Financial Times (Europe): December 22, 2022 PDF
Preview Financial Times (Europe): December 22, 2022
INTERNATIONAL NEWSPAPER OF THE YEAR THURSDAY 22 DECEMBER 2022 EUROPE Lessons for pensions from the gilts crisis The unease behind Argentina’s celebrations BIG READ, PAGE 15 LUCINDA ELLIOTT, PAGE 16 In Washington Briefing Zelenskyy iMuskdefends‘cutting travels abroad costslikecrazy’atTwitter ElonMuskhasarguedthatthe socialmediaplatformwouldhave negativecashflowof$3bnayear VolodymyrZelenskyywalksalongside wereitnotforhisactions. —PAGE5; RufusGifford,chiefofprotocolofthe TESLASLIDE,PAGE6;LEX,PAGE18 US,ashearrivesinWashingtonyester- day on his first trip outside Ukraine iPutinbolsterswarchest sinceRussiainvadedhiscountrymore Russia’spresidenthashitbackat than300daysago. claimstheKremlinhasleftits The Ukraine president was set to forceswithoutkeyequipment, meet Joe Biden, his US counterpart, sayingtheUkrainewarcouldbe beforeaddressingajointsessionofCon- financedwithout“limits”.—PAGE2 gresslastnight. Zelenskyy landed at a critical iTrumptaxesunveiled momentinthefightagainstRussia’swar Asummaryofreturnshasshown asofficialsinKyivwarnedMoscowwas DonaldTrumppaid$1.8mnin preparingforawinteroffensive. federalincometaxbetween2015 TheUkraineleaderwroteinaTele- and2020,aswellasvigoroususe grampost:“IaminWashingtontodayto oflossesanddeductions.—PAGE2 thanktheAmericanpeople,thepresi- dentandtheCongressfortheirmuch- iChinesedeficithitsrecord neededsupport.” Beijing’sbudgetshortfallhashita Shortlybeforehisarrival,theBiden recordhighasameltdowninthe administrationannounced$1.85bnin propertysectorandXiJinping’s newlethalassistanceforUkraine. recentlyeasedzero-Covidpolicy Zelenskyyboostedpage2 weighedontheeconomy.—PAGE4 Reuters iBrusselsscandaldeepens US tech retreat from European offices TheEUcommissionhassaidit willaskex-memberDimitris Avramopoulostoexplainhisrole foracampaigngroupattheheart ofaQatar-linkedscandal.—PAGE2 piles pressure on continent’s landlords iFTXfoundersetforUS SamBankman-Friedhastolda Bahamascourthewillconsentto USextradition,pavingtheway forhimtofacechargesoverthe failedcryptoexchange.—PAGE6 3 Rapid expansion halts 3 Bid to cut space in London and Dublin 3 Homeworking spurs pullback Datawatch Festivefretting GEORGEHAMMONDAND rates,anincreasinglybleakeconomic saidChrisLewis,whoadvisesoffice permanently,accordingtoaperson SuchmovesmirroreffortsintheUS, CRISTINACRIDDLE—LONDON outlookandincreasedhomeworking. occupiersatpropertycompanyDeVono familiarwiththeoperations. wherethecompanyistryingtofindten- %whosaypricerisesmake thisChristmasmorestressful BigTechgroupsareditchingofficesthat Meanwhile, demands from staff to Cresa.“Theamountofspacetakenwas Googleisalsoexploringsublettingor antsforitsbuildinginFremont,Califor- Romania arepartoftheirEuropeanheadquarters workremotelyduringthecoronavirus taken by a really ambitious view of abandoningmoreofitsexistingrented nia.Ithasalsopausedaplantoexpand Italy asacoolingeconomybringsthesector’s pandemichaveturnedsometechcom- headcount.” officespaceacrossLondon,accordingto inAustin,Texas,andisinsteadsublet- Philippines France yearsofrapidexpansiontoahalt. paniesintoaccidentallandlordsthatare Googleplanstoleaveatleastoneofits people familiar with the company’s ting.Metahasalsoterminatedleaseson Singapore Google’sparentAlphabet,Facebook nowjostlingtosubletsurplusspaceina Londonoffices—inBelgraveHouse, plans.Googledeclinedtocomment. twoofitsthreeofficesinManhattan, UK parent Meta and enterprise software challengedpropertymarket. Victoria—nextyear,accordingtothree Meta signed a lease on a 310,000- NewYork. Spain Australia giant Salesforce are among the US “Walkroundanyofthose[BigTech] peoplefamiliarwiththematter. squarefootofficeinFitzroviaincentral Salesforce, which owns workplace Germany groupsseekingtoabandonleasedoffice officesandthereisahugeamountof BelgraveHouseisitsformerLondon Londonlastyearbutisnowtryingto messaging platform Slack, confirmed US Chile spaceinLondonandDublin,according spacegivenovertonon-feegenerating headquartersbutGoogle’sleaseacross sublettheblockwithouteverhaving thatitwillsubletpartofafloorinits Brazil topeoplefamiliarwiththeplans. functionswhichlookverygenerous,” severalfloorsonthebuildingwasdraw- moved in, according to people with towerintheCityofLondon. 0 20 40 60 80 Themovescomeasthecompanies ingtoanend,thesepeoplesaid. knowledgeofthedeal.Thecompanyis AmazonWebServicesandMicrosoft Source:Ipsos(Nov2022) respondtothedownturnintechstocks That move is part of a broader alsolookingfornewtenantsforhun- intendedtoexpandinLondonbefore Pricerisesarecausingextrastressinthe Alphabet,Metaand withcostcuts,includingbyshedding shake-up,withthecompanyintending dreds of thousands of square feet in thepandemicbuthaveputtheplanson run-uptoChristmas,accordingtoapoll jobs.Thepullbackisanewsetbackfor businesssoftwaregiant tomovemoststaffintoits£1bnofficein Dublinwhichithadintendedtooccupy. hold, according to one office leasing of12countries.Onaverage,55percent landlordsalreadyfacingtheirbiggest King’sCross,nowunderconstruction. ChiefexecutiveMarkZuckerbergsaid agentinthecapital. saytheyaremoreanxiousaboutprices Salesforceareseekingto challengesincethe2008financialcrisis. The closure has been accelerated thecompany’s“realestatefootprint” Amazon and Microsoft did not thanlastyear.Romaniansarethemost Officevaluesaretumblingonbothsides ditchleasedofficespace becauseonein10ofGooglestaffhas wouldbe“shrunk”tocutcosts,with immediately respond to requests for stressed,Braziliansaretheleastworried oftheAtlanticbecauseofrisinginterest chosen to work from home hybridworkersaskedtosharedesks. comment. Wood’s Ark fund sheds nearly $50bn in assets since 2021 peak after tech sell-off HARRIETAGNEW—LONDON whichinAprildowngradedtheETFto shapingthefuture,coveringareasrang- “negative”. ingfromspaceexplorationandfintech, CathieWood’sArkInvestmentMan- Thesteepfallhighlightshowgrowth toroboticsandthegenomicrevolution. agement has lost almost $50bn in investors such as Wood have been TheflagshipARKK’ssharesaredown assets from its stable of exchange wrongfootedthisyearastheUSFederal roughly65percentthisyear,lingering Buyoutfirmsbargeinto tradedfundssinceits2021peak,high- Reserveandothercentralbanksglo- atafive-yearlowandunderperforming lightingthescaleofthisyear’slossesin theUSemergencyroom bally called time on a decade-long thetech-heavyNasdaq,whichisdown speculativetechstocks. periodofcheapmoneywithaseriesof 32percentinthesameperiod. AnalysisiPAGE7 TotalassetsacrossArk’snineETFshave interestratehikestocombatinflation. “Ahugedriveroftheunderperform- slumped to $11.4bn from a peak of Thishaspromptedasell-offintech ancehasbeenstylisticinnature...glo- $60.3bninFebruarylastyear,according stocks,notablyfast-growingandloss- bally,growthstockshavesufferedand Austria €4.30 Morocco Dh50 toMorningstar. makingcompanies,whichareseenas valuestockshavebeenmoreresilient,” Bahrain Din1.8 Netherlands €4.30 Thiswasledbysteepdeclinesinits susceptibletorisesininterestratesthat saidGreengold. Belgium €4.30 Norway NKr45 Croatia Kn32/€4.25 Oman OR1.60 flagshipArkDisruptiveInnovationETF, diminishtheirpotentialfuturereturns. ARKK’s three largest positions are Cyprus €4.00 Pakistan Rupee350 knownbyitstickerARKK,whichhas Investorshaverotatedintovaluestocks videoplatformZoom,aCovid-19win- CzechRep Kc120 Poland Zl24 lostabouttwo-thirdsofitsvaluethis thatlookcheapcomparedwithmetrics nerthathasgivenupitspandemic-era Denmark DKr43 Portugal €4.00 Egypt E£80 Russia €5.00 yearandisontrackforitsworst-ever suchasbookvalueandprofits. gains; Exact Sciences, a provider of France €4.30 Serbia NewD530 annualperformance. ARKKisthelargestofagroupofstrat- molecularcancerscreeningandprog- Germany €4.30 Slovenia €4.00 “ArkInnovation’sresultshavebeen egiesthatcombineanETFstructure nostic testing, and electric-vehicle Greece €4.00 Spain €4.00 Hungary Ft1350 Switzerland SFr6.50 horrendousthisyearandverydisap- with an ability to pick stocks. Wood makerTesla,whosesharesaredown India Rup220 Tunisia Din7.50 pointing for investors,” said Robby seekstoidentifythehandfulofcompa- morethan60percentthisyear. Italy €4.00 Turkey TL50 Greengold,astrategistatMorningstar, niesthatcanmakeexponentialgainsby Arkdeclinedtocomment. Luxembourg €4.30 UAE Dh23 Malta €4.00 World Markets SubscribeInprintandonline www.ft.com/subscribetoday STOCKMARKETS CURRENCIES GOVERNMENTBONDS email:[email protected] Dec21 Prev %chg Pair Dec21 Prev Pair Dec21 Prev Yield(%) Dec21 Prev Chg Tel:+442077756000 S&P500 3876.03 3821.62 1.42 $/€ 1.061 1.064 €/$ 0.942 0.940 US2yr 4.24 4.27 -0.03 Fax:+442078733428 NasdaqComposite 10706.09 10547.11 1.51 $/£ 1.211 1.214 £/$ 0.826 0.824 US10yr 3.68 3.68 -0.01 DowJonesInd 33349.89 32849.74 1.52 £/€ 0.877 0.877 €/£ 1.141 1.141 US30yr 3.75 3.74 0.01 ©THEFINANCIALTIMESLTD2022 FTSEurofirst300 1704.68 1677.27 1.63 ¥/$ 131.995 131.415 ¥/€ 140.106 139.820 UK2yr 3.71 3.74 -0.03 EuroStoxx50 3870.62 3802.49 1.79 ¥/£ 159.847 159.525 £index 78.485 78.813 UK10yr 3.57 3.59 -0.02 No:41,204★ FTSE100 7497.32 7370.62 1.72 SFr/€ 0.983 0.985 SFr/£ 1.122 1.124 UK30yr 3.85 3.89 -0.04 FTSEAll-Share 4095.42 4026.91 1.70 JPN2yr -0.02 0.01 -0.03 PrintedinLondon,Liverpool,Glasgow,Dublin, CRYPTO CAC40 6580.24 6450.43 2.01 JPN10yr 0.47 0.41 0.06 Frankfurt,Milan,Madrid,NewYork,Chicago,San Dec21 Prev %chg XetraDax 14097.82 13884.66 1.54 JPN30yr 1.54 1.57 -0.03 Francisco,Tokyo,HongKong,Singapore,Seoul, Bitcoin($) 16832.63 16903.72 -0.42 Nikkei 26387.72 26568.03 -0.68 GER2yr 2.51 2.50 0.02 Dubai Ethereum 1213.75 1216.69 -0.24 HangSeng 19160.49 19094.80 0.34 GER10yr 2.31 2.30 0.01 MSCIWorld$ 2592.86 2585.89 0.27 COMMODITIES GER30yr 2.19 2.18 0.02 MSCIEM$ 951.08 957.64 -0.68 Dec21 Prev %chg MSCIACWI$ 602.98 602.00 0.16 OilWTI$ 78.08 75.38 3.58 FTWilshire2500 4957.04 4949.64 0.15 OilBrent$ 82.00 79.80 2.76 Pricesarelatestforedition FTWilshire5000 38705.63 38644.54 0.16 Gold$ 1813.90 1790.80 1.29 DataprovidedbyMorningstar 2 ★ FINANCIAL TIMES Thursday22December2022 INTERNATIONAL US trip Capitol Hill Zelenskyy boosted by Biden missile pledge Trump paid $1.8mn in tax as losses hit WhiteHouseannounces Russianinvasion.OfficialsinKyivhave immediaterespitefromthemassRus- thebattlefield.TheUShascommitted stressthetimeisnotripeforanymoves $1.85bnofnewweapons, warnedMoscowisgearingupforawin- sianmissileanddroneattackssmashing tensofbillionsofdollarsinmilitary,eco- inthatdirection. $53mn over teroffensiveasUkrainefendsoffRus- Ukraine’spowerinfrastructure. nomicandhumanitarianassistanceto “Bidenisnotgoingtopressureorpush includingPatriotsystem sianattacksontwofronts:theeastand InadditiontothePatriotsystem,the UkrainesinceRussiainvadedUkraine Zelenskyytothenegotiatingtablebut presidency south,wheregrindingcombatbetween USwillforthefirsttimetransferJoint inFebruary. rather,heisgoingtoworkwithCongress themilitariesisunderway;andinthe DirectAttackMunitions,whichconvert Congressissettovotethisweekona andwithouralliestoputUkraineinthe FELICIASCHWARTZ—WASHINGTON skies, where Moscow has pummeled unguidedaerialmunitionsinto“smart spending bill that includes $45bn in bestpossiblepositiononthebattlefield VolodymyrZelenskyyarrivedinWash- Ukraine’scriticalenergyinfrastructure. additional funds for Kyiv.The Biden sothatwhenthetimeisripe,theyarein ingtonyesterdayforabrief,high-stakes TheUkraineleaderwroteinaTele- ‘IaminWashingtontoday administrationhasvowedtocontinue thebestpossiblepositionatthenegoti- JAMESPOLITI—WASHINGTON visit,onhisfirsttripoutsideUkraine grampost:“IaminWashingtontodayto supportingUkraine,withofficialsmak- ating table,” a senior administration SUJEETINDAP—NEWYORK tothanktheAmerican since Russia invaded more than 300 thanktheAmericanpeople,thepresi- ingpreparationsforaconflictthatcould officialsaidbeforeZelenskyy’svisit. DonaldTrumppaid$1.8mninfederal daysago. dentandtheCongressfortheirmuch- people,thepresidentand stretchintobeyondnextyear. TheKremlinsaidyesterdaythatitdid incometaxforthesixyearsbetween The Ukraine president was set to neededsupport.Andalsotocontinue Congressfortheirsupport’ However,Republicanleadersinthe notexpectanypositivedevelopments 2015and2020,ashedeclared$53mnin meet his US counterpart, Joe Biden, co-operation to bring our victory House of Representatives have inti- orchangesinKyiv’spositiononpeace netlossesovertheperiodspanninghis beforeaddressingajointsessionofCon- closer.” matedthatpassingadditionalaidfor talksafterZelenskyy’svisittoWashing- 2016campaignfortheWhiteHouse gresslastnight. TheWhiteHousewantsthevisitto bombs”,allowingUkrainianforcesto Kyivwillbemorechallengingnextyear ton. andthebulkofhistermaspresident. Shortlybeforehisarrival,theBiden showcaseUSsupportforUkraineasthe morepreciselytargetRussianmilitary when they take control of the lower “TheweaponssupplytoUkrainecon- administrationannounced$1.85bnin countryheadsintoatoughwinter. positions. chamberofCongress. tinuesandtheirrangeisexpanding.It ThedetailsofTrump’staxpayments new lethal assistance for Ukraine, Westernweaponrywillbecriticalfor TheUSwilltrainUkrainiantroopson The US administration, Ukrainian leadstotheconflictaggravationand came in a summary of his returns including the long-coveted advanced Ukraine. Kyiv has long sought the the Patriot system, probably in Ger- officialsandotherwesternallieshave doesnotbodeUkraineanygood,”said released by the Democratic-led US Patriotmissiledefencesystem. Patriotsystem,whichanalystssaywill many, for weeks before it arrives in hadquietconversationsaboutwhata spokespersonDmitryPeskov. House of Representatives ways and ZelenskyyarrivedinWashingtonata beapowerfuladditiontothecountry’s Ukraine.Itisexpectedtotakesome diplomatic solution could ultimately AdditionalreportingbyAnastasiaStognei meanscommitteethisweekafterfour criticalmomentinthefightagainstthe airdefences,althoughitwillnotoffer timebeforethesystemisoperationalon looklike,thoughWashingtonofficials inRigaandChristopherMiller yearsoflegalwrangling.Thepanelis expected to publish full redacted versionsofTrump’staxreturnsinthe comingdays. Invasion The summary, compiled by Con- Russia’s war chest for gress’snon-partisanjointcommitteeon taxation (JCT), showed Trump de- clarednotaxableincomefor2015,2016, 2017and2020,yearsinwhichheracked Ukraine campaign up$82mnincombinedlosses.Thetwo years for which he reported taxable income were 2018 and 2019, with unlimited, says Putin adjustedgrossincomeofnearly$29mn. Thedocumentsshowtheextentto which Trump aggressively used tax deductionsandreportedlossesinorder tolowerhistaxbillattheheightofhis politicalcareer. ANASTASIASTOGNEI—RIGA itseconomybecause“thereisnoneed” TheJCTsaidithad“noopinion”on POLINAIVANOVA—BERLIN for it, insisting he did not want to whethertheformerpresidentshould VladimirPutindismissedclaimsthe “repeatthemistakesofthepast”,when havepaidmoreorlesstaxbutdidnotea KremlinhasleftRussia’sarmedforces “wedestroyedoureconomyfordefence seriesofitemsonTrump’staxreturns. withoutkeyequipment,sayingthewar purposes”. Amongthemwereinterestincome inUkrainecouldbefinancedwithout Despitethewest’seffortstodeplete fromrelated-partyloansmadetosome “limits”andorderingthemilitarytobe Putin’swarchest,Russia’sbudgetdeficit ofTrump’schildren,includingIvanka, opentocriticismashisinvasionofthe in2022willbejust2percent,according EricandDonaldTrumpJr.TheJCTsaid countrynearsthe10-monthmark. totheministryoffinance.Thisissome- theseraised“thequestionofwhether thingitcancovereasilywithstatebor- theloanswerebonafidearm’slength “Themilitaryoperationhashighlighted rowingandincreasedspendingfromits transactionsorwhetherthetransfers issuesthatweneedtoworkonspecifi- $187bnsovereignwealthfund. weredisguisedgiftsthatcouldtrigger cally, [including] communications Inanattempttorespondtocriticism gifttaxandadisallowanceofinterest [and] automatisation,” the Russian ofthesupplyefforts,whichhaveseen deductionsbytherelatedborrowers”. presidentsaidyesterday. soldiersforcedtobuytheirownbasic Like many property developers, Speaking to the defence ministry, equipment,suchassocksandboots, Trump’sbusinessisstructuredthrough whichhasfacedunprecedentedKrem- Putin insisted “the country provides tax-exempt “pass-through” vehicles, lin-sanctionedcriticismforstruggling everything, everything the army whereultimatetaxispaidonhisper- tosupplythefrontlinesandretreating needs”,including“everythingasoldier sonalreturnssubmittedtotheInternal from the south-eastern regions of needstobemodern,comfortableand RevenueService. reliable”.Putinurgedthedefenceminis- Thereportnotedthemajorityofthe ‘[Thenucleartriad]isthe try to “listen to the criticism and Trumpvehiclesinsomeyearsreported respondtoit”. “either no gross income (ie only mainguaranteeofour While Russia in March made “dis- expenses)orgrossincomeandexpenses sovereigntyandbalance crediting the armed forces” a crime that were entirely offset, raising the punishablewithupto15yearsinprison, questionsofwhetherthesewerevalid ofpowerintheworld’ theKremlinhastacitlyapprovedcriti- tradeorbusinessactivities,orwhether cismofthemilitary.Lawmakers,state theseschedulescontainedcostsderived UkraineannexedbyMoscow,Putinsaid televisionpunditsandprominentblog- frompersonalactivitiesorhobbies”. Russiahad“nolimits”onfinancingthe gersembeddedonthefrontlineshave RichardNeal,Democraticchairofthe wareffort. attackedthearmyforsupply,logistical waysandmeanscommittee,hasjusti- Putin’scommentsarelikelytobethe andstrategicfailures. fiedhispursuitandreleaseofTrump’s mostimportantpreparedremarksthe Whiletalkingabouttheneedtomod- taxreturnsonthegroundsthattheIRS Russianpresidentmakesuntilthenew ernise the army, Putin said Russia failedtoperformamandatoryauditof year. “knows everything about Nato’s theformerpresident’staxreturnswhile The Kremlin confirmed yesterday resources and abilities and needs to hewasintheWhiteHouse. thatthepresidentwouldnotmakehis studyitthoroughlyanduseittoincrease “Forfouryears,thecommitteehas annual state of the union address, itsmilitarycapacity”. beenreviewinghowtheIRSenforcesthe despitebeingrequiredbytheconstitu- He vowed to maintain the combat federaltaxlawsagainst,andensures tiontodosowithinthecalendaryear. readiness of Russia’s nuclear triad, complianceby,apresident,”hesaid.“A Civilianofficials,suchasViacheslav whichcanfiremissilesfromland-based presidentisnoordinarytaxpayer.They Volodin,chairofthelowerhouseofpar- launchers, submarines and strategic holdpowerandinfluenceunlikeany liament,aswellastheRussianOrtho- aircraft.“Thisisthemainguaranteeof otherAmerican.Andwithgreatpower doxChurch’sPatriarchKirill,attended oursovereigntyandbalanceofpowerin comesevengreaterresponsibility.” yesterday’sspeech—ahighlyunusual theworld,”addedPutin. Republicanshaveattackedthepubli- stepintendedtomarkitssignificance. SpeakingafterPutin,Russiadefence cationofthetaxreturnsaspolitically Putinplayeddownthewar’simpact minister Sergei Shoigu said Russia’s motivated.