EUROPE Friday December 21 2012

World Business Newspaper

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

5 1

Dec 20 prev %chg

S&P 500 1436.93 1435.81 +0.08

Nasdaq Comp 3039.76 3044.36 -0.15

Dow Jones Ind 13246.25 13251.97 -0.04

FTSEurofirst 300 1142.8 1142.13 +0.06

Euro Stoxx 50 2658.3 2654.69 +0.14

FTSE 100 5958.34 5961.59 -0.05

FTSE All-Share UK 3121.27 3122.32 -0.03

CAC 40 3666.73 3664.59 +0.06

Xetra Dax 7672.1 7668.5 +0.05

Nikkei 10039.33 10160.4 -1.19

Hang Seng 22659.78 22623.37 +0.16

FTSE All World $ (u) 225.28 -

COMMODITIES

Dec 20 prev chg

Oil WTI $ Feb 89.98 89.98 -

Oil Brent $ Feb 110.36 110.36 -

Gold $ 1,666.95 1,670.15 -3.21

price yield chg

US Gov 10 yr 98.59 1.78 -0.03

UK Gov 10 yr 98.37 1.93 -0.04

Ger Gov 10 yr 100.76 1.42 -0.02

Jpn Gov 10 yr 99.30 0.78 -0.01

US Gov 30 yr 95.81 2.96 -0.03

Ger Gov 2 yr 100.00 0.00 0.01

Dec 20 prev chg

Fed Funds Eff 0.17 0.17 -

US 3m Bills 0.06 0.06 -0.01

Euro Libor 3m 0.12 0.12 -

UK 3m 0.57 0.57 -

Prices are latest for edition

Dec 20 prev

$ per € 1.324 1.326

$ per £ 1.626 1.627

£ per € 0.814 0.815

¥ per $ 84.4 84.3

¥ per £ 137.2 137.1

$ index 80.8 80.7

SFr per € 1.207 1.209

Dec 20 prev

€ per $ 0.755 0.754

£ per $ 0.615 0.615

€ per £ 1.228 1.227

¥ per € 111.7 111.7

£ index 83.8 83.7

€ index 91.34 91.49

SFr per £ 1.483 1.484

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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US banks face sharprise in loan loss coverThe US accounting standardssetter unveiled tough rulesto increase the amount ofmoney banks must set asideto cover soured loans andbonds – with its chairmanhinting reserves might haveto rise 50 per cent. Page 13

Oligarch jail term cutRussian oligarch MikhailKhodorkovsky, an oppositionfigure jailed on tax andfraud charges after hechallenged the Kremlin, willbe freed in 2014 – two yearsearlier than expected – in anact of unprecedentedleniency. Page 5

East cools on euroEnthusiasm for the euro iscooling among the EU’snewest members in easternEurope, with Latvia’s primeminister warning that hiscitizens were turning againstthe single currency. Page 5

US growth boostThe US economy grew3.1 per cent in the thirdquarter, revised figures show– ahead of forecasts andputting it in a strongerposition to withstand anyfiscal cliff shocks. Page 3

BoJ extends stimulusThe Bank of Japan steppedup monetary easing with aY10tn rise in its asset-buyingprogramme and signalledthat it could adopt a higherinflation goal as requestedby prime minister-electShinzo Abe. Page 2; PeterTasker, Page 9

$1bn Trafigura profitCommodities traderTrafigura earned about $1bnfor a second year running,indicating that profitabilityof the houses that dominateraw materials remains highdespite the Chineseslowdown. Page 13

Gloomy year for M&AInvestment banking activityfees in 2012 fell 7 per centfrom 2011 – making it one ofthe worst dealmaking yearsin a decade. Page 13; Pent-updemand, Page 15

News Briefing

TOMORROW INFT WEEKENDBrazenly BillyLucy Kellawaytalks to comedianBilly Connollyabout fame, oldage and why heloves a goodswear word

Life & Artsrts

Momentum addiction hassapped the hedgies’ mojoGillian Tett, Page 24

The ‘4 per cent curse’Has Apple peaked? Analysis, Page 6

By Jamil Anderlini in Handan

Shi Xinwang’s jaw clenchedwith emotion as he describedhow he recently discovered thathis wife was a secret member of“Eastern Lightning”, one ofChina’s largest doomsday cults.

In his parents’ freezing bed-room cellar in their impover-ished village in central China,he held up a video on his phoneof his five-year-old daughter inhappier times, dancing and per-forming for his wife Xiaowei.

“At first I thought she wasjust a normal Christian butfrom the internet I soon learntthat Eastern Lightning is a dan-gerous cult,” Mr Shi says. “Inrecent days she has told me towithdraw all our money andprepare to beg for AlmightyGod’s mercy because the worldwill end [today].”

In desperation he has secretly

informed on her to the Chineseauthorities, which have beenrattled by the cult. A nation-wide crackdown has so far ledto the arrest of about 1000 fol-lowers of the quasi-Christiangroup, which also calls itself theChurch of Almighty God.

Eastern Lightning, one ofChina’s most aggressive mille-narian sects, believes thatChrist has been reincarnated asa woman in central China and ison a mission to lead the faithfulin a decisive battle to slay the“great red dragon” of the rulingCommunist party.

Current and former adherents

told the Financial Times thatthe group had adopted a theorypopularised in the Hollywoodfilm 2012 that says that anancient Mayan calendar pre-dicted that doomsday would falltoday.

Believers expect three days ofcomplete darkness followed by72 days of natural disasters,starting from January 1, thatwill devastate the earth andwipe out all non-believers,whom adherents, among them-selves, refer to as “snakes” and“demons”.

Followers direct recruitmentefforts at disenfranchisedgroups in China’s poorest ruralareas, including undergroundChristian “house churches”deemed illegal by Beijing, andstate-sanctioned Catholic andProtestant congregations.

“The pastor gave a sermon onSunday to warn us all about

this evil cult,” says Han Xiut-ing, 81, an administrator at theofficially sanctioned North Prot-estant Church of Handan, theclosest city to the area whereMr Shi’s wife has been trying toharvest souls in preparation forArmageddon.

“After the service we gatheredtogether and burnt some of[Eastern Lightning’s] pam-phlets.”

In response to questions fromthe FT, Eastern Lightningdenied that it was a cult andsaid it was being persecuted bythe Communist party.

Eastern Lightning claims tohave millions of followersthroughout the country. Thegovernment and other Christiangroups put their numbers atclose to 1m.

Additional reporting by Gu Yu

China’s ‘610 office’, Page 2

Beijing pre-empts end of the world incrackdown on Eastern Lightning cult

The cult anticipates abattle to slay the‘great red dragon’ ofthe Communist party

ICE in $8.2bn gamble withdeal to buy NYSE EuronextBy Philip Staffordin London andArash Massoudi in New York

IntercontinentalExchange hasagreed to buy NYSE Euronext,its 208-year old rival, in a $8.2bndeal that will make the energyand commodities bourse one ofthe world’s largest derivativesmarkets operators.

The deal, announced yester-day, marks the biggest gambleto date by ICE chief executiveJeff Sprecher, who has longcoveted NYSE Liffe, the Euro-pean derivatives exchangeowned by NYSE Euronext.

Last year ICE and NasdaqOMX jointly launched a $11.3bnhostile bid to acquire and breakup NYSE, but abandoned themove after US antitrust bodiesthreatened to sue to block it.

ICE will keep the iconicNYSE building on Wall Streetbut wants to hive off Euron-ext’s cash equities arms, whichinclude the stock exchanges ofParis, Amsterdam, Brussels andLisbon. The company said thatit was exploring a listing ofEuronext if market conditionsallowed and European policymakers supported the offering.

The deal will propel ICE, the12-year-old exchange that hasgrown through offering tradingin energy, emissions and com-modities, into the trading oflisted interest-rate derivatives,the world’s largest asset class.It will also transform ICE intothe third-largest operator offutures exchanges, posing athreat to Deutsche Börse andCME Group.

“Markets have inherentlychanged in the face of theglobal financial crisis,” saidMr Sprecher. “While derivativesmarkets have become more glo-bal . . . many cash and equitymarkets have become moreregional as major Europeanfinancial institutions turnedtheir focus to capital efficiencyand regulatory reform.”

ICE’s ambitious takeover

NYSE share in a mixture ofcash and shares. The duo saidthat they would have headquar-ters in Atlanta, where ICE isbased, and New York.

NYSE shareholders will havethe option of either accepting$33.12 in cash per share, taking0.2581 ICE common shares or amix of $11.27 in cash plus 0.1703ICE common shares, subject toa maximum cash considerationof approximately $2.7bn.

Mr Sprecher will remain chief

executive of the enlarged com-pany while Duncan Niederauer,chief executive of NYSE Euron-ext, will be chief executive ofNYSE Group and president ofthe enlarged company.

Like all other incumbentexchanges, NYSE has seen itsdominant market share andprofits from stock tradingeroded in recent years by rivalsoffering faster trading andcheaper prices.

NYSE’s combined share trad-

ing platform accounts for onlyabout a quarter of all US equitytrading, forcing it to focus onEuropean derivatives and IToutsourcing services.

ICE was advised by MorganStanley, and NYSE Euronext byPerella Weinberg Partners andBNP Paribas.

Lex, Page 12Chief’s biggest bet, Page 17NYSE rises, Page 26www.ft.com/tradingroom

UK bankpanel callsfor stricterreformsBy Patrick Jenkinsand George Parker in London

The UK risks failing to mendbanking’s broken ethical stand-ards and structure, according toa review of the government’sreform plans by an influentialcross-party commission.

Andrew Tyrie, the Conserva-tive MP who chairs the Parlia-mentary Commission on Bank-ing Standards, said the Liborscandal – which this week sawSwiss bank UBS pay $1.5bn infines to regulators in the US, UKand Switzerland – was just thelatest proof that the banksneeded reining in.

“Investigations into Liborhave exposed a culture of culpa-ble greed far removed from theinterests of bank customers, cor-roding trust in the whole finan-cial sector,” says the commis-sion’s report, published today.

In a 146-page assessment ofthe government’s planned Vick-ers reforms, the panel endorsesthe central idea that “universal”banks should be made to erect aprotective “ringfence” aroundtheir high-street banking activi-ties. However, it urges GeorgeOsborne, the UK finance minis-ter, to go much further.

“The proposals, as they stand,fall well short of what isrequired,” it says. “Over time,the ringfence will be tested andchallenged by the banks . . . tosucceed, banks need to be dis-couraged from gaming therules.”

The report argues for an “elec-trified” ringfence, which wouldsee regulators given the powerto force the break-up of a bank,or of the whole sector.

Mr Tyrie’s panel fears thebanks will try to wriggle under,over or around the ringfenceunless it is “electrified”. Heurged the banks to respect therules. “We are saying to thebanks: help us make theringfence work. If not the regu-lator may pull you apart.”

The Treasury said it wouldstudy the conclusions carefully.

Editorial Comment, Page 8

comes ahead of a big shake-up ofderivatives trading.

In the wake of the financialcrisis, global regulators want topush more of the off-exchangederivatives market on to trans-parent trading venues and havemore deals processed throughclearing houses.

The changes are due to comeinto effect next year in the USand in 18 months in Europe.

Under the terms of the deal,ICE has agreed to pay $33.12 per

Move for larger rival ●Threat to D Börse and CME ●Europe arm to be shed

Other listed US & Europeanderivatives

Technology

Other

US & Europeancash equities

Market data

Issuer services

ICE NYSE Euronext

Crude oil& gas oil

OTC gas

OTC power,oil & otherOTC CDS

Market data

Source: Berenberg BankFT graphic

2011 revenues split (%)

29 25 21

19

1313

9

19

14

8

13 17

Photo: Bloomberg

2 ★ FINANCIAL TIMES FRIDAY DECEMBER 21 2012

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By Michiyo Nakamotoin Tokyo

The Bank of Japan steppedup its monetary easing yes-terday with a Y10tn($118bn) increase in the sizeof its asset-purchasing pro-gramme and signalled thatit could adopt a higherinflation goal, as requestedby Shinzo Abe, the incom-ing prime minister.

The central bank said itwould expand its asset pur-chasing programme from

Y91tn to Y101tn by buyingmore Treasury discountbills and Japanese govern-ment bonds.

Mr Abe turned the BoJ’srole in reviving the Japa-nese economy – which hasdipped into recession – intoa central election issue andrepeatedly called for it to domore to combat persistentdeflation by adopting“unlimited” easing.

He piled more pressure onthe bank after his LiberalDemocratic party’s land-slide win on Sunday,reminding MasaakiShirakawa, BoJ governor,of his desire to implement a2 per cent inflation target.

Mr Shirakawa, who haslong resisted calls for more

aggressive easing, said theBoJ policy board wouldreview its inflation goal atits next meeting in Januaryand make a decision onwhether to change it. Headmitted Mr Abe’s requestfor a higher price goal wasone factor behind the deci-sion to discuss inflation atthe January meeting.

His comments heightenedexpectations that the cen-tral bank could adopt moreaggressive monetary easingdespite Mr Shirakawa’s ownreservations.

“The chances are highthat the BoJ will raise itsinflation goal to 2 per centin January,” said Mit-sumaru Kumagai, chiefeconomist at Daiwa Insti-

tute of Research in Tokyo.Mr Abe welcomed the

BoJ’s move, saying: “Whatwe called for during thelower house election isbeing realised one by one.”

After a regular meeting ofits policy board, the BoJ –which has an inflation goalof about 1 per cent – said itwould discuss “the mediumto long-term price stability

that the Bank aims toachieve” at its Januarymeeting.

Mr Abe is expected tochoose a more dovish gover-nor when Mr Shirakawa’sterm ends in April.

Some economists inter-preted Mr Shirakawa’s com-ments and the lack of aclear commitment to rais-ing the inflation goal as asign that the BoJ governorwas resisting political pres-sure for more easing.

“The BoJ believes it isimpossible to achieve aninflation target, that it can-not force people to go outand spend,” said MasamichiAdachi, senior economist atJPMorgan in Tokyo.

“They are being forced to

do something that theybelieve is not possible.

“The BoJ’s independence,as we know it, no longerexists.”

Mr Shirakawa defendedthe bank’s efforts to stimu-late growth, saying its assetpurchases would now beclose to 40 per cent of grossdomestic product.

Even before yesterday’sadditional easing, the BoJ’sasset purchase programmewas 27 per cent of GDP and“the largest among devel-oped countries”, he said.

The central bank has keptits policy rate at virtuallyzero since the collapse ofLehman Brothers in 2008. Itadopted its asset-buyingprogramme in 2010.

Mr Shirakawa has warnedthat aggressive bond buy-ing by a central bank with-out fiscal discipline wouldcause a loss of market trustand rises in long-term inter-est rates.

Japan has a gross debt toGDP ratio of more than 200per cent, the highest in thedeveloped world.

“It cannot be denied thatas the public debt rises andthe people become accus-tomed to it, financial disci-pline will be lost,” MrShirakawa said on Wednes-day.

He reiterated his calls forthe government to play itspart to boost the economy.

See Comment

BoJ expands stimulus programmeMove comes afterAbe election winInflation goal facesreview in January

‘The chancesare high that theBoJ will raise itsinflation goal to 2per cent in January’

By Victor Malletin New Delhi

Narendra Modi has beenconvincingly re-elected aschief minister of the Indianstate of Gujarat, a politicaltriumph that willstrengthen his chances ofbecoming Indian prime min-ister and leading theworld’s largest democracy.

Mr Modi’s Hindu nation-alist Bharatiya Janata partywon 115 of the 182 seats inGujarat, close to the 117 hewon last time. His mainopponents, the Congressparty – in power nationally– won only 61 seats, saidthe Election Commission.

But in the smaller state ofHimachal Pradesh, Con-gress defeated the incum-bent BJP, winning 36 of the68 seats, compared with 26for the BJP.

Mr Modi, about to enterhis fourth term of office asleader of Gujarat’s 60m peo-ple, is credited by businessleaders and Gujarati voterswith promoting investment,building infrastructure andmanaging the local econ-omy efficiently, in contrastto the chaos, delays andcorruption prevalent insome other parts of India.

“We have set an examplebefore the country that ifgood governance and devel-opment can be seen on theground they will rise abovecaste and community con-cerns,” he told a victoryrally in Ahmedabad.

However, the ascetic MrModi is seen as divisive bymany Indians, who blamehim for the killing of hun-dreds of Muslims by Hindumobs in Gujarat 10 yearsago, shortly after hebecame chief minister forthe first time and a traincarriage full of Hindu pil-grims was set alight byMuslim attackers.

Mr Modi was accused ofdiscouraging police fromintervening to stop thebloodshed over days of vio-lence. He has always deniedthe allegations and con-demned the anti-Muslimriots, saying he “should behanged in public” if his gov-ernment was responsible.

The Gujarat victory willboost Mr Modi’s chances ofbeing chosen by the BJP ascandidate for prime minis-ter in the next general elec-tion, due in 2014.

Congress leaders tried toput a brave face on theGujarat defeat, with Palani-appan Chidambaram, theIndian finance minister andpossible prime ministerialcontender, even claimingearly in the day that Con-gress was a winner inGujarat because the BJPhad been “contained”. Hesaid: “We are not thinkingin terms of 2014 now. 2014 isa good 16 months away.”

Mr Modi’s victory wasnevertheless a setback forSonia Gandhi, Congressleader, and her son Rahul,who is a member of theNehru political dynasty andhas been groomed as a pos-sible future prime minister.

Additional reporting byJyotsna Singh

Gujaratwin liftsModi’sambitionto be PM

In a poor and desolatevillage in China’s Hebeiprovince, Shi Xinwangestimates about one in 10local people are membersof the Eastern Lightningdoomsday cult – includinghis wife Xiaowei – or inthe process of beingconverted. It is hard toknow, he says, becausefollowers know each otheronly by such codenames as“Strong as Steel” and“Seeker”.

“China’s modernisationhas been so fast and thegovernment has ignoredpeople’s need for spiritualfulfilment,” said Mr Shi,who is not a followerhimself.

He said his wife washappy and content whenthey moved to Beijing in2006 in search of a betterlife and only rejoined whenshe returned to their homevillage to look after herageing father, who is alsoan Eastern Lightningdevotee.

To aid in theirproselytising, EasternLightning’s songs are setto the tune of Communistanthems such as the“Internationale” and thegroup allegedly providessmall loans or even sexualfavours as inducements toprospective members. Thegroup, inspired by mythsthat the apocalypse iscoming today, is alsoaccused of kidnapping andtorture, say governmentofficials in charge ofinfiltrating its ranks.

“This religion is

extremely hard to smashbecause they often onlyhave single points ofcontact between separatelevels,” one 33-year-oldEastern Lightning cadre inthe eastern city of Jinan,who is also a spy for theChinese police, told theFinancial Times. “It’sactually very similar to theCommunist party duringits undergroundrevolutionary phase [before1949].”

“It’s also a bit likepyramid selling,” he added.“The more people yourecruit and more moneyyou give to the church thehigher your status will bein heaven. If you don’tdonate, you don’t have achance for promotion inthis life either.”

Eastern Lightningrepresentatives deny thattheir organisation is a cultand say they are beingpersecuted by thegovernment.

In recent weeks therehave been sporadicprotests by groups ofbelievers in remote parts ofthe country calling onpeople to offer themselvesup for salvation andtaunting the rulingCommunist party that it isabout to be wiped out byGod’s wrath.

The party is especiallysensitive because ofChina’s history ofmillenarianism going backto the advent of the WhiteLotus sect of Buddhism inaround the 13th century.

The Taiping rebellion – aquasi-Christian uprising inthe mid-19th century ledby a man who believed hewas the younger brother ofJesus – captured most ofsouthern China in a civilwar that remains thebloodiest in history, withas many as 30m killed.

More recently, Beijinglaunched a crackdown in1999 on the Falun Gong

spiritual movement thathas seen thousands ofadherents tortured andimprisoned.

Eastern Lightning wasfounded in the early 1990sin central China’soverpopulated and poorHenan province by ZhaoWeishan, a former member

of the radical Christian“shouters” sect fromnortheast China whoclaimed to have discoveredthe living female Christand told followers to throwaway the Bible.

Mr Zhao fled to the USmore than a decade ago,where he was givenasylum on the grounds ofreligious persecution.

The government haslaunched attacks on thegroup since it wasdesignated an evil cult in

2000 but, as with manyapocalyptic movements,persecution is seen asevidence that the endof days is at hand.

“They believe thatany hardship theyexperience is a testfrom God and so themore we crack downon them the morethey believe in thiscult,” said an

official from theCommunist party’sshadowy and extrajudicial“610 office”, which is

named after the date itwas established (June 101999) to lead the attack onFalun Gong. The office isnow in charge of “anti-cult” operations.

Although they also viewEastern Lightning as adangerous cult, someChristian activist groupsoutside China areconcerned that the arrestsof adherents could markthe start of a campaignagainst undergroundChristian churches.

Others argue thatrestrictions on all forms ofreligion actually encouragethe emergence of moreradical groups.

Mr Shi said he plannedto offer his wife anultimatum tomorrow, onceher doomsday prediction isproved wrong.

“If nothing happens onDecember 21 then I willtell her she has to quit andif she won’t, I’ll move backto Beijing with ourdaughter and she will goto jail.”

Doomsdaycult is targetfor China’s‘610 office’ReligionCrackdown againstEastern Lightningfollowers promptsfears for Christianchurches, writesJamil Anderlini

French refuge under media siegeThe little village ofBugarach in southwestFrance has found itselfunder media siege thisweek as the result ofinternet­fuelled stories thatit will survive the end of theworld – supposedly duetoday when the Mayancalendar expires, writesHugh Carnegy in Paris.

A strangely shapedmountain called the Pic deBugarach that overshadowsthe village is the centre ofattention, having evokedtales of extraterrestrialpowers for years.Apparently, the rocks at thetop of the peak are millionsof years older than thoselayered below, endowing itwith mysterious qualities.

According to internet lore,the mountain will offerprotection to inhabitantsfrom the comingapocalypse. One notion isthat it will open up and

aliens will emerge torescue those waiting forredemption.

More than 200 journalistsand camera crews fromaround the world haveflocked to the village for thebig day, far outnumberingthe handful of people whohave travelled to Bugarachin search of shelter fromthe world’s demise,according to reports fromthe scene.

The local authorities havedrafted in 150 police, shutoff access to themountain andimposed restrictionson movementaround the village inan effort to keepcontrol.

Those deterred bysuch measures hadthe choice of othersites deemed havensfrom cataclysm inTurkey, Italy and Serbia.

WORLD NEWS

By Simon Mundy in Seoul

Park Geun-hye began herfirst day as South Korea'spresident-elect with a visitto the graves of her authori-tarian father and his mostfamous opponent, as shesought to win over herdetractors after the fiercelycontested campaign.

“I will appoint peoplefrom all regions, gendersand generations,” Ms Parksaid yesterday, after hervictory over the liberal can-didate Moon Jae-in was con-firmed late on Wednesday.“I will try to cut off thehistorical loop that hascaused extreme divides anddiscord in the last halfcentury.”

Her address, at the head-quarters of her New Fron-tier party, followed her visitto Seoul’s national ceme-tery. In a gesture of recon-ciliation, she bowed beforethe grave of her father, themilitary ruler Park Chung-hee, and that of Kim Dae-jung, the leader of resist-ance to Mr Park’s rule, whowent on to serve as a liberalpresident.

People close to Ms Parksay that one of her priori-ties is winning the trust ofMr Moon’s supporters,many of them young peoplewho view her as an unwel-come reminder of the coun-try’s authoritarian past.

“Forty-eight per cent ofKoreans voted for Mr Moon,so she really has to bringthe country together,” saidLee Chung-min, a senioradviser to Ms Park. “Whenshe appoints senior peopleto cabinet, she will reallyreach out across the aisle.”

In pre-election surveys,most voters cited the econ-omy as their chief concern.Ms Park put “economicdemocratisation”, involvinga crackdown on bad prac-tices by big business andmore support for those fur-ther down the income scale,at the heart of her cam-paign. She is likely to raisetaxes, according to one per-son in her camp, althoughdetailed tax plans were notpart of her election plat-form. She also plans to cuttuition fees for universitystudents, expand statehealthcare provision, and

stimulate new industriesthrough measures such as“start-up incubators” tohelp entrepreneurs.

However, she is to take arelatively restrained line indealing with the power-ful chaebol conglomerates,compared with the changespromised by Mr Moon.While the liberal candidatepledged to abolish the com-plex “circular sharehold-ing” structures that allowthe groups’ founding fami-

lies to retain control, MsPark believes that wouldleave the companies vulner-able to hostile takeovers.Her camp says she willfocus on ensuring thatexisting laws are imple-mented more thoroughly.

She has promised to beless generous in her use ofthe presidential pardonthan Lee Myung-bak, theoutgoing president.

The US, which favouredMs Park’s foreign policystance over Mr Moon’s, willwelcome her victory, accor-ding to analysts in Wash-ington. Mr Moon wasexpected to work towards aresumption of talks withNorth Korea and economicassistance. Ms Park is keento improve relations withNorth Korea but will main-tain a tougher stance thanher rival against its nuclearweapons programme.

South Korea starts a two-year term on the UN Secu-rity Council next month,allowing Ms Park to build agreater global role for thecountry.

See Editorial Comment

By Richard McGregorin Washington

Chinese wanting to investin the US should not haveto undergo “political back-ground checks”, a top Com-munist party official said atthe close of high-level tradetalks with his counterpartsin Washington.

Wang Qishan, the outgo-ing vice-premier responsiblefor commerce, trade andfinance, said at a dinnerattended by US cabinetmembers yesterday therewas no reason for Chineseinvestors to be asked abouttheir political affiliations.

“How can you check ifthey belong to the Commu-nist party or other parties?”he said, adding that Ameri-cans were not asked similarquestions about their poli-tics when investing abroad.

Mr Wang has just beenpromoted to the seven-member politburo inner-circle, the ruling party’smost powerful body, andwill soon take up his new

job as the party’s anti-cor-ruption chief.

His comments about polit-ical checks touch on a long-running complaint of theChinese – that their state-owned companies areunfairly discriminatedagainst when trying toinvest in the west.

The executives of Chinesestate companies are allappointed, and removed, bythe personnel arm of theCommunist party.

However, China main-tains that the companiesare independent businessentities that make decisionson commercial grounds, notat the direction of the rul-ing party or the govern-ment.

A congressional reportreleased in October warnedUS companies not to dobusiness with Huawei, aprivate telecommunicationsequipment manufacturer,because of security con-cerns.

In full, www.ft.com/us

Park talks of accord after S Korea win Beijing attacks USinvestor checks

Doomsday message: Beijing commuters by a poster for ‘2012’, a disaster film, yesterday. Below, Falun Gong members in the US protest in 2001 AFP

Park Geun­hye burns incenseat the national cemetery

DECEMBER 21 2012 Section:World Time: 20/12/2012 - 17:31 User: jamesa Page Name: WORLD1 USA, Part,Page,Edition: EUR, 2, 1

FINANCIAL TIMES FRIDAY DECEMBER 21 2012 ★ 3

WORLD NEWS

By James Politiin Washington

The US economy grewfaster than expected by 3.1per cent in the third quar-ter, according to the latestrevision by the commercedepartment, putting it in astronger position to with-stand any shock from thelooming fiscal cliff.

The figure was higherthan the 2.7 per cent annu-alised growth previouslyestimated for the thirdquarter, and far more thanthe 1 per cent growth ratethat was originally calcu-lated by the commercedepartment two monthsago.

The upward revision fol-lowed higher net exports, aswell as support from con-sumer and governmentspending.

Economists were com-forted by the data – whichshowed the US economygrowing at its fastest sincelate 2011 – but cautionedthat it was unlikely to lastlong. “This revision was ahealthy one, driven by finalsales, not inventories,” saidNigel Gault, chief US econo-mist at IHS Global Insight.“But it overstates the econ-omy’s momentum, and weexpect growth of just below1 per cent in the fourthquarter.”

Mr Gault added that theoutcome of talks in Wash-ington to avert the fiscalcliff – a $600bn contractionmade up of tax rises andspending cuts due next year– would be critical for theUS economic outlook.

“The longer the negotia-tions drag on, especially ifthey extend into January,the more the uncertaintywill hurt consumer andbusiness confidence, andwillingness to spend. Atimely resolution will help

confidence, but we shouldnot expect the economyimmediately to spring tolife,” Mr Gault said.

Last week, the US FederalReserve showed it was notespecially confident in thesustainability of the highergrowth rate seen in thethird quarter. It took theunprecedented step of tyingrock-bottom interest ratesto the jobless level, pledg-ing not to raise rates untilthe unemployment ratefalls to 6.5 per cent, as longas inflation does not riseabove 2.5 per cent. The USjobless rate is 7.7 per cent,according to the latest datafor November from thelabour department.

The stronger data ongrowth yesterday cameamid encouraging figuresfrom the housing sector.The pace of existing homesales rose by 5.9 per cent toa three-year high of 5.04munits in November from4.76m units the previousmonth.

“With tightening supplyand improving demand, thefundamentals in the UShousing market are contin-uing to move in a very posi-tive direction,” says MillanMulraine of TD Securities.

“Notwithstanding theseimproving fundamentals,the housing reboundremains vulnerable to anydisruption in the overalleconomic recovery in thenear term, and any misstepon averting the fiscal couldjeopardise the positivemomentum in this crucialsector,” he added.

Meanwhile, weekly job-less claims rose by 17,000 to361,000 after a big drop theprevious week.

The more reliable meas-ure of jobless claims, thefour-week moving average,fell to 367,000 as a spike inclaims in response to dis-ruptions related to super-storm Sandy in Novemberdropped out of the series.

“Looking through the vol-atility, it seems that theunderlying pace of lay-offshas held fairly steady inrecent months,” said econo-mists at RBS in a note.“That is certainly encourag-ing given the pullback incapital spending the lastfew months and the uncer-tainty surrounding the 2013outlook, but as we havesaid repeatedly, it is theslow pace of hiring that ispreventing better improve-ment in the labour market,not the current pace of lay-offs,” they added.

US economygrows quickerthan forecast

More at FT.com

●All eyes on Syria2012 was dominated by anelection in the US, aleadership transition inChina and turmoil in theMiddle East. GideonRachman outlines the newyear’s big global flashpoints and says the eyesof the world will continueto be on the conflict inSyria in 2013www.ft.com/2013video

●World podcastThe killing of 26 people,including 20 children, at anelementary school inNewton, has changedAmerica’s discussion aboutgun control, but will it leadto legislative change? FTwriters discuss the stepsPresident Barack Obamacan take to curb investmentin the gun industrywww.ft.com/worldweekly

They are called “modernsporting rifles” in investorpresentations and industrypublications. Among enthu-siasts they are often knownsimply as “black rifles”.

One such semi-automaticrifle, the Bushmaster .223,was used to kill 20 childrenand six adults in Newtown,Connecticut. These weap-ons are now the focus ofrenewed attempts to imposetighter controls on gunownership in the US.

They are also among thefastest-growing productlines for US gunmakers.

In the 1990s and 2000s, theUS rifle industry had aproblem. Hunting, a tradi-tional core market, was inlong-term decline, as thecountry became more urbanand suburban.

The number of huntersfell from 16.6m in 1975 to12.5m in 2006, according tothe US Fish & Wildlife Serv-ice.

The answer was for gun-makers to attract a newgeneration of customerswith modern sporting rifles:guns that looked not liketheir fathers’ old bolt-actionrifles, but like the latestmilitary assault weapons.

As the chief executive ofSmith & Wesson, one of thelargest manufacturers ofthe new style of rifle, put itto investors in September,there is an important mar-ket in younger customerswho are “coming of age,very interested in firearms,[and] grew up playing videogames”.

Machismo is an importantpart of the marketing.Bushmaster has been run-ning adverts in men’s mag-azines saying that owningtheir guns was a way toearn your “man card”.

In a 2010 survey by theNational Shooting SportsFoundation, an industrygroup, 99 per cent of ownerswere men.

Modern sporting rifles

look like combat riflesbecause that is what theywere designed as. Most ofthe ones sold in the US arebased on the AR-15 design,developed by Armalite forthe US Army in the1950s and now produced by

many different manufactur-ers. There is a vigorous cul-ture of blogs and talk-boards, includingwww.ar15.com, “home ofthe black rifle”, whereenthusiasts discuss equip-ment and swap tips.

Owners generally like toaccessorise their guns,spending hundreds of dol-lars on extras such assights, scopes, lights andgrips.

Like other fashionableguns such as the Glock pis-

tol, the AR-15 has alsobecome part of gangster rapculture, name-checked insongs by Tupac Shakur, 50Cent and Lil Wayne.

The results have beenspectacularly successful.Freedom Group, the owner

of Bushmaster rifles, said inits most recent annualreport: “The continuedadoption of the modernsporting rifle has led toincreased growth in thelong-gun market, especiallywith a younger demo-graphic of users and thosewho like to customise orupgrade their firearms.”

Freedom estimated thatwhile total sales of longguns to US consumers roseat an annual rate of just 3per cent during 2007-11,modern sporting rifles grewat an annual rate of 27 percent.

That growth has acceler-ated this year. Smith &Wesson reported its sales ofmodern sporting rifles hadmore than doubled in thesix months to October com-pared with the equivalentperiod of 2011.

The number of huntersrebounded to 13.7m in 2011.But the NSSF survey foundthat hunting was not theprincipal reason why peopleowned these guns. Targetshooting and “homedefence” were the most pop-ular reasons, with big gamehunting a distant sixth.

Although not fully auto-matic, AR-15s are capable ofrapid fire, and large maga-zines holding 30, 50 or even100 rounds reduce the needto stop and reload.

As a commenter on anonline customer forum forWalmart, the retail chainwhich is one of the largestsellers of these rifles, put it,they fire “as fast as you canpull the trigger”.

Almost a third of theowners in the NSSF surveysaid they used magazinesholding 30 or more rounds.

The US “assault weap-ons” law that lasted from1994 to 2004, banning salesof large-capacity magazinesand some specified modelsof semi-automatic rifle, hadlarge loopholes that allowedmanufacturers to escape itsrestraints, but is believedby its supporters to havehad some effect on theavailability of these guns.

Their increased popular-ity today means the politi-cal difficulty of reinstatinga similar ban may be evengreater now than it wasthen.

See New York Notebook

Gun control measures centre on ‘black rif les’

A Rock RiverArms AR­15 rifle,similar to aBushmaster Getty

99%Percentage of sporting rifleowners who are male

56%Percentage of sportingrifle owners with nomilitary background

13.7mNumber of hunters in 2011,up from 12.5m in 2006

88%Percentage of sporting rifleowners who are educatedto at least college level

Source: National Shooting Sports Foundation

US shootingsReinstating a banon popular assaultweapons will bepolitically difficultto achieve, writesEd Crooks

Housing boost: existing homesales hit three­year high

Housing boost: existing homesales hit three­year high

DECEMBER 21 2012 Section:World Time: 20/12/2012 - 19:05 User: jamesa Page Name: WORLD2 EUR, Part,Page,Edition: EUR, 3, 1

4 ★ FINANCIAL TIMES FRIDAY DECEMBER 21 2012

By Michael Peelin Abu Dhabi

Syrian rebels battled regimeforces around the centralcity of Hama yesterday,part of an intensifying cam-paign to capture the crucialroad artery that links thecapital Damascus to the big-gest cities.

Full opposition control ofthe highway and ruralareas around the histori-cally rebellious Hama andits near southern neighbourHoms would sever linksbetween the regime’s twinstrongholds of centralDamascus and the coastalnorthwest, analysts said.

While President Basharal-Assad’s regime maintainscontrol of large parts of thebiggest cities, the four-dayHama opposition offensiveunderscores how much ofthe countryside and trans-port links have slipped fromthe government’s grasp.

“If the rebels were to takeHoms and Hama, theregime would effectively becut off from its hinterland,”said Bernard Haykel, pro-fessor of near eastern stud-ies at Princeton University.“That would be a very seri-ous blow.”

Opposition fighters attac-

ked loyalist checkpoints inZughba, Ma’an and otherpro-regime villages in thearea around Hama, accord-ing to the Syrian Observa-tory of Human Rights, aUK-based pro-oppositionmonitoring group. It saidseveral rebel battalionswere involved in the cam-

paign, which had also tar-geted checkpoints on theDamascus-Aleppo roadnorth of Hama, where theSyrian regime killed an esti-mated 20,000 people duringa 1982 uprising.

Rebel forces aroundHama were trying to sur-round a military air base

and drive out loyalist mili-tiamen, known as shabbiha,who have been launchingattacks from countryside tothe west of the city, saidAbu Malik, an activist whowas in the area in thebuild-up to the offensive.

He said opposition fight-ers wanted to take control

of the main north-southroad, to allow direly neededsupplies to be transporteddirectly from the Turkishborder to Hama and eventu-ally Homs, which is Syria’sthird-largest city. “The lineshave to be open to allowrelief to go in,” Abu Maliksaid. “We can’t feed thewhole population by smug-gling things in.”

The contested 50km roadfrom Hama to Homs isimportant to both sides, asHoms is the meeting pointof numerous highways link-ing population centres toDamascus in the south. Ifrebels were to cut that link,Damascus would be isolatedfrom the north-westernhomeland of the minorityAlawites, who dominate theAssad government.

That would further under-mine the regime and inten-sify fears both of a parti-tioning of the country andof revenge attacks on Alaw-ites by advancing rebelsalready implicated in atroci-ties, analysts said. Scores ofAlawites were killed in thevillage of Aqrab last week,in circumstances thatremain unclear.

Battle rages to control Syria arteryRebels fight to seizehighway at HamaCountryside slipsfrom regime’s grip

Iran

Western sanctions set offwave of street robberiesStreet robberies in Iranhave risen in recentmonths, resdients say, asUS and European sanctionshave taken their toll on theeconomy and purchasingpower has fallen, writesNajmeh Bozorgmehr inTehran.

There are no officialcrime figures but Tehranresidents report assaults onfriends, relatives andneighbours. Usually theattackers are young menbearing knives who demandtheir victims hand overmoney or other valuables.

Authorities have soughtto reassure peopleconcerned by the rise incrime. Tehran’s police chief,Hossein Sajedi­Nia, said thismonth more measures werebeing taken to minimisesocial crimes.

Ayatollah Sadegh Amoli­Larijani, the judiciary chief,warned in mid­Decemberthat the death sentenceapplied to robbers armedwith weapons other thanguns. “People’s security ismore essential than bread.”He urged the police to “kick

off a new round of dealingwith hooligans”.

But one video posted onthe internet this month hasfuelled a feeling ofinsecurity. Four men on twomotorbikes – one holding aknife – stopped in a busystreet and forced a youngman to give them hisbriefcase. They later cut hisface so he could not chasethem. Iran’s police haveidentified the thieves andarrested them.

The rise in crime followsthe fall of the rial’s value by48 per cent this year, afterUS and EU sanctionsaggravated already highinflation and unemployment.Official figures put the risein consumer prices for thisyear at 26.1 per cent, whileyouth unemployment standsat 28.6 per cent. Manypeople believe the realfigures are much higher.

“The rise in social crimesshows people feel underenormous economicpressure,” said a seniornon­western diplomat.

In full: www.ft.com/iran

WORLD NEWS

Image rites: rebel fighters remove the portrait of Bashar al­Assad from a military hospital at Halfaya, north of Hama Reuters

It was about time theSyrian regime and thosewho back it recognisedreality.

Nearly two years intothe most violent crisis ofthe Arab awakening,Russia’s deputy foreignminister Mikhail Bogdanovconceded this month thatan opposition victory couldnot be ruled out. A fewdays later, it was the turnof Farouq al-Sharaa, theSyrian vice-president, tocast doubt on a militarysolution and call for anempowered national unitygovernment.

The shifting balance onthe ground is impossible toignore. Despite PresidentBashar al-Assad’s vastmilitary superiority,Syria’s rebels have madesignificant gains, seizingmilitary bases – togetherwith more sophisticatedweaponry – and forcing theair force to reduce itsbombings of northern areasunder opposition control.

The regime lost much ofthe countryside long ago.Now its cities too arethreatened, with half ofAleppo in rebel hands,and a new offensive justlaunched to seize Hama.

Fighting in the capitalDamascus has alsointensified, amid forecastsa bloody battle for controlof the city is heating up.

To be sure, the regimestill has important militaryassets. It can fight on andwreak more destruction,but it cannot win orsubdue the rebellion.

Diplomats estimate thatthe regime has regroupedas many as 80,000 of itsbest trained forces in andaround Damascus(compared with just a fewthousand inserted by therebels so far). It also stillhas massive land artillerycapability, in addition tothe air force and anarsenal of chemicalweapons that remains aterrifying last resort.

Predictions of imminentregime collapse might beoverstated. But diplomatsand analysts say themounting pressures on MrAssad present a newopportunity to test thediplomatic prospects.

For months, westernpowers sympathetic to theopposition (even if notresponding to dissidents’calls for military support)have been waiting for themoment when the regimefeels sufficiently corneredto sue for peace. Butalthough Damascus andMoscow appear to see themoment is approaching,the parameters of a dealare still unclear and itsviability doubtful.

Salman Sheikh, a formerUN diplomat, now directorof the Brookings DohaCentre, says the stickingpoint remains the fate ofMr Assad. The Russiansare flying trial balloons, heargues, but still talkingabout elections in whichthe Syrian leader wouldstand. The opposition andits supporters, on the otherhand, see his departure asthe prerequisite for apolitical transition.

Vladimir Putin, Russia’spresident, said yesterdaythat the fate of Mr Assadis not what preoccupieshim. Moscow’s concern, heinsisted, was to see anagreement on whathappens next before anychange in the currentorder. The necessity of aninternationally-backedSyrian understanding is allthe more urgent today toprevent what manyanalysts warn could bethe fragmentation ofthe country in the post-Assad era.

“It has gone beyond theissue of Bashar,” saysSamir al-Taqi, a formerSyrian government adviserwho is a dissident based in

Dubai. “There is apossibility that thesituation gets out ofeveryone’s hands. Whathappens after Bashar isgone is important in termsof who will listen to whomand who are the forcesthat can be worked with.”

Without a politicalunderstanding backed byregional and internationalpowers, elite troops,overwhelmingly drawnfrom the same minorityAlawite community as theAssad family, wouldcontinue to protectthemselves and their areaslong after their leader isgone, says Mr Taqi.

On the other side arerebel factions that holddifferent visions of thefuture. The most fearlessand disciplined militaryforce among them isJabhat al-Nusra, a jihadigroup the US accuses ofbeing an affiliate of al-Qaeda, and whose leaderswant to establish a statebased on strict Islamicprinciples. Between therebels and the regime aremillions of Syrians who aredesperate for the sufferingand destruction to end andare likely to be growingtired of both sides in theconflict. Mr Salman agreesthat Syria’s future could beone where militants andwarlords control patchesof territory, with nocentral authority.

“It’s in everyone’sinterest that we start atransition that establishessome order,” he says.

Shifting balancepresents newopportunity

‘What happensafter Bashar isgone is importantin terms of whowill listen to whom’

GLOBAL INSIGHT

Roula Khalafin London

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FINANCIAL TIMES FRIDAY DECEMBER 21 2012 ★ 5

WORLD NEWS

By Charles Cloverin Moscow

Mikhail Khodorkovsky,once Russia’s richest manwho was sent to an Arcticprison camp after he chal-lenged the Kremlin, will befreed in 2014 – two yearsearlier than expected – afterauthorities showed unprece-dented leniency towards theleading opposition figure.

But any hope that Presi-dent Vladimir Putin mightbe about to go soft on hisopponents was swiftlycrushed when prosecutorscharged opposition bloggerand protest leader AlexeiNavalny with fraud andmoney laundering.

Despite the insistence ofRussia’s leadership that itdoes not interfere in legalmatters, experts believe nei-ther decision could havebeen taken independentlyof the Kremlin.

The new leniency shownto Khodorkovsky, theformer Yukos chief, “cre-ates a picture of mixed sig-nals” coming from theregime, which has consist-ently tightened the screwsagainst the anti-Kremlinopposition this year, saidMasha Lipman, a politicalanalyst at the CarnegieMoscow Institute.

Since early summer, anumber of repressive meas-ures have been signed into

law and criminal investiga-tions opened against opposi-tion leaders.

“There is no reason todoubt that the arrest ofKhodorkovsky and to sen-tence him were decisionstaken at the very top, sothere is also no reason todoubt that the decision toreduce his sentence wasalso taken at the very top,”Ms Lipman said.

The move to reduce thesentences of Mr Khodorko-vsky and his business part-ner Platon Lebedev wasapparently motivated by arecent decision to softenpunishments for the type ofeconomic crimes for whichthey were convicted. Thetwo men deny the charges.

However, during a four-hour press conference byMr Putin, during which helashed out at the “medie-val” treatment of detaineesin the US, Russian federalinvestigators announcedthey would charge Mr Nav-alny and his brother Olegwith fraud and money laun-dering. They accused thebrothers of embezzlingRbs55m ($1.79m) from atransport company in2008-11, charges that couldcarry a maximum jail sen-tence of 15 years, accordingto a spokesperson for MrNavalny.

Mr Navalny denied theallegations, describing themon his blog as “blackmail”,and said they were revengefor his taking part in anunsanctioned protestagainst the Kremlin lastweekend. This is the sec-ond set of formal charges

filed against Mr Navalny,who this summer wascharged with embezzlementand causing more thanRbs1m of damage to a tim-ber company.

Those charges could seeMr Navalny spend 10 years

in jail. Asked at a press con-ference yesterday aboutKhodorkovsky’s earlyrelease, Mr Putin insistedhe had nothing to do withthe decision.

“I am confident that eve-rything will be fine and inaccordance with the law,and Mikhail Borisovich[Khodorkovsky] will befreed,” Mr Putin said. “Godgive him good health.”

It was the first time MrPutin had publicly referredto Khodorkovsky by hisname and patronymic, asign of respect in Russia.

He has in the past pub-licly labelled Khodorko-vsky a “thief” who“must sit in prison”.Vadim Klyugvant,Khodorkovsky’s law-

yer, welcomed the reducedsentence but called MrPutin’s comments “theusual demagoguery”.

Khodorkovsky and Lebe-dev were sentenced toeight-year terms for taxevasion in 2005, and con-victed again of fraud inDecember 2010, with 13-yearprison terms. The sentencesinclude time served sincethey were detained in 2003.

Yesterday’s ruling clearsthe way for one of MrPutin’s fiercest critics towalk free in October 2014;Lebedev will be freed threemonths earlier.

Pouring cold water on theruling, however, defencelawyer Yuri Shmidt said hewould not believe it untilKhodorkovsky was released.

“Maybe yet another caseagainst him will appear orsomething else will happen– until the day he leaves thepenal colony it’s too earlyto say,” Mr Shmidt toldReuters.

Khodorkovsky is a contro-versial figure for the opposi-tion, some of whom see himas a symbol of defiance.Others believe he is an oli-garch who lost a clan waragainst Kremlin opponents.

Mr Navalny, on the otherhand, has been at the fore-front of mass protests inMoscow and is seen as acommitted campaigner,although some object to hisnationalist views.

Out sooner, still fighting,www.ft.com/bb

FormerYukos chiefwins earlyrelease dateKhodorkovsky togo free in 2014Protest leader isaccused of fraud

Mikhail Khodorkovsky listens during a court session in 2010. Below, protest leader Alexei Navalny at a rally this month AFP

By James Fontanella­Khanin Brussels,Neil Buckley in Londonand Jan Cienski in Warsaw

Enthusiasm for the euro iscooling among the EU’snewest members in easternEurope, as Latvia’s primeminister warned that hiscitizens were turningagainst the single currency.

Valdis Dombrovskis, wholed one of Europe’s tough-est austerity programmes inpart to keep Latvia’s euromembership hopes alive,says he faces a struggle toget the Baltic republic intothe single currency by the2014 target.

“Five years ago before theeurozone crisis everyonewanted to enter the euro,but we weren’t economi-cally ready. Now that weare ready to enter, manyhave become sceptical,”said the centre-right leader.

Interviewed by the Finan-cial Times in Brussels, MrDombrovskis said the gov-ernment was committed tojoining in January 2014, butwould have to work hard toget the country on board.

Mr Dombrovskis is some-thing of a “star pupil” inBrussels for adopting harshausterity measures in 2009,in part to keep Latvia’s cur-rency pegged to the euroand preserve its member-ship hopes.

But after its economyshrank 25 per cent peak totrough, it resumed growthlargely without having suf-fered social unrest. Neigh-bouring Estonia, which alsounderwent harsh austeritymeasures and a deep reces-sion, joined the euro lastyear.

The Latvian prime minis-ter said without austeritythe country could not havemet the entry requirementsof low inflation, a budgetdeficit below 3 per cent ofgross domestic product, and

government debt below60 per cent.

Bulgaria, which like theBaltic states has pegged itscurrency to the euro for adecade and is one of onlythree EU countries that cur-rently meet the Maastrichtentry criteria in full, hasrecently made clear it hasno short-term plans to movetowards membership.

Boyko Borisov, primeminister, told the FTrecently his governmenthad no plans to join untilthe eurozone crisis wasover. The EU’s poorestcountry should not have tohelp fund bailouts of richerstates, he said.

In Poland, public opposi-tion to euro adoption hasedged up slightly as theeurozone crisis has deep-ened, with a new opinionpoll sponsored by thefinance ministry finding 56per cent of Poles wereagainst joining, up 3 per-centage points from lastyear.

Poland’s government stillinsists it will join once itseconomy meets the entrycriteria and eurozone recon-struction is completed or,as Donald Tusk, prime min-ister, told parliament,“when the eurozone is safefor each of its members”.

The neighbouring Czechgovernment is much lessenthusiastic.

Petr Necas, the premier,has said that his countrywill not join during thisgovernment, whose man-date expires in 2014, and notuntil 2020 at the earliest,subject to approval by a ref-erendum.

Vaclav Klaus, the euro-sceptic Czech president, hascalled the European Stabil-ity Mechanism “a mon-strous and outrageousthing” and said this monthhe would not sign the EUtreaty amendment creatingthe eurozone rescue fund.

EU’s newestnations lesskeen on euro

DECEMBER 21 2012 Section:World Time: 20/12/2012 - 19:39 User: hayesa Page Name: WORLD4 EUR, Part,Page,Edition: EUR, 5, 1

6 ★ FINANCIAL TIMES FRIDAY DECEMBER 21 2012

popular among Christmas shoppers, butfor every one it sells at the expense ofits larger sibling, margins fall.

Part of the problem is that Applefaces competition from Amazon andGoogle, who sell their $199 tablets atnegligible margins, to drive sales ofcontent or search advertising.

Analysts also fear that Apple’sgradual shift to a more rapidreplacement cycle, to compete with thefast turnover of new devices fromSamsung, Amazon and Google, will alsotake a bite out its profitability, requiringa huge investment in manufacturingand supplies, and shortening the longtail of older, higher­margin devices suchas the iPhone 4 today.

“I think they’re going through a verysignificant change now in terms of

product cycles,” former Apple chiefexecutive John Sculley told CNBC.“Traditionally, Apple introduces productsonce a year; now it’s really introducingproducts twice a year.”

But concerns about iPhone availabilityhave eased in the run­up to Christmasand Apple made good on its promise tolaunch the device in 100 countries bythe year’s end, its fastest rollout yet.Some argue that Apple must release acheaper iPhone to cater to the massmarket, where devices using Google’sAndroid software dominate.

“In China, the hot smartphone pricepoint is Rmb1,000, around $160,before [operator] subsidy,” saysBenedict Evans of Enders Analysis,compared with the iPhone 4’sunsubsidised cost of $400.

Speed read●Shifting landscape Google andSamsung are catching up with Applein hardware, while cloud services arebecoming more important

●Time for change Tim Cook, Applechief executive, shook up thecompany’s management this year afterthe flawed launch of its Maps app

●Next big thing Some analysts expectApple’s next big product to be ahigh­end TV that would be controlledby gestures and voice recognition

On the webTo read news and analysis on Appleand other technology companies, go towww.ft.com/techhub

ANALYSIS

Technology

It became theworld’s mostvaluable companyby beingconsistentlycreative inhardware andsoftware – but canApple find its waythrough the cloud?By Tim Bradshaw

Innovator’s dilemma

then a TV and back again.Aware of the inroads made by

Google, Microsoft and Amazon, Jobsimpressed the urgency of the transi-tion to becoming a cloud-servicescompany on his biographer, WalterIsaacson. “We need to be the companythat manages your relationship withthe cloud,” he said.

Apple’s share-price peak on Septem-ber 19 happens to have coincided withthe release of iOS 6, the update to itsiPhone operating system that replacedthe popular Google Maps with an infe-rior mapping application of its own.

While Apple’s products have pro-gressed into the cloud, its corporateorganisation has not adapted. Cloud-based services, such as maps and Siri,the iPhone’s virtual assistant, requireconstant tweaks and improvements atthe back-end. But until this autumn,these tasks were overseen by Apple’ssoftware division, which is accus-tomed to big-bang annual updates,such as iOS 6. The perfectionist pri-vate testing and pixel-level tuningthat Apple gives to a piece of softwarebefore releasing it requires a very dif-ferent design and development proc-ess to more iterative, feedback-basedservices such as Maps. Yet it took twoyears after iCloud was launched forMr Cook to make the necessarychanges to Apple’s managementstructures in Cupertino.

A shake-up in October led to thedeparture of Scott Forstall, Apple’ssoftware chief. Power shifted towardsSir Jonathan Ive, the British designercredited with creating the unique lookof Apple’s hardware. And responsibili-ties for Maps and Siri were handed toEddy Cue, who runs the iTunes andApp Store units.

The exit of Mr Forstall, who joinedApple when Mr Jobs returned in thelate 1990s, is a big loss to the com-pany, say those who worked for him.Even those who rankled at his aggres-sive management style say that inmany ways he was the closest Applehad to Mr Jobs’ product leadership.

Yet Mr Forstall clashed with SirJonathan, who now has responsibilityfor the look and feel of software inaddition to his hardware role. Rela-tionships that held together under MrJobs frayed under Mr Cook.

Time magazine. “Like no other.”A much discussed idea – a premi-

um-quality Apple TV set – could pro-vide a new leg of growth. Mr Cookhinted to NBC that the TV marketwas now “an area of intense interest”instead of a mere “hobby”. After avisit to Asia, Jefferies analyst PeterMisek reported “several prototypesfloating around” that were controlledby gestures and voice recognition. Itcould launch next autumn. “We thinkit’s vital that it comes,” Mr Miseksaid. “It’s a key linchpin in the home.We think it would act as an ecosystemhalo effect.”

Apple’s App Store and iTunes arevital parts of this ecosystem. One app-market researcher, Distimo, estimatesthat on a typical day, consumerspending on the App Store is $15m,more than four times as much asGoogle Play, its marketplace forAndroid devices – despite the iPhone’smuch smaller share of the handsetmarket. The money spent by Applecustomers on apps makes it less likelythat they will switch to Android,where iPhone apps are incompatible.

But the App Store’s success restsin selling third-party software, muchof which is now available on Googleand Amazon’s platforms. Beyond thecore operating system, Apple’s ownapps and services are less successful;Ping, Apple’s attempt at social net-working within iTunes, was quietlybut ignominiously shut down in Sep-tember. Other parts of Apple’s cloudsuite, such as iMessage, the freetext-messaging service built into iOS,and Game Center, Apple’s social-gaming hub, are prone to bouts ofdowntime.

Some analysts say these issuesare merely symptomatic ofApple’s rapid growth and canbe fixed with sufficient time,

investment and server capacity.“These do not require the applicationof magic,” says Horace Dediu ofAsymco, contrasting it with the inno-vation needed to conjure new smart-phones and tablets.

But the concern is more acutebecause of the obvious advantage thatGoogle, which was born online, has incloud services. Patrick Gibson, anindependent app developer and formeriPad engineer, touched a nerve amongApple watchers with a blog postobservation that Google was movingfaster. “Google is getting better atdesign faster than Apple is gettingbetter at web services,” he wrote.

Next year, the well-oiled Apple hypemachine will crank up again to pre-pare the way for its latest “revolution-ary” product, be it a new phone, tab-let or TV. Yet after the stratosphericsuccess of the past decade, Apple islooking for new superlatives that canexcite Wall Street as well as the highstreet. Carrying its reputation for per-fectionism into the new era of serv-ices will not be easy.

“Most companies are good at onething. Apple is good at two – hard-ware and software – and that made itthe world’s most valuable company,”says a senior Apple employee who leftthis year. “But it’s struggling withgetting good at the third.”

In the dark? Tim Cook, Apple chiefexecutive, admits the cloud takes hiscompany outside its comfort zone Getty

Apple revenues*

Sources: Thomson Reuters, Citi Research; Strategy Analytics

Forecasts

0

20

40

60

80

0

50

100

150

200

250

2005 08 10 12 15

Annual % change$bn

Apple share priceAgainst competitors ($)

2008 09 10 11 120

100

200

300

400

500

600

700

Apple

Dow Jones 30TechnologyTitans index

Global smartphonemarket share by salesQ3 2012 (% and change since Q3 2011)

33.9

16

5.2

4.8

4.5

35.5

Samsung+10.5% points

Apple+1.7% points

SonyNo change

HTC-6.0% points

Huawei+0.5% points

Others-6.8% points

* Fiscal years

“Those guys really didn’t like eachother,” says a former senior manager.“Steve kept everyone in line but with-out Steve it got worse and becamevery counterproductive. Credit to Timthat he recognised this.”

Mr Cook also recognised – belatedly– that just as Apple’s best productsblend hardware, software and serv-ices, so too must its teams. He toldBloomberg Businessweek he hadmade the changes to ensure Applewas a “fast-moving, agile companywhere there are no politics, no agen-das . . . These moves take collabora-tion to a whole different level.”

Appointing Sir Jonathan to leaddesign in what one former staffercalls a “very pixel-driven” engineeringculture shows that Mr Cook recog-nises he is a “numbers guy”, not

someone with the feel for products ofhis predecessor. “One of the chal-lenges facing Apple is that if [MrCook] is the brains, where does thesoul come from?” another formeremployee says.

Tony Fadell, who led Apple’s iPoddivision until 2008, says Mr Cook is a“really smart, brilliant guy”, but thatuntil last year “he was always behindthe scenes”. “Steve had a track recordof innovation that allowed him todraw in people when he had some-thing new,” Mr Fadell says. In recentmedia appearances Mr Cook has madegreater moves into the spotlight buthe lacks his predecessor’s magnetism.

Defenders of Mr Cook’s productnous point to the huge range of newdevices that Apple launched thisautumn, with near simultaneous rede-signs of the iPhone, iPad and iMac.

“This year has been an intenseyear on products,” Mr Cook told

Maybe it’s just the “4 percent curse”. In FebruaryApple became one of anelite group of companies

whose market capitalisation grew solarge that it made up 4 per cent of thecombined value of the entire S&P 500.Its share price peaked on September19 at $702.10, from which point – likeMicrosoft, General Electric, Cisco andother 4 percenters before it – it fell 25per cent.

This is partly the law of large num-bers: achieving such a great valuationtriggers limits for some fund inves-tors. And, after appreciating by morethan 70 per cent, many shareholders –perhaps fearing new US taxes on divi-dends and capital gains – simplydecided to enjoy their profits.

But for Apple sceptics, the swingingstock-price chart had a differentmeaning: that Apple has peaked.

Some investors are starting to won-der whether Apple’s brilliant secondact – the period of innovation thatdelivered the iPod, iPhone and iPadand made it the world’s most valuablecompany – is coming to an end.

Fourteen months since the death ofits founder Steve Jobs, Apple findsitself in a changed technological land-scape. Rivals such as Samsung andGoogle are catching up in the smart-phone and tablet businesses it pio-neered. And the internet and servicesin the “cloud” – whether web-basedapplications such as maps and mes-saging or the ability to synchronisecontent from one device to anotherwirelessly – are becoming just asimportant as shiny hardware.

At similar junctures in the past,Apple has simply produced anotherblockbuster device. But the opportuni-ties to reinvent new products such asphones or personal computers arebecoming harder to identify. A televi-

sion set, seen as the most likely inno-vation to emerge from Apple’s Cuper-tino headquarters next year, isexpected to cost $1,500, not the $400 ofan iPad or the $99 consumers can payto get an iPhone – making it harder toimagine as a mass-market product.

The iPhone is expected to bring inrevenues of $80bn this year, withanother $30bn or more from the iPad,making it harder for Apple to come upwith new products big enough tomake a difference. In the meantime,Wall Street is struggling to under-stand how much further the existingproducts can grow. China and LatinAmerica, the next big untappedmobile-device markets, offer thinnerprofits and tougher competition.

The most wounding criticism lev-elled against Apple is that its innova-tion has become incremental – its lat-est iPhones and iPads looking littledifferent to their predecessors. Thatputs pressure on Apple’s accompany-ing services to dazzle and differentiatefrom its many copycats. The AppStore and iTunes are thriving, still farahead of their competitors.

As its leadership in hardware hascome under pressure, Apple has founditself having to learn the rules of anew game. Its business still revolvesaround drawing customers to storesto buy its latest must-have gadget.But online services are increasinglyimportant in keeping customers loyal,acting as the “glue” that moves per-sonal information and media betweena family of devices and helping to setApple’s portfolio apart.

In the cloud, Apple is operating out-side its comfort zone – somethingchief executive Tim Cook acknowl-edged when he apologised for itsflawed Maps app in September.

Jobs foresaw the importance of acloud services ecosystem as a way todefend against cheaper competitors.In 2010, when visibly ill, he launchediCloud, declaring it “our next biginsight”.

“We are going to demote the PC andthe Mac to be just a device,” he said,“and we are going to move the digitalhub into the cloud.”

The idea was that Apple’s cloudwould allow iPhone owners to floattheir music and apps on to an iPad,

‘Those guys reallydidn’t like each other.Steve kept everyonein line but withoutSteve it got worse’

Product mix

The iPad mini is hot – but watch the marginsThe hottest thing this Christmasis the iPad mini. But many Wall

Street analysts have been reducingtheir forecasts for Apple’s earnings

in recent weeks – in part due to thecheaper device’s popularity.

Some analysts are worried that theheyday of Apple’s growth andprofitability is behind it. “Decelerationfor iPhone sales is a virtual certaintyin the next six to 18 months,” sayanalysts at Citigroup, noting that somesuppliers were reporting lower ordersfrom Apple. This week Citi reduced itsApple earnings forecasts for the nexttwo years by about 15 per cent andnow expect its gross margins to fallfrom 43.9 per cent in the year toSeptember to 39.5 per cent next year.

The new, $329 iPad mini has been

$1,500Expected cost of the Apple televisionlikely to be launched next year

$15mEstimated amount spent in theApp Store on a typical day

DECEMBER 21 2012 Section:Features Time: 20/12/2012 - 19:19 User: paleita Page Name: BIG PAGE, Part,Page,Edition: EUR, 6, 1

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“Without fear and without favour”

Friday December 21 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

Sleeper spies don’t do electric blanketsFrom Mr Patrick Dransfield

Sir, I greatly enjoy PattiWaldmeir’s “Shanghai Notebook”,and her recent column“Remembrance of things communist”(December 19) regarding copper bedwarmers (tangpozi) and electricblankets took me back to my days ofliving in the tiny Beijing flat of aretired chemistry professor, Song BaiBai, in the summer of 1985.

Prof Song had returned from acomfortable life in America to“rebuild the Chinese nation” in 1949.One of his prized possessions was aUS-manufactured electric blanket.

During the Cultural Revolution (1965-1976), Prof Song and his wife sufferednumerous “struggle sessions”,including a raid on their home byRed Guards, who tore apart hiselectric blanket, believing it to be atransmitting device used by ProfSong to communicate state secrets tohis American masters.

As Ms Waldmeir rightly concludes,“romanticising the revolution is onething and remembering it in ahistorically accurate way is quiteanother”.Patrick Dransfield,Kowloon, Hong Kong

Republicans actas if they had wonFrom Mr Steven M. Clayton.

Sir, Watching the fiscal cliffnegotiations is interesting; youwould think that the Republicanswere the ones that won most of theraces on Election Night because theyare the ones making all thedemands.

The election should have taughtthem a lesson that Americans wantthe parties to work together. BarackObama won’t get everything hewants, but neither should the HouseRepublicans. Time to put theAmerican people above party orideology.Steven M. Clayton,Ocean, NJ, US

Stop the press?

Start with people and culture if you want to rein in US gunsFrom Mr Michael J. Feigelson.

Sir, Jacob Weisberg is right to callfor a public health approach to gunviolence, but he doesn’t do justice tothe importance of culture change –an important component of theantismoking strategies he references(“On guns, Obama should followBloomberg’s lead”, Comment,December 19).

As a New Yorker, I found theinconvenience of smoking in the coldwas not enough to make me quit. Itwas the disappointment of a friend’ssix-year-old son and my wife’s lookof disgust when I came to bedsmelling of tobacco. The mayor’srules then made it easier to stayhealthy.

Cure Violence, a Chicago-basednon-governmental organisation, hasshown how to use this kind ofthinking to prevent shootings and

killings. They train people who arecredible and well-connected toanticipate and interrupt violentevents. Then, like MichaelBloomberg, they offer help to thosewho want to change and rally thevoice of the community as areminder that violence isunacceptable.

The result? Reductions inshootings and killings of between 41and 73 per cent.

Mr Weisberg’s formula will helpmake things better but, paired witha culture change strategy, we can doeven more to honour the victims ofNewtown and the 3,000 Americankids killed by gun violence everyyear.Michael J. Feigelson,Programme Director,Bernard van Leer Foundation,The Hague, The Netherlands

Correction● Due to a production error, it wasincorrectly stated in some editionson December 17 that Lithuania, inan October referendum, rejected aplan for a pan-Baltic railway. In fact,voters rejected one for a nuclearpower plant.

Weapons in the principal’s office are not the way forwardFrom Mr George J. Grumbach, Jr.

Sir, Louie Gohmert, a Republicancongressman from Texas, said hewished the Newtown school principalhad had an M4 rifle in her office “so,when she heard gunfire, she pulls itout . . . and takes him out and takeshis head off before he can kill those

precious kids” (“Tougher gun lawdemanded”, report, December 17).Mr Gohmert’s statement revalidatesH.L. Mencken’s aphorism that“Democracy is the theory that thecommon people know what theywant, and deserve to get it good andhard.” We can now look forward to

legislation sponsored by this Solonrequiring that school principals becombat-trained as marksmen withassault rifles as part of their jobqualifications, and be required tokeep such weapons at their schools.George J. Grumbach, Jr,New York, NY, US

Dodd­Frank penalises conf lict mineral probityFrom Mr Adam Greene.

Sir, Your analysis of the damagingunintended consequences of theDodd-Frank provisions on conflictminerals (“The quest for cleanhands”, December 19) is fullyconsistent with nearly all reportsfrom central Africa, which show thatDodd-Frank has indeed backfired bycreating a de facto embargo anddriving even more of the mineralstrade underground.

Barney Frank is absolutely wrongin saying that the embargo was

caused by uncertainty over Securitiesand Exchange Commission rules. Thetrue cause is the legislation itself,which created huge disincentives tosourcing from the DemocraticRepublic of Congo – in fact, all theSEC rules do is specify how thosedisincentives will work in practice.Rather than encouraging responsiblesourcing from the DRC – the OECDapproach – Dodd-Frank imposessignificant penalties for doing so.Indeed, the few efforts to sourceresponsibly from the region are

happening in spite of, not because of,Dodd-Frank.

Unfortunately, this situation isunlikely to change as long as theDodd-Frank provisions continue topenalise, rather than encourage,responsible sourcing from theregion.Adam Greene,Vice-President, Labor Affairs andCorporate Responsibility,United States Council forInternational Business,New York, NY, US

Press freedom andthe constitutionFrom Mr Leo Slaggie.

Sir, William M. Pinzler’s suggestion(December 19) of a confiscatory taxon bullets as a way to control gunsis a useful proposal but not a newone. The late Senator PatrickMoynihan noted that the secondamendment establishes only a rightto keep and bear “arms”, not to keepand bear ammunition. Moynihanproposed banning ammunition toachieve complete gun controlwithout a constitutional problem. Inote along the same lines that thefirst amendment protects only“freedom . . . of the press”. It saysnothing about ink and paper. Thissuggests an entirely constitutionalapproach to control annoyingjournalism.Leo Slaggie,Falls Church, VA, US

Memo to Mario:cheap funding forIrish homeownersFrom Mr Conor McCoole.

Sir, Your suggestion that Ireland’sbank bailout debt obligation shouldbe mutualised by transferring it tothe European Stability Mechanism iscommon sense (“Let Irelandsucceed”, editorial, December 19).But spare a thought for haplesshomeowners who purchased theirhomes in the past 10 years. Theyhave suffered numerous blows:austerity, negative equity, fallingincomes, higher taxes and mortgageinterest rates that are many timesthe official euro interest rate of0.75 per cent. The dire consequencesfor the economy are easy to foresee.The damage to household wealth willbe life-long.

