36 WEDNESDAY, OCTOBER 7, 2009 THE WALL STREET JOURNAL. Leading the News: Turkey, Armenia move closer to border-opening deal HEARD ON THE STREET VOL. XXVII NO. 173 WEDNESDAY, OCTOBER 7, 2009 Email: [email protected] Financial Analysis and Commentary More at WSJ.com/Heard EUROPEEUROPE europe.WSJ.com Australia reacts to asset prices China’s capacity problem Demonstrators protest IMF, World Bank meetings China’s leadership has company profits fell 10.6%

The Australian central country fretting about asset delay hiking too long and been celebrating 60 years of on year through August, Œ3 What’s bank’s decision to raise inter- Target rates prices. The Norwegian cen- much tougher action may be the People’s Republic. But with state-owned industrial Sterling looks est rates Tuesday marks a sig- tral bank has voiced similar required later on. there are signs it’s not quite company profits off 25.2%. Current benchmark rates - Germany 7 7

kr 29 News nificant moment in the evolu- convinced of the economic The evidence underscores Œ3 in selected countries: concerns. Global excess liquid- The snag is that rate in- tion of the global financial ity also looks to be fueling po- creases by smaller econo- course it has engineered. the discrepancy between cau- An unexpected increase in 6.0%

Just before the Oct. 1 fes- tion at home and overseas - France crisis. Not just because Aus- tentially destabilizing asset mies will make little differ- - Sweden Australian interest rates re- tralia is the first G-20 coun- surges in several Asian econo- ence to the global excess li- tivities, China’s State Coun- optimism about China’s ex- Œ3 vived hopes of economic re- ready to join Œ3.20 try to tighten monetary pol- mies, including India, South quidity that is fueling asset- cil slipped out plans to slash pansion and ability to sup- covery, sending stocks in Eu- 4.0 - Spain icy this year, following the Korea and Taiwan. The mar- price inflation around the overcapacity in key indus- port the global economy. It rope and the U.S. sharply - Finland Bank of Israel’s rate increase ket expects these countries to world. That will depend on tries, including aluminum, also shows Beijing’s chal- higher, and pushed gold to a steel and cement. lenge in keeping growth in the summer. More intrigu- raise rates early next year. the actions of the major Dkr 25 record. Asian gains were ing were the likely reasons 2.0 But following Australia’s deci- economy central banks. The plans underline a di- steady into the future. Œ3.32/Sk 100 more muted. Pages 23, 26 the sick list lemma facing China: While Chinese Premier Wen Jia- for the 0.25 percentage point sion, they may feel tempted Given the size of their cur- n - Denmark Boeing set a $1 billion rise, which could have impli- to move earlier to lean rent output gaps, which monetary and fiscal stimulus bao recently warned that the - Slovakia By Neil Shah

Œ3 charge on its 747-8, another 0 have supported growth rates pickup in growth this year cations for the global rate- against the wind and try to should keep a lid on infla- Kc 110 China Euro U.K. U.S. blow to its commercial-air- Pounded tightening cycle expected to tame some of the exuberance. tion for the foreseeable fu- around the 8% annual target “remains unstable, unconsoli- After wobbling for the past Australia zone craft business in the wake of Over the past year, the yen, begin in earnest next year. ture, and the fragility of this year, they have also dated, and imbalanced.” - Portugal few weeks, the British pound True, breaking away deepened excesses. Optimists, looking ahead, Dreamliner troubles. Page 11 euro and U.S. dollar have

Source: Trading Economics Zl 12 nose-dived in the wake of Most economists pre- early from what Morgan their banking systems, the been gaining strength

According to government suggest a recovery in ex- - Czech Republic dicted Australia would raise U.S. Federal Reserve, the Eu- n The soaring euro is threat- weaker-than-expected eco- Stanley dubs the monetary figures, some industries are ports and rising household against the pound rates this year, but few had prices, particularly houses. policy peloton isn’t without ropean Central Bank and the - Poland ening the ECB’s efforts to nomic news, raising the pros- awash with capacity. If all consumption will keep the HRK 22 expected it so soon, with in- The Reserve Bank of Austra- risks. Most major economies Bank of England are unlikely keep the economic recovery pect that the U.K. currency

planned cement projects Chinese economy buoyant. Nkr 29 flation still just 1.5%, well be- lia had previously voiced aren’t expected to start rais- to raise rates until the sec- on track. Page 2 could be in for a renewed bout 45% were implemented, annual If those supporting fac- - Croatia ond half of 2010. of weakness against major cur- low the 2%-3% target. Austra- concerns that interest rates ing rates until at least the output would rise to 2.7 bil- tors don’t come quickly, Œ3 n Australia became the first lia may be one of the only of just 3%, down 4.25 per- second half of 2010. Coun- For investors, an uncoor- - Norway rencies. lion tons a year, against do- there will be pressure to sup- Œ3 G-20 country to raise inter- yen economies in the world fore- centage points from their tries that make an early dinated monetary-policy exit est rates since the financial 30 mestic demand of 1.6 billion plement the fiscal stimulus, - Belgium cast by the International Mon- peak in March 2008, were break run the risk that strategy could open up prom- tons, the State Council said. especially with the Chinese Œ3 crisis, making it easier for Currency moves etary Fund to grow this year, fueling excessive house- higher rates and a stronger ising trades, particularly in others to follow. Page 23 euro Beijing is aware of the government—on the surface - Netherlands n Asian central banks act.25 ...... £1.50 but at 0.7% growth, output price inflation. House prices currency will choke off the foreign-exchange markets. Œ3 15 problem, warning that ex- at least—enjoying relatively n Iceland is closer to agree- n Fujii defends the dollar.28 ...... remains below potential and were up 8% in the first eight recovery. The Australian dol- With the dollar the obvious dollar cess capacity would lead to low debt levels. Squaring ing on loan terms to repay unemployment is still rising. months of this year, accord- lar, already up 23% this year funding currency, that declining profits and, in that with the overcapacity the U.K. and Netherlands, its U.K. industrial production ing to the RP Data-Rismark means more short-term pres- 0 What appears to have against the U.S. dollar, appre- turn, company closures and issue will then become a - Luxembourg finance minister said. Page 2 declined in August, undercut- swayed the central bank is Home Value index. ciated further after the rate sure on the greenback. unemployment. The signs knottier challenge. – United Kingdom ting optimism about a swifter- 2008 ’09 the huge rally in asset n SocGen will repay govern- Australia isn’t the only increase. On the other hand, —Simon Nixon are there: Chinese industrial —Andrew Peaple $2.20 L£ 6000 than-expected economic re- ment funds it received at the Source: WSJ Market Data Group covery. That news helped peak of the financial crisis via

- Lebanon drive share prices higher, a rights issue that will raise Œ3 partly on the expectation that sorted good banks from bad around $7 billion. Page 23

- U.S. Military (Eur) policy makers would have to banks earlier this year, foreign- - Italy

Œ3 n Tesco reported a slight first- keep monetary conditions ex- exchange buyers are starting

U.S. pay czar: Cut cash salaries U.K. parties promise cuts TL 4.5 half profit increase, helped cessively easy for some time in to sort strong currencies from By Deborah Solomon ple said. Such a move, the most intru- Chrysler LLC and Chrysler Financial. Continued from first page one of the key Conservative by improvement in the U.K. order to ensure economic re- weaker currencies. The pound sive yet into corporate compensa- The move will further reshape aged by a deep economic recession. pledges—an early rise in the retire- - Turkey and growth in Asia. Page 6 covery. That domestic stance, appears to be joining the dol- tion, would mark the government’s pay at those companies and could He said the Conservatives would ment age—would raise far less than - Ireland (Rep.) of course, undercuts the attrac- lar in the weak camp. Both

WASHINGTON—The Obama ad- S£ 210 n Saudi King Abdullah ministration’s pay czar is planning to first effort to curb the take-home complicate efforts by some of those cut the cost of central government the £13 billion a year Conservatives Ft 650 tiveness of the pound to for- countries have near-zero inter- makes his first trip to Syria clamp down on compensation at com- pay of everyone from auto execu- seven companies to attract top exec- bureaucracy by at least a third, sav- estimate. “We were told his speech - Syria eign-exchange investors. est-rate targets, an aggressive this week, hoping to build panies receiving large sums of gov- tives to financial traders. utives and employees. ing roughly £3 billion a year by 2015. would tell us everything we needed SF 5 The tough U.K. economic policy aimed at boosting the - Hungary Arab consensus on major re- ernment aid by cutting annual cash Mr. Feinberg is expected to issue The issue could be particularly Ministers’ salaries would be cut to know about how the Tories would Œ3 news coincided with a short- economy, and yawning defi- gional issues. Page 14 salaries for many of the top employ- by mid-October his determination on acute for Bank of America, which is by 5% and frozen thereafter and a fu- get the deficit down. But he lost his term rate increase by the Aus- cits. The euro and Japanese For information or to subscribe, visit www.services.wsje.com or call +44 (0) 207 309 7799 — Austria Greece ees under his authority, according to pay packages for 175 of the most- searching for a successor to Ken- ture Conservative chancellor of the nerve,” Mr. Byrne said. Switzerland n Sweden’s finance minister tralian central bank, the first yen have edged higher, and so- people familiar with the matter. highly compensated executives and neth Lewis, who announced plans to exchequer would have to approve ev- Mr.Osborne said bankers’ wouldn’t said Latvia won’t get addi- Group of 20 nation to raise called commodity currencies, Instead of awarding large cash employees at the seven firms he over- resign as chief executive of the com- ery request for a public-sector salary get away with excessive bonuses un- tional rescue-loan payments rates since the financial crisis such as the Canadian and Aus- salaries, Kenneth Feinberg plans to sees: American International Group pany last week. A Bank of America more than the prime minister’s wage. der a Conservative government. He unless government spending intensified more than a year tralian dollars, seem the most shift a chunk of an employee’s an- Inc., Bank of America Corp., Citi- spokesman said the bank declined Liam Byrne, chief secretary to said he would reserve the right to use is slashed further. Page 25 ago. That move boosted the strongly positioned. Oil-rich nual salary into stock that can’t be group Inc., General Motors Co., to comment on compensation is- the treasury, accused Mr. Osborne the tax system to claw back large pay Australian dollar to its stron- Norway is also in the favored n Shell plans to raise North Associated Press touched for several years, these peo- GMAC Financial Services Inc., sues regarding the chief executive. of talking the country down and said and bonuses paid by banks. gest level against the pound camp, and its central bank is ex- American natural-gas output, STREET ACTION: Turkish police fired warning shots into the air and used water cannons, tear gas since 1985. pected to follow Australia believing prices will recover and pepper spray on Tuesday to disperse hundreds of stone-throwing activists in Istanbul. Similar to how investors from current lows. Page 6 Please turn to page 36 n Exxon plans to buy a $4 Some fear pound will land next to U.S. dollar on sick list billion stake in an oil field off Inside Ghana’s coast as it pursues a Conservatives vow public-sector pay freeze Continued from first page lows against the dollar and euro. Af- 92.61 pence midday Tuesday in New omy despite tentative signs of eco- foothold in the region. Page 6 with a rate increase soon. ter trading as high as $1.70, the York. nomic improvement. Many believe Green shot n Roman Polanski lost his Not all countries are pleased with pound was at $1.5909 late Tuesday But other observers remain up- the Bank of England may move to ex- By Laurence Norman Osborne announced were a U.K. output indexes, first bid to win his freedom, how the sorting is unfolding, and in- in New York, down from $1.5944 late beat about the pound’s future. “It is pand the program again, possibly in one-year pay freeze for all pub- month-to-month change as the Swiss Justice Minis- tervention in the currency markets Monday,around the low end of its re- not surprising that there are stress November. Meanwhile, Bank of Eng- MANCHESTER, U.K.—Brit- lic-service workers earning try rejected an appeal to re- has increased substantially in the cent range. fractures in the U.K. But the pound is land Gov. Mervyn King has said that ain’s opposition party de- more than £18,000 ($28,650). Industrial Manufacturing lease him from prison. Page 3 past few weeks. While central banks A weaker pound is adding to con- 1% an international reserve currency, weaker sterling and lowering inter- tailed a number of measures it The Conservatives say the didn’t confirm such moves, traders sternation among euro-zone export- and London is still the financial cen- est rates on reserves held at the cen- n Greece’s Socialist leader would take to improve public measure would save taxpay- believe South Korea, Thailand and ers. Already dealing with a weak dol- 0 ter of the world,” says Stephen Jen, tral bank might be helpful for the ers roughly £3.2 billion. Mr. Os- 0 George Papandreou was finances, vowing a one-year Singapore intervened Tuesday to lar, now these countries face the managing director at BlueGold Capi- U.K. economy, something markets in- sworn in as prime minister. pay freeze for most public sec- borne confirmed the party slow their currencies’ rise against prospect that the pound will also fall tal Management LLC in London, who terpreted last month as a sign the tor workers beginning in 2011. plans an early increase in the Solution as problem n Renault agreed to help in- the dollar. Switzerland is believed to hard against the euro. That would –1 says sterling is undervalued. If the central bank is still worried about retirement age to 66 as soon debted Russian auto maker German coal-burning plants have made a similar move last week, make euro-zone exports to the U.K., euro keeps rising against the pound the economic recovery. The Bank of as 2016 and said the party AvtoVAZ, though not necessar- Playing with a lead spark ire with CO burial plan and Japan has spoken loudly about the zone’s biggest trading partner, –2 and dollar, it could become a major England’s next policy meeting be- would eliminate means-tested 2 ily by providing cash. Page 11 News in Depth, pages 20-21 taking its own steps to arrest the relatively more expensive. That sce- problem for Europe’s economies in gins Wednesday. n U.K. Tories strategize………………5 benefits for families earning yen’s gains. nario could hamstring Europe’s own –3 coming months. The region’s biggest Thanos Papasavvas, head of cur- n The physics Nobel went more than £50,000 and would While the dollar’s weakness is get- ability to recover from the recession. ’08 ’09 ’08 ’09 economy, Germany, depends heavily rency management at Investec Asset to three scientists who har- In his keynote speech to no longer hand out a £250 Markets ting most of the attention, the pound Investors again are focusing on Source: U.K. Office for National Statistics on exports to fuel growth, while Management, says much of the zig- nessed the power of light to the Conservative party an- “child trust fund” for babies 4 p.m. ET may face an even bleaker future than the U.K.’s heavy dependence on the fi- smaller economies like Spain and Ire- zagging in the U.K. currency is be- help make the Internet a glo- nual convention—the last be- born to wealthier families. PCT the greenback. nancial sector and how that part of land are also hoping that exports cause investors have been whip- fore a general election due in He announced a cap for CLOSE CHG

