32 THURSDAY, JULY 30, 2009 THE WALL STREET JOURNAL. Leading the News: British Airways presses Boeing to renegotiate payments on Dreamliners

VOL. XXVII NO. 124 EUROPEEUROPE THURSDAY, JULY 30, 2009 europe.WSJ.com

Œ3 What’s Europe’s banks still lending shy

- Germany 7 7

kr 29 News Œ3 Sanofi is close to announc- ECB says borrowers could face tougher credit standards this quarter; dilemma for governments - France

- Sweden ing a deal to buy Merck’s half

Œ3 of a joint venture that makes European banks contin- euro zone further tightened faces in ensuring banks meet banks to offer more and because of its hefty stakes in Œ3.20 drugs for animals. News of ued to lend only reluctantly their credit standards in the their lending promises. cheaper loans could backfire, two of the country’s biggest - Spain the potential deal came as at the midyear point, flying in second quarter, the European For more than a year, cen- potentially delaying their re- banks: Lloyds Banking Group - Finland Sanofi reported a 4.9% rise in the face of central-bank poli- Central Bank said in a report tral banks and governments covery and depressing share PLC and Royal Bank of Scot- second-quarter profit. Page 6 Dkr 25 released Wednesday, and com- have provided banks with li- land Group PLC. It needs lend- Œ3.32/Sk 100 n Microsoft and Yahoo By Margot Patrick and panies and households could quidity and, in some cases, re- Deflation returns ing to increase to help the formed a 10-year Internet- Laurence Norman in face still-tougher require- capitalization to get credit U.K. recover in time for an - Denmark

- Slovakia n search pact, uniting against London, and Nina ments this quarter. flowing again to revive eco- German consumer prices fell election due by mid-2010, but Œ3

Kc 110 rival Google. Page 5 Koeppen in Frankfurt In the U.K., which is out- nomic activity. But fragile bal- for the first time since 1987 .2 it also has taxpayer money at side the euro zone, the Bank ance sheets and worries of ris- risk if bad loans pile up. n - Portugal BHP moved forward in its cies and state aid designed to of England said Wednesday ing consumer defaults have prices if the proportion of “The government needs to effort to change the way

Zl 12 spur lending and reverse the that consumer lending hit a caused many banks to hold bad loans keeps rising. balance out its needs. It

- Czech Republic iron ore is priced, settling for economic downturn. low in June, underlining the back. That puts the U.K. govern- wants to make sure the banks a 33% drop in prices with - Poland Banks in the 16-country challenge the government Analysts say that forcing ment in a particular dilemma Please turn to page 31

HRK 22 some customers. Page 5

Nkr 29 n Steelmaker ArcelorMittal - Croatia

Œ3 reported a quarterly loss but - Norway said a recovery is strengthen- Œ3 ing outside of the U.S. and - Belgium BMW will park its Formula One racing team Western Europe. Page 5 Œ3 By Marcus Walker n - Netherlands U.S. stocks fell on worry £1.50 Œ3 that economic conditions will BMW AG said it will leave restrain commodity demand Formula One motor racing at and hurt profits of oil firms. the end of the 2009 season, an- - Luxembourg Europe shares rose. Page 20 other sign of auto makers’ – United Kingdom n Crude prices slid 5.8% to growing difficulty in justifying $2.20 L£ 6000 $63.35 a barrel on Nymex the sport’s high costs at a time after a surprising rise in U.S. when global auto sales are

- Lebanon oil inventories. Page 22 slumping. Œ3 n German consumer prices - U.S. Military (Eur) - Italy fell in annual terms for the Reversal of fortune Œ3

TL 4.5 first time in years in July, n Daimler swung to a loss in the amid collapsing energy prices second quarter .7......

- Turkey and the recession. Page 2 - Ireland (Rep.) n The pace of decline in U.S. Although a marginal sport S£ 210

