【华尔街日报亚洲版】June 6th 2012

VOL. XXXVI NO. 195 * * WEDNESDAY, JUNE 6, 2012 OPINION: Curb Your Enthusiasm On Burma Page 13 Apple’s Fight With Google Expands to Mobile Maps Apple’s Fight With Google Expands to Mobile Maps Apple’s Fight With Google Expands to Mobile Maps IN DEPTH Pages 14-15IN DEPTH Pages 14-15 As of 12 p.m. ET DJIA 12078.76 g 0.19% FTSE 100 5260.19 CLOSED Nikkei 225 8382.00 À 1.04% Shanghai Comp. 2311.92 À 0.15% Hang Seng 18259.03 À 0.40% Sensex 16020.64 À 0.20% S&P/ASX 200 4043.70 À 1.47% asia.WSJ.com (India facsimile Vol. 3 No. 256) Australia:A$6.00(InclGST),Brunei:B$7.00,China:RM B25.00,Hong Kong:HK$20.00(InclM acau),India:Rs30.00,Indonesia:Rp18,000(InclPPN),Japan:Yen500(InclJCT),Korea:W on2,500, M alaysia:RM 7.00,Pakistan:Rs140.00,Philippines:Peso80.00,Singapore:S$4.50(InclGST),SriLanka:Slrs180(InclVAT),Taiw an:NT$60.00,Thailand:Baht50.00,Vietnam :US$2.50 KDN PP 9315/10/2012 (031275) M ICA (P) NO.030/10/2011 SK.M ENPEN R.I.NO:01/SK/M ENPEN/SCJJ/1998 TGL.4 SEPT 1998 Iran in Focus for China, Russia SyriaAlsoaTopic At Central Asia Summit inBeijing BEIJING—Iran’s president will attempt to shore up sup- port from Russia and China during a closely watched sum- mit of Central Asia leaders be- ginning Wednesday in Beijing, just as concerns rise over Tehran’s nuclear program. Meanwhile, the meeting provides an opportunity for Russia and China to seek to persuade Iran to tamp down provocations in a friendlier atmosphere than meetings with a heavy Western pres- ence. Russia and China are also expected to discuss Syria, as they face increasing interna- tional pressure to more force- fully respond to attacks on ci- vilians there. The two have blocked international efforts to take a tougher stance against Damascus. The annual meeting of leaders of the Shanghai Coop- eration Organization will spotlight China’s growing de- mand for oil and natural gas and its efforts to build stron- ger ties with resource-rich Central Asian nations. It comes as Russia and China re- main deadlocked in negotia- tions over major gas-pipeline projects once intended to highlight energy cooperation between the countries. Russian President Vladimir Putin arrived in Beijing on Tuesday and met with China President Hu Jintao. The two pledged to deepen coopera- tion on nuclear power, among other matters; further details weren’t disclosed. The two countries also unveiled details of a previously announced in- vestment partnership that they hope will raise as much as $4 billion, and a person fa- miliar with the matter said its initial investment will be about $200 million in a Rus- sian timber company. Iranian President Mahmoud Ah- madinejad was also expected to arrive later Tuesday. Along with Russia and China, other organization member states include Ka- zakhstan, Kyrgyzstan, Tajiki- stan and Uzbekistan. Iran holds observer status, as do India, Pakistan and Mongolia. Afghanistan President Hamid Karzai is also expected to attend. Leaders may dis- cuss regional security cooper- ation, particularly as an ex- pected withdrawal from Afghanistan by North Atlantic Treaty Organization forces draws nearer and Afghani- stan’s stability comes under scrutiny. China’s and Russia’s close economic and strategic ties to Iran will play a central part in this week’s talks, with Iran looking for support as it deals with rising pressure from the U.S. and Europe over its nu- clear ambitions. Washington has expressed increasing wor- ries that Iran is developing nuclear weapons, while Teh- ran insists its efforts are peaceful. Iran, which relies on China Please turn to page 16 BY BRIAN SPEGELE AND WAYNE MA G-7 Officials Urge Bolder Euro Action WASHINGTON—Financial chiefs from the Group of Seven leading nations pressed Europe in a teleconference to act more aggressively to tame its escalating debt crisis, ex- pecting euro-zone leaders to bolster their banking system in the coming weeks. Officials in the U.S. and some other G-7 countries are worried that European leaders aren’t acting quickly or boldly bold enough to fix a crisis that threatens to send the region into a severe recession, hurt- ing other economies around the world. A primary focus of Tues- day’s call was Spain, where the government is struggling to recapitalize banks that are saddled by billions of euros in bad real-estate loans. Al- though Spain isn’t a member of the G-7, Spanish officials participated on the call. Spain’s Budget Minister Cristóbal Montoro said its euro-zone partners need to act more swiftly to help sup- port its enfeebled banks. He said the Spanish government has effectively lost access to capital markets because of ris- ing borrowing costs. Europe’s contingency plans for a possible Greek default and exit from the euro zone also are a top worry of the of- ficials on the call. There was no official statement issued by the G-7 after the call. But a U.S. Trea- sury official said finance ministers and central bankers “reviewed developments in the