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Jason Gay on The Look of Love Why Cycling Paris’s Musée du Luxembourg focuses on Beats Football Fragonard’s idealized, romantic world ARTS | A9 THE BACK PAGE | A12

| TUESDAY, SEPTEMBER 29, 2015 ~ VOL. XL NO. 21 WSJ.com ASIA EDITION

DJIA 16089.22 g 1.38% S&P 500 1896.75 g 1.79% NIKKEI 17645.11 g 1.32% STOXX 600 341.57 g 2.21% OIL 44.65 g 2.30% GOLD 1133.20 g 1.12% EURO 1.1232 À 0.29% YEN ¥119.81 g 0.65% What’s In Hong Kong, Umbrellas Return to Mark an Anniversary News Unveils Plan Business&Finance To Split luminum maker Al- Acoa, hurt by depressed prices, said it plans to split BY JOHN. W. MILLER into two publicly traded AND CHELSEY DULANEY companies next year. A1 Alcoa Inc. said Monday that Glencore shares hit a it plans to split into two pub- new low on concerns that licly traded companies next persistently low commodity year, a move that would iso- prices will cripple its debt- late the aluminum maker’s laden balance sheet. A1 more profitable downstream Comcast plans to spend parts units from its raw-alumi- $1.5 billion for control of a num operations. theme park in Japan. B1 The split is a dramatic cor- porate consequence of the Shell said it would end commodity bust driven by a its drilling program in the slowdown in Chinese eco- Alaskan Arctic after a dis- nomic growth. As it consumes appointing summer. B1 less, China has found itself Energy Transfer will ac- stuck with a glut of metals, es- quire Williams Cos. in a pecially aluminum and steel, $32.6 billion deal that will which it has been shipping create a U.S.-wide network abroad, causing trade frictions

of natural-gas pipelines. B1 PHILIPPE LOPEZ/AGENCE FRANCE-PRESSE/GETTY IMAGES and depressing markets. A YEAR LATER: Demonstrators gathered at Hong Kong’s government headquarters Monday, one year after protesters occupied roads The new raw business, bat- The clamor for corpo- to demand open elections. Crowds were small compared with last year, when thousands wielded umbrellas against police tear gas. tered by falling aluminum rate bonds in China is en- prices, will include Alcoa’s abling some companies to bauxite-mining, alumina-refin- issue debt at the lowest ing and aluminum-production yields in five years. A1 businesses. Alcoa said the Stock markets fell as company, which will retain the fresh evidence that China’s China’s Hot Bond Market Alcoa name, would have had economy is slowing added revenue of $13.2 billion in the to fears about the outlook year ended June 30. for global growth. B11 Demand for corporate tested in front of Bengbu city market in less than a month. summer. It’s overheated and The downstream company, hall, saying their new homes Heavy investor demand al- full of bubbles,” said Wang which Alcoa for now is calling Apple said it has sold bonds enables some were smaller than advertised, lowed RiseSun to sell the Jing, deputy general manager its “value-add company,” will more than 13 million of its that basements leaked and el- bonds at a yield of 5.3%. at the fixed-income depart- include its global rolled-prod- new iPhones. B3 firms to issue debt at evators flooded. The clamor for corporate ment of China Securities ucts, engineered-products and lowest yields in 5 years That didn’t stop RiseSun bonds in China is enabling Credit Investment Co., a fi- solutions, and transportation- World-Wide Real Estate Development Co., companies like RiseSun to is- nancial-services firm in Shen- and-construction businesses. BY SHEN HONG the heavily indebted company sue debt at the lowest yields zhen. The various parts of the that built the apartments, in five years. Property developers ike company “now each have the Obama said the U.S. is SHANGHAI—On July 30, from selling 4.1 billion yuan “China’s corporate-bond RiseSun have benefited as in- strength and scale to each prepared to work with hundreds of owners of apart- ($643 million) worth of five- market is looking more and vestors flocked to China’s big stand on their own,” Alcoa Russia and Iran to find a ments built by a midsize Chi- year bonds that day, the sec- more like the red-hot stock domestic corporate-bond Chief Executive Klaus Kleinfeld resolution to the conflict nese property developer pro- ond time it tapped the bond market before its crash in the Please see BONDS page A2 Please see ALCOA page A2 in Syria, but he couldn’t accept a return to pre-civil war rule by Assad. A3 Shell Comes Up Dry in the Arctic Iraq said it would be INVESTORS PRIZE open to Russian reconnais- sance flights in its air- space to spy on Islamic State militants. A3 FACE TIME WITH BOSSES China will establish a 10-year $1 billion “peace Brokers, analysts arrange special access to top executives for clients and development” fund to support the work of the BY SERENA NG That hunch was confirmed in July. U.N., President Xi said. A4 AND ANTON TROIANOVSKI P&G says it is careful not to reveal market- sensitive information to investors and analysts Taliban militants took Procter & Gamble Co. Chief Executive A.G. who get special access to the company. For the control of most of the Af- Lafley speaks on just one earnings conference past 15 years, selective disclosure by compa- ghan city of Kunduz. A4 call a year, down from his previous practice of nies has been illegal under U.S. securities rules. Trickles of salt water every quarter. The company says that helps Yet the same rules explicitly allow private mayflowonMars,NASA- him stay focused on pulling P&G out of a meetings like those by P&G. funded scientists said. A7 growth slump. The result is a booming back channel

DANIELLA BECCARIA/ASSOCIATED PRESS But Mr. Lafley still meets regularly with in- through which facts and body language flow Pope Francis said a fun- PULLING OUT: has retreated from a controversial vestors in private. In March, Mr. Lafley’s com- from public companies to handpicked recipi- damental right to consci- Arctic drilling campaign that was questioned by investors, ments during a string of conversations with in- ents. Participants say they’ve detected hints entious objection extends environmental groups and religious and political figures. B1 vestors in New York gave a Wall Street analyst about sales results and takeover leanings. More to public officials. A7 who was present the strong impression that he common are subtle shifts in emphasis or tone Nepal curtailed fuel use would step aside as CEO sooner than expected. Please see ACCESS page A6 following weeks of pro- tests against the country’s new constitution. A4 Glencore Soviet Impersonators Battle to Move The Catalonia election gave separatists control of Shares Hit From Proletariat to Bourgeoisie parliament but left them iii short of a clear mandate. A3 New Low on Moscow’s Bolshevik look-alikes fight Debt Worry for tourist dollars; ‘Drunk Lenin’ The Journal’s news digest, updated all day for your phone BY SCOTT PATTERSON BY JAMES MARSON anywhere from 200 rubles AND ALEX MACDONALD (around $3) to 1,000 rubles, Download What’s News MOSCOW—In the shadow depending on the visitor’s ne- on the App Store LONDON—Investors of the Kremlin, Joseph Stalin gotiating skills. pounded shares of Glencore and Vladimir Lenin clashed The dispute between the PLC on Monday, sending the over how to divvy up the two leaders of the global pro- CONTENTS Opinion...... A10-11 giant miner and trader down spoils of their little letariat late June Arts...... A9 Personal Journal.. A8 Business News.. B1-6 Sports...... A12 nearly 30% to a new all-time enterprise. ended in a scuffle, Crossword...... A12 Technology...... B3 low amid fresh concerns that Lenin felt he according to city of- Heard on Street. B12 U.S. News...... A5,A7 persistently low commodity wasn’t getting a fair ficials and other im- Markets Digest.. B10 Weather...... A12 prices will cripple its debt- share, while Stalin’s personators, expos- Money & Inv.... B7-12 World News...... A2-4 laden balance sheet. apparent grievance ing the seamier side China: RMB28.00; Hong Kong: HK$23.00; The Swiss company’s stock was his erstwhile of capitalism Indonesia: Rp25,000 (incl PPN); Japan: Yen620 (incl JCT); Korea: Won4,000; has collapsed in recent months comrade’s betrayal around Moscow’s Malaysia: RM7.50; Singapore: S$5.00 (incl GST) despite a series of moves de- in forming a new al- main tourist site. KDN PP 9315/10/2012 (031275); MCI (P) NO. 076/08/2015; SK. MENPEN R.I. NO: 01/ signed to bolster investor con- liance—with an- Lenin imperson- SK/MENPEN/SCJJ/1998 TGL. 4 SEPT 1998 fidence and ease its debt bur- other Stalin. ator Igor Gorbunov den. Adozenorso said the Stalin look- The company’s stock closed impersonators— Sergei Solovyov alike, Latif Valiyev, at 69 pence on the London who specialize in followed him into Stock Exchange—down from duping dictators—work the an underpass near Red Square 97 pence in the morning and crowds near Red Square, jos- and jabbed him in the back down 87% from its splashy ini- tling for cash from tourists’ with an umbrella. Mr. Gor- s Copyright 2015 Dow Jones & tial public offering at 530 wallets. A photo with Ivan the bunov went to a first-aid sta- Company. All Rights Reserved Please see PLUNGE page A2 Terrible, for instance, can cost Please see SOVIET page A6 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com FINANCE WATCH B8 | MARKETS DIGEST B10 | HEARD ON THE STREET B12

New Rules for Junk-Bond Slump Commodities Shift threatens merger boom BONDS | B8 MARKETS | B9

© 2015 Dow Jones & Company. All Rights Reserved. . Tuesday, September 29, 2015 | B7

As of 12 p.m. ET EUR/GBP 0.7390 À 0.18% YEN ¥119.81 g 0.65% GOLD 1133.20 g 1.12% OIL 44.65 g 2.30% 3 MONTH LIBOR 0.32660 10-YR TREAS À 19/32 yield 2.102% Australians Look Overseas