bal phenomenon. Page 5 Getty Images Investors speculate that U.K. offi- the economy faces a long, torpid re- be held before next June, could add could help revive growth. sawed so many times during the fi- mid-2010—the party’s trea- public-sector pensions at DJIA 9731.25 +1.37 cials may favor a weaker currency covery, at best. Unlike the Reserve to market uncertainty as political And there are reasons to be espe- nancial crisis. Some may have Editorial&Opinion sury chief, George Osborne, Shadow chancellor George Osborne addresses delegates on debt £50,000 a year. Nasdaq 2103.57 +1.71 and could take additional measures Bank of Australia, the Bank of Eng- squabbling intensifies ahead of the cially concerned about the U.K., missed out on sterling’s rally earlier said a Conservative govern- Thursday at the Conservative convention in Manchester, England. Mr. Osborne pitched the DJ Stoxx 600 241.17 +2.15 to boost Britain’s ailing economy. land isn’t expected to raise short- vote. “Foreign investors are taking some observers say. this year, then bought the currency New Toryism ment would have an “unwa- call for savings with a prom- FTSE 100 5137.98 +2.26 In the third quarter, sterling lost term rates anytime soon. Indeed, it fright,” says Stuart Thomson, an The U.K. currency’s downdraft as it neared its highest levels. They Cameron’s Conservatives vering commitment to fiscal ise that no single group would DAX 5657.64 +2.70 2.9% of its value against the dollar is mulling even more aggressive economist at Ignis Asset Manage- picked up steam in early August, may now be looking for opportuni- have lost responsibility.” said it was freezing salaries they can improve the public fi- have to bear the brunt of re- CAC 40 3770.21 +2.59 and gave up 6.9% against the euro, re- moves to ease monetary conditions ment in Glasgow, who says sterling when the Bank of England surprised ties to get out of those positions, sug- their way. Page 17 The move comes the day af- for higher paid public-sector nances without slashing front- storing the U.K.’s public fi- Euro $1.4748 +0.82 versing a positive second quarter in in a bid to boost the economy. could hit $1.51 by year-end and the investors by expanding the size of a gesting the pressure on the pound ter Prime Minister Gordon workers from April 2010 as line services. nances, which have been rav- Nymex crude $70.88 +0.67 which it rebounded from multiyear The U.K.’s elections, which must euro could rise to 95 pence from program to pump cash into the econ- may be short-lived. Breaking news at europe.WSJ.com Brown’s Labour government the two parties battle to show Among the measures Mr. Please turn to page 36 2 WEDNESDAY, OCTOBER 7, 2009 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. WEDNESDAY, OCTOBER 7, 2009 35 LEADING THE NEWS MARKETPLACE Finance minister says Iceland deal is closer Samsung sees sales rise Glaxo’s effort to curb landic counterpart and that “things try’s annual gross domestic product. end, Iceland would end up paying 250 wholesalers gets a boost Sigfússon describes Big debts are moving ahead.” A spokesman Iceland’s parliament spent all sum- billion to 300 billion kronur,or around Sharp rise in prices for the U.K. Treasury said negotia- mer debating a government plan to re- 20% of GDP. But parliament’s amend- By Mike Gordon [Glaxo’s] general sales conditions in talks to repay U.K. Repayments to the U.K. and the tions were ongoing and declined to imburse the two countries. In the end, ment leaves it unclear what happens for chips and LCDs And Charles Forelle Spain may be exempted from the Netherlands could make a sizeable comment further. they approved it oversubstantial pop- after 2024 if the country slows down community competition rules,” the and Netherlands dent in Iceland’s economy, in kronur Iceland’s economy collapsed ular discord, but added language indi- repayments and a balance remains. is buoying company LUXEMBOURG—Europe’s high- court said in a statement. spectacularly last year, after the cating that Iceland would slow down Mr. Sigfússon also said Iceland est court Tuesday said regulators Tuesday’s ruling from the Luxem- Iceland, the U.K. and the Nether- country’s outsized banks, which had its repayments if its economy took an- is sticking to plans to begin lifting A WSJ NEWS ROUNDUP need to give greater consideration bourg-based European Court of Jus- lands are closer to agreeing to loan moved aggressively abroad in the other hit in the future. capital controls on the flow of cur- SEOUL—Samsung Electronics to a plea by U.K. drug maker Glaxo- tice is one in a line of judgments sug- terms for Iceland to repay the mas- preceding years, suddenly couldn’t “People find it vey difficult to ac- rency in and out of the country by Co., a global behemoth in memory SmithKline PLC that it be exempted gesting the court is skeptical of that sive losses by foreign depositors in finance their borrowings. The gov- cept that they, their children and late fall, though “obviously the de- chips and flat-screen TVs, expects from normal competition rules in its reasoning, and that Glaxo’s argu- the collapsed Icesave Internet bank, ernment seized them. even their grandchildren may have lay in the IMF loan means that we third-quarter sales to rise about 19% efforts to curb wholesalers known ment that it needs to restrict sales in said Iceland Finance Minister Stein- Iceland’s One bank, Landsbanki Islands, to bear the burden that banks in- can’t really plan those steps yet.” and sees its consolidated operating as “parallel traders,” who buy drugs order to preserve profits that fund grímur Sigfússon. 2008 GDP had offered an Internet account curred abroad,” Mr. Sigfússon said. He said the first step would be to profit coming in between 3.9 tril- in price-capped markets to resell drug research may have merit. But 1.48 called Icesave that offered high in- Though the Icesave debate has lift controls on new investments lion won and 4.3 trillion South Ko- elsewhere at higher markups. the court stopped short of blessing By Marc Champion in Istanbul trillion terest rates and took in more than strained the coalition between Mr. and inflows, and for others to fol- rean won ($3.67 billion). Separately, the European Com- Glaxo’s actions. and Charles Forelle in Brussels U.K. loan $5 billion in deposits in the U.K. and Sigfússon’s Left-Green Movement low later. “Lifting the controls Operating profit totaled 1.48 tril- An EU antitrust spokesman said 463 billion mission on Tuesday said it launched the Netherlands. and the ruling Social Democrats, he would be more important for its lion won in the third quarter of antitrust raids at several pharma- the regulator was going to study the “I feel there is a real will now to Under European Union rules to said he didn’t expect the govern- symbolic value, showing that we 2008. ceutical companies. It didn’t name court ruling. move ahead,” said Mr. Sigfússon, after Netherlands loan which Iceland subscribes, Iceland ment to collapse, contrary to media are on track,” he said. The company, South Korea’s big- Reuters them, but Sanofi-Aventis SA of Both the commission and Glaxo what he described as good meetings 241 billion must provide deposit insurance for reports that it was on the verge of The IMF agreed in late 2008 to gest by market capitalization, on While semiconductor and liquid-crystal-display prices have firmed, Samsung has France, Israeli generic maker Teva brought the case before the Court of on the issue with his British and Dutch about the first Œ20,000 ($29,000) of collapsing. lend $2.1 billion to Iceland over two Tuesday estimated consolidated to deal with the strengthening South Korean currency. Pharmaceuticals Industries Ltd. Justice for review. The commission counterparts at theInternational Mon- Source: Statistics Iceland every account, regardless of Under the broad terms of the Ice- years. The first $827 million install- sales of between 35 trillion won and and the generics unit of Swiss drug argued that the lower court was etary Fund’s annual meeting in Istan- whether an Icelander or a foreigner save deal, Iceland doesn’t have to ment was released, but the remain- 37 trillion won for the third quarter. maker Novartis AG all said their of- wrong to reverse part of its deci- bul. He said the situation in the U.K. in owns it. make payments for the first seven der has been held up. That compares with sales of 30.3 tril- current quarter due to strengthen- Samsung is the world’s largest fices were raided. sion; Glaxo wanted the commis- particular had changed as the issue of Mr.Sigfússon declined to discuss Iceland’s tiny deposit-insurance years, and then has eight years to Mr. Sigfússon said there was lit- lion won a year earlier. ing local currency and seasonally manufacturer of DRAM, or dynamic Sanofi and Novartis said the com- sion’s entire finding dismissed. lost Icelandic savings moved out of details of his talks with the Dutch fund couldn’t come close to cover- pay the balance with interest. tle urgency to lift the controls. He The company is expected to an- higher marketing costs. ransom access memory, chips, panies were cooperating, and a Teva Glaxo’s sales conditions applied newspaper headlines there. and British finance ministers. But he ing the Icesave claims after Lands- Iceland will have a claim on some said parts of the real economy were nounce its quarterly earnings Oct. A poll of 13 analysts by local re- NAND flash memory chips, flat- spokeswoman said the inquiry is fo- to 82 of its drugs, of which Glaxo had “We are all getting a little bit em- said one major sticking point re- banki collapsed, so the British and of Landsbanki’s assets. Icelandic of- doing well as a result of the weak 30. All figures are on a consolidated searcher FnGuide put Samsung’s screen televisions and liquid crystal cused on the French generic drug singled out eight as being prime can- barrassed by this—the IMF program mains that the U.K. and Netherlands Dutch governments stepped in to ficials have said that as much as 75% krona, including tourism and the basis. third-quarter operating profit at 3.7 displays. The company is the market and that Teva France “has didates for parallel import from is constantly being delayed,” said want a guarantee they will have pay their own citizens. The two of the balance owed to the U.K. and fishing industry. The value of the Samsung didn’t provide an expla- trillion won. The consolidated sales world’s second-largest maker of mo- conducted its business in a responsi- Spain into the UK. These were al- Mr. Sigfússon in an interview. The been paid back in full in 15 years. countries are seeking the money the Netherlands could be recovered krona has halved in the past year. nation for the earnings guidance forecast is 36 trillion won, in line bile phone handsets behind Nokia ble manner.” lergy drug Beconase, asthma prod- fund has pledged substantial aid to A spokeswoman for the Dutch fi- back from Iceland. from those assets. Economic growth is projected to fall and said the latest forecasts may dif- with Samsung’s estimates. Corp. ucts Becloforte, Becotide, Flixotide, Iceland, but the Icesave dispute has nance minister, Wouter Bos, con- Iceland owes about 700 billion kro- Mr. Sigfússon said that estimate 8.5% this year, while unemployment fer from actual earnings because it “Market share really jumped on DRAMs are used mostly in per- In the parallel-trading case, the Serevent and Ventolin, epilepsy slowed it down. firmed Mr. Bos had met with his Ice- nur ($5.6 billion), or 50% of the coun- was realistic. He figured that, in the reached 9.1% in the second quarter. hasn’t completed an audit. all fronts—DRAM, flash, handsets, sonal computers, while NAND flash European Commission in 2001 said drug Lamictal, and migraine-relief Analysts said the recent sharp TVs, LCD panels,” said Jay Kim, who chips are used in devices such as dig- Glaxo violated the bloc’s common- drug Imigran. rise in memory chip prices and im- follows Samsung for Hyundai Securi- ital cameras and music players. market rules by asking Spanish In another landmark case, in proved prices for liquid-crystal dis- ties in Seoul. Samsung recorded its first ever wholesalers to charge higher prices 2000, judges struck down the com- plays, combined with continued Despite the news, shares of the net loss in the fourth quarter of for drugs resold outside of Spain. Its mission’s decision to fine Germa- Strong euro weighs on ECB effort to keep recovery on track firm performances in Samsung Elec- electronics giant slipped. In Seoul 2008 as the global economic slump aim was to block parallel traders. ny’s Bayer AG Œ3 million ($4.4 mil- tronics’ other businesses, are buoy- trading, the stock fell 2000 won to hit prices and demand. The com- The EU long frowned on pharma- lion) for restricting sales of a heart By Geoffrey T. Smith cusing on the euro exchange rate— forts to make life easier for Euro- the first concern, economists say. for European policy makers. ing the company’s third-quarter 745,000 won, though they still out- pany returned to profit in the first ceutical companies’ engaging in “dif- disease drug in Spain and France. which the ECB is unlikely to do any- pean businesses. Holding down inflation is a longer- The euro’s latest surge came af- profits. However, they expect its performed the broader index, which quarter of this year, though it was ferential pricing” or other tactics to Last year, the Court of Justice, in FRANKFURT—The soaring euro thing about. Euro-zone policy mak- “The [global] recovery is going to term problem. ter a weekend meeting of finance earnings growth to taper off in the fell 0.5%. down sharply from the year before. stop the exporters, believing the ac- a case involving Glaxo and Greek par- is threatening the European Central ers worry that the ECB’s best effort be pretty anemic anyway, and the “The ECB can, as far as we can see ministers and central bankers from tions violated principles of free allel traders, said Glaxo could limit Bank’s efforts to keep the recovery to fine-tune the shift from an expan- euro is one reason why it will be partic- over the next year,maintain a very ac- the Group of Seven leading industri- trade inside the bloc. sales to the wholesalers, though it on track. sive to a tighter, more anti-inflation- ularly anemic in the euro zone,” said commodative monetary policy,” alized nations in Istanbul failed to The Court of Justice’s ruling couldn’t completely cut them off. It The currency, not interest rates, ary policy of higher interest rates Dominic Bryant, an economist with Jörg Decressin, head of the Interna- convey any impression that China Tuesday upheld a lower court judg- didn’t define where the limits now dominates concerns about the du- and less liquidity will be thwarted BNP Paribas in London. A strong cur- tional Monetary Fund’s department and other Asian countries will soon LCD recovery comes under threat ment that found the commission should be set. rability of the 16-country euro zone’s by the euro’s strength. The euro has rency helps hold down inflation by re- for global economic studies, said in ease their currencies’ dollar pegs. had inadequately examined Glaxo’s —Mimosa Spencer, Matthew recovery.At its meeting Thursday, the risen nearly 8% against a basket of ducing prices paid for imported goods— an interview. But with unemploy- That has had the uncomfortable By Yun-Hee Kim “With the glass shortage dimin- try moved into oversupply during request for an exemption. “The com- Dalton and Julia Mengewein ECB’s policy board isn’t expected to major trading partners’ currencies particularly commodities priced in ment in the euro area already at a effect, for the ECB, of boosting the ishing in Taiwan, and [eighth-gener- September when both TV- and moni- mission must reconsider whether contributed to this article change interest rates or its less-con- since February, with much of that dollars, such as oil. But it also makes a 10-year high and rising, and with euro at the expense of the dollar and HONG KONG—The rush by Asian ation plants] ramping up in Korea, tor-panel prices began to fall. “We ventional monetary-policy measures, gain in the past month. The cur- country’s exports more expensive and many of the zone’s economies barely all the currencies tied to it. liquid-crystal-display makers to supply is growing faster than de- expect prices to fall throughout the which include bond purchases. rency is moving toward a new high less competitive on the global market. out of recession, the latest leg of the —Andreas Kissler ramp up production at home and in- mand,” said Paul Semenza, senior fourth quarter and the first quarter Instead, financial markets are fo- for the year offsetting the ECB’s ef- Protecting the recovery is now euro’s rally has come at a bad time contributed to this article. vest in new plants threatens to cur- vice president at U.S. market-re- of 2010,” he said. tail the nascent recovery in the flat- search firm DisplaySearch. According to Taiwan-based Wits- Glaxo has 440 million doses panel market. For consumers looking to re- View Technology Corp., a 32-inch LCD makers in Asia just started place their bulky cathode ray tube- LCD TV panel fetched $208 each CORRECTIONS & AMPLIFICATIONS to see their earnings recover in the based television sets or upgrade early October,down from $210 in late of swine-flu vaccine on order INDEX TO BUSINESSES second quarter after prices began to their flat-screen TVs, more efficient September. A 32-inch LCD TV set, rise thanks to production cuts made plants will translate into lower meanwhile, averaged $656 late Sep- By Jeffrey Sparshott unit, Baxter International Inc. and This index of businesses mentioned in today’s issue of The Wall Street Journal Europe is intended to include all significant references to compa- Keller Fay Group, a marketing re- in conversation. A Tuesday Technol- last year, component shortages and panel prices and more bargains on tember, down 5% from late August. CSL Ltd. nies. First reference to these companies appear in boldface type in all articles except those on page one and the editorial pages. search firm, surveys 100 consumers ogy article about online reviews by strong demand from China. But an- store shelves next year. LCD screens “The third quarter will likely be LONDON—U.K.-based drug Glaxo hasn’t released terms on each day to ask them about what consumers incorrectly said the firm other supply glut could be looming are also used in everything from mo- the cyclical peak for the LCD indus- maker GlaxoSmithKline PLC said government contracts or broken out products they mentioned to friends surveys 100 people each week. as soon as the current quarter as bile phones to computers. But for try,” said Peter Yu, an analyst at BNP governments around the world have cost per dose of the vaccine. How- Aer Lingus.1 ...... 2Bayer AG.3...... 5Comcast Corp..32 ...... Jefferies Group.27 ...... Renault .1...... 1 companies such as Sharp Corp., LCD makers, lower panel prices will Paribas in Seoul. “The industry is so far ordered 440 million doses of ever, Chief Executive Andrew Witty Alcoa .2...... 6Bilfinger Berger.12 ...... Credit Suisse .24...... Jones Lang LaSalle.33 .... Rio Tinto ...... 23,25 Samsung Electronics Co., LG Dis- likely put pressure on profits start- moving into a slow season and its pandemic swine-flu vaccine Pan- said in July that Glaxo was charging Cushman & Wakefield .33 J.P. Morgan Chase.24 ..... Royal Bank of Scotland All-Nippon Airways.11 ... BMW .1...... 2 play Co. and AU Optronics Corp. ing in early 2010. Sharp’s new plant [near Osaka, Ja- demrix as they brace for a possible wealthy nations ˆŒ7 ($10.26) per American Express.27...... BNP Paribas ...... 23,24,33 Daimler .1...... 2Keller Fay Group.2 ...... Group .2...... 7 INDEX TO PEOPLE ramp up production from new lines. Mr. Semenza said the LCD indus- pan] coming online doesn’t help.” resurgence of the illness. H1N1 vaccine shot and developing American International Boeing ...... 11,26 Deutsche Bank.24 ...... King Sturge Royal Dutch Shell .... 6,20 International.33 ...... RWE .2...... 1 In August, Glaxo said it had con- countries less. The drug maker is Group .3...... 6British Airways.12 ...... Deutsche Beteiligungs .12 This index lists the names of businesspeople and government regulators Knight Frank.33 ...... Samsung Electronics .35. tracts in place to supply 291 million also donating 50 million doses to Anadarko Petroleum.6 ... Cargolux Airlines DNO International ..24,26 who receive significant mention in today's Journal. Anglo American.23 ...... International.11 ...... DTZ Holdings.33 ...... Kosmos Energy.6 ...... Sanofi-Aventis.35 ...... doses of the H1N1 vaccine. Twenty- the World Health Organization. AngloGold Ashanti.26 .... CB Richard Ellis.33 ...... EnCana .6...... LG Display .35...... Savills .3...... 3 For more people in the news, visit two additional governments have or- European regulators recently ap- AU Optronics.3 ...... 5China National Offshore Exxon Mobil.6 ...... Lihir Gold .23...... Sharp .3...... 5 1 CareerJournal.com/WhosNews Disney shifts cable chief to film studio dered another 149 million doses, the proved Pandemrix amid deep con- Australia & New Zealand Oil .6...... First Service.33...... Lufthansa .11...... Société Générale .... 23,24 company said Tuesday. “Discus- cern about the new winter influenza Banking Group.27...... Chrysler.3...... 6 Lukoil .1...... 4Standard Chartered.27 ... By Ethan Smith In his 13 years at Disney Chan- ney Channel into a real creative en- Ford Motor.12 ...... Albaugh, Jim.11 ...... Gallagher, Justin.23 ...... McIlwee, Laurie.6 ...... sions continue with governments season and an upturn in U.K. cases Aviva .1...... 2Chrysler Financial.36 ...... Fortis Bank.27 ...... Mazda Motor.2 ...... 4Sumitomo Mitsui nel, Mr. Ross, 47 years old, has gine for the company.” Financial Group.28 ...... Al Fahim, Sulaiman.12 ...... Ghedini, Niccolo.3 ...... McNerney, Jim.1 ...... 1 for further supplies,” Glaxo added. of swine flu. AvtoVAZ .1...... 1Citigroup .3...... 6Freeport-McMoRan MCE Signaling what could be a major helped redefine not just the cable One key to Mr. Ross’s success, Sumitomo Metal Mining Al Faraj, Ali .12...... Godlasky,Tom .12...... Meyer, Ron .3...... 2 First supplies of the drug mak- Bank of America .24,27,36 Colliers CRE.33 ...... Copper & Gold.26 ...... Beteiligungsverwaltungs shift in the way it makes and mar- network, but the Disney brand it- said people close to the company, The U.K. government’s Health .1...... 2.2...... 3Apatow, Judd.32 ...... Harned, Douglas.11 ...... Mills, David .3...... GDF Suez .1...... 4 kets movies, Walt Disney Co. named self. Starting with the “Lizzie has been his willingness—even ea- er’s vaccine are scheduled to com- Protection Agency estimated there Mediaset.3...... Tesco PLC.6...... Armstrong, Tim.12 ...... Hawrami, Ashti.26 ...... Odum, Marvin E..6 ...... General Electric.32 ...... Omdal, Trond.26 ...... the head of the Disney Channel, Rich McGuire” series in 2001, through gerness—to enlist the help of other mence this week. A company spokes- were 14,000 new cases of swine flu THE WALL STREET JOURNAL EUROPE (ISSN 0921-99) Mitsubishi UFJ Financial Teva Pharmaceuticals Bilal, Mazen.14 ...... Hodges, Mark.12 ...... Boulevard Brand Whitlock 87, 1200 Brussels, Belgium General Motors.36...... Oudéa, Frédéric.23 ...... “High School Musical” and “Han- Disney divisions in rolling out new woman declined to provide details in England during the last full week Group .2...... 8Industries.35 ...... Bradford, Joanne.12 ...... Holley, Darrell.27 ...... Ross, as the new chairman of its film Telephone: 32 2 741 1211 Fax: 32 2 741 1600 Panayi, Andreas.12 ...... on the delivery schedule but said of September, up from 9,000 the pre- GlaxoSmithKline.35 ...... Mizuho Financial Group Total SA .1...... 4Brooks, Jeff .12...... studio, two and a half weeks after nah Montana,” Mr. Ross has over- properties. SUBSCRIPTIONS, inquiries and address changes to: Iger, Robert .35...... Papasavvas, Thanos.3 ..... 6 GMAC Financial Services .2...... 8Toyota Motor.28 ...... Campi, Alessandro.3 ...... the abrupt departure of the studio’s seen the creation of numerous se- The movie studio under former shipments would be phased in to vious week, and 5,000 the week be- Telephone: +44 (0) 207 309 7799 .3...... 6 Ina, Shinichi .2...... 8Roman, David.12...... Calling time from 8am to 5.30pm GMT Morgan Stanley.24...... Tullow Oil.6...... Carson, Scott.11 ...... ries which have spun-off profitable Chairman Dick Cook had created a multiple destinations simulta- fore that, indicating rising infec- Jen, Stephen .36...... Ross, Rich .3...... 2 longtime chairman. E-mail: [email protected] Website: www.services.wsje.com Goldman Sachs Group 26 Newmont Mining.26 ...... UBS .2...... 7Chenault, Kenneth I..27 ... content for the company’s cable few cross-platform franchises, such neously. tions among school-age children fol- Advertising Sales worldwide through Dow Jones Kelly, Alfred F. Jr..27...... Schwarzenbauer, Peter . 12 Mr. Ross will be responsible for Google.1...... 2 Chung, James.35 ...... International. Frankfurt: 49 69 971428 0; London: 44 207 842 9600; Nomura Holdings.28 ...... Vattenfall.2...... 0 Sentamu, John.27 ...... reviving a movie studio that has suf- TV, radio, consumer products, re- as “Pirates of the Caribbean,” but it Glaxo and other big pharmaceuti- lowing the start of the academic Paris: 33 1 40 17 17 01 Harmony Gold Mining 26 Langley, Donna.32 ...... Novartis .3...... 5Vedanta.2...... 3Cipolotti, Piersilvio.3 ...... Shmuger, Marc.32 ...... fered from a string of weak box-of- corded music and live events divi- was far less successful than the ca- cal companies have raced to develop year. Printed in Belgium by Concentra Media N.V. Printed in Germany by Havas .1...... 2 Clayton, Bret.25 ...... Leahy, Terry .6...... Dogan Media Group / Hürriyet A.S. Branch Germany. Printed in Nutrisystem.26 ...... Vivendi .6...... Smith, Mike .27...... Hewlett-Packard.12...... Lee Bang Soo.35 ...... fice performances. Disney Studios sions. ble-television business. Mr. Ross’s a vaccine against H1N1 swine flu “It does suggest that during the Switzerland by Zehnder Print AG Wil. Printed in the United Kingdom by Oil & Natural Gas.6 ...... Volkswagen.12...... Condon, Tim.24 ...... Spencer, Robin.12 ...... Newsfax International Ltd., London. Printed in Italy by Telestampa Lee, Freda .3...... 5 has not consistently generated the “At one point, the Disney Chan- new purview includes Walt Disney ahead of a possible spread of the vi- summer months swine flu was sleep- Honda Motor.28 ...... PepsiCo .1...... 2Wal-Mart Stores ...... 6,26 Cook, Dick .3...... 2 Steel, Jim .2...... 6 Centro Italia s.r.l. Printed in Spain by Bermont S.A. Printed in Ireland Lewis, Kenneth ...... 27,36 kind of franchise properties the com- nel was only a means of exhibiting pictures, the Disney and Pixar anima- rus in the Northern Hemisphere this ing, not dead,” said Charles Stanley by Midland Web Printing Ltd. Printed in Israel by The Jerusalem Post HSBC Holdings.24 ...... Pfizer.2...... 6Walt Disney ...... 32,35 Feinberg, Kenneth.36 ...... Thomson, Stuart.36 ...... Group. Printed in Turkey by GLOBUS Dünya BasInevi. pany requires to feed its world-wide product that was made by other tion brands, Touchstone and a re- autumn and winter. Other drug mak- Intel.2...... 6Portsmouth Football William Morrison Ferrell, Will .32...... Linde, David .32...... Trauber, Steve.27 ...... analyst Jeremy Batstone-Carr. Registered as a newspaper at the Post Office. distribution network for movies, TV parts of the company,” Disney cently downsized Miramax, which ers developing swine flu vaccines in- GlaxoSmithKline's statement is “a Trademarks appearing herein are used under license from Dow Jones Ivanhoe Mines.25 ...... Club .1...... 2Supermarkets.6 ...... Fogelson, Adam.32 ...... Macken, John.25 ...... Turner, Adair.26 ...... & Co. © 2009 Dow Jones & Company All rights reserved. J Sainsbury.6 ...... Pre-Paid Legal Services Yahoo .1...... 2Foxall, Christopher.26 ...... Mathur, Sanjay.23 ...... Woodside, Dennis.12 ...... shows, consumer products and Chief Executive Robert Iger said in last week announced plans to re- clude Sanofi-Aventis SA, Novartis pretty timely announcement,” he Editeur responsable: Patience Wheatcroft M-17936-2003 J.C. Penney .12...... 2...... 6Zijin Mining Group.2 ..... 3 Frye, Douglas.33 ...... Mayer, Igal .12...... Yu, Peter .3...... 5 theme-park rides. an interview. “He turned the Dis- duce its staff and movie output. AG, AstraZeneca PLC’s MedImmune said. 34 WEDNESDAY, OCTOBER 7, 2009 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. WEDNESDAY, OCTOBER 7, 2009 3 TECHNOLOGY LEADING THE NEWS

Nikon's CoolPix, left, has a mini projector while Samsung’s DualView features two LCD Cameras with innovations viewing screens. Italian court to rule on premier’s immunity This extra characteristic lets you These two compact cameras also Nikon Coolpix offers take pictures and, by pressing a but- feature less obvious technical ad- In connection with that case, ton on the camera, project them vances that aren’t quite as eye-catch- Decision will affect prosecutors in Milan have also built-in projector; onto any nearby surface, in old- ing as a built-in projector or dual charged Mr. Berlusconi with corrup- school slideshow style. The pro- LCD screens. Each camera can cap- suspended cases tion for allegedly ordering the pay- Samsung’s 2 screens jected image can measure up to 40 ture photographs with over 12-mega- ment of more than $600,000 to his inches, growing or shrinking as you pixel resolutions, and the Nikon and against Berlusconi co-defendant, British lawyer David By Katherine Boehret walk away from or toward the sur- Samsung have 5x and 4.6x wide-an- In somewhat unusual fashion, Mills, allegedly in exchange for false By Stacy Meichtry face onto which the images are pro- gle zoom lenses, respectively. Both the Samsung requires a tiny mi- (Left to right) Nikon; Samsung testimony. In February, Mr. Mills At a glance, the most obvious jected. cameras have built-in automatic croSD memory card. The viewing was convicted of perjury and accept- physical improvements on today’s I also tried the $350 Samsung Du- scene-detecting capability, meaning screen on the back of the Samsung is When the Nikon’s projector isn't ROME—Italy’s Constitutional ing the bribe and sentenced to four digital cameras compared with alView TL225, which had two LCD they can analyze a scene to deter- a generous 3.5-inch touch LCD that in use, it functions like a regular cam- Court is expected to decide this week and half years in prison. Mr. Mills is those bought five years ago are slim- viewing screens, including one on mine which shooting mode would covers close to an entire side of the era-albeit an expensive one at $430. whether to uphold a law that shields appealing the conviction. A hearing mer size and larger LCD viewing the front side. This front screen lets work best. And they allow the user camera; the front-side LCD is 1.5 Nikon says this price is largely due Italian prime ministers from criminal in Mr. Mill’s appeals case is sched- screens. Other than the subjects of the photograph see to edit images directly on the cam- inches. to the cost of its built-in projector. prosecution, in a long-awaited ruling uled for later this week. Mr. Berlus- THE MOSSBERG that, they don’t how they look as the photo is being era like brightening an image or ro- I focused my testing on the Until now, most people who wanted that cuts to the heart of Italian Pre- coni denies ordering the payment, look a whole lot dif- captured, raising the concept of in- tating a photo. unique physical features of each cam- portable, mini projectors bought mier Silvio Berlusconi’s controversial Mr. Cipolotti said. SOLUTION ferent. But this stant gratification to a new level. The Nikon sticks to one tradi- era: the Nikon's built-in projector them as standalone products; for ex- dual role as the country’s leader and a Following an investigation in late week, I tested two The outward-facing LCD can also dis- tional 2.7-inch LCD screen with sepa- and the Samsung’s two LCD screens. ample, the Pico Pocket Projector powerful media mogul. 2007, prosecutors charged Mr. Ber- physical features that I’ve never play a smiley face or cartoon anima- rate buttons that control functions I tried them out over the course of a from Optoma Technology Inc. is If the bill is struck down , Mr. Ber- lusconi with “inciting corruption,” seen on digital cameras. tions to encourage children to smile. like menu, timer, deleting and play- week and used them in real-life situa- listed for $230 online at Best Buy. lusconi could find himself in a for allegedly seeking to influence I used the $430 Nikon Coolpix It also can be used to display a tim- back. And, like many digicams, it ac- tions including at a birthday party I took the Nikon Coolpix S1000pj thicket of legal trouble, ranging the votes of left-leaning senators. S1000pj, which has a mini projector er’s countdown clock so you know ex- cepts a SecureDigital (SD) memory and at the Army 10-Miler, an annual along to the Army 10-Miler, captur- from criminal trials relating to his That investigation has also been sus- built right into the camera itself. actly when the photo will be taken. card. run in Washington, D.C. ing photos of runners as they ran media empire to a corruption inves- pended under the immunity law. Mr. near the National Mall in Washing- tigation stemming from his career Berlusconi denies the charge, Mr. Ci- Agence France-Presse/Getty Images ton. Later on, while I waited with in politics. polotti said, describing the allega- hundreds of people to get on the D.C. Mr. Berlusconi has long denied From left, Niccolo Ghedini, Piero Longo and Gaetano Pecorella, lawyers for Italian Prime Minister Silvio Berlusconi, are seen at tion as “science fiction. Metro subway system, a friend and I all the charges leveled against him. a session of Italy's Constitutional Court in Rome on Tuesday to review a law shielding some elected officials from prosecution. “The case is pure politics,” Mr. Ci- looked through photos from the day The immunity law was one of the polotti said, adding that all of the by projecting the camera's images first bills his government pushed proceedings against Mr. Berlusconi onto a concrete wall. At first, pass- through Parliament after he started pending against the premier. Mr. On Tuesday, lawyers represent- “The premier is not getting spe- “are bound to start up again” if he ersby thought the slideshow images his third term as prime minister in Berlusconi faces one criminal trial ing Mr. Berlusconi and the Italian cial treatment. He’s getting a slight loses his immunity. WE DELIVER were put there by the race organiz- April 2008, giving him a respite on charges of fraud and false ac- government delivered arguments postponement to allow him to exer- Mr. Cipolotti said the total ers, and they commented about how from legal battles. Both chambers of counting stemming from his role as before the Constitutional Court. cise the mandate given to him by the charges in every pending investiga- neat it was that the race images al- Parliament passed the law in July owner of private broadcaster Medi- Glauco Nori, a lawyer for the govern- people,” said Mr. Cipolotti. tion and trial against Mr. Berlusconi ready were posted for all to see. 2008, but it was subsequently chal- aset SpA, and a second criminal trial ment, argued that drawn-out legal The suspended case involving could result in a maximum total The D.C. Metro was an ideal spot lenged by Italian prosecutors who on charges of bribing one of the wit- proceedings could distract Mr. Ber- fraud and false accounting charges prison sentence of up to 21 years, to use the Nikon's projector because questioned its constitutionality. nesses in the Mediaset-related trial. lusconi from his duties as prime min- relates to arrangements by Mr. Ber- though any penalties that might THE WORLD of its low light and white concrete Mr. Berlusconi is unlikely to step Separately, Milan magistrates are in- ister. Niccolo Ghedini, Mr. Berlusco- lusconi to buy film rights in the eventually be leveled against the walls. Outdoors, the projected im- down if his legal woes are revived, vestigating whether Mr. Berlusconi ni’s personal lawyer, argued that Mr. 1990s on behalf of Mediaset. Mr. Ber- premier are unlikely to reach the ages weren’t quite as easy to see. I his lawyers and political allies say. allegedly corrupted left-leaning sen- Berlusconi’s duties as prime minis- lusconi has long denied and contin- maximum level. also used the projector in a house Polls show that nearly half of Italian ators in early 2008. Mr. Berlusconi ter risked infringing on his right to ues to deny both charges in that —Margherita Stancati and in my office, setting it on a table voters support him, and Italy’s cen- denies all the fraud, false account- defend himself in court. case, Mr. Cipolotti said. contributed to this article. TO YOU and turning off the lights for the best ter-left opposition is currently with- ing and corruption charges against view. A tiny remote comes with the out clear leadership. How- him, said Piersilvio Cipo- camera if you want to sit back and ever, Mr. Berlusconi is lotti, one of his lawyers, in Subscribe to The Wall Street Journal Europe Print give your friends and family a slide- smarting from five months an interview. All three of show. Videos taken with the camera of intense scrutiny of his these proceedings have and Online for just €2.94 a week also will play in video format. private life, and the specter have been suspended under The $350 Samsung DualView of criminal prosecution the immunity law. The Journal Europe’s subscription package includes TL225 is black with an accent color could put further strain on For decades Italian poli- delivery of the print edition every business day to your that comes in purple or orange. Its his ability to govern, some ticians enjoyed immunity front-side LCD screen isn’t visible analysts say. from criminal investiga- home or office as well as full access to WSJ.com - the when the camera is turned off, mak- “He’ll be forced to di- tions, but the shield was World’s most popular newssite. All for just €2.94 a week! ing for a surprising experience when vide his time between gov- eliminated in the early you take pictures of friends who can erning and the courtroom,” 1990s amid public outrage With each award suddenly see themselves. said Alessandro Campi, di- over the “Clean Hands” Read the Print edition every weekday and keep up with A similar but slightly lower qual- rector of the right-wing Silvio Berlusconi bribery scandals that even- the latest developments throughout the day on WSJ.com ity and less expensive version of this think tank Fare Futuro and tually brought down Italy’s camera is available in the $300 Sam- a political scientist at the University reigning political establishment. we recognize the on your desktop or your mobile. sung DualView TL220. This camera’s of Perugia. In 2003, Mr. Berlusconi first at- back LCD screen is a half-inch During his 15 years in politics, tempted to erect a legal shield for top You will also receive our quarterly lifestyle magazine smaller than the TL225’s and not Mr. Berlusconi has been beset by officials including the sitting prime WSJ. and Special Reports throughout the year. nearly as bright. Other notable dif- criminal investigations, indict- minister, the president and the heads true winners. ferences include the TL220’s plastic ments and trials on charges ranging of the lower and upper houses of Par- casing compared with the TL225’s from false accounting to corruption. liament, during their term in office. To subscribe visit www.services.wsje.com/AW09 or complete the form below aluminum. The premier has long denied all the The law was swiftly struck down by This front LCD performs various charges against him, arguing that he the Constitutional Court, which ar- functions in addition to showing peo- is the victim of left-leaning judges. gued that the law unfairly placed offi- ple what they look like. A scene In some of the cases, Mr. Berlusconi cials above the law. Weeks after re- called Children puts animated car- was acquitted at trial. In some oth- turning to office in the spring of toon clowns on the outer LCD in ers, the statute of limitations on the 2008, Mr. Berlusconi introduced a Our clients. hopes of making a child smile for the alleged crimes expired; because of new immunity law that, unlike its pre- business l europe l asia l world l analysis l tech l markets l comment know more camera. Another setting puts a that, he either wasn’t charged, or decessor, allowed top officeholders large, yellow smiley face on this LCD the charges were dropped when the to opt out of its protections. Months when the shutter button is pressed statute of limitations expired. later,prosecutors in Milan filed an ap- down halfway. And when the cam- However, there are three cases peal to the Constitutional Court. YES! Please start my subscription to The Wall Street Journal Europe with 12 months at the special low rate of era’s timer is set, the outer display €153 a year - that’s up to 60% OFF the standard rate and just €2.94 a week! OFFER CODE: APAH000AV counts down, showing "3, 2, 1" until the image is captured. Proud winner of Euromoney’s Awards for Excellence 2009 Charge my Credit Card: The downside to this display Polanski loses bid for freedom Title ______Full name ______screen is that it’s to the left of the Best Investment Bank ASSOCIATED PRESS Galli said the risk was too great for Address ______Visa Amex Eurocard MasterCard camera’s lens, so if you're taking a Best Wealth Management House close-up shot of someone, they will BERN, Switzerland—Roman Po- the government to accept bail or ______Card Number: appear in the photo like they’re lanski lost his first bid to win his free- other security measures in ex- When we receive an award the real winners are our clients. Our success depends Expiry _____ glancing away slightly. dom Tuesday as the Swiss Justice change for the release of the film- on understanding their needs and providing the solutions that enable them to Country ______Zip ______It’s too early to know whether the Ministry rejected an appeal by the maker,who is wanted by U.S. author- 76-year-old to be immediately re- ities for raping a 13-year-old girl in thrive. We are proud to be recognized with these awards but the real reward Email ______Signature______Date______innovations in these cameras will catch on, or be viewed over time as leased from prison, an official said. 1977. Switzerland says there has is that our clients are winning. Telephone ______Invoice Me/My company expensive gimmicks. If these fea- Already locked in a Zurich cell been an international warrant out www.credit-suisse.com tures become more common, hope- for the past dozen days, Mr. Polan- on him since 2005. POST THIS COUPON TODAY The Wall Street Journal Europe, Stapleton House, 29-33 Scrutton Street, London, EC2A 4HU. fully the prices will come down and ski learned he will remain incarcer- Mr. Polanski was apprehended OR CALL +44 (0) 207 309 7799 OR VISIT www.services.wsje.com/AW09 more consumers will be able to en- ated for an extended period. Sept. 26 as he arrived in Zurich to re- “We continue to be of the opin- ceive an award from a film festival. We may provide your information to third parties, including companies outside of the EU, in order to fulfill your subscription request, process data and provide you with promotional information from WSJE, joy them. its affiliates and other carefully selected companies. I do not wish to receive promotional materials from other carefully selected companies. I do not wish to receive promotional materials from WSJE or its ion that there is a high risk of flight,” In Paris, Mr. Polanski’s lawyers said affiliates. Hand delivery subject to confirmation by local distributor. Offer only open to new subscribers. Please allow up to 2 weeks for delivery to commence. Edited by Walter S. Mossberg. said ministry spokesman Folco they will focus on convincing the © 2009 Dow Jones & Company Inc. All rights reserved Email [email protected] Galli, explaining the decision. Mr. court to free Mr. Polanski. 4 WEDNESDAY, OCTOBER 7, 2009 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. WEDNESDAY, OCTOBER 7, 2009 33 LEADING THE NEWS THE PROPERTY REPORT Turkey and Armenia near friendship pact Property agents rethink long-term plans FirstService Real Estate Advisers, a collapsed, agencies began withdraw- Erdogan says deal Colliers CRE gains unit of First Service Corp. FirstSer- Recession hits ing from the hardest-hit markets out- vice will invest £8.9 million and will Revenue at top European property firms slides with falling demand side the U.K., such as Spain, Russia, will come Saturday; a strategic investor; own 29.99% of Colliers CRE’s en- Percent European Eastern Europe and the U.S. King larged share capital after the trans- Company Revenue, in millions change staff** Sturge, for example, said this week a statue’s travails DTZ backs off U.S. action. The rest of the shares will be that it is liquidating its Spanish busi- CB Richard Ellis* 2009 £579 –12% 4,800 taken up by institutional investors 2008 657 ness. More than 1,500 jobs have Turkey dropped a key condition By William Boston and pension funds. been shed among U.K. agencies BNP Paribas 552 65 3,500 to signing a protocol on Saturday SPECIAL TO THE WSJ FirstService, a Seattle-based alone. Real Estate 334 that would reopen its border with Colliers CRE PLC, a large Euro- property services company, will The downturn is prompting agen- Armenia and establish diplomatic pean commercial property broker- have two seats on the Colliers CRE Jones Lang LaSalle 540 3 4,200 cies to rethink their long-term plans. relations between the two nations, age, is getting clobbered by declin- board and will “invest heavily” in di- 525 DTZ’s profits were decimated by divided for generations by a dispute ing revenue and is scrambling to versifying Colliers CRE’s services Savills 382 –20 4,211 the impact of the crisis; the com- over genocide. raise new capital, a sign of how the for corporate clients. FirstService 480 pany had to undergo a major restruc- slowdown in sales and leasing trans- plans to use the company as a step- turing. Bob Rickert, chief operating DTZ 320 –10 n/a By Marc Champion in Istanbul actions is hurting real-estate ser- ping stone for further expansion in 356 officer and chief financial officer at and Nicholas Birch vice and brokerage businesses. Europe, according to Douglas Frye, DTZ, said that as the crisis set in, the Cushman & Wakefield 243 –14 2,090 in Kars, Turkey Colliers, the London-based Euro- FirstService chief executive and 282 company took a “clinical view” of its president of global operations. operations and has begun to rede- pean affiliate of Colliers Interna- 208 Prime Minister Recep Tayyip Er- “A lot of smaller players don’t Knight Frank –23 1,791 tional, on Tuesday reported a £9.5 271 sign its global strategy. The U.S. mar- dogan of Turkey said in an inter- million ($15.1 million) loss and 32% have the ability to provide the ser- ket is no longer a priority. DTZ also is view with The Wall Street Journal decline in revenue to £27 million for vices that global customers need,” King Sturge 160 –22 1,730 closing its Russian business and will that the signing wasn’t dependent the first half of 2009. Colliers Mr. Frye said. “Consolidation will 206 work through a licensed franchise in- on progress at talks to be held in blamed the continued flow of red ink continue because firms need capital Colliers CRE† 78 –34 884 stead. Moldova this week between the on the “virtual standstill in transac- or they need the services and a distri- 118 Cushman & Wakefield has in- leaders of Armenia and Azerbaijan tional activity” in property markets. bution system that a large corpora- *Figures are for Europe, Middle East and Africa vested in a property-management over their territorial conflict in Like many of the property own- tion like ours can provide.” **Own staff, not staff in associated or affiliated offices company in Germany, part of the Nicholas Birch for The Wall Street Journal (2) †Excluding Colliers International network Nagorno Karabakh. ers it serves, Colliers CRE has strug- Based on revenue, Colliers CRE Source: Estates Gazette winding down of liquidated proper- It was because of Armenia’s ef- An uncompleted monument to Turkish-Armenian friendship looms over Kars, above, in eastern Turkey. A monuments commission has ordered that the statue, built gled to cut costs to make up for de- ranks ninth among European ties that belonged to the Dawnay fective occupation of Nagorno Kara- when Naif Alibeyoglu, right, was mayor, be torn down because it was built without planning permission. The case is now in the central government’s hands. clining revenue and to raise cash to agents, an industry that is domi- gan expanding internationally dur- Since the 1980s, some of the U.K. Day group, which became insolvent bakh, an ethnic Armenian enclave service looming debt. nated by global players such as CB Ri- ing the boom years, such as Paris- agencies have sought growth by ex- last year. Cushman also is launching in Azerbaijan, that Turkey closed The company announced Tues- chard Ellis Inc., Jones Lang LaSalle based BNP Paribas SA’s BNP Paribas panding outside their home market a Œ300 million European property the border in 1993. An earlier at- between Turkey and Armenia—re- Turkey and Armenia has strong day, some 20% of the city’s popula- Mr. Alibeyoglu says he planned day that it will issue 100 million new Inc. and Cushman & Wakefield Inc. Real Estate, Savills PLC, DTZ Hold- into the rest of Europe and into Asia fund with the pension fund Scottish tempt to sign the protocol in April main linked, and that a positive out- backing from the U.S. and the Euro- tion are ethnic Azerbaijanis, who the monument as a counterweight ordinary shares and raise £20 mil- These face competition from a grow- ings PLC, Knight Frank LLP and and the U.S. But as the financial cri- Widows. It is expected to launch in stalled when Mr. Erdogan said it come in Moldova would help over- pean Union. They hope the change consider opening the border while to a memorial in Yerevan to the 1915 lion from a group of investors led by ing number of regional firms that be- King Sturge International LLP. sis hit, and global property markets the first quarter of 2010. could go forward only if the Kara- all. Turkish officials have continued could trigger a virtuous cycle, open- Armenia remains in control of a massacres and a statue in the bakh conflict was resolved first. to indicate the border could take ing up and stabilizing a region that fifth of Azerbaijan’s territory a be- nearby Turkish town of Igdir, close “The agreement will be signed longer to open than the three is increasingly important for oil trayal. to Mount Ararat. The Igdir monu- on Oct. 10. It doesn’t have anything months set out in the three-page and gas transit and last year saw Sculptor Mehmet Aksoy says he ment commemorates a much to do with what happens in Mold- protocol. war between Russia and Georgia. had to abandon his plan to run wa- smaller number of Turks who were BUSINESS REAL ESTATE ova,” said Mr. Erdogan, speaking in The Turkish leader said the only In addition to eventually open- ter down the statues to pool as killed by ethnic Armenian militias Istanbul on Sunday. obstacle to signing the deal on Sat- ing the border and establishing dip- tears, because nationalists com- around the same time. The travails of a large concrete urday would come if Armenia seeks lomatic relations, the protocol plained these would be tears of Ar- Turkey and Armenia are “like AUCTIONS INVESTMENT PROPERTIES monument to unity between the to alter the text. “This is perhaps would also recognize the current menian rejoicing at reclaiming terri- two neighbours who do not know two peoples, built last year in the the most important point—that Ar- frontier. It would set up a joint com- tory. Indeed, one complaint of na- each other,” Mr. Alibeyoglu says. “Is Turkish border town of Kars, show menia should not allow its policies mission to review issues of history, tionalist opponents of the protocol he a terrorist? A mafioso? We why a true rapprochement is prov- to be taken hostage by the Arme- likely to include the 1915 massacres. in Armenia is that the treaty’s recog- needed to break the ice.” ing so hard to pull off and could yet nian diaspora,” Mr. Erdogan said. Turkey says they were collateral nition of current borders would pre- 
  
