36 THURSDAY, SEPTEMBER 25, 2008 THE WALL STREET JOURNAL. HEARD ON THE STREET

Financial Analysis and Commentary more at WSJ.com/heard

VOL. XXVI NO. 167 THURSDAY, SEPTEMBER 25, 2008 One Lehman lesson: the perils of rehypothecation Œ2.90 Not so sweet Œ2.90 Cruising attitude: Airlines The collapse of Lehman posted with the broker as For the hedge funds, cating assets valued at

Few things are more em- - Spain Brothers is providing a sal- collateral, in exchange for there are straightforward more than around 140% of - France load up A380s with perks barrassing for a chief execu- Power play utary lesson in risk man- offering the client easier ways to counter this rehy- what a client owes them. MARKETPLACE | PAGE 31 U.S. woes could generate tive than calling a press con- Œ3.20 Year-to-date share agement for the hedge- credit terms. By lending pothecation risk. One way Lehman’s administrators

ference only to find there is Sk 100/Œ3.32 performance fund industry. out clients’ securities or to limit the potential dam- think the bank’s European nothing to announce. Elec- - Finland In a rush to get their using them as collateral, age is to write trigger prime brokerage rehypothe- At CVS golf gala, suppliers tricité de France Chief Exec- 60% typically for repurchase cated $22 billion of its cli- - Slovakia

funds to market, many events, such as the fall in Dkr 22

British Energy Œ3 utive Pierre Gadonneix put 40 agreements, rehypotheca- ents’ assets. This has pay to get executive access global recriminations managers ignored advice the broker’s share price or that August setback tion lets brokers enhance raised concerns about the 20 that they should protect credit rating below a set NEWS IN DEPTH | PAGES 18-19 - Denmark squarely behind him their own returns. level of rehypothecation at - Portugal their assets on the off level, into the client-bro- Wednesday in confirming a 0 other brokerage houses. Countries question But here is the catch. In ker contract. When Pushing to remedy financial distress

chance their prime broker Kc 110 Œ15.7 billion ($23.1 billion) –20 the process, a client’s rehy- Excesses like this lend Zl 10.50 went bust. That has breached, the broker’s re- agreement to acquire Brit- pothecated assets become weight to calls for greater economic leadership –40 turned out to be a less far- hypothecation rights are ish Energy. EDF mixed up with the bro- disclosure by the prime- - Poland –60 reduced. But such triggers EDF has pulled off the fetched scenario than ker’s, so in the event of a broking industry, as well as bailouts mount Nkr 27 2008 might have been believed are rarely used. - Czech Republic What’s News— acquisition without making bankruptcy filing, like Leh- as tighter regulation. If in- Source: Thomson Reuters before the credit crisis. Instead, many hedge The turmoil in the U.S. financial major concessions to minor- man’s, clients have to join creased transparency be- 7 7 - Norway

HRK 20 Business&Finance World-Wide ity shareholders who balked Datastream At issue is rehypotheca- the bank’s other unsecured funds have taken the easy comes the norm, it will be sector threatens to undermine sup-

at the first offer of 765 tion, a common practice creditors at the back of route, relying on brokers too late for some overea- Œ2.90 Democratic leaders in the U.S. U.S. financial-sector turmoil port for the dollar among foreign in- pence ($14.21) a share. The where a broker appropri- the line to retrieve some to stick to limits that pre- ger hedge funds. - Croatia Congress are seriously consid- threatens to hurt the dollar’s vestors, damage American efforts may prove less so in the me- ates a client’s assets, of what they are owed. vent them from rehypothe- —Sean Walters ering placing restrictions on standing among foreign inves- to free more markets of regulation, turmoil on financial mar- Œ2.90 the proposed financial-market kets and tightening credit dium term in the light of - Netherlands tors, damage American efforts and bolster competition from other made EDF’s cash hard to slack U.K. and European eco- bailout, including a require- to free markets of regulation countries’ banks and financial mar- Dh 24 turn down once the utility nomic growth. - Belgium ment that the $700 billion and bolster competition from kets that are looking to expand their Œ3

Despite optimism, bottom line hasn’t hit bottom £1.40 found a way to leave British In any case, EDF retains sought by the White House be other countries’ banks and mar- global influence. Energy investors with resid- 80% of any of this extra rev- - Morocco doled out in portions rather kets, as U.S. economic leader- In country after country, the reac- enue for its own sharehold- Remarkably, Wall near-term prospect, as the to be $156 billion. Not for energy profits also re- - Austria than in a lump sum. Page 1 ship is being questioned. Page 1 tion to the financial failures and gov- ual exposure to the compa- Œ2.90 ers, as well as benefiting Street’s consensus on earn- private sector deleverages. only would that represent main strong, reflecting lin- ernment bailouts of recent weeks is ny’s likely operational turn- n AIG formally agreed to ac- n Obama and McCain remain from all of the significant ings is: “Fine in ’09.” Consumer spending, which more than double the ex-

gering hopes about global Lk 370.00 around and any rise in U.K. – United Kingdom cept a U.S. government bailout essentially tied in the presiden- U.S. Fed Chairman synergies it expects from Even as politicians re- is 70% of gross domestic pectation for this year, it economic decoupling. $2 plan where it will receive $85 By Jason Dean in Beijing, energy prices. - Luxembourg tial race amid the U.S. financial Ben Bernanke combining British Energy make the Street, its deni- product, and corporate in- would imply the sector ac- Marcus Walker in Berlin, At 774 pence, the new of- That thesis appears to billion in exchange for a nearly turmoil, a Wall Street Journal/ prepares to testify with its existing operations zens remain optimistic. vestment will necessarily tually making more in be coming apart as far as 80% equity interest. Page 2 Evan Ramstad in Seoul fer is only slightly sweeter. L£ 4000 NBC News poll shows. Page 2 before the Joint in the U.K. EDF is doubling Collectively, analysts ex- suffer. 2009 than in 2007 when, and Chip Cummins in Dubai Shareholders can take it all Europe is concerned, at n A Libyan sovereign fund is n McCain said he will suspend Economic Committee its installed capacity in Brit- pect S&P 500 earnings to Expecting a big profits to paraphrase one of its in cash or opt for 700 least. Another headwind, ready to acquire a stake in the his campaign on Thursday to fo- - Lebanon

- U.S. Military (Eur) to question America’s long-stand- ain. And a side deal in the expand by 23.9% in 2009, rebound in this climate more high-profile casual- at the per-share level, is Reuters pence in cash and the bal- works to sell 25% of British according to Thomson holding company that controls cus on the economic crisis and ing economic leadership —and re- the sharp decline in S&P Œ2.90 Page 4 ance in contingent value Energy to Centrica would Reuters. Telecom Italia. called for a delay in the election visit policies that follow the U.S. n Crisis puts focus n Rapid-fire bailout n Trader who

500 stock buybacks, which YTL 4.25 - Italy debate scheduled Friday. Page 3 rights that, British Energy help smooth the transaction What’s more, that fig- Hopes for energy profits also n A former board member at model. says, could be worth as fell 44% in the second on U.S. Treasury talk stirs calls for turned big profit

past the competition author- ure has increased slightly Œ2.90 n quarter, according to Stan- Siemens claimed the company Iraq’s parliament approved In South Korea, legislators are re- much as an additional 575 - Turkey ities. since July, despite the re- remain strong, reflecting secretly financed a labor group a provincial-elections law after considering plans to liberalize the leadership come greater financial attacks heart of pence over 10 years. dard & Poor’s. Then there is the accom- cent intensification of the to curb Germany’s most power- months of deadlock, under in- country’s financial industry. Ger-

As corporate manage- S£ 150 January ..13 ...... oversight.21...... rescue plan.34 .. That isn’t nearly as gen- plishment of EDF’s strategic credit crunch. lingering hopes about global ful industrial union. Page 4 tense U.S. pressure. Gunmen man chancellor Angela Merkel has ment teams head toward - Ireland (Rep.) erous as it looks at first goal of grabbing pole posi- Such bottom-up analy- n tipped off about a raid am- refreshed her defense of a law that economic decoupling. the end of a turbulent - Syria French utility EDF remains

