32 THURSDAY, OCTOBER 2, 2008 THE WALL STREET JOURNAL. THE FINANCIAL CRISIS

China’s thirst keeps oil price aloft Continued hunger China's share of global consumption growth, forecast for 2009 Continued from first page the same month last year. over the next two years. VOL. XXVI NO. 172 THURSDAY, OCTOBER 2, 2008 fell 2.1%, or $2.11, to $98.53 on Government data, meanwhile, in- Even if China’s exports slump, Aluminum Wednesday on the New York Mercan- dicate a decline in Chinese home the country could use its huge for- Iron ore Œ2.90 tile Exchange. prices in August. A Morgan Stanley eign-currency reserves to fund new Oil Œ2.90 U.S. business and trade But thus far, the West’s eco- strategist recently warned of a pos- public-works projects, from roads Steel - Spain nomic maladies haven’t caused ma- sible “meltdown” ahead in China’s and dams to housing complexes and - France leaders urge a rescue plan Copper jor slowdowns in the East. Oil de- property industry. power plants—all of which would NEWS IN DEPTH | PAGES 16-17 EU leaders air disputes mand in developed countries has In the worst-case scenario, Chi- buoy raw-material demand. Govern- Corn Œ3.20 shrunk, but in Asia, particularly na’s economy would slow dramati- ment spending on infrastructure Nickel Sk 100/Œ3.32 China, and the Middle East it’s still cally or slide into recession over the rose 42% in the first half compared Soybeans - Finland Why UniCredit’s stock has growing at a fair clip. Oil use in the next year, as the U.S. financial-mar- with 19% in the same period in 2007, Met coal - Slovakia Dkr 22 oil-rich countries of the Persian Gulf ket crisis reverberates around the according to CLSA, a Hong Kong- Œ3 underperformed this year over how to handle crisis Wheat looks set to jump 7% this year, out- globe. That would shove oil prices based brokerage firm. Chinese offi- HEARD ON THE STREET | PAGE 22 Thermal coal - Denmark pacing even China. down faster than any other force. cials have taken a number of other - Portugal The big question now is how But for now, most economists be- steps to keep growth strong, includ- 0 20 40 60 80 100% German minister Kc 110 much China’s economy will cool lieve that is unlikely, which means ing lowering interest rates, drop- Source: Deutsche Bank Zl 10.50 over the next several months as it China looks set to remain the main ping fees on small businesses and rejects French plan “The origin and absorbs the pain from the travails in driver for growth in commodities raising export-tax rebates for some - Poland its chief export markets in North markets. Even with the U.S. and Eu- products. for joint bailout fund Nkr 27

- Czech Republic center of gravity America and Europe. There are al- rope in the doldrums, China’s econ- The big oil producers within the with Iran and perhaps Venezuela, OPEC provides nearly 40% of that. What’s News— ready signs of an economic slow- omy is expected to expand 9% or Organization of Petroleum Export- could move to trim OPEC’s overall Even with diminished demand in BERLIN—France is leading calls 7 7 - Norway

HRK 20 Business&Finance World-Wide of the problem down in China, even amid predic- slightly more next year. Travel by ing Countries—Saudi Arabia above production by as much as one mil- the U.S. and Europe, most analysts for a common European Union re- tions that the country will clock a air and road continues to expand. all—are also poised to rein in output lion barrels a day in coming months still forecast that China and the Mid- Œ2.90 Germany rebuffed French calls Obama and McCain returned sponse to fallout from the global fi- isis clearlyclearly inin growth rate of around 10% this year, Oil imports in August jumped 11% if prices slide. Slumping demand in if prices slump much below $90 a dle East will help drive up global oil - Croatia for a common European re- to Washington to support the nancial crisis, but Germany’s fi- compared with 11.9% in 2007. Chi- from August 2007,according to Bar- the U.S., the world’s largest oil con- barrel or if world oil inventories demand next year by as much as sponse to fallout from the glo- $700 billion bank-rescue pack- nance minister said in an interview Œ2.90 the USA.” age, as lawmakers appear to na’s imports of many base metals clay’s Capital. sumer, has helped loosen the global grow too large. OPEC ministers 800,000 barrels a day. - Netherlands bal financial crisis, including a Wednesday that Berlin wasn’t inter- slumped in August from July, and “We believe underlying demand oil market in recent months. But made an ambiguous move toward “On the demand side, I see nice joint bailout fund and a Europe- have revived the bill by adding ested in French proposals for a joint —German Finance Minister Dh 24 growth in freight tonnage leaving is still solid” in China, despite the Saudi Arabia has already begun to slicing production when they met in solid anchors in East Asia and the - Belgium wide financial regulator. So far, an increase to federal deposit- bailout fund and a Europe-wide fi- Œ3 China has slowed. U.S. imports from latest headwinds, oil-industry ana- trim its oil shipments in recent September, and could take sterner Middle East,” says David Kirsch, an £1.40 EU policy makers have re- insurance limits and several tax nancial regulator. Peer Steinbrück

China are still strong, at $1 billion a lysts at Citigroup wrote in a note to weeks after boosting output by action when they next meet in De- analyst at Washington-based con- - Morocco sponded to a string of threat- breaks, clearing the way for the Conflicts between leaders of two day in July, but freight traffic in and clients last week. The bank said it ex- more than 500,000 barrels a day cember. sultancy PFC Energy. On the supply - Austria ened bank collapses with Senate vote looming Wednes- of Europe’s biggest and closest econ- Œ2.90 out of America’s West Coast ports pects Chinese oil demand to con- this summer. The world now consumes side, he says, “this begins and ends widely varying solutions. Page 1 day and raising the odds of omies over how to handle the finan- was down about 10% in July from tinue growing 4.5% to 5.5% a year Some analysts say the Saudis, around 86.5 million barrels a day. with OPEC.” passage in the House. Pages 1, 31 Lk 370.00 – United Kingdom n China’s demand for oil and

$2 n The U.S. Senate was expected By Marcus Walker and Joellen - Luxembourg Saudi Arabia’s influence on sup- Perry in Berlin and David ply have been helping keep the to approve a U.S.-India nuclear- cooperation accord, nearing a Gauthier-Villars in Paris L£ 4000 price of crude aloft. Page 1 vote that would be the last hur- n The latest swings in the dle to civil nuclear trade with cial crisis could deepen rifts within

$920 Million Project | 3 interruPtions | contingency Plan in action - Lebanon - U.S. Military (Eur) euro-dollar exchange rate re- India after a three-decade ban. the 27-nation bloc about how to con- duct and regulate finance as govern- Reuters

Œ2.90 flect the high degree of uncer- n A top U.S. negotiator took a tainty among investors and a ments struggle to rescue interna- YTL 4.25 the risks are covered. - Italy new proposal to North Korea to tional banks with domestic taxpay- relative lack of liquidity in cur- try to salvage a nuclear-disarma-

Œ2.90 rency markets. Page 19 ers’ money.

- Turkey ment pact, amid reported signs The U.K. government continues n Sigma Finance faced immedi- of activity around the country’s Forbailout vote, Obama, to discuss its own rescue plan. Op-

S£ 150 nuclear-bomb testing site. ate liquidation after a drop in the tions under consideration include: a - Ireland (Rep.) value of its investments. Page 2 n Conservative Party leader U.K. fund like the U.S. plan to buy - Syria

Ft 530 n The Fed is weighing further Cameron sought to counter crit- Please turn to page 31 McCain are just senators interest-rate cuts even if Con- ics who say he lacks the experi- SF 4.80 ence and policies to deal with By Christopher Cooper week. Since then, lawmakers ap-

- Hungary gress passes the $700 billion res- Britain’s financial crisis. Page 9 pear to have revived the bill by add- cue plan. Page 3 Œ2.90 ing an increase to federal deposit-in- n Alaska Gov. Sarah Palin and WASHINGTON—With action on n - Switzerland ECB and Bank of England Democratic Sen. Joe Biden meet China’s thirst, the$700billionbank-rescuepackage surance limits and several tax - Greece tried to smooth distortions in in- looming Wednesday, presidential breaks, clearing the way for the Sen-

Œ3 in a U.S. vice-presidential election kr 27 terbank money markets by inject- debate Thursday. Pages 11, 12 candidates Barack Obama and John ate vote and raising the odds of pas- ing billions of dollars into the Saudi clout McCain prepared to return to Wash- sage in the House. Germany For information or to subscribe, visit www.services.wsje.com or call +44 (0) 207 309 7799 — Albania Sweden banking system. Page 20 n Iraq’s Shiite-led government ington for what has proven to be un- Both Sen. Obama and Sen. took command of 100,000 U.S- usualdutyforthemthispoliticalsea- McCain, his Republican rival, have n U.S. stocks traded lower as backed, mostly Sunni fighters underpin oil son: casting a vote in the U.S. Senate. worked to ensure the bill’s passage, the Senate reconsidered the bail- who turned against al Qaeda, The senators have each missed even as they have voiced reserva- out package. In Europe, banking pledging to integrate them. By Neil King Jr. hundreds of votes while campaign- tions about some aspects of it. While shares gained, but mining and n A suspected U.S. missile And Patrick Barta ing for president, saying they would the Senate legislation doesn’t ap- auto stocks fell. Page 20 strike on a Taliban commander’s return to the Capitol only when they pear to be in peril, Sen. Obama now n Merger-and-acquisition activ- home in Pakistan killed six, Two stalwarts are still standing could make a difference in a close says his vote could help persuade ity held up during the third quar- officials said, a possible sign the between the world’s slumping econ- vote. Sen. Obama, the Democratic House members to support the mea- ter. The U.S. was particularly U.S. was proceeding with cross- omies and a steep drop in oil prices: nominee, initially had said he sure when that chamber takes it up strong, climbing 27% to border raids despite protests. China and Saudi Arabia. wouldn’t return to vote on the res- again, perhaps as early as Thursday. The credit crisis and fears of a re- cue package, which originally was “I’ll be flying back to Washing- $368.2 billion. Page 19 n Eight EU nations offered to cession have sparked some predic- expected to handily pass the Senate. ton today to cast my vote to safe- create a maritime security force n Italy offered reassurance on tions in recent weeks of an imminent That was before the measure guard the American economy,” Sen. its banks after UniCredit lost to help fight piracy off Somalia, plunge in crude prices. A global re- France’s defense minister said. failed to pass the House earlier this Please turn to page 31 nearly one-quarter of its value cession could clobber demand, caus- this week. Page 4 n China’s 2008 Olympic female ing a surplus in supply and a swift gymnasts were all old enough fall in oil prices, the argument goes. n Xstrata dropped a $10 billion to compete, but questions re- But so far, prices have been sur- bid for Lonmin while increasing main about the 2000 team, in- prisingly resilient, bobbing around its stake in the platinum miner ternational federation FIG said. $100 a barrel for weeks, despite the to thwart other buyers. Page 4 n EU monitors began patrolling U.S. stock-market turmoil and con- taking on a challenge like this demands a global partnership from beginning to end. n U.S. auto sales in September Georgian territory, and some gressional wrangling over a finan- HAVE YOU EVER We offer a broad range of risk management solutions tailored to your industry. as a continued to decline despite were allowed into a buffer zone cial rescue package. Two of the leading Fortune global 500® company, we give you the confidence you need, whatever customer incentives, with sev- around South Ossetia. Page 9 main forces keeping oil aloft, ana- eral car makers reporting de- lysts say, are China’s continuing the challenge. www.allianz.com n clines of more than 30%. Page 6 Japanese police said a man thirst for it and Saudi Arabia’s abil- WORN A REAL WATCH? set fire to an adult video ity to tighten the spigot on world theater in Osaka, killing at Allianz. Financial solutions from A- Z Markets 4 p.m. ET supplies when it pleases. NET PCT least 15 people and injuring 10. Where crude prices go from here, MARKET CLOSE CHG CHG n Russia’s last czar, Nicholas II, these analysts say, could hinge more insurance | asset ManageMent | BanKing DJIA 10831.07 -19.59 -0.18 and his murdered family were on Beijing and Riyadh than Washing- Nasdaq 2069.40 -22.48 -1.07 victims of political repression, ton or New York. Surging fuel prices DJ Stoxx 600 257.75 +1.70 +0.66 the country’s high court ruled. and a weakened U.S. economy have FTSE 100 4959.59 +57.14 +1.17 sent oil demand down sharply this DAX 5806.33 -24.69 -0.42 Editorial&Opinion year in the U.S. and Europe. That CAC 40 4054.54 +22.44 +0.56 downdraft, along with heightened supplies of Saudi crude, has helped Euro $1.3998 -0.0047 -0.33 Austria moves right allianz is a registered trademark of allianz se, germany. allianz se is the parent company of entities around the world drive prices down more than 30% Nymex crude $98.53 -2.11 -2.10 The far-right’s electoral gains such as agF, allianz global investors and Dresdner Bank. the range of services in different markets may vary. in Austria stem from simple from record highs in July. U.S. bench- Money & Investing > Page 19 economic populism. Page 15 mark crude for November delivery Please turn to back page 2 THURSDAY, OCTOBER 2, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. THURSDAY, OCTOBER 2, 2008 31 THE FINANCIAL CRISIS THE FINANCIAL CRISIS EU leaders air disputes over handling economic crisis Sigma’s fall could worsen market’s pain Continued from first page sis at a summit in Paris, possibly ny’s government argues the coun- banks’ toxic assets; deposit insur- over the weekend. It’s unclear, how- Tightening try’s banking system is more robust to get a sense of what they would agreements with their creditors. agreements, followed by HSBC Moody’s and Standard & Poor’s ance; and a way to swap assets such ever, how much they would be able The French government and the European Commission are working on a thanks to its large cooperative and Lehman’s collapse be worth, people familiar with the Sigma survived in part because it Holdings PLC and Royal Bank of Ratings Services late Tuesday cut as securities for government-issued to agree. series of proposals aimed at increasing oversight on the financial savings-bank sectors, which have matter say. had invested in high-quality securi- Scotland Group PLC, people famil- Sigma’s credit ratings and warned bonds or instruments that might France has said it wants to dis- industry. Some European governments aren’t convinced. been barely affected by the widen- has the last big SIV An official at investment firm ties, and in part because it had iar with the matter say. On Tues- that investors in roughly $6 billion not require market valuations. One cuss ideas including a European ing turmoil in trans-Atlantic credit Gordian Knot Ltd., which runs taken precautions to protect itself day, at least one lender issued a no- of Sigma’s remaining debt may not idea floated, a pan-European fund, fund to bail out distressed banks Main consensual proposals Main controversial proposals markets. facing liquidation Sigma, declined to comment. On from being forced to sell its assets tice of default, according to get much of their money back. appears less likely. and a pan-European banking regula- n Limit short selling of bank and n Soften mark-to-market German banks have written off its Web site, Sigma posted a state- if markets turned against it. Moody’s. As a result, all of Sigma’s Birgit Specht, an analyst at Citi- German Finance Minister Peer tor. Mr. Sarkozy has said he is con- insurer stocks (enforced accounting rules when banks or tens of billions of euros in assets By Neil Shah ment saying that its board had de- The Lehman default, however, lenders are expected to move to group in London, expects holders Steinbrück rejected talk of pan-Euro- cerned that the EU, with its system temporarily by some EU companies commit to hold on to since the U.S. subprime-mortgage And Carrick Mollenkamp cided to cease trading and “is ex- proved fatal for Sigma—not only seize Sigma’s assets if they haven’t of Sigma’s medium-term notes to pean bailout funds in an interview of national financial regulation, is ill- governments). assets over a long period of meltdown in summer 2007, how- pecting the appointment of a re- because the fund held an estimated already, essentially paralyzing the recover roughly 15 to 20 cents on with The Wall Street Journal equipped to cope with the potential n Increase capital requirements for time. ever, and some critics believe Mr. LONDON—The latest wave of fi- ceiver.” $110 million in Lehman debt, but fund, analysts say. the dollar. Wednesday, saying Europe’s finan- failure of a major multinational banks and other financial n Create a full-fledged, Steinbruck is being complacent. nancial turmoil has crippled $27 Launched in 1995, Sigma is the also because it had come to depend cial difficulties aren’t as deep as bank. institutions. pan-European banking regulator. German officials are opposed in particular to any European plan billion London-based investment last major survivor of a breed of in- heavily on the so-called repo mar- those of the U.S. French Finance Minister Chris- n Tighten regulations of n Soften European Union rules Sigma Finance that would mirror U.S. Treasury Sec- fund Corp., raising vestment funds that played a cen- ket to finance its investments. In a CORRECTIONS & AMPLIFICATIONS “To put it mildly, Germany is tine Lagarde, in an interview with credit-rating agencies. limiting state aid. concerns that a messy sale of its as- tral role in the current financial cri- repo transaction, a fund turns over highly cautious about such grand de- German newspaper Handelsblatt retary Henry Paulson’s proposed sets could weigh on already wob- sis. Known as structured invest- securities as temporary collateral signs for Europe,” he said. “Other due for publication Thursday, said Sources: French government; European Commission $700 billion purchase of banks’ bad bly markets. ment vehicles, or SIVs, the funds for a loan, then later buys back the countries are free to think about it. I the EU fund should be available to assets. Mr. Steinbrück questioned In a sign of the broadening re- used short-term borrowings to securities at a price that includes $500,000 just don’t see any German interest bail out banks when an individual why German taxpayers should have percussions of last month’s demise make longer-term investments in interest on the loan. If the value of Credit woes in it.” country can’t cope. A spokesman for the government, to rescue Munich- Late Wednesday, a third foreign- to pay up “to stabilize situations for which other countries are responsi- of securities firm Lehman Broth- everything from bank debt to U.S. the collateral falls below a certain Annual cost of protecting 400,000 Ireland’s decision to guarantee Ms. Lagarde said it was “an idea based bank Hypo Real Estate Hold- owned bank, Ulster Bank, a unit of ers Holdings Inc., Sigma faced im- subprime mortgages. The funds be- level, the lender can demand against a default on $10 million the deposits and debt of its six big- worth debating, not a proposal.” ing AG. Royal Bank of Scotland Group PLC ble.” The U.K. is also skeptical of minent liquidation Wednesday af- came popular among banks, which added collateral in a move known of Royal Bank of Scotland’s debt gest banks also drew a barely veiled The International Monetary On Tuesday, the French, Belgian that has a substantial presence in such a fund, according to people fa- miliar with the matter. ter a drop in the value of its invest- set them up as a way to park invest- as a margin call. for five years 300,000 rebuke from the EU’s top regulator Fund and the Organization for Eco- and Luxembourg governments Ireland, said it intended to apply to By contrast, Germany supports ments, which included Lehman ments off their balance sheets. By Lehman’s default on Sept. 15 Wednesday. Britain, some of whose nomic Cooperation and Develop- banded together to inject Œ6.4 bil- be included in Dublin’s deposit guar- efforts to beef up the regulation of debt, forced it to default on its bor- mid-2007, they had amassed some precipitated a sharp drop in the banks operate in Ireland and ment also said Europe needs to coor- lion into lender Dexia SA. And Ire- antee plan, and expects to be suc- 200,000 international finance. Mr. Stein- rowing agreements. The default $400 billion in assets. value of the bank-issued bonds wouldn’t benefit from the draft dinate its response. “Considering land took the extraordinary step of cessful. brück said Wednesday he supported will likely leave investors in some When short-term lending mar- that make up nearly two-thirds of plan, said it wants Dublin to re-ex- the exposure of European financial guaranteeing all debt and deposits In Britain, a government spokes- proposals from Europe’s top finan- $6 billion of Sigma’s own debt hold- kets began to clog last year, the Sigma’s investments. That, in turn, 100,000 amine the details. institutions, we might have to start at its six main financial institutions man said the U.K. wants Ireland to cial regulator, European internal ing paper worth as little as 15 cents SIVs were rendered unable to fi- led to increased margin calls from June July Aug. Sept. thinking of a systemic plan for Eu- for two years—a potential liability “look quite closely” at the measure As a new wave of financial tur- markets commissioner Charlie Mc- on the dollar, and allows banks nance their investments, forcing lenders and a depletion of Sigma’s Source: Markit to “make sure they comply with EU moil hit European shores this week, rope,” said OECD Secretary-General of Œ400 billion, or twice Ireland’s Creevy, to improve bank oversight. that lent to Sigma to sell some $25 many to the verge of liquidation. cash reserves, according to a re- competition law,” Reuters news calls have mounted for a pan-Euro- Angel Gurría. gross domestic product. “We need more cooperation and billion in collateral, consisting Some major banks, such as Citi- port from ratings firm Moody’s In- pean response, with European Com- So far, however, policy makers in Ireland’s move to guarantee with- agency reported. convergence of oversight in Europe— group HSBC A chart with the headline, “Credit woes” that ran with the Heard on the largely of bank-issued bonds. and , stepped in to res- vestors Service. On Monday, one of mission President José Manuel Bar- Europe have responded to a string out limit all deposits and debt at six In Brussels, EU competition com- that’s the right way foward,” said J.P. Morgan If the banks sell, they could cue affiliated funds. Other SIVs Sigma’s lenders— Street column Wednesday was incomplete. The corrected chart appears roso and Luxembourg Prime Minis- of threatened bank collapses with Irish banks—but not others operat- missioner Neelie Kroes said her of- Mr. Steinbrück. “But this grand de- Chase worsen the pain in credit markets, sold off their assets or came to & Co.—terminated its repo above. ter Jean-Claude Juncker joining the widely varying local solutions. ing in the republic—is proving con- fice was in “close contact” with Irish sign with a pan-European umbrella, which have suffered badly in re- chorus. “I think we need to system- Last weekend, the U.K. national- troversial. Officials of two foreign- authorities. Though she didn’t di- I don’t know what that is meant to cent weeks amid growing concerns atize the European response,” Mr. ized troubled mortgage lender Brad- owned banks operating in Ireland— rect her remarks at Ireland, she look like. Unless it means the Ger- that banks and funds will be unable INDEX TO BUSINESSES Juncker said Wednesday. ford & Bingley PLC; the Nether- National Irish Bank, a unit of Dan- called on national governments not mans should pay,” he said. to honor their obligations. “This An aide to French President Nico- lands, Belgium and Luxembourg ske Bank AS; and Bank of Scotland to “act unilaterally” and instead In a sign of how difficult it is to doesn’t help,” said Howard Si- las Sarkozy said talks were under- agreed to inject Œ11.2 billion into fi- (Ireland), part of U.K.-owned HBOS seek common solutions, recalling pass Europe-wide banking regula- mons, a bond strategist at Bianco 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 way for top European policy makers nancial group Fortis NV; and Ger- PLC, which is selling itself to Lloyds the results of protectionist competi- tion, though, Mr. McCreevy’s plans Research in Chicago. “The lending boldface type in all articles except those on page one and the editorial pages. including the leaders of Germany, many organized a Œ35 billion emer- TSB Group PLC—said they are wor- tion in Europe in the 1930s. would take effect in April 2010 at markets that banks rely on were al- the U.K. and Italy to discuss the cri- gency loan, partly guaranteed by ried about an uneven playing field. Mr. Steinbrück said Wednesday the earliest and must be approved ready rattled before this.” Advanced Micro Devices.20. . Cisco Systems.20 ...... Flixster .3...... 0Lazard .2...... 2Occidental Petroleum.20...... Sigma Finance .2...... that despite the wave of bank bail- by the European Council, represent- Sigma’s lenders could choose to Advantage Cos..28 ...... Citigroup ...... 2,16,20,22,24 Ford Motor ...... 3,6,20 LeftHand Networks.20...... Oil & Natural Gas.6 ...... Slide .3...... 0 outs by European governments in re- ing all 27 EU countries, and the Euro- keep the fund’s souring assets, Aetna .2...... 9Cnooc .6...... Fortis ...... 20,31 Lehman Brothers Holdings Olivant Advisers.21...... Sonangol.6...... cent days, the crisis facing the re- pean Parliament. rather than sell into a weak mar- Alcoa.7...... Comcast .3...... 0Galp Energia.6...... 2,22,24 Oneok Partners.22 ...... Sony .3...... 0 gion isn’t as deep as in the United The proposals call for groups of Orica.8...... ket. In that case, they could face a American International Commerzbank.20...... GameStop ...... 4,20 Lloyds TSB ...... 19,20,28,31 Southwest Energy.8 ...... Obama, McCain to return for rescue vote States. He said Europe’s ad hoc res- national regulators to supervise the Group .2...... 4Commonwealth Bank.23 ...... Parallels .3...... 0Straumur-Burdaras total of some $2 billion in write- Genentech ...... 8,22 Lonmin ...... 4,20 cues of banks and informal consulta- 44 or so European banks with opera- Anglo Irish Bank.20 ...... Companion Global General Electric ...... 5,16,20 Loomia .3...... 0Paulson .2...... 8Investment Bank.8 ...... downs, according to a report from Paulson Advantage Plus.28 .. Continued from first page tion between the region’s govern- tions in more than one European Anheuser-Busch.22 ...... Healthcare .2...... 9General Motors ...... 6,20 Luminant Generation.7 ...... Sumitomo Mitsui Financial Citigroup Inc. On Tuesday, at least PayPal .3...... 0 Obama told supporters during a ments and central banks are work- Apple ...... 20,30 ConAgra Foods.17 ...... Goldman Sachs Group ...5,22 Marathon Oil .6...... Group .2...... 3 country. three banks were circulating lists AT&T .1...... 6ConocoPhillips ...... 6,20 Peabody Energy.20 ...... Sunoco .2...... 0 campaign stop in LaCrosse, Wis., on ing well so far. —Alistair MacDonald in London, Gordian Knot .2...... Marfin Investment Holdings Petróleo Brasileiro.6...... of Sigma assets to potential buyers Banco Santander (Spain).8. . Consol Energy.20 ...... Talisman Energy.6 ...... Wednesday morning. “And to the “The origin and center of gravity Charles Forelle in Brussels and Gottex Fund Management .2...... 8Petters Group Worldwide .28 Bank of America.19...... Corporate Synergies Group Tesco PLC .8...... Democrats and Republicans who .2...... 9.2...... 8Mars Inc..5...... Philips Electronics.8 ...... of the problem is clearly in the Mike Esterl in Frankfurt Bank of Ireland.20...... HBOS ...... 19,20,28,31 Massey Energy.20...... 3i Group .2...... 8 have opposed this plan, I say: ‘Step U.S.A,” said Mr. Steinbrück. Germa- contributed to this article. Credit Opportunities.28 ...... Pilgrim’s Pride.17 ...... Time Warner .30...... Bank of New York Mellon 24 Hewlett-Packard.20 ...... McDonald’s .1...... 7 up to the plate and do what’s right Credit Opportunities II.28 .... Porsche .2...... 0Total SA.6...... Barclays .2...... 8 Honda Motor .6...... Merck & Co..2...... 9 Credit Suisse .22...... Porsche Automobil Holding.6 . Toyota Motor ...... 3,6 for the country, because the time to Barclays Capital.22...... HSBC .2...... Merrill Lynch .19...... Power Curbers .3...... Daimler ...... 6,20 T. Rowe Price.30 ...... act is now.” ’ Bayer AG .8...... Prudential Securities.24...... Danske Bank .3...... 1Hypo Real Estate Holding 31 MGM Mirage .8...... UBS ...... 21,22 Sen. McCain also plans to return Berkshire Hathaway.5...... Hyundai Motor.6 ...... Micromania.2...... 0PSA Peugeot-Citroën.6...... Deka-Bank .2...... 0 UniCredit.2...... 2 to Washington for the rescue-pack- Best Doctors .2...... 9 IBM .2...... 0Microsoft .1...... 6RealNetworks.30 ...... Senate rescue plan would lift Delhaize Group.29 ...... United Co. Rusal.7 ...... BHP Billiton ...... 4,7,23 Dell .2...... 0ICICI Bank .2...... 3Mitsubishi UFJ Financial Renault .6...... age vote, marking the first time Boehringer Ingelheim.8...... Rio Tinto ...... 4,7,23 Verizon Communications.16 . since April 8 that he has pulled the Deutsche Bank .4...... ImClone Systems.22 ...... Group ...... 22,23 Viacom .3...... 0 Bradford & Bingley ..8,21,31 Dexia.3...... 1 Roche Holding...... 8,22 lever on a Senate measure, congres- InBev .2...... 2Mitsui OSK Lines.23 ...... VMWare.3...... 0 limit on borrowing by FDIC Bringing Universities and Royal Bank of Scotland Bristol-Myers Squibb... . 8,22 Dominos Pizza.17 ...... Infosys Technologies.23 ...... Morgan Stanley.22 ...... sional records show. The Arizona Businesses Together Cadbury .5...... Group ...... 8,28,31 Volkswagen ...... 6,8 Energy Transfer.22 ...... International .2...... 8National Australia Bank.23 . Wachovia ...... 16,20,24 senator has missed 420 votes, or By Damian Paletta Wednesday night. The measure California State Teachers’ Enhanced .2...... 8 Royal Bank of Scotland PLC Books for Brains Johnson & Johnson.8 ...... NBC Universal.30 ...... Walt Disney .3...... 0 about 65% of all votes held, since the would then go to the House of Rep- Retirement System.24 ...... ExxonMobil .6...... 2...... 15 management books to win J.P. Morgan Chase ...2,19,23 News Corp. .3...... 0 Washington Mutual.24 ...... Caterpillar .1...... 6Fannie Mae .2...... 0 Sanofi-Aventis.8 ...... 110th Congress was convened Jan. WASHINGTON—The Senate’s fi- resentatives, which rejected an ear- Kanematsu .5...... Nissan Motor .6...... WellPoint.2...... 9 CBS .3...... 0Federal Agricultural Satyam Computer.23 ...... 4, 2007, as he has traveled across nancial-market rescue bill would lier version of the $700 billion plan Kerry’s Bromeliad Nursery 3 Nomura Holdings ...... 22,23 Serigraph .2...... 9WestLB .2...... 0 rcFaucompret EU Eric THE TO ACCESSION TURKISH Turkish Accession to China Petrochemical.6 ...... Mortgage .2...... 0 the country campaigning. Press Associated temporarily allow the Federal De- on Monday. the EU Satisfying the Copenhagen criteria Kraft Foods.5...... Northern Trust.24 ...... Shelbourne Development Wipro .2...... 3

