBOT, ® CME, ´ LME/London Metal Exchange. * Latest prices, $ unless otherwise stated. ± Platts. ≠ The Steel Index.

Agricultural & Cattle Futures Price* Change

Precious Metals (PM London Fix)

Base Metals (´ LME 3 Month)

WTI Crude Oil † Jan 86.77 ncBrent Crude Oil ‡ Jan 109.50 ncRBOB Gasoline † Jan 2.6465 ncHeating Oil † Jan 2.9668 ncNatural Gas † Jan 3.382 ncEthanol u Jan 2.320 ncUranium 43.50 ncCarbon Emissions ‡ Dec €6.67 -0.08Diesel (French) 925.25 +3.75Unleaded (95R) 944.00 nc

Aluminium 2122.00 -10.00Aluminium Alloy 1965.00 -35.00Copper 8030.00 -100.00Lead 2292.50 -11.00Nickel 17500.00 -340.00Tin 22850.00 -275.00Zinc 2060.00 -26.00

Gold 1692.75 -23.50Silver (US Cents) 3269.00 -41.00Platinum 1607.00 -32.00Palladium 682.00 -15.00

Corn u Dec 721.00 ncWheat u Dec 794.75 ncSoyabeans u Jan 1473.50 ncSoyabeans Meal u Dec 459.50 ncCocoa v Mar £1530 -3Cocoa ™ Dec 2.452 0Coffee (Robusta) v Jan 1929 +32Coffee (Arabica) ™ Dec 138.15 ncWhite Sugar v Mar 500.20 ncSugar 11 ™ Mar 18.54 ncCotton ™ Mar 75.12 ncOrange Juice ™ Jan 134.10 ncPalm Oil Dec 750.00 +5.00Live Cattle ® Dec 126.350 ncFeeder Cattle ® Jan 152.750 ncLean Hogs ® Dec 82.075 nc

Bulk CommoditiesIron Ore (Platts) ± Jan 126.50 +2.50Iron Ore (TSI) ≠ 126.40 +1.40globalCOAL RB Index 86.03 -0.73Baltic Dry Index 799 -27

% Chg % Chg Mnth YearS&P GSCI Spt 637.05 0.1 -1.6DJ UBS Spt 140.90 0.1 -1.5R/J CRB TR 295.63 1.0 -3.6Rogers RICIX TR 3692.21 1.3 1.6M Lynch MLCX Spt 540.83 0.2 -0.6UBS B’berg CMCI TR 1309.42 1.7 2.6LEBA EUA Carbon 7.00 -14.9 -6.7LEBA CER Carbon 0.55 -41.5 -89.3LEBA UK Power 48.97 3.2 9.7

Dec 12

COMMODITIES

COMMODITIES www.ft.com/commodities

The data and prices listed are indicative and, while believed to be accurate at the time of publication, the FT does not warrant or guarantee that the information is reliable or complete. The FT does not accept responsibility and will not be liable for any loss arising from the reliance on or use of the information.

DECEMBER 14 2012 Section:Stats Time: 13/12/2012 - 18:35 User: sheehanr Page Name: CURRTAB USA, Part,Page,Edition: EUR, 23, 1

24 ★ FINANCIAL TIMES FRIDAY DECEMBER 14 2012

MARKETS & INVESTING

The ever­expanding digital threat to Fed’s jobless target

In recent months, something striking hasquietly occurred at Exim Bank, the USexport credit guarantee agency. For thefourth year in a row, the agency iswatching an export boom. So far this year,Exim has provided $35.8bn of exportfinancing to support $50bn of export sales,25 per cent up on last year.

But while that might seem good newsfor the American economy, there is acrucial catch: so far in 2012, the number ofjobs backing those Exim-supported exportshas fallen by 12 per cent.

Yes, you read that right. In 2012 Exim-supported companies have been sellingmore widgets and services, helping themto post profits and the economy to grow.But fewer workers were needed to produce

these sales, even in sectors which arebooming (such as engineering design).

It is a telling saga for investors,particularly in a week that Ben Bernanke,Federal Reserve chairman, has declaredthat the Fed will not tighten monetarypolicy until the US jobless rate dropsbelow 6.5 per cent. In some senses, theExim data may be extreme as it onlyreflects a tiny slice of corporate America.But it is not an aberration.

After all, this year the economy is ontrack to post growth of more than 2.5 percent. However, the unemployment rate hasbarely fallen, running at 7.7 per cent. Justlike those Exim-backed companies, theAmerican economy as a whole now seemsto be doing more with the same, or fewer,people. This is jobless growth.

Does that matter? The answer dependson what you think lies behind theseproductivity increases. Some economistsare apt to blame the pattern on cyclicalfactors. In the early stages of a recovery,the argument goes, companies tend to bewary about hiring people, preferringinstead to squeeze more output from theirworkers. Many prefer another culprit:

China and other emerging marketscountries. Jobs are being lost to cheaperlocations, the complaint goes, becauseAmerican companies are being undercutby cheaper factors, or are themselvesmoving their factories overseas.

But the Exim data suggest that thesetwo explanations do not explain all of thetrend. After all, the agency funds UScompanies that largely employ Americanworkers and typically see emerging

markets as a source of demand growth nota production threat. To make sense of thetrend, you also need to look at digitisation,or the growing tendency of businesses touse computers not simply to perform self-standing economic functions, but tocommunicate with each other via barcodes, and other digital networks.

The work of Brian Arthur, an academicat the Palo Alto Research Centre, is

instructive. Mr Arthur argues that sincedigitisation really took off in 1995, it hasperformed an ever-greater proportion ofeconomic functions. Indeed, he suggeststhat digital networks account for 60-80 percent of productivity gains.

Often, these swelling digital networks goignored, for while voters can easily seepictures of rival Chinese factories a cybernetwork is largely hidden. However, MrArthur calculates that the economicfunctions performed by this digitalnetwork will be equal to the physicaleconomy by 2025; and while his calculationmight be disputed, what is crystal clear isthat this growth is displacing manyhuman workers.