sight. Payments on the Ft 530 tion in one of the four key sis, however, will be hungry for overseas nuclear bushed Iraqi policemen and gives the state an effective veto CVRs are based on keeping year, expect budgets to be lysts there say. mist at Peking University’s China markets it has identified as crushed by top-down pres- projects, even as it confirmed U.S.-allied fighters, killing 22. over takeovers of Europe’s largest British Energy’s aging a new nuclear age dawns. sures. recast, reduced expecta- SF 4.80 carmaker, Volkswagen AG. The U.S. While the U.S. has been a model Center for Economic Research. tions to be communicated - Hungary its $23.22 billion deal to buy n German officials established power stations’ production Of the 10 new-generation Despite concern about makes no sense. ties, the music was still British Energy. Page 6 effort to convince China to let the for Chinese reforms, now it’s clear In a world much more economi- of electricity above a mini- plants EDF wants to build the government flooding Take the financial sec- playing. to analysts—and the Œ2.90 direct contact with kidnappers market determine the value of its “the teachers have their own prob- cally and financially intertwined n New signs of plunging busi- of 19 people, including 11 Europe- mum threshold, as well as by 2020, four will be in the the economy with dollars tor, at the center of the Views on the consumer Street’s enduring opti- - Switzerland currency may be undermined, ana- lems,” says Song Guoqing, an econo- Please turn to page 34 on future power prices. U.K. and stoking inflation, dis- storm. Its collective earn- discretionary sector are mism to be dimmed. - Greece ness confidence across the ans, now being held in Sudan, af- Œ3 Prices are buoyant now but —Matthew Curtin inflation is the more likely ings for 2009 are forecast similarly bullish. Hopes —Liam Denning kr 27 euro zone in September bode ter days of indirect negotiations. ill for its economic growth in n Finland’s government pledged Germany For information or to subscribe, visit www.services.wsje.com or call +44 (0) 207 309 7799 — Albania Sweden the fourth quarter. Page 11 to tighten gun laws, a day after a n Natixis reported a 97% sub- 22-year-old gunman killed 10 stu- Goldman boosts offering Plan to slice up scription rate as the French dents, including eight women, at investment bank sought to a trade school and then himself. raise $5.44 billion. Page 22 bailout package n Taro Aso was confirmed as after deal with Buffett Money fund ignored own advice n Boeing and workers remain Japan’s prime minister and in a standoff almost three astrophic consequences for Re- “When I first created the money- named veteran lawmakers to By Susanne Craig, The move capped a day of bruis- picks up steam weeks after the Machinists Holdings increased serve’s money-market funds, man- market fund back in 1970, it was de- key economic positions. Page 11 Matthew Karnitschnig ing hearings in Congress on Tuesday Stretching yield Bringing Universities and union at its commercial-plane aged by Reserve Management Co. signed with the tenets of safety, li- And Aaron Lucchetti over the fate of the Treasury Depart- WASHINGTON—Democratic As rates fell over the last year, the Businesses Together factories went on strike. Page 6 n North Korea barred in riskier type of debt The firm lost 90% of its assets, quidity” and reasonable returns, U.N. in- ment’splantobuy$700billionindis- leaders in the U.S. Congress are se- Primary Fund moved into commercial Books for Brains which had fallen to $8.5 billion as of Mr. Bent wrote to the Securities and n U.S. stocks were little changed spectors from its Yongbyon reac- Goldman Sachs Group Inc. said tressedassetsfromfinancialinstitu- riously considering placing tough paper to garner yields more amid pledge of safety Monday, down from nearly $86 bil- Exchange Commission in Septem- 15 management books to win in seesaw action, while Euro- tor and plans to reactivate the Tuesday that it will get a $5 billion tions,inabidtoshore upthebanking restrictions on the Bush adminis- attractive to investors. lion at the start of September, ac- ber. The past year has shown those pean shares fell for the third plant within a week, the chief investment from billionaire Warren system. The plan is still expected to tration’s proposed market rescue, U.N. inspector said. Page 11 By Diya Gullapalli cording to iMoneyNet Inc. Reserve 6% principles have “fallen to the way- straight session. Page 22 Buffett’s company, marking one of pass, though it is coming under in- including a requirement that the And Shefali Anand faces at least two lawsuits over its 5 side as portfolio managers chased n German prosecutors have n China’s contaminated-milk the biggest expressions of confi- creasing fire. disclosure of losses on soured Leh- the highest yield and compromised dence in the financial system since Mr. Buffett, in an interview with By Greg Hitt, Deborah 4 opened tax-evasion probes of troubles highlight the need for More than a year before it man Brothers Holdings Inc. securi- the integrity of the money fund.” 966 suspects with accounts at better enforcement of product- the credit crisis intensified early CNBC on Wednesday, said he could Solomon, Damian Paletta, 3 “broke the buck” with losses that ties and indefinite suspension of fur- On Sept. 15, the day before it LLB in Liechtenstein. Page 21 safety standards at all stages, this month. understand the anger over the Trea- Sudeep Reddy, John D. spread chaos through the financial ther redemptions. 2 Western officials said. Page 10 To further shore up its balance sury’s plan but added that action is McKinnon broke the buck, the firm tried to n Global flows of foreign di- system last week, the Reserve Pri- A spokeswoman for Reserve de- 1 shop some of its securities in the sheet, Goldman said Wednesday needed.HecalledBerkshire’sinvest- rect investment are set to tum- n China prepared to send astro- mary Fund began loading up on a clined to comment on the fund. market, according to people famil- To win a copy of “A Woman’s that it had priced a public offering ment in Goldman a “vote of confi- $700 billion sought by the White 0 ble from 2007’s record high, a nauts into orbit Thursday to con- type of short-term debt that the Mr. Bent, 71 years old, who in- iar with the matter. Shortly after, Place is in the Boardroom” of 40.65 million common shares at dence” that Congress will approve House be doled out in portions 2005 ’06 ’07 ’08 U.N. group said. Page 13 duct its first spacewalks. Page 14 money-market fund had long vented the money market with a the firm told the SEC it was about to email us your full contact $123 a share for total proceeds of the bailout but said the investment’s rather than a lump sum. Note: Yields for institutional share class details with “Woman” n about $5 billion. The offering, timingwasn’t tiedtothe debateover shunned. partner in 1970, hasn’t spoken pub- break the buck. An investor group looked n Venezuelan President Chávez Many details remain to be licly about what happened. When through May 31 of each year in the subject field. like it could revive its bid for priced at a 1.6% discount to Tues- the plan. worked out. One option discussed Even as Bruce Bent, the fund’s Right now, those left in the Pri- said a joint investment fund the catastrophe struck starting Source: Reserve Primary Fund ailing carrier Alitalia. Page 6 day’s closing price, was double the Mr.BuffettalsosaidTreasurySec- among Democratic leaders would founder, told shareholders in a July mary fund can’t withdraw, accord- Reply by noon CET, October 01, with China would be doubled to Sept. 15, he was traveling in Italy. ’08 to the address below. minimum the bank said it planned retary Henry Paulson should be provide for a quick vote on per- 2008 letter that the fund had “unwa- ing to postings on the firm’s Web $12 billion in capital. Page 25 When Lehman filed for bank- Winners will informed by email. 4 p.m. ET to raise when announcing the invest- asked to stay on by the next adminis- haps a third of the funds sought by vering discipline focused on protect- site. The fund has frozen redemp- Markets ruptcy, Reserve owned Lehman debt Moving into riskier investments NET PCT n Pakistan’s military said a pi- ment by Mr. Buffett’s Berkshire tration. the administration, with later ing your principal,” Reserve was For rules and responses contact: securities with a face value of $785 helped Reserve generate more at- tions for an indefinite period. Those MARKET CLOSE CHG CHG lotless aircraft that crashed in Hathaway Inc. The Berkshire investment will be votes in Congress planned on the gobbling up commercial paper. By [email protected] million. It had to write that down to tractive returns than competitors. trapped there include many individ- DJIA 10825.17 -29.00 -0.27 South Waziristan was recovered, The deal is the latest in a series a big boost to Goldman. Even balance. May of this year, 54% of the fund’s ual investors, according to people fa- The Wall Street Journal Europe zero, which prompted the Primary Two years ago, the fund paid about is read every day by 27,000 Nasdaq 2155.68 +2.35 +0.11 but the Pentagon denied any U.S. of dramatic events that have re- though the firm hasn’t posted a More likely is a plan that would holdings were in commercial paper, fund to break the buck, meaning 0.25 percentage points better than miliar with the matter. students at 180 top business DJ Stoxx 600 265.66 -1.65 -0.62 drone had been lost in the area. shaped American finance this quarterly loss since the credit crisis authorize all of the $700 billion up- up from 0.9% about a year earlier. Ex- Third Avenue Institutional In- schools and university losses pulled the fund’s share price the average rival, according to campuses across Europe. FTSE 100 5095.57 -40.55 -0.79 month, from the federal takeover of began, its profits have waned and front, but place benchmarks mea- posure to drab but safe certificates iMoneyNet. That gap widened to ternational Value Fund has filed a Fannie Mae and Freddie Mac to the its stock got hit last week. It has ex- below the hallowed $1-a-share stan- Books courtesy of DAX 6052.87 -15.66 -0.26 Editorial&Opinion suring the performance of the bail- of deposit plunged. dard. about half a percentage point. The lawsuit against Reserve, claiming CAC 40 4114.54 -25.28 -0.61 bankruptcy filing of Lehman Broth- amined a number of options aimed out that would have to be met for While the run on money funds The Lehman holdings were part institutional class was the top-per- the money fund’s refusal to pay off Message me ers Holdings Inc. to the bailout of at bolstering its capital position. all of the funds to be drawn upon. any more redemptions unfairly pe- Euro $1.4667 -0.0059 -0.40 American International Group Inc. Berkshire’splan“isasignofconfi- that was ignited by the fund’s losses of a bigger push by the fund into forming money fund among peers in Brussels tries to please con- A key issue yet to be deter- Nymex crude $105.73 -0.88 -0.83 Morgan has eased, Mr. Bent’s failure to fol- commercial paper, which is short- 2007. nalized remaining investors. sumers by bleeding telecoms. and steps by Goldman and dence from one of the nation’s most mined is who in the government low his own advice on the virtues of term debt companies issue to fi- Meanwhile, Mr. Bent kept in- —Liz Rappaport Money & Investing > Page 21 Business Europe. Page 17 Stanley to become commercial respectedinvestors,”saidJamesAn- would have the power to judge conservative investing is having cat- nance their operations. veighing against risky investing. contributed to this article. banks. Please turn to page 35 Please turn to page 35 2 THURSDAY, SEPTEMBER 25, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. THURSDAY, SEPTEMBER 25, 2008 35 LEADING THE NEWS THE FINANCIAL CRISIS AIG accepts offer Plan to slice up bailout package picks up steam U.S. investigates of a giant bailout McCain, Obama still close in poll Continued from first page omy, high energy prices and rising four companies whether benchmarks were being unemployment. In the cross hairs crucial to the outcome of the elec- met—whether that power would So far, the White House has re- prepared by U.S. The crisis is stirring calls for curbs on executive pay and exotic investments. at heart of crisis Voters grow angrier Deadlocked tion. They now favor Sen. McCain by reside with the administration or lied largely on the credibility of By Lavonne Kuykendall 13 percentage points, up from eight with an independent board that Mr. Paulson—a former Goldman By Evan Pérez Voters say Barack Obama would Average annual CEO $20 Credit default $70 over U.S.’sdirection; points two weeks ago. In early Sep- would be created to oversee the Sachs chief executive—and Fed- better handle many of the current compensation, in millions* swaps out- American International Group Presidential preference tember, just after both parties’ con- rescue. eral Reserve Chairman Ben Ber- 60 WASHINGTON—U.S. investiga- domestic issues, but the race remains standing at Inc. formally agreed to accept a fed- a statistical tie All voters ventions, half of independent voters The idea has been percolating nanke to convince a skeptical Con- 15 year end, 50 tors have opened preliminary even as John McCain has made gains eral bailout plan that would lend it had a positive image of Sen. Obama; for days, but was getting new at- gress. notional probes into the financial troubles of among several key constituencies. 46% $85 billion in exchange for it giving By Laura Meckler now it is 39%. Independents were tention Wednesday after mem- Mr. Bernanke upped the ante amounts 40 four high-profile companies that 45 10 in trillions a nearly 80% equity interest to the Who would be better on: also less likely to say they could bers from both parties continued Wednesday, warning lawmakers 30 are at the center of the current finan- U.S. government. WASHINGTON—When it comes The economy Independents identify with his background and to raise concerns about the cost of that the nation faces “grave cial turmoil that the administration 5 20 Warren Buffett, Maurice R. to the economy, voters long have 46% 34% values than they were in early Sep- the plan and the scope of the pow- threats to financial stability” if ac- of President George W. Bush says re- “Hank” Greenberg and various in- 10 quires an unprecedented proposed had more confidence in Democratic 34 48 tember. ers that would be granted Trea- tion isn’t taken quickly. surance companies are all eager to taxpayer-funded bailout to clean presidential hopeful Barack Obama And nearly half of all vot- sury Secretary Henry Paulson. The unusually strong language 0 0 The mortgage/housing crisis Suburban buy businesses from AIG. That ea- than his Republican rival, John ers—45%—said they think Mr. Paulson warned Tuesday from the Fed chairman, who heads 1970 ’95’90’85’80’75 2000 ’05 2001 ’07 up. gerness—and skittishness among McCain. Yet the nation’s financial 38% 38% Sen. Obama would raise taxes on against partial approval, telling an independent agency, under- The Federal Bureau of Investiga- AIG insurance customers and em- turmoil hasn’t changed the overall 30 50 middle-income people, even though the Senate Banking Committee scored to many lawmakers the pos- *Includes salary, bonus, nonequity incentives, benefits, and the grant-date value of restricted stock, tion’s preliminary inquiries are fo- ployees—could accelerate and alter options, and other equity-based awards; data are adjusted for inflation in 2006 dollars race, which remains essentially White Catholics he has promised not to, a sign that that the full $700 billion was sibility of a backlash from constit- cusing on whether fraud helped the company’s plans to sell assets. The financial crisis Sources: Kevin Murphy, University of Southern California (compensation); International Swaps and Fan- tied, according to a new Wall Street Obama Sen. McCain’s attacks on taxes are needed to instill confidence in fi- uents if the economy tumbles fur- cause some of the troubles at The New York company plans to 35% 37% Derivatives Association (CDS) Journal/NBC News poll. McCain working. nancial markets. ther in the coming weeks. “Stabili- nie Mae, Freddie Mac, Lehman pay off its Federal Reserve loan with 30 53 Brothers Holdings Ameri- The survey shows that voters But there are positive signs for Mr. Bush, struggling to gain zation of our financial system is Inc. and a quick sale of noncore businesses, source: WSJ/NBC News telephone poll of 1,085 registered voters conducted Sept. 19–22; can International Group Inc., ac- have grown even angrier about the Sen. Obama, too. He picked up sup- public support for the proposal, an essential precondition for eco- Still, many lawmakers are hesi- The administration’s hope is according to Edward M. Liddy, the margin of error for full sample: +/–3.0 percentage points cording to senior law-enforcement direction of country than they were port among voters who favored planned to address the nation nomic recovery,” he said. tating, as they are being deluged that Congress can pass the plan insurer’s newly appointed chief ex- Sen. Hillary Clinton in the Demo- Wednesday night. Mr. Bernanke didn’t insist that a with complaints about the plan within days to prevent more dan- officials. ecutive in recent interviews. over the summer, a sentiment that disapproving and a third without an Given Sen. Obama’s advantages cratic primary. Voters who have The president’s high-stakes package be the full $700 billion, de- from voters just weeks before the gerous lockups in credit markets. Lehman and AIG declined to com- In a Wednesday interview on Sen. McCain has tapped with a popu- opinion. on the economy, and given that the learned more about him in the past speech reflects the difficulties he ferring to Mr. Paulson on that point. November election. But the risk is that Mr. Bush, with ment. A spokeswoman for the Fed- CNBC, Mr. Buffett said he had ex- list message. For more than a week, “It’s as if the financial crisis has party in charge of the White House couple of weeks are more likely to is experiencing in selling the $700 He said a key issue was “what infor- The White House now is play- his popularity near its lowest eral Housing Finance Agency, which pressed an interest in buying “one or he has eviscerated Wall Street and frozen the electorate in place—as if typically takes the blame amid bad say that the new information gave billion plan, which would benefit mation would the market get about ing its top card—a presidential ad- point and less than four months regulates Fannie and Freddie and two units” as AIG struggled to raise Washington alike for the greed, cor- someone hit the pause button on economic news, many expected that them a more favorable impression. large financial institutions—and the government’s commitment to dress to the nation—to convince left in his term, won’t be able to has both companies in conservator- capital in recent weeks but was un- ruption and incompetence he says this election while we sort this out,” Sen. Obama would have jumped By contrast, most voters who addressing this problem.” seal the deal either, and the admin- ship, also declined to comment. able to get a deal worked out in time. lie behind the financial crisis. their executives—at a time when the public that the plan is really said Republican pollster Neil New- ahead of his rival. But the Journal learned more about Sen. McCain ordinary Americans are feeling “It is a very big problem, and we needed, and that everyone will suf- istration will have to alter the plan The probes come as the huge po- Mr. Buffett’s Berkshire Hatha- At the same time, a majority of house, who conducts the poll with poll suggests that isn’t the case, at say that what they heard gave them their own pain from the weak econ- don’t want to undershoot,” he said. fer if the government doesn’t act. dramatically. tential tab for taxpayers in the crisis way Inc. operates insurance and re- voters still believe Sen. Obama is Democratic pollster Peter Hart. least not yet, and Mr. Hart argues a less favorable view. raises the stakes for the Justice De- insurance businesses, and was also best able to handle the economy, It raises the stakes for Friday’s that Sen. McCain’s ability to tap into Voters also said that Sen. Obama partment. The FBI says it now has rumored to be interested in buying and many more believe he would presidential debate, the first of voter anger explains why. would do a better job handling ev- 26 companies under investigation, AIG’s aircraft-leasing business. Mr. bring real change to the country three scheduled debates. Four in 10 ery economic issue except taxes, in- in addition to pursuing more than Buffett said he expects to get an- than say the same of Sen. McCain. A near-record 73% of voters said 1,400 mortgage-fraud cases nation- other chance to pick up some AIG voters said the debates will be ex- the nation is on the wrong track, up cluding improving the economy, the Goldman public offering follows deal with Buffett Overall, the race remains a statis- wide. tremely or quite important in mak- six points from last month. More mortgage and housing crisis and businesses in coming months. tical tie, with 48% favoring Pressure is building for the FBI “Most of it will be for sale in the ing their decisions, more than had people think the nation is in a “state dealing with the Wall Street finan- Continued from first page man but in Washington’s commit- fett into Mars Inc.’s $23 billion acqui- forcedtostepdownamidaTreasury- Sen. Obama and his running mate, and regulators to hold top execu- next year or two,” he predicted. said the same at this point in either of decline.” Nearly eight in 10 voters cial crisis. gel, a finance professor at George- ment to come up with a plan.” sition of Wm. Wrigley Jr. & Co. ear- auction bidding scandal. Mr. Buffett Sen. Joe Biden, and 46% favoring of the past two elections. At the same time, Sen. McCain’s town University, who added that While Mr. Buffett’s investment is lier this year. Mr. Buffett agreed to was widely credited with saving tives accountable for the crisis that AIG’s former chairman and chief think the nation is in a recession, has crippled the nation’s finance sec- Sen. McCain and his running mate, There is no doubt that the econ- age—at 72 years old, he would be “sharp investors” now are “sniffing unquestionably a vote of confidence put about $6.5 billion into the deal. Salomon from crumbling by quickly executive, Mr. Greenberg, has said and most of them think the worst is tor. In meetings on Capitol Hill, Alaska Gov. Sarah Palin. Two weeks omy is the top issue for large num- the oldest man inaugurated to a around the wreckage of the credit in Goldman, it is structured to pro- It wasn’t clear what role Mr. Trott cleaning house and winning over an- that his C.V. Starr investment vehi- yet to come. And public opinion some lawmakers raised concerns ago, Sen. Obama had a one-point bers of voters. Offered four issue first term—remains an issue for crunch to pick up good assets on the tect him from losses. The dividends may have played in Mr. Buffett’s de- grylegislators,investorsandclients. cle is also a potential buyer. ticked down for every public figure with Treasury Secretary Henry Paul- edge. The new poll has a margin of sets, nearly six in 10 picked eco- many voters. Forty-four percent cheap.” from the preferred shares will re- cision to invest in Goldman. He relinquished his Salomon Mr. Greenberg was forced out of and institution the poll asked about, son that by taking large stakes in error of plus or minus three percent- nomic issues such as job losses, said they worry about his ability to The deal is structured in two main steady even if Goldman’s stock The Omaha, Neb., investor had post in June 1992, saying in Berk- AIG in 2005. including President George W. some financial firms, the govern- age points. home foreclosures and energy as serve four years. parts, giving Berkshire a stream of falls. And if it does, Mr. Buffett won’t mostly remained on the sidelines as shire’s letter to shareholders in The announcement came as the Bush, Sens. McCain and Obama and ment may be limiting its ability to It was conducted Sept. 19 to 22, those most important to them. Do- It all combines to keep the elec- cash and potential ownership of spend the $5 billion to exercise the financial stocks have tumbled. He 1993 that “though far from fun, [it] U.S. Federal Bureau of Investigation both political parties. exact penalties for wrongdoing, ac- is looking into potential fraud at as news of the $700 billion Wall mestic issues such as health care, ed- tion competitive with less than six roughly 10% of Goldman. Berkshire warrants to buy common. Including made his first significant deal last was interesting and worthwhile.” It makes the electorate ripe for cording to people familiar with the mortgage giants Fannie Mae and Street bailout proposal broke. The ucation and the environment were a weeks to go. will spend $5 billion on “perpetual” Goldman’s after-hours stock jump, week, with a Berkshire unit agreeing Salomon was sold into what is now Sen. McCain’s populist message, matter. Freddie Mac, as well as Lehman survey found no consensus on the distant second, with social issues “For everybody who wants to preferred shares of Goldman. These Berkshire has a nearly $700 million to pay $4.7 billion for Baltimore util- Citigroup Inc. in 1997,and Berkshire Mr. Hart said, recalling the classic The FBI says that the corporate Brothers Holdings Inc. and AIG. plan, with a third approving, a third and foreign policy behind that. close the door on this election: aren’t convertible into equity but pay paper profit on the deal already. ity Constellation Energy Group Inc. sold shares after the deal. It later probes are part of an effort to pur- movie “Network,” in which TV news a 10% dividend. Goldman will have Mr.Buffett built his reputation as In his annual letter to sharehold- owned Citigroup shares, but Mr. Buf- Sorry, not yet,” said Mr. Hart. sue allegations of higher-level fraud anchor Howard Beale urges viewers the right to repurchase the preferred one of the most astute investors by ers in March, Mr. Buffett couldn’t re- fett sold out of those in 2001, accord- The Journal/NBC News poll more sweeping than the retail-level to proclaim, “I’m as mad as hell, and shares atanytime for a10% premium. betting on companies with strong sist a swipe at financial firms that ing to regulatory filings, just before comes a day after a national poll con- infractions that have been at the cen- INDEX TO BUSINESSES I’m not going to take this anymore.” Berkshire also will get warrants brands. Goldman fits that descrip- suffered from their exposure to the Citigroup was beset by problems ducted for the Washington Post and ter of most cases brought so far. “John McCain has become the granting it the right to buy $5 bil- with regulators amid a downturn in ABC News found Sen. Obama with a The U.S. attorney in Brooklyn, This index of businesses mentioned in today’s issue of The Wall Street Journal Europe is intended to include all significant references to compa- Howard Beale of this election,” lion of Goldman common stock at the stock market. nine-point lead. Mr. Hart, the Jour- N.Y., has brought charges against nies. First reference to these companies appear in boldface type in all articles except those on page one and the editorial pages. Mr. Hart said. $115 a share, which is 8% below the The Berkshire investment will be a big Mr. Buffett declined to invest in nal’s Democratic pollster, said that brokers who allegedly tricked some shares’ 4 p.m. closing price Tuesday hedge fund Long-Term Capital Man- The survey found that poll was skewed because it sampled institutional investors into buying of $125.05. At Goldman’s roughly boost to Goldman. Even though the firm agement in 1993. After LTCM faced Air France-KLM ...... 9,31 AstraZeneca.9 ...... BP Capital.22...... General Electric.7 ...... Oracle .2...... 2Sen. Obama has lost ground with a disproportionate number of Demo- risky auction-rate securities. $50 billion market value, based on collapse in 1998, its officials ap- Alchemy Partners.24 ...... Bank VTB .22...... Bradford & Bingley.21 ..... GlaxoSmithKline.18 ...... OrbiMed Advisors.6 ...... the independent voters who will be crats. During the savings-and-loan bail- Pandora Media.6 ...... that closing price, exercising those hasn’t posted a quarterly loss since the Alitalia .4...... Bank of East Asia.25...... Bristol-Myers Squibb.6,9 Goldman Sachs Group proached Mr. Buffett again, asking if out 20 years ago, federal prosecu- Alliance & Leicester .21.. Banque Fédérale des British Airways.31 ...... 22,25,34 PepsiCo .1...... 8 warrants would give Berkshire he would be interested in a chunk of tors brought more than 600 cases Amazon.com.32 ...... Banques Populaires .22 British Energy ..... 6,22,36 Google ...... 22,32 Permira .9...... about a 10% stake in Goldman. credit crisis began, its profit has waned. the highflying fund’s risk-arbitrage Pfizer ...... 6,9 against 1,000 defendants. But the American Express.22...... Barclays .8...... BTA Bank .27...... Highland Capital INDEX TO PEOPLE Goldman’s plan to raise capital positionsatafire-saleprice.Mr.Buf- American International Barr Laboratories .18...... Cadogan Management.22 Partners.32...... Powe Capital complicated securities at the heart Group ...... 25,35 Bayer AG.9...... Caisse Nationale des HSBC Holdings .8...... Management.9 ...... comes a day after Morgan Stanley an- fett said he was “pretty intrigued” of today’s crisis make comparable This index lists the names of businesspeople and government regulators Anglo Irish Bank.21 ...... BayernLB.9...... Caisses d’Épargne.22 ... IBM.3...... 2PPG Industries.22...... nounced plans to raise about $8 bil- tion, but the peril it has recently housing and mortgage markets. “As but passed. Later in the LTCM crisis, prosecutions more difficult, investi- Procter & Gamble.22 ...... who receive significant mention in today's Journal. Apple.6...... Berkshire Hathaway 6,25 Capgemini.32 ...... Imeem .6...... lion by selling up to a 20% stake to faced—its stock is down about 50% house prices fall, a huge amount of hedidjoinwithGoldmanandAIGina gators say. Arcandor .9...... Boehringer Ingelheim.9.. . Caterpillar.22 ...... Intesa Sanpaolo.4 ...... ProSiebenSat.1 Media.9 .. Mitsubishi UFJ Financial Group,a this year—underscores the risk financial folly is being exposed,” he bid for the hedge fund, but no such Qantas Airways.31...... For more people in the news, visit Brian Roehrkasse, a Justice De- Assicurazioni Generali .4 Boeing ...... 6,31 Centex.2...... 2Invesco Asset 1 Japanese commercial bank. Mr. Buffettistaking.Thoughthegov- wrote. “You only learn who has been deal was done. Central Huijin Management.6 ...... QMI Security Solutions CareerJournal.com/WhosNews partment spokesman, defended the Investment.25 ...... Johnson & Johnson .1...... 9 Goldman shares surged after the ernment threw the firm much- swimming naked when the tide goes Mr. Buffett has long had a fascina- way the department has responded ...... 9,12,19 Renault .2...... 2 close of regular trading Tuesday, ris- needed aid by allowing it to become out—and what we are witnessing at tion with Goldman and first visited FREE daily access Centrica .3...... 6 Abramovich, Roman.24 ..... Gourgeon, Pierre-Henri Pickens, T. Boone.21 ...... to the crisis: “The FBI continues to 1 J.P. Morgan Chase.22 ...... Reserve Management 36 ing $8.15, or 6.5%, to $133.20. Other a bank holding company, Goldman some of our largest financial institu- the firm when he was 10 years old Chi-X Europe.27 ...... Adelson, Jay.32 ...... 9,31 Potts, Henk .22...... investigate a number of companies to WSJ.com China Investment.25 ...... Kazkommertsbank.27 ...... Reserve Primary Fund 36 financial stocks also rallied in after- still must undertake radical changes tions is an ugly sight.” with his father, according to some- Rite Aid.1...... 9Alierta, Cesar.4...... Harris, Keith.24...... Powe, Rory .9...... for subprime-lending practices, but If you bought today’s paper from Cisco Systems.32 ...... Kimberly-Clark.18 ...... Ashley, Mike.24 ...... Hartnett, Michael .8...... Randall, Peter.27 ...... hours trade. In midday trading on to adapt its portfolio of assets to this Berkshire owns big stakes in one familiar with the matter. By the Citigroup .2...... 2KKM.1 ...... 8Rockwell Collins.6 ...... the department brings criminal a retail outlet, simply register at: Royal Bank of Scotland Banas, Anne.31...... Hice, Jody .1...... 1Rivano, Gianpaolo.4 ...... the New York Stock Exchange on new business model. Wells Fargo & Co. and American Ex- time he was 25, this person said, he prosecutions based solely on the Constellation Energy Kohlberg, Kravis Roberts Bent, Bruce .36...... Hill, David .7...... Ryan, Thomas.18 ...... wsj.com/reg/coupon Group .6...... 9...... Group ...... 9,22 Wednesday, Goldman shares were The biggest challenge will be re- press Co., and Mr. Buffett said re- had a direct line to Sidney Wein- facts and the law. Where we find evi- Sanofi-Aventis.9 ...... Bernabe, Franco.4...... Icahn, Carl .6...... Schellmoser, Friedrich.9 .. Countrywide Financial Laura Ashley Holdings .24 up $3.80, or 3%, to $128.85. ducing the risks embedded in Gold- cently he’s been buying shares of berg, Goldman’s onetime chief. or renew at: wsj.com Seymour Pierce.24...... Blondin, Mark .6...... Isaly, Samuel .6...... Schmidt, Eric .6...... dence of criminal wrongdoing, we ...... 1,35 Lehman Brothers As Congress debated the Trea- man’s trillion-dollar balance sheet. one of them. He wouldn’t say which, Mr. Buffett was one of the first Today's code is: EUROPE-2-609 Siemens .4...... Bollenbach, Stephen.27.. . Keegan, Kevin.24 ...... Sele, Cyrill .2...... 1 will prosecute.” Holdings .... 19,25,35,36 Crédit Agricole.22 ...... Singapore Airlines.31 ..... Booth, Gus .1...... 1Kight, Doug .6...... Simon, Mike .33...... sury’s broad bailout plan for finan- That transformation, which could but Wells Fargo is trading near its people Lloyd Blankfein, now Gold- Investigators say that despite Sinn, Hans-Werner.11 ...... Credit Suisse Group.22 ... Lennar .2...... 2Spirit AeroSystems.6.... . Boreel, Michiel.32...... Klusman, Ric.25 ...... cial firms, the Berkshire news may take years, is almost sure to reduce high and American Express shares man’s chairman and chief executive, CVC Capital Partners .27 LGT Group.21 ...... Sjoerdsma, Taco Sieburgh calls from some quarters to prose- THE WALL STREET JOURNAL EUROPE (ISSN 0921-99) Summit Golf Brands.18 .. Bravo, Rose Marie.27 ...... Kowalewski, Kirk.18...... rev up Republicans who are arguing Goldman’s profitability. In addition, have fallen this year. Berkshire’s went to see when he became presi- cute wealthy bankers who helped Boulevard Brand Whitlock 87, 1200 Brussels, Belgium CVS Caremark.18 ...... Liechtensteinische Caceres, Carlos.11 ...... Lerner, Randy.24 ...... 2...... 1 Telecom Italia.4...... Spinetta, Jean-Cyril.9 ...... that such private investment is supe- it will have to operate within much other financial-services invest- dent of Goldman in 2003. “They just Telephone: 32 2 741 1211 FAX: Business: 32 2 732 1102 Deutsche Bank.8...... Landesbank.21 ...... Telefónica.4...... Cardillo, Peter.22 ...... Lueckemann, Peter.21...... fuel the mortgage bubble, it is un- News: 32 2 741 1600 Editorial Page: 32 2 735 7562 Stadler, Chris.27 ...... rior to a costly taxpayer-funded res- stricter regulatory parameters on a ments include bond-rating firm don’t come any smarter,” Mr.Buffett Digg.3...... 2London Stock Exchange Tesco PLC.1...... 0Chambers, John.32...... Lumme, Timo.7...... clear what crimes they will find at SUBSCRIPTIONS, inquiries and address changes to: Dresdner Bank.9...... Group .2...... 7 Stanley, Erik.11...... cue plan. “People are holding back, competitive field that is more Moody’s Corp. said of Mr. Blankfein in 2006. Telephone: +44 (0) 207 309 7799 Teva Pharmaceutical Chew Choon Seng.31 ...... Magnússon, Eggert.24 ..... Stephens, Elizabeth .8...... the root of the exotic financial vehi- Calling time from 8am to 5.30pm GMT DuPont .2...... 2Mediobanca .4...... Industries.9 ...... Cornelius, James.6 ...... Malmborg, John.18 ...... Svedberg, Marcus.8 ...... and it sounds like Mr. Buffett is try- crowded than the old universe of Mr. Buffett had a trying venture Tuesday, Mr. Blankfein said, “We cles that have sickened banks E-mail: [email protected] Website: www.services.wsje.com DZ Bank .2...... 6Merrill Lynch ...... 8,22 de Silva, Richard.32 ...... Martin, R. Brad.27 ...... worldwide through Dow Jones Third Avenue Thibault, Bernard.12...... ing to lead by example for the finan- Wall Street investment banks. into Wall Street once, and there were arepleasedthatgivenourlongstand- around the world. A more likely out- Advertising Sales Electricité de France Microsoft .32...... Dennerline, Doug.32 ...... McLeod, Lesley.9 ...... International. Frankfurt: 49 69 971428 0; London: 44 207 842 Institutional Tobin, Donald.11 ...... cial community,” said Rep. Thad- Mr. Buffett has been known to some who thought he never would in- ing relationship, Warren Buffett, ar- come of the probes will be hundreds 9600; Paris: 33 1 40 17 17 01 ...... 6,22,36 Mitsubishi UFJ Financial International Value Deseglise, Christian.8 ...... McManus, Sean.7 ...... Tsekhomsky, Nikolai.22 ... deus McCotter of Michigan, a mem- question the value of investment vest in a Wall Street firm again. Just guably the world’s most admired more retail-level fraud cases of the Printed in Belgium by Concentra Media N.V. Printed in Germany by Eli Lilly.1...... 2Group .2...... 5Fund .3...... 6Ebersol, Dick .7...... Merlo, Larry.19 ...... Tvrdy, Pam .6...... Dogan Media Group / Hürriyet A.S. Branch Germany. Printed in Emirates Airlines.31 ...... Morgan Stanley ..8,22,25 ber of the Financial Services Com- banks and generally shuns them on before the market crash of 1987,Berk- and successful investor, has decided type already being brought against Switzerland by Zehnder Print AG Wil. Printed in the United Kingdom by Toll Brothers.22...... Feigen, Richard.24 ...... Miller, Jim.1...... 9Upton, James.8...... Newsfax International Ltd., London. Printed in Italy by Telestampa Energizer Holdings.19 ..... Napster .6...... Vedanta Resources ...4,22 Feldmayer, Johannes.4 .... Miquet-Marty, François 12 van der Heyden, Henry . 10 mittee and Republican leadership. his own deals. The notable excep- shire bought $700 million of to make such a significant invest- brokers, real-estate agents, and buy- Centro Italia s.r.l. Printed in Spain by Bermont S.A. Printed in Ireland European Aeronautic Natixis.2...... 2Viacom .7...... Ferrero, Dominique.22 ...... Morris, Peter.31 ...... Williams, Eric.11 ...... Democratic Sen. Charles Schumer tion has been Goldman. Mr. Buffett Salomon Inc. preferred shares. ment in Goldman Sachs. We view it ers related to falsified mortgage ap- by Midland Web Printing Ltd. Printed in Israel by The Jerusalem Post Defense & Space.31 ..... NBTY .1...... 9Volkswagen.22 ...... Ferrier, Andrew.10...... Nerb, Gernot.11 ...... Group. Printed in Turkey by GLOBUS Dünya BasInevi. Wolff, Russell.7 ...... of New York, a member of the Bank- has a close relationship with Byron To protect his Salomon holdings, as a strong validation of our client plications. Fannie Mae ...... 1,22,35 Nestle.1...... 8Wal-Mart Stores.18 ...... Feuer, Jonathan.27 ...... Newson, Marc.31 ...... Registered as a newspaper at the Post Office. Yarrow, Alan.21 ...... ing Committee and his party’s leader- Trott, a fellow Midwesterner who Mr. Buffett became interim chair- franchise and future prospects.” —Damian Paletta Trademarks appearing herein are used under license from Dow Jones Fonterra Co-operative News Corp..7...... Walt Disney.7 ...... Gadonneix, Pierre ...... 6,36 Owens, Marcus.11 ...... Zeller, Christina.33 ...... & Co. © 2008 Dow Jones & Company All rights reserved. Group .1...... 0Nomura Holdings.25...... WGZ Bank.26 ...... Gann, Debbie .6...... Pang, Joseph.25 ...... Zenkel, Gary.7 ...... ship, called the Berkshire investment heads the firm’s Chicago office. It man in August 1991 after Salomon —Susan Pulliam and Sarah Lueck and Susanne Craig Editeur responsable: Daniel Hertzberg M-17936-2003 Freddie Mac ...... 22,35 Novartis .1...... 2Yahoo .3...... 2Gotta, Mike .32...... Perkins, William O. III . 34 Zulfikarpasic, Adélaïde . 12 “a vote of confidence not only in Gold- was Mr. Trott who brought Mr. Buf- Chairman John Gutfreund was contributed to this article. contributed to this article. 34 THURSDAY, SEPTEMBER 25, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. THURSDAY, SEPTEMBER 25, 2008 3 THE FINANCIAL CRISIS THE FINANCIAL CRISIS Trader profits on rescue, then slams plan McCain to ‘suspend’ presidential campaign working classes, while Republicans raiser for Democratic presidential The next day it rallied and he sold To design his ad, Mr. Perkins He also called on the Commis- tion following the 2001 terrorist at- bailout package on the presidential spokesman Bill Burton. Mr. Perkins spending are saying the plan interferes with candidate Barack Obama and con- out at an average price of $130 a called a favorite artist, Dawolu Ja- Senator will focus sion on Presidential Debates to de- tacks, saying politics must be put race. Both candidates have been put “At 8:30 this morning, Sen. the invisible hand of the free market. tributed $2,300 to the Illinois sena- share, for a net gain of about bari Anderson of Otabenga Jones & lay Friday’s debate, the first of aside for the moment. into difficult situations. To oppose Obama called Sen. McCain to ask gain on ads ripping But the 39-year-old Mr. Perkins is tor’s campaign. But he says he $1.25 million over three days of trad- Associates, a four-man Houston on economic crisis; three scheduled, and he asked Presi- “We must show that kind of patri- the package could appear irrespon- him if he would join in issuing a joint putting cash behind his anger. He doesn’t know where Sen. Obama ing, he said. arts collective. The group explores dent George W. Bush to convene a otism now,” he said. “Americans sible in the face of financial turmoil, statement outlining their shared ‘communist action’ commissioned an African-American stands on the issues he is raising. Trouble was, the stock didn’t African-American themes, and its a call from Obama meeting with congressional leader- across our country lament the fact but support is dicey without a principles and conditions for the arts collective to draw a cartoon de- Last week, he was betting his own rally because of the fundamental name is meant to recall the fate of ship, including himself and Sen. that partisan divisions in Washing- broad national consensus that Treasury proposal, and urging Con- By Michael M. Phillips picting Mr. Bush, Treasury money on Goldman Sachs. strength of the company, Mr. Per- Ota Benga, a Congolese Pygmy put By Elizabeth Holmes Obama. ton have prevented us from address- hasn’t materialized. gress and the White House to act in Secretary Henry Paulson Other investment banks kins said. It rallied because the fed- on display at the Bronx Zoo in New And Laura Meckler “It is time for both parties to ing our national challenges. Now is Shortly after Sen. McCain issued a bipartisan manner to pass such a William O. Perkins III says he and Federal Reserve Board were crumbling, but Mr. Per- eral government announced that it York in the early 20th century. come together to solve this prob- our chance to come together to his statement, the Obama campaign proposal,” Mr. Burton said in an turned a $1.25 million profit trading Chairman Ben Bernanke kins figured Goldman Sachs would rescue Wall Street from its What Mr. Perkins got back was a NEW YORK—Sen. John McCain lem,” he said. “We must meet as prove that Washington is once issued its own, saying the two candi- email to reporters. “At 2:30 this af- Goldman Sachs Group Inc. stock trampling on the graves of was poised for a comeback. own subprime follies, he said. cartoonshowingMessrs.Bush,Paul- said he will “suspend” his presiden- Americans, not as Democrats or Re- again capable of leading this coun- dates are working on a joint state- ternoon, Sen. McCain returned Sen. last week. private enterprise and capi- He liked its low debt levels “The stock did OK because the son and Bernanke planting a flag in tial campaign on Thursday and will publicans, and we must meet until try,” he said. ment on the crisis, a process it said Obama’s call and agreed to join him You would think that would talism. Then he paid and sound decision making; government came in and said, ‘No the graveyard of capitalism, Iwo return to Washington to focus on this crisis is resolved.” The McCain statement comes as was initiated by Sen. Obama when in issuing such a statement. The two count as a pretty good paycheck for $139,104 to run the drawing the investment bank had fa- one can fail,’ ” he said. “It’s capital- Jima-style, with a hammer and the unfolding eco- The Arizona senator compared political figures in Washington had he called Sen. McCain at 8:30 a.m. campaigns are currently working to- the U.S. energy trader. Instead, the as a full-page ad in the Tues- mously bet against the ism on the way up and communism sickle where the field of stars would nomic crisis. In the situation to that facing the na- begun to assess the fallout of the Wednesday, according to Obama gether on the details.” experience left him so angry about day editions of the New subprime-mortgage market on the way down.” normally go. “We’re just concerned the meantime, he the demise of capitalism that he York Times. And he prom- that has brought so much A Treasury spokeswoman de- about what happens to regular called for a delay says he has decided to spend his prof- ises to spend a million more grief to so many. clined to respond directly to Mr.Per- folks,”said RobertA.Pruitt,33years in the presiden- its on advertisements attacking U.S. on ads before he is done. William O. “I just felt that whatever kins. But Mr. Paulson told the Senate old, one of the collective members. tial debate sched- President George W. Bush’s planned “I see it as trickle-down Perkins III the storm was and what- Banking Committee Tuesday that “What these rich people and politi- uled for Friday $700 billion Wall Street bailout. communism,” Mr. Perkins ever bankruptcies hap- the government must act swiftly “in cians are goingto do—wedon’twant night in Missis- The president has run into a wall said. “We have a communist action pened, Goldman would be a survi- order to avoid a continuing series of to be caught ignorant, like we’re not sippi. of skepticism over his plan. Trou- where everybody is paying for the vor,” said Mr. Perkins. “I believed financial-institutionfailuresandfro- watching. The people are watching.” Sen. McCain bled voters are calling their con- benefitofthefewandhopingtheben- that they had access to capital.” zen credit markets that threaten Mr. Perkins said he plans to run a also called upon gressmen. Academic economists are efits will trickle down to everyone So he says he bought Goldman Americanfamilies’financialwell-be- series of antibailout ads nationwide his Democratic churning out sound bites. Demo- else.” Sachs at $129 a share. The stock fell, ing, the viability of businesses both until he has spent all of his Goldman John McCain rival, Sen. cratic lawmakers are demanding Mr. Perkins says he isn’t moti- so he bought more at $100 a share. small and large, and the very health gains. “I’ve got to give that money Barack Obama, that the plan include perks for the vated by politics. He hosted a fund- It fell again, and he bought at $90. of our economy.” back,” he said. to join him in the capital. “It has become clear that no con- sensus has developed to support the administration’s proposal. I do not believe that the plan on the table Financial crisis threatens to weaken U.S. influence will pass as it currently stands, and we are running out of time,” the Ari- Continued from first page model is failing.” much retrenchment is likely to oc- cline, companies may become more clude creating investment banks, zona senator said in a statement is- than in the past, the U.S.’s troubles The extent of the fallout will de- cur. “The fact is that no policy stable, and profitability will shrink. privatizing state-run banks and al- sued by the campaign. “Tomorrow of the past several weeks seem to pend on the length and severity of maker in Europe has a clear vision Japanese bankers also face the lowing government pension funds morning, I will suspend my cam- have done more than any downturn the current crisis. A speedy recov- of what re-regulation would mean,” daunting task of managing former to invest in banks, in a legislative paign and return to Washington.” in recent decades to sow doubt ery could restore some faith in the says Nicolas Véron, finance-policy Wall Street financiers, whose big session that began earlier this about the U.S. approach. That has resilience of the U.S. system. After scholar at Brussels think tank Brue- egos and eye-popping paychecks month. given ammunition to foreign critics previous financial crises, America gel. are so out of place in their own cor- But key South Korean lawmakers while undercutting those who share has gone on to become as strong or Still, Ms. Merkel isn’t the only Eu- porate culture. in recent days questioned whether Russia rift hurts the American preference for capital- stronger. ropean leader sounding a new tone. “Nomura will probably roll out they should even begin to debate re- ism. But America’s problems could un- French President Nicolas Sarkozy, the Japanese style of management,” forms when the U.S. financial sys- Already, the Bush administra- dercut support for its international who campaigned as a pro-American said Azuma Ohno an analyst at tem is stumbling. The privatization U.S. in its effort tion’s proposal to spend $700 bil- advocate of greater capitalism, Credit Suisse. “It may struggle to priorities, including expanding ac- of Korea Development Bank, the lion buying troubled assets from cess for American financial compa- called in a speech to the United Na- keep former Lehman bankers be- largest government-run bank, U.S. banks has shaken confidence in nies in foreign markets, and push- tions on Tuesday for a more regu- cause Nomura generally pays less against Iran should be “reexamined from the be- the dollar among foreign investors ing greater deregulation in conti- lated form of capitalism. and its corporate culture has less of By Jay Solomon ginning,” Lee Jong-koo, a lawmaker who feel the plan could dangerously nental Europe. “The U.S. model had “Let us rebuild together a regu- a work-life balance than foreign em- from the ruling Grand National increase already-high U.S. debt lev- a limited attractiveness for Europe lated capitalism in which whole ployees are used to.” UNITED NATIONS—The Bush ad- Party, said last week. els. That concern could further before,” says Nina Hauer, a Social swathes of financial activity are not The current upheaval could also ministration’s rift with Russia is un- weaken the dollar’s status as the Democrat member of Germany’s par- left to the sole judgment of market accelerate the move to a more dif- Reform proponents may have to dercutting U.S. efforts to enact a dominant global currency. liament. “Now it has lost its attrac- operators,” Mr. Sarkozy said. fuse global-financial architecture, space out the legislation instead of new round of financial sanctions As confidence in American finan- tion entirely.” In Latin America, the U.S. crisis with regional financial capitals play- proposing it all at once, said a gov- against Iran for its nuclear activities. cial stewardship wanes, China and In Europe, the U.S., along with will be a rhetorical victory for politi- ing a bigger role and less dependent ernment official involved in the ef- American diplomats sought to other countries with huge holdings the U.K., represents a deregulated cians who espouse greater state con- on the vagaries of Wall Street and fort who asked not to be named, cit- convene an emergency meeting of of U.S. dollars could also seek to “Anglo-Saxon” version of capital- trol of economies, and who argue the City. Western banks have been ing sensitivity in the ruling party. the five permanent members of the shift more assets elsewhere, hurt- ism, in contrast to Germany’s more the U.S.-backed free market nos- sending top executives to Asia and Success may depend on whether United Nations Security Council ing the already wobbly American consensual form or the strong role trums are at the root of the region’s the Middle East, eager to drum up proponents can “disassociate them- plus Germany this week in New York currency. Xu Xiaonian, a professor of the French state in shaping corpo- stubborn income inequality. business amid still-booming econo- selves with the crisis in the U.S.,” he to discuss implementing a fourth of at the China Europe International rate decisions. America’s track From Venezuela to Ecuador and mies in those regions. said. round of economic sanctions Business School in Shanghai, pre- record of fast-rising productivity Argentina, voters have backed lead- It’s not just established banking Some of the recent response against Tehran. But Moscow de- dicts the dollar will get “weaker and and growth has pressured Europe to ers who espouse direct intervention centers like Hong Kong and Sin- seems like thinly veiled schaden- clined, American and Russian diplo- weaker, no matter what happens.” change its ways—until now. in markets through a variety of unor- gapore that are gaining clout. freude. Russian leaders, whose long- mats said Tuesday, citing more Meanwhile, Russia and others In recent days, German chancel- thodox policies, including price con- Newer regional hubs—Shanghai, time criticism of U.S. international pressing issues it needed to address have expressed increasing concern lor Ms. Merkel, who ran for office as trols, nationalization of industries Mumbai and Dubai, in particular— dominance has intensified since the during this week’s annual U.N. Gen- about the dominance of the dollar in a free-market reformer in 2005 and and in some cases, shirking debt pay- are also attracting top talent from war in Georgia, stepped up criticism eral Assembly meeting. world reserves. “The entire world has shifted to the left since, has be- ments. Leaders who hold these the West. In May, Citigroup Inc. said of America’s financial heft. Presi- “We see no ‘fire alarm’ which economy can't rely on just just one come vocally critical of laissez-faire views nearly came to power in Mex- it would relocate its co-head of in- dent Dmitry Medvedev this month would require us to put off other printing press,” Russian Prime Min- ideas. On Tuesday Ms. Merkel told ico and Peru in 2006. vestment banking, Alberto Verme, blamed the U.S. for causing the glo- things…and meet in emergency [ses- ister Vladimir Putin said over the 15,000 appreciative VW workers Economists say the crisis is more from London to Dubai. In June, Mer- bal crisis, saying the U.S. “has let sion] on the Iranian nuclear problem,” Russian Foreign Ministry spokesman WITH A GLOBAL NETWORK weekend. Russia itself is exposed to that the law providing government likely to hurt countries such as Vene- rill appointed Fares Noujaim, just about everybody else down.” U.S. financial troubles through its protection of their company pro- zuela and Argentina than Brazil and former vice chairman at Bear AndreiNesterenkosaidinastatement. nearly $600 billion in reserves, moted long-term thinking—echoing Chile, which have stuck to free-mar- Stearns, as head of its Middle East After years of being criticized American and Russian diplomats ACROSS 5 CONTINENTS, TRAVELING much of which are invested in dollar a traditional German view that un- ket prescriptions.The U.S. problems business. for increasing the state’s role in the both acknowledged that Moscow’s assets. trammelled capital markets can be are also reshaping the global finan- With their massive interven- economy in Russia, Kremlin offi- coolness to the Bush administra- HAS NEVER BEEN SO SEAMLESS. Recent U.S. government moves destructive. cial industry. Already, Japan has be- tions in the U.S. financial system re- cials haven’t missed chances to tion’s Iran plan is a direct response to take over struggling giants like Last weekend, Ms. Merkel ex- gun playing a larger role, after years cently, the Bush administration and point out Washington’s about-face to the Bush administration’s public With 11 SkyTeam members and a large number of partners to connect you to the Fannie Mae and Freddie Mac have pressed her irritation with the U.S. of relative conservatism in the wake the Federal Reserve have opened on free markets. Mr. Medvedev said criticism of Moscow’s military activ- world, traveling is seamless. More than 16,000 daily flights to 841 destinations across strengthened proponents of bigger and U.K. for resisting stronger regu- of its own financial implosion in the themselves to charges of hypocrisy. the U.S. plan amounted to “partial ities in Georgia. Last week, U.S. Sec- government in China. Mr. Xu points lation for financial markets, which early 1990s. Japan’s Mitsubishi UFJ That’s especially true in Asia, where nationalization of their financial retary of State Condoleezza Rice 5 continents make it easy to get wherever you need to go. www.skyteam.com to the government’s move last Germany tried to promote when it Financial Group Inc. has agreed to many politicians and economic pol- sector.” Moscow’s approaches, he charged Russia had made a “dark week to halt a sharp market decline chaired the G-8 last year. “This cri- buy up to 20% of Morgan Stanley. No- icy makers in Asia remember how said, have been strictly in line with turn” toward authoritarianism by by buying stock in listed state-con- sis shows that markets need rules mura Holdings Inc., Japan’s largest the U.S. and other Western powers what the Kremlin says is its pro-mar- sending its forces into Russia, and trolled companies — one of the and somebody responsible to watch broker, has acquired the Asian and pushed tough, market-oriented solu- ket policy. risked becoming “irrelevant” on the boldest interventions in years by a over them,” says Ms. Hauer, the So- European operations of Lehman tions to the Asian Financial crisis a —Peter Stein in Hong Kong, world stage. President George W. government that had been trying to cial Democrat legislator. “We were Brothers Holdings Inc., which has decade ago, and see a particular Raphael Pura in Kuala Lumpur, Bush this month withdrew support reduce its role in the market. The right to keep certain things, such as filed for bankruptcy. irony to Washington’s response to Sebastian Moffett in Paris, Alison for a nuclear cooperation deal he’d government was “encouraged by mortgage loans, more tightly regu- Wall Street firms’ profitability its own meltdown. Tudor and Miho Inada in Tokyo, promoted with Russia’s former Pres- what the U.S. is doing,” he says. lated.” has consistently been higher than In South Korea, another country Gregory L. White in Moscow, ident Vladimir Putin. “For a liberal economist like my- Most economists in Europe still their Japanese counterparts’, but so hard hit by the Asia meltdown of the David Luhnow in Mexico City, “We’re obviously in a rocky period self, I feel it’s even harder to argue say the region needs more free-mar- has their leverage. Now that the Jap- late 1990s, regulators have pre- John Lyons in Sao Paulo and for our relationship with the Rus- against intervention” because “the ket changes to improve long-term anese own chunks of the U.S. finan- pared 21 bills for the National As- SungHa Park in Seoul contributed sians,” said a senior StateDepartment popular view is that the American growth. And there are limits to how cial system, risk tolerance may de- sembly to consider. The measures in- to this article. officialinvolvedintheIrandiplomacy. 4 THURSDAY, SEPTEMBER 25, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. THURSDAY, SEPTEMBER 25, 2008 33 CORPORATE NEWS MARKETPLACE