Here’s a suggestion for MarioDraghi, the newly minted FTPerson of the Year: considerproviding 20-year, ultra-cheap, fixed-rate funding direct to thosehomeowners suffering negativeequity as a result of purchasing theirown home in the past 10 years.Beneficiaries should be required toprovide evidence of their homepurchase prices on the new Irishproperty price register. Cheapfunding should be limited to 80 percent of the original home purchaseprice, thereby excluding equityrelease loans. Homeowners should beallowed to keep this cheap fundingeven if they sell and move.

Such a scheme would provide ameasure of direct, targeted relief(and a little peace of mind) tomiddle-class owner-occupiers who aresuffering most of all. It would helpstabilise household wealth, promoteeconomic recovery, reduce loandefaults and strengthen publicacceptance of the troika’s austerityprogramme. And Mr Draghi couldbe our Taoiseach after his stint inthe European Central Bank: “Hail,Mario” the plain people of Irelandwill say!Conor McCoole,Singapore

COMMENT ON FT.COMFT AlphavilleCardiff Garcia: money markets closeto getting unTAGgedwww.ft.com/alphaville

Material World blogVanessa Friedman: is reality televisiona route to designer success?www.ft.com/materialworld

New York Notebook

At least 20 reasonsto impose a gun taxIt is a rare corporate press releasethat inspires the reader. But suchwas the case this week when Iperused a statement issued by theprivate equity group CerberusCapital Management.

Cerberus said it would try to sellthe Freedom Group, a collection ofleading firearms and ammunitioncompanies that includes Bushmaster,maker of the military-style rifle thatAdam Lanza used last week to kill26 people, including 20 children, atthe Sandy Hook Elementary Schoolin Newtown, Connecticut.

Cerberus said it was “shocked anddeeply saddened by the events”. Butit also described itself as havingmade a “financial investment” inFreedom six years ago, and that gotme thinking.

For those who do not speak thelingo of Wall Street, investors can beclassified in various ways. “Strategic”investors have a background in thebusinesses in which they invest; bycontrast, “financial” investors justwant a return. By putting itself inthe latter category, it seemed to me

that Cerberus was saying it still didnot see itself as a gunmaker eventhough it had owned many of thebiggest names in the business foryears; for all the private equitygroup cared, it might as well havebeen involved in the production oflollipops or lingerie.

The ability to think in this wayhelps to explain why people on WallStreet make the big bucks. It is notnecessarily because they know somuch; it is because their focus is sonarrow. Where other people see asemi-automatic rifle capable ofkilling 20 children in a matter ofminutes, they see a cash flow.

The presence of a Cerberus in thebusiness of selling killing machinessuch as the one that Lanza usedsuggests there is a pretty penny tobe made in this trade. Otherwise,the “financial” folks would besomewhere else – and that has clearimplications for Americans lookingfor ways to keep their children safe.

As I read the Cerberus statement,it occurred to me that we need asanctions regime that will make itless profitable to sell weapons ofmass destruction to civilians. Weshould impose heavy taxes on thesale of every military-style rifle,every automatic handgun, every30-round magazine, and – if legalexperts say it is possible – every TedNugent concert ticket, compact discand eight-track tape (on the groundshe can be seen as the MahmoudAhmadi-Nejad of the gun-clown set).

The policy could be designed tokeep the hunters happy. The goalwould be to discourage the mass

production and aggressive marketingof weapons that can kill largenumbers of people in a short time.We don’t need a business thatproduces the kind of results we sawin Newtown.

By focusing on the profitability ofthis weapons trade, gun-controladvocates would also be able toavoid a big historical obstacle: theUS constitution. Its poorly-editedsecond amendment reads: “A wellregulated militia, being necessary tothe security of a free state, the rightof the people to keep and bear arms,shall not be infringed.”

Americans have long arguedabout what this means. For my part,I have trouble seeing how a well-

regulated militia has a place for atwisted soul such as Lanza, or forthat matter, his late mother, whomade sure that there was plenty ofwhizz-bang weaponry in the homethat she shared with a disturbedchild. But other people disagree andI suspect that enough of them wearrobes at work to make my thoughtson this question irrelevant.

I would just refer gun-controladvocates to the part of theconstitution that can be their friend:article I, section 8. It says: “TheCongress shall have the power to layand collect taxes, duties, imposts andexcises.” I don’t see where guns orammunition are excluded.

There would be no shortage ofgood uses for the revenue raised.Given the precarious fiscal situationof the US, I imagine some of themoney would inevitably be puttoward reducing the federal budgetdeficit. But it would only be right touse some of the funds to help thevictims of gun violence and theirfamilies, to buy back guns that arein circulation, or to provide mentalhealth services to all those disturbedyoung men who seem to be festeringin our suburban basements.

As for the level of the gun tax, if Ihad my way, it would be crippling –100 per cent, or 1,000 per cent, of thepurchase price of the kind of rifleLanza used. But again, I can’t seethat happening. A more practicalsuggestion would be to start theadditional tax at 20 per cent – 20 forthe 20 children who died.

gary.silverman@ft.com‘It’s the consumerism I hate’

Gary Silverman

Challenges forKorea’s new leaderPark Geun­hye must go beyond vague promises

The quasi-mythical status of SouthKorea’s president-elect Park Geun-hye – her father ruled with anauthoritarian hand until his assas-sination in 1979 – both won andlost her votes in Wednesday’s pres-idential poll against Moon Jae-in,who was imprisoned as a studentprotester. After edging a narrowvictory, Ms Park promised to reachacross this historical divide. Buther presidency must be judged asmuch on the details of her policies,on economic reform above all, ason lofty but vague promises.

The campaign’s theme was “eco-nomic democracy”, in recognitionof the growing dissatisfaction withan economic model based on themighty chaebol conglomerates. Theextreme dominance of manufactur-ing by a handful of big companieswas instrumental in South Korea’sstunning industrialisation. How-ever, continued growth requires amore open economic structure.

The chaebol have not spread thewealth equitably. Socially and eco-nomically, Koreans are segregatedby a dual economy with few cov-eted jobs in the chaebol-controlledmanufacturing sector and a swathof unproductive jobs in an under-developed service sector. Fairnessand cohesion aside, the model maynot be nimble enough to do as wellin an economy where value is cre-ated by information and innova-

tion as it did in a simpler indus-trial era. There is too little spacefor entrepreneurs at present. Thisrisks perpetuating the divisionsthat mar the old economic model,while losing the growth that mayonce have redeemed it.

Ms Park vows to enforce compe-tition rules more strictly againstthe chaebol. Equality before thelaw would be a good and overduestart: chaebol leaders tend to be letoff too lightly even for provedfraud. But the new presidentshows signs of too much deferenceto the conglomerates. She hasbacktracked on ending cross-share-holdings that allow founding fami-lies to keep control with verysmall equity stakes. She shouldreconsider.

Though the election focused ondomestic policy, Ms Park also faceschallenges with North Korea. Shecontinues a traditionally toughstance towards Pyongyang. Whileneither that nor the rival “sun-shine policy” ever met with muchsuccess, her demand for “progressin denuclearisation” as a conditionfor talks is sensible. Yet sheshould recall that keeping theNorth engaged in talks lessens thethreat of conflict, even if only mar-ginally. Her political ancestryallows her to trade concessionswith the North in a way other poli-ticians in the South cannot.

Love your gut bugsBacteria could play a role in the fight against obesity

Biologists are shining a scientificspotlight on previously neglectedinhabitants of our bodies. The100tn bacteria that populate anaverage adult, living mainly in theguts, should be treated with morerespect, recent research shows,because they play a vital role inmaintaining human health.

The latest study by Chinese sci-entists provides new evidence thatthe different types of microbes inthe gut can help to explain whysome people grow fat and othersdon’t. The microbiome, as it isknown, turns out to be a risk fac-tor for obesity, alongside eatingtoo much, exercising too little andhaving the wrong genes. Ourdigestion has evolved to work withthe help of a kilogramme or so ofmicrobes; the way we extract calo-ries from food and how fast ourappetite is satisfied – determinantsof how much weight we put on –depend on the balance between the200 to 300 bacterial species thatlive in a typical human gut.

As several recent studies haveshown, this balance depends criti-cally on what we eat. People livingon a modern western diet have avery different microbiome fromtheir pre-industrial ancestors. Anda study of elderly people in Ire-land, published in the journalNature this summer, showed adirect relationship between diet,

bacterial diversity and wellbeing.Although more research is neededto prove the point, evidence isgrowing that a varied diet, includ-ing plenty of unprocessed fruit,vegetables and cereals, promotesthe growth of beneficial bacteria inthe human body – indicatinganother possible theme for publichealth campaigns.

At the same time scientists atReading University and elsewhereare taking a more directedapproach. They are designing andtesting “prebiotic” dietary ingredi-ents to select for a beneficial com-munity of gut bugs that reducesthe risk of obesity and associatedproblems such as diabetes.

Appreciation of the importanceof nourishing a healthy humanmicrobiome should also lendweight to a quite different publichealth campaign: the drive to cutover-prescribing of antibiotics fortrivial or inappropriate infections.Although antibiotics are intendedonly to kill pathogens, there is col-lateral damage to other microbes,upsetting the bacterial balance.

The message for the holidayperiod, as you eat your festivefoods, is to remember that you arefeeding not just yourself but allthe bugs in your body. Treat themto a varied diet – and do not poisonthem with unnecessary medica-tion.

Banking reformCommission points to shortcomings in UK coalition’s bill

When the Parliamentary Commis-sion on Banking Standards wasestablished in July in response tothe Libor scandal, it was asked tocomment on the government’s pro-posals for banking reform. Thecoalition wanted thoughts by theend of the year so it could feedthem into its banking bill. This isbased on the conclusions of theVickers commission, and recom-mends organising large banks intoretail and capital markets units.

Under Andrew Tyrie, its knowl-edgeable chairman, the commis-sion has long exhibited an inde-pendent streak. Some of the grill-ings it has administered to formerbank chiefs have come closer thanany other post-crunch investiga-tion to achieving the reckoningthat might allow people to put thecrisis behind them. But it has alsoworried a government that isunwilling to reopen the Vickersproposals. George Osborne, thechancellor, last month urged thecommission not to “unpick theconsensus” around the bill.

The report does not quite dothat. Nonetheless, it expressesscepticism about the efficacy of theproposals and suggests ways inwhich they could be strengthened.

The concerns are largely sensi-ble. There are, for instance, realquestions about whether theringfence can be enforced between

two types of banking under thesame roof. Incentives to pierce thefence are impossible to eliminate,making it vulnerable to slips inbankers’ probity or regulators’ per-sistence. The commission is alsoright to fret about the independ-ence of retail subsidiaries withinbanking groups. The risk-takingculture of trading is not only anti-thetical to the conservative valuesthat should govern retail banking;it is also the dominant strain. Sowithin a single organisation theformer is always likely to seepthrough and overwhelm the latter.

The commission’s answer is to“electrify” the fence. This wouldmake it subject to periodic review;impose new legal duties on bankdirectors; and reserve the power,should banks abuse the rules, toenforce full separation. A simplerapproach – and one the FT favours– would be to split banks cleanlyas a first step rather than a back-stop. While this might not avoidthe need for continuing policing, itwould solve the cultural problem.

A split may make it less likelythat banks need to be rescued withtaxpayer money. But, as the reportobserves, it will not rid us of sys-temically significant banks. Theauthorities need the confidenceand tools to take apart a big loss-making bank. This still remainssome way off.

Copper consumers cannot plan whilefinancial sector is distorting the priceFrom Mr Simon Hunt.

Sir, All copper consumers knowthat the officially reported copperprice bears no resemblance to thereal activities of the metal as anindustrial material. The price isbeing distorted by the activities ofthe financial community by buyingcopper and largely warehousing itoutside the reporting system. Whythen are there a reputed 1m tonnesplus of copper cathode sitting inbonded warehouses in China?

By approving JPMorgan’s copperexchange traded fund (report,December 18), the Securities andExchange Commission has sidedwith the financial community at theexpense of industry. While thetonnages to be held by the bank andwith the probable approval ofBlackRock’s copper ETF are inthemselves not large, they can havea significant impact on prices at themargin.

The real issue is this: increasingly,

copper has become an intrinsic partof the money game, just another unitto securitise regardless of the impacton industry. Copper consumers nowsee even more clearly the demise ofcopper as an industrial metal. Themetal has lost at least 3m tonnes tosubstitution in all its forms over thelast seven years. That figure risksgetting even larger over the nextseven years, not just due totraditional substitution but to theintroduction of new technology.

Copper consumers cannot plan theirfuture on the whims of the financialsector. Globally, including China,they are accelerating their efforts todesign copper out of their systems.Another financial bubble is beingbuilt around copper with perhapssome 5m tonnes being held outsidethe reporting system. This bubblelike all others will burst one day.Simon Hunt,Simon Hunt (Strategic Services),Weybridge, Surrey, UK

From Mr Randall Greene.Sir, As a Life Member of the

National Rifle Association, I’dhazard the guess that theorganisation was not immediate inits response to the tragedy inNewtown, Connecticut, in an attemptto allow space for grief and thegathering of facts – a space which,as one can read in the events of thispast week, is of little concern topoliticians.

While some enjoy target-shootingwith military-style weapons as sport,a basic tenet of the American psycheis that, when pressed to the extreme,the assurance of domestic security isin the hands of its citizenry – notthe government. Dialling “911” maycatch the culprit, but it’s unlikely toprevent the crime.Randall Greene,White Plains, NY, US

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FINANCIAL TIMES FRIDAY DECEMBER 21 2012 ★ † 9

COMMENT

collided with the uncomfortable factthat the other 26 members are notso keen on the idea. Ms Merkel hasbeen offended by a clumsy attemptto blackmail the eurozone intomaking concessions in return forBritish consent to closer integration.Mr Hollande has already had his fillof perfidious Albion. Mr Cameron isleft promising a referendum thatcould leave Britain stranded on themargins of its own continent.

And finally . . .

Play fair(ish)West and east, north and south,democratic and authoritarian – thebiggest threat to incumbent leadersflows from a growing resentmentabout unfairness. In advancedeconomies, the perception (and oftenthe reality) is that the wealthy havegrabbed all the gains of globalisationwhile the rest have been handed theburden of austerity. If there was asingle spark for the uprisings in theMiddle East it came from popularrage at corruption at every level ofsociety. Mr Xi has warned that graftcould overturn the rule of China’sCommunist party. He is right. Noone expects an egalitarian utopia,but middle classes old and new arelooking with some menace at theprivileges of the 1 per cent.

philip.stephens@ft.com

It is no time to give up on economic liberalismTony Blair and Bill Clinton mayhave come from a different end ofthe political spectrum, they made noattempt to reverse course. Thetraumatic event was of course thefinancial crisis that broke out in2007-08 and administered a fatal blowto economic liberalism.

Or did it? As far as normal goodsand services are concerned, there isstill a great deal to be said for givinga leading role to prices and profits.But for financial markets economicliberalism, at least in the form wehave known it, has proved fatallyflawed. The tendency of capitalisteconomies to boom and bust isintimately connected with thatfailure. As almost every governmentand central bank is committed to itsreform, I would for the presentconcentrate on other aspects.

The basic case for competitivemarkets is, first, that they provideconsumers with what they wish tohave rather than with what someauthority thinks would be good forthem. Second, they provide someguidance on how goods and servicesshould be produced. It would nothave been sensible to build the GreatWall of China with 21st-century

electronic equipment when therewere millions of underemployedlabourers ready to hand. Thirdly,allowing innovators to keep some ofthe fruits of their activities mayprovide some incentive to progress.In a priori theory, competitivemarkets do not have to be capitalistones. There have been numerous

blueprints, from market economiesbased on state ownership to workers’co-operatives. But they have notreally got off the ground.

An example of misunderstanding isa book that appeared this year withthe strange title Masters of theUniverse by Daniel Stedman Jones. Itwas about free-market economists,such as Friedrich Hayek and MiltonFriedman and their supposedlymalign influence over governments.

It is very thorough, honest accordingto its lights, but thoroughlymisleading. For the thinkers inquestion are not just politicians indisguise. So far as they had anoverriding policy or agenda, it was toreduce the influence of coercion inhuman affairs. What they certainlydid not wish to do was to rule theuniverse either directly or throughtheir political disciples.

There are, of course, numerousexamples of market failures. Thereare the famous “externalities”.Factories do not have to pay for thedamage caused by smokingchimneys. Owners of smart frontgardens receive no benefit from theenjoyment conferred on passers-by.

There is also always thetemptation of successful capitalists totry to become monopolists. There arecorrectives using markets and prices.Examples range from the auctioningof planning permits to anti-cartellegislation. Free trade is often themost effective corrective. Above all,however, critics of market failuresare offset by political failures.Governments often have neither theincentive nor the knowledge toimpose effective correctives.

There have beenblueprints for economiesfrom state ownership toworkers’ co­operatives.They have not worked

Shale gas exports will benefit America and its alliesAmerica has sufficient resourcesavailable to satisfy domestic needsfor more than 90 years.

America could now become a netexporter of liquefied natural gas by2016. Yet this prospect has arousedconcern among some US industrialenergy users, who are eager to retainthe competitive advantage theycurrently enjoy from low energyprices. The fear is that LNG exportswould lead to higher natural gasprices in the US, even thoughshipping and liquefaction costs meanforeign consumers would always paymore than domestic buyers. Some inUS industry are now opposed to anyLNG exports at all.

We believe, however, that LNGexports can buttress US geopoliticalleadership and trade, while at thesame time continuing to support lowdomestic natural gas prices and arenaissance in domesticmanufacturing. In addition LNGexports offer the potential for lowerglobal carbon emissions.

The US Department of Energy hasconfirmed this view in a new reportexamining the wisdom of exportingLNG. The report, which echoesmany other studies, concludes that

exports would broadly benefit theUS economy with little impact ondomestic natural gas prices. It statesthat LNG exports could generate upto $47bn in new economic activity inthe US by 2020. The more gasexported, the greater the benefits tothe US, the report concluded.

The reason is simple. Today muchnatural gas is flared or shut inbecause there is not a domesticmarket for the gas produced as abyproduct of exploration andproduction of liquid hydrocarbons.By capturing this lost natural gas forexport, the US would ultimatelyreduce price volatility, bolster itslong-term reserves and enable itsnatural gas sector to reach itsgrowth potential.

Meanwhile by becoming anexporter, the US would fill a vital

role for its allies in Europe and Asia,many of which are dangerouslydependent for natural gas on foreignpowers frequently hostile to USinterests. Reliance on Russian gas inUkraine and the EU would be likelyto diminish, for example.

Asian demand for natural gas isgrowing rapidly. In the wake of theFukushima disaster, the need forLNG in Japan, already the world’slargest market has grownconsiderably. China and India, bothheavily dependent on coal to meettheir energy needs, are looking tocapitalise on their own shaleformations but will not be able tomove swiftly enough to meet near-term demand.

The environmental considerationsof these developments are alsoimportant for US policy. Burningnatural gas to generate powercreates 50 per cent fewer carbonemissions than burning coal. In theUS carbon emissions fell to 1992levels in the first quarter of 2012,owing mainly to a transition fromcoal to gas. Many developing nations,such as China and India, would liketo follow suit but lack access to theresource. Exports from the US would

help to support this transition tocleaner fuels.

Armed with its new report, as wellas mounting data that affirm thebenefits of natural gas exports, theDoE should approve the applicationspending for LNG export terminals.To date, Sabine Pass in Louisiana isthe only terminal to receive DoEapproval. Ultimately the FederalEnergy Regulatory Commission willdecide which projects are technicallyviable and investors will decidewhether to provide capital, but moregreen lights from the DoE wouldgive US trade partners confidence toadopt natural gas in lieu of higheremitting fuels. It would also affirmAmerica’s commitment to free trade.

After decades of energy insecurity,the US has abundant domesticresources to serve its own naturalgas needs today and far into thefuture. Natural gas exports cannotrevive the US economy alone butthey can help lead us toward a morerobust energy future, a worthy andachievable goal.

The writers were US secretaries ofenergy under Presidents Bill Clintonand George W. Bush respectively

Bill Richardson andSpencer Abraham

Samuel Brittan

This is a good time to ask whatis left of an outlook known toits enemies as neoliberalism

and by at least some of its friends asjust economic liberalism. One cannotbe too careful in choice of wording.For neoliberalism was originally theself-chosen name for a group formedjust before the second world wararound the US commentator WalterLippmann and which advocated,among other things, making greateruse of market forces in economicpolicy. It has only more recentlyacquired pejorative associations.

Roughly speaking, the quartercentury after 1945 was not apromising time for economicliberalism – except perhaps in WestGermany where Ludwig Erhard wasthe guiding spirit of the so-calledeconomic miracle. The tide turnedtowards economic liberalism in thelast quarter of the century,symbolised by the leadership ofRonald Reagan and MargaretThatcher in the 1980s. The approachlingered on even after the departureof these charismatic leaders. While

influence has been reduced toobstructionism at the UN. Israel isbeginning to look very much alone.

Do somethingThe most frequently forgotten lessonof politics is that doing nothing is apolicy choice – and one that can beevery bit as risky as being decisive.France’s President François Hollandeis among those who would do well torecognise the dangers of inaction. Myfriends in Paris tell me that thepresident is fully apprised of theurgent need to restore economiccompetitiveness in order to avoid thefate of some of France’s eurozonepartners. So far, however, MrHollande has been content to do notvery much. Change forced by a crisisof confidence in the markets wouldbe altogether more painful – for thepresident and for French voters.

There is a broader lesson here forthe eurozone. Angela Merkel mayhave emerged as Europe’sundisputed leader, but herobsessively cautious approach to theeuro crisis has come with a sizeableprice tag. If the currency now lookssafe, it is because of the activismof the European Central Bank’sMario Draghi. The danger is thatMr Draghi’s audacity has encouragedgovernments – creditors and debtorsalike – to put off again theuncomfortable choices needed toensure sustained recovery.

Walk and . . .Too many leaders think they can doonly one thing at once. Theysuccumb to the politics of either/or.It should be both/and. The messagefrom Washington is that Mr Obamahas set the rebuilding of Americaas the ambition for his second term.Intractable foreign-policy issues –most obviously the stand-off betweenIsrael and the Palestinians – aredestined to remain on the backburner. Didn’t someone once say aUS president should be able to walkand chew gum at the same time?

New Year resolutions are made tobe broken. So politicians shouldspare us the customary cascade ofempty promises on January 1. Thereis no harm, though, in drawinglessons from experience. In thisspirit, here are a few rules of theroad political leaders might usefullyponder as they map a route for 2013.

Make friends and . . .America’s wars in Iraq andAfghanistan have testified eloquentlyto the limits of hard power. Militarymuscle will always matter, but in aworld tightly threaded by economicinterdependence, making friends andinfluencing people is every bit asimportant.

Expectations are that Xi Jinpingwill take a harder line than thedeparting Hu Jintao in assertingChinese power. Tensions betweenBeijing and its neighbours overconflicting claims in the South andEast China Seas are unlikely to beeased by the election in Japan of themore nationalist government ofShinzo Abe.

Mr Xi, however, might reflect onwhat has happened since China castaside Deng Xiaoping’s bide-your-timeapproach to international relations.China’s neighbours have turnedagainst it and President BarackObama’s “pivot” has seen America’sreturn as a Pacific power. Chinacannot wage economic war againstJapan without significant cost toitself. Even great powers need allies.

Elsewhere, Russia’s Vladimir Putinand Israel’s Benjamin Netanyahuhave often seemed to exult inisolation. The result? Russia’s global

Getting the economy right is goingto be at the top of every leader’sattention. The reality, though, isthat the world will not stop to allowMr Obama to tend to America’sdomestic challenges. For one thing,Mr Netanyahu looks pretty muchdetermined to pull the US intoanother Middle East war – this timeagainst Iran. For another, much as itwould sometimes like things to beotherwise, the US remains theindispensable power. The unipolarmoment may have passed, but thereare few serious problems around theworld that can be solved without USengagement.

Think aheadHere’s one for David Cameron,Britain’s prime minister. The haplessMr Cameron has made the mistakeof failing to recognise that whatmight seem clever tactics often drivepoliticians into strategic cul-de-sacs.After a year spent appeasing andoccasionally pleasing the hardlineeurosceptics in his Conservativeparty, he has suddenly woken up tothe fact that Britain is heading forthe exit of the EU.

I do not think that this was MrCameron’s aim. But casual promisesto the eurosceptics that he cansecure “a new settlement” allowingBritain to pick and choose in itsrelationship with the bloc have

Export permits wouldgive US trade partnersconfidence to adoptnatural gas in lieu ofhigher emitting fuels

The biggest flaw in marketliberalism is in the distribution ofincome and wealth. For a long timethe degree of concentrationfluctuated around a fairly stable rate.But in the past two or three decadesit has increased markedly, making itmuch more difficult for supporters ofcapitalism to argue that a rising tidefloats all boats. We could live withthis situation in which the top 1 percent of US families owned 7-8 percent of US incomes, as in the early1980s, but hardly when they aregetting 18 per cent as they are saidto do now. The respectable academicresponse is to try to correct thesituation through the tax and socialsecurity systems. But this may bemore difficult in a world strugglingto achieve genuine mobility of labourwhere emigrants could overwhelmthe redistributive apparatus.

This has not happened yet. But weneed to prepare. The hard truth isthat tensions can develop betweenfree migration and other economicfreedoms. But for all the loomingproblems, it is still untrue that thenanny state knows best.

www.samuelbrittan.co.uk

If there’s a bright spot in thegloomy recent history of the USeconomy, it is the expansion of

our energy sector. A plentiful andinexpensive supply of natural gasfrom shale rock has led to cheaperelectricity for consumers andindustry, the revival of USmanufacturing and greater USenergy independence.

A decade ago, natural gasproducers worried that America’ssupply was running dangerously lowand imports would be the nation’sonly salvation. No more.

Thanks to new drillingtechnologies and an abundance ofshale gas, US “proven” natural gasreserves surpassed 300tn cubic feetin 2010, and technically recoverablenatural gas is estimated to exceed2,200tcf, according to the EnergyInformation Administration. Thisrepresents an increase of 61 per centfrom the agency’s estimate fouryears previously. Given US naturalgas consumption of about 24tcf,

New yearrules of theroad forworld leaders

Middleclasses oldand neware lookingwith somemenaceat theprivilegesof the1 per cent

Philip Stephens

The trade is known as thewidow-maker because it hasbeen financially fatal for so

long. Generations of gunslingermacro traders have met theirnemesis by shorting Japanesegovernment bonds. They walk incool and confident, armed withPowerPoint presentations. They leavetown horizontal, soaked in red ink.

The rationale was alwayscompelling – why should Japan havesuch absurdly low bond yields whenits debt to gross domestic productratio is among the highest in theworld, government spending isroughly twice tax revenues and thepopulation is rapidly ageing? Yetthe result was always the same.At whatever yield the call was made– 3 per cent in 1996, 2 per cent in2002, 1 per cent in 2011 – it alwaysfell further, and the bet lost money.

Back in the day a neophyteinvestment analyst was sometimesdispatched to the trading desk todemand an explanation. Thestandard response was a sarcastic“more buyers than sellers”.

That is the best explanation ofwhat has been going on in theJapanese bond market for the past15 years. It also describes what hasbeen happening in global bondmarkets since 2008, when the worldstarted turning Japanese.

Private sector deleveraging,distrust of risk assets, loss of faithin growth, broken banks – thesehave all contributed to the surge indemand for government paper.

The eurozone turmoil appeared tooffer an alternative narrative – thatexcess debt led to sovereign debtcrises – but this was illusory sinceGreece, Spain and the others are notsovereigns. Wherever governmentshave retained control over their

currency, markets have shruggedoff deficits, rating downgrades andthe prognostications of doomsters.

Following the Japanese template,bond yields have fallen even as debtlevels have risen. This has been soin the developed world and in thedeveloping world; in countries thathave current-account surpluses suchas Germany, and those perpetuallyin deficit such as the US and UK.

In reality, bond markets arereflecting economic fundamentals.Risk-free rates should approximatenominal GDP growth, which hasbeen in sharp decline globally.With governments caught betweenstimulus and austerity, andmonetary policy achieving littletraction, bonds have looked thesafest bet.

The great investment question for2013 is whether change is in the airand the deflation trade is over.

In Japan, the election victory ofShinzo Abe means the last bastionof hard money has fallen. The nextgovernor of the Bank of Japan, to beappointed in the spring, will be adove. A shift towards inflationtargeting is likely. There will be lessenthusiasm for driving the economyoff a fiscal cliff, as Yoshihiko Noda,the outgoing prime minister, riskedwith planned tax rises.

Globally, the move to soft moneyis gathering impetus – as seen in theUS Federal Reserve’s move to tiemonetary policy to unemploymentand by favourable talk of nominalGDP targeting by the Bank ofEngland’s governor-designate.

Will this be enough to change the“more buyers than sellers”paradigm? In the first instance,probably not – greater central bankactivism will mean greater purchasesof government bonds by those banksin the short term.

But in the medium term it is likelythat governments will succeed ingenerating higher inflationaryexpectations. The aftermath of theglobal financial crisis shows thatonce radical options can quicklybecome mainstream policies. Ifcurrent policies do not produceresults, new ideas are waiting in thewings – such as the outrightcancellation of bonds held on centralbank balance sheets.

In fact, consecutive waves ofquantitative easing have alreadysucceeded in lifting inflationaryexpectations as measured by thebond markets’ break-even rates.The US rate has risen from negativein the aftermath of the Lehmanshock to the average levels of 2000 to2008. Even in Japan, five-yearinflationary expectations have risenwell above the bond yield. Almosteverywhere, investors in governmentbonds are facing negative real yields– an unnatural and combustiblesituation. In Japan this could be thewidow-maker’s last ride. If so, therepercussions will be felt morewidely. World bond markets havehad it too good for too long.

The writer is a Tokyo-based analystat Arcus Research

Peter Tasker

The Japanesebond marketmay havemade itslast widow

Neophyte investmentanalysts would receivethe standard andsarcastic response ‘morebuyers than sellers’

COMMENTON FT.COMBBC reveals asorry tale ofmanagementHigh pay at publicbodies stinks –they have takenthe worst practicesof the privatesector and ignoredthe best, saysAndrew Hill

www.ft.com/comment

DECEMBER 21 2012 Section:Features Time: 20/12/2012 - 19:41 User: aldersonm Page Name: COMMENT USA, Part,Page,Edition: EUR, 9, 1

10 ★ FINANCIAL TIMES FRIDAY DECEMBER 21 2012

Apple has come up with itsfirst redesign of the iMac inthree years as it facesincreasing competition inthis hottest of categories –the all­in­one PC.

In just three examples Ireviewed recently, Lenovo’sA720 reset the bar forthinness and versatility – itsstand will lie flat or turn themonitor into an easel;Sony’s Vaio Tap 20 has atouchscreen and internalbattery that allow it to becarried around like anoversized tablet; andHewlett­Packard’sSpectreONE competes withthe iMac on classy looksand is only 1.15cm thick.

Apple does not believeconsumers want to usetouchscreens on laptopsand PCs, nor does it favourversions that transform intodifferent devices, so thenew iMac stands up straightand leaves touch gesturesto its excellent MagicTrackpad accessory.

The most obviousimprovements are a thinner,lighter design and agorgeous screen in either21.5in (from $1,299, £1,099in the UK) or 27in (from$1,799, £1,499) sizes.

The new iMac is 80 percent thinner than itspredecessor, according toApple, and only 5mm thickat its edges. However, thebowed back thickens toaround 4cm in the middle.

To achieve its slimmerfigure, Apple has abandoneda DVD and CD slot. Thismay be the way things areheading as we use memory

Chris Nuttall picks his favouritefrom the crop of new apps

What it is: The Orchestra for iPad($13.99, £9.99)

Why you should try it: Apple has re­enabled gifting ofapps in iTunes just in time for the holidays and therelease of The Orchestra, another classic from TouchPress. Extracts from composers ranging from Beethovento Stravinsky are played by the Philharmonia Orchestra.You can watch these on split­screen video, bring up asynchronised score and touch a map of the orchestrato hear particular sections playing.

Planet of the apps

Chris NuttallPersonaltechnology

There is only one winnerfor each series of The GreatBritish Bake Off, one“amateur baker” who iscrowned Britain’s best. Thisyear it was 23-year-old lawgraduate John Whaite whoclinched the final of thetelevision show byhairdrying his chocolate-iced cake for a high shine.He promptly signed a bookdeal with Headline andJohn Whaite Bakes willappear early next year.

But Mr Whaite will notbe the only one to enjoy aslice of success. The hitBBC2 TV programme ishaving a benevolenteconomic effect far beyondthe onscreen participants.

“[If I wanted to make] acouple of hundred quid amonth as spending moneyit would be fine,” she says.She has stopped the classesto pursue more lucrativeroles with Sainsbury andQVC. She also produced anebook, that went straight tothe top of the Kindledownloads for baking.

And Edd Kimber, self-styled as “the boy whobakes” and the first winnerof GBBO back in 2010, sayshe “definitely struggled”financially for the first yearfollowing his win. Like MrWhaite he was offered abook deal and he publishedhis second title thisSeptember. He has alsolaunched the EddiblesBakery stall on MaltbyStreet market in southLondon. “I made a livingthis year,” Mr Kimber says.

Nevertheless, it’s betterthan his old job as a bankclerk: “I like the fact that Ido something I love, and Ihave a career from it.”

The last word

A TV­generatedcraze for cookingis inspiring newventures, writesNatalie Whittle

The show’s experts,cookery doyenne MaryBerry and professionalbaker Paul Hollywood,have felt the bakingbounce keenly. AfterGBBO finished in October,Mr Hollywood’s book Howto Bake saw a threefoldincrease in sales onAmazon. Ms Berry saw afivefold Amazon salesincrease for her 2009 bookMary Berry’s Baking Biblefrom when the latest seriesstarted in August.

If baking is an inherentlydomestic art, and therecession a period whenpeople stay at home towatch TV and/or makecakes, bread and pies,there is some logic to thistrend. Trade showorganiser Luke Collingscertainly saw the broaderpotential of baking’s newpopularity: “My wife wasvery much into the BakeOff and it made me wonderif there would be demand[for a show]”. He lined up

brand featured in GBBO)food mixers every hourbefore Christmas.

At John Lewis, sales offood mixers are up 62 percent and demand for bread-makers up 29 per cent.Silicone bakeware saleshave increased 126 per centyear on year. Marks and

British stay­at­home economy helps baking businesses risesponsors and booked MsBerry and Mr Hollywood tomake appearances. TheCake & Bake Show atEarls Court ExhibitionCentre drew 21,000 visitors,with a Manchester date setfor next year and a secondLondon show. Mr Collingssays he covered costs thisyear but forecasts a profitfor 2013, and has hopes fora supermarket tie-in.

The baking bounce sendspeople shopping in all sortsof ways: a Zara bomberjacket worn by Ms Berryin one episode sold out andbaking equipment saleshave increased. In one showof this series, contestantswere asked to build “show-stopping” gingerbreadedifices (Mr Whaiterecreated Rome’s coliseum).In the following days,Selfridges in London saw ajump in sales of gingerbreadhouse kits and year onyear sales rose 26 per cent.The store also estimates itwill sell 20 KitchenAid (a

Spencer, Debenhams andJ Sainsbury have reportedsimilar rises.

There has also been aflurry of classes in bakingskills. Le Cordon Bleu, theclassic cookery schoolbrand, has opened aflagship site in London andFrench baker RichardBertinet has expanded hisbread-making school with abakery shop in Bath.

But bakery businessfounders beware: this is anarea where the facilitiesavailable dictate profit, asHolly Bell, a GBBO runner-up in 2011 learnt. Herformer milieu wasadvertising, so Ms Bellrecognised her own profilewould not be enough to sellclasses. “I knew I had touse the Bake Off brand toleverage the business,” shesays. Demand was strongand immediate; her weeklycake-decorating classes werefull. But, as she rentedkitchen space to teach, itwas hard to make money.

New iMac andHP’s Envy printermake dream team

Sweet success: business isbrisk for baking products

Apple iMac★★★★☆

There are three classics on offer for the holidays thisweek as Apple presents an improved version of its all­in­one PC style leader, the iMac, and Hewlett­Packardintroduces an all­in­one printer that matches Apple’sproducts for cool design. For classical music loverswith iPads, The Orchestra app makes an excellent gift.

HP Envy 120e★★★★☆Apple no longer makesprinters, but if it did theymight look something likeHewlett­Packard’s $250(£212) Envy 120e all­in­oneink­jet.

This smooth piano­blackbox takes away all theugliness of paper feeds andI was able to slide itunobtrusively into ourentertainment centre, as awirelessly connected centralprinting option for thefamily.

Press the On button onthe front panel and theprinter unfolds before youreyes, with the panel liftingoutward and up to ahorizontal position, a 4.3incolour touchscreen comingto life and paper supportsemerging from the interior.

For scanning and copying,there is a see­through panel

display, featuring a short, light-hearted, movie of Minnie Mouseencountering cartoon versions of fash-ion’s best-known faces.

“The windows are our mostinvolved project of the season. Conse-quently, they receive proportionallythe largest budget,” Mr Lee says.

Retailers remain tight-lipped oncosts, but analysts estimate that adepartment store such as Barneysmakes about 72 window changes peryear, with a spend of between $20,000and $100,000 per display.

“Holiday budgets for the world’s topdepartment stores will run into thehundreds of thousands, even millionsof dollars – many spend more on thatone, six-week period than they will forsix or seven months of the entireyear,” says Mr Burke.

In London, Harrods also workedwith Disney to create “Once upon aDream”, a 10-piece collection ofdresses inspired by Disney princessescreated by designers such as Versace,Valentino and Oscar de la Renta.

“Windows are a true reflection ofyour brand and the very best productyou have to offer,” says Mark Briggs,Harrods store image director. “Weloved the ideas of combining luxuryand fashion with fantasy and nostal-gia, so carried the Disney theme intoand throughout the store to maximisecommercial opportunity, with a Dis-ney café and 7,000 square foot Disneyboutique.”

Others favour a more timelessappeal. Bergdorf Goodman charted

Shops wage winter window warcomponent, increasing a brand’sonline profile and exposure.

Both Selfridges and Bergdorf Good-man have deployed multi-platformsocial media campaigns this year withbehind-the-scenes footage, audio toursand competitions on the Instagramphoto sharing site, while some of thedisplays are accessible online.

“While the video for our campaignthis year was conceived as the anchorfor the window display, the intentionwas also to reach millions of consum-ers via the web, not just those onMadison Avenue,” says Mr Lee.

With online shopping accountingfor about 10 per cent of annual holi-day sales, according to ShopperTrak,stores need to defend market shareboth off and online from “new guard”internet rivals such as FarFetch andNet-a-Porter.

Mediator Imagine Fashion,launched in early 2011, isa website designed tobridge the gap between

retail and etail by allowing users toexplore the fashion industry’s mostexquisite window displays beforeclicking through to buy the productsonline. The website takes a cut of anysales made.

“A single location will only evergenerate a capped amount of localisedtraffic – but online the potentialis limitless,” says founder Amber Gor-don.

Others in the industry remain moretraditional in approach. Tiffany & Cofocused its 260-store global campaign– “Home for the Holidays” – on hand-made miniature recreations of richlydecorated apartments on New York’sUpper East Side. These windows arenot connected to any online shopping,they are simply meant to amuse, saysRichard Moore, vice-president of vis-ual merchandising.

“ ’Tis the season to give and bemerry, after all, so ultimately we seethe displays as our way of giving cus-tomers and passers-by somethingback in return,” he says.

For December shoppers, aglimpse of the window dis-plays put on by the world’smost famous department

stores is as much a part of the festiveexperience as hanging decorations onthe tree. For retailers, this long-cher-ished tradition is also significant –although for different reasons.

“Competition between departmentstores and prestige brands becomesabsolutely cut-throat at this time ofyear,” says Robert Burke, a leadingluxury retail consultant and formersenior vice-president of fashion andpublic relations for Bergdorf Good-man, the US luxury department store.

“While Christmas windows are thepinnacle of self-expressive and crea-tive display for stores, crucially theyalso drive foot traffic – and trafficdrives sales. They may look frivolous,but windows are tactics deployed in aserious turf war between rivals chas-ing patrons and profits – they are abig business.”

As consumer spending has slowed,many luxury brands and shops haveinvested heavily in glossy visual andfloor campaigns to retain the customof an increasingly tough crowd.

According to ShopperTrak, a lead-ing provider of footfall monitoringtechnology, US consumers were lessactive this December than last year,with foot traffic down 0.7 per cent andsales down 1.5 per cent on 2011.

Nevertheless, the stakes are stillhigh, with the week of December 16expected to have been the biggest ret-ail sales week of the year, when mil-lions of shoppers take to the streets.

“The fourth quarter represents themost significant portion of sales forthe year, so a strong holiday cam-paign can help ensure you end on apositive note,” explains Mark Lee,chief executive of Barneys New York,the high-end department store.

This year, Barneys collaboratedwith Disney on an “Electric Holiday”

A stunning display iscrucial in the holidayseason and many storesare now making thesedigital and interactive,writes Elizabeth Paton

‘Budgetsfor topdepartmentstores willrun intomillions ofdollars’

Deck the halls:Selfridges (above)has a social mediacampaign aroundits windowdisplays this year;Harrods (belowright) worked withDisney; theBergdorfGoodman display(below left) washand crafted

Andrew Meredith

the glamorous brilliance of the Holly-wood Jazz Age this year by packingits Fifth Avenue windows with show-girls, performing poodles and all-girlorchestras dressed in beautiful con-temporary designs.

“At their best, windows should tran-scend their commercial purpose andbecome dream machines, fashion the-atre, entertainment and year-end festi-vals,” says Linda Fargo, the store’ssenior vice-president. “What we inten-tionally steer clear of are themes thatare futuristic, ironic, too highbrow ortoo cool. We think of Bergdorfs as a‘warm’ store, and prefer to keep thetone inviting and exceptional.”

Every element of the Bergdorf setdesign is handcrafted by local artists –a time-intensive process that oftentakes about nine months.

At Selfridges, the British depart-ment store, preproduction takes ayear from idea to installation, witha team that swells from nine to 100in the run-up to the windows’ unveil-ing in November. The costs are vast,yet store director Alannah Westonsays holiday windows are themost important advertising outlet forher brand.

“Our windows attract an influx ofboth British and international shop-pers who descend on stores quite liter-ally just for Christmas shopping. Andwe always find that products dis-played in the windows at Christmasdo very well.”

Some holiday windows are startingto include a strong digital marketing

USB sticks or download ourmedia over the internet, butthe move could be too soonfor some users. Appleprovided me with a $79Superdrive external DVDdrive, however, which didnot detract from theminimalist aesthetics of theiMac, although it lacksBlu­ray compatibility.

The display module hasbeen fused with its glassscreen in the new model.Eliminating the gap andusing a new coating meansa 75 per cent reduction inreflection and an impressionthat the vibrant Full HDimages are almost paintedon top of the screen.

Other features include a720p HD webcam, dualmicrophones, four USB 3.0ports and an SD memorycard slot. Stereo sound hasbeen improved with morespace inside for thespeakers.

The iMac starts with agenerous 8Gb of memory;but if you want more youwill have to take the smaller21.5in model back to thestore – DIY upgrades areout because of the tightlypacked components within.

There is also an optionfor a Fusion Drive, a newconcept from Apple thatprioritises your most­useddata and programs on alightning­fast 128Gb solid­state drive, with a regularhard drive providing thebulk of storage. It made mymachine feel veryresponsive.

These innovations and thebeautiful design mean theiMac maintains a distinctiveappeal despite rivals goingall­in on all­in­ones.

MORE ON FT.COMTo see a slideshow of this season’sinnovative windows at luxury departmentstores in London and New York, go towww.ft.com/windows

MORE ON FT.COMFor more news and reviewsof all­in­one PCs, visitwww.ft.com/personaltech

on top. I placed documentsor photos face up and wasable to watch them beingscanned with technologythat does not blind you withthe usual light beams.

Other features include afront USB port for charginga smartphone, a memorycard slot and software andapps that allow you to printfrom a smartphone ortablet.

The trade­offs for thesleek design are an internalpaper tray that holds only80 sheets and the absenceof a document feeder forscanning. But the 120e willprint on both sides of thepaper and is the quietestmodel made by HP.

BUSINESS LIFE

DECEMBER 21 2012 Section:Features Time: 20/12/2012 - 17:53 User: paleita Page Name: BizLife, Part,Page,Edition: EUR, 10, 1

FINANCIAL TIMES FRIDAY DECEMBER 21 2012 ★ 11

ARTS

scatterbrained event commentatorfrom Best In Show, the whole moviegoes at a gallop. If it had opened twoweeks hence we would be calling itthe comedy pace-setter for 2013.

British film-maker Bernard Rosecannot stop adapting Tolstoy. AnnaKarenina; The Kreutzer Sonata; bestso far, ivans xtc, his Hollywoodmodernisation of The Death of IvanIlyich. Boxing Day turns the shortstory Master and Man into a spry ifimprobable Colorado two-hander.During a long day’s journeying, theright hand (Danny Huston as a WestCoast property dilettante visiting theRockies) keeps being discombobulatedby the left. That’s Matthew Jacobs ashis English-born driver-for-the-day.The latter shoulders a class chip ortwo along with the heavy house-touring duties, as master and man godeeper, ever deeper into the snowsand unknowns from which they maynot return.

Some critics have moaned aboutportentousness. (All that Goreckimusic.) But there’s a rueful wit inthis character mismatch whichbecomes a sort of love match. ZenBuddyism. “Do you want me to callyou ‘sir’?” asks Jacobs at one point,as if the whole matter of class andsocial difference is a consensusmasquerade, a giant game of “let’spretend” in which the world, byamicable conspiracy, has agreed to bethe players.

You risk death by a surfeit ofmagic realism while watchingMidnight’s Children (opening in theUK on Wednesday). Of the half dozenways Salman Rushdie’s Booker Prize-winning social-historical-fantasticalnovel could have been brought to thescreen, director Deepa Mehta andRushdie himself, screenwriting, pickprobably the worst.

Contemporary Indian history,enriched with fable and allegory,can be packed into a novel, albeit amega-novel, if the author/narrator’spersonality is there (it was) to styleor singularise the plenitude. Butcinema is insistently real unlesscounteracted by the insistently,hyper-really imaginative. A film thatneeded a Fellini, or Life of Pi’s AngLee, instead whirls pedestrianly,literalistically, through birth, sex,Indian independence, swapped babies,sorcerer’s abductions, Mrs Gandhi’semergency, until we want to say “Stopthe whirl, I want to get off.” Rushdie’s

own voice, deliveringgobbets of the novel,

proves another bad choice.It’s too wry, professorial,

media-familiar: all we see isthe hero of a hundred chat showswith his beady charm. Everythinghere needed enriching, amping up,amplifying out. Less isn’t alwaysmore; sometimes more is more.

Ang Lee’s Life of Pi is an eye-boggling demonstration of thevirtuosities available to the poeticallyinventive film-maker in 2012 AD(Anno Digitale). I kept thinking ofthe TV Superman series and itsfamous old voice intro. Is Lee’s film afable? Is it an adventure? No, it’s asuper-movie. Faster than a speedingballet, leaping tall decades at a singlebound, this action fantasy from YannMartel’s 2001 Booker Prize-winningnovel says a final goodbye to pre-digital, pre-diluvian 3D.

Every filmgoer will re-become achild as he/she watches theshipwrecked Indian boy (played byvivid newcomer Suraj Sharma)grapple with adversity – storms,sharks, a fusillade of flying fish – ashe is cast away at sea accompaniedby a tiger from his dad’s zoo-in-transit. The other human characters,including a blink-and-you-miss-himGérard Depardieu as the ship’s cook,are swiftly dispatched to DavyJones’s locker; we don’t need them.

Though the worst of Martel’s booksurvives along with the best – thearguments for God’s existence whichbookend the screenplay would barelystand up in a kindergarten – the bestoccupies most of the screen time. Thelifeboat’s initial bestiary includes azebra, orang-utan and hyena(terrifying), all digitised in part orwhole, all in our faces or at ourthroats whenever Lee commands andthe 3D specs obey.

The digi-tiger is a dazzler, expert,seamless, all-expressive: a screen tourde force as captivating in itsvirtuosity as the puppeteered stageequine in War Horse. Lee and histeam also conjure high seas and

Af loat onan ocean ofpossibilities

Captivating:‘Life of Pi’; below,Anna Kendrick in‘Pitch Perfect’

mighty squalls and, for contrast, anight of phosphorescent jellyfishglowing back at the moon and asunrise seascape golden, mirror-placid, horizonless. Sometimes boatand boy seem suspended in avacancy between transparentinfinities. This is picture-book picture-making as ensorcelling as any wehave seen since Powell’s The Thief ofBaghdad, another tale of an Indianboy, a world of magic, andshowdowns with the elemental.

West Memphis, a documentaryabout an unresolved murder case,was press-shown on the morning ofthe day news broke of theConnecticut school killings.Coincidence? Or spooky cinematickarma? The case’s three boy victims,also primary school age, were alsobrutally and unfathomably murdered.America’s violent underside – MrHyde to the Dr Jekyll of itsdemocratic freedom – never changes.The killings took place in 1994Arkansas and delivered three teenagesuspects to Death Row, convicted ofSatanic homicides. Thatinterpretation was based on thesexual mutilation of the bodies. Thetrio of defendants were convicted onslim evidence but with theconfession, coaxed by police, of themost mentally challenged.

Amy Berg’s enthralling film, co-financed and initiated by no less thanPeter Hobbit Jackson, arrives 18 yearsand three documentaries later. TheParadise Lost triptych, made between1996 and 2011 by two directors ofwhom one, Joe Berlinger, went on toBook of Shadows: Blair Witch 2, wasfull of florid speculation reinforcingnotions of a cultist killing. Paradise

Lost 3: Purgatory, though, began theclimbdown into fact and followedseveral routes taken also by Berg andJackson. With painstaking detectivework and deep-pocket recruitment ofwitnesses (top forensic experts, topattorneys), enough evidence wasculled to help free the accused –though not without some late-hourplea-bargaining stipulated by theArkansas courts.

Astonishingly the film-makers alsoshine a Klieg light on the likelymurderer, still free and likely toremain so, despite damning DNAevidence. Incredulously we watchcourtroom footage of this man

resisting grillings which wouldbarbecue a lesser liar. The movie’sconclusion? In America death ischeap and justice expensive. Only thebrave or quixotic spend their livestrying to bring the two things closertogether.

In a poll on the hundred things weleast need from Hollywood a comedyabout an all-female a cappella groupmight come first. Pitch Perfect,though, is very funny: the Spinal Tapof unaccompanied singing. Two teamsfrom the same fictive university goall the way to Lincoln Center’snational contest final. It’s the girlswho take centre screen, desperate torestore their primacy after a victory-robbing mishap – cue flashback – theyear before. (You have heard ofprojectile vomiting; this is the Polarisversion.) The boys’ team doeseverything borderline-legal tooutsmart them.

Both teams are led at the finish bysceptics-turned-songsters. AnnaKendrick (Up In the Air) is thegirls’ take-charge ingénue,scrapping their flightattendant costumes andKremlin parade choreography.Skylar Astin for the boys decidesa cappella doesn’t have to be the“organised nerd singing” he calledit in scene one. (But it stillessentially is: no joke otherwise.)With the incomparable John MichaelHiggins reprising his sardonic,

FILMNigel Andrews

Life of Pi ★★★★★Ang Lee

West of Memphis★★★★☆Amy Berg

Pitch Perfect★★★★☆Jason Moore

Boxing Day ★★★☆☆Bernard Rose

Midnight’s Children★★☆☆☆Deepa Mehta

WEEKEND ARTS‘This is a biennale thatcrackles with freedom,courage and imagination’:Rachel Spence reportsfrom the the Kochi­MuzirisBiennale, India’s first ever,in tomorrow’s FT Weekend

Hans Christian Andersen’s “TheLittle Match Girl” is trim andsentimental. On New Year’s Eve, apoor waif lights matches to fight thecold. With each match, shehallucinates about the joys ofChristmas. Presently, she freezes todeath and flies to heaven.

By her own estimation, MeowMeow is a “post-post-modern diva”who deals in “kamikaze cabaret”.

She is no waif. Joan of Arc is“flaming” in her head beside“naughty pyromaniac children”,“witches at the stake”, globalwarming and the Catherine wheel.Meow is fiercely undomesticated andher Little Match Girl, born inMelbourne’s Malthouse Theatre, is abold step beyond Andersen’s“agit-prop fairy tale”, as she labels it.

“We’re going to break the cycleof world hunger and child poverty,”the cabaret artist purrs. She setsabout her task with the skittishenergy of a rogue firework. Meow isnot inhibited by the naturalboundaries presented by a stage.Frequently she invades theauditorium, recruiting obedientpeople – “rub each other, rub me!” –

with frenetic zeal. Her socialmessage, condensed into theinjunction “be careful with eachother”, pops up in the course of16 numbers – Wagner, Purcell,Porter, Coward – and is garnishedwith tutus, artificial chaos and ahuge chandelier (not explained). Ifthe menu of destitution and deathlooks grisly, the presentation isvibrantly upbeat.

Meow is eccentric, self-deprecatingand marvellously unafraid to lookugly; she is imaginative and tasteful(unlike Andersen, she expungessentimentality); her voice can soundhaunting or huskily lusty. But hergreatest gift is to seem so vividlyalive. Her stage presence is anurgent fact that demands attention.Beside Meow, most performers (notleast, her supporting artist, ChrisRyan) feel airbrushed.

The main problem is one ofbalance. Meow claims that thousandsof children will sleep on Britain’sstreets tonight. That is the meat ofher festive feast, but the trimmings –frothy cabaret japes – upstage it.The pill is sweetened. If it were toobitter – too serious – audiencesused to vapid winter diets ofpantomimes and West End musicalsmight just gag.

Other problems are technical.Cabaret feeds on fumes and sweatand Queen Elizabeth Hall isrelentlessly airy. The set isirrelevant, the plot is missing andbits of the script drag. In suchconditions, Meow can sputter, fizzand flare, but not combust. It is agood show, but a better one lurksbehind it.

www.southbankcentre.co.uk

Post­post­moderndiva:MeowMeow

Jeff Busby

A better world through cabaretTHEATREMeow Meow’sLittle Match GirlQueen Elizabeth Hall, London★★★☆☆

Alexander Gilmour

Konk Pack are a rip-roaring trio offree improvisers whose in-the-moment collisions deliver the thrustof electronics with the confidence ofa long-term relationship – theyplayed their first gig in 1997 andhave been touring ever since. Theelectronica is more gadgets andbuttons than laptop and mouse, andits industrial soundscapes have asurprisingly warm-hearted core.

A seated Tim Hodgkinson conjuresdissonance from a wired-up lapsteel guitar and Thomas Lehndispatches fusillades of beeps fromanalogue synth – he’s a physicalplayer who rolls and sways withthe mood. And for contrast andbalance, Roger Turner plays drums

with a strong, though somewhatfractured, sense of time.

The methods and pulse are thoseof free jazz, but here the ebb-and-flow dynamics are magnified toextremes. Both through-improvisedsets had quiet beginnings, roaringclimaxes and a pin-drop finish. Andboth garnished instrumentalorthodoxy with scrapes, scratchesand clatters. Turner used four-sticktechnique to produce a scamperingrattle and bowed a chunk of metalfor a finger-scraping screech.Hodgkinson assaulted his lap steelguitar with bottleneck, violin bowand plastic comb – the sounds wereraw, harsh and percussive, oftentweaked or distorted into anamplified howl.

The first set opened with asynthesised drone and the ponderousthrob of a church organ pedal. Therewere fragments of drums and thesporadic click of a heftily pluckedlap steel guitar. Tension grew,with short press rolls and mighty

thumps, lightning-fast scampers andpings bouncing across the stageagainst a howl of white noise andthrashing drums.

There were intense duets withthird party support, high-pointextremes, when all spoke as one,and times when each musicianseemed out on a limb. And forevery furore there was a patch ofuneasy calm. The range wasextraordinary and, over two sets,their internal coherence, thoughabstract, effervesced withintelligence.

The first set ended with a cymbalhissing gradually into silence; theearthier second set faded with aspacious, barely perceptible pulse.It gained accompaniment from aclink of bottles from the bar at theback. “I think they’re moving thebar,” quipped Turner. “Move it overhere,” suggested Hodgkinson. Andthat was that.

www.cafeoto.co.uk

JAZZKonk PackCafé Oto, London★★★★☆

Mike Hobart

DECEMBER 21 2012 Section:Features Time: 20/12/2012 - 17:10 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. 14,193 Set by SLEUTH

JOTTER PAD

ACROSS 9 Sponge namely right beside couch

left out (9)10 Before dark with third and fifth

characters changing places (5)11 Friendly Welsh politician recalled two

islands (7)12 Fool, perhaps, putting hand by

tailless dog (7)13 Pill’s cost in the US (3)14 Conductor from capital getting it in

the neck? (7,4)17 Jolly Derbyshire town (not half)

attracting honour (5)18 One celebrated in toast before a

period (3)19 Roughage about to follow pork pie (5)21 Partner outside is virtually accessible

in small dwelling (11)23 Polish precious stone endlessly (3)25 Sports body tucking into light snack,

a dessert (7)27 Approximate area around front of this

building (7)28 Record in unbroken role-play (5)29 Spooky activity? (9)DOWN 1 A strip of wood covering back of

cabin in oblique fashion (6) 2 Very clever figure attending theatre

after getting two cups? (8) 3 Silent old boy upset with colossal

gobbledegook (5-5) 4 Piece in blog repelling bad-tempered

person (4) 5 Support everybody getting lift in

part of hospital – it’s necessary for launch? (10)

6 Bit of greens, something to chew on? (4)

7 Conflict in colourful band with fellow standing for power (6)

8 Part of garment in medium time son took off showing refinement (8)

15 Inexperienced person without means ignoring refined basis for discussion? (5,5)

16 Thought beginning to rouse fighter in political contest (10)

17 Mess largely brute contrived giving misleading information? (3,5)

20 It might describe lair a nob planned? (8)

22 Drift shown by young offender, type losing head (6)

24 Bachelor with mention of light jacket (6)

26 Old rally regularly seen in airport (4)27 Mature beef with bit of gristle

removed (4)

SOLUTION 14,192

Still fightingBlog: Isabel Gorst on anearlier release date forMikhail Khodorkovskyand why Russia’s mostfamous prisoner won’tkowtow to the Kremlin

www.ft.com/bb

ResourcenationalismVideo: James Smitherof Maplecroft explains tothe FT’s Rob Minto howshifts in commodityprices affect a country’sresource leverage

www.ft.com/authersnote

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2

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Google sells Motorola set­topbusiness

UBS pays price for ‘epic’ Liborscandal

Greece faces ‘make or break’ year

TODAY ON FT.COM

THE LEX COLUMNFriday December 21 2012

Trading places

Source: Berenberg Bank

0

10

20

30

40

70

60

50

Stock exchange merger cost synergies*(%)

ASX &SFE

TSX &Montrealstock ex

NYSE &Amex

stock exDomestic mergers Cross border mergers

CME &CBOT

CME &Nymex

DB &ISE

NYSE &Euronext

LSE &Borsa

Italiana

Nasdaq &OMX

* Cost savings as a percentage of cost base of acquired exchange

Domesticmerger

average of44%

Internationalmerger

average of26%

NYSE ICE babyWhat is Jeff Sprecher to do with theNew York Stock Exchange? The bossof IntercontinentalExchange has justagreed to buy that venerableinstitution’s parent, NYSE Euronext,for $8.2bn. But cash equity tradingis low margin, even if the NYSEbrand makes a profitable listingsbusiness possible. The real attractionis NYSE’s Liffe European derivativesexchange. So ICE aims to spin offthe Euronext equity exchange. MrSprecher might like to spin off theNYSE, too, but its status as asymbol of American capitalism willprevent him. So he is stuck with abusiness that, in six years, has gonefrom a near-monopoly in trading ofNYSE-listed stocks to a 25 per centshare. Well, if floor trading shoulddie out, Mr Sprecher can always sellthe financial news channels footageof men in blue coats yelling andthrowing paper.

This is a small complication. Butit is emblematic of the deal’scomplexities. If the tie-up works asadvertised, both sides will be happy.ICE has paid NYSE Euronextshareholders a 38 per cent premium– a total of $2.2bn – for a stock thathas gone nowhere for four years.For ICE the $450m in annualsynergies it expects, if realised,

are easily worth $3bn or more.But if there is sufficiently small

overlap between the businesses forantitrust regulators to allow it,where will the savings come from?ICE thinks NYSE Euronext could berun more tightly. There is someoverlap: both companies haveclearing businesses, which arecostly to run. Mr Sprecher is bettingthat, because the two clearing unitsmostly clear different things(energy, commodities and emissions

at ICE; interest rates and fixedincome at NYSE), regulators will besanguine. He may be right. AndICE has a strong record of cost-cutting. But it is buying a dreadfulchimera of a company, built out ofat least five previously distinctparts.

There is a long list of big cross-border stock exchange deals thathave failed to create value. If MrSprecher keeps NYSE-ICE off thatlist, it will be a major achievement.

China propertyNaysayers on China wantedeverybody to believe that itsproperty market would have gonepop by now. Investors who ignoredthem will be glad they did. Shares inChinese property developers havemade the biggest gains in HongKong this year, returning as muchas 80 per cent against 25 per cent forthe benchmark Hang Seng index.

Those returns are impressiveconsidering that Beijing has notbudged from its pledge to curbproperty prices. But then the valueof house sales has still grown 10 percent this year. It is only recentlythat unit prices have started to fall –now down a tenth from an Augustpeak. Even so, those price falls andlower interest rates helped the salesvolume to jump 30 per cent inNovember from last year.

This sales growth has helpeddevelopers to reduce stock, but it isthe lack of price appreciation that issqueezing all but the strongest. Asthe price boom comes to an end,falling margins and high leveragehave left developers facing returnsbelow the cost of capital. Debt-to-equity ratios are more than 70 percent and short-term liabilities are upsixfold since 2006, according toBarclays. Little wonder thatGreentown, a developer, was forcedto raise HK$5bn from its shareholderWharf this year.

Such low cyclical returns and highleverage mean valuations arestarting to look rich. Developerssuch as China Overseas Land andInvestment – the biggest by marketcapitalisation – trade on 12 timesforward earnings, close to their long-term average of 14 times. Yet thesector’s average discount to net assetvalues has shrunk to 35 per centfrom the historical average of 48 percent, notes Jefferies. With Beijing seton tackling income equality andsupporting sustainable growth, priceappreciation is unlikely to returnany time soon. China’s developersmust adjust to that.

Italy derivatives rulingIs there no end to it? As regulatorsaround the world probe manipulationof the interbank lending market,prosecutors in Italy have zeroed inon something a bit less esoteric butno less troubling – the mis-selling ofderivatives contracts. Deutsche Bank,UBS, JPMorgan and Depfa Bankhave been convicted and fined €1meach for aggravated fraud involving

the sale of a €1.8bn bond to the cityof Milan. The verdict could start acascade of similar cases, becauseItaly’s local authorities went on astructured finance binge in the pastdecade. Moreover, it suggests thatbanks are not entitled to make aprofit on those deals.

Milan’s case against the banks wasthat they were not transparent intheir dealings with the city, and thatthe complexity of the instrument inquestion – an interest rate swapstransaction – was not apparent. Atthe time, local authorities wereseeking to refinance using interestrate swaps as a means of increasingcurrent revenue while postponingcosts. According to the Bank of Italy,some €35bn of local authorityborrowing may involve interest rateswaps. The fact that the borrowersunderestimated what the costs wouldbe is coming back to punish them.

The court upheld Milan’scomplaint and ordered the banks tosurrender assets to the value ofnearly €100m – roughly the profitthey are said to have made on thetransaction. The banks are to appeal.A written ruling that should set outthe judge’s arguments in detail is

due within 90 days. So it would bepremature to leap to conclusions.But local authorities, in Italy orelsewhere, are hardly bastions offinancial expertise. Their borrowingsought to be supervised by financeministries. Italian local authoritiescan no longer engage in the type oftransaction at the heart of the Milancase. If there is any lesson, it is thatit is time for clearer rules for suchbespoke transactions.

ArevaAs profit warnings go, the one fromFrench nuclear power group Arevayesterday was hardly of themegawatt variety. Certainly, it was afar cry from the whopping €2.4bn ofwritedowns the Paris-based groupannounced a year ago. This timeAreva is cautioning that earningscould be a little light in 2013 – morethan €1.1bn rather than thepreviously anticipated €1.25bn floor,at the pre-interest, tax, depreciationand amortisation level. It is,however, reconfirming guidance for2012 and still expects break-even freeoperating cash flow next year. Evenso, Areva’s shares, which had been

edging up from 10-year lows, fellabout 4 per cent.

One worry may be that theproblems seem to stem from thecompany’s renewables business. Thisis a small unit in the context of thegroup overall: its €300m salesaccounted for just 3 per cent of thegroup total in 2011. But Areva chiefexecutive Luc Oursel had beenprojecting rapid growth for thisdivision, with annual sales to top€750m by 2013 and more than€1.25bn by 2014-16. Now Areva saysrevenues from renewables willprobably be flat next year, in linewith the €600m expected for 2012.Blame is placed on financing delaysat some projects. Investors, familiarwith the fickle nature of renewablesearnings flow at other Europeancompanies, including Siemens, maybe nervous.

By contrast, Areva’s core nuclearbusiness appears to be on track, withtarget revenue growth of 3-6 per centconfirmed for 2013. But the challengehere was always going to come post-2014, when Areva is projecting apick-up in sales growth to 5-8 percent a year. There have been somepositive developments following the

CarnivalIt is almost a year since the cruiseliner Costa Concordia capsized offItaly. Carnival, its owner, is stillfeeling the consequences of thattragedy and a fire on another Costaship shortly afterwards. Thecompany – which controls half of theglobal cruise market – was able tolimit the fall in revenue to 3 per centover the year, but operating profitswere 27 per cent down as marginscollapsed.

Nevertheless, Carnival’s shares areup 15 per cent since the start ofJanuary, and trade on 16 timesforecast earnings for 2013. Theinvestment case assumes that it canpull off a dual recovery: in the shortterm from the Concordia disaster,and in the medium term from ageneral malaise.

Even before this year, Carnivalhad been going in the wrongdirection for a while. Operatingprofits in 2011 were more than a 10thlower than they had been five yearsearlier, despite a big jump inrevenues during the period. Theglobal financial crisis did not help,nor did the industry’s enthusiasm fornew ships. Capacity rose 7 per centannually between 2000 and 2010.Deutsche Bank expects that rate tohalve between now and 2016,allowing the likes of Carnival toimprove pricing and margins.

But the company also has to battlegrim economic conditions, and itscautious tone about 2013 knocked6 per cent off the shares yesterday.Earnings for the year could be 7 percent below previous expectations,with the company pointing the fingerat lower pricing. Margins willimprove in 2013, but perhaps not asmuch as the optimists hope.

Some investors will like Carnival’spromise to return its $1.3bn ofexpected 2013 free cash flow toshareholders, after dividends of asimilar amount in 2012. But itsprofile – a faltering recovery andhefty cash returns – suggests that16 times earnings is generous.

post-Fukushima hiatus, but nuclear’sprospects are far from rehabilitated.Areva shares, on 14 times consensus2013 earnings, may be in for a slowcrawl for a while yet.