global economy and fi- nancial markets and the pol- icy response under consider- ation, including the progress toward financial and fiscal union in Europe.” Japan’s Finance Minister Jun Azumi said the European officials on the call “said they would handle the issues, in- cluding Spain’s debt problems, in a responsible manner, and I trust them.” But he remained vague on whether European officials pledged any new measures, saying, “I said I want them to take detailed steps in a suc- Please turn to page 16 By Ian Talley, Jeffrey Sparshott and David Román IKEA’s Product Names Make Shoppers Blush in Thailand i i i Swedish Retailer Hires Local Linguists to Police Racy Translations BANGKOK—Is Redalen a) a town in Norway b) a bed sold by Swedish furniture chain IKEA or c) something that sounds uncomfortably close to getting to third base in Thailand? The answer, it turns out, is all three. IKEA is famous for using tongue-twisting Scandi- navian names to help identify its sofas and beds. But as the big-box retailer expands into fast-growing new markets, it is discovering that those hard-to-pronounce names can also have other meanings, and that spells trouble in other languages. Take Thailand, for exam- ple. IKEA launched a new su- perstore here late last year, its fifth-largest in the world. It is packed with shoppers seek- ing bargains among the assemble-it-your- self furniture or wolfing down Swed- ish meatballs in the IKEA restaurant. Reading a stan- dard IKEA catalog aloud, though, can draw strange looks, or worse. Besides the Redalen bed, there is the very nice Jättebra plant pot, which can sound in part like a crude Thai term for sex, and a host of other problematic words. To solve that problem, IKEA is saying adjö (Swedish for adieu) to unintentionally saucy product names, and hej (hello) to a team of Thai speakers who modify terms so they can’t be so easily misin- terpreted. “The Swedish…words are important because they bring a unique character to the brand,” says one member of the team, Natthita Opaspipat. She spent nearly four years preparing for the launch of IKEA’s Bangkok store by care- fully scrutinizing terms to see how they sounded in Thai be- fore transliterating them into Thailand’s cursive, Sanskrit- influenced alphabet. In some cases, she and other team members change a vowel sound or a consonant to pre- Please turn to page 16 BY JAMES HOOKWAY Redalen bed Inside Qantas warns of a full-year loss and the president of Emirates forecasts more gloom. Business & Finance ....................................... 17, 32 Royal Dutch Shell’s CEO says Europe is behind the U.S. and Asia in locking in energy supply, leaving it vulnerable to price swings. World News..........................................................8 dingbat Azumi suggests G-7 is open to yen moves............................... 4 Russia’s Vladimir Putin with China’s Hu Jintao at Beijing’s Great Hall of the People on Tuesday. A ss oc ia te d Pr es s weibo.com/pdfmags 2 | Wednesday, June 6, 2012 * * THEWALL STREET JOURNAL. THE WALL STREET JOURNAL ASIA Dow Jones Publishing Company (Asia) 25/F, Central Plaza, 18 Harbour Road, Hong Kong Tel 852-2573 7121 Fax 852-2834 5291 www.wsj-asia.com SUBSCRIPTIONS and Address Changes, please telephone our local customer service hotline, Hong Kong/Taiwan: 852-2831 2555; Beijing: 86-10 6581 4090; Shanghai: 86-21 5836 8228; Indonesia: 62-21 527 7592; Japan: 81-3 6269-2760; Korea: 82-2 3700 1925; Malaysia: 60-3 2026 4061; Philippines: 63-2 848 5873; Singapore: 65-6415 4000; Thailand: 66-2 690 4222 to 7; India: 91-11 6462 0215. Or email: service@wsj-asia.com ADVERTISING SALES worldwide through Dow Jones International. Hong Kong: 852-2831 2504; Singapore: 65- 6415 4300; Tokyo: 81-3 6269-2701; Frankfurt: 49 69 29725390; London: 44 207 842 9600; Paris: 33 1 40 17 17 01; New York: 1-212 659 2176. Or email: wsja.publisher@dowjones.com Trademarks appearing herein are used under license from Dow Jones & Company. USPS 337-350ISSN 0377-9920 PAGE TWO ONLINE TODAY Most Read in Asia 1. Pacquiao and His Best Friend 2. Software Raises Bar for Hiring 3. Talk of Tiananmen Muzzled on Chinese Web 4. The Benefits of Sleeping Together 5. Qantas Warns of Earnings Plunge Most Emailed in Asia 1. The Benefits of Sleeping Together 2. Opinion Asia: Philip Bowring: China’s Invented History 3. Road Project Trips China Builder 4. MF Global Autopsy Flags Corzine Risks 5. Germany Signals Shift on Crisis India Real Time: Video wsj.com/indiarealtime South Asia Bureau Chief Paul Beckett on the ‘Baby Falak’ series. Scene Asia: Video wsj.com/scene Pacman, Manny Pacquiao’s four- legged training partner. Southeast Asia wsj.com/searealtime Scoot’s inaugural flight takes off late after technical glitch. i i i Business & Finance n General Motors’ sales in China increased 21% in May on strong demand for microvans despite re- cent indications of the country’s slowing economic activity. 