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* * * * * * * WEDNESDAY, JUNE 9, 2010 ~ VOL. CCLV NO. 133 H H H H $ 2 .0 0

CONTENTSCorporate News B2,3,6,7Deals & Deal Makers C3Heard on the Street C16International Finance C2Leisure & Arts............ D5Opinion.................. A15-17

Property Report C1,6-10Sports.............................. D6Stocks in the News C5Technology Journal B4,5U.S. News................. A2-8Weather Watch........ B8World News... A9-13,18

DJIA 9939.98 À 123.49 1.3% NASDAQ 2170.57 g 0.2% NIKKEI 9537.94 À 0.2% STOXX 50 2338.51 g 1.0% 10–YR TREAS À 4/32 , yield 3.171% OIL $71.99 À $0.55 GOLD $1,244.00 À $4.70 EURO $1.1947 YEN 91.39

s Copyright 2010 Dow Jones & Company. All Rights Reserved

Vital Signs

n The number ofunemployed workers perjob opening nudged down to5 in April from 5.4 the priormonth, the LaborDepartment said. Theimprovement came from a10.5% increase in jobopenings, even as the hiringrate was unchanged. Thatcould be a sign thatsustained job growth iscoming, as employers shiftto filling more of those slotsin the months ahead.

’04 ’06’05 ’07 ’08 ’09 ’10

Number of unemployedworkers per available job,seasonally adjusted

0

2

4

6

Source: Labor Department

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Do You Know, Offhand,Anyone Who Knows Shorthand?

i i i

As a Skill Fades, Translators Are in Demand;Ms. Sanders Charges 20.5 Cents a Word

RYE, Colo.—The JeffersonCounty Attorney’s office, 160miles north of here, handled ahumdrum employmentcase a while ago thathad an unusual piece ofevidence: a 200-pagedocument handwrittenin loops and curls rec-ognizable as some kindof shorthand.

“The question was:Who can read this? Theanswer was: Nobody,”says Deborah Hokanson,a legal assistant in theoffice. “The paperswere in shorthand and I couldn’tfind anyone to translate them.”

Until she came upon LethaSanders, who lives in a smallhouse in this flyspeck town withher husband and eight caged fer-rets. In a corner of a bedroompiled with quilting supplies, Ms.Sanders sits in front of two com-

puter screens operating “Short-hand Translation Services,” anenterprise she has just gotten upand running on the Web. Herservice is to try making sense, in

English, of the scrib-blings in shorthandthat people send her.

American girls andsome boys used tomake sense of it ontheir own. They took itin school—or secre-tarial school—and thentook letters in officesor transcripts in court.Some went on to keepdiaries in shorthandand write shorthand

wills. But most schools stoppedteaching it, and for today’s untu-tored, shorthand might as wellbe hieroglyphics.

“The wife dies and the hus-band wants to know what’s inthose pages—any infidelity,” Ms.Sanders was saying one morn-

Please turn to page A14

BY BARRY NEWMAN

Letha Sanders

Stocks in the U.S. stageda late rally, belying what

was otherwise a day of con-tinued anxiety about theworld economy. The Dow in-dustrials gained 123.49 points,or 1.3%, to 9939.98. Comexgold futures rose $4.70 to$1,244.00 a troy ounce, a re-cord for the exchange. C1, C12

n EU finance officials pro-nounced the need for more-centralized planning of na-tional budgets, but sometook care to draw a line. A10n Britain’s debt problemsreturned to the spotlight asFitch called for bigger aus-terity measures, sending Eu-ropean stocks lower. A10, C2

n A battle over how invest-ment partnerships are taxedis coming to a head as SenateDemocrats unveiled a pro-posal to more than double thetaxes on fund managers. A1

n The banking industry un-leashed a last-ditch effort tostrip new debit-card restric-tions from proposed finan-cial-overhaul legislation. C1

n Switzerland’s lower houserejected a bill to allow the gov-ernment to hand over namesof alleged American taxdodgers, jeopardizing a dealbetween the U.S. and UBS. C2

n Chrysler is preparing asustained marketing push toenergize dealers and recon-nect with consumers follow-ing its reorganization. B1

n GM is recalling over 1.5million cars and trucks soldglobally due to a glitch in thewindshield wiper fluid sys-tem that could ignite a fire. B3

n Americans cut back oncharitable donations for thesecond year in a row in 2009amid continued economicuncertainty. Donations fell3.6% to $303.75 billion. A2

n Dubai’s Emirates Airlineordered 32 additional AirbusA380s, announcing the $11.5billion deal in Germany’s cap-ital to ramp up a trade fightwith flag carrier Lufthansa. B1

n Star investor Louis Baconof Moore Capital, who hasscored annual gains of about20% on average over thepast two decades, sufferedlosses of 9.2% in May. C1