and China Petroleum & Fidelity Management & U.S. presidential candidates Barack Obama, left, and John McCain, right, plan to The legislation would also in- oe Konings Jozef Las Vegas Sands.8 ...... Nuance Communications .8.. Group .1...... 6Xstrata ...... 4,20 Sen.McCain’svotingrecordmeans posit Insurance Corp. to borrow un- Chemical .6...... Research .3...... 0 that he has missed more votes than return to Washington to vote on the financial-rescue package in the Senate. limited amounts of money from the crease the government-deposit-in- Eric Faucompret and Jozef Konings anyothersittingU.S.senator.Sen.Tim Treasury Department in connection surance ceiling for banks and credit FREE daily access Johnson, a North Dakota Democrat with higher government bank-de- unions to $250,000 from $100,000 Routledge Studies in Middle Eastern Economies 1 to WSJ.com INDEX TO PEOPLE whowasoutfornearlyayearaftersuf- drop on Americans.Critics in the lib- Senate term. Sen. Sam Brownback, posit coverage that would extend un- for most depositors. This means the fering a brain hemorrhage, follows eral wing of the Democratic Party who ran for the Republican nomina- til the end of next year. FDIC will be responsible for insur- To win a copy of If you bought today’s paper from This index lists the names of businesspeople and government regulators witha47% absentee rate. called Sen. Obama’s vote a flip-flop; tion,hasmissed142votes duringthe This is important because it ing a lot more money if more banks “Turkish Accession to the EU,” a retail outlet, simply register at: who receive significant mention in today's Journal. McCain spokesman Tucker he had pledged earlier to filibuster session. Missing key votes has would increase the backstop the fail, which could put extreme pres- from Eric Faucompret and Bounds said the Arizona senator the measure. opened some candidates to criti- FDIC has to make sure insured de- sure on its already low deposit-in- wsj.com/reg/coupon For more people in the news, visit Jozef Konings, email us your full continues to represent the interests It isn’t unusual for senators run- cism.Sen.JohnKerry,the2004Dem- positors can be reimbursed if their surance fund. At the end of the sec- or renew at: wsj.com 1 CareerJournal.com/WhosNews contact details with “Turkey” in of his constituents, despite missing ning for president to miss numerous ocratic presidential nominee, was bank fails. ond quarter, the FDIC had roughly the subject field. Reply by noon Today's code is: EUROPE-F-614 votesduringthecampaign.Sen.Hill- criticizedinradioadsfromPresident $45 billion in its insurance fund to CET October 8, ‘08 to the votes. “The people of Arizona are FDIC and Treasury officials Adelson, Sheldon.8 ...... DeQuadros, Conrad.20 ...... Ludeman, Danny.24...... Rodkin, Gary .17...... address below. Winners will be proud that their senior senator is ary Clinton, who ran unsuccessfully George W.Bush’scampaignformiss- asked senators Tuesday night to in- back close to $4.5 trillion in insured THE WALL STREET JOURNAL EUROPE (ISSN 0921-99) Ailman, Christopher.24 .... Forssell, Andy.30 ...... Messinger, Dyke.3 ...... Ruskin, Alan.22 ...... representing their views and values to be the Democrats’ standard- ing more votes in 2003 than any clude a provision in the revised res- deposits. informed by email. Boulevard Brand Whitlock 87, 1200 Brussels, Belgium Ballmer, Steve.16...... Glaser, Rob .3...... 0Mohr, Patrick.22 ...... Ryding, John.20 ...... Telephone: 32 2 741 1211 FAX: Business: 32 2 732 1102 out on the campaign trail,” he said. bearer this year, missed 200 votes other senator. Sen. Obama took heat cue bill that would increase the The last time the FDIC borrowed For rules and responses contact: Baronoff, Steven A..19... . Greenberg, Maurice R..24 . Montalvo, José García.10 . Schwan, Severin.8 ...... News: 32 2 741 1600 Editorial Page: 32 2 735 7562 Sim, Boon .2...... 2 He added that Sen. McCain decided while campaigning. Sen. Joe Biden, duringtheprimaryseasonfromrival amount the FDIC could borrow from money from the Treasury Depart- [email protected] SUBSCRIPTIONS, inquiries and address changes to: Blair, Chris .2...... 3Hart, Ian .2...... 2Mulva, James .6...... Telephone: +44 (0) 207 309 7799 Calling time from 8am to 5.30pm GMT Brandon, David.17 ...... Henderson, Fritz.6...... Mutascio, Christopher.24 . Simons, Howard.2...... to vote on the banking legislation be- the Democratic vice-presidential Sen. Clinton. The New York senator Treasury to $100 billion from $30 ment was when the agency tapped a The Wall Street Journal Europe E-mail: [email protected] Website: www.services.wsje.com Sinche, Robert.22...... saidhewas“missinginaction”when is read every day by 27,000 Braunstein, Douglas.19 ..... Herndon, Kerry .3...... Mutkin, Laurence.21 ...... cause “when you’re staring an eco- nominee, had missed a similar num- billion. But lawmakers decided to separate Treasury Department win- Advertising Sales worldwide through Dow Jones Smith, Brad .16...... students at 180 top business Buffett, Warren ...... 5,20 Immelt, Jeffrey.5 ...... Ohnishi, Masaru.23 ...... nomic crisis in the face, it’s impor- ber of votes during his unsuccessful the Senate passed a nonbinding vote do away with a cap, authorizing the dow during the savings-and-loan cri- International. Frankfurt: 49 69 971428 0; London: 44 207 842 9600; Specht, Birgit .2...... schools and university Paris: 33 1 40 17 17 01 Bush, Nancy .24...... Keyser, Teri .6...... Ore, Norbert .3...... Steer, Cynthia.24 ...... tant to be counted.” bid to become the party’s presiden- labeling Iran’s Republican Guard a FDIC to request from the Treasury sis. The money was used as short- campuses across Europe. Printed in Belgium by Concentra Media N.V. Printed in Germany by Dogan Carrig, John A..6 ...... Kirsch, David.32 ...... Owens, Jim .16...... Media Group / Hürriyet A.S. Branch Germany. Printed in Switzerland by Stephenson, Randall.16 .... Coming in third for absenteeism tial nominee. terrorist organization in September “a loan or loans in an amount or term funds while the agency dis- Books courtesy of Zehnder Print AG Wil. Printed in the United Kingdom by Newsfax International Cassidy, Gerard.24 ...... Kloppers, Marius.4 ...... Paulson, John.28 ...... Sterling, William.19 ...... is Sen. Obama, who has missed 303 Sen.ChristopherDodd,chairman 2007. amounts necessary … without re- posed of assets collected during Ltd., London. Printed in Italy by Telestampa Centro Italia s.r.l. Printed in Spain Cavaney, Red .6...... Landesman, Uri.22...... Petters, Tom.28 ...... by Bermont S.A. Printed in Ireland by Midland Web Printing Ltd. Printed in Israel Tang, Donald.23...... votes and last took a stand on a bill of the Senate Banking Committee, gard to limitations.” bank failures. The FDIC has never Craven, John .4...... Lee Sang-jae .2...... Phelps, Edmund S..15 ...... In July, Sen. McCain took Sen. by The Jerusalem Post Group. Printed in Turkey by GLOBUS Dünya BasInevi. Taylor, John .22...... July 9. Then, he voted in favor of the ran unsuccessfully for president Obama to task for missing the vote The unlimited borrowing au- had to use the $30 billion credit line. Registered as a newspaper at the Post Office. Davies, Mervyn.8 ...... Lerner, Bill .8...... Pötsch, Hans Dieter.8 ...... Thuestad, John.7 ...... Trademarks appearing herein are used under license from Dow Jones & Co. Davis, Mick .4...... Levchin, Max.30 ...... Quintás, Juan Ramón.10 .. Vgenopoulos, Andreas.28 .. Foreign Intelligence Surveillance when the subprime-mortgage mar- on the Iran measure. Within hours, thority would last until the end of There have been 13 bank failures © 2008 Dow Jones & Company All rights reserved. Editeur responsable: Daniel Hertzberg M-17936-2003 DeMatteo, Daniel A. .4..... Liddy, Edward.24 ...... Rabbani, Khaled.5 ...... Warren, Lee .6...... Act,ameasurethatexpandedthefed- kets began unraveling, and has reporters noted that Sen. McCain next year. The Senate has sched- this year, and regulators are expect- Deo, Stephane.20 ...... Liebelt, Graeme.8 ...... Ray, Dave .1...... 7Xiao Zongwei .6...... eral government’s ability to eaves- missed 171 votes during the current had skipped the vote as well. uled a vote on the proposal ing more in the months to come. 30 THURSDAY, OCTOBER 2, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. THURSDAY, OCTOBER 2, 2008 3 TECHNOLOGY JOURNAL THE FINANCIAL CRISIS

PERSONALTECHNOLOGY Arc of a diver The U.S. ISM Purchasing Managers Walter S. Mossberg Slide broadens its reach Fed weighs more interest-rate cuts Index, monthly data 65 ments company PayPal in 1998, said line news content via from NBC, The two areas has been among the little Their business had been slow for financing,” says Mr. Messinger. Revenue gains likely he expects the new service will en- Wall Street Journal and technology Manufacturing data, good news the economy has seen in a while, given their link to the con- “Others say they just have to put it 60 courage more marketers to adver- Web site CNET. recent weeks. struction business. “Our domestic off—even after we asked them if Fusion of Windows, Mac 55 in deals with CBS tise with Slide. “Television is a world Slide’s new online video service is auto sales suggest The Fed’s rate-setting committee business had fallen about 35% from there was some way we could help s expansion HERE ARE two common inside its own window on your that advertisers love,” he said. part of the effort to attract new view- is scheduled to meet next at the end the first of the year through about them bring the order back on.” He 50 methods for running Mi- Mac. Or, using a feature called and Time Warner Slide, like many software compa- ers and advertisers. The company’s economy is worsening of this month. Officials previously August,” says Dyke Messinger, chief says they have some international t contraction T crosoft Windows and Win- “Unity,” each Windows program nies targeting social-networking services draw more than 160 million have been willing to cut rates before executive of the family-owned busi- orders they can work on after a two- 45 dows programs on an Apple Macin- can float free, as if it were just an- By Jessica E. Vascellaro sites, has had trouble getting the at- viewers a month, according to re- By Sudeep Reddy, regularly scheduled meetings, as in ness based in Salisbury, N.C. But as week pause, as well as replacement tosh, and one of those methods other Mac program, with the Win- tention of big advertisers. The social search firm comScore Inc. But reve- Jon Hilsenrath January, if their already planned ac- the financial situation worsened in parts that need to be made, but he’s 40 just got better and easier. dows desktop invisible. If you mini- Slide Inc., a start-up best known networks often limit the types of ads nue—from selling online banner ads, And Timothy Aeppel tions could provide an added boost recent weeks, its customers, who already thinking he may face an- 35 The first approach uses a fea- mize a Windows program, it disap- for software tools that help people Slide and other service providers sponsorships and branded tools, to confidence and markets. typically finance purchases, sud- other shutdown in November. ’08’06’04’02 ture called Boot Camp that comes pears into an icon in the Mac’s personalize their profiles and amuse can sell. Advertisers also tend to pre- such as quizzes—remains small. The Federal Reserve officials are They’re likely to wait until after denly stopped ordering. One major Kerry Herndon, president of Ker- free on every new Mac. Using Dock, just as Mac programs do. themselves on social-networking fer purchasing ads from better- company wouldn’t disclose revenue weighing further interest-rate cuts, Congress decides on a rescue plan, order was yanked. “We haven’t had ry’s Bromeliad Nursery Inc. in Source: Institute for Supply Management Boot Camp, the entire Mac is Finally, you can devote the en- sites like Facebook and MySpace, is known Internet brands, rather than projections for this year. It expects even if Congress passes a $700 bil- to gauge whether confidence im- a domestic order in six weeks,” Mr. Homestead, Fla., a mass producer of turned into a Windows PC, with tire screen to the Windows desk- trying to prove it has staying power. smaller start-ups. $30 million to $50 million in 2009 lion rescue plan, in the face of new proves. Even if a plan is approved, it Messinger says. “At this point, inexpensive potted orchids sold in the full capabilities and speed of a top and hide the Mac operating The San Francisco company, be- Other developers are joining with revenue, according to people famil- evidence that the economic outlook could be weeks before it begins to that’s unprecedented.” retail stores such as Costco and since June. And more cuts will be standard Windows machine. No system entirely. gun in 2005 by Silicon Valley wunder- big media to expand audiences and iar with the matter. is deteriorating and financial condi- get implemented. Faced with such an abrupt dry- Home Depot nationwide, has just necessary, he says. What worries trace of the Mac operating system kind Max Levchin, Thurs- In March, Slide an- tions have gotten severely strained. Many manufacturers are already ing up of business, the company on one word to describe how he’s feel- him in particular is that the slow- is left running. The downside is ARALLELS can also do these day will kick off distribu- nounced it would focus on The Fed’s willingness to con- feeling pinched. Power Curbers Inc., Tuesday decided to shut its assem- ing: “terrified.” down is so widespread and is even that you can’t run Windows and things. Both programs can tion partnerships with just three products for sider more rate cuts marks a turn- which makes machines that lay side- bly line for two weeks, which means He started seeing a slowdown in occurring in places like wealthy sub- Mac programs side by side. P now also “mirror” your Time Warner Inc.’s Facebook: a service that around from a little more than two walks and curbs, is feeling the cold layoffs for most of its 100 workers. sales long before the financial crisis urbs and resort areas that long The second approach uses one most common Windows and Mac Warner Bros., CBS Corp., allows consumers to orga- weeks ago, when officials at a regu- blast of the credit crunch, like a large “Some of our customers have hit, and has cut more than 50 of his seemed immune to the ebb and flow of two third-party programs to file folders, so that, for instance, and Comcast Corp.’s E! nize and communicate lar September meeting declined to chunk of the U.S. factory economy. said specifically that they can’t get workers, about 20% of the total, of the larger economy. create a virtual Windows PC in- all of the files in your Mac’s Pic- Entertainment channel, with a group of “top move the central bank’s target fed- side your Mac. This faux Windows tures folder also appear in the My among others. Using a friends,” a greeting card- eral-funds rate from 2%. machine runs at normal speeds Pictures folder in Windows XP. new Slide video service, like service called “Super- A reduction in rates is still far and can operate simultaneously This is a new addition to Fusion, social-networking users Poke,” and “FunSpace,” from certain—in part because of lin- with the Mac’s as is the ability will be able to view free which includes the new gering inflation worries. But in addi- own operating to take multiple clips from shows such as video service. tion to severe blows to the financial ONLY ONE WATCH MANUFACTURE CAN SHOW YOU THIS. system. Pro- “snapshots” of NBC’s “Nightly News” Slide changed its ap- system sparked by the credit crisis, grams native to your Windows and “Beverly Hills proach earlier this year, economic data have become steadily each operating virtual machine, 90210.” dropping some services, worse in the past two weeks. system can run so if something The partnerships are such as one that distrib- The latest signals were abundant side by side. The goes wrong, you a sign of the maturation uted digital fortune cook- Wednesday. Auto makers were ham- downside is can roll back to of the growing business ies. “We asked ourselves,” mered in September by tight credit that, because a previous state of building services for said Mr. Levchin, Slide’s conditions and wavering consumers, Windows when things sites such as Facebook chief executive officer, with both Toyota Motor Corp. and doesn’t get com- were stable. and MySpace, which al- “can they generate cash Ford Motor Co. posting sales declines plete control of VMWare But Fusion low users to create per- and are they going to be of more than 30% from a year ago. the computer’s has some other sonal profiles and con- engaging to users a year The manufacturing sector hardware, it features Paral- nect those profiles with from now?” lurched sharply downward in Sep- isn’t quite as lels lacks. For in- others. As the social-net- Slide also raised new fi- tember after moderate weakness in fast as in Boot stance, it allows With Fusion’s ‘Unity’ feature, each working sites have nancing. In January, it an- the past year. The Institute for Sup- Camp, and a few you to automati- Windows program can float free, as if grown, so has the compe- nounced it received $50 ply Management’s monthly gauge of of its functions, cally take those it were just another Mac program. tition for viewers and ad- million from T. Rowe the manufacturing sector fell like 3-D graph- protective snap- vertisers. Price Associates Inc. and sharply, to its lowest level since Oc- ics, don’t work shots at timed Slide plans to sell ads Fidelity Management & tober 2001, indicating an overall as well. intervals. It also alongside the new con- Research Co. The funding economy in recessionary territory. This latter method is enabled permits you to completely custom- tent it will offer through valued the company at The index fell to 43.5 last month by two excellent, closely matched ize keyboard commands so that the the video service, called $550 million. from 49.9 in August. Figures below $80 programs: Parallels,froma same common key combinations “FunSpace Channels.” In Media companies so 50 indicate a contraction for the sec- Swiss-based company of the same work in both Windows and Mac pro- other cases, Slide will Zuma Press far seem enthusiastic tor, and the latest level generally cor- name, and Fusion, from VMWare, grams. It allows the faux Windows take a cut of ads that its Max Levchin co-founded PayPal before launching Slide. about Slide’s new video responds to overall economic a U.S. company. It is Fusion that machine to take full advantage of media partners sell. The service. Andy Forssell, se- growth of about 0.8%, the ISM said. just got better, because VMWare multiple monitors, if you have company hopes to distin- nior vice president of con- “Manufacturing had avoided just issued version 2.0 of the prod- them. ad revenue. San Francisco-based tent acquisition and distribution for much of the decline that we’d seen uct, with lots of new features, guish its video service from others Fusion also uses a more mod- Flixster Inc., which offers a service Hulu, an online video venture of NBC brought on by the financial-services some of which let it catch up to by recommending content based on ern and capable version of the pro- that allows Facebook users to rate Universal and News Corp, owner of sector,” said Norbert Ore, a Georgia- the older Parallels, and some of an unusual popularity measure: how prietary 3-D graphics system in and discuss movies, in August signed Pacific Corp. executive who directs which push it ahead. actively viewers forward clips to Wall Street Journal publisher Dow Windows, called DirectX. That a deal with Warner Bros. to promote Jones & Co. Mr. Forssell likens the ex- the survey of purchasing managers. their friends. means some Windows-only games “This month really was a big break ’VE BEEN testing Fusion 2.0 the distribution of its movies perience that Slide has created to an and other programs that won’t Mr. Levchin declined to comment in trend.” for a couple of weeks on two through Apple Inc.’s iTunes service. online version of gossiping around a work in Parallels will work in Fu- on financial details of the distribu- Meanwhile, a report on construc- different Macs, and using it to Another San Francisco developer, water cooler. “Half the fun is watch- I sion. I successfully tested two tion agreements. But the 33-year- Loomia tion spending showed that commer- run both Windows XP and Win- Inc., announced a deal in Jan- ing [the shows] and half the fun is such programs, both from Mi- old, who co-founded online pay- uary to distribute via Facebook on- talking about them,” he said. cial-building activity slowed in Au- dows Vista. My verdict is that crosoft: Worldwide Telescope and while you won’t go wrong with gust, adding to weakness in the resi- Photosynth. dential sector. Global indicators of Parallels, Fusion edges it out as And, in my experience, Fusion the better product. growth have also softened noticeably. is a bit faster than Parallels. Both “The global economy is sliding The new Fusion 2.0 is a free up- programs put a strain on your grade for owners of version 1.0. It Hollywood sues RealNetworks into recession,” J.P.Morgan Chase & Mac when performing major can be obtained at vmware. Co. economists warned clients in an tasks, like starting up or shutting By Nick Wingfield com/mac and at various retailers. der preventing RealNetworks from try pattern of trying to crush technol- email after the dismal round of man- down Windows. But Fusion seems Like Boot Camp and Parallels, selling the software, along with fi- ogies that give consumers flexibility ufacturing data. to affect the Mac less. And, unlike Fusion requires you to obtain and The major movie studios jointly nancial damages. in how they enjoy music, video and For Fed officials, the calculation Parallels, it can make Windows install a fresh, boxed, full version sued RealNetworks Inc. for releas- “RealNetworks RealDVD should other media. The Seattle company on rate cuts is complicated. Many be- of Windows on your Mac. But quicker by optionally assigning it ing a new program that lets consum- be called StealDVD,” Greg Goeckner, said it wanted to protect consumers’ lieve the Fed’s aggressive actions in once you’ve done that, your Mac control of the multiple “cores” in ers copy DVDs onto computers, in executive vice president and gen- “fair-use rights” to make copies of the past year—which brought the fed- becomes two computers in one. If most modern processor chips. the latest legal tussle between the eral counsel of the Motion Picture their own purchased DVDs. funds rate down from 5.25%—helped you need to run programs that are Fusion also offers a one-year entertainment and technology in- Association of America, the main “Our argument for the studios to cushion what could have been an available only on Windows, you free subscription to Windows secu- dustries over the boundaries be- lobbying arm of the movie studios, has been embrace technology—it even more severe blow to the finan- can do so with ease. rity software, while Parallels offers tween consumer rights and copy- said in a statement. “RealNetworks can help you create new business op- cial system. Mortgage interest rates, Our collection of mechanical calibres, all made in-house, is unique in the For instance, as I write this col- only a six-month subscription. right laws. knows its product violates the law portunities,” said Rob Glaser, chief for instance, have remained low, de- world with unparalleled breadth in shape, design and level of complication: umn on a MacBook pro laptop, us- However, Fusion has its limits. In the suit, filed Tuesday in fed- and undermines the hard-won trust executive of RealNetworks. spite the sharp tightening of credit in for every watch its own calibre. Throughout our 175-year history, we have ing a Macintosh word processor, I Like Parallels, it cannot run the eral court in Los Angeles, the Holly- that has been growing between The company says the software, the housing sector. produced over 1,000 different calibres. Out of the 60 calibres in creation am using Fusion 2.0 to simulta- 3-D visual effects in Windows wood studios alleged that RealNet- America’s movie makers and the which costs about $30, doesn’t vio- An even lower target rate could today, the most exceptional are shown here. Absolute leadership in the history neously run Google’s new Chrome Vista. And, in my tests, it works’ RealDVD program, which technology community.” late laws because it doesn’t break help to soften the credit blows that of fine watchmaking. browser, which is so far available wouldn’t allow Windows running went on sale Tuesday, illegally by- Representatives of the individual the copy-protection system de- are sure to build in the months for Windows only. I can switch be- on one of my Macs to use the passes copy-protection measures in- movie studios declined to comment signed to prevent rampant copying ahead in the wake of a bleak Septem- HAVE YOU EVER WORN A REAL WATCH? tween the two with a couple of printer that was configured on tended to prevent duplication of or couldn’t be reached. News Corp. of DVDs. Instead, RealDVD makes a ber that left credit markets barely keystrokes, and copy text from the Mac, although that feature DVDs. The plaintiffs—including owns Dow Jones, publisher of The copy of everything on a DVD, includ- functioning. one to the other. did work on my other test Mac. Walt Disney Co., Time Warner Wall Street Journal. ing the copy-protection system, and But Fed officials have been wary Like Parallels, Fusion allows In my view, Fusion is now the Inc.’s Warner Bros., News Corp.’s RealNetworks, which filed its puts it on a PC, layering on addi- of further easing. One worry: More Manufacture Jaeger-LeCoultre,Vallée de Joux, Switzerland, since 1833. you to run Windows programs in better choice for running Win- Fox, NBC Universal Inc.’s Universal own suit against the studios in fed- tional software protections to keep rate cuts could weaken the dollar www.jaeger-lecoultre.com one of three ways. You can see the dows on a Mac virtually. City Studios, Viacom Inc.’s Para- eral court in San Francisco just be- users from trading movies online. and push crude-oil prices up again, entire Windows desktop, with Win- mount and Sony Corp.—asked the fore their action, accused them of —Lauren A.E. Schuker making conditions even harder on dows programs running within it, Email to [email protected]. court for a temporary restraining or- continuing an entertainment-indus- contributed to this article. households. Improvement in the 4 THURSDAY, OCTOBER 2, 2008 THE WALL STREET JOURNAL. THURSDAY, OCTOBER 2, 2008 29 CORPORATE NEWS

WSJ.com CARTELS VIDEOGAMES CONFECTIONS 7 7 7 EU imposes record fines Gamestop will acquire Cadbury CFO will depart Two computers in one: Fusion upgrades U.S. companies press The Juggle program for using Windows on Mac for bailout package Should spouses be involved on makers of paraffin wax France’s Micromania in April to chair Inchcape Walter S. Mossberg reviews the new version of Businesses say borrowing is in each other’s careers? HE European AMESTOP CORP. ADBURY PLC’S execu- VMWare program. Better than Parallels > Page 30 getting tougher > Pages 16-17 > WSJ.com/Juggle Union imposed will acquire tive director and chief 7 7 T one of its highest- G French video- C financial officer, Ken ever cartel fines, accus- game retailer, Microma- Hanna, will step down in ing nine companies of nia for $700 million. April, the company said. fixing prices and mar- The Texas-based vid- Mr. Hanna, who will have kets for paraffin wax, eogame seller already served five years with Cad- used in products like operates in several mar- bury, is set to become nonex- Associated Press Associated

chewing gum, tires and GameStop kets overseas but ecutive chairman of interna- Gardasil debate reaches into immigration candles. doesn’t have any stores tional car retailer Inchcape Merck “There is probably not a household or company in France. It will acquire Micromania’s 332 French loca- PLC, the company said. He the U.S. government for its citizens of pediatrics at Wake Forest Univer- & Co., won U.S. Food and health clearance. Of the 14 required Advocates, experts becomes a must for green-card ap- sity School of Medicine in Winston- Drug Administration approval in vaccines, 13 are designed to combat