DECEMBER 21 2012 Section:FrontBack Time: 20/12/2012 - 19:31 User: swordsd Page Name: 1BACK USA, Part,Page,Edition: EUR, 12, 1

★ 13

Companies and sectors in this issue

CompaniesAdidas..........................................14

Air China......................................17

Alent............................................26

Amazon...............................6,14,17

Antofagasta................................26

Apple..............................6,17,25,26

Areva............................................12

Asiacell........................................24

Bank of America.......................26

Barclays.......................................16

Bed Bath & Beyond.................26

CBOE Holdings..........................26

CME Group............................17,26

CarMax........................................26

Cargill ..........................................24

Carnival.......................................26

Centamin....................................26

Chicago Board of Trade..........17

China Overseas Land...............12

China Three Gorges.................26

Cisco..............................................6

Citic Securities...........................17

Citigroup......................................16

ConAgra......................................26

Credit Suisse..............................16

D.E. Master Blenders...............26

Danske Bank..............................14

Depfa Bank.................................12

Deutsche Bahn.....................14,26

Deutsche Bank......................12,16

Deutsche Telekom....................14

Disney..........................................10

Emirates NBD............................14

Ericsson.......................................14

Facebook.....................................13

Fannie Mae.................................16

Freddie Mac................................16

Freedom Group...........................3

Freeport-McMoRan ................... 15

GKN.............................................26

General Electric...........................6

Generali ....................................... 14

Getco...........................................25

Glencore...................................... 13

Google.................................6,14,25

Gree Electric...............................17

Greentown...................................12

Herbalife ..................................... 26

Hewlett-Packard........................25

Huawei...........................................2

ICAP............................................. 16

ITV................................................26

Intel.........................................15,25

Intercontinental Hotels............26

IntercontinentalExchange.12,17,26

JPMorgan ............................. 12,16

Korek Telecom..........................24

Kraft ............................................. 15

Li Ning.........................................14

Lotos............................................26

Maker Studios............................14

Microsoft.......................................6

Morgan Stanley.........................25

NYSE Euronext................12,17,26

Nasdaq OMX.............................26

Nike..............................................14

Norges Bank Investment.........14

PPR...............................................14

Polymetal International ........... 26

ProLogis ...................................... 14

Puma.......................................13,14

Qatar Telecom .......................... 24

RP Martin....................................16

Randgold Resources................26

Rosneft ........................................ 15

Royal Bank of Scotland...........16

SBM Offshore............................26

ST-Ericsson.................................14

STMicroelectronics....................14

Samsung..................................6,17

Siemens.......................................12

Smith & Wesson.........................3

SoftBank......................................15

Sprint Nextel .............................. 15

State Street ...............................25

TNK-BP........................................15

Talisman Energy.......................26

ThyssenKrupp.......................14,26

Time Warner .............................. 14

Trafigura......................................13

Tullow Oil....................................26

UBS....................................12,16,26

United Technologies.................15

Vesuvius......................................26

Vitol ..............................................13

Walmart.........................................3

Weir Group.................................26

Whitbread...................................26

Xstrata.........................................13

YouTube......................................14

Zain Iraq.....................................24

SectorsBanks............................13,14,15,16

Gen Financial....................13,15,17

Gen Industrials......................14,17

Media ........................................... 14

Mobile & Telecoms...................14

Personal Goods......................... 14

Real Estate ................................. 14

��������� ���

© THE FINANCIAL TIMES LIMITED 2012 Week 51

News Briefing

Yen

Source: Thomson Reuters Datastream

Against the dollar (¥ per $)

Oct 1 201278.06

Dec 20 201284.26

75

80

85

Yen gains after BoJ expandsbond-buying scheme, Page 26

Obermann to departAfter seven years in job,D Telekom chief says hewill step down. Page 14

China trails CEO rankingOnly three from mainlandmake it into top 100.Page 17

Maker Studios fundingTime Warner backs videonetwork aiming to linkYouTube and TV. Page 14

Spain banking bailoutBrussels signs off on planto inject €1.87bn of freshcapital into lenders. Page 15

Deutsche Bahn suesCompensation soughtfrom ThyssenKrupp overprice fixing. Page 14

Danske Bank says sorryChief Eivind Kolding issuesgeneral apology for pre-crisis behaviour. Page 14

Carnival strugglesCosta Concordia operatorsays cheaper 2013bookings down on previousyears. www.ft.com/leisure

BNP exits Egypt bankFrench lender sellsoperation to EmiratesNBD for $500m.www.ft.com/banks

Inside BusinessAdidas soaks up thepunches to deliversporting success. Page 14

Bulls of Wall StreetEquity resilience no longerunderestimated. Page 25

CLO issuance boomsPrivate equity fuelsdemand as hunt for yieldheightens allure. Page 24

M Stanley moves on ErisBank plans ‘strategic’investment in futuresexchange. Page 25

Trading PostShort copper, go long onBunds and use the Mexicanpeso as a proxy for USoutperformance. Page 25

Markets & Investing

Companies

Friday December 21 2012

Libor failure Five internal audits at UBS did not spot rate-fixing Page 16

There is little peace and evenless goodwill to all men inWashington this Christmas ascongressional Republicans andthe White House argue overhow to avoid the spending cutsand tax rises due in January.

Next week’s build-up to thefiscal cliff would be badenough for investors, even if itwas not combined withholidays. In the week betweenChristmas and New Year juniorstaff will be running manybank trading desks and hedgefunds, while plenty of otherinvestors have already squaredtheir positions, ready to returnin the new year. The marketwill be much less liquid thanusual, with little trading, andthe trading there is having abigger impact on price.

Drop tense politicalnegotiations into this marketand the volatility could spoilmany a break.

Yet history suggestsChristmas has typically beenkind to investors. In spite ofthe lack of trading, equitieshave been less volatile in thefinal week of the year than isusual and have produced betterreturns. It is true there havebeen no monster returns; thebest gain on US shares in thelast 84 Christmas weeks was5.3 per cent, a rise beaten onaverage at least one week eachyear. But the median weeklyreturn was triple the norm,and there has been littledownside to staying in themarket.

Investors who can tearthemselves away from fiscalcliffery next week should thinkabout taking profits on riskyassets after a good year andbuying what underperformed.Topping up bond holdingsseems unappealing with yieldsbelow inflation; but disciplinedrebalancing reduces risk andboosts returns.

Only in a market with amultiyear trend – the dotcomor credit bubbles, for example –does rebalancing harm returns.Since 1980 a 60/40 US equity/bond portfolio turned $100 into$2,566 if left. Rebalanced once ayear back to 60/40, it would beworth $2,784, and would havebeen less volatile, too.Short View returns in January

www.ft.com/shortview

US banksface steeprise in badloans cover

By Tracy Alloway in New Yorkand Adam Jones in London

The US accounting standardssetter has unveiled tough newrules that will increase theamount of money banks have toset aside to cover soured loansand bonds.

The proposed rules from theUS Financial Accounting Stand-ards Board are likely to provecontroversial among banks, aswell as the FASB’s counterpartsat the International AccountingStandards Board.

The FASB has yet to under-take an official study estimatingthe impact of the proposedrules, but its chairman, LeslieSeidman, said yesterday thatfeedback from financial institu-tions indicated banks mighthave to increase their loan lossreserves by 50 per cent. Theboard will examine the impactof the rules as it collects indus-try reaction, which is expectedto continue into next year.

“We do expect some increasein the reserves for financialinstitutions, but that’s some-thing we’ll be learning moreabout during the commentperiod,” Ms Seidman said.

Under current US accountingrules, banks are required to setaside money for bad loanslargely using a so-called“incurred loss” model, meaningthey do not have to “reserve”for soured loans until losses areconsidered probable or havealready been incurred. Thatmethodology has led to violentswings in the amounts of moneybanks put aside in loan loss pro-visions in recent years.

The FASB’s proposal wouldshift banks to an “expected

loss” model in hopes of avoidingthe shocks experienced in thefinancial crisis. Under thismodel, banks would have imme-diately to estimate the amountof potential losses they mightincur on loans, or bonds, and setaside money to cover them.

The FASB and IASB havebeen pushing jointly to move toan “expected loss” model, butsignificant cracks have emergedin their attempt. Ms Seidmansaid IASB plans to limit lossestimates for performing loansto 12 months. The FASB will notlimit those estimates.

Hans Hoogervorst, IASB’s

chairman, has criticised themore conservative US account-ing approach, claiming it woulddeter banks from lending.

“We think there will be plentyof pushback from the industry,as the new guidance wouldrequire higher initial recogni-tion of credit losses as new loansare originated, leading to ‘dayone losses’,” said Glenn Schorr,banking analyst at Nomura. “Sowe get the argument that this ispotentially another disincentivefor banks to lend.”

The American Bankers Asso-ciation said it welcomed FASB’sattempt to simplify the account-ing method, but that the board’sunlimited timeframe for esti-mating loan losses could be apotential issue for the banks.

“The proposal appears torequire banks to extend someestimates of losses so far intothe future that reliability willlikely be called into question,”said ABA’s Bob Davis.

A year in M&A, 2012Annual % change, or comparison to 2011

Sources: Mergermaket; Thomson Reuters FT Graphic

7%Down

5.2%Down 3rd

Up to

33.5%Down

4.8%Down

$2.1tnValue of

global M&A

Global investmentbanking fees

US M&A activity worth $727.6bn

Value of the largest deal between Glencore and Xstrata,however Rosneft spent morethan $59bn acquiringTNK-BP in two transactions

Percentage change in valueof cross-border deals

Change in value of global pharma deals, thoughagriculture dealsrose the most

Average global ebitda multiple, the lowest since 2003

Goldman Sachs’ global M&Aranking with deals totalling $531bn

Citigroup’s global M&A ranking,up from 7th last year

8.3%Down

$46bn

11.5x

No 1

Deal advisers heave sigh ofrelief to see grim 2012 endBy Anousha Sakoui in Londonand David Gelles in New York

Advisers will turn their backson 2012 with little regret, as theyear will rank as one of theworst for dealmaking in adecade.

Globally, fees from investmentbanking activity – includingmergers and acquisitions, equityand debt issuance – slid 7 percent on 2011, reaching $69.4bn inthe year to date. Indeed, despitea late flurry of deals in the finalquarter, 2012 ranks as the worstyear for fees since 2009. Euro-pean fees were at their lowestlevel for a decade at just over$15bn, according to data pro-vider Thomson Reuters.

While fees were boosted bycompanies taking advantage oflow interest rates to raise debtfunding, with 2012 a record yearfor junk bonds, M&A providedthe greatest share of fees.

Yet global M&A fell, with

$2,058bn worth of deals done,down 5.2 per cent on 2011,almost half that of the marketpeak in 2007. It is the worst yearfor M&A since 2009: before thatit had not been so low since2004, Mergermarket says.

European M&A fell 9.7 percent to $635.3bn, despite some ofthe world’s biggest deals beingdone in the region, as US invest-ments into the continentdropped 12.3 per cent. US M&Afell 8.3 per cent to $727.6bn.

Unpredictable markets meantfees from equity issuance hit alow not seen since 2008. Yet theUS continued to drive invest-ment banking activity, withFacebook‘s initial public offeringmaking 2012 the region’s strong-est year for listings since 2007.

Despite the gloom, large dealssuch as that between commod-ity trader Glencore and minerXstrata, as well as record-break-ing Chinese and Japanese acqui-sitions, provided some comfort.

“It shows that if there is com-pelling strategic sense you canpull these big deals off,” saidGiuseppe Monarchi, co-head ofEmea M&A at Credit Suisse.

Other bankers are more posi-tive. “We are seeing signs of agrowing equity market pipelinewhich should lead to increasedconfidence and more deal activ-ity as risk aversion abates,” saidHenrik Aslaksen, global head ofM&A at Deutsche Bank.

Dealmaking saw a late rally infinal quarter, with Rosneft’s$59.1bn acquisition of two stakesin TNK-BP boosting the value ofdeals done by 41.9 per cent.

“M&A is the wild card for2013. With organic growth notforthcoming, it is only a matterof time before boards start tolook for growth through acquisi-tions,” said Vis Raghavan, headof banking, Emea, at JPMorgan.“Deals beget deals.”

Pent-up demand, Page 15

FASB proposals likelyto prove contentious

Lenders may have tolift reserves by 50%

Banks would shift to an‘expected loss’ modelto avoid the shocksexperienced in thefinancial crisis

The Short ViewJames Mackintosh

Trafigura earns nearly $1bn ascommodities traders defy gloomBy Javier Blas in London

Trafigura, the commoditiestrader, earned about $1bn forthe second year running in 2012,indicating that the profitabilityof the world’s top houses domi-nating raw materials hasremained high in spite of slowereconomic growth in China.

The privately held company,based in Geneva and Singapore,has told its lenders and bond-holders it made profits of$991.9m in the year to Septem-ber, down 11 per cent from lastyear’s record $1.11bn.

Trafigura is the world’s sec-ond largest independent metalstrader, after Glencore, and thethird largest oil trader behindVitol and Glencore. It does not

release its accounts publicly.Trafigura has expanded

aggressively and has built a newsubsidiary of petrol stations, oilterminals and storage sites.That expansion helped lift prof-its from just $31m in 2002 to2012’s figure.

Executives have said they areaiming to establish that netincome level as Trafigura’s baselevel of profitability.

The drop from 2011 was due tohigher staff costs and expensesrelated to new investments andbusiness purchases, it said in itsannual report, seen by theFinancial Times. Gross profit, arough measure of underlyingprofitability, was up on theyear. Revenues fell 1.6 per centto $120bn.

This year, Trafigura movedthe legal headquarters of its keytrading division from Switzer-land to Singapore, highlightingthe attractions of the city-state’slow-tax regime and proximity toChina. In a further setback forSwitzerland, it is halving its Lu-cerne office, relocating staff toGeneva, Singapore and Mumbai.

The company has vowed toremain privately held, but isbringing in outside investorsthrough its subsidiary PumaEnergy, which focuses on petrolstations. Last year, it sold a 20per cent stake to the Angolanstate oil company and has indi-cated that it could float thatbusiness in 2014 at the earliest.

Additional reporting by JackFarchy

14 ★ FINANCIAL TIMES FRIDAY DECEMBER 21 2012

COMPANIES

By Daniel Thomasin London

René Obermann will standdown as chief executive ofDeutsche Telekom at theend of next year after 16years with the former state-owned German telecomsoperator.

Mr Obermann, whorequested that the boardterminate his employmentcontract, is well regardedin both financial and politi-cal circles in Germany,although his last significantact will be remembered asthe failed attempt to mergeits US business with AT&Tlast year.

Even so, he is seen byinvestors to have had agood seven years as chiefexecutive during a difficultperiod for traditional tele-coms groups in Europe,including more successfulmergers of non-core opera-tions in the UK as well as arecent deal to merge withMetroPCS in the US.

Ulrich Lehner, chairmanof the board, said that he“deeply” regretted Mr Ober-mann’s decision.

Mr Obermann, 49, saidthat he wanted to move“closer to operational activ-ities” to take a more entre-preneurial role than waspossible for the head ofan international corporategroup, although he did not

say where that would be.One analyst said a move ofthis kind was in keepingwith a reputation for beingcustomer-focused and withan eye on innovation, butadded that Mr Obermannwas also known to have atendency to “glaze over”when asked about more cor-porate activities such ascost cutting and workingwith the unions on labourpolicy.

Mr Obermann said: “Iwant to go back to havingmore time for customers,for product developmentand for technology.”

Deutsche Telekom lastmonth unveiled a three-year business plan to buildnext-generation fibre broad-band and 4G mobile serv-ices in Germany and the USat a cost of almost €30bn.As part of the plan, it saidit would reduce its dividendfor the next two years.

Timotheus Höttges,finance director, will suc-ceed Mr Obermann as chiefexecutive. Mr Höttges, whohas been with Deutsche Tel-ekom since 2000, said: “By2014, we expect to halt thedecline in revenues andstart growing again. There-fore, we will invest heavilyprimarily in our networksin Germany.”

Mr Obermann joinedDeutsche Telekom shortlyafter the former statemonopoly’s privatisation in1996, and became theyoungest chief executive ofa major German corpora-tion in 2006.

D Telekomchief tostep downnext yearMOBILE & TELECOMS

Obermann wantsnew challenge

Norway’s oil wealth fundhas accelerated its efforts toincrease its real estate allo-cation, launching a €2.4bnspending spree on ware-houses and industrial prop-erty across Europe.

Norges Bank InvestmentManagement, whose marketvalue was $650bn at the endof the third quarter, willwork with ProLogis, the USwarehouse specialist, tobuild up a portfolio thatwill see it become one ofthe largest owners of Euro-pean industrial property.

The move into industrialreal estate marks a depar-ture for the world’s largestsovereign wealth fund byassets in the way it buysproperty. Norges’ previousinvestments have tendedtowards the top end of themarket and include a 25 percent stake in London’sRegent Street and shops onthe Champs Elysées.

The fund, which will be

managed by ProLogis, willbe seeded with a portfolio of195 properties with floorspace of almost 50m sq ft,all of which are alreadyowned by the US group.The bulk of the portfoliowill then be built throughacquiring assets on theopen market.

Karsten Kallevig, chiefinvestment officer for realestate at Norges, said themove into industrial prop-erty with ProLogis markedan advancement of its strat-egy of increasing its realestate exposure.

Norges has a stated strat-egy of investing in propertythrough joint venture part-nerships. Earlier this year,it announced a tie-up withGenerali, the Italianinsurer, to buy offices andshops in central Paris. Italso bought a half stake ofMeadowhall, the £1.5bnSheffield shopping centre,in October.

Ed Hammondand Richard Milne

Norway oil fund launches€2.4bn warehouse spree

REAL ESTATE

Ericsson is to write downthe full value of its stake inthe lossmaking ST-Ericssonjoint venture and take aSKr8bn ($1.22bn) charge inthe fourth quarter as theSwedish telecoms equip-ment maker ruled outbecoming full owner of themobile phone chipmaker.

STMicroelectronics, theFranco-Italian maker ofsemiconductors, announcedearlier this month that itwanted to quit the jointventure, in which both com-panies hold 50 per cent.

Ericsson said yesterdaythat the SKr8bn non-cashcharge reflected a write-down of the fair value ofST-Ericsson as well asincluding about SKr3bn infunding needed for “theavailable strategic options”for the joint venture.

ST-Ericsson has been hitby the woes at its biggestcustomer, handset makerNokia, and the joint ven-

ture has accumulated lossesof more than $2bn since2009 after struggling tomake headway with othersmartphone manufacturers.

Ericsson has declined tocomment on its plans forST-Ericsson but yesterdayruled out taking full owner-ship of the company.

Rumours swirled allautumn that the Swedishgroup was looking into thefuture of the unit. ST-Erics-son announced plans to cuta quarter of its then 6,500jobs in April.

Ericsson has repeatedlysaid that it sees value in themodem technology that itcontributed to ST-Ericsson.

It repeated that it contin-ued to explore strategicoptions and added that itsbest estimate for these wasthat they would need aboutSKr3bn of cash from Erics-son, mostly in 2013.

Ericsson’s shares fell by2 per cent in early tradeyesterday to SKr65.

Richard Milne

Ericsson rules out fullownership of chipmaker

MOBILE & TELECOMS

Deutsche Bahn is suingThyssenKrupp and threeother companies for com-pensation over a rail price-fixing scandal that threat-ens to heap further finan-cial damage on the Germansteel and technology con-glomerate.

The claim for compensa-tion comes little more thana week after ThyssenKruppreported a full-year €5bnnet loss after booking a bigwritedown on failed steelplant investments in the USand Brazil.

ThyssenKrupp said Deut-sche Bahn had not yet spec-ified the size of its claimand the German state-owned rail operatordeclined to comment onthe size of possiblecompensation.

However, German mediareports, citing DeutscheBahn sources, estimated thesize of total compensation

at €750m and said Thys-senKrupp could be liable forabout €400m of thatamount.

Deutsche Bahn soughtcompensation after Ger-many’s federal cartel officein July imposed €124.5m infines on four companiesover their involvement inconspiracy to make andsupply rails to DeutscheBahn at inflated, anti-competitive prices over sev-eral years.

The competition author-ity fined a unit of Thys-senKrupp €103m, a unit ofVossloh €13m and two unitsof Voestalpine a total of€8.5m.

Voestalpine acted as awhistleblower in the caseand is not involved in thelawsuit brought by Deut-sche Bahn.

Investigations of anti-competitive practicesinvolving other companiescontinue.

Chris Bryant

Deutsche Bahn seeksdamages over price f ixing

GENERAL INDUSTRIALS

Danske Bank’s chief execu-tive has become one of thefirst leaders of a financialinstitution to issue a gen-eral apology for the lender’sbehaviour leading up to thefinancial crisis.

The apology from EivindKolding, chief executivesince February but deputychairman from 2005-11, capsa recent period of contro-versy for the bank, whichhas been much criticisedfor its new advertising cam-paign as part of efforts toregain the public’s trust.

“In our ambition to meetthe market’s and investors’expectations about growthand to create short-termprofit from ourselves andour customers, we lost acertain amount of focus onour long-term values. Weadmit that and apologise forit,” Mr Kolding wrote in anop-ed for Politiken newspa-per in Denmark.

He also said Danske hadbeen “oblivious to the speedlimit” in the fast growthbefore the 2008-09 crisis.

Mr Kolding, previously asenior shipping executive ashead of Maersk Line,launched a new strategylast month for Denmark’s

biggest bank. “We believethat regaining trust isimportant for all banksincluding Danske Bank,” hetold the Financial Times inan interview a month ago.

But the advertising cam-paign accompanying thestrategy has been hugelycontroversial, predomi-nantly for its use of a pic-ture showing a protesterwith a dollar bill taped overhis mouth with “occupy” onit. After protests from cus-tomers and the OccupyWall Street movement, Dan-ske withdrew that advertbut kept others including awoman voting in parlia-ment with a child on herlap and two women kissing,all under the slogan “NewNormal: the world haschanged and we are chang-ing with it”.

Richard Milne

Danske head says sorryfor bank’s role in crisis

BANKS

Time Warner’s investmentgroup is joining a line­up ofHollywood names includingRobert Downey Jr andElisabeth Murdoch inbacking Maker Studios, thepopular online video networkthat aims to link YouTubeand traditional television,writes Emily Steel.

The companies yesterdayannounced a $36m series Cfunding round, led by TimeWarner Investments.

Founded in 2009, Makerfollowed the strategy oftraditional Hollywood studiosby inking deals with creativetalent and building a40,000­square footproduction facility in CulverCity, California – completewith sound stages,

production offices, prop andwardrobe areas, recordingbooths, make­up artists andmore. The company is hometo some of the most popularonline video stars, includingKassemG, Nice Peter’s, theShaytards and rapperSnoopDogg’s WestFestTV.

Unlike traditional studios,however, Maker primarilydistributes its content online.The company receivedfunding from Google’sYouTube to launch onlinechannels, and now operatesmore than 5,000 channelsthat garner 2bn online viewsa month. The newinvestment round will allowit to continue to sign ontalent and expand intoEurope and other markets,

said Courtney Holt, Maker’schief operating officer.

Existing investors such asGreycroft Partners; theinvestment company forAmerican actor Mr Downey;Ms Murdoch, daughter ofRupert Murdoch; and FUEL:M+C, the investmentcompany for Jon Miller, aformer News Corp executive,all participated in the latestround of funding.

Maker’s other newinvestors include Beirut­based Daher Capital andJon Landau, an AcademyAward­winning film producerwhose credits includeTitanic, Avatar, Dick Traceyand Honey, I Shrunk theKids. The investment is saidto value the company at

about $200m, a personfamiliar with the matter said.

The news comes astraditional media companiesscurry to understand how toexploit the market for onlinevideo, against a backdrop ofa new generation of viewerswho are flocking to themedium and the rise ofinternet­connected TV setsthat blur the divide betweenthe two media.

Meanwhile, a new set ofcompanies are rushing in.Amazon said yesterday thatits film and production armwas moving ahead with pilotshows for its first originalseries, created by talentbehind popular TV showsincluding The Daily Showand the Big Bang Theory.

Robert Downey Jr is among a Time Warner­led group of Hollywood names that announced a $36m funding round AP

Key backing for Maker online studio

Adidas soaks up the punches to deliver sporting success

Here, in no particular order, are sixingredients of success in top-level sport –natural talent, hard work, luck, inferiorrivals, ambition and confidence. Addfavourable macroeconomic conditions andintimate knowledge of the business and itscustomers, and you have a formula forsuccessful chief executives of sportinggoods companies too.

Herbert Hainer, chief executive ofAdidas, strikes me as a wonderful, almostMuhammad Ali-like example of theconfidence required to succeed in thebusiness of sport. Last month he wasabsorbing punches on the ropes as he

informed investors that Adidas, theworld’s second-largest sportswear group bysales after Nike, had lowered its 2012 salesforecast. Then he skipped back into thecentre of the ring and delivered a well-timed blow: “We will see record sales andearnings in 2013 . . . All that I hear fromthe markets is that we are winning marketshare in each and every country.”

Adidas shareholders should thank thesuper-confident Mr Hainer for guiding thecompany skilfully through a year thatthrew up more than its fair share ofunusual challenges. Adidas is set to finish2012 with a stock price up more than 40per cent from its level 12 months ago. Thiscompares with a 33 per cent rise inGermany’s blue-chip Dax-30 index, ofwhich Adidas is a member, and – morepertinently – a meagre 2.5 per centincrease for Puma, Germany’s otherleading sportswear group.

It helped, of course, to be a big sportsgoods company in a big sports year, whatwith the London Olympics and theEuropean football championship finals.Still, Adidas’s success did not come easy.

Mr Hainer began the year knowing thatNike would take over as the official kitsupplier for the NFL American footballleague, a lucrative contract held since 2001by Reebok, an Adidas subsidiary.

Matters at Reebok went fromdisappointing to ugly when a forensicaudit uncovered extensive fraud atReebok’s Indian unit, whose formermanaging director and chief operatingofficer were arrested. A third blow camein September when a financial quarrelerupted between the National HockeyLeague, the association that runsprofessional ice hockey in North America,and the players, who all wear Reebokgear. Not one game has been played allseason, and the three-month dispute iseating into the €100m in annual revenuesthat Adidas gets from Reebok’s NHL-related sales.

Adidas has therefore slashed its 2015sales target for Reebok by a startling one-third to €2bn. This is a brave step. In 2005Adidas trumpeted its $3.8bn acquisition ofReebok as the deal that would park itstanks on Nike’s lawn in the North

American market and enable it to takeaim at the US group’s global domination.Nike still holds the top position, but forMr Hainer there is better news: investorsare keeping Adidas’s share price high inspite of the troubles at Reebok.

One explanation is Mr Hainer’sirresistibly infectious confidence aboutAdidas’s future. A second is that he has ashrewd instinct about where the sportsgoods business must go next to expand itsappeal to customers. In an age ofincreasing life expectancy, this industrycan tap into the desire of older people tojog, walk, go to the gym and play golf. Atthe other end of the age spectrum, MrHainer points out, sport and fitness canhelp address obesity among young people.

These are not the only longer-termtrends that work in Adidas’s favour. Thereis also the Chinese market to consider. Incontrast to steel, textiles and otherwestern industries, the Chinese sportsgoods sector has never threatened thesupremacy of Nike and Adidas.

The US and German giants are muchbetter than China’s Anta Sports and Li

Ning at securing contracts with starathletes and developing brand loyaltyamong sports fans. As Adidas notedconfidently in its guidance to investorslast month, “local players [in China]struggle with declining brand image aswell as inventory and product ageingissues”.

But if Adidas can do it, why can’t Puma,which is based in the same German townof Herzogenaurach and which was bornout of the same pre-second world war shoebusiness? In a nutshell, Puma, owned byPPR, the Paris-based luxury goodscompany, has too many product lines andtoo fuzzy an idea of itself as a premiumsports fashion and lifestyle brand.

Moreover, a recent clear-out of topexecutives at Puma contrasts starkly withthe long-term boardroom stability atAdidas. Mr Hainer can sip his ChristmasSekt with confidence.

Tony Barber is the Financial Times’Europe Editor

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

TonyBarberINSIDE BUSINESS

on Europe

COMPANIES ROUND­UP

More news atFT.com●Carnival said advancedbookings for 2013“continued to be behind”the previous year at lowerprices, as the cruise shipoperator fought to recoverfrom the capsizing of theCosta Concordia inJanuary, in which 32 died.

●BNP Paribas becamethe second French lenderin as many weeks todivest its Egyptian bankafter announcing yesterdaythe sale of BNP ParibasEgypt to Emirates NBD for$500m.

●Samsung will still faceEU charges for havingbreached antitrust rules byrefusing to provide rivalsaccess to its technology,despite the South Koreangroup’s decision to stopseeking a sales ban onApple’s devices in Europe.

●Deutsche Bank’sheadquarters have beensearched by prosecutorsfor the second time thismonth. They visited thebank in connection with aninquiry into whether JosefAckermann, the ex­chiefexecutive, and otherformer managers gavefalse testimony in a courtcase last year. Theallegations are denied. Eivind Kolding: ‘regaining

trust’ important for banks

Contracts & Tenders

DECEMBER 21 2012 Section:Companies Time: 20/12/2012 - 18:05 User: vickersj Page Name: CONEWS1, Part,Page,Edition: EUR, 14, 1

FINANCIAL TIMES FRIDAY DECEMBER 21 2012 ★ 15

COMPANIES

For yet another year since the finan-cial crisis took hold, many companiesaround the world shied away fromdealmaking, opting instead to focuson fortifying their balance sheets andreturning capital to shareholders.

Their caution was understandable.Faced with malaise in the eurozone,slowing growth in emerging markets,and political elections in France, theUS and Japan, many executives anddirectors thought doing no deals wassafer than forging ahead withmegadeals in uncertain times. As aresult, worldwide M&A volumes fell5.2 per cent to $2.06tn from 2011,according to Mergermarket.

Some of these reasons for prudencewill persist next year. The eurozonerecovery remains tepid, emergingmarkets are not longer booming andthe US faces a looming fiscal cliff.

Despite these persisting woes, manydealmakers believe that there is somuch pent-up demand that moredeals will simply have to get done in2013.

“Many companies this year decidednot to do deals, but to return capital,”says Chris Ventresca, co-head ofNorth America M&A at JPMorgan.“As we go into the next year, theywon’t have anything new to talkabout other than modest, organicgrowth, and pressure will grow forthem to do deals to drive their stockprice higher.”

This thesis is supported by a strongfinish to the year. A flurry of bigdeals, such as SoftBank taking controlof Sprint Nextel, and Freeport-McMoRan Copper & Gold’s purchaseof Plains Exploration and Productionand McMoRan Exploration, liftedfourth-quarter volumes comparedwith the previous year.

“The back end of the year, and thefourth quarter in particular, youcould really feel an increase in busi-ness across the board,” says ScottLindsay, co-chairman of global M&Aat Credit Suisse.

Bankers say that activity has pickedup, too, stoking hopes of a brisk startto 2013.

“Last year at this time there was alot of volatility in the market,” saysRobert Kindler, global head of M&A atMorgan Stanley. “This year there’s alot less volatility, so there are moreconversations going on. It’s takinglonger to do deals, but the level ofconversations this year comparedwith last year is much higher. It’s agood cause for optimism.”

North America was as usual at thecentre of dealmaking, accounting for41 per cent of global activity. Mean-while, emerging markets targetsclimbed slightly, up 2.3 per cent,boosted by Rosneft’s acquisition ofTNK-BP. This dynamic looks set tocontinue next year, with modest

growth in the US looking good com-pared with uncertain prospects else-where.

“The US is the best positioned econ-omy in the world right now from anindustrial, technology and service per-spective,” says Michael Carr, head ofM&A in the Americas for GoldmanSachs. “If you look at growth ratesover the next three to five years theUS has the best opportunity to pro-duce the most durable and sustainedgrowth. If you’re running a large glo-bal business and you don’t have ameaningfully large exposure to theUS, you’re going to lag.”

Even low single-digit growth in theUS will probably prove more attrac-tive than uncertain prospects inEurope and Asia.

“If you see 2 to 3 per cent sustaina-ble growth here, that’s better thansouthern Europe, better than north-ern Europe,” says Lee Meyerson, headof M&A at law firm Simpson Thacher.“Companies will still be looking atAsia as a longer-term growth opportu-nity, but now and for the foreseeablefuture, the US remains the largesteconomy in the world.”

In Europe, deal volumes were down10 per cent for the year and despitethe late flurry of deals posted theworst quarter in the eurozone since2010. From this low base, some deal-makers expect a return to growth.“I expect 2013 will see a recovery,which will be more pronounced inEurope where uncertainties have beengreatest,” says Wilhelm Schulz, headof Emea M&A at Citi. “Sectors such astelecoms and utilities will see moredealmaking as they face ratings pres-

sure while capex requirements areincreasing.”

While the value of bids out of theeurozone into the US jumped 106.5 percent over the past year, the value ofUS bids into the region dropped 12 percent. However, some expect dealmak-ing in Europe next year to be fuelledby bargain hunters. “US deals intoEurope are largely driven by the ques-tion, ‘Is it a good value?’” says SteveBaronoff, chairman of global M&A atBank of America Merrill Lynch. “It’s

still hard to determine if we’re at thebottom with Europe.”

Before M&A enjoys a renaissance,however, US politicians will have toreach a new agreement on taxes andavoid the fiscal cliff.

“If we can have a rational solutionto the fiscal cliff, we have the opportu-nity to have an improved M&A yearin 2013,” says Scott Barshay, head ofCravath’s corporate department. “Ifwe go over the cliff, then we’re likelyto have a down M&A year.”

Pent­up demand set to drive deals in 2013News analysisWhile many reasons forthis year’s prudence willremain, a rise in M&A isexpected, say David Gellesand Anousha Sakoui

By Tobias Buck in Madrid

Spain took another crucialstep towards overhaulingits troubled banking systemyesterday after the Euro-pean Commission signed offon a government plan toinject €1.87bn of freshcapital into four Spanishlenders.

Spanish officials hopethat the move will completethe process of recapitalisingthe country’s banking sec-tor, which has nowabsorbed close to €40bnfrom the bank bailout fundagreed by European Unionministers last June.

Spain’s lenders have beenhit particularly hard by therecent sharp recession andhousing bust, which forcedbanks to realise painfullosses on their loan portfo-

lio and property assets. Thepast few months have seenan intense effort by Madridand Brussels to acceleratethe clean up of the sector,through a sharp rise in pro-visions, injections of capitaland the creation of a state-run bad bank that will takedud loans and assets off thebooks of Spanish lenders.

Under the terms of thecommission agreement,Banco Mare Nostrum(BMN) will receive €730m inadditional capital, with€604m going to BancoCEISS, €407m to Caja3 and€124m to Liberbank.

All four groups were cre-ated over the past two yearsthrough a series of mergersbetween cajas, the regionalsavings banks that havebeen at the heart of theSpanish banking crisis.Many cajas expanded rap-idly during the boom years,

lending generously to prop-erty companies and homebuyers, and later foundthemselves particularlyexposed to the housingdownturn.

The banks will now haveto drastically shrink theirbalance sheets, close or sellall their branches outsidetheir home region and refo-cus their business on retailbanking and lending tosmall and medium sizedenterprises.

Once the capital injectionhas taken place, the Span-

ish state will become themajority owner of bothBMN and Banco CEISS.Caja3 is already in theprocess of merging withanother Spanish lender, butthe remaining three bankshave to be listed or sold by2017.

Last month, the EuropeanCommission signed off onthe restructuring plans forthe four weakest Spanishlenders with the greatestneed for fresh capital. Ban-kia, CatalunyaCaixa, NCGBanco and Banco de Valen-cia will receive close to€37bn, with Bankiaaccounting for about €18bnof the total.

“We have managed tobring under way a thoroughrestructuring of eight banksin a matter of just a fewmonths,” Joaquín Almunia,the EU competition com-missioner, said yesterday.

Brussels agrees Spanish bank boostBANKS

Record year for junk bonds as investors chase higher yields

Overall global debt issuancerose in 2012 buoyed by arecord year for junk bondsbut problems in theeurozone, regulatoryconcerns and economicgrowth worries curtailedsales in other parts of thebond market, writes MaryWatkins.

Global bond issuanceincreased 5 per cent to$5.95tn in 2012, with bondsales by sovereigns andagencies only marginally upon last year. Overallissuance by financialinstitutions was tempered byeurozone woes.

However, global high yieldcorporate bond issuance hita new record in 2012 asnon­investment gradecompanies took advantageof strong investor demandand low coupons to hoarddebt, according to data fromThomson Reuters.

With investors chasingbetter yielding assets in theface of record low rates ontraditional haven assets suchas US Treasuries and Bundsand significant pent updemand after a slower 2011,high yield corporate issuancerose 38 per cent to $397bnthis year. In the fourthquarter coupons averaged7.604 per cent, shy of thisyear’s record lows, versusabout 9 per cent over thepast decade.

Overall corporate issuance,including from investmentgrade companies, also rose,buoyed by a string of dealsin the US from groups suchas United Technologies,Kraft and Intel.

“Corporates havebenefited this year from thefact that they are seen as asafe harbour. Companieshave streamlined, theirearnings are good and post

Lehman they are leaner andmeaner,” said BrendonMoran, global co­head ofcorporate origination, DCMat Société Générale. “There’salso been a theme ofdisintermediation of thebanks. Companies are moreinclined to go to the bondmarkets.”

The European CentralBank’s offer to providethree­year loans to banksvia its longer­termrefinancing operation at theend of last year averted aliquidity squeeze in Europe’sfinancial system but reinedin overall supply.

However, it was ECBpresident Mario Draghi’spledge in July to do“whatever it takes” to savethe eurozone, accompaniedby the launch of the ECB’sprogramme to buy thesovereign debt of countriessuch as Spain and Italy, that

helped remove the tail riskof a eurozone break­up.

ECB action paved the wayfor a rally that saw yields oneurozone peripheralgovernment bonds drop andencouraged a spurt ofissuance by banks.

“The fact that both Irishand Portuguese issuers wererecently able to access theunsecured market is strongtestament to the currentstate of play and, barringany negative headlines, Idon’t see that changing aswe go into 2013,” saidMelissa Smith, head of highgrade debt capital markets,Emea, at JPMorgan.

She said that whileworries over growth and thefiscal cliff of tax rises andspending cuts in the UShang over bond markets,action by central banks hadgiven investors and issuerscause for some optimism.

‘If you see2 to 3per centsustainablegrowth here,that’s betterthansouthernEurope,better thannorthernEurope’

ON FT.COMExamine theperformance ofinvestment banksover 2012 includingtotal feesgeneratedwww.ft.com/leaguetables

For Europe’slargest privateequity houses, theUS market hasbeen a blessingwww.ft.com/usbuyouts

Predictions for next year

Bill ConwayCo­Founder and Co­CEO,The Carlyle Group

The US is the best place inthe world to invest now andfor 2013, as energy pricesremain constrained and theUS housing market recovers.I don’t expect the deductibilityof interest to be changed inthe US. The spectacular dealswill be done in Europebecause of the lack ofliquidity and the need to sellassets. Growth can cover upa lot of problems and untilrecently China and Brazil weregrowing at a very robust rate.But today you have to bemore selective when buyingcompanies in the emergingmarkets because not all partsof their economy are growingat the same rate.

Barry RosensteinFounder,Jana Partners

The environment for activismis as good as we’ve seen in avery long time. In many casesyou have well meaningmanagement, but they are tooclose to the situation, or theyhave the wrong incentives,when there are so manythings they could be doing tocreate value, and that’s evenbefore factoring in the returnof M&A.

Andrea OrcelHead of investmentbanking at UBS

The equity, and therefore theM&A market, offer somevalue, while the risk free ratein bonds broadly does not.2013 should be a year whenthe allocation to equityproducts increases and if itdoes so, confidence will startrecovering too. Carefullyunwinding the bond bubblewill be a critical job for centralbankers, investors andinvestment bankers alike.

Scott BarshayHead of corporatedepartment at Cravath

Once the uncertainty clears upthere’s a lot of good reasons forcompanies to do M&A. They’vegot relatively high valuationsthey need to support, they’vecut costs to the bone, and thedebt markets are very robustright now. When you take allthat together, the fundamentalsare present for a strong M&Aenvironment.

Raymond McGuireGlobal head, corporate andinvestment banking, Citigroup

As you have a more constructivepolitical environment, a moreconfident macroeconomicenvironment, and as the systemgets more comfortable with theregulatory overlay, you will haveaddressed three of the majorfactors that have dampened theconviction of CEOs. It’s going totake a while, this is not going tochange immediately. But Ibelieve there will be a return toconfidence, which will increaseactivity. Investors are going todemand growth.

Gene SykesGlobal head of M&Aat Goldman Sachs

Borrowing rates and currentcredit conditions would suggestthat the returns from M&A arestarting to look very attractive,helping close the gap betweenbuyers and sellers. There isdefinitely a shift with corporatesto a “lets get things done”mindset as they’ve grown wearyof operating in a state ofsuspense. Industries and sectorssuch as technology, naturalresources and healthcare, thatare going through fundamentalchanges, are likely to generateM&A deals.

‘A restructuring ofeight banks hasbeen broughtunder way’

Joaquín AlmuniaEU commissioner

DECEMBER 21 2012 Section:Companies Time: 20/12/2012 - 19:02 User: vickersj Page Name: CONEWS2, Part,Page,Edition: EUR, 15, 1

16 ★ FINANCIAL TIMES FRIDAY DECEMBER 21 2012

LIBOR SCANDAL

UBS’s $1.5bn settlement formanipulating interbanklending rates is the fourthseparate regulatory findingagainst the Swiss group inas many years – underlin-ing the failure of bank exec-utives to reform the corpo-rate culture.

Settlement documentsreleased on Wednesdaydescribed myriad failings,some starting in 2005 butothers continuing to late2010 – nearly two yearsafter the bank was found inbreach of regulations in theUK and US.

In January 2009, the bankpaid $780m to US authori-ties after admitting helpingUS citizens evade payingtaxes. Ten months later, itsettled with UK authoritiesover lax controls in itswealth management divi-sion, and

Regulators found thatuntil September 2009, UBSallowed traders who mademoney betting on Liborrates to be put in charge ofthe bank’s daily rate settingprocess – and, for much ofthe time, had no rules gov-erning this inherent conflictof interest.

According to the regula-tors’ investigations, fiveseparate internal audits atUBS failed to spot the ratefixing. While the bank’s2008 compliance review rec-ognised the risk of Liborsubmissions being dis-torted, the Swiss regulator

Finma found that UBS hadconcluded there was nocorrelation between its sub-missions and trading posi-tions.

A second compliancereview in 2009 simply drovethe traders to camouflagetheir requests as “marketcolour”, the UK’s FinancialServices Authority said.

UBS’s internal watchdogsalso missed evidence thattraders were engaging inwash trades – buying andselling the same securitiessimply to earn commissionsfor the brokers who werehelping them to manipulateinterest rates.

In 2009, the UBS managerin charge of “overallresponsibility for the integ-rity” of the bank’s Liborsubmissions was using anelectronic chat room whena yen Libor submitter askedtraders for rate requests. Hereacted by sending the sub-mitter a private messagesaying: “Just be carefuldude.” The submitterresponded: “I agree weshouldn’t have been talkingabout putting fixings forour positions on publicchat.”

David Meister, head of theCommodity Futures Trad-ing Commission (CFTC)enforcement division,argued that this approachto supervision encouragedothers. “UBS’s lack of sys-tems and controls and laxoversight was the Petri dishthat spawned a widespreadculture of using rate sub-missions as mere tools toincrease the success of trad-ers’ portfolios, and to makefalse reports to protect thefranchise,” he said.

Although clients begancomplaining that UBS wassubmitting Libor estimatesto benefit its trading bookin 2005, and the CFTCstarted asking UBS for doc-uments in 2008, the bankdid not uncover evidence oframpant rate-fixing untilthe end of 2010.

It represents the latest ina series of compliance fail-ings that have occurredacross the bank’s divisions,from investment banking towealth management.

When the FSA made anunsuccessful attempt lastyear to fine its ex-chiefexecutive of wealth man-agement, a London tribunalheard a litany of seriousfailings – which were notdisputed by UBS – and alle-gations of a culture predi-cated upon “revenue at allcosts”.

Just last month, a Londonjury convicted one of UBS’sformer traders, Kweku Ado-boli, of the biggest bankingfraud in British historyafter he lost $2.3bn in roguetrades. The FSA also finedthe bank £29.7m for allow-ing the unauthorisedtrades.

The trading loss is nowseen among UBS staff asthe new benchmark ofwrongdoing, with reports ofrelief among employeesthat the bank’s $1.5bn glo-bal Libor settlement was“only half an Adoboli”.

UBS has implementedmajor changes to personneland procedures, startingwith its decision to hire anew general counsel in2008.

Since then, 600 membersof the bank’s 2,000-stronglegal and compliance teamhave been replaced throughattrition and lay-offs. UBSalso restructured the teamto ensure compliance staffall reported to, and hadtheir pay decided by, UBS’sgeneral counsel – ratherthan the heads of businessdivisions.

“We believe in the goldenrule: if you control pay andpromotion, you can buildthe character necessary tostay the course and beuncompromising, and thecourage necessary to steerthe business into saferwaters,” the bank said.

The group threw evenmore resources at compli-ance after it first becameaware of the yen libor ratefixing attempts in 2010.

An internal team of fourthat began conducting theinvestigation was supple-mented at times by a teamof 60 external lawyers, and350 contract lawyers, toreview 250 million pages ofinformation.

Regulators’ investigations find that five separate internal audits at UBS over several years did notspot the rate fixing. Brooke Masters, Caroline Binham, Kara Scannell and James Shotter report

Failure to reform costs UBS dearNews analysis

LiborThe daily London interbankoffered rate is the collectivename for a set of keybenchmark rates that reflectshow much it costs banks toborrow from each other invarious currencies. It is thereference rate for about$350tn of financial productsfrom home mortgages tocredit cards – so smallmoves in the reference ratecan have significant knock­oneffects in the economy.

Explainer

‘UBS’s lack ofsystems andcontrols and laxoversight . . .spawned a cultureof using ratesubmissions asmere tools’

Libor scandal in numbers

$1.5bnPenalties agreed to be paid by UBS to US, UK and Swiss regulators

-1.6%Percentage fall in UBS

share price since Tuesday's close

30%Turnover of UBS staff working in legal and

compliance since 2008

250mNumber of pages

reviewed by UBS in its internal Libor investigation

410Number of lawyers working on Libor investigations for UBS, including a team of 60 external lawyers and

350 contract lawyers £15,000Amount spent per quarter by UBS on

payments to brokers for their assistance

over 18 months

2,000Requests made to

influence Libor, including 1,000 involving

interdealer-brokers 45UBS employees

involved in, or knew about rate rigging

$350tnEstimated value of

contracts referenced to Libor

SFr2bn toSFr2.5bn

Net loss UBS expects to report in Q4 2012

$450mSettlement Barclays

paid UK and US regulators in June for

alleged rate manipulation$236m

Estimated value Tom Hayes, a former UBS trader at the centre of US

authorities’ allegations about Libor manipulation, generated for UBS

between 2007 and Sep 2009

By FT reporters

The former trader whofaces criminal charges inthe UBS rate-fixing probehas been linked to ratestraders at Royal Bank ofScotland, JPMorgan Chaseand Deutsche Bank, accord-ing to a US criminal indict-ment filed in the case.

A fourth bank, Citigroup,has also been publicly tiedinto the sprawling Libormanipulation investigationthrough the indictment ofTom Hayes. Prosecutorsalleged that Mr Hayes, whoworked at both UBS andCiti in the last decade, triedto influence yen Libor sub-missions to benefit hisderivatives position.

The indictment identifiesthe institutions only bytheir headquarters’ loca-tions, but several peoplefamiliar with the investiga-tion confirmed which banks

were involved. All fourbanks declined to comment.Mr Hayes and his lawyercould not be reached forcomment.

The people also confirmedthe identity of two inter-dealer brokers describedonly by letters in a separateregulatory settlementbetween UBS and the UKFinancial Services Author-ity.

RP Martin is the firmwhere the FSA alleges thata few employees benefitedfrom nine wash trades –matched buy and sell trades– placed purely for the pur-poses of generating £170,000in commission.

The brokerage said: “Thismatter relates to a smallnumber of individuals andan aspect of the company’sbusiness which comprises asmall part of its overallturnover. The company con-tinues to co-operate fullywith regulators.” It declinedto comment further.

ICAP, the interdealer bro-

ker founded by MichaelSpencer, is the companythat the FSA said receivedquarterly payments of£15,000 from UBS for provid-ing a “fixing service”. ICAPdeclined to comment exceptto repeat a prior disclosuresaying that the company isco-operating with informa-tion requests from severalregulatory authorities. Nei-ther RP Martin, nor ICAP

have been accused ofwrongdoing.

In one March 2007 conver-sation, an RBS trader isalleged to have asked MrHayes to make sure UBS’ssubmissions to the rate set-ting process were on thelow side. “Can u go fr loweverything plse?” the docu-ment says the trader wrote.

People close to the situa-

tion say RBS has fired fourpeople and has entered intolate-stage settlement negoti-ations with US and UK reg-ulators. RBS’s chief execu-tive Stephen Hester hassaid the bank is hoping toconclude a deal by the endof February and peoplefamiliar with the talks saythe bank expects to paymore than the £290m finepaid by Barclays but lessthan UBS.

Two people have leftDeutsche in connectionwith the Libor probe.

Prosecutors allege in theindictment that a Deutschetrader and Mr Hayes“agreed to fix the price ofinterest rate derivativeproducts”.

Citi and JPMorgan haveeach acknowledged thatthey are under investiga-tion; two people have leftJPMorgan over the scandal.Citi has already settled withJapanese regulators overefforts to manipulate theTokyo interbank rate.

Trader linked to brokers at four banksRepercussions

Star trader wasrichly rewardedTom Hayes, the formerUBS trader charged withconspiring to manipulateyen Libor rates hundredsof times over three years,started his career as a22­year­old trainee forRoyal Bank of Scotland,writes Michael Stothard.

Described by an oldclassmate as an“incredibly smart geek”who was “nice, soft­spoken and calm”, he tookonly five years to rise to ajob with UBS in Tokyo asone of the most significantplayers in the yen interestrate swap market.

Now 33 and the fatherof a one­year­old boy,Mr Hayes generatedhundreds of millions ofdollars in trading revenuesover three years bettingon interest ratemovements for the bank,according to the USCommodity FuturesTrading Commission.

He is likely to havegenerated millions forhimself as well. The Swissregulator Finma hasreported that traders atUBS could potentiallytriple or even sextupletheir annual salaries withbonuses for good results.

The documents releasedby the US Department ofJustice this week showtraders well aware of thepotential rewards. Onebroker allegedly wrote to aUBS derivatives trader:“Think of me when yur onyur yacht in monacowon’t yu.”

US prosecutors allegethat in Tokyo from 2006to 2009 Mr Hayes’ssuccess was driven by hisattempted manipulation ofthe yen Libor rate on atleast 335 of 738 tradingdays in collusion withother traders and brokers.

Mr Hayes supposedlysaid that a single basispoint – or 0.01 per cent –move in the final yen Liborrate could result in a $2mprofit for his trading book,according to prosecutors.It is alleged that onoccasion UBS’s Libor ratesubmission was moved byseveral basis points.

The allegations thisweek state that Mr Hayesacted with others to fixthe rates. Roger Darin, atrader who worked forUBS in Singapore, Tokyoand Zurich and was atcertain times responsiblefor the yen Liborsubmissions at UBS, wasalso charged.

Less is known aboutMr Darin, but according tohis LinkedIn profile, heobtained a bachelor’sdegree in businessadministration from theadult­education college KSKaderschulen in St Gallen,east Switzerland, where hestudied in the mid­1990s.

Mr Hayes, who left UBSin 2009 to join Citigroupbriefly, could not bereached for comment.Mr Darin’s lawyer declinedto comment.

By Caroline Binhamin London andKara Scannell in New York

For a while at least, manip-ulating Libor was a profita-ble business for UBS. But arecord $1.5bn fine to settleUS and UK investigationsmay be only the initialprice the bank must pay asa result of the scandal.

Tom Hayes, the Britishformer UBS and Citigrouptrader charged by the USauthorities on Wednesday,made UBS at least $260m byhimself in his three years atthe bank, some reaped bymanipulating yen-denomi-nated Libor, according tofindings released by the USCommodity Futures Trad-ing Commission.

His reputation as one ofthe bank’s most valuabletraders was cemented whenhe took up a Tokyo-basedposition as a trader of deriv-atives pegged to yen Libor.Such was his status withinthe bank that he was givena risk limit of as much as$3m per basis point – one100th of a percentage point– the CFTC said, in an indi-cation of just how much

money could be made orlost by tiny movements inLibor, the benchmark ratethat underpins $350tn worthof notional swaps.

It was the “enormous vol-umes” of trades and “largetrading risks” employed byMr Hayes, 33, that made theyen swaps market viable,the regulators found.

“His trades immediatelyinjected significant liquidityin a previously illiquid mar-ket,” the CFTC wrote. “Notsurprisingly, brokers wereeager to develop relation-ships with the senior yentrader in an effort to obtaina piece of his business.”

Prosecutors now allegethat this business was ille-gal. Mr Hayes’ London-based lawyer did not replyto calls or an email seekingcomment.

If UBS was makingmoney via illegal trades,others lost.

Among the biggest losersare, allegedly, Fannie Maeand Freddie Mac, the USgovernment - contro l l edmortgage groups, whichtogether own or guaranteeroughly half of all outstand-ing US home loans. A USregulator claimed onWednesday that the groupsmay have lost more than

$3bn in uncollected interestpayments.

The auditor of the regula-tor, the Federal HousingFinance Agency, recom-mended pursuing a lawsuitto recoup costs.

If filed, it would not bethe only Libor-related law-suit tied to home loans. Aclass action filed by an Ala-baman pensioner accusesUBS and 11 of the other big-gest banks of being incen-tivised to manipulate Liborto a higher rate on certaindates on which adjustablemortgage interest rateswere reset. This resulted inhomeowners paying morebetween 2000 and 2009,according to the complaint.

UBS is also a respondentin several other classactions filed over the past18 months since the globalprobe into at least 20 banks

and interdealer brokersgained pace.

Unlike Barclays – theonly other bank to have set-tled US and UK Liborprobes – UBS admitted thatat times its manipulation ofrates was successful. Thatcould provide a road map toclass action lawyers and thestate attorneys-general whoare investigating whethertheir constituents wereharmed by the conduct.One obstacle plaintiffs law-yers and state investigatorshave faced so far is linkingan artificial movement to abond they purchased orhome mortgage theyobtained.

Among the many Libor-related US claims awaitingapproval to proceed is anantitrust suit brought bythe Mayor of New York andthe City of Baltimore. UBSis one of 16 defendants fac-ing potential damages thatcould rise as high as $1tn.

“We continue to workclosely with experts, coun-sel and interested partiesand the evidence of manipu-lation found within UBSwill assist us considerablywith progressing the antici-pated action,” said LianneCraig, a lawyer at Hausfeld,the plaintiffs’ law firm.

Record f ine unlikely to be the endCounting the cost

£170,000Commission allegedlyearned by nine wash trades

Fannie Mae was allegedlyamong the biggest losers

Pressure is growing on Swissregulator Finma after two ofthe country’s political partiescalled for the resignation ofits head of bankingsupervision, Mark Branson,who was in charge of UBS’sJapanese securities unitbetween 2006 and 2008,writes James Shotter inZurich.

In the Libor settlement onWednesday between theSwiss bank and four globalregulators, including Finma, itbecame clear that employeesat UBS’s Japanese unit hadbeen heavily involved inattempts to manipulatevarious benchmark ratesaround the world.

According to Finma’s ownfindings “a large part of theinterference with submissionsto benefit proprietary tradingpositions at UBS” can beassigned to a trader whoworked in the Tokyo officebetween 2006 and 2009.UBS’s Japanese unit pleadedguilty to wire fraud as part ofits settlement with the USDepartment of Justice.

In light of the revelations,Switzerland’s Green Partydemanded a parliamentaryinvestigation into MrBranson’s position at Finma,and into the watchdog’shandling of the Libor affair.

“Mark Branson has toresign” said Daniel Vischer,the Green’s MP for Zurich.“As long as he remains in hisrole, Finma has a credibilityproblem.”

Switzerland’s socialist partyalso called for Mr Branson toresign, arguing that “Finma’scredibility cannot bepreserved if someone, whoas a manager wasresponsible for one of thebiggest scandals in modernfinance, remains in positionas head of its banksupervisory activities.”

However, Patrick Raaflaub,the head of Finma, defendedMr Branson, who recusedhimself from the investigationinto UBS.

“There have now been fiveinvestigations into themanipulation of Libor – bythe FSA, the DoJ, the CFTC,the Japanese FSA andFinma – and not one ofthem has found anyindication that Mark Bransonknew of or was involved inwrongdoing relating to Liborin any way,” he said, addingthat Finma would co­operatewith any parliamentaryinquiry.

Mr Raaflaub also dismissedsuggestions that Mr Bransonshould have been aware ofproblems at his unit.

ProfileMark Branson

MORE ON FT.COM●Libor LexiconDo you know your Libor fromTibor? Test yourself with ourguide to the key terms of therate­rigging scandal, fromlowballing to wash tradesExplainer:www.ft.com/liborlexicon

Contracts & Tenders

DECEMBER 21 2012 Section:Companies Time: 20/12/2012 - 19:47 User: vickersj Page Name: CONEWS3, Part,Page,Edition: EUR, 16, 1

FINANCIAL TIMES FRIDAY DECEMBER 21 2012 ★ 17

COMPANIES

By Andrew Hill

Only three chief executivesfrom mainland China makethe top 100 in the latestranking of corporate lead-ers’ long-term performance– indicating that Chinesecompanies still have workto do to catch up with glo-bal competitors.

The ranking is based ongrowth in shareholderreturns and market capitali-sation achieved during thetenure of chief executivesappointed since 1995. Itincludes chief executiveswho have since left office.

The 2013 list, publishedonline today by HarvardBusiness Review (HBR), isled by Steve Jobs, the latechief executive of Apple,who led the 2010 ranking,ahead of Jeff Bezos of Ama-zon.com and Yun Jong-yong, ex-chief executive ofSamsung Electronics.

Apple’s share price hasfallen but, during Mr Jobs’tenure, the technology com-pany’s market value rose byan adjusted $359bn. “If youwant to create a lot ofshareholder value, it paysto take over a company thathasn’t been doing well.”

The highest rankingmainland Chinese chiefexecutive on the list is LiJiaxiang, former chief exec-utive of Air China, atnumber 17. Wang Dong-ming of Citic Securities andDong Mingzhu of Gree Elec-tric also made the top 100.

Chinese business leaderstold the study’s authors –Morten Hansen of Univer-sity of California, Berkeley,and Herminia Ibarra andUrs Peyer of Insead – that“as the country’s companiesbecome more innovation-

focused, their performancewill improve”.

US companies’ chief exec-utives took six of the top 10spots, but punched belowtheir weight. Their averageposition among the 3,143chief executives analysedwas lower than that ofcounterparts from LatinAmerica, India and the UK.“US CEOs have not been ascompetitive on a globalscale as one might think.”

The study assesses thelong-term performance ofcorporate leaders, at a timewhen shareholders arefocusing on short-termshare price and earningsmovements. In an interviewwith HBR, Mr Bezos said:“If you’re inventing and

pioneering, you have to bewilling to be misunderstoodfor long periods of time.”

The authors found no cor-relation between financialperformance and perform-ance on social and environ-mental measures.

The top 100 chiefs gener-ated an average total share-holder return of 1,385 percent, and added an adjusted$40.2bn to their companies’market capitalisations dur-ing their tenure. The bot-tom 100 – which HBR doesnot name – saw returns fall57 per cent on average, andpresided over a $13.6bn dropin market value.

www.ft.com/topceoshbr.org

Chinese trailrankings oftop 100 CEOsGENERAL INDUSTRIALS

‘If you’re inventingand pioneering, youhave to be willing tobe misunderstoodfor long periods’

In the past decade, JeffSprecher and Interconti-nentalExchange have beenthe exchange industry’s bigupstarts.

An ultimately ill-fatedattempt to buy the ChicagoBoard of Trade in 2007 waslaunched when Mr Sprecherdelivered his bid during theindustry’s big annual con-ference, slipping his offerunder the hotel door of thethen-CBOT chairman.

As the ICE chief execu-tive acknowledged yester-day: “I like competing and Ilike competing againstincumbents and I like goinginto markets and seeingwhere we can effectchange.”

Indeed Mr Sprecher hasemerged as a central forcein turning what was once asleepy sector into one of theliveliest areas of mergersand acquisitions in the pastdecade. From start-up in2000, Mr Sprecher has builtup ICE through a series ofdeals into energy and com-modities trading exchangevalued at $9bn.

Now the ambitious,relentlessly positive MrSprecher has taken hismost ambitious shot yet;

buying NYSE Euronext,owner of the totemic NewYork Stock Exchange, tosee if he can effect changethere.

Analysts estimate thatthe combined group willhave a market capitalisa-tion of about $15bn. Thatsuggests that Mr Sprecher’sbusiness is moving closer toreaching the dominant glo-bal exchange operator, CMEGroup, which has a marketvalue of about $17bn.

The acquisition of the USequities business marks adeparture for ICE as it hasnever had an interest inshare trading before.Indeed, he stressed that hisreal interest lay in NYSEEuronext’s futures businessin April 2011.

At the time ICE had com-bined with Nasdaq OMX totry to break up an agreedbut doomed mergerbetween NYSE Euronextand Deutsche Börse.

NYSE Euronext itself hasbeen built by mergers andacquisitions. Three Euro-pean stock exchangesformed Euronext, whichthen bought the London-based Liffe derivativesexchange, before mergingwith NYSE in 2007.

Among Mr Sprecher’sfirst tasks was to stress thatICE would be keeping theUS equities business and itsdistinctive Wall Streetbuilding. “It is a tremen-dous revenue and cash flowgenerator,” said MrSprecher. “When you startto peel away parts of theonion, you see that they are

a very healthy equitiesbusiness that looked a lotmore attractive than whatwe appreciated.”

“While equities trading islow margin, the listingsbusiness and data are veryhigh margin. Everyonewants to list on NYSE andthe listings throw off a lotof cash,” said one adviseron the deal.

But it is far from a fullconversion to equities. Atthe same time NYSE andICE signalled they plannedto spin off the Europeanequities, options and indi-

ces businesses either via alisting or sale, should regu-lators allow. “We want toexpose what a good solidcompany Euronext is iforganised properly,” saidMr Niederauer.

NYSE’s technology busi-nesses will also be givenonly until the completion ofthe deal, expected in thesecond half of 2013, to provethemselves worthy of fur-ther investment.

The merged companyenvisages a further $300mof cost savings on top of the$150m Mr Niederauer hastargeted in the next twoyears for NYSE Euronext.

But ultimately the realprize for ICE is Liffe, thederivatives exchange, andthe opportunity to expandinto interest rate deriva-tives. That was the opportu-nity denied to Mr Sprecherwhen he lost out to CME forCBOT in 2007. Interest rate

derivatives are among theworld’s largest assetsclasses and used increas-ingly to offset risk.

The deal will make ICEthe third-largest derivativesmarkets operator in theworld by number of con-tracts traded and put pres-sure on CME, the marketleader, and its other rivalDeutsche Börse as proposedrules are set to shake upthe sector.

Global regulators want tomove more OTC derivativestrading on to transparenttrading exchanges, andmake more deals be proc-essed through clearinghouses. Exchanges are aim-ing to grab market sharefrom banks and brokerswith a range of productsthat mimic traditional prod-ucts like swaps.

However volumes on bothNYSE and ICE have fallenabout 15 per cent this year

on weak investor appetitefor trading and flat globalinterest rates.

“Despite the current lowinterest rate environment,this is an area Jeff hassought for over five years,”says Rich Repetto, analystat Sandler O’Neill. “Withthe OTC, Dodd-Frank regu-latory transformation, thisacquisition makes the com-petition between exchangesonly more interesting.”

Illustrating how fierce thecompetition has become,Morgan Stanley yesterdayagreed to buy a stake of US-based start-up ErisExchange, which specialisesin the so-called “swapfutures” that are expectedto gain favour.

