Financial Times UK - 03.03.2020

World Markets

STOCK MARKETS

Mar 2 prev %chg

S&P 500 3035.58 2954.22 2.

Nasdaq Composite 8806.33 8567.37 2.

Dow Jones Ind 26151.51 25409.36 2.

FTSEurofirst 300 1469.19 1464.48 0.

Euro Stoxx 50 3340.52 3329.49 0.

FTSE 100 6654.89 6580.61 1.

FTSE All-Share 3706.83 3673.61 0.

CAC 40 5333.52 5309.90 0.

Xetra Dax 11857.87 11890.35 -0.

Nikkei 21344.08 21142.96 0.

Hang Seng 26291.68 26129.93 0.

MSCI World $ 2141.12 2177.25 -1.

MSCI EM $ 1005.52 1030.67 -2.

MSCI ACWI $ 512.76 521.92 -1.

CURRENCIES

Mar 2 prev

$ per € 1.113 1.

$ per £ 1.275 1.

£ per € 0.873 0.

¥ per $ 107.925 107.

¥ per £ 137.561 137.

SFr per € 1.068 1.

€ per $ 0.898 0.

Mar 2 prev

£ per $ 0.785 0.

€ per £ 1.145 1.

¥ per € 120.137 118.

£ index 79.416 80.

SFr per £ 1.223 1.

COMMODITIES

Mar 2 prev %chg

Oil WTI $ 46.95 44.76 4.

Oil Brent $ 52.00 49.67 4.

Gold $ 1609.85 1652.00 -2.

INTEREST RATES

price yield chg

US Gov 10 yr 1.09 -0.

UK Gov 10 yr 0.40 -0.

Ger Gov 10 yr 106.22 -0.63 -0.

Jpn Gov 10 yr -0.14 0.

US Gov 30 yr 123.76 1.65 -0.

Ger Gov 2 yr 106.01 -0.83 -0.

price prev chg

Fed Funds Eff 1.55 1.55 0.

US 3m Bills 1.27 1.45 -0.

Euro Libor 3m -0.47 -0.46 -0.

UK 3m 0.67 0.72 -0.

Prices are latest for edition Data provided by Morningstar

JI M P I C K A R D

CHIEF POLITICAL CORRESPONDENT

Boris Johnson has given the go-ahead

to onshore wind farms in Britain four

years after David Cameron, his prede-

cessor, imposed a moratorium on sub-

sidies for land-based wind turbines.

The prime minister’s move comes as

lower prices of electricity produced by

wind farms in recent years make the

technology significantly cheaper than

other forms of low-carbon power, such

asnuclearenergy.

Ahead of November’s Cop26 global

climate change talks in Glasgow, the

government is under growing pressure

toadoptastrategytohititstargetofnet-

zerocarbonemissionsby2050.Inaplan

set out to climate groups in Downing

Street yesterday, onshore projects will

be allowed to compete for subsidies

alongside other renewable energy tech-

nologies,suchasoffshorewind.

Onshore wind farms have long been

unpopular with grassroots Conserva-

tives in rural areas because of their vis-

ual effect on the landscape as well as

their impact on birdlife. Mr Cameron in

effect killed off their construction after

the 2015 general election when he said

he wanted to “rid” the countryside of

the “unsightly” structures. In 2016 he

excluded onshore wind from the gov-

ernment’s system of subsidies for low-

carbon electricity, leading to their low-

estlevelsinadecadeforcapacity.

However, Alok Sharma, business sec-

retary, said that cutting carbon emis-

sions would mean “making the most of

every technology available”, including

onshore wind and solar. He pledged the

government would do that in a way that

didnotalienatecommunities.

Under the plan, projects will be eligi-

ble to apply for a new “contracts for dif-

ference (CFDs)” auction in 2021, which

means wind farms could be up and run-

ning by the mid-2020s. Campaigners

cautioned that because of planning

restrictions, most of the new projects

were likely to be built in Scotland rather

thanEngland.