Now, an optimist might insist this doesnot matter. When technology transformed19th century agriculture, displaced workerswere eventually absorbed in the cities.And no US politician today would everdare to suggest that productivity increasesare a bad thing, or that bar codes shouldbe banned. Instead, Exim officials prefer tocelebrate rising productivity as a sign thatAmerican companies are competitive onthe world stage.

But what nobody acknowledges is thatthere is still little sign of how workersbeing displaced by bar codes will bereabsorbed, if, indeed, they can bereabsorbed at all. There is also preciouslittle debate about how America mightcope where the economy seems to begrowing healthily, but where only a smallproportion of the population is employedin good jobs. The phrase “economicredistribution” is almost taboo,particularly in a country where “growth”is the holy grail.

But what investors need to recognise, asBernanke tacitly acknowledged this week,is that everybody now needs to watch farmore than just the GDP data. 2013 mayindeed bring reasonable rates of American“growth”. And Exim officials, for theirpart, will probably watch exports boom.But don’t expect Bernanke to hit his newjobless target too soon. Not unlessCongress starts talking about a ban on barcodes with the same enthusiasm withwhich it keeps sabre-rattling against thoseShanghai sweatshops.

gillian.tett@ft.com

Sugar prices tumble on big Brazil cropBrazil, the world’s biggestexporter.

However, the market hadbeen supported by pros-pects that the Brazilian gov-ernment would increasedomestic gasoline prices,supporting ethanol usage,as well as the possibilitythat rain in the South

By Emiko Terazono

Sugar prices fell to theirlowest in more than twoyears as confirmation of alarge Brazilian cropdepressed the market belowa key technical level.

The benchmark ICE Julyraw sugar fell below 18.66cents a pound, regarded asa technical support levelwhich had held for the pastthree months. It was trad-ing at 18.42 cents perpound, the lowest sinceAugust 2010 and down 4.2per cent from the start ofthe week.

“This is the week that thesugar market has come outof denial,” said JonathanKingsman of Swiss sugarconsultancy Kingsman.

For the past few months,investors have held recordlevels of net bearish posi-tions in sugar due to thelarge forecast supplies from

Sugar price

Source: Thomson Reuters Datastream

Front-month (cents per pound)

Apr Dec201218

19

20

21

22

23

24

25

behind last year’s pace, butit’s still very early,” saidMichael McDougall of bro-kers Newedge in New York.

On the technical front,traders and brokers remainwary of the large bearishpositions on the futuresmarket. A piece of positivenews could trigger a rush tocover, prompting a rally.

Another factor that couldsupport the market, albeittemporarily, is the annualreweighting exercise byindex funds. Institutionalinvestors rebalance theirportfolios in line with theweightings of the indicesthey track, and poorly per-forming commodities in2012 are expected to get aboost from such buying.

Such buying is expectedto include some 30,000 sugarcontracts, but traders saidit may already be pricedinto the market.

www.ft.com/commoditiesTwitter: @ftcommodities

US bundled loan deals soar in yield huntpeak year was 2006, when$97.0bn was raised. Theresurgence has re-estab-lished CLOs as a majorsource of demand for lever-aged loans, floating ratedebt on companies such asthose owned by privateequity firms.

CLOs are similar to othersecuritisation vehicles, inthat they issue multipletranches of debt, includingsome with a triple A rating,whose investors will havefirst claim on cash flowsfrom the underlying loans.

The equity portion, whichonly makes returns whenthe debtholders have beenpaid, has been in strongdemand this year despitebeing the riskiest part ofthe capital structure.

Mike Kessler, marketstrategist at Barclays, saidthat demand for the equitytranche was coming fromprivate equity and businessdevelopment companies,European pension funds,

By Stephen Foleyin New York

Issuance of collateralisedloan obligations, invest-ment vehicles specialisingin corporate debt that cameclose to extinction in thecredit crisis, has surgedpast $50bn in the US thisyear, far outstripping expec-tations.

Several large deals thisweek, including a $415msale by Trimaran Advisersand a first-time issue byboutique firm DFG Invest-ment Advisers, took thetotal issuance to $50.5bn,according to S&P.

CLOs are being touted asone of the last places to findoutsize yields in an era ofultra-low interest rates, andeven the riskiest pieces ofthe deals are finding readybuyers, market participantssay.

This year’s issuance isfour times last year’s level,and the best since 2007. The

and an increasing numberof dedicated CLO invest-ment funds.

“There are more sourcesof equity demand out therebecause more investors aresufficiently confident in theCLO structure to take theriskiest part,” Mr Kesslersaid. “We have seen a grad-ual process whereby market

participants who hadstepped away are slowlycoming back and becomingmore comfortable with spe-cific managers and moreconfident in the health ofthe market.”

The situation in the US isin marked contrast to that

Big appetite

China grain imports

Source: USDA

* Marketing years ending Aug

Million tonnes

0

2

4

6

8

10

12

2002 03 04 05 06 07 08 09 10 11 12

World grain importsTop importers 2011-12 (million tonnes)

0 5 10 15 20 25

JapanEgypt

MexicoEU-27

Saudi ArabiaSouth Korea

ChinaAlgeria

IndonesiaBrazil

Iran

2007-2008*

% change

41,000 5.2m

2011-2012*

2007-2008* 2011-2012*

2007-2008* 2011-2012*

12,658

Corn

% change

49,000 2.9m

5,886

Wheat

% change

445,000 1.6m

264

Rice (milled)

Photos: AFP; Getty Images; DreamstimeFT graphic

Cereal imports into China (metric tonnes)Chinese cerealbuying spreeshakes up grains

Nebraska, a landlockedstate in the middle of theUS, has never felt closer toChina. As more and more ofthe state’s crops areshipped across the Pacificto meet Chinese demand,Nebraska is on the frontline of a structural shift inglobal grain markets: Chinais importing more cerealsthan ever before.

“China represents a hugeexport market . . . [and] agrowing export destina-tion,” says Greg Ibach,Nebraska’s top agriculturalofficial, on a recent visit toBeijing. The state’s cropexports to China have dou-bled during the past fiveyears.

Nebraska is hardly alonein taking note. From Chi-nese officials to global trad-ing house executives, theindustry has quietly startedto acknowledge that Chinais in the midst of a struc-tural shift as it becomes anet importer of grains.