Reporting by Philip Staf-ford in London and ArashMassoudi and David Gellesin New York

See Markets

ICE chiefmakes hisbiggest betwith dealINVESTMENT COMPANIES

News analysisAgreed purchase ofNYSE Euronexthas put exchangecloser to main rival,write FT reporters

‘I like competingand I like going intomarkets and seeingwhere we caneffect change’

Traders on the NYSE yesterday: ‘Everyone wants to list’ on the exchange, says ICE chief Jeff Sprecher Reuters

DECEMBER 21 2012 Section:Companies Time: 20/12/2012 - 19:45 User: hendrym Page Name: CONEWS4, Part,Page,Edition: USA, 17, 1

18 ★ FINANCIAL TIMES FRIDAY DECEMBER 21 2012

DECEMBER 21 2012 Section:Ad Page Time: 20/12/2012 - 11:06 User: leej Page Name: AD FILLER, Part,Page,Edition: EUR, 18, 1

FINANCIAL TIMES FRIDAY DECEMBER 21 2012 ★ 19

Full fund performance data atwww.ft.com/fundsMARKETS | MANAGED FUNDS SERVICE

20 ★ FINANCIAL TIMES FRIDAY DECEMBER 21 2012

Fund Bid Offer D+/- Yield

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 € 13.02 - 0.08 0.00

IVI European Fund GBP £ 14.70 - 0.15 0.00

Invesco (LUX)Dublin 00 353 1 439 8100 Hong Kong 00852 3191 8282FSA Recognised

Invesco Management SA

Invesco Asia Balanced A dist $ 15.86 - -0.02 4.49

Invesco Asia Consumer Demand Fund A income $ 12.39 - 0.03 0.35

Invesco Asia Infrastructure (A) $ 13.65 - -0.01 1.17

Invesco Asia Opportunities Equity A $ 94.46 - -0.35 0.00

Invesco Absolute Return Bond Fund A € 2.81 - 0.00 0.00

Invesco Balanced Risk Allocation Fund A € 14.27 - -0.01 0.00

Invesco Capital Shield 90 (EUR) A € 11.58 - -0.01 0.00

Invesco Emerging Europe Equity Fund A $ 11.20 - 0.03 0.00

Invesco Emerging Local Currencies Debt A Inc $ 11.18 - 0.01 5.32

Invesco Emerging Mkt Quant.Eq. A $ 12.03 - -0.02 0.00

Invesco Energy A $ 23.86 - -0.13 0.00

Invesco Euro Corporate Bond Fund (A) € 15.45 - 0.01 0.00

Invesco Euro Inflation Linked Bond A € 15.32 - 0.05 0.00

Invesco Euro Reserve A € 322.63 - 0.00 0.00

Invesco European Bond A € 5.88 - 0.01 0.00

Invesco European Growth Equity A € 17.21 - 0.01 0.00

Invesco Global Absolute Return Fund A Class € 10.79 - -0.01 0.00

Invesco Global Bond A Inc $ 5.72 - 0.00 1.65

Invesco Global Equity Income Fund A $ 46.87 - -0.15 0.00

Invesco Global Inc Real Estate Sec A dist $ 9.10 - 0.03 3.13

Invesco Global Inv Grd Corp Bond A Dist $ 11.39 - 0.03 2.96

Invesco Global Leisure A $ 22.40 - -0.05 0.00

Invesco Global Smaller Comp Eq Fd A $ 39.14 - 0.06 0.00

Invesco Global Structured Equity A $ 32.46 - -0.03 0.99

Invesco Global Total Ret.(EUR) Bond Fund A € 12.05 - 0.02 0.00

Invesco Gold & Precious Metals A $ 8.96 - -0.06 0.00

Invesco Greater China Equity A $ 35.96 - -0.09 0.00

Invesco India Equity A $ 38.01 - -0.31 0.00

Invesco Japanese Equity Adv Fd A ¥ 2055.00 - -4.00 0.00

Invesco Japanese Value Eq Fd A ¥ 680.00 - -3.00 0.00

Invesco Latin American Equity A $ 10.77 - 0.11 0.00

Invesco Nippon Small/Mid Cap Equity A ¥ 512.00 - 2.00 0.00

Invesco Pan European Equity A EUR Cap NAV € 13.02 - 0.04 0.00

Invesco Pan European High Income Fd A € 11.96 - 0.02 4.61

Invesco Pan European Small Cap Equity A € 13.52 - 0.00 0.00

Invesco Pan European Structured Equity A € 11.06 - 0.01 0.00

Invesco UK Investment Grade Bond A £ 0.94 - 0.00 3.10

Invesco US Structured Equity A $ 15.50 - -0.11 0.00

Invesco US Value Eq Fd A $ 23.37 - -0.14 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 £ 2.55 - 0.00 4.79

Invesco Asian Equity A $ 5.83 - 0.00 0.36

Invesco ASEAN Equity A $ 103.62 - -0.04 0.33

Invesco Bond A $ 29.47 - 0.08 1.92

Invesco Continental Eurp Small Cap Eqty A $ 137.66 - 0.35 0.44

Invesco Emerging Markets Equity A $ 37.65 - 0.12 0.00

Invesco Emerging Markets Bond A $ 23.31 - 0.04 4.63

Invesco Continental European Equity A € 5.42 - 0.01 1.18

Invesco Gilt A £ 14.09 - 0.01 2.57

Invesco Global Small Cap Equity A NAV $ 93.42 - 0.18 0.00

Invesco Global High Income A NAV $ 13.75 - 0.02 5.41

Invesco Gbl R/Est Secs A GBP F F £ 6.52 - 0.03 1.05

Invesco Global Health Care A $ 80.24 - -0.49 0.00

Invesco Global Select Equity A $ 11.09 - -0.01 0.00

Invesco Jap Eqty Core A $ 1.35 - 0.00 0.30

Invesco Japanese Equity A $ 14.91 - 0.01 0.00

Invesco Korean Equity A $ 23.19 - 0.04 0.00

Invesco PRC Equity A $ 45.80 - 0.08 0.00

Invesco Pacific Equity A $ 39.37 - 0.21 0.37

Invesco Global Technology A $ 11.21 - -0.03 0.00

Invesco UK Eqty A £ 6.08 - 0.03 1.74

Invest ADClient services: +971 2 692 6101 clientservices@InvestAD.com

Other International Funds

Invest AD - Iraq Opportunity Fund $ 93.98 - 0.45 0.00

Invest AD - Emerging Africa Fund $ 1059.86 - 6.61 -

Invest AD - GCC Focus Fund $ 1022.60 - 2.69 -

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 * £ 13.05 - 0.00 -

Short Dated Bd I Acc GBP * £ 13.95 - 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 $ 19.74 - 0.08 0.41

American Equity A Acc USD $ 15.89 - -0.10 0.00

American Equity A Inc USD $ 74.31 - -0.46 0.00

Asia Pacific Eq. A Acc USD $ 26.31 - -0.04 0.76

Asia Pacific Eq. A Inc USD $ 26.04 - -0.04 0.81

Asian Equity A Acc USD $ 20.12 - -0.02 0.41

Asian Equity A Inc USD $ 29.51 - -0.03 0.37

Continental European Equity A Inc USD $ 370.24 - 1.76 0.79

Continental European Equity A Acc USD $ 15.48 - 0.07 0.77

EAFE A Inc USD $ 15.83 - 0.04 0.38

Emrg Mkts Blended Debt A Acc USD $ 22.96 - 0.04 4.82

Emrg Mkts Blended Debt A Inc USD $ 20.79 - 0.03 4.83

Emrg Mkts Corp Debt A Acc USD $ 22.59 - 0.04 2.89

Emrg Mkts Corp Debt A Inc USD $ 20.53 - 0.04 -

Emrg Mkts Curr A Acc USD $ 20.20 - 0.01 2.87

Emrg Mkts Curr Alpha A Acc USD $ 19.16 - 0.03 0.00

Emrg Mkts Equity A Acc USD $ 18.08 - -0.02 0.00

Emrg Mkts Hard Curr Debt A Inc USD $ 23.27 - 0.01 2.66

Emrg Mkts Local Curr Debt A Acc USD $ 29.01 - 0.05 6.39

Emrg Mkts Local Curr Debt A Inc USD $ 20.66 - 0.03 6.39

Emrg Mkts Local Curr Dyn Debt A Acc USD $ 22.01 - 0.04 5.69

Emrg Mkts Local Curr Dyn Debt A Inc USD $ 19.81 - 0.04 5.71

Emerging Markets Multi-Asset A Acc USD $ 22.14 - 0.02 -

Emerging Markets Multi-Asset A Inc USD $ 21.97 - 0.02 -

Enhanced Gbl Energy A Acc USD $ 16.42 - -0.04 0.00

Enhanced Nat Resources A Acc USD $ 19.34 - -0.11 0.00

Euro Money A Acc EUR € 69.01 - 0.00 0.00

Euro Money A Inc EUR € 26.10 - 0.00 0.00

Global Bond A Acc USD $ 100.87 - -0.02 1.07

Global Bond A Inc USD $ 45.97 - 0.00 1.08

Global Contrarian Equity A Acc USD $ 22.33 22.33 -0.02 0.00

Global Dynamic A Acc USD $ 103.58 - -0.13 0.00

Global Dynamic A Inc USD $ 102.80 - -0.13 0.00

Global Energy A Acc USD $ 17.39 - -0.04 0.27

Global Energy A Inc USD $ 305.41 - -0.74 0.18

Global Energy Long Short A Acc USD $ 16.87 - -0.03 0.00

Global Equity A Acc USD $ 235.56 - -0.68 0.00

Global Equity A Inc USD $ 233.58 - -0.68 0.00

Global Franchise A Acc USD $ 32.46 - -0.06 0.67

Global Franchise A Inc USD $ 32.10 - -0.06 0.69

Global Gold A Acc USD $ 20.95 - -0.22 0.00

Global Gold A Inc USD $ 75.50 - -0.81 0.00

Global Natural Resources A Acc USD $ 10.36 - -0.05 0.00

Global Natural Resources A Inc USD $ 10.36 - -0.05 0.00

Global Opp Equity A Inc USD $ 24.78 - -0.06 0.20

Global Strat Equity A Acc USD $ 16.58 - -0.05 0.00

Global Strat Equity A Inc USD $ 90.16 - -0.31 0.00

Global Strategic Inc A Acc USD $ 26.45 - 0.02 3.87

Global Strategic Inc A Inc USD $ 21.16 - 0.01 3.88

Fund Bid Offer D+/- Yield

Global Strat Managed A Acc USD $ 98.62 - -0.03 0.15

Global Strat Managed A Inc USD $ 43.18 - -0.01 0.16

High Income Bond A Acc GBP Hdg £ 70.46 - 0.07 6.62

High Income Bond A Inc GBP Hdg £ 17.80 - 0.02 6.62

Inv Grade Corp Bond A Acc USD $ 21.12 - 0.03 4.01

Inv Grade Corp Bond A Inc USD $ 30.02 - 0.04 4.01

Latin Amer.Corp.Debt A Acc USD $ 25.42 - 0.02 5.60

Latin Amer.Corp.Debt A Inc USD $ 20.26 - 0.02 5.63

Latin Amer.Eq. A Acc USD $ 21.45 - 0.14 0.72

Latin Amer.Sm Cos A Acc USD $ 25.74 - 0.14 -

Managed Currency A Acc USD $ 130.65 - -0.01 0.00

Managed Currency A Inc USD $ 35.25 - 0.00 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 £ 11.13 - 0.03 1.35

UK Equity A Inc GBP £ 62.08 - 0.15 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 $ 21.28 - 0.03 -

Global Diversified Growth A USD $ 29.40 - 0.04 -

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 51.04 - 0.05 -

Diversified Real Ret Inc 50.96 - 0.05 -

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 $ 50.96 - 0.47 -

JF US Smaller Co.A (dist)-USD (1) $ 17.13 - 0.12 -

JF US Value A (dist)-USD (1) $ 14.57 - 0.13 -

JPM Am Eq A (acc)-USD (1) F $ 12.52 - 0.12 -

JPM Am Eq A (dist)-USD (1) $ 94.97 - 0.86 -

JPM Am Eq A (acc)-EUR Hdg (1) F € 7.66 - 0.07 -

JPM Am L Cap A (acc)-EUR (1) F € 11.62 - 0.02 -

JPM Am L Cap A (acc)-USD (1) F $ 13.08 - 0.13 -

JPM Am L Cap A (dist)-USD (1) F $ 11.62 - 0.12 -

JPM US Smaller Co.A (acc)-USD (1) F $ 11.50 - 0.08 -

JPM US Smaller Co.A (dist)-USD (1) $ 116.89 - 0.84 -

JPM H US STEEP A (acc)-EUR (1) F € 9.66 - -0.02 -

JPM H US STEEP A (dist)-GBP (1) F £ 12.16 - 0.03 -

JPM US Value A (acc)-EUR Hdg (1) F € 8.01 - 0.07 -

JPM H US STEEP A (inc)-EUR (1) F € 9.51 - -0.02 -

JPM H US STEEP A (acc)-USD (1) F $ 12.83 - 0.08 -

JPM US Dyn A (acc)-EUR (1) € 6.96 - 0.01 -

JPM US Dyn A (acc)-USD (1) F $ 11.08 - 0.11 -

JPM US Dyn A (dist)-USD (1) $ 15.27 - 0.15 -

JPM US Growth A (acc)-EUR Hdg (1) F € 7.61 - 0.06 -

JPM US Growth A (acc)-USD (1) F $ 13.24 - 0.11 -

JPM US Growth A (dist)-GBP (1) F £ 6.25 - 0.03 -

JPM US Growth A (dist)-USD (1) F $ 7.09 - 0.06 -

JPM US Select 130/30 A (acc)-EUR Hdg (1) F € 7.59 - 0.08 -

JPM US Select 130/30 A (acc)-USD (1) F $ 10.83 - 0.12 -

JPM US Select 130/30 A (dist)-GBP (1) F £ 7.05 - 0.06 -

JPM US Select 130/30 A (dist)-USD (1) F $ 11.02 - 0.13 -

JPM US Sm Cap Grth A (acc)-EUR (1) F € 71.53 - -0.05 -

JPM US Sm Cap Grth A (dist)-GBP (1) F £ 9.62 - 0.04 -

JPM US Sm Cap Grth A (acc)-USD (1) F $ 14.95 - 0.11 -

JPM US Sm Cap Grth A (dist)-USD (1) $ 102.94 - 0.75 -

JPM US Value A (dist)-GBP (1) F £ 14.66 - 0.08 -

JPM US Value A (acc)-USD (1) F $ 13.36 - 0.11 -

JPM US Value A (dist)-USD (1) F $ 16.67 - 0.14 -

JPM US Dyn 130/30 A (acc)-EUR Hdg (1) € 7.34 - 0.06 -

JPM US DYN 130/30 A (acc)-USD (1) F $ 10.47 - 0.08 -

JPM US DYN 130/30 A (dist)-GBP (1) F £ 8.12 - 0.04 -

JPM US DYN 130/30 A (dist)-USD (1) F $ 129.84 - 1.02 -

Equity Asia

JF ASEAN Equity A (acc)-SGD (1) F S$ 17.17 - 0.03 -

JF Asia Al+ A (acc)-USD (1) $ 21.45 - 0.09 -

JF Asia P ExJapEq A (dist)-GBP (1) F £ 17.65 - 0.00 -

JF Asia P ExJapEq A (acc)-USD (1) F $ 18.78 - 0.07 -

JF Asia P ExJapEq A (dist)-USD (1) $ 47.41 - 0.16 -

JF Asia P ExJapEq A (acc)-SGD (1) F S$ 12.92 - 0.05 -

JF China A (acc)-USD (1) F $ 26.56 - 0.15 -

JF China A (acc)-SGD (1) F S$ 10.82 - 0.07 -

JF China A (dist)-HKD (1) F HK$ 9.97 - 0.06 -

JF China A (dist)-USD (1) $ 42.89 - 0.25 -

JF Greater China A (acc)-SGD (1) F S$ 13.73 - 0.07 -

JF Greater China A (acc)-USD (1) F $ 22.35 - 0.10 -

JF Greater China A (dist)-HKD (1) FHK$ 11.75 - 0.05 -

JF Greater China A (dist)-USD (1) F $ 27.64 - 0.13 -

JF Hong Kong A (acc)-USD (1) F $ 18.20 - 0.12 -

JF Hong Kong A (dist)-HKD (1) F HK$ 10.73 - 0.07 -

JF Hong Kong A (dist)-USD (1) F $ 47.20 - 0.31 -

JF India A (acc)-SGD (1) F S$ 13.18 - 0.19 -

JF India A (acc)-USD (1) F $ 24.45 - 0.34 -

JF India A (dist)-GBP £ 72.29 - 0.77 -

JF India A (dist)-USD (1) $ 71.92 - 0.99 -

JF Korea Eq A (acc)-USD (1) F $ 10.41 - 0.06 -

JF Korea Eq A (acc)-EUR (1) F € 7.89 - 0.03 -

JF Korea Eq A (dist)-USD (1) F $ 10.83 - 0.05 -

JF Singapore A (acc)-SGD (1) F S$ 16.79 - 0.02 -

JF Japan Eq A (acc)-EUR (1) F € 4.75 - 0.05 -

JF Japan Eq A (dist)-GBP (1) F £ 5.93 - 0.09 -

JF Japan Eq A (acc)-JPY (1) ¥ 477.00 - 12.00 -

JF Japan Eq A (acc)-USD (1) F $ 7.54 - 0.14 -

JF Japan Eq A (dist)-USD (1) $ 18.99 - 0.35 -

JF Japan Sm Cap A (acc)-USD (1) F $ 6.78 - 0.03 -

JF Japan Sm Cap A (dist)-USD (1) $ 6.45 - 0.02 -

JF Pacific Eq A (acc)-EUR (1) F € 9.23 - 0.02 -

JF Pacific Eq A (dist)-GBP (1) F £ 12.65 - 0.09 -

JF Pacific Eq A (acc)-USD (1) $ 13.76 - 0.14 -

JF Pacific Eq A (dist)-USD (1) $ 64.21 - 0.63 -

JF Singapore A (acc)-USD (1) F $ 28.05 - 0.02 -

JF Singapore A (dist)-USD (1) F $ 35.66 - 0.03 -

JF Taiwan A (acc)-EUR (1) F € 15.06 - -0.14 -

JF Taiwan A (acc)-USD (1) F $ 15.85 - -0.02 -

JF Taiwan A (dist) HKD (1) F HK$ 11.96 - -0.02 -

JF Taiwan A (dist)-USD (1) F $ 13.47 - -0.02 -

JPM Japan 50 Eq A (acc)-EUR (hdg) (2) F € 79.54 - 2.15 -

Equity Emerging Markets

JPM Brazil Equity A (acc)-USD (1) F $ 9.35 - 0.18 -

JPM Brazil Equity A (acc)-SGD (1) F S$ 10.92 - 0.21 -

JPM Brazil Equity A (acc)-EUR (1) F € 60.89 - 0.71 -

JPM Brazil Equity A (dist)-USD (1) F $ 8.91 - 0.18 -

JF Eastern Europe Eq A (dist)-EUR (1) F € 29.88 - 0.08 -

JF Latin Am Eq A (dist)-USD (1) F $ 42.46 - 0.59 -

JPM Eastern Europe Eq A (acc)-EUR (1) F € 18.61 - 0.05 -

JPM Eastern Europe Eq A (acc)-USD (1) F $ 124.79 - 1.31 -

JPM Eastern Europe Eq A (dist)-EUR (1) € 44.67 - 0.12 -

JPM Em Eur MEA Eq A (acc)-EUR (1) F € 17.04 - 0.04 -

JPM Em Eur MEA Eq A (acc)-USD (1) F $ 21.08 - 0.21 -

JPM Em Eur MEA Eq A (dist)-USD (1) F $ 58.63 - 0.57 -

JPM Em Eur MEA Afr Eq A (acc)-SGD (1) F S$ 13.47 - 0.13 -

JPM Em MEA Eq A (acc)-SGD (1) F * S$ 12.76 - 0.03 -

JPM Em Mkt Alpha Pl A (dist)-GBP (1) F £ 7.22 - 0.00 -

JPM Em Mkt Alpha Pl A (acc)-USD (1) F $ 15.91 - 0.06 -

JPM Em Mkt Alpha Pl A (dist)-USD (1) F $ 15.40 - 0.06 -

JPM Em Mkt Eq A (dist)-GBP (1) F £ 32.64 - 0.14 -

JPM Em Mkt Eq A (acc)-EUR (1) F € 13.65 - 0.00 -

JPM Em Mkt Eq A (acc)-USD (1) F $ 22.74 - 0.17 -

JPM Em Mkt Eq A (dist)-USD (1) $ 31.71 - 0.23 -

JPM Em Mkt Infra Eq A (acc)-EUR (1) F € 14.92 - 0.01 -

JPM Em Mkt Infra Eq A (acc)-USD (1) F $ 7.91 - 0.07 -

JPM Em Mkts Ccy Alpha A (acc)-EUR (1) F € 9.92 - 0.02 -

JPM Em Mkts Lcl Cur Dbt A (dist)-EUR(1) F € 102.93 - -0.49 -

JPM Em Mkts Loc Ccy Debt A (div)-EUR € 103.51 - -0.49 -

JPM Em Mkts Loc Ccy Debt A (dist)-GBP (1) F £ 83.53 - 0.01 -

JPM Em Mkts Loc Ccy Debt A (mth)-USD (1) F $ 15.66 - 0.05 -

JPM Em Mkts Eq A (acc)-SGD (1) F S$ 13.84 - 0.11 -

JPM Em Mkt Sm Cap A (acc)-EUR (1) F € 8.02 - -0.01 -

JPM Em Mkt Sm Cap A (dist)-GBP (1) F £ 5.96 - 0.02 -

JPM Em Mkt Sm Cap A (acc)-USD (1) F $ 10.63 - 0.07 -

JPM Latin Am Eq A (acc)-USD (1) F $ 31.78 - 0.44 -

JPM Latin Am Eq A (dist)-USD (1) $ 58.69 - 0.81 -

JPM Latin Am Eq A (acc)-SGD (1) F S$ 13.21 - 0.19 -

Fund Bid Offer D+/- Yield

JPM Russia A (acc)-USD (1) F $ 12.41 - 0.13 -

JPM Russia A (dist)-USD (1) F $ 12.05 - 0.12 -

JPM Turkey Eq A (dist)-EUR (1) € 21.43 - -0.17 -

Equity Europe

JF Euroland Eq A (dist)-USD (1) F $ 7.59 - 0.10 -

JF Europe Dynamic A (dist)-EUR (1) € 14.91 - 0.16 -

JF Europe Eq A (dist)-USD (1) F $ 36.29 - 0.51 -

JF Europe Sm Cap A (dist)-EUR (1) F € 10.97 - 0.08 -

JF Germany Eq A (dist)-EUR (1) F € 21.53 - 0.16 -

JPM Euroland Eq A (acc)-EUR (1) F € 10.30 - 0.05 -

JPM Euroland Eq A (dist)-EUR (1) € 31.90 - 0.16 -

JPM Euroland Eq A (inc)-EUR (1) F € 5.66 - 0.02 -

JPM Europe Dyn A (dist)-EUR (1) F € 13.04 - 0.14 -

JPM Europe Dyn A (acc)-EUR (1) F € 14.39 - 0.15 -

JPM Europe Dyn A (dist)-GBP (1) F £ 16.16 - 0.25 -

JPM Europe Dyn Mega Cap A (acc)-EUR (1) € 10.28 - 0.11 -

JPM Europe Dyn Mega Cap A (acc)-USD (1) F $ 10.47 - 0.20 -

JPM Europe Dyn Mega Cap A (inc)-EUR (1) F € 8.05 - 0.09 -

JPM Europe Dyn Mega Cap A (dist)-EUR (1) F € 7.77 - 0.09 -

JPM Europe Dyn Sm Cap A (dist)-EUR (1) F € 11.63 - 0.06 -

JPM Europe Dyn Sm Cap A (acc)-EUR (1) € 20.05 - 0.10 -

JPM Europe Eq A (acc)-EUR (1) F € 10.97 - 0.06 -

JPM Europe Eq A (dist)-EUR (1) € 33.45 - 0.20 -

JPM Europe Eq A (cap)-USD (1) F $ 13.96 - 0.19 -

JPM Europe Focus A (acc)-EUR (1) F € 9.96 - 0.09 -

JPM Europe Focus A (acc)-USD (1) F $ 12.21 - 0.20 -

JPM Europe Focus A (dist)-EUR (1) F € 8.34 - 0.07 -

JPM Europe Micro Cap A (acc)-EUR (1) F € 11.30 - 0.06 -

JPM Europe Micro Cap A (dist)-EUR (1) F € 11.04 - 0.06 -

JPM Europe 130/30 A (acc)-EUR (1) F € 9.56 - 0.01 -

JPM Europe 130/30 A (acc)-USD (1) F $ 13.87 - 0.13 -

JPM Europe Sel 130/30 A (acc)-EUR (1) F € 8.08 - 0.05 -

JPM Europe Sel 130/30 A (acc)-USD (1) F $ 12.05 - 0.17 -

JPM Europe Sel 130/30 A (dist)-EUR (1) F € 10.74 - 0.06 -

JPM Europe Sel 130/30 A (dist)-GBP (1) F £ 5.97 - 0.07 -

JPM Europe Sm Cap A (acc)-EUR (1) F € 13.50 - 0.10 -

JPM Europe Sm Cap A (dist)-EUR (1) € 36.94 - 0.27 -

JPM Europe Sm Cap A (dist)-GBP (1) F £ 14.94 - 0.18 -

JPM Europe Strat Grth A (acc)-EUR (1) F € 13.59 - 0.08 -

JPM Europe Strat Grth A (dist)-EUR (1) F € 8.44 - 0.05 -

JPM Europe Strat Grth A (dist)-GBP (1) F £ 12.57 - 0.13 -

JPM Europe Strat Val A (dist)-EUR (1) F € 11.13 - 0.06 -

JPM Europe Strat Val A (acc)-EUR (1) F € 10.06 - 0.06 -

JPM Europe Strat Val A (dist)-GBP (1) F £ 13.87 - 0.15 -

JPM Europe 130/30 A (dist)-EUR (1) F € 8.74 - 0.01 -

JPM Europe 130/30 A (dist)-GBP (1) F £ 7.13 - 0.04 -

JPM Germany Eq A (dist)-EUR (1) F € 8.67 - 0.07 -

JPM Germany Eq A (acc)-EUR (1) F € 16.99 - 0.13 -

JPM Global Dyn A (acc)-SGD (1) F S$ 14.39 - 0.17 -

JPM Global Div A (div) - USD (1) $ 111.03 - 0.99 -

JPM High Eur STEEP A (dist)-GBP (1) F £ 10.02 - 0.05 -

JPM High Eur STEEP A (acc)-EUR (1) F € 11.87 - 0.01 -

JPM High Eur STEEP A (acc)-USD (1) F $ 15.82 - 0.14 -

JPM High Eur STEEP A (inc)-EUR (1) F € 11.28 - 0.00 -

JPM Turkey Eq A (acc)-EUR (1) € 15.41 - -0.12 -

JPM UK Eq A (acc)-GBP (1) F £ 12.19 - 0.11 -

JPM UK Eq A (dist)-GBP (1) £ 7.65 - 0.07 -

Equity Global

JF Gbl Dyn A (dist)-USD (1) F $ 13.79 - 0.15 -

JF Gbl Uncstr Eq (USD) A (dist)-USD (1) $ 38.81 - 0.37 -

JPM Gbl Div A (acc)-EUR (1) F € 84.10 - 0.08 -

JPM Gbl Div A (div)-EUR Hdg (1) € 78.38 - 0.58 -

JPM Gbl Dyn A (dist)-GBP (1) F £ 13.05 - 0.10 -

JPM Gbl Dyn A (acc)-USD (1) F $ 12.75 - 0.14 -

JPM Gbl Dyn A (dist)-USD (1) F $ 14.99 - 0.16 -

JPM Gbl Dyn A (acc)-EUR (1) F € 7.18 - 0.02 -

JPM Gbl Dyn A (acc)-CHF (hdg) (1) FSFr 121.55 - 1.11 -

JPM Gbl Dyn A (acc)-EUR Hdg (1) F € 5.51 - 0.05 -

JPM Gbl Dyn A (acc)-SGD (Hdg) (1) F S$ 11.98 - 0.12 -

JPM Gbl Dyn A (inc)-EUR (1) F € 7.30 - 0.02 -

JPM Gbl Focus A (acc)-EUR (1) F € 16.08 - 0.04 -

JPM Gbl Focus A (acc)-CHF (hdg) (1) FSFr 141.55 - 1.19 -

JPM Gbl Focus A (acc)-EUR Hgd (1) F € 8.72 - 0.07 -

JPM Gbl Focus A (dist)-EUR (1) € 21.54 - 0.05 -

JPM Gbl Real Estate Sec (USD) A (acc)-EUR Hdg (1) F € 6.30 - 0.04 -

JPM Gbl Real Estate Sec (USD) A (acc)-USD (1) F $ 9.63 - 0.06 -

JPM Gbl Real Estate Sec (USD) A (inc)-EUR Hdg (1) F € 5.74 - 0.04 -

JPM Gbl Sel Eq A (acc)-USD (2) F $ 162.71 - 1.36 -

JPM Gbl Sel Eq A (dist)-USD (2) F $ 110.41 - 0.92 -

JPM Gbl Soc Resp A (acc)-USD (1) F $ 10.26 - 0.10 -

JPM Gbl Soc Resp A (dist)-USD (1) F $ 6.11 - 0.06 -

JPM Gbl Uncstr Eq (USD) A (acc)-EUR Hdg (1) € 6.34 - 0.04 -

JPM Gbl Uncstr Eq (USD) A (acc)-EUR (1) € 77.42 - 0.13 -

JPM Gbl Uncstr Eq (USD) A (acc)-USD (1) $ 11.60 - 0.11 -

JPM Gbl Uncstr Eq (USD) A (dist)-EUR Hdg (1) € 5.99 - 0.04 -

JPM Gbl Uncstr Eq (USD) A (dist)-USD (1) $ 22.44 - 0.22 -

Equity Sector

JF Europe Tech A (dist)-EUR (1) F € 5.53 - 0.07 -

JF Pacific Tech A (acc)-EUR (1) F € 12.86 - 0.02 -

JF Pacific Tech A (acc)-USD (1) F $ 16.15 - 0.15 -

JF Pacific Tech A (dist)-USD (1) F $ 10.47 - 0.10 -

JF Pacific Tech A (dist)-GBP (1) F £ 12.07 - 0.08 -

JF US Tech A (dist)-USD (1) F $ 2.07 - 0.02 -

JPM Europe Tech A (acc)-EUR (1) F € 15.96 - 0.18 -

JPM Europe Tech A (dist)-EUR (1) F € 10.27 - 0.12 -

JPM Europe Tech A (dist)-GBP (1) F £ 7.97 - 0.12 -

JPM Gbl Cons Trends A (acc)-EUR (1) F € 13.29 - 0.03 -

JPM Gbl Cons Trends A (acc)-USD (1) F $ 17.32 - 0.18 -

JPM Gbl Nat Resources Fd (1) F S$ 16.38 - -0.01 -

JPM Gbl Natural Res A (dist)-EUR (1) F € 14.67 - -0.14 -

JPM Gbl Natural Res A (acc)-EUR (1) F € 17.03 - -0.16 -

JPM Gbl Natural Res A (acc)-USD (1) F $ 13.86 - -0.02 -

JPM H US STEEP A (acc)-EUR Hdg (1) F € 13.76 - 0.08 -

JPM US Tech A (acc)-EUR (1) F € 101.00 - 0.47 -

JPM US Tech A (dist)-GBP (1) F £ 1.78 - 0.02 -

JPM US Tech A (acc)-SGD (1) S$ 12.98 - 0.17 -

JPM US Tech A (acc)-USD (1) F $ 14.18 - 0.17 -

JPM US Tech A (dist)-USD (1) F $ 7.17 - 0.09 -

Equity Africa

JPM Africa Eq A (acc)-EUR (1) F € 18.17 - -0.01 -

JPM Africa Eq A (acc)-USD (1) F $ 11.30 - 0.09 -

JPM Africa Eq A (dist)-GBP (1) F £ 7.54 - 0.04 -

JPM Africa Eq A (inc)-EUR (1) F € 72.19 - -0.02 -

Bonds Broad Market

JPM Agg Bd A (acc)-USD (1) F $ 12.06 - -0.01 -

JPM Em Mkt Corp Bd A (acc)-EUR Hdg (1) F € 102.10 - -0.15 -

JPM Em Mkt Corp Bd A (acc)-USD (1) F $ 130.54 - -0.19 -

JPM Em Mkt Debt A (acc)-USD (1) F $ 18.14 - 0.02 -

JPM Euro Agg Bd A (acc)-EUR (1) F € 11.78 - 0.00 -

JPM Gbl Agg Bd A (acc)-USD (1) F $ 12.87 - 0.01 -

JPM Gbl Agg Bd A (dist)-USD (1) $ 13.59 - 0.01 -

JPM Gbl Conv (EUR) A (acc)-CHF Hdg (1) FSFr 21.73 - 0.09 -

JPM Gbl Conv (EUR) A (dist)-GBP Hdg (1) F £ 11.50 - 0.05 -

JPM Gbl Corp Bond A (div)-EUR Hdg (1) € 77.65 - 0.01 -

Bonds Extended Market

JPM EU Gov Bd A (acc)-EUR (1) F € 12.58 - 0.02 -

JPM Gbl Conv (EUR) A (acc)-EUR (1) F € 12.25 - 0.05 -

JPM Gbl Conv (EUR) A (dist)-EUR (1) F € 10.17 - 0.04 -

JPM US Aggr Bd Aacc-EUR (hdg) (1) € 79.25 - -0.06 -

(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 € 12.07 - 0.04 1.50

Europe Convertible Bd B (Cap) € 13.38 - 0.04 0.00

Global Convertible A (Dis) F $ 17.68 - 0.02 0.74

Global Convertible B (Cap) F $ 20.67 - 0.03 0.00

Global Convertible A Hdg GBP(Dis) F £ 11.35 - 0.01 0.71

Global Convertible B Hdg GBP (Cap) F £ 13.17 - 0.01 0.00

Global Convertible Hdg A (Cap) F $ 16.83 - 0.02 0.78

Global Convertible B Hdg (Dis) F $ 19.70 - 0.01 0.00

Global Convertible A Hdg EUR(Dis) F € 13.93 - 0.01 0.72

Global Convertible B Hdg EUR (Cap) F € 14.87 - 0.01 0.00

Global Convertible A Hdg CHF (Dis) FSFr 20.23 - 0.01 0.60

Global Convertible B Hdg CHF (Cap) FSFr 22.03 - 0.01 0.00

Jubilee Financial Products LLPOther International Funds

Jubilee Emerging Europe Momentum Fund € 99.81 - - -

Fund Bid Offer D+/- Yield

Swiss & Global Asset Management (LUX)funds@swissglobal-am.com, www.jbfundnet.comRegulated

JB BF ABS-EUR/A € 75.08 - 0.04 2.94

JB BF Absolute Ret Def-EUR/A € 104.43 - -0.01 2.41

JB BF Absolute Ret Def-GBP/A £ 104.37 - 0.00 2.31

JB BF Absolute Ret EM-CHF SFr 102.98 - 0.03 0.00

JB BF Absolute Ret EM-EUR/A € 103.93 - 0.04 2.81

JB BF Absolute Ret EM-USD/A $ 102.21 - 0.04 2.86

JB BF Absolute Ret Pl-EUR/A € 104.43 - -0.02 2.99

JB BF Absolute Ret Pl-GBP/A £ 110.64 - -0.03 2.78

JB BF Absolute Ret Pl-USD/A $ 110.83 - -0.02 2.78

JB BF Absolute Return GBP/A £ 107.67 - -0.02 2.25

JB BF Absolute Return-GBP/B £ 125.39 - -0.02 0.00

JB BF Absolute Return-EUR/A € 102.14 - -0.02 2.42

JB BF Absolute Return-USD/A $ 104.51 - -0.02 2.31

JB BF Cred Opportunities-EUR/B € 158.36 - 0.22 0.00

JB BF Credit Opportunities-USD $ 111.32 - 0.16 0.00

JB BF Dollar-USD/A $ 112.51 - 0.11 3.40

JB BF Dollar Med Term-USD/A $ 120.41 - 0.02 2.24

JB BF EM Infl Linked-CHF/A SFr 100.22 - 0.25 7.31

JB BF EM Infl Linked-EUR/A € 101.26 - 0.26 7.33

JB BF EM Infl Linked-GBP/A £ 100.03 - 0.26 7.32

JB BF EM Infl Linked-USD/A $ 101.89 - 0.27 7.30

JB BF Emerging-CHF/A SFr 109.87 - 0.12 -

JB BF Emerging-EUR/A € 138.39 - 0.19 5.33

JB BF Emerging-USD/A $ 161.04 - 0.20 4.24

JB BF Euro Government-EUR/A € 107.62 - 0.20 3.50

JB BF Euro-EUR/A € 122.57 - 0.12 3.61

JB BF Global Convert-EUR/A € 66.63 - 0.11 1.14

JB BF Global High Yield-EUR/A € 105.91 - 0.22 6.76

JB BF Global High Yield GBP/A £ 100.35 - 0.20 6.79

JB BF Global High Yield-USD/A $ 116.18 - 0.23 6.12

JB BF Inflation Linked-CHF/B SFr 107.90 - 0.09 0.00

JB BF Local Emerging-CHF/A SFr 103.38 - 0.29 4.25

JB BF Local Emerging-EUR/A € 104.27 - 0.30 4.21

JB BF Local Emerging-GBP/A £ 117.10 - 0.34 3.93

JB BF Local Emerging-USD/A $ 140.68 - 0.41 3.89

JB BF Swiss Franc-CHF/B SFr 189.46 - -0.15 0.00

JB BF Total Return-CHF SFr 105.96 - -0.02 0.00

JB BF Total Return-EUR/A € 45.52 - 0.00 3.21

JB Commodity-EUR/A € 72.54 - 0.01 1.43

JB Commodity-EUR/B € 84.89 - 0.02 0.00

JB Commodity-USD/A $ 82.18 - 0.01 1.86

JB Commodity-USD/B $ 96.61 - 0.02 0.00

JB EF Abs Ret Europe-EUR/A € 110.53 - 0.22 0.09

JB EF Abs Ret Europe-EUR/B € 110.62 - 0.21 0.00

JB EF Asia-USD/A $ 121.44 - -0.37 1.22

JB EF Biotech-USD/A $ 148.14 - -1.75 0.07

JB EF Black Sea-EUR/A € 29.84 - -0.11 3.95

JB EF Black Sea-USD/A $ 29.56 - 0.00 4.07

JB EF Central Europe-EUR/A € 194.31 - -0.38 2.20

JB EF Chindonesia-USD/A $ 94.14 - -0.28 0.16

JB EF Chindonesia-USD/B $ 94.39 - -0.28 0.00

JB EF Energy Transition-EUR/B € 117.79 - 0.02 0.00

JB EF Energy Transition-USD/B $ 123.05 - 0.47 0.00

JB EF Euro Large Cap-EUR € 111.15 - 0.42 0.00

JB EF Euroland Value-EUR/A € 112.52 - 0.39 2.61

JB EF Europe Sel.Fd-EUR/A € 60.14 - 0.45 2.07

JB EF Europe S&Mid Cap-EUR/A € 116.91 - 1.06 1.01

JB EF Europe-EUR/A € 173.56 - 1.07 1.81

JB EF Global-EUR/A € 65.53 - -0.39 2.14

JB EF German Value-EUR/A € 167.27 - 0.51 2.50

JB EF Gl Emerging Mkts-EUR/A € 73.43 - 0.35 1.67

JB EF Health Opport - USD/A $ 127.00 - -1.15 0.12

JB EF Health Opport-USD/B $ 127.21 - -1.15 0.00

JB EF Japan-JPY/A ¥ 8106.00 - -18.00 1.92

JB EF Luxury Brands-EUR/A € 168.82 - 0.14 0.27

JB EF Luxury Brands-USD/A $ 151.49 - 0.65 0.24

JB EF Luxury Brands-GBP/B £ 103.31 - 0.30 0.00

JB EF Special Val. EUR/A € 99.32 - -0.09 1.58

JB EF Swiss S&Mid Cap-CHF/B SFr 393.47 - 1.57 0.00

JB EF US Leading-USD/A $ 287.66 - -2.23 0.24

JB EF US Value-USD/A $ 123.47 - -0.83 0.33

JB Ms Africa Opp.-EUR/B € 92.98 - 0.94 -

JB Ms Global Sel. EUR/B € 100.49 - 0.27 0.00

JB Strategy Balanced-CHF/B SFr 134.34 - 0.08 0.00

JB Strategy Balanced-EUR € 134.18 - 0.10 0.00

JB Strategy Balanced-USD/B $ 117.14 - 0.02 0.00

JB Strategy Inc-CHF/B SFr 113.84 - 0.04 0.00

JB Strategy Inc-EUR/B € 145.66 - 0.05 0.00

JB Strategy Inc-USD/B $ 138.11 - 0.02 0.00

JB Strategy Growth-CHF/B SFr 81.49 - 0.08 0.00

JB Strategy Growth-EUR € 96.48 - 0.12 0.00

Kairos Investment Management Ltd (CYM)Regulated

Kairos Multi Strategy E1 (Est) € 1629.20 - 0.86 0.00

Kairos Multi Strategy E2 (Est) € 1216.33 - 0.53 0.00

Kairos Multi Strategy E3 (Est) € 1179.84 - 0.40 0.00

Kairos Multi Strategy D1 (Est) $ 1742.83 - -1.19 0.00

Kairos Multi Strategy D2 (Est) $ 1280.34 - -0.99 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 £ 1.74 - 0.00 3.70

Ethical Corporate Bond A Inc £ 1.07 - 0.00 3.70

Ethical Equity A Acc £ 1.18 - 0.00 1.62

High Yield Bond A Acc £ 1.06 - 0.00 5.20

High Yield Bond A Inc £ 0.55 - 0.00 5.20

Inflation Linked A Acc £ 1.19 - -0.01 -

Investment Grade Bond A Acc £ 1.38 - 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 £ 1.80 - 0.01 1.64

UK Equity Income A Acc £ 1.55 - 0.00 4.17

UK Equity Income A Inc £ 1.35 - 0.00 4.29

UK Opportunities A Acc £ 1.20 - 0.00 1.12

UK Smaller Companies A Acc £ 1.72 - 0.00 0.36

Kames Capital VCIC (IRL)1 North Wall Quay, Dublin 1, Ireland +35 3162 24493FSA Recognised

Absolute Return Bond B GBP Acc £ 10.34 - -0.02 -

High Yield Global Bond A GBP Inc £ 5.32 - 0.01 5.20

High Yield Global Bond B GBP Inc £ 11.06 - 0.02 5.72

Investment Grade Global Bd A GBP Inc £ 5.41 - 0.01 2.12

Strategic Global Bond A GBP Inc £ 10.67 - -0.01 1.47

Strategic Global Bond B GBP Inc £ 6.05 - -0.01 1.98

Key Asset ManagementOther International Funds

Key Hedge (Est) $ 407.72 - 1.63 0.00

Key Europe Inc € 173.82 - 0.67 0.00

Key Recovery (Est) $ 171.78 - 0.21 0.00

Key Global Inc $ 569.42 - 2.78 0.00

Kleinwort Benson (Channel Islands) Investment Management Limited (JER)Regulated

Kleinwort Benson Global Funds Limited

Bond & Equity £ 4.60 - -0.05 4.34

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 -

Fund Bid Offer D+/- Yield

International Bond B GBP Accumulating Non-Rpt £ 0.99 - -0.01 -

International Equity B GBP Accumulating Non-Rpt £ 1.01 - 0.01 -

Multi Asset Balanced A GBP Income Rpt £ 1.30 - 0.01 0.00

Multi Asset Balanced A GBP Reinvest Rpt £ 1.30 - 0.01 0.00

Multi Asset Balanced B GBP Income Rpt £ 1.26 - 0.01 0.00

Multi Asset Balanced B EUR Accumulating Non-Rpt € 1.00 - 0.01 -

Multi Asset Balanced B GBP Accumulating Non-Rpt £ 1.01 - 0.01 -

Multi Asset Balanced B USD Accumulating Non-Rpt $ 1.00 - 0.01 -

Multi Asset Balanced C GBP Income Ppt £ 1.32 - 0.01 -

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 £ 1.09 - 0.01 0.00

Multi Asset Growth A GBP Income Rpt £ 1.09 - 0.01 0.00

Multi Asset Growth B EUR Accumulating Non-Rpt € 1.00 - 0.01 -

Multi Asset Growth B GBP Accumulating Non-Rpt £ 1.01 - 0.01 -

Multi Asset Growth B GBP Income Rpt £ 1.01 - 0.01 -

Multi Asset Growth B USD Accumulating Non-Rpt $ 1.01 - 0.01 -

Sterling Fixed Income A GBP Income Rpt £ 11.61 - -0.03 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) $ 206.88 - -0.40 0.62

BMF Emerging Markets Eq Pr dis(A) $ 88.56 - -0.02 0.78

BFM European Equity A dis(A) € 121.09 - -0.11 1.79

BFM Intl Large Cap A dis(A) $ 68.00 - 0.12 1.66

BW Global Opp.Fixed Inc A dis (M) $ 122.09 - 0.31 2.12

CBA US Aggressive Growth A dis(A) $ 110.80 - -0.70 0.00

CBA US Appreciation A dis(A) $ 111.54 - -0.88 0.00

CBA US Fundamental Value A dis(A) $ 90.80 - -0.45 0.00

CBA US Large Cap Growth A dis(A) $ 115.99 - -0.69 0.00

LM Batterymarch Gbl Equity Fd $ 105.02 - 0.27 0.26

GC Global Equity A dis(A) $ 92.80 - -0.10 0.20

LM CM Growth A dis(A) $ 85.93 - -0.50 0.00

LM CM Opportunity A dis(A) $ 195.68 - 0.35 0.00

LM CM Value A dis(A) $ 117.85 - -0.63 0.00

LM Permal Gl Absolute A dis(A) $ 101.82 - -0.10 0.00

LMHK China Fund A dis $ 100.28 - -0.25 0.40

PCM US Equity A cap $ 98.64 - -0.24 -

Royce Europ. Smaller Companies A acc € 126.01 - 0.34 0.87

Royce Global Smaller Companies A dis $ 123.48 - 0.18 0.00

Royce Smaller Companies A dis(A) $ 189.99 - 0.74 0.00

Royce US Small Cap Opp A dis(A) $ 315.02 - 0.72 0.00

Fixed Income Funds

BW Global Fixed Inc A dis(S) $ 137.85 - 0.22 1.11

WA Asian Opportunities A dis(D) $ 125.62 - -0.01 2.38

WA Brazil Equity A dis(A) $ 75.20 - 1.29 2.96

WA Div Strategic Income A dis(D) $ 95.05 - 0.08 2.95

WA Emerging Markets Bd A dis(D) $ 128.85 - 0.28 4.17

WA Euro Core Plus Bd A dis(D) € 94.69 - 0.05 1.38

WA Euro High Yield A dis (D) € 101.37 - 0.17 6.87

WA Gl Blue Chip Bd A dis(M) $ 109.29 - 0.11 1.82

WA Gl Core Plus Bd A dis(D) $ 108.92 - 0.13 1.76

WA Gl Credit Abs Ret Fd A dis $ 102.90 - 0.24 0.00

WA Gl Credit Cl.A dis (D) $ 107.79 - 0.15 2.12

WA Global High Yield A dis(D) $ 87.77 - 0.09 6.22

WA Global Inf-Linked A dis(D) $ 108.70 - -0.07 2.69

WA Gl Multi Strategy A dis(D) $ 128.20 - 0.12 3.37

WA Inflation Mgmt A dis(A) $ 120.49 - 0.16 1.43

WA UK£ Core Plus Bond A dis (D) £ 108.94 - -0.20 2.01

WA UK£ Infl-Linked Plus A dis (D) £ 116.43 - -0.60 1.00

WA UK£ Long Duration A dis (D) £ 112.06 - -0.33 2.02

WA US Adjustable Rate A cap $ 100.05 - 0.02 0.00

WA US Core Bond A dis(D) $ 100.54 - 0.14 1.71

WA US Core Plus Bond A dis(D) $ 111.77 - 0.16 1.73

WA US High Yield A dis(D) $ 86.70 - 0.03 6.12

WA US Short Term Govt A dis(D) $ 101.21 - 0.03 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 $ 312.37 - 1.71 0.00

LM Eurold Eq.A Euro Cap € 103.41 - 0.22 0.00

Money Funds

LM Eurold Cash A Euro Cap € 135.96 - 0.00 0.00

Asset Allocation Funds

LM M-Man.Bal A Cap Euro € 129.43 - 0.18 0.00

LM M-Man.Bal A Cap USD $ 123.28 - 0.11 0.00

LM M-Man Cons A Cap Euro € 126.27 - 0.21 0.00

LM M-Man Cons A Cap USD $ 126.83 - 0.08 0.00

LM M-Man Perf A Cap Euro € 131.80 - 0.24 0.00

LM M-Man Perf A Cap USD $ 122.67 - 0.12 0.00

Liongate Capital Management (CYM)www.liongate.comRegulated

Liongate Multi-Strategy Fund

Class A1 (Est) $ 1741.24 - -14.34 -

Class B1 (Est) € 1687.93 - -14.41 0.00

Class C1 (Est) £ 1761.97 - -14.47 -

Class D1 (Est) ¥ 118380.63 - -1084.15 0.00

Class E1 (Est) SFr 1561.91 - -13.64 0.00

Class F1 (Est) SKr 956.29 - -7.04 0.00

Liongate Commodities Fund

Class A (Est) $ 1067.61 - -19.54 -

Class B (Est) € 1031.10 - -19.17 0.00

Class C (Est) £ 995.51 - -18.22 0.00

Lloyd George ManagementOther International Funds

LG Antenna Fd Ltd $ 62.40 - - 0.00

LG Asian Plus Ltd $ 59.12 - 0.88 0.00

LG Asian Smaller Cos $ 108.63 - -0.45 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 £ 12.3900 - 0.0200 2.73

Lloyds TSB Offshore Funds Ltd

Capital Growth £ 1.8490 - -0.0010 1.06

Euro High Income € 1.6630 - 0.0020 4.15

European £ 6.7900 - 0.0140 0.81

High Income £ 0.8826 - 0.0013 5.37

International £ 3.4730 - -0.0030 0.02

North American £ 11.2300 - -0.0400 0.00

Sterling Bond £ 1.4530 - 0.0020 3.80

UK £ 6.3660 - -0.0070 1.86

Lloyds TSB Offshore Gilt Fund Ltd

Lloyds TSB Gilt Fund Quarterly Share £ 1.2780 - 0.0010 2.52

Monthly Share £ 1.2300 - 0.0020 2.52

Lloyds TSB Money Fund Ltd

Australian Dollar A$ 167.6670 - 0.0090 2.01

Euro € 52.9740 - 0.0000 -0.35

New Zealand Dollar NZ$ 201.6880 - 0.0070 1.32

Sterling Class £ 52.4130 - 0.0000 0.10

US Dollar Class $ 60.8090 - -0.0010 -0.16

Lloyds TSB Offshore Multi Strategy Fund Ltd

Conservative Strategy £ 1.0710 - 0.0010 2.89

Growth Strategy £ 1.2840 - 0.0030 1.37

Aggressive Strategy £ 1.3780 - 0.0030 0.38

Global USD Growth Strategy $ 1.1010 - 0.0010 0.00

Dealing Daily

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 10.06 - 0.02 0.00

1798 Europe Eq. L/S EUR C A € 10.15 - 0.02 0.00

1798 Europe Eq. L/S USD C A $ 10.11 - 0.02 0.00

Fund Bid Offer D+/- Yield

1798 Optimum Trend (EUR) P A € 11.70 - 0.00 0.00

1798 Optimum Trend (USD) P A $ 11.27 - 0.00 0.00

All Roads (CHF) PA SFr 16.60 - 0.02 -

All Roads (USD) PA $ 10.40 - 0.01 -

All Roads (GBP) PA £ 10.55 - 0.01 -

All Roads (EUR) PA € 10.56 - 0.01 -

Alpha Japan (EUR) P A F € 6.82 - 0.19 0.00

Alpha Japan (CHF) P A F SFr 8.62 - 0.23 0.00

Alpha Japan (JPY) P A F ¥ 792.00 - 22.00 0.00

Alpha Japan (USD) P A F $ 9.77 - 0.27 0.00

Alternative Beta P A F SFr 115.63 - -0.16 0.00

Alternative Beta P A F € 77.19 - -0.10 0.00

Alternative Beta P A F $ 114.76 - -0.16 0.00

Commodities (CHF) P A SFr 8.40 - 0.01 0.00

Commodities (EUR) P A € 8.46 - 0.00 0.00

Commodities (USD) P A $ 8.57 - 0.01 0.00

Convertible Bd P A € 14.55 - 0.02 0.00

Convertible Bd Asia P A F SFr 13.45 - 0.03 0.00

Convertible Bd Asia P A F € 14.20 - 0.03 0.00

Convertible Bd Asia P A F $ 14.21 - 0.03 0.00

Emerging Consumer (CHF) P A SFr 12.24 - -0.02 0.00

Emerging Consumer (EUR) P A € 12.39 - -0.01 0.00

Emerging Consumer (USD) P A $ 12.29 - 0.03 0.00

Emerging Eq.Risk Par.(EUR) € 8.55 - 0.02 0.00

Emerging Eq. Risk Par.(USD) $ 7.92 - 0.05 0.00

Emerging Loc.Cur.&Bds DH (CHF) P ASFr 9.52 - 0.01 0.00

Emerging Mkt.Bd.Fdt PA $ 23.91 - 0.03 0.00

Emerg.Loc.Cur.Bd.Fdt PA SFr 10.39 - 0.01 0.00

Emerg.Loc.Cur.Bd.Fdt PA € 12.38 - -0.02 0.00

Emerg.Loc.Cur.Bd.Fdt PA $ 11.40 - 0.02 0.00

Euro BBB-BB Fdt PA SFr 14.51 - 0.01 0.00

Euro BBB-BB Fdt PA € 11.31 - 0.01 0.00

Euro BBB-BB Fdt PA £ 9.91 - 0.00 0.00

Euro BBB-BB Fdt PA $ 16.05 - 0.01 0.00

Euro Credit Bd PA F € 11.88 - 0.00 0.00

Euro Government Fdt P A € 11.23 - 0.00 0.00

Euro Inflation-Lk Fdt PA € 11.66 - 0.01 0.00

Euro Resp.Corp. Fdt PA € 17.05 - 0.00 0.00

Europe High Conviction PA € 7.86 - 0.05 0.00

Eurozone Small&Mid Caps F € 36.68 - 0.30 0.00

Gbl.BBB-BB Fdmt PA € 9.99 - -0.01 -

Gbl.Gov.Fdt SH (EUR) P A € 9.85 - 0.00 -

Gbl.Gvt.Fdmt PA € 9.82 - -0.02 -

Gbl.5B Fdmt (CHF) P A SFr 9.88 - 0.01 -

Gbl.5B Fdmt SH (USD) P A $ 10.09 - 0.01 -

Generation Global (CHF) P A F SFr 8.84 - -0.02 0.00

Generation Global (EUR) P A F € 12.07 - -0.05 0.00

Generation Global (USD) P A F $ 10.89 - -0.01 0.00

Global Energy (USD) P A F $ 9.70 - -0.04 0.00

Golden Age (CHF) P A F SFr 14.91 - -0.02 0.00

Golden Age (EUR) P A € 10.09 - -0.01 0.00

Golden Age (USD) P A F $ 13.98 - -0.02 0.00

Government Bd (USD) P A $ 20.13 - 0.01 0.00

Invst.Gde A-BBB (CHF) P A SFr 12.92 - 0.00 0.00

Japan Small & Mid Caps P A ¥ 1784.00 - 43.00 0.00

Money Market (EUR) P A € 112.33 - 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 $ 9.97 - -0.03 0.00

Sands US Growth (USD) PA $ 11.54 - -0.11 -

Selective Gbl P A € 157.67 - -0.82 0.00

Tactical Alpha (CHF)P A SFr 9.88 - 0.04 0.00

Tactical Alpha (EUR)P A € 10.08 - 0.04 0.00

Tactical Alpha (USD)P A $ 14.42 - 0.06 0.00

Technology P A € 10.08 - 0.02 0.00

Technology P A $ 15.63 - 0.05 0.00

Total Return Bond (EUR) P A € 12.38 - 0.00 0.00

Total Return Bond (USD) P A $ 18.12 - -0.01 0.00

Vital Food Syst.Hdg PA SFr 10.33 - 0.06 -

Vital Food Syst.Hdg PA € 10.34 - 0.05 -

Vital Food Syst.Hdg PA $ 10.49 - 0.06 -

William Blair Gbl Gth P A F $ 10.50 - -0.01 0.00

William Blair Gbl Gth P A F € 10.61 - -0.04 0.00

Wld Gold Expertise P A F SFr 25.76 - -0.30 0.00

Wld Gold Expertise P A € 20.16 - -0.24 0.00

Wld Gold Expertise P A $ 26.32 - -0.32 0.00

Lombard Odier Funds II

Balanced (EUR) P A F € 109.74 - 0.05 0.00

Conservative (EUR) P A F € 105.95 - -0.02 0.00

LO Selection

Balanced (CHF) P A F SFr 102.07 - 0.12 0.00

Balanced (EUR) P A F € 111.02 - 0.06 0.00

Conservative (CHF) P A F SFr 101.53 - 0.03 0.00

Conservative (EUR) P A F € 107.06 - -0.01 0.00

Conservative (USD) P A F $ 102.85 - 0.07 0.00

Global Allocation (GBP) P A F £ 8.74 - 0.02 0.00

Growth (CHF) P A F SFr 102.86 - 0.14 0.00

Growth (EUR) P A F € 114.45 - 0.09 0.00

M & G Securities Ltd (UK)

Property & Other UK Unit Trusts

M&G Property Portfolio A Acc 80.15 84.36 0.01 2.83

M & G (Guernsey) Ltd (GSY)Regulated

The M&G Offshore Fund Range

American Fund 111.44 116.09 -0.65 0.00

Corporate Bond 1262.25 1301.29 1.66 3.33

Global Basics 2333.17 2430.39 3.30 0.14

Global Leaders 2706.17 2818.93 -6.10 1.67

High Yield Corporate Bond 993.96 1024.71 0.78 5.78

Episode Macro Fund £ 95.43 99.40 -0.06 0.00

Optimal Income Fund 133.15 138.70 0.04 2.96

Recovery Fund Limited 'A' Participating Shares £ 102.79 107.08 0.28 0.84

Recovery Fund Limited 'I' Participating Shares £ 103.07 107.36 0.28 1.59

Strategic Corporate Bond Fund 126.86 132.14 0.14 3.10

UK Growth 1249.63 1301.70 2.02 1.59

UK Select Fund 966.82 1007.11 0.36 1.62

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 € 17.41 - 0.06 0.00

Asia ex-Japan A1 $ 23.73 - -0.04 0.00

China Equity Fd A1 $ 9.73 - -0.01 0.00

Continental European Eqty A1 € 12.62 - 0.05 0.00

Emer Mkts Debt Lo Curr Fd A1 $ 15.10 - 0.02 0.00

Emerging Markets Debt A1 $ 33.89 - 0.06 0.00

Emerging Markets Eq.A1 $ 13.33 - 0.01 0.00

European Concentrated A1 € 13.22 - 0.06 0.00

European Core Eq A1 € 21.83 - 0.13 0.00

European Res.A1 € 22.34 - 0.09 0.00

European Smaller Companies A1 € 31.04 - 0.14 0.00

European Value A1 € 23.61 - 0.05 0.00

Global Bond A1 $ 11.70 - 0.00 0.00

Global Conc.A1 $ 27.05 - 0.04 0.00

Global Energy Fund A1 $ 14.62 - -0.04 0.00

Global Equity A1 $ 35.29 - 0.08 0.00

Global Equity A1 € 16.96 - 0.08 0.00

Global Multi-Asset A1 $ 15.73 - 0.02 0.00

Global Res.A1 $ 21.05 - 0.01 0.00

Global Total Return A1 € 12.88 - 0.04 0.00

High Yield A1 $ 23.42 - 0.02 0.00

High Yield Fund A1 € 12.89 - 0.04 0.00

Inflation-Adjusted Bond A1 $ 15.33 - 0.02 0.00

Japan Equity A1 $ 8.06 - 0.11 0.00

Latin American Equity Fd A1 $ 22.18 - 0.13 0.00

Limited Maturity A1 $ 14.02 - 0.00 0.00

Prudent Wealth Fd A1 $ 12.20 - 0.04 0.00

Research Bond A1 $ 16.00 - 0.03 0.00

UK Equity A1 £ 6.74 - 0.02 0.00

US Conc.Growth A1 $ 11.22 - -0.02 0.00

US Government Bond A1 $ 16.83 - 0.02 0.00

Value A1 $ 15.54 - -0.06 0.00

MMIP Investment Management Limited (GSY)Regulated

Multi-Manager Investment Programmes PCC Limited

European Equity Fd Cl A Initial Ser € 1740.62 1747.40 65.24 0.00

Japanese Equity Fd Cl A Initial Ser ¥ 182439.00 183516.00 6670.00 0.00

MMIP - US EQUITY CLASS A 01 June 07 Series $ 919.68 922.45 18.28 0.00

Pacific Basin Fd Cl A Initial Ser $ 2389.85 2417.75 44.72 0.00

UK Equity Fd Cl A Series 01 £ 1583.36 1599.89 21.29 0.00

Diversified Absolute Rtn Fd USD Cl AF2 $ 1497.08 - 10.74 0.00

Diversified Absolute Return Stlg Cell AF2 £ 1510.24 - 10.86 0.00

MAM Funds (IRL)Regulated

Miton Global Diversified Income A 104.67 - 0.09 -

Fund Bid Offer D+/- Yield

Man InvestmentsOther International Funds

Man AHL Alpha USD Shares $ 790.34 - -6.51 0.00

Man AHL Diversified Plc $ 91.14 - -1.04 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 $ 20.86 - 0.25 0.00

Asia Total Return Fund (Class AA) F $ 1.03 - 0.00 2.64

Asia Value Dividend Equity Fund AA F $ 1.42 - 0.01 1.02

American Growth Fund AA F $ 1.19 - 0.01 0.00

Asian Equity Fund A $ 2.81 - 0.01 0.37

Asian Equity Fund AA F $ 0.90 - 0.00 0.38

Asian Small Cap Equity Fund AA F $ 1.85 - 0.01 0.55

China Value Fund A $ 7.23 - 0.06 0.75

China Value Fund AA F $ 2.27 - 0.02 0.49

Dragon Growth Fund A $ 1.59 - 0.01 1.40

Dragon Growth Fund AA F HK$ 7.71 - 0.04 1.04

Emerging Eastern Europe Fund AA F $ 2.01 - 0.01 1.47

Emerging Eastern Europe Fund A $ 4.67 - 0.02 1.79

Emerging Markets Infrastructure Fund Class AA $ 0.99 - 0.01 -

European Growth Fund A $ 9.49 - 0.16 0.92

European Growth Fund AA F $ 0.68 - 0.01 0.57

Global Contrarian Fund AA F $ 0.87 - 0.00 0.00

Global Property Fund AA F $ 0.91 - 0.01 0.64

Global Resources Fund AA F $ 1.03 - 0.00 0.00

Healthcare Fund AA F $ 1.21 - 0.01 0.00

India Equity Fund AA F $ 1.05 - 0.01 0.00

International Growth Fund A $ 3.50 - 0.03 0.04

International Growth Fund AA F $ 0.81 - 0.01 0.00

Japanese Growth Fund A $ 2.64 - 0.07 0.19

Japanese Growth Fund AA F $ 0.68 - 0.02 0.00

Latin America Equity Fund AA F $ 1.23 - 0.01 1.02

Russia Equity Fund AA F $ 0.64 - 0.00 0.63

Strategic Income AA F $ 1.14 - 0.00 3.43

Taiwan Equity Fund AA F $ 1.37 - 0.00 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 $ 0.93 - 0.00 4.86

US Small Cap Equity Fund AA F $ 0.94 - 0.01 0.00

US Treasury Inflation-Protected Securities Fund AA F $ 1.40 - 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 £ 20.88 21.09 0.14 0.00

Marlborough Tiger Fund Ltd F £ 27.81 28.09 0.66 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 $ 401.96 - -27.30 -

Global Energy & Resources Fund $ 90.86 - -6.61 -

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 € 100.94 - -0.24 0.00

Mir. Ac. All. Cons A EUR € 103.06 - -0.24 0.00

Mir. - Conv. Bonds A EUR € 115.59 - 0.32 0.00

Mir. - Eq Asia ex Jap A $ 168.85 - -0.34 0.00

Mir. - Eq Glb Emrg Mkt A $ 108.59 - -0.17 -

Mir. - Eq Eur exUK A Cap € 87.08 - 0.49 0.00

Mir. - Eq Global A USD $ 103.94 - 1.29 0.00

Mir. -Eq Spain A € 18.51 - 0.25 0.00

Mir. - Eq Swiss Sm/Mid A SFr 207.19 - 0.93 0.00

Mir. - Eq UK £ 1.74 1.82 0.01 -

Mir. - Eq US A USD $ 129.30 - -0.48 0.00

MitonOptimal Offshore (GSY)www.MitonOptimal.comRegulated

Core Diversified Fund (USD) $ 110.63 - 0.83 0.00

Core Diversified Fund (EUR) € 92.95 - 0.65 0.00

Core Diversified Fund (GBP) £ 101.46 - 0.74 0.00

Core Diversified USD E Class $ 100.34 - 0.63 -

Core Diversified GBP E Class £ 99.65 - 0.64 -

Core Diversified SGD E Class S$ 99.42 - 0.64 -

Global Real Estate Fund $ 103.80 - 1.15 0.00

International Diversified $ 99.33 - 0.10 0.00

International Beta Equity $ 106.23 - 1.12 0.00

International Equity $ 102.97 - 1.03 0.00

Managed Flexible US$ Fund $ 103.87 - 0.21 0.00

Offshore Global (GBP) £ 92.72 - 0.30 0.00

Offshore Global (USD) $ 85.52 - 0.23 0.00

Offshore Special Situations (GBP) £ 131.43 - -0.46 0.00

Offshore Special Situations (USD) $ 120.63 - -0.46 0.00

Offshore Special Situations (EUR) € 101.11 - -0.39 0.00

Offshore Special Situations (YEN) ¥ 10634.59 - -55.32 0.00

Rhodium USD $ 93.25 - 0.30 0.00

Rhodium GBP £ 90.71 - 0.22 0.00

Rhodium AUD A$ 94.79 - 0.25 0.00

Rhodium SGD S$ 89.53 - 0.20 0.00

Rhodium THB THB 918.30 - 1.72 0.00

Special Situations USD E Class $ 97.63 - -0.37 -

Special Situations GBP E Class £ 98.57 - -0.35 -

Special Situations SGD E Class S$ 97.33 - -0.37 -

Morant Wright Management Ltd (CYM)Regulated

MW Japan Fd Ltd A $ 17.51 - 0.03 0.00

MW Japan Fd Ltd B $ 17.91 - 0.02 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 $ 37.29 - 0.26 0.00

Absolute Return Currency A F € 23.27 - 0.03 0.00

Asian Equity A F $ 42.79 - 0.07 0.00

Asian Property A F $ 18.52 - 0.06 0.00

Asian Property AX F £ 10.77 - 0.00 1.15

Diversified Alpha Plus A F € 28.72 - 0.16 0.00

Emerg Europ, Mid-East & Africa Eq A F € 59.74 - -0.06 0.00

Emerging Markets Debt A F $ 82.26 - -0.04 0.00

Emerging Markets Domestic Debt AX F £ 16.10 - 0.00 5.42

Emerging Markets Equity A F $ 38.50 - 0.22 0.00

Euro Bond A F € 14.02 - 0.00 0.00

Euro Corporate Bond AX F £ 23.27 - 0.12 4.62

Euro Liquidity A F € 12.89 - 0.00 0.00

Euro Strategic Bond A F € 38.38 - -0.08 0.00

European Currencies High Yield Bd A F € 18.53 - -0.05 0.00

European Equity Alpha A F € 32.83 - 0.11 0.00

European Property A F € 22.55 - 0.13 0.00

Eurozone Equity Alpha A F € 8.15 - 0.04 0.00

Global Bond A F $ 40.57 - -0.05 0.00

Global Brands A F $ 77.21 - 0.32 0.00

Global Convertible Bond A F $ 36.08 - 0.13 0.00

Global Property A F $ 24.16 - 0.19 0.00

Indian Equity A F $ 26.51 - 0.21 0.00

Latin American Equity A F $ 68.87 - 0.87 0.00

Short Maturity Euro Bond A F € 20.06 - 0.01 0.00

US Dollar Liquidity A F $ 13.03 - 0.00 0.00

US Growth A F $ 41.30 - 0.32 0.00

US Growth AH F € 28.73 - 0.22 0.00

US Growth AX F £ 25.37 - 0.11 0.00

US Property A F $ 53.18 - 0.33 0.00

Fund Bid Offer D+/- Yield

Morgens Waterfall Vintiadis.co IncOther International Funds

Phaeton Intl (BVI) Ltd (Est) $ 380.04 - -4.95 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 $ 98.06 98.06 0.05 0.00

ASG Laser Fund I/A (USD) H $ 1168.62 1168.62 1.26 0.00

Harris Associates Global Value Fund H € 171.56 171.56 1.25 0.00

Harris Associates US Large Cap Value Fund $ 159.84 159.84 -0.15 0.00

Loomis Sayles Emerging Debt & Currencies Fund IA $ 164.96 164.96 0.39 0.00

Loomis Sayles Global Credit Fund I/A (USD) H $ 145.25 145.25 0.33 0.00

Loomis Sayles US Large Cap Value $ 101.60 101.60 -0.23 0.00

Vaughan Nelson US Small Cap Val Fund IA $ 197.59 197.59 0.04 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 0.01 5.44

Loomis Sayles Multisector Inc Fd I USD $ 13.67 13.67 0.02 5.65

Loomis Sayles Inst High Inc Fd I USD $ 8.47 8.47 0.03 9.98

Loomis Sayles Global Opportunist Bond Fd I USD $ 14.34 14.34 0.02 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 £ 9.86 - 0.06 0.00

Nevsky Capital LLP (IRL)10 Old Burlington Street W1S 3AG +44(0)20 7360 8888FSA Recognised

Traditional Funds Plc

Eastern European $ 84.16 - 0.11 0.00

Nevsky Capital LLPOther International Funds

Nevsky Fund Plc EUR Acc € 1135.08 - 5.95 0.00

Nevsky Fund Plc GBP Acc £ 1142.17 - 6.15 0.00

Nevsky Fund Plc USD Acc $ 1151.82 - 6.29 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 $ 126.59 - 0.21 0.00

Asia Pacific Bond USD CNY Hedged $ 113.62 - 0.21 0.00

Asia Pacific Equity Fund USD Class A $ 109.66 - 0.33 2.38

Asia Pacific Equity Fund EUR Class B € 106.71 - 0.32 2.65

Asia Pacific Equity Fund GBP Class C £ 108.32 - 0.32 2.50

Asia Pacific Equity Fund CNY USD Hedged Class F $ 113.53 - 0.37 2.32

Asia Pacific Equity Inc SGD Class D S$ 121.77 - 0.38 1.16

Asia Pacific Equity Inc USD I Class D $ 122.63 - 0.38 1.43

Dynamic European Equity EUR Cls D € 121.38 - 0.78 1.06

Dynamic European Equity GBP Cls D £ 129.29 - 0.84 1.10

Dynamic European Equity USD Cls D $ 121.98 - 0.80 1.01

Total Return Bond USD Cls $ 158.67 - 0.25 0.00

Total Return Bond EUR Cls € 149.64 - 0.23 0.00

Total Return Bond GBP Cls £ 167.58 - 0.26 0.00

Total Return Bond Fund Canadian Dollar Class C$ 110.31 - 0.14 0.00

Total Return Bond Fund CHF SFr 113.99 - 0.17 0.00

Total Return Bond Fund INR Hdg R $ 116.65 - 0.70 0.00

Total Return Bond Fund USD $ 120.60 - 0.21 0.00

Total Return Bond Fund USD I $ 115.89 - 0.18 0.00

Total Return Bond GBP Distributor Class £ 117.64 - 0.17 4.18

US Growth Class A USD $ 121.43 - -0.76 0.00

US Growth Class B EUR € 117.17 - -0.72 0.00

US Growth Class C GBP £ 119.74 - -0.75 0.00

US Growth Class D CHF SFr 119.50 - -0.74 0.00

US Growth Class I USD $ 109.72 - -0.69 0.00

Wealthy Nations Bond USD Cls A $ 119.21 - 0.17 4.64

Wealthy Nations Bond EUR Cls B € 115.93 - 0.17 5.05

Wealthy Nations Bond GBP Cls C £ 118.28 - 0.17 4.76

Wealthy Nations Bond CHF Cls DSFr 114.63 - 0.17 2.26

Wealthy Nations Bond EUR Cls D € 115.23 - 0.17 2.02

Wealthy Nations Bond GBP Cls D £ 118.93 - 0.17 4.55

Wealthy Nations Bond CHF Cls ESFr 114.71 - 0.17 4.99

Wealthy Nations Bond INR Hdg Cls D $ 115.76 - 0.59 1.70

Wealthy Nations Bond INR Hdg I Cls D $ 115.80 - 0.58 2.26

Wealthy Nations Bond NOK Cls DNKr 117.44 - 0.17 2.16

Wealthy Nations Bond USD Cls D $ 116.19 - 0.18 1.94

Wealthy Nations Bond USD CNY Hedged Class F $ 118.25 - 0.20 4.13

Wealthy Nations Bond SGD Class G S$ 167.68 - 0.26 4.54

Wealthy Nations Bond Class H S$ 111.00 - 0.17 4.84

Wealthy Nations Bond Class I $ 115.60 - 0.19 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 $ 102.98 - 1.41 0.00

Tactical Opps EUR Cls € 85.00 - 1.10 0.00

Tactical Opps GBP Cls £ 94.91 - 1.27 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 £ 1.7089 - 0.0017 1.91

Global Equity £ 1.4310 - -0.0037 1.89

Global Balanced £ 1.1668 - -0.0011 2.14

Global Balanced (Accumulation) £ 1.2796 - -0.0012 2.10

Bridge £ 1.3688 - -0.0030 1.98

Sterling Fixed Interest Class £ 0.8568 - 0.0011 3.99

Global Fixed Interest Class £ 1.0598 - 0.0013 4.42

Diversified Assets £ 1.1330 - 0.0010 2.92

Nordea 1, SICAV (LUX)E-Mail: nordeafunds@nordea.lu, Phone: +352 43 39 50 0FSA Recognised