        But Mr. Alibeyoglu was running
      

    MAKE GREAT derail. The statue of two 30-meter Much of Armenia’s large diaspora deaths during what amounted to vent any future claim to the swathe ahead of his own party, Mr. Er-   
     tall human figures, standing face to opposes the protocol. civil war during World War I. of Eastern Turkey that Armenia dogan’s ruling Justice and Develop-
  face on a hill above the city, is incom- A spokesman for Armenia Presi- Mr. Alibeyoglu, the former Kars won in a 1920 treaty, only to lose it ment party, or AKP.The government                CONNECTIONS plete: A giant hand that would join dent Serzh Sargsyan declined to mayor, worked hard to improve rela- again in the 1921 Treaty of Kars be- began secret talks with Armenia two         the figures was never attached. It comment on whether Armenia tions between his city—a former Ar- tween Russia and Turkey. years ago, and relations really only     IN EUROPE. lies abandoned on the gravel below. would seek changes to the protocol. menian capital that changed hands “Why is one figure standing with took off in September 2008, when                     The monument is now under threat He said the government would and populations several times over its head bowed, as if ashamed?” Turkey’s president went to watch !             of destruction. make a statement on “steps” con- centuries—and its natural hinter- asks Oktay Aktas, an ethnic Azeri the Turkish football team playing Ar- "     THE WALL STREET “Small-minded people blocked cerning the protocol soon. land, the Caucasus. He invited Arme- and local head of the Nationalist Ac- menia in Yerevan. He was the first   the monument and they will block Mr. Sargsyan has spent the week nian, Azeri and Georgian artists to tion Party, or MHP, who wants the Turkish leader ever to visit Arme-  JOURNAL EUROPE. the peace process too,” says Naif Ali- on a multination tour to explain his festivals, signed twinning agree- statue torn down. “Turkey has noth- nia. Mr. Sargsyan is due to close the    !"# beyoglu, who had the statue built position to diaspora groups, some ments with cities across the region ing to be ashamed of.” circle by attending the return match when he was mayor of Kars. His 10 of which have protested against it. and, in 2004, gathered 50,000 signa- In fact, the two figures in the in Turkey next week. years in office ended in March. “You They believe it will be used by Tur- tures for a petition demanding the monument stand ramrod straight. Mr. Alibeyoglu failed to get back- wait and see, [the deal] will end up key to reduce international pres- opening of the Turkish-Armenian Nationalists on the other side of ing for his projects and was shunted
     
 INVESTMENT PROPERTIES like my statue: a statue without sure on it to recognize as genocide border. the border have taken to the streets aside by the AKP in the run-up to

            hands.” the 1915 slaughter of up to 1.5 mil- Kars would stand to benefit to protest against the pact with Tur- municipal elections this year. When
   
       The parliaments of Armenia and lion ethnic Armenians in what was from the ability to trade across a key. “Turkey will cite the protocol Mr. Aktas applied to Turkey’s Com-
    
         Turkey need to ratify the protocol then the Ottoman Empire. Mr. Sarg- border 40 kilometers away by train and proceed with its efforts to re- mission for Monuments to get con-          ! "     for it to take force, something Mr. syan visited Paris, New York, Los An- and truck. Currently, traders must write history,” and deny the geno- struction stopped, on the basis that  
    !" Erdogan said he couldn’t guaran- geles and, on Tuesday, Beirut, drive hundreds of kilometers via cide, said Vartan Oksanian, a a viewing platform for the monu-
      #   $  %   N.W. PENNSYLVANIA tee, as parliamentarians in Ankara where 2000 Armenians turned out Georgia. former Armenian foreign minister ment was built without planning Unique 3 in 1 land investment would have a free vote in a secret waving banners such as “we will not But history has created deep sus- from the nationalist Dashnak party permission, the commission or- 165 acres mineral rights in Marcellus shale ballot. forget,” according to news agency picions. When Russia took over in a recent speech. He called for the dered work the statue to be demol- To advertise Mr. Erdogan also said the two reports. His last stop will be in Rus- Kars in the 19th century, many Ar- clause on the joint history commis- ished. Its fate awaits a final deci- VACANT LAND zone processes—a resolution of the Kara- sia. menians returned, only to be driven sion and on recognition of the bor- sion from the central government 41 acres Black Cherry timber all Emma Balogun bakh conflict and rapprochement The rapprochement between out again during World War I. To- der to be removed from the text. in Ankara. Residentially zoned with all utilities on sight Advertising Sales Executive Northwest Pennsylvania The Wall Street Journal Europe $ %&' $ alleghenyoutdoors.com (  ) *++ ) & 814-598-1354 +44 20 7842 9608 (direct) IMF idea flawed, Malaysia argues, but plan won’t affect reserves ,-  ./ 01+ Where Real Estate +44 20 7842 9650 (fax) By Bob Davis gues, nations would have less incen- building a trade surplus, which gov- that, it’s beyond the control of a many in the country. “We want our tive to build up foreign-currency re- ernments can more easily regulate. small country like Malaysia.” Ms. voice to be heard,” she said, adding
            Professionals [email protected] ISTANBUL—Malaysia’s central serves as a kind of insurance. If coun- “They have the wrong percep- Zeti said Malaysia was weathering that perhaps the G-20 and FSB could             UNITED STATES banker, Zeti Akhtar Aziz, said that tries reduced their reserves, they tion” that the accumulation of re- the economic crisis reasonably well, “engage with regional groups.”              Conduct Business the country’s foreign-currency re- would have more money to spend to serves is from trade surpluses, said thanks in part to fiscal stimulus. Ms. Zeti said the financial crisis            build their economies. Ms. Zeti in an interview. “It looks serves wouldn’t be affected under a She said the country shouldn’t hadn’t thrown Malaysia off its plan              proposal for the International Mone- Ms. Zeti said that the flaw in the like our reserves are very high, but a start withdrawing support until it to award seven new banking li-
 Call: 44-20-7842-9600 tary Fund to become a kind of global IMF’s reasoning is that reserves, at significant part is short-term [capi- saw a turnaround in private invest- censes to foreigners—the first such                 
       central bank. least in Malaysia’s case, come from tal] inflows that could reverse.” Ma- ment. “We have to see a private sector- award in 40 years—by year-end.        !      "  #
   or 49-69-971-4280 IMF Managing Director Domin- foreign capital inflows, which vary laysia’s reserves are about $90 bil- led recovery that’s benefiting from Two licenses are for Islamic banks,   $          " 
    ique Strauss-Kahn has used the from year to year. The IMF seems to lion, she said, down from $120 bil- more than fiscal stimulus,” she said. the other five for traditional ones.      
           fund’s annual meeting to suggest think, she said, that reserves of coun- lion in 2008. Malaysia, which has grown rap- Separately, the IMF has granted       ! "#! making the IMF an international tries like Malaysia stem from a pol- “A certain level of reserves is im- idly for 30 years, isn’t a member of Iraq $5 billion to support the govern-
  


     lender of last resort. If the IMF had icy of building a trade surplus by un- portant,” said Ms. Zeti, governor of the Group of 20 nations or the Finan- ment's budget, Iraqi Finance Minis- sufficient funds to lend widely, he ar- dervaluing the local currency and Bank Negara Malaysia. “Beyond cial Stability Board, which rankles ter Baker al-Zubaidy said. 32 WEDNESDAY, OCTOBER 7, 2009 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. WEDNESDAY, OCTOBER 7, 2009 5 MARKETPLACE LEADING THE NEWS Cameron faces challenge to maintain lead Crusader battles murk in U.K. lending Conservative leader needs to convince U.K. he can reduce record debt without hampering economic recovery

Chrissie Maher begins new chapter in lifelong drive for plain English, focusing on scourge of financial jargon By Alistair MacDonald lar government, but he hasn’t those polled believing the party has done more than that,” said John Voting conservative changed under Mr. Cameron. By Sara Schaefer Muñoz AnRBS spokesman acknowledged when the government agreed to re- Britain’s opposition Conserva- Curtice, professor of politics at The last time the Conservatives Polls show that support for the Conservatives is currently as much to do with thatthewordinginthemailingsentto write thousands of forms. tive Party and its leader, David Cam- the University of Strathclyde. won an election, in 1992, a recent dislike for Labour as approval for the Tories and the impact of a young NEW MILLS, England—A few Ms. Maher “was not as clear as it The group became known for its eron, are meeting this week with a “They need to come out of this con- census had shown that 6% of Eng- charismatic leader, David Cameron. months ago, 71-year-old Chrissie Ma- might have been,” and that as a result “Golden Bull” awards for the worst problem they haven’t had in years: ference able to show the nation land, the party’s stronghold, was her got a mailing from her bank titled of her letter, the bank is taking steps examples of official jargon. Past win- how to protect a huge lead that has what a future Conservative govern- A vote against Labour The Cameron effect nonwhite. The Office of National Sta- “PersonalandPrivateBanking—Keep- to improve the clarity of such pam- ners have included a definition from many convinced the Tories will re- ment will mean,” he said. You would vote Conservative if there was How important have David Cameron's tistic estimates that, by 2007, that ing You Informed.” Baffled by its bliz- phlets. the U.K.’s financial-services watch- turn to power for the first time On Tuesday, the shadow finance an election tomorrow because: performance as Conservative leader been a had doubled to 12%. The party has zardoftermssuchas“accountfacility ButMs.Mahersaysspecificregula- dog that read, “An unsolicited real since 1997. minister George Osborne attempted factor in your decision about how to vote? typically struggled to win minority limit,” Ms. Maher replied in simpler tion is needed. Earlier this year, she time qualifying credit promotion is Mr. Cameron is increasingly seen to address what the Tories would do You feel positive Not applicable wouldn't votes, with Labour polling 70% of language. wrote to Prime Minister Gordon a real time qualifying credit promo- as the U.K.’s prime minister in wait- to cut Britain’s record debt load. But A bit of both about Conservatives vote or don’t know Important the nonwhite vote in 1997 and the 39% 32% 5% 61% “The leaflet needs much more Brown urging that regulatory bodies tion which is not a solicited real ing. His party has a big ad- his promises of a one-year rest split between the Tories and thought if it is to be understood by such as Britain’s Financial Services time qualifying credit promotion.” vantage over the ruling La- pay freeze for most public- other parties. Likewise on gender, in yourcustomers,”shesaidinaletterto Authority establish standards of Another winner: a sign at Gatwick bour Party in opinion polls sector workers and an the last election in 2005, both par- Royal Bank of Scotland Group PLC. “plain English” for banks and busi- Airport saying “Passenger shoe re- and his incumbent oppo- early increase in the retire- ties attracted 34% of male voters, “As it stands, it should be renamed nesses, and fine them for “churning patriation area only.” nent, Gordon Brown, is fal- ment age for state pen- but 38% of women voted for Labour ‘Keeping You Confused.’ ” out…incomprehensible gobbledy- This year, a front-runner is a tering ahead of elections sions, may do little to dis- and only 32% for the Tories. After critiquing the pamphlet’s gook.” A spokesman for Mr. Brown’s 102-word sentence issued by a po- due to be held by June. pel a view that the Tories “We have had a massive moun- “tortuousandambiguoussentences,” office declined to comment on the lice chiefs association containing At the Conservative are “constrained by a politi- tain to climb and there is still a long she redrafted it, changing terms like prime minister’s correspondence. phrases such as “authentic answer- Party annual conference in cal narrative that paints You feel negative Unimportant way to go,” said Wilfred Emmanuel- “maximum debit balance” to “the The U.S. Securities and Exchange ability” and “amorphous chal- Manchester, Mr. Cameron them as careless cutters of about Labour 35% Jones, a Conservative candidate in most that can be owed.” Commission codified good writing in lenges.” is aiming not to blow the public services,” says Ian 29% southwest England who arrived in RBS may have picked the wrong 1998 with its Securities Act Rule “Amorphous challenges—is that lead. He is detailing plans Mulheirn, a director at Lon- the U.K. from Jamaica as a child and woman to target with financial 421(d)—or in plain English, the “Plain wrestling with a jellyfish, maybe?” for containing the U.K.’s big don-based policy research Note: Figures don’t add up because of rounding. The poll was conducted by interviewing a random sample sells farm produce under the name David Cameron of 1,506 adults aged 18+ by telephone between Sept. 11th, 2009 and Sept. 13th, 2009. mumbo jumbo. Ms. Maher is the English Rule”—which applies to the the Web site asks. budget deficit; selling the group the Social Market Source: Populus of the Black Farmer. founder of the Plain English Cam- cover page for a prospectus. The rule Soon after founding the cam- public on what he calls a modern Foundation. Mr. Cameron faces another prob- paign, a 30-year-old group whose outlines six principles for good writ- paign, Ms. Maher hired a team of edi- and more diverse party; and trying As for the risk of complacency, lem: the sheer size of Labour’s in- stated goal is to stem “the ever-grow- ing,includingusingthe“activevoice” tors and launched a consulting and to prevent his party’s candidates Mr. Cameron told delegates on Mon- the next morning, if [Labour MP] age as being one of white, privately cumbent advantage. Because the ingtideofconfusingandpompouslan- and not using “multiple negatives.” training service for businesses. Prof- from growing complacent. day: “This is not some week of cele- Phil Hope has beaten me, and say I educated men. Conservatives were defeated guage” that “takes away our demo- In July, Ms. Maher’s group testi- its go to fund the group’s advocacy ac- On the policy front, Mr. Cameron bration.” To that end, candidates lost because I took the foot off the Indeed, the Conservative slate— heavily in the last election, winning cratic rights.” fied before a Parliament committee tivities. Ms. Maher lives on her pen- has spent months highlighting the have been told by party officials gas,” said Louise Bagshawe, a Con- including new candidates and sit- 198 seats in Parliament against 356 holding a public hearing on language servative candidate and a novelist Over the years, Ms. Maher and her sion and salary from the campaign’s U.K.’s record debt load; now he must that they need to watch what they ting members of Parliament—will for Labour, a large slice of these can- group have battled police use in government. Mem- training and consulting activities. say to the press and behave them- whose “chick-lit” books appear in be 21% female, with 4.7% of candi- convince Britain he can reduce it didates must win to avoid a so- agencies, expansion plan- bers of the public submitted Ms. Maher also fields questions selves at the bar, several of those U.K. best-seller charts. Ms. Bag- dates drawn from ethnic minorities. called hung Parliament in which no without hampering the economic re- ners at Heathrow Airport, complaints over what one in the small town of New Mills. candidates say. shawe and many other candidates This compares with 28% of Labour’s party has a majority and parties Plain English Campaign covery. And he must present a and the “frequently bizarre called “eye-wateringly ar- About a week ago, a 16-year-old Haunted by three successive have been in full election mode slate being female and 6% from eth- need to form alliances with other language” of the European cane”languagesuchas“con- Ms. Maher in 1979, at the start of the Plain English Campaign. rode his bicycle up to her farmhouse united party front just as some old general election defeats and the since the summer. nic minorities. parties to push through their agen- Union. (At issue: phrases ventional procurement” because he wanted to open a check- divisions—over questions like how large lead that a celebratory La- Mr. Cameron has made strides in The disparity leaves the party das. To win a majority, the Tories such as “unlock clusters,” and “optimism bias” used to ing account but was thrown by integrated the U.K. should be with bour lost to Conservatives in 1992, broadening the party’s base, an ef- open to Labour criticism that Mr. need to hold on to every one of their “subsidiarity” and “sector- describe government finan- Collateralized debt obligations are ing at London Business School. But terms in the bank’s pamphlet such Europe—are re-emerging. this Tory generation is taking noth- fort that has been criticized as politi- Cameron’s “modern” Conservatives current seats and add an additional specific benchmarking.”) cial initiatives. Another la- commitments to repay debts that are he acknowledges that “there is as AER—or annual equivalent rate, “David Cameron has done ing for granted. cal correctness by some Tories. But are at heart the same party. A poll 117 constituencies. This would be Shehasblastedlocalgovern- mented the use of the word secured on assets.” something about banking and finan- which is an interest rate with annual enough to make the party accept- “Emotionally, I really do not in an increasingly diverse country, this week for the Times of London the biggest number of Tory gains at mentontheuseof“workless- “investment” when the gov- She has also put together a glos- cial services that goes deep to con- compound interest. able in an era of a deeply unpopu- want to look at myself in the mirror the party has yet to shake off the im- bears this out, with only 28% of a general election since 1931. ness” to refer to unemploy- ernmentmeans“spending.” sary of financial buzzwords including sumers’ sense of anxiety.” At a recent gathering for tea and ment and once attacked the While the clear-lan- “asset sweat” (making assets work Ms. Maher grew up poor and of- cookies before church, Ms. Maher presidentoftheU.K.Spelling Chrissie Maher guage campaign has worked harder and more efficiently). She was ten hungry in Liverpool and didn’t said, a woman came up to her wav- Society over his claim that over the years with banks initially mystified by the U.K. govern- learn to read until she attended ing a letter “with minuscule print” the apostrophe is “a waste of time.” andinsurancecompanies,itwasthefi- ment’s term “quantitative eas- night school at the age of 15. But she about her mortgage and asked for Three win Nobel in physics for breakthroughs in light Now a grandmother of 11 who nancialcrisisthatsentMs.Maherinto ing”—the central bank’s effort to put says her background motivated her help understanding it. Ms. Maher works out of a small farm in the hills the deep weeds of complex financial more money into the economy. to help ordinary people intimidated said it had so many footnotes, aster- By Gautam Naik Smith and Boyle are Americans; Dr. outside Manchester, Ms. Maher is fo- terms. Her team has sought to crack “It sounded like something heavy by high-level language. “I know isks and crosses, “it looked like a Boyle also holds Canadian citizenship. cusingonthecurrentscourgeoffinan- the meaning of tough nuts like collat- was moving, but what and where?” what it’s like to feel isolated because game of snakes and ladders and you Three scientists who harnessed In 1966, Dr. Kao, while working at cial jargon. eralized debt obligations, or CDOs, she says. of words,” she says. needed a magnifying glass.” the power of light in ways that Standard Telephones and Cables’ “Families are losing their homes seeking to break their code by isolat- Somepeoplethinkthefinancialin- She began campaigning for clear Some, she says, have given up on turned the Internet into a global phe- laboratory in Harlow, England, tack- because of jargon-filled credit agree- ing their elements: “We are not pre- dustry has been making a better ef- language in the early 1970s, when banks entirely: “One older lady I nomenon and launched the digital- led the problem of light loss in opti- ments,” says Ms. Maher, an energetic tendingthataPlainEnglishdefinition fortthanMs. Mahergives it credit for. she saw that impoverished people in know, she took her money and put it camera revolution were jointly cal fibers. Back then, messages presence in a crocheted sweater and of CDOs would have saved us from re- “I have observed institutions try- Liverpool were having trouble deci- in a plastic bag and buried it in the awarded the Nobel Prize in physics. could travel for 20 meters or so be- eyeglasses. “Language has been mis- cession,” Ms. Maher’s Web site says. ing very hard over the last 20 years to phering benefit forms. She formally garden.” Charles Kao, who was born in fore light began to be lost in the fi- used and has contributed to the eco- “This is the plain English attempt at avoidjargon,”saysChrisHigson,avis- started the campaign in 1979, and —T.W. Farnam contributed to this Shanghai and has both U.K. and U.S. ber available at the time. nomic disaster.” defining what is at the heart of CDOs: iting associate professor of account- achieved a success in the 1980s article. citizenship, received half the total Dr. Kao realized that the light prize money of $1.4 million. Dr. Kao loss was due to imperfections in the was lauded for a breakthrough that glass, not in the technology itself. led to fiber-optic cables, the thin He figured out a way to increase the glass threads that carry a vast chunk distance to 100 kilometers, which NBC Universal forces out co-chairmen of its movie studio of the world’s phone and data traffic. then opened the way to moving sig- The other half of the prize was nals over far greater distances. The By Lauren A.E. Schuker In another Hollywood personnel office performance, people close to and Spike Lee. She joined Universal comedy “Land of the Lost,” which is awarded to Willard Boyle and George first ultrapure fiber was made just

