India Future Leadership Program Student Guide - Wall Street ...

STUDENT GUIDE 2011 – 2012INDIA FUTURE LEADERSHIP PROGRAM

Dear Student,On behalf of YES BANK, it is my pleasure to welcome you to The Wall Street Journal, Asia’s ‘India Future LeadershipProgram’.YES BANK has successfully completed 7 years of institutional excellence, and has fructified into a “full service”Commercial & Retail Bank that is well equipped to offer a wide range of products and services to corporate andRetail customers. YES BANK’s Version 2.0 which commenced from 1 st April, 2010 is clearly the most stimulatingphase in the lifecycle of YES BANK with a growth strategy that is fully defined till 31 st March, 2015. Our destinationvision is to build a robust bank comprising of 750 branches, 3000 ATMs, 12,000 employees, INR 125,000 Cr. Depositbase, INR 100,000 Cr. Loan book and a INR 150,000 Cr in Total Assets size by 2015.The YES-PROFESSIONAL ENTREPRENEURSHIP PROGRAM (Y-PEP) which is YES BANK’s flagship campushiring program aims at inducting best-in-class professionals from premier campuses, thereby creating an enduringbench strength of superlative talent to strengthen the Bank to meet the challenges of tomorrow. YES BANK aims tobuild a culture and environment that supports professional entrepreneurship and is built on the core philosophy ofcreating and sharing value. This is in accordance with our relentless pursuit to evolve our institutional character asthe “Professionals’ Bank of India”.YES BANK also strongly emphasizes on ‘Knowledge’ as one of our key differentiators, and facilitates severalspecific initiatives under the aegis of YES SCHOOL OF BANKING (YSB). In addition to institutionalizing Knowledgeinitiatives in the Bank, the YSB team further augments the Bank’s talent management and employer brandinginitiatives through the YES-UNIVERSITY & SCHOOL RELATIONS MANAGEMENT (USRM) program which playsa pivotal role in building the YES BANK brand as a ‘Preferred Employer of Choice’ amongst the Best EducationalInstitutions in India and abroad.Over the coming year, as part of the ‘Future Leadership Series’ YES BANK will be working closely with The WallStreet Journal, Asia and select campuses on a wide range of knowledge Initiatives aimed at benefiting the studentcommunity.We trust this program will be a valuable experience for you.Dr. RANA KAPOORFounder, Managing Director & CEO

Dear Future Leader,Welcome to The Wall Street Journal Asia’s India “Future Leadership Program” in partnershipwith YES BANK. As part of this exclusive initiative, you will receive a range of resources andopportunities aimed at better connecting you with the outside business world.As part of the initiative, you will receive an electronic copy of The Wall Street Journal Asiaeach business day and access to WSJ.com from now until June 30th, 2012. These resourcesbring the world to your fingertips and are in essence a ‘living text-book’ with up-to-date newsand intelligence on what decision-makers and businesses are doing around the globe. Likethousands of students and faculty members before you, you’ll find the Journal becomesessential reading; packed with analysis and information that benefits you in your classes, yourfuture career and your personal life.Your copy of The Wall Street Journal Asia is only the beginning. In addition to your own personalelectronic copy of The Wall Street Journal Asia, we will be working with YES BANK and selecteduniversities to host a series of lectures and seminars that bring the world of business into theclassroom.Our program website provides more information on this and other activities under the IndiaFuture Leadership Program, so I urge you to visit regularly at: www.wsj-asia.com/flp/IndiaThe Wall Street Journal Asia and YES BANK wish you a successful year and thank you for yourparticipation in this worthwhile initiative.Sincerely,Christine BrendlePublisher, The Wall Street Journal Asia

THE WALL STREET JOURNAL ASIACONTENT GUIDEASIAPOLITICS & Policy • BUSINESS & FINANCE • MANAGEMENT •WEEKEND JOURNAL ASIA • THE JOURNAL REPORT • WEALTH • CAREERS •PROPERTY • TECHNOLOGY • ASIA.WSJ.COM • WSJ. MAGAZINE •

“Information is plentiful in this digital age.Actionable knowledge isn’t.”— Almar LatourEditor-in-Chief, AsiaThe Wall Street Journal

