The Credit Suisse Magazine Since 1895 Number 4 Oct./Nov. 2007 International Edition

East Point Zero Follow an Epic Journey to the Prime Meridian Seeing Green Abu Dhabi Builds First Zero-Carbon City

In Depth Credit Suisse CFO Believes in Bold Innovation Solar Energy Bright Future on the Horizon Robotic Helpers Japan’s Future Caregivers? Arthur Cohn An Oscar Winner With Big Dreams

Every year, thousands of children fall victim to organised and crimi- VIT\ZINÅKSQVO

I’m a “Westerner” by upbringing, in two respects: geographically, and ideologically. My hometown of St.Gallen, Switzerland, is situated between two parallel ridges of hills running east to west. Its business center divides the city neatly into an eastern and a western part. Those of us who grew up on the west side felt superior, as to our young, judgmental eyes the east looked shabby, bleak and uninspiring by comparison. In fact, we only had one reason ever to cross the imaginary dividing line: the Espenmoos football stadium. Ideologically speaking, I grew up during the height of the Cold War. The Berlin Wall and the “death strip” divided the world into two camps: good and evil, the free West against the totalitarian East. It was either one or the other, the world over. For us Europeans this side of the Wall, the West stood for progress, liberty and prosperity. By contrast, just beyond Austria, a common European heritage notwithstanding, a reign of terror endured that spelled oppression and pitiful plainness. Somewhere further beyond was the Far East, a mystery of even greater proportions. Strangely enough, Japan, known as the land of the rising sun, had been considered part of the West since the 19 6 0s. Apparently, ideology supersedes geography.

In 19 8 9, the Empire of Political Evil imploded, and capitalist, Western values steamrollered into the communist East without spilling a drop of blood. At once, the anonymous, submissive masses behind the Wall were perceived as friendly faces. The Iron Curtain had been pushed aside, and travelers stepping across were welcomed by stunning swathes of countryside and hurriedly spruced-up towns. The Far East, once seemingly so remote, also became a growing focus of Western interests. Developing nations were transformed virtually overnight into industrial superpowers. Even China, the last great bastion of communism, has by now been permeated by Western ideas. Formerly clear-cut borders have suddenly blurred, making the East ideologically non- existent, yet paradoxically omnipresent. In this Bulletin we therefore define the East in purely technical terms as the hemisphere to the right of the prime meridian, designated as the dividing line between East and West in 1884 by 25 nations in Washington, DC. For this reason, our eastbound journey also sets out precisely where the prime meridian intersects the equator, at the zero point between North, South, East and West. My childhood years are long behind me, and I became an “East Ender” in my hometown some nine years ago. My own children now mock the beloved West of my youth. And the world turns – yet again – eastward. 1st Place

Photo: Cédric Widmer Cédric Photo: Daniel Huber, Bulletin editor-in-chief Some think two generations.

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Bulletin 4/07 Where am I and where am I going? The question of our own relative position has preoccupied humans since time immemorial. The East – where the sun rises – has been a constant point of orientation. Architecture, navigation, daily life – they all take their cue from the “mother of all directions.”

East 06 Geographical Origins How Greenwich Came to Separate the East and West 08 Epic Journey Artists Travel to the Prime Meridian to Sink a Monument 14 Going Green An Oil Emirate Plans a Zero-Carbon, Zero-Waste Oasis 18 (DVWHUQ,QƠXHQFH WhyArchitectureAroundtheGlobeFacestheRisingSun 22 Controversial Theory Was It the East That Discovered the West?

Credit Suisse Business 27 In Brief Business News from Switzerland and Abroad 29 World Future Energy Summit Where Alternative Energy Solutions Take Form 30 In Depth Interview CFO Renato Fassbind Believes in Bold Innovation 32 Market Switzerland Credit Suisse’s New Strategy Bears Fruit in Switzerland 34 Useful to Know From the ABC of the Financial World

Credit Suisse Commitment 35 In Brief Building Schools in China and Kid’s Day at Credit Suisse 36 Museum of Fine Arts Bern Exhibition on India’s Contemporary Art 38 Enduro Challenge Employees of Credit Suisse Win Triathlon for Charity 40 Polo in Russia Sport of Kings Gains Footing in Moscow 41 Swiss Golf Crans-Montana Sponsored for 20th Year

Economy 42 Global Macro Outlook The World Economy Is Under Pressure 44 Forecast Switzerland Swiss Economy Is Still Booming Despite Global Pressure 46 Education Woes Rapid Economic Growth Demands More Educated Workforce 48 Solar Energy Market Big Breakthrough Imminent Thanks to Subsidies 50 Robotic Helpers JapanLooksForwardtoServiceRobotBoom 53 Literature Book Tips for Business People

Leader 54 Arthur Cohn TheOscar-WinningFilmProducerIsaDreamer

At a Click 58 @propos When Viruses Were Still Personalities 58 In Focus Join the Online Forum on Sustainable Investments Publishing Details 53 WheretoFindUs

Cover photo: Jochen Tack Jochen photo: Cover Your link to our know-how www.credit-suisse.com/infocus Geographical east is an arbitrary concept. Of course, the east has always existed as a direction – the question of one’s own relative position and the problem of reproducing a locational GHƟQLWLRQLVDUHFXUULQJWKHPHWKURXJKRXWKXPDQKLVWRU\%XW ZKHUHWRGD\ŒVHDVWVWDUWVDQGƟQLVKHVZDVHVWDEOLVKHGRQO\ around 120 years ago. In 1884, 41 representatives of the then 25 most powerful countries in the world assembled at a confer- ence in Washington, DC at the invitation of US President John Tyler, and decided that the zero meridian should pass through Greenwich, England. San Domingo (now known as Haiti) opposed WKHGHFLVLRQZKLOH%UD]LODQG)UDQFHDEVWDLQHG+RZHYHUWKH rest voted for Greenwich, and so, by cartographical convention, WKHHDVWZDVƟ[HGDWLWVFXUUHQWSRVLWLRQ The concept of the “east” naturally encompasses far more than just the question of where it starts or stops. It also covers IDUPRUHJURXQGWKDQDVLQJOHHGLWLRQRIWKH%XOOHWLQFDQLQ treating it as a central theme. The stories that follow cannot claim, therefore, to present a complete picture of the planet’s eastern hemisphere. They are intended rather to entertain – and in the best-case scenario to allow readers looking for the bigger picture to discover the remaining pieces in the puzzle for

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Expedition to Point Zero At approximately 600 kilometers south of the coast of Ghana, the zero-degree longitude meridian bisects the equator. This is geography’s “point zero” – used by everyone and yet universally ignored. An artistic collective resolved to give this neglected patch of the earth a physical anchorage. This is the story of their journey.

Text: Marcus Balogh

Approaching point zero was not supposed to have been like this. ally took turns to speak, often changing speaker in mid-sentence, Adventurous – yes. But perhaps not quite such an on-the-edge thus making it almost impossible to assign individual statements to experience. Yet now it felt like staring into an abyss. For weeks, the any one of them. four-strong artistic collective FallerMiethStüssiWeck (FMSW) had It was no coincidence that FMSW became intrigued by this been looking for a ship that would take them to the geographical somewhat mysterious point zero. The quartet of Lina Faller, Susanne “point zero” of the earth – to the place where the equator bisects Weck, Marcel Mieth and Thomas Stüssi founded the artistic collec- the zero-degree meridian that was originally set at London’s Green- tive FMSW at the Kunsthochschule (College of Art) Berlin-Weis- wich. In other words, the place where the traveler is both at position sensee back in 2001. Since then, their work has involved a continu- N 0° 00' 000'' E 0° 00' 000'' and S 0° 00' 000'' W 0° 00' 000'' at ous search for their own position both figuratively and literally. For the same time. Also known as the source of all positions of the instance, armed with a global positioning system (GPS), FMSW had world, and the mother of all lines of latitude and longitude. Yet their a ship “write” figures and forms on the surface of the Baltic Sea. search for a ship was proving fruitless, and despite the team being With this artistic excursion, and in most of their endeavors, the so close to their goal, the money was now threatening to run out coordinate system of latitude and longitude has played a significant and the return flight – for which the tickets had already been issued role. And once one begins contemplating the coordinate system, and paid – loomed ever larger on the temporal horizon. All this even one inevitably ends up at the starting point of all measurements – though the original idea had seemed so strikingly simple. point zero. Point zero owes its existence to a cartography convention in the FallerMiethStüssiWeck Approach Nothingness 19th century. It was not until October 1884 that the zero meridian Geography’s point zero lies in the Gulf of Guinea, around 600 kilo- was agreed at the International Meridian Conference in Washington meters south of the coast of Ghana. Despite being the reference DC by representatives of 25 nations. Up until that point, many coun- point of every geographical position determined around the world, tries possessed their own zero meridians, typically the geographi- this point is a neglected site, both on the globe and in the Atlantic. cal line of longitude of their own capital city or of an astronomical This is astonishing considering its importance. “We actually need observatory. International shipping was the only major user of the the absolute point zero in our lives more than we do the Himalayas, Greenwich meridian. Despite the potential for conflict inherent in for example – yet the Himalayas have been climbed many thousand establishing a zero meridian – after all, what was being decided times over, and have appeared millions of times in newspaper col- upon was the most prestigious of all lines of longitude – the con- umns. By contrast, there is nothing at point zero, nobody has been ference came to a peaceful ending. there, and nobody appears to be interested in it,” muse the four In their project documentation, FMSW describe point zero as

members of FMSW – in the interview, the four members continu- the “origin and center of any geographic orientation – yet not > FallerMiethStüssiWeck Photos:

Credit Suisse Bulletin 4/07 East Point Zero 09

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Credit Suisse Bulletin 4/07 10 East Point Zero

The corrosion-resistant container will preserve the vacuum for several thousand years even at a depth of 5,000 meters, where the water exercises a pressure of 500 kilograms per square centimeter. The voyage on a container ship was not just a restful experience – the ship’s captain also provided FallerMiethStüssiWeck with tips for dealing with the challenges of life in Africa.

coveted by anyone, not fought over by anyone, and not marked by 20 kilograms. These semicircular pieces were then seamlessly anyone, despite being used by everyone.” In view of the importance welded together by technicians in a high vacuum without the use and yet incomprehensible neglect of point zero, the four artists of any binding material. The result? A stainless steel ball with a decided to give it a material anchorage: “Our first idea was to plant circumference of 25 centimeters containing an approximation of a buoy at the site. But this would have been a seriously compli- nothing: a vacuum of 0.000001 bar. cated exercise. The ocean is around 5,000 meters deep at that FMSW Pass the Point of No Return point, so we could hardly have anchored the buoy with a chain.” Laying a foundation stone was the next idea that sprang to the The issue now was how the steel ball was to be transported to its minds of the collective. In keeping with the old tradition, contem- final resting place. Not an easy undertaking. Just boarding a plane porary documents could have been inlaid into the stone – but this was immediately ruled out. “We had conceived this undertaking as concept struck the collective as too narrow-minded. Ultimately, their a pilgrimage, as a journey to the center of the cartographical world. thoughts turned to the idea of an object with symbolic value – an What was important to us was not just arriving at our destination, object that represented nothingness itself. And so it was that the but the gradual approach.” For a moment, even the idea of traveling conversation of FMSW landed on the idea of a vacuum. “We became to Ghana by car was on the table. But this was perceived as too fascinated with the idea of sinking a vacuum at the spot. The ‘big dangerous by the expedition’s sponsors, the Bonn Art Foundation bang’ concept dawned on us at this point – because this was tied (Stiftung Kunstfonds Bonn) and the German Academic Exchange up with the notion that everything that exists today stems origi- Service (Deutscher Akademischer Austauschdienst). All of which nally from nothing. And so we set out to find out just how and where left passage by sea as the only option. people work with vacuums.” The Expedition toward Zero began in Hamburg on May 8, 2007, FMSW ended up with a Berlin-based franchise of an interna- on board a container ship belonging to the Grimaldi shipping com- tional company that provides electron-beam welding services to pany. From Germany the route led to Tilbury, a port in the East End power-station manufacturers and heavy industry. The very first of London, then on to Antwerp, Dacca, Benin and Lagos, before telephone exchanges were promising. The technical specialists were finally docking at Tema, the largest port in Ghana, some 25 kilo- excited by the artistic idea, and the artists were excited by the meters from Ghana’s capital Accra. The voyage itself was unevent- technology. Ultimately, a high-grade steel block weighing 140 kilo- ful. “The slow journey was intended to empty our heads. To enable grams was used to create two semicircular pieces, each weighing us to get close to the ‘zero’ phenomenon. How exactly can zero

Credit Suisse Bulletin 4/07 East Point Zero 11

Whenitfirstbecameapparentthatthejourneywouldstartthenextday,FMSW in their excitement bought boxes of fruit for themselves and the crew. The fruit then gradually rotted in the hotel room, as inevitably it was several days before the last stage ofthejourneycouldgetunderwayandthesteelballwasconveyedtoitsfinalrestingplace.

and nothingness be defined? When is something something, and part of the whole enterprise. On the telephone everything always when is nothing nothing?” seemed as if it would be perfect, but in reality most of the ships On a less philosophical level, the weeks spent aboard the ship the artists looked at proved unfit for their purpose. Either that, or to Tema gave the artists the chance to make friends with the cap- much too expensive. tain and the ship’s crew. “The captain was great. He gave us count- Time and again, FMSW’s quest for a suitable mode of transport less tips for dealing with African authorities and bureaucracy. And came to a dead end – and now it was not just the money that was he also alerted us to what we might be faced with when it came to running out, but time itself, as the tickets for the return flight had hiring an oceangoing ship in Tema. He exhorted us in particular not already been booked and paid. “When planning this back in Ger- to chose too small a vessel, and to make sure that whatever vessel many we just thought we’d arrive in Tema, choose a ship and off we did hire was fitted with sufficient lifeboats. Actually, we found we’d go. But Ghana is not Germany. It was a bit like a journey to the last remark more than a bit spooky.” the heart of darkness. We don’t mean that in any derogatory way The group’s first encounter with the reality of Africa was their at all. We just realized that things work differently there – no better, exchange with the Ghanaian customs officials. “Our captain had no worse. Just differently.” stocked up with cases of soft drinks, cigarettes and sparkling wine, But then somehow things fell into place. They found a vessel fit as he took the view that this was the best way to ensure a smooth for the high seas, with an owner and captain who came across not passage through customs upon arrival, cutting an eight-hour pro- just as trustworthy but also enthusiastic about the whole under- cedure down to just one.” taking. And the price seemed right, too. The whole trip was to cost Sure enough, the customs procedure lasted just the one hour. 9,000 dollars. More than FMSW had budgeted for, but in Ghana The officials even seemed to be enthusiastic about the idea of sink- it proved a competitive price. The only other hurdle remaining was ing a steel ball at the starting point of the world’s coordinate system. the fuel required for the voyage, or around 15 tons of diesel. “For some reason they seemed to like the idea of such an important “Fuel in Ghana is not the kind of thing you would think about in point lying just off the coast of Africa. It was as if the geographical advance. But fuel seemed to be only sold through a central agency. position of the point allowed them to hold some spiritual claim on And the person running this agency is a kind of king in his own something that benefits the entire world.” Upon arrival, FMSW set right – this much was clear to us the moment we entered his office. about finding a suitable ship for the passage to point zero. In hind- The rule in Ghana is that the cooler the office, the more important sight, the search for the right ship was probably the most difficult the man behind the desk. And this office was the coldest we’d >

Credit Suisse Bulletin 4/07 12 East Point Zero

This journey was not as romantic as the first couple of photos suggest. Thanks to raging seas, the final stage involved a sleepless night, while the precise circumnavigation of geography’s point zero required endless patience in a small inflatable dinghy. Time and again, the current and the swell caused FMSW to fear losing contact with their mother ship.

come across during our entire stay in Ghana.” The oil baron’s first captain had to leave the bridge twice to lean over the ship’s rail. offer was 15,000 dollars, a sum that made it clear that the project What’s more, contrary to the original agreement, the ship contained could now only be completed with significant financial commitment two further passengers for whom FMSW theoretically had to assume from the artists themselves. But this sum far exceeded what the complete responsibility: a priest and his assistant. “Somehow this group could muster. priest had got wind of our enterprise and decided that no trip to the And so began a hard bargaining process, in which the ship’s absolute point zero could be achieved without God’s assistance. So owner also became involved. “At the end of it we managed to gain without further ado he and his assistant embarked – the captain the concession of a flat fee of 17,000 dollars for ship and fuel proving no match for the eloquence of an African priest. So, at the together.” FMSW agreed to the amount even in the knowledge that last minute, the Expedition toward Zero was subjected to a mass – they didn’t actually have that sum of money with them. “At that mo- in which the whole crew participated – that consecrated it to God’s ment we all became aware that we were staring debt in the face, stewardship.” as our sponsorship money didn’t extend this far. But having come As they approached point zero, the four artists got into an inflat- such a long way, we wanted to see the project out – and the point able dinghy with a view to working their way slowly toward the point of no return obviously had been passed for good a long time ago.” in circles with the aid of a GPS navigation device. “To start with it was pretty awe-inspiring. The swell was enormous, the current FMSW Circle Point Zero strong, and we kept on being driven away from our goal. At times The average speed of the ship FMSW hired was 18 kilometers per we even lost sight of our mother ship. And there was the odd hour. As the point at which the equator bisects the zero latitude moment when we asked ourselves: What do we do if we’re driven meridian is 600 kilometers off the coast of Ghana, the artists were off course?” facing around 34 hours simply in terms of cruising time – one way. Reaching the ultimate zero point on the GPS device took hours. Added to which was the time required for calculating the precise Time and again, the small inflatable dinghy was tossed off course point zero. All in all, therefore, it was going to be a long, drawn- by a wave or by the current. “But when you’ve come that far, you out affair. want to do it just right. Just chucking the ball somewhere in the While the crossing from Hamburg to Tema had proceeded un- water was simply out of the question.” Finally heaving the 40- eventfully, the last 600 kilometers turned out to be a nightmarish kilogram ball over the side was a unique experience for the collec- journey. The sea was rough, with the swell so high that even the tive. “It was a leave taking. And it wasn’t easy for us. Somehow it

Credit Suisse Bulletin 4/07 East Point Zero 13

Saying goodbye to the ball was not easy for the artistic collective. It was like taking leave of a friend, as FMSW would later say. Moreover, the realization that the trip to the seabed would involve a journey of 20 minutes for the steel ball in total darkness also added a sense of eeriness to the final minutes. felt rather ignoble just releasing the ball here. All the more so be- FallerMiethStüssiWeck (FMSW) The artistic col- cause there was something quite eerie about its subsequent journey lective is made up of Lina Faller, born 1972 in to the seabed.” Sinking at a speed of around 4 meters a second, Schopheim, Germany, Marcel Mieth, born 1976 in the steel ball faced a journey of about 20 minutes before it would Kandel, Germany, Thomas Stüssi, born 1978 reach its final resting place at a depth of 5,000 meters. However, the aim of the expedition was not just to mark point zero. FMSW in Zurich, Switzerland, and Susanne Weck, born also brought back 50 liters of “zero water” from the intersection of 1978 in Munich, Germany. The four sculptors the equator and the zero degree line of longitude meridian. In ad- met at the Kunsthochschule Berlin-Weissensee dition, the quartet also bathed in “zero water.” These last two ac- and since 2001 have worked regularly as a col- tivities were the cause of great excitement among the crew. Even lective.Thecentralpointofmuchoftheirworkis the captain – who couldn’t actually swim – leapt into the water with thequestfortheirownposition,oftenusingthe a life ring around his chest. GPS system – the same as is used in navigational Looking back on their artistic expedition today, FallerMieth- systemsofmoderncars,forexample–asa StüssiWeck appear amazed at the naivety with which they undertook metaphor. the project – and also express surprise at how the project keeps coming back into their minds. “Of course, at some point you have The art project “Toward Zero – The Expedition to say goodbye to any project, even one like this. But that sunken toPointZero”wassupportedbytheBonn steel ball is now just lying there in the cold darkness. It’s a touching Art Foundation (Stiftung Kunstfonds Bonn) and notion that leaves us anything but cold. The ball may still be lying the German Academic Exchange Service there long after the coordinate system with the Greenwich merid- ian as the zero line ceases to exist. Even today, the project keeps (Deutscher Akademischer Austauschdienst). throwing questions at us. For example, how we deal with ephem- erality and eternity. And then you think: This action has probably changed our view of the world map forever. Every time we look at the globe, our eyes come to rest briefly on point zero and we think: That’s where it lies!” <

