32 MONDAY, OCTOBER 13, 2008 THE WALL STREET JOURNAL. THE FINANCIAL CRISIS

Fed to select trustees to oversee AIG stake VOL. XXVI NO. 179 MONDAY, OCTOBER 13, 2008 lending the insurer as much as $85 who effectively became sharehold- rectors, but the loan agreement al- the hook for about $1 billion a Œ2.90 Move suggests a way billion last month. The Fed last ers by making the loan, have a better lows the trustees to direct its month in interest. Œ2.90 week extended almost $38 billion in chance of being rewarded. The bail- makeup. The agreement requires On Friday, a person involved in - Spain to handle oversight additional credit to address AIG’s out also positions the government the insurer “to use reasonable ef- the situation said many firms are in- - France latest cash crunch. The new loan un- to compete with private firms in the forts” to make its board “satisfac- terested in AIG’s assets but there is

Œ3.20 Euro-zone economies to prop up banks of rescued companies derscores the government’s expand- global insurance business. tory to the trust” within 10 days of essentially no financing and poten-

ing role in keeping AIG from bank- The trust arrangement could be the trust’s creation, AIG said in a tial buyers are hoarding capital. A Sk 100/Œ3.32 the 15 countries that use the euro The accord among the euro- By Sudeep Reddy ruptcy, which Treasury officials say one model for how the government statement last month. few parties interested in big assets - Finland Options include said they would partially national- zone countries was an attempt to

would be disastrous for financial manages its ownership stakes in The Fed thus far has approached were holding preliminary conversa- - Slovakia ize their banks when necessary. overcome the bloc’s disarray in the Dkr 22 The Federal Reserve, in its unprec- markets world-wide. banks and other companies in the its role primarily from the perspec- tions but those discussions are now Œ3 nationalization, Other choices on the menu of mea- past week. Diverging national at- edented role propping up one of the The bailout puts the U.S. in the months ahead. Trustees can help to tive of a lender to ensure its credit on hold, another person familiar sures to cope with the growing fi- tempts to prevent banks from col- - Denmark world’s largest insurers, is on the unusual position of being both AIG’s insulate a company under govern- agreement is satisfied. But Fed offi- with the situation said. - Portugal guaranteed loans nancial crisis included state-guar- lapsing have failed to convince fi- verge of appointing trustees to over- owner and its lender. The two roles ment control from political influ- cials expect to remain involved in A spokesman for AIG said, “We anteed loans and the loosening of nancial markets that Europe’s lead- Kc 110 see the U.S. government’s stake in generally would favor the company ence and make decisions in the com- discussions about asset sales be- recognize it’s a very difficult mar- Zl 10.50 The euro zone’s biggest econo- mark-to-market rules, which force ers are capable of taming a crisis American International Group Inc. prospering, but could involve con- pany’s economic interest. cause they are critical to the AIG ket, but we have terrific assets, and mies prepared to unveil plans to banks to book their assets at the that is spilling across national

The central bank plans to select flicts. The trust structure isn’t a first loans being repaid. our plan is flexible.” - Poland spend tens of billions of euros in price they would get if they sold boundaries. As the credit crunch three individuals with business ex- As lender, the Fed is responsible for the government. However, the AIG has two years to repay the After the loan deal was struck state funds to prop up their banking them now. Leaders also repeated a spilled over into bourses, the pan- Nkr 27 perience to manage the public’s for ensuring that AIG pays interest unique federal involvement in AIG loan, a period intended to let the four weeks ago, the Federal Reserve - Czech Republic systems as leaders agreed on a pledge to save any distressed bank. European Dow Jones Stoxx 600 in- nearly 80% stake in AIG. The move on its loan—which has a hefty peg of requires independent trustees to company proceed deliberately and Bank of New York, which is oversee- French President Nicolas dex lost more than a fifth of its - Norway sketches one possible blueprint for the London interbank offered rate protect the interests of the insurer’s not sell in haste. Still, time isn’t on ing the loan, dispatched personnel HRK 20 By David Gauthier-Villars in Sarkozy, hosting the meeting, said value last week.

managing the government’s owner- plus 8.5%—and repays the central shareholders, who are now prima- its side. In recent weeks, credit mar- across AIG’s global empire to evalu- Œ2.90 Paris and Marcus Walker in Germany, France and Italy would de- Suggestions by France and the ship stakes in financial companies bank. A lender’s interests would be rily the taxpayers. kets have seized up and the stocks ate the company’s risk-manage- - Croatia Berlin tail their national plans at about Netherlands for a pan-European during the months ahead. served by AIG operating conserva- The AIG trustees would oversee of several insurers—potential asset ment procedures. AIG’s financial- same time on Monday. fund to rescue banks have been ve- Œ2.90

The three independent trustees, tively with a primary focus on loan the government’s ownership stake buyers—have been hammered. The products unit triggered the firm’s - Netherlands menu of measures to cope with the “We must restore the capacity toed by Germany, which fears its to be named within the next 10 days, payments. and voting rights in the insurer. future of AIG’s subsidiaries remains collapse. growing financial crisis. of our banks to lend money,” he told taxpayers would have to pay for Dh 24 would exercise control of AIG, tak- As the company’s controlling Eventually, the trust would sell the in limbo, leaving them vulnerable to As of Wednesday, AIG had - Belgium At a Paris summit, the leaders of a news conference. costly bailout schemes in other Œ3 ing over that role from the Fed and shareholder, the government— government shares, with the profits customer and employee defections tapped $70.3 billion from its $122.8 £1.40 countries. The U.K., which doesn’t

Treasury officials who executed the which holds a 79.9% ownership going into federal coffers. The trust- that could reduce their value. The billion in credit lines from the Fed. - Morocco use the euro but is a member of the bailout. stake—would want to maximize ees are expected to hire their own less AIG can get for its units, the —Liam Pleven and - Austria 27-nation European Union, is also Œ2.90 The government received the AIG’s value in both the near and long advisers. more it may have to sell to repay the Matthew Karnitschnig opposed to a common European AIG equity stake in exchange for term. That would ensure taxpayers, AIG will maintain a board of di- loan. Meanwhile, the insurer is on contributed to this article.

Lk 370.00 bailout fund. That means a Euro- – United Kingdom

$2 pean equivalent of the U.S.’s $700 - Luxembourg What’s News— billion bailout plan is off the agenda

7 Business&Finance World-Wide 7 for now. Press Associated L£ 4000 Participants in Sunday’s summit ECB President Jean-Claude Trichet, left, Nicolas Sarkozy, Gordon Brown and The U.K. government was final- Germany, France and Italy pre- Please turn to page 31 European Commission President José Manuel Barroso, at the crisis summit Sunday. - Lebanon

RACING COMPROMISED | 15,525 HP TO CONTROL | ON A MISSION - U.S. Military (Eur) izing plans Sunday night to take pared to unveil Monday govern- control of RBS by purchasing a ment funds totaling tens of bil- Œ2.90 big stake in the banking giant lions of euros to prop up their YTL 4.25 Risk management at work. - Italy while injecting at least £15 bil- respective banking systems, as Line in the sand

Œ2.90 lion into it. The government al- euro-zone leaders agreed on mea- The U.K. Treasury is finalizing plans for a rescue package that will mean Veteran hand - Turkey ready has nationalized two other sures to cope with the global fi- the government will acquire stakes in U.K. banks including Royal Bank of Scotland. lenders and is poised to become nancial crisis. They said that, CEO Fred Goodwin, right, will depart and is expected to be replaced by British S£ 150 one of the world’s biggest bank- when necessary, they would is set to guide

- Ireland (Rep.) Land CEO Stephen Hester. Below, RBS’s daily share price in pence. ers. Stephen Hester was tapped partly nationalize banks. Page 1 - Syria Page 1 n The IMF said Ft 530 as the likely CEO of RBS. member nations “The money is there, let’s move on.” —Fred Goodwin, n agreed to do what is necessary assuring investors that ABN financing is in place RBS after deal Investors and lenders are 700 SF 4.80 to prevent another key financial

- Hungary pulling back from financially institution from failing. Page 2 By Sara Schaefer Muñoz overstretched economies in 600 U.K. home Œ2.90 prices And Alistair MacDonald Eastern Europe. Page 4 n North Korea said it will re- 500

- Switzerland weaken RBS completes £12 sume tearing apart its nuclear - Greece n GM held merger talks with Barclays billion rights offering 400 LONDON—Stephen Hester has Œ3 kr 27 Chrysler and Ford. Though both complex, after the U.S. said it was moves to built a sterling reputation over removing Pyongyang from a list buy ABN discussions are on hold, they re- 300 more than two decades in senior Amro NV Germany For information or to subscribe, visit www.services.wsje.com or call +44 (0) 207 309 7799 — Albania Sweden Page 10 flect the intense pressure on the of terrorism sponsors. roles at some of the world’s biggest 200 RBS-led RBS consortium U.S. auto industry. Page 8 n The U.S. and Iraq are close to financial firms. Now he’s poised to consortium* wins $101 billion U.S. investment firm n 100 put that reputation to the test by Ford is exploring the sale of agreeing on a final draft of a se- begins ABN ABN purchase Lehman files for its controlling stake in Japan’s curity accord. Suicide car bomb- hostile bid bankruptcy protection taking over as chief executive of the 0 Mazda as part of an effort to ers struck in Mosul, killing at embattled Royal Bank of Scotland shore up its finances. Page 8 least six people, and a car bomb 2007 2008 Group PLC. killed seven in Baghdad. Page 10 *Includes Dutch-Belgian bank Fortis NV and Spain’s Banco Santander SA Mr. Hester has been tapped as n Russia sought to accelerate Sources: Thomson Reuters Datastream (share price); WSJ research. Photo: AFP the likely successor to RBS chief ex- its $200 billion bailout of finan- n Suspected U.S. missiles killed ecutive Fred Goodwin, who is ex- cial markets as investors grew five people in Pakistan, officials pected to step down as part of a increasingly doubtful of the said. Pakistani forces killed over deal in which RBS will receive a cap- Kremlin’s commitment to re- 50 insurgents, other officials said. ital injection of at least £15 billion versing the rout. Page 5 RBS CEO’s exit is likely n U.S. Gen. McKiernan, NATO’s ($25.6 billion) from the UK govern- n Retail investors could be top general in Afghanistan, said ment, people familiar with the mat- scared away from stocks for a he rejects that NATO is losing ter say. An announcement is ex- long time to come by the sever- to the Taliban insurgency but as part of U.K. purchase pected to come as early as Monday ity of the recent plunge. Page 19 he needs more military forces. morning, the people say. Formula One™ is about performance. But it takes second place to safety. LONDON—In a dramatic turn, least £15 billion into RBS. As part of The appointment would put Mr. n The flight to the safety of That’s why Bernd Mayländer and the Official Formula One™ Safety Car n Finland’s ex-President Martti the U.K. government was finalizing the measures, RBS CEO Fred Good- Hester, 47 years old, currently chief the dollar and yen is likely to are vital to every Formula One™ race. For every second of the race, Bernd Ahtisaari won the Nobel Peace plans Sunday night to take control win, who built the bank in his eight executive of the British Land Com- persist in the near term if state- is in position, ready for the moment that demands his presence back on Prize for efforts to resolve con- of Royal Bank of Scotland Group years at the helm, is expected to pany PLC, at the helm of a bank that ments on tackling the crisis fail the circuit to play his role restoring safety to the race. It sounds simple. flicts from Namibia to Aceh, In- PLC, by purchasing a big stake in the step down, people familiar with the has grown rapidly since 2000 into a to appease investors. Page 20 It rarely is. To find out more about risk management in Formula One™, donesia, Kosovo and Iraq. Page 10 banking giant. matter said. It is a comedown from a worldwide presence, but has re- visit n Saudi Arabia and the U.A.E. The government, which already year ago when RBS was leading the www.allianz.com/f1 n Zimbabwe opposition leader cently stumbled amid the credit both promised fresh financial has nationalized two other lenders, world’s biggest-ever bank acquisi- crunch and difficulties pulling off Tsvangirai threatened to pull out Allianz. Financial solutions from A- Z support to their domestic bank- is now poised to become one of the tion. the ambitious takeover of Dutch of a national unity government if ing industries. Page 22 world’s biggest bankers. It also is The U.K. bailout approach, be- bank ABN Amro Holding N.V. President Mugabe refuses to buying a controlling stake in mort- coming the model for the U.S. and cede control of key ministries. From day one, Mr. Hester will INSURANCE | ASSET MANAGEMENT | BANKING Markets elsewhere with its emphasis on in- face an array of daunting chal- NET PCT n Austrian far-right politician By Dana Cimilluca, jecting capital into banks to boost lenges. For one, he’ll have to quickly MARKET CLOSE CHG CHG Joerg Haider was speeding at Alistair MacDonald, their balance sheets as well as guar- gain authority and maintain morale DJIA 8451.19 -128.00 -1.49 over twice the posted limit be- Carrick Mollenkamp anteeing their loans, is moving in a company that Mr. Goodwin— Nasdaq 1649.51 +4.39 +0.27 fore the car crash that killed and Sara Schaefer Muñoz faster than expected at home. Last known as “Fred the Shred” for his DJ Stoxx 600 205.13 -16.65 -7.51 him Saturday, investigators said. week banks thought they had until cost-cutting zeal— has run with a FTSE 100 3932.06 -381.74 -8.85 gage lender HBOS PLC as the govern- the end of the year to raise capital. strict, detailed-oriented hand for DAX 4544.31 -342.69 -7.01 ment accelerates a rescue package Instead, after a weekend of fren- the past eight years , and that has Allianz is a registered trademark of Allianz SE, Germany. Allianz SE is the parent company of entities around the world such as AGF, Editorial&Opinion that was unveiled just days ago to zied work, the Treasury and four of seen its share price fall some 70% Allianz Global Investors and Dresdner Bank. The range of services in different markets may vary. CAC 40 3176.49 -266.21 -7.73 Finally, a crisis plan halt a dive in bank stock prices. The the U.K.’s biggest banks RBS, Bar- since early summer. He’ll have to Euro $1.3520 -0.0126 -0.92 U.K. is set to unveil an investment in clays PLC, HBOS and Lloyds TSB Europe pulls together to avoid complete the difficult integration of F1 FORMULA 1 (& device), F1 FIA Formula One World Championship (& device), FORMULA 1, FORMULA ONE, F1 and translations Nymex crude $77.70 -8.89 -10.27 its banks of more than £35 billion Group PLC are expected early Mon- ABN Amro’s London investment- thereof are trademarks of Formula One Licensing BV, a Formula One Group Company. All rights reserved. a rerun of 1929. Money & Investing > Page 19 Review & Outlook. Page 13 ($59.70 billion) Monday. day to detail how they will raise at banking unit and its wholesale oper- The U.K. is expected to inject at Please turn to page 31 Please turn to page 31 2 MONDAY, OCTOBER 13, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. MONDAY, OCTOBER 13, 2008 31 THE FINANCIAL CRISIS THE FINANCIAL CRISIS Euro-zone economies set to detail plans to prop up banks IMF says nations are ready to contain crisis Continued from first page isting borrowing facility at the expected to ask the German parlia- bank Hypo Real Estate Holding AG strengthen banks’ ability to absorb tried to draw up a common Euro- Bank of England. ment for authority in coming days nearly fell apart Oct. 4. Berlin was credit losses, and make them more tries…But the fact that all the gov- governments have often appeared help capitalize troubled banks. nance, operations and disclosure. pean strategy by allowing each U.K. Prime Minister Gordon to grant guarantees for banks’ then forced to stitch together an willing to lend money to each other, Commitment, short ernments are now committed to do to act in an ad hoc and uncoordi- Late last year and early in 2008, Essentially, they were aimed at country to pick and choose which Brown presented this plan to Euro- debts and to buy stakes in banks. even bigger bailout for Hypo with rather than depositing their avail- that is a very, very strong commit- nated fashion. While central banks sovereign wealth funds—govern- making clear that the funds were parts to implement—without forc- pean leaders in Paris on Sunday, af- Volker Kauder, leader of Ms. Mer- help from Germany’s leading banks. able funds with central banks for on specifics, is aimed ment, and I hope that the market from Europe and the U.S. agreed on ment-owned investment funds, operating for commercial pur- ing Germany or the U.K. to pay for ter which he told reporters he ex- kel’s conservative bloc in parlia- German officials say they are safety’s sake. will understand that,” Mr. Strauss- a coordinated rate cut of 0.50% re- with perhaps $3 trillion in total as- poses. others’ choices. pected to see renewed confidence ment, said Germany aims to rush concerned that financial turmoil The government fund would be at boosting confidence Kahn said. cently, the finance ministries sets—were buying large stakes in While concern about the motives While there will be no common in the banking system in the next the legislation through in the next could spread to several lenders at open to state-sector Landesbanken Despite committing more than haven’t been able to agree on simi- Citigroup Inc., Merrill Lynch & Co., of the funds has dissipated as the European bailout fund, govern- few days. “I’m confident that after week. once unless they act to boost the en- as well as private-sector commer- By Bob Davis $1 trillion to rescuing financial in- lar, coordinated action. Morgan Stanley, UBS AG and other search for global capital has intensi- ments have said they will rescue speaking to my European col- German banks and insurers have tire sector. In particular, Germany’s cial banks and insurers, said the stitutions, national governments Instead, actions by some coun- Wall Street mainstays. The share fied, they want to head off any na- their own banks when needed. The leagues that they agree with the been piling pressure on Berlin to state-owned regional banks, called people familiar with the plan. WASHINGTON—National gov- have been unable to restore confi- tries to get a handle on their finan- prices of those firms have plum- tionalist backlash in the future. One three elements of the plan we’ve support the financial sector as a Landesbanken, are causing the gov- “common basket of instruments,” Banks that aren’t facing a solvency ernments around the world have dence that they can contain deepen- cial problems have sometimes meted since then, making the principle, for instance, says that put forward,” he said. whole, especially since the U.K. said ernment concern. Several of them as German Chancellor Angela crisis could also tap the fund. agreed to do what is necessary to ing economic problems. The IMF worsened woes elsewhere. For in- funds more cautious about invest- “relevant financial information” re- dubbed them, are roughly based on Germany was expected to ap- it would recapitalize its banks last have already suffered heavy write- prevent another major financial in- meeting was another effort to build stance, the Irish government’s ing further. garding a fund “should be publicly a plan the U.K. announced last week prove state guarantees for bank bor- week. German lenders feared they downs on U.S. mortgage-related se- But Germany is likely to ask for stitution from failing, the Interna- confidence and lift markets. Al- broad guarantee of deposits The Abu Dhabi Investment Au- disclosed to demonstrate its eco- to stabilize its financial system. rowing of over a hundred billion eu- would be at a competitive disadvan- curities, depleting their capital. Of- changes at banks that seek an injec- tional Monetary Fund’s managing though the meeting didn’t produce prompted investors in other na- thority, widely regarded as the nomic and financial orientation.” This will see its government invest ros, and a fund of tens of billions of tage compared with U.K. banks ficials at some Landesbanken admit- tion of capital from the state, includ- director said, although he didn’t a specific action plan, Mr. Strauss- tions to shift their money to Ire- world’s largest sovereign wealth But the code is bound to be criti- up to £50 billion ($85.28 billion) in euros to recapitalize its banking sys- when it came to borrowing funds in ted Friday that they are finding it in- ing an overhaul of corporate strate- specify any measures. Kahn hinted that such plans would land. Recognizing the problem, the fund, with perhaps $900 billion in cized as insufficient, because it banks, taking stakes in those that tem, according to people familiar international markets. creasingly difficult to raise funds gies. German Finance Minister Peer During weekend meetings, the be forthcoming. The IMF meeting Group of 20 nations—the big indus- assets, took a $7.5 billion stake in doesn’t ask firms to disclose their take up the financing. The govern- with the plan. In addition, Germany’s govern- on capital markets, forcing them to Steinbrück has criticized some IMF’s 185 member nations en- came ahead of a meeting of Euro- trial nations plus China, Brazil and Citigroup in November. Hamad Al- purchases, and there is no enforce- ment will also back debt issues for As with the U.S. bailout plan, Ger- ment has had a change of heart cut back their lending to German Landesbanken for having “no sus- dorsed an earlier commitment by pean nations in Paris on Sunday. other powerful developing coun- Suwaidi, an ADIA director and also ment mechanism. the banks with up to £250 billion of many’s plan will require legislative about the feasibility of case-by- companies. tainable business model”. the leading industrial nations to European officials privately put tries—said at the IMF meeting that undersecretary of Abu Dhabi’s de- Also at the meeting, the Interna- taxpayers’ money, while adding an approval. German Chancellor An- case crisis prevention, after a bail- The German government hopes —Alistair MacDonald in London “use all available tools” to prevent the onus of the problems on the they are “committed to ensuring partment of finance, left open the tional Finance Corp., the private- extra £100 million to extend an ex- gela Merkel’s governing coalition is out plan for stricken Munich-based its recapitalization fund will contributed to this article. the failure of “systemically impor- U.S. They argue that markets know that actions are closely communi- possibility that ADIA may make ad- sector lending arm of the World tant” financial institutions. Essen- that Europe won’t let institutions cated so that the action of one coun- ditional investments along those Bank, said it is planning a $3 billion tially that meant “no one is going fail systemically now—Europe is re- try does not come at the expense of lines. “Proposals are coming in fund to capitalize small banks in to let an important financial insti- luctant ever to let any institution others or the stability of the sys- daily,” he said. “We’re evaluating poor countries affected by the fi- tution fail,” said the IMF chief, Do- fail. The U.S. decision to let Leh- tem as a whole.” our options with other financial in- nancial crisis. While that is small RBS CEO is likely to depart as U.K. banks ready bailout plans minique Strauss-Kahn. man Brothers Holdings Inc. go World Bank Chief Economist stitutions.” change in the context of the U.S. “It can be done in different broke, Europeans say, raised mar- Justin Yifu Lin said there is a “con- David Murray, chairman of the and Europe, the fund is aimed at Continued from first page to shore up both bank capital and ac- leave the door open to return to the shareholders at a discount in a His first big job was running Cly- ways, depending on different coun- kets’ doubts about U.S. resolve. sensus” among policy intellectuals Australian Future Fund, said the limiting the effects of the crisis in least £35 billion, including how cess to funding for RBS, Barclays, government for help if markets dete- rights issue in June desdale Bank PLC in Glasgow. Since the Lehman failure, on internationally that “we are in a fund was helping to bolster finan- poor nations. much each bank will raise from Brit- HBOS and Lloyds. The three- riorate. The government’s stepping in to While he was there, a local colum- Sept. 15, the U.S. has been trying to globalized world, financial flows cial stability by buying “a very sub- The IMF also said it is ready to ish taxpayers and from private in- pronged plan calls for capital in- Much of the market’s concern in control RBS will have repercussions nist stuck with him with the “Fred CORRECTIONS & regain market confidence, and are cross-border, and if we do not stantial quantity of bank bills” in lend to nations that get battered by vestors. Plans were still in flux Sun- creases to counter losses, state- recent days focused on RBS, which for the U.K. economy. RBS is a mas- the Shred” nickname because of AMPLIFICATIONS Treasury is now clearing the way have a coordinated, systematic Australia. “The money was too the crisis, particularly those coun- day evening. backed debt issues for the banks, is facing the double-whammy of a sive lender with 60% of its income Mr. Goodwin’s cost cutting. It was for the government to take stakes way to deal with this kind of issue, good to not back,” he said. tries that may see a big decline in The U.K.’s steps are so dramatic and a wider borrowing facility at rapidly falling stock as well as loom- generated in the U.K. The bank also also while he was there that he got in significant financial institu- then it will be hard to restore confi- Messrs. Al-Suwaidi and Murray export earnings and aren’t able to that government regulators in Lon- the Bank of England. ing billions of pounds of debts. Mr. has a £282 billion U.K. portfolio of to know George Mathewson, the The “Cold War Modern: Design tions, rather than simply buy those dence.” That lesson has taken were in Washington for the IMF pay their international bills. Many don had weighed delaying stock A lack of details about the plan Goodwin internally has said he will loans to British homeowners, credit- then-chief of RBS. One night at an 1945-1970” exhibition at the Victo- institutions’ illiquid assets. The some time to be accepted in na- meetings to release a voluntary of the countries the IMF considers trading on Monday to give investors and concern about weakening finan- step down to pave the way for a suc- card users, and real-estate compa- art exhibition, Mr. Mathewson si- ria and Albert Museum in London in- Treasury had largely sold its $700 tional capitals, he said, but he con- code of good conduct aimed at re- most vulnerable, apart from crisis- time to digest the news. On Sunday cial markets sent bank stock prices cessful capital raising. Stephen Hes- nies. The bank, which had a £1.8 tril- dled up to Mr. Goodwin to ask cludes radios by Dieter Rams. The billion rescue plan as a way to pur- sidered the coordinated rate cut a ducing concern that the funds racked Iceland, are in Eastern and night, a spokesman for the London down on Thursday and Friday. RBS ter, CEO of real-estate group British lion balance sheet as of June 30, whether Mr. Goodwin would join Top Picks column in the Weekend chase toxic assets. sign of the growing acceptance. might be acting for political mo- Central Europe, including the Bal- Stock Exchange said the market shares closed Friday at 71.70 pence, Land Company PLC, is expected to now is expected to dramatically de- as his deputy. Journal section of the Friday-Sun- Part of the problem in restoring A big question is where the tives. The 24 principles that the tic nations, Poland, Romania, would be open for trading as usual. about half of what they were at the succeed Mr. Goodwin. crease its loan book in coming In 2000, the two defeated Bank day edition incorrectly spelled the market confidence is that national money is going to come from to funds agreed on covered gover- Ukraine and Turkey. It was the second round of late- start of the week. Meanwhile, the U.K. is expected months, meaning that it will lend of Scotland in a bid to buy one of last name of the designer as Ram. night sessions. The bailout plan was The government is also consider- to underwrite a capital injection of less, which could send the economy Britain’s biggest banks, National originally put in place during all- ing changing its plan to require that at least £15 billion into RBS. Existing into a deeper funk. Westminster. Last year, Mr. Good- Bonhams Auctioneers says it night meetings Tuesday between of- the banks keep more capital on shareholders will be offered the “I think there could be quite a sig- win one-upped British rival Bar- had sales of $600 million in 2007. A INDEX TO BUSINESSES ficials at the Treasury and their ad- hand, a move that would make them chance to take a piece of the offer- nificant impact actually in ways clays in leading a European bank Corporate News page article Tues- visers at UBS and J.P.Morgan Cazen- operate more conservatively and ing, but it is unlikely they will take that are quite surprising if that kind consortium to buy Dutch bank ABN day on the sale of a majority stake in 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 ove, bank executives and other gov- less profitably. enough to keep a majority of the of bank, as an active and aggressive Amro Holding NV for $101 billion. Phillips de Pury & Co. incorrectly boldface type in all articles except those on page one and the editorial pages. ernment officials. On Sunday night, In detailing its plans Monday, shares in private hands. lender, shuts up shop,” said Stephen The deal, though, came just as said Phillips was the third-largest bankers and officials expected to Barclays is expected to say it plans On Sunday, a person familiar Regan, an economics professor at the credit crisis was beginning. Mr. auction house, with 2007 sales of Aegis Group.6...... Credit Suisse .24...... Huawei Technologies.24 ...... Mattson Technology.29 ...... PCCW .2...... 4Swiss Life Holding.22 ...... work through the night again to put to raise between £5 billion and £7 bil- with the situation estimated that Cranfield University. Goodwin’s credibility took a hit this $308 million. Allianz SE .2...... 2Daimler .8...... Hypo Real Estate Holding .9 Mazda Motor.8...... Phillips de Pury.2 ...... Telefónica .2...... 5 in place details of the plan they lion and that it won’t need govern- RBS ultimately might need to raise Mr. Goodwin has had an out- spring when he announced the ear- American International Dassault Aviation.9 ...... IBM .2...... 9MBK Partners.24 ...... Providence Equity Partners The Children’s Investment hoped to announce before the mar- ment help. The bank, which is in the £15 billion. That means RBS will sized presence at the bank. Grow- lier rights issue. A frozen bank-debt Group ...... 22,32 Deutsche Bank .25...... INA.9...... Microsoft .2...... 9.2...... 4Fund .9...... ket opens Monday. process of integrating the North have raised nearly £30 billion in less ing up the son of an electrician in market in more recent weeks has Apax Partners.24 ...... Deutsche Börse.9 ...... Intel ...... 9,29 Mitchells & Butlers.20 ...... Publicis Groupe.6 ...... Toll Brothers .22...... The Treasury last Wednesday American operations of Lehman made it especially tough for RBS to Toyota Motor .8...... than six months, including the £12 Paisley, Scotland, he entered the Apple .2...... 9DTZ .2...... 3Interpublic Group.6 ...... Mitsubishi UFJ Financial Renault .9...... outlined a broad blueprint designed Brothers Holdings Inc., is likely to billion by selling shares to existing banking industry as an accountant. refinance existing debt. ArcelorMittal .6...... E.On .2...... 5J Sainsbury.2...... 0Group .2...... 5Royal Bank of Scotland TPG .2...... 4 Assicurazioni Generali.22 ..... eBay.2...... 9J.P. Morgan Chase.7 ...... Mizuho Financial Group.25 ... Group ...... 1,25 TUI .9...... TUI Travel.9...... AXA ...... 22,23 Kaupthing Bank.20...... MobileOne .9...... Samsung Group.9 ...... Électricité de France.9 ...... UBS .2...... 4 MOL .9...... Severstal .6...... Bain Capital Partners.24...... European Aeronautic Kuehne + Nagel UniCredit.2...... 5 Barclays .2...... 3Defence & Space.9 ...... International.9 ...... Morgan Stanley.25...... Signal Iduna Pensionskasse United Co. Rusal.6 ...... BASF.2...... 5Evraz Group .6...... Landsbanki Íslands.16 ...... Neptune Orient Lines.9 ...... 9...... VMware .2...... 2 British Land’s Hester set to take RBS reins Australian currency’s fall Baugur Group.20...... Ford Motor ...... 8,20 Lehman Brothers Holdings Nomura Holdings.25 ...... Singapore Press Holdings .9 Wachovia .7...... Bringing Universities and British Energy Group.9 ...... Friends Provident.22 ...... 20,25 Nova Haus Element.4 ...... Sinochem .9...... Washington Mutual.7 ...... Continued from first page Neither Mr. Hester nor a spokes- Businesses Together General Electric.25 ...... Macquarie Group.24 ...... Novolipetsk Iron & Steel Soco International.9 ...... Brunswick Corp..29 ...... Wells Fargo & Co..7...... ations in the Netherlands, which Mr. man from British Land Company Carlyle Group.2...... 4General Motors ...... 6,8,20 Magnitogorsk Iron & Steel Works .6...... Standard Life.22 ...... Wieden + Kennedy.6 ...... appears set to continue Cerberus Capital GMAC .8...... Works .6...... Nvidia .2...... 9StarHub .9...... WPP Group.6...... Goodwin bought last year as part of could be reached for comment. US Election Night 2008 Management ...... 8,20 Google .2...... 9Man Group.2...... 3OAO Norilsk Nickel.6 ...... Sumitomo Trust & Banking Yamato Life Insurance 20,22 a consortium in the biggest banking Known by former colleagues as By Sam Holmes accounted for a hefty portion of Aus- Chrysler .8...... Gottex Fund Management 23 MannKind .2...... 2Omnicom Group.6 ...... 2...... 0Zurich Financial Services 22 deal ever. And he’ll have to grapple energetic problem-solver, Mr. Hes- tralia’s robust economic growth in Up to the minute national Cisco Systems.29 ...... Hardy Amies .6...... with the troubled finances of a bank ter was brought to UK lender Abbey SYDNEY—Panic in financial mar- recent years. Threats to this trade election coverage, Citigroup .7...... Hewlett-Packard.29 ...... that has significant holdings of kets has turned the Australian dol- raise doubts about both the coun- Cobham .9...... HSH Nordbank.9...... National—now part of Spanish entertainment and panel INDEX TO PEOPLE soured corporate-buyout loans, and bank Banco Santander S.A.—in lar into one of the world’s worst-per- try’s economy and its currency. discussions that derives most of its income from 2002 as finance director to help forming currencies in recent weeks, The collapse in the currency rela- FREE daily access the UK, Europe and the US—all of with its prospects of a recovery hing- tive to a broad range of its counter- This index lists the names of businesspeople and government regulators straighten out problems caused by 1 which are in recession or headed in the bank’s risky bets on invest- ing closely on calm returning to glo- parts—including the New Zealand 4 and 5 November to WSJ.com who receive significant mention in today's Journal. that direction. bal exchanges. dollar— has been one of the most 9pm-9am ments in high-yield securities and If you bought today’s paper from 1 For more people in the news, visit Mr. Hester’s experience will private equity. He later became Ab- The rout contrasts with the cur- spectacular in recent market his- a retail outlet, simply register at: CareerJournal.com/WhosNews give him some advantages. “He’s by’s chief operating officer. rency’s surge to a 25-year high and tory. Late Friday in New York, the Hilton Amsterdam wsj.com/reg/coupon [a] very bright, knowledgeable post-float peak of 98.51 U.S. cents in Australian dollar was trading at Prior to being tapped by Abbey, 64.71 U.S. cents, down about 33% or renew at: wsj.com Ader, David .2...... 0Ghosn, Carlos .9...... Kuehne, Klaus-Michael .9... Petrie, Mark ...... 19,21 banker who has proven himself as mid-July as commodities prices a trouble-shooter, and in bringing he spent 19 years at Credit Suisse rose and the U.S. dollar weakened. from the 25-year high struck three Tickets & Info Today's code is: EUROPE-X-619 Ballmer, Steve.29...... Glazer, Lawrence ..... 19,21 Lee Kun-hee .9...... Pohle, Klaus .9...... First Boston, holding various in- Potanin, Vladimir.6 ...... together big deals,” says Michael The Australian dollar hit a five- months earlier. www.aabc.nl Bergsten, C. Fred.3...... Goodwin, James.6 ...... Lentz, Jim .8...... vestment-banking roles and becom- Brown, Adam...... 19,20 Granda, Juan Carlos.5 ...... Levy, Maurice.6 ...... Radford, John.22 ...... Hintze, chief executive of London year low of 64.39 U.S. cents last Conventional wisdom based on THE WALL STREET JOURNAL EUROPE (ISSN 0921-99) Bruner, Robert F..3 ...... Halloran, Peter.5...... Liddy, Edward.32 ...... Rakesh, Vijay .9...... based hedge fund CQS who ing chief financial officer in 1996, week as investors continued to un- historic levels and recent economic Boulevard Brand Whitlock 87, 1200 Brussels, Belgium Ralston, Nicola.23 ...... according to a biography of him on Burt, Tye .6...... Helenius, Joakim.4 ...... Linowsky, Karsten.24 ...... Reuters Contact: Telephone: 32 2 741 1211 FAX: Business: 32 2 732 1102 Rams, Dieter .2...... worked with Mr. Hester in the in- wind riskier investments while pros- indicators suggest the Australian Hoover, Amy .6...... Llan, Manuel .5...... [email protected] News: 32 2 741 1600 Editorial Page: 32 2 735 7562 Camacho, Pablo.5 ...... Reid, Dustin .20...... vestment-banking unit of Swiss British Land Chief Executive Stephen the British Land Company’s Web pects for global economic growth dollar has fallen too far, analysts Howie, Robert.23 ...... Manser, Chris .23...... SUBSCRIPTIONS, inquiries and address changes to: Cervone, Tony.8 ...... Richards, John.25 ...... bank Credit Suisse AG. Hester is poised to take the reins at RBS. site. He is known for helping Credit appeared to worsen. say. Telephone: +44 (0) 207 309 7799 Calling time from 8am to 5.30pm GMT Cohen, H. Rodgin.3 ...... Hurley, Cornelius.3 ...... Marcus, Ann-Marie.6 ...... Sasaki, Tohru.20 ...... The Wall Street Journal Europe E-mail: [email protected] Website: www.services.wsje.com Suisse purchase the European eq- Cook, Allan .9...... Idzik, Paul .2...... 3Mason, Joseph.3 ...... Seidman, Ellen.3 ...... As chief executive of British Analysts say the currency likely Only the Brazilian real has is read every day by 27,000 Advertising Sales worldwide through Dow Jones uity and investment banking busi- International. Frankfurt: 49 69 971428 0; London: 44 207 842 9600; Crittenden, Gary.7 ...... Immelt, Jeffrey.25 ...... McClain, Cathy.29 ...... Sherin, Keith.25 ...... Land, Mr. Hester has spent his has further to fall before it stages a dropped further during the past 12 students at 180 top business Paris: 33 1 40 17 17 01 Crutchfield, Dean.6 ...... Irvine, Phil .2...... 3Mok, Edwin .9...... Steel, Robert .7...... time recently dealing with real-es- estate trusts in the U.K., with a nesses of UK bank Barclays PLC’s recovery. weeks, according to Robert Rennie, schools and university Printed in Belgium by Concentra Media N.V. Printed in Germany by Dogan David-Barrett, Tamas.4.... . Janedis, John .6...... Mordashov, Alexei.6 ...... Steuart, John .29...... tate investments in a declining portfolio valued at £13.5 billion BZW unit for a bargain price of Commodities prices, the key fac- chief currency strategist at Westpac campuses across Europe, a Media Group / Hürriyet A.S. Branch Germany. Printed in Switzerland by Struckett, Mark.23 ...... Zehnder Print AG Wil. Printed in the United Kingdom by Newsfax International Dawson, Tim.22...... Jen, Stephen.20 ...... Morning, Andy.29 ...... £100 million in 1997. program supported by: Tchenguiz, Robert.20 ...... market—one of the issues facing and projects that include the rede- tor behind the Australian dollar’s Banking Corp. “By any stretch of the Ltd., London. Printed in Italy by Telestampa Centro Italia s.r.l. Printed in Spain Deripaska, Oleg .6...... Kahn, Alan .2...... 9Mulally, Alan .8...... by Bermont S.A. Printed in Ireland by Midland Web Printing Ltd. Printed in Israel Thomson, David.22 ...... RBS with its U.K. property market velopment of London’s Euston Sta- However, he was passed over by strength for much of this year, have imagination the currency is over- di Montezemolo, Luca Keiser, Richard.29 ...... Nagano, Yoshinori.25 ...... by The Jerusalem Post Group. Printed in Turkey by GLOBUS Dünya BasInevi. Torres, José María.5...... sold,” he said. “Where does it go Cordero .6...... Kelly, Edward .7...... Nakazono, Takeo.20 ...... exposure. Mr. Hester became CEO tion . British Land has recently Chief Executive John Mack to run also pulled back from their historic Registered as a newspaper at the Post Office. Truby, Mark .8...... seen a drop in the value of its as- Credit Suisse First Boston’s newly highs, and there are growing signs from here? It’s very much down to Trademarks appearing herein are used under license from Dow Jones & Co. Edelstenne, Charles.9 ...... Kesner, Michael.22 ...... Nguyen, Bill .29...... Viermetz, Kurt.9...... of the British Land in 2004, and © 2008 Dow Jones & Company All rights reserved. took it from a family-centered op- sets as commercial property combined stock and bond units in there is more pain to come. what equities markets do and finan- Editeur responsable: Daniel Hertzberg M-17936-2003 Funke, Georg .9...... King, Matt .2...... 3Pandit, Vikram.7 ...... Warmenhoven, Dan .9...... Gallois, Louis .9...... Kovacevich, Richard.7 ...... Pelata, Patrick.9 ...... Wieandt, Axel.9 ...... eration to one of the biggest real prices in the U.K. have fallen. 2001. He subsequently left the firm. Trade in primary resources has cial markets do in general.” 30 MONDAY, OCTOBER 13, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. MONDAY, OCTOBER 13, 2008 3 ON OTHER FRONTS THE FINANCIAL CRISIS