n Cerberus has found a wayto possibly salvage its in-vestment in real-estate firmLNR, but would have to shareownership with Vornado. C1

n Tesco named its Europeand Asia chief, Philip Clarke,to succeed CEO Terry Leahy inMarch, a sign the British super-market giant will continuean aggressive global push. B1

n Health-care IT providersAllscripts-Misys and Eclipsysare expected to merge in anall-stock transaction valuedat $1.35 billion. B3

n Debt-ridden Central Falls,R.I., has taken the rare stepof handing control of its fi-nances to a receiver. C13

n Eleven states held prima-ries in a turbulent campaign.Arkansas Sen. Blanche Lin-coln narrowly won a Demo-cratic runoff, barely avoidingbecoming the third senatorthis year to be defeated byher own party. Californiavoters sent former tech-com-pany chief executives MegWhitman and Carly Fiorinainto the races for governorand Senate. In South Caro-lina, tea-party favorite NikkiHaley survived to advance herbid to become governor, whilesix-term Rep. Bob Inglis wasforced into a runoff. A1, A5

In Nevada, conservativeoutsider and tea-party pickSharron Angle won the Re-publican nomination tochallenge Senate MajorityLeader Harry Reid.

n Scientists found extremelyhigh levels of oxygen-deplet-ing methane in Gulf waters.Federal researchers acknowl-edged the existence of plumesof underwater oil many milesfrom the leaking BP well. A8

n The U.N. Security Councilis set to pass sanctions againstIran that strengthen the inter-national effort to rein in Teh-ran’s nuclear ambitions. A9

n Three Chinese residentswere shot and killed by NorthKorean border guards dur-ing an apparent smugglingoperation, Beijing said. A13

n The FBI said it was probingthe shooting by a U.S. borderagent that witnesses said killeda 15-year-old Mexican on theMexican side of the border. A6

n Blagojevich’s trial openedwith prosecutors arguing thatthe former Illinois governor’sdebt burden led him to pur-sue corruption schemes. A3

n Federal and state agenciessent investigators to probe anenormous natural-gas blast inTexas that killed one workerand injured several others. A7

n Nearly 140 doctors weresanctioned for allegedlycheating on internal medicineboard-certification tests. A6

n Two American troops werekilled by a roadside bomb inAfghanistan and a British sol-dier was shot dead on patrol.n Suspected militants at-tacked trucks in Pakistan carry-ing military vehicles for NATOforces in Afghanistan. A13

n Japan’s new prime ministerunveiled a cabinet picked tosignal a heightened resolveto curb public debt. A13

n Lax infection control is aserious problem at many of thecountry’s same-day surgerycenters, a new study found. A7

n Aviation regulators fromthe U.S. and Europe clashedover the hazards of flyingthrough low levels of ash. A13

n A Dutch man who was sus-pected in a U.S. teen’s disap-pearance admitted killing awoman in Peru, police said. A13

What’s News–i i i i i i

Business & Finance World-Wide

Follow the news all day at WSJ.com

SOWETO, South Africa—In 1994, the townshipof Soweto helped midwife a new nation, topplinga white racist regime after years of protests andelecting Nelson Mandela as South Africa’s firstblack president.

Today, Soweto is home to upscale shoppingmalls, tidy row houses and a state-of-the-artsports stadium that will host Friday’s opening ofthe World Cup. As barriers to government andjobs have fallen and foreign investment has picked

BY PETER WONACOTT

Soweto Turns Anger on ANCAs World Cup Opens, South Africa’s Poor Complain of Neglect

up, a black middle class has emerged, a corner-stone of the new South Africa that will be show-cased during the month-long soccer tournament.

But prosperity has spread only so far. And 16years after the end of white minority rule, manyhere now complain of oppression of a differentsort: government neglect.

This time, the sing-song marches, angry slo-gans and burning tires are most often directed atthe African National Congress, the ruling party ofMr. Mandela and South Africa’s current president,

Please turn to page A14

TheUltimate Hotel Room:For $35,000 aNight: A Butler,AWaterfall and a FreeMinibar D1

GREATERNEW YORK

‘You Will Not Fear … the Arrow That Flies by Day’

RESCUE AND PROTECT: Staff Sgt. Edward Rosa reads the Bible and extends a cigarette to Pfc. JorgeRostran Obando, who was stunned by an explosion in Afghanistan’s Arghanab Valley. One comrade was killedand two injured in the blast. Pfc. Rostran asked the sergeant to read Psalm 91, a favorite from his childhood.

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A three-year battle over howthe federal government taxes in-vestment partnerships is comingto a head, after Senate Demo-crats unveiled a proposal thatwould more than double thetaxes on private-equity, hedge-fund and certain real-estatemanagers.