“Iamdeeplyconcernedby onRussia’seconomy,whichissettocon- nuclear force had successfully con- recenterosionsoftaxpayerconfidenti- tract3.5percent,afarshallowerfall ductedaspecialexerciseoncarryingout ality and the dangerous precedent thanexpectedwhenwesternsanctions alarge-scalenuclearstrike“inresponse today’sreleasesets,”MikeCrapo,the wereintroduced. totheuseofweaponsofmassdestruc- seniorRepublicanontheSenatefinance HesaidRussiawouldnot“militarise” tionbytheenemy”. Chainofcommand:VladimirPutinanddefenceministerSergeiShoiguinMoscowyesterday committee,saidyesterday. —MikhailKlimentyev/Sputnik/Kremlin/AP Lobbying rules Brussels to question former commissioner over Qatar scandal MAKE A WISE ANDYBOUNDS—BRUSSELS Mamersaidithadcarriedout“internal Themeetingswerefirstreportedby tion.“Asthecommissionconfirmed,all INVESTMENT ELENIVARVITSIOTI—ATHENS checks”aboutthemeetings.Thenine theEUobserverwebsite.InJuly,Avram- mymeetingswerecourtesymeetings: JOSEPHCOTTERILL—JOHANNESBURG encounters between November 15-17 opoloulostweetedaphotoonholidayin public,registeredandweneverreferred Subscribetodayat BrusselsistoaskaformerEuropean 2021wereforwhathetermed“short GreecewithbudgetcommissionerJoha- toFightImpunity,”hesaid.“Theyare ft.com/subscribetoday commissionertoexplainhispaidrole courtesymeetings”.“Innoneofthese nnesHahnandinOctoberonewithVěra mygoodfriendsandcolleaguesfrom forthecampaigngroupatthecentreof meetingsfromwhatweunderstandwas Jourová,transparencycommissioner. mytenureascommissioner.” acorruptionscandalafteritemerged herepresentingtheNGO...norwere TheothermeetingswereinBrussels Avramopouloshasalsoshedlighton he had held multiple meetings with anysuchissuesdiscussed.” withcommissionvice-presidentsFrans thefundingofFightImpunity.Inhislet- FINANCIALTIMES 28821,Coslada,Madrid.LegalDepositNumber seniorservingEUofficials. Healsomettwocommissioners in Timmermans, Margrethe Vestager, terseekingpermissionhesaiditrecei- BrackenHouse,1FridayStreet,LondonEC4M9BT. (DepositoLegal)M-32596-1995; PublishingDirector,RoulaKhalaf; 2022in“shortprivateencounters”. MarošŠefčovič,VěraJourová,Margari- vedmoneyfromtheSekunjaloDevelop- Subscriptions&Customerservice PublishingCompany,TheFinancialTimesLimited, Dimitris Avramopoulos left office on Evenso,“thecommissioniswriting tis Schinas and commissioners Stella mentFoundation,aSouthAfricanchar- Subscriptionoffers:www.ft.com/subscription registeredofficeasabove.LocalRepresentativeoffice; Contact:+442077756000,[email protected] C/InfantaMariaTeresa4,bajo2,28016,Madrid.ISSN November 30, 2019 and accepted a to...Avramopoulostoobtainfurther Kyriakides,MariyaGabriel,YlvaJohan- itypartoftheSekunjalogroup,which Manageyourpersonalaccount:mma.ft.com 1135-8262. €60,000feetoworkforFightImpunity, informationintohowherespectedthe ssonandHahn. ownsmedia,fishing,investmentand Advertising UAE:MasarPrinting&Publishing,P.O.Box485100, Tel:+442078734000,[email protected] Dubai.EditorinChief:RoulaKhalaf. a non-governmental organisation, in conditionssetoutinhispostmandate Avramopoulossaidhehadwrittento otherbusinesses.Thecharityyesterday Letterstotheeditor France:PublishingDirector,JonathanSlade,46RueLa February2021. activityandprovidefurtherinforma- Brusselsyesterdayclarifyinghisposi- saidfounderIqbalSurvéwasapproach- [email protected] Boetie,75008Paris,Tel.+33(0)153768256;Fax:+33(01) Executiveappointments 53768253;CommissionParitaireN°0919C85347;ISSN FightImpunityfounderPierAntonio tiononhowherepresentedthisNGO.” edbyarepresentativeofFightImpunity Tel:+442078734909 1148-2753. www.exec-appointments.com Turkey:DunyaSuperVebOfsetA.S.100.YilMahallesi Panzeriwasthismonthchargedwith Anyonebreachingthecodeofcon- attheWorldEconomicForuminDavos. 34204,Bagcilar-Istanbul,Tel.+902124402424. corruptionandmoneylaunderinginan ductcouldbereprimandedand,inext- “AsumofR4.5mn[€250,000]was Sweden:ResponsiblePublisher-ChristerNorlander Publishedby:TheFinancialTimesLimited, investigationintoallegedinfluencebuy- remecircumstances,takentotheEuro- donatedtoFightImpunitybetweenJuly BTeral:c+k4e4nH20ou7s8e7,313F0ri0d0a;yFSatxr:e+e4t,4L2o0nd7o4n07EC5470M09.BT. ©ReCporopdyuricgthiotnTohfetFhienaconncitaelnTtsimoefsth2i0s2n2e.wspaperinany ingbyQatar.Brusselssaidyesterdayit peanCourtofJustice,Brusselsadded. toSeptemberof2020,”thestatement Editor:RoulaKhalaf. mannerisnotpermittedwithoutthepublisher’sprior wouldwritetotheformerhomeaffairs In September 2020, Avramopoulos added, saying it had never received consent.‘FinancialTimes’and‘FT’areregisteredtrade Germany:DemirörenMedia,HurriyetAS-Branch marksofTheFinancialTimesLimited. and migration commissioner about asked Brussels for permission before moneyfrom“anyQatariorganisations”. Germany,AnderBrucke20-22,64546Morfelden- whetherheobeyedlobbyingrules. joiningtheFightImpunityboard,ashis ProsecutorsinBrusselshavecharged Walldorf,+496105327100.ResponsibleEditor,Roula TheFinancialTimesanditsjournalismaresubjecttoa Khalaf.Responsibleforadvertisingcontent,JonSlade. self-regulationregimeundertheFTEditorialCodeof Avramopouloshadatleastninemeet- coolingoffperiodhadnotexpired.Five fourpeoplewithcorruptionincluding Italy:MonzaStampaS.r.l.,ViaMichelangeloBuonarroti, Practice:www.ft.com/editorialcode ingswithcommissionersin2021and months later Brussels approved the Greek MEP Eva Kaili and recovered 153,Monza,20900,Milan.Tel.+3903928288201 Owner,TheFinancialTimesLimited;Rappresentantee ReprintsareavailableofanyFTarticlewithyour two in 2022. Former staff have to move.TheboardincludedBernardCaz- €1.5mnincash,partofwhichprosecu- DViiareGtt.oPrueeRcehsepr,o2ns2a0b0il3e7inPaItdaeliran:oI.MD.uDg.Snraln-Moa(MrcoI),PItraolvya.si- c(mominpimanuymloogrdoeorr1c0o0ntcaocptiedse)t.ailsinsertedifrequired observeatwo-year“coolingoff”period eneuve,formerpremierofFrance,for- torsbelievewerebribestolegislatorsto Milanon.296del08/05/08-PosteItalianeSpA-Sped.in One-offcopyrightlicencesforreproductionofFTarticles duringwhichtheycannotlobbyBrus- merEUchiefdiplomatFedericaMogh- influencepolicyonQatarandMorocco. Abb.Post.DL.353/2003(conv.L.27/02/2004-n.46)art.1 arealsoavailable. .comma1,DCBMilano. Forbothservicesphone+442078734816,oremail selsonissuesrelatedtotheiroldrole. eriniandMEPIsabelSantos.Theyhave DimitrisAvramopoulos:haswritten Kailiwillappearincourttoday. Spain:BermontImpresion,AvenidadeAlemania12,CTC, [email protected] Chief commission spokesman Eric lefttheboardanddenywrongdoing. toBrusselstoclarifyhisposition SheandPanzeridenythecharges. Thursday22December2022 ★ FINANCIAL TIMES 3 INTERNATIONAL Europe’s energy ‘Every generation crisis burdens hasits obstacles. Howwe companies with respond defines whoweare’ difficult choices Henrik Follmann Sustained high gas prices have become an existential threat to key industries VALENTINAROMEI ThegalleryproducedapieceforVera Underpressure: ANDPATRICIANILSSON Molnár,aHungarianartist,whichwas glassmaker Thepainofhighgaspriceshasbecome exhibitedattheVeniceBiennale.More AndreaGiubelli ubiquitousacrossEuropethisyear.But collaborationswithherareplannedfor attheNew forsomecompaniestheaddedcostsare showsinParisandNewYork.“Thecrisis MuranoGallery, morethanamanagementheadacheand hasbeenagreatlessoninthisrespect,” Italy.Below, acrusherofprofitmargins.Theyarean saidPerotta,withthecompanyforcedto German existentialthreat. rethinkitsbusinessmodel. company At the continent’s energy-intensive Putting more than half of New Follmann manufacturers, temperature control MuranoGlass’s11furnacesoutofaction Chemie,which involvesnotloweringtheofficethermo- hashadanimpactonitsteamofmaster fearslosing statbutburningnaturalgastogenerate glassmakers.Butitviewedthatasabet- business theheatthatisanon-negotiablepartof teralternativetoleavingitshighlyspe- LindaScuizzato/FT; theirproductionlines.Forthem,the cialisedworkers,whopractisecentu- DanielPilar/FT energycrisishasmeantshutdowns,fir- ries-old techniques, without employ- ing workers or even filing for bank- ment.“Theyarelikepianists.Ifthey ruptcy.Buttheworstmaynotbeover. don’tplayformonths,itwilltaketime Glassmakershavecraftedincandes- forthemtogetbacktoit.” centvases,chandeliersandothertrin- Despiteallthecost-savingmeasures, ketsonthetinyItalianislandofMurano, thebusinesswasonly“justsurviving”, nexttoVenice,foreightcenturies.The saidPerotta.“Wearelivingdaybyday. sectorisnowfacingamake-or-break Wehavenocertainty.” moment:findingthemeanstofundthe FollmannChemie’ssprawlingplantin soaringpriceofthegasusedtokeepthe thetownofMinden,NorthRhine-West- furnacesburningatmorethan1,000C phalia, features reactors that churn aroundtheclock. chemicalsintovariousproducts,stateof Running a furnace cost €7,000 a theartpackingterminalswherework- monthbeforeRussia’sfull-scaleinva- ersblastoutheavymetal,andonenew sionofUkrainethisyearsparkedasurge addition—anoiltank.Thetankwas ingasprices.Itnowcostsupto€110,000 bought to prepare for possible gas —asituationthatis“impossibletoman- rationingthiswinter.Itwould,saidFoll- age”,saidAndreaPerotta,co-founderof mann,“lastustwodays”.Ifthecom- NewMuranoGallery. panyhadnogasforlonger,“thenwe “Thisisdefinitelytheworstcrisisour havemuchbiggerproblems”. business has faced,” said Francesco Thebusinesshasstoppedproducing Scarpa,hisco-founder.Harkingbackto at weekends and, aside from the oil 1966,whenthepremisesofhisfather— tank,Follmannhasreplacedtwogas alsoaglassmaker—wereflooded,send- engineswithonesthatcanrunonoil. ing the business into bankruptcy, he Theenginescostthecompanyabout €400,000.Staffremainonfullsalaries ‘Germanycouldhave despitethereducedworkinghours. “Energycostsusedtobe2percentof manageditmuchbetter ourturnover—nowitis6percent,andI —werisklosingbigparts havenoideawhatitwillbenextyear,” Follmann said. Follmann Chemie, ofourindustry’ which makes just over €260mn in annual revenue, has spent nearly added:“Backthenweboughtnewfur- €10mnmoreonenergythisyearcom- nacesandwewerebackin10days.Now paredwithbeforethewarinUkraine. thereisnoendinsight.” “Ifthepriceofgaswillreturnto12to HenrikFollmannisthethirdgenera- 16centsperkilowatthour,itwillbe tionofhisfamilytorunchemicalscom- toughbutwewillsurvive,”hesaid.If panyFollmannChemie,anenterprise pricesweretogobackupto40or50 that epitomises the German Mittel- cents—astheywereearlierthisyear— stand. These small, often family-run “thenno,wewon’tsurvive”. businesses form the foundation of While Perotta insists New Murano Europe’s largest economy. Follmann Galleryis“verygrateful”forgovern- saidthebusinesssurvivedtheenergy mentsubsidies,hesaidmoreradical crisisofthe1970s,whichwassosevere solutions were needed for long-term thegovernmentbannedSundaydriv- survival. That included glassmakers ing.“Everygenerationhasitsobstacles. weaningthemselvesoffgas. Howweresponddefineswhoweare.” Referringtothetriggerbehindthe ButheworriesaboutthefateofGer- soaringpriceofthefuel—Russianpresi- many’schemicalindustry,whicheats dentVladimirPutin’sdecisiontoinvade upaboutathirdofthegasconsumedby Ukraine—Perrottasaid:“Oursurvival thecountry’smanufacturingbase. can’tbeatthemercyofoneortwopeo- Thepandemicwashardenough,with pleintheworldwhoinonemomentcan “tremendous” price increases in raw changeourfate.” materials, which Follmann largely “Wewantrenewableenergy;wewant passedontocustomers.Thequestion solarpanels;wewanttobeabletopro- now,hesaid,washowmuchcustomers duce with much lower costs,” added oftheGermanchemicalindustrywould Scarpa.Yetpanelsarebannedonthe bewillingtoshoulderforhigherenergy island,underregulationaimedatpre- costs before they started looking for servingthehistoricallandscape.“We newsuppliersinAsiaorNorthAmerica. don’twantthismillenariantraditionto New Murano Gallery is surviving die,”saidPerotta. because of government help — since The crisis has left Follmann frus- October,Italy’sbusinesseshavebeen trated:“Germanycouldhavemanaged abletoaccesstaxcreditsforupto40per itmuchbetter—werisklosingbigparts centoftheirenergybills.Thegalleryhas of our industry. When it’s gone, it’s alsobeenforcedtomakedrasticdeci- gone.”Helamentsthedecisiontoaban- sionsaboutthedesignofitsproducts. donnuclearpowerandthefailureto “Ifweproduceacollectionwitheight buildliquidgasterminalsuntilnowwas colours,wewillhavetohaveeightfur- “soarrogant”.Thecrisiswas,hesaid,an naceson,”saidPerotta,aseachoven accidentwaitingtohappen. producesonecolour.“Wedecidedto Berlin has promised to deploy a reduce the use of the ovens, which €200bn“protectiveshield”overitsciti- meansthatweareworkingwithoneor zensandkeyindustries,includingasub- twocolours.” sidyofindustrialgaspricesfromearly It also switched to higher-margin 2023.Butdetailswereonlyannounced works. “Instead of producing 300 inmid-December.Follmannsaidithad glasses,weproducedthreeglasssculp- takentoolongforthegovernmentto tures,”saidScarpa. Thepriceofone providecertainty.“Customersareask- glassstartsat€50,whileacentrepiece ing:‘Whatwillpricesbenextyear?’And sculpturecouldbe€700to€2,000. Ican’tanswerthem.” 4 ★ FINANCIAL TIMES Thursday22December2022 INTERNATIONAL Budget woes Pandemic China’s fiscal deficit reaches record high Beijing alters definition of virus deaths Zero-Coviddrive,taxcuts morethandoubletheRmb3.7tnduring ofgovernmentincome,wasoneofthe thisyearafterBeijingcutVATratesand As government financial woes andpropertymeltdown thesameperiodoflastyear. main reasons for the higher deficit. offeredrebatestorevivegrowth. deepen,authoritiesarecomingunder amid doubts The rise in the government deficit China’s local authorities made Revenuefromtaxesoncarpurchases pressuretocutbackonexpenditure. taketollonfinances highlightstheeconomicdamagefrom Rmb5.1bnfromsellinglandinthefirst fellbyalmostathirdduringthesame ZhongZhengsheng,chiefeconomist over numbers Xi’ssignatureCovid-19eliminationpol- 11monthsofthisyear,downalmosta periodasBeijingcuttaxratestoboost atPingAnSecuritiesinBeijing,said icy—whichentailedrelentlesscontact quarterfromayearbefore. bigticketconsumeritems. China’sfiscaloutlaywouldfall12per SUNYU—SHANGHAI tracing,testingandlockdownstoroot Thedeclinecameasdebt-ladendevel- Thegovernment’sfiscaloutlay,mean- centinDecemberaftermanymonthsof AbroadmeasureofChina’sbudgetdefi- outcoronavirus—aswellasacrack- opers,ledbytheprivatesector,stopped while,ledbyhealthcareandsocialwel- increases. cit hit a record high in the first 11 downonhousingspeculation. growingtheirlandbanksafterregula- farespendingcontinuedtogrowasBei- “Since the deficit target stays WILLIAMLANGLEY—HONGKONG monthsofthisyearasapropertymelt- Beijingabruptlyabandonedthezero- torstightenedtheiraccesstocreditand jingstruggledtocurbthepandemicand unchanged, the authorities have to Beijinghassharplynarroweditsdefini- downandPresidentXiJinping’szero- Covidpolicythismonthaftergrowing homesalessank. provideasafetynetforafast-growing reducespendingtooffsetthedropin tionofaCovid-19death,astheofficial Covid policy weighed on the world’s casenumbers,aslowingeconomyand Taxcuts,acriticalpartofBeijing’s populationofjoblessadults. revenue,”Zhongsaid. toll from one of China’s worst out- second-largesteconomy. mountingpopularresistance.“Thisis effortstostimulatethesluggishecon- MinistryofFinancedatashowedgov- Zhong added that public finances breaks since the pandemic began Totalfiscalspendingbyalllevelsof theworst[inrecentyears]forChina’s omy,havedealtafurtherblowtofiscal ernmenthealthcarespendingsurgedby might improve next year as China divergesfromanecdotalevidence,the government exceeded revenue by publicfinances,”saidLarryHu,aHong income.OfficialdatashowChina’svalue 15percentinthefirst11monthsofthis exitedzero-Covidandrelaxedcontrol experienceinotherjurisdictionsand Rmb7.8tn ($1.1tn) from January Kong-based economist at Macquarie addedtaxcollection,oneofthebiggest yearastheauthorityinvestedheavilyin overtheprivatesector,whichhasbeen analysts’modelling. through November, according to the Group. sourcesofbudgetaryincome,fellmore PCRtestingandcentralisedquarantine batteredbyregulatorycampaignsover Ministry of Finance. The figure was Asharpfallinlandsales,abigsource thanaquarterinthefirst11monthsof facilitiestoeradicatethepandemic. issuessuchasdatasecurity. TheNationalHealthCommissioncon- firmedthechangethisweekinresponse to questions about the low official counts compared with reports of Medicines. Health woes funeralhomesworkingovertime.This week, financial news outlet Caixin Infections growth stokes global lack of antibiotics reportedthatChinahadadjustedhowit classifiedCoviddeaths. WangGuiqiang,adoctorspeakingat anNHCpressconference,saidpeople whowereconsideredtohavediedof otherconditionswhilepositiveforthe viruswouldnotbecountedintheoffi- Supplypressuresandrules UKextendslistofmedicinesthatcannotbe cialCoviddeathtoll.WangsaidtheNHC makeithardforcompaniesto exportedorhoarded wouldonlycountthosewhohaddiedof Number respiratoryfailureorpneumoniaafter scaleupandeaseshortages testingpositiveforthevirus. 70 Chinahasembarkedonastunning 60 retreatfromitszero-Covidplaybookin DONATOPAOLOMANCINI 50 recentweeks,liftinglockdowns,slash- ANDHANNAHKUCHLER—LONDON 40 ing testing and quarantine require- A surge in bacterial infections after 30 mentsandretiringcontact-tracingsys- countriesliftedtheirpandemicrestric- temsafternearlythreeyearsofstrict 20 tionshasledtoshortagesofantibiotic protocols. 10 drugssuchaspenicillinandamoxicillin, Chongqing,amegacityofmorethan highlightingtheprecariousstateofglo- 0 30mn residents in the south-west, balsupplychains. 2019 21 22 thisweeksaidCovidpatientswithmild Ofthe35countrieswhosedataarecol- ornosymptomscouldgotowork“as Riseindrugpricessuggestsmoreshortages lectedbytheWorldHealthOrganiza- normal”. tion,80percenthadanacuteshortage Numberofmedicineswhoseprocurementcostshaverisen Experts have questioned China’s of penicillin-related antibiotics, said forUKgovernment deathtollsinceitabruptlydismantled LisaHedman,WHOgroupleadforsup- itszero-Covidcontrolsearlythismonth. 