32 WEDNESDAY, JULY 30, 2008 THE WALL STREET JOURNAL. ON OTHER FRONTS

7 Dispatch / By Andrew Higgins

VOL. XXVI NO. 126 WEDNESDAY, JULY 30, 2008 Œ2.90 Œ2.90 China weighs new curbs as

Turkey battles issue: What would Ataturk do? - Spain 7

- France pollution threatens Games Ankara, Turkey signs of this, he says, are the woes of NEWS IN DEPTH | PAGES 14-15 Sk 100

Œ3.20 Trade summit collapses HE Ataturk Thought As- his group. sociation,zealousguard- The governing party’s own claim - Slovakia ian of the secular creed of allegiance to Ataturk only demon- - Finland Merrill Lynch fire sale may Food-tariffs impasse that guides Turkey, stratesitsdeviousness,saysMr.Kara- Œ3

never thought it would man. When Recep Tayyip Erdogan, Dkr 22 burn fingers on Wall Street leaves Doha Round

Tcome to this. now Turkey’s prime minister, - Portugal MONEY & INVESTING | PAGE 17 Its chairman, a retired four-star launched the AK Party in 2001, he did dead in the water - Denmark general, is in jail. Its offices—plas- so in a hall bedecked with a giant por- Zl 10.50 tered with portraits of modern Tur- traitofAtaturk.Theeventbeganwith By John W. Miller Kc 110 key’sfoundingfather,MustafaKemal a minute’s silence in Ataturk’s mem- - Poland Ataturk—have been raided by police. ory. “All fake,” huffs Mr. Karaman. GENEVA—A marathon trade Several of its computer hard drives Suat Kiniklioglu, an AK Party leg- Nkr 27 summit aimed at closing the so- have been seized by investigators. islator, says he has “no problems at What’s News— called Doha Round of global trade - Czech Republic They’re hunting for evidence of plots all” with “Ataturk’s principles” but - Norway negotiations collapsed Tuesday, af- 7 Business&Finance World-Wide 7

byhard-lineseculariststotoppleTur- the key issue is “how we interpret Œ2.90 ter a standoff over food tariffs ex- key’s mildly Islamic government. them.” Ataturk’s “true genius,” he HRK 20 Alcatel-Lucent CEO Russo and A global trade summit aimed posed a dramatic shift in the inter- The assault, declares Suay Kara- says, was his “ability to adapt to Chairman Tchuruk plan to step at closing the Doha Round of ests and influence of trading power- man, a land surveyer now filling in change.” Clinging to details from - Croatia down, ending a painful first trade talks collapsed, after a houses China, India and Brazil. - Netherlands for the Thought Association’s im- the 1920s, he says, “will not work.” chapter for the trans-Atlantic standoff over food tariffs ex- The failure by negotiators from Œ2.90 prisoned chairman, shows that Secularism a la Ataturk is not a Dh 24 telecom-equipment company posed a shift in the interests and more than 30 countries and blocs at “there is no such thing as moderate simple formula. Unlike America’s they created two years ago as influence of China, India and Bra- the World Trade Organization in - Belgium £1.40 it struggles with a slowdown zil. The failure could also signal

Islam.” Raids in Ankara and Istanbul founding fathers, who separated - Morocco Geneva leaves the Doha Round dead came in the weeks before the coun- church and state, Ataturk did not so Œ3 in global spending. Page 1 an end to 60 years of expansion in the water for some time to come. Œ2.90 of global free-trade deals. Page 1 try’s Constitutional Court on Mon- much split Islam from the state as n British Airways and Iberia are It could also signal an end to some Associated Press - Austria Alcatel-Lucent’s CEO Patricia Russo said she would leave the company by the end day began considering the secular- subordinate it to the state. He abol- in talks over a potential $6.3 bil- n Karadzic supporters pro- 60 years of relentless expansion of ists’ own offensive: a suit to outlaw ished the post of Caliph and placed global free-trade deals, trade diplo- of the year along with Chairman Serge Tchuruk. – United Kingdom lion merger and plan to apply for tested in Belgrade in a show of - Luxembourg the governing party for violating all mosques and Muslim clerics un- $2 mats and experts said.

Lk 370.00 permission to create a joint ven- strength by nationalist parties secular mandates Ataturk en- der a government department. At ture with AMR’s American. Page 1 against Serbia’s turn toward co- After nine days of often bitter ne- shrined in 1923. A final battle looms the same time, he purged religion L£ 4000 operation with the West. Page 2 gotiations, trade diplomats to decide whether Turkey remains a from other state agencies. n BP turned up the heat in its emerged exhausted in Geneva Tues- n Turkish planes attacked Alcatel leaders to depart secular republic faithful to Ataturk, Ataturk, a very stylish dresser battle over its Russian venture, Kurd- day to trade blame over who had col- - Lebanon

Associated Press Associated as its chief said it will use “all says Mr. Karaman, or instead “be- himself,clearly didn’t liketraditional - U.S. Military (Eur) ish rebels in northern Iraq, kill- lapsed a seven year round of trade comes like Saudi Arabia.” Islamicgarb, viewing it as an emblem Œ2.90 legal means” in the dispute ing dozens of guerrillas, Turkey’s negotiations whose original goal Warnings of the demise of Atat- Pro-secular demonstrators, one of them holding a portrait of modern Turkey's founder, during a protest in Istanbul this month. of backwardness. His best-known with its partners. Page 2 military said. A militant spokes- had been to benefit farmers in poor - Italy

YTL 4.25 amid losses, merger woes urk’s legacy have been around al- comments on the dress question n Siemens will seek financial man said no rebels were killed. countries by giving them greater ac- Œ2.90 By Leila Abboud mostsincehedied70yearsago.A re- camein1925whenhedeclared“inter- damages from 11 former top ex- n Israel’s defense minister said cess to wealthy markets. matter. lentless modernizer, hearty drinker the Caliph, Islam’s supreme leader. an affront to secular traditions. Mao Zedong, embalmed in Tianan- national”—that is, Western—dress - Turkey ecutives amid a bribes-for-busi- he told U.S. officials Israel won’t “In the face of the global food cri- In an interview, Ms. Russo said she and fan of the fox trot, the founder of Yet Ataturk’s way prevailed for de- The Constitutional Court quickly men Square, has slipped from his as “very important and appropriate ness scandal. Page 3 rule out a military strike against sis, it’s unconscionable that this Patricia Russo and Serge Tchuruk, had reached her decision to leave the cades. putastoptothat,andthechiefprose- pedestal: The Chinese Communist for our nation. We shall wear it.” S£ 150 came down to how much countries architects of the merger that created company over the past couple of the Turkish Republic—his name - Ireland (Rep.) Iran. The U.S.’s Rice called Iran’s means“fatherofthe Turks”—hadis- Now, says Mr. Karaman, it faces cutor, an ardent secularist, filed suit Party’s official view of him is 70% Legislation he introduced, n Oil’s meteoric rise is burn- could raise their barriers to imports Alcatel-Lucent SA in 2006, an- months because she felt her mandate

- Syria latest response to diplomatic

Ft 530 ing out, some traders and ana- sues with Islam. He shut down Is- grave peril. In February, Turkey’s in March, asserting that the govern- good, 30% bad. knownastheHatLaw,didnotexplic- overtures a disappointment. of food,” U.S. trade representative nounced their resignations on Tues- to stitch together the U.S. and French lamic schools, banned Islamic garb elected government—led by obser- ing party poses a “clear and present” Ataturk, revered for defeating in- itly prohibit veils or headscarves lysts say, weeks after specula- Susan Schwab said in an interview, day, a move some saw as an acknowl- companies was drawing to a close. and opened a German brewery in his vant Muslims whose wives mostly dangerand mustbestoppedbeforeit vading British, French and Greek and focused instead on banning fez- SF 4.80 tion that crude could climb to n U.S. Sen. McCain’s pledge to referring to positions taken by edgement of the executives’ failed ef- “The most difficult period of the - Hungary new capital, Ankara. His was hardly wear headscarves—moved to let pi- imposes Islamic law. Outlawing the forces, is untouchable. His mauso- zes and turbans for men. The ban on more than $150 a barrel. Page 3 eject from the G-8 could Please turn to page 31 forts to create a profitable global tele- merger is behind us,” Ms. Russo said. the path of least resistance in a land ous female students cover their hair Justice and Development, or AK, leum in Ankara drew more than 12 headscarves in colleges dates not Œ2.90 n European stocks followed eventually lead to a breakdown com equipment giant out of two trans- “Last year was really tough, but since in U.S.-Russian relations, a senior that is 99% Muslim, once ruled on university campuses, something Party could rock its leaders—and the million visitors last year, up by four from Ataturk, say its opponents, but - Switzerland Wall Street’s lead, with shares Atlantic rivals. we put in place the turnaround plan

- Greece Page 3 Meccaandwasforcenturieshometo that had been banned for years as country—politically, though they million from 2006. The constitution from a 1980 coup by the military, on both sides of the Atlantic Russian diplomat warned. Two years after the merger, Alca- in the fall, we’ve made concrete, posi- Œ3 kr 27 likely could reorganize under an- bans all deviation from the “re- which also tried, in vain, to crack climbing on robust earnings n Richard Perle, an early Penta- tel has posted six consecutive quar- tive progress.” other banner without giving up forms and principles” of “the immor- down on miniskirts. Mr. Karaman and lower oil prices. Page 18 gon proponent of U.S. military BA and Iberia ters of losses and has lost half of its The management upheaval comes Germany For information or to subscribe, visit www.services.wsje.com or call +32-2-741-1414 — Albania power. Tensions were stoked late tal leader and the unrivalled hero.” says the spirit, if not the letter of the Sweden market capitalization—even though at a difficult time. The largest tele- n action in Iraq, has been explor- Sunday,ontheeveofthecourttaking It is illegal in Turkey to publicly 1925 law, requires modern dress for Banco Santander profit fell it has tried to streamline its business com-equipment vendors have been 5% on lower capital gains, and ing going into the oil business upthecase,bytwobombs inIstanbul curse him. Virtually nobody, includ- both sexes. in Iraq and Kazakhstan. Page 9 pursue merger by cutting about 16,500 jobs world- hard hit by a slowdown in global thatkilled17people.Therewasnoim- ing members of the AK Party, disses During a discussion of the 2006 the bank may sell asset-manage- wide and overhauling everything spending, as their biggest clients, tele- mediate claim of responsibility. him, at least not in public. One budget by legislators, a furious row ment and insurance units. Page 4 n Indian and Pakistani soldiers from its sales force to product portfo- com operators, are consolidating. The headscarf effort, says Mr. young, headscarf-wearing woman erupted over Islam, Ataturk and n Earnings rose at LVMH traded fire in Kashmir for over for $6.3 billion lio. The industry has also been hurt by Karaman, along with the arrest of recently said on TV, “I do not like headwear, when AK Party legislator Möet Hennessy Louis Vuitton, 12 hours, in what the Indian Now, with the departures of Ms. price wars with new Asian low-cost his boss and scores of others, has ex- him.” She is being investigated by Musa Uzunkaya asserted that Atat- defying a global economic cri- army called the worst violation By Daniel Michaels Russo and Mr. Tchuruk, Alcatel-Lu- competitors such as China’s ZTE posed what he calls the governing prosecutors. urk’s wife, Latife Hanim, attended sis that has sapped spending of a 2003 cease-fire agreement. cent will be spending the next few Corp. that are turning telecom equip- party’s hidden agenda—a plan to Politicians invoke Ataturk’s meetings at the presidential man- on lower-priced goods. Page 3 n Bush signed legislation to British Airways PLC and Spain’s months looking for a new manage- ment into a commodity. turn Turkey into an Islamic theoc- name to justify starkly different sion in the 1920s with her hair cov- Iberia Líneas Aéreas de España SA ment team. More than a week ago, the Makers of traditional telecom n Ford and General Motors punish Myanmar’s ruling junta racy. Chanting “Turkey will not be agendas. Even Ataturk’s long-de- ered. Was she a “reactionary?” he said they are in talks over a poten- board took bids from recruiting firms equipment have seen their operating curtailed lease programs, join- by freezing assets of political Iran,” activists in the Ataturk ceased wife, whom he divorced, has asked. The question enraged ardent tial £3.16 billion ($6.3 billion) to help with its search for executives margins shrink from 7.3%in 2001, dur- ing Chrysler in tightening or and military leaders there. Thought Association held a noisy been dragged into furor: Did she or secularists, who saw it as defiling merger—a deal that would capital- and possibly new board members, ac- ing the telecom meltdown, to 6.2% cutting the practice because of n Shell said it won’t be able to protest on July 19 in Istanbul, wav- didn’t she observe Islamic custom Ataturk’s memory. ize on recent airline deregulation de- cording to a person familiar with the Please turn to page 31 growing losses. Page 5 ing portraits of their jailed chair- and cover her head? An AK Party IpekCalislar,theauthorofabiog- meet a significant chunk of its spite worsening conditions in the man, Sener Eruygur, and of Ataturk. legislator has contended that she raphy of Turkey’s first first lady, n German inflation pressures Nigerian oil-export obligations aviation market. A few days later, more than two did. That question is among the is- says she sometimes hidher hair only persist. The consumer-price in- for two months after militant The negotiations come as the Page 20 dozen people were arrested as part sues to be mulled by the Constitu- soconservativescouldnotpushAtat- dex remained high in July, and attacks on its facilities. two carriers plan in coming days to of a sprawling search for antigovern- tional Court. urk “into a corner because of her negotiated wages in April rose n Islamic militants seized a secu- apply with U.S. authorities for per- ment plotters. Mr. Eruygur hasn’t Just as Muslim activists mine the dress.” It wasn’t an endorsement of at a fast pace. Page 8 rity post in Pakistan’s northwest, mission to create a joint venture 19% been charged; his lawyer has said he Quranforversestoboosttheircause, Islamic norms, says Ms. Calislar: n The U.K. economy’s outlook capturing at least 25 police and with AMR Corp.’s American Air- is innocent of wrongdoing. Turkey’s hard-line secularists and “People are arguing about this in a darkened as retail-sales growth troops, Pakistani officials said. lines, according to BA and Iberia. LESS POWER Many, including foreign diplo- theirfoesdelveintoAtaturk’svolumi- very stupid way.” and mortgage activity slowed. A Such a venture would deepen ties n China failed to improve its hu- * mats, scoff at the notion that Tur- nous writings and speeches—Tur- Next to his desk, Mr. Karaman separate report said it will take a among three of the world’s largest man-rights record in the run-up key now is governed by a cabal of key’ssecularscripture.Thesheervol- keeps a big photograph of Ataturk in couple of years for the mortgage airlines, giving customers access to CONSUMPTION to the Olympics, intensifying a closet fundamentalists. The AK ume of Ataturk’s words gives plenty military uniform. Ataturk, he pre- market to normalize. Pages 10, 19 even more European and U.S. desti- crackdown on activists in recent Party generally is friendly to the of scope for argument: a single dicts, will ultimately triumph. His nations. American and BA twice in years, an Amnesty report said. West—friendlier than many secular speech he gave in 1927 lasted 36 hero, he says, would be in no doubt Markets 4 p.m. ET the past decade applied for antitrust activists, in fact. Party officials hours, spread over six days. about how to confront any assaults NET PCT n Forty-five workers were immunity from the U.S. Department MARKET CLOSE CHG CHG deny harboring anti-Ataturk ten- For Mr. Karaman of the Ataturk on Turkish secularism were he still taken to a hospital after a minor of Transportation, and both times SIMPLIFY YOUR POWER dencies. Thought Association, a bastion of DJIA 11397.56+266.48 +2.39 radioactive leak triggered an withdrew the request for fear that alive today: “He would put his army CONSUMPTION AT Nasdaq 2319.62 +55.40 +2.45 the demands imposed on them One thing is clear: Ataturk wor- Turkey’s secular establishment, the boots back on and start fighting.” alarm at a French nuclear site DELL.CO.UK/HiddenDatacentre ship, the world’s most enduring key text is one of Ataturk’s shorter —Farnaz Fassihi DJ Stoxx 600 279.64 +0.91 +0.33 near Avignon, an engineer said. would be too high. personality cult, still holds this in- works, a 230-word address to Turk- contributed to this article. FTSE 100 5319.2 +6.6 +0.12 While the talks between BA and creasingly prosperous nation of ish youth. It warns against “malevo- DAX 6398.80 +47.65 +0.75 Editorial&Opinion Iberia and the discussions over the more than 70 million people in its lent people at home and abroad,” WSJ.com CAC 40 4320.49 -3.96 -0.09 three-way venture have been going *Principled Technologies Test Report SPECjbb2005, Dec 2007. ©2008 Dell Products. Dell, the Dell logo are registered trademarks or trademarks Associated Press Associated thrall. Ataturkshows scant sign of and urges ceaseless struggle against on for months, they were acceler- Online today Euro $1.5600 -0.0137 -0.87 After Doha of Dell Inc. Dell Products, Dell House, The Boulevard, Cain Road, Bracknell, goingthewayofhiscontemporaries. any “traitors” who worm them- See photos from Turkey’s Protectionism must be avoided ated recently as the airline industry Berkshire, RG12 1LF. Terms and Conditions of Sales, Service and Finance Vladimir Lenin lies in Red Square selves into power. That dark fear, Nymex crude $122.19 -2.54 -2.04 was hit by unprecedented fuel bills apply and are available on request or at www.dell.co.uk. Dell disclaims Turkish President Mustafa Kemal Ataturk with struggle with the headscarf, after the trade talks’ collapse. proprietary interest in the trademarks or trade names of other entities but is barely mentioned in Russia says Mr. Karaman, has taken shape and shrinking demand, according to his wife, Latife Hanim, shown in Istanbul in 1925. at WSJ.com/OnlineToday Money & Investing > Page 17 Review & Outlook. Page 11 used to refer to them or their products. now, except as a butt of jokes. Even in the form of the AK Party. Among Please turn to page 31 2 WEDNESDAY, JULY 30, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. WEDNESDAY, JULY 30, 2008 31 LEADING THE NEWS FROM PAGE ONE BP vows to fight on in bid Tariffs impasse kills trade summit Serbs protest extradition Continued from first page back home. “Previous trade rounds money into factories and offices, China and India. Mrs. Schwab said picked the low-hanging fruit,” says they had little reason to further don’t mean us well. The more peo- licly reminded Mr. Tadic of the fate to control Russia venture President George W. Bush had William J. Bernstein, author of “A crack open their markets. They espe- Karadzic supporters ple we sell [to The Hague], the of former Prime Minister Zoran called her on Monday night to say Splendid Exchange: How Trade cially feared a flood of cheap im- harder the Western pressure on us Djindjic, who was assassinated by a By Guy Chazan “we should do everything possible” Shaped the World,” noting that Tues- ports from China, diplomats said. decry West leanings, becomes,” said Ilya Vukadinojic, a sniper in 2003. Mr. Djindjic had BP to secure a deal. “To see this fail is day’s summit was the eighth in a row Domestic political concerns also 54-year-old laborer from Belgrade. turned former Serbian leader Slo- —BP PLC will use “all le- Net profit, in billions heartbreaking,” she added. to fail. “We may have reached the end played a role. India’s ruling coali- say tribunal is biased Most Serbs don’t want Mr. bodan Milosevic over to the The gal means” at its disposal to fight its Negotiators from developing of the line for trade deals.” tion, led by the Congress Party, Karadzic delivered to The Hague, not Hague tribunal two years earlier. partners in TNK-BP Ltd., the $10 countries had scathing words over Economists disagree on the Doha faced pressure from left-wing par- Thousands of supporters of ac- because they condone the 1995 execu- U.K.-based company’s chief executive U.S. claims to have made significant Round’s potential benefits; estimates ties to kill a deal. The Indian govern- Press Associated Following Mr. Djindjic’s death, Ser- cused war criminal Radovan Karadzic tion of some 8,000 unarmed Muslim said Tuesday, ratcheting up the ten- 8 sacrifices while demanding more ac- of economic gain range from $4 bil- ment’s left-wing allies withdrew bia’s political path became less clear. Travel companions? protested in central Belgrade in a males in the Bosnian enclave of Sre- sion in a dispute for control of the An- cess to emerging economies. lion to $100 billion. Set against the their support from the government President and later Prime Minister A look at British Airways and Iberia Líneas Aéreas de España in 2007: show of strength by nationalist par- brenica, but because they believe the glo-Russian joint venture. 6 “It’s unfortunate that in a devel- rapid expansion of global trade to a few weeks ago over their objec- Vojislav Kostunica, a moderate nation- ties against the country’s sharp turn tribunal is biased, Radical party “We’ll see who is the weakest part- opment round, we couldn’t agree to $13.6 trillion last year from $7.6 tril- tions to a civilian nuclear-energy British Airways Iberia toward cooperation with the West. leader Aleksandar Vucic said. “Our alist, forced the country’s coalition ner,” Tony Hayward told reporters as 4 an issue of livelihood and security,” lion five years ago, the bottom-line deal between the U.S. and India. As many as 20,000 protesters goal is to show that free-minded peo- government to slow Serbia’s bid for he unveiled BP’s strong second-quar- said India’s trade and commerce loss from Doha’s failure is “not a mar- Now the Congress Party faces na- Fleet 245 198 chanted slogans tarring Serbia’s pro- ple in Serbia will resist” the govern- EU integration. Efforts to arrest Mr. ter results. Soaring oil prices sent net 2 minister, Kamal Nath. ket issue,” says Julian Callow, an econ- tional elections sometime before Passengers Over 33 million 32.5 million European president, Boris Tadic, as ment’s “dictatorship.” Karadjic and Bosian Serb commander income up 28% to $9.47 billion, from The longest global-trade summit omist at Barclays Capital in London. next May and is expected to pursue Operating bases Heathrow, Gatwick - London Barajas - Madrid Liberals and many analysts in Ratko Mladic invariably failed when $7.38 billion in the same period last 0 diplomats could remember col- Nor is the world on the edge of a populist agenda to try to shore up 1Q 2Q 3Q 4Q 1Q 2Q Revenue £8.75 billion Œ5.52 billion By Marc Champion in Brussels Serbia argue that Western observ- they slipped away just in time, appar- year. The earnings demonstrated TNK- lapsed over a simple bargain: Rising the kind of protectionist wave that support in the face of rising infla- 2007 ’08 and Radoslavka Despotovic ers have consistently gotten the ently tipped off. BP’s importance to BP’s bottom line. titans such as China and India ended the last period of globaliza- tion and slowing economic growth. Average employees 42,403 22,514 in Belgrade country wrong in predicting a na- That changed with elections ear- The venture earned $1.35 billion for Source: the company would lower their tariffs on indus- tion in the early 20th century and For Brazil, the rise of regional eco- Destinations Over 300 108 tionalist revival. They note that in lier this year, which tossed out Mr. Ko- BP in the second quarter, more than trial goods in exchange for Euro- contributed to two world wars, ana- nomic powerhouses such as China a fascist, as speakers accused the every election since 2000, Serbs double the year-earlier amount. That pean and American tariff and sub- lysts say. Countries will continue to and India meant new outlets for its Notes: British Airways’ fiscal year ends March 31, 2008; Iberia figures for passengers, fleet and stunica and produced a coalition gov- destinations include franchise partner Iberia Regional/Air Nostrum government of treason for agreeing have chosen democrats over ultrana- accounted for 14% of BP’s total net in- Mr. Dudley’s ability to run the com- sidy cuts on farm products. negotiate bilateral trade deals with goods, diluting the importance of the ernment dominated by Mr. Tadic’s Source: the companies to send Mr. Karadzic to the war- tionalists. Opinion surveys invari- pro-EU coalition. Within two weeks come and 24% of its global produc- pany from outside Russia. Mr. Hay- When China and India demanded each other, such as the U.S.-South Ko- U.S. Rising commodity prices allowed crimes tribunal in The Hague. The ward acknowledged that running a safeguard clause that would allow rea free-trade deal earlier this year. Brazil and other developing nations ably show support for joining the of taking office, Mr. Karadzic had tion. Second-quarter revenue rose protests were organized by the ultra- 52% to $110.9 billion. TNK-BP from outside Russia was “not them to raise tariffs on key crops such Trade diplomats agreed, how- to push the U.S. harder on subsidies. EU at about 70%. Tuesday’s turnout been arrested and arraigned for extra- nationalist Serbian Radical Party, was relatively small compared with Mr. Hayward was speaking five sustainable for years.” as cotton, sugar and rice if they could ever, that Tuesday’s failure show- But Brazil, whose agriculture ex- dition to the International Criminal the second-largest in parliament. previous pro-democracy and pro- days after TNK-BP Chief Executive Stan Polovets, CEO of AAR, the show a sudden surge in imports, the cased as rarely before the ascen- ports make up a bigger portion of the Tribunal for the former Yugoslavia. BA, Iberia pursue a merger “The West can’t help us, and they Kosovo demonstrations. Robert Dudley was forced to leave consortium that represents the Rus- two sides couldn’t agree on where to dance of emerging economies, specif- economy than China’s or India’s, even- Serbia’s chief of police con- On Tuesday, EU ambassadors Russia after failing to get his work sian shareholders of TNK-BP, said, set the threshold for an increase in im- ically China, India and Brazil, as trade tually broke with its allies last week, Continued from first page quoted on both the London and the firmed earlier this week that Mr. meeting in Brussels again held off visa renewed. His departure marked a “It’s ridiculous to think he can man- ports that would trigger the clause. powerhouses. Their interests are in- siding with the U.S. and EU by accept- people familiar with the matter. Madrid stock exchanges—that CORRECTIONS & Tadic, as well as other government ratifying a premembership agree- major escalation in the conflict be- age the company from Central Europe The U.S. wanted to set the trigger at a creasingly complex, making any deal ing a compromise deal that capped Industry officials expect the situa- would take full ownership of both car- AMPLIFICATIONS and court officials, have received ment with Serbia until Mr. Karadzic tween BP and its Russian partners, a or any other location outside of Rus- 40% imports surge plus compensa- logistically far more difficult to reach U.S. farm subsidies at $14.5 billion an- tion to worsen significantly this win- riers. A name hasn’t been decided. dozens of threats since Mr. Karadz- is delivered and The Hague tribunal group of billionaire businessmen led sia.” tion in other markets. China and India than in the days of Western economic nually. That made little difference in ter, when reservations made months Although final terms haven’t ic’s arrest, including death threats. prosecutor has given a formal as- by of . —Andrew Osborn wanted a 10% trigger point. dominance, diplomats say. the end, once China broke its tradi- ago are gone from airlines’ bookings been set, the plan is to divide owner- Ayan Mukerji is head of Euro- A Radical party legislator also pub- sessment on Serbia’s cooperation. There are widespread doubts as to contributed to this article. Trade experts watching the talks Brazil and India’s status as trade tional silence in global trade talks and and weaker underlying demand be- ship in the new company roughly ac- pean operations for Indian technol- said none of the major players ap- powers grew along with their econo- dug in its heels over the weekend. comes clearer. BA and Iberia have al- cording to the market values of BA ogy company Wipro Ltd. A Market- peared to see enough gains in a settle- mies and exports, but their enthusi- —John Lyons in São Paolo ready announced moves to cut costs and Iberia, people familiar with the place article on Tuesday about In- ment to be willing to make the signifi- asm for Doha waned after 2001. and Paul Beckett in New Dehli and scale back capacity increases matter say. That means BA share- dian technology companies’ efforts INDEX TO BUSINESSES cant sacrifices they would have to sell With foreign investors pouring contributed to this article. they had planned earlier this year. holders would get a stake of be- to expand in Europe misspelled his Iberia Chairman Fernando Conte tween 65% and 70%, and Iberia last name as Mukeherji. This index of businesses mentioned in today’s issue of The Wall Street Journal Europe is intended to include all significant references to companies. First reference to these companies appear in said that while both BA and Iberia shareholders would get the rest. boldface type in all articles except those on page one and the editorial pages. are in strong financial condition, “of The airlines’ two brands would Developers Diversified Realty course, we are not immune to the remain, and the carriers would oper- Corp. plans to invest 70% of develop- AAR.2...... Cie. Financiére Richemont.3 . General Motors...... 5,23 Legal & General.18...... Northrop Grumman.6...... Sony.6...... Alcatel CEO and chairman resign overall situation and oil prices.” ate fairly independently on a daily ment assets over the next seven Acron.19...... Citadel Investment Group 17 Geox.7...... Lehman Brothers Holdings Northwest Airlines.31...... Sovereign Bancorp.4...... The two carriers were also basis. The pair expect to get signifi- years outside the U.S., up from the Air France-KLM.17...... Citigroup...... 17,22 GMAC.5...... 17...... Novartis AG.6...... Steiner-Prematechnik-Gastec Continued from first page driven by the successful experience cant cost savings in areas such as current 10%. A Property Report arti- AK Group International.9.... . Clariant.7...... Goldman Sachs Group.18.... . Lone Star Funds.17...... OAO .5...... 4...... last year, according to UBS Invest- Negative results of already-merged European rivals: plane purchases, catering, and other Akzo Nobel...... 7,18 Coca-Cola Co..27...... Government of Singapore Lufthansa.17...... Oracle.5...... Tata Motors.23...... cle on July 23 about the company in- ment Research. Fears of a recession Alcatel–Lucent reported its sixth consecutive quarterly net loss Franco-Dutch Air France-KLM SA supplies. They also expect to be able correctly implied that Developers Alcatel-Lucent.18...... Colgate-Palmolive...... 5,18 Investment.22...... LVMH Möet Hennessy Louis Proton Holdings.23...... Teck Cominco.20...... in the U.S. are worsening the situa- and Germany’s Deutsche Lufthansa to coordinate their networks better. Alcoa.3...... Commonwealth Bank of HBOS.21...... Vuitton.3...... Temasek Holdings...... 20,22 Diversified is planning to lift its in- Ranbaxy Laboratories.. . 7,23 tion for equipment makers as tele- Net loss Daily share price on Euronext Paris Alfa Group.2...... Australia.23...... HDFC Bank.23...... Malayan Banking.20...... Ratiopharm.6...... Thales.7...... AG, which in 2005 bought Swiss In- BA, which focuses largely on mar- ternational exposure to as much as Ambac Financial Group 18,22 Continental Airlines.18...... Heritage Fund Management Marks & Spencer.18...... Reliance Infrastructure.23... . ThyssenKrupp.6...... com operators put planned network In billions of euros Tuesday’s close: Œ3.91, up 2.1% ternational Air Lines Ltd. “We’ve kets in North America, Asia and Af- 70% of all assets. American International Delta Air Lines...... 29,31 upgrades on hold. learned from how they were able to .7...... Martha Stewart Living Rolls-Royce PLC.4...... TNK-BP.2...... 0 Œ9 rica, has one of the world’s most Group.17...... Deutsche Bahn.4...... Hermès International.3...... Omnimedia.7...... .19...... Top Tone Media Holdings.7. . The departure of Ms. Russo and build revenue,” said BA Chief Execu- valuable bases at London’s con- Amgen.18...... Deutsche Lufthansa.5...... Honda Motor.6...... Maruti Suzuki.23...... Royal Bank of Scotland Toshiba.7...... Mr. Tchuruk could alter the careful –0.5 8 tive Willie Walsh. “This will allow us gested Heathrow Airport. Iberia is AMR...... 1,29 Developers Diversified Iberia Líneas Aéreas de Matsushita Electric Toyota Motor...... 6,23 Group...... 18,21 Franco-American management bal- –1.0 7 to compete more effectively against one of the largest players in the lu- ArcelorMittal...... 6,18 Realty.2...... España...... 1,17,18 Industrial.7...... Royal Bank of Scotland PLC UAL...... 18,29 ancing act that the company has them and the big global players.” crative market between Europe and Atos Origin.7...... DLF.23...... ICICI Bank.23...... MBIA...... 18,22 .17...... UBS...... 17,18,19,21 –1.5 6 Banco Santander (Spain).4. . DSM.18...... Informa.5...... McGraw-Hill.20...... Salzgitter.6...... U.S. Steel...... 6,18 tried to maintain. Mr. Walsh said the merger had Latin America. Its hub airport in 5 Bank Internasional Dubai Aerospace Enterprise Interpublic Group.27...... .19...... Sanofi-Aventis.6...... Valero Energy.7...... “I just thought it was time for the –2.0 been made easier after the U.S. and Madrid has recently expanded, and Indonesia.20...... 4...... Intesa Sanpaolo.4...... Merrill Lynch.... . 17,18,20,22 SAP...... 5,18 Volkswagen.23...... company to have a more indepen- –2.5 4 the European Union last year agreed the two top executives said the carri- Bank of China.7...... eBay.4...... JetBlue Airways.29...... Microsoft.5...... Schweizerhall Holding.6...... Wipro.2...... Barclays...... 17,18,22 Endeavour International.9.. . dent leadership that doesn’t come to partially deregulate air travel be- ers would cooperate to develop it Johnson & Johnson.27...... Mizuho Financial.23...... Security Capital Assurance WPP Group.27...... –3.0 3 BlackRock.17...... E*Trade Financial.17...... from one side or the other,” tween the two huge markets. for joint operations. J.P. Morgan Chase.19...... Morgan Stanley.22...... 22...... XL Capital.22...... 2Q 3Q 4Q 1Q 2Q A S O N D J F M A M J J Blackstone Group.5...... European Aeronautic Ms. Russo said in the interview. The two airlines said that both Separately, the talks with Ameri- Khazanah Nasional.23...... Mubadala Development.4.... . Siemens.3...... XL Capital Assurance.18...... 2007 '08 2007 '08 Boeing...... 4,6 Defence & Space...... 4,6 Kookmin Bank.23...... National Australia Bank.23 . Sinotrans Shipping.7...... Yes.6...... When the merger was an- boards supported a deal but that it can have hinged on how many takeoff BP...... 2,18 Financial Guaranty Sources: the company (net loss), Thomson Datastream (share price) “Nucleus Policy for Korea Investment.22...... Nomura Holdings...... 20,23 Skanska.28...... ZAO Holding.5...... nounced, the company took pains to would take several months to agree and landing slots at Heathrow the car- Bradford & Bingley.21...... Insurance.22...... divide influence equally between the on the terms and finalize a joint busi- riers would be willing to surrender to Investment” Conference Bristol-Myers Squibb.6...... Ford Motor.5...... British Airways...... 1,17,18 Fortress Investment Group French and American sides. ness and integration plan. win regulatory approval. In the past, Alternative & Central European Media .20...... Ms. Russo, an American, became ers are more protected by European while the Franco-American firm was The announcement comes as two regulators demanded more slots Enterprises.7...... Gas Natural SDG.7...... INDEX TO PEOPLE labor laws, sparking some resent- distracted. U.S. carriers—Delta Air Lines Inc. than American and BA were willing Decorrelated Solutions CEO, but the company was based in China Investment.22...... Gazprom.19...... Paris and Mr. Tchuruk remained ment between their two camps. Alcatel-Lucent was forced to cut and Northwest Airlines Corp.—are to surrender. The carriers now be- Chrysler.5...... General Electric.4...... This index lists the names of businesspeople and government regulators chairman. From the day the Alcatel-Lucent prices and even take some losing con- finalizing a merger and awaiting reg- lieve the price would be lower be- Now available for who receive significant mention in today's Journal. In its statement Tuesday, Alcatel- merger was announced it was under tracts last year to keep a foothold in ulatory approval to create the cause more carriers now serve the independent IFAS FREE daily access For more people in the news, visit Lucent said it planned to overhaul its a global spotlight, especially after important emerging markets such as world’s largest carrier by traffic. BA U.S.-Heathrow market, but rivals distributors. 1 1 CareerJournal.com/WhosNews board in order to bring in fresh blood past international alliances involv- China and India. The company issued and Iberia together would be the have said they will fight tighter links to WSJ.com and reduce its size. Ms. Russo will ing U.S. companies have faltered. repeated revenue and profit warn- world’s fifth-largest carrier by traf- between American and BA. 3 October If you bought today’s paper from leave by year end with a payoff of as When the Alcatel-Lucent merger ings, losing the confidence of some fic, according to Ascend Worldwide Heathrow is the focus of another Al Muhairi, Waleed Al Dudley, Robert.2...... Lindsay, Don.20...... Russo, Patricia.18...... Le Château de Limelette, a retail outlet, simply register at: much as Œ6 million ($9.45 million, was announced, Ms. Russo and analysts and shareholders. Ltd., an aviation consulting com- potential cross-border merger: Luft- Mokarrab.4...... Fridman, Mikhail.2...... Lun, Kitty.27...... Saenz, Alfredo.4...... Mr. Tchuruk touted the link-up as a pany in London, if the Delta-North- hansa recently indicated it will take wsj.com/reg/coupon Archer, Howard.10...... Fujimori, Rogerio.3...... Mayo, Mike.17...... while 70-year-old Mr. Tchuruk will Pressure on Ms. Russo increased Ottignies, Belgium Schorr, Glenn.17...... British Midland or renew at: wsj.com Arnault, Bernard.3...... Furman, Jason.8...... Mazzaferro, Aldo.6...... Schumacher, Dirk.8...... leave Oct. 1. way to gain scale and cut costs at a last fall, when French newspapers west deal is completed. over closely held Today's code is: EUROPE-J-576 Barr, Malcolm.10...... Golubovic, Zagorka.2...... Miranda, Ken.23...... Siekaczek, Reinhard.3...... One director, Henry Schacht, who time of immense change in the indus- were awash with reports that the BA has held a stake of at least 9% Airways Ltd. by exercising a call op- [email protected] Batekhin, Sergei.5...... Goodwin, Fred.18...... Morgan, Gareth.19...... Smith, Matthew.10...... preceded Ms. Russo as CEO at New try. board was growing concerned about in Iberia since the Spanish carrier tion it has held for many years. Bernstein, William J. 1,31 Graham, Stuart.28...... Morozov, Denis.5...... Strzhalkovsky, Vladimir . 5 Jersey-based Lucent, will resign Telecom operators such as Veri- the company’s woes. was privatized in 1999. The airlines Air France-KLM was the first ma- Contact: THE WALL STREET JOURNAL EUROPE (ISSN 0921-99) Bhatia, Prashant.17...... Grandin, Michael.20...... Mukerji, Ayan.2...... Sugar, Ronald D..6...... from the board immediately. Observ- zon Communications Inc. and Alcatel-Lucent on Tuesday an- have cooperated closely for a decade jor merger of airlines across borders Boulevard Brand Whitlock 87, 1200 Brussels, Belgium Bhavsar, Raju.23...... Griffin, Andrew.18...... Nakada, Masafumi.20...... [email protected] Surma, John P..6...... ers said that it is likely the future Spain’s Telefónica SA were also con- nounced a Œ1.1 billion loss for the sec- on flights, and are both members of and was made possible by integra- Telephone: 32 2 741 1211 FAX: Business: 32 2 732 1102 Bixby, Robert.8...... Gueroult, Emmanuel.21.. . Neubürger, Heinz-Joachim Tague, John.29...... News: 32 2 741 1600 Editorial Page: 32 2 735 7562 board will pay less attention to na- solidating, so gear makers had to fol- ond quarter compared with a Œ586 the Oneworld airline alliance. Last tion of the European Union’s airline Bryant, Richard.20...... Halff, Antoine.3...... 3...... Tanona, William.18...... The Wall Street Journal Europe SUBSCRIPTIONS, inquiries and address changes to: Brzeski, Carsten.8...... Harbison, Peter.4...... Nichols, Keith.7...... tional allegiances. low suit to try to maintain negotiat- million loss a year earlier. The loss in- year, BA explored the possibility of market and relaxation of aviation is read every day by 27,000 Telephone: +32 2 741 1414 International freephone: 00 800 9753 2000 Tchuruk, Serge.18...... E-mail: [email protected] Website: www.services.wsje.com Bush, Wes.6...... Harvey-Samuel, Timothy O’Neal, Stan.18...... “A new boss coming from the out- ing power with customers. cluded a Œ810 million goodwill write- taking over Iberia together with U.S. treaties between EU countries and students at 180 top business Thorne, Peter.18...... Advertising Sales worldwide through Dow Jones Callow, Julian...... 1,31 .21...... Ong Boon Leong.23...... side will be able to start from scratch Right away, Ms. Russo found her- down related to one of the compa- investment fund TPG Capital LLP and the U.S. schools and university International. Frankfurt: 49 69 971428 0; London: 44 207 842 9600; Chin, Clare.23...... Hayward, Tony.2...... Pinkney, Mike.28...... Uenoyama, Makoto.7...... Paris: 33 1 40 17 17 01 campuses across Europe, a Chin Youngwook.22...... Hofmann, Thomas.5...... Polegato, Mario Moretti 7 Villaseca, Rafael.7...... and ignore nationalistic concerns,” self struggling to integrate the firms. ny's wireless divisions. Revenue de- Spanish investors, but the talks British Airways shares closed Printed in Belgium by Concentra Media N.V. Printed in Germany by Dogan von Pierer, Heinrich.3...... program supported by: Media Group / Hürriyet A.S. Branch Germany. Printed in Switzerland by Chong Sui San.23...... Julius, Russell.21...... Polovets, Stan.2...... one person close to the board said. The expected cost savings, especially clined 5.2% to •Œ4.1 billion, hurt by ended when Caja Madrid, a Spanish up 14 pence, or 6%, at 248.5 pence Zehnder Print AG Wil. Printed in the United Kingdom by Newsfax International Coben, Craig.21...... Kaerhoeg, Kenth.27...... Popov, Alexander.5...... Vukadinojic, Ilya.2...... Culture differences between the in research and development, were the dollar's weakness in relation to bank and one of Iberia’s biggest share- ($4.96) in London on Tuesday. Ibe- Ltd., London. Printed in Italy by Telestampa Centro Italia s.r.l. Printed in Spain Whitney, Meredith.17...... by Bermont S.A. Printed in Ireland by Midland Web Printing Ltd. Printed in Israel Cook, Ian.5...... Kagermann, Henning.5.... . Prior-Wandesforde, Robert American and French interests at the much more difficult to wring out the euro. holders, blocked the deal. The bank ria shares rose 34 European cents, Wilkerson, Russell.4...... by The Jerusalem Post Group. Printed in Turkey by GLOBUS Dünya BasInevi. Crosby, James...... 10,19 Kapadia, Ranjit.7...... 10...... said on Tuesday that it supported the or 21%, to Œ1.98 ($3.12) in Madrid. Winzenried, Rainer.20...... company have also emerged during than expected. —David Gauthier-Villars in Paris Registered as a newspaper at the Post Office. Dahl, Andreas.28...... Kirsch, David.3...... Proia, Gina.5...... —Santiago Perez, Christopher Trademarks appearing herein are used under license from Dow Jones & Co. Dinallo, Eric.18...... Kleinfeld, Klaus.3...... Raghavan, Viswas.21...... Yamashita, Etsuko.10...... the past two years. More job cuts Alcatel-Lucent competitors such and Sara Silver and BA merger, an Iberia spokesman said. © 2008 Dow Jones & Company All rights reserved. were made in the U.S. operations as Telefon AB L.M. Ericsson went on BA and Iberia said they are look- Bjork and Paulo Prada Editeur responsable: Daniel Hertzberg M-17936-2003 Doctoroff, Tom.27...... Kodaloglu, Aydan.9...... Richman, Andrew.20...... Yearsley, Ben.19...... Joann S. Lublin in New York Dolan, Brian.19...... Lauder, Ronald S..7...... Rose, Stuart.18...... Zhang, Frank.27...... than in France, mainly because work- the attack, trying to steal customers contributed to this article. ing to create a joint holding company— contributed to this article. 30 WEDNESDAY, JULY 30, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. WEDNESDAY, JULY 30, 2008 3 PERSONALJOURNAL:Gadgets LEADING THE NEWS