The move is the strongest in-dication yet that financiers will

pay higher taxes to help close anexpanding U.S. budget gap. Con-gress is taking aim at the per-ceived excesses of the financial-services industry, but the pro-posed changes have implicationswell beyond Wall Street.

The proposed law would tax“carried-interest” income, or theshare of profits that fund man-agers receive as part of theircompensation. This income iscurrently taxed at a 15% rate,while the ordinary income by

most wage earners is taxed at upto 35%. The new law would raisethe tax rate for partnership in-come to an effective 30% in 2011and 33% in 2013.

Those sponsoring the bill saythe proposed measure rights afundamental unfairness in thetax code. Lawmakers say thepeople running partnershipshave been paying capital-gainsrates on what were basicallywages. Opponents of the bill sayit will discourage investments

needed to create growth andjobs. Douglas Lowenstein, presi-dent of the Private Equity Coun-cil, an industry trade group, sayscarried interest is properly rec-ognized as a capital gain because“earning carried interest in-volves taking risks, making long-term investments and exposingyourself to the possibility thatyou’ll have to return your earn-ings if things don’t work out,” hesaid. “No one who gets a pay-

Please turn to page A2

BY PETER LATTMANAND LAURA SAUNDERS

Showdown on Fund Taxes

Arkansas Sen. Blanche Lin-coln pulled out a narrow victoryin the Democratic primaryagainst a liberal challenger on anight when voters across the U.S.showed both the power and lim-its of this year’s anti-establish-ment tide.

Eleven states held primariesTuesday, the busiest day so far ina nomination season stretchingfrom February to September inadvance of the Nov. 2 generalelections. In California, formereBay Inc. Chief Executive MegWhitman handily won the Re-publican nomination for gover-nor against state Insurance Com-missioner Steve Poizner, theAssociated Press reported.

Carly Fiorina, former CEO ofHewlett-Packard Co., won Cali-fornia’s GOP primary for Senate,the AP reported. She will faceSen. Barbara Boxer, who won re-nomination Tuesday.

In Nevada, Sharron Angle, aconservative insurgent, won anupset victory over more estab-lished Republicans for the rightto challenge Senate MajorityLeader Harry Reid in November.

Ms. Lincoln avoided becom-ing the third senator this year tobe defeated by her own party.Labor unions and liberal groupshad sought to make an exampleof Ms. Lincoln for her deviationfrom liberal positions, puttingmillions of dollars behind Lt.Gov. Bill Halter’s unsuccessfulchallenge.

Even Ms. Lincoln ran assomething of an outsider, saying

Please turn to page A5

BY NAFTALI BENDAVIDAND VALERIE BAUERLEIN

LincolnBucksWaveAgainstIncumbents

Campaign 2010See updates and expandedcoverage of primary electionresults at WSJ.com/Politics.

Source: Barron’s “Top 100 Women Financial Advisors,” June 7, 2010. Barron’s is a registered trademarkof Dow Jones & Company, L.P. All rights reserved. Factors considered in this ranking include assets undermanagement, revenue produced for the firm and quality of service. Investment performance is not acriterion. Neither Morgan Stanley Smith Barney nor any of their financial advisors pay a fee to Barron’sin exchange for the rating. For more information on ranking methodology, go to http://online.barrons.com/report /top-financial-advisors?mod=BOL_hps_tnav_ranks or contact Barron’s Associate Editor,Matt Barthel, at matthew.barthel@barrons.com.©2010Morgan Stanley Smith Barney LLC. MemberSIPC. Morgan Stanley Private Wealth Management is a division and Graystone Consulting is abusiness of Morgan Stanley Smith Barney LLC. 6/10 GP10-01328P-T06/10

Morgan StanleySMith Barney

Martha adamTroy, MI

emily BachOrinda, CA

anouchka BalogLaguna Niguel, CA

Melissa CampbellScottsdale, AZ

lee CoreyAlexandria, VA

Mary DeatherageLittle Falls, NJ

ami FortePalm Harbor, FL

Susan KlarPalo Alto, CA

Karen McDonaldPalo Alto, CA

erna Morgan McreynoldsOneonta, NY

Kathleen roeserChicago, IL

Kathleen WeberBellevue, WA

PriVate WealthManageMent

nancy CooleyNew York, NY

lisa DetannaBeverly Hills, CA

Kimberley hatchettNew York, NY

Susan KingsolverNew York, NY

Falisha MamdaniNew York, NY

Deborah MontapertoNew York, NY

rebecca rothsteinBeverly Hills, CA

Stephanie twomeyMenlo Park, CA

nadine WongNew York, NY

grayStoneConSUlting

elaina SpilovePhiladelphia, PA

Outstanding PerformanceMorgan Stanley Smith Barney congratulates our colleaguesnamed to Barron’s “top 100 Women Financial advisors”

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