160 plyandaccesstomedicines.TheUK Ithasrisenbysevensincethen,though 140 introduced“seriousshortageprotocols” theNHCrevisedthatnumberdownby lastweekallowingpharmaciststopre- 120 one yesterday. That compares with scribealternativeformulationsofanti- 100 HongKong,acityofmorethan7mn, bioticsafterariseofinfectionssuchas wherethedailydeathtollisinthedou- 80 GroupAstreptococcus. bledigits.Itreported39deathsonMon- 60 Duringthepandemic,lowerdemand dayand33onTuesday. forantibioticsandseverestrainonsup- 40 China’schangetothedeathclassifica- plychainsleddrugmakerstolowerpro- 20 tionfollowsamovethismonthtostop duction.Butasmanycountriesexperi- counting asymptomatic infections, 2020 21 22 encetheirfirstwinterwithnocurbsin whichpreviouslymadeupthemajority twoyears,healthexpertssaidsupply Sources:MedicinesandHealthcareproductsRegulatoryAgency,December20; of cases. Case numbers have since pressuresandregulatoryrequirements UKhealthdepartmentpriceconcessionlists plungeddramatically,fromapeakof weremakingithardforcompaniesto nearly40,000dailycaseslastmonthto scaleupandeasetheshortages.They Shortfall:a SomeUSandEuropeanpharmacists ofawider“systemicchallenge”affect- ‘Youcan’t Asianrivalshadaccesstocheaperfuel about2,000mostdaysthisweek. hadalsooccurredas“countriesdidn’t dearthofdrugs havealsoreportedshortagesofcom- ingthewholesupplychain.Mostofthe fortheprocess.Costshadalsosoaredfor LeoPoon,headofthedivisionofpub- justthrowa anticipate that respiratory infections wascommonat monpainreliefdrugsasawaveofflu, world’spharmaceuticalingredientsnow otheressentialingredientssuchassugar lichealthlaboratorysciencesattheUni- weregoingtohitus[sohard]inthefirst Covid’speak, respiratorysyncytialvirusandCovid-19 camefromIndiaandChinaratherthan fewextra forfermentation. versityofHongKong,saidaccuratefig- yearwithoutmasks”,Hedmansaid. highlighting cases fuels demand. Ilaria Passarani, Europe,hesaid,andtherewas little “Youcan’tjustthrowafewextracakes ureswere“essential”forChinatotailor cakesinto pressureon secretary-generalofthePharmaceutical transparencyonthesematerialsaspro- intotheoven,”warnedHedman.“When itsresponse,sayingthecountry’sprevi- Wherehaveshortagesbeenfound? supplychains. Group of the European Union, said ductionprocessesgloballywereviewed theoven. youmakeanantibioticyouhavetoshut ouslylowlevelsofinfectionleftmuchof Shortagesofamoxicillinhavebeenrep- TheUkrainewar drugsforinfectionssuchastuberculosis asproprietaryinformationonlyvisible downandrevalidateyourequipment thepopulation“naive”tothevirus. [Shortages] ortedintheUSandCanadawhileinthe hasfurther andskininfectionshadalsobeenhit. toregulators.That“makesitdifficultto beforeyoumakeanother ...[short- “Ithinkweneedtohavethisnumber EU,25outof27membershavereported disruptedthe performatrueriskassessmenttodeter- cantake ages]cantakemonthstocorrect.” totrytoreallocateourresources...to What’scausingtheshortfall? scarcesuppliesofsomeantibioticsto supplyof mineareasofgreatestvulnerability”. Passarani said solutions included therightregionsorrightcitiestotryto monthsto theEuropeanMedicinesAgency. antibiotic Shortagesofdrugs,fromcancermedi- Theantibioticsupplychaincantake forcingdrugmakersseekingEuropean minimisetheimpactofthevirus,”he Theimpactinpoorerorsmallercoun- ingredients cinestoanaesthetics,werecommonat betweenfourandsixmonthsfrompro- correct’ authorisationtomarkettheirdrugsin said.“Likedowehaveenoughclini- triesislesswellknown,butHedman FTmontage: thepeakofCovid-19,highlightingpres- ductiontodistribution.ButRajivShah, allmemberstates.Jasovskýsaidpooling cians,dowehaveenoughhealthcare saidtheycouldbedisproportionately GettyImages/Dreamstime sureonsupplychains.TheUkrainewar executivedirectorofUK-basedwhole- mechanismsbetweencountries,comp- support?” affected,especiallyiftheircurrencies hasfurtherdisruptedthesupplyofanti- salerSigmaPharmaceuticals,saidextra aniesandorganisationsshouldbeintro- Severalmodels,includingonepartly had depreciated and they needed to bioticingredients,whilerisingenergy regulatorychecksmeantittooklonger ducedandmoredonetodiversifyman- fundedbytheChineseCenterforDis- procuredrugsontheopenmarket. costshavereducedfactorymargins. fordrugmakerstoreopenlines. ufacturingcapacityandimprovetrans- easeControl,havepredictedthatChina Althoughthevolumesmaybesmall AdrianvandenHoven,director-gen- parency,datasharingandforecasting. couldsufferasmanyas1mndeathsdur- Cantheshortagesbefixed? comparedwithuseindevelopedcoun- eralofgenericdrugmakersassociation ingitsreopeningphaseifBeijingcontin- Isincreasedresistancearisk? tries,theyarefarfrominconsequential. MedicinesforEurope,saidthatafter Sandoz,oneofthelargestgenericantibi- uestodismantlecurbs. Dušan Jasovský, a pharmacist at aid lockdownsitwouldhavebeenhardfor oticsmakers,saidithadincreasedout- Doctors often prescribe “narrow-act- ThedefinitionofaCoviddeathvaries groupMédecinsSansFrontières,said antibioticsmakerstoaccuratelypredict putofdrugsbyadouble-digitpercent- ing”antibioticstoaverttheemergence indifferentcountries.TheUKcompiles about5.7mndiedannuallyfromalack thespikeindemandfortreatmentssuch agein2022,hiring140peoplesinceSep- ofsuperbugsthatresisttreatment.But onetallyoffatalitiesthatmentionCovid of access to antimicrobials, which asliquidantibioticsolutionsforchil- tember.Nextyearitplanstodothe theshortageofsomeantibioticsmeans asacauseofdeathondeathcertificates include antibiotics, antifungals and dren.“Youcanpredictahigherinfec- same,openingafactoryinAustria. prescribers are being allowed to dis- andaseparatecountofthosewhodie antivirals.Thefearofpushingprices tiousseason,butyoucannotpredictthe ButtheNovartis-ownedcompanyis penseotherantibioticswithabroader within28daysoftestingpositive. higher acted as a “disincentive” to veryhighrateinchildren,”hesaid. beingsqueezedbyrisingcosts,which range,usuallyreservedforinfections TheUScountsanymortalitywhere reportshortagesandnotifytheWHO, MSF’sJasovskýsaiddepletedstocks arehardertopassoninEuropeanmar- notcuredbyfirst-lineantibiotics. coronavirusisrecordedtohavecontrib- addedHedman. ofantibioticswere“minorsymptoms” ketsthatcapdrugsprices.Itsaidits AdditionalreportingbyJamieSmyth utedtothecauseofdeath. Covid cases Gulf tension WHO urges China to step up vaccinations Iran holds ‘friendly talks’ with Saudi Arabia DONATOPAOLOMANCINI—LONDON yesterdayreiteratingacallfortheraw withothercountriesthathaveexperi- ANDREWENGLAND—LONDON “Thatattacklikelydidnotoccur thelasttalkstakingplaceinApril. dataonthevirus’soriginstobemade encedmassivesurgesincaseloads. becauseoftheclosesecurityco-opera- Amirabdollahian wrote on social TheWorldHealthOrganizationsaidit Iran’sforeignministersaidyesterday available. RyansaidBeijing“lagsbehind”inits tion between Saudi Arabia and the mediathattheSaudiforeignminister was“veryconcerned”aboutarisein hehadheldtalkswithhisSaudicoun- Chinaisstrugglingtocopewithan vaccinationrates,especiallyforelderly UnitedStates,”BrettMcGurk,theWhite “assuredmeofhiscountry’sreadiness severe Covid-19 cases in China as it terpartinasignthatTehranisseeking “exitwave”ofinfectionssparkedbythe age groups, who are most at risk of House’s co-ordinator for the Middle tocontinuethedialoguewithIran”. calledonBeijingtostepupvaccina- to ease tensions with its rival as it liftingofrestrictions. severediseasebutwhohaveremained East,saidlastmonth. Riyadh and Tehran severed diplo- tions,especiallyforvulnerablegroups. cracksdownonmonthsofprotestsin “What’sbeingreportedisrelatively stubbornly out of reach of health The Iranian protests erupted after matictiesin2016afterthekingdom’s theIslamicrepublic. ManycitiesinChinaaregrapplingwith lownumbersofcasesinhospitalsand authorities in the past few months. Mahsa Amini, a 22 year-old woman, embassyinIranwasransackedduring therapidspreadofcoronavirusfollow- ICUsbut,anecdotally,therearereports China’sratesofuptakeforboostershots HosseinAmir-Abdollahiansaidhehad proteststriggeredbytheexecutionofa ingtheliftingofmostCovid-19restric- thatthoseICUsarefillingup,”saidMike arealsorelativelylow. “friendlytalks”withPrinceFaisalbin TheSaudiforeignminister seniorShiaclericinSaudiArabia. tionsafterChinaaggressivelypursueda Ryan,headoftheWHO’semergencies However,hesaidChinahadmadesig- Farhanatthisweek’sregionalgathering Hostilitiesbetweenthetwoincreased ‘assuredmeofhiscountry’s zero-Covidpolicyformorethantwo programme. “They’re behind the nificantprogressinbuildingupitsinoc- inJordan,inwhatisbelievedtobethe afterRiyadhsupportedformerUSpres- years. curve,”headded,suggestingthedis- ulationprogrammedespitetheprotec- firstmeetingbetweenIranianandSaudi readinesstocontinuethe identDonaldTrump’s“maximumpres- Speakingattheorganisation’send-of- crepancyinnumbersmightbedownto tionitaffordsbeing“notadequate”fora foreignministerssince2017. sure”campaignagainstIran. dialoguewithIran’ yearpressconferenceyesterday,Tedros adelayinreporting,ashasbeenseen countryitssize. Theconferencewasattendedbyoffi- InSeptember2019,USandSaudioffi- AdhanomGhebreyesus,WHOdirector- “The question remains whether or cialsfromacrosstheregionaswellas cialsblamedTehranforamissileand general,saidtheagencywantedmore notenoughvaccinationcanbedonein FrenchpresidentEmmanuelMacron. diedunderthecustodyofIran’smoral- droneattackonthekingdom’soilinfra- datatobemadeavailableondisease thecomingweek,twoweeks,thatwill The Saudi foreign ministry did not itypoliceinTehranafterbeingaccused structure,whichtemporarilyknocked severity,hospitaladmissionsandoccu- actuallyblunttheimpactoftheOmi- respondtoarequestforcomment. ofnotwearingherhijabproperly. outhalfitscrudeoutput. pancyratesatintensivecareunitsin cronwave,”headded. Tensions between the mainly Shia Theunrestsweptacrosstherepublic Movestocooltensionsbetweenthe China. Ryan also said the WHO “would republicandtheSunnikingdomhave withcallsforregimechange.Officialfig- rivalsbeganlastyearafterIraqhosted Criticshaveaccusedthebodyofbeing encourage” China to import foreign increasedinrecentmonthsasTehran uresputthenumberofdeaths,includ- secrettalksbetweenSaudiandIranian toosoftonChina,suggestingBeijingdid mRNAvaccinessuchastheshotsmade hasaccusedSaudiArabiaandotherfor- ingsecuritypersonnel,atabout200. officials.Butofficialshaverepeatedly notactfastenoughtowarnaboutcoro- byModernaandBioNTech,whichhave eignpowersofstokingtheworstout- ButhumanrightsgroupAmnestyInter- cautionedthatprogresswasslow,with navirus,whichemergedfromthecen- beenshowninstudiestobemoreeffec- breakofunrestinIraninyears. nationalsaysmorethan300protesters SaudiArabiafrustratedthatIranwas tralcityofWuhaninlate2019. tiveagainstCovid-19. Last month, western officials said havebeenkilled,including44children. notwillingtodomoretouseitsinflu- TheWHOhadpreviouslychastised China has not approved them for WashingtonandRiyadhsuspectedthat Beforetheprotestserupted,Iranand enceoverHouthirebelsinYemento Chinaforalackoftransparencyondata TedrosAdhanomGhebreyesus: domestic use, though it has allowed Iranhadbeenpreparinganimminent SaudiArabiahadheldatleastfivesetsof help end that country’s more than relatingtotheoutbreak,withTedros wantsmoredatafromChina theiruseforforeignresidents. attackagainstSaudiArabia. talkstotrytode-escalatetensions,with seven-yearcivilwar. Thursday22December2022 ★ FINANCIAL TIMES 5 Rate rise fears Japanese bonds sustain fresh blow in wake of central bank’s change to core tenet of monetary policy y PAGE 8 Musk claims EU sets tough Just did it Nike’s improved sales forecast lifts conditions on sportswear peers after rush for discount stock Twitter risked Berlin bailout for Uniper negative cash GUYCHAZAN—BERLIN flow of $3bn TheEuropeanCommissionapproved theGermangovernment’sbailoutof stricken gas importer Uniper, but imposed onerous conditions that includeforcingittoselloneofGer- many’smostmodernpowerplants. UniperwillhavetodivesttheDatteln4 3 Chief defends his cost-cutting effort coal-fired power station in the Ruhr industrialregion,whichcameonline 3 Financial snapshot of platform given onlyin2020andisconsideredoneof themostadvancedfacilitiesofitskind. Itwillalsohavetosellagas-firedpower plantintheHungariancityofGönyű. HANNAHMURPHY—LONDON Hisremarkssuggestedthecompany Thecommission’sdecisionopensthe wasontracktomakeabout$3bnin wayfortheGermangovernmenttobuy ElonMuskhasdefendedhisfinancial annualrevenuesnextyear.Thatwould 99percentofthecompany’sshares. stewardshipofTwitter,arguingthatthe suggestTwitterwasoncourseforreve- Some70percentwillbeacquiredfrom platformwouldhavefaceda“negative nuesasmuchas$2bnlowerin2023 its previous majority owner, Finnish cashflowsituationof$3bnayear”were thanthe$5bnitachievedin2021— state-ownedenergygroupFortum,and itnotforhiscost-cuttingefforts. whichcamemainlyfromadvertising. therestfromsmallershareholders. The entrepreneur, who bought the Manymarketershavepulledoutofthe Fortum said yesterday it had con- socialnetwork for$44bninOctober platformsinceMusk’stakeoverbecause cludedthesaleofitsUniperstaketothe afterpreviouslyattemptingtopullout ofmoderationconcerns. German state. But under the deal ofthedeal,gaveasnapshotofitsdire The picture of Twitter’s finances approvedbyBrussels,Berlinwillalso financesduringaTwitterSpacesonline comesafterMuskfiredabouthalfofits havetoreduceitsstakeinUnipertolit- forumyesterday. 7,500-strong workforce and stripped tlemorethan25percentby2028. Hesaid:“Wehaveanemergencyfire employees’ benefits, prompting con- Harald Seegatz, head of Uniper’s drillonourhands...Thiscompanyis cernsaboutwhetherthecompanyis workscouncilanddeputyboardchairof likeyou’reinaplanethatisheaded sufficientlystaffedinareassuchascon- the supervisory board, described the towards the ground at high speed tentmoderationandcompliance. commission’sdemandsas“hardcuts”. with the engines on fire and the OnSunday,Musksaidinatweetthat TheproposeddivestituresofDatteln4 controlsdon’twork.That’sthereason Twitterhadbeen“inthefastlaneto andofUniper’sdistrictheatingbusiness bankruptcysinceMay”.ButMusksaid were“particularlypainfulforthecol- ‘You’reinaplanethat yesterdaythatthechangeshehadmade leaguesaffectedinGermany,justafew would mean the company would Nikeresultsdemonstrateresilientconsumerdemand,accordingtoanalysts daysbeforeChristmas”. isheadedtowardsthe —JakubPorzycki/NurPhoto “roughly”hitcashflowbreak-even. UnipersaidtheconditionsfromBrus- groundathighspeed Hesaid:“Withthechangesweare ALISTAIRGRAYANDSARAHPROVAN inout-of-hourstradingandspurreda thecompanyhadresortedtohigher selswerepainfulbut“don’timpairthe makinghereonmassivelyreducingthe LONDON rallyinEuropeancompetitors.Puma discountstoselloffstock.However, company’sfuture”. withtheenginesonfire’ burnrate,andbuildingsubscriberreve- Nikehasgiventheglobalsporting andAdidasbothroseroughly6per sheaddedthatmuchoftheimprove- AsEurope’slargestbuyerofRussian nue,InowthinkthatTwitterwill,in goodssectoramuch-neededboost cent in Frankfurt, while JD Sports mentwas“veryspecifictoNike”. gas,Uniperwasoneofthemaincorpo- formyactionsthatmayseemsome- fact,beOKnextyear.” after consumers snapped up dis- jumped8percentinLondon. Likeothersportsretailers,Nikehas ratecasualtiesofRussia’sinvasionof timesspurious.” Hehadspokentoadvertisers,who countedfootwear,clothesandequip- “Nike’sresultsshowthatconsumer struggledtomanagestocklevelsdur- Ukraine.Itbegantolosetensofmillions He said the platform had been on wereurginghimtoshowhowTwitter mentaheadofChristmas,prompting demandremainsverystrongforthe ingthepandemicbecauseofsupply ofeurosadayafterGazpromdrastically coursetospendabout$5bnin2023. couldprovideareturnontheirinvest- ittoupgradesalesforecasts. brand,whichispositiveforthewider chain disruptions and fluctuating reducedsuppliestoGermanythrough CostsatTwitterin2021,thelastannual ment. athleisuremarketgivenitsscale,”said demand.Sharesinthecompanyhave theNordStream1pipelineinmid-June. perioditreportedbeforebeingtaken TheTeslaandSpaceXchiefexecutive Whilepromotionstoclearinventory KateCalvert,ananalystatInvestec. droppedalmost40percentthisyear. Tofulfilitscontracts,itwasforcedto private,were$5.6bn,duringwhichtime hasindicatedthatheplanstotransform hitmargins,investorswerereassured NorthAmericaperformedparticu- Analystsnotedthatstocklevels— buygasonthespotmarket,oftenat itmadeanetlossof$221mn. Twitterintoan“everythingapp”. bya17percentriseinrevenuesto larlystronglyforNike.Salesoffoot- valuedat$9.3bnasoftheendofthe muchhigherprices. Musk projected that Twitter’s net LateonTuesday,Musksaidhewould $13.3bninthethreemonthstotheend wearrose39percent,equipment26 quarter—remainedhigh,butchief Thecompanywastakenintopublic cashoutflow,“ifyoudidn’tmakeany resignasTwitter’schiefassoonashe ofNovember. percentandclothing14percent.The executive John Donahoe said the ownershipinSeptember,conditionalon changes”, would be about $6bn to foundsomeone“foolishenoughtotake Nikesaiditnowexpectedannual Europe,MiddleEastandAfricaregion “inventorypeakisbehindus”. approval from Brussels, and two $6.5bnnextyear. thejob”,bowingtotheresultofapollof revenuestoincreasebya“lowteens” wasnotasstrong,althoughrevenues Nikewasalsowellplacedtocapital- monthslaterreporteda€40bnlossfor Thiswaspartlybecausethecompany usersheheldattheweekend. percentageaftertheeffectsofcur- therestillrose11percent. iseonthepopularityofmorecasual thefirstninemonthsoftheyear. hadbeenloadedwith$12.5bnofdebtto Healsoindicatedthathewouldcon- rencyfluctuationswerestrippedout, Thedouble-digitgrowthhelpedoff- stylesinthewakeofthepandemic BrusselsannouncedlateonTuesday help fund his acquisition, which tinuetorunthegroup’s“softwareand an improvement from its previous set weak demand in China, where anditsbrandrecognition,whichsup- thatitwasapprovingthebailout,which requiredabout$1.5bnayearinannual serverteams”aftersteppingdown,sug- forecast of a “low double-digit” saleshavebeenhitbyCovid-19curbs. portedonlinesales,Salteradded. includesacashinjectionof€8bnand debt servicing payments amid rising gestinghewillremaincloselyinvolved increase,althoughitsaidthatforeign The figures suggested that cus- Dilutedearningsrose2percentto could reach up to €34.5bn in total, interestrates,hesaid.“Notgoodsince inoperations. exchangerateswouldbeaheadwind. tomerdemandwas“holdingupbetter 85centsashare.Thatbeatanaverage underEUstateaidrules,sayingtheaid Twitterhas$1bnincash,”hesaid.