ContentsIntroduction 2Front Page 3What’s News 4World News 5Recurring Features 6Opinion: Review & Outlook 8In Depth 9Business & Finance 10Heard on The Street 12On Other Fronts 13Weekend Journal Asia 14WSJ. Magazine 16The Journal Report 17Digital 18Using the Journal in Your Major 20Global Knowledge. Asia Understanding. 22>1

IntroductionIn this digital age, there is no shortage of instant news, rumors andopinions – but the right information can be hard to come by.When you need news and analysis you can trust, The Wall Street JournalAsia will help you navigate your day like no one else.Whether it’s the global financial crisis, the economic transformation ofChina and India, breakthroughs in the tech world, or political battles inWashington, D.C., you can count on getting the real story and the bestcommentary any moment of the day – on your mobile device, your computerscreen, your e-reader, and on your doorstep.Our expert reporters and editors in every corner of the world deliver a nonstopflow of hard news and in-depth features that put complex news eventshappening nearby and far away in perspective. Columns on business, themarkets, policy, and economics. Smart insights on management. Focusedcoverage of wealth, and how it is managed. A steady stream of tips on thebest food, drinks and travel spots in the region.Be it in business or in life outside the office, The Wall Street Journal Asia isyour guide in a rapidly changing world.Almar LatourEditor-in-Chief, AsiaThe Wall Street Journal2< The Wall Street Journal Asia | Content Guide

Front PageThe day’s most pressing news from around the world. Provocative and intelligent reporting that educates and enlivensthe debate from the timeliest economic and business coverage to international affairs from across the globe.The front cover of The Wall Street Journal Asia sets the agenda for Asia’s business elite.RD ON THE STREETFINANCIAL ANALYSIS & COMMENTARYdividesctationsngeo believerrency iseciate.eferences tostability ofrate, whilerency wouldwith interflowsandrrencies.statementsy shifts is aut the lanthways. AsTao Wangntral bank’sapital flowsle, point tofears about hot-money inflows,such as those China experiencedwhen it allowed a20% appreciation from 2005to 2008. That would be an argumentagainst allowing theyuan’s value to increase.More on the Chinese leadership’smind is the still-fragilestate of the global economicrecovery and theoutlook for exports. Exportsaren’t declining as fast as theywere earlier this year, butthey were still down 14% yearto-yearin October.Until China’s leaders seegenuine evidence that the exportsector has stabilized, it isunlikely that the yuan willstart rising again. Even then,at the earliest, it probablywouldn’t be until a meeting ofthe top leadership next Marchthat a consensus on exchangeratepolicy changes can bereached.As Mr. Obama noted Tuesday,a more market-orientedexchange-rate regime can beexpected in time. It’s worthremembering that in China,time often seems to pass moreslowly than elsewhere.—Andrew Peapleboard on container shipping linesNew ‘Sky boxes’THE WALL STREET JOURNAL. Wednesday, November 18, 2009MARKETSabove themasthead willdraw attentionres of comneOrientShippingare goingadwinds: Adepends onWesternsupply gluta weak reremaking anceling ordersand scrapping old ships,but the oversupply is substantial:11%% of the globalshipping fleet is idle, HSBCsays, compared with 3% typically,and outstanding ordersfor new ships, booked in theheady days of global trade,could increase capacity by asmuch as 40%.In other words, shippingrates will stay depressed,losses will mount, and theStalledHow many U.S. dollars oneyuan buys$0.150.140.130.12’05 ’06 ’07 ’08 ’09Sources: Thomson Reuters via WSJ MarketData Group; Reuters (photo)value of the companies’ assets—theships themselves—willcontinue to decline.Against this grimoutlook, Neptune Orient’sSingapore listed stock tradesat 1.2 times expected bookvalue, according to data providerStarmine. That’s abovean average valuation over thelast five years of closer to 0.9times book. Similarly overvaluedare the Hong Kong-listedto leading storiesinside.An employee checks dollar banknotes at a bank in Hefei.shares of CSCL, which currentlyfetch 1.3 times expectedbook.Analysts at Macquariethink a more appropriate valuationfor Neptune is 