7 The Vatican’s newspaper Dispatch / By Stacy Meichtry of record, L’Osservatore Romano, has been undergoing a makeover at Nations face thorny issues over bank stakes the behest of Pope Benedict XVI. ments were repaid in full.” tion.” ficials are trying to map out a strat- omy was back on its feet. Vatican’s staid paper now answers Price tags to get But today’s RFC would need to be So far, government officials have egy for potential bank investments. Several banking experts said far larger than its Depression-era remained mostly mum on the de- Among the variables they are con- they doubt the government will take credit flowing again counterpart. “Considering the state tails of how they will structure or ad- sidering is how aggressively the an activist approach. They said of today’s markets, I would suggest minister the capital injections. U.S. government would flex its mus- Washington is likely to restrict it- 7 to a higher power of the press could be daunting $1 trillion to $2 trillion,” Mr. Cohen One risk facing policy makers is cles in the boardrooms of banks self to nonvoting stakes that it will Vatican City servatory. Pressed on whether been calling for a shake-up. said in his speech. that if the capital injections are seen where it is a partial owner, accord- probably unwind within a few years. HE NEWSPAPER industry heaven might be open to such be- Founded in 1861, L’Osservatore By David Enrich ThatwoulddwarftheU.S.govern- as a government seal of approval, ing to a person who has been briefed “I don’t think we’ve reached the might be on the ropes, but ings, the Rev. Funes said: “Jesus has Romano has served as a mouthpiece And Stephen Power ment’snew$700billionTroubledAs- that could destabilize banks that on the discussions. point where we want the government one staid broadsheet is been incarnated once, for everyone.” of Vatican news, reporting the daily set Relief Program. That fund was don’t receive investments, causing Sweden provides a possible case calling all the shots in these institu- getting a makeover at the A month later the paper counter- routines of popes and providing am- As governments in the U.S. and originally intended to buy illiquid their customers to jump to other in- study. In the early 1990s, the Swed- tions,” said Cornelius Hurley, direc- behest of a lofty patron: attacked the international media ple space for their writings, often in Western Europe consider plans to mortgage-related assets from lend- stitutions, said Ellen Seidman, a ish government bought stakes in tor of Boston University’s Morin Cen- PopeT Benedict XVI. for speculating that the pontiff’s Latin. It was also considered a clear- buy stakes in struggling banks, pol- ers, but government officials said former economic adviser in the Clin- many lenders that were teetering ter for Banking and Financial Law. “It In its 147 years as the Vatican’s preferred ruby-red loafers were ing house for semi-official thinking icy makers face a potentially daunt- this week that it could also be a vehi- ton administration. on the brink of insolvency. Instead was only a few months ago that we newspaper of record, L’Osservatore made by Prada, insinuating he had a on touchy issues such as birth con- ing price tag and thorny questions cle for capital injections into banks. “It’s counterintuitive, but if of staying on the sidelines as a pas- were worried about sovereign wealth Romano has rarely chased advertis- taste for material goods. In an arti- trol and women in the clergy. about how such programs will be im- “The big question is how Trea- we’ve learned one thing from this sive investor, the government funds” from the Middle East and Asia ers, or even news. Hard to find be- cle, Spanish novelist Juan Mañuel The broadsheet has long drawn plemented. sury uses the $700 billion that Con- crisis, it’s that we have a hard time pushed to overhaul the country’s taking sizable stakes in U.S. and West- yond the world’s smallest state, the de Prada—no relation to the Italian criticism, often from within the In the U.K., Germany, France and gress has given them,” said C. Fred predicting the behavior of the banking industry, ousting execu- ern European banks. Vatican’s daily paper largely dedi- fashion house—wrote: “The pope highest ranks of the Church. In 1961, the U.S., government officials have Bergsten, director of the Peterson In- smaller savers and investors,” said tives and forcing mergers in an at- Now, Mr. Hurley added, “the sov- cated its pages to theological mono- does not wear Prada, but Christ.” Cardinal Giovanni Battista Montini, either unveiled or hinted at plans to stitute for International Economics, Ms. Seidman, now at the New Amer- tempt to cleanse the system of ail- ereign wealth fund is us.” logues with headlines like “The Lep- Mr. Vian says Pope Benedict then the Archbishop of Milan, pump taxpayer funds into cash- a Washington-based think tank. “It’s ica Foundation. ing institutions, said Mr. Bruner of —Marshall Eckblad rosy of Sin.” grants him considerable editorial in- penned a stinging critique of the pa- strapped lenders. In exchange, the becoming clear a big chunk of that Treasury Secretary Henry Paul- the Darden School. Within 18 and Matthias Rieker Those days are over. Now, the dependence, most of the time. Sto- per and published it on governments would take ownership should be used for direct recapitaliza- son and other senior government of- months, he said, the Swedish econ- contributed to this article. Vatican mouthpiece has orders to ries about countries that have trou- L’Osservatore’s 100th anniversary. ica. His father ran the Vatican li- Mr. Vian has cut back on free sub- interests in the banks in the form of carry hard-hitting news, interna- bled relations with the Vatican, “Even when the headline page is brary and counted Pope Paul VI scriptions. He recently struck a deal preferred shares, essentially nation- tional stories and more articles writ- such as China, are vetted by the Vati- not in Latin, one cannot always say among his friends. with a northern Italian newspaper alizing broad swaths of the banking ten by women. can’s Secretary of State, Cardinal that it provides enjoyable reading,” Mr. Vian began writing for the to include L’Osservatore as a Sun- industries and reversing a decade- “There was a really precise re- Tarcisio Bertone, says Mr. Vian. wrote Cardinal Montini, who later Italian Catholic daily Avvenire at day insert. long deregulatory trend. quest from the paper’s publisher,” Then there are the pontiff’s per- became Pope Paul VI. “A serious the age of 21, though he was work- So far, response to the revamp The hope is that the fresh capital Giovanni Maria Vian, the paper’s sonal requests. newspaper, a grave newspaper, but ing toward a Ph.D. in philology. Por- has been mixed. Lucia Annunziata, will improve tattered bank balance new editor-in-chief, said in a recent During a meeting between Pope who would ever read it on the tram ing over the ancient manuscripts of the well-known host of a television sheets and provide a much-needed interview at his office within the me- Benedict and Mr. Vian soon after the or at the bar, who would ever strike St. Athanasius of Alexandria, Mr. news talk show, says the paper has confidence boost for the financial dieval walls of Vatican City. “In this editor was hired, the conversation up a discussion about it?” Vian says, was excellent training for become a “must-read.” system. The erosion of confidence, case, the publisher just happened to turned to layout. The decades that followed were the news business. “Reporting that Father Juan Diego Chavez, a especially in the past month, has led be the pope.” “He looked at me and said, ones of steady decline. The paper is worthy of being called journalism 33-year-old priest who lives in fearful bankers and investors to Runs Oracle A church historian and longtime ‘Perhaps the pages could use an ex- bled readers by the tens of thou- always relies on the strength of Rome, called the changes “pleas- stop lending. That is threatening to journalist, Mr. Vian was tapped by tra photo or two,’” Mr. Vian recalls. sands; its daily edition, published in sources,” he says. ant,” though he says he still prefers freeze economies world-wide. Pope Benedict a year ago to make “Well, we now have more photos.” Italian and sold for Œ1 ($1.35) on Among L’Osservatore’s 100 or so to get his non-theological news “By the government stepping in the sleepy, parochial paper a bit On a recent morning, Mr. Vian di- newsstands, currently has a circula- reporters, editors and administra- from other papers. with preferred-stock investments… more worldly. In recent weeks, the rected coverage of a Vatican synod, tion of about 15,000. tive staff, Mr. Vian is known as “the Still, stories that fall beyond Vati- they relieve that uncertainty and Data Warehouses Vatican daily has been giving sober, a world-wide meeting of bishops, Advertisers all but disappeared. professor.” can walls are fair game, Mr. Vian should be able to promote the resto- blow-by-blow accounts of the inter- from his office. On one wall hung a The sole ad in a recent edition an- As the new editor began playing says. In a recent front-page edito- ration of confidence and lending,” national financial crisis. poster of French comic book hero nounced that the southern Italian with the paper’s layout, he elicited rial, the Vatican mouthpiece put a said Robert F. Bruner, dean of the Few topics are deemed too bi- Tin Tin, the death-defying journal- town of Brindisi was delaying the protests from its graphic designers. biblical spin on the financial crisis. Darden School of Business at the zarre or mundane. In May, ist. On another was a portrait of hiring of a contractor to upgrade Black-and-white photos of the “Money disappears. It is nothing. University of Virginia. L’Osservatore ran an interview with Pope Benedict and a crucifix. computer systems at the local pub- pope’s daily routines were now off- We see this now with the collapse of But it isn’t clear how much the Vatican’s top astronomer. “If we Speaking as reporters, including lic health department. limits. Mr. Vian prefers color pho- big banks,” the editorial quoted money governments will need to in- consider earthly creatures as one nun, floated in and out of his of- Mr. Vian’s appointment as the pa- tos, fewer banner headlines and Pope Benedict as saying. “He who vest in the multitrillion-dollar glo- ‘brother’ and ‘sister,’ why cannot we fice, Mr. Vian concedes that per’s first new editor-in-chief in more stately typefaces. builds his life on material success… bal banking sector. Key details, such 10x Faster also speak of an ‘extraterrestrial L’Osservatore’s overhaul has left more than two decades is a renais- In his quest to expand reader- builds on top of sand.” as the role governments will play brother’?” mused Father José Gab- some readers “a bit disoriented.” sance and a homecoming. He grew ship, while keeping to his annual —Davide Berretta overseeing companies, are likely to riel Funes, director of the Vatican Ob- But he believes that others had long up in the shadow of St. Peter’s Basil- budget of Œ4.5 million ($6 million), contributed to this article. ignite fierce debate among policy makers and industry officials. This wouldn’t be the first time the U.S. government effectively na- tionalized parts of the banking in- Swiss ethicists ponder the rights and feelings of plants dustry. In1932,inthemidstoftheGreatDe- Announcing By Gautam Naik Schefer, a member of the ethics panel boiling water? fearing that a mutant strain might bearing entities with “the right to ex- pression,CongressandPresidentHer- The World’s Fastest andaprofessoroflawattheUniversity “Where does it stop?” asks Yves run amok and harm the environ- ist, persist and…regenerate.” bert Hoover created the Reconstruc- ZURICH—For years, Swiss scien- ofBasel.“Theconstitutionrequiresit.” Poirier,amolecularbiologistatthelab- ment. Swiss geneticists say the dig- Dr. Keller in Zurich has more tion Finance Corp. Over its 25-year tists have blithely created geneti- In April, the team published a oratory of plant biotechnology at the nity rule makes their job even harder. mundane concerns. He wants to lifespan, the independent govern- Database Machine cally modified rice, corn and apples. 22-page treatise on “the moral con- University of Lausanne. “Should we Several years ago, when Christof breed wheat that can resist pow- ment agency bought stakes in more But did they ever stop to consider sideration of plants for their own now defend the dignity of microbes Sautter, a botanist at Switzerland’s dery mildew. In lab experiments, Dr. than 6,000 financial institutions and just how humiliating such experi- sake.” It stated that vegetation has an and viruses?” Federal Institute of Technology, Keller found that by transferring poured a total of $50 billion (not ad- ments may be to plants? inherent value and that it is immoral Seeking clarity, Dr. Poirier re- failed to get permission to do a local certain genes from barley to wheat, justed for inflation) into various parts • Hardware by HP That’s a question they must now to arbitrarily harm plants by, say, “de- cently invited the head of the Swiss field trial on transgenic wheat, he he could make the wheat resistant of the U.S. economy, according to Alex ask.Lastspring,thissmallAlpinena- capitation of wildflowers at the road- ethics panel to his university. In moved the experiment to the U.S. to disease. Pollock, a resident fellow with the tion began mandating that geneti- side without rational reason.” their public discussion, Dr. Poirier He’s too embarrassed to mention When applying for a larger field American Enterprise Institute. cists conduct their research without On the question of genetic modi- said the new rules are flawed be- the new dignity rule to his American trial, he ran into the thorny ques- The RFC’s investments came trampling on a plant’s dignity. fication, most of the panel argued cause decades of traditional plant colleagues. “They’ll think Swiss peo- tion of plant dignity. Plants don’t with senior voting rights, meaning • Software by Oracle “Unfortunately, we have to take that the dignity of plants breeding had led to widely ple are crazy,” he says. have a nervous system and probably the government wielded broad con- it seriously,” says Beat Keller, a mo- could be safeguarded “as available sterile fruit, such Defenders of the law argue that can’t feel pain, but no one knows for trol over the institutions, said Jo- lecular biologist at the University of long as their independence, as seedless grapes. Things it reflects a broader, progressive ef- sure. So Dr. Keller argued that by seph Mason, a banking professor at Zurich. “It’s one more constraint on i.e., reproductive ability took a surreal turn when it fort to protect the sanctity of living protecting wheat from fungus he Louisiana State University’s busi- doing genetic research.” and adaptive ability, are en- was disclosed that some things. Last month, Switzerland was actually helping the plant, not ness school. He said the RFC also Dr. Keller recently sought govern- sured.” In other words: It’s panel members believe granted new rights to all “social ani- violating its dignity—and helping barred the companies in which it in- mentpermissiontodoafieldtrialofge- wrong to genetically alter a plants have feelings, Dr. mals.” Prospective dog owners society in the process. vested from paying dividends to neticallymodifiedwheatthathasbeen plant and render it sterile. Poirier says. must take a four-hour course on pet One morning recently, he stood shareholders until they were finan- bred to resist a fungus. He first had to Many scientists inter- Back in the 1990s, the care before they can buy a canine by a field near Zurich where the cially healthy enough to buy out the debate the finerpoints of plantdignity pret the dignity rule as ap- Swiss constitution was companion, while anglers must three-year trial with transgenic government’s stake. with university ethicists. Then, in a plying mainly to field trials amended in order to defend learn to catch fish humanely. Fish wheat is under way. His observa- Today, experts are calling for the written application to the govern- like Dr. Keller’s, but some the dignity of all creatures— can’t be kept in aquariums that are tions suggest that the transgenic government to adopt the RFC as a ment, he tried to explain why the worry it may one day apply Beat Keller including the leafy kind— transparent on all sides. The fish wheat does well in the wild. Yet Dr. blueprint to stabilize the financial planned trial wouldn’t “disturb the vi- to lab studies as well. An- against unwanted conse- need some shelter. Nor can goldfish Keller’s troubles aren’t over. industry. tal functions or lifestyle” of the plants. other gripe: While Switzerland’s quences of genetic manipulation. be flushed down a toilet to an inglo- In June, about 35 members of a In a speech last month, H. Rod- He eventually got the green light. stern laws defend lab animals and Whentheamendmentwasturnedinto rious end; they must first be anes- group opposed to the genetic modifi- gin Cohen, chairman of law firm Sul- oracle.com/exadata The rule, based on a constitu- now plants from genetic tweaking, alaw—known asthe Gene Technology thetized with special chemicals, and cation of crops, invaded the test livan & Cromwell and one of the na- orcall+35318031099 tional amendment, came into being similar protections haven’t been Act—it didn’t say anything specific then killed. field. Clad in white overalls and tion’s pre-eminent banking lawyers, after the Swiss Parliament asked a granted to snails and drosophila about plants. But earlier this year, the In another unusual move, the peo- masks, they scythed and trampled called for the creation of a RFC-type panel of philosophers, lawyers, ge- flies, which are commonly used in government asked the ethics panel to ple of Ecuador last month voted for the plants, causing plenty of dam- agency to invest in banks. 10x performance improvement based on customer tests comparing averageperformanceofOracledatawarehousesonexistingcustomer neticists and theologians to estab- genetic experiments. come up rules for plants as well. a new constitution that is the first to age. “Not only did the program help systems versus HP Oracle Database Machines. Actual results may vary. lish the meaning of flora’s dignity. It also begs an obvious, if unre- The Swiss debate isn’t just aca- recognize ecosystem rights enforce- “They just cut them,” says Dr. arrest the deterioration of the bank- lated question: For a carrot, is there demic twittering. Like other coun- able in a court of law. Thus, the na- Keller, gesturing to wheat stumps ing system, but it did so without “Wecouldn’tstartlaughingandtell Copyright © 2008, Oracle. All rights reserved. Oracle is a registeredark of Oracle tradem Corporation and/or its affiliates. Other namesmarks may be of theirtrade respective owners. the government we’re not going to do a more mortifying fate than being tries in Europe, Switzerland has long tion’s rivers, forests and air are no left in the field. “Where’s the dignity loss,” said Mr. Cohen. “The vast ma- anything about it,” says Markus peeled, chopped and dropped into kept a tight rein on crop genetics, longer mere property, but right- in that? jority of the preferred-stock invest- 4 MONDAY, OCTOBER 13, 2008 THE WALL STREET JOURNAL. THE FINANCIAL CRISIS