Ft 650 economic activity has “begun in the U.S., Formula One has es-

- Syria to stabilize,” a Fed report said. tablished itself as the pinnacle

SF 5 A key gauge of business invest- of international motor racing - Hungary

Œ3 ment spending rose. Page 4 and attracts huge television au- diences in Europe, the Middle n Support slipped for For information or to subscribe, visit www.services.wsje.com or call +44 (0) 207 309 7799 — Austria Greece Switzerland East and Asia. That has made it Obama’s health plan, espe- cially among the insured, and a big business, with sponsor- his approval rating fell to ship and television deals total- 53% in a new poll. Page 4 ing billions of dollars. But the loss of a team with n Daimler reported a $1.45 bil- BMW’s cachet could raise lion loss in the second quar- doubts about other major car ter, hurt by weak demand makers’ commitment to the Reuters for luxury vehicles. Page 7 Please turn to page 31 Flames shooting from the car of BMW Sauber Formula One driver Robert Kubica in Bahrain in April. BMW is pulling out of the sport. n The FDIC is poised to start splitting failed banks into good and bad pieces, an Inside effort to lure buyers. Page 19 Judge sets status call n Santander posted a4% Runs Oracle drop in second-quarter profit, as resilient results in Europe in UBS vs. U.S. case * largely offset declines in Latin America. Pages 19, 20 A WSJ NEWS ROUNDUP 10x Faster Ifasettlementisn’tformal- n Police blamed ETA for a A Miami judge said he ized before Friday, there are car bomb that destroyed a would reassess the progress two possible outcomes. One is police barracks in northern of talks between UBS AG and that the two sides agree they The World’s Fastest Spain, injuring 60 people. the U.S. Internal Revenue Ser- arenear a settlement, inwhich vice ahead of a major court case another postponement is Culture clash Database Machine n The EU filed a trade com- hearing tied to possible tax likely. The other outcome is Brokerage Nomura stumbles • plaint against the Philippines evasion by U.S. citizens on Hardware by HP that negotiations break off in its new global push over taxes the nation charges Monday. without a settlement, which News in Depth, pages 16-17 • Software by Oracle on distilled-spirits imports. Judge Alan Gold offered to means the court will begin n A Sudan journalist facing postpone the court hearing by hearing the case Monday. 40 lashes for wearing pants a week, a UBS spokesman UBS and the Swiss govern- Markets in public said she is resigning said. Neither side took up the ment have claimed in court fil- 4 p.m. ET *But you have to be willing to from a U.N. job so she can offer. ings and public statements PCT spend 50% less on hardware. CLOSE CHG challenge the dress-code law. The next status call be- that UBS can’t provide access tween the two parties and to 52,000 accounts held by DJIA 9070.72 -0.29 Editorial&Opinion Judge Gold on Friday coin- U.S. citizens at UBS because Nasdaq 1967.76 -0.39 cides with the meeting in that act would violate Swiss DJ Stoxx 600 220.37 +0.84 FTSE 100 4547.53 +0.41 Israel vs. Iran Washington between the law. The Swiss government 10x faster based on comparing Oracle data warehouses Swiss and U.S. foreign minis- has even gone as far as to say DAX 5270.32 +1.85 on customer systems vs. HP Oracle Database Machines. Time is running out for Potential savings based on cost/terabyte comparison with an attack on the nuclear ters, highlighting how the it would seize UBS data to pro- CAC 40 3365.62 +1.04 selected competitor systems; Oracle Database and options installations. Page 14 case has snowballed into a dip- tect its country’s privacy laws. licenses not included. Actual results and savings may vary. Euro $1.4063 -0.81 lomatic matter of high impor- A spokesman for Switzer- Nymex crude $63.35 -5.77 Copyright © 2009, Oracle. All rights reserved. Breaking news at europe.WSJ.com tance for Switzerland. Please turn to page 31 2 THURSDAY, JULY 30, 2009 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. THURSDAY, JULY 30, 2009 31 LEADING THE NEWS FROM PAGE ONE German prices register Europe’s banks stymie efforts to spur lending IMF says it plans Political shift in Moldova Continued from first page this problem…for months now while lending rates reflect higher costs body it created in October to help to add loan aid do lend, but at the same time also jobs and businesses continue to be and default risk. companies struggling to obtain bank first decline since 1987 wants to protect its investments by lost. Alistair Darling has been asleep The ECB’s euro-zone lending sur- loans would operate until at least Opposition trounces keeping the banks profitable,” said on the job and the public will take vey said the second quarter was the the end of 2010. French Finance Min- to poor countries By Geoffrey T. Smith Irfan Younus, an analyst at NCB his synthetic anger with a pinch of eighth straight that banks tightened ister Christine Lagarde said the By Tom Barkley ruling Communists, Prices Plunge Stockbrokers. salt,” said Philip Hammond, the No. their lending standards, although credit-conciliation body helped un- FRANKFURT—German con- On Wednesday, the Bank of Eng- 2 person on the opposition Conser- the pace of the tightening appeared freeze loans worth a total of Œ9 bil- WASHINGTON—The Interna- German consumer prices fell in exit-poll data show sumer prices fell in annual terms for land said net consumer lending vative party’s treasury team. to slow. The ECB most recently in- lion for about 9,000 companies. tional Monetary Fund said it will sig- annual terms for the first time the first time in more than 22 years grew by £414 million ($681 million) Banks argue that their cost of fi- cluded an injection of Œ442 billion Data released last week by the nificantly ramp up assistance to low- in over 22 years in July due to By Marc Champion in July, amid collapsing energy in June, the smallest increase since nancing has increased in spite of ($626 billion) in one-year funds into Bank of France showed that the income countries to as much as $17 declining energy prices and the prices and the global recession, the 1993 when record keeping began. record-low interest rates. Wholesale the banking system in late June. amount of credit to both households billion over the next five years, with global recession Opposition parties in the ex-Soviet Federal Statistics Office reported. Economists had expected a £900 mil- funding is harder to get, and competi- ECB President Jean-Claude and companies continues to rise, but favorable terms that include charg- nation of Moldova won enough votes Prices fell 0.1% from their level in 4% lion increase. tion for customer deposits has inten- Trichet has stepped up appeals for at a slower pace. Outstanding mort- ing no interest through 2011. BOE money-supply data showed sified. The chances of customers de- to defeat the ruling Communists in June, and 0.6% from July 2008, 3 banks to pass on liquidity injections, gage loans rose 5% in June to Œ713 bil- Exceeding the call of Group of 20 elections Wednesday, according to Destatis said. The data may usher in that lending to nonfinancial corpora- faulting on their borrowing is simply and the German finance minister lion. That compares with rises of 5.7% leaders in the spring to double con- exit polls, in a major potential upset what European Central Bank offi- 2 tions shrank 0.2% on the month and higher in a recession, too, leading to has threatened banks with unspeci- recorded in May and 6.1% in April. cessionary lending to $6 billion over that could have lasting effects in a cials and analysts expect to be a 1.2% on the year, the weakest results higher charges on loans. fied government action if lending In Italy, the credit squeeze has be- the next two years, the IMF’s execu- 1 country torn between East and West. brief period of deflation in Ger- since record keeping began in 1997. Among European banks report- doesn’t increase. come a particularly pressing chal- tive board also approved providing The four opposition parties won many, and across the euro zone in Chancellor of the Exchequer ing second-quarter results, Spanish “Access to credit has become lenge for small and midsize compa- 0 up to $8 billion over that period. 53.9% of the vote, according to an exit general. Alistair Darling met with bank banks say that lending has fallen be- clearly more difficult,” Ifo Institute nies. Most of them aren’t listed on “The G-20 asked the fund to help poll of Moldova’s Institute for Public German prices last fell in year-to- bosses on Monday to find out why cause demand is down as the reces- President Hans-Werner Sinn said, stock exchanges and therefore de- -0.1 respond to the global economic cri- Politics, against 41.7% for the Commu- year terms in 1987. Then, as now, a 2008 2009 smaller firms were still struggling sion cuts into the real-estate market commenting on the think-tank’s lat- pend on bank loans to fund their op- sis, which has hit the low-income na- nist Party. If the mainly pro-Euro- sharp fall in the price of energy was Source: German Federal Statistics to get access to affordable loans. He and business expansion. est credit constraint survey for Ger- erations. Reuters tions so hard, and we are respond- pean opposition can unite to form a largely responsible. Crude oil prices warned them that the government Executives at Banco Santander man industry and trade, also pub- Lending, which grew at a steady ing with a historic set of actions in government, that should give it some An elderly Moldovan woman leaves a booth Wednesday after filling in her ballot peaked at over $147 a barrel in the would monitor lending activity. SA and Banco Bilbao Vizcaya Argen- lished Wednesday. “Despite the ex- clip in the past decade, has shrunk. terms of support for the world’s 56 seats in the Moldovan parliament, at a polling station in Dorotchaia village. Exit polls gave victory to the opposition. summer of 2008, and have more 2009 and hadn’t ventured a forecast The country’s four major banks taria SA said this week they felt com- pansive monetary policy of the ECB, Bank loans to the private sector poor,” said IMF Managing Director against 45 for the Communists. than halved since then. Vehicle-fuel for next year. contend they are doing their part to fortable reporting zero lending banks have become more restrictive dropped 0.9% in May from a year ear- Dominique Strauss-Kahn. “The new “This would be a major change” prices at the pump have fallen by be- Germany faces “a long march lift the economy and will give fur- growth while the overall economy is in granting credit,” Mr. Sinn said. lier, according to the Bank of Italy. resources and new means of deliver- from elections in April, in which the polls. The election is being moni- election was forced not by the pro- tween 19.6% and 20.7% in the last 12 through an economic valley without ther details on loan volumes and in a recession. Despite low lending The ECB report showed that 21% Davide Stroppa, a Milan-based ing them should help prevent mil- Communists won 60 seats, said Vlad tored by some 3,000 observers. The tests, but by the fact that the Com- months, Destatis said. an end in sight,” DIW president margins when they report first-half volumes, all Spanish banks reported of the banks surveyed had tightened economist with UniCredit, said he lions of people from falling into pov- Lupan, a political analyst in the capi- exit poll had a margin of error of plus munists failed to muster the 61 votes The data also reflect the unwind- Klaus Zimmermann said and results next week. The British Bank- double-digit growth in lending in- standards applied to the approval of expected another 12 months to pass erty.” tal, Chisinau, and a former Moldovan or minus two percentage points. needed to elect a president. No mat- ing of a spike in global food prices in warned of a sharp rise in corporate ers Association said this week that come in the quarter. loans or credit lines to companies in before banks began to significantly diplomat. April’s elections were fol- In addition, one of the opposi- ter which side Mr. Lupu joins, it ap- late 2007 and 2008. Prices for vari- insolvencies and unemployment in more loans to small businesses in Those kinds of results raise com- the second quarter, compared with ease lending restrictions. “In abso- The additional funding comes as lowed by allegations of ballot fraud, tion parties, the Democrat party, pears unlikely they will be able to ous food groups were between 1.2% the next year. DIW estimated that June are a sign of easing credit con- plaints by policy makers that banks 43% in the preceding period. But lute terms, we’re still dealing with a the global crisis increasingly shifts rioting and a government crackdown was formed by a senior Communist reach the 61-vote threshold. and 3.3% lower than in July 2008, the number of unemployed will aver- ditions. aren’t fully passing on to customers none of the banks surveyed said very tight stance.” from a credit crunch among markets on the opposition. party member who defected after If the exit-poll results are con- Destatis said. age over 4.5 million next year, or But the political opposition says the sharp cuts in the cost of short- they have eased rules. —Stacy Meichtry in Rome and in mostly developed countries to a Mr. Lupan cautioned, however, the April elections. Marian Lupu firmed, Mr. Lupu, who says he wants In contrast with 1987, however, more than 10% of the work force. the program isn’t working. term financing banks receive from In France, the government said David Gauthier-Villars in Paris brake on the global trade and invest- that there were again widespread re- was the Communists’ top reformer, partnership with both the European the German economy is now experi- The headline annual inflation “They have been talking about the central banks. Banks say their Monday that the special-purpose contributed to this article. ment flows that many low-income ports of ballot fraud, indicating that and it is unclear which side his party Union and Russia, looks set to have encing a prolonged and painful rate is likely to turn positive again af- economies depend upon. the final results might not be as fa- might join to form a coalition. considerable influence in the choice slump. The influential DIW research ter “two or three months” and be The IMF has estimated that 22 vorable to the opposition as the exit Wednesday’s repeat of the April of the next government. If neither institute, one of half a dozen regu- clearly above zero by the end of out of 71 low-income countries will side can elect a new president, the larly advising the government, said 2009, as annual comparisons start Pit crews require at least $25 billion in addi- new government would rule while Wednesday that Europe’s largest taking into account the bursting en- tional assistance this year, while BMW to park its Formula One team 2009 Formula One teams with car outgoing Communist President economy would shrink by 6.4% this ergy-price bubble in the second half warning that a more severe global makers as major shareholders: More Turkish rate cuts projected Vladimir Voronin remains in power year, and grow by an anemic 0.5% of 2008, Alexander Koch, an econo- Continued from first page use the money it previously spent up a rival race circuit before a com- recession could lift the financing until January, the earliest when a next year. The DIW had previously mist with Unicredit subsidiary Hy- sport, adding to its woes, which in- on Formula One to promote the “sus- promise was reached last month. n Scuderia Ferrari need for that group fivefold. Turkey’s central bank, which has that “further measured rate cuts will further election might be held. clude declining attendance, internal tainability and environmental com- In addition, the recession and expected a contraction of 4.9% for povereinsbank in Munich, said. n cut interest rates more aggressively be necessary in the near term unless a Still, Mr. Lupan said the exit-poll power struggles and a poor environ- patibility” of its road cars. high ticket prices have led to empty McLaren-Mercedes than any other central bank, signaled robust recovery” emerges. data itself reflect a significant mental image. The news overshad- The auto maker doesn’t disclose grandstands at some races this year, n BMW-Sauber that further monetary easing is likely. Weak demand will likely persist change in Moldovan society. In the owed Wednesday's announcement its Formula One spending, but its while bad publicity over the private CORRECTIONS & AMPLIFICATIONS n In the latest set of Monetary Policy for the next two years and should months since April, he said, the Com- that seven-time Formula One world two-car team has a budget of lives and political opinions of the Renault U.K. study finds Committee minutes, published late push prices lower, according to the munists have lost the argument champion Michael Schumacher will around $335 million this season, ac- sport’s top administrators have n Toyota Tuesday, the central bank said it will bank’s inflation report, which calcu- over who was to blame for the riot- A Marketplace article Wednes- tions Wednesday incorrectly called make a comeback for the Ferrari team cording to Formula Money, an an- hurt Formula One’s image. limited benefits be “necessary to maintain an easing lated a 70% chance inflation will slow ing and ensuing police crackdown in day said Heineken NV’s DraughtKeg the subsidiary Hitachi Maxwell Ltd. as a stand-in for injured driver Felipe nual study of the sport’s finances. In April Daimler’s worker repre- Other teams: bias for a long period” and envisaged to 5.3% next year and 4.9% in 2011. April, when two people were killed. generally is designed to have its con- Massa. BMW’s global car sales are down sentatives called on the company to n Red Bull Racing tents consumed all at once, unless The Congressional Hispanic BMW’s withdrawal follows that of by about 25% this year, forcing it to end its involvement in Formula One, in organic food n drinkers buy an optional Beer- Caucus has 23 members in the Honda Motor Co. last year, and could slash costs. In addition, the compa- where it is a major shareholder in Scuderia Toro Rosso By Tess Stynes Tender countertop chilling system, House of Representatives. A chart increase pressure on other manufac- ny’s Formula One team has failed to the McLaren-Mercedes team. Like n Brawn GP INDEX TO BUSINESSES but failed to note that the product accompanying a News In Depth arti- turers, including Daimler AG’s Mer- live up to expectations that it could BMW, Daimler is hurting from weak A group of British researchers n Williams stays fresh for 30 days in a refrigera- cle Tuesday about Blue Dog Demo- cedes-Benz unit, Toyota Motor Corp. be a top contender this year. car sales, including in the troubled concluded that organic foods aren’t This index of businesses mentioned in today’s issue of The Wall Street Journal Europe is intended to include all significant references to compa- tor or cooler after it is tapped. crats in the House misidentified the and Renault SA, to reduce or end their While the global recession batters U.S. market, and is trying to cut bil- n Force India nutritionally superior to their con- nies. First reference to these companies appear in boldface type in all articles except those on page one and the editorial pages. caucus as the New Democrat Coali- involvement in Formula One. auto sales, the cost of winning on the lions of euros of annual costs. ventionally produced cousins after Hitachi Ltd. plans to buy all the tion. The New Democrat Coalition, “After Honda and BMW, the dan- race track has soared, with top teams Daimler CEO Dieter Zetsche said reviewing 50 years of published lit- Abu Dhabi National Bayer AG...... 8,20 Construction Heineken.2...... Oaktree Capital.25 ...... shares it doesn’t own in five subsid- which has 71 members, was cor- ger exists that others will pull out spending over $400 million a year on Wednesday that the company has to comment on its team’s future. erature on the topic. Energy.2...... 3BBMG .2...... 4Engineering.24 ...... Hershey.8...... Packet Forensics.29 ...... iaries, including Hitachi Maxell Ltd. rectly identified in an earlier entry too,” said Niki Lauda, an Austria rac- technology and star drivers. Formula no plans to follow BMW and leave Managers at Renault have pri- However, the review didn’t ad- AkzoNobel...... 8,20 BG Group.2...... 5Cisco Systems.29...... Honda Motor ...... 7,31 PennyMac Mortgage A Corporate News article in some edi- in the chart. ing legend and three-time Formula One’s high-tech, single-seater cars Formula One, but that it has already vately expressed doubt about dress any contaminants or chemical Alcoa .2...... 0BHP Billiton ...... 5,20,24 CIT Group .25...... IAC/InterActiveCorp.8 ..... Investment Trust.22 .... One world champion. “You need sev- zip around twisty tracks at speeds of trimmed its spending on the sport whether the sport serves much pur- residue connected with different agri- Allianz SE.2 ...... 5BMW .1...... Citigroup .2...... 2Industrial & Commercial PetroChina.2 ...... 4 eral competing manufacturers to up to 350 kilometers per hour, with by 30% from last year. pose for a maker of small, inexpensive cultural production methods. One of AMR .3...... Boeing .3...... CME Group.25 ...... Bank of China.24...... Peugeot .2...... 0 create the marketing buzz. If one teams trying to gain an edge through A senior Toyota executive said cars. When racing results are poor, themain selling points of organic food ArcelorMittal ...... 5,8,20 British Airways ...... 3,8 Comcast Corp..29 ...... Infineon Technologies.8 . Porsche Automobil INDEX TO PEOPLE more manufacturer quits, the sport complex aerodynamics and other en- the company has no intention of the question mark grows, say people is the absence of chemical additives. Holding.7...... Avago Technologies.22 .... Cadbury .8...... ConocoPhillips ...... 8,20 Inpex .2...... 4 PSA Peugeot-Citroën.7.. . will really hit the brakes,” he said. gineering innovations. That arms quitting. But the cost pressure that familiar with the company’s thinking. “The lack of nonorganic chemi- Aviva .2...... 4Canon Inc..24 ...... Credit Suisse Group.22 .. IntercontinentalExchange This index lists the names of businesspeople and government regulators Falling sales, poor racing results, race has greatly pushed up costs. prompted Honda and BMW to quit The commitment of the sport’s cals and pesticides on organic foods Cumberland .2...... 5Randstad Holding.8 ...... Banco Bilbao Vizcaya Capmark Financial.22 ...... Reckitt Benckiser.8 ...... who receive significant mention in today's Journal. and the mismatch between Formula The sport has also been rocked also led Toyota to stop hosting For- most famous team, Ferrari, is less in is what the appeal is,” Brian Todd, Argentaria ...... 20,31 Caterpillar.20 ...... Pharmaceuticals.22 ...... Investec .2...... 3 Renault ...... 20,31 For more people in the news, visit One’s gas-guzzling extravagance and by rancor between its parent body, mula One races at the Fuji Speedway doubt, since racing prowess has his- president of the Food Institute, an Banco de Sabadell.20.... . CDC Software.2 ...... 2Daimler ...... 7,20,31 Japan Petroleum Deutsche Bank ...... 3,22 Exploration.24 ...... Rio Tinto ...... 5,24 1 CareerJournal.com/WhosNews BMW’s quest for a greener image all the Fédération Internationale de circuit, which Toyota owns. torically been essential to the com- Elmwood Park, N.J., trade associa- Banco Espanol de Centerbridge Partners.25 . Royal Bank of Scotland Deutsche Börse Group 25 JetBlue Airways.3 ...... played a role in the German auto mak- l’Automobile, and the competing A spokesman for Renault, whose pany’s image and road-car business. tion, said in response to the study. Credito .2...... 0Chevron ...... 11,20 Group .1...... Dollar General.22 ...... Jiangxi Copper .24...... er’s decision, company officials said. teams over spending limits pro- Formula One team has struggled —Davide Berretta The study by researchers at the Banco Popular Espanol 20 China Construction Bank Royal Caribbean Cruises Kohlberg Kravis Roberts Akarli, Ahmet.2 ...... Jiampietro, Joseph.19 ...... Shibata, Takumi.1 ...... 6 BMW Chief Executive Norbert posed by the FIA. A majority of since winning back-to-back champi- and Norihiko Shirouzu Banco Santander.31...... 2...... 4Dongfeng Motor Group .7 .2...... 0 London School of Hygiene & Topical .2...... 2 Ballmer, Steve.5...... Jotwani, Tarun.17 ...... Simpfendorfer, Ben.24 ...... Banco Santander (Spain) China Cosco Holdings .24 DreamWorks Animation Royal Dutch Shell.11 ...... Bartz, Carol .5...... Kelly, Gary .3...... Sinn, Hans-Werner.31 ...... Reithofer said his company would teams threatened to leave and set onships in 2005 and 2006, declined contributed to this article. Medicine was published Wednesday SKG .2...... 0Lazard .2...... 0 .2...... 0China Petroleum & Ryanair Holdings.8 ...... Berk, Murat .2...... Lagarde, Christine.31...... Sprecher, Jeffrey.25 ...... in the American Journal of Clinical DSM .2...... 3Lloyds Banking Group.1 . Bank of America.... . 16,22 Chemical.24 ...... Sandvine .2...... 9Berman, David.25...... Lauda, Niki .31...... Stearns, Eugene.31 ...... Nutrition. A representative for the London Stock Exchange Bankinter .2...... 0China State easyJet .8...... Sanofi-Aventis .6...... Beutel, Peter.2...... 2Lauria, Thomas.25 ...... Steer, Adam.25 ...... London School of Hygiene & Topical Group .2...... 3 Stitzer, Todd .8...... Emdeon .2...... 2 SAP .2...... 0Bhattal, Jasjit .16...... Leahy, John .3...... Lufthansa .8...... Stroppa, Davide.31 ...... Medicine couldn’t be reached. Eni .1...... 1 Security Bank.20 ...... Bouzouba, Rachid.17...... Matsuba, Naoki.17 ...... THE WALL STREET JOURNAL EUROPE (ISSN 0921-99) Macquarie Group.23 ...... Cardia, Lamberto.31 ...... Sunmonu, Mutiu.1 ...... 1 Judge in the UBS vs. U.S. case sets a status call for Friday In the study, Alan Dangour of the Eurex.2...... 5 Southwest Airlines.3 ...... Boulevard Brand Whitlock 87, 1200 Brussels, Belgium McCann, Kevin.23 ...... Trichet, Jean-Claude .31... school’s public health intervention European Aeronautic Majedie Asset Sprint Nextel.20 ...... Clyne, Cameron.24 ...... McCooey, Bob.23 ...... Telephone: 32 2 741 1211 Fax: 32 2 741 1600 Management.23 ...... Turner, Adair.19 ...... Continued from first page calls that the settlement talks have ney Stuart Gibson said he didn’t and questionable client recruit- research unit and one of the report’s Defence & Space.3 ...... State Bank & Trust.20 .... Dailey, Marlin.3 ...... McMahon, Jonathan .19... . SUBSCRIPTIONS, inquiries and address changes to: Microsoft ...... 5,20 Daley, Kirby .24...... Vanderlugt, Johan.24 ...... land’s Justice Ministry said the gov- hit a “stumbling block,” but they share Mr. Stearns’s optimism that a ment. UBS also paid a $780 million Telephone: +44 (0) 207 309 7799 Exxon Mobil ...... 11,20 STMicroelectronics.8 ...... Miller, Brad .2...... 2Varin, Philippe.7 ...... authors, said: “A small number of dif- Calling time from 8am to 5.30pm GMT Donnelly, Tom.29 ...... Fidelity Investments.22 .. Midwest Airlines.3 ...... SWX Swiss Exchange .25 Mittal, Lakshmi.5 ...... Viehbacher, Christopher 6 ernment had taken note of the Fri- said confidentiality rules prevent deal was near. “I don’t believe that’s fine. ferences in nutrient content were E-mail: [email protected] Website: www.services.wsje.com Fathrop, Andrew.1...... 1 Finmeccanica.22 ...... Nasdaq OMX Group.23 .... Tata Steel .8...... Vorhaus, David.29 ...... day meeting, and didn’t comment disclosure of its exact nature. the case,” he said. “We believe delay Hundreds of clients of UBS and found to exist between organically Advertising Sales worldwide through Dow Jones Gelder, Paul van.23 ...... Moore, Nicholas.23 ...... International. Frankfurt: 49 69 971428 0; London: 44 207 842 9600; First Data.2...... 2Natixis.3...... Walsh, Willie .3...... further. Still, UBS attorney Eugene does not serve any of the parties’ in- other offshore banks have voluntar- Toshiba.8...... Geours, Frédéric Saint.7 .. O’Donnell, William.21 ...... and conventionally produced food- Paris: 33 1 40 17 17 01 Ford Motor .7...... National Australia Bank Toyota Motor.31 ...... O’Kelly, Ciaran.16 ...... Wang Zhenning.24 ...... In an emailed statement, UBS Stearns said an agreement could be terest at this point.” Printed in Belgium by Concentra Media N.V. Printed in Germany by Gibson, Stuart.31 ...... ily come forward under an IRS am- stuffs, but these are unlikely to be of GlaxoSmithKline.6 ...... 2...... 4UAL .3...... Oppleman, Victor.29 ...... Ward, Mark .1...... 1 Dogan Media Group / Hürriyet A.S. Branch Germany. Printed in Gidari, Al .2...... 9 Wiedeking, Wendelin .7..... said it is supporting the Swiss gov- “minutes away,” insisting that the UBS in February reached a de- nesty program that requires pay- any public health relevance.” Switzerland by Zehnder Print AG Wil. Printed in the United Kingdom by Globe Specialty Metals NebuAd .2...... 9UBS .1...... Partridge, Chris.3 ...... Newsfax International Ltd., London. Printed in Italy by Telestampa Gold, Alan .1...... Wigand, James.20 ...... ernment in settlement efforts, and major sticking points didn’t seem in- ferred prosecution agreement with ment of back taxes and penalties but Some consumers are willing to pay Nestlé.8...... United States Steel.20.. . Centro Italia s.r.l. Printed in Spain by Bermont S.A. Printed in Ireland .2...... 3 Goncalves, George.21 ...... Peek, Jeffrey .25...... Wilcock, Alan.23 ...... continues to see the matter best re- surmountable. “The issues here, as the Justice Department over its prac- generally doesn’t mean prison time. more for organic foods based on their by Midland Web Printing Ltd. Printed in Israel by The Jerusalem Post Goldman Sachs Group Nikon.2...... 4Visa .2...... 2Gürer, Hüseyin.2 ...... Reithofer, Norbert.31 ...... Group. Printed in Turkey by GLOBUS Dünya BasInevi. Witty, Andrew.6 ...... solved between the respective gov- we see them, don’t appear to be the tices, agreeing to turn over about That program ends Sept. 23. perceived health and nutrition bene- ...... 22,24 Nippon Steel...... 8,24 Volkswagen.7 ...... Haerter, Holger.7...... Rosado, Tony.22 ...... Wu Dazhong.24 ...... Registered as a newspaper at the Post Office. ernments. kind that should bring a stalemate,” 300 names of U.S. account holders Three American clients of UBS fitsandtheglobalorganicfoodmarket Trademarks appearing herein are used under license from Dow Jones Goldman Sachs JBWere Nissan Motor ...... 7,20 White & Case.25 ...... Hammond, Philip.31 ...... Sants, Hector.19 ...... Yamaji, Hiromi.17 ...... & Co. © 2009 Dow Jones & Company All rights reserved. .2...... 4Nomura Holdings.16 ...... Wm. Wrigley Jr..8 ...... Hendler, David.25 ...... Sayeed, Sadeq.17 ...... Younus, Irfan.3 ...... 1 Lawyers for the U.S. and UBS told he said. and admitting it illegally used sham have pleaded guilty to U.S. tax-re- was estimated at Œ29 billion ($41.1 bil- Editeur responsable: Patience Wheatcroft M-17936-2003 Google.5...... NYSE Euronext ...... 23,25 Yahoo ...... 5,20 Hudson, Paul .3...... Scott, Ben .2...... 9Zetsche, Dieter ...... 7,31 the judge in telephone conference But Justice Department tax attor- offshore entities, false paperwork lated charges. lion) during 2007,the researchers say. 30 THURSDAY, JULY 30, 2009 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. THURSDAY, JULY 30, 2009 3 MARKETPLACE LEADING THE NEWS Yahoo’s home page: doing more with less Airlines struggle to meet plane payments site. This turns your Yahoo home Some apps didn’t work at all, like forthelatestmodelsisalsodifficultbe- Redesign is easier page into an aggregator of informa- the Facebook app, which couldn’t BA seeks to delay Installment plan cause their resale values haven’t yet tion, bringing glimpses of informa- connect to my Facebook account. Ya- Airlines are facing troubles been established. “Because the 787 is to absorb, bringing tion to you in one place so you don’t hoo said the problem should be its installments getting cash to finance jetliner so new and doesn’t have a market have to waste time navigating to fixed this week. production. These pre-delivery price, it will be hard to do,” said Chris- content in one place other sites. The home page seemed to have a on Boeing 787 orders payments can reach $50 million tian McCormick, chief executive of But if a greater number of these longer memory when it came to the for a big plane. An overview: transport financing at French bank By Katherine Boehret apps were more robust, you would list of My Favorites. I edited my list, By Daniel Michaels Natixis SA, a major aircraft financier. be able to do more right within the adding more pre-made apps and cre- n Airlines pays roughly 1% of plane’s Hesaidpredeliveryfinancinghasbeen Makeovers are always fun to hover pane, like watch videos or ating some of my own using a British Airways PLC is pressing catalog price at contract signing. difficult for the A380 superjumbo, 16 watch. Someone swoops in on an un- play a game. Currently, the hover built-in tool that lets you enter a Boeing Co. to renegotiate installment ofwhich arein service. suspecting fashion “don’t,” im- preview pane only lets you see con- Web site. Yahoo has preloaded icons paymentson787Dreamlinersthecar- n Over 18 – 24 months before plane is Lendersaremorewillingtofinance proves him or her with a new hair- tent, update social-network sta- for some popular Web sites such as rier has ordered—a money-saving ef- delivered, customer pays up to 30% on delivery because finished jetliners style, makeup and wardrobe, and tuses and enter search terms. cnn.com; otherwise, it will use a ge- fortthathighlightsanewheadachefor of price. Payments financed from can be repossessed in a bankruptcy presents the finished product to This makeover comes at an inter- neric star. airlines and plane makers amid the cash or short-term bank loans. and are mobile assets with resale val- overjoyed friends and family. esting time in the world of online Two apps are permanent fix- credit crunchand plunging air traffic. n Balance of plane price paid at ueswell established. Last week, Yahoo unveiled the re- news aggregation. Competitors like tures at the top of the My Favorites BA Chief Executive Willie Walsh delivery and loans are paid off. Banksthatoncespecializedinprede- sults of its latest makeover: the re- Google and Microsoft incorporate list: One shows a list of all Yahoo said in an interview in London he is Purchase financing kicks in. Reuters liverypaymentfinancinggarneredrela- vamped home data from all over the Web into iGoo- sites and the other shows Yahoo seekingtodelaycashpaymentsthatall Airlines start paying for planes as they get built. Here, Boeing 787 Dreamliners tivelyhighmarginsforthebusiness,in- THE MOSSBERG page. Carol Bartz, gle.com and MSN.com, respectively. Mail. Everything else can be de- airlines make to Boeing and its Euro- Note: figures are approximate undergo final assembly at the company's plant in Everett, Washington. dustry officials say. But many quit the the company’s rela- And the concept of the home page as leted, added and moved around in peanrivalAirbusasnewplanesarebe- Source: WSJ research market two years ago amid disputes SOLUTION tively new CEO, has a starting point isn’t as popular as it the list. One of my favorite apps was ingbuilt. with Airbus and Boeing over terms of said that Yahoo’s once was: Many people now start for Epicurious.com, the food and rec- These so-called predelivery pay- the financing, said Mr. McCormick at home page needed just such a make- browsingthe Web byfirst clickingon ipe site. When I hovered over the Epi- mentscan total tens of millions of dol- thantwo years behind schedule and is fered special loans to cover predeliv- talksnormally focuson reducingor de- Natixis. Most other funders stopped Yahoo over. After not changing signifi- alinkinanemailorinoneofmanyso- curious app, images of food with rec- larsper jetliner andhavebecome very billionsof dollarsoverbudget. ery payments recently stopped doing laying payments. Bankers say the BA- lastyearwhenthecreditcrisishit. cantly since 2006, the home page cial-networking sites, like Twitter. Yahoo’s cleaner, streamlined home page emphasizes its ability to view content ipe names appeared in the hover pre- difficultforairlinestobankrollinthefi- Foruptotwoyearsbeforeaplane’s so because the terms became unap- Airbus negotiations likely affect six of Predelivery loans have become fits the role of a fashion don’t. And Of course, Yahoo plans to use from other Web sites. view pane. One click on an image nancial crisis, industry officials say. delivery, airlines make installment pealing, which has forced airlines to the12planesonorder,theprepayments trickybecausetheyfundunfinishedas- consumers, like family and friend ob- this redesigned home page to drive sent me to the Web site for the full That, in turn, squeezes plane makers, payments that can cover more than shoulder the expense from cash flow. forwhichwouldbeabout$600million. sets.Bankersandplanemakershavear- serving the aftermath of a make- traffic to the company’s own sites version of the recipe. who rely on the payments to fund jet- 30%ofaplane’scatalogprice.Airbus,a The shift comes as airline revenue is “I’m pleased we reached agree- guedoverhowtotreattheloansifabor- over,will either be overjoyed or non- like Shine, Answers, Health and and Del Monte fruit snacks rather a variety of functions for the home After adding many of my own linerproduction. unitof European Aeronautic Defence nose-diving and carriers’ cash re- mentwithAirbusonPDPsandresched- rowing airlinedefaults. plussed by the finished product. OMG (a celebrity gossip site). These than technology products. page, not just apps that are tied to apps to My Favorites, I wished Ya- The move is the latest in a series of & Space Co., and Boeing use this servesareshrinking. uling,” Mr. Walsh said. “We continue “It’s funding for something that I’ve been using this new home Yahoo sites make up half of the 65 My Favorites is fixed on the far Web sites. hoo had a one-click tool for convert- setbacks for Boeing. Its 787 Dream- moneytobuycomponentsandpayfac- “Having to fund PDPs out of work- discussionswith Boeing.” hasn’t been built yet, so it’s tough in pageforoveraweeknowandIcanre- apps designed especially for My Fa- left of the Yahoo home page and a You can customize the home ing my browser bookmarks into liner was originally supposed to enter toryworkers. ing capital is putting pressure on air- Bankers say problems with financ- thisenvironment”ofextremeriskaver- port that Yahoo followed one of the vorites. Yahoo says that its apps for large search box sits prominently at page for style or content changes if apps. Yahoo says this is something it service in May 2008 but is now run- A Boeing spokesman declined to lines’ cash flow—it’s not easy,” Marlin ing pre-delivery payments most di- sion, said Chris Partridge, director of most important makeover rules by other sites, including WSJ.com, the top of the home screen. you sign on using a user ID and pass- hopes to introduce in the future. ningmorethantwoyearslateamidase- discussongoingnegotiationswithBA, Dailey, Boeing Vice President of sales, rectly hit small airlines and carriers asset financing at Deutsche Bank AG doing more with less. Gone is the were made by Yahoo and the outside The top middle section of the word. Changes should appear the The new Yahoo home page is a re- riesofsupplyandproductionglitches. whichordered24Dreamlinersin2007. saidin aninterview. that have ordered the Dreamliner and inLondon.Mr.Partridgesaidhisgroup busy screen saturated with adver- company running the Web site. An screen shows a carousel of images next time you log in. But this didn’t freshing way of bringing content to On Wednesday, contractor Crane Co. The Dreamliners have a catalog price Thenewfinancingpressurescome the Airbus superjumbo. Both are new inthepastfundedPDPs,“butwe’redo- tisementsandclutter.Thenewhome ad runs on the hover preview page andcurrentnewsthatYahoocallsthe work as well as it should. I set my you rather than you chasing around saidnewsoftwarefortheplane’sbrak- of about $150 million each, which asmanyairlinesarealsoaskingBoeing models that are behind schedule. Re- ingvirtuallynothing now.” page is clean and easier to absorb. of each app and the revenue for this TodayModule;belowthisistheNews page to display in a tangerine color, the Web looking for it.The My Favor- ing system has yet to be completed would imply prepayments of about and Airbus to delay airplane deliver- sulting uncertainty has made many “It had been easy for airlines to ar- Yahoo’s home-page makeover ad goes to Yahoo, not the content Module, which houses tabs labeled one of six colors offered for custom- ites apps need a little more power to amida disagreementover who should $50 million per airliner. However, the ies. BA earlier this month agreed with bankersbalkatfundingthepayments. rangefinancing,butbanksthatwerein goes beyond surface improvements. provider. News, World, Local, and Finance. izing the page, but the home page be truly useful and to encourage peo- pay for the work. Also Wednesday, jetsforBAareexpectedtobedelivered Airbus to reschedule delivery of 12 “You don’t finance PDPs when that market withdrew,” said John Its most useful feature is a list called Yahoo will use your list of My Fa- The revamped home page will wasn’t tangerine-colored the next pleto usetheYahoohomepageevery Standard&Poor’sRatingsServicescut overa numberof years, andonly some A380superjumbostheairlineordered you don’t know when the plane will Leahy, chief operating officer at Air- My Favorites, which contains a vari- vorites apps to learn about what serve as a starting point for the Ya- time I logged in. day,butYahoohopestosolvesomeof Boeing credit ratings a notch, noting of these might be affected by negotia- in 2007 and adjust predelivery pay- be delivered,” said Bertrand bus. Mr. Leahy, Airbus’s head of air- ety of Web sites from within and out- sites you use so as to target ads at us- hoo Application Platform, or YAP. I had trouble logging into my that problem in a couple of months itsconcernaboutthepossibilityoffur- tionsoverprepayments. ments. The A380 has a list price of Grabowski, a managing director at planesales,saidtheshortageofprede- side of Yahoo. When your cursor hov- ers. This proved true for most of the Sometime around late September, Gmail account using a special Gmail when it opens the site to developers. ther production cuts due to airline or- Traditionally, short-term bank about$300 million. German DVB Bank SE in London. Mr. livery financing options “is becoming ers over one of these entries, which ads I saw on my home page, but Yahoo will open its YAP (no pun in- app, but this and the color problem derdeferralsand cancellations. loans to airlines covering the amount Thecompaniesgavenofinancialde- Grabowskisaidthebankhascutback a bigissue.” Yahoo calls “apps,” a pane opens strangely, the AllThingsD.com app tended) to software developers so were fixed by the time this column Edited by Walter S. Mossberg. Email Airbus is also struggling to deliver wouldbepaidoffatanairplane’sdeliv- tails of the deal, but bankers familiar on its predelivery financing. —Ann Keeton contributed with a preview of content from that displayed ads for Mars chocolate they can make all kinds of apps with went to press. to [email protected] A380s. The program is running more ery. But many banks that had long of- with predelivery funding say those Arranging predelivery financing to this article. In a savings shocker, U.S. discovers paper has two sides Change can really add up when airlines impose big fees By Jonathan Weisman “I mean, emailing around the more cheaply. maintenance schedules to reflect White House budget office By Scott McCartney ticket change fees and penalties. teams sell nonrefundable tickets, organization of travelers who com- ger revenue. JetBlue was second at daily press clips instead of printing The Justice Department esti- what the Coast Guard actually does, spokesman Ken Baer said no one is Revenue from change fees is go- but buyers can give them to friends mute by air between home and busi- 4.6%. US Airways Group Inc. was WASHINGTON—With the budget them out and distributing them? mates it can save $573,000 through the agency discovered it can save $2 suggesting the $100-million exer- Illness, family emergencies, re- ing up—even though fewer people or sell them; airline tickets are non- ness, says change fees have risen so also above average at 4.3%. deficit soaring toward $2 trillion, the That should not have been necessi- fiscal 2010 by setting up its printers million a year. cise will close the budget gap. The scheduled meetings, postponed con- are traveling—because several air- transferable. Hotels, restaurants high that many frequent travelers American, UAL Corp.’s United U.S. Department of Justice has fig- tated by a presidential order.” and copiers to use both sides of the The Federal Emergency Manage- cost-cutting effort wasn’t a one-off ferences—they add up to a big busi- lines have hiked penalties. Amid and other service providers may are switching to Southwest Airlines Airlines, Alaska Airlines and Virgin ured out how to play its part: double- The Air Force has proposed re- paper. By emailing some documents ment Agency is going to save $3.8 program. This summer, the budget nessforairlines.Changefeesandcan- high fuel prices last year, several big charge fees for no-shows, but they Co., which allows ticket changes America Airlines all fell between 3% sided photocopying. placing its specially formulated jet insteadof printingthem out, theDe- million by refurbishing and reusing office told each cabinet department cellation penalties add up to $2 bil- airlines pushed up the change fee on typically give customers ample time without charging a penalty. “That and 3.3%—about the industry aver- There are other acts of national fuel with commercial aviation fuel, partment of Homeland Security will or selling its emergency trailers— to devise a 2011 budget with zero lion a year, according to new U.S. De- domestic tickets to $150 from $100. to cancel, imposing penalties only $150 charge is a killer, and people age. At AirTran Airways, fees sacrifice. The Forest Service will no which it will top up with some mili- save $318,000. like the ones provided to people dis- growth, and another with a 5% cut. partment of Transportation filings. Even JetBlue Airways Corp. im- within 24 hours, or perhaps after 4 avoid it. Airlines may think they are dropped 18% for the first quarter longer repaint its new, white vehi- tary additives. That will save nearly Both Homeland Security and the placed by hurricanes—instead of Before the 2011 budget proposal At some airlines, the fees are posed a $100 change fee, up from p.m. on the day of arrival. making money on it, but they must compared with a year earlier, a re- cles green immediately upon pur- $52 million next year, when the pro- NationalHighwayTraffic SafetyAd- ditching them. comes out early next year, the bud- heavier than baggage fees even $40, for reservations made online. At airlines, fares with any kind of be losing money. They are sending sult of the decline in business travel chase. The Army will start packing gram begins. ministration have pledged to take Only one cabinet office proposed get office will again go scouting for though they get far Fees collected in the first quarter discount are classified as nonrefund- their customers away,” Mr. Landes this year, the airline said. “Business more soldiers onto R&R flights. The The Office of Thrift Supervision, thesamestepthathassentthenews- actually eliminating a program. The cost cuts and inefficiencies. THE less attention. At this year jumped 29% at JetBlue to able. Customers can change and use says. “You buy tickets six months in travelers are the most likely to can- Navy will delete unused email ac- adivision of the Treasury,identified paper industry into a tailspin: They Department of Labor says it will dis- On Wednesday, the White House AMRCorp.’sAmeri- $32.2 million from $25 million a tickets within a year of purchase, advance and how do you know cel reservations and incur the fee,” a counts. unused phone lines costing will start getting their news online bandthenearly40-year-oldEmploy- budget office will release three sets MIDDLE SEAT can Airlines,travel- year earlier. but doing so usually results in a pen- you’re not going to get sick, and spokesman said. Three months ago, President $320,000. free, rather than renew their sub- ment Standards Administration. of guides to press federal agencies ers paid $116 mil- That stealthy shot of revenue is alty of as much as $250 on interna- your job isn’t going to be trans- Delta Air Lines Inc. took the DOT Barack Obama ordered his cabinet By increasing the number of sol- scriptions. Homeland Security will With it goes an assistant secretary to realize $40 billion in savings lion in change and cancellation pen- huge for airlines, helping them tional itineraries, plus the differ- ferred?” category of “cancellation fees” quite secretaries to find $100 million in diers traveling on each airplane save $47,160, or 0.0000026% of the of labor, two deputy assistants and through procurement and contract- alties in the first quarter this year, match discount airline prices, for ex- ence in fares if the new one is higher. Mr. Hudson, the consumer advo- literally and reported only cancella- budget cuts for the current fiscal chartered for rest-and-relaxation deficit. an administrative office. policy changes. compared with only $108 million in ample, while ending up with more With some low-cost fares, the pen- cate, says airline penalties are most tion fees, not change fees. (DOT year to emphasize the point that he, leave, the Army will save $18 million The Coast Guard realized that A Labor Department official “The fact that it may seem that baggage fees. revenue from customers to help alty can approach if not equal the analogous to hotels’ late-cancella- guidelines lump the two together.) too, was serious about belt-tighten- in the next few months. The Navy maintenance schedules for its 1,800 downplayed the move. The ESA’s there’s a lot of savings that is easily “It’s a backdoor way of charging cover higher costs. value of the original ticket, leaving tion rules, which often require one- Penalties imposed on tickets that ing. They responded with $102 mil- will save $5 million a year by delet- small boats assumed they were for main activities (enforcing work- attainable proves a point,” he said. higher airfares to frequent fliers, par- Airlines say they charge change it worthless if a change were to be night’s payment. Like an airline seat get changed add up to a lot more lion. That is 0.006% of the esti- ing inactive Internet accounts to recreational use such as water-ski- placeregulationandworkers’rights “There’s a lot of change in Washing- ticularly business travelers, who have fees and cancellation penalties to made. that flies empty, a hotel room that than tickets that are simply can- mated federal deficit. configure their computer networks ing or bass-fishing. By adjusting rules) are alive and well, the official ton that has to happen to make sure to change plans,” said Paul Hudson, ex- limit no-shows for flights and re- Airlines say they don’t make sits vacant for a night is lost revenue celed and never reused, because air- The list of 77 spending cuts, said. They will just have a few less taxpayer dollars are used effec- ecutive director of the Aviation Con- duce the need to overbook, and to their tickets transferable because that can’t be recovered, so last- lines typically give customers one which the White House is calling bosses to report to. tively and efficiently.” sumer Action Project, a consumer ad- give travelers incentives to pur- they don’t want companies buying minute changes can be costly. “But year from date of purchase to reuse “the $100 million savings chal- The Bureau of Reclamation’s of- Republicans weren’t impressed. vocacy group in Washington. chase full-fare, unrestricted tickets. up inventories of cheap tickets and most hotels give you the opportunity the value of a canceled ticket. When lenge,” reflects the vastness of gov- fice in Boise, Idaho, is getting rid of If the administration produces $100 In February, the Transportation By paying higher prices, travelers either doling them out for employee to cancel within a certain amount of Delta bought Northwest, it changed ernment—and its vast inefficiency. itsBeechcraft KingAir200airplane. million in savings every 98 days for Department clarified rules on how can buy flexibility and avoid change business trips or creating a second- time without penalty,” he said. how Northwest reports cancella- Hundreds of millions of dollars in It wasn’t a tough call, says Bruce therestofMr.Obama’sterm,thesav- airlines report ticket-change penal- fees; lower prices come as a trade- ary ticket market. Airline rules are tougher on con- tion/change fees as well. savings were found simply by cast- Cassidy,programmanager forprop- ings will total $1.5 billion, or three ties to the government. The first- off for more restrictions. But the penalties are also a huge sumers “partly because of a lack of A Delta spokeswoman said the ing around for areas to trim. ertyandofficeservices.Theglamor- days of interest on the federal debt, quarter numbers for 2009 offer the “Every traveler should weigh the irritant for travelers who get frus- competition and partly a lack of reg- airline couldn’t change its reporting Still, the reductions barely ous, airborne inspections of the said Don Stewart, spokesman for first accurate snapshot of how much likelihood they will have to change trated trying to make schedule ulation,” Mr. Hudson says. “Some of in time to report the first quarter scratch the surface. “Some of these west's vast water projects—a staple SenateMinorityLeaderMitchMcCo- consumers pay to make changes to their itinerary prior to travel when changes. these things I think should be regu- with change fees, so it reported can- cuts are so small they would be a of Bureau of Reclamation life since nnell. non-refundable tickets. It turns out assessing each fare type and price,” “I think it’s scandalous how the lated.” cellation fees of $3.6 million. But rounding error of a rounding error 1956—isgivingwaytomorethemun- “These savings tends to be in to be more than many realized. a spokesman for American said. airlines are allowed to dictate the Midwest Airlines, a Milwaukee- when asked, the airline estimated to- in the federal budget,” said Brian dane life of the office jockey. Instead thousands, tens of thousands and Change and cancellation fees Unforgiving ticket penalties are terms that they do,” says Richard based carrier catering to business tal change and cancellation fees for Riedl, a federal budget expert at the of flying engineers out to the Grand millions,”saidRep.PaulRyanofWis- amount to an added 3.2% of U.S. air- unique to the airline industry; other Factor, a business traveler who be- travelers with low fares, records the the first quarter of $100 million for conservative Heritage Foundation. Coulee Dam in Washington State, consin, the ranking Republican on line passenger revenue, totaling industries typically either allow lieves airlines shouldn’t be allowed heftiest passenger change fees as a Delta and $58 million for Northwest— They also show how “unbelievably staffers use videoconferencing gear the House Budget Committee. “Our $527.6 million for the first quarter. changes or cancellations, or else al- to make tickets both nonrefundable percentage of passenger revenue. putting both slightly above average, outdated” the government is, he Getty Images and computer monitoring to keep fiscal challenges are in the thou- Much of it comes from business trav- low buyers to swap or resell tickets and nontransferable. Midwest’s reported change and can- when fees are compared with pas- said. To cut costs, the U.S. Forest Service will stop painting vehicles green. tabs on the facility. sands of billions.” elers who pay the lion’s share of they can’t use. Theaters and sports Steve Landes, who runs a Florida cellation fees equaled 7% of passen- senger revenue. 4 THURSDAY, JULY 30, 2009 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. THURSDAY, JULY 30, 2009 29 LEADING THE NEWS MARKETPLACE Leveling off U.S. durable-goods orders excluding transportation, change from a year earlier Obama slipping in poll 20% Hasta la Vista: Windows 7’s many versions 10 Approval rating hits mainstream, non-techie users, so I has all the key Windows 7 features. money. And Vista Home Basic can be average users, 3 gigabytes is plenty, 0 53% as health plan Ways to help users will try to sort them out here. The next step up, called Profes- upgraded to Windows 7 Home Pre- but some consumers have 64-bit Throughout this column, I will be re- sional, adds a few extras that may be mium. Vista machines, which can move –10 loses public support make the transition ferring to simple, direct, upgrades especially useful for consumers who All of the three common con- faster when lots of programs are be- meant for average users. I won’t be work at large companies or use sumer versions of Windows 7 can ing used at once, or when doing By Laura Meckler simple and direct discussing more complex methods older, specialized programs. Most run inside virtual machines, such as tasks like playing back high defini- –20 that require things like wiping out, notably, the Professional edition, un- the faux Windows computers cre- tion video. WASHINGTON—Support for By Walter S. Mossberg or dividing, hard disks. like the Home Premium version, can ated on Apple Macintosh hardware The problem is that you cannot –30 U.S. President Barack Obama’s Unlike Vista, Windows 7 doesn’t remotely tap into certain corporate using the Fusion and Parallels soft- directly upgrade 32-bit Vista to 2003 ’04 ’05 ’06 ’07 ’08 ’09 health-care effort slipped substan- Last week, this column laid out require beefier hardware than its im- networks that use a system called ware. However, the upgrade rules 64-bit Windows 7, or vice versa. So tially over the past five weeks—par- the painful, tedious process that mediate predecessor. It should work “Domain Joining.” And the Profes- still apply. that adds another layer of complex- Note: figures are seasonally adjusted Source: U.S. Commerce Department via Thomson Reuters ticularly among those who already awaits Windows XP users in Octo- fine on nearly every Vista PC, and sional version has the ability to run After you’ve installed Windows ity to the upgrade process. have insurance—as Congress has ber if they choose to migrate their even on many late-model comput- older Windows XP programs that 7, you can move up from Home Pre- Finally, a note about prices. Most struggled to finalize legislation and existing PCs to Microsoft’s forth- ers running XP.In fact, it is a bit less wouldn’t otherwise work in Win- mium to Professional with minimal major Windows PC makers are offer- attention has focused on its high coming new edi- demanding than Vista. For instance, dows 7. It costs $200 for upgraders. extra effort, for an added sum, by us- ing free, or very low cost, upgrades price, a new Wall Street Jour- PERSONAL tion of Windows, Microsoft has repeatedly demon- The other likely choice is called Ulti- ing a program from Microsoft called to Windows 7 later, if you buy a Vista More signs add to hopes nal/NBC News poll finds. called Windows 7. strated Windows 7 working on low- mate. It combines every feature of Windows Anytime Upgrade. This un- PC now. They are doing this, in coop- In a bid to regain momentum, TECHNOLOGY This week, I aim to powered netbooks that choked on the other editions but costs upgrad- locks the added features of Profes- eration with Microsoft, to discour- Mr. Obama is shifting the way he is explain some of the Vista. ers $100 more than Home Premium. sional, which were actually already age people from waiting until Octo- selling his top domestic priority, fo- other details and issues involved in However,justlikeVista,Windows There are limitations on which on your machine, but were hidden. ber to buy a new PC. Each hardware U.S. recession is easing cusing less on how the revamp upgrading a PC to Windows 7,even if 7 will be sold in a multitude of differ- current Vista machines can be di- You can do the same thing to move company has slightly different poli- would reduce costs and more on you are currently running Windows ent editions, and deciding which one rectly upgraded to the various ver- up to Ultimate. cies on this. However, this free up- By Kelly Evans and manufacturing. how it would protect those who al- U.S. President Barack Obama holds a town-hall meeting about health care at the Vista, from which an upgrade is far to buy can be confusing. There are six sions of Windows 7. In general, you However,there’s another compli- grade program isn’t of any help if Most districts described manu- ready have insurance—the people Broughton High School in Raleigh, North Carolina on Wednesday simpler. different flavors, though one is re- can only upgrade your current ver- cation. For each of the three main you simply want to keep your exist- Thepaceofdeclineineconomicac- facturing as “depressed but with se- who need to be won over. One of the Press Associated Unlike migrating from XP—still served for countries Microsoft calls sion of Vista to the comparable ver- consumer versions of Windows 7, ing PC and upgrade it to Windows 7. tivity has “moderated” or “begun to lected signs of modest improve- president’s top advisers acknowl- Communication problem the most common version of Win- “emerging markets.” Of the remain- sion of Windows 7. For instance, there are actually two editions. One You can learn more about the var- stabilize,” the FederalReserve’s latest ment.” An uptick in production in edged Wednesday that the White dows, despite its age—moving up ing five, one is for big businesses. An- Vista Home Premium can only be up- is meant for PCs with standard pro- ious editions of Windows 7 at: win- Support for President Obama’s health-care plan is low, but support rises survey of regional economic condi- some regions was attributed to the House’s prior focus had been unsuc- fromVistaisdesignedtoberelatively other,a stripped-down edition called graded to Windows 7 Home Pre- cessors, called 32-bit processors, dows.microsoft.com/en-us/win- when the plan is explained to poll respondents. tions found, and a Commerce Depart- need to replenish customer invento- cessful. straightforward.It’sadirectupgrade Starter, can’t be installed as a direct mium and Vista Business can only and the other for PCs that sport dows7/products/compare-edi- ment report showed the steep drop in ries. Military products and pharma- In mid-June, the public was From what When the process that preserves all your per- upgrade for existing computers, ac- be upgraded to Windows 7 Profes- newer processors called 64-bit pro- tions?T1=tab01. And I’ll have a full U.S.business-investmentspendingap- ceuticals saw strong demand or ris- evenly divided when asked whether you have heard plan is sonal files, settings and programs. cording to Microsoft. sional. This rule has two exceptions. cessors. The 32-bit version of Win- review closer to its Oct. 22 release pears to be bottoming out. ing sales in some areas. it thought Mr. Obama’s health plan about Barack 32% Bad idea 42% explained: 38% Oppose However, even this easier transi- Most consumers will likely Any flavor of Vista except Starter dows can only recognize 3 gigabytes date. Both reports reinforced expecta- But improvement wasn’t seen was a good idea or bad idea. The Obama’s health tion involves some choices and limi- choose Windows 7 Home Premium, can be upgraded to Windows 7 Ulti- of memory, but the 64-bit version tions that the recession, which be- across the board. Travel and tour- new poll, conducted July 24-27, care plan, do you 6 Depends/ tations that can be confusing for which costs $120 for upgraders and mate, if you care to spend the extra can use much, much more. For most Email to [email protected]. gan in December 2007,may be near- ism declined in most districts. found 42% calling it a bad idea ver- think it’s 35 Not sure/ 22 not sure ing an end. Freight and shipping volumes were sus 36% who said it was a good idea. a good idea or no opinion The Fed’s “Beige Book,” a reported well below year-ago levels Among those with insurance, the a bad idea? roundup of conditions across its 12 in many areas. Commercial real es- portion calling the plan a bad idea 36 56 Favor districts, suggested that economic tate was described as “weak” or rose to 47% from 37%. 33 Good idea Snooping on Web traffic gains popularity amid fears activity remains weak in many re- “slow” in all 12 districts. The concern is fueled by rising By Christopher Rhoads gions, but the slowing pace of de- Meanwhile,theCommerceDepart- anxiety over the federal budget defi- June July July proper regulation, the technology cline is a marked improvement from ment said new orders for durable cit, which is reflected in the new poses a threat to privacy and free- goods—big-ticket items such as com- Source: WSJ/NBC News telephone poll of 1,011 adults conducted July 24–27; dom of speech, particularly if DPI previous reports. poll as well. Meanwhile, worries margin of error: +/–3.1 percentage points An Internet-monitoring technol- ChicagoandSt.Louis,forexample, puters and machinery—declined in over the economy and a drop in sup- ogy known as deep packet inspec- gets into the wrong hands. “Even in reportedthepaceofdeclineintheirre- June by a seasonally adjusted 2.5% port from Republicans appear to be tion is gaining favor as a tool to com- its most innocuous form, this tech- gions “appeared to be moderating” fromMay’s level,to$158.6 billion. The bringing Mr. Obama’s overall rat- crats to move their bill through the they’ve been singed by past experi- bat viruses and make networks run nology is extraordinarily powerful,” from the last report, while New York, drop was largely because of a decline ings down. They are now in line last of three committees. ence,” he said. “You’re talking about more efficiently, despite concerns says Ben Scott, policy director at Cleveland, Kansas City and San Fran- in aircraft orders, which had surged with historical standards, but no The poll also had some encourag- reducing costs over time, and that’s that the technology allows im- Free Press, an independent public-in- cisco reported “signs of stabiliza- the prior month. Excluding aircraft longer at the highflying levels of his ing news for Mr. Obama and his a hard thing for people to envision.” proper snooping on private Web terest organization in Washington. tion.” Minneapolis, however, said its and other transportation, orders rose early weeks. health-care allies. When given a Mr. Axelrod added that “con- traffic by governments and other As Congress wrestles with the do- regional economy contracted since 1.1%, the second straight gain and a His job approval now stands at fairly detailed description of the sumer protections are a lot more prying eyes. mestic questions, vendors are in- the last report, released June 10. The sign business demand is firming. 53%, down from a high of 61% in plan they are pushing, Americans tangible,” and that’s what Mr. The technology created a politi- creasingly making DPI a common in- report is done through interviews and A key gauge of business invest- April. The latest reading is only registered strong approval, with Obama focused on Wednesday at a cal firestorm when the administra- gredient in the next generation of surveys with local businesses. ment spending, orders for capital three points higher than President 56% saying they favor the plan ver- town-hall meeting in Raleigh, N.C. tion of former President George W. networking gear. While the report noted that goodsexcludingaircraftanddefense, George W. Bush’s rating in June sus 38% who oppose it. He outlined a series of policies, Bush used it to monitor interna- Sandvine Inc., of Waterloo, On- households “continued to be price- rose 1.4%, the second monthly gain. 2001, after his narrow and conten- Many of these details, such as re- many of which the insurance indus- tional communications as part of tario, combines its DPI technology conscious,” signs of scattered im- “The implication is that equip- tious election victory in late 2000. quiring insurance companies to try has agreed to accept. The presi- counterterrorism efforts. Iran’s ap- with equipment that lets Internet- provement were seen in manufactur- mentinvestmentshouldbegintolevel The poll had a margin of error of cover people with pre-existing con- dent said he wants rules that will re- parent use of deep packet inspec- service providers offer individual us- ing, housing and even the labor mar- off in the third quarter after plunging 3.1 percentage points for the overall ditions, haven’t been the focus of quire insurers to cover people with tion, or DPI, during a crackdown on ers more finely tuned subscription ket. Several regions reported hiring over the previous year,” said J.P.Mor- sample, higher for subgroups. the congressional debate, which pre-existing conditions, cap out-of- protesters last month gave the tech- packages. The company made head- activity in health care, technology gan economist Abiel Reinhart. On health care, there was an- has centered on more controversial pocket expenses, ban cost-sharing nology another black eye. lines last year when it supplied Com- other worrisome sign for the presi- issues. for preventive care, bar insurers But use of DPI, which examines cast Corp. with the ability to iden- dent: Only two in 10 people pre- Mr. Obama himself has focused from dropping people who become Web traffic at a much more detailed tify and block certain types of traffic dicted the quality of their own care sharply on cost control for busi- seriously ill, ban higher charges level than previous technologies shared between users—a high-pro- would improve under the Obama nesses and regular Americans who based on gender, ban annual or life- could, is still growing globally. “I file case that led to sanctions on French cabinet moves closer plan, and just 15% of those with pri- have seen premiums rise much time coverage caps, require insur- don’t see it shrinking at all,” says Al Comcast by the Federal Communica- vate insurance thought it would. faster than wages. White House offi- ers to renew policies as long as pre- Gidari, a Seattle lawyer who focuses tions Commission. Sandvine’s earn- Twice as many overall, and three cials believed this would give those miums are paid, and allow young on the communications industry. ings and stock price plunged after to privatization of La Poste times as many with private cover- with insurance a stake in the de- adults to stay on their parents’ “Its complexity is increasing, and I the incident. age, predicted their own care would bate. plans through age 26. don’t doubt this field will become A Comcast spokeswoman says By Gabriele Parussini inject Œ2.7 billion ($3.83 billion) get worse. “If you’ve got health insurance, even more lucrative.” thecompanyhassinceadoptedapro- into La Poste in partnership with “You can’t pass a substantial then the reform we’re proposing OntheInternet,informationisdi- gram that manages network traffic PARIS—The French cabinet took state investment bank Caisse des De- health reform unless privately in- Concern over the will also help you, because it will vided into small packets that are by the capacity used by subscribers, the first step toward a possible pots and Consignations, which also sured people see there’s a benefit provide you more stability and transmitted and then reassembled rather than by the type of traffic. privatization of the country’s postal would be a shareholder. for them,” said Bill McInturff, a Re- health plan is fueled more security,” Mr. Obama said. at the destination. DPI generally lets Sandvine,whichprovidedComcast’s service as it approved a bill that will The government hasn’t an- publican pollster who conducts the On the question of how to pay for operators monitor each packet mov- redesigned network-management turn La Poste into a joint-stock com- nounced plans to privatize La Poste, poll with Democrat Peter D. Hart. by rising anxiety over the measure, the poll finds only one ing over their networks. Based on system, has begun diversifying be- pany on Jan. 1. but it turned national phone opera- Support for former President idea with majority support: a surtax what they learn—primarily details yond the U.S. cable market, accord- Richard Borge The bill now goes to Parliament tor France Télécom as well as en- Bill Clinton’s health plan hovered in the budget deficit. on the rich, the approach taken in about addressing, the size of the ing to Tom Donnelly, a co-founder for approval. The UMP conservative ergy companies Gaz de France and similar territory in 1994, as it was the bill moving through the House, transmission and whether the data and executive vice president. Victor Oppleman, president of DPI, according to results of a survey tion to Comcast’s, have raised con- party of President Nicolas Sarkozy Électricité de France SA into joint- on its way to defeat. but not in the Senate version. is a video, say, or an email—they can More-powerful routers from Packet Forensics LLC, a Tempe, last year by Yankee Group and RCR cerns. NebuAd Inc., a Redwood City, and its allies have a firm majority stock companies before they were Once Congress leaves town for But it hasn’t worked, partly be- Public support for requiring prioritizetraffic,blockitandevenal- companies like Cisco Systems Inc. Ariz., company that specializes in Wireless News. Most said they Calif., online-ad company targeted there, so the bill’s passage is as- privatized via the stock market. its August break, especially if it de- cause the debate in Washington has businesses that don’t offer insur- ter it. often have DPI baked in. A Cisco law-enforcement applications for wanted it to improve network secu- ads at people based on their Inter- sured. Postal companies in the Nether- parts on a negative note, it will be been dominated by the $1 trillion, ance to pay a fine dropped moder- Advocates believe such technol- spokesman says that in most cases the technology, says he continues to rity, according to the survey. net use, recorded in part by DPI. It “We need to give La Poste the lands and Germany have been priva- hard for the White House to demon- 10-year price tag for covering the ately from last month, with about ogy is vital for managing the explo- the equipment is for enhanced Inter- get unlikely requests concerning Though it has existed for some was grilled in a congressional hear- means of pursuing its moderniza- tized, and their shares are traded on strate progress toward a successful uninsured, making it hard to simul- half of those polled now in favor. sion of Web traffic in recent years net-security. DPI. In recent months, he says, a few time, DPI received more attention ing last summer for this work, done tion and its development,” Finance local stock markets. The U.K. has put conclusion. For Mr.Obama, it is crit- taneously convince people that the Only about four in 10 liked the idea that’s driven by social-networking “DPI is going to disappear as a municipalities have asked him about from investors and start-ups after without users’ knowledge. The com- Minister Christine Lagarde said. off the partial privatization of Royal ical to change the story line that has bill will lead to reduced costs. of taxing insurance companies that sites and the popularity of online stand-alone thing and get folded using it to shield their communities the September 2001 terror attacks pany has since closed. Mail services will be opened to Mail, citing the state of the econ- dominated the past several weeks, “There’s dissonance, and I under- offer particularly generous health video.Anonlinephonecall,forexam- into other types of technology,” says from undesirable Web sites, such as as interest in monitoring Web traffic The term “deep packet inspec- competition in the European Union omy. The partial selloff, opposed by which has focused on the hurdles to stand the confusion,” said David Ax- plans, an idea that has gained cur- ple, might get priority over an email, David Vorhaus, an analyst with the those carrying pornography. grew. Advances in processing power tion” hasn’t helped. At an April con- in 2011. many lawmakers from the ruling La- passing legislation. He got some elrod, senior adviser to Mr. Obama. rency in the Senate Finance Commit- because a successful phone call de- Yankee Group research firm. “Be- Out of 145 top-tier communica- enabled DPI to monitor heavier vol- gressional hearing, a cable-industry The government would own al- bour party, had been due to go be- good news from the House on Tues- “People are properly skeptical tee. pends more on having few or no de- cause of the public image, it’s be- tion-services providers, 77% of re- umes of traffic without crimping official joked that he would like to most all the shares in the group, ei- fore Parliament before the summer day, as Democratic leaders worked about any proposals out of Washing- —Jonathan Weisman in Raleigh, lays. come increasingly difficult to mar- spondents said they were either speeds. find the engineer who coined the ther directly and indirectly. It would break. out a deal with conservative Demo- ton that speak to cost, because N.C., contributed to this article. Opponents worry that without ket—but not to sell.” strongly or somewhat interested in But a number of cases, in addi- name and “shoot him.” 28 THURSDAY, JULY 30, 2009 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. THURSDAY, JULY 30, 2009 5 BLUE CHIPS & BONDS CORPORATE NEWS Below, a look at the Dow Jones Stoxx 50, the Dow Jones Industrial Average biggest and best known companies in Europe, P/E: 14 Major players & benchmarks including the U.K. LAST: 9070.72 t 26.00, or 0.29% Dow Jones Stoxx 50: Wednesday’s best and worst… YEAR TO DATE: s 294.33, or 3.4% OVER 52 WEEKS t 2,512.97, or 21.7% Microsoft, Yahoo unite against Google Market value, Previous in billions close, in STOCK PERFORMANCE High Company Country Industry of US$ local currency Previous session 52-week Three-year 9500 Bayer Germany Specialty Chemicals $49.1 42.23 5.44% –22.7% 10.8% Close Microsoft’s Bing will become Yahoo’s search engine and Yahoo will handle sales of search ads for both companies Daimler Germany Automobiles 46.9 31.46 4.55 –17.4 –20.8 Low By Jessica E. Vascellaro come annually. ING Groep Netherlands Life Insurance 25.1 8.60 3.52 –58.9 –73.1 9000 And Nick Wingfield Carol Bartz, CEO of Yahoo Ganging up Mr. Ballmer said, under the deal, UniCredit Italy Banks 47.2 2.01 3.08 –37.9 –60.6 Microsoft will be investing “several Microsoft's Bing combined with Yahoo's Siemens Germany Diversified Industrials 73.3 57.05 3.03 –26.3 –10.1 8500 Yahoo Inc. and Microsoft Corp. hundred million” dollars in the short struck a deal for a 10-year Internet- search engine would still be a distant term, including some additional capi-