in Europe that hasn’t bought products affected by tions from private-equity fund L Capital Management, Press Associated has been a member of Inch- this ‘paraffin mafia’ cartel,” said EU antitrust com- bringing its world-wide store total to 5,889. cape’s board since 2001. criticize U.S. move plicants. After the immunization Salem, N.C. “HPV can only be com- 2006 for females ages 9 to 26, and infectious diseases that are trans- missioner Neelie Kroes, above. Chief Executive Daniel A. DeMatteo said GameStop London-based Cadbury said it has started an ex- committee of the Centers for Dis- municated by sexual contact.…This since then some public-health pol- mitted by respiratory route and are Sasol Ltd., ExxonMobil Corp., Eni SpA, Hansen & expects the Micromania deal to help it achieve per- ternal search for a new finance chief. ease Control and Prevention ad- is not something that endangers icy makers have argued that for considered highly contagious. Gar- Rosenthal, Tudapetrol, MOL Nyrt, Repsol SA, RWE share earnings growth of 25% or more in fiscal 2009 The maker of Dairy Milk chocolate and Trident to mandate vaccine vised last year that Gardasil be kids in a school setting or puts your young women, Gardasil should be in- dasil is the sole exception. The three- Total given to females ages 11 to 26 in the population at risk.” cluded alongside the standard re- dose regimen of Gardasil costs AG and SA will have to pay a total of Œ676 mil- and to add to its fiscal-fourth-quarter profit. For the chewing gum split from its U.S. beverages division, By Miriam Jordan lion ($951.6 million). South Africa’s Sasol was fined previous fiscal year, GameStop earned $288.3 million, Dr Pepper Snapple Group Inc., earlier this year. U.S., the recommendation became A spokeswoman for U.S. Citizen- gime of commonly administered $360, making it one of the priciest the most—Œ318 million. —WSJ News Roundup or $1.75 a share. —Kerry E. Grace —WSJ News Roundup an automatic requirement for pro- ship and Immigration Services said vaccines, such as mumps and menin- vaccines on the market; one dose is VEN as the medical com- spective immigrants when the gov- the requirement for the cervical- gitis. required of female immigrants ages munity debates the wide- ernment updated its list of vaccines cancer vaccine, along with other In the U.S., nearly 4,000 deaths 11 to 26. in July. mandated vaccines, reflects “a statu- spread use of Gardasil, a are caused by cervical cancer each Most critics of the government vaccine that helps pre- However, some of the CDC physi- tory requirement. It’s based on CDC year. In September, the FDA also ap- mandate say they aren’t playing vent cervical cancer, the cians and experts who promoted recommendations.” proved Gardasil for the prevention down the benefits of the vaccine. U.S.E government has made it a man- Gardasil in the U.S. say they never in- A CDC spokesman said the ex- of cancers of the vagina and vulva. However, some note that green- datory treatment for young women tended to make the vaccine manda- perts on the immunization commit- Still, some studies and experts card applicants already are paying seeking to immigrate to the country. tory for young female immigrants. tee didn’t realize their decision haveraisedquestionsaboutitseffec- Xstrata ends Lonmin bid application fees that can cost more The policy, which went into ef- “If we had known about it, we would affect tens of thousands of im- tiveness and safety, as well as UniCredit rebounds a bit fect Aug. 1, has angered some immi- would have said it’s not a good migrants. However, a government whether its blanket use among girls than $500, as well as shouldering grant advocates, who say that forc- idea,” said Jon Abramson, who was official said the cervical vaccine’s in- is necessary. They say that even if the cost of other vaccines. est bank by market capitalization. while increasing stake ing foreigners to take the costly vac- chairman of the CDC’s Advisory clusion on the list might be re- women get the pricey vaccine, they The drug has been a top seller for Italian government As the financial crisis spreads 52-WEEK SHARE PERFORMANCE cine saddles them with an unfair fi- Committee for Immunization Prac- viewed. need to continue having an annual Merck, generating more than $1 bil- from the U.S. to more parts of Eu- UniCredit By Robert Guy Matthews hedging that demand for commodi- nancial burden. The decision has tices when the body recommended Gardasil is hailed by many as a Pap screening since they could con- lion in revenue. However, a Merck And Dana Cimilluca announces measures rope, however, investors have be- On the Milan Stock Exchange ties will get stronger. also upset health-policy experts in the vaccine for U.S. citizens last breakthrough drug because it can tractHPVstrainsthevaccinedoesn’t spokeswoman said in a statement, gun to punish UniCredit for not be- Lonmin, based in London, said “We were not aware of the policy Wednesday’s close: Œ2.89, up 11% the U.S., who see the requirement as year. prevent infection by four strains of fight. to keep banks solid ing Italian enough. They fret that Spooked by uncertainty in the Wednesday it plans to become more and we did not lobby for this provi- 52-week change: down 54% excessive. “We don’t want someone coming human papillomavirus, including Foreigners in the U.S. or abroad UniCredit, unlike its more paro- credit markets and falling commod- efficient and improve its perform- The addition of Gardasil as a man- into the U.S. who hasn’t been vacci- two believed to cause 70% of all cer- who apply for permanent residency sion in any way.” She added that the NICREDIT SpA forged ahead chial Italian rivals, faces exposure Œ7 ity prices, Anglo-Swiss miner ance. “Xstrata’s attempt to acquire datory vaccine is the result of a 1996 nated against measles or chicken- vical-cancer cases. The viruses are must visit a U.S.-approved physi- pharmaceutical giant wouldn’t en- of other European banks in to the subprime mortgage crisis Xstrata PLC backed away from its Lonmin highlights the fundamental immigration law, which states that pox,” said Dr. Abramson, who is cur- transmitted through sexual contact. cian or clinic to get vaccines and un- gage in any efforts to address imple- 6 U developing sprawling cross- and the collapse of Lehman Broth- $10 billion offer for platinum pro- long-term value of Lonmin’s busi- any vaccination recommended by rently chairman of the department The vaccine, which is produced by dergo tests in order to receive mentation of the requirement. ness,” Lonmin Chairman Sir John border operations. But the finan- ers. 5 ducer Lonmin PLC. cial crisis has turned the Italian UniCredit stock has come in for But in a sign that it doesn’t be- Craven said in a prepared statement. bank’s strength into a source of a turbulent ride, which has seen it 4 lieve the world’s economic slump Xstrata already owned 10.7% of hernia operation that cost $3,900. worry for investors. cede its position as Italy’s biggest will last long, Xstrata increased its Lonmin’s struggling shares and His policy with Blue Cross & Blue Shares in the Italian bank par- bank by market capitalization to In- 3 stake in Lonmin to 24.9%, the maxi- bought 22.2 million more for an aver- Paying workers to go far afield for health care Shield of South Carolina has a tesa Sanpaolo. mum allowed before needing anti- age of £19.79 ($35.18) a share. That $10,000 deductible. Surgery would tially rebounded Wednesday, after 2 losing 21% of their value this week On Tuesday, billions were trust approval from some European was significantly less than the £33 a By M.P. McQueen Delhaize Group, expects the plan have cost about $13,000 in his state, shaved off UniCredit’s market capi- 2007 '08 regulators. The stake increase essen- share Xstrata plunked down for its will reduce the cost to the company he says, so he saved about $6,100. By Stacy Meichtry in Rome talization, as its shares plunged Source: Thomson Reuters Datastream tially blocks rivals from taking over initial offer in August. Lonmin re- Insured Americans are starting of each procedure by about 10%, The 62-year-old traveled free using and Sabrina Cohen in Milan 14%, forcing the Milan stock mar- Lonmin without Xstrata’s consent. jected that offer as too low. to see some unusual options in their says Peter Hayes, director of health- frequent-flier miles. “The hospital ket to suspend trading in the stock Xstrata’s decision to step back Since Xstrata made its offer, the health-provider networks: doctors care strategy. He said a hip-replace- is state of the art. The stuff is really and reaching a 10-year low, as in- for the rest of the day. Among the Italian banks are stable. The Bank from its offer shows that higher lend- price of platinum, which is mainly and hospitals in Singapore, Costa ment surgery in the U.S. averages up to date and modern and the doc- vestors fretted that the bank factors driving the sell-off were in- of Italy is set to accept a broader ing rates have made some proposed used for pollution-controlling cata- Rica and other foreign destinations. $45,000 to $50,000 but can be per- tors couldn’t have been better.” lytic converters in automobiles, has Estimates vary of the number of might have to be recapitalized. vestor fears that UniCredit might range of assets as collateral to as- mining acquisitions too expensive. In an effort to control rising costs, formed for $12,000 in Singapore. On Wednesday, the bank reaf- be undercapitalized. sist banks in need of liquidity, two Xstrata obtained the credit line fallen nearly a third. Car makers are Mr. Hayes said the program is still Americans who travel abroad for selling fewer automobiles as the a small but growing number of insur- firmed support for its chief execu- Some investors also think the people familiar with the matter needed to acquire Lonmin but didn’t new, and no employees have yet medical care. The Deloitte Center world’s economy weakens. In the ers and employers are giving people tive, and the Italian government an- bank’s German unit HVB Group said Wednesday. want to risk having to refinance a opted to have surgery abroad. for Health Solutions, a consulting U.S., where the automotive market the choice to seek treatment in other nounced it was prepared to take could be drawn into a consortium UniCredit also announced on substantial portion of the debt group, figures 750,000 patients trav- was already on the ropes, getting countries, a practice known as medi- Corporate Synergies Group Inc., measures to keep Italy’s banks on of commercial banks that will pro- Wednesday that it had spun off an within 12 months, as the credit line’s eled abroad in 2007 for in-patient credit to buy cars and trucks is ex- cal tourism. Until recently, most which advises companies on worker solid financial footing. UniCredit vide Œ35 billion to rescue German undisclosed portion of its real-es- terms required. and outpatient procedures, includ- pected to get even tougher as lend- Americans who traveled abroad for benefits, says at least a dozen of its shares rose 11% to Œ2.89 ($4.05) on real-estate lender Hypo Real Es- tate portfolio in a bid to reach its Another big pending mining deal— ing cosmetic and dental care. A ers increase their loan rates amid medical care were uninsured, or were clients with 250 to 2,000 employees the Milan stock exchange Wednes- tate Modling AG. 2008 target for Tier 1 capital ra- between BHP Billiton and Rio Tinto— study by McKinsey & Co. that looming financial uncertainty. seeking procedures not covered by in- are considering adding medical tour- day. Analysts note that stock market tio—a measure of capital against received approval Wednesday from counted only in-patient procedures, Under U.K. takeover rules, had surance, such as cosmetic dentistry ism programs in the next few years. mainly orthopedic and general sur- The turbulence cut the bank’s regulators in Italy have been slow risky assets. Italy’s finance minis- Australian regulators but still needs Xstrata followed through with a bid or aesthetic surgery. Now, a handful Among insurers, Blue Cross & gery, found that 8,500 Americans market capitalization to Œ38 bil- to respond to the challenges facing try, meanwhile, said the govern- a green light from European regula- for the whole company, it would of plans are beginning to cover treat- Blue Shield of South Carolina cre- travel to other countries annually. lion by the end of Wednesday’s a bank of UniCredit’s stature. ment, along with the Bank of Italy, tors, who are expected to rule at the Reuters have had to pay the same £33-a- ment overseas for heart surgery, hip ated a subsidiary for medical tour- ParkwayHealth, the largest private trading and prompted a UniCredit As the crisis gathered pace, Uni- was prepared to step in to ensure beginning of next year. BHP Chief Ex- The lobby of Bumrungrad Hospital in Bangkok, part of a network of international share price for the rest of Lonmin’s and knee replacements and other ma- ism called Companion Global health-care provider in Singapore, spokesman to strenuously deny ru- Credit shares remained one of the the stability of Italian banks. ecutive Marius Kloppers has said doctors and hospitals maintained by Blue Cross & Blue Shield’s medical-tourism unit. shares. That is about a 100% pre- jor surgical procedures. Healthcare Inc., which maintains a says it treated 407 U.S. patients last mors that CEO Alessandro Pro- only big banking stocks that inves- Those moves, however, might that financing isn’t an issue in the all- mium to where Lonmin currently network of international doctors year, nearly double the number fumo was under pressure to re- not be sufficient to calm jitters stock deal. While medical tourism isn’t ex- trades. Lonmin’s stock, which had and hospitals. Among the listings: from a year earlier. sign. among UniCredit investors. After a Miners, buoyed by a couple of pected to be a solution to the coun- Long-distance travel also poses spe- tractive, plans that offer medical- tumbled in recent days on nervous- Bumrungrad Hospital in Thailand, Though some foreign facilities Unicredit’s woes mark a stark The bank denied string of dramatic European bank years of high commodity prices, try’s soaring health-care costs, the cial risks to patients, including tourism programs often throw in a bo- ness that Xstrata would walk away, and accredited institutions in Costa may be top-notch and some physi- change of tune for a bank regarded rescues in recent days, investors are seeing most prices for metals practice is intended to produce sav- blood clots from airplane flights nus for employees if they agree to un- dropped 20% Wednesday to £18.13. Rica, Ireland and Turkey. Anthem cians may be certified by U.S. as a trailblazer in Italian and Euro- rumors its chief have begun to question whether and minerals decline as economic ings for insurers, employers and and lack of legal recourse for negli- dergo elective surgeries abroad, or In a year, Xstrata can make a bid that workers. Open-heart surgery, which Blue Cross & Blue Shield, a unit of boards, some health-care officials pean banking. the 27-nation European Union is growth slows world-wide, includ- gence and malpractice, critics say. they offer to split the cost savings be- is lower than its initial offer. Xstrata can cost roughly $100,000 in the U.S., WellPoint Inc., says it plans to roll still advise caution. Evan Falchuk, Few bankers have been as ag- executive was under properly equipped to deal with the ing in China, which has been a prin- And follow-up care can be difficult tween the employer and worker. faced a Thursday deadline imposed can be done at an internationally ac- out a medical-travel benefit with president of Best Doctors Inc., an in- gressive or successful as Mr. Pro- ramifications of the global finan- cipal driver of demand. Despite to find once a patient returns home; Travel and accommodation costs also by U.K. market regulators to make credited hospital in India for just Serigraph Inc., a graphic arts com- ternational physician-referral ser- fumo in extending his bank’s opera- pressure to resign. cial crisis. the slower growth, mining compa- an offer for the rest of Lonmin or many U.S. physicians and dentists are sometimes reimbursed. $8,500, for instance. Proponents note pany in Wisconsin, in January. Seri- vice, says, “if something does come tions across the Continent. While UniCredit currently answers to nies retain large cash reserves and walk away. are reluctant to treat such patients Maine-based supermarket chain up, Americans are set up to handle a Italian rivals merged to create do- still expect the world’s hunger for that many international hospitals are graph says it plans to provide incen- more than half a dozen regulatory Xstrata’s decision to back off for fear of being exposed to malprac- Hannaford Bros. Co. this year began complication that other places are mestic behemoths such as Intesa tors could sell short. The short-sell- bodies across Europe. According to copper, iron ore, aluminum and staffed with American and European- tives for its 700 workers to travel to from its offer suggests that until tice lawsuits because of possible allowing its 18,000 insured workers less capable of dealing with.” Sanpaolo SpA, Mr. Profumo earned ing spree ended late Tuesday, theBrussels-basedthinktankBreu- other metals to grow in the long trained physicians. Many facilities a hospital in India for certain elec- market volatility subsides, financ- poor treatment abroad. and dependents to travel to an inter- Adds Joshua Jacobs, spokesman praise for keeping UniCredit’s fo- when Italy joined other European gel, UniCredit held more than 65% term, even if short-term prospects also are accredited by an affiliate of tive surgeries under its health plan. ing big takeover deals with debt will To be sure, most traditional em- nationally accredited hospital in Sin- for the American Academy of Ortho- cus on foreign expansion—a strat- nations in imposing restrictions of its total assets in European na- look shaky. be difficult. the Joint Commission, a nonprofit However, Medicare, the federal in- ployer health plans offer little incen- gapore for surgical hip and knee re- paedic Surgeons: “There are some egy aimed at weaning UniCredit on short-selling. “UniCredit was tions outside Italy in 2006, com- Sensing what CEO Mick Davis Xstrata has an investment-grade group that is the main accrediting surance program for older and dis- potential patient-safety concerns tive for workers to endure long placements. The company’s self- off Italy’s sputtering economy, and the perfect target,” says Marcello pared to an average of 24% among called a “current lack of clarity and credit rating and a strong track body for U.S. hospitals. abled people, generally doesn’t cover with having surgery overseas. We propelling it into the big leagues of Zanardo, a banking analyst with Europe’s 15 biggest banks. In 2007, certainty regarding the future avail- record for making deals. It had Whatever the qualifications of flights overseas for treatment: The funded plan, which is administered treatments abroad. don’t have data but we do have con- European banking. Keefe, Bruyette & Woods Ltd. UniCredit earned nearly half of its ability of credit,” Xstrata backed planned to finance the Lonmin offer doctors and hospitals abroad, some plans usually cover 100% of the cost by Aetna Inc., waives out-of-pocket Some individual policies offer cerns in a number of areas like It was under Mr. Profumo that By Wednesday the Italian gov- revenues from operations outside away from an outright acquisition in with $15 billion of debt from a group U.S. health practitioners remain con- of medical treatment once workers expenses, which can save patients medical-tourism options. Ben blood safety. Many patients need Unicredit acquired German bank ernment and Italy’s central bank Italy. favor of tapping some of the compa- of banks including Deutsche Bank cerned about such issues as the reach an out-of-pocket limit for co- up to $3,000, and reimburses all Schreiner, a retired executive for blood transfusions. Can you be sure it HVB Group AG in 2006—a deal that had mounted a full-court press —Luca Dileo in Rome ny’s huge cash reserves to increase AG, which also was advising Xstrata safety of blood supplies for transfu- insurance and co-payments. travel costs. Bank of America, recently traveled is free of viral pathogens like HIV or created the euro zone’s fourth-larg- aimed at reassuring investors that contributed to this article. its stake in Lonmin—essentially on the deal. sions and tissue for bone grafts. So to make travel abroad more at- Hannaford, a unit of Belgium’s to Clinica Biblica in Costa Rica for a hepatitis C?” 28 THURSDAY, OCTOBER 2, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. THURSDAY, OCTOBER 2, 2008 5 CORPORATE NEWS www.efinancialnews.com GE plans to raise capital More firms named in dairy case A WSJ NEWS ROUNDUP bury Chocolate Eclairs and Picnic tion and Quarantine Web site Tues- Hong Kong regulators said Bars. It also cleared Kraft’s Oreo day. Out of the 20 companies on Paulson-runhedge funds via Buffett, stock offering products made by Cadbury PLC, Wafer Sticks, which Indonesian the list, 15 hadn’t been named in Marfin to raise $7 billion Mars Inc. and Kraft Foods Inc. regulators had said tested positive previous tests. the company issued last week cleared tests for the industrial for melamine traces. The new batches were mostly ish private-equity group 3i Group bucking trend of losses Berkshire Hathaway when it cut prior projections. chemical at the center of a tainted Indonesian health officials also milk powder products for adults. A Aim is to consolidate 52-WEEK SHARE PERFORMANCE PLC’s market capitalization of The near-term fate of GE Capi- dairy-products scandal in China. had said they found traces of previous round of tests found Marfin Investment Group £3.7 billion ($6.58 billion). Like 3i, By William Hutchings year to the end of August, having will invest $3 billion tal depends on two sensitive cor- But 15 more Chinese dairy com- melamine in the Mars products. melamine in 69 batches of infant Greek bank sector; On the Athens Stock Exchange Marfin uses its balance sheet to do made 100.15% last year. Its Credit ners of the economy: commercial panies were identified Wednesday Cadbury pulled 11 Chinese-made milk powder. Opportunities II fund was up in preferred shares real estate and loans to midsize as making milk products contami- products from shelves, including Wednesday’s close: Œ4.92, down 1.6% deals, while the majority of other Hedge funds run by U.S. man- The new figure brings to at advisers weren’t told ager John Paulson, one of last 12.95%, having made 351.72% last businesses. The weakening eco- nated with the industrial chemical the eclairs, earlier this week as a 52-week change: down 21% private-equity companies use a least 100 the number of tested listed-fund model. year’s best performers and a short year; its Credit Opportunities By Donna Kardos nomic prospects of those sectors, melamine, authorities in China precaution after conducting its batches of milk powder found to By Toby Lewis Œ7 seller of U.K. banks, have bucked a fund was up 12.46%, having made amid the global financial crisis, said, widening a scandal affecting own tests. contain melamine. Product-safety And Dawn Cowie Marfin is raising the funds through a capital increase at Œ6 a trend of world-wide hedge-fund 589.62% last year; its Enhanced General Electric Co. disclosed are intensifying pressure on Mr. products ranging from baby for- The results “add to the over- officials couldn’t be reached for losses by making returns of more fund was up 8.17%, having made a $3 billion investment from War- Immelt, who already is planning mula to chocolate. whelming body of evidence that comment Wednesday, a national 6 share, even though its share price REEK INVESTMENT firm at Wednesday’s close was Œ4.92. than 19% this year. ren Buffett’s Berkshire Hathaway strategic changes in GE’s portfo- The contamination has been our high-quality products are holiday in China. Marfin Investment Hold- The firm’s book value of assets at One fund generated 589.62%. In- Inc. and announced an offering of lio. Among other things, the finan- blamed for the deaths of as many as clear of melamine,” said Khaled Thailand is testing nearly 100 ings 5 Paulson & Co. as a G SA made the unusual the end of June was Œ6 a share, vestors said the Paulson Advan- at least $12 billion in common cial crisis will make it more diffi- four children and kidney ailments Rabbani, Mars’s director of corpo- imports from China for possible move of announcing a Œ5 billion tage Plus and it is understood the firm is fund was one of the best stock. cult for GE to sell some divisions among more than 54,000 others. rate and regulatory affairs for the melamine contamination. Offi- ($7 billion) capital increase Tues- 4 whole managed raising funds at this price to re- performers this year, with a net re- The moves come as the con- and could hurt its earnings in com- Hong Kong’s Center for Food Asia-Pacific region. cials in Japan said the trading com- day without talking to its advisers turn of 19.44% through the end of glomerate, whose finance arm flect that. But it is unusual now to ing quarters. Safety said Wednesday it found An additional 31 batches of Chi- pany Kanematsu Corp. there be- first, despite grand plans to con- August. The fund made 158.75% $35 billion at the brings in nearly half its revenue, 3 raise funds without a shareholder In late-afternoon trading satisfactory results for melamine nese milk powder were found to be gan recalling a popular dessert im- solidate the banking sector. last year and, through a combina- has seen its stock pummeled by in- 2007 '08 discount to reflect the uncertain Wednesday on the New York Stock tests in several Western brands it tainted with melamine, according ported from China after finding The decision not to inform ad- tion of investment gains and new end of June. vestor worries amid the global Exchange, GE shares were down had tested, including Mars’ M&M’s to data on the General Administra- market conditions. chemical contamination in the visers of the plans has surprised Source: Thomson Reuters Datastream capital, has increased from about credit crisis. The Fairfield, Conn., 3.5% to $24.61. and Snickers products and Cad- tion of Quality Supervision, Inspec- treats. bankers, who are normally in- Mr. Vgenopoulos has pulled off $100 million at the start of 2007 to company had maintained that its fi- volved in providing advice on the similarly bold deals before. For nearly $9 billion. 116.48% last year; and its Interna- nance arm was having no troubles. state of the market at an early room for about two large banks, a Marfin’s Œ5.2 billion capital in- In 2006, Mr. Paulson decided to tional fund was up 5.17%, having That changed last week as GE stage and in bringing investors on medium-sized bank and a few crease last year, he attracted sub- take positions against subprime made 51.7% last year. cut its third-quarter and full-year board. Merrill Lynch & Co., Deut- small specialized banks. No banks stantial investments from Greek mortgages in the U.S., allowing his Paulson & Co. as a whole man- earnings guid- sche Bank AG and Citigroup Inc., have underwritten the transac- shipowners and the Dubai Finan- Credit Opportunities fund to aged $35 billion at the end of June, ance, citing “un- who advised on the firm’s Œ5.2 bil- tion and no investors have commit- cial Group, along with about 30 or- profit from the housing turmoil, making it one of the largest 10 precedented lion capital raising in the summer ted so far, he said, but some had ders of more than Œ50 million each while the ensuing credit crunch hedge-fund managers. Last week, weakness and of 2007, weren’t contacted by An- been receptive in shows. by hedge funds and long-only has eroded rival hedge funds’ re- it disclosed short positions in volatility in the dreas Vgenopoulos, executive vice The size of the capital raising, funds, according to a person in- turns. HBOS PLC, Lloyds TSB Group PLC, financial-ser- president of Marfin Investment which is to be approved at the volved with the transaction. Dubai The hedge-fund industry as a Barclays PLC and Royal Bank of vices markets,” Group and founder of sister Greek firm’s extraordinary general meet- Financial Group, part of Dubai whole was down 4.85% for the year Scotland Group PLC. Its short posi- and announced retail bank Marfin Popular Bank, ing of shareholders Oct. 27, will Holding, which is owned by the to the end of August, according to tions, which will have made money a number of ma- before the announcement. make the Marfin possibly the larg- ruler of Dubai Sheik Mohammed the non-investable index pub- as the banks’ share price fell, jor moves—in- Mr. Vgenopoulos plans to use est listed private-equity fund bin Rashid Al Maktoum, subse- lished by U.S. data provider Hedge ranged from 0.9% to 1.8% of each cluding suspend- the funds to consolidate the Greek worldwide. It will be substantially quently increased its stake to al- Fund Research. Paulson’s Advan- bank’s market capitalization. Paul- ing stock buy- banking sector, which he said has larger than FTSE 100-listed Brit- most 20%. tage fund was up 13.22% for the son & Co. declined to comment. backs and freez- Warren Buffett ing its divi- dend—to strengthen its capital and liquidity. Under the offering announced Gottex freezes one portfolio, Wednesday, the underwriters will Supported by have a 30-day option to buy shares representing another 15% of the of- moves to liquidate another fering amount to cover overallot- ments. GE expects to announce the Upcoming conferences and seminars; please reserve your places today!!! By David Walker fund predominantly invests in pricing of the deal before the mar- hedge funds that make direct loans ket opening Thursday. The event builds up on the success of previous year’s Technology for the Sell-Side conference that attracted more than 100 professionals within the industry. This year Technology for the Sell-Side is even more Gottex Fund Management, the to borrowers, taking control over Mr. Buffett’s deal with GE, their assets as security. Its asset- technology-focused with excellent speakers on board. Sponsored by: Swiss fund-of-hedge-funds man- which comes just a week after he WE PUT 24 WATCHES IN ONE. 14th October 2008, To register contact Anna on +44 (0) 20 7426 3345 ager, has frozen redemptions on one backed investing fund does the made a $5 billion investment in Savoy Place, London or email: [email protected] major portfolio and is liquidating an- same thing, but also invests in some brokerage Goldman Sachs Group www.efinancialnewsevents.com/technologyss/ other. Both are involved in making of the companies it makes loans to. Inc., includes the purchase of per- direct loans to borrowers, a strat- However, a spokesman said the petual preferred stock from GE in This event will provide a platform for key top-level industry players, regulators and Shari’ah scholars to meet egy investors have held forth as re- ABL fund also had about 15% to a private offering, and rights to and discuss the most pressing industry topics. In collaboration with: Technology partner: silient to current market turmoil. 20% of its assets in publicly traded purchase $3 billion in common To register contact Cordelia on +44 (0) 20 7309 7705 The Switzerland-based man- asset asset-backed securities prod- stock. The move by Mr. Buffett rep- 14th October 2008, or email: [email protected] Thomson Reuters ager cited poor investment per- ucts, which caused the losses, “and resents his second large expres- www.efinancialnewsevents.com/ifandethicalinvest08/ Building, Canary Wharf, Supported by: formance and unproven allega- the directors of the fund decided it sion of confidence in the financial London tions of fraud at U.S. firm Petters was in the best interests of the in- system since the credit crisis be- Group Worldwide Building on the success of our London edition this conference will bring together German and other European , a holding com- vestors that the ABL fund be gan to intensify in recent weeks. investors, to discuss the investment potential and best strategies for implementing ETF. pany of consumer brands ranging wound down.” Mr. Buffett tried to reassure GE www.efinancialnewsevents.com/conference/etffrankfurt from Polaroid to Mr. Coffee that These activities have become in- investors Wednesday by issuing a Sponsored by: Exhibitors: some of its underlying hedge funds creasingly popular with investors statement that 5th November 2008, are exposed to, as the reasons it as traditional lenders tighten the the company Hilton Hotel, Frankfurt, was closing its asset-based lending reins on lending. The strategy has has “strong glo- Germany fund of hedge funds. made 9.5% in the past 12 months, ac- bal brands and Special 2 for 1 offer on delegate fees – ends on 10th October 2008 Gottex has also struck difficulty cording to database Hedgefund.net, businesses with in another of its products—its fund far outperforming hedge funds gen- which I am quite Financial News This event will be exploring investment opportunities arising from latest developments in climate of asset-based investing hedge erally, which made 0.9% for their in- familiar. I am change. We will examine risk and return profiles for the renewable energy sectors as well as recent policies funds—because of its exposure to vestors. confident that and tax incentives affecting the industry. Panel Sponsor: 4th December 2008, www.efinancialnewsevents.com/conference/green08/ Petters Group, which has forced Got- In total, Gottex has about $3.9 GE will continue Merchant Taylors' Hall, tex to temporarily halt redemptions billion in asset-based lending strat- to be successful Early booking discount offer £595 + VAT extended to 24th October 2008 London from the fund until it is able to as- egies, which encompasses the two in the years to The 3rd Annual European Pensions and Savings Summit will be held at The London Marriott Hotel, Grosvenor sess the value of the portfolio, a main funds and accounts it man- come.” Square, on the 28th - 29th April 2009. This exclusive event for pension funds representatives, trustees and spokesman confirmed. ages separately for clients. The Jeffrey Immelt GE Chief Ex- consultants is a unique opportunity for all the senior industry representatives to meet and discuss the best ecutive Jeffrey solutions for the current challenges facing pension funds in Europe. “As soon as more information company’s flagship fund of hedge 28 - 29 April 2009, regarding the Petters Group-re- funds, which invests in hedge Immelt said the moves enhance For sponsorship opportunities please contact Ifeoma Bosah at [email protected] The London Marriott Hotel, lated investments becomes avail- funds that put roughly equal flexibility and allow the company Grosvenor Square www.efinancialnewsevents.com/conference/europass09/ able the ABI Fund will endeavor to amounts in long and short posi- “to execute on our liquidity plan REVERSO SQUADRA WORLD CHRONOGRAPH. Following on from the success in 2008, The India Summit 2009 will be held from 19 – 20 May at The London bring the period of suspension to tions, was also exposed to Petters, even faster.” Jaeger-LeCoultre Calibre 753/1000® Marriott Hotel, Grosvenor Square. an end as promptly as possible,” but to a lesser extent. Additionally, he said “it gives First-ever automatic movement with chronograph and 24 time zones on two For sponsorship please call Jacqueline Nuttall on +44 (0) 20 7309 7784 or email [email protected] the group said in a statement. us the opportunity to play offense faces, especially created for the swivel case of the legendary Reverso. 19 - 20 May 2009, www.efinancialnewsevents.com/conference/indiasummit09/ Petters Group has been at the — NOTICE TO READERS — in this market should conditions The London Marriott Hotel, center of a federal investigation in allow.” HAVE YOU EVER WORN A REAL WATCH? Grosvenor Square the U.S. that its managers produced The articles on this page on the Mr. Immelt reiterated the com- fake documents and showed them securities and investment-banking pany’s long-held commitment to For marketing and delegate information please email [email protected] to their investors stating they were industry are provided by Financial its AAA credit ratings and added for sponsorship opportunities contact [email protected] News, a Dow Jones company in Please make sure you visit www.efinancialnewsevents.com for further updates. Code: WSJE reselling goods at a profit. Petters that the GE continues to “success- Group’s Tom Petters, who denies London that publishes the fully meet our commercial-paper Manufacture Jaeger-LeCoultre,Vallée de Joux, Switzerland, since 1833. the charges, has resigned as chief Financial News Web site (www.efi- needs.” www.jaeger-lecoultre.com executive. nancialnews.com) and Financial Mr. Immelt also reaffirmed the Gottex’s asset-backed lending News weekly newspaper. third-quarter and 2008 guidance 6 THURSDAY, OCTOBER 2, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. THURSDAY, OCTOBER 2, 2008 27 CORPORATE NEWS BLUE CHIPS & BONDS