Eastern Europe feels heat from meltdown If we live in a truly global economy, why The Vatican’s staid Financial woes send as severe an implosion as Iceland, government’s tax increases since founder of Trigon Capital, an invest- isn’t there a better system for responding broadsheet gets a people to therapy. Rising risk aversion Eastern imbalance where the government has warned 2006, which were aimed at repair- ment firm based in Tallinn. Latvia of possible “national bankruptcy” af- ing the country’s deteriorating pub- too faces a wave of business failures exacerbates strain; Emerging markets’ 2008 to a global economic shock? Page 5 makeover Page 30 WSJ.com/Health current-account balance as ter it was forced to take over all of lic finances. in coming months, he says, since the a percentage of gross domestic the country’s major banks, econo- The Hungarian forint weakened country’s economy, like Estonia’s, Hungary takes a hit s product mists say. to about 256 to the euro in Friday’s has overrelied on the retail and con- Copyright 2008 Dow Jones & Company. All Rights Reserved THE WALL STREET JOURNAL EUROPE. MONDAY, OCTOBER 13, 2008 29 Most banks in Central and East- trading, compared with around 230 struction sectors in recent years. By Marcus Walker Bulgaria 21.9% ern Europe are units of large interna- in July. If the forint sags further, The third Baltic country, Lithua- tional financial groups based in Hungary’s central bank will proba- nia, is in somewhat better shape Latvia 15.0 After Iceland’s financial melt- Western European countries such bly raise rates to support the ex- than its neighbors thanks to less-ex- down, investors and lenders are pull- Romania 14.5 as Sweden, Austria and Italy. That change rate, says Hungary econo- cessive borrowing by firms and con- ing back from financially over- Estonia 11.2 frees small East European nations mist and consultant Tamas David- sumers, and a stronger export sec- stretched economies in Europe’s such as Estonia from having to bail Barrett. “That would of course tor. Silicon Valley is feeling the credit crisis, too East, threatening to burst credit Lithuania 10.5 out their main domestic lenders sin- mean people who borrowed in Central European countries such bubbles in the Balkans and force Ukraine 7.6 gle-handedly, like Iceland. But it forint will be in trouble as well,” he as Poland, the Czech Republic and Venture capitalists founder of the Palo Alto, Calif., com- harsh downturns in Hungary and Turkey 6.7 also leaves local subsidiaries ex- says. Slovakia are also further down the pany, which currently has 35 em- the recently booming Baltic states. posed to a cutback in funds from The credit bubble has already list of crisis candidates, because ployees. “But now we just look at it Stocks, bonds and currencies Hungary 5.5 their foreign parent-banks. burst in Estonia and Latvia, where their growth in recent years has warn of funding and say we just can’t do it.” Instead, came under pressure Friday in many Source: International Monetary Fund “Iceland was a special case,” roaring growth rates of around 10% been fueled by exports to Western he wants to bank more money as re- of Europe’s post-Communist coun- says Reinhard Cluse, emerging-Eu- in recent years have given way to re- Europe, rather than real-estate and woes, painful slump serves, in case the downturn be- tries, driven by concerns that the cri- rope economist at UBS AG in Lon- cession. Much of the growth was in consumer bubbles. But these econo- comes more protracted, he says. sis in West European and U.S. bank- Now that the days of cheap don. “But the same rising waters the retail and construction sectors, mies face slower growth as foreign- By Pui-Wing Tam, Meanwhile, the people at busi- ing is poised to hit Central and East- credit are over, these countries face that flooded Iceland first are a prob- where cheap credit was the fuel. owned banks cut back lending and Ben Worthen nesses who buy computers and soft- ern Europe next. a painful economic contraction as lem for others, too.” Once-booming young businesses consumer demand slows in their And Robert A. Guth ware have also turned gun shy as Hungary’s markets and currency they learn to live within their means Many consumers and businesses in these countries are starting to main markets, such as Germany. the economy has slowed and liquid- took a particular beating, following a again as investors flee countries have large debts in foreign curren- fail as sales dwindle and banks pull The credit crisis has barely started HE U.S. technology indus- ity has dried up, putting their tech collapse in government bond trading with large external financing needs. cies taken out to exploit the rela- the plug. Nova Haus Element AS, an to hit home yet in Romania and Bul- try, which had seemed im- purchases on hold and cutting their Thursday and rumors of an impend- “Their chickens are coming tively low interest rates that were Estonian maker of houses, won a garia, where economic growth accel- mune to the financial cri- IT spending. ing state bailout of the country’s larg- home to roost, because of the cur- available in euros, Swiss francs or “developer of the year” award in erated in the second quarter, in con- sis, is now getting The information-technology de- est bank, OTP Nyrt, which the bank rent-account deficits and govern- yen. Many Hungarians could now 2007 from Estonia’s chamber of trast to downturns elsewhere in the squeezed on two sides: partment at Brunswick Corp., a and Hungary’s government denied. ment deficits they’ve been running. find their foreign-currency mort- commerce and employers’ associa- region. But funding for real-estate de- EstablishedT companies are strug- maker of recreational equipment A string of countries around Eu- These things simply aren’t possible gages are a growing financial burden tion. Last month it went bust amid velopments and mortgages is now gling with slackening demand while such as motor boats and bowling rope’s periphery are threatening to in today’s world,” says one London- as the local currency, the forint, heavy bank debts as the Estonian starting to dwindle. venture capitalists are telling start- Associated Press balls, was recently told to cut its bud- fall victim to investors’ rising risk based fund manager who has been sinks. “Borrowers can sustain some housing market sank. News of the global banking crisis ups to cut costs and plan for a pro- Several technology companies, including eBay, have announced layoffs in the past few weeks as business has slowed. get for 2009 by 35%, up from the 20% aversion. Many have relied heavily selling Eastern European curren- pain for a while, but not if these lev- “There are going to be some is already pricking Romanians’ bub- longed downturn. cut it was told to expect in June. on borrowing from abroad to fi- cies and other assets short. els stay,” says Mr. Cluse. pretty big casualties among compa- ble. Some wealthier locals have al- Sequoia Capital, which has in- As a result, the department nance their business activity and None of the Central and East Eu- Hungary’s economy is the weak- nies in property-related sectors and ready taken their money out of vested in Silicon Valley stars such it was cutting its staff by 14% be- wealthy individuals—are retreating won’t be starting new tech projects consumer spending. ropean countries are likely to face est in Central Europe, thanks to the retail,” says Joakim Helenius, banks. as Google Inc. and YouTube, gath- cause of the poor business environ- Slack demand from new investments because of anytime soon, says Cathy McClain, ered the chief executives of its port- ment. Change from a year earlier in the credit crunch. a division chief information officer folio companies last week and told Similar layoff notices are piling personal spending on computers, More troubling, there is growing at the Lake Forest, Ill., company. them to focus on becoming profit- up across Silicon Valley. Last week, peripherals and software worry among venture capitalists Among other things, that means Deripaska's empire able and take a hard look at ex- eBay Inc. said that it would cut 10% that some of these investors may re- Brunswick will freeze its plan to buy penses they could cut, according to of its work force, or about 1,000 full- nege on commitments they’ve al- human-resources management soft- Russia’s Deripaska faces Breakdown of 2007 revenue at 12% people who attended the event. time jobs. Last month, Hewlett- ready made. ware from Oracle. Oleg Deripaska's holding company, Sequoia’s partners, who began Packard Co. said it would cut John Steuart, a venture capital- Next year “we’ll just be keeping Basic Element, in billions 9 the special meeting with a slide that 24,600 employees, or 7.5% of its ist at Claremont Creek Ventures in the lights on,” Ms. McClain says. Western investigations Energy read “RIP: Good Times,” pored over work force, after a big acquisition, Oakland, Calif., experienced some “It’s brutal.” $16.21 dire economic data and warned that while chip maker Nvidia Corp. said 6 of the volatility firsthand when his Now the credit crunch is enter- By Glenn R. Simpson gated in the U.S. and U.K. origi- Manufacturing the current downturn will be long it would lay off 6.5% of its workers. firm recently sought to raise $175 ing the picture as its own force, hit- And Susan Schmidt nated with a Russian company Mr. 6.18 and painful, according to people Also last week, Microsoft Corp. 3 million. Mr. Steuart says two inves- ting the tech-financing industry. said it was reviewing its hiring Deripaska controls, UC Rusal, pass- Financial services present. Sequoia declined to com- tors asked to cut back on the This corner of the tech world allows plans for the current fiscal year, Russian billionaire Oleg Deri- ing through Barclays PLC offices in 1.92 ment. 0 amount of capital they had commit- businesses to buy technology that paska, whose business is facing a New York and London, according to Until a few weeks ago, the U.S. which began in July. In late Septem- 2005 ’06 ’07 ’08 ted by at least 20% because of the Construction they can’t afford to pay for all at squeeze amid the credit crisis, also emails, other documents and peo- tech sector looked relatively insu- ber, Chief Executive Steve Ballmer credit freeze. While Claremont once. Financing technology pur- 1.56 Source: Bureau of Economic Analysis is under investigation by U.S. and ple with knowledge of the transac- lated from a downturn, as tech com- cautioned that no company, even Creek had enough money raised chases is on pace to be a $100 billion U.K. authorities in connection with tion. Some of the funds ended up Resources panies rode still-strong interna- the software giant, is immune to the from other investors, Mr. Steuart a year industry by 2010, according a $57.5 million wire transfer last with Deripaska consultants in 0.63 tional sales and benefited from a turmoil. terly results are also expected to says, “the window for fund raising to research company IDC. year, according to people familiar Washington who, according to law- Aviation weak dollar. Tech companies also Companies like InterDyn AKA look strong. But many analysts are has closed.” But terms are tightening in the with the matter. yers and government officials, are 0.27 typically have little debt on their bal- show how quick the shift has been. bracing for bearish predictions for In response to the tightening en- wake of the credit crisis. While tech InterDyn, which buys software from Separately, in a second recent being investigated by the Justice Source: the company ance sheets, limiting their exposure the current quarter and next year. vironment, start-ups are battening purchases could previously be fi- blow to his industrial empire, Mr. De- Department and Manhattan dis- to the frozen credit markets—and Microsoft and resells it to busi- “There’s compelling evidence down the hatches. Music Web site nanced with no money down and re- ripaska is ceding a stake in a German trict attorney for possible money Zuma leading to a certain complacence in nesses, says it will cut back on pur- that expectations—particularly Lala.com, which is backed by ven- paid over as many as seven years in Oleg Deripaska, right, with Dmitry Medvedev in February, shortly before Mr. Medvedev became Russian president construction company, Hochtief. laundering or other crimes. Silicon Valley this summer as the chases from Microsoft because cus- those for 2009—remain too high, ture capital firms Bain Capital and some cases, a tech company or bank is Just a week ago, his holding com- The transfer is one of dozens un- credit crunch burned other indus- tomers are beginning to put and therefore negative revisions Ignition Partners, just decided to de- now more likely to extend a two-year pany, Basic Element, gave up a 20% der scrutiny. Authorities are look- yers said. A spokesman for Barclays they haven’t been contacted by ei- destabilizing effect on U.S. geopolit- tries. projects on hold. Making matters are likely to persist,” says Richard fer a lease on a new office space, cut loan, with a big payment due within stake in Canadian auto-parts maker ing into whether some of the declined to address specifics of the ther Justice or the Manhattan D.A. ical interests.” But the turmoil of the past few worse, InterDyn’s bank recently Keiser, a tech strategist for Sanford back on marketing costs, renegoti- 90 days, says Eliot Colon, president of Magna International Inc. money might have been moved in transactions but said: “We have ro- Records show that $9.75 million The U.S. is stepping up scrutiny weeks has changed that momen- asked the company to pay back a $1 C. Bernstein & Co. ate equipment leases and slow hir- Miro Consulting Inc., a software re- In a third development, U.S. Presi- connection with potentially illicit bust compliance programs in place, from the wire transfer went to of visa applications by Russian busi- tum. Venture capitalists are run- million credit line. Venture capitalists who have ing significantly. seller and consulting company. dent George W. Bush’s administra- activity in countries where Mr. Deri- and it is our policy to cooperate fully Messrs. Mirtchev and Ondeck’s nessmen suspected of criminal ties. ning into trouble raising new funds “I’ve never seen a climate like been trying to raise money in recent “Up until recently we were still —Don Clark, Yukari Iwatani Kane tion is putting Russian economic in- paska’s industrial interests have op- with any investigation or request firm. The lawyer for the firm con- A recent Justice Department memo and tech vendors are getting this in my life,” says Alan Kahn, co- weeks say their investors—includ- competing with Apple and Google and Bobby White terests under greater scrutiny, erations, including Nigeria and Ka- from law enforcement.” A spokes- firmed that it had provided $9.75 said the strategy is to employ “eco- squeezed as businesses cut bud- CEO of the New York company. “We ing pension funds, endowments and for talent,” says Bill Nguyen, a contributed to this article. partly in response to Russia’s August zakhstan. man for Rusal declined to comment. million of client services and said nomic, consular, and other non-law- gets, banks pull credit lines and con- just got completely blindsided.” invasion of Georgia. Among other Mr. Deripaska didn’t respond to The funds went to an account in that, “consistent with past prac- enforcement means to target [orga- sumers close their wallets. All of this comes as some tech things, the U.S. is stepping up its re- requests for comment about the the name of Brookrange Ltd., a firm tices, such services were for lawful nized crime] figures and organiza- Benchmark Capital, a prominent companies have been struggling to views of Russian investments and of probe, including written questions, based in Gibraltar. A lawyer for the purposes.” Mr. Mirtchev said he tions, freeze or seize their assets, Silicon Valley firm, recently sent a rev up growth and search for hot visa applications by Russian busi- but in the past has denied any asso- firm said it could “neither confirm was contractually barred from dis- and disrupt their ability to exploit letter to its portfolio companies tell- new products and services. While Apple set to release lower-priced laptops nessmen suspected of criminal ties. ciation with criminal activity. nor deny the existence of any busi- cussing the transaction but said U.S. banks, businesses, and strate- ing them that “financings as we companies such as networking gi- The 40-year-old Mr. Deripaska In the money transfer, Moscow’s ness transactions.” that he and his partners “rigor- gic assets.” know it just got a whole lot ant Cisco Systems Inc. produced By Yukari Iwatani Kane pany is widely expected to unveil day, it’s still down 27% since Sept. has been ranked by Forbes as MDM Bank wired the funds through Mr. Deripaska has been working ously abide by all of the laws and An interagency panel called the tougher.” quarterly revenue growth rates And Ben Charny new versions of its MacBook and 25 on worries that slowdowns in the among the world’s 10 richest peo- a unit in Latvia to a Barclays branch with a small group of advisers in regulations of the countries in Committee on Foreign Investment In the letter, Benchmark urged above 30% earlier this decade, that MacBook Pro notebook computers, North American and European econ- ple, with assets of $28 billion. They in New York and then to a Barclays Washington and London who have which we operate.” in the United States, which looks at entrepreneurs to “be calm, but prag- has slowed to 10% to 17% now as the Apple Inc. this week is expected including a model that would be omies are finally beginning to affect include nearly 5% of General Mo- account in London, documents indi- helped him deal with inquiries and Meanwhile, Bush administra- foreign investments for any na- matic” and added that “the rules of company has matured. Even highfli- to unveil new laptop computers—in- priced below $1,000 for the first even Apple. tors Corp. Mr. Deripaska is allied cate. When a Barclays executive lawsuits over his alleged ties to or- tion officials have been growing in- tional-security risk, has informally the game have changed.” ers such as Google are seeing reve- cluding a model that sets a new low time. Though Apple took the word with the Kremlin and has longtime asked about the origin of the funds, ganized crime, according to busi- creasingly concerned about possi- adopted what one official calls a The letter suggested that entre- nue growth tapering off, decelerat- price point for the company—as it Some analysts are expecting the computer out of its name, Macin- ties to Russian Prime Minister he was given letters by a Rusal exec- ness records and interviews with ble infiltration of Western compa- “hard-look doctrine” toward any preneurs should raise new cash ing to 39% in its second quarter sets its sights on one of the fastest- laptops to start at less than $800, tosh computers are still crucial to Vladimir Putin. utive describing the source as a people involved in the work. The ad- nies and financial markets by sus- Russian attempts to invest in criti- sooner than later and added that from 58% a year ago. growing categories in the business. compared with $1,099 now. the company’s business. In the quar- In the past, authorities in the firm called QPB Investment Ltd., ac- visers include Alexander Mirtchev pected organized-crime figures cal American industries. The Trea- they could potentially draw down There are still bright-looking The Cupertino, Calif.-based com- That would bring Apple closer in ter ended in June, computer reve- U.S. have accused Mr. Deripaska of cording to people familiar with the and Thomas Ondeck, who operate a with ties to the Russian govern- sury and State departments and the bank lines now before the financing spots in tech. On Wednesday, Inter- pany has issued invitations to media line with the rest of the industry, nue grew 43% from the previous having ties to organized crime, matter. QPB is registered in Belize, Washington consulting firm called ment, according to administration National Security Council are re- spigots shut. Benchmark didn’t com- national Business Machines Corp. and analysts for an event Tuesday which is aggressively cutting prices. year to $3.6 billion. Notebook sales which he has denied. In 2006, the a nation with strict corporate se- GlobalOptions Management. They officials, lawmakers and law-en- viewing possible economic sanc- ment. preannounced better-than-ex- that it indicated would focus on its If Apple unveils more affordable accounted for 61% of that, growing U.S. Federal Bureau of Investiga- crecy laws, and couldn’t be reached are among the consultants who law- forcement officials. In April, Attor- tions against Russian-backed politi- “It’s like the perfect storm,” says pected quarterly earnings and said portable Macintosh line. The invita- laptops as expected, it could give in- 42% from a year earlier. tion persuaded the State Depart- for comment. yers and government officials say ney General Michael Mukasey, cit- cians and businessmen who operate Andy Morning, chief financial of- it “remained confident” in its full- tion shows a single spotlight on the vestors much needed confidence in Apple’s sales could still be hurt ment to revoke a U.S. visa he had ob- Barclays turned over records of are being investigated by the Jus- ing Russia and Central Asian na- in separatist enclaves of Georgia, ac- ficer of Mattson Technology Inc., a year outlook. company’s logo on a notebook com- the stock, which has recently fallen by the economic slowdown because tained, according to diplomatic and the transfer to British authorities tice Department and Manhattan tions, said that underworld figures’ cording to administration officials. Fremont, Calif., maker of chip-manu- When tech earnings season kicks puter. to levels few would have expected it it relies on the U.S. and Western Eu- law-enforcement officials. and to U.S. state and federal authori- D.A. for possible money launder- growing clout in energy and strate- —Alan Cullison facturing equipment. off this week with Intel Corp.’s re- An Apple spokesman declined to to reach just a few months ago. rope—some of the most troubled The wire transfer being investi- ties in response to subpoenas, law- ing. A lawyer for their firm said gic-materials markets “may have a contributed to this article. Last month, Mattson announced port, many tech companies’ quar- provide further details, but the com- While the stock surged 9.1% on Fri- markets—for the bulk of its sales. 28 MONDAY, OCTOBER 13, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. MONDAY, OCTOBER 13, 2008 5 GLOBAL MARKETS LINEUP THE FINANCIAL CRISIS

Commodities Prices of futures contracts with the most open interest Currencies London close on Oct. 10 EXCHANGE LEGEND: CBOT: Chicago Board of Trade; CME: Chicago Mercantile Exchange; ICE-US: ICE Futures U.S.MDEX: Bursa Malaysia Per In Per In Putin unveils 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 NYMEX: New York Mercantile Exchange;ICE-EU: ICE Futures Europe ONE-DAY CHANGE Contract Contract Argentina peso-a 4.4227 0.2261 3.2713 0.3057 Euro zone euro 1 1 0.7396 1.3520 Commodity Exchange Last price Net Percentage high low Brazil real 3.0410 0.3288 2.2493 0.4446 1-mo. forward 0.9986 1.0014 0.7386 1.3540 effort to rev up Spain’s debtors feel the shame Corn (cents/bu.) CBOT 408.25 –30.00 –6.85% 799.25 258.50 Canada dollar 1.6004 0.6249 1.1837 0.8448 3-mos. forward 0.9978 1.0022 0.7380 1.3549 quency public,” says Juan Carlos that it is hiring 150 new collectors in him in costume as far as his son’s Soybeans (cents/bu.) CBOT 910.00 –70.00 –7.14 1,636.75 622.00 1-mo. forward 1.5990 0.6254 1.1827 0.8455 6-mos. forward 0.9982 1.0018 0.7383 1.3545 market bailout 3-mos. forward 1.5938 0.6274 1.1789 0.8483 Czech Rep. koruna-b 24.873 0.0402 18.397 0.0544 Showy collectors Granda, a director at El Cobrador its 10 offices in Spain and Portugal. school. (Privacy laws protect the Wheat (cents/bu.) CBOT 563.50 –41.25 –6.82 1,284.25 430.00 6-mos. forward 1.5907 0.6286 1.1766 0.8499 Denmark krone 7.4536 0.1342 5.5130 0.1814 By Alan Cullison del Frac, which has been in business Hidden away in a rundown cor- identity of the restaurateur.) “They Live cattle (cents/lb.) CME 91.300 –3.000 –3.18 115.325 91.300 Chile peso 855.14 0.001169 632.50 0.001581 Hungary forint 260.02 0.003846 192.33 0.005200 rely on humiliation; for two decades. “We have our pro- ner of Madrid’s financial district, its invaded the son’s right to privacy Cocoa ($/ton) ICE-US 2,244 –86 –3.69 3,273 1,845 Colombia peso 3125.08 0.0003200 2311.45 0.0004326 Norway krone 8.4454 0.1184 6.2466 0.1601 MOSCOW—Russia scrambled to fessional uniform like anyone else,” head office is a hive of activity. Banks and humiliated him in front of his Coffee (cents/lb.) ICE-US 115.35 0.70 0.61% 178.90 109.35 Ecuador US dollar-f 1.3520 0.7396 1 1 Poland zloty 3.5813 0.2792 2.6489 0.3775 speed up its $200 billion bailout of a few choice calls he adds. of telephone operators take calls professors and colleagues,” Mr. Ca- Sugar (cents/lb.) ICE-US 11.23 –0.67 –5.63 15.85 9.89 Mexico peso-a 17.8363 0.0561 13.1925 0.0758 Russia ruble-d 35.452 0.02821 26.222 0.03814 financial markets Friday, as inves- Other companies in the fast- from clients. The decor includes macho says. Cotton (cents/lb.) ICE-US 49.44 –3.00 –5.72 98.45 49.44 Peru sol 4.1966 0.2383 3.1040 0.3222 Slovak Rep. koruna 30.6769 0.03260 22.6900 0.04407 tors grew increasingly doubtful of By Thomas Catan growing field include The Scottish hunting trophies hanging on the Mr. Granda of El Frac says he Crude palm oil (ringgit/ton) MDEX 1,773.00 –117 –6.19 3,665 1,725 Uruguay peso-e 29.460 0.0339 21.790 0.0459 Sweden krona 9.6317 0.1038 7.1241 0.1404 the Kremlin’s commitment to revers- Collector, which threatens to send a walls—stuffed heads of antelopes, li- doesn’t recall the case. He is, how- Cocoa (pounds/ton) LIFFE 1,362 –33 –2.37 1,706 979 U.S. dollar 1.3520 0.7396 1 1 Switzerland franc 1.5165 0.6594 1.1217 0.8915 ing the rout. MADRID—Stepping out of a black- bagpipe player in highland dress to ons and grimacing hyenas. “Bad debt- ever, familiar with Mr. Camacho. Robusta coffee ($/ton) LIFFE 1,751 –35 –1.96 2,747 1,642 Venezuela bolivar 2.9031 0.344453 2.1473 0.465701 1-mo. forward 1.5125 0.6612 1.1187 0.8939 Russian shares, which have and-white car, Manuel Llan slips on a debtors’ homes, and the Monastery ors,” Mr. Granda jokes. “We fired him,” Mr. Granda says. Copper (cents/lb.) COMEX 214.45 –26.15 –10.87 404.50 205.00 ASIA-PACIFIC 3-mos. forward 1.5082 0.6631 1.1155 0.8965 fallen about 40% since the govern- top hat, bow tie and a mournful ex- of Collection, whose employees ar- He recounts one of his proudest Mr. Camacho says he wasn’t Gold ($/troy oz.) COMEX 859.00 –27.50 –3.10 1,048.00 437.00 Australia dollar 2.0649 0.4843 1.5273 0.6548 6-mos. forward 1.5050 0.6644 1.1132 0.8983 ment came out with its bailout last pression. Before knocking on the rive decked out as Franciscan friars. successes. El Frac, as the company fired, but quit. Silver (cents/troy oz.) COMEX 1060.00 –127.50 –10.74 2,155.00 601.00 China yuan 9.2436 0.1082 6.8370 0.1463 Turkey lira 1.9263 0.5191 1.4248 0.7019 month, took little solace from the door, he picks up his briefcase and Others dress as bullfighters, Zorro is known, was pursuing a wealthy Spain’s Association of Collection Aluminum ($/ton) LME 2,213.00 –85.00 –3.70 3,340.00 2,213.00 Hong Kong dollar 10.4892 0.0953 7.7583 0.1289 U.K. pound 0.7930 1.2611 0.5865 1.7049 latest announcement, delivered Fri- pauses for effect, making sure the or the Pink Panther. Madrid couple who hadn’t paid the Agencies doesn’t admit the shaming Tin ($/ton) LME 13,600.00 –1250.00 –8.42 25,450 13,600 India rupee 65.504 0.0153 48.450 0.0206 1-mo. forward 0.7930 1.2611 0.5865 1.7050 day by Prime Minister Vladimir Pu- neighbors can read the writing. “In times of crisis, companies bill for a lavish wedding reception debt collectors into its ranks, accord- Indonesia Copper ($/ton) LME 4,875.00 –465.00 –8.71 8,811.00 4,875.00 rupiah 13331 0.0000750 9860 0.0001014 3-mos. forward 0.7932 1.2608 0.5867 1.7046 tin. Trading was suspended in Rus- El Cobrador del Frac, it says on like ours sprout like mushrooms af- attended by hundreds. So one of Mr. ing to José María Torres, the associ- Japan yen 135.00 0.007408 99.85 0.010015 6-mos. forward 0.7963 1.2557 0.5890 1.6978 Lead ($/ton) LME 1,470.00 –140.00 –8.70 3,875.00 1,470.00 sia on Thursday and Friday, but ma- the side of his case, in large capital ter the rain,” Mr. Granda says. Granda’s men obtained the guest ation’s general secretary. “They are 1-mo. forward 134.40 0.007441 99.41 0.010060 MIDDLE EAST/AFRICA Zinc ($/ton) LME 1,372.00 –113.00 –7.61 3,169.50 1,372.00 jor issues traded in London on Fri- letters: “The Debt Collector in Top Not all cases call for costume. list. “We called two or three people not viewed positively,” he says. 3-mos. forward 133.34 0.007499 98.63 0.010139 Bahrain dinar 0.5108 1.9578 0.3778 2.6469 Nickel ($/ton) LME 12,130 –930 –7.12 34,050 12,130 day ended down more than 10%. Hat and Tails.” Sometimes, instead, the collector on the list and said: ‘We’re charging U.S. law prohibits harassing al- 6-mos. forward 132.53 0.007546 98.02 0.010202 Egypt pound-a 7.4272 0.1346 5.4935 0.1820 Crude oil ($/bbl.) NYMEX 77.99 –8.63 –9.96 148.60 19.75 simply phones the neighbors. “I you Œ500 for the chicken you ate, for leged debtors with tactics such as Malaysia ringgit-c 4.7489 0.2106 3.5125 0.2847 Israel shekel 4.8706 0.2053 3.6025 0.2776 While Russia has no shortage of The neighbors need no explana- Heating oil ($/gal.) NYMEX 2.2100 –0.2086 –8.62 4.2500 1.9895 New Zealand dollar 2.2788 0.4388 1.6855 0.5933 Jordan dinar 0.9569 1.0451 0.7078 1.4129 cash to spend on a package, stocks tion. Mr. Llan is making his latest want the people around you to say: your part of the wedding cake,’ ” Mr. telling friends or neighbors about RBOB gasoline ($/gal.) NYMEX 1.8070 –0.2203 –10.87 3.5475 1.8240 Pakistan rupee 106.470 0.0094 78.750 0.0127 Kuwait dinar 0.3622 2.7609 0.2679 3.7327 have been pummeled by fears that its call on Spain’s legion of delinquent ‘The debt collector came looking for Granda recalls. The debtors paid their bad debts. Similarly, in the Natural gas ($/mmBtu) NYMEX 7.189 –0.269 –3.61 14.546 0.117 Philippines peso 64.572 0.0155 47.760 0.0209 Lebanon pound 2030.70 0.0004924 1502.00 0.0006658 bureaucracy is too creaky to disperse debtors. you.’ It hurts your public image,” up, he says. U.K., humiliating debtors until they Brent crude ($/bbl.) ICE-EU 83.96 unch. unch. 150.12 54.51 Singapore dollar 2.0047 0.4988 1.4828 0.6744 Saudi Arabia riyal 5.0703 0.1972 3.7503 0.2666 the aid, and that the Kremlin may take “There’s been a huge growth in Mr. Granda says. Spanish debt collectors insist pay up would be considered unfair. Gas oil ($/ton) ICE-EU 723.75 –58.25 –7.45 1,357.50 706.75 South Korea won 1767.88 0.0005657 1307.60 0.0007648 South Africa rand 12.6777 0.0789 9.3770 0.1066 advantage of the crisis to buy up this business,” Mr. Llan, a former taxi Until it soured this year, Spain’s they provide a vital service for small There are worse tactics out driver, says as he demonstrates the economy was on a 14-year tear—the businesses, given that it can take there, says a spokesman for Citizens Source: Thomson Reuters; WSJ Market Data Group Taiwan dollar 43.866 0.02280 32.445 0.03082 United Arab dirham 4.9661 0.2014 3.6732 0.2722 prime assets from cash-strapped com- WSJ.com Thailand baht 46.482 0.02151 34.380 0.02909 SDR -f 0.8859 1.1288 0.6553 1.5261 panies and oligarchs on the cheap. approach he takes on house visits. single largest generator of jobs years for a claim to wind its way Advice Bureau, a U.K. consumer-ad- Follow the markets throughout the day, with updated stock quotes, news and commentary at Mr. Putin said the government “People just can’t pay their debts.” among the 15 countries that use the through the courts. vocacy group. “We’ve also heard of 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- will begin buying Russian stocks this As Spain’s once-thriving econ- euro as currency. House prices tri- Not everyone is convinced. One debt collectors using live bears in To sign up, go to WSJ.com/Online Today national Monetary Fund ; based on exchange rates for U.S., British and Japanese currencies. week, and will spend nearly $7 billion omy slides toward recession, debt col- pled in a decade as Spaniards binged group of former El Frac employees Russia,” she says. Note: Based on trading among banks in amounts of $1 million and more, as quoted by Thomson Reuters. before the end of the year. The gov- lectors say they are doing a roaring on the wave of easy borrowing that has set up a firm, The Debtor’s De- Mr. Llan says his method ernment, he said, will spend the same trade. The country’s creaking legal followed the country’s adoption of fender, in opposition to collectors. Col- amounts to reminding people po- amount in 2009, and the purchases system is overwhelmed with cases, the euro in 2002. lectors are bullies, says Pablo Cama- litely it’s time to cough up the cash. Major stock market indexes Stock indexes from around the world, grouped by region. Shown in local-currency terms. will be placed by the state-controlled so many companies say the only way Spaniards now find themselves cho, its manager. “They overstep the Their response isn’t always equally Development Bank, known in Rus- to get people to pay is to shame them squeezed by rising inflation and line, and that’s where we come in.” polite. “Yes, I have been threatened,” Price-to- PREVIOUS SESSION PERFORMANCE Price-to- PREVIOUS SESSION PERFORMANCE sian as Vneshekonombank. in front of the neighbors. mortgage rates. Bank-loan defaults He says his group has been able he says. “You know, ‘Get out of here 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. “Development Bank will start Humiliation is a powerful motiva- jumped by a third in the month of to win several court judgments or I’ll break your face,’ that kind of 11 EUROPE DJ Stoxx 600 205.13 –16.65 –7.51% –43.7% –47.5% … Russia RTSI 844.75 Closed –63.1% –60.9% placing funds in Russian shares, not tor in a country where people’s honor July, hitting a 10-year high. Unem- against collection agencies, includ- thing.” He takes off his top hat, wipes 11 DJ Stoxx 50 2094.50 –197.27 –8.61 –43.1% –46.7% 9 Spain IBEX 35 8997.7 –905.2 –9.14% –40.7% –41.0% foreign shares, next week,” Mr. Putin and public image are paramount con- ployment is at 11.3%, the highest in ing Œ6,000 several years ago against his brow with a handkerchief and pre- 10 Euro Zone DJ Euro Stoxx 224.39 –17.82 –7.36 –45.9% –48.1% 15 Sweden OMX Stockholm 196.74 –11.81 –5.66 –44.1% –51.5% said. cerns. El Cobrador del Frac claims a the European Union. El Cobrador del Frac after it was pares for the next house call. El Cobrador del Frac says its busi- deemed to have harassed a restaura- —Dionne Searcey 9 DJ Euro Stoxx 50 2421.87 –207.17 –7.88 –45.0% –45.9% 11 Switzerland SMI 5347.22 –451.62 –7.79 –37.0% –41.9% The Kremlin-controlled parlia- success rate of more than 60%. ment, meanwhile, moved to approve “The idea is to make the delin- ness has risen by a third this year and teur who owed money, shadowing contributed to this article. 6 Austria ATX 2002.05 –159.31 –7.37 –55.6% –58.8% … Turkey ISE National 100 28495.93 –2382.78 –7.72 –48.7% –50.9% elements of the market-rescue plan 7 Belgium Bel-20 2123.44 –117.44 –5.24 –48.6% –53.1% 8 U.K. FTSE 100 3932.06 –381.74 –8.85 –39.1% –41.6% that will move money into the … Czech Republic PX 888.5 –156.1 –14.94 –51.0% –53.2% 9 ASIA-PACIFIC DJ Asia-Pacific 88.88 –6.27 –6.59 –43.8% –47.4% stricken banking sector. The lower 10 Denmark OMX Copenhagen 256.73 –17.38 –6.34 –42.8% –47.4% … Australia SPX/ASX 200 3960.7 –360.2 –8.34 –37.5% –41.3% house approved $50 billion in govern- 8 Finland OMX Helsinki 5799.43 –252.63 –4.17 –50.0% –52.5% … China CBN 600 15209.21 –746.06 –4.68 –63.3% –65.2% ment refinancing to Russian compa- We get the global perils 8 France CAC-40 3176.49 –266.21 –7.73 –43.4% –45.6% 10 Hong Kong Hang Seng 14796.87 –1146.37 –7.19 –46.8% –48.7% nies and a $36 billion injection of 10 Germany DAX 4544.31 –342.69 –7.01 –43.7% –43.5% 13 India Sensex 10527.85 –800.51 –7.07 –48.1% –42.8% long-term loans into the banking sec- … Hungary BUX 14577.46 –437.06 –2.91 –44.4% –48.4% … Japan Nikkei Stock Average 8276.43 –881.06 –9.62 –45.9% –52.2% tor. The upper house of parliament, without global benefits 2 Ireland ISEQ 2871.25 –166.54 –5.48 –58.6% –64.2% … Singapore Straits Times 1948.33 –154.38 –7.34 –43.8% –48.9% the Federation Council, is holding an 7 Italy S&P/MIB 20309 –1562 –7.14 –47.3% –50.6% 11 South Korea Kospi 1241.47 –53.42 –4.13 –34.6% –38.7% emergency session Monday in which By Gerald F. Seib and developing nations or the Inter- 5 Netherlands AEX 258.05 –23.92 –8.48 –50.0% –53.8% 10 AMERICAS DJ Americas 226.56 –4.20 –1.82 –39.9% –43.3% it is expected to rush the measure to national Monetary Fund—is well 6 Norway All-Shares 287.74 –22.99 –7.40 –49.5% –50.8% … Brazil Bovespa 35609.54 –1470.76 –3.97 –44.3% –43.0% President Dmitry Medvedev for ap- As President George W. Bush sat suited to coordinate a response to a 17 Poland WIG 31041.42 –2682.61 –7.95 –44.2% –51.4% 10 Mexico IPC 19905.27 –404.93 –1.99 –32.6% –38.7% proval. down Saturday with foreign finance global crisis. With some adjust- 9 Portugal PSI 20 6281.03 –396.88 –5.94 –51.8% –51.0% While tightening credit hasn’t yet ministers to talk about the crisis in ments, perhaps, they might be. had as wide an effect in Russia as in global markets, the nagging ques- At one level, there has been good *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 Western economies, softening com- tion was: If we now live in a truly glo- international coordination, but that Note: Americas index data are as of 5:00 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. modity prices are beginning to hit bal economy, why isn’t there a bet- has been informal: Central bankers some industries. Steelmaker Sever- ter system for responding to a glo- of the world have worked well to- Dow Jones and Dow Jones Stoxx Indexes MSCI indexes stal said Friday it is cutting produc- bal economic shock? gether at crucial points, but on a per- tion by 25% in Russia and by 30% in A coordinated response is com- sonal level. “They get together bet- Developed and emerging-market regional and country indexes Price-to- Price-to- the U.S. It follows moves by other ing together, ter with each other than they do Dividendearnings PERFORMANCE (euros) PERFORMANCE (U.S. dollars) Dividendearnings PERFORMANCE (euros) PERFORMANCE (U.S. dollars) from MSCI Barra as of Oct. 9, 2008 with their own governments in Press Associated 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. metal companies to trim production, CAPITAL spurred on in par- 3.77% 9 World -a % % 170.72 –4.72%–46.3% 6.03% 11 U.S. Select Dividend -b % % 597.19 4.39%–35.5% Price-to- LOCAL-CURRENCY delay projects and cut back working ticular by growing many cases,” joked C. Fred Berg- President Bush met with G7 finance ministers, from left, Eurogroup's Jean-Claude Dividend earnings PERFORMANCE 3.75% 9 Stoxx Global 1800 166.60 –4.07% –43.0% 168.02 –5.08%–45.7% 5.24% 11 Infrastructure 1176.80 –5.38% –38.5% 1515.34 –6.37%–41.3% yield ratio Morgan Stanley Index Last Daily YTD 52-wk. hours. JOURNAL cooperation be- sten, director of the Peterson Insti- Juncker, Japan's Shoichi Nakagawa and U.S. Treasury Secretary Henry Paulson. 3.77% 11 Stoxx 600 205.10 –7.51% –47.5% 206.91 –8.48%–50.0% 2.64% 8 Luxury 617.40 –0.15% –50.6% 706.95 –1.20%–53.0% 3.20% 12 ALL COUNTRY (AC) WORLD* 238.14 –3.92%–40.9% –42.2% Peter Halloran, president of the tween the U.S and tute for International Economics. 3.88% 10 Stoxx Large 200 221.70 –7.85% –47.1% 222.45 –8.82%–49.5% 2.29% 9 BRIC 50 257.00 –5.25% –53.7% 330.97 –6.24%–55.8% 3.20% 13 World (Developed Markets) 958.04 –4.55%–39.7% –41.4% Moscow-based Pharos Financial Britain. “We’re in this together, and Among political leaders, the pic- 3.09% 11 Stoxx Mid 200 180.10 –5.91% –49.2% 180.70 –6.90%–51.6% 6.45% 4 Africa 50 713.40 –2.14% –34.9% 611.57 –3.17%–38.0% 2.90% 14 World ex-EMU 111.43 –5.03%–38.4% –40.7% Group, said the market’s tepid reac- we’ll come through this together,” ture has been quite different. The oped countries to economic prob- kets,” he said. 3.47% 10 Stoxx Small 200 114.70 –5.62% –49.9% 114.97 –6.61%–52.2% 7.68% 7 GCC 40 776.10 0.81% –20.9% 665.26 –0.25%–24.6% 3.00% 14 World ex-UK 949.73 –4.85%–39.4% –41.1% tion to Mr. Putin’s reassurances President Bush said Friday at the last few days have been marked lems. But these days, it is more adept The G-7,the organization of seven 3.79% 10 Euro Stoxx 224.40 –7.36% –48.1% 226.34 –8.33%–50.5% 4.50% 8 Sustainability 681.20 –5.39% –44.0% 776.82 –6.38%–46.6% 4.10% 10 EAFE 1,321.18 –1.09%–41.4% –42.6% demonstrates the depth of worries White House. more by sniping over the cause of at telling the developing world what leading industrialized nations, was the market collapse than by any it should do than persuading devel- set up so leaders of the world’s rich- 3.87% 10 Euro Stoxx Large 200 241.40 –7.64% –48.0% 241.99 –8.61%–50.5% 3.06% 10 Islamic Market -a % % 1418.57 –4.89%–43.0% 3.20% 10 Emerging Markets (EM) 618.90 2.16%–50.3% –48.6% over Russia’s economic dilemmas, But there was little cooperation joint response. oped nations what they should do to- est nations could contemplate eco- 3.31% 11 Euro Stoxx Mid 200 199.90 –6.20% –48.3% 200.34 –7.18%–50.8% 3.43% 9 Islamic Market 100 1390.00 –3.81% –37.1% 1606.60 –4.82%–40.0% 4.70% 9 EUROPE 77.51 –2.08%–39.2% –41.3% as well as the government’s commit- in constructing regulatory systems Ireland stunned and angered gether. The U.S., in particular, has nomic development. But it’s more a 3.55% 10 Euro Stoxx Small 200 124.00 –5.51% –48.7% 124.20 –6.50%–51.1% 6.87% 5 Islamic Turkey -c 1890.10 –5.12% –38.2% % % 4.90% 9 EMU 152.26 –1.98%–45.6% –44.6% ment to solving them. and monitoring risks before crisis struck—and a slow, joint reaction, other European leaders by moving grown more accustomed to preach- discussion group than a cockpit in 9.20% 7 Stoxx Select Dividend 30 1337.90 –7.31% –58.6% 1546.35 –8.28%–60.5% 3.11% 10 Wilshire 5000 % % 9120.78 –0.73%–42.2% 4.50% 10 Europe ex-UK 84.06 –2.20%–39.7% –41.2% “Either the market doesn’t believe marred by trans-Atlantic bickering, out on its own to guarantee a wide ing to the IMF than listening to the which real-time decisions can be 6.29% 7 Euro Stoxx Select Div 30 1476.50 –8.17% –56.7% 1713.24 –9.14%–58.7% % DJ-AIG Commodity 144.90 –5.21% –15.7% 142.16 –6.20%–19.7% 6.30% 8 Europe Value 88.28 –1.80%–41.8% –45.0% what the government is saying, or there are a lot of forced sellers out after it hit. swath of bad debts at home. But IMF. made, and it hasn’t been convened in *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 5 p.m. ET. Source: Dow Jones Indexes 3.10% 12 Europe Growth 66.21 –2.36%–36.6% –37.6% there that are going to keep on sell- Rep. Rahm Emanuel, a Demo- when the European Union got to- The IMF and World Bank, in fact, the current crisis. 4.00% 10 Europe Small Cap 124.22 0.03%–42.3% –46.6% ing,” Mr. Halloran said. cratic leader in the House and a gether to try to come up with a uni- happened to be holding regularly The makeup of the G-7 may be an 3.00% 7 EM Europe 215.18 5.66%–55.3% –51.1% Cross rates U.S.-dollar and euro foreign-exchange rates in global trading The money promised for stocks— former investment banker who fied response, the effort didn’t get scheduled meetings in Washington anachronism. Today, Mr. Bergsten 5.20% 8 UK 1,283.57 –1.27%–33.2% –33.6% about 10% of the free-float on the warned early of impending doom in off the ground. over the weekend. But the gather- notes, there are six nations that be- 4.40% 10 Nordic Countries 113.68 0.51%–44.9% –49.5% USD GBP CHF SEK RUB NOK JPY ILS EUR DKK CDN AUD Russian market—“should have sent the markets, says the president More broadly, it’s become obvi- ings have shown in the past how long to what he calls “the trillion- 2.10% 6 Russia 535.19 11.36%–64.4% –58.4% Australia 1.5273 2.6040 1.3616 0.2144 0.0582 0.2445 0.0153 0.4240 2.0649 0.2770 1.2903 ... stocks up about 20%,” he said. In- should have done more on the inter- ous the international institutions these institutions are as much ob- dollar club”—countries with an an- Canada 1.1837 2.0181 1.0553 0.1662 0.0451 0.1895 0.0119 0.3286 1.6004 0.2147 ... 0.7750 4.00% 12 South Africa 548.48 2.20%–23.1% –23.2% stead there was a hiccup of inves- national front. “The one time you that exist aren’t set up to coordinate servers as participants in response nual GDP topping a trillion dollars— Denmark 5.5130 9.3994 4.9149 0.7739 0.2102 0.8826 0.0552 1.5303 7.4536 ... 4.6574 3.6096 4.00% 11 AC ASIA PACIFIC EX-JAPAN 274.23 2.18%–48.2% –48.7% tors covering short bets, then more needed a coalition of the willing and responses to a markets crisis. The to economic crises. that aren’t included in the G-7: In- Euro 0.7396 1.2611 0.6594 0.1038 0.0282 0.1184 0.0074 0.2053 ... 0.1342 0.6249 0.4843 2.20% 14 Japan 567.68 0.63%–39.6% –45.0% selling. shock and awe, George Bush was leading trans-Atlantic organiza- Even Dominique Strauss-Kahn, dia, China, Russia, Brazil, South Ko- Israel 3.6025 6.1421 3.2116 0.5057 0.1374 0.5767 0.0361 ... 4.8706 0.6535 3.0434 2.3587 2.80% 11 China 39.45 3.48%–53.8% –55.4% Japan 99.8500 170.2393 89.0167 14.0159 3.8079 15.9847 ... 27.7169 134.9972 18.1117 84.3541 65.3768 The government has not said AWOL,” he says. tion, the North Atlantic Treaty Orga- managing director of the IMF, rea and Mexico. 1.30% 14 India 442.95 0.00%–48.2% –36.9% Norway 6.2466 10.6501 5.5689 0.8768 0.2382 ... 0.0626 1.7340 8.4454 1.1331 5.2772 4.0900 which stocks it will buy in the Rus- That’s a partisan response, of nization, is a military institution, seemed to say last week that some What’s needed is either a reform 2.20% 10 Korea 361.61 0.91%–30.0% –31.8% Russia 26.2220 44.7072 23.3770 3.6808 ... 4.1978 0.2626 7.2788 35.4521 4.7564 22.1526 17.1689 sian market, but analysts expect course, and the problem runs not an economic one. new system is needed to deal with of one of the existing institu- 6.50% 10 Taiwan 198.12 –1.25%–40.7% –45.6% Sweden 7.1241 12.1461 6.3511 ... 0.2717 1.1405 0.0713 1.9775 9.6317 1.2922 6.0185 4.6645 purchases to focus on big state-con- deeper than that. The crisis is show- The International Monetary Fund the global nature of the financial tions—or the creation of a new one Switzerland 1.1217 1.9124 ... 0.1575 0.0428 0.1796 0.0112 0.3114 1.5165 0.2035 0.9476 0.7344 2.30% 18 US BROAD MARKET 991.34 –7.54%–37.9% –40.2% trolled firms such as Sberbank and ing that none of the existing politi- brings together Western financial ex- markets. “We have to draw lessons to help political leaders do quick U.K. 0.5865 ... 0.5229 0.0823 0.0224 0.0939 0.0059 0.1628 0.7930 0.1064 0.4955 0.3840 1.70% 36 US Small Cap 1,272.84 –7.95%–35.9% –39.3% the oil company Rosneft, in which cal or economic institutions—the perts, and it was formed in the wake on the architecture, financial archi- analysis and make instant decisions U.S. ... 1.7049 0.8915 0.1404 0.0381 0.1601 0.0100 0.2776 1.3520 0.1814 0.8448 0.6547 2.70% 11 EM LATIN AMERICA 2,175.12 2.31%–50.6% –47.5% small Russian investors own Group of Seven industrialized coun- of the Great Depression precisely to tecture, which clearly failed to to contain and reassure global mar- Source: Thomson Reuters via WSJ Market Data Group *Twenty-three developed and 26 emerging markets Source: MSCI Barra shares. tries, the Group of 20 industrialized coordinate reactions by the devel- adapt to globalized financial mar- kets. 6 MONDAY, OCTOBER 13, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. MONDAY, OCTOBER 13, 2008 27 CORPORATENEWS BLUE CHIPS & BONDS Below, a look at the Dow Jones Stoxx 50, the Dow Jones Industrial AverageP/E: nil Major players & benchmarks biggest and best known companies in Europe, TELECOMMUNICATIONS PHARMACEUTICALS FASHION including the U.K. LAST: 8451.19 t 128.00, or 1.49% 7 7 7 Dow Jones Stoxx 50: Friday’s best and worst… YEAR TO DATE: t 4,813.63, or 36.3% Deutsche Telekom vows AstraZeneca’s Seroquel Unprofitable Hardy Amies OVER 52 WEEKS t 5,641.89, or 40.0% Market value, Previous 50–day in billions close, in STOCK PERFORMANCE moving average to boost data protections cleared for new use in U.S. appoints administrators Company Country Industry of US$ local currency Previous session 52-week Three-year t 12000 L.M. Ericsson Tel B Sweden Telecomms Equipment $18.8 45.00 –0.22% –66.1% –67.3% EUTSCHE Tele- STRAZENECA RITISH FASHION Assicurazioni Gen Italy Full Line Insurance 39.3 20.65 –2.04 –34.2 –11.3 kom AG pledged PLC has re- house Hardy Roche Hldg Part. Cert. Switzerland Pharma 92.7 148.20 –4.02 –31.8 –19.5 11100 to boost its ceived regula- Amies PLC—best D A B Nokia Finland Telecomms Equipment 59.8 11.65 –4.90 –55.6 –16.8 data-protection efforts tory approval to mar- known for creating after admitting last ket antipsychotic Sero- dresses worn by Intesa Sanpaolo Italy Banks 46.4 2.90 –4.92 –47.3 –25.2 10200 week that personal in- quel XR in the U.S. as Queen Elizabeth II— formation of around a treatment for bipo- said Friday it has ap- Royal Bk of Scot U.K. Banks $20.2 0.72 –25.31% –84.3 –83.8 High 9300 17 million of its cell- lar disorder, the Anglo- pointed administra- Credit Suisse Grp Switzerland Banks 34.6 34.26 –16.19 –58.0 –38.5 Close