“So AdditionalreportingbyRichardWatersin Thebetterthanexpectedresults thanexpected”intheUS,saidEmily estimateof64centsinaRefinitivpoll. “doesnotexceedtheminimumneeded that’swhyIspentthelastfiveweekscut- SanFrancisco aftertheNewYorkclosingbellon Salter,ananalystatconsultancyGlo- Netincomewasflatat$1.3bn. toensuretheviabilityofUniper”. tingcostslikecrazy.” SeeFTViewandLex Tuesdaysentthesharesup13percent balData,eveniftheyalsoshowedthat SeeLex SeeLex Porsche a rare success during German stock market’s decline market long on historic corporate business models might have stymied INSIDE BUSINESS names,shorterondynamismandinno- thedevelopmentofmanyafreshidea. vation.Ofthe40blue-chipcompanies TakeGermany’sautomotiveindustry, EUROPE listed in the country’s leading Dax whichaccountsforafifthofalltheDax’s index,23cantracetheircorporateroots stockmarketvalue.Thesecompanies Olaf backtothe1800sorbefore.Onlytwo wereslowtoreacttotheshifttoelectric Dax companies — real estate group vehicles and lobbied against tighter Storbeck VonoviaandonlineretailerZalando— emissionrules.VW—and,allegedly, werefoundedthiscentury. Mercedes—evenriggedemissionsdata While the enlargement of the Dax astheystruggledtomeetregulations. W from30to40companiesinthewakeof AnotherproblemisGermany’stwo- theWirecardscandalsuggestsgreater tiercorporategovernancesystem—a henGermansportscar variety,theindexisstilldominatedbya management board that runs opera- makerPorschelistedon fewlargeindustrialconglomeratesand tionsandasupervisoryboardthatover- the Frankfurt Stock theirspin-offs:Siemens(fourcompa- seestheexecutives.Halfofsupervisory Exchange in a €75bn nies), Volkswagen/Porsche (three), boardmembersunderGermanlaware initialpublicofferingin Mercedes(two),Fresenius(two)and workers’representatives.Thiscanlead September,DeutscheBörsechiefexecu- Bayer(two). toamoreconsensus-drivenapproachto tiveTheoWeimerravedabouta“his- TheDax’shistoryofunderperforming decision making in areas that might toricday”.Weimerwasright—butina global equities markets started long affect employment. In many compa- differentsensethanhehadinmind. before the German industry lost its nies,thechairofthesupervisoryboard Europe’s largest listing by market access to cheap alsoisaformerchiefexecutive,who capitalisationwillgodownasararehur- Russian gas this Itisnothardtowonder might be loyal to existing corporate rah amid the decline of the German year.Overthepast strategiesratherthannewapproaches. whetheraninstinctive stockmarketinrecentyears.Lessthan fiveyears,theDax And,ingeneral,CEOswhounderper- amonthafterthePorscheIPO,largest has risen 6 per relianceondefendingold formcanresistshareholderpressureto DaxmemberbyvalueLindeannounced cent, while the quit or change strategy. Take Bayer, businessmodelsmight inOctoberthatitwoulddelistfromthe MSCIWorldindex whichwasabletoembarkonitsill-fated Frankfurtexchange.Lindewillinstead has gained 18 per havestymiedfreshideas $63bnacquisitionofMonsantoin2016 focusontheNewYorkStockExchange, centoverthesame despitefierceshareholderopposition, arguingthatitsGermanlistinghadbeen period.IntheUS,theS&P500indexis andwithoutputtingthedealtoavoteat adragonitsvaluation. up42percentinthattime.Anothertell- itsannualmeeting.In2019,Bayerchief Germany’s most striking corporate ingbenchmark:at€1.6tn,thecombined WernerBaumannkepthisjobdespite55 success story, Mainz-based biotech market cap of Germany’s 40 largest per cent of the shareholders voting groupBioNTech,didn’tevenbotherto listedcorporationsisafifthbelowthat againstratifyingtheactionsofmanage- listinFrankfurt.Theinventorofoneof ofApple,whichisvaluedat$2.1tn. ment.Heisstillthere,despitesharesin thetwoleadingCovidvaccineschose Therearemanyreasonsfortherela- thecompanyfalling43percentsince Nasdaqforits2019listing.Thedecision tivedecline.Oneisashortfallofinnova- the deal was announced. The €48bn washighlyrationalasUScompanies tion, despite Germany’s engineering marketvalueofBayerisstillfarless tradeonhighervaluationmultiples. and manufacturing strengths. In the thanwhatwaspaidforMonsanto. OneofGermany’sbighopesfromthe WorldIntellectualPropertyOrganiza- Alotmorethinkingneedstobedone technologysector—Wirecard—col- tion’s 2022 ranking on innovation, torectifytheGermanmarket’sdecline lapsedin2020inoneofEurope’sbiggest Europe’s largest economy is ranked but improving corporate governance postwar accounting frauds, with its eighth,behindcountriessuchasSwit- andshareholderrightswouldbeagood formerchiefexecutiveMarkusBraun zerland,Sweden,theUSandUK. placetostart. currentlyfacingtrialinMunich. Itisnothardtowonderwhetheran SuchblowshaveleftaGermanstock instinctive reliance on defending old [email protected] 6 ★ FINANCIAL TIMES Thursday22December2022 COMPANIES & MARKETS Automobiles Financials Tesla value drops back below Exxon Key witness in Wirecard trial denies deleting data before he BigOilreturnstofavour GlobalMarketIntelligence.Tesla’smar- involvementinTwittercouldcausefur- panybymarketcapitalisation,endured strength.Theconcerndeepenedin asMusk’sTwitterforay ketvaluewas$435bn,down8percent therdamagetoTesla’sshareprice. abrutal2020asoilpricescrashedinthe OctoberwhenitcutpricesinChina,its onthedayandmorethan60percent Analystssaidthecontrastingshare earlymonthsofthepandemicandfossil second-biggestmarketandthesourceof talked to police shakesEVgroupinvestors belowitslevelinlateOctober,when performances of the two companies fuelproducersfelloutoffavourwith nearlyaquarterofitsrevenue.Shorten- chiefexecutiveElonMuskcompleted markedawiderstockmarketrotation environmental,socialandgovernance- ingwaitinglistsforitsvehiclesintheUS his$44bntakeoverofsocialmediaplat- awayfromgrowthstockssuchasTesla focusedinvestors. haveaddedtotheworries. DEREKBROWER—NEWYORK formTwitter. to value-oriented companies such as Theoilsupermajorrecordeditsfirst- Musk’ssignificantsalesofTeslastock RICHARDWATERS—SANFRANCISCO SharesinExxonwereupafurther commodity producers, which often everannuallossandwasremovedfrom topayforhistakeoverofTwitterand OLAFSTORBECK—MUNICH TeslahasfallenbelowExxonMobilin 1.24percentatlunchtimeinNewYork drawinvestorsduringdownturns. the Dow Jones Industrial Average. A provideextracashaftertheacquisition ThechiefwitnessintheWirecardtrial stockmarketvalueforthefirsttime yesterday,whileTesla’swereup0.22per “Asinvestorsshiftbacktovaluefrom year later, Exxon’s management was have also weighed on the company’s has rejected allegations that he since2020asinvestorsflockbacktoBig cent. growth,thefirmsthathavebeenaround defeatedinashareholderbattlewith shares. destroyed incriminating data before Oil and flee Elon Musk’s electric-car Musk,whorecentlylosthisposition forover100years,providingthesecu- EngineNo.1,anactivisthedgefund. A$3.6bnsalelastweek—thesecond reportinghimselftothepolice. maker. astheworld’srichestman,hasraised ritywe’vecometotakeforgranted,are ButrisingcrudepricesfollowingRus- inamonth—tooktheTeslachief’stotal Exxon’s shares ended trading on theprospectofstandingdownasTwit- onceagainontopofthemarket,”said sia’sinvasionofUkrainethisyearhave sharesalestonearly$40bnsincelate OliverBellenhaus,theformerheadofa Tuesdaywithamarketcapitalisationof terchiefexecutive,bringingsomerelief AndrewGillick,amarketstrategistat buoyedoilproducers.ExxoninOctober lastyearwhenhestartedtosellaftera Dubai-basedsubsidiaryatthecentreof morethan$439bn,up1percentonthe toTeslainvestorsworriedthathewas energyconsultancyEnverus.“Thisisn’t announcedrecordquarterlyprofits. Twitterpollaskingwhetherheshould afraudthatcausedthecollapseofthe dayandabout67percenthigherthanat becomingdistracted.Butanalystscon- ablip.” Worriesaboutweakeningdemandfor sellinordertopaymoretax. paymentsgroup,toldjudgesyesterday thestartoftheyear,accordingtoS&P tinued to warn this week that his Exxon,oncetheworld’sbiggestcom- Tesla’svehicleshavealsobeengathering SeeLex thatthelawyeroftheformerWirecard chiefexecutiveMarkusBraunwastry- ingtounderminehimbydistortingfacts thatweretakenoutofcontext.“There Financials. Asset management aredesperateattemptstocastadoubt aboutmycredibility,”hesaid. State Street’s ex-chief warns on consolidation AlfredDierlamm,Braun’sleadlaw- yer, last week accused Bellenhaus of deletingkeydataonserversbasedin Dubai.Dierlammarguedthatthedata would have proved the existence of Wirecard’soutsourcedbusinessinAsia, whichonpapergeneratedhalfofthe Formerleadersaystryingto paymentgroup’srevenueand€1.9bnin cash.Healsoarguedthatthealleged be‘allthingstoallpeople’ destructionofevidenceshowedBellen- canleadtoalossoffocus hauswasnotatrustworthywitnessbut waspresentinga“packoflies”. Braun, Bellenhaus and Wirecard’s MADISONDARBYSHIRE—NEWYORK formerheadofaccountingStephanvon Theformerheadofthefourth-largest Erffawerechargedwithfraud,embez- USassetmanagerhaswarnedthata zlement,andmarketandaccounting waveofconsolidationinthesectorrisks manipulationinaMunichcourtearlier blunting the edge firms have in an thismonth.Iffoundguilty,theyfaceup increasinglycompetitivemarket. Asset managers have raced to ‘WhatIdidwasshutting broadentheirofferingsthroughmerg- downtheserversonce ersandacquisitionsbutanattempt“to beallthingstoallpeople”ismisguided, theauditorsweredone said Cyrus Taraporevala, who this withtheirwork’ monthsteppeddownaschiefexecutive ofStateStreetGlobalAdvisors,which has$3.3tninassets. to15yearsinjail.Thecasetoalarge “Wehaveneverbeenabelieverinthat extenthingesonBellenhaus’stestimony trend,”TaraporevalatoldtheFinancial andcredibility. Times.“You’vegottobedistinctivein Bellenhaus told the judges on whatyou’reoffering.” Wednesdaythathedidnotdeleteany Assetmanagementhasexperienced dataonlocalserversinDubai. recordlevelsofdealmakinginthepast “WhatIdidwasshuttingdownthe fewyears,withmorethan2,200trans- servers once the auditors were done actions completed since the start of withtheirwork,”hesaid,claimingthata 2021,accordingtoRefinitiv.Theriseof referencetohisallegeddeletionoffiles, passiveindexinghasputpressureon inareportbyWirecard’scompliance managementfees,whiletechnologyhas team written after the business col- acceleratedchangeinthesector. lapsed,wasbasedona“misunderstand- Traditional asset managers have ing”ofastatementbyoneofhiscol- racedtobuildscaleaswellasdiversify leagues.Thatperson“onlytold[Wire- theirofferingsthroughM&A.Alterna- card’scompliance]thattheserverswere tives providers, who help investors shutdown,”Bellenhausinsisted. accessilliquidinvestmentssuchaspri- HehadtoldthecourtonMondaythat vateequityorcredit,havebeenpopular he built shadow IT infrastructure in acquisitiontargets,ashavegroupsthat Meetingthe StateStreetGlobalAdvisors,theasset down17percentsinceJanuary.State ‘Wehave marketthathasseenacorrection.“And, DubaitomakeWirecard’sauditorEY offercustomisedinvestmentproducts. challenge:Cyrus managementgroupwithinStateStreet Street’slargestinvestmentfundtracks unfortunately,partofthephenomenon thinktheoutsourcedoperationswere anentire Butassetmanagersthathavestrayed Taraporevala Corp, is focused on lower-cost index the S&P 500 index with more than ofthelatebullmarketistakingrisks, real.HesaidthatheshippedoldWire- outside their wheelhouse and added nearlydoubled products that helped the manager $375bn.AttheendofNovember,total generation sayingthingslike:‘Thistimeitisdiffer- cardserversfromMunichtoDubaifor newcapabilitieswithout“discipline”on thesizeofState achieve massive scale. Taraporevala netassetsforthefirmweredown$30bn ent,’”Taraporevalasaid. this purpose and bought some used ofportfolio priceorutilitycouldstruggle.“I’mnot Street’sfunds nearlydoubledthesizeofStateStreet sincethestartoftheyear,to$1.3tn,but Partofthechallengefacingtherap- serversoneBay,buttheinfrastructure sayingyoujusthavetofocusononeedge duringhis fundsduringhistenure,accordingto thegroupabsorbed$25bninnetinflows managers idly expanding asset management lackedtheITcertificatesnecessaryto orthatyoucan’texpandyouredge,”said tenure.Below, Morningstardata. over the same period, according to industry,hesaid,isthatmanymoney performpayment-relatedtasks. whohave Taraporevala,whotookoveratState newchief Butmarketshavetakenabeatingthis Morningstardata. managers and executives have never Later,heandsomecolleaguesmanu- StreetGlobalAdvisorsin2017.“Butbits Yie-HsinHung year, as rising inflation and interest Taraporevala,whowassucceededas never experiencedsuchchoppymarketsor allyforgeddatafrom200mncreditcard andbobsarenotanedge.” MichaelCohen/GettyImages rates have hit growth stocks. Invest- chiefexecutivebyformerNewYorkLife suchpervasiveinflation. transactionstodeceiveKPMGduringa Mergers in the asset management fortheNewYorkTimes; mentcompanieshavealsostruggled, chiefexecutiveYie-HsinHung,saidsen- actually “Wehaveanentiregenerationofport- forensicaudit.Bellenhaussaidthatit VictorJ.Blue/Bloomberg industryareknownforbeingdifficultto with State Street Corp’s share price timentinthemarkethadbeenchalleng- experienced foliomanagerswhohaveneveractually wouldhavebeenunnecessarytofabri- execute. While some deals have had ing,oscillatingbetween“highrisk”and experiencedinflation...You’dhaveto catethatdataiftheoutsourcedbusiness inflation’ happyendings,hesaid,“there’satleast “crisis”allyear.“It’sbeenquiteextraor- findmesomebodywhowasworkingin hadbeenreal. aslongalistthathaven’tbeensuccess- dinary.Weonlyputsomeriskbackona the early 1970s before I could start Bellenhaus,inlinewithWirecard’s ful”.InNovember,StateStreetcalledoff fewweeksago,”hesaid. bringing in talent who’ve lived with administratorandthepublicprosecu- adealtoacquireBrownBrothersHar- “Inourtacticalportfolios—andtacti- inflation.” tors,arguedthattheso-calledthird- riman’sinvestorservicesbusiness,cit- calistheoperativewordhere—wehave Somemanagerswhohavegrownup partyacquiring(TPA)businessdidnot ingregulatoryhurdles. beenmorerisk-offandoverweightcash outsidetheUSdohavefamiliaritywith existandwasinventedtodeceiveaudi- Thosewhowillbesuccessful“areable aswellascommodities,”Taraporevala the perils of inflation, said Tarapor- tors,investorsandcreditors. toanswerthequestion:isitreallyadd- said. The asset manager also under- evala,whogrewupinIndia. DierlammassertedthattheTPAoper- inganadditionaledge?”hesaid.“Just weightfixedincomeintheseshort-term “Iexperiencedinflationbytheacci- ationswererealandaccusedBellenhaus becauseyou’veacquiredsomecapabil- portfolios. dentofwhereIwasborn...Theseare andWirecard’sfugitivesecond-in-com- ity,unlessit’sdistinctive,it’snotlikethe Hesaidthat,dependingonaninves- realissuesmanypeoplehaven’tdealt mandJanMarsalekofhavingembez- clientdoesn’thaveotherchoiceswhere tor’sperspective,theUSiseitheratthe with in their professional careers... zled the proceeds without Braun’s theycangetexposuretothatassetclass endofanextraordinarybullmarketor that people will need to wrap their knowledge. orthatstyleorthatstrategy.” severalyearsintoa“darngood”bull headsaround.” ThetrialwillrestartinJanuary. Travel & leisure Financials Ishbia to buy Phoenix basketball teams Bankman-Fried consents to US extradition SARAGERMANO—NEWYORK NewsoftheSunsandMercurysale blank-chequecompanieswastakingoff. JOSHUAOLIVER—LONDON Americanhistory”bymisappropriating PersonnelfromtheFBIandUSMarshals ORTENCAALIAJ—LONDON wasearlierreportedbyESPN. ThedealwithGoresHoldingsIVvalued JOEMILLER—NEWYORK customerassetsfromFTXtohisprivate Servicehadalsoarrivedontheisland, JAMESFONTANELLA-KHAN—MILAN Asaleoftheteamswouldconclude themortgagelenderat$16bnandmade SamBankman-Friedtoldacourtinthe trading firm, Alameda Research. He thenewsagencyreported. USmortgagelendingbillionaireMat yearsoftumultunderSarver’sadminis- Ishbiaabillionaireonpaper.However, Bahamasthathewillconsenttoextra- wasarrestedlastweekintheBahamas, UnderUSlaw,Bankman-Friedmust Ishbiahasagreedadealtoacquirethe tration.Heagreedtosellthembothin sharesinthecompanyhavedeclinedby ditiontotheUS,amovethatcould wherehelives. bebroughtbeforeamagistrateinMan- PhoenixSunsandMercuryteamsata September soon after the NBA sus- morethanhalfsinceitmadeitspublic resultinthefounderofFTXarrivingin Bahamas magistrate Shaka Serville hattanwithintwodaysoflandingin valuationof$4bn,inwhatwouldbea pendedhimforusingracistandbullying marketdebut. NewYorkassoonaslateyesterdayto willcontactthecountry’sministerof NewYorkforaninitialhearingatwhich recordtransactionforaNationalBas- languageandbehaviourthroughoutthe Ishbiaisknowntobeabigbasketball facechargesoverthecollapsedcrypto- foreignaffairstosignofftheextradition, thechargesagainsthimwillbereadout. ketballAssociationfranchise. frontoffice. fanandplayedforMichiganStateUni- currencyexchange. localTVreportedyesterday. A decision will also be made on ThePhoenixtransactionwouldbethe versity.HehelpedtheSpartanstothe US embassy officials entered the whethertogranttheFTXfounderbail AnagreementbetweenIshbia—with latestinastringofrecordsalesofprofes- 2000NationalCollegiateAthleticAsso- Bankman-Fried arrived at a Nassau courthouse in Nassau shortly before untilatrialbegins.Theformerbillion- hisbrotherJustin—andtheteams’cur- sional sports teams this year. The ciationchampionshipandhasdonated courthousearound11amlocaltimeyes- Bankman-Fried,accordingtoReuters. aire’srequestlastweektobereleasedon rentowner,RobertSarver,willgivethe National Football League’s Denver millionstohisalmamater’sathleticpro- terdayunderheavypoliceguard.He bailintheBahamashadbeendenied. brothersmorethan50percentowner- Broncossoldfor$4.6bninJune,arecord gramme. signedpreliminarydocumentstoclear ShouldhearriveinNewYorkafter shipofthetwoteams.Thedealisstill priceforaprofessionalteam,toacon- “Basketballisatthecoreofmylife,” thewayforhisreturntohishomecoun- courthours,Bankman-Friedislikelyto subjecttoduediligenceandapprovalby sortiumledbyWalmartheirRobWal- IshbiasaidinastatementlateonTues- tryonTuesdaynight,accordingtoaper- beheldincustodyovernight.Wereheto theNBA’sboardofgovernors. ton. In football, Chelsea FC and AC day.Hesaidhehadspentthepasttwo sonfamiliarwiththematter. bedeniedbail,Bankman-Friedwould Asitstands,the$4bnvaluationofthe Milanfetchedrecordsumsfortransac- decades building United Wholesale, Thehearingconcludedabout40min- betransferredtoapre-trialfacility,such Sunsanditssisterteam,theWNBA’s tions of English Premier League and “andI’mconfidentthatwecanbring utes after Bankman-Fried’s defence asthenotoriousMetropolitanDeten- Mercury,comesinatalmostdoublethe continentalEuropeclubs,respectively. thatsamelevelofsuccesstothesegreat lawyertoldthecourtheis“anxiousto tionCenterinBrooklyn. enterprise valuations of other recent MatIshbiaischiefexecutiveofUnited organisationsonandoffthefloor”. leave”theBahamas,Reutersreported. SincehisarrestintheBahamaslast NBAtransactions.The2019saleofthe WholesaleMortgages,aDetroit-based JustinIshbiaisafoundingpartnerof The US Department of Justice last week,Bankman-Friedhadbeenheldat BrooklynNets,toAlibabaco-founder businessthatwentpublicthroughaspe- Chicago-based private equity firm weekfiledchargesagainstBankman- aNassauprisonknownforitsharsh JosephTsaifor$2.35bn,wasaUSprofes- cial purpose acquisition company in Shore Capital and is an investor in Friedandaccusedhimoforchestrating FTXfounderSamBankman-Fried conditions. sionalsportsrecord. September2020justastheboomin UnitedWholesale. “oneofthebiggestfinancialfraudsin arrivesatcourtinNassauyesterday SeeMarkets Thursday22December2022 ★ FINANCIAL TIMES 7 COMPANIES & MARKETS Emergency medicine goes under buyout knife For private equity, a slice of US healthcare spending appears to be just what the doctor ordered — but backlash is growing MARKVANDEVELDE—NEWYORK UnitedHealthcaretopayaTeamHealth subsidiary$60mnincompensationand KatiePorterdidnotgotothenearest punitive damages connected to one hospitalwhen,inthemiddleofher2018 suchclaim. campaignforelectiontoCongress,she TeamHealth said such episodes begansufferingpaininherabdomen. showedthatithad“theresourcesand “Iknewenoughtochoosetogotoan scaletofightbackagainstgiantinsur- in-networkemergencyroomwhenmy ancecompaniesthatareexploitingtheir appendixburst,”saidPorter.Inagony, hugesizetoslashpaymentstodoctors”. sheinsistedonbeingtakentoahospital UnitedHealthcaresaidcrucialevidence thatwascoveredbyherhealthinsur- was withheld from the jury and is ance,thoughitwasfurtheraway.“But appealing. mysurgeonwasoutofnetwork.”Soon “Idon’tthinkanybody’sasainthere,” after,shereceivedademandfromthe saidMarkMiller,whoadvocateshealth- doctorforabout$3,000. carereformatArnoldVentures,aphil- Porterlearntthehardwaythather anthropicfundsetupbyenergytrader hospital,likemanyintheUS,didnot JohnArnold.