0.7times their forecast for book,pricing the stock some 25%below its current level.Stock buyers might beoverreacting to the recentrise in the Baltic Dry Index,which is near 2009 highs,WSJ.com/HeardOVERHEARDInvestors finally found aBair market they can love.Shares in East West Bancorpand Iberiabank havesoared since they boughtfailed banks from the FederalDeposit Insurance Corp.The regulator’s chief,Sheila Bair, hasn’t alwaysbeen seen as a friend to investors.However, East Westis up 63% since its Nov. 6FDIC deal, and Iberia jumped18% Monday following Friday’sdeal.One possible reason:Both involve the FDIC takingpotential losses.i i iHaving outtraded rivalsover the last year or so,John Paulson is after anothertrophy. Hartford FinancialServices Group hashim pitted against rival EddieLampert. While Mr. Paulson’shedge fund acquired2.75 million of the insurer’sshares in the third quarter,rival Lampert ditched thestag. Happy hunting.—overheard@wsj.comsays Paul Chan, Invesco’sHong Kong-based chief investmentofficer. The BDI reflectsrates for shipments ofcommodities like coal andiron ore, not the finishedproducts hauled in containerships.Those who think they stillhave good reasons to buycould be taking a swim soon.—Alex Frangos andMohammed HadiPublished with every Friday's edition of The Wall StreetJournal Asia, Weekend Journal Asia explores the best oftravel, fashion, film, dining, wines & spirits, art, sports andmore, all with a distinctly Asian flavor.Subscribe to The Wall Street Journal Asia today atwsj-asia.com/sub/34.Published by Dow Jones Publishing Company (Asia). Printed in Hong Kong by Superflag Advertising and Communication Limited. 8 Chun Ying Street, NT. Printed in Indonesia by PT Gramedia Printing Group, Jalan Palmerah Selatan 22-28, Jakarta 10270. Printed in Japan by Yomiuri Shimbun, 1-7-1, Otemachi, Chiyoda-ku, Tokyo 100-8055. Printed in Korea by JoongAng Ilbo. 7, Soonwha-Dong, Chung-Ku, Seoul 100-130. 1997 June 04 Registration no.: SeoulKA00020 (Daily Newspaper), Publisher/Editor/Printer: Song, Pil-Ho. Printed in Malaysia by KHL Printing Co.Sdn. Bhd. (ROC No: 235060-A) Lot 10 & 12, Jalan Modal 23/2, Seksyen 23 Kawasan Miel Phase 8, 40000 Shah Alam, Selangor, Malaysia. Printed in Philippines by FEP Printing Corporation, 3817 Mascardo St., Corner Metropolitan Ave., Pasong Tamo, Makati City. Printed in Singapore by KHL Printing Co. Pte Ltd., 57 Loyang Drive, Singapore 508968. Printed and distributed in Taiwan by The China Post, 8 Fu Shun Street, Taipei 104. Printed in Thailand by Nation Multimedia Group Public Co., Ltd., 1854 Bangna-Trad Road, (K.M. 4.5), Prakanong, Bangkok10260. Published and printed on behalf of the Wall Street Journal India Publishing Pvt Ltd, 517B World Trade Centre, Barakhamba Lane, New Delhi 110001 by Mr Suman Dubey at A-8 Sector 7, Gautam Budh Nagar, Noida -201301 and PLOT No.EL208, TTC Industrial Area, Mahape, Navi Mumbai - 400710 (Maharashtra), India, Editor: Suman Dubey, phone: +91-11-6462 0215. ACP no. F.2 (T/3) Press / 2009 FACSIMILE EDITION.Australia: A$6.00(Incl GST), Brunei: B$5.00, China: RMB25.00, Hong Kong: HK$18.00, India: Rs25.00, Indonesia: Rp18,000(Incl PPN), Japan: Yen500(Incl JCT), Korea: Won2,500,Malaysia: RM6.00, Pakistan: Rs80.00, Philippines: Peso80.00, Singapore: S$4.00(Incl GST), Sri Lanka: Slrs180(Incl VAT), Taiwan: NT$60.00, Thailand: Baht50.00, Vietnam: US$2.50KKDN PPS 648/11/2010 (028507) KKDN PP 9315/10/2010 (025811) MICA (P) NO. 048/10/2009 SK. MENPEN R.I. NO: 01/SK/MENPEN/SCJJ/1998 TGL. 4 SEPT 1998As of 11 a.m. ET DJIA 10384.82 g 0.21% FTSE 100 5345.93 g 0.68% Nikkei 225 9729.93 g 0.63% Shanghai Comp. 3282.89 À 0.24% Hang Seng 22914.15 g 0.13% Sensex 17050.65 À 0.11% S&P/ASX 200 4729.40 g 0.54%No changein currencyis offeredBy Andrew BatsonBEIJING—A growing numberof global leaders are urgingChina to look to its longterminterests and allow itstightly controlled currencyto rise. But they are encounteringreluctance from a governmentstill very much worriedabout the economy inthe short term.U.S. President BarackObama and DominiqueStrauss-Kahn, managing directorof the InternationalMonetary Fund, in Beijing onseparate visits Tuesday, toldChinese officials that yieldingto market pressures for astronger yuan would help theglobal economy recover.Nonetheless, Chinese PresidentHu