SERVICES REAL ESTATE METALS 7 7 7 Taking stock of things amid a stock slump Germany wants to change U.K. home builders asked Vedanta drops proposal Even so, Mr. Lynch is sticking sider how you’ll feel if the S&P falls tic to expect some beautiful rain- in it when the time comes, you’ll Limit risk, diversify with his all-stock portfolio. But 40% or even 50%. Many profes- bow after this storm.” miss it. Messrs. Lynch and Bogle many of us may feel less certain, sional money managers test their If you have money on the side- share a confidence in the long- Deutsche Post tax break to follow code of conduct to simplify its structure to aid your portfolio wondering if we should cover up portfolios against a worst-case linesor invest regularly,lookat cor- term earnings power of the U.S. HE GERMAN gov- RITAIN’s compe- .K.-BASED, India-fo- during the slowdown and head for higher ground. While model to see how they would be af- porate bonds, which the investors economy and companies. Over ernment plans to tition watchdog cused metals and min- Washington and what’s left of Wall fected and adjust accordingly. You say are attractive relative to Trea- time, those companies’ earnings Vedanta Street work outthe details of aplan should do the same. surys, especially if you stick with have grown at an average annual T revoke some of B said the coun- U ing company By Karen Blumenthal the value-added-tax ex- try’s home-building Resources PLC scrapped a to stabilize the financial-services You may think you’re willing to bonds that mature in two to five rate of about 7%, and their stock emptions enjoyed by sector is broadly com- plan to simplify its corporate industry, I checked in with some exchange risk for returns. But as years. The spread between invest- prices have grown as well. n logistics and mailing petitive but asked for structure amid turbulent fi- Watching the titans of Wall top investing gurus to ask what Mr. Lynch points out, in ment-grade corporate bonds and Doesyourswimsuitfit?Acri- company Deutsche a code of conduct to nancial markets and some in- Street unravel this month has been they would tell their friends and investing, “the key or- Treasurys now is about four per- sis can be an excellent reminder to Post AG and extend protect home buyers. vestor concerns. unsettling, to say the least. It brings family to do with their own invest- gan in the body is the centagepoints,upfromonepercent- reflect on your broad financial pic- to mind a famous Warren Buffett ments. Here are their suggestions: stomach, not the age point in mid-2007, ture.Do you needto trim your debt? Associated Press Associated some exemptions to its Fotosearch In a report to be The company said earlier competitors as of 2010. published Thursday, this month that it would reor- quote: “Only when the tide goes out saysMaryJ.Miller,direc- Or increase your savings to account The federal cabinet voted to amend its VAT Act, the Office of Fair Trading said many home buyers ganize its operations into cop- do you discover who’s been swim- for the market’s ups and downs? Is the Ministry of Finance said after the meeting. The experience faults in their new homes, delays in mov- per and zinc, aluminum and ming naked.” the money you’ll need in the next government is taking steps to further liberalize the ing in and problems surrounding the sales process. energy, and iron-ore divisions, rather than the current Before they lost their indepen- three to five years in a safer place postal market and comply with European Commission In response to the findings, U.K. home-building in- structure, where subsidiaries effectively control a mix dence this month, Fannie Mae, than stocks? Of course, if you tally demands to amend the VAT exemption for postal ser- dustry organizations have agreed to introduce a of sometimes competing commodity operations. Freddie Mac, AIG and Merrill vices, the ministry said. Some postal services will lose code of conduct and a redress plan for consumers. Vedanta said the decision not to restructure fol- Lynch were all esteemed members their VAT exemption, such as express deliveries, Kaupthing analyst Kevin Cammack said the industry lowed “changes in global financial markets” and of the Standard & Poor’s 500-stock cash-on-demand shipments and individual and special should welcome the report as the plan allows for feedback from investors, without providing addi- index and ingrained in many inves- services, the ministry said. —Andreas Kissler self-regulation. —Anita Likus tional detail. tors’ portfolios. How ingrained? Peter Lynch, the celebrated former manager of

The gurus’ view of the markets Tips from Peter Lynch, John Bogle Ex-manager’s trial opens and others: Telco catches Libya’s eye n Know your risk tolerance: Change Corbis your asset mix if you find the down- n Take your own tempera- brain.” on Siemens pay to union turn painful. ture. “Market risk is like taking a n Warm up to bonds. John Bo- Sovereign fund seeks Investing in Italy n Bonds have renewed appeal, par- plunge into a cold pool,” says Wil- gle,the79-year-oldfounderofVan- By Mike Esterl spokesman for prosecutors. A Sie- liam Bernstein, author of “The guard Group, has about two-thirds Libyan Investment Authority is ready to buy a stake in holding company Telco. ticularly corporate bonds. a stake of up to 10%; mens spokesman said the Munich- Four Pillars of Investing.” “A lot of of his investments in bond mutual tor of the fixed-income up your personal balance sheet— Below, Telecom Italia’s shareholders as of June 30. Former Siemens AG board mem- based company is cooperating n Don’t abandon stocks. If they people are finding out right now funds and says he sleeps well at division at T. Rowe Price Group. your home equity, retirement ac- Telecom Italia’s debt ber Johannes Feldmayer told a with prosecutors but declined to were a good buy a year ago, they’re what their risk tolerance is.” night because of it. Mr. Bogle, who Ms. Miller also thinks munici- counts,cashaccountsandothersav- court Wednesday that the German comment further on the case, cit- a better buy today. If you are shivering with the counts this downturn as his 10th pal bonds look cheap—and less af- ings—you may find you’re in better Telco Foreign institutional investors 24.98% By Stacy Meichtry engineering giant secretly fi- ing the continuing investigation. n S&P 500 down about 24% from its bear market, confesses that he’s a fected by the credit-quality issues shape than you think. 24.50% Review your personal balance And Giada Zampano nanced an employer-friendly labor Evidence of a company policy to sheet. You may be better off than peak this past October, you’ll be conservative investor. Though he afflicting other areas of the econ- If you need cheering up, think group in a bid to curb the country's bankroll AUB could worsen Sie- miserable if it falls further. In that would generally recommend that omy. High-yield bonds are offering about your taxes. Ms. Miller says Other foreign investors 0.07% you think. MILAN—A Libyan sovereign most powerful industrial union. mens’s relations with IG Metall. case, you should commit to rear- young people have 70% to 80% of a premium as well—if you are will- this is a good time to evaluate your fund is ready to buy a stake in Telco, Telecom Italia group 0.94% Mr. Feldmayer, accused of fun- Prosecutors have accused Mr. ranging your portfolio over time to their investments in stock funds, ing to take on more risk. portfolio for long-term losers that a holding company that controls Ita- Feldmayer of breach of trust in di- Fidelity’s Magellan fund, singled n Swim with stocks, too. Even Foreign companies 3.44% neling Œ30.3 million ($44.6 mil- boost the share of bonds to a range the investments he makes for his would help offset any taxable ly’s largest telecommunications op- lion) to the head of the small labor recting Siemens funds to a consult- out Fannie Mae many times over that’s more comfortable—and grandchildren are in a Vanguard when you hear over and over that gains. If you have losses in a sector erator, in the Italian government’s Italian companies 5.85% group from 2001 to 2006, ing firm owned by the long- the years as a favorite stock. When stick with that mix so that the next balanced fund that is 60% in stocks you should buy low, it can be pain- where you’re still hopeful, you can latest attempt to aid a former state Italian institutional investors 18.23% also said that the pay- time head of AUB. Mr. Feld- the end came, he says, he still held downturn will be more tolerable. If and 40% in bonds. ful to keep buying stock at times sell a losing investment and re- monopoly. ments weren’t his idea mayer, 51, left Siemens it in his own portfolio because he the downturn has already adjusted He’s particularly content with like this. Here’s why the investors place it with something similar, 21.99% The Libyan Investment Author- Other Italian investors Source: Telecom Italia and that he didn’t act last year after he was believed it would post big earnings your asset allocation for you, make his choices because he sees today’s say you should do it: Just as stocks reaping the tax benefit and retain- ity, or LIA, offered to invest as much alone. jailed and released on bail in 2011. He also owned AIG. sure your new investments main- financial problems taking many can dive in a day, they can surge ing your position in the industry. as Œ4 billion ($5.88 billion) in Telco, The statements could in connection with the “I can be just as dumb as any- tain the new mix. months to resolve. “This is a tough fast, too. No one knows when this “That will make you feel better in the controlling shareholder of Tele- A government spokesman de- sure. In March, he laid out a busi- give ammunition to prose- case. A 30-year company body else,” he says wryly. Even if you’re calm now, con- time,” he says. “It’s very unrealis- market will turn. But if you aren’t April, if not this minute,” she says. com Italia SpA, according to a per- clined to comment on the matter. ness plan that included cutting cutors exploring the role veteran, he became a mem- son familiar with the matter. Such The potential investment could costs and improving the quality of of Siemens executives in ber of the management an investment could give LIA as give a much-needed boost to Telco, service, but lacked a clear industrial the money transfers. board in 2003. much as 10% of Telco, the person which took control of Telecom Italia strategy. He has pledged to unveil As his trial opened in In his opening state- said, adding that the size of the in April 2007, and is struggling to an updated business plan by year Nuremberg, Germany, Mr. ment to the court Wednes- Airlines push the envelope on comfort for Airbus A380 stake was still being discussed and overhaul the telecom company’s fi- end. The company, which has about Feldmayer told the court Johannes day, Mr. Feldmayer said he could be smaller. nances. The former state monopoly 83,000 employees, is already mak- that Siemens “financed Feldmayer was asked by a former Sie- Continued from page 31 a concern when the passenger is The LIA offer follows Italian has Œ37 billion in debt and faces fall- ing cost-cutting a top domestic pri- and supported” the small mens management-board age for the industry. But the seat is able to lie fully flat” and that the Airbus A380s by the numbers Prime Minister Silvio Berlusconi’s ing margins at home and abroad ow- ority, and it recently reached an labor group—the Associa- member in autumn 2000 to meet so wide, at 86 centimenters, that seat “provides a high level of pri- recent meeting with Libyan leader ing to stiffening competition and agreement with unions on a plan tion of Independent Employees, with Mr. Schelsky to sign a consult- two slim people could share it. vacy and personal space.” Seat allocation for the new A380, by airline Individual passenger space in each class, by airline Col. Moammar Gadhafi. During the regulatory pressures. Telecom Ital- that will lead to as many as 5,000 known by its German initials ing contract. Payments were ap- The airline says it wanted a seat Emirates so far has only one meeting, Mr. Berlusconi committed ia’s share price has fallen by more job cuts. AUB— to act as a counterweight to proved by the company’s finance wide enough for fliers to keep lap- A380,inservicesinceAugust,sopas- Qantas Singapore Emirates ECONOMY Seat pitch* Seat width Passengers in cm in cm per lavatory Italy to investing $5 billion in Lib- than half since Telco bought the “The Libyan investment would IG Metall, Germany’s largest department, he alleged. tops, books and other things close sengers haven’t yet passed judg- Economy Economy Economy ya’s infrastructure as compensation company. be great news for Telecom Italia. union. He told the court he didn’t He claimed Mr. Schelsky and by. For designers at France’s menton the cabin. Emirates officials 332 399 399 Qantas 79 46 41.5 for occupying the area that is now Prompted by the falling share think any labor laws were broken AUB enjoyed management backing Givenchy, which handled the inte- say the business-class lounge area The group’s problem right now is to Singapore 81 48 36.0 Libya from 1911 to 1943. price, Telefónica has been seeking a solve its financial impasse,” said Gi- because, as far as he knew, Sie- after the labor group’s representa- rior, this created a problem most air- and bar—complete with bar- Libya’s interest in the ailing tele- majority stake in Telecom Italia, ac- anpaolo Rivano, an asset manager mens didn’t directly influence elec- tives helped steer through labor line passengers would love to face. tender—at the back of the plane is a Emirates 84 46 39.9 com operator is the latest example cording to people familiar with the at Gesti-Re in Milan. “The entrance tions of works-council representa- concessions on issues such as pay “The seats are so big you need big hit. Passengers seated at the rear matter. A Libyan stake in Telco tives. He stressed that he wasn’t re- and working hours in the 1990s— lots of pillows,” said Christina of business class might find the par- of Mr. Berlusconi’s coming to the aid of a new shareholder would reduce BUSINESS Leg room of seat Seat width Bed length measures that were opposed by IG tying a bit noisy, but at least Emir- position, in cm in cm in cm of former state monopolies without would bolster the Italian govern- the company’s debt and boost the sponsible for personnel issues and Zeller, who led the project. Each simply had agreed to sign the Metall. seat comes with several cushions, ates doesn’t play music in the bar. the formal use of state funds. Mr. ment’s efforts to ward off a poten- stock in the medium term.” Berlusconi recently rewrote Italy’s tial Telefónica takeover. When checks. IG Metall filed a criminal com- custom-made for leaning, reclining Qantas takes a more traditional Qantas 203 52 203 Telecom Italia also is consider- bankruptcy laws to allow Italian in- Telefónica Chairman Cesar Alierta Under German labor law, compa- plaint against Siemens after Mr. or sleeping. approach with rows of business- Singapore 140 86 193 vestors to take over part of Alitalia recently met with Italian officials to ing spinning off its fixed-line net- nies are prohibited from influenc- Feldmayer’s arrest last year, alleg- Emirates’ business class is far class seats, though with lots of leg- Emirates 122 47 201 SpA, but this has stumbled amid discuss Telecom Italia, he encoun- work into a new company, in order ing representation on works coun- ing that the company had illegally less roomy. Rows are staggered, so room. As a bed, the seat stretches union resistance. tered resistance, according to peo- to attract new investors to fund a cils that safeguard employees’ funded AUB. IG Metall is represent- that as each seat spreads out into a 203 centimenters, which is longer Premium next-generation network, people fa- economy FIRST CLASS Bed dimensions The potential stake by LIA isn’t ple familiar with the matter. rights. ing more than two million indus- bed, it slots into a cubby where pas- than the first-class beds on either 32 miliar with the situation said. It also in cm the only option on the table as Telco Telecom Italia said Wednesday The recipient of the money, Wil- trial workers in sectorwide wage sengers can stick their feet. The cub- Emirates or Singapore. Business is studying the sale of as many as seeks funds to revamp Telecom Ital- that its board, scheduled to meet helm Schelsky, is also on trial, for negotiations this autumn and is by’s top serves as a side table and First class is where all three carri- 72 Business Business Qantas 212x74 ia’s operations, and any deal is sub- Thursday, wouldn’t examine any “ex- 5,000 of its mobile transmission tow- tax evasion, among other things. pushing for an 8% pay increase for minibar for the passenger who’s sit- ers have gone over the top. “We First class 60 76 *Space between a point ers, so as to obtain as much as Œ2 bil- 14 Singapore 198 x 69 on one seat and the same ject to approval by a consortium of traordinary operations.” In a short Mr. Schelsky, 59, has remained in workers. ting in front. While useful, it’s oddly were looking for a level of luxury First class First class point of the seat in front Telco stakeholders, the person fa- statement, issued upon the request lion in new funds, the people said. jail since his arrest last year. From The Nuremberg case is separate high, at around chest-height for a akin to private jets,” says Mr. Simon 12 Emirates 200 x 55 14 Source: the companies miliar with the matter said. The con- of Italy’s market regulator Consob, The head of Italy’s telcommunica- 1984 until last year he headed AUB, from criminal investigations in sev- sitting passenger. at Emirates. sortium includes Spain’s Telefónica the former telecom monopoly said tions regulator, Agcom, said Tues- which traditionally has adopted a eral countries into whether Sie- Moreover, Emirates’ business- Both Emirates and Singapore SA, Italian insurer Assicurazioni the board would examine Thursday day that Telecom Italia didn’t have more conciliatory tone than rival mens bribed foreign customers to class seats are barely wider than have created compartments with Qantas’s first-class video screen Mr. Newson says he and Qantas als, such as carbon-fiber and plas- Generali SpA, Italy’s Benetton fam- “the state of progress … of the sufficient cash flow to invest in a German labor groups in negotia- win infrastructure contracts. The those in coach. Seat rows are also sliding doors for total privacy. Qan- is 17 inches (43 centimeters), while deliberately chose a more re- tic. Early reviews of photos pub- ily and Italian banks Intesa Sanpa- group’s new industrial plan,” next-generation network. He indi- tions with management. scandals have triggered a massive only 122 centimeters apart, which is tas deliberately eschewed a door be- both Emirates and Singapore are strained look that he hopes evokes lished in Australia have been mixed. olo SpA and Mediobanca SpA. among other things. cated that an investment ranging Siemens isn’t being investi- shake-up at Europe's largest engi- less leg room than many cash- cause passenger surveys indicated more flamboyant with 23-inch the early days of mass-market jet “Some people say what I’ve done Telefónica is unlikely to oppose With Telecom Italia’s share price from Œ8 billion to Œ15 billion is gated, but authorities are investi- neering company by sales; it has re- strapped U.S. carriers offer in busi- it felt claustrophobic, says designer screens. These two also opted for a travel in the 1970s. Rather than go- is a little dry, but for me, aviation is LIA’s offer, according to a person near a 10-year low, Chief Executive needed to build up such a network gating an undisclosed number of placed all but one management ness class. Spokesman Mike Simon Mr. Newson. Instead, curved flashier decor of wood-grain panel- ing for a club-room feel, he decided all about functionality,” Mr. Newson close to the company. Franco Bernabe has been under pres- in Italy. other individuals in the case, said a board member since early 2007. says that distance “becomes less of screens offer seclusion. ing and shiny metal detailing. to emphasize the jet plane’s materi- said. 32 THURSDAY, SEPTEMBER 25, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. THURSDAY, SEPTEMBER 25, 2008 5 TECHNOLOGY JOURNAL

controlled machine and can control PERSONALTECHNOLOGY that PC using his or her own mouse and keyboard. The helper can even Walter S. Mossberg transfer files to the remote machine. Cisco expands efforts On the other end, the person be- ing helped can be passive, or can also share control of the computer. in collaborative tools At any time, the person being Help from a techie friend helped can disconnect the session or By Bobby White networking equipment to just move limit the helper to just viewing the bits of data. Now Cisco has an oppor- RYING to help a less-knowl- process. When you run the pro- screen, rather than controlling it. Cisco Systems Inc. made its tunity to sell more-specialized gear edgeable friend or family gram, you are invited to create a The company says it keeps no and software to improve communi- Runs Oracle name with devices that connect cor- T member solve computer free account, which allows you to record of any of the sessions and porate computers. Now it is step- cation and efficiency, he said. problems can be very frustrating— track your sessions and rate peo- that its software encrypts all com- ping up efforts to link people more “Over the last two to three years especially if you can’t sit with him ple who help you. But there’s a munication between the two com- productively. there’s been this shift in how people or her in front of the PC. It can be clearly marked Skip button that puters involved. The Silicon Valley company are starting to communicate on- slow and awkward merely explain- permits you to use the program Wednesday unveiled a slew of prod- line,” said Doug Dennerline, general ing the steps you’d like the other with all its features even without TESTED CrossLoop in two sce- ucts aimed at business users who manager of Cisco’s collaboration- person to perform to diagnose and an account. narios. In one, I used it to help want to collaborate on projects. The software group. “Part of the benefit Data Warehouses solve the problem. The software has a very clear, I my friend Alan configure his offerings include Cisco WebEx Con- is the increase in speed for decision The best approach is to control simple interface. It consists of two new copy of Microsoft Office to nect, an online service designed to making.” remotely the distant computer— large tabbed sections, a grey one save files in the older Office for- integrate tools such as instant mes- A cornerstone of Cisco’s push with the owner’s con- mats. The remote-control saging and Web conferencing with into the collaboration market is We- sent—during the prob- session worked fine, al- conventional lem-solving session. though Alan’s Internet con- business soft- That way, you can di- nection was so slow that ware and rectly manipulate the there were long delays in newer Internet machine while explain- seeing changes occur on his applications ing what you’re doing screen. such as blogs over the phone. In the second scenario, I and wikis, There are a variety hired one of CrossLoop’s which are col- 10x Faster of services and soft- listed consultants for $25 laborative Web ware that allow such to clean up a Sony laptop I sites. remote control. Tools own that was running slug- Cisco will re- for doing so are even gishly. He spent over an lease software preinstalled in obscure hour deleting needless pro- and hardware corners of the Win- grams and removing others upgrades for dows and Macintosh that were unnecessarily set what it calls operating systems. But to launch automatically. He “unified com- many are too compli- carefully consulted me by munica-