Until recently, China onlyimported small amounts ofpremium-grade rice, minorquantities of wheat andalmost no corn, insisting onself-sufficiency. That ischanging: already theworld’s biggest importer ofsoyabeans, China is addingcorn, wheat, barley and riceto its shopping list.

The shift could have pro-found implications for glo-bal food markets becauseChina’s total demand forgrains is vast relative to thesize of globally traded mar-kets.

“For China to lose even alittle bit of self-sufficiencymeans a lot on the tradefront,” says Jean-Yves

Chow, analyst at Rabobank,one of the largest lenders tothe agribusiness industry.“Even if China imports 5per cent of their corn, thatis equivalent to one-third orone-half of the corn trade inthe world.”

Chinese grains importshave tripled to date thisyear, rising to 13.4m tonnesfrom January to November– up from 4.5m tonnes dur-ing the same period of 2011.The spree has made Beijingthe world’s second-largestimporter of rice and barley,a top 10 buyer of corn and atop 20 of wheat.

The important drivers aredietary changes as moreChinese move to cities,where they typically con-sume more meat, requiringmore animal feed crops.

The shift has intensifiedstrain on China’s agricul-tural sector, already trying

to feed one-fifth of theworld’s population withscarce farmland and water.

Ever since China enteredits phase of high economicgrowth more than threedecades ago, it has facedapocalyptic warnings thatits increasing demand forfood would lead to short-ages worldwide. By andlarge, these warnings haveturned out to be wide of themark as Beijing injected bil-lions of dollars into its agri-cultural sector to maintainself-sufficiency in threechief crops: corn, rice andwheat.

China still has an officialpolicy that mandates 95 percent self-sufficiency inthose crops – a policyknown as the “red line” –but recent comments sug-gest that the insistence on

self-sufficiency is waning.Chen Xiwen, a top Chi-

nese agricultural official,recognised higher importsof grains and oilseedswould be inevitable. “Mak-ing full use of internationalresources and internationalmarkets has become verynecessary,” he said at a Bei-jing conference. “China’sagricultural output hasbeen rising – but demandhas been increasing evenfaster.”

The world’s top tradinghouses are jockeying forposition to profit. LouisDreyfus Commodities, oneof the largest food traders,describes the surge in Chi-nese corn imports as a“game-changing move”.

Executives say Marubeni,the Japanese trading house,is in a leading position toprofit from Chinese cerealimports. The company thisyear bought Gavilon, a pri-vately held US grain trader,for $5.3bn, including debt,with the aim of supplyingcorn to China. The acquisi-tion complements a deal in2009 with Sinograin, thestate-owned company incharge of China’s strategicreserve of food commodi-ties, for “comprehensivecollaboration”.

Others are also preparing.Archer Daniels Midland,the New York-listed trader,this year launched an unso-licited A$2.8bn (US$2.9bn)bid for Australian-basedGrainCorp, one of theremaining independentwheat and barley traders inthe Asia-Pacific region.Patricia A. Woertz, chiefexecutive at ADM, toldinvestors recently her aimwas to “connect Australia’sproductive growers with ris-ing global demand for cropsand food, particularly inAsia”.

Cargill, Bunge, LouisDreyfus Commodities,Noble Group and Glencoreare also investing in busi-nesses that will be moreprofitable if China were toimport large amounts ofwheat, barley, rice and cornin the next few years.

News analysisThe country’sgrains imports havetripled and talk ofself­sufficiency hasbecome muted,write Leslie Hookand Javier Blas

American country duringthe middle of the year hadcut production.

The bears were vindicatedas Unica, the Brazilianindustry association, saidthe production of sugar atthe end of November was32.9m tonnes, up 6 per centfrom a year before. Sincemost analysts were expect-ing 30-33m tonnes for thewhole year, the announce-ment sent prices tumbling.

On fundamental supplyand demand news, inves-tors are now focused on thecrops in India and Thailand,which are large sugar pro-ducers.

The prospects for India,which had not seen enoughrain at the start of the mon-soon season, are expected tobe better than initially fore-cast, although there isuncertainty about the Thaiproduction numbers.

“The latest news out ofThailand is that sugar pro-duction is 8.5 per cent

in Europe, where there hasbeen no new CLO issuancesince the financial crisis.

Leveraged loans for pur-chase by CLOs are inshorter supply in Europebecause of the weakness ofthe banking system. Also,the European Union intro-duced rules mandating thatCLO issuers keep a portionof the underlying loans ontheir own books, changingthe economics for issuers.

RBS is predicting that thesurge in issuance is yet topeak, and that next yearcould see $60bn-$65bn ofnew deals coming to marketin the US, and at tighterprices that reflect thestrong investor interest.“With investors hungry foryield, CLO spreads in thesecondary market tightenedthroughout the capitalstack, with robust demandfor mezzanine notes andequity,” in 2012, analystsRichard Hill and KennethKroszner wrote.

‘CLO spreads in thesecondary markettightenedthroughout thecapital stack. . .’

‘China’s agriculturaloutput has beenrising – butdemand hasbeen increasingeven faster’

COMMODITIES

GillianTettINSIGHT

By Arash Massoudiin New York

Nasdaq cancelled dozen oftrades in nine of WallStreet’s biggest stocks,including Goldman SachsCitigroup and Hewlett-Pack-ard, after shares in the com-panies fluctuated wildly inpre-market trading.

The exchange operatorsaid it would unilaterallycancel all trades in thestocks that were greaterthan 10 per cent away fromthe previous day’s closingprice.

All the trades in question– which were deemed“clearly erroneous” – tookplace on its exchange andoccurred in the secondsbefore the market formallyopened yesterday.

The cancellation high-lights what has become afrequent feature of modernUS markets, as the rise ofautomated and high-fre-quency trading increasesthe likelihood of mistakenorders.

It also comes as regula-tors and securities industryofficials have focused onthe issue of formerly not-for-profit stock exchangeswhich are allowed to oper-ate under their own set ofrules.

Nasdaq declined to com-ment beyond the tradealerts which it issued.