Jintao didn’t announceany new commitmenton currency policy to Mr.Obama, and other Chinese officialsand economists continueto defend China’s policyof keeping the yuan steadyagainst the dollar.The discussions highlighthow China’s heavily managedcurrency is once again at thecenter of debates over globaleconomic policy, after beingpushed to the background forBy Spencer SwartzLONDON—Energy forecastersincreasingly predictslowing growth in global oildemand in the years ahead,but some OPEC nations areheading in the opposite directionand ramping up their capacityto pump oil.Qatar, for example, is setto raise its oil-production capacityearly next year from anexisting field known as Al Shaheen.The more than $6 billionexpansion project brightensthe revenue prospects ofthe Mideast state but highlightsa bigger problem brewingfor its partners in the Organizationof Petroleum ExportingCountries.After keeping a tighttether on supply in recentyears by cautiously investing,the 12-nation cartel finds it-Macau casinos try to win at anew game: family entertainment.MARKETING 16a while by the financial crisis.Though Mr. Hu, Mr. Obamaand other world leaders havepromised to cooperate in pullingthe world economy out ofits deepest slump in a generation,coordinating economicself battling an untimely convergenceof lackluster consumptionthat magnifies itsown rising supply capacity—which may in turn reignite oldbattles between membersover market share and ultimatelypush oil prices lower.OPECoutputcapacityisexpectedtoincreasearound onemillion barrels a day in 2010asprojectsenterserviceinAngola,Iraq, Qatar and SaudiArabia, according to Bill Farren-Price,energy director atMedley Global Advisors.“Significant challengesface OPEC next year,” Mr. Farren-Pricesays.“Itwillstruggleto integrate a wave of newOPECproductioncapacitythatvastly exceeds world demandfor its crude.” Many of theprojects started developmentwell before the recession.Projects like Al Shaheenpolicies across very differentcountries remains no easytask. High unemploymentmakes trade with China a volatilepolitical issue in theU.S.—but similar pressuresalso make it difficult forCrude-oil futuresDaily settlement price on thecontinuous front-monthcontract11 a.m. in NY: $78.70 a barrel,down 20 cents$908070605040302009Source: Thomson Reuters via WSJMarket Data GroupASIAChina to yield to U.S. pressureon the currency.A stronger yuan, whichwould make Chinese exportsless competitive, is particularlyunappealing for Chinain a year when exports areAustralia’s executive-payplan strikes out.EDITORIAL & OPINION 17VO L . X X X I V N O. 5 7 (India facsimile VOL. 1 NO. 118) We d n e s d a y, N ove m b e r 1 8 , 2 0 0 9China faces pressure to lift yuanU.S. President Barack Obama inspects an honor guard with Chinese President Hu Jintao at the Great Hall of the People on Tuesday.Depreciating 130125Real effective exchange120rate of the Chinese yuan,115year 2005=100110Source: Bank for International 105Settlements2007 2008 2009OPEC ramps up pumping abilitydown about 20% and manymanufacturers have closed.And Chinese leaders whohave criticized the West’sPlease turn to page 24n Heard on the Street ...............40may swell OPEC’s nominalspare production capacity, ameasure of its overall capabilityto bring barrels to consum-Advice that deliversopportunity.ers, to roughly 7.5 million barrelsa day. That would will Best Investment Bank *leave OPEC capacity up about15% from 2008 at almost a10-year high, depending onhow much oil the group is actuallyproducing.Operated by Denmark’sAP Moller-Maersk, the offshoreAl Shaheen fieldstarted producing crude inthe early 1990s and could almostdouble in capacity toover 500,000 barrels a day,says Qatar oil minister AbdullahBin Hamad Al-Attiyah.