Below, a look at the Dow Jones Stoxx 50, the Dow Jones Industrial Average biggest and best known companies in Europe, P/E: nil Major players & benchmarks including the U.K. LAST: 10831.07 t 19.59, or 0.18% Conoco picks a president YEAR TO DATE: t 2,433.75, or 18.3% Dow Jones Stoxx 50: Wednesday’s best and worst… OVER 52 WEEKS t 3,136.98, or 22.5% company by market capitalization. nity. In addition to working on the Carrig is now in line He is a longtime ally of Conoco- Conoco-Phillips merger, he helped Market value, Previous in billions close, in STOCK PERFORMANCE High Phillips’s current Chief Executive the company make its $6.5 billion Company Country Industry of US$ local currency Previous session 52-week Three-year 12500 to lead oil company; James Mulva. Mr. Mulva, 62, has acquisition of Atlantic Richfield UniCredit Italy Banks $54.0 2.89 11.26% –54.0% –37.9% Close said he plans to retire in about Co.’s Alaska assets in 2000, and 50–day Low UBS Switzerland Banks 51.5 19.70 6.72 –67.1 –60.1 moving average lawyer climbs ranks three years. worked on multibillion deals to ac- 12000 Taking over the top spot may be quire refiner Tosco Corp., natural- ING Groep Netherlands Life Insurance 46.1 15.85 6.16 –50.4 –35.4 t By Russell Gold a tricky transition for Mr. Carrig, gas producer Burlington Re- AXA S.A. France Full Line Insurance 70.0 24.23 5.83 –24.6 8.5 however, because the current-day sources Inc., and a minority stake Barclays U.K. Banks 49.2 3.41 4.44 –45.3 –39.1 11500 ConocoPhillips promoted John ConocoPhillips is very much the in Russian’s OAO Lukoil. A. Carrig to president and chief op- creation of Mr. Mulva. He has put Sig Cornelius, one of two veter- Daimler Germany Automobiles $43.7 32.38 –8.55% –55.6 –27.2 more of a personal imprint on the ans of premerger Conoco in a se- 11000 erating officer, putting him in line L.M. Ericsson Tel B Sweden Telecom Equipment 26.0 60.60 –5.31 –54.1 –57.3 to become the next chief executive company he runs than the chief ex- nior position, will become the new of the Houston-based oil company. ecutives other oil giants like Exxon chief financial officer. John Lowe, ArcelorMittal Luxembourg Iron & Steel 67.8 33.42 –4.94 –38.6 ... The move preserves ConocoPhil- Mobil Corp. and Chevron Corp., the the current head of exploration BHP Billiton U.K. General Mining 47.8 12.09 –3.97 –30.8 40.9 10500 lips’s tradition of being led by fi- largest U.S. oil companies. and production, will become a part- Siemens Germany Electronic Equipment 81.6 63.73 –3.07 –35.5 –0.5 nancial executives; many other Mr. Mulva orchestrated the time special assistant to Mr. Mulva AFP large oil companies are run by pe- merger of Conoco and Phillips Pe- at the beginning of next year. Auto makers reported sharp declines in U.S. auto sales for last month. 10000 troleum engineers or other offic- troleum and has built the company The company also said it had ...And the rest of Europe’s blue chips 3 11 18 25 1 8 15 22 29 5 12 19 26 July Aug. Sept. ers with operational backgrounds. into a global oil powerhouse hired Red Cavaney, the former head Latest, Latest, Mr. Carrig, 56 years old, is a tax through a series of large acquisi- of the oil industry’s trade group, Market value, in local STOCK PERFORMANCE Market value, in local STOCK PERFORMANCE U.S. auto sales continue 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 lawyer who rose through the ranks tions and deals. He is known in glo- the American Petroleum Institute, Deutsche Telekom 68.6 11.24 4.36% –18.3% –25.7% Royal Bk of Scot 52.7 1.80 0.56% –61.2% –60.1% at Phillips Petroleum, serving as bal oil circles as a deal maker who to head its Washington D.C. lobby- Germany (Mobile Telecom) U.K. (Banks) DJIA component stocks treasurer and then chief financial is easy to work with. ing effort and its public affairs de- Banco Santander 95.5 10.91 3.90 –21.1 0.7 E.ON 100.2 35.77 0.53 –15.8 42.1 Spain (Banks) Germany (Multiutilities) Volume, CHANGE officer. In 2001, he became the top Mr. Carrig has worked closely partment. Mr. Cavaney has headed to fall despite incentives Stock Symbol in millions Latest Points Percentage financial officer of ConocoPhillips with Mr. Mulva on a series of multi- the institute since 1997. He previ- Credit Suisse Grp 52.3 51.65 3.51 –36.7 –10.8 Rio Tinto 65.6 34.87 0.46 –17.1 57.5 Switzerland (Banks) U.K. (General Mining) AT&T T 35.80 $28.09 0.17 0.61% billion deals that turned Phillips Pe- ously served on the White House By Shara Tibken GM announced new incentives when the company was created Sanofi-Aventis S.A. 88.4 48.01 3.14 –20.1 –31.8 Nestle S.A. 165.4 48.42 0.46 –5.4 25.1 Alcoa AA 21.70 21.27 –1.31 –5.80% through a merger. ConocoPhillips troleum from an also-ran into a full- staffs of Presidents Ronald Reagan, Wednesday to replace its employee- France (Pharmaceuticals) Switzerland (Food Products) AmExpress AXP 7.80 35.34 0.09 0.26% is the third-largest U.S.-based oil blown member of the Big Oil frater- Gerald Ford and Richard Nixon. U.S. auto sales fell in September pricing program. The auto maker British Amer Tob 67.7 18.90 3.00 10.5 58.3 Deutsche Bk 36.9 49.70 0.32 –48.0 –36.4 BankAm BAC 74.30 38.13 3.13 8.94% U.K. (Tobacco) Germany (Banks) despite sales incentives and falling planstoofferdiscountsofasmuchas Boeing BA 6.00 56.62 –0.73 –1.27% Astrazeneca 65.0 25.27 2.72 0.1 –8.2 Royal Dutch Shll 102.4 20.61 0.17 –26.9 –22.7 gasoline prices in what Ford Motor $5,000onsomepickupsandSUVS,in- U.K. (Pharmaceuticals) U.K. (Integrated Oil & Gas) Caterpillar CAT 15.20 56.95 –2.65 –4.45% Co. said was the weakest month yet cluding several 2009 models. Iberdrola S.A. 51.3 7.33 2.66 –29.4 24.7 GlaxoSmithKline 122.6 12.12 0.08 –8.7 –16.5 Chevron CVX 12.60 82.20 –0.28 –0.34% for the industry this year. Toyota’s fifth straight month of Spain (Conventional Electricity) U.K. (Pharmaceuticals) Citigroup C 150.70 23.00 2.49 12.14% “Consumers and businesses are sales drops shows how the Japa- France Telecom 74.4 20.33 2.65 –12.5 –13.2 BP 169.8 4.64 ... –16.7 –26.9 CocaCola KO 13.70 54.16 1.28 2.42% China energy firms broaden reach France (Fixed Line Telecom) U.K. (Integrated Oil & Gas) in a very fragile place,” said Ford nese giant—once considered almost Disney DIS 10.30 30.68 –0.01 –0.03% Unilever 48.9 20.37 2.57 –5.2 1.7 BASF 44.6 33.69 –0.18 –29.5 5.9 Chinese oil company Cnooc Ltd. marketing chief Jim Farley. immune to the economic forces that Netherlands (Food Products) Germany (Commodity Chemicals) DuPont DD 8.10 40.47 0.17 0.42% is bidding for natural gas assets in Buying up General Motors Corp. Chief Op- have battered its Detroit-based ri- HSBC Hldgs 196.3 9.22 2.36 –1.4 1.2 Allianz SE 60.9 96.08 –0.21 –41.8 –14.1 ExxonMobil XOM 29.50 78.58 0.92 1.18% U.K. (Banks) Germany (Full Line Insurance) the Caribbean, and is teaming up Cnooc’s completed M&A deals* since 2002 erating Officer Frederick “Fritz” vals—is also suffering. Toyota sold GenElec GE 173.10 24.18 –1.32 –5.18% with refiner China Petrochemical Henderson said he expects the U.S. 144,260 vehicles in September, com- Roche Hldg Part. Cert. 111.8 178.40 2.23 –16.0 –4.5 GDF Suez 111.8 36.42 –0.22 –0.9 32.4 GenMotor GM 14.90 9.45 0.00 0.00% Switzerland (Pharmaceuticals) France (Multiutilities) Corp. to buy a stake in an Angolan TARGET VALUE, IN MILLIONS DATE ANNOUNCED pared with 213,042 a year earlier. HewlettPk HPQ 21.00 44.97 –1.27 –2.75% auto-market weakness to continue Telefonica S.A. 112.9 17.14 2.08 –10.6 27.2 BNP Paribas S.A. 84.1 65.88 –0.30 –18.2 3.7 HomeDpt HD 19.30 25.92 0.03 0.12% oil field, the latest efforts by Chi- $2,692 mil. into 2009 as consumers worry Toyota, which is battling GM for Spain (Fixed Line Telecom) France (Banks) NNPC-OML 130 Jan. 8, 2006 Intel INTC 63.30 18.52 –0.21 –1.12% nese state-owned energy compa- about credit and gasoline prices. On the crown of the world’s best-selling Banco Bilbao Viz 61.3 11.69 2.01 –31.7 –19.8 Anglo Amer 43.9 18.48 –0.38 –44.0 14.6 nies to expand their global reach. Repsol YPF SA 592 Jan. 18, 2002 the bright side, GM said September auto maker, said passenger car sales Spain (Banks) U.K. (General Mining) IBM IBM 12.30 110.13 –6.83 –5.84% JPMorgChas JPM 56.90 49.63 2.93 6.27% Cnooc and China Petrochemi- marked its best monthly market fell 28% to 88,342, while SUV sales Soc. Generale 52.3 63.23 1.98 –45.6 –28.9 ABB 43.6 21.02 –0.47 –32.7 124.5 North West Shelf Gas 537 Aug. 23, 2002 France (Banks) Switzerland (Industrial Machinery) JohnsJohns JNJ 22.70 67.79 –1.49 –2.15% cal, known as Sinopec, are close to share in 2008. dropped 38% to 22,784. Toyota led Vodafone Grp 128.9 1.25 1.92 –26.9 –17.0 ENI 103.8 18.51 –0.48 –27.9 –20.7 KftFoods KFT 10.00 33.45 0.70 2.14% Tangguh LNG Project, Indonesia 275 Sept. 25, 2002 Ford, Toyota Motor Corp., GMinsalesinthefirst halfoftheyear U.K. (Mobile Telecom) Italy (Integrated Oil & Gas) McDonalds MCD 11.60 63.66 1.96 3.18% By David Winning in Beijing Honda Motor Co. and Nissan Motor and narrowly missed unseating GM Tesco 54.9 3.95 1.78 –14.9 27.5 Total S.A. 140.7 42.37 –0.50 –22.9 –20.7 Qinhuangdao 32-6 Oil Field 150 July 17, 2003 U.K. (Food Retailers & Wholesalers) France (Integrated Oil & Gas) Merck MRK 13.10 32.09 0.53 1.68% and Benoît Faucon in London Co. reported declines of 35%, 32%, astheworld’stopautosellerlastyear. Nokia 69.8 13.12 1.71 –49.5 –7.3 Intesa Sanpaolo 63.5 3.83 –0.52 –31.1 –1.0 Microsoft MSFT 77.00 26.48 –0.21 –0.79% MEG Energy 125 March 11, 2005 24% and 37%, respectively, while Ford sold 120,355 light vehicles, Finland (Telecom Equipment) Italy (Banks) Pfizer PFE 64.30 18.94 0.50 2.71% buying a stake held by U.S.-based GM rode its now-expired employee- down 35% from 183,769 a year ear- Diageo 47.6 9.59 1.48 –12.3 14.0 Koninklijke Philips Elec 27.7 18.90 –1.00 –39.9 –16.0 ProctGamb PG 16.50 71.27 1.58 2.27% Muturi PSC, West Papua 105 Feb. 1, 2004 U.K. (Distillers & Vintners) Netherlands (Consumer Electronics) Marathon Oil Corp. in an Angolan prices sales promotion to keep its lier. Ford truck and van sales fell 3M MMM 4.30 67.39 –0.92 –1.35% oil block, after agreeing to a price 39% with SUV sales tumbling 57%. Novartis 140.0 59.35 1.37 –7.6 –10.9 Assicurazioni Gen 45.6 23.08 –1.28 –25.1 –2.0 Liuhua 11-1 Oil Field, China 40 July 17, 2003 decline to 16%. Switzerland (Pharmaceuticals) Italy (Full Line Insurance) UnitedTech UTX 7.90 59.12 –0.94 –1.57% of around $1.8 billion, two people GM sales of cars and light trucks Honda’s sales fell 24% to 96,626, Verizon VZ 16.30 31.41 –0.68 –2.12% Widuri Oil Field 0.6 Jan. 13, 2002 Bayer 56.1 52.40 1.16 –5.7 72.7 SAP 64.6 36.99 –1.82 –11.2 2.9 familiar with those negotiations for September dropped to 282,806, with cars off 22% and trucks sliding Germany (Specialty Chemicals) Germany (Software) WalMart WMT 22.60 59.66 –0.23 –0.38% said Wednesday. Marathon has cho- Cnooc Finance not announced Sept. 5, 2003 from 334,974 a year earlier. There 27%. Volkswagen AG said its U.S. ve- Sources: Dow Jones Indexes; WSJ Market Data Group Source: WSJ Market Data Group sen Sinopec and Cnooc’s joint offer were 24 selling days, one less than a hicle sales for September fell 9.4%, over separate bids from ONGC * Includes Cnooc’s joint ventures with other companies Source: Thomson Reuters year earlier. Sales of trucks and to 17,109 from 18,891 a year earlier. Videsh Ltd., the overseas invest- sport-utility vehicles fell 19% to Hyundai Motor Co.’s U.S. sales fell ment arm of India’s state-run Oil & 164,366, while car sales declined 25%, to 24,765 from 33,214. Natural Gas Corp., and Brazil’s mining industries, according to sets in Trinidad and Tobago in the 9.8% to 118,440. Chrysler LLC’s sales fell 33% to Hedge funds Credit-default swaps: European companies Petróleo Brasileiro SA, known as data provider Dealogic. second half of this year, as part of a GM launched an employee-dis- 107,349 units from 159,799. The com- 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 Petrobras, the people said. The two new prospective deals strategic review. count promotion Aug. 20 in honor pany reported a 34% drop in truck how much a seller demands to sell-protection from default on an issuer's debt. The snapshot below gives a Convertible Arbitrage -3.98% -10.89% -13.2% -18.4% -18.3% It could take another two weeks represent partial departures from In the Angola deal, Sinopec and of its 100th anniversary, which sales, while car sales declined 29%. sense which way the market was moving yesterday. credit Merger Arbitrage 0.06% -3.88% -2.9% -2.4% -1.4% to finalize the deal, one person said. the usual overseas strategy of Chi- Cnooc still must negotiate other stemmed sales declines that month Nissan posted a 37% September Event Driven -2.59% -6.16% -8.2% -8.2% -9.0% Separately, Cnooc has bid be- na’s oil companies. Cnooc’s bid for terms of a sale-and-purchase agree- and prompted the incentive’s exten- drop to 59,565 vehicles from 94,269 Distressed Securities -2.00% -8.92% -10.7% -15.7% -17.8% Showing the biggest improvement... And the most deterioration tween $300 million and $700 mil- the Trinidad and Tobago assets sig- ment with Marathon for 20% of sion through September. a year ago. markets & Equity Market Neutral 0.02% -1.84% -5.6% -4.2% -2.6% lion for natural gas assets in Trin- nals a reentry into the Americas, a deep-water Block 32. The compa- Equity Long/Short -1.97% -6.75% -11.2% -9.0% -6.6% CHANGE, in basis points CHANGE, in basis points idad and Tobago that are currently region it had backed off from after nies will seek approval from the Yesterday Yesterday Five-day 28-day Yesterday Yesterday Five-day 28-day *Estimates as of 09/30/08, after fees; Source: www.djhedgefundindexes.com Gov & Co Bk Irlnd –201 Bay Landbk Giroz 9 owned by Talisman Energy Inc., a its failed 2005 bid for California- Chinese and Angolan governments 162 –106 –36 94 14 21 dealmakers Allied Irish Bks 141 –137 –107 –17 Pernod Ricard 320 12 40 43 person familiar with the matter based Unocal. The possible deal in before a deal is completed and an- Credit derivatives Dexia Cr Loc 418 –124 13 215 ProSiebenSat 1 Media 897 20 98 175 said. Angola is also unusual because Chi- nounced, the two people familiar Porsche wavers on outlook Fortis Bank 340 –78 112 227 Rep Iceland 582 20 234 323 Sinopec and Cnooc are China’s nese oil companies have typically with those talks said. Spreads on credit derivatives are one way the market rates Fortis NV 379 –63 199 275 Rep Irlnd 60 24 27 31 second- and third-largest oil pro- competed with each other in get- Lee Warren, manager of Mara- By Christoph Rauwald tember from the previous year, data creditworthiness. Regions that are treading in rough waters can KBC Bank 159 –21 47 74 Glencore Intl 401 24 60 220 ducers by capacity, after China Na- ting overseas assets, rather than thon’s external communications, And Steve McGrath from a French car makers associa- see spreads swing toward the maximum—and vice versa. Indexes Royal Bk Scotland 297 –18 125 181 Std Chartered Bank 162 27 61 89 tional Petroleum Corp. cooperate. declined to comment, as did tion showed, defying the downturn below are for five-year swaps. UBS AG 278 –17 57 154 Landsbanki Is 1208 37 291 737 China’s oil companies have Cnooc’s overseas business is Cnooc’s Mr. Xiao. Sinopec’s media- FRANKFURT—Shares in Porsche in the rest of Europe thanks to con- Markit iTraxx Indexes SPREAD RANGE, in pct. pts. ING Bank 168 –17 49 71 Glitnir banki 1478 50 158 631 relations department couldn’t im- Automobil Holding SE skidded amid sumer tax breaks for low-consump- Mid-spread, since most recent roll been stepping up their pursuit of largely focused on Nigeria and In- M real Corp 1166 –17 –81 –77 Kaupthing banki 1445 100 252 689 overseas assets as the country’s do- donesia currently, although it has a mediately be reached for comment. tumbling sales in key European mar- tion, low-emission vehicles. How- Index: series/version in pct. pts. Mid-price Coupon Maximum Minimum Average Europe: 10/1 1.21 99.95% 0.01% 1.25 1.19 1.22 Source: Markit Group mestic oil output stagnates, and its small foothold in Canada’s oil- Angola is a major supplier of kets and as the German auto maker ever, the increase reflected two more Eur. High Volatility: 10/12.21 99.93 0.02 2.38 2.16 2.28 supply of natural gas fails to keep sands sector. Calgary-based Talis- crude oil to China, and has been a revealed its normally robust growth working days this September. After Europe Crossover: 10/1 5.81 99.20 0.06 5.86 5.74 5.83 Behind Asia’s deals: Bank revenue rankings, Asia pace with the increase in demand. man’s daily output from Trinidad big recipient of loans and invest- had slowed. adjustment, September’s total was Asia ex-Japan IG: 10/1 2.15 99.34 0.02 2.15 1.99 2.07 The global economic slowdown and Tobago averaged 6,439 barrels ment from China in recent years. Porsche, which is in the usually down 1.4%. In Spain, car sales were Behind every IPO, bond offering, merger deal or syndicated loan is one or more investment banks. Here are Japan: 10/1 1.66 99.25 0.02 1.73 1.58 1.64 also has depressed the value of of oil equivalent last year, account- Block 32, where 11 successful ex- resilient high-end auto market, said down 32% in September. investment banks ranked by year-to-date revenues from recent deals. Note: Data as of September 30 some oil and gas fields, opening up ing for 2% of production from its in- ploration wells have been drilled, it couldn’t give an outlook in the Porsche, which this month in- PERCENTAGE OF TOTAL REVENUE opportunities. ternational business, the company is operated by Total SA of France, “present economic situation,” and creased its stake in Europe’s biggest WSJ.com In percentage points Revenue, Market Equity Debt Mergers & Just last week, Sinopec, parent said on its Web site. which owns a 30% stake. Sonangol, shares in other European auto mak- auto maker, Volkswagen AG, to Spreads in millions share capital markets capital markets acquisitions Loans Mizuho $247 5.7% 3% 66% 12% 19% of listed unit China Petroleum & Xiao Zongwei, head of investor Angola’s state oil company, owns ers declined. Porsche shares fell 35.14%, said revenue in the fiscal Follow the markets throughout Spreads on five- Index roll 4.00 Citi 235 5.4% 34% 27% 35% 4% Chemical Corp., struck a deal to relations at Hong Kong-listed 20%, while U.S. oil major ExxonMo- Œ6.44 ($9.06), or 8.5%, to Œ69.36 in year ended July 31 rose 1.3% to Œ7.46 the day, with updated stock year swaps for Japan High Volume t 3.00 Nomura 233 5.3% 38% 35% 26% …% pay $2 billion for Canada’s Tanga- Cnooc, declined to comment on bil Corp. owns 15% and a unit of Por- Frankfurt. billion. Daimler AG on Wednesday quotes, news and commentary corporate debt; Mitsubishi UFJ Securities 203 4.7% 4% 51% 21% 23% nyika Oil Ltd., which has oil fields any possible bid for the Talisman tuguese oil and gas firm Galp Ener- Auto makers are warning of a denied market speculation that it at WSJ.com/Europe. based on Markit 2.00

slowdown in global sales worsening was about to issue another profit UBS 175 4.0% 37% 16% 46% 1% in Syria. Chinese mining compa- assets. Talisman spokeswoman gia owns 5%. Marathon intends to Also, receive email alerts that iTraxx indexes. t 1.00 Daiwa Securities SMBC Co Ltd 171 3.9% 23% 57% 20% …% nies also are on a similar overseas Teri Keyser said: “There have been retain a 10% interest in Block 32 af- in the second half of 2008 and into warning, although it said conditions summarize the day’s trading in Australia buying binge. So far this year, Chi- a number of interested parties, but ter the sale. 2009 as the economic downturn had worsened. Europe and Asia. 0 JPMorgan 168 3.9% 23% 15% 59% 3% nese companies have completed it’s too early to say” what stage the —Hyun Young Lee in Ottawa and lack of available credit continue —David Pearson, Gordon Sorlini To sign up, go to April May June July Aug. Sept. Merrill Lynch 149 3.4% 36% 14% 45% 5% 2008 Credit Suisse 145 3.3% 39% 5% 34% 22% $26.3 billion of deals for busi- discussions are at. Talisman said and Shai Oster in Beijing to take a toll. and Jason Sinclair WSJ.com/Online Today nesses in the oil, natural gas and in May that it wanted to sell its as- contributed to this article. French car sales rose 8.4% in Sep- contributed to this article. Source: Markit Group Source: Dealogic 26 THURSDAY, OCTOBER 2, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. THURSDAY, OCTOBER 2, 2008 7 GLOBAL MARKETS LINEUP CORPORATE NEWS