move Monday, Walt Disney Co. the studio say Universal is hoping in 2001, and since then has overseen expected to rack up a $70 million Smith of Bell Laboratories in Murray four years later, in 1970. Reuters NBC Universal on Monday forced named Rich Ross, longtime head of the duo will help ease tensions that some of the studio’s most successful loss. Hill, N.J., for work that led to the Today, fiber-optic cables make Charles Kao, left, Willard Boyle, center, and George Smith were awarded the Nobel Prize in physics Tuesday. out the co-chairmen of its movie stu- the Disney Channel, as chairman of have arisen among studio execu- films, including the surprise sum- “Love Happens,” starring Jenni- charge-coupled device. The CCD sen- up the circulatory system of the In- dio, which has had a recent string of its film studio. tives and filmmakers because of the mer 2008 blockbuster “Mamma fer Aniston, which has taken in an es- sor turns light into electrical signals ternet, transporting words, sound disappointments at the box office. Rumors of management changes poor performance of this year’s Mia!” timated $19 million since its Sept. 18 and eliminates the need for capturing and images from one side of the transformed photography.By adopt- bert Einstein won his physics Nobel and read out the signals in a large The shake-up comes amid negoti- at Universal have circulated for slate of movies. The leadership change will come release, is the latest in the studio’s images on film, a far more cumber- planet to the other in a split second. ing aspects of the photoelectric ef- in 1921—the two scientists designed number of pixels, or image points, in ations for a deal that could shift con- months and intensified after reports Mr.Fogelson is considered one of at a cost to the studio. In January, long losing streak. some and expensive approach. Drs. Drs. Boyle and Smith’s work fect—the breakthrough for which Al- an image sensor that could gather a short time. trol of NBC Universal from General emerged last week that GE had be- Universal’s best-liked and most Universal renewed lucrative employ- But Mr. Meyer said Monday’s Electric Co. to cable giant Comcast gun negotiations to sell Comcast a widely respected executives. He ment contracts for both Messrs. management change wasn’t about Corp. NBC Universal has television, 51% stake in a new company that came to Universal from Trimark Pic- Shmuger and Linde, after they the studio’s performance. “We are theme-park and film operations. would include NBC Universal and tures and became president of mar- achieved record performance for running our business as we have al- Ron Meyer, president of Univer- some of Comcast’s TV assets. If such keting in 2002. He gained respect the studio during the first two years ways run it, and it just felt like the France’s budget deficit almost doubles, as stimulus measures widen gap sal Studios, said Marc Shmuger and a deal is concluded, NBC Universal for pulling off challenging market- they had held their posts. right time for all of us to make a David Linde, who have stood at the could be in for more executive ing campaigns for films like “The This year, however, the studio change in leadership,” he said. By Geraldine Amiel amounted to Œ127.6 billion ($188.1 bil- ing stimulus measures, remains sta- rate tax receipts, unemployment is cit over the year amounted to Œ56.3 studio’s helm for more than three changes. 40-Year-Old Virgin ” and “Ray,” and failed to attract strong turnouts for Thepoorbusinessclimatehasac- lion), compared with a budget deficit ble on a yearly basis. “Lower tax re- likely to keep rising, further denting billion, representing 3.4% of the years, will be succeeded by two of its Mr. Fogelson, Universal Pictures’ helped to develop titles like “Ameri- adult dramas including “Duplicity,” celerated a number of senior staff PARIS—France’s budget deficit of Œ67.6 billion for the year-earlier pe- ceipts are rather the issue,” he said. tax revenue. country’s GDP,according to the Bud- longtime marketing and production new chairman, joined the studio in can Pie” and “Meet the Parents” into starring Julia Roberts, changes across Hollywood, which almost doubled from a year earlier, riod, the French Budget Ministry said. The French government has Last week, the government pre- get Ministry’s database. executives. 1998, and has run marketing and dis- some of the studio’s most important “Frost/Nixon,” directed by Ron has been hurt by declining DVD sales on increased spending from the Of the latest total, Œ26.4 billion is planned to pump around Œ26 billion sented France’s budget bill for 2010. It From a peak in 2010, France’s The studio’s head of marketing tribution there since October 2007. franchises. Howard, and “State of Play,” with and a tough market for financing. country’s stimulus measures and linked to the stimulus package, directly into the country’s economy, forecast a public deficit for this year budget deficit is then predicted to and distribution, Adam Fogelson, He spearheaded successful market- Ms. Langley, who has served as Russell Crowe. Also on Monday, Walt Disney Co. lower tax revenue as the economy while Œ60 billion is due to lower tax of which Œ18.2 billion had already of Œ141 billion, or 8.2% of the country’s narrow in the following years as the will take over as chairman of Uni- ing campaigns for hits including Universal’s president of production Universal had a surprise hit in named the longtime head of the Dis- emerges from recession, data for receipts as a result of the economy’s been injected between last fall and gross domestic product, from a previ- recovery gradually takes hold, reach- versal Pictures. Production presi- “Fast & Furious.” Ms. Langley since 2005, is known for her strong April with “Fast & Furious,” but its ney Channel, Rich Ross, as the new the January-to-August period deterioration, the ministry said. August 2009, a ministry spokesman ous forecast of a Œ104.4 billion deficit ing 6% of GDP in 2012 and 5% of GDP dent Donna Langley will become started at Universal in 2001 after a relationships with Hollywood tal- summer film slate was punctuated chairman of its film studio, succeed- showed Tuesday. “Spending is not the issue,” a Bud- said. Even though the improvement and an initial forecast of a Œ67 billion in 2013, still a long way from the 3% the studio’s co-chairman. Mr. Fogel- lengthy stint at New Line Cinema. ent, especially directors Michael by expensive flops like Mr. Apatow’s ing Dick Cook, who resigned During the January-to-August pe- get Ministry spokesman said. He of economic conditions could help deficit from 2009’s budget bill. threshold demanded by the Euro- son will report to Mr. Meyer. In addition to improving its box- Mann, Judd Apatow, Clint Eastwood “Funny People” and the Will Ferrell abruptly last month. riod, the French budget deficit added that current spending, exclud- French companies and boost corpo- In 2008, the French budget defi- pean Growth and Stability Pact. 6 WEDNESDAY, OCTOBER 7, 2009 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. WEDNESDAY, OCTOBER 7, 2009 31 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: 16 Major players & benchmarks including the U.K. LAST: 9731.25 s 131.50, or 1.37% Shell to increase YEAR TO DATE: s 954.86, or 10.9% Dow Jones Stoxx 50: Tuesday’s best and worst… Tesco posts modest profit gain North American OVER 52 WEEKS s 284.14, or 3.0% Market value, Previous in billions close, in STOCK PERFORMANCE High natural-gas drive Company Country Industry of US$ local currency Previous session 52-week Three-year 10000 Faster growth in Asia, greater volume in the U.K. provide solid, first-half sales increase Anglo Amer U.K. General Mining $44.9 21.00 7.64% 35.0% –11.9% Close By Russell Gold Low By Cecilie Rohwedder Rio Tinto U.K. General Mining 66.9 27.41 6.88 13.7 28.0 BNP Paribas S.A. France Banks 94.2 53.99 5.61 –18.8 –36.2 9500 And Kathy Sandler Looking overseas Royal Dutch Shell PLC plans to in- crease natural-gas production in ING Groep Netherlands Life Insurance 35.8 11.67 5.56 –18.6 –67.0 Tesco’s revenue by region for the British retailer Tesco PLC re- North America, said Marvin E. Odum, Intesa Sanpaolo Italy Banks 52.9 3.03 5.13 –13.7 –45.3 first half of 2009, in billions 9000 ported a modest first-half profit in- head of the company’s U.S. unit. crease, helped by fast growth in Asia £20 Though gas prices are low now, Tesco U.K. Food Rtlrs & Whlslrs $48.9 3.91 –0.18% –1.5 1.4 t and an upswing in its U.K. business. 50–day 8500 Shell believes long-term prices will Vodafone Grp U.K. Mobile Telecomms 129.7 1.40 –0.14 11.2 8.2 Earlier this year, sales growth at recover, justifying the company’s in- moving average Britain’s biggest retailer lagged be- 15 terest, Mr. Odum said. Astrazeneca U.K. Pharmaceuticals 64.4 27.83 0.02% 13.0 –15.6 hind aggressive price-cutting rivals. He said the growth in gas produc- SAP Germany Software 59.9 33.12 0.09 23.9 –18.0 8000 For the six months ended Aug. 29, 10 tion would come from the compa- France Telecom France Fixed Line Telecomms 70.6 18.08 0.25 –8.6 –2.6 however, Tesco’s sales rose 8.3% to ny’s deep-water discoveries in the £30.4 billion ($48.33 billion). Chief Gulf of Mexico as well as from giant 7500 Executive Terry Leahy said the com- 5 shale formations in western Can- ...And the rest of Europe’s blue chips 10 17 24 31 7 14 21 28 4 11 18 25 2 July Aug. Sept. pany’s U.K. sales growth had caught ada, the Rockies and the Gulf Coast. Latest, Latest, and was now ahead of rivals. 0.17 Market value, in local STOCK PERFORMANCE Market value, in local STOCK PERFORMANCE 0 Shell’s natural-gas production in 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 Mr. Leahy also said global econo- U.K. Asia Europe U.S. the U.S. fell to 1.05 billion cubic feet a mies have begun what he called a BHP Billiton 61.7 17.36 4.61% 59.7% 82.5% UniCredit 65.7 2.66 2.31% 11.8% –53.2% Source: the company day last year, down 9.5% from two U.K. (General Mining) Italy (Banks) DJIA component stocks “slow but steady” recovery. Shop- Customers shop in a Tesco supermarket in London. yearsearlier,according tocompany fil- Credit Suisse Grp 67.6 58.50 4.37 16.5 –23.2 Barclays 64.9 3.70 2.22 29.8 –46.5 Switzerland (Banks) U.K. (Banks) Volume, CHANGE pers are spending again on premium ings. Its Canadian production has been Stock Symbol in millions Latest Points Percentage products, such as organic foods and ers back to Tesco, the retailer said, sales in stores open at least a year one U.S. store a week, but the pace is flat. Still, North American natural gas Deutsche Bk 48.4 52.85 4.31 21.3 –46.7 E.ON 83.8 28.40 2.16 –16.0 –7.8 Germany (Banks) Germany (Multiutilities) AT&T T 13.20 $27.05 0.29 1.08% prepared meals, and returned to buy- but pushed down the value of their rose 3.1%, a figure excluding gaso- slower than originally planned and currently accounts for about 7.8% of Siemens 85.1 63.10 4.21 15.7 –6.1 HSBC Hldgs 192.5 7.02 1.78 –10.6 –20.2 Alcoa AA 19.80 13.90 0.48 3.58% ing nonfood items such as electron- purchases at the checkout. As a re- line and value-added sales tax. weighs on its bottom line. Shell’s global oil and gas production. Germany (Diversified Industrials) U.K. (Banks) AmExpress AXP 4.90 33.49 0.27 0.81% ics and clothing, he said. sult, Tesco acknowledged, its sales “This growth, and also the pattern “Trading losses reflect the fact North American gas production UBS 64.4 18.55 4.15 –4.4 –73.5 Deutsche Telekom 60.6 9.42 1.78 –17.7 –24.3 BankAm BAC 81.20 17.16 0.20 1.18% Switzerland (Banks) Germany (Mobile Telecomms) “We’re past the low point, things growth appears smaller than that of of trading we have seen so far dur- that Fresh & Easy has been built “could be much more than what Boeing BA 4.10 51.91 –0.37 –0.71% BASF 49.0 36.12 4.12 15.6 10.9 Iberdrola S.A. 51.3 6.62 1.61 –2.4 –24.0 are getting better,” Mr. Leahy said. competing stores in pound terms. ing the second half, confirm that with the necessary infrastructure we’re producing now,” Mr. Odum Germany (Commodity Chemicals) Spain (Conventional Electricity) Caterpillar CAT 5.30 51.74 0.99 1.95% “People have stopped Tesco’s main rivals— our growth rate has converged in place to support hundreds of said in an interview Monday. He de- AXA S.A. 57.5 18.68 4.10 –6.7 –39.4 Diageo 42.3 9.61 1.48 9.0 1.5 Chevron CVX 4.20 70.44 1.05 1.51% down-trading.” Asda, a unit of Wal-Mart with the wider industry,” Tesco stores and is currently therefore op- clined to say how much he expected France (Full Line Insurance) U.K. (Distillers & Vintners) CiscoSys CSCO 22.00 23.37 0.43 1.87% Tesco, based in Stores Inc., J Sainsbury said in a statement. erating with a high cost base rela- it to grow, however. BG Grp 62.9 11.03 4.06 27.5 67.6 GlaxoSmithKline 112.5 12.36 1.39 2.2 –15.2 CocaCola KO 5.50 54.46 0.66 1.23% U.K. (Integrated Oil & Gas) U.K. (Pharmaceuticals) Cheshunt near London, PLC and William Morrison Like other grocery chains, Tesco tive to the scale of the business,” Shell moved quickly to embrace Disney DIS 5.30 28.20 0.53 1.92% Banco Santander 134.3 11.17 3.91 6.0 –9.1 Assicurazioni Gen 41.9 18.26 1.39 –13.6 –32.0 said net profit in the six Supermarkets PLC—also is contending with a slowdown in Tesco said. the unconventional gas discoveries Spain (Banks) Italy (Full Line Insurance) DuPont DD 4.00 32.07 0.71 2.26% months through Aug. 29 increased the number of the rise of food prices. The fall in For future earnings growth, made by smaller, independent pro- Allianz SE 57.3 85.86 3.85 –0.1 –40.1 RWE 48.9 63.31 1.34 –4.8 –18.0 ExxonMobil XOM 11.30 68.67 1.09 1.61% rose 1.3% to £1.03 billion, re- cheaper products and cut- food inflation benefits shoppers, Tesco is planning to expand its bank- ducers earlier this decade. In 2007,it Germany (Full Line Insurance) Germany (Multiutilities) GenElec GE 49.40 16.20 0.37 2.34% flecting goodwill write- rate store brands on their EnCana Daimler 52.8 33.75 3.37 23.2 –15.3 GDF Suez 100.8 30.26 1.27 –8.8 –0.9 HewlettPk HPQ 8.50 46.84 0.77 1.66% but poses a challenge for retailers ing business, where profit margins joined with Calgary-based Germany (Automobiles) France (Multiutilities) offs. Profit before tax and shelves. But Mr. Leahy said HomeDpt HD 6.40 26.23 0.08 0.31% because lower checkout receipts re- are far higher than in grocery retail- Corp. to develop acreage in Louisi- ArcelorMittal 57.0 24.76 3.19 –11.1 –17.1 Nokia 54.2 9.82 1.24 –22.3 –37.7 Intel INTC 40.20 19.72 0.62 3.25% one-time items rose 8.6% Tesco outdid them, and duce sales and profits. ing. The company said it will con- ana’s Haynesville shale. Shell last Luxembourg (Iron & Steel) Finland (Telecomms Equipment) IBM IBM 3.50 121.38 1.63 1.36% to £1.57 billion during the therefore suffered slower In its fledgling U.S. business, sider buying banking assets if Euro- year paid $5.87 billion to acquire Duv- Banco Bilbao Viz 66.9 12.10 3.15 4.8 –34.9 Telefonica S.A. 134.2 19.34 1.10 16.0 41.0 period, from £1.45 billion sales growth in compari- Tesco lost £85 million in the first pean rules force state-aided banks ernay Oil Corp., a company that had Spain (Banks) Spain (Fixed Line Telecomms) JPMorgChas JPM 20.10 44.58 0.78 1.78% JohnsJohns JNJ 5.70 60.27 0.45 0.75% in the first half of last year. son. He said Tesco accepted half of its fiscal year. The retailer to divest parts of their business, but amassed 450,000 acres in western Al- ABB 47.0 20.74 3.08 18.2 24.1 Nestle S.A. 155.7 43.72 0.97 –4.9 –0.9 Terry Leahy Switzerland (Industrial Machinery) Switzerland (Food Products) KftFoods KFT 7.00 26.13 0.11 0.42% Tesco’s rebound comes the development because made several changes at its U.S. op- has no plans to acquire U.K.-based berta and British Columbia that ap- ENI 101.8 17.24 2.93 2.1 –26.8 Roche Hldg Part. Cert. 113.7 165.90 0.91 –5.2 –24.7 McDonalds MCD 3.40 57.42 0.81 1.43% a year after the grocery retailer volume sales, the number of goods eration, a chain of small grocery Northern Rock, said group finance pear promising for gas production. Italy (Integrated Oil & Gas) Switzerland (Pharmaceuticals) Merck MRK 7.60 32.48 0.71 2.23% launched a line of lower-priced shoppers bought, are increasing. stores called Fresh & Easy. It is re- director Laurie McIlwee. Shell has what Mr. Odum called Total S.A. 139.5 40.29 2.90 0.7 –22.5 Sanofi-Aventis S.A. 97.4 50.23 0.86 8.5 –27.4 France (Integrated Oil & Gas) France (Pharmaceuticals) Microsoft MSFT 25.40 25.07 0.43 1.75% products designed to keep reces- Tesco will keep selling the discount launching Fresh & Easy with a new On Tuesday, Tesco renamed its “a very significant land position” in Soc. Generale 47.9 53.69 2.85 –11.3 –54.6 L.M. Ericsson Tel B 30.4 70.50 0.71 33.8 –46.2 Pfizer PFE 32.90 16.84 0.44 2.68% sion-plagued shoppers from de- brands when economy improves but advertising campaign touting its personal finance business Tesco parts of North America where large France (Banks) Sweden (Telecomms Equipment) ProctGamb PG 5.00 56.93 0.25 0.44% fecting to discounters. will not add to them, Mr. Leahy said. product quality and competitive Bank, moving closer to becoming a amounts of natural gas is trapped in BP 181.2 5.50 2.80 23.0 –4.8 British Amer Tob 62.9 19.49 0.62 8.1 35.5 3M MMM 1.20 74.20 1.18 1.62% U.K. (Integrated Oil & Gas) U.K. (Tobacco) The cheaper goods lured consum- In the U.K, second-quarter prices. Tesco is still adding about full-service retail bank. dense rocks such as shale. TravelersCos TRV 2.70 49.51 0.52 1.06% Bayer 58.0 47.52 2.59 –5.2 17.6 Unilever 49.1 19.40 0.36 –2.8 –1.2 Germany (Specialty Chemicals) Netherlands (Food Products) UnitedTech UTX 1.90 61.66 1.23 2.04% Royal Dutch Shell A 101.9 19.48 2.39 –2.4 –24.8 Novartis 132.8 51.50 0.29 –15.0 –29.6 Verizon VZ 9.10 30.14 0.18 0.59% U.K. (Integrated Oil & Gas) Switzerland (Pharmaceuticals) WalMart WMT 10.20 49.40 0.34 0.69% 200 miles AFRICA Plaintiffs’ lawyer Sources: Dow Jones Indexes; WSJ Market Data Group Source: WSJ Market Data Group 200 km Exxon buys stake in Ghana oil field MALI By Russell Gold In afternoon New York trading, Ana- gic direction for Exxon. Over the last Area tells jury Vivendi of detail darko was up 6.1% to $65.41 and decade, the Texas behemoth has Exxon Mobil Corp. has agreed to Exxon was up 1.5% at $68.58. been reluctant to make any large Hedge funds Credit-default swaps: European companies buy a $4 billion stake in an oil field Also in New York, shares of Black- purchases, even as its holdings of IVORY misled the public 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 COAST Hedge Benchmark One week One month One quarter Year to date One year off the coast of Ghana, according to stone Group LP,a part-owner of Kos- cash and repurchased stock bal- By Chad Bray how much a seller demands to sell-protection from default on an issuer's debt. The snapshot below gives a Merger Arbitrage 0.44% 0.90% 1.9% 6.7% 7.3% people involved in the deal, as the mos along with private-equity firm looned. At midyear, it held $15.6 bil- sense which way the market was moving yesterday. credit Event Driven 0.44% 2.02% 5.4% 12.2% -7.2% Warburg Pincus GHANA global energy giant seeks a foothold , were up 6.1%. lion in cash, and the value of trea- France’s Vivendi SA and its man- Equity Market Neutral -0.34% -1.72% -2.3% -5.5% -9.9% in a major new oil-producing region. The oil industry has become in- sury shares it has bought back since agement repeatedly misled the pub- Equity Long/Short -0.48% 0.06% 2.5% 3.3% -4.5% The deal is Exxon’s first major creasingly optimistic about the pros- 2001 were worth $173.6 billion. lic about the company’s financial Showing the biggest improvement... And the most deterioration markets & *Estimates as of 10/05/09, after fees; Source: www.djhedgefundindexes.com purchase in a decade and appears to pects for oil production off the West The Ghana purchase suggests health before a liquidity crisis in CHANGE, in basis points CHANGE, in basis points highlight that the company believes African coast. This summer, a sepa- that Exxon is moving to replenish its 2002, a lawyer for Vivendi sharehold- Yesterday Yesterday Five-day 28-day Yesterday Yesterday Five-day 28-day CIR SpA CIE Industriali Riunite 418 –48 –22 –57 Allied Domecq 92 1 42 oil prices will rise over the long rate consortium announced a discov- oil reserves by building its portfolio Ivorian ers said Tuesday. dealmakers Seat Pagine Gialle SpA 1555 –40 109 –607 Danske Bk AS 77 2 5 –13 term. Some energy analysts have as- ery off Sierra Leone, leading ana- asset by asset, rather than by making Basin Inhisopeningstatementinaclass- Credit derivatives Daily Mail & Gen Tr 701 –32 –35 –87 BCO de Sabadell SA 150 2 3 –39 serted that weak demand for the lysts to speculate that the 1,100-kilo- a megadeal. Indeed, analysts say Ghana fields including action lawsuit against the company, Nielsen 622 –26 3 –56 Cable & Wireless 265 2 15 14 fuel can’t support even the current meter stretch between the two finds that Exxon, with its $325 billion mar- Jubilee and others ArthurN.AbbeysaidVivendimanage- Spreads on credit derivatives are one way the market rates Grohe Hldg Gmbh 1466 –21 89 –397 Aegon N.V. 170 2 20 –21 price of $70 a barrel. could be dotted with buried sands ket capitalization, may be too big al- Source: Anadarko ment portrayed the company as fi- creditworthiness. Regions that are treading in rough waters can Rhodia 518 –20 –13 –134 Smiths Gp 81 2 98 A spokesman for Exxon declined containing precious light crude oil. ready in the eyes of regulators to nancially healthy, but that internally, see spreads swing toward the maximum—and vice versa. Indexes Carlton Comms 477 –18 24 13 Nthn Rock 412 3 4 –18 to comment. People briefed on the Exxon’s entry amounts to a seal of swallow another large oil company. ural Gas Corp. were viewed as poten- management was concerned about below are for five-year swaps. Brit Awys 503 –16 11 –153 Shell Pete 57 3 67 deal said that while the parties have approval. “If Exxon Mobil likes this In addition to buying into the tial buyers for the Kosmos stake. potential liquidity problems. He also Markit iTraxx Indexes SPREAD RANGE, in pct. pts. Alliance Boots Hldgs 324 –16 11 –22 Rallye 599 10 24 –384 reached a binding agreement, the stuff, then everyone knows it’s good,” new West Africa oil province, Exxon For major privately owned oil said the company’s publicly reported Mid-spread, since most recent roll ITV Plc 483 –13 14 11 M real 1445 19 82 –353 says Neil McMahon, an energy ana- is engaged in some high-profile, companies, “Access to reserves is a Index: series/version in pct. pts. Mid-price Coupon Maximum Minimum Average deal hasn’t yet been approved by the financial results were bolstered Source: Markit Group Ghanaian government and is there- lyst with Sanford C. Bernstein. deepwater exploration activities off huge issue,” says Peter Hitchens, an through“accountingmagic”andthat Europe: 12/1 0.92 100.36% 0.01% 1.00 0.78 0.87 fore subject to change. The acquisition is the largest deal the coasts of the Philippines, Turkey, oil analyst with financial services executives failed to tell the public the Eur. High Volatility:12/1 1.60 97.19 0.01 1.76 1.42 1.55 The seller is Dallas-based Kos- for the famously conservative com- Madagascar and Greenland. It also company Panmure Gordon. “In Bra- company wasn’t producing enough Europe Crossover:12/1 5.87 96.56 0.05 6.15 5.52 5.78 US: Bank revenues from equity capital markets mos Energy, which was part of a pany in over a decade. In the late recently backed a large oil-sands de- zil, they’re having to compete with cash to cover its growing debt. Asia ex-Japan IG: 12/1 1.22 98.96 0.01 1.26 1.06 1.15 group that made the 2007 offshore 1990s, Exxon Corp. and Mobil Corp. velopment in Canada and a gas ex- the Chinese and the Indians. So if you PaulC.Saunders, alawyerforViv- Japan: 12/1 1.51 97.48 0.01 1.53 0.99 1.30 Behind every IPO, n Equity capital markets n Debt capital markets (both in billions, left axis) Note: Data as of October 5 follow-on or discovery that is estimated to hold combined in an $81.2 billion merger, port facility in Australia. While none can get into a new play at an early endi, said the company had enough ECM as a percentage of total convertible equity 6 75% 1.8 billion barrels of oil. Anadarko creating the world’s largest share- of these regions is large enough to stage like this, it’s very desirable.” cash and credit to pay its bills and WSJ.com In percentage points (right axis) Petroleum Corp. and Tullow Oil PLC holder-owned oil company. transform the company, put to- It isn’t clear which company never defaulted on a single obliga- Spreads offering is one or t Europe Crossover Index roll more investment also own separate stakes in the Around the same time, Exxon bid gether they could help Exxon main- would be the operator of Jubilee, tion.Hesaidthecompanyproperlyre- Follow the markets throughout Spreads on five- t 8.00 banks. At right, field, known as Jubilee. aggressivelyforexplorationlicenses tain its production and reserves. which is expected to begin produc- ported its financials as required un- the day, with updated stock year swaps for 4 50 6.00 investment banks On Monday Kosmos informed bid- in several deepwater blocks off An- The Kosmos deal also under- ing oil in 2010. Tullow has a 34.7% der accounting rules. quotes, news and commentary corporate debt; historical and year- dersforits23.5%stakeinthefieldthat gola, which was then anunproven oil scores a new willingness by Exxon stake, larger than the share Exxon is The suit alleges Vivendi, former at WSJ.com/Europe. based on Markit 4.00 Europe Sub Financials to-date revenues it had “entered into an exclusive bind- region emerging from years of civil to acquire assets in the face of rising acquiring from Kosmos. Anadarko Chief Executive Jean-Marie Messier Also, receive email alerts that iTraxx indexes. t 2 25 2.00 from global equity- ingagreement”withExxon,according war. The deal proved prescient: An- financial strength and global ambi- also holds a large interest. The Gha- and Guillaume Hannezo, a former summarize the day’s trading in capital-market toa person who hadseen the letter. gola is now a major oil producer and tion on the part of oil companies naian national oil company and two chief financial officer, made material Europe and Asia. 0 (ECM) deals The news of the deal was cheered in 2007 became a member of OPEC. backed by the Chinese and Indian other companies hold small stakes. misrepresentations and omissions To sign up, go to April May June July Aug. Sept. Oct. 0 0 2009 by investors. In London trading Opening up its wallet to pur- governments. China National Off- —Guy Chazan and James Herron concerning the firm’s liquidity posi- WSJ.com/Online Today 2004 2005 2006 2007 2008 2009 Tullow rose 8.4% to £12.09 ($19.28). chase oil assets signals a new strate- shore Oil Corp. and India’s Oil & Nat- contributed to this article. tion. They have denied wrongdoing. Source: Markit Group Source: Dealogic 30 WEDNESDAY, OCTOBER 7, 2009 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. WEDNESDAY, OCTOBER 7, 2009 7 GLOBAL MARKETS LINEUP Special Advertising Section