second to Google in number of searches ArcelorMittal Luxembourg Iron & Steel $53.1 24.20 –4.44% –58.1 –8.7 t search partnership, ending a pro- tal expenditures. 8000 tracted dance and uniting the rivals by U.S. Web users. The companies argued the deal BG Grp U.K. Integrated Oil & Gas 61.8 10.53 –2.68 –6.0 44.3 50–day Google moving average against Inc. will lead to better search results, in BHP Billiton U.K. General Mining 55.0 15.02 –2.44 –10.5 46.5 Under the deal, Yahoo will make Market share, Change from part by giving Microsoft more data May in pct. points Rio Tinto U.K. General Mining 57.7 22.96 –1.80 –48.1 –1.0 7500 Microsoft’s Bing search engine the June 2009 to refine its search technology. UBS Switzerland Banks 42.5 14.28 –1.31 –28.7 –75.9 search provider on its Web sites. Ya- The deal could make it simpler hoo will handle sales of search ads for 65% 0.0 for advertisers to choose an alterna- 7000 both companies, using Microsoft’s tive to Google as a vehicle for search ...And the rest of Europe’s blue chips 1 8 15 22 29 5 12 19 26 2 10 17 24 search-advertising technology. ads, said industry observers. May June July Latest, Latest, There is no large upfront pay- “They should be worried,” Market value, in local STOCK PERFORMANCE Market value, in local STOCK PERFORMANCE ment, as the two companies had ear- Danny Sullivan, editor of Search- Company/Country (Industry) in billions (U.S) currency Latest 52-week Three-year Company/Country (Industry) in billions (U.S) currency Latest 52-week Three-year Note: Price-to-earnings ratios are for trailing 12 months lier discussed. The agreement is a EngineLand.com, said of Google. BASF 45.0 34.81 2.90% –15.4% 11.6% L.M. Ericsson Tel B 27.7 69.40 0.58% 8.4% –38.9% 19.6% 0.5 Germany (Commodity Chemicals) Sweden (Telecommunications Equipment) DJIA component stocks revenue-sharing pact with Mi- “It’s going to give Microsoft in one Deutsche Telekom 53.9 8.80 2.45 –19.2 –27.9 GDF Suez 85.4 26.88 0.52 –32.3 0.3 crosoft paying Yahoo 88% of the fell swoop a much bigger share of Germany (Mobile Telecommunications) France (Multiutilities) Volume, CHANGE Stock Symbol in millions Latest Points Percentage search revenue generated from its the search market.” Deutsche Bk 41.2 47.15 2.30 –19.9 –46.5 Nokia 48.7 9.24 0.43 –48.0 –39.5 sites during the first five years of A Google spokesman declined to Germany (Banks) Finland (Telecommunications Equipment) AT&T T 25.10 $25.95 0.43 1.68% the agreement, the companies said. comment. AXA S.A. 43.0 14.63 2.16 –22.4 –46.6 Total S.A. 131.8 39.52 0.43 –19.7 –24.6 Alcoa AA 27.60 11.01 –0.25 –2.22% 8.4% 0.4 France (Full Line Insurance) France (Integrated Oil & Gas) AmExpress AXP 13.00 27.75 0.07 0.25% Microsoft, which last year made Bryan Wiener, CEO of digital ad- Banco Bilbao Viz 57.6 10.93 2.10 –6.7 –33.6 Vodafone Grp 113.7 1.19 0.42 –11.8 2.6 BankAm BAC 246.40 13.52 0.18 1.35% a failed $47.5 billion takeover bid for vertising agency 360i, said the deal Spain (Banks) U.K. (Mobile Telecommunications) Boeing BA 4.70 43.37 0.12 0.28% Yahoo, finally wins what it wanted would make Bing more attractive to ABB 40.5 18.92 1.99 –30.0 24.2 Sanofi-Aventis S.A. 87.1 47.12 0.30 –0.4 –35.8 Caterpillar CAT 11.80 41.83 –1.07 –2.49% most from the Internet pioneer— advertisers who have been exclud- Switzerland (Industrial Machinery) France (Pharmaceuticals) Source: Comscore SAP 54.8 31.80 1.92 –14.7 –10.7 BP 170.9 5.04 0.20 –1.4 –22.6 Chevron CVX 9.70 67.12 –1.22 –1.79% huge volumes of queries that run ing it from their campaigns because Asa Mathat /All Things Digital Asa Mathat /All Germany (Software) U.K. (Integrated Oil & Gas) CiscoSys CSCO 31.50 21.72 –0.21 –0.96% through Yahoo’s search engine. At its search traffic is relatively low. He France Telecom 62.5 17.00 1.77 –14.1 2.1 Iberdrola S.A. 41.4 5.89 0.17 –30.8 –15.4 CocaCola KO 8.50 49.28 –0.11 –0.22% the same time, Yahoo will reap addi- early 2010. tiny.” Sen. Herb Kohl (D-Wis.) said Bing” at the bottom. added it would free up Yahoo to in- France (Fixed Line Telecommunications) Spain (Conventional Electricity) Disney DIS 10.90 25.89 –0.48 –1.82% tional search-advertising business Microsoft Chief Executive Steve the search pact combines “industry In afternoon trading Wednesday, vest in new search ad-sales staff and Koninklijke Phlps 20.8 15.18 1.74 –28.6 –42.1 Telefonica S.A. 115.6 17.48 0.09 4.9 31.4 Netherlands (Consumer Electronics) Spain (Fixed Line Telecommunications) DuPont DD 6.30 29.54 –0.56 –1.86% to expand its share of the market. Ballmer said on the conference call giants and direct competitors in In- shares of Yahoo slid $2.05, or 12%, to technology, areas where, he said, it Unilever 45.7 18.94 1.64 –2.3 –0.7 ENI 97.2 17.25 0.06 –21.7 –28.3 ExxonMobil XOM 21.90 71.43 –0.46 –0.64% “We face a formidable competi- that he expects “opposition” to the ternet advertising and search mar- $15.17 on the Nasdaq Stock Market, has trailed Google. Netherlands (Food Products) Italy (Integrated Oil & Gas) GenElec GE 76.10 12.26 –0.26 –2.08% tor in search,” Yahoo Chief Execu- deal from an antitrust perspective kets.” as investors expressed disappoint- Still, Mr. Wiener said it remains Soc. Generale 36.2 44.32 1.53 –24.9 –60.0 Roche Hldg Part. Cert. 108.4 167.30 0.06 –11.6 –23.7 HewlettPk HPQ 12.70 42.19 0.21 0.50% tive Carol Bartz said on a conference from what he dubbed “the competi- A spokeswoman for the Euro- ment over the fact that the company unclear whether Yahoo and Mi- France (Banks) Switzerland (Pharmaceuticals) HomeDpt HD 11.10 25.39 0.00 0.00% call Wednesday. “What this deal is tor,” a clear reference to Google. But pean Commission, the EU's execu- won’t be getting an immediate wind- E.ON 73.5 26.11 1.44 –35.3 –17.8 Nestle S.A. 153.7 43.52 0.05 –6.4 6.9 crosoft will be able to greatly boost Intel INTC 46.80 19.40 0.03 0.15% Germany (Multiutilities) Switzerland (Food Products) really about is scale.” he said: “We think we have a good tive arm, said the regulator hadn't fall from the deal. Microsoft shares their combined market share. IBM IBM 4.70 117.26 –0.02 –0.02% Diageo 41.5 9.16 1.44 3.5 –2.3 Novartis 115.5 47.38 ... –24.3 –30.9 The deal narrows the gap with case for how this [deal] improves been “informed about the details of advanced 21 cents to $23.68. The deal comes as Microsoft has U.K. (Distillers & Vintners) Switzerland (Pharmaceuticals) JPMorgChas JPM 28.20 37.77 –0.31 –0.81% Google but the new partners remain competition.” the transaction.” She declined to Ms. Bartz downplayed the lack of begun garnering positive buzz for British Amer Tob 61.1 18.40 1.10 –1.4 26.5 GlaxoSmithKline 109.8 11.71 –0.09 0.3 –18.4 JohnsJohns JNJ 8.90 61.16 0.24 0.39% U.K. (Tobacco) U.K. (Pharmaceuticals) a distant second. Microsoft and Ya- Last year, the U.S. Department of comment further, beyond saying a big upfront payment from Mi- Bing, which it launched in early KftFoods KFT 6.00 28.54 0.07 0.25% hoo combined accounted for less Justice derailed a proposed that the commission “keeps this sec- crosoft. “As far as we’re concerned, June. But even with Bing, Mr. Ball- Royal Dutch Shell A 92.5 18.54 0.98 –20.6 –33.4 Credit Suisse Grp 53.0 48.54 –0.16 –8.4 –26.7 McDonalds MCD 7.50 56.41 –0.06 –0.11% U.K. (Integrated Oil & Gas) Switzerland (Banks) than half of Google’s 65% share of search-ad partnership between Goo- tor, as others, under review.” the boatload of cash is preserving mer made it clear in a recent inter- Merck MRK 13.80 29.87 –0.15 –0.50% BNP Paribas S.A. 72.1 49.07 0.92 –23.0 –37.3 Allianz SE 44.6 70.06 –0.34 –35.5 –43.2 searches in the U.S. market in June, gle and Yahoo after concluding that Internet users won’t notice a dra- our revenue line,” Ms. Bartz said. view that he still favored a deal with Microsoft MSFT 67.30 23.80 0.33 1.41% France (Banks) Germany (Full Line Insurance) according to research firm Com- it would give Google too much con- matic difference on either Yahoo or “Having an upfront payment didn’t Yahoo to help accelerate Microsoft’s Assicurazioni Gen 31.5 15.88 0.83 –27.7 –35.6 Anglo Amer 40.1 18.23 –0.68 –37.4 –20.7 Pfizer PFE 51.20 15.75 –0.28 –1.75% Italy (Full Line Insurance) U.K. (General Mining) ProctGamb PG 8.90 56.12 0.41 0.74% score. Microsoft handled 8.4% of trol over the market. And under the Microsoft’s sites, since the technol- really help us from an operating search business and the creation of Intesa Sanpaolo 41.5 2.49 0.81 –31.2 –45.0 Astrazeneca 66.9 28.03 –0.95 17.3 –12.7 3M MMM 4.40 68.72 –1.16 –1.66% searches last month and Yahoo ac- Obama administration, the Justice ogy involved in the exchange oper- standpoint.” a more serious competitor to Goo- Italy (Banks) U.K. (Pharmaceuticals) TravelersCos TRV 3.60 42.63 –0.72 –1.66% counted for just under 20%. Department is promising to review ates behind the scenes. Ms. Bartz Yahoo anticipates that the deal gle. Tesco 48.1 3.73 0.76 –0.2 2.7 Barclays 53.3 2.95 –1.02 –11.9 –51.7 The transaction is subject to a reg- deals more rigorously. said the Yahoo branding will remain will save the company $200 million —Joann S. Lublin, Fawn Johnson U.K. (Food Retailers & Wholesalers) U.K. (Banks) UnitedTech UTX 4.40 53.20 0.76 1.45% ulatory review, but the companies A key U.S. antitrust lawmaker on the top of Yahoo search pages but HSBC Hldgs 161.4 5.72 0.72 –22.6 –32.4 Banco Santander 113.1 9.87 –1.15 –14.6 –10.0 Verizon VZ 19.50 31.98 0.58 1.85% in capital expenditures and gener- and Jessica Hodgson U.K. (Banks) Spain (Banks) WalMart WMT 15.90 49.37 0.45 0.92% said they expect it could be sealed by said the deal warrants “careful scru- the results will say “powered by ate $500 million in operating in- contributed to this article. Sources: Dow Jones Indexes; WSJ Market Data Group Source: WSJ Market Data Group

Hedge funds Credit-default swaps: European companies Arcelor posts loss, but is upbeat BHP shifts iron-ore pricing Tracking Dow Jones TOTAL RETURN for rolling periods, net of fees* At its most basic, the pricing of credit-default swaps measures how much a buyer has to pay to purchase-and By Robert Guy Matthews and China from our Kazakhstan oper- Mittal said. “But we are thinking a re- Hedge Benchmark One week One month One quarter Year to date One year how much a seller demands to sell-protection from default on an issuer's debt. The snapshot below gives a ations.” covery could happen in the next two Merger Arbitrage -0.07% 0.54% 2.3% 4.7% -3.8% as industry overhauls terms sense which way the market was moving yesterday. ArcelorMittal, the world’s largest Construction of roads, buildings quarters.” credit Event Driven 0.17% 0.75% 4.3% 7.1% -20.8% By Robert Guy Matthews Equity Market Neutral -0.33% 0.00% -0.9% -3.3% -11.6% steelmaker, swung to a $792 million and other infrastructure is behind In North America, just three out of ore annually, more steelmakers are Equity Long/Short 0.16% 0.98% 2.9% 1.8% -15.4% loss after charges in the second quar- the uptick in demand in those re- the company’s nine blast furnaces opting out of the system and hoping Showing the biggest improvement... And the most deterioration ter and said a recovery is strengthen- gions, he added. China, he predicted, are operating or planning to come BHP Billiton Ltd., the world’s that they will be able to buy iron ore markets & *Estimates as of 07/28/09, after fees; Source: www.djhedgefundindexes.com CHANGE, in basis points CHANGE, in basis points ing outside of the U.S. and Western will need 10% more steel in 2010. back online as of now. In Europe, 15 of largest miner, said it settled iron- at below contract prices. Yesterday Yesterday Five-day 28-day Yesterday Yesterday Five-day 28-day Europe, prompting a moderate in- Steel demand is generally thought the company’s 25 blast furnaces are ore price negotiations with more As a result, steel prices world- Rallye "1,012" –19 –149 –314 Valeo 237 15 –36 –53 crease in prices and output. to be a leading indicator for the expected to be online during the third than half of its steel industry cus- wide may become more volatile as dealmakers Fresenius 206 –12 –17 –27 ITV 448 15 –26 –22 The company said it expects an- world’s economies because of its use quarter. Blast furnaces are used to tomers, with a portion of buyers the raw material, iron ore, fluctu- Credit derivatives Alliance Boots Hldgs 329 –12 –31 –73 Vivendi 153 17 431 other two quarters of weak demand in automobiles, commercial and resi- make steel. agreeing to annual contract rates ates along the lines of supply and de- Legal & Gen Gp 277 –8 –61 –150 ArcelorMittal Fin 374 22 –4 –45 Spreads on credit derivatives are one way the market rates in those two markets. Nonetheless, dential construction, road building ArcelorMittal said that the pres- mand. BHP is hoping that it will Prudential 188 –7 –54 –89 AB Volvo 330 25 –19 –77 that are 33% below last year’s prices creditworthiness. Regions that are treading in rough waters can company executives said in an inter- and consumer goods such as washing sure to close steel facilities perma- and the remaining agreeing to nego- boost its profits in more frequent ne- Eurpn Aero Defence & Space Co Eads95 –6 –20 –38 GKN Hldgs 258 26 –21 –73 see spreads swing toward the maximum—and vice versa. Indexes view they expect an overall improve- machines. nently has eased somewhat. But be- gotiations. C de Aho Y Monte de Piedad de Madrid222 –5 –51 –74 Contl 750 26 –116 –184 tiate prices quarterly. below are for five-year swaps. ment during the third quarter. Last year, when the world’s credit cause recovery is so slow and unpre- The miner said the recent negoti- Rep Irlnd 142 –5 –20 –42 Peugeot 337 30 4 –64 The deal to set prices quarterly “We believe the worst is over,” crisis hit and demand for commodi- dictable, there is a lingering possibil- ations reflect only about half of its Markit iTraxx Indexes SPREAD RANGE, in pct. pts. Norske Skogindustrier "1,140" –5 –56 –88 Renault 366 40 1 –64 based on the spot market and in- Mid-spread, since most recent roll Lakshmi Mittal, chief executive of Ar- ties fell dramatically, steelmakers ity that more closures could occur. volume and that negotiations are Nationwide Bldg 140 –5 –24 –30 TUI 1737 93 42 235 dexed futures markets represents a Index: series/version in pct. pts. Mid-price Coupon Maximum Minimum Average celorMittal, said in an interview. were caught with too much steel and Steel prices around the globe are continuing for the remaining 47% of Europe: 11/1 0.95 104.08% 0.02% 1.87 0.90 1.31 Source: Markit Group breakthrough for BHP and the indus- “Clearly in the third quarter, we will too few buyers. They are still strug- starting to rise again, even in North try. Spot market prices more imme- its iron ore volumes with steel cus- Eur. High Volatility:11/1 1.81 108.50 0.04 3.89 1.75 2.61 have improved results.” Already, the gling to get back into profitability, as America and Western Europe. The in- tomers, including those in China. Europe Crossover:11/1 6.49 111.96 0.10 9.71 6.33 7.82 diately reflect high and lower de- US: Bank revenues from equity capital markets company is restarting mills and blast most every major steelmaker has re- crease in China, Brazil and other de- Chinese steelmakers are BHP’s Asia ex-Japan IG: 11/1 1.33 109.71 0.04 3.84 1.33 2.33 mand and would allow BHP to more furnaces in anticipation of a stronger corded large losses all year. veloping countries, reflects an in- largest and most important custom- Japan: 11/1 1.52 116.16 0.05 4.33 1.41 2.40 Behind every IPO, n n quickly capitalize on upswings in de- Equity capital markets Debt capital markets (both in billions, left axis) second half. Despite encouraging signs in de- crease in actual demand, while in the ers. The two sides have been wres- follow-on or mand. It would also allow steelmak- Note: Data as of July 28 The steelmaker, which a year ear- veloping regions, Mr. Mittal cau- U.S. and Western Europe, it reflects a tling for months over the price of convertible equity ECM as a percentage of total ers to save when demand is low. 6 75% lier reported a profit of $5.84 billion, tioned that recovery would be slow, destocking of inventories. iron ore, a necessary ingredient in WSJ.com In percentage points offering is one or (right axis) The agreements weaken the de- Spreads t said that there were sustained signs of though, hopefully, steady. “We are ex- Included in the second-quarter the production of steel. more investment cades-old system of settling iron ore Follow the markets throughout Spreads on five- 4.00 recovery in India, Russia, Eastern Eu- pecting our volumes to increase but loss was $1.2 billion in inventory Chinese steelmakers have been banks. At right, prices on an annual basis, which the day, with updated stock year swaps for 4 50 rope and Brazil amid new construc- average steel prices should be stable write-downs and costs related to tem- seeking a 50% discount, to reflect 3.00 investment banks BHP has increasingly criticized as quotes, news and commentary corporate debt; Australia tionand China’s economic-stimulus in- or slightly down.” porary unemployment as ArcelorMit- the weakened world economy and t historical and year- outdated.