“The expansion is comingalong as expected,” he said,dismissing concern about depresseddemand.Mr. Al-Attiyah and otherOPEC officials say China, IndiaandotherpartsofAsiawillA Passion to Perform.remain OPEC’s fastest-growingmarkets. OPEC exports to * The Asset Awards 2008.Please turn to page 8asia.WSJ.comObama, Huset outlineof interestsBy Jonathan WeismanAnd Ian JohnsonBEIJING—U.S. PresidentBarack Obama secured a farrangingframework for cooperationwith China on Tuesday—onethat paradoxicallywas announced as frictions appearedto increase over humanrights and economic policy.For Mr. Obama, the visit’sresults were mixed. Aides sayhe views China as the U.S.’smost vital partner in tacklingthe globe’s most intractable issues.The U.S. and China consumemore energy and emitmore greenhouse gases thanany other countries. China’sposition on the United NationsSecurity Council and locationon the border withNorth Korea make it indispensableto resolving nuclearstandoffs in Iran and on theKorean peninsula. And China’sstatus as Washington’sbiggest creditor and theworld’s engine of economic recoveryhas linked the two nations’economies inextricably.With so much at stake,Sino-U.S. relations have neverbeen closer or more important,Please turn to page 24The new look frontpage is a confidentdisplay of the mostimportant storiesof the day, oftenexclusive andalways deliveredwith balanced,insightful, intelligentand unparalleledreporting.>3

VolumeChangeStock in millions Close Net %VolumeChangeStock in millions Close Net %VolumeChangeStock in millions Close Net %StockWhat’s NewsProvides an at-a-glance view of the day’s paper and helps you quickly identify the news that is most importantto you.What’s News:Encapsulatedstories of the newsthroughout theedition.2 THE WALL STREET JOURNAL. Tuesday, February 9, 2010i i iBusiness & Financen Kirin and Suntory ended theirmerger talks after the beveragefirms couldn’t overcome differencesover who would own andmanage the future company. Theannouncement marked a setbackfor consolidation in Japan andsent share prices down across theindustry. 17, 30n A new filing by China InvestmentCorp. on its stakes inU.S.-listed companies sheds lighton the $300 billion sovereignwealthfund’s investment practicesbut includes relatively few largeholdings in the U.S. 17, 30n CIT Group is naming formerMerrill Lynch chief John Thain aschairman and CEO, uniting twoprominent casualties of the creditcrisis. 22n U.S. stocks wavered as consumerplays rose but financialstocks fell. Greek shares declinedfor a fourth straight session, andthe Nikkei 225 finished below10000 as concerns about eurozonedebt ricocheted. 25n Huatai Securities aims to raiseas much as $2.53 billion from itsIPO, making it the largest offeringin China this year, but analystssaid the brokerage may be off themark in its pricing. 22n China Construction Bank set alower loan quota for 2010, in anothersign Chinese lenders are adjustinglending in response to regulatorypressure. 22n Goldman Sachs’s No. 2 investmentbanker in Japan, KevinQuinn, is moving back to the U.S.,the latest high-level departurefrom a foreign bank in Japan. 24n Xstrata said it will resume dividendpayments, though 2009profit fell 82%. 18n Mongolia’s prime ministerwants to keep ownership of a keycoal asset in government hands,potentially restricting access byWestern mining companies. 19Most read in Asia1. Opinion Asia: Hong Kong andFalun Gong2. Toyota to Act on Prius3. A Crisis Made in Japan4. Australia to Withdraw BankDeposit Guarantee5. China’s Export Focus BreedsBacklashMost emailed in Asia1. A Crisis Made in Japan2. The Foot Behind Jimmy Choo3. Canada Fears Housing Bubble4. China’s Export Focus BreedsBacklash5. Protecting Yourself From theDeficitBloomberg NewsReal Time Economicsblogs.wsj.com/economicsAccording to a recentstudy, the dollarremains the world’stop currency by along shot whenmeasured in anumber of differentways.ONLINE TODAYPAGE TWOWhat’s News—Continuing coverageCheck out the imagesbehind stories makingnews world-wide atwsj.com/photosMongolian Prime Minister Batbold Sukhbaatar speaks at the MongoliaEconomic Forum in Ulan Bator on Monday.n Japan’s current-account surpluswidened in December, helped 75.8% in January, the biggest in-n Taiwan said exports grewby greater demand for Japan’s exportsfrom China and other Asian powered by a recovery in demandcrease in more than 33 years,nations, though the upturn was from all its major export markets.smaller than expected. 5n Audi reported its January salesn India’s economy is expected to rose 39% to 77,800 cars, as thegrow 7.2% in the year through VW premium brand benefitedMarch, the government estimated, from strength in China. 21as a surge in manufacturing and arebound in services blunt the impactof a drop in farm output. 5 emerging economies and then Pimco’s CEO said bonds fromGermangovernment are the most attractivesovereign-debt securitiesin the world. 