With local economy suddenly look more attractive. ties with the current uncer- aged pension plans, which typi- And if the Australian dollar tainty about the Australian cally promise diversification. and currency flagging, keeps falling as it has over the economy,” said Tim Mackay, a MySuper funds—the default investors are starting past year, that would add an financial planner at Quantum pension option for many Aus- exchange-rate windfall to over- Financial Services in Sydney. tralians—allocate just under a to buy stocks abroad seas returns. “You don’t just get better re- third of their portfolio to inter- Australia’s economy ex- turns internationally, you also national shares. BY VERA SPROTHEN panded just 0.2% in the second benefit from the exchange A growing number of people, quarter from the first, the rate.” though, are choosing to manage SYDNEY—Australia has one weakest in four years. China’s In Australia, almost all em- their own retirement savings, of the largest pools of retire- slowing economy has trans- ployees are covered by the partly out of disillusionment ment savings globally, along lated into less construction of country’s compulsory contribu- with traditional fund managers with some of the world’s most skyscrapers, bridges and rail- tion system, which, at two tril- and the relatively high costs of stubbornly parochial investors. ways there, hurting demand for lion Australian dollars (US$1.4 mutual funds. These self-man- But as the resource-depen- raw materials, such as iron ore, trillion), has become the aged investors—known locally dent economy faces a possible that Australia exports. world’s fourth-largest pool of as “selfies”—control roughly

recession after 24 years of “We’d look silly if we didn’t retirement savings. Most peo- A$600 billion, or 30%, of the ADAM YIP/THE AUSTRALIAN avoiding one, overseas shares move into international equi- ple put their money into man- Please see GLOBAL page B11 Paul and Marlene Denton increased their holding of global stocks. Swiss Probe Metals Trading BY JOHN LETZING World sugar futures, AND ALISTAIR MACDONALD continuous front-month contract 40 cents a pound ZURICH—A Swiss regulator has opened an investigation into precious-metals trading at a group of large banks, mark- 30 Friday 11.74 cents ing the latest in a line of probes into the rigging of key financial markets that have in- 20 creasingly spread into the multibillion-dollar trade in metals. 10 Switzerland’s competition commission, known by its Ger- man-language acronym WEKO, 0 on Monday said it is investi- ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 gating potential manipulation of prices in the trading of Source: CQG gold, silver and other precious metals at UBS Group AG, Ju-

ERALDO PERES/ASSOCIATED PRESS lius Baer Group AG, Deutsche The problems of Brazil’s sugar-cane industry illustrate the woes afflicting commodities-reliant emerging markets. Above, a worker collects sugar cane at a farm in Brazil. Bank AG, HSBC Holdings PLC, Barclays PLC, Morgan Stan- ley and Japanese trading house Mitsui &Co. Brazil’s Sugar Cane: An Emerging Debacle WEKO said it suspects that the banks have manipulated BY JULIE WERNAU dio Miori said it is likely to production capacity of many zil, the world’s largest pro- thing in sight. It was happy the so-called spread on pre- seek bankruptcy protection, commodities sent raw-materi- ducer of the sweetener, were days. cious metals, or the difference Virgolino de Oliveira SA is joining the roughly one-fifth als prices spiraling lower over making the same bet: that a “That cycle is now, we be- between bids and asking trodding what has become a of Brazil’s sugar-cane mills the past several years. rising global middle class lieve, turning.” prices. well-worn path for emerging- that already are requesting re- That led to declines in the would keep prices of food, es- Since the start of 2010, in- The probe isn’t the first into market companies that built lief from unpaid bills and debt currencies of countries reliant pecially sugar, aloft. vestors plowed more than $1 commodity markets, which up up capacity to meet China’s payments. on commodity exports. Now They were wrong: Sugar trillion into emerging-market until several years ago were a demand for commodities only “They stopped paying companies are struggling to prices hit a seven-year low in bonds, according to the Insti- key revenue generator for to watch it sugar-cane farmers,” Mr. Miori pay back the debt they issued August and now hover around tute of International Finance. banks. Last month, the Euro- COMMODITIES crumble. said, referring to Virgolino de to build up capacity when 12 cents a pound. Ten percent of that went to pean Union’s competition The Bra- Oliveira. “They stopped paying times were good. “It wasn’t just the sugar Brazil. watchdog said it is investigat- zilian sugar banks. They are only one Virgolino de Oliveira sold rush in Brazil,” said Rashique But inflows into emerging- ing alleged “anticompetitive producer missed a bond pay- notch from default.” $300 million in dollar-denomi- Rahman, head of emerging- market bonds slowed sharply behavior” in precious-metals ment in February and hasn’t The woes of Brazil’s sugar- nated bonds in 2012 to expand market debt at Invesco Ltd., this year, to a net $53.8 billion spot trading. In February, The been able to renegotiate the cane industry offer a stark il- its operations, anticipating which has $776.4 billion under in the first eight months of Wall Street Journal reported terms of its debt, according to lustration of the problems that the price of raw sugar at management. “It was a broad- the year, according to IIF. That that the U.S. Justice Depart- Fitch Ratings. The company confronting emerging markets. the time—25 cents a pound— based bull run for emerging is down 49% from the same ment’s antitrust division is couldn’t be reached for com- The combination of slower would remain at that level. markets. You had low interest period a year earlier. scrutinizing the price-setting ment, but Fitch analyst Clau- growth in China and excess Other sugar executives in Bra- rates, China was buying every- Please see SUGAR page B8 Please see METALS page B8 Watching for the Death Cross LegendaryInvestorDiesat71 BY KEVIN KINGSBURY correction territory—a decline death cross to happen. It oc- BY MIGUEL BUSTILLO plications of a rare brain dis- He began working in 1970 of 10% or more from a peak— curred on Aug. 11, and after AND GREGORY ZUCKERMAN ease. He was 71 years old. for the Bass family, which had Technical indicators in the that August, in the wake of the Dow had dropped a mere Born to a middle-class fam- inherited an oil fortune from market keep stacking up Standard & Poor’s downgrad- 5% from its record high. For Long before Wall Street ily, Mr. Rainwater parlayed a Texas wildcatter Sid Williams against investors. But when ing of U.S. government debt. the Dow, the death cross was littered with swaggering gift for mathematics and a Richardson, and helped them the Nasdaq Composite’s 50- While it took until the new proved to be a bad omen; the hedge-fund billionaires, Rich- gregarious personality into a to dramatically increase their day moving average falls be- year for the 50-day moving index tumbled into correction ard Rainwater earned a more than $2 billion fortune wealth over the next decade low its 200- averages of all three indexes territory 10 days later. Texas-size reputation as an as a financial adviser and and a half through a dizzying MONEYBEAT day average, to get back above their 200- For the S&P last month and investor with an eye on the wheeler-dealer whose under- succession of deals. creating a day averages, U.S. stocks fell for all three indexes in 2011, big score. lings went on to become chief Perhaps the most famous so-called only slightly after the death death crosses happened after He helped install Michael executives, governors and deal was the Bass family’s death cross pattern on the crosses happened. the measures had fallen by Eisner as Walt Disney Co. hedge-fund tycoons. rescue of then-struggling Dis- charts, it might not be such a double-digit percentages. chief execu- “He was a laid back guy ney in 1984 with a nearly bad omen for U.S. stocks. What investors need to dis- OBITUARY tive, steered who liked to invest but he $500 million investment to The Nasdaq looks likely to 5% cern is whether for the S&P— RICHARD George W. was not a fan of fancy dinners ward off a potential hostile fall into a death cross within and, especially, for the Nas- RAINWATER Bush to buy a or some of the other things takeover bid by financier Saul the next few days, becoming The amount the Dow dropped daq—death crosses are stake in Major that went with it,” his son, Steinberg. Mr. Rainwater the last major U.S. index to from its record high to fall into backward-looking and high- League Base- Todd, said on Sunday. “What helped handpick a new man- have this pattern occur. The a death cross in August light weakness that has al- ball’s Texas Rangers and he was best at is being a tal- agement team for Disney led 50-day moving averages of ready happened, or are a sign helped multiply the Bass fam- ent scout. He would find a by Mr. Eisner that brought the Dow Jones Industrial Av- of the pain that is still to ily fortune one-hundred-fold troubled business, find the the studio back to promi- erage and the S&P 500 fell be- The same may happen this come. If the indexes end up before building a billion-dol- best person to run it, the Mi- nence—and made the Bass low their 200-day averages go-round for at least two of more than edging marginally lar one of his own. chael Jordan of that industry, brothers billions. this summer and have re- the three. The S&P 500’s below last month’s lows, it is “My brother said, ‘Don’t be and inevitably that person “Richard was one of the mained there since. death cross last month didn’t liable to be the bears who win mediocre at anything; be re- would turn the business best deal guys who ever A death cross is considered happen until after markets the argument. markable at something,” Mr. around”. lived,” said David Bonderman, a bearish sign for the mar- tumbled on Aug. 24, when the Rainwater recalled in 2010 in A native of Fort Worth, Mr. who met Mr. Rainwater while kets, suggesting more pain low point, at least for now, MONEYBEAT a speech at Stanford Univer- Rainwater attended the Stan- working for Robert Bass and ahead. But if 2011 is any was reached in the current sity. ford Graduate School of Busi- later founded private-equity guidepost, U.S. stocks may not downturn. Read the Mr. Rainwater died on Sun- ness on scholarship, where he giant TPG. “He was always be in for too much downside. The outlier in all of this is continuously day morning at his home in met Sid Bass, who hired him confident and idiosyncratic, Four years ago, the death the Dow. Because it traded in WSJ updated look Fort Worth, Texas, according to serve as chief investment and generally was right.” crosses for the three major a narrow range for much of .COM inside the to the Rainwater Charitable adviser for the Bass brothers, Mr. Rainwater struck out on indexes didn’t happen until this year, the blue-chip index markets, free Foundation and his family. He who were also from Fort his own in the late 1980s, con- after they each had fallen into didn’t have to fall far for a online at wsj.com/moneybeat had been suffering from com- Worth. Please see MENTOR page B8 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B8 | Tuesday, September 29, 2015 THE WALL STREET JOURNAL. MONEY & INVESTING Buyers’ Junk-Bond Hunger Fades METALS Continuedfromthepriorpage BY MATT WIRZ Those bonds lost about 3% process for gold, silver, plati- AND LIZ HOFFMAN of their value within the first num and palladium in London, week of trading, according to while the Commodity Futures Investors are pulling back data from MarketAxess, Trading Commission has from the junk-bond market, in spooking some investors. opened a civil investigation. a shift that threatens to slow “We’re very happy with the Last year, Switzerland’s fi- the global mergers-and-acqui- performance we had in mar- nancial regulator Finma found sitions boom. ket,” said Frontier’s treasurer, that employees at UBS had “at Tepid demand forced Euro- John Gianukakis. Demand for least attempted” to manipu- pean cable company Altice NV the bonds was strong, he said, late precious-metals prices and U.S. chemical producer and their prices rose before and foreign-exchange rates Olin Corp. in recent days to falling after Moody’s Investors and forced the bank to hand reduce the size of bond sales Service cut the rating of back 134 million Swiss francs and boost interest payments. Sprint, signaling concerns that ($136.9 million) in related The concessions mark the affected other telecoms. profits. That year, the U.K.’s first significant slowdown fol- When J.P. Morgan an- financial regulator fined Bar- lowing a multiyear boom. U.S. nounced plans to sell bonds clays £26 million ($39.5 mil- issuance of high-yield bonds, for Altice and Olin, some buy- lion) for its role in irregulari- commonly called junk bonds, ers balked. ties around the fixing of a so far in 2015 has fallen 1.4% In the case of Altice, sev- daily gold-price benchmark. from a year ago, according to eral investors said they were Switzerland has had a his- Securities Industry and Fi- concerned about how the toric role in the trading, refin- nancial Markets Association company would support all ing and holding of precious data, known as Sifma. the debt raised. The com- metals such as gold. Any prolonged decline in bined company’s debt ini- Spokesmen for UBS, bond investors’ appetite could tially will be more than seven , HSBC and Bar- threaten a banner year for times its earnings before in- clays declined to comment, as corporate mergers fueled in terest, taxes, depreciation did a spokeswoman for Mor-