cated for average us- phone to make sure he tions”—prod- Cisco ers—even those with wasn’t axing anything I ucts that ex- Cisco’s WebEx Connect shows a kind of virtual workroom, CrossLoop.com enough knowledge to needed or wanted. Again, I ploit Internet- with instant messaging, a click-to-call service and help solve common CrossLoop can be downloaded at crossloop.com. It currently considered the session a based phone personalized ‘widget’ programs. problems. Others cost works only with Windows computers, but the company plans to success. technology— money, or require you release a Macintosh version in a few months. The only problem I saw and for a high- bEx Communications Inc., which to establish an ac- in my tests was that, when end video-conferencing system the networking company acquired Announcing count with a service, helping someone with a called TelePresence. It also is sup- for $3.2 billion in 2007. The com- or are mainly aimed at folks seek- labeled Share, for the person whose Vista machine, you may have to tem- porting the use of software widgets: The World’s Fastest pany has since acquired a handful of ing unattended access to their own machine is to be operated remotely, porarily disable a security-warning small, downloadable programs that other companies aimed at adding remote computers. and a green one labeled Access, for feature called User Account Con- usually are designed to perform one more features to its collaboration of- This week, I tested a remote-con- the remote operator, whom the trol, which pops up frequently and specific function. trol product that is designed specifi- company calls the “helper.” cuts off the connection. ferings. Over the past month, Cisco Database Machine The San Jose, Calif., company cally for collaborative help sessions CrossLoop eventually hopes to acquired email-and-calendar puts the market for such collabora- solicited by the person seeking OR security reasons, Cross- make money by charging the paid start-up PostPath Inc. and Jabber tion products at $34 billion and has help. It is free, simple and can be Loop doesn’t allow its users consultants in its network a fee. But Inc., an instant-messaging company designated it as an important driver used without setting up an account. to gain control of unattended it doesn’t guarantee that they are ef- whose founders helped develop F of growth. But targeting the field re- And it also has an added dimen- machines. The process must begin fective or honest and merely relies technology used by Apple Inc.’s sion: If you have a problem and lack with a person at the remote ma- on the ratings of others who have quires taking on some big competi- iChat and Google’s Googletalk. Microsoft • Hardware by HP a tech-savvy friend or relative who chine clicking the Share tab. That used them. It is theoretically possible tors—including Corp., As Cisco increases its emphasis can help, the company that makes click generates an access code that for such a person to steal your data Google Inc. and International Busi- on software, the company must the software maintains a directory is different for each remote ses- or plant malware on your computer. ness Machines Corp.—as well as build a reputation among corporate of thousands of geeks who can help sion. The person seeking help then Still, if you are helping a friend changes in the company’s role as a customers. Mike Gotta, an analyst you, usually for a fee. gives that code, usually over the or relative with a PC problem, or hardware provider. with the Burton Group, a Midvale, The product is called CrossLoop phone, to the helper. The helper are willing to trust a well-rated During a recent presentation to Utah, market-research firm, esti- • Software by Oracle and can be downloaded at cross- then clicks on the Access tab on his stranger to give you help, Cross- industry analysts, Chief Executive mates that it will take Cisco three to loop.com. It currently works only or her PC, and types in the code. Loop is a simple, effective way to John Chambers said corporate cus- five years to establish itself in the with Windows computers, but the The person on the other end must do the job. tomers have long purchased Cisco’s market. company plans to release a Macin- confirm that he or she wants to go tosh version in a few months. ahead. Only then is the connection Find all of Walt Mossberg’s col- To use CrossLoop, both you opened. umns and videos online, free, at and the person you are helping Once this process is complete, the All Things Digital Web site, must download and install the the helper sees a large window repli- walt.allthingsd.com. Email him at Asian countries will be home free program, a quick and simple cating the desktop of the remotely [email protected]. to four new IBM server centers By William M. Bulkeley ups and small businesses in the U.S., Web’s Digg grows despite media contraction but is spreading. Amazon.com Inc. In a sign of the growing interest has built a widely used business by By Jim Carlton Founded in 2004, Digg has ment brought on by a shift of adver- in outsourcing more computer pro- renting computer time to start-up grown quickly; the company says tising to the Web as well as the eco- cessing, International Business Ma- companies and individuals who Digg Inc., a social-networking monthly visitors to its site have dou- nomic downturn. Although the me- chines Corp. is opening four more avoid the expense of buying and run- site whose users vote on their favor- bled in the past year to more than dia isn’t currently benefiting much “cloud computing” centers. ning their own computers. ite news stories, is launching a ma- 30 million. The site allows users to from Digg’s success, Mr. Adelson The new centers—in South Korea, IBM has been marketing cloud jor expansion even as the general act like editors in choosing what said that is likely to change as more Vietnam, India and Brazil—will bring computing to larger customers in- media industry remains in decline. content is most important or inter- newspapers and other outlets to 13 the number of such facilities IBM cluding giant financial companies The San Francisco-based com- esting. They submit stories, blogs, move their content online. He said has built world-wide. IBM has said it that are trying to avoid the cost of oracle.com/exadata pany said it would double its staff videos and images that users may a local newspaper that publishes is interested in building up its capabili- building their own data centers. from 75 to more than 150 over the vote for—or give them a Digg, as the online can get readers in places far ties in cloud centers, which are instal- Some customers also use the cen- orcall+35318031099 next year, move into a much larger company puts it—and those with beyond its geographic reach via lations of industrial-strength com- ters for special projects. Capgemini headquarters building and begin a the most positive votes are given Digg users recommending its arti- puter servers that can handle process- SA, the Paris-based technology-ser- push into international markets as greatest prominence on the site. cles to others. ing tasks for customers on demand or vices giant, said it used IBM’s cloud part of the expansion, which is be- “I think there’s a pent-up de- Digg, which is privately held and multiple clients at a time. computing center in Dublin to run a 10x performance improvement based on customer tests comparing ing funded by $28.7 million in new mand on the part of the public to re- doesn’t disclose its revenue, faces IBM declined to say how much 30-hour brainstorming session for averageperformanceofOracledatawarehousesonexistingcustomer financing. That investment, led by ally engage with their media,” said competition from other news aggre- the new centers cost. its 20,000 consultants in April. systems versus Oracle Database Machines. Actual results may vary. Highland Capital Partners, follows Jay Adelson, Digg’s chief executive gator sites like Mixx and Yahoo The centers run computer pro- Michiel Boreel, chief technology previous infusions of $11.3 million officer. “What the Internet has en- Inc.’s BuzzTracker. Digg has also grams and store information at re- officer of Capgemini’s Sogeti unit, from other investors since 2005. abled is the public to express them- been mentioned as a possible acqui- mote locations over the Internet said outsourcing the job was As part of the new funding, Rich- selves.” sition target for an Internet giant rather than using dedicated comput- quicker than designing a system for Copyright © 2008, Oracle. All rights reserved. Oracle is a registeredark of Oracle tradem Corporation and/or its affiliates. Other namesmarks may be of theirtrade respective owners. ard de Silva, a partner at Highland, Newspapers and other media, like Google Inc. Mr. Adelson de- ers at desktops or in corporate com- the session in-house. He declined to of Lexington, Mass., will join Digg’s on the other hand, are reducing clined to comment on that specula- puter rooms. The technology origi- disclose how much Capgemini spent board. staff as part of a general retrench- tion. nally attracted cash-strapped start- on the project. 6 THURSDAY, SEPTEMBER 25, 2008 THE WALL STREET JOURNAL. THURSDAY, SEPTEMBER 25, 2008 31 CORPORATE NEWS EDF confirms U.K. deal Boeing, machinists run WSJ.com risk of drawn-out strike Financial gurus offer some advice Getting connected Milan fashion British Energy pact on investing in today’s markets via a techie friend By J. Lynn Lunsford What this means, say people fa- Marni offers its take leaves French firm miliar with the situation, is that the Know your risk tolerance, change your asset mix Walter S. Mossberg reviews on sexy librarians The strike that has idled Boeing strike may easily stretch to 45 days Page 33 Page 32 WSJ.com/Runway still looking overseas Co.’s commercial-airplane factories or longer. In the near term, the 7 and don’t abandon stocks just yet > CrossLoop > > 7 for almost three weeks is showing strike is costing Boeing an esti- By David Gauthier-Villars signs of becoming a protracted mated $100 million in revenue from And Dana Cimilluca standoff between the company and missed airplane deliveries, though its largest labor union. the company would likely collect PARIS—French utility Electric- Officials at Boeing and the Inter- most or all of the lost revenue in the ité de France SA said Wednesday national Association of Machinists long run as it catches up on delayed that its appetite for overseas nu- and Aerospace Workers confirmed work after the strike. Airlines push the envelope on perks in A380 clear projects remained intact, even that neither side has been inclined Despite two weeks off the job, as it confirmed that it would spend to return to the bargaining table, workers are only now starting to feel thanks to efficient new as much as £12.5 billion, or $23.22 with each unwilling to be the first to the financial effects. So far, union Luxuries should get engines. The plane also billion, to acquire British Energy blink on key issues such as job secu- members have missed only one pay- has nearly 50% more PLC, the U.K. nuclear operator. rity and rising health-care costs. The check, and the union is set on Satur- good early reviews; floor area than Boeing State-controlled EDF, which en- result is that progress toward a set- day to begin distributing strike pay Co.’s biggest 747 jumbo tered an agreement to build and op- Press Associated tlement won’t likely move forward of $150 a week to each member. cramped in coach? jet, which was previ- EDF Chairman Pierre Gadonneix Wednesday announced the company’s $23.22 erate a pair of nuclear reactors in until both sides feel more of a pinch— At the same time, most of Boe- ously the largest passen- China last month, plans to build billion purchase of nuclear operator British Energy. By Daniel Michaels the machinists from their lost pay ing’s largest suppliers have been ger plane. But the A380 four machines in the U.S. and hopes And Stefania Bianchi and Boeing from decreased revenue able to continue turning out parts can carry only about 35% to win a tender later this year to and antsy suppliers who feel the rip- with minimal disruption, a practice more passengers than a build two more in South Africa. In the U.K., Mr. Gadonneix said cash plus a certificate pegged to the HE mammoth two-deck 747, which means each ple effects of a strike. they say they can continue for at That is on top of a reactor that EDF buying British Energy would give performance of the company over Airbus A380 may not person gets more space, “As far as our members are con- least 45 days. has started to build in Normandy EDF much-needed production capac- the next 10 years. cerned, we are in this one for the quite live up to its mak- on average. Debbie Gann, a spokeswoman and the four reactors the company ity in the U.K. At the moment, EDF The U.K. government and In- long haul,” said Mark Blondin, aero- er’s marketing hype as The cabin feels room- with Spirit AeroSystems Inc. in plans to build in the U.K. with Brit- produces only half the electricity it vesco Asset Management Ltd., space coordinator and lead negotia- “the eighth wonder of ier than a 747’s and has Wichita, Kan., said that many work- ish Energy. sells in the U.K., leaving it exposed which together effectively own a ma- tor for the 26,800 machinists who theT world.” more storage space, says “We aim to take leadership of the to big swings in wholesale and retail jority stake in British Energy, have walked off the job Sept. 6. after over- ers are on a three-day work sched- But the first three airlines to fly Peter Morris, chief econ- nuclear revival,” EDF Chairman prices. With British Energy staff, agreed to accept EDF’s offer. To bol- whelmingly rejecting a proposed ule, but they are continuing to turn the world’s largest passenger plane omist at Ascend World- Pierre Gadonneix said at a news con- EDF will also gain access to the coun- ster its bid, EDF Wednesday bought three-year contract. out fuselages for Boeing’s single- are pulling out all the stops to help wide Ltd., an aviation- ference in Paris as he announced the try’s largest pool of nuclear engi- a “bunch” of additional British En- Both sides say that during recent aisle 737 fuselage, as well as cockpit travelers forget they’re packed in- consulting firm in Lon- deal to buy British Energy. neers, a key asset for when the ergy stock, a person familiar with communications with federal media- sections for other Boeing jets. side with almost 500 other people. don. Mr. Morris has Yet, Mr. Gadonneix said EDF was French company starts building re- the matter said. tors, union officials have presented Rockwell Collins Inc., which pro- Singapore Airlines, Dubai’s Emir- flown two round-trips to reconsidering its strategy in the actors in the U.K. Merrill Lynch & Co. and BNP a “lengthy list” of items, many of vides a variety of flight electronics to ates Airlines and Australia’s Qantas Singapore in economy U.S. after it failed to buy joint-ven- To finance the acquisition, EDF Paribas advised EDF on the deal. them related to job security and both Boeing and rival Airbus, re- Airways Ltd. are using their new class on Singapore Air- ture partner Constellation Energy has secured an £11 billion loan from UBS AG advised the U.K. govern- work rules. The union says the is- cently asked for as many as 80 em- A380s to push the envelope on cushi- lines A380s. Group Inc. The U.S. power company, a consortium of banks. ment, while Lazard advised the Nu- sues must be addressed before work- ployees to volunteer for a 60-day lay- ness, entertainment and design. “It was noticeably dif- which was seeking financial help Under EDF’s bid for British En- clear Liabilities Fund, which holds ers will accept a new contract. Boe- off as the result of slowing in some ar- The best goodies are, as to be ex- ferent” from a 747, says last week, eventually opted to sell it- ergy, which is subject to review by the government’s 36% stake. British ing has insisted that the union nar- eas. Spokeswoman Pam Tvrdy said pected, in first class. Sin- Mr. Morris. Agence France-Presse/Getty Images; Getty Images (below) self to MidAmerican Energy Hold- European Union antitrust authori- Energy and its board were advised row down that list before it will the Cedar Rapids, Iowa, company had gapore Air’s “Sky Suites” All three carriers are ing Co., a unit of Warren Buffett’s ties, shareholders in the U.K. com- by Rothschild, Gleacher Shacklock, agree to talk. little trouble finding takers. “Some of are so big they include boarding each deck sepa- Berkshire Hathaway Inc. pany will be given the choice be- Citigroup and J.P. Morgan Cazen- “If the list remains as long and as our people also farm, so they’re tak- both a seat and a bed, ap- rately, which means the The EDF chairman said all op- tween to offers: a cash bid valued at ove. Centrica, which will likely buy a detailed as it is right now, it is going ing the time off to harvest.” pointed with sheets and boarding and exiting ex- tions were being studied, including 774 pence—nine pence more than a quarter of British Energy from EDF to be extraordinarily challenging to Boeing officials maintain that dishware designed by perience shouldn’t be another attempt at buying Constel- previous offer that was rejected by later on, is being advised by Gold- find a path forward,” said Doug they offered the machinists the French fashion house very different from exist- lation and the search of alternative some large company shareholders— man Sachs Group and Credit Suisse Kight, lead negotiator and vice presi- “best contract in the aerospace in- Givenchy. Emirates has ing big jetliners. U.S. partners. and a bid comprising 700 pence in Group. dent for human resources for Boe- dustry.” However, union officials two “shower spas” with Singapore Airlines touts its ‘Sky Specific elements of the cabin ing’s Commercial Airplanes unit. say the document contained numer- heated floors, where first- Suites,’ above, for first-class passengers layout that are key to passenger Mr. Blondin said that with an 87% ous “takeaways” that shifted more class fliers can book on the superjumbo A380. An Airbus comfort—such as the amount of leg vote supporting the strike, union offi- costs to employees and opened the 25-minute sessions, includ- A380 flown by Emirates Airlines comes room between seats and the num- cials believe they have the leverage door for the company to do away ing a five-minute shower. with two ‘shower spas,’ left. ber of toilets—are up to each airline. Bristol bid underwhelms ImClone to force Boeing to back down. with thousands of jobs if it chooses. Qantas’s first-class seat And there is no escaping that the su- spreads into a bed that is perjumbo is ultimately a giant peo- By Shirley S. Wang Clone directors [at the current you can be friendly,” he said. “I’ve half the width of a queen- business-class ticket is roughly ple-mover, because economy class price]. We don’t want to double- said to him, ‘If you want to go higher, size mattress. $18,000, similar to on older models, remains a forest of seats. With at ImClone Systems Inc. derided a cross people we feel have been good come talk.’ ” There are also new of- although Qantas says sometimes least 36 passengers per toilet, for ex- higher bid for the company by drug to us over time.” Mr. Isaly said he Bristol said it is obligated by regu- Italian investor group ferings in coach class, first- and business-class passengers ample, the A380 offers no improve- maker Bristol-Myers Squibb Co., hasn’t been contacted by Bristol. latory requirements to go to all share- where all three carriers will be charged extra to fly on the ment over existing layouts for long- while the sweetened offer appeared Bristol’s move turns the tables on holders at the same time with notice are providing electric sock- A380 over a smaller aircraft. haul planes. to gain little traction among ImClone ImClone Chairman Carl Icahn, an ac- of a bid or change in bid. The two could revive Alitalia bid ets in almost every seat Coach fares are the same as on ex- Anne Banas, executive editor of stockholders. tivist investor who has profited hand- companies haven’t held a meeting or and, for a fee, Internet con- isting models, all three carriers say. Web site SmarterTravel.com, says On Monday, Bristol offered $62 a somely through the years by initiat- formal negotiations, according to a By Jennifer Clark was “reasonably optimistic” about a nections—features found Fliers expecting an ever-escalat- And Luca Di Leo feedback at sister site SeatGuru. share, a $2 increase over its July bid, ing his own hostile takeovers. The person familiar with Bristol’s posi- deal to sell the carrier to the consor- until recently only in pre- ing war of amenities may be disap- com has been thumbs-down regard- for the maker of the cancer drug Er- higher bid reaffirms Bristol’s inter- tion. tium of Italian businessmen, thus mium cabins. pointed, however. Air France-KLM ing coach class aboard Singapore ROME—Italian investor group bitux and raised the prospect of a est in a deal while signaling it is wary Apart from raising its bid, which avoiding the company’s liquidation. Qantas, which got its SA, which gets its first A380 next Airlines’ and Emirates’ A380s. Compagnia Aerea Italiana looked Asked by reporters on the side- first A380 last week, has hostile takeover. Bristol Chairman of overpaying for the biotechnology would increase the value of the po- year, plans few novel extrava- “The consensus we’ve gotten is like it could revive its bid for ailing lines of a parliamentary hearing on decked its economy class James Cornelius said in a letter that company. tential deal by about $200 million, gances. “Most of the plane will be that economy class feels like a cattle carrier Alitalia SpA as CAI execu- Alitalia if he sees a deal with CAI by with snack bars, where pas- the company is prepared to solicit But if Bristol’s strategy shows lit- Bristol appears to hope investors filled with seats,” said deputy CEO car,” Ms. Banas says. will favor its bid rather than take a tives met with the government for Sept. 30, Mr. Fantozzi said: “I’d say sengers can grab nibbles “written consents from ImClone tle promise of expediting a deal, it Pierre-Henri Gourgeon. Business class is more luxurious, chance any rival could raise financ- the third time in two days. yes. Things are moving; they will be and drinks. The interior’s stockholders to remove all existing does appear to have escalated the The airlines themselves are pay- but it is still no flying palace. For air- ing amid the current market swoon. gradually solved.” designer, Marc Newson, members of ImClone’s board of direc- war of words between the two New CAI executives met with Premier ing a high price for the fancy seating lines, the business cabin is consid- In his letter to Mr. Icahn, Mr. Corne- Last week, CAI dropped its bid has also carved out extra tors and replace them with five … York pharmaceutical companies. Silvio Berlusconi’s right-hand man, and electrical wiring on the A380. ered the profit sweet spot, poten- lius said “the current extraordinary for Alitalia on Monday after six of leg space from the back of nominees proposed by Bristol-My- Mr. Icahn had rejected Bristol’s Gianni Letta, Wednesday to con- Airbus has faced so many problems market conditions” make it even the airline’s nine unions refused to each seat and engineered a tially combining higher ticket reve- ers.” initial offer earlier this month and tinue discussions over the fate of Ali- installing the highly customized ca- more important that “an orderly and back job cuts and salary levels of- seat that tips up at the nue than coach with greater passen- The latest offer valued the com- talia, according to people familiar bling that the jumbo planes are be- disclosed that another pharmaceuti- transparent process with a clearly de- fered by its rescue plan, following al- front as the back reclines. ger numbers than first class. pany at $4.7 billion. A Bristol spokes- with the situation, after holding a cal company, which he declined to lineated timeline” is needed. But be- most two weeks of negotiations. “It’s a small detail, but ing delivered to airlines some two Ever since British Airways PLC a man said it hasn’t taken any steps to similar meeting Tuesday. name, is considering a $70-a-share cause big drug makers tend to have The airline may have its license re- it makes a difference,” said years behind schedule. Airbus par- decade ago offered the first busi- set the tender offer in motion, but The move comes as Alitalia’s big- European Aeronautic Defense offer. cash on their books, the possibility voked as soon as Thursday, and in Mr. Newson, a Paris-based ent ness-class seat to spread out into a could do so in the next week. gest union, CGIL, said Wednesday it In a letter Tuesday, Mr. Icahn said of another bidder materializing will any case will be put into liquidation Australian designer whose & Space Co. has swallowed billions fully flat bed—gobbling up valuable remained open to talks with CAI, Most of ImClone’s largest share- Mr. Cornelius’s letter contained “in- have more to do with its assessment Sept. 30 if no buyer is found. aviation-inspired furni- of dollars in cost overruns and faced floor space—carriers world-wide which comprises 16 domestic inves- holders are long-term investors who accuracies which are misleading to of ImClone’s product pipeline than Alitalia’s liquidation would se- ture pieces have sold for months of management upheaval be- have been leap-frogging to squeeze tors led by Roberto Colaninno, con- may not be as easily swayed to sell as our shareholders.” He said the mys- credit availability, said Cowen & Co. verely disrupt air travel in Italy and more than $1 million at cause of the problems. Airbus offi- comfort and personal space into trolling shareholder of scooter hedge funds, say analysts. Investors tery suitor has until Sunday to com- analyst Eric Schmidt. Pfizer Inc., leave the airline’s nearly 20,000 em- auction. cials say more delivery delays could dense seating plans. maker Piaggio SpA. and analysts said Bristol’s proposal plete its review of ImClone and move which is thought by many analysts to ployees out of a job. Globe-hoppers will get still crop up. The result onboard both Sin- to replace the existing board isn’t forward with its offer. be the likely secret suitor, has $26 bil- “We confirm our availability,” Mr. Berlusconi, who canceled a the chance to compare the gapore-London round-trip ticket in Emirates now flies to New York Airline executives have fumed at gapore and Emirates is a business likely to attract many votes. In an interview Tuesday, Mr. lion of cash and marketable securi- said a spokesman for the union, trip to the U.N. general assembly in planes directly in coming months, business class, for example, runs for from Dubai, with a round-trip busi- the holdups, but “the A380 is worth cabin that still feels a bit crowded. “We’re not going to give our con- Icahn said he has spoken with Mr. ties on hand, he said. which had rejected CAI’s offer. “We New York to deal with the Alitalia as the three rivals start putting about $6,700 on the airline’s Web ness-class ticket at almost the wait,” said Singapore Airlines Singapore Airlines, however, sent,” said Samuel Isaly, managing Cornelius and invited him to talk fur- ImClone’s shares jumped 6.9% to are just waiting for the government crisis, has said that CAI remained their A380s head-to-head on routes site. The airline says its fancy new $6,600—the same fare as older Chief Executive Chew Choon Seng, makes up for that by giving each pas- partner at OrbiMed Advisors LLC, ther if he is willing to make a higher $63.51 in 4 p.m. Nasdaq Stock Mar- to call upon us.” the only viable option for Alitalia. between London and Sydney. premium-class seats, which are on planes on the route. when Singapore took possession of senger space in an unusual way. The which holds a 4.4% stake in ImClone, offer. He said Mr. Cornelius didn’t ket composite trading Tuesday but Meanwhile, Alitalia’s govern- —Sofia Celeste Singapore Airlines is flying to both the A380 and some of its other Qantas plans its first flight, to its first superjumbo last fall. leg room between rows is a comfort- or 3.84 million shares. “We don’t call again before putting out the new lost 15 cents in early-afternoon trad- ment-appointed bankruptcy com- and Valeria Santoro London, Tokyo and Sydney from Sin- planes, cost more than its older Los Angeles, from Melbourne, Aus- Why is the plane so special? For able 140 centimeters, roughly aver- think we should overthrow the Im- bid. “It’s absurd to be hostile when ing Wednesday. missioner, Augusto Fantozzi, said he contributed to this article. gapore with its six A380s. A Sin- seats. tralia, on Oct. 20. The round-trip one thing, it’s very quiet inside, Please turn to page 33 30 THURSDAY, SEPTEMBER 25, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. THURSDAY, SEPTEMBER 25, 2008 7 BLUE CHIPS & BONDS CORPORATE NEWS THE MART Below, a look at the Dow Jones Stoxx 50, the Dow Jones Industrial AverageP/E: nil Major players & benchmarks biggest and best known companies in Europe, including the U.K. LAST: 10825.17 t 29.00, or 0.27% Olympics spark contest BUSINESS OPPORTUNITIES BUSINESSES FOR SALE YEAR TO DATE: t 2,439.65, or 18.4% Dow Jones Stoxx 50: Wednesday’s best and worst… OVER 52 WEEKS t 3,052.98, or 22.0% MEDICAL BILLING COMPANY among TV broadcasters Turn-Key—Relocatable Market value, Previous in billions close, in STOCK PERFORMANCE Gross $540K Nets $225K Company Country Industry of US$ local currency Previous session 52-week Three-year 12500 “This is the nature of our busi- All doctor's offices under contract UBS Switzerland Banks $54.1 20.08 4.86% –63.6% –59.6% Record audiences ness,” said Gary Zenkel, NBC Olym- Asking $200K Royal Bk of Scot U.K. Banks 64.4 2.10 3.32 –51.5 –53.8 pics president. “We all recognize the 50–day for Beijing Games best properties and we go for them.” Call 734-337-3262 Deutsche Bk Germany Banks 43.2 55.50 3.11 –37.9 –28.7 moving average 12000 t NBC Universal paid $1.5 billion Soc. Generale France Banks 55.4 63.95 2.46 –42.1 –27.4 recast media plans for the U.S. media rights to the 2006 CAPITAL WANTED Assicurazioni Gen Italy Full Line Insurance 47.5 22.97 1.59 –26.1 –4.2 11500 and 2008 Olympics. In 2003, it com- By Matthew Futterman mitted $2.2 billion for the rights to Anglo Amer U.K. General Mining $49.9 20.08 –5.99% –37.7 16.3 the 2010 and 2012 Olympics, which 30% (PLUS) 11000 Four weeks after the Chinese ex- will take place in Vancouver and Lon- ArcelorMittal Luxembourg Iron & Steel 83.4 39.25 –4.07 –28.6 ... Potential tinguished the Olympic flame, U.S. don. The bid included a $200 mil- Telefonica S.A. Spain Fixed Line Telecom 114.1 16.54 –3.73 –15.7 23.8 High broadcasters are crunching a new lion IOC sponsorship from GE. Annual Returns UniCredit Italy Banks 65.0 3.32 –3.42 –44.6 –29.5 10500 Close set of numbers in anticipation of a Fox, whose parent company, Principal Secured! Barclays U.K. Banks 52.1 3.46 –3.29 –40.5 –38.4 Low bidding war next year for media News Corp., also owns Dow Jones, rights to the Games in 2014 and publisher of The Wall Street Jour- Limited Positions 10000 2016. nal, bid $1.3 billion. Disney’s Available ...And the rest of Europe’s blue chips 27 3 11 18 25 1 8 15 22 29 5 12 19 “We’ve all stopped and reached ESPN/ABC proposed a revenue-shar- July Aug. Sept. 1-210-745-0571 Latest, Latest, for our calculators again,” said ing plan. Market value, in local STOCK PERFORMANCE Market value, in local STOCK PERFORMANCE E-Mail: Note: Price-to-earnings ratios are for trailing 12 months David Hill, chief executive of News The 2014 Games will take place 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 [email protected] Corp.’s Fox Sports. in Sochi, Russia. The IOC will deter- Credit Suisse Grp 56.6 54.35 1.59% –29.1% –6.5% Siemens 90.6 67.55 –0.81% –28.5% 5.7% www.30PerCentPlus.com Switzerland (Banks) Germany (Electronic Equipment) DJIA component stocks The shift comes after General mine the location of the 2016 Sum- CAREER SERVICES L.M. Ericsson Tel B 30.3 66.90 1.52 –47.4 –52.7 BP 186.4 4.87 –0.92 –14.1 –28.3 Electric Co.’s NBC Universal unit re- mer Games in October 2009. The fi- Brokers Welcome Sweden (Telecom Equipment) U.K. (Integrated Oil & Gas) Volume, CHANGE Stock Symbol in millions Latest Points Percentage wrote the playbook for selling the nalists are Madrid, Tokyo, Chicago Intesa Sanpaolo 67.1 3.86 1.45 –28.5 –0.8 Deutsche Telekom 67.1 10.49 –0.94 –23.9 –30.7 Games across multiple media plat- Italy (Banks) Germany (Mobile Telecom) AT&T T 21.40 $28.98 0.23 0.80% and Rio de Janeiro. During the past 10-14% Private Notes Available in TX BNP Paribas S.A. 87.4 65.35 1.27 –12.0 5.2 GlaxoSmithKline 125.8 11.89 –0.96 –9.8 –17.5 Alcoa AA 12.20 25.62 0.03 0.12% forms. The unit garnered 214 mil- two decades, U.S. broadcast rights Downtown - Houston, TX France (Banks) U.K. (Pharmaceuticals) AmExpress AXP 6.20 37.50 –0.78 –2.04% lion unique television viewers for have generally increased 10% to 30% §Commercial Office Bldg 100% Leased by Iberdrola S.A. 52.5 7.17 0.70 –30.3 22.9 HSBC Hldgs 192.7 8.66 –1.03 –5.3 –5.9 BankAm BAC 43.00 33.07 –0.23 –0.69% the Beijing Games, a record that sur- during each round of bidding, de- Spain (Conventional Electricity) U.K. (Banks) National Tenant Boeing BA 5.10 57.36 0.05 0.09% prised Dick Ebersol, chairman of spite dwindling television ratings. § 12 month Bridge Loan, 55% LTV ENI 113.7 19.35 0.52 –26.0 –22.3 Sanofi-Aventis S.A. 86.9 45.06 –1.03 –25.4 –33.8 Caterpillar CAT 5.80 61.74 –1.80 –2.83% NBC Sports and Olympics. The IOC plans to sell the media §$1.85MM - 1st lien - 10% return Italy (Integrated Oil & Gas) France (Pharmaceuticals) § Buy Full or Partial interest in note BASF 48.0 34.57 0.49 –28.5 12.0 Bayer 60.8 54.20 –1.04 –3.6 77.4 Chevron CVX 10.40 85.23 –0.23 –0.27% Now sports broadcasters are try- rights before it chooses the host city § Professional Servicing Included Germany (Commodity Chemicals) Germany (Specialty Chemicals) Citigroup C 63.10 18.96 –1.03 –5.15% ing to evaluate that audience, in- for 2016. § IRA MONEY QUALIFIES! Diageo 50.7 9.77 0.41 –10.0 20.3 Daimler 54.2 38.31 –1.06 –44.7 –16.1 CocaCola KO 9.90 50.19 –0.49 –0.97% cluding the 52 million unique visi- As the Beijing Games ap- U.K. (Distillers & Vintners) Germany (Automobiles) Call today: (512) 249-2800 Disney DIS 12.40 31.77 –0.76 –2.34% tors to NBC’s Olympics Web site and BHP Billiton 59.5 14.40 0.35 –15.2 58.5 Roche Hldg Part. Cert. 112.6 174.50 –1.08 –17.6 –1.4 proached, NBC Universal was con- www.texasprivatenotes.com U.K. (General Mining) Switzerland (Pharmaceuticals) DuPont DD 7.00 43.74 –0.95 –2.13% 75 million video streams. Was it cerned about the low ratings that TX Broker License # 21358 Allianz SE 66.7 100.55 0.31 –37.4 –9.7 Total S.A. 151.9 43.67 –1.14 –24.0 –22.0 ExxonMobil XOM 23.40 78.03 0.34 0.44% thanks to viewers’ interest in China Olympic Games in Asia usually gen- Germany (Full Line Insurance) France (Integrated Oil & Gas) GenElec GE 57.70 24.59 –0.36 –1.44% or swimmer Michael Phelps’s his- erate. NBC Universal created a new Austin, TX Banco Santander 96.7 10.54 0.29 –22.0 –3.2 France Telecom 74.8 19.50 –1.19 –15.8 –19.1 GenMotor GM 16.70 10.35 –0.37 –3.45% toric performance? After years of LOAN NEEDED Spain (Banks) France (Fixed Line Telecom) HewlettPk HPQ 19.10 46.78 –0.10 –0.21% $2.35M 1st Deed of Trust British Amer Tob 67.4 17.97 0.11 1.1 51.0 GDF Suez 113.0 35.15 –1.29 –2.3 25.0 declining ratings, can the Olympics Direct to Principal Borrower HomeDpt HD 19.40 25.02 –0.24 –0.95% U.K. (Tobacco) France (Multiutilities) generate a major revenue stream The Olympics are a 10% Interest + 1 Point Intel INTC 59.20 18.70 0.07 0.38% AXA S.A. 68.1 22.51 0.04 –27.7 0.4 Unilever 49.1 19.55 –1.34 –11.2 –1.9 from digital advertising? 60% LTV—24 Month Term France (Full Line Insurance) Netherlands (Food Products) IBM IBM 6.00 116.46 1.10 0.95% 18 Acre Prime Retail Tract “That is the billion-dollar ques- premium BUSINESS OPPORTUNITIES BUSINESS SERVICES Main & Main Intersection E.ON 101.6 34.63 ... –19.8 39.6 Nokia 75.9 13.61 –1.38 –48.9 0.1 JPMorgChas JPM 24.70 40.50 –0.06 –0.15% tion,” Mr. Hill said. Call 512-633-4397 Germany (Multiutilities) Finland (Telecom Equipment) JohnsJohns JNJ 10.70 68.19 0.04 0.06% At stake are billions of dollars destination for Banco Bilbao Viz 62.8 11.42 –0.17 –30.5 –21.4 Nestle S.A. 164.8 46.84 –1.68 –9.1 23.0 KftFoods KFT 7.50 32.60 0.01 0.03% Spain (Banks) Switzerland (Food Products) in rights payments the Interna- REPRESENTATIVE-WEB BASED HEDGE FUND COMPANIES McDonalds MCD 8.30 61.43 –0.35 –0.57% SAP 71.5 39.14 –0.17 –4.9 9.3 Koninklijke Philips Elec 30.0 19.53 –1.81 –37.0 –11.9 tional Olympic Committee and lo- advertisers. National firm seeks representatives nationwide. Germany (Software) Netherlands (Consumer Electronics) Merck MRK 9.70 31.47 0.72 2.34% Creators of a unique, non-correlated, Stock Option cal organizers use to help cover the Trading Structure w/ exceptional & consistent Tesco 55.6 3.82 –0.21 –12.4 22.3 ABB 47.9 22.44 –2.86 –24.6 145.0 Microsoft MSFT 69.30 25.72 0.28 1.10% No competition. Work from home. Full U.K. (Food Retailers & Wholesalers) Switzerland (Industrial Machinery) costs of staging the Games. U.S. profitpotentialseeksapartnertofundtestaccount Pfizer PFE 36.70 17.99 –0.02 –0.11% Time/Part Time. 100K + potential income. & who will be given exclusive licensing rights. Novartis 142.2 58.55 –0.26 –9.1 –10.3 Astrazeneca 66.2 24.60 –3.04 1.8 –6.8 ProctGamb PG 11.70 68.74 1.46 2.17% rights accounted for about half of method of measuring audience as a Switzerland (Pharmaceuticals) U.K. (Pharmaceuticals) Please Fax resume to: Can be basis for a fully transparent, liquid, non- 3M MMM 5.30 68.57 –0.43 –0.62% the $3 billion in world-wide media kind of insurance policy. The new correlated, & exceptionally performing Hedge Fund. Royal Dutch Shll 112.1 21.55 –0.37 –26.1 –20.9 Vodafone Grp 130.1 1.21 –3.25 –31.4 –19.1 formula combined the number of 561-697-8370 U.K. (Integrated Oil & Gas) U.K. (Mobile Telecom) UnitedTech UTX 5.50 59.63 –0.52 –0.86% sales for Beijing. Confidentially contact Jay 708.326.4710 television viewers with Internet us- Rio Tinto 78.6 39.92 –0.77 –2.0 70.2 ING Groep 54.3 17.81 –3.26 –42.3 –27.8 Verizon VZ 15.10 31.28 0.23 0.74% Valuing media rights is a chal- U.K. (General Mining) Netherlands (Life Insurance) WalMart WMT 16.20 58.92 0.52 0.89% lenge because no one knows exactly ers and people watching highlights Fixed Returns of: PROFESSIONAL SERVICES how fans will follow the Olympics on mobile phones. 14 - 16% Annually Sources: Dow Jones Indexes; WSJ Market Data Group Source: WSJ Market Data Group For Sale: Aerospace Component Business six or eight years from now. Four The concerns were unfounded. § Interest paid quarterly Human-rights controversies and in- § 135% secured by real estate US $35 Million: 2.3 multiple of annual sales, SCREENWRITER/DIRECTOR years ago, the IOC licensed Internet § Superb for IRA’s & pension plans located in So. California w/all Certifications ISO coverage in eight countries for the terest in China turned the Olympics § Less vulnerable than stocks 9001, AS9001, NIST, NVLAP (FQA), NADCAP INDIE AWARD-WINNER Athens Games. This year, the Swit- into a political event as much as a § Bonded and Insured (NDT) from US Dept. of Defense, European sold to major film studios. HIRE ME to turn your Hedge funds Credit-default swaps: European companies zerland-based organization issued sports competition. Then swimmer Keystone State Capital Corp. Union, other countries. Strategic supplier of amazing idea or life into film/tv. Share credit as 888-828-9916 fasteners for defense and commercial aviation, "writer." Repped by top agency. Can produce Tracking Dow Jones TOTAL RETURN for rolling periods, net of fees* Michael Phelps, whose races were At its most basic, the pricing of credit-default swaps measures how much a buyer has to pay to purchase-and Internet licenses in 187 countries, submarines, missiles, etc. Business includes and/or help sell. Fun involvement. Hedge Benchmark One week One month One quarter Year to date One year patents, trademarks, long term leased factory how much a seller demands to sell-protection from default on an issuer's debt. The snapshot below gives a said Timo Lumme, director of televi- broadcast live in prime time, began 310-924-5682 Convertible Arbitrage -3.67% -7.23% -10.0% -15.0% -14.8% sense which way the market was moving yesterday. his unprecedented run of eight gold Caribbean Marine Business with machinery, trained work force, certified sion marketing for the IOC. NBC Uni- laboratory, inventory, strategic customer list, [email protected] credit Merger Arbitrage 0.00% -3.87% -3.1% -2.5% -1.3% medals. Ratings were the highest for Marine parts-service business & standby power contracts. Limited competition in rapidly growing Event Driven -0.23% -3.56% -7.4% -5.7% -6.2% versal provided more than 2,000 located in the BVI. High net profit w/ low tax hours of Internet coverage of all 30 a non-U.S. Olympics since Barcelona market. Serious parties contact: Distressed Securities -4.72% -6.93% -10.3% -14.0% -15.7% Showing the biggest improvement... And the most deterioration in 1992, when television viewers had rate. Turnkey w/ retiring owners assistance. [email protected] § Fax: 1 (760) 202-9902 TRAVEL Equity Market Neutral -0.85% -2.53% -5.2% -4.2% -2.4% Summer Olympic sports. Large inventory incld. Solid, appreciating markets & far fewer entertainment options. Equity Long/Short -0.45% -4.23% -9.8% -7.1% -2.7% CHANGE, in basis points CHANGE, in basis points “No one would have guessed investment. $3.9M. Yesterday Yesterday Five-day 28-day Yesterday Yesterday Five-day 28-day IT Training Firm in sports coverage would have “We figured going in if Phelps [email protected] Save 60% First/Business *Estimates as of 09/23/08, after fees; Source: www.djhedgefundindexes.com Ld Secs 293 –17 441 Allied Irish Bks 248 20 –47 90 could get on a roll, this could be High-End Niche changed the way it did,” Mr. Lumme 612-619-5782 Major Airlines. Corp. Travel dealmakers Brit Ld 428 –14 –6 60 Tate & Lyle 213 21 –3 31 huge,” ESPN’s Mr. Wolff said. Midwest. Multi-media, multi-channel www.cookamerican.travel Credit derivatives said. “We ask for the broadest certification courses. 2008E Sales $5M. (212) 201-1824 Zurich Ins 87 –2 –40 4 ProSiebenSat 1 Media AG 799 24 –1 64 After 34.9 million viewers tuned EBITDA $1.2M amount of coverage and the maxi- à As with all investments, WE WILL NOT BE UNDERSOLD Spreads on credit derivatives are one way the market rates Smurfit Kappa Fdg 492 –2 –43 –11 Seat Pagine Gialle SpA 1261 26 57 298 into the Opening Ceremonies, execu- mum amount of choice. How that appropriate advice should be obtained prior COOK creditworthiness. Regions that are treading in rough waters can Danske Bk A S 96 –2 –7 26 Fortis NV 180 33 23 75 tives realized that if that many peo- An American happens is left up to the partner in www.woodbridgegrp.com C de Aho Y Monte de Piedad de Madrid279 –2 –43 40 Dexia Cr Loc 405 33 38 199 ple would watch a glorified parade, to entering into any binding contract. à see spreads swing toward the maximum—and vice versa. Indexes the territory.” 203-389-8400 x 207 Express Rep. WestLB AG 103 –2 –29 24 Ineos Gp Hldgs 1455 38 –17 205 this wasn’t going to be the typical, below are for five-year swaps. The Olympics are one of the few Svenska Handelsbanken AB 74 –1 –5 15 Glitnir banki hf 1319 42 219 449 sparsely watched Asian Games. major sporting events that families Markit iTraxx Indexes SPREAD RANGE, in pct. pts. Alliance Boots Hldgs 657 –1 –79 ... Fortis Bk SA NV 227 45 44 110 At the moment, Viacom Inc.’s Mid-spread, since most recent roll follow, making them a premium des- Scottish & Newcastle 63 –1 –9 6 Kaupthing banki hf 1193 93 277 425 CBS remains the lone skeptic among Index: series/version in pct. pts. Mid-price Coupon Maximum Minimum Average tination for advertisers. Europe: 9/1 1.10 102.25% 0.02% 1.56 0.64 0.95 Source: Markit Group major broadcasters. STOP The Games also carry the intangi- Eur. High Volatility: 9/1 2.13 101.85 0.03 2.66 1.23 1.77 Sean McManus, president of CBS ble value of allowing a broadcaster Europe Crossover: 9/1 5.78 102.50 0.07 6.40 4.00 5.14 News and Sports, interpreted NBC’s US: Bank revenues from equity capital markets to wrap itself in the multicolored, Asia ex-Japan IG: 9/1 1.85 102.65 0.03 2.30 0.85 1.41 recent success as unique to Beijing five-ringed flag—one of the most and the live broadcasts of Mr. Japan: 9/1 1.45 103.32 0.02 2.00 0.65 1.16 Behind every IPO, n Equity capital markets n Debt capital markets (both in billions, left axis) SEARCHING recognized and highly regarded Note: Data as of September 23 follow-on or Phelps’s races. brands world-wide. convertible equity “It hasn’t caused us to drop ev- 6 60% “We are looking at it with some WSJ.com Spreads In percentage points offering is one or ECM as a percentage of total erything,” Mr. McManus said. It's Time to get Connected to Your Next Businesss Adventure real effort,” said Russell Wolff, man- more investment (right axis) He cited the difficulty NBC will Business Opportunities ¬ Businesses For Sale ¬ Capital Available Follow the markets throughout Spreads on five- 3.00 t aging director for ESPN Interna- Index roll banks. At right, have broadcasting any major live the day, with updated stock year swaps for Europe High Volume 4 40 tional, who is overseeing the bid- t 2.25 investment banks events in prime time from London, quotes, news and commentary corporate debt; ding process for Walt Disney Co.’s historical and year- which is five hours later than the THE MART at WSJ.com/Europe. based on Markit 1.50 ABC/ESPN unit. “We would love to Eastern U.S. Doing so would force