22n IBM unveiled new processors,adding to competition in the marketfor mid-range servers. 21i i iWorld-Widen Yanukovych won Ukraine’spresidential election, near-completereturns showed, but the oppositionleader’s opponent, PrimeMinister Tymoshenko, showed nosign of conceding defeat. 7n China heralded a major bust ofcomputer hackers, with state mediasaying officials had shut whatthey called the country’s largestdistributor of tools used in maliciousInternet attacks. 3n Sri Lanka arrested formerarmy commander and losing presidentialcandidate Gen. SarathFonseka at his office for what thearmy said were military offenses.n Afghan authorities said theyarrested a district administratorwho was allegedly feeding informationto the Taliban on movementsof Afghan and coalitionforces in the north. 6n Pakistani authorities said theyarrested six suspected Talibanmilitants allegedly on their way toattack a five-star hotel and killAmericans in Lahore.n Gunmen attacked a vehicle carryinga former Pakistani governmentminister in Rawalpindi, killingat least two of his aides.n An avalanche in Indian-controlledKashmir killed 17 Indiansoldiers and injured 17 othersnear a popular ski resort.n Australia announced policychanges intended to attract morehighly skilled workers.n Dubai’s Emaar Properties saidthe observation deck of theworld’s tallest tower has beentemporarily closed for maintenancejust weeks after opening.Digitsblogs.wsj.com/digitsThe Twitter “FailWhale” appearedduring the finalmoments of theSuper Bowl, asviewers apparentlycrashed Twitter withtoo many tweets.InsideWorld News: Chinaprepares to rebuildCCTV tower. 4Technology: Chipcompanies hope for alift from the iPad. 8Business & Finance:Australian billionairegambles on China. 18Markets: Germany’spurchase of bank datairks Switzerland. 29THE WALL STREET JOURNAL ASIADow Jones Publishing Company (Asia)25/F, Central Plaza, 18 Harbour Road, Hong KongTel 852-2573 7121 Fax 852-2834 5291www.wsj-asia.comSUBSCRIPTIONS and Address Changes, pleasetelephone our local customer service hotline, HongKong/Taiwan: 852-2831 2555; Beijing: 86-10 6581 4090;Shanghai: 86-21 5836 8228; Indonesia: 62-21 344 1101;Japan: 81-3 6269-2760; Korea: 82-2 756 1695; Malaysia:60-3 2026 4061; Philippines: 63-2 848 5873; Singapore:65-6415 4000; Thailand: 66-2 652 0871. Or email:service@wsj-asia.comADVERTISING SALES worldwide through Dow JonesInternational. Hong Kong: 852-2831 2504; Singapore:65-6415 4300; Tokyo: 81-3 6269-2701; Frankfurt: 49 6929725390; London: 44 207 842 9600; Paris: 33 1 40 1717 01; New York: 1-212 659 2176. Or email:wsja.publisher@dowjones.comTrademarks appearing herein are used under license fromDow Jones & Company. USPS 337-350ISSN 0377-9920Tuesday, February 9, 2010Moving themarketsAt right, Japan’s benchmark stock index andthe biggest movers among the larger Asianstocks indexes and stocks Monday. Beloweach index are its most actively traded stocks.The charts show the percentage change ineach index’s or stock’s value, rather than thepoint change, for purposes of comparison. Theindex level or stock price is indicated on eachaxis. All indexes and stocks are shown in localcurrency terms.Asian stocks in thenewsWoodside PetroleumAustraliaA$42.33s 2.0% or A$0.81Shares tracked Friday’s rise in the price ofNymex crude oil.In Australian dollars7055402510F M A M J J A S O N D J20092010Price-to-earnings ratio 18Earnings per share, past four quarters 2.40Dividend yield 1.3PERCENTAGE CHANGEDaily 1 wk. 52 wksOil & Gas -0.7% -2.3% 39.5%Woodside Petroleum 2.0% 1.8% 33.3%Yamaha MotorJB Hi-FiJapan ¥1,198 Australiat 4.5% or ¥56The company said it is likely to post a deeperloss than expected for 2009.In yenWSJ.comFollow the marketsthroughout the day, withupdated stock quotes, newsand commentary atWSJ.com..Also, receive emails thatsummarize the day’s tradingin Europe and Asia.To sign up, go toWSJ.com/Email210016501200750300F M A M J J A S O N D J20092010Price-to-earnings rationoneEarnings per share, past four quarters -754.60Dividend yieldnonePERCENTAGE CHANGEDaily 1 wk. 52 wksAutomobiles & Parts -1.4% -1.6% 40.3%Yamaha Motor -4.5% -0.7% 40.9%INSIDE: A newfeature promotingsome Nikkeiof Stock Average the keyJapan 9951.82t 1.05% or 105.27elements The index ended below 10000 in for the first eachtime in nearly two months as concerns overEurope’s debt continued. Kirin slid 7.4% afterits merger talks with Suntory fell through.day’s paper. 