World Watch -- WSJ

BRAZIL

Police Allege Fraud at 4 Pension Funds

Brazilian police said they launched an investigation into an alleged fraud of as much as 8 billion reais ($2.5 billion) at the country's four largest pension funds, all of which are linked to state-controlled companies.

A judge ordered the freezing of assets worth that amount, belonging to a total of 103 people and companies, the Federal Police said. Brazilian police and prosecutors have been attacking corruption in the past few years with investigations targeting company executives and politicians.

--Rogerio Jelmayer

FRANCE

Protesters Demand End to Migrant Camp

Truck drivers, farmers and shopkeepers blocked a highway leading into the French port of Calais, demanding the dismantlement of a sprawling migrant camp and snarling traffic in one of Europe's busiest transport hubs.

Despite efforts by the government to empty out the camp, the number of migrants in Calais has more than doubled over the past few months, reaching a record 9,000 migrants in August, according to aid workers.

--Noemie Bisserbe

Sarkozy Could Face Trial Over Finances

French prosecutors said they recommended former President Nicolas Sarkozy and 13 others stand trial for allegedly breaking campaign finance rules during his failed re-election bid in 2012.

The recommendation comes after prosecutors concluded their investigation of Mr. Sarkozy on preliminary charges of "illegal financing of an election campaign for having surpassed as a candidate the legal ceiling for election spending."

Mr. Sarkozy has repeatedly denied involvement in an alleged system to circumvent campaign spending rules. His lawyer said the recommendation was a "crude political maneuver."

The prosecutors' decision creates headwinds for Mr. Sarkozy as he mounts his comeback for the 2017 presidential elections.

It is unclear when judges will decide on the prosecutors' recommendation and Mr. Sarkozy could appeal that decision.

--William Horobin

JAPAN

BOJ Is Cautious on Negative Rates

Bank of Japan Gov. Haruhiko Kuroda acknowledged that there were downsides to his negative-interest-rate policy, suggesting caution about further reductions.

Mr. Kuroda's emphasis on the potential damage from negative rates pointed to a growing sense even among proponents that easing could go too far. He said negative rates particularly hit the profit of financial institutions.

--Takashi Nakamichi

(END) Dow Jones Newswires

September 06, 2016 02:48 ET (06:48 GMT)

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