MOSSBERG’S MAILBOX INNOVATION WSJ.com Oil’s hot streak looks 7 7 Siemens wants damages Transferring some data Cameras bring Games Why one tech manager against Reinhard Siekaczek, a Mr. Kleinfeld has denied any to be over, traders say Claims are planned former midlevel telecom executive wrongdoing. “I have great faith in the at Siemens. The court handed Mr. German judicial system, and that is By Neil King Jr. from Palm to BlackBerry up close and personal has Olympic anxiety against ex-officials; Siekaczek a two-year suspended whyIamnotconcernedaboutthisde- Crude-oil futures : HOW do I transfer ITH THE Olympics, HE OLYMPICS fill sentence for funneling Œ49 million velopment,”hesaidinawrittenstate- Is oil’s meteoric rise finally burn- Daily settlement price on the contact and calendar NBC is gearing up many people with stake in telecom sold into slush funds between 2002 and ment Tuesday. Alcoa, which hired Mr. ing out? continuous front-month contract data from the Palm to provide 3,600 inspiration and na- 2004 to bribe potential customers Kleinfeld last year and promoted him A consensus is emerging among Q W T Siemens Tuesday: $122.19 a barrel, down $2.54 devices at our small hours of coverage with an tional pride, but the AG will seek financial around the world. to chief executive in May, oil traders and analysts that it has, company to the new Black- arsenal of digital gadgets. games make Cathy Mc- damages from 11 former top execu- Prosecutors in more than said in an accompanying weeks after some of them were say- $160 Berrys we are getting? The Dive-Cam is a high- Clain anxious. Ms. Mc- tives, including current Alcoa Inc. 10 countries, including the statement that it “sought ing oil could roar above $150 a barrel. A: There are several definition camera that Clain is responsible for Chief Executive Klaus Kleinfeld, ac- U.S., are investigating Sie- and received extensive in- The market has taken on a distinct ways to do it, but I’d sug- moves down a clear plastic maintaining her compa- cusing them of failed oversight amid mens for alleged bribery, formationregardingtheSie- chill in that period, with funds look- 140 gest using Microsoft Out- tube, hitting the water at ny’s computer network. an unfolding bribes-for-business and German authorities mens matter” before hiring ing to sell oil futures outnumbering scandal. alone have a list of nearly look as an intermediary, be- the precise moment as the Corbis And this year, footage of Mr.Kleinfeld.“Alcoacontin- those seeking to buy for the first time The German conglomerate also 300 suspects. Munich-based ues to monitor the situa- iStockphoto cause both Palms and Black- Press Associated diver. The Dive-Cam was put the Games will be since early 2007,and most of the long- 120 Berrys can synchronize together by inventor Garrett streamed over the Internet. Ms. McClain antici- saidTuesdayitwillsella51%stakeina Siemenshas flagged Œ1.3 bil- tion,andbelievesnofurther term money betting that oil prices data with Outlook. So, I would sync your Palms to Brown, creator of the Steadicam floating camera sys- pates that many people will try to watch the Games lion in suspicious transac- comment or action is war- will continue to sink. Outlook, and then sync the BlackBerrys to Outlook tem. Mr. Brown also helped create the Moby-Cam, a while at work and she’s afraid the network will By Mike Esterl in Frankfurt tions between 2000 and ranted or necessary at this U.S. benchmark crude, which fell 100 2006, with about a third of time,” it added. on the same computers. The data that had once submarine-mounted camera that tracks swimmers; crash and bring business to a halt. and David Crawford in Berlin $2.54, or 2%, to $122.19 Tuesday on 3 11 18 25 been on the Palms will now be on the BlackBerrys. and the Fly-Cam, for rowers and kayakers. But NBC that amount tied to its tele- Klaus Kleinfeld A lawyer for Mr. von the New York Mercantile Exchange, July struggling telecommunications- com-equipment business. Pierer, who resigned as Sie- has now declined 16% since hitting its No special software is needed for this. Both devices said most fun, perhaps, are the “point-of-view” Source: Thomson Reutuers via Need additional information? WSJ.com subscribers equipment business to Gores Group come with built-in software for syncing to Outlook. shots taken by “lipstick cameras” that place viewers can read more about the world of technology in Siemens said Tuesday it is assert- mens’s chairman last year, said his cli- record high of $145.29 a barrel July 3. WSJ Market Data Group —Walter S. Mossberg alongside the athletes. —Associated Press business, at WSJ.com/BizTech. LLC, a U.S. private-equity firm, in a ingclaims for damages against11 indi- entwilldefendhimselfagainstthealle- Oil remains 56% above prices a year continuing shake-up at Europe’s larg- viduals who belonged to its corporate gations. Mr. Neubürger, who left Sie- ago. est engineering company by revenue. executive committee between 2003 mens in 2006, declined to comment Reasons behind the oil market’s nosticators who have insisted for Siemens didn’t disclose the financial and2006.Itsaidtheindividualswould Tuesday. Messrs. von Pierer and Neu- sudden slump include a sharp weak- months that emotion and speculative termsbutsaidrelated costswillcause be given an opportunity to state their bürger have denied any wrongdoing. ening of demand and growing gaso- froth were sending prices aloft more “a substantialfinancial impact” inthe positions before legal action is taken. And then pick up again with the graf line stocks in the U.S., rising infla- than the fundamentals of supply and quarter ending in September. “The company bases its claims on starting “Munich prosecutors already tion in Asia, and easing worries over demand. The bears predict crude The equipment business, which breaches of their organizational and have launched civil proceedings...” Iran. Added up, they have simply prices will likely hover around $120 a has about Œ3 billion ($4.7 billion) in supervisorydutiesinviewoftheaccu- Munich prosecutors already drained the upward momentum barrel through the end of the sum- annual revenue, formed part of a sations of illegal business practices have launched civil proceedings from the market. mer, before declining closer to $100 a Making photo collaboration more inviting much bigger telecom unit that trig- and extensive bribery that occurred against Messrs. Kleinfeld and von “The market dynamics have barrel in the fall. Oil last closed below gered a massive corruption investiga- in the course of international busi- Pierer and other former board mem- shifted,” said Antoine Halff, deputy $120 a barrel in early May. made by its official re- I missed having the abil- tion at Siemens in late 2006. The tele- ness transactions,” Siemens said. bers for failed oversight. head of research at Newedge USA in The world’s overall spare capac- Shutterfly Share lease on Aug. 12. For ex- ity to post my own videos on com unit has since been dismantled, In addition to targeting Mr. Klein- Theprosecutorsalsohavenamed New York. ity remains unusually tight, at less ample, a few features thesitebutsearchedforclips with Siemens transferring parts to feld, who resigned as chief executive three former management board Perhaps the best glimpse of the than two million barrels a day—a fact is user-friendly; stuttered or didn’t work on YouTube, Google and Ya- joint ventures or selling them out- ofSiemenslastyear,Siemensispursu- members—Mr. Neubürger, Thomas changed sentiment can be seen in that is likely to keep the market on the first time around. hoo using a built-in tool that right as it focuses on energy, health ingcivillawsuitsagainstformerchair- Ganswindt and Uriel Sharef—as traders’ prices for oil far into the fu- edge until supplies begin to loosen wait for final version One photo that I added to easily adds videos to the site. care and industrial automation. manHeinrich von Pierer,former chief criminal suspects during the course ture. In late May, contracts reaching more. the top of my page froze Ipostedascenefromthetele- The moves also come after a Mu- financial officer Heinz-Joachim Neu- of the bribery investigation. Messrs. out to 2016 were all selling for more The U.S., which consumes nearly By Katherine Boehret when I tried to open it for vision series “Mad Men,” nich court on Monday delivered a bürger and eight other former man- Ganswindt and Sharef also have de- than the current price, which was a fourth of the world’s oil, has seen a editing, and embedded alongwitha“SaturdayNight criminal verdict of breach of trust agement board members. nied any wrongdoing. then around $130 a barrel. That trend sharp drop in demand as Americans MAIL invitations to view video links wouldn’t play Live” skit; thumbnails repre- held until the middle of this month. have cut back on driving. Some ana- friends’ photos on a site like during one test. senting each showed up on The curve since then has sharply re- lysts predict that gasoline use this E Shutterfly, Snapfish or Kodak But it’s worth noting thesite.Iaddedacalendaron versed, so that contracts for oil four month could fall by as much as 5% Gallery can often be as much a has- that some Shutterfly which I noted my birthday to or five years from now are going for over the same month last year. sle as a pleasure. Some services re- Share faults won’t be alert any forgetful friends, Higher sales lift LVMH’s profit less than the current price. “The most fundament change is quire tedious steps to open an al- fixed in early August. It and in a Favorite TradingontheNymexhastiltedto- thatstarting this month, the financial bum. Others ask for forgotten pass- doesn’t yet have the abil- Links section, I By Stacy Meichtry ward short sellers, or those betting markets could no longer ignore the words. And even those albums that ity to upload personal vid- added a list of URLs And Mimosa Spencer that prices will go down, according to physical markets,” said David Kirsch, are easy to open could be hard to get eos in addition to photos; thatI like.Every item the most recent report by the Com- an analyst at the consulting group back to at another time if you can’t instead, users can only on the site can be PARIS—Sales of leather hand- modityFuturesTradingCommission. PFC Energy in Washington, which be- find the original email invitation. add links to videos al- dragged around and bags and jewelry at LVMH Möet The shift has given a jolt of confi- gan predicting in April that prices There has to be a better way. ready available on a pub- rearranged, making it Hennessy Louis Vuitton SA buoyed dence to the crowd of bearish prog- wouldslumpduringthethirdquarter. Now Shutterfly, a leading online lic site like YouTube. Nor easy to switch things profits at the luxury-goods behe- photo service, has integrated sim- does Shutterfly Share up. moth, defying a global financial cri- ple photo sharing have a way to show you Daily emails up- sis that has sapped spending on THE MOSSBERG into personalized when other people last date members of site lower-priced goods. Web sites, which signed on, which groups activity, such as newly Net profit by revenue at the Russian diplomat criticizes SOLUTION serve as a more per- who share Web sites tend posted photos and world’s largest luxury-goods con- manent and collab- to like. The company comments,to keep glomerate beat analyst estimates, hopes to fix these two is- each member in the rising 6.8% to Œ891 million, or orative place to communicate. This Shutterfly (2) McCain’s proposal for G-8 new offering is appropriately titled sues by early next year. loop on site happen- roughly $1.4 billion, in the first half, Shutterfly Share (http://www.shut- I created a site on Shutterfly Share offers users the ability to quickly see ings. the group said in a statement Tues- By Andrew Osborn tive Democratic candidate, who has terfly.com/learn/newshare.jsp), Shutterfly Share called multiple images simultaneously on the site’s home page. When Shutterfly day. Sales, which rose 5.2% to Œ7.8 spoken of engaging with Russia and the sites are free of charge and “middleground” for the Share is released in billion during the period, were tem- —A senior Russian dip- rather than cold-shouldering it. Rus- without advertisements, for now. purpose of staying con- early August, it will pered by a weakened U.S. dollar and lomat warned that Sen. John sian diplomats say they are worried Shutterfly created this nected with a handful of friends tors can do so. After my grumbling build contextual adver- Japanese yen. At constant exchange McCain’s pledge to eject Russia that U.S.-Russia relations could go souped-up arm of its company early who live in various cities around the friends alerted me to my error, we tisements into the Share rates, the group’s sales rose 12%. from the Group of Eight leading na- into serious decline once President this year after acquiring Nexo Sys- country. Our site worked as a com- were inbusiness, butthere aremulti- sites. But early next year, LVMH Chairman and Chief Execu- tions could eventually lead to a George W. Bush leaves the White tems Inc., a company that makes mon spot where we could digitally pleversionsofthesesecuritypermis- the company plans to of- tive Bernard Arnault said he was “re- AFP breakdown in relations between House. straightforward, clutter-free shar- catch up by sharing photos, gossip sions, which can be confusing. fer a premium subscrip- assured by the strong momentum” LVMH beat analysts’ earnings estimates as the global financial crisis appears to Russia and the U.S. In recent years, relations have ing sites that look fresh and clean. and general news about one anoth- Shutterfly Share tries to make tion version of Share that of the first half. be sparing the luxury-goods market. The diplomat, speaking to report- been strained by differing stances on Shutterfly Share caters to groups, er’s lives. I even added news feeds posting photos to the site as easy as terfly says it hopes to have a solution would remove all ads and allow ac- The steady sales growth at ers on condition of anonymity, said Iran’s nuclear program and by U.S. like families and softball teams, as from my favorite sites at the bottom possible by offering various ways to to this by early next year. cess to special features. LVMH, which is considered an indus- Russia could afford to sever rela- plans to deploy elements of its mis- well as to friends, who use the sites of the page. do so—even by simply emailing at- Shutterfly Share organizes re- The final version of Shutterfly try barometer, highlights the resil- Not all its businesses have man- group’s presence in key emerging tions with a country that spurned it. sile-defense system in Eastern Eu- as home bases where photos and Shutterfly obviously wants users tached photos to a special address, cent images on the site’s home page Share will also give users the ability ience of high-priced luxury goods in aged to escape the slowdown, how- markets such as China, Russia, India “We’re ready for any scenario,” the rope. Good working relations be- news can be posted. to be able to quickly start a site, con- which could be helpful for relatives using one of seven display patterns, to view and digitally page through a turbulent global economy. Big- ever. Sales at the wines-and-spirits and the Middle East. diplomat said. tween President Bush and Vladimir Overall, this site-creating pro- densing this process to just a couple who are intimidated by the process including a really great-looking coffee-table photo books that peo- spending luxury consumers have division fell 2% to Œ1.29 billion, com- “Growth in emerging markets The comments underline grow- Putin, Russia’s former president and gram does a nice job, with minimal of brief steps (the process is made of uploading photos. But every per- Film Strip view and Compact view; ple have assembled using their digi- continued to splurge on pricey hand- pared to Œ1.31 billion in the first half should stay robust” in the second ing Kremlin anger at Sen. McCain’s current prime minister, have pre- son who adds photos to the site— work on the user’s behalf, though it faster if you’re already a Shutterfly the former shows a horizontally tal photos. If you like someone else’s bags and jewelry, even as the global of 2007. half of the year and “mitigate a slow- criticism of Russia, a country the vented a serious meltdown, diplo- whether via upload or email—may currently lacks a few useful features member). I chose a category and moving ribbon of photos flowing book, you can (with permission) or- financial crisis has forced them to Some investors question down in the developed world,” presumptive Republican presiden- mats say. More recently, President styleformysite;categoriesincluded only do so if he or she is a member of across the screen, while the latter der a copy for yourself. Dmitry Medvedev has softened Mr. and its security-related member per- cut back in other areas. whether the luxury shopping spree wrote Credit Suisse analyst Rogerio tial candidate has said should be missions can be a bit confusing. Family, Photo Journal and Baby, Shutterfly. Though many people al- condenses multiple photos into Shutterfly Share is a step in the Fujimori in a recent research note. ejected from the G-8 because of dem- Putin’s hard-line rhetoric while keep- Several luxury companies have will last. European luxury shares One of Shutterfly Share’s best while styles ranged from yellow lat- ready have Shutterfly accounts, this small thumbnails so many can be dis- right direction for people who want shown surprising sales growth in re- China is also spurring demand in ocratic backsliding at home and bul- ing foreign policy largely unchanged. have been battered over the past features is its emphasis on photos, tice to artistic black backgrounds. could deter some who just want to played together at once. to share photos in a more perma- cent weeks, including French silk- the group’s fast-growing watches lying abroad. The Kremlin says that The senior diplomat said the year on expectations that slow- particularly the ability to quickly Privacy is a priority for these add photos without becoming a As many as three large, artisti- nent, user-friendly way compared scarf and leather-goods company and jewelry business, where sales such criticism is unfounded and Kremlin wanted the U.S. electorate downs affecting other sectors in the see multiple images simultaneously sites, for good reason, and I pro- member of the service. cally arranged photos can be shown with email invitations. Web sites Hermés International SA and Swit- rose 7% to Œ417 million. that the U.S. is no longer in a posi- to “bear responsibility for its U.S. and Europe will eventually en- on the site’s home page. Various tected mine with a password. But I People who aren’t Shutterfly mem- at the top of each site; I added two builtwithSharedeceivinglylooklike zerland’s Cie. Financiére Riche- LVMH’s share price, which has tion to lecture anyway. choice” in November. He said there other categories of information dot mistakenly assigned each friend bers but are invited to be members of shots of my friends (both members theytookalongtimetocreate.When mont SA, owner of the Cartier and snare the luxury-goods market. fallen more than 20% since the be- As the U.S. election campaign was a risk of relations breaking the page, like links to favorite sites, withlimitedpermissionsas“Contrib- a Share site (by the site’s owner) can of the site) and another of the Wash- Shutterfly cleans up its permissions Dunhill brands. Analysts, however, expect LVMH ginning of the year, closed down has evolved, state TV here has been down if matters were mishandled. calendars or team rosters. But Shut- utors” instead of “Editors.” It turns post anything other than photos, in- ington Monument at sunset. The and makes posting via email easier, LVMH’s apparel and leather- to perform better during the eco- 0.4% at Œ68.03 Tuesday on the Euro- paying close attention to which of “We could reach a moment,” he terfly Share is still in its beta (test- out that Contributors can view, com- cluding comments, calendar entries way these large images were ar- this program will be even better. goods division, which includes the nomic downturn than smaller ri- next stock exchange. The company’s the two candidates is friendlier to warned, “when we could afford to ing) phase and leaves room for im- ment, add and edit their own con- and polls. But photo uploads are re- ranged at the top of my site gave it a Louis Vuitton brand, reported a 6% vals, thanks to a rapid expansion in results were released after the mar- Russia. So far, that appears to be stop discussing the issues that the provements, some of which will be tent, but not that of others; the Edi- stricted to Shutterfly members. Shut- personalized and professional feel. Edited by Walter S. Mossberg rise in sales to Œ2.77 billion. recent years that has anchored the ket closed. Sen. Barack Obama, the presump- Americans are interested in.” 4 WEDNESDAY, JULY 30, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. WEDNESDAY, JULY 30, 2008 29 CORPORATE NEWS MARKETPLACE