Commodities Prices of futures contracts with the most open interest Currencies London close on Oct. 6 Global Finance 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 5.6577 0.1768 3.8363 0.2607 Euro zone euro 1 1 0.6781 1.4748 Commodity Exchange Last price Net Percentage high low Brazil real 2.5732 0.3886 1.7448 0.5731 1-mo. forward 1.0000 1.0000 0.6781 1.4747 Corn (cents/bu.) CBOT 358.25 16.75 4.90% 707.00 302.00 Canada dollar 1.5600 0.6410 1.0578 0.9454 3-mos. forward 1.0002 0.9998 0.6782 1.4745 Soybeans (cents/bu.) CBOT 910.00 25.00 2.82 1,557.50 670.00 1-mo. forward 1.5599 0.6411 1.0577 0.9454 6-mos. forward 1.0005 0.9995 0.6784 1.4741 Unprecedented action helps defuse crisis, Wheat (cents/bu.) CBOT 460.25 17.50 3.95 1,155.75 439.25 3-mos. forward 1.5598 0.6411 1.0576 0.9455 Czech Rep. koruna-b 25.597 0.0391 17.356 0.0576 6-mos. forward 1.5597 0.6412 1.0575 0.9456 Live cattle (cents/lb.) CME 83.550 –0.350 –0.42% 116.900 83.450 Denmark krone 7.4449 0.1343 5.0481 0.1981 Chile peso 816.52 0.001225 553.65 0.001806 Cocoa ($/ton) ICE-US 3,211 –29 –0.90 3,268 1,961 Hungary forint 266.80 0.003748 180.91 0.005528 Colombia peso 2804.55 0.0003566 1901.65 0.0005259 Norway krone 8.3581 0.1196 5.6673 0.1765 Coffee (cents/lb.) ICE-US 133.60 4.15 3.21 189.00 112.00 Ecuador US dollar-f 1.4748 0.6781 1 1 postrecession world becomes clear Poland zloty 4.1856 0.2389 2.8381 0.3523 Sugar (cents/lb.) ICE-US 24.00 –0.19 –0.79 26.25 11.91 Mexico peso-a 19.9118 0.0502 13.5014 0.0741 Russia ruble-d 43.945 0.02276 29.798 0.03356 Cotton (cents/lb.) ICE-US 62.98 1.39 2.26 101.50 45.25 Peru sol 4.2224 0.2368 2.8630 0.3493 Sweden krona 10.2026 0.0980 6.9180 0.1446 Crude palm oil (ringgit/ton) MDEX 2,062.00 20 0.98 2,493 1,990 Uruguay peso-e 31.192 0.0321 21.150 0.0473 Switzerland franc 1.5120 0.6614 1.0252 0.9754 Cocoa (pounds/ton) LIFFE 2,120 –13 –0.61 2,135 1,187 € U.S. dollar 1.4748 0.6781 1 1 1-mo. forward 1.5116 0.6616 1.0249 0.9757 With commitments of 5 trillion, government rescue efforts Robusta coffee ($/ton) LIFFE 1,419 43 3.13 2,256 1,275 Venezuela bolivar 3.17 0.315772 2.15 0.465701 3-mos. forward 1.5108 0.6619 1.0244 0.9762 By Catherine Bolgar Copper (cents/lb.) COMEX 278.45 5.75 2.11 378.00 131.15 ASIA-PACIFIC 6-mos. forward 1.5093 0.6626 1.0234 0.9771 helped avoid ‘worst-case’ scenario. Gold ($/troy oz.) COMEX 1039.70 21.90 2.15 1,060.00 494.00 Australia dollar 1.6547 0.6044 1.1220 0.8913 Turkey lira 2.1640 0.4621 1.4674 0.6815 Silver (cents/troy oz.) COMEX 1729.50 76.00 4.60 2,200.00 740.00 China yuan 10.0676 0.0993 6.8264 0.1465 U.K. pound 0.9257 1.0803 0.6277 1.5932 s bad as this recession is, it widespread speed in taking action to help Aluminum ($/ton) LME 1,830.00 37.00 2.06 2,319.50 1,288.00 Hong Kong dollar 11.4301 0.0875 7.7503 0.1290 1-mo. forward 0.9258 1.0801 0.6278 1.5929 could have been worse. stabilize financial markets, done in an unusu- Tin ($/ton) LME 14,300.00 105.00 0.74 16,150.00 9,750.00 India rupee 69.0280 0.0145 46.8050 0.0214 3-mos. forward 0.9260 1.0799 0.6279 1.5926 Unprecedented government ally coordinated fashion,” says Nigel Pain, Indonesia rupiah 13928 0.0000718 9444 0.0001059 Copper ($/ton) LME 6,060.00 175.00 2.97 6,499.00 2,815.00 6-mos. forward 0.9262 1.0797 0.6280 1.5924 action, coordinated among many senior economist at the Organization for Lead ($/ton) LME 2,153.00 13.00 0.61 2,459.50 870.00 Japan yen 130.86 0.007642 88.73 0.011270 MIDDLE EAST/AFRICA A countries, along with major moves by inter- Economic Cooperation and Development Zinc ($/ton) LME 1,914.00 33.00 1.75 1,986.00 1,065.00 1-mo. forward 130.83 0.007643 88.71 0.011273 Bahrain dinar 0.5560 1.7987 0.3770 2.6527 Nickel ($/ton) LME 17,950 725 4.21 21,150 9,000 3-mos. forward 130.77 0.007647 88.67 0.011278 Egypt pound-a 8.0863 0.1237 5.4830 0.1824 national organizations helped stem the panic (OECD) in Paris. Actions taken by one 6-mos. forward 130.67 0.007653 88.60 0.011287 Crude oil ($/bbl.) NYMEX 70.88 0.47 0.67 125.63 45.87 Israel shekel 5.5062 0.1816 3.7335 0.2678 and put a floor country helped others. Malaysia ringgit-c 5.0659 0.1974 3.4350 0.2911 Heating oil ($/gal.) NYMEX 1.8142 0.0226 1.26 4.0649 1.3140 Jordan dinar 1.0449 0.9570 0.7085 1.4114 under the These actions included shoring up bank New Zealand dollar 2.0003 0.4999 1.3563 0.7373 RBOB gasoline ($/gal.) NYMEX 1.7727 0.0188 1.07 2.7400 1.0780 Kuwait dinar 0.4225 2.3671 0.2865 3.4910 financial crisis capital, providing debt guarantees to banks Pakistan rupee 122.925 0.0081 83.350 0.0120 Natural gas ($/mmBtu) NYMEX 4.880 –0.107 –2.15 12.405 3.491 Lebanon pound 2214.41 0.0004516 1501.50 0.0006660 Philippines peso 68.836 0.0145 46.675 0.0214 that a year ago and buying all or parts of banks’ distressed Brent crude ($/bbl.) ICE-EU 69.36 0.53 0.77 149.27 45.99 Saudi Arabia riyal 5.5307 0.1808 3.7502 0.2667 Singapore dollar 2.0645 0.4844 1.3999 0.7144 South Africa rand 10.9224 0.0916 7.4060 0.1350 threatened to assets. According to an assessment of financial- Gas oil ($/ton) ICE-EU 576.50 24.50 4.44 897.00 428.25 South Korea won 1722.35 0.0005806 1167.85 0.0008563 United Arab dirham 5.4169 0.1846 3.6730 0.2723 melt down the sector rescue programs published in July WSJ.com Source: Thomson Reuters; WSJ Market Data Group Taiwan dollar 47.348 0.02112 32.105 0.03115 global economy. by the Bank for International Settlements, Thailand baht 49.192 0.02033 33.355 0.02998 SDR -f 0.9298 1.0755 0.6305 1.5861 “What’s been unusual Follow the markets throughout the day, with updated stock quotes, news and commentary at a-floating rate b-commercial rate c-government rate c-commercial rate d-Russian Central Bank rate f-Special Drawing Rights from the Inter- GETTY IMAGES/3D4Medical.com in this downturn has been the Continued on following page WSJ.com/Europe. Also, receive email alerts that summarize the day’s trading in Europe and Asia. national Monetary Fund ; based on exchange rates for U.S., British and Japanese currencies. To sign up, go to WSJ.com/Online Today Note: Based on trading among banks in amounts of $1 million and more, as quoted by Thomson Reuters.

Major stock market indexes Stock indexes from around the world, grouped by region. Shown in local-currency terms.

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. 47 EUROPE DJ Stoxx 600 241.17 5.08 2.15% 22.5% 0.2% … Russia RTSI 1270.63 43.44 3.54% 101.1% 48.1% 21 DJ Stoxx 50 2438.15 49.79 2.08 18.0% –3.5% 11 Spain IBEX 35 11817.1 260.1 2.25 28.5% 8.8% 40 Euro Zone DJ Euro Stoxx 268.54 6.97 2.66 20.5% 2.3% 15 Sweden OMX Stockholm 278.57 5.06 1.85 36.4% 24.3% 18 DJ Euro Stoxx 50 2865.70 74.92 2.68 16.9% –0.5% 13 Switzerland SMI 6277.16 114.26 1.85 13.4% –2.3% 16 Austria ATX 2611.74 110.74 4.43 49.2% 5.8% 9 Turkey ISE National 100 49466.05 1517.64 3.17 84.1% 56.7% 14 Belgium Bel-20 2526.87 80.87 3.31 32.4% 0.7% 13 U.K. FTSE 100 5137.98 113.65 2.26 15.9% 11.6% 11 Czech Republic PX 1144.2 20.6 1.83 33.3% 5.5% 41 ASIA-PACIFIC DJ Asia-Pacific 118.39 1.88 1.61 26.5% 16.3% 18 Denmark OMX Copenhagen 311.21 5.55 1.82 37.6% 8.8% … Australia SPX/ASX 200 4591.6 18.3 0.40 23.4% –0.6% 14 Finland OMX Helsinki 6311.70 139.75 2.26 16.8% –0.4% … China CBN 600 24032.93 Closed 62.8% 43.5% 16 France CAC-40 3770.21 95.20 2.59 17.2% 1.0% 19 Hong Kong Hang Seng 20811.53 382.46 1.87 44.7% 23.9% 19 Germany DAX 5657.64 148.79 2.70 17.6% 6.2% 20 India Sensex 16958.54 92.13 0.55 75.8% 45.0% … Hungary BUX 20286.04 501.56 2.54 65.7% 16.3% … Japan Nikkei Stock Average 9691.80 17.31 0.18 9.4% –4.6% 18 Ireland ISEQ 3295.75 62.72 1.94 40.6% –0.1% … Singapore Straits Times 2611.89 28.16 1.09 48.3% 19.9% 13 Italy FTSE MIB 23459.59 628.74 2.75 20.6% –0.7% 11 South Korea Kospi 1598.44 –8.46 –0.53% 42.2% 17.0% … Netherlands AEX 309.28 8.06 2.68 25.8% –0.1% 1 AMERICAS DJ Americas 278.70 3.24 1.18 23.3% 8.4% 14 Norway All-Shares 375.84 9.56 2.61 39.1% 16.7% … Brazil Bovespa 62200.99 –168.31 –0.27 65.6% 52.8% 17 Poland WIG 38088.97 935.87 2.52 39.9% 11.5% 19 Mexico IPC 29565.77 351.37 1.20 32.1% 37.9% 17 Portugal PSI 20 8594.46 182.73 2.17 35.5% 25.1%

*P/E ratios use trailing 12-months, as-reported earnings Reuters Group PLC is the primary data provider for several statistical tables in The Wall Street Journal, including foreign stock quotations, futures and futures 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. Dow Jones and Dow Jones Stoxx Indexes MSCI indexes

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 Oct. 6, 2009 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. 2.30% 2 DJ Global Index -a % % 216.75 1.83% 11.6% 4.25% 14 U.S. Select Dividend -b % % 602.68 0.97% –8.5% Price-to- LOCAL-CURRENCY Dividend earnings PERFORMANCE 1.88% 20 Global Dow 1198.60 1.00% –1.7% 1877.30 1.82% 6.3% 4.03% 17 Infrastructure 1337.50 0.53% –1.7% 1877.21 1.17% 6.1% yield ratio Morgan Stanley Index Last Daily YTD 52-wk. 2.75% 47 Stoxx 600 241.20 2.15% 0.2% 265.63 2.99% 8.3% 1.45% 9 Luxury 834.90 1.63% 22.7% 1043.83 2.46% 32.7% 2.50% 24 ALL COUNTRY (AC) WORLD* 280.81 0.93% 23.3% –4.7% 2.89% 36 Stoxx Large 200 257.00 2.06% –2.1% 281.53 2.90% 5.9% 6.08% 6 BRIC 50 403.90 1.60% 39.8% 566.83 2.25% 51.0% 2.50% 25 World (Developed Markets) 1,099.44 0.97% 19.5% –7.0% 2.12% -63 Stoxx Mid 200 227.60 2.51% 11.9% 249.34 3.34% 21.0% 2.88% 15 Africa 50 737.80 1.79% –1.0% 689.43 2.45% 6.8% 2.30% 26 World ex-EMU 127.85 0.94% 18.8% –7.5% 2.15% 150 Stoxx Small 200 145.10 2.74% 13.6% 158.91 3.58% 22.9% 3.14% 10 GCC % % 1558.53 0.91%–20.8% 2.40% 28 World ex-UK 1,097.39 0.96% 18.8% –6.9% 2.77% 40 Euro Stoxx 268.50 2.66% 2.3% 295.78 3.50% 10.6% 2.76% 18 Sustainability 783.50 1.64% 0.1% 973.84 2.30% 8.1% 3.00% 26 EAFE 1,502.49 0.38% 21.4% –3.3% 2.89% 34 Euro Stoxx Large 200 283.90 2.63% –0.2% 310.72 3.47% 7.9% 2.25% 13 Islamic Market -a % % 1844.22 1.79% 14.6% 2.20% 19 Emerging Markets (EM) 907.02 0.63% 60.0% 15.3% 2.20% 76 Euro Stoxx Mid 200 258.30 2.75% 14.1% 282.63 3.59% 23.4% 2.63% 14 Islamic Market 100 1567.40 1.12% –0.5% 1974.83 1.77% 7.4% 3.50% 17 EUROPE 82.07 0.84% 18.2% –8.3% 2.26% -52 Euro Stoxx Small 200 164.40 3.04% 18.7% 179.79 3.88% 28.4% 2.63% 14 Islamic Turkey -c % % % % 3.70% 19 EMU 174.97 1.12% 23.2% –4.3% 4.79% 13 Stoxx Select Dividend 30 1406.10 2.88% –8.8% 1774.60 3.72% –1.4% 1.92% 21 DJ U.S. TSM % % 10880.43 1.38% 8.2% 3.30% 21 Europe ex-UK 91.19 0.83% 17.5% –6.6% 3.96% 15 Euro Stoxx Select Div 30 1694.60 3.41% –3.8% 2147.00 4.25% 4.0% % DJ-UBS Commodity 119.80 1.37% –22.0% 128.31 2.20%–15.6% 4.10% 15 Europe Value 94.29 0.94% 21.6% –6.9% *Fundamentals are based on data in U.S. dollar. Footnotes: a-in US dollar. b-dividends reinvested. c-in local currency. Note: All data as of 2 p.m. ET. Source: Dow Jones Indexes 2.80% 19 Europe Growth 69.34 0.73% 14.7% –9.8% 2.50% 18 Europe Small Cap 149.98 0.86% 48.6% 3.6% Cross rates U.S.-dollar and euro foreign-exchange rates in global trading 2.10% 10 EM Europe 247.17 0.96% 55.6% –15.5% 3.80% 12 UK 1,495.38 0.70% 13.7% 2.8% USD GBP CHF SEK RUB NOK JPY ILS EUR DKK CDN AUD 2.70% 21 Nordic Countries 126.99 1.02% 29.5% –4.3% Australia 1.1220 1.7875 1.0944 0.1622 0.0377 0.1980 0.0126 0.3005 1.6547 0.2223 1.0607 ... 1.50% 9 Russia 659.60 0.65% 60.0% –18.5% Canada 1.0578 1.6852 1.0317 0.1529 0.0355 0.1866 0.0119 0.2833 1.5600 0.2095 ... 0.9428 2.90% 13 South Africa 664.29 0.74% 14.7% 6.4% Denmark 5.0481 8.0426 4.9240 0.7297 0.1694 0.8907 0.0569 1.3521 7.4449 ... 4.7725 4.4994 2.60% 24 AC ASIA PACIFIC EX-JAPAN 383.01 –0.19% 54.8% 18.6% Euro 0.6781 1.0803 0.6614 0.0980 0.0228 0.1196 0.0076 0.1816 ... 0.1343 0.6410 0.6044 1.30% -41 Japan 535.80 –0.91% 1.1% –21.5% Israel 3.7335 5.9482 3.6417 0.5397 0.1253 0.6588 0.0421 ... 5.5062 0.7396 3.5297 3.3277 2.00% 19 China 58.38 0.87% 43.1% 27.1% Japan 88.7300 141.3646 86.5490 12.8261 2.9778 15.6565 ... 23.7659 130.8590 17.5769 83.8856 79.0850 0.90% 20 India 670.62 –1.39% 81.6% 31.8% Norway 5.6673 9.0291 5.5280 0.8192 0.1902 ... 0.0639 1.5180 8.3581 1.1227 5.3579 5.0513 0.80% 26 Korea 453.75 –2.68% 47.8% 13.4% Russia 29.7975 47.4734 29.0651 4.3073 ... 5.2578 0.3358 7.9811 43.9454 5.9027 28.1706 26.5585 2.70% 415 Taiwan 271.36 0.04% 56.5% 21.3% Sweden 6.9180 11.0217 6.7479 ... 0.2322 1.2207 0.0780 1.8529 10.2026 1.3704 6.5403 6.1660 Switzerland 1.0252 1.6333 ... 0.1482 0.0344 0.1809 0.0116 0.2746 1.5120 0.2031 0.9692 0.9138 1.90% 32 US BROAD MARKET 1,154.66 1.56% 17.5% –9.9% U.K. 0.6277 ... 0.6122 0.0907 0.0211 0.1108 0.0071 0.1681 0.9257 0.1243 0.5934 0.5594 1.30% -17 US Small Cap 1,575.64 2.07% 26.4% –7.9% U.S. ... 1.5932 0.9754 0.1446 0.0336 0.1765 0.0113 0.2678 1.4748 0.1981 0.9454 0.8913 3.30% 15 EM LATIN AMERICA 3,738.04 2.43% 79.9% 17.3% Source: Thomson Reuters via WSJ Market Data Group *Twenty-three developed and 26 emerging markets Source: MSCI Barra 8 WEDNESDAY, OCTOBER 7, 2009 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. WEDNESDAY, OCTOBER 7, 2009 29