iTraxx indexes. to-date revenues 2 20 Connecting You to Your Next Business Adventure t be in the hunt.” Also, receive email alerts that 0.75 from global equity- the British to schedule competi- For NBC Universal, which will summarize the day’s trading in Europe capital-market tions in the middle of the night. Every Tuesday, Wednesday, Thursday & Saturday 0 broadcast the Games at least “I don’t see that happening,” Europe and Asia. (ECM) deals Tel: 44-20-7842-9600 or 49-69-971-4280 To sign up, go to April May June July Aug. Sept. 0 0 through 2012, the anticipated bid- said Mr. McManus, “though I cer- 2008 WSJ.com/Online Today 2002 2003 2004 2005 2006 2007 2008 ding war is the welcome price of tainly wouldn’t put it past my good Source: Markit Group Source: Dealogic success. friend Dick Ebersol to ask.” 8 THURSDAY, SEPTEMBER 25, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. THURSDAY, SEPTEMBER 25, 2008 29 FOCUS ON CENTRAL AND EASTERN EUROPE GLOBAL MARKETS LINEUP

Commodities Prices of futures contracts with the most open interest Currencies London close on Sept. 24 EXCHANGE LEGEND: CBOT: Chicago Board of Trade; CME: Chicago Mercantile Exchange; ICE-US: ICE Futures U.S.MDEX: Bursa Malaysia Per In Per In Derivatives Berhad; LIFFE: London International Financial Futures Exchange; COMEX: Commodity Exchange; LME: London Metals Exchange; AMERICAS Per euro In euros U.S. dollar U.S. dollars EUROPE Per euro In euros U.S. dollar U.S. dollars NYMEX: New York Mercantile Exchange;ICE-EU: ICE Futures Europe ONE-DAY CHANGE Contract Contract Argentina peso-a 4.5478 0.2199 3.1008 0.3225 Euro zone euro 1 1 0.6818 1.4667 ‘Frontier’ investing withstands higher risk Commodity Exchange Last price Net Percentage high low Brazil real 2.7000 0.3704 1.8410 0.5432 1-mo. forward 0.9999 1.0001 0.6817 1.4669 Corn (cents/bu.) CBOT 563.00 2.75 0.49% 799.25 258.50 Canada dollar 1.5176 0.6589 1.0348 0.9664 3-mos. forward 1.0008 0.9992 0.6824 1.4655 Deseglise, global head of emerging the Soviet government will not shy Soybeans (cents/bu.) CBOT 1187.00 unch. unch. 1,636.75 622.00 1-mo. forward 1.5171 0.6592 1.0344 0.9667 6-mos. forward 1.0040 0.9960 0.6846 1.4608 Russian show of force markets at HSBC Global Asset Man- away from military force in order to Czech Rep. koruna-b 24.352 0.0411 16.604 0.0602 A global perspective Wheat (cents/bu.) CBOT 730.25 –20.25 –2.70% 1,284.25 430.00 3-mos. forward 1.5163 0.6595 1.0338 0.9673 agement. Mr. Deseglise helps run protect local interests and its re- 6-mos. forward 1.5171 0.6591 1.0344 0.9667 Denmark krone 7.4610 0.1340 5.0871 0.1966 Returns of selected stock indexes from all corners of the world, through Aug. 29: Live cattle (cents/lb.) CME 104.200 0.750 0.72 115.325 96.900 isn’t likely to cool HSBC’s New Frontiers fund, which gional sphere of influence,” says Chile peso 790.01 0.001266 538.65 0.001856 Hungary forint 240.72 0.004154 164.13 0.006093 Cocoa ($/ton) ICE-US 2,757 55 2.04 3,273 1,845 offers a fund sold to select institu- Four-year average Elizabeth Stephens, a political-risk Colombia peso 3137.75 0.0003187 2139.40 0.0004674 Malta lira 0.4296 2.3275 0.2929 3.4137 Coffee (cents/lb.) ICE-US 135.65 0.75 0.56 178.90 123.40 interest in region tional and high-net-worth inves- One-year return annual return analyst at Jardine Lloyd Thompson Ecuador US dollar-f 1.4666 0.6818 1 1 Norway krone 8.2405 0.1214 5.6186 0.1780 Sugar (cents/lb.) ICE-US 14.10 0.16 1.15 15.85 9.89 tors. “There is inflation. There is the Ltd., a consultancy. “Naturally, this Mexico peso-a 15.7985 0.0633 10.7718 0.0928 Poland zloty 3.3271 0.3006 2.2685 0.4408 S&P/IFCG frontier-market composite –8.19% 23.85% Cotton (cents/lb.) ICE-US 61.35 –0.95 –1.52 98.45 59.20 By Joel Sherwood credit squeeze. There are political- threatens the emergence of these Peru sol 4.3384 0.2305 2.9580 0.3381 Russia ruble-d 36.659 0.02728 24.995 0.04001 Crude palm oil (ringgit/ton) MDEX 2,318.00 13 0.56 3,665 2,020 stability issues.” fledgling economies as they enter Uruguay peso-e 30.360 0.0329 20.700 0.0483 Slovak Rep. koruna 30.2863 0.03302 20.6500 0.04843 S&P/IFCG emerging-market composite –13.17 24.51 Cocoa (pounds/ton) LIFFE 1,529 27 1.80 1,706 979 Russia’s military push into Geor- Still, “over the medium-term, the next important stage of eco- U.S. dollar 1.4666 0.6818 1 1 Sweden krona 9.6638 0.1035 6.5890 0.1518 Robusta coffee ($/ton) LIFFE 2,160 10 0.47 2,747 1,711 gia is ruffling an investment craze the macroeconomic and financial S&P Global 1200 –11.46 9.73 nomic growth.” Venezuela bolivar 3149.34 0.000318 2147.30 0.000466 Switzerland franc 1.5958 0.6266 1.0881 0.9191 in Eastern Europe, but fund man- case for investing in the frontier “It does have more tension,” Es- Copper (cents/lb.) COMEX 310.65 –4.55 –1.44 404.50 220.00 ASIA-PACIFIC 1-mo. forward 1.5930 0.6278 1.0861 0.9207 S&P 500 (U.S.) –11.14 5.82 agers say the movement should markets is very powerful,” he says. tonian Finance Minister Ivari Padar Gold ($/troy oz.) COMEX 895.00 3.80 0.43 1,048.00 437.00 Australia dollar 1.7507 0.5712 1.1937 0.8378 3-mos. forward 1.5890 0.6293 1.0834 0.9230 Silver (cents/troy oz.) COMEX 1344.00 27.00 2.05 2,155.00 601.00 China yuan 10.0085 0.0999 6.8241 0.1465 6-mos. forward 1.5854 0.6307 1.0810 0.9251 march on. Although the line between S&P BRIC 40 (Brazil, Russia, India, China) –0.87 34.61 said about Russo-Baltic relations in Aluminum ($/ton) LME 2,512.50 –10.50 –0.42 3,340.00 2,390.00 Hong Kong dollar 11.3830 0.0879 7.7613 0.1288 Turkey lira 1.8177 0.5501 1.2394 0.8069 Investing in “frontier markets” emerging markets and frontier mar- an interview, adding that Estonia is Tin ($/ton) LME 17,550.00 150.00 0.86 25,450 14,545 India rupee 67.363 0.0148 45.930 0.0218 U.K. pound 0.7920 1.2626 0.5400 1.8518 has continued to expand this year, kets can be blurry, frontier markets Source: Standard & Poor’s looking at “all our options” to make sure it keeps its independence. Copper ($/ton) LME 6,990.00 –100.00 –1.41 8,811.00 6,335.00 Indonesia rupiah 13691 0.0000730 9335 0.0001071 1-mo. forward 0.7928 1.2614 0.5405 1.8500 as investors look beyond once-ex- are generally categorized as less de- Japan yen 155.46 0.006432 106.00 0.009434 3-mos. forward 0.7950 1.2579 0.5420 1.8449 Frontier-market fund managers Lead ($/ton) LME 2,018.00 71.00 3.65 3,875.00 1,564.00 otic markets like China or Brazil for veloped, less easily traded and po- 1-mo. forward 154.93 0.006454 105.64 0.009466 6-mos. forward 0.7991 1.2514 0.5448 1.8354 The frontier-markets drive is a Another selling point: low corre- say the way to address this tension is Zinc ($/ton) LME 1,791.00 1.00 0.06 3,169.50 1,638.00 the next new thing in places like tentially much riskier than emerg- 3-mos. forward 154.10 0.006489 105.07 0.009518 MIDDLE EAST/AFRICA continuation of the emerging-mar- lation of movement of the stocks in to get a better grasp of the risk of par- Nickel ($/ton) LME 17,025 –25 –0.15 34,050 16,750 Vietnam, Ecuador or Eastern Euro- ing-markets countries. Brazil, Rus- 6-mos. forward 152.93 0.006539 104.27 0.009590 Bahrain dinar 0.5530 1.8083 0.3771 2.6522 these countries to those of devel- ticular countries within the region. Crude oil ($/bbl.) NYMEX 105.73 –0.88 –0.83 148.47 57.75 pean countries including Bulgaria, sia, India and China, known as the kets-investing story of the past de- Malaysia ringgit-c 5.0196 0.1992 3.4225 0.2922 Egypt pound-a 8.0134 0.1248 5.4638 0.1830 oped markets. That used to be the The belief is that, while there likely Heating oil ($/gal.) NYMEX 3.0270 0.0138 0.46 4.2500 1.9895 Estonia, Georgia, Lithuania, Roma- BRIC countries in the investment cade. While the Dow Jones Wilshire New Zealand dollar 2.1377 0.4678 1.4575 0.6861 Israel shekel 5.0335 0.1987 3.4320 0.2914 RBOB gasoline ($/gal.) NYMEX 2.5706 –0.0141 –0.55 3.5475 1.9605 world, fall into the more standard Developed Markets Index returned main appeal for the current lineup will be short-term volatility, the me- Pakistan rupee 114.340 0.0087 77.960 0.0128 Jordan dinar 1.0376 0.9638 0.7075 1.4135 nia, Slovenia, Slovakia and Ukraine. Natural gas ($/mmBtu) NYMEX 7.908 –0.236 –2.90 13.998 4.750 emerging-markets camp, while mar- an average of 11.1% a year over the of emerging markets, but they have dium- and long-term potential re- Philippines peso 67.921 0.0147 46.310 0.0216 Kuwait dinar 0.3904 2.5613 0.2662 3.7566 The Russian military move, the Brent crude ($/bbl.) ICE-EU 103.30 –0.47 –0.45 150.12 54.51 kets in countries like Kazakhstan past five years through Aug. 29, in- moved more in line with main- mains strong in much of the region. Singapore dollar 2.0870 0.4791 1.4230 0.7027 Lebanon pound 2202.17 0.0004541 1501.50 0.0006660 country’s first invasion abroad since Gas oil ($/ton) ICE-EU 979.25 15.25 1.58 1,357.50 739.00 and Kenya are frontier—lying sym- cluding reinvested dividends, the stream economies as they have “For a good portion of the fron- South Korea won 1692.95 0.0005907 1154.30 0.0008663 Saudi Arabia riyal 5.5058 0.1816 3.7540 0.2664 the Soviet Union disbanded in 1991, emerged. Sophisticated investors tier-markets universe, underlying Taiwan bolically, if not literally, beyond the Dow Jones Wilshire Emerging Mar- Source: Thomson Reuters; WSJ Market Data Group dollar 46.876 0.02133 31.961 0.03129 South Africa rand 11.8952 0.0841 8.1105 0.1233 has political and economic analysts constantly are in a search for re- fundamentals at both the company WSJ.com Thailand baht 49.815 0.02007 33.965 0.02944 frontier of the more standard emerg- kets Index rose 32.6%. United Arab dirham 5.3868 0.1856 3.6729 0.2723 wondering what impact Russia’s ac- ing markets. turns that can better diversify their and country level are still very much Follow the markets throughout the day, with updated stock quotes, news and commentary at SDR -f 0.9319 1.0730 0.6354 1.5738 tions will have on the trend. The con- S&P’s frontier-markets index, In the past year, big banks and portfolios. solid,” says James Upton, senior WSJ.com/Europe. Also, receive email alerts that summarize the day’s trading in Europe and Asia. a-floating rate b-commercial rate c-government rate c-commercial rate d-Russian Central Bank rate f-Special Drawing Rights from the Inter- sensus: The threat of a resurgent meanwhile, was up 28.8% a year in Wall Street firms including Morgan “The ultimate goal for many in- portfolio specialist and chief admin- To sign up, go to WSJ.com/Online Today national Monetary Fund ; based on exchange rates for U.S., British and Japanese currencies. Russia adds a sharply higher level of the past five years through August, Note: Based on trading among banks in amounts of $1 million and more, as quoted by Thomson Reuters. Stanley, HSBC Holdings PLC, Bar- vestors in 2008 is to find assets istrative officer for Morgan Stan- including reinvested dividends. political risk to the economic out- clays PLC and Deutsche Bank AG which are not closely linked to the ley’s Emerging Market Equity team. Frontier markets have enjoyed look in Eastern Europe and Western have launched funds focused on fron- fortunes of Wall Street,” Michael This team is managing Morgan Stan- Asia at a time when tighter global tier markets, riding a wave of inves- strong economic growth in recent Hartnett, Merrill Lynch’s chief glo- ley’s Frontier Emerging Markets Major stock market indexes Stock indexes from around the world, grouped by region. Shown in local-currency terms. credit and high inflation are making tor interest. Merrill Lynch & Co. and years, boosted by lower restrictions bal emerging-markets equity strate- Fund. But Mr. Upton, like Mr. Deseg- it more difficult for governments to consulting firm and index specialist on foreign investment, increased li- gist, explained in March when the lise of HSBC and Mr. Svedberg of 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. guide economic progress. But ana- MSCI Barra launched benchmark in- quidity in financial markets and im- firm launched its frontier-markets East Capital, stresses the need to an- lysts expect investment in many of dexes to track these markets, while proving corporate governance. In- index. From February 2000 through alyze the economic situation for 11 EUROPE DJ Stoxx 600 265.66 –1.65 –0.62% –27.1% –29.2% … Russia RTSI 1315.43 43.30 3.40% –42.6% –35.8% the countries to continue. Standard & Poor’s Corp., a pioneer vestment experts say there is contin- December 2007, measured against each country when investing rather 11 DJ Stoxx 50 2690.54 –19.57 –0.72 –27.0% –29.2% 10 Spain IBEX 35 11112.9 –63.6 –0.57% –26.8% –23.4% “The risk for policy missteps is in the field since 1996, introduced a ued room for outsized growth com- S&P 500 stocks, frontier-markets than viewing the outlook for all fron- 10 Euro Zone DJ Euro Stoxx 293.60 –1.83 –0.62 –29.2% –29.7% 15 Sweden OMX Stockholm 258.86 –1.38 –0.53 –26.4% –32.7% much, much higher,” says Christian tradable index last October. pared with developed countries. stocks moved in the same monthly tier countries as similar. 10 DJ Euro Stoxx 50 3119.83 –20.00 –0.64 –29.1% –28.5% 13 Switzerland SMI 6780.34 –25.19 –0.37 –20.1% –23.5% In Eastern Europe, this means de- direction 32% of the time, compared 9 Austria ATX 3123.83 13.93 0.45% –30.8% –31.1% … Turkey ISE National 100 35177.11 –277.06 –0.78 –36.7% –35.2% with a 73% correlation for emerging ciding which countries may bear the 9 Belgium Bel-20 2866.17 –26.76 –0.93 –30.6% –33.1% 10 U.K. FTSE 100 5095.57 –40.55 –0.79 –21.1% –20.8% markets and 96% correlation for brunt of increased Russian assertive- other developed markets, according ness and which countries stand on 12 Czech Republic PX 1283.1 5.4 0.42 –29.3% –29.7% 12 ASIA-PACIFIC DJ Asia-Pacific 120.12 0.15 0.13 –24.0% –25.2% Follow the leader in to Merrill. sound footing for further economic 13 Denmark OMX Copenhagen 358.77 –0.22 –0.06 –20.1% –24.1% … Australia SPX/ASX 200 4981.9 58.4 1.19 –21.4% –23.1% For Central and Eastern Europe development. Political analysts say 10 Finland OMX Helsinki 7326.39 –72.02 –0.97 –36.8% –40.0% … China CBN 600 17015.02 r138.29 0.82 –58.9% –58.8% specifically, economists highlight that along with Georgia, Ukraine 10 France CAC-40 4114.54 –25.28 –0.61 –26.7% –27.7% 11 Hong Kong Hang Seng 18961.99 89.14 0.47 –31.8% –28.3% Central and eastern europe. additional development momen- looks particularly vulnerable to Rus- 12 Germany DAX 6052.87 –15.66 –0.26 –25.0% –22.4% 15 India Sensex 13692.52 122.21 0.90 –32.5% –19.1% tum for economies that have close sia aggression, as it is a former So- … Hungary BUX 18579.18 141.86 0.77 –29.2% –33.3% … Japan Nikkei Stock Average 12115.03 24.44 0.20 –20.9% –26.3% viet state, borders Russia, has a proximity to richer neighbors. A 3 Ireland ISEQ 3774.93 35.48 0.95 –45.6% –50.4% … Singapore Straits Times 2477.60 1.09 0.04 –28.5% –31.0% large native-Russian population, country like Slovenia, for example, 8 Italy S&P/MIB 26929 –138 –0.51 –30.2% –32.8% 11 South Korea Kospi 1495.98 14.61 0.99 –21.1% –22.1% ■ The largest banking network in Central and Eastern Europe ■ Over 14 million lies close to Austria and Italy. has strategically important ports ■ and is pondering NATO membership 6 Netherlands AEX 360.62 –7.02 –1.91 –30.1% –33.1% 13 AMERICAS DJ Americas 309.53 0.54 0.17 –17.9% –20.1% customers serviced through more than 3,000 business outlets The largest Western “Your neighbors count,” making banking group in the CIS region ■ An extensive range of financial services, including against the Kremlin’s wishes. 8 Norway All-Shares 410.19 –6.21 –1.49 –28.0% –28.1% … Brazil Bovespa 50019.58 426.41 0.86 –21.7% –16.0% foreign direct investments and investment banking, leasing, asset management, building society and pension The gold standard of investment 17 Poland WIG 37486.11 80.51 0.22 –32.6% –38.8% 12 Mexico IPC 25128.12 158.95 0.64 –14.9% –16.9% trade easier, says Marcus Svedberg, fund services ■ Awards in recent years include Best Bank in Central and Eastern in emerging or frontier Europe is chief economist at Sweden-based 11 Portugal PSI 20 8178.48 –12.01 –0.15 –37.2% –30.7% EuropefromEuromoney,GlobalFinance,TheBankerandEmergingMarkets. membership in NATO, the EU and asset-management firm East Capi- *P/E ratios use trailing 12-months, as-reported earnings the euro zone, the common-cur- Reuters Group PLC is the primary data provider for several statistical tables in The Wall Street Journal, including foreign stock quotations, futures and futures tal Holding AB. East Capital man- rency area now numbering 15 coun- 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. ages several funds in emerging and tries. For now, Slovenia is the only frontier Europe that are sold glo- country that used to be part of the bally to institutional and individual Dow Jones and Dow Jones Stoxx Indexes MSCI indexes Soviet Union that is in all three, investors. Developed and emerging-market regional and country indexes while Slovakia, a NATO and EU mem- Price-to- Price-to- Bulgaria, Estonia, Latvia, Lithua- ber, is set to adopt the euro Jan. 1. Dividendearnings PERFORMANCE (euros) PERFORMANCE (U.S. dollars) Dividendearnings PERFORMANCE (euros) PERFORMANCE (U.S. dollars) from MSCI Barra as of September 23, 2008 nia, Romania, Slovenia and Slovakia 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. “EU versus non-EU members is a 2.81% 12 World -a % % 234.94 –0.07%–23.1% 4.42% 16 U.S. Select Dividend -b % % 766.64 –0.20%–15.8% Price-to- LOCAL-CURRENCY all have joined the European Union Dividend earnings PERFORMANCE useful way of categorizing coun- 2.82% 12 Stoxx Global 1800 210.10 0.24% –25.7% 230.07 –0.18%–22.9% 4.07% 15 Infrastructure 1479.70 0.51% –20.5% 2070.42 0.17%–17.4% yield ratio Morgan Stanley Index Last Daily YTD 52-wk. and the North Atlantic Treaty Orga- tries in the region, because the 3.43% 11 Stoxx 600 265.70 –0.62% –29.2% 290.96 –1.04%–26.4% 1.90% 11 Luxury 819.60 –0.60% –31.4% 1019.75 –0.94%–28.7% nization. This means they are part 2.90% 14 ALL COUNTRY (AC) WORLD* 311.50 –1.37%–22.8% –20.4% whole accession process to become 3.52% 11 Stoxx Large 200 286.40 –0.62% –29.0% 312.01 –1.03%–26.3% 1.60% 10 BRIC 50 360.00 1.70% –28.1% 503.36 1.27%–25.3% of a free-trade bloc with a popula- 2.90% 14 World (Developed Markets) 1,249.66 –1.20%–21.3% –20.0% a member is so important as a re- 2.87% 13 Stoxx Mid 200 237.00 –0.70% –29.4% 258.10 –1.12%–26.7% 8.88% 5 Africa 50 845.40 –0.81% –18.3% 787.48 –1.15%–15.1% tion of about 500 million, which 2.60% 15 World ex-EMU 145.10 –1.23%–19.8% –19.4% form and economic driver,” says 3.17% 11 Stoxx Small 200 149.30 –0.44% –31.1% 162.51 –0.86%–28.5% 6.60% 9 GCC 40 822.50 –2.06% –11.7% 768.77 –2.06% –7.9% aids economic development, and 2.70% 14 World ex-UK 1,241.71 –1.18%–20.8% –19.3% East Capital’s Mr. Svedberg. “But 3.41% 10 Euro Stoxx 293.60 –0.62% –29.7% 321.56 –1.04%–27.0% 3.42% 10 Sustainability 860.40 –0.45% –26.9% 1070.45 –0.39%–23.8% they are part of a powerful military 3.70% 11 EAFE 1,698.64 –0.89%–24.6% –22.3% there certainly are interesting in- 3.51% 10 Euro Stoxx Large 200 314.70 –0.63% –30.1% 342.50 –1.05%–27.4% 2.29% 12 Islamic Market -a % % 1951.88 0.06%–19.0% alliance, helping stability. 2.70% 12 Emerging Markets (EM) 830.32 –2.83%–33.3% –23.6% vestment opportunities outside the 2.88% 13 Euro Stoxx Mid 200 267.90 –0.65% –27.2% 291.43 –1.07%–24.4% 2.62% 11 Islamic Market 100 1673.60 –0.15% –22.9% 2110.59 –0.09%–19.5% 4.20% 10 EUROPE 93.33 –1.79%–26.8% –28.9% However, frontier Europe is near EU orbit, too.” 3.02% 12 Euro Stoxx Small 200 163.20 –0.40% –29.4% 177.50 –0.82%–26.7% 6.18% 7 Islamic Turkey -c 2308.90 0.67% –23.6% % % Russia, and Russia’s military action 4.30% 10 EMU 200.37 –1.06%–28.4% –22.9% 7.99% 7 Stoxx Select Dividend 30 1718.40 –0.14% –44.8% 2156.54 –0.56%–42.6% 2.16% 17 Wilshire 5000 % % 12180.67 0.06%–20.6% 4.00% 11 Europe ex-UK 102.02 –1.69%–26.8% –27.7% in Georgia has fueled worry that Rus- 5.40% 7 Euro Stoxx Select Div 30 2007.50 0.03% –39.2% 2529.11 –0.39%–36.8% % DJ-AIG Commodity 168.40 0.43% –2.6% 179.36 0.00% 1.1% sia is intent on a more assertive for- Personal Technology 5.70% 8 Europe Value 105.93 –1.94%–30.1% –34.0% eign policy, especially concerning *Fundamentals are based on data in U.S. dollar. Footnotes: a-in US dollar. b-dividends reinvested. c-in local currency. Note: All data as of 2 p.m. ET. Source: Dow Jones Indexes 2.70% 14 Europe Growth 79.99 –1.64%–23.4% –23.6% former states in the Soviet Union. Help from afar 3.30% 12 Europe Small Cap 155.22 –2.49%–27.9% –36.3% Nearly all the frontier and emerging Cross rates U.S.-dollar and euro foreign-exchange rates in global trading 2.40% 9 EM Europe 291.83 –3.62%–39.3% –30.7% markets in Eastern Europe and Walter S. Mossberg 4.50% 10 UK 1,524.24 –1.98%–20.6% –19.3% Western Asia that have investors ex- connects with techies USD GBP CHF SEK RUB NOK JPY ILS EUR DKK CDN AUD 3.60% 12 Nordic Countries 144.86 –2.29%–29.7% –32.6% cited are former Soviet states or sat- Australia 1.1937 2.2104 1.0971 0.1812 0.0478 0.2125 0.0113 0.3478 1.7507 0.2346 1.1536 ... 1.60% 8 Russia 843.35 –3.54%–43.9% –29.4% ellite states. This includes Armenia, via CrossLoop > Page 32 Canada 1.0348 1.9162 0.9510 0.1570 0.0414 0.1842 0.0098 0.3015 1.5176 0.2034 ... 0.8669 3.30% 14 South Africa 620.61 –4.72%–13.0% –11.2% Azerbaijan, Belarus, Georgia, Ka- Denmark 5.0871 9.4203 4.6754 0.7721 0.2035 0.9054 0.0480 1.4823 7.4610 ... 4.9163 4.2617 3.50% 13 AC ASIA PACIFIC EX-JAPAN 352.30 –2.22%–33.5% –25.7% zakhstan and Ukraine. Of those Euro 0.6818 1.2626 0.6266 0.1035 0.0273 0.1214 0.0064 0.1987 ... 0.1340 0.6589 0.5712 1.90% 15 Japan 737.14 0.00%–21.6% –27.8% Israel 3.4320 6.3554 3.1543 0.5209 0.1373 0.6108 0.0324 ... 5.0335 0.6746 3.3167 2.8752 countries, Georgia, Kazakhstan and 2.30% 15 China 48.56 –5.29%–43.1% –34.7% Japan 106.0000 196.2908 97.4220 16.0874 4.2408 18.8659 ... 30.8858 155.4649 20.8370 102.4402 88.8015 1.10% 17 India 538.38 –2.97%–37.0% –12.7% Ukraine are represented in S&P’s Norway 5.6186 10.4045 5.1639 0.8527 0.2248 ... 0.0530 1.6371 8.2405 1.1045 5.4299 4.7070 2.20% 10 Korea 411.03 1.30%–20.5% –18.7% frontier-markets indexes. Russia 24.9952 46.2861 22.9725 3.7935 ... 4.4487 0.2358 7.2830 36.6592 4.9134 24.1558 20.9397 5.30% 12 Taiwan 242.74 1.05%–27.3% –30.1% “As Russia exerts its military Sweden 6.5890 12.2015 6.0558 ... 0.2636 1.1727 0.0622 1.9199 9.6638 1.2952 6.3677 5.5199 force in Georgia, the Kremlin sends Switzerland 1.0881 2.0149 ... 0.1651 0.0435 0.1937 0.0103 0.3170 1.5958 0.2139 1.0515 0.9115 2.10% 18 US BROAD MARKET 1,312.29 –1.53%–17.7% –18.1% a thinly veiled message to neighbor- U.K. 0.5400 ... 0.4963 0.0820 0.0216 0.0961 0.0051 0.1573 0.7920 0.1062 0.5219 0.4524 1.50% 35 US Small Cap 1,790.43 –1.40% –9.8% –12.9% U.S. ... 1.8518 0.9191 0.1518 0.0400 0.1780 0.0094 0.2914 1.4666 0.1966 0.9664 0.8378 Contact: [email protected] Phone: +43-1-71 707-3537 www.ri.co.at ing territories, indicating that 2.50% 12 EM LATIN AMERICA 3,346.66 –4.10%–23.9% –9.1% Prime Minister Vladimir Putin and Source: Thomson Reuters via WSJ Market Data Group *Twenty-three developed and 26 emerging markets Source: MSCI Barra 28 THURSDAY, SEPTEMBER 25, 2008 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. THURSDAY, SEPTEMBER 25, 2008 9 Advertisement [ INTERNATIONAL INVESTMENT FUNDS www.WSJ.com ] Advertisement CORPORATE NEWS GLOBAL Continued from page 26 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 — BUSINESS FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR Euro Small Cap B EU EQ IRL 09/23 EUR 1333.48 –28.4 –34.8 –15.2 Alpha Short Bd SEK -C- NO MM LUX 09/24 SEK 21.04 2.2 3.2 2.9 Eurozone Agg Eq A EU EQ IRL 09/23 EUR 677.38 –29.3 –32.3 NS Alpha Short Bd SEK -D- NO MM LUX 09/24 SEK 8.75 2.2 3.1 2.9 PF (LUX)-CHF Liq-Pca CH MM LUX 09/23 CHF 123.80 1.5 2.2 1.9 Eurozone Agg Eq B EU EQ IRL 09/23 EUR 966.26 –28.9 –31.9 –10.5 Bond Fd EUR -C- EU BD LUX 09/24 EUR 1.23 1.2 2.1 0.4 BRIEFS PF (LUX)-CHF Liq-Pdi CH MM LUX 09/23 CHF 95.56 1.5 2.1 1.9 Glbl Bd (EuroHdg) A GL BD IRL 09/23 EUR 1247.21 –3.6 –3.0 –1.5 PF (LUX)-Cnt Eu Eq-I EU EQ LUX 09/23 EUR 160.90 –27.7 –30.3 –8.7 Bond Fd EUR -D- EU BD LUX 09/24 EUR 0.49 1.2 2.2 0.5 Glbl Bd (EuroHdg) B GL BD IRL 09/23 EUR 1312.58 –3.1 –2.4 –0.9 PF (LUX)-Digital Comm-Pca OT EQ LUX 09/23 USD 96.16 –29.7 –26.1 –1.2 Bond Fd SEK -C- NO BD LUX 09/24 SEK 38.63 2.3 3.1 1.8 Glbl Bd A EU BD IRL 09/23 EUR 968.82 –3.9 –5.5 –5.3 PF (LUX)-East Eu-Pca EU EQ LUX 09/23 EUR 289.56 –43.7 –37.9 –9.1 Bond Fd SEK -D- NO BD LUX 09/24 SEK 11.59 1.1 1.9 1.2 Glbl Bd B EU BD IRL 09/23 EUR 1023.71 –3.5 –4.9 –4.7 n THE NATIONAL INVESTOR Daimler in talks on Chrysler stake Air France-KLM SA PF (LUX)-Emg Mkts LC-Pca GL EQ LUX 09/24 USD 140.02 –39.4 –34.7 –0.2 Corp. Bond Fd EUR -C- EU BD LUX 09/24 EUR 1.09 –6.9 –7.0 –4.0 Glbl Real Estate A OT EQ IRL 09/23 USD 1043.87 –17.9 –24.3 –7.4 Corp. Bond Fd EUR -D- EU BD LUX 09/23 EUR 0.86 –6.6 –6.6 –4.2 PO Box 47435, Abu Dhabi, UAE Web:www.tni.ae PF (LUX)-Emg Mkts-Pca GL EQ LUX 09/24 USD 459.88 –37.4 –32.7 –0.4 Glbl Real Estate B OT EQ IRL 09/23 USD 1068.09 –17.5 –23.9 –6.8 Email: [email protected] Tel:+971 2 619 2300 PF (LUX)-Eu Indx-Pca EU EQ LUX 09/23 EUR 102.97 –24.6 –27.0 –8.2 Corp. Bond Fd SEK -C- NO BD LUX 09/24 SEK 11.37 –5.8 –5.3 –2.9 reported in German monthly Man- stake of 19.9% in Chrysler was “lim- cause of a deep decline in sales. Glbl Real Estate EH-A OT EQ IRL 09/23 EUR 970.06 –17.3 –24.6 –9.8 MENA Real Estate Acc Fund OT EQ ARE 08/29 USD 12.37 –16.3 NS NS Spinetta will hand over PF (LUX)-EUR Bds-Pca EU BD LUX 09/23 EUR 359.50 –0.5 –0.4 –1.5 Corp. Bond Fd SEK -D- NO BD LUX 09/24 SEK 8.93 –5.6 –5.1 –2.8 German auto maker Glbl Real Estate SH-B OT EQ IRL 09/23 GBP 92.10 –16.1 –23.1 –7.9 UAE Blue Chip Fund Acc AS EQ ARE 09/11 AED 9.14 –21.6 7.8 3.0 ager Magazin. ited”. “If the worst comes to the There has been speculation that Danish Mortgage Bond Fd EURNO -ID- BD LUX 09/24 EUR 97.31 NS NS NS PF (LUX)-EUR Bds-Pdi EU BD LUX 09/23 EUR 282.32 –0.5 –0.4 –1.5 Glbl Strategic Yield A EU BD IRL 09/23 EUR 1418.10 –5.1 –5.5 –0.4 “Cerberus confirms that it has ap- worst, the book value will be zero,” Cerberus would sell off parts of the his CEO post in January PF (LUX)-EUR Cp Bd-Pca EU BD LUX 09/23 EUR 125.20 –4.5 –4.4 –3.0 Glbl Strategic Yield B EU BD IRL 09/23 EUR 1505.98 –4.7 –4.9 0.2 Danish Mortgage Bond Fd EURNO -RC- BD LUX 09/24 EUR 97.16 NS NS NS PF (LUX)-EUR Cp Bd-Pdi EU BD LUX 09/23 EUR 91.27 –4.5 –4.4 –3.0 Japan Equity A JP EQ IRL 09/23 JPY 14021.00 –24.6 –29.7 –15.3 Danish Mortgage Bond Fd SEKNO -ID- BD LUX 09/24 SEK 101.45 NS NS NS is seeking to shed proached Daimler about the possible he said at the time. company, but Chrysler President Jim The head of Air France-KLM SA, PF (LUX)-EUR HiYld-Pca EU BD LUX 09/23 EUR 128.09 –10.6 –11.9 –5.6 Japan Equity B JP EQ IRL 09/23 JPY 14831.00 –24.3 –29.3 –14.8 Danish Mortgage Bond Fd SEKNO -RC- BD LUX 09/23 SEK 933.01 NS NS NS redemption of its 19.9% stake in In July, Daimler said its remain- Press said earlier this month that PF (LUX)-EUR HiYld-Pdi EU BD LUX 09/23 EUR 82.84 –10.6 –11.9 –5.6 Multi St Cash Plus EH-A GL EQ IRL 09/23 EUR 1002.36 –0.9 1.5 NS Flexible Bond Fd -C- NO BD LUX 09/24 SEK 20.19 2.3 3.1 2.6 Jean-Cyril Spinetta, is to hand over PF (LUX)-EUR Liq-Pca EU MM LUX 09/23 EUR 133.54 2.8 3.9 3.5 PacBasn (Ex-Jap) Eq A AS EQ IRL 09/23 USD 1819.58 –31.2 –28.7 1.3 Flexible Bond Fd -D- NO BD LUX 09/24 SEK 11.43 2.3 3.1 2.6 last 19.9% holding Chrysler,” said a Cerberus spokes- ing stake was worth Œ171 million Cerberus is invested for the long his top management post to his PF (LUX)-EUR Liq-Pdi EU MM LUX 09/23 EUR 99.76 2.8 3.9 3.5 PacBasn (Ex-Jap) Eq B AS EQ IRL 09/23 USD 1926.79 –31.0 –28.3 1.9 PF (LUX)-Europ Eq-Pca EU EQ LUX 09/23 EUR 427.61 –29.9 –33.5 –11.4 n SEB Global Hedge man. “We are currently in discus- ($252 million) on its books after it term. No. 2 in January, according to a per- Pan European Eq A EU EQ IRL 09/23 EUR 987.33 –27.4 –30.4 –11.3 n TRIGON CAPITAL PF (LUX)-EuSust Eq-Pca EU EQ LUX 09/23 EUR 136.90 –25.7 –30.6 –12.2 Pan European Eq B EU EQ IRL 09/23 EUR 1045.83 –27.0 –29.9 –10.8 Global Hedge I SEK -C- OT OT LUX 09/24 SEK 93.22 –12.2 –12.5 –4.9 By Shara Tibken sions. In the event of a successful faced a Œ373 million write-down on He added that Cerberus has been Phone +372 667 9208 Fax +372 667 9221 E-mail [email protected] Website www.trigoncapital.com son familiar with the company’s PF (LUX)-Gl Em Dbt-Pca GL BD LUX 09/23 USD 195.93 –2.4 0.5 4.0 US Equity A US EQ IRL 09/23 USD 924.13 –20.3 –21.5 –2.7 Global Hedge I SEK -D- OT OT LUX 09/24 SEK 85.19 –14.8 –15.1 –6.3 Central and Eastern EuropeanEE EUR EQ EST 09/24 EEK 159.13 –40.6 –46.6 –18.8 And Christoph Rauwald PF (LUX)-Gl Em Dbt-Pdi GL BD LUX 09/23 USD 139.70 –2.4 0.5 4.0 US Equity B US EQ IRL 09/23 USD 982.03 –20.0 –21.0 –2.1 transaction, all existing industrial re- the stake value. a model parent company, and its own- plans. Mr. Spinetta will remain chair- n New Europe Small Cap EUR EE EQ EST 09/24 EEK 84.88 –39.1 –44.7 –16.8 PF (LUX)-Gl Eq Sel-Pca GL EQ LUX 09/23 USD 18.21 –25.1 –25.8 –7.6 US Small Cap A US EQ IRL 09/23 USD 1450.75 –15.5 –18.7 –1.3 SEB Sicav 1 lationships between Daimler and The write-down reflected the de- ership has allowed the company to man of both Air France and its hold- PF (LUX)-Gr China-Pca AS EQ LUX 09/24 USD 275.51 –35.6 –33.4 7.7 US Small Cap B US EQ IRL 09/23 USD 1542.46 –15.2 –18.2 –0.7 Choice Emerging Mkts Fd GL EQ LUX 09/24 USD 2.20 –34.1 –28.3 5.8 Second Wave EUR EE EQ EST 09/24 EEK 172.01 –37.4 –40.4 –5.3 PF (LUX)-Indian Eq-Pca EA EQ LUX 09/24 USD 287.16 –45.8 –32.2 3.3 German auto maker Daimler AG Chrysler would continue.” teriorating condition of Chrysler’s quickly implement changes. ing company, Air France-KLM. But PF (LUX)-Jap Index-Pca JP EQ LUX 09/24 JPY 11219.37 –21.0 –24.6 –12.0 n SEB ASSET MANAGEMENT S.A. n SEB Sicav 2 confirmed it is in talks to sell its re- Daimler and Chrysler co-operate, business mainly in the first quarter. Chrysler has been scrambling to on Jan. 1 he will relinquish his