large part by cheap credit. A RICHARD DREW/ASSOCIATED PRESS and amortization, according gan Stanley. A spokesman for slowdown could also portend Altice sold fewer bonds than expected to fund its $10 billion purchase of Cablevision Systems. to Moody’s. Altice plans to Julius Baer said the bank is more trouble for U.S. stocks. lower that debt ratio by cut- “fully cooperating” with the The Dow Jones Industrial Av- pending acquisition of Dow terest than bonds but require pinch in the bond market ting costs, a person familiar probe. erage dropped 11% from its Chemical Co.’s chlorine-prod- borrowers to pledge collateral could leave those deals strug- with the matter said. A WEKO spokesman said if May peak through Friday. ucts unit. Earlier in the month, and agree to limits on spend- gling for financing. The pushback led Altice’s the regulator uncovers mis- Though the U.S. economy con- Olin was expected to sell $1.5 ing. Overall U.S. issuance of junk bankers to cut the amount of conduct, it would be able to tinues to expand, analysts billion of bonds, fund manag- Robust corporate-bond bonds has totaled $203.8 bil- bonds and boost the yield of fine the banks the equivalent closely watch credit markets ers and analysts said. markets helped fuel a boom of lion so far in 2015, according some, say investors. of up to 10% of their proceeds for signs of whether economic The annual interest rate on mergers and acquisitions this to data from Sifma. The 1.4% The high-yield-bond selloff in Switzerland resulting from weakness in China is spilling Olin’s 10-year bonds sold Fri- year, giving Wall Street banks decline that this represents has spread in recent weeks be- the alleged manipulation. over to the U.S. day was 10%, up from 7% ex- a boost as other businesses has put the market on track yond the debt of energy com- Scrutiny of big banks’ oper- “Until the recent volatility, pected earlier in the month, such as securities trading have for a second straight drop, al- panies hurt by weak oil prices ations in the physical com- there had been a fair amount according to S&P Capital IQ. struggled. Declining availabil- though it remains at a rela- to other industries that had modities markets comes on of confidence that the capital The steep increase in yield re- ity of financing could add to tively high figure historically. been deemed safer. the back of several high-pro- markets would be there,” said flects growing concerns that headwinds against stocks. Meanwhile, the yield of the “We’re surprised that sec- file investigations into the James Barresi, a financing slowing demand from China Companies have announced Barclays U.S. corporate high- tors that had performed bet- manipulation of financial lawyer at Squire Patton Boggs. could hit sales of chemical $3.2 trillion of M&A this year, yield index rose to 7.64% on ter, such as chemicals, are now benchmarks and the currency “It’s going to be difficult for makers. according to Dealogic, embold- Thursday—the highest since being adversely impacted,” market. Commodities traders traditional banks to make up The deals amount to a set- ened to merge by cheap debt 2012 during the European debt said Brad Rogoff, head of shift raw materials such as that shortfall.” back for J.P. Morgan Chase & and the long stock rally that crisis. The average yield has credit strategies at Barclays. oil, gold and copper around Altice on Friday sold $4.8 Co., the lead arranger of both. began after the financial crisis. jumped almost one percentage For instance, bonds issued by the world, taking advantage of billion of junk bonds to fund The bank this year has under- That puts 2015 on pace to ri- point since early August, re- Tronox Ltd., a producer of ti- price discrepancies between its $10 billion purchase of Ca- written junk-bond deals worth val 2007 as the biggest year flecting lower bond prices, as tanium dioxide, have declined different regions, and bolster blevision Systems Corp., ac- $25 billion, an 11% market ever for takeovers. Issuance of stock-market turmoil has 14% since Sept. 15. their trading book with bets cording to S&P Capital IQ LCD. share, according to Dealogic. junk bonds backing M&A deals spilled into bond trading. Some fund managers see a on commodities-related deriv- When the deal was shopped As junk-bond markets started hit a year-to-date record of Yield-hungry bond funds brighter side. “People are un- atives. The trading of gold has earlier this month, Altice ex- to weaken, J.P. Morgan kept $77 billion through Friday, ac- have continued to buy the bonds comfortable, and that creates a daily turnover of about $150 pected to sell $6.3 billion of up its pace in a bid to clear its cording to data from Dealogic. because low interest rates sup- opportunity,” said Andrew billion, making it the largest debt, investors said. A 10-year plate of M&A financings it had A souring of investors on press returns from safer forms Susser at Mackay Shields,a precious-metals market. bond was priced to yield committed to, investors said. junk bonds could limit the of debt. But the funds’ appetite bond-focused investment firm. Many banks have left com- 10.875%, compared with yields Shortfalls in the Altice and availability of financing for started to wane after Sept. 11, “You’ve got major companies modities markets or cut down as low as 9.75% that were sug- Olin bond sales likely will be deals that require a lot of bor- when J.P. Morgan sold $6.6 bil- that are likely not going to de- their presence there, including gested by bankers initially, ac- made up for with issuance of rowing. Banks have been un- lion of junk bonds to finance fault with 10%-plus coupons— Barclays, Deutsche Bank and cording to S&P Capital IQ. corporate loans with below- der pressure from federal reg- Frontier Communications that’s pretty attractive.” UBS, as well as Olin on Friday sold $1.2 bil- investment-grade credit rat- ulators to reduce their loans Corp.’s purchase of assets from —Mike Cherney Group AG and J.P. Morgan lion of bonds to pay for its ings. These can cost less in- to such companies, and a Inc. contributed to this article. Chase & Co. Banks have said they are refocusing resources on more profitable parts of ener are at their highest in at tend to be more diversified, their business, while analysts SUGAR Heading South least 35 years amid the rush to have larger parent companies say the sector has become Investors are pulling back from Brazil’s bond market amid an economic produce, according to the U.S. to keep them afloat and are more costly to operate in slowdown and a plunge in the currency. Department of Agriculture. close to ports, Fitch says. amid increased regulation and Continuedfromthepriorpage Sugar production in Brazil Still, the outlook for the in- other factors. As anxiety about emerging- External flows into Brazil How many Brazilian reais hit a record of 38.4 million dustry is grim. On average, —John Revill market growth deepened, in- bonds, monthly one U.S. dollar buys metric tons in 2010, double the sugar mills are carrying 27% contributed to this article. vestors began yanking money $15 billion 2.5 reais level of a decade earlier. In the more debt this year, in local- out of Brazilian bonds in June, next crop year beginning Oct. 1, currency terms, than last year with $5.9 billion flowing out in the country’s sugar output is per ton of sugar cane, accord- Finance the three months through Au- 10 3.0 3.97 reais pegged at 36 million tons, ac- ing to Rabobank. gust. cording to USDA estimates. And the depreciation of the Watch The prospect of higher U.S. Meanwhile, there are signs real versus the dollar since the interest rates this year, which 5 3.5 of flagging demand. China im- beginning of the year hasn’t Federal Reserve Chairwoman –$672.7 million ported 25% less sugar in Au- materially enhanced Brazilian Janet Yellen last week signaled gust than a year earlier, ac- exporters’ competitiveness, as likely, further dims the al- 0 4.0 cording to Price Futures Group. Fitch said. lure of risky and high-yielding “Brazil relied too much on In Sertãozinho, a town 200 FOREIGN EXCHANGE emerging-market debt. In Bra- Scale inverted to commodities,” said Michael miles from the city of São China and Georgia zil, political turbulence is add- –5 4.5 show weakening real McDougall, head of the Brazil Paulo and known as Brazil’s ing to the pressure on govern- JMAMJJAF JFMAMJJAS commodities desk at Société sugar capital, about 10% of Sign Swap Deal ment and corporate bonds as Sources: Institute of International Finance (flows); Générale in New York. “Now sugar-industry workers have China has signed a frame- well as on the currency. Earlier WSJ Market Data Group (forex) THE WALL STREET JOURNAL. you have the aftereffect.” lost their jobs in the past two work agreement for a currency- this month, Standard & Poor’s Some sugar mills in Brazil years, said Antonio Tonielo, swap deal with Georgia, the Chi- Ratings Services was the first sugar cane. Since the commod- is then converted into crystals, are thriving despite accelerat- whose company, Viralcool, nese central bank said Sunday. credit-ratings firm to cut Brazil ity boom of the 2000s began to which are then packed and ing inflation and high interest owns three sugar mills and The head of the People’s Bank to “junk.” sputter, 80 mills have closed sent to port. Ethanol, which is rates inside the country. has operations in Sertãozinho. of China, Zhou Xiaochuan, signed The Brazilian real has tum- out of 300, according to Unica, a widely used fuel in Brazil, is “This is a very big industry,” “Five years ago…we started the deal with his Georgian coun- bled 33% against the dollar the country’s sugar-cane indus- often manufactured at the said Andy Duff, head of the producing more sugar, and terpart in Tbilisi, the Georgian cap- this year, making it among the try group. An additional 10 are same plants. food and agribusiness research when you do that, what hap- ital, while attending a meeting of worst-performing emerging- expected to close this year, Insolvent mills are attempt- department at Rabobank Bra- pens?” he said. “You depress central-bank governors of Central market currencies. Unica says. ing to sell as much sugar as zil. “There is a tremendous the price, and we’re paying the Asia, the Black Sea region and the The epicenter of the carnage In these factories, sugar possible to stay afloat, traders amount of diversity in terms of price today for high produc- Balkan countries, according to a can be found in the South Cen- cane is shredded and then and producers say, adding to a business models, in terms of fi- tion.” statement on the PBOC website. tral region of Brazil, which pro- squeezed under high pressure glut that is driving down world nancial states.” —Jeffrey Lewis Both sides expressed willing- cesses 90% of the nation’s to extract cane juice. The juice prices. Stockpiles of the sweet- Mills that are faring better contributed to this article. ness to establish the swap ar- rangement to strengthen coop- eration on currency matters, came the CEO of the Colum- clear palsy, a rare brain dis- promote settlement in local cur- MENTOR bia/HCA hospital chain and is ease with no known cure, rency and enhance trade and in- now governor of Florida. became more pronounced and vestment, the PBOC said. “He believed in [young he lost his ability to speak —Pei Li Continuedfromthepriorpage people] and made them be- clearly. Doctors warned his tinuing his penchant for spot- lieve in themselves,” said Mr. friends and family that he PERTAMINA ting distressed assets and Lampert, who later made a would almost certainly die market quirks that made for fortune for investors buying from the disease. State-Owned Firm bold investment opportunities the debt of Kmart and steer- Undeterred, Mr. Rainwa- To Cut Dollar Buying through his private-equity ing the troubled retailer out ter’s family tackled the prob- PT Pertamina is seeking to firm, Rainwater Inc. His win- of bankruptcy. lem through an investment, halve its dollar purchases in spot ning moves included buying Mr. Rainwater’s unortho- creating the Tau Consortium, transactions by using trade fi- more than 15 million square dox personal style—he would a group of international sci- nancing from local and interna- feet of downtown Houston real often stand on his desk to entists, which is trying to un- tional banks to fund imports, the estate during a slump in the hammer home a point—made derstand and ultimately treat Indonesian state-owned oil and mid-1990s; many of the prop- an impression on his proté- degenerative brain diseases gas company said Monday. erties later sold for two or gés, as did his lack of pre- such as the one that struck Pertamina spokesperson Wi- three times his purchase price. tense. Mr. Bonderman re- Mr. Rainwater. anda Pusponegoro said the pol- In addition to mastering called how Mr. Rainwater The Tau Consortium has icy is aimed at “mitigating [ex- the art of the deal, Mr. Rain- once traveled to a city to cut spent a total of more than change rate] risks” aside from water became known for his a deal without packing a suit- $50 million trying to find a hedging part of its dollar needs.