Emerging Consumer Fund F € 16.13 - -0.03 0.00

European Alpha Fund F € 8.56 - -0.06 0.00

European Value Fund € 40.59 - -0.03 0.00

Far Eastern Equity Fund $ 18.85 - 0.00 0.00

Latin American Equity Fund € 11.98 - 0.08 0.00

Nordic Equity Fund € 56.03 - 0.01 0.00

North American Growth Fund H $ 8.62 - -0.07 0.00

North American Value Fund $ 31.63 - -0.10 0.00

European High Yield Bond Fund F € 24.46 - 0.30 0.00

Global Stable Equity Fund F € 10.33 - -0.05 0.00

Heracles Long/Short MI Fund - AP - EUR F € 52.48 - -0.12 0.00

Northwest Investment Management (HK) Ltd11th Floor, Kinwick Centre, 32, Hollywood Road, Central Hong Kong +852 9084 4373Other International Funds

Northwest $ class $ 1724.15 - -20.53 0.00

Northwest China Opps $ class $ 2279.95 - 3.06 0.00

Northwest China Opps € class € 2233.31 - 3.88 0.00

Northwest Warrant $ class $ 518.73 - 31.34 0.00

Oasis Crescent Management Company LtdOther International Funds

Oasis Crescent Equity Fund R 7.70 - 0.01 0.41

Full fund performance data atwww.ft.com/funds MANAGED FUNDS SERVICE

DECEMBER 21 2012 Section:Stats Time: 20/12/2012 - 19:27 User: sheehanr Page Name: UT5 EUR, Part,Page,Edition: EUR, 20, 1

FINANCIAL TIMES FRIDAY DECEMBER 21 2012 ★ 21

Fund Bid Offer D+/- Yield

Oasis Global Mgmt Co (Ireland) Ltd (IRL)Regulated

Oasis Global Investment (Ireland) Plc

Oasis Global Equity $ 21.30 - 0.05 0.68

Oasis Crescent Global Investment Fund (Ireland) plc

Oasis Crescent Global Equity Fund $ 21.47 - 0.04 0.62

OasisCresGl Income Class A $ 10.99 - 0.00 2.62

OasisCresGl LowBal D ($) Dist $ 10.64 - 0.00 3.15

OasisCresGl Med Eq Bal A ($) Dist $ 10.35 - 0.01 -

Oasis Crescent Gbl Property Eqty $ 8.46 - 0.02 3.00

Odey Asset Management LLP (CYM)Regulated

OEI MAC Inc A £ 323.80 - 5.23 0.00

OEI Mac Inc B £ 177.71 - 2.26 0.00

OEI MAC Inc USD $ 1787.64 - 27.44 0.00

Odey European Inc EUR € 708.38 - 6.97 0.00

Odey European Inc A GBP £ 269.05 - 2.69 0.00

Odey European Inc B GBP £ 152.74 - 1.52 0.00

Odey European Inc USD $ 330.67 - 3.38 0.00

Giano Capital EUR Inc € 3997.70 - 0.10 0.00

Odey Asset Management LLP (IRL)FSA Recognised

Odey OEAF EUR A Class € 104.79 - 0.63 0.00

Odey OEAF GBP D Class £ 122.17 - 0.98 0.00

Odey Pan European € 239.59 - 1.24 0.00

Odey Pan European GBP D £ 156.76 - 1.13 0.00

Odey Allegra STG A £ 99.39 - 0.52 0.00

Odey Allegra USD $ 121.07 - 0.79 0.00

Odey Allegra European EUR € 167.43 - 1.01 0.00

Odey Allegra European EUR I F € 163.81 - 0.99 0.00

Odey Allegra European USD $ 170.70 - 1.61 0.00

Odey Allegra European GBP £ 195.64 - 1.58 0.00

Odey Allegra European GBP I £ 160.68 - 0.52 -

Odey Allegra International GBP Class £ 147.80 - 0.77 0.00

Odey Allegra International GBP D Inc F £ 133.89 - 0.69 0.00

Odey Allegra International Euro Class € 116.07 - 0.37 0.00

Odey Allegra International Euro I Class € 106.88 - 0.34 0.00

Odey Investments Plc (IRL)Regulated

Odey Giano European Fund EUR € 101.51 - -0.04 0.00

Odey Giano European Fund GBP £ 100.97 - -0.07 0.00

Odey Giano European Fund USD $ 102.18 - -0.08 -

Odey Odyssey Fund USD $ 114.49 - 1.07 0.00

Odey Odyssey Fund GBP I £ 114.11 - 1.04 0.12

Odey Odyssey Fund GBP R £ 113.50 - 1.04 0.00

Odey Odyssey Fund EUR € 102.90 - 0.95 -

Odey Wealth Management (CI) Ltd (IRL)FSA Recognised

ODEY OPPORTUNITY CHF SFr 102.85 - 0.00 0.00

ODEY OPPORTUNITY CHF I SFr 103.18 - 0.01 0.00

ODEY OPPORTUNITY EUR € 120.35 - 0.01 0.00

ODEY OPPORTUNITY EUR I € 180.27 - 0.03 0.00

ODEY OPPORTUNITY GBP I R £ 199.07 - 0.03 0.00

ODEY OPPORTUNITY GBP R £ 127.99 - 0.02 0.00

ODEY OPPORTUNITY NOK NKr 109.10 - -0.01 0.00

ODEY OPPORTUNITY NOK I NKr 111.75 - 0.05 0.00

ODEY OPPORTUNITY USD $ 127.25 - 0.01 0.00

ODEY OPPORTUNITY USD I $ 189.68 - 0.03 0.00

Omnia Fund LtdOther International Funds

Estimated NAV $ 483.67 - 33.57 -

Optima Fund ManagementOther International Funds

Optima Fd NAV $ 76.05 - -0.18 0.00

Optima Discretionary Macro Fund Limited $ 82.42 - 0.13 0.00

The Dorset Energy Fd Ltd NAV $ 42.81 - 0.88 0.00

Platinum Fd Ltd $ 70.34 - 0.34 0.00

Platinum Fd Ltd EUR € 13.93 - 0.07 0.00

Platinum Japan Fd Ltd $ 33.89 - 0.14 0.00

Optima Emerging Markets Fd Ltd $ 14.29 - 0.03 0.00

Optima Partners Global Fd $ 12.30 - 0.00 0.00

Optima Partners Focus Fund A $ 12.22 - -0.03 0.00

Cuttyhunk II Limited Unrestricted USD Acc NAV $ 1172.47 - -6.39 0.00

Orbis Investment Management Ltd (BMU)Regulated

Orbis Global Equity $ 124.53 - 1.92 0.00

Orbis Optimal (US$) $ 72.50 - 0.29 0.00

Orbis Optimal (Euro) € 24.34 - 0.09 0.00

Orbis Optimal (Yen) ¥ 977.00 - 6.00 0.00

Orbis Leveraged (US$) $ 116.06 - 1.39 0.00

Orbis Leveraged (Euro) € 37.96 - 0.44 0.00

Orbis Leveraged (Yen) ¥ 908.00 - 11.00 0.00

Orbis Japan Equity (US$) $ 23.88 - 0.19 0.00

*Orbis Prices as of December 13th

Orbis Sicav (LUX)Regulated

Orbis Japan Equity (Yen) ¥ 2288.00 - 18.00 0.00

Orbis Japan Equity (Euro) € 15.48 - 0.11 0.00

Orbis Asia ex-Japan - Investor Shares $ 18.35 - 0.29 0.00

Orbis Global Equity - Investor Shares € 93.81 - 0.72 0.00

Orbit Asset ManagementOther International Funds

Orbit Global Strategy $ 147.04 - 1.62 0.00

Orbit Euro Strategies € 128.27 - 1.55 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 € 107.26 - 0.07 0.00

Pictet-Absl Rtn Glo Cons-P EUR F € 104.89 - 0.07 0.00

Pictet-Absl Rtn Glo Cons-Pdy EUR F € 101.10 - 0.07 0.61

Pictet-Absl Rtn Glo Div-I EUR F € 124.06 - 0.07 0.00

Pictet-Absl Rtn Glo Div-P EUR F € 119.16 - 0.07 0.00

Pictet-Absl Rtn Glo Div-Pdy EUR F € 115.01 - 0.06 0.29

Pictet-Absl Rtn Glo Div-R EUR F € 115.20 - 0.06 0.00

Pictet-AbsRetGloDiv-HI CHF F SFr 179.55 - 0.10 0.00

Pictet-AbsRetGloDiv-HI GBP F £ 104.52 - 0.06 0.00

Pictet-AbsRetGloDiv-HI JPY F ¥ 13767.00 - 8.00 0.00

Pictet-AbsRetGloDiv-HI USD F $ 157.04 - 0.09 0.00

Pictet-AbsRetGloDiv-HP CHF F SFr 172.43 - 0.09 0.00

Pictet-AbsRetGloDiv-HPdy GBP F £ 97.08 - 0.06 0.22

Pictet-AbsRetGloDiv-HP USD F $ 150.81 - 0.08 0.00

Pictet-Agriculture-I EUR F € 151.21 - 0.20 0.00

Pictet-Agriculture-I USD F $ 200.55 - 0.08 0.00

Pictet-Agriculture-P EUR F € 146.79 - 0.19 0.00

Pictet-Agriculture-P dy EUR F € 146.80 - 0.19 0.00

Pictet-Agriculture-P dy GBP F £ 119.65 - 0.23 0.00

Pictet-Agriculture-P dy USD F $ 194.69 - 0.08 0.00

Pictet-Agriculture-R EUR F € 143.18 - 0.18 0.00

Pictet-Agriculture-R USD F $ 189.90 - 0.07 0.00

Pictet-Agriculture-P USD F $ 194.70 - 0.08 0.00

Pictet-Asian Equities Ex Japan-I USD F $ 188.79 - -0.33 0.00

Pictet-Asian Equities Ex Japan-P USD F $ 175.31 - -0.31 0.00

Fund Bid Offer D+/- Yield

Pictet-Asian Equities Ex Japan-P dy USD F $ 171.73 - -0.31 0.15

Pictet-Asian Equities Ex Japan-HI EUR F € 123.22 - -0.22 0.00

Pictet-Asian Local Currency Debt-I EUR F € 121.50 - -0.02 0.00

Pictet-Asian Local Currency Debt-I USD F $ 161.15 - -0.17 0.00

Pictet-Asian Local Currency Debt-P EUR F € 116.49 - -0.01 0.00

Pictet-Asn Lcl Ccy Dbt-Pdy USD F $ 131.90 - -0.14 2.65

Pictet-Asn Lcl Ccy Dbt-Pdy GBP F £ 82.33 - 0.04 2.68

Pictet-Biotech-P USD $ 364.07 - -4.23 0.00

Pictet-Biotech-P dy GBP F £ 223.67 - -2.92 0.00

Pictet-Biotech-HP EUR F € 270.03 - -3.14 0.00

Pictet-Biotech-I USD F $ 398.60 - -4.63 0.00

Pictet-Biotech-P dy USD F $ 363.90 - -4.23 0.00

Pictet-CHF Liquidity-P F SFr 124.29 - -0.01 0.00

Pictet-Clean Energy-I EUR F € 49.96 - 0.11 0.00

Pictet-Clean Energy-I USD F $ 66.26 - 0.07 0.00

Pictet-Clean Energy-P EUR F € 47.68 - 0.09 0.00

Pictet-Clean Energy-P USD F $ 63.24 - 0.07 0.00

Pictet-Clean Energy-P dy USD F $ 63.24 - 0.07 0.00

Pictet-Clean Energy-P dy GBP F £ 38.86 - 0.10 0.00

Pictet-Convertible Bonds-I EUR F € 98.43 - 0.07 0.00

Pictet-Convertible Bonds-P EUR F € 96.01 - 0.06 0.00

Pictet-Convertible Bonds-P dy EUR F € 94.79 - 0.06 0.49

Pictet-Convertible Bonds-R EUR F € 93.64 - 0.06 0.00

Pictet-Digital Communication-I EUR F € 122.42 - -0.26 0.00

Pictet-Digital Communication-I USD F $ 162.37 - -0.50 0.00

Pictet-Digital Communication-P EUR F € 111.39 - -0.25 0.00

Pictet-Digital Communication-P USD $ 147.74 - -0.46 0.00

Pictet-Digital Communication-P dy USD F $ 142.48 - -0.45 0.00

Pictet-Digital Communication-P dy GBP F £ 88.61 - -0.15 0.00

Pictet-Digital Communication-R EUR F € 102.71 - -0.22 0.00

Pictet-Eastern Europe-I EUR F € 377.00 - -0.33 0.00

Pictet-Eastern Europe-P EUR F € 362.88 - -0.33 0.00

Pictet-Eastern Europe-P dy EUR F € 358.43 - -0.32 0.00

Pictet-Eastern Europe-P dy GBP F £ 292.12 - 0.36 0.00

Pictet-Em Lcl Ccy Dbt-HI EUR F € 138.88 - 0.30 0.00

Pictet-Em Lcl Ccy Dbt-HP EUR F € 133.20 - 0.28 0.00

Pictet-Em Lcl Ccy Dbt-I EUR F € 159.07 - -0.21 0.00

Pictet-Em Lcl Ccy Dbt-I USD F $ 210.92 - 0.47 0.00

Pictet-Em Lcl Ccy Dbt-P EUR F € 152.52 - -0.20 0.00

Pictet-Em Lcl Ccy Dbt-P USD F $ 202.23 - 0.44 0.00

Pictet-Em Lcl Ccy Dbt-Pdy USD F $ 146.75 - 0.32 5.27

Pictet-Em Lcl Ccy Dbt-Pdy GBP F £ 92.85 - 0.07 5.30

Pictet-Emerging Markets-I USD F $ 556.12 - 0.33 0.00

Pictet-Emerging Markets-P USD $ 523.27 - 0.30 0.00

Pictet-Emerging Markets-P EUR F € 394.52 - 0.58 0.00

Pictet-Emerging Markets-P dy USD F $ 517.89 - 0.29 0.00

Pictet-Emerging Markets Index-I USD F $ 258.56 - 1.73 0.00

Pictet-Emerging Markets Index-IS USD F $ 258.43 - 2.92 0.00

Pictet-Emerging Markets Index-P dy USD F $ 229.01 - 1.52 1.65

Pictet-Emerging Markets Index-R USD F $ 245.92 - 2.77 0.00

Pictet-Emerging Markets Index-P USD $ 252.77 - 1.69 0.00

Pictet-Emerging Markets Index-R dy GBP F £ 145.34 - 1.43 1.38

Pictet-EUR Bonds-HI CHF F SFr 642.53 - 0.44 0.00

Pictet-EUR Bonds-HP CHF F SFr 616.98 - 0.41 0.00

Pictet-EUR Bonds-I F € 477.90 - 0.33 0.00

Pictet-EUR Bonds-P F € 458.95 - 0.31 0.00

Pictet-EUR Bonds-P dy F € 304.53 - 0.20 3.19

Pictet-EUR Corporate Bonds-HI USD F $ 205.91 - 0.05 0.00

Pictet-EUR Corporate Bonds-HI CHF FSFr 242.13 - 0.06 0.00

Pictet-EUR Corporate Bonds-HP USD F $ 196.60 - 0.05 0.00

Pictet-EUR Corporate Bonds-HP CHF FSFr 231.22 - 0.05 0.00

Pictet-EUR Corporate Bonds-I F € 180.27 - 0.04 0.00

Pictet-EUR Corporate Bonds-P F € 172.06 - 0.04 0.00

Pictet-EUR Corporate Bonds-P dy F € 104.30 - 0.02 3.55

Pictet-EUR Government Bonds-P dy F € 105.49 - 0.14 3.24

Pictet-EUR High Yield-HI CHF F SFr 283.31 - 0.61 0.00

Pictet-EUR High Yield-HP CHF F SFr 268.12 - 0.58 0.00

Pictet-EUR High Yield-I F € 209.40 - 0.45 0.00

Pictet-EUR High Yield-P F € 198.16 - 0.43 0.00

Pictet-EUR High Yield-P dy F € 90.84 - 0.19 5.60

Pictet-EUR Inflation Linked Bonds-P dy F € 109.32 - 0.20 1.31

Pictet-EUR Short Mid-Term Bonds-HI CHF FSFr 114.64 - 0.06 0.00

Pictet-EUR Short Mid-Term Bonds-HP CHF FSFr 112.43 - 0.05 0.00

Pictet-EUR Short Mid-Term Bonds-P F € 129.11 - 0.06 0.00

Pictet-EUR Short Mid-Term Bonds-I F € 131.46 - 0.06 0.00

Pictet-EUR Short Mid-Term Bonds-P dy F € 89.61 - 0.04 3.31

Pictet-EUR Sov.Sht.Mon.Mkt EUR I € 103.37 - 0.00 0.00

Pictet-EUR Sov.Sht.Mon.Mkt EUR P € 102.87 - -0.01 0.00

Pictet-EUR Sov.Sht.Mon.Mkt EUR Pdy € 99.96 - 0.00 0.17

Pictet-European Sust Eq-P EUR F € 157.83 - 0.65 0.00

Pictet-Europe Index-I EUR F € 123.54 - 0.50 0.00

Pictet-Europe Index-IS EUR F € 123.41 - -0.16 0.00

Pictet-Europe Index-P EUR € 122.15 - 0.50 0.00

Pictet-Europe Index-P dy EUR F € 101.54 - 0.41 2.46

Pictet-Europe Index-R dy GBP F £ 87.27 - 0.07 2.39

Pictet-Euroland Index-P dy EUR F € 77.80 - 0.40 3.13

Pictet-Euroland Index-R dy GBP F £ 67.32 - 0.49 2.98

Pictet-European Equity Selection-I EUR F € 518.01 - 2.51 0.00

Pictet-European Equity Selection-P EUR F € 492.53 - 2.38 0.00

Pictet-Eu Equities Sel-Pdyistr F € 452.02 - 2.18 0.60

Pictet-Europe Index-R EUR F € 118.46 - -0.16 0.00

Pictet-European Sust Eq-I EUR F € 164.73 - 0.68 0.00

Pictet-European Sust Eq-Pdy EUR F € 138.75 - 0.58 1.60

Pictet-Generics-I USD F $ 162.93 - 0.04 0.00

Pictet-Generics-P USD F $ 152.47 - 0.02 0.00

Pictet-Generics-P dy GBP F £ 93.68 - 0.15 0.00

Pictet-Generics-P dy USD F $ 152.43 - 0.03 0.00

Pictet-World Government Bonds-P USD $ 187.88 - 0.14 0.00

Pictet-World Government Bonds-P dy USD $ 141.63 - 0.11 2.41

Pictet-Global Emerging Debt-P USD F $ 325.08 - 0.35 0.00

Pictet-Global Emerging Debt-P dy USD F $ 182.54 - 0.19 4.59

Pictet-Global Emerging Currencies-I EUR F € 82.66 - -0.18 0.00

Pictet-Global Emerging Currencies-I USD F $ 110.09 - 0.15 0.00

Pictet-Global Emerging Currencies-HI EUR F € 69.15 - 0.09 0.00

Pictet-Global Emerging Currencies-HP EUR F € 67.66 - 0.09 0.00

Pictet-Global Emerging Currencies-P EUR F € 80.86 - -0.18 0.00

Pictet-Global Emerging Currencies-P USD F $ 107.67 - 0.15 0.00

Pictet-Global Em Ccy-Pdy USD F $ 97.25 - 0.13 2.73

Pictet-Global Emerging Debt-HP EUR F € 231.81 - 0.25 0.00

Pictet-Global Emerging Debt-HP CHF FSFr 374.68 - 0.39 0.00

Pictet-Global Emerging Debt-HI EUR F € 243.49 - 0.26 0.00

Pictet-Global Emerging Debt-HI CHF FSFr 396.29 - 0.43 0.00

Pictet-Global Emerging Debt-I USD F $ 343.72 - 0.37 0.00

Pictet-Global Megatrend Selection-I USD F $ 166.30 - -0.22 0.00

Pictet-Global Megatrend Selection-I EUR F € 125.39 - -0.06 0.00

Pictet-Global Megatrend Selection-P USD F $ 160.66 - -0.23 0.00

Pictet-Global Megatrend Selection-P CHF FSFr 146.28 - -0.20 0.00

Pictet-Global Megatrend Selection-P EUR F € 121.16 - -0.05 0.00

Pictet-Glo Megatrend Sel-Pdy EUR F € 121.13 - -0.07 0.00

Pictet-Glo Megatrend Sel-Pdy GBP F £ 98.74 - 0.01 0.00

Pictet-Glo Megatrend Sel-Pdy USD F $ 160.66 - -0.22 0.00

Pictet-Global Megatrend Selection-R EUR F € 116.71 - -0.06 0.00

Pictet-Global Megatrend Selection-R USD F $ 154.79 - -0.22 0.00

Pictet-Greater China-I USD F $ 408.97 - -0.61 0.00

Pictet-Greater China-P USD F $ 381.48 - -0.58 0.00

Pictet-Greater China-P dy USD F $ 367.99 - -0.55 0.24

Pictet-Greater China-P dy GBP F £ 225.38 - -0.01 0.24

Pictet-High Dividend Sel I EUR F € 113.46 - -0.13 0.00

Pictet-High Dividend Sel P CHF F SFr 134.28 - 0.10 0.00

Pictet-High Dividend Sel P EUR F € 111.07 - -0.13 0.00

Pictet-High Dividend Sel P USD F $ 147.27 - 0.34 0.00

Pictet-High Dividend Sel Pdm GBP F £ 82.22 - -0.21 3.94

Pictet-High Dividend Sel Pdm USD F $ 132.63 - -0.16 3.92

Pictet-High Dividend Sel Pdy EUR F € 100.87 - -0.11 3.81

Pictet-High Dividend Sel R EUR F € 109.21 - -0.12 0.00

Pictet-High Dividend Sel Rdm EUR F € 98.25 - -0.46 4.04

Pictet-Indian Equities-I USD F $ 328.79 - -2.72 0.00

Pictet-Indian Equities-P USD F $ 307.10 - -2.55 0.00

Pictet-Indian Equities-P dy USD F $ 307.10 - -2.55 0.00

Pictet-Indian Equities-P dy GBP F £ 188.73 - -1.29 0.00

Pictet-Japan Index-I JPY F ¥ 8602.23 - -8.53 0.00

Pictet-Japan Index-IS JPY F ¥ 8671.95 - -9.20 0.00

Pictet-Japan Index-P JPY F ¥ 8503.82 - -8.45 0.00

Pictet-Japan Index-P dy JPY F ¥ 7770.86 - -7.72 1.68

Pictet-Japan Index-R dy GBP F £ 57.99 - 0.28 1.55

Pictet-Japanese Equities Opp-P JPY F ¥ 4643.32 - 6.84 0.00

Pictet-Japanese Equities Opp-I JPY F ¥ 4885.06 - 7.28 0.00

Pictet-Japanese Equities Opp-P dy JPY F ¥ 4601.15 - 6.77 0.00

Pictet-Japanese Equity Selection-I JPY F ¥ 7720.23 - 15.07 0.00

Pictet-Japanese Equity Selection-P JPY F ¥ 7350.05 - 14.22 0.00

Pictet-Japanese Eq Sel-Pdy GBP F £ 52.87 - 0.42 0.39

Pictet-Japanese Eq Sel-Pdy JPY F ¥ 7211.77 - 13.95 0.37

Pictet-LATAM Lc Ccy Dbt-Pdy GBP F £ 69.38 - 0.13 6.66

Pictet-LATAM Lc Ccy Dbt-I EUR F € 118.83 - -0.02 0.00

Pictet-LATAM Lc Ccy Dbt-I USD F $ 156.24 - 0.51 0.00

Pictet-LATAM Lc Ccy Dbt-P EUR F € 115.08 - -0.03 0.00

Pictet-LATAM Lc Ccy Dbt-P USD F $ 151.30 - 0.49 0.00

Pictet-LATAM Lc Ccy Dbt-Pdy USD F $ 109.24 - 0.36 6.53

Pictet-LATAM Lc Ccy Dbt-R EUR F € 111.87 - -0.03 0.00

Pictet-LATAM Lc Ccy Dbt-R USD F $ 147.14 - 0.48 0.00

Pictet-Pacific Ex Japan Index-P USD F $ 344.08 - 0.84 0.00

Pictet-Pacific Ex Japan Index-I USD F $ 348.13 - 0.85 0.00

Pictet-Pacific Ex Japan Index-IS USD F $ 349.31 - 2.59 0.00

Pictet-Pacific Ex Japan Index-P dy USD F $ 272.57 - 0.66 3.36

Fund Bid Offer D+/- Yield

Pictet-Pacific Ex Japan Index-R USD F $ 336.62 - 2.49 0.00

Pictet-Pacific Ex Japan Index-R dy GBP F £ 184.33 - 1.63 3.14

Pictet-Premium Brands-I EUR F € 116.22 - 0.17 0.00

Pictet-Premium Brands-I USD F $ 154.14 - 0.08 0.00

Pictet-Premium Brands-P EUR € 105.80 - 0.16 0.00

Pictet-Premium Brands-P USD F $ 140.32 - 0.08 0.00

Pictet-Premium Brands-P dy EUR F € 105.74 - 0.16 0.00

Pictet-Premium Brands-P dy GBP F £ 86.19 - 0.18 0.00

Pictet-Russian Equities-P USD F $ 65.40 - 0.20 0.00

Pictet-Russian Equities-P dy GBP F £ 39.92 - 0.07 0.00

Pictet-Russian Equities-I EUR F € 51.40 - -0.03 0.00

Pictet-Russian Equities-I USD F $ 68.16 - 0.20 0.00

Pictet-Russian Equities-P EUR F € 49.32 - -0.03 0.00

Pictet-Russian Equities-P dy USD F $ 64.94 - 0.19 0.00

Pictet-Security-I EUR F € 105.56 - 0.08 0.00

Pictet-Security-I USD F $ 140.00 - -0.02 0.00

Pictet-Security-P EUR F € 100.29 - 0.08 0.00

Pictet-Security-P USD F $ 133.01 - -0.02 0.00

Pictet-Security-P dy USD F $ 133.01 - -0.02 0.00

Pictet-Security-P dy GBP F £ 81.74 - 0.11 0.00

Pictet-Security-R EUR F € 96.06 - 0.07 0.00

Pictet-Security-R USD F $ 127.41 - -0.02 0.00

Pictet-Small Cap Europe-I EUR F € 671.80 - 6.08 0.00

Pictet-Small Cap Europe-P EUR F € 628.85 - 5.68 0.00

Pictet-Small Cap Europe-P dy EUR F € 619.85 - 5.60 0.12

Pictet-ST.MoneyMkt-I € 140.20 - -0.01 0.00

Pictet-ST.MoneyMkt-ICHF SFr 125.29 - 0.00 0.00

Pictet-ST.MoneyMkt-P € 137.79 - -0.01 0.00

Pictet-ST.MoneyMkt-PCHF SFr 91.22 - 0.00 1.03

Pictet-ST.MoneyMkt-IUSD $ 134.18 - -0.01 0.00

Pictet-ST.MoneyMkt-PUSD $ 132.06 - -0.01 0.00

Pictet-ST.MoneyMkt-Pdy $ 84.32 - -0.01 0.58

Pictet-ST.MoneyMkt-Pdy € 95.60 - -0.01 1.18

Pictet-Timber-HP EUR F € 85.56 - -0.02 0.00

Pictet-Timber-I USD F $ 135.04 - -0.02 0.00

Pictet-Timber-I EUR F € 101.82 - 0.07 0.00

Pictet-Timber-P USD F $ 130.36 - -0.03 0.00

Pictet-Timber-P EUR F € 98.29 - 0.07 0.00

Pictet-Timber-P dy USD F $ 124.38 - -0.03 0.77

Pictet-Timber-P dy GBP F £ 76.44 - 0.10 0.79

Pictet-US Equity Growth Selection-I USD F $ 130.99 - -0.81 0.00

Pictet-US Equity Growth Selection-P USD F $ 125.76 - -0.78 0.00

Pictet-US Eq Gr Sel-Pdy USD F $ 125.76 - -0.78 0.00

Pictet-US Equity Growth Selection-R USD F $ 121.76 - -0.75 0.00

Pictet-US High Yield-HI CHF F SFr 136.86 - 0.15 0.00

Pictet-US High Yield-HI EUR F € 92.15 - 0.11 0.00

Pictet-US High Yield-HP CHF F SFr 134.40 - 0.15 0.00

Pictet-US High Yield-HP EUR F € 90.49 - 0.10 0.00

Pictet-US High Yield-I USD F $ 137.82 - 0.15 0.00

Pictet-US High Yield-P USD F $ 135.32 - 0.15 0.00

Pictet-US High Yield-P dy USD F $ 115.33 - 0.13 5.31

Pictet-US High Yield-R USD F $ 133.23 - 0.15 0.00

Pictet-USA Index-P USD $ 120.69 - -0.92 0.00

Pictet-USA Index-I USD F $ 122.15 - -0.93 0.00

Pictet-USA Index-IS USD F $ 123.41 - -0.32 0.00

Pictet-USA Index-P dy USD F $ 112.99 - -0.86 0.84

Pictet-USA Index-R USD F $ 117.83 - -0.30 0.00

Pictet-USA Index-R dy GBP F £ 70.43 - -0.28 0.64

Pictet-USD Government Bonds-I F $ 613.32 - 0.59 0.00

Pictet-USD Government Bonds-P F $ 591.81 - 0.57 0.00

Pictet-USD Government Bonds-P dy F $ 388.78 - 0.38 2.88

Pictet-USD Short Mid-Term Bonds-I F $ 127.42 - 0.00 0.00

Pictet-USD Short Mid-Term Bonds-P F $ 125.24 - 0.00 0.00

Pictet-USD Short Mid-Term Bonds-P dy F $ 97.28 - 0.00 1.73

Pictet-USD Sov.ST.Mon.Mkt-I $ 102.32 - 0.00 0.00

Pictet-USD Sov.ST.Mon.Mkt-P $ 101.92 - -0.01 0.00

Pictet-USD Sov.ST.Mon.Mkt-Pdy $ 99.93 - -0.01 0.02

Pictet-Water-HP USD F $ 216.31 - 0.21 0.00

Pictet-Water-HR USD F $ 200.30 - 0.19 0.00

Pictet-Water-I EUR F € 182.42 - 0.18 0.00

Pictet-Water-I USD F $ 241.94 - 0.02 0.00

Pictet-Water-P EUR € 166.26 - 0.16 0.00

Pictet-Water-P USD F $ 220.51 - 0.01 0.00

Pictet-Water-P dy EUR F € 163.29 - 0.16 0.14

Pictet-Water-P dy GBP F £ 133.65 - 0.21 0.15

Pictet-Water-R USD F $ 204.20 - 0.02 0.00

Pictet-Water-R EUR € 153.96 - 0.15 0.00

Pictet-World Government Bonds-I EUR F € 146.70 - -0.40 0.00

Pictet-World Government Bonds-I USD F $ 193.86 - 0.15 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 $ 10.20 - -0.06 0.00

Diversified Income - Inst Acc $ 18.49 - 0.03 0.00

Emerging Local Bond - Inst Acc $ 14.96 - 0.03 0.00

Emerging Markets Bond - Inst Acc $ 39.88 - 0.09 0.00

Emerging Markets Corp.Bd Fund Inst Acc F $ 13.38 - 0.03 0.00

Emerging Markets Curr.Fd- Inst Acc $ 13.86 - 0.02 0.00

EuriborPLUS - Inv. Acc € 11.65 - 0.00 0.00

Euro Bond - Inst Acc € 19.51 - 0.02 0.00

Euro Credit - Inst Acc € 13.17 - 0.00 0.00

Euro Income Bond - Inst Acc F € 11.52 - 0.00 0.00

Euro Long Average Duration - Inst Acc € 16.95 - -0.01 0.00

Euro Real Return - Inst Acc € 12.68 - 0.01 0.00

Euro Ultra Long Duration - Inst Acc € 21.98 - -0.09 0.00

Global Advantage - Inst Acc $ 13.18 - 0.02 0.00

Global Bond - Inst Acc $ 25.32 - 0.02 0.00

Global Bond Ex-US - Inst Acc $ 17.21 - 0.00 0.00

Global High Yield Bond - Inst Acc $ 18.02 - 0.01 0.00

Global Investment Grade Credit - Inst Income $ 12.46 - 0.02 3.57

Global Multi-Asset - Inst Acc $ 14.44 - -0.01 0.00

Global Real Return - Inst Acc $ 17.63 - -0.01 0.00

High Yield Bond - Inst Acc $ 25.00 - 0.01 0.00

Low Average Duration - Inst Acc $ 14.47 - 0.01 0.00

PIMCO EqS Pathfinder.Eur.Fd Inst Acc F € 11.37 - -0.03 0.00

PIMCO EqS Pathfinder.Fd Inst Acc F $ 11.56 - -0.01 0.00

Socially Resp.Emerg.Mkts Bd Fd Inst Acc F $ 13.15 - 0.03 0.00

StocksPLUS{TM} - Inst Acc $ 15.36 - -0.10 0.00

Total Return Bond - Inst Acc $ 26.27 - 0.03 0.00

UK Corporate Bond - Inst Acc £ 14.74 - -0.03 0.00

UK Long Term Corp. Bnd Inst-Inst Acc £ 15.73 - -0.04 0.00

UK Sterling Inflation-Linked - Inst Acc £ 18.49 - -0.10 0.00

UK Sterling Long Average Duration - Inst Acc £ 17.95 - -0.08 0.00

UK Sterling Low Average Duration - Inst Acc £ 13.77 - 0.00 0.00

UK Total Return Bond - Inst Acc £ 13.63 - 0.00 0.00

Unconstrained Bond - Inst Acc $ 12.14 - 0.00 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 $ 118.06 - 0.82 0.00

Pioneer AssetMaster $ 858.26 - -1.51 0.00

Pioneer Div Fund I EUR € 103.13 - 0.55 -

Pioneer Div Fund I USD $ 103.61 - 0.57 -

The Meteor Opps I $ 136.09 - 1.02 0.00

The Meteor Opps I € 136.40 - 0.92 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 $ 69.53 - - -

Platinum Gold Advantage € 11.88 - - -

Platinum Global Dividend UCITS Fund $ 74.74 - 0.00 0.00

Polar Capital Funds Plc (IRL)Regulated

Asian Financials Fund Cls A USD $ 267.93 267.93 1.03 0.59

European Market Neutral Fund Cls I Euro € 9.30 9.30 -0.01 -

Financials Income Fund Cls B2 GBP Acc £ 1.26 1.26 0.01 0.00

Financial Opps I USD $ 9.99 - 0.02 0.00

GEM Growth I USD $ 10.21 - 0.07 0.00

GEM Income I USD $ 11.42 - 0.05 0.00

Global Alpha I USD $ 10.24 10.24 0.04 -

Global Insurance I GBP £ 2.48 - 0.01 0.00

Global Technology I USD $ 15.58 - 0.04 0.00

Healthcare Opps I USD $ 18.30 - -0.15 0.00

Japan Alpha I JPY ¥ 109.19 109.19 -0.22 -

Japan I JPY ¥ 1137.38 - 27.76 0.00

Fund Bid Offer D+/- Yield

North American I USD $ 11.75 11.75 -0.05 0.00

UK ARF I GBP £ 9.98 - 0.01 0.00

Polar Capital LLP (CYM)Regulated

ALVA Convertible A USD $ 111.27 - 0.50 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 $ 120.96 - 0.28 0.00

Assured USD B $ 106.36 - 0.16 0.00

Assured USD C $ 114.94 - 0.22 0.00

Assured USD D $ 108.17 - 0.18 0.00

Assured F USD $ 72.97 - 0.04 0.00

Assured GBP B £ 95.02 - 0.25 0.00

Assured GBP C £ 90.27 - 0.28 0.00

Assured EUR D € 80.79 - -0.59 0.00

Assured EUR B € 74.13 - -0.55 0.00

Assured CHF E SFr 55.69 - -0.43 0.00

Polunin Capital Partners LtdOther International Funds

Developing Countries 'A' $ 34.65 - 0.23 0.00

Emerging Markets Active $ 25.53 - -0.15 -

Luxcellence Em Mkts Tech $ 727.33 - -7.19 0.00

Em Mkts Strategy Developing $ 756.41 - 2.65 0.00

Em Mkts Strategy Small Cap $ 1038.54 - 5.62 0.00

Polunin Discovery Funds - Frontier Markets Fund $ 1042.38 - 9.39 -

Private Fund Mgrs (Guernsey) Ltd (GSY)Regulated

Monument Growth £ 355.18 359.38 0.89 0.89

Prosperity Capital Management Ltd (CYM)Regulated

RPF A Shares $ 220.49 - - 0.00

RPF D $ 13.44 - 0.23 0.00

PQF B Shares $ 486.05 - 2.88 0.00

PCF $ 421.60 426.00 6.53 0.00

CAPF $ 7.67 - -0.24 0.00

Prusik Investment Management LLP (IRL)Enquiries - 0207 493 1331Regulated

Prusik Asian Equity Income B Dist $ 129.77 - 0.16 5.36

Prusik Asia A $ 169.32 - 0.08 0.00

Prusik Asian Smaller Cos A $ 150.84 - -0.35 0.00

Purisima Investment Fds (CI) Ltd (JER)Regulated

PCG B 126.26 - 0.37 0.00

PCG C 124.71 - 0.37 0.00

Putnam Investments (Ireland) Ltd (IRL)Regulated

Putnam New Flag Euro High Yield Plc - E € 1032.32 - 1.12 5.38

Putnam New Flag Euro High Yield Plc - M € 937.36 - 1.00 4.79

R & H Fund Services (Jersey) Ltd (JER)Regulated

Camber International Equity Growth Limited £ 12.40 - -0.05 0.45

BDP Limited

Bond Fund GBP £ 10.07 - 0.01 5.89

Income Fund Sterling £ 3.29 - 0.02 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 $ 152.98 - 1.02 1.07

Canadian Equity Class B C$ 154.60 - 0.81 0.44

European Equity Class B € 151.04 - 0.93 0.71

Intl Ex North America Equity Class B $ 120.65 - 0.91 0.57

UK Bond Class B £ 104.67 - -0.10 2.04

UK Equity Class B £ 161.18 - 0.70 1.02

US Dollar Capital Growth Class $ 13.22 - -0.01 0.19

US Equity Class $ 126.33 - -1.02 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) € 94.95 - -0.48 0.00

Chinese Equities (EUR) € 54.35 - -0.06 0.00

Em Stars Equities (EUR) € 156.15 - 0.21 0.00

Emerging Markets Equities (EUR) € 140.06 - -0.35 0.00

Flex-o-Rente (EUR) € 107.70 - 0.01 0.00

Glob.Consumer Trends Equities (EUR) € 89.94 - -0.67 0.00

High Yield Bonds (EUR) € 111.93 - 0.15 0.00

Lux -O- Rente (EUR) € 127.27 - 0.06 0.00

Natural Ress Equities (EUR) € 84.40 - -0.29 0.00

New World Financials (EUR) € 35.21 - 0.18 0.00

SAM Sust. Agrib.Eq. D € 111.62 - -0.15 0.00

US Premium Equities (EUR) € 120.84 - -0.73 0.00

US Premium Equities (USD) $ 134.70 - -0.78 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 € 92.53 - 0.51 0.81

RBSG UK Equity Index Programme Ser 3 £ 24.07 - 0.12 3.07

RBSG UK Specialist Eqty Ser 3 £ 17.73 - 0.12 0.91

RBSG UK Sovereign Bond Index Prog Ser 3 £ 14.42 - -0.03 3.08

RBSG Contl Eurp Eqty Index Prog Ser 3 € 285.04 - 1.41 1.92

RBSG Japan Specialist Equity Prog Ser 3 ¥ 3581.00 - 21.00 0.66

RBSG US Equity Index Programme Ser 3 $ 49.76 - -0.38 1.05

RBSG Pacific Basin Eqty Ser 3 $ 54.12 - 0.04 1.37

RBSG Emerging Markets Ser 3 $ 34.96 - 0.00 1.10

RBSG Global Investment Grade Bond GBP Series 6 £ 126.64 - 0.20 2.76

RBSG Global Investment Grade Programme GBP S3 £ 116.68 - 0.19 2.79

RBSG UK Sovereign Bond Index Programme Series 6 £ 11.19 - -0.02 3.05

Absolute Rtn Multi Asset Prog SER 3 GBP £ 9.86 - 0.06 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 £ 1.08 - 0.00 7.84

Sterling Extra Yld Bd B £ 1.06 - 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 € 22.76 - 0.15 0.00

Cont Eur Eq F F € 1227.81 - 8.19 0.00

Cont Eur Eq SH I F £ 91.35 - 0.62 0.00

Cont Eur Eq A € 26.22 - 0.18 0.00

Emerg Mkts Eq B $ 21.98 - 0.13 0.00

Global Bond B $ 21.43 - 0.04 0.00

Japan Equity B ¥ 878.28 - 23.78 0.00

Pacific Basin B $ 23.28 - 0.10 0.00

UK Index Linked I £ 18.21 - -0.08 0.00

US Bond B F $ 17.30 - 0.02 0.00

US Equity B $ 11.05 - -0.07 0.00

US Equity EH A F € 116.56 - -0.81 0.00

World Equity II B F $ 9.88 - 0.01 0.00

RIC - OMIGSA

Acadian Emerging Markets Eq Ucits A £ 21.46 - 0.07 0.00

Acadian European Eq Ucits I € 9.23 - 0.04 2.55

Acadian Gbl Eq Ucits A € 9.96 - -0.04 0.00

Emerg Markets EQ Ucits B $ 10.40 - 0.05 0.00

Global Aggreg.Bd Fd $ 18.55 - 0.02 0.32

Global Bond B F $ 18.57 - 0.01 0.28

Global Credit Fund A F $ 13.15 - 0.02 0.45

Global Currency Fd A $ 12.16 - 0.01 0.21

US Growth Equity A F $ 16.20 - -0.10 0.05

Value Global Equity F $ 21.83 - 0.00 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 £ 20.61 - 0.06 0.00

Pan European Eq I F £ 15.66 - 0.11 0.00

Fund Bid Offer D+/- Yield

UK Equity Plus B F £ 124.58 - 0.68 0.00

US Growth I Acc F £ 11.01 - -0.09 0.00

US Quant B F $ 14.22 - -0.09 0.00

World Equity B $ 16.85 - 0.03 0.00

World Equity I F £ 18.62 - 0.02 0.00

World Equity SH-B F £ 114.53 - 0.23 0.00

SVG Investment Managers LimitedOther International

SVG UK Focus Fd Cls I £ 18.28 18.28 0.08 2.46

SVG UK Focus Fd Cls A £ 17.76 17.76 0.08 2.01

SW Mitchell Capital LLP (CYM)Regulated

S W Mitchell Class A Shares Euro € 241.39 - 8.08 0.00

S W Mitchell Class B Shares USD $ 240.11 - 8.10 0.00

SAM (LUX)Tel. +41 44 653 10 10 www.sam-group.comRegulated

SAM Smart Energy Fund GBP/A £ 12.39 - 0.00 1.13

SAM Smart Materials Fund GBP/A £ 104.80 - 0.32 0.05

SAM Sust. Climate Fund GBP/A £ 63.75 - 0.46 0.16

SAM Sust. Global Active Fd EUR/B € 119.02 - 0.24 0.00

SAM Sust. Healthy Liv Fd EUR/B € 108.10 - -1.09 0.00

SAM Sust. Water Fund GBP/A £ 123.29 - 0.06 0.99

Schroder Property Managers (Jersey) LtdOther International Funds

Indirect Real Estate SIRE £ 101.29 105.51 -0.06 4.80

Schroder Inv Mgmt (Guernsey) Ltd (GSY)PO Box 255, St Peter Port, Guernsey 01481 745 001FSA Recognised

Offshore Cash £ 1.7887000 1.7887000 0.0000100 0.00

Offshore Cash B F £ 1.8013600 1.8013600 0.0000200 0.00

SEB Asset Management S.A. (LUX)www.seb.se +352 26 68 2595Regulated

SEB Ethical Europe Fund € 2.31 2.33 -0.01 0.00

SEB Europe Fund € 3.36 3.40 -0.01 0.00

SEB European Equity Small Cap € 145.99 147.45 1.40 0.93

SEB Asset Selection Fund EUR € 13.64 14.32 -0.01 0.00

SEB Russia Fund € 9.62 9.72 0.03 0.00

SEB Eastern Europe ex Russia € 2.83 - 0.02 0.00

SEB Eastern Europe Small Cap Fund € 2.52 2.54 0.00 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 9.72 0.02 0.00

SEB Key Select I € 9.95 9.95 0.02 0.00

SEB Nordic Fund € 6.83 6.90 -0.01 0.00

SIA (SIA Funds AG) (LUX)Regulated

LTIF Alpha € 140.90 - -0.05 0.00

LTIF Classic € 248.44 - -0.15 0.00

LTIF Em.Mkt Value € 81.53 - 0.20 0.00

LTIF Natural Resources € 94.05 - 0.88 0.00

SIA (SIA Funds AG) (CH)Other International Fds

LTIF Stability Growth SFr 187.70 - -1.10 0.76

LTIF Stability Inc Plus SFr 181.10 - -9.10 0.00

SKAGEN Funds (NOR)PO Box 160, 4001 Stavanger, NorwayTel (47) 51 21 38 58 www.skagenfunds.comFSA Recognised

SKAGEN Global € 113.55 - 0.06 0.00

SKAGEN Kon-Tiki € 70.24 - 0.08 0.00

SKAGEN Vekst € 174.46 - -0.26 0.00

SKAGEN Tellus € 15.07 - 0.00 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 $ 295.71 - 2.54 0.48

Mid Ocean World Inv $ 440.54 - 3.25 0.20

Pancurri Investment Ltd (Est) $ 1050.26 - 7.47 0.00

SMT Fund Services (Ireland) LimitedRegulated

Monthly Dividend High Yield $ 7.20 - 0.01 0.00

Daiwa Gaika MMF

AU$ Portfolio A$ 0.01 - 0.00 -

US$ Portfolio $ 0.01 - 0.00 -

Euro Portfolio € 0.01 - 0.00 -

Canadian Dllr Pfolio C$ 0.01 - 0.00 -

New Zealand Dllr Pfolio NZ$ 0.01 - 0.00 -

Daiwa Bond Series

Monthly Dividend AUD Bd A$ 10.42 - 0.02 0.00

Monthly Dividend EUR Bd € 10.25 - 0.01 0.00

Monthly Dividend CAD Bd C$ 10.44 - 0.03 0.00

Mthly Div US Preferred Secs $ 7.69 - 0.01 0.00

Daiwa Equity Fund Series

New Major Economies $ 11.44 - 0.01 0.00

Global CB $ 10.20 - 0.00 0.00

Spinnaker Capital GroupOther International Funds

Global Emg Markets Ser K1 (Est) $ 106.26 - 3.16 0.00

Global Opportunity Ser K1 (Est) $ 11.37 - -85.32 0.00

Stenham Asset Management IncOther International Funds

Stenham Universal USD $ 380.93 - 3.03 -

Stenham Universal EUR € 119.72 - 0.90 -

Stenham Universal GBP £ 131.07 - 1.06 -

Stenham Universal II USD $ 143.24 - 1.08 0.00

Stenham Universal II GBP £ 140.29 - 1.07 -

Stenham Universal II EUR € 124.09 - 0.90 -

Stenham Growth USD $ 174.42 - 1.08 -

Stenham Trading Port. $ 4734.46 - 14.43 -

Stenham Quadrant USD A $ 368.65 - 0.72 -

Stenham Quadrant USD A $ 368.65 - 0.72 -

Stenham Asia EUR € 92.13 - 0.93 -

Stenham Asia GBP £ 94.40 - 1.00 -

Stenham Asia USD $ 118.09 - 1.23 -

Stenham Gold USD $ 288.93 - -7.13 -

Stenham Multi Strategy EUR € 99.89 - 0.75 -

Stenham Multi Strategy GBP £ 103.51 - 0.83 -

Stenham Multi Strategy USD $ 104.37 - 0.82 -

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 € 95.45 - 0.30 -

Stenham Managed Fund GBP £ 99.43 - 0.36 -

Stenham Managed Fund USD $ 99.81 - 0.35 -

Stratton Street Capital (CI) Limited (GSY)Regulated

Wonda Bond & Currency Fund (USD) $ 115.53 - -1.60 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$ 113.58 - 0.08 -

Renminbi Bond Fund AUD Cls B A$ 113.48 - 0.08 -

Renminbi Bond Fund CHF Cls A SFr 121.12 - 0.05 -

Renminbi Bond Fund CHF Cls B SFr 120.88 - 0.05 -

Renminbi Bond Fund CNH Cls A CNH 121.69 - 0.07 -

Renminbi Bond Fund CNH Cls B CNH 121.43 - 0.07 -

Renminbi Bond Fund Euro Cls B € 121.17 - 0.05 -

Fund Bid Offer D+/- Yield

Renminbi Bond Fund GBP Cls B £ 121.43 - 0.06 -

Renminbi Bond Fund SGD Cls B S$ 121.24 - 0.06 -

Renminbi Bond Fund USD Cls B $ 121.46 - 0.07 -

Renminbi Bond Fund YEN Cls B ¥ 12151.17 - 6.50 -

Renminbi Bond Fund USD Class $ 168.08 - 0.09 3.49

Renminbi Bond Fund GBP Class £ 162.43 - 0.09 3.52

Renminbi Bond Fund SGD Class S$ 161.18 - 0.10 3.61

Renminbi Bond Fund YEN Class ¥ 17914.00 - 12.00 0.00

Renminbi Bond Fund EUR Class € 111.92 - 0.06 3.61

Poland Geared Growth £ 0.67 - -0.05 0.00

E. I. Sturdza Strategic Management Limited(GSY)Regulated

Nippon Growth Fund Limited ¥ 55794.00 - 1373.00 0.00

Strat Evarich Japan Fd Ltd JPY ¥ 62459.00 - 5187.00 0.00

Strat Evarich Japan Fd Ltd USD $ 621.19 - 49.73 0.00

Strat Global Innovation fd Ltd EUR € 1125.01 - -18.33 0.00

Strat Global Innovation fd Ltd USD $ 1158.17 - -17.74 0.00

E.I. Sturdza Funds PLC (IRL)Regulated

Strategic China Panda Fund USD $ 1902.63 - 10.73 0.00

Strategic China Panda Fund Hedged EURO € 1869.18 - 10.97 0.00

Strategic China Panda Fund Hedged Sterling £ 1810.66 - 10.94 0.00

Strategic US Momentum and Value Fund $ 556.92 - -3.28 -

Nippon Growth (UCITS) Fund JPY Class A shares ¥ 57666.00 - 3702.00 0.00

Nippon Growth (UCITS) Fund JPY Class C Dis shares ¥ 47076.00 - 3022.00 0.00

Nippon Growth (UCITS) Fund JPY Class B Acc shares ¥ 48618.00 - 3121.00 0.00

Strategic Euro Bond Fund Distributing Class Shares € 1053.33 - 0.26 2.46

Strategic Euro Bond Fund Accumulating Class Shares € 1130.66 - 0.28 0.00

Strategic Emerging Europe Fund Hedged Euro Class € 1002.88 - 10.61 0.00

Strategic Emerging Europe Fund USD Class $ 1016.17 - 10.72 0.00

Strategic Europe Value Euro Class € 119.09 - 0.77 0.00

Strategic Global Bond USD Acc $ 1045.35 - 1.22 -

Strategic Global Bond RMB Acc $ 1041.61 - 1.47 -

The Hartford International Funds (IRL)Regulated

Gbl Govt Bond (Ex Japan) Index (GBP) £ 1528.65 - 1.85 0.00

UK Corporate Bond £ 1369.96 - 0.77 0.00

Gilt £ 1442.80 - 1.33 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 ¥ 0.82 - 0.00 0.00

Global Eq Ex Japan Index Fund (Hedge) ¥ 0.75 - 0.00 0.00

Gbl Govt Bond (Ex Japan) Index ¥ 0.94 - 0.01 0.00

Gbl Govt Bond (ex Japan) Class JP4 ¥ 0.92 - 0.01 0.00

Japan Equity Index Fund ¥ 0.55 - 0.00 0.00

Japan Equity Class JP3 ¥ 0.67 - 0.00 0.00

The National Investor (TNI)www.tni.ae

Other International Funds

UAE Blue Chip Fund AED 5.07 - -0.09 0.00

TNI Funds Ltd (BMU)

MENA Special Sits Fund $ 1035.69 - -10.36 0.00

TNI Funds Plc (Ireland)

MENA UCITS Fund $ 1020.48 - 6.43 0.00

The Nile Growth Company (LUX)Regulated

Nile Growth Fd A dis $ 27.52 - 0.89 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 € 10.17 - 0.04 1.18

Credit Select A EUR Acc € 10.88 - 0.03 0.00

European Absolute Return Fund Class A Old Euro Acc € 20.84 - 0.14 0.00

European Absolute Return Cls A New Euro Acc € 11.35 - 0.08 0.00

High Income USD Dis $ 9.32 - 0.02 8.48

High Income Cls A New USD Dis $ 7.08 - 0.01 8.48

High Income Cls A New USD Acc $ 10.77 - 0.02 0.00

Global Bd (£) GBP Dis £ 13.33 - 0.01 0.00

Global Bd (£) GBP Acc £ 15.48 - 0.01 0.00

Global Bd (€) Acc € 14.13 - 0.00 0.00

Global Bd (€) Dis € 12.43 - 0.00 0.00

Global Bd ($) Acc $ 11.85 - 0.01 0.00

Global Bd ($) Dis $ 10.40 - 0.02 0.00

Global Credit A EUR Dis € 9.75 - 0.01 1.23

Global Credit A EUR Acc € 10.66 - 0.02 0.00

Real Estate Securities Cls A GBP Acc £ 12.48 - 0.06 0.00

Real Estate Securities Cls A GBP Dist £ 11.91 - 0.06 2.57

Water & Agriculture Abs Rtn USD Acc $ 12.19 - 0.05 0.00

Water & Agriculture Abs Rtn USD Dis $ 10.77 - 0.04 0.00

Emerging Asia B USD Acc $ 8.88 - 0.02 0.00

Emerging Asia B USD Dis $ 8.87 - 0.02 0.00

Global Emerging Markets USD Acc $ 14.67 - 0.05 0.00

Global Emerging Markets USD Dist $ 46.76 - 0.18 0.22

Global High Yield A Euro Acc € 10.72 - 0.01 0.00

Global High Yield A Euro Dis € 10.18 - 0.01 3.16

Global Emerging Mkt Abs Rtn A USD Acc $ 8.91 - 0.03 0.00

Global Emerging Mkt Abs Rtn B USD Acc $ 9.01 - 0.03 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 £ 11.15 - 0.02 4.82

Property Growth & Inc Cls A GBP Acc £ 14.98 - 0.03 0.00

Africa Focus Class A USD (Final) $ 1119.23 - -23.14 0.00

Isis Cls A $ 7775.16 - 33.89 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 € 226.51 - 2.33 0.00

International B $ 293.05 - 3.11 0.00

International C £ 100.59 - 1.06 3.09

Pacific A € 260.07 - 0.44 0.00

Pacific B $ 329.44 - 0.63 0.00

TreeTop Global Sicav

Global Opp.A € 110.59 - 0.38 0.00

Global Opp.B $ 116.64 - 0.54 0.00

Global Opp.C £ 140.91 - 0.47 0.00

Sequoia Equity A € 98.74 - 1.39 0.00

Sequoia Equity B $ 107.34 - 1.71 0.00

Sequoia Equity C £ 119.98 - 1.75 0.00

Sequoia Pacific Equity A € 60.62 - 0.17 0.00

Sequoia Pacific Equity B $ 67.34 - 0.26 0.00

Sequoia Pacific Equity C £ 81.43 - 0.19 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 $ 477.71 - -3.30 0.00

UBS (CH) Equity Fund - Energy (USD) P $ 300.96 - 0.17 0.15

UBS Global Emerging Market Value Focus P USD $ 114.92 - 1.80 0.00

UBS (Lux) Bond Fund - Convert Europe P-acc € 136.35 - 0.59 0.00

UBS (Lux) Bond Fund - Euro High Yield P-acc € 156.31 - 0.29 0.00

UBS (Lux) Bond Fund - Full Cycle Asian Bond (USD) P-acc $ 122.17 - -0.12 0.00

UBS (Lux) Bond SICAV - Asian Local Currency Bond (USD) P-acc $ 104.29 - -0.03 0.00

UBS (Lux) Bond SICAV - Convert Global (EUR) P-acc € 10.78 - 0.02 0.00

UBS (Lux) Bond SICAV - Short Duration High Yield (USD) P-acc $ 108.16 - 0.02 0.00

UBS (Lux) Bond SICAV - USD High Yield P-acc $ 230.35 - 0.20 0.00

UBS (Lux) Emerging Economies Fund - Global Bonds (USD) P-acc $ 1921.02 - 3.54 0.00

UBS (Lux) Emerging Economies Fund - Global Short Term (USD) P-acc $ 2993.60 - 4.85 0.00

UBS (Lux) Equity Fund - Asian Consumption (USD) P-acc $ 107.59 - -0.38 0.00

UBS (Lux) Equity Fund - Greater China (USD) P-acc $ 196.11 - -0.21 0.00

UBS (Lux) Equity Fund - Health Care (USD) P-acc $ 138.86 - -0.51 0.00

UBS (Lux) Equity SICAV - Russia (USD) P-acc $ 109.87 - 0.18 0.00

UBS (Lux) Equity SICAV - USA Growth (USD) P-acc $ 17.43 - -0.13 0.00

UBS (Lux) Key Selection SICAV - Global Allocation Focus Europe (EUR) P-acc € 9.89 - 0.06 0.00

UBS (Lux) SICAV 1 - All Rounder (USD) P-acc $ 141.35 - 0.01 0.00

Pls contact your adviser for funds in other currencies or for add.

UOB Global Strategies Funds Plc (IRL)Regulated

UOB Asian Equity $ 213.72 - 0.91 0.00

UOB Greater China $ 228.91 - 1.04 0.00

UOB Paradigm Fund Class A (Eur) € 148.76 - 0.00 0.00

UOB Paradigm Fund Class B (USD) $ 186.33 - 0.02 0.00

UOB Paradigm Fund Class C $ 120.00 - 0.01 0.00

UOB Paradigm Fund Class D $ 117.42 - 0.02 0.00

UOB US Equity Fund $ 156.73 - 0.05 0.00

UOB Global Opportunities Fund $ 110.80 - 0.40 0.00

UOB Strategic Allocation Fund USD $ 101.92 - -0.27 0.00

Unicapital Investments (LUX)Regulated

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 $ 10.92 - 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 $ 256.59 - -0.47 1.14

Veritas Asian Fund A GBP H £ 295.24 - 0.07 1.15

Veritas Asian Fund A EUR H € 225.25 - -0.15 1.18

Veritas China Fund A USD $ 108.17 - -0.07 0.63

Veritas China Fund A GBP £ 109.87 - -0.07 0.00

Veritas China Fund A EUR € 107.48 - -0.07 0.45

Veritas Global Equity Income Fund D USD $ 129.30 - -0.14 -

Veritas Global Equity Income Fund D EUR € 188.90 - 0.03 -

Veritas Global Equity Income Fund D GBP £ 154.67 - 0.15 -

Veritas Global Focus Fund D USD $ 20.24 - -0.07 -

Veritas Global Focus Fund D EUR € 15.36 - -0.03 -

Veritas Global Focus Fund D GBP £ 21.07 - -0.03 -

Veritas Global Focus Fund A GBP £ 20.36 - -0.03 1.48

Veritas Global Focus Fund A EUR € 8.94 - -0.02 1.56

Veritas Global Focus Fund A USD $ 19.48 - -0.07 1.50

Veritas Global Focus Fund C GBP £ 21.13 - -0.02 0.00

Veritas Global Focus Fund C EUR € 15.45 - -0.03 0.00

Veritas Global Focus Fund C USD $ 20.30 - -0.06 0.00

Veritas Global Equity Income Fund A GBP £ 149.35 - 0.15 4.51

Veritas Global Equity Income Fund A EUR € 185.10 - 0.03 4.51

Veritas Global Equity Income Fund A USD $ 125.29 - -0.13 4.53

Veritas Global Equity Income Fund C GBP £ 156.50 - 0.16 -

Veritas Global Equity Income Fund C EUR € 194.05 - 0.03 -

Veritas Global Equity Income Fund C USD $ 130.75 - -0.14 -

Veritas Global Real Return Fund A USD $ 17.50 - -0.01 0.97

Veritas Global Real Return Fund A GBP £ 9.54 - 0.00 0.83

Veritas Global Real Return Fund A EUR € 4.97 - -0.39 0.00

Retail

Veritas Asian Fund B USD $ 181.15 - -0.33 0.70

Veritas Asian Fund B GBP £ 217.06 - 0.05 0.35

Veritas Asian Fund B EUR € 165.00 - -0.11 0.67

Veritas China Fund B USD $ 114.29 - -0.08 0.00

Veritas China Fund B GBP £ 106.62 - -0.07 0.14

Veritas China Fund B EUR € 108.14 - -0.07 0.00

Veritas Global Focus Fund B USD $ 14.11 - -0.05 0.91

Veritas Global Focus Fund B GBP £ 15.58 - -0.02 0.92

Veritas Global Focus Fund B EUR € 10.67 - -0.02 1.88

Veritas Global Equity Income Fund B GBP £ 139.54 - 0.14 4.53

Veritas Global Equity Income Fund B EUR € 172.46 - 0.02 4.53

Veritas Global Equity Income Fund B USD $ 126.22 - -0.13 4.55

Veritas Global Real Return Fund B USD $ 16.97 - -0.01 0.59

Veritas Global Real Return Fund B GBP £ 9.45 - 0.00 0.47

Veritas Global Real Return Fund B EUR € 11.11 - 0.00 0.42

Veritas Asset Management (UK) Limitedwww.veritas-asset.com

Other International Funds

Real Return Asian Fund USD (Est) € 238.23 - 0.94 0.00

Real Return Asian Fund GBP (Est) £ 252.44 - -1.96 0.00

Real Return Asian Fund EUR (Est) $ 247.99 - 0.91 0.00

Victory Capital LtdOther International Funds

Victory Capital Ltd A GBP (Est) £ 132.00 - -0.50 -

Waverton Investment Funds Plc (1600)F (IRL)waverton.investments@citi.comFSA Recognised

Asia Pacific B USD $ 18.05 - 0.03 0.94

European Fund B Eur H € 9.26 - 0.03 1.03

Global Bond Fund Cls A $ 9.90 - -0.01 4.75

Global Equity Fund B GBP H £ 5.43 - 0.00 0.00

JOHIM Equity Fund GBP £ 11.19 - 0.06 0.00

JOHIM Sterling Bond Fund A GBP £ 10.24 - 0.00 4.99

Waverton Abs. Fund GBP £ 9.95 - 0.00 0.32

UK Fund B GBP H £ 10.50 - 0.00 2.62

WA Fixed Income Fund Plc (IRL)Regulated

European Multi-Sector € 114.03 - 0.13 0.00

Williams de Broë Assetmaster Fund Plc (IRL)Comore Plaza, Colmore Circus, Birmingham, B4 6AT 0044 121 2320726FSA Recognised

Assetmaster Growth Fund £ 1.65 - 0.01 0.00

Assetmaster Cautious Fund £ 1.39 - 0.00 0.00

Assetmaster Balanced Fund £ 1.38 - 0.00 0.00

Assetmaster Intl Growth Fund £ 1.60 - 0.00 0.00

Multi Strategy Fund H £ 1.81 - 0.02 0.00

Chameleon Capital H £ 1.13 - 0.01 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 £ 2.17 - 0.02 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 ¥ 3675.00 - -5.00 0.00

Yuki Mizuho Japan Dynamic Growth ¥ 3625.00 - -10.00 0.00

Yuki Mizuho Japan General ¥ 7457.00 - -5.00 0.00

Yuki Mizuho Japan Excellent 100 ¥ 5964.00 - -7.00 0.00

Yuki Mizuho Japan Growth ¥ 5233.00 - -19.00 0.00

Yuki Mizuho Japan Income ¥ 6776.00 - -20.00 0.00

Yuki Mizuho Japan Large Cap ¥ 4263.00 - -15.00 0.00

Yuki Mizuho Japan Low Price ¥ 9934.00 - -130.00 0.00

Yuki Mizuho Japan Pure Gwth ¥ 6051.00 - -10.00 0.00

Yuki Mizuho Japan Small Cap ¥ 6645.00 - 6.00 0.00

Yuki Mizuho Japan Value Select ¥ 5002.00 - 1.00 0.00

YMR Umbrella Fund

YMR N Growth ¥ 8371.00 - -21.00 0.00

Yuki Chugoku Umbrella Fund

Yuki Chugoku Japan General ¥ 6244.00 - -28.00 0.00

Yuki Chugoku Japan Low Price ¥ 6082.00 - -11.00 0.00

Yuki 77 Umbrella Fund

Yuki 77 General ¥ 5087.00 - -7.00 0.00

Yuki Hokuyo Umbrella Fund

Yuki Hokuyo Japan General ¥ 3982.00 - -4.00 0.00

Yuki Hokuyo Japan Income ¥ 4598.00 - -9.00 0.00

Yuki Hokuyo Japan Small Cap Fund ¥ 5068.00 - 2.00 0.00

Yuki Asia Umbrella Fund

Yuki Japan Rebounding Growth Fund ¥ 8891.00 - -4.00 0.00

Zadig Gestion (Memnon Fund) (LUX)FSA Recognised

Memnon European Fund I GBP £ 104.54 - 0.92 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.

The fund prices published in this editionalong with additional information are alsoavailable on the Financial Times website,www.ft.com/funds. The funds published onthese pages are grouped together by fundmanagement company.

Prices are in pence unless otherwiseindicated. The change, if shown, is the changeon the previously quoted figure (not all fundsupdate prices daily). Those designated $ withno prefix refer to US dollars. Yield percentagefigures (in Tuesday to Saturday papers) allowfor buying expenses. Prices of certain olderinsurance linked plans might be subject tocapital gains tax on sales.

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.

Single price: Based on a mid­marketvaluation of the underlying investments. Thebuying and selling price for shares of an OEICand units of a single priced unit trust are thesame.

Treatment of manager’s periodic capitalcharge: The letter C denotes that the trustdeducts all or part of the manager’s/operator’speriodic charge from capital, contact themanager/operator for full details of the effect ofthis course of action.

Exit Charges: The letter E denotes that anexit charge may be made when you sell units,contact the manager/operator for full details.