at WSJ.com/Europe. based on Markit 2.00 itiatives. Output is increasing faster in The drag on profit is coming tal kept its global operations running their growing dominance in the pur- t to-date revenues 2 25 The “current settlements are in- Also, receive email alerts that iTraxx indexes. 1.00 those economies than in the U.S. or mainly from the U.S. and Western Eu- at 50% of capacity because of a slump chase of iron ore—far steeper than Asia ex-Japan IG from global equity- Index roll Western Europe, Mr. Mittal said. rope. While the company said that au- in steel demand from customers in dicative of continued progress to- the 33% BHP announced Wednes- summarize the day’s trading in capital-market 0 “India mills are operating at full tomotive demand is picking up, con- the automotive and construction sec- wards transparent market pricing,” day. The 33% figure is in line with Europe and Asia. (ECM) deals To sign up, go to Feb. Mar. April May June July 0 0 capacity,” he said. “Our products struction and other markets aren’t ex- tors. BHP said in a statement Wednesday. contracts between Rio Tinto Ltd. 2009 WSJ.com/Online Today 2003 2004 2005 2006 2007 2008 2009 from Ukraine are operating at higher pected to turn around for months. “It Second-quarter revenue fell 60% While some of BHP’s steel cus- and Japanese, Korean and Taiwan- Source: Markit Group Source: Dealogic capacity. We are shipping to Turkey could take up to three quarters,” Mr. year-to-year to $15.2 billion. tomers will still purchase their iron ese steelmakers. 6 THURSDAY, JULY 30, 2009 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. THURSDAY, JULY 30, 2009 27 CORPORATE NEWS GLOBAL MARKETS LINEUP