The erroneous trades thatwere cancelled includedsome in Goldman Sachs,which traded around $118during market hours inNew York yesterday, exe-cuted at $96 during the 60-second window before themarket opened, accordingto data from Nanex, themarket research firm.

Hewlett-Packard sharestraded at $3, some 80 percent below their price.Wells Fargo, AT&T, KrogerCo, Ventas Inc, WesternUnion and Sprint Nextelwere also involved in thecancellations.

The cancellations cameafter Nasdaq alerted themarket that it was investi-gating “clearly erroneoustransactions”.

www.ft.com/tradingroom

Nasdaqcancelstrades inbig stocks

Economic functions of thedigital network will equal thephysical economy by 2025

DECEMBER 14 2012 Section:Markets Time: 13/12/2012 - 19:17 User: raffertye Page Name: LSE USA, Part,Page,Edition: EUR, 24, 1

FINANCIAL TIMES FRIDAY DECEMBER 14 2012 ★ 25

MARKETS & INVESTING

Central banksforce rethink offorex strategies

“This year sucked,” is theverdict on the currencymarkets in 2012 from onebank’s head forex trader.Investors are frustrated,too.

Few currency hedgefunds are shouting theirreturns from the rooftops.An index of forex managerscreated by Parker Globalshows currency funds havemade less than 1 per centon average so far this year.

Central bank interventionhas been blamed forcreat-ing an environment wherevolatility is at its lowestlevel in five years andtrends fail to get off theground. As a result, tradi-tional methods for makingmoney have suffered. Trad-ing interest rate differen-tials is harder when inter-est rates are close to zeroacross the world’s largestand most liquid currencies– the dollar, the euro, theyen, the Swiss franc andthe pound.

Constant interference,too, from politicians andcentral banks has tended tocut short any marketmomentum and damagetrend following models,another popular strategy.

Even European CentralBank president MarioDraghi’s promise to do“whatever it takes” to savethe euro in July was notpositive for currency inves-tors, because it reduceddownward momentum in

the single currency, whilethe eurozone’s sluggisheconomy capped the upside.

“It’s been like rollingstones uphill,” says TroyRohrbaugh, global head offorex and rates trading atJPMorgan. “You had lowinterest rates, carry tradesnot appealing and the ECBconvincing markets that itwould retain stability. Thecombination has made for amuch more challengingmarket in foreignexchange.”

Stephen Jen, head of SLJMacro Partners, says: “It’sdefinitely trickier. It’s notso straightforward to gener-ate alpha.” His fund hasbeen resorting to shorterterm trading, using a dis-cretionary approach to exit

positions quickly before acentral bank kills a trend.

“The duration of the posi-tions that are held not justby us but others as well isshorter than before – youcannot buy and hold, it’svery, very difficult,” hesays.

Tail risk hedgesexpressed in the currencymarket have also failed tomake much money thisyear – for example, shortingthe euro against the Swissfranc as a way of protectingagainst a break-up of thesingle currency. Manyinvestors lost moneybecause they assumed themarkets would be worsethan they were.

Shorting volatility wouldhave been one of the most

non whereby all assetclasses are highly corre-lated with each other,which is throwing up someopportunities.

“As RoRo weakened thisyear, some underlying fun-damental changes were ableto play out. Last year, wewould probably have beenswamped in the generalRoRo sentiment,” says MrSafvenblad.

Currency managers main-tain forex can still make

At the risk of agitating goldbugs, must they accept thata major prop for the bullionprice is withering away?(Dons protective headgear,assumes foetal position).

Federal Reservequantitative easing has longbeen cited as an importantsupport for precious metalsbecause it is seen asweakening the dollar andraising inflation expectations– both traditionally goldbullish.

But gold has greeted thelatest Fed extension to QEwith contempt, yesterdaydropping back below $1,700an ounce. Indeed, the priceis more than $30 belowwhere it was when the open­ended QE3 was revealed inmid­September – though,granted, gold had risensharply in the weeks before,partly in anticipation.

The problem is the dollarindex’s correlation to QEis weakening as the yenbecomes more fragile. And,as Strategas Research notes,US “break­even” inflationexpectations in the past havebeen pretty responsive to theQE programmes, but of latehave shown diminishingreturns from Fed actions.

Gold has tracked the USfive­year break­even closely,so if QE can’t spark inflationfretting, then the gold pricelooks likely to struggle.

jamie.chisholm@ft.comRolling global overview at:www.ft.com/markets

News analysisPolicymakers’actions, interestrates and lowvolatility squeezedprofits this year,writes Alice Ross

money when other assetclasses are suffering, view-ing the asset class as a“shock absorber” for otherparts of the economy. Forextraders had a hugely profit-able year in 2008 after thecollapse of Lehman Broth-ers, when investors tried toescape the meltdown inequities and fixed incomeby trading more liquid cur-rencies instead. Andbecause currencies aretraded in pairs, one side is

always going up. “Is fx asan asset class in danger dueto these miserable returns?The answer is no,” says BobSavage, chief executive ofTrack.com, a researchgroup recently acquired byFX Concepts. “When disas-ter strikes, it outperforms.”

Currency investors arehoping for more differentia-tion between currenciesnext year. Many havepinned their colours to theyen mast, with shorting the

currency one of the mostpopular trades in the forexmarket in recent weeks.

But opinions are dividedover whether next year willbe a better one for currencyinvestors. Mr Jen says: “It’salways safer to expect itwill be very challenging.”

Or, as Mr Rohrbaugh putsit: “We’re prepared forsomething slightly worse,expecting something simi-lar but hoping for some-thing better.”

...as currency volatility declines steadily

Sources: Parker Global Strategies; Thomson Reuters Datastream

JPMorgan G7 volatility index

Jan Dec20127

8

9

10

11

12

Currency managers struggle to make high returns...Parker Global Currencies Managers index (rebased)

Dec2011

Nov201299.5

100.0

100.5

101.0

101.5

102.0

102.5

South Korea: stock market still on a rollbeyondbrics, the FT’s emerging markets hub

Despite North Korea’sgrowing military threat, SouthKorean investors appear tobe full of euphoria as itsstock market hit the highestlevel in two and a half yearson strong foreign buying,writes Song Jung­a.