19 n A scientist employed by one of China’s main pharmaceutical-re- search firms was found guilty of stealing and selling patented com- pounds owned by Merck. 19 n TransCanada plans to build a $3.85 billion natural-gas pipeline connecting one of North America’s richest gas basins to an LNG ex- port terminal planned by Shell and several Asian partners. 21 nMicrosoft plans to boost the number of outlets offering its sub- scription plan for the Xbox, an ef- fort to attract more users by low- ering upfront costs of acquiring the game console. 22 n A turf war is heating up be- tween processor-chip designers Intel and ARM, ahead of the launch of Windows 8. 22 n Australia reduced interest rates by a further 0.25 percentage point, in a pre-emptive move to buttress its economy. 3 n German real-estate funds fac- ing redemption demands from in- vestors are planning to liquidate about $25 billion in assets, which could pressure property values in markets throughout Europe. 23 n Chinese film distributor Bona is in talks with Hollywood studios about co-producing movies for in- ternational distribution. 21 i i i World-Wide n Syria’s government agreed to allow aid workers and supply con- voys into four of the hardest-hit provinces, even as the country ex- pelled a string of U.S. and Euro- pean diplomats. n Al Qaeda’s No. 2 leader, Abu Yahya al-Libi, was killed in a CIA drone strike Monday in the tribal areas of Pakistan, U.S. officials said. WSJ.com n The U.S. is encouraging India to take a more active role in Af- ghanistan after years of keeping New Delhi’s participation limited in deference to Pakistan. 5 n Philippine President Aquino is headed to the U.S. this week to strengthen ties at a time of ten- sions between Manila and China. 3 Women enjoy a drink at a beer garden in Tokyo. Japanese brewer Kirin is offering relief for a steamy summer—cold draft beer topped with frozen froth. Re ut er s Inside Asia News: U.S. professor is a hit in South Korea. 5 World News: CIA prepares to draw down Iraq operation. 7 Business & Finance: Nintendo bets on multi-screen games. 17 Deal Journal Asia: M&A boom in Japan is a bust for fees. 17 What’s News— weibo.com/pdfmags THEWALL STREET JOURNAL. Wednesday, June 6, 2012 | 3 WORLD NEWS Aquino to Visit U.S. Amid China Tension Philippine President Benigno Aquino III is scheduled to arrive in the U.S. on Wednesday on a visit to strengthen warming ties between the two countries, even as tensions continue between Manila and Bei- jing in the contested waters of the South China Sea. On Tuesday, those tensions ap- peared to cool slightly, after the Philippine government said that China and the Philippines had pulled back maritime-surveillance vessels from the center of a contested shoal, where they have been locked in a weekslong standoff over territo- rial rights. The Philippines' Department of Foreign Affairs said China withdrew two coast-guard vessels from a la- goon at the middle of Scarborough Shoal, 119 nautical miles, or about 220 kilometers, off the Philippines’ northeast coast. A Philippine fisher- ies protection vessel also partially withdrew in a move the Philippines said it hoped would ease tensions. “We have been conducting diplo- matic consultations with China and the result is the pullout,” said Phil- ippine Foreign Affairs Department spokesman Raul Hernandez. “It is part of the process of defusing ten- sion in the area.” The moves didn’t mark a full drawdown, however, as both coun- tries are keeping government ships in adjoining areas just outside the lagoon, leaving them ready to re-en- ter if tensions rise again. There are also some Chinese fishing vessels still in the area. The two countries have announced previous efforts to ratchet down tensions, only to see those efforts fail as the countries assert their claims to the resource- rich waters. A spokesman for China’s Foreign Ministry, Liu Weimin, said in a statement Tuesday that Chi- nese ”administrative” ships re- mained deployed near Scarborough Shoal, which China calls Huangyan Island and the Philippines calls Bajo de Masinloc. “Chinese fishing vessels in the lagoon are operating under normal conditions,” Mr. Liu added. “They are no longer receiving interfer- ence.” Scarborough Shoal is inside what the Philippines says is its exclusive economic waters under the United Nations definition, while China dis- putes any claim in the area by the Philippines. That has heightened ill feelings in the broader South China Sea, which already is the site of several competing sovereignty claims and which is believed to contain large reserves of oil and natural gas be- neath the seabed. In addition, the South China Sea includes some of the world’s busiest shipping lanes and security issues in the area are a major source of con- cern for the U.S., which is now step- ping up its diplomatic and military engagement in East and Southeast Asia, drawing complaints from China. Mr. Aquino has said he would raise the issue in his meeting with U.S. President