TELECOMMUNICATIONS RAILROADS ENGINEERING 7 7 7 A posher domestic first class from United South Africa’s Vodacom Deutsche Bahn and eBay Germany to let firm build fan of United. He said he’s had so United was “notionally” consid- Angeles averaged about half that. kets, launched a $20 million upgrade U.S. carrier sells many problems with the airline— ering one or two other markets for That means that the United p.s. of its domestic 767s that compete bad flights, dirty planes and diffi- p.s. service, but has scrapped that flight on a 757 generated about 20% head-to-head with p.s., refurbishing to sell blacks 6.25% stake to offer discounted tickets three gas plants for Iran space, comfy beds culty trying to get help on the tele- idea during the current oil-price cri- morerevenuepertripthantheUnited the interiors, installing fully motor- OUTH AFRICA’S largest ERMANY’S na- ERMANY’S fed- on its ‘p.s.’flights phone—that he switched his flying sis, Mr. Tague said. 757s flying between Newark and Los ized first-class seats and expanding cellphone-network opera- tional railroad, eral export-con- to American, even though he had ac- Yet p.s. itself was born out of Angeles, even though Newark flights the menus in the front two cabins. Deutsche Bahn cumulated one million miles on bankruptcy cost-cutting. United had many more seats. Mr. Tague says American contends customers S tor by subscribers, Voda- G G trol office has By Scott McCartney com Group, said it will sell a AG, and U.S.-based Inter- cleared the way for an United. Still, he makes an exception had to ground some of its Boeing the two p.s. markets last year had prefer its wide-body, twin-aisle jets 6.25% stake to black investors net auction-house eBay engineering company for the p.s. service. “It’s one bright 767 wide-bodies coming out of bank- “muchstrongermarginsthantherest to United’s single-aisle, narrow-body for 7.5 billion rand ($993.7 mil- Inc. are cooperating to to build three plants Take a Boeing 757, remove 40% spot in their offerings these of our domestic system.” planesbecausethere’smoreroomfor lion). The offer will be open to offer a million train tick- for Iran to liquefy nat- of the seats and give customers lots days,” he said. Indeed, aviation consult- passengers to move about the cabin. selected investors, employees ets at deeply discounted ural gas, a govern- more room, better food and flat P.s. shows that at ing firm Simat Helliesen United says its p.s. jets give custom- and black members of the pub- prices. ment spokesman said. beds. Does that sound like a typical least on some routes, & Eichner Inc. esti- ers more room at their seats than lic and fulfills legislated obliga- The companies say The Federal Office recipe at a U.S. airline these days? domestic U.S. travel- mated that last American. United’s first-class seats tion for companies in the coun- that online bidding of some tickets will begin as low as of Economics and Ex- Hardly, but that’s exactly what ers will pay extra year United had in p.s. are set in 173 centimeters of UAL Corp.’s United Airlines did with for very nice ser- operating prof- room, are55centimeterswide andlie Daniel Pelavin try to sell equity stakes to peo- Œ1 ($1.57). Other special offers—to distant destinations port Control concluded after a 12-month investiga- ple from backgrounds disad- such as Beijing and Moscow—will start with a higher tion that plans by Steiner-Prematechnik-Ga stec two of its busiest, vice, and not just its in Asia, Eu- flat, though at an angle. American’s vantaged under the former apartheid regime. minimum bid. The online auction runs from July 29 to GmbH to build equipment for converting natural gas THE most-important chase the cheapest rope and its first-class seats on its transcon jets Vodacom, jointly owned by South Africa’s Telkom Aug. 10. Some of the proceeds will go to a German associ- to a liquid don’t violate sanctions against Iran. routes, and last fare. (P.s. fares go transcontinen- have 15 centimeters less space and SA and the U.K.’s Vodafone Group PLC, said the offer ation for disabled athletes. Under Chancellor Angela Merkel, Germany has MIDDLE SEAT year they were the as high as $3,235 tal markets. All are6.3 centimetersnarrower.Ameri- will reach as many as 450,000 people in South Africa. Last month, German lawmakers approved a partial cut back trade with Iran as part of Western-led ef- best routes finan- round-trip for other domestic can’s business class seats have less The cost to the company is expected to be about two privatization of Deutsche Bahn, clearing the last hurdle forts to force Tehran to suspend its uranium-enrich- cially for the airline in the country. business class and routes and Latin legroom and are narrower as well. billion rand. —Robb M. Stewart for an initial public offering this year. —Associated Press ment program. —Associated Press In late 2004, United launched an $5,167 for first America had op- Kendrick Bales, a frequent busi- experiment converting all its flights class.) That may erating losses. ness traveler from New York, says between New York and Los Angeles become an increas- For many he’ll pay more for United’s p.s. busi-

and New York and San Francisco ingly important Hall Marcellus coach customers, ness class than a first-class ticket into a premium service it calls lesson as airlines there’s not much on other airlines. With only 100 pas- United p.s. With p.s. flights, half of struggle with high oil premium about the sengers, getting on and off the plane the entire cabin is devoted to first- prices and push ticket coach cabin on p.s. is faster and luggage delivery is of- and business-class seats, and the prices up. To get business flights,exceptfortheex- ten swifter on p.s. flights, and extra space offered to passengers is close travelers to pay more and not sim- ruptcy reorganization, but it didn’t tra legroom. United launched p.s. with space allows him to conduct meet- to what you get on premium interna- ply shift to discount airlines, big air- want to lose “premium” transconti- free meals in coach, but has cut that to ings with colleagues in flight. Mideast chases wealth, from oil to aircraft tional offerings. (P.s. has the only do- lines may have to find ways to offer nental customers—travelers from savemoneyandnowsellssnacks,sand- When he upgrades to first class, mestic lie-flat bed in first class.) premium service travelers will entertainment, finance and technol- wiches and salads. Entertainment in it’s the VIP treatment in Los Ange- trial giant GE. As part of the deal, highly technological aerospace in- “It’s been a home run in all per- value—something different from ogy companies who frequently jet coach consists of low-tech video les, where United lets him wait in Aerospace deals let Mubadala will expand its mainte- Learning to fly dustry. spectives,” said John Tague, Unit- what they can get on the cheapest back and forth between New York shown on small ceiling-mounted TVs, the international first-class lounge nance facilities to support the rising Earlier this year, the aircraft JetBlue Airways Mubadala's key aerospace moments ed’s chief operating officer. ticket, and yet better value than sky- and California and are willing to pay a far cry from Corp.’s then escorts him to the plane right U.A.E. firms build number of GE aircraft engines in the maker said it plans to outsource Many passengers love it. After high domestic first-class tickets. for international-type business- free satellite television. before the door closes. region. n Oct. 2002: Mubadala established. more work to areas protected from visiting clients in San Diego, Carol Andrew Watterson, a partner at class and first-class seats. Kay Grogan of Connecticut was International air service has base for an industry the fluctuation of the U.S. dollar. Ruth took a commuter flight to Los the airline practice of Oliver Wy- So United designed a 757 with surprised not to be offered a meal drawn sharp lines between those The partnership will “create n April 2006: Mubadala buys 35% stake The Gulf is one such region, since Angeles to catch a p.s. flight back to man, says that to weather the cur- roughly the same number of pre- on a six-hour flight sold as “pre- who want the cheapest ticket and many new channels of growth, in- in Italy's Piaggio Aero Industries. By Stefania Bianchi cluding an opportunistic invest- most of its currencies are pegged to New York rather than fly directly rent crisis, airlines are going to have mium seats as in the 767. That left mium service,” and she was un- passengers willing to pay for com- Dubai ment joint venture to invest in high- n Sept. 2006: As part of a consortium, the greenback. home from San Diego on Delta Air to find more ways to simultaneously room for only 72 coach seats. The air- happy with the Mediterranean fort, and Mr. Bales, for one, would return financial assets in an attrac- Mubadala buys a stake in “EADS’ decision is driven by a Lines Inc. or AMR Corp.’s American cut costs and boost revenue—what line made those seats all “Economy chicken salad she purchased. like to see more options for consum- combination of supporting a key cli- IL-RICH PERSIAN Gulf states, tive environment,” said GE spokes- Switzerland's SR Technics. Airlines. A recent flight in first class United did with p.s. Plus”with86centimetersofspacefor “It was horrible. It hardly had ers on domestic flights. “Maybe whose airlines have ordered ent, the aviation infrastructure de- on Delta didn’t come close to what “It’s a great example of finding a each row, 7.6 centimeters more than any greens in it,” she said. “What that split will happen here so that man Russell Wilkerson. n Nov. 2007: Mubadala launches billions of dollars worth of jet- velopment plans for the emirate of she enjoys about p.s. business class. situation where people will pay United’s standard coach seating. does this p.s. mean? This is pre- people willing to pay have some- O For its part, Mubadala, which aerospace arm, buys 100% stake in liners, now plan to leverage their fi- Abu Dhabi and its location in proxim- “On Delta, I was complaining, more for a better seat,” he said. Because of the dominance of busi- mium? It’s a cattle car in the back.” thing nicer,” he says. owns aviation maintenance, repair Abu Dhabi Aircraft Technologies. nancial clout into making parts for ity to the markets of the Middle ‘Where are my headphones? Where “There are select markets around ness-class and first-class seats, and Bothroutes—NewYork-LosAnge- and overhaul firm Abu Dhabi Air- Northrop Grumman and Mubadala those planes. East, Indian subcontinent and Asia, is my legroom?’ ” said Ms. Ruth, the world where you can have these because customers are more willing les and New York-San Francisco— WSJ.com craft Technologies, in a statement agree to collaborate on aerospace As Airbus, Boeing Co. and Gen- which offer the best long-term president of a public-relations firm. kinds of products.” to pay for premium cabins on p.s., have long had “quasi-international said it wants to “work with the and aviation programs. Online today eral Electric Co. struggle with soar- growth prospects,” says Peter Harbi- (P.s. business-class seats have 41 ThenumberofmarketsintheU.S. United averages significantly higher airplanes.” American flies wide- world’s very best partners to de- Hear a podcast with ing oil prices, slowing economies n July 2008: Mubadala signs a son, executive chairman of the Cen- centimeters more legroom than Del- is probably small, however. Airlines average fares on those flights than body 767s on its transcontinental velop and operate businesses that Scott McCartney on premium and squeezed delivery dates, multi- joint-aviation deal with Rolls-Royce tre for Asia Pacific Aviation, a Syd- ta’s domestic first class.) Ms. Ruth needlongflights andlotsofbusiness other domestic trips. In the fourth routes with three classes of service, generate outstanding financial re- services in the air. Does your billion-dollar aircraft orders from and a commercial-finance ney-based consulting group. used to be an “executive platinum” travelers to make premium service quarter, according to government the only domestic markets where it turns.” European Aeronautic De- Abu Dhabi Aircraft Technologies company spring for premium airlines in Abu Dhabi and Dubai, in partnership with GE. It also signs an The partnerships still come with flier at American but switched to offerings work. And in the midst of data,United’saverageticketbetween offers business class and first class fence & Space Co., of which Airbus services when you travel for work? the United Arab Emirates, provide agreement with EADS to make Abu Dhabi Aircraft Technologies’ risks, including soaring inflation. United because of p.s. the current financial crisis, officials New York and Los Angeles was $884 in addition to coach. Rolls-Royce Government figures show that infla- Should it? Join a discussion much-needed investment, cheap la- is a part, and PLC aircraft components. maintenance facilities Robert Brougham, a financier say it is unlikely airlines will be in- round trip, while regular United ser- American,whichcarriesmorepas- tion in the U.A.E. hit a 20-year high at WSJ.com/Travel bor and state-of-the-art facilities. struck similar deals to develop air- from Los Angeles, isn’t generally a vesting in new products. vice between Newark, N.J., and Los sengers than United in transcon mar- of 11.1% in 2007. “While the Middle But the governments in the Gulf craft and engine manufacturing fa- East does offer relatively lower region expect something in return, cilities in Abu Dhabi, Mubadala said will eventually be able to design, de- past, plane manufacturers have costs compared with Western Eu- namely commitments to expand the earlier this month. velop and manufacture complete air- mostly ignored this region.” The rope, the gap is narrowing with dou- Gulf’s airplane-maintenance opera- The EADS partnership, which craft in the United Arab Emirates’ partnerships will also give compa- ble-digit inflation now being re- tions, part of their wider plan to cre- Mubadala expects to generate more capital. nies such as GE and EADS an impor- corded in the U.A.E. for example,” How computer savvy should a leader be? ate sources of wealth beyond oil and than $1 billion of revenue for Mubad- Both the GE and EADS deals will tant foothold in the Gulf’s booming said Mr. Harbison. gas. ala’s aerospace arm over 10 years, significantly boost Abu Dhabi’s aviation industry as aviation mar- By Lee Gomes represents the last generation that ness. He described his day as one per appear to have more of an im- For their part, plane makers Boe- Mubadala Develop- will see the Abu Dhabi company pro- chances of becoming a serious glo- kets elsewhere slow. will be able to claim imperviousness long session checking emails and pact that words on a flickering Last week, ing and Airbus are aware of the con- ment duce aircraft components for Air- bal aerospace player. Should a president—of the to the machines. Judging by the way news alerts, save for the occasional screen. Co., one of the Gulf region’s EADS said in a statement that it sequences of outsourcing too much bus and, eventually, construct en- United States, but even of a com- his self-acknowledged computer il- interruption of a staff meeting or a The president could use his com- most active government-invest- “These deals are recognition wants to deepen ties with Mubadala of their businesses to outside com- ment funds, struck one of the most tire jets. EADS will meanwhile work that this part of the world is develop- because it “is a major player in the pany, for that matter—use a com- literacy is mocked in YouTube vid- sales call. puter time any way he wished: a fa- panies. Boeing outsourced almost Dan Picasso eos, it’s probably a safe bet that his All this was related with pride, vorite blog, YouTube videos, a mind- significant deals along these lines with Mubadala to develop an engi- ing,” Waleed Al Mokarrab Al Mu- development of the Abu Dhabi econ- 70% of work on its 787 Dreamliner puter? Or, are there jobs that are too campaign wishes he were more flu- as though it was what was modern clearing game of Spider Solitaire. with an $8 billion commercial-fi- neering center and research-and-de- hairi, Mubadala’s chief operating of- omy and...one that has the ambition to manufacturers in Japan and Italy, important for the office holder to be ent in technology, especially consid- tial, the time spent retrieving the nance partnership with U.S. indus- velopment facility in Abu Dhabi so it ficer, said in an interview. “In the to become a major player” in the which led to a delivery delay of spending the day deleting spam or executives were doing. His listen- So many of his constituents would more than 12 months. closing pop-up windows in a ering the number of his contempo- ers, though, were struck by how he be doing the same thing at the same coin could be spent much more prof- Outsourcing also hinges on the browser? raries who have taken up the ma- seemed to have no time left in the time, it would be a good way of keep- itably at the office. At least in the- ability to attract skilled technicians. The two U.S. presidential candi- chines without a problem. But any- day to think, which was surely why ing up with the common folk. ory. Abu Dhabi will compete for aviation dates this year, in addition to all one who has ever been flustered by he had yet to realize that he was The severe time rationing is nec- For a president, a computer can Santander says net fell 5%, no deals planned engineers with Dubai, which is also their other, more- a gadget, or who has watched a teen- spending his day consuming the in- essary because a computer, far be a similar distraction. Sure, he PORTALS significant differ- ager work a cellphone, won’t be un- formation version of junk food. from making you more productive, could spend five minutes reading an By Christopher Bjork building up it aerospace activities The Spanish bank said it set in the troubled U.K. banking market. ness and its insurance operations, a under the framework of Dubai Aero- ences, also present sympathetic to Sen. McCain. If I were the chief of staff at the instead loads you down with things especially insightful blog post from aside provisions to cover rising loan Santander said U.K. unit Abbey took a move that would increase the bank’s space Enterprise. Rising prices may two contrasting perspectives about It’s a fair question to ask: Can White House, I would have some to do, and it’s important for the ma- one of his core constituencies. But it MADRID—Banco Santander SA defaults in Spain and Latin America roughly 26% share of net lending in war chest for potential deals. deter prospective candidates. the extent to which personal-com- someone who never touches a com- sort of computer, not in the Oval Of- chine to know who is boss. Most would be better for him to be spend- posted a 5% decline in second-quar- while posting strong growth at U.K. the country in the first half, more than But Mr. Saenz said management “If there aren’t enough skilled en- puter technology can be integrated puter truly be in touch with what is fice itself, since it wouldn’t match people don’t have the luxury of off- ing the time having coffee with the ter net profit because of lower capital unit Abbey. double its normal market share. will focus on integrating assets such gineers at the right price, some facil- into someone’s everyday life. Sen. happening in the world? The com- the furniture, but one office away. loading their email-reading chores person thinking the thoughts that gains, and it squashed speculation Net interest income rose 14% in The bank affirmed its full-year as Brazil’s Banco Real, which it ities will have to adjust supply ac- Barack Obama lives the life of every puter industry has worked very I’d push the president to spend, say, to a group of competent assistants. the world will be blogging about a that it remains on the lookout for the quarter to Œ4.46 billion from target of increasing earnings per bought last year as part of the take- cordingly,” said Mr. Harbison. modern road warrior, checking a hard over the past few decades to 20 minutes a day on the machine— It’s an office perk that presidents week or a month hence. deals after a recent shopping spree. Œ3.91 billion. share by 15%. “We’re clearly beating over of Dutch lender ABN Amro Hold- However, Mubadala says it is BlackBerry as easily as he checks his cause us to suspect as much. But whether he would complain about are still important enough to de- With the world at his beck and The Spain-based bank, one of Eu- The bank continued to expand targets,” Chief Executive Alfredo ing NV,and some European consumer- aware of the challenges. “We’re big wristwatch and decompressing in what about the opposite question: the limit or about the mandated serve. call, a president is one of the few rope’s biggest, said net profit to- loan volumes in Latin America, Saenz said. finance assets it bought earlier. fans of the walk before you run phi- his downtime with an iPod. That lat- Does anyone who spends all day in time. Everyone has heard the puzzle people lucky enough to be able to taled Œ2.52 billion ($3.97 billion), while in Spain, a weaker market, the The bank, which recently agreed The bank has also been making losophy,” said Mr. Al Muhairi, who ter preference is one of the few he front of a PC, forging a river of data The president wouldn’t need to about whether Bill Gates, upon walk- learn more off-line than chained to a down from Œ2.66 billion a year ear- bank boosted lending profitability to buy U.K. lender Alliance & Leicester acquisitions further afield. Earlier hopes that Mubadala’s aerospace ac- shares with the current president, posing as information, have any worry about his email inbox; a staff ing to work, should bother to stop keyboard. The 20-minute limit lier, though still beating analyst ex- to offset reduced demand for credit. PLC for £1.3 billion ($2.6 billion), put a this year it purchased a 20% stake in tivities will contribute between 1% who is known to take along an iPod, time to think? would be standing by ready to han- and pick up a quarter he saw on the would be good for the country. The pectations of Œ2.41 billion. The year- Santander’s strong balance sheet lid on speculation that it would seek Philadelphia-based Sovereign Ban- to 2% of Abu Dhabi’s gross domestic preloaded by his White House staff A group of technology reporters dle it. Memos, position papers, sum- sidewalk. Yes, the quarter is bright rest of us are stuck reading emails— earlier figure was inflated by a Œ566 has allowed it to benefit from a “flight out further deals in the short term. corp Inc. “We have enough on our product in the next 10 to 15 years. with classic rock, on his mountain- once received the CEO of a midsize, maries of newspaper reports, and and shiny, but a careful assessment and picking up quarters. million gain from the sale of a stake to quality,” as clients move money to Santander said it was considering plate to keep us entertained during “Right now we’re figuring out how bike runs. low-tech company eager to impress all the rest, would be delivered via of the situation would reveal that, in Italy’s Intesa Sanpaolo SpA. lenders perceived as safe, particularly selling its asset-management busi- several quarters,” Mr. Saenz said. to walk.” Sen. John McCain, by contrast, his listeners with his connected- printouts, since words on printed pa- for someone of that earning poten- Email [email protected]. 28 WEDNESDAY, JULY 30, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. WEDNESDAY, JULY 30, 2008 5 THE PROPERTY REPORT CORPORATE NEWS Skanska prospers in U.S., but stock slides SAP’s profit tumbles 9% Norilsk holder suggests broader Stockholm stock market, taking write-downs on projects in Œ1.53 billion. Strzhalkovsky for CEO Firm may surprise which has fallen 23% in the same pe- the U.K., totaling 570 million kronor Acquisition hits net, SAP SAP, whose programs help com- A WSJ NEWS ROUNDUP riod. The stock closed 0.6% higher at in the first two quarters. Mr. Dahl Net profit, in millions panies do back-office work such as giving Interros effective control market by repeating 78.50 Swedish kronor ($13.06) on says he would “not be surprised to but results, forecast payroll, inventory management and ZAO Interros Holding, the major over the board. Tuesday in Stockholm. see more write-downs.” Œ800 accounting, said its closely watched shareholder of Russian mining gi- ’s , which success in New York Last week, the company re- Analysts also warn of a squeeze still please analysts software and software-related ser- ant OAO Norilsk Nickel, has pro- owns a 25% stake in Norilsk, at- ported relatively strong results. For in Skanka’s operating margins, due vice revenue rose 21% to Œ2.06 bil- posed that the head of Russia’s state tacked the results, saying the board 600 By Sui-Lee Wee the first half of 2008, Skanska’s reve- in part to the rising cost of steel, cop- By Archibald Preuschat lion. tourist board and KGB veteran did not represent the interests of all nue from U.S. general-building activ- per and aluminum. Mr. Dahl expects “We are watching the market Vladimir Strzhalkovsky be the new the shareholders. When Skanska AB secured the ity, which includes construction of margins for earnings before inter- FRANKFURT—SAP AG said its 400 very closely, and from all we can chief executive of the company. Under Interros’s plan, Mr. contract last week to manage the hospitals and schools, rose 11% from est and taxes, to fall to 3.3% for second-quarter net profit fell 9% as see, we can be optimistic,” Co-Chief Interros, the largest single share- Batekhin would serve as Mr. $500 million renovation of New the previous period; construction 2008, from 3.4% in 2007, as there charges related to an acquisition off- Executive Henning Kagermann said holder in Norilsk, with just under Strzhalkovsky’s deputy along with 200 York City’s Madison Square Garden, revenue from U.S. infrastructure could be fewer projects for tender, set a rise in sales. in a CNBC interview. 30%, said the appointment of Mr. Alexander Popov, Interros said. The it was the latest coup for a company projects rose about 8%. The U.S. is which could drive down prices. For Still, the results beat analyst ex- Mr. Kagermann said sales rose in Strzhalkovsky would secure the holding wouldn’t say if Mr. Batekhin that has racked up a string of high- Skanska’s single largest market and 2009, his target is for 2.7%. pectations, and the business-soft- 0 the U.S. in part because companies state’s support as the company bids had been intended as an interim ap- profile projects across the U.S. makes up about 30% of the compa- Still, the company is hopeful it ware company said it expects full- 1Q 2Q 3Q 4Q 1Q 2Q reacted to recessionary fears by in- to become a global mining giant. pointment all along. 2007 ’08 The Stockholm-based company, ny’s total revenue. Skanska re- can escape some of the pressures in year sales and operating margin to vesting in technology. The issue might be discussed at No- The boardroom spat has added one of the world’s largest construc- ported first-half net profit rose 20% Europe by expanding beyond New be at the top of its previous forecast. Source: the company The company said it now expects rilsk’s board meeting Aug. 8, a per- to tensions as the shareholders stall tion firms, also is leading the reno- to 1.96 billion kronor ($326.1 mil- York to other U.S. states, including SAP shares rose 9.8% to close at to reach the top end of its targeted son familiar with the matter said. over plans to enlarge the company. vation of the United Nations head- lion) from a year earlier while sales Garden Madison Square California and Arizona, where infra- Œ37.26($58.66) each on the Xetra ex- range of 24% to 27% growth in soft- “We have begun negotiations Rusal would like to stage a full take- quarters in Manhattan, building a reached 68.6 billion kronor, up 7%. An artist’s rendering of the new Madison Square Garden arena in . structure needs are great. “Califor- change. billion acquisition of French busi- ware and software-related service with other Norilsk stakeholders re- over to create a $100 billion mining new American football stadium for Nevertheless, analysts say inves- Skanska is managing a $500 million renovation project. nia is the eighth-largest economy in “The figures show that the SAP ness-intelligence company Business revenue as well as an adjusted oper- garding Strzhalkovsky’s candidacy giant, while Mr. Potanin has sought the New York Giants in New Jersey tors are concerned. First, while the the world and has 35 million people story fits,” said Landesbank Baden- Objects SA. The company also took ating margin of 28.5% to 29%, both for the post of CEO,” an Interros to fend off a merger by agreeing to and is involved with constructing U.S. market is doing well now, there so the market is like a large country Württemberg analyst Thomas Hof- a Œ24 million charge related to set- at constant currencies. The com- spokesman said Tuesday. an asset swap with metals investor the $2.2 billion transportation hub are signs that that could change. That comes as conditions in from record levels achieved last by itself,” says Stuart Graham, chair- mann, noting that SAP is doing well tling litigation. Additionally, the pany had already raised its margin Although Strzhalkovsky has no . A three-way in the World Trade Center rebuild- “I’m quite negative on the outlook,” Skanska’s home market have year. man of Skanska’s U.S. division. in a difficult market. year-earlier earnings were boosted targets for the year when it re- formal experience in the mining in- merger is also under discussion. ing. says Andreas Dahl, a Stockholm- eroded. Unlike in the U.S., where In a statement last week, Skan- New York, which is investing Germany-based SAP, one of the by a lower-than-usual tax rate of ported its first-quarter results in dustry, Interros said he would “pro- Under Interros’s plan, Mr. Despite those victories, inves- based analyst with Crédit Agricole Skanska focuses almost entirely on ska said the Nordic residential mar- heavily in infrastructure, makes up largest business-software provid- 25.8%. April. vide a balance of interests between Strzhalkovsky would handle govern- tors have been pummeling the com- Cheuvreux Nordic. “What we are commercial and civil construction, ket “is having a negative impact on about 60% of Skanska’s total U.S. ers, competing with U.S.