Associated Press Associated phone customers had Swedish drug maker

Associated Press Associated tors. AstraZeneca Deutsche Bk Germany Banks 22.4 31.23 –16.08 –66.4 –59.2 Low been stolen in 2006. said Friday. The company, Barclays U.K. Banks 28.8 2.08 –14.17 –67.1 –61.4 8400 Germany’s biggest phone company said it would Seroquel XR, already marketed as a schizophre- founded in 1946 by designer Hardy Amies, has tried create a new data-privacy department and post on- nia treatment, is the slow-release version of Sero- for weeks to find funding, with its board negotiat- UniCredit Italy Banks 41.8 2.32 –13.11 –62.5 –50.2 line information on data-protection incidents under quel, which was launched in 1997 and has become ing with several parties. It goes into administration 7500 investigation. It will also restrict access by its staff one of AstraZeneca’s best-selling products, with after years of financial losses. Hardy Amies had ...And the rest of Europe’s blue chips 11 18 25 1 8 15 22 29 5 12 19 26 3 10 and sales partners to company computer systems. sales of $4.03 billion last year. been propped up by Arev Brands Ltd., which owns a Aug. Sept. Oct. Latest, Latest, “We want to provide maximum security for the With Seroquel losing patent protection in Septem- 49% stake in the fashion house. But in September Market value, in local STOCK PERFORMANCE Market value, in local STOCK PERFORMANCE data of our customers” and be “at least one step ber 2011, the London-based pharmaceutical company Arev had said it would cut off the cash. Sir Hardy 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 ahead” in combating data theft, CEO René Obermann hopes to switch patients to its extended-release once- retired in 2002 and died a year later. Diageo 37.9 7.94 –5.25% –28.1% –4.3% Sanofi-Aventis S.A. 67.3 37.92 –8.25% –39.5% –44.8% said in a written statement. —Associated Press daily version of the drug. —Elena Berton —Associated Press U.K. (Distillers & Vintners) France (Pharmaceuticals) DJIA component stocks SAP 42.0 24.97 –5.47 –36.8 –30.0 Daimler 29.4 22.57 –8.29 –69.9 –46.3 Germany (Software) Germany (Automobiles) Volume, CHANGE Stock Symbol in millions Latest Points Percentage Koninklijke Philips Elec 22.3 15.78 –5.65 –50.9 –25.7 Royal Dutch Shll 79.4 16.57 –8.98 –43.6 –34.4 Netherlands (Consumer Electronics) U.K. (Integrated Oil & Gas) AT&T T 70.80 $22.42 –0.58 –2.52% Nestle S.A. 134.6 39.46 –6.67 –22.9 5.2 Telefonica S.A. 87.6 13.79 –9.10 –36.0 1.1 Alcoa AA 42.60 11.25 –1.21 –9.71% Switzerland (Food Products) Spain (Fixed Line Telecommunications) AmExpress AXP 42.00 23.15 –0.85 –3.54% Astrazeneca 51.3 20.75 –6.74 –19.6 –22.9 Allianz SE 43.3 70.95 –9.21 –56.3 –38.8 BankAm BAC 198.30 20.87 1.24 6.32% U.K. (Pharmaceuticals) Germany (Full Line Insurance) Boeing BA 18.70 41.80 –2.61 –5.88% Rusal pushing France Telecom 59.8 16.94 –7.18 –29.3 –28.3 Tesco 44.5 3.33 –9.25 –30.0 7.5 France (Fixed Line Telecomms) U.K. (Food Retailers & Wholesalers) Caterpillar CAT 17.70 43.13 –1.67 –3.73% ABB 32.7 15.81 –7.27 –51.0 72.5 Novartis 113.3 48.10 –9.42 –24.2 –27.1 Chevron CVX 43.70 57.83 –6.17 –9.64% Ad firms, already lean, cut jobs to revamp board Switzerland (Industrial Machinery) Switzerland (Pharmaceuticals) Citigroup C 238.40 14.11 1.18 9.13% Unilever 38.4 16.59 –7.29 –25.8 –15.6 British Amer Tob 50.0 14.50 –9.94 –17.1 24.9 CocaCola KO 33.80 41.50 –1.80 –4.16% Netherlands (Food Products) U.K. (Tobacco) turing the agency, bringing its re- outlook for 2009 ad dollars, with roll by about 10 employees, and Disney DIS 35.10 23.04 –0.76 –3.19% at Norilsk Nickel ENI 74.4 13.76 –7.34 –48.0 –38.5 BASF 32.6 25.55 –10.13 –46.6 –16.8 Economic turmoil sources in line with current demands some predicting flat growth from Wieden + Kennedy’s hometown of- Italy (Integrated Oil & Gas) Germany (Commodity Chemicals) DuPont DD 18.80 33.40 –0.36 –1.07% of our clients and our business.” this year, and others predicting a de- fice in Portland, Ore., laid off six By Jacob Gronholt-Pedersen Anglo Amer 32.5 14.21 –7.37 –58.6 –10.8 E.ON 68.4 25.32 –10.37 –40.6 5.1 ExxonMobil XOM 99.10 62.36 –5.64 –8.29% steps up fears clients The ad industry frequently reacts cline of 1%. Late last week, John Jane- staffers. Both cuts were related to And Alexander Kolyandr U.K. (General Mining) Germany (Multiutilities) GenElec GE 248.50 21.50 2.49 13.10% to downturns by paring jobs. “Peo- dis, an analyst at Wachovia, lowered client departures. GDF Suez 71.9 24.30 –7.45 –35.8 –7.2 BNP Paribas S.A. 73.7 59.87 –10.50 –25.1 –5.9 GenMotor GM 77.90 4.89 0.13 2.73% France (Multiutilities) France (Banks) will reduce spending ple are the biggest cost in the adver- his forecast, saying he now expects Still, some ad executives and re- Russian aluminum producer HewlettPk HPQ 45.30 37.00 –1.50 –3.90% Siemens 57.8 46.80 –7.60 –52.2 –25.9 Iberdrola S.A. 34.8 5.16 –10.57 –52.1 –8.9 HomeDpt HD 46.60 19.75 –0.18 –0.90% tising business, and there are not a ad spending to fall 0.8% next year. He cruiters say they expect the pace of United Co. Rusal requested an ex- Germany (Electronic Equipment) Spain (Conventional Electricity) Intel INTC 157.50 15.19 –0.41 –2.63% By Suzanne Vranica lot of other things to cut,” says Ann- cited “continued deterioration in the layoffs to be more restrained than it traordinarygeneralmeetingofshare- Total S.A. 106.3 33.18 –7.69 –40.3 –34.3 AXA S.A. 47.9 17.17 –10.74 –45.7 –23.5 Marie Marcus, chief executive of- economy, and our belief that things was during the 2001 recession, holders in miner OAO Norilsk Nickel France (Integrated Oil & Gas) France (Full Line Insurance) IBM IBM 22.50 87.75 –1.25 –1.40% S FEARS mount that economic ficer of Marcus St. Jean, a recruiting may get worse before getting bet- when ad spending plummeted to elect a new expanded board of 13 Vodafone Grp 108.5 1.10 –7.83 –38.9 –25.4 Rio Tinto 43.9 24.24 –11.85 –47.0 12.0 JPMorgChas JPM 103.10 41.64 4.96 13.52% U.K. (Mobile Telecommunications) U.K. (General Mining) JohnsJohns JNJ 46.90 55.85 –1.73 –3.00% turmoil will take a bite out of firm that specializes in the industry. ter.” Mr. Janedis previously ex- nearly 10% and the industry cut tens members, the company said Friday. Bayer 42.5 41.20 –7.83 –28.6 39.3 Banco Santander 76.6 9.07 –11.94 –34.4 –16.3 KftFoods KFT 32.90 27.25 –0.45 –1.62% ad spending, advertising and Ad executives say salaries typically pected spending to rise 1.5%. of thousands of jobs. One reason, re- Rusal, which owns a 25%-plus- Germany (Specialty Chemicals) Spain (Banks) A McDonalds MCD 30.90 53.35 1.27 2.44% marketing firms world-wide have represent about 55% to 65% of an One thing seems nearly certain, cruiters say, is that many ad firms two-shares stake in Norilsk, said the BHP Billiton 36.2 9.55 –7.87 –49.2 18.5 ArcelorMittal 42.9 21.92 –12.67 –60.5 ... Merck MRK 35.70 26.23 0.02 0.08% been cutting costs and—in some agency’s expenses. however: more job cuts. Brand saw a shakeout coming and have current board, controlled by tycoon U.K. (General Mining) Luxembourg (Iron & Steel) BP 132.4 3.76 –8.12 –39.2 –38.7 ING Groep 29.3 10.42 –12.69 –67.9 –56.8 Microsoft MSFT 213.60 21.50 –0.80 –3.59% cases—jobs. While the year started with high Union, a branding firm owned by kept a close eye on staffing and bud- Vladimir Potanin’s investment vehi- U.K. (Integrated Oil & Gas) Netherlands (Life Insurance) Pfizer PFE 141.70 15.14 –0.53 –3.38% Overthe pastweek, several firms, hopes—thanks in part to such ad- WPP, is expected to make layoffs in gets throughout the year. In July, In- cle Interros, is incapable of acting in GlaxoSmithKline 96.8 9.95 –8.13 –22.3 –31.6 Banco Bilbao Viz 47.3 9.35 –12.78 –46.7 –34.8 ProctGamb PG 43.30 59.56 –1.32 –2.17% U.K. (Pharmaceuticals) Spain (Banks) including Starcom MediaVest, heavy events as the Beijing Olympics coming weeks, according to people terpublic’s DraftFCB dismissed 42 the interests of all shareholders. 3M MMM 14.90 54.26 0.76 1.42% TBWA/Chiat/Day and U.S. presidential election— familiar with the matter. Branding staffers. Aegis Group’s Carat said The current board “has presided HSBC Hldgs 161.6 7.90 –8.14 –17.1 –11.3 Deutsche Telekom 53.0 9.00 –13.00 –34.2 –41.3 U.K. (Banks) Germany (Mobile Telecommunications) UnitedTech UTX 19.30 47.63 1.30 2.81% those hopes were quickly dashed as firms typically are among the first to over a litany of corporate gover- ADVERTISING and Landor have is- last month it would cut 75 jobs. WPP UBS 44.4 17.00 –8.16 –71.9 –64.9 Soc. Generale 39.9 50.00 –13.04 –56.5 –43.1 Verizon VZ 42.00 26.77 0.84 3.24% sued pink slips to the struggling automotive and finan- be hurt by economic woes because Group has had a hiring freeze in nanceabuseswhichhaveledtowide- Switzerland (Banks) France (Banks) WalMart WMT 48.20 50.95 –0.44 –0.86% their workers. cial-services industries reined in they usually work on a project-by- place since the first of the year, ac- spreaddeparturesofseniormanage- Sources: Dow Jones Indexes; WSJ Market Data Group Source: WSJ Market Data Group Starcom MediaVest, a media-buy- spending. Now, the continuing up- project basis, while ad agencies gen- cording to a spokesman for the ad- ment, damaged confidence in No- ing giant owned by Publicis Groupe, heaval in financial markets is acceler- erally have longer-term relations holding company. rilsk Nickel and destroyed value for said last week that it is slashing ating the retreat, ad executives say. with their clients, ad executives say. “No one is really overstaffed at itsshareholders,”thecompanysaid. about 150 jobs by year end, partly in Just how big a blow the business will “It is an easy area to chop,” says the moment,” says Amy Hoover, vice Rusal is proposing Luca Cordero a restructuring of its business with suffer isn’t clear, though many indus- Dean Crutchfield, a branding expert president and partner at Talent Zoo, di Montezemolo, who is chairman of Hedge funds Credit-default swaps: European companies General Motors. try watchers suggest it won’t be as who most recently worked for Omni- an Atlanta firm that recruits adver- Fiat SpA; Tye Burt, the chief execu- 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 Landor, a branding firm owned bad as during the 2001 recession com’s Wolff-Olins. tising personnel. “Everyone has tive of Canadian miner Kinross Gold how much a seller demands to sell-protection from default on an issuer's debt. The snapshot below gives a Convertible Arbitrage -8.87% -21.30% -24.3% -28.8% -28.9% by WPP Group, laid off about 10 em- Unlike 2001, when marketers Agency executives say the soft been running pretty lean,” and many Corp.; and James Goodwin, manag- sense which way the market was moving yesterday. credit Merger Arbitrage -8.44% -12.43% -12.1% -12.0% -11.9% ployees from its London office. slashed budgets “immediately and economy will force many firms to firms haven’t returned to the ing member of Moon Capital Man- Event Driven -8.09% -13.51% -15.3% -16.9% -18.1% TBWA/Chiat/Day, a unit of Omni- across the board,” companies this cut jobs more quickly in response to “bloated staffing levels that existed agement LLC, a private-investment Distressed Securities -4.70% -13.97% -15.5% -21.1% -23.6% Showing the biggest improvement... And the most deterioration com Group, last week dismissed 20 time around are pulling back in a client losses because new business during the dot-com boom,” she says. management company, as indepen- markets & Equity Market Neutral 0.15% -0.23% -5.4% -3.9% -2.0% employees from its New York office, “very measured fashion,” says Publi- is less likely to materialize in a Indeed, Interpublic had about dent directors of the new board. Equity Long/Short -2.96% -7.57% -13.1% -13.3% -12.0% CHANGE, in basis points CHANGE, in basis points about 6% of its work force. A spokes- cis Chief Executive Maurice Levy. downturn. Last week, Interpublic 43,000 employees world-wide as of Norilsk is at the center of a share- Yesterday Yesterday Five-day 28-day Yesterday Yesterday Five-day 28-day *Estimates as of 10/09/08, after fees; Source: www.djhedgefundindexes.com Dexia Cr Loc 306 –59 –118 75 HeidelbergCement 689 61 212 323 man described the move as “restruc- Forecasters are divided on the Group’s Lowe London cut its pay- Dec. 31, down from 54,100 in 2001. holders’ conflict. Rusal, whose ma- dealmakers ABN AMRO Bk N V 115 –23 –55 27 Corus Group 385 63 100 165 jority shareholder is businessman Credit derivatives Oleg Deripaska, has repeatedly ac- Bk OF SCOTLAND PLC 195 –21 –99 –56 Aegon N.V. 477 67 95 317 cused Mr. Potanin and the chairman Spreads on credit derivatives are one way the market rates Royal Bk Scotland plc 193 –18 –89 70 Alcatel Lucent 910 68 157 402 Bay Hypo und Vereinsbank AG –14 Imperial Tob Gp 72 of Norilsk’s board of abusing the in- creditworthiness. Regions that are treading in rough waters can 97 –32 28 305 114 143 Dresdner Bk AG 96 –13 –35 10 FIAT 437 76 139 196 terests of other shareholders. see spreads swing toward the maximum—and vice versa. Indexes Severstal to slash output, may trim profit outlook Commerzbank AG 96 –12 –34 8 TelefonAB L M Ericsson 346 85 124 171 Following a $4.5 billion loan ob- below are for five-year swaps. Bco Espirito Santo S A 106 –9 –51 –32 Hanson 373 86 172 179 By Will Bland seen prices for their products halve Magnitogorsk Iron & Steel Works. Evraz declined to comment. tained in March from a consortium Markit iTraxx Indexes SPREAD RANGE, in pct. pts. Hannover Ruck AG 58 –8 –15 –10 Thomson 848 88 208 283 in the past four months. Severstal’s Steel executives around the world “By producing less, the steelmak- of international banks to finance Mid-spread, since most recent roll Abbey Natl plc 85 –7 –35 –9 CIE Industriali Riunite 649 95 271 289 MOSCOW—Russia’s largest steel- share price is now less than are struggling to avoid ex- ers are losing economies of scale the purchase of its 25% stake in No- Index: series/version in pct. pts. Mid-price Coupon Maximum Minimum Average Europe: 10/1 1.32 99.46% 0.01% 1.35 1.18 1.26 Source: Markit Group maker OAO Severstal said Friday a quarter of its June level, cess supply and falling and their profit margins will fall, rilsk, Rusal has indicated it wants a Eur. High Volatility: 10/12.73 97.73 0.02 2.73 2.16 2.42 that it is cutting October production amid slower global eco- prices. Oversupply con- but the alternative is to see inven- full merger with Norilsk. Europe Crossover: 10/1 6.75 95.78 0.06 6.75 5.74 6.10 Behind Europe’s deals: Bank revenue rankings, Global by as much as 30% and may lower its nomic growth and a longer- cerns have also prompted tory stack up,” says Troika analyst Rusal has every right to call the Asia ex-Japan IG: 10/1 2.71 96.98 0.02 3.28 1.99 2.53 earnings forecast for the year, as the term reduction in steel or- ArcelorMittal, the world’s Sergei Donskoi. He said sales will meeting and Interros won’t prevent Behind every IPO, bond offering, merger deal or syndicated loan is one or more investment banks. Here are Japan: 10/1 1.97 97.76 0.02 2.26 1.58 1.86 weaker global economy darkens the ders from construction largest steel producer by fall faster than costs. it, an Interros spokesman said. How- investment banks ranked by year-to-date revenues from recent deals. Note: Data as of October 9 prospects for Russia’s commodity companies and car makers. volume, to trim production Integrated steel producers in ever, he added that the timing of the PERCENTAGE OF TOTAL REVENUE producers. Severstal, which has in Ukraine and Kazakhstan. Russia benefit from easy access to move was bad, given the global fi- WSJ.com In percentage points Revenue, Market Equity Debt Mergers & The steelmaker, majority owned spent about $3 billion to Magnitogorsk on the country’s stock of coking coal nancial crisis. Spreads in millions share capital markets capital markets acquisitions Loans Index roll JPMorgan $4,148 8.7% 32% 22% 35% 11% by billionaire Alexei Mordashov, boost capacity in the U.S., Wednesday cut output by and iron and inexpensive electricity, Norilsk confirmed that it has re- Follow the markets throughout Spreads on five- 3.00 Goldman Sachs 3,342 7.0% 34% 13% 49% 4% said it will cut this month’s produc- said it is now reconsider- 15%, and said it will lay off a resulting in lower production costs ceived the letter from Rusal, but de- the day, with updated stock year swaps for Europe High Volume t 2.25 Merrill Lynch 2,924 6.2% 36% 23% 39% 2% tion by 25% at its main Russian ing its earnings forecast tenth of its workforce, or than in China or Europe. However, clined to provide further comments. quotes, news and commentary corporate debt;