Credit Suisse Bulletin 4/07 14 East Abu Dhabi

Abu Dhabi Prepares for a Green Future Fiftyyearsago,AbuDhabiwasasleepyemirateonthePersianGulfandthemain WUDGHVZHUHƟVKLQJDQGSHDUOGLYLQJ7KHQRLOFDPHEULQJLQJZHDOWKDQGPDQ\DGYDQFHV 1RZ$EX'KDELLVSUHSDULQJIRUWKHSRVWRLOHUDDQGWDUJHWLQJOX[XU\WRXULVPFXOWXUH DQGWKHGHYHORSPHQWRIDOWHUQDWLYHHQHUJ\VRXUFHV)LIW\\HDUVIURPQRZHYHU\RQHZLOO ZDQWWROLYHWKHUH

Text: Daniel Huber

Even as recently as the 19 8 0s, the overweight, but lovable comic- further when it comes to interior luxury and comfort. From the point strip cat Garfield considered Abu Dhabi synonymous with a far-flung of view of topography, Abu Dhabi has the decisive advantage of eastern outpost at the world’s end. In a number of different episodes being able to fall back on some 200 natural islands to house its he wishes that his arch rival, Nermal, the terrifyingly cute kitten, ambitious tourism projects, with no need to resort to the artificial could be transported there, even going as far as singing a bitter- measures that are required in Dubai. As a general principle, the sweet “Abu Dhabi song.” Today cartoonist Jim Davis would certain- well-heeled visitor to Abu Dhabi can expect more than just sun, sea, ly choose a different location now that Abu Dhabi has become a sand and luxury suites. In 2009, for example, the exclusive For- booming city in the Middle East. The “Father of the Gazelle” – Arabic mula One circus will include a stop-off in Abu Dhabi for the first for Abu Dhabi – is the capital both of the emirate of the same name time. Directly alongside the 5.8-kilometer, state-of-the-art race and of the United Arab Emirates (UAE). The emirate itself is not only circuit, a large Ferrari “experience” park covering some 250,000 the largest, but also – thanks to its huge oil and gas reserves – square meters is being built on the island of Yas. In addition, the by far and away the richest of the seven emirates. Approximately global village of art cognoscenti can look forward to a museum 10 percent of the world’s crude oil reserves and some 5 percent of quarter of superlatives on the previously uninhabited island of Saa- its gas reserves sit underneath Abu Dhabi territory. Given these diyat. A total of five modern exhibition temples will emerge from natural jewels, experts estimate that Abu Dhabi will be able to rely the sands by 2015. The showpiece will be a satellite of the world- on fossil fuel wealth for decades to come. famous Louvre in Paris, but the site will also boast an offshoot of As a result of the vast wealth brought by its capacious oil wells, the Guggenheim Museum in Los Angeles. These monumental struc- the one-time fishing and pearl-diving village situated on an island – tures will be designed by the elite of modern architecture: Jean which did not even have its first paved road until 1961 – has spent Nouvel, Frank Gehry, Zaha Hadid and Tadao Ando. the last 20 years evolving into an imposing metropolis. In contrast Energy Experts Take on Reins of Responsibility to neighboring Dubai, which is looking to establish itself as an inter- national transport, tourism, and finance hub between Europe, Asia, But the far-sighted rulers of the emirate are not just relying on the and Africa, Abu Dhabi has opted not so much for size as restrained glamour of motor racing and the lure of fine culture. As long-term class. The city therefore has a more modest feel, with high-rise energy experts, they also consider themselves responsible for lead- buildings that are impressive rather than enormous, alongside ver- ing the alternative technologies of the future into a new phase. It dant parks and palm-lined boulevards. Abu Dhabi’s answer to the was with this in mind that the Abu Dhabi Future Energy Company Burj Al Arab seven-star hotel in Dubai was to spend some three (ADFEC) launched the Masdar Initiative, among others. Masdar billion dollars on the Emirates Palace Hotel, which may not look means “source” in Arabic. The initiative is seen as an answer to the

as spectacular as the monumental “sail” of Dubai, but goes a step growing shortage of global resources, and combines a number > Partners + Foster Young, Nigel Photo:

Credit Suisse Bulletin 4/07 East Abu Dhabi 15

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Credit Suisse Bulletin 4/07 16 East Abu Dhabi

of different projects aimed at supporting the development of new technologies in the realm of alternative energy, and marketing these 'LVFXVVLQJ)XWXUH(QHUJLHV technologies globally. Of course, one objective of the initiative is to and Abu Dhabi’s Vision With ensure that Abu Dhabi can retain its share in the global energy Dr Sultan Ahmed Al Jaber market in the medium term, and even increase it in the long term.

Vision of a CO2DQG:DVWH)UHH&LW\ Whyofallthingsisoneoftheworld’sleadingoil SDWURQVVHWWLQJLWVVLJKWVRQWKHGHYHORSPHQWRIQHZ The most spectacular project of this initiative is the world’s first DOWHUQDWLYHHQHUJLHV"$QGKRZZLOO$EX'KDELORRN CO -neutral, waste-free city in the heart of Abu Dhabi. In an area 2 \HDUVIURPQRZ"7KHCEO of Masdar, Sultan Ahmed of six square kilometers, situated next to the new airport and with $O-DEHUSURYLGHVWKHVHDQVZHUVDQGPRUH the sparkling sea at one side, work is in progress to create a walled- off city with no cars. The new city of the future, called Masdar, is being built in two phases. The first step is to construct a 40-mega- watt photovoltaic power station. The energy created by this fac- Interview: Daniel Huber tory – generated in a CO2-neutral manner – will first be used to power the construction of the city, which is expected to open its Bulletin:'ULYLQJIURP'XEDLWR$EX'KDELWKHPDQ\WUHHV gates by the end of 2009. Masdar will be a unique concentration DORQJWKHKLJKZD\DQGWKHPDQJURYHIRUHVWRQWKHRXWVNLUWVRI of research and training sites, and to a certain extent also of produc- WKHFLW\DQGWKHPDQ\OXVKSDUNVLQWKHFLW\FHQWHUDUHYHU\ tion sites for alternative energies. Specialized financing and mar- VWULNLQJPDLQO\EHFDXVHWKLVLVDFWXDOO\WKHPLGGOHRIWKHGHVHUW keting companies will also move into the city, however. The idea is Sultan Ahmed Al Jaber: It was always the desire and the vision of that not only researchers, students, scientists, financial experts and the late Sheikh Zayed bin Sultan Al Nahyan that Abu Dhabi should political scientists will work in this confined area, but that they will be a green city. These trees represent great wealth to us. together breathe life into their visions. Architecturally speaking, the )RUGHFDGHV$EX'KDELKDVSOD\HGDOHDGLQJUROHLQ project will combine the density of an enclosed city with the latest WKHRLODQGJDVEXVLQHVV,PPHQVHUHVHUYHVPHDQWKDWWKLVZLOO technologies emerging from alternative energies. Where transport UHPDLQVRIRUVRPHWLPHWRFRPH:LWKWKLVLQPLQGZK\ technology is concerned, Masdar will be home to a new high-speed LV$EX'KDELRIDOOSODFHVFRPPLWWHGWRWKHGHYHORSPHQWRI rail network that will connect this pioneering city of the future with QHZFOHDQHQHUJ\VRXUFHV" the city of Abu Dhabi. The general aim is to ensure that the distance That is another legacy from Sheikh Zayed’s clear vision. He firmly to the next public transport stop within this extremely compactly believed that, although Abu Dhabi would always have a central role constructed city is never more than 200 meters. A second construc- to play in the energy business, it must also stand apart as an envi- tion phase will see a number of wind parks, photovoltaic farms, ronmentally aware nation. That is why the primary purpose of the research fields and other installations built outside the city walls. Masdar Initiative is to seek new ways and means of tapping into Ultimately, the vision of a self-sufficient city in every respect could clean energy sources. As long-established energy experts, we see soon become a reality for the first time – and in Abu Dhabi. < the move in this direction simply as a natural and logical step. +RZZHOODFFHSWHGLVWKH0DVGDU,QLWLDWLYHDPRQJWKH SRSXODFHRI$EX'KDEL" The people of Abu Dhabi are completely behind it. Our former pres- ident firmly anchored in all of us this understanding of ourselves as a leading energy nation with a great environmental conscience. 'R\RXUHJDUGWKLVVWUDWHJ\RIVXVWDLQDEOHHQYLURQPHQWDOO\ IULHQGO\HQHUJ\SURGXFWLRQVLPSO\DVDVXVWDLQDEOHLQYHVWPHQWLQ WKHIXWXUHRI$EX'KDELDQGWKH8QLWHG$UDE(PLUDWHV" ,ƟOP\EHOLHYHWKH0DVGDU,QLWLDWLYHWUDQVFHQGVERUGHUV,WRIIHUVDQ open, global platform for companies not only from the UAE, Africa or Asia, but also from those around the world. Long ago, we began to hold talks with European, Asian and North American companies that can make a crucial difference to the development of solutions for the production of alternative, clean energies. And we have also entered into several alliances. Seeing how Abu Dhabi has mushroomed out of the sand ZLWKLQMXVWKDOIDFHQWXU\PDNHVRQHEHOLHYHWKDWDQ\WKLQJ LVSRVVLEOH$QG\HWFRXOGQŒWDUDSLGEUHDNWKURXJKLQWKHGHYHO RSPHQWRIQHZDQGDOWHUQDWLYHHQHUJLHVFRPHWRRVRRQIRU \RXURZQRLOLQGXVWU\" No. Alternative energies will not compete with traditional hydrocar-

7KHZRUOGŒVILUVWDWWHPSWWRFUHDWHD]HURFDUERQ]HURZDVWHFLW\ bon fuels. At most, they can be a complement to them. However, ZLOOEHEXLOWLQWKHKHDUWRI$EX'KDELRQDVL[VTXDUHNLORPHWHU they can help to bridge the widening gap between the growing de-

VLWHQH[WWRWKHQHZDLUSRUW mand for energy and the supply available on the global market. The Photos: Nigel Young, Foster + Partners | Francisco Fernandez

Credit Suisse Bulletin 4/07 East Abu Dhabi 17

world will always need oil, even if it is only for the industrial produc- tion of certain materials. 7KH0DVGDU,QLWLDWLYHDLPVWRDWWUDFWƟUPVIURP around the world to Abu Dhabi by 2015 … That is our goal. I’d give a conservative estimate of 1, 20 0 compa- nies relocating to Abu Dhabi by 2015 as entirely realistic. :KDWVRUWRILQFHQWLYHVDUH\RXRIIHULQJWKHVHFRPSDQLHV WRFRPHWR$EX'KDEL" We’re offering these companies a unique package. Currently the alternative energies sector is scattered throughout the world. Abu Dhabi is offering these companies the exclusive opportunity of a joint global platform for the development of alternative energies. The city will be located in a special zone with extremely business- friendly conditions. For example, there will be no taxes of any kind there. Another benefit will be a very straightforward and ef- ficient registration process, with all of the bureaucratic formalities handled centrally. Companies will have direct access to a pool of highly educated experts that is globally unparalleled. This is rein- forced by our cooperation agreement with MIT and the Masdar Research Network which provides access to seven of the world’s best research institutions on three continents. What’s more, there will be specialist boutique shops that will help them to finance and 'U6XOWDQ$KPHG$O-DEHULVWKH&KLHI([HFXWLYH (CEO) oftheAbuDhabiFutureEnergy market new companies and projects. It will be a very integrated 2IƟFHU Company (ADFEC),ZKLFKLVPDQGDWHGE\WKHJRYHUQ community. PHQWWRXQGHUWDNHDQGGULYHWKH0DVGDU,QLWLDWLYH %XWSHRSOHFDQŒWMXVWZRUNDOOWKHWLPH:KHUHZLOOSHRSOH 3UHYLRXVO\KHKHOGYDULRXVSRVLWLRQVZLWKGLIIHUHQW OLYHDQGVSHQGWKHLUOHLVXUHWLPH" responsibilities within ADNOC/GASCO'U$O-DEHU Our aim is that 30 percent of the people who work in the city will LVDOVRDQDGYLVRUDW0XEDGDOD'HYHORSPHQW also live there. The city should have something going on around the Company where he has held broad responsibilities clock, and shouldn’t become a ghost town when work is finished WKDWLQFOXGHGGLUHFWSURMHFWRULJLQDWLRQDQGH[H for the day. With that in mind, it will be anything but isolated. It is to FXWLRQLQWKHHQHUJ\LQGXVWU\DQGXWLOLWLHVVHFWRUV be built in the heart of Abu Dhabi with direct connections to the DQGUHODWLRQVKLSPDQDJHPHQWZLWKNH\PXOWL airport and to the sea. QDWLRQDOFRPSDQLHVDQGJRYHUQPHQWLQVWLWXWLRQV CO +RZZLOOSHRSOHJHWDURXQGLQWKLVDPD]LQJ 2DQG +HDOVRVLWVRQDQXPEHURIERDUGVRIFRPSDQLHV ZDVWHQHXWUDOFLW\" DQGRUJDQL]DWLRQV'U$O-DEHUKROGVD3K'LQ There will be no cars at all within the city. Under the master plan, HFRQRPLFVZLWKHPSKDVLVRQIRUHLJQGLUHFWLQYHVW residents should never be more than 200 meters away from the PHQWIURP&RYHQWU\8QLYHUVLW\UK,an0%$ and most important places in their daily lives. People will walk or cycle BSFLQFKHPLFDOHQJLQHHULQJIURPWKH8QLYHUVLW\ or use special electric vehicles. There will also be a direct fast train RI6RXWKHUQ&DOLIRUQLD/RV$QJHOHV link to the airport and to the center of Abu Dhabi. $OLIHZLWKRXWFDUVLQWKH0LGGOH(DVWLVKDUGWRLPDJLQH Will people really want to do without this freedom of mobility, QRWWRPHQWLRQVWDWXVV\PERO" /HWŒVYHQWXUHDJOLPSVHLQWRWKHPRUHGLVWDQWIXWXUH People living and working in Masdar certainly won’t have to do with- +RZZLOO$EX'KDELORRNLQ" out their cars completely. There will be large, secure car parks out- Let’s consider Abu Dhabi in 2030. I can assure you that Abu side the city, so anyone who wants to can easily drive their Ferrari Dhabi will then be a place where everyone will want to live. The city or any car for that matter right up to the city limits. From that point will look completely different to how it looks today. For example, the on, however, they’ll have to use emission-free vehicles. center will no longer be here on the island, but north of the airport, :KLOHZHŒUHRQWKHVXEMHFWRI)HUUDULŏLQ$EX'KDELZLOO where it will be built from the ground up. Yes, Abu Dhabi will be a EHJHWWLQJLWVRZQ)RUPXOD2QHFLUFXLWRQWKHLVODQGRI

Credit Suisse Bulletin 4/07 18 East Architecture

Aligning Architecture With the Rising Sun For thousands of years the points of the compass have played an important role in architecture to provide orientation between the heavens and the earth. Throughout the ages, and across many different cultures, one direction was most favored – the east. Countless cities and dwellings have been built in alignment with the east, which is also the path of the energizing morning sun.

Text: Regula Gerber

The place where the sun rises has special significance: The sun is 7KHGLUHFWLRQRIWKHULVLQJVXQWKHHDVWLVRIHPLQHQWVLJQLƟFDQFH the giver of life and light, and divides the day, month and year into in the Vastu system of architecture in particular. According to his- cycles that are beyond man’s influence. For millennia, this realiza- torians, this tradition goes back 8,000 or 9,000 years. Vastu was tion has left its mark on the everyday life, religion, and consequent- an integral element of everyday life in ancient India. Cities, palaces, ly the architecture of cultures far and wide for example in India, tem ples, private homes, theaters and military fortifications were all China, Rome and Greece. Archaeological research and excavations constructed according to its principles. The architectural principles have shown that these ancient civilizations shared a common un- of Vastu are largely based on the properties of the different points derlying store of knowledge. But the motivations and mechanisms of the compass. Every direction has a distinctive quality, which is behind their architecture, particularly the way buildings have an considered both in the design of the building and in the layout of east erly orientation, are different. While in many cultures this orien- its interior. This quality affects everything located or moving in this tation signifies a metaphysical link between architecture and religion, direction. for others the primary justification has been one of consideration (DVWQRUWKHDVWDQGVRXWKHDVWKDYHVSHFLDOVLJQLƟFDQFH$FFRUG for health or function. ing to Vastu, east is supreme because it is the place where the sun and its energy rise. It is considered the best direction, stands for The Direction of Power and Strength wealth and prosperity, and is described as paternal in nature. It Ancient sages from both East and West were exceptionally skilled is ruled by Indra, lord of the demigods, who embodies power and at observing natural phenomenas. This included studying the laws strength. Vastu recognized long ago that the morning sun was of the cosmos, especially the stars. Cultures like China and India particularly beneficial for living things. That’s why sunlight from the have aimed to improve the quality of life by having people live in northeast and southeast is especially valued. Olivera Reuther, a harmony and balance with the forces of nature. For this reason, Berlin architectural engineer, who follows Vastu principles in her philosophies such as Feng Shui in China and Vastu in India have designs, agrees. “The rays of the morning sun should fall directly played an important role in architectural traditions, focusing as they on the house and the land it is built on. For this reason, one should do on the points of the compass and their effect on human health not build on the northeastern, eastern and southeastern areas of

and well-being. a site,” explains Reuther of how she uses the theory in practice. > Corbis Boisvieux, Christophe Photo:

Credit Suisse Bulletin 4/07 East Architecture 19

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Credit Suisse Bulletin 4/07 20 East Architecture

dwellings and cities should be aligned to the path of the sun and directions of the wind. But in secular architecture pragmatic con- siderations prevailed, such as the surrounding land, the needs of inhabitants or natural features; these were the kind of factors that influenced how buildings were constructed. The aim was to build in a way that was appropriate and health-promoting. For example, Vitruvius recommended that instead of building city walls in line with the hot or cold points of the compass, they should be aligned along the more moderate east-west axis, allowing favorable winds to blow through the streets and thus preventing damage to the houses. On the other hand, bedrooms and libraries should be lo- cated in the eastern part of buildings because, as he wrote, when in use they should enjoy the light of the morning sun. East was also considered an important direction in sacred archi- tecture such as altars and temples. “If there be nothing to prevent it, and the use of the edifice allow it, the temples of the immortal gods should have such an aspect, that the statue in the cell may have its face towards the west, so that those who enter to sacrifice, or to make offerings, may have their faces to the east as well as to the statue in the temple,” wrote Vitruvius. It was not only the Greeks and Romans who used this eastern orientation. Other cultures that Versailles This baroque palace outside Paris existed around the Mediterranean basin in the first millennium is an extremely impressive and consistent example B.C. used it as well. One of the most important elements in ancient of an east-facing design. A residence of the temples was that the altar should be aligned toward the east. The kings of France, it particularly bears the stamp of cult statue faced west, and the main entrance of the temple was Louis XIV, the legendary Sun King.The entire to the east, provided the site allowed for this. The word “orientation” chateau and its extensive gardens are oriented due is related to the word for “east,” coming from the Latin word “oriens,” east.Allthesymbolismwasdesignedtorepresent which means rising; the Greek word for east is “anatolae.” the Sun King as the new Apollo. Every morning, “For both Greeks and Romans, the east-west axis had a special exactly in the center of the chateau, an elaborate religious significance and reflected a specific understanding of ceremony attended by the entire court accom- panied the waking of the king, and a similar ceremony culture,” explains Christian Russenberger, an archaeologist at the washeldwhenhewenttobed.Thiswasaway University of Zurich. “It had its origins in their view of the world and of projecting the course of the day (something that civilization. The Greeks believed their culture came from the east, byitsverynaturecouldnotbecontrolled)onto which was to some extent true. They thought that some of their the sovereign. gods, for example Dionysus, had been imported to Greece from the east, although they were actually of genuine Greek origin. For them the east was the direction where culture had arisen and developed, but also a place with a favorable climate that led to softness and decadence. By contrast, the west, with its harsh climate, was con- sidered particularly uncivilized. Greece saw itself in the middle, in the most moderate and proper position.” “It’s a good thing for the main entrance of a house to face east. The Heavens Have Two Gates The windows on the eastern side should also be bigger and more numerous that in the other directions. Areas such as the bathroom Although Vitruvius wrote much about easterly orientation, the prin- and kitchen that should be kept particularly clean are best located ciple – and indeed religion itself – was not interpreted as dogmati- in the eastern or southeastern part of a building. It’s also a good cally as in Christian architecture, where it has always had important idea for your head to point east when you sleep, eat, cook or med- symbolic value. The early Christians faced east when they were itate.” Vastu is currently experiencing a revival in India, and interest baptized, whereas they faced west when making their vow to re- in the West is growing as well, especially in connection with Ayur- nounce all evil. The essential thing back then was that light coming veda. These ancient teachings are still perfectly preserved in build- from the doorway should enter the church from the east. Later, ings like the temple city of Madurais in southern India. however, the altar was considered to be the more important part of the church because the ritual of the mass was celebrated there. Of Oriens and Anatolae Therefore by the eighth or ninth century at the latest, Christians had Although only part of the Vedic scriptures have survived to this day, started to reorient their places of worship. The longitudinal axis now there is a comprehensive work on architecture from classical times. typically ran from west to east, so that the choir and the altar faced “Ten Books on Architecture,” written around 33 B.C. by Marcus east and the main entrance faced the west. In the modern liturgy, Vitruvius Pollio during the reign of Emperor Augustus, was a mile- the priest faces the congregation, but in the distant past he faced

stone for architectural theory in the West. Vitruvius, too, said that east. And even in funeral services held in churches and cemeteries, C.Sappa,Photos: DEA,Getty Images | Andia Paygnard, | Bednorz, Monheim Bildarchiv Achim