Commodities Prices of futures contracts with the most open interest Currencies London close on July 29 EXCHANGE LEGEND: CBOT: Chicago Board of Trade; CME: Chicago Mercantile Exchange; ICE-US: ICE Futures U.S.MDEX: Bursa Malaysia Per In Per In Derivatives Berhad; LIFFE: London International Financial Futures Exchange; COMEX: Commodity Exchange; LME: London Metals Exchange; AMERICAS Per euro In euros U.S. dollar U.S. dollars EUROPE Per euro In euros U.S. dollar U.S. dollars NYMEX: New York Mercantile Exchange;ICE-EU: ICE Futures Europe ONE-DAY CHANGE Contract Contract Argentina peso-a 5.3668 0.1863 3.8163 0.2620 Euro zone euro 1 1 0.7111 1.4063 Sanofi nears Merial deal Commodity Exchange Last price Net Percentage high low Brazil real 2.6640 0.3754 1.8944 0.5279 1-mo. forward 1.0000 1.0000 0.7111 1.4064 Corn (cents/bu.) CBOT 328.00 –1.75 –0.53% 707.00 302.00 Canada dollar 1.5296 0.6538 1.0877 0.9194 3-mos. forward 1.0000 1.0000 0.7111 1.4062 Currently, Sanofi and Merck exploring its options and evaluating Soybeans (cents/bu.) CBOT 916.00 –11.00 –1.19 1,557.50 670.00 1-mo. forward 1.5294 0.6539 1.0875 0.9195 6-mos. forward 1.0000 1.0000 0.7111 1.4063 Drug maker seeking each own half of Merial, which had the potential of selling its stake in Wheat (cents/bu.) CBOT 511.50 –4.75 –0.92 1,072.00 505.00 3-mos. forward 1.5291 0.6540 1.0873 0.9197 Czech Rep. koruna-b 25.586 0.0391 18.194 0.0550 sales last year of more than $2.6 bil- Merial or in Schering-Plough’s Inter- 6-mos. forward 1.5288 0.6541 1.0871 0.9199 Live cattle (cents/lb.) CME 89.250 –1.325 –1.46 118.500 81.250 Denmark krone 7.4455 0.1343 5.2944 0.1889 to buy out partner lion from products including Front- vet animal health business. Chile peso 763.27 0.001310 542.75 0.001842 Cocoa ($/ton) ICE-US 2,803 –76 –2.64 3,237 1,950 Hungary forint 269.50 0.003711 191.64 0.005218 line flea and tick treatments. Merck has received a high level Colombia peso 2905.63 0.0003442 2066.15 0.0004840 Norway krone 8.7845 0.1138 6.2465 0.1601 Coffee (cents/lb.) ICE-US 122.85 0.05 0.04% 183.30 109.00 in animal-drug firm Merckisclosetosellingthestakein of interest from several big pharma- Ecuador US dollar-f 1.4063 0.7111 1 1 Poland zloty 4.1823 0.2391 2.9740 0.3362 Sugar (cents/lb.) ICE-US 18.56 0.06 0.32 18.57 11.05 part to avoid any concerns from anti- ceutical companies for Intervet, Mexico peso-a 18.6391 0.0537 13.2540 0.0754 Russia ruble-d 44.383 0.02253 31.560 0.03169 Cotton (cents/lb.) ICE-US 59.12 unch. unch. 101.50 45.25 By Jeanne Whalen trust regulators that its pending $41 which had sales of $3 billion last Peru sol 4.2040 0.2379 2.9894 0.3345 Sweden krona 10.5155 0.0951 7.4775 0.1337 Crude palm oil (ringgit/ton) MDEX 2,113.00 –27 –1.26 2,685 1,965 And Jeffrey McCracken billionacquisitionofSchering-Plough year, according to one person famil- Uruguay peso-e 32.837 0.0305 23.350 0.0428 Switzerland franc 1.5250 0.6557 1.0844 0.9222 Cocoa (pounds/ton) LIFFE 1,778 –46 –2.52 1,985 1,177 Corp. would make it too dominant in iar with the matter. U.S. dollar 1.4063 0.7111 1 1 1-mo. forward 1.5245 0.6559 1.0841 0.9225 Robusta coffee ($/ton) LIFFE 1,484 9 0.61 2,324 1,250 Sanofi-Aventis SA is close to an- theanimal medication business. Drug companies see animal medi- Venezuela bolivar 3.02 0.331153 2.15 0.465701 3-mos. forward 1.5235 0.6564 1.0833 0.9231 nouncing a deal to buy Merck & Co.’s Asked about the Merial stake on cations as attractive because they Copper (cents/lb.) COMEX 247.75 –4.30 –1.71 375.35 129.55 ASIA-PACIFIC 6-mos. forward 1.5212 0.6574 1.0817 0.9244 half of a joint venture that makes a conference call with analysts are subject to far less competition Gold ($/troy oz.) COMEX 929.70 –12.00 –1.27 1,060.00 494.00 Australia dollar 1.7184 0.5820 1.2219 0.8184 Turkey lira 2.0976 0.4767 1.4916 0.6704 drugs for animals, according to peo- Wednesday, Sanofi chief executive from cheap generics than human Silver (cents/troy oz.) COMEX 1325.80 –48.20 –3.51 2,009.00 886.00 China yuan 9.6071 0.1041 6.8315 0.1464 U.K. pound 0.8570 1.1669 0.6094 1.6410 ple familiar with the matter. Christopher Viehbacher said: “We pharmaceuticals. Aluminum ($/ton) LME 1,803.00 –33.00 –1.80 2,980.00 1,288.00 Hong Kong dollar 10.8986 0.0918 7.7499 0.1290 1-mo. forward 0.8570 1.1668 0.6094 1.6409 Analysts and bankers value like the animal health business. If ThenewscameasSanofiraisedits Tin ($/ton) LME 14,025.00 –375.00 –2.60 22,500.00 9,750.00 India rupee 67.8891 0.0147 48.2750 0.0207 3-mos. forward 0.8572 1.1666 0.6095 1.6406 Associated Press Merck’s 50% stake in the Merial joint there was an opportunity to extend full-yearearningsguidance,sayingit Copper ($/ton) LME 5,420.00 –200.00 –3.56 8,070.00 2,815.00 Indonesia rupiah 14000 0.0000714 9955 0.0001005 6-mos. forward 0.8572 1.1666 0.6096 1.6405 ventureat$3billionto$5billion.The our participation in that market we now expects 10% growth in its 2009 Sanofi CEO Christopher Viehbacher said he didn’t see sales of the H1N1 flu virus Lead ($/ton) LME 1,755.00 –37.00 –2.06 2,225.00 870.00 Japan yen 133.63 0.007484 95.02 0.010524 MIDDLE EAST/AFRICA companies could announce a deal as would welcome it. But you really earningspershare,insteadofaprevi- vaccine as affecting the long-term valuation of the company. Zinc ($/ton) LME 1,648.00 –67.00 –3.91 1,915.00 1,065.00 1-mo. forward 133.59 0.007486 94.99 0.010527 Bahrain dinar 0.5302 1.8861 0.3770 2.6524 soonasthisweek,thoughtalkscould would have to ask Merck about the ous forecast of at least 7% growth. Nickel ($/ton) LME 16,375 –625 –3.68 21,195 9,000 3-mos. forward 133.51 0.007490 94.94 0.010533 Egypt pound-a 7.8032 0.1282 5.5488 0.1802 6-mos. forward 133.34 0.007499 94.82 0.010546 still break down or be delayed, these timing of decisions.” Net profit for the second quar- Crude oil ($/bbl.) NYMEX 63.35 –3.88 –5.77 142.60 44.28 Israel shekel 5.3552 0.1867 3.8080 0.2626 Malaysia ringgit-c 4.9692 0.2012 3.5335 0.2830 people said. News of the potential A Merck spokeswoman declined ter rose 4.9% to Œ1.06 billion ($1.5 euro and strong sales of the diabe- Sales grew 11% to Œ7.44 billion. Heating oil ($/gal.) NYMEX 1.6958 –0.0926 –5.18 4.0400 1.2589 Jordan dinar 0.9960 1.0040 0.7083 1.4119 New Zealand dollar 2.1446 0.4663 1.5250 0.6558 deal came as Sanofi reported a 4.9% to comment about an impending billion) from a year ago, boosted by tes treatment Lantus and the anti- Mr. Viehbacher tried to reassure RBOB gasoline ($/gal.) NYMEX 1.8201 –0.0591 –3.14 3.0875 1.1450 Kuwait dinar 0.4016 2.4902 0.2856 3.5020 Pakistan rupee 116.371 0.0086 82.750 0.0121 rise in second-quarter profit. sale. Merck has said that it has been the dollar’s strength against the clotting drugs Lovenox and Plavix. investors about Sanofi’s long-term Natural gas ($/mmBtu) NYMEX 3.548 –0.139 –3.77 12.059 3.366 Lebanon pound 2112.97 0.0004733 1502.50 0.0006656 Philippines peso 67.608 0.0148 48.075 0.0208 Saudi Arabia riyal 5.2738 0.1896 3.7501 0.2667 future. Some of Sanofi’s biggest Brent crude ($/bbl.) ICE-EU 66.53 –3.35 –4.79 134.00 44.13 Singapore dollar 2.0344 0.4916 1.4466 0.6913 South Africa rand 11.0942 0.0901 7.8890 0.1268 Gas oil ($/ton) ICE-EU 549.50 –22.00 –3.85 1,086.00 411.50 drugs will lose patent protection South Korea won 1748.45 0.0005719 1243.30 0.0008043 and face competition from generics United Arab dirham 5.1651 0.1936 3.6729 0.2723 Source: Thomson Reuters; WSJ Market Data Group Taiwan dollar 46.218 0.02164 32.865 0.03043 in the coming years, which will hit WSJ.com Thailand baht 47.863 0.02089 34.035 0.02938 SDR -f 0.9054 1.1045 0.6438 1.5533 revenues hard. But cost cuts and Follow the markets throughout the day, with updated stock quotes, news and commentary at a-floating rate b-commercial rate c-government rate c-commercial rate d-Russian Central Bank rate f-Special Drawing Rights from the Inter- other sources of sales growth will WSJ.com/Europe. Also, receive email alerts that summarize the day’s trading in Europe and Asia. national Monetary Fund ; based on exchange rates for U.S., British and Japanese currencies. mean that the company by 2013 will To sign up, go to WSJ.com/Online Today be able to maintain sales and profits Note: Based on trading among banks in amounts of $1 million and more, as quoted by Thomson Reuters. EUROPE ON €1.50 A WEEK at 2008 levels, Mr. Viehbacher said. Thecompanyiscountingonemerg- ing markets, vaccines, nonprescrip- Stock indexes from around the world, grouped by region. Shown in local-currency terms. tion medicines, Lantus and some new Major stock market indexes products to fuel this sales growth. Price-to- PREVIOUS SESSION PERFORMANCE Price-to- PREVIOUS SESSION PERFORMANCE Recent studies suggesting a pos- earnings ratio* Region/Country Index Close Net change Percentage change Yr.-to-date 52-wk. earnings ratio* Region/Country Index Close Net change Percentage change Yr.-to-date 52-wk. NEW Expanded NEW European sible link between Lantus and cancer 26 EUROPE DJ Stoxx 600 220.37 1.83 0.84% 11.9% –22.4% … Russia RTSI 973.78 –28.02 –2.80% 54.1% –50.0% caused investor concern that Lantus European Coverage Mobile Reader 14 DJ Stoxx 50 2256.21 15.26 0.68 9.2% –21.7% 9 Spain IBEX 35 10661.6 –2.4 –0.02 15.9% –9.8% sales could suffer. Mr. Viehbacher 19 Euro Zone DJ Euro Stoxx 239.66 2.50 1.05 7.6% –24.2% 15 Sweden OMX Stockholm 262.77 1.61 0.62% 28.7% –5.0% The day’s global business and Stay connected with Europe said Wednesday that he believes the 16 DJ Euro Stoxx 50 2600.31 27.23 1.06 6.1% –22.8% 12 Switzerland SMI 5787.19 24.39 0.42 4.6% –18.6% financial news reported from a when you’re on the move. Get medical community has concluded 9 Austria ATX 2207.14 16.98 0.78 26.1% –39.4% … Turkey ISE National 100 40376.64 374.99 0.94 50.3% –2.3% local perspective...so you get real-time stock quotes, create that the studies were inconclusive and flawed. He said Sanofi hasn’t 12 Belgium Bel-20 2120.37 11.59 0.55 11.1% –30.0% 11 U.K. FTSE 100 4547.53 18.69 0.41 2.6% –16.1% intelligence that’s focused and key word alerts, save and share seen any negative effect on Lantus 9 Czech Republic PX 994.3 7.7 0.78 15.9% –32.5% 21 ASIA-PACIFIC DJ Asia-Pacific 111.67 –1.12 –0.99 19.3% –17.8% relevant. data. sales yet. Because the studies were 16 Denmark OMX Copenhagen 283.73 –6.67 –2.30% 25.4% –26.1% … Australia SPX/ASX 200 4142.8 –26.7 –0.64 11.3% –16.1% published in late June, any negative 13 Finland OMX Helsinki 5645.52 1.74 0.03 4.5% –33.4% … China CBN 600 28036.75 –1503.76 –5.09 89.9% 20.6% NEW UK News Page EUROPEAN Lifestyle effect wouldn’t be noticeable in the 12 France CAC-40 3365.62 34.65 1.04 4.6% –23.5% 17 Hong Kong Hang Seng 20135.50 –489.04 –2.37 40.0% –11.3% Coverage second-quarter results. UK-specific financial and political 20 Germany DAX 5270.32 95.58 1.85 9.6% –18.4% 18 India Sensex 15173.46 –158.48 –1.03 57.3% 6.2% Mr. Viehbacher played down the news keeps you on top of late- Fashion, travel, property, the arts potential for profits from the sale of … Hungary BUX 16487.90 6.51 0.04 34.7% –26.8% … Japan Nikkei Stock Average 10113.24 25.98 0.26 14.2% –24.3% breaking local developments. – all in Weekend Journal Europe. H1N1 swine flu vaccine, saying the 9 Ireland ISEQ 2758.71 0.66 0.02 17.7% –37.9% … Singapore Straits Times 2604.06 –19.98 –0.76 47.8% –11.0% company is viewing the pandemic as 9 Italy FTSE MIB 20281.97 269.62 1.35 4.2% –28.6% 11 South Korea Kospi 1524.32 –1.71 –0.11 35.6% –3.4% a “public health issue and not as a 9 Netherlands AEX 277.32 3.08 1.12 12.8% –31.4% 15 AMERICAS DJ Americas 254.49 –2.72 –1.06 12.5% –23.7% REGIONAL Market NEW Video Centre business opportunity.” 10 Norway All-Shares 337.46 –3.27 –0.96 24.9% –30.6% … Brazil Bovespa 53468.77 –1002.77 –1.84 42.4% –10.3% Data Centers & More In an interview, Mr. Viehbacher 17 Poland WIG 33822.11 189.86 0.56 24.2% –20.3% 18 Mexico IPC 26626.11 –224.64 –0.84 19.0% –2.8% In-depth reports on the markets European news events in said the company probably won’t 14 Portugal PSI 20 7327.66 24.95 0.34 15.6% –13.4% that matter to European investors, live-action pictures, plus Video book any H1N1 vaccine sales until the fourth quarter. He declined to *P/E ratios use trailing 12-months, as-reported earnings including France, Germany, UK. Community, blogs, and more. Reuters Group PLC is the primary data provider for several statistical tables in The Wall Street Journal, including foreign stock quotations, futures and futures forecast how much profit Sanofi Note: Americas index data are as of 3:00 p.m. ET. Sources: Thomson Reuters; WSJ Market Data Group options prices, and foreign exchange tables. Reuters real-time data feeds are used to calculate various Dow Jones Indexes. would earn from H1N1 vaccine sales, saying it’s still unclear how many Dow Jones and Dow Jones Stoxx Indexes MSCI indexes doses the French drug maker will be able to produce. Price-to- Price-to- Developed and emerging-market regional and country indexes For global news with a European focus Dividendearnings PERFORMANCE (euros) PERFORMANCE (U.S. dollars) Dividendearnings PERFORMANCE (euros) PERFORMANCE (U.S. dollars) from MSCI Barra as of July 29, 2009 “There’ll certainly be some extra yield* ratio* Dows Jones Index Last Daily 52-wk. Last Daily 52-wk. yield* ratio* Dows Jones Index Last Daily 52-wk. Last Daily 52-wk. sales and profits associated with it. 2.55% 13 World -a % % 196.39 –0.76%–24.8% 4.41% 12 U.S. Select Dividend -b % % 558.41 –0.26%–20.7% Price-to- LOCAL-CURRENCY Dividend earnings PERFORMANCE there’s only one route to take But…it’s kind of a one-off effect, and 2.21% 14 Global Dow 1162.50 –0.04% –21.2% 1746.27 –0.27%–28.4% 4.40% 16 Infrastructure 1286.80 –0.08% –15.9% 1735.34 –0.32%–23.5% yield ratio Morgan Stanley Index Last Daily YTD 52-wk. I don’t really see it as affecting the 3.37% 26 Stoxx 600 220.40 0.84% –22.4% 231.43 0.00%–29.9% 1.72% 7 Luxury 751.30 1.17% –12.0% 900.98 0.93%–20.0% 3.00% 16 ALL COUNTRY (AC) WORLD* 262.16 –0.30% 15.1% –26.2% long term valuation of the com- You want global business and financial news you can trust. 3.53% 17 Stoxx Large 200 237.00 0.87% –22.7% 247.53 0.04%–30.2% 6.32% 5 BRIC 50 364.50 –1.12% –15.8% 491.51 –1.35%–23.4% 3.00% 17 World (Developed Markets) 1,028.21 –0.39% 11.7% –26.7% pany,” he said. 2.54% -17 Stoxx Mid 200 200.60 0.63% –20.2% 209.52 –0.20%–27.9% 4.31% 12 Africa 50 711.00 –0.63% –26.1% 638.29 –0.86%–32.8% 2.70% 18 World ex-EMU 120.87 –0.23% 12.3% –25.2% Mr.Viehbacher’s comments are a But you want it with a European accent. WSJ.com 2.74% -28 Stoxx Small 200 124.80 0.68% –21.2% 130.26 –0.15%–28.7% 3.52% 7 GCC % % 1383.98 –0.93%–51.2% 2.80% 19 World ex-UK 1,026.95 –0.28% 11.2% –25.9% contrast with recent remarks from 3.35% 19 Euro Stoxx 239.70 1.05% –24.2% 251.69 0.22%–31.5% 3.17% 13 Sustainability 733.10 0.55% –18.7% 872.37 –0.05%–26.3% 3.80% 16 EAFE 1,391.68 –0.34% 12.5% –29.3% Welcome to the new European edition of WSJ.com. The GlaxoSmithKline PLC Chief Execu- 3.51% 14 Euro Stoxx Large 200 256.00 1.11% –24.6% 267.21 0.28%–31.8% 2.43% 13 Islamic Market -a % % 1707.53 –1.02%–22.1% 2.90% 14 Emerging Markets (EM) 836.59 0.35% 47.5% –23.0% The new European edition tive Andrew Witty, who said last authoritative website that combines the most respected 2.58% -12 Euro Stoxx Mid 200 222.10 0.75% –22.5% 231.73 –0.08%–30.0% 2.71% 12 Islamic Market 100 1558.80 0.18% –10.6% 1880.19 –0.42%–19.0% 4.40% 11 EUROPE 76.24 –0.91% 9.8% –24.7% week that his company’s swine-flu 2.82% 16 Euro Stoxx Small 200 135.30 0.79% –21.6% 141.06 –0.04%–29.1% 2.71% 12 Islamic Turkey -c % % % % 4.60% 12 EMU 154.31 –1.29% 8.6% –33.8% news and analysis on the web, with insightful coverage vaccine and other pandemic prod- Subscribe today at: 5.96% 8 Stoxx Select Dividend 30 1218.60 0.79% –27.6% 1466.42 –0.04%–34.6% 2.04% 13 DJ U.S. TSM % % 10024.50 –0.45%–23.5% 4.10% 13 Europe ex-UK 83.45 –0.81% 7.6% –24.2% ucts would make a “significant con- written by Europeans, for Europeans. 5.19% 9 Euro Stoxx Select Div 30 1431.00 0.88% –33.7% 1728.67 0.04%–40.1% % DJ-UBS Commodity 116.90 –1.79% –35.9% 119.33 –2.60%–42.1% 5.50% 9 Europe Value 85.37 –1.24% 10.1% –25.4% tribution” to Glaxo’s profits. www.services.wsje.com/euwsjcom *Fundamentals are based on data in U.S. dollar. Footnotes: a-in US dollar. b-dividends reinvested. c-in local currency. Note: All data as of 2 p.m. ET. Source: Dow Jones Indexes 3.30% 15 Europe Growth 66.18 –0.57% 9.5% –24.0% If you need to think globally but act locally, subscribe to Mr. Viehbacher said Sanofi has 3.50% 12 Europe Small Cap 130.38 –1.12% 29.1% –25.7% WSJ.com. The best of both worlds for just €1.50 a week. signed contracts to supply H1N1 vac- Or call: +44 (0)20 7309 7799 cine to the U.S., France and Mexico, Cross rates U.S.-dollar and euro foreign-exchange rates in global trading 2.70% 7 EM Europe 216.05 –2.86% 36.0% –47.2% between 08.00 – 17.00 BST but isn’t rushing to sign additional 5.00% 8 UK 1,346.12 –1.25% 2.4% –19.2% orders. The company wants to re- USD GBP CHF SEK RUB NOK JPY ILS EUR DKK CDN AUD 3.10% 13 Nordic Countries 118.70 –0.59% 21.0% –27.8% tain some flexibility so it can ship Australia 1.2219 2.0051 1.1268 0.1634 0.0387 0.1956 0.0129 0.3209 1.7184 0.2308 1.1234 ... 2.00% 6 Russia 565.08 –3.64% 37.1% –60.9% doses to countries that need them Canada 1.0877 1.7848 1.0030 0.1455 0.0345 0.1741 0.0114 0.2856 1.5296 0.2054 ... 0.8901 4.20% 10 South Africa 631.64 –1.12% 9.1% –11.8% the most, he said. Denmark 5.2944 8.6881 4.8823 0.7080 0.1678 0.8476 0.0557 1.3903 7.4455 ... 4.8677 4.3329 3.40% 17 AC ASIA PACIFIC EX-JAPAN 359.79 1.54% 45.5% –16.3% Euro 0.7111 1.1669 0.6557 0.0951 0.0225 0.1138 0.0075 0.1867 ... 0.1343 0.6538 0.5820 Sanofi will charge between Œ5 1.70%-117 Japan 575.18 0.28% 8.5% –31.1% Israel 3.8080 6.2489 3.5116 0.5093 0.1207 0.6096 0.0401 ... 5.3552 0.7193 3.5011 3.1165 2.40% 16 China 62.25 2.10% 52.6% 0.3% and Œ7 a dose in developed countries, Japan 95.0200 155.9278 87.6245 12.7075 3.0108 15.2117 ... 24.9527 133.6266 17.9473 87.3627 77.7644 1.10% 18 India 607.32 –0.27% 64.5% 11.5% Œ3 to Œ4 in “middle-income” coun- Norway 6.2465 10.2505 5.7603 0.8354 0.1979 ... 0.0657 1.6404 8.7845 1.1798 5.7431 5.1121 1.30% 20 Korea 427.36 0.15% 39.2% –6.7% tries and less in poorer countries, he Russia 31.5600 51.7900 29.1037 4.2207 ... 5.0524 0.3321 8.2878 44.3828 5.9610 29.0167 25.8287 ©2009 Dow Jones & Company Inc. All rights reserved. 4.40% 29 Taiwan 261.07 1.69% 50.6% –11.1% said. The company has also pledged Sweden 7.4775 12.2705 6.8955 ... 0.2369 1.1971 0.0787 1.9636 10.5155 1.4123 6.8749 6.1195 *Money back guarantee: You can cancel at any time and receive a refund for the unused part of your subscription. to donate 100 million doses to the Switzerland 1.0844 1.7795 ... 0.1450 0.0344 0.1736 0.0114 0.2848 1.5250 0.2048 0.9970 0.8875 2.20% 22 US BROAD MARKET 1,082.62 –0.23% 10.2% –23.1% WHO for use in the poorest nations. U.K. 0.6094 ... 0.5620 0.0815 0.0193 0.0976 0.0064 0.1600 0.8570 0.1151 0.5603 0.4987 1.60% -40 US Small Cap 1,439.22 0.02% 15.4% –20.4% —Mimosa Spencer and Jonathan U.S. ... 1.6410 0.9222 0.1337 0.0317 0.1601 0.0105 0.2626 1.4063 0.1889 0.9194 0.8184 3.50% 13 EM LATIN AMERICA 3,204.84 –0.37% 54.3% –32.6% Rockoff contributed to this article. Source: Thomson Reuters via WSJ Market Data Group *Twenty-three developed and 26 emerging markets Source: MSCI Barra 26 THURSDAY, JULY 30, 2009 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. THURSDAY, JULY 30, 2009 7 Advertisement [ INTERNATIONAL INVESTMENT FUNDS www.WSJ.com ] Advertisement CORPORATE NEWS Continued from previous page NAV — %RETURN — NAV — %RETURN — NAV — %RETURN — FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR NAV — %RETURN — FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR PF (LUX)-USD Sov Liq-Pdi OT OT LUX 07/28 USD 100.85 0.3 1.4 NS Nordic Focus EUR NO EQ LUX 07/29 EUR 66.25 32.8 –16.8 NS Bonds Eur Corp A OT OT LUX 07/27 EUR 22.31 7.6 5.4 0.5 PF (LUX)-Water-Pca GL EQ LUX 07/28 EUR 111.84 8.6 –13.1 –15.2 Nordic Focus NOK NO EQ LUX 07/29 NOK 72.23 32.8 –16.8 NS Bonds Eur Hi Yld A OT OT LUX 07/27 EUR 18.26 37.3 –4.0 –7.6 EFG-Hermes Saudi Arabia EquityEA EQ SAU 07/21 SAR 5.60 18.2 –41.1 NS Peugeot-Citroën PF (LUX)-WldGovBds-Pca GL BD LUX 07/29 USD 161.27 –2.2 5.4 8.4 Nordic Focus SEK NO EQ LUX 07/29 SEK 74.19 32.8 –16.8 NS EFG-Hermes Telecom OT EQ BMU 05/29 USD 28.96 12.9 –18.6 –8.2 Bonds EURO A OT OT LUX 07/28 EUR 40.35 2.2 9.9 5.1 PF (LUX)-WldGovBds-Pdi GL BD LUX 07/29 USD 133.48 –2.2 5.4 8.4 Russia Fd OT OT LUX 07/29 EUR 6.11 83.1 –36.1 –25.1 Bonds Europe A OT OT LUX 07/27 EUR 38.46 1.5 9.1 4.0 n HSBC ALTERNATIVE INVESTMENTS LIMITED n POLAR CAPITAL PARTNERS LIMITED n SEB Fund 3 Bonds US MtgBkSec A OT OT LUX 04/29 USD 24.41 –4.7 11.9 0.0 T +44 20 7860 3074 F + 44 20 7860 3174 www.hail.hsbc.com records a loss Choice North America Eq. Fd US EQ LUX 07/29 USD 1.59 14.1 –21.3 –18.8 Bonds US OppsCoreplus A OT OT LUX 07/28 USD 35.00 11.0 11.5 8.0 Daimler posts a $1.45 billion loss International Fund Managers (Ireland) Limited PH - 353 1 670 660 Fax - 353 1 670 1185 Ethical Glbl Fd -D- OT OT LUX 07/29 USD 0.70 17.7 –22.5 –19.6 n HSBC Portfolio Selection Fund Global Technology OT EQ IRL 07/28 USD 11.27 43.8 –6.1 –12.5 Bonds World A OT OT LUX 07/27 USD 40.71 2.2 5.0 8.3 Japan Fund USD JP EQ IRL 07/29 USD 15.96 8.6 4.4 –6.8 Ethical Sweden Fd NO EQ LUX 07/29 SEK 36.52 32.4 3.3 –12.2 Sel Emerg Mkt Debt GL BD GGY 07/28 USD 309.23 25.9 0.6 2.3 Eq. China A OT OT LUX 07/28 USD 22.92 53.4 3.3 –8.5 Polar Healthcare Class I USDOT OT IRL 07/28 USD 11.45 NS NS NS Index Linked Bd Fd SEK OT BD LUX 07/29 SEK 12.85 0.9 3.2 4.6 amid sales slump Sel Emerg Mkt Equity GL EQ GGY 07/28 USD 183.40 40.0 –19.8 –13.1 Eq. ConcentratedEuropeA OT OT LUX 07/28 EUR 23.37 13.4 –23.6 –25.2 Luxury-vehicle sales Daimler Polar Healthcare Class R USDOT OT IRL 07/28 USD 11.45 NS NS NS Medical Fd OT EQ LUX 07/29 USD 2.95 2.8 –16.4 –9.8 Sel Euro Equity EUR US EQ GGY 07/28 EUR 83.91 13.9 –24.9 –27.3 Short Medium Bd Fd SEK NO MM LUX 07/29 SEK 8.80 1.1 2.0 2.8 Eq. Eastern Europe A OT OT LUX 07/28 EUR 17.91 35.5 –43.7 –34.4 Net profit/loss, in billions By David Pearson Sel European Equity EU EQ GGY 07/28 USD 157.74 14.7 –32.3 –24.6 n Hemisphere Management (Ireland) Limited Technology Fd -C- OT OT LUX 07/29 USD 0.18 NS NS NS Eq. Equities Global Energy OT OT LUX 07/28 USD 15.89 11.5 –34.7 –15.8 run into headwinds; Sel Glob Equity GL EQ GGY 07/28 USD 168.66 17.4 –24.8 –22.0 Discovery USD A OT OT CYM 06/30 USD 123.19 10.8 12.5 12.2 Technology Fd -D- OT OT LUX 07/29 USD 2.15 38.3 –9.4 –10.7 Eq. Euroland A OT OT LUX 07/28 EUR 9.34 1.9 –27.3 –27.0 Œ2.0 Sel Glob Fxd Inc GL BD GGY 07/28 USD 134.03 3.9 –8.6 –2.5 Elbrus USD A GL EQ CYM 05/29 USD 8.36 23.9 –48.7 –17.6 World Fd -C- OT OT LUX 07/29 USD 25.04 NS NS NS Eq. Euroland MidCapA OT OT LUX 04/30 EUR 14.61 1.4 –45.7 –33.8 PSA Peugeot-Citroën SA said Sel Pacific Equity AS EQ GGY 07/28 USD 125.95 39.3 –16.9 –11.2 Europn Conviction USD B EU EQ CYM 06/30 USD 132.65 5.0 17.6 11.1 World Fd -D- OT OT LUX 07/29 USD 1.90 18.5 –19.1 –14.4 Eq. EurolandCyclclsA OT OT LUX 07/27 EUR 15.70 14.3 –22.5 –20.5 dim full-year outlook shrinking vehicle sales pushed it Sel US Equity US EQ GGY 07/28 USD 111.32 10.5 –22.2 –18.7 Europn Forager USD B OT OT CYM 06/30 USD 199.88 11.7 0.4 –2.7 n SEB Fund 4 Eq. EurolandFinancialA OT OT LUX 07/27 EUR 10.14 20.3 –26.8 –28.3 1.0 Sel US Sm Cap Eq US EQ GGY 07/28 USD 152.19 16.4 –24.2 –21.7 Latin America USD A GL EQ CYM 06/30 USD 14.25 2.2 –4.7 14.7 into the red in the first half and Eq. Glbl Emg Cty A OT OT LUX 07/28 USD 8.52 42.4 –22.2 –15.4 Paragon Limited USD A OT OT CYM 12/31 USD 309.60 12.7 12.7 14.2 Short Bond Fd EUR -C- OT OT LUX 07/29 EUR 1.27 0.1 0.4 1.4 By Christoph Rauwald n SEB Sicav 2 Short Bond Fd EUR -D- OT OT LUX 07/29 NA 0.50 NS NS NS Eq. Global A OT OT LUX 07/28 USD 24.07 14.4 –21.1 –21.0 warned that it doesn’t expect the UK Fund USD A OT OT CYM 06/30 USD 171.84 3.6 5.7 1.6 0 Nordic Small Cap -C- OT OT LUX 07/29 EUR 105.16 NS NS NS Short Bond Fd SEK NO MM LUX 07/29 SEK 21.92 1.7 2.2 2.9 Eq. Global Technol A OT OT LUX 04/24 USD 4.46 22.1 –29.7 –21.6 European automobile market to re- n PT CIPTADANA ASSET MANAGEMENT Short Bond Fd USD US MM LUX 07/29 USD 2.49 –0.2 0.5 1.7 Eq. Gold Mines A OT OT LUX 07/28 USD 24.81 18.7 –11.4 –1.9 FRANKFURT—Daimler AG cover before the end of 2010. Tel: 521-3479 Fax: 521-3478 Website: www.ciptadana-asset.com n SEB Fund 5 Eq. Japan Sm Cap A OT OT LUX 07/28 JPY 1099.35 21.4 –15.1 –26.5 swung to a Œ1.02 billion ($1.45 bil- –1.0 The French car maker reported Indonesian Grth Fund EA EQ CYM 07/22 USD 97.52 69.0 –14.6 –8.7 Eq. Japan Target A OT OT LUX 07/29 JPY 1781.94 13.9 –5.6 –13.5 Alpha Bond Fd SEK -A- NO BD LUX 07/29 SEK 10.17 1.1 –0.3 0.4 lion) loss in the second quarter due a net loss of Œ962 million ($1.36 bil- n RUSSELL INVESTMENT GROUP Alpha Bond Fd SEK -B- NO BD LUX 07/29 SEK 8.80 1.1 –0.3 0.4 Eq. Pacific A OT OT LUX 07/28 USD 8.93 39.9 –15.6 –13.7 Multi-Style, Multi-Manager Funds www.russell.com Alpha Bond Fd SEK -C- NO BD LUX 07/29 SEK 25.46 1.0 –0.4 0.3 Eq. US ConcenCore A OT OT LUX 07/28 USD 19.60 20.7 –14.2 –12.9 to weak demand for luxury vehicles –2.0 lion) for the first six months of the Alpha Bond Fd SEK -D- NO BD LUX 07/29 SEK 7.93 1.0 –0.4 0.3 3Q2Q1Q 4Q 1Q 2Q Actions France A EU EQ IRL 07/28 EUR 599.58 6.4 –22.9 NS Eq. US Lg Cap Gr A OT OT LUX 07/28 USD 13.46 24.9 –26.9 –16.5 and confirmed that full-year reve- n Alpha Short Bd SEK -A- NO MM LUX 07/29 SEK 11.07 2.4 2.9 3.4 year, compared with a year-earlier MP ASSET MANAGEMENT INC. Core Eurozone Eq B EU EQ IRL 07/28 EUR 717.42 9.1 –19.6 NS Eq. US Mid Cap A OT OT LUX 07/27 USD 25.29 26.2 –23.5 –14.8 2008 ’09 Alpha Short Bd SEK -B- NO MM LUX 07/29 SEK 10.12 2.4 2.9 3.4 nue and sales are expected to come Tel: + 386 1 587 47 77 Euro Fixed Income A EU BD IRL 07/28 EUR 1175.58 3.8 –1.9 –3.5 net profit of Œ733 million. Revenue Alpha Short Bd SEK -C- NO MM LUX 07/29 SEK 21.65 2.4 2.8 3.3 Eq. US Multi Strg A OT OT LUX 07/28 USD 18.82 17.8 –25.6 –19.8 Source: the company MP-BALKAN.SI OT OT SVN 07/28 EUR 23.59 –10.1 –52.5 –48.2 Euro Fixed Income B EU BD IRL 07/28 EUR 1251.82 4.2 –1.3 –3.0 in significantly lower than in 2008. dropped 22% to Œ23.5 billion, re- Alpha Short Bd SEK -D- NO MM LUX 07/29 SEK 8.19 2.4 2.8 3.3 Eq. US Rel Val A OT OT LUX 07/28 USD 18.17 17.0 –23.8 –23.8 MP-TURKEY.SI OT OT SVN 07/28 EUR 28.28 44.8 –16.4 –25.7 Euro Small Cap A EU EQ IRL 07/28 EUR 1002.22 18.2 –25.3 –30.5 Bond Fd SEK -C- NO BD LUX 07/29 SEK 42.25 1.7 11.4 6.5 Eq. US Sm Cap Val A OT OT LUX 07/28 USD 14.39 11.2 –32.5 –27.6 Earnings at the Mercedes-Benz flecting a 20% drop in sales of the Euro Small Cap B EU EQ IRL 07/28 EUR 1070.82 18.6 –24.8 –30.0 n PAREX ASSET MANAGEMENT IPAS Bond Fd SEK -D- NO BD LUX 07/29 SEK 12.27 1.8 11.5 5.9 Eq. US Value Opp A OT OT LUX 07/28 USD 14.36 10.8 –34.3 –28.0 Eurozone Agg Eq A EU EQ IRL 07/28 EUR 553.67 11.4 –23.0 –25.2 cars, vans and financial services company’s vehicles. Basteja Blvd. 14, Riga, LV-1050, Latvia Corp. Bond Fd EUR -C- EU BD LUX 07/29 EUR 1.20 9.8 3.3 0.6 An employee works on the production Eurozone Agg Eq B EU EQ IRL 07/28 EUR 793.66 11.8 –22.5 –24.8 Money Market EURO A OT OT LUX 07/28 EUR 27.35 0.8 2.7 3.5 Corp. Bond Fd EUR -D- EU BD LUX 07/29 EUR 0.92 9.9 3.4 0.5 units improved compared to the Like other volume car makers, www.parexgroup.com Tel: +371 67010810 Glbl Bd (EuroHdg) A GL BD IRL 07/28 EUR 1297.86 8.4 3.0 0.7 Money Market USD A OT OT LUX 07/28 USD 15.82 0.5 1.5 2.7 line in the Mercedes-Benz site in Parex Caspian Sea Eq EU EQ LVA 07/28 EUR 3.00 42.9 –60.8 –45.3 Corp. Bond Fd SEK -C- NO BD LUX 07/29 SEK 11.80 9.8 –0.9 –0.8 gloomy first quarter, but “a compari- Peugeot-Citroën has been Glbl Bd (EuroHdg) B GL BD IRL 07/28 EUR 1374.08 8.8 3.7 1.3 Corp. Bond Fd SEK -D- NO BD LUX 07/29 SEK 8.92 9.8 –0.9 –0.8 Sindelfingen, Germany. Parex