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REUTERS/Alex Grimm; Larry Downing; Jason Lee 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 PF (LUX)-USD Liq-Pca US MM LUX 10/05 USD 131.00 0.6 1.2 2.0 Choice Asia ex. Japan -D- OT OT LUX 10/06 USD 1.22 50.9 NS NS MENA Special Sits Fund OT OT BMU 08/31 USD 1085.58 11.8 NS NS PF (LUX)-USD Liq-Pdi US MM LUX 10/05 USD 85.54 0.6 1.2 2.1 Currency Alpha EUR -IC- OT OT LUX 10/06 EUR 10.43 –4.3 –3.3 0.1 UAE Blue Chip Fund OT OT ARE 10/01 AED 6.66 45.2 –24.0 –12.1 EFG-Hermes Saudi Arabia EquityEA EQ SAU 09/29 SAR 6.08 28.3 –20.6 NS PF (LUX)-USD Sov Liq-Pca OT OT LUX 10/05 USD 101.57 0.3 0.9 NS Currency Alpha EUR -RC- OT OT LUX 10/06 EUR 10.34 –4.7 –3.7 –0.4 EFG-Hermes Telecom OT EQ BMU 08/31 USD 29.83 16.3 –5.6 –7.2 PF (LUX)-USD Sov Liq-Pdi OT OT LUX 10/05 USD 100.85 0.3 0.9 NS Currency Alpha SEK -ID- OT OT LUX 10/06 SEK 96.99 –8.1 –7.3 NS n HSBC ALTERNATIVE INVESTMENTS LIMITED PF (LUX)-Water-Pca GL EQ LUX 10/05 EUR 112.29 8.7 –8.5 –15.8 Currency Alpha SEK -RC- OT OT LUX 10/06 SEK 105.82 –4.7 –3.7 –0.4 T +44 20 7860 3074 F + 44 20 7860 3174 www.hail.hsbc.com PF (LUX)-WldGovBds-Pca GL BD LUX 10/06 USD 169.29 2.7 12.8 9.4 Generation Fd 80 OT OT LUX 10/06 SEK 7.35 14.3 –2.3 –14.7 PF (LUX)-WldGovBds-Pdi GL BD LUX 10/06 USD 140.13 2.7 12.8 9.4 Nordic Focus EUR NO EQ LUX 10/06 EUR 74.12 44.7 6.9 NS Nordic Focus NOK NO EQ LUX 10/06 NOK 77.31 44.7 6.9 NS n HSBC Portfolio Selection Fund n WWW.SGAM.COM n POLAR CAPITAL PARTNERS LIMITED Nordic Focus SEK NO EQ LUX 10/06 SEK 80.78 44.7 6.9 NS Sel Emerg Mkt Debt GL BD GGY 10/05 USD 346.04 40.9 24.5 6.2 International Fund Managers (Ireland) Limited PH - 353 1 670 660 Fax - 353 1 670Russia 1185 Fd OT OT LUX 10/06 EUR 7.83 128.3 25.1 –18.1 SGAM FUND Sel Emerg Mkt Equity GL EQ GGY 10/05 USD 199.09 52.0 18.3 –14.4 Global Technology OT EQ IRL 10/05 USD 11.89 51.7 24.0 –11.7 Bonds ConvEurope A OT OT LUX 10/02 EUR 29.10 2.6 –4.0 1.1 n Bonds Eur Corp A OT OT LUX 10/02 EUR 22.96 10.7 12.1 2.0 Sel Euro Equity EUR US EQ GGY 10/05 EUR 92.55 23.0 –7.0 –23.3 Japan Fund USD JP EQ IRL 10/06 USD 16.41 11.7 28.9 –4.7 SEB Fund 3 Bonds Eur Hi Yld A OT OT LUX 10/02 EUR 20.02 50.6 14.5 –3.8 Sel European Equity EU EQ GGY 10/05 USD 179.47 30.5 –3.6 –22.2 Polar Healthcare Class I USDOT OT IRL 10/05 USD 11.97 NS NS NS Choice North America Eq. Fd US EQ LUX 10/06 USD 1.69 19.6 –7.8 –18.3 Bonds EURO A OT OT LUX 10/02 EUR 41.25 4.5 9.1 6.0 Sel Glob Equity GL EQ GGY 10/05 USD 182.29 26.9 –1.2 –21.7 Polar Healthcare Class R USDOT OT IRL 10/05 USD 11.97 NS NS NS Ethical Glbl Fd -C- OT OT LUX 10/06 USD 0.79 15.5 NS NS Sel Glob Fxd Inc GL BD GGY 10/05 USD 142.12 10.2 6.6 –0.6 Ethical Glbl Fd -D- OT OT LUX 10/06 USD 0.76 26.8 –1.2 –18.3 Bonds Europe A OT OT LUX 10/02 EUR 39.31 3.8 7.7 5.0 Sel Pacific Equity AS EQ GGY 10/05 USD 136.99 51.5 16.6 –13.2 n Hemisphere Management (Ireland) Limited Ethical Sweden Fd NO EQ LUX 10/06 SEK 38.26 37.0 17.3 –11.8 Bonds US MtgBkSec A OT OT LUX 04/29 USD 24.41 –4.7 11.9 0.0 Bonds US OppsCoreplus A OT OT LUX 10/05 USD 36.65 16.2 16.3 9.2 Sel US Equity US EQ GGY 10/05 USD 117.10 16.2 –5.2 –19.5 Discovery USD A OT OT CYM 08/31 USD 120.86 10.8 12.5 12.2 Index Linked Bd Fd SEK OT BD LUX 10/06 SEK 13.16 3.4 5.0 5.4 Bonds World A OT OT LUX 10/02 USD 43.28 8.7 16.0 9.7 Sel US Sm Cap Eq US EQ GGY 10/05 USD 164.91 26.1 –1.6 –20.4 Elbrus USD A GL EQ CYM 08/31 USD 9.17 35.9 –24.7 –17.9 Medical Fd OT EQ LUX 10/06 USD 3.05 5.1 –8.2 –11.4 Europn Conviction USD B EU EQ CYM 08/31 USD 132.59 5.0 12.4 10.7 Short Medium Bd Fd SEK NO MM LUX 10/06 SEK 8.81 1.1 2.4 2.5 Eq. China A OT OT LUX 10/05 USD 21.19 41.8 28.7 –23.2 Eq. ConcentratedEuropeA OT OT LUX 10/02 EUR 25.15 22.1 –5.7 –22.2 Europn Forager USD B OT OT CYM 08/31 USD 211.30 18.1 6.5 0.7 Technology Fd -C- OT OT LUX 10/06 USD 0.19 NS NS NS Eq. Eastern Europe A OT OT LUX 10/02 EUR 20.12 52.3 –16.7 –31.1 Latin America USD A GL EQ CYM 06/30 USD 14.25 2.2 –4.7 14.7 Technology Fd -D- OT OT LUX 10/06 USD 2.30 45.3 15.0 –11.5 Eq. Equities Global Energy OT OT LUX 10/02 USD 16.59 16.4 –6.5 –16.6 Paragon Limited USD A OT OT CYM 12/31 USD 309.60 12.7 12.7 14.2 World Fd -C- OT OT LUX 10/06 USD 27.71 NS NS NS Eq. Euroland A OT OT LUX 10/02 EUR 10.12 10.5 –11.1 –24.8 UK Fund USD A OT OT CYM 08/31 USD 185.62 11.9 9.8 5.8 World Fd -D- OT OT LUX 10/06 USD 2.10 28.3 6.3 –13.2 Eq. Euroland MidCapA OT OT LUX 04/30 EUR 14.61 1.4 –45.7 –33.8 n PT CIPTADANA ASSET MANAGEMENT n SEB Fund 4 Eq. EurolandCyclclsA OT OT LUX 10/02 EUR 16.54 20.4 –2.5 –19.8 n MP ASSET MANAGEMENT INC. Tel: 521-3479 Fax: 521-3478 Website: www.ciptadana-asset.com Short Bond Fd EUR -C- OT OT LUX 10/06 EUR 1.27 0.0 0.9 1.1 Eq. EurolandFinancialA OT OT LUX 10/02 EUR 11.63 38.1 –8.4 –23.1 Short Bond Fd EUR -D- OT OT LUX 10/06 NA 0.50 NS NS NS Eq. Glbl Emg Cty A OT OT LUX 10/02 USD 8.97 50.0 14.0 –18.0 Tel: + 386 1 587 47 77 Indonesian Grth Fund EA EQ CYM 09/30 USD 118.53 105.5 28.2 0.3 Short Bond Fd SEK NO MM LUX 10/06 SEK 21.95 1.8 3.2 2.7 Eq. Global A OT OT LUX 10/02 USD 25.80 22.6 2.2 –19.8 MP-BALKAN.SI OT OT SVN 10/05 EUR 26.98 2.9 –29.0 –44.7 n RUSSELL INVESTMENT GROUP Short Bond Fd USD US MM LUX 10/06 USD 2.49 –0.2 0.4 1.3 Eq. Global Technol A OT OT LUX 04/24 USD 4.46 22.1 –29.7 –21.6 MP-TURKEY.SI OT OT SVN 10/05 EUR 31.55 61.5 4.9 –24.4 Multi-Style, Multi-Manager Funds www.russell.com Eq. Gold Mines A OT OT LUX 10/02 USD 27.54 31.7 47.5 –3.1 n SEB Fund 5 Eq. Japan Sm Cap A OT OT LUX 10/05 JPY 1079.45 19.2 8.0 –24.5 n PAREX ASSET MANAGEMENT IPAS Actions France A EU EQ IRL 10/05 EUR 665.38 18.1 –9.6 –20.2 Alpha Bond Fd SEK -A- NO BD LUX 10/06 SEK 10.34 2.8 4.1 1.0 Eq. Japan Target A OT OT LUX 10/06 JPY 1701.67 10.0 5.0 –12.8 Core Eurozone Eq B EU EQ IRL 10/05 EUR 788.21 19.9 –6.0 NS Central banks around the world, including Europe, the U.S. and China, have coordinated in slashing interest rates. Successive cuts have brought rates near to zero in the U.S. and the U.K. Basteja Blvd. 14, Riga, LV-1050, Latvia Alpha Bond Fd SEK -B- NO BD LUX 10/06 SEK 8.95 2.8 4.1 1.0 Eq. Pacific A OT OT LUX 10/05 USD 9.57 49.9 17.1 –17.8 Euro Fixed Income A EU BD IRL 10/05 EUR 1222.51 8.0 4.8 –1.6 www.parexgroup.com Tel: +371 67010810 Alpha Bond Fd SEK -C- NO BD LUX 10/06 SEK 25.87 2.7 3.9 0.9 Eq. US ConcenCore A OT OT LUX 10/02 USD 20.21 24.4 5.4 –14.2 Euro Fixed Income B EU BD IRL 10/05 EUR 1303.27 8.5 5.5 –1.0 Parex Caspian Sea Eq EU EQ LVA 10/02 EUR 3.30 57.1 –34.5 –40.9 Alpha Bond Fd SEK -D- NO BD LUX 10/06 SEK 8.06 2.7 3.9 0.9 Eq. US Lg Cap Gr A OT OT LUX 10/02 USD 13.91 29.0 1.2 –17.7 Washington think tank. The IMF governments might be forced Euro Small Cap A EU EQ IRL 10/05 EUR 1136.04 34.0 –3.4 –24.3 Parex Eastern Europ Bal OT OT LVA 10/02 EUR 13.06 52.2 6.4 –3.2 Alpha Short Bd SEK -A- NO MM LUX 10/06 SEK 11.09 2.6 3.5 3.1 Eq. US Mid Cap A OT OT LUX 10/05 USD 27.55 37.5 13.0 –17.3 Euro Small Cap B EU EQ IRL 10/05 EUR 1215.16 34.6 –2.8 –23.9 Parex Eastern Europ Bd EU BD LVA 10/02 USD 14.00 60.6 12.5 1.8 Alpha Short Bd SEK -B- NO MM LUX 10/06 SEK 10.14 2.6 3.5 3.1 Eq. US Multi Strg A OT OT LUX 10/05 USD 20.02 25.3 –2.2 –18.6 Unprecedented action helps defuse crisis, “did what it was supposed to do: to hold some of these assets Eurozone Agg Eq A EU EQ IRL 10/05 EUR 628.06 26.4 –3.7 –21.6 Parex Russian Eq EE EQ LVA 10/02 USD 17.92 106.9 8.8 –19.9 Alpha Short Bd SEK -C- NO MM LUX 10/06 SEK 21.68 2.5 3.4 3.0 Eq. US Rel Val A OT OT LUX 10/05 USD 19.61 26.3 –5.3 –20.7 Eurozone Agg Eq B EU EQ IRL 10/05 EUR 901.31 27.0 –3.2 –21.1 get countries money in a way that longer than they originally Alpha Short Bd SEK -D- NO MM LUX 10/06 SEK 8.20 2.5 3.4 3.0 Eq. US Sm Cap Val A OT OT LUX 10/05 USD 15.58 20.4 –15.5 –25.4 Glbl Bd (EuroHdg) A GL BD IRL 10/05 EUR 1357.54 13.4 8.9 2.7 Bond Fd SEK -C- NO BD LUX 10/06 SEK 42.67 2.7 9.8 6.7 Eq. US Value Opp A OT OT LUX 10/02 USD 15.11 16.6 –15.3 –26.4 postrecession world becomes clear made sure the economy didn’t thought,” he says. Glbl Bd (EuroHdg) B GL BD IRL 10/05 EUR 1438.86 13.9 9.5 3.4 Bond Fd SEK -D- NO BD LUX 10/06 SEK 12.39 2.8 9.9 6.2 Money Market EURO A OT OT LUX 10/05 EUR 27.37 0.9 1.9 3.1 Glbl Bd A EU BD IRL 10/05 EUR 1080.37 10.2 7.0 2.7 collapse,” he says. “It was as much Policy makers need to announce Corp. Bond Fd EUR -C- EU BD LUX 10/06 EUR 1.25 14.6 15.5 2.6 Money Market USD A OT OT LUX 10/05 USD 15.83 0.5 1.1 2.2 Glbl Bd B EU BD IRL 10/05 EUR 1148.96 10.7 7.7 3.4 Corp. Bond Fd EUR -D- EU BD LUX 10/06 EUR 0.96 14.7 15.6 2.4 Continued from previous page Sweden and China slashed rates led growth model, which screeched the ability of a country to open a their intentions well in advance to Glbl Real Estate A OT EQ IRL 10/05 USD 828.08 24.2 –11.1 –24.8 Corp. Bond Fd SEK -C- NO BD LUX 10/06 SEK 12.42 15.7 10.1 1.3 the Basel-based bank for central in a coordinated move. Successive to a halt when demand for their line of substantial credit even if it minimize disruptions, says Mr. Pain Glbl Real Estate B OT EQ IRL 10/05 USD 852.50 24.8 –10.6 –24.3 Corp. Bond Fd SEK -D- NO BD LUX 10/06 SEK 9.39 15.7 10.1 1.4 n PICTET & CIE, ROUTE DESACACIAS 60, CH-1211 GENEVA 73 Glbl Real Estate EH-A OT EQ IRL 10/05 EUR 743.12 18.5 –15.4 –26.0 Danish Mortgage Bond Fd EURNO -ID- BD LUX 10/06 EUR 104.20 0.3 6.0 NS banks, 11 countries committed a cuts have brought rates near to products dried up almost over- didn’t draw on it that kept their of the OECD, though it’s still too Tel: + 41 (58) 323 3000 Web: www.pictetfunds.com Glbl Real Estate SH-B OT EQ IRL 10/05 GBP 69.90 17.9 –16.3 –25.6 Danish Mortgage Bond Fd EURNO -RC- BD LUX 10/06 EUR 108.60 4.8 10.7 NS Glbl Strategic Yield A EU BD IRL 10/05 EUR 1525.95 35.0 13.3 0.4 combined €5 trillion, while zero in the U.S. and the U.K. In night. The World Bank stepped markets from collapse.” soon to actually withdraw the PF (LUX)-Asian Eq-Ica AS EQ LUX 10/06 USD 163.56 44.9 19.0 –20.0 Danish Mortgage Bond Fd SEKOT -ID- OT LUX 12/17 SEK 121.91 NS NS NS Glbl Strategic Yield B EU BD IRL 10/05 EUR 1630.66 35.6 14.0 1.0 Danish Mortgage Bond Fd SEKNO -RC- BD LUX 10/06 SEK 1111.37 4.8 10.7 NS PF (LUX)-Asian Eq-Pca AS EQ LUX 10/06 USD 155.97 44.0 18.0 –20.7 n YUKI INTERNATIONAL LIMITED € Japan Equity A JP EQ IRL 10/05 JPY 11066.32 7.1 –12.7 –27.9 Flexible Bond Fd -C- NO BD LUX 10/06 SEK 21.35 2.3 5.8 4.4 actual outlays have reached 2 that way, policy makers have learned in to aid poorer countries, while The IMF has a fine line to walk. special recession measures. PF (LUX)-Biotech-Pca OT EQ LUX 10/05 USD 286.35 0.1 –13.1 –9.0 Japan Equity B JP EQ IRL 10/05 JPY 11778.15 7.6 –12.2 –27.5 Flexible Bond Fd -D- NO BD LUX 10/06 SEK 11.68 2.3 5.8 4.4 Tel +44-207-269-0203 www.yukifunds.com PF (LUX)-CHF Liq-Pca CH MM LUX 10/05 CHF 124.22 0.2 0.4 1.2 trillion. “Overall, it is fair to say the lessons from the 1990s, when Japan the International Monetary Fund Its response to the 1997 Asian crisis PacBasn (Ex-Jap) Eq A AS EQ IRL 10/05 USD 2090.12 62.5 26.4 –12.5 PF (LUX)-CHF Liq-Pdi CH MM LUX 10/05 CHF 93.76 0.2 0.4 1.2 PacBasn (Ex-Jap) Eq B AS EQ IRL 10/05 USD 2227.41 63.3 27.2 –12.0 n SEB Sicav 1 n YMR-N Series rescue measures have contributed waited while its economy stum- bailed out several countries, was criticized for the extent to ‘The new normal’ PF (LUX)-Digital Comm-Pca OT EQ LUX 10/05 USD 107.98 31.1 22.6 –10.1 Pan European Eq A EU EQ IRL 10/05 EUR 906.86 26.2 –5.2 –20.9 Choice Emerging Mkts Fd GL EQ LUX 10/06 USD 2.52 59.7 23.7 –12.7 YMR-N Growth Fund OT OT IRL 10/06 JPY 8666.00 0.7 –13.8 –33.8 to an avoidance of ‘worst-case bled, and took action only in small such as Iceland and Serbia. which it pressed countries there Everybody is wondering how PF (LUX)-East Eu-Pca EU EQ LUX 10/05 EUR 272.17 101.9 0.1 –25.2 Pan European Eq B EU EQ IRL 10/05 EUR 965.35 26.8 –4.6 –20.4 Eastern Europe Fd OT OT LUX 10/06 EUR 2.38 36.6 –7.1 –21.9 YMR-N Small Cap Fund OT OT IRL 10/06 JPY 6853.00 6.8 6.9 –32.1 PF (LUX)-Emg Mkts-Pca GL EQ LUX 10/06 USD 492.54 58.8 17.7 –18.3 US Equity A US EQ IRL 10/05 USD 814.08 21.7 –2.7 –18.0 scenarios,’” the report says. steps that weren’t enough to shake to open their economies and make long the recession will last, “under n SEB Sicav 2 n Yuki 77 Series PF (LUX)-Eu Indx-Pca EU EQ LUX 10/05 EUR 93.83 21.7 –5.1 –19.3 US Equity B US EQ IRL 10/05 USD 870.37 22.2 –2.1 –17.5 Yuki 77 General JP EQ IRL 10/06 JPY 5881.00 –0.4 –16.9 –34.2 Other actions included inter- the malaise for a decade. ‘On a roll’ other structural reforms. This the quiet assumption that every- PF (LUX)-EUR Bds-Pca EU BD LUX 10/05 EUR 385.12 3.0 5.1 3.1 US Small Cap A US EQ IRL 10/05 USD 1205.88 19.9 –4.6 –19.6 Choice Asia SmCap exJpn AS EQ LUX 10/06 SEK 26.41 57.4 27.8 –15.9 Eastern Europe SmCap Fd OT OT LUX 10/06 EUR 2.41 80.5 5.3 –22.7 Yuki 77 Growth JP EQ IRL 10/06 JPY 5582.00 –5.6 –27.9 –37.8 PF (LUX)-EUR Bds-Pdi EU BD LUX 10/05 EUR 293.07 3.0 5.1 3.1 US Small Cap B US EQ IRL 10/05 USD 1290.09 20.5 –4.1 –19.1 est-rate cuts by central banks, The downturn even infected The IMF “hit on a real roll for time, the conditions attached to thing will go back to normal,” Mr. Europe Chance/Risk Fd EU EQ LUX 10/06 EUR 988.24 26.7 –7.8 –26.9 PF (LUX)-EUR Cp Bd-Pca EU BD LUX 10/05 EUR 145.33 16.3 16.5 4.9 n Yuki Chugoku Series PF (LUX)-EUR Cp Bd-Pdi EU BD LUX 10/05 EUR 102.17 16.3 16.5 4.9 n SEB ASSET MANAGEMENT S.A. Listed Private Equity -C- OT OT LUX 10/06 EUR 124.86 48.9 –34.8 NS starting last October, when the economies that had never touched itself,” says Alexei Monsarrat, its loans are aimed at getting von Bismarck adds. “The key Yuki Chugoku Jpn Gen JP EQ IRL 10/06 JPY 6300.00 1.0 –15.5 –33.6 PF (LUX)-EUR HiYld-Pca EU BD LUX 10/05 EUR 139.21 54.2 15.2 –2.6 www.seb.se Listed Private Equity -IC- OT OT LUX 10/06 EUR 73.19 74.0 –23.6 NS Listed Private Equity -ID- OT OT LUX 10/06 EUR 71.01 69.1 –25.8 NS Yuki Chugoku JpnLowP JP EQ IRL 10/06 JPY 7719.00 –5.8 –9.5 –29.3 Frankfurt-based European Central toxic securities derivatives. director of the global business countries away from the imbal- question isn’t when the recession PF (LUX)-EUR HiYld-Pdi EU BD LUX 10/05 EUR 80.71 54.2 15.2 –2.6 Nordic Small Cap -C- OT OT LUX 10/06 EUR 120.12 NS NS NS PF (LUX)-EUR Liq-Pca EU MM LUX 10/05 EUR 135.89 0.9 1.7 2.7 n SEB Fund 1 n Yuki Daishi Series Bank, and the central banks of Except for the U.S., most and economics program at the ances — such as large public debt will end, but what will the new Nordic Small Cap -IC- OT OT LUX 10/06 EUR 120.42 NS NS NS PF (LUX)-EUR Liq-Pdi EU MM LUX 10/05 EUR 97.93 0.9 1.7 2.7 Asset Sele C EUR OT OT LUX 10/06 EUR 14.12 –1.1 12.8 11.8 Yuki Daishi General JP EQ IRL 10/06 JPY 6329.00 –6.5 –21.7 –35.7 the U.S., U.K., Switzerland, Canada, countries have adopted an export- Atlantic Council of the U.S., a — that made them vulnerable. normal look like.” PF (LUX)-EUR Sov Liq-Pca OT OT LUX 10/05 EUR 102.38 0.5 1.2 NS Asset Sele C H-CHF OT OT LUX 10/06 CHF 97.99 NS NS NS n SEB Sicav 3 Asset Sele C H-GBP OT OT LUX 10/06 GBP 99.12 NS NS NS n Yuki Hokuyo Japan Series PF (LUX)-EUR Sov Liq-Pdi OT OT LUX 10/05 EUR 101.02 0.5 1.2 NS Asset Sele Defensive Acc -A-OT OT LUX 10/06 SEK 79.05 –1.8 –15.6 –14.7 Often, the reason a country is Two things are becoming clear: Asset Sele C H-JPY OT OT LUX 10/06 JPY 9831.70 NS NS NS Yuki Hokuyo Jpn Gen JP EQ IRL 10/06 JPY 4295.00 –5.6 –21.9 –35.5 PF (LUX)-Europ Eq-Pca EU EQ LUX 10/05 EUR 381.69 23.6 –6.7 –24.0 Asset Sele Defensive Acc EUROT -C- OT LUX 10/06 EUR 100.90 NS NS NS Asset Sele C H-NOK OT OT LUX 10/06 NOK 113.08 –0.5 NS NS Yuki Hokuyo Jpn Inc JP EQ IRL 10/06 JPY 5006.00 –5.2 –21.0 –29.0 The consumer-driven growth of PF (LUX)-EuSust Eq-Pca EU EQ LUX 10/05 EUR 123.24 20.9 –5.4 –21.8 Asset Sele Defensive Acc SEKOT -C- OT LUX 10/06 SEK 100.90 NS NS NS Asset Sele C H-SEK OT OT LUX 10/06 SEK 141.72 –1.6 13.4 12.2 Yuki Hokuyo Jpn Sm Cap JP EQ IRL 10/06 JPY 5018.00 6.7 6.9 NS PF (LUX)-Gl Em Dbt-Pca GL BD LUX 10/05 USD 242.71 26.7 25.2 10.8 Asset Sele Defensive Acc USDOT -C- OT LUX 10/06 USD 102.06 NS NS NS the U.S. and the export-driven Asset Sele C H-USD OT OT LUX 10/06 USD 98.99 NS NS NS PF (LUX)-Gl Em Dbt-Pdi GL BD LUX 10/05 USD 165.11 26.7 25.2 10.7 Asset Sele Defensive Inc -D-OT OT LUX 10/06 SEK 72.22 –1.8 –15.7 –15.9 n Yuki Mizuho Series Asset Sele D H-SEK OT OT LUX 10/06 SEK 133.00 –1.6 NS NS growth of much of the rest of the PF (LUX)-Gr China-Pca AS EQ LUX 10/06 USD 321.10 48.1 24.4 –16.0 Asset Sele Opp C H NOK OT OT LUX 10/06 NOK 106.12 NS NS NS Yuki Mizuho Gen Jpn III OT OT IRL 10/06 JPY 4050.00 –4.7 –25.4 –38.5 “The question isn’t when Choice Global Value -C- GL EQ LUX 10/06 SEK 71.91 17.6 –8.7 –26.0 PF (LUX)-Indian Eq-Pca EA EQ LUX 10/06 USD 347.21 78.2 32.3 –12.6 Asset Sele Opp C H SEK OT OT LUX 10/06 SEK 105.05 NS NS NS Yuki Mizuho Jpn Dyn Gro OT OT IRL 10/06 JPY 4424.00 –1.5 –23.8 –38.1 world are likely to evolve into what Choice Global Value -D- OT OT LUX 10/06 SEK 68.90 17.6 –8.7 –26.0 PF (LUX)-Jap Index-Pca JP EQ LUX 10/06 JPY 8425.23 2.7 –17.1 –27.5 Asset Sele Opp IC EUR OT OT LUX 10/06 EUR 105.90 NS NS NS Yuki Mizuho Jpn Exc 100 OT OT IRL 10/06 JPY 6319.00 3.6 –17.1 –33.5 the recession will end, Choice Global Value -I- OT OT LUX 10/06 EUR 6.26 25.9 –13.1 –29.5 economists hope will be a health- PF (LUX)-Jp Eq Sel-Ica JP EQ LUX 10/06 JPY 7454.99 1.5 –20.5 –31.7 Asset Sele Opp ID H GBP OT OT LUX 10/06 GBP 106.26 NS NS NS Yuki Mizuho Jpn Gen OT OT IRL 10/06 JPY 8038.00 0.2 –16.4 –34.5 Choice Japan Fd -C- OT OT LUX 10/06 JPY 45.68 1.0 –17.6 –29.1 PF (LUX)-Jp Eq Sel-Pca JP EQ LUX 10/06 JPY 7241.52 1.0 –21.0 –32.1 Asset Sele Opp ID H SEK OT OT LUX 10/06 SEK 105.84 NS NS NS Yuki Mizuho Jpn Gro OT OT IRL 10/06 JPY 6057.00 –3.1 –15.5 –35.5 Choice Japan Fd -D- OT OT LUX 10/06 JPY 41.07 1.0 –17.6 –29.0 but what will the new ier, more sustainable mix of PF (LUX)-JpEq130/30-Pca JP EQ LUX 10/06 JPY 4239.71 7.5 –13.3 –27.3 Asset Sele Original C EUR OT OT LUX 10/06 EUR 103.53 NS NS NS Yuki Mizuho Jpn Inc OT OT IRL 10/06 JPY 7226.00 –9.1 –22.4 –32.1 Choice Jpn Chance/Risk JP EQ LUX 10/06 JPY 47.45 4.5 –17.6 –31.6 Asset Sele Original D GBP OT OT LUX 10/06 GBP 103.99 NS NS NS consumption and exports all PF (LUX)-MidEast&NorAfr-PcaOT OT LUX 10/05 USD 50.95 NS NS NS Yuki Mizuho Jpn Lg Cap OT OT IRL 10/06 JPY 4832.00 –3.0 –20.1 –33.4 Choice NthAmChance/Risk US EQ LUX 10/06 USD 3.74 31.0 –3.0 –17.0 Asset Sele Original ID GBP OT OT LUX 10/06 GBP 103.74 NS NS NS PF (LUX)-Pacif Idx-Pca AS EQ LUX 10/06 USD 252.86 56.8 14.8 –13.5 Yuki Mizuho Jpn LowP OT OT IRL 10/06 JPY 11366.00 0.3 –3.2 –25.5 normal look like.” Ethical Europe Fd OT OT LUX 10/06 EUR 1.85 21.5 –9.3 –25.3 around. And emerging markets are PF (LUX)-Piclife-Pca CH BA LUX 10/05 CHF 768.78 11.2 1.6 –6.8 Yuki Mizuho Jpn PGth OT OT IRL 10/06 JPY 7552.00 –1.2 –18.0 –36.7 Europe 1 Fd OT OT LUX 10/06 EUR 2.67 25.2 –7.1 –25.0 PF (LUX)-PremBrnds-Pca OT EQ LUX 10/05 EUR 57.92 30.4 2.0 –17.2 Yuki Mizuho Jpn SmCp OT OT IRL 10/06 JPY 7026.00 14.6 13.6 –31.0 coming into their own politically. Europe 3 Fd EU EQ LUX 10/06 EUR 3.77 22.2 –9.5 –26.1 PF (LUX)-Rus Eq-Pca OT OT LUX 10/05 USD 54.64 137.5 16.4 NS Yuki Mizuho Jpn Val Sel OT OT IRL 10/06 JPY 5388.00 3.8 –13.1 –29.2 “Clearly there is going to be a Global Chance/Risk Fd GL EQ LUX 10/06 EUR 0.56 16.6 –8.0 –20.4 Yuki Mizuho Jpn YoungCo OT OT IRL 10/06 JPY 2897.00 21.4 2.7 –34.6 “in trouble is there are strong PF (LUX)-Security-Pca GL EQ LUX 10/05 USD 91.18 25.8 10.2 –13.1 Global Fd -C- OT OT LUX 10/06 USD 2.03 19.3 –5.6 –20.1 shift where the share of consump- PF (LUX)-Sm Cap Eu-Pca EU EQ LUX 10/05 EUR 429.76 30.6 –0.3 –20.4 Global Fd -D- OT OT LUX 10/06 USD 1.27 19.3 NS NS n Yuki Nishi Nippon City Japan Series interest groups who have con- PF (LUX)-US Eq-Ica US EQ LUX 10/05 USD 97.25 17.2 –5.8 –14.9 Nordic Fd OT OT LUX 10/06 EUR 5.25 28.2 8.6 –16.0 Yuki Nishi-Nippon Cty GeneralJP EQ IRL 10/06 JPY 4651.00 3.3 –20.6 –36.3 sumed resources in one way or tion to GDP in the U.S. will shrink,” PF (LUX)-USA Index-Pca US EQ LUX 10/05 USD 84.35 14.7 –6.6 –17.4 n THE NATIONAL INVESTOR says Christian Menegatti, head of PF (LUX)-USD Gov Bds-Pca US BD LUX 10/05 USD 517.18 –2.5 5.0 6.3 n SEB Fund 2 PO Box 47435, Abu Dhabi, UAE Web:www.tni.ae n Yuki Shizuoka Japan Series another,” says Raghuram Rajan, PF (LUX)-USD Gov Bds-Pdi US BD LUX 10/05 USD 379.50 –2.4 5.0 6.3 Choice Asia ex. Japan -C- OT OT LUX 10/06 USD 6.93 50.9 26.3 –15.5 MENA Real Estate Fund OT OT BMU 09/24 USD 1076.20 14.5 NS NS Yuki Shizuoka General Japan JP EQ IRL 10/06 JPY 5066.00 –0.6 –18.0 –36.3 finance professor at the University global economic research at RGE Monitor, an economic consultancy of Chicago Booth School of Business Advertisement [ ALTERNATIVE INVESTMENT FUNDS www.wsj.com/funddata ] Advertisement and IMF chief economist from in New York. “At the same time, emerging markets will want to 2003 to 2006. “Now you have to 12-month and 2-year returns may be calculated over 11- and 23-month NAV — %RETURN — NAV — %RETURN — upset those groups. shift from export-led growth to 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 NAV — %RETURN — INDICES more domestic consumption.” FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR Special Opp USD OT OT CYM 09/18 USD 90.23 13.4 NS NS n INTEGRATED ALTERNATIVE INVESTMENTS, TEL: +44 (0)20 75149200 “You have to be careful when Email: [email protected] - Website: www.integratedai.com n HSBC Portfolio Selection Fund The change had already begun n ALEXANDRA INVESTMENT MANAGEMENT Altipro OT OT FRA 09/30 EUR 194.95 NS NS NS NAV % RETURN the IMF is too friendly. If nobody GH Fund AP OT OT JEY 05/22 EUR 123.47 3.5 –13.4 –3.8 FUND NAME GF DATE CR NAV 1-WK 1-MO 1-Q 1-YR 2-YR Alexandra Convertible Bond FundOT I, OT Ltd. VGB (Class 08/31 A) USD 1439.79 48.6 44.2 NS Integrated European Fd EUR OT OT CYM 07/31 EUR 150.94 1.3 –3.2 –0.9 before the crisis hit, with emerging GH Fund CHF Hdg OT OT JEY 09/18 CHF 108.85 9.0 NS NS complains, that means it isn’t Integrated Multi St N EUR OT OT VGB 06/30 EUR 100.26 NS NS NS n ARIX ABSOLUTE RETURN INVESTABLE INDEX GH Fund EUR Hdg (Non-V) OT OT JEY 05/22 EUR 111.63 2.9 –15.9 –5.9 Integrated Multi St N GBP OT OT VGB 06/30 GBP 100.52 NS NS NS markets accounting for half of GH Fund GBP Hdg OT OT JEY 09/18 GBP 129.52 9.9 NS NS Feri Institutional Advisors, www.feri.de being tough enough.” Integrated Multi St N USD OT OT VGB 06/30 USD 99.97 NS NS NS ARIX Composite Gross USD OT 09/30 USD 1378.10 3.2 3.2 2.6 –18.0 –7.1 GH Fund Inst EUR OT OT JEY 05/29 EUR 91.86 10.0 –10.4 NS Integrated Strategic Fund-MSOT Z EUR OT VGB 06/30 EUR 100.24 NS NS NS world economic growth, says Dr. GH Fund Inst USD OT OT JEY 09/18 USD 109.49 11.0 NS NS GH FUND S EUR OT OT CYM 09/18 EUR 125.14 10.7 NS NS NAV — %RETURN — Rajan of the University of Chicago. FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR Exit strategies GH FUND S GBP OT OT JEY 09/18 GBP 129.70 10.3 NS NS The other big shift has been GH Fund S USD OT OT CYM 09/18 USD 146.89 11.3 NS NS As economies around the world n CAPITAL MANAGEMENT ADVISORS GH Fund USD OT OT GGY 09/18 USD 268.68 10.2 NS NS n SEB KEY Market Independent II stagger slowly back to their feet, that the crisis discussions among Phone Number: +1 441 295 59 29 Hedge Investments OT OT JEY 08/21 USD 134.41 8.5 NS NS CMA Dynamic OT OT BHS 08/31 USD 1355.45 0.5 4.1 5.9 Leverage GH USD OT OT GGY 09/18 USD 116.57 19.5 NS NS Key Market Independent II EUROT -RC- OT LUX 08/31 EUR 94.41 11.4 –1.8 NS policy makers have moved from CMA MultHdge Arbtrge OT OT CYM 07/31 USD 1711.00 –1.7 –9.0 –5.8 MultiAdv Arb CHF Hdg OT OT JEY 09/18 CHF 91.97 9.5 NS NS Key Market Independent II SEKOT -I- OT LUX 08/31 SEK 91.67 11.6 –2.2 NS it’s time to start thinking about exit n INVENTUM ASSET MANAGEMENT S.A. the Group of Eight big industrial CMA MultHdge Balncd OT OT CYM 07/31 USD 1355.67 0.4 4.8 5.8 MultiAdv Arb EUR Hdg OT OT JEY 09/18 EUR 99.86 10.5 NS NS strategies to unwind the exceptional CMA MultHdge Growth OT OT CYM 08/31 USD 1671.37 2.7 7.0 6.4 MultiAdv Arb GBP Hdg OT OT JEY 09/18 GBP 107.67 11.1 NS NS [email protected] n SEB KEY Recovery nations to the Group of 20, which CMA MultiHdge Lvrgd OT OT CYM 08/31 USD 942.93 –0.3 1.6 6.7 MultiAdv Arb S EUR OT OT CYM 09/18 EUR 106.41 11.2 NS NS Tel. +7 495 792 5595 www.inventumcapital.com Key Recovery -IC- OT OT LUX 08/31 EUR 86.51 8.7 –10.6 NS government participation in, or MultiAdv Arb S GBP OT OT CYM 09/18 GBP 111.35 11.7 NS NS Inv Absolute Return Fund OT OT BMU 08/31 USD 132.67 31.1 NS NS n D'AURIOL FUNDS WWW.DAURIOL.BIZ Key Recovery -RC- OT OT LUX 08/31 EUR 85.92 8.3 –11.1 NS was created in 1999 to include key MultiAdv Arb S USD OT OT CYM 09/18 USD 121.70 12.4 NS NS control of, private-sector compa- 2 FUNDS OF FUNDS OF HEDGE FUNDS MultiAdv Arb USD OT OT GGY 09/18 USD 188.27 11.5 NS NS developing countries, such as China D'Auriol Alt Non-Lev A EU OT CYM 08/31 EUR 99.61 1.2 –18.1 –10.4 nies, the special guarantees, the D'Auriol Opp F3 EUR EU MM CYM 08/31 EUR 984.58 –1.2 –21.0 –13.6 n HSBC Uni-folio and Brazil. The change — formally extremely low interest rates, the n Alpha AdvantEdge OT OT JEY 06/30 USD 111.58 4.2 –14.9 –7.1 HERMITAGE CAPITAL MANAGEMENT LTD. Asian AdbantEdge EUR OT OT JEY 08/28 EUR 98.11 10.6 NS NS cemented at the G-20 meeting last Tel: +7501 258 3160 www.hermitagefund.com Asian AdvantEdge OT OT JEY 08/28 USD 180.05 11.1 NS NS ramped-up government spend- The Hermitage Fund GL EQ JEY 09/04 USD 730.68 62.0 –43.7 –29.8 Emerg AdvantEdge OT OT JEY 08/28 USD 160.24 14.2 NS NS n MERIDEN GROUP month — is proof this recession n ing. “How do you unwind the n HORSEMAN CAPITAL MANAGEMENT LTD. Emerg AdvantEdge EUR OT OT JEY 08/28 EUR 89.25 13.6 NS NS Tel: + 376 741 175 Fax: + 376 741 183 Email: [email protected] SUPERFUND ASSET MANAGEMENT GMBH “is clearly something the whole T: +44(0)20 7838 7580, F: +44(0) 20 7838 7590, www.horsemancapital.com Europ AdvantEdge EUR OT OT JEY 08/28 EUR 128.09 11.1 NS NS Antanta Combined Fund EE EQ AND 09/25 USD 348.93 81.6 –8.9 –34.1 For information about open funds, please contact us on Tel: +43 1 24700 massive liquidity that’s been Europ AdvantEdge USD OT OT JEY 08/28 USD 135.81 11.3 NS NS Horseman EmMkt Opp EUR GL EQ GBR 08/28 EUR 174.99 –18.5 NS NS Antanta MidCap Fund EE EQ AND 09/25 USD 638.37 120.3 –30.7 –36.2 www.superfund.com *Closed for New Investments Japan AdvantEdge JPY OT OT JEY 06/30 JPY 7913.02 –2.1 –10.8 –8.6 global economy is thinking about,” Horseman EmMkt Opp USD GL EQ USA 08/31 USD 176.10 –19.8 –8.5 6.8 Meriden Opps Fund GL OT AND 07/22 EUR 74.42 –14.5 –28.2 NS Superfund Cayman* OT OT CYM 09/29 USD 48.01 –42.3 –6.5 7.4 injected into the system before Japan AdvantEdge USD OT OT JEY 06/30 USD 92.51 –1.7 –9.6 –6.5 Horseman EurSelLtd EUR EU EQ GBR 08/28 EUR 184.13 –12.0 NS NS Meriden Protective Div OT OT AND 11/24 EUR 78.88 –2.8 NS NS Mr. Menegatti says. Lvgd Alpha AdvantEdge OT OT JEY 06/30 USD 91.87 7.0 –33.1 –19.2 Superfund GCT USD* OT OT LUX 09/29 USD 2414.00 –33.9 –7.9 4.0 you have long-term problems Horseman EurSelLtd USD EU EQ GBR 08/28 USD 190.87 –12.2 NS NS Real AdvantEdge EUR OT OT NA 08/28 EUR 104.84 6.1 NS NS Superfund Green Gold A (SPC)OT OT CYM 09/29 USD 959.61 –17.5 4.7 12.8 Horseman Glbl Ltd EUR GL EQ CYM 08/31 USD 390.00 –20.8 –4.7 7.5 Real AdvantEdge USD OT OT NA 08/28 USD 104.88 6.3 NS NS Superfund Green Gold B (SPC)OT OT CYM 09/29 USD 973.52 –27.8 4.1 11.8 with inflation,” says Max von Horseman Glbl Ltd USD GL EQ CYM 08/31 USD 390.00 –20.8 –4.7 7.5 Trading Adv JPY OT OT NA 08/28 JPY 9549.04 NS NS NS n OTHER FUNDS Superfund Q-AG* OT OT AUT 09/29 EUR 6891.00 –21.4 0.3 6.1 n Trading AdvantEdge OT OT GGY 08/28 USD 144.97 –4.4 NS NS Bismarck, director and head of HSBC ALTERNATIVE INVESTMENTS LIMITED For information about these funds, please contact us on Tel: +44 (0) 207 842 9694/9633 Trading AdvantEdge EUR OT OT GGY 08/28 EUR 131.85 –4.2 NS NS n WINTON CAPITAL MANAGEMENT LTD T +44 20 7860 3074 F + 44 20 7860 3174 www.hail.hsbc.com Medinvest Plc Dublin OT OT IRL 07/31 USD 1299.94 NS –8.4 –4.9 investors at the New York-based HSBC Absolute Companies Trading AdvantEdge GBP OT OT GGY 08/28 GBP 139.01 –4.5 NS NS Tel: +44 (0)20 7610 5350 Fax: +44 (0)20 7610 5301 World Economic Forum USA. Global Absolute OT OT GGY 09/11 GBP 1.03 9.1 NS NS US AdvantEdge OT OT JEY 06/30 USD 105.30 2.9 –19.3 –7.5 n SEB ALTERNATIVE INVESTMENT Winton Evolution EUR Cls H OT OT VGB 08/31 EUR 1195.14 –7.8 –8.5 2.7 Global Absolute EUR OT OT NA 09/11 EUR 1.52 9.8 NS NS SEB KEY Europe Equity Long Short Winton Evolution GBP Cls G OT OT CYM 08/31 GBP 1176.95 –7.9 –8.0 3.5 The more immediate question Global Absolute USD OT OT GGY 09/11 USD 1.93 9.4 NS NS Key Europe Long/Short EUR -IC-OT OT LUX 08/31 EUR 90.02 6.0 –5.8 NS Winton Evolution USD Cls F OT OT CYM 08/31 USD 1163.50 –8.2 –8.6 2.6 Key Europe Long/Short EUR -RC-OT OT LUX 08/31 EUR 89.39 5.6 –6.4 NS is how to pull out of direct n HSBC ALTERNATIVE STRATEGY FUND Winton Futures EUR Cls C OT OT VGB 08/31 EUR 190.12 –7.7 2.5 12.0 Special Opp EUR OT OT CYM 09/18 EUR 85.89 12.5 NS NS n SEB KEY Hedge Winton Futures GBP Cls D OT OT VGB 08/31 GBP 205.01 –7.6 3.1 13.2 investments in the private Special Opp Inst EUR OT OT CYM 09/18 EUR 81.01 12.8 NS NS Key Hedge EUR -IC- OT OT LUX 08/31 EUR 100.36 10.7 2.2 NS Winton Futures JPY Cls E OT OT VGB 08/31 JPY 13445.13 –8.9 –0.3 9.0 sector without new turmoil. Special Opp Inst USD OT OT CYM 09/18 USD 91.95 13.9 NS NS Key Hedge EUR-RC- OT OT LUX 08/31 EUR 99.69 10.3 1.7 NS Winton Futures USD Cls B OT OT VGB 08/31 USD 673.80 –8.1 1.7 11.9 “We think that in the end 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] 28 WEDNESDAY, OCTOBER 7, 2009 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. WEDNESDAY, OCTOBER 7, 2009 9