“It’struethattheinsurers employthedoctorswhoworkthere. engageinclaimsdenial,basichassleand ItisafeatureofthefragmentedUS allkindsofotheractivitiesthatfroma healthcare system that the private physician’spointofviewcouldbevery equityindustryhasseizedon.Overthe unfair.Butconsolidationisinherentto pastfiveyears,someofthecountry’s theprivateequitybusinessmodel,and biggestbuyoutfirmshavesnappedup onehugeoutcomeofconsolidationis thecompaniesthatemployemergency pricesgoup.” roomdoctors,capturingsomeofthe18 DoctorsatTexomaMedicalCenterin percentofgrossdomesticproductthat Denison,Texasdidnotunderstandhow theUSspendsonmedicalcare. privateequitywasgoingtochangethe Critics have said the result is an waytheyworkeduntilsixmonthsafter increasingly concentrated market in thetakeover. whichahandfulofWallStreet-backed “Theycameinsayingthatnothing companieshavethepowertocontrol wouldchange,”saidaTexasdoctoratan howemergencymedicineispractised emergency department that was andpaidfor. acquiredbyAPP.“Theydidn’tdoany- Thebuyoutfirmsandsomeinthe thingforsixmonthsandthentheyput healthcareindustrydismissthisfear, themodeltowork.” sayingscaleisnecessaryfordoctorsto Thatmodelisspeltoutinapresenta- holdtheirownindailynegotiationson tiongivenbyAPPexecutivesasthey billswithpowerfulinsurers. sought a cash infusion of $580mn, a Texasprovidesastrikingexampleof copyofwhichhasbeenseenbytheFT. theinroadsprivateequityhasmade. “Anypotentialnegativeimpactresult- Threegroupsemployphysiciansthat ingfromtheNoSurprisesAct”wouldbe staffaboutaquarterofthestate’s384 repaired — the presentation assured 18 emergencyrooms,anFTreviewofjob Lucrative comingtoahead.Inresponse,hehired anearlyversionofthelaw,whichthey ThebiggestUShealthinsurer,United- % potentiallenders—bycuttingdoctor postings and regulatory records has operations: an investment banker to work out arguedwouldhaveenabledbiginsur- Healthcare,hasfiledlawsuitsagainst wages,linkingearningsto“productiv- Shareof found.Thispatternisrepeatedacross KKRacquired whethertheyshouldselltoabiggerrival ancecompaniestosetratesunilaterally. EnvisionandTeamHealth,allegingthat ity”,replacingdoctorswithlessquali- grossdomestic thecountry.Asinglecompany,Team- physician ortoaprivateequityfirm. TeamHealthsaidithadlongeschewed bothcompaniesdrasticallyovercharged productspent fiedpersonnel,andreducingstaffing. Health,reportedin2017thatitpro- staffingbusiness “We’d grown, we’d built our infra- so-calledsurprisebillingasamatterof forroutineencountersbysubmitting onmedical APPstaffsatleastadozenemergency videdemergencystaffingto17percent Envisionand structure,butweneededtobebigger,” policy,andEnvisionendedthepractice billsindicatingthatpatientswouldhave careintheUS roomsintheHoustonarea,accordingto ofthehospitalsinitstargetmarket. Blackstone saidNewton. afteranewchiefexecutive,JimRechtin, riskeddeathorpermanentimpairment job advertisements published on the $1,712 TeamHealthwassoldtoBlackstone snappedup Manyexecutivesbelievethatemer- joinedin2020. unless they had received immediate, company’swebsite.Medicsinthecity for$6.1bnin2017,ataboutthesame TeamHealth, gencymedicshavebecomevulnerable Withpatientssafefromsurprisebills, complexcare. aresuingtoextricatethemselvesfrom Allegedbilltosee timerivalAmericanPhysicianPartners whileBrown toinsurerstryingtosqueezepayouts Rechtinsaid,insurerswerefreetopress Inonecasecitedinalawsuitfiledin non-competeagreementssimilartothe amanwithgastric wastakenoverbyBrownBrothersHar- Brothers becausetheyarerequiredbylawtotreat thenegotiatingadvantagecreatedbya Tennesseelastyear,TeamHealthalleg- painafterheate onepresentedtodoctorsatTexoma, riman.Thebiggestphysicianstaffing Harrimantook allcomers. 1986lawthatrequiredhospitalstotreat edlydemanded$1,712fortreatinga23- ahotdog.Hewas contending that APP’s efforts to cut company, Envision, was acquired by overAmerican In 2016, Newton sold the doctor’s emergencycasesregardlessofabilityto year-oldmanwhowalkedintoahospi- givenanantacid costsandboostprofitsendedupblight- KKRfor$9.9bnthefollowingyear. Physician grouphehadjoinedasayoungmedicto pay.“Asubsetofhealthplansbeganto talatmidnightcomplainingofepigas- ingtheemergencyroomswithinfight- AstheBidenadministrationtoughens Partners Envision,thebiggestproviderofstaffing sayineffect,‘Hey,ifyouhavetoseemy tricpainaftereatingachillidog.Court ingandmismanagement. competitionpolicyafteryearsofleni- FTmontage/GettyImages for hospital emergency rooms. Two patients,regardlessofwhetherIpay documentsstatethatthepatientwas One Houston doctor is accused of ency, antitrust enforcers are increas- yearslater,KKRboughttheenlarged you,whyshouldIpayyou?’” givenanantacidandsenthome. divertingperformancepaymentsthat inglyreceptivetoargumentsthatpri- group,makingNewtononeofthemost However,insurersclaimthatdoctors’ UnitedHealthcare alleges fraud in wereduetohiscolleaguesbybilling vateequitymoneyisdistortingthepro- senior executives at a company that groupsexploittheabsenceofanupfront about60percentofthehighest-cost insurancegroupsformorehoursthan visionofhealthcare. hoped,underprivateequityownership, negotiation to charge unreasonable medicalbillssubmittedbythetwopri- heworked,accordingtoacomplaint thatitwouldhavethefinancialheftto pricesforemergencycare. vate-equity-ownedcompanies,withthe ‘Consolidationisinherent standuptothebiggestinsurers. The stand-off has spawned an insurersayingithasmade$100mnin ‘Theacquisitionfeltmore Foraprivateequityindustrythathas expanding legal battle that casts an overpaymentstoTeamHealthalone. tothemodel,andonehuge likeahostiletakeoverand made billions of dollars and created unflatteringlightoninsurancecompa- Similarallegationshaveappearedin outcomeispricesgoup’ empiresbyassemblingcarwashes,den- niesandphysicianstaffinggroupsalike. testimony from doctors who have hadadevastatingimpact’ tists’ offices and local businesses of worked in private-equity-run emer- MarkMiller,ArnoldVentures everyconceivablekindintoefficiently gencyrooms. Rebeldoctors’lettertochief runnationalchains,a“roll-up”ofhospi- Caleb Hernandez, a physician who The Federal Trade Commission, tal emergency rooms seemed like a workedatvarioushospitalsinColorado, filedinHarrisCountyagainstseveral whosechairLinaKhanhasvowedto soundplan. claimedinalawsuitthathehadbeen APPsubsidiaries. takea“muscular”approachtopolicing Butprivateequityfirmshadnotreck- requiredtofalsifyrecordstoshowthat Another doctor allegedly told col- privateequitydealsthathave“life-and- onedonalegislativebacklashthatmade he had participated in the care of leaguestoworkwhileunwell,appearing death”consequences,hostedalistening ithardertocollectpaymentformedical patientswhoweretreatedbyless-quali- tocircumventCovidprotocolsbycom- sessiontoprobetheconsequencesof carethattheyarerequiredbylawto fied staff, so that TeamHealth could municating“hisfourMs:Motrin[ibu- healthcaremergersearlierthisyear. provide.Twoyearsafterherelection, claimreimbursementatahigherrate. profen],mask,manup,mustnottest”, Lawsuitsfiledinthepasttwoyearsby Porter,aDemocrat,joinedabipartisan Thecasewassettled;termshavenot thecomplaintsaid. employees,doctors’groupsandinsur- majorityinCongressthatpassedtheNo beendisclosed. TheAPPsubsidiariesnamedinthe ance companies sketch a picture of SurprisesAct,whichbansmedicalpro- ButTeamHealthandEnvisionargue lawsuithavedeniedtheallegations.APP thoseconsequences,allegingthatsome vidersfrombillingpatientsforcharges thattheyaretherealvictimsofalong- andBrownBrothersHarrimandeclined ofthebiggestfirmshavetamperedwith thathavebeenrejectedbytheirinsur- runningcampaignbyUnitedHealthcare tocomment. clinicalstandardstocutcostsorraise ancecompanies. toavoidpayinglegitimatemedicalbills. Theescalatingfightsoverdoctorpay bills,orthatinsomecasestheyhave Envision and Blackstone-owned FTC’sLinaKhan:toughlineondeals Theirargumentshavemetwithsome and working conditions may partly engagedinsystematicfraud. TeamHealthbothcampaignedagainst with‘life-and-death’consequences success.LastyearaNevadajuryordered reflectanindustryhitbyrisingcosts, Suchdisputes,togetherwithapoten- tougher reimbursement negotiations, tialregulatorycrackdown,threatennot andashortageofpatients,astheriskof only private equity’s profits but the infectionmademanypeoplewaryof OneinfourTexasemergencyroomhospitalsstaffedbythreebuyoutgroups* financialstabilityofalife-savingindus- settingfootinahospital. trythatissaddledwithbillionsofdol- Numberofacutebeds APP’sefforttoraisenewdebtfailed, larsofdebtfollowingthebuyoutdeals. forcing the company to negotiate a “I call it a monopolisation,” said a 100 restructuring. Texasdoctorwhohasworkedfortwoof 1,000 Afteralengthynegotiation,Envision thethreebiggestprivate-equity-backed this year used a complicated legal staffing companies and laments the manoeuvretopresentcreditorswitha decisionofsomemedicstosellthebusi- choicebetweenahaircutonitsdebtor nessestheyhavebuilt.“It’slikeourcol- beingpushedtothebottomoftheprior- leaguesaresellingthefuturegeneration ityqueueforrepayment.InOctober,a ofmedicine.” downgrade from Moody’s pushed Evenbeforeprivateequitybecame TeamHealthdeeperintojunkterritory. involved,hospitalshadcompellingrea- BackatTexoma,themedicsplotteda sontooutsourcestaffingofemergency rebellion.Unwillingtoembraceman- rooms,oftenrelyingonsmallgroups agementthattheyfeltworsenedpatient ownedbythedoctorsthemselves. care,yetreluctanttoriskacostlylaw- Some hospitals did not want the suit,theywrotetothehospital’schief administrativeoverheadoforganising executive,askinghimtohelpthemtake rotasornegotiatingwithinsurers.Oth- backcontroloftheiremergencyroom. ersruninstateswherefor-profithospi- “Theacquisitionfeltmorelikeahos- talsarebarredfromemployingdoctors tile takeover and had a devastating topractisemedicine,ameasurethatis impactnotonlyonourmoralebutin intendedtopreventtheprofitmotive patientcareandqualitymetricsaswell,” fromintrudingontreatmentdecisions. saidtheletter,signedbyfivedoctorslast Thoseincentivescreatedaninherent DecemberandseenbytheFT. tensionbetweendoctorsbothrunning Therebellionborefruit.Texomasaid companies and providing care, and it“nolongercontractedwithAPPforER openedthedoorforprivateequity. physician services”. APP’s removal ChrisNewtonhadonlyjustfinished pavedthewayforthedoctorstosetup hismedicalresidencyinMichiganwhen theirownstaffinggroupatthehospital. in 2002 he joined Emergency Physi- Suchoutcomesarerare.Accordingto Privateequity Unknown/other cians Medical Group, which ran the APP’spresentationtolenders,issuedin emergencyroomatStJoseph’sHospital November2021,onlyonecontractter- inAnnArbor.“Ireallydidn’tknowwhat mination had occurred in the com- EPMGdid,”saidNewton. pany’shistory. Twelveyearslater,hewaschiefexec- “Wewereabletopullitoff,”saidone utiveofabusinessemploying500doc- oftheTexomadoctors.“Thespiritis torsacross35emergencydepartments, back.It’snotabouthowmuchmoney justastheconflictbetweenmedicalpro- *AmericanPhysicianPartners,EnvisionandTeamHealth theycantakefromyou,it’sabouttaking Sources:AmericanHospitalDirectory;FTresearch viders and insurance companies was careofpatients.” 8 ★ FINANCIAL TIMES Thursday22December2022 COMPANIES & MARKETS Fixed income. Debt sell-off Crypto US bitcoin Japanese bonds sustain fresh miner Core blow in test of BoJ resolve Scientific files for bankruptcy JOSHUAOLIVER One of the largest US-listed bitcoin miners has filed for bankruptcy as companies battle falling token pricesandrisingcostsfortheenergy- intensive business of churning out cryptocurrencies. Core Scientific filed yesterday for Chapter 11 bankruptcy protection in Texas,whereitisbased.Thecompany saiditplannedtokeepoperatingand producingbitcoinwhileithammered outarestructuringdealwithitslenders andcreditors. TheNasdaq-listedcryptominerisa constituentoftheRussell2000Index,a widelyheldbenchmarkofsmallerUS companies,meaningitsbankruptcywill hittheportfoliosofmanyinvestorsand deepenthewoesofthecryptoindustry. Itsmarketvaluereachedalmost$3bn inAprilbuthassincefallentolessthan $100mn,accordingtoFactSetdata. It operated facilities in five US stateswherecomputerschurnthrough complex equations in a race against otherbitcoinnetworkparticipantsto createnewunitsofthecryptocurrency. Thecompanyisoneofseverallisted cryptominerswhosestockhasbeenhit astheirprofitsaresqueezedbetween tumblingpricesforcryptotokensand risingglobalpricesforthevastamounts ofenergyburntintheminingprocess. Yieldsstillsoaringasinvestors Takeahike: Thecentralbanknowownsmore Thebankruptcyfiling Japanesebondyields BoJshakesbondmarket theBankof thanhalfofoutstandingbonds.Onsome spotpathtohigherinterest shoothigher outofitsslumber ‘wasnecessitatedbya Japanhas days,nobondtradestakeplaceatall—a 10-yearyield(%) Dailychangein10-yearJapanese stressedthatthe sharpcontrastwithothermajorbond declineinthecompany’s ratesafterpolicyadjustment 0.8 governmentbondyield(percentagepoints) latestyield marketsintheUSandEuropewhere operatingperformance’ 0.15 curvecontrol billionschangehandseveryday. 0.6 KANAINAGAKIANDERISUGIURA adjustmentis Tradershavelongcomplainedabout TOKYO 0.4 0.10 notaraterise thisfrozenliquidity.Buttheysaythe Core Scientific began trading in Japanesegovernmentbondpriceshave PhilipFong/AFP/Getty timingofKuroda’sefforttolubricate Januaryfollowingadealwithaspecial 0.2 lurchedlowerforthesecondstraight 0.05 market functioning, at a point when purpose acquisition company backed dayasmarketsforcefullychallengedthe 0 inflation is accelerating and other byBlackRock.Itsstockisdown98per centralbank’sassertionthatitwasnot 0 centralbanksarepullinginterestrates centthisyear. -0.2 planningtoraiseinterestrates. rapidlyhigher,pointstoabiggershift. Thecompanysaidthebankruptcyfil- YieldsontypicallysleepyJapanese -0.4 -0.05 They are likely to test the central ing“wasnecessitatedbyadeclineinthe government bonds blasted higher on 2014 16 18 20 22 2020 21 22 bank’sabilitytosticktoitsnewlimitson company’soperatingperformanceand Tuesday, sending shockwaves across Source:Refinitiv volatility,analystssaid. liquiditysufferingfromtheprolonged globaldebtmarkets,afterBankofJapan “The BoJ may be forced to take decrease in the price of bitcoin, the governor Haruhiko Kuroda stunned thatfurtherchangesinpolicyaremore [inApril],”saidTakeshiYamaguchi, [further]measuresifmarketplayers, increaseinelectricitycosts...andthe investorsinhisfinalmonthsinoffice likely.” chief Japan economist at Morgan particularly outside of Japan, do not failurebycertainofitshostingcustom- withatweaktothewaythecentralbank OnTuesday,thecentralbanksaidit Stanley. “No matter how much believeKuroda’sremarksandcontinue erstohonourtheirpaymentobligations”. keeps a lid on long-term borrowing would allow 10-year bond yields to Kuroda says this is not a rate hike shortingJapanesegovernmentbonds,” Core also suffered from the bank- costs. fluctuateby0.5percentagepointsabove and that easing measures are being said Kiichi Murashima, economist at ruptcy of crypto lender Celsius Net- “This measure is not a rate hike,” orbelowitstargetofzero,replacingthe strengthened,noonebelieveshim.It’sa Citigroup. “An important task for work,whichcollapsedinthesummer. Kuroda said. “Adjusting the [yield previousbandof0.25percentagepoints. credibilityissue.” the new governor is to restore the Thetwocompanieshavebeenlocked curve control] does not signal...an Japan has kept long-term yields Thecentralbankhassoughttomatch BoJ’s reduced credibility and rebuild inadisputeoverhostingservicesthat exitstrategy.” pinned down since 2016 and the its words about sticking to an easy communication with markets,” he CoreprovidedtoCelsius,whichadded But in yesterday’s trading, yields previous range had been in place monetarypathwithaction. added. totheminer’sfinancialstrains. keptoncrankinghigher,withbench- since2021inanefforttorekindlelong- Inadditiontowideningthe10-year Mizuho’s Momma and Morgan The price of bitcoin, the largest mark10-yearyieldsreaching0.5per dormantinflation. yieldband,italsoboostedmonthlyJGB Stanley’sYamaguchisaidtheBoJcould cryptocurrency,hasfallenmorethan65 cent—lowbyglobalstandardsbuta Kuroda, who is stepping down as purchasesfrom¥7.3tnto¥9tn($68bn) scrap yield curve controls under the percentthisyearagainstthedollar,hit- significantdoublingfromthestartof governor in April, denied the andofferedanevenbroaderrangeof newgovernornextyearbutthehurdle tingtwo-yearlows. thisweekandthehighestpointsince adjustmentrepresentedatighteningof unlimitedbondbuying.Someanalysts to increasing interest rates would be London-listedminerArgoBlockchain mid-2015. monetary policy, saying the BoJ was saythissendstherightmessage. higher then due to global economic hasshed97percentthisyear.Valkyrie Pressure on the debt suggests that determinedtoeasefurtherifneededto “ThisisnotaturningpointinBoJ ‘Thegenie strains. BitcoinMinersETF,whichtracksaport- investors believe they can see the achieveits2percentinflationtarget. policy,”saidKazuoMomma,theformer “The next policy decision the BoJ foliooflistedminers,hasfallenabout80 isoutofthe beginningofanendtoJapan’ssix-year But that message is not cracking headofmonetarypolicyattheBoJwho takeswilllikelybeamajorone—suchas percentsinceitlaunchedinFebruary. experimentwithnegativeinterestrates through,especiallyascoreinflation— isnowexecutiveeconomistatMizuho bottleto changinglong-orshort-termpolicyrate Corehasupto5,000creditorsand andyieldtargeting. whichexcludesvolatilefoodprices— Research Institute. “If the market targetsorterminatingYCCaltogether, between$1bnand$10bninassetsand markets “Weallknowthisisastepinthat recentlyexceededtheBoJ’stargetfor functionimproves,thiswillbeaone-off andthiswilldependontheriskofglobal Ourglobal liabilities,accordingtocourtfilings. direction,” said Mark Dowding, chief theseventhmonthinarow,hittinga measure.” thatfurther economic slowdown in 2023,” said teamgivesyou Thecompanyowesabout$73mnto investment officer at BlueBay Asset 40-yearhighof3.6percentinOctober. MommasaidtheBoJ’sdecisionwas NaohikoBaba,chiefJapaneconomist market-moving its 30 largest unsecured creditors, changesin Management, whose long-running “Thebondmarketisalreadystarting basedinpartonabondmarketsurvey atGoldmanSachs,suggestingthatthe newsandviews, including unpaid taxes and energy negativebetonJapanesegovernment topriceinthattheBoJwillsteadilyhead conductedinNovemberthatshowed policyare centralbankcouldabandonitsnegative 24hoursaday suppliers.Itslargestunsecuredclaimis bondsthisweekdeliveredlargereturns. towardstheendofitsmonetaryeasing marketconditionsweredeterioratingto interestratepolicy. ft.com/markets $42mnowedtofinancialgroupBRiley, morelikely’ “Thegenieisoutofthebottletomarkets programmewiththechangeingovernor theworstlevelin15years. AdditionalreportingbyKatieMartin alendertothecryptominer. Financials Crypto South Korea’s Mirae builds presence in FTX customers to vie for priority European ETF sector with GHCO deal payouts in US bankruptcy case STEVEJOHNSON Asian bank trying