Commodities Prices of futures contracts with the most open interest Currencies London close on Oct. 1 EXCHANGE LEGEND: CBOT: Chicago Board of Trade; CME: Chicago Mercantile Exchange; ICE-US: ICE Futures U.S.MDEX: Bursa Malaysia Per In Per In 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 4.3821 0.2282 3.1305 0.3194 Euro zone euro 1 1 0.7144 1.3998 Commodity Exchange Last price Net Percentage high low Brazil real 2.7072 0.3694 1.9340 0.5171 1-mo. forward 0.9985 1.0015 0.7133 1.4019 Alcoa to cut 660 jobs Corn (cents/bu.) CBOT 484.00 –3.50 –0.72% 799.25 258.50 Canada dollar 1.4869 0.6725 1.0623 0.9414 3-mos. forward 0.9982 1.0018 0.7131 1.4024 ously agreed to cost basis. Luminant nearly 30% of production costs. To Soybeans (cents/bu.) CBOT 1053.00 8.00 0.77% 1,636.75 622.00 1-mo. forward 1.4855 0.6732 1.0612 0.9423 6-mos. forward 0.9995 1.0005 0.7140 1.4005 3-mos. forward 1.4839 0.6739 1.0601 0.9433 Czech Rep. koruna-b 24.565 0.0407 17.549 0.0570 Smelter in Texas alleges that Alcoa wanted an unrea- mitigate expenses, aluminum com- Wheat (cents/bu.) CBOT 669.75 –10.25 –1.51 1,284.25 430.00 6-mos. forward 1.4840 0.6739 1.0601 0.9433 Denmark krone 7.4604 0.1340 5.3297 0.1876 sonably low-cost power supply. panies have been moving opera- Live cattle (cents/lb.) CME 100.475 0.100 0.10 115.325 96.900 Chile peso 777.59 0.001286 555.50 0.001800 Hungary forint 242.87 0.004118 173.50 0.005764 is being phased out Alcoa’s curtailment of opera- tions from high-cost power coun- Cocoa ($/ton) ICE-US 2,511 –47 –1.84 3,273 1,845 Colombia peso 3051.70 0.0003277 2180.10 0.0004587 Malta lira 0.4101 2.4387 0.2929 3.4137 tions at the Texas smelter this sum- tries such as the U.S. to relatively Coffee (cents/lb.) ICE-US 129.10 –1.35 –1.03 178.90 123.40 Ecuador US dollar-f 1.3998 0.7144 1 1 Norway krone 8.2805 0.1208 5.9155 0.1690 as demand wanes mer set the stage for it to phase out cheaper locations like Canada, Ice- Sugar (cents/lb.) ICE-US 13.93 0.27 1.98 15.85 9.89 Mexico peso-a 15.3888 0.0650 10.9936 0.0910 Poland zloty 3.3973 0.2944 2.4270 0.4120 operations completely. “When we land, the Middle East and Russia. Cotton (cents/lb.) ICE-US 58.34 1.09 1.90 98.45 55.11 Peru sol 4.1767 0.2394 2.9838 0.3351 Russia ruble-d 36.033 0.02775 25.741 0.03885 By Robert Guy Matthews initially curtailed half of our alumi- In New York, Alcoa’s shares were Crude palm oil (ringgit/ton) MDEX 2,090.00 –35 –1.65 3,665 1,988 Uruguay peso-e 29.816 0.0335 21.300 0.0469 Slovak Rep. koruna 30.3547 0.03294 21.6850 0.04611 num production in Rockdale, we down 5.7% at $21.30 in midafter- Cocoa (pounds/ton) LIFFE 1,460 –20 –1.35 1,706 979 U.S. dollar 1.3998 0.7144 1 1 Sweden krona 9.7278 0.1028 6.9494 0.1439 Citing continuing power-supply said it would be extremely challeng- noon trading Wednesday. Robusta coffee ($/ton) LIFFE 2,020 –24 –1.17 2,747 1,711 Venezuela bolivar 3005.79 0.000333 2147.30 0.000466 Switzerland franc 1.5699 0.6370 1.1215 0.8917 problems, lower prices and decreas- ing to try to be competitive operat- The Rockdale smelter won’t Copper (cents/lb.) COMEX 278.95 –8.95 –3.11 404.50 220.00 ASIA-PACIFIC 1-mo. forward 1.5653 0.6388 1.1182 0.8943 ing demand for aluminum, Alcoa ing only half of the plant,” said John close entirely. Some operations, Gold ($/troy oz.) COMEX 887.30 6.50 0.74 1,048.00 437.00 Australia dollar 1.7718 0.5644 1.2657 0.7901 3-mos. forward 1.5586 0.6416 1.1135 0.8981 Inc. said it will lay off 660 people by Thuestad, president of Alcoa’s U.S. employing about 140 people, will Silver (cents/troy oz.) COMEX 1277.00 49.50 4.03 2,155.00 601.00 China yuan 9.5788 0.1044 6.8430 0.1461 6-mos. forward 1.5548 0.6432 1.1107 0.9003 year end at its Texas operations and Primary Products business. “Unfor- remain open. But the move will re- Aluminum ($/ton) LME 2,425.50 –20.00 –0.82 3,340.00 2,390.00 Hong Kong dollar 10.8717 0.0920 7.7666 0.1288 Turkey lira 1.7855 0.5601 1.2756 0.7840 take a third-quarter pretax charge of tunately, the cumulative effect of op- duce Alcoa’s aluminum produc- Tin ($/ton) LME 17,600.00 500.00 2.92 25,450 14,545 India rupee 65.063 0.0154 46.480 0.0215 U.K. pound 0.7907 1.2647 0.5649 1.7703 about $48 million to cover the costs. erating only half of the smelter, well- tion, including the June shutdown, Bloomberg News/Landov Indonesia Copper ($/ton) LME 6,360.00 –38.00 –0.59 8,811.00 6,335.00 rupiah 13200 0.0000758 9430 0.0001061 1-mo. forward 0.7901 1.2657 0.5644 1.7717 The move comes amid tough known issues regarding the cost by about 270,000 metric tons a A worker performs a job at an Australian plant of Alcoa, which is trying to reduce Japan yen 147.82 0.006765 105.60 0.009470 3-mos. forward 0.7901 1.2657 0.5644 1.7717 Lead ($/ton) LME 1,825.00 unch. unch. 3,875.00 1,564.00 times for the aluminum industry, and long-term reliability of the year. More importantly, it reduces costs to compete against bigger rivals. 1-mo. forward 147.24 0.006792 105.19 0.009507 6-mos. forward 0.7927 1.2615 0.5663 1.7658 Zinc ($/ton) LME 1,665.00 –14.00 –0.83 3,169.50 1,638.00 which is experiencing falling prices power supply in Rockdale, and cur- the production of some of the com- 3-mos. forward 146.13 0.006843 104.39 0.009579 MIDDLE EAST/AFRICA Nickel ($/ton) LME 16,175 125 0.78 34,050 16,050 and increased competition for a rent market conditions, have forced pany’s highest cost aluminum. Al- 6-mos. forward 145.14 0.006890 103.68 0.009645 Bahrain dinar 0.5278 1.8946 0.3771 2.6521 Crude oil ($/bbl.) NYMEX 98.53 –2.11 –2.10 148.47 57.75 us to make this difficult decision.” coa smelts about 4.5 million tons operate its aluminum atomizer recent months as China, India and Malaysia ringgit-c 4.8188 0.2075 3.4425 0.2905 Egypt pound-a 7.6317 0.1310 5.4520 0.1834 shrinking market, and is an effort to Heating oil ($/gal.) NYMEX 2.8469 –0.0478 –1.65 4.2500 1.9895 New Zealand dollar 2.0787 0.4811 1.4850 0.6734 Israel shekel 4.8755 0.2051 3.4830 0.2871 reduce production and power costs Aluminum plants are heavy us- of aluminum production capacity a and anode operation in Rockdale. other emerging markets have re- RBOB gasoline ($/gal.) NYMEX 2.3600 –0.0977 –3.98 3.5475 1.9605 Pakistan rupee 109.184 0.0092 78.000 0.0128 Jordan dinar 0.9917 1.0084 0.7085 1.4115 to remain competitive against bigger ers of power, which accounts for year. Alcoa said it will continue to Prices of aluminum have fallen in duced consumption. Natural gas ($/mmBtu) NYMEX 7.728 3.90 0.290 13.998 4.750 Philippines peso 66.281 0.0151 47.350 0.0211 Kuwait dinar 0.3743 2.6719 0.2674 3.7401 rivals Rio Tinto and United Co. Rusal. Brent crude ($/bbl.) ICE-EU 96.75 –2.81 –2.82 150.12 54.51 Singapore dollar 2.0114 0.4972 1.4370 0.6959 Lebanon pound 2103.20 0.0004755 1502.50 0.0006656 The layoff at the Rockdale, Texas, Gas oil ($/ton) ICE-EU 910.75 –0.50 –0.05 1,357.50 739.00 South Korea won 1662.12 0.0006016 1187.40 0.0008422 Saudi Arabia riyal 5.2646 0.1899 3.7610 0.2659 smelter essentially closes the alumi- Taiwan dollar 44.858 0.02229 32.046 0.03121 num-productionoperationsthere.Al- Source: Thomson Reuters; WSJ Market Data Group South Africa rand 11.6113 0.0861 8.2950 0.1206 WSJ.com Thailand baht 47.593 0.02101 34.000 0.02941 United Arab dirham 5.1422 0.1945 3.6735 0.2722 coa closed roughly half the produc- Follow the markets throughout the day, with updated stock quotes, news and commentary at SDR -f 0.9052 1.1047 0.6467 1.5463 tion at Rockdale in June and laid off 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- about160peopleatthattimebecause To sign up, go to WSJ.com/Online Today national Monetary Fund ; based on exchange rates for U.S., British and Japanese currencies. of a conflict with a local utility com- Note: Based on trading among banks in amounts of $1 million and more, as quoted by Thomson Reuters. pany. Alcoa filed suit in August against Luminant Generation Co., claiming the energy company was Major stock market indexes Stock indexes from around the world, grouped by region. Shown in local-currency terms. charging Alcoa market rates for en- ergy, rather than selling it on a previ- Price-to- PREVIOUS SESSION PERFORMANCE Price-to- PREVIOUS SESSION PERFORMANCE 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. 11 EUROPE DJ Stoxx 600 257.75 1.70 0.66% –29.3% –32.8% … Russia RTSI 1189.06 –22.78 –1.88% –48.1% –43.2% 11 DJ Stoxx 50 2663.08 27.95 1.06 –27.7% –31.2% 10 Spain IBEX 35 11182.5 195.0 1.77% –26.3% –24.4% Australian panel 10 Euro Zone DJ Euro Stoxx 284.21 1.60 0.57 –31.5% –33.2% 15 Sweden OMX Stockholm 245.43 0.20 0.08 –30.2% –38.3% 10 DJ Euro Stoxx 50 3067.35 29.15 0.96 –30.3% –30.6% 12 Switzerland SMI 6727.63 72.74 1.09 –20.7% –26.0% clears BHP offer 8 Austria ATX 2767.38 –0.38 –0.01% –38.7% –41.0% … Turkey ISE National 100 36051.30 Closed –35.1% –33.4% 9 Belgium Bel-20 2716.48 44.28 1.66 –34.2% –38.0% 9 U.K. FTSE 100 4959.59 57.14 1.17 –23.2% –24.1% 11 Czech Republic PX 1235.3 30.6 2.54 –31.9% –32.7% 12 ASIA-PACIFIC DJ Asia-Pacific 112.51 1.96 1.77 –28.8% –33.1% to buy Rio Tinto ONE WATCH. TWO BRAINS. 12 Denmark OMX Copenhagen 326.26 1.15 0.35 –27.3% –32.3% … Australia SPX/ASX 200 4794.6 194.1 4.22 –24.4% –28.0% By Alex Wilson 9 Finland OMX Helsinki 6953.68 16.95 0.24 –40.0% –42.9% … China CBN 600 17780.97 Closed –57.1% –58.6% 10 France CAC-40 4054.54 22.44 0.56 –27.8% –30.2% 11 Hong Kong Hang Seng 18016.21 Closed –35.2% –34.4% MELBOURNE, Australia—BHP Billiton 12 Germany DAX 5806.33 –24.69 –0.42 –28.0% –27.0% 14 India Sensex 13055.67 195.24 1.52 –35.6% –26.8% ’s $119 billion bid to buy ri- val Rio Tinto cleared another hur- … Hungary BUX 19174.51 305.61 1.62 –26.9% –31.6% … Japan Nikkei Stock Average 11368.26 108.40 0.96 –25.7% –33.9% dle as Australian competition regu- 2 Ireland ISEQ 3641.29 90.66 2.55 –47.5% –56.5% … Singapore Straits Times 2358.91 Closed –31.9% –36.2% lators said they won’t oppose a deal. 8 Italy S&P/MIB 25681 151 0.59 –33.4% –36.5% 11 South Korea Kospi 1439.67 –8.39 –0.58 –24.1% –28.5% A decision by the European Com- 5 Netherlands AEX 334.24 2.79 0.84 –35.2% –38.2% 13 AMERICAS DJ Americas 296.71 –3.04 –1.01 –21.3% –24.3% mission, due Jan. 15, now stands as 7 Norway All-Shares 365.40 –10.22 –2.72 –35.9% –35.0% … Brazil Bovespa 49751.23 209.96 0.42 –22.1% –17.6% the last serious regulatory barrier 17 Poland WIG 37783.08 415.75 1.11 –32.1% –38.0% 12 Mexico IPC 25118.28 229.38 0.92 –15.0% –19.7% to the all-stock bid, which has been 11 Portugal PSI 20 7999.71 –33.52 –0.42 –38.6% –36.6% rejected by Rio Tinto. *P/E ratios use trailing 12-months, as-reported earnings Australian Competition and Con- Reuters Group PLC is the primary data provider for several statistical tables in The Wall Street Journal, including foreign stock quotations, futures and futures Note: Americas index data are as of 3:00 p.m. ET. Sources: Thomson Reuters; WSJ Market Data Group options prices, and foreign exchange tables. Reuters real-time data feeds are used to calculate various Dow Jones Indexes. sumer Commission Chairman Graeme Samuel said the deal would be unlikely to substantially lessen Dow Jones and Dow Jones Stoxx Indexes MSCI indexes competition even though it would combine two of the world’s three Price-to- Price-to- Developed and emerging-market regional and country indexes Dividendearnings PERFORMANCE (euros) PERFORMANCE (U.S. dollars) Dividendearnings PERFORMANCE (euros) PERFORMANCE (U.S. dollars) from MSCI Barra as of September 30, 2008 biggest suppliers of iron ore. 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. The commission had identified 2.93% 12 World -a % % 221.70 –0.13%–29.0% 4.56% 15 U.S. Select Dividend -b % % 736.00 –0.78%–20.2% Price-to- LOCAL-CURRENCY Dividend earnings PERFORMANCE iron ore as an area of potential con- 2.89% 12 Stoxx Global 1800 206.40 –0.62% –28.3% 215.83 –0.94%–29.1% 3.46% 15 Infrastructure 1487.50 0.27% –20.8% 1996.36 0.49%–21.1% yield ratio Morgan Stanley Index Last Daily YTD 52-wk. cern, but said Wednesday that there 3.77% 11 Stoxx 600 257.80 0.67% –32.8% 269.54 0.35%–33.5% 1.80% 10 Luxury 788.90 –1.01% –35.9% 941.51 –0.79%–36.2% ...% ... ALL COUNTRY (AC) WORLD* 294.79 1.62%–26.9% –28.4% has been significant expansion in 3.88% 10 Stoxx Large 200 279.70 0.89% –32.0% 290.87 0.57%–32.7% 1.67% 10 BRIC 50 351.60 0.34% –32.7% 471.90 0.56%–33.0% ...% ... World (Developed Markets) 1,182.44 1.62%–25.6% –27.6% the iron-ore industry. 3.09% 11 Stoxx Mid 200 223.00 –0.36% –35.7% 231.94 –0.67%–36.4% 5.26% 5 Africa 50 847.90 0.19% –20.7% 757.57 0.41%–21.1% ...% ... World ex-EMU 138.24 2.23%–23.6% –26.4% “The ACCC’s inquiries indicated 3.47% 10 Stoxx Small 200 140.50 –0.56% –37.4% 146.05 –0.88%–38.0% 6.58% 8 GCC 40 875.70 0.23% –8.5% 778.27 –0.09% –9.4% ...% ... World ex-UK 1,178.96 1.78%–24.8% –26.8% that the merged firm would be un- Euro Stoxx 0.57% 0.25% Sustainability –0.27% –0.45% 3.79% 10 284.20 –33.2% 297.21 –33.9% 3.55% 11 845.50 –29.5% 1000.84 –30.1% ...% ... EAFE 1,553.15 –2.25%–31.1% –32.5% likely to limit its supply of iron ore, Euro Stoxx Large 200 0.72% 0.40% Islamic Market % –0.77% 3.87% 10 306.30 –33.1% 318.27 –33.8% 2.35% 13 -a % 1831.97 –24.9% ...% ... Emerging Markets (EM) 786.92 1.53%–36.8% –34.7% given the uncertainty it would face Euro Stoxx Mid 200 –0.15% –0.47% Islamic Market 100 –0.81% –0.99% 3.31% 11 251.30 –33.5% 261.06 –34.1% 2.68% 12 1681.30 –22.9% 2017.37 –23.5% ...% ... EUROPE 89.49 1.85%–29.8% –32.2% in relation to the profitability of this 3.55% 10 Euro Stoxx Small 200 155.80 –0.27% –34.5% 161.73 –0.58%–35.1% 5.54% 7 Islamic Turkey -c 2352.40 % –21.2% % % ...% ... EMU 182.91 –1.51%–34.6% –33.5% strategy and the risk that limiting 9.20% 7 Stoxx Select Dividend 30 1626.60 0.63% –49.3% 1949.18 0.31%–49.8% 2.20% 17 Wilshire 5000 % % 11669.14 –1.74%–24.8% ...% ... Europe ex-UK 97.68 1.33%–29.9% –31.7% supply would encourage expansions 6.29% 7 Euro Stoxx Select Div 30 1931.80 1.79% –42.7% 2323.79 1.46%–43.3% % DJ-AIG Commodity 164.40 –0.05% –4.4% 167.15 –0.37% –5.3% ...% ... Europe Value 101.31 1.60%–33.2% –36.8% by existing and new suppliers as well *Fundamentals are based on data in U.S. dollar. Footnotes: a-in US dollar. b-dividends reinvested. c-in local currency. Note: All data as of 2 p.m. ET. Source: Dow Jones Indexes ...% ... Europe Growth 76.89 2.09%–26.4% –27.6% sponsorship of alternative suppliers ...% ... Europe Small Cap 144.82 1.27%–32.7% –37.7% by steel makers,” Mr. Samuel said. Cross rates U.S.-dollar and euro foreign-exchange rates in global trading ...% ... EM Europe 292.46 5.31%–39.2% –33.5% BHP Chief Executive Marius Klop- ...% ... UK 1,454.99 1.73%–24.3% –24.8% pers has said that he doesn’t believe DUOMÈTRE À CHRONOGRAPHE. Jaeger-LeCoultre Calibre 380/1000® USD GBP CHF SEK RUB NOK JPY ILS EUR DKK CDN AUD ...% ... Nordic Countries 132.70 0.36%–35.6% –41.0% the takeover will require any reme- Unprecedented “Dual-Wing” concept with two separate watch mechanisms Australia 1.2657 2.2408 1.1286 0.1821 0.0492 0.2140 0.0120 0.3634 1.7718 0.2375 1.1916 ...... % ... Russia 809.35 5.24%–46.1% –37.0% dies on competition grounds and synchronised by one single regulating organ. Especially created for the first-ever Canada 1.0623 1.8806 0.9472 0.1529 0.0413 0.1796 0.0101 0.3050 1.4869 0.1993 ... 0.8392 ...% ... South Africa 624.23 4.57%–12.5% –12.6% has argued that the enlarged group chronograph without a coupling-clutch, accurate to 1/6th of a second. Denmark 5.3297 9.4353 4.7523 0.7669 0.2070 0.9010 0.0505 1.5302 7.4604 ... 5.0173 4.2107 ...% ... AC ASIA PACIFIC EX-JAPAN 323.03 –2.73%–39.0% –39.6% will be able to bring on new sources Euro 0.7144 1.2647 0.6370 0.1028 0.0278 0.1208 0.0068 0.2051 ... 0.1340 0.6725 0.5644 HAVE YOU EVER WORN A REAL WATCH? ...% ... Japan 682.72 –3.85%–27.4% –33.8% of supply at a faster rate. Israel 3.4830 6.1661 3.1057 0.5012 0.1353 0.5888 0.0330 ... 4.8755 0.6535 3.2789 2.7517 ...% ... China 45.91 1.31%–46.2% –48.1% Japan 105.6000 186.9490 94.1596 15.1956 4.1023 17.8514 ... 30.3187 147.8189 19.8137 99.4116 83.4293 Australian and European regula- ...% ... India 508.84 1.94%–40.5% –27.5% Norway 5.9155 10.4725 5.2746 0.8512 0.2298 ... 0.0560 1.6984 8.2805 1.1099 5.5688 4.6735 tors have been sharing information ...% ... Korea 400.17 –0.67%–22.6% –24.5% Russia 25.7414 45.5713 22.9527 3.7041 ... 4.3515 0.2438 7.3906 36.0328 4.8298 24.2329 20.3370 so the green light in Australia could ...% ... Taiwan 223.72 –3.71%–33.0% –38.5% Sweden 6.9494 12.3029 6.1965 ... 0.2700 1.1748 0.0658 1.9952 9.7278 1.3039 6.5422 5.4904 bode well from BHP’s standpoint re- Manufacture Jaeger-LeCoultre,Vallée de Joux, Switzerland, since 1833. Switzerland 1.1215 1.9854 ... 0.1614 0.0436 0.1896 0.0106 0.3220 1.5699 0.2104 1.0558 0.8860 ...% ... US BROAD MARKET 1,281.37 5.08%–19.7% –22.7% garding the European Commis- www.jaeger-lecoultre.com U.K. 0.5649 ... 0.5037 0.0813 0.0219 0.0955 0.0053 0.1622 0.7907 0.1060 0.5318 0.4463 ...% ... US Small Cap 1,711.21 3.37%–13.8% –18.4% sion’s decision, seen by analysts as U.S. ... 1.7703 0.8917 0.1439 0.0388 0.1690 0.0095 0.2871 1.3998 0.1876 0.9414 0.7900 ...% ... EM LATIN AMERICA 3,186.40 6.08%–27.6% –23.0% the most significant regulatory bar- Source: Thomson Reuters via WSJ Market Data Group *Twenty-three developed and 26 emerging markets Source: MSCI Barra rier to a deal. 8 THURSDAY, OCTOBER 2, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. THURSDAY, OCTOBER 2, 2008 25 CORPORATE NEWS GLOBAL BUSINESS BRIEFS Advertisement [ INTERNATIONAL INVESTMENT FUNDS www.WSJ.com ] Advertisement 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 — Zentiva NV Bayer AG FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR Eurozone Agg Eq A EU EQ IRL 09/30 EUR 649.68 –32.2 –35.1 NS Alpha Short Bd SEK -D- NO MM LUX 10/01 SEK 8.73 2.0 2.8 2.8 Eurozone Agg Eq B EU EQ IRL 09/30 EUR 926.73 –31.9 –34.7 –13.3 Bond Fd EUR -C- EU BD LUX 10/01 EUR 1.24 2.4 3.1 0.9 PF (LUX)-CHF Liq-Pca CH MM LUX 09/29 CHF 123.80 1.5 2.1 1.9 Glbl Bd (EuroHdg) A GL BD IRL 09/30 EUR 1246.67 –3.6 –3.2 –1.5 Bayer PF (LUX)-CHF Liq-Pdi CH MM LUX 09/29 CHF 95.56 1.5 2.1 1.9 Bond Fd EUR -D- EU BD LUX 10/01 EUR 0.50 2.4 3.1 0.9 Zentiva holder raises stake AG said it received ap- Glbl Bd (EuroHdg) B GL BD IRL 09/30 EUR 1312.09 –3.2 –2.6 –0.9 PF (LUX)-Cnt Eu Eq-I EU EQ LUX 09/29 EUR 151.73 –31.8 –34.3 –12.5 Bond Fd SEK -C- NO BD LUX 10/01 SEK 38.72 2.5 3.3 2.0 proval from the European Commis- Glbl Bd A EU BD IRL 09/30 EUR 996.71 –1.1 –2.5 –4.0 PF (LUX)-Digital Comm-Pca OT EQ LUX 09/29 USD 88.22 –35.5 –33.1 –5.8 Bond Fd SEK -D- NO BD LUX 10/01 SEK 11.62 1.3 2.1 1.4 Glbl Bd B EU BD IRL 09/30 EUR 1053.30 –0.7 –1.9 –3.4 in challenge to Sanofi bid sion to start selling Xarelto, a new PF (LUX)-East Eu-Pca EU EQ LUX 09/29 EUR 269.60 –47.5 –42.6 –13.7 Corp. Bond Fd EUR -C- EU BD LUX 10/01 EUR 1.08 –7.8 –8.4 –4.6 Roche says bid is on track Glbl Real Estate A OT EQ IRL 09/30 USD 1001.85 –21.2 –29.7 –9.8 n THE NATIONAL INVESTOR PF (LUX)-Emg Mkts LC-Pca GL EQ LUX 09/30 USD 128.90 –44.2 –43.0 –4.8 Corp. Bond Fd EUR -D- EU BD LUX 09/30 EUR 0.85 –7.6 –8.6 –4.7 Glbl Real Estate B OT EQ IRL 09/30 USD 1025.12 –20.8 –29.3 –9.2 PO Box 47435, Abu Dhabi, UAE Web:www.tni.ae A private shareholder raised its type of oral drug aimed at preventing PF (LUX)-Emg Mkts-Pca GL EQ LUX 09/30 USD 422.43 –42.5 –40.7 –5.0 Corp. Bond Fd SEK -C- NO BD LUX 10/01 SEK 11.18 –7.3 –7.4 –3.8 Glbl Real Estate EH-A OT EQ IRL 09/30 EUR 943.80 –19.5 –28.6 –11.7 Email: [email protected] Tel:+971 2 619 2300 land, in July offered $89 a share for to financing than other companies. PF (LUX)-Eu Indx-Pca EU EQ LUX 09/29 EUR 96.96 –29.0 –31.3 –11.8 Corp. Bond Fd SEK -D- NO BD LUX 10/01 SEK 8.78 –7.2 –7.2 –3.7 stake in Zentiva NV, challenging blood clots. The pill will compete Glbl Real Estate SH-B OT EQ IRL 09/30 GBP 89.67 –18.3 –27.1 –9.9 PF (LUX)-EUR Bds-Pca EU BD LUX 09/29 EUR 364.14 0.8 0.6 –0.8 MENA Real Estate Acc Fund OT EQ ARE 08/29 USD 12.37 –16.3 NS NS Drug firm confident the 44% of Genentech it doesn’t al- Sanofi-Aventis Glbl Strategic Yield A EU BD IRL 09/30 EUR 1378.23 –7.8 –8.5 –2.0 Danish Mortgage Bond Fd EURNO -ID- BD LUX 10/01 EUR 97.62 NS NS NS Roche has contacted a handful French suitor Sanofi-Aventis SA, against SA’s PF (LUX)-EUR Bds-Pdi EU BD LUX 09/29 EUR 285.96 0.8 0.6 –0.8 UAE Blue Chip Fund Acc AS EQ ARE 09/18 AED 8.47 –27.3 1.1 –1.8 Glbl Strategic Yield B EU BD IRL 09/30 EUR 1463.79 –7.4 –7.9 –1.4 Danish Mortgage Bond Fd EURNO -RC- BD LUX 10/01 EUR 97.47 NS NS NS ready own. Genentech’s board re- PF (LUX)-EUR Cp Bd-Pca EU BD LUX 09/29 EUR 125.41 –4.4 –4.8 –2.9 of banks to gauge their interest in Lovenox, an injectable drug that Japan Equity A JP EQ IRL 09/30 JPY 13320.00 –28.4 –36.2 –18.9 Danish Mortgage Bond Fd SEKNO -ID- BD LUX 10/01 SEK 102.33 NS NS NS which is bidding to take over the PF (LUX)-EUR Cp Bd-Pdi EU BD LUX 09/29 EUR 91.42 –4.4 –4.8 –2.9 it can get financing jected the offer as too low. Japan Equity B JP EQ IRL 09/30 JPY 14092.00 –28.0 –35.8 –18.4 Danish Mortgage Bond Fd SEKNO -RC- BD LUX 09/30 SEK 956.81 NS NS NS providing loans to finance the Ge- racked up Œ2.6 billion ($3.66 billion) PF (LUX)-EUR HiYld-Pca EU BD LUX 09/29 EUR 124.07 –13.4 –15.4 –7.2 Czech generic-drug maker. Belvi- Multi St Cash Plus EH-A GL EQ IRL 09/30 EUR 1005.31 –0.7 –0.2 NS Flexible Bond Fd -C- NO BD LUX 10/01 SEK 20.18 2.2 2.9 2.6 PF (LUX)-EUR HiYld-Pdi EU BD LUX 09/29 EUR 80.24 –13.4 –15.4 –7.3 The Roche spokesman on nentech deal, according to people in sales last year. Drug companies be- PacBasn (Ex-Jap) Eq A AS EQ IRL 09/30 USD 1679.31 –36.5 –37.2 –3.3 Flexible Bond Fd -D- NO BD LUX 10/01 SEK 11.42 2.2 2.9 2.6 port Trading Ltd., a closely held PF (LUX)-EUR Liq-Pca EU MM LUX 09/29 EUR 133.52 2.8 3.8 3.4 for Genentech offer PacBasn (Ex-Jap) Eq B AS EQ IRL 09/30 USD 1778.47 –36.3 –36.8 –2.7 Wednesday declined to say familiar with the matter. Roche is lieve that oral drugs such as Xarelto PF (LUX)-EUR Liq-Pdi EU MM LUX 09/29 EUR 99.73 2.8 3.8 3.4 firm whose owners remain anony- Pan European Eq A EU EQ IRL 09/30 EUR 941.14 –30.8 –33.7 –14.2 n SEB Global Hedge PF (LUX)-Europ Eq-Pca EU EQ LUX 09/29 EUR 403.67 –33.8 –37.4 –15.0 whether the company planned to looking to raise about two-thirds could have an advantage as they Pan European Eq B EU EQ IRL 09/30 EUR 995.88 –30.5 –33.3 –13.7 Global Hedge I SEK -C- OT OT LUX 10/01 SEK 93.19 –12.2 –13.4 –4.7 mous, raised its holding in Zentiva PF (LUX)-EuSust Eq-Pca EU EQ LUX 09/29 EUR 128.19 –30.4 –35.0 –15.8 n TRIGON CAPITAL By Jeanne Whalen US Equity A US EQ IRL 09/30 USD 894.85 –22.9 –24.4 –5.0 Global Hedge I SEK -D- OT OT LUX 10/01 SEK 85.16 –14.8 –15.9 –6.1 raise its offer. Genentech, of South of the purchase price from banks, could be considered more convenient PF (LUX)-Gl Em Dbt-Pca GL BD LUX 09/29 USD 193.64 –3.5 –0.6 3.1 Phone +372 667 9208 Fax +372 667 9221 E-mail [email protected] Website www.trigoncapital.com to 10.06% from 6.08%, according to a US Equity B US EQ IRL 09/30 USD 950.97 –22.5 –24.0 –4.4 And Dana Cimilluca PF (LUX)-Gl Em Dbt-Pdi GL BD LUX 09/29 USD 138.06 –3.5 –0.6 3.1 Central and Eastern EuropeanEE EUR EQ EST 10/01 EEK 152.88 –43.0 –47.8 –21.0 San Francisco, Calif., didn’t re- according to one person. Roughly than Lovenox. Bayer and partner US Small Cap A US EQ IRL 09/30 USD 1385.22 –19.4 –22.8 –4.2 n SEB Sicav 1 regulatory filing in the Netherlands, PF (LUX)-Gl Eq Sel-Pca GL EQ LUX 09/29 USD 16.74 –31.1 –32.5 –11.7 New Europe Small Cap EUR EE EQ EST 10/01 EEK 81.34 –41.6 –47.0 –18.9 spond to a request for comment. Johnson & Johnson have applied for US Small Cap B US EQ IRL 09/30 USD 1472.96 –19.0 –22.3 –3.6 Choice Emerging Mkts Fd GL EQ LUX 10/01 USD 2.09 –37.3 –34.5 2.6 10 banks have responded to say where Zentiva is registered. Last PF (LUX)-Gr China-Pca AS EQ LUX 09/30 USD 260.14 –39.2 –40.8 5.2 Second Wave EUR EE EQ EST 10/01 EEK 159.34 –42.0 –45.3 –9.7 Roche Holding PF (LUX)-Indian Eq-Pca EA EQ LUX 09/30 USD 268.37 –49.4 –38.4 –1.1 Drug giant AG Genentech shares eclipsed $98 they are interested, though Roche Food and Drug Administration per- n SEB ASSET MANAGEMENT S.A. n SEB Sicav 2 month, financial company PPF PF (LUX)-Jap Index-Pca JP EQ LUX 09/30 JPY 10483.03 –26.2 –32.7 –16.4 said it remains confident it can www.seb.se Choice Asia SmCap exJpn AS EQ LUX 10/01 SEK 20.58 –38.4 –44.2 –13.3 after Roche’s initial offer but in re- hasn’t sent out proposed terms to mission to sell Xarelto in the U.S. Bris- PF (LUX)-Jp Eq Sel-Ica JP EQ LUX 09/30 JPY 9677.73 –27.8 –37.4 –21.1 Group NV and its insurance joint SEB Fund 1 Europe Chance/Risk Fd EU EQ LUX 10/01 EUR 1068.07 –37.2 –39.0 –17.0 raise the money it needs for its cent days have slipped to less than potential lenders. A person famil- tol-Myers Squibb Co. and partner PF (LUX)-Jp Eq Sel-Pca JP EQ LUX 09/30 JPY 9461.50 –28.1 –37.8 –21.6 Choice Global Value -C- GL EQ LUX 10/01 SEK 77.69 –33.4 –38.3 –17.2 $43.7 billion bid for full ownership venture with Italy’s Generali SpA PF (LUX)-JpEq130/30-Pca JP EQ LUX 09/30 JPY 5132.49 –25.5 –33.2 –20.9 Choice Japan Fd JP EQ LUX 10/01 JPY 57.36 –27.4 –34.7 –20.3 iar with the deal predicted Roche Pfizer Inc. are also racing to develop PF (LUX)-Pacif Idx-Pca AS EQ LUX 09/30 USD 215.18 –32.6 –33.5 1.6 Choice Jpn Chance/Risk JP EQ LUX 10/01 JPY 60.45 –32.5 –38.0 –19.0 of Genentech Inc., despite turmoil raised their combined stake to PF (LUX)-Piclife-Pca CH BA LUX 09/29 CHF 750.65 –11.6 –13.9 –5.3 could line up financing later this an oral anticlotting drug, and Germa- Choice NthAmChance/Risk US EQ LUX 10/01 USD 3.95 –24.3 –25.1 –7.1 n YUKI MANAGEMENT & RESEARCH CO., LTD. PF (LUX)-PremBrnds-Pca OT EQ LUX 09/29 EUR 56.67 –26.3 –31.6 –12.1 Europe 2 Fd EU EQ LUX 10/01 EUR 0.94 –34.7 –37.0 –15.5 in financial markets. The $43.7 billion 21.59% from 19.23%. Both compa- Boehringer Ingelheim Tel: +81-3-5299-3277 www.yukijapan.co.jp month. There is no guarantee that ny’s GmbH re- PF (LUX)-Rus Eq-Pca EE EQ LUX 09/29 USD 49.24 NS NS NS Europe 3 Fd EU EQ LUX 10/01 GBP 3.31 –29.7 –28.1 –8.3 YMR-N Growth Fund JP EQ IRL 09/30 JPY 10664.00 –36.4 –45.3 –25.3 Bankers are closely watching nies upped their holdings even cently gained approval to sell its oral PF (LUX)-Security-Pca GL EQ LUX 09/29 USD 83.11 –25.5 –28.9 NS Global Chance/Risk Fd GL EQ LUX 09/30 EUR 0.60 –24.1 –28.6 –13.4 Roche will be able to raise money n SG ASSET MANAGEMENT HTTP://WWW.SGAM.COM YMR-N Japan Fund JP EQ IRL 10/01 JPY 12219.00 –29.8 –40.8 –19.0 the deal, saying it will help show offer is seen as a though Zentiva’s board has formally PF (LUX)-Sm Cap Eu-Pca EU EQ LUX 09/29 EUR 429.61 –30.4 –35.0 –11.1 Global Fd GL EQ LUX 10/01 USD 2.18 –26.3 –28.8 –7.5 on attractive terms or proceed drug Pradaxa in Europe. PF (LUX)-US Eq-Ica US EQ LUX 09/29 USD 102.09 –20.7 –21.5 –4.5 Intl Mixed Fd -C- NO BA LUX 10/01 USD 26.83 –19.5 –20.6 –3.6 Eq. China A AS EQ LUX 09/30 USD 16.58 –49.9 –52.9 3.6 YMR-N Low Price Fund JP EQ IRL 10/01 JPY 15907.00 –30.3 –39.9 –21.3 whether there is still life in merg- backed Sanofi’s 43.86 billion korun PF (LUX)-USA Index-Pca US EQ LUX 09/29 USD 88.34 –23.8 –26.5 –7.8 Intl Mixed Fd -D- NO BA LUX 10/01 USD 18.93 –19.5 –20.6 –2.4 Eq. Pacific A AS EQ LUX 09/30 USD 8.29 –40.2 –39.8 0.3 YMR-N Small Cap Fund JP EQ IRL 10/01 JPY 7309.00 –41.0 –50.5 –30.9 with an offer. PF (LUX)-USD Bds-Pca US BD LUX 09/29 USD 492.86 4.4 7.9 5.6 Yuki Mizuho Gen Jpn III JP EQ IRL 10/01 JPY 5966.00 –35.8 –43.5 NS ers and acquisitions, outside finan- barometer for deal ($2.52 billion) bid. Sanofi already Wireless Fd OT EQ LUX 10/01 EUR 0.13 –32.1 –35.6 –10.1 n Bradford & Bingley PLC PF (LUX)-USD Bds-Pdi US BD LUX 09/29 USD 372.37 4.4 7.9 5.6 SGAM Fund Yuki Mizuho Jpn Dyn