Eastern Europ Bd EU BD LVA 07/28 USD 12.74 46.1 –10.2 –2.8 Glbl Bd A EU BD IRL 07/28 EUR 1045.13 6.6 10.5 0.5 son with the very good second quar- Danish Mortgage Bond Fd EURNO -ID- BD LUX 07/29 EUR 102.22 –1.6 5.5 NS squeezed by the plunge in global Parex Russian Eq EE EQ LVA 07/28 USD 15.36 77.4 –41.0 –22.9 Glbl Bd B EU BD IRL 07/28 EUR 1110.23 7.0 11.2 1.1 Associated Press Danish Mortgage Bond Fd EURNO -RC- BD LUX 07/29 EUR 106.63 3.0 10.1 NS ter of last year shows that there is Glbl Real Estate A OT EQ IRL 07/28 USD 741.12 11.2 –33.3 –24.1 automobile sales, as well as a rapid Danish Mortgage Bond Fd SEKOT -ID- OT LUX 12/17 SEK 121.91 NS NS NS Glbl Real Estate B OT EQ IRL 07/28 USD 762.10 11.6 –32.9 –23.6 still a lot of work to be done,” Daim- downturn for trucks and luxury restructuring of Daimler’s Japanese the second half of the year, due Danish Mortgage Bond Fd SEKNO -RC- BD LUX 07/29 SEK 1121.17 3.0 10.1 NS shift in customer preference to Glbl Real Estate EH-A OT EQ IRL 07/28 EUR 676.22 7.8 –32.6 –25.4 Flexible Bond Fd -C- NO BD LUX 07/29 SEK 21.34 2.3 6.4 4.6 ler Chief Executive Dieter Zetsche cars, Daimler targets cost savings of truck unit plus Œ13 million in ex- mainly to the E-Class and the new- smaller, less-polluting cars. With Glbl Real Estate SH-B OT EQ IRL 07/28 GBP 63.30 6.8 –33.4 –25.1 Flexible Bond Fd -D- NO BD LUX 07/29 SEK 11.67 2.3 6.4 4.6 Œ4 billion as part of a wide-ranging penses for slashing capacity at the generation of the flagship S-Class Glbl Strategic Yield A EU BD IRL 07/28 EUR 1394.03 23.3 –4.0 –2.2 n YUKI INTERNATIONAL LIMITED said in a statement. In the second European auto sales likely to con- Glbl Strategic Yield B EU BD IRL 07/28 EUR 1488.05 23.7 –3.5 –1.6 n SEB Sicav 1 Tel +44-207-269-0203 www.yukifunds.com quarter of last year, the German auto move to streamline its organization. North American truck operations. model. But the division’s full-year tract by 7% in the second half, Peu- Japan Equity A JP EQ IRL 07/28 JPY 11949.00 15.6 –26.0 –25.8 n PICTET & CIE, ROUTE DESACACIAS 60, CH-1211 GENEVA 73 Choice Emerging Mkts Fd GL EQ LUX 07/29 USD 2.20 43.1 –17.8 –11.4 maker posted a Œ1.35 billion profit. Daimler’s second-quarter reve- Daimler’s core Mercedes-Benz di- car sales are expected to come in be- Japan Equity B JP EQ IRL 07/28 JPY 12703.00 16.0 –25.6 –25.3 Eastern Europe Fd OT OT LUX 07/29 EUR 2.03 22.0 –32.0 –25.3 geot-Citroën said it still expects a Tel: + 41 (58) 323 3000 Web: www.pictetfunds.com n YMR-N Series PacBasn (Ex-Jap) Eq A AS EQ IRL 07/28 USD 1954.32 52.0 –8.5 –10.5 The Stuttgart-based auto maker nue fell 25% from the same period vision, which comprises the Mer- low last year’s level. n YMR-N Growth Fund OT OT IRL 07/29 JPY 9109.00 5.9 –29.6 –33.6 full-year operating loss of be- PF (LUX)-Asian Eq-Ica AS EQ LUX 07/29 USD 151.53 36.6 –16.2 –15.9 PacBasn (Ex-Jap) Eq B AS EQ IRL 07/28 USD 2080.33 52.5 –8.0 –10.0 SEB Sicav 2 said its closely watched earnings be- last year to Œ19.6 billion. Daimler’s cedes-Benz, Smart and Maybach Daimler said inventories at Mer- PF (LUX)-Asian Eq-Pca AS EQ LUX 07/29 USD 144.72 36.0 –16.9 –16.6 Pan European Eq A EU EQ IRL 07/28 EUR 815.63 13.5 –21.9 –23.9 Choice Asia SmCap exJpn AS EQ LUX 07/29 SEK 27.69 64.9 12.9 –15.0 YMR-N Japan Fund OT OT IRL 07/29 JPY 10112.00 7.1 –29.3 –31.0 tween Œ1 billion and Œ2 billion. De- PF (LUX)-Biotech-Pca OT EQ LUX 07/28 USD 291.23 2.2 –21.4 –2.3 Pan European Eq B EU EQ IRL 07/28 EUR 867.25 13.9 –21.5 –23.5 Eastern Europe SmCap Fd OT OT LUX 07/29 EUR 1.89 48.4 –32.0 –30.8 YMR-N Small Cap Fund OT OT IRL 07/29 JPY 7084.00 10.4 –21.9 –32.9 fore interest and taxes, or Ebit, swung sales were down 31% on the year in nameplates, posted a Œ340 million cedes-Benz were cut by about 44,000 spite the disappointing results PF (LUX)-CHF Liq-Pca CH MM LUX 07/28 CHF 124.19 0.2 0.6 1.3 US Equity A US EQ IRL 07/28 USD 761.82 13.8 –21.2 –17.1 Europe Chance/Risk Fd EU EQ LUX 07/29 EUR 893.10 17.1 –27.1 –29.6 to a Œ1 billion loss as restructuring the second quarter at 391,500 cars operating loss compared to a Œ1.21 vehicles in the second quarter, in line and gloomy outlook, the auto PF (LUX)-CHF Liq-Pdi CH MM LUX 07/28 CHF 93.74 0.2 0.5 1.3 US Equity B US EQ IRL 07/28 USD 813.58 14.3 –20.7 –16.6 Listed Private Equity -C- OT OT LUX 07/29 EUR 103.06 25.1 NS NS n Yuki 77 Series PF (LUX)-Digital Comm-Pca OT EQ LUX 07/28 USD 101.25 24.5 –4.6 –8.4 charges on top of deteriorating vehi- and commercial vehicles. Charges billion profit in the year-earlier pe- US Small Cap A US EQ IRL 07/28 USD 1131.37 12.5 –23.1 –18.8 Listed Private Equity -IC- OT OT LUX 07/29 EUR 58.27 41.1 NS NS Yuki 77 General JP EQ IRL 07/29 JPY 6279.00 6.4 –31.9 –32.2 with the company’s target. Invento- maker surprised analysts by an- PF (LUX)-East Eu-Pca EU EQ LUX 07/28 EUR 232.86 74.4 –34.6 –29.6 Listed Private Equity -ID- OT OT LUX 07/29 EUR 56.59 37.2 NS NS US Small Cap B US EQ IRL 07/28 USD 1208.97 12.9 –22.6 –18.3 Yuki 77 Growth JP EQ IRL 07/29 JPY 5891.00 –0.4 –35.9 –36.8 cle sales added fuel to the fire. But related to the sale of its remaining riod, but solid sales of the new gener- ries at all other units were also re- PF (LUX)-Emg Mkts-Pca GL EQ LUX 07/29 USD 437.58 43.8 –24.5 –17.7 Nordic Small Cap -IC- OT OT LUX 07/29 EUR 105.23 NS NS NS nouncing it had achieved positive PF (LUX)-Eu Indx-Pca EU EQ LUX 07/28 EUR 86.92 13.7 –18.7 –20.8 n SEB ASSET MANAGEMENT S.A. Ebit still came in ahead of analysts’ ex- 19.9% stake in Chrysler LLC to Cer- ation Mercedes-Benz E-Class and duced, it said. Daimler said the free cash flow of Œ467 million in n SEB Sicav 3 n Yuki Chugoku Series PF (LUX)-EUR Bds-Pca EU BD LUX 07/28 EUR 376.26 0.8 5.8 1.9 www.seb.se pectations of a Œ1.53 billion loss. The berus Capital Management LP also the GLK compact sports-utility vehi- group’s industrial net liquidity rose the first half thanks to a 31% drop PF (LUX)-EUR Bds-Pdi EU BD LUX 07/28 EUR 286.33 0.8 5.7 1.9 Asset Sele Defensive Acc -A-OT OT LUX 07/29 SEK 77.38 –3.4 –23.3 –15.7 Yuki Chugoku Jpn Gen JP EQ IRL 07/29 JPY 6674.00 7.0 –29.8 –32.9 Asset Sele Defensive Acc EUR -C- net loss was also less severe than the shaved Œ387 million from earnings. cle cushioned the fall. PF (LUX)-EUR Cp Bd-Pca EU BD LUX 07/28 EUR 140.94 12.9 9.3 3.5 n SEB Fund 1 OT OT LUX 07/29 EUR 98.86 NS NS NS Yuki Chugoku JpnLowP JP EQ IRL 07/29 JPY 8328.00 1.7 –24.7 –27.6 to Œ4.6 billion at the end of the second in its inventory of unsold cars. Asset Sele Defensive Acc SEKOT -C- OT LUX 07/29 SEK 98.95 NS NS NS PF (LUX)-EUR Cp Bd-Pdi EU BD LUX 07/28 EUR 99.08 12.8 9.3 3.5 Asset Sele C EUR OT OT LUX 07/29 EUR 13.49 –4.5 15.4 11.1 Œ1.34 billion analysts had forecast. A Œ204 million charge was Mercedes-Benz is expected to quarter from Œ3.7 billion at the end of Asset Sele Defensive Acc USDOT -C- OT LUX 07/29 USD 100.13 NS NS NS At the same time, net debt im- PF (LUX)-EUR HiYld-Pca EU BD LUX 07/28 EUR 124.58 38.1 –4.9 –6.8 Asset Sele C H-CHF OT OT LUX 07/29 CHF 93.80 NS NS NS n Yuki Daishi Series Asset Sele Defensive Inc -D-OT OT LUX 07/29 SEK 70.69 –3.4 –23.3 –17.0 Reacting to the steep market booked in the second quarter for the post a positive operating result in the first three months of the year. PF (LUX)-EUR HiYld-Pdi EU BD LUX 07/28 EUR 72.22 38.1 –4.9 –6.8 Asset Sele C H-GBP OT OT LUX 07/29 GBP 94.48 NS NS NS Yuki Daishi General JP EQ IRL 07/29 JPY 7039.00 4.0 –33.1 –33.5 proved to just over Œ2 billion on Asset Sele Opp C H NOK OT OT LUX 07/29 NOK 97.65 NS NS NS PF (LUX)-EUR Liq-Pca EU MM LUX 07/28 EUR 135.75 0.8 2.2 2.9 Asset Sele C H-JPY OT OT LUX 07/29 JPY 9412.29 NS NS NS Asset Sele Opp C H SEK OT OT LUX 07/29 SEK 96.76 NS NS NS June 30 from Œ2.9 billion at the PF (LUX)-EUR Liq-Pdi EU MM LUX 07/28 EUR 97.83 0.8 2.2 2.9 Asset Sele C H-NOK OT OT LUX 07/29 NOK 108.16 –3.9 NS NS n Yuki Hokuyo Japan Series PF (LUX)-EUR Sov Liq-Pca OT OT LUX 07/28 EUR 102.37 0.5 1.9 NS Asset Sele Opp IC EUR OT OT LUX 07/29 EUR 97.44 NS NS NS end of last year, and Peugeot-Cit- Asset Sele C H-SEK OT OT LUX 07/29 SEK 135.45 –5.0 16.3 11.4 Asset Sele Opp ID H GBP OT OT LUX 07/29 GBP 97.32 NS NS NS Yuki Hokuyo Jpn Gen JP EQ IRL 07/29 JPY 4651.00 2.2 –36.4 –33.7 PF (LUX)-EUR Sov Liq-Pdi OT OT LUX 07/28 EUR 101.00 0.5 1.9 NS Asset Sele C H-USD OT OT LUX 07/29 USD 94.51 NS NS NS Asset Sele Opp ID H SEK OT OT LUX 07/29 SEK 97.46 NS NS NS Yuki Hokuyo Jpn Inc JP EQ IRL 07/29 JPY 5363.00 1.6 –28.9 –28.1 roen said it has restructured its PF (LUX)-Europ Eq-Pca EU EQ LUX 07/28 EUR 350.60 14.6 –21.5 –25.9 Asset Sele D H-SEK OT OT LUX 07/29 SEK 127.12 –5.0 NS NS Asset Sele Original C EUR OT OT LUX 07/29 EUR 99.27 NS NS NS PF (LUX)-EuSust Eq-Pca EU EQ LUX 07/28 EUR 114.21 12.9 –18.5 –23.7 Yuki Hokuyo Jpn Sm Cap JP EQ IRL 07/29 JPY 5204.00 10.6 –20.6 NS debt-maturity profile so there Choice Global Value -C- GL EQ LUX 07/29 SEK 67.44 12.1 –23.1 –27.3 Asset Sele Original D GBP OT OT LUX 07/29 GBP 99.35 NS NS NS PF (LUX)-Gl Em Dbt-Pca GL BD LUX 07/28 USD 223.15 17.8 11.8 8.7 were no major debt repayments Choice Global Value -D- OT OT LUX 07/29 SEK 64.62 12.0 –23.1 NS Asset Sele Original ID GBP OT OT LUX 07/29 GBP 99.24 NS NS NS Honda, Nissan upbeat despite dreary results n Yuki Mizuho Series PF (LUX)-Gl Em Dbt-Pdi GL BD LUX 07/28 USD 151.81 17.8 11.7 8.7 Choice Global Value -I- OT OT LUX 07/29 EUR 5.70 17.2 –30.1 –31.3 through 2014. PF (LUX)-Gr China-Pca AS EQ LUX 07/29 USD 316.21 48.7 –3.1 –7.6 Choice Japan Fd -C- OT OT LUX 07/29 JPY 48.79 8.5 –27.5 –27.5 Yuki Mizuho Gen Jpn III OT OT IRL 07/29 JPY 4427.00 4.2 –38.6 –36.4 By Yoshio Takahashi tent uncertain prospects for a recov- PF (LUX)-Indian Eq-Pca EA EQ LUX 07/29 USD 299.86 56.5 –4.2 –10.8 The improvement in Peugeot- Choice Japan Fd -D- OT OT LUX 07/29 JPY 43.87 8.5 –27.5 –27.5 Yuki Mizuho Jpn Dyn Gro OT OT IRL 07/29 JPY 4734.00 5.4 –38.8 –37.1 ery in demand, said Mitsushige PF (LUX)-Jap Index-Pca JP EQ LUX 07/29 JPY 8934.30 9.7 –27.6 –25.8 Choice Jpn Chance/Risk JP EQ LUX 07/29 JPY 51.18 14.3 –32.0 –29.5 Yuki Mizuho Jpn Exc 100 OT OT IRL 07/29 JPY 6750.00 10.6 –32.3 –32.5 Gear shift | Net profit/loss, in billions of yen Citroen’s financial situation was PF (LUX)-Jp Eq Sel-Ica JP EQ LUX 07/29 JPY 7804.43 6.9 –32.2 –30.5 Choice NthAmChance/Risk US EQ LUX 07/29 USD 3.44 22.7 –27.3 –17.4 Yuki Mizuho Jpn Gen OT OT IRL 07/29 JPY 8571.00 6.9 –29.4 –32.8 TOKYO—Honda Motor Co. and Akino, a general manager at Ichiy- PF (LUX)-Jp Eq Sel-Pca JP EQ LUX 07/29 JPY 7590.17 6.5 –32.7 –31.0 “a massive positive surprise,” said Ethical Europe Fd OT OT LUX 07/29 EUR 1.70 13.7 –24.9 –27.3 Yuki Mizuho Jpn Gro OT OT IRL 07/29 JPY 6556.00 4.9 –28.4 –33.8 Nissan Motor Co. both posted dis- Honda Motor Nissan oshi Investment Management. PF (LUX)-JpEq130/30-Pca JP EQ LUX 07/29 JPY 4399.12 12.1 –26.3 –26.0 Europe 1 Fd OT OT LUX 07/29 EUR 2.44 17.0 –23.8 –27.2 Yuki Mizuho Jpn Inc OT OT IRL 07/29 JPY 7806.00 –1.8 –32.5 –30.3 Max Warburton, automotive ana- PF (LUX)-MidEast&NorAfr-PcaOT OT LUX 07/23 USD 45.27 9.1 –53.3 NS Europe 3 Fd EU EQ LUX 07/29 EUR 3.49 14.2 –25.7 –28.0 n THE NATIONAL INVESTOR mal earnings to start their fiscal Honda’s first-quarter revenue to- Yuki Mizuho Jpn Lg Cap OT OT IRL 07/29 JPY 5175.00 3.8 –31.3 –31.5 ¥200 ¥100 lyst at Sanford Bernstein. PF (LUX)-Pacif Idx-Pca AS EQ LUX 07/29 USD 220.36 39.2 –16.8 –12.1 Global Chance/Risk Fd GL EQ LUX 07/29 EUR 0.52 11.5 –18.8 –22.0 PO Box 47435, Abu Dhabi, UAE Web:www.tni.ae years, but the big Japanese auto mak- taled two trillion yen, 30% lower PF (LUX)-Piclife-Pca CH BA LUX 07/28 CHF 744.63 8.0 –3.7 –7.2 Yuki Mizuho Jpn LowP OT OT IRL 07/29 JPY 12029.00 6.1 –20.8 –25.3 Global Fd -C- OT OT LUX 07/29 USD 1.85 11.4 –27.4 –20.7 MENA Real Estate Fund OT OT BMU 07/23 USD 949.80 1.0 NS NS ers beat market expectations and of- than a year earlier. The positive free cash flow in PF (LUX)-PremBrnds-Pca OT EQ LUX 07/28 EUR 53.33 20.8 –7.9 –19.5 Global Fd -D- OT OT LUX 07/29 USD 1.16 11.3 NS NS MENA Special Sits Fund OT OT BMU 06/30 USD 1028.16 5.9 NS NS Yuki Mizuho Jpn PGth OT OT IRL 07/29 JPY 8189.00 7.2 –32.5 –33.6 the first half will be more than off- PF (LUX)-Rus Eq-Pca OT OT LUX 07/28 USD 43.96 92.5 –44.3 NS Nordic Fd OT OT LUX 07/29 EUR 4.83 22.8 –10.8 –16.0 UAE Blue Chip Fund OT OT ARE 07/23 AED 5.32 16.0 –55.4 –22.5 Yuki Mizuho Jpn SmCp OT OT IRL 07/29 JPY 7134.00 16.3 –20.9 –32.3 fered signs that the crippling losses 100 0 Nissan left its forecast un- PF (LUX)-Security-Pca GL EQ LUX 07/28 USD 86.98 21.7 –6.3 –12.5 Yuki Mizuho Jpn Val Sel OT OT IRL 07/29 JPY 5790.00 11.5 –26.4 –28.1 set in the second half, as there will PF (LUX)-Sm Cap Eu-Pca EU EQ LUX 07/28 EUR 383.55 17.5 –23.2 –25.6 n SEB Fund 2 of the past year may be behind them. changed, expecting a net loss of 170 Yuki Mizuho Jpn YoungCo OT OT IRL 07/29 JPY 2871.00 20.3 –28.2 –39.3 be no further reduction of invento- PF (LUX)-US Eq-Ica US EQ LUX 07/28 USD 90.14 10.4 –21.8 –14.7 Choice Asia ex. Japan -C- OT OT LUX 07/29 USD 6.50 43.5 –8.5 –11.8 Honda, Japan’s second-largest billion yen for the fiscal year ending PF (LUX)-USA Index-Pca US EQ LUX 07/28 USD 79.24 9.3 –19.3 –16.8 Choice Asia ex. Japan -D- OT OT LUX 07/29 USD 1.15 43.5 NS NS 0 –100 ries, which have returned to a “nor- n Yuki Nishi Nippon City Japan Series auto maker by vehicle sales after Toy- in March. Its first-quarter sales PF (LUX)-USD Gov Bds-Pca US BD LUX 07/28 USD 502.17 –5.3 4.9 5.7 Currency Alpha EUR -IC- OT OT LUX 07/29 EUR 10.54 –3.4 –1.4 1.5 mal” level equivalent to 66 days of PF (LUX)-USD Gov Bds-Pdi US BD LUX 07/28 USD 368.48 –5.3 4.9 5.7 Currency Alpha EUR -RC- OT OT LUX 07/29 EUR 10.46 –3.7 –1.8 1.0 Yuki Nishi-Nippon Cty GeneralJP EQ IRL 07/29 JPY 4953.00 10.0 –36.0 –34.5 ota Motor Corp., said its net profit sagged 36% to 1.515 trillion yen, from PF (LUX)-USD Liq-Pca US MM LUX 07/28 USD 130.90 0.6 1.3 2.3 Currency Alpha SEK -ID- OT OT LUX 07/29 SEK 98.03 –7.2 –5.4 NS n WWW.SGAM.COM for the first quarter ended June 30 –100 –200 2.347 trillion yen. production, Chief Executive Phil- PF (LUX)-USD Liq-Pdi US MM LUX 07/28 USD 85.47 0.5 1.3 2.3 Currency Alpha SEK -RC- OT OT LUX 07/29 SEK 109.99 –3.7 –1.8 1.0 SGAM FUND n Yuki Shizuoka Japan Series tumbled 96% to 7.56 billion yen, or Nissan’s China joint venture ippe Varin told reporters. Provi- PF (LUX)-USD Sov Liq-Pca OT OT LUX 07/28 USD 101.57 0.3 1.4 NS Generation Fd 80 OT OT LUX 07/29 SEK 7.20 12.7 –8.3 NS Bonds ConvEurope A OT OT LUX 07/27 EUR 28.93 2.0 –5.9 1.6 Yuki Shizuoka General Japan JP EQ IRL 07/29 JPY 5407.00 6.0 –31.1 –34.5 sion reversals and a steady level of about $80 million, from the same pe- –200 –300 plans to build a new plant to expand riod a year ago. But it lifted its full- its production capacity for passen- research-and-development spend- Advertisement [ www.wsj.com/funddata ] Advertisement 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q ing will also contribute to the sec- ALTERNATIVE INVESTMENT FUNDS year earnings target, helped by strin- FY’09 FY’10 FY’09 FY’10 ger cars by 240,000 vehicles a year, gent cost cuts and stronger-than-ex- said Dongfeng Motor Group Co., Nis- ond-half cash burn, said Chief Fi- 12-month and 2-year returns may be calculated over 11- and 23-month NAV — %RETURN — NAV — %RETURN — pected vehicle sales at home and in Note: Fiscal years end March 31 of year shown Sources: the companies san’s partner there. The plant, to be nancial Officer Frédéric Saint periods pending receipt and publication of the last month end price. FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR Geours. NAV — %RETURN — INDICES China. built at an existing production base FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR Special Opp USD OT OT CYM 07/17 USD 84.06 5.6 NS NS n INTEGRATED ALTERNATIVE INVESTMENTS, TEL: +44 (0)20 75149200 Mr. Varin was put in charge of Email: [email protected] - Website: www.integratedai.com Nissan, the country’s third-big- 1.1% to 2,770 yen, while Nissan’s debt. in the southern Chinese city of n HSBC Portfolio Selection Fund n ALEXANDRA INVESTMENT MANAGEMENT Altipro OT OT FRA 06/30 EUR 190.43 NS NS NS NAV % RETURN the company just two months ago, GH Fund AP OT OT JEY 05/22 EUR 123.47 3.5 –13.4 –3.8 FUND NAME GF DATE CR NAV 1-WK 1-MO 1-Q 1-YR 2-YR gest car maker,reported a first-quar- shares rose less than 1% to 631 yen. Honda, the maker of the Insight Guangzhou, is scheduled to start pro- Alexandra Convertible Bond FundOT I, OT Ltd. VGB (Class 06/30 A) USD 1300.11 34.2 NS NS Integrated Dir Trading USD OT OT CYM 06/30 USD 94.58 3.5 –4.4 5.3 GH Fund CHF Hdg OT OT JEY 07/17 CHF 104.70 4.9 NS NS succeeding Christian Streiff, who Integrated Emg Markets EUROT OT CYM 06/30 EUR 76.09 6.9 –21.7 –12.8 n ARIX ABSOLUTE RETURN INVESTABLE INDEX ter net loss of 16.53 billion yen, com- The industry’s eyes will now fo- hybrid and Civic compact cars, duction in 2012, Dongfeng said. With GH Fund EUR Hdg (Non-V) OT OT JEY 05/22 EUR 111.63 2.9 –15.9 –5.9 Integrated European EUR OT OT CYM 06/30 EUR 151.17 1.4 –4.1 –1.0 was forced out after disagree- GH Fund GBP Hdg OT OT JEY 07/17 GBP 124.28 5.5 NS NS Feri Institutional Advisors, www.feri.de pared with a net profit of 52.80 bil- cus on Toyota, the world’s biggest raised its net profit outlook to 55 bil- the expansion, Nissan’s manufactur- Integrated Event Driven USDOT OT CYM 06/30 USD 82.54 0.3 –22.8 –11.0 ARIX Composite Gross USD OT 06/30 USD 1328.84 3.2 3.2 2.6 –18.0 –7.1 GH Fund Inst EUR OT OT JEY 05/29 EUR 91.86 10.0 –10.4 NS Integrated Lg/Sh Sel A USD OT OT CYM 06/30 USD 85.01 –1.6 –14.8 –6.9 lion yen a year earlier. At the same car maker by sales volume, which is lion yen in the 12 months through ing capacity in China is expected to ments over strategy with the con- GH Fund Inst USD OT OT JEY 07/17 USD 104.96 6.4 NS NS Integrated MultSt B USD OT OT VGB 06/30 USD 119.05 3.3 –16.3 –6.8 trolling Peugeot family. GH FUND S EUR OT OT CYM 07/17 EUR 120.04 6.2 NS NS NAV — %RETURN — time, its China joint venture unveiled expected to report a net loss when it March from its previous forecast of rise to about 700,000 vehicles a year, Integrated Relative Value USDOT OT CYM 06/30 EUR 94.14 3.1 –5.3 –3.0 FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR GH FUND S GBP OT OT JEY 07/17 GBP 124.35 5.7 NS NS releases quarterly earnings Tuesday. 40 billion yen. It cited cuts in admin- it said. Europe’s second-largest auto- GH Fund S USD OT OT CYM 07/17 USD 140.67 6.6 NS NS plans to spend five billion yuan, or Key Hedge EUR -IC- OT OT LUX 06/30 EUR 97.46 7.5 –2.9 NS n CAPITAL MANAGEMENT ADVISORS GH Fund USD OT OT GGY 07/17 USD 257.89 5.8 NS NS motive group said it expected its Key Hedge EUR-RC- OT OT LUX 06/30 EUR 96.90 7.2 –3.4 NS about $730 million, to establish a The two companies’ performance istrative and sales costs, as well as re- Honda reports earnings under Phone Number: +1 441 295 59 29 Hedge Investments OT OT JEY 07/17 USD 131.48 6.1 NS NS echoes Ford Motor Co.’s results an- duced research and development U.S. accounting standards, and Nis- European market share to in- CMA Dynamic OT OT BHS 06/30 USD 1354.00 0.5 4.1 5.9 Leverage GH USD OT OT GGY 07/17 USD 107.91 10.6 NS NS n SEB KEY Market Independent II new auto plant there. CMA MultHdge Arbtrge OT OT CYM 05/29 USD 1752.69 0.7 –8.8 –4.4 MultiAdv Arb CHF Hdg OT OT JEY 07/17 CHF 89.41 6.4 NS NS Key Market Independent II EUROT -RC- OT LUX 06/30 EUR 91.98 8.5 –6.1 NS China, which looks set to surpass nounced last week. The U.S. car spending. san’s earnings are based on Japa- crease to above 14% in the second CMA MultHdge Balncd OT OT CYM 05/29 USD 1246.22 0.4 4.8 5.8 MultiAdv Arb EUR Hdg OT OT JEY 07/17 EUR 96.80 7.1 NS NS Key Market Independent II SEKOT -I- OT LUX 06/30 SEK 89.48 9.0 –6.2 NS CMA MultHdge Growth OT OT CYM 06/30 USD 1691.59 2.7 7.0 6.4 MultiAdv Arb GBP Hdg OT OT JEY 07/17 GBP 104.15 7.5 NS NS the U.S. to become the world’s big- maker said it returned to profitabil- “The upward revision reflects nese standards. half of this year from 13.6% in the n INVENTUM ASSET MANAGEMENT S.A. CMA MultiHdge Lvrgd OT OT CYM 06/30 USD 952.17 –0.3 1.6 6.7 MultiAdv Arb S EUR OT OT CYM 07/17 EUR 102.95 7.6 NS NS n SEB KEY Recovery [email protected] gest auto market as early as this ity in the second quarter, though this [Honda’s] confidence of its own ef- —Patricia Jiayi Ho first six months, boosted by new MultiAdv Arb S GBP OT OT CYM 07/17 GBP 107.60 7.9 NS NS Key Recovery -IC- OT OT LUX 06/30 EUR 83.89 5.4 –15.7 NS n D'AURIOL FUNDS WWW.DAURIOL.BIZ Tel. +7 495 792 5595 www.inventumcapital.com MultiAdv Arb S USD OT OT CYM 07/17 USD 117.56 8.5 NS NS Key Recovery -RC- OT OT LUX 06/30 EUR 83.40 5.1 –16.2 NS year, is an increasing source of profit came mainly from gains it recorded forts” to cut costs among other steps and Norihiko Shirouzu in Beijing product launches. 2 FUNDS OF FUNDS OF HEDGE FUNDS MultiAdv Arb USD OT OT GGY 06/30 USD 181.37 7.5 –17.9 –10.2 Inv Absolute Return Fund OT OT BMU 06/30 USD 123.48 22.0 NS NS D'Auriol Alt Non-Lev A EU OT CYM 05/29 EUR 98.91 0.5 –22.5 –11.4 growth for auto makers in the devel- as part of efforts to restructure its to get back on its feet amid persis- contributed to this article. Mr. Varin said his strategy for D'Auriol Opp F3 EUR EU MM CYM 05/29 EUR 989.59 –0.7 –25.0 –15.0 n HSBC Uni-folio oped world. the group will focus on reducing n Alpha AdvantEdge OT OT JEY 06/30 USD 111.58 4.2 –14.9 –7.1 HERMITAGE CAPITAL MANAGEMENT LTD. Asian AdbantEdge EUR OT OT JEY 07/17 EUR 95.59 7.8 NS NS The results from the two Japa- its dependence on Europe for Tel: +7501 258 3160 www.hermitagefund.com Asian AdvantEdge OT OT JEY 07/17 USD 175.11 8.1 NS NS nese auto makers were hurt by de- sales, increasing operational effi- The Hermitage Fund GL EQ JEY 07/17 USD 686.32 52.2 –58.3 –34.8 Emerg AdvantEdge OT OT JEY 07/17 USD 157.52 12.2 NS NS Emerg AdvantEdge EUR OT OT JEY 07/17 EUR 87.77 11.7 NS NS pressed demand in major markets, ciencies, and getting a competi- n HORSEMAN CAPITAL MANAGEMENT LTD. n SUPERFUND ASSET MANAGEMENT GMBH T: +44(0)20 7838 7580, F: +44(0) 20 7838 7590, www.horsemancapital.com Europ AdvantEdge EUR OT OT JEY 07/17 EUR 122.79 6.5 NS NS n MERIDEN GROUP Europ AdvantEdge USD OT OT JEY 07/17 USD 130.08 6.6 NS NS For information about open funds, please contact us on Tel: +43 1 24700 especially the U.S. Both were also tive edge in vehicle technology Horseman EmMkt Opp EUR GL EQ GBR 06/30 EUR 183.32 –14.6 –4.6 11.2 Tel: + 376 741 175 Fax: + 376 741 183 Email: [email protected] Porsche faces $7 billion Volkswagen hit Japan AdvantEdge JPY OT OT JEY 06/30 JPY 7913.02 –2.1 –10.8 –8.6 www.superfund.com *Closed for New Investments Horseman EmMkt Opp USD GL EQ USA 06/30 USD 184.82 –15.8 –6.8 10.5 Antanta Combined Fund EE EQ AND 07/17 USD 239.65 24.7 –67.0 –45.8 hurt by the strength of the yen, and services. Japan AdvantEdge USD OT OT JEY 06/30 USD 92.51 –1.7 –9.6 –6.5 Superfund Cayman* OT OT CYM 07/21 USD 46.14 –44.6 –43.8 –12.1 Horseman EurSelLtd EUR EU EQ GBR 06/30 EUR 176.67 –15.5 –18.2 2.7 Antanta MidCap Fund EE EQ AND 07/17 USD 400.51 38.2 –75.2 –48.0 By Steve Goldstein Lvgd Alpha AdvantEdge OT OT JEY 06/30 USD 91.87 7.0 –33.1 –19.2 Superfund GCT USD* OT OT LUX 07/21 USD 2313.00 –36.7 –37.9 –12.3 which ate into the income they tions in Volkswagen has netted it a another loss relating to purchase- He didn’t exclude new partner- Horseman EurSelLtd USD EU EQ GBR 06/30 USD 183.41 –15.7 –18.7 2.5 Meriden Opps Fund GL OT AND 07/22 EUR 74.42 –14.5 –28.2 NS Real AdvantEdge EUR OT OT NA 07/17 EUR 103.21 4.4 NS NS Superfund Gold A (SPC) OT OT CYM 07/21 USD 906.14 –22.1 –33.5 5.6 Horseman Glbl Ltd EUR GL EQ CYM 06/30 USD 412.16 –16.3 –3.1 8.8 Meriden Protective Div OT OT AND 11/24 EUR 78.88 –2.8 NS NS earned overseas and which is ex- nearly 51% stake in VW, along with op- price allocation, in which all assets ships or alliances with other auto- Real AdvantEdge USD OT OT NA 07/17 USD 103.24 4.6 NS NS Superfund Gold B (SPC) OT OT CYM 07/21 USD 903.94 –32.9 –43.8 –0.8 Horseman Glbl Ltd USD GL EQ CYM 06/30 USD 412.16 –16.3 –3.1 8.8 Trading Adv JPY OT OT NA 07/17 JPY 9336.76 NS NS NS Superfund Q-AG* OT OT AUT 07/21 EUR 6648.00 –24.1 –24.5 –4.3 pected to continue to pressure re- Porsche Automobil Holding SE tions for roughly 20% more of the auto and liabilities will be compared motive manufacturers to fill gaps n HSBC ALTERNATIVE INVESTMENTS LIMITED Trading AdvantEdge OT OT GGY 07/17 USD 141.68 –6.6 NS NS n WINTON CAPITAL MANAGEMENT LTD sults this fiscal year. on Wednesday said it will take a hit maker based in Wolfsburg, Germany. against the price paid for them. in Peugeot-Citroen’s product T +44 20 7860 3074 F + 44 20 7860 3174 www.hail.hsbc.com Trading AdvantEdge EUR OT OT GGY 07/17 EUR 128.90 –6.3 NS NS n OTHER FUNDS Trading AdvantEdge GBP OT OT GGY 07/17 GBP 135.81 –6.7 NS NS Tel: +44 (0)20 7610 5350 Fax: +44 (0)20 7610 5301 But the options also have led Taken together, Porsche will take a HSBC Absolute Companies For information about these funds, please contact us on Tel: +44 (0) 207 842 9694/9633 Still, both companies performed of as much as Œ5 billion ($7 billion) lineup, and said he wanted to ex- US AdvantEdge OT OT JEY 06/30 USD 105.30 2.9 –19.3 –7.5 Winton Evolution EUR GL OT VGB 06/30 EUR 1202.78 –7.1 –12.8 1.9 Global Absolute OT OT GGY 07/17 GBP 0.99 5.3 NS NS Medinvest Plc Dublin OT OT IRL 05/29 USD 1278.44 NS –13.8 –5.3 better than analysts expected. Gov- before taxes as it sells options on the company into debt of at least hit of as much as Œ5 billion. pand and deepen existing indus- Global Absolute EUR OT OT NA 07/10 EUR 1.46 5.5 NS NS Winton Evolution GBP GL OT VGB 06/30 GBP 1183.94 –7.2 –12.5 2.9 Global Absolute USD OT OT GGY 07/17 USD 1.86 5.6 NS NS n SEB ALTERNATIVE INVESTMENT Winton Evolution JPY OT OT VGB 02/27 JPY 115254.95 0.7 –3.8 7.1 ernment incentives, cost cutting and Volkswagen AG shares. Œ9 billion. Porsche stressed the write-offs trial cooperation arrangements SEB KEY Europe Equity Long Short Winton Evolution USD GL OT CYM 06/30 USD 1171.62 –7.3 –13.2 1.9 n tighter inventory control along with Porsche said it is in advanced Porsche said the preparation for are purely accounting moves, and with companies such as BMW AG, HSBC ALTERNATIVE STRATEGY FUND Key Europe Long/Short EUR -IC-OT OT LUX 06/30 EUR 86.74 2.2 –13.3 NS Winton Futures EUR GL OT VGB 06/30 EUR 192.43 –6.5 –4.0 11.4 Winton Futures GBP GL OT VGB 06/30 GBP 207.39 –6.6 –3.4 12.8 Special Opp EUR OT OT CYM 07/17 EUR 80.18 5.1 NS NS Key Europe Long/Short EUR -RC-OT OT LUX 06/30 EUR 86.22 1.9 –13.8 NS some sales recovery in the emerging talks with “one or several investors,” the sale of VW options will result in a selling the options will improve its li- Ford Motor Co., Fiat SpA, Toyota Special Opp Inst EUR OT OT CYM 07/17 EUR 75.55 5.2 NS NS Winton Futures JPY Lead SeriesGL 2 OT VGB 06/30 JPY 13617.90 –7.7 –7.1 8.1 Special Opp Inst USD OT OT CYM 07/17 USD 85.56 6.0 NS NS n SEB KEY Hedge Winton Futures USD GL OT VGB 06/30 USD 682.01 –7.1 –4.8 11.4 markets are beginning to improve including Qatar Holding, about sell- “substantial book capital loss” as it quidity because it no longer will Motor Co. and Mitsubishi Motors the outlook for Japan’s auto makers ing its options in Volkswagen. will be forced to take a devaluation. need to set aside more than Œ1 bil- Co. to share development and in- For information about listing your funds, please contact: Peter Jennings, tel: +44-20-7842-9674; email: [email protected] or Carson Wong tel: +852 2831-6481; email: [email protected] In Tokyo, Honda’s shares rose Porsche’s strategy of buying up op- In addition, Porsche will record lion as cash collateral. dustrial costs. 8 THURSDAY, JULY 30, 2009 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. THURSDAY, JULY 30, 2009 25 CORPORATE NEWS GLOBAL BUSINESS BRIEFS THE INTERNATIONAL INVESTOR