plant, and by 30% at plants in the for the year. It had pre- about 3,000 people. Many analysts say that Russian producers According to Russian law, Noril- based on Markit 1.50 Citi 2,853 6.0% 34% 27% 32% 7% Alexei at WSJ.com/Europe. t UBS 2,499 5.3% 28% 22% 47% 2% U.S. and Italy. A spokeswoman said dicted 2008 earnings be- Mordashov analysts expect cuts by the have relatively few long-term con- sk’s board has five days to answer Also, receive email alerts that iTraxx indexes. 0.75 Europe Sub Financials Morgan Stanley 31% 20% 45% 4% no decision has been made on job fore interest, taxes, depreci- Russia’s other two listed tracts with customers, and are there- Rusal’s letter. However, as an owner summarize the day’s trading in 2,484 5.2% cuts. ation and amortization of $5.8 bil- producers, OAO Novolipetsk Iron & fore more vulnerable to falls in mar- of more than 10% of the company, Europe and Asia. 0 Credit Suisse 2,232 4.7% 28% 23% 43% 7% Steel producers in Russia—the lion to $6.1 billion. Steel Works and Evraz Group SA. ket prices. Rusal has a right to convene extraor- To sign up, go to May June July Aug. Sept. Deutsche Bank 2,102 4.4% 22% 26% 44% 8% 2008 Barclays Capital 2,053 4.3% 32% 37% 20% 11% world’s fourth-largest supplier af- The production cuts come after a Novolipetsk said it is considering —Alex MacDonald in London dinary general meetings even with- WSJ.com/Online Today ter China, Japan and the U.S.—have similar move by Russian rival OAO cuts, while a spokeswoman for contributed to this article. out the board’s approval. Source: Markit Group Source: Dealogic 26 MONDAY, OCTOBER 13, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. MONDAY, OCTOBER 13, 2008 7 Advertisement [ INTERNATIONAL INVESTMENT FUNDS www.WSJ.com ] Advertisement CORPORATE NEWS 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 n POLAR CAPITAL PARTNERS LIMITED Global Equity Fd GL EQ LUX 10/10 USD 1.07 –43.3 –46.4 –18.1 Eq. US Rel Val A US EQ LUX 10/09 USD 16.82 –41.2 –46.4 –23.7 Index Linked Bd Fd SEK OT BD LUX 10/10 SEK 12.88 3.1 6.3 3.3 n LLOYD GEORGE MANAGEMENT (HK) LTD International Fund Managers (Ireland) Limited PH - 353 1 670 660 Fax - 353 1 670 1185 Eq. US Sm Cap Val A US EQ LUX 10/09 USD 14.73 –41.0 –48.1 –24.0 Asia Ex-Japan Fund USD AS EQ IRL 05/20 USD 1.12 –93.7 –93.8 –72.2 Medical Fd OT EQ LUX 10/10 USD 2.65 –31.2 –31.5 –13.7 Eq. US Value Opp A US EQ LUX 10/09 USD 14.58 –42.8 –47.8 –26.6 Suite 3808, One Exchange Square, HK: Tel. 852 2845 4433 Fax. 852 2845 3911 Global Technology OT EQ IRL 10/09 USD 8.30 –42.6 –45.9 –19.7 Short Medium Bd Fd SEK NO MM LUX 10/10 SEK 9.06 2.1 2.8 2.7 Money Market EURO A EU MM LUX 10/09 EUR 26.88 3.4 4.4 4.0 LG Antenna GL EQ BMU 10/03 USD 41.64 –44.4 –40.8 –8.3 Japan Fund USD JP EQ IRL 10/10 USD 11.36 –32.5 –36.7 –20.2 Technology Fd OT EQ LUX 10/10 USD 1.68 –41.1 –43.1 –15.8 Money Market USD A US MM LUX 10/09 USD 15.67 2.3 3.4 4.2 LG Asian Plus AS EQ CYM 10/03 USD 47.71 –44.1 –40.8 –3.6 World Fd GL EQ LUX 10/10 USD 1.72 –35.6 –39.2 –8.5 LG Asian SmallerCo's AS EQ BMU 10/09 USD 56.42 –64.5 –66.3 –30.0 n Hemisphere Management (Ireland) Limited Wells Fargo wins contest for Wachovia LG India EA EQ MUS 10/03 USD 44.47 –52.4 –42.0 –5.0 Columbus USD A GL EQ CYM 08/29 USD 91.52 –9.3 –6.8 NS n SEB Fund 4 Siberian Investment Co EE EQ IRL 09/15 USD 35.18 –60.1 –55.2 –22.0 Discovery USD A OT OT CYM 08/29 USD 115.27 3.3 15.0 9.3 Short Bond Fd EUR EU MM LUX 10/10 EUR 1.26 1.3 1.6 2.2 to Citigroup said Thursday. via. At one point, Citigroup wanted “confident” the deal will be com- of Wachovia and Wells Fargo, their Elbrus USD A GL EQ CYM 08/29 USD 12.17 –25.7 –10.6 12.4 Short Bond Fd SEK NO MM LUX 10/10 SEK 21.31 1.6 2.3 2.5 Europn Conviction USD B EU EQ CYM 08/29 USD 118.01 3.3 9.2 7.2 Short Bond Fd USD US MM LUX 10/10 USD 2.48 1.1 2.2 3.3 Citigroup abandons “We will continue to apply the Wachovia branches on the U.S. East pleted. A Wells Fargo spokesman de- lawyers and advisers, according to Europn Forager USD B OT OT CYM 08/29 USD 198.32 –3.3 –4.8 8.4 n same discipline we employed in this Coast stretching as far south as Vir- clined to comment further. Wacho- people familiar with the matter. Gl Utilities Abs Rtn USD A OT OT CYM 08/29 USD 100.13 –16.6 –10.7 –1.9 SEB Fund 5 n Japan Abs Ret USD A AS EQ CYM 07/31 USD 141.61 –9.5 –17.9 –7.4 Alpha Bond Fd SEK -A- NO BD LUX 10/09 SEK 10.02 –1.9 –1.2 –0.1 THE NATIONAL INVESTOR compromise talks, and other recent transactions to fu- ginia, this person said. Wells Fargo via CEO Robert Steel, who said in a Wachovia has said its directors Latin America USD A GL EQ CYM 08/29 USD 13.89 1.9 2.4 16.3 Alpha Bond Fd SEK -B- NO BD LUX 10/09 SEK 9.00 –1.9 –1.2 –0.1 PO Box 47435, Abu Dhabi, UAE Web:www.tni.ae ture acquisition opportunities,” Mr. wasn’t willing to give up sworn court filing that the were bound by their fiduciary duty Paragon Limited USD A EU EQ CYM 08/29 USD 307.57 11.9 27.2 21.1 Alpha Bond Fd SEK -C- NO BD LUX 10/10 SEK 24.95 –2.6 –1.9 –0.5 Email: [email protected] Tel:+971 2 619 2300 Alpha Bond Fd SEK -D- NO BD LUX 10/10 SEK 8.31 –2.6 –1.9 –0.5 cites asset doubts n MP ASSET MANAGEMENT INC. UK Fund USD A OT OT CYM 08/29 USD 169.04 6.3 1.9 6.1 MENA Real Estate Acc Fund OT EQ ARE 09/15 USD 10.83 –26.7 –3.6 4.4 Pandit said in a statement. Walking branches in Virginia and Charlotte, N.C., bank was to shareholders to accept Wells Far- Alpha Short Bd SEK -A- NO MM LUX 10/09 SEK 10.72 2.1 2.9 2.8 Tel: + 386 1 587 47 77 UAE Blue Chip Fund Acc AS EQ ARE 09/25 AED 8.76 –24.8 3.1 1.3 n PT CIPTADANA ASSET MANAGEMENT Alpha Short Bd SEK -B- NO MM LUX 10/09 SEK 10.06 2.1 2.9 2.8 away from Wachovia could put Citi- the District of Columbia. on the verge of failure the go’s offer. MP-BALKAN.SI OT OT SVN 10/09 EUR 32.08 –56.1 –63.6 –25.1 Tel: 521-3479 Fax: 521-3478 Website: www.ciptadana-asset.com Alpha Short Bd SEK -C- NO MM LUX 10/10 SEK 20.97 1.9 2.6 2.7 By David Enrich MP-TURKEY.SI OT OT SVN 10/09 EUR 25.76 –49.5 –54.0 –17.6 group back in the market to buy an- Wells Fargo Chairman preceeding week, wasn’t In Wachovia’s hometown of Char- Indonesian Grth Fund EA EQ CYM 09/30 USD 92.47 NS –21.5 4.8 Alpha Short Bd SEK -D- NO MM LUX 10/10 SEK 8.72 1.9 2.6 2.7 And Dan Fitzpatrick other bank, even though executives Richard Kovacevich dis- mentioned in a press re- lotte, relief washed over some em- n Bond Fd EUR -C- EU BD LUX 10/10 EUR 1.25 3.0 3.6 1.4 PAREX ASSET MANAGEMENT IPAS n RUSSELL INVESTMENT GROUP Basteja Blvd. 14, Riga, LV-1050, Latvia Bond Fd EUR -D- EU BD LUX 10/10 EUR 0.50 3.0 3.6 1.5 have insisted they have plenty of de- missed the suggestion that lease issued jointly by the ployees who work at the bank’s Multi-Style, Multi-Manager Funds www.russell.com Bond Fd SEK -C- NO BD LUX 10/10 SEK 39.24 3.9 4.8 2.7 www.parexgroup.com Tel: +371 67010810 Actions France A EU EQ IRL 10/09 EUR 620.35 –37.0 –41.0 NS Bond Fd SEK -D- NO BD LUX 10/10 SEK 11.77 2.7 3.6 2.1 Wells Fargo & Co. won the battle posits already. the San Francisco bank will two banks Thursday night. downtown headquarters. Wells Parex Caspian Sea Eq EU EQ LVA 10/07 EUR 4.03 –55.1 –55.9 NS Core Eurozone Eq B EU EQ IRL 10/09 EUR 708.68 NS NS NS Corp. Bond Fd EUR -C- EU BD LUX 10/10 EUR 1.06 –9.4 –10.4 –5.4 for Wachovia Corp. as rival suitor A person close to Wachovia said have to absorb assets that The Federal Reserve Fargo was widely seen by Wachovia Parex Eastern Europ Bd EU BD LVA 10/07 USD 12.21 –10.7 –9.0 –1.8 Euro Fixed Income A EU BD IRL 10/09 EUR 1156.70 –7.4 –8.7 –5.1 Corp. Bond Fd EUR -D- EU BD LUX 10/09 EUR 0.84 –8.7 –9.7 –5.2 n TRIGON CAPITAL Parex Russian Eq EE EQ LVA 10/07 USD 12.95 –59.2 –53.6 –17.6 Euro Fixed Income B EU BD IRL 10/09 EUR 1225.80 –7.0 –8.1 –4.6 Corp. Bond Fd SEK -C- NO BD LUX 10/10 SEK 10.82 –10.3 –10.5 –5.2 Phone +372 667 9208 Fax +372 667 9221 E-mail [email protected] Website www.trigoncapital.com Citigroup Inc. walked away from Citigroup officials didn’t express se- are shakier than originally said it would “immediately employees as a more accommodat- Parex Ukrainian Eq EU EQ LVA 10/07 EUR 3.69 –64.0 NS NS Euro Small Cap A EU EQ IRL 10/09 EUR 1020.91 –42.0 –48.6 –24.4 Corp. Bond Fd SEK -D- NO BD LUX 10/10 SEK 8.50 –10.2 –10.4 –5.1 Central and Eastern EuropeanEE EUR EQ EST 10/10 EEK 131.77 –50.8 –56.1 –27.4 compromise negotiations because rious concerns about the bank’s thought. “Given our broad- begin consideration” of ac- ing acquirer than Citigroup. “We’re Euro Small Cap B EU EQ IRL 10/09 EUR 1085.57 –41.8 –48.3 –23.9 Danish Mortgage Bond Fd EURNO -ID- BD LUX 10/10 EUR 97.08 NS NS NS New Europe Small Cap EUR EE EQ EST 10/10 EEK 68.83 –50.6 –55.9 –26.0 Eurozone Agg Eq A EU EQ IRL 10/09 EUR 553.23 –42.2 –46.0 NS Danish Mortgage Bond Fd EURNO -RC- BD LUX 10/10 EUR 96.92 NS NS NS Second Wave EUR EE EQ EST 10/10 EEK 128.13 –53.4 –56.8 –19.3 of worries about the quality of some books until talks reached an im- based operating expertise quisition filings by Wells ready to hold our heads up again,” Eurozone Agg Eq B EU EQ IRL 10/09 EUR 789.29 –42.0 –45.7 –20.5 Danish Mortgage Bond Fd SEKNO -ID- BD LUX 10/10 SEK 101.24 NS NS NS of Wachovia’s assets. passe last Wednesday. “That was and specific understanding Fargo. The Fed also noted one Wachovia employee said. Glbl Bd (EuroHdg) A GL BD IRL 10/09 EUR 1231.58 –4.8 –4.4 –2.0 Danish Mortgage Bond Fd SEKNO -RC- BD LUX 10/10 SEK 934.99 NS NS NS Glbl Bd (EuroHdg) B GL BD IRL 10/09 EUR 1297.67 –4.2 –3.8 –1.3 Flexible Bond Fd -C- NO BD LUX 10/10 SEK 20.28 2.8 3.4 2.9 The move clears the way for the drumbeat we started to hear,” of these individual busi- Vikram Pandit “the considerable efforts” Friday, Wachovia shares surged Glbl Bd A EU BD IRL 10/09 EUR 1007.30 –0.1 –1.8 –3.5 Flexible Bond Fd -D- NO BD LUX 10/10 SEK 11.48 2.8 3.4 2.9 Wells Fargo to proceed with the de- this person said. nesses, we believe we have of Citigroup and Wells 43%, or $1.55, to $5.15, while Citi- Glbl Bd B EU BD IRL 10/09 EUR 1064.64 0.4 –1.3 –2.9 n PICTET & CIE, ROUTE DESACACIAS 60, CH-1211 GENEVA 73 Glbl Real Estate A OT EQ IRL 10/09 USD 782.13 –38.5 –46.5 –21.2 n SEB Global Hedge finitive agree- Another dispute involved how adequately evaluated the risks in- Fargo “to reach an accord.” group gained 9.1%, or $1.18, to Tel: + 41 (58) 323 3000 Web: www.pictetfunds.com Glbl Real Estate B OT EQ IRL 10/09 USD 800.42 –38.2 –46.2 –20.7 Global Hedge I SEK -C- OT OT LUX 10/10 SEK 90.30 –15.0 –16.9 –6.3 ment it reached Wachovia, which has 3,348 retail herent in the portfolios as of the As part of a lawsuit in a New York $12.93, and Wells Fargo was up PF (LUX)-Asian Eq-Ica AS EQ LUX 10/09 USD 119.38 –49.4 –52.9 –10.6 Glbl Real Estate EH-A OT EQ IRL 10/09 EUR 745.51 –36.5 –45.1 –22.5 Global Hedge I SEK -D- OT OT LUX 10/10 SEK 82.52 –17.4 –19.3 –7.6 n YUKI MANAGEMENT & RESEARCH CO., LTD. Glbl Real Estate SH-B OT EQ IRL 10/09 GBP 70.58 –35.7 –44.2 –21.1 with Wachovia branches, would be divided be- time of this merger agreement,” he state court, Citigroup lawyers plan 3.9%, or $1.06, to $28.30. PF (LUX)-Asian Eq-Pca AS EQ LUX 10/09 USD 114.80 –49.9 –53.3 –11.3 n Tel: +81-3-5299-3277 www.yukijapan.co.jp Glbl Strategic Yield A EU BD IRL 10/09 EUR 1269.99 –15.0 –16.3 –6.1 SEB Sicav 1 PF (LUX)-Biotech-Pca OT EQ LUX 10/08 USD 295.02 –11.3 –15.9 5.4 YMR-N Growth Fund JP EQ IRL 10/10 JPY 8439.00 –49.7 –57.4 –33.1 on Oct. 3. That tween Citigroup and Wells Fargo, ac- said in a statement. to demand internal emails and cell- —Damian Paletta and Sudeep Glbl Strategic Yield B EU BD IRL 10/09 EUR 1349.04 –14.6 –15.8 –5.5 Choice Emerging Mkts Fd GL EQ LUX 10/10 USD 1.53 –54.0 –53.9 –12.7 PF (LUX)-CHF Liq-Pca CH MM LUX 10/08 CHF 123.67 1.4 1.9 1.9 YMR-N Japan Fund JP EQ IRL 10/10 JPY 9490.00 –45.4 –54.8 –28.2 Japan Equity A JP EQ IRL 10/09 JPY 10932.00 –41.2 –48.7 –26.8 deal, announced cording to a person close to Wacho- Mr. Kovacevich added that he is phone records between executives Reddy contributed to this article. PF (LUX)-CHF Liq-Pdi CH MM LUX 10/08 CHF 95.46 1.4 1.9 1.9 n SEB Sicav 2 YMR-N Low Price Fund JP EQ IRL 10/10 JPY 12067.00 –47.1 –55.3 –31.0 Japan Equity B JP EQ IRL 10/09 JPY 11567.00 –40.9 –48.4 –26.4 PF (LUX)-Cnt Eu Eq-I EU EQ LUX 10/08 EUR 132.93 –40.2 –43.3 –18.3 Choice Asia SmCap exJpn AS EQ LUX 10/10 SEK 16.67 –50.1 –55.8 –22.7 just four days af- Multi St Cash Plus EH-A GL EQ IRL 10/09 EUR 986.73 –2.5 –2.6 NS YMR-N Small Cap Fund JP EQ IRL 10/10 JPY 5440.00 –56.1 –63.3 –40.0 PF (LUX)-Digital Comm-Pca OT EQ LUX 10/08 USD 78.12 –42.9 –40.1 –11.5 Europe Chance/Risk Fd EU EQ LUX 10/10 EUR 831.01 –51.1 –54.3 –27.3 Yuki Mizuho Gen Jpn III JP EQ IRL 10/10 JPY 4535.00 –51.2 –57.8 –31.7 PF (LUX)-East Eu-Pca EU EQ LUX 10/08 EUR 193.91 –62.3 –60.4 –27.1 PacBasn (Ex-Jap) Eq A AS EQ IRL 10/09 USD 1424.51 –46.2 –48.4 –10.8 ter Citigroup PacBasn (Ex-Jap) Eq B AS EQ IRL 10/09 USD 1508.85 –45.9 –48.1 –10.3 Yuki Mizuho Jpn Dyn Gro AS EQ IRL 10/10 JPY 4827.00 –50.3 –58.4 –35.1 PF (LUX)-Emg Mkts LC-Pca GL EQ LUX 10/09 USD 102.36 –55.7 –56.0 –15.1 thought it had Pan European Eq A EU EQ IRL 10/09 EUR 807.35 –40.6 –44.4 –21.0 Yuki Mizuho Jpn Exc 100 JP EQ IRL 10/10 JPY 6378.00 –49.1 –55.5 –33.3 PF (LUX)-Emg Mkts-Pca GL EQ LUX 10/09 USD 335.90 –54.2 –54.3 –15.4 Pan European Eq B EU EQ IRL 10/09 EUR 854.44 –40.4 –44.1 –20.5 Yuki Mizuho Jpn Gen JP EQ IRL 10/10 JPY 8028.00 –47.8 –57.3 –31.0 won the battered PF (LUX)-Eu Indx-Pca EU EQ LUX 10/08 EUR 87.22 –36.1 –39.4 –16.8 US Equity A US EQ IRL 10/09 USD 684.81 –41.0 –43.8 –17.5 Yuki Mizuho Jpn Gro JP EQ IRL 10/10 JPY 6032.00 –51.1 –58.6 –34.5 PF (LUX)-EUR Bds-Pca EU BD LUX 10/08 EUR 370.65 2.6 2.3 0.1 bank, now is val- US Equity B US EQ IRL 10/09 USD 727.87 –40.7 –43.4 –17.0 Yuki Mizuho Jpn Inc JP EQ IRL 10/10 JPY 7797.00 –40.5 –50.2 –25.2 PF (LUX)-EUR Bds-Pdi EU BD LUX 10/08 EUR 291.08 2.6 2.3 0.1 US Small Cap A US EQ IRL 10/09 USD 1033.48 –39.8 –44.9 –18.3 ued at about PF (LUX)-EUR Cp Bd-Pca EU BD LUX 10/08 EUR 123.90 –5.5 –6.3 –3.5 n SG ASSET MANAGEMENT HTTP://WWW.SGAM.COM Yuki Mizuho Jpn Lg Cap AS EQ IRL 10/10 JPY 5055.00 –46.4 –53.8 NS US Small Cap B US EQ IRL 10/09 USD 1099.11 –39.6 –44.6 –17.8 PF (LUX)-EUR Cp Bd-Pdi EU BD LUX 10/08 EUR 90.32 –5.5 –6.3 –3.5 Eq. China A AS EQ LUX 10/09 USD 14.35 –56.6 –60.4 –3.7 Yuki Mizuho Jpn LowP JP EQ IRL 10/10 JPY 10073.00 –44.4 –51.2 –28.1 $11.38 billion. Yuki Mizuho Jpn PGth JP EQ IRL 10/10 JPY 7832.00 –52.3 –58.4 –33.1 PF (LUX)-EUR HiYld-Pca EU BD LUX 10/08 EUR 112.11 –21.7 –24.1 –12.0 n SEB ASSET MANAGEMENT S.A. Eq. Pacific A AS EQ LUX 10/09 USD 7.11 –48.7 –50.5 –7.0 Richard Wells Fargo PF (LUX)-EUR HiYld-Pdi EU BD LUX 10/08 EUR 72.51 –21.7 –24.1 –12.0 www.seb.se Yuki Mizuho Jpn SmCp JP EQ IRL 10/10 JPY 5298.00 –58.2 –64.1 –38.9 n SGAM Fund PF (LUX)-EUR Liq-Pca EU MM LUX 10/08 EUR 133.58 2.9 3.7 3.4 SEB Fund 1 Yuki Mizuho Jpn Val Sel AS EQ IRL 10/10 JPY 5119.00 –45.5 –52.6 –30.1 Kovacevich has said it ex- Bonds CHF A CH BD LUX 10/09 CHF 27.16 4.1 4.3 0.6 PF (LUX)-EUR Liq-Pdi EU MM LUX 10/08 EUR 99.78 2.9 3.7 3.4 Choice Global Value -C- GL EQ LUX 10/10 SEK 57.77 –50.5 –55.4 –29.2 Yuki Mizuho Jpn YoungCo AS EQ IRL 10/10 JPY 2355.00 –58.8 –66.1 –49.1 Bonds ConvEurope A EU BD LUX 10/08 EUR 29.79 2.5 3.8 7.6 pects to com- PF (LUX)-Europ Eq-Pca EU EQ LUX 10/08 EUR 358.47 –41.2 –45.7 –20.1 Choice Japan Fd JP EQ LUX 10/10 JPY 43.83 –44.6 –51.3 –30.4 Bonds Eur Corp A EU BD LUX 10/09 EUR 19.90 –9.3 –9.8 –5.3 n Yuki 77 Series PF (LUX)-EuSust Eq-Pca EU EQ LUX 10/08 EUR 115.32 –37.4 –42.7 –20.6 Choice Jpn Chance/Risk JP EQ LUX 10/10 JPY 45.94 –48.7 –54.1 –29.9 plete the purchase by year end. That Bonds Eur Hi Yld A EU BD LUX 10/08 EUR 16.11 –24.0 –25.8 –12.8 PF (LUX)-Gl Em Dbt-Pca GL BD LUX 10/08 USD 182.69 –9.0 –6.5 0.0 Choice NthAmChance/Risk US EQ LUX 10/10 USD 2.98 –42.9 –44.5 –19.7 Yuki 77 Excellent JP EQ IRL 10/10 JPY 4419.00 –50.1 –56.2 –32.7 Bonds EURO A EU BD LUX 10/09 EUR 38.06 3.0 3.7 1.4 would put one of the weakest U.S. PF (LUX)-Gl Em Dbt-Pdi GL BD LUX 10/08 USD 130.26 –9.0 –6.5 0.0 Europe 2 Fd EU EQ LUX 10/10 EUR 0.74 –49.0 –52.5 –25.8 Yuki 77 General JP EQ IRL 10/10 JPY 5923.00 –48.5 –56.5 –31.6 Bonds Europe A EU BD LUX 10/09 EUR 36.50 2.1 2.1 0.8 PF (LUX)-Gl Eq Sel-Pca GL EQ LUX 10/08 USD 14.11 –42.0 –44.7 –19.2 Europe 3 Fd EU EQ LUX 10/10 GBP 2.60 –44.8 –45.3 –19.2 Yuki 77 Growth JP EQ IRL 10/10 JPY 6463.00 –47.3 –55.4 –32.3 banks under control of a much stron- Bonds US MtgBkSec A US BD LUX 10/09 USD 22.42 –11.1 –9.2 –2.7 PF (LUX)-Gr China-Pca AS EQ LUX 10/09 USD 226.63 –47.0 –49.8 –2.0 Global Chance/Risk Fd GL EQ LUX 10/09 EUR 0.54 –31.6 –37.9 –17.8 Bonds US OppsCoreplus A US BD LUX 10/09 USD 31.08 –1.3 1.4 2.9 ger player. And unlike Citigroup’s PF (LUX)-Indian Eq-Pca EA EQ LUX 10/08 USD 223.03 –57.9 –49.3 –10.0 Global Fd GL EQ LUX 10/10 USD 1.66 –43.7 –46.6 –19.2 n Yuki Chugoku Series Bonds World A GL BD LUX 10/09 USD 37.58 1.1 5.6 7.2 PF (LUX)-Jap Index-Pca JP EQ LUX 10/09 JPY 8715.87 –38.6 –45.4 –24.4 Intl Mixed Fd -C- NO BA LUX 10/10 USD 22.18 –33.4 –35.1 –12.3 Yuki Chugoku Jpn Gen JP EQ IRL 10/10 JPY 6312.00 –45.8 –55.9 –31.9 original agreement, the Wells Fargo Eq. ConcentratedEuropeA EU EQ LUX 10/09 EUR 22.23 –44.9 –47.6 –24.4 PF (LUX)-Jp Eq Sel-Ica JP EQ LUX 10/09 JPY 8091.72 –39.6 –49.1 –28.3 Intl Mixed Fd -D- NO BA LUX 10/10 USD 15.65 –33.4 –35.1 –11.1 Yuki Chugoku Jpn Gro JP EQ IRL 10/10 JPY 5144.00 –49.0 –54.9 –30.4 Eq. Eastern Europe A EU EQ LUX 10/09 EUR 17.65 –59.9 –59.4 –26.4 takeover doesn’t involve govern- PF (LUX)-Jp Eq Sel-Pca JP EQ LUX 10/09 JPY 7909.65 –39.9 –49.4 –28.7 Wireless Fd OT EQ LUX 10/10 EUR 0.11 –44.1 –48.7 –18.7 Yuki Chugoku Jpn Inc JP EQ IRL 10/10 JPY 5119.00 –41.1 –47.7 –26.0 Eq. Equities Global Energy OT EQ LUX 10/09 USD 14.15 –43.8 –39.8 –6.7 PF (LUX)-JpEq130/30-Pca JP EQ LUX 10/09 JPY 4224.73 –38.7 –47.2 –28.5 Yuki Chugoku JpnLowP JP EQ IRL 10/10 JPY 7295.00 –44.0 –53.1 –26.4 ment financial assistance. n SEB Fund 2 Eq. Euroland A EU EQ LUX 10/09 EUR 9.70 –43.8 –46.4 –21.9 PF (LUX)-Pacif Idx-Pca AS EQ LUX 10/09 USD 180.36 –43.5 –46.0 –7.4 Eq. Euroland MidCapA EU EQ LUX 10/09 EUR 16.40 –43.4 –49.3 –24.5 Yuki Chugoku JpnPurGth JP EQ IRL 10/10 JPY 4657.00 –46.8 –56.1 –31.4 Other consequences of last PF (LUX)-Piclife-Pca CH BA LUX 10/08 CHF 720.39 –15.2 –18.7 –7.4 Choice Asia ex. Japan Fd AS EQ LUX 10/10 USD 4.45 –51.1 –54.7 –15.9 Currency Alpha EUR -IC- OT OT LUX 10/10 EUR 11.08 8.4 6.2 NS Eq. EurolandCyclclsA EU EQ LUX 10/09 EUR 14.36 –43.3 –44.3 –15.8 PF (LUX)-PremBrnds-Pca OT EQ LUX 10/08 EUR 49.61 –35.5 –41.8 –18.5 n Yuki Daishi Series week’s courtroom hostilities and du- Currency Alpha EUR -RC- OT OT LUX 10/10 EUR 11.04 8.1 5.7 NS Eq. EurolandFinancialA OT EQ LUX 10/09 EUR 11.29 –39.4 –44.0 –25.4 PF (LUX)-Rus Eq-Pca EE EQ LUX 10/08 USD 32.39 NS NS NS Yuki Daishi General JP EQ IRL 10/10 JPY 6792.00 –47.2 –55.7 –31.6 eling press releases could be messy. Currency Alpha SEK -ID- OT OT LUX 10/10 SEK 107.46 NS NS NS Eq. Glbl Emg Cty A GL EQ LUX 10/09 USD 6.41 –52.5 –52.9 –14.0 PF (LUX)-Security-Pca GL EQ LUX 10/08 USD 70.69 –36.7 –41.3 NS Currency Alpha SEK -RC- OT OT LUX 10/10 SEK 106.51 NS NS NS Eq. Global A GL EQ LUX 10/09 USD 21.43 –44.0 –46.6 –21.1 U.S. government officials are con- PF (LUX)-Sm Cap Eu-Pca EU EQ LUX 10/08 EUR 370.59 –40.0 –45.9 –17.7 n Yuki Hokuyo Japan Series Generation Fd 80 OT OT LUX 10/10 SEK 6.28 –33.6 –37.4 NS Eq. Global Technol A OT EQ LUX 10/09 USD 3.96 –44.2 –50.8 –23.8 PF (LUX)-US Eq-Ica US EQ LUX 10/08 USD 88.68 –31.1 –33.8 –11.4 Yuki Hokuyo Jpn Gen JP EQ IRL 10/10 JPY 4577.00 –48.1 –55.9 –30.6 cerned that the way the competing Nordic Focus EUR NO EQ LUX 10/10 EUR 56.71 –42.7 NS NS Eq. Gold Mines A OT EQ LUX 10/09 USD 18.87 –37.0 –35.5 –8.3 PF (LUX)-USA Index-Pca US EQ LUX 10/08 USD 78.68 –32.2 –35.7 –13.4 Yuki Hokuyo Jpn Gro JP EQ IRL 10/10 JPY 4711.00 –41.4 –50.8 –29.4 Nordic Focus NOK NO EQ LUX 10/10 NOK 59.45 NS NS NS Eq. Japan A JP EQ LUX 10/09 JPY 747.55 –43.5 –49.8 –29.1 deals unfolded might deter Ameri- PF (LUX)-USD Bds-Pca US BD LUX 10/08 USD 491.20 4.1 7.8 5.6 Nordic Focus SEK NO EQ LUX 10/10 SEK 58.27 –41.5 NS NS Eq. Japan Sm Cap A JP EQ LUX 10/09 JPY 810.71 –52.4 –58.2 –43.5 Yuki Hokuyo Jpn Inc JP EQ IRL 10/10 JPY 5317.00 –36.9 –46.6 –24.8 PF (LUX)-USD Bds-Pdi US BD LUX 10/08 USD 371.12 4.1 7.8 5.6 Eq. Japan Target A JP EQ LUX 10/09 JPY 1425.36 –29.6 –37.4 –21.6 can banks from agreeing to govern- n PF (LUX)-USD Liq-Pca US MM LUX 10/08 USD 129.52 1.9 2.9 3.8 n SEB Fund 3 Eq. Switzerland A CH EQ LUX 04/17 CHF 36.35 –16.6 –21.3 –4.3 Yuki Nishi Nippon City Japan Series ment-assisted transactions. That PF (LUX)-USD Liq-Pdi US MM LUX 10/08 USD 87.31 1.9 2.9 3.8 Choice Asia Eq. ex Japan Fd AS EQ LUX 10/10 USD 0.79 –51.2 –54.9 –14.8 Eq. UK A UK EQ LUX 10/09 GBP 10.16 –40.4 –44.6 –22.6 Yuki Nishi-Nippon Cty GeneralJP EQ IRL 10/10 JPY 4840.00 –50.1 –58.1 –33.3 The smart PF (LUX)-Water-Pca GL EQ LUX 10/08 EUR 108.57 –30.5 –32.1 –12.8 Choice North America Eq. Fd US EQ LUX 10/10 USD 1.40 –42.2 –44.2 –20.3 Eq. US ConcenCore A US EQ LUX 10/09 USD 16.45 –38.7 –40.5 –16.7 Yuki Nishi-Nippon Cty PurGthJpJP EQ IRL 10/10 JPY 4740.00 –46.9 –54.6 NS would make it harder for the govern- PF (LUX)-WldGovBds-Pca GL BD LUX 10/08 USD 152.06 3.3 7.6 6.7 Ethical Global Fd GL EQ LUX 10/10 USD 0.62 –43.6 –47.2 –20.3 Eq. US Lg Cap Gr A US EQ LUX 10/09 USD 11.77 –41.5 –43.0 –18.3 ment to seize institutions at no cost PF (LUX)-WldGovBds-Pdi GL BD LUX 10/08 USD 128.68 3.3 7.6 6.7 Ethical Sweden Fd NO EQ LUX 10/10 SEK 28.06 –37.0 –44.6 –17.8 Eq. US Mid Cap A US EQ LUX 10/09 USD 20.53 –47.5 –50.1 –17.2 n Yuki Shizuoka Japan Series PTF (LUX)-MidEast&NorAfr-PcaGL EQ LUX 10/08 USD 57.08 NS NS NS Europe Fd EU EQ LUX 10/10 USD 1.67 –52.9 –54.4 –15.9 Eq. US Multi Strg A US EQ LUX 10/08 USD 18.32 –36.4 –40.0 –17.2 Yuki Shizuoka General Japan JP EQ IRL 10/10 JPY 5169.00 –46.0 –58.7 –30.7 to the deposit-insurance fund, as it did when Washington Mutual Inc.’s banking operations failed last Advertisement [ ALTERNATIVE INVESTMENT FUNDS www.WSJ.com ] Advertisement month and were immediately sold to J.P. Morgan Chase & Co. for $1.9 12-month and 2-year returns may be calculated over 11- and 23-month NAV — %RETURN — NAV — %RETURN — money. 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 billion. NAV — %RETURN — INDICES Also unresolved are Citigroup’s FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR MultiAdv Arb EUR Hdg OT OT JEY 08/29 EUR 116.21 –4.4 –2.7 2.4 MultiAdv Arb GBP Hdg OT OT JEY 08/29 GBP 126.44 –3.8 –1.6 3.5 legal claims for as much as $60 bil- MultiAdv Arb Inst USD OT OT CYM 06/30 USD 98.01 –0.8 NS NS NAV % RETURN MultiAdv Arb S EUR OT OT CYM 08/29 EUR 122.55 –3.8 –1.6 3.7 FUND NAME GF DATE CR NAV 1-WK 1-MO 1-Q 1-YR 2-YR MultiAdv Arb S GBP OT OT CYM 08/29 GBP 128.91 –3.0 –0.3 5.2 n ARIX ABSOLUTE RETURN INVESTABLE INDEX MultiAdv Arb S USD OT OT CYM 08/29 USD 135.52 –4.2 –1.7 4.7 Feri Institutional Advisors, www.feri.de n MultiAdv Arb USD OT OT GGY 08/29 USD 212.06 –5.0 –2.9 3.3 An important HARMONY CAPITAL ARIX Composite Gross USD OT 09/30 USD 1454.02 NS –4.6 –9.1 –6.2 2.4 email: [email protected] n HSBC Uni-folio Harmony Cap Ltd A USD OT OT BMU 09/30 USD 2080.57 –10.9 –11.7 –0.3 n 788 ASSET MANAGEMENT LTD. Alpha AdvantEdge OT OT JEY 08/29 USD 124.20 –6.8 –2.3 3.4 NAV — %RETURN — sticking point was Harmony Cap Ltd B EUR OT OT BMU 09/30 EUR 2012.85 –10.3 –11.1 –0.9 FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR [email protected] www.788am.com Harmony Cap Ltd D USD OT OT BMU 09/30 USD 1193.39 –11.2 –12.1 –0.8 Asian AdbantEdge EUR OT OT JEY 08/29 EUR 103.08 –13.1 –5.5 NS 788 China Fund Ltd OT OT CYM 09/30 USD 35.88 –88.1 –86.3 –46.7 Harmony Cap Ltd E EUR OT OT BMU 09/30 USD 1159.72 –10.5 –11.4 –1.3 Asian AdvantEdge OT OT JEY 08/29 USD 184.79 –13.5 –5.3 7.7 Meriden Opps Fund GL OT AND 10/08 EUR 100.56 –10.3 NS –1.3 Emerg AdvantEdge OT OT JEY 08/29 USD 176.63 –14.6 –5.1 6.7 the valuation of 788 China Smaller Cap OT OT CYM 09/30 USD 32.78 NS NS NS Harmony Cap Ltd F GBP OT OT BMU 09/30 GBP 1012.00 –9.9 –10.4 0.2 Meriden Protective Div GL EQ AND 10/06 EUR 85.43 5.3 –6.2 –7.2 788 Gl Asset Alloc. Fd OT OT CYM 09/30 USD 83.14 –42.1 –31.7 –15.5 Emerg AdvantEdge EUR OT OT JEY 08/29 EUR 102.09 –14.4 –5.8 NS 788 Japan Fund Ltd OT OT CYM 09/30 USD 38.51 –68.9 –63.5 –41.5 n HERMITAGE CAPITAL MANAGEMENT LTD. Europ AdvantEdge EUR OT OT JEY 08/29 EUR 133.01 –6.7 –5.5 2.1 Tel: +7501 258 3160 www.hermitagefund.com Europ AdvantEdge USD OT OT JEY 08/29 USD 138.64 –7.2 –5.6 2.9 Wachovia’s assets. n ALEXANDRA INVESTMENT MANAGEMENT The Hermitage Fund GL EQ JEY 10/03 USD 848.20 –52.4 –46.7 NS Japan AdvantEdge JPY OT OT JEY 08/29 JPY 8537.03 –9.1 –8.7 –9.3 Alexandra Global Inv I OT OT VGB 08/29 USD 48.85 –25.9 –18.6 –5.9 Japan AdvantEdge USD OT OT JEY 08/29 USD 99.02 –7.8 –5.9 –5.4 n OTHER FUNDS n HORSEMAN CAPITAL MANAGEMENT LTD. Lvgd Alpha AdvantEdge OT OT JEY 08/29 USD 122.02 –15.9 –9.5 0.7 For information about these funds, please contact us on Tel: +44 (0) 207 842 9694/9633 n ATLANTIC INVESTMENT MANAGEMENT - NEW YORK, NEW YORK T: +44(0)20 7838 7580, F: +44(0) 20 7838 7590, www.horsemancapital.com Trading AdvantEdge OT OT GGY 08/29 USD 141.03 4.8 21.6 16.2 Medinvest Plc Dublin OT OT IRL 08/29 USD 1396.95 –5.8 –0.5 5.8 [email protected] Tel: +1 212 484 5050 Horseman EmMkt Opp EUR GL EQ GBR 09/30 EUR 194.10 4.8 14.9 NS Trading AdvantEdge EUR OT OT GGY 08/29 EUR 127.62 4.5 20.2 14.6 lion in damages from Wachovia and AJR International A US EQ VGB 10/03 USD 825.51 –22.1 –21.1 0.8 Horseman EmMkt Opp USD GL EQ USA 09/30 USD 198.84 3.8 13.7 NS Trading AdvantEdge GBP OT OT GGY 08/29 GBP 133.66 6.2 22.9 16.7 Wells Fargo. Shares of the New York AJR International B US EQ VGB 10/03 USD 138.45 –22.1 –21.2 0.1 Horseman EurSelLtd EUR EU EQ GBR 09/30 EUR 211.98 18.0 24.7 27.4 US AdvantEdge OT OT JEY 08/29 USD 123.37 –2.4 2.4 5.2 Cambrian Asia Ltd. AS EQ VGB 10/03 JPY 6192.00 –36.6 –35.2 NS Horseman EurSelLtd USD EU EQ GBR 09/30 USD 219.00 16.5 23.2 27.9 bank fell when its bid was torpe- Cambrian Europe Ltd. EU EQ VGB 10/03 EUR 73.03 –30.2 –32.3 NS Horseman Glbl Ltd EUR GL EQ CYM 09/30 USD 433.28 15.5 16.0 32.3 doed. In a statement Thursday, Citi- Cambrian Fund Ltd. A US EQ VGB 10/03 USD 501.79 –41.8 –38.2 –10.7 Horseman Glbl Ltd USD GL EQ CYM 09/30 USD 433.28 15.5 16.0 32.3 Cambrian Fund Ltd. B US EQ VGB 10/03 USD 122.42 –41.8 –38.4 –11.5 group said its shareholders “have Rodinia Fund Ltd US EQ VGB 10/03 USD 113.22 –21.5 –21.4 –5.8 n HSBC ALTERNATIVE INVESTMENTS LIMITED T +44 20 7860 3074 F + 44 20 7860 3174 www.hail.hsbc.com n SUPERFUND ASSET MANAGEMENT GMBH been unjustly and illegally deprived HSBC Absolute Companies For information about open funds, please contact us on Tel: +43 1 24700 of the opportunity the transaction www.superfund.com *Closed for New Investments HSBC Absolute Companies n INTEGRATED ALTERNATIVE INVESTMENTS, TEL: +44 (0)20 75149200 created.” Euro Absolute OT OT GGY 08/29 GBP 1.53 –5.7 –4.7 2.8 Email: [email protected] - Website: www.integratedai.com Superfund Cayman* OT OT CYM 10/07 USD 65.56 37.7 70.2 26.3 Euro Absolute EUR OT OT GGY 08/29 EUR 2.15 –6.3 –5.4 1.1 Altipro OT OT FRA 10/02 EUR 247.76 –2.6 –2.3 2.4 Superfund GCT USD* GL EQ LUX 10/07 USD 3170.00 30.7 50.0 18.2 While Citigroup insisted pub- Global Absolute OT OT GGY 08/29 GBP 1.08 –3.5 0.1 6.1 Integrated Dir Trading EUR OT OT CYM 08/29 EUR 106.96 4.4 15.7 9.4 Superfund Gold A (SPC) GL OT CYM 10/07 USD 1009.00 14.8 48.0 29.8 licly that it still was willing to buy Global Absolute USD OT OT GGY 08/29 USD 2.00 –4.7 1.4 5.9 Integrated Emg Markets EUROT OT CYM 08/29 EUR 89.90 –14.4 –10.7 –0.6 Superfund Gold B (SPC) GL OT CYM 10/07 USD 1087.60 16.2 56.3 33.9 n CAPITAL MANAGEMENT ADVISORS n HSBC ALTERNATIVE STRATEGY FUND Integrated European EUR OT OT CYM 08/29 EUR 154.66 4.1 4.1 4.9 Superfund Q-AG* OT OT AUT 10/07 EUR 7785.00 20.4 31.9 14.8 most of Wachovia, people close to Phone Number: +1 441 295 59 29 Integrated Event Driven EUROT OT CYM 08/29 EUR 100.27 –6.5 –3.3 5.2 Special Opp EUR OT OT CYM 08/29 EUR 107.04 –4.4 0.7 NS CMA Dynamic OT OT BHS 08/29 USD 1563.70 –4.1 –3.4 3.4 Integrated Lg/Sh Sel F EUR OT OT CYM 08/29 EUR 93.70 –6.3 –3.6 4.8 n WEAVERING CAPITAL the company said that additional Special Opp Inst EUR OT OT CYM 08/29 EUR 100.53 –3.9 1.6 NS CMA MultHdge Arbtrge OT OT CYM 08/31 USD 1865.29 –3.4 –2.3 3.9 Integrated MultSt B EUR OT OT VGB 08/29 EUR 133.88 –4.1 0.3 3.6 Special Opp Inst USD OT OT CYM 08/29 USD 109.69 –4.0 1.9 NS www.weaveringcapital.com [email protected] T:+44(0)2073554720 due diligence uncovered questions CMA MultHdge Balncd OT OT CYM 08/29 USD 1349.81 –3.6 –2.1 3.0 Integrated Relative Value EUROT OT CYM 08/29 EUR 99.37 –1.1 0.2 3.8 Special Opp USD OT OT CYM 08/29 USD 108.44 –4.4 1.2 NS Weavering Macro F.I. Fd GL OT CYM 09/30 USD 178.17 8.1 12.5 13.5 CMA MultHdge Growth OT OT CYM 08/29 USD 1970.12 –0.2 0.7 4.9 that made executives uncomfort- n CMA MultiHdge Lvrgd OT OT CYM 08/29 USD 1324.29 –7.3 –8.4 3.2 n HSBC Portfolio Selection Fund KREDIETBANK LUXEMBOURG n WINTON CAPITAL MANAGEMENT LTD www.kbl.lu Fax : +352 47 97 73 911 able about proceeding with the GH Fund AP OT OT CYM 08/29 EUR 137.62 –2.8 3.9 8.9 Tel: +44 (0)20 7610 5350 Fax: +44 (0)20 7610 5301 KBL SPOP Investing OT OT LUX 08/31 EUR 2078.83 –5.7 –2.3 5.6 GH Fund CHF Hdg OT OT JEY 08/29 CHF 117.21 –4.4 0.3 4.5 Winton Evolution EUR GL OT VGB 09/30 EUR 1238.56 –1.0 4.1 9.1 deal. An important sticking point KBL SPOP Investing OT OT LUX 08/31 USD 2005.77 –6.0 –2.2 6.6 GH Fund EUR Hdg OT OT JEY 08/29 EUR 127.69 –3.3 2.3 6.5 KBL SPOP Long/Short Eq OT OT LUX 08/31 USD 543.52 –17.9 –10.0 NS Winton Evolution GBP GL OT VGB 09/30 GBP 1214.27 –0.5 5.1 10.3 was the valuation of Wachovia’s as- GH Fund EUR Hdg (Non-V II)OT OT JEY 08/29 EUR 113.35 –3.2 2.3 6.5 KBL SPOP Long/Short Eq OT OT LUX 08/31 EUR 536.69 –17.5 –10.0 NS Winton Evolution JPY GL OT VGB 09/30 JPY 109745.75 –4.5 –0.3 5.3 sets, particularly the bank’s large se- GH Fund EUR Hdg (Non-V) OT OT JEY 08/29 EUR 127.69 –3.3 2.3 6.5 Winton Evolution USD GL OT CYM 09/30 USD 1206.55 –1.6 3.6 9.6 GH Fund GBP Hdg OT OT JEY 08/29 GBP 139.76 –2.4 4.0 8.3 Winton Futures EUR GL OT VGB 09/30 EUR 185.04 9.0 14.5 16.3 curities portfolio. GH Fund Inst EUR OT OT JEY 08/29 EUR 97.98 NS NS NS Winton Futures GBP GL OT VGB 09/30 GBP 198.47 10.1 16.1 17.9 n CARLO SCEVOLA & PARTNERS GH Fund Inst JPY OT OT JEY 08/29 JPY 9643.52 –5.0 –0.2 NS Leading the negotiations for Citi- Winton Futures JPY Lead SeriesGL 2 OT VGB 09/30 JPY 13541.20 7.6 12.1 14.0 Tel +44 (0) 20 7419 5671 GH Fund Inst USD OT OT JEY 08/29 USD 113.92 –3.0 3.3 8.4 group were Edward Kelly, a top exec- www.rescgf.com GH FUND S EUR OT OT CYM 08/29 EUR 133.51 –2.3 3.6 7.8 Winton Futures USD GL OT VGB 09/30 USD 659.57 8.8 14.5 17.2 GH FUND S GBP OT OT CYM 08/29 GBP 138.36 –1.8 4.9 9.3 Resolute Capital Gth Fd OT OT VGB 09/30 USD 1232.97 9.7 14.5 11.0 n ZULAUF EUROPE FUNDS utive in Citigroup’s investment GH Fund S USD OT OT CYM 08/29 USD 152.09 –2.6 3.9 9.0 n D'AURIOL FUNDS WWW.DAURIOL.BIZ GH Fund USD OT OT GGY 08/29 USD 282.16 –3.5 2.6 7.7 n MERIDEN GROUP Phone: +353 1436 7200 Fax: +353 1672 5361 www.zulaufeurope.ky bank, and Gary Crittenden, Citi- 2 FUNDS OF FUNDS OF HEDGE FUNDS Hedge Investments OT OT JEY 08/29 USD 142.53 –2.9 3.0 7.8 Tel: + 376 741 175 Fax: + 376 741 183 Email: [email protected] Zulauf Europe Fd EUR OT OT CYM 10/03 EUR 140.56 –0.7 8.4 3.0 group’s chief financial officer. Citi- First in business worldwide D'Auriol Alt Non-Lev A EU OT CYM 08/29 EUR 121.66 –6.1 –1.9 3.6 Leverage GH USD OT OT GGY 08/29 USD 137.26 –10.0 –0.7 8.5 Antanta Combined Fund EE EQ AND 10/03 USD 322.26 –61.2 –60.2 –36.7 Zulauf Europe Fd LP OT OT CYM 03/31 USD 173.04 1.2 12.5 6.3 D'Auriol Opp F3 EUR EU MM CYM 08/29 EUR 1246.48 –9.0 –5.5 0.7 MultiAdv Arb CHF Hdg OT OT JEY 08/29 CHF 107.57 –5.7 –4.6 0.6 Antanta MidCap Fund EE EQ AND 10/03 USD 603.29 –66.7 –62.0 –27.2 Zulauf Europe Fd USD OT OT CYM 10/03 USD 294.98 –1.6 7.7 4.3 group Chief Executive Vikram Pan- dit made the final decision to aban- For information about listing your funds, please contact: Peter Jennings, tel: +44-20-7842-9674; email: [email protected] or Carson Wong tel: +852 2831-6481; email: [email protected] don the takeover talks, people close 8 MONDAY, OCTOBER 13, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. MONDAY, OCTOBER 13, 2008 25 FOCUS ON AUTOMOBILES THE INTERNATIONAL INVESTOR Cash-rich Japan GM, U.S. rivals held talks Global fears grip Europe and Asia offers bailout aid arm, Rescap, and expand the car- the free fall of the won by promising Chrysler discussions Big three decelerate lending business’s reach in a global Shares fall sharply, A world of hurt to resurrect the nation’s stock-mar- to other nations auto industry that was projected to ket stabilization fund and offering By John Murphy Share of total U.S. light-vehicle sales Performance of some major Asian and European stock-market indexes undone by market; grow rapidly. Cerberus was also hop- with Nikkei’s decline greater oversight of banks’ foreign- 40% ing that by delinking GMAC from Year-to-date Friday exchange trading. TOKYO—Japan’s finance minis- Ford spurned overture GM GM, the lending company’s credit biggest in 21 years The pan-European Dow Jones ter said his country—flush with rating would improve, lowering its –45.9% –9.6% Nikkei Stock Average /Japan Stoxx 600 index racked up its worst nearly $1 trillion in foreign-ex- 30 By Jeffrey McCracken, Ford cost of capital. By Yuka Hayashi ever weekly decline, losing 22% af- change reserves—is prepared to –39.1 –8.8 FTSE 100/U.K. John D. Stoll Chrysler, Auburn Hills, Mich., ter a 7.5% drop Friday to 205.13. help bail out nations running out of And Matthew Dolan 20 has been hit hard by the car indus- Investors remained concerned Chrysler Financial markets across Asia –37.5 –8.3 S&P/ASX 200/Australia funds amid the worsening global fi- try’s downturn and is losing money. and Europe fell sharply Friday as in- the emergency action taken by cen- nancial crisis. General Motors Corp. has been 10 Chrysler said its September sales vestors rushed out to raise cash, –43.4 –7.7 CAC 40/France tral banks around the globe as well Speaking at a meeting of the In- in discussions recently about acquir- Toyota fell 33% from a year earlier. GM fearing further deterioration in the as efforts by governments to prop ternational Monetary Fund’s policy sales fell 16%. –46.8 –7.2 Hang Seng/Hong Kong ing Chrysler LLC, according to peo- 0 financial system and the arrival of a up banking systems won’t be steering committee on Saturday, ple familiar with the matter. GM In recent quarters, the value of full-blown global recession. enough to prevent a deep and far- Japanese Finance Minister Shoichi 1990 2000 GMAC has fallen dramatically due –48.1 –7.1 Sensex 30/India also approached Ford Motor Co. in Toyota Japan, which so far weathered reaching economic recession. Nakagawa said Japan’s foreign ex- recent months about a possible Note: Excludes foreign affiliates; 2008 figure to exposure to subprime home the storm better than others, saw –43.7 –7.0 DAX/Germany Among national markets, the change reserves could be used to merger, but Ford called off the talks, is through September loans, car loans and leases. Its Rather then send idle workers home, Toyota is sending them to sharpen their skills the steepest drop in shares in the re- U.K.’s FTSE 100 Index slid 21% on support cash-strapped nations. according to a person directly famil- Source: Autodata bonds trade at 36 to 53 cents on the at training classes, such as this one at the auto maker’s Princeton, Ind., plant. gion. In the largest one-day decline Source: Thomson Reuters the week to 3932.06, its lowest close “If the [IMF] iar with the talks. dollar. Today the GMAC stake is val- since October 1987, the Nikkei Stock since May 2003. Germany’s DAX In- requires addi- The discussions signal the in- for the auto maker. Analysts and ued roughly at $6 billion to $7 bil- Average of 225 companies fell 9.6% dex lost 22% on the week to finish at tional resources, tense pressures mounting on the credit-rating services raised con- lion, people familiar with the mat- to close at 8276.43, 24% below demption requests from their inves- in these holdings when the Nikkei 4544.31. France’s CAC-40 Index also Japan stands U.S. auto industry to restructure cerns about the rate at which GM ter said. where it was at the beginning of the tors and individuals trading with dips below the 10000 mark. Among lost 22% on the week, ending at ready to supple- Cerberus said last month it is in Toyota shares labor ills, amid a deep slump in sales. and Ford are burning cash and of week. At one point Friday, the Ni- borrowed money were hit with mar- Japan’s top banks, Mizuho Finan- 3176.49. ment needed The upheaval in financial mar- their liquidity positions. Bank- talks with Daimler to buy that com- kkei was down 11%. gin calls. Others sold simply to cial Group saw its shares fall 12%, The European selloff was broad funds,” he said. kets has put the talks between GM ruptcy “makes absolutely no sense pany’s remaining 19.9% stake in Other markets world-wide fell avoid further losses. Lower volume while Mitsubishi UFJ Financial and indiscriminate, with German Such a move and Chrysler owner Cerberus Capi- to us,” Mr. Mulally said. Chrysler. Cerberus is expected to other woes with Detroit heavily as investor confidence exacerbated the rate of decline. Group was down 8.5%. utility E.On losing 10%, chemical gi- would send a life- keep Chrysler’s financing arm if a tal Management LLC on hold, the GM also said it isn’t considering wilted. Singapore’s market ended “Japan’s financial markets are in “Any way you look at it, stocks ant BASF off 10% and Spain’s line to countries deal does materialize, a person fa- people familiar with the matter filing for bankruptcy. By Kate Linebaugh trast, Toyota is using the down time down 7.3% as the island state be- total disarray,” said John Richards, have fallen to deeply discounted lev- Telefónica falling 9.1%. like Iceland, said, and it was unclear if a deal will miliar with the situation said. to hone its workers’ quality-control came the second Asian-Pacific coun- head of Asia research at the Royal els,” said Yoshinori Nagano, senior Banking stocks were particularly where the gov- On Friday, a person familiar with Investors might worry that by ac- happen. However, if markets stabi- PRINCETON, Ind.—For years, De- and productivity skills. The com- try after New Zealand to enter a re- Bank of Scotland in Tokyo. “There is strategist at Daiwa Asset Manage- hard hit. Deutsche Bank declined ernment’s ef- Shoichi the situation confirmed that Ford is quiring Chrysler, GM—whose stock lize, the talks could be renewed, exploring the sale of its controlling troit’s Big Three car makers have pany has pledged never to lay off cession this year, prompting its cen- a flight to cash and out of all risk as- ment. “Now everything depends on 16% in Frankfurt, Royal Bank of forts to bail out Nakagawa these people added. closed Friday at $4.89 a share in paid their workers even when they any of its full-time employees, who tral bank to ease monetary policy. sets, even bonds.” whether the authorities can take Scotland Group lost 24% in London the country’s stake in Mazda Motor Co. as part of New York Stock Exchange trading, Cerberus— a private-equity firm aren’t needed on the assembly line. are nonunion. Hong Kong fell 7.2%,India was down Awash with deposits but unable steps to stop the fear from spread- and UniCredit fell 13% in Milan. three biggest banks has pushed the an effort to shore up the U.S. auto down from a 52-week high of which owns 80.1% of Chrysler and This year, as the industry’s down- Jim Lentz, president of Toyota 7.1% and Australia tumbled 8.3%. to find enough corporate borrow- ing.” —Laura Santini, small nation to the edge of bank- maker’s finances. Other people fa- $43.20—would be getting more 51% of GMAC, an 89-year-old auto turn intensifies, Toyota Motor Motor Sales, the company’s U.S. London was down 8.8%, Frankfurt ers, many Japanese banks have in- Elsewhere in Asia, South Korea Rosalind Mathieson, ruptcy. miliar with the company’s plans troubled operations while it is try- lender that has been seriously weak- Corp. finds itself doing the same sales unit, said the company be- lost 7% and Paris declined 7.7%. vested heavily in stocks. Analysts ended down 4.1% even as its finan- Tom Wright, Tariq Engineer said it is part of a larger review of ing to fix its own problems. It would It would also be the latest evi- ened by its moves into mortgage thing. lieves keeping employees on the pay- In many markets, fear and panic say some banks begin to see a dent cial authorities moved to stem and Jeannie Clarke Ford’s assets. pick up the Chrysler, Jeep and dence of Japan’s rising global influ- banking—was central to the plan. Instead of sending the workers roll and using the time to improve ruled the day. Hedge funds faced re- in their earnings from depreciation losses in domestic shares and halt contributed to this article. GM, burning through $1.2 billion Dodge brands and their dealers ence during the deepening eco- Cerberus proposed a swap in which home, as the Detroit makers often their capabilities is the best move in in cash a month, had planned to while it is trying to shed nameplates nomic turmoil. Japanese banks have GM would acquire Chrysler and give do, Toyota is keeping them at the the long run. “It would have been raise billions in secured financing and dealers of its own. It would also come to the rescue of some of Ameri- Cerberus its remaining 49% stake in plants. The employees spend their crazy for us to lose people for 90 by pledging various unencumbered be even more reliant on North Amer- ca’s largest financial institutions. GMAC, these people said. days in training sessions designed days and [then] to rehire and re- assets as collateral for loans. GM ex- ica, where sales have tumbled by Mitsubishi UFJ Financial Group is Uniting two of the Big Three U.S. to sharpen their job skills and find train people and hope that we have ecutives were planning on making a double digits this year. GE’s profit tumbles 22% as finance unit is hit set to acquire 21% of Morgan Stan- auto makers would prove a water- better ways to assemble vehicles. a smooth ramp-up coming back in,” pitch to banks and other potential Over the past 14 months, ley. Nomura Holdings Inc. has ac- shed for an industry knocked down The Toyota plant here in south- Mr. Lentz said. By Paul Glader The results were greeted with re- credit markets. 6.46% from 5.16% a year ago. That lenders after Labor Day, a person fa- Chrysler has backed away from quired some of the Asian, European by high production costs and a loom- western Indiana and another in San In Princeton, senior plant man- lief by investors who, before Friday, GE said it had reduced its reli- primarily reflects GE’s private-label miliar with the matter said. But GM many capital-intensive projects—in- and Middle East operations of Leh- ing recession. GM sees as much as Antonio, Texas, stopped making ager Norm Bafunno said he can al- General Electric Co., reporting had driven GE shares down 25% this ance on short-term loans, or com- credit-card business, which it is try- found it was locked out of getting af- cluding building new component man Brothers Holdings Inc. $10 billion in possible cost-cutting pickup trucks at the beginning of Au- ready see the benefits of the train- third-quarter results, said demand month alone. GE shares were ahead mercial paper, to $88 billion at the ing to sell. Delinquency on GE’s fordable loans, forcing the company plants and developing several new If Japan’s proposed bailout plan if a deal were to come together, said gust. About half of the 4,000 work- ing. Mr. Bafunno cites a Teflon ring remains strong for its industrial 13% at $21.50 in 4 p.m. composite end of the third quarter, from $97 mortgages, almost all outside the to rev up activities related to evalu- cars and trucks. As a result, is successful in stemming global fi- a person familiar with its thinking. ers are expected to resume making designed by an assembly worker products, while credit conditions trading on the New York Stock Ex- billion for the prior quarter. Mr. Im- U.S., rose to 9.28%, from 7.23% a ating strategic alternatives, this per- Chrysler has been able to hoard nancial hemorrhaging and stabiliz- GM, based in Detroit, declined to vehicles in November, and now Toy- during the down time that helps pre- have eased slightly for its big fi- change. melt said GE has had no problems year ago. In the U.K., the rate hit son said. cash despite falling sales and pro- ing overseas markets, it would help comment on the Chrysler or Ford ota says the rest won’t likely be back vent paint damage when employees nance unit. GE “seems to be on its way to re- placing these loans and that condi- 17.83%, up from 13.31%. duction in its core U.S. market. boost Japan’s flagging export- discussions specifically. “As we’ve GM’s recent talks with the other on the assembly line until at least install an electrical switch on the GE’s results met its reduced fore- storing some confidence,” wrote tions had improved since the Fed- Profit at GE’s energy-infrastruc- auto makers represent the second GM is expected to announce more driven economy. often said, GM officials routinely dis- production capacity cuts in coming April. edge of a vehicle’s door. cast of two weeks ago. The Fairfield, Morgan Stanley analyst Scott Davis. eral Reserve announced it would ture unit, which makes power tur- time in about two years that GM has Money for a rescue plan could be cuss issues of mutual interest with weeks, likely focusing on closing Toyota is “facing a significant In the past, the drill used to in- Conn., conglomerate said Friday “We have done a good job pro- buy commercial paper from non- bines, rose 31% to $1.43 billion; talked to Ford and Chrysler about drawn from Japan’s vast foreign-ex- other auto makers,” GM spokesman plants that stamp auto parts or build lack of production work for a signifi- stall the switch could slip and dam- net income fell 22%, to $4.31 billion, tecting the company” during vola- banks. profit at its technology-infrastruc- merging. Shortly after Daimler AG change reserves, which totaled $954 Tony Cervone said. Representatives engines and transmissions. The GM- cant number of workers,” said Sean age the paint, affecting two or three or 43 cents a share, from $5.56 bil- tile economic conditions, Chief Exec- Mr. Immelt said the moves give ture unit, which makes aircraft en- put Chrysler up for sale in February billion at the end of the year. Japan for Cerberus, GMAC and Chrysler de- Cerberus talks were put on the back McAlinden, an economist at the Cen- vehicles each shift. These vehicles lion, or 54 cents a share, a year ear- utive Jeffrey Immelt told investors. “us the opportunity to play offense gines, locomotives and health-care 2007, GM discussed acquiring the clined to comment. burner in the last couple days amid ter for Automotive Research. He es- would fail quality inspection and lier. Revenue rose 11% to $47.23 bil- “We’re going to go into some in this market should conditions al- equipment, rose 2% to $1.9 billion. has the world’s second-largest re- auto maker, but Cerberus made a In the case of the Ford talks, GM’s share-price drop and the over- timates the wage cost of idling the have to go through another process lion. choppy weather in the global econ- low.” The credit crunch is thwarting serve after China’s $1.54 trillion, ac- more attractive offer. which took place earlier than the all market instability, two people fa- assembly lines at the two plants at to buff the scratches, hurting the GE’s results were weighed down omy, but the company is set up to Chief Financial Officer Keith Mr. Immelt’s plan to reshape GE’s cording to the U.S. Central Intelli- GM-Chrysler discussions, Ford Financial conditions have gotten miliar with the matter said. $35 million a month. plant’s overall efficiency numbers. by the finance unit, where profit fell outperform our peers.” Sherin said GE could look to acquire portfolio, including jettisoning its gence Agency’s World Factbook. called off the talks after the Dear- the better of Cerberus, which origi- An individual involved in the For most of this decade, Toyota Coming up with tweaks like this 33%, to $2.02 billion, also in line GE, considered an economic bell- assets, perhaps from distressed appliance and light-bulb units. Earn- Providing money for a global bail- born, Mich., company concluded it nally viewed its investments in talks described them as “recent, fre- was on a roll in the U.S., gobbling up is known at Japanese companies as with the reduced forecast. The wether, said it is on track to earn banks, to add to its core commercial ings at the consumer and industrial out plan would help end a longstand- should continue to go it alone, ac- GMAC and Chrysler as relatively quent and serious.” This person market share from the Big Three, kaizen, meaning continuous im- unit’s revenue rose 1.8%. Within the over $20 billion for the year, includ- finance business. business, which includes the light- ing debate over how Japan should cording to the person familiar with low-cost paths to owning some of added those talks could resume racking up huge profits and expand- provement. This is what manage- division, profit fell 62% in the real- ing about $9 billion at the finance Still, GE’s finance unit is far from ing and appliance units, plunged put its huge foreign reserves to use. the talks. GM’s talks with Ford were the country’s biggest brand names. soon, since GM is focused on shed- ing into Detroit’s traditional turf: ment hopes to extract from the estate group, 57% for commercial unit. GE has taken several steps in re- out of the woods. The delinquency 82% as revenue dipped 5.5%. Some politicians have criticized the "very loose and preliminary, more In 2006, it agreed to buy a major- ding its 49% stake in GMAC given big trucks and sport-utility vehicles. months of down-time training: bet- lending and leasing and 17% at the cent weeks to strengthen its capital rate among its North American con- —Donna Kardos government for failing to invest the exploratory in nature than anything ity stake in GMAC for $14 billion, the negative impact the once-profit- But with the industry in a slump and ter quality and productivity when consumer-finance business. position and reduce exposure to the sumer-finance customers rose to contributed to this article. funds more aggressively. else,” a person briefed on the mat- hoping to ride momentum at able finance arm is having on GM’s high gas prices sending consumers production resumes. ter said. GMAC’s then-profitable mortgage balance sheet. to smaller vehicles, Toyota is suffer- Throughout the factory, workers Ford spokesman Mark Truby ing some of the same ills as General sit in classrooms, repaint hazard ar- Advertisement [ INTERNATIONAL INVESTMENT FUNDS www.WSJ.com ] Advertisement said “It’s not our practice to talk Motors Corp., Ford Motor Co. and eas bright yellow, lift weights, com- Continued from previous page NAV — %RETURN — NAV — %RETURN — NAV — %RETURN — about private discussions with oth- Chrysler LLC, which is owned by Cer- plete dexterity drills and get 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 ers.” GM and Ford have a joint ven- berus Capital Management LP. steeped in Toyota’s corporate phi- NAV — %RETURN — Ford weighs sale of Mazda stake FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR n DJE INVESTMENT S.A. Sel Euro Equity EUR US EQ GGY 10/09 EUR 85.54 –41.5 –46.0 –21.3 ture involving six-speed transmis- Toyota is stuck with excess manu- losophy. internet: www.dje.lu email: [email protected] phone:+00 352 269 2522 0 fax:+00 352 269 25252 Sel European Equity EU EQ GGY 10/09 USD 154.91 –45.4 –47.7 –18.1 sions and have talked about expand- By John Murphy A spokesperson for Ford Asia Pa- facturing capacity, unsold pickups Near one idle line, assembly DJE Real Estate P EU BA LUX 10/10 EUR 10.21 0.4 0.2 2.1 Sel Glob Equity GL EQ GGY 10/09 USD 154.78 –43.3 –47.9 –20.2 And Matthew Dolan DJE-Absolut P GL EQ LUX 10/10 EUR 185.48 –26.5 –25.1 –7.0 Sel Glob Fxd Inc GL BD GGY 10/09 USD 130.78 –10.9 –9.0 –2.7 ing that partnership to include pow- cific declined to comment, saying and SUVs, and a dimmer financial worker Bob Mason sat with four oth- DJE-Alpha Glbl P EU BA LUX 10/10 EUR 159.30 –22.1 –20.3 –5.1 Sel Pacific Equity AS EQ GGY 10/09 USD 101.70 –42.3 –44.7 –7.9 DJE-Div& Substanz P GL EQ LUX 10/10 EUR 175.74 –26.3 –27.8 –7.1 Sel US Equity US EQ GGY 10/09 USD 102.35 –40.0 –43.7 –18.9 ertrains, according to people famil- that the company doesn’t talk pub- outlook. Its U.S. sales fell by a third ers employees around a table look- n DJE-Gold&Resourc P OT EQ LUX 10/10 EUR 131.27 –30.0 –30.3 –7.3 HERITAGE FUND MANAGEMENT Sel US Sm Cap Eq US EQ GGY 10/09 USD 135.26 –41.5 –48.1 –23.0 Ford Motor [email protected] www.heritagefunds.ch iar with the discussions. TOKYO— Co. is ex- licly about possible asset sales. in September from a year ago, as ing at a flip chart with Power Point n BANC INTERNACIONAL D'ANDORRA. BANCA MORA. DJE-Renten Glbl P EU BD LUX 10/10 EUR 117.80 –3.5 –3.7 –0.7 LuxPro-Dragon I AS EQ LUX 10/10 EUR 90.22 –50.1 –53.7 –5.4 HF-China Abs Ret OT OT CHE 10/09 CHF 67.80 –55.1 –54.1 –17.5 n KREDIETBANK LUXEMBOURG Ford Chief Executive Alan Mula- ploring the sale of its controlling Mazda said it wasn’t aware of sales of its Tundra pickup plunged printouts on it. The employees went Avgd. Meritxell 96, Andorra la Vella. Andorra. Ph. +376.884884 www.bibm.ad LuxPro-Dragon P AS EQ LUX 10/10 EUR 88.36 –51.1 –54.7 –6.4 HF-World Bds Abs Ret OT OT CHE 10/09 USD 85.80 –6.0 0.1 0.7 Andfs. Anglaterra UK EQ AND 10/09 GBP 6.36 –32.8 –34.2 –15.0 www.kbl.lu Fax : +352 47 97 73 911 lly didn’t discuss mergers or asset stake in Japan’s Mazda Motor Co. as plans by Ford to sell its stake. “We 61%. In the quarter ended June 30, through a problem-solving module LuxTopic-Aktien Europa EU EQ LUX 10/10 EUR 14.16 –26.6 –25.0 –6.5 DSF 25/75 EU BA LUX 10/09 EUR 296.55 –17.8 –18.9 –8.7 Andfs. Borsa Global GL EQ AND 10/09 EUR 6.09 –36.4 –38.7 –17.0 LuxTopic-Pacific AS EQ LUX 10/10 EUR 12.12 –43.6 –45.6 –11.5 sales in an interview but said that a part of an effort to shore up its fi- have not announced anything, and global profit at the Japanese com- based on a technique in Toyota’s pro- Andfs. Emergents GL EQ AND 10/09 USD 11.02 –48.1 –48.6 –10.6 DSF 50/50 EU BA LUX 10/09 EUR 223.21 –24.8 –27.2 –12.4 Andfs. Espanya EU EQ AND 10/09 EUR 11.47 –35.0 –33.1 –13.7 n EAST CAPITAL DSF 75/25 EU BA LUX 10/09 EUR 171.69 –31.6 –34.9 –16.8 bankruptcy filing is not an option nances amid a downturn in global nothing has been decided,” a Mazda pany fell 28%. duction system. Andfs. Estats Units US EQ AND 10/09 USD 13.39 –34.0 –34.4 –13.5 KBC Eq (L) Europe EU EQ LUX 10/09 EUR 447.45 –41.1 –45.0 –21.8 auto sales and questions about the spokesman said. “We have nothing At GM, Ford and Chrysler, work- “This was a really good idea,” Andfs. Europa EU EQ AND 10/09 EUR 6.81 –38.6 –40.2 –17.8 KBC Eq (L) Japan JP EQ LUX 10/09 JPY 17779.00 –39.8 –47.4 –27.0 company’s cash reserves, according Andfs. Franca EU EQ AND 10/09 EUR 8.54 –39.3 –41.8 –20.4 KBC Eq (L) NthAmer EUR US EQ LUX 10/09 EUR 472.79 –38.6 –42.0 –18.1 to disclose.” ers effectively are paid for not work- Mr. Mason said of the training ses- Andfs. Japo JP EQ AND 10/09 JPY 451.60 –41.5 –48.6 –25.4 n KBC Eq (L) NthAmer USD US EQ LUX 10/09 USD 670.47 –38.5 –41.5 –16.7 n WEBSITE: www.eastcapital.com HERMES FINANCIAL MANAGEMENT (EGYPT) LIMITED, [email protected] to a person familiar with the matter. The tie-up between the two ing when their assembly lines are sions. “Once you get out on the line, Andfs. Plus Dollars US BA AND 10/09 USD 8.69 –18.8 –19.8 –7.3 Tel: 9714 363 4041 *Middle East & Developing Africa Fund KBL Key America EUR US EQ LUX 10/08 EUR 357.72 –38.8 –40.8 –15.7 Andfs. RF Dolars US BD AND 10/09 USD 10.32 –8.9 –9.0 –3.2 Ph: +46 (0) 8 505 88 505, Fax: +46 (0)8 505 88 508 EFG-Hermes Egypt GL EQ BMU 08/31 USD 51.70 –19.6 1.5 21.8 KBL Key America USD US EQ LUX 10/08 USD 368.44 –39.0 –40.7 –14.4 Executive Travel Program It was unclear how much of auto makers dates to 1979. Mazda idle, under terms of union con- I don’t want to say we veer off, but Andfs. RF Euros EU BD AND 10/09 EUR 9.35 –15.3 –16.5 –8.8 (Lux) E Eur ConvgnceEUR EE EQ LUX 10/10 EUR 48.38 –55.9 –59.1 NS EFG-Hermes MEDA* GL EQ BMU 08/31 USD 33.67 –7.0 17.9 22.4 KBL Key East Europe EU EQ LUX 10/08 EUR 1576.64 –53.6 –52.7 –21.2 Andorfons EU BD AND 10/09 EUR 12.86 –15.9 –17.8 –9.9 (Lux) E Eur ConvgnceUSD EE EQ LUX 10/10 USD 50.35 –59.3 –60.8 NS Ford’s 33.4% interest in Mazda and Ford operate a number of joint tracts. If a plant is shut temporarily, we veer off. This has really brought EFG-Hermes Saudi Arabia EquityEA EQ SAU 10/07 SAR 6.40 NS NS NS KBL Key Eur Sm Cie EU EQ LUX 10/08 EUR 771.32 –43.7 –49.7 –22.3 Guests and clients of 320 leading Andorfons Alternative PremiumOT OT AND 07/31 EUR 112.49 –3.1 –2.6 2.3 (Lux) Russian EUR EE EQ LUX 10/09 EUR 50.27 –55.8 –54.5 NS EFG-Hermes Telecom OT EQ BMU 08/31 USD 31.61 –17.5 –8.7 12.0 KBL Key Europe EU EQ LUX 10/08 EUR 548.04 –37.9 –41.7 –18.9 hotels and car rental agencies would be up for grabs. But the per- ventures around the globe, includ- as some were this summer, workers everyone back to square one.” Andorfons Mix 30 EU BA AND 10/09 EUR 8.76 –24.4 –26.0 –12.2 (Lux) Russian USD EE EQ LUX 10/09 USD 52.67 –58.9 –55.8 NS KBL Key Far East AS EQ LUX 10/08 USD 977.16 –48.8 –51.5 –13.5 n HSBC ALTERNATIVE INVESTMENTS LIMITED receive The Wall Street Journal son said Ford is looking at a broad ing the Auto Alliance Interna- receive most of their pay but don’t Mr. Mason, a 40-year-old former Andorfons Mix 60 EU BA AND 10/09 EUR 8.88 –32.6 –33.9 –15.2 Balkan Fund EE EQ SWE 10/10 SEK 13.26 –60.2 –61.8 –22.0 KBL Key Major Em Mkts GL EQ LUX 10/08 USD 389.54 –58.1 –55.9 –13.9 Baltic Fund EE EQ SWE 10/10 SEK 44.11 –40.1 –45.1 –16.0 T +44 20 7860 3074 F + 44 20 7860 3174 www.hail.hsbc.com KBL Key NaturalRes EUR OT EQ LUX 10/08 EUR 379.55 –38.9 –38.8 NS Europe daily, courtesy of n CHARTERED ASSET MANAGEMENT PTE LTD - TEL NO: 65-6835-8866Eastern European Fund EU EQ SWE 10/09 SEK 27.70 –49.4 –48.9 –15.7 range of asset sales in advance of sub- tional plant in Flat Rock, Mich., have to show up. A few attend com- firefighter, added: “One of the major HSBC Portfolio Selection Fund KBL Key NaturalRes USD OT EQ LUX 10/08 USD 394.22 –42.9 –40.6 NS Fax No: 65-6835 8865, Website: www.cam.com.sg, Email: [email protected] Russian Fund EE EQ SWE 10/09 SEK 814.50 –53.4 –50.7 –18.4 Sel Emerg Mkt Debt GL BD GGY 10/09 USD 256.91 –17.6 –16.6 –4.8 addictlab.comTM stantial losses expected when the where Mazda produces its Mazda6 pany-paid classes to learn new as- things that everyone is grateful for CAM-GTF Limited AS EQ MUS 10/03 USD 183981.50 –29.5 –31.4 –4.8 Turkish Fund EE EQ SWE 10/10 SEK 4.87 –57.5 –58.4 –19.6 Sel Emerg Mkt Equity GL EQ GGY 10/09 USD 142.05 –47.5 –48.1 –11.1 Please turn to next page global creative think tank U.S. auto maker releases its third- sedan and Ford makes the Mus- sembly skills. is that they thought enough of us to quarter results later this month. tang. At its Princeton plant, by con- keep us here.” For information about listing your funds, please contact: Peter Jennings, tel: +44-20-7842-9674; email: [email protected] or Carson Wong tel: +852 2831-6481; email: [email protected] 24 MONDAY, OCTOBER 13, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. MONDAY, OCTOBER 13, 2008 9 THE INTERNATIONAL INVESTOR CORPORATE NEWS GLOBAL BUSINESS BRIEFS