Gro AS EQ IRL 10/01 JPY 6366.00 –34.5 –44.2 –25.2 cial services. Anglo-Swiss miner The exact timing and price of owns 24.9% of Zentiva and its offer PF (LUX)-USD Liq-Pca US MM LUX 09/29 USD 129.48 1.9 3.0 3.9 n SEB Fund 2 Bonds CHF A CH BD LUX 09/29 CHF 27.10 3.9 3.9 0.4 Yuki Mizuho Jpn Exc 100 JP EQ IRL 10/01 JPY 8412.00 –32.9 –41.0 –23.2 any offer could hinge on data com- PF (LUX)-USD Liq-Pdi US MM LUX 09/29 USD 87.28 1.9 3.0 3.9 Choice Asia ex. Japan Fd AS EQ LUX 10/01 USD 5.53 –39.1 –41.1 –6.0 Bonds ConvEurope A EU BD LUX 09/30 EUR 30.48 4.8 7.1 9.2 Yuki Mizuho Jpn Gen JP EQ IRL 10/01 JPY 10388.00 –32.4 –43.9 –21.3 Xstrata PLC on Wednesday backed making generally . is contingent on gaining control of A rescue package for belea- PF (LUX)-Water-Pca GL EQ LUX 09/29 EUR 122.46 –21.6 –21.5 –6.4 Yuki Mizuho Jpn Gro JP EQ IRL 10/01 JPY 7659.00 –37.9 –46.4 –26.4 ing out next month from a clinical Currency Alpha EUR -IC- OT OT LUX 10/01 EUR 10.77 5.4 3.3 NS Bonds Eur Corp A EU BD LUX 09/29 EUR 20.49 –6.7 –6.8 –3.9 away from its $10 billion plan to ac- more than 50% of total shares. PPF, guered U.K. mortgage bank Brad- PF (LUX)-WldGovBds-Pca GL BD LUX 09/29 USD 152.27 3.5 7.1 6.5 Currency Alpha EUR -RC- OT OT LUX 10/01 EUR 10.72 4.9 2.8 NS Bonds Eur Hi Yld A EU BD LUX 09/29 EUR 17.90 –15.6 –17.2 –7.9 Yuki Mizuho Jpn Inc JP EQ IRL 10/01 JPY 10069.00 –23.2 –35.0 –15.1 PF (LUX)-WldGovBds-Pdi GL BD LUX 09/29 USD 128.86 3.4 7.1 6.5 quire platinum producer Lonmin trial of one of Genentech’s biggest Belviport and Slovak financial com- Currency Alpha SEK -ID- OT OT LUX 10/01 SEK 104.35 NS NS NS Bonds EURO A EU BD LUX 09/30 EUR 37.48 1.5 2.5 0.5 Yuki Mizuho Jpn Lg Cap AS EQ IRL 10/01 JPY 6492.00 –31.2 –39.6 NS ford & Bingley PLC doesn’t break Eu- PTF (LUX)-MidEast&NorAfr-PcaGL EQ LUX 09/29 USD 72.48 NS NS NS Currency Alpha SEK -RC- OT OT LUX 09/30 SEK 104.87 NS NS NS Bonds Europe A EU BD LUX 09/30 EUR 36.22 1.3 2.0 0.4 Yuki Mizuho Jpn LowP JP EQ IRL 10/01 JPY 13091.00 –27.7 –34.3 –18.9 drugs, Avastin. That data should Generation Fd 80 OT OT LUX 10/01 SEK 7.55 –20.2 NS NS Yuki Mizuho Jpn PGth JP EQ IRL 10/01 JPY 10148.00 –38.2 –45.2 –24.0 PLC, spooked by falling commodity Roche’s bid as investors have pany J&T, which holds 7.6%, have ropean Union state-aid rules, the Eu- n Bonds US MtgBkSec A US BD LUX 09/29 USD 22.69 –10.0 –8.4 –2.2 POLAR CAPITAL PARTNERS LIMITED Nordic Focus EUR NO EQ LUX 10/01 EUR 69.98 –29.3 NS NS Yuki Mizuho Jpn SmCp JP EQ IRL 10/01 JPY 7170.00 –43.4 –50.8 –29.5 show how well Avastin works in Bonds US OppsCoreplus A US BD LUX 09/29 USD 31.77 0.9 3.5 3.9 prices and the uncertainty of grown worried about the takeover yet to declare their intentions. ropean Commission said. The com- International Fund Managers (Ireland) Limited PH - 353 1 670 660 Fax - 353 1 670Nordic 1185 Focus NOK NO EQ LUX 09/30 NOK 71.80 NS NS NS Yuki Mizuho Jpn Val Sel AS EQ IRL 10/01 JPY 6658.00 –29.2 –37.8 –20.3 Bonds World A GL BD LUX 09/30 USD 37.36 0.5 4.7 6.0 going through. Genentech shares certain colon-cancer patients. If Asia Ex-Japan Fund USD AS EQ IRL 05/20 USD 1.12 –93.7 –93.8 –72.2 Nordic Focus SEK NO EQ LUX 09/30 SEK 72.08 –27.6 NS NS Yuki Mizuho Jpn YoungCo AS EQ IRL 10/01 JPY 3199.00 –44.0 –50.7 –41.3 credit markets. mission, the EU’s executive arm, Global Technology OT EQ IRL 09/30 USD 10.39 –28.2 –29.6 –9.9 Eq. ConcentratedEuropeA EU EQ LUX 09/30 EUR 26.63 –34.0 –35.7 –16.9 “We are confident to be able to were down 2.5% to $86.50 in late- the results are positive, they said it had been in contact with the Japan Fund USD JP EQ IRL 10/01 USD 13.78 –18.2 –23.0 –12.2 n SEB Fund 3 Eq. Eastern Europe A EU EQ LUX 09/30 EUR 25.20 –42.8 –40.1 –11.5 n Yuki 77 Series Tesco PLC Choice Asia Eq. ex Japan Fd AS EQ LUX 10/01 USD 0.99 –39.3 –41.5 –5.1 Eq. Equities Global Energy OT EQ LUX 09/30 USD 19.66 –22.0 –16.4 8.5 raise the required financing” for afternoon trading Wednesday on could improve Avastin’s sales pros- n Yuki 77 Excellent JP EQ IRL 10/01 JPY 5850.00 –33.9 –41.4 –22.0 U.K. government over the weekend Hemisphere Management (Ireland) Limited Choice North America Eq. Fd US EQ LUX 10/01 USD 1.84 –24.1 –25.4 –8.3 Eq. Euroland A EU EQ LUX 09/30 EUR 11.45 –33.8 –35.7 –15.0 Yuki 77 General JP EQ IRL 10/01 JPY 7748.00 –32.6 –42.2 –21.4 the Genentech deal, a Roche the New York Stock Exchange. pects and, thus, Genentech’s Retailer Tesco PLC said nonexec- to help design measures to protect Columbus USD A GL EQ CYM 08/29 USD 91.52 –9.3 –6.8 NS Ethical Global Fd GL EQ LUX 10/01 USD 0.82 –25.7 –28.9 –8.3 Eq. Euroland MidCapA EU EQ LUX 09/30 EUR 19.73 –31.9 –36.7 –16.4 Yuki 77 Growth JP EQ IRL 10/01 JPY 8175.00 –33.4 –42.6 –24.1 Discovery USD A OT OT CYM 08/29 USD 115.27 3.3 15.0 9.3 Ethical Sweden Fd NO EQ LUX 10/01 SEK 33.44 –24.9 –32.1 –9.4 Eq. EurolandCyclclsA EU EQ LUX 09/30 EUR 17.76 –29.9 –30.5 –6.4 spokesman said, repeating a com- Xstrata backed away from its of- value. As a result, some analysts Elbrus USD A GL EQ CYM 08/29 USD 12.17 –25.7 –10.6 12.4 n utive director Mervyn Davies has re- the bank from failure in a way that Europe Fd EU EQ LUX 09/30 USD 2.20 –38.1 –38.2 –3.4 Eq. EurolandFinancialA OT EQ LUX 09/30 EUR 12.53 –32.7 –35.7 –20.5 Yuki Chugoku Series Europn Conviction USD B EU EQ CYM 08/29 USD 118.01 3.3 9.2 7.2 ment Roche Chief Executive Sev- fer for Lonmin because it wasn’t predict Roche will want to agree signed because of potential con- would comply with EU law. The U.K. Global Equity Fd GL EQ LUX 10/01 USD 1.40 –25.8 –28.5 –6.2 Eq. Glbl Emg Cty A GL EQ LUX 09/30 USD 8.18 –39.5 –37.6 –3.1 Yuki Chugoku Jpn Gen JP EQ IRL 10/01 JPY 8140.00 –30.1 –42.2 –22.2 Europn Forager USD B OT OT CYM 08/29 USD 198.32 –3.3 –4.8 8.4 Index Linked Bd Fd SEK OT BD LUX 10/01 SEK 12.82 2.6 5.3 2.9 on a deal with Genentech direc- Eq. Global A GL EQ LUX 09/30 USD 26.41 –31.0 –33.5 –12.2 Yuki Chugoku Jpn Gro JP EQ IRL 10/01 JPY 6618.00 –34.4 –40.9 –20.6 erin Schwan made Sept. 16, just as able to borrow money on terms it flicts of interest as Tesco expands government has agreed to submit a Gl Utilities Abs Rtn USD A OT OT CYM 08/29 USD 100.13 –16.6 –10.7 –1.9 Medical Fd OT EQ LUX 10/01 USD 3.31 –14.1 –13.1 –3.3 Yuki Chugoku Jpn Inc JP EQ IRL 10/01 JPY 6717.00 –22.7 –30.6 –15.5 Eq. Global Technol A OT EQ LUX 09/30 USD 5.03 –29.1 –36.0 –13.4 tors before then. Japan Abs Ret USD A AS EQ CYM 07/31 USD 141.61 –9.5 –17.9 –7.4 Short Medium Bd Fd SEK NO MM LUX 10/01 SEK 9.06 2.0 2.8 2.7 Yuki Chugoku JpnLowP JP EQ IRL 10/01 JPY 9537.00 –26.8 –36.9 –16.8 the latest chapter of turmoil in fi- found attractive. Xstrata, like its financial-services business in re- restructuring plan for the bank Eq. Gold Mines A OT EQ LUX 09/30 USD 21.44 –28.5 –24.4 –4.6 Latin America USD A GL EQ CYM 08/29 USD 13.89 1.9 2.4 16.3 Technology Fd OT EQ LUX 10/01 USD 2.05 –27.9 –28.2 –6.7 Yuki Chugoku JpnPurGth JP EQ IRL 10/01 JPY 5981.00 –31.7 –42.8 –22.4 nancial markets was beginning. Roche, has an investment-grade —Ron Winslow gions similar to those of U.K. bank within six months that will then be Paragon Limited USD A EU EQ CYM 08/29 USD 307.57 11.9 27.2 21.1 World Fd GL EQ LUX 10/01 USD 2.04 –23.7 –26.7 –0.3 Eq. Japan A JP EQ LUX 09/30 JPY 895.90 –32.3 –38.1 –21.9 UK Fund USD A OT OT CYM 08/29 USD 169.04 6.3 1.9 6.1 Eq. Japan Sm Cap A JP EQ LUX 09/30 JPY 1054.58 –38.1 –41.8 –36.0 n Yuki Daishi Series Roche, based in Basel, Switzer- credit rating, giving it better access contributed to this article. Standard Chartered PLC. Mr. examined by the commission. The n SEB Fund 4 Eq. Japan Target A JP EQ LUX 09/30 JPY 1729.36 –14.6 –23.0 –14.0 n Yuki Daishi General JP EQ IRL 10/01 JPY 8824.00 –31.4 –41.7 –21.9 Davies, 55 years old, is chairman of U.K. Treasury said Monday it will PT CIPTADANA ASSET MANAGEMENT Short Bond Fd EUR EU MM LUX 10/01 EUR 1.26 1.0 1.4 2.1 Eq. Switzerland A CH EQ LUX 04/17 CHF 36.35 –16.6 –21.3 –4.3 n Standard Chartered. Tesco is close transfer the bank’s retail business Tel: 521-3479 Fax: 521-3478 Website: www.ciptadana-asset.com Short Bond Fd SEK NO MM LUX 10/01 SEK 21.30 1.5 2.4 2.5 Eq. UK A UK EQ LUX 09/30 GBP 11.20 –34.3 –37.6 –17.7 Yuki Hokuyo Japan Series Indonesian Grth Fund EA EQ CYM 09/17 USD 85.03 NS –19.7 2.2 Short Bond Fd USD US MM LUX 10/01 USD 2.48 1.1 2.3 3.3 Eq. US ConcenCore A US EQ LUX 09/30 USD 20.24 –24.6 –25.4 –7.3 Yuki Hokuyo Jpn Gen JP EQ IRL 10/01 JPY 5986.00 –32.1 –41.5 –20.3 to completing its £950 million and branch network to Abbey Na- Yuki Hokuyo Jpn Gro JP EQ IRL 10/01 JPY 4774.00 –40.6 –49.6 –28.5 n RUSSELL INVESTMENT GROUP n SEB Fund 5 Eq. US Lg Cap Gr A US EQ LUX 09/29 USD 14.19 –29.5 –30.4 –9.9 Eq. US Mid Cap A US EQ LUX 09/30 USD 27.44 –29.9 –30.9 –3.4 Yuki Hokuyo Jpn Inc JP EQ IRL 10/01 JPY 6795.00 –19.4 –30.7 –15.3 ($1.69 billion) acquisition of Royal tional, owned by Spain’s Banco Multi-Style, Multi-Manager Funds www.russell.com Alpha Bond Fd SEK -A- NO BD LUX 09/30 SEK 10.02 –1.9 –1.1 –0.1 Actions France A EU EQ IRL 09/30 EUR 728.20 –26.0 –28.4 NS Alpha Bond Fd SEK -B- NO BD LUX 09/30 SEK 9.00 –1.9 –1.1 –0.1 Eq. US Multi Strg A US EQ LUX 09/29 USD 21.07 –26.8 –29.7 –11.0 n Yuki Nishi Nippon City Japan Series Bank of Scotland Group PLC’s 50% Santander SA, and that the rest of Eq. US Rel Val A US EQ LUX 09/30 USD 22.14 –22.6 –28.3 –11.9 CEO bets big on Las Vegas Sands Core Eurozone Eq B EU EQ IRL 09/30 EUR 819.33 NS NS NS Alpha Bond Fd SEK -C- NO BD LUX 09/30 SEK 25.12 –2.0 –1.2 –0.3 Yuki Nishi-Nippon Cty GeneralJP EQ IRL 10/01 JPY 6417.00 –33.9 –43.6 –22.6 Eq. US Sm Cap Val A US EQ LUX 09/30 USD 20.49 –17.9 –25.3 –8.6 stake in Tesco Personal Finance the business would be nationalized. Euro Fixed Income A EU BD IRL 09/30 EUR 1165.30 –6.7 –7.6 –4.8 Alpha Bond Fd SEK -D- NO BD LUX 10/01 SEK 8.27 –3.1 –2.4 –0.9 Yuki Nishi-Nippon Cty PurGthJpJP EQ IRL 10/01 JPY 6017.00 –32.6 –40.8 NS By Tamara Audi when you have this dynamic where fected as U.S. banks. Euro Fixed Income B EU BD IRL 09/30 EUR 1234.73 –6.3 –7.0 –4.3 Alpha Short Bd SEK -A- NO MM LUX 10/01 SEK 10.73 2.1 3.0 2.9 Eq. US Value Opp A US EQ LUX 09/29 USD 18.30 –28.2 –33.6 –17.3 Group Ltd., which provides finan- Money Market EURO A EU MM LUX 09/29 EUR 26.85 3.2 4.3 3.9 n Yuki Shizuoka Japan Series you’re going to be looking to the mar- “We’re in the process of packag- Euro Small Cap A EU EQ IRL 09/30 EUR 1177.36 –33.1 –38.8 –18.8 Alpha Short Bd SEK -B- NO MM LUX 10/01 SEK 10.06 2.1 3.0 2.9 cial services such as loans, credit Straumur-Burdaras Euro Small Cap B EU EQ IRL 09/30 EUR 1251.74 –32.8 –38.4 –18.3 Alpha Short Bd SEK -C- NO MM LUX 10/01 SEK 21.00 2.0 2.9 2.8 Money Market USD A US MM LUX 09/30 USD 15.65 2.2 3.5 4.2 Yuki Shizuoka General Japan JP EQ IRL 10/01 JPY 6659.00 –30.4 –45.8 –21.1 In a sign of how credit turmoil is ket for years to come to raise capital ing that deal so it will be the least cards and savings accounts. Mr. forcing companies to look for new for development is trip covenants costly,” he said. He also said his loan Davies will have spent more than Straumur-Burdaras Investment sources of funding, Sheldon Adelson, and impact your credit,” said Bill to the company illustrated his own five years with Tesco when his resig- Bank agreed to buy the majority of Advertisement [ ALTERNATIVE INVESTMENT FUNDS www.WSJ.com ] Advertisement the billionaire chief executive and ma- Lerner,a gambling analyst with Deut- confidence that Las Vegas Sands nation takes effect on Oct. 31. the overseas corporate-finance and 12-month and 2-year returns may be calculated over 11- and 23-month NAV — %RETURN — NAV — %RETURN — jor shareholder of Las Vegas Sands sche Bank. would be able to weather the credit brokerage platforms of fellow Ice- 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 Corp., agreed to lend his gambling According to a Securities and Ex- crunch. “If I thought there was some landic investment bank Landsbanki NAV — %RETURN — Orica Ltd. n D'AURIOL FUNDS WWW.DAURIOL.BIZ GH Fund Inst USD OT OT JEY 08/29 USD 113.92 –3.0 3.3 8.4 INDICES company $475 million of his own change Commission filing, the terms issue about financing, would I have for Œ380 million ($534.9 million). FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR 2 FUNDS OF FUNDS OF HEDGE FUNDS GH FUND S EUR OT OT CYM 08/29 EUR 133.51 –2.3 3.6 7.8 NAV % RETURN cash. of the Las Vegas Sands credit facility put...almost a half a billion into the Orica Ltd., the world’s largest Straumur is acquiring 100% of D'Auriol Alt Non-Lev A EU OT CYM 08/29 EUR 121.66 –6.1 NS NS GH FUND S GBP OT OT CYM 08/29 GBP 138.36 –1.8 4.9 9.3 FUND NAME GF DATE CR NAV 1-WK 1-MO 1-Q 1-YR 2-YR The loan, announced Wednesday, dictate that the company’s debt can’t company?” maker of explosives, said Wednes- Landsbanki Securities (UK) Ltd., D'Auriol Opp F3 EUR EU MM CYM 08/29 EUR 1246.48 –9.0 NS NS GH Fund S USD OT OT CYM 08/29 USD 152.09 –2.6 3.9 9.0 n ARIX ABSOLUTE RETURN INVESTABLE INDEX will allow the Las Vegas company to exceed 7.5 times its cash flow. The $10 billion to $12 billion day that it has entered into a joint which includes the joint operations GH Fund USD OT OT GGY 08/29 USD 282.16 –3.5 2.6 7.7 Feri Institutional Advisors, www.feri.de Macau project, which will open in Hedge Investments OT OT JEY 08/29 USD 142.53 –2.9 3.0 7.8 ARIX Composite Gross USD OT 08/29 USD 1527.66 NS –1.2 –4.1 0.7 5.0 avoid breaking the terms of a $5 bil- Mr. Adelson had hinted in the com- venture with Southwest Energy of the former Teather & Greenwood Leverage GH USD OT OT GGY 08/29 USD 137.26 –10.0 –0.7 8.5 NAV — %RETURN — lion credit facility. The facility was pany’s most recent earnings confer- phases, is a sprawling complex that LLC to operate an explosives busi- and Bridgewell, Landsbanki’s Euro- n 788 ASSET MANAGEMENT LTD. MultiAdv Arb CHF Hdg OT OT JEY 08/29 CHF 107.57 –5.7 –4.6 0.6 FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR tied to certain cash-flow require- ence call in July that he might put his includes hotels, casinos, restaurants ness in the U.S. The Australian com- pean and U.S. business Landsbanki [email protected] www.788am.com 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 ments that the company risked miss- personal wealth into the company if and retail. It is expected to be com- pany will have a half stake in the Kepler, as well as Landsbanki’s 84% 788 China Fund Ltd OT OT CYM 08/29 USD 65.87 –78.2 NS NS n HARMONY CAPITAL MultiAdv Arb Inst USD OT OT CYM 06/30 USD 98.01 –0.8 NS NS ing, and breaking the covenant could necessary. pleted in 2012. business for an initial consideration stake in its Irish operation Merrion 788 China Smaller Cap OT OT CYM 08/29 USD 60.16 NS NS NS email: [email protected] MultiAdv Arb S EUR OT OT CYM 08/29 EUR 122.55 –3.8 –1.6 3.7 have affected its ability to borrow Even with Mr. Adelson’s loan, Las Major casino projects in Las Ve- of $32 million, comprising contrib- Landsbanki. Last year, the com- 788 Gl Asset Alloc. Fd OT OT CYM 08/29 USD 79.65 –44.5 NS NS Harmony Cap Ltd A USD OT OT BMU 08/29 USD 2134.00 –8.6 –6.8 0.5 MultiAdv Arb S GBP OT OT CYM 08/29 GBP 128.91 –3.0 –0.3 5.2 down the road, according to analysts. Vegas Sands faces some hurdles. The gas and elsewhere already have been uted businesses and cash, with a fur- bined revenue of the three was Œ232 788 Japan Fund Ltd OT OT CYM 08/29 USD 66.31 –46.4 NS NS MultiAdv Arb S USD OT OT CYM 08/29 USD 135.52 –4.2 –1.7 4.7 Harmony Cap Ltd B EUR OT OT BMU 08/29 EUR 2058.70 –8.3 –6.7 –0.3 n MERIDEN GROUP Mr. Adelson’s willingness to pony company is seeking $3.3 billion to re- canceled or postponed as gambling ther earn-out payment of up to million. They employ some 680 peo- Harmony Cap Ltd D USD OT OT BMU 08/29 USD 1225.00 –8.9 –7.2 0.1 MultiAdv Arb USD OT OT GGY 08/29 USD 212.06 –5.0 –2.9 3.3 Tel: + 376 741 175 Fax: + 376 741 183 Email: [email protected] n up his own cash indicates how diffi- finance an existing loan, and nearly companies struggle to come up with ALEXANDRA INVESTMENT MANAGEMENT Harmony Cap Ltd E EUR OT OT BMU 08/29 USD 1186.00 –8.4 –7.0 –0.7 Antanta Combined Fund EE EQ AND 09/19 USD 383.08 –53.9 –50.7 –33.2 about $60 million, it said. Orica ple in nine European countries and n HSBC Uni-folio Alexandra Global Inv I OT OT VGB 08/29 USD 48.85 –25.9 –18.6 –5.9 Harmony Cap Ltd F GBP OT OT BMU 08/29 GBP 1034.90 –7.9 –5.7 0.8 Antanta MidCap Fund EE EQ AND 09/19 USD 920.58 –49.2 –41.2 –10.7 cult borrowing has become, espe- $2 billion to finance a portion of its cash to finance them. Chief Executive Graeme Liebelt said the U.S. The announcement came Alpha AdvantEdge OT OT JEY 08/29 USD 124.20 –6.8 –2.3 3.4 Meriden Opps Fund GL OT AND 09/24 EUR 102.35 –8.7 NS NS cially in industries that depend on ac- latest project in Macau, China’s gam- Casino company MGM Mirage is the joint venture complements Ori- two days after Iceland’s Glitnir n Asian AdbantEdge EUR OT OT JEY 08/29 EUR 103.08 –13.1 –5.5 NS Meriden Protective Div GL EQ AND 09/29 EUR 83.20 2.6 –8.6 –8.5 n ATLANTIC INVESTMENT MANAGEMENT - NEW YORK, NEW YORK HERMITAGE CAPITAL MANAGEMENT LTD. cess to credit to fuel their operations bling enclave. seeking the final pieces of financing ca’s existing regional markets in cop- Bank, was effectively nationalized Tel: +7501 258 3160 www.hermitagefund.com Asian AdvantEdge OT OT JEY 08/29 USD 184.79 –13.5 –5.3 7.7 [email protected] Tel: +1 212 484 5050 and expansions. to finish its $9.2 billion condo and re- per, gold and molybdenum mining. in a Œ600 million deal. The Hermitage Fund GL EQ JEY 09/26 USD 1046.64 –41.2 –32.2 –13.6 Emerg AdvantEdge OT OT JEY 08/29 USD 176.63 –14.6 –5.1 6.7 Mr. Adelson said Tuesday the AJR International A US EQ VGB 09/24 USD 965.01 –8.9 –6.4 NS “This was the least costly and company might decide against refi- sort project, City Center, scheduled Emerg AdvantEdge EUR OT OT JEY 08/29 EUR 102.09 –14.4 –5.8 NS n OTHER FUNDS AJR International B US EQ VGB 09/24 USD 161.89 –8.9 –6.5 NS n HORSEMAN CAPITAL MANAGEMENT LTD. Europ AdvantEdge EUR OT OT JEY 08/29 EUR 133.01 –6.7 –5.5 2.1 best option for the company,” Mr. nancing the $3.3 billion loan “the to open next year on the Las Vegas For information about these funds, please contact us on Tel: +44 (0) 207 842 9694/9633 Nuance Communications Inc. Volkswagen AG Cambrian Asia Ltd. AS EQ VGB 09/24 JPY 7282.00 –25.4 NS NS T: +44(0)20 7838 7580, F: +44(0) 20 7838 7590, www.horsemancapital.com Europ AdvantEdge USD OT OT JEY 08/29 USD 138.64 –7.2 –5.6 2.9 Medinvest Plc Dublin OT OT IRL 07/31 USD 1418.59 –4.4 –1.3 7.1 Adelson said Tuesday evening. He more onerous the terms get in this Strip. Cambrian Europe Ltd. EU EQ VGB 09/24 EUR 81.88 –21.7 NS NS Horseman EmMkt Opp EUR GL EQ GBR 08/29 EUR 186.81 0.8 24.2 NS Japan AdvantEdge JPY OT OT JEY 08/29 JPY 8537.03 –9.1 –8.7 –9.3 Horseman EmMkt Opp USD GL EQ USA 08/29 USD 192.50 0.5 24.7 NS joked: “My wallet’s a little thinner.” market.” But he said the company MGM Mirage said it has more Nuance Communications Inc. ac- Volkswagen AG expects to export Cambrian Fund Ltd. A US EQ VGB 09/24 USD 604.39 –30.0 NS NS Japan AdvantEdge USD OT OT JEY 08/29 USD 99.02 –7.8 –5.9 –5.4 Horseman EurSelLtd EUR EU EQ GBR 08/29 EUR 205.28 14.3 25.6 24.4 Lvgd Alpha AdvantEdge OT OT JEY 08/29 USD 122.02 –15.9 –9.5 0.7 Investors and analysts had specu- is continuing to pursue financing than $2 billion in “commitments” quired a speech-recognition busi- 125,000 vehicles a year from the Cambrian Fund Ltd. B US EQ VGB 09/24 USD 147.45 –30.0 NS NS Horseman EurSelLtd USD EU EQ GBR 08/29 USD 214.34 14.1 25.7 25.6 Trading AdvantEdge OT OT GGY 08/29 USD 141.03 4.8 21.6 16.2 lated for weeks over how the gam- Philips Electronics Rodinia Fund Ltd US EQ VGB 09/24 USD 126.42 –12.3 –10.9 NS of the nearly $2 billion needed for from banks but still needs to raise ness from NV in plant it is building in the U.S., the com- Horseman Glbl Ltd EUR GL EQ CYM 08/29 USD 409.03 9.0 21.2 27.3 Trading AdvantEdge EUR OT OT GGY 08/29 EUR 127.62 4.5 20.2 14.6 bling company—best known for the the Macau project with Asian $500 million to complete the financ- a Œ66 million ($92.9 million) deal pany’s chief financial officer told ana- Horseman Glbl Ltd USD GL EQ CYM 08/29 USD 409.03 9.0 21.2 27.3 Trading AdvantEdge GBP OT OT GGY 08/29 GBP 133.66 6.2 22.9 16.7 n SUPERFUND ASSET MANAGEMENT GMBH Venice-themed Venetian resort in Las banks, which he said aren’t as af- ing package. that will expand its services in lysts Wednesday, according to a per- US AdvantEdge OT OT JEY 08/29 USD 123.37 –2.4 2.4 5.2 n Vegas—would navigate a cash-flow HSBC ALTERNATIVE INVESTMENTS LIMITED For information about open funds, please contact us on Tel: +43 1 24700 speech-driven clinical documenta- son familiar with the matter. The T +44 20 7860 3074 F + 44 20 7860 3174 www.hail.hsbc.com www.superfund.com *Closed for New Investments shortage that would have put it out of tion for health care. Austria-based auto maker expects a plant near Chat- HSBC Absolute Companies Superfund Cayman* OT OT CYM 09/23 USD 51.37 7.9 35.1 15.3 Superfund GCT USD* GL EQ LUX 09/23 USD 2620.00 8.0 24.7 10.6 compliance with its loan terms and in HSBC Absolute Companies Philips Speech Recognition Systems tanooga, Tenn., to open in late 2010, Superfund Gold A (SPC) GL OT CYM 09/23 USD 916.15 4.2 35.4 23.8 the difficult position of renegotiating Sanofi seen cutting jobs in France offers speech-recognition applica- Hans Dieter Pötsch said at a confer- n CAPITAL MANAGEMENT ADVISORS Euro Absolute OT OT GGY 08/29 GBP 1.53 –5.7 –4.7 2.8 Superfund Gold B (SPC) GL OT CYM 09/23 USD 935.05 –0.1 35.1 26.5 Euro Absolute EUR OT OT GGY 08/29 EUR 2.15 –6.3 –5.4 1.1 Superfund Q-AG* OT OT AUT 09/23 EUR 6869.00 6.2 17.0 9.8 with lenders as Wall Street continues tions in 25 languages, which Nuance ence hosted by Credit Suisse First Phone Number: +1 441 295 59 29 Global Absolute OT OT GGY 08/29 GBP 1.08 –3.5 0.1 6.1 to be consumed by turmoil. By David Gauthier-Villars Thursday in various French cities, n INTEGRATED ALTERNATIVE INVESTMENTS, TEL: +44 (0)20 75149200n WEAVERING CAPITAL called “the most comprehensive lan- Boston. The plant will make a midsize CMA Dynamic OT OT BHS 08/29 USD 1565.70 –4.0 –3.3 3.5 Global Absolute USD OT OT GGY 08/29 USD 2.00 –4.7 1.4 5.9 And Jeanne Whalen Email: [email protected] - Website: www.integratedai.com www.weaveringcapital.com [email protected] T:+44(0)2073554720 Analysts said protecting lending he said. A Sanofi spokesman de- guage portfolio in health care” for car that VW hopes will drive growth CMA MultHdge Arbtrge OT OT CYM 08/31 USD 1865.29 –3.4 –2.3 3.9 Weavering Macro F.I. Fd GL OT CYM 08/29 USD 175.50 6.4 13.9 14.0 n HSBC ALTERNATIVE STRATEGY FUND Altipro OT OT FRA 09/25 EUR 249.86 –1.7 –0.7 2.6 covenants is crucial to the company’s clined to comment. Like other big medical documentation. Nuance ex- in the U.S. market. Mr. Pötsch’s pre- CMA MultHdge Balncd OT OT CYM 08/29 USD 1347.49 –3.8 –2.2 2.9 Special Opp EUR OT OT CYM 08/29 EUR 107.04 –4.4 0.7 NS Integrated Dir Trading EUR OT OT CYM 08/29 EUR 106.88 4.3 15.6 9.4 n WINTON CAPITAL MANAGEMENT LTD future. A group of French unions said drug companies, Paris-based Sanofi pects the deal to add two cents to sentation included a slide showing CMA MultHdge Growth OT OT CYM 08/29 USD 1977.14 0.1 1.1 5.1 Special Opp Inst EUR OT OT CYM 08/29 EUR 100.53 –3.9 1.6 NS Integrated Emg Markets EUROT OT CYM 08/29 EUR 90.07 –14.3 –10.5 –0.5 Tel: +44 (0)20 7610 5350 Fax: +44 (0)20 7610 5301 they expect French drug maker has been cutting jobs for several CMA MultiHdge Lvrgd OT OT CYM 07/31 USD 1351.35 –5.4 –9.6 4.4 “The last thing you want to do three cents a share in earnings and the plant will make 125,000 that will Special Opp Inst USD OT OT CYM 08/29 USD 109.69 –4.0 1.9 NS Integrated European EUR OT OT CYM 08/29 EUR 154.52 4.0 4.0 4.8 Winton Evolution EUR GL OT VGB 08/29 EUR 1306.78 4.5 15.4 10.8 Sanofi-Aventis SA to announce years amid tough times in the drug $37 million to $40 million in reve- be sold in the U.S., and another Special Opp USD OT OT CYM 08/29 USD 108.44 –4.4 1.2 NS Integrated Event Driven EUROT OT CYM 08/29 EUR 100.66 –6.1 –2.9 5.4 Winton Evolution GBP GL OT VGB 08/29 GBP 1279.66 4.9 16.5 12.0 Thursday that it will cut roughly industry. Integrated Lg/Sh Sel F EUR OT OT CYM 08/29 EUR 94.11 –5.9 –3.1 5.0 Winton Evolution JPY GL OT VGB 08/29 JPY 116157.65 1.1 11.2 6.9 nue for the fiscal year. Nuance in- 125,000 that will be exported to other Winton Evolution USD GL OT CYM 08/29 USD 1272.60 3.8 15.1 11.4 n HSBC Portfolio Selection Fund Integrated MultSt B EUR OT OT VGB 08/29 EUR 134.12 –3.9 0.5 3.7 800 sales jobs in France, the unions In February, Sanofi said it had creased its earnings and revenue countries, a person who attended the Winton Futures EUR GL OT VGB 08/29 EUR 185.52 9.3 22.4 15.7 GH Fund AP OT OT CYM 08/29 EUR 137.62 –2.8 3.9 8.9 Integrated Relative Value EUROT OT CYM 08/29 EUR 99.24 –1.2 0.1 3.7 said in a statement Wednesday. cut the size of its global sales force meeting said. VW has until now only Winton Futures GBP GL OT VGB 08/29 GBP 198.82 10.3 24.4 17.3 Executive Travel Program forecast for its fiscal fourth quarter. GH Fund CHF Hdg OT OT JEY 08/29 CHF 117.21 –4.4 0.3 4.5 Winton Futures JPY Lead SeriesGL 2 OT VGB 08/29 JPY 13482.81 7.1 19.1 12.8 n Such a cut would represent by 5% over the previous two years, The company now expects earnings said the plant will make cars for the GH Fund EUR Hdg OT OT JEY 08/29 EUR 127.69 –3.3 2.3 6.5 KREDIETBANK LUXEMBOURG Winton Futures USD GL OT VGB 08/29 USD 662.35 9.3 23.1 16.8 Guests and clients of 320 leading GH Fund EUR Hdg (Non-V II)OT OT JEY 08/29 EUR 113.35 –3.2 2.3 6.5 www.kbl.lu Fax : +352 47 97 73 911 hotels and car rental agencies about a third of Sanofi’s sales force to 35,629 representatives. The com- of 25 cents to 26 cents a share, xclud- American market and played down n CARLO SCEVOLA & PARTNERS n ZULAUF EUROPE FUNDS KBL SPOP Investing OT OT LUX 08/31 EUR 2078.83 –5.7 –2.3 5.6 receive The Wall Street Journal in France, Philippe Guerin-Petre- pany said it cut 2,900 sales jobs in ing items, for the quarter ended the possibility of exporting vehicles. GH Fund EUR Hdg (Non-V) OT OT JEY 08/29 EUR 127.69 –3.3 2.3 6.5 Phone: +353 1436 7200 Fax: +353 1672 5361 www.zulaufeurope.ky Tel +44 (0) 20 7419 5671 KBL SPOP Investing OT OT LUX 08/31 USD 2005.77 –6.0 –2.2 6.6 Europe daily, courtesy of GH Fund GBP Hdg OT OT JEY 08/29 GBP 139.76 –2.4 4.0 8.3 Zulauf Europe Fd EUR OT OT CYM 09/19 EUR 150.28 6.1 13.6 6.7 ment, a delegate with the Force Ou- the U.S. and Europe during that pe- Tuesday, up a penny from its August www.rescgf.com GH Fund Inst EUR OT OT JEY 08/29 EUR 97.98 NS NS NS KBL SPOP Long/Short Eq OT OT LUX 08/31 USD 543.52 –17.9 –10.0 NS Zulauf Europe Fd LP OT OT CYM 03/31 USD 173.04 1.2 12.5 6.3 addictlab.comTM vriere union, said in an interview. riod, with the U.S. sales force alone projection. It forecast revenue of Resolute Capital Gth Fd OT OT VGB 08/29 USD 1225.83 9.1 15.8 10.7 GH Fund Inst JPY OT OT JEY 08/29 JPY 9643.52 –5.0 –0.2 NS KBL SPOP Long/Short Eq OT OT LUX 08/31 EUR 536.69 –17.5 –10.0 NS Zulauf Europe Fd USD OT OT CYM 09/19 USD 315.49 5.2 13.3 8.1 global creative think tank Some of the drug-sales representa- declining by about 18% to 7,800 peo- $258 million to $262 million, rais- —Compiled from staff tives plan to stage demonstrations ple. ing the low end from $255 million. and wire service reports. 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 THURSDAY, OCTOBER 2, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. THURSDAY, OCTOBER 2, 2008 9 THE INTERNATIONAL INVESTOR ECONOMY & POLITICS

