Investors pull $15bn from hedge funds, record global temperatures and a well-timed bucket of chicken

Hedge funds have suffered their worst quarter in seven years after more than $15bn was pulled out by investors starting to fight back against the high fees charged across the industry.

The amount invested in hedge funds fell to $2.86tn in the first three months of the year, marking the first time since 2009 that the sector has faced two consecutive quarters of net outflows, according to data from Hedge Fund Research. (FT)

In the news

The Mitsubishi affair: what you need to know The carmaker has admitted manipulating fuel economy tests in Japan, in a development that leaves another dent in the image of the global motor industry. (FT)

McDonald’s hit by French tax bill McDonald’s France has been sent a bill for alleged unpaid taxes as part of a crackdown by French authorities on multinational companies that shift their profits abroad. McDonald’s France declined to comment on reports of the bill, which some media reports have suggested could be as high as €300m — including €100m in fines. (FT)

China’s air pollution drifts inland Rich coastal cities have been cracking down on air pollution for the past three years, setting caps on coal use and closing down nearby coal-fired power plants. But central and western provinces have seen an increase in coal-plant building“specifically because their air pollution and emissions regulations are more lax”, according to Greenpeace. (FT)

KFC Chinese new year bucket drives Yum sales higher Shares in the company behind KFC, Pizza Hut and Taco Bell rose nearly 4 per cent in extended trading after Yum Brands reported a 6 per cent rise in first-quarter same-store sales at its China division, which followed a 12 per cent jump at KFC China attributed to a Chinese new year bucket promotion. (FT)

2016 already shows record global temperatures The mild winter, the early spring — it’s not just you. The year is off to a record-breaking start for global temperatures — it has been the hottest year since records began in the 1880s, with January, February and March each passing records set in 2015. March was also the 11th consecutive month to set a record high for temperatures. (NYT)

Silver surges to best performing commodity Silver has now outpaced gold in terms of gains as the metal has rallied 14 per cent in 11 days to $17.05 a troy ounce. Unlike gold, which is mostly used in jewellery, more than half of silver’s use is in industrial applications such as electronics and in cars. The metal’s price could therefore benefit if the global economy improves. (FT)

It's a big day for

Eurozone rates The European Central Bank will announce its interest rate decision. The bank’s independence will be the centre of attention when its governing council meets after a storm of criticism from Germany. (FT)

US-UK relations President Barack Obama arrives in London for meetings amid pushback from Leave campaigners wary of his anti-Brexit stance. (FT)

Food for thought

Why Trump is the natural choice for China The FT’s Jamil Anderlini argues that even if, “as looks increasingly likely, Mr Trump fails to be elected leader of the free world, Trumpist isolationism has had an impact on Washington’s strategic thinking. Thanks to his influence, the chances of a partial American retreat in the region have already increased — to Beijing’s great advantage.” (FT)

One Hong Kong firm is upending Canada’s ginseng industry Hang Fat Ginseng was once a poster child for the new global economy — where North American family farms benefited from free-trade access to China’s burgeoning consumer market, brokered through one of the world’s financial centres. Now it has become a cautionary tale of overreliance, corporate hubris and weak financial regulation. (Bloomberg)

Google’s crafty Android tactics John Gapper argues that the search company is “Microsoft light”. “The way that it has exerted influence over how mobile phones run on Android is subtler and more calculated than Microsoft’s brute force approach to broadening its desktop monopoly in the early 2000s. While Microsoft insisted on its right to repel all competitors by packing what it felt like into Windows, Google has left open a degree of choice.” (FT)

Know your rights when your flight is delayed The FT’s Michael Skapinker on the laws governing how you can claw back cash ​or vouchers from an unwilling airline. (FT)

Video of the day

Investors want to be shown the money On a calm day for world markets, John Authers examines investors’ continuing enthusiasm for dividends. (FT)