Credit Suisse Bulletin 4/07 East Architecture 21

Modern churches, too, have an eastern orientation: Le Corbusier’s Notre-Dame-du-Haut pilgrimage chapel. Set on a hill in Ronchamp, France, it is a place of pilgrimage for both religious believers and architects.

the head of the deceased was normally to the east. Because the This shows up in almost all his work, as well as in his writings on sun does not always come up at the same place on the horizon over architecture and urban planning,” Maurer explains. “One of his most the course of the year, some churches have even been oriented to memorable, oft-quoted formulas is ‘soleil, espace, verdure’ (sun, reflect where the sun will rise on a particular day. For the imposing space, greenery). In 1942 he even wrote that orientation toward Cathedral of St. Stephen in Vienna, for example, this was Decem- day and night should be the yardstick for all urban development.” ber 26, 1137, which is the day of the church’s patron saint in the The Path of the Sun Still Influences Modern Architecture year construction commenced. Lothar Schmitt, an architectural historian at the Federal Institute This argument of architecture oriented toward night and day actu- of Technology (ETH) Zurich, believes there is deeper explanation ally has its roots in the much derided 19th century. Toward the end for eastern orientation. “In medieval times churches were meant to of that century, architecture was picking up on the ideas of the reflect the structure of the heavens. Prophecies in both the Old and hygiene movement, which aimed to combat tuberculosis and other New Testament use the word ‘oriens’ as a name for the Messiah, serious diseases. Scientists had investigated the effects of the who is also called ‘sol iustitiae,’ the sun of righteousness. Accord- sun’s rays and shown that they had a positive impact on human ingly, the sun rising in the east was seen as a symbol of the resur- health. “These insights were to be incorporated in the way build- rected Christ,” explains Schmitt. “Isidore of Seville, an important ings were constructed and oriented,” explains Maurer. “Therefore author on the brink of the middle ages, wrote of heaven as having new ways of building emerged that were designed in line with health two gates, one in the east and one in the west, through which the requirements rather than simply looking impressive or serving as a light of the sun entered and departed. In the medieval world view, status symbol. An eastern orientation is always called for in build- paradise was thought to lie far to the east. Because Christians were ings that should not be exposed to excessive sun. This is for ex- striving for paradise, they would face that direction, according to ample the case today in designing schools, where the recommend- the theologian Honorius of Autun.” ed orientation is east-southeast. Or in residential housing, with new types of development such as ‘zeilenbau,’ where rows of hous- A Timeless Formula: “Soleil, Espace, Verdure” ing are aligned from north to south so that people get morning or Modern churches are still given an easterly orientation whenever evening sun or both.” possible. A famous example of this is the pilgrimage chapel in But what is the current view of easterly orientation in today’s Ronchamp designed by Le Corbusier. The French-Swiss architect, architecture? Maurer replies: “It’s true that today’s architecture who was born in 1887 in La Chaux-de-Fonds and is still considered is decisively influenced by new technological developments and one of the greatest modern architects, was a classic example of a standards, such as insulating glass and solar cells. Nevertheless, “sun worshipper.” Bruno Maurer, an architectural historian at the any intelligent architect will take into account the path of the sun ETH Zurich, describes him as a natural philosopher. “Le Corbusier when siting a building and laying out its rooms; having the bedroom was a great believer in the power of nature. That’s why the path of face east to catch the morning sun and the loggia west to enjoy the the sun, the sun itself and solar orientation are central to his work. sunset still makes sense even 2,000 years after Vitruvius.” <

Credit Suisse Bulletin 4/07 22 East Gavin Menzies

When the East Discovered the West Did China beat Columbus in putting the New World on the map? In his controversial book, “1421”, former submarine commander Gavin Menzies raises the theory that ancient &KLQHVHH[SORUHUVPD\KDYHEHHQƟUVWWRƟQGWKH$PHULFDV7KHDXWKRUH[SODLQVKLVRZQ H[WUDRUGLQDU\MRXUQH\RIGLVFRYHU\DQGZK\UHZULWLQJKLVWRU\LVQŒWDOZD\VSRSXODU

Text: Gavin Manzies

If someone had told me five years ago that my book “1421” would we asked our guide, “Why did the emperor inaugurate all these be on sale in 105 countries and that we would need a team of enormous projects at the same time on New Year’s Day 1421?” people to answer e-mails and letters which arrive from round the Answer: “Because they took 16 years to build.” world every day, I would have said they were mad. In early 2002 I Question: “Well, why did he decide to begin all this here in the did not even have a publisher despite trying for 10 years. harsh north, on the edge of Mongolia? Why didn’t he stay in the It might be of interest to summarize the events which led to this capital Nanjing in the fertile, warm south?” extraordinary situation. Marcella and I had decided to celebrate our Answer: “Because he wanted to live in the north.” silver wedding anniversary in 1990 by going to Beijing. We arrived Question: “But why did he need to leave the south?” on New Year’s Eve and went straight to the Great Wall at Badaling. Answer: “As I said, to come to the north. There will be no further Adrenalin surged through our blood gazing at the harsh, desolate questions about this matter.” Mongolia to the north, and the much more fertile China to the Having been silenced, I looked pained and the guide as a sop south. The Great Wall is the barrier between the two, snaking away added: “The emperor sent a huge fleet of ships all round the world over the hills – on that cold winter’s day like a snake covered with to bring kings and princes and emperors to Beijing for the inaugura- icing sugar. In the evening we went to see the Ming tombs and then tion of the Forbidden City – he had a huge fleet. His guests traveled down to the Forbidden City. We were told that the Badaling section in great comfort from their home countries to Beijing.” This was an of the Great Wall, the Ming tombs and the Forbidden City had all astonishing revelation as I had no idea that mediaeval China had a been inaugurated by the great Emperor Zhu Di on Chinese New navy, let alone one capable of bringing people halfway round the Year’s Day 1421. world for the inauguration. The performance in the Forbidden City that New Year’s Eve was On our return home I decided to see what was happening at that pure magic – fireworks, violet smoke in the clear cold sky, jugglers, same time in London and found February 1421 was a very important clowns belching orange fire from their mouths, Indian dancers, month in English history. The Hundred Years’ War had brought dragon processions – a wonderful, stimulating evening. As it ended France and England to their knees: Both were virtually bankrupt. >

Credit Suisse Bulletin 4/07 East Gavin Menzies 23

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Credit Suisse Bulletin 4/07 24 East Gavin Menzies

“IfIhadspentmylifewritingabouthowColumbusdiscovered $PHULFD,ZRXOGKDYHEHHQIXULRXVLIVRPHRXWVLGHUKDG found the chart Columbus used that showed him the way to WKH$PHULFDVŕGavin Menzies

England’s great warrior King, Henry V, planned to bring the Hundred My instinctive reaction was that the map came about from a secret Years’ War to an end by unifying France and Britain. He would do Portuguese voyage. I contacted the Portuguese ambassador in this by marrying the erotic young French Princess Katherine de London who kindly introduced me to the curator of the National Valois – their child would be king or queen of both France and Record Library, the Torre do Tombo in Lisbon. On a beautiful Octo- England, and hence there would be no rationale for continuing the ber day I began research there to find details of this secret voyage. Hundred Years’ War as the two countries would be united. However, to my astonishment I found quite the opposite – not only This plan had the backing of the French king. As part of the did the Portuguese know nothing of these islands, but in the year agreement, Katherine was to be crowned queen of England in 1431, Prince Henry the Navigator had sent caravels to find them. Westminster Abbey and a great feast would follow in Westminster Even more startling, the Portuguese claimed that in the year 1428 Hall – in February 1421, virtually the same time as the Forbidden the king of Portugal’s eldest son, Dom Pedro, had visited Venice City was being inaugurated. I could therefore compare the scale and brought back maps of the world which showed in the east a and extent of the festivities in London and Beijing that same month. way round Africa to China and in the west, the Americas and the In Beijing, the emperor put on a 10-course banquet for 26,000 “dragon’s tail” which today we call the Straits of Magellan. So here people. In London, the fare for 600 guests was salt cod, “stockfish”; was an astounding claim: The whole world had appeared on charts because the country was poor, there were not enough plates for which the Portuguese had brought back to Lisbon 70 years before everyone and stale bread had to serve instead. Columbus had sailed on his first great voyage of exploration to the This seemed to have the germ of an interesting story, so I decid- New World. ed to research what else was happening in Europe that same month, Real or Figments of the Imagination? February 1421. I rapidly found it was an extraordinarily eventful year. The holy Roman emperor was defeated by the Hussites at Kutna These world maps were last seen in the Monastery of Coimbra in Hora; the Renaissance had started; Joan of Arc had her First Com- the 1520s, so it was difficult to know whether in fact they had ex- munion; the emperor of Byzantium was surrounded by the Otto- isted or they were hearsay or figments of somebody’s imagination. mans; the Mamluk sultan, al Ashraf Barsbay, seized power in It seemed to me that if they were real, the kings of Portugal and Cairo, capital of the Islamic world, in December 1421 and decided Spain would have provided their caravel captains with excerpts of he would nationalize the spice trade. This brought international these maps to show them the way to the New World. So in Sep- commerce through Egypt to a halt. By the end of 1421, the spice tember 2001 with feverish excitement I started to look into the route through Egypt was severed as was the Silk Road through records of Columbus, Magellan, da Gama, Cabral, Dias and Captain Byzantium, hence Henry the Navigator’s attempts to find a new Cook to see whether they had acknowledged that they had maps way to the east. He did so by setting up a school at Sagres in showing them the way to the New World. southwest Portugal to train captains of his ships and cartographers. To my absolute amazement, within six weeks, by the end of European voyages of exploration had started. November 2001, I had found evidence that all the great European explorers had had maps showing them the way to the New World. 7KH

in length. As a result of this process, I came across the Pizzigano and Portugal on the other to read correspondence before they set Art Bridgeman LibraryThe Library Board, sh Chart published in 1424 which showed islands in the Caribbean. sail. I discovered that indeed Columbus had a map which was pro- I contacted the curator of the James Ford Bell Library which owned vided by an Italian called Paolo Toscanelli, and that before setting this map and corresponded over several months with the curator, sail Magellan had seen a map of the world which showed the Straits Emeritus Professor Carol Urness. By mid-2001 she was convinced of Magellan in the king of Portugal’s library. By December 2001 I by my analysis that the islands on the 1424 map were Puerto Rico found sufficient charts, as described in my book, “1421”, to say for and Guadalupe. This was an astonishing revelation, for clearly some- certain that the whole world had been mapped before European body must have been in the Caribbean nearly 70 years before voyages of exploration had started, although these charts were

Christopher Columbus accurately mapped the islands. separate, not on one complete world map. By the end of 2001 > Taipei Museum, Palace National Photos: | Briti

Credit Suisse Bulletin 4/07 East Gavin Menzies 25

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Credit Suisse Bulletin 4/07 26 East Gavin Menzies

I was sure all of the great European explorers had maps. I realized I had a heavyweight book on my hands. Transworld bought worldwide literary rights in March 2002 and the hardback version was published in November of that year. Trans- world subsequently sold rights around the world and the book “1421 – The Year China Discovered the World” has now been trans- lated into 30 languages.

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I have been asked what the reaction of historians has been; the honest answer is that I do not really know. I only read English, which accounts for a small proportion of the countries in which “1421” is on sale. There have been 22,000 mentions of criticism and praise in China alone. Long ago I gave up reading reviews. Understandably, some English-speaking historians have been very upset. If I had spent my life writing about how Columbus discovered America I would have been furious if some outsider had found the chart Columbus used that showed him the way to the Americas. Having made allowances for that, it surprises me how badly the critics have handled their opposition. If I had been in charge of marshalling opposition to “1421” I would Gavin Menzies ERUQ MRLQHGWKH5R\DO1DY\LQ have taken the line “Well it’s a very interesting book, but so what? DQGVHUYHGLQVXEPDULQHVIURPWR The Chinese did not have the guts to sustain their overseas settle- $VDMXQLRURIƟFHUKHVDLOHGWKHZRUOGLQWKHZDNHRI ments but the Europeans did. History was not affected. ‘1421’ is &ROXPEXV'LDV&DEUDODQG9DVFRGD*DPD:KHQ a sideshow.” The critics did not take this line but instead mounted in command of the +065 R U T X D O     ŏ    K H  sailed the routes pioneered by Magellan and Captain vitriolic personal attacks on me and anybody who supported &RRN6LQFHOHDYLQJWKH5R\DO1DY\KHKDVUHWXUQHG me. This had two consequences: firstly, it turned off the general to China and the Far East many times, and in the public who bought “1421” in cartloads to see what all the fuss was FRXUVHRIUHVHDUFKLQJŔŕKHKDVYLVLWHGFRXQ about. Secondly, many of my supporters were emeritus professors WULHVRYHUPXVHXPVDQGOLEUDULHVDQGHYHU\PDMRU who did not take kindly to being called frauds or to allegations of VHDSRUWRIWKHODWH0LGGOH$JHV being in my pocket. Some of them – who were much more distin- guished than some of the critics – mounted devastating counter- attacks. So the English-speaking critics ended up looking both ignorant and incompetent. As the Yorkshire saying goes, “There’s nowt so queer as folk.” <

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On March 8, 1421, the largest fleet the ZRUOGKDGHYHUVHHQVHWVDLOIURP&KLQD,WV mission was “to proceed all the way to the ends of the earth to collect tribute from the barbarians beyond the seas” and XQLWHWKHZKROHZRUOGLQ&RQIXFLDQKDUPRQ\ When it returned in October 1423, the HPSHURUKDGIDOOHQOHDYLQJ&KLQDLQSROLWLFDODQGHFRQRPLFFKDRV 7KHJUHDWVKLSVZHUHOHIWWRURWDWWKHLUPRRULQJVDQGWKHUHFRUGV RIWKHLUMRXUQH\VZHUHGHVWUR\HG/RVWLQ&KLQDŒVORQJVHOILPSRVHG isolation that followed was the knowledge that Chinese ships KDGUHDFKHG$PHULFD\HDUVEHIRUH&ROXPEXVDQGKDGFLUFXP QDYLJDWHGWKHJOREHDFHQWXU\EHIRUH0DJHOODQ$OVRFRQFHDOHG ZDVKRZWKH&KLQHVHFRORQL]HG$PHULFDEHIRUHWKH(XURSHDQVDQG WUDQVSODQWHGLQ$PHULFDDQGRWKHUFRXQWULHVWKHSULQFLSDOHFRQRPLF FURSVWKDWKDYHIHGDQGFORWKHGWKHZRUOG Photo: Thomas Photo: Eugster

Credit Suisse Bulletin 4/07 Credit Suisse Business 27 Credit Suisse Business

.XGRVIRU/DWLQ $PHULFD)UDQFKLVH )URP3XEOLFDWLRQV

Credit Suisse’s Latin America franchise was recently recognized by three of Wall Street’s most highly respected publica- tions: LatinFinance, Institutional Investor and Euromoney. In LatinFinance’s Invest- ment Banking Poll 2007, Credit Suisse won top honors in eight out of 11 categories, including Best Equity Underwriter, Best Debt Underwriter, Best Sales &Trading, Kai Nargolwala &OLHQWVLQ,VUDHO*DLQ Best Execution, Best Buyside Relation- ships, Best Long-Term Partner and Best Named New CEO for Access to Private Overall. The magazine polled 20 of the re- $VLD3DFLƟF5HJLRQ %DQNLQJ6HUYLFHV gion’s biggest users of the capital market DQGWKHƟYHODUJHVWLQYHVWPHQWPDQDJHUVLQ On January 1, 2008, Kai Nargolwala will Credit Suisse is now able to offer a range Latin America. “We culled a range of an- join Credit Suisse as Chief Executive Of- of its global and local products and ser- swers, demonstrating preferences for a host ficer of the Asia-Pacific region. “I am de- vices to clients in Israel, including equities, of banks with national and regional special- lighted to have been given this opportunity bonds, mutual funds, structured products ties,” noted the editors. “Credit Suisse took to contribute to the further success of and alternative investments. the prize in virtually all of the capital market Credit Suisse in the region,” says Nargol- Credit Suisse Financial Services(Israel) categories, appearing as the bank of choice wala, who has three decades of industry Ltd., a wholly owned subsidiary of Credit in equity underwriting, debt underwriting, experience in Europe, the US and Asia. Suisse, has recently been granted an In- sales and trading, and execution.” Nargolwala will succeed Paul Calello, who vestment Marketing License by the Israel Institutional Investor magazine published has been heading the region since 2002 Securities Authority. This license enables its 2007 Latin America Research Team rank- and has recently been appointed CEO of WKHVXEVLGLDU\WRSURYLGHƟQDQFLDOVHUYLFHV ings, and Credit Suisse was noted for its Credit Suisse’s Investment Banking divi- to private banking clients in Israel. strength in the region, having garnered a sion based in New York. The bank has been active in Israel for number two spot and with 14 of its research Credit Suisse CEO Brady W.Dougan more than a decade and through that expe- teams listed in the rankings. The magazine sees Nargolwala’s appointment as an rience has gained in-depth knowledge of based its survey on the responses of more important step for business in Asia: “We the local market. With the new operation, than 300 money managers and investment continue to see growth opportunities in Credit Suisse is now able to meet the professionals at over 200 institutions that $VLD3DFLƟFDQGZLWK.DLŒVDSSRLQWPHQW needs of Israeli clients, who are increas- collectively manage almost 129 billion dol- we expect to build on the considerable mo- ingly looking for local access to global ca- lars in Latin American equities. mentum that we have already established pabilities and solutions that are tailored to In Euromoney’s Awards for Excellence in the region.” Nargolwala has been a board their requirements. 2007, Credit Suisse collected the Best member of Standard Chartered since 1999, Muli Ravina, who was appointed CEO Investment Bank and Best Mergers and covering the bank’s mergers and acquisi- of the new entity, will be responsible for Acquisitions (M&A) House in Latin Ameri- tions and its governance in Asia. Prior to building the bank’s operations in the coun- ca, as well as a number of country awards. that, he worked for Bank of America for 19 try. Ravina joins Credit Suisse from Ericom Credit Suisse was recognized for “sus- years. He is looking forward to his new role Software where, in his role as president and tained excellence across all products.” at Credit Suisse: “Together with an excel- FKLHIRSHUDWLQJRIƟFHUKHZDVUHVSRQVLEOH Euromoney also noted that Credit Suisse’s lent team, I will be focused on further lever- for the company’s global operations. He equity business executed 23 IPOs, includ- aging the bank’s strong global capabilities also has more than 20 years of experience ing landmark offerings for Santos Brasil, DFURVVWKHIUDQFKLVHLQ$VLD3DFLƟFŕ jbo in the Israeli market. mb BrasilAgro and GP Investmentos. sl Photos: Credit Suisse Credit Photos: |Corbis T.Nowitz, Richard

Credit Suisse Bulletin 4/07 E-mail Phone Pzc/place Street First name Name MY SAUNAANDSPA AUTHORITY AND SERVICE AUTHORITY AND FROM THE MARKTLEADER. FROM THE Berne, BrigVS,ChurGR,ClarensVD, baar Whirlpool All aboutSteamBaths Sauna/Sanarium Klafs SaunabauAG More informationsyouwill find in our free 200 lateral find inourfree200 Oberneuhofstrasse 11 Phone 0417602242 DESIGN, QUALITY, Fax 0417602535 @ overview catalog. CH-6342 Baar klafs.ch, www.klafs.ch Further officesin: Dietlikon ZH. ilm nGoa iac riigprogram, inDiploma Finance Global training Suisse, on-the-job training, project manage- Suisse, on-the-job Credit complemented by a study module at agement and leadership skills. These are ƟQDQFLDOVHUYLFHVDQGSURGXFWVDQGPDQ VLW\EDQNLQJLQWKHJOREDOƟQDQFLDOV\VWHP threepants modules at complete the univer- of Credit Suisse managers. WKHƟQDQFLDOLQGXVWU\WRWKHQH[WJHQHUDWLRQ from expertise on Kong. topass is aim Its ship with the Chinese Universityof Hong which Credit Suisse has set up in partner- COO 12, O’Shea, October Eoin On Asia: in off The Credit integrated Suisse bank is taking Interaction Through Learn Young Managers from every area of the bank.” the of area every from sharing and networking between colleagues region. “We want to encourage knowledge Pacific Asia School head of the Business competitors,” our from Doerr, Patsy said ongoing development and differentiate us this unique program designed to support tooffer ed. able tobe proud very are “We specialistsupporting vate Banking, Asset Management and the program, in which Investment Pri- Banking, Australia and Korea will take in the part pilot ees from Singapore, Hong Kong, Japan, employ- region. the for Thirty-six issue tegic astra- on focused project agroup and ment $VLD3DFLƟF During the program, 15-month partici $VLD3DFLƟFODXQFKHGWKH3URIHVVLRQDO areas are represent- nb - - Middle East Euros and Swiss francs. price return and total return index in dollars, August and is calculated as a synthetic panies, is rebalanced every February and sions.”The index, which com- comprises 40 themes related to reducing emis- carbon is a basket of stocks that plays across the issue. new solution this for One portfolios Suisse. debate“The is how best to position chief Strategist Global Equity at Credit explains Andrew Garthwaite, to address,” that governments are only now beginning lieves that global warming is a critical issue fuels. everyone“Nearly we speak with be- tion, emissions limitation and renewable example, energy consump- more efficient nies involved in demand management, for issues, tal sustainability mainly in compa- ment created opportunities by environmen- researchequity and and carbon controlling stocks chosen by its to investpossibility in renewable energy a Warming Global index, which the offers tors into account, Credit Suisse launched native energy capacities. Taking these fac- production and in the development of alter- to investments in secure water supply, food quences and prevention of it will give rise issue in politics and science. The conse- arecognized become has warming Global Sustainable InvestingSustainable Created for WarmingGlobal Index 7KHWHDPVKDYHLGHQWLƟHGNH\LQYHVW HOLT mb teams. teams. -

Photos: Picture Net, Corbis | DUC, A1 PIX Credit Suisse Business 29

World Future Energy Summit A Meeting of Minds Experts of Alternative Energy Technologies to Converge in Abu Dhabi

Text: Michèle Bodmer

7KHƟUVWSURMHFWDVDUHVXOWRIWKH0DVGDU In 2008, Abu Dhabi will set the stage for the latest developments in future Initiative is a zero-carbon and zero- energy solutions with the World Future Energy Summit (WFES 7KLVLVWKHƟUVW waste community. Masterplanned by international forum for this growing sector where key industry leaders will Foster + Partners, the initiative is driven gather to discuss the issues and developments of sustainable and alternative by ADFEC. energies and technologies.