-based Mi- Total revenue rose 18% to Œ2.86 Mr. Kagermann said he is confi- all the shareholders.” ment and public relations, hiring pany’s stock, worried that Skans- seeing now, with the weakening glo- in the Nordic region the company both residential development earn- civil construction revenues, accord- crosoft Corp. and Oracle Corp., said billion from Œ2.42 billion as soft- dent the company will reach its tar- If approved, Mr. Strzhalkovsky and security, while Batekhin would ka’s prospects won’t be nearly as bal economy, we are seeing tax reve- handles mainly residential and com- ings and the potential for starting ing to Citigroup analyst Mike net profit fell to Œ408 million from ware revenue rose 25% to Œ898 mil- get of more than 100,000 customers will take over from Sergei Batekhin, serve as his first deputy in charge of promising amid a slowing economy nues from the U.S. going down, mercial work. And the residential new projects.” The Nordic countries— Pinkney. If the company can dupli- Œ449 million a year earlier. lion. by the end of 2010, up from about who replaced Denis Morozov just a the company’s day-to-day opera- and real-estate downturn. From the which means they won’t spend as market is in turmoil. Finland, Sweden and Norway—con- cate that success in other U.S. mar- The results were hit by Œ118 mil- Sales in the Americas rose 12% to 75,000 customers now. few weeks ago in a boardroom coup tions, Russian daily Vedomosti re- end of 2007, Skanska’s shares have much money on civil construction The company’s order bookings tribute about 42% of revenue. kets, its prospects could be brighter lion in write-downs and other Œ952 million, with sales in Europe, —Simon Kennedy and Klaus Brune for Interros head , ported. fallen 36%, underperforming the projects.” are already starting to slip—albeit In addition, Skanska has been than investors expect. charges mainly linked to SAP’s Œ4.8 the Middle East and Africa up 21% to contributed to this article. BUSINESS REAL ESTATE Ford, GMAC make cuts in leasing New Informa suitor emerges, By John D. Stoll American auto makers have been “Our business plan always in- may include Blackstone UNITED STATES UNITED STATES UNITED STATES And Matthew Dolan forced to revisit their strategy on cludes a certain amount of leasing leasing due to plummeting resale to support Ford sales,” Ford Credit By Dana Cimilluca Informa shares closed up 3.1%, or Palm Springs, California USA The days of easy car leases ap- values of trucks and SUVs, which spokeswoman Brenda Hines said And Kathy Sandler 13 pence, at 437 pence, having come 5 Acre Private Estate pear to be on the wane in the U.S. have long been Detroit’s best-selling Tuesday. “We don’t publicly discuss off an earlier high of 455 pence, giv- Subdivided into 9 Lots Ford Motor and highest-profit models. As con- our leasing forecast.” British publisher Informa PLC, ing it a market capitalization of Gated and Walled with Utilities Co. has informed Ready to Build Private Estates dealers that it is raising the price on sumers abandon those segments The changes affect the Ford F-150 the takeover target of a private-eq- about £1.86 billion. Was $5.5 m US Now $3.45 m US leases of its most-profitable trucks due to high gasoline prices, the re- and Super Duty pickups, and the uity consortium, received a prelimi- A takeover of Informa would be 100% Financing at Bankrates Ford Explorer and Sport Trac SUVs. nary buyout approach from a group one of the largest leveraged buyouts Call Thom (760) 534-6692 and sport-utility vehicles due to the sale value on used models has sunk. www.trevisoestates.com “extreme losses” its lending arm is This hurts vehicle-leasing be- “If you have any customers that including Blackstone Group LP, peo- in Europe since the credit crunch be- taking on these vehicles. cause terms of leases are based on want to lease any of [the affected] ple familiar with the matter said. gan. Informa had been in talks with This move is expected to make an assumed resale value of a vehicle vehicles, the time is now," the memo Informa said Tuesday it had re- Providence Equity, and its consor- Carlyle Group several 2008 model-year trucks and when the lease expires. If the value said. ceived the approach but not a formal tium partners, and Hellman & Friedman SUVs “lease proof,” according to the of the vehicle being leased should During a conference call last bid proposal from the new suitor, , since early company. In other words, prices will fall more than expected, auto lend- week, Ford said that in the second which it didn’t name. July over a possible 506-pence-a- Blackstone is partnering with be so high on these leases, consum- ers are forced to eat big losses. quarter, auction values for 24- and share buyout of the company. That 36-month lease vehicles were down, Dubai World Trade Center, a global buyout group has approached sev- ers will not be willing to agree to Last week, Ford Credit booked a on average, about $2,700 per unit event organizer owned by the invest- eral banks about a debt package for terms, according to a dealer briefed $2.1 billion charge for the second and $2,400 per unit, respectively, ment arm of the government of the deal and has given them until the on the matter. quarter related to money-losing from year-ago levels. Dubai, the people said. end of July to come up with it. Ford’s move comes as its key leases. GMAC will report earnings As for GMAC, “We informed [deal- Informa, the publisher of the Informa publishes more than competitors—Chrysler LLC and Thursday, and could also book deep ers] as of today that as of August 1st, Lloyd’s List maritime newspaper, 2,000 trade publications and sub- General Motors losses given its heavy exposure to Corp.—are also we’re suspending incentivized leas- said talks are continuing with a pri- scription-based information ser- truck and SUV leases. tightening vehicle-leasing terms, or ing in Canada,” spokeswoman Gina vate-equity group including Provi- vices, including academic journals Gulf Shores, Alabama: backing away from the practice alto- In a memo sent via email Monday, Proia said Monday evening. dence Equity Partners Ltd., which and commercial intelligence. It also gether. Chrysler said Friday that its Ford officials informed dealers “due made a provisional £2.15 billion owns market research company Water front property zoned for 225 units, She said GMAC faces “funding chal- credit arm, Chrysler Financial, will to extreme losses Ford Credit is tak- lenges” for lease assets in Canada. ($4.29 billion) takeover bid last Datamonitor, which it acquired for 123 boat slips, and 5000 SF restaurant. GMAC Monterey Peninsula stop financing leases, while ing on off-lease vehicles, it will be GMAC, like auto makers, utilizes month. £502 million last year. LLC, minority-owned by GM, will 10,000 sf Commercial Building Can be built as Resort Hotel or condos. necessary for Ford Motor Credit Com- leases as essentially a two- or three- stop subsidizing leases in Canada. pany to adjust residuals mid-quarter W. Sturgis 678-852-7735 plus-year rent on a vehicle, after Some GM car dealers also said on the following vehicle lines.” which time the buyer returns the vehi- they were told GMAC will no longer Off-lease vehicles are vehicles cle to the dealer and the financing extend auto-lease deals to consum- that come back to the dealer after a company sells the car. Lufthansa sticks by its forecast INVESTMENT PROPERTIES ers with the lowest credit ratings. lease has expired. Typical leases run As of Tuesday, Ms. Proia said The actions at Ford, GMAC and between 24 months and 36 months, GMAC hasn’t announced a similar Located in Pacific Grove California as strike continues in Germany adjacent to Pebble Beach and the Monterey Chrysler Financial take effect Aug. 1. although some leases extend longer. move for the U.S. By Jan Hromadko walkouts are still unforeseeable. Bay Aquarium. Two blocks from the ocean. WATERFRONT DEV. Excellent climate. 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Sales in its and waning demand for air travel, Lufthansa has declined to esti- In the face of rising commodity share. Latin America, Europe/South Pacific the company said it still expects to mate costs resulting from the strike. prices and food inflation, Colgate- Excluding one-time items, earn- and Asia/Africa regional divisions “follow up on last year’s operating re- Ver.di estimates that the costs will Palmolive Co. reported a 19% jump ings increased to 98 cents a share grew by double-digit percentages. sult” of Œ1.38 billion ($2.17 billion). be about Œ5 million a day. Prime Commercial Opportunity Land/Building Las Vegas BULK DISCOUNTED REAL ESTATE in fiscal second-quarter net income from 84 cents a share. 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Visit the website below for more info: Oklahoma. Principles only please. WinStar High per capita income. Assumable 2% http://www.allnewpropertiesinc.com/ The New York company, whose Volume rose 5%. The mean forecast digit earnings-per-share growth in tained decline in the world economy. related to the disposal of a 50% stake Properties Call: Anna 1-940-841-3727. $2 mil bond. $8.9 mil. firm. Princ only. Paul Murad: 702.400.4100 or bulkinvest.php products include its namesake by analysts surveyed by Thomson 2009 with gross profit margin up.” Lufthansa added that continuing in travel operator Thomas Cook. The [email protected]. 610-935-1616 ext 5236 [email protected] [email protected] or 954-347-7913 toothpaste and dish soap, said net in- Reuters was for earnings of 94 cents —Shirleen Dorman strikes in Germany represent an airline is to publish a detailed second- come rose to $493.8 million, or 92 a share and revenue of $3.84 billion. contributed to this article. acute risk, but that the effects of the quarter report Wednesday. 6 WEDNESDAY, JULY 30, 2008 THE WALL STREET JOURNAL. WEDNESDAY, JULY 30, 2008 27 CORPORATE NEWS Sony’s profit slides 47% U.S. Steel profit surges WSJ.com as need sends prices up A posher first-class domestic seat? Making photos Entrepreneurs Cellphone venture, Sony’s results United sells space and comfy beds more inviting By Robert Guy Matthews are reporting strong earnings as de- Make social networking Quarterly revenue Operating profit Net profit strong yen take toll; mand in China, Russia, Brazil and On some ‘p.s.’flights, U.S. travelers are willing to The Mossberg Solution tests work for your business ¥3.0 trillion ¥200 billion ¥200 billion U.S. Steel Corp. posted some of other emerging countries attracts Page 29 Page 30 WSJ.com/IndependentStreet annual forecast is cut its strongest quarterly sales and foreign steel that would have nor- 7 pay extra for very nice service > Shutterfly Share > > 7 earnings ever as surging demand in mally come to the U.S. That exacer- By Yukari Iwatani Kane bates tight supplies—U.S. steelmak- 2.00 100 100 emerging markets let the U.S.’s big- gest steelmaker raise prices. ers can meet only 70% to 80% of do- TOKYO—Sony Corp.’s first-quar- Second-quarter net income mestic demand—and gives domes- ter earnings fell 47% as poor perfor- tic producers such as U.S. Steel a 1.0 0 0 more than doubled to $668 million, mances at its Sony Ericsson mobile- or $5.65 a share, from $302 million, stronger bargaining position with phone joint venture and its digital- or $2.54 a share, in the year-earlier customers. Athletes’ parents get starring role in China camera business outweighed im- period. Sales jumped 60% to $6.74 Steel analysts estimate that sup- proving television and videogame 0 -100 -100 ply will remain tight through the people like Liu Xiang is his relation- 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q billion. Ads appeal to culture results. ’08 ’09 ’08 ’09 ’08 ’09 The results were helped by year, buoying results for all U.S. shipwith his momand dad,”says Mr. Despite finishing a three-year re- steel producers. Goldman Sachs ana- Doctoroff. “This makes him accessi- Note: Fiscal years end March 31 of the year shown Source: the company months of steel-price increases, structuring plan in March, the Japa- which have eased the burden of ris- lyst Aldo Mazzaferro said: “We be- of filial respect, ble to people.” nese consumer-electronics com- ing prices of raw materials on the lieve that strength in steel prices is When it comes to family, Chinese pany has been hurt by a stronger Sony Ericsson mobile-phone busi- the PlayStation Portable device also bottom line. The company has been sustainable as the world will remain but they use actors audiences can have a high tolerance Japanese currency, which reduces ness, of which Sony owns half. Sales contributed to profit. able to make those prices increases short of steel for some time.” for the sappy. Earlier this year, Inter- By Geoffrey A. Fowler the value in yen of its overseas reve- of Walkman-branded mobile The television business nar- stick as emerging-market demand Unlike most of it rivals, U.S. Steel public Group’s Lowe Worldwide, the nue, as well as by rising fuel and raw- phones were strong over several rowed its losses by nearly half to 19 has kept global steel supplies tight. owns most of its raw materials, in- Beijing agency for Johnson & Johnson baby years until recently, but the joint billion yen as sales of Bravia liquid- products,unveiledaTVcampaignfea- material prices, and tough competi- U.S. Steel expects additional cluding iron ore, making it less vul- venture’s primary focus on mid- crystal-display TVs jumped 33%. UPERSTAR hurdler Liu turing the real mother of Deng Yap- tion in key electronics products. price increases, already planned, to nerable to the recent doubling of price to high-end phones hurt the Sony expects to sell 17 million LCD Xiang, a gold-medal hope- ing, a champion ping-pong player, Though Sony said demand for its bolster its third-quarter profit out- iron-ore prices and putting its company when demand in that seg- TVs this fiscal year, 60% more than ful at the Beijing Olym- talking about her love for her daugh- products hasn’t been significantly look. profit growth ahead of others, such affected by the economic slowdown ment fell. last year. as ArcelorMittal, the world’s larg- pics, is often the center of ter. “In the eyes of others you’re a in much of the world, it lowered its Sony Ericsson is now cutting By contrast, digital cameras— “We expect another excellent est steelmaker, which doesn’t own attention in Chinese ads. champion, but in my eyes you’ll al- net-profit forecast for the year end- costs and making new investments one of Sony’s strongest businesses quarter with continued earnings im- all of its raw materials. ArcelorMit- ButS in a new campaign from one offi- waysbemybaby,”sayshermother,in ing March 31 by 17% to 240 billion in mobile-phone development in an over the past couple of years—strug- provement as price increases imple- tal is expected to issue results cial sponsor of the Games, he takes a a voiceover. The end of the commer- yen ($2.23 billion), citing a more cau- effort to turn itself around. gled amid tough price competition mented during the second quarter Wednesday. back seat to parents. cial says “Johnson’s baby products— and early in the third quarter are ex- tious outlook overall in electronics. Despite the sharp overall profit de- and a greater shift in demand toward Even though it is buffered from “A delicacy among dairy prod- cheer for the love of mother.” pected to improve average realized For the quarter ended June 30, cline, Sony’s two most-troubled busi- lower-price entry-level products. rising raw material costs, U.S. Steel ucts, Satine is my choice,” reads the “At the end of the day, we are all prices for each of our reportable seg- Sony’s net profit fell to 35 billion nesses in recent years—videogames Also hurting Sony was an 8.3 bil- continued to increase prices to off- tagline on bill- about the mother-and-baby rela- ments,” said U. S. Steel Chairman yen from 66.5 billion yen a year ear- and TVs—showed improvement. Ana- lion yen loss in its movie division be- set higher costs for energy and board ads across tionship,” says Lowe China Chair- and Chief Executive John P. Surma. ADVERTISING lier, the company said. Revenue lysts and investors expect them to cause of the cost of promoting up- scrap steel. The trend is expected to Beijing for the man Kitty Lun. “Every gold medalist would have risen on increases in turn profitable this fiscal year. coming films and the lack of a block- U.S. Steel’s shares surged 14% to continue for the rest of the year. dairy producer. They feature a por- has one thing in common: They have television and PlayStation video- The PlayStation videogame unit buster film during the quarter. The $165.28 in afternoon New York “We expect to see further price in- trait of a happy mother, father and— a mother.” game sales, but the stronger yen reported a profit of 5.4 billion yen in unit is likely to make up for those Stock Exchange trading after rising creases in the U.S. for most prod- behind them—Mr. Liu. But endorsing a product isn’t the meant they remained essentially the quarter, compared with a loss a losses in coming quarters, how- as high as $167.02. ucts in both the short and intermedi- In a marketplace already satu- same as claiming you have used it. flat at 1.98 trillion yen. year earlier, as it reduced costs re- ever, with movies such as “Han- The strong outlook lifted foreign ate term, as a result of continued rated with images of sports in ac- Johnson & Johnson baby products The biggest reason for the steep lated to the PlayStation 3 video- cock,” starring Will Smith, and a steel stocks as well. Germany’s Thys- strong demand, mill allocation, low tion, highlighting athletes’ parents weren’t sold in China when Ms. drop in profit was a 97% decline in game console. Increased PS3 soft- new James Bond film set for re- senKrupp AG and Salzgitter AG inventories and increased export in- is helping a few Chinese advertis- Deng was growing up. “This is more the earnings Sony receives from the ware sales and strong demand for lease later this year. rose 3.9% and 3.1%, respectively, af- quiries,” said Michelle Applebaum, ers stand out from the chest-thump- of a general salute to the mothers ter U.S. Steel posted results. independent steel analyst for ing crowd. Coca-Cola has aired a who support their children with un- Steelmakers in the United States Michelle Applebaum Research Inc. TV ad featuring parents of famous conditional love,” says Ms. Lun. athletes such as diver Guo Jing As the Games approach, more Jing. They ride motorcycles, para- In this ad for dairy producer Satine, parents may get their star turns. Chi- Toyota, Honda trim Japan output chute in from the skies above and hurdler Liu Xiang, above, poses for a nese sportswear brand Li Ning says go through other extremes to be portrait with two actors playing his it is very difficult to get access to By Hiroyuki Kachi ota slashed its global sales and pro- global sales outlook for this fiscal Northrop’s net climbs 7.6% with their kids. Johnson & Johnson parents. Far left, Guo Jingjing, a leading the athletes they sponsor just be- duction plans for this year as soar- year through March, said it lowered has run ads profiling the mothers Chinese diver, in a Coke commercial fore and during the Games. But they Toyota ing gasoline prices and credit risks domestic production in June for the TOKYO—Auto makers of two champion athletes. with an actress posing as her mother. are working with some parents, in- Motor Corp. and Honda Motor Co. stemming from the subprime crisis 10th straight month. Output fell cluding those of a champion gym- amid shipbuilding concerns There’s a twist to some of the cut production in June, reflecting reduced consumers’ appetite for 8.6% on year to 105,256 vehicles. nast, to do promotional work and in- ads, though: The “parents” are ac- the slowdown in exports to North new cars. The auto maker’s domestic sales By August Cole Northrop surprised investors commercial,” says Kenth Kaerhoeg, terviews. tors. While Mr. Liu’s parents have America and weaker domestic Toyota now expects world-wide fell 6.4% to 54,784 vehicles in June, during the first quarter when it an- a spokesman for Coke. “Most elderly Chinese people said in past interviews that their sales. sales of 9.5 million vehicles for while exports in the month dropped Northrop Grumman Corp.’s shot nounced a $326 million charge Ads that use the families of well- would like to keep a low profile,” Domestic production at Toyota, 2008, up 1% from 2007 but down 5.8% to 52,005 vehicles. at a $40 billion U.S. Air Force aerial- blamed largely on botched electri- son liked to drink milk when he was says Li Ning’s public-affairs direc- growing up, they aren’t actually the known people to endorse products which unseated General Motors from its initial plan of 9.85 million. In the first year-over-year fall in refueling-tanker contract may be up cal cabling on a Navy amphibious as- arecommoninothermarkets,butad- tor Frank Zhang. “But because this Corp. as the world’s biggest automo- Toyota’s domestic sales declined 35 months,Honda also reduced out- in the air, but analysts focused Tues- sault ship, the Makin Island. people shown in the family portrait is a great occasion for their chil- of the Satine ad. Instead, actors who vertisers hope they will have special bile seller in the first six months of 0.2% to 127,047 vehicles, while its ex- put in June at its overseas plants by day on the company’s shipbuilding During a conference call, Presi- resonanceinChinabecauseitstradi- dren, they might do some inter- this year, fell 0.9% in June from a ports fell 8.5% to 221,534 vehicles. operations on the Gulf of Mexico dur- dent and Chief Operating Officer look somewhat like Mr. Liu’s par- views.” 3.7% to 217,610 vehicles. The com- tional culture stresses filial piety. year ago to 365,135 vehicles, the Its Overseas production rose 3% to pany cited a temporarily shutdown ing a second-quarter conference call. Wes Bush said he is confident that ents filled in, with the approval of —Juliet Ye in Hong Kong Theideathattheathleteisanindivid- first decline in three months. 376,738 vehicles. at a joint-venture factory in China Los Angeles-based Northrop the ship’s fiber-optic cabling will be Mr. Liu and his parents. contributed to this article. ual who achieves glory for himself is The figure came a day after Toy- Honda, which last week cut its following a flood. said net income rose 7.6% to $495 completed later this year. “I would “Theparentswereshy,”saysTom million, or $1.44 a share, from add that timely accomplishment of Doctoroff,thenorthAsiachiefexecu- actually foreign in a country where WSJ.com Coca-Cola; JWT (above) $460 million, or $1.31 a share, a this milestone is critical to our abil- tive of WPP Group’s JWT, which the state has long run all aspects of the lives of champion athletes, and Online today year earlier. Revenue rose 9.5% to ity to support the test program on made the Satine ad for the brand’s some risk in a country where blog- stand-ins for a reason. “From an act- See an example of two ideas about the broad role of society $8.63 billion. the delivery timeline that we’ve es- parent company, Yili. “But they ap- gers sometimes make a sport out of ing standpoint, we prefer to use family-endorser ads running in China, tablished,” said Mr. Bush. proved the concept.” run deep. Germany allows sale of generic Plavix Northrop Chairman and Chief Ex- dissecting media images for fakery. trained actors who can match our at WSJ.com/OnlineToday ecutive Ronald D. Sugar said the That step is crucial to deliver- Using stand-in parents carries But Coke says it used professional creative requirements for the TV “One of the reasons that Chinese By Jeanne Whalen Sanofi and Bristol-Myers sell Plavix Schweizerhall has said it is apply- company believes the Airbus-based ing the ship to the Navy in the sec- jointly world-wide and divide the ing for permission to sell generic Pla- tanker that it offered along with ond quarter of next year, and to Sanofi-Aventis SA said a Ger- profits. vix in Luxembourg and other Euro- partner European Aeronautic De- shifting workers back to other whose infection rates rival those of ceration, care gaps and gender ineq- man court has allowed a generic ver- Sanofi had been scrambling in re- pean countries, as well. fence & Space Co. remains the best ships under construction. some developing countries. uity are faulted by the institute re- sion of the company’s blockbuster cent months to try to stop generic Deutsche Bank analysts say the choice for the U.S. Air Force. “New Northrop has said a shortage of ex- U.N. sees some gains against AIDS “More Black Americans are in- port for the imbalance. drug Plavix to be marketed there Plavix from reaching the German patents protecting Plavix in Europe tankers are urgently needed now, perienced workers in the area ham- fected with HIV than the total popu- In a third report, treatment-ac- By Marilyn Chase starting immediately, dealing a market. Earlier this year, German au- don’t expire until 2012 and 2019. and our KC-45 is ready to go now,” pered its ability to fully recover tions on Sunday. Evidence, Monitoring and Policy. lations of people living with HIV in cess advocates blasted rich nations blow to Sanofi and partner Bristol- thorities gave Ratiopharm, Yes and But generics companies have been he said. from the effects of the hurricane. That long-awaited report is ex- While three million people world- seven of the 15 countries served by for abandoning a recent commit- Myers Squibb Novartis Co. AG’s Sandoz unit permis- getting around that by formulating After Boeing Co. successfully The Makin Island is on Wall The AIDS pandemic has peaked pected to reflect an increase from wide receive treatment with antivi- PEPFAR,” the President’s Emer- ment made by the U.N. and Group of sion to start selling generic Plavix, a or stabilized in some of the worst- prior estimates that 40,000 Ameri- ral drugs, tripling that number gency Program for AIDS Relief, said In a statement, Sanofi said the a different chemical salt of Plavix, protested Northrop’s victory earlier Street’s radar because Northrop, Eight leading nations to provide uni- German administrative court in Co- Sanofi spokesman said. this year, the U.S. Defense Depart- not the Navy, is paying for the re- hit countries, but is rising in others cans a year are infected by HIV, the would require a sustainable commit- institute CEO Phill Wilson. or a version that is chemically versal access to AIDS services. logne ruled that a subsidiary of Ger- Sanofi persuaded a German regu- ment is expected to solicit bids in done work. The problems required and remains volatile, a United Na- virus that causes AIDS. The agency ment of $11 billion a year, said Purn- African-Americans make up one slightly different from the original, many’s closely held generics com- lator to suspend those marketing the coming weeks in hopes of pick- Northrop to pull workers away tions agency said. attributes the revision to its im- ima Mane, deputy executive direc- in eight Americans but 50% of those Prof. Jim Y. Kim of Harvard Uni- the Sanofi spokesman said. pany Ratiopharm and another ge- rights. All three companies then ing a new winner by year end. from other projects at the Ingalls The report issued Tuesday, the proved counting methods. tor of the U.N. Population Fund. with HIV/AIDS, the institute said. versity described as “simplistic” the neric-drug company called Yes went to the Cologne court and asked Plavix sales in the U.S. plum- Despite the overall improvement shipyard in Pascagoula, Miss. In a most comprehensive to date by the The disease, which currently af- Several agencies that monitor Black women in the U.S. are 23 times recent arguments by some health could market their version of Plavix. it to overturn the suspension. The meted in 2006 when Canadian ge- in Northrop’s financial performance, sign of how seriously Northrop’s Joint United Nations Programme on flicts 33 million people world-wide, the virus issued reports Tuesday more likely to be infected than economists that focused AIDS pro- Sanofi said it would appeal the court today overturned two of the nerics company Apotex Inc. started its shipbuilding division continues management is taking the situa- HIV/AIDS, included data from 147 has claimed 25 million lives since be- ahead of the International AIDS con- white women. Among gay men, grams detract from basic health sys- court’s decision. suspensions and is still deciding selling a low-cost copy of the drug. to experience problems from the dev- tion, Mr. Bush reviews the ship’s countries, but lacked data from the ing identified in 1981, and an esti- ference that kicks off in Mexico City blacks have twice the infection rate tems in poor countries. Indeed, in Plavix had world-wide sales last whether to allow Sandoz onto the In June 2007, a U.S. court barred astation brought by Hurricane Ka- progress weekly. U.S. Although UNAIDS called the mated 2.7 million people become in- on Sunday. of whites. AIDS is the leading cause countries such as Haiti and Rwanda, year of $7.3 billion, making it the market, the Sanofi spokesman said. Apotex from selling further copies trina in 2005. Operating income in Northrop shares were down 2%, omission “a disappointment,” the fected every year. Gains in preven- The Los Angeles-based Black of death among black women aged rising AIDS resources have been world’s second largest selling drug, Sandoz wants to sell generic Plavix until Plavix’s U.S. patent expires in the shipbuilding division slipped 6% or $1.37, to $67.30 in New York U.S. Centers for Disease Control and tion and treatment “have not been AIDS Institute called for greater at- 25 to 34 years old, and the second- shown to help lift health measures behind Pfizer Inc.’s cholesterol pill in partnership with Swiss generics 2011. After that, sales of the to $126 million, despite a 24% in- Stock Exchange trading late Tues- Prevention in Atlanta is set to re- enough to push back the epidemic,” tention to the uncontrolled epi- leading cause of death among black such as childhood-vaccination Lipitor, according to IMS Health. maker Schweizerhall Holding AG. branded version recovered. crease in revenue to $1.69 billion. day afternoon. lease updated figures on HIV infec- said Paul DeLay, UNAIDS director of demic among African-Americans, men aged 35 to 44. Drug use, incar- rates. 26 WEDNESDAY, JULY 30, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. WEDNESDAY, JULY 30, 2008 7 GLOBAL MARKETS LINEUP CORPORATE NEWS GLOBAL BUSINESS BRIEFS