The benchmark Kospistock index closed above thepsychologically important2,000 level yesterday, asforeign investors were netbuyers for 11 consecutivedays, purchasing a netWon2.3tn ($2.1bn) of Koreanshares. The index has gainednearly 10 per cent so far thisyear, driven by SamsungElectronics, which hasjumped 45 per cent to arecord high of Won1.5m.

Not even North Korea’ssuccessful missile launchcould stop the Kospi’suptrend. The Kospi gained0.2 per cent on Wednesdayand extended gainsyesterday, up 1.38 per centto 2,002.77, after the USFederal Reserve ramped upmonetary stimulus.

Most strategists in Seoulare quite bullish about themarket’s outlook as the Fedmove is expected to increasefund flows into Asia’s fourth­largest economy. Theypredict that the Kospi will hitthe 2,200­2,400 level nextyear, as exports are likely toincrease on the back of theeconomic recovery in the US

and China, the country’smain export destinations.

“Korea is a high­betacountry. So it tends tooutperform the globalmarkets when the economiccycle turns up,” saysGoohoon Kwon, chief Koreastrategist at Goldman Sachs,targeting 2,300 points forthe index next year.

The Bank of Korea saidyesterday that the economywould show a “modestrecovery centring aroundexports” in the comingmonths, as exports increased3.9 per cent in November,following a 1.1 per cent risein the previous month. Thebank held interest ratessteady at 2.75 per cent.

Chanik Park, strategist atBarclays, predicts that theKospi will go up to 2,200next year, as indexheavyweight SamsungElectronics still has a 15 percent upside potential.

He notes that valuations ofKorean companies remaintoo low, with the Kospi’sprice to earnings ratio at just8.4, which is about 25 percent cheaper than the Asiaex­Japan average.

The market consensus isthat Korean companies’earnings will increase bymore than 20 per cent nextyear although the twostrategists forecast a lowdouble­digit increase.

Still, risks remain for Koreainvestors. “A furtherstrengthening of the won andthe continued debate oneconomic democratisationwill likely be key challengesfor Korea in the year ahead,”warns Mr Park.

The Korean wonstrengthened to a 15­monthhigh against the dollaryesterday, makinggovernment officials worriedabout Korean exporters’ pricecompetitiveness abroad whilethe Japanese yen weakens.

However, analysts saycompanies can weather wonappreciation due to improvedbrand competitiveness.

www.ft.com/beyondbrics

By Ben McLannahanin Tokyo

ING, the Dutch bancas-surer, has capped a recordyear for Japanese debt mar-kets by completing the big-gest ever fundraising by aEuropean issuer, seizing onultra-loose credit conditionscreated by the Bank ofJapan.

The Y175bn ($2.1bn) saleyesterday of three-yearbonds by ING brings thetotal raised in the country’spublic debt markets thisyear to $310bn, up 6 percent from 2011’s formerrecord haul, according toDealogic.

Companies and financialinstitutions from Japan andelsewhere have flocked to

Tokyo to take advantage ofstable and cheap funding,lured in part by the centralbank’s steady programme ofpurchases of domestic cor-porate bonds approachingmaturity.

Those purchases, whichhave doubled over thecourse of the year to Y3.1tn,have helped to drive downinterest rates for yen bor-rowers of all descriptions,say analysts.

“The BoJ is doing what itsaid it would do, which is toallow companies to fund atlower costs, but it is to theconsternation of institu-tional investors who aretrying to show some kind ofreturn,” said Kazuhide Tan-aka, head of long-term fund-ing (Japan) at Rabobank,

the Dutch co-operativelender, which sold Y270bnof bonds this year.

For the fixed-rate portionof ING’s bond sale, the bankpaid 70 basis points overthe cost of swapping fixedfor floating rate money,which was a significantimprovement over asmaller, shorter-tenor salein April. Its deal lifted thetotal sum raised by non-Japanese issuers this yearto $25.5bn – also a record.

ING says it will swap itsyen into dollars, for generalcorporate purposes. “Evenif the size were halved, it’dstill be a good deal,” saidDennis Haring, ING’s headof long term funding.

Bankers say that the bal-ance of supply and demand

in Japan’s debt markets hasbeen disturbed by the with-drawal of electric powercompanies, which accountfor about a quarter ofJapan’s Y60tn in outstand-ing corporate bonds.

Since the Fukushimanuclear disaster of March2011, issuance from utilitieshas dwindled to about one-tenth of pre-crisis levels,amid uncertainty overJapan’s future energy pol-icy.

That is forcing cash-richinvestors into acceptinglower coupons from issuersfilling those gaps. “Theyneed to keep investing,”said Kenji Setogawa, Tokyo-based head of debt syndi-cate at Barclays, joint book-runner on the ING deal.

ING fundraising caps recordyear for Japan’s debt market

Jan Dec20121750

1800

1850

1900

1950

2000

2050

South Korean equities

Source: Thomson Reuters Datastream

Kospi index

profitable strategies thisyear. Yet it was one of theleast popular, in partbecause the risks of a Greekexit from the eurozone stillseemed so high.

Still, despite the gloom,some investors have man-aged to make money. Likemany others, FX Concepts,one of the world’s bestknown currency hedgefunds, has resorted to short-er-term trading. In particu-lar, it has found that bet-ting that trends will not besustained has been themore profitable strategy –what it calls shorter-termmean reversion strategies.

Its global currency fund,with $3bn under manage-ment, is up 2 per cent.“We’re outperforming amiserable business,” saysJohn Taylor, chairman andchief executive. “We thinkwe’ve done a spectacularjob this year for eking out a2 per cent profit.”

Harmonic Capital, a sys-tematic currency hedgefund in London with morethan $900m under manage-ment, has made 20 per centthis year.

“We’ve had a great year,”says Patrik Safvenblad,investment partner. Thefund has moved away fromtrying to make money inthe lacklustre major curren-cies and has instead beentrading regional emergingmarket currencies againsteach other as their econo-mies slow at different rates.Shorting the Brazilian realagainst the Chilean andMexican peso has been aprofitable example of thisstrategy, which Mr Safven-blad believes will continueto make money next year.