The WFES, running from January 21 to 23 Other notable speakers include government bon, zero-waste city. (See page 14 for the at the Abu Dhabi Exhibition Centre, will ministers and representatives from ener- full story on the Masdar City.) feature a 14,000-square-meter exhibition, gy companies including Mohammad bin “Masdar is leading the way in the de- which is expected to attract some 10,000 Dha’en Al Hamli, minister of energy, United velopment and commercialization of ad- visitors from around the world. The exhibi- Arab Emirates (UAE); Vivienne Cox, group vanced and innovative technologies in tion will showcase the present and future executive vice president, Gas and Power, renewable, alternative and sustainable state of alternative technologies and pro- BP; Graeme Sweeney, executive vice pres- energies,” explains Michael Philipp, CEO vide visitors with the rare opportunity to ident, Shell International Renewables; and of Credit Suisse in Europe, the Middle East speak with the people and companies be- Dr Mohammed Saeed Al Kindi, minister of and Africa. “The conference will provide a hind the new products and ideas aimed at environment and water, UAE. Lord Norman unique opportunity to explore the future of saving the planet. Credit Suisse is the prin- Foster, designer of the Masdar City, will be the global energy industry, including alter- cipal sponsor of the WFES and also of the the keynote speaker at the conference. He native energy in the Middle East. < exhibit “Credit Suisse Innovation Zone,” will provide insight on sustainable architec- which will highlight technology that will be- ture of the future, and offer a glimpse into For more information on WFES come part of daily life as pressure increas- WKHZRUOGŒVƟUVWDWWHPSWWREXLOGD]HURFDU- visit www.wfes08.com es to create sustainable living environments. “Credit Suisse’s decision to take such a prominent profile at the WFES demon- More About the Masdar Initiative strates the high level of interest we are get- Last year, Abu Dhabi made a historic decision to embrace renewable and sustainable ting from international investors in the proj- energy technologies by launching the Masdar Initiative, a project launched with the backing ects we are developing here in Abu Dhabi,” of the Abu Dhabi Future Energy Company (ADFEC), which has been mandated to explains Sultan Ahmed Al Jaber, CEO of Masdar, which is organizing the summit. drive Masdar, champion the adoption of advanced energy technologies, and contribute to Alongside the exhibit is a conference the diversification and sustainable growth of the Abu Dhabi economy. Also in 2006,

which will feature 150 of the world’s fore- as part of the government’s initiative, Credit Suisse, ADFEC and other partners launched most specialists of future energies, includ- the 250-million-dollar Masdar Clean Tech Fund (www.masdarctf.com), which invests in ing Jonathon Porritt, the UK’s leading ex- pert on sustainable development and past clean energy and sustainable technologies, thus contributing to the economic diversification

Photo: Nigel Young, Foster Young, + Nigel Photo: Partners advisor to former Prime Minister Tony Blair. of the Gulf region.

Credit Suisse Bulletin 4/07 30 Credit Suisse Business

Credit Suisse Finance Division ,QWHUYLHZZLWK&KLHI)LQDQFLDO2IƟFHU5HQDWR)DVVELQG “It is vital always to innovate boldly and to venture into new territory”

Interview: Marcus Balogh

The initial success of the One Bank Strategy makes it tempting to believe that And how significant are these issues Credit Suisse has already reached most of the initiative’s goals. But we haven’t, for the Finance division? QRWE\DORQJVKRWVD\V5HQDWR)DVVELQG&UHGLW6XLVVHŒV&KLHI)LQDQFLDO2IƟFHU 6WUDWHJ\ LPSOHPHQWDWLRQ DQG WKH EDQNŒV growth are crucial to all areas, hence also IRUWKH)LQDQFHGLYLVLRQ2QHH[DPSOHLV Bulletin: Can you sum up in a few DUHYRODWLOHWKLVWDVNEHFRPHVH[FHSWLRQ- “client centricity.” By this we mean gearing sentences for Bulletin readers what DOO\FRPSOH[DQGWLPHFRQVXPLQJ our business to the needs of our clients and your division actually does? Does market turmoil make your job QRWWRVHOOLQJLQGLYLGXDOSURGXFWV,WLQYROYHV Renato Fassbind: Sooner or later, all the more fascinating? PDNLQJWKHEDQNPRUHUHVSRQVLYHWRFOLHQW facts and figures have to be turned into It certainly can make things more hectic, but QHHGV$QGLWLPSOLHVWKDWZHKDYHWRLP- financial data. Whether the information ,ZRXOGQŒWVD\LWPDNHVP\MREPRUHIDVFL- SURYHRXUPDQDJHPHQWLQIRUPDWLRQV\V- comes from Private Banking, Investment nating. I highly value being able to make a tems, among others. Here we have to look Banking or Asset Management, it all comes YHU\UHDOFRQWULEXWLRQWRWKHEDQNŒVIXWXUH DWWUDQVSDUHQWDOORFDWLRQRIFRVWVLQWKH together in our division. We always work on DVDPHPEHURILWV([HFXWLYH%RDUG$Q- regions and countries, and for our central ƟQDQFLDOGDWDIURPRSHUDWLRQDODFWLYLW\DQG RWKHULQWHUHVWLQJIHDWXUHLVWKDWDOOFRPSDQ\ VHUYLFHV7KHVHV\VWHPVDUHGHVLJQHGWR QHYHUSURGXFHƟJXUHVIRUƟJXUHVŒVDNH(V- information comes together in our division. KHOSXVHQVXUHWKDWZHRIIHURXUFOLHQWVWKH VHQWLDOO\ZHFUHDWHDSLFWXUHRIWKHFRPSDQ\ 2XUGLYLVLRQŒVZRUNLVLQWHUZRYHQZLWKDOO EHVWSRVVLEOHVHUYLFHZKLOHGHSOR\LQJRXU WKDWLVXSGDWHGGDLO\7KLVWKHQVHUYHVDVDQ areas of the bank, so there are very few UHVRXUFHVDVHIƟFLHQWO\DVSRVVLEOH information basis for our business activity. PDMRUHYHQWVWKDWZRQŒWHQGXSRQP\GHVN What other issues are important? 7KDWSLFWXUHLVDOVRLPSRUWDQWWRILQDQFLDO DWVRPHSRLQWIRUDVVHVVPHQW:HDFWDVD Second is the harmonization of our ,7 sys- regulators such as the Swiss Federal Bank- ŔVZLWFKSRLQWŕŏDQLQIRUPDWLRQQHUYHFHQWHU tems. We have too many systems that can- ing Commission, the 6(& in the US and the ,VHHWKHELJJHUSLFWXUHŏWKDWŒVWKHDWWUDF- not yet communicate with one another. Cost FSA in the United Kingdom. WLRQRIP\MRE WUDQVSDUHQF\LVQRWRXURQO\FRQFHUQKHUH For a while now the financial Your job makes you an important :HDUHORRNLQJIRUWKHSRWHQWLDOWRFXWFRVWV markets have been subject to great port of call for investors. What interests E\PRUHHIƟFLHQWV\VWHPV7KHWKLUGLVVXH volatility. How does this influence them the most? LVWKHRQJRLQJLPSURYHPHQWRIRXUSHUIRU- your division’s work? ,QYHVWRUVZKRKDYHPDMRUVWDNHVLQ&UHGLW mance and remuneration measurements – Some areas of the Finance division are 6XLVVHZDQWWRNQRZZKDWVWUDWHJLHVZHŒUH how we measure the success of our staff VWURQJO\LQƠXHQFHGE\PDUNHWYRODWLOLW\7DNH SXUVXLQJZKHUHZHVWDQGWRGD\DQGZKHUH and offer them due reward. We are stan- 3URGXFW&RQWUROWKHDUHDUHVSRQVLEOHIRU ZHŒUHKHDGLQJ7KHPDLQLVVXHVDWWKHPR- dardizing some of these criteria bankwide. YDOLGDWLQJWKHYDOXDWLRQRIWKHEDQNŒVSRVL- PHQWDUHWKHLQWHJUDWHGEDQNRXUH[SDQ Talking of the bank’s development WLRQVLQILQDQFLDOLQVWUXPHQWV7KHVHYDOX- sion in different regions and growth in the as a whole, what are the next main steps ations must be based on the “fair value” individual divisions. But these discussions on the way to an integrated bank? SULQFLSOH,QRWKHUZRUGV:HKDYHWRYDOXH are less about my view as CFO, and more We have a clear strategy and have been certain investments – or our assets and li- DERXWP\UROHDVDPHPEHURIWKH([HFXWLYH LPSOHPHQWLQJLWIRUVRPHPRQWKVQRZ abilities – at market value. When markets Board. )URPWKHVWDUWZHŒYHDOZD\VVDLGLWZRXOG

Credit Suisse Bulletin 4/07 Credit Suisse Business 31

WDNHWKUHHWRILYH\HDUVWRFRPSOHWHWKLV SURFHVV6RWKHUHDUHQRPDMRUQHZVWHSV :HMXVWKDYHWRVWLFNWRWKHSDWKZHKDYH PDSSHGRXW What’s the greatest difficulty you envisage in this respect? *LYHQRXULQLWLDOVXFFHVVLWZRXOGEHWHPSW- ing to believe that we have already reached RXUJRDO:HKDYHQŒWQRWE\DORQJVKRW,I we are to continue transforming Credit Suisse into a globally integrated bank at the VDPHSDFHHYHU\RQHLQKRXVHDQGRXW- side, has to realize that we have a long way WRJRWRH[SORLWRXUSRWHQWLDOWRWKHIXOO Is it possible to say what percentage of this journey is now complete? (Laughs) Many investors ask the same question. But this is not something that can EHSUHFLVHO\TXDQWLƟHG,WKLQN\RXŒOOKDYH to settle for the fact that we have a three- WRILYH\HDUSODQDQGDUHRQO\DERXW PRQWKVLQWRWKDWSODQ%XWZHPXVWNHHS reminding ourselves and investors that – JLYHQWKHG\QDPLFVRIWKHFDSLWDOPDUNHWV LQRXULQGXVWU\ŏLWŒVYLWDODOZD\VWRLQQRYDWH boldly, to venture into new territory and to FUHDWHFRPSHWLWLYHDGYDQWDJHIRURXUFOLHQWV 5HQDWR)DVVELQGLVDPHPEHURIWKH([HFXWLYH%RDUGDQG&KDLUPDQ of the Credit Suisse Foundation. DQGVKDUHKROGHUVDOLNH6RWKHMRXUQH\KDV no end: we are innovative and have to de- YHORSIXUWKHU As a bank, do we still have to grow through acquisitions, or do we have everything on board to achieve our goals? We already have the critical mass we need WRRIIHURXUFOLHQWVFRPSUHKHQVLYHVROX- WLRQV6RWKHUHLVQRQHHGIRUPDMRUWDNH- RYHUV7KDWVDLGZHZLOORIFRXUVHFRQWLQXH WRSXUVXHDSROLF\RIVHOHFWLYHJHRJUDSKLFDO H[SDQVLRQLQFHUWDLQUHJLRQV:HDWWDFK JUHDWLPSRUWDQFHWRVHOIJHQHUDWHGJURZWK which is why we are committed to recruiting Profile DQGGHYHORSLQJWDOHQWHGHPSOR\HHVŏLQDOO 5HQDWR)DVVELQGLVWKH&KLHI)LQDQFLDO2IILFHURIWKH&UHGLW6XLVVH*URXSDQGRI&UHGLW DUHDV(TXDOO\LPSRUWDQWWRXVRQWKH([- Suisse, based in Zurich. As CFO5HQDWR)DVVELQGDQGKLVWHDPDUHUHVSRQVLEOHIRU ecutive Board is the question of how to developing and maintaining the finance organization, whose mission is to protect and make Credit Suisse one of the most attrac- WLYHHPSOR\HUV2XUHPSKDVLVLVRQƟUVW enhance shareholder value. It does this by guarding the bank’s financial franchise, class training – ideally involving second- delivering reliable and transparent information to stakeholders and optimizing the use of ments to all business areas – and career

Photo: Katharina Lütscher Katharina Photo: financial resources. RSSRUWXQLWLHVDURXQGWKHJOREH

Credit Suisse Bulletin 4/07 32 Credit Suisse Business

A Commitment to the Swiss Market The Best Bank in Switzerland – According to Euromoney

Text: Andreas Schiendorfer

“Our goal is to be Switzerland’s leading bank in terms of customer satisfaction (YHQPRUHVLJQLƟFDQWWKDQWKHVHH[WHUQDO and earnings growth,” Ulrich Körner, CEO Credit Suisse Switzerland, told at visible signs of revitalization has been the a well-attended media lunch at the end of August. He also used the occasion internal change in Credit Suisse since the WRUHYHDOVRPHUHPDUNDEOHƟJXUHV beginning of 2006: Under the motto “One Bank” or “integrated bank,” Credit Suisse developed an overall strategy for the Swiss Credit Suisse Villars, in western Switzer- shopping center development in Heerbrugg market embracing all divisions and seg- land, opened its doors on September 26, in the same canton in the fall. ments, and moved swiftly to optimize coop- 2005. This did not make much of a splash eration between the bank’s units. outside the region, yet it was in its own way Thirty Percent of Group Net Income Another objective was to ensure that DKLVWRULFHYHQW)RUWKHƟUVWWLPHLQ\HDUV Parallel to this expansion, in the past three &UHGLW6XLVVH6ZLW]HUODQGEHQHƟWHGEHWWHU Credit Suisse had opened a new branch in years some 30 branches have undergone from the bank’s global opportunities. In Switzerland. customer-friendly refurbishment – featur- concrete terms, Credit Suisse would like to Fast-forward to 2007. The next new ing a uniform interior design as part of the expand its strong market position in Switzer- branch followed in the Zurich Sihlcity shop- “Branch Excellence” project. The project land, while at the same time increasing its ping center on March 22 of this year. An- was launched in Bülach, Zurich, in 2005. focus on the promising growth markets in other two branches are scheduled to open The most recent branches to be modernized Asia and Eastern Europe. in the canton of St.Gallen in the coming and upgraded include Vésenaz, Carouge, Ulrich Körner, CEO Credit Suisse Swit- year: in the AFG Arena, a sports stadium in Martigny, Lucerne, Basel and the Swiss zerland, announced a positive verdict: “20 St.Gallen, early in 2008, and in the new capital of Berne. months after the launch of the integrated

Ulrich Körner, CEORI&UHGLW6XLVVH6ZLW]HUODQGZKRVHRIƟFHLVDWWKH3DUDGHSODW]LQ=XULFK SLFWXUHGDERYH EHOLHYHVWKHUHJLRQKDV

EHQHƟWHGIURPWKHEDQNŒVJOREDORSSRUWXQLWLHV Suisse Credit Photos:

Credit Suisse Bulletin 4/07 design made in germany

is number two in asset management and private banking, as well as among corporate clients, and number three among private clients. At the same time, he confirmed Credit Suisse’s ambitious goals in Switzer- land. These go well beyond purely quanti- tative targets: “We want to be the leading bank in terms of customer satisfaction and earnings growth. Our activities reflect the following three core values. The client’s needs are always at the center of our efforts. Teamwork is the basis of our business. A solid reputation is crucial.” Credit Suisse is making its branches more customer-friendly. The refurbished branch in =HUPDWWWKH0DWWHUKRUQFLW\LVVKRZQKHUH Customer Satisfaction Continues Credit Suisse seeks to enhance customer satisfaction by optimizing the structure of its consulting processes so as to focus con- business model, Switzerland is one of the sistently on the different phases in each major pillars of the integrated bank,” and client’s life. Internal analyses indicate that provided a range of interesting facts and this strategy has already resulted in some background information for the strong show- remarkable successes. ing of media representatives. He empha- Various awards, in which clients’ opin- sized that the Swiss market, with a payroll LRQVSOD\HGDGHFLVLYHUROHFRQƟUPWKDW of some 20,000, still contributes about Credit Suisse is on the right path. For in- 30 percent of the bank’s net income. Credit stance, the UK journal Euromoney rated 6XLVVHDOVRRIIHUVDWRWDORIWUDLQHH- Credit Suisse as the “Best Bank in Switzer- ships for apprentices and graduates of sec- land 2007” and, repeating earlier acco- ondary schools and colleges. lades, once again named it the Best Private Modus Executive 284/81 Bank and Best Investment Bank in Switzer- 2.1 Billion Francs in Purchases land; Credit Suisse also received similar 1RIHZHUWKDQSURYLGHUVPRVWRI awards for various other countries and them SMEVEHQHƟWGLUHFWO\IURPWKHSXU- regions, such as Best Investment Bank in chases of Credit Suisse, which spends North America and in Latin America. At the ELOOLRQ6ZLVVIUDQFVD\HDULQ6ZLW]HU- same time, Global Finance Magazine, a US land alone on goods, services and licens- publication, views Credit Suisse’s corpo- No compromising. es. Taxes are also an important consider- rate banking as exemplary: In New York in Your back can’t bear ation: “Credit Suisse and its employees pay October, Credit Suisse was voted the “Best compromises – nor can our ELOOLRQ6ZLVVIUDQFVLQFRUSRUDWHDQG Trade Finance Bank in Switzerland” for the quality standards. income taxes in Switzerland annually,” com- seventh year in a row. < ments Körner. “This does not include indi- vidual wealth taxes and indirect taxes.” In other words, Credit Suisse alone accounts for over 2 percent of Switzerland’s total tax revenues, and the financial sector as a Credit Suisse Switzerland Facts www.wilkhahn.com ZKROHDVPXFKDVSHUFHQW > The region generates about 30 percent of the bank’s net income. Turning to the bank’s strong position in > It has more than 20,000 employees. Switzerland, Körner pointed out that in the > It offers 1,150 traineeships for apprentices Swiss market Credit Suisse is the undis- and graduates of secondary schools and puted market leader in investment banking, colleges. 34 Credit Suisse Business

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Credit Suisse Bulletin 4/07 Credit Suisse Commitment 35 Credit Suisse Commitment