THE INTERNATIONAL INVESTOR rtising Section Japan sees limits to strong yen Japan’s banks Reducing risk through coordinated government regulations raise money, By Catherine Bolgar compensation needs to be much He adds that proposals to set Some observers fear that politi- regulations is important, says better aligned with the risks traders higher capital standards for cal will to enact tough regulations Max von Bismarck, director and Finance Minister Fujii also supports the U.S. dollar as the key reserve currency for now ubbles grow, bubbles are taking,” says Charles Dallara, certain “systemically relevant” will wilt as the global economy head of investors at the World still need more pop, crises often follow. managing director of the Institute firms would essentially brand picks up again. Economic Forum USA in New By Alison Tudor Will we ever learn? of International Finance, a them as “too big to fail.” Instead, York. “If you don’t get to a By Atsuko Fukase Standing fast Though some econo- Washington-based industry group. he says, the integrated and inter- Productive investment certain level of coordination you Japanese Finance Minister Hi- B mists are working to better “The danger is that if we get all connected financial world needs “In the U.S. and Europe and just see risks shifting to other rohisa Fujii on Tuesday defended How many yen one dollar buys TOKYO—Despite raising more identify bubbles before they get government intervention in for- than $20 billion from stock sales over these layers coming at once we a cross-border resolution system most middle-income countries, environments” with banks play- ¥88 eign-exchange markets in cases of the past year, Japan’s big lenders and dangerously big, nobody enjoys the financial sector is politically ing the regulatory differences “outrageously reckless” move- brokers may have to tap the capital wise words from partypoopers. dominant and extremely power- between countries. So policy makers try to find ways ments, but he suggested the cur- 90 markets for more funds in the next six “At a certain level, there is agreement in the financial ful,” says Mark Weisbrot, co-director The real picture of postcrisis rent strength of the yen is consis- months, as regulators globally push to keep the party from getting out industry that capital needs to be increased, leverage of the Center for Economic and regulation won’t be clear for several tent with acceptable market for tighter capital requirements. of hand in the first place. Policy Research, a Washington years. And new regulations won’t activity. 92 Japan’s largest brokerage firm “At the very least, you should needs to be reduced and compensation needs to be think tank. “Economics 101 is “mean crises won’t happen any- “I for one do not believe that au- by revenue, Nomura Holdings Inc., close some stable doors,” to pre- thorities should intervene in for- was the latest in a long line undertak- much better aligned with the risks traders are taking.” for banks to act as a financial more,” says Christian Menegatti, vent a repeat of the same problems, intermediary that channels sav- head of global economic research eign-exchange markets in an exces- 94 ing a capital raising this year, after it sive way,” he said in an interview. brought in $4.8 billion, just months says Raghuram Rajan, finance ings into productive investment. at RGE Monitor, an economic “However, if forex market move- after raising $3 billion. professor at the University of may run the risk of nearly suf- that directly addresses this issue. That’s obviously not what consultancy in New York. “But ments are outrageously reckless, 96 But with the Group of 20 nations Chicago Booth School of Business. focating the ability of banks to In addition, he laments the lack was going on in most of the you don’t have to be a visionary or acting without any order, then I in September agreeing to a tighten- Many of those stable doors are use their balance sheets to make of global accounting standards — a financial activity that preceded to see that we won’t see the kinds think some kind of measures are ing of capital requirements, and Jap- in the financial sector, which did loans at a critical time in the key issue in the debate about how this crisis.” of leverage or the kinds of deriva- needed.” 98 anese financial institutions trailing a bad job of managing risk. Details economic recovery.” much to raise capital requirements. A unified face for new tives that led up to this crisis.” He added, “Looking at the cur- July Aug. Sept. Oct. their Western rivals in terms of capi- rent situation, I don’t regard it as tal, Nomura won’t be the last, ana- of proposed regulations for the being extremely abnormal.” Note: scale is inverted to show the strength lysts say. Next in line, they say, are sector vary among countries, but Mr. Fujii also came to the de- of the yen Japan’s major banks: Mitsubishi broad outlines are becoming clear: fense of the dollar, which he ex- Source: Thomson Reuters via WSJ Market UFJ Financial Group Inc., Sumit- • Higher capital requirements for Data Group pects will remain the key reserve omo Mitsui Financial Group Inc. financial institutions. Photo: Alfie Goodrich for The Wall Street Mizuho Financial Group currency for some time to come. and Inc. • More stringent leverage The strong yen—a hot-button in Journal “Banks will likely try to raise Japan and in currency markets— [funds] as early as they can and as requirements for banks. has provided an early test for the ad- much as they can,” said Shinichi Ina, • A crackdown on derivatives that are far removed from the ministration of Prime Minister Yuko Japanese Finance Minister an analyst with Credit Suisse. Hatoyama. His Democratic Party of Hirohisa Fujii leaves the door The firms declined to comment underlying instrument, includ- Japan took the reins of government open to intervention but so far on their individual plans. The G-20 ing requiring banks to keep last month following its August land- has allowed Japan’s currency also hasn’t settled on details, so it is part of the risk of underlying unclear what new standards might slide victory. But critics point out it to appreciate. assets, to encourage them to has never held power in its 11 years need to be met. of existence and may lack necessary Japan’s banks tend to have lower maintain prudent standards. experience. core Tier 1 capital ratios, which mea- • Reforms on financial-sector pay Mr. Fujii, 77 years old, offers exports more expensive abroad quite abnormal and something we jor exporter. “The U.S. dollar and sure a bank’s financial strength, than to rein in the bonuses blamed significant government experi- and reduces profits generated have to correct. We are now work- the [Chinese] renminbi are Western peers. For instance, MUFG, for excessive risk-taking. ence, including a previous stint as overseas. Japan is heavily depen- ing on a major economic policy pegged, more or less, and because SMFG and Mizuho have core Tier 1 finance minister in 1993 and 1994. dent on exporting industries such shift.” of that China is in an advanta- capital ratios of 6.3%, 5.5% and 3.4%, Two sets of banks as autos and electronics. He batted away concerns that respectively, according to Credit But he has been criticized for talk- geous position,” he said. “It is espe- In the end, we’re likely to see ing too much about the yen. His in- Some economists say the he and his colleagues are falling be- cially favorable for Chinese Suisse estimates. In contrast, Tier 1 sistence that governments ought strong yen could kill Japan’s frag- hind schedule on identifying areas exports.” ratios at J.P. Morgan Chase & Co. “financial markets that operate a bit more simply,” says Alexei not to drive down their currencies ile export-led recovery from its where the government can trim Mr. Fujii said that he hasn’t dis- and Deutsche Bank AG are around to support their export industries worst recession in 60 years. Last spending in order to fund an ambi- cussed relative currency 8%, while Credit Suisse Group’s and Monsarrat, director of the global has emboldened yen buyers. He week Japanese car makers Toyota tious domestic stimulus package. strengths with his Chinese HSBC Holdings PLC’s exceed that. business and economics program has since indicated the govern- Motor Corp. and Honda Motor Co. “In addition to cutting wasteful counterparts. In the past year, Japan’s major at the Atlantic Council of the spending we are trying to reduce banks have raised about $19 billion by He said he believes the dollar’s U.S., a Washington think tank. He unnecessary spending. I believe issuing common shares to shore up weakness is only temporary. “I do suggests that we may end up with The strong yen—a hot-button in Japan we can be successful,” he said. their capital. MUFG, Japan’s largest not expect to reduce the amount of In terms of Japanese consum- bankby assets,raised more than $4 bil- two sets of banks: one which dollars in our reserves,” he said. and in currency markets—has provided an ers, Mr. Fujii said deflation re- lion in December. No. 2 Mizuho raised concentrates on old-school banking mains a major issue. “Deflation is Japan has the world’s second-larg- $6 billion in July, and No. 3 SMFG — collecting deposits and making est foreign-exchange reserves, be- early test for the administration of more of a concern” than inflation, raised more than $9 billion in June. loans — or which at least reins in he said. This stems from “Japa- hind China. While the government Among the big banks, MUFG is Prime Minister Yuko Hatoyama. doesn’t break out the holdings, a some of the more exotic trading; nese domestic consumers exces- the only one that can issue common and another which engages in the sively curbing their consump- large part of the $1 trillion re- shares this year, because of a lock-up more exotic, riskier but potentially tion,” he said. serves is believed to be in dollars. rule that prevents a Tokyo-listed ment might move in the event of a warned that the rising yen will Mr. Fujii returned from a Group Mr. Fujii said the economy has company from doing so within 180 more lucrative aspects of the severe disruption. make it harder for them to return of Seven meeting in Istanbul over registered positive signs, noting days of its last issuance. business. “It’s a tradeoff between When asked on Tuesday about to profitability. the weekend, where he said the dol- Japan’s gross domestic product The Nikkei Stock Average of 225 safety and return,” he says. the level at which Japan might in- On the other hand, a stronger lar’s weakness—the root cause of grew an annualized 2.3% in the companies is up about 38% in the past Another idea is to require banks tervene to curb the yen’s strength, yen strengthens the purchasing the yen’s strength—was dis- three months through June, rising seven months, making it a good envi- to draw up their own “funeral he said: “There is a big, gigantic power of Japanese consumers— cussed. He said European coun- for the first time in five quarters. ronment to raise funds, analysts said. plans,” to avoid the kind of golden rule internationally that one of the stated goals of the DPJ. tries as well as Japan expressed But he was concerned about the But in the past month, worries that lengthy investigation regulators the minister in charge of Treasury “We shouldn’t be overly depen- concern about the dollar’s slide. state of the jobs market and a 36% banks will soon tap the markets have should make no reference to that dent on export growth,” he said. He noted the weakening of the decline in exports in August from a contributed to a fall in Japan banking faced in dismantling Lehman rate level.” “Recently 60% of Japanese GDP U.S. currencies against other cur- year earlier. “We are now entering shares. Those shares are down 13%, Brothers and to make it clear that A stronger yen makes Japanese growth came from exports. That is rencies helps China, another ma- into the moment of truth,” he said. compared with the Nikkei’s 5% drop. nobody is too big to fail. Such information would include subsidiaries, assets and liabilities Advertisement [ INTERNATIONAL INVESTMENT FUNDS www.wsj.com/funddata ] Advertisement in greater detail than now pro- vided. Banks aren’t likely to be 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 — pleased. “Complexity is a source FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR Real Estate Sec. B OT EQ LUX 10/05 USD 12.34 25.3 –7.2 –23.4 Andfs. Franca EU EQ AND 10/01 EUR 9.20 11.1 –8.9 –20.3 DJE-Alpha Glbl P EU BA LUX 10/06 EUR 167.41 8.8 0.6 –8.0 of profits and tax avoidance,” says Real Estate Sec. I OT EQ LUX 10/05 USD 14.44 26.9 –5.6 –22.0 Andfs. Japo JP EQ AND 10/01 JPY 496.72 13.3 –8.8 –23.7 DJE-Div& Substanz P GL EQ LUX 10/06 EUR 201.54 15.2 5.5 –8.5 Gl High Yield I US BD LUX 10/05 USD 4.21 53.8 23.1 2.1 Short Mat Dollar A US BD LUX 10/05 USD 7.17 9.2 0.5 –7.8 Dr. Rajan. Gl Value A GL EQ LUX 10/05 USD 10.62 25.1 –3.7 –26.0 Andfs. Plus Dollars US BA AND 10/01 USD 9.24 9.5 1.1 –7.4 DJE-Gold&Resourc P OT EQ LUX 10/06 EUR 156.76 19.9 18.7 –7.7 Short Mat Dollar A2 US BD LUX 10/05 USD 9.57 9.2 0.4 –7.9 DJE-Renten Glbl P EU BD LUX 10/06 EUR 129.28 8.0 8.7 2.9 Gl Value B GL EQ LUX 10/05 USD 9.78 24.1 –4.7 –26.8 Andfs. RF Dolars US BD AND 10/01 USD 11.35 11.1 8.4 0.1 Short Mat Dollar B US BD LUX 10/05 USD 7.17 8.8 0.0 –8.2 LuxPro-Dragon I AS EQ LUX 10/06 EUR 142.73 53.7 38.1 –13.5 Gl Value I GL EQ LUX 10/05 USD 11.27 25.8 –3.0 –25.5 Short Mat Dollar B2 US BD LUX 10/05 USD 9.54 8.9 0.0 –8.2 Andfs. RF Euros EU BD AND 10/01 EUR 10.79 20.5 11.0 –1.7 LuxPro-Dragon P AS EQ LUX 10/06 EUR 139.08 53.3 37.4 –14.6 India Growth A - OT OT LUX 10/05 USD 116.13 NS NS NS Short Mat Dollar I US BD LUX 10/05 USD 7.17 9.7 1.1 –7.2 Fragile time India Growth AX OT OT LUX 10/05 USD 101.45 75.6 37.8 –6.4 Andorfons EU BD AND 10/01 EUR 14.39 20.6 8.4 –4.1 LuxTopic-Aktien Europa EU EQ LUX 10/06 EUR 16.88 17.8 6.8 –5.2 India Growth B - OT OT NA 10/05 USD 121.95 NS NS NS Andorfons Alternative PremiumOT OT AND 08/31 EUR 96.82 4.8 –13.4 –7.6 LuxTopic-Pacific AS EQ LUX 10/06 EUR 14.46 59.8 6.5 –18.6 The banking sector has been India Growth BX OT OT LUX 10/05 USD 86.93 74.3 36.5 –7.3 Andorfons Mix 30 EU BA AND 10/01 EUR 9.38 15.9 –0.8 –10.7 India Growth I EA EQ LUX 10/05 USD 105.00 76.1 38.3 –6.1 less than enthusiastic about the Int'l Health Care A OT EQ LUX 10/05 USD 124.89 6.4 –9.3 –13.9 Andorfons Mix 60 EU BA AND 10/01 EUR 8.93 9.9 –11.0 –18.0 Int'l Health Care B OT EQ LUX 10/05 USD 105.60 5.6 –10.2 –14.7 changes, in part because regula- Int'l Health Care I OT EQ LUX 10/05 USD 136.20 7.0 –8.6 –13.2 n CHARTERED ASSET MANAGEMENT PTE LTD - TEL NO: 65-6835-8866 tions are likely to add to the cost Int'l Technology A OT EQ LUX 10/05 USD 98.20 34.2 7.7 –17.7 Fax No: 65-6835 8865, Website: www.cam.com.sg, Email: [email protected] Int'l Technology B OT EQ LUX 10/05 USD 85.30 33.2 6.7 –18.5 n BANC INTERNACIONAL D'ANDORRA. BANCA MORA. of business at an economically Int'l Technology I OT EQ LUX 10/05 USD 109.90 35.1 8.6 –17.0 Avgd. Meritxell 96, Andorra la Vella. Andorra. Ph. +376.884884 www.bibm.ad CAM-GTF Limited AS EQ MUS 09/30 USD 226807.10 68.1 22.1 –8.1 Japan Blend A JP EQ LUX 10/05 JPY 5594.00 4.2 –13.8 –30.5 Andfs. Anglaterra UK EQ AND 10/01 GBP 7.67 15.2 5.1 –10.1 n HERMES FINANCIAL MANAGEMENT (EGYPT) LIMITED, [email protected] fragile time. Japan Growth A JP EQ LUX 10/05 JPY 5542.00 –0.4 –15.2 –30.3 Andfs. Borsa Global GL EQ AND 10/01 EUR 6.11 5.4 –13.9 –21.0 n DJE INVESTMENT S.A. Tel: 9714 363 4041 *Middle East & Developing Africa Fund Japan Growth I JP EQ LUX 10/05 JPY 5692.00 0.2 –14.5 –29.7 Andfs. Emergents GL EQ AND 10/01 USD 15.75 57.5 12.7 –13.2 internet: www.dje.lu email: [email protected] phone:+00 352 269 2522 0 fax:+00 352 269EFG-Hermes 25252 Egypt GL EQ BMU 09/30 USD 43.50 25.8 –1.4 –10.8 “At a certain level, there is Japan Strat Value A JP EQ LUX 10/05 JPY 5616.00 8.9 –12.6 –31.1 Andfs. Espanya EU EQ AND 10/01 EUR 13.17 21.7 1.3 –11.9 EFG-Hermes MEDA* GL EQ BMU 08/31 USD 22.99 9.7 –31.7 –10.3 Japan Strat Value I JP EQ LUX 10/05 JPY 5755.00 9.6 –11.8 –30.5 Andfs. Estats Units US EQ AND 10/01 USD 13.86 13.6 –10.9 –17.3 DJE Real Estate P OT OT LUX 10/06 EUR 9.11 –5.8 –7.6 –3.5 agreement in the financial indus- Real Estate Sec. A OT EQ LUX 10/05 USD 13.47 26.2 –6.3 –22.7 Andfs. Europa EU EQ AND 10/01 EUR 7.49 15.5 –5.1 –18.6 DJE-Absolut P GL EQ LUX 10/06 EUR 191.14 9.1 –2.1 –11.4 Please turn to next page try that capital needs to be increased, 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] leverage needs to be reduced and 10 WEDNESDAY, OCTOBER 7, 2009 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. WEDNESDAY, OCTOBER 7, 2009 27 Special Advertising Section THE INTERNATIONAL INVESTOR Turkey retains investor confidence despite downturn FUND SCORECARD India Equity By Justin Keay Turkish liras. this “would strengthen investor UBS hires energy bankers “Turkey has been trying to act like confidence.” The tough fiscal Funds that invest primarily in the equities of Indian companies. At least 75% of total assets s the International a developed market with fiscal and policy that would be required is tis’s global head of oil and gas bank- year, including financial adviser to are invested in equities. Ranked on % total return (dividends reinvested) in U.S. dollars for Monetary Fund and monetary stimuli replacing the usual seen as counterproductive by Lender is rebuilding ing. Mr. Holley and many from his Atlas Energy Resources in its one year ending October 06, 2009 World Bank convene need for IMF support,” says Charles Turkish policy makers, who are 18-person team will now report to $1.8 billion merger with Atlas Amer- Leading 10 Performers