AkzoNobel NV British Airways PLC ConocoPhillips Sweet spot British Airways PLC Wednesday ConocoPhillips produced more Cadbury’s net profit, in millions Company’s net drops 13%; ICE starts clearinghouse ICI integration proceeds said it will no longer offer meals to crude oil in the second quarter than CIT draws fire over rescue £1,200 economy travelers on short-haul in the same period a year earlier, but Coatings and chemical company routes. A company spokeswoman lost money turning it into gasoline, vestors were surprised to learn the have been tendered, according to Full year AkzoNobel NV Wednesday re- said the U.K. airline will stop offer- driving overall profit down 76%. Some investors say firm waspayingat least $100million two people familiar with the situa- for derivatives in Europe 1,000 First half frained from giving a full-year out- ing meals on flights of under 2µ Conoco earned $1.3 billion in the sec- in upfront fees and had pledged sub- tion. To entice investors to accept, their deal was better; stantially all its “unencumbered as- CIT last week said bondholders that By Jacob Bunge ities’ push to mandate clearing- 800 look as it reported a 13% fall in sec- hours and after 10 a.m. to those trav- ond quarter, down from $5.4 billion ond-quarter net profit, hurt by eling in economy class. The move is a year earlier amid sharply lower sets” as collateral for a $3 billion tender their notes by this Friday will houses for the complex financial in- prices for oil and natural gas. Reve- next test is Friday loan from investors including Al- be paid more. The final acceptance IntercontinentalExchange Inc. struments. 600 lower volumes in all three of its busi- aimed at saving the struggling car- ness units. It nevertheless kept its rier £22 million a year. Meals will nue fell 50% to $35.4 billion. The lianz SE’s Pacific Investment Man- deadline is Aug. 14. started clearing credit-derivatives In Europe, dealers targeted a target of achieving a 14% earnings still be provided to those in pre- Houston-based company produced By Serena Ng agement Co., Oaktree Capital and According to Mr. Lauria’s letter, trades in Europe this week as July 31 deadline to begin routing 400 margin before interest, taxes, depre- mium business class and a snack and 7% more oil and natural gas than in And Kate Haywood Centerbridge Partners. CIT said it the rival proposal could have made dealer banks respond to regulators’ credit derivatives trades through ciation and amortization by the end non-alcoholic drink will still be of- the year-earlier quarter as new had received $2 billion of $3 billion in funds immedi- call to reduce risk in the $26.5 tril- clearinghouses as exchanges like 200 of 2011. It plans to make savings of fered at no extra charge to all travel- projects in the U.K., Russia and else- As the clock ticks down to CIT that amount and expected ately available to CIT, plus lion market. ICE, Eurex and CME worked to se- at least Œ540 million ($770 million) ers. BA’s move mirrors low-cost car- where came online. Conoco’s refin- Group Inc.’s bond-tender deadline, the remaining $1 billion by an additional $3 billion “if ICE, which officially launched cure regulatory approval for their 0 some investors are complaining that the end of July. '09'08'07'06'052004 by then through synergies from its riers easyJet PLC and Ryanair Hold- ing business, which turns crude oil requested by the com- its European credit-default-swap platforms. acquisition of U.K. paint maker ICI, ings PLC, neither of which serves in- into gasoline, diesel and other prod- their offer of alternative financing CIT said it “evaluated a pany.” The funds would clearing service Wednesday, is Eurex officials said that its Eu- Source: the company as well as restructuring. Chief Execu- flight meals for free, offering food ucts, posted a loss of $52 million in was “largely ignored” by the com- wide range of funding op- have helped CIT buy back among a handful of exchanges com- rex Credit Clear facility will begin