Credit Suisse Opens 20th School in China

Since 1999, Credit Suisse has helped im- prove educational opportunities for chil- dren in remote areas of rural China. Work- ing with humanitarian organizations includ- ing Oxfam Hong Kong, the Hong Kong Christian Council and Caritas Hong Kong, Credit Suisse has been active in the con- struction or renovation of primary schools. As a result, more than 5,500 pupils in the Chinese provinces of Hebei, Shaanxi, Guangxi, Kunming, Guizhou, Xinjiang, Hu- Kids Day at Credit Suisse Opens QDQDQG-LDQJ[LKDYHEHQHƟWWHGIURPQHZ or improved school facilities. New Horizons for Youngsters Credit Suisse recently opened its 20th school in China. Patrick Kerrigan, regional On November 8, 2007, the daughters and sons of Credit Suisse employees will have the Credit Suisse head of Human Resources chance to learn firsthand just what their mothers and fathers do at work. The children, DQGDPHPEHURIWKH$VLD3DFLƟF3KLODQ- aged between 10 and 16, will have the opportunity to accompany their parents to work to thropic Committee, visited the school to- VHHZKDWWKH\GRDQGDOVRJDLQYDOXDEOHLQVLJKWLQWRZKDWWKHPRGHUQRIƟFHORRNVOLNHDQG gether with Tom Grimmer, an advisor to how it operates. Credit Suisse on China philanthropic proj- The Credit Suisse Kids Day, which is open to girls and boys, is organized as a part of ects. The two traveled to the village of Shid- the Swiss National Daughters’ Day initiative which aims to arouse girls’ curiosity in a wide ian, located in Baoshan Country of Kunming range of professions. This is a project led by the equality specialist units in various cantons, province, in southwest China. DQGLVVXSSRUWHGE\WKH6ZLVV)HGHUDO2IƟFHIRU3URIHVVLRQDO(GXFDWLRQDQG7HFKQRORJ\ Seeing the new school proved to be a ( BBT DQGWKH6ZLVV&RQIHUHQFHRI*HQGHU(TXDOLW\'HOHJDWHV%DVHGRQRQJRLQJLQ- moving experience for Kerrigan. “We were equalities in perceived and actual career prospects in Switzerland, the Daughters’ Day delighted to see how many children can be initiative was launched to encourage girls to dispel the preconceptions that exist with provided with an education with relatively regard to career choices, and to develop career ideas early on. As Credit Suisse promotes little money,” he said of the trip. “And we equal opportunities for both sexes, it has opened the day to girls and boys for the third were deeply touched by the hospitality year. Kid’s Day is designed to inspire discussion about the career ideas that young shown to us by everyone and how they, people have, and encourages them to look more closely at their roles in society. This year, despite dealing with great poverty, shared participants can try out the online “security4kids” computer program sponsored by

Photos: Barry Lewis, Corbis | Credit Suisse everything with us.” mar Credit Suisse. This program points out the potential dangers of the Internet. mb

Credit Suisse Bulletin 4/07 36 Credit Suisse Commitment

Museum of Fine Arts Bern Contemporary Indian Art Exhibit India’s Wonderland of Contemporary Art at the Museum of Fine Arts Bern

Text: Patti M.Marxsen, Culture Journalist

Ŕ+RUQ3OHDVHŕLVDIDPLOLDUVD\LQJWRDQ\RQHWKUHDGLQJWKURXJKPLGGD\WUDIƟFLQ viewer to engage as an active participant ,QGLDŒVELJFLWLHV:LWKFRXUWHV\DQGLQVLVWHQFHLWLQYLWHVDŔKRQNŕLI\RXZLVK “within the context of his or her own narra- WRDYRLGFROOLVLRQŔ+RUQ3OHDVH1DUUDWLYHVLQ&RQWHPSRUDU\,QGLDQ$UWŕLVDQRWKHU tive cosmos.” LQYLWDWLRQ:LWKLWWKHPXVHXPH[SORUHV,QGLDQLGHQWLW\LQDJOREDOVRFLHW\ In an effort to help viewers navigate the territory, four formal divisions were se- lected: Narrating Collisions, Reimagining If the chaos, risk and opportunity of global- that matter(s) to tell the stories that must be Place for People, Retelling Stories/Telling ization can be understood through the lens seen and heard. Metaphor, and Living in Alicetime. Unfor- of any one nation, surely that nation is India. tunately, these divisions tend to be swal- With a population of over 1 billion, six ma- In the Eyes of the Beholder lowed by the variety of objects and the jor religions, 22 officially recognized lan- Like voices emerging out of a crowd, the art distinctiveness of individual artists. In guages (in addition to English and Hindi), itself runs the gamut from decorative to the Museum of Fine Arts’ effort to avoid and the third-largest economy in the world, documentary, from humorous to enigmatic, a “traffic jam” of styles, themes and ap- India is a kaleidoscope in motion. Or, as from overpopulated street scenes to con- proaches, a more effective strategy is the Bernard Fibicher might say, India is a world templative rooms. It is no surprise that an organization of individual artists into sepa- of multiple narratives evolving out of a cul- edge of social and political criticism is rate galleries. Each gallery allocates space ture in which storytelling has always been woven into exaggerated images of con- to one artist, and viewers are thus free to essential to understanding and self-under- sumerism, such as the plastic face of an move at their own pace. standing. Fibicher, with cocurator Suman American Barbie doll overlaid with an Indian Vasudha Thozhur’s autobiographical Gopinath, is the force behind the museum’s woman’s face. Verbal and visual quotes work entitled “Four Ways of Reconstructing autumn blockbuster, “Horn Please: Narra- from European art appear too, such as lines Pain or Reconstructing Cybermaps for the tives in Contemporary Indian Art.” of Paul Eluard’s poetry or the signature Old Economy” consists of collages made of It is an ambitious exhibition with images of Albrecht Dürer. There are theatrical in- reassembled digital images from her paint- of colliding cars and cultures as central stallations and mountains invented with ings, writings and readings of newspapers. metaphors. It charges ahead from gallery hallucinogenic energy as well as realistic Crafted into four richly colored panels re- to gallery, as overloaded trucks must ac- photography whose beauty lies in the un- sembling Tibetan carpets, she juxtaposes celerate to get through crowded intersec- masking of what was once beautiful, but is this visual world with listening posts, com- tions. If it falls short, it is only in the effort to no more. plete with headsets, CDs and Plexiglas define “Indianness.” For if the 32 artists Insofar as each artist narrates some ver- chairs where her voice can be heard read- included in this exhibit are to be believed, sion of India’s truth, the meaning of the work ing from her diaries. “I’m looking for a form “Indianness” is “everythingness,” including is not always easy to read. Nor is that the of communication where all the senses are the magical past of oral tradition and the intention. “By emphasizing the narrative used,” she says. often barren landscape of the present. More quality of this art, we’re suggesting that the Elsewhere, Dayanita Singh’s black-and- important is the curators’ implied sugges- viewer’s task is the work of interpretation,” white photo essay entitled “Go Away Clos- tion that contemporary artists are in a says Fibicher. In his view, narrative art is er” creates a quiet elegance with small unique position to articulate the meaning(s) essentially “unfinished” and calls on the images of primarily uninhabited spaces. In

Credit Suisse Bulletin 4/07 Credit Suisse Commitment 37

history. One of her paintings incorporates a powerful prose poem about the Indian Army’s indifference to the suffering in Kash- mir. This is as much a document as a work of art, as ancient scrolls often were. The influences of western art – from romanticism and realism to Dada – are evi- dent throughout the exhibit. In the hands of Indian artists, these movements are re- invented into something decidedly non- western. For example, Jyothi Basu’s magical mountains echo the scale of 19th-century European landscape painting as well as elements of outsider art. They also evoke the ancient tradition of miniature painting. The result is a place described as “inter- galactic and subatomic” by art dealer Peter Nagy. Nalini Malani’s reverse paintings on glass take up the ever so British “Alice in Wonderland” motif suggested by “Alice Time,” one of the organizational frameworks for the show. Her “Balancing Act III” shows a young girl getting steady on her feet, sur- rounded by friendly but strange birds and monsters. If there is a thread of continuity in this exhibit, it is well represented by

7RSOHIWŔ)LVKHUPHQLQ*RDŕE\%KXSHQ.KDNKDU%RWWRPOHIWŔ/RRNLQJIRU/D\ODŕ this image of a young girl, a symbolic young ŏIURPWKH0DSSPXQGL6XLWH5LJKWŔ)LUGDXV9ŕE\1LOLPD6KHLNK ,QGLDƟQGLQJKHUEDODQFHLQDZRUOGRIFRO- orful surprises and peculiar dislocations. There are many things to celebrate in these pictures, Fibicher notes, “All narrative something to happen. There is a documen- this exhibit, starting with the sheer exuber- is suspended.” Related to the pleasing emp- tary quality to this convergence of “stories,” ance of the work and the inclusion of many tiness of Singh’s photographs, at least in but it is up to the viewer to imagine the rela- women artists. Also, for the Museum of spirit, are the paintings of Sudhir Patward- tionships depicted and the meaning of their Fine Arts Bern, “Horn Please” stakes out han in which one or two people – usually movements, just as one might sit in a café important territory – with the 2005 exhibit older people – share the solitude of small and watch two people talking, wondering “Mahjong: Contemporary Chinese Art from rooms with a few carefully selected objects. what has brought them together. the Sigg Collection” – as an international In these pictures, the eye travels to the museum committed to exploring contempo- ever-present open windows that empha- Finding Beauty in Bitter Reality rary work from non-western cultures. With size the inside/outside nature of the artist’s No such poetic leisure is allowed by Ravi this exciting show now open on the Hodler- SHUVSHFWLYH7KHUHLVVRPHWKLQJƠDWLQWKH Agarwal’s intentional documentation of how strasse in Bern, new stories are waiting to color and the mood, a question posed that development has destroyed the Ramuna be told. < remains deliberately unanswered. River in his photos here entitled “Alien Wa- Equally evocative is Ranbir Kaleka’s ters 2004–2007.” Nilima Sheikh also ex- “Crossings: Two Stories,” a complex video tracts beauty from horror with her wall-size project encompassing four channels of scrolls called Firdaus (meaning Paradise) +RUQ3OHDVH synchronized video projected onto painted that incorporate delicate stenciling over 1DUUDWLYHVLQ&RQWHPSRUDU\,QGLDQ$UW 6HSWHPEHUŏ-DQXDU\ panels/screens. Figures sit together, one fields of red and gold paint. Her work is 0XVHXPRI)LQH$UWV%HUQ6ZLW]HUODQG rises, another turns to speak. Something is about the troubled history of Kashmir where LQIR#NXQVWPXVHXPEHUQFK

Photos: Gallery Bombay Chemould, Photos: | Sheikh Gulamohammed |happening, Sheikh Nilima or perhaps they are waiting for she grew up, thus it is about memory and ZZZNXQVWPXVHXPEHUQFK

Credit Suisse Bulletin 4/07 38 Credit Suisse Commitment

Employee Volunteering Bella Berns’ Story Enduro Challenge 2007: Credit Suisse Team and Whizz-Kids Charity Come Out on Top

Text: Michèle Bodmer

When Bella Berns signed on at Credit Suisse EMEA as head of philanthropy, +DYLQJVDLG\HV%HUQVLPPHGLDWHO\EHJDQ she expected to work with charity groups and coordinate employee volunteering KRQLQJKHUVZLPPLQJUXQQLQJDQGF\FOLQJ efforts. What she hadn’t anticipated, just six months after starting, was VNLOOVZLWKWKHKHOSRIWHDPFDSWDLQVDQG that she’d be committing not only her brains but also her brawn to the job. ULVNPDQDJHUV0DWWKHZ(FNIRUGDQG.HLWK *DUEXWW7KUHHWLPHVDZHHNWKH\VWDUWHG WKHLUGD\VZLWKHDUO\PRUQLQJVZLPSUDFWLFH IROORZHGE\OXQFKWLPHVSLQQLQJVHVVLRQV While Bella Berns was still adjusting to her SODFHLQEHWZHHQ&UHGLW6XLVVHDQG JURXSF\FOLQJ 7REDODQFHWKRVHGLVFL- new role, building a team and generally 0RUJDQ 6WDQOH\ %DUFOD\V &DSLWDO DQG SOLQHVWKH\ UDQ WZLFH D ZHHNPXFK WR ƟJXULQJRXWZKDWLWPHDQVWREHKHDGRI 'HXWVFKH%DQNMRLQHGLQDQG8%6 %HUQVŒFKDJULQŔ,ŒPQRWDJRRGUXQQHUVR SKLODQWKURS\ IRU &UHGLW 6XLVVH (XURSH FDPHRQERDUGLQ,QWKHILUVWWZR WKLVZDVWKHKDUGHVWSDUWIRUPHŕVKHVD\V 0LGGOH(DVWDQG$IULFD (0($ DWHDPRI \HDUVWKH&UHGLW6XLVVHWHDPWRRNILUVW Two weeks into training she was joined by KHUIHOORZHPSOR\HHVIURPRWKHUGHSDUW- SODFHDQGZHUHGUHDPLQJRIDWKLUGZLQ DQRWKHUODVWPLQXWHUHFUXLWULVNPDQDJHU PHQWVKDGWKHLUH\HVRQWKHƟW$PHULFDQ “When the guys asked me to join, they ex- 6WHYH0XQGD\ZKRUHSODFHGDQRWKHULQ- 7KLVJURXSRIƟYHKDGEHHQWUDLQLQJIRU SODLQHGWKDW,ZRXOGEHWDNLQJWKHSODFHRI MXUHGPHPEHURIWKHWHDP$QGMXVWVL[GD\V VL[PRQWKVLQSUHSDUDWLRQIRUWKHWKLUGDQ- DIRUPHU2O\PSLFVZLPPHUŕH[SODLQV%HUQV EHIRUHWKHUDFH.HLWK*DUEXWWGURSSHGRXW QXDO(QGXUR&KDOOHQJHDQDUGXRXVWULDWKORQ JHVWLFXODWLQJZLOGO\Ŕ,WKRXJKWWKH\ZHUH due to an injury and equities analyst Will UHOD\UDFHFRQWHVWHGDFURVVODQGDQGZDWHU FUD]\IRUDVNLQJPHWRUHSODFHKHU*HQHU- )RUEHVVWHSSHGLQ7KHVL[SHUVRQWHDP EHWZHHQ/RQGRQDQG3DULV7RFRPSHWH DOO\WKH\DUHYHU\VHOHFWLYHDERXWZKRFDQ ZKLFKDOVRLQFOXGHGUHJLRQDOPDQDJHU3DXO DWHDPPXVWKDYHVL[SHRSOHDQGMXVWVL[ MRLQDQGZHUHREYLRXVO\GHVSHUDWHŕ $QQHJDUQDQGULVNRIƟFHU6WHYH/\GHOOGLG ZHHNVEHIRUHWKHFKDOOHQJHRQHWHDPPHP- WKHLUŔUHDOŕWUDLQLQJRQWKHZHHNHQGVZLWK EHUKDGEHHQIRUFHGWRGURSRXW+DYLQJ The Team Drives a Hard Bargain ORQJELNHULGHVDQGUXQVDQGDFRXSOHRI GLVFRYHUHGWKDW%HUQVKDGFRPSHWHGLQDQ Most likely the team just had a good sense WULSVWR'RYHUWRWHVWWKHFROGZDWHUVRIWKH LURQPDQLQ DQGZDVDQDYLGVZLPPHU IRUVSRWWLQJDWKOHWHVDQGWKH\NQHZWKDW (QJOLVK&KDQQHO WKH\VHWWKHLUVLJKWVRQKHUDVDUHSODFH- %HUQVŒHQHUJHWLFSHUVRQDOLW\ZRXOGEHDQ %HDXWLIXOZHDWKHUJUHHWHGWKHWHDPVRQ PHQW$VKHDGRISKLODQWKURS\VKHZDV DVVHW6KHZDVZRQRYHUE\WKHLQLWLDWLYHWKH 6XQGD\$XJXVWDVWKH\PHWDWTXLHW KDUGSUHVVHGWRWXUQGRZQWKHRIIHUWRKHOS WHDPKDGVKRZQXSWRWKDWSRLQWŔ,ZDVLP- &DERW6TXDUH/RQGRQIRUWKHVWDUWRIWKH WKHWHDPUHDFKWKHLUREMHFWLYHRIQRWRQO\ SUHVVHGZLWKWKHJX\VQRWMXVWIRUWKHLUDWK- UDFHZKLFKZDVDQPLOH NP UXQWR FRPSHWLQJEXWDOVRUHDOL]LQJWKHLUWUXHJRDO OHWLFLVPEXWIRUWKHZD\WKH\SXWWKHLUKHDUWV WKH'RYHUFRDVWŔ:HHDFKZRXOGKDYHWR RIUDLVLQJPRQH\IRUWKHƟUPŒVFKDULW\RIWKH DQGVRXOVLQWRUDLVLQJIXQGVIRUWKHFKDULW\ UXQWZRNLORPHWHUVHJPHQWVWRJHWWR'R- \HDU:KL]].LG] 7KHPRWLYDWLRQEHKLQGWKLVHYHQWZDVQŒW YHU,ZDVSURPLVHGWKHWZRƠDWWHVWURXWHV $QDGGHGERQXVRIWKHFKDOOHQJHZDV FRQFHLYHGE\VRPHRQHOLNHPHZKRLVSDLG EXWLQKLQGVLJKW,WKLQNWKHJX\VZHUHMXVW WKHWUDGLWLRQRIWDNLQJRQWKHVWURQJFRPSH- WRFRPHXSZLWKIXQG  UDLVLQJHYHQWVOLNHWKLV WU\LQJWRNHHSPHIURPZRUU\LQJŕVD\V%HUQV WLWLRQIURPIRXUJOREDOULYDOV%DUFOD\V&DS- but by a group with the determination to RIWKHSDUWVKHPRVWGUHDGHGŔ'HVSLWHJLY- LWDO'HXWVFKH%DQN0RUJDQ6WDQOH\DQG PDNHDGLIIHUHQFHŕVKHVD\VŔ6RRIFRXUVH LQJWKHLUDOOWKH&UHGLW6XLVVHWHDPVWLOO 8%67KHLQDXJXUDO(QGXUR&KDOOHQJHWRRN ,DJUHHGWREHSDUWRIWKHWHDPŕ FDPHLQPLQXWHVEHKLQG'HXWVFKH%DQN

Credit Suisse Bulletin 4/07 Credit Suisse Commitment 39

DQGPLQXWHVEHKLQG0RUJDQ6WDQOH\ Ŕ:HZHUHH[SHFWLQJWKLVDQGNQHZZHFRXOG FDWFKXSZLWK'HXWVFKHRQWKHVZLPDVWKH\ GLGQŒWKDYHVWURQJVZLPPHUVEXWZHZHUH ZRUULHGDERXW0RUJDQ6WDQOH\ŒVWHDPŕ 7KHWLGDOFRQGLWLRQVWKDWHYHQLQJPDGH it impossible to begin the swim, so the WHDPVVOHSWRIIWKHLUDFKHVDQGSDLQV&RP- IRUWDEOHEHGVZHUHUHDG\IRUWKHPZKHQ WKH\JRWWR'RYHUWKDQNVWROHDGRUJDQL]HU .HLWK*DUEXWWWKHQDYLJDWRUVDQGGULYHUV *UDKDPH0XUUD\DQG&KDG5RJHUVRQDQG UHVHUYHWHDPPHPEHUV$GULDQ&DUUDQG :DUUHQ(YDQVŔ.HLWKZDVDJUHDWWHDP PDQDJHUGHDOLQJZLWKWKHORJLVWLFVQXWULWLRQ DQGWUDQVSRUWDWLRQŕVD\V%HUQV 7KHVXQDJDLQJUHHWHGWKHFUHZIRUWKH PLOH NP VZLPWR&DODLVŔ:KHQ\RX swim the Channel, you are not only dealing ZLWKWKHFROGEXWDOVRZLWKVKLSWUDIƟFDQG ƠRDWLQJGHEULV$FWXDOO\LWZDVSUHWW\FOHDQ DQGWKHVNLSSHUWRRNJRRGFDUHRIXVEXW, WKLQN,VKRXOGPDNHWKLVVRXQGDELWPRUH VFDU\VRLWŒVPRUHLPSUHVVLYHŕVD\V%HUQV ODXJKLQJŔ6HULRXVO\LWZDVDPD]LQJWRVHH WKHILYHVNLSSHUVWDNLQJGLIIHUHQWURXWHV EDVHGRQWKHLURZQVFLHQFH6RWKHZKROH Will Bella Berns, head of philanthropy for Credit Suisse EMEA, take on the Enduro Challenge again in 2008? “I’d consider it,” she says laughing. “But I’d rather spend the next VZLPZDVDPL[WXUHRIVFLHQFHWUDLQLQJDQG six months looking for stronger athletes to take my place.” She dreams of expanding DWKOHWLFLVPŕ7KH&UHGLW6XLVVHWHDPZDV the event to include Credit Suisse employees from around the world. With her enthusiasm, ƟUVWWRUHDFK&DODLVFRPSOHWLQJWKHVZLP anything is possible. LQDUHFRUGKRXUVDQGPLQXWHV 2QFH DOO RI WKH WHDPV KDG ODQGHG LQ Calais on Monday night, they began the PLOH NP F\FOHOHJŔ:HZHUH FROGDQGWLUHGEXWOXFNLO\ZHKDGJUHDW QDYLJDWRUVWHOOLQJXVZKHUHWRJRLQWKHGDUN :HZHUHDOVRIHHOLQJWKHSUHVVXUHRIKROG- LQJRII0RUJDQ6WDQOH\NQRZLQJRXUOHDG ZDVVOLPŕVD\V%HUQVŔ%XW,NQHZZHZHUH Fund-Raising Can Help Dreams Become Reality JDLQLQJZKHQ,KHDUG0DWWRYHUP\KHDGVHW Since its inception in 2005, the Enduro Challenge has raised almost 815,000 dollars for VD\ő%HOOD\RXDUHƠ\LQJNHHSLWXSŒŕ 7KHWHDPKDGJDLQHGDPLQXWHOHDG charities across London. While the funds raised this year are still being counted, together RYHU0RUJDQ6WDQOH\DVDUHVXOWRIWKHLU the five participating banks have already raised almost 560,000 dollars. Five charities VWURQJ VZLPPLQJ DQG F\FOLQJ OHJVDQG will benefit from the proceeds of the 2007 Enduro Challenge, namely Dreams Come True, DJDLQZRQƟUVWSODFH$OWKRXJKWKHFRPSH-

Whizz-Kidz, SPARKS, Great Ormond Street Hospital Children’s Charity and the Bridge WLWLRQZDVƟHUFHDOOƟYHWHDPVFDPHWRJHWK- HULQ3DULVWRFHOHEUDWHZLWKFKDPSDJQHDQG Academy, Hackney. Whizz-Kidz, Credit Suisse’s charity of the year, provides disabled children GLQQHUŔ,WZDVDQDPD]LQJH[SHULHQFHWKDW with customized mobility equipment and advice to help them lead a more independent life. LQVWLOOVSULGHLQRQHVHOILQWKHFRPSDQ\WKDW

Photo: Oliver Lang Oliver Photo: )RUPRUHLQIRUPDWLRQYLVLWZZZZKL]]NLG]RUJXN VXSSRUWHGXVDQGLQP\WHDPPDWHVŕ

Credit Suisse Bulletin 4/07 40 Credit Suisse Commitment

Credit Suisse Russia Equestrian Sport Sponsorship Russian Polo Gains Footing in Moscow

Text: Michèle Bodmer

Land Rover, the team representing the Polo, known as the sport of kings, has enjoyed greater reach thanks Russian Polo Club – the main competitors to increasing levels of commercial sponsorship and promotion. of the Moscow Polo Club – won the Credit Suisse supports the sport internationally, most recently with tournament. The MPC came in a close a championship tournament in Moscow. second.