Currency investors alsosay they have noticed aweakening in the risk on,risk off effect, a phenome-

Trading postJamie Chisholm

Source: Bloomberg

Jan Dec20121.5

2.0

2.5

1500

1600

1700

1800

US 5-yearbreakevenrate (%)

Gold price($ per troy

ounce)

More news atFT.com

●Australian dollarSome central bankers areencouraging the RBA toconsider intervention toweaken its currencywww.ft.com/alphaville

●Egyptian riskMarkets have been volatiledue to political turmoil and,with arguments ragingover a new constitution, a$4.8bn IMF loan is on holdwww.ft.com/authersnote

●Arab banking & financeFinancial services in Arabcountries may not alwaysbe straightforward butappear more inviting thanin the westwww.ft.com/reports

●Economic calendarOnline data diarywww.ft.com/econdiary

●Follow us on Twitter:@FTAlphaville

●Markets LiveRead Paul Murphy andBryce Elder every weekdayfrom 11am

“We think we’vedone a spectacularjob this year foreking out a 2 percent profit’

ECB president Mario Draghi’s promise to save the euro was not positive for currency investors AFP

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DECEMBER 14 2012 Section:Markets Time: 13/12/2012 - 19:11 User: raffertye Page Name: ICNCOMMS USA, Part,Page,Edition: EUR, 25, 1

26 ★ †

MARKETSFriday December 14 2012

Source: Thomson Reuters Datastream

Asian equitiesFTSE All-Word Asia Pacific index

Italian government bonds10-year yield (%)

Nov Dec20124.4

4.5

4.6

4.7

4.8

4.9

5.0

Jun Dec2012215

220

225

230

235

240

245

250

◄ Italian benchmarkyields recovered fromMonday’s politics­inducedvolatility to trade flat intight ranges. Yields havedropped nearly 30 basispoints since highs of 4.9per cent early this week

►Asian stocks extendedtheir longest winningstreak for more than threeyears to an 11th straightsession, up 0.3 per centon upbeat reaction to USFederal Reserve moves

Stocks retreat in wake of Fed’s new easing

By Jamie Chisholm

US and European stockmarkets retreated whileAsian equities rose for an11th consecutive session asglobal traders absorbed thelatest efforts by the USFederal Reserve to stimu-late the world’s biggesteconomy.

The FTSE Eurofirst 300fell 0.4 per cent and WallStreet’s S&P 500 lost 0.6 percent, receiving little benefitfrom a rise in US retailsales last month and newsthat weekly jobless claimsfell more than expected.

The FTSE Asia Pacificindex added 0.3 per cent,taking its gains since theend of November to 3.5 percent.

That left the FTSE All-World index down 0.3 percent as wariness about theUS fiscal cliff kept in checkany more seasonal “riskasset” gains that had takenthe global benchmark closeto 16-month highs.

Illustrating the tentativemood were the signals sentby traditional havens andgrowth-focused productswith the dollar index up 0.2per cent and copper down1.1 per cent to $3.67 apound. Gold slipped $16 to$1,696 an ounce.

The main talking point inthe markets was the Fed’sdecision on Wednesday tobolster its asset buying pro-gramme by another $45bn amonth, a move that com-

pensated for the end of its“Operation Twist” pur-chases.

US sovereign bond pricesfell, pushing yields higheras investors focused on the

eventual boost to the econ-omy the Fed’s actions werelikely to have rather thanthe support to the sectorlikely to be provided by thecentral bank’s bond buying.

The 10-year Treasuryyield rose 2 basis points to1.72 per cent after earlierreaching five-week highs.

The yield spread betweentwo-year Treasuries and

“long” bonds was about 270basis points, the widestsince October and reflectinga steepening of the yieldcurve, which in turn signalshopes for faster economicgrowth in the future.

Analysts at Barclays saidthe Fed’s actions were “partof a broader effort by globalcentral banks that shouldcontain large negative tailrisks and continue toencourage a shift in posi-tioning from increasinglyovervalued ‘low risk assets’into somewhat riskier assetclasses”.

But more bearish marketanalysts argued that thetepid reaction to the Fed’smove highlighted howinvestors had already dis-counted the action and werereluctant to push stockbarometers beyond currentmulti-month highs untilthere was more clarity on

the US fiscal cliff issue. Thelatest comments from bothsides on Capitol Hill did notsuggest that progress wasbeing made on a deal.

The Fed announcementconcluded its business forthe year but traders stillhave one more major cen-tral bank event left for 2012.

The Bank of Japan willfollow up this weekend’snational elections with theconclusion of its policymeeting on Thursday.

The yen has been weaken-ing in anticipation that theBoJ will be emboldened bythe expected new govern-ment to increase monetaryeasing.

The yen initially softenedagainst the dollar to Y83.67,its weakest in nine months.This provided a boost toJapanese export-sensitiveequities, pushing the Nikkei225 Average up 1.7 per cent,

breaching 9,700 for the firsttime since April.

However, the yen laterpared those losses in Euro-pean dealing to trade atY83.54.

A move late in the trad-ing day by Standard &Poor’s to put the UK onnegative watch from stablecaused a sell-off in sterling,which lost 0.3 per cent to$1.6095 against the dollarafter the announcement.

The single currency bene-fited from being out of thelimelight.

European leaders agreedthe latest instalment ofGreece’s bailout funds at asummit yesterday whileRome’s 10-year borrowingcosts, which spiked to 4.9per cent at the start of theweek, were back down to4.64 per cent.

The euro traded flat at$1.3072 against the dollar.

GLOBAL OVERVIEW

US sovereign bondprices decline

S&P move triggerssell­off in sterling

Latest

Source: Thomson Reuters Datastream Markets updated at www.ft.com/markets

FTSE Eurofirst 300 indexFTSE 100 indexS&P 500 index Nikkei 225 Average

Nov Dec2012 Nov Dec2012 Nov Dec2012 Nov Dec20121340

1360

1380

1400

1420

1440

5600

5700

5800

5900

6000

1060

1080

1100

1120

1140

8800

9000

9200

9400

9600

9800

Changeon day-0.25%

Changeon day-0.27%

Changeon day-0.42%

Changeon day

+1.68%

Pound hurt by S&P warningCURRENCIES

By Alice Rossand David Keohane

Sterling fell sharply afterStandard & Poor’s becamethe latest rating agency toput the UK on negativewatch from stable, implyinga one-third chance of adowngrade over the nexttwo years if the UK’s eco-nomic and fiscal perform-ances weaken beyond S&P’scurrent expectations.