15000The stock slid on news that the company’sCEO will retire.In Australian dollars282216104F M A M J J A S O N D J20092010Price-to-earnings ratio 18Earnings per share, past four quarters 1.03Dividend yield 1.7PERCENTAGE CHANGEDaily 1 wk. 52 wksRetail -0.8% -0.6% 33.8%JB Hi-Fi -5.1% -5.5% 107.3%THE WALL STREET JOURNAL.MARKETS LINEUPAsian index movers…125001000075005000F M A M J J A S O N D J20092010Mizuho Financial 126.00 173 1 0.58Hitachi 90.30 307 –8 –2.54Mtshbsh Fin Grp 64.91 455 –2 –0.44Toshiba 57.95 423 –7 –1.63Sanyo Elec 38.37 141 –2 –1.40KospiSouth Korea 1552.79t 0.91% or 14.33Foreign investors sold stocks amid concernsover the risk of sovereign default in Europe.Woori Finance skidded 5.1% on worriesabout Kumho Asiana’s debt restructuring.F M A M J J A S O N D2009Shares fell after UBS downgraded the stock toneutral and after the yen gained.In yenJ20102800220016001000400F M A M J J A S O N D J20092010Price-to-earnings rationoneEarnings per share, past four quarters -57.10Dividend yield 0.8PERCENTAGE CHANGEDaily 1 wk. 52 wksPersonal & Hshld Gds -1.2% -2.2% 34.0%Panasonic -5.3% -8.2% 17.7%Investors viewed the Kirin news as a setbackfor consolidation of Japan’s beverage sector.In yen2800220016001000400F M A M J J A S O N D J20092010Price-to-earnings ratio 15Earnings per share, past four quarters 107.50Dividend yield 1.3PERCENTAGE CHANGEDaily 1 wk. 52 wksFood & Beverage -1.4% -1.7% 40.4%Asahi Breweries -5.5% -7.5% 23.4%BeJapJapPanasonicAsahi Breweries KirA$19.07 Japan ¥1,318 Japan ¥1,654t 5.1% or A$1.03t 5.3% or ¥74t 5.5% or ¥972700225018001350900Korea Data Sys 65.59 320 –15 –4.48Samyang Optics 40.39 1,160 –125 –9.73Kwangmyung El 36.15 2,620 20 0.77Hansol Homedeco 31.62 2,190 285 14.96Baemyung Metal 17.59 1,360 –90 –6.21Hang SengHong Kong 19550.89t 0.58% or 114.19Cnooc fell 1.7% and PetroChina slipped 1.8%on weak crude-oil prices. Market volume declinedas investors turned cautious ahead ofthe Lunar New Year holiday.F M A M J J A S O N D2009J2010270002250018000135009000Icbc 421.31 5.41 –0.10 –1.81Bank Of China 311.07 3.59 –0.05 –1.37CCB 259.97 5.77 –0.04 –0.69PetroChina 113.02 8.25 –0.15 –1.79ChinaPetroChem 100.32 5.75 –0.10 –1.71Your comprehensive resource for news and analysis on China, coveringthe hottest topics of the day in business, finance, law, policy,economics and culture.In English at asia.WSJ.com/chinarealtimeIn Chinese at cn.WSJ.com/chinarealtimeJoin the conversation today.StSinDBS’sboostOCBCthe sF M200GentiGoldeNobleSing TCoscoForestocIn yF M20PriceEarnDividRetaBeneTheoverlistinIn yeF M20PriceEarniDividFoodKirinONLINE TODAY: Signposts to the highlights onasia.WSJ.com; a guide to the most-read stories anda daily online poll, with topics ranging from seriouseconomics to the lighter side of life.4< The Wall Street Journal Asia | Content Guide

Security kept order as parents took children for medical tests at a hospital in Hefei, China, during the 2008 milk scandal.ReutersBy James T. AreddyA milk recall in China evoked anearlier scare involving the chemicalmelamine that prompted authoritiesto revise food-safety laws andpledge more transparency.While the recall involved productsfrom only a single, relativelysmall Shanghai dairy, it was a reminderof continued attempts toprofit from selling contaminatedmilk and raised questions of how significantlythe industry has reformeditself following the 2008 scare, China’sworst-ever food-safety scandal.The producer involved in the latestrecall, Shanghai Panda DairyCo., was shut after its condensedand powdered milk were found tocontain excessive amounts ofmelamine. That substance, used illicitlyto fool quality-inspectiontesters because it can mimic theproperties of protein, was blamedfor killing six infants and sickening300,000 more in the 2008 milk-industryscandal that prompted globalworries about the quality of Chinesefood products.Shanghai Panda Dairy wasamong 22 companies implicated inthe 2008 scandal and was brieflyclosed then. But among the recentfindings, state media reported, wasthat the producer was sellingmelamine-tainted condensed milkthat had been recalled in 2008 andshould have been