Hypo Real Estate Holding AG X5 Retail Group NV FUND SCORECARD Pohle is interim chairman X5 Retail Group NV reported a China Equity after Viermetz’s resignation surge in third-quarter revenue but Fears snare Swiss banks Intel’s outlook is awaited cut its capital-expenditure and store- Funds that invest at least 75% of equity assets in Chinese companies, and less than 10% in German commercial-property openings forecasts amid the continu- lowest in Europe. In addition, Ms. talized compared with their global Taiwan. At least 75% of total assets are invested in equities. Ranked on % total return (divi- lender Hypo Real Estate Holding ing economic crisis. The Russian re- Government voices Widmer-Schlumpf canceled a competitors. dends reinvested) in U.S. dollars for one year ending October 10, 2008 Third-quarter results AG said Friday that the chairman of tailer said revenue at X5-managed planned trim to the International In addition, Ms. Widmer- Leading 10 Performers its supervisory board resigned, fol- stores climbed 48% to $2.18 billion as support for UBS Monetary Fund’s annual meeting in Schlumpf said in a newspaper inter- FUND FUND LEGAL % Return in $US ** won’t reveal impact lowing the departure earlier in the the company opened 36 new stores. Washington so she could stay in view Friday that Switzerland RATING NAME FUND MGM'T CO. CURR. BASE YTD 1-YR 2-YR 5-YR week of its chief executive. The com- The retailer said like-for-like sales and Credit Suisse closer touch with the banking regu- doesn’t “depend solely on UBS and 3 Aberdeen Aberdeen Asset Mgt SGDiSingapore –44.30 –43.25 –5.47 9.48 of financial crisis pany said Kurt Viermetz’s deputy, forecasts remain largely unchanged, lator and the central bank. Credit Suisse.” Local banks, such as China Opport SGDAsia Ltd. Klaus Pohle, will take over the chair- but trimmed its 2008 capital-expendi- By Anita Greil The moves reflect the impor- the Raiffeisen banks and the state- By Don Clark man’s job on an interim basis. Mr. Vi- NS FIVV-Aktien-China-Select-UIUniversal-Investment EURiGermany –42.29 –44.13 7.30 NS ture plans to $1 billion from $1.4 bil- tance to Switzerland’s economy of backed cantonal banks, as well as Acc GmbH ermetz is also supervisory-board lion and said it would add 120,000 It took longer than many ex- the banking industry in general and private banks that manage the Intel Corp. kicks off a slew of chairman of Deutsche Börse AG, square meters of net selling space NS Flexifund Eq Fortis Investments EURiLuxembrg –45.49 –44.91 NS NS pected, but last week the financial UBS and Credit Suisse in particular. wealth of rich clients, play a stabiliz- earnings reports from technology where a shareholder, The Chil- rather than the 140,000 square Small Caps China(BE) A I Acc market’s crisis finally caught up The financial-services industry con- ing role, she said. companies on Tuesday, at a time dren’s Investment Fund, has been meters to 160,000 square meters it with Switzerland. tributed 11.4% to gross domestic Until the past two days, Swiss of- NS GAM Star GAM Fund USDiIreland –41.13 –45.92 NS NS when the microchip maker’s execu- calling for his ouster. Earlier this forecast earlier. Russia is struggling Worsening economic turmoil product in 2007 and employed 5.9% ficials had long been remarkably China Equity - USDManagement Acc Limited tion has seldom looked stronger— month, the German government through a financial crisis that has and aggressive moves by other Euro- of the country’s work force. quiet about how they plan to safe- NS JPMorgan JPMorgan Asset GBPiUnited Kingdom –44.93 –48.33 2.74 8.20 and fears about what could happen helped put together a Œ50 billion seen stock prices tumble and the bank- pean countries to shore up their Credit Suisse has weathered the guard their banking industry. In Chinese IT ORD Management (UK) Limited to technology demand have seldom ($67 billion) rescue package for ing system grind to a halt. Tighter own banking systems forced the credit crisis relatively well for an ac- that vacuum, Swiss savers this week NS Pru IOF Prudential Asset USDiLuxembrg –47.52 –49.31 5.33 NS loomed larger. Hypo Real Estate. The company an- credit conditions have prompted country, long a symbol of banking tive investment bank. It’s shares took their fortunes into their own China Equity Inc Mgt (Singapore) The Silicon Valley giant, after nounced the resignation of Chief Ex- many companies to reduce expansion safety and discretion, to express have fallen about 50% in the past hands and started opening accounts NS Santander Santander Asset EURiSpain –46.89 –49.35 NS NS righting itself from a series of stum- ecutive Georg Funke on Tuesday. It plans and will affect demand as banks fresh support for bank depositors year, less than those of many com- at state-backed banks in record num- bles several years ago, is riding one has tapped Axel Wieandt to succeed scale back consumer loans.