At the end of August, the Moscow Polo were avid observers. After the October Rev- ward – who is a member of the prestigious Club hosted the Russian Open Polo Cham- olution in 1917, the game was abruptly dis- British Guards Polo Club – refereed. pionship sponsored by Credit Suisse. continued, along with most other so-called The Russian Open Polo Championship Michael Vlahovic, head of Russia, Eastern aristocratic indulgences. In the summer of marks the end of the summer and the end Europe and Central Asia for Credit Suisse, 2003, the first chukka was staged, firmly of the playing season. This is a point when believes that the bank and polo have much reintroducing polo in Russia, thanks to both players and horses are in top form, in common. “Polo combines speed, trust 3HUXYLDQƟQDQFLHU9LFWRU+XDFR7KLVDOVR which makes for a good show, considering and teamwork. It is a sport that requires marked the inauguration of the Moscow this 2,600-year-old sport is one of the fast- great responsibility and commitment,” he Polo Club. est and roughest played today. Another says. “These are all values we share and unique aspect is that no matter how great a seek to deliver to our clients.” Credit Suisse Polo Slowly Regains Its Popularity player’s skill might be it is the performance also supports the renowned Royal Windsor Despite the long sojourn, the love of polo of the pony that can make or break a match. Cup in the UK. has been reestablished in the hearts of In this tournament, the grey mare Paloma The Russian Open Polo Championship Muscovites. “Polo gets a lot of attention in was named the best pony. The best player, was created in 2006, thanks to the club’s the media in Russia, but the participation who was not riding the winning pony, was president and polo player Alexis Rodzianko, still isn’t where we would like it to be,” says Diego Cavanagh, the Argentinean profes- who is head of Private Banking for Credit Rodzianko. “Events like this are important in sional playing for Land Rover. Adding to the Suisse in Russia. “My goal is to promote attracting attention to the sport and to the excitement of this championship was the the sport in Russia and the former Soviet players.” Tournaments like this one, which fact that two rival clubs competed in the Union,” he says. To achieve this, the club bring together some of the world’s best deciding match: the Russia Polo Club and trains boys and girls with or without prior players, attract high society and – as a re- the Moscow Polo Club. “This was a hotly horse-riding experience to breathe new life sult of corporate sponsoring – leaders in contested and exciting game, which Land into the game, which prior to 2003 hadn’t politics and business. Rover – the team representing the Russia been played for 86 years. Polo was origi- This year’s championship also brought Polo Club – won 6 to 4,” says Rodzianko. nally introduced to Russia in 1870 during together some of Russia’s and the world’s “They scored three goals in the last chukka, the rule of Tsar Alexander II and had gained WRSSRORSOD\HUVLQFOXGLQJ+HUQDQDQG surprising everyone.” The winning team popularity among the ranks of the Russian $OHMDQGUR7UDYHUVR+DZN6XQVKLQH9LFWRU brings home the title Champion of Russia military aristocracy by the reign of Alexan- +XDFR0LFKDHO5RG]LDQNR6HUJHL5LDER and will be invited to compete in the June der III. Members of the Russian imperial kobylko, Diego Cavanagh and Yevgeny 2008 Ivan the Terrible Tournament orga-

family either actively played the sport, or 2YFKDURY6SHFLDOJXHVW0DMRU-DPLH+D\- nized by the British Guards Polo Club. < Suisse Credit Photo:

Credit Suisse Bulletin 4/07 Credit Suisse Commitment 41

Sport Sponsoring The Swiss Year in Golf in Review 20 Years of Credit Suisse Involvement in Golf

Text: Andreas Schiendorfer

The Severiano Ballesteros golf course in Golf plays a central part in Credit Suisse’s sports sponsorship program. In fact, Crans-Montana is 1,450 meters above sea it has a 20-year-history which began in Crans-Montana. This year, from Sep- level and is known for its trickiness. tember 6 to 9, the PGA European Tour made a scheduled stop to compete in what is known as Switzerland’s most prestigious golf tournament.

Crans-Montana, with its stunning alpine prize of a kilogram of gold. The last time that ahead of Scotland’s Andrew McArthur, backdrop, is one of Switzerland’s most this had been achieved was in 1999 by the fellow Englishman Robert Dinwiddie and popular holiday destinations. Since 1923 Australian Wayne Riley. Spaniard Carlos Del Moral. this exceptional location has also benefit- And what about the Swiss? They’ve ed the European Masters, which year after A History of Golf Sponsorship been struggling for years to make it into year attracts some of the world’s top golf- The tournament in Crans-Montana has JROIŒVWRSƠLJKW,QWHUPVRIWKHLUUDQNLQJV ers. However, the scenic course, which is been supported by Credit Suisse as the the situation is as follows: 14th (Julien Clé- 1,450 meters above sea level and was de- main sponsor for the past 20 years. This is ment), 20th (Martin Rominger) and 32nd signed by Severiano Ballesteros, is known where Credit Suisse began its systematic (Nicolas Sulzer) at the Credit Suisse Chal- to be tricky. involvement in golf sponsorship in 1987. lenge; 48th (Julien Clément) at the Omega Many stars have failed to shine here. In Now the bank supports Switzerland’s major European Masters; and 70th (Helmuth 2007, for example, the course claimed a men’s tournaments, two of which deserve Schumacher) in Bad Ragaz. couple of new victims in New Zealander special mention: the PGA Seniors Open in Michael Campbell, who won the US Open Bad Ragaz and the Credit Suisse Chal- 6XSSRUWLQJWKH1H[W*ROƟQJ*HQHUDWLRQ in 2005, and the up-and-coming Argentin- lenge, which is held near Solothurn. Credit Suisse places particular emphasis ian star Andrés Romero. After an extremely Italian golf star Costantino Rocca took on developing young talent with the hope exciting competition, the Australian Brett part in the Bad Ragaz tournament this year. that this situation will change for the better. Rumford beat England’s Philipp Archer in a His score, of 10 under par, certainly didn’t It is working on a number of projects to- SOD\RIIƟQLVKZKLOHWKHGHIHQGLQJFKDP- disappoint his numerous fans. Neverthe- gether with the Swiss Golf Foundation pion, Welsh hope Bradley Dredge, came in less, despite this excellent score he “only” and also supports the Sports Academy in third just one stroke behind them. shared second place with Argentinian Davos, where talented young golfers can Horacio Carbonetti and England’s David complete their high school education. A Hole in One Worth a Kilo of Gold J. Russell. England’s Carl Mason played Since 1992 Credit Suisse has sup- The young Italian professional Alessandro for all he was worth and took first place ported the Swiss Golf Foundation as main Tadini also caused quite a stir on his second with a full six strokes clear. Last year, he sponsor or partner. It has also supported round by hitting a hole in one, an event that came a close second to the Argentinian the Association Suisse de Golf since 1999 normally happens only every other year at Eduardo Romero. and the Swiss Professional Golfers Asso- Crans-Montana. Since he performed this At the Wylihof Golf Club in Luterbach it ciation (Swiss PGA) since 2005. This en- IHDWDWWKHHVSHFLDOO\GLIƟFXOWWKLUGKROHKH was former Ryder Cup player Peter Baker ables it not only to organize Pro-Am events

Photo: Andreas Meier Andreas Photo: was awarded the special Credit Suisse who won. The Englishman came in just but also so-called golf clinics. <

Credit Suisse Bulletin 4/07 42 Economy Global Macro Outlook The World Economy Is Under Pressure

Credit Suisse Bulletin 4/07 Economy Global Macro Outlook 43

When tectonic plates shift in opposite directions, they can trigger an earthquake. Something similar now seems to be happening in the world economy, as Asian growth surges and US housing declines. This volatility is likely to continue, but it’s QRWZLWKRXWEHQHƟWVIRULQYHVWRUVZKRPDNHWKHPRVWRIQHZRSSRUWXQLWLHV

Text: Giles Keating, head of Global Research for Credit Suisse Private Banking

The pressure has been building for several Second, the Asian boom seems to be spread- perhaps more important, points the other years, with the boom in China spreading to ing to a much wider geographic region, as way. America is no longer the default desti- India and many smaller Asian nations, while the scramble for energy and raw materials nation for global savings. In the past, when oil the US housing market has looked increas- starts to stimulate economies from Brazil prices rose, energy exporters like Saudi Ara- ingly stretched. This August and September, through to Russia, the Gulf and Africa. Many bia and Russia would have excess savings a break point was reached. Earlier problems RIWKHFRXQWULHVEHQHƟWLQJIURPWKLVDUHWDN- which they tended to recycle back into the in the US sub-prime mortgage market spilled ing a powerful long-term view, using the rev- US bond market. The same applied to the into a much broader dislocation across credit enues from the resource boom to finance massive capital account surpluses of coun- markets. Strong Asian demand sent many diversification of their economies. Perhaps tries across Asia from China and India commodity prices soaring. And, the dollar the most obvious example is Dubai, which through to Japan. Now, that is changing. moved sharply down as investors focussed has built a world-class city, port, financial US Fights for Share of Global Savings on the growth differentials. sector and medical facility with its oil rev- enues. Other Gulf nations are following, as The oil-exporting nations are starting to di- Central Banks Are Put in Tight Spot is Russia where President Putin has an- versify their economies which means they These sharp movements create real dilem- nounced world-scale infrastructure and in- have new investment opportunities at home mas for the Fed and other central banks, dustrial developments. Brazil is going the that did not exist before. China still has a who must balance the inflation risks ema- same way but more slowly, while most Afri- very large capital surplus, but that is likely nating from Asia against the adverse impact can nations are at a far earlier stage of trying to decline as domestic consumption grows on growth from the slowdown in US housing. WRHIƟFLHQWO\H[SORLWWKHLUUHVRXUFHULFKHV and as the renminbi continues to appreciate, At one extreme, the Fed has cut interest Third, the US trade deficit, which has per- and in the meantime, the authorities have rates. At the other extreme, Switzerland and sisted for so long that it seemed to have announced their intention to divert some some other smaller developed nations, as become a fixture in the world economy, is 200 billion dollars from reserves (invested well as China, have raised rates. There is still now falling and looks as though it can de- largely in US bonds) into a wealth fund considerable uncertainty about whether cline much further over the next one to two with a much broader investment remit. In these policy-makers will be able to adjust years. This reflects very simple macroeco- this changed environment, the US has to bid their instruments in the right way to stabilize nomics. Weakness in housing is depressing much harder for its share of global savings. the world economy, and markets are likely US domestic demand, which sharply reduces That tends to mean a lower dollar, a steeper to remain volatile while this heightened un- import growth. Meanwhile, the strength of yield curve and also a political willingness to certainty persists. But there are some tenta- demand in Asia and the other regions men- allow at least partial stakes in some of the tive signs of how the global picture may look, tioned above is boosting US export growth nations companies to be sold to foreign sov- as the aftershocks subside. well into double-digits. On top of this, the ereign investors. First, it looks as though robust Asian dollar, even before the recent decline, was This changed world contains many ele- growth will continue, affected only mildly by low enough to make much of US industry ments that are unfamiliar, and is likely to be the slowdown in the US. China needs to slow competitive against its global peers, and more volatile than in recent years. But it is a little for its own reasons, to counter excess deep structural cost problems like those in also likely to offer many exciting new in- investment and high food price inflation. This the auto industry are being addressed. vestment opportunities, not only in the fast- is likely to mean that growth falls from al- The decline in the US external deficit growing nations of Asia, but also in the re- most 12 percent to about 10 percent, a rate might be expected to help support the dollar. source-rich countries that are scrambling to

Photos: Photodisc Photos: that would still be the highest in the world. But it comes at a time when another force, diversify their economies. <

Credit Suisse Bulletin 4/07 44 Economy Swiss Forecast 2008 “A Slowdown Would Be a Good Thing for the Swiss Economy” The international credit market crisis and rising price of oil will not derail the Swiss economy from its growth trajectory in 2008, says Alois Bischofberger, Chief Economist of CreditSuisse.Heisforecastingagrowthinrealgrossdomesticproductof1.9percent for Switzerland next year.

Interview: Daniel Huber

Bulletin: The negative repercussions of cal engineering, electricity and metals indus- is booming. The momentum of growth for themortgagecrisisintheUS isahot try this stands at a record high of 94 percent. the first semester of 2007 was significantly topic now. How strongly will this impact If the rapid production tempo persists, the greater than that of the European Monetary on the Swiss economy? medium-term consequence would inevitably Union (EMU), as is demonstrated by higher Alois Bischofberger: We cannot expect the stoke inflationary fires. growth rates in new orders, production, ex- credit market turmoil to have no impact at Many people think that a period of ports and capital expenditure. all on Swiss economic development, and the stagnation is now upon us after the years But isn’t it nonetheless true that we slowdown in the global economy and surge of plenty. have reached a turning point? in the oil price will also make themselves felt. We are still far from stagnation. Global eco- Yes, it is. The global economy has been liv- But the repercussions will be moderate and nomic growth continues to lie at around 5 ing in a golden age, as it were, for four years entail no collapse in growth. A slowdown percent. While it is true that it will be lower now. Now, however, there are signs that the would actually be a good thing, as there are next year, it will still remain above the long- global economic backdrop is becoming less clear signs emerging that the economy is term average, driven in particular by a solid rosy. In the medium term, there is likely to overheating. There are some glaring short- domestic economy in Europe and powerful be upward pressure on inflation. Higher in- ages of specialists and highly qualified pro- growth in the Asian emerging markets. terest rates make investment more expen- fessionals in the labor market, while capacity In Switzerland we are experiencing the sive, though they also mean a reduction in utilization is extremely high. In the mechani- opposite of stagnation. The Swiss economy wasteful investment. But the term “turning

Credit Suisse Bulletin 4/07 Economy Swiss Forecast 2008 45

point” should not be interpreted to mean that nificant differences between regions and we are on the brink of a long economic industry sectors. There will be almost full slump. In the medium term, the wider pa- employment in the chemical-pharmaceutical rameters of the global economy remain fa- industry, in mechanical engineering and in vorable. Positive factors include the high financial services. French-speaking Swit- global requirement for investment in infra- zerland and Italian-speaking Switzerland will structure, energy production and distribu- continue to have higher unemployment rates tion, the technological progress that leads than their German-speaking counterpart. to innovation, and the increased globaliza- The lack of specialists and highly qualified tion that brings both a more international professionals will remain acute in many busi- division of labor and greater competition. nesses, despite the slowing of growth mo- How strongly – or with what time lag – mentum. For this reason, employment will ZLOOWKH6ZLVVHFRQRP\EHLQƠXHQFHGE\ continue to rise. We are anticipating an in- stock market trends? crease of 2 percent for this year, and a slow- Alois Bischofberger has been The Swiss economy will be less affected by down to 1.2 percent in 2008. Chief Economist of Credit Suisse the repercussions of stock market fluctua- Is the Swiss franc going to remain at since1986.Hiseconomicfore- tions than by other influences, such as labor such a low level against the euro? casts for the Swiss economy next market development, income prospects, The Swiss franc should appreciate to around year are upbeat. Among other and the corporate sales and earnings pros- 1.60 over the next 12 months. The rise will things, Bischofberger holds the pects. That doesn’t mean that our economy be moderate; the exchange rate will continue is immune to what happens in the financial to stimulate the export economy. By con- ƟUPYLHZWKDWFRQVXPHUVSHQGLQJ will continue to remain at a high markets. But the effect is likely to be cush- trast, the Swiss franc is likely to appreciate levelthankstothepersistently ioned by these real economic factors. rather more strongly against the US dollar. high level of employment and the What are your economic forecasts for The financial market turbulence of the last rise in purchasing power. In addi- the coming year? few months has had a minimal and only tem- tion, the unemployment rate We are anticipating growth in real gross do- porary effect on the euro/franc exchange could fall to 2.4 percent over the mestic product (GDP) of 1.9 percent, and an rate. There has been no stampede into the course of next year, coming in at average rate of inflation of 1.1 percent. In Swiss currency. It looks as if the increased 2.6 percent for the year on average. 2006, GDP rose by 3.2 percent. This year we confidence in the solidity of the European are expecting a figure of 2.5 percent. We’ve single currency is significantly reducing up- talked about the development of spending. ward pressure on the franc in turbulent times. to tackling key challenges, such as putting Where capital expenditure is concerned, Whether or not this will prove a permanent Switzerland’s social welfare system on a se- there is evidence of conflicting trends. Con- phenomenon remains to be seen. cure long-term footing. struction investment is continuing to lose Is your view, what will be the major What are your forecasts for the Swiss steam, while company investment in plant stories preoccupying the Swiss economy ƟQDQFLDOFHQWHULQ\HDUV" and equipment is continuing its positive over the next year? The banking sector will continue to play an trend, albeit with reduced momentum. From a global perspective, the aftermath of important role, both for the Swiss economy And what is the outlook for exports? the credit market turmoil will continue to and internationally. It already contributes The growth rate in real exports will work out occupy center stage. Another issue could 10 percent to our GDP, and continues to lower in 2008 than in the current year due be the potential flare-up of protectionist head the international league tables of to the decline in growth of the world econ- tendencies against a backdrop of slowing cross-border asset management for private omy. However, new orders from abroad con- growth. There may also be debate on wheth- individuals. But it’s no secret that there is a tinue to increase strongly, suggesting that er the monetary policy of central banks dur- continuing rise in competition between dif- exports will continue to make a significant ing the financial market turbulence has set ferent international financial centers. contribution to overall Swiss growth. The the scene for a rise in inflation. The next 12 Maintaining our position will require ma- medium-term outlook for our export indus- months are likely to see increased attention jor efforts. The goal, however, is to con- try is healthy. It is being driven not only by on the political and economic intentions of solidate our current position. This can be the global boom in investment but also by the US presidential candidates. achieved if the improvements in the wider the increase in the standards of living in Within Swiss borders, scarcity of supply parameters recently targeted in the “Swiss many developing countries. The emerging in the labor market will remain an important Financial Center Master Plan” can be con- middle class is looking to acquire upmarket issue. Immigration can alleviate some of sistently implemented. The Master Plan sets consumer goods from the industrialized na- these symptoms. In addition, high priority an ambitious vision: it aims to position Swit- tions, not least from Switzerland. should be accorded to the proper training of zerland, currently ranked sixth among inter- Whereisthelabormarketheading? Swiss workers. Measures aimed at eroding national financial centers, in the top three The unemployment rate is likely to fall to Switzerland’s status as a “high-price island” alongside London and New York by 2015. around 2.4 percent over the course of 2008, are likely to be the subject of heated debate. This is a challenge not only for the Swiss equating to around 2.6 percent on average And soon a new legislature will take office, political system, but also for the financial

Photos: Horizon, F1 ONLINE F1 Horizon, Photos: | travelstock44.de Held, Juergen | Walter Stefan for the year as a whole. There remain sig- and we will see if the new parliament is up institutions themselves. <

Credit Suisse Bulletin 4/07 46 Economy Global Education Education Reigns SupremeinaFlatWorld Education has been relatively static over the past decade,while connectivity technologies have ushered in rapid global economic transformation. The outcome is a widening gap between the geographic demand for labor and the supply. Nations that quickly adapt their educational systems can still improve their future and boost global productivity.

