Financial_Times_UK 28Jan2020

World Markets

STOCK MARKETS

Jan 27 prev %chg

S&P 500 3249.92 3295.47 -1.

Nasdaq Composite 9157.36 9314.91 -1.

Dow Jones Ind 28579.34 28989.73 -1.

FTSEurofirst 300 1619.00 1656.50 -2.

Euro Stoxx 50 3679.37 3779.16 -2.

FTSE 100 7412.05 7585.98 -2.

FTSE All-Share 4118.99 4213.14 -2.

CAC 40 5863.02 6024.25 -2.

Xetra Dax 13204.77 13576.68 -2.

Nikkei 23343.51 23827.18 -2.

Hang Seng 27949.64 27909.12 0.

MSCI World $ 2395.31 2406.14 -0.

MSCI EM $ 1119.39 1122.19 -0.

MSCI ACWI $ 573.29 575.74 -0.

CURRENCIES

Jan 27 prev

$ per € 1.101 1.

$ per £ 1.306 1.

£ per € 0.844 0.

¥ per $ 108.905 109.

¥ per £ 142.181 143.

SFr per € 1.068 1.

€ per $ 0.908 0.

Jan 27 prev

£ per $ 0.766 0.

€ per £ 1.186 1.

¥ per € 119.932 120.

£ index 80.691 80.

SFr per £ 1.266 1.

COMMODITIES

Jan 27 prev %chg

Oil WTI $ 52.60 54.19 -2.

Oil Brent $ 58.83 60.69 -3.

Gold $ 1564.30 1562.90 0.

INTEREST RATES

price yield chg

US Gov 10 yr 1.60 -0.

UK Gov 10 yr 0.53 -0.

Ger Gov 10 yr -0.39 -0.

Jpn Gov 10 yr -0.05 -0.

US Gov 30 yr 112.93 2.06 -0.

Ger Gov 2 yr 105.83 -0.63 -0.

price prev chg

Fed Funds Eff 1.55 1.55 0.

US 3m Bills 1.54 1.55 -0.

Euro Libor 3m -0.42 -0.42 0.

UK 3m 0.69 0.70 -0.

Prices are latest for edition Data provided by Morningstar

D O N W E I N L A N D— BEIJING

H U D S O N LO C K E T T— HONG KONG

J O E R E N N I S O N A N D P H I L I P G E O R G I A D I S

LONDON

Global equity markets and oil prices

fell sharply yesterday as the fast-

spreading coronavirus hit sectors from

travel to manufacturing amid warnings

that the disease would hit China’s eco-

nomic growth.

In the US the S&P 500 index was down

1.4 per cent in afternoon trading while

the UK’s FTSE 100 and European com-

posite Stoxx 600 both closed down 2.

per cent. Oil dropped below $60 a barrel

for the first time this year. Markets in

China and Hong Kong were shut for the

lunarnewyear.

Investors are braced for a blow to

first-quarter domestic growth as the

virus weighs on consumer spending and

travel during the annual holiday, which

the Chinese government extended until

nextweekinanefforttocontaintheout-

break. The number of people who have

diedincreasedto81with2,844infected.

The threat to Chinese manufacturing

was underlined when carmakers

including Japan’sNissan nd Frencha

groupsPSA nda Renault esterday saidy

theywouldpullforeignstafffromplants

inpartsofChinahitbythevirus.

The manufacturing hub of Suzhou —

home to factories owned by companies

including iPhone contractorFoxconn—

haspostponedthereturntoworkofmil-

lionsofmigrantlabourersforaweek.

Lee Hardman, a currency analyst at

Japanese bank MUFG, said that the

virus marked “a setback for the global

economy and manufacturing sector,

which had been showing tentative signs

ofimprovementinrecentmonths”.

ZhouXianwang,themayorofWuhan,

where the virus was first discovered,

admitted on state televisionthat local

authorities had initially covered up the

disease by “not making a timely disclo-

sure”.