extraordinary ability to spot case; the billionaire brought a MARK CRAMMER/THE INDEPENDENT-MAILsolution VIA AP to the disease, a cure “The rupiah’s exchange rate and cultivate young talent change of clothes in a paper Richard Rainwater, left, and his wife, banker Darla Moore that may also assist people against the dollar has been very during the 1980s and early bag. with a more common illness: dynamic recently, making the ru- 1990s. His Fort Worth offices “He couldn’t be bothered, ruptcy banker, in 1991. Petroleum, in 1996. Alzheimer’s disease, Todd piah undervalued,” Ms. Puspone- became a salon of sorts for he was a total character,” Mr. Ms. Moore became CEO of Mr. Rainwater had slowed Rainwater said Sunday. goro added. ambitious young financiers. Bonderman said. “It was all Rainwater Inc. in 1994 and his investment activity, play- “Just like my father in- Pertamina is the single larg- Among those he encour- about making lot of money brought a harder edge to ing golf and traveling with his vested in business, we went est dollar buyer in Indonesia’s aged was Edward S. Lampert, and having fun doing it.” some of the firm’s dealings wife, when he began experi- about assembling the top relatively thin foreign-exchange who began his ESL Invest- Mr. Rainwater, who had that generated controversy, encing falls and mood team possible to work on market, as the company imports ments Inc. hedge fund in the three children with his first notably when it forced oilman changes. He slowly withdrew this,” he said. “I do have faith crude oil, petroleum products office. Down the hall at the wife, Karen, married Darla T. Boone Pickens to leave the from public life as the symp- that ultimately, we will be and liquefied petroleum gas. time was Rick Scott, who be- Moore, a prominent bank- company he founded, Mesa toms of progressive supranu- able to make a difference.” —I Made Sentana For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Tuesday, September 29, 2015 | B9 MONEY & INVESTING Computers Advance in Forex Trading Banks scale back role of algorithms in currency trad- to U.S. and U.K. authorities. charged the benchmark rate Swapping Traders for Software Forecast ing was virtually nonexistent a More than 30 senior traders set at 4 p.m. London time each of humans after Algorithms are now used to execute a growing portion decade ago, GreySpark said. based mainly in London or day. The difference between $1.0 paying billions in of currency trades. Its growth has outstripped New York have been fired or the fix and the rates obtained that of trading by phone, and suspended as part of the in- by the traders was profit or Average daily volume, in trillions* rigging scandal trading on electronic plat- vestigation. loss for the bank. Voice: dealer–dealer, dealer–customer 0.8 forms that still require hu- Algorithms are now used to The currency probe found BY CHIARA ALBANESE Electronic platform mans to process orders. carry out roughly 90% of or- traders were colluding to push Algorithmic A year ago, algorithmic or- ders placed at the daily fix the benchmark rate up or down After paying billions in 0.6 ders placed by fund managers rate, compared with about 5% to benefit their own trades, by fines to settle allegations that Algorithmic: and other investors accounted before the investigation shed discussing confidential client traders tried to rig a key cur- $1.51 billion for no more than 10%-15% of light on traders’ misbehavior, orders with traders at rival rency benchmark, banks are 0.4 total trading volumes, accord- according to the head of trad- banks in online chat rooms. increasingly turning to com- ing to Javier Paz, an analyst at ing of one of the largest cur- Now, banks are increasingly puter programs to carry out research firm Aite Group. rency-trading banks. Another acting as intermediaries by foreign-exchange trades. 0.2 “My sense is that this share senior trader at a different feeding client orders to trad- In an industry that has may have increased sharply bank agreed the use of algo- ing platforms, without shoul- been dominated by human because of government-man- rithms has surged, particularly dering the risk themselves. Ex- traders placing orders by 0 dated oversight,” Mr. Paz said. in these fix trades. ecution is left to algorithms, phone, the rise of trading al- 1998† 2001 ’04 ’07 ’10 ’13 ’16 The shift to algorithms has “There is a dramatic change which continuously scan the gorithms has accelerated after *Spot-market trades †Algorithms weren’t used in 1998. been most rapid for trades in how most banks process fix market for the best rate avail- a global probe into currency Sources: GreySpark’s surveys and analysis of Bank for International Settlements data based on the so-called fix, a orders,” said Stephane Malrait, able for each currency at any trading. Behind the shift is THE WALL STREET JOURNAL. rate set every day and used as global head of e-commerce for point of time. In return for banks’ desire to shield them- a benchmark for currency con- financial markets at ING. giving clients access to their selves from any future miscon- serve Bank of Australia, who is bruised reputation of the in- versions. Asset managers frequently advanced trading software, duct by traders, and reduce leading regulatory efforts to dustry, he said. The fix has been at the cen- place large foreign-exchange banks charge a fixed fee. the risk involved in handling implement stricter rules of be- Algorithmic trading will ac- ter of the international inves- orders ahead of the daily fix to “Banks are going from try- some currency trades, accord- havior for the industry. The count for about a third of total tigation into currency manipu- be carried out at that day’s fix ing to make a super big profit ing to bankers. move toward automation has currencies trading in 2016, ac- lation, which began in 2013 rate. In the past, banks took [in trading around the fix] to “The share of algo execu- sped up as banks implemented cording to analysis of trading and has seen around half a the risk of such trades onto just providing a service,” said tion by banks has gone up dra- new guidelines set last year by data from the largest inter- dozen of the world’s largest their own books. Traders exe- Jim Cochrane, director of exe- matically,” said Guy Debelle, the Financial Stability Board dealer brokers by consultancy currency-dealing banks pay cuted them over the phone, cution for foreign exchange at assistant governor of the Re- to clean up the scandal- GreySpark Partners. The use more than $10 billion in fines and then the client was broker ITG. EU Details New Commodity Rules

BY SARAH KENT drive out key players, making market participants will be company will also need to be it harder for airlines and utili- able to hold 5% to 35% of a treated as a financial firm for LONDON—After months of ties to manage their risks. commodity derivative’s total regulatory purposes. delays, the European Union on Commodity-market partici- open interest, but the specif- “It is clear that this legisla- Monday published details of pants have been particularly ics will be set by national reg- tion could trigger a cascade of tough new financial regula- concerned about position lim- ulators. Currently there are negative impacts that will ul- tion for commodities markets, its—or curbs on the volume no limits on the percentage timately result in a substan- ending more than a year of they are able to trade—and that a single trader or pro- tive increase of costs for Eu- uncertainty over how the whether the new legislation ducer can hold. The new lim- ropean consumers and rules will apply. will require them to be autho- its are meant to improve mar- businesses,” the European The commodities changes rized as financial firms, mak- ket stability and prevent Federation of Energy Traders are part of broad legislation ing them hold capital in a manipulation by a player said. conceived in the wake of the similar way to banks. holding a large position. The new rules must still be

financial crisis that is in- The new rules could affect The new standards also say approved by the European JASON ALDEN/BLOOMBERG NEWS tended to extend regulatory companies that buy and sell that if a company’s specula- Commission. They are due to BP is among big traders thatcouldbeaffectedbythe EU rules. oversight of fixed-income and huge volumes of oil and in- tive trading business is above come into effect in early 2017. commodity markets and move dustrial metals on a daily ba- a certain threshold, which “The past has taught us with writing the technical de- Referring to market bets more financial instruments sis—including BP PLC, Glen- varies from market to market, that change is needed in order tails of the legislation. “This firms may make, Mr. Maijoor onto exchanges. core PLC and Vitol Group— it will be subject to financial to make markets more trans- will entail a certain cost, but said, “When you move into The plans have drawn criti- and which hedge their stocks regulation. If more than 10% parent, efficient and safer to we should not forget the speculative trading and start cism from national govern- of raw materials with sizable of its total trading business is invest in,” said Steven Mai- other side of this equation, to compete with investment ments and market partici- positions in financial markets. considered to be speculative, joor, chairman of the Euro- which is the great benefits firms, there should be a level pants, concerned that the new According to the technical rather than intended to man- pean Securities and Markets safer and sounder markets playing field and you will be rules could push up costs and standards published Monday, age risk through hedging, the Authority, the body charged will bring to everybody.” caught by the rules.” For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B10 | Tuesday, September 29, 2015 THE WALL STREET JOURNAL. MARKETS DIGEST

Nikkei 225 Index STOXX 600 Index S&P 500 Index Data as of 12 p.m. New York time Last Year ago 17645.11 t235.40, or 1.32% Year-to-date s 1.11% 341.57 t7.71, or 2.21% Year-to-date t 0.28% 1896.75 t34.59, or 1.79% Trailing P/E ratio * 20.59 18.94 High, low, open and close for each 52-wk high/low 20868.03 14532.51 High, low, open and close for each 52-wk high/low 414.06 310.03 High, low, open and close for each P/E estimate * 16.45 16.52 38915.87 12/29/89 414.06 4/15/15 2.22 1.95 trading day of the past three months. All-time high trading day of the past three months. All-time high trading day of the past three months. Dividend yield All-time high: 2130.82, 05/21/15

20600 420 2150

20000 400 2100 65-day moving average

65-day moving average 19400 380 2050

65-day moving average Session high 18800 360 2000 DOWN UP

Session open t Close 18200 340 1950 Close Open t

Session low 17600 320 1900

Bars measure the point change from session's open 17000 300 1850 June July Aug. Sept. June July Aug. Sept. June July Aug. Sept.