Commodities Prices of futures contracts with the most open interest Currencies London close on July 29 Atos Origin SA Clariant AG Geox SpA EXCHANGE LEGEND: CBOT: Chicago Board of Trade; CME: Chicago Mercantile Exchange; ICE-US: ICE Futures U.S.MDEX: Bursa Malaysia Per In Per In Clariant Italian shoemaker Geox SpA said Derivatives Berhad; LIFFE: London International Financial Futures Exchange; COMEX: Commodity Exchange; LME: London Metals Exchange; AMERICAS Per euro In euros U.S. dollar U.S. dollars EUROPE Per euro In euros U.S. dollar U.S. dollars Matsushita Electric sees First-half net profit grew, AG said it swung to a NYMEX: New York Mercantile Exchange;ICE-EU: ICE Futures Europe strong sales drove its first-half net Argentina peso-a 4.7153 0.2121 3.0225 0.3309 Euro zone euro 1 1 0.6410 1.5600 second-quarter net profit, but cau- ONE-DAY CHANGE Contract Contract boosted by pension deal profit 13% higher, despite a volatile Commodity Exchange Last price Net Percentage high low Brazil real 2.4529 0.4077 1.5723 0.6360 1-mo. forward 1.0014 0.9986 0.6419 1.5578 tioned that further increases in raw- Atos Origin retail season. Net profit rose to Œ78 Corn (cents/bu.) CBOT 613.50 12.25 2.04% 799.25 258.50 Canada dollar 1.6020 0.6242 1.0269 0.9738 3-mos. forward 1.0047 0.9953 0.6440 1.5527 SA said first-half material prices will hit earnings. 1-mo. forward 1.6027 0.6240 1.0273 0.9734 6-mos. forward 1.0092 0.9909 0.6469 1.5458 payoff on flat-panel TVs net profit more than doubled and The Basel-based company, which million ($123 million) from Œ68.9 Soybeans (cents/bu.) CBOT 1391.00 –5.00 –0.36% 1,636.75 622.00 3-mos. forward 1.6035 0.6236 1.0278 0.9729 Czech Rep. koruna-b 23.692 0.0422 15.187 0.0658 million a year earlier as revenue Wheat (cents/bu.) CBOT 792.00 –5.75 –0.72 1,278.00 499.00 raised its 2008 organic-revenue- makes ingredients for products 6-mos. forward 1.6043 0.6233 1.0284 0.9724 Denmark krone 7.4620 0.1340 4.7832 0.2091 Even so, the company is still rose 20% to Œ464.1 million from Live cattle (cents/lb.) CME 105.600 0.800 0.76 113.200 96.200 growth target. Net at the French in- such as dyes, detergents and drugs, Chile peso 770.04 0.001299 493.60 0.002026 Hungary forint 230.19 0.004344 147.55 0.006777 Ramping up output faced with the growing threat of Œ388.2 million. Shoe sales rose 17% Cocoa ($/ton) ICE-US 2,835 40 1.43 3,290 1,818 formation technology services had net of 48 million Swiss francs Colombia peso 2792.57 0.0003581 1790.05 0.0005586 Malta lira 0.4570 2.1882 0.2929 3.4137 damage from the slowdown in the to Œ432.3 million while clothing Coffee (cents/lb.) ICE-US 136.40 1.10 0.81 176.05 120.75 company was boosted by a Œ64 mil- ($46.4 million), compared with a 13 Ecuador US dollar 1.5600 0.6410 1 1 Norway krone 8.0789 0.1238 5.1786 0.1931 lifts quarterly profit; U.S. economy. sales increased 81% to Œ31.2 million. Sugar (cents/lb.) ICE-US 12.82 0.50 4.06 15.43 9.72 lion ($100.8 million) gain related million Swiss franc net loss a year Mexico peso-a 15.7007 0.0637 10.0643 0.0994 Poland zloty 3.2128 0.3113 2.0595 0.4856 In the current quarter, the con- Sales in the U.S. were up 11% as sales Cotton (cents/lb.) ICE-US 74.48 0.63 0.85 98.45 59.20 to the company’s U.K. pension earlier. Revenue slipped 2.8% to 2.12 Peru sol 4.4143 0.2265 2.8296 0.3534 Russia ruble-d 36.566 0.02735 23.439 0.04266 Toshiba posts a loss sumer electronics company expects in Italy—the company’s largest mar- Crude palm oil (ringgit/ton) MDEX 2,969.00 –32 –1.07 3,741 2,861 plans after it reached an agree- billion Swiss francs, hit by currency Uruguay peso-e 29.875 0.0335 19.150 0.0522 Slovak Rep. koruna 30.3664 0.03293 19.4650 0.05137 the housing crisis to start affecting ket—rose 16%. Geox founder Mario Cocoa (pounds/ton) LIFFE 1,502 16 1.08 1,748 931 ment with two major pension- fluctuations. A 13% jump in raw-ma- U.S. dollar 1.5600 0.6410 1 1 Sweden krona 9.4718 0.1056 6.0715 0.1647 By Hiroyuki Kachi products related to the auto and hous- Moretti Polegato said that despite a Robusta coffee ($/ton) LIFFE 2,410 89 3.83 2,840 1,488 trustee boards. Atos, provider of IT terial prices prompted Clariant to Venezuela bolivar 3349.90 0.000299 2147.30 0.000466 Switzerland franc 1.6297 0.6136 1.0447 0.9573 And Juro Osawa ing industries, such as electronics for services for the Beijing Olympics, raise prices by 6% in the quarter. It challenging climate, he is confident Copper (cents/lb.) COMEX 359.05 –2.15 –0.60 422.00 276.00 ASIA-PACIFIC 1-mo. forward 1.6291 0.6138 1.0443 0.9576 automobiles, said Makoto Uenoyama, said net profit increased to Œ125 warned investors to brace for even Geox will see full-year growth, add- Gold ($/troy oz.) COMEX 926.40 –11.40 –1.22 1,048.00 437.00 Australia dollar 1.6395 0.6099 1.0509 0.9516 3-mos. forward 1.6281 0.6142 1.0436 0.9582 TOKYO—Matsushita Electric In- a Matsushita director in charge of the million from Œ57 million a year ear- higher raw-material and energy ing that the order log for fall and win- Silver (cents/troy oz.) COMEX 1737.50 –9.00 –0.52 2,132.00 1,241.50 China yuan 10.6489 0.0939 6.8260 0.1465 6-mos. forward 1.6264 0.6149 1.0425 0.9592 dustrial Co. reported solid profit company’s finance operations. lier. Revenue fell slightly to Œ2.86 costs, losses from currency fluctua- ter was up 19%. Geox shares rose 14% Hong Kong dollar 12.1718 0.0822 7.8022 0.1282 Turkey lira-d 1.8629 0.5368 1.1941 0.8375 Aluminum ($/ton) LME 2,986.00 13.00 0.44 3,340.00 2,375.00 gains for the fiscal first quarter, un- But the Osaka-based company ex- billion from Œ2.89 billion. Exclud- tions, as well as an “increasingly un- to Œ7.60 in Milan. So far this year, India rupee 66.544 0.0150 42.655 0.0234 U.K. pound 0.7874 1.2699 0.5048 1.9811 Tin ($/ton) LME 22,595.00 145.00 0.65 25,450 13,525 derscoring how the consumer elec- pects only a small impact on its ing the impact of acquisitions, dis- certain economic outlook,” particu- Geox shares have fallen 45% amid a Indonesia rupiah 14232 0.0000703 9123 0.0001096 1-mo. forward 0.7891 1.2673 0.5058 1.9771 Copper ($/ton) LME 7,910.00 –65.00 –0.82 8,811.00 6,335.00 tronics giant’s strategy of ramping mainstay TV and other digital prod- grim economic outlook. Japan yen 168.74 0.005926 108.16 0.009246 3-mos. forward 0.7927 1.2615 0.5081 1.9679 posals and currency movements, larly in Southern Europe. Clariant Lead ($/ton) LME 2,225.00 46.00 2.11 3,875.00 1,564.00 up production of flat-panel televi- uct operations. 1-mo. forward 168.45 0.005937 107.98 0.009261 6-mos. forward 0.7977 1.2535 0.5114 1.9556 revenue grew 6.8%, Atos said. As a nevertheless confirmed its outlook, Zinc ($/ton) LME 1,874.50 49.50 2.71 3,540.00 1,761.00 sions is paying off. Another electronics giant, 3-mos. forward 167.82 0.005959 107.57 0.009296 MIDDLE EAST/AFRICA result of the strong organic growth which is to bolster its operating mar- Mitsubishi Motors Corp. Nickel ($/ton) LME 18,450 120 0.65 34,050 18,330 The bright outlook at the maker of Toshiba, said Tuesday that it swung 6-mos. forward 166.83 0.005994 106.94 0.009351 Bahrain dinar 0.5881 1.7003 0.3770 2.6525 in the quarter, Atos raised its full- gin—minus exceptional items—and Crude oil ($/bbl.) NYMEX 122.19 –2.54 –2.04 147.90 66.86 Panasonic goods stands in contrast to Malaysia ringgit-c 5.0975 0.1962 3.2675 0.3060 Egypt pound-a 8.2878 0.1207 5.3125 0.1882 to a net loss of 11.61 billion yen in the year organic-revenue-growth tar- record strong cash flow for 2008. MitsubishiMotorsCorp.saiditre- Heating oil ($/gal.) NYMEX 3.4985 –0.0890 –2.48 4.1919 1.8600 Toshiba New Zealand dollar 2.1172 0.4723 1.3571 0.7369 Israel shekel 5.3931 0.1854 3.4570 0.2893 the prospects for Corp., fiscal first quarter from the profit of get to more than 5% from a previ- turned to the black in the fiscal first RBOB gasoline ($/gal.) NYMEX 3.0132 –0.0608 –1.98 3.6503 1.9600 which reported a net loss in the April- Pakistan rupee 111.622 0.0090 71.550 0.0140 Jordan dinar 1.1057 0.9044 0.7088 1.4109 20.63 billion yen it reported a year ously forecast 4%. Martha Stewart Living quarter as cost-cutting efforts and Natural gas ($/mmBtu) NYMEX 9.130 –0.71 –0.065 13.752 4.600 Philippines peso 68.970 0.0145 44.210 0.0226 Kuwait dinar 0.4150 2.4098 0.2660 3.7594 June quarter as a squeeze in the mar- earlier. solid sales in Europe offset sluggish Brent crude ($/bbl.) ICE-EU 123.79 –3.01 –2.37 148.99 74.80 Singapore dollar 2.1337 0.4687 1.3677 0.7312 Lebanon pound 2351.78 0.0004252 1507.50 0.0006634 ket for flash-memory semiconduc- Toshiba posted an operating loss Akzo Nobel NV Martha Stewart Living Omnime- sales in Asia and North America. Its Gas oil ($/ton) ICE-EU 1,141.50 –24.50 –2.10 1,347.25 595.00 South Korea won 1570.03 0.0006369 1006.40 0.0009936 Saudi Arabia riyal 5.8506 0.1709 3.7503 0.2666 tors continues. Prices for flash mem- of 24.18 billion yen, compared to a dia Inc. swung to a second-quarter results were also helped by a stron- Taiwan dollar 47.529 0.02104 30.467 0.03282 ory have fallen, while the strength of 21.18 billion yen operating profit in Source: Thomson Reuters; WSJ Market Data Group South Africa rand 11.5436 0.0866 7.3995 0.1351 Akzo Nobel NV reported a 32% profit amid strong revenue gains at ger yen. The Tokyo car maker posted WSJ.com Thailand baht 52.250 0.01914 33.493 0.02986 United Arab dirham 5.7300 0.1745 3.6730 0.2723 the yen has hurt earnings as well. the same period last year, while reve- fall in second-quarter net profit, its merchandising unit, though the a net profit of 10.3 billion yen ($95.8 Follow the markets throughout the day, with updated stock quotes, news and commentary at SDR -f 0.9586 1.0432 0.6144 1.6275 Citing the benefits of cost cuts nue slipped to 1.619 trillion yen from dented by charges, and warned that company sees third-quarter revenue million) in the three months ended WSJ.com/Europe. Also, receive email alerts that summarize the day’s trading in Europe and Asia. a-floating rate b-commercial rate c-government rate c-commercial rate d-Russian Central Bank rate f-Special Drawing Rights from the Inter- and strength in its flat-panel TV 1.665 trillion yen. its full-year earnings will fall short below analysts’ expectations. The June 30, reversing a net loss of 8.23 To sign up, go to WSJ.com/Online Today national Monetary Fund ; based on exchange rates for U.S., British and Japanese currencies. business, Matsushita said it posted The company, however, said it is of last year’s as raw-material prices New York media firm reported net in- billion yen a year earlier. Its sales fell Note: Based on trading among banks in amounts of $1 million and more, as quoted by Thomson Reuters. a net profit of 73.03 billion yen leaving its earnings guidance for continue to rise. Net at the coatings come of $328 million, or a penny a 3% to 610.1 billion yen and operating ($679.5 million) in the quarter the year to March 2009 unchanged and chemical company dropped to share, compared with a net loss of profit jumped 64% to 9.86 billion yen ended June 30, nearly double the for now. Œ184 million ($290 million) from $6.7 million, or 13 cents a share, a from six billion yen. For the year end- Major stock market indexes Stock indexes from around the world, grouped by region. Shown in local-currency terms. 39.31 billion yen profit it registered Despite problems in the market Œ270 million a year earlier. The Am- year earlier, when the results were af- ing in March, the auto maker expects in the same period a year earlier. for the chips used in mobile phones sterdam-based company said it fected by a severance charge. The lat- net profit to decline 42% to 20 billion Price-to- PREVIOUS SESSION PERFORMANCE Price-to- PREVIOUS SESSION PERFORMANCE Sales fell 3.9% to 2.152 trillion yen and music players, Toshiba still ex- booked charges of Œ86 million, est results included four cents in yen, its operating profit to decline earnings ratio* Region/Country Index Close Net change Percentage change Yr.-to-date 52-wk. earnings ratio* Region/Country Index Close Net change Percentage change Yr.-to-date 52-wk. from 2.24 trillion yen, due to the ex- pects a net profit of 130 billion yen, mostly related to last year’s acquisi- charges. Revenue rose 5% to $77.1 45% to 60 billion yen, and sales to sag 11 EUROPE DJ Stoxx 600 279.64 0.91 0.33% –23.3% –26.4% … Russia RTSI 1896.28 –32.46 –1.68% –17.2% –4.9% clusion of former subsidiary Victor operating profit of 290 billion yen tion of U.K. paint company Imperial million. The mean estimates of ana- 1.2% to 2.65 trillion yen. 11 DJ Stoxx 50 2840.10 13.16 0.47 –22.9% –25.1% 10 Spain IBEX 35 11683.8 199.2 1.73% –23.0% –21.1% Co. of Japan following a change in and revenue of 8 trillion yen. Chemical Industries. Revenue rose lysts surveyed by Thomson Reuters 11 Euro Zone DJ Euro Stoxx 312.26 0.69 0.22 –24.7% –25.3% 15 Sweden OMX Stockholm 271.48 0.12 0.04 –22.8% –32.8% the unit’s status. Matsushita said its But the company warned it will 44% to Œ3.87 billion, lifted by the ac- were for earnings of four cents a Thales SA 10 DJ Euro Stoxx 50 3324.86 11.45 0.35 –24.4% –23.0% 13 Switzerland SMI 6993.30 24.37 0.35 –17.6% –21.3% operating profit rose 48% to 109.57 need to “carefully assess emerging quisition. Chief Financial Officer share and revenue of $75 million. billion yen from 73.89 billion yen. trends in this business environ- 11 Austria ATX 3631.35 68.55 1.92 –19.5% –22.5% … Turkey ISE National 100 39153.74 1032.80 2.71 –29.5% –25.9% Keith Nichols said the company ex- The company expects third-quarter French defense-electronics com- Matsushita has a wide range of ment” and will revise projections if pects weaker economic conditions revenue of between $65 million and pany Thales SA said first-half net 9 Belgium Bel-20 2991.17 –8.60 –0.29% –27.5% –31.8% 9 U.K. FTSE 100 5319.2 6.6 0.12 –17.6% –16.4% operations but its main business is necessary. in some of its mature markets and $67 million, below analysts’ latest profit fell 48%, owing to the strong 13 Czech Republic PX 1443.9 –1.3 –0.09 –20.5% –19.3% 13 ASIA-PACIFIC DJ Asia-Pacific 134.08 –2.78 –2.03 –15.2% –17.1% consumer electronics and its core For the current fiscal year sees no signs of easing in raw-mate- forecast of $75 million. euro and a large year-earlier gain. Net 13 Denmark OMX Copenhagen 376.76 0.72 0.19 –16.0% –21.4% … Australia SPX/ASX 200 4847.4 –74.7 –1.52 –23.5% –21.1% products are flat-screen TVs. The through March, Matsushita contin- rial and energy price increases. profit plunged to Œ289 million ($455 12 Finland OMX Helsinki 8366.56 –22.01 –0.26 –27.9% –25.8% … China CBN 600 23402.71 –479.51 –2.01 –43.5% –33.1% company is one of the world’s larg- ues to predict a 10% rise in net profit Valero Energy Corp. million) from Œ559 million a year ear- 10 France CAC-40 4320.49 –3.96 –0.09 –23.0% –24.9% 13 Hong Kong Hang Seng 22258.00 –429.21 –1.89 –20.0% –4.0% est manufacturers of such products to 310 billion yen with a 1.4% gain in Bank of China Ltd. lier, when Thales booked a capital 11 Germany DAX 6398.80 47.65 0.75 –20.7% –15.6% 12 India Sensex 13791.54 –557.57 –3.89 –32.0% –11.3% and is stepping up efforts to boost sales to 9.2 trillion yen. It left unre- Valero Energy Corp. posted a gain of Œ318 million from the sale of … Hungary BUX 21776.12 18.08 0.08 –17.0% –25.6% … Japan Nikkei Stock Average 13159.45 –194.33 –1.46 –14.0% –23.7% production of both plasma and liq- vised its operating profit outlook at Bank of China Ltd. said its U.K. 67% drop in second-quarter net in- some of its businesses to French ship- uid-crystal-display sets. 560 billion yen, up 7.8%. Heri- builder DCNS. Revenue was up 1.6% 5 Ireland ISEQ 4585.04 –34.16 –0.74 –33.9% –46.5% … Singapore Straits Times 2886.56 –23.80 –0.82 –16.7% –17.1% unit bought a 30% stake in come, reflecting lower margins and tage Fund Management SA of Swit- increased costs. The oil refiner also to Œ5.67 billion from Œ5.58 billion. 9 Italy S&P/MIB 28278 –91 –0.32 –26.7% –29.7% 11 South Korea Kospi 1567.20 –31.09 –1.95 –17.4% –18.9% zerland, a China-focused hedge gave a cautious outlook. Valero said The Paris-based company said the 6 Netherlands AEX 395.10 2.12 0.54 –23.4% –26.0% 14 AMERICAS DJ Americas 329.99 4.98 1.53 –12.5% –12.0% fund, for nine million Swiss francs it expects distillate margins to be strong euro pulled revenue down by 9 Norway All-Shares 478.64 3.19 0.67 –16.0% –16.5% … Brazil Bovespa 57636.75 767.73 1.35 –9.8% 5.8% ($8.7 million). The lender, one of strong through next year but sees Œ261 million. Also weighing on the 17 Poland WIG 40869.23 –10.25 –0.03 –26.6% –35.8% 14 Mexico IPC 27282.69 549.85 2.06 –7.6% –12.1% Ranbaxy’s profit falls 91%, China’s Big Four state-owned gasoline margins continuing to be first-half result was a charge of Œ45 11 Portugal PSI 20 8407.55 –88.94 –1.05 –35.4% –37.4% banks, said its Bank of China (UK) weak and industry utilization rates million because of difficulties with Ltd. unit plans to raise its holding declining. Valero had net of $734 two complex contracts in its security- *P/E ratios use trailing 12-months, as-reported earnings Reuters Group PLC is the primary data provider for several statistical tables in The Wall Street Journal, including foreign stock quotations, futures and futures hit by foreign-exchange loss in Heritage Fund to 70% by buying million, or $1.37 a share, down from systems business, Thales said. Note: Americas index data are as of 3:00 p.m. ET. Sources: Thomson Reuters; WSJ Market Data Group options prices, and foreign exchange tables. Reuters real-time data feeds are used to calculate various Dow Jones Indexes. new shares to be issued by the $2.25 billion, or $3.89 a share, a By Rumman Ahmed U.S. dollar during the period. Swiss company. It didn’t provide a year earlier. Revenue grew 51% to CME Ltd. Dow Jones and Dow Jones Stoxx Indexes MSCI indexes And Mukesh Jagota Ranbaxy shares closed down time frame for raising the stake. $36.64 billion. The rising cost of 3.8% at 474.80 rupees on the Bom- Regulators in the U.K. and Switzer- crude oil has squeezed independent Central European Media Enter- Developed and emerging-market regional and country indexes Price-to- Price-to- NEW DELHI—Ranbaxy Labora- bay Stock Exchange, in line with the land have approved the purchase, refiners, who must buy crude at mar- prises Ltd. said it agreed to buy an Dividendearnings PERFORMANCE (euros) PERFORMANCE (U.S. dollars) Dividendearnings PERFORMANCE (euros) PERFORMANCE (U.S. dollars) from MSCI Barra as of July 28, 2008 yield* ratio* Dows Jones Index Last Daily 52-wk. Last Daily 52-wk. yield* ratio* Dows Jones Index Last Daily 52-wk. Last Daily 52-wk. tories Ltd.’s second-quarter net 30-share Sensex, which ended Tues- the bank said on its Web site. The ket rates before processing it to 80% stake in two Bulgarian televi- 2.69% 13 World -a % % 256.37 0.17%–13.8% 9.14% 6 Stoxx Select Dividend 30 1646.50 –0.37% –48.5% 2197.26 –1.28%–41.3% Price-to- LOCAL-CURRENCY profit fell 91% from a year earlier to day 3.9% lower at 13791.54. deal will give Bank of China an make products such as gasoline and sion channels in a deal valued at $172 Dividend earnings PERFORMANCE 2.72% 13 Stoxx Global 1800 212.80 0.50% –24.7% 248.69 –0.09%–14.0% 5.11% 7 Euro Stoxx Select Div 30 2115.00 0.54% –36.0% 2833.37 –0.38%–27.1% yield ratio Morgan Stanley Index Last Daily YTD 52-wk. 229 million rupees ($5.4 million), “Though the numbers were dis- overseas platform to develop its diesel. While the cost of crude oil fu- million. Bermuda-based CME said it 3.41% 11 Stoxx 600 279.60 0.33% –26.4% 325.67 –0.59%–16.2% 5.18% 14 U.S. Select Dividend -b % % 677.91 1.77%–22.7% 2.80% 14 ALL COUNTRY (AC) WORLD* 340.40 –0.97%–15.6% –14.9% hurt by a foreign-exchange loss of appointing from a bottom-line per- private-banking business, the tures is up 70% from a year ago, the will acquire the stakes in national 3.52% 11 Stoxx Large 200 302.20 0.35% –25.4% 349.99 –0.56%–15.0% 9.73% 11 Australia LPT -b, c 1492.40 –3.31% –35.5% % % 2.90% 14 World (Developed Markets) 1,345.80 –1.09%–15.3% –16.0% 1.93 billion rupees. spective, the business looks strong bank said.Heritage Fund manages price of gasoline futures has risen channel TV2 and sport cable channel 2.83% 12 Stoxx Mid 200 247.30 0.21% –30.4% 286.39 –0.70%–20.7% 3.20% 11 Sustainability 881.50 0.31% –24.9% 1164.44 –0.27%–14.2% 2.60% 15 World ex-EMU 154.85 –1.16%–14.4% –16.0% However, India’s largest pharma- on the operating front as the com- $362 million of assets, with $179 only 44%. Ring TV from Top Tone Media Hold- 3.04% 11 Stoxx Small 200 155.00 0.17% –31.5% 179.41 –0.75%–22.0% 2.09% 14 Islamic Market -a % % 2154.27 0.22% –6.4% 2.70% 15 World ex-UK 1,332.75 –1.15%–15.0% –15.4% ceutical company by revenue said pany has been able to improve mar- million of assets focused in China. ings. CME, founded and headed up Tuesday that its operating margin gins,” said Ranjit Kapadia, head of 2.27% 14 Stoxx Growth 1355.40 0.46% –21.3% 1859.06 –0.46%–10.3% 2.44% 13 Islamic Market 100 1704.90 0.88% –18.8% 2282.89 0.29% –7.1% 3.60% 12 EAFE 1,893.62 –0.39%–16.0% –16.3% Sinotrans Shipping Ltd. by Ronald S. Lauder, operates sta- expanded from a year earlier and it research for private client group at 4.59% 9 Stoxx Value 1251.90 0.12% –28.6% 1717.99 –0.79%–18.7% 5.15% 8 Islamic Turkey -c 2734.90 1.65% –9.3% % % 2.30% 14 Emerging Markets (EM) 1,024.40 –0.01%–17.8% –3.3% Gas Natural SDG SA tions in six countries in Central and expects to maintain its margin Mumbai-based brokerage Prabhu- 3.28% 11 Euro Stoxx 312.30 0.22% –25.3% 363.66 –0.69%–14.9% 5.85% 19 Bahrain -c 238.60 –0.04% 9.0% % % 4.10% 11 EUROPE 97.43 –1.01%–23.5% –29.0% Sinotrans Shipping Ltd. said Eastern Europe. The company has an above 17% in the current year. das Lilladher. 3.39% 11 Euro Stoxx Large 200 335.70 0.25% –24.9% 388.49 –0.67%–14.4% 2.11% 18 Wilshire 5000 % % 12740.16 1.01%–13.2% 4.20% 10 EMU 225.81 –0.79%–19.3% –16.2% Spanish gas distributor Gas Natu- first-half net profit more than tri- option to acquire the remaining 20% In the comparable quarter last Ranbaxy said its earnings before 2.76% 12 Euro Stoxx Mid 200 282.50 0.11% –25.9% 326.83 –0.81%–15.6% % DJ-AIG Commodity 178.40 –0.47% 2.9% 202.05 –1.38% 17.2% 4.00% 11 Europe ex-UK 106.77 –0.99%–23.4% –27.5% ral SDG SA reported a 10% rise in sec- pled, boosted by higher bulk ship- in five years. Bulgaria, a Balkan coun- year, the company reported a net interest, taxes, depreciation and am- 2.83% 11 Euro Stoxx Small 200 168.90 0.01% –29.7% 195.32 –0.90%–19.9% % Euro Currency 125.70 % 11.4% % % 5.60% 8 Europe Value 110.44 –1.64%–27.1% –35.2% ond-quarter net profit, helped by an ping rates. The company, which first try of 7.6 million, joined the Euro- profit of 2.66 billion rupees, which ortization margin was 17.8% for the *Fundamentals are based on data in U.S. dollar. Footnotes: a-in US dollar. b-dividends reinvested. c-in local currency. Note: All data as of 2 p.m. ET. Source: Dow Jones Indexes 2.70% 14 Europe Growth 83.61 –0.41%–20.0% –22.7% increase in electricity generation listed in November, said net totaled pean Union last year. It had a televi- included a foreign-exchange gain of latest quarter, compared with 13.9% sion advertising market of $168 mil- 3.20% 12 Europe Small Cap 164.89 –1.06%–23.4% –36.4% and gas distribution. Net rose to US$190.8 million, up from US$57.6 two billion rupees. Excluding for- a year earlier. Analysts said Ebitda lion in 2007, which is expected to 2.00% 11 EM Europe 363.49 –0.76%–24.4% –14.5% Œ226.9 million ($357.2 million) from million in the year-earlier period. Cross rates U.S.