John Sauven, executive director of

Greenpeace, said onshore wind and

solar were some of the cheapest availa-

ble sources of energy. “The government

now needs to engage with local commu-

nities in order to get large amounts of

onshore wind and solar off the ground,”

he added. “Leading by example, by

tripling the UK’s wind and solar by

2030, is a prerequisite for successful UK

leadership at this year’s global climate

talksinGlasgow.”

Patrick Jenkinspage 14

Johnson reverses Cameron’s block

on ‘unsightly’ onshore wind turbines

Next week’s Budget will present Boris

Johnson’s election pledge to ‘level up’

the regions with its first real test. With

voters who backed the prime minister

in traditionally Labour areas of Wales,

northern England and the Midlands

looking for results, the pressure is on.

But the challenge is huge. On simple

measures, the UK is one of the most

regionally unequal big economies,

exacerbated by the flight of the

educated and skilled to the south-east.

AnalysisiPAGE 2

Voters wait to see if

Tories are on the level

TUESDAY 3 MARCH 2020

Briefing

iPatel faces inquiry over bullying claims

Cabinet Office minister Michael Gove has told MPs

that home secretary Priti Patel will face an internal

bullying probe after her department’s top civil

servant quit.— PAGE 2; ROBERT SHRIMSLEY, PAGE 11

iUK risks net loss in US trade accord

Ministers have said a US trade deal might deliver

only a small economic boost, which critics say will

fail to make up expected losses from exiting the EU.

— PAGE 4; CITY ACCESS, PAGE 3; GIDEON RACHMAN, PAGE 11

iNokia to replace chief executive Suri

The Finnish telecoms group has said that Pekka

Lundmark, chief of utility Fortum, will take over

from Rajeev Suri on September 1 as it struggles in

the 5G race with Huawei.— PAGE 15; LEX, PAGE 12

iJaguar Land Rover hits back over IR

The carmaker has rejected

claims that its handling of the

new payroll law could land it

with higher tax bills and

potential legal challenges from

its army of contractors.— PAGE 13

iSilicon Valley backs Warren and Sanders

Donations from workers at big tech groups have

favoured Bernie Sanders and Elizabeth Warren

ahead of today’s Super Tuesday vote, despite their

threats to curb the sector.— PAGE 6; NOTEBOOK, PAGE 10

iBramson ramps up Barclays pressure

Activist investor Edward Bramson has called on the

board to withdraw its “ill-advised” backing for chief

Jes Staley after regulators started a probe into his

ties with Jeffrey Epstein.— PAGE 14; LOMBARD, PAGE 17

iNMC appeals to lenders for more time

The healthcare group that is under investigation by

the City regulator has sought more time to stabilise

its finances, as it looks to safeguard its cash and

sustain operations.— REPORT & LOMBARD, PAGE 17

Datawatch

UK £2.90 Channel Islands £3.20; Republic of Ireland €3.

© THE FINANCIAL TIMES LTD 2020

No: 40,338★

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Foreign bond exposure

Share of government debt held,

by overseas ownership type ()

     