Sterling lost 0.3 per centagainst the dollar to $1.6095and fell a similar amountagainst the euro to £0.8117.

The US dollar was mixedas risk appetite improvedon better US economic data,while plans by the FederalReserve to ease monetarypolicy put pressure on thecurrency.

The euro was flat againstthe dollar as a summit of

European Union leaders dis-cussed the longer termhealth of the eurozone,greater fiscal union andpossible treaty changes.

The single currencygained early ground aftereurozone finance ministersagreed on steps to appoint acommon banking supervi-sor and bring more regula-tion to Europe’s banks.

The dollar then strength-ened as traders said someinvestors were taking prof-its after steep falls in theUS currency on Wednesdayafter the Fed said it wouldease monetary policy fur-ther. The euro traded flatagainst the greenback at$1.3066.

The single currency fell0.3 per cent to SFr1.2082against the Swiss francafter the Swiss NationalBank made no changes toits policy of keeping theeuro’s exchange rate

against the franc at orabove SFr1.20, as expected,and stuck with its interestrate targets.

“Following the large forexreserve accumulation dueto record forex interventionto defend the floor in thesecond quarter of 2012, theSNB would not want themarket to test the credibil-ity of a higher floor againsta gradually improvinggrowth backdrop,” said ana-lysts at Credit Suisse.

The Japanese yen hit afresh nine-month lowagainst the dollar of Y83.67ahead of elections that areexpected to usher in a newgovernment with a tougherstance on yen weakness.Analysts said the Fed’sfresh monetary easingshould also weaken the yenas it tends to be fall as riskappetite strengthens.

www.ft.com/currencies

● US equitiesThe S&P 500 index was oncourse to record its firstlosing session in morethan a week as investorsentiment turned moresombre in the wake of theprevious day’s meeting of theUS Federal Reserve

● UK equitiesThe FTSE 100 index slipped0.3 per cent in a broadlyquieter trading session as theLondon benchmark broke asix­day winning streak. Butthe index is still holding gainsof 5 per cent over the pastmonth as volumes taper off

● European equitiesThe FTSE Eurofirst 300slipped back from 18­monthhighs to record its firstretreat in nine tradingsessions. The region’s stockslost 0.4 per cent as Germanstocks were weighed byDeutsche Bank’s setbacks

● Asian equitiesTokyo’s Nikkei 225 Averagesurged above the 9,700 levelfor the first time in eightmonths, led by strength forexporters as the yen fell to amulti­month low. TheJapanese benchmark indexgained 1.7 per cent

Markets update

Apple turns sour as Google raisespressure with launch of maps appBy Arash Massoudiin New York

US equities were on pace torecord their first losing ses-sion in more than a week asstocks lost momentum aday after the FederalReserve said it wouldextend exceptionally accom-modative monetary policymeasures.

The S&P 500 dropped 0.6per cent to 1,420.06 as itextended losses throughoutyesterday’s morning ses-sion.

The Nasdaq Compositeindex lost 0.8 per cent to2,990.42. Apple, the heaviestweighted stock on the techheavy benchmark, was 1.8per cent lower at $529.12.The company faced addi-tional competitive pressuresyesterday from Google,which released its ownmaps application for Appledevices amid criticism ofthe iPhone maker’s soft-ware.

Analysts at Credit Suisse,taking a broader look atGoogle’s prospects, said

they believed that the com-pany was set for a multi-year period of sustainedgrowth, citing growing con-fidence in its mobile divi-sion.

Shares in the company,which were up 0.7 per centto $702.24, have underper-formed the S&P 500 in 2012.Credit Suisse analysts said:“We believe Google shareshave essentially traded side-ways throughout this yeargiven uncertainty surround-ing the evolution of thesearch business from both arevenue growth and marginstandpoint, with the compa-nies limited disclosure

around its now multiplebusiness lines further com-plicating the issue.”

Investors had been hop-ing that equities would pro-long a six-day streak of pos-itive gains, which extendedinto Wednesday even asFed chairman Ben Bern-anke warned that uncer-tainty from budgetary nego-tiations was hurting the USeconomy.

Sam Stovall, chief equitystrategist at S&P CapitalIQ, said: “Many don’tbelieve this rally has legs,which we think is very bull-ish from a contrarian view-point. It implies to us that

many are underinvested inequities and could later addfuel to the advance shouldthey capitulate.”

Shares in Facebook,which was added to theNasdaq-100 this week, rose2.3 per cent to $28.22 asanother lock-up on insiderstock selling from its Mayinitial public offering wasset to expire today. Theshares, which are stillbelow their IPO price of $38,have risen 42 per cent overthe past month.

Best Buy, the consumerelectronics retailer, jumped15.5 per cent to $14.07. Areport in a local Minnesotapaper, where the companyis headquartered, saidfounder Richard Schulzewould make a formal takeo-ver offer for the companythis week.

The Dow Jones IndustrialAverage fell 0.6 per cent to13,171.27. Caterpillar, theearthmoving equipmentmaker, was 0.2 per cent upat $88.11 after it announcedthat it planned to acceleratethe payout of its first-quar-ter dividend to before thestart of next year.

Walmart shares were 0.4per cent higher at $69.21after the world’s largestretailer by revenues wasreportedly in talks to buy acontrolling stake in Tur-key’s biggest retailer bysales.

Energy stocks were theworst performing. The S&P500 energy sector index lost1.1 per cent as benchmarkcrude prices fell on the day.

Nabors Industries, theland drilling contractor,declined 5.3 per cent to$13.76 after its shares weredowngraded by analysts atJefferies.

Phillips 66 fell 3.3 percent to $51.32 and Cabot Oil& Gas Corp moved 2.9 percent lower to $47.20.