But he said that Beijing was in part

responsibleforthecover-up.

Foreign countries were scrambling to

helptheircitizensinWuhan.TheIndian

government said that it was taking steps

to“prepareforpossibleevacuation”and

Germany’s foreign minister said: “We

are considering a possible evacuation of

allGermanswhowanttoleave.”

The virus continued to spread around

the world, with the US and Canada con-

firming cases alongside countries from

AustraliatoSriLanka.

China’s ailing economy age 8p

Anjana Ahuja age 13p

Lex age 14p

Sharp shockpage 15

Fears rise of global economic blow as

China’s coronavirus death toll hits 81

The recent foreign policies of Turkey’s

President Recep Tayyip Erdogan are

riling European and Arab leaders alike.

Since the failed 2016 coup against him

Mr Erdogan has launched incursions

into Syria, taken sides in an Arab Gulf

dispute, blocked European oil groups

from drilling for gas, defied Nato allies

by buying a Moscow defence system

and waded into Libya’s dispute. But his

muscle-flexing is putting Turkey’s US

and EU economic relationships at risk.

AnalysisiPAGE 6

Turkey assertiveness

angers EU and Arab allies

TUESDAY28 JANUARY 2020

Briefing

i irbus near to settling bribery probeA

AerospacegroupAirbusisonthebrinkofsettlinga

briberyprobewithregulatorsintheUK,Franceand

theUS,inamovethatcouldseeitpaymorethan

€3bninpenalties,analystspredict.— PAGE 15

i ohnson pressed over Huawei 5G roleJ

PoliticiansintheUSandLondonratchetedupthe

pressureonBorisJohnsontostopChina’sHuawei

havingaroleinsupplyingkitfortheUK’sfifth-

generationmobilephonenetwork.— PAGE 2

i ortgage deals may hurt Flybe rescueM

Efforts to provide a state loan

on commercial terms for Flybe

could be complicated because

the airline mortgaged off the

majority of its last assets to its

shareholders last year.— PAGE 19

i renfell cladding risks ‘were known’G

ArconicandCelotex,suppliersofkeycomponents

implicatedintheGrenfelldisaster,wereaccusedof

knowinglyallowingtheinstallationofdangerous

productsduringthetower’srefurbishment.— PAGE 2

i upport grows to hear Bolton testifyS

JohnBolton’srevelationshaveincreasedthechance

thatRepublicanscouldjoincallstohearfrommore

impeachmentwitnesses—asignificantsetbackfor

theWhiteHouse.— PAGE 4; EDITORIAL COMMENT, PAGE 12

i migo shares dive 29% after sale moveA

SubprimelenderAmigohasputitselfupforsale,

sendingitssharescrashingandmakingitLondon’s

worst-performingbigIPOinmorethanthree

years.— PAGE 15; LOMBARD & ANALYSIS, PAGE 19

i ibyan ceasefire ends amid arms caveatL

RenewedweekendfightinginLibyaendedafragile

two-weekceasefireastheUNwarnedthatnew

weaponsfrominternationalbackersofthetwo

warringsideshadbeenenteringthecountry.— PAGE 6

Datawatch

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

© THE FINANCIAL TIMES LTD 2020

No: 40,308★

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For the latest news go to

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The most loyal

workers across

advanced nations

are in Italy, where

an average worker

spends more than

12 years with the

same employer.

South Koreans

switch more often,

on average

spending less than

half that time with

one employer.