International Stock Indexes Data as of 12 p.m. New York time Global government bonds

Latest 52-Week Range YTD Latest, month-ago and year-ago yields and spreads over or under U.S. Treasurys on benchmark two-year Region/Country Index Close NetChg % chg Low Close High % chg and 10-year government bonds around the world. Data as of 12 p.m. ET 2221.12 –1.71 2221.12 2643.78 –11.2 World The Global Dow –38.62 • Country/ Spread Over Treasurys, in basis points Yield MSCI EAFE 1641.01 –19.73 –1.19 1626.58 • 1956.39 –7.5 Coupon Maturity, in years Yield Latest Previous Month Ago Year ago Previous Month ago Year ago MSCI EM USD 781.24 –7.91 –1.00 769.36 • 1067.74 –18.3 4.250 Australia 2 1.912 123.2 121.8 112.0 202.4 1.918 1.836 2.602 3.250 10 2.698 58.7 55.6 96.5 2.701 2.738 3.495 Americas DJ Americas 458.95 –8.82 –1.89 454.05 • 525.25 –9.5 53.7 3.500 2 -0.192 -87.2 -82.8 -60.1 -0.176 -0.112 -0.022 Brazil Sao Paulo Bovespa 44015.59 –815.87 –1.82 42749.23 • 58897.45 –12.0 Belgium -87.6 0.800 10 0.923 -118.8 -110.0 -128.7 0.960 1.082 1.243 Canada S&P/TSX Comp 13194.19 –184.38 –1.38 12705.17 • 15524.75 –9.8 -120.5 3.750 2 -0.174 -85.4 -87.9 -84.0 -57.7 -0.179 -0.124 0.001 Mexico IPC All-Share 41919.00 –516.23 –1.22 39256.58 • 46078.07 –2.8 France 0.500 10 0.930 -118.1 -120.1 -110.0 -122.1 0.964 1.082 1.309 Chile Santiago IPSA 2950.27 –33.26 –1.11 2844.37 • 3361.36 –6.8 0.500 Germany 2 -0.253 -93.3 -93.9 -92.3 -64.0 -0.240 -0.208 -0.061 U.S. DJIA 16089.22 –225.45 –1.38 15370.33 • 18351.36 –9.7 1.000 10 0.593 -151.8 -151.2 -143.8 -160.1 0.652 0.745 0.929 Nasdaq Composite 4586.71 –99.79 –2.13 4116.60 • 5231.94 –3.2 4.750 Italy 2 0.153 -52.7 -56.4 -51.5 -13.8 0.136 0.201 0.441 S&P 500 1896.75 –34.59 –1.79 1820.66 • 2134.72 –7.9 1.500 10 1.756 -35.5 -36.9 -27.1 -14.5 1.796 1.911 2.384 CBOE Volatility 26.15 2.53 10.71 10.88 • 53.29 36.2 0.100 Japan 2 0.010 -67.0 -68.8 -70.6 -51.1 0.012 0.009 0.068 EMEA Stoxx Europe 600 341.57 –7.71 –2.21 310.03 • 414.06 –0.3 0.400 10 0.350 -176.1 -183.9 -180.0 -200.9 0.325 0.382 0.521 Stoxx Europe 50 2925.53 –68.40 –2.28 2714.92 • 3602.76 –2.6 0.500 Netherlands 2 -0.240 -92.0 -93.0 -89.9 -61.6 -0.230 -0.184 -0.037 France CAC 40 4357.05 –123.61 –2.76 3789.11 • 5283.71 2.0 0.250 10 0.800 -131.2 -133.2 -125.7 -142.2 0.832 0.926 1.108 Germany DAX 9483.55 –204.98 –2.12 8354.97 • 12390.75 –3.3 4.350 Portugal 2 0.335 -34.5 -33.4 -28.4 -29.0 0.366 0.432 0.288 Israel Tel Aviv 1524.08 … Closed 1411.99 • 1728.89 4.0 2.875 10 2.511 40.0 38.2 43.1 56.2 2.546 2.613 3.091 Italy FTSE MIB 20759.49 –579.62 –2.72 17555.77 • 24157.39 9.2 5.500 Spain 2 0.154 -52.6 -52.9 -54.3 -24.4 0.171 0.173 0.335 Netherlands AEX 412.32 –10.48 –2.48 366.84 • 510.55 –2.9 2.150 10 1.949 -16.3 -13.7 -11.9 -35.2 2.028 2.063 2.178 Russia RTS Index 775.73 –12.82 –1.63 578.21 • 1171.83 –1.9 3.750 Sweden 2 -0.501 -118.1 -118.9 -124.1 -43.7 -0.489 -0.526 0.142 Spain IBEX 35 9394.2 –125.30 –1.32 9231.30 • 11884.60 –8.6 2.500 10 0.696 -141.5 -143.7 -152.5 -104.1 0.727 0.657 1.489 Switzerland Swiss Market 8381.22 –124.72 –1.47 7852.83 • 9537.90 –6.7 1.000 U.K. 2 0.579 -10.1 -7.5 -2.2 12.2 0.625 0.693 0.700 South Africa Johannesburg All Share 49490.81 –840.31 –1.67 46068.08 • 55355.12 –0.6 2.750 10 1.667 -44.4 -43.4 -33.3 -5.6 1.731 1.850 2.474 Turkey BIST 100 73314.99 –1295.21 –1.74 69797.40 • 91805.74 –14.5 0.625 U.S. 2 0.680 ...... 0.700 0.716 0.579 U.K. FTSE 100 5958.86 –150.15 –2.46 5768.22 • 7122.74 –9.2 2.000 10 2.111 ...... 2.164 2.182 2.530 Asia-Pacific DJ Asia-Pacific TSM 1304.40 –2.09 –0.16 1279.71 • 1621.10 –8.5 Australia S&P/ASX 200 5113.50 71.40 1.42 4998.10 • 5982.70 –5.5 Commodities Prices of futures contracts with the most open interest 12 p.m. New York time China Shanghai Composite 3100.76 8.41 0.27 2290.44 • 5166.35 –4.1 EXCHANGE LEGEND: CBOT: Chicago Board of Trade; CME: Chicago Mercantile Exchange; ICE-US: ICE Futures U.S.; MDEX: Bursa Malaysia Hong Kong Hang Seng 21186.32 … Closed 20583.52 • 28442.75 –10.2 Derivatives Berhad; TCE: Tokyo Commodity Exchange; COMEX: Commodity Exchange; LME: London Metal Exchange; NYMEX: New York Mercantile Exchange; ICE-EU: ICE Futures Europe *Data as of 9/25/2015. India S&P BSE Sensex 25616.84 –246.66 –0.95 24893.81 • 29681.77 –6.8 One-Day Change Year Year Indonesia Jakarta Composite 4120.50 –88.94 –2.11 4120.50 • 5523.29 –21.2 Commodity Exchange Last price Net Percentage high low 386.00 -3.00 -0.77% 454.25 357.50 Japan Nikkei Stock Avg 17645.11 –235.40 –1.32 14532.51 • 20868.03 1.1 Corn (cents/bu.) CBOT 878.50 -10.75 -1.21 1,045.00 853.25 Malaysia Kuala Lumpur Composite 1608.43 –6.58 –0.41 1532.14 • 1862.80 –8.7 Soybeans (cents/bu.) CBOT Wheat (cents/bu.) CBOT 502.25 -5.50 -1.08 624.75 463.00 New Zealand NZSX-50 5699.13 11.78 0.21 5132.02 • 5957.85 2.3 Live cattle (cents/lb.) CME 136.450 -0.550 -0.40 157.575 131.700 Pakistan KSE 100 32690.02 –132.82 –0.40 28927.04 • 36228.88 1.7 Cocoa ($/ton) ICE-US 3,238 -38 -1.16 3,375 2,660 Philippines PSEi 6815.59 –101.96 –1.47 6791.01 • 8127.48 –5.7 Coffee (cents/lb.) ICE-US 119.30 -3.40 -2.77 193.65 114.55 Singapore Straits Times 2791.92 –40.72 –1.44 2791.92 • 3539.95 –17.0 Sugar (cents/lb.) ICE-US 12.32 -0.09 -0.73 17.40 11.28 South Korea Kospi 1942.85 … Closed 1829.81 • 2173.41 1.4 Cotton (cents/lb.) ICE-US 60.80 0.16 0.26% 68.11 59.70 8132.35 … Closed 7410.34 9973.12 –12.6 Taiwan Weighted • Robusta coffee ($/ton) ICE-EU 1549.00 -47.00 -2.94 2,126.00 1,497.00 Thailand SET 1352.13 –24.70 –1.79 1301.06 • 1615.89 –9.7 Copper ($/lb.) COMEX 2.2500 -0.0335 -1.47 2.9545 2.2025 Source: SIX Financial Information;WSJ Market Data Group Gold ($/troy oz.) COMEX 1134.00 -11.60 -1.01 1,309.50 1,073.70 Silver ($/troy oz.) COMEX 14.540 -0.571 -3.78 18.600 13.950 Currencies London close on Sept. 28 Aluminum ($/ton)* LME 1577.50 4.50 0.29 1,937.50 1,510.50 15100.00 -105.00 -0.69 19,750.00 13,850.00 Yen, euro vs. dollar; dollar vs. major U.S. trading partners US$ vs, Tin ($/ton)* LME Mon YTD chg Copper ($/ton)* LME 5071.00 31.00 0.62 6,445.00 4,887.00 20% Country/currency in US$ per US$ (%) Lead ($/ton)* LME 1690.00 9.50 0.57 2,137.00 1,632.00 15 1,663.00 8.00 0.48 2,377.00 1,633.50 10 Europe Zinc ($/ton)* LME 0.5742 1.7416 7.7 5 s Bulgaria lev Nickel ($/ton)* LME 9900.00 150.00 1.54 15,540.00 9,450.00 0.1471 6.797 7.4 0 WSJ Dollar index Croatia kuna Rubber (Y.01/ton) TCE 168.00 -1.40 -0.83 178.90 163.50 1.1232 0.8904 7.7 –5 Euro zone euro 0.0412 24.256 6.1 Palm oil ($/bbl.) MDEX 2394.00 52.00 2.22 2,408.00 1,908.00 –10 Czech Rep. koruna-b s Denmark krone 0.1505 6.6437 7.9 Crude oil ($/bbl.) NYMEX 44.59 -1.11 -2.43 65.09 38.51 –15 s Yen Hungary forint 0.003569 280.22 7.1 1.5112 -0.0344 -2.23 2.1071 1.4120 –20 Euro NY Harbor ULSD ($/gal.) NYMEX Iceland krona 0.007842 127.52 –0.0 –25 RBOB gasoline ($/gal.) NYMEX 1.3438 -0.0355 -2.57 1.8593 1.1966 Norway krone 0.1171 8.5390 14.6 Natural gas ($/mmBtu) NYMEX 2.692 0.061 2.32 3.3050 2.5920 2014 2015 Poland zloty 0.2649 3.7754 6.6 Russia ruble-d 0.01523 65.676 8.5 Brent crude ($/bbl.) ICE-EU 48.19 -1.08 -2.19 72.52 43.83 US$ vs, US$ vs, 0.1179 8.4792 8.6 ICE-EU 461.25 -8.50 -1.81 640.00 427.50 YTD chg YTD chg Sweden krona Gas oil ($/ton) Mon Mon 1.0266 0.9741 –2.0 Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%) Switzerland franc Turkey lira 0.3282 3.0465 30.5 Sources: SIX Financial Information; WSJ Market Data Group Hong Kong dollar 0.1290 7.7504 –0.1 Americas Ukraine hryvnia 0.0465 21.5275 36.1 India rupee 0.0151 66.1962 5.0 Argentina peso-a 0.1063 9.4070 11.1 U.K. pound 1.5200 0.6579 2.5 London close on Sep 28 Indonesia rupiah 0.0000681 14681 18.1 Cross rates Brazil real 0.2500 4.0006 50.5 Japan yen 0.008347 119.81 0.1 Middle East/Africa Canada dollar 0.7487 1.3357 14.9 USD GBP CHF JPY HKD EUR CDN AUD Kazakhstan tenge 0.003709 269.58 47.4 Bahrain dinar 2.6499 0.3774 0.1 Chile peso 0.001421 703.90 16.0 1.4290 2.1722 1.4674 0.0119 0.1844 1.6048 1.0701 ... Macau pataca 0.1253 7.9838 –0.1 Egypt pound-a 0.1277 7.8332 9.6 Australia Colombia peso 0.0003238 3088.68 30.0 Malaysia ringgit-c 0.2259 4.4260 26.3 Israel shekel 0.2543 3.9328 0.9 Canada 1.3357 2.0298 1.3712 0.0112 0.1723 1.4998 ... 0.9345 Ecuador US dollar-f 11unch New Zealand dollar 0.6340 1.5773 22.9 Kuwait dinar 3.3063 0.3025 3.3 Euro 0.8904 1.3534 0.9142 0.0074 0.1149 ... 0.6668 0.6231 Mexico peso-a 0.0587 17.0303 15.5 Pakistan rupee 0.0096 104.500 3.7 Oman sul rial 2.5980 0.3849 –0.0 Hong Kong 7.7504 11.7798 7.9572 0.0647 ... 8.7040 5.8027 5.4237 Peru sol 0.3093 3.2335 8.3 Philippines peso 0.0214 46.793 4.6 Qatar rial 0.2747 3.641 –0.0 119.8050 182.0800 123.0000 ... 15.4580 134.5400 89.7015 83.8200 Uruguay peso-e 0.0343 29.180 21.5 Japan Singapore dollar 0.7000 1.4285 7.8 Saudi Arabia riyal 0.2666 3.7504 –0.1 Venezuela bolivar 0.158729 6.30 0.1 Switzerland 0.9741 1.4803 ... 0.0081 0.1257 1.0939 0.7293 0.6815 South Korea won 0.0008370 1194.70 9.2 South Africa rand 0.0714 14.0137 21.3 U.K. 0.6579 ... 0.6755 0.0055 0.0849 0.7390 0.4927 0.4604 Asia-Pacific Sri Lanka rupee 0.0070897 141.05 7.5 Close Net Chg % Chg YTD % Chg U.S. ... 1.5200 1.0266 0.0083 0.1290 1.1232 0.7487 0.6998 Australia dollar 0.6998 1.4290 16.8 Taiwan dollar 0.03013 33.187 4.9 WSJ Dollar Index 88.73 –0.14 –0.16 6.88 0.02755 36.300 10.3 China yuan 0.1570 6.3685 2.6 Thailand baht Sources: Tullett Prebon, WSJ Market Data Group Source: Tullett Prebon