A host of economic datareleased provided a mixedforecast for the US econ-omy. Weekly jobless claimssaw a steep fall as fewerAmericans claimed first-time unemployment insur-ance. Meanwhile, wholesaleprices in the US fell fasterthan expected last monthdue to a drop in energycosts. Retail sales showed aslight pick-up last month.

WALL STREET

Source: Thomson Reuters Datastream

US energy equitiesS&P 500 index

Jan Dec2012460480500520540560580

Key indicators

Day’sIndices Close change

S & P 500 1420.68 -7.80

DJ Industrials 13191.25 -54.20

Nasdaq Comp 2992.61 -21.20

Russell 2000 826.22 -3.17

VIX 16.27 +0.32

US 10 yr Treas Bd 1.73 +0.03

US 2 yr Treas Bd 0.25 +0

By Bryce Elder

The FTSE 100 broke a six-day winning streak yester-day, but Tullow Oil outper-formed the weak trend.

The oil explorer extendeda rally from a 15-month lowhit in the wake of a drywell offshore Ghana earlierthis week. Brokers includ-ing Merrill Lynch arguedthat investors had overre-acted to the setback.

Tullow closed 2.9 per centhigher at £12.16. Merrill hada £20 price target on thestock, while Exane BNPParibas valued it at £14.40.

A quiet wider market sentthe FTSE 100 lower by 16.24points or 0.3 per cent at5,929.61.

John Wood Group lost 4.6per cent to 733.5p after guid-ance pointing to a moremuted 2013 outlook over-shadowed its year-end trad-ing update.

AstraZeneca dropped 2.8per cent to £29.59 on disap-pointing trial results for fos-tamatinib, a rheumatoidarthritis pill

Motor insurer AdmiralGroup rose 0.6 per cent to£11.53 and Direct Line wasup 1.3 per cent to 211.8pafter the Ministry of Justiceproposed moving whiplash

cases to the small claimscourts.

Man Group added 4.5 percent to 81.1p on a retread ofspeculation that the hedgefund manager was a takeo-ver target following theretirement this week of itschief executive, PeterClarke.

Centamin slumped 47.4per cent to 27.7p after warn-ing that the Egyptian Gen-eral Petroleum Corporationhad cut off its diesel supplyover a disputed fuel subsidybill.

Centamin, which isembroiled in a court battleover the validity of its oper-ating licence, also warnedthat customs officials wereblocking a gold shipment,meaning it was running outof working capital and hadto suspend production.

Canaccord Genuity put afloor valuation on Cen-tamin equivalent to its cashand bullion on hand at$174m, or 10p a share.

Miner KenmareResources faded 3.6 per centto 30.1p after Australianpeer Iluka warned of weakend-market demand andpricing for mineral sands.

Chip designer Imagina-tion Technologies slipped 4per cent to 408p as earningsdowngrades followed itsinterim results on Wednes-day. Liberum analysts wor-ried that the group maymove into net debt or con-sider a share issue to fundits bid battle with Ceva tobuy MIPS.

Oil explorer Cairn Energyfell 0.9 per cent to 260.9pafter Bill Gammell and hiswife sold more than half oftheir shares for £1.7m.

Supergroup rallied 6.6 percent to 593.5p, havingdropped sharply on Wednes-day after retail sales disap-pointed. Panmure Gordonsaid after that it was keep-ing earnings forecastsunchanged and noted thecompany’s “long list of self-help opportunities.”

A relief rally carriedNational Express 4.3 percent higher to 187.9p afterthe bus group said it was ontrack to meet expectations.

EUROPE

Tullow Oil bucks weak trendto rally from 15­month lowLONDON

Man Group

Source: Thomson Reuters Datastream

Share price (pence)

Jan Dec201250

100

150

Deutsche Bank fallsafter prof it alert

man Sachs wrote, maintain-ing their “neutral” rating.

Bank of America MerrillLynch kept its “buy” ratingon the shares but warnedthe disposal would cost Soc-Gen a 5 per cent fall in itsestimated 2013 earnings anda 4 per cent fall in expected2014 earnings.

The shares slid 1.3 percent to €29.13.

Regulatory filings show-ing Gemalto’s chief execu-tive sold most of his stakein the smart card makerappeared to unsettle inves-tors.

The shares fell 3.2 percent to €72.59. They haverallied 93 per cent this yearand the company will jointhe blue-chip CAC40 indexnext month.

Renault was rewarded forselling its remaining 6.5 percent stake in Volvo. Inves-tors sent its shares climb-ing 1.5 per cent to €40.22.

“This €1.5bn sale will ena-ble Renault to report a netcash position at end 2012,”Fitch wrote in a note.

UBS cut its target priceon the shares to €49 with a“buy” rating, while Natixis,which also has a “buy” rat-ing, raised its target to €50.

Volvo’s preference sharesslid 4.3 per cent to SKr91.75.

The FTSE Eurofirst 300fell 0.4 per cent to 1,134.86.

By Alexandra Stevenson

Investors turned their focusto some of Europe’s biggestbanks.

Deutsche Bank disap-pointed after the Germanlender said fourth-quarterprofits would suffer follow-ing a series of one-offcharges.

Restructuring costs andcharges related to its Dutchbusiness would “have a sig-nificant negative impact onthe bank’s earnings”, itsaid. Shares in Germany’sflagship bank fell 2.7 percent to €33.35.

UBS suffered after itemerged that the Swissbank faced a fine that couldtop $1bn in order to settleallegations that it riggedthe Libor benchmark inter-est rate. Its shares slid 1.1per cent to SFr15.08.

Analysts reacted toSociété Générale’s $2bn saleof a majority stake inNSGB, its Egyptian subsidi-ary, to Qatar NationalBank.

Natixis raised its targeton the lender’s shares to€34 with a “buy” rating.Deutsche Bank raised itsprice target to €28.

“Less risk, but also lessreward,” analysts at Gold-

DECEMBER 14 2012 Section:Markets Time: 13/12/2012 - 19:17 User: raffertye Page Name: WSM2 ASI, Part,Page,Edition: EUR, 26, 1