to meaningfully petitortorivalissuers.GHCOclaimsto JOSHUAOLIVER Chapter 11 bankruptcy proceedings newyearatthelatesttorecognisethe expandinEuropeandindoingsothey be the largest market maker for on- in Delaware, including customers, customers’status. The South Korean financial group AgroupofFTXcustomerswilltryto aregenuinelyinclinedtoinvesttobuild exchangeETFtradinginEurope,with suppliersandlenders,whowillhaveto FTXdidnotrespondtoarequestfor Mirae has expanded its presence in securequickerrepaymentforpeople athirdalternativeinwhatisotherwisea monthly trading volumes of $3bn, vie with each other for priority to comment. Europebybuyingitsthird-largestmar- who have money trapped with the duopolyinmarketmakinginETFs,” accordingtoMirae. receiverepaymentoutofthecompany’s AjudgeoverseeingtheUSbankruptcy ketmakerinexchangetradedfunds. defunctexchangebyconvincingaUS saidDanIzzo,chiefexecutiveofGHCO, Howeveritisaverysmallplayeron remainingassets. ofcollapsedcryptolenderCelsiusthis courtthatclients’cryptoassetsremain Mirae is snapping up London-based whowillstayoninhisrole. “over-the-counter” off-exchange plat- TheactionbyFTXclientsisintended monthorderedthatasmallnumberof theirownproperty. GHCO,achallengertothenear-duopoly Thedealcouldraiseconcernsovera formssuchasTradewebandBloom- toavoidcustomersbeinglastinline. clientsshouldbepaidbackassetsthat ofFlowTradersandJaneStreetinoff- potentialconflictofinterest,giventhat berg,wherethevastmajorityoftrading LawyersrepresentingagroupofFTX “Iftheassetsbelongtothecustomer, werenevermingledwithothercashat exchangetradingofETFsinEurope. GHCOisleadmarketmakeronmore takesplace.Marketparticipantssaid clientswhohadatotalof$1.6bnstuck thereisnoline—it’sjusttheirassets,” thecompany.Thejudgeinthecaseis Themovecontinuesaflurryofactiv- than40percentofEuropeanETFlist- thatshouldassuageconcerns. ontheexchangewhenitcollapsedlast stillweighingthequestionofhowto ityinthefast-growingETFmarketby ings,accordingtoIzzo,andwillnowbe “Marketmakinghasonlyafewplay- monthsaytheyplantoarguethatthose ‘Iftheassetsbelong treatothercustomers’funds. Seoul-based Mirae Asset Financial ownedbyaparentthatisadirectcom- ersandhavinganotheronethatisbetter funds are held by FTX as “custody” Celsiushasaskedthecourttotreat tothecustomer, Group,whichhasdivisionsencompass- capitalisedisagoodthingforallplayers assets, meaning they should be paid clientfundsthatwereheldincustodyas ingassetmanagement,lifeinsurance intheETFmarketfromtheissuersto backswiftlyratherthanrolledintothe thereisnoline— beingownedbythecustomerswhile andbrokerageservices. theinvestors,”saidHectorMcNeil,co- sprawlingbankruptcyproceedingsfor viewingassetspledgedtoreceivehigh it’sjusttheirassets’ InJuneitboughtETFSecurities,one founderandco-chiefexecutiveofETF SamBankman-Fried’scryptoempire. interestpaymentsinthelender’s“earn” ofthepioneersofAustralia’sETFsector. issuerHANetf. Thestatusofcustomerdepositshas programmeasthecompany’sproperty. ThisbuiltonitsacquisitionofGlobalX, MJLytle,chiefexecutiveofTabula emergedasakeylegalquestioninthe said Erin Broderick, counsel to law The road to recovery for FTX aNewYork-basedissueralsoactivein InvestmentManagement,abondETF spateofbankruptciesofcryptocurrency firm Eversheds Sutherland, which is customers is further complicated by EuropeandAsia,in2018,anditspur- specialist,saidtheseparationinopera- firmsthisyear,includingthecollapseof representingthegroupofFTXclients. allegations that up to $10bn of the chase of Canada’s Horizons ETFs in tionsbetweenMiraeandGlobalXalso lendersCelsiusNetworkandVoyager FTX, founded by Bankman-Fried, roughly$16bnthattheexchangeheld 2011.SouthKorea-basedTigerETFis helps.“Iwouldtrustthattheywould Digital. frozecustomerwithdrawalsinNovem- wasloanedortransferredtoAlameda alsoinitsstable. runthebusinessseparately,”hesaid. Clients face being lumped into the berafterclientsrushedfortheexits. Research,aprivatetradingfirmalso Miraeoperatesmarket-makingdesks LytlesaidtheEuropeanETFmarket- category of “general unsecured Broderickarguedthatthecollapsed ownedbyBankman-Fried. inSouthKoreaandHongKong,anETF makingsectorhadnotfullyrecovered creditors”, which means they would exchange’s terms of service support The 30-year-old former billionaire tradingdeskinNewYorkandasmall fromtheretrenchmentofbankssuchas probablyhavealongwaittorecover clientshaving“ownershiprights”over hasdeniedintentionalwrongdoing.He teamoffixed-incometradersinLon- Deutsche Bank and Société Générale moneyandmightreceiveaslittleas thefundsleftintheiraccounts. wasarrestedintheBahamaslastweek don,butithasnotradinginfrastructure Seoul-basedMiraehasstruckseveral afterthe2008globalfinancialcrisis. penniesforeachdollartheyareowed. Shesaidthefirmplannedtomakea after US federal prosecutors charged forETFsinEurope.“Wehaveamajor dealsinthefast-growingETFmarket Financialtermswerenotdisclosed. FTXfacesasmanyas1mncreditorsin request to the court early in the himwithfraud. Thursday22December2022 ★ FINANCIAL TIMES 9 COMPANIES & MARKETS Tough decisions lie The day in the markets ahead on supervising Whatyouneedtoknow crypto exchanges 3USstocksriseasmarketsdigestBank USstocksbouncehigher ofJapanpolicychange S&P500index 3Bondssteadyafterinvestorssense Matthew Elderfield BoJissofteningpolicystance 3,900 3Yenmarginallyweakeragainstdollar afterprevioussession’ssurge Markets Insight 3,880 Stocksclimbedyesterdayandglobal bondmarketssteadiedfollowingaheavy sell-offsparkedbytheBankofJapan’s R 3,860 unexpecteddecisiontorelaxitspolicyof pinningyieldsclosetozero. egulatecryptoorletitburn? suchbundlingofmultipleservicesina difficultdecisionstomakeongranting OnWallStreet,theS&P500andthe 3,840 WhiledebateragesintheUS singlelegalentity.Someguardrailswill licences if exchanges aren’t ready in tech-heavyNasdaq100bothadvanced (andacrossthepixelsofthe beneededindetailedrulessetduring timeforthenewEUandUKrules. 1.4percent. Financial Times), it is therun-uptoimplementation. Theexchangeswillneedbigchanges EquitiesacrosstheAtlanticalsorose 3,820 alreadyoverintheEU—and Second,Micawillimposeclientasset to theirbusiness models before they withtheStoxxEurope600indexclosing soonwillbeintheUK. protectionrulesonserviceproviders. submitlicenceapplications.Micahasa 1.7percenthigher. TheFinancialServicesandMarkets FTX’sallegeduseofclientassetstofund raftofotherchallengingrequirements Thegainscameasstabilityreturnedto 3,800 Billiswindingitswaythroughparlia- its trading arm means creditors are thatalsoneedtobesortedquickly. governmentbonds,whichonTuesday ment.Itnowincludesabroaddefinition waitingtohearabouttheirlosses.These Exchanges will have to vet each wererockedbytheBoJ’sannouncement ofcryptoassetsthatwillbesubjectto creditorsarethoughttonumberatleast cryptoasset’ssuitabilityforcustomer thatitwouldallow10-yearJapanese 3,780 regulation.AUKTreasuryconsultation 100,000andcouldbemorethan1mn. tradingbasedonthe“reliabilityofthe yieldstoclimbashighas0.5percent Mon Tue Wed willfillinthedetailsshortly.Andin Thishasleftotherexchangesscram- solutionsused”andthepotentialassoci- comparedwith0.25percentpreviously. theEU,theMarketsinCryptoAssets bling to demonstrate the validity of ationwithfinancialcrime.Theywill Source:Refinitiv TheUS10-yearTreasuryyieldwas Regulation (Mica) was agreed this theirproofofreserves—theassetsthat needtodisclosetheadverseenviron- littlechangedat3.68percent,having summerandwillcomeinforceby2024. backcustomerpositions—withBinance mentalandclimate-relatedimpactof earliertouchedathree-weekhighof3.71 Theyenwasmarginallyweaker FederalReservechairJayPowellsaid With the aftershocks from the commissioningareportfromaccount- theminingrequiredforcryptoassets. percent,despiteacontinuedsell-offin yesterdayat¥132.40tothedollar therewas“moreworktodo”intamingUS collapseofthecryptoexchangeFTX Liabilityforlossesfromhackingofcus- Japanesegovernmentdebt.UKand followinganincreaseofalmost4percent inflationafterincreasinginterestrates reverberating,anewquestioncomes Supervisorsneedthe tomerwalletswillkickin.Tougherrisk Germanbondyieldswerealsosteady. onTuesday. lastweekwhileChristineLagarde, intofocus:howtosuperviseacrypto warnings for crypto investments will resourcesandpolitical WhileBoJgovernorHaruhikoKuroda Thecurrencywaslikelytorisefurther presidentoftheEuropeanCentralBank, exchange? comeintoforceinboththeEUandUK. stressedthatTuesday’smovewasnota asJapaneseinvestorssolddollar saiditwas“notdone”raisingrates. Micasetsadmirablytoughstandards covertorefuselicences Supervisorshavetightdeadlinesto shiftawayfromJapan’sultra-loose holdingstobuyJapanesedebt,drawnby “TheFed,ECBandBoJhaveall for crypto asset service providers, makelicensingdecisionsunderMica. untilproblemsaresorted monetarypolicy,investorssensedacrack theriseinyields,saidGeorgeSaravelos, deliveredhawkishsurprisesoverthe coveringexchanges.Exchangeswillnow Theriskisthattheracetobethecrypto inthecentralbank’sresolvetostand strategistatDeutscheBank. pastweek,”saidSteveEnglander,head needalicencefromonecountryinorder hubofEuropewillswaydecisions—like- apartfromtheglobaldashtohigher “TheBoJpolicyshift(despiteGovernor ofG10FXresearchatStandard togainapassporttodobusinessacross wisethenewUKimperativesforsuper- interestrates. Kuroda’sclaimstothecontrary)should Chartered,pointingoutthatmovesby theEU.Twobigchangesarecoming. ingfirmMazars.Butthereportislim- visorstoconsidercompetitiveness. “TheBoJhastakenafirststeptoward starttoputtheJapanesewallofmoney themostinfluentialcentralbankshad First,corporatestructure.Theservice itedinscopeonthecryptoassetsitcov- Binance,byfarthelargestexchange, tightermonetarypolicy,”saidUlrich towork,”Saravelossaid.“Thereisalot addeda“risk-offflavour”tomarkets providerswillneedtohaverobustcor- ers,unconvincingabouthowcustomer isthekeytestcase.Frenchregulatorthe Leuchtmann,currencystrategistat tomove.” headingintotheChristmasperiod. porategovernanceandcontrols,anEU liabilitiesarecalculatedandlackscom- AutoritédesMarchésFinanciersraised Commerzbank. TheBoJ’sdecisioncameafterUS TommyStubbington legalentityand,crucially,acorporate mentontheeffectivenessofinternal eyebrowsbyregisteringBinanceunder structurewithjurisdictionsthatdonot controls.Mazarsannouncedattheend pre-MicarulesdespiteBinancebeing preventeffectivesupervision. oflastweekthatithadstoppedprovid- finedbyDutchsupervisorsandtheUK’s Markets update FTX’s failure highlights the impor- ingproofofreservereportsentirelyand FinancialConductAuthoritysayingit tanceofthesestandards.Butitishardto painstakinglyqualifiedpastonesasnot wasunsupervisable.Whatwillhappen givetheotherexchangesgoodmarks. beinganassuranceexercise. inthe(re)licensingprocess? Thelargest,Binance,willstillnotsay Clientassetsegregationwasabignon- Supervisorsneedtheresourcesand US Eurozone Japan UK China Brazil whereitisheadquartered,forexample. cryptoprobleminthefailureofLehman politicalcovertorefuselicencesuntil Stocks S&P500 Eurofirst300 Nikkei225 FTSE100 ShanghaiComp Bovespa AstheBankofEngland’sJonCunliffe BrothersandthebrokerdealerMFGlo- corporate structure and client asset Level 3876.03 1704.68 26387.72 7497.32 3068.41 107165.49 says,partoftheproblemisthatthese bal.ThisledtoacrackdownintheUK problemsaresorted. %changeonday 1.42 1.63 -0.68 1.72 -0.17 0.28 arenotreally“exchanges”butrather andelsewherewithbigfines,detailed The best way to supervise crypto Currency $index(DXY) $per€ Yenper$ $per£ Rmbper$ Realper$ providemultiple,bundledservicesthat newregulationandincreasedpersonal exchanges?Startbynotlicensingthem Level 103.935 1.061 131.995 1.211 6.971 5.201 would be separated in traditional seniormanagerliability.Toughrules, untiltheyhavegottheiracttogether. financeforconflictofinterest,pruden- bespoke to crypto, will need to be %changeonday -0.029 -0.282 0.441 -0.247 0.001 0.271 tialandconsumerprotectionreasons. developedandadoptedatspeed. MatthewElderfieldisaformerfinancial Govt.bonds 10-yearTreasury 10-yearBund 10-yearJGB 10-yearGilt 10-yearbond 10-yearbond Mica unhelpfully appears to allow Supervisorsaregoingtohavesome regulator Yield 3.678 2.308 0.474 3.571 2.886 12.656 Basispointchangeonday -0.660 0.900 6.190 -2.100 -0.100 -10.800 Worldindex,Commods FTSEAll-World Oil-Brent Oil-WTI Gold Silver Metals(LMEX) Level 402.54 82.00 78.08 1813.90 23.74 3950.20 %changeonday 1.05 2.76 3.58 1.29 2.15 1.13 Yesterday'scloseapartfrom:Currencies=16:00GMT;S&P,Bovespa,AllWorld,Oil=17:00GMT;Gold,Silver=Londonpmfix.BonddatasuppliedbyTullettPrebon. Main equity markets S&P500index Eurofirst300index FTSE100index 7680 4160 1760 7360 4000 1680 7040 3840 1600 3680 | | | | | | | | | | | | | | | | | | | | 1520 | | | | | | | | | | | | | | | | | | | | 6720 | | | | | | | | | | | | | | | | | | | | Oct 2022 Dec Oct 2022 Dec Oct 2022 Dec Biggestmovers % US Eurozone UK Nike 13.70 Adidas 6.17 JdSportsFashion 6.09 Carnival 5.31 Philips 5.72 Ocado 4.83 s Fedex 4.82 Grifols 5.07 AngloAmerican 4.02 p U AmericanAirlines 4.47 A.p.Moller-MaerskB 4.34 Persimmon 3.59 Apa 4.26 Eni 3.55 St.James'sPlace 3.31 % HostHotels&Resorts -4.14 Bayer -1.16 Bunzl -0.96 WalgreensBootsAlliance -2.52 Oci -1.10 Halma -0.39 s n GeneracHoldings -2.05 Volkswagen -0.62 SevernTrent 0.08 w Do HiltonWorldwideHoldings -1.88 Commerzbank -0.60 Aveva 0.16 FirstSolar -1.24 CasinoGuichard -0.49 Homeserve 0.25 Pricestakenat17:00GMT BasedontheconstituentsoftheFTSEEurofirst300Eurozone AlldataprovidedbyMorningstarunlessotherwisenoted. Wall Street Europe London SportsweargroupNiketoppedtheS&P AgloomyupdatesentNorway’sXXL TheatrechainCineworldfellfollowing 500indexafterdeliveringforecast- tumblingwiththesportsgoodsretailer newsthatUSpeerAMCwasnolongerin beatingresultsforitsfiscalsecond warningthattradingduringthiscurrent talkstoacquire“certainstrategic... quarter. quarterremained“challenging”. assets”ofthebankruptgroup. A17percentyear-on-yearrisein Themarketwascharacterisedbyhigh Inaregulatoryfiling,AMCrevealed revenueto$13.3bntoppedthe$12.6bn inventorylevels,“resultinginaggressive that“atthistime,negotiationsarenot estimatedbyanalysts,althoughgross pricingandexcessivecampaign continuing”regardingdiscussionsover marginsweresqueezedowingto activities”,itsaid. theUSandEuropeanassetsofthe promotionalactivityandprice-cutting Coreprofitsforthequarterwere world’ssecond-largestcinemachain. aimedatclearinginventory. expectedtolandbetweenNKr50mn Cineworldfiledforbankruptcy TheperformancepromptedUBStolift ($5.1mn)andNKr100mn,downfrom protectioninSeptemberafterwarningin itspricetargetforNike. NKr403mnayearearlier,asheavy Augustthatticketsaleswerestill“below Thenewsalsospurredarallyinpeers discountingcontributedto“significantly expectations”. suchasUnderArmourandLululemon lowergrossmargins”,saidXXL. IntellectualpropertygroupTekcapital AthleticaandretailerDick’sSporting Alsointhesportssector,Germany’s jumpedonnewsthatacompanywithin Goods. AdidasandPumaralliedafterNikebeat itsportfoliohadstruckastatesidedeal. SixFlagsjumpedfollowinga WallStreetexpectationsovernight. USsupermarketchainHannaford presentationbyLand&Buildings,a AerospacegroupAviosankfollowing Brothersagreedtostockthetable-top shareholderwitha3percentstakeinthe the“prematuretermination”ofoneofits shakersofMicroSalt,adeveloperofa themeparksoperator. rocketmissions,itsaid. proprietarylow-sodiumsaltinwhich TheactivistinvestorsaidSixFlags’real TheItaliancompanysaidaroundtwo Tekcapitalownsamajoritystake. estatewas“likelyvaluedatmorethanthe andahalfminutes“afterthelift-offofthe Thetrimmingofitsproduction company’sentirecurrentequitymarket VegaClauncher,ananomalyoccurred”, scheduleleftScotgoldResourceslower capitalisationofapproximately$1.8bn”. addingthatmissiondatawasbeing withthepreciousmetalsproducer L&Bthereforeproposedarealestate analysedtoclarifywhathappened. forecasting2,000ouncesofgoldinthe investmenttrustconversionorproperty FrenchfragrancegroupInterparfums fourthquarter,fallingbelowaprevious salethathadthepotentialtoboostSix ralliedonnewsthatithadsigneda estimate3,000to3,500ounces. Flags’shareprice. licensingagreementwithfashionsports ChiefexecutivePhilDaysaidthe Thestockwasdownabout50percent brandLacoste. guidancemiss—causedbychangesto thisyearbeforeyesterday’srally. Underthe15-yeardeal,itwouldbe itsminingscheduleandharsherthan SoftwaregroupBlackBerryretreated responsibleforthecreation,development expectedweather—was“disappointing”. followinga17percentyear-on-yearfallin andmarketingofperfumeandcosmetics Nike’sbumperresultsacrossthe quarterlycybersecurityrevenue. linesundertheLacostebrand. AtlanticsentretailerJDSportstothetop RayDouglas RayDouglas oftheFTSE100index.RayDouglas 10 ★ FINANCIAL TIMES Thursday22December2022 MARKET DATA WORLDMARKETSATAGLANCE FT.COM/MARKETSDATA CChhaannggeedduurriinnggpprreevviioouussddaayy’’ssttrraaddiinngg((%%)) SS&&PP550000 NNaassddaaqqCCoommppoossiittee DDoowwJJoonneessIInndd FFTTSSEE110000 FFTTSSEEEEuurrooffiirrsstt330000 NNiikkkkeeii HHaannggSSeenngg FFTTSSEEAAllllWWoorrlldd$$ $$ppeerr€€ $$ppeerr££ ¥¥ppeerr$$ ££ppeerr€€ OOiillBBrreenntt$$SSeepp GGoolldd$$ -0.68% -0.282% -0.247% Nochange 1.42% 1.51% 1.52% 1.72% 1.63% 0.34% 1.05% 0.441% 1.88% 1.29% SSttoocckkMMaarrkkeettmmoovveemmeennttssoovveerrllaasstt3300ddaayyss,,wwiitthhtthheeFFTTSSEEAAllll--WWoorrllddiinntthheessaammeeccuurrrreennccyyaassaaccoommppaarriissoonn AAMMEERRIICCAASS EEUURROOPPEE AASSIIAA NNoovv2222---- Index AllWorld NNoovv2222--DDeecc2211 Index AllWorld NNoovv2222--DDeecc2211 Index AllWorld NNoovv2222--DDeecc2211 Index AllWorld NNoovv2222--DDeecc2211 Index AllWorld NNoovv2222--DDeecc2211 Index AllWorld S&P500 NewYork S&P/TSXCOMP Toronto FTSE100 London XetraDax Frankfurt Nikkei225 Tokyo Kospi Seoul 3,949.94 3,876.03 20,220.01 19,491.90 7,452.84 7,497.32 14,422.35 14,082.43 27,944.79 26,387.72 2,405.27 2,328.95 Day 1.42% Month -1.86% Year -16.62% Day 1.30% Month -2.10% Year -6.54% Day 1.72% Month 1.64% Year 2.75% Day 1.54% Month -2.76% YearNaN% Day -0.68% Month -5.37% Year -5.50% Day -0.19% Month -4.73% Year -21.40% NasdaqComposite NewYork IPC MexicoCity FTSEEurofirst300 Europe Ibex35 Madrid HangSeng HongKong FTSEStraitsTimes Singapore 11,024.51 10,706.09 51,569.72 50,071.65 1,722.66 1,704.68 8,325.00 8,302.30 17,424.41 19,160.49 3,259.56 3,256.19 Day 1.51% Month -2.88% Year -30.21% Day 0.47% Month -2.24% Year -3.21% Day 1.63% Month -0.34% Year -7.41% Day 1.43% Month 2.15% Year 0.73% Day 0.34% Month 6.34% Year -15.88% Day 0.07% Month -0.39% Year 6.07% DowJonesIndustrial NewYork Bovespa SãoPaulo CAC40 Paris FTSEMIB Milan ShanghaiComposite Shanghai BSESensex Mumbai 33,700.28 33,349.89 109,036.54 106,571.58 6,657.53 6,584.13 24,590.50 24,111.97 3,088.94 3,068.41 61,418.96 61,067.24 Day 1.52% Month -1.01% Year -6.01% Day 0.28% Month -2.28% Year 1.66% Day 2.01% Month -0.97% Year -4.22% Day 1.66% Month -2.45% Year -8.05% Day -0.17% Month -0.93% Year -14.61% Day -1.03% Month -0.93% Year 9.44% Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Country Index Latest Previous Argentina