Greece

Ireland

Germany

France

Spain

US

Italy

UK

Japan

Korea

Oicial Banks Other

Source: Deutsche Bank Research

NEWS PROVIDER OF THE YEAR

Ninety per cent of

Greek sovereign

debt was held by

foreign entities

around this time

last year — a stark

contrast to the

15 per cent of

Japan’s. South

Korea had even

less exposure to

foreign markets

C H R I S G I L E S A N D
G E O R G E PA R K E R— LONDON
MA RT I N A R N O L D— FRANKFURT

The World Bank and the IMF said yes-
terday they had set aside “emergency
funding” for countries to fight the coro-
navirus as the OECD warned that the
outbreak could more than halve global
economicgrowththisyear.
The warning was issued as Boris John-
son prepared to set out Britain’s contin-
gency plans for tackling the virus. The
prime minister warned there could be
“a very significant expansion” of the
numberofcasesintheUK.
Rishi Sunak, the chancellor, will use
his Budget on March 11 to set out plans
to help businesses, public services and
individuals cope with the spread of the
virus, including offering stricken com-
paniesmoretimetopaytheirtaxbills.
As the number of cases in the UK rose
to 39, Mr Johnson and ministers signed
off a series of “calibrated responses” to
the possible spread of the virus; closure
of schools and sporting events and even
thesealing-offoftownsareonthetable.
Mark Carney, Bank of England gover-
nor, will set out monetary policy resp-
onses — both national and international
—whenhefacesMPs’questionstoday.
In a joint statement, the IMF and
World Bank said they had prepared
their emergency lending facilities so
that no country or health system should
beshortoffundstofightthedisease.
The bleak forecast from the OECD
group of wealthy nations, which would
constitute a global recession, has led to
promises of action from central banks

and other international institutions

seekingtolimittheeconomicdamage.

Finance ministers from the G7 group

of large economies are also set to hold a

conference call today to discuss the eco-

nomicimpactandpolicyresponses.

The OECD lowered its central growth

forecast from 2.9 per cent to 2.4 per cent

but said a “longer lasting and more

intensive coronavirus outbreak” could

slashgrowthto1.5percentin2020.

The Bank of Japan said it would “pro-

vide ample liquidity and ensure stabil-

ity in financial markets”, while the BoE

said it was working with international

partners “to ensure all necessary steps

aretakentoprotectfinancialandmone-

tary stability”. Two representatives of

the European Central Bank said they

stoodreadytorespond.

Data released around the world yes-

terday contained warning signs that

coronavirus was hitting economic num-

bers as factories, shops and leisure facil-

ities closed. Manufacturing activity suf-

fered the steepest contraction in more

thanadecade,withtheJPMorganGlobal

Manufacturing PMI falling to 47.2 in

February, down from 50.4 in January

anditslowestsinceMay2009.

In the US, the manufacturing report

from the Institute for Supply Manage-

ment sent a warning that “coronavirus

iswreakinghavoc”.

Report & Analysispage 7

Editorial Commentpage 10

Lexpage 12

Reports & Tail Riskpage 13

Banks preparepage 23

Markets Insightpage 24

OECD warns

virus threatens

to cut global

growth in half

3 No 10 signs off contingency plans

3 Sunak tailors Budget to help cope

UK’s uncivil service

Johnson’s attack dogs have gone

too far— ROBERT SHRIMSLEY, PAGE 11

Out of America

European banks’ humbling retreat

from Wall Street— BIG READ, PAGE 9

Boomers v Gen Z

The 2020 election is also a vote on

US demographics— NOTEBOOK, PAGE 10

A N D R E W E D G E C L I F F E- J O H N S O N

NEW YORK

Jack Welch, who transformed

General Electricinto the most

valuable US company during

20 years at the helm of the

industrial conglomerate, has

died at the age of 84.

As chairman and chief execu-

tive from 1981 to 2001, Welch

came to define a style of man-

agement that was featured on

countless magazine covers and

made him a best-selling author

of leadership books. Yet his leg-

acy at GE became clouded by a

broader shift in corporate cult-

ureawayfromtheshareholders-

firstethosheembodied.

“Jack was larger than life and

the heart of GE for half a cen-

tury. He reshaped the face of

our company and the business

world,” saidLarry Culp, GE’s

chiefexecutive.

Welch earned a reputation

for producing predictable earn-

ings growth and dividends for

GE’s investors as he reshaped

the company through cost-

cutting, dealmaking, borrow-

ing and the rigorous training of

a generation of managers. He

tookaruthlessapproachtocut-

tingoverheads,earninghimthe

nickname “Neutron Jack” as he

fired the lowest-performing

10percentofstaffeachyear.

Plaudits came in yesterday

from across the business and

political world for an executive

dubbed “the manager of the

century”byFortunein1999.

Obituarypage 16

Jack WelchGE chief and emblem of

imperious corporate leadership dies

Michael O’Neill/Corbis

MARCH 3 2020 Section:FrontBack Time: 2/3/2020 - 20: 16 User: simon.roberts Page Name: 1FRONT, Part,Page,Edition: LON, 1 , 1