Key Rates Top Stock Listings 12 p.m. New York time Latest 52 wks ago % YTD% % YTD% % YTD% Libor Cur Stock Sym Close Chg Chg Cur Stock Sym Close Chg Chg Cur Stock Sym Close Chg Chg Asia Titans 50 One month 0.19360% 0.15250% ¥ TakedaPharm 4502 5422.00 -2.22 8.52 £ RioTinto RIO 2111.00 -4.78 -29.63 Last: 127.64 t 0.52, or 0.41% YTD t 10.2% Three month 0.32660 0.23510 Asia Titans HK$ TencentHoldings 0700 131.00 0.23 16.44 CHF RocheHldgctf ROG 252.70 0.48 -6.37 Six month 0.53310 0.33065 HK$ AIAGroup 1299 40.60 ... -5.58 ¥ TokioMarineHldg 8766 4381.00 -2.23 11.38 £ RoyDtchShell A RDSA 1508.50 -2.80 -29.95 50–day 160 One year 0.85485 0.58020 ¥ AstellasPharma 4503 1609.50 -1.14 -4.57 ¥ ToyotaMtr 7203 7049.00 -2.03 -6.73 €SAP SAP 56.79 -0.92 -2.52 moving average 150 Euro Libor 27.40 1.48 -14.62 39.56 1.05 -5.18 84.44 -2.95 11.60 t AU$ AustNZBk ANZ AU$ Wesfarmers WES € Sanofi SAN 140 One month -0.11857% 0.00143% AU$ BHP BHP 23.15 0.96 -15.65 AU$ WestpacBanking WBC 30.24 0.97 -8.81 € SchneiderElectric SU 49.48 -2.92 -18.36 High Three month -0.04214 0.05714 HK$ BankofChina 3988 3.38 0.60 -22.65 AU$ Woolworths WOW 25.04 0.60 -18.38 € SIE 78.62 -1.72 -16.14 130 Six month 0.01571 0.14714 100.80 -0.10 34.10 10.75 -2.27 -9.82 Close HK$ CKHutchison 0001 € Telefonica TEF Low 120 One year 0.12929 0.30214 HK$ CNOOC 0883 8.06 1.90 -22.80 Stoxx 50 € Total FP 38.77 -2.54 -7.00 110 Euribor ¥ Canon 7751 3511.00 -1.01 -8.58 CHF ABB ABBN 16.79 -1.06 -20.58 CHF UBSGroup UBSG 17.77 -1.99 3.98 One month -0.11100% 0.00700% ¥ CentralJapanRwy 9022 19575 1.69 7.91 €AXA CS 21.27 -2.05 10.78 € Unilever UNA 35.01 -1.56 7.25 3 10 17 24 31 7 14 21 28 4 11 18 25 Three month -0.04100 0.08300 HK$ ChinaConstructnBk 0939 5.24 0.38 -17.48 € Allianz ALV 137.10 -0.90 -0.18 £ Unilever ULVR 2608.00 -1.58 -0.76 July Aug. Sept. Six month 0.02900 0.18400 HK$ ChinaLifeInsurance 2628 27.10 1.69 -10.56 € Anheuser Busch ABI 96.24 -1.01 2.54 £ VodafoneGroup VOD 207.20 -4.80 -6.94 One year 0.14500 0.33900 HK$ ChinaMobile 0941 94.40 -0.58 4.08 £ Astrazeneca AZN 4180.00 -3.46 -8.24 CHF ZurichInsurance ZURN 235.90 -2.44 -24.32 Yen Libor AU$ CmwlthBkAust CBA 72.70 1.76 -15.12 € BASF BAS 66.09 -2.29 -5.42 Stoxx 50 10340 -1.24 13.34 945.50 -2.53 9.31 DJIA One month 0.24443% 0.21143% ¥ EastJapanRailway 9020 £ BGGroup BG. Last: 2925.53 t 68.40, or 2.28% YTD t 2.6% Three month 0.40093 0.36857 ¥ Fanuc 6954 18675 -3.66 -6.37 € BNP Paribas BNP 50.52 -3.86 2.56 $ AmExpress AXP 73.82 -1.70 -20.66 -1.25 2.63 Six month 0.56357 0.54000 ¥ Hitachi 6501 615.90 -0.98 -31.62 £ BT Group BT.A 416.45 -0.96 3.72 $ Apple AAPL 113.28 -1.24 -0.46 3600 One year 0.87117 0.84643 TW$ Hon Hai Precisn 2317 84.30 0.84 0.70 € BancoBilVizAr BBVA 7.36 -1.99 -5.42 $ BA 129.38 63.24 -2.68 -30.91 3400 Offer Bid ¥ HondaMotor 7267 3620.00 -2.29 2.67 € BancoSantander SAN 4.63 -1.87 -32.50 $ Caterpillar CAT 162000 2.53 -4.14 -3.82 0.70 $ Chevron CVX 76.03 -2.14 -32.22 Eurodollars KRW HyundaiMtr 005380 £ Barclays BARC 245.20 3200 $ CiscoSys CSCO 25.63 -1.52 -7.86 One month 0.2500% 0.1500% HK$ Ind&Comml 1398 4.53 0.89 -19.96 € Bayer BAYN 113.60 -2.61 0.53 $ CocaCola KO 39.46 -0.40 -6.54 3000 Three month 0.3500 0.2500 ¥ JapanTobacco 2914 4125.00 -0.51 23.95 £BP BP. 323.05 -3.08 -21.40 $ Disney DIS 99.77 -0.53 5.92 2800 Six month 0.6000 0.5000 ¥ KDDI 9433 2675.50 -2.32 5.10 £ BritishAmTob BATS 3555.50 -1.73 1.59 $ DuPont DD 47.54 -2.08 -32.32 One year 0.9000 0.8000 ¥ Mitsubishi 8058 2008.50 -5.15 -9.40 CHF FinRichemont CFR 73.80 -1.73 -16.89 2600 $ ExxonMobil XOM 72.81 -0.57 -21.24 ¥ MitsuUFJFin 8306 742.00 -1.29 11.66 CHF CreditSuisse CSGN 23.12 -3.87 -6.89 Latest 52 wks ago $ GenElec GE 24.61 -1.26 -2.63 3 10 17 24 31 7 14 21 28 4 11 18 25 ¥ Mitsui 8031 1450.50 -4.73 -10.55 € Daimler DAI 63.59 -3.24 -7.80 Prime rates $ GoldmanSachs GS 174.83 -2.78 -9.80 July Aug. Sept. ¥ Mizuho Fin 8411 230.10 -2.17 13.63 € Deutsche Bank DBK 23.52 -4.68 -5.86 U.S. 3.25% 3.25% $ HomeDepot HD 115.47 -1.09 10.00 ¥ NTTDoCoMo 9437 2080.00 -3.68 17.65 € DeutscheTelekom DTE 15.84 -1.15 20.74 Canada 2.70 3.00 $ Intel INTC 29.02 0.73 -20.03 AU$ NatAustBnk NAB 30.30 1.71 -9.82 £ Diageo DGE 1735.00 -0.86 -6.14 Japan 1.475 1.475 $ IBM IBM 143.42 -1.38 -10.61 ¥ NipponStl&SmtmoMtl 5401 2255.50 -3.28 -25.04 € ENI ENI 13.57 -3.00 -6.48 Dow Jones Industrial Average Hong Kong 5.00 5.00 $ JPMorganChase JPM 60.28 -1.94 -3.68 P/E: 16 ¥ NipponTeleg 9432 4265.00 -1.77 37.34 £ GlaxoSmithKline GSK 1250.50 -2.99 -9.12 Last: t t Policy rates $ JohnsJohns JNJ 90.79 -0.23 -13.18 16089.22 225.45, or 1.38% YTD 9.7% ¥ NissanMotor 7201 1088.00 -2.90 2.93 £ HSBC Hldgs HSBA 488.95 -2.91 -19.66 ECB 0.05% 0.05% $ McDonalds MCD 96.98 -0.63 3.50 ¥ NomuraHldgs 8604 703.30 -3.51 1.90 € INGGroep INGA 12.43 -3.42 14.73 19000 Britain 0.50 0.50 $ Merck MRK 48.69 -1.84 -14.27 ¥ 6752 1252.50 -0.71 -12.23 £ ImpTobaccoGrp IMT 3440.00 -2.11 21.30 Switzerland 0.50 0.50 $ MSFT 43.66 -0.63 -6.00 18000 HK$ PetroChina 0857 5.55 0.18 -35.31 € IntesaSanpaolo ISP 3.07 -2.04 26.59 Australia 2.00 2.50 $ Nike B NKE 121.69 -2.65 26.56 HK$ PingAnInsofChina 2318 39.00 0.39 -1.27 € L'AirLiquide AI 101.65 -2.21 -1.17 17000 U.S. discount 0.75 0.75 $ PFE 31.39 -1.57 0.77 $ RelianceIndsGDR RIGD 25.20 -0.98 -10.64 € LVMHMoetHennessy MC 147.15 -2.65 11.27 Fed-funds target 0.00 0.00 $ ProctGamb PG 71.93 -1.02 -21.03 16000 AU$ RioTinto RIO 48.75 -0.41 -15.95 £ LloydsBankingGroup LLOY 74.09 -1.88 -2.28 139.41 -0.11 -15.16 Call money 2.00 2.00 $ MMM 15000 KRW SamsungElectronics 005930 1112000 -1.24 -16.20 £ NationalGrid NG. 898.00 0.80 -2.19 $ TravelersCos TRV 99.86 -0.05 -5.66 Overnight repurchase rates ¥ Seven&I Hldgs 3382 5379.00 0.65 23.41 CHF Nestle NESN 71.90 -0.69 -1.44 UTX 86.86 -0.50 -24.47 14000 U.S. 0.16% 0.05% $ UnitedTech ¥ SoftBankGroup 9984 5772.00 -2.27 -19.94 CHF NOVN 88.80 -2.79 -3.84 $ UtdHlthGp UNH 114.00 -2.04 12.77 Euro zone n.a. n.a. 2 10 17 24 31 7 14 21 28 4 11 18 25 ¥ Sumitomo Mitsui 8316 4652.00 -1.44 6.33 DKK NovoNordiskB NOVO-B 370.00 -0.75 42.14 $ VISAClA V 68.71 -2.80 4.82 July Aug. Sept. 102.50 1.08 -13.36 1356.50 -2.55 -9.08 -1.14 -6.55 Sources: WSJ Market Data Group, SIX HK$ SunHngKaiPrp 0016 £ Prudential PRU $ Verizon VZ 43.72 Note: Price-to-earnings ratios are for trailing 12 months Financial Information, Tullett TW$ TaiwanSemiMfg 2330 127.00 ... -9.93 £ ReckittBenckiser RB. 5902.00 -1.47 13.28 $ WMT 63.66 -0.19 -25.87 Sources: WSJ Market Data Group; Birinyi Associates For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Tuesday, September 29, 2015 | B11 MONEY & INVESTING China Data Pressure Stocks Commodities