Securities-loan squeeze EUROPEAN UNION JAPAN WORLD TRADE ORGANIZATION Where now for Wachovia? 7 7 7 Questions remain weighs on pension funds Russia allows observers Manufacturer confidence Dispute panel backs EU By Craig Karmin ably for years. But the decline in Leh- about units not taken man and Washington Mutual has set around South Ossetia hit 5-year low last month on U.S. antidumping plan in sale to Citigroup Public pension funds and other off an unsettling chain of events: UROPEAN Union ONFIDENCE among Ja- HE WORLD big investors have long squeezed first causing the value of their own monitors began pan’s large manufactur- Trade Organiza- out a few extra dollars by lending securities to plummet, then contrib- By Dan Fitzpatrick E patrolling Geor- C ers fell sharply to a five- T tion dealt a new stock held in their portfolios—for a uting to a freeze in the credit mar- And Diya Gullapalli gian territory Wednes- year low in September, hit by setback to a U.S. fee—to short sellers. Now those kets that hurt most short-term debt day and Russian the double whammy of method for dealing funds are starting to feel a squeeze securities. troops allowed some higher costs and shrinking with unfairly priced Danny Ludeman, chief executive of their own. After that happened, investors of them into a buffer consumer demand at home imports, ruling that Wachovia of Corp.’s securities unit, The collapse of Lehman Broth- were forced to make up the differ- zone around the break- and abroad amid a global eco- the U.S. antidumping dialed up his network of 14,600 bro- ers Holdings Inc. and Washington ence when they returned the collat-