-dollar and euro foreign-exchange rates in global trading eign-exchange gains or losses, the margin growth was driven by Œ205.9 million a year earlier, as sales Revenue rose 80% to US$234.4 mil- grow by 20% annually through 2012. 4.30% 10 UK 1,574.99 –0.83%–18.0% –20.4% company said its second-quarter higher contribution from the sale of increased 37% to Œ3.09 billion. Profit lion. Sinotrans Shipping, China’s 3.50% 12 Nordic Countries 158.56 –0.32%–23.1% –27.3% USD GBP CHF SEK RUB NOK JPY ILS EUR DKK CDN AUD profit after tax was 1.61 billion ru- high-margin branded generic drugs was helped by electricity generation third-largest dry-bulk shipper by ca- 1.20% 12 Russia 1,173.18 –1.33%–21.9% –1.2% Australia 1.0509 2.0820 1.0060 0.1731 0.0448 0.2029 0.0097 0.3040 1.6395 0.2197 1.0234 ... pees, on par with its 1.60 billion-ru- in emerging markets. in Mexico, where Gas Natural ac- pacity, attributed the rise in earn- —Compiled from staff Canada 1.0269 2.0344 0.9830 0.1691 0.0438 0.1983 0.0095 0.2970 1.6020 0.2147 ... 0.9771 2.90% 15 South Africa 671.71 1.32% –5.8% –3.4% pee profit a year earlier. Sales rose The company said sales in emerg- quired five gas-fired power plants ings to higher rates, underpinned by and wire service reports. Denmark 4.7832 9.4761 4.5787 0.7878 0.2041 0.9236 0.0442 1.3836 7.4620 ... 4.6579 4.5514 3.10% 13 AC ASIA PACIFIC EX-JAPAN 419.20 –0.35%–20.9% –9.6% 13% to 18.30 billion rupees. ing markets contributed 53% of glo- last year. The Mexican operations strong demand for raw materials Euro 0.6410 1.2699 0.6136 0.1056 0.0273 0.1238 0.0059 0.1854 ... 0.1340 0.6242 0.6099 1.80% 16 Japan 821.82 0.20%–12.6% –26.8% Ranbaxy was expected to report bal sales and grew 9% from a year have accelerated its diversification, such as iron ore and coal. The com- Israel 3.4570 6.8488 3.3092 0.5694 0.1475 0.6676 0.0320 ... 5.3931 0.7227 3.3664 3.2895 2.10% 16 China 63.26 –0.18%–25.9% 0.3% Japan 108.1600 214.2812 103.5371 17.8144 4.6145 20.8860 ... 31.2872 168.7350 22.6127 105.3267 102.9196 net profit of 954 million rupees on earlier. the company said. Gas Natural’s gas- pany said its daily charter hire rate 1.10% 16 India 572.90 0.46%–33.0% –4.3% Executive Travel Program Norway 5.1786 10.2596 4.9573 0.8529 0.2209 ... 0.0479 1.4980 8.0789 1.0827 5.0429 4.9277 net sales of 18.80 billion rupees, ac- Developed markets, accounting distribution business remained rose 86% in the first half to 1.90% 11 Korea 435.65 –0.41%–15.7% –7.2% Guests and clients of 320 leading Russia 23.4392 46.4365 22.4373 3.8605 ... 4.5262 0.2167 6.7802 36.5662 4.9004 22.8252 22.3035 cording to a Dow Jones Newswires for 40% of global sales, grew 12% solid in Spain and accelerated in It- US$37,409. The company raised hotels and car rental agencies 4.40% 13 Taiwan 277.05 0.00%–17.0% –21.3% Sweden 6.0715 12.0286 5.8120 ... 0.2590 1.1724 0.0561 1.7563 9.4718 1.2694 5.9125 5.7773 poll of seven analysts. driven by the U.S., Canada and aly and Latin America. Chief Execu- US$1.47 billion in a Hong Kong ini- receive The Wall Street Journal Switzerland 1.0447 2.0696 ... 0.1721 0.0446 0.2017 0.0097 0.3022 1.6297 0.2184 1.0173 0.9940 2.10% 18 US BROAD MARKET 1,359.40 –1.77%–14.8% –17.1% The company’s profit was hurt by France. Sales in the key U.S. market, tive Rafael Villaseca warned that the tial public offering in November. It Europe daily, courtesy of U.K. 0.5048 ... 0.4832 0.0831 0.0215 0.0975 0.0047 0.1460 0.7874 0.1055 0.4915 0.4803 1.50% 32 US Small Cap 1,787.93 –1.65% –9.9% –17.1% foreign-exchange losses on servic- which contributed 24% of global company may see a slowdown in said at the time it would use the pro- TM U.S. ... 1.9811 0.9573 0.1647 0.0427 0.1931 0.0092 0.2893 1.5600 0.2091 0.9738 0.9515 2.00% 15 EM LATIN AMERICA 4,146.66 –0.50% –5.8% 10.5% addictlab.com ing overseas loans after the rupee de- sales in the quarter, grew 12% to Spain’s gas market due to the deteri- ceeds to enlarge its fleet size and ac- global creative think tank Source: Thomson Reuters via WSJ Market Data Group *Twenty-three developed and 26 emerging markets Source: MSCI Barra preciated more than 7% against the $106 million. oration of the Spanish economy. quire shipping companies. 8 WEDNESDAY, JULY 30, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. WEDNESDAY, JULY 30, 2008 25 ECONOMY & POLITICS BLUE CHIPS & BONDS Below, a look at the Dow Jones Stoxx 50, the Dow Jones Industrial Average P/E: 77 Major players & benchmarks biggest and best known companies in Europe, U.S. OECD FRANCE including the U.K. LAST: 11397.56 s 266.48, or 2.39% 7 7 7 Dow Jones Stoxx 50: Tuesday’s best and worst… YEAR TO DATE: t 1,867.26, or 14.1% Home prices fall sharply Inflation hit 8-year high Consumer confidence hits OVER 52 WEEKS t 1,814.43, or 13.7% Market value, Previous in billions close, in STOCK PERFORMANCE as consumers stay glum in developed world in June another record low in July Company Country Industry of US$ local currency Previous session 52-week Three-year 13200 SAP Germany Software $72.4 37.26 9.75% –6.4% 5.3% 50–day .S. HOME ONSUMER-PRICE infla- RENCH consumer confi- ArcelorMittal Luxembourg Iron & Steel 120.4 53.30 4.57 16.6 ... moving average t prices tumbled tion in the developed dence dropped to an- GlaxoSmithKline U.K. Pharmaceuticals 137.5 11.88 3.26 –5.3 –11.4 12650 15.8% in May world surged to an other record low in U C F Vodafone Grp U.K. Mobile Telecom 154.6 1.34 3.08 –10.7 –9.0 from a year earlier, as eight-year high in June as July, worse than economists the housing slump energy and food prices had expected, as households Telefonica S.A. Spain Fixed Line Telecom 122.4 16.45 2.88 –4.9 21.1 12100 deepened nationwide. soared, the Organization for grew more worried about in- Separately, Ameri- Economic Cooperation and flation, unemployment, and HBOS U.K. Banks $28.4 2.73 –5.13% –71.8 –68.8 11550 can consumers’ take Development said. the French economic outlook. Barclays U.K. Banks 51.3 3.25 –4.13 –52.3 –40.9 on the economy re- The Paris-based research National statistics office UBS Switzerland Banks 55.2 19.68 –3.62 –67.2 –57.7 High mained glum in July, organization said the annual Insee said France’s consumer Soc. Generale France Banks 52.1 57.30 –3.39 –51.9 –33.0 11000 although there was some sign that sentiment on the inflation rate in its 30 mem- confidence in July fell to mi- Close Fortis Netherlands Banks 31.0 9.02 –2.80 –63.2 –55.8 economy’s longer-run prospects may be improving, ber countries rose to 4.4% in nus-48, from minus-46 in Low according to a report from the Conference Board. June from 3.9% in May, the June, after minus-42 in May. 10450 The 15.8% drop in home prices for May was the highest since March 2000. Over the month, consumer The July figure is the lowest since Insee started this ...And the rest of Europe’s blue chips 2 9 16 23 30 6 13 20 27 3 11 18 25 steepest ever recorded by the Standard & prices rose 0.6%, down from a 0.7% rise in May. Over survey in 1987. Insee also said producer-price infla- May June July Latest, Latest, Poor’s/Case-Shiller 20-city index since its inception the 12 months to June, energy prices rose 19%, follow- tion rose 0.7% in June from May and 7.3% from June Market value, in local STOCK PERFORMANCE Market value, in local STOCK PERFORMANCE in 2000. The 10-city index fell 16.9%, the biggest de- ing a rise of 15% in the 12 months to May. Food prices of last year. Excluding energy, food and farming out- Company/Country (Industry) in billions (U.S) currency Latest 52-week Three-year Company/Country (Industry) in billions (U.S) currency Latest 52-week Three-year Note: Price-to-earnings ratios are for trailing 12 months cline in its 21-year history. rose 6.5% in the 12 months to June, compared with a put, producer prices in June rose 0.4% from May Banco Santander 119.8 12.28 2.33% –11.8% 21.0% E.ON 125.1 120.32 0.28% 3.9% 62.4% —Roundup 6% gain in the 12 months to May. —Paul Hannon and 2.4% from a year earlier. —Geraldine Amiel Spain (Banks) Germany (Multiutilities) DJIA component stocks Credit Suisse Grp 56.9 50.65 2.32 –36.7 –6.1 Daimler 57.7 38.36 0.26 –42.7 –7.6 Switzerland (Banks) Germany (Automobiles) Volume, CHANGE Stock Symbol in millions Latest Points Percentage Nestle S.A. 174.0 46.26 1.98 –0.5 29.5 BT Grp 32.9 1.98 0.25 –37.2 –13.8 Switzerland (Food Products) U.K. (Fixed Line Telecom) AT&T T 23.50 $30.70 0.07 0.23% Anglo Amer 74.5 28.00 1.82 –3.6 92.4 Assicurazioni Gen 49.3 22.44 0.22 –22.6 –8.5 Alcoa AA 12.00 33.36 0.70 2.14% U.K. (General Mining) Italy (Full Line Insurance) AmExpress AXP 15.10 37.52 2.15 6.08% Astrazeneca 66.7 23.14 1.31 –9.6 –9.7 ING Groep 71.3 20.53 –0.10 –34.5 –18.2 AmIntlGp AIG 57.10 25.85 1.89 7.89% U.K. (Pharmaceuticals) Netherlands (Life Insurance) BankAm BAC 98.40 32.22 4.16 14.83% Unilever 51.3 19.19 1.27 –14.2 3.9 Nokia 105.3 17.77 –0.17 –16.1 34.5 Netherlands (Food Products) Finland (Telecom Equipment) Boeing BA 5.20 63.21 0.87 1.40% BHP Billiton 73.3 16.40 1.11 11.3 102.5 Roche Hldg Part. Cert. 125.2 186.30 –0.27 –13.2 3.0 Caterpillar CAT 4.80 70.99 1.80 2.60% U.S. budget-gap estimates top $500 billion U.K. (General Mining) Switzerland (Pharmaceuticals) Chevron CVX 13.00 82.84 0.35 0.42% Banco Bilbao Viz 69.3 11.85 1.11 –34.6 –14.5 Diageo 49.1 8.76 –0.45 –13.5 11.3 Citigroup C 126.60 18.45 1.02 5.85% Spain (Banks) U.K. (Distillers & Vintners) nomic inequalities and worries over ment spending, and criticized Sen. jection “is an urgent reminder that CocaCola KO 7.30 51.57 0.42 0.82% Siemens 104.4 73.22 0.99 –21.8 14.0 ENI 137.7 22.04 –0.50 –14.5 –7.2 Economic strain job and retirement security. Red ink Obama, saying the Illinois Democrat our fiscal policies must change.” Germany (Electronic Equipment) Italy (Integrated Oil & Gas) Disney DIS 12.40 30.92 0.42 1.38% The sparring came as the White “will not commit to balancing our He added that Sen. McCain “is pro- DuPont DD 5.40 43.56 0.67 1.56% Federal budget surplus/deficit France Telecom 78.9 19.36 0.94 –2.5 –24.8 Tesco 58.0 3.73 –0.56 –8.4 13.3 threatens to snarl House budget office boosted its esti- budget, does not propose to control posing to continue the same Bush eco- France (Fixed Line Telecom) U.K. (Food Retailers & Wholesalers) ExxonMobil XOM 23.70 80.90 0.22 0.27% mate of the federal deficit for fiscal $300 billion spending, and has only one answer nomic policies that put our economy Deutsche Telekom 73.1 10.75 0.94 –15.0 –34.7 AXA S.A. 58.5 18.18 –0.79 –37.4 –19.3 GenElec GE 40.60 28.40 0.71 2.56% Germany (Mobile Telecom) France (Full Line Insurance) candidates’ plans 2009 to $482 billion. With the full to every challenge: raise taxes.” GenMotor GM 18.70 11.90 0.90 8.18% 200 on this dangerous path.” Mr. Furman Novartis 155.5 61.50 0.90 –5.8 –2.9 Total S.A. 181.7 48.54 –0.93 –16.7 –6.0 FY2009 deficit: HewlettPk HPQ 15.90 44.13 1.13 2.63% costs of the wars in Iraq and Afghani- 100 Sen. McCain has promised to bal- said Sen. Obama will “restore balance Switzerland (Pharmaceuticals) France (Integrated Oil & Gas) $482 billion HomeDpt HD 14.00 24.33 1.17 5.05% By John D. McKinnon stan added in, the deficit for 2009 ance the federal budget by 2013, and and fairness” by cutting wasteful Koninklijke Philips Elec 36.1 21.37 0.87 –28.6 –5.8 Royal Dutch Shell 127.4 23.02 –0.97 –19.7 –11.5 And Amy Chozick likely would exceed $500 billion, an- 0 admitted that “today’s news makes spending, shutting corporate loop- Netherlands (Consumer Electronics) U.K. (Integrated Oil & Gas) Intel INTC 42.20 22.23 0.56 2.58% alysts said. The deficit projection –100 that job harder.” But he said the new holes and rolling back the Bush tax Lloyds TSB Grp 35.9 3.21 0.86 –42.5 –34.2 Deutsche Bk 47.8 57.77 –1.01 –42.8 –19.1 IBM IBM 5.40 127.66 1.41 1.12% U.K. (Banks) Germany (Banks) JPMorgChas JPM 44.30 40.75 3.09 8.20% ROJECTIONS suggest the U.S. for 2008 fell somewhat from the –200 projections “should not change our cuts for the wealthy. GDF Suez 138.8 40.61 0.84 18.2 ... L.M. Ericsson Tel B 31.5 64.50 –1.07 –49.6 –51.7 JohnsJohns JNJ 9.50 68.48 0.00 0.00% budget deficit could exceed last official estimate in February, to resolve to make the tough decisions Analysts said both candidates France (Multiutilities) Sweden (Telecom Equipment) –300 McDonalds MCD 9.20 59.70 1.91 3.31% $500 billion next year, compli- $389 billion from $410 billion. Fis- and the genuine effort to reach have made promises that would add Rio Tinto 109.1 51.37 0.73 42.5 168.3 UniCredit 78.4 3.77 –1.63 –40.0 –14.1 P –400 U.K. (General Mining) Italy (Banks) Merck MRK 12.10 32.41 0.35 1.09% cating the debate between Barack cal 2008 ends Sept. 30. across the aisle that are needed.” to government red ink. Compared Microsoft MSFT 57.10 26.11 0.61 2.39% –500 Sanofi-Aventis S.A. 96.3 46.95 0.64 –23.7 –35.2 BNP Paribas S.A. 88.0 62.30 –1.76 –23.8 3.9 ObamaandJohnMcCainoverhowto The budget office also lowered For his part, Sen. Obama again with current tax policy, Sen. France (Pharmaceuticals) France (Banks) Pfizer PFE 29.60 0.93% FY2000 ’02 ’04 ’06 ’08 18.53 0.17 strengthen the economy while not its forecast for economic growth steered clear of promises to balance Obama’s plan would raise govern- HSBC Hldgs 196.0 8.25 0.55 –9.8 –11.5 Banca Intesa 66.5 3.60 –1.84 –35.5 –11.3 ProctGamb PG 15.00 65.54 1.71 2.68% Notes: Fiscal year ends Sept. 30; figures for U.K. (Banks) Italy (Banks) worsening the nation’s finances. this year and next year, and pre- the budget. At a previously sched- ment revenue—$800 billion during 3M MMM 3.20 70.49 0.86 1.24% Deficit projections are balloon- dicted that unemployment would 2008 and 2009 are projections uled roundtable Monday, the candi- the next 10 years—while Sen. Allianz SE 75.8 107.48 0.45 –31.3 0.4 BP 208.1 5.07 –2.45 –12.3 –20.1 Germany (Full Line Insurance) U.K. (Integrated Oil & Gas) UnitedTech UTX 5.30 65.52 1.45 2.26% ing because of lower tax receipts rise. Gross domestic product is ex- Source: Office of Management and Budget date and his top economic advisers McCain’s tax plan would lower gov- BASF 61.1 41.42 0.39 –13.1 38.3 Royal Bk of Scot 64.2 2.01 –2.67 –60.5 –59.0 Verizon VZ 12.90 34.13 0.53 1.58% and government spending on eco- pected to increase by 1.6% this year, sought to showcase some of his pro- ernment revenue by about $600 bil- Germany (Commodity Chemicals) U.K. (Banks) WalMart WMT 16.60 57.45 1.43 2.55% nomic-stimulus programs. The gap according to the budget office, that’s really going to throw a wet posals aimed at reducing what the lion, according to analysts at the Tax Sources: Dow Jones Indexes; WSJ Market Data Group Source: WSJ Market Data Group increasingly is threatening to play down from the February prediction blanket over very ambitious plans,” group considers economic inequali- Policy Center, a think-tank consor- havoc with the two presidential can- of 2.7%. Growth next year is ex- said Robert Bixby, executive director ties. Those include ending the Bush tium in Washington. didates’ domestic-policy plans, par- pected to be 2.2%, down from 3%. of the Concord Coalition, a group tax cuts for Americans making more But Sen. Obama’s health-care plan ticularly Sen. McCain’s big tax cuts While the 2009 deficit would be that advocates fiscal responsibility. than $250,000 and implementing a would cost the government at least and Sen. Obama’s promised health- a record in nominal terms, it is still “A lot of people are going to ask, ‘Can middle-class tax cut of up to $1,000 $65 billion a year, and possibly more, Hedge funds Credit-default swaps: European companies care expansion, and could force ma- within the range of much of the we afford this?’ ” per family to help offset the rising analysts said. The McCain camp esti- Tracking Dow Jones TOTAL RETURN for rolling periods, net of fees* At its most basic, the pricing of credit-default swaps measures how much a buyer has to pay to purchase-and Hedge Benchmark One week One month One quarter Year to date One year jor changes in the winner’s agenda. 1980s and 1990s when measured by In a statement, Sen. McCain dis- price of fuel and food. Sen. Obama mates all of Sen. Obama’s spending in- how much a seller demands to sell-protection from default on an issuer's debt. The snapshot below gives a Convertible Arbitrage -0.31% -1.78% -1.7% -7.5% -7.5% On Monday, Sen. McCain, the Re- the yardstick economists prefer: as tanced himself from the Bush admin- has also proposed a second stimulus creases at almost $1 trillion. sense which way the market was moving yesterday. credit Merger Arbitrage 0.20% 0.28% 1.6% 0.7% 3.2% publican candidate, sought to turn a percentage of the economy. By istration over the deficit. “There is no plan—including at least $50 billion Sen.McCain’s camp says he plans Event Driven -0.50% -2.51% -3.3% -2.4% -2.4% the new deficit numbers to his short- that measurement, the 2009 deficit more striking reminder of the need to in tax rebates to individuals and fam- savings of almost $1 trillion over the Distressed Securities 0.51% -2.03% -2.8% -6.9% -10.8% Showing the biggest improvement... And the most deterioration term political advantage, without would be 3.3% of the gross domestic reverse the profligate spending that ilies—on top of the $168 billion plan next decade.But budget experts said markets & Equity Market Neutral 0.12% -1.18% 0.8% 0.2% -0.2% conceding much to those longer- product. Fiscal 2008’s $389 billion has characterized this administra- that is already in effect. Sen. McCain hasn’t come out with Equity Long/Short -1.37% -4.18% 0.9% -2.0% 5.1% CHANGE, in basis points CHANGE, in basis points Yesterday Yesterday Five-day 28-day Yesterday Yesterday Five-day 28-day term realities. Democratic rival Sen. deficit accounts for 2.7% of GDP. tion’s fiscal policy.” One of his top economic advis- many specifics. *Estimates as of 07/28/08, after fees; Source: www.djhedgefundindexes.com Obama sought to keep the focus on “I think if you’re taking office with He cited his own “unmatched ers, Jason Furman, addressed the —Elizabeth Holmes Thomson 574 –21 –99 –48 Bco de Sabadell 168 1 11 16 dealmakers Rentokil Initial 1927 108 –14 38 76 Allied Irish Bks 122 2 –13 –10 the current shaky economy, eco- the deficit at around $500 billion, record” of fighting wasteful govern- deficit figures, saying the new pro- contributed to this article. Credit derivatives Tomkins 272 –11 –34 48 Rexam 212 2 –6 43 Spreads on credit derivatives are one way the market rates FCE Bk 839 –11 –37 –96 TUI AG 454 2 –16 –3 creditworthiness. Regions that are treading in rough waters can Cie de St Gobain 199 –11 –39 23 J Sainsbury 154 2 223 see spreads swing toward the maximum—and vice versa. Indexes Valeo 238 –11 –24 12 MAN AG 80 3 –5 –6 China details energy bureau’s role below are for five-year swaps. M real 1455 –9 187 362 Norske Skogindustrier 1180 5 81 183 German inflation remains high Fiat 232 –9 –17 8 Kaupthing banki 1006 5 53 208 BEIJING—China spelled out in It will also be in charge of approv- Markit iTraxx Indexes SPREAD RANGE, in pct. pts. Alcatel Lucent 514 –8 –14 –15 Ld Secs PLC 267 6 12 50 greater detail the role and structure ing the biggest investments over- By Roman Kessler Economists hadn’t expected in- mist at Goldman Sachs in Frankfurt, Mid-spread, since most recent roll Evonik Degussa 130 –8 –53 –75 Industriali Riunite 242 13 71 of the newly established National seas on energy resources, including flation to rise as much from June said Germany’s 0.6% monthly infla- Index: series/version in pct. pts. Mid-price Coupon Maximum Minimum Average Source: Markit Group Energy Administration, which will uranium, and negotiating energy FRANKFURT—Inflation pres- and had even predicted the July rate tion rate indicates euro-zone annual Europe: 9/1 0.90 103.17% 0.02% 1.32 0.64 0.91 Eur. High Volatility: 9/1 1.78 103.35 0.03 2.10 1.23 1.67 integrate energy policies and ap- contracts with foreign governments sures in Germany showed no signs would fall slightly from a year ago, inflation will remain at 4.0%, un- Behind Asia’s deals: Bank revenue rankings, North Asia prove related investments. and institutions. of easing, as rising energy costs and according to a Dow Jones News- changed from June. Europe Crossover: 9/1 5.20 104.69 0.07 5.96 4.00 4.91 The bureau will be independent But the bureau will have a shared summer holiday tickets kept the con- wires survey of 13 analysts. That is twice the just-under-2% Asia ex-Japan IG: 9/1 1.37 104.80 0.03 2.10 0.85 1.33 Behind every IPO, bond offering, merger deal or syndicated loan is one or more investment banks. Here are of the National Development and Re- responsibility with the commission sumer-price index stubbornly high, Data on negotiated wages, an- level that the ECB regards as its Japan: 9/1 1.13 104.94 0.02 1.61 0.65 1.08 investment banks ranked by year-to-date revenues from recent deals. Note: Data as of July 28 form Commission, the former top in deciding on changes to domestic and negotiated wages in April rose other gauge of inflation, showed price-stability target. PERCENTAGE OF TOTAL REVENUE energy-planning agency, paving the energy prices, the commission said. at their fastest pace in 12 years. German workers and employees re- The euro-zone-inflation aggre- In percentage points Revenue, Market Equity Debt Mergers & WSJ.com Spreads in millions share capital markets capital markets acquisitions Loans way for the re-establishment of an Thebureauconsistsofninedepart- The CPI for Germany, Europe’s ceived 3.5% higher salaries in April gate is scheduled for release Thurs- Citi $69 5.8% 56% 10% 32% 2% energy ministry, analysts say. ments, four of them in charge of sepa- largest economy, held steady at a than in the same month a year ear- day morning. Germany contrib- Follow the markets throughout Spreads on five- Asia ex-Japan IG 2.00 t China Investment Corp 55 4.7% 16% 24% 3% 57% Thenewbureau willtake over the rate energy sectors and five in charge 3.3% annual increase in July, un- lier, thanks to large public-sector utes about 27% to the euro-zone the day, with updated stock year swaps for 1.50 Credit Suisse 52 4.4% 66% …% 28% 6% commission’sresponsibilitytochart of policy, development planning, en- changed from June, according to and chemical-workers settlements, measure. quotes, news and commentary corporate debt;