Singapore shares hit bear territory; Japan Shares Dented falls amid speculation BY CHIARA ALBANESE market volatility in recent AND LESLIE JOSEPHS weeks. over additional easing In the U.S., shares of Wil- Fresh evidence of the slow- liams Cos. fell 8.7% to $37.99 BY HENRY HOENIG ing economy in China added to after Energy Transfer Equity AND JAKE MAXWELL WATTS investors’ fears about the out- LP said it would buy the rival look for global growth Mon- pipeline operator for about Most Asian stock markets day, roiling many markets. $32.6 billion. Freeport McMo- fell Monday, as more down- Energy and raw-materials Ran Inc. dropped 9% to $8.91, beat data from China weighed producers were among the as base metals prices contin- on sentiment ahead of the re- biggest decliners ued to slip. lease of key economic indica- ABREAST as commodity Alcoa Inc. shares rose 4.8% tors later in the week. OF THE prices fell follow- to $9.50 after the aluminum Singapore’s FTSE Straits MARKET ing a report maker said it would split into Times Index fell 1.4%, marking showing China’s two public companies, one fo- bear territory— industrial profits cusing on mining and refining ASIA- defined as a 20% dropped 8.8% in August from a and the other on more fin- PACIFIC fall from a recent year earlier. ished industrial products. STOCKS peak. The Stoxx Europe 600 de- Sectors that had performed The clined 2.2%, dragged down by well earlier this year contin- Stock Average fell losses in the auto and mining ued to slip. The Nasdaq Bio- 1.3%, and while the Shanghai sectors. Shares in commodities technology index fell 4%. The Composite closed up 0.3%, it giant Glencore PLC sank more iShares Nasdaq Biotechnology had hovered in negative terri- than 29% to an all-time low as ETF dropped 4.2% to $297.20, tory in earlier trading. the mining company continued while the SPDR S&P Biotech

Australia’s S&P/ASX 200 NICKY LOH/BLOOMBERG NEWS to suffer from a slump in com- ETF was 4.5% lower at $64.39. gained 1.4%, recovering some Export-driven firms that focus on commodities, such as Noble, were under fire in Singapore trading. modity prices and concerns losses from last week. over its burgeoning debt. Stocks in Singapore, a com- he expected the price target to term, said Masayuki Kubota, to a merger with rival Vocus In the U.S., the Dow Jones China’s industrial modities-trading hub, have be reached in the middle of chief strategist at Rakuten Se- Communications in a deal Industrial Average fell 218 profits fell 8.8% in come under fire as signs that next year but said the central curities. that would build Australia’s points, or 1.3%, to 16096 at China’s economy is slowing bank wouldn’t hesitate to act While Chinese shares eked fourth-largest telecom com- midday. The S&P 500 fell 1.7%, August compared more quickly than expected if it judged the overall price out gains, low volumes signal pany, with a market value of while the Nasdaq Composite withayearago. have sent commodities prices trend to be changing. that investors remain uncer- more than three billion Aus- dropped 2%. tumbling. Mr. Kuroda had met with tain, analysts say. Trading vol- tralian dollars (US$2.1 billion). The Nikkei 225 Stock Aver- Earlier Monday, Chinese Prime Minister Shinzo Abe at ume fell to 404 billion yuan The deal marks the latest age closed down 1.3%, while Investors focused on Fed- officials reported industrial the prime minister’s official ($63.4 billion), the lowest since shake-up of the industry as the Shanghai Composite rose eral Reserve Bank of New York profits fell 8.8% in August residence early Friday after- February, according to data smaller companies strive to 0.3%. The Hong Kong market President William Dudley, who from a year earlier, the biggest noon to discuss Japan’s sput- provider Wind Information Co. break the dominance of Tel- was closed Monday. said Monday the central bank drop since October 2011, com- tering economy, prompting “Large institutional inves- stra over phone and Internet “Sentiment has been very will likely raise interest rates pared with July’s 2.9% decline speculation that the central tors are neither buying nor services, and as Australia con- negative” after the disappoint- later this year. Mr. Dudley also from a year earlier. bank might implement addi- selling at this point as the risk tinues to roll out a national ing China data, said Antonio emphasized that a rate in- On Friday, Singapore re- tional easing and helping send appetite remains low due to a broadband network. Garcia Pascual, an economist crease could come at any Fed ported weaker-than-expected share prices 1.8% higher. continued crackdown on ille- Global investors this week at Barclays in London. meeting, including in October. industrial production, as ex- Selling early Monday was gal margin loans,” said Shen will likely focus on key U.S. Citigroup lowered on Mon- The yield on the benchmark port sectors such as electron- partly driven by a reassess- Zhengyang, an analyst at and Chinese economic indica- day its forecast for global 10-year Treasury note was ics continued to contract. ment of the prospects for fur- Northeast Securities. tors, including U.S. nonfarm- growth in 2016, reducing it to 2.112%, compared with 2.167% Export-driven companies ther easing, said Soichiro Outstanding margin loans payroll figures and official 2.9% from 3.1%. It was 3.5% as on Friday as demand for haven that focus on offshore marine Monji, general manager of totaled 581 billion yuan as of manufacturing data from recently as May. In a note, assets rose. Yields fall as engineering and commodities economic research at Daiwa Sept. 25, compared with the China, after U.S. Federal Re- economists at the bank said a prices rise. were among Monday’s worst SB Investments. peak of 2.26 trillion yuan in serve Chairwoman Janet Yel- global recession is a “rapidly “Until there’s a catalyst to performers, with SembCorp “The buying [Friday] proba- June, according to Wind Infor- len said she expected an inter- rising and significant risk.” push the market definitively Marine down 3.9% and Noble bly wasn’t based on the seri- mation. China’s stock regula- est-rate increase by year-end. A slowdown in China’s higher, we’re going to go Group down 2.2%. ous assumption that they will tor previously demanded that Ms. Yellen’s comments, deliv- economy was the main driver through this back and forth,” In Tokyo, the Nikkei ex- act,” Mr. Monji said. “Some brokers clean up all illegal ered late Thursday, were taken for the change in forecasts. said Quincy Krosby, strategist tended losses into the close af- are just saying they should act margin-loan accounts by the as a sign of confidence in the “Advanced economies are not at Prudential Financial. ter comments by Bank of Ja- because stocks are down.” end of September. U.S. economy. immune to this,” they said. In currencies, the euro rose pan Gov. Haruhiko Kuroda, Some see buying opportuni- In Australia, meanwhile, in- Markets in Hong Kong, Tai- Concern over a slowdown 0.4% against the dollar, trad- who said inflation wouldn’t ties in Tokyo, where corporate vestors picked up energy and wan and South Korea were in the world’s second-largest ing at $1.1235. The dollar fell reach the BOJ’s 2% target earnings are at records. The banking stocks that were bat- closed. economy and its potential im- 0.8% against the yen. without a further strengthen- Nikkei is near a bottom and a tered last week. —Robb M. Stewart, pact on the U.S. Federal Re- In commodity markets, ing in the link between em- drop in commodity prices will Leading gains, however, Kosaku Narioka serve’s plans to normalize Brent crude oil was 2.3% lower ployment, wages and prices. provide a significant boost to were shares in M2 Group, and Yifan Xie monetary policy after years of at $48.15 a barrel. Gold fell 1% Mr. Kuroda reiterated that the economy in the longer which rose 13% after it agreed contributed to this article. rock-bottom rates, has fueled to $1,133.00 a troy ounce.