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 21 2012 Section:Stats Time: 20/12/2012 - 19:28 User: sheehanr Page Name: UT6 EUR, Part,Page,Edition: EUR, 21, 1

22 ★ FINANCIAL TIMES FRIDAY DECEMBER 21 2012

American and British Stocks 52 week VolStock Price Chng High Low Yld P/e ’000s

UK (Dec 20/Pence)3i 220xd -.1 254.82 166.10 3.7 - 2818AberAsM 365.20xd +6.8 370.44 196.10 3.1 19.4 6913ABG 434 -8.4 535 301.40 2.7 13.3 291Admiral 1.19k -6 1.22k 764.99 6.8 13.9 426Aegis 234.80 -.1 238.40 133.70 1.4 25.4 3283Aggreko 1.74k +42 2.42k 1.63k 1.3 16.5 2061Alliance 382.20xd -1.6 383.80 328.50 2.2 40.3 551AMEC 1.02kxd -7 1.19k 858.50 3.1 14.1 2179Amlin 387.70 -1 408.30 307.60 6 11.2 1218AngloAmer @ 1.89k -6.5 2.96k 1.66k 2.8 9.2 3206Antofagsta @ 1.35k -17 1.4k 972 2 14.5 2261ARM 782.50 +7.5 784 463.60 0.5 69.9 6908AscBrFd 1.57kxd -2 1.58k 1.08k 1.8 19.9 1767Ashmore 361.90 +3.9 406 300.30 4.1 13.4 1038AstraZen @ 2.93k -16 3.12k 2.58k 6.7 8.2 1785Aviva 384 +3.2 385.10 251.10 6.8 - 12455Babcock 987xd -.5 1.01k 695 2.4 18.9 849BAE SYS 348 +6.1 367.50 266.30 5.5 8.4 8126BalfourB 274.70 +6.3 321.45 234.60 5.1 10.9 2228Barclays @ 266.80 +.25 288 148.20 2.2 8.4 49536Berkeley 1.78k +14 1.78k 1.17k 0.8 14.6 376BG @ 1.01k -14.5 1.55k 991 1.6 15.6 14706BHP Bltn 2.15k +3.5 2.24k 1.62k 3.6 13.1 6762BlckRckWld 589 +1 750.44 524 1.2 27.7 186Booker Grp 98.50 +.95 105.50 70.25 2.4 20.7 2347BP @ 430.10xd -1.2 554 359.90 4.9 6.7 27762BrAmTob @ 3.11k +15 3.51k 2.88k 4.2 17.9 6480BritLand 570 +2.5 571 445.90 35764.4 19.8 2191BSkyB @ 780 +8 787 628.76 3.3 14.9 2690BT @ 242.40 +1.3 242.81 185.50 3.6 8.8 24817Bumi 273.30 +4.7 941 119.54 - - 206Bunzl 1.01kxd -6 1.17k 837 2.7 16.5 1678Burberry 1.25kxd -2 1.61k 998 2.1 22.9 1094bwin.party 114.70 +1 177 91.05 2.9 10 2403CairnEng 261.80 -4.5 364.90 245.20 - - 3682Cap&Count 249.30 +1 250.60 170 0.6 10.7 1159Capita 778.50 +2 788 600 2.8 18.6 2140CapShopCn 361.70 +.7 363.30 289.60 3.7 - 912Carillion 318.70 +4.7 348 232.17 5.3 9.4 1189Carnival 2.39kxd -154 2.6k 1.58k 4.3 18.9 4586CatlinGrp 501 +1 502.14 376.20 5.1 5 675Centrica @ 340 -.4 342 248.40 4.6 15.5 9526Cobham 222.50 +1 242.70 167.60 3.9 14.5 2459Compass @ 742.50 +8.5 748.34 578.50 2.9 22.6 4774CRH 1.25k +25 1.88k 1.05k 4.1 18.8 2537Croda 2.4k +15 2.5k 1.71k 2.4 19 557Daily Mail 553xd +5.5 554.50 361.40 3.3 18.5 314Diageo @ 1.85k +10 1.89k 1.23k 2.4 24.9 4279Drax Group 558.50 -8.5 584 390 4.7 4.5 1040DrwntLdn 2.13k +9 2.15k 1.51k 1.3 - 216easyJet 772.50 - 776 377.03 2.8 14.7 1496ENRC 280.80 -.2 759 259.60 4.3 4.6 4262EssarEngy 123 -1.1 188.05 98.13 - - 920EVRAZ 267 -11.4 465.40 206.80 2.8 32.4 4811Experian 999 -7 1.1k 819 2 24.1 4168Ferrexpo 249.50 -8.4 370 138.70 1.6 5.6 2988FirstGrp 203.80 -.9 344 174.60 11.6 6.4 3248For & Col 320.90 -.7 321.60 275.17 1.9 45.4 384Fresnillo @ 1.88k -33 2.03k 1.26k 3.5 28 973G4S 260.40 -.4 293.40 237.30 3.3 27.6 4496GKN 229.30 +2.2 242.10 169.20 2.8 10.6 10674GlaxoSmh @ 1.35kxd -1.5 1.56k 1.31k 5.3 14.3 10204Glencore @ 349.65 -3 484 289.35 2.7 11.4 10307Halma 456.40 +1.6 459.30 324.08 2.2 18.6 854Hammersn 494.60 +2.7 496.30 339.20 2.8 28.6 2158Hargr Lans 693.50 -2.5 785.48 404.72 3.3 28.7 811HikmaPhm 751 +7 785 598.50 1.2 25.8 327Hiscox 466 -2 497 359.20 3.8 9.3 355Hochschild 481 -3.6 543.76 364.74 0.9 26.6 145HSBC @ 650 -3 654.30 474 4.3 16.4 37012Hunting 781.50 +14 977 680.50 2 19.9 599IAG 186 -2.5 219.34 136 - - 3370ICAP 312.60 +.6 431.67 272.80 7.2 11.4 2800IG Group 453.60 +1.7 505 413.80 5 12 1082ImgnTech 411.50 -3.5 734 378.34 - 59.5 580IMI 1.1k -7 1.11k 711 2.8 16.5 1287ImpTob @ 2.4k - 2.63k 2.21k 4.4 12.5 3350Inchcape 438.30 -1.4 452.10 276.20 2.6 12.6 941Informa 451 -4.2 456.50 330.70 3.9 42.5 3312Inmarsat 593 -3 613.14 361.68 4.8 11.8 753InterC Htls 1.71kxa +51 1.76k 1.06k 8.7 22.1 1300Intertek 3.14k +8 3.18k 1.89k 1.1 29.7 437Invensys 324.70xd -1.2 329.30 166.80 1.4 21.2 2804Investec 421.30xd +6.2 424.20 308.90 4 15.1 2209ITV 107 +3.2 107.10 60.60 1.9 15.3 24329JardineL 760.50 -9.5 798.50 640.50 3.2 18.1 116JohnsoM 2.41kxd -1 2.58k 1.75k 6.5 16.1 273Kazakhmys 766.50 -6 1.22k 569 2.1 7.7 1677Kenmr 31.75 -.25 62.55 29 - 15.6 3304Kingfshr 283.30 +4.8 317 235.68 3.3 11.1 6765Ladbrokes 201.40 +1.5 202.40 120 4.1 10.1 2912LandSecs 823.50xd +4.5 828 608 2.9 23.8 1971Leg&Gen 147.90 +1.8 149.38 97.75 4.5 11.2 18978LlydsBkg @ 49.25 +.05 49.83 22.86 - 16.9 183821Lonmin 289.50 -3.1 607.43 226.96 - 14.4 4369LSE 1.1kxd -6 1.12k 769.50 2.6 5.7 1406Man 86.50 +3 152.91 61.10 13 19.5 26821Marks&Sp 396.30xd -2.5 399.69 301.50 4.3 11.9 6915Meggitt 393.60 -1.3 416.60 336.20 2.8 15.6 1722MelroseInd 231.70xr -2.4 261.50 180.62 3.2 24 3023Mlnm&Cth 511.50 +1 520 378.09 3.2 8.8 267Mondi 677 +11 683.50 429.50 3.6 13.7 1334Morrison 264.60 -.7 339.70 255.20 4.2 9.4 10266Natl Grid @ 702xd -9 724.97 590 5.7 11.3 10283NewWldRes 294.90 -13.6 571 219.45 3.6 - 139Next 3.73kxd -41 3.78k 2.55k 2.5 13.5 915Old Mutl 179.50 - 181.69 135.38 3.2 18.9 9933Pearson 1.2k +1 1.3k 1.1k 3.6 18.9 4031Pennon 636 +1 797 589 4.3 13.4 3582

Persimn 820 +8 828.37 442.58 1.2 17.3 1572Petrofac 1.66k +1 1.78k 1.32k 2.2 16.3 711Petropvlsk 354.40 -7.4 826.66 286.60 3.4 5.7 2077PolymtIntl 1.16kxa -21 1.2k 726.70 2.9 24.6 225PremOil 321.90 -.1 452.70 318.20 - 6.6 1796Providnt 1.39k +15 1.46k 908.50 5.1 14.5 212Prudential @ 895.50 +5.5 916.50 600.50 2.9 14.8 8690PZ Cusns 366.40 +1.6 371.60 282.49 1.8 28.1 427RBS @ 317.70 +2.3 319.64 185.08 - - 12108ReckittB @ 3.91k -56 4k 3.11k 3.2 16.6 1789Reed Els @ 643.50 +1.5 662.50 466.10 3.4 23.5 3676Rentokil 95.85 -.3 97.15 58.65 2.1 18.5 4651Resolution 256.90 +1.5 287.10 189.80 8 16.8 1267REXAM 441.90 -3.1 463.90 335.70 3.3 14.4 2754Rightmove 1.46k +11 1.71k 1.19k 1.4 27.8 324RioTinto @ 3.5k -11.5 4.03k 2.65k 3 7.9 6816RIT Cap 1.15k +4 1.32k 1.08k - - 260RndgldRs 5.97k -140 7.89k 4.48k 0.4 22.4 510RollsRyc @ 883 -.5 922.14 689.20 1.8 13.6 5971Rotork 2.56k -4 2.57k 1.75k 1.5 25.8 145RSA Ins 127.40 +.6 128 97 7.2 14.7 16710RylDShlA @ 2.14k - 2.81k 1.95k 4.6 16 2786RylDShlB 2.2k - 2.93k 2.02k 4.8 16.5 3498SABMiller @ 2.85k +12 2.89k 2.14k 2.2 23.2 3617Sage 296 +1.5 326.30 245.30 3.4 15.9 6044Sainsbry 352.90xd -.3 362.20 278.60 4.6 12.6 6139SchrdrsNV 1.37k -5 1.37k 950 2.9 12.9 26Schroders 1.71k +10 1.71k 1.16k 2.3 16.1 294ScottMort 753 -4 757 560.06 1.8 51 221SEGRO 248.90 +3.7 260.20 193.90 5.4 9.7 2279Serco 544.50 +.5 606 456.90 1.6 16.5 602SevernTr 1.57kxd -7 1.84k 1.4k 4.6 14.6 865Shaftbry 562 +.5 568 455.50 1.7 15.5 354Shire 1.93k +5 2.32k 1.68k 0.5 19 2054SmithNph 683.50 -2 726.50 567.50 2.1 13.7 1295Smiths 1.18k -3 1.19k 875 3.2 19.3 1515Spectris 2.05k +13 2.06k 1.19k 1.9 18.3 342Spirax-S 2.26k -8 2.36k 1.75k 2.2 20.1 110SportsDirect 380.90 -.6 417.46 203.90 - 16.9 138SSE @ 1.45k +4 1.47k 1.2k 5.6 20.1 2236St Jms Pl 421.40 -1.2 427.10 301 2.1 19.8 215Stagech 311.80 -2.5 315.15 227.90 2.6 9.3 801StandardLf 338.10 -2 341.08 193.94 4.2 22.6 6347StandCh @ 1.58k +15.5 1.66k 1.09k 3.4 12.3 10108TalkTalk 230.40 -1.6 234.50 118.90 4.3 22.2 650Tate&Lyl 777xd +3.5 780 621.95 3.2 18.2 1344Taylor Wmpy 66.65 +.7 67 34.41 0.9 11.8 11097TelecityG 775.50 -24.5 963.50 617 0.3 30 3518TemptnEm 577.50 - 635.50 502.50 1 66.9 308Tesco @ 338.60xd -1.65 412 294.50 4.4 11.3 25460TravisPkn 1.09k +3 1.15k 749 2 10.7 643TUI Travel 289 +2.5 293.60 152.50 4 13.9 4123Tullow @ 1.25k +18 1.61k 1.1k 1 25.8 4828UBM 730.50 -4.5 758.50 444.89 3.7 22.1 819Unilever 2.42k -5 2.44k 1.98k 3.2 20.7 3074UtdUtils 674xd -14 816 583.50 4.9 13.8 5787Vedanta 1.16k - 1.56k 820.52 3.3 38.9 807Vesuvius 352 +28 377.50 233.70 4.8 5.8 581Vodafone @ 155.80xd -.85 191.94 154.82 5.8 17.5 86474Weir 1.86k +51 2.24k 1.35k 1.8 13 2268Whitbrd 2.52kxd +39 2.56k 1.51k 2.1 16.8 829Willim H 356.40 +5.9 360.50 182.60 2.8 13.9 4322Wolseley 2.9kxa +22 2.93k 1.93k 6.4 18.2 877Wood (J) 747 +7 883.50 619.50 1.4 27.1 3310WPP 892 +9 892.50 585.90 2.9 12.7 4366Xstrata @ 1.04k -7 1.29k 767.70 2.4 9.9 6434

NYSE (Dec 20 / 1:00 pm/US$)3M @ 93.74 +.72 95.46 77.52 2.5 15 198AbbottLb @ 65.28 - 72.47 53.96 2.6 15.9 405Accenture @ 68.51 -1.89 71.58 51.08 2.2 17.4 994ACE @ 81.35 +.36 82.07 66.26 2 10.4 75AdvMicroD 2.45 -.07 8.34 1.81 - - 1573AEP @ 43.56 +.05 45.40 36.98 4.3 14.6 104AES Corp 10.91 - 14.01 9.53 0.4 - 207Aetna 46.72 +.72 51.14 34.61 1.6 8.9 252AFLAC @ 54.36 -.02 54.93 38.14 2.5 9 209AgilentTec 41.21 +.62 46.28 33.14 1 12.6 362AGL Res 40.79 +.64 43 36.59 4.5 22 64Airgas 91.40xd +.59 92.99 75.84 1.7 21.5 70AirProd 84.28 +.51 92.78 76.15 3 18.1 73Alcoa 8.65 +.01 10.92 7.97 1.4 - 993Allergan @ 92.55 -.03 97.09 81.28 0.2 27 90Allstate @ 41.05xd +.24 42.81 26.02 2.1 7.8 213Altria @ 32.49 +.1 36.29 28 5.2 16.9 1096Amer Intl @ 35.26 +.37 37.66 22.20 23.8 2.4 1249Ameren Cp 31.13xd +1.08 34.84 28.44 5.1 37.1 495AmerExpr @ 56.96 +.17 61.42 45.89 1.4 13.2 567Amerip Fin 63.16 +.25 63.75 45.17 2.3 16.9 97Amertitrad 16.75xd -.14 20.59 14.87 4.6 15.8 262AmerTwrA @ 77.05xd +.92 77.12 56.99 1.6 43.6 148AmsrceBrgn 43.69 +.04 44.01 35.48 1.4 15.8 152Anadarko @ 75.43xd +.98 88.68 56.42 0.5 20.8 204AOL 30.28 -.46 37.90 12.10 17 2.8 149Aon Cp 56.56 -.03 57.91 44.44 1.1 19.7 137Apache @ 79.77 -.11 112.08 74.50 0.9 12.8 276ArcherDan @ 27.90 +.01 33.98 24.38 2.5 19.6 359AT&T @ 33.97 +.06 38.58 28.65 5.2 44.1 1279AutoZone 356.51 -2.97 399.10 313.26 - 14.7 73AvalnbyCom 134.02 +.62 151.11 123.71 2.9 51.6 112AvonProds 14.55 -.14 23.57 13.71 5.2 54.1 293BakerHu @ 41.09 -.03 52.96 37.09 1.5 13.1 425Ball 45.11 +.54 45.24 34.37 0.9 17 124BankAm @ 11.37xd +.18 11.49 4.92 0.4 31.8 10822Bard (C R) 98.12 +.19 108.30 82.54 0.8 16.5 30Baxter @ 67.14xd +.74 68.91 47.56 2.3 16.3 193BB & T @ 29.39 -.12 34.37 23.45 2.7 11.6 258Beam 61.26 +.1 64 48.70 1.3 26.7 55BectonDick 79.02xd +.49 80.56 70.50 2.3 14.8 78

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 @ 135.78k +580 136.34k 110.74k - 16.8 BerkHB 90.52 +.42 90.92 73.75 - 16.9 536Best Buy 12xd +.12 27.95 11.42 5.5 - 603BkNYMeln @ 26.05 +.18 26.24 18.45 2 13.5 322BlackRock @ 207.55xd +1.74 208.81 160.25 2.9 16.1 40Blackstone 15.17 -.11 17.25 11.13 3.4 - 170Block 18.95xd -.09 19.32 14.36 4.2 15.2 261Boeing @ 75.82 +.31 77.83 66.84 2.4 13.4 319BorgWrnr 68.16 +.2 87.40 60.18 0.5 16.5 76BostonPrp 106.03 +.83 117 94.92 2.2 54.2 75BostonSci 5.79 +.05 6.41 4.79 - - 633BrisMySq @ 32.54 -.03 36.34 30.64 4.2 29.7 386Brwn-FmnB 63.40xa +.19 66.86 48.53 1.5 24.4 22Cameron 56.26 -.34 59.99 38.38 - 22.1 251Campbell 35.58xd -.4 37.16 31.22 4.1 15.1 220CapOne @ 58.48 -.24 61.83 41.28 0.3 9.6 490CardinalH 41.94 -.07 44.49 36.93 2.3 13.2 107Carefsn 28.88 +.4 28.98 22.55 - 17.5 113Carmax 37.75 +2.91 38.24 24.84 - 21.3 604Carnival @ 36.84xd -2.2 39.95 28.76 4.1 20.2 1649Caterpillar @ 89.12xd -1.67 116.95 78.25 2.3 9.1 498CBRE Gp 20.01 +.05 21.15 14.18 - 30.1 106CBS @ 37.16xd +.73 38.32 24.49 1.2 16 861Centrpnt 19.66 -.06 21.81 18.08 4.1 21.1 195CenturyLk @ 39.52xd -.23 43.43 34.82 7.3 37.7 211CharlesSch 14.31 -.16 15.53 10.73 1.7 21.3 693ChesapEgy 17.33 +.13 26.09 13.32 2 - 599Chevron @ 109.90 +.01 118.50 95.74 3.2 9 449ChipMexG 287.15 -1.74 442.34 234 - 33.4 23Chubb @ 75.82xd +.33 81.80 66.38 2.2 11 130Cigna 53.82 +.15 54.53 39.34 0.1 10.3 92Citigroup @ 39.73 +.28 40.11 24.41 0.1 16.7 3184Cliff sNat 35.51 -.34 78.85 28.05 6.1 5.5 521Clorox 75.22 -.29 76.73 64.91 3.4 18.2 39CMS Egy 24.50 -.06 24.98 20.67 3.9 18.8 150CNA Fin 28.22 +.02 31.50 25.61 2.1 9.2 4CnstelBdA 35.93 +.49 36.98 18.50 - 17.8 95Coach 58.19xd -.97 79.64 48.24 1.9 16.3 327Coca Cola @ 36.77xc -.01 40.66 33.29 2.8 19.2 1148CocaCoEnt 31.74 -.01 32.54 25.10 2 14 276ColgPalm @ 105.79 -.24 110.95 87.22 2.3 20.7 80Comerica 30.18xd +.02 34 24.03 1.8 12.2 85CompSci 39.77 -.28 40.58 22.19 2 - 85ConagraFds 30.22 +.26 30.80 23.64 3.2 20 389ConocPhil @ 58.74 -.46 59.67 50.63 4.5 10.6 533ConsEdsn 33.41xd -.62 39.51 26.42 1.5 17.7 176ConsolEd 56.38 -.02 65.98 53.63 4.3 14.8 149Corning @ 12.78 +.01 14.62 10.62 2.5 10.1 644CoventryHlt 44.79xd +.35 44.95 27.72 1.1 13.9 49Covidien @ 57.80xd +.28 60.80 42.70 1.7 14.8 108CSX @ 20.10 +.09 23.71 18.88 2.7 11.2 527Cummins @ 107.79 -.16 129.51 82.20 1.7 11.3 148CVS @ 48.84 +.09 49.76 36.44 1.5 16.4 425Danaher @ 56.19xd +.52 57.15 46.03 0.2 17.9 198DardenR 45.35 -1.46 57.88 43.06 4.1 12.4 203Davita 112.07 +1.2 116.47 72.90 - 20.3 86Deere @ 86.15 +.06 89.69 69.51 2.1 11.3 192

DenburyRs 16.30 +.05 21.36 13.14 - 13.8 121DevonEngy @ 53.76xd -.01 76.33 51.49 1.5 31.9 275DiamOfsh 69.89 +.3 73.35 52.98 5 12.9 78DiscvrFin 37.62 -2.15 42.08 23.50 1.1 8.7 1664Disney @ 50.50xd +.56 53.40 34.52 1.5 16.2 722DominRes @ 52.03 +.23 55.62 48.87 4.1 25.2 216Dover 64.67 -.25 67.20 50.29 2.1 14 98DowChem @ 32.18xd -.25 36.08 25.62 3.8 24.8 632DrPepper 44.72xd +.24 46.06 36.53 3 15.3 68DTE Engy 60.92xd +.02 62.54 51.87 4 15.3 41DukeEner @ 64.60xa -.15 70.35 59.63 4.7 20.5 175DuPont @ 45.03 +.18 53.98 41.68 3.8 14.2 340Eaton 54.35 +.23 54.72 36.38 2.8 13.2 178Ecolab @ 71.86xd +.06 72.78 54.04 1.2 37.3 77EdsnInt 45.75 +.21 47.96 38.87 2.8 - 129EdwLifesc 92.42 +.42 110.79 67.05 - 41.3 30EMC @ 25.78 -.13 30 21.26 - 21.1 795Emerson @ 53.01 -.17 53.78 43.59 3 19.8 264Entergy 64.03 -.23 73.97 61.56 5.2 16.2 82EntPrdPrt 50.28 +.2 55.38 44.73 5 17.7 87EOG Res @ 123.51 +1.06 124.49 82.49 0.6 27.9 93EqResPrp 56.03xd +.64 65.72 53.25 3.2 - 120EQT 59.64 +2.63 62.74 43.70 1.5 39.6 423EsteeLdrA 59.50 -.84 65.53 49.81 1.2 26.8 142Exelon @ 29.81 -.31 43.83 28.40 6.6 15.9 454ExxonMob @ 88.26 -.12 93.60 77.13 2.5 9.3 1068Fedex @ 92.47 -.73 97.19 80.92 0.6 14.4 361FidltyNFn 23.57xd +.54 24.27 15.17 2.5 9.8 254FirstEgy @ 41.38 -.12 51.13 40.37 5.3 16.4 202Flowsrve 145.40 +.45 146.20 96.16 1 18.2 14Fluor 59.08xd +.29 64.65 44.99 1.1 16.3 143FMC Tech 42.47 +.5 55.17 36.89 - 25.1 84Ford @ 11.63 -.1 13.05 8.82 1.7 2.6 3229ForestLabs 35.57 +.03 37.69 28.69 - 17.4 118Franklin @ 129.10xd +.29 130.85 90 3.2 14.4 40Freeport @ 33.57 -.38 48.96 30.55 3.5 10.9 1018GAP 31.62 -.54 37.85 17.72 1.6 15.5 747GenDyn @ 69.50xd -.02 74.49 61.09 2.9 10.2 154GenElectr @ 21.10xd +.09 23.18 16.79 3.3 15.7 3886GenMills @ 41.52 +.25 41.87 36.75 3.1 15.3 321GenMot @ 27.09 -.09 27.90 18.72 2.8 10.2 1156GenuineP 64.25xd +.25 66.88 55.58 3.1 16.2 47GoldmSchs @ 128.76xd +1.57 129.25 86.90 1.4 12.4 310Grainger 196.58 -1.37 221.79 172.63 1.6 20.9 35Halliburton @ 34.89xd +.28 39.19 26.29 1 11.2 727HarleyDavid 48.68xd -.05 54.31 36.23 1.3 18.5 70Harris 49.88 -.22 52.22 33.76 2.8 42.2 68Hartford 22.59xd +.07 23.28 14.95 1.8 15.7 181HCP @ 44.88 +.37 47.64 37.81 4.5 30.1 183Heinz @ 59.31xd +.27 60 51.36 3.4 18.6 140Helm&Pyn 56.41 +.16 68.60 38.71 0.6 10.7 86Hershey 73.73 +.07 74.66 59.32 2.1 25.8 59Hess @ 53.34xd +.3 67.85 39.67 0.7 11.9 130Hew-Pack @ 14.23xd -.15 30 11.35 3.6 - 1263Hillshire 28.32 +.1 30.38 24.31 8.1 - 54HlthCare 59.75 +.59 62.79 51.38 5 - 92HomeDep @ 61.36 -.41 65.92 40.11 1.9 21.7 639

Honywell @ 64.22 +.45 64.48 52.10 2.4 21.5 350HormelFd 31.30 -.03 31.62 27.28 2 16.8 109HortonDR 20.07xd +.12 22.78 11.72 1.3 7.4 432Hospira 32.30 +.24 38.48 28.29 - - 71Host H&R 15.77 +.21 17.57 13.61 1.9 - 522Humana 68.46 +.65 96.45 59.92 1.5 9.2 99IBM @ 193.75 -1.33 211.76 177.35 1.7 13.9 297IllinoisTool @ 61.48xd +.09 63.32 45.49 2.4 15 94IngersollR 48.66xd +.18 50.03 29.69 1.3 14.7 112Int.Paper 39.65 +.75 39.65 27.26 2.7 21.5 239Intercont 127.54 -.77 142.75 110.67 - 17 1018Interpubl. 11.34 +.13 12.17 8.98 2.1 16.1 218IntlFl&Fr 66.99xd +.16 67.25 51.21 1.9 26.2 27IntlGmeT 14.22xd -.02 18.10 10.92 1.8 16.3 163INVESCO 26.14 +.06 26.94 18.55 2.4 16.5 132IronMount 31.14 +.03 35.48 24.17 3.2 30.2 92JacobsE 43.19 +.62 48.15 33.61 - 14.7 87JMSmckr 86.72 +.76 89.38 70.51 2.3 20.2 39John&John @ 70.65 +.02 72.74 61.71 3.4 23.2 816JohnsonCn @ 29.75xd -.01 35.95 23.37 2.5 17.3 286JPMrgnCh @ 43.98 +.45 46.49 30.43 2.7 9.3 1778JuniperNtw 20.24 +.08 25.04 14.01 - 57.6 318Kellogg @ 56.54 +.39 57.21 46.33 3.1 17.1 126Keycorp 8.48 +.03 9.09 6.81 2.1 9.6 501Kimb-Clark @ 84.86xd -.14 88 70.50 3.5 17.9 99Kimco Real 19.52 +.16 21.15 15.99 4 66.9 144KindMnE 79.68 +.19 90.60 74.50 6.1 51.6 90KohlsCp 43.55xd -1.2 55.24 42.73 2.9 10 455Kroger 26.62 +.12 27.11 20.99 1.9 18.9 282L3 Comms 77.17 +.84 77.68 61.26 2.6 8.8 51LabCpAmer 87.48 -.39 95.30 81.31 - 14.4 64LasVegasSd @ 46.84xd -.54 58.31 32.61 8 27.3 301Lennar 39.31 +.04 39.88 18.46 0.4 14.7 351Leucadia 24xd +.03 29.79 19.58 1 11.7 115Lilly (E) @ 49.11 +.19 53.96 38.30 4 13.3 349Lim.Brands 48.18xd -.05 52.50 37.58 14.5 20.7 236LincolnNat 26.23 +.29 27.54 17.78 1.4 18.3 151Lockheed @ 92.06xd -.85 95.89 76.60 4.5 10.5 318Loews 41.09 -.08 43.36 36.42 0.6 18.8 104Lorilliard 117.89 +.43 141.07 106.83 5.3 14.1 56Lowe’s @ 35.13 +.02 36.47 24.64 1.8 20.8 683LSI 7.01 +.15 9.20 5.40 - - 1664M&TBkCp 100.72xd +.1 105.33 71.03 2.8 15.7 51Macys 37.80xd -.97 42.17 30.42 2.1 11.9 557MarathonOil @ 31.28 +.05 35.49 23.17 2.2 12.3 180Marriott 37.62xd +.4 41.84 27.93 1.3 23.6 234MarshMcL @ 35.03 +.27 35.78 30.16 2.6 16.7 386MarthnPet @ 62.35 +.13 63.44 30.24 1.9 8.3 129Masco Cp 16.63 +.28 17.19 8.98 1.8 - 305Mastercard @ 492.69 +3.3 494.87 336.27 0.2 28.5 47McDonalds @ 89.47 -.23 102.22 83.32 3.2 16.9 426McGrawH 54.65xa +.08 54.83 40.12 6.4 19.8 114McKesson @ 98.48xd +.51 100 74.89 0.8 15.1 75Mdwstvco 31.47 +.36 31.47 25.01 3.2 31.7 59MeadJohnN 65.91xd +.08 88.72 60.68 1.8 24.3 63Medtronic @ 42.58xd +.14 44.79 34.99 2.4 13.7 218

Merck @ 42.55xd -1.09 48 36.35 4 19.3 2343MetLife @ 33.47 +.25 39.54 27.65 2.2 16.3 608MGM Rsts 11.55 +.01 14.94 8.84 - - 369Mohawk 87.03 +2.76 89.28 53.43 0 26.6 147MolsonB 43.40 -.05 46.35 37.96 2.9 14.3 68Monsanto @ 91.83 +.15 93 67.27 1.5 24.3 126Moodys 51.14 -.4 51.60 32.32 1.3 18.5 191MorganStly @ 19.28 +.19 21.19 12.26 1 - 924Mosaic @ 55.07 -.38 61.97 44.43 1.6 13 250MotorolaSol 54.52xd +.19 55.46 44.18 1.8 23.2 65MurphyOil 60.55 +.11 62.73 41.40 6.1 17.1 224Nabors 14.87 +.16 22.73 12.40 - 21.9 231NewelRbm 21.74 +.07 22.48 14.65 2 16.8 118NewmontM @ 43.07xd -.68 64.61 42.95 3.3 - 580NextEraE @ 70.36 -.21 72.22 57.30 3.4 13.7 67Nike @ 97.82xd +.04 114.76 85.10 1.5 21.3 198NiSource 24.91 +.22 26.15 22.06 3.8 23.9 301NobleCp 36.19 +.39 41.71 28.74 1.5 17.7 229NobleEgy 102.04 +.33 105.43 76.83 0.9 47.5 64Nordstrom 51.80 -.99 58.43 46.27 2.1 15.8 297NorfolkS @ 62.65 +.5 78.49 56.05 3.1 11.4 262Northrop 68.86 +.16 71.25 55.05 3.1 8.9 159NtlOilVarc @ 68.93xd +.24 89.25 59.07 0.7 12.3 428Nucor 43.76 +.33 45.75 34.24 3.3 27.7 192NYSE Eurnxt 32xd +7.95 33.12 22.25 3.8 19 9221OccidPet @ 78.73xd +.49 106.67 72.43 2.7 10.8 244Omnicom 50.64xd +.03 54.75 41.05 2.4 14.7 153ONEOK 43.59 +.14 89.62 39.32 2.9 26.4 148ParkHn 86.18 -.03 91.44 70.49 1.9 12.1 62PeabdyEngy 26.71 -.36 38.96 18.78 1.3 9.1 337Penney 20.03 -.85 43.18 15.70 3 - 643Pepsico @ 69.71xd -.17 73.65 62.15 3.1 18.5 354Pfi zer @ 25.30 -.05 26.08 20.76 3.6 20.2 1715PG&E @ 41.60 +.13 47.02 39.22 4.4 19.3 324Phillips66 52.27 -.34 54.30 28.75 0.9 6.1 270PhilMorris @ 84.66 +.01 94.13 72.86 3.8 16.9 915PinnWstCp 52.07 +.21 54.66 45.96 4.1 15.5 30PionrNat 107.86 +.64 119.19 77.44 0.1 - 54Plum Creek 44.55 +.32 44.99 34.76 3.8 38.9 58PNCFin @ 58.60 -.04 67.88 53.36 2.6 11.9 295PP&L 29.01xd -.13 30.18 26.68 5 10.4 338PPG Inds 132.73 +1.52 133.24 78.80 1.8 22.2 69Praxair @ 108.49 +.09 116.92 101.93 2 19.3 70PrecParts @ 187.65xd +.09 189.35 150.70 0.1 20.7 83PrinFinGp 28.26xd +.13 29.95 22.82 2.8 11.9 103ProctGmbl @ 69.60 +.26 70.99 59.08 3.2 22.7 1089ProgreOh 21.50 +.11 22.37 17.51 6.5 14.4 208Prologis 36.71xd +1.07 37.58 26.80 3.1 - 270Prudential @ 54 +.75 65.16 44.47 3 20.9 254PublicSVC 30.61xd -.13 34.06 28.92 4.6 11 117PublStor @ 145.56xd +1.65 151.73 127.77 3 40.9 70QEP Res 30.15 -.19 35.60 24.35 0.3 35.6 131QuestDg 59.93 -.25 64.85 53.25 1.4 13.9 50RalphLrn 150.43xd -2.87 182.48 134.29 0.9 21.2 136RangeRes 63.20xd -.12 73.92 52.35 0.3 - 117Raytheon @ 58.95 +.2 59.17 45.45 3.4 10.1 90Red Hat 52.59 +.39 62.72 39.19 - 70.3 289

Reg.Financ. 7.09xd +.04 7.73 3.79 0.6 15.6 850RepSrv 29.75 -.21 31.31 25.15 3.1 17.3 113ReynoldsAm @ 41.81xd -.23 46.91 38.96 5.6 15.8 168Rockwell 82.88 -.71 84.80 61.21 2.2 16.1 119RockwlColl 58.28 -.19 61.46 46.40 2 14 85RoperInd 109.89xd +.44 113.34 82.77 0.5 23.7 24Safeway 18.04xd -.1 23.16 14.73 3.7 9.6 225SAIC 11.58 -.08 14.20 10.31 4.1 22.8 122Salesforce @ 169.58 -.28 172.72 94.09 - - 99Schlmbrg @ 70.93xd +.29 80.78 59.12 1.6 17.3 711ScrippsNtwk 59 +.03 66.33 41.07 0.8 18 61Sempra 71.99 -.27 72.87 51.94 3.3 20.5 73SherWil 151 +1.07 159.70 84.16 1 27.4 79SimonProp @ 157.64 +1.25 164.11 123.08 2.7 31.7 105SouthCpr @ 37.95 -.3 39.42 27.73 9.8 16.6 133Southern @ 43.42 +.1 48.58 41.75 4.5 17.1 361SpectraEn @ 27.72 +.13 32.26 26.56 4.1 18 304SprintNext 5.47 +.01 6.04 2.10 - - 3369Starwood 57.36xd +.97 61.09 44.14 2.2 20 347StateSt @ 46.34 -.16 47.30 38.21 2.1 11.7 313StJudeMed 36.74 +.59 44.79 30.25 2.5 15.4 245Stryker @ 56.31 +.35 57.14 45.61 1.6 15.1 70Suntrust 28.55 -.01 30.79 15.79 0.7 9.3 340SW Airl. 10.48xd -.08 10.61 7.76 0.3 16.3 320SwestEgy 33.91 +.17 36.87 25.63 - - 314Sysco @ 32.14 +.15 32.25 27.06 3.4 17.1 321TargetCp @ 60.59 -.93 65.79 47.25 2.2 13.4 754TE Conn 37.64 +.37 37.72 29.70 2.3 14 220Teradata 62.32 -.18 80.97 43.78 - 26.5 75Teva 38.15 -.12 46.65 37.40 2.7 15.6 161Textron 24.66xd +.04 29.18 17.15 0.3 17.5 103TheTrvelers @ 73.39xd -.04 74.70 55.88 2.4 10.5 216ThrmoFshr @ 64.85xd +.1 65.54 43.40 0.8 20.7 134Tiff any 57.92xd -1.07 74.20 49.73 2.2 17.9 185TimeWrnr @ 47.77 +.13 48.54 33.42 2.2 18.1 427TimeWrnrC @ 97.05 +1.4 100.50 60.71 2.3 14 136TJX @ 42.16 -1.09 46.67 30.68 1.1 20.6 669Torchmrk 52.58 +.71 53.12 41.56 1.1 10.3 74TotalSys 21.80xd -.13 25 18.89 1.8 17 259TrnsOcean 46.18 -.23 59.02 38.22 5.1 - 152TycoInt @ 29.38 +.14 29.45 21.80 3.1 49.2 128UnionPac @ 125.41xd -.36 129.27 98.29 2 15.5 113UNUM Grp 21 +.03 24.81 18.28 2.2 24 187UPS B @ 74.70 -.9 81.79 69.56 3.1 21.6 263USBancorp @ 32.10 -.1 35.46 25.44 2.4 11.4 1069UtdHlthcre @ 55.09xd +.6 60.75 48.84 1.5 10.5 387UtdTech @ 82.93 -.1 87.50 70.72 2.4 14.3 246ValeroE 34 -.03 34.49 19.12 1.9 17 452VarianMedS 71.55 +.61 72.61 52.90 - 19 95Ventas @ 64.38xd +.69 68.07 52.10 3.9 47.1 103Verizon @ 43.51 +.13 47.32 36.80 4.7 40.6 568VF Cp 149.29 -1.93 169.82 125.56 2 16.6 51Visa @ 150.94 +1.78 151.54 97.70 0.7 48.2 165Vornado 79.89 +.56 87.32 71.69 3.5 45.3 78VulcanMat. 52.97 -.13 53.84 32.31 0.1 - 38Walgreen @ 37.20 -.05 37.75 28.53 2.7 15.4 750WalMart @ 68.70xd +.18 77.50 57.18 2.3 14.1 575

WasteMng 33.89 +.09 36.35 30.83 4.2 18.3 201WatersCp 89.23 +.84 94.45 71.46 - 18.9 27Weatherfd 10.92 -.09 18.33 8.84 - 23.9 548Wellpoint @ 60.78xd +.81 74.73 52.52 1.9 8 156WellsFargo @ 34.68 +.06 36.60 25.19 2.2 10.9 1480WestUnion 13.62xd -.08 19.82 11.94 3.1 6.8 670Weyerhsr 28.21 +.36 28.82 16.27 2.2 49.7 164Whirlpool 101.22 -.93 104.21 45.22 2 16.4 66WilliamsCp @ 32.51xd -.02 37.56 25.04 3.7 30.6 565WiscnsnE 37.45 -.14 41.48 33.54 3.3 15.5 61XcelEngy 27.32 -.05 29.92 25.84 3.9 14.7 132Xerox Cp 7.08 +.02 8.83 6.10 2.4 7.9 280XL Grp 24.87xd +.07 25.77 18.86 1.8 - 151Xylem 27.16 -.21 28.83 22.45 1.5 18.4 75Yum!Brands @ 65.95 -1.21 74.74 57.45 1.9 19.4 595ZimmerHld 68.40 +.16 69.08 47.55 1.1 16 121

NASDAQ (Dec 20 / 1:00 pm/US$)ActivBlz 10.66 -.19 13.01 10.45 1.7 13.7 9433Adobe 37.94 -.15 38.25 27.40 - 22.9 1878Amazon @ 259.21 +1.22 264.11 166.97 - - 1067Amgen @ 88.23 -.26 90.81 59.97 1.8 15.8 1316AnalogDev 42.09 -.22 42.73 33.38 2.9 19.8 877ApolloGp 20.94 +.22 58.29 18.36 - 6.5 953AppldMat 11.27 -.07 13.94 9.95 3.2 - 3365Apple @ 520.73 -5.58 705.07 380.48 1 11.8 9199Autodesk 35.86 -.14 42.69 27.70 - 34 898BedBathB 55.21 -5.08 75.84 54.33 - 12.6 11220Biogen @ 151.19 -.12 157.18 109.22 - 26.3 289BMCSware 41.88 -.03 45.70 31.62 - 20.2 625Broadcom 33.22 +.06 39.66 27.59 1.2 26.3 2017CA Inc 22.56 +.12 28 19.80 4.4 11.4 2171Celgene @ 80 +.3 82.78 58.53 - 22.2 981CH Rob 63.47xd -.16 71.76 50.81 2.1 23.1 422CheckPnt 48.43 +.71 65 40.60 - 16.9 680Cisco @ 20.17 -.1 21.30 14.96 2.2 13 12379Citrix 65.41 -1.04 87.99 56.57 - 35.6 1474CmcstASp 36.64 -.02 36.91 22.56 1.8 - 1903CME Group @ 51.35xa -1.28 59.42 43.35 4.7 11.5 2603Cognizant @ 73.04 -.23 78 53.92 - 22.1 1356ComcastA @ 37.99 -.02 38.19 22.71 1.7 17.3 5127Costco @ 98.70 +.02 100.22 73.60 8.2 24 895Dell 10.47 -.02 18.36 8.69 1.5 5.4 4811DirectTV @ 51.27 +.07 55.17 41.45 - 12.6 1872EBay @ 51.67 +.33 53 29.55 - 17.6 4704ElectArt 14.10 -.31 21.45 10.77 - - 4359Expedia 60.35xa -.43 62.26 25.62 1.6 23.7 577ExpIntWsh 39.75 +.14 47.48 34.20 1.4 24.8 974ExpScripts @ 54.23 +.07 66.06 43.02 - 29.8 2565Facebook 27.44 +.03 45 17.55 - - 18199Fifth 3rd 14.95 - 16.16 11.76 2.4 9.7 2423First Solar 32.57 -.46 50.20 11.43 - - 1901Fiserv 80.14 +.45 81.26 56.29 - 18.9 285Fossil 94.10 - 139.20 62.77 - 18.9 428Garmin 41.54xd -.51 50.67 35.55 4.2 14.1 316GileadSci @ 73.90 -.85 77.12 36.98 - 23.1 2025Google @ 721.35 +1.24 774.38 556.52 - 22.6 855Hasbro 36.41xd -.16 39.98 31.51 4 14.2 641Intel @ 20.94 -.16 29.27 19.23 4.2 9.1 15476Intuit 61.82 -.31 62.86 50.89 1 24.5 706IntuitSrg @ 505.54 -9.92 594.89 429.26 - 32.7 846KLA Tenc. 48.24 +.32 55.43 43.21 3.1 11.7 392LibIntCpA 19.69 +.08 20.95 13.58 - - 1470LifeTch 51.58 +.4 51.97 37.97 - 22.7 1174LinearTec 34.23xd +.09 34.70 28.28 3 16.1 745Marvell 8.52xd -.2 16.86 7.05 2.1 14.6 3947Mattel 37.17 -.21 37.96 27.13 3.3 15.4 818MaximInt 29.57 -.49 30.74 23.55 3.1 25.4 1996MicronT 6.79 -.03 9.16 5.16 - - 10425Microsoft @ 27.42 +.11 32.95 25.44 3.1 14.8 21464MondelezInt @ 25.92 -.02 28.48 23.65 4.5 13.9 5272Netapp 33.93 -.38 46.80 26.26 - 26.9 1956NewsCorpA @ 25.38 +.15 25.53 16.68 0.7 23.1 6426NewsCorpB 25.99 +.06 26.24 17.28 0.7 - 1347NII Hldgs 7.47 +.13 24.32 4.75 - - 2899NorthnTst 49.96xd +.36 50.13 38.15 2.4 18.8 998Nvidia 12.57 -.08 16.90 11.15 0.6 15.6 4528Oracle @ 33.99xd -.1 34.35 24.91 1.1 16 13078PACCAR 44.68xd -.26 48.22 35.21 3.5 13.5 918Paychex 32.28xd -.77 34.70 28.76 5 21 8254Prclne.cm @ 627.52 +.29 774.96 455.10 - 23.7 135Qualcomm @ 62.66xd +.11 68.87 51.76 1.5 20.5 4143RschMt 13.80 +.17 17.96 6.22 - 3.3 16803SeagateT 30.35xd +.03 35.71 15.02 4.2 4 2175Sears Hld 44.09 -.19 79.99 26.90 - - 466SiriusXM 2.98xd +.02 3.01 1.78 1.7 5.7 14641SLM Cp 16.69xd -.18 17.99 12.85 3 7.7 863Staples 11.79xd -.32 16.93 10.57 3.7 - 7278Starbucks @ 53.98 -.3 62 43.04 1.3 30.2 2214Symantec 18.47 -.14 19.54 13.06 - 11.6 2658T.RowePr 66.08xd +.09 66.95 53.57 2.1 20.6 480TexasInstr @ 31.13 -.12 34.24 26.06 2.3 20.3 2748VertexPhm 43.21 +.19 66.10 32 - 74 939ViacomB @ 53.49xd +.07 56.91 41.98 2 12.2 2017WestDigtl 41.87xd +.67 45.94 28.31 1.2 5.6 2999WynnRes 113.72 +.08 138.28 90.11 12.8 21.8 291Xilinx 36.18 +.13 37.74 30.25 2.3 19.6 972Yahoo @ 19.52 -.08 19.76 14.35 - 5.9 12696

Other International StocksAUSTRALIA (Dec 20/Aust$)AMP 4.80 - 4.85 3.71 6.8 18.9 13030ANZ @ 24.80 +.16 27.63 20.26 8.4 11.6 10182BHP Biltn @ 37.04 -.02 38.25 30.09 4.1 13 14454Brambles 7.39 +.04 7.69 6.04 3.9 19.4 6389CCAmatil 13.41 +.02 14.19 11.30 5.8 14.9 2415CmwBkAu @ 61.51 +.18 61.88 47.50 7.8 13.7 5916CSL @ 54.13 +.53 55.20 29.61 1.5 28.6 2167FortescMet 4.50 -.16 6.18 2.81 2.5 9.2 21318Leighton 17.42 -.13 26.65 14.71 4.6 - 1354MacQuarie 34.90 +.08 35.50 22.79 4.3 15.1 2505NatAusBk @ 24.88 +.08 27.13 21.95 10.3 11.6 10395NewcrestM @ 22.49 -.07 36.10 20.89 2.5 15.4 4986NewsCorpA 23.94 -.23 24.90 16.70 0.6 - 10NewsCorpB 24.72 -.06 25.20 17.37 0.6 53.6 1988Orica 25.04 +.34 28.27 22.86 4.3 22.9 2582OriginEgy 11.71 +.04 14.19 9.84 6.1 12.9 4832QBE InsGrp 10.54 -.08 14.71 9.88 6.7 14.7 6297RioTinto 65.30 -.41 72.30 48.37 3.3 26.4 3932Santos 10.72 -.16 14.63 10.04 4 19.5 6359Stockland 3.56 +.04 3.64 2.90 6.7 16.9 19361Suncorp 10.30 +.24 10.34 7.33 7.6 18.2 6121Telstra @ 4.35 +.01 4.39 3.18 9.2 15.8 46371Wesfarm @ 36.61 +.48 36.65 28.25 6.4 19.9 4189Westfi eld @ 10.62 +.09 10.76 7.68 4.6 14.5 10703Westfl dRT 3.03 +.03 3.19 2.34 5.8 11.3 18429Westpac @ 25.97 +.17 26.12 19.94 9.1 13.3 10028WoodsdPt @ 33.51 -.39 38.16 30 4.9 17.9 3820Woolworth @ 29.49 +.1 30.62 23.96 6.1 19.8 6449

AUSTRIA (Dec 20/Euro)Andritz 49.22 -.24 50 31 2.2 20.5 116ErsteGrBnk 24.10 -.21 24.70 11.66 - 12.3 900Immofi n 3.26 -.15 3.43 2.14 7.7 12.5 5659OMV 27.70 -.19 29.21 21.21 4 7.2 312Raiff eisen 31.36 -.2 33.80 18.05 3.3 7 131Strabag 20.19 -.12 23.50 17.03 3 - 26TelekAust 5.66 -.06 9.35 4.51 0.9 - 465Verbund 18.77 +.12 23.20 14.50 2.9 18.4 127Vienna Ins 39.35 -.17 39.73 26.78 2.8 3.8 52Voestalp 27.73 +.29 28.50 19.61 2.9 18.2 282

BELGIUM/LUX (Dec 20/Euro)Ackermans 61.91 -.63 65.97 55.12 2.6 13.5 31Ageas 22.47xa +.22 22.57 11.51 3.6 11.3 480AnBshInBv @ 67.06 +.02 71.05 44.24 1.8 18.8 1190Belgacom 22.19xc -.23 24.40 20.37 9.8 9.8 500Colruyt 37.65 -.57 38.68 27.78 2.5 17 128Dlhaiz 30.21 -.29 46.91 25.59 5.8 8.2 591GBL 60 -.4 60.90 48.80 4.3 8.9 67KBC 26.13 +.03 26.78 9 0 51.2 1377SES 22 +.01 22.65 17 4 - 1Solvay 109.15 +.25 109.80 61.52 2.8 23.7 243Telenet 35.60 +.05 37.15 27.74 11.9 - 132UCB 44.22 - 46.14 29.12 2.3 46.2 117Umicore 42.30 -.21 44.90 30.11 2.6 17.1 392

BRAZIL (Dec 20 / 12:00 am/Real)Ambev @ 86.90 -2.3 90 62.14 0.9 32.7 681BcoBrad 34.95xd -.88 36.12 22.57 3 - 442BcoSantdr 0.14xd - 0.18 0.13 3.4 - 1443BM&FBovsp 13.93 -.37 14.44 8.84 3.4 25.7 14982BncBrasil @ 24.35xd +.15 29.79 18 10.2 6 3377Bradesco @ 36.35xd -.51 37.02 26.60 3.2 12.4 2788BrasilFds 41.92 -.03 42.43 27.53 - - 1685Cielo 54.53 -.29 64.11 38.88 4 16.1 778Eletrobras 6.40 -.05 19.52 6.03 140 - 884GerdauPf 18.13 -.11 21.67 13.40 1.9 14.8 5968ItauHldFin @ 33.64xd -.41 38.94 26.73 3.4 11.4 4585ItuasaPf @ 9.88xd -.09 11.49 7.99 3.2 10.1 5160JBS 6.05 +.14 8.50 4.91 - 25.9 2851OGX Petro 4.26 - 18.41 4.21 - - 20964PetrobasPf 20.70 -.23 25.89 17.42 9.4 14.6 13079Petrobras @ 20.85 -.28 28.26 18.05 9.3 - 6029SiderNacO 11.89 -.25 19.55 9 6.9 - 2280SouzaCruz @ 31 -.15 33.33 21.48 13 28.4 2365UsinasMin 12.76 +.12 13.77 5.57 8.5 26.6 3769ValRio @ 41.56 -.49 46.30 32.21 12.7 - 1417ValRioPrf 40.11 -.4 44.30 31.73 4.9 8.7 5726

CANADA (Dec 20 / 1:00 pm/Can $)Agnico-E 49.44 -1.46 56.99 31.50 1.6 - 421Barrick @ 32.53 -.92 50.33 31.18 2.3 9.9 1667BCE @ 42.46xd -.29 45.28 39.12 5.2 13.7 681BkMontrl @ 60.69 -.24 61.29 53.15 4.7 9.9 500BkNvaS @ 57.82 -.15 58.17 48.68 3.9 11.1 894Brookfi eld @ 36.47 +.26 36.54 27.04 1.5 17.7 389Cameco 20.47 -.04 26.43 16.50 2 16.7 776CanadPcR 100.70 +.95 100.85 63.59 1.3 25.1 305CanImp @ 82.19 -.07 82.59 69.13 4.5 10.5 352CanNatRs @ 28.47xd +.05 41.12 25.58 1.5 13.2 1798CanNatRy @ 90.55xd +.13 92.20 74.50 1.7 15 367CanOilSd 19.98 -.12 25.19 18.21 6.8 9.8 363CenovusE @ 32.86xd -.49 39.64 30.09 2.7 18.1 848Enbridge @ 42.45 -.1 42.67 35.39 2.7 41.1 518Encana 19.94xd -.08 23.86 17.25 4 - 833Goldcorp @ 34.68xd -1.26 50.17 32.34 1.5 19.2 1670GtWesLif @ 24.32xd +.05 25.28 19.15 5.1 11.2 146HuskyE @ 29.17xd +.04 29.44 22.04 4.1 14.7 580ImpOil @ 42.63xd -.26 49.26 39.77 1.1 9.8 158KinrossG 9.10 -.25 13.33 7.15 1.7 - 1308Loblaw 40.86xd +.09 42.05 31.11 2.1 16.8 193Manulife @ 13.63 +.03 14.07 10.18 3.8 56.3 1814NatBkCan 77.98 +.13 81.27 70.50 4.1 8.4 684Nexen 26.44xd +.05 26.70 14.94 0.8 38.1 379Potash @ 39.52 -.53 47.94 37.02 1.8 11.5 720Power Cp 25.18xd -.14 27.42 21.70 4.6 11.3 111PowerFn @ 27.50 -.07 30.15 24.06 5.1 10.6 154ResMot 13.63 +.14 18.23 6.10 - 3.1 2623RogCmB @ 45.07xd +.43 45.21 34.75 3.5 15.6 355RylBkC @ 60.58 +.05 60.85 48.40 3.9 12.2 1136Suncor En @ 32.66xd -.03 37.28 26.97 1.5 10.7 938

SunLfFin 26.51xd -.02 28 18.06 5.4 27.2 521TalismEnrgy 11.17xd -.08 14.69 9.72 2.4 - 1981TeckResB 35.52xd -.47 44 26.02 2.4 16 1113TelusCorp @ 64.90xd -.5 65.96 55.19 3.8 16.7 176ThmReut @ 28.94 +.14 30.25 26.10 4.4 - 274TntoDom @ 82.68 -.42 85.85 72.50 3.6 12.2 639TransCan @ 46.95 +.16 46.98 40.34 3.7 24.2 559Weston Ltd 70.17xd - 70.89 57 2.1 19.2 23

CHINA (Dec 20/Renminbi)AgricBkCh 2.74 -.01 2.80 2.38 4.8 6.3 60828Air China 5.65 +.08 7.43 4.50 2.1 18.9 21958AluCorpCh 3.49 -.08 4.45 2.86 - - 34764AlumCpCh 5.14 +.03 7.89 4.55 - - 14833AnhuiCC 28.25 -.85 29.70 19.10 1.5 14.4 17138BaoshanStl 4.86 +.02 5.36 4.07 - 7.2 26521Bk China 2.87 -.02 3.10 2.58 5.4 6.1 24912BkofComms 4.62 -.03 5.10 4.07 2.2 5.2 58176ChCiticBk 4.10 -.03 4.73 3.49 3.5 5.4 21837ChCoalEgy 7.58 +.04 10.22 6.62 - 11.5 11896ChConstBk 4.53 - 4.95 3.82 5.2 6 30391China Life 19.28 -.08 20.36 15.88 1.2 60.3 9153ChinaUncm 3.40 +.02 5.39 3.15 1 39.8 97356ChMinsheng 7.43 -.08 7.72 5.39 6.1 5.8 219312ChMrchBk 12 +.12 13.10 9.54 3.5 6.3 82884ChPacIns 20.41 +.17 23.80 16.15 - 39.6 18297ChShBldIn 4.43 -.06 6.86 3.91 - 16.7 51818ChShenEgy 23.55 -.12 28.65 20.93 - 9.9 15122ChStCnsEng 3.63 +.08 3.69 2.85 2.2 7.7 113041ChYgtzPwr 6.75 +.01 7.14 6.13 3.8 11.1 13390Citic Sec 12.04 +.24 13.99 9.04 3.6 10.5 84589Daqin Rail 6.52 +.05 7.82 5.82 6 8.4 38149InCBkChina 4.07 -.03 4.48 3.60 5 6.2 48457IndstrlBk @ 15.24 -.11 15.68 11.59 2.4 5 93278Moutai @ 218.40 -1.05 266.08 170.90 1.8 18 3443Ping An 42.26 +.49 46.85 33.35 0.9 16 17918Saic Motor @ 16.38 +.39 16.68 11.17 1.8 8.7 25206ShangPort 2.56 -.01 3.13 2.37 4.6 13 8393ShngPdgBk @ 9.06 +.01 9.75 7.10 3.3 5 149751ShznVanke 9.48 +.17 9.95 7.06 1.4 9.4 79967Sinopec 6.72 +.1 7.93 5.75 4.5 11.3 38355WulianYnb @ 27.60 -.19 39.55 23.31 1.8 11.5 43103

CZECH REP (Dec 20/Koruna)Cez @ 668 +7.5 845.90 616 6.7 7.3 445KomercBnk 4.03k -48 4.23k 3.05k 4 11.5 28TelCzRep 317.50xd -5.5 404.28 315.90 12.6 13 415

DENMARK (Dec 20/Kr)Carlsberg B 552.50 +4.5 579.50 385 1 15.8 302DanskeBk 97.95 +1.2 113.40 71.25 - 25.3 1351MoellerMA 40.36k -280 46.2k 32.6k 2.5 - 1MoellerMB @ 42.88k -400 48.16k 34.24k 2.3 10.7 5NovoB @ 906 -2.5 980.50 630 1.5 24.2 557Novozym 160.50 +.8 180 144.40 0.6 23.7 428TDC 40 +.38 47.23 36.90 11.5 8.8 1468VestaWind 35.84 +1.84 75 23.25 - - 3758WilDemant 490.40 +4.1 596.50 443.40 - 23 67

DUBAI (Dec 20/US$)DP World 12 +.45 13 9.46 2 44.4 61

FINLAND (Dec 20/Euro)Fortum @ 14.35 -.02 19.36 12.81 7 10.4 1484Kone Corp 56.70 -.2 60 37.08 2.5 21.6 202Metso 32.07 +.03 37.27 24.88 5.3 11.4 630Neste Oil 9.75 -.09 11.23 7.11 3.6 21.7 494Nokia 3.17 +.01 4.46 1.33 6.3 - 26626OtkmpA 0.80 -.02 2.15 0.63 - - 6505SampoA 24.44 +.03 25.04 17.91 4.9 10.7 595StorEnsR 5.34 +.03 5.95 4.08 5.6 13.3 1676UPMKym 9.06 +.07 10.98 7.68 6.6 13.9 1582Wartsila 32.89 -.04 33.11 20.87 2.7 21.4 313

FRANCE (Dec 20/Euro)Accor 26.63 +.13 27.76 17.20 2.4 - 1045ADP 61.95 -.37 67.29 51.62 2.8 19.4 37AirFrn-KLM 7.25 +.03 7.60 3.01 - - 2546AirLiquide @ 94.63 +.4 100 80.29 2.4 18.7 732Alcatel 1.06 + 1.97 0.71 - 2.8 64961Alstom 30.98 +.03 32.90 21.86 2.6 11.8 1028AXA @ 13.28 +.15 13.31 8.65 5.2 11.9 8106BNP Parib @ 44.54 -.02 44.83 24.54 2.7 8.2 2895Bouygues 22.16 +.04 25.74 17.54 7.2 8.3 1132CapGemini 33.56 -.93 34.57 23.67 3 12.3 1445Carrefour 19.20 -.21 19.66 12.87 2.7 21.4 3011Casino 73.09 -.37 75.94 60.01 2.1 15 318ChristianD @ 130.05 +.25 130.45 86.40 2.1 18.2 83CNP 11.77 -.03 12.90 7.52 6.5 8.6 217CredAgric 6.26 +.08 6.56 2.84 - - 9690Danone @ 49.76 +.19 54.96 45.61 2.8 17.7 1731DassaultSy 85.24 -.18 87.75 57.87 0.8 32.3 113EADS @ 29.87 -.13 31.69 22.40 1.5 16.1 1386EDF @ 14.05 -.11 19.72 13.39 8.2 8 1634Eiff age 34.28 +.5 35 16.45 3.5 13.9 122Eramet 111.55 -.1 139.90 75.95 2 36.2 10Essilr @ 75.66 -.68 78.24 51.54 1.1 28.7 669FranceTele @ 8.24 -.04 12.40 7.84 16.7 5.9 7346GDF Suez @ 15.20 -.25 21.85 14.55 9.9 9.4 6890Gecina 87.58 -.41 89.25 55.91 5 63.6 37Hermes @ 225.75 -2.45 285.49 206.10 0.9 36.8 14JC Decaux 18.33 -.19 23.48 15.75 2.4 20.3 170Klepierre 30.09 +.15 30.24 20.22 4.8 37.3 121Lafarge 48.31 +.24 48.45 25 1 42.2 836Lagardere 25.47 +.2 25.95 17.67 5.1 - 390Legrand 31.90 -.11 32.21 22.72 2.9 17.5 520L’Oreal @ 105 +.05 106.40 76.83 1.9 24.1 555LVMH @ 139.80 +.5 140.25 103.20 2.1 20.3 762Michelin 71.32 +.16 72.58 42.31 2.9 7.5 506Natlxis 2.63 + 3.07 1.76 3.8 9.5 2264

PernodRic @ 87.75 - 91.11 66.50 1.8 20.1 478Peugeot 5.63 +.04 15.18 4.32 - - 8226PPR @ 142.75 +.05 144.50 104.60 1.1 17.8 251Publicis 45.91 +.12 46.10 33.09 1.5 14.2 458Renault 40.96 -.67 43.83 25.01 2.8 6.9 1266Safran 32.52 -.13 32.85 21.21 2.1 - 889Sanofi @ 72 +.86 72.25 53.02 3.7 15.9 3675Schneider @ 56 -.02 56.37 37.01 3 15.8 1611SocGen @ 29.49 -.27 30 14.88 - 16.4 3740Sodexo 64.80 +.31 64.99 51.98 2.5 18.7 189StGobn @ 32.50 +.22 37.63 23.90 3.8 16.7 1763STMicro 5.39 +.03 6.46 3.64 5.6 - 4516SuezEnvir 9.21 +.02 12.23 7.81 7.1 32.1 988Technip 87.04 +.18 92.36 66.29 1.8 17.5 333Thales 27 -.3 28.91 21.83 2.9 10.6 322Total @ 38.97 -.24 42.97 33.42 6 8.3 5086UnibailR @ 183.90 +1.35 184.80 126.40 4.4 14 267Vallourec 40.86 -.1 58.24 25.69 3.2 18.6 685VeoliaEnv 9.26 +.04 13.06 7.38 7.6 - 2032Vinci @ 36.04 -.08 40.85 31.12 4.9 10.4 1639Vivendi @ 16.86 -.06 17.17 12.01 5.7 14.2 4189

GERMANY (Dec 20/Euro)Adidas 67.17 -.41 69.26 47.11 1.5 17.3 587Allianz @ 105.45 +.3 105.50 68.50 4.3 10.7 1215AxelSprg 32.65 -.05 39.87 30.92 5.2 15.3 127BASF @ 72.30 -.79 73.41 50.58 3.5 13.2 2740Bayer @ 72.40 +.97 73.09 44.47 2.3 24.2 2152Beiersdorf @ 61.67 +.07 62.60 42.11 1.1 51.4 239BMW @ 72.17 +.15 73.95 49.42 3.2 9.9 1340Celesio 12.99 +.09 15.85 10.72 1.9 - 378Commerzbk 1.49 -.01 2.21 1.12 - 8.8 36066Daimler @ 41.27 +.03 48.95 31.10 5.3 7.9 2751Deut Bank @ 33.54 -.17 39.51 22.11 2.2 10.6 4208Deut Brse 46.36 +.35 52.10 36.25 7.1 13.6 1603Deut Tlkm @ 8.63 +.05 10.06 7.69 8.1 - 13977DeutPstbk 31.75 -.11 32.45 23.22 - 16 2DeutsPost @ 16.59 +.01 16.75 10.96 4.2 40.5 2494E.ON @ 14.30 +.02 19.74 13.61 7.7 - 6213Fielmann 73.87 -.23 80.85 65.20 3.4 25.2 24FraPort 44.57 +.2 49.84 37.06 2.8 15.6 93Fresenius @ 88.13 -.6 96.93 68.48 1.1 16.8 337FresMedC @ 52.19 +.06 60.27 50.02 1.3 38.1 646GEA Grp 24.74 +.14 26.83 19.47 2.2 14.7 330Hann.Rck 59.73 -.08 59.89 36.12 3.5 8 141HeidCmnt 46.67 +.43 46.83 29.48 0.7 27.3 904Henkel 62.44 -.64 65.16 42.90 1.3 21.8 600Hochtief 44.78 +.18 55.68 34.64 - - 113Infi neon 6.19 -.08 7.99 4.87 1.9 15.5 7390K & S 35.83 -.1 41.50 30.14 3.6 14 1028LANXESS 67.85 +.37 68.90 36.68 1.3 12.1 353Linde @ 133.40 -.5 136.90 109 1.9 19 372Lufthansa 14.39 -.05 14.46 7.88 1.7 38.9 2298MAN 82.53 +.17 103 61.66 2.8 - 107Merck KG 100.65 +1.22 106.55 71.95 1.5 50.8 308Metro 21.63 -.08 32.15 19.52 6.2 18.5 1033MTU Aero 69.85 - 70.74 46.10 1.7 17.4 144MuenchRkv @ 136.55 +.15 137.15 89.40 4.6 7.3 449Porsche 57.37 +.44 58.70 37.69 1.3 17.5 338Puma 225.85 -.95 277.05 209.05 0.9 23.2 9RWE @ 31.79 +.07 37.12 25.94 6.3 8.4 2256Salzgitter 40.02 -.32 48.95 27.03 1.1 30.8 200SAP @ 61.10 +.08 61.94 39.47 1.2 14.1 2327Siemens @ 82.98 -.01 83.46 62.13 3.6 16.3 1845SMA Solar 18.28 +.25 55.75 15.61 7.1 5.3 52Suedzucker 30.74 -.05 31.10 21.43 2.3 9.3 376ThyssenKr 18.24 -.34 23.29 11.45 - - 4192Volkswgn @ 160.10 +.3 161 101.75 1.9 3.1 82WackerChm 51 -.37 92.60 40.48 4.3 59.3 153

GREECE (Dec 20/Euro)Alpha Bk 1.29 -.12 2.42 0.42 - - 3812BkPiraeus 0.31 -.04 0.81 0.19 - - 9614Coca Cola 17.30 +.45 18.24 11 2 27.9 202EFGEbk 0.60 -.06 1.48 0.29 - - 1842HelPetro 6.75 -.11 7.50 3.94 6.7 30.7 95HelTel 5.32 +.18 5.32 1.09 - 5.9 1410NatBkG 1.32 -.06 3.13 0.90 - - 6163OPAP 5.51 -.09 7.90 3.50 13.1 3.5 880PublPwrC 5.55 +.02 5.70 1.13 - - 435TitanCem 13.17 -.62 16.48 10.07 1.4 - 72

HONG KONG (Dec 20/H.K.$)AgricBkCh @ 3.84 +.02 3.98 2.72 4.3 7.1 164458AIA @ 30.45 +.05 31.90 22.45 1.1 27.1 73380Bk China @ 3.46 -.02 3.51 2.73 5.6 5.9 275251Bk of EAsia 29.35 -.1 32.50 24.95 3.2 14.2 1332BkofComm @ 5.81 -.06 6.55 4.75 2.1 5 35459BOC HK @ 24.20 -.2 25 18.10 4.6 13 7127CathayPcA 14.08 -.04 16.38 11.76 2.4 31.5 2108ChConstBk @ 6.26 -.06 6.62 4.71 4.7 6.7 288005ChinaLife @ 24.15 -.25 24.70 17 1.2 37.3 41652ChinaMob @ 90.50 +.25 92.60 72.20 3.7 11.7 15970ChinaRes 28.05 -.3 30.80 18.88 1.7 19.2 1701ChinaTele 4.29 +.03 4.92 3.23 2 18.3 58248ChMerch 25.10 -.1 29 21 2.7 18.2 2145ChngKong @ 119.90 - 122.40 86 2.6 9.8 3200ChOvLnd&In 23.60 +.5 24.25 9.44 1.6 11.6 21052ChResLand 20.55 +.3 22.25 11.64 1.1 14.2 12033ChResPwr 19.26 -.02 19.46 13.42 1.6 18.3 3459ChRongshng 1.41 +.02 3.03 0.95 1.9 11.3 77078ChShenEgy @ 33.75 +.1 36.45 24.15 3.3 11.1 19092ChUncHK @ 12.14 +.08 16.96 9.45 1 46.9 38168Citic Pac 10.82 -.02 15.88 8.64 4.2 4.5 3846CKI Hld 47.40 -.75 49.40 42.25 3.3 13.2 3833CLP @ 64.10 -.2 69 62.10 4 22.5 9148CNOOC @ 16.84 - 18.20 13.18 2.6 9.8 36659EspritAsia 11xd -.16 19.78 8.83 3.5 17.7 17801HangLung 30.05 +.2 31 21.50 1.8 21.7 8679HangSeng @ 118.10 +.5 120 91.15 4.4 12.5 1373HendersLd 56.20 +.3 57.90 35.40 1.8 8.3 2478HKChGas @ 20.90 -.15 21.60 15.72 2.3 25.8 4805HKExch 130.80 -.6 148.90 100 3 31.4 3837HSBC 81.65 +1.15 81.80 57.05 4.3 15 22903Hutchison @ 80.95 +.35 82.40 61.80 2.6 17.3 4785In&CmBkCh @ 5.60 +.01 5.72 3.97 4.5 6.9 357033

Inbursa @ 40.99 +.89 42.69 23.69 0.8 32.6 667TlvCPO 68 +.02 68.40 48.50 0.5 24.5 1602Walmex @ 41.69 +.64 45.15 34.12 1.1 33.6 7532

NETHERLANDS (Dec 20/Euro)Aegon 4.89 +.07 4.90 2.85 - 9.4 8874Ahold 10.27 -.02 11.07 9.01 3.9 11.5 1987Akzo N 49.67 +.27 49.75 33.54 2.9 - 670ArcelorMit @ 13.21 +.13 17.96 10.60 1.1 - 6363ASML Hld @ 48.82 +.23 49.95 30.98 25.6 11.8 926Boskalis 34.10 +.19 34.20 23.27 3.5 14.6 178Corio 34.68 +.18 41.22 31.25 8 18.7 470DSM 46.15 -.15 46.60 33.55 3.2 21.9 586Fugro 44.75 +.63 57.88 37.65 3.4 11.7 554Heineken @ 49.71 -.25 51.75 33.58 1.7 17.9 678ING @ 7.18 -.02 7.58 4.44 - 7.5 10180KPN 3.60 -.12 9.35 3.59 3.3 4.9 19225Philips @ 20.16 +.11 20.43 13.57 3.5 43.8 2233PostNL 2.91 +.05 4.83 2.07 17.5 0.3 3094Randstad 27.77 +.45 30.09 20.53 4.5 43.4 619ReedElsvr 11.19 +.05 11.47 8.10 4.1 14.7 1777Robeco 24.08 -.11 24.80 20.44 2.5 58.7 79RylDShlA 26.33 +.07 29.18 24.30 5.1 8 3466Unilever @ 29.35 +.09 29.67 24.51 3.2 20.4 3421WoltKluw 15.44 +.12 15.76 11.39 4.4 19.5 907

NEW ZEALAND (Dec 20/NZ $)AucklndAir 2.70 +.02 2.72 2.36 4.6 34.1 ContactE 5.34xc +.16 5.49 4.49 7.2 19.8 FletchrBld 8.45 +.18 8.45 5.78 5.4 31.1 Telc.of NZ 2.32 +.03 2.75 1.96 14.2 4.3