energy strategy and policy and man- ergy conservation and international preliminary data released Tuesday. a quarterly survey showed. In Janu- The ECB’s rate-setting govern- based on Markit 1.00 Merrill Lynch 49 4.2% 59% 6% 35% …% at WSJ.com/Europe. t Morgan Stanley 48 4.1% 92% …% 7% …% age the sector, the commission said. cooperation, the commission said. The index showed a steep 0.6% in- ary, salaries were up 3.3% from the ing council raised its key interest Also, receive email alerts that iTraxx indexes. 0.50 Index roll Japan UBS 68% 3% 29% …% The bureau will be responsible It is the first time since crease from June, twice the year before. rate July 3 to 4.25% from 4% on summarize the day’s trading in 48 4.1% for managing strategic oil reserves, 1993—when the Ministry of Energy monthly pace reported for May, The figures “are obviously no re- fears that high oil and food prices Europe and Asia. 0 Goldman Sachs 44 3.8% 56% 2% 42% …% including building and releasing re- was dissolved—that a central body mainly driven by double-digit in- lief for the” European Central Bank, could cause wages to soar and also To sign up, go to Feb. Mar. April May June July BNP Paribas 38 3.2% 41% 8% 31% 19% 2008 CITIC Group 35 2.9% 50% 33% 13% 4% serves and supervising commercial hasbeensetuptodealwithenergyis- creases for holiday homes and pack- said ING economist Carsten Brzeski. lead to higher prices for other goods WSJ.com/Online Today reserves, the commission said. sues. —Renya Peng age tours. Dirk Schumacher, senior econo- and services. Source: Markit Group Source: Dealogic 24 WEDNESDAY, JULY 30, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. WEDNESDAY, JULY 30, 2008 9 Advertisement [ INTERNATIONAL INVESTMENT FUNDS www.WSJ.com ] Advertisement ECONOMY & POLITICS Continued from previous page NAV — %RETURN — NAV — %RETURN — NAV — %RETURN — FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR NAV — %RETURN — FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR Eurozone Agg Eq A EU EQ IRL 07/28 EUR 718.67 –25.0 –27.4 NS Alpha Short Bd SEK -B- NO MM LUX 07/29 SEK 10.08 2.4 3.8 3.2 Eurozone Agg Eq B EU EQ IRL 07/28 EUR 1024.13 –24.7 –26.9 –6.2 Alpha Short Bd SEK -C- NO MM LUX 07/29 SEK 21.05 2.3 3.7 3.1 PF (LUX)-Digital Comm-Pca OT EQ LUX 07/28 USD 106.18 –22.3 –12.1 6.1 Glbl Bd (EuroHdg) A GL BD IRL 07/28 EUR 1260.54 –2.5 –1.5 –0.3 Alpha Short Bd SEK -D- NO MM LUX 07/29 SEK 8.75 2.3 3.7 3.1 PF (LUX)-East Eu-Pca EU EQ LUX 07/28 EUR 356.14 –30.7 –24.1 –1.6 Glbl Bd (EuroHdg) B GL BD IRL 07/28 EUR 1325.29 –2.2 –0.9 0.3 Bond Fd EUR -C- EU BD LUX 07/29 EUR 1.21 0.2 1.4 0.7 PF (LUX)-Emg Mkts LC-Pca GL EQ LUX 07/29 USD 176.37 –23.6 –11.2 14.3 Glbl Bd A EU BD IRL 07/28 EUR 945.55 –6.2 –8.7 –6.0 Bond Fd EUR -D- EU BD LUX 07/29 EUR 0.49 0.2 1.3 0.7 PF (LUX)-Emg Mkts-Pca GL EQ LUX 07/29 USD 579.65 –21.0 –10.2 14.2 Glbl Bd B EU BD IRL 07/28 EUR 998.19 –5.9 –8.1 –5.4 Bond Fd SEK -C- NO BD LUX 07/29 SEK 37.93 0.4 1.7 1.3 PF (LUX)-Eu Indx-Pca EU EQ LUX 07/28 EUR 106.95 –21.7 –22.8 –5.3 n THE NATIONAL INVESTOR Ex-Pentagon official linked to Kurdish oil Glbl Real Estate A OT EQ IRL 07/28 USD 1110.36 –12.7 –13.7 –2.2 Bond Fd SEK -D- NO BD LUX 07/29 SEK 11.38 –0.7 0.6 0.7 PF (LUX)-EUR Bds-Pca EU BD LUX 07/28 EUR 355.78 –1.5 –1.8 –1.1 Glbl Real Estate B OT EQ IRL 07/28 USD 1135.05 –12.4 –13.2 –1.6 Corp. Bond Fd EUR -C- EU BD LUX 07/29 EUR 1.16 –1.4 –2.0 –0.6 PO Box 47435, Abu Dhabi, UAE Web:www.tni.ae PF (LUX)-EUR Bds-Pdi EU BD LUX 07/28 EUR 279.40 –1.5 –1.8 –1.1 Glbl Real Estate EH-A OT EQ IRL 07/28 EUR 1003.33 –14.5 –17.4 –6.1 Corp. Bond Fd EUR -D- EU BD LUX 07/28 EUR 0.91 –0.8 –1.9 –0.6 Email: [email protected] Tel:+971 2 619 2300 tional PF (LUX)-EUR Cp Bd-Pca EU BD LUX 07/28 EUR 128.96 –1.7 –1.9 –0.9 is seeking rights to drill talks said they involve Alexander Perle said Mr. Mirtchev is “justly… ment, Mr. Talabani said “one of my Glbl Real Estate SH-B OT EQ IRL 07/28 GBP 95.02 –13.4 –15.7 –4.1 Corp. Bond Fd SEK -C- NO BD LUX 07/29 SEK 11.91 –1.3 –0.8 0.2 MENA Real Estate Acc Fund OT EQ ARE 07/15 USD 13.99 –5.4 26.6 26.3 PF (LUX)-EUR Cp Bd-Pdi EU BD LUX 07/28 EUR 94.01 –1.7 –1.9 –0.9 Perle denies having there, the documents say. Potential Mirtchev, a Washington consultant proud of his influence on the liberal- duties…is to seek out potential in- Glbl Strategic Yield A EU BD IRL 07/28 EUR 1452.78 –2.8 –0.2 1.7 Corp. Bond Fd SEK -D- NO BD LUX 07/29 SEK 9.36 –1.1 –0.6 0.3 UAE Blue Chip Fund Acc AS EQ ARE 07/17 AED 11.94 2.4 31.1 20.2 PF (LUX)-EUR HiYld-Pca EU BD LUX 07/28 EUR 130.98 –8.5 –8.7 –3.7 Glbl Strategic Yield B EU BD IRL 07/28 EUR 1541.38 –2.4 0.4 2.4 Danish Mortgage Bond Fd EURNO -ID- BD LUX 07/29 EUR 96.85 NS NS NS backers include two Turkish compa- and adviser to the government of Ka- ization of the Kazakh economy.” vestors for our new, growing econ- PF (LUX)-EUR HiYld-Pdi EU BD LUX 07/28 EUR 84.71 –8.5 –8.7 –3.7 Japan Equity A JP EQ IRL 07/28 JPY 16150.00 –13.1 –25.6 –9.5 Danish Mortgage Bond Fd EURNO -RC- BD LUX 07/29 EUR 96.82 NS NS NS PF (LUX)-EUR Liq-Pca EU MM LUX 07/28 EUR 132.83 2.3 3.5 3.4 role in a consortium nies as well as Kazakhstan, accord- zakhstan, and an associate of his, Asked about pursuing oil conces- omy in Iraqi Kurdistan as well as re- Japan Equity B JP EQ IRL 07/28 JPY 17067.00 –12.8 –25.1 –8.9 Danish Mortgage Bond Fd SEKNO -ID- BD LUX 07/29 SEK 99.28 NS NS NS PF (LUX)-EUR Liq-Pdi EU MM LUX 07/28 EUR 99.22 2.3 3.5 3.4 Multi St Cash Plus EH-A GL EQ IRL 07/28 EUR 1026.21 1.4 NS NS Danish Mortgage Bond Fd SEKNO -RC- BD LUX 07/29 SEK 915.32 NS NS NS ing to individuals involved. Kaloyan Dimitrov. Mr. Perle has at- sions, Mr. Perle said, “I am not in- spond…to all legitimate requests PF (LUX)-Europ Eq-Pca EU EQ LUX 07/28 EUR 446.47 –26.8 –30.1 –8.0 PacBasn (Ex-Jap) Eq A AS EQ IRL 07/28 USD 2136.61 –19.3 –12.4 11.9 Flexible Bond Fd -C- NO BD LUX 07/29 SEK 20.06 1.7 2.8 2.5 PF (LUX)-EuSust Eq-Pca EU EQ LUX 07/28 EUR 140.19 –23.9 –28.5 –9.6 seeking rights to drill AK’s chief executive is Aydan tended events promoting the inter- volved in any consortium involving for investment information.” PacBasn (Ex-Jap) Eq B AS EQ IRL 07/28 USD 2260.39 –19.0 –11.9 12.6 Flexible Bond Fd -D- NO BD LUX 07/29 SEK 11.36 1.7 2.8 2.5 PF (LUX)-Gl Em Dbt-Pca GL BD LUX 07/28 USD 199.68 –0.5 5.7 6.2 Pan European Eq A EU EQ IRL 07/28 EUR 1043.72 –23.2 –25.9 –7.9 Kodaloglu, who, like Mr. Perle, has ests of Kazakhstan, an oil-rich na- Mr. Mirtchev or Mr. Dimitrov, nor Kurdish authorities have been PF (LUX)-Gl Em Dbt-Pdi GL BD LUX 07/28 USD 142.37 –0.5 5.7 6.2 Pan European Eq B EU EQ IRL 07/28 EUR 1104.35 –22.9 –25.5 –7.3 n SEB Global Hedge n TRIGON CAPITAL By Susan Schmidt been involved with the tion whose ruler, Nursul- am I ‘framing plans for a consor- granting oil-drilling contracts even PF (LUX)-Gl Eq Sel-Pca GL EQ LUX 07/28 USD 20.38 –16.2 –16.2 –0.7 US Equity A US EQ IRL 07/28 USD 966.58 –16.7 –12.8 0.5 Global Hedge I SEK -C- OT OT LUX 07/29 SEK 100.91 –5.0 –7.4 –1.3 Phone +372 667 9208 Fax +372 667 9221 E-mail [email protected] Website www.trigoncapital.com PF (LUX)-Gr China-Pca AS EQ LUX 07/29 USD 326.32 –23.7 –11.8 22.1 US Equity B US EQ IRL 07/28 USD 1026.16 –16.4 –12.3 1.1 Global Hedge I SEK -D- OT OT LUX 07/29 SEK 92.22 –7.7 –10.0 –2.7 Central and Eastern EuropeanEE EUR EQ EST 07/29 EEK 178.52 –33.4 –40.5 –14.9 And Glenn R. Simpson American Turkish Council, tan Nazarbayev, is in- tium’ ” involving either one. He de- though Iraq’s central government PF (LUX)-Indian Eq-Pca EA EQ LUX 07/29 USD 313.04 –40.9 –17.0 16.2 US Small Cap A US EQ IRL 07/28 USD 1471.20 –14.4 –14.3 0.4 New Europe Small Cap EUR EE EQ EST 07/29 EEK 97.55 –30.0 –39.5 –10.6 an advocacy group in Wash- volved in a long-running clined to elaborate. and the Bush administration want PF (LUX)-Jap Index-Pca JP EQ LUX 07/29 JPY 12333.05 –13.2 –23.9 –7.7 US Small Cap B US EQ IRL 07/28 USD 1562.74 –14.1 –13.8 1.0 n SEB Sicav 1 Second Wave EUR EE EQ EST 07/29 EEK 210.18 –23.5 –27.7 5.5 PF (LUX)-Jp Eq Sel-Ica JP EQ LUX 07/29 JPY 11515.41 –14.1 –28.8 –12.4 Choice Emerging Mkts Fd GL EQ LUX 07/29 USD 2.68 –19.6 –4.5 17.8 Influential former Pentagon offi- ington. She didn’t didn’t re- U.S. investigation of 1990s- Brian Shaughnessy, a lawyer for them to hold off until a national oil PF (LUX)-Jp Eq Sel-Pca JP EQ LUX 07/29 JPY 11270.31 –14.4 –29.2 –12.9 n SEB ASSET MANAGEMENT S.A. PF (LUX)-JpEq130/30-Pca JP EQ LUX 07/29 JPY 5966.40 –13.4 –25.7 –13.2 www.seb.se n SEB Sicav 2 cial Richard Perle has been explor- spond to requests for com- era oil-company bribery. Mr. Mirtchev, said his client “is not law is passed. The K18 concession, PF (LUX)-MidEast&NorAfr-PcaUS BA LUX 07/28 USD 96.82 NS NS NS SEB Fund 1 Choice Asia SmCap exJpn AS EQ LUX 07/29 SEK 24.52 –26.6 –36.0 –0.3 ing going into the oil business in ment. Phyllis Kaminsky, Mr. Perle has publicly working on oil related projects in Ka- which is estimated to hold 150 mil- PF (LUX)-Pacif Idx-Pca AS EQ LUX 07/29 USD 264.74 –17.0 –7.2 14.7 Choice Global Value -C- GL EQ LUX 07/29 SEK 87.66 –24.8 –31.2 –9.3 Europe Chance/Risk Fd EU EQ LUX 07/29 EUR 1225.11 –27.9 –32.0 –8.4 Iraq and Kazakhstan, according to who identified herself as lauded President Naz- zakhstan or Kurdistan with Richard lion or more barrels of oil, would po- PF (LUX)-Piclife-Pca CH BA LUX 07/28 CHF 772.90 –9.0 –10.7 –2.2 Choice Japan Fd JP EQ LUX 07/29 JPY 67.33 –14.8 –27.5 –12.9 PF (LUX)-PremBrnds-Pca OT EQ LUX 07/28 EUR 57.90 –24.7 –29.6 –7.7 Choice Jpn Chance/Risk JP EQ LUX 07/29 JPY 75.23 –15.9 –26.8 –8.3 people with knowledge of the mat- the U.S. contact for Ms. arbayev as “visionary and Perle, nor have they done any busi- tentially be operated by Houston- n YUKI MANAGEMENT & RESEARCH CO., LTD. PF (LUX)-Rus Eq-Pca EE EQ LUX 07/28 USD 78.99 NS NS NS Choice NthAmChance/Risk US EQ LUX 07/29 USD 4.72 –9.6 –6.2 4.4 ter and documents outlining possi- Kodaloglu, said she herself wise,” according to a publi- ness deals of this nature.” A lawyer based Endeavour International, ac- PF (LUX)-Security-Pca GL EQ LUX 07/28 USD 92.86 –16.8 –18.3 NS Europe 2 Fd EU EQ LUX 07/29 EUR 1.06 –26.7 –30.5 –7.9 Tel: +81-3-5299-3277 www.yukijapan.co.jp YMR-N Growth Fund JP EQ IRL 07/29 JPY 12947.00 –22.8 –37.3 –15.1 PF (LUX)-Sm Cap Eu-Pca EU EQ LUX 07/28 EUR 499.12 –19.1 –28.0 –2.6 Europe 3 Fd EU EQ LUX 07/29 GBP 3.69 –21.5 –18.3 –0.9 ble deals. was aware of the drilling cation distributed by the for Mr. Dimitrov didn’t respond to cording to documents and people fa- YMR-N Japan Fund JP EQ IRL 07/29 JPY 14305.00 –17.8 –32.6 –9.1 PF (LUX)-US Eq-Ica US EQ LUX 07/28 USD 115.26 –10.4 –7.0 4.0 Global Chance/Risk Fd GL EQ LUX 07/28 EUR 0.65 –17.7 –24.4 –7.6 n YMR-N Low Price Fund JP EQ IRL 07/29 JPY 19107.00 –16.3 –31.5 –9.6 Mr. Perle, one of a group of U.S. plan but referred questions Kazakh Embassy in Wash- questions about oil discussions. miliar with the discussions. A PF (LUX)-USA Index-Pca US EQ LUX 07/28 USD 98.20 –15.3 –14.3 –0.5 Global Fd GL EQ LUX 07/29 USD 2.55 –13.6 –13.4 2.3 SG ASSET MANAGEMENT HTTP://WWW.SGAM.COM YMR-N Small Cap Fund JP EQ IRL 07/29 JPY 9076.00 –26.8 –42.3 –19.1 PF (LUX)-USD Bds-Pca US BD LUX 07/28 USD 478.75 1.4 6.5 5.4 Intl Mixed Fd -C- NO BA LUX 07/29 USD 30.47 –8.5 –6.1 4.4 Eq. China A AS EQ LUX 07/28 USD 22.18 –33.0 –19.1 22.9 security experts who began pushing about it to Mr. Perle. ington. A spokesman for Qubat Tala- spokeswoman for Endeavour said, Yuki Mizuho Gen Jpn III JP EQ IRL 07/29 JPY 7215.00 –22.3 –34.1 NS PF (LUX)-USD Bds-Pdi US BD LUX 07/28 USD 361.71 1.4 6.6 5.4 Intl Mixed Fd -D- NO BA LUX 07/29 USD 21.50 –8.5 –6.1 5.8 Eq. Pacific A AS EQ LUX 07/28 USD 10.58 –23.7 –11.8 16.7 Yuki Mizuho Jpn Dyn Gro AS EQ IRL 07/29 JPY 7731.00 –20.4 –35.4 –16.0 the case for toppling Iraqi dictator “Richard would know Mr. Perle said by email bani, the Kurdistan regional govern- “At this point we wouldn’t have any- PF (LUX)-USD Liq-Pca US MM LUX 07/28 USD 129.19 1.7 3.3 4.2 Wireless Fd OT EQ LUX 07/29 EUR 0.14 –27.7 –28.9 –3.9 Richard Perle n SGAM Fund Yuki Mizuho Jpn Exc 100 JP EQ IRL 07/29 JPY 9975.00 –20.4 –32.6 –14.3 PF (LUX)-USD Liq-Pdi US MM LUX 07/28 USD 87.09 1.7 3.3 4.2 Saddam Hussein about a decade the most,” Ms. Kaminsky that Mr. Mirtchev is a ment’s representative in the U.S., thing definitely going on, and we n SEB Fund 2 Bonds CHF A CH BD LUX 07/28 CHF 26.09 0.0 0.9 –0.3 Yuki Mizuho Jpn Gen JP EQ IRL 07/29 JPY 12146.00 –21.0 –35.9 –13.5 PF (LUX)-Water-Pca GL EQ LUX 07/28 EUR 128.66 –17.6 –17.3 –1.3 Choice Asia ex. Japan Fd AS EQ LUX 07/29 USD 7.11 –21.8 –15.0 9.4 Bonds ConvEurope A EU BD LUX 07/25 EUR 30.73 5.7 8.6 9.3 Yuki Mizuho Jpn Gro JP EQ IRL 07/29 JPY 9157.00 –25.8 –38.9 –17.2 ago, has been discussing a possible said. “He is involved, I know that.” friend of his who once spent a night confirmed that the envoy had been wouldn’t comment on anything that PF (LUX)-WldGovBds-Pca GL BD LUX 07/28 USD 153.67 4.4 12.0 7.3 Currency Alpha EUR -IC- OT OT LUX 07/29 EUR 10.69 4.6 4.4 NS Bonds Eur Corp A EU BD LUX 07/28 EUR 21.25 –3.2 –3.9 –1.4 Yuki Mizuho Jpn Inc JP EQ IRL 07/29 JPY 11563.00 –11.8 –28.1 –7.1 PF (LUX)-WldGovBds-Pdi GL BD LUX 07/28 USD 130.04 4.4 12.0 7.3 deal with officials of northern Iraq’s People with knowledge of the at his vacation home in France. Mr. approached by Mr. Perle. In a state- hadn’t been publicly announced.” Currency Alpha EUR -RC- OT OT LUX 07/29 EUR 10.65 4.3 3.9 NS Bonds Eur Hi Yld A EU BD LUX 07/28 EUR 19.02 –10.3 –11.0 –4.1 Yuki Mizuho Jpn Lg Cap AS EQ IRL 07/29 JPY 7537.00 –20.1 –31.6 NS Kurdistan regional government, in- n POLAR CAPITAL PARTNERS LIMITED Currency Alpha SEK -ID- OT OT LUX 07/29 SEK 103.61 NS NS NS Bonds EURO A EU BD LUX 07/28 EUR 36.71 –0.6 0.5 0.3 Yuki Mizuho Jpn LowP JP EQ IRL 07/29 JPY 15188.00 –16.2 –29.5 –9.7 Yuki Mizuho Jpn PGth JP EQ IRL 07/29 JPY 12131.00 –26.1 –34.6 –15.1 International Fund Managers (Ireland) Limited PH - 353 1 670 660 Fax - 353 1 670Currency 1185 Alpha SEK -RC- OT OT LUX 07/29 SEK 100.69 NS NS NS Bonds Europe A EU BD LUX 07/28 EUR 35.41 –1.0 –0.5 0.0 cluding its Washington envoy, ac- Generation Fd 80 OT OT LUX 07/29 SEK 7.85 –17.0 NS NS Yuki Mizuho Jpn SmCp JP EQ IRL 07/29 JPY 9018.00 –28.8 –42.0 –19.2 Asia Ex-Japan Fund USD AS EQ IRL 05/20 USD 1.12 –93.7 –93.8 –72.2 Bonds US MtgBkSec A US BD LUX 07/28 USD 21.81 –13.5 –10.2 –2.9 cording to these people and the doc- Nordic Focus EUR NO EQ LUX 07/29 EUR 79.63 –19.5 NS NS Yuki Mizuho Jpn Val Sel AS EQ IRL 07/29 JPY 7870.00 –16.3 –29.8 –11.5 Global Technology OT EQ IRL 07/28 USD 12.00 –17.1 –18.4 0.1 Bonds US OppsCoreplus A US BD LUX 07/28 USD 31.39 –0.3 4.6 4.4 Nordic Focus NOK NO EQ LUX 07/29 NOK 80.02 NS NS NS Yuki Mizuho Jpn YoungCo AS EQ IRL 07/29 JPY 3999.00 –30.0 –48.8 –33.2 Japan Fund USD JP EQ IRL 07/29 USD 15.29 –9.2 –16.7 –7.0 Bonds World A GL BD LUX 07/28 USD 38.99 4.9 12.4 8.4 uments. Nordic Focus SEK NO EQ LUX 07/29 SEK 80.18 –19.4 NS NS Eq. ConcentratedEuropeA EU EQ LUX 07/28 EUR 30.61 –24.2 –26.8 –9.0 n Yuki 77 Series It would involve a tract called n Hemisphere Management (Ireland) Limited Eq. Eastern Europe A EU EQ LUX 07/28 EUR 31.79 –27.9 –23.6 –0.3 n SEB Fund 3 Yuki 77 Excellent JP EQ IRL 07/29 JPY 6967.00 –21.3 –32.2 –12.6 Columbus USD A GL EQ CYM 06/30 USD 100.16 –0.7 –1.5 NS Eq. Equities Global Energy OT EQ LUX 07/28 USD 24.34 –3.4 8.7 15.2 K18, near the Kurdish city of Erbil, Choice Asia Eq. ex Japan Fd AS EQ LUX 07/29 USD 1.28 –21.4 –14.6 11.2 Yuki 77 General JP EQ IRL 07/29 JPY 9217.00 –19.8 –32.5 –11.7 Discovery USD A OT OT CYM 06/30 USD 112.56 0.9 11.9 7.2 Eq. Euroland A EU EQ LUX 07/28 EUR 12.86 –25.6 –26.7 –7.5 Choice North America Eq. Fd US EQ LUX 07/29 USD 2.02 –16.9 –16.2 –1.4 Yuki 77 Growth JP EQ IRL 07/29 JPY 9197.00 –25.0 –37.6 –17.8 according to documents describing Elbrus USD A GL EQ CYM 06/30 USD 15.52 –5.2 19.2 28.7 Eq. Euroland MidCapA EU EQ LUX 07/28 EUR 22.56 –22.1 –30.7 –7.9 Ethical Global Fd GL EQ LUX 07/29 USD 0.93 –15.2 –16.6 0.3 Europn Conviction USD B EU EQ CYM 06/30 USD 112.80 –1.2 4.9 6.2 Eq. EurolandCyclclsA EU EQ LUX 07/28 EUR 20.08 –20.8 –19.1 0.7 n Yuki Chugoku Series the plan. A consortium founded by Ethical Sweden Fd NO EQ LUX 07/29 SEK 36.86 –17.3 –25.3 –0.1 Europn Forager USD B OT OT CYM 06/30 USD 199.16 –2.9 –5.6 10.9 Eq. EurolandFinancialA OT EQ LUX 07/28 EUR 13.57 –27.1 –31.2 –14.3 Yuki Chugoku Jpn Gen JP EQ IRL 07/29 JPY 9513.00 –18.3 –35.8 –14.5 AK Group Interna- Europe Fd EU EQ LUX 07/29 USD 2.78 –21.7 –19.9 11.3 Turkish company Gl Utilities Abs Rtn USD A OT OT CYM 06/30 USD 109.74 –8.6 –2.2 4.2 Eq. Glbl Emg Cty A GL EQ LUX 07/28 USD 10.95 –19.0 –7.9 12.5 Yuki Chugoku Jpn Gro JP EQ IRL 07/29 JPY 7849.00 –22.2 –29.9 –11.9 Global Equity Fd GL EQ LUX 07/29 USD 1.63 –13.9 –13.9 3.2 Eq. Global A GL EQ LUX 07/28 USD 30.49 –20.3 –21.0 –4.4 Yuki Chugoku Jpn Inc JP EQ IRL 07/29 JPY 7797.00 –10.2 –22.8 –7.3 Japan Abs Ret USD A AS EQ CYM 06/30 USD 144.42 –7.7 –18.7 –6.4 Index Linked Bd Fd SEK OT BD LUX 07/29 SEK 12.78 2.3 6.0 3.7 Eq. Global Technol A OT EQ LUX 07/28 USD 5.91 –16.7 –23.7 –1.1 Yuki Chugoku JpnLowP JP EQ IRL 07/29 JPY 11064.00 –22.0 –36.0 –10.6 Latin America USD A GL EQ CYM 06/30 USD 14.24 4.5 10.1 20.4 Medical Fd OT EQ LUX 07/29 USD 3.53 –8.4 –2.7 0.5 Eq. Gold Mines A OT EQ LUX 07/28 USD 28.01 –6.5 8.6 7.8 Yuki Chugoku JpnPurGth JP EQ IRL 07/29 JPY 7158.00 –18.2 –34.6 –13.3 Paragon Limited USD A EU EQ CYM 06/30 USD 350.13 27.4 38.4 32.6 Short Medium Bd Fd SEK NO MM LUX 07/29 SEK 9.08 2.2 3.6 3.0 Eq. Japan A JP EQ LUX 07/28 JPY 1130.18 –14.6 –27.0 –10.8 UK Fund USD A OT OT CYM 06/30 USD 162.53 2.2 –2.3 4.1 Technology Fd OT EQ LUX 07/29 USD 2.38 –16.6 –12.0 6.0 Eq. Japan Sm Cap A JP EQ LUX 07/29 JPY 1288.33 –24.4 –36.6 –26.5 n Yuki Daishi Series World Fd GL EQ LUX 07/29 USD 2.43 –9.3 –9.3 11.2 n PT CIPTADANA ASSET MANAGEMENT Eq. Japan Target A JP EQ LUX 07/29 JPY 1888.57 –6.7 –20.7 –9.2 Yuki Daishi General JP EQ IRL 07/29 JPY 10517.00 –18.2 –34.0 –12.3 Jakarta faces Eq. Switzerland A CH EQ LUX 04/17 CHF 36.35 –16.6 –21.3 –4.3 Tel: 521-3479 Fax: 521-3478 Website: www.ciptadana-asset.com n SEB Fund 4 n Yuki Hokuyo Japan Series Indonesian Grth Fund EA EQ CYM 07/23 USD 112.16 NS –4.2 24.8 Eq. UK A UK EQ LUX 07/28 GBP 12.33 –27.7 –29.6 –12.3 Short Bond Fd EUR EU MM LUX 07/29 EUR 1.27 1.6 2.3 2.6 Yuki Hokuyo Jpn Gen JP EQ IRL 07/29 JPY 7313.00 –17.1 –30.9 –10.1 Short Bond Fd SEK NO MM LUX 07/29 SEK 21.46 2.3 3.7 3.0 Eq. US ConcenCore A US EQ LUX 07/28 USD 22.84 –15.0 –11.6 1.9 n RUSSELL INVESTMENT GROUP Yuki Hokuyo Jpn Gro JP EQ IRL 07/29 JPY 6200.00 –22.9 –36.8 –17.1 blackouts as coal Eq. US Lg Cap Gr A US EQ LUX 07/28 USD 18.42 –8.4 –4.7 3.7 Short Bond Fd USD US MM LUX 07/29 USD 2.48 1.1 2.9 3.7 Yuki Hokuyo Jpn Inc JP EQ IRL 07/29 JPY 7542.00 –10.5 –27.2 –9.0 Multi-Style, Multi-Manager Funds www.russell.com Eq. US Mid Cap A US EQ LUX 07/28 USD 32.44 –17.1 –6.8 8.3 Actions France A EU EQ IRL 07/28 EUR 777.45 –21.0 NS NS n SEB Fund 5 Eq. US Multi Strg A US EQ LUX 07/28 USD 25.29 –12.2 –13.5 –0.7 n Yuki Nishi Nippon City Japan Series Core Eurozone Eq B EU EQ IRL 07/28 EUR 892.61 NS NS NS Alpha Bond Fd SEK -A- NO BD LUX 07/29 SEK 10.20 –0.1 1.1 1.2 Eq. US Rel Val A US EQ LUX 07/28 USD 23.83 –16.7 –23.8 –6.0 Yuki Nishi-Nippon Cty GeneralJP EQ IRL 07/29 JPY 7737.00 –20.3 –33.1 –12.9 is shipped abroad Euro Fixed Income A EU BD IRL 07/28 EUR 1198.78 –4.0 –5.1 –2.8 Alpha Bond Fd SEK -B- NO BD LUX 07/29 SEK 9.16 –0.1 1.1 1.2 Eq. US Sm Cap Val A US EQ LUX 07/28 USD 21.31 –14.6 –22.5 –5.7 Yuki Nishi-Nippon Cty PurGthJpJP EQ IRL 07/29 JPY 6985.00 –21.7 –35.1 NS Euro Fixed Income B EU BD IRL 07/28 EUR 1268.90 –3.7 –4.6 –2.3 Alpha Bond Fd SEK -C- NO BD LUX 07/29 SEK 25.57 –0.2 1.0 1.1 Eq. US Value Opp A US EQ LUX 07/28 USD 21.85 –14.3 –21.1 –7.5 By Yayu Yuniar Euro Small Cap A EU EQ IRL 07/28 EUR 1341.29 –23.8 –35.3 –11.2 Alpha Bond Fd SEK -D- NO BD LUX 07/29 SEK 8.52 –0.2 1.0 1.1 Money Market EURO A EU MM LUX 07/28 EUR 26.64 2.4 4.2 3.8 n Yuki Shizuoka Japan Series Euro Small Cap B EU EQ IRL 07/28 EUR 1424.42 –23.6 –34.9 –10.7 Alpha Short Bd SEK -A- NO MM LUX 07/29 SEK 10.75 2.4 3.8 3.2 Money Market USD A US MM LUX 07/28 USD 15.58 1.8 3.9 4.4 Yuki Shizuoka General Japan JP EQ IRL 07/29 JPY 7844.00 –18.1 –37.8 –13.2 JAKARTA—Indonesia is the world’s largest producer of thermal Advertisement [ ALTERNATIVE INVESTMENT FUNDS www.WSJ.com ] Advertisement coal, which is used to generate one- third of the nation’s electricity. So 12-month and 2-year returns may be calculated over 11- and 23-month NAV — %RETURN — NAV — %RETURN — periods pending receipt and publication of the last month end price. FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR why are factories, businesses and or- NAV — %RETURN — INDICES dinary citizens around this sprawling FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR MultiAdv Arb Inst USD OT OT CYM 06/30 USD 98.01 –0.8 NS NS MultiAdv Arb S EUR OT OT CYM 06/30 EUR 127.47 0.1 –0.6 6.2 capital city facing chronic blackouts? NAV % RETURN MultiAdv Arb S GBP OT OT CYM 06/30 GBP 133.72 0.6 0.8 7.6 FUND NAME GF DATE CR NAV 1-WK 1-MO 1-Q 1-YR 2-YR The answer: Indonesian coal pro- MultiAdv Arb S USD OT OT CYM 06/30 USD 140.78 –0.5 –0.4 7.3 n ducers would rather export at a MultiAdv Arb USD OT OT GGY 06/30 USD 220.78 –1.1 –1.8 6.0 ARIX ABSOLUTE RETURN INVESTABLE INDEX Knowledge Understanding Feri Institutional Advisors, www.feri.de n HARMONY CAPITAL higher price than sell locally to PLN, n HSBC Uni-folio ARIX Composite Gross USD OT 06/30 USD 1602.00 NS 0.5 4.1 5.0 8.0 email: [email protected] Tel: + 44 207 290 6630 the state-owned electricity utility. Alpha AdvantEdge OT OT JEY 06/30 USD 131.04 –1.7 1.4 6.6 NAV — %RETURN — n Harmony Cap Ltd A USD OT OT BMU 06/30 USD 2208.21 –5.5 –9.7 3.1 788 ASSET MANAGEMENT LTD. Asian AdbantEdge EUR OT OT JEY 06/30 EUR 108.78 –8.3 –0.2 NS FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR That has left PLN with a coal deficit in Harmony Cap Ltd B EUR OT OT BMU 06/30 EUR 2131.84 –5.0 –9.8 2.2 [email protected] www.788am.com Asian AdvantEdge OT OT JEY 06/30 USD 194.89 –8.8 0.3 10.8 recent months, forcing it to turn the Harmony Cap Ltd D USD OT OT BMU 06/30 USD 1268.14 –5.7 –10.1 2.7 n OTHER FUNDS 788 China Fund Ltd OT OT CYM 06/30 USD 106.53 –64.7 –49.1 –8.0 Emerg AdvantEdge OT OT JEY 06/30 USD 188.43 –8.9 0.8 11.0 KNOWLEDGE IS VITAL. BUT KNOWLEDGE IS NOTHING WITHOUT UNDERSTANDING. Harmony Cap Ltd E EUR OT OT BMU 06/30 USD 1228.64 –5.1 –10.1 1.7 For information about these funds, please contact us on Tel: +44 (0) 207 842 9694/9633 power off in sections of Jakarta for 788 China Smaller Cap OT OT CYM 06/30 USD 75.93 NS NS NS Emerg AdvantEdge EUR OT OT JEY 06/30 EUR 109.06 –8.5 –0.3 NS Harmony Cap Ltd F GBP OT OT BMU 06/30 GBP 1070.00 –4.7 –8.8 NS Medinvest Plc Dublin OT OT IRL 05/30 USD 1482.79 0.0 4.0 8.9 hours each day. Everyone knows you need a hook to catch a fish. But when you understand enough 788 Gl Asset Alloc. Fd OT OT CYM 06/30 USD 86.51 –39.8 –23.6 –6.0 Europ AdvantEdge EUR OT OT JEY 06/30 EUR 141.30 –0.9 –2.5 5.5 788 Japan Fund Ltd OT OT CYM 06/30 USD 81.80 –33.9 –24.1 –10.8 n HERMITAGE CAPITAL MANAGEMENT LTD. Europ AdvantEdge USD OT OT JEY 06/30 USD 147.25 –1.5 –2.4 6.6 n PRIMASIA PACIFIC ASSET MANAGEMENT LTD. TEL: +852 2523 8221 In a desperate move to reduce about fish to persuade them to swallow it, you’re on the way to building a real business. Tel: +7501 258 3160 www.hermitagefund.com Japan AdvantEdge JPY OT OT JEY 06/30 JPY 8871.97 –5.5 –6.4 –8.5 www.primasia.com www.primasiahedgefund.com power usage, the government is forc- n ALEXANDRA INVESTMENT MANAGEMENT The Hermitage Fund GL EQ JEY 07/25 USD 1461.06 –17.9 –9.8 –0.3 Japan AdvantEdge USD OT OT JEY 06/30 USD 102.33 –4.7 –3.3 –3.8 Primasia Hedge Fund GL OT BMU 07/28 USD 17.87 3.1 NS NS ing factories in industrial zones Lvgd Alpha AdvantEdge OT OT JEY 06/30 USD 137.32 –5.4 –2.4 6.9 Alexandra Global Inv I OT OT VGB 06/30 USD 51.88 –21.3 –16.5 –2.5 That’s understanding. That’s The Wall Street Journal Europe. n HORSEMAN CAPITAL MANAGEMENT LTD. Trading AdvantEdge OT OT GGY 06/30 USD 149.10 10.8 21.6 18.7 around Jakarta to shut for two days n ATLANTIC INVESTMENT MANAGEMENT - NEW YORK, NEW YORKT: +44(0)20 7838 7580, F: +44(0) 20 7838 7590, www.horsemancapital.com Trading AdvantEdge EUR OT OT GGY 06/30 EUR 135.18 10.7 20.0 16.9 between Monday and Friday and Horseman EmMkt Opp EUR GL EQ GBR 06/30 EUR 192.16 3.7 29.5 NS Trading AdvantEdge GBP OT OT GGY 06/30 GBP 141.15 12.2 22.7 19.2 [email protected] Tel: +1 212 484 5050 move those working days to the week- Horseman EmMkt Opp USD GL EQ USA 06/30 USD 198.40 3.6 31.0 NS US AdvantEdge OT OT JEY 06/30 USD 130.50 3.2 6.1 8.6 AJR International A US EQ VGB 07/23 USD 1065.03 0.6 –1.9 NS Horseman EurSelLtd EUR EU EQ GBR 06/30 EUR 215.94 20.2 28.9 29.0 end. And it is trying through televi- AJR International B US EQ VGB 07/25 USD 178.56 0.5 0.8 NS Horseman EurSelLtd USD EU EQ GBR 06/30 USD 225.46 20.0 29.2 30.5 n RAINBOW ADVISORY SERVICES LTD. TEL: +242 322 5444 sion advertising campaigns to per- Cambrian Asia Ltd. AS EQ VGB 07/23 JPY 8570.00 –12.2 NS NS Horseman Glbl Ltd EUR GL EQ CYM 06/30 USD 425.26 13.3 22.1 29.8 [email protected] suade consumers to switch off lights Cambrian Europe Ltd. EU EQ VGB 07/23 EUR 89.88 –14.1 NS NS Horseman Glbl Ltd USD GL EQ CYM 06/30 USD 425.26 13.3 22.1 29.8 Rainbow Glb Hi Yld GL BD BHS 06/30 USD 4125.75 1.3 13.6 1.7 Cambrian Fund Ltd. A US EQ VGB 07/23 USD 697.16 –19.2 NS NS and minimize power consumption. n HSBC ALTERNATIVE INVESTMENTS LIMITED Star Fund Ltd Inv GL BD BHS 06/30 USD 2844.54 7.2 34.6 8.2 Cambrian Fund Ltd. B US EQ VGB 07/23 USD 170.09 –19.2 NS NS The troubles are one example of T +44 20 7860 3074 F + 44 20 7860 3174 www.hail.hsbc.com Rodinia Fund Ltd US EQ VGB 07/23 USD 138.00 –4.3 –5.9 NS n INTEGRATED ALTERNATIVE INVESTMENTS, TEL: +44 (0)20 75149200 how attempts by governments in HSBC Absolute Companies F € 113 HSBC Absolute Companies Email: [email protected] - Website: www.integratedai.com many parts of the developing world SUBSCRIBE FOR 6 MONTHS AT THE SPECIAL PRICE O Euro Absolute OT OT GGY 06/30 GBP 1.61 –1.3 –2.1 5.6 Altipro OT OT FRA 07/24 EUR 256.68 0.9 2.6 NS to control prices for consumers can Euro Absolute EUR OT OT GGY 06/30 EUR 2.25 –1.8 –3.4 4.0 Integrated Cash Dyn EUR OT OT CYM 06/30 EUR 101.62 0.8 1.6 3.6 4Please start my 6-month subscription to The Wall Contact, delivery and payment information Global Absolute OT OT GGY 06/30 GBP 1.15 2.4 6.3 9.3 Integrated Dir Trading EUR OT OT CYM 06/30 EUR 109.74 7.1 16.3 10.9 lead to problems. In Indonesia, the n Global Absolute USD OT OT GGY 06/30 USD 2.12 1.2 4.9 9.1 Integrated Emg Markets EUROT OT CYM 06/30 EUR 97.09 –7.6 –2.9 3.8 SUPERFUND ASSET MANAGEMENT GMBH government sets low rates for elec- Street Journal Europe now for only €113. That’s Mr/Mrs/Ms Full Name: Integrated European EUR OT OT CYM 06/30 EUR 157.67 6.1 2.3 6.0 For information about open funds, please contact us on Tel: +43 1 24700 n www.superfund.com *Closed for New Investments tricity that don’t reflect its real cost. Job Title**: n CAPITAL MANAGEMENT ADVISORS HSBC ALTERNATIVE STRATEGY FUND Integrated Event Driven EUROT OT CYM 06/30 EUR 107.19 0.0 2.0 8.5 66% off the cover price. Credit card customers will Special Opp EUR OT OT CYM 06/30 EUR 117.33 4.8 9.2 NS Integrated Lg/Sh Sel F EUR OT OT CYM 06/30 EUR 99.89 –0.1 1.3 8.4 Superfund Cayman* OT OT CYM 07/22 USD 66.58 39.8 11.4 26.0 That has contributed to years of un- Phone Number: +1 441 295 59 29 receive a €50 / £30 Amazon gift certificate. Delivery Address: Special Opp Inst EUR OT OT CYM 06/30 EUR 110.05 5.2 10.1 NS Integrated Lg/ShEqA EUR OT OT IRL 06/30 EUR 113.31 –3.7 –2.3 4.7 Superfund GCT USD* GL EQ LUX 07/22 USD 3251.00 34.0 8.2 19.4 derinvestment in power infrastruc- CMA Dynamic OT OT BHS 06/30 USD 1630.93 0.0 –1.0 5.7 Special Opp Inst USD OT OT CYM 06/30 USD 119.70 4.8 10.7 NS Integrated MultSt B EUR OT OT VGB 06/30 EUR 140.49 0.7 3.4 6.2 Superfund Gold A (SPC) GL OT CYM 07/22 USD 1178.41 34.1 44.9 34.4 City: Postcode: Superfund Gold B (SPC) GL OT CYM 07/22 USD 1318.15 40.8 43.6 40.9 ture. As the international market CMA MultHdge Arbtrge OT OT CYM 06/30 USD 1916.76 –0.7 –0.3 5.3 Special Opp USD OT OT CYM 06/30 USD 118.52 4.4 9.8 NS Integrated Relative Value EUROT OT CYM 06/30 EUR 99.29 –1.2 –0.7 4.5 Subscription details CMA MultHdge Balncd OT OT CYM 06/30 USD 1396.11 –0.3 0.3 4.9 Superfund Q-AG* OT OT AUT 07/22 EUR 7990.00 23.6 10.1 16.9 price for commodities like coal rises, Country: Tel: n HSBC Portfolio Selection Fund n • URL: www.services.wsje.com/media CMA MultHdge Growth OT OT CYM 06/30 USD 2055.05 4.1 3.7 7.3 KREDIETBANK LUXEMBOURG n WEAVERING CAPITAL Indonesian producers can often get a Email: GH Fund AP OT OT CYM 06/30 EUR 145.26 2.6 6.9 12.2 CMA MultiHdge Lvrgd OT OT CYM 06/30 USD 1417.77 –0.8 –5.7 7.0 www.kbl.lu Fax : +352 47 97 73 911 www.weaveringcapital.com [email protected] T:+44(0)2073554720 • E-mail: [email protected] GH Fund CHF Hdg OT OT JEY 06/30 CHF 124.53 1.5 3.6 7.6 better price by exporting than by sell- KBL SPOP Investing OT OT LUX 06/30 EUR 2191.46 –0.6 2.2 8.4 Weavering Macro F.I. Fd GL OT CYM 06/30 USD 169.43 2.8 10.2 11.6 Signature: Date: GH Fund EUR Hdg OT OT JEY 06/30 EUR 135.03 2.3 5.4 9.5 ing to their home market. • Phone: +32 2 741 14 14 KBL SPOP Investing OT OT LUX 06/30 USD 2115.13 –0.9 2.6 9.6 Credit card no.: GH Fund EUR Hdg (Non-V II)OT OT JEY 06/30 EUR 119.89 2.4 5.5 9.5 KBL SPOP Long/Short Eq OT OT LUX 06/30 USD 598.29 –9.7 1.5 NS n WINTON CAPITAL MANAGEMENT LTD The power issue is hurting Indone- GH Fund EUR Hdg (Non-V) OT OT JEY 06/30 EUR 135.03 2.3 5.4 9.5 Tel: +44 (0)20 7610 5350 Fax: +44 (0)20 7610 5301 • Fax: +32 2 741 14 59 KBL SPOP Long/Short Eq OT OT LUX 06/30 EUR 592.24 –9.0 1.6 NS sia’s attractiveness as an investment Expiry date: GH Fund GBP Hdg OT OT JEY 06/30 GBP 147.71 3.2 7.4 11.4 Winton Evolution EUR GL OT VGB 06/30 EUR 1378.74 10.2 19.1 15.7 • Address: Subscriber Relations, The Wall Street Journal GH Fund Inst EUR OT OT JEY 06/30 EUR 103.44 NS NS NS Winton Evolution GBP GL OT VGB 06/30 GBP 1352.95 10.9 21.0 17.2 site. More than 400 Japanese compa- Visa Amex Eurocard/Mastercard Europe, Blvd Brand Whitlock 87, 1200 Brussels, Belgium. GH Fund Inst JPY OT OT JEY 06/30 JPY 10230.11 0.8 2.3 NS Winton Evolution JPY GL OT VGB 06/30 JPY 123472.95 7.5 14.9 11.8 nies—making everything from food to Please invoice me n CARLO SCEVOLA & PARTNERS GH Fund Inst USD OT OT JEY 06/30 USD 120.29 2.4 6.7 11.7 Winton Evolution USD GL OT CYM 06/30 USD 1348.98 10.0 19.7 16.8 Winton Futures EUR GL OT VGB 06/30 EUR 200.50 18.2 29.3 22.5 textiles—jointly issued a formal com- Your tracking code is HSDEB000F. Always indicate your We may provide your information to third parties, including companies outside of the Tel +44 (0) 20 7419 5671 GH FUND S EUR OT OT CYM 06/30 EUR 140.92 3.1 6.8 10.8 GH FUND S GBP OT OT CYM 06/30 GBP 146.03 3.7 8.4 12.5 Winton Futures GBP GL OT VGB 06/30 GBP 214.70 19.1 31.6 24.3 plaint to the government this month delivery details, payment preferences and tracking code. EU, in order to fulfill your subscription request, process data and provide you with pro- www.rescgf.com Winton Futures JPY Lead SeriesGL 2 OT VGB 06/30 JPY 14653.53 16.4 25.8 19.8 motional information from WSJE, its affiliates and other carefully selected companies. GH Fund S USD OT OT CYM 06/30 USD 160.44 2.7 7.3 12.3 Resolute Capital Gth Fd OT OT VGB 06/30 USD 1197.69 6.6 16.1 9.4 n MERIDEN GROUP Winton Futures USD GL OT VGB 06/30 USD 716.03 18.1 30.3 23.9 about the frequent cuts to power sup- I do not wish to receive promotional materials from other carefully selected companies. GH Fund USD OT OT GGY 06/30 USD 298.33 2.1 6.0 10.9 Subscription price* I do not wish to receive promotional materials from WSJE or its affiliates. Hedge Investments OT OT JEY 06/30 USD 150.42 2.4 6.5 11.0 Tel: + 376 741 175 Fax: + 376 741 183 Email: [email protected] n ZULAUF EUROPE FUNDS ply and threatened to pull out unless * For other currencies, please call us free at 00 800 9753 2000 or +32 2 741 14 14. n D'AURIOL FUNDS WWW.DAURIOL.BIZ Eurozone Switzerland United Kingdom Leverage GH USD OT OT GGY 06/30 USD 155.03 1.6 5.5 15.1 Antanta Combined Fund EE EQ AND 07/18 USD 702.32 –15.5 –14.0 –7.8 Phone: +353 1436 7200 Fax: +353 1672 5361 www.zulaufeurope.ky the problems are resolved quickly. ** Optional. All other information is required. Failure to provide obligatory information 2 FUNDS OF FUNDS OF HEDGE FUNDS MultiAdv Arb CHF Hdg OT OT JEY 06/30 CHF 112.36 –1.5 –3.6 2.9 Antanta MidCap Fund EE EQ AND 07/18 USD 1583.75 –12.6 6.8 19.9 Zulauf Europe Fd EUR OT OT CYM 07/18 EUR 152.94 8.0 11.8 6.4 € 113 CHF 176,4 £ 54,6 will result in subscription delays. Hand delivery subject to confirmation by local I Indonesia’s economy is forecast distributor. Offer only open to new subscribers. D'Auriol Alt Non-Lev A EU OT CYM 05/31 EUR 127.65 –1.5 1.4 5.3 MultiAdv Arb EUR Hdg OT OT JEY 06/30 EUR 120.89 –0.6 –1.9 4.7 Meriden Opps Fund GL OT AND 07/23 EUR 104.16 –7.1 NS NS Zulauf Europe Fd LP OT OT CYM 03/31 USD 173.04 1.2 12.5 6.3 ©2008 Dow Jones & Company, Inc. All rights reserved. Please allow 2 weeks for delivery to commence. D'Auriol Opp F3 EUR EU MM CYM 05/30 EUR 1318.75 –3.8 NS NS MultiAdv Arb GBP Hdg OT OT JEY 06/30 GBP 131.45 0.0 –0.7 6.0 Meriden Protective Div GL EQ AND 07/21 EUR 75.06 –7.5 NS NS Zulauf Europe Fd USD OT OT CYM 07/18 USD 326.07 8.7 13.5 8.9 to expand 6% this year, largely be- cause of commodity exports. Yet the For information about listing your funds, please contact: Peter Jennings, tel: +44-20-7842-9674; email: [email protected] or Carsonong W tel: +852 2831-6481; email: [email protected] power shortages may hurt growth. 