Text: Steven Soranno, Equity Research Analyst

The shifting demand for labor is changing crisis. In India, for example, over half the national companies need filled. As a result, the types of education required while adding nation’s 1.1-billion population is age 24 or India has a critical labor shortage. Wages to the imperative that the billions of people younger, among the world’s highest per- are on a pace to surge nearly 15 percent in below the education poverty line receive centage and a potentially invaluable asset. 2007, after a 14 percent jump last year, rap- proper training. Meanwhile, connectivity But despite substantial progress, literacy idly eroding India’s labor cost advantage technologies are dramatically lowering the rates remain well below the global average. versus countries such as China where aver- costs of information exchange, making it Only 10 percent of Indians ages 18 to 24 are age wage increases are 8 percent to 9 possible to share information and develop enrolled in higher education compared with percent per year. Very nearly one quarter ideas. This reality is enabling information 45 percent in the west, according to Prime of India’s information technology workers and training to reach the global population Minister Manmohan Singh, and many who changed firms in 2005, generating a mas- in ways never before possible. Despite this, do graduate from the universities are inad- sive loss of accumulated experience for education around much of the world is in equately prepared for most of the jobs inter- companies that invested in training; a cor-

Credit Suisse Bulletin 4/07 Economy Global Education 47

porate asset that had to be replaced by of- In one example, the United Nations, the Af- schools already feature Smart Boards – fering higher wages to attract similar experi- rican Union’s New Partnership for Africa’s large touch screen computers that enable ence in the open market. Development (NEPAD), and several major students to interact with their lessons. As the world becomes connected in a telecom equipment companies are working The words of OLPC’s founder and chief, networked economy, the rate of change is feverishly to ready for the day in 2008 when Nicholas Negroponte, are especially reveal- increasing, while innovation and dynamic a fiber-optic cable being laid along the con- ing when he describes students who have thinking are rising in importance. A good tinent’s east coast is scheduled for comple- received the laptops in test distribution: example is Korea, where the government tion, bringing broadband access to 22 na- “Their first English word is Google and they spends 7.5 percent of gross domestic prod- tions. NEPAD’s e-schools initiative has the know Skype, they have never heard of tele- uct (GDP) on an educational system that ambitious goal of wiring 600,000 African phony … they go home at night and they has a strong traditional emphasis on rote high schools by the time the cable becomes have a broadband connection in a home that memorization. Despite spending more on operational. In another example, roughly 80 does not have electricity. The parents love education than any industrialized nation, percent of Ethiopia’s students live in areas it because when they open up the laptops, Korean citizens spent roughly 38 billion dol- without electricity or running water, but the it is the brightest light source in the house.” lars last year on supplemental private school- nation recently built 458 schools with gas Seven nations have committed to large ing, and the number of students enrolled in generators that power 42-inch plasma tele- scale OLPC distribution, including Thailand, foreign schools doubled from 19 9 8 to 2005. vision screens. Every day, these TVs feature Brazil, Nigeria, Argentina, Libya and Uru- Korea lags only behind India and China broadcast lessons from South African guay. OLPC recently began mass produc- in the number of students attending US schools. tion and plans to have three million units schools, although those countries have over The Kenyan government is profiting from ready in October. These units will go into 20 times the population. The key risk, is that the country’s low wage advantage to train final testing before mass deployments to many of these students may not return. a call-center-ready workforce. Kenya’s call low-income children next year. Negroponte center employment soared from 200 people is forecasting a 100 -million unit peak annual Education Equals Future last year to 3,000 this year. At present, the production. The laptop is designed for use As if by providence, the same types of con- nation relies on expensive satellite connec- with alternative power sources, such as so- nectivity technologies sparking the demand tivity, but if connectivity costs plummet after lar panels and an innovative hand-powered for educational change are also vastly en- Kenya links to the fiber-optic-network. A generator. It should have a 13 5 -dollar unit hancing nations’ abilities to accomplish such partnership between the UN Development cost at initial mass distribution next year, de- change. Among the varied education solu- Programme (UNDP), companies such as clining to an estimated 50 dollars by 2010. tions being applied in India is a pioneering AMD, Quanta, Red Hat, eBay and Google, Many other companies are involved in simi- use of satellite technology. While India has and the One Laptop per Child (OLPC) orga- lar projects, whether involving laptops, serv- a significant trained teacher shortage, it is nization is planning to deliver 2.2 million lap- ers or software. The 21st century promises using connectivity technologies and innova- tops to Rwanda by 2010. Some Rwandan to be a supremely interesting time. < tive practices to spread the word of those it does have. The world’s first education satel- lite, Edusat, began a phased service deploy- Inequalities in Net Primary Enrollment/Attendance Rates, ment late in 2006 after a test phase that Selected DMCs (percent) linked government schools with rural teach- The ability of nations to quickly adapt their educational systems for changing labor demand trends will largely determine their economic fortunes –DQGKDYHDVLJQLƟFDQW er training centers. Roughly 30 percent of global productivity impact. Sources: Estimates compiled from Angel-Urdinola et al. (2006), Deolalikar (2005a), India’s population is illiterate, with the vast Pakistan Federal Bureau of Statistics (2006), UNICEF (1999, 2000a–d, 2005), World Bank (2004a, 2005, 2006) majority living dispersed in rural areas. Edu- sat spreads knowledge from well-equipped Vietnam (2002) Sri Lanka (2002) urban schools to roughly 5,000 remote ter- Armenia (2004) minals at under-equipped rural schools. Pilippines (1999) $]HUEDóDQ(2000) The Role of Educational Imperative Indonesia (2002) Myanmar (2000) Partnerships between national govern- Mongolia (2000) ments, multinational organizations such as Nepal (2001) the World Bank and UNESCO, and corpora- Kyrgyz Republic (1997) Camodia (2001) tions, are building technology-laden educa- Bangladesh (2000) tion networks at fast paces. Private partici- Lao PDR (2000) pation often brings technological expertise, Uzbekistan (1996) manufacturing capabilities and, if neces- Pakistan (Urban 2002) India (2000) sary, change leadership. Government involve- Pakistan (Rural 2002) ment helps assure cultural awareness and product distribution. Non-profit assistance 0102030405060708090100

often coordinates the presence of enabling Ə 1DWLRQDODYHUDJH(%) Ə (QUROOPHQWDWWHQGDQFHUDWHVIRUSRRUHVWTXLQWLOHXSWRULFKHVWTXLQWLOH(%)

Photo: Photodisc Photo: content, such as laptops or microfinance.

Credit Suisse Bulletin 4/07 48 Economy New Trends Sun Rises on Solar Energy The heat is on solar energy these days as concern about global warming and rising oil prices prompts more countries to launch programs to promote solar power. In doing so, they are helping this relatively young industry to boost innovation and achieve growth rates of which other sectors can only dream.

Text: Dominik C. Müller, Equity Sector Research

In less than two hours, enough solar energy over 10 percent on their solar installations, of generally high electricity prices, however, reaches the surface of the earth to satisfy depending on location, weather conditions demand remains steady, especially as solar the entire energy needs of the world’s pop- and panel type. These promotional programs plants can be integrated cost-effectively ulation for a full year. At least, that’s the are gaining additional momentum thanks to into new-build homes. theory. In practice, solar cells generate not the European Union (EU) Energy Commis- A Blossoming Industry even 0.1 percent of the electricity produced sion’s ambitious target of satisfying 21 per- around the globe. The potential is therefore cent of EU-wide energy consumption from The industry has responded to the enormous huge, and the political will to promote en- renewable sources by 2010. surge in demand with a huge expansion in vironmentally friendly power generation is The US is also getting serious about the capacity. At the present time, the global out- growing steadily. sun. At the state level, California leads the put of solar cells is growing at some 40 per- pack, having just made 3 billion US dollars cent every year. There are almost weekly Lucrative Incentives for Solar Power available to support solar installations. The reports of companies building new produc- In Europe, it is mainly southern countries most progressive nation in Asia is South tion lines for solar modules or increasing such as Spain, Portugal, Italy and Greece Korea, which promotes the construction of their output of crystalline silicon. As the that are following the German example in solar energy plants with low-interest loans main raw material for the solar industry, sup- passing legislation that will subsidize each and guarantees a payment of 0.58 euros plies of the latter are becoming tight, and kilowatt-hour (kWh) of electricity that is fed per kWh for 15 years. market prices have thus more than doubled into the national grid from solar installations Meanwhile in Japan, which currently ac- within the last two years. As a result, some by up to 0.50 euros for the next 20 years counts for 17 percent of solar energy in- manufacturers of solar silicon and silicon or more. These are considerable incentives stallations worldwide, solar power hardly at- discs are generating returns of which other

that promise operators annual returns of tracts further subsidies. Against a backdrop companies can only dream. Getty Images Lyon, Marcus Photos: | Photodisc

Credit Suisse Bulletin 4/07 Economy New Trends 49

In the medium to long term, however, the ing energy. Demand is being driven primar- New Materials Mean Better Cells: aim of politics and industry alike is to make ily by two large and fast-growing markets. the Nobel Prize-winning invention of solar power a competitive form of electricity. The first is for hybrid and electrical vehicles conductive polymers paved the In some countries, this should take as little which, according to the market research way for organic solar cells that can as five years, but should be a reality world- company Freedonia, will expand by up to EHSURGXFHGIURPFKHDSƠH[LEOH wide within no more than 10. Achieving this 50 percent over the next three years. The plastic and wound around structures target demands an annual reduction of at second is created by the dependency of the or even painted on. Their low resis- least 7 percent in the price of solar panels – manufacturers of a rapidly expanding array tance to ultraviolet (UV) light and rel- a rate of reduction that is also a condition of of mobile electronic applications on ever DWLYHO\ORZHIƟFLHQF\KDYHVRIDU state subsidies. more efficient batteries. SURYHGWREHGUDZEDFNVDOWKRXJK Players in the solar business are respond- US scientists recently achieved an Batteries in the Fast Lane ing to this pressure on prices with techno- HIƟFLHQF\RISHUFHQW logical innovation and by improving operat- Both markets exhibit a clear trend toward What’s more, in the future ultra- ing efficiency. The basic construction of improved, ultralight lithiumion (recharge- thin nanotechnology-based structures most types of solar cells is simple, so there able) batteries with a very high energy den- from new types of materials should is no reason they should not become a sity and new nano-coated electrodes, which cheap, mass-market good in the long term. allow them to be recharged very quickly. PDNHLWSRVVLEOHWRSURGXFHZLQGRZV which can generate electricity. We may well see a drop in prices such as With these new batteries, electrical vehicles that experienced by the computer chip in- should soon achieve mileages comparable $UWLƟFLDOSKRWRV\QWKHVLV is another dustry. While the outlook for the sector is to those of conventional automobiles. What’s exciting development. Here, light is rosy, with broad-based consolidation ahead, more, a full recharge should take less than XVHGƟUVWWRLRQL]HRUJDQLFPROH it is also hard to overestimate the benefits 10 minutes and cost only a fraction of a full cules before the electrical charge that that solar technology provides to society. tank of liquid fuel. The major auto producers this generates is passed to a cathode in both Japan and the US have recognized or anode. Generating Power Everywhere this potential and instructed well-known The first solar modules of the 1950s achieved battery manufacturers to develop such low- an efficiency of just 6 percent. The figure cost, high-performance batteries. for today’s silicon-based cells is over 20 These clean technologies will certainly percent, meaning that more than a fifth of become part of our daily lives. The question the captured sunlight is turned into electrical is – to what extent? While the long-term energy. The current world record is held by winners on the industrial side have yet to be special cells for satellite applications, which identified, the social beneficiaries are clear. are over 40 percent efficient. Low-cost Future generations will thank us for setting solar energy will likely be available every- our sights on solar energy. < where in just a few years’ time, with a cor- responding shift in the structure of energy generation away from central power plants Growing Demand Anticipated Cost Savings toward more local installations. Estimate of new solar panel instal- Measures to reduce the cost of silicon- lations worldwide: just under half of all based solar cells: raw materials In the future, solar power will not be gen- new photovoltaic systems are being consumption per cell is to be reduced erated on the roofs of industrial halls or at installed in Europe, with the US and by approximately 12 percent per year Asia accounting for a quarter each. ZKLOHHIƟFLHQF\LVLQFUHDVHG large-scale solar farms alone. The latest Source: Credit Suisse Source: European Photovoltaic Industry Association technologies open the door to a whole range of new applications, such as nano-coated Demand in megawatts % cell phones or laptops which recharge their 14,000 ōP 350 20 batteries automatically via their active pho- 12,000 18 tovoltaic cases and homes that have power- 300 10,000 16 generating windows. Second-generation 250 14 cells, known as thin-film modules, are al- 8,000 12 200 ready more cost-effective, can be molded 6,000 into any shape, and are lightweight and 10 4,000 150 therefore easy to integrate into a variety of 8 materials, on roofs and facades and even in 2,000 100 6 4 0 textiles. The widespread image of solar in- 50 2 stallations as bulky eyesores could therefore 04 05 06 07E 08E 09E 10E soon be a thing of the past. 0 0 Ə Germany Ə Italy 0405 06 07E 08E 09E 10E As the worldwide promotion of renewable Ə Spain Ə USA Ə China Ə Japan energies gains in importance, so too does Ə South Korea Ə Rest of the World (QHUJ\FRQYHUVLRQHIƟFLHQF\ Ə&HOOWKLFNQHVV that of lightweight, efficient means of stor-

Credit Suisse Bulletin 4/07 50 Economy Robots Robots Lend a Hand in Japan

Credit Suisse Bulletin 4/07 Economy Robots 51

It is no wonder Japan has been called “the robot kingdom.” Of the world’s at least 923,000industrialrobots,about4in10areinJapan.NowJapaneseinterest is turning to so-called service robots, which could play a crucial role in looking after the nation’s aging population.

Text: Tony McNicol

Japan has a deep-seated infatuation with robots to more than double by 2009, and maintain the robots themselves, often enter- mechanical friends, whether it is with the personal-use service robots to reach 5.6 ing them in Japan’s popular “robocon” soccer heroes of manga (comic books) and anime million by 2008. DQGƟJKWLQJFRPSHWLWLRQV7KLV2FWREHUWR\- (animation), hard-working industrial robots, The most numerous, and certainly the maker Takaratomy will try to draw new robot or the public relations humanoids of major PRVWKLJKSURƟOHVHUYLFHURERWVLQ-DSDQ fans with the Omnibot 17ō7KHLSOBOT, at Japanese corporations. are for entertainment. Ever since 2000 when about 275 dollars, is much cheaper than pre- Currently, all eyes are on the service- Honda amazed the world with its walking vious home humanoids. robot sector. This broad category includes humanoid Asimo, other Japanese compa- Less charismatic robots are also toiling XQGHUZDWHUPHGLFDOFOHDQLQJVHFXULW\ƟVK- nies have been fast on their heels. Notable behind the scenes. Service robot develop- ing, forestry, caregiving, entertainment and examples include Mitsubishi’s lemon yellow ment is strong in “hard, mechanical” areas, pet robots. At present, such robots only home helper Wakamaru, Toyota’s trumpet- says Shoichi Hamada, General Manager of make up a small percent of the overall robot playing humanoid, and Murata Manufactur- the Technical Department at the Japan market, but expectations for the sector are ing’s bicycle-riding robot. Although such im- Robot Association (JRA). Japanese con- high. An example is the 2007 International pressive PR robots are too expensive to sell, struction companies have been using robots Robot Exhibition due to open this November Japan also has popular home entertainment since the 1980s, including construction ma- in Tokyo. Service robots are expected to robots. The best known to date is Sony’s chines adapted for unmanned use and ro- account for more than a third of exhibits. robot pooch Aibo, which was produced be- bots to transport materials at building sites. Basically, the category includes any robot for tween 1999 and 2006. Humanoids have From 1997 to 2002, the Ministry of Econo- use outside the factory, but the Paris-based been a hit too. Since 2004, Tokyo-based my, Trade and Industry funded a five-year International Federation of Robotics identi- Kondo Kagaku Co., Ltd., have sold several project to produce a humanoid robot for in- ƟHVWZRPDLQW\SHVSURIHVVLRQDOXVHURERWV thousand of their walking robot kits, which dustrial use. The final 154-centimeter, 58- and private-use robots. Of the former, they cost about 795 dollars. Owners build and kilogram prototype, HRP-2, had 30 joints, > estimate that 31,600 were in operation at the end of 2005, the most numerous being underwater robots at 18 percent, cleaning Service Robots for Professional Use robots at 17 percent, and defense and secu- At the end of 2005, 31,600 service robots were installed for professional use. Underwater systems were the most popular and accounted for 18 percent of the rity robots following at 16 percent. total. Source: IFR Statistical Department, 2005 World Robotics Executive Summary By comparison, private-use service ro- bots are more numerous and much cheaper. Number of units Of the 2.9 million such robots accounted for 12,000

by the International Federation of Robotics 10,000

( IFR), more than half (1.8 million) were vac- 8,000 uum-cleaning robots like the popular Room- 6,000 ba robot made by the iRobot Corporation in the US. There were also 1 million entertain- 4,000 ment and toy and 79,000 lawnmower ro- 2,000

bots. “Service robots are in the early stage,” 0 says Marc-Antoine Haudenschild, a Credit

Suisse Global Research Equity Strategist Field Medical Logistic security Cleaning All others for Japan. “It is difficult and more expensive platforms demolition Underwater Mobile robot

to build sensitive, highly intelligent machines, Construction/

however, the market for service robots with Defense, rescue,

minimal intelligence is doing well.” He notes ƏUp to end 2005 Ə New installations 2006–2009

Photos: McNicol Tony | Grill, Tom Corbisthat | Photodisc the IFR predicts professional service

Credit Suisse Bulletin 4/07 52 Economy Robots

could walk on uneven ground and stand trigger to provoke something in the mind of sults to emotional categories and generates from a prone position. the owner,” he suggests. About 1,000 of one of 36 expressions on its polyurethane the robots, which cost about 3,000 dollars, face. Robots as Caregivers? have been produced since 2004. Overseas “We believe that artificial consciousness Another potential role for service robots is sales will begin shortly. is necessary,” says Junichi Takeno, a profes- dealing with Japan’s imminent demograph- Aside from a few limited markets the ser- sor at the university’s Laboratory of Robot ic crisis. A low birthrate and unrivalled lon- vice robot industry is still in its infancy. One and Science. “Robots will understand others gevity mean the number of elderly Japanese problem is that service robots have consider- and be self-aware.” Takeno says that kansei will increase dramatically over the coming able technological hurdles to overcome be- technology may one day give care-giving decades. In the absence of mass immigra- fore they are put to practical use. According robots a more friendly face. tion (which Japan has been keen to avoid) to the Japan Robot Association, the govern- It is still too early to say when the service a severe shortage of caregivers seems in- ment is supporting fundamental service ro- robot industry will really get into its stride, or evitable. Some people believe robots are bot technology research, such as advanced which country will be at its lead. And, of the answer. Takanori Shibata, a senior re- vision, sound and movement systems. Robot course, it may not even be Japan. Overall search scientist at the National Institute of intelligence will be crucial too. “The reason the industrial robot superpower is surpris- Advanced Industrial Science and Technol- that industrial robots have been so success- ingly behind in service robot research. The ogy, says that robot caregivers can be di- ful is that environments have been con- Japan Robot Association reported in 2000 vided into physical service and mental ser- structed to suit them,” says Hamada, “but that Japan is internationally competitive in vice robots. The former are designed to help that’s not going to work (for service robots) only three service robot areas: industrial with tasks such as washing or carrying el- in ordinary environments.” Scientists need to robots, construction robots and entertain- derly people, although given the limitations develop robots that can work anywhere, he ment robots. of current technology, not to mention safety says, even the haphazard changing layout of Research into medical robots has been concerns, they are still quite a long way from WKHDYHUDJHKRPHRURIƟFH hampered by inflexible safety regulations commercialization. Credit Suisse analyst Haudenschild that prohibit robot surgeons like those al- Mental service robots on the other hand agrees. “A main drawback of robots is their ready operating in the US. Nor can Japan are already here. One of the best known is inability to convey tactile sensations and emo- compete with NASA on space robots. Mili- Paro, an interactive robot seal designed by tions when interacting with human beings,” tary robotics research, which takes a huge Shibata himself. The sophisticated robot can he says. “Although robots are adept at ac- bite of European and US robot research remember its name and change its behavior curate repetition, they have limited powers funds, is out of the question for pacifist depending on how it is treated. It has been of judgment when different movements Japan. Ironically, the earthquake-prone na- extensively tested in homes for elderly peo- must be performed randomly.” tion even lags in rescue robots. ple and in hospitals. In 2002 the Guinness According to Shoichi Hamada from the People Want Emotional Robots Book of Records named Paro as “the world’s JRA, government and industry are reluctant most therapeutic robot.” The robot reminds Perhaps the answer is a highly advanced to assist research for a limited and unproven patients of the pets or children they once kind of robot intelligence known as “kansei,” market. “Japan isn’t very good at manufac- cared for, says Shibata. “Paro is a kind of literally “emotion or feeling.” Kansei func- turing the kind of robots that won’t make a tions enable robots to recognize and convey profit,” he admits. Although, he adds, that emotion – something that could be invalu- might soon change when service robots Service Robots for able for service robots working and living start to make a profit. “After all, service ro- Personal/Domestic Use alongside humans. “People don’t react log- botics is a young and heuristic field; some- So far, service robots for personal and ically, they react emotionally – robots need one could produce a great application for domesticusearemainlyintheareas of domestic. Source: IFR Statistical Depart- to be able to adapt to that,” says Shuji Hashi- service robots tomorrow. It could be an en- ment, 2005 World Robotics Executive Summary moto, a researcher into kansei technologies tertainment robot, a companion robot, a and Director of the Humanoid Robotics In- commercial cleaning robot, a robot car, or Number of units stitute at Waseda University. Kansei robots something else entirely.” 4,500 4,000 could use vision systems to monitor human While we wait to find out, one thing is 3,500 expressions, gestures and body language. certain: Japan is looking forward to the ro- 3,000 Voice sensors could pick up on intonation bot boom. With its leading industrial robot 2,500 2,000 as well as individual words and sentences. sector, unrivalled electronics expertise and 1,500 Robots could sense human emotion through robot-loving population, the nation will be 1,000 wearable sensors that monitor pulse rate well placed to catch up quick. A 2004 Min- 500 0 and perspiration. istry of Economy, Trade and Industry (METI) Scientists at Meiji University in Tokyo white paper on the future of the Japanese Vacuum Entertainment cleaners, and have already created a robot that can re- economy predicts that the Japanese robot lawn leisure mowers robots spond with “feeling” to human speech. When market will grow to 15.8 billion dollars in the aptly named Kansei hears a word it 2010 and to 54.5 billion dollars in 2025. By Ə8SWRHQG Ə1HZLQVWDOODWLRQVŏ searches the Internet to find common as- then, it is predicted that three quarters of sociations. The robot then matches the re- the market will be for service robots. <