REUTERS/Fatih Saribas after losses of staff; for their autumn meeting Robertson, London-based head of opposed to large-scale tax Steve Trauber, the longtime global ica this summer and adviser to Ches- FUND FUND LEGAL % Return in $US ** A head of UBS’s energy group. The apeake Energy Corp. on its $588 mil- RATING NAME FUND MGM'T CO. CURR. BASE YTD 1-YR 2-YR 5-YR in Istanbul, Oct. 6-7, the mood emerging markets at Dutch bank increases and expenditure cuts. team leaves Fortis group has resigned from Fortis and lion joint venture in September with NS Cérès Monde Cérès Asset EURiFrance 76.01 59.46 –9.25 NS will be downbeat, despite recent ING Group. “So far the policy has Looking to 2010 and beyond, will start at UBS later this year. private-equity firm Global Infra- Indien A Management figures that suggest the U.S., Japan worked well — the lira has remained observers say an agreement with By Jeffrey McCracken The Fortis group specializes in structure Partners. And Jenny Strasburg NS Jupiter Jupiter Unit Trust GBPiUnited Kingdom 93.13 55.98 NS NS and much of the euro zone are stable and it has been able to roll the IMF would be useful. loans to speculative-grade firms, es- Including the Fortis hires, UBS India Managers Ltd showing early signs of recovery. over external debt.” “IMF support would lend pecially reserve-based lending in will have added more than a dozen UBS AG has recruited a team of which energy reserves are used as senior bankers in the U.S. since La- NS Neptune Neptune Investment GBPiUnited Kingdom 87.44 54.27–11.06 NS “Anyone who believes this is a Other indicators are also posi- credibility to the government India A Management Limited straightforward V-shaped recession is tive. Turkey’s stock market has program and help stabilize a oil-and-gas bankers from Dutch- collateral on loans. bor Day. The hiring spree comes af- based lender Fortis Bank AV, as the “The energy sector has been very ter several departures. In late June, 3 Jupiter JGF Jupiter Asset USDiLuxembrg 87.58 50.98 –7.62 24.29 kidding themselves — the road into been booming and three govern- fragile economic environment,” Swiss bank tries to rebuild its invest- resilient during the current eco- rival investment bank Jefferies India Select L USDManagement Ltd. 2010 and beyond remains bumpy for ment bond sales in August (totaling says Abdullah Akyuz, senior ment bank after a series of nomic downturn, and we expect it Group Inc. hired away about three 3 Jyske Invest Jyske Invest USDiDenmark 84.28 50.83 –9.57 23.47 most economies and many things $1.87 billion) were four times spokesman for Tusiad, the Istanbul- departures. will be one of the most active sec- dozen UBS employees, including the Indian Equities International can go wrong,” says Bob McKee, oversubscribed. The unveiling on based employers’ federation. He UBS will add eight senior bank- tors in mergers and acquisitions, bulk of its health-care investment- NS First State First State GBPiUnited Kingdom 90.21 48.48 –3.44 NS international economist at Indepen- Sept. 15 of the government’s believes that without an IMF ers from Fortis in Dallas, giving UBS and equity and debt financings as banking team, over a few days. UBS Indian SubcontinentInvestments A (UK) Ltd dent Strategy, a London-based upbeat economic plan for 2010- deal real GDP growth next year its first investment-banking office the economy recovers,” said Mr. later sued, calling the hiring a “mas- NS Manulife GF Manulife Global USDiLuxembrg 72.10 43.92–13.42 NS investment research house. 2012, amid confirmation that 2009 will be 2.5% rather than the there. Trauber. sive, premeditated raid.” The two India Equity AA Fund Heading up the group move is UBS has been involved in several sides settled their dispute but didn’t 3 UTI India UTI International GBPiMauritius 81.04 42.87 –2.90 32.23 Host country Turkey, however, inflation would be just 5.5%, was government forecast of 4.9%. Darrell Holley, who had been For- energy-related deals in the past disclose the terms. has many strengths that could generally well-received. Three days “Ankara is missing a good 1986 Shares Ltd help smooth its ride. As well as its later, ratings agency Standard & opportunity — it would get good NS iShares BSE Barclays Global HKDiHong Kong 77.46 42.04–11.96 NS flexible exchange rate, macroeco- Poor’s upgraded Turkey’s rating terms,” says Wolfango Piccoli, SENSEX India TrkrInvestors North Asia Ltd nomic strategy has been supported outlook from negative to stable. Turkey analyst at Eurasia, a New U.K. church is 5 Comgest Comgest Asset USDiIreland 82.57 40.52 –2.69 NS by the fact that Turkish banks York-based global political risk With no clear path to top, Growth India Management International L NOTE: Changes in currency rates will affect performance and rankings. Source: Morningstar, Ltd have been well-capitalized and Unemployment falls research and consulting firm. KEY: ** 2YR and 5YR performance is annualized 1 Oliver’s Yard, 55-71 City Road closely regulated since the finan- The government has also been However, Turkey’s government unlikely defender NA-not available due to incomplete data; London EC1Y 1HQ United Kingdom AmEx’s president resigns NS-fund not in existence for entire period www.morningstar.co.uk; Email: [email protected] cial crisis of 2000-2001 reduced eager to stress that privatization is confident that the country is Phone: +44 (0)203 107 0038; Fax: +44 (0)203 107 0001 their number to 50 from 80. is still on the agenda, with plans over the worst. As he unveiled By Jessica Papini dent, and a new No. 2 to Mr. of hedge funds Toxic-asset exposure is close to to sell power distribution and gas his medium-term economic plan, Chenault hasn’t been determined, a By David Walker zero, and the required capital Turkey’s stock market has been booming distribution plants as well as Economy Minister Babacan said American Express Co. said its person familiar with the situation adequacy ratio is 16% against a and three government bond sales in August power-generation plants. And economic growth would return president, Alfred F.Kelly Jr., will re- said. Several American Express ex- The Church of England has ANZ Bank could still snap up ecutives could be in line for the typical 11% in Central and Eastern there has been better news on next year and in 2011 would sign to look for the top job at an- emerged as an unlikely defender of other company after concluding he position. the hedge-fund industry against the Europe and 8% in Western were four times oversubscribed. the jobs front, with unemploy- accelerate on the back of its was unlikely to become chief execu- It isn’t clear how close Mr. Kelly prospect of new regulations from RBS’s Chinese operations Europe. “Off balance-sheet risk is ment figures for April to June stable financial system, tive at the giant credit- and charge- is to landing a CEO job. In an inter- the European Union. limited with no derivatives and no March. Certain sectors — such as meters. It has followed them showing a drop to 13.9% from with the private sector card issuer. nal memo, Mr. Chenault said Mr. Only last year, the Archbishop of By Lyndal McFarland some of RBS’s retail and commercial banking operations in Asia for subprime loans,” says Burak automotives where sales have since with additional measures the record 16.1% registered in leading the way. The 51-year-old Mr. Kelly joined Kelly “has agreed to stay on until York was calling hedge funds “bank robbers” for profiting from the fall MELBOURNE, Australia—Aus- $550 million, giving the Australian Tansan, executive vice president at fallen 50% in the past 18 months including new incentives for the previous quarter. the New York company in 1987 and early next year to continue to lead in bank stocks. tralia & New Zealand Banking bank what it described as a stepping Akbank, Turkey’s largest bank. — have been hit particularly investment (including cuts in Ankara, meanwhile, has held was in charge of AmEx’s global con- our transition to a bank holding Now, a group of six of the U.K.’s Group Ltd. may take another look at stone into the region. hard. Foreign direct investment corporate taxes of between 2% back from signing a long- sumer business for the past two company and to act as a consultant to me on a variety of business largest charitable foundations, in- Royal Bank of Scotland Group PLC’s Under that deal, ANZ will buy Regulatory foresight is predicted to fall below $10 and 10% depending on a firm’s anticipated new agreement with years. issues.” cluding the Church of England, has banking assets in China after Stan- RBS’s retail and commercial-bank- Little wonder that in Septem- billion (€6.84 billion) this year business), low interest loans for the IMF despite the fact “In the context of discussions AmEx became a bank holding told a House of Lords committee dard Chartered PLC pulled out of ing operations in Taiwan, Sin- we have had about longer-term ber, London-based Euromoney from $18.2 billion last year. small and medium-size enter- that Ali Babacan, company in November, giving it ac- that a proposed EU directive would talks to buy the operations, a spokes- gapore, Indonesia and Hong Kong, plans for the organization, Al made magazine voted Durmuz Yilmaz, The government’s focus has prises, and support for businesses Turkey’s econ- cess to short-term lending from “significantly restrict our ability to man for the Melbourne-based bank and its institutional businesses in clear to me that he wanted the op- Turkey’s central bank governor, been on minimizing the impact investing in Southeastern Anatolia omy minister, the Federal Reserve’s discount win- generate funds to pursue our chari- said. Taiwan, the Philippines and Viet- central bank governor of the of the downturn. In March, it and other poor regions, including acknowledged portunity to run a company as chief dow but additional regulatory table missions and thus reduce our “Our chief executive Mike Smith nam. But it balked at buying the executive,” Chairman and Chief Ex- impact for public good.” has previously said ANZ would be China operations because of price, year for his regulatory foresight unveiled a $3.2 billion stimulus tax and social security breaks last month that scrutiny. ecutive Kenneth I. Chenault said in The proposed rules would bar prepared to look at the RBS assets in Mr. Smith said at the time. AmEx also got a taxpayer- but also his astute handling of package, which reduced tax rates and state-owned land offered a statement Monday. “Given my managers from outside the EU from China if financial sense could be ANZ already has some presence funded capital infusion of $3.39 bil- the current crisis. on the purchase of cars and removed rent free. own plans for the coming years, we marketing their services to EU-based made of that,” the spokesman said. in China. It has banking licenses in lion through the Troubled Asset Re- Turkey’s policy makers are not them altogether on household These and other measures due Turkey’s central bank investors. EU managers also would “At present, however, our priority is three cities, and holds stakes in both agreed that was not likely to lief Program, repaying the govern- without challenges, however. The appliances, both for a period of to come into effect later this year governor, Durmuz happen at American Express in the be barred from marketing within the around regulatory approvals and in- Bank of Tianjin and Shanghai Rural Yilmaz, has attracted ment in July. country’s gross domestic product three months, and lowered — including a new package aimed short term.” bloc until they submitted to regula- tegration planning for the assets in Commercial Bank. international Mr. Kelly is one of at least sev- is likely to contract more than 6% value-added-tax rates to 8% at boosting private-sector employ- Mr. Chenault, 58, has been tion involving disclosure of data to the six countries where we have al- Talks between Standard Char- recognition for his eral past and present financial-in- regulators and investors, leverage re- ready reached agreement with tered and RBS for the sale of RBS’s this year, much worse than the AmEx’s CEO since 2001 and is try- from 18% on the purchase of ment by 500,000 — have been astute handling of the dustry executives considered as po- strictions and using EU-authorized RBS.” assets in China, India and Malaysia REUTERS/Umit Bektas ing to pull the company out a reces- 1.5% predicted by the IMF in apartments of over 150 square valued at around 60 billion new current crisis. tential short-term CEOs at Bank of institutions as depositaries. ANZ Bank isn’t in any discus- failed over price, a person familiar sion-fueled slump that was wors- America Corp., according to a per- The Church’s commissioners in- sions with RBS on the China opera- with the matter said Saturday. ened by late payments and defaults son familiar with the board’s clude John Sentamu, the archbishop tions, he said. The person said Standard Char- from customers AmEx aggressively deliberations. of York. The other five bodies were Mr. Smith, a former HSBC Hold- tered was willing to pay $200 mil- pursued before the U.S. economy Given the lack of an obvious in- the Wellcome Trust, the Nuffield ings PLC executive, wants to trans- lion to $250 million for the assets, stalled. The company is returning ternal successor to departing CEO Foundation, the Esmée Fairbairn form Melbourne-based ANZ into a but RBS was expecting much more. to its roots as an issuer of charge Kenneth D. Lewis, the Charlotte, Foundation, the Paul Hamlyn Foun- “super regional bank” competing ANZ Bank still has significant cards to affluent customers, and N.C., bank’s board might bring in a dation and the Henry Smith Charity. with the likes of HSBC and Citi- cash to help fund any acquisitions, write-offs of its card loans im- CEO who would keep the job only The European Parliament will group. He hopes to generate 20% of even after striking a Œ1.1 billion ($1.61 proved slightly in September from for about two years, people familiar consider amendments to a draft di- ANZ’s revenue from Asia by 2012 billion) deal last month to buy out its the previous month. with the matter said. rective next month. amid intense competition and slow- Australian wealth-management ven- AmExdidn’tpromoteanotherex- Mr. Kelly couldn’t be reached for —For more, visit ing loan growth in its home markets. ture partner ING Groep to boost its ecutivetosucceedMr.Kellyaspresi- comment. efinancialnews.com ANZ agreed in August to buy share in the fast-growing sector.

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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

Am Blend Portfolio I US EQ LUX 10/05 USD 11.49 19.7 –2.3 –19.8 Emg Mkts Growth B GL EQ LUX 10/05 USD 26.51 54.6 16.9 –19.3 Gl Balanced I US BA LUX 10/05 USD 16.43 20.0 4.3 –13.2 Am Growth A US EQ LUX 10/05 USD 28.40 24.0 11.9 –11.5 Emg Mkts Growth I GL EQ LUX 10/05 USD 34.53 56.7 19.1 –17.8 Gl Bond A US BD LUX 10/05 USD 9.29 12.1 12.7 5.0 Am Growth B US EQ LUX 10/05 USD 23.94 23.1 10.7 –12.4 Eur Growth A EU EQ LUX 10/05 EUR 6.60 18.5 –7.4 –22.4 Gl Bond A2 US BD LUX 10/05 USD 15.94 12.2 12.7 4.9 Am Growth I US EQ LUX 10/05 USD 31.42 24.8 12.8 –10.8 Eur Growth B EU EQ LUX 10/05 EUR 5.95 17.6 –8.3 –23.2 Gl Bond B US BD LUX 10/05 USD 9.29 11.3 11.5 3.9 Data as shown is for information purposes only. No offer is being made by Gl Bond B2 US BD LUX 10/05 USD 14.00 11.4 11.6 3.9 Morningstar, Ltd. or this publication. Funds shown aren’t registered with the U.S. Am Income A US BD LUX 10/05 USD 8.41 22.9 17.4 5.3 Eur Growth I EU EQ LUX 10/05 EUR 7.19 19.2 –6.6 –21.7 Am Income A2 US BD LUX 10/05 USD 18.73 23.1 17.4 5.2 Eur Income A EU BD LUX 10/05 EUR 6.60 37.4 20.0 2.4 Gl Bond I US BD LUX 10/05 USD 9.29 12.6 13.3 5.6 Securities and Exchange Commission and aren’t available for sale to United States Gl Conservative A US BA LUX 10/05 USD 14.63 13.5 6.1 –5.7 Am Income B US BD LUX 10/05 USD 8.41 22.2 16.3 4.5 Eur Income A2 EU BD LUX 10/05 EUR 12.68 37.7 20.1 2.4 citizens and/or residents except as noted. Prices are in local currencies. Gl Conservative A2 US BA LUX 10/05 USD 16.55 13.5 6.1 –5.6 Am Income B2 US BD LUX 10/05 USD 16.17 22.4 16.5 4.5 Eur Income B EU BD LUX 10/05 EUR 6.60 36.7 19.2 1.6 All performance figures are calculated using the most recent prices available. Gl Conservative B US BA LUX 10/05 USD 14.62 12.7 5.1 –6.6 NAV — %RETURN — Am Income I US BD LUX 10/05 USD 8.41 23.5 18.2 5.9 Eur Income B2 EU BD LUX 10/05 EUR 11.81 36.8 19.2 1.6 Gl Conservative B2 US BA LUX 10/05 USD 15.77 12.7 5.1 –6.6 FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR Am Value A US EQ LUX 10/05 USD 8.03 11.4 –0.4 –19.4 Eur Income I EU BD LUX 10/05 EUR 6.60 37.9 20.7 2.9 Gl Conservative I US BA LUX 10/05 USD 14.68 14.2 7.0 –4.9 Am Value B US EQ LUX 10/05 USD 7.41 10.4 –1.3 –20.2 Eur Strat Value A EU EQ LUX 10/05 EUR 8.11 16.5 –13.0 –28.0 Gl Eq Blend A GL EQ LUX 10/05 USD 10.99 22.9 –4.8 –25.9 Am Value I US EQ LUX 10/05 USD 8.63 12.1 0.5 –18.7 Eur Strat Value I EU EQ LUX 10/05 EUR 8.29 17.3 –12.3 –27.4 Gl Eq Blend B GL EQ LUX 10/05 USD 10.34 22.1 –5.7 –26.6 Asian Technology A OT EQ LUX 10/05 USD 14.11 61.3 29.3 –11.2 Eur Value A EU EQ LUX 10/05 EUR 8.68 19.2 –7.0 –24.9 Gl Eq Blend I GL EQ LUX 10/05 USD 11.57 23.7 –4.1 –25.3 Asian Technology B OT EQ LUX 10/05 USD 12.37 60.0 28.1 –12.0 Eur Value B EU EQ LUX 10/05 EUR 8.00 18.2 –7.9 –25.6 Gl Growth A GL EQ LUX 10/05 USD 38.96 20.8 –6.1 –25.9 Asian Technology I OT EQ LUX 10/05 USD 15.70 62.2 30.4 –10.5 Eur Value I EU EQ LUX 10/05 EUR 10.00 19.8 –6.3 –24.3 Gl Growth B GL EQ LUX 10/05 USD 32.60 19.9 –7.0 –26.6 Emg Mkts Debt A GL BD LUX 10/05 USD 15.60 42.3 27.9 7.6 Gl Balanced (Euro) A EU BA LUX 10/05 USD 16.06 15.6 –1.0 –15.1 Gl Growth I GL EQ LUX 10/05 USD 43.18 21.6 –5.3 –25.3 Emg Mkts Debt A2 GL BD LUX 10/05 USD 19.85 42.6 28.1 7.6 Gl Balanced (Euro) B EU BA LUX 10/05 USD 15.70 14.8 –1.9 –15.9 Gl High Yield A US BD LUX 10/05 USD 4.21 53.0 22.2 1.5 Emg Mkts Debt B GL BD LUX 10/05 USD 15.60 41.3 26.6 6.5 Gl Balanced (Euro) C EU BA LUX 10/05 USD 15.96 15.5 –1.2 –15.4 Gl High Yield A2 US BD LUX 10/05 USD 8.83 53.3 22.0 1.3 n ALLIANCE BERNSTEIN Gl High Yield B US BD LUX 10/05 USD 4.21 51.5 20.5 0.2 Emg Mkts Debt B2 GL BD LUX 10/05 USD 19.16 41.5 26.8 6.6 Gl Balanced (Euro) I EU BA LUX 10/05 USD 16.34 NS NS NS Gl High Yield B2 US BD LUX 10/05 USD 14.23 52.2 20.8 0.3 www.alliancebernstein.com/investments Tel. +800 2263 8637 Emg Mkts Debt I GL BD LUX 10/05 USD 15.60 42.8 28.5 8.2 Gl Balanced A US BA LUX 10/05 USD 15.87 19.4 3.5 –13.8 Am Blend Portfolio A US EQ LUX 10/05 USD 9.78 19.1 –3.1 –20.4 Emg Mkts Growth A GL EQ LUX 10/05 USD 31.21 55.7 18.1 –18.5 Gl Balanced B US BA LUX 10/05 USD 15.12 18.5 2.5 –14.7 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]