post PF (LUX)-Jp Eq Sel-Ica JP EQ LUX 09/22 JPY 10420.81 –22.2 –28.9 –16.5 www.seb.se Choice Asia SmCap exJpn AS EQ LUX 09/24 SEK 20.40 –38.9 –43.1 –12.2 PF (LUX)-Jp Eq Sel-Pca JP EQ LUX 09/22 JPY 10189.35 –22.6 –29.3 –17.0 SEB Fund 1 Europe Chance/Risk Fd EU EQ LUX 09/24 EUR 1119.23 –34.2 –36.8 –14.4 maining 19.9% stake in Chrysler LLC for example, on diesel engines and Because Daimler books the Chrysler respond to a dramatic customer shift as chief executive officer of Air PF (LUX)-JpEq130/30-Pca JP EQ LUX 09/24 JPY 5479.50 –20.5 –24.3 –16.9 Choice Global Value -C- GL EQ LUX 09/24 SEK 80.93 –30.6 –34.6 –14.4 to Cerberus Capital Management away from pickup trucks and sport- France to Pierre-Henri Gourgeon, PF (LUX)-Pacif Idx-Pca AS EQ LUX 09/24 USD 236.68 –25.8 –24.5 7.3 Choice Japan Fd JP EQ LUX 09/24 JPY 60.73 –23.2 –27.4 –16.8 LP. utility vehicles, which make up the PF (LUX)-Piclife-Pca CH BA LUX 09/23 CHF 763.56 –10.1 –11.9 –4.0 Choice Jpn Chance/Risk JP EQ LUX 09/24 JPY 64.70 –27.7 –30.2 –15.0 n YUKI MANAGEMENT & RESEARCH CO., LTD. who is now deputy CEO of Air Choice NthAmChance/Risk US EQ LUX 09/24 USD 4.22 –19.3 –18.4 –3.4 PF (LUX)-PremBrnds-Pca OT EQ LUX 09/23 EUR 58.64 –23.7 –28.5 –9.6 Tel: +81-3-5299-3277 www.yukijapan.co.jp Cerberus, the private-equity gi- In July, Daimler said its remaining stake majority of the company’s product France-KLM and chief operating of- PF (LUX)-Rus Eq-Pca EE EQ LUX 09/18 USD 48.89 NS NS NS Europe 2 Fd EU EQ LUX 09/24 EUR 0.99 –31.9 –34.7 –13.0 YMR-N Growth Fund JP EQ IRL 09/24 JPY 11300.00 –32.6 –39.8 –21.9 PF (LUX)-Security-Pca GL EQ LUX 09/23 USD 88.25 –20.9 –22.9 NS Europe 3 Fd EU EQ LUX 09/24 GBP 3.45 –26.7 –25.6 –5.3 ant, acquired its 80.1% stake a year portfolio. ficer of Air France, this person said. YMR-N Japan Fund JP EQ IRL 09/24 JPY 12752.00 –26.7 –35.0 –16.0 PF (LUX)-Sm Cap Eu-Pca EU EQ LUX 09/23 EUR 459.42 –25.6 –29.9 –7.5 Global Chance/Risk Fd GL EQ LUX 09/23 EUR 0.63 –20.3 –25.0 –10.1 n SG ASSET MANAGEMENT HTTP://WWW.SGAM.COM YMR-N Low Price Fund JP EQ IRL 09/24 JPY 16630.00 –27.1 –34.2 –18.4 ago in a deal that undid the nine-year- was worth Œ171 million ($252 million) on its Chrysler is also stung, more so Mr. Spinetta has been the head of PF (LUX)-US Eq-Ica US EQ LUX 09/23 USD 109.08 –15.3 –15.5 –0.6 Global Fd GL EQ LUX 09/24 USD 2.32 –21.4 –23.0 –3.9 Eq. China A AS EQ LUX 09/23 USD 17.47 –47.2 –47.1 5.9 YMR-N Small Cap Fund JP EQ IRL 09/24 JPY 7660.00 –38.2 –45.5 –28.0 PF (LUX)-USA Index-Pca US EQ LUX 09/23 USD 94.83 –18.2 –21.1 –3.7 Intl Mixed Fd -C- NO BA LUX 09/24 USD 28.35 –14.9 –14.9 –0.6 old tie-up of Daimler and Chrysler than its main competitors, as a result Air France, which acquired KLM Eq. Pacific A AS EQ LUX 09/23 USD 8.94 –35.5 –31.8 4.4 Yuki Mizuho Gen Jpn III JP EQ IRL 09/24 JPY 6312.00 –32.1 –37.5 NS PF (LUX)-USD Bds-Pca US BD LUX 09/23 USD 486.23 3.0 6.8 4.9 Intl Mixed Fd -D- NO BA LUX 09/24 USD 20.01 –14.9 –14.9 0.8 Yuki Mizuho Jpn Dyn Gro AS EQ IRL 09/24 JPY 6720.00 –30.8 –38.5 –21.9 that failed to reap the anticipated books after it faced a Œ373 million of its relatively high reliance on the Royal Dutch Airlines in 2004, for 11 PF (LUX)-USD Bds-Pdi US BD LUX 09/23 USD 367.36 3.0 6.8 4.9 Wireless Fd OT EQ LUX 09/24 EUR 0.13 –32.1 –34.1 –9.3 n SGAM Fund Yuki Mizuho Jpn Exc 100 JP EQ IRL 09/24 JPY 8890.00 –29.0 –35.1 –19.8 PF (LUX)-USD Liq-Pca US MM LUX 09/23 USD 129.59 2.0 3.2 4.0 Bonds CHF A CH BD LUX 09/23 CHF 26.69 2.3 2.1 –0.3 benefits. U.S. market, which accounts for 90% years. Mr. Spinetta turns 65 years n SEB Fund 2 Yuki Mizuho Jpn Gen JP EQ IRL 09/24 JPY 10833.00 –29.5 –38.6 –18.3 PF (LUX)-USD Liq-Pdi US MM LUX 09/23 USD 87.36 2.0 3.2 4.0 Bonds ConvEurope A EU BD LUX 09/23 EUR 30.81 6.0 8.3 9.6 Choice Asia ex. Japan Fd AS EQ LUX 09/24 USD 5.86 –35.6 –35.6 –3.1 Yuki Mizuho Jpn Gro JP EQ IRL 09/24 JPY 7969.00 –35.4 –42.1 –23.4 Daimler is now centered around write-down on the stake value. of its sales. old next month. PF (LUX)-Water-Pca GL EQ LUX 09/23 EUR 128.02 –18.0 –17.7 –3.2 Currency Alpha EUR -IC- OT OT LUX 09/24 EUR 10.65 4.3 2.5 NS Bonds Eur Corp A EU BD LUX 09/23 EUR 20.60 –6.1 –5.9 –3.5 Yuki Mizuho Jpn Inc JP EQ IRL 09/24 JPY 10509.00 –19.8 –30.5 –12.1 PF (LUX)-WldGovBds-Pca GL BD LUX 09/23 USD 151.72 3.1 7.5 5.7 the highly cash-generative Mercedes- The company posted a loss of $1.6 Currency Alpha EUR -RC- OT OT LUX 09/24 EUR 10.61 3.9 1.9 NS Bonds Eur Hi Yld A EU BD LUX 09/23 EUR 18.49 –12.8 –13.6 –6.2 Yuki Mizuho Jpn Lg Cap AS EQ IRL 09/24 JPY 6755.00 –28.4 –34.5 NS PF (LUX)-WldGovBds-Pdi GL BD LUX 09/23 USD 128.39 3.1 7.5 5.7 Currency Alpha SEK -ID- OT OT LUX 09/24 SEK 103.30 NS NS NS Bonds EURO A EU BD LUX 09/23 EUR 37.00 0.2 1.2 –0.1 Yuki Mizuho Jpn LowP JP EQ IRL 09/24 JPY 13601.00 –24.9 –27.4 –16.4 Benz Cars unit and the Daimler billion in 2007, and Chrysler told its PTF (LUX)-MidEast&NorAfr-PcaGL EQ LUX 09/23 USD 72.63 NS NS NS AstraZeneca PLC Currency Alpha SEK -RC- OT OT LUX 09/23 SEK 101.73 NS NS NS Bonds Europe A EU BD LUX 09/23 EUR 35.84 0.2 0.8 –0.2 Yuki Mizuho Jpn PGth JP EQ IRL 09/24 JPY 10607.00 –35.4 –40.0 –21.2 Trucks division, the world’s largest hybrid technology. Chrysler didn’t stake in an “at equity” manner, re- dealers at a meeting Tuesday that its n POLAR CAPITAL PARTNERS LIMITED Generation Fd 80 OT OT LUX 09/24 SEK 7.69 –18.6 NS NS Bonds US MtgBkSec A US BD LUX 09/23 USD 22.17 –12.1 –10.0 –3.4 Yuki Mizuho Jpn SmCp JP EQ IRL 09/24 JPY 7589.00 –40.1 –45.7 –26.8 Bonds US OppsCoreplus A US BD LUX 09/23 USD 31.50 0.1 3.2 3.5 truck maker by sales. immediately return a call seeking sults are published with a three- vehicle sales are down 24% in the International Fund Managers (Ireland) Limited PH - 353 1 670 660 Fax - 353 1 670Nordic 1185 Focus EUR NO EQ LUX 09/24 EUR 75.36 –23.8 NS NS Yuki Mizuho Jpn Val Sel AS EQ IRL 09/24 JPY 6930.00 –26.3 –33.1 –17.2 AstraZeneca PLC said a U.S. Nordic Focus NOK NO EQ LUX 09/23 NOK 77.59 NS NS NS Bonds World A GL BD LUX 09/23 USD 38.11 2.5 6.9 6.8 Asia Ex-Japan Fund USD AS EQ IRL 05/20 USD 1.12 –93.7 –93.8 –72.2 Yuki Mizuho Jpn YoungCo AS EQ IRL 09/24 JPY 3358.00 –41.2 –44.5 –39.1 Steep losses at Chrysler had comment. month delay. first eight months of 2008, The Wall court denied a summary-judgment Nordic Focus SEK NO EQ LUX 09/23 SEK 77.82 –21.8 NS NS Eq. ConcentratedEuropeA EU EQ LUX 09/23 EUR 28.54 –29.3 –30.7 –13.1 Global Technology OT EQ IRL 09/23 USD 11.04 –23.7 –23.3 –6.4 Eq. Eastern Europe A EU EQ LUX 09/23 EUR 26.01 –41.0 –37.4 –8.7 n Yuki 77 Series sparked sharp criticism among Daim- A spokesman for Daimler de- Chrysler—like Ford Motor Co. Street Journal reported. Although it motion by generic-drug maker Japan Fund USD JP EQ IRL 09/24 USD 14.46 –14.1 –16.8 –9.2 n SEB Fund 3 Eq. Equities Global Energy OT EQ LUX 09/23 USD 21.41 –15.0 –8.1 14.7 Yuki 77 Excellent JP EQ IRL 09/24 JPY 6216.00 –29.7 –35.1 –18.3 ler investors for several years. In Au- clined to comment on who initiated and General Motors Corp.—has has slashed costs to narrow its Teva Pharmaceutical Industries n Hemisphere Management (Ireland) Limited Choice Asia Eq. ex Japan Fd AS EQ LUX 09/24 USD 1.05 –35.5 –35.8 –1.8 Eq. Euroland A EU EQ LUX 09/23 EUR 12.04 –30.4 –31.6 –11.9 Yuki 77 General JP EQ IRL 09/24 JPY 8214.00 –28.5 –36.2 –17.7 Choice North America Eq. Fd US EQ LUX 09/24 USD 1.89 –22.1 –23.0 –6.3 gust 2007, the Stuttgart-based auto the sale talks. Furthermore Daimler struggled in recent years amid losses, the company is still losing Columbus USD A GL EQ CYM 08/29 USD 91.52 –9.3 –6.8 NS Eq. Euroland MidCapA EU EQ LUX 09/23 EUR 20.95 –27.7 –32.6 –12.7 Yuki 77 Growth JP EQ IRL 09/24 JPY 8341.00 –32.0 –39.4 –22.0 Ltd. of Israel that could have paved Ethical Global Fd GL EQ LUX 09/24 USD 0.87 –21.2 –23.7 –5.0 Discovery USD A OT OT CYM 08/29 USD 115.27 3.3 15.0 9.3 Eq. EurolandCyclclsA EU EQ LUX 09/23 EUR 18.80 –25.8 –25.4 –2.5 Ethical Sweden Fd NO EQ LUX 09/24 SEK 35.49 –20.3 –26.2 –6.0 n Yuki Chugoku Series maker finally sold an 80.1% stake to declined to comment on the status of slumping U.S. sales and a shift in con- money, those officials said. the way for low-cost copies of As- Elbrus USD A GL EQ CYM 08/29 USD 12.17 –25.7 –10.6 12.4 Eq. EurolandFinancialA OT EQ LUX 09/23 EUR 13.11 –29.6 –32.4 –18.2 Europe Fd EU EQ LUX 09/23 USD 2.45 –31.0 –30.9 2.2 Yuki Chugoku Jpn Gen JP EQ IRL 09/24 JPY 8505.00 –26.9 –36.5 –19.4 Cerberus in a deal that allowed Daim- an existing technology alliance be- sumer demand to smaller and more Chrysler told its dealers it has Europn Conviction USD B EU EQ CYM 08/29 USD 118.01 3.3 9.2 7.2 Eq. Glbl Emg Cty A GL EQ LUX 09/22 USD 8.86 –34.4 –29.4 1.8 traZeneca’s asthma treatment Pul- Global Equity Fd GL EQ LUX 09/24 USD 1.50 –20.8 –22.6 –2.5 Yuki Chugoku Jpn Gro JP EQ IRL 09/24 JPY 6876.00 –31.8 –35.8 –17.7 Europn Forager USD B OT OT CYM 08/29 USD 198.32 –3.3 –4.8 8.4 Index Linked Bd Fd SEK OT BD LUX 09/24 SEK 12.84 2.8 5.5 3.1 Eq. Global A GL EQ LUX 09/23 USD 28.16 –26.4 –28.4 –8.5 Yuki Chugoku Jpn Inc JP EQ IRL 09/24 JPY 7022.00 –19.2 –25.6 –12.7 ler to shed Chrysler’s retirement and tween the two companies. fuel-efficient cars. lost $400 million so far this year and micort in the U.S. market. The case Gl Utilities Abs Rtn USD A OT OT CYM 08/29 USD 100.13 –16.6 –10.7 –1.9 Medical Fd OT EQ LUX 09/24 USD 3.34 –13.2 –11.3 –2.7 Eq. Global Technol A OT EQ LUX 09/23 USD 5.34 –24.7 –29.7 –9.9 Yuki Chugoku JpnLowP JP EQ IRL 09/24 JPY 9942.00 –23.7 –29.8 –14.0 health-care liabilities, which were In July, Daimler Chief Financial The auto maker has closed plants, has $11 billion in cash. Japan Abs Ret USD A AS EQ CYM 07/31 USD 141.61 –9.5 –17.9 –7.4 will go to trial, likely to be sched- Short Medium Bd Fd SEK NO MM LUX 09/24 SEK 9.06 2.0 2.9 2.8 Eq. Gold Mines A OT EQ LUX 09/23 USD 23.28 –22.3 –18.9 1.3 Yuki Chugoku JpnPurGth JP EQ IRL 09/24 JPY 6155.00 –29.7 –37.3 –20.0 Latin America USD A GL EQ CYM 08/29 USD 13.89 1.9 2.4 16.3 Technology Fd OT EQ LUX 09/24 USD 2.16 –24.3 –22.8 –3.7 Eq. Japan A JP EQ LUX 09/22 JPY 969.95 –26.7 –29.3 –17.4 folded into the new Chrysler holding Officer Bodo Uebber said the risk eliminated shifts and trimmed its —Edward Taylor uled for January, U.K.-based drug Paragon Limited USD A EU EQ CYM 08/29 USD 307.57 11.9 27.2 21.1 World Fd GL EQ LUX 09/24 USD 2.22 –17.2 –19.1 4.0 Eq. Japan Sm Cap A JP EQ LUX 09/22 JPY 1096.91 –35.7 –34.0 –33.8 n Yuki Daishi Series company. News of further talks was through the company’s remaining payroll, but revenue has fallen be- contributed to this article. maker AstraZeneca said, adding UK Fund USD A OT OT CYM 08/29 USD 169.04 6.3 1.9 6.1 Eq. Japan Target A JP EQ LUX 09/22 JPY 1776.62 –12.3 –19.3 –11.4 Yuki Daishi General JP EQ IRL 09/24 JPY 9272.00 –27.9 –35.7 –18.6 n SEB Fund 4 n Eq. Switzerland A CH EQ LUX 04/17 CHF 36.35 –16.6 –21.3 –4.3 that it is confident of the strength PT CIPTADANA ASSET MANAGEMENT Short Bond Fd EUR EU MM LUX 09/24 EUR 1.27 1.8 2.3 2.5 n Yuki Hokuyo Japan Series Tel: 521-3479 Fax: 521-3478 Website: www.ciptadana-asset.com Eq. UK A UK EQ LUX 09/23 GBP 12.01 –29.6 –32.5 –14.0 of the intellectual property protect- Short Bond Fd SEK NO MM LUX 09/24 SEK 21.36 1.8 2.7 2.7 Eq. US ConcenCore A US EQ LUX 09/23 USD 21.11 –21.4 –20.5 –4.5 Yuki Hokuyo Jpn Gen JP EQ IRL 09/24 JPY 6288.00 –28.7 –36.0 –16.9 Indonesian Grth Fund EA EQ CYM 09/17 USD 85.03 NS –19.7 2.2 Short Bond Fd USD US MM LUX 09/24 USD 2.49 1.3 2.5 3.4 Eq. US Lg Cap Gr A US EQ LUX 09/23 USD 16.08 –20.1 –18.5 –3.5 Yuki Hokuyo Jpn Gro JP EQ IRL 09/24 JPY 5311.00 –33.9 –41.2 –23.4 ing the product. Analysts said As- Yuki Hokuyo Jpn Inc JP EQ IRL 09/24 JPY 6973.00 –17.3 –26.5 –13.0 n RUSSELL INVESTMENT GROUP n SEB Fund 5 Eq. US Mid Cap A US EQ LUX 09/23 USD 29.18 –25.4 –23.8 0.4 traZeneca has gained valuable time Multi-Style, Multi-Manager Funds www.russell.com Alpha Bond Fd SEK -A- NO BD LUX 09/23 SEK 10.26 0.4 1.3 1.0 Eq. US Multi Strg A US EQ LUX 09/23 USD 23.03 –20.0 –21.6 –6.1 n Yuki Nishi Nippon City Japan Series U.K. watchdog thanks to the ruling, as the trial is Actions France A EU EQ IRL 09/23 EUR 751.39 –23.7 –25.9 NS Eq. US Rel Val A US EQ LUX 09/23 USD 22.55 –21.2 –26.5 –10.6 ProSieben warns on 2008 profit target Alpha Bond Fd SEK -B- NO BD LUX 09/23 SEK 9.21 0.4 1.3 1.0 Yuki Nishi-Nippon Cty GeneralJP EQ IRL 09/24 JPY 6717.00 –30.8 –38.4 –19.3 Core Eurozone Eq B EU EQ IRL 09/23 EUR 851.71 NS NS NS Alpha Bond Fd SEK -C- NO BD LUX 09/24 SEK 25.63 0.0 0.8 0.7 Eq. US Sm Cap Val A US EQ LUX 09/23 USD 21.71 –13.0 –21.5 –6.4 Yuki Nishi-Nippon Cty PurGthJpJP EQ IRL 09/24 JPY 6121.00 –31.4 –36.1 NS unlikely to end before the fourth Euro Fixed Income A EU BD IRL 09/23 EUR 1165.00 –6.7 –7.4 –4.9 Alpha Bond Fd SEK -D- NO BD LUX 09/24 SEK 8.54 0.0 0.8 0.7 Eq. US Value Opp A US EQ LUX 09/23 USD 19.92 –21.8 –27.7 –13.2 recommends use By Archibald Preuschat to halve its dividend, revise down its quarter of 2009. Teva is awaiting a Euro Fixed Income B EU BD IRL 09/23 EUR 1234.28 –6.3 –6.9 –4.4 Alpha Short Bd SEK -A- NO MM LUX 09/23 SEK 10.76 2.4 3.3 3.0 Money Market EURO A EU MM LUX 09/23 EUR 26.83 3.2 4.4 3.9 n Yuki Shizuoka Japan Series DAILY SHARE PRICE Euro Small Cap A EU EQ IRL 09/23 EUR 1254.39 –28.8 –35.2 –15.7 Alpha Short Bd SEK -B- NO MM LUX 09/23 SEK 10.09 2.4 3.3 3.0 Money Market USD A US MM LUX 09/23 USD 15.64 2.2 3.5 4.2 Yuki Shizuoka General Japan JP EQ IRL 09/24 JPY 6954.00 –27.4 –39.4 –17.9 targets and take a £1.6 billion ($3 bil- U.S. Food and Drug Administration MUNICH—Pan-European broad- ProSiebenSat.1 Media lion) charge in the first half. approval decision on its generic ver- of blood-clot pill caster ProSiebenSat.1 Media AG Analysts said the profit warning sion of the medicine. Advertisement [ ALTERNATIVE INVESTMENT FUNDS www.WSJ.com ] Advertisement By Elena Berton On the Frankfurt Stock Exchange said it would miss its 2008 earnings Wednesday’s close: Œ5.19, down 6.1% was expected, as ProSieben has suf- target because of continuing weak- fered from weak operations in Ger- 12-month and 2-year returns may be calculated over 11- and 23-month NAV — %RETURN — NAV — %RETURN — 52-week change: down 77% Arcandor AG 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 LONDON—A British watchdog ness in its German home market. many for two consecutive quarters, NAV — %RETURN — INDICES agency that scrutinizes the cost ProSieben shares were down Œ25 after first-quarter earnings fell German retailer Arcandor AG, FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR MultiAdv Arb EUR Hdg OT OT JEY 08/29 EUR 116.21 –4.4 –2.7 2.4 MultiAdv Arb GBP Hdg OT OT JEY 08/29 GBP 126.44 –3.8 –1.6 3.5 and value of new medicines has 6.1%, or 34 European cents, at Œ5.19 short of expectations. UniCredit ana- owner of the Karstadt department- NAV % RETURN 20 MultiAdv Arb Inst USD OT OT CYM 06/30 USD 98.01 –0.8 NS NS FUND NAME GF DATE CR NAV 1-WK 1-MO 1-Q 1-YR 2-YR recommended the use of Boe- ($7.63) in an overall lower German lyst Friedrich Schellmoser said that store chain, succeeded in striking a MultiAdv Arb S EUR OT OT CYM 08/29 EUR 122.55 –3.8 –1.6 3.7 n ARIX ABSOLUTE RETURN INVESTABLE INDEX hringer Ingelheim GmbH’s anti- midcap market. 15 he estimated in May that the com- refinancing deal with a banking con- MultiAdv Arb S GBP OT OT CYM 08/29 GBP 128.91 –3.0 –0.3 5.2 Feri Institutional Advisors, www.feri.de The company based in Unter- pany would post recurring Ebitda of n HARMONY CAPITAL MultiAdv Arb S USD OT OT CYM 08/29 USD 135.52 –4.2 –1.7 4.7 blood-clot drug Pradaxa in Brit- sortium, securing the company ac- ARIX Composite Gross USD OT 08/29 USD 1527.66 NS –1.2 –4.1 0.7 5.0 10 email: [email protected] Tel: + 44 207 290 6630 MultiAdv Arb USD OT OT GGY 08/29 USD 212.06 –5.0 –2.9 3.3 ain, giving the drug an important föhring, Germany, said it now ex- Œ700 million for 2008. cess to credit lines. The agreement NAV — %RETURN — n Harmony Cap Ltd A USD OT OT BMU 08/29 USD 2134.00 –8.6 –6.8 0.5 pects 2008 recurring earnings be- A spokesman for the company 788 ASSET MANAGEMENT LTD. n HSBC Uni-folio FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR vote of confidence. provides some security for Arcan- Harmony Cap Ltd B EUR OT OT BMU 08/29 EUR 2058.70 –8.3 –6.7 –0.3 5 [email protected] www.788am.com Alpha AdvantEdge OT OT JEY 08/29 USD 124.20 –6.8 –2.3 3.4 The U.K.’s National Institute fore interest, taxes, depreciation said Wednesday that it is also un- dor in the run-up to the Christmas Harmony Cap Ltd D USD OT OT BMU 08/29 USD 1225.00 –8.9 –7.2 0.1 Meriden Protective Div GL EQ AND 09/01 EUR 79.14 –2.4 –14.4 –11.9 788 China Fund Ltd OT OT CYM 08/29 USD 65.87 –78.2 NS NS Asian AdbantEdge EUR OT OT JEY 08/29 EUR 103.08 –13.1 –5.5 NS likely ProSieben can meet its 2008 Harmony Cap Ltd E EUR OT OT BMU 08/29 USD 1186.00 –8.4 –7.0 –0.7 for Health and Clinical Excellence, and amortization, or Ebitda, in a 0 season. The retailer didn’t give de- 788 China Smaller Cap OT OT CYM 08/29 USD 60.16 NS NS NS Asian AdvantEdge OT OT JEY 08/29 USD 184.79 –13.5 –5.3 7.7 revenue target of Œ3.3 billion, with- Harmony Cap Ltd F GBP OT OT BMU 08/29 GBP 1034.90 –7.9 –5.7 0.8 known as NICE, carries out tough range of Œ670 million to Œ700 mil- 2007 '08 tails on the size of the deal or what 788 Gl Asset Alloc. Fd OT OT CYM 08/29 USD 79.65 –44.5 NS NS Emerg AdvantEdge OT OT JEY 08/29 USD 176.63 –14.6 –5.1 6.7 lion. It had previously forecast 2008 out elaborating further. 788 Japan Fund Ltd OT OT CYM 08/29 USD 66.31 –46.4 NS NS n Emerg AdvantEdge EUR OT OT JEY 08/29 EUR 102.09 –14.4 –5.8 NS n OTHER FUNDS reviews of the costs and benefits kind of concessions it has made to HERMITAGE CAPITAL MANAGEMENT LTD. Source: Thomson Reuters Datastream Tel: +7501 258 3160 www.hermitagefund.com Europ AdvantEdge EUR OT OT JEY 08/29 EUR 133.01 –6.7 –5.5 2.1 For information about these funds, please contact us on Tel: +44 (0) 207 842 9694/9633 of drugs to decide which treat- Ebitda to be flat from the previous ProSieben’s major shareholders reach it, but it said it doesn’t plan n ALEXANDRA INVESTMENT MANAGEMENT Europ AdvantEdge USD OT OT JEY 08/29 USD 138.64 –7.2 –5.6 2.9 Medinvest Plc Dublin OT OT IRL 06/30 USD 1481.20 –0.2 3.4 9.2 The Hermitage Fund GL EQ JEY 09/19 USD 1080.67 –39.3 –27.9 –14.3 ments should be made available in year at Œ783 million. are financial investors Permira and to sell its Thomas Cook unit. The Alexandra Global Inv I OT OT VGB 08/29 USD 48.85 –25.9 –18.6 –5.9 Japan AdvantEdge JPY OT OT JEY 08/29 JPY 8537.03 –9.1 –8.7 –9.3 ProSieben said it lowered its fore- Kohlberg, Kravis Roberts &Co.In banks leading the consortium—Bay- n HORSEMAN CAPITAL MANAGEMENT LTD. Japan AdvantEdge USD OT OT JEY 08/29 USD 99.02 –7.8 –5.9 –5.4 the publicly funded health-care n ATLANTIC INVESTMENT MANAGEMENT - NEW YORK, NEW YORKT: +44(0)20 7838 7580, F: +44(0) 20 7838 7590, www.horsemancapital.com Lvgd Alpha AdvantEdge OT OT JEY 08/29 USD 122.02 –15.9 –9.5 0.7 system. Its decisions are closely cast on the back of negative effects has hit some other European broad- August they exercised a put option ernLB, Dresdner Bank AG and [email protected] Tel: +1 212 484 5050 Horseman EmMkt Opp EUR GL EQ GBR 08/29 EUR 186.81 0.8 24.2 NS Trading AdvantEdge OT OT GGY 08/29 USD 141.03 4.8 21.6 16.2 watched by health-care payers in from the implementation of a new casters hard. Last month, shares in and sold 12% of the company’s ordi- Royal Bank of Scotland Group PLC— Trading AdvantEdge EUR OT OT GGY 08/29 EUR 127.62 4.5 20.2 14.6 AJR International A US EQ VGB 09/17 USD 990.98 –6.4 –1.6 NS Horseman EmMkt Opp USD GL EQ USA 08/29 USD 192.50 0.5 24.7 NS other countries. advertising-sales model at the end ITV PLC, the U.K.’s largest commer- nary shares, representing 6% of declined to comment on the details AJR International B US EQ VGB 09/19 USD 166.24 –6.4 –4.0 NS Horseman EurSelLtd EUR EU EQ GBR 08/29 EUR 205.28 14.3 25.6 24.4 Trading AdvantEdge GBP OT OT GGY 08/29 GBP 133.66 6.2 22.9 16.7 US AdvantEdge OT OT JEY 08/29 USD 123.37 –2.4 2.4 5.2 n of 2007 as well as deteriorating con- cial broadcaster by sales, slumped as ProSieben’s basic share capital, to of the refinancing deal. Arcandor Cambrian Asia Ltd. AS EQ VGB 09/17 JPY 6867.00 –29.7 NS NS Horseman EurSelLtd USD EU EQ GBR 08/29 USD 214.34 14.1 25.7 25.6 RAINBOW ADVISORY SERVICES LTD. TEL: +242 322 5444 NICE has recommended that [email protected] a worsening decline in the advertis- Telegraaf Media Groep NV of the Cambrian Europe Ltd. EU EQ VGB 09/17 EUR 80.84 –22.7 NS NS Horseman Glbl Ltd EUR GL EQ CYM 08/29 USD 409.03 9.0 21.2 27.3 ditions in the German economy. shares rose 6.6% to Œ3.57 ($5.25). Rainbow Glb Hi Yld GL BD BHS 07/31 USD 3587.29 –11.9 –7.2 –3.7 doctors consider Pradaxa, known Cambrian Fund Ltd. A US EQ VGB 09/17 USD 630.06 –27.0 NS NS Horseman Glbl Ltd USD GL EQ CYM 08/29 USD 409.03 9.0 21.2 27.3 The wider economic slowdown ing market prompted the company Netherlands. Star Fund Ltd Inv GL BD BHS 07/31 USD 2492.23 –6.1 8.7 1.8 generically as dabigratan, as an op- Cambrian Fund Ltd. B US EQ VGB 09/17 USD 153.71 –27.0 NS NS n HSBC ALTERNATIVE INVESTMENTS LIMITED tion for preventing blood clots in Powe Capital Management Rodinia Fund Ltd US EQ VGB 09/17 USD 125.79 –12.8 –10.5 NS T +44 20 7860 3074 F + 44 20 7860 3174 www.hail.hsbc.com patients who have undergone hip- HSBC Absolute Companies or knee-replacement surgery, Boe- Modulus Europe, a European eq- HSBC Absolute Companies n INTEGRATED ALTERNATIVE INVESTMENTS, TEL: +44 (0)20 75149200 hringer Ingelheim, a closely held uities hedge fund run by London- Euro Absolute OT OT GGY 08/29 GBP 1.53 –5.7 –4.7 2.8 Email: [email protected] - Website: www.integratedai.com Powe Capital Management Euro Absolute EUR OT OT GGY 08/29 EUR 2.15 –6.3 –5.4 1.1 Libor’s accuracy again called into question based Altipro OT OT FRA 09/18 EUR 254.56 0.1 1.1 3.7 n German drug company, said Global Absolute OT OT GGY 08/29 GBP 1.08 –3.5 0.1 6.1 SUPERFUND ASSET MANAGEMENT GMBH LLP, has closed after heavy with- Integrated Dir Trading EUR OT OT CYM 08/29 EUR 106.88 4.3 15.6 9.4 Wednesday. Global Absolute USD OT OT GGY 08/29 USD 2.00 –4.7 1.4 5.9 For information about open funds, please contact us on Tel: +43 1 24700 By Carrick Mollenkamp Integrated Emg Markets EUROT OT CYM 08/29 EUR 90.07 –14.3 –10.5 –0.5 lend to one another. Other lending eral. Because of that, banks should drawals forced its board to liqui- n www.superfund.com *Closed for New Investments CAPITAL MANAGEMENT ADVISORS Integrated European EUR OT OT CYM 08/29 EUR 154.52 4.0 4.0 4.8 Using Pradaxa, a once-daily, n HSBC ALTERNATIVE STRATEGY FUND Superfund Cayman* OT OT CYM 09/16 USD 57.87 21.6 54.4 25.9 markets, including commercial pa- be able to pay a lower interest rate date. In a statement sent to inves- Phone Number: +1 441 295 59 29 Integrated Event Driven EUROT OT CYM 08/29 EUR 100.66 –6.1 –2.9 5.4 oral pill, would reduce costs Special Opp EUR OT OT CYM 08/29 EUR 107.04 –4.4 0.7 NS Superfund GCT USD* GL EQ LUX 09/16 USD 2857.00 17.8 36.7 18.3 The accuracy of a widely used in- per, which are short-term IOUs is- than they do when they borrow from tors Tuesday, Powe Capital founder CMA Dynamic OT OT BHS 08/29 USD 1565.70 –4.0 –3.3 3.5 Integrated Lg/Sh Sel F EUR OT OT CYM 08/29 EUR 94.11 –5.9 –3.1 5.0 Superfund Gold A (SPC) GL OT CYM 09/16 USD 858.18 –2.4 27.6 21.0 Special Opp Inst EUR OT OT CYM 08/29 EUR 100.53 –3.9 1.6 NS linked to administering the ther- CMA MultHdge Arbtrge OT OT CYM 08/31 USD 1865.29 –3.4 –2.3 3.9 Integrated MultSt B EUR OT OT VGB 08/29 EUR 134.12 –3.9 0.5 3.7 Superfund Gold B (SPC) GL OT CYM 09/16 USD 904.06 –3.4 31.7 26.5 terest rate, seen as critical to judging sued by companies, have also strug- each other because those loans are Rory Powe said the fund had re- Special Opp Inst USD OT OT CYM 08/29 USD 109.69 –4.0 1.9 NS apy most commonly used today, CMA MultHdge Balncd OT OT CYM 08/29 USD 1347.49 –3.8 –2.2 2.9 Integrated Relative Value EUROT OT CYM 08/29 EUR 99.24 –1.2 0.1 3.7 Superfund Q-AG* OT OT AUT 09/16 EUR 7305.00 13.0 24.7 15.3 the health of the financial markets at gled, potentially causing a credit unsecured. ceived “substantial redemption no- Special Opp USD OT OT CYM 08/29 USD 108.44 –4.4 1.2 NS Sanofi-Aventis CMA MultHdge Growth OT OT CYM 08/29 USD 1977.14 0.1 1.1 5.1 n SA’s Lovenox, crunch to spread throughout the But on Monday, the rate for the n KREDIETBANK LUXEMBOURG WEAVERING CAPITAL a precarious time, is coming under tices” and expected more in view of CMA MultiHdge Lvrgd OT OT CYM 07/31 USD 1351.35 –5.4 –9.6 4.4 n HSBC Portfolio Selection Fund which is given via injection and www.kbl.lu Fax : +352 47 97 73 911 www.weaveringcapital.com [email protected] T:+44(0)2073554720 question for the second time this economy. 28-day Fed facility was 3.75%, which market volatility. Pricewaterhouse- GH Fund AP OT OT CYM 08/29 EUR 137.62 –2.8 3.9 8.9 Weavering Macro F.I. Fd GL OT CYM 08/29 USD 175.50 6.4 13.9 14.0 KBL SPOP Investing OT OT LUX 08/31 EUR 2078.83 –5.7 –2.3 5.6 needs to be monitored, NICE said. Libor is supposed to reflect aver- was much higher than Libor. On Mon- GH Fund CHF Hdg OT OT JEY 08/29 CHF 117.21 –4.4 0.3 4.5 year. Coopers has been appointed as liqui- KBL SPOP Investing OT OT LUX 08/31 USD 2005.77 –6.0 –2.2 6.6 n WINTON CAPITAL MANAGEMENT LTD GH Fund EUR Hdg OT OT JEY 08/29 EUR 127.69 –3.3 2.3 6.5 Pradaxa, approved for sale in Doubts about the London inter- age bank-borrowing costs. Overseen day, the one-month dollar Libor was dator, and the intention is to return KBL SPOP Long/Short Eq OT OT LUX 08/31 USD 543.52 –17.9 –10.0 NS Tel: +44 (0)20 7610 5350 Fax: +44 (0)20 7610 5301 GH Fund EUR Hdg (Non-V II)OT OT JEY 08/29 EUR 113.35 –3.2 2.3 6.5 the European Union in March, KBL SPOP Long/Short Eq OT OT LUX 08/31 EUR 536.69 –17.5 –10.0 NS Winton Evolution EUR GL OT VGB 08/29 EUR 1306.78 4.5 15.4 10.8 bank offered rate, or Libor, center on by the British Bankers’ Association 3.18% while Tuesday’s rate was an initial 80% of the fund’s net asset GH Fund EUR Hdg (Non-V) OT OT JEY 08/29 EUR 127.69 –3.3 2.3 6.5 Winton Evolution GBP GL OT VGB 08/29 GBP 1279.66 4.9 16.5 12.0 works by blocking the effect of an whether banks are understating in London, the rate serves as a bench- 3.21%. It jumped to 3.43% Wednes- value in cash to investors immedi- GH Fund GBP Hdg OT OT JEY 08/29 GBP 139.76 –2.4 4.0 8.3 Winton Evolution JPY GL OT VGB 08/29 JPY 116157.65 1.1 11.2 6.9 GH Fund Inst EUR OT OT JEY 08/29 EUR 97.98 NS NS NS enzyme involved in the formation what it costs them to borrow dollars mark for the borrowing costs of day. ately. Having topped $1.3 billion in n CARLO SCEVOLA & PARTNERS Winton Evolution USD GL OT CYM 08/29 USD 1272.60 3.8 15.1 11.4 GH Fund Inst JPY OT OT JEY 08/29 JPY 9643.52 –5.0 –0.2 NS Winton Futures EUR GL OT VGB 08/29 EUR 185.52 9.3 22.4 15.7 of blood clots. in stressed financial markets. Libor’s homeowners and companies. Earlier this year, banks com- Tel +44 (0) 20 7419 5671 assets last September, the fund has GH Fund Inst USD OT OT JEY 08/29 USD 113.92 –3.0 3.3 8.4 Winton Futures GBP GL OT VGB 08/29 GBP 198.82 10.3 24.4 17.3 Other companies are also devel- reliability became an issue again this Concerns about Libor’s accuracy plained to the BBA that rival banks www.rescgf.com Winton Futures JPY Lead SeriesGL 2 OT VGB 08/29 JPY 13482.81 7.1 19.1 12.8 been hit by losses. The fund is down GH FUND S EUR OT OT CYM 08/29 EUR 133.51 –2.3 3.6 7.8 emerged out of the rates being paid Resolute Capital Gth Fd OT OT VGB 08/29 USD 1225.83 9.1 15.8 10.7 GH FUND S GBP OT OT CYM 08/29 GBP 138.36 –1.8 4.9 9.3 Winton Futures USD GL OT VGB 08/29 USD 662.35 9.3 23.1 16.8 oping new oral anticlotting drugs. week when banks paid higher inter- might not be reporting their true bor- 21% so far this year, and assets have GH Fund S USD OT OT CYM 08/29 USD 152.09 –2.6 3.9 9.0 n MERIDEN GROUP n Two products not yet approved est rates to borrow using collateral in another market used by banks to rowing costs because they didn’t dwindled to just Œ330 million n D'AURIOL FUNDS WWW.DAURIOL.BIZ ZULAUF EUROPE FUNDS GH Fund USD OT OT GGY 08/29 USD 282.16 –3.5 2.6 7.7 Tel: + 376 741 175 Fax: + 376 741 183 Email: [email protected] Phone: +353 1436 7200 Fax: +353 1672 5361 www.zulaufeurope.ky for sale in the U.S. or Europe are than they did for unsecured loans. get cash. The Federal Reserve’s term- want to admit that others were treat- ($485 million), Mr. Powe said. 2 FUNDS OF FUNDS OF HEDGE FUNDS Hedge Investments OT OT JEY 08/29 USD 142.53 –2.9 3.0 7.8 Antanta Combined Fund EE EQ AND 09/19 USD 383.08 –53.9 –50.7 –33.2 Zulauf Europe Fd EUR OT OT CYM 09/12 EUR 149.79 5.8 12.5 6.1 Xarelto from Bayer AG and Those questions come as central auction facility, one of numerous ef- ing them as if they had troubles. D'Auriol Alt Non-Lev A EU OT CYM 07/31 EUR 124.32 –4.0 –2.6 5.0 Leverage GH USD OT OT GGY 08/29 USD 137.26 –10.0 –0.7 8.5 Antanta MidCap Fund EE EQ AND 09/19 USD 920.58 –49.2 –41.2 –10.7 Zulauf Europe Fd LP OT OT CYM 03/31 USD 173.04 1.2 12.5 6.3 D'Auriol Opp F3 EUR EU MM CYM 07/31 EUR 1283.41 –6.3 –6.7 2.3 MultiAdv Arb CHF Hdg OT OT JEY 08/29 CHF 107.57 –5.7 –4.6 0.6 Meriden Opps Fund GL OT AND 09/03 EUR 103.98 –7.2 –6.1 –0.2 Zulauf Europe Fd USD OT OT CYM 09/12 USD 313.42 4.5 12.2 7.4 Johnson & Johnson, and apixa- banks inject liquidity into the mar- forts the Fed has been using to fight Spokeswoman Lesley McLeod ban, co-developed by Bristol-My- ket to restore the confidence of the credit crunch, allows banks to said the BBA stands by the Libor. “Li- —Compiled from staff For information about listing your funds, please contact: Peter Jennings, tel: +44-20-7842-9674; email: [email protected] or Carson Wong tel: +852 2831-6481; email: [email protected] ers Squibb Co. and Pfizer Inc. banks that have been reluctant to borrow, but they must put up collat- bor is accurate,” she said. and wire service reports. 10 THURSDAY, SEPTEMBER 25, 2008 THE WALL STREET JOURNAL. * THE WALL STREET JOURNAL. THURSDAY, SEPTEMBER 25, 2008 27 CORPORATE NEWS