China FI Acc Management Dusan Petricic and creditors. petitors. UBS, on the other hand, bers to spread their wealth across of its strongest product lineups in Mr. Funke. 2 AMC EXPERT Gérifonds S.A. CHFiSwitzrlnd –45.98 –49.75 –6.01 4.45 On Thursday, economics Minis- has suffered more than $40 billion several institutions. It’s still unclear years. Intel microprocessors serve not be hurt badly, there is intense in- put off upgrading laptop or desktop Fund Chinac A Soco International PLC ter Doris Leuthard said for the first in losses, among the worst of any how much higher the deposit-pro- as the calculating engines for most terest in what Intel and other tech systems. Consumer confidence is MOL Nyrt. time that the government wouldn’t bank, due to an ill-timed rush into tection cap may be raised. 4 DWS China Eq Deutsche Asset Mgt USDiSingapore –49.46 –50.00 9.06 NS personal computers; the Santa companies will say about the fourth widely believed to be weakest in the Oil explorer Soco International allow the big banks UBS AG or mortgage-related debt. Switzerland’s economic trend is A-USD (Asia) Clara, Calif., company has done par- period—traditionally the busiest U.S. and Europe, but “it appears Hungarian oil company MOL PLC confirmed it had received an ap- Credit Suisse to fail. The next day, UBS got lucky, however, as its negative, with exports weakening, NS BBVA Bolsa BBVA Asset EURiSpain –47.98 –50.09 NS NS ticularly well in portables, which re- for electronics makers. that even the emerging markets are Nyrt. is close to gaining majority proach from a potential buyer of the interim Finance Minister Eveline losses piled up early in the crisis, said Karsten Linowsky, economist at China FI Acc Management cently began to outsell desktop “The real question is what kind starting to slow down,” says Edwin ownership in Croatian oil monop- majorityofitsassetportfolio—widely Widmer-Schlumpf said the govern- forcing it to raise capital at a time Credit Suisse in Zurich. But Swiss NOTE: Changes in currency rates will affect performance and rankings. Source: Morningstar, Ltd models on a global basis. Now Intel of guidance they give, what do Mok, an analyst at Needham & Co. oly INA after snatching up shares believed to be its Vietnam operations. ment may raise its guarantee on de- when it was still possible for banks consumers didn’t overspend to the KEY: ** 2YR and 5YR performance is annualized 1 Oliver’s Yard, 55-71 City Road they say about the future,” says NA-not available due to incomplete data; London EC1Y 1HQ United Kingdom is trying to expand by promoting Finally, people who do purchase sold by Croats spooked by the glo- Market speculation pointed to Chi- posits beyond the current 30,000 to do so. As a result, both it and degree of their U.S. counterparts, and NS-fund not in existence for entire period www.morningstar.co.uk; Email: [email protected] low-end laptops called netbooks Dan Warmenhoven, chairman and computers may gravitate in 2009 to- bal financial crisis. MOL now holds nesestate-ownedoiltraderSinochem Swiss francs ($26,600), among the Credit Suisse remain very well capi- unemployment remains very low. Phone: +44 (0)203 107 0038; Fax: +44 (0)203 107 0001 and new pocket-sized devices for chief executive of NetApp Inc., a ward netbooks, which use a chip 47.15% of INA and is in talks to buy Corp. as the possible buyer. After a re- surfing the Web, all powered by In- Sunnyvale, Calif., maker of data- called Atom that costs about $30, more from the Croatian govern- port in the Daily Telegraph Thursday, tel chips. storage systems. compared with chips that cost $100 ment, which owns 45%. The rest is London-listed Soco confirmed it had But the Wall Street meltdown— An Intel spokesman declined to to $150 for conventional laptops owned by small shareholders. INA been in talks with various parties that Commodity importers rush which has lopped off a third of In- comment. But analysts see several and carry larger profit margins, ar- is one of Croatia’s most profitable had resulted in a preliminary ap- PCCW halts sale of stake in unit tel’s market capitalization since the bearish scenarios. gues Vijay Rakesh, an analyst at companies. Two years ago thou- proach. Soco was approached by Si- beginning of September, a $43 bil- Some companies are likely to put ThinkPanmure who put a “sell” rat- sands of Croats bought shares nochem about a deal at £24 ($40.93) a By Rick Carew cause of deals by cashed-up Asian for U.S. debt guarantees lion downward swing—has put a off upgrading server systems to ing on Intel’s stock Friday. “We be- when the government sold 17% of share, the report said. Midcap oil ex- DAILY SHARE PRICE companies trying to expand their question mark over the entire tech take advantage of faster Intel chips. lieve Intel is heading into a perfect the company. MOL had bought 25% plorers are seen as vulnerable to take- HONG KONG—PCCW Ltd., Hong PCCW global footprints and as companies By Bill Tomson Oct. 1), but the whole sum was sector. While Intel’s numbers for Meanwhile, consumers reading the storm in 2009,” Mr. Rakesh wrote in in 2003, and in September offered overapproachesfromlargeoilcompa- Kong’s dominant fixed-line tele- Friday’s close: HK$2.80, down 9.7% like PCCW tried to bring in strategic snapped up within three days. The the quarter ended Sept. 30 might negative headlines may decide to a research note. to buy more at 2,800 kunas ($550) a nies following a fall in the price of oil phone operator, has dropped plans Year-to-date change: down 40% partners. The U.S. Department of Agricul- fiscal 2008 total was $40 million. share. At the time, many said the and a drop in their share price. Soco, to sell a big stake in its media and But turmoil in global credit mar- ture on Oct. 6 made available $3.5 “Last year, the commercial price was too low. But as the shares’ which operates in Vietnam, Thailand telecommunications assets after re- HK$6 May 29:PCCW billion worth of credit guarantees to banks in Mexico were very liquid,” kets has prompted many banks to value began dropping last week, andAfrica,saidtherewasnocertainty ceiving bids from private-equity announces plans to sell help importers in countries like Rus- Mr. Miller said. “They had access to a deal would take place. 45% stake in HKT unit hoard cash and raise the cost of people stood in long lines to sell buyers that weren’t “sufficiently at- sia and Mexico buy U.S. commodi- money. They had money to lend to their shares. 5 their loans. That is having a big im- TUI to sell stake in Hapag-Lloyd tractive.” ties such as wheat, rice and poultry. their clients...and there was very lit- pact on private-equity companies By Mike Esterl Singapore Press Holdings Following a board meeting Sun- And by Friday, importers had al- tle need or desire to use the...pro- The German company made a ternational AG, earlier confirmed British Energy Group PLC day, the company said in a state- 4 Sept 12: PCCW and other investors that frequently ready snatched up $1.9 billion of gram. It was viewed as an unneces- push into tourism last year when it belonging to the consortium. Singapore Press Holdings Ltd. says HKT unit buyer use leverage to boost their returns. ment it chose to stop the auction will get priority on that, as the global credit crisis sary, additional cost. That situation FRANKFURT—German conglom- agreed to take over U.K.-based First The sale comes amid a slowdown British Energy Group PLC, the said full-year net profit fell 12% be- dividend payments The plunge in global stock markets pinches liquidity. certainly has changed as a result of erate TUI AG agreed to sell a major- Choice Holiday PLC, merging it into in the global economy that is being process because “the recent market 3 U.K.’s largest power producer, said cause of lower net income from invest- downturn has significantly im- is also depressing valuations, dis- Allocations for Russia, Eurasia, the current turmoil in the financial ity stake in its maritime shipping TUI Travel to forge Europe’s largest felt in the shipping industry, cooling work is behind schedule on two of ments and an impairment charge. Net pacted the offers received.” couraging sellers who had hoped to the Caribbean, Central America, markets.” unit Hapag-Lloyd to a Hamburg- travel group with nearly Œ20 billion investor interest in Hapag-Lloyd. the four nuclear reactors at its for the year ended Aug. 31 was 437.4 The bidders submitting offers by 2 earn more from the sale of their as- Mexico and South The credit crisis, according to based consortium for about Œ2.45 in annual revenue. TUI, which cur- NOL said Friday it made an offer Hartlepool and Heysham Stage 1 million Singapore dollars (US$295.2 Saturday’s deadline were Bain Capi- JJFMAAM JSO sets. PCCW’s offer is part of a stra- COMMODITIES America are com- Jay O’Neil, an agriculture econo- billion ($3.29 billion). rently has a 51% stake in TUI Travel, for Hapag-Lloyd that “addressed power stations. However, the de- million), compared with S$499.1 mil- tal Partners LLC, MBK Partners LP, Sources: Thomson Reuters Datastream (share tegic restructuring of the company pletely gone, USDA mist at Kansas State University, TUI also said it might buy shares said Sunday it will explore using the challenging market conditions lays are expected to have limited lion a year earlier. Revenue rose 12% TPG, Providence Equity Partners price); WSJ reporting rather than a distressed sale, mean- MARKETS General Sales Man- could keep some importers from get- in U.K.-listed TUI Travel PLC it the Hapag-Lloyd sale proceeds to facing the container-shipping in- impact on the Scotland-based com- to S$1.3 billion. The company re- Inc., Apax Partners and Macquarie ing it didn’t face pressure to sell ager Kirk Miller ting the commodities they need. doesn’t already own to focus on tour- buy the remainder of the tourism dustry” and that it would now fo- pany, since it has accepted a take- corded total investment income of Group Ltd., according to people fa- rapidly. said. Importers can use the credit if “This year the U.S. dollar is stron- ism. unit. cus on navigating through a “down- over bid from Électricité de S$47.7 million for the fiscal year, miliar with the matter. Carlyle mize their returns. their local banks are cash-strapped. ger, [U.S. agricultural] commodity The sale, in which the consor- TUI acquired Canada’s CP Ships cycle.” A tie-up with Hapag-Lloyd France Last week, Chinese telecommuni- , which has already secured down 67% from S$146.2 million a year Group, which had been previously The PCCW assets up for sale Russia showed intense demand, prices are still, in relative terms, tium also will assume roughly Œ2 bil- Ltd. in 2005 to become a leading would have created the world’s funding for the £12.5 billion earlier. SPH attributed the decline to cations equipment maker Huawei shortlisted as a bidder, didn’t sub- were ideal for this type of arrange- with far more requests for the high and you have a credit crisis lion in debt, keeps the world’s fifth- maritime shipping company. But third-largest maritime shipping ($21.32 billion) deal. The four reac- the sale of investments and gains Technologies Co. pulled the plug on mit an offer. ment—called a leveraged buyout— credit guarantees than the $400 mil- where this infusion of capital into largest container shipping company the company’s sagging stock price company, according to industry es- tors were scheduled to return to op- from capital-reduction exercises by The deal died because of the in- because its telecommunications the auction of a major stake in its lion allocated. Russia was allocated some foreign banks is very attrac- by capacity in German hands. TUI triggered divestment demands timates. eration in the fiscal third quarter, Singapore telecommunications opera- ability of banks to offer financing to business provides a steady cash mobile-devices unit, citing weak $345 million last year and did not tive to foreign buyers and does give AG rejected a competing bid by Sin- from increasingly restive sharehold- The sale to the Hamburg-based which ends Dec. 31, but now two of tors MobileOne Ltd. and StarHub private-equity bidders that would flow that could be used to pay down market conditions. Overseas invest- use all of it, according to USDA data. them access to credit that they gapore’s Neptune Orient Lines Ltd. ers. Management agreed in March consortium will hearten German them won’t restart until early next Ltd. SPH took a S$26.7 million impair- let them increase the price they the debt. ments by Asian companies have The USDA more than doubled wouldn’t have otherwise,” Mr. Hapag-Lloyd had Œ6 billion in sales to explore a Hapag-Lloyd sale. politicians who had expressed con- year. They had been shut down last ment charge to write down the carry- could offer and make the deal more Until recently, Asia had been a also slowed as buyers lick wounds Mexico’s allocation of export-credit O’Neil said. last year. TUI didn’t name the members of cern about Hapag-Lloyd falling fall to repair corrosion on wires re- ing amount of its investments in asso- attractive. Borrowing allows the bid- bright spot in mergers and acquisi- from losses on investments in Wall guarantees, to $100 million for fis- —Rebecca Townsend The deal highlights how the Albert Ballin KG, the Hamburg- into foreign hands. Exports are an lated to the steel and concrete ciates to its estimated recoverable ders to put up less capital and maxi- tions this year. Volumes climbed be- Street firms and other deals. cal 2009 (the 12 months starting contributed to this article. credit crunch has made financing dif- based buyer of Hapag-Lloyd. But important driver of the German structures that wrap around nu- amount. ficult. To seal the pact, Hannover- banking group HSH Nordbank AG, economy and Hamburg authorities clear reactors. Advertisement [ INTERNATIONAL INVESTMENT FUNDS www.WSJ.com ] Advertisement based TUI agreed to pay the consor- insurer Signal Iduna Pension- were nervous that their city’s sta- Samsung Group tium Œ700 million and will retain a skasse AG, the Hamburg city govern- tus as a major shipping hub would Renault SA 33.33% stake. TUI had tried to sell all ment and Klaus-Michael Kuehne, suffer if NOL won the auction. NOL A South Korean appellate court 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 of Hapag-Lloyd after putting it on who owns a majority stake in Swiss uses Rotterdam, the Netherlands, Renault SA appointed Patrick Pe- Friday upheld a lower court’s deci- Kuehne + Nagel In- Am Income B2 US BD LUX 10/09 USD 13.24 –11.8 –10.7 –3.1 Eur Value B EU EQ LUX 10/09 EUR 7.16 –45.1 –50.8 –25.3 Gl High Yield I US BD LUX 10/09 USD 3.54 –21.3 –22.0 –6.1 the auction block earlier this year. logistics group as a major hub. lata to the newly created post of sion to fine and hand a suspended Am Income I US BD LUX 10/09 USD 7.30 –11.0 –9.5 –1.9 Eur Value I EU EQ LUX 10/09 EUR 8.79 –44.4 –49.9 –24.0 Gl Value A GL EQ LUX 10/09 USD 8.80 –49.8 –54.7 –25.8 chief operating officer, effectively prison term to former Samsung Am Value A US EQ LUX 10/09 USD 6.89 –40.8 –44.4 –20.5 Gl Balanced (Euro) A EU BA LUX 10/09 USD 13.31 –37.4 –38.2 NS Gl Value B GL EQ LUX 10/09 USD 8.19 –50.2 –55.1 –26.5 Am Value B US EQ LUX 10/09 USD 6.42 –41.2 –45.0 –21.3 Gl Balanced (Euro) B EU BA LUX 10/09 USD 13.13 –37.9 –38.8 NS Gl Value I GL EQ LUX 10/09 USD 9.27 –49.5 –54.4 –25.2 making him the second in command Group Chairman Lee Kun-hee for Data as shown is for information purposes only. No offer is being made by Am Value I US EQ LUX 10/09 USD 7.34 –40.4 –44.0 –19.9 Gl Balanced (Euro) C EU BA LUX 10/09 USD 13.25 –37.6 –38.4 NS India Growth A EA EQ LUX 10/03 USD 73.61 –46.7 –34.4 3.4 at a crucial time for the car manufac- tax evasion. The Seoul High Court Morningstar, Ltd. or this publication. Funds shown aren’t registered with the U.S. Asian Technology A OT EQ LUX 10/09 USD 9.34 –41.8 –47.8 –22.2 Gl Balanced (Euro) I EU BA LUX 10/09 USD 13.44 –37.1 –37.8 NS India Growth B EA EQ LUX 10/03 USD 63.68 –47.1 –35.1 2.3 Securities and Exchange Commission and aren’t available for sale to United Asian Technology B OT EQ LUX 10/09 USD 8.27 –42.2 –48.3 –23.0 Gl Balanced A US BA LUX 10/09 USD 13.56 –34.5 –36.8 –14.5 India Growth I EA EQ LUX 10/03 USD 75.90 –46.6 –34.2 3.7 turer. Mr. Pelata will report directly gave Mr. Lee a three-year jail term States citizens and/or residents except as noted. Prices are in local currencies. Asian Technology I OT EQ LUX 10/09 USD 10.31 –41.5 –47.4 –21.6 Gl Balanced B US BA LUX 10/09 USD 13.06 –35.0 –37.3 –15.4 Int'l Health Care A OT EQ LUX 10/09 USD 117.87 –28.2 –30.0 –12.7 to Renault’s president and chief ex- suspended for five years and a 110 All performance figures are calculated using the most recent prices available. Emg Mkts Debt A GL BD LUX 10/09 USD 12.26 –17.4 –16.5 –3.8 Gl Balanced I US BA LUX 10/09 USD 13.95 –34.1 –36.3 –13.9 Int'l Health Care B OT EQ LUX 10/09 USD 100.65 –28.7 –30.7 –13.6 Aerospace sector to feel credit squeeze NAV — %RETURN — Emg Mkts Debt A2 GL BD LUX 10/09 USD 14.34 –17.3 –16.5 –3.8 Gl Bond A US BD LUX 10/09 USD 8.48 –5.2 –3.7 0.9 Int'l Health Care I OT EQ LUX 10/09 USD 127.52 –27.7 –29.4 –12.1 ecutive, Carlos Ghosn, and will be re- billion won ($84.1 million) fine—the FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR Emg Mkts Debt B GL BD LUX 10/09 USD 12.26 –18.0 –17.3 –4.8 Gl Bond A2 US BD LUX 10/09 USD 13.94 –5.2 –3.7 0.8 Int'l Technology A OT EQ LUX 10/09 USD 78.91 –44.4 –46.4 –16.8 By David Pearson slower economic activity will rub could dwindle if they can’t obtain sponsible for the day-to-day run- same sentence handed out by the Emg Mkts Debt B2 GL BD LUX 10/09 USD 13.98 –18.0 –17.3 –4.8 Gl Bond B US BD LUX 10/09 USD 8.48 –6.0 –4.7 –0.2 Int'l Technology B OT EQ LUX 10/09 USD 69.22 –44.8 –46.9 –17.6 Emg Mkts Debt I GL BD LUX 10/09 USD 12.26 –17.0 –16.0 –3.3 Gl Bond B2 US BD LUX 10/09 USD 12.36 –5.9 –4.7 –0.2 Int'l Technology I OT EQ LUX 10/09 USD 87.62 –44.0 –46.0 –16.1 off on all sectors of the aerospace in- credit, he said. ning of the company, a spokes- Seoul Central District Court in July. Emg Mkts Growth A GL EQ LUX 10/09 USD 21.36 –53.8 –54.9 –15.4 Gl Bond I US BD LUX 10/09 USD 8.48 –4.8 –3.1 1.4 Japan Blend A JP EQ LUX 10/09 JPY 5507.00 –44.8 –52.2 –28.2 Aerospace companies won’t es- dustry, Charles Edelstenne, chair- On Thursday, the chief executive Emg Mkts Growth B GL EQ LUX 10/09 USD 18.32 –54.2 –55.4 –16.3 Gl Conservative A US BA LUX 10/09 USD 13.35 –20.4 –21.2 –7.1 Japan Blend I JP EQ LUX 10/09 JPY 5612.00 –44.5 –51.9 –27.7 woman said. Mr. Pelata, 53 years A special prosecutor last month re- Emg Mkts Growth I GL EQ LUX 10/09 USD 23.44 –53.6 –54.5 –14.8 Gl Conservative A2 US BA LUX 10/09 USD 14.67 –20.4 –21.2 –7.1 Japan Growth A JP EQ LUX 10/09 JPY 5702.00 –42.3 –49.8 –27.2 cape the effects of the continuing man of French military- and busi- of European Aeronautic Defence & old, has spent his entire working life peated his call for a seven-year jail Eur Blend A EU EQ LUX 10/09 EUR 9.83 –44.1 –48.8 –23.5 Gl Conservative B US BA LUX 10/09 USD 13.34 –21.0 –22.0 –8.1 Japan Growth I JP EQ LUX 10/09 JPY 5810.00 –42.0 –49.4 –26.7 credit crisis, even though the indus- ness-jet builder Dassault Aviation Space Co., Louis Gallois, said he Eur Blend I EU EQ LUX 10/09 EUR 10.02 –43.8 –48.4 –22.8 Gl Conservative B2 US BA LUX 10/09 USD 14.11 –21.0 –22.0 –8.1 Japan Strat Value A JP EQ LUX 10/09 JPY 5294.00 –47.6 –55.0 –28.3 at Renault, most recently as the term and a fine of 350 billion won. In n ALLIANCE BERNSTEIN Eur Growth A EU EQ LUX 10/09 EUR 6.00 –42.4 –45.6 –20.3 Gl Conservative I US BA LUX 10/09 USD 13.36 –20.0 –20.7 –6.6 Japan Strat Value I JP EQ LUX 10/09 JPY 5381.00 –47.3 –54.6 –27.8 try entered the crisis in robust con- SA, said after the annual congress of wasn’tparticularlyworriedaboutthe head of the company’s Europe Man- July, the lower court dismissed the www.alliancebernstein.com/investments Tel. +800 2263 8637 Eur Growth B EU EQ LUX 10/09 EUR 5.46 –42.8 –46.2 –21.1 Gl Eq Blend A GL EQ LUX 10/09 USD 9.39 –50.0 –53.3 –24.3 Real Estate Sec. A OT EQ LUX 10/09 USD 11.65 –41.6 –48.3 –27.6 Eur Growth I EU EQ LUX 10/09 EUR 6.47 –42.1 –45.2 –19.7 Gl Eq Blend B GL EQ LUX 10/09 USD 8.92 –50.4 –53.8 –25.0 dition, European executives said the Aerospace and Defense Indus- crisis, adding that it will have only a agement Committee. The move will more serious charge of breach of Am Blend Portfolio A US EQ LUX 10/09 USD 8.34 –42.4 –46.3 –20.8 Real Estate Sec. B OT EQ LUX 10/09 USD 10.79 –42.1 –48.8 –28.3 Eur Income A EU BD LUX 10/09 EUR 5.73 –14.4 –15.7 –7.9 Gl Eq Blend I GL EQ LUX 10/09 USD 9.81 –49.7 –52.9 –23.6 Am Blend Portfolio I US EQ LUX 10/09 USD 9.72 –42.0 –45.9 –20.2 Real Estate Sec. I OT EQ LUX 10/09 USD 12.40 –41.2 –47.9 –27.0 Friday. tries Association of Europe. limited impact on his company. lighten the Mr. Ghosn’s workload at trust with regard to Mr. Lee’s role in Eur Income A2 EU BD LUX 10/09 EUR 10.22 –14.4 –15.8 –8.0 Gl Growth A GL EQ LUX 10/09 USD 34.38 –50.3 –51.9 –22.8 Short Mat Dollar A US BD LUX 10/09 USD 7.40 –14.2 –15.6 –6.6 Am Growth A US EQ LUX 10/09 USD 22.16 –37.9 –39.6 –14.7 Eur Income B EU BD LUX 10/09 EUR 5.73 –14.8 –16.3 –8.6 Gl Growth B GL EQ LUX 10/09 USD 29.05 –50.7 –52.4 –23.5 The crisis and global economic Suppliers of military equip- EADS, parent of European plane a time when the auto industry is fac- a transaction of bonds between Sam- Am Growth B US EQ LUX 10/09 USD 18.87 –38.4 –40.2 –15.5 Short Mat Dollar A2 US BD LUX 10/09 USD 9.50 –14.1 –15.7 –6.6 Eur Income B2 EU BD LUX 10/09 EUR 9.59 –14.8 –16.5 –8.7 Gl Growth I GL EQ LUX 10/09 USD 37.80 –50.0 –51.5 –22.1 Short Mat Dollar B US BD LUX 10/09 USD 7.40 –14.5 –16.0 –7.1 Am Growth I US EQ LUX 10/09 USD 24.33 –37.5 –39.1 –14.0 slowdown “will have a serious, seri- ment will suffer as countries di- maker Airbus, is benefiting from the ing a sharp slowdown in North sung affiliates and his son Jae-yong. Eur Income I EU BD LUX 10/09 EUR 5.73 –14.0 –15.2 –7.4 Gl High Yield A US BD LUX 10/09 USD 3.54 –21.6 –22.5 –6.6 Short Mat Dollar B2 US BD LUX 10/09 USD 9.51 –14.4 –16.0 –7.0 Am Income A US BD LUX 10/09 USD 7.30 –11.4 –10.0 –2.5 Eur Strat Value A EU EQ LUX 10/09 EUR 7.51 –46.2 –52.2 NS Gl High Yield A2 US BD LUX 10/09 USD 6.69 –21.5 –22.4 –6.5 Short Mat Dollar I US BD LUX 10/09 USD 7.40 –13.8 –15.1 –5.9 ous impact on our industry,” said Al- vert defense spending to support stronger dollar. EADS sells its planes America and Europe, industry ana- Am Income A2 US BD LUX 10/09 USD 15.22 –11.4 –10.1 –2.5 Eur Strat Value I EU EQ LUX 10/09 EUR 7.61 –45.8 –51.7 NS Gl High Yield B US BD LUX 10/09 USD 3.54 –22.2 –23.2 –7.5 Am Income B US BD LUX 10/09 USD 7.30 –11.9 –10.7 –3.2 Eur Value A EU EQ LUX 10/09 EUR 7.68 –44.7 –50.3 –24.6 Gl High Yield B2 US BD LUX 10/09 USD 10.89 –22.0 –23.2 –7.5 Please turn to next page lan Cook, chief executive of other parts of their economies, he in dollars but incurs most of its costs lysts said. Mr. Ghosn will continue U.K.-based Cobham PLC. said. Demand from end users such in euros. —Ruth Bender to oversee Renault’s strategy, fi- —Compiled from staff For information about listing your funds, please contact: Peter Jennings, tel: +44-20-7842-9674; email: [email protected] or Carson Wong tel: +852 2831-6481; email: [email protected] The credit squeeze and the as airlines and aircraft leasers contributed to this article. nance and public-affairs functions. and wire service reports. 10 MONDAY, OCTOBER 13, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. MONDAY, OCTOBER 13, 2008 23 ECONOMY & POLITICS www.efinancialnews.com AFGHANISTAN NOBEL PRIZE CYPRUS 7 7 7 NATO authorizes strikes Former Finland president Rival leaders to hold talks Funds of hedge funds are under pressure against drug industry is honored for peace efforts weekly to accelerate peace moil will be performance. He pre- coming months, but said there ORTH Atlantic Treaty INLAND’S former presi- YPRUS’S RIVAL Redemptions, drop dicts the AXA funds of hedge funds Worth the fees? would then be “great opportuni- will be down 5% this year, about Organization leaders dent Martti Ahtisaari community lead- Fund of hedge funds ties for whatever funds are remain- in value have some half the average hedge fund’s 9.4% N authorized direct mili- F won the Nobel Peace Cers agreed Friday performance ing, and the opportunities will be loss over the year so far, according tary strikes against Afghani- Prize for his efforts to build to accelerate the peace Year Performance larger than they have been for stan’s flourishing drug in- a lasting peace from Africa process by holding forecasting gloom to data provider Hedge Fund Re- some time.” search. 2004 6.9% dustry, a significant escala- and Asia to Europe and the weekly negotiations on The problems in the fund-of- By David Walker “You are looking through a mar- tion of the alliance’s opera- Middle East. a deal to reunify the 2005 7.5 hedge-funds industry may not And Phil Craig ket that has been hit with a liquid- tions there. The Norwegian Nobel Com- divided island. spare even the largest funds. ity shock impacting all strategies, 2006 10.4 Meeting in Hungary, mittee said it honored Mr. Ah- Press Associated President Dimitris “When the dust settles and we Christofias, a Greek It may be premature to write and hedge funds are more con- NATO defense ministers tisaari for important efforts 2007 10.3 look back at this period and big gave cautious approval to a over more than three de- Cypriot, and Turkish Cypriot leader Mehmet Ali Talat the epitaph for funds of hedge cerned about operational issues, funds, but people in the industry reining back risks and holding –11.0 2008* brands like Lehman Brothers and Associated Press Associated Associated Press Associated U.S. request that foreign cades. “For the past 20 years, met for the fourth time since relaunching talks last are giving them a less-than-glow- Bear Stearns have gone, both great forces be allowed to strike he has figured prominently in month to end a four-year stalemate. Both say they cash in anticipation of redemp- Sept. 2008 –5% big companies, people will see it is drug-production facilities that have ties to Taliban endeavors to resolve several serious and long-lasting are committed to ending the island’s decades-old divi- ing prognosis after a year in which tions,” said Phil Irvine, co-founder the funds have on average declined of recently formed institutional not necessarily safe to just look for fighters and other militants. conflicts,” the citation said, mentioning his work in sion. United Nations envoy Alexander Downer, who *Through Sept. 30 in value by 11%. consultant PiRho Investment Con- a long record without doing other The move comes in response to growing evi- conflicts from Namibia to Aceh, Indonesia, Kosovo moderated the talks, said Messrs. Christofias and Ta- Source: Hedge Fund Research Fund-of-hedge-funds man- sulting, who predicts declines this forms of due diligence,” said Mr. Ir-