Associated Press Associated tive Hans Wijers said the ICI integra- for sale instead. BA Chairman Mar- the second quarter, compared with pany, even though it could have pro- tions proposed by a number its bonds due in August, it peting to handle credit-derivative clearing trades on Thursday, with a tion is ahead of schedule, with syner- tin Broughton said earlier this a $664 million profit a year earlier. vided the lender with as much as $6 of financial institutions and said. transactions in Europe, nearly four number of dealer banks signed on gies reaching Œ340 million. Second- month the firm couldn’t compete as Refiners have been hit hard as de- billion in funds. market participants” before The interest rate on the years after the industry’s first at- as members. In a July 24 letter to CIT’s board agreeing to the $3 billion rival group’s proposed loan Cuts and price increases quarter net profit fell 13% to Œ155 a low-cost carrier and instead would mand has fallen. tempt to enter the market. The Frankfurt-based exchange, and Chief Executive Jeffrey Peek, a loan from its major bond- also had a minimum 13%, million from Œ179 million a year ear- offer “better value” for money. The financial crisis is the driv- co-owned by Deutsche Börse lawyer representing a group of CIT holders. The company said but its upfront fee would lier, while revenue dropped 10% to Deutsche Lufthansa AG ing factor now. Authorities on both Group and SWX Swiss Exchange, investors expressed frustration its board determined that have been 3% versus 5% on Œ3.67 billion. EasyJet PLC Jeffrey Peek sides of the Atlantic see clearing- made one of the exchange indus- heal Cadbury’s margins Deutsche Lufthansa AG said over the company’s decision last the loan and a restructuring the package CIT accepted. houses, which serve as central coun- try’s first attempts to get into easyJet week to accept a $3 billion rescue it will undertake were “the The spurned group had pro- Bayer AG British budget airline Wednesday it swung to a net loss in terparties between buyers and sell- credit derivatives almost four years the company is “firmly on track” to package from six large bondholders best course of action to provide addi- posed an “exit fee” of 3% versus 2% PLC posted a 12% rise in revenue for the first half, but reiterated its goal ers, as a way to reduce risk in over- ago. But that push failed following U.K. profits rise on hit the target. when other, potentially cheaper, op- tional liquidity and further on the agreed-upon loan, which also German pharmaceutical and its fiscal third quarter and said it ex- of generating an operating profit in the-counter instruments. withdrawal of support by banks Cadbury’s net profit rose to £313 Bayer tions were on the table. strengthen CIT’s capital position.” imposes a 6.5% fee on CIT if it repays chemical company AG on pects a pretax profit of between £25 2009 despite “considerable risks” CME Group Inc., Eurex and that helped design the product. smaller chocolates million ($514.6 million) in the first linked to declining demand for pas- “We never received a meaningful The $3 billion rescue package early. Wednesday said its second-quarter million ($41.1 million) and £50 mil- NYSE Euronext also are targeting half from £113 million a year earlier, lion for its fiscal year. Revenue in- senger air travel. The German flag response to our proposal,” wrote also hinged largely on CIT’s ability Even if the tender succeeds and Eurex has offered participants a net profit fell 7.3%, though the com- the European credit-derivatives and impulse buys driven by gains on the sale of an Aus- pany reported strong sales at its creased to £721 million for the three carrier posted a loss of Œ216 million Thomas Lauria, a White & Case LLP to get enough debt holders to ten- CIT is able to recapitalize its busi- 90% equity stake in the clearing- market with their own clearing ven- tralian soda business to Asahi Brew- HealthCare unit. Net fell to Œ532 mil- months ended June 30 from £641 ($306 million), compared with a attorney representing CIT investors, der bonds maturing next month for ness through a series of debt-ex- house as a means of building sup- tures. By Aaron O. Patrick eries of Japan. Chocolate sales were lion ($754 million) from Œ574 mil- million a year earlier, boosted by the year-earlier profit of Œ381 million. including some distressed-debt 82.5 cents on the dollar. If CIT can’t change offers, the fact remains that port, but it remains unclear how strong, rising 10% in the half—about lion a year earlier, while revenue de- timing of Easter, which fell in the fis- Lufthansa’s closely watched operat- funds, that hold roughly $2 billion in get holders with 90% of the $1 bil- its business model doesn’t work, But ICE’s platform carries the many clearing services for over-the- LONDON—Cadbury PLC in- double the long-term growth rate. clined 5.9% to Œ8.01 billion. A 30% cal third quarter this year and sec- ing profit dropped to Œ8 million from debt. He added that “repeated at- lion bond issue to agree, the com- CreditSights analysts Adam Steer support of 10 major dealer banks counter instruments the market creased profit margins in the first To boost sales in Britain during drop in sales at MaterialScience was ond quarter last year. Average reve- Œ677 million a year earlier. Sales tempts to engage” with CIT’s advis- pany is likely to have to file for and David Hendler said in a report that have made the Atlanta-based will support. half, a step toward shedding its posi- the recession, Cadbury assigned its offset by an 8.3% rise in sales from nue per seat rose 11% to £51.42 from were down 15% to Œ10.2 billion from ers in the three days before the com- bankruptcy-court protection. The this week. exchange operator the de facto ICE has established a 50-50 tion as one of the least-profitable best salespeople to convenience Bayer’s HealthCare subgroup, £46.36. EasyJet said it will increase Œ12.06 billion. Lufthansa repeated pany reached a deal with bondhold- group of six bondholders that “CIT is still saddled with the un- leader in the U.S. profit-sharing agreement with the major producers of confectionary. stores, figuring they could increase which accounts for about half of to- its feet to 187 aircraft by Sept. 30, its pledge to step up efforts to safe- ers were largely ignored, leading the agreed to lend CIT $3 billion owns derlying issue that it lacks a viable ICE has handled $1.6 trillion in bank backers of its credit deriva- The chocolate, candy and gum sales by targeting impulse buyers, tal revenue. MaterialScience, hard- 2010, from 181 currently. It plans to guard earnings across the company. rival group to assume CIT had gotten less than half of the August floating- operating model. Consequently, we CDS contracts since its U.S. service tives clearing solution, who signed maker on Wednesday said operat- Mr. Stitzer said. hit by collapsing demand for its plas- operate 196 aircraft by the end of fis- The carrier said it hoped to achieve a “superior proposal.” rate notes. believe a bankruptcy filing is still a made its debut in March, while a ri- on after ICE acquired the bank- ing margins rose to 11.5% from 9.7% Cadbury also reduced the size of tics, foams and chemicals, seems to cal 2011 and 207 by the end of fiscal Œ1 billion in savings by the end of When CIT released terms of its So far this week, few of the bonds likely possibility,” Messrs. Steer and val clearinghouse from CME has owned Clearing Corp. earlier this a year ago. After coming under pres- some 9-ounce chocolate bars by 0.7 have reached the bottom of the cy- 2012. EasyJet’s results come just 2011 at its core passenger operation. loan agreement on July 21, some in- held by investors outside this group Hendler said. stalled as the Chicago-based ex- year. sure from shareholders over the of an ounce, allowing it to pass on cle, but a lasting improvement isn’t days after fellow budget carrier Ry- change operator works to secure Jeffrey Sprecher, ICE’s chief ex- company’s weak performance two higher costs and keep the price of yet in sight, Bayer said. Existing re- anair Holdings PLC scaled back its Toshiba Corp. bank support for the venture. ecutive, has said that he sees dealer years ago, Chief Executive Todd the bars around £1, according to Mr. structuring programs will be expe- full-year profit forecasts. Dealer banks have moved proac- support for the exchange’s U.S. Stitzer promised tough action to get Stitzer. Cadbury’s U.K. chocolate dited and further measures may be Toshiba Corp. said its group net BG Group profit tively to clear credit-derivatives credit derivatives clearinghouse margins raised to about 15% by 2011. sales rose 12% in the half, he said. introduced, particularly in its poly- IAC/InterActiveCorp loss worsened in the fiscal first quar- Gas Natural net jumps 19%; trades, staying ahead of U.S. author- translating across the Atlantic. In 2007, Cadbury had lower But in the U.S., Cadbury stum- carbonates unit, it said. ter as restructuring costs and red profit margins than five of its main bled as its Dentyne gum lost market IAC/InterActiveCorp reversed ink at its chip operations continued falls 31%, hurt competitors, including Hershey Co., share. The company hasn’t Tata Steel Ltd. a loss from a year earlier, when to weigh on the company. The com- assetsalesplannedto cut debt Wm. Wrigley Jr. Co., and Nestlé SA, launched a big new gum product in write-downs weighed on results, as pany left its annual net loss forecast U.K. rules affect overseas officers according to figures compiled by the U.S. since 2007 because it has Tata Steel Ltd.’s fiscal first-quar- the Internet-services group’s earn- of 50 billion yen ($528.9 million) un- By Bernd Radowitz ing the Fenosa acquisition, said An- by lower prices Sanford C. Bernstein & Co. Cad- been working on a new version of its ter profit fell 47%, which the com- ings rose from the previous quar- changed for the year ending March tonio Cruz, analyst at Banco Es- By James Herron Continued from page 19 called transitional phase, giving in- bury’s margins still trail most of its popular Trident gum, Mr. Stitzer pany said was due to lower product ter. IAC, a collection of Internet 2010. The Japanese electronics con- MADRID—Spanish utility Gas pañol de Crédito. The results were The FSA rules were first pro- stitutions six months to comply. rivals, according to public accounts. said. The new product, Trident Lay- prices and a change in accounting companies, was revamped last fall glomerate reported a 57.80 billion Natural SDG SA said second-quar- nevertheless among the best in the LONDON—U.K. oil company BG posed in December following trou- “Most non-U.K.-based individu- To boost margins, Mr. Stitzer has ers, is made of three gum strips practices. Unconsolidated profit for but has struggled during the weak yen net loss in the three months ter net profit jumped 19%, boosted sector, he added. Group PLC posted a 31% decline in bles faced by clients of Lehman als caught by these new rules will cut a layer of management, closed stuck together and will go on sale be- the standalone company fell to 7.9 advertising environment. The com- ended June 30, compared with the by the consolidation of Union Gas Natural’s net debt surged to second-quarter net profit, and said Brothers’ European operations, not have the first clue what their several factories in Europe and ginning in September. “It looks like billion rupees ($164 million) in the pany posted second-quarter earn- 11.61 billion yen loss the company re- Fenosa SA and the sale of its stake in Œ22.06 billion at the end of the sec- it will probably fall short of its 2009 when the parent firm in New York re- new, and pretty onerous, U.K. re- jacked up prices. After Wednesday’s a gum sandwich,” Mr. Stitzer said. quarter ended June 30 from 14.88 ings of $40.8 million, or 28 cents a ported in the same period a year ear- Enagas SA. ond quarter from Œ2.97 billion a oil and gas production targets. fused to transfer funds back to the sponsibilities really entail—partic- results, analysts said Cadbury is Overall, the volume of Cadbury billion rupees a year earlier. Reve- share, compared with a year-ear- lier. The company’s revenue during Net profit rose to Œ269 million year earlier. The company said it Net profit fell to £513 million U.K. and filed for bankruptcy, effec- ularly, the need for a comprehen- making good progress but could still confectionery sold fell 2% in the half nue at Tata Steel, the world’s eighth- lier loss of $421.6 million, or $3.02 the quarter fell to 1.340 trillion yen ($381.2 million) from Œ227 million a aims to lower net debt to about Œ18 ($843.4 million) from £747 million a tively isolating its subsidiary. sive understanding of the U.K. regu- miss the margin target. “It is too while sales by value rose 4%, after largest steelmaker by capacity, fell a share. The year-earlier results in- from 1.618 trillion yen, and it posted year earlier as revenue grew 8.1% to billion by year-end by selling more year earlier as revenue dropped 28% The head of compliance at one latory system and regime,” said early to be categorical about that,” stripping out the effect of currency 10% to 55.54 billion rupees from cluded a $132.6 million impairment a 37.59 billion yen operating loss. Œ3.34 billion from Œ3.09 billion. A assets and thanks to new govern- to £2.31 billion. Asian bank said he thought that the David Berman, a partner at law said Julian Hardwick, a food analyst fluctuations and divestments. 61.65 billion rupees. The company charge. Revenue in the latest quar- Mired in huge losses at its chip oper- Œ101 million capital gain from the ment regulation to end companies’ Weaker oil and gas prices were rules were unlikely to work in prac- firm Macfarlanes and a former in London at Royal Bank of Scotland. —Michael Carolan said profit would have been 2.77 bil- ter declined 4% to $340 million. ations, Toshiba is in the middle of a sale of Gas Natural’s 5% stake in Ena- debts from the so-called tariff defi- partly offset by a 6.9% increase in tice but that they fit in with the FSA’s managing director at Dresdner Mr. Stitzer said Wednesday that contributed to this article. lion rupees higher if it had followed Earnings before amortization in major restructuring that includes gas in June lifted the company’s bot- cit. The tariff deficit is the differ- production and a relatively strong drive over the past few years to in- Kleinwort. “I cannot recall a set of an earlier accounting practice allow- the media and advertising seg- cutting temporary jobs and improv- tom line. At the same time, the consol- ence between the price Spanish con- performance at BG’s liquefied-natu- crease accountability. “This isn’t go- proposals which beg so many ques- ing it to state its foreign exchange ment, which includes the Ask.com ing chip production efficiency. idation 95.2% of Spanish utility sumers pay for electricity and the ral-gas business. BG is one of the ing to solve any of the issues, but it tions and throw up so many legiti- gain in the profit and loss account. search engine, dropped 56%. Union Fenosa by the end of May cost of producing it. world’s largest suppliers of flexible may help them pin someone down mate concerns.” Chip makers see steadier market Its total steel production in the quar- Nippon Steel Corp. helped offset weak energy demand “The [economic] crisis no doubt LNG cargoes that can be diverted to when the issues do occur,” he said. A spokeswoman for the FSA said, ter rose to 1.5 million metric tons Reckitt Benckiser PLC and falling electricity prices in Spain. affects us, but so far we have been wherever prices are highest. Market participants had three “Individuals may have concerns By Archibald Preuschat bottom to a months-long slump. able to navigate reasonably well months, from December to the end about this and might not like it, but from 1.2 million tons. Nippon Steel Corp., Japan’s big- However, Gas Natural’s net BG said its second-quarter produc- Germany’s Infineon Wednes- through it,” Gas Natural Chief Execu- of March, to send the FSA feedback if they are exerting significant influ- Reckitt Benckiser PLC contin- gest steel maker by output, reported profit came in below estimates be- tion rose to 643,000 barrels of oil Infin- day posted a 13% increase in third- tive Rafael Villaseca said during a on the rules, which take effect Aug. ence over the U.K. operation, the DÜSSELDORF, Germany— Randstad Holding NV ued to shrug off the effects of the glo- its second consecutive quarterly net cause of greater-than-expected am- equivalent a day from 601,000 barrels eon Technologies STMicro- quarter sales compared with the conference call. 6. After that, there will be a so- FSA should know about it.” AG and bal downturn Wednesday, posting a loss amid weaker domestic demand ortization and financial costs follow- of oil equivalent per day a year earlier. electronics NV joined a growing cho- second quarter and narrowed its The decline of Europe’s labor 31% rise in second-quarter net profit for high-end steel products and the rus of microchip makers spotting a net loss significantly to Œ23 mil- markets contributed to a 90% fall in and raising both its sales and profit increased cost of raw materials. The lion from Œ379 million in the sec- Dutch staffing group Randstad Hold- targets for the full year. Net profit world’s second-largest steelmaker Advertisement [ INTERNATIONAL INVESTMENT FUNDS www.wsj.com/funddata ] Advertisement ond quarter a year earlier. The im- ing NV’s second-quarter net profit, jumped to £310 million ($509.6 mil- after ArcelorMittal said it incurred provement was helped by stronger although cost cuts helped prevent it lion) from £237 million a year ear- a net loss of 42.25 billion yen Continued from previous page NAV — %RETURN — NAV — %RETURN — NAV — %RETURN — FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR demand from mobile-handset pro- from falling into a loss. Revenue lier as sales were up 20% at £1.87 bil- ($446.8 million) in the fiscal first NAV — %RETURN — ducers like LG Electronics Inc. and dropped 33% to Œ2.99 billion ($4.24 lion from £1.56 billion, said the quarter ended June 30, compared FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR Real Estate Sec. B OT EQ LUX 07/28 USD 10.97 11.4 –30.1 –22.7 Andfs. Franca EU EQ AND 07/28 EUR 8.37 1.2 –22.9 –23.3 DJE-Alpha Glbl P EU BA LUX 07/29 EUR 161.06 4.7 –11.2 –9.7 Real Estate Sec. I OT EQ LUX 07/28 USD 12.80 12.5 –28.8 –21.3 Andfs. Japo JP EQ AND 07/28 JPY 492.83 12.4 –25.3 –25.6 DJE-Div& Substanz P GL EQ LUX 07/29 EUR 190.21 8.8 –9.6 –10.8 cost cutting. billion) compared to a pro forma fig- maker of products such as Lysol, with a year-earlier net profit of Gl High Yield I US BD LUX 07/28 USD 3.79 35.2 –3.9 –1.8 Short Mat Dollar A US BD LUX 07/28 USD 7.03 6.1 –5.1 –8.9 Executive Travel Program Gl Value A GL EQ LUX 07/28 USD 9.64 13.5 –31.4 –27.2 Andfs. Plus Dollars US BA AND 07/28 USD 8.74 3.6 –13.0 –9.2 DJE-Gold&Resourc P OT EQ LUX 07/29 EUR 142.13 8.7 –17.0 –9.4 STMicroelectron- Short Mat Dollar A2 US BD LUX 07/28 USD 9.32 6.4 –5.2 –9.0 DJE-Renten Glbl P EU BD LUX 07/29 EUR 126.24 5.5 5.0 1.7 Swiss-based ure of Œ4.44 billion, which was ad- Clearasil and Senokot. Stripping cur- 82.76 billion yen. Hurt by poor sales Gl Value B GL EQ LUX 07/28 USD 8.89 12.8 –32.1 –28.0 Andfs. RF Dolars US BD AND 07/28 USD 10.86 6.3 –4.1 –1.6 Short Mat Dollar B US BD LUX 07/28 USD 7.03 5.9 –5.5 –9.3 LuxPro-Dragon I AS EQ LUX 07/29 EUR 142.41 53.4 13.3 –4.0 ics NV, meanwhile, late Tuesday Gl Value I GL EQ LUX 07/28 USD 10.21 14.0 –30.9 –26.7 Short Mat Dollar B2 US BD LUX 07/28 USD 9.30 6.2 –5.5 –9.3 justed for the acquisition of Vedior, rency fluctuations, sales were up of high-end products to auto makers Andfs. RF Euros EU BD AND 07/28 EUR 10.29 15.0 –1.6 –4.3 LuxPro-Dragon P AS EQ LUX 07/29 EUR 138.86 53.0 12.7 –5.0 India Growth A - OT OT LUX 07/28 USD 105.12 NS NS NS Short Mat Dollar I US BD LUX 07/28 USD 7.03 6.4 –4.5 –8.3 Guests and clients of 320 posted its sixth consecutive quar- a Dutch staffing agency it bought in 8%, thanks to price increases, the and other manufacturers, group India Growth AX OT OT LUX 07/28 USD 91.78 58.9 0.8 –3.6 Andorfons EU BD AND 07/28 EUR 13.65 14.4 –3.3 –7.2 LuxTopic-Aktien Europa EU EQ LUX 07/29 EUR 15.18 5.9 –5.8 –8.4 terly net loss as sales and margins 2008. The company closed 340 of- easing of input costs and cost sav- sales sank 38% to 745.08 billion yen India Growth B - OT OT NA 07/28 USD 110.59 NS NS NS Andorfons Alternative PremiumOT OT AND 05/31 EUR 94.40 2.2 –17.8 –9.4 LuxTopic-Pacific AS EQ LUX 07/29 EUR 14.09 55.7 –18.4 –18.9 leading hotels receive India Growth BX OT OT LUX 07/28 USD 78.79 58.0 –0.2 –4.5 Andorfons Mix 30 EU BA AND 07/28 EUR 8.75 8.1 –15.9 –13.7 continued to decline, but Chief Exec- fices in the quarter and operating ex- ings. Sales were driven by Reckitt from 1.2 billion yen. Although steel India Growth I EA EQ LUX 07/28 USD 94.91 59.2 1.1 –3.3 The Wall Street Journal Int'l Health Care A OT EQ LUX 07/28 USD 123.19 4.9 –16.2 –11.6 Andorfons Mix 60 EU BA AND 07/28 EUR 8.30 2.1 –25.2 –20.5 utive Carlo Bozotti Wednesday said penses excluding restructuring and Benckiser’s heroin-dependency demand in other Asian countries Int'l Health Care B OT EQ LUX 07/28 USD 104.36 4.3 –17.0 –12.5 Europe daily, courtesy of n he expects the chip market as a integration costs fell 24% to Œ531.1 treatment Suboxone. Stripping out has started to improve, weak sales Int'l Health Care I OT EQ LUX 07/28 USD 134.14 5.4 –15.5 –10.9 CHARTERED ASSET MANAGEMENT PTE LTD - TEL NO: 65-6835-8866 Int'l Technology A OT EQ LUX 07/28 USD 93.16 27.4 –18.6 –15.2 Fax No: 65-6835 8865, Website: www.cam.com.sg, Email: [email protected] whole to decline less than STMicro million. Randstad said net profit fell the benefit of Suboxane, Reckitt’s of high-grade products mean a re- Int'l Technology B OT EQ LUX 07/28 USD 81.07 26.6 –19.4 –16.0 n BANC INTERNACIONAL D'ANDORRA. BANCA MORA. Int'l Technology I OT EQ LUX 07/28 USD 104.10 27.9 –17.9 –14.5 Avgd. Meritxell 96, Andorra la Vella. Andorra. Ph. +376.884884 www.bibm.ad CAM-GTF Limited AS EQ MUS 07/24 USD 203483.41 50.8 –9.6 –14.6 had previously forecast. to Œ11.6 million from Œ96.2 million a sales-growth rate was just 5%. The covery in Nippon Steel’s earnings is Japan Blend A JP EQ LUX 07/28 JPY 5921.00 10.3 –31.4 –27.9 Andfs. Anglaterra UK EQ AND 07/28 GBP 6.93 4.1 –11.3 –12.4 n HERMES FINANCIAL MANAGEMENT (EGYPT) LIMITED, [email protected] STMicro reported a loss of $318 year ago. The figure includes Œ7.6 company is targeting net revenue likely to remain difficult for now. Japan Growth A JP EQ LUX 07/28 JPY 5806.00 4.4 –31.6 –28.3 Andfs. Borsa Global GL EQ AND 07/28 EUR 5.68 –2.1 –27.3 –22.9 n DJE INVESTMENT S.A. Tel: 9714 363 4041 *Middle East & Developing Africa Fund Japan Growth I JP EQ LUX 07/28 JPY 5953.00 4.8 –31.1 –27.7 Andfs. Emergents GL EQ AND 07/28 USD 14.44 44.5 –18.9 –13.4 internet: www.dje.lu email: [email protected] phone:+00 352 269 2522 0 fax:+00 352 269EFG-Hermes 25252 Egypt GL EQ BMU 06/30 USD 38.55 11.5 –37.7 –10.1 million in the second quarter, includ- million in restructuring costs, Œ5 growth of 5% to 6%, up from 4% pre- Japan Strat Value A JP EQ LUX 07/28 JPY 5933.00 15.0 –32.5 –28.3 Andfs. Espanya EU EQ AND 07/28 EUR 12.31 13.7 –9.4 –14.9 EFG-Hermes MEDA* GL EQ BMU 05/29 USD 22.16 5.8 –44.0 –11.0 Japan Strat Value I JP EQ LUX 07/28 JPY 6070.00 15.6 –31.9 –27.8 Andfs. Estats Units US EQ AND 07/28 USD 13.12 7.6 –23.4 –17.6 DJE Real Estate P OT OT LUX 07/29 EUR 9.44 –6.3 –8.0 –3.7 ing a restructuring charge of $86 mil- million in integration costs and viously, and net profit growth of 10% Real Estate Sec. A OT EQ LUX 07/28 USD 11.95 12.0 –29.4 –21.9 Andfs. Europa EU EQ AND 07/28 EUR 6.85 5.6 –21.0 –20.9 DJE-Absolut P GL EQ LUX 07/29 EUR 184.11 5.0 –14.1 –13.6 Please turn to next page lion, compared with a $47 million —Compiled from staff www.thinkmediaoutdoor.be Œ39.7 million in amortization on ac- to 11%, up from a previous forecast loss in the same period a year before. quisition-related intangibles. of 8% to 10%. and wire service reports. For information about listing your funds, please contact: Peter Jennings, tel: +44-20-7842-9674; email: [email protected] or Carson Wong tel: +852 2831-6481; email: [email protected] 24 THURSDAY, JULY 30, 2009 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. THURSDAY, JULY 30, 2009 9 THE INTERNATIONAL INVESTOR ECONOMY & POLITICS FUND SCORECARD Chinese stocks tumble 5% Euro Moderate Balanced These funds have a mandate to balance equity and bond investments for Euro-based inves- Investors fear growth tors. The equity component does not exceed 60%. Ranked on % total return (dividends rein- Protesters’ brutal deaths spark Iran fury in loans will weaken, vested) in U.S. dollars for one year ending July 29, 2009 Leading 10 Performers Regime releases 140 detainees in apparent bid to ease opposition pressure; reports of violent interrogations abound FUND FUND LEGAL % Return in $US ** hurting economy RATING NAME FUND MGM'T CO. CURR. BASE YTD 1-YR 2-YR 5-YR By Farnaz Fassihi and nearly 100 killed after the June NS DSC Constant Universal-Investment EURiGermany 0.46 25.38 NS NS By Peter Stein 12 presidential election. Among Profit Global UI T GmbH And Laura Santini Reports from Tehran families in the arrested are 250 prominent re- 5 LD Invest LD Invest DKKiDenmark 6.80 17.91 17.11 NS recent days of receiving the bodies formers, journalists, lawyers and HONG KONG—A selloff in Chi- Kontra of relatives arrested at opposition student activists. nese stocks Wednesday, in part on 5 AEGON AEGON Investment EURiNethrlnds 10.10 9.94 17.30 NS rallies who later died from violent The Iranian regime puts the fears that loan growth could be brak- Strategic AllocationManagement 65/35 Inc B.V. treatment in prison have fueled an- number of arrested around 500 ing, sent a jolt through other regional 3 Warburg Warburg Invest EURiGermany 17.11 9.27 –0.89 NS ger at the government. and the death toll at 20. “The regime’s first priority is markets from Mumbai to Sydney. Trend Allocation Plus Among the dead is Mohsen Rou- The Shanghai Composite Index halamini, the son of a prominent survival. First they repress vio- 5 Carmignac Carmignac Gestion EURiFrance 14.73 5.35 10.37 13.76 fell as much as 7.7% conservative and adviser to presi- lently and now they realize their le- Patrimoine A ASIAN-PACIFIC before ending dential candidate Mohsen Rezai. gitimacy is badly tarnished, so down 5% at 5 Novara Dexia Asset EURiLuxembrg 19.25 5.14 5.28 9.50 His family said he died of cardiac ar- they are trying to defuse the incred- STOCKS 3266.43, erasing Aquilone Eq ContrManagement Risk Italia Belgium S.A. rest and bleeding in his lungs, and ible anger by people,” said Payam most of the gains of Associated Press 4 Novara Dexia Asset EURiLuxembrg 19.05 4.27 5.08 7.31 that his face had been smashed. Akhavan, a former prosecutor at The Hague and cofounder of Iran the past five sessions. The full day’s There was anguish in Shanghai on Wednesday, when a stock selloff sent Chinese Aquilone Global EqManagement Contr Risk Belgium S.A. News of his death in prison last shares tumbling and weighed on markets throughout the region. Human Rights Documentation Cen- decline is the biggest percentage 5 RAM Wachstum DWS Investment EURiLuxembrg 17.29 4.23 4.62 11.90 week spurred fury across political drop since Nov. 18, when the index ter in New Haven, Conn. S.A. lines, prompting even some declined 6.3%. progovernment newspapers and Last week, families who had Hong Kong’s Hang Seng Index gone into stocks, real estate or com- guo Securities, though he thinks the 5 StarCap StarCapital S.A. EURiLuxembrg 24.91 2.15 7.83 NS lawmakers to charge the regime missing relatives were taken to a cold-storage facility for fruits and dropped 2.4% to 20135.50, Mum- modities. market will resume its climb if Huber Defensive A with excessive use of force and vio- vegetables in the south of Tehran bai’s Sensitive Index fell 1% to Late Wednesday, the People’s credit doesn’t tighten. 3 GT Optimum GT Finance EURiFrance 4.62 1.82 2.22 2.53 lence in crushing its opposition. that had been turned into a 15173.46, and Australia’s S&P/ASX Bank of China published remarks on Defying the market weakness NOTE: Changes in currency rates will affect performance and rankings. Source: Morningstar, Ltd Opposition leaders warned of a morgue. Pictures posted on Ira- 200 declined 0.6% to 4142.80. Japa- its Web site by Vice Governor Su were two big Chinese initial public KEY: ** 2YR and 5YR performance is annualized 1 Oliver’s Yard, 55-71 City Road backlash and urged the govern- NA-not available due to incomplete data; London EC1Y 1HQ United Kingdom nian Web sites showed bodies nese shares edged up 0.3%. Ning saying that the central bank offerings that accounted for a large NS-fund not in existence for entire period www.morningstar.co.uk; Email: [email protected] ment of President Mahmoud Ah- piled on top of one another as fami- will emphasize market-based sys- share of market activity in Shanghai Phone: +44 (0)203 107 0038; Fax: +44 (0)203 107 0001 Hopes of a world-wide economic madinejad to reverse its actions. lies tried to identify loved ones. tems, rather than administrative and Hong Kong. China State Con- recovery increasingly center on con- “People will not forgive these Among the bodies released re- controls, in guiding credit growth. struction Engineering, which acts. How could it be possible that tinued growth in the developing Associated Press cently to relatives in Tehran, Ramin world, and China in particular. Con- The statement didn’t mention raised $7.3 billion in the world’s big- someone goes into a prison, then Ghahremani, 30, died in the hospital At a Berlin rally, a woman places a rose by a portrait of Sohrab Arabi, who vanished in Iran in June. His body was released this month. cerns are growing, however, that Wednesday’s market performance. gest IPO this year, gained 56% in its NAB takes majority stake in his body comes out?” opposition because of internal bleeding in his China may start to tighten credit af- But it appeared to signal that the first day of trading in Shanghai. leader Mir Hossein Mousavi said chest. He was beaten and hanged up- ter Chinese banks lent a record 7.4 government isn’t planning to set In Hong Kong, Chinese building- Monday in a meeting with teachers. side down for long periods, accord- trillion yuan ($1.08 trillion) in the loan curbs, although it didn’t say so materials producer BBMG also rose Goldman Sachs JBWere unit Some of the families say they These accounts paint a disturbing ingly wary of an even deeper divide families wrote to lawmakers com- ing to his mother, who spoke with first half. Some market participants explicitly. 56% in its debut after raising are speaking out despite being picture of widespread abuse and in an already volatile political land- plaining about lack of transpar- him while he was in the hospital. By Lyndal McFarland pointed to a report on the Web site Commodity stocks fell around US$763 million. Both China State nation,” National Australia Bank warned against talking to the me- torture by interrogators in deten- scape. On Tuesday, it released 140 ency and reports of abuse. Amir Javadifar, 27, a graduate of Caijing magazine Tuesday after- Asia, with BHP Billiton losing 1.6% Construction and BBMG are direct Chief Executive Cameron Clyne said. dia and holding funerals and memo- tion facilities that are overflowing. detained protesters, and Supreme On Wednesday, the Associated student in industrial management, noon that quoted China’s two big- and Rio Tinto down 2.4% in Sydney. plays on infrastructure spending, a SYDNEY—National Australia Mr. Clyne, who took over the top rial services. On receiving the bod- The opposition has called for a Leader Ayatollah Ali Khamenei or- Press quoted Iranian state news had broken bones and bruises, ac- gest lenders as saying they would In Tokyo, Inpex dropped 1.7% and Ja- key beneficiary of Chinese govern- Bank Ltd. continued its acquisition job this year, signaled in March that ies, they say, they were told to sign nationwide protest on Thursday to dered the closure of a detention fa- agency IRNA as reporting “around cording to his father, Ali Javadi- sharply slow credit growth in the pan Petroleum Exploration shed ment stimulus plans. drive by announcing it will take a ma- he saw private wealth as a key area consent forms that named the commemorate the the deaths of cility in south Tehran known as 20” detainees involved in “planning fard, who saw his son in the hospi- second half. 1.9%. Kirby Daley, senior strategist at jority stake in Goldman Sachs JBW- of growth for the Melbourne bank. cause of death as meningitis, flu or Neda Agha Soltan and others killed Kahrizak where protesters were be- and carrying out sabotage” will go tal before he died. On Monday, Mr. A spokesman for one of the lend- Further weighing on energy- brokerage firm Newedge Group in ere’s private-wealth-management “The ability to offer private cli- bacterial infection. in violent protests on June 20. In ing held. Before this, it had been on trial starting on Saturday. The re- Javadifard was taken to a morgue ers, China Construction Bank, said share prices in Hong Kong was Chi- Hong Kong, said Wednesday’s de- business in Australia and New ent stock-broking services signifi- In addition, scores of protesters Shiite Islam, it is the custom to used to jail drug dealers. port said this would be the “first and received his son’s body. new loans in the second half would na’s announcement that it would cut cline is healthy for the market, given Zealand, extending its push into the cantly strengthens NAB’s competi- who have been detained and re- hold a memorial service on the The parliament last week phase” of trials, the AP said. “My son was healthy and well definitely be less than in the first prices for refinery products. China the concerns that bubbles are form- growing market. tive position, as it sets it apart from leased in the past few weeks are 40th day after a person’s death. named a special committee to in- According to independent hu- when they arrested him, and his half but couldn’t say by how much. Petroleum & Chemical, or Sinopec, ing in China. He also didn’t find it National Australia Bank said it its Australian-listed peers that do now coming forth with details of Iran’s regime appears to be re- vestigate the conditions of prison- man-rights organizations, over body was returned to me in a differ- Wang Zhenning, a spokesman for fell 5% and PetroChina declined very worrisome for the region un- will pay 99 million Australian dol- not have the same product offer- their arrest and prison conditions. sponding to the pressures, seem- ers and facilities after hundreds of 1,000 people have been arrested ent condition,” Mr. Javadifard said. the other lender, Industrial & Com- 3.9%. On the mainland, PetroChina less Shanghai continues falling into lars (US$82 million) for an 80.1% ing,” Daiwa analyst Johan mercial Bank of China, said the sank 6% and Sinopec shed 0.8%. next week. stake in Goldman Sachs JBWere’s Vanderlugt said. bank will “moderately adjust” its China’s broad-based market de- “If the easy-money policy contin- private-wealth arm, just weeks after The private-wealth business will lending in the second half, with cline Wednesday also came after ues much longer without oversight agreeing to pay A$825 million for be branded JBWere, with Goldman more focus on environmental enter- profit warnings from some of the in how the money is used, there will British insurer Aviva PLC’s Austra- Sachs JBWere, the Australian affili- India’s Singh walks a tightrope on statements on Pakistan prises and smaller and medium-size country’s blue-chip companies. be bubbles, and there will be pain,” lian wealth-management business. ate of Goldman Sachs Group Inc., re- businesses, among other things. China Cosco Holdings, the listed Mr. Daley said. The focus on Australian wealth taining the remaining 19.9%. By Ketaki Gokhale through his administration. A 34-page dossier detailing a phasized that India’s general posi- sulates in southern Afghanistan, a Despite the report, Chinese bank flagship of China’s largest shipping In Tokyo, the Nikkei Stock Aver- management shows the bank’s pref- Goldman Sachs holds a 45% His supporters say he is deter- high-level Pakistani investigation tion on terrorism was unchanged. charge India denies. The raising of stocks held up surprisingly well company, dropped 8.4% after saying age of 225 companies climbed 25.98 erence to move away from offshore stake in Goldman Sachs JBWere, NEW DELHI—Indian Prime Min- mined to leave good relations with into the planning and execution of “It’s not enough to say that Paki- Baluchistan as an issue between Wednesday. China Construction it will post a net loss for the first half points to 10113.24 in light trade. Nip- expansion, which has delivered which will retain investment-bank- ister Manmohan Singh defended Pakistan as part of his political leg- the Mumbai attacks was handed to stan is a victim of terrorism,” he the two countries could create fur- Bank fell 0.5% and ICBC declined because of declining global trade pon Steel fell 3.4% after it reported a mixed results in recent years. ing, merchant-banking, asset-man- statements he made weeks ago to acy. But Mr. Singh has been facing Mr. Singh just days before his meet- pointed out. “They must show the ther political static. Mr. Singh on 2.6% in Shanghai. and still-low freight rates for dry- second consecutive quarter of red Goldman Sachs JBWere’s private- agement and securities services in try to improve relations with Paki- flak from opponents who say his ing with Mr. Gilani in Sharm el- same political will and take the Wednesday defended the inclusion A lending slowdown could hurt bulk shipping. Jiangxi Copper tum- ink on slumping steel consumption wealth business has more than Australia. stan, saying Wednesday that a new statement was too concessionary Sheikh, Egypt, at a summit of non- same sustained action on terror- of Baluchistan in the agreement, the real economy if businesses strug- bled 9% after it said first-half net and high input costs, and said it ex- 22,000 active client relationships, This month, NAB raised A$2 bil- dossier from Islamabad convinced and a departure from popular con- aligned countries. It provided de- ism on their eastern border as saying India has “nothing to hide.” gle to get the credit they need to ex- profit will likely drop 57% to 64% pects a loss for its fiscal first half. assets under advice of more than lion through an institutional share him the nation is making a sincere ef- sensus. tails of the communication net- they are taking on their western “Baluchistan is going to be in fo- pand. It also would dry up a key from a year earlier. Nikon rose 6.8%, in part on a re- A$38 billion and funds under man- placement, some of which was ear- fort to crack down on cross-border Yashwant Sinha, a parliamentar- works the militant group Lash- border.” cus for a few years to come,” Mr. Ku- source of liquidity pushing stock China’s stock market is up 79% covery in demand for single-lens re- agement of around A$10 billion. marked for acquisitions. terrorism and that peace in South ian from the opposition Bharatiya Ja- kar-e-Taiba used to plan the at- Some observers speculated that mar said, and the passing reference and property prices higher. Ben Sim- this year even after Wednesday’s de- flex digital cameras as seen in Can- “JBWere’s pre-eminent reputa- JBWere will become a portfolio Asia had to be pursued. nata Party, said that the In- tacks, photographs of the Mr. Singh would cave to pressure to the situation in the joint agree- pfendorfer, an economist with cline. “The market does need to cor- on’s earlier reported earnings. tion for providing wealth-manage- business of NAB’s wealth division, al- At the same time—in a move to dian public, still riled by last alleged plotters in cus- from his party and retract his con- ment will only add fuel to the fire. Royal Bank of Scotland, believes rect after five consecutive sessions —Rose Yu in Shanghai ment services to high net-worth indi- though the deal still needs regula- smooth ruffled feathers within his year’s Mumbai attacks, tody in Pakistan, and an ac- ciliatory statements with Mr. Gi- “If you issue a statement on Bal- that as much as half of all the extra of gains, and it will likely continue to and Victoria Ruan viduals and National Australia tory approval. own Congress party and to counter wants Pakistan to bring the count of the progress of lani before parliament. But accord- uchistan without saying anything lending China’s banks have pumped fall in the coming days,” said Wu and Bai Lin in Beijing Bank’s strong footprint in business —Iain McDonald opposition taunts that he has taken terrorists responsible to jus- the investigation. A ing to Sanjay Kumar, a fellow at the on Kashmir, that will be a big prob- into the system so far this year have Dazhong, an analyst at Shenyin Wan- contributed to this article. and private banking is a great combi- contributed to this article. a soft line—Mr. Singh repeatedly tice. The agreement “obliter- charge sheet has been Centre for the Study of Developing lem in the coming days,” he said. said talks between the two coun- ates the distinction between filed against 18 suspects, Societies, a New Delhi think tank, —Vibhuti Agarwal tries on broader issues like trade being a perpetrator and vic- and a trial in Pakistan is in Mr. Singh has stuck with his origi- contributed to this article. Advertisement [ INTERNATIONAL INVESTMENT FUNDS www.wsj.com/funddata ] Advertisement and travel can’t continue unless Pa- tim,” said Mr. Sinha during a the offing, Mr. Singh said. nal line of opening up dialogue kistan pursues strong action vitriolic confrontation in “This is the first time with Pakistan. NAV — %RETURN — NAV — %RETURN — NAV — %RETURN — against terror. parliament. At another that Pakistan has ever for- “He didn’t backtrack from any- Personal Technology FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR A joint statement signed two point, Mr. Sinha accused Mr. mally briefed us on the re- thing in the joint statement,” Mr. Ku- Am Blend Portfolio I US EQ LUX 07/28 USD 10.70 11.5 –21.1 –19.7 Emg Mkts Growth B GL EQ LUX 07/28 USD 24.18 41.0 –25.9 –17.1 Gl Balanced I US BA LUX 07/28 USD 15.33 12.0 –17.0 –13.7 weeks ago by Mr. Singh and his Pa- Singh of “walking all the sults of an investigation mar said. “In fact, the prime minis- Am Growth A US EQ LUX 07/28 USD 26.78 16.9 –10.3 –10.2 Emg Mkts Growth I GL EQ LUX 07/28 USD 31.39 42.4 –24.5 –15.6 Gl Bond A US BD LUX 07/28 USD 8.94 6.8 4.9 3.5 Manmohan Looking askance Am Growth B US EQ LUX 07/28 USD 22.62 16.3 –11.2 –11.1 Eur Growth A EU EQ LUX 07/28 EUR 6.34 13.8 –21.1 –21.9 Gl Bond A2 US BD LUX 07/28 USD 15.22 7.1 4.7 3.5 kistan counterpart, Prime Minis- way to the Pakistani camp.” Singh into a terrorist attack in In- ter kept on repeating the verbal as- Am Growth I US EQ LUX 07/28 USD 29.58 17.5 –9.6 –9.5 Eur Growth B EU EQ LUX 07/28 EUR 5.72 13.0 –22.0 –22.7 Gl Bond B US BD LUX 07/28 USD 8.94 6.3 3.8 2.4 Mr. Singh countered dia,” he said Wednesday. surances of his Pakistani counter- Walter S. Mossberg further Data as shown is for information purposes only. No offer is being made by Gl Bond B2 US BD LUX 07/28 USD 13.39 6.5 3.7 2.4 ter Yousuf Raza Gilani, said India Morningstar, Ltd. or this publication. Funds shown aren’t registered with the U.S. Am Income A US BD LUX 07/28 USD 7.94 14.3 3.3 3.3 Eur Growth I EU EQ LUX 07/28 EUR 6.89 14.3 –20.5 –21.3 Am Income A2 US BD LUX 07/28 USD 17.49 14.9 3.4 3.3 Eur Income A EU BD LUX 07/28 EUR 6.12 25.2 1.9 –1.7 Gl Bond I US BD LUX 07/28 USD 8.94 7.1 5.5 4.1 and Pakistan agreed to decouple that “unbracketing” the discussion “It is also the first time that they part. He took the line that to emerge explains the Windows 7 Securities and Exchange Commission and aren’t available for sale to United States Gl Conservative A US BA LUX 07/28 USD 14.05 8.4 –7.3 –6.3 Am Income B US BD LUX 07/28 USD 7.94 13.8 2.5 2.5 Eur Income A2 EU BD LUX 07/28 EUR 11.59 25.8 1.8 –1.8 citizens and/or residents except as noted. Prices are in local currencies. Gl Conservative A2 US BA LUX 07/28 USD 15.80 8.4 –7.3 –6.3 discussions about terrorism from of terror from general talks be- have admitted that their nationals as a superpower in the region, India Am Income B2 US BD LUX 07/28 USD 15.12 14.5 2.6 2.5 Eur Income B EU BD LUX 07/28 EUR 6.12 24.8 1.1 –2.5 upgrade > Page 29 All performance figures are calculated using the most recent prices available. Gl Conservative B US BA LUX 07/28 USD 14.03 7.7 –8.3 –7.2 broader talks between the two tween the neighbors wasn’t a sig- and a terrorist organization based has to engage in negotiation—even NAV — %RETURN — Am Income I US BD LUX 07/28 USD 7.94 14.7 4.0 3.9 Eur Income B2 EU BD LUX 07/28 EUR 10.82 25.4 1.1 –2.4 Gl Conservative B2 US BA LUX 07/28 USD 15.07 7.7 –8.3 –7.2 FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR Am Value A US EQ LUX 07/28 USD 7.81 8.3 –14.7 –17.9 Eur Income I EU BD LUX 07/28 EUR 6.12 25.6 2.5 –1.2 Gl Conservative I US BA LUX 07/28 USD 14.10 8.9 –6.5 –5.6 countries on issues such as trade nal that India’s aggressive stance in Pakistan carried out a ghastly if it would seem he had conceded Am Value B US EQ LUX 07/28 USD 7.22 7.6 –15.7 –18.7 Eur Strat Value A EU EQ LUX 07/28 EUR 7.45 7.0 –28.5 –29.3 Gl Eq Blend A GL EQ LUX 07/28 USD 10.15 13.5 –31.8 –25.8 Am Value I US EQ LUX 07/28 USD 8.38 8.8 –14.1 –17.2 Eur Strat Value I EU EQ LUX 07/28 EUR 7.60 7.5 –27.9 –28.6 Gl Eq Blend B GL EQ LUX 07/28 USD 9.56 12.9 –32.5 –26.6 and travel. on terrorism had changed, or that terrorist act in India.” some ground to Pakistan.” Asian Technology A OT EQ LUX 07/28 USD 13.08 49.5 –5.6 –12.3 Eur Value A EU EQ LUX 07/28 EUR 8.00 9.9 –23.0 –26.4 Gl Eq Blend I GL EQ LUX 07/28 USD 10.67 14.1 –31.3 –25.2 Mr. Singh has thrust India’s rela- the formal peace talks between the He said his goal is to ensure long- he joint statement also made ref- Asian Technology B OT EQ LUX 07/28 USD 11.49 48.6 –6.5 –13.2 Eur Value B EU EQ LUX 07/28 EUR 7.39 9.2 –23.8 –27.1 Gl Growth A GL EQ LUX 07/28 USD 36.61 13.5 –32.3 –24.6 Asian Technology I OT EQ LUX 07/28 USD 14.53 50.1 –4.8 –11.6 Eur Value I EU EQ LUX 07/28 EUR 9.20 10.2 –22.4 –25.8 Gl Growth B GL EQ LUX 07/28 USD 30.70 12.9 –33.0 –25.3 tions with Pakistan to the top of two countries would resume re- term peace and stability in the re- erence to new information from Pa- Emg Mkts Debt A GL BD LUX 07/28 USD 14.27 27.8 4.1 4.6 Gl Balanced (Euro) A EU BA LUX 07/28 USD 14.69 9.4 –17.1 –15.6 Gl Growth I GL EQ LUX 07/28 USD 40.52 14.1 –31.8 –23.9 the political agenda in a way few ex- gardless of Pakistan’s action gion, and that the best approach is kistan on the insurgency in the Emg Mkts Debt A2 GL BD LUX 07/28 USD 17.91 28.7 4.3 4.7 Gl Balanced (Euro) B EU BA LUX 07/28 USD 14.36 8.7 –18.0 –16.5 Gl High Yield A US BD LUX 07/28 USD 3.79 34.7 –4.6 –2.4 Emg Mkts Debt B GL BD LUX 07/28 USD 14.27 27.2 3.0 3.6 Gl Balanced (Euro) C EU BA LUX 07/28 USD 14.59 9.2 –17.3 –15.9 Gl High Yield A2 US BD LUX 07/28 USD 7.81 35.6 –4.9 –2.5 pected when he began another five- against terror. What the agree- to “begin to trust each other, but not western province of Baluchistan, a n ALLIANCE BERNSTEIN Gl High Yield B US BD LUX 07/28 USD 3.79 33.7 –5.9 –3.6 Emg Mkts Debt B2 GL BD LUX 07/28 USD 17.32 27.9 3.2 3.7 Gl Balanced (Euro) I EU BA LUX 07/28 USD 14.92 9.8 –16.5 –15.0 Gl High Yield B2 US BD LUX 07/28 USD 12.60 34.8 –5.8 –3.5 year term in office a few weeks ment meant to convey was that Pa- blindly, but trust and verify” that sore point between the two neigh- www.alliancebernstein.com/investments Tel. +800 2263 8637 Emg Mkts Debt I GL BD LUX 07/28 USD 14.27 28.1 4.6 5.2 Gl Balanced A US BA LUX 07/28 USD 14.83 11.6 –17.5 –14.3 Am Blend Portfolio A US EQ LUX 07/28 USD 9.11 11.0 –21.7 –20.4 Emg Mkts Growth A GL EQ LUX 07/28 USD 28.41 41.8 –25.2 –16.2 Gl Balanced B US BA LUX 07/28 USD 14.16 11.0 –18.3 –15.2 Please turn to next page ago. How he fares in this political kistan was making satisfactory the necessary steps are being taken bors. Pakistani officials have re- skirmish could help to set the tone progress in investigating the No- by Pakistan to root out terrorism. peatedly accused India of helping For information about listing your funds, please contact: Peter Jennings, tel: +44-20-7842-9674; email: [email protected] or Carson Wong tel: +852 2831-6481; email: [email protected] for how India deals with Pakistan vember attacks in Mumbai, he said. At the same time, Mr. Singh em- Baluch separatists through its con- 10 THURSDAY, JULY 30, 2009 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. THURSDAY, JULY 30, 2009 23 ECONOMY & POLITICS INTERNATIONAL INVESTOR Investec bragging rights: Taqa Energy buys Macquarie, its model hit, Iraq will close Iranian opposition outpost North Sea oil, Iraqi sovereign decision-making formed Washington several days in only stock-fund winner paints an optimistic view U.S. criticizes attack since the U.S. handed the area over Caspian advance that the government in- gas unit of DSM to Iraqi control in February. TURKEY Sea tended to put a police station inside ing the other sectors. Long-term DUBAI—Taqa Energy—a unit of By Cynthia Koons bank has withstood the financial cri- on MEK’s camp; “It’s a sovereign matter for the the camp, but that the Iraqis didn’t Contrarian product U.K. bond funds ranked second over Abu Dhabi National Energy Co., also And Ross Kelly sis without taking the mammoth T government of Iraq and it’s up to i seek American help or approval. the period with a 6.6% average re- known as Taqa—said Wednesday it write-downs experienced by its U.S. g r praise from Tehran them to resolve this,” said one U.S. i Tehran gained 3.3% for year; turn. had agreed to buy a North Sea oil and SYDNEY—Macquarie Group and European counterparts and Mosul s It now appears that the Iraqi gov- official. “But we would have pre- R The report revealed a similarly gas unit from Amsterdam-based Ltd. offered an upbeat outlook and without reporting a net loss. i ernment intends to go a step further By Charles Levinson v ferred it be handled differently. The e in cracking down on the MEK. Ac- all rivals had losses small number of money-making U.K. DSM NV for Œ285 million ($403 mil- flagged expansion opportunities in Still, the Australian bank was And Peter Spiegel SYRIA r Camp Ashraf outcome wasn’t good and we’re not cording to a statement released equity funds over the three years to lion) including debt. the U.S. and Europe, raising confi- careful to temper its confidence Eup happy about that.” hr By Phil Craig the end of June: two funds from Ma- a Tuesday by the office of Iraqi Prime The deal is part of Taqa’s larger dence that the bank has survived with caution. t IRAN BAGHDAD—The Iraqi govern- e Opposition lawmakers in Iraq s Minister Nouri al-Maliki, the camp jedie, which returned 2.9% and 0.4% strategy to further diversify its oil the worst of the financial crisis. Acting Chairman Kevin McCann R ment said it plans to close a camp i on an annualized basis, and Stan- who oppose Iran’s influence there ver will be shuttered, and residents will Investec Asset Management Ltd. and gas assets. It gives Taqa the The Australian investment said it is too early to say the recent that is home to more than 3,000 have questioned the timing of the op- Baghdad be relocated to a camp elsewhere in has emerged as the manager of the dard Life Investments’ Uncon- Dutch chemical producer’s 40% stake bank, which has been mak- period of “extreme” volatil- members of an Iranian opposition eration, which coincided with an un- Iraq or allowed to travel to a third only mainstream U.K. equities fund strained fund, which returned an an- in pipeline company Noordgastrans- ing headlines for distanc- ity has passed, and Mr. group, a day after launching a vio- announced visit to Iraq by U.S. De- JORDAN IRAQ country of their choosing. to have made money for investors nualized 0.9%. On average, U.K. equi- port BV, as well as shares in three ing itself from the listed-in- Moore said the bank will lent assault on the camp that has fense Secretary Robert Gates. One over the 12 months to the end of ties funds lost 6.2% a year over the The majority of the MEK mem- other pipelines and 20 active oil and frastructure-fund model maintain a conservative ap- been criticized by Washington and independent Sunni lawmaker, Dha- June, a period in which the FTSE All- period. bers inside the camp hold only Ira- gas fields in the North Sea. Taqa said that had become its hall- proach to funding and capi- praised by Tehran. fer al-Aani, said that attacking an Share index sank to its lowest point The negative performance in the nian passports. The MEK’s leaders most of the deal’s value comes from mark, plans to focus on ex- tal. Since members of the group, Iranian opposition group just weeks for more than five years. longer term came despite average Basra have said they are willing to return the pipeline operations. panding globally at a time Macquarie expects known as the Mujahedin el-Khalq, or after the Iranian government bru- Investec’s £213 million ($350 mil- positive performance for U.K. equi- The sale will also boost the compa- when others are offloading earnings for the six the MEK, have enjoyed U.S. military tally crushed street protests to Iran provided there are interna- lion) U.K. Contrarian fund returned ties funds of 11.1% in the second quar- ny’s daily production to the equiva- assets due to the economic months to Sept. 30 to protection since 2004, the raid has throughout Iran sent the wrong sig- 200 miles SAUDI KUWAIT tional guarantees that they will be 3.3% after fees were paid over the pe- ter of this year as stock markets lent of 5,000 barrels of oil, a common downturn. come in halfway between raised questions about whether the nal to the international community. ARABIA Persian safe and won’t be prosecuted—con- riod, making it the best-performing rose. The market gains also in- 200 km Gulf ditions Iran is unlikely to agree to. industry measure of fossil-fuel out- Macquarie said Wednes- the levels reported for the Iraqi government is inching closer to A spokesman for the MEK in among 100 peers and the only one to creased the shares of assets held in day that its balance sheet first and second halves of The U.S. has a mixed history put. Some 85% of that added capacity Iran as the U.S. withdraws its forces. Rome, Shahin Gobadi, accused the make money for clients. Investec is a equities by balanced funds, the re- and funding position is Nicholas Moore its most recent financial onstrators within the camp. The offi- live ammunition, and more than 400 with the MEK. In the 1990s the Investec port said. Balanced funds invest in will be in the form of natural gas, not Iran’s Speaker of Parliament Ali Iraqi government of taking orders di- unit of PLC. “strong” and it has 4.3 bil- year. Last year, Macquarie cial said police then called in the people were wounded. A spokesman State Department included the primarily in stocks and bonds, al- oil. Larijani on Wednesday praised the rectly from Iran’s Supreme Leader The second-best performer was lion Australian dollars (US$3.56 bil- booked a full-year net profit of Iraqi army as backup, and the infan- for the Iraqi police in Diyala province, group on its list of terrorist organi- though a few also include other as- In the coming years, Taqa plans to assault on the group, which was re- Ayatollah Ali Khamenei. the £109 million U.K. Focus fund, lion) in excess of minimum regula- A$871 million, of which A$604 mil- sponsible for a number of attacks try unit that responded acted more where the camp is located, said 45 po- zations because of its links to at- managed by London boutique Ma- set classes. invest £500 million ($822 million) “This is happening now because tory capital requirements. (For lion was earned in the first half, in- against Iranian officials in the 1980s, Khamenei is trying to find a way to forcefully when it entered the camp, lice were also injured in the clashes. tacks against U.S. and Iranian offi- jedie Asset Management, which Weightings in equities at bal- into U.K. North Sea assets acquired more analysis, please see Heard on dicating it is now forecasting a first- and which fought alongside Saddam cover up for its defeat in the streets leading to the clash. However, Iraqi government cials in the 1970s and 1980s. But in lost 4.5%. anced funds offered by U.K. firms in- from Royal Dutch Shell PLC and the Street, page M12.) half profit between A$604 million Hussein in the Iran-Iraq war. of Tehran,” said Mr. Gobadi. “They [the infantry] were not spokesman Ali al-Dabbagh denied 2004 the U.S. military granted mem- The figures were published ear- creased in the second quarter from Exxon Mobil Co., Taqa Energy Manag- and A$267 million. “Although this measure was According to U.S. officials, the un- trained in crowd control,” the U.S. of- that anyone had died in the assault, bers of the MEK in Iraq protected lier this week in the latest quarterly 73.6% to 76.6%, while holdings in ing Director Paul van Gelder said. The The firm is looking at acquisi- taken late by Iraq, it is admirable rest started when a newly appointed ficial said. “They employed some and said Iraqi forces used only nonle- persons status under the fourth pooled-fund performance report cash, bonds and property fell. deal with DSM will bring the value tions in the asset-management in- That means a decline in earn- that they have decided to clear Iraq Iraqi police district commander de- heavy-handed tactics.” He confirmed thal force against the camp’s resi- Geneva Convention, guaranteeing from BNY Mellon Asset Servicing, Alan Wilcock, a performance and of Taqa’s total European holdings to dustry and in the banking and finan- ings from the year-earlier first half, from terrorists,” Mr. Larijani said, cided to put a police station within there had been fatalities in the ensu- dents. He said the raid was simply a that MEK members would be pro- which showed that U.K. equity funds risk-analytics manager at BNY Mel- $2 billion, said a company spokes- cial-services sector. Chief Execu- but indicates the bank is digging it- according to Iran’s state-run Fars the camp, known as Camp Ashraf, in ing conflict, but reports from a U.S. matter of extending the rule of law tected from religious and political lost an average of 21% over the 12 lon Asset Servicing, said, “Positive woman. tive Nicholas Moore said there are self out of the slump that has news agency. order to assert local control. military assessment team had yet to throughout the country, and that po- persecution and that they wouldn’t months to June 30, slightly worse returns from all the main equity mar- DSM said it expects to book a opportunities in investment bank- plagued it since global markets col- U.S. officials, however, said they The U.S. official said that at first, determine the total number of dead. lice only entered the camp by force be forcibly transferred to a country than the FTSE All-Share index’s loss kets, combined with good results profit of about Œ275 million after tax ing in the U.S. and Europe. lapsed after Lehman Brothers were unhappy about the way the unarmed Iraqi riot police trained in MEK members inside the camp after the MEK rebuffed police re- where they might face such persecu- of 20.5%. The report covered pooled from the corporate bond market, on the sale of DSM Energie Holding The relatively positive outlook failed in September. raid was handled, though they crowd control were deployed, but said eight members of the group quests to enter peacefully. tion. Iraq has assured the U.S. it will funds available for investment by meant that the majority of equity BV. Last year, DSM Energy realized indicates that the worst may be be- —Iain McDonald stressed that it was a matter for they were quickly overrun by dem- were shot dead by Iraqi forces using U.S. officials said Iraq had in- live up to these assurances. U.K. pension funds. and bond funds were in positive ter- net sales of Œ161 million. hind Macquarie. The investment contributed to this article. The figures exclude portfolios ritory for the second quarter of the that invest in small-cap stocks, year; a welcome change to prior pe- which lost an average of 20.6%. riod results.” Only property funds performed Over the three years to the end of Pentagon chief urges Kurds to end conflict with Baghdad worse than U.K. equities funds over June, only U.K.-based emerging- the year, according to the report, av- market equities and bond funds re- By Yochi J. Dreazen armed conflict with the Iraqi central with Baghdad and offered American settle some of these disputed is- The crisis was averted when U.S. eraging a loss of 22.4%. Interna- ported positive average perform- And Charles Levinson government over land and oil. help mediating their disagreements sues,” said Geoff Morrell, Mr. military intermediaries were able tional bond funds returned 25.1% on ance, according to BNY Mellon. Mr. Gates told leaders of Iraq’s with the government of Prime Minis- Gates’s spokesman. “He reminded to persuade both sides to stand average, dramatically outperform- —From Financial News ERBIL, Iraq—U.S. Defense Secre- semi-autonomous Kurdish region ter Nouri al-Maliki. his hosts that we have all sacrificed down and move their forces away tary Robert Gates pressed Kurdish that they were running out of time “We urged them to take advan- too much in blood and treasure to from the city. leaders to step back from a potential to reach a political accommodation tage of our remaining time in Iraq to see the gains of the last few years The incident was the highest- lost due to political differences.” profile manifestation of the heated The U.S. is concerned that the dispute between the two sides over Globe Specialty Metals adds Kurdish-Arab dispute could soon the boundaries of the Kurdish au- turn violent, reigniting the coun- tonomous region, the future of oil- try’s sectarian bloodshed and imper- rich Kirkuk, and the division of Nasdaq to its AIM listing THE/FUTURE LEADERSHIP/INSTITUTE iling the Obama administration’s Iraq’s oil revenue. Powered by EXECUTIVE LEARNING PARTNERSHIP hopes of accelerating the U.S. mili- During his meetings here with By Lynn Cowan new listings for Nasdaq OMX. “The And Rachael Gormley Bringing Universities and Businesses Together tary withdrawal from Iraq. Kurdish President Massoud Barzani No. 1 issue we hear is the lack of li- Local to Iraq’s overall security situation and other top officials, Mr. Gates quidity.” BVCA The Journal Europe The Journal Europe has remained largely stable since said the U.S. was prepared to help As one U.S. company that is AIM is the LSE’s marketplace for global: the Future Leadership Looking for the Future Leadership U.S. combat forces withdrew from mediate, but he didn’t offer any spe- listed on London Stock Exchange up-and-coming companies, and has Recovery Institute supports Institute supports the country’s cities last month, and cific compromise proposals. Group PLC’s junior market prepares been marketed as a welcoming list- Summit right MBA? Mr. Gates said that there “was some Instead, Mr. Morrell said, the de- to add a U.S. listing, the exchange ing venue with hands-off regulation Strategy for chance of a modest acceleration” of fense chief endorsed the work of a that lured it over says more want to and less paperwork than the London 2010 “Tauromachie” Meet top business “Doris Gray Student the U.S. drawdown in Iraq. United Nations team that issued a re- do the same. Stock Exchange and the Nasdaq. The 2009 schools one-to-one with Conference” There are roughly 130,000 Ameri- port in April outlining possible solu- Shares in Globe Specialty Met- number of companies trading there The CEO’s fights : What can troops in Iraq, and U.S. command- tions. One recommendation calls for als Inc. are expected to begin trad- is around 1,400, down from a peak of Access MBA Tour for female students in lessons from the bullring? ers have already announced plans to making the disputed city of Kirkuk a ing on Nasdaq Thursday. The com- around 1,700. engineering and withdraw two brigades, or roughly governorate with formal ties to both pany, a large producer of silicon AIM officials say that while list- A Premier Cercle 1 October: Vienna technology 10,000 troops, by the end of the year. Baghdad and Kurdistan as a way of metal and silicon-based specialty al- ings are down, the decline has no cor- 4 October: St. Petersburg Mr. Gates, speaking to reporters lowering the tensions surrounding loys used in a variety of industries, relation to the level of liquidity. The UK plays an important role in the global private Conference aboard his plane en route back to the the city’s fate. will retain its Alternative Invest- “There’s a whole range of rea- 20 October: Rome a Women’s Engineering equity and venture capital industry, and the BVCA U.S., said a third brigade might now The U.N. report has drawn a ment Market listing when it begins sons why companies leave AIM,” an Summit will convene the principal players from across 29 October, 2009 5 November: Riyadh Society conference also be able to leave Iraq this year. muted response from Kurdish and trading under the Nasdaq symbol LSE spokesman said. “Some move to the globe to assess the recovery strategy for 2010. The growing Kurdish-Arab ten- Iraqi leaders. Kurdish officials GSM following a 14-million-share the main market or engage in corpo- Simon Havers Chairman, BVCA and Managing Sponsored by: Maison de l’Amerique Register today at 14-15 November 2009 sions are threatening to slow the have avoided rejecting it outright, follow-on offering. rate transactions like reverse take- Director, Baird Capital Partners Europe U.S. withdrawal plans. Gen. Ray Odi- because it appears to have the Executives declined to comment overs. There are also some compa- Latine, Paris Edinburgh, Scotland erno, the top American military com- backing of the U.S., though many on their decision to list on Nasdaq or nies for whom it is no longer cost-ef- www.accessmba.com mander in Iraq, told reporters Tues- Kurds say they’re not happy with plans for their AIM listing, citing a fective to be on the market. I don’t Join leaders from the worlds of private equity, politics, institutional Principal Sponsor www.premiercercle.com/ investment, corporate business and regulation for an essential day tauromachie www.wes.org.uk day that he sees Kurdish-Arab fric- the U.N. recommendations or the quiet period surrounding their think there’s a direct correlation to tion as the biggest problem facing American pressure to embrace stock sale. liquidity [and delisting]. We’re con- of thought-leadership, debate and networking. Contact: [email protected] Iraq, replacing the Shiite-Sunni di- them. While Nasdaq OMX Group Inc. of- tinuing to do what we can to help li- Co-Sponsor 14 October 2009, The Hilton, London The Wall Street Journal Europe is vide that had initially triggered Some Arab political leaders have ficials say that more AIM-listed com- quidity. We’re looking at how we read every day by 40,500 students at 180 top panies are expressing interest in Iraq’s civil war. complained privately that the re- make market making more attrac- View the full agenda and book your place at business schools and university campuses across “That’s probably our No. 1 driver port is biased toward the Kurds. heading to the U.S., citing a lack of li- tive...and have launched a research Mid-Market Stream Sponsor Europe, a program supported by www.bvcasummit.com of instability,” he said. “We’re watch- Some of Mr. Maliki’s political allies quidity on AIM, only a handful so far service to increase the visibility of ing very carefully to see that this blame the Kurds for fueling the coun- have actually done so. companies in the market.” doesn’t escalate.” try’s sectarian tensions by forcibly “I would say I’ve received well The New York Stock Exchange, Kurdish and Iraqi troops came seizing control of broad swaths of over a dozen inquiries [from AIM- operated by NYSE Euronext, says it close to an armed confrontation last northern Iraq in the security vac- listed companies], but I don’t know doesn’t have data on AIM compa- Executive Learning Partnership - ELP: Strategy & Learning Architects: www.elpnetwork.com month outside Makhmur, a predomi- uum that followed the U.S. invasion how many of those will move for- nies that have expressed an interest nantly Kurdish town in northern Iraq. in 2003. ward,” said Bob McCooey, head of in listing on one of its venues.