Merval 179037.32 172335.85 Cyprus CSEM&PGen 68.46 68.68 Italy FTSEItaliaAll-Share 26080.99 25703.58 Philippines ManilaComp 6520.80 6414.27 Taiwan WeightedPr 14234.40 14170.03 Cross-Border DJGlobalTitans($) 410.60 405.77 Australia AllOrdinaries 7293.00 7199.60 CzechRepublic PX 1183.06 1176.06 FTSEItaliaMidCap 39502.10 38930.11 Poland Wig 57264.12 56656.26 Thailand BangkokSET 1609.94 1604.44 EuroStoxx50(Eur) 3870.62 3802.49 S&P/ASX200 7115.10 7024.30 Denmark OMXCCopenahgen20 1816.51 1806.72 FTSEMIB 24111.97 23718.25 Portugal PSI20 5765.52 5737.94 Turkey BIST100 5429.13 5429.13 Euronext100ID 1255.86 1233.11 S&P/ASX200Res 6041.50 5895.50 Egypt EGX30 14541.98 14523.26 Japan 2ndSection 7228.27 7239.06 PSIGeneral 4462.15 4432.19 UAE AbuDhabiGeneralIndex 9222.93 9251.11 FTSE4GoodGlobal($) 9534.48 9412.24 Austria ATX 3119.36 3061.22 Estonia OMXTallinn 1760.78 1750.70 Nikkei225 26387.72 26568.03 Romania BETIndex 12261.02 12199.83 UK FT30 2752.80 2706.40 FTSEAllWorld($) 402.54 398.35 Belgium BEL20 3741.20 3671.37 Finland OMXHelsinkiGeneral 10943.89 10868.72 S&PTopix150 1624.73 1634.56 Russia MicexIndex 2436.57 2445.30 FTSE100 7497.32 7370.62 FTSEE300 1704.68 1677.27 BELMid 9609.32 9461.85 France CAC40 6580.24 6450.43 Topix 1893.32 1905.59 RTX 1245.71 1212.57 FTSE4GoodUK 6742.73 6631.49 FTSEEurotop100 3366.99 3311.59 Brazil IBovespa 107165.49 106864.11 SBF120 5050.53 4951.69 Jordan AmmanSE 2474.43 2474.47 Saudi-Arabia TADAWULAllShareIndex 10276.94 10280.15 FTSEAllShare 4095.42 4026.91 FTSEGlobal100($) 2459.78 2426.35 Canada S&P/TSX60 1181.27 1167.08 Germany M-DAX 25486.65 24962.50 Kenya NSE20 1656.34 1655.21 Singapore FTSEStraitsTimes 3256.19 3253.97 FTSEtechMARK100 6290.64 6170.72 FTSEGoldMin($) 1741.44 1689.47 S&P/TSXComp 19558.24 19306.89 TecDAX 2947.20 2901.74 Kuwait KSXMarketIndex 6633.44 6603.51 Slovakia SAX 341.88 341.88 USA DJComposite 11041.35 10888.00 FTSELatibexTop(Eur) 4440.00 4432.20 S&P/TSXDivMet&Min 1552.22 1515.44 XETRADax 14097.82 13884.66 Latvia OMXRiga 1159.54 1152.95 Slovenia SBITOP - - DJIndustrial 33349.89 32849.74 FTSEMultinationals($) 2584.62 2579.71 Chile S&P/CLXIGPAGen 27961.16 28095.10 Greece AthensGen 923.00 915.51 Lithuania OMXVilnius 944.34 948.47 SouthAfrica FTSE/JSEAllShare 73836.91 73040.51 DJTransport 13581.49 13384.63 FTSEWorld($) 729.77 721.57 China FTSEA200 10170.26 10162.41 FTSE/ASE20 2239.19 2220.36 Luxembourg LuxX 1454.79 1426.51 FTSE/JSERes20 72443.98 70718.61 DJUtilities 966.48 958.49 FTSEurofirst100(Eur) 4545.59 4470.39 FTSEB35 9000.71 8988.96 HongKong HangSeng 19160.49 19094.80 Malaysia FTSEBursaKLCI 1462.55 1467.32 FTSE/JSETop40 67672.38 66921.51 Nasdaq100 11228.21 11072.43 FTSEurofirst80(Eur) 5261.43 5168.50 ShanghaiA 3216.13 3221.71 HSChinaEnterprise 6500.18 6472.29 Mexico IPC 50375.15 50139.42 SouthKorea Kospi 2328.95 2333.29 NasdaqCmp 10706.09 10547.11 MSCIACWIFr($) 602.98 602.00 ShanghaiB 286.16 286.23 HSCCRedChip 3578.21 3568.47 Morocco MASI 10899.12 11065.16 Kospi200 303.23 304.05 NYSEComp 15207.90 15000.62 MSCIAllWorld($) 2592.86 2585.89 ShanghaiComp 3068.41 3073.77 Hungary Bux 45589.30 45481.08 Netherlands AEX 709.58 697.25 Spain IBEX35 8302.30 8185.20 S&P500 3876.03 3821.62 MSCIEurope(Eur) 1714.77 1719.50 ShenzhenA 2060.62 2070.36 India BSESensex 61067.24 61702.29 AEXAllShare 969.89 952.64 SriLanka CSEAllShare 8420.26 8508.53 Wilshire5000 38451.70 37891.24 MSCIPacific($) 2631.98 2601.22 ShenzhenB 1144.86 1143.40 Nifty500 15527.55 15726.20 NewZealand NZX50 11452.05 11404.83 Sweden OMXStockholm30 2065.13 2036.42 Venezuela IBC 16421.18 16635.30 S&PEuro(Eur) 1736.72 1706.34 Colombia COLCAP 1261.61 1260.21 Indonesia JakartaComp 6820.66 6768.32 Nigeria SEAllShare 49416.18 49414.96 OMXStockholmAS 788.17 775.69 Vietnam VNI 1018.88 1023.13 S&PEurope350(Eur) 1747.18 1718.61 Croatia CROBEX 2013.05 2011.29 Ireland ISEQOverall 7246.57 7106.83 Norway OsloAllShare 1017.37 1006.88 Switzerland SMIIndex 10845.59 10659.19 S&PGlobal1200($) 2902.67 2869.29 Israel TelAviv125 1813.45 1826.09 Pakistan KSE100 39342.89 39832.45 Stoxx50(Eur) 3717.08 3659.10 (c)Closed.(u)Unavaliable.†Correction.♥Subjecttoofficialrecalculation.Formoreindexcoveragepleaseseewww.ft.com/worldindices.Afullerversionofthistableisavailableontheft.comresearchdataarchive. STOCKMARKET:BIGGESTMOVERS UKMARKETWINNERSANDLOSERS AMERICA LONDON EUROMARKETS TOKYO Dec21 %Chg %Chg Dec21 %Chg %Chg Dec21 %Chg %Chg Dec21 %Chg %Chg ACTIVESTOCKS stock close Day's ACTIVESTOCKS stock close Day's ACTIVESTOCKS stock close Day's ACTIVESTOCKS stock close Day's FTSE100 price(p) week ytd FTSE250 price(p) week ytd FTSESmallCap price(p) week ytd IndustrySectors price(p) week ytd tradedm's price change tradedm's price change tradedm's price change tradedm's price change Winners Winners Winners Winners Tesla 108.3 138.81 1.01 RioTinto 179.1 5782.00 119.00 RocheGs 362.6 302.92 1.78 MitsubishiUfjFin,. 2625.1 850.50 32.10 Antofagasta 1559.50 6.9 15.9 GamesWorkshop 8615.00 15.3 - Hunting 323.00 22.3 101.9 IndustrialMetals 7878.17 3.3 23.7 Apple 50.0 135.55 3.25 Diageo 157.3 3693.00 63.50 NestleN 257.6 110.29 1.55 SumitomoMitsuiFin,. 1675.0 5179.00 205.00 Beazley 672.50 5.2 44.3 Drax 675.50 7.8 10.3 Trifast 68.80 18.0 -57.0 Mining 11097.91 3.3 - Nvidia 27.7 164.69 3.84 Shell 145.5 2354.50 47.00 NovartisN 237.6 86.14 1.15 ToyotaMotor 891.4 1808.00 -37.00 Centrica 95.88 4.2 34.3 Investec 510.40 6.8 24.0 Nanoco 43.40 15.7 - Oil&GasProducers 8217.25 2.6 43.8 Amazon.com 26.0 86.67 1.48 Bp 138.8 480.00 12.55 Totalenergies 191.8 59.03 1.73 Softbank. 701.1 5800.00 74.00 AngloAmerican 3249.50 3.7 7.6 Clarkson 3040.00 6.1 - Zotefoams 335.00 12.4 -17.8 Tobacco 36306.97 2.5 23.9 Nike 24.4 117.35 14.14 Glencore 121.9 560.80 12.80 AsmlHolding 180.8 544.10 14.10 MizuhoFin,. 599.4 1806.00 39.00 Glencore 560.80 3.7 47.9 Qinetiq 363.60 5.6 36.5 Fisher(james)&Sons 372.00 12.4 2.3 Aerospace&Defense 5133.63 2.5 22.6 Microsoft 22.9 243.67 1.87 Astrazeneca 113.3 11244.00 118.00 NovoNordiskBA/s 171.5 124.38 0.00 TokyoElectron 537.1 40970.00 -620.00 EndeavourMining 1759.00 3.3 8.6 Mitchells&Butlers 138.50 5.2 - OxfordBiomedica 416.00 12.0 -65.4 Banks 3282.97 1.7 7.8 AdvancedMicroDevices 15.4 67.37 2.32 Unilever 90.3 4225.00 68.50 Unicredit 161.3 13.40 0.20 FastRetailingCo., 490.1 79340.00 140.00 StandardChartered 625.80 3.2 39.9 ParagonBanking 560.00 4.7 -0.8 OnTheBeach 151.00 11.7 - NonlifeInsurance 3301.92 1.4 0.3 MetaPlatforms 11.1 119.60 2.51 Prudential 71.8 1092.50 34.50 IntesaSanpaolo 158.4 2.10 0.03 NintendoCo., 487.8 5540.00 -1.00 Fresnillo 881.80 3.2 0.5 TullowOil 37.98 4.6 - Saga 122.40 10.9 - Construction&Materials 6854.83 0.6 - Boeing 9.9 196.22 7.93 JohnsonMatthey 71.5 2139.00 -1.00 Eni 155.8 13.46 0.46 Sony 385.8 10185.00 -165.00 BaeSystems 860.40 3.1 56.3 HiltonFood 547.00 4.2 - CityOfLondonInvestment 450.00 9.8 - Food&DrugRetailers 4152.31 0.5 -5.1 Netflix 9.0 297.39 9.20 BritishAmericanTobacco 71.4 3353.50 39.00 UbsN 132.0 17.56 0.63 Dai-ichiLifeHoldings 382.4 2950.00 64.50 RioTinto 5782.00 2.8 18.1 GcpInfrastructureInvestments 101.80 3.9 -6.1 ToppsTiles 52.60 9.4 - Electricity 10636.58 0.5 5.5 Pearson 938.40 2.8 55.1 Wetherspoon(J.d.) 441.60 3.8 - Hostelworld 120.00 7.7 73.4 HealthCareEquip.&Services 10885.43 0.0 31.8 BIGGESTMOVERS Close Day's Day's BIGGESTMOVERS Close Day's Day's BIGGESTMOVERS Close Day's Day's BIGGESTMOVERS Close Day's Day's HsbcHoldings 511.30 2.7 14.1 Coats 71.50 3.8 3.2 Restaurant 29.60 6.7 - HouseholdGoods 10062.40 0.0 - price change chng% price change chng% price change chng% price change chng% Ups Ups Ups Ups Losers Losers Losers Losers Nike 117.35 14.14 13.70 TullowOil 37.98 2.34 6.57 AdidasAgNaO.n. 125.60 7.30 6.17 SumitomoMitsuiFin,. 5179.00 205.00 4.12 Segro 766.20 -7.0 - NationalExpress 130.40 -15.2 - PodPointHoldings 56.60 -18.0 - GeneralFinancial 11575.61 -5.3 0.1 Carnival 8.53 0.43 5.31 JdSportsFashion 120.15 6.90 6.09 PhilipsKon 13.11 0.71 5.72 MitsubishiUfjFin,. 850.50 32.10 3.92 AutoTrader 524.80 -6.9 - Currys 57.10 -12.6 - AbrdnEurLogisticsome 67.10 -13.2 - PersonalGoods 30661.80 -5.3 - Fedex 172.27 7.92 4.82 Iwg 158.20 8.65 5.78 A.p.M__ller-M__rskBA/s 2084.21 86.73 4.34 SumitomoMitsuiTrustHoldings,. 4583.00 144.00 3.24 Bunzl 2793.00 -6.8 -5.3 Trainline 265.00 -12.5 -4.4 IntPersonalFinance 67.20 -10.4 - RealEstate&InvestmentServic 2147.65 -4.4 - AmericanAirlines 13.09 0.56 4.47 LiontrustAssetManagement 1082.00 52.00 5.05 SiemensEnergyAgNaO.n. 17.49 0.65 3.86 ResonaHoldings,. 713.60 21.10 3.05 LondonStockExchange 7154.00 -6.0 2.2 MoltenVentures 344.20 -10.8 - Petrofac 71.70 -8.8 - RealEstateInvestmentTrusts 2220.04 -4.3 - Apa 46.01 1.88 4.26 Wood(john) 133.70 6.35 4.99 A.p.M__ller-M__rskAA/s 2047.90 75.30 3.82 KawasakiKisenKaisha, 2807.00 82.00 3.01 Halma 2048.00 -5.9 - Syncona 177.00 -10.2 - XpPower 1942.00 -8.8 - Software&ComputerServices 1787.55 -3.7 - Rightmove 526.80 -5.9 - BalancedCommercialPropertyTrust 88.20 -9.4 - Esken 5.29 -7.8 - Electronic&ElectricalEquip. 8858.83 -3.6 - Downs Downs Downs Downs Spirax-sarcoEng 10750.00 -5.7 - TritaxBigBoxReit 138.10 -9.0 - SchroderRealEstateInvestmentTrust 42.05 -7.7 - IndustrialTransportation 3508.94 -3.3 - HostHotels&Resorts 16.21 -0.70 -4.14 AstonMartinLagondaGlobalHoldings 156.85 -11.15 -6.64 Neste 44.55 -1.94 -4.17 HinoMotors, 513.00 -27.00 -5.00 Ocado 651.60 -5.4 - Discoverie 731.00 -9.0 - KinAndCarta 218.00 -7.6 - SupportServices 10020.84 -3.3 - WalgreensBootsAlliance 38.54 -1.00 -2.52 Syncona 177.00 -4.60 -2.53 BayerAgNaO.n. 48.80 -0.57 -1.16 TokyoTatemonoCo., 1660.00 -82.00 -4.71 CrodaInt 6650.00 -5.2 -34.3 Marshalls 264.60 -8.9 - Manchester&LondonInvestmentTrust 332.00 -7.3 - Travel&Leisure 6359.55 -2.8 - GeneracHoldings 89.07 -1.86 -2.05 BhMacro 4520.00 -80.00 -1.74 VolkswagenAgStO.n. 151.70 -0.95 -0.62 Fujikura 1014.00 -49.00 -4.61 Burberry 2028.00 -5.1 11.5 WatchesOfSwitzerland 830.00 -8.6 - PictonPropertyomeLd 76.70 -6.8 - IndustrialEngineering 13974.46 -2.8 - HiltonWorldwideHoldings 127.05 -2.44 -1.88 Marshalls 264.60 -3.20 -1.19 SartoriusAgVzoO.n. 340.80 -0.10 -0.03 TokyuFudosanHoldings 638.00 -26.00 -3.92 Experian 2834.00 -5.0 - SiriusRealEstateLd 73.40 -7.4 - AuroraInvestmentTrust 195.00 -6.7 - Chemicals 11754.93 -2.7 - FirstSolar 154.65 -1.94 -1.24 Videndum 1050.00 -12.00 -1.13 Edf 12.00 0.00 0.00 Panasonic 1145.00 -44.50 -3.74 ScottishMortgageInvestmentTrust 733.20 -4.9 - WizzAirHoldings 2066.00 -7.1 - Treatt 616.00 -6.7 -52.2 GeneralIndustrials 6091.89 -2.4 - BasedontheconstituentsoftheS&P500 BasedontheconstituentsoftheFTSE350index BasedontheconstituentsoftheFTSEurofirst300Eurozoneindex BasedontheconstituentsoftheNikkei225index Basedonlastweek'sperformance.†Priceatsuspension. CURRENCIES DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND DOLLAR EURO POUND Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Closing Day's Dec21 Currency Mid Change Mid Change Mid Change Dec21 Currency Mid Change Mid Change Mid Change Dec21 Currency Mid Change Mid Change Mid Change Dec21 Currency Mid Change Mid Change Mid Change Argentina ArgentinePeso 174.2502 0.3292 184.9573 -0.0866 211.0179 -0.1049 Indonesia IndonesianRupiah 15587.5000 -15.0000 16545.3342 -55.014118876.5793 -63.3527 Poland PolishZloty 4.3841 -0.0137 4.6535 -0.0255 5.3092 -0.0293 ..ThreeMonth 0.8260 0.0020 0.8761 0.0000 - - Australia AustralianDollar 1.4893 -0.0109 1.5808 -0.0154 1.8036 -0.0176 Israel IsraeliShekel 3.4688 0.0028 3.6819 -0.0057 4.2007 -0.0066 Romania RomanianLeu 4.6138 0.0011 4.8973 -0.0104 5.5873 -0.0120 ..OneYear 0.8264 0.0020 0.8752 0.0001 - - Bahrain BahraininDinar 0.3770 - 0.4002 -0.0009 0.4565 -0.0011 Japan JapaneseYen 131.9950 0.5800 140.1057 0.2862 159.8467 0.3218 Russia RussianRuble 71.6275 1.1275 76.0288 1.0200 86.7413 1.1612 UnitedStates UnitedStatesDollar - - 1.0614 -0.0025 1.2110 -0.0029 Bolivia BolivianBoliviano 6.9100 - 7.3346 -0.0173 8.3680 -0.0200 ..OneMonth 131.9944 0.5788 140.1055 0.2857 159.8461 0.3207 SaudiArabia SaudiRiyal 3.7610 - 3.9921 -0.0094 4.5546 -0.0109 ..OneMonth - - 1.0612 -0.1524 1.2111 -0.0029 Brazil BrazilianReal 5.2014 0.0141 5.5210 0.0019 6.2989 0.0020 ..ThreeMonth 131.9934 0.5768 140.1049 0.2846 159.8451 0.3186 Singapore SingaporeDollar 1.3505 0.0002 1.4335 -0.0032 1.6355 -0.0037 ..ThreeMonth - - 1.0607 -0.1524 1.2113 -0.0029 Canada CanadianDollar 1.3614 0.0002 1.4450 -0.0032 1.6486 -0.0037 ..OneYear 131.9885 0.5671 140.1016 0.2779 159.8461 0.3142 SouthAfrica SouthAfricanRand 17.1794 -0.1343 18.2350 -0.1860 20.8043 -0.2128 ..OneYear - - 1.0593 -0.1524 1.2116 -0.0029 Chile ChileanPeso 875.7000 -10.3450 929.5094 -13.2021 1060.4777 -15.0938 Kenya KenyanShilling 123.1500 -0.0500 130.7172 -0.3620 149.1353 -0.4173 SouthKorea SouthKoreanWon 1285.7500 -3.9000 1364.7558 -7.3729 1557.0506 -8.4577 Vietnam VietnameseDong 23725.0000 -30.0000 25182.8907 -91.398528731.1739 -105.1368 China ChineseYuan 6.9706 0.0000 7.3990 -0.0174 8.4415 -0.0201 Kuwait KuwaitiDinar 0.3064 0.0004 0.3252 -0.0004 0.3711 -0.0005 Sweden SwedishKrona 10.4075 -0.0038 11.0470 -0.0301 12.6035 -0.0347 EuropeanUnion Euro 0.9421 0.0022 - - 1.1409 0.0000 Colombia ColombianPeso 4757.1300 -9.8100 5049.4442 -22.3625 5760.9129 -25.6855 Malaysia MalaysianRinggit 4.4375 0.0040 4.7102 -0.0069 5.3738 -0.0080 Switzerland SwissFranc 0.9265 0.0005 0.9834 -0.0017 1.1220 -0.0020 ..OneMonth 0.9418 0.0022 - - 1.1408 0.0000 CostaRica CostaRicanColon 587.5850 0.7200 623.6904 -0.7071 711.5687 -0.8276 Mexico MexicanPeso 19.7095 -0.0495 20.9206 -0.1021 23.8683 -0.1172 Taiwan NewTaiwanDollar 30.7120 -0.0470 32.5992 -0.1270 37.1924 -0.1460 ..ThreeMonth 0.9414 0.0022 - - 1.1405 0.0000 CzechRepublic CzechKoruna 22.7806 0.0512 24.1804 -0.0027 27.5874 -0.0039 NewZealand NewZealandDollar 1.5876 0.0077 1.6851 0.0042 1.9225 0.0047 Thailand ThaiBaht 34.7300 -0.0350 36.8641 -0.1243 42.0582 -0.1431 ..OneYear 0.9399 0.0023 - - 1.1396 0.0000 Denmark DanishKrone 7.0063 0.0144 7.4369 -0.0022 8.4847 -0.0028 Nigeria NigerianNaira 455.7500 10.2500 483.7546 9.7629 551.9158 11.1227 Tunisia TunisianDinar 3.1255 0.0063 3.3175 -0.0011 3.7849 -0.0014 Egypt EgyptianPound 24.7343 0.0652 26.2542 0.0074 29.9534 0.0075 Norway NorwegianKrone 9.8389 -0.0502 10.4435 -0.0781 11.9150 -0.0894 Turkey TurkishLira 18.6648 0.0033 19.8116 -0.0433 22.6031 -0.0501 HongKong HongKongDollar 7.7918 0.0049 8.2706 -0.0143 9.4359 -0.0166 Pakistan PakistaniRupee 225.1500 -0.0250 238.9848 -0.5911 272.6579 -0.6824 UnitedArabEmirates UAEDirham 3.6725 -0.0005 3.8981 -0.0097 4.4474 -0.0112 Hungary HungarianForint 378.3504 -0.0039 401.5990 -0.9527 458.1845 -1.1004 Peru PeruvianNuevoSol 3.8233 -0.0128 4.0583 -0.0232 4.6301 -0.0265 UnitedKingdom PoundSterling 0.8258 0.0020 0.8765 0.0000 - - India IndianRupee 82.8175 0.0612 87.9064 -0.1425 100.2925 -0.1655 Philippines PhilippinePeso 55.0900 -0.1525 58.4751 -0.3004 66.7143 -0.3447 ..OneMonth 0.8259 0.0020 0.8764 0.0000 - - RatesarederivedfromWMReutersSpotRatesandMorningStar(latestratesattimeofproduction).Somevaluesarerounded.Currencyredenominatedby1000.Theexchangeratesprintedinthistablearealsoavailableatwww.FT.com/marketsdata FTSEACTUARIESSHAREINDICES UKSERIES FT30INDEX FTSESECTORS:LEADERS&LAGGARDS FTSE100SUMMARY www.ft.com/equities ProducedinconjunctionwiththeInstituteandFacultyofActuaries Dec21 Dec20 Dec17 Dec16 Dec15 YrAgo High Low Yeartodatepercentagechanges Closing Day's Closing Day's £Strlg Day's Euro £Strlg £Strlg Year Div P/E X/D Total FT30 2752.80 2706.40 2740.00 2718.90 2688.00 0.00 2870.10 2450.90 Oil&GasProducers 44.00 HealthCareEq&Srv -3.22 Construct&Material -19.44 FTSE100 PriceChange FTSE100 PriceChange Dec21 chge% Index Dec20 Dec19 agoyield% Cover ratio adj Return FT30DivYield - - - - - 0.00 3.93 2.74 Oil&Gas 43.27 GasWater&Multi -4.39 FTSE250Index -19.66 3IGroupPLC 1329 40.50 IntertekGroupPLC 3970 81.00 FTSE100(100) 7497.32 1.72 6656.03 7370.62 7361.31 7297.41 3.63 1.61 17.10 267.19 7698.28 P/ERationet - - - - - 0.00 19.44 14.26 Tobacco 23.96 NonlifeInsurance -5.33 OilEquipment&Serv -20.21 AbrdnPLC 191.05 6.05 JdSportsFashionPLC 120.15 6.90 FTSE250(250) 18863.65 1.72 16746.92 18544.76 18648.96 22820.30 3.21 0.78 39.80 551.07 15704.71 FT30hourlychanges Mining 23.19 Travel&Leisure -8.37 SupportServices -20.39 AdmiralGroupPLC 2076 19.00 KingfisherPLC 233.40 6.10 FTSE250exInvCo(171) 19324.07 1.90 17155.68 18963.12 19078.44 23596.84 3.32 1.62 18.58 583.67 16415.91 8 9 10 11 12 13 14 15 16 High Low Aerospace&Defense 21.96 LifeInsurance -8.65 IndustrialEng -22.79 AirtelAfricaPLC 112.60 2.10 LandSecuritiesGroupPLC 619.00 12.00 FTSE350(350) 4135.64 1.72 3671.57 4065.75 4064.64 4166.72 3.57 1.50 18.63 143.48 8427.39 2706.4 2731 2730.8 2733.2 2735.2 2739.3 2739.2 2741.5 2748.1 2752.8 2706.4 BasicMaterials 14.13 LeisureGoods -8.97 MobileTelecomms -24.90 AngloAmericanPLC 3249.5 125.50 Legal&GeneralGroupPLC 253.00 6.80 FTSE350exInvestmentTrusts(268) 4077.40 1.73 3619.86 4007.94 4005.61 4062.73 3.62 1.70 16.24 143.61 4293.98 FT30constituentsandrecentadditions/deletionscanbefoundatwww.ft.com/ft30 Pharmace&Biotech 12.39 Media -9.40 Telecommunications -25.39 AntofagastaPLC 1559.5 41.00 LloydsBankingGroupPLC 46.25 0.73 FFTTSSEE335500HLoigwheerrYYiieelldd((211382)) 34527668..7754 11..5867 33718795..7339 43250131..0190 43251012..4516 43736069..6395 25..0080 01..9724 1512..5523 19624..6913 58225263..8972 FTWILSHIRE5000INDEXSERIES HBaenakltshCare 117..3624 BFienvaenrcaigaelss -1-91..4315 FHioxeudseLhinoeldTGeoleocdosm&mHso --2266..9914 AAsshsotecaiadteGdroBurpitiPsLhCFoodsPLC 41759776 7313..0000 LMo&ndGonPLSCtockExchangeGroupPLC 18761.7504 504..0400 FTSESmallCap(235) 6191.05 1.01 5496.34 6128.92 6130.49 7269.29 3.53 -0.22-128.31 207.87 10419.79 Electricity 5.44 Software&CompServ -12.60 Chemicals -29.49 AstrazenecaPLC 11244 118.00 MelroseIndustriesPLC 131.50 3.55 FTSESmallCapexInvCo(126) 4949.55 1.18 4394.15 4891.77 4899.37 6033.36 3.75 2.33 11.43 161.59 8662.01 Dec20 Dec20 PersonalGoods 4.55 Technology -12.82 Electronic&ElecEq -30.22 AutoTraderGroupPLC 524.80 4.80 MondiPLC 1425 34.00 FFFFFFFFTTTTTTTTSSSSSSSSEEEEEEEEAAAFAAAFlllllllIeelllllM-----ddSSSSSgghhhmmAllaiiaalnnaarlrre-gglleeSllee((eh(e83x5xxax118MrI)II65ennn)u)vvv(l7tCCC3inooo7a)(((t313io159n)74a))ls(522)114443114030780589102360756230452........4992434622014956 -10111100........7971071106346421 11333303683577223305381052537543........8547224761226607 114433114029680482738249865511618........9704728610014066 114433114026980592783242757723944........8468525570934593 1145441127100513904502718647083440........8992567686987284 33331333........5576797674520992 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-------33334570345398.......70522674859709 AABBBBB&aaaevverraeiMvcrzvaaSllaaetyEPtyyGsuLsDtPrrCeoPoeLmpLuvCCeepslaoPPnpLLCmVCaelnutesRPeLtCailS.A. 44814614650735908722......71340050300800 115892248.......05231560004000 NNNOPPPeeecaaearrattxssriwdtohismoPnoienLansmGgCtlrPoGSGoLnuqrrCiopPuduLaPPCprLeLCPCHLColdingsLTD 