destroyed.The latest recall, extending toseven Chinese provinces, was reportedby state-run Xinhua newsagency late on New Year’s Eve andpublished in newspapers the followingday. Shanghai Panda Dairy wasshuttered and three of its top officialswere detained by police, accordingto the reports. An affiliatecompany that may have supplied ingredientsbased in the province ofNingxia is being investigated, the reportssaid.Also highlighted in the latestcase is how willing authorities areto raise alarm bells publicly once aproblem is found. So far, authoritieshaven’t made an official announcementexplaining the move or offeringadvice to consumers and retailers.While no products from ShanghaiPanda turned up in spot checksof several stores in Shanghai, severalretailers said they were unawareof problems with the brand.Telephone calls weren’t answeredat the company or at theShanghai Bureau of Quality andTechnical Supervision, the governmentagency that reportedly led theaction.Also unclear was when the inspectionswere made and howquickly the recall was launched afterward,as media reports said severalgovernment agencies were involvedin a widespread investigation.Separately, a company based in aprovince neighboring Shanghai thatproduces Panda-branded milk inearly December issued a statementthat it said was meant to distance itselffrom local media reports thatPanda milk had been found to containmelamine, saying that the reports involvedan unrelated company.Milk made by the company thatmade that statement, ZhejiangPanda Dairy Products Co., remainedon the shelves of Chinesestores in some places. A person answeringthe phone Sunday at its officessaid no one was available tocomment.A retailer selling Zhejiang Pandamilk in Jiangsu province said, “Ihave absolutely no idea aboutmelamine in Panda.”Once the discovery ofmelamine in milk became publicshortly after the end of the BeijingOlympics in 2008, the Chinese publicwas outraged. Courts laterhanded down death sentences tofarmers found guilty of addingmelamine to products, and jailedfor life the head of a north Chinadairy at the center of the scandal.The domestic and internationaloutcryover milkquality—followed byquestions about pet food, lead in toysand suspect drywall—helped promptChina’s legislature last March to passtougher food-safety laws establishingnationwidestandards,bettertestingsystems and a method to recallproblem products. The new law wentinto effect in June.China has taken significant stepsto improve the quality of its foodand last week’s dairy closure inShanghai may reflect a strengthenedinspection regime. Yet, lastweek’s problem isn’t the first involvingmelamine in milk in recentweeks. A dairy in Shaanxi provincewas closed after problems were detectedin early December. Separately,in recent weeks, at least oneofficial blamed for the scandal, China’sformer top quality supervisor,Li Changjiang, was appointed to anotherhigh-profile government positionas head of a nationwide antipornographyeffort.Demand for milk in China’s hasn’tsuffered in the wake of the earliermelamine scares, and more marginalplayers could now be trying to boosttheir output by adding melamineagain, saidChen Lianfang, seniorconsultantat Beijing Orient AgribusinessConsulting Co. He said China’sdairy industry has worked hard to restorea positive image in the pastyear and he therefore doubts theproblem is widespread, even if inspectionsnow get stepped up.If more producers are implicated,Mr. Chen said, “it will make abig impact on the whole food industry,not only on the dairy industry.”—Kersten Zhang and Bai Lincontributed to this artice.Shanghai Panda Dairy’s condensed andpowdered milk has been recalled.By Daisuke WakabayashiTOKYO—The Japanese governmentasked the state-backed DevelopmentBank of Japan to extendmore financial support to Japan AirlinesCorp., in Tokyo’s latest measureto assist the ailing carrier.The bank on its Web site Sundaysaid it will consider and decideon the request in order to cooperatewith the safe operation ofJapan Airlines.Local media reported that governmentministers, including DeputyPrime Minister Naoto Kan,asked the state-owned bank to doubleJAL’s existing credit line to200 billion yen, or about $2 billion.A JAL spokeswoman declinedto comment on the figure.JAL shares plummeted 24% to67 yen (72