www.efinancialnews.com Testing China’s imports U.K. firm CVC liquid milk, yogurt and candy— forcement of public-safety stan- More countries seek made by 22 companies. So far, baby dards at all stages of manufactur- Kazakhstan plans for bailout fund forms U.S. board formula contaminated by ing. “The melamine situation just stricter food rules; melamine has killed at least three underscores the message that we U.S. Treasury bonds in the past babies and sickened more than are trying to deliver, and that is you Government seeks week will further restrict new for investments some choose bans 50,000, have to know what’s coming into emerging-market bond sales. U.K. buyout firm CVC Capital Taiwan and Indonesia have now your factory and what’s going out to raise $6 billion In a research note to clients, Partners has formed a U.S. advisory China’s recent troubles with con- joined the list of at least 12 regions of your factory,” said Nancy Nord, Luis Eduardo Costa, emerging- board several weeks after appoint- taminated milk are prompting in- to ban Chinese-made dairy prod- acting head of the U.S. Consumer to rescue bad loans market analyst at Commerzbank, ing a managing director to lead a creasing skepticism in other coun- ucts. Product Safety Commission. said the volatility in U.S. Trea- new team to take advantage of bat- tries of the quality control of its New Zealand’s Food Safety Au- Ms. Nord and other U.S. and Eu- In Manila, police inspect bottled By Duncan Kerr surys is a clear indication that the tered stocks. products, despite efforts by Chinese thority warned the public on Wednes- ropean officials were in China pro- dairy products following a ban markets aren’t convinced that the Stephen Bollenbach, Rose Marie authorities to contain the crisis. day that “unacceptable” amounts of moting compliance with product- on all milk imports from China. HE KAZAKHSTAN govern- rebound will be immediate and Bravo and R. Brad Martin have been Countries stepped up testing of melamine were found in a popular safety regulations that were tight- ment is planning to raise a appointed the first three members