Sticking around

Average time spent with

one employer (in years, )

Sources: OECD; Statista

Italy

France

Germany

Spain

Sweden

UK

Brazil

South Korea

    

NEWS PROVIDER OF THE YEAR

G E O R G E PA R K E R A N D L AU R A H U G H E S
LONDON
A RT H U R B E E S L E Y —DUBLIN

Leo Varadkar, Ireland’s prime minister,
has warned of a fish for financial
services Brexit clash by suggesting that
the UK could lose access to European
markets unless it opens its coastal
waterstoEUboats.
Britain has long suspected that Brus-
selswoulddemandcontinuedEUaccess
to the UK’s fish-rich waters as a condi-
tion of atrade deal, with an explicit link
being drawn to an agreement on finan-
cialservices.
But Mr Varadkar told the BBC: “The
UK has a lot of waters, and a lot of fish is
taken out of your waters by boats from
other countries. Bear in mind that
70 per cent of the fish you sell, you sell

into Europe. That’s an area where you

are in a strong position. An area where

you’re in a very weak position is one of

the most valuable parts of the British

economy—financialservices.

“You may have to make concessions

in areas like fishing in order to get con-

cessions from us in areas like financial

services.”

The possible collision on fish and

finance emergedin last year’s political

declaration between Britain and the EU

on future relations, which stated that

agreements on both areas were a prior-

ityandshouldbesettledbyJuly.

Downing Street saidit stood by the

declaration but insisted that the time-

table for talks was still to be agreed. The

UK hopes to stop Brussels using the

sequencing of trade talks to the EU’s

advantage. Boris Johnson’s spokesman

said that after Brexit the UK would take

control of its coastal waters but did not

exclude the prospect that EU fishermen

could continue to operate in them as

partofanagreement.

Britain’s financial services sector

hopes to keepa close relationship ithw

the EU but it will not enjoy the same

access as under the bloc’s single market,

which includes a so-called passporting

regime that allows banks and other

financial groups authorised in one EU

memberstatetotradefreelyinanother.

The UK and EU are likely to forge

post-Brexit market access rules for

the industry based on the concept of

“equivalence”. This would give Britain

the opportunity to develop a discrete

regulatory regime for financial services

and the ability to diverge from EU rules.

Britain has, meanwhile,refused to offer

Brussels any promises on access to UK

coastal waters, where more than

700,000 tonnes of fish and shellfish are

caughteachyearbyEUboats.

After December 2020, Britain will

withdrawfromtheEU’scommonfisher-

ies policy, which has dictated where UK

boats can operate and how much they

cancatch,fordecades.

British officials believe the adoption

of a Norway-style model, which would

involve annual negotiations with the EU

on quota rights and access, would allow

theUKtocontrolitscoastalwaters.Brit-

ain would also seek a larger quota than

underthecommonfisheriespolicy.

Sunderland preparespage 3

Robert Shrimsley age 13p

UK and EU face post-Brexit clash

over fish and financial services

3 Varadkar in conditional deal warning 3 Coastal waters trade-off key for markets access

Leo Varadkar

said: ‘You may

have to make

concessions in

areas like

fishing in order

to get

concessions

from us’

Day of solemn

remembrance

for Auschwitz

Igor Malicki, a Holocaust survivor,
attends a ceremony at Auschwitz, the
former Nazi concentration camp in
Poland,markingthe75thanniversaryof
itsliberationyesterday.
Some 200survivors shared their
accounts of what they endured at the
camp, where more than 1.1m people,
mostly Jews, perished in the gas
chambers or from starvation, cold and
disease.
The presidents of Israel and Poland
called for greater efforts to combat a
global resurgence of anti-Semitism.
Israel’s Reuven Rivlin said it was every-
one’s duty to fight “sick evils” that
threatenthefoundationsofdemocracy.
Report age 4p
Editorial Comment age 12p
Aleksandra Szmigiel/Reuters

Goldman’s trade-off

Will the investment bank’s consumer

gamble pay off?— BIG READ, PAGE 11

People politics

Depopulation is eastern Europe’s

biggest problem— IVAN KRASTEV, PAGE 13

Roll of the dice

Croupier schools gamble on Japan

approving casinos— NOTEBOOK, PAGE 12

JANUARY 28 2020 Section:FrontBack Time: 27/1/2020- 20:30 User:nick.miller Page Name:1FRONT, Part,Page,Edition:LON, 1, 1