Credit Suisse Bulletin 4/07 Economy Literature 53

Essentials of Corporate Communication The Age of Turbulence A Helpful Overview of the Main Theoretical Models Adventures in a New World

By Cees van Riel and Charles J. Fombrun By Alan Greenspan Hardback edition Hardback edition 306 pages 531 pages ISBN 0-415-32826-8 ISBN 978-1-59420-131-8

Commercially driven organizations are convinced of the neces- $ODQ*UHHQVSDQZDVFKDLUPDQRIWKHUS)HGHUDO5HVHUYHIRU sity to publicly announce the nature of their activities and mis- 20 years, from 1987 through to 2006VRLWLVQRZRQGHUWKDW VLRQDGGUHVVLQJDWOHDVWWKHƟQDQFLDOZRUOGEXWLQPRVWFDVHV the economic advisor has much to say in his autobiography, also the media, the labor market, the public affairs domain, and ZKLFKLVOLNHWKUHHERRNVLQRQHKLVPHPRLUKLVFDUHHUDQGKLV PRVWRIDOOWKHLUFOLHQWVDQGHPSOR\HHV+RZHYHUWKHZLOOLQJ- YLHZRQWKHZRUOGHFRQRP\WRGD\+HEHJLQVE\JLYLQJLQVLJKW QHVVWRFRPPXQLFDWHGRHVQRWDOZD\VHQWDLOWKHDELOLW\WR LQWRKLV\RXWKLQ1HZ

The books reviewed can be ordered from www.buch.ch.

Publishing details: Publisher Credit Suisse, P.O. Box 2, 8070 Zurich, telephone +41 44 333 11 11, fax +41 44 332 55 55 Editors Daniel Huber (dhu) (Editor in Chief), Marcus Balogh (ba), Michèle %RGPHU PE -R\%ROOL MER 'RURWK«H(QVNRJ GH 5HJXOD*HUEHU UJ 0DQGDQD5D]DYL PDU $QGUHDV6FKLHQGRUIHU VFKL DQG$QGUHDV7KRPDQQ DWK E-Mail [email protected] Contributors to this issue1LFROH%DXPDQQ*LOHV.HDWLQJ6DUDK/XNDVKRN3DWWL00D[VHQ7RQ\0F1LFRO*DYLQ0HQ]LHV6HEDVWLDQ6FKLHQGRUIHU VGV DQG6WHYHQ6RUDQQRInternetZZZFUHGLW suisse.com/infocus Marketing Veronica Zimnic (vz) Proofreading text control, Zurich Translations&UHGLW6XLVVH/DQJXDJH6HUYLFHV LayoutZZZDUQROGGHVLJQFK'DQLHO3HWHUKDQV0RQLND+¦IOLJHU 0DQXHO6FKQR]3HWUD)HXVL SURMHFWPDQDJHPHQW  AdvertisingSDXOHWWRJPEK'DQLHO3DXOHWWRDQG3KLOLSS9RQDUEXUJ.OHLQVWUDVVH=XULFKWHOHSKRQHID[HPDLOSKYRQDU- [email protected] &HUWLƟHG:(0)LVVXH 145,733 Printing1==)UHW]$*=ROOLNRIHU$* Editorial committee5HQ«%XKRO]HU +HDGRI3XEOLF3ROLF\ 2WKPDU&XHQL +HDGRI%XVLQHVV6FKRRO 3ULYDWH%DQNLQJ,QVWLWXWH 0RQLND'XQDQW +HDGRI&RPPXQLFDWLRQV3ULYDWH%DQNLQJ 7DQ\D)ULWVFKH 0DUNHWLQJ3ULYDWH&OLHQWV 0DULD/DPDV +HDGRI)LQDQFLDO3URGXFWV ,QYHVWPHQW$GYLVRU\ +XEHUW /LHQKDUG $VVHW0DQDJHPHQW'LVWULEXWLRQ6HUYLFHV $QGU«V/XWKHU +HDGRI*URXS&RPPXQLFDWLRQV &KDUOHV1D\ORU +HDGRI&RUSRUDWH&RPPXQLFDWLRQV )ULW]6WDKHO &UHGLW6XLVVH(FRQRPLF5HVHDUFK  &KULVWLDQ9RQHVFK +HDGRI3ULYDWH %XVLQHVV%DQNLQJ$DUDX  113th year of publication LVVXHVSHU\HDULQ*HUPDQ)UHQFK,WDOLDQDQG(QJOLVK 5HSULQWLQJRIWH[WVSHUPLWWHGZLWKDFNQRZOHGJHPHQW RIVRXUFH Ŕ&UHGLW6XLVVH%XOOHWLQŕ 3OHDVHVHQGQRWLƟFDWLRQRIchanges of addressLQZULWLQJDFFRPSDQLHGE\WKHRULJLQDOHQYHORSHWR\RXU&UHGLW6XLVVHEUDQFKRUWR&UHGLW6XLVVH8/$=32%R[ 100, CH-8070 Zurich.

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Credit Suisse Bulletin 4/07 54 Leader Arthur Cohn

Credit Suisse Bulletin 4/07 Leader Arthur Cohn 55

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Interview: Andreas Schiendorfer $UWKXU&RKQLVRQHRI6ZLW]HUODQGŒVEHVWNQRZQDPEDVVDGRUV $QGQRWRQO\LQWKHƟOPZRUOG+LVSULQFLSOHVVHHPEDVLF EXWWKURXJKWKHPKHKDVVHHQVXFFHVVLQKLVFRQVLVWHQWSXUVXLW RIWKHP7KLVLQGHSHQGHQWƟOPSURGXFHUKDVQHYHUVWRSSHG GUHDPLQJDQGWKHUHIRUHKDVUHWDLQHGWKHRSHQQHVVRIDFKLOG

Bulletin: Maria Bello, the topics, the Oscars are very important. Today, William Hurt and 100EHVWƟOPVRIDOOWLPH,QLWLDOO\KRZHYHU My reservations always refer only to the two newcomers, Kristen Stewart and Eddie 31 distributors turned it down. choice of topic or audience, which I think is Redmayne. Chris Menges has won two Os-

Photo: Archiv Arthur Cohn Arthur Archiv Photo: WZRUHDVRQV)LUVWLWFRQILUPVWKDW\RXKDYH a local audience, then I feel that I’m on There are a lot of talented people around >

Credit Suisse Bulletin 4/07 56 Leader Arthur Cohn

today as well, both in front of the camera good film, but a mediocre director can’t and behind it. Let’s hope that more of them ruin a good screenplay either. Then there is begin to discover universal topics again. the cutting and editing. The film’s rhythm is :KDWGRHVWKHPDWHULDOQHHGWRKDYH RIWKHXWPRVWLPSRUWDQFH)RUWKLVUHDVRQ, WRDWWUDFW\RXULQWHUHVWŏDQGWKXVWKDWRID insist on the final cut in all my films, for ex- ZRUOGZLGHDXGLHQFH" ample, the right to decide the final version The subject matter must be new. I wouldn’t in the cutting room. make just a crime thriller or a western; there Al Pacino, were novel when my profession I am often confronted with VKHHQWHUHGWKHƟOPEXVLQHVV the films first appeared in movie theaters. unusual things. Of course, this openness DVDVFUHHQZULWHUDQGUHFHLYHGDQ2VFDU $QGWKH\DUHVWLOOXQLTXHWRGD\$VDQLQGH- must be complemented by very reliable, pre- IRUWKHYHU\ƟUVWƟOPKHSURGXFHGŏ pendent producer – I don’t have a company cise work. DERXWWKHOLYHVRIWKHLQGLJHQRXVSRSX or studio behind me – I must produce films Vittorio De Sica, with whom I made numer- GHOŒ2UGUHGHV$UWVHWGHV/HWWUHVWKH people in the audience. If the audience sees ous films, including the aforementioned “The KLJKHVWKRQRUWKDW)UDQFHFDQDZDUG a realistic world, the story line means some- *DUGHQRIWKH)LQ]L&RQWLQLŕ8QWLOKLVHDUO\ DIRUHLJQHU+HKDVZRQ2VFDUVIRUVL[RI thing very different in their lives than when death in 1974, he was my mentor and even KLVƟOPVDQGDQRWKHUWZRZHUHQRPL the scenes are impossible to believe. There- today he is still my role model. I also owe my QDWHG+LVƟOPVKDYHDOVRJDUQHUHG *ROGHQ*OREHVDQGDZDUGVDWWKHƟOP fore, there are no special effects in my parents a great deal. They gave me roots IHVWLYDOVLQ9HQLFHDQG%HUOLQ7KH films and no imaginary computer-animated and they gave me wings: the traditional val- PD\RUVRI/RV$QJHOHVDQG6KDQJKDL creatures. ues of family background and the openness KDYHERWKGHFODUHGDQŔ$UWKXU&RKQ

Credit Suisse Bulletin 4/07 Leader Arthur Cohn 57

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,Q)HEUXDU\2008, the Academy Awards of However, there are lots of winners – in par- Merit, known to everyone as the Oscars, will ticular the Walt Disney studio, which has be awarded for the 80th time. About one been nominated no fewer than 64 times and billion people will view this spectacle. won 26 Oscars. Some Oscars also went to This was not the case on May 16, 1929. films that Mickey Mouse’s creator produced An award presented in the context of a pri- himself. The most-honored woman is Edith vate dinner interests nobody, especially if the Head, a costume designer who won eight names of the 12 winners have already been Oscars between 1950 and 1974. Arthur made known in a newspaper announcement. Cohn is also up there among the leaders as This changed in 1941, when the Academy the most successful independent film pro- started to keep the names of the winners in GXFHUUHFHLYLQJDZDUGVIRUVL[ILOPV VHH a sealed envelope like buried treasure – and, ER[ 2WKHU6ZLVVZLQQHUVEHIRUHKLPZHUH even more dramatically, in 1953, when the the Praesens film “Zurich” and the 1944 presentation of the awards was broadcast drama “Marie Louise” directed by Leopold on television for the first time. There are Lindtberg, which won an Oscar for its various versions of the story of how the Os- VFUHHQSOD\E\5LFKDUG6FKZHL]HU,Q1982, FDUJRWLWVQDPH)RUH[DPSOHRQVHHLQJWKH 0DUNXV,PKRIŒVŔ7KH%RDW,V)XOOŕORVWRXW statue, the librarian of the Academy, Mar- WR,VWYDQ6]DERŒVŔ0HSKLVWRŕEXWLQ1991 garet Herrick, is said to have exclaimed: “It ;DYLHU.ROOHUŒVŔ-RXUQH\RI+RSHŕ SURGXFHG looks just like my uncle Oscar!” E\3HWHU &KULVWLDQ)XHWHUDQG$OIL6LQQLJHU  Over the course of the decades, there ZRQWKH2VFDUIRUWKH%HVW)RUHLJQ/DQ- has been many an injustice. Orson Welles’ JXDJH)LOP PDVWHUSLHFHŔ&LWL]HQ.DQHŕ  , for in- The most successful films in the history stance, now regarded as the best American of the Academy Awards are “Ben Hur”  , film ever made, failed to win an Oscar. And “Titanic”   and “The Lord of the Rings:  7KH&KRUXV Sergio Leone’s classic “Once Upon a Time The Return of the King”  , each of which /HV&KRULVWHV LQ$PHULFDŕ 1984 ZDVQRWHYHQQRPLQDWHG won 11 awards, followed by “Gone with the  %HKLQGWKH6XQ Alfred Hitchcock, on the other hand, was Wind,” the 1939 classic, which won 10 Os- $EULO'HVSHGD©DGR  nominated six times, but all he ever received FDUV IURPDUHFRUG15QRPLQDWLRQV 7KH  2QH'D\LQ6HSWHPEHU was the honorary Oscar, the Irving G.Thal- complete “Lord of the Rings” trilogy received  &HQWUDO6WDWLRQ berg Memorial Award, in 1967. 30 nominations and won 17 Oscars. &HQWUDOGR%UDVLO All in all, though, the Oscar is an ex- The most-nominated actress is Meryl  :KLWH/LHV tremely reliable yardstick of artistic achieve- Streep with 14 nominations and two Oscars;  7ZR%LWV ment in the preceding year, as it is awarded Katherine Hepburn, on the other hand, won  $PHULFDQ'UHDP by members of the Academy of Motion Pic- the greatest number of Academy Awards  'DQJHURXV0RYHV ture Arts and Sciences $03$6 , currently with 12 nominations and four Oscars. Among  $GRSWLRQ /Œ$GRSWLRQ numbering 5,773, under their president, the men, Jack Nicholson leads with 12 nom- producer Sid Ganis, and two vice presi- inations and three Oscars. To date, George  %ODFNDQG:KLWHLQ&RORU 1RLUVHWEODQFVHQFRXOHXU dents, actor Tom Hanks and the producer Bernard Shaw is the only person who has Bob Rehme. There is, in a manner of speak- had the honor of receiving both a Nobel  $%ULHI9DFDWLRQ 8QDEUHYHYDFDQ]D ing, no loser in this award ceremony. In fact, 3UL]Hin 1925 and an Academy Award in  :HŒOO&DOO+LP$QGUH the original formula “And the winner is ...” 1938. /RFKLDPHUHPR$QGUHD was changed in 1989 to “And the Oscar There are about 30 categories in total, of  7KH*DUGHQRIWKH)LQ]L  &RQWLQL goes to ...” That said, some who never win which the following five are regarded as the ,OJLDUGLQRGHL)LQ]L&RQWLQL an Oscar may feel they are to some extent most important: best picture, best direction,  6XQƠRZHU ,*LUDVROL ORVHUVVXFKDV3HWHU2Œ7RROH 8 nomina- best actor, best actress, and best screen-    $3ODFHIRU/RYHUV $PDQWL WLRQV DQG5LFKDUG%XUWRQ 7 7KHVDPH SOD\ HLWKHURULJLQDORUDGDSWHG 7KUHHILOPV r | Cohn Arthur Archiv holds for Steven Spielberg’s “The Color have won in all five categories: “It Happened  :RPDQ7LPHV6HYHQ 3XUSOHŕ 11 nominations in 1986 +HUEHUW One Night”  Ŕ2QH )OHZ 2YHU WKH  3DULV6HFUHW 5RVVŒVŔ7KH7XUQLQJ3RLQWŕ 11/19 7 8 , and Cuckoo’s Nest”  , and “Silence of the  7KH6N\$ERYHWKH0XG%HORZ Martin Scorsese’s “Gangs of New York” Lambs”  . Perhaps the same phenom- /HFLHOHWODERXH

Photos: Rainer Wolfsberge Rainer Photos: 10/2002  enon will happen again in 2008. VFKL ZRQDQ2VFDU QRPLQDWHG

Credit Suisse Bulletin 4/07 58 At a Click www.credit-suisse.com/infocus

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Infected? [email protected]

Are you one of those people who plug in overtime galore. Twitchy-fingered people He didn’t act out of malice, but simply want- a USB stick and press ctrl S every 200 know that for a fact. At this point, anyone ed to play a practical joke – albeit poor characters or so? What’s even worse: Are who has ever lost documents full of pains- one – on his fellow students. Unlike today’s you overcome by feelings of relief after- takingly generated content because a viruses, the Elk Cloner wasn’t meant to ward? – Don’t worry, you’re not alone. nasty virus has eaten its way through their cause serious damage: When an infected Although this kind of behavior could computer will nod in recognition and press floppy disk was inserted the Elk Cloner WHFKQLFDOO\EHFODVVLƟHGDVDSDWKRORJLFDO ctrl S again on their PC. That’s how bad simply caused the screen to go black fol- disorder of a possible obsessive-compul- things get. lowing a failed reboot attempt, and then sive nature, most personal computer (PC) But it wasn’t always that way. There displayed Skrenta’s poem with the title “Elk users really don’t care. They go on conscien- was a time when a virus still meant some- Cloner: The program with a personality.” tiously performing saves. It could be argued thing medical. The word itself may never It’s just a pity that what was once the that saving is like breathing: It’s something have heralded anything good, but it cer- creative outcome of one young guy killing we do automatically. If irregularities occur, tainly had nothing to do with IT crashes. time later became the inspiration for the there may be consequences – rhythmic dis- The “pre-viral” age ended exactly 25 years destructive schemes of many others. The turbances of this kind (in breathing or in ago (which, in a way, makes this year an ƟQDQFLDOGDPDJHSUHVHQWO\FDXVHGE\YL save operations) can lead to data loss or a anniversary year). In 1982, Richard Skren- ruses and worms runs into the billions. complete system crash. From a physiolog- ta, a 15-year-old high school student in And, let’s not forget all of the borderline ical point of view this could ultimately mean Pittsburgh, USSURJUDPPHGWKHƟUVWERRW obsessive-compulsives frantically pressing “the end,” from a work point of view “merely” sector virus for the Apple II, the Elk Cloner. ctrl S that are another lasting result.

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In the forum, experts answer your questions on the subject Online Forum: Sustainable Investments of sustainable investments.

Times change. And that’s the way it should be. Changing trends – city of global resources. Today’s investors thus want to know whether economic, ecological, demographic or societal – always exactly what areas they are putting their money into, so that they emerge particularly strongly in the business world. Just a few can act in a responsible manner. Sustainable investments are years ago, for example, green funds were reputed to be bad therefore attracting the interest of companies, fund managers, performers, with the result that only a small number of particu- and investors alike. That’s why In Focus, the online magazine of larly determined investor groups showed any interest in the first Credit Suisse, is dedicating its next forum to the topic of sustain- sustainable investments. These were investors who gave clear able investments. priority to “the good cause” of social responsibility over financial The procedure is simple: Just submit your question at attractiveness. www.credit-suisse.com/responsibility/en. Following a short time But things have changed slightly in recent years. Thanks to delay, the questions will be answered by proven experts in the well thought-out, broadly diversified investment concepts, the field. You will be notified by e-mail as soon as the reply to your risks associated with sustainable investments have now been question has been received. At the same time, the question and largely minimized. Accordingly, the range of products has, in the answer will be published on the Internet (without mention of your meantime, taken on impressive dimensions. e-mail address). However, the fact that today’s society has embarked on a The forum starts on October 29, 2007, and will remain online process of rethinking is of almost greater consequence in this for three weeks. mar

context. People have generally become more aware of the scar- Find out more at www.credit-suisse.com/responsibility/en Cédric WidmerPhotos: | Photodisc, Getty Glen Allison, Images

Credit Suisse Bulletin 4/07 Daniel Jaquet

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