10 WEDNESDAY, JULY 30, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. WEDNESDAY, JULY 30, 2008 23 ECONOMY & POLITICS THE INTERNATIONAL INVESTOR U.K. outlook gets darker Proton needs a partner Mumbai leads broad fall, provals fell to 36,000 in June, a 72% technical and management exper- Toyota weighs on Nikkei DAILY SHARE PRICE Retailing, mortgages U.K. sales fall fall from the peak of November Malaysian car maker tise, more financial clout and better 2006. access to foreign markets. Dr. Ma- By V. Phani Kumar growth. HDFC Bank tumbled 8.7%, The balance of retailers reporting Proton Holdings slow rapidly in signs has yet to find profit And Tuhin Kar ICICI Bank rising sales volumes versus those Growth in total net consumer On the Kuala Lumpur Stock Exchange hathir opposed selling a Proton and skidded 8.4%. Prop- DLF reporting declines lending also slowed to £4 billion Tuesday’s close: 3.08 ringgit, down 2.5% stake to foreign investors. erty developer lost 5.5%. Among of spiraling economy ($8 billion) in June. That is the on go-it-alone path Proton’s managing director, Syed HONG KONG—Worries about auto makers, Maruti Suzuki fell 7% 20 weakest rate since February 1999 4.5 Zainal Abidin, is confident Proton can more write-downs at U.S. financial and Tata Motors declined 6.8%. By Joe Parkinson and down from £5.1 billion in May. By Elffie Chew sell 140,000 cars in Malaysia this fis- firms spilled over to Asian banks Capital-goods companies de- 10 “This is more very disturbing 4.0 cal year, up 23% from 114,000 in the and brokerage stocks, while Indian clined on concerns that orders may LONDON—The U.K. economy’s 0 mortgage data that heighten con- KUALA LUMPUR—Proton Hold- last one. Proton’s longer-term goal is shares were hit by an unexpectedly suffer as higher rates make it more outlook darkened further Tuesday cerns over the potential depth and ings, Malaysia’s state-backed car 3.5 to sell 300,000 cars by 2010 and large interest-rate increase by the difficult to borrow, which could as retail-sales growth and home- –10 length of the housing market correc- maker, took a gamble in 2007 by opt- 500,000 by 2012 via strategic tie-ups country’s central bank. postpone projects. Reliance Infra- structure mortgage activity slowed sharply. –20 tion,” Global Insight economist ing to stay on its track of working 3.0 with distributors in Southeast Asia, Tokyo stocks also were hurt by fell 8%. The Confederation of British In- Howard Archer said. without a foreign partner. Many in- India, China and the Middle East. Toyota Motor’s reduced sales fore- Ranbaxy Laboratories shed 3.8% dustry, a business group, reported –30 In its monthly survey, the CBI vestors and analysts remain doubtful But market observers are skepti- cast for 2008. after the drug company reported a that its measure of July retail-sales said a balance of -36 of retailers re- the go-it-alone strategy will pay off. 2.5 cal that Proton can meet these ambi- In Mumbai, In- sharp drop in quarterly profit on –40 JFMAMJJ ASIAN-PACIFIC volume tumbled to its lowest in 25 J A S O N D J F M A M J J ported higher sales in July com- In November, Proton halted long- tious targets, given the saturation dia’s 30-share Sen- steep foreign-exchange losses. Source: Thomson Reuters Datastream sitive Index, or years. Bank of England figures 2007 '08 pared with the stronger than ex- running talks on possible tie-ups in the domestic Malaysian market, STOCKS In Tokyo, the Nikkei Stock Aver- showed mortgage approvals in June pected -9 in June. That was the low- with both Volks- its outdated models and its compara- Sensex, slumped age fell 1.5% to 13159.45. Mizuho Fi- slumped to their lowest since the Source: Confederation of British Industry est balance since the survey began HEARD wagen and General tive lack of distribution channels 3.9% to 13791.54, after the Reserve nancial sank 2.2% and Nomura Hold- data series began in 1999. The cen- in July 1983 and significantly below Motors. The Malay- hicles and parts. By May 31 this year, overseas. Bank of India attacked inflation by ings skidded 2.9%, following a tum- tral bank also reported sharp drops port is the latest gloomy news about the expectations of economists, Malaysian opposition leader Anwar Ibrahim says a doctor’s report will clear him IN ASIA sian company con- Proton’s market share stood at 34%. Mr. Syed Zainal says Proton has raising its key lending rate, known ble in U.S. financial stocks on Mon- in consumer and mortgage lending. the U.K. housing market, which is de- who had forecast sales volumes of sodomy charges, and he urged police to drop their investigation of him. tended it could The company is hoping to make several “high-demand” products in as the repo, by 0.5 percentage point day.After the market closed, Nomura Economists said the rapid down- teriorating under pressure from the would slow to a balance of -15. Ster- once again make operating profits an operating profit—its first in two the pipeline, including its first van to a seven-year high of 9%. Many an- reported a quarterly net loss of 76.59 turn has raised the risk of the U.K. slip- credit crunch. ling tumbled on the news to an intra- on its own by selling more cars over- years—in the current fiscal year, that carries passengers and cargo alysts had expected a 0.25-point in- billion yen ($712.7 million), citing ad- ping into a technical recession. Fig- The housing slump has been at day low of 1.990 against the dollar. seas, especially lower-cost ones. which ends March 31. For last year, plus a replacement for its Perdana crease. Banks also were required to ditional provisions on its exposure to ures released Friday showed the econ- the center of Britain’s economic “The CBI’s July survey of retail- Now, times are tough for auto Proton reported a net profit thanks to model; both new models are due to keep more cash at the central bank. bond insurers and write-downs on omy grew just 0.2% in the second slowdown as households have ers fell off the proverbial cliff,” J.P. Malaysia’s Anwar says makers globally, and Proton is fac- items like a write-back of 194 million launch in 2009. A hatchback based The Sensex is now down 32% on private-equity investments. Ana- quarter, a rate not seen since 2001. pulled back on spending, squeezed Morgan economist Malcolm Barr ing stiff headwinds. On July 7, the ringgit for research-and-develop- on Proton’s Savvy compact will be the year after having rallied 47% in lysts had expected a small gain. “Today’s data continued to paint by shrinking asset values and rising said. “Many will take the CBI data as stock hit a 10-year low of 2.92 ring- ment expenses. Without that write- launched in 2010. 2007. Toyota Motor lost 2.7% after the a picture of an economy rapidly los- food and energy costs. A report pub- indicative of the trend in overall git (89 U.S. cents) and many ana- back and other one-time items, Pro- The Proton executive also thinks The Reserve Bank also lowered company cut its 2008 sales fore- ing momentum,” Lehman Brothers lished Tuesday for the British gov- spending, while the official data are report exonerates him lysts doubt it can reach much above ton would have posted a loss of 58 mil- rising inflation and high crude its economic growth forecast to cast. It said a brutal industry slump economist Matthew Smith said. ernment by former senior mortgage showing massive volatility, and the that for some time. On Tuesday, Pro- lion ringgit, analysts say. prices won’t hurt car sales because around 8% for the fiscal year ending in the key U.S. market has offset “Our forecast is for the U.K. to enter banker James Crosby suggested the message on that basis could hardly By James Hookway tion plans to call a vote of no confi- ton declined 2.5% to 3.08 ringgit. A Thomson Reuters survey of 16 most of the models have 1.6-liter or March 31 from its previous estimate gains elsewhere in the world. recession and for the Bank of Eng- government might consider guaran- be weaker.” And Raphael Pura dence in Mr. Abdullah’s government. “The bottom line is that Proton analysts gives an average projection smaller engines. of 8% to 8.5%. In Sydney, the S&P/ASX 200 shed land to start cutting rates in Novem- tees for high quality mortgage- —Natasha Brereton Mr. Anwar asserted that the pur- will need to show a stronger opera- for Proton net profit in the current However, Mr. Syed Zainal tacitly “The repo rate hike was the last 1.5% to 4847.40. National Australia ber as oil prices ease back.” backed securities to revive lending. and Laurence Norman Malaysian opposition leader An- ported doctor’s report he distrib- tional turnaround before it can at- year of 93.1 million ringgit, down concedes Proton still needs a long- nail in the coffin for the markets to- Bank lost 4% and Commonwealth The BOE mortgage-market re- The data showed mortgage ap- contributed to this report. war Ibrahim produced a purported uted to the media Tuesday “makes a tract the interest of fund man- from 202.9 million ringgit a year ago. term partner to survive, saying re- day, so to speak, already reeling un- Bank of Australia gave up 4.3%. doctor’s report Tuesday that he said mockery of this so-called police in- agers,” says Chong Sui San, chief in- Internationally, auto makers cently that it should be able to re- der the pressure of weak global mar- South Korea’s Kospi lost 1.9% to showed that he hadn’t sodomized a vestigation.”This is the second time vestment officer of OSK Asset Man- face an array of problems hurting start tie-up talks next fiscal year kets,” said Raju Bhavsar, a dealer 1567.20. Kookmin Bank dropped former aide, and he urged police to Mr. Anwar has faced sodomy allega- agement in Kuala Lumpur. sales, from soaring oil prices to with auto makers that want a pres- with Pioneer Intermediaries. 2.6% despite reporting Monday that drop their investigation into the tions. After a falling out with then- Ms. Chong, who doesn’t own Pro- weakening economies squeezing ence in Southeast Asia. Interest-rate-sensitive sectors second-quarter profit more than India raises rates to curb inflation aide’s allegation against him. Prime Minister Mahathir Mohamad ton shares, thinks the car maker— disposable incomes. Rising costs Ken Miranda, who runs Evio Capi- such as banks, real estate and auto- doubled from a year ago. Mr. Anwar claimed the report— in 1998, he was purged from his post saddled with declining market share for steel and other raw materials tal, a hedge fund in Singapore, says mobiles led the fall on worries the —Rose Yu By Jackie Range The bank also moved to drain li- which hasn’t been authenticated— as deputy premier. He was subse- and an outdated product lineup— are also a headache. Proton “may be doing well now, but rate increases could slow their profit contributed to this article. quidity from the financial system by India’s inflation supportedhiscontentionthatheisbe- quently tried, convicted and jailed needs to be more competitive in the “Global car makers are issuing it is too small to survive in the glo- NEW DELHI—India’s central increasing the amount of cash ing framed by his political opponents on sodomy charges, only to have the global arena and shouldn’t continue profit warnings and it would be bal arena in the long term.” He Year-to-year percentage change in bank raised a key interest rate and banks are required to hold at the cen- to derail his bidtotopple Prime Minis- conviction overturned in 2004, af- to rely on the government’s help to tough for Proton to sustain earn- doesn’t own Proton shares. wholesale price index, weekly data lifted the amount of money banks tral bank. It raised the cash reserve terAbdullahAhmadBadawi’slong-rul- ter Dr. Mahathir had left office. be in the black. “Proton still needs a ings, going forward,” says Clare “Car demand in Malaysia may be China opens more to Hong Kong must keep in reserve Tuesday, mea- ratio by 0.25 percentage point to 9% 15 % ingNationalFrontgovernmentandbe- Thedramasurroundingtheallega- strong partner to survive in the long Chin, an auto analyst with CLSA in fine now, but rising inflation could re- sures aimed at fighting inflation of bank deposits, with effect from come Malaysia’s next prime minister. tions against Mr. Anwar has again run,” she argues. Kuala Lumpur. She has a sell recom- sult in falling disposable income and By Chester Yung exploit oil and natural gas in joint that are likely to slow economic Aug. 30. Malaysian officials and police turnedthespotlightonMalaysia’sau- The stock has outperformed the mendation on Proton, with a rising interest rates,” notes Ms. Chin ventures with mainland partners, growth even further. Economists predict that India’s 10 say the investigation isn’t politi- thoritarian political culture and a le- broader Malaysian market this year, 12-month target price of 2.10 ringgit of CLSA. “That’s a double whammy HONG KONG—China will further and Beijing will also allow Hong Economists said the moves were gross domestic product will grow cally driven. On Tuesday, Home Af- gal system still widely viewed as vul- falling 16% compared with a 20% a share, 32% below Tuesday’s close. for car makers like Proton.” open its services sector to Hong Kong service providers to offer pros- more drastic than expected. between 7% and 7.5% in the year end- fairs Minister Syed Hamid Albar de- nerable to political pressure. Public drop in the Kuala Lumpur Composite Protonalsohastodealwithanun- In 2007,car sales in Malaysia con- Kong companies, allowing them to pecting and surveying work for “We can expect to see some fur- ing March 31, 2009, compared with 5 clined to say whether the medical re- confidence in institutions of law en- Index. Still, many fund managers say certain political situation at home. tracted 0.7%. Ms. Chin predicts they assist in mining for minerals, Hong iron, copper and manganese min- ther damage to the real economy 9% in the previous year and 9.6% the port cited by Mr. Anwar was authen- forcement—the police, public prose- the car maker has yet to make a con- Under Dr. Mahathir’s 22 years in will rise 11% this year but then grow Kong Chief Executive Donald Tsang ing. coming through,” wrote year before that. Inflation tic, but described it as a “piece of evi- cutors and the judiciary, which have vincing case for long-term recovery. power, Proton served as a symbol of said. only 2% in 2009. The new measures take effect HSBC economist Robert and high interest rates are dence” in the sodomy investigation. been dogged by embarrassing scan- Proton is 43%-owned by govern- industrializing Malaysia and bene- Amid the Proton bears, there are New supplements to the Closer 0 Jan. 1, Mr. Tsang said. Prior-Wandesforde. major factors in slowing 2006 ’07 ’08 Thedevelopmentscomeamidanin- dals—islow.Andarecentopinionsur- ment investment fund Khazanah Na- fited from government support. a few bulls. Ong Boon Leong, an auto Economic Partnership Agreement Under CEPA, China has applied The bigger-than-ex- growth, economists say. Source: Ministry of Commerce and Industry creasingly acrimonious political veybyanindependentMalaysianpoll- sional. The auto maker—the brain- But with Dr. Mahathir retired analyst with Hwang-DBS Vickers Re- will also open the way for Hong pected rate increase, cou- The Reserve Bank low- power struggle in Malaysia, where an ingorganizationshowedthatamajor- child of former Prime Minister Ma- since 2003 and his allies out of com- search in Kuala Lumpur, believes the Kong companies to participate in sci- zero-tariff treatment to products pled with a reduction in the ered its own economic opposition alliance led by Mr. Anwar ityof those asked believe Mr.Anwar’s hathir Mohamad—once had almost pany management, Proton is no stock is undervalued. But Mr. Ong, entific and technical services in originating from Hong Kong and bank’s forecast for economic growth forecast to about reach around 15% in October. scored major gains in a parliamentary allegations that the latest sodomy 70% of the Malaysian market, longer insulated from critics, some too, acknowledges that Proton’s fu- China, Mr. Tsang said. Under CEPA’s granted Hong Kong-based compa- growth, prompted a selloff 8% for the year ending The central bank’s moves are “a electionin March and is now threaten- charge is politically motivated, de- helped by protectionist policies of whom want it to sell a significant ture in the global arena is bleak if it new provisions on mining services, nies greater access to its domestic in the stock market. The March 31, from its previous signal to the banks that credit ingtodislodgeagovernmentcoalition- spite government denials. such as high tariffs on imported ve- stake to a global auto maker to get doesn’t have a strong partner. China will let Hong Kong companies markets. Bombay Stock Exchange’s estimate of 8% to 8.5%. It growth must be moderated,” the fi- thathasruledthepredominatelyMus- “The credibility of the Malaysian 30-stock Sensitive Index, or also lifted its inflation fore- nance ministry said in a statement. lim country of 27 million since 1957. justice system as a whole is at stake,” Sensex, fell 557.57 points, or cast to around 7% by the Indian banks are expected to pass Theallegationofsodomy—or anal Ambiga Sreenevasan, president ofthe Advertisement [ INTERNATIONAL INVESTMENT FUNDS www.WSJ.com ] Advertisement 3.9%, to end at 13791.54. Yaga Venugopal end of the fiscal year, from the interest-rate rises along to cus- sex, which is a crime in Malaysia— MalaysianBarCouncil,said.“Thepub- Continued from previous page NAV — %RETURN — NAV — %RETURN — NAV — %RETURN — The Reserve Bank of In- Reddy 5.5% earlier. tomers through higher lending rates. waslodged bytheformeraideagainst lic must be left in no doubt that the FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR dia raised the repurchase Recently, wholesale Economists expect further mone- Mr. Anwar in late June, shortly after criminaljusticesysteminthis country NAV — %RETURN — FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR (Lux) Russian EUR EE EQ LUX 07/28 EUR 87.96 –22.7 –19.3 NS Sel Emerg Mkt Equity GL EQ GGY 07/28 USD 228.78 –15.4 –5.8 14.9 rate—the rate at which banks bor- price inflation, which measures the tary tightening by the central bank the politician had disclosed opposi- will not be misused or abused.” (Lux) Russian USD EE EQ LUX 07/28 USD 106.09 –17.2 –7.0 NS Sel Euro Equity EUR US EQ GGY 07/28 EUR 111.52 –23.7 –27.2 –7.7 Andfs. Plus Dollars US BA AND 07/28 USD 10.04 –6.2 –5.3 0.6 Balkan Fund EE EQ SWE 07/29 SEK 21.85 –34.4 –34.9 6.8 Sel European Equity EU EQ GGY 07/28 USD 233.08 –17.8 –16.1 2.5 rise in wholesale prices and is the later this year, with inflation likely Andfs. RF Dolars US BD AND 07/28 USD 11.33 0.0 1.1 2.3 row funds from it—by 0.50 percent- Baltic Fund EE EQ SWE 07/29 SEK 60.73 –17.5 –24.5 3.6 Sel Glob Equity GL EQ GGY 07/28 USD 224.39 –17.8 –19.1 –1.6 Andfs. RF Euros EU BD AND 07/28 EUR 10.46 –5.2 –6.9 –3.0 most closely watched inflation gauge staying high in 2008. Eastern European Fund EU EQ SWE 07/29 SEK 41.63 –24.0 –20.7 7.0 Sel Glob Fxd Inc GL BD GGY 07/28 USD 146.65 –0.1 4.0 3.1 age point to 9%, the highest level in Andorfons EU BD AND 07/28 EUR 14.11 –7.8 –10.9 –4.8 Russian Fund EE EQ SWE 07/29 SEK 1351.78 –22.6 –17.1 8.8 Sel Pacific Equity AS EQ GGY 07/28 USD 151.64 –14.0 –5.0 14.6 Andorfons Alternative PremiumOT OT AND 05/31 EUR 114.88 –1.0 –0.2 3.1 more than seven years. It was the in India, rose at an annual rate of just —Subhadip Sircar Turkish Fund EE EQ SWE 07/29 SEK 7.01 –38.9 –33.6 0.4 Sel US Equity US EQ GGY 07/28 USD 143.10 –16.2 –15.1 –1.7 n MP ASSET MANAGEMENT INC. Andorfons Mix 30 EU BA AND 07/28 EUR 10.40 –10.3 –11.6 –3.3 Sel US Sm Cap Eq US EQ GGY 07/28 USD 200.74 –13.2 –19.2 –3.2 third time in two months it has under 12%, a 13-year high. HSBC pre- and Neelabh Chaturvedi Andorfons Mix 60 EU BA AND 07/28 EUR 11.09 –15.9 –15.5 –3.8 Tel: + 386 1 587 47 77 MP-BALKAN.SI OT OT SVN 07/28 EUR 49.68 –32.0 –43.5 5.4 raised the repo rate. dicts wholesale price inflation could contributed to this article. n KREDIETBANK LUXEMBOURG Indian manhunt for bombers n CHARTERED ASSET MANAGEMENT PTE LTD - TEL NO: 65-6835-8866 MP-TURKEY.SI OT OT SVN 07/28 EUR 33.84 –33.7 –33.9 –3.1 Fax No: 65-6835 8865, Website: www.cam.com.sg, Email: [email protected] www.kbl.lu Fax : +352 47 97 73 911 DSF 25/75 EU BA LUX 07/28 EUR 325.82 –9.7 –9.2 –3.4 n PAREX ASSET MANAGEMENT IPAS CAM-GTF Limited AS EQ MUS 07/18 USD 225081.52 –13.7 –19.9 5.9 DSF 50/50 EU BA LUX 07/28 EUR 256.30 –13.7 –13.8 –5.0 Basteja Blvd. 14, Riga, LV-1050, Latvia n DSF 75/25 EU BA LUX 07/28 EUR 206.67 –17.7 –18.4 –7.2 www.parexgroup.com Tel: +371 67010810 DJE INVESTMENT S.A. n HERITAGE FUND MANAGEMENT focuses on Mumbai suburb KBC Eq (L) Europe EU EQ LUX 07/28 EUR 583.38 –23.2 –26.0 –8.9 Parex Caspian Sea Eq GL EQ LVA 07/28 EUR 7.65 –14.8 –23.7 NS internet: www.dje.lu email: [email protected] phone:+00 352 269 2522 0 fax:+00 352 [email protected] 25252 www.heritagefunds.ch DJE Real Estate P EU BA LUX 07/28 EUR 10.46 0.9 0.8 3.3 KBC Eq (L) Japan JP EQ LUX 07/28 JPY 25215.00 –14.7 –26.0 –10.6 Parex Eastern Europ Bd EU BD LVA 07/28 USD 14.19 3.8 5.3 6.7 HF-China Abs Ret OT OT CHE 07/24 CHF 96.45 –36.1 –34.3 NS DJE-Absolut P GL EQ LUX 07/28 EUR 217.47 –13.8 –11.8 3.8 KBC Eq (L) NthAmer EUR US EQ LUX 07/28 EUR 660.12 –14.3 –13.0 –1.6 Parex Russian Eq EE EQ LVA 07/28 USD 26.05 –18.0 0.9 18.6 ASSOCIATED PRESS Ahmedabad. HF-World Bds Abs Ret OT OT CHE 07/24 USD 82.96 –9.1 1.4 1.8 Japan’s economy weakened last month DJE-Alpha Glbl P EU BA LUX 07/28 EUR 183.13 –10.4 –7.3 4.6 KBC Eq (L) NthAmer USD US EQ LUX 07/28 USD 934.55 –14.3 –11.9 0.4 Parex Ukrainian Eq EU EQ LVA 07/28 EUR 7.35 –28.4 NS NS MUMBAI—Police launched a mas- A police representative said two DJE-Div& Substanz P GL EQ LUX 07/28 EUR 212.36 –10.9 –11.3 4.8 KBL Key America EUR US EQ LUX 07/25 EUR 493.03 –15.7 –14.9 NS By Akane Vallery Uchida sures and slow salary growth, add- The nation’s jobless rate rose to sive manhunt here Tuesday, believ- of the stolen vehicles had been used DJE-Gold&Resourc P OT EQ LUX 07/28 EUR 170.49 –9.0 –1.5 0.8 KBL Key America USD US EQ LUX 07/25 USD 507.62 –15.9 –14.1 NS DJE-Renten Glbl P EU BD LUX 07/28 EUR 120.40 –1.4 –1.3 1.1 KBL Key East Europe EU EQ LUX 07/24 EUR 2753.18 –18.9 –17.7 7.1 ing to concerns over the outlook for a seasonally adjusted 4.1% in June, ing that the serial blasts that rocked as car bombs in the attack, while LuxPro-Dragon I AS EQ LUX 07/28 EUR 128.09 –29.2 –17.0 NS KBL Key Eur Sm Cie EU EQ LUX 07/25 EUR 1049.11 –23.5 –34.3 –5.8 the nation’s economy. the highest since September 2006, the western Indian city of Ahmeda- two others had been discovered LuxPro-Dragon P AS EQ LUX 07/28 EUR 125.56 –30.6 –18.5 NS KBL Key Europe EU EQ LUX 07/25 EUR 691.08 –21.8 –27.7 –5.8 TOKYO—Japan’s unemployment LuxTopic-Aktien Europa EU EQ LUX 07/28 EUR 16.28 –15.6 –10.1 2.7 KBL Key Far East AS EQ LUX 07/25 USD 1440.94 –24.6 –24.2 8.6 “All the data today point to a from 4% in May, the Ministry of In- bad over the weekend, killing 42 peo- filled with explosives in Surat. Po- LuxTopic-Pacific AS EQ LUX 07/28 EUR 17.27 –19.6 –19.4 6.3 KBL Key Major Em Mkts GL EQ LUX 07/24 USD 753.21 –18.9 –8.6 25.3 rate rose to its highest level in al- n HERMES FINANCIAL MANAGEMENT (EGYPT) LIMITED, [email protected] Key NaturalRes EUR OT EQ LUX 07/25 EUR 528.58 –15.0 –13.3 NS n PICTET & CIE, ROUTE DESACACIAS 60, CH-1211 GENEVA 73 weakening of Japan’s economy. ternal Affairs and Communications ple, were hatched in a Mumbai sub- lice issued a sketch of a young man n most two years in June, while pri- EAST CAPITAL Tel: 9714 363 4041 *Middle East & Developing Africa Fund KBL Key NaturalRes USD OT EQ LUX 07/25 USD 630.12 –8.8 –0.9 NS Tel: + 41 (58) 323 3000 Web: www.pictetfunds.com vate spending slowed, reflecting With domestic company profits said Tuesday. urb. Four cars used in the weekend believed to be linked to one of the EFG-Hermes Egypt GL EQ BMU 06/30 USD 61.85 –3.8 29.5 46.9 PF (LUX)-Asian Eq-Ica AS EQ LUX 07/29 USD 180.86 –23.4 –15.6 12.8 EFG-Hermes MEDA* GL EQ BMU 06/30 USD 39.42 8.9 38.8 35.5 n LLOYD GEORGE MANAGEMENT (HK) LTD gradually shrinking and employ- The increase in unemployment bombings were stolen from the sub- cars in Surat, he said. Suite 3808, One Exchange Square, HK: Tel. 852 2845 4433 Fax. 852 2845 3911 PF (LUX)-Asian Eq-Pca AS EQ LUX 07/29 USD 174.22 –23.9 –16.4 11.9 the impact of global economic tur- EFG-Hermes Telecom OT EQ BMU 06/30 USD 34.42 –10.1 1.3 24.3 PF (LUX)-Biotech-Pca OT EQ LUX 07/28 USD 370.43 11.3 21.5 22.7 LG Antenna GL EQ BMU 07/25 USD 59.92 –20.0 –12.1 11.8 ment conditions clearly deteriorat- was larger than economists’ aver- urb of Navi Mumbai, police said. On Tuesday, Ahmedabad police PF (LUX)-CHF Liq-Pca CH MM LUX 07/28 CHF 123.51 1.2 2.1 1.9 moil on Asia’s largest economy. n WEBSITE: www.eastcapital.com n HSBC ALTERNATIVE INVESTMENTS LIMITED LG Asian Plus AS EQ CYM 07/18 USD 60.41 –29.2 –18.2 9.5 PF (LUX)-CHF Liq-Pdi CH MM LUX 07/28 CHF 95.34 1.2 2.1 1.9 On Tuesday, police said they de- Ph: +46 (0) 8 505 88 505, Fax: +46 (0)8 505 88 508 T +44 20 7860 3074 F + 44 20 7860 3174 www.hail.hsbc.com LG Asian SmallerCo's AS EQ BMU 07/28 USD 101.02 –36.5 –37.4 –3.6 Other data showed domestic de- ing, growth in consumption is very age forecast of 4%. said that after sifting through the PF (LUX)-Cnt Eu Eq-I EU EQ LUX 07/28 EUR 169.35 –23.9 –26.3 –4.6 fused 18 unexploded bombs found (Lux) E Eur ConvgnceEUR EE EQ LUX 07/28 EUR 77.46 –29.4 –34.0 NS HSBC Portfolio Selection Fund LG India EA EQ MUS 07/24 USD 57.48 –38.5 –16.3 17.5 mand remained weak as households difficult to expect,” said Etsuko Ya- —Takeshi Takeuchi, Tomoyuki blast scenes it appeared that 22 sep- (Lux) E Eur ConvgnceUSD EE EQ LUX 07/28 USD 93.51 –24.3 –23.9 NS Sel Emerg Mkt Debt GL BD GGY 07/28 USD 307.42 –1.4 4.1 5.7 Siberian Investment Co EE EQ IRL 07/21 USD 67.01 –23.9 –20.5 10.8 Please turn to next page were reluctant to increase their mashita, chief economist at Sumit- Tachikawa and Takashi Mochizuki near the diamond markets in Surat, arate bombs exploded on Saturday, spending due to rising price pres- omo Mitsui Banking Corp. contributed to this article. a city 280 kilometers south of killing 42 people and wounding 183. For information about listing your funds, please contact: Peter Jennings, tel: +44-20-7842-9674; email: [email protected] or Carsonong W tel: +852 2831-6481; email: [email protected]