Associated Press Associated away region of South nomic slowdown.

Fotosearch measure broke interna- kers Monday and put a positive spin Mutual Inc. have set off new trou- eral to the borrower of the securities. Ossetia despite earlier According to the Bank of tional trade rules. on the breakup of their Charlotte, bles in the securities-lending busi- “Our earnings in this program warnings from Moscow they would be blocked. But Japan’s quarterly survey of In the latest ruling over the method favored by the N.C., parent. ness, and the recent freeze in short- will be affected,” said Christopher

EU monitors were quickly allowed to pass through Inmagine corporate sentiment released U.S., which has been the target of a dozen trade dis- He said Wachovia Securities term debt markets has only com- Ailman, chief investment officer for Russian checkpoints near two Georgian villages on Wednesday, a key confidence putes, a WTO dispute panel backed a European Union LLC, of St. Louis, should be able to pounded the problem. the California State Teachers’ Re- the perimeter of Moscow’s so-called security zone. index for large manufacturers declined to minus-3 complaint that the Commerce Department had acted maintain its size and its regional- That has left a number of big in- tirement System, the nation’s sec- Russia and Georgia agreed to the EU observer in September from plus-5 in June, turning negative illegally. brokerage culture without being Press Associated California State ond-largest pension fund that lends vestors—from the mission as part of an updated cease-fire plan follow- for the first time since June 2003. The companies While the U.S. can appeal the panel’s findings, part of a larger bank. “This out- Many questions remain about what will happen to the rest of Wachovia, based in Teachers’ Retirement Sys- securities valued around ing the war, which ended with Russian and separat- expect the index to decline further, to minus-4, in the WTO’s top court has rejected the method, come,” Mr. Ludeman added, “poten- Charlotte, N.C., following the sale of many of its operations to Citigroup. tem $29 billion. to giant mutual funds— ist forces in control of the breakaway regions. the next three months. known as zeroing, three times. The EU welcomed tially gives us the best of both Mr. Ailman said the with at least temporary —Associated Press —Yuka Hayashi the ruling. —Reuters worlds.” losses. They could become fund “will not get face Following the agreement Mon- untilmore details emerge, itishardto trous aftereffects that it just blows permanent if conditions value” for collateral in- day to sell the bulk of its operations know what the earnings power of the my mind.” don’t improve. vested in medium-term to Citigroup Inc., Wachovia is left new Wachovia could be, Stifel, Nico- In a statement Tuesday, Wacho- The business of securi- notes issued by Lehman with the U.S.’s third-largest retail laus&Co.analystChristopherMutas- via said it remained “well capital- ties lending can seem yet an- Brothers and Washington brokerage, its Evergreen Invest- ciowrote in a note to clients. ized”andwas“inastrongpositionto other obscure corner of Mutual. The amount of ments asset-management unit, and “Too many questions remain un- provide credit support and overall Wall Street. But it is big losses is unclear because insurance and retirement services, answered,” Mr. Mutascio said. capital backing” to its remaining business for funds with the pension fund expects a model similar to one developed by Among them: Will the new Wacho- businesses. huge portfolios of stocks. to hold the paper for a long Charles Schwab Corp. But major via have the capacity to meet obliga- Further complicating matters is The profits earned from se- Christopher time and wait for a price re- Cameron makes his case to lead the U.K. questions persist about the viability tions on long-term debt not as- that Prudential Securities has a mi- curities lending are one rea- Ailman bound. of what remains, or whether the sumed by Citigroup? Will it be able nority stake in Wachovia Securities, son why index fund compa- The fund isn’t alone. and family-friendly issues. On ing the Labour Party conference last pieces could still be sold. “I think to pay dividends on preferred stock giving Prudential right of first re- nies like Vanguard can charge cli- Northern Trust Corp. on Monday Tory leader seeks Wednesday, he moved closer to Mr. week and his well-received speech they may discover the best course that Citigroup also isn’t assuming? fusal on any sale of Wachovia Securi- ents such small fees. They can also said it is taking a pretax charge of Brown’s comfort zone, the economy there. In his speech, Mr. Brown hit a of action is liquidation of those as- The impact of Monday’s deal on ties. Prudential also can demand boost overall pension-fund returns. $150 million in the third quarter to to counter criticism and financial sector. nerve when, in an allusion to Mr. sets,” said Gerard Cassidy, banking Wachovia’s remaining units “was that its 24% interest be bought out Under a typical agreement, a pen- pay back investors who lost money “Today the financial crisis means Cameron, he said it was not the time analyst with RBC Capital Markets in not thought through,” said Nancy at any time. sion fund lends securities and re- on collateral from securities lend- he lacks experience that all eyes are on the economy and for a “novice.” Portland, Maine. Bush, analyst with NAB Research —David Enrich and ceives cash as collateral, plus 2%. ing that was invested by the Chicago- the financial markets and that is ab- Mr. Cameron countered Wednes- WhatwillbeleftofWachoviacould LLC in Annandale, N.J. “This was Annie Gasparro That cash is then handed over to a based investment firm. By Alistair MacDonald solutely right,” Mr. Cameron said in day, saying, “experience is what they have at least 30,000 employees. But done so quickly and with such disas- contributed to this article. broker, who invests the money so Bank of New York Mellon Corp. Birmingham, ENGLAND a speech that lasted just over an always say when they try to stop that the pension fund can get an ad- took similar action last week, say- hour. change.” ditional return on that collateral of ing it will “provide support” to cli- AVID CAMERON, who is vying The U.K. is suffering in the credit In his nearly three years as leader as much as 1% per transaction. ents impacted by the Lehman bank- to become Britain’s next crisis, testing the already-unpopular of the Conservatives, Mr. Cameron, a The pressure on securities-lend- ruptcy filing, including those in a D prime minister, sought to Mr. Brown’s leadership. Mr. Brown former public-relations executive, Greenberg seeks to bid on AIG sale of assets ing programs comes at a time when fund used for “reinvestment of cash counter criticisms that he lacks the must call an election by 2010 and Mr. has sought to banish the image of pension funds and mutual funds collateral within the company’s se- experience and policies to deal with Cameron is positioned to run against what one Conservative politician By Liam Pleven AIG is preparing to sell Mr. Greenberg, who left around the world are voluntarily re- curities lending business.” the country’s financial crisis. him. The country, which relied called the “nasty party.” He has assets in order to pay off AIG amid an accounting stricting their lending of shares of fi- In a few cases, investors lent se- The Conservative Party leader is heavily on the financial-services sec- toned down Tory rhetoric on tax cuts Maurice R. “Hank” Greenberg, the loan. Mr. Liddy is sched- scandal in 2005, added, “I nancial companies to hedge funds, curities to Lehman Brothers that ahead of U.K. Prime Minister Gordon tor in its past 15 years of an eco- and smaller government and the dan- the former chief executive officer of uled to provide investors want to formally request an which use borrowed shares for they are unlikely to recover. But in Brown in opinion polls and has nomic boom, has nationalized two gers of European integration. American International Group Inc., an update on the compa- opportunity to submit an of- short selling. In a short sale, a most instances, the losses are re- gained popularity by moving the banks and helped rescue a third. Even though he dedicated less has asked the company’s CEO for ny’s plans Friday. fer on any assets that the trader borrows a security and hopes lated to how the cash collateral was Conservative Party left—to the cen- The Conservatives rescripted time to social issues to discuss the fi- the chance to bid on any assets the In his letter, dated Mon- company intends to sell.” it will fall in price before the trader invested, says Cynthia Steer, chief ter Tony Blair once claimed for the their annual conference agenda, and Press Associated nancial crisis, in his speech Mr. Cam- insurer plans to sell. day, Mr. Greenberg wrote, Mr. Greenberg is fight- has to buy it back and return it. research strategist at the consult- Labour Party. In a speech at the an- Mr. Cameron’s speech was rewritten David Cameron, at the annual Conservative Party conference, promised to fix Britain’s eron promised to fix Britain’s “bro- Mr. Greenberg made the request “I now understand that the ing civil charges related to The California Public Employ- ing firm RogersCasey. nual party conference, Mr. Cameron to take account of the economic cri- “broken society in the way that Margaret Thatcher fixed its broken economy.” ken society in the way that Margaret in a letter to Edward Liddy, who company has begun to liq- his time at AIG. He has de- ees’ Retirement System, for in- She says that the collateral in- tried to paint himself as having the sis. An opening-day celebration of Thatcher fixed its broken economy.” took over the New York firm two uidate itself by selling as- nied wrongdoing. stance, earned $118 million in net in- vestments used to be limited to su- character to lead Britain through dif- the party’s recent local election vic- In language reminiscent of Mr. Blair, weeks ago when the U.S. govern- sets in privately negoti- An AIG spokesman said come for a $38 billion securities- persafe U.S. Treasury bills. But ficult times. tories was canceled and replaced While the Conservatives lead the said they had more confidence in Mr. he talked of mending the environ- ment agreed to let AIG borrow up to ated transactions without Maurice ‘Hank’ the letter had been re- lending program for the year ended about five years ago, the invest- The speech, reflecting how the with a session on the credit crunch. Labour government in polling, Mr. Brown and his Treasury chief ment and of understanding what $85 billion in order to help it avoid a transparency and without Greenberg ceived. “We are open to all in June. Over the past eight years, ments were expanded to include credit crunch is shaping politics The party has pushed out a series of Brown’s government recently has Alistair Darling to handle the econ- drives people to crime. possible bankruptcy filing. In ex- providing the opportunity reasonable expressions of the program had cumulative net more exotic short-term paper that around the world, presents a new economic- and finance-related poli- clawed its way back from the record omy than Mr. Cameron and his lead Many party members had queued change, the government will control for the participation of alternative interest in the assets we plan to earnings of nearly $1.2 billion. offered better returns than Trea- twist in U.K. politics and the pitched cies and speeches throughout the lows that would have seen it lose in a finance politician George Osborne. for up to four hours to see the 80% of the company. purchasers.” sell,” said the spokesman. This practice has worked reli- surys but also carried more risk. Brown-Cameron rivalry. Mr. Cam- four-day event in Birmingham. landslide if an election were called. A The banking crisis has played to speech. “Exactly what the country eron has been winning voters away It is a “sober” conference, said poll in the Sunday Telegraph newspa- Mr. Brown’s strengths; Mr. Brown en- needs in these current economic cir- from Mr. Brown with speeches heavy Liam Fox, the Conservative member per put the Conservatives at 43% of joyed a 10-year reign as head of the cumstances,” said Robert Winfield, Advertisement [ INTERNATIONAL INVESTMENT FUNDS www.WSJ.com ] Advertisement on charm and personal touches that of Parliament in charge of defense the vote, down three points, with La- Treasury under Mr. Blair. Mr. Brown an unemployed financial administra- have stressed pro-environmental policy. bour up seven points at 31%. Voters also is experiencing a bump follow- tor from Leeds, England. 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 Baltic Fund EE EQ SWE 10/01 SEK 54.07 –26.6 –32.4 –6.3 Sel Emerg Mkt Equity GL EQ GGY 09/30 USD 178.20 –34.1 –32.5 –0.1 Siberian Investment Co EE EQ IRL 09/08 USD 42.10 –52.2 –45.9 NS Eastern European Fund EU EQ SWE 10/01 SEK 34.27 –37.4 –34.2 –5.2 Sel Euro Equity EUR US EQ GGY 09/30 EUR 99.21 –32.1 –35.5 –14.6 Andorfons Alternative PremiumOT OT AND 07/31 EUR 112.49 –3.1 –2.6 2.3 Russian Fund EE EQ SWE 10/01 SEK 1011.80 –42.1 –36.7 –8.1 Sel European Equity EU EQ GGY 09/30 USD 185.04 –34.8 –36.3 –10.1 Andorfons Mix 30 EU BA AND 09/30 EUR 9.48 –18.2 –19.4 –8.5 Turkish Fund EE EQ SWE 09/30 SEK 6.84 –40.4 –37.9 –3.2 Sel Glob Equity GL EQ GGY 09/30 USD 191.79 –29.8 –34.0 –10.7 Rebounding joblessness Andorfons Mix 60 EU BA AND 09/30 EUR 10.04 –23.8 –24.2 –9.8 Sel Glob Fxd Inc GL BD GGY 09/29 USD 137.48 –6.3 –4.8 –0.5 European slowdown hits the region’s labor markets Euro-zone unemployment rate n CHARTERED ASSET MANAGEMENT PTE LTD - TEL NO: 65-6835-8866 Sel Pacific Equity AS EQ GGY 09/30 USD 119.01 –32.5 –33.1 –0.2 Sel US Equity US EQ GGY 09/29 USD 125.44 –26.5 –29.0 –9.7 Fax No: 65-6835 8865, Website: www.cam.com.sg, Email: [email protected] By Emma Charlton 9.5% CAM-GTF Limited AS EQ MUS 09/19 USD 193562.13 –25.8 –25.7 –2.1 Sel US Sm Cap Eq US EQ GGY 09/30 USD 184.35 –20.3 –26.5 –8.9 credit conditions and weaker confi- up. Indeed, the unemployment rate nies are more inclined to cut costs.” n MP ASSET MANAGEMENT INC. And Joe Parkinson dence led businesses to cut costs. for the EU as a whole was 6.9% in Au- n n KREDIETBANK LUXEMBOURG In the U.K., a survey of more than DJE INVESTMENT S.A. Tel: + 386 1 587 47 77 9.0 internet: www.dje.lu email: [email protected] phone:+00 352 269 2522 0 fax:+00 352 269 25252 www.kbl.lu Fax : +352 47 97 73 911 MP-BALKAN.SI OT OT SVN 09/30 EUR 38.47 –47.4 –56.1 –16.4 The euro zone’s jobless rate hit 7.5% gust, down from 7.1% a year earlier. 600 purchasing managers in the man- DJE Real Estate P EU BA LUX 10/01 EUR 10.27 0.9 0.9 2.6 n HERITAGE FUND MANAGEMENT DSF 25/75 EU BA LUX 09/30 EUR 322.82 –10.5 –10.9 –4.7 MP-TURKEY.SI OT OT SVN 09/30 EUR 31.42 –38.4 –41.0 –8.1 LONDON—The slowdown in Eu- in August, from 7.4% in July, accord- But available evidence suggests ufacturing sector showed job cuts DJE-Absolut P GL EQ LUX 10/01 EUR 196.08 –22.3 –19.5 –3.5 [email protected] www.heritagefunds.ch DSF 50/50 EU BA LUX 09/30 EUR 248.42 –16.3 –17.6 –7.4 8.5 DSF 75/25 EU BA LUX 09/30 EUR 196.38 –21.8 –23.8 –10.6 n PAREX ASSET MANAGEMENT IPAS rope’s economy is hitting labor mar- ing to European Union statistics DJE-Alpha Glbl P EU BA LUX 10/01 EUR 167.26 –18.2 –15.5 –1.9 HF-China Abs Ret OT OT CHE 09/25 CHF 81.69 –45.9 –41.9 NS the pace of job reductions sped up were at their highest since records KBC Eq (L) Europe EU EQ LUX 09/30 EUR 526.73 –30.7 –33.7 –14.7 Basteja Blvd. 14, Riga, LV-1050, Latvia DJE-Div& Substanz P GL EQ LUX 10/01 EUR 192.15 –19.4 –20.0 –1.9 HF-World Bds Abs Ret OT OT CHE 09/25 USD 85.66 –6.2 1.6 –0.5 kets in the U.K. and the 15 countries agency Eurostat. last month, with companies in the began in 1992. That reflected wide- DJE-Gold&Resourc P OT EQ LUX 10/01 EUR 144.04 –23.1 –22.4 –3.4 KBC Eq (L) Japan JP EQ LUX 09/30 JPY 20974.00 –29.0 –36.6 –20.1 www.parexgroup.com Tel: +371 67010810 8.0 DJE-Renten Glbl P EU BD LUX 10/01 EUR 118.87 –2.6 –2.5 –0.1 KBC Eq (L) NthAmer EUR US EQ LUX 09/29 EUR 581.92 –24.5 –26.6 –8.9 Parex Caspian Sea Eq EU EQ LVA 09/30 EUR 5.13 –42.9 –45.0 NS that use the euro as employers scale Many euro-zone members have U.K. and the euro zone announcing spread layoffs, the nonreplacement Aug.: 7.5% LuxPro-Dragon I AS EQ LUX 10/01 EUR 106.14 –41.3 –42.3 NS KBC Eq (L) NthAmer USD US EQ LUX 09/29 USD 823.81 –24.4 –26.1 –7.3 Parex Eastern Europ Bd EU BD LVA 09/30 USD 12.63 –7.6 –6.9 –0.1 back output and reduce payrolls. strong legal protections for work- more than 50,000 job cuts during of those departing and the postpone- LuxPro-Dragon P AS EQ LUX 10/01 EUR 103.96 –42.5 –43.5 NS KBL Key America EUR US EQ LUX 09/26 EUR 452.00 –22.7 –23.2 NS Parex Russian Eq EE EQ LVA 09/30 USD 17.02 –46.4 –38.0 –5.1 7.5 LuxTopic-Aktien Europa EU EQ LUX 10/01 EUR 15.67 –18.7 –16.0 –1.4 KBL Key America USD US EQ LUX 09/26 USD 463.36 –23.2 –23.3 NS Parex Ukrainian Eq EU EQ LVA 09/30 EUR 4.43 –56.8 NS NS The weak data have fueled market ers, making it time-consuming and the month and many flagging more ment of planned expansions, re- LuxTopic-Pacific AS EQ LUX 10/01 EUR 13.96 –35.0 –36.8 –5.2 KBL Key East Europe EU EQ LUX 09/26 EUR 2116.70 –37.6 –33.8 –6.2 KBL Key Eur Sm Cie EU EQ LUX 09/26 EUR 944.17 –31.1 –35.7 –13.0 speculation about rate cuts by Eu- expensive for businesses to cut jobs. in the months ahead. search firm Markit Economics said. 7.0 n EAST CAPITAL KBL Key Europe EU EQ LUX 09/26 EUR 635.21 –28.1 –30.4 –11.7 n rope’s central banks, though these are It usually takes many months for a “Since the end of 2007, there’s The same survey for the euro HERMES FINANCIAL MANAGEMENT (EGYPT) LIMITED, [email protected] Key Far East AS EQ LUX 09/29 USD 1133.81 –40.6 –42.3 –6.5 Tel: 9714 363 4041 *Middle East & Developing Africa Fund KBL Key Major Em Mkts GL EQ LUX 09/26 USD 548.20 –41.0 –34.6 4.1 considered more likely for the Bank of downturn in the economy to lead to been a gap between slowing gross zone showed that payrolls were cut 6.5 EFG-Hermes Egypt GL EQ BMU 08/31 USD 51.70 –19.6 1.5 21.8 KBL Key NaturalRes EUR OT EQ LUX 09/26 EUR 471.46 –24.2 –22.1 NS England, whose rate setters meet a sharp rise in the unemployment domestic product and the labor mar- for the fourth straight month and 2005 '06 '07 '08 EFG-Hermes MEDA* GL EQ BMU 08/31 USD 33.67 –7.0 17.9 22.4 KBL Key NaturalRes USD OT EQ LUX 09/26 USD 523.47 –24.2 –19.5 NS n WEBSITE: www.eastcapital.com next week, than for the European Cen- rate. ket—employment didn’t react very that job losses were at their highest EFG-Hermes Saudi Arabia EquityEA EQ SAU 09/21 SAR 7.77 NS NS NS n PICTET & CIE, ROUTE DESACACIAS 60, CH-1211 GENEVA 73 Ph: +46 (0) 8 505 88 505, Fax: +46 (0)8 505 88 508 EFG-Hermes Telecom OT EQ BMU 08/31 USD 31.61 –17.5 –8.7 12.0 n LLOYD GEORGE MANAGEMENT (HK) LTD Source: Eurostat Tel: + 41 (58) 323 3000 Web: www.pictetfunds.com tral Bank, whose policy meeting So while the job market in the quickly to the economic downturn,” for five years. (Lux) E Eur ConvgnceEUR EE EQ LUX 09/26 EUR 68.29 –37.8 –39.7 NS Suite 3808, One Exchange Square, HK: Tel. 852 2845 4433 Fax. 852 2845 3911 PF (LUX)-Asian Eq-Ica AS EQ LUX 09/30 USD 138.60 –41.3 –43.4 –3.8 (Lux) E Eur ConvgnceUSD EE EQ LUX 09/26 USD 76.70 –37.9 –37.5 NS n HSBC ALTERNATIVE INVESTMENTS LIMITED LG Antenna GL EQ BMU 09/26 USD 47.30 –36.8 –30.9 –2.1 Thursday is expected to leave the refi- U.S. turned quickly as the economy said Gilles Moec, an economist at The U.K.’s unemployment rate in- PF (LUX)-Asian Eq-Pca AS EQ LUX 09/30 USD 133.32 –41.8 –43.9 –4.6 (Lux) Russian EUR EE EQ LUX 10/01 EUR 62.24 –45.3 –41.5 NS T +44 20 7860 3074 F + 44 20 7860 3174 www.hail.hsbc.com LG Asian Plus AS EQ CYM 09/26 USD 51.43 –39.8 –34.4 0.6 PF (LUX)-Biotech-Pca OT EQ LUX 09/29 USD 333.67 0.3 –1.9 14.2 nancing rate unchanged. weakened—with the U.S. unemploy- Bank of America. “Employers were creased to 5.5% in the three months the latest data from the U.K. Office (Lux) Russian USD EE EQ LUX 10/01 USD 66.96 –47.7 –42.3 NS HSBC Portfolio Selection Fund LG Asian SmallerCo's AS EQ BMU 09/29 USD 66.42 –58.2 –59.8 –23.8 Balkan Fund EE EQ SWE 09/30 SEK 19.13 –42.6 –42.8 –4.9 Sel Emerg Mkt Debt GL BD GGY 09/30 USD 283.02 –9.2 –7.2 0.1 LG India EA EQ MUS 09/25 USD 48.20 –48.4 –33.6 –1.0 Please turn to next page The euro zone’s unemployment ment rate rising to 6.1% in August hesitant, waiting to see if the oil to July, from 5.3% in the three for National Statistics shows. rate rose to its highest level in more from 4.7% a year earlier—Europe’s shock would pass. Now we are more months to June, as the number of un- —Paul Hannon and Steve McGrath 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] than a year in August as tightening jobless rate has been slower to pick settled in the downturn, and compa- employed workers rose by 81,000, contributed to this article. 10 THURSDAY, OCTOBER 2, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. THURSDAY, OCTOBER 2, 2008 23 ECONOMY & POLITICS THE INTERNATIONAL INVESTOR U.S. to begin spy program FUND SCORECARD Spanish housing prices fall Tangto leave J.P.Morgan HF Corporate Actions “This is an idiosyncrasy of the despite concerns on privacy Fund attempts to profit from price changes related to corporate actions. Mergers/Acquisi- First drop in decade First fall in a decade Spanish market,” said José García Bloomberg News reported his resig- miliar with the matter, the new com- tion, bankruptcy, shifts in corporate strategy, divestiture. Ranked on % total return (dividends Montalvo, an economics professor By Siobhan Gorman turning the spy lens on America Ex-executive at Bear nation earlier Wednesday. pany will comprise not only a pri- reinvested) in U.S. dollars for one year ending October 01, 2008 After several quarters of slowing strains economy at Universitat Pompeu Fabra. He could violate Americans’ privacy Mr. Tang, a managing director at vate-equity arm but also an advi- growth, Spanish house prices declined Leading 10 Performers notes that until this year, Spain’s WASHINGTON—The U.S. Depart- and civil liberties unless adequate intends to start up J.P. Morgan based in Los Angeles, sory division and an investment- for the first time in 10 years in the FUND FUND LEGAL % Return in $US ** on brink of recession housing-sector adjustment has ment of Homeland Security will pro- safeguards were required. was Bear Stearns’s lead negotiator product-distribution unit. It will be RATING NAME FUND MGM'T CO. CURR. BASE YTD 1-YR 2-YR 5-YR second quarter. House prices in Spain, ceed with the first phase of a contro- A new 60-page Government Ac- private-equity fund for a planned $1 billion cross-invest- like a “merchant bank with a distri- change from a year earlier: been more visible in sharp falls in 5 Libra Fund Libra Advisors LLC USDiUnited States 8.20 36.54 21.71 33.71 By Jonathan House sales transactions and housing versial satellite-surveillance pro- countability Office report said the ment with China’s Citic Securities bution platform,” this person said. LP 16% Donald Tang, a former vice chair- Co. That deal, agreed to in October Another person familiar with starts. gram, even though an independent department “lacks assurance that 4 Alki Alki Capital USDiUnited States 2.56 34.54 25.27 17.09 MADRID—Spanish housing The decline in housing invest- review found the department hasn’t NAO operations will comply with ap- man of Bear Stearns Cos. who 2007, was the first struck for a Chi- the matter said that shareholders Partners LP Management LLC prices fell for the first time in a de- 12 yet ensured the program will com- plicable laws and privacy and civil moved to J.P. Morgan Chase &Co. nese entity to put capital into a Wall will be multinational companies, ment has brought the Spanish econ- NS Finvest Finvest Asset USDiUnited States 12.87 33.36 NS NS cade in the second quarter, adding ply with privacy laws. liberties standards,” according to a after it took over Bear, is leaving Street firm. But it collapsed in but he declined to give specific 8 omy, once one of the euro zone’s Yankee, LP Management LLC new stress to an economy already main engines of economic and em- Congress provided partial fund- person familiar with the document. March when Bear Stearns suffered names. He said the partners haven’t from a liquidity crisis and was taken agreed on what sectors to target 4 Alki Fund Alki Capital USDiUnited States 2.96 33.22 23.15 14.89 on the brink of recession. 4 ployment growth, to the verge of re- ing for the program in a little-de- The report, which is unclassified By Jason Leow in Beijing over by J.P.Morgan. Chinese regula- and that a launch date hasn’t been Ltd Management LLC Data released Wednesday by cession. The government now ex- bated $634 billion spending mea- but considered sensitive, hasn’t and Rick Carew in Hong Kong been publicly released, but was de- tors had delayed approval of the set. 5 Libra Fund Libra Advisors LLC USDiCayman Isl 8.87 32.56 17.57 30.00 Spain’s National Statistics Insti- 0 pects the economy to stagnate, and sure that will fund the government scribed and quoted by several peo- and is planning to start up a private- deal, saving Citic Securities more During the past year, a number Ltd tute, or INE, showed second-quar- possibly contract, in the second until early March. For the past year, –4 the Bush administration had been ple who have read it. equity fund. than $900 million in the process. of Chinese dealmakers have left in- ter house prices fell at an annual half of this year. 4 Rubicon M&A Rubicon Asset AUDiAustralia 5.73 24.10 23.39 NS and a quarterly rate of 0.3%. The 2007 ’08 fighting Democratic lawmakers The report cites gaps in privacy A spokesman for J.P. Morgan in Mr. Tang has told people in re- vestment banks to start private-eq- Fund - WholesaleManagement AUD Limited Spain could now start to see data are based on a new methodol- Source: Spain’s National Statistics Institute over the spy program, known as the safeguards. The department, it found, Hong Kong confirmed the depar- cent months that he was consider- uity funds. But despite their success 4 Rubicon M&A Rubicon Asset AUDiAustralia 5.72 23.39 22.74 NS greater financial stress if housing ture of Mr. Tang to pursue interests ing starting up his own private-eq- raising money, deals so far have ogy designed by Eurostat, the Euro- National Applications Office. lackscontrolstoprevent improperuse Fund - Retail ClassManagement A AUD Limited pean Union’s statistics arm, which prices start to fall below mortgage The program is designed to pro- of domestic-intelligence data by other outside investment banking. uity fund. According to a person fa- been slow to come. 4 Rubicon M&A Rubicon Asset AUDiAustralia 7.76 23.33 22.77 NS is seeking to promote uniform hous- gage crisis. values, Juan Ramón Quintás, chair- vide federal, state and local officials agencies and provided insufficient as- Fund (Class O) AUDManagement Limited ing data throughout the EU. Unlike prices in other countries man of Spanish savings-bank associ- with extensive access to spy-satellite surance that requests for classified in- Spain’s housing boom started to that have experienced boom-to- ation CECA, said Wednesday. imagery—but no eavesdropping—to formation will be fully reviewed to en- 5 RAB Cross RAB Capital plc EURiBritish VI 10.18 18.54 17.30 17.46 deflate in the first quarter of 2007, bust housing cycles, including the “A fall in prices causes a rise in assist with emergency response and sure it can be legally provided. Europe Fund Class E EUR when prices reached nearly three U.S. and the U.K., Spanish prices bad debt. …If someone can’t pay other domestic-security needs, such Homeland Security spokes- Nikkei rises, but tankan caps rally 4 RAB Cross RAB Capital plc EURiBritish VI 9.86 18.11 13.90 15.66 times their 1997 levels and after haven’t fallen until now because their mortgage, and his house is as identifying where ports or border woman Laura Keehner said depart- Europe Fund Class C EUR years of overbuilding. The correc- homeowners and builders have worth less, he might not have the op- areas are vulnerable to terrorism. ment officials concluded that the By Ayai Tomisawa, Average of 225 companies rose 1% negative result since June 2003. NOTE: Changes in currency rates will affect performance and rankings. Source: Morningstar, Ltd tion was hastened by tougher fi- tried to hold on to their properties tion he had before of selling the Since the department proposed program “complies with all existing David Rogers Wednesday to 11368.26, while In- “The bad tankan data will make KEY: ** 2YR and 5YR performance is annualized 1 Oliver’s Yard, 55-71 City Road And Soo-kyung Seo NA-not available due to incomplete data; London EC1Y 1HQ United Kingdom nancing conditions in the after- rather than sell them in a falling house” to cover his debt, Mr. the program a year ago, several Dem- laws” because the GAO report didn’t dia’s benchmark Sensex rose 1.5% life difficult for the stock market NS-fund not in existence for entire period www.morningstar.co.uk; Email: [email protected] math of the U.S. subprime-mort- market. Quintás said. ocratic lawmakers have said that say the program doesn’t. to 13055.67. Markets in Australia ahead of second-quarter earnings Phone: +44 (0)203 107 0038; Fax: +44 (0)203 107 0001 Most Asian markets posted mod- and New Zealand posted larger releases,” said Masaru Ohnishi, erate gains in a response to a big gains. strategist at J.P. Morgan. Reports rally in U.S. stocks, as bearish eco- But South Korea’s Kospi fell are due to start later this month. nomic report from Japan and holi- 0.6% to 1439.67 amid uncertainty Investors in Australia and New U.S. regulators ease rules days around the region muted up- surrounding the U.S. bailout and Zealand showed more enthusiasm side sentiment. concerns about local foreign-ex- toward the U.S. efforts. “I still think ASIAN-PACIFIC Investors were change and credit markets. Mar- most people expect Congress to on valuation of securities cheered by hopes kets in China, Hong Kong, Sin- pass this U.S. debt bailout soon,” By Kara Scannell STOCKS that the U.S. would gapore and Kuala Lumpur were said Chris Blair, head of retail at vices groups that have lobbied the take a second look closed for holidays. Pattersons Securities. “I think we SEC and FASB to change the rules. at a bailout plan for its ailing banks Those efforts were ramped up in re- Financial shares advanced in To- should get a decent bounce in the WASHINGTON—The Securities and a positive response to India’s ef- cent days as Congress was drafting kyo. Nomura Holdings, which is market when that goes through.” and Exchange Commission and the forts to stop a run at one of its own a rescue bill. buying the European and Asian op- Sydney’s benchmark S&P/ASX U.S. accounting-standard setter is- lenders. 200 index rose 4.2% to 4794.60. sued guidance that will allow compa- Because of the credit crunch, the erations of Wall Street giant Leh- New Zealand’s benchmark index fin- nies to use more flexibility when val- industry has said both the account- Japan’s benchmark Nikkei Stock man Brothers Holdings, jumped 6%. uing securities in a market that has ing treatment and how it is inter- Mitsubishi UFJ Financial Group ished up 3.2% at 3187.96. Mining shares were standouts dried up, a move the banking indus- preted by auditors was too conserva- added 3.4% and Sumitomo Mitsui Personal Technology in Sydney as Australia’s competi- try hopes will relieve pressure on tive and resulted in losses at finan- Financial Group gained 4%. tion regulator said it won’t oppose company balance sheets. cial institutions that were bigger Hot Fusion However, Japanese shipping BHP Billiton’s proposed takeover Tuesday, the SEC and Financial than they should have been. They stocks were under pressure after of rival Rio Tinto. BHP rose 5.7%, Accounting Standards Board issued said the rules forced companies to New program helps Walter the London-based Baltic Exchange while Rio Tinto was up 12%. Among a “clarification” to accounting rules write down assets tied to compa- S. Mossberg open better sea-freight index for global raw-ma- Australian lenders, Common- that require companies to value se- nies that had no chance of default- terials trade fell for a seventh Windows on Mac > Page 30 wealth Bank rose 5.3% and Na- curities at the price for which they ing largely because there were few straight day. Shares of Mitsui OSK tional Australia Bank climbed can be sold in the market, known as buyers or sellers. Lines ended down 4.1%. 5.9%. mark-to-market, or fair value, ac- The move Tuesday addressed Some investors had expected the In India, gainers included tech- counting. The FASB said it was pre- many of their concerns. The SEC Tokyo market to make a stronger re- nology companies and financial paring additional guidance for later and FASB stopped short of bowing covery. But the Bank of Japan struck firms, after the central bank this week. to pressure from some lawmakers a cautious note Wednesday morn- stepped in Tuesday to stop a run on The clarifications allow execu- and lobbyists who were seeking a ing in Tokyo, when its quarterly tan- ICICI Bank by promising to pump in tives to use their own financial mod- complete suspension of fair-value kan survey of corporate sentiment cash. ICICI shares rose 3.1% els and judgment if no market exists accounting, which had become part showed that conditions among Satyam Computer jumped 7.5%, or if assets are being sold only at of Congress’s contentious debate large manufacturers deteriorated to Infosys Technologies rose 4% and fire-sale prices. They were wel- over the Bush administration’s $700 minus three in September, the first Wipro closed 2.8% higher. comed by banking and financial-ser- billion financial-rescue package.

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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

Asian Technology B OT EQ LUX 09/30 USD 10.41 –27.3 –34.0 –13.4 Gl Bond B US BD LUX 09/30 USD 8.60 –4.6 –3.4 0.3 Japan Growth I JP EQ LUX 09/30 JPY 7225.00 –27.8 –35.2 –17.8 Asian Technology I OT EQ LUX 09/30 USD 12.98 –26.3 –32.8 –11.8 Gl Bond B2 US BD LUX 09/30 USD 12.52 –4.6 –3.5 0.4 Japan Strat Value A JP EQ LUX 09/30 JPY 7143.00 –29.3 –37.0 –16.9 Emg Mkts Debt A GL BD LUX 09/30 USD 13.55 –8.7 –7.2 1.3 Gl Bond I US BD LUX 09/30 USD 8.60 –3.5 –1.8 2.0 Japan Strat Value I JP EQ LUX 09/30 JPY 7258.00 –28.9 –36.5 –16.2 Data as shown is for information purposes only. No offer is being made by Emg Mkts Debt A2 GL BD LUX 09/30 USD 15.83 –8.7 –7.2 1.3 Gl Conservative A US BA LUX 09/30 USD 14.45 –13.8 –14.0 –3.3 Real Estate Sec. A OT EQ LUX 09/30 USD 15.64 –21.6 –28.4 –15.1 Emg Mkts Debt B GL BD LUX 09/30 USD 13.55 –9.3 –8.1 0.3 Gl Conservative A2 US BA LUX 09/30 USD 15.88 –13.8 –14.0 –3.3 Real Estate Sec. B OT EQ LUX 09/30 USD 14.48 –22.2 –29.1 –16.0 Morningstar, Ltd. or this publication. Funds shown aren’t registered with the U.S. Emg Mkts Debt B2 GL BD LUX 09/30 USD 15.44 –9.4 –8.1 0.3 Gl Conservative B US BA LUX 09/30 USD 14.44 –14.5 –14.9 –4.2 Real Estate Sec. I OT EQ LUX 09/30 USD 16.64 –21.1 –27.8 –14.4 Securities and Exchange Commission and aren’t available for sale to United Emg Mkts Debt I GL BD LUX 09/30 USD 13.55 –8.3 –6.6 1.9 Gl Conservative B2 US BA LUX 09/30 USD 15.28 –14.4 –14.8 –4.2 Short Mat Dollar A US BD LUX 09/30 USD 7.43 –13.8 –15.1 –6.4 States citizens and/or residents except as noted. Prices are in local currencies. Emg Mkts Growth A GL EQ LUX 09/30 USD 29.22 –36.8 –35.1 –0.8 Gl Conservative I US BA LUX 09/30 USD 14.45 –13.4 –13.4 –2.7 Short Mat Dollar A2 US BD LUX 09/30 USD 9.53 –13.8 –15.2 –6.5 All performance figures are calculated using the most recent prices available. NAV — %RETURN — Emg Mkts Growth B GL EQ LUX 09/30 USD 25.07 –37.3 –35.8 –1.8 Gl Eq Blend A GL EQ LUX 09/30 USD 12.31 –34.5 –36.9 –12.9 Short Mat Dollar B US BD LUX 09/30 USD 7.43 –14.1 –15.5 –6.8 FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR Emg Mkts Growth I GL EQ LUX 09/30 USD 32.07 –36.5 –34.6 0.0 Gl Eq Blend B GL EQ LUX 09/30 USD 11.70 –34.9 –37.6 –13.7 Short Mat Dollar B2 US BD LUX 09/30 USD 9.54 –14.1 –15.6 –6.8 Eur Blend A EU EQ LUX 09/30 EUR 12.12 –31.1 –34.8 –14.3 Gl Eq Blend I GL EQ LUX 09/30 USD 12.86 –34.0 –36.4 –12.2 Short Mat Dollar I US BD LUX 09/30 USD 7.43 –13.4 –14.6 –5.9 Eur Blend I EU EQ LUX 09/30 EUR 12.35 –30.7 –34.3 –13.6 Gl Growth A GL EQ LUX 09/30 USD 44.78 –35.2 –35.3 –11.5 Eur Growth A EU EQ LUX 09/30 EUR 7.28 –30.1 –31.6 –11.5 Gl Growth B GL EQ LUX 09/30 USD 37.85 –35.7 –35.9 –12.3 Eur Growth B EU EQ LUX 09/30 EUR 6.63 –30.6 –32.3 –12.4 Gl Growth I GL EQ LUX 09/30 USD 49.22 –34.8 –34.8 –10.7 Eur Growth I EU EQ LUX 09/30 EUR 7.86 –29.6 –31.1 –10.8 Gl High Yield A US BD LUX 09/30 USD 3.97 –12.1 –12.3 –0.9 Eur Income A EU BD LUX 09/30 EUR 6.00 –10.3 –11.4 –5.8 Gl High Yield A2 US BD LUX 09/30 USD 7.48 –12.2 –12.4 –0.9 Eur Income A2 EU BD LUX 09/30 EUR 10.70 –10.4 –11.4 –5.8 Gl High Yield B US BD LUX 09/30 USD 3.97 –12.8 –13.2 –1.9 Eur Income B EU BD LUX 09/30 EUR 6.00 –10.8 –12.0 –6.5 Gl High Yield B2 US BD LUX 09/30 USD 12.18 –12.8 –13.2 –1.9 n ALLIANCE BERNSTEIN Eur Income B2 EU BD LUX 09/30 EUR 10.04 –10.8 –12.1 –6.5 Gl High Yield I US BD LUX 09/30 USD 3.97 –11.7 –11.8 –0.4 n www.alliancebernstein.com/investments Tel. +800 2263 8637 BANC INTERNACIONAL D'ANDORRA. BANCA MORA. Eur Income I EU BD LUX 09/30 EUR 6.00 –9.9 –10.9 –5.3 Gl Value A GL EQ LUX 09/30 USD 11.62 –33.7 –38.6 –14.3 Avgd. Meritxell 96, Andorra la Vella. Andorra. Ph. +376.884884 www.bibm.ad Am Blend Portfolio A US EQ LUX 09/30 USD 10.68 –26.2 –29.2 –10.0 Gl Value B GL EQ LUX 09/30 USD 10.81 –34.2 –39.2 –15.2 Eur Strat Value A EU EQ LUX 09/30 EUR 9.40 –32.7 –38.3 NS Andfs. Anglaterra UK EQ AND 09/30 GBP 7.23 –23.7 –23.3 –8.7 Am Blend Portfolio I US EQ LUX 09/30 USD 12.45 –25.7 –28.7 –9.3 Eur Strat Value I EU EQ LUX 09/30 EUR 9.53 –32.2 –37.7 NS Gl Value I GL EQ LUX 09/30 USD 12.24 –33.3 –38.1 –13.7 Andfs. Borsa Global GL EQ AND 09/30 EUR 7.09 –25.9 –27.2 –10.0 Am Growth A US EQ LUX 09/30 USD 26.78 –25.0 –24.6 –5.9 Eur Value A EU EQ LUX 09/30 EUR 9.48 –31.8 –36.6 –15.4 India Growth A EA EQ LUX 09/30 USD 75.24 –45.5 –33.0 4.5 Andfs. Emergents GL EQ AND 09/30 USD 13.92 –34.5 –32.7 0.8 Am Growth B US EQ LUX 09/30 USD 22.81 –25.5 –25.3 –6.8 Eur Value B EU EQ LUX 09/30 EUR 8.83 –32.3 –37.3 –16.3 India Growth B EA EQ LUX 09/30 USD 65.10 –45.9 –33.7 3.5 Andfs. Espanya EU EQ AND 09/30 EUR 12.78 –27.6 –24.5 –8.3 Am Growth I US EQ LUX 09/30 USD 29.39 –24.5 –24.0 –5.1 Eur Value I EU EQ LUX 09/30 EUR 10.84 –31.4 –36.1 –14.8 India Growth I EA EQ LUX 09/30 USD 77.58 –45.4 –32.8 4.8 Andfs. Estats Units US EQ AND 09/30 USD 15.53 –23.5 –22.7 –6.4 Am Income A US BD LUX 09/30 USD 7.75 –5.9 –4.3 0.5 Gl Balanced (Euro) A EU BA LUX 09/30 USD 16.19 –23.9 –24.1 NS Int'l Health Care A OT EQ LUX 09/30 USD 139.33 –15.1 –15.9 –5.1 Andfs. Europa EU EQ AND 09/30 EUR 7.85 –29.2 –30.1 –11.6 Am Income A2 US BD LUX 09/30 USD 16.14 –6.0 –4.4 0.5 Gl Balanced (Euro) B EU BA LUX 09/30 USD 15.97 –24.4 –24.8 NS Int'l Health Care B OT EQ LUX 09/30 USD 119.00 –15.7 –16.8 –6.1 Andfs. Franca EU EQ AND 09/30 EUR 10.06 –28.5 –29.9 –13.4 Am Income B US BD LUX 09/30 USD 7.75 –6.4 –5.0 –0.2 Gl Balanced (Euro) C EU BA LUX 09/30 USD 16.12 –24.1 –24.3 NS Int'l Health Care I OT EQ LUX 09/30 USD 150.70 –14.6 –15.2 –4.4 Andfs. Japo JP EQ AND 09/30 JPY 538.88 –30.2 –36.8 –18.1 Am Income B2 US BD LUX 09/30 USD 14.04 –6.5 –5.1 –0.2 Gl Balanced (Euro) I EU BA LUX 09/30 USD 16.35 –23.5 –23.5 NS Int'l Technology A OT EQ LUX 09/30 USD 99.39 –29.9 –30.2 –5.7 Andfs. Plus Dollars US BA AND 09/30 USD 9.17 –14.3 –14.8 –4.8 Am Income I US BD LUX 09/30 USD 7.75 –5.5 –3.8 1.1 Gl Balanced A US BA LUX 09/30 USD 15.90 –23.2 –24.5 –7.2 Int'l Technology B OT EQ LUX 09/30 USD 87.21 –30.4 –30.9 –6.7 Andfs. RF Dolars US BD AND 09/30 USD 10.50 –7.3 –7.3 –2.3 Am Value A US EQ LUX 09/30 USD 8.57 –26.3 –29.5 –10.7 Gl Balanced B US BA LUX 09/30 USD 15.31 –23.8 –25.2 –8.2 Int'l Technology I OT EQ LUX 09/30 USD 110.33 –29.5 –29.6 –5.0 Andfs. RF Euros EU BD AND 09/30 EUR 9.76 –11.6 –12.6 –6.8 Am Value B US EQ LUX 09/30 USD 7.99 –26.8 –30.2 –11.6 Gl Balanced I US BA LUX 09/30 USD 16.35 –22.8 –24.0 –6.6 Japan Blend A JP EQ LUX 09/30 JPY 7125.00 –28.6 –36.2 –18.3 Andorfons EU BD AND 09/30 EUR 13.32 –12.9 –14.8 –8.1 Am Value I US EQ LUX 09/30 USD 9.13 –25.9 –28.9 –10.0 Gl Bond A US BD LUX 09/30 USD 8.60 –3.9 –2.4 1.4 Japan Blend I JP EQ LUX 09/30 JPY 7259.00 –28.2 –35.6 –17.6 Asian Technology A OT EQ LUX 09/30 USD 11.76 –26.7 –33.3 –12.5 Gl Bond A2 US BD LUX 09/30 USD 14.12 –3.9 –2.5 1.4 Japan Growth A JP EQ LUX 09/30 JPY 7092.00 –28.3 –35.8 –18.5 Please turn to next page 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]