Associated Press Associated one-way only. foods imported from China after Chinese candy called “White Rabbit ened following a spate of scandals of the new board, whose role is to T $6 billion fund to rescue dis- “We have to bear in mind that Creamy Candies.” British supermar- last year over unsafe or shoddy the first Chinese dairy company to Fonterra said Wednesday the help CVC identify investment oppor- tressed domestic loans from the the inventory of loose paper—rela- Loretta Chao ket chain Tesco PLC said it recalled products, including toys, tires, be implicated. Sanlu’s products scandal had affected its financials. tunities in the U.S., according to a By in Beijing balance sheets of Kazakh banks, in tively illiquid emerging-market Simon Louisson the candy as a precautionary mea- drugs and pet food. were laced with the highest concen- It booked a 139 million New a move mimicking the U.S. Trea- statement. and in bonds—is still massive,” he said. sure from its stores in the U.K, China The milk scandal also has trations of melamine found to date, Zealand dollar (US$95 million) im- sury’s plan to prop up the banking Mr. Bollenbach is the former Wellington, New Zealand “We are talking about a massive re- and Malaysia. proved damaging to New Zealand and authorities say the company pairment charge against the carry- sector by purging troubled assets chief executive of Hilton Hotels duction in market-making activity Chinese authorities disclosed that Also, U.S. and European con- dairy giant Fonterra Co-operative was responsible for a coverup last- ing value of its investment in San from the financial system. Corp., a role he retired from in 2007. in the emerging-market corporate the industrial chemical melamine sumer-safety officials said the cri- Group, which in 2005 bought 43% ing for at least months that caused Lu. That left a residual value of Kazakh banks have come under Ms. Bravo was vice chairman of Lon- world.” had tainted products—including sis highlights the need for better en- of Shijiazhuang Sanlu Group Co., even more children to get sick. NZ$62 million in Sanlu, mainly its severe strain over the past year don-based luxury-goods company physical plant. “Sanlu has been while their access to the capital Banks in Russia, among other Burberry Group PLC until June damaged very badly,” said Fonterra markets for funding has been im- countries in the CIS, have come un- 2007. Mr. Martin was formerly the Chief Executive Andrew Ferrier. paired, a fragile position that has der stress, according to analysts, chief executive of Saks Holdings Inc. “It’s hard to say how Sanlu could be been exacerbated by a slowing who said Russian bank bonds are from 1989 until 2006, and chairman reconstructed.” economy and highlighted by their Reuters now on average trading at one per- from 1987 to 2007. Still, Fonterra said it remained heightened default risk. Kazakh Finance Minister Bolat Zhamishev said the nation is in talks with foreign centage point above metal-and- “Our advisory boards in Europe committed to China. Henry van der Last week the cost of buying banks to garner advice over the creation of bailout funds. mining-sector bonds. and Asia have been invaluable in the Heyden, the company’s chairman, five-year protection against the Mr. Costa said this pricing dif- introduction of investment opportu- said, “We are focusing all our ef- risk that JSC Kazkommertsbank ferential highlights the continu- nities, providing insight into indus- forts on what Fonterra can best do and BTA Bank JSC would default in talks with foreign banks to gar- to address their nonperforming ing “pressure on the Russian finan- try trends and issues as well as oper- to work with the Chinese authori- on their outstanding debt was ner advice over the creation of loan books on their own. “We cial sector” and that the Renais- ational expertise,” said Chris Sta- ties and help get safe dairy prod- trading well above 10 percentage bailout funds, and that the fund it don’t mean entirely hopeless as- sance Capital deal Monday, in dler, managing partner of CVC’s ucts to Chinese consumers.” points, an increase of as much as plans would be launched this year. sets,” he said. which the bank said it was selling New York office. Meanwhile, shelves around the 70% from six months ago, accord- “If we talk about sources for its Kazakh banks aren’t alone a 50% stake to billionaire business- Earlier this month, CVC ap- world continued to be emptied of ing to Markit. That means it costs financing, then we can say that it among the Commonwealth of Inde- man Mikhail Prokhorov for $500 pointed managing partner Chinese products with any possible about $1 million a year for five will be $1 billion in budget money pendent States in having to deal million to shore up its own bal- Jonathan Feuer to lead its new finan- dairy ingredients. years to insure $10 million of out- and $5 billion from the market,” with distressed assets or having ance sheet, is “material proof that cial-institutions sector team to Taiwan’s Health Department late standing debt via credit-default he said. The government is plan- limited access to the capital mar- the litmus test on the Russian work alongside the country-invest- Tuesday issued a ban on all products swaps, derivative instruments ning to structure the fund so that kets. The sharp rise in yields of banking sector is not over yet.” ment teams. containing China-made dairy and that offer a type of insurance it can issue securities backed by nondairy creamers. Taiwan plans to against default. A rise in the cost the banks’ distressed loan collat- list food security as a negotiation is- of CDS indicates a rise in the risk. eral. sue for its next round of talks with Speaking at a banking confer- Mr. Zhamishev added that the Beijing, scheduled for the end of Oc- ence in Kazakhstan this week, Bo- fund would focus primarily on “dis- tober or early November. lat Zhamishev, the Kazakh finance tressed” loans that can potentially Indonesian food retailers face minister, said the authorities were be repaid, leaving the local banks jail time and a fine of as much as US$200,000 if they fail to yank from their shelves Oreo cookies, M&M’s and 22 other products im- ported from China, officials said. LSE delays key upgrade Raids were being carried out at mar- kets across the nation, said Hus- Save 10% if you book by 26th September 2008 niah Thamrin, who heads the Drug If you have not registered for The Rise of Islamic Finance and Ethical Investments– future and Food Monitoring Agency, call- for its Italian platform opportunities & challenges on the 14th Oct 2008 in London, here are 4 reasons to register now!! ing on residents to alert authorities if any of the banned items were By Tom Fairless rope and Turquoise, the new trad- 1. It is the ONLY event that will allow you the opportunity to meet and discuss with top key level spotted in stores. And Luke Jeffs ing system backed by nine invest- industry players, regulators and Shari’ah scholars. In an effort to assure the world ment banks, the only way to trade its products are safe, Chinese regu- The London Stock Exchange Italian equities currently is through The current issues include: lators said this week that the Group PLC delayed a key upgrade to Borsa Italiana, the Italian exchange • Improving transparency and fostering credibility by harmonising best practices tainted-milk scandal has been its Italian trading platform that it acquired by the LSE a year ago. • Adopting lessons from the Western ethical “green” finance industry for Islamic investors brought under control and milk says must be completed before it ex- The new trading platforms • Defining the growing importance of Islamic Finance Attracting funds through Islamic Finance and Ethical Investment samples tested since Sept. 15 pands access to the country’s equi- need to link to the LSE’s settle- • Technology partner: Financial opportunities in Muslim majority countries showed no traces of melamine. ties market. The move will frustrate ment depository, Monte Titoli, • The rationale behind investing in Shari’ah compliant funds “There is no problem,” Xiang rivals such as Chi-X Europe Ltd., which they can’t do until the up- • Reviewing Islamic Equity in Europe-Frontline report Yuzhang, the national quality watch- which had planned to start trading grade to TradElect is complete. • dog’s chief inspection official, told • Global Real Estate and Infrastructure investments in Italy next week. Turquoise clashed with the LSE in reporters in Beijing. “It has been July when it told clients that the brought under control, more or less. The LSE said the migration of 2. Don’t miss the case study on SUKUK as an ethical investment class There are no more problems in the Italian stocks to the TradElect plat- Monte Titoli, had shelved plans to link market. As far as I know, there will form will occur on Oct. 13, rather with Turquoise’s clearer, EuroCCP. 3. Your speakers consist of: Institute Islamic Jurisprudence Bradford, Private Equity News, Hypo be no more bad news.” than Sept. 29, “to allow customers The LSE denied that Monte Titoli Real Estate Bank International AG, Institute of Islamic Banking &Insurance, IIBI, Delphi Risk more time to deal with testing, had been directly approached by Management, DIFC, Delphi Risk Management, Middle East Association, PricewaterhouseCoopers

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