All Abroad Australian Mining’s Future Australians are including more overseas shares in their portfolios as the end of a resources boom crimps returns at home and as the U.S. dollar rises against the local currency. Index performance How many Australian dollars Where Australian investors Still Bright, Minister Says one U.S. dollar buys want to put their money 200% A$1.6 40% BY ROB TAYLOR 2030, based on 2005 levels. Tony Abbott, a long-standing But Australia’s government skeptic of man-made climate Invested in 2014 S&P 500 Intend to invest in 2015* CANBERRA, Australia—Aus- last year dumped a price on change—was looking at re- 150 1.4 30 tralia’s new resources minister carbon emissions and reined forms to aid mining competi- says he is upbeat about the fu- back a renewable energy gen- tiveness against foreign rivals, 18% ture of the country’s mining eration target to 33,000 giga- including simplifying taxation 100 1.2 20 sector, despite slumping re- watt hours from 41,000 giga- and less rigid labor laws. DJIA 14 source prices and accelerating watt hours, arguing they were “Foreign investment is ab- efforts among major nations, imposing too high a burden solutely critical to the devel- 50 1.0 10 11 including China, to combat cli- on a 1.6 trillion Australian opment of our resources. We 11% 6 mate change by curbing fossil- dollar (US$1.1 trillion) econ- want to encourage as much in- 8 S&P/ASX 200 fuel emissions. omy struggling to adjust to vestment as possible, and 0 0.8 0 4 5 Josh Frydenberg, ap- the end of a mining boom. that’s why we’ve already made 2009 ’10 ’11 ’12 ’13 ’14 ’15 2012 ’13 ’14 ’15 U.S./North Int’l Asia Western pointed resources and energy The country’s powerhouse some significant changes in America fund† Europe minister by Prime Minister miners are under pressure be- deregulation about simplifying *Survey taken in October 2014 †International funds covering multiple regions Malcolm Turnbull in a cabinet cause of China’s economic the environmental approval Sources: Iress (index, currency); Investment Trends (investment) THE WALL STREET JOURNAL. shake-up last week, said he slowdown and a downturn in stages,” he said. was confident there would be prices for many major re- “The fundamentals of our ferings in the manufacturing strategy at Vanguard Australia strong appetite for high-qual- source exports, including coal resource sector are very GLOBAL sector—for example, pharma- in Melbourne. The local divi- ity Australian thermal coal and iron ore. Plans to turn the strong. We’ve got a lower Aus- ceuticals and foods. But the sion of the Malvern, Pa.-based and liquified-natural-gas ex- country into an LNG giant tralian dollar, which makes [Australian] market has firm, which manages $3 trillion ports for decades, despite have been set back by oil-price our resource exports more ContinuedfrompageB7 changed. Now, it’s concen- globally, this month announced competition from cleaner declines, making some proj- competitive, but we need to country’s total pension savings, trated.” plans to list four new interna- wind and solar technologies. ects seem less compelling. focus on innovation technol- but allocate less than 1% of Index funds, such as those tional exchange-traded funds “I’m very positive about the ogy and boosting productivity. their total assets to interna- Mr. Denton recently switched here, adding to the 12 products renewable energy space; I’m That may be in areas of labor- tional shares. to, have been an investment it already offers. very positive about the oppor- market flexibility and tax re- During the boom years, staple elsewhere for decades, State Street Global Advi- tunities for further invest- form.” they benefited from their bias but they gained popularity in sors, the asset-management ment. I’m very positive about Any ambitions to reform toward home-grown stocks be- Australia more recently. The arm of State Street Corp., this the increasing demand for tax and workplace laws may cause Australian companies number of Australians invest- month launched a new Austra- Australia’s natural-resources face a long wait until after offered some of the world’s ing in exchange-traded funds— lian exchange-traded fund and energy sector,” Mr. elections expected next year, richest dividends, providing which track market indexes comprising a mix of overseas Frydenberg said in an inter- when Mr. Turnbull’s govern- pensioners with a steady in- and aren’t run by stock pick- stocks ranging from U.S. blue view on Monday. ment will seek a mandate from come in addition to any capital ers—has risen nearly 60% in chips to emerging-market The U.S. and China last voters. Labor law changes gains. Recently, though, a slew the past year alone, according shares. week announced major steps would be risky, having proved of earnings downgrades have to research firm Investment “There is a hunger for in- to fight climate change, in- electorally toxic for the previ- left investors scrambling for Trends. ternational shares in Austra- cluding a pledge by China to ous conservative government, value in a market heavily con- Investors are looking at lia,” said Jenny Brown, who launch emissions trading by which was ousted in 2007. centrated on resources and overseas markets, including runs financial-strategy firm 2017, while India this week is Mr. Frydenberg, 44 years banking stocks but with noth- funds focused on the U.S. S&P JBS Financial in Melbourne expected to set an ambitious old, a former assistant trea- ing to rival tech companies 500 index. Factoring in ex- and helps manage mom-and-

target for as much as 40% re- BRENDON THORNE/BLOOMBERG NEWS surer under Mr. Abbott, said like Inc. and Apple Inc. change-rate shifts, Australian pop investors’ pension portfo- newable power by 2030 and Coal prices have declined. there was a “strong moral In the wealthy Sydney har- investors would have had a lios. She said the weaker Aus- emissions cuts of 35% on 2005 case” for Australia’s resource borside neighborhood of Point 32.5% gain in the 12 months tralian dollar has spurred levels by 2030. Exploration expenditure on exports, as the country’s coal Piper, 77-year-old Paul Denton through Aug. 31 on index- interest in unhedged ex- The commitments by three minerals and petroleum explo- and gas were relatively clean recently decided his retire- based products like BlackRock change-traded funds in partic- of the world’s largest emitters ration fell 6.7% last year to burning and bring power to ment portfolio needed a radi- Inc.’s iShares Core S&P 500 ular in recent months. add to momentum ahead of A$6.6 billion, according to an millions of poorer people in cal overhaul. On the advice of fund. Australians are also putting global climate talks in Paris April report on Resources and developing nations like India. his financial planner, he sold International products now more money into actively later this year in which na- Energy Major Projects issued To help lure in fresh invest- nearly all of his direct Austra- make up more than 40% of the managed international prod- tions will try to agree on a cli- by the government. The num- ment in Australia’s sparsely lian share holdings and in- exchange-traded-fund market ucts. Some use new online mate accord to help limit ber of resource projects at the populated northern tropics— stead plowed into index-based here, with almost as many brokerage platforms to buy global temperature rises to 2 feasibility stage in Australia facing export markets in funds, including one tracking new listings announced in the overseas shares directly. degrees Celsius. has fallen to 180 in April this Asia—the government was the S&P 500, as well as hold- past two years as in the two However, most Australians Australia, which is among year from 305 in April 2011, at also willing to look at helping ings in Boeing Co., Apple and decades prior, including multi- have little idea which stocks to the world’s largest per capita which time commodity prices fund ports, rail and roads, us- Nestlé SA, boosting his overall ple products from global asset buy overseas, said Recep III emitters of greenhouse gases were at their peak. ing its recently established exposure to international managers such as BlackRock Peker, head of research at In- due to its reliance on coal for Mr. Frydenberg said the A$5 billion Northern Infra- shares to about 40%. and Vanguard Group. vestment Trends in Sydney. much of its electricity, has government—roiled by a lead- structure Fund, he said. “I was looking for alterna- “We’re excited by the “This has created a huge op- also set a Paris target to cut ership struggle this month —Rhiannon Hoyle in Sydney tives,” Mr. Denton said. “There growth,” said Jeffrey Johnson, portunity for fund managers,” emissions by 26% to 28% by that saw Mr. Turnbull replace contributed to this article. used to be a lot more share of- head of Asia-Pacific investment Mr. Peker said.