12691065325205183690...925641..5080005 1316456304030.......50080000000000 BerkeleyGroupHoldings(The)PLC 3843 103.00 PhoenixGroupHoldingsPLC 611.60 17.60 FTSEAll-ShareTechnology(20) 1912.87 1.16 1592.27 1890.90 1908.85 2310.95 2.00 0.89 56.35 39.97 2771.23 FTSEAll-ShareTelecommunications(6)1401.56 1.07 1166.66 1386.66 1397.54 1856.97 7.56 1.04 12.75 99.22 2143.08 FTSEGLOBALEQUITYINDEXSERIES BPPLC 480.00 12.55 PrudentialPLC 1092.5 34.50 BritishAmericanTobaccoPLC 3353.5 39.00 ReckittBenckiserGroupPLC 5724 42.00 FTSEAll-ShareHealthCare(14) 14686.06 1.39 12224.65 14485.23 14464.53 13078.20 2.56 1.05 37.41 374.42 13602.14 FTSEAll-ShareFinancials(255) 4550.72 1.73 3788.01 4473.31 4463.39 4821.47 3.72 0.90 29.80 166.74 5065.45 Dec21 Noof US$ Day Mth YTD Total YTD GrDiv Dec21 Noof US$ Day Mth YTD Total YTD GrDiv BritishLandCompanyPLC 393.10 9.70 RelxPLC 2311 27.00 FTSEAll-ShareRealEstate(55) 813.39 1.90 708.29 798.26 809.76 1206.90 4.36 3.63 6.31 34.08 858.32 Regions&countries stocks indices % % % retn % Yield Sectors stocks indices % % % retn % Yield BtGroupPLC 113.50 1.50 RentokilInitialPLC 517.40 4.40 FTSEAll-ShareConsumerDiscretionary(83)4530.38 1.78 3771.08 4451.22 4469.96 5351.67 2.43 1.27 32.57 108.43 4806.40 FTSEGlobalAllCap 9443 677.16 0.2 -2.1 -20.1 1086.33 -18.3 2.4 OilEquipment&Services 24 272.84 1.7 -4.6 16.6 506.88 21.5 4.3 BunzlPLC 2793 -27.00 RightmovePLC 526.80 11.80 FTSEAll-ShareConsumerStaples(24)19626.43 1.43 16337.00 19349.06 19436.13 19727.30 3.90 1.13 22.70 698.72 18002.09 FTSEGlobalAllCap 9443 677.16 0.2 -2.1 -20.1 1086.33 -18.3 2.4 BasicMaterials 392 597.82 0.6 0.7 -11.1 1102.90 -7.2 4.5 BurberryGroupPLC 2028 26.00 RioTintoPLC 5782 119.00 FTSEAll-ShareIndustrials(84) 6231.20 1.48 5186.84 6140.16 6165.62 7238.02 2.30 1.36 32.06 138.27 7216.79 FTSEGlobalLargeCap 1898 606.07 0.1 -2.0 -20.2 1002.16 -18.4 2.4 Chemicals 195 785.75 0.6 -1.8 -18.9 1392.53 -16.5 3.2 CentricaPLC 95.88 1.50 Rolls-RoyceHoldingsPLC 91.12 2.69 FTSEAll-ShareBasicMaterials(22) 9370.86 2.47 7800.28 9145.20 9040.56 8137.77 5.80 2.01 8.58 539.20 12775.26 FTSEGlobalMidCap 2258 877.20 0.3 -1.7 -18.2 1324.25 -16.4 2.3 Forestry&Paper 20 254.45 0.9 -0.5 -16.6 516.08 -13.5 4.0 Coca-ColaHbcAG 1963.5 27.50 RsGroupPLC 921.00 20.00 FTSEAll-ShareEnergy(13) 8497.32 2.27 7073.15 8308.47 8255.71 5928.26 3.55 2.82 9.99 303.49 10340.10 FTSEGlobalSmallCap 5287 892.94 0.3 -2.9 -22.0 1288.41 -20.5 2.2 IndustrialMetals&Mining 99 492.44 0.9 1.7 -11.0 944.67 -6.1 5.2 CompassGroupPLC 1920.5 19.00 SageGroupPLC 760.80 11.20 FTSEAll-ShareUtilities(9) 8545.63 0.80 7113.37 8478.20 8455.67 8768.77 4.49 0.57 38.81 373.12 13029.95 FTSEAll-World 4156 398.35 0.2 -2.0 -19.8 676.77 -18.1 2.4 Mining 78 967.90 0.4 4.2 4.0 1889.92 10.6 6.0 ConvatecGroupPLC 231.40 6.40 Sainsbury(J)PLC 221.80 1.30 FTSEAll-ShareSoftwareandComputerServices(18)2062.08 1.15 1716.47 2038.63 2058.39 2486.31 2.00 0.89 56.29 43.17 3160.52 FTSEWorld 2665 721.57 0.3 -2.2 -19.6 1645.16 -17.9 2.4 Industrials 802 486.36 0.3 -1.5 -19.0 776.87 -17.3 2.1 CrhPLC 3303.5 69.50 SchrodersPLC 442.80 12.60 FTSEAll-ShareTechnologyHardwareandEquipment(2)5114.01 1.95 4256.89 5016.23 4995.01 6352.84 2.36 0.69 61.13 92.89 6628.49 FTSEGlobalAllCapexUNITEDKINGDOMIn 9154 714.36 0.2 -2.2 -20.3 1124.00 -18.6 2.3 Construction&Materials 156 556.21 0.0 -1.5 -24.7 937.00 -23.1 2.3 CrodaInternationalPLC 6650 68.00 ScottishMortgageInvestmentTrustPLC 733.20 19.20 FTSEAll-ShareTelecommunicationsEquipment(1) 598.19 2.14 497.93 585.67 593.72 622.70 2.06 2.31 21.08 11.51 855.06 FTSEGlobalAllCapexUSA 7636 487.08 0.2 0.5 -18.8 866.84 -16.3 3.3 Aerospace&Defense 35 893.08 0.7 2.3 11.2 1395.57 12.9 1.5 DccPLC 4132 102.00 SegroPLC 766.20 14.40 FTSEAll-ShareTelecommunicationsServiceProviders(5)2144.18 1.02 1784.81 2122.49 2138.51 2868.55 7.83 1.02 12.51 157.08 2988.23 FTSEGlobalAllCapexJAPAN 8039 704.88 0.0 -2.4 -20.3 1140.87 -18.6 2.4 GeneralIndustrials 76 235.93 0.8 -1.8 -15.0 417.50 -12.8 2.6 DiageoPLC 3693 63.50 SevernTrentPLC 2668 2.00 FTSEAll-ShareHealthCareProviders(3)10961.87 1.12 9124.64 10840.33 10909.43 8303.19 0.53 4.88 38.52 58.27 10174.39 FTSEGlobalAllCapexEurozone 8783 715.72 0.2 -2.2 -20.0 1123.26 -18.3 2.3 Electronic&ElectricalEquipment 157 605.90 0.1 -2.9 -24.6 871.32 -23.4 1.6 EndeavourMiningPLC 1759 27.00 ShellPLC 2354.5 47.00 FTSEAll-ShareMedicalEquipmentandServices(2)5518.69 2.34 4593.74 5392.32 5430.25 5773.65 2.59 0.97 40.05 142.76 5330.84 FTSEDeveloped 2175 662.24 0.3 -2.3 -19.7 1069.45 -18.1 2.2 IndustrialEngineering 158 985.72 0.5 0.1 -14.8 1568.75 -13.0 2.0 EntainPLC 1330.5 25.00 Smith&NephewPLC 1094 23.00 FTSEAll-SharePharmaceuticalsandBiotechnology(9)21023.67 1.34 17500.06 20745.86 20705.24 18579.42 2.58 1.04 37.27 539.80 17533.53 FTSEDevelopedAllCap 5817 689.43 0.3 -2.4 -20.0 1096.92 -18.3 2.2 IndustrialTransportation 131 899.72 -0.7 -1.4 -19.0 1467.22 -16.3 3.6 ExperianPLC 2834 32.00 Smith(Ds)PLC 319.50 4.30 FTSEAll-ShareBanks(12) 3239.72 1.54 2696.74 3190.59 3154.77 2963.16 4.03 2.63 9.44 129.94 2868.34 FTSEDevelopedLargeCap 833 620.44 0.3 -2.4 -20.0 1019.72 -18.3 2.2 SupportServices 89 502.32 0.6 -3.8 -29.3 748.32 -28.3 1.6 F&CInvestmentTrustPLC 910.00 16.00 SmithsGroupPLC 1609 25.50 FTSEAll-ShareFinanceandCreditServices(8)9943.85 0.91 8277.24 9854.24 9892.01 9749.59 2.13 2.28 20.61 210.32 13362.83 FTSEDevelopedEuropeLargeCap 218 377.20 0.2 0.7 -16.1 747.81 -13.4 3.3 ConsumerGoods 566 539.05 -0.6 -1.3 -21.8 907.24 -20.1 2.5 FlutterEntertainmentPLC 11650 220.00 SmurfitKappaGroupPLC 3089 59.00 FTSEAll-ShareInvestmentBankingandBrokerageServices(31)8409.76 2.77 7000.27 8183.10 8269.97 10370.30 5.27 1.55 12.27 437.54 11880.01 FTSEDevelopedEuropeMidCap 354 561.13 0.0 -0.3 -27.2 965.87 -25.1 3.1 Automobiles&Parts 132 454.81 -2.3 -9.4 -41.2 735.01 -40.3 2.3 FrasersGroupPLC 743.00 21.50 Spirax-SarcoEngineeringPLC 10750 65.00 FTSEAll-ShareClosedEndInvestments(191)11581.91 1.34 9640.76 11428.52 11475.48 14016.87 2.75 -3.43 -10.58 305.55 7260.48 FTSEDevEuropeSmallCap 743 788.16 0.0 -0.3 -28.6 1303.20 -26.6 3.3 Beverages 72 771.30 -0.1 1.6 -4.3 1314.08 -2.2 2.3 FresnilloPLC 881.80 15.60 SsePLC 1716 13.50 FTSEAll-ShareLifeInsurance(6) 7106.65 2.84 5915.56 6910.10 6904.72 7620.87 4.31 1.08 21.46 294.59 8696.74 FTSENorthAmericaLargeCap 235 818.38 0.1 -3.9 -21.5 1230.99 -20.3 1.8 FoodProducers 134 717.13 -0.1 0.3 -8.7 1237.49 -6.6 2.5 GlaxosmithklinePLC 1453.2 26.20 St.James'sPlacePLC 1108.5 35.50 FTSEAll-ShareNonlifeInsurance(7) 3715.26 1.30 3092.58 3667.46 3634.27 3630.37 3.85 1.24 20.94 130.27 7912.17 FTSENorthAmericaMidCap 422 1084.65 0.3 -3.0 -17.0 1509.50 -15.5 1.9 HouseholdGoods&HomeConstruction 64 534.43 -0.1 3.8 -18.3 901.52 -16.1 2.7 GlencorePLC 560.80 12.80 StandardCharteredPLC 625.80 4.60 FTSEAll-ShareRealEstateInvestmentandServices(10)2058.26 1.95 1713.29 2018.97 2022.86 3056.55 2.47 3.66 11.09 43.02 6143.06 FTSENorthAmericaSmallCap 1331 1051.59 0.5 -4.6 -20.3 1402.34 -19.1 1.7 LeisureGoods 53 229.70 0.2 -1.7 -27.9 325.07 -26.9 1.5 HaleonPLC 320.70 6.15 TaylorWimpeyPLC 102.75 3.13 FTSEAll-ShareRealEstateInvestmentTrusts(45)2021.11 1.89 1682.37 1983.69 2016.76 2990.07 4.71 3.63 5.85 93.16 3075.41 FTSENorthAmerica 657 537.33 0.2 -3.7 -20.7 826.41 -19.4 1.8 PersonalGoods 97 898.57 -0.3 0.9 -22.2 1385.84 -20.7 1.9 HalmaPLC 2048 -8.00 TescoPLC 226.90 2.50 FTSEAll-ShareAutomobilesandParts(2)1473.26 -2.96 1226.34 1518.14 1567.49 3426.88 0.77-34.22 -3.80 14.02 1532.70 FTSEDevelopedexNorthAmerica 1518 259.96 0.5 1.0 -17.6 498.01 -15.1 3.2 Tobacco 14 1010.84 0.4 3.9 5.1 2862.19 10.0 6.1 HargreavesLansdownPLC 855.80 24.00 UnileverPLC 4225 68.50 FTSEAll-ShareConsumerServices(2)3162.84 0.99 2632.74 3131.88 3135.49 2632.83 1.21 2.76 29.85 38.43 4012.05 FTSEJapanLargeCap 169 376.84 2.6 2.8 -17.3 554.01 -15.3 2.6 HealthCare 339 721.38 0.1 0.9 -8.6 1151.07 -7.0 1.8 HomeservePLC 1198 3.00 UniteGroupPLC 906.00 20.00 FTSEAll-ShareHouseholdGoodsandHomeConstruction(11)8406.11 2.97 6997.22 8163.89 8165.57 14544.96 8.84 1.60 7.06 710.24 7564.21 FTSEJapanMidCap 339 529.87 2.3 3.1 -13.7 739.89 -11.5 2.7 HealthCareEquipment&Services 132 1350.89 -0.3 -0.4 -18.8 1658.95 -18.0 1.0 HSBCHoldingsPLC 511.30 8.50 UnitedUtilitiesGroupPLC 1018 8.00 FTSEAll-ShareLeisureGoods(2) 23114.40 1.84 19240.38 22695.98 23001.62 24836.75 2.92 1.59 21.47 831.45 25832.18 FTSEGlobalwiJAPANSmallCap 896 591.65 2.4 3.7 -15.0 857.97 -12.6 2.8 Pharmaceuticals&Biotechnology 207 493.65 0.3 1.8 -0.7 846.98 1.6 2.2 ImperialBrandsPLC 2083 17.00 VodafoneGroupPLC 84.50 0.70 FTSEAll-SharePersonalGoods(4) 26366.32 1.97 21947.27 25857.54 26332.06 29616.91 2.13 2.80 16.74 558.37 20738.30 FTSEJapan 508 155.09 2.5 2.9 -16.6 255.30 -14.5 2.6 ConsumerServices 428 512.50 0.0 -2.8 -27.3 732.37 -26.4 1.3 InformaPLC 618.40 15.20 WeirGroupPLC 1707 46.00 FTSEAll-ShareMedia(11) 9371.74 1.67 7801.01 9218.14 9253.68 9807.77 2.36 1.47 28.83 221.42 6593.97 FTSEAsiaPacificLargeCapexJapan 1081 665.65 -1.2 1.4 -20.2 1214.48 -17.8 3.2 Food&DrugRetailers 69 317.54 0.3 -0.3 -7.8 505.46 -5.6 2.4 IntercontinentalHotelsGroupPLC 4801 32.00 WhitbreadPLC 2659 45.00 FTSEAll-ShareRetailers(22) 1845.33 2.55 1536.05 1799.50 1807.22 2754.69 2.99 3.08 10.89 54.64 2408.65 FTSEAsiaPacificMidCapexJapan 859 955.99 -1.0 2.4 -15.7 1681.72 -13.0 3.5 GeneralRetailers 141 889.16 -0.4 -4.2 -30.5 1216.02 -29.8 1.0 InternationalConsolidatedAirlinesGroupS.A. 129.58 1.74 WppPLC 820.80 21.00 FTSEAll-ShareTravelandLeisure(29)6217.65 1.56 5175.56 6121.94 6148.69 7290.20 0.65 -7.30 -21.02 40.99 6431.06 FTSEAsiaPacificSmallCapexJapan 2053 530.79 -1.5 0.5 -27.1 906.55 -25.0 3.2 Media 75 285.25 0.5 -3.0 -39.2 410.20 -38.5 1.4 FTSEAll-ShareBeverages(5) 28275.12 1.71 23536.15 27798.45 27862.04 31020.58 2.12 2.01 23.55 584.47 22660.17 FTSEAsiaPacificExJapan 1940 530.68 -1.2 1.5 -19.7 1029.01 -17.3 3.3 Travel&Leisure 143 443.46 0.3 -0.2 -13.5 648.10 -12.5 1.2 UKSTOCKMARKETTRADINGDATA FTSEAll-ShareFoodProducers(10) 5877.35 1.84 4892.29 5770.91 5836.17 6831.29 2.63 2.27 16.77 152.70 5725.05 FTSEEmergingAllCap 3626 697.90 -0.8 1.1 -20.7 1219.19 -18.0 3.7 Telecommunication 89 126.88 0.3 -3.0 -14.4 299.71 -10.9 4.4 FTSEAll-ShareTobacco(2) 36307.03 1.10 30221.89 35910.96 36046.57 29921.27 6.53 0.87 17.62 1906.82 34100.23 FTSEEmergingLargeCap 1065 643.43 -0.8 1.1 -21.8 1130.71 -19.0 3.7 FixedLineTelecommuniations 31 99.10 0.8 -2.8 -12.1 269.45 -7.5 5.3 Dec21 Dec20 Dec19 Dec16 Dec15 YrAgo FTSEAll-ShareConstructionandMaterials(15)7272.21 1.70 6053.37 7150.82 7148.50 8765.30 3.18 0.66 47.93 230.56 8873.56 FTSEEmergingMidCap 916 1017.15 -0.3 1.4 -11.5 1786.40 -8.3 3.9 MobileTelecommunications 58 149.98 0.1 -3.1 -15.6 304.88 -12.7 4.0 OrderBookTurnover(m) 89.11 45.09 93.57 93.57 93.57 518.98 FTSEAll-ShareAerospaceandDefense(7)5387.46 1.41 4484.51 5312.78 5281.88 4277.47 2.18 0.10 460.84 104.10 6571.04 FTSEEmergingSmallCap 1645 750.52 -1.0 0.9 -22.5 1253.33 -19.9 3.5 Utilities 199 319.25 0.3 1.9 -7.0 748.10 -4.0 3.3 OrderBookBargains 514068.00 476735.00 851537.00 851537.00 851537.00 655002.00 FTSEAll-ShareElectronicandElectricalEquipment(11)10426.27 1.04 8678.81 10318.64 10425.18 13866.19 1.69 2.09 28.42 161.86 10312.46 FTSEEmergingEurope 116 126.90 0.5 12.0 -69.4 266.12 -68.0 2.8 Electricity 141 362.08 0.4 2.0 -6.1 835.31 -3.2 3.2 OrderBookSharesTraded(m) 1034.00 897.00 2985.00 2985.00 2985.00 1133.00 FTSEAll-ShareGeneralIndustrials(8)4901.76 1.38 4080.21 4835.21 4865.29 5551.73 2.96 1.22 27.68 151.23 6486.36 FTSELatinAmericaAllCap 261 696.51 3.0 -1.8 -1.8 1388.02 7.4 10.4 GasWater&Multiutilities 58 313.50 0.0 1.5 -9.1 760.87 -5.9 3.7 TotalEquityTurnover(£m) 7890.73 5740.91 19616.71 19616.71 19616.71 5856.96 FTSEAll-ShareIndustrialEngineering(5)15436.64 1.31 12849.43 15237.11 15328.46 19475.17 1.69 2.01 29.40 261.52 20735.59 FTSEMiddleEastandAfricaAllCap 331 720.03 -0.1 -4.9 -9.6 1320.53 -6.8 3.3 Financials 852 255.77 0.5 -1.6 -14.8 492.35 -12.1 3.3 TotalMktBargains 674002.00 637458.00 1051844.00 1051844.00 1051844.00 840215.00 FTSEAll-ShareIndustrialSupportServices(30)9639.11 1.60 8023.58 9487.35 9555.60 12169.98 2.00 1.67 29.96 196.21 11101.62 FTSEGlobalwiUNITEDKINGDOMAllCapIn 289 313.32 0.1 1.2 -12.9 641.47 -9.8 3.7 Banks 269 194.90 1.0 -1.9 -13.9 418.32 -10.4 4.2 TotalSharesTraded(m) 4836.00 4879.00 8043.00 8043.00 8043.00 6207.00 FTSEAll-ShareIndustrialTransportation(8)5298.42 1.62 4410.39 5213.94 5247.05 6818.77 2.10 3.34 14.25 102.86 5556.14 FTSEGlobalwiUSAAllCap 1807 921.99 0.2 -3.8 -20.9 1336.92 -19.7 1.7 NonlifeInsurance 72 361.77 1.2 1.7 3.2 604.58 6.3 2.9 †Excludingintra-marketandoverseasturnover.*UKonlytotalat6pm.‡UKplusintra-marketturnover.(u)Unavaliable. FTSEAll-ShareIndustrialMaterials(1)16753.13 1.52 529.78 16503.08 16403.06 20503.83 1.96 1.81 28.16 329.06 21161.70 FTSEEuropeAllCap 1466 426.58 0.2 0.6 -20.3 811.97 -17.8 3.2 LifeInsurance 52 223.60 1.3 3.6 -7.5 431.61 -3.8 3.9 (c)Marketclosed. FTSEAll-ShareIndustrialMetalsandMining(9)8482.62 2.62 7060.92 8265.81 8158.53 6788.57 6.17 2.02 8.02 517.75 13021.33 FTSEEurozoneAllCap 660 412.43 0.3 -0.1 -20.5 778.99 -18.0 3.2 FinancialServices 209 418.17 0.1 -3.5 -16.2 635.65 -14.8 1.8 FTSEAll-SharePreciousMetalsandMining(5)10478.27 1.75 8722.09 10297.96 10168.59 18255.71 3.44 1.83 15.90 358.99 7387.54 FTSEEDHEC-RiskEfficientAll-World 4156 459.00 0.2 -1.3 -15.9 723.97 -13.8 2.8 Technology 359 446.67 0.0 -4.4 -34.2 583.39 -33.5 1.2 FTSEAll-ShareChemicals(7) 12978.87 1.07 10803.58 12841.23 12912.45 18039.31 2.69 1.82 20.35 355.95 13039.64 FTSEEDHEC-RiskEfficientDevelopedEurope 572 310.77 0.1 0.4 -24.8 547.10 -22.5 3.3 Software&ComputerServices 184 676.85 0.3 -2.0 -36.7 819.06 -36.3 0.7 AlldataprovidedbyMorningstarunlessotherwisenoted.Allelementslistedareindicativeandbelieved FTSEAll-ShareOil.GasandCoal(12)8249.08 2.27 6866.52 8065.70 8014.43 5753.31 3.55 2.82 9.99 294.63 10410.31 Oil&Gas 130 400.20 1.2 -4.8 22.1 822.99 28.2 4.8 TechnologyHardware&Equipment 175 394.46 -0.5 -6.9 -31.2 554.67 -30.2 1.7 accurateatthetimeofpublication.NoofferismadebyMorningstarortheFT.TheFTdoesnotwarrantnor Oil&GasProducers 86 397.81 1.3 -5.1 25.2 840.54 32.0 5.1 AlternativeEnergy 20 188.26 -1.2 0.1 -9.7 270.18 -9.3 0.4 guaranteethattheinformationisreliableorcomplete.TheFTdoesnotacceptresponsibilityandwillnotbe FNToSnEFSineacntocriaInlsd(i3c3e0s) 5009.76 1.69 4447.61 4926.37 4927.85 5002.67 3.53 1.63 17.41 170.86 9070.19 RReeaallEEssttaatteeInInvveesstmtmeenntt&TSruesrvtsices 114028 244390..4545 --10..57 -02..98 --2247..28 1408069..3744 --2225..05 34..20 lFioarblaellfqourearnieysloes-smaariilsfitn.grefardoemr.tehnequreirliieasn@cemoonrnoirnugssetaor.fctohmelistedinformation. FTSEGlobalLargeCap 1898 606.07 0.1 -2.0 -20.2 1002.16 -18.4 2.4 Hourlymovements 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 High/day Low/day TheFTSEGlobalEquitySeries,launchedin2003,containstheFTSEGlobalSmallCapIndicesandbroaderFTSEGlobalAllCapIndices(large/mid/smallcap)aswellastheenhancedFTSEAll-WorldindexSeries(large/ DataprovidedbyMorningstar|www.morningstar.co.uk FTSE100 7384.15 7395.83 7407.23 7412.82 7440.09 7445.77 7438.64 7458.54 7489.95 7497.32 7380.00 midcap)-pleaseseehttps://research.ftserussell.com/Products/indices/Home/indexfiltergeis?indexName=GEISAC¤cy=USD&rtn=CAP&segment=global-developed–emerging.ThetradenamesFundamentalIndex® FTSE250 18573.16 18685.35 18675.65 18677.99 18726.18 18744.09 18743.72 18771.85 18855.98 18865.98 18573.16 andRAFI®areregisteredtrademarksandthepatentedandpatent-pendingproprietaryintellectualpropertyofResearchAffiliates,LLC(USPatentNos.7,620,577;7,747,502;7,778,905;7,792,719;PatentPendingPubl. FTSESmallCap 6127.52 6137.33 6140.72 6146.27 6157.62 6159.46 6161.18 6167.97 6190.45 6191.26 6123.65 Nos.US-2006-0149645-A1,US-2007-0055598-A1,US-2008-0288416-A1,US-2010-0063942-A1,WO2005/076812,WO2007/078399A2,WO2008/118372,EPN1733352,andHK1099110).”EDHEC™”isatrademark FTSEAll-Share 4033.92 4042.83 4047.78 4050.50 4064.59 4067.75 4064.52 4074.54 4091.81 4095.42 4032.50 ofEDHECBusinessSchoolAsofJanuary2nd2006,FTSEisbasingitssectorindicesontheIndustrialClassificationBenchmark-pleaseseewww.ftse.com/icb.ForconstituentchangesandotherinformationaboutFTSE, TimeofFTSE100Day'shigh:16:35:28Day'sLow08:35:30FTSE1002010/11High:7672.40(10/02/2022)Low:6826.15(12/10/2022) pleaseseewww.ftse.com.©FTSEInternationalLimited.2013.AllRightsreserved.”FTSE®”isatrademarkoftheLondonStockExchangeGroupcompaniesandisusedbyFTSEInternationalLimitedunderlicence. TimeofFTSEAll-ShareDay'shigh:16:45:37Day'sLow08:11:00FTSE1002010/11High:4296.96(10/02/2022)Low:3712.50(12/10/2022) Furtherinformationisavailableonhttp://www.ftse.com©FTSEInternationalLimited.2013.AllRightsreserved.”FTSE®”isatrademarkofthe LondonStockExchangeGroupcompaniesandisusedbyFTSEInternationalLimitedunderlicence.†SectorP/Eratiosgreaterthan80arenotshown. ForchangestoFTSEFledglingIndexconstituentspleaserefertowww.ftse.com/indexchanges.‡Valuesarenegative. UKRIGHTSOFFERS UKCOMPANYRESULTS UKRECENTEQUITYISSUES Amount Latest Company Turnover Pre-tax EPS(p) Div(p) Payday Total Issue Issue Stock Close Mkt Issue paid renun. closing 4Global Int 1.389 1.262 1.236L 0.091 4.300L 0.000 0.00000 0.00000 - 0.000 0.000 date price(p) Sector code Stock price(p) +/- High Low Cap(£m) price up date High Low Stock Pricep +or- AberdeenDiversifiedIncomeandGrowthTrust Pre 1.416 21.139 0.230L 6.670 1.40000 1.38000 Jan19 2.800 2.760 12/15 29.84 AIM S247 Smarttech247GroupPLC 30.00 -0.75 31.46 30.00 3722.4 TherearecurrentlynorightsoffersbyanycompanieslistedontheLSE. AstraZeneca Pre 7349.000 8292.000 2053.000 3288.000 1.280 2.080 0.00000 0.00000 - 0.000 0.000 12/05 0.30 HELD HellenicDynamicsPLC 0.15 -0.01 0.32 0.13 1910.8 CapitalMetals Int 0.000 0.000 0.378L 1.197L 0.001L 0.002L 0.00000 0.00000 - 0.000 0.000 Carnival Pre 12169.000 1908.000 6080.000L 9522.000L 5.160L 8.460L 0.00000 0.00000 - 0.000 0.000 Coca-ColaEuropacificPartners 1st 1868.000 1844.000 149.000 144.000 0.360 0.320 0.00000 0.00000 - 0.000 0.000 Coca-ColaEuropacificPartners 3rd 6146.000 1844.000 713.000 144.000 1.940 0.320 0.00000 0.00000 - 0.000 0.000 Coca-ColaEuropacificPartners Pre 6146.000 1844.000 713.000 144.000 1.940 0.320 0.00000 0.00000 - 0.000 0.000 Coca-ColaEuropacificPartners Pre 4076.000 1844.000 429.000 144.000 1.040 0.320 0.00000 0.00000 - 0.000 0.000 Coca-ColaEuropacificPartners Pre 1868.000 1844.000 149.000 144.000 0.360 0.320 0.00000 0.00000 - 0.000 0.000 GreatSouthernCopper Int 0.000 0.000 0.481L 0.085L 0.226L 0.000 0.00000 0.00000 - 0.000 0.000 IntuitiveInvestmentsGroup Pre 0.000 - 1.567L - 2.010L - 0.00000 - - 0.000 - Figuresin£m.Earningsshownbasic.Figuresinlighttextareforcorrespondingperiodyearearlier. §Placingprice.*Intoduction.‡Whenissued.Annualreport/prospectusavailableatwww.ft.com/ir Formoreinformationondividendpaymentsvisitwww.ft.com/marketsdata ForafullexplanationofalltheothersymbolspleaserefertoLondonShareServicenotes.
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