Barack Obama scheduled for Friday, and predicted that British Prime Minister David Cameron, whom he is set to meet Wednesday in London, is likely to inquire about the situation in the South China Sea. “It is a body of water where quite a substantial amount of world trade has to pass through. So it’s a matter of concern for everybody,” Mr. Aquino said. U.S. Secretary of State Hillary Clinton infuriated China in 2010 when she said Washington has an interest in ensuring that the South China Sea should remain open to navigation amid the continuing ter- ritorial disputes there. Since then, the U.S. has strength- ened ties with Mr. Aquino’s adminis- tration, which was elected in 2010. The U.S. recently handed over a sec- ond refitted coast-guard cutter to the Philippines to help bolster its meager defenses. The two governments also are discussing ways to enhance the U.S.’s military presence in the Phil- ippines, which numbers several hun- dred troops who rotate in and out of the country in order to help train and advise Philippine armed forces in their efforts to eliminate Islamist terrorists in the deep south of the country. The Philippines could emerge as a key part in the long-term U.S. se- curity strategy in Asia and the Pa- cific. U.S. Defense Secretary Leon Panetta said over the weekend in Singapore that the U.S. aims to sta- tion 60% of its naval fleet in Asia by 2020, up from about 50% now, re- flecting how the U.S. security con- cerns are shifting toward Asia after a decade focused on the Middle East and Afghanistan. Mr. Liu, the China Foreign Minis- try spokesman, Monday described Washington’s plans to scale up its military presence in the region as “untimely,” and said all parties should focus on maintaining peace and stability in the region. Mr. Aquino, who arrives in the U.S. late Wednesday, is also likely to discuss growing trade relationships and ways to step up investment in the Philippines during his visits to Britain and the U.S. Once one of Asia’s laggards, the Philippines is performing much more strongly af- ter Mr. Aquino launched a drive to tackle corruption and reduce waste from government spending. His initiative helped lead the country to a series of credit-rating upgrades in recent months, restor- ing investor confidence in the coun- try. In the first quarter of 2012, gross domestic product rose 6.4% on year compared with 4.9% growth in the 2011 period. BY JAMES HOOKWAY AND BRIAN SPEGELE Philippines President Aquino, seen in Manila in May, will visit the U.S. this week. Bl oo m be rg N ew s Australia CutsRate, CitingGlobalWoes SYDNEY—As signs of deteriorat- ing global growth increase, Austra- lia’s central bank cut interest rates a further 0.25 percentage point in a preemptive move to buttress its economy and spark activity at home. Economists said the Reserve Bank of Australia was better placed to meet any coming storm in the world economy as this month’s elec- tions in Greece—set to shape the immediate outlook for global mar- kets—approach. “The board judged that, with modest domestic growth and a weaker and more uncertain interna- tional environment, the outlook for inflation afforded scope for a more accommodative stance of monetary policy,” RBA Gov. Glenn Stevens said in a statement, adding that Europe “would remain a potential source of adverse shocks.” The rate cut lowers the RBA’s benchmark cash rate to 3.5%, still among the highest of any major economy. It continues a string of cuts announced since November, which had already totaled a full percentage point but had so far failed to spark a recovery in consumer spending. With its fortunes hitched in large part to Chinese demand for its coal and iron ore, Australia is feeling the sting of a slowdown in Asia’s largest economy, one that may deepen if events in Europe worsen. Data Tuesday showed that Aus- tralia in the first quarter posted its first quarterly trade deficit in two years, largely on the back of flag- ging coal exports and a drop in prices paid for its mineral exports. The A$3.06 billion ($2.97 billion) deficit compared with a surplus of A$2.25 billion in the previous quar- ter. Coal exports were down 10% in value, while metal ores were off 11%. The Australian dollar was vola- tile after the rate cut was an- nounced, but eventually settled to be little changed. The commodity-rich A$1.4 tril- lion economy continues to ride a surge in mining investment, but the 80% of the economy that isn’t re- source-related is flat, hurt by the el- evated Australian dollar and fears linked to the world economy. Con- sumers are focused on saving in- stead of spending, building nest eggs to their biggest in more than 20 years. Retail-sector profits are down while job cuts continue in ar- eas like manufacturing. “The announcement today from the Reserve Bank gives Australians confidence that the Reserve Bank has further room to move and of course a big part of that flexibility is the return of our bud