NORWAY (Dec 20/Kroner)AkerSol 112.80 -1.2 117.90 57.20 3.5 12.6 768DNB @ 70.25 +.15 75.30 53 2.8 8.3 3224NorskHyd 27.93 +.07 34.58 22.97 2.7 - 5796Orkla 48.46 +.36 48.84 39.21 5.2 29.4 2159Roy.Carib. 188xd -11.9 202.50 134.50 1.3 16.1 2018Seadrill @ 208.70xd -.9 246.90 188.50 9 16.4 1534Statoil @ 138.80 -1.8 162.80 133.20 4.7 5.4 4142Subsea 7 134.90 -.7 147.69 98.88 2.5 9.8 1235Telenor @ 112.40 -2.1 117.50 86.90 4.4 48.2 2644YaraIntl 276.80 -1.9 305.50 217 2.5 6.7 828

POLAND (Dec 20/Zloty)BkPekao 168.30 +4.5 168.90 128.10 3.2 14.3 355BRE Bank 329.90 -3.3 337 234.60 - 11.4 50ING Bank 90.50 +.5 92.70 71 - 13.8 65KGHM 190.60 -3.9 194.80 102.70 14.9 5.1 776PGNIG 5.17 -.02 5.25 3.61 - - 6686PKN Orlen 52.20 -.75 53.70 31.44 - 6.9 1313PKO Bank 37 +.54 37.34 30.10 3.4 12.1 2321PZU 426.60 -9.3 441.50 290.10 5.3 11.1 438Telek.Pol 12.30 +.01 18.08 11.56 8.1 14 7779

PORTUGAL (Dec 20/Euro)B.EspSanto 0.91 - 1.06 0.43 - - 16842BCPort 0.08 0.22 0.06 - - 55237BncoBPI 0.99xr +.04 0.99 0.34 - - 2218BRISA 2.04 +.01 2.79 1.62 15.2 - 78Cimpor 3.29 -.03 5.70 2.93 5 - 49EDP 2.35 +.06 2.48 1.63 7.9 7.8 8428GalpEnerg 11.88 +.02 13.78 8.33 1 26 1390JeronimoM 14.86 -.05 16.07 11.26 1.9 26.2 410PortTlcm 3.82 -.04 4.61 3 8.5 16.8 3829Sonae 0.72 +.01 0.74 0.37 4.6 16.1 4065

RUSSIA (Dec 20/Rouble)Bank VTB @ 0.05 0.07 0.05 1.5 8.3 38901840GazProm @ 142.75 +2.59 200.80 136.50 6.3 3.1 52707GMK Noril @ 5.75k +67 6k 4.5k 3.4 8.8 595Gzprm neft @ 146.50 +.99 177.25 119.20 5 3.8 146Lukoil @ 2.04kxd +32.5 2.05k 1.55k 2 5.2 954MTS 242.63 -1.09 257.29 176.40 6.1 25.4 451Novatek @ 346 +1.07 442.73 269.66 1.9 8.1 1012NovoSteel 62.64 +.6 79.69 46.59 3.2 15.6 4953Rosneft @ 261.99 -.3 264.39 184.61 1.3 6.5 3556RusHydro 0.75 1.21 0.71 1 27.3 374896SbankR @ 94.69 +.16 103.85 75.30 2.2 6.3 62421Severstal 378.30xd +3.2 456.70 330.20 3.3 7.9 2096Surgnfgz @ 27.29 -.19 33.89 24.03 2.2 4.1 19550

SINGAPORE (Dec 20/S$)Capitalnd 3.71 +.08 3.77 2.18 2.2 13.8 8164DBS @ 14.99 +.08 14.99 11.26 3.7 10.8 3282Jard Math @ 60.99 +1.18 63 44.70 2.1 10.9 434Jard Str @ 35.50 -.03 37.50 26.60 0.6 9.7 161Keppel 10.85 -.03 11.67 8.95 4.1 8.2 2888OCBC @ 9.82 +.02 9.82 7.80 3.2 8.8 3528SIA Ltd 11 - 11.10 10.06 1.5 48.9 600Sing Tech 3.87 - 3.89 2.62 4 20.6 875SingTel @ 3.37 +.02 3.62 3.02 4.7 13.4 19471UOB @ 19.84 +.17 20.23 15.01 3 5 1714WilmarInt 3.28 +.1 6.05 2.99 1.6 13.4 45625

SOUTH AFRICA (Dec 20/Rand)Absa 166.20 +3.32 166.20 132.20 4.3 12.8 3968AngGold 260.49 -2.51 365 251.99 1.7 71.8 2168Anglo 261.65 -2.43 350.05 230.76 2.8 - 5974AngloPlat 440.22 -.7 598.50 358.74 0.5 - 514ArclrMttal 35.05 -1.45 70.65 25.17 - - 933Firstrand @ 30.34 -.01 31.33 20.20 3.4 11.7 26539GoldFields 99.96 +.76 132.88 95.51 3.9 9.4 3029Harmony 69.78 +.94 101.82 64.10 1.3 14.2 2660Implats 164.30 +2.31 180.83 123.47 1.2 23.8 4748

Kumba Iron @ 554.28 -5.93 599.50 456.75 59581.9 0 596MTN @ 172.69 -.5 175 127 4.6 14.6 10842Naspers N @ 534.80 -3.92 577.90 340.01 0.6 39.6 2430NedbankGrp 189.58 +1.75 190.60 140.45 3.6 12.5 1434OldMut 24.79 +.12 25 16.08 14.7 - 18211SAB Mllr 394 +2.33 403.60 275.74 2.2 - 5215Sanlam 45.25 +1.3 45.50 28.30 2.9 16.5 11137Sasol @ 356.27 -4.43 411.50 333.21 4.9 9.1 3333Stanbank @ 118.64 +1.81 120 95.33 4.2 13 11738Telkom 17.13 -.06 29.75 14.91 8.5 - 772Vodacom @ 123.83 +2.21 124.27 86.61 8945 0 2720

SOUTH KOREA prices in ’000s(Dec 20/Won)HyundaiHvy 240.50 +6.5 346.50 193.50 1.7 9.7 358HyundaiMot @ 222.50 -1.5 272.50 197.50 0.8 6.9 1159HyundEng 72.60 +2.8 87.50 55.60 0.7 16.2 743HyundMobis @ 294.50 +5 328 258 0.6 8.6 282HyundStl 89 +1.4 119 74.80 0.6 8.9 422IndBkKor 11.95 +.05 14.80 10.95 4.9 7.4 1116KB Financial 38.35 +.15 45 32.50 1.9 8.3 2897Kia Motors @ 58.10 -.6 84.80 54 1 10.5 2127Korea T&G 82.50 -.4 92.30 70.20 3.9 13.5 527KoreaEP 29.80 +1.1 30.25 21.20 - - 3241KoreaExch 7.51 -.01 9.12 6.68 31.4 6.2 944KT Corp 38.45 - 39.85 27.55 5.2 7.8 1015LG Chem @ 339 +6.5 434 261.50 1.2 15.8 369LG Corp 65.10 +1 77.70 51.80 1.5 11.4 512LG Display 31.35 -.2 36.95 19.60 - - 2434LG Elect 72.70 +.5 94.30 55.80 0.3 31.6 1158LotteShop 370.50 +.5 390 273.50 0.4 11.2 72NHN 216.50 -14.5 292.50 198.50 0.2 18.9 649Posco @ 355.50 +1 427 304.50 2.7 9.5 251ShinhanFin 38.60 +.75 47.50 33.10 1.9 8 2010Shinsegae 218 +1 290 182.50 0.3 12.5 19SK Hynix @ 26.30 -.2 30.95 19.75 - - 4725SK Innov 175 +1.5 195.50 124 1.6 15.3 293SK Telecom 159 +.5 162.50 120 5.9 13.1 160SmsungCT 63.30 +.7 82.70 54.90 0.8 18.2 745SmsungEl @ 1.5k -12 1.54k 984 0.4 11.2 396SmsungEM 106 +1.5 112.50 77 0.7 16.8 459SmsungEPf 854 -9 885 614 0.6 - 51SmsungFre 218 +7.5 244.50 195.50 1.7 12.8 318SmsungSDI 156 +1.5 171.50 127 1 4.6 128WooriFin 11.70 +.35 14 9.11 2.1 5.3 4976

SPAIN (Dec 20/Euro)Abertis 12.40 -.1 12.67 9.33 5.4 8.1 2111Acciona 59.18 +.19 68.52 29.46 5.3 - 129Acerinox 8.75 +.13 11.26 7.39 6.3 - 1080ACS 19.36 +.14 25.10 10.38 10.3 - 565Banesto 3.61 +.01 4.20 1.90 7.1 - 310Bankinter 3.34 -.02 5.41 2.06 4.3 16.5 1603BanPoplr 0.63 +.02 3.68 0.53 64.2 6.2 158430BBVArg @ 7 +.01 7.35 4.31 5.6 23.8 28252BcoSabdll 2.20 -.02 2.70 1.19 1.9 40.3 10116BcoSantdr @ 6.04 +.03 6.65 3.98 10.6 31.3 87312BcoValen 0.10 0.78 0.08 - - 1575CaixaBnk 2.67 +.02 4.12 2.01 8.6 27.2 5010CorFinAlba 35.15 +.53 35.55 22.10 2.8 - 79DIA 4.92 +.02 5 3.17 2.2 19.6 4342EbroFood 15.09 -.11 15.24 12.07 3 14.2 517Enagas 16.35 -.1 16.75 12.51 6.4 10.4 1262Endesa 17.67 +.23 17.75 11.30 3.4 9.9 416FCC 10.63 +.14 20.60 7.10 12.2 18.1 407GAMESA 1.89 +.09 3.37 1.01 0.4 - 4647GasNatur 13.53 -.14 13.97 8.36 5.5 10.2 2105Grifols 24.36 +.01 26.66 11.58 - 46.4 496GrpFerrov 11.23 +.07 11.69 7.41 11.1 6.5 2792IAG 2.29 -.06 2.35 1.68 - 20.5 3695Iberdrola @ 4.11 +.03 4.98 2.63 0.7 8.4 43136Inditex @ 107.85 -.6 111.80 61.64 1.5 29.4 1942IndraSis 10.09 +.09 11.19 6.08 6.7 12.6 438Mapfre 2.37 -.03 2.65 1.29 5.1 8.5 5286MedsetEsp 5.43 -.26 5.75 3.23 2.5 34.5 2319OHL 21.70 -.17 24.15 14 2.6 8 607RedElectCp 37.86 +.34 39.75 29 5.8 10.9 450Repsol @ 16.40 -.1 24.23 10.90 6.5 10.9 11896TechReun 35.59 -.11 39.31 25.34 3.8 14.8 226Telefonica @ 10.20 -.02 13.75 7.90 7.4 7.5 39254ZardoyaO 11.01 -.1 11.19 8.09 4.2 21.5 113

SWEDEN (Dec 20/Kroner)AlfaLaval 135 - 147 110.40 2.4 17.6 687AssaAbloy 241 +3 242 158 1.9 23.2 797AstraZen 310.50 -3.2 329.80 285 6.6 9.6 819AtlasCpcoA @ 178.10 -.1 179.40 134.40 2.8 15.6 1251ElctxB 173.20 -2.2 179.40 103 3.8 19.6 1339EricssonB @ 65.15 -1.2 71.90 55.90 3.8 15.6 14858H & M @ 225.10 -.8 257.30 207 4.2 21.8 2114IndVardenA 107.50 -.3 109.20 79.55 4.2 3.2 117InvestorB 166.80 +.9 166.90 121.70 3.6 4.9 1306Kinnevik 133.20 +.3 155.20 120.30 4.1 9.3 628NordeaBk @ 62.15 +.6 66.95 49.46 3.6 9.7 7021Sandvik 103 -.3 108 77.40 3.2 15.7 2064ScaniaA 131.60 - 140 93 3.8 - 6ScaniaB 135.90 -.2 142.20 93.80 3.7 15.8 633SEB @ 55.90 +.45 57.95 37.75 3.1 11.3 4698SkanskaB 110.50 +.4 125.90 93.30 5.4 14.2 945SKF B 163 +.2 174.80 126.20 3.4 15.1 1071SSAB A 57.45 -.15 76.60 45.10 3.5 - 1589SvenCellB 140.50 +.7 140.80 96.95 3 - 1779SvenskaHn @ 233.40 +.6 249.90 174.10 4.2 11.2 1590Swedbank @ 127.70 +2 128 84.35 4.2 13.9 2845SwedMatch 218.70 -3.5 294.50 214.60 3 15.8 1076Tele2B 117.80 -.5 130.39 102.30 11 13.1 1155TeliaSonra @ 44.30 -.08 49.65 41.03 6.4 10.7 6623VolvoA 90.40 +.2 100.50 69.65 3.3 - 151VolvoB @ 90.15 -.25 100.40 69.40 3.3 12.1 5361

SWITZERLAND (Dec 20/Frs)ABB Ltd @ 18.95 -.02 20.20 14.45 3.4 15.8 4579Actelion 45.07 -.11 48.72 30.27 1.8 17.6 350Adecco 48.75 +.1 49.62 36.13 3.7 16 857Baloise 79.70 -.65 80.65 58.30 5.6 48.9 261

CredSuisse @ 23.06 +.1 27.53 15.97 3.3 - 5241GAM Hldgs 12.65 -.15 13.80 9.80 4 - 650Givaudan 970.50 -4.5 977 830 2.3 26.7 18Holcim @ 67.55 +.7 67.95 48.60 1.5 65.6 917JulBaerGp 33.77xr +.02 38.33 29.34 2.9 23.8 506Kuhn&Nag 110.80 +.6 125 93.10 3.5 26.4 232Logitech 7.15 +.03 9.90 5.83 11 14.9 859Lonza Grp 49.94 +.41 62.30 32.81 4.3 17.3 306Nestle @ 60 -.15 62.30 51.05 3.3 19.4 5480NobelBiocr 7.84 +.02 13.56 7.09 1.9 16.7 733Novartis @ 57.95 -.5 59.45 48.29 3.9 17.4 5630Pargesa 63.50 -.35 68.80 51.05 4 9 31Richemont @ 72.25 +.1 74.85 44.68 0.8 17.4 1048Roche @ 185 -2.1 190.80 148.40 3.7 18.9 1704Roche Br 187.50 -3 193.80 156.10 3.6 - 38Schindler 130.30 - 130.50 104.10 1.5 27.6 19SchndlerPC 132.10 +.1 132.70 102.60 1.5 - 54SGS SA 2.06k -1 2.16k 1.48k 3.2 29.5 9Sonova 103 -.8 107.40 83.30 1.2 23.5 155SwatchGpI @ 467.20 +1.2 471.50 319.10 1.2 - 142SwatchGpN 79.50 -.45 80.40 56.90 1.4 - 126Swiss Re @ 66.90 -.05 68.10 45.80 4.5 6.2 829Swisscom @ 396.60 -.6 400 334.40 5.5 38 77SwissLife 123.40 -.8 131 74.35 7.3 7 146Syngent @ 374.90 -1.6 380.20 255.20 2.1 21.7 133Transocean 41.93 -.42 54.30 36.02 5.2 - 584UBS @ 15.03 -.17 15.62 9.69 0.7 - 12261ZurichFin @ 243.90 -.4 246.80 192.50 7 11.7 295

TAIWAN (Dec 20/T$)Acer 24.45 -.4 46.15 22.30 - - 15Au Optrncs 14.15 +.1 18 8.19 - - 158CathayFin 31.15 -.9 35.24 26.48 1.5 26.9 34ChimeiInn 17.50xr +.75 17.50 8.45 - - 171ChinaSteel 26.45xa - 30.44 24 3.8 - 14Chinatst Fin 17.50 -.3 19.12 14.20 2.1 11.6 33ChnghwTl @ 93.60 -.1 101.50 87.50 5.8 17.7 6CompalElc 19 -.2 35.80 17.30 7.4 11.5 14DeltaElc 103.50 -3.5 114.50 63.20 3.4 16.8 8FormoC&F 70 -.8 93.70 58.70 5.7 - 5FormPlastic 77.30 -1 93.90 67.40 5.2 37.5 5FubonFnH 33.85 -.65 34.50 26.29 2.8 14.7 16HonHaiPrc @ 88.10 -.5 106.36 70.27 1.5 11.2 47HTC 275.50 +1 672 191 14.5 8.6 14MediaTek 323 -4 351 235 2.8 27.7 9Mega Fin 22.60xc -.3 24.14 17.34 3.7 12.2 30NanYaPlast 54.40 -1.6 72.80 46 3.9 - 6Quanta Cmp 66.90 -.3 86.40 57.10 6 10.6 10TaiwanMob 104 -2 115.50 86.30 6 19.3 4TaiwanPet @ 87 -1.8 97 77.50 2.3 - 1TaiwanSem @ 96 -1.3 99.40 72 3.1 15.9 36Utd Micro 11.70 +.2 15.75 10 4.3 19.2 145

THAILAND (Dec 20/Baht)Adv Info @ 207 -4 227 138.50 4.9 20.5 4642100Bangkk Bk 197 - 203 146 3 12.3 3834200PTT @ 333 - 369 300 3.2 9.6 2579200PTT Exp 161.50 +.5 187 147.50 3.5 9.1 8688100SiamCem 424 - 426 310 2.7 25.6 1779200SiamComBk @ 179.50 +1 179.50 109 1.9 16.4 7261200

TURKEY (Dec 20/Tk Lira)Akbank 8.70 -.06 9.02 5.28 1.2 14 9847KOC Hold. 9.02 +.12 9.44 5.33 1.3 10.5 3254Sabanci 9.76 +.08 10.30 5.24 1 13 1821TGaBan @ 9.08 -.12 9.46 5.44 1.6 10.9 15042Trk.Isbank 6.12 +.04 6.24 3.14 2 8.6 26587TrkHalkBk 17.35 -.25 18.10 9.20 99.7 9.1 9213Turkcell 11.20 +.2 11.70 8.04 - 12.6 9480TurkTelek 6.74 -.02 8.38 6.24 8 9 2792YapiKred 5.10 -.06 5.34 2.48 - 10.6 14011

Li & Fung 13.62 -.14 20.15 11.46 3.6 18.9 14955MTR @ 30.70 -.05 31.35 24.30 2.5 14.2 1500NewWorld 12.22xd -.06 13.20 6.13 0.2 6.4 10659PetroChina @ 11.02 +.02 11.92 8.85 3.6 13.8 64320PowerAst @ 64.95 -.05 69.20 52.55 3.6 14.8 3037SHK Props @ 116.90 +.1 122 85.30 2.9 7 2220Sino Land 14.08 - 14.94 9.90 3.3 8.3 1972Sinopec @ 8.87 +.07 9.67 6.38 4.2 11.4 69410Swire Pacifi c @ 93.80 +.1 97.25 71.21 3.6 8.5 1329SwirePac B 17.70 - 18.50 13.56 3.8 4.1 353Tencent @ 249 -.4 281 149.40 0.3 31.1 3344WharfHld @ 60.15 +.05 61.50 33.25 1.9 4.6 3608Wheelock 38.80 +.1 39.85 17.87 1.8 3 1284

INDIA (Dec 20/Rupee)BharatHvy 232 -1.45 328.35 195.05 2.8 8 237BhrtiAirtel @ 316.90 +.95 400.90 238.50 0.3 34.4 254CairnInd 320.15 -4.55 400.95 290.25 1.6 5.8 344CoalIndia 356.40 -.75 386 293.75 0.1 14.4 126GAIL 350.60 +.4 401 303.10 2.5 12 41HDFC Bk @ 683 -4.4 705 400.45 0.6 27.4 400HsngDevFin @ 831.45 +.7 882 600.85 1.3 20.7 128ICICI Bk @ 1.14k -.35 1.16k 641 1.4 15.5 128IndianOil 259.60 -2.2 291.75 239 1.9 27.2 13Infosys @ 2.3k +3.45 2.98k 2.1k 2 14.1 79ITC @ 287.70 -2.4 306.50 192.25 0.8 35.4 427JindalS&P 470.80 +10.45 663.40 321.10 0.3 12.7 277Larsen&T @ 1.62k -16.7 1.72k 971 1 20.1 240M M T C 645.75 -5.85 1.01k 438.55 0 - 10NatlThmPr 154.05 -.7 190.30 138.95 2.6 12.3 277NMDC 160.50 -2.15 206.35 136.15 3.4 9 423OilNatGas @ 265.05 +.7 303.90 240.10 3.7 9.3 160RelianceIn @ 837.05 -2.3 881 671 0.7 14.7 312SBI NewA @ 2.38k +11.2 2.47k 1.58k 1.5 8.3 371SteelAuthr 91.45 +.8 115.90 73 2.2 11 603Sterlite 120.85 +1.05 138.40 86.10 1.7 7.9 1151TAMO 305.35 -2.2 320.60 169.20 1.3 7 927TataCnslty @ 1.25k +15.6 1.44k 1.04k 2 20 80TataSteel 431.40 +8.05 500.90 332.35 2.8 - 1604Wipro @ 382.10 -3.5 452.50 325.60 1.6 15.3 85

INDONESIA prices in ’000s(Dec 20/Rupiah)AdaroEgy 1.56 -.02 2.03 1.18 5 10 23445Astra Int @ 7.50 -.2 8.30 6.12 2.7 16 25080Bk Negara 3.68 - 4.23 3.33 1.7 38.8 11616BkCentAsia @ 9.20 +.15 9.50 6.75 1.2 19.6 12844BkMandiri @ 8 - 8.90 6 1.3 13.1 16669BkRakyat @ 6.90 -.05 7.85 5.15 1.8 9.4 21529Gudang Grm 57 -1.6 63.80 45.90 1.8 26.7 792Telkom @ 9 +.1 9.95 6.60 4.1 13.8 22906Unilever @ 20.55 -1 28.50 17.50 2.9 32.7 8256

IRELAND (Dec 20/Euro)Aer Lingus 1.07 +.01 1.18 0.63 2.8 8.9 1177BkofIrelnd 0.11 0.16 0.07 - 5.7 72628CRH 15.24 +.2 16.93 12.81 4.1 18.6 1430Elan Crp 7.97 -.08 12.01 7.50 - - 372GraftonGrp 3.79 +.03 3.83 2.28 2 - 10Ind News 0.03 +.01 0.35 0.01 - - 198Irish Lf 0.03 + 0.08 0.02 - - 130Kerry Gp 40.90 +.18 41.76 27.07 0.8 22.2 148Ryanair 4.77 -.01 4.95 3.38 7.1 11.1 2533

ITALY (Dec 20/Euro)A2A 0.43 + 0.80 0.29 3 - 22190Acea 4.61 +.09 5.43 3.61 6.1 12.4 186Atlantia 13.95 +.27 13.98 9.03 5.2 11.3 2850Autogrill 8.67 +.32 8.70 5.99 3.2 21.3 2945BcaCarige 0.77 -.01 1.58 0.50 9.1 7.8 1255BcaMilano 0.45 + 0.54 0.25 7.1 - 53881BcaPEmilR 5.26 -.02 6.65 2.80 0.6 8.1 1885BcoPoplre 1.27 +.02 1.70 0.79 - - 17185BcPSondrio 4.52 + 6.85 3.76 2 8.3 483BuzziUnicm 10.48 -.06 10.68 6.26 0.5 47.1 1057Campari 5.80 -.05 6.55 5 1.2 24.9 3741CredEmil 4.06 - 4.25 2.30 2.5 13.3 291ENEL @ 3.17 +.04 3.33 2.02 8.2 8.6 45891ENI @ 18.50 -.02 18.72 14.93 5.7 8.8 12657ERG 7.60 +.3 8.99 4.28 5.3 7.3 908Exor 19.05 -.05 21.50 14.01 1.8 13.5 313Fiat 3.86 +.05 4.93 3.25 - 16.2 16111Fiat Ind 8.38 +.04 8.85 6.10 2.2 13.5 3569Finmecnca 4.40 +.11 4.46 2.56 - - 10117Generali @ 13.75 +.22 13.77 8.16 1.5 18.2 10980IntSanPSvg 1.08 +.01 1.39 0.68 - 5.2 5110IntSPaolo @ 1.31 - 1.65 0.85 - - 146611Italcementi 4.28 - 6.10 3.08 2.8 - 585Lottomatica 17.51 +.09 18.35 10.85 4.1 13.9 491Luxottca 31.46 -.21 32.40 20.31 1.6 27.6 1156Meddiolan. 3.82 +.04 3.94 2.18 3.7 9.4 2038Mediaset 1.61 +.06 2.58 1.14 6.2 - 26911Mediobnca 4.65 +.12 5.14 2.34 1.1 29.5 12579MontePsS 0.22 0.44 0.14 9.3 - 153325Parmalat 1.78 + 1.86 1.27 5.6 14.7 1484Pirelli&C 8.70 -.06 9.83 6.21 3.1 8.2 9226Prysmian 14.81 +.13 15.48 9.35 1.4 18.9 1400Saipem @ 29.03 -.55 40.12 28.01 2.4 13 3696Saras 1.03 -.01 1.26 0.66 - - 1979Snam 3.48 +.01 3.74 3.07 6.9 15.6 10286TelcmItalR 0.61 -.01 0.76 0.51 8.9 7.6 13070TelecmItal @ 0.69 -.01 0.93 0.60 6.3 - 87680TERNA 3.03 +.02 3.06 2.50 6.6 12.7 6952TODS 97.10 +1.7 98.50 60.45 2.6 20.6 168UBI Banca 3.51 -.02 4.12 1.82 1.4 - 20135UniCred @ 3.80 -.01 5.02 2.20 5.2 12.7 86837

JAPAN prices in ’000s(Dec 20/Yen)Aeon 0.96 1.11 0.84 1.3 11.3 3163Ajinomoto 1.16 -.02 1.24 0.90 1.4 16.9 2908AozoraBk 0.27 0.27 0.15 3.4 11 10029Asahi Glass 0.64 -.01 0.76 0.42 4.1 15.2 9481AstellasPh @ 4.01 -.05 4.21 3 3.2 19.1 2389

Bridgestne @ 2.19 +.05 2.20 1.60 1.3 10.3 5382Canon @ 3.36 -.1 4.02 2.31 3.6 19.1 10435ChubuElec 1.16 1.58 0.80 4.8 - 6480Chugai Ph 1.66 -.01 1.72 1.18 2.4 21.6 1062CntJpRwy @ 6.85xa -.02 7.14 6.10 1.5 7.3 526DaikinInd 2.90 -.05 2.97 1.84 1.2 38.3 3036DaiNpPrnt 0.64 0.87 0.50 5 37.5 3990DaiSankyo 1.31 -.01 1.58 1.17 4.6 18.6 3754DaiwaSec 0.45 + 0.45 0.24 1.3 51.9 23295Denso @ 2.92 -.01 2.95 2.02 1.7 18.7 3859EastJpRwy @ 5.58 +.07 5.62 4.48 2.1 12.6 1698Eisai 3.56 +.03 3.71 3.06 4.2 17.9 2660Fanuc @ 15.07 -.33 15.63 11.24 1.3 27.3 1704FastRetail @ 20.37 -.86 21.33 13.22 1.3 26.2 1030FujiFilmH 1.69 -.03 2.10 1.24 2.2 21 5902Fujtsu 0.35 + 0.45 0.27 2.9 28.7 19295Hitachi @ 0.49 -.01 0.56 0.40 2 11.5 36140Honda Mt @ 3.02 -.06 3.30 2.24 2.3 14.6 10046Hoya 1.66 +.01 1.94 1.52 3.9 12 2424Inpex @ 455 -11 611 418.50 1.6 9.1 25Itochu 0.91 +.01 0.97 0.75 5.2 5.1 19906JapanTob @ 2.43xa +.03 2.58 1.80 2.5 15 4717JFE 1.51 -.01 1.88 0.94 0.7 26.6 6465JX Hldgs 0.47 - 0.54 0.35 3.4 8.4 14118KansaiEP 0.92 +.02 1.45 0.48 3.3 - 15329Kao Corp 2.21 -.05 2.39 1.97 2.8 19.4 4298KDDI Cp @ 6.04xa -.04 6.40 4.74 2.8 14.6 1863Keyence 23.29 +.02 24 16.44 0.2 27.9 262KirinHldgs 1.02 1.09 0.86 2.7 20.6 3891Komatsu @ 2.09 -.01 2.51 1.44 2.1 13.1 7459Kubota 0.96 -.02 0.99 0.61 1.7 19 7573Kyocera 7.65 +.01 8.03 6 1.6 20.4 2376Kyushu EP 0.96 +.05 1.27 0.45 2.1 - 7383Marubeni 0.61 + 0.65 0.45 3.6 5.3 19636MitsubElec 0.76 +.02 0.79 0.56 1.4 13.6 19585MitsubEst @ 1.84 +.03 1.85 1.12 0.7 51.2 7525MitsubHvy 0.40 0.41 0.29 1.5 24.7 22373Mitsubishi @ 1.66 +.03 2.04 1.33 3.5 7.8 13955MitsubTk @ 0.44 +.01 0.45 0.32 2.7 9.3 179174Mitsui @ 1.26 +.02 1.44 1.04 4 7.4 19216MitsuiFud @ 1.99 +.03 2 1.09 1.1 31.4 6516MitsuiSmIns 1.67 +.01 1.81 1.14 3.2 - 3270Mizuho @ 0.15 - 0.15 0.10 4.1 7.1 386917Murata Mfg 4.87 +.02 5.13 3.61 2.1 33.2 35NEC 0.17 - 0.18 0.10 - 21.7 17143Nintendo @ 8.75 -.22 13.08 8.06 1.1 - 82NipStlSuMet 0.21 + 0.25 0.14 0.5 - 84039Nissan Mt @ 0.78 -.06 0.91 0.64 2.9 11 55446Nitto Denko 4.23 +.07 4.39 2.65 2.4 16.3 1225NKSJ 1.87 + 2.05 1.39 4.3 - 1719Nomura 0.43 +.01 0.44 0.23 0.9 32.7 144496NTT @ 3.64 +.01 4.02 3.27 4.1 9.1 3317NTT Data 257.70 -2.5 294.20 213.30 2.3 19 9NTTDCMo @ 122.60 -.5 144.40 111.90 4.7 10.6 69Orix 9.30 +.02 9.36 6.22 1 9.3 947Panasonic 0.51 +.01 0.78 0.38 1 - 41638Resona 0.38 + 0.42 0.28 3.2 4.1 25758Ricoh 0.94 -.04 0.98 0.49 2.2 21.1 20550Rohm 2.79 +.06 4.24 2.16 1.6 - 22Secom 4.23 -.03 4.29 3.33 2.1 15.5 1558SekisuiHse 0.91 0.92 0.64 2.4 13.9 6503Seven & I @ 2.41 + 2.66 2.08 2.7 14.9 4003Sharp 0.30 -.01 0.73 0.14 1.7 - 142433ShnEtsuCh @ 5.13 +.05 5.22 3.63 1.9 21.1 2360SMC Cp 15.43 +.21 15.66 11.61 0.9 20.5 336Softbank @ 3 -.12 3.34 2.05 2 10.3 7486Sony 0.92 -.02 1.83 0.77 2.7 46.5 16589SonyFinH 1.51 + 1.55 1.08 1.3 17.7 881SumitChm 0.27 0.37 0.19 3.3 60.4 15148SumitoEle 0.98 -.01 1.17 0.78 2 17.3 5063SumitomMI 0.12 - 0.18 0.10 1.7 - Sumitomo 1.09 + 1.28 0.98 4.7 5.5 10679SumitomoF @ 3.04 +.03 3.09 2.11 3.3 7.9 14494Suzuki Mt 2.12 -.01 2.17 1.33 0.8 16.5 4475T&D Hld 0.98 -.01 1.06 0.70 2.3 18.6 3604Takeda Ph @ 3.88 +.01 3.89 3.16 4.6 19.7 2859TDK 3.10 -.06 4.84 2.72 2.6 20.1 2761Terumo 3.44 -.15 4.06 2.76 1.3 19.5 1921Tohoku EP 0.84 +.02 1.01 0.45 - - 6475TokioElPw 0.23 + 0.26 0.12 - - 96141TokioMrne @ 2.40 +.06 2.40 1.65 2.2 20.5 5996Tokyo Elcn 3.80 -.05 4.94 3.16 1.4 - 1675TokyoGas 0.41 + 0.44 0.34 2.2 10.7 14198Toshiba 0.31 0.38 0.23 2.6 11.9 38568Toyota @ 3.88 +.03 3.94 2.47 1.5 - 13625Toyota Ind 2.63 +.01 2.65 1.97 1.9 16.8 703WstJpnRwy 3.41 +.01 3.53 3.04 3.1 12 799Yahoo Jpn @ 28.08 -.26 30.45 21.65 1.2 15.1 110YokohaBk 0.40 0.42 0.34 2.5 9.7 7817

MALAYSIA (Dec 20/Ringgit)AxiataGp @ 6.68 +.08 6.83 4.65 3.4 23 6350CIMB Grp @ 7.68 +.03 7.96 6.85 2 13 5167Digi.com 5.36 +.08 5.48 3.54 5.7 30.8 9057Genting 9.09 -.09 11.32 8.55 0.9 14.7 6814Genting Mly 3.60 -.02 4.12 3.28 2.4 15.6 2490IOI Corp. 5 +.04 5.55 4.82 3.1 15 4513KL Kpng 21.80 +.02 26.76 17 3 18.6 1476MalayBnkng @ 9.05 +.06 9.56 8.16 7.5 12.6 6992Maxis 6.56xd -.03 7.10 5.41 4.9 20.7 3229MISC 4.08 +.01 6.21 3.86 - - 542PetChem 6.20 - 7.03 5.63 2.6 - 4858PetGas 19.24 +.16 20.26 13.82 2.1 - 511PPB Grp 11.24 +.02 17.98 11.16 1.8 17.9 1946Public Bk 16.04 +.04 16.06 12.82 3 15 1092Public BkF 16.24 +.22 16.24 12.82 3 - 1004SimeDarby @ 9.36 -.03 10.26 8.83 3.7 13.8 8144TelekmMala 5.95 +.04 6.40 4.43 8.3 14.2 3549Tenaga Nsl 6.83xd +.03 7.22 5.40 2.3 8.8 11012YTL Power 1.51 -.01 1.90 1.50 2.5 8.9 2804

MEXICO (Dec 20 / 12:00 am/Peso)AmerMvl @ 14.92 -.04 18.72 14.70 1.3 12.4 19529CemxCPO 12.80 +.05 12.87 6.30 7.3 - 18597FEMSA UBD @ 127.66 -.14 131.07 88.42 1.5 33.7 537GrpElektra 557.19 +4.19 1.46k 407 0.4 - 22GrpMexico @ 46.59 +.05 47.36 34.65 3.5 - 3385

Thursday stock close Day’s traded m’s price changeMicrosoft 21.5 27.42 +0.11Facebook 18.2 27.44 +0.03RschMt 16.8 13.80 +0.17Intel 15.5 20.94 -0.16Oracle Corp 13.1 33.99 -0.10Yahoo 12.7 19.52 -0.08Cisco Systems 12.4 20.17 -0.10Bed Bath Bynd 11.2 55.21 -5.08Bank of Am 10.8 11.37 +0.18Activision 9.4 10.66 -0.19

BIGGEST MOVERSThursday Close Day’s Day’s price change chng%UpsNYSE Euronext 32.00 7.95 +33.06Jabil Circuit 20.28 1.71 +9.21EQT 59.64 2.63 +4.61Ameren 31.13 1.08 +3.59DownsBed Bath Bynd 55.21 -5.08 -8.42Carnival 36.84 -2.20 -5.64GameStop 26.05 -1.50 -5.44Discover 37.62 -2.15 -5.41Based on the constituents of the S&P500 and the Nasdaq 100 index

Thursday stock close Day’s traded m’s price changeLlydsBkg 122.4 49.25 +0.05Vodafone 86.5 155.80 -0.85Barclays 31.7 266.80 +0.25HSBC 24.3 650.00 -3.00Man 20.3 86.50 +3.00Centamin 17.6 42.71 +1.25BP 17.2 430.10 -1.20Tesco 15.7 338.60 -1.65ITV 14.5 107.00 +3.20BT 14.3 242.40 +1.30

BIGGEST MOVERSThursday Close Day’s Day’s price change chng%UpsVesuvius 352.00 28 +8.64Talvivaara 106.70 5.40 +5.33PERFORM 389.60 19.60 +5.30Genus 1,431.00 52 +3.77DownsCarnival 2,391.00 -154 -6.05NewWldRes 294.90 -13.60 -4.41EVRAZ 267.00 -11.40 -4.10Ferrexpo 249.50 -8.40 -3.26Based on the constituents of the FTSE 350 index

Thursday Turnover close Day’s Euro/m’s price changeBcoSantdr 526.9 6.04 +0.03Telefonica 400.2 10.20 -0.02Unicredit 329.6 3.80 -0.01Sanofi 264.6 72.00 +0.86Eni 234.2 18.50 -0.02Inditex 209.5 107.85 -0.60Total 198.2 38.97 -0.24BASF 198.1 72.30 -0.79BBVA 197.8 7.00 +0.01Repsol-Ypf 195.1 16.40 -0.10

BIGGEST MOVERSThursday Close Day’s Day’s price change chng%UpsBanPoplr 0.63 +0.02 +2.77EDP 2.35 +0.06 +2.75Coca-Cola HBC 17.30 +0.45 +2.67Mediobanca 4.65 +0.12 +2.56DownsKPN 3.60 -0.12 -3.15Cap Gemini 33.56 -0.93 -2.68Saipem 29.03 -0.55 -1.86Thyssen Krupp 18.24 -0.34 -1.80Based on the constituents of the FTSEurofi rst 300 Eurozone index

Thursday stock close Day’s traded m’s price changeMizuho Fin 386.9 147 -MUFG 179.2 440 +5Nomura Hldg 144.5 429 +9Sharp Corporat 142.4 302 -5TEPCO 96.1 233 +3Nippon Steel 84.0 209 +1Mazda Motor 70.9 150 -Kobe Steel 69.3 104 +1Shinsei Bank 56.3 152 +4NISSAN MOTOR 55.4 782 -62

BIGGEST MOVERSThursday Close Day’s Day’s price change chng%UpsShinsei Bank 152 4 +2.70Tokio Marin 2399 62 +2.65MitsubishiEle 761 17 +2.28BRIDGESTONE 2185 47 +2.20DownsNISSAN MOTOR 782 -62 -7.35KONAMI 1964 -131 -6.25MITSUBISHI MOTOR 86 -5 -5.49Unitika 44 -2 -4.35Based on the constituents of the Nikkei 225 index

Dec 20

3040

1706

1186

148

112

10

NYSE EuronextShare Price

Nov 20 2012/2012 Dec 20

VesuviusShare Price

Nov 20 2012/2012 Dec 20

KPNShare Price

Nov 20 2012/2012 Dec 20

NISSAN MOTORShare Price

Nov 20 2012/2012 Dec 20

n AMERICAACTIVE STOCKS

n LONDONACTIVE STOCKS

n EURO MARKETSACTIVE STOCKS

n TOKYOACTIVE STOCKS

Dec 19

3125

1489

1509

127

181

15

Dec 18

3126

2248

793

85

194

20

Issues Traded

Rises

Falls

Unchanged

New Highs

New Lows

Changeon day

7.95

Changeon day 28.00

Changeon day -0.12

Market data provided byMarket data provided by

Market data provided byMarket data provided by

Changeon day -62.00

n MAJOR MARKET VOLUMES

5 day Dec 20 Dec 19 average

NYSE 266 747 640NASDAQ 775 1946 1690UK 2762 3178 2775France 198 207 209Germany (u) 186 152Japan 3048 3248 2836Volumes are rounded to nearest million.

n MAJOR INDICES-HIGHS & LOWSDec 20 Day’s Day’s Open Close high lowDJ Ind 13246.67 13246.25 13270.56 13216.03Nasdaq Cmp 3050.30 3039.76 3050.52 3034.15S&P 500 1435.81 1436.93 1438.96 1432.82FTSE E300 1143.04 1142.80 1143.52 1139.80FTSE 100 5961.59 5958.34 5970.87 5950.07FTSE All Sh 3122.32 3121.27 3126.67 3117.22CAC 40 3652.41 3666.73 3674.57 3652.08XETRA DAX 7642.99 7672.10 7675.45 7635.39Topix 837.38 838.61 845.67 834.96Nikkei 10093.11 10039.33 10147.68 10028.65Hang Seng 22602.99 22659.78 22661.74 22483.95SMI 6921.99 6912.79 6930.34 6908.32AEX 344.60 346.60 346.86 344.40

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 21 2012 Section:Stats Time: 20/12/2012 - 19:19 User: sheehanr Page Name: WSM1 USA, Part,Page,Edition: EUR, 22, 1

FINANCIAL TIMES FRIDAY DECEMBER 21 2012 ★ 23

MARKET DATA

Argentina Merval 2850.78 2843.96

Australia ALL ORDINARIES 4646.63 4633.25 S&P/ASX 200 Res 4298.08 4313.83 S&P/ASX 200 4634.11 4617.78

Austria ATX 2411.77 2427.37

Belgium BEL 20 2492.20 2500.66 BEL Mid 3944.72 3953.70

Brazil Bovespa 60711.84 60998.34

Canada S&P/TSX Met & Min 990.91 1003.96 S&P/TSX 60 708.51 712.14 S&P/TSX Comp 12339.69 12403.63

Chile IGPA Gen 20955.54 20979.44

China Shanghai A 2270.67 2264.25 Shanghai B 230.81 230.44 Shanghai Comp 2168.35 2162.24 Shenzhen A 864.16 859.06 Shenzhen B 646.63 645.42 FTSE A200 6621.97 6585.33 FTSE B35 8112.72 8096.01

Colombia CSE Index 14546.21 14646.38

Croatia CROBEX 1729.07 1718.28

Cyprus CSE M&P Gen 111.38 115.62

Czech Republic PX 1033.79 1041.29

Denmark OMXC Copenhagen 20 495.72 493.74

Egypt EGX 30 5443.00 5419.81

Estonia OMX Tallinn 726.27 720.84

Finland OMX Helsinki General 5893.41 5888.15

France CAC 40 3666.73 3664.59 SBF 120 2814.53 2813.88

Germany M-DAX 12069.57 12086.11 XETRA Dax 7672.10 7668.50 TecDAX 839.44 839.29

Greece Athens Gen 880.70 878.41 FTSE/ASE 20 302.76 305.04

Hong Kong Hang Seng 22659.78 22623.37 HS China Enterprise 11352.45 11388.40 HSCC Red Chip 4505.06 4499.92

Hungary Bux 17862.10 17807.41

India BSE Sens 19453.92 19476.00 S&P CNX 500 4746.40 4755.30

Indonesia Jakarta Comp 4254.82 4275.86

Ireland ISEQ Overall 3396.41 3387.61

Dec Dec 20 19

Israel Tel Aviv 100 1077.32 1079.37

Italy FTSE MIB 16399.36 16332.50 FTSE Italia Mid Cap 17655.56 17583.89 FTSE Italia All-Sh 17299.67 17237.17

Japan Nikkei 225 10039.33 10160.40 Topix 838.61 839.34 S&P Topix 150 711.99 713.15 2nd Section 2416.24 2409.79

Jordan Amman SE 4499.30 4512.30

Kenya NSE 20 4127.60 4124.06

Latvia OMX Riga 389.60 388.66

Lithuania OMX Vilnius 352.38 351.76

Luxenbourg Luxembourg General 854.18 851.90

Malaysia FTSE Bursa KLCI 1670.60 1665.64

Mexico IPC 43764.48 43647.99

Morocco MASI 9682.78 9673.14

Netherlands AEX 346.60 345.14 AEX All Share 534.25 532.32

New Zealand NZX 50 4075.45 4023.00

Nigeria SE All Share 27508.09 27349.11

Norway Oslo All Share 492.22 495.91

Pakistan KSE 100 16908.02 16869.83

Philippines Manila Comp 5797.74 5752.39

Poland Wig 47701.82 47920.75

Portugal PSI General 2357.92 2353.36 PSI 20 5746.47 5731.08

Romania BET Index 4932.96 4915.17

Russia RTS 1528.19 1517.39 Micex Index 1489.69 1477.69

Singapore FTSE Straits Times 3175.52 3158.57

Slovakia SAX 191.20 191.97

Slovenia SBI TOP 626.32 618.90

South Africa FTSE/JSE All Share 39220.96 39164.84 FTSE/JSE Top 40 34797.93 34724.82 FTSE/JSE Res 20 51339.84 51463.59

South Korea Kospi 1999.50 (u) Kospi 200 264.78 (u)

Spain Madrid SE 832.33 831.87 IBEX 35 8264.20 8264.20

Sri Lanka CSE All Share 5527.36 5512.66

Sweden OMX Stockholm 30 1108.07 1108.94 OMX Stockholm AS 344.39 344.72

Switzerland SMI Index 6912.79 6946.07

Taiwan Weighted Pr 7595.46 7677.47

Thailand Bangkok SET 1377.40 1378.40

Turkey ISE 100 76814.43 76810.26

UK FTSE 100 5958.34 5961.59 FT30 2206.10 2199.10 FTSE All Share 3121.27 3122.32 FTSE techMARK 100 2499.59 2492.06 FTSE4Good UK (u) 5053.70

USA S&P 500 1436.93 1435.81 FTSE Nasdaq 5000 8080.40 8095.93 Nasdaq Cmp 3039.76 3044.36 Nasdaq 100 2684.13 2690.99 Russell 2000 849.75 847.89 NYSE Comp. 8473.78 8463.82 Wilshire 5000 (u) 15079.30 DJ Industrial 13246.25 13251.97 DJ composite 4482.74 4480.69 DJ Transport 5328.47 5320.78 DJ Utilities 458.07 458.14

Venezuela IBC 465312.94 465312.94

Vietnam VNI 399.68 398.59

Cross-Border Stoxx 50 € 2595.39 2598.33 Euro Stoxx 50 € 2658.30 2654.69 DJ Global Titans $ 196.65 196.76 Euronext 100 ID 687.00 686.79 FTSE Multinatls $ (u) 1231.72 FTSE Global 100 $ 1075.27 1077.30 FTSE4Good Glob $ (u) 4561.53 FTSE E300 1142.80 1142.13 FTSEurofirst 80 € 3479.95 3477.02 FTSEurofirst 100 € 3426.59 3422.77 FTSE Latibex Top € 4553.70 4555.10 FTSE Eurotop 100 2341.28 2341.43 FTSE Gold Min $ (u) 2771.42 FTSE All World (u) 225.28 FTSE World $ (u) 394.02 MSCI All World $ (u) 1348.90 MSCI ACWI Fr$ (u) 341.96 MSCI Europe € (u) 1158.24 MSCI Pacific $ 2108.12 (u) S&P Global 1200 $ 1515.06 1514.35 S&P Europe 350 € 1151.78 1151.13 S&P Euro € 1113.33 1112.35

Country Index Dec Dec 20 19

Dec Dec 20 19

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 7238 383.57 0.2 5.8 14.6 487.25 17.8 2.7 Oil & Gas 175 433.50 0.1 3.7 2.0 600.65 5.0 3.1

Oil & Gas Producers 126 397.44 0.1 3.7 1.2 558.14 4.4 3.2Oil Equipment & Services 40 437.54 0.0 3.1 6.9 562.04 9.2 2.4Basic Materials 294 504.80 0.3 8.8 6.4 680.26 9.5 2.8Chemicals 109 555.53 0.4 9.2 18.5 758.57 21.7 2.6Forestry & Paper 15 174.07 0.5 10.2 11.9 254.92 15.7 3.3Mining 78 999.73 -0.1 7.8 -3.1 1316.10 -0.3 2.8Industrials 514 250.29 0.4 6.9 16.3 325.10 19.2 2.5Construction & Materials 110 393.89 1.1 10.7 19.4 536.11 22.9 2.7Aerospace & Defense 27 325.96 0.2 7.5 14.6 421.92 17.6 2.5General Industrial 52 174.33 -0.6 5.0 18.6 239.85 21.8 2.8Electronic & Electrical Equipment 70 254.34 0.8 5.5 19.1 308.45 21.6 2.0Industrial Engineering 106 563.53 0.8 8.5 15.7 720.55 18.4 2.3Industrial Transportation 88 414.45 0.3 6.7 11.1 538.03 13.8 2.5Support Services 61 220.64 0.7 5.3 14.7 276.29 17.7 2.6Consumer Goods 358 339.86 0.2 4.7 15.3 448.76 18.2 2.5Automobiles & Parts 88 307.66 1.6 10.5 20.9 391.89 23.6 2.1Beverages 46 472.19 -0.1 3.5 19.4 631.10 22.3 2.3Food Producers 88 459.69 0.1 4.2 12.1 626.68 15.1 2.6Leisure Goods 21 114.37 0.4 3.6 -12.8 140.99 -10.8 1.8Personal Goods 64 511.24 0.4 5.4 20.8 655.54 23.4 2.0Tobacco 13 956.68 -1.2 -1.0 9.1 1634.87 12.9 4.1Health Care 144 284.85 -0.5 4.4 17.0 372.53 20.3 2.6Health Care Equipment & Services 58 376.21 -0.7 4.0 17.5 416.74 19.1 1.3Pharmaceuticals & Biotechnology 86 220.87 -0.5 4.5 16.8 297.60 20.6 3.0Consumer Services 348 272.56 -0.3 5.0 20.2 335.64 22.9 2.1Food & Drug Retailers 50 226.00 -0.3 8.0 11.8 286.38 15.0 2.6General Retailers 112 365.08 -0.7 2.7 21.7 440.41 24.1 1.9Media 80 195.60 -0.1 6.6 30.0 241.83 32.8 2.0Travel & Leisure 106 274.10 0.1 5.1 13.0 340.54 15.5 2.2Telecommunication 95 148.52 0.0 2.8 3.9 230.66 9.5 5.2Fixed Line Telecommuniations 44 126.29 -0.5 2.2 0.4 211.29 6.7 6.2Mobile Telecommunications 51 156.02 0.5 3.5 7.9 223.42 12.6 4.2Utilities 156 231.26 0.0 4.6 -1.0 375.43 3.6 4.8Electricity 112 241.57 -0.2 5.0 -4.2 389.52 0.1 4.6Gas Water & Multiutilities 44 263.76 0.3 4.0 4.2 436.44 9.4 5.0Financials 617 176.61 0.6 7.5 25.5 251.58 29.6 3.0Banks 236 177.95 0.8 8.6 25.5 267.27 30.0 3.3Nonlife Insurance 66 155.00 0.3 6.0 21.8 201.03 25.4 2.5Life Insurance 46 154.09 0.9 8.0 27.0 216.32 30.9 2.8Technology 169 119.86 0.1 5.3 14.3 135.70 16.2 1.6Software & Computer Services 65 192.85 0.4 6.2 15.5 213.84 17.1 1.3Technology Hardware & Equipment 104 95.69 -0.1 4.8 13.5 109.68 15.5 1.9

Dec 19Countries & regions

FTSE Global Large Cap 1241 344.40 0.1 5.6 14.2 445.04 17.6 2.9FTSE Global Mid Cap 1629 488.73 0.3 6.3 15.9 600.41 18.6 2.2FTSE Global Small Cap 4368 516.62 0.3 6.2 15.4 618.95 17.8 2.0FTSE All-World (Large/Mid Cap) 2870 225.28 0.2 5.7 14.5 301.24 17.8 2.8FTSE World (Large/Mid Cap) 2464 394.02 0.1 5.7 14.4 707.73 17.7 2.8FTSE Global All Cap ex UK 6916 388.78 0.1 5.7 14.7 488.26 17.7 2.6FTSE Global All Cap ex USA 5304 424.88 0.9 7.4 14.6 564.49 18.5 3.1

FTSE Japan Large Cap 171 261.12 2.7 6.9 7.2 307.26 9.8 2.3FTSE Japan Mid Cap 277 341.13 2.0 4.0 -0.7 392.30 1.2 1.9FTSE Japan Small Cap 726 399.09 1.6 4.6 3.7 471.15 6.0 2.2FTSE Japan (Large/Mid Cap) 448 105.66 2.6 6.3 5.7 140.03 8.1 2.3

FTSE North America Large Cap 277 318.25 -0.7 3.5 13.8 391.80 16.5 2.4FTSE North America Mid Cap 411 480.11 -0.3 4.7 14.6 564.05 16.6 1.8FTSE North America Small Cap 1498 504.07 0.0 5.5 13.7 577.61 15.4 1.6FTSE All-World North America 688 213.26 -0.6 3.7 14.0 269.90 16.5 2.3FTSE All-World Dev ex North Am 1385 214.79 0.9 7.8 15.4 305.70 19.5 3.3

FTSE Asia Pacific Large Cap ex Japan 428 615.77 0.3 7.0 18.8 838.00 22.6 2.9FTSE Asia Pacific Mid Cap ex Japan 445 763.93 0.6 7.8 19.3 1015.51 22.8 2.8FTSE Asia Pacific Small Cap ex Japan 1213 550.19 0.3 5.2 14.1 721.87 17.4 2.8

FTSE Latin Americas All-Cap 208 1283.22 1.1 7.4 7.4 1727.03 10.3 3.0FTSE Middle East Africa All-Cap 206 740.94 1.1 6.7 13.5 1013.05 17.5 3.2FTSE UK All Cap 322 332.82 0.6 6.6 14.4 473.61 18.7 3.6FTSE USA All Cap 1934 354.91 -0.6 3.9 14.6 428.52 17.0 2.1FTSE Europe All Cap 1378 365.51 0.8 8.6 17.8 507.00 22.5 3.6FTSE Eurobloc All Cap 656 330.51 0.9 10.6 18.9 465.39 24.0 3.8

FTSE RAFI All-World 3000 Index 2996 4835.42 0.4 6.9 13.3 5581.79 17.0 3.1FTSE RAFI US 1000 Index 991 6392.16 -0.7 4.8 15.0 7535.47 17.7 2.3FTSE EDHEC-Risk Efficient All-W 2870 250.31 0.2 5.4 14.9 314.22 17.9 2.6FTSE EDHEC-Risk Efficient Dev Eur 511 242.89 0.8 8.6 18.7 326.46 22.8 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 7238 383.57 0.2 5.8 14.6 487.25 17.8 2.7FTSE Global All Cap ex Eurobloc 6582 390.95 0.1 5.2 14.1 488.98 17.1 2.5FTSE All-World Developed 2073 348.53 0.1 5.5 14.6 445.66 17.8 2.7FTSE Developed All-Cap 5604 364.33 0.1 5.6 14.7 461.93 17.8 2.6FTSE Developed Large Cap 842 325.85 0.0 5.4 14.5 420.89 17.8 2.8FTSE Developed Europe Large Cap 200 326.13 0.7 8.2 15.9 463.50 20.7 3.8FTSE Developed Europe Mid Cap 311 426.78 1.1 9.7 22.4 565.52 26.3 2.9FTSE Developed Europe Small Cap 724 554.45 1.2 9.6 25.1 718.63 29.0 2.9

FTSE All-World Asia Pacific ex Japan 873 481.82 0.4 7.1 18.8 698.10 22.6 2.9FTSE All Emerging All-Cap 1634 739.48 0.8 7.4 14.5 964.78 18.1 3.0FTSE All Emerging Large-Cap 399 711.60 0.8 7.4 12.5 931.27 16.3 3.1FTSE All Emerging Mid-Cap 398 900.24 0.9 7.9 21.3 1178.25 24.8 2.6FTSE All Emerging Small-Cap 837 710.67 0.6 6.7 20.8 903.11 24.1 2.6FTSE All-World All Emerging Europe 81 496.87 0.1 8.4 19.6 646.91 24.8 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 200 283.3 0.0 0.0 3.8 11.99 402.6FTSE Dev Eur M Cap 311 371.4 0.2 0.8 2.9 12.31 492.2FTSE Dev Eur S Cap 724 482.6 0.2 1.1 2.9 14.91 625.5FTSE Dev Europe 511 185.3 0.0 0.1 3.7 7.50 276.0FTSEurofirst 80 80 3480.0 0.1 2.9 4.2 142.78 5071.9FTSEurofirst 100 100 3426.6 0.1 3.8 4.1 138.00 4999.4FTSEurofirst 300 312 1142.8 0.1 0.7 3.7 41.81 1806.1FTSEurofirst 300 Ezone 167 1076.7 0.1 0.8 3.9 41.88 1700.8

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 18 316.2 -0.2 -0.8 4.6 14.37 447.5Chemicals 15 839.2 0.0 0.1 2.6 22.92 1060.1Basic Resources 13 571.9 -0.1 -0.6 2.9 16.41 693.5Construction & Materials 12 372.6 0.8 2.9 3.9 14.62 487.5IndustrialGoods&Services 54 512.2 0.2 1.1 2.9 14.97 633.2Automobiles & Parts 9 567.5 0.3 1.7 3.2 18.27 682.9Food & Beverage 18 647.8 0.2 1.3 2.6 17.14 817.6Personal&HouseholdGds 19 672.8 0.1 0.4 2.6 18.14 838.5Health Care 19 414.1 -0.2 -0.7 3.5 14.50 538.6Retail 15 338.8 -0.2 -0.8 3.4 11.66 431.9Media 9 286.8 0.4 1.0 3.9 11.27 393.8Travel & Leisure 8 401.7 0.3 1.2 2.3 9.39 519.5Telecommunications 13 250.1 -0.3 -0.7 7.4 18.25 401.3Utilities 21 303.0 0.0 -0.1 6.8 19.64 458.6Banks 29 157.1 0.2 0.2 3.5 5.29 213.4Insurance 19 292.8 0.5 1.3 4.1 12.07 404.2Financial Services 5 315.2 0.6 1.9 4.0 12.37 426.7Technology 11 246.8 -0.1 -0.3 2.2 5.27 292.4

Dec 20

EQUITY INDICES - FTSE EUROPEAN Week ago Yield P/E Yield P/E Yield P/E

Argentina 6.4 7.7 6.4 7.8 7.1 7.0Australia 4.5 16.1 4.5 16.0 4.5 15.9Austria 2.8 14.4 2.8 14.2 2.8 14.1Belgium 2.1 15.6 2.1 15.4 2.1 15.4Brazil 3.7 14.5 3.7 14.4 3.8 14.2Bulgaria 1.6 10.2 1.6 10.3 1.6 10.5Canada 3.0 15.5 3.0 15.4 3.0 15.5S&P/TSX 3.2 14.3 3.3 14.2 3.3 14.2Chile 3.0 19.5 3.0 19.5 3.1 19.3China 3.6 8.2 3.6 8.1 3.7 8.1Colombia 2.4 16.2 2.4 16.1 2.4 16.2Cyprys 2.1 36.4 2.2 35.4 2.1 37.6Czech Rep. 5.9 9.6 6.0 9.6 6.1 9.4Denmark 1.7 16.6 1.7 16.5 1.7 16.9Finland 5.1 16.0 5.1 16.1 5.1 15.9France 3.7 14.7 3.7 14.6 3.7 14.6Germany 3.1 12.2 3.1 12.2 3.1 12.1DAX 30 † 3.3 12.0 3.4 12.4 3.4 12.3Greece 1.9 14.4 2.0 13.8 1.9 14.3Hong Kong 2.6 12.9 2.6 12.8 2.6 12.9Hang Seng † 3.2 11.7 3.2 11.6 3.2 11.6Hungary 3.6 13.5 3.6 13.5 3.6 13.6India 1.5 17.8 1.5 17.7 1.5 17.6Indonesia 2.2 16.5 2.2 16.6 2.2 16.7Ireland 1.1 10.5 1.1 10.4 1.1 10.5Israel 3.5 14.3 3.5 14.1 3.4 14.5Italy 4.2 13.9 4.3 13.7 4.4 13.4Japan 2.3 15.2 2.3 14.9 2.4 14.5Topix † 2.3 0.4 2.3 0.4 2.4 0.4Luxemburg 3.9 9.4 3.9 9.4 3.9 9.4Malaysia 3.2 14.7 3.2 14.6 3.2 14.5

Week ago Yield P/E Yield P/E Yield P/E

Malta 4.7 15.7 4.7 15.7 4.7 15.7Mexico 1.8 19.9 1.8 20.0 1.8 19.6Netherland 2.8 14.4 2.8 14.3 2.8 14.3AEX † 3.3 10.4 3.3 10.3 3.6 10.4New Zealand 4.5 13.2 4.6 13.1 4.6 14.8Norway 4.3 9.6 4.4 9.5 4.4 9.5Pakistan 5.6 8.9 5.6 10.6 5.6 11.7Peru 4.9 40.3 4.8 40.3 5.0 39.4Philippines 1.8 20.0 1.8 19.6 1.7 20.2Poland 4.2 10.2 4.3 10.1 4.3 10.0Portugal 4.8 17.9 4.8 17.8 4.9 17.5Romania 5.2 10.0 5.2 10.0 5.2 10.0Russia 4.1 6.1 4.1 6.1 4.2 6.0Singapore 2.9 11.7 2.9 11.7 2.9 11.7Slovenia 4.1 12.0 4.2 11.7 4.2 11.7South Africa 3.4 16.2 3.5 16.0 3.5 15.9South Korea 1.3 16.5 1.3 16.5 1.3 16.4Spain 4.9 12.8 5.0 12.6 5.1 12.3Ibex 35 † 5.6 13.8 5.6 13.6 5.7 13.3Sri Lanka 2.6 13.6 2.6 13.6 2.6 13.5Sweden 3.7 12.7 3.7 12.6 3.7 12.6Switzerland 3.1 19.2 3.1 19.1 3.1 19.2Taiwan 3.4 18.8 3.4 18.7 3.4 18.9Thailand 2.9 15.4 2.9 15.2 3.0 15.1Turkey 2.1 11.6 2.0 11.7 2.0 11.7UK 3.4 12.6 3.4 12.6 3.4 12.6USA 2.2 15.9 2.2 16.0 2.2 15.8Dow Jones † 2.7 13.7 2.7 13.7 2.7 13.7S&P 500 † 2.6 15.2 2.6 15.2 2.6 15.1Venezuela 8.5 9.5 8.5 9.5 9.2 8.8

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 19 Dec 18 Dec 19 Dec 18STOCK MARKET - RATIOS

GlobalHFRX Global Hedge Fund Index 1146.50 0.2161 0.75 3.35HFRX Equal Weighted Strategies Index 1123.64 0.2821 0.60 2.26HFRX Absolute Return Index 953.66 0.1424 0.39 0.75HFRX Market Directional Index 1056.21 0.0186 0.63 3.37Equity HedgeHFRX Equity Hedge Index 1050.57 0.3088 0.63 5.01HFRX EH: Equity Market Neutral Index 935.65 0.0881 0.09 -4.66HFRX EH: Fundamental Growth Index 1493.50 0.5301 1.31 5.99HFRX EH: Fundamental Value Index 981.77 0.2740 0.50 6.26Event DrivenHFRX Event Driven Index 1377.14 0.2062 0.71 5.35HFRX ED: Distressed Restructuring Index 950.11 0.1655 0.25 0.68HFRX ED: Merger Arbitrage Index 1507.30 0.0494 1.10 0.91HFRX ED: Special Situations Index 1120.52 0.1071 0.70 4.50MacroHFRX Macro/CTA Index 1155.66 0.0907 0.76 -0.89HFRX Macro: Systematic Diversified CTA Index 1527.64 0.0351 1.35 -6.94Relative ValueHFRX Relative Value Arbitrage Index 1164.94 0.2323 0.92 3.25HFRX RV: FI-Convertible Arbitrage Index 696.17 1.1518 0.18 6.27HFRX RV: Multi-Strategy Index 1824.49 0.1228 0.90 3.06HFRI Monthly Strategy Indices - USD (Nov 2012)HFRI Fund Weighted Composite Index 10888.40 - 0.30 4.79HFRI Fund of Funds Composite Index 4985.24 - 0.49 3.62

HFR INDICES Index Value Dtd % Mtd % Ytd %December 18

Indices calculated by HFR (Hedge Fund Research Inc.) www.hfr.com

VOLATILITY INDICES Day Chng Prev. 52 wk high 52 wk low

VIX † 17.58 0.22 17.36 27.73 13.30VXD † 16.16 0.13 16.03 25.27 11.91VXN † 19.31 0.04 19.27 29.76 13.79VDAX ‡ 14.10 0.11 13.99 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 20

Open Sett Change High Low Est. vol. Open int.Dec 19

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 13350.00 13268.00 -61.00 13350.00 13295.00 47 11,727DJ Euro Stoxx‡ Dec 2654.00 2655.00 +8.00 2663.00 2645.00 1,570,636 1,558,211S&P 500 Dec 1448.00 1437.30 -8.40 1448.00 1435.50 30,382 95,999Mini S&P 500 Dec 1445.00 1437.25 -8.50 1450.50 1435.00 504,023 1,041,119Nasdaq 100 Dec 2710.50 2694.25 -9.75 2711.00 2693.00 282 23,746Mini Nasdaq Dec 2704.50 2694.25 -9.75 2716.00 2692.00 69,967 226,570CAC 40 Dec 3660.00 3667.00 +17.00 3672.00 3651.00 195,606 363,107DAX Dec 7673.00 7673.00 +11.50 7683.00 7654.00 186,180 109,797AEX Dec 344.75 345.10 +1.35 346.00 343.85 62,199 89,781MIB 30 Dec 16195.00 16320.00 +160.00 16385.00 16175.00 50,363 16,212IBEX 35 Dec 8192.00 8251.90 +84.80 8324.00 8192.00 23,596 31,017SMI Dec 6925.00 6952.00 +31.00 6973.00 6919.00 74,732 109,408FTSE 100 Dec 5954.50 5963.00 +16.50 5979.00 5945.50 220,311 184,879Hang Seng Dec 22635.00 22615.00 +108.00 22708.00 22552.00 74,445 124,652Nikkei 225† MAR3 10150.00 10180.00 +240.00 10190.00 10120.00 23,754 322,095Topix MAR3 840.00 841.50 +22.50 842.50 837.50 2,688 410,538KOSPI 200 MAR3 - 264.70 - - - - 104,675

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* 0.16350 - 0.002 0.009 0.21070 0.31000 0.51025 0.84300Euro Libor* 0.01357 - - - 0.05214 0.12214 0.21929 0.43857£ Libor* 0.48000 - - - 0.49375 0.51750 0.66938 1.01375Swiss Fr Libor* -0.01400 - 0.004 -0.014 -0.00800 0.01200 0.06700 0.25400Yen Libor* 0.09429 - -0.001 0.001 0.13371 0.18143 0.28514 0.49000Canada Libor* 0.96400 - 0.006 - 1.05400 1.23500 1.52300 1.94600Euro Euribor - - - - 0.11 0.18 0.32 0.54Sterling CDs - - - - 0.66 0.49 0.64 1.00US$ CDs - - - - 0.15 0.25 0.40 0.64Euro CDs - - - - -0.05 0.00 0.10 0.25US o’night repo 0.29 0.030 - 0.070Fed Funds eff 0.17 0.010 - 0.010US 3m Bills 0.06 - -0.010 -0.025SDR int rate 0.07 - - -EONIA 0.070 -0.002 0.004 -0.007EURONIA 0.0094 0.003 -0.012 0.003RONIA 0.4795 0.010 0.006 0.062SONIA 0.4276 -0.006 -0.003 0.012LA 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 20

INTEREST RATES - MARKET

Euro 0.04 - -0.02 0.10 - 0.06 0.13 - 0.09 0.27 - 0.04 0.32 - 0.16 0.44 - 0.26Danish Krone -0.15 - -0.40 0.10 - -0.20 -0.23 - -0.43 -0.11 - -0.31 0.06 - -0.14 0.36 - 0.16Sterling 0.48 - 0.38 0.52 - 0.42 0.54 - 0.44 0.62 - 0.52 0.80 - 0.63 0.97 - 0.80Swiss Franc 0.03 - -0.17 0.08 - -0.17 -0.15 - -0.35 0.10 - -0.20 0.20 - -0.10 0.35 - 0.05Canadian Dollar 1.40 - 0.90 1.10 - 0.90 1.15 - 1.00 1.24 - 1.14 1.52 - 1.42 1.95 - 1.85US Dollar 0.22 - 0.12 0.23 - 0.13 0.29 - 0.19 0.35 - 0.25 0.50 - 0.40 0.80 - 0.70Japanese Yen 0.10 - 0.01 0.11 - 0.01 0.14 - 0.02 0.25 - 0.05 0.40 - 0.20 0.60 - 0.30Singapore $ 0.03 - 0.01 0.35 - 0.15 0.31 - 0.06 0.55 - 0.40 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 20

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 1.00 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 20

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 109.9 110.0 109.1Canada 114.1 114.3 113.2Denmark 105.7 105.8 105.1Japan 166.9 167.0 174.6New Zealand 113.1 113.6 110.8Norway 109.7 109.8 109.3

Sweden 86.6 86.0 85.3Switzerland 144.9 144.7 143.9UK 83.8 83.7 83.7USA 80.8 80.7 81.3Euro 91.34 91.49 89.33

Mth ago Dec 20 Dec 19 Mth ago Dec 20 Dec 19FX - 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) 4.9000 0.0080 6.4862 -0.0004 7.9677 0.0086Australia (A$) 0.9548 0.0020 1.2639 0.0005 1.5525 0.0024Bahrain (Dinar) 0.3771 0.0000 0.4991 -0.0008 0.6131 -0.0003Bolivia (Boliviano) 6.9100 - 9.1468 -0.0156 11.2360 -0.0062Brazil (R$) 2.0636 -0.0129 2.7316 -0.0218 3.3555 -0.0229Canada (C$) 0.9887 0.0018 1.3087 0.0002 1.6076 0.0020Chile (Peso) 475.150 0.2000 628.956 -0.8039 772.618 -0.1023China (Yuan) 6.2302 -0.0001 8.2470 -0.0141 10.1307 -0.0057Colombia (Peso) 1789.20 -2.3000 2368.36 -7.0754 2909.33 -5.3523Costa Rica (Colon) 498.080 -0.1200 659.310 -1.2796 809.904 -0.6435Czech Rep. (Koruna) 19.0462 0.0285 25.2115 -0.0050 30.9702 0.0293Denmark (DKr) 5.6368 0.0101 7.4614 0.0007 9.1656 0.0114Egypt (Egypt £) 6.1673 -0.0018 8.1636 -0.0161 10.0283 -0.0084Hong Kong (HK$) 7.7501 - 10.2588 -0.0175 12.6020 -0.0070Hungary (Forint) 215.668 -0.3090 285.480 -0.8950 350.687 -0.6969India (Rs) 54.8650 0.2650 72.6248 0.2279 89.2133 0.3818Indonesia (Rupiah) 9652.50 2.5000 12777.0 -18.4025 15695.4 -4.6192Iran (Rial) 12259.5 - 16227.9 -27.5839 19934.6 -11.0335Israel (Shk) 3.7490 -0.0048 4.9626 -0.0147 6.0961 -0.0111Japan (Y) 84.3900 0.1300 111.707 -0.0175 137.222 0.1355 One Month 84.3597 -0.0022 111.714 0.0016 137.171 -0.0028 Three Month 84.3242 0.0004 111.728 0.0030 137.088 -0.0013 One Year 84.0535 0.0102 111.723 0.0117 136.516 0.0015Kenya (Shilling) 85.8750 -0.2250 113.673 -0.4916 139.637 -0.4433Kuwait (Dinar) 0.2811 0.0002 0.3721 -0.0004 0.4571 -Malaysia (M$) 3.0555 0.0020 4.0446 -0.0042 4.9684 0.0005Mexico (New Peso) 12.7715 0.0458 16.9057 0.0319 20.7671 0.0629New Zealand (NZ$) 1.2004 0.0064 1.5890 0.0058 1.9519 0.0094Nigeria (Naira) 157.200 -0.6500 208.086 -1.2155 255.615 -1.1990Norway (NKr) 5.5613 0.0057 7.3615 -0.0050 9.0429 0.0042Pakistan (Rupee) 97.3750 -0.3600 128.895 -0.6964 158.337 -0.6733Peru (New Sol) 2.5615 - 3.3907 -0.0058 4.1652 -0.0023Philippines (Peso) 41.0700 0.0300 54.3644 -0.0526 66.7819 0.0118

Poland (Zloty) 3.0718 -0.0069 4.0661 -0.0161 4.9948 -0.0141Romania (New Leu) 3.3632 -0.0101 4.4519 -0.0209 5.4687 -0.0194Russia (Rouble) 30.6843 -0.0845 40.6168 -0.1811 49.8941 -0.1651Saudi Arabia (SR) 3.7502 0.0000 4.9642 -0.0085 6.0980 -0.0034Singapore (S$) 1.2189 0.0007 1.6135 -0.0018 1.9820 0.0002South Africa ( R) 8.5029 0.0161 11.2552 0.0022 13.8261 0.0185South Korea (Won) 1074.68 1.4750 1422.55 -0.4623 1747.48 1.4325Sweden (SKr) 6.5066 -0.0323 8.6128 -0.0573 10.5800 -0.0583Switzerland (SFr) 0.9121 0.0003 1.2074 -0.0016 1.4832 -0.0003Taiwan (T$) 29.0395 -0.0095 38.4396 -0.0779 47.2197 -0.0416Thailand (Bt) 30.6300 0.0250 40.5449 -0.0358 49.8059 0.0130Tunisia (Dinar) 1.5499 0.0025 2.0515 -0.0003 2.5202 0.0026Turkey (Lira) 1.7861 0.0051 2.3642 0.0027 2.9042 0.0066U A E (Dirham) 3.6731 0.0001 4.8620 -0.0082 5.9726 -0.0031UK (0.615)* (£) 1.6261 -0.0009 0.8141 -0.0010 - - One Month 1.6260 0.0000 0.8144 0.0000 - - Three Month 1.6257 0.0000 0.8150 0.0000 - - One Year 1.6242 -0.0002 0.8184 0.0001 - -Ukraine (Hrywnja) 8.0940 -0.0075 10.7141 -0.0282 13.1613 -0.0195Uruguay (Peso) 19.2500 -0.0500 25.4813 -0.1096 31.3015 -0.0986USA ($) - - 1.3237 -0.0023 1.6261 -0.0009 One Month - - 1.3243 0.0001 1.6260 0.0000 Three Month - - 1.3250 0.0000 1.6257 0.0000 One Year - - 1.3292 0.0000 1.6242 -0.0002Venezuela (Bolivar Fuerte) 4.2947 - 5.6849 -0.0096 6.9833 -0.0039Vietnam (Dong) 20860.0 - 27612.4 -46.9337 33919.4 -18.7740

Euro (0.7555)* (Euro) 1.3237 -0.0023 - - 1.2284 0.0014 One Month 1.3243 0.0001 - - 1.2279 0.0000 Three Month 1.3250 0.0000 - - 1.2270 0.0000 One Year 1.3292 0.0000 - - 1.2219 -0.0001

SDR - 0.6478 0.0005 0.8574 -0.0008 1.0533 0.0003

Dec 20

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 5.701 0.764 85.36 5.625 6.581 0.923 0.622 1.011

Denmark DKr 1.754 10 1.340 149.7 9.866 11.54 1.618 1.091 1.774

Euro Euro 1.309 7.461 1 111.7 7.361 8.613 1.207 0.814 1.324

Japan Y 1.172 6.679 0.895 100 6.590 7.710 1.081 0.729 1.185

Norway NKr 1.778 10.14 1.358 151.7 10 11.70 1.640 1.106 1.798

Sweden SKr 1.519 8.663 1.161 129.7 8.547 10 1.402 0.945 1.537

Switzerland SFr 1.084 6.180 0.828 92.52 6.097 7.134 1 0.674 1.096

UK £ 1.608 9.166 1.228 137.2 9.043 10.58 1.483 1 1.626

USA $ 0.989 5.637 0.755 84.39 5.561 6.507 0.912 0.615 1

Dec 20EXCHANGE CROSS RATES

Day’s Mth’s Spread Red Ratings Bid Bid chge chge vs date Coupon S* M* F* price yield yield yield GovtsDec 20

US$Bank of America 01/13 4.88 A- Baa2 A 100.21 0.96 0.00 -0.22 0.91Goldman Sachs 07/13 4.75 A- A3 A 102.21 0.74 0.01 -0.16 0.64Hutchison 03/33 01/14 6.25 A- A3 A- 105.24 1.33 -0.11 0.18 1.17Misc Capital 07/14 6.13 BBB Baa2 - 106.16 1.97 0.00 0.02 1.70BNP Paribas 06/15 4.80 A- Baa3 A 105.24 2.62 -0.01 -1.06 2.24GE Capital 01/16 5.00 AA+ A1 - 110.79 1.36 -0.06 -0.01 0.99Erste Euro Lux 02/16 5.00 AAA - - 102.02 4.30 -0.01 0.15 3.87Credit Suisse USA 03/16 5.38 A+ A1 A 112.23 1.43 -0.01 0.04 0.89SPI E&G Aust 09/16 5.75 A- A1 A 110.65 2.72 0.00 0.06 2.34Abu Dhabi Nt En 10/17 6.17 A- A3 - 117.25 2.36 -0.07 -0.21 1.66Swire Pacific 04/18 6.25 A- A3 A 119.19 2.38 0.03 -0.08 1.62ASNA 11/18 6.95 A- Baa2 A 119.18 3.31 0.17 0.23 2.56Codelco 01/19 7.50 A A1 A+ 128.09 2.47 0.02 0.13 1.25Bell South 10/31 6.88 A- WR A 124.64 4.86 -0.04 0.12 3.08GE Capital 01/39 6.88 AA+ A1 - 135.92 4.52 -0.10 0.03 1.56Goldman Sachs 02/33 6.13 A- A3 A 116.30 4.85 -0.14 -0.15 1.88

EuroAmer Honda Fin 07/13 6.25 A+ A1 - 103.20 0.41 -0.33 -0.30 0.40SNS Bank 02/14 4.63 BBB Baa2 BBB+ 102.69 2.21 0.11 0.03 2.17JPMorgan Chase 01/15 5.25 A A2 A+ 109.00 0.81 0.00 -0.02 0.81Hutchison Fin 06 09/16 4.63 A- A3 A- 112.46 1.19 -0.09 -0.01 0.98Hypo Alpe Bk 10/16 4.25 - A1 - 103.05 3.39 0.00 0.44 3.25GE Cap Euro Fdg 01/18 5.38 AA+ A1 - 118.69 1.51 -0.06 -0.09 1.09Unicredit 01/20 4.38 BBB+ Baa2 A- 103.28 3.84 -0.28 -0.51 2.98ENEL 05/24 5.25 BBB+ Baa2 BBB+ 103.91 4.79 -0.08 -0.15 3.30

YenACOM 51 06/13 2.07 BB+ WR BBB+ 100.47 0.99 -0.01 -0.04 0.88Deutsche Bahn Fin 12/14 1.65 AA Aa1 AA 102.70 0.25 -0.01 0.01 0.14Nomura Sec S 3 03/18 2.28 - - - 100.53 2.17 -0.01 -0.03 1.97

£ SterlingSlough Estates 09/15 6.25 - - A- 110.27 2.34 0.00 -0.23 1.90ASIF III 12/18 5.00 A+ A2 A 111.03 2.94 -0.06 -0.36 1.62

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 20

High Yield US$HSBK Europe 05/13 7.75 BB Ba3 BB- 101.80 2.91 -0.26 -1.50 2.80Kazkommerts Int 04/14 7.88 B+ Caa1 B 100.40 7.53 -0.89 -1.01 7.22Bertin 10/16 10.25 BB B1 - 108.95 7.48 -0.17 0.01 6.93

High Yield EuroRoyal Carib Crs 01/14 5.63 BB Ba1 - 101.50 4.17 2.04 -0.24 4.16Kazkommerts Int 02/17 6.88 B+ Caa1 B 89.28 10.17 -0.35 -1.23 9.95

Emerging US$Bulgaria 01/15 8.25 BBB Baa2 BBB- 113.86 1.38 -0.09 -0.04 1.10Peru 02/15 9.88 BBB Baa2 BBB 117.78 1.31 -0.13 -0.32 1.04Brazil 03/15 7.88 BBB Baa2 BBB 114.55 1.15 -0.02 0.27 0.88Mexico 09/16 11.38 BBB Baa1 BBB 136.75 1.23 -0.05 0.00 0.86Argentina 01/17 11.38 27.81 59.18 - - 58.54Philippines 01/19 9.88 BB+ Ba1 BB+ 143.96 2.10 -0.05 0.04 0.88Brazil 01/20 12.75 BBB Baa2 BBB 170.73 1.96 -0.13 -0.10 0.74Colombia 02/20 11.75 BBB- Baa3 BBB- 160.95 2.43 -0.07 0.07 1.20Russia 03/30 7.50 BBB Baa1 BBB 127.27 2.71 -0.02 -0.28 1.95Mexico 08/31 8.30 BBB Baa1 BBB 161.00 3.73 -0.05 -0.02 1.95Indonesia 02/37 6.63 BB+ Baa3 BBB- 133.75 4.35 0.01 0.00 1.38

Emerging EuroBrazil 02/15 7.38 BBB Baa2 BBB 113.60 0.83 -0.04 0.12 0.82Poland 02/16 3.63 A- A2 A- 108.38 0.87 -0.01 -0.17 0.82Turkey 03/16 5.00 BB Ba1 BBB- 108.81 2.10 -0.20 -0.21 2.04Mexico 02/20 5.50 BBB Baa1 BBB 120.06 2.41 -0.02 -0.12 1.54

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 0.070.01 0.090.06 0.140.15 0.230.27 0.350.41 0.490.54 0.620.67 0.750.79 0.870.90 0.981.06 1.161.22 1.321.34 1.441.39 1.491.44 1.54

0.32 0.350.38 0.410.48 0.510.64 0.670.85 0.881.08 1.111.29 1.321.48 1.511.65 1.681.81 1.842.07 2.102.34 2.372.56 2.592.67 2.702.74 2.77

0.20 0.260.18 0.240.18 0.240.21 0.270.26 0.320.34 0.400.43 0.490.54 0.600.65 0.710.76 0.820.97 1.051.27 1.351.59 1.671.75 1.831.82 1.90

0.54 0.570.71 0.750.79 0.830.91 0.961.06 1.111.24 1.291.42 1.471.61 1.661.78 1.831.94 1.992.20 2.272.47 2.562.75 2.882.90 3.032.97 3.10

0.30 0.340.36 0.400.47 0.510.62 0.660.81 0.850.99 1.031.17 1.211.34 1.381.49 1.531.62 1.661.84 1.882.06 2.102.21 2.252.26 2.302.28 2.32

Dec 20

INTEREST RATES - SWAPS

Red Bid Bid Day chg Wk chg Month Year Date Coupon Price Yield yield yield chg yld chg yldDec 20

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 4.50 103.16 2.71 -0.07 -0.05 -0.02 -0.34 04/23 5.50 118.71 3.34 -0.06 0.08 0.21 -0.50Austria 10/14 3.40 106.05 0.06 -0.02 0.02 -0.02 -0.86 11/22 3.40 114.73 1.77 -0.07 0.03 -0.03 -1.23Belgium 09/14 4.25 107.27 0.10 -0.03 0.00 -0.11 -2.66 09/22 4.25 119.22 2.06 -0.11 -0.07 -0.22 -2.34Canada 02/15 1.00 99.74 1.13 -0.03 0.03 0.04 0.27 06/22 2.75 107.87 1.84 -0.02 0.08 0.11 -0.02Denmark 11/14 2.00 103.94 -0.09 0.02 0.06 0.08 -0.30 11/23 1.50 100.25 1.48 0.01 0.12 0.12 -0.33Finland 09/14 3.13 105.33 0.02 -0.01 0.03 0.02 -0.35 09/22 1.63 99.93 1.63 -0.02 0.04 -0.02 -0.75France 10/14 4.00 107.14 0.09 0.01 0.03 -0.04 -0.68 10/17 4.25 116.86 0.69 -0.04 0.04 -0.13 -1.33 10/22 2.25 102.17 2.00 -0.06 0.03 -0.08 -1.09 04/41 4.50 128.79 2.98 -0.08 -0.06 -0.08 -0.61Germany 12/14 - 100.00 0.00 -0.01 0.06 0.02 -0.21 10/17 0.50 100.57 0.38 -0.02 0.05 0.01 -0.44 09/22 1.50 100.76 1.42 -0.01 0.07 0.06 -0.47 07/44 2.50 105.14 2.27 -0.04 0.02 0.01 -0.12Greece 02/23 2.00 49.43 11.62 -1.15 -1.59 -5.58 -21.88 02/33 2.00 38.11 11.02 -0.71 -1.01 -4.64 -Ireland 10/17 5.50 109.43 3.34 -0.11 -0.19 -0.01 -4.91 10/20 5.00 102.54 4.60 -0.11 -0.16 -0.19 -3.80Italy 11/14 6.00 107.80 1.77 -0.15 -0.34 -0.49 -3.52 11/17 3.50 101.95 3.09 -0.14 -0.40 -0.67 -3.15 11/22 5.50 109.08 4.40 -0.05 -0.25 -0.50 -2.47 09/40 5.00 101.01 4.99 -0.02 -0.23 -0.57 -1.90Japan 12/14 0.10 100.00 0.10 0.00 0.00 - -0.04 12/17 0.20 100.07 0.19 -0.01 0.02 0.00 -0.16 12/22 0.70 99.30 0.78 0.02 0.07 0.04 -0.20 12/32 1.70 99.24 1.75 0.01 0.09 0.07 0.01Netherlands 07/14 3.75 105.72 0.05 -0.03 0.03 0.01 -0.20 07/22 2.25 105.70 1.60 -0.03 0.05 -0.02 -0.61New Zealand 04/15 6.00 107.58 2.58 -0.01 -0.05 0.11 0.12 04/23 5.50 116.51 3.57 0.00 -0.09 0.11 -0.28Norway 05/17 4.25 111.20 1.59 - 0.04 -0.01 0.32 05/23 2.00 98.07 2.21 0.02 0.04 0.12 0.04Portugal 10/14 3.60 100.43 3.34 -0.22 -0.41 -2.21 -12.68 10/23 4.95 84.46 7.05 -0.08 -0.30 -1.37 -6.13Spain 10/14 3.30 100.75 2.87 -0.08 -0.09 -0.47 -0.54 01/22 5.85 104.45 5.22 -0.10 -0.15 -0.69 0.02Sweden 08/15 4.50 109.37 0.87 0.04 0.16 0.17 0.00 06/22 3.50 116.45 1.61 0.05 0.15 0.15 -Switzerland 01/14 4.25 104.52 -0.15 0.01 0.01 0.01 -0.17 05/22 2.00 113.90 0.49 0.00 0.07 0.04 -0.22UK 03/14 2.25 102.25 0.38 -0.02 0.05 0.09 0.03 09/17 1.00 100.33 0.93 -0.03 0.10 0.15 -0.17 09/22 1.75 98.37 1.93 -0.04 0.09 0.17 -0.13 12/42 4.50 125.12 3.19 -0.01 0.04 0.15 0.12US 12/14 0.13 99.72 0.27 -0.01 0.02 0.02 0.03 12/17 0.75 99.96 0.76 -0.01 0.11 0.13 -0.05 11/22 1.63 98.59 1.78 -0.05 0.08 0.17 -0.03 11/42 2.75 95.81 2.96 -0.05 0.07 0.20 0.16

BONDS - BENCHMARK GOVERNMENT

Overall (£) 1093 254.52 0.18 -1.28 4.95 -0.48 5.69Overall ($) † 3262 216.28 0.10 -0.60 4.34 -0.60 4.34Overall (€) 2276 192.14 0.10 0.59 10.95 1.33 11.42Global Inflation-Lkd † 97 249.40 0.03 0.51 8.41 1.66 8.56Gilts (£) 33 257.21 0.20 -1.56 1.79 -0.71 2.48Corporates (£) 703 254.15 0.16 -0.61 14.53 0.05 15.45Corporates ($) † 2111 236.56 0.11 -0.34 10.04 -0.34 10.04Corporates (€) 1196 191.43 0.05 0.54 13.11 0.86 13.92Treasuries ($) † 156 209.20 0.12 -0.82 1.78 -0.82 1.78Eurozone Sov (€) 261 191.64 0.13 0.64 10.86 1.68 11.15ABF Pan-Asia unhedged 541 178.09 -0.06 -0.08 7.62 0.05 8.13

Day’s Month’s Year Return Return Index change change change 1 month 1 year

Sterling Corporate (£) 73 110.30 0.19 -1.22 4.61 -0.75 9.96Euro Corporate (€) 303 107.41 0.05 0.41 8.12 0.76 12.56Euro Emerging Mkts (€) 11 95.96 0.07 0.42 8.61 0.88 14.60Eurozone Gov’t Bond 236 105.32 0.12 1.60 7.69 1.90 11.69

Emerging Markets 5Y 207.96 0.24 -4.16 -37.22 257.25 207.30Nth Amer Inv Grade 5Y 89.73 0.64 -3.51 -10.77 111.25 89.09Nth Amer High Yld 5Y 457.54 5.94 -11.40 -60.70 572.12 451.60Nth Amer HiVol 5Y 189.75 -2.20 -7.22 -29.70 226.49 180.96

Europe 5Y 109.39 -0.61 -5.42 -18.89 141.39 109.39Crossover 5Y 444.73 -0.53 -18.02 -77.78 581.00 444.73HiVol 5Y 162.77 -1.76 -10.91 -34.19 211.37 162.77Japan 5Y 158.50 1.97 -7.47 -23.38 227.22 156.53SovX CEEMEA 5Y 159.31 -2.31 -3.59 -19.96 231.44 159.31SovX Western Europe 5Y 108.63 -1.51 -3.23 -9.47 148.75 103.54

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 20

Dec 20

Dec 20

Dec 19

Dec 19

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 20

Spread Spread Bid vs vs Yield Bund T-Bonds

Australia 3.34 +1.93 +1.56Austria 1.77 +0.35 -0.01Belgium 2.06 +0.64 +0.27Canada 1.84 +0.42 +0.06Denmark 1.48 +0.06 -0.31Finland 1.63 +0.22 -0.15France 2.00 +0.59 +0.22Germany 1.42 - -0.37Greece 11.62 +10.21 +9.84Ireland 4.60 +3.19 +2.82Italy 4.40 +2.99 +2.62Japan 0.78 -0.64 -1.01

Netherlands 1.60 +0.19 -0.18New Zealand 3.57 +2.16 +1.79Norway 2.21 +0.79 +0.43Portugal 7.05 +5.63 +5.27Spain 5.22 +3.81 +3.44Sweden 1.61 +0.19 -0.18Switzerland 0.49 -0.93 -1.30UK 1.93 +0.52 +0.15US 1.78 +0.37 -

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% ’21 140.81 -0.26 -0.25 -0.70 2.16 5.2 65.1 6Fr 2.25% ’20 118.81 -0.21 -0.20 0.36 1.47 20.0 183.7 13Swe 0.25% ’22 102.56 0.10 0.06 -0.31 1.51 16.8 238.0 5UK 2.5% ’16 342.83 -1.78 -1.79 -0.46 2.41 7.9 334.3 21UK 2.5% ’24 336.71 -0.53 -0.55 -0.59 2.70 6.8 334.3 21UK 2% ’35 199.11 0.04 0.01 -0.32 3.00 9.1 334.3 21US 0.625% ’21 113.44 -0.88 -0.86 -1.01 2.37 35.8 959.2 33US 3.625% ’31 158.25 -0.14 -0.11 -1.21 2.54 16.8 959.2 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 19 Dec 19 Dec 18

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 † Feb 89.98 ncBrent Crude Oil ‡ Feb 110.36 ncRBOB Gasoline † Jan 2.7431 ncHeating Oil † Jan 3.0356 ncNatural Gas † Jan 3.320 ncEthanol u Jan 2.214 ncUranium 44.75 ncCarbon Emissions ‡ Jan €7.17 +0.14Diesel (French) 951.75 +5.50Unleaded (95R) 964.00 +3.00

Tin 23300.00 -350.00Zinc 2066.00 -16.00Aluminium 2069.00 -35.00Aluminium Alloy 1930.00 -20.00Copper 7851.50 -133.50Lead 2330.00 -2.50Nickel 17525.00 -150.00

Gold 1650.50 -14.50Silver (US Cents) 3112.00 -25.00Platinum 1575.00 -22.00Palladium 685.00 -10.00

Corn u Mar 703.00 ncWheat u Mar 805.75 ncSoyabeans u Jan 1437.00 ncSoyabeans Meal u Jan 436.50 ncCocoa v Mar £1471 -13Cocoa ™ Mar 2.328 0Coffee (Robusta) v Jan 1918 +41Coffee (Arabica) ™ Mar 144.90 ncWhite Sugar v Mar 517.80 ncSugar 11 ™ Mar 19.23 ncCotton ™ Mar 75.89 ncOrange Juice ™ Jan 141.50 ncPalm Oil Dec 757.50 -5.00Live Cattle ® Dec 129.475 ncFeeder Cattle ® Jan 153.475 ncLean Hogs ® Feb 86.575 nc

Bulk CommoditiesIron Ore (Platts) ± Jan 133.50 +1.50Iron Ore (TSI) ≠ 135.50 ncglobalCOAL RB Index 89.77 +0.83Baltic Dry Index 708 -12

% Chg % Chg Mnth YearS&P GSCI Spt 644.73 1.2 4.3DJ UBS Spt 139.55 -1.0 1.9R/J CRB TR 296.06 0.7 0.3Rogers RICIX TR 3705.72 1.7 6.4M Lynch MLCX Spt 545.23 1.2 4.6UBS B’berg CMCI TR 1305.94 1.7 6.2LEBA EUA Carbon 6.77 -10.1 2.1LEBA CER Carbon 0.39 -44.3 -91.0LEBA UK Power 47.58 -1.3 4.0

Dec 19

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 21 2012 Section:Stats Time: 20/12/2012 - 19:08 User: sheehanr Page Name: CURRTAB USA, Part,Page,Edition: EUR, 23, 1

24 ★ FINANCIAL TIMES FRIDAY DECEMBER 21 2012

MARKETS & INVESTING

Momentum trading part of a wider structural f law

In recent decades, Harold Ehrlich hasenthused about America’s hedge fundworld. No wonder: he is an adviser toJPMorgan’s fund of hedge funds and usedto run Bernstein-Macauley, the assetmanagement group.

But these days Mr Ehrlich isdisenchanted. He has circulated a memo toclients admitting that, “sad to say, thevast majority of all hedge funds worldwidehave well underperformed virtually everymajor stock or bond index for some fouryears.

“What explains such a fall from grace ofeven many long-time masters of thefinancial universe?” he asks.

“Have such highly skilled super savvy“best of the best” gone from being “smart”

to “dumb”? What went wrong?” What,indeed? Mr Ehrlich is not the only personasking this question; other financiers arequietly muttering it too. But what makeshis outcry particularly interesting is thatMr Ehrlich believes he has an answer: anaddiction to momentum trading.

Back in the old days, he says, mosthedge funds eschewed the idea of usingstrategies based on market timing, or evenmacroeconomics. “Previously, mostmanagers paid scant attention to businesscycles, overall GDP trends or the potentialeffects of political forces . . . they focusedmainly on management prowess, productsuperiority, marketing clout,” his memoexplains. “But after the disaster of 2008,”momentum trading and “amateureconomics” came to rule. “Managers paidincreasing attention to the ‘big picture’.Risk on, risk off – adjusting exposure –[has] become an almost daily practice.” Inother words, portfolio churning based onmarket timing has replaced any focus onfundamentals.

Many hedge fund managers might retortthey have had little choice: in a climate oflow volatility and interest rates, they have

to hunt returns wherever they can whenpolitics is buffeting markets inunpredictable ways. But if that argumentis correct, that in itself may point to abigger problem that goes beyond the hedgefunds.

Take a look, for example, at some ideasrecently floated by Paul Woolley andDimitri Vayanos, two London-basedfinance professors, in a paper* presentedto a conference in New York. They believe

the current obsession with momentumtrading is just one sign of a widerstructural flaw – and intellectual conceit –that is marring the financial world. Inparticular, western investors, likeregulators, have hitherto operated with theidea that markets are driven by freemarket forces; the dominant rhetoric wasthat investors allocate according torational decisions about risk and reward.

But that is a sham. “Like regulators,funds have been following proceduresbased on the discredited theory of perfectmarkets,” the two professors write. Butmost households only “invest” by givingtheir money to institutions, rather thanallocating it themselves; and they choosethose investment groups not on anyrational assessment of current or futuretrends (since they lack real data), but oncrude measures of past performance. As aresult, institutional managers facepressure to herd into strategies thatattempt to copy the previous “winners”,because that is how they win clients.Hence the tendency of markets to produceasset bubbles; and the pressure to chasemomentum.

So is there any solution? Mr Ehrlichthinks the problem could be solved if onlydisgruntled investors in hedge funds wouldpick up the phone and demand that hedgefunds go back to investing basics. “Callyour [hedge fund] managers and remindthem that net cash returns, not just alpha,are required for you and your institutionto stay the course,” he counsels.

Profs Woolley and Vayanos are even

more specific. They want investors to take10 steps, including adopting a long-terminvestment approach based on dividendflows; insisting that annual turnover ofportfolios is capped at 30 per cent;replacing benchmarks based on marketcapitalisation with more stable measures;and paying performance fees only on thebasis of long-term results. They also urgepolicy makers to support long-terminvesting in their tax codes and regulatoryregimes and to demand that public fundsblaze a trail in setting a new investmentstyle.

As advice goes, it sounds sensible, if notlong overdue. But don’t bet on rapidchange. After all, what makes Mr Ehrlich’snote so striking is precisely that it isrelatively rare; most financial advisers(and investors) still prefer to grumblequietly, rather than speak out.

Until they make their voices heard,pressure for change will remain muted.

*Taming the Finance Monster; CentralBanking Journal December 2012. PaulWoolley and Dimitri Vayanos

gillian.tett@ft.com

Crop prices fall on hopes of high outputdrought in 50 years in theUS.

Analysts forecast thatfarmers would sow far moreacres even than in 2011,when they dedicated 96.4macres to the crop, the mostsince 1937, attracted by his-torically high corn prices.

Informa, a closely

By Javier Blas in London

Agricultural commoditiesprices fell sharply with cornhitting its lowest level infive months as investors betthat production wouldrebound strongly next year.

The price drop in the finaldays of December is cap-ping a tumultuous year foragricultural commodities.

Bad weather in key pro-ducing areas in the US Mid-west, the former SovietUnion and Latin Americahad reduced the size of thegrains and oilseeds harvest,pushing costs higher. Theprice surge this year wasthe third big rise in foodcommodities in five years.

CBOT March corn yester-day fell to a session low of$6.87½ per bushel, the low-est since early July, anddown nearly 19 per centfrom the high of $8.43¾ setin August after the worst

Corn price

Source: Thomson Reuters Datastream

Front-month (cents per bushel)

Jun Dec2012550

600

650

700

750

800

850

“most demand still seems tobe filled by Brazil or othersellers at this time”.

Soyabeans prices were hitafter the US Department ofAgriculture disclosed thatChinese importers had can-celled a second cargo of USsoyabeans. CBOT Januarysoyabeans fell to $14.02¾ abushel, approaching a six-month low.

Although wheat pricesalso fell on the day, thecereal remained better sup-ported as traders and ana-lysts worried about adrought in the centre of theUS, which could reduce pro-duction of hard red winterwheat, used to producebread, next year.

The USDA this week said60 per cent of the US highplains, a critical wheat pro-duction area, was sufferingfrom extreme or exceptionaldrought.

www.ft.com/commoditiesTwitter: @ftcommodities

Fear gauges highlight the US f iscal cliffBank’s promise to supportembattled eurozone mem-bers calmed fears that thecurrency bloc could disinte-grate.

The VStoxx slipped to itslowest level since June 2007on Wednesday and yester-day was flat at 15.7 points.

Historically, the Euro-pean and US “fear gauges”have been tightly correlatedbut the European index hastypically traded 3-4 pointshigher – and significantlyhigher since the eurozonecrisis begun to rumble inMay 2010.

But the VStoxx is now 1.5points lower than the USgauge. The last time theVStoxx was that muchlower than the Vix – asidefrom a one-day spike in theUS gauge in August 2011 –was March 2009.

“The spread has abso-lutely collapsed,” a strate-gist observed. “I wouldn’texpect the VStoxx to staybelow the Vix for long. If

By Robin Wigglesworthand Ralph Atkins in London

Europe’s “fear gauge” hasfallen below its US equiva-lent, a stark reversal of therelationship between thetwo indices that highlightshow investor concerns haveshifted sharply from theeurozone crisis to thelooming US fiscal cliff.

The US Vix and the Euro-pean VStoxx gauges meas-ure the cost of hedgingagainst sharp moves in theS&P 500 and the Euro Stoxx50, respectively, and areseen as a barometer ofinvestor fear.

Although still subduedcompared with the peaks ofrecent years, the Vix indexhas see-sawed higher from afive-year low of 13.4 pointsin mid-August to 17.4 pointsyesterday.

In contrast, Europe’sVStoxx index has graduallyfallen since the summerafter the European Central

the US goes over the cliff, itwill affect everyone.”

Indeed, futures contractson the two indices indicatethat investors expect theVStoxx to climb higherthan the Vix as early asJanuary.

Nonetheless, the moveunderscores how markedlythe main global macroeco-

nomic concern has shiftedwestwards, unless lawmak-ers and President BarackObama can strike a dealbefore the end of the year.

Even Ben Bernanke, theUS Federal Reserve chair-man who popularised the“fiscal cliff” term this year,

SunGard says it will raise $720m to fund a dividend to its private equity backers Bloomberg

US marketed leveraged loans with use of proceeds fordividend recap

Sources: Dealogic; S&P Capital IQ

Deal value ($bn) Number of deals

0

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0

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2001 02 03 04 05 06 07 08 09 10 11 12

US collaterised loan obligations issuance$bn

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2001 02 03 04 05 06 07 08 09 10 11 12

Private equity getsextra pep from thehunt for yield

It has been a vintage yearfor private equity firmsseeking to take money outof their portfolio companies,and a gathering boom in anoften overlooked part of thecredit markets means 2013is shaping up to be poten-tially even more lucrative.

Something else handy:the same private equityfirms are helping stoke theboom.

The market for collateral-ised loan obligations,investment vehicles thatbuy up corporate loans, hasroared back to life this yearthanks to investors’ hungerfor high-yielding assets.

CLO debt and equity issu-ance this year passed $52bnafter two more deals yester-day, according to Standard& Poor’s Capital IQ data.The total is more than fourtimes last year’s figure, andprivate equity firms areamong the biggest manag-ers of CLOs.

That in turn has added asignificant source ofdemand for the leveragedloans that CLOs buy, whichpushed down borrowingcosts for companies andmade so-called “dividendrecaps” cheaper.

According to Datalogicfigures, there has been$27.7bn of dividend recapi-talisation deals this year,in which already highlylevered companies take onloans to fund payouts totheir owners. This is thehighest level since 2007 andthe third-best figure ever.

Richard Hill, CLO strate-gist at RBS, says while com-panies have tapped the loanmarket this year to refi-nance borrowings at lower

rates and to pay dividends,the revival of the loan andCLO markets could soonadd further benefits to theeconomy.

“As leveraged loan issu-ance increases, you couldsee a return of merger andacquisition activity andbusiness investment activ-ity,” he says. “You wouldexpect to see that. Thismarket has been a signifi-cant financing vehicle forcompanies.”

CLOs are similar to othersecuritisation vehicles.They issue multipletranches of debt, includingsome with a triple A rating,whose investors will havefirst claim on cash flowsfrom the underlying loans.

Back in 2006 and 2007,CLOs were a big part ofthe private equity dealmachine. About 70 per centof all the loans that were

issued in connection withbuyouts went into thesesecuritisations, with cost ofcapital for issuers andreturns for investors fallingever lower.

Private equity firms domi-nate the CLO market,though they have had morecompetition this year asinvestor interest has lurednew players. Apollo, Aries,the Sankaty arm of BainCapital, and Carlyle areamong the buyout firmsthat have also gone into theCLO management business,as a way to increase assetsunder management and todiversify from dependenceon leveraged buyouts whenbig deals remain elusive.

Nobody is bigger thanBlackstone. Its debt arm,GSO Capital Partners, isthe largest CLO managerin the world, today owning

more non-investment gradeloans than JPMorgan.

Blackstone stands to ben-efit in many ways if theCLO revival continues,because it operates atalmost every link in thechain, from companyowner, to buyer of loansand as a fund manager thatinvests in its own CLOs.

GSO is planning tolaunch an exchange tradedfund that will invest in lev-eraged loans. It alreadyruns Carador, a London-listed fund that buys CLOdebt and equity and is trad-ing at a premium to netasset value.

One-third of Carador’sportfolio is invested in GSO-run CLOs, according to itsmost recent monthly filing.The fund also publishesdetails of the largest indi-vidual companies to whichit is exposed, through loansheld by the CLOs in itsportfolio. Among the top 10is software group SunGardData Systems, in whichBlackstone is part-owner.

Just this month, SunGardsaid it would raise $720m tofund a dividend to its pri-vate equity backers, includ-ing Blackstone.

S&P, the rating agency, isforecasting $55bn in CLOissuance in 2013, thoughsome analysts have pitchedas high as $80bn. Severalinvestment funds havelaunched this year to buyCLO debt and equity, sug-gesting rising demand.

The reason, according toKevin Kendra, head of USstructured credit at FitchRatings, is that the mosthighly rated CLO debt per-formed as expected throughthe financial crisis. Themarket price of CLO debtplunged, but fears thatCLOs would perform likethe other structured prod-ucts were unfounded.

“These instruments havebeen stellar performers,”says Linda Pace, head of USstructured credit for Car-lyle. “Very little money hasbeen lost. They can ride outcycles and are structured towithstand pain.”

News analysisCollateralised loanobligation debt andequity issuance thisyear has just passed$52bn, writeStephen Foley andHenny Sender

watched crop forecaster,this week said US farmerswould plant 99m acres withcorn in 2013. If the plantingforecast held and goodweather allowed for thedevelopment of the crop,the US could harvest amonster crop that will putpressure on prices.

But the price drop couldbe shortlived as corn inven-tories were low and fallingcosts would spur demandfrom the livestock industry,analysts said.

Moreover, the weatherremains dry, potentiallyhurting planting next year.

Cargill, the world’s larg-est trading house, haswarned about possible shortsupplies and higher pricesat the end of the crop sea-son in March-April.

But Jack Scoville, of thePrice Futures Group, a bro-ker in Chicago, said UScorn prices were still rela-tively high compared withother exporters, adding that

has expressed concernsabout the economic impactthe automatic cuts and taxincreases would have.

“I want be clear that wecannot offset the fullimpact of the fiscal cliff, it’stoo big given the tools wehave available and the limi-tations on our policy toolkitat this point,” Mr Bernankewarned earlier this month.

When UBS polled about200 global investors at arecent conference in Zurich,Switzerland, it found almosta quarter cited the US “fis-cal cliff” and recessionthreat as the biggest risk toglobal economic stability.

In contrast, the threat ofa eurozone sovereigndefault was seen by only18 per cent as the biggestdanger. “People think thatEurope is not a source ofsystemic risk any more sothe big, immediate worry isthe fiscal cliff,” saidStephane Deo, head of assetallocation at UBS.

‘People think thatEurope is not asource of systemicrisk any more’

Stephane Deo, UBS

‘These instrumentshave been stellarperformers. Verylittle money hasbeen lost’

Linda Pace, Carlyle

COMMODITIES

GillianTettINSIGHT

Asiacellto dialinto IraqimarketBy Simeon Kerr

Iraq’s Asiacell will offer 25per cent of its shares to thepublic in a deal that willvalue the oil-rich state’ssecond-largest mobile tele-communications companyat between $4.9bn-$5.5bn.

The offer will be the firstof three mandatory listingson Baghdad’s stock marketby Iraq’s mobile telecomsgroups, which also includemarket leader Zain Iraq andKorek Telecom.

Asiacell, in whichregional heavyweight QatarTelecom has a 54 per centstake, will on December 25announce the price atwhich it will begin to offershares to the public on Jan-uary 1 2013, before listingon the Iraq Stock Exchangeon February 3.

Gulf investors are leadingthe charge for one of themost highly-anticipatedregional equity marketofferings, says Shwan Ibra-him Taha of Baghdad-basedRabee Securities, the dis-tributor and selling agent.

“We are getting largeindicative demand fromGulf investors, as well asinterest from specialisedfirms in [the] US and Iraqisthemselves,” Mr Taha toldthe Financial Times. “Youwould be quite surprisedhow much money there isin Iraq.”

A public information cam-paign being run by the Iraqistock exchange is set to“make Margaret Thatcherproud”, said Mr Taha, in areference to the famousBritish Gas privatisationcampaign in 1986 by theConservative government.

The campaign hopes tointroduce Iraqis to theretail equities culture thathas gripped the Gulf states,where individual investors,rather than institutions,dominate stock markets.

Since the fall of SaddamHussein’s regime, most newlistings have been banks orother companies that do notappeal to retail investors.

Asiacell, which launchedin 2001, says it has beengrowing subscribers bymore than 10 per cent ayear to 9.9m in 2011, or a43 per cent market share.

‘Like regulators, funds havebeen following the discreditedtheory of perfect markets’

DECEMBER 21 2012 Section:Markets Time: 20/12/2012 - 18:59 User: kallmanng Page Name: LSE USA, Part,Page,Edition: EUR, 24, 1

FINANCIAL TIMES FRIDAY DECEMBER 21 2012 ★ † 25

MARKETS & INVESTING

Fundamentalsback in focus forS&P 500 bull run

Wall Street analysts arerenowned for being bullishand they are not holdingback for 2013.

After a year in whichmany were caught off-guardby a double-digit rise instocks, top strategists andportfolio managers are nolonger underestimating theresilience of US equities.

To do so though meansfirst paring back concernsof the US markets’ sensitiv-ity to macroeconomicevents. Those concernshelped bolster the mostbearish calls on earningsgrowth in 2012, which haveproved wildly off the mark.

Adam Parker, MorganStanley’s chief US equitystrategist, in his outlook fornext year says a backdropof macro risks remainsincluding the US fiscal situ-ation, the European debtcrisis and a slowdown inemerging markets.

But Mr Parker, who hadone of the most bearishviews for the S&P 500 in2012, says “the acuteness ofthese issues appears now tobe less sharp”.

Strategists at S&P CapitalIQ have called for a 2013year-end of 1,550 for theS&P 500, saying stockscould still benefit if thoserisks recede next year.

Still, that recognition hasbrought some of the focusback on to company funda-mentals. Earnings growthfor the S&P 500 is forecast

at 9.8 per cent while reve-nues are expected to expand3.8 per cent in 2013, accord-ing to FactSet.

Companies on the bench-mark are seen recordingearnings per share of$112.70, up more than $10from the current recordlevel of $102.56 for 2012.

Drilling down into theaverage price targets ofeach company in the S&P500 translates into the indexrising to 1,602.47, a gain of11.6 per cent from wherestocks currently sit.

Yield-seeking equityinvestors in 2012 haveshown strong interest inhigh-dividend paying stocksbut a notable laggard hasbeen the utilities sector.

The sector has dropped1.7 per cent so far and

remains the only S&P 500industry measure to residein negative territory for theyear-to-date.

The 31 companies in thesector group pay an averagedividend yield of 4.2 percent and strategists saythat is a compelling offerfor investors.

“Any income related toequity exposure is the wayto go in 2013,” says JackAblin, chief investmentofficer at Harris PrivateBank.

David Mertens, principalat Jensen Investment Man-agement, says that, in thehunt by investors, large div-idend stocks providefair value and are a good

to notch the biggest returnsfor the year as accommoda-tive Federal Reserve mone-tary policy has helped bol-ster lenders.

But after leading theindustry groups on the S&P500 for the year, the sectormust overcome regulatorypressure and low interestrate constraints in 2013 torise further.

Analysts at KBW saydespite the outperformancein 2012, financials will con-

This is the final Trading Postof 2012. So many potentialtrading nuggets to impart, solittle time . . . So here’s a niceand concise list of interest.●Go short copper above$8,500 a tonne, saysBarclays. A Chinese inventoryoverhang and recoveringlevels of red metal supplywill keep the price in check.●Stock market volatility ischeap, buy some puts, saysMarex Spectron. “Downsideskew [in index options] isnow at levels that have sofar this year always led todownside in equity markets.”●Go long Bunds versusTreasuries and Japanesegovernment bonds, arguesMorgan Stanley. The weakEuropean economy and anaccommodative EuropeanCentral Bank “provide arelatively better supportivebackdrop” for German paper.Better US growth will harmTreasuries, while a “moreactivist fiscal and monetarystance in Japan may finallyallow JGB yields to rise”.●The Aussie dollar is“already stretched” and“terms of trade are likely tomove against the AUD overthe next year, judging bycommodity price forecasts”,says Lloyds. Use the Mexicanpeso as a proxy for USeconomic outperformance,selling AUD/MXN, now 13.42,for a target of 12.00.

jamie.chisholm@ft.comRolling global overview at:www.ft.com/markets

News analysisUS equity resilienceis no longer beingunderestimated, sayArash Massoudiand MichaelMackenzie

tinue to trade at a discountto long-term averages untileconomic growth acceler-ates or expectations of arise in interest rates set in.

While rates may not movein the short run, some sayan accommodative FederalReserve may well continueto be a boon for stocksin 2013. “Investors havenot had to pay a lot ofattention to what theyowned given all theliquidity efforts of central

banks,” says Mr Mertens.Further support for

stocks may come fromeasier year-on-year salescomparisons after a wave ofcompanies fell short of fore-casts for 2012.

Vadim Zlotnikov, chiefmarket strategist at Alli-anceBernstein, says the sig-nificant number of negativerevisions in 2012 to top-lineresults will mean thatmany companies have alower bar to cross. “In the

absence of a recession, youcan expect revenue growthto beat forecasts for manycompanies next year.”

Still, others lament thejob of setting firm bench-mark forecasts for the S&P500. Mr Parker says: “Wewish we didn’t have to set ayear-end target. Having hada very accurate one in 2011and a pretty bad one in2012, we are livingproof there is a negativeasymmetry.”

FT graphic

Taking stock

Source: Bloomberg

S&P 500 sector performancePercentage change (year-to-date)

26.9% 22.0% 16.8% 13.9%

12.9% 10.6% 9.2% 3.9% 1.7%

13.2%

FinancialsConsumer discretionary Healthcare

Informationtechnology

MaterialsIndustrials Energy Utilities Consumer staples

Telecom services

Russian capital outflows may not be as big as reportedbeyondbrics, the FT’s emerging markets hub

Huge capital outflows havebeen a glaringly visible signof Russian business people’sdistrust of president VladimirPutin’s rule, writes StefanWagstyl. Worried aboutcorruption, property rightsand the rule of law, the richhave been funnelling theirmoney abroad. Right?

Wrong, says a studypublished this week thatargues Russian outflows areonly half as big as officiallyreported, due to peculiaritiesin Russia’s statistics.

Only $40.5bn of the$80.5bn recorded as netoutflows last year are actualoutflows, says the report,carried out by the Russiangovernment’s DirectInvestment Fund, Ernst &Young, the internationalaccountancy firm, and aresearch centre atLomonosov Moscow stateuniversity.

The authors deduct fromthe official figure more than$10bn that went into foreignmergers and acquisitions byRussian companies; $6bnspent on purchases ofaircraft registered abroad;$6bn in foreign banksubsidiaries’ support for theirparent groups; $9.9bn inso­called errors andomissions; and $7bn­$9bn infunds transferred by Russiancompanies into offshorestructures, often created for

reinvesting funds back inRussia.

Once such adjustments aremade, Russia’s capitaloutflow is “comparable tothat of many export­orientedeconomies such as Kuwait,Norway and Japan”.

The report also argues thatthe standard explanation forRussia’s capital outflows –the poor businessenvironment – does not holdwater. The authors say:“there is no significantstatistical relationshipbetween investment climateindicators and the [capitalflows] indicator calculated bythe Central Bank of Russia”.

Russia’s deputy financeminister Alexei Moiseevpraised the report, saying

Russia had to bring itscapital­outflow calculation inline with internationalstandards.

But the central bank is notrushing to rewrite itsnumbers. Central bankchairman Sergei Ignatiev saidRussia’s unfavourableinvestment climate was a bigfactor behind huge capitalflight from the country.

The bank studied othercountries and found Russiastood out. Most developedeconomies saw outflows asinvestors looked foropportunities abroad. Mostemerging nations postedinflows as they attractedfunds searching for newopportunities.

“Russia falls out of thislogic. This requiresexplanation. Net capitaloutflow of 4 per cent of GDPover a period of severalyears is a strange thing andis related to specific Russiancircumstances, including theunfavourable investmentclimate,” Mr Ignatiev said,according to RIA Novosti, thenews agency.

Mr Ignatiev said Russia’scapital outflow reached$59bn in January­November2012 and added that thecentral bank was sticking toits 2012 capital flight forecastof $60bn­$65bn.

www.ft.com/beyondbrics

By Tracy Allowayin New York

Morgan Stanley is to investin a futures exchange, in asign that big investmentbanks are preparing for ashift away from traditionalover-the-counter deriva-tives.

The bank “plans to makea strategic equity invest-ment” in Eris Exchange.Morgan Stanley did not dis-close the size of its plannedstake but two people famil-iar with the deal said itwould be a minority.

Eris specialises in “swapfutures” and was createdby five proprietary tradingfirms including Getco, DRWHoldings and Infinium Cap-ital Management.

In September the Chica-go-based exchange won fur-ther investment from assetmanagers Fidelity and StateStreet, but yesterday’s dealwith Morgan Stanley willbe the first announcedinvestment in Eris from alarge swap “dealer” bank.

“It’s evidence of banksand dealers and tradingdesks leaning into the newregulatory and market real-ity that’s coming,” saidNeal Brady, chief executiveof Eris. “Some have chosennot to adapt to these reali-ties but I think MorganStanley is seeing the waythe world is evolving.”

Derivatives such as inter-est rate swaps have histori-cally traded “over the coun-ter” (OTC) with investment

banks building the custom-ised risk management prod-ucts for their clients inreturn for hefty fees. How-ever, with new federal ruleslooming, some market par-ticipants are forecasting ashift away from OTC swaps.

The new rules, part of theDodd-Frank reform, requirethat OTC swaps move toregulated trading platforms.As swaps become moreheavily regulated, someinvestors are looking tofutures, which can also helpinvestors hedge their riskbut are more standardisedand easily traded onexchanges, as a potentialreplacement.

“As the traditional OTCrates swap market under-goes significant structural,

economic and regulatorychanges, Morgan Stanleybelieves that Eris Exchangeand its futurised swaps areideally suited to provide ourclients with flexible alterna-tives,” said Patrick Haskell,the bank’s head of liquidflow rates in the US.

Morgan Stanley will alsobecome an “anchor bankliquidity provider” on theEris platform. That meansthe bank will start standingbetween futures swaptrades on the platform earlynext year.

“It does feel like there is awave of interest in thefutures model,”said a deriv-atives specialist at a rivalinvestment bank beforeyesterday’s announcementwas made.

Morgan Stanley points the waywith Eris Exchange stake plan

The central bank is not in arush to rewrite its numbers

backstop for portfolios.“We prefer to favour compa-nies that are growing theirdividend,” he adds.

Jensen’s current portfolioincludes 29 groups that gen-erate significant cash flowwith a return on equity ofmore than 15 per cent ineach of the past 10 years.

Those calls may provetimely if investors flee risk-ier assets in the event USpoliticians fail to resolvethe fiscal cliff of spendingcuts and tax hikes set tokick in on January 1.

Others say even a modestdeal may not prove to begood enough in the near-term, says Barry Knapp,chief US equity strategist atBarclays.

In spite of a 2013 year-endforecast of 1,525 for the S&P500, Mr Knapp warns thatthe first significant marketmove next year may well bedownward, given the lowprobability that Republi-cans and Democrats settleon a grand bargain thatputs the US public sectordebt on a sustainable path.

To avoid that, Mr Knappis recommending investorsconsider technology stocks,which are set to finish 2012near the middle of the packamong industry groupsafter a sharp fourth-quartersell-off.

To find value, he says,investors must look beyondthe sector’s most favouredcompanies, including Appleand Google, and insteadconsider those that couldbenefit from a rebound incorporate spending nextyear.

That includes companiessuch as Hewlett-Packardand Intel, which are amongthe biggest laggards on theDow Jones Industrial Aver-age in 2012. Financials, ledby regional banks, are set

Trading postJamie Chisholm

Mexican peso

Source: Bloomberg

Against the Australian dollar(A$ per peso)

2008 09 10 11 128

10

12

14

More news atFT.com

●What’s bugging gold?Gold prices have barelymoved this year. Is itbecause monetary policysettings are now so lowthat there is simply nofurther for them to drop?www.ft.com/alphaville

●Resource nationalismVideo: Shifts in commodityprices can undermine acountry’s resource leverageand the ways in whichrevenue can be retainedwithin domestic borderswww.ft.com/authersnote

●EM corporate bondsEmerging market sovereignbond markets have seenrecord inflows this year,yet bond issuance is anoption available only to thelargest EM corporationswww.ft.com/beyondbrics

●Follow us on Twitter:@FTAlphaville

●Markets LiveRead Paul Murphy andBryce Elder every weekdayfrom 11am

‘Any incomerelated to equityexposure is theway to go in 2013’

Jack Ablin,Harris Private Bank

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DECEMBER 21 2012 Section:Markets Time: 20/12/2012 - 20:41 User: bhaskarand Page Name: ICNCOMMS USA, Part,Page,Edition: EUR, 25, 1

26 ★

MARKETSFriday December 21 2012

Source: Thomson Reuters Datastream

Hong KongHang Seng index (’000)

EuroAgainst the dollar ($ per €)

Jan Dec20121.20

1.22

1.24

1.26

1.28

1.30

1.32

1.34

Aug2011

Dec201216

18

20

22

24

◄ The euro ended thesession just a shadehigher against the dollar,after earlier threateningto break back above$1.33 following therelease of some positiveUS economic data

► Hong Kong stocksended at their best levelssince the start of Augustlast year, led by gains forheavily­weighted banks,although trading volumeswere relatively light

Equities struggle as f iscal cliff looms again

By Dave Shellock

Renewed uncertainty aboutnegotiations over the loom-ing US fiscal cliff left stockmarkets on both sides ofthe Atlantic struggling fora clear direction, although abatch of broadly encourag-ing economic data offeredsome support.

The final reading of USthird-quarter GDP growthwas revised up to 3.1 percent from the previous esti-mate of 2.7 per cent.

Peter Newland, economistat Barclays, said the detailsof the GDP report were

encouraging, with real finalsales growth accounting forall of the upward revision.

“All in all, while GDPgrowth is likely to be some-what softer in the fourthquarter, the stronger finalsales backdrop in the thirdquarter leaves growth on asolid footing and we expectthe picture of modestlyabove potential growth toremain in place,” Mr New-land said.

There was further posi-tive news on the US hous-ing market as data showedexisting home sales climb-ing 5.9 per cent in Novem-ber to a three-year high.

“The bottom line isthat nothing in today’sdata refutes the idea of ahousing recovery andquite frankly, it servesto reinforce our moreoptimistic views,” saidDan Greenhaus, chief

global strategist at BTIG.Meanwhile, the Philadel-

phia Federal Reserve’sgeneral economic indexjumped to an eight-monthhigh in December. “The

rebound in the Philly Fedindex appears to be due tofactories catching up on thelost activity caused bysuperstorm Sandy inNovember,” said Paul Dales

at Capital Economics.“The recent improvement

in global demand suggeststhat, once the dust of thestorm and fiscal cliff settles,manufacturing output will

start expanding again. Butthe global recovery willonly go so far, meaning thatUS manufacturing will notenjoy a renaissance in2013.”

But the encouraging fig-ures on the US economywere overshadowed by freshdoubts that legislatorswould reach agreement onthe US budget in the near-term.

Philip Marey, senior USstrategist at Rabobank, saidwhile this week’s develop-ments in Washington hadbeen encouraging, negotia-tions appeared to haveground to a halt.

“However, the ideologicaltrenches have been left andthe new battlefield is moreabout numbers than aboutdogmas,” he said. “Thatshould give both parties agood chance to make a dealon the reduction of the fis-

cal cliff around the turn ofthe year.”

However, the uncertaintyleft the S&P 500 equityindex barely changed atmidday in New York, whilethe pan-European FTSEEurofirst 300 index edged upless than 0.1 per cent.

In Tokyo, the Nikkei 225Average fell 1.2 per cent asinvestors booked some prof-its on the market’s recentstrong rally but also showedsome disappointment thatthe latest policy move fromthe Bank of Japan had notbeen more aggressive

The BoJ expanded itsasset-buying programme byY10tn, in line with expecta-tions, but stopped short ofraising its inflation target –for now at least.

On the currency markets,the yen rallied against thedollar. But analysts saidany bounce in the yen was

likely to be temporary.“With prime minister-

elect [Shinzo Abe] takingcharge on December 26,expectations will be highthat the BoJ delivers amore credible 2 per centinflation target in January– keeping the yen underpressure,” said ChrisTurner, head of forex strat-egy at ING.

The uncertainty over theUS fiscal outlook promptedmodest buying of govern-ment bonds, with the 10-year Treasury yield down 1basis point at 1.79 per cent.

Industrial commoditiesretreated, with Brent oildown 32 cents at $110.04 andcopper sliding 2 per cent to$7,772 a tonne, its lowestlevel in nearly a month.Gold fell more than 1 percent to $1,641 an ounceamid end-of-year liquidationby investors, dealers said.

GLOBAL OVERVIEW

US GDP growthrevised up to 3.1%

10­year Treasuryyield declines 1bp

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 Dec20125700

5800

5900

6000

1380

1400

1420

1440

1080

1100

1120

1140

9.2

9.4

9.6

9.8

10.0

10.2’000

Changeon day

+0.07%

Changeon day

+0.06%

Changeon day-0.05%

Changeon day-1.19%

BoJ bond buying lifts yenCURRENCIES

By Alice Ross

The Japanese yen roseagainst other big currenciesafter the Bank of Japanexpanded its asset purchaseprogramme but made nochanges to its inflation tar-get, dashing hopes the cen-tral bank would take amore aggressive stance.

The dollar fell more than0.6 per cent to hit a sessionlow of Y83.83 as the BoJannounced it was increas-ing its bond-buying schemeby Y10tn. It later recoveredand was down 0.2 per centon the day at Y84.32.

Some had speculated thecentral bank could do moreafter elections at the week-end ushered in a new gov-ernment that has vowed toget tougher on deflation.

Incoming prime ministerShinzo Abe has said he

would ask the BoJ to raiseits inflation target from 1 to2 per cent. The BoJ said itwould reconsider its targetbut made no immediatechanges.

Analysts were expectingthe strength in the yen tobe short-lived, however.“The big moves come eitherfrom the appointment of anew BoJ governor and dep-uty, or from the Ministry ofFinance, so a BoJ meetingthat delivered more of thesame old policies is not sur-prising,” said Kit Juckes,foreign currency strategistat Société Générale.

“As such, the pullback indollar-yen is likely to belimited. There are yen sell-ers on any bounce.”

The euro remained sus-ceptible to developments inthe US as fiscal cliff talksraged on. The single cur-rency earlier shrugged offpoor Italian retail sales data

to reach a session high of$1.3295 against the dollar.But it was later just 0.1 percent higher at $1.3236 andwas 0.1 per cent loweragainst the pound at£0.8132.

The Australian dollarrose towards $1.05 againstthe US dollar after falling inprevious sessions, gaining0.1 per cent to $1.0499.

“The euro appears to bebenefiting from positionadjustment heading intoyear-end with speculatorscutting back modest shorteuro positioning towardsneutral,” said analysts atBank of Tokyo-Mitsubishi.

“The high beta Australianand New Zealand dollarhave also underperformedover the past week despiteimproving risk sentiment asspeculators likely trimrecord long positions.”

www.ft.com/currencies

● US equitiesWall Street had a choppysession as uncertainty overUS budget negotiations madefor a nervous session. NYSEEuronext rose sharply afterIntercontinentalExchangesaid it would buy the bourseoperator for $8.2bn

● UK equitiesCarnival fell more than 6 percent after the cruise lineoperator provideddisappointing guidance for2013. The wider marketstruggled for traction asinvestors waited for freshdirection from the US

● European equitiesWorries that US fiscal cliffnegotiations may have stalledkept the Eurofirst 300trapped within a tight range.Ericsson fell 1.8 per centafter it took a $1.2bn chargerelated to its joint venturewith STMicroelectronics

● Asian equitiesThe Nikkei retreated followingWednesday’s strong advanceamid some disappointmentthat the Bank of Japan hadnot taken more aggressiveaction at its policy meeting,but it still managed to finishabove the 10,000 level

Markets update

NYSE Euronext rises after ICEto buy exchange group for $8.2bnBy Anora Mahmudova andArash Massoudi in New York

NYSE Euronext sharessoared after the globalbourse operator saidit would sell itself to Inter-continentalExchange, thefutures exchange, in a dealworth $8.2bn in cash andshares.

Shares in the operator ofthe 200-year-old New YorkStock Exchange rose 33.1per cent to $32.02.

ICE, a 12-year-old com-pany, has grown by offeringtrading in energy, emis-sions and commodities aswell as listed interest ratederivatives, the world’slargest asset class.

Its shares initially rosebut then dipped 0.9 per centto $127.19 by midday in NewYork.

Roger Freeman, analystat Barclays, said: “Webelieve there are opportuni-ties for both companies toleverage both intellectualtalent and a broader prod-uct set to grow their busi-nesses on a combined basis

more than either could doalone, and certainly interestrate futures and swapsappear to be a significantfocus according to manage-ment.”

NYSE-rival Nasdaq OMXgroup traded higher on thenews, up 2.7 per cent to$25.89, while CBOE Hold-ings, parent company of theChicago Board OptionsExchange, rose 4 per cent to$30.68 as some analysts saidit might be a potential can-didate in further exchangedealmaking.

CME Group, the largestUS-based exchange operatorby market value, fell 2.6 per

cent to $51.25. The bench-mark S&P 500 index was 0.1per cent higher at 1,437.15.

The Dow Jones IndustrialAverage was unchanged at13,254.18. The Nasdaq Com-posite lost 0.1 per cent to3,040.59. Apple, the heaviestweighted stock on the techbenchmark, lost 1.3 per centto $519.77.

Overall, US equity mar-kets were muted as positiveeconomic data wereeclipsed by the pall cast bythe stalled negotiationsover preventing the fiscalcliff at the end of the year.

The US economy grewfaster than previously fore-

cast in the third quarter,according to the latest fig-ures. GDP expanded at a 3.1per cent annual rate,revised up from an initial2.7 per cent. Jobless claimsnormalised after surging inthe aftermath of superstormSandy. Initial claims forunemployment benefitsrose 17,000 to a seasonallyadjusted 361,000, accordingto the Labor Department.

In earnings news, CarMaxrose sharply after the usedcar retailer reported third-quarter earnings whichbeat Wall Street estimates.

The company citedimproving customer senti-ment, increased availabilityof credit and a larger inven-tory for a boost in sales.Shares in CarMax gained8.8 per cent to $37.91.

ConAgra also rose afterthe company’s quarterlyearnings beat estimates,helped by sales in its con-sumer food business.

The owner of the HealthyChoice meals brandreported a 17 per centincrease in profits. Sharesin ConAgra climbed 1.1 percent to $30.29.

In contrast, Bed Bath &Beyond suffered a sharpdrop as the home furnish-ings retailer lowered earn-ings forecasts for the firstquarter of next year. Theshares slid 8.3 per cent to$55.25.

Shares in Herbalife, thenutritional supplementdirect seller, came underpressure for a second dayafter hedge fund managerBill Ackman confirmedhe was betting against thestock.

Mr Ackman presented hisarguments yesterday onwhy he had a taken a shortposition on Herbalifeshares, saying that the com-pany had grown quickly inrecent years without beingable to justify the growth.

Herbalife shares lost 6.1per cent to $35.08, reachingtheir lowest point for thepast year.

Financial stocks were thebest performing industrygroup on the S&P 500, ris-ing 0.7 per cent. Bank ofAmerica led the risersamong big Wall Streetbanks as its shares gained1.9 per cent to $11.40.

WALL STREET

Source: Thomson Reuters Datastream

NYSE EuronextShare price ($)

Dec2011

Dec201222

24

26

28

30

32

Key indicators

Day’sIndices Close change

S & P 500 1436.93 +1.12

DJ Industrials 13246.25 -5.72

Nasdaq Comp 3039.76 -4.60

Russell 2000 849.75 +1.86

VIX 17.55 +0.19

US 10 yr Treas Bd 1.78 -0.03

US 2 yr Treas Bd 0.27 -0.01

By Bryce Elder

ITV hit a five-year high in aflat London market yester-day on hopes of a start-of-year boost to advertising.

A dispute between Chan-nel 4 and GroupM, themedia buying arm of WPP,was already helping ITV’s2013 sales, analysts said.

GroupM, which buysroughly a third of UK air-time, reportedly wantsimproved terms on its dealwith C4 when the currentcontract expires in January.

With no resolution insight, GroupM has alreadybeen diverting ad spendingfor January to other chan-nels including ITV, accord-ing to Credit Suisse.

ITV closed up 3.1 per centto 107p. The broadcaster’s57 per cent gain this yearhas made it the second-bestperforming non-financialFTSE 100 stock after Whit-bread (up 1.6 per cent to£25.21 yesterday and by 61per cent for 2012 so far).

The wider market heldsteady at around a nine-month high, with the FTSE100 drifting 3.25 points to5,958.34.

Leading the fallers, Carni-val faded 6.1 per cent to£23.91 after the cruise ship

operator’s 2013 guidancedisappointed.

Precious metals minerslost ground as strongerthan expected US datadamped stimulus hopes,sending gold to its lowestlevel since August. Rand-gold Resources was down2.3 per cent to £59.65 andPolymetal Internationalfaded 1.8 per cent to £11.59.

Antofagasta fell 1.2 percent to £13.49 after a down-grade to “neutral” on valua-tion grounds from Mac-quarie.

Among the gainers, Cen-tamin rose 3 per cent to42.7p after the miner said itwas set to resume opera-tions having resolved anexport ban and suspensionof fuel deliveries.

Weir Group climbed 2.8per cent to £18.63 after the

pump maker agreed to payup to $385m for Mathena,which rents pressure pump-ing equipment for USonshore drilling.

A Citigroup upgrade to“buy” lifted GKN 1 per centto 229.3p.

Intercontinental Hotelsrose 3.1 per cent to £17.10after industry data forNovember suggested robustUS demand, with revenueper average room rising5.4 per cent year-on-year.

Tullow Oil added 1.5 percent to £12.46, having beenincluded among RBC’s 30top global ideas for 2013. Itvalued the stock at £13.04on a sum-of-the-parts basis.

Vesuvius, the ceramicsbusiness formerly known asCookson, moved higher by8.6 per cent to 352p follow-ing Wednesday’s demergerof its electronics businessAlent, down 1.5 per cent to305p.

Data hosting group Telec-ity fell 3.1 per cent to 775.5pafter the resignation thisweek of Adriaan Oosthoek,its UK managing directorfor the past seven years.

A share sale by Mr Oost-hoek earlier this month hadraised concerns about trad-ing in the wake of capacityissues in the third quarter.UBS played down thoseconcerns.

EUROPE

ITV hits high on hopes foradvertising boost next yearLONDON

Centamin

Source: Thomson Reuters Datastream

Share price (pence)

Dec2011

Dec201220

40

60

80

100

UBS comes underfurther pressure

D.E Master Blenders,cheered by news onWednesday that Joh ABenckiser, a German hold-ing company controlled bythe Reimann family, hadincreased its stake in thegroup from 12 per cent to 15per cent.

The shares rallied 1.8 percent to €8.97, against a 0.1per cent gain on the XetraDax to 7,672.10.

The biggest mover acrossEurope was Dutch oil serv-ices group SBM Offshore.The shares surged 18.6 percent to €10.97 in whatappeared to be a relief rally.

The Dutch group said itwould take a $629m write-down for its Norwegian oilplatform project developedfor Talisman Energy andLotos. It also said it wouldissue new shares.

The purchase by ChinaThree Gorges of a windenergy arm of Energias dePortugal helped to buoy thepower company’s shares.The Chinese utility, whichhas a 21 per cent stake inEDP, yesterday bought a 49per cent stake in EDP’swind energy arm for €359m.

Credit Suisse initiatedcoverage on EDP with an“outperform” rating and atarget of €2.70 on theshares, which rallied 2.8 percent to €2.35.

By Alexandra Stevenson

Investors continued to sellout of Swiss bank UBS asnew details emerged aboutthe bank’s involvement inthe rate-fixing scandal.

The Hong Kong MonetaryAuthority said yesterdaythat it was probing the pos-sibility of misconduct in theSwiss bank’s Hong Kongbranch.

UBS agreed to pay a$1.5bn fine to regulators onWednesday to settle allega-tions that it had manipu-lated the key Libor inter-bank lending rate.

Shares in UBS slid 1.1 percent to SFr15.03.

ThyssenKrupp lostground after DeutscheBahn, Germany’s nationalrail company, filed a €550mclaim for compensationagainst four track suppliers,including ThyssenKrupp,for operating an alleged car-tel. The news, which camejust a week after the steel-maker reported a €5bn netloss for the year, sent theshares falling 1.8 per cent to€18.24.

The wider FTSE Eurofirst300 gained a modest 0.1 percent to 1,142.80, reaching anew 2012 high.

Investors bought into

DECEMBER 21 2012 Section:Markets Time: 20/12/2012 - 19:26 User: kallmanng Page Name: WSM2 ASI, Part,Page,Edition: EUR, 26, 1