dence that Afghanistan’s heroin trade is helping to and Iraq. Mr. Ahtisaari had been mentioned as a possi- lat agreed to meet once a week “to keep the momen- Fotosearch fund the Taliban insurgency that is destabilizing ble prize candidate since 2005, just after he negoti- tum of the process going.” The next meeting was set agers have historically decided year of 10% to 15% after a “pretty vine. “There may be a move back to awful” September and despite a funds’ losses don’t justify the 1% recruiting a fund-of-hedge-funds both Afghanistan and Pakistan. —Yochi Dreazen ated an end to a conflict in Aceh. —Associated Press for Monday. —Associated Press who gets 40% of the hedge-fund in- the groups that focus on hedge dustry’s $1.9 trillion of assets to possible bounce in November and management and 10% perform- manager. funds rather than it just being a manage, the idea being that they December. ance fee funds of funds charge on Mr. Howie predicted that well- small part of their asset gathering can more efficiently differentiate Citigroup credit analyst Matt top of 2% and 20% fees for individ- resourced managers will launch business.” ual hedge funds. Robert Howie, between good hedge funds and King said anecdotal evidence sug- more funds of funds focusing on Investors may yet view funds of also-rans. This year, however, gested at least 20% of industry as- principal in Mercer’s investment- specific strategies such as dis- hedge funds as a safe harbor from their track record hasn’t been sets could be pulled out in the De- consulting business, said funds of tressed debt or commodities—as market storms, however. Mr. good. cember redemption window, a fig- hedge funds will survive but take a opposed to more generic hedge Manser said AXA Investment Man- And if, as expected, significant ure that, if accurate, would reverse “diminishing slice of a growing funds—and there will be increased agers’ fund of hedge funds had re- numbers of investors pull cash out 3µ years of inflows, depleting pie” as institutional investors and competition from infrastructure U.S., Iraq near final draft of security pact hedge funds as well as funds of other sophisticated investing insti- and clean technology funds, al- ceived almost no redemption re- funds. Mr. Manser said funds of tutions launched their own invest- though he said investors were “not quests so far this year. “Funds of tions mandate expires at the end Ayatollah Ali al-Sistani. After the Some might reason hedge funds with mainly wealthy ment programs. rushing into new investments.” hedge funds have shown enor- Compromise unlocks of the year. meeting, Mr. Maliki told reporters individuals as investors will be The Netherlands’ ABP pension Nicola Ralston, PiRho’s co- mous outperformance of equities The current draft agreement that Mr. Sistani won’t oppose the funds’ losses don’t “feeling the pain in terms of re- fund and the California Public Em- founder, said funds of funds might and credit markets and what has talks on presence still contains a goal for with- agreement if the country’s demo- demptions probably a little bit ployees’ Retirement System in the be more reluctant to accept money been happening in commodities drawal of U.S. combat troops from cratic bodies, such as parliament, justify management more than those with institutional U.S. invest directly in hedge funds, involved in structured products, markets has been quite dire, so a of American troops Iraq at the end of 2011, although approved it. Mr. Sistani’s implied investors.” and will soon be joined by the Uni- where investors are highly lever- lot of investors will be satisfied that could be amended depending support is key to moving the ap- andperformancefees. The redemptions are already in- versities Superannuation Scheme aged. PiRho’s Mr. Irvine predicted with their funds of hedge funds,” By Gina Chon on conditions on the ground. As a proval process forward. flicting pain on some funds. Hedge- pension plan in the U.K., which is some “creative destruction” in he said. Baghdad precursor to that possible draw- Agreement between both gov- fund manager Man Group PLC has down, American soldiers would ernments on a final draft could of the funds as the opportunity ended the Close Man hedge fund af- HE U.S. AND IRAQ are close pull out of cities by the end of June come as early as this week. But the arises near the end of the year, ter investor withdrawals and mod- Available from to agreeing on a final draft 2009 and move to bases outside deal still faces several hurdles be- that could be enough to further est returns left the structured October 20 T of a security agreement that those areas, a move that has al- fore it can ultimately be approved. hurt some funds’ performances product with less than £4 million includes a compromise on legal ju- ready begun in many parts of Iraq. After being vetted by several lay- and leave others with a portfolio ($6.8 million), almost 95% down risdiction over American soldiers, For months, the U.S. has re- ers of the Iraqi government, the unbalanced by the sales needed to from its size in 2004. Its Swiss people familiar with the talks said sisted an Iraqi request that Ameri- deal must be approved by the Iraqi raise the cash. peer Gottex Fund Management Sunday. can soldiers be subject to criminal parliament, which could take up Chris Manser, who oversees also temporarily halted redemp- The issue of whether American prosecution under Iraqi law in any the pact later this month. $5.5 billion globally in AXA SA’s tions from one of its funds of soldiers would have immunity circumstance. The current com- Iranian officials, meanwhile, AXA Investment Managers’ funds hedge funds owing to valuation is- from criminal prosecution while promise being discussed would Press Associated have increased pressure on coun- of hedge funds, said what will de- sues of underlying portfolios. in the country has been one of the strip immunity from American sol- The U.S.-Iraq security deal will set terms of a future U.S. military presence in Iraq, terparts in Baghdad to reject the cide who survives the current tur- Some might reason that the biggest obstacles to sealing the diers who commit extremely seri- after a United Nations mandate expires at the end of the year. deal. And upcoming provincial deal, designed to set out the terms ous crimes while off duty, such as elections and other issues have in- of a future U.S. military presence rape or murder, said Iraqi Deputy creased tensions between the in Iraq. Foreign Minister Mohammed al- the matter. For example, jurisdic- committed off duty. But those mea- main political factions in Iraq, Negotiations have sped up re- Haj Humood and other people fa- tion would be limited to extreme sures are in place in peaceful na- complicating the approval pro- Barclays former executive cently as both sides moved toward miliar with the talks. cases. Tough, due-process stan- tions that enjoy robust rule of law. cess. compromise on the immunity is- The U.S. side decided to com- dards are a pre-condition to Iraqi Iraq is essentially still a war zone “It’s too early to say whether sue. Talks also moved forward be- promise on jurisdiction based on prosecution, these people said. with an inadequate legal system. we can pass this agreement in par- cause of a new sense of urgency assurances that the provision In other countries that have a In a sign of his growing commit- liament,” said Jalal al-Din al- joins consultancy DTZ from Iraqi officials, worried about would provide adequate legal pro- U.S. troop presence, like South Ko- ment to sealing a deal, Prime Min- Saghir, a senior Shiite lawmaker. any uncertainty about U.S. troops tections for the U.S. military, ac- rea, American soldiers are subject ister Nouri al-Maliki met Friday —Zaineb Naji By Vivek Ahuja many of its rivals, has been making in the country after a United Na- cording to people familiar with to local prosecution for crimes with revered Shiite cleric Grand contributed to this article. job cuts because of the severe The former chief operating of- downturn in the commercial real ficer of Barclays PLC has emerged, estate market. three months after leaving the U.K. Its share price has fallen by bank, at the helm of U.K. property 83% over the past 12 months and Off U.S.’s terror list, North Korea advances arms talks consultant DTZ Holdings PLC. closed down 19% at 75 pence Paul Idzik was chief operating of- ($1.28) in London on Friday. A per- By Jay Solomon which has provided fuel for atomic Sean McCormack said Saturday. ble and could take years to com- idential candidate John McCain ficer of Barclays Capital, the UK son familiar with the matter said weapons. “This demonstrates that the six- plete. They said that discrepan- said in a statement released ahead group’s investment banking arm, that while DTZ is considering rais- North Korea on Sunday said it On Saturday, senior U.S. offi- party principle of ‘action for ac- cies could emerge between Wash- of the State Department’s formal from 1999 until he stepped up to take ing capital “at some point in the fu- would resume tearing apart its cials said Pyongyang also ap- tion’ is working.” ington and Pyongyang over out- announcement Saturday that the the same role at group level four ture”, it would be for the purposes Yongbyon nuclear complex, a day proved outside inspections of all Delisting North Korea from the side access to military or testing U.S. must “avoid reaching for years ago. He resigned in early May of taking advantage of potential FREE with Financial News after the U.S. announced it was re- declared nuclear sites inside State Department’s tally of state sites that North Korea might not agreement for its own sake, partic- to pursue what he described as his opportunities. moving North Korea from its list North Korea, as well as the scien- sponsors of terrorism will lift designate as among its declared ularly if it leaves critical verifica- “next challenge,” and left the bank at DTZ Chairman Tim Melville- of state sponsors of terrorism. tific sampling of air, soil and other some economic sanctions enacted nuclear sites. These officials also tion issues unaddressed.” the end of June. Ross said, “Paul’s proven track The carefully-staged set of dip- elements that could gauge the ex- against Pyongyang. But U.S. offi- acknowledged that it remains un- Japanese officials also ex- Mr. Idzik, who advised on the re- record of running a significant inter- and Wall Street Journal Europe lomatic steps restored momentum tent of the North’s production of cials stressed that other sanctions clear the extent that they’ll be pressed skepticism about the U.S. structuring of Barclays’s former in- national business will be invaluable to the so-called six-party process fissile materials. tied to North Korea’s proliferation able to test and remove samples move while it is trying to pressure vestment banking business BZW to as we continue to grow and diver- in which five nations—China, Ja- Pyongyang also agreed to allow activities and alleged human from the reclusive communist North Korea via the six-party pro- form Barclays Capital before joining sify DTZ.” pan, Russia, South Korea and the the U.S. and international commu- rights abuses remain in place. country. cess to provide information about the bank, was named group chief ex- U.S.—are trying to persuade North nity to interview key North Ko- Lifting the sanctions “doesn’t “It will be a bumpy road,” said kidnapped Japanese citizens. ecutive of DTZ, according to a state- — NOTICE TO READERS — Korea to accept economic aid and rean nuclear scientists and to ver- remove at all the leverage we main- Assistant Secretary of State for Sung Kim, the U.S. envoy to the six- ment from the property adviser on give up its pursuit of nuclear weap- ify the country’s alleged efforts to tain over North Korea,” said Patri- Verification, Compliance and Im- party process, met with Japanese Friday. The articles on this page on the ons. produce fissile materials using cia McNerney, principal deputy as- plementation Paula DeSutter. leaders in Tokyo to describe the He will succeed Mark Struckett, securities and investment-banking In a short statement issued by highly enriched uranium and to as- sistant secretary for international “However, we’re building a road.” U.S. plan. “We strongly urge the DTZ’s chief executive for the past industry are provided by Financial its state media, North Korea said it sist third countries in the develop- security and non-proliferation. The announcement is already North Koreans to implement” 14 years, who the company an- News, a Dow Jones company in Don’t have a subscription? would allow inspections from U.S. ment of their nuclear programs. U.S. officials acknowledged stoking the ire of some U.S. conser- steps agreed to with Japan on the nounced in June would be step- London that publishes the Financial Request a FREE copy today. and the International Atomic En- “Every element of verification that that the obstacles to verify- vatives, who argue that the guide- abduction issue, Mr. Kim said. ping down from the group. Mr. News Web site (www.efinancialnews. ergy Agency to verify the disable- that we sought is in this package,” ing and dismantling North Korea’s lines for verification might not be —Evan Ramstad Struckett will remain as a consult- com) and Financial News weekly Visit www.wealth-bulletin.com/copyrequest ment of its nuclear power plant, State Department spokesman nuclear program remain formida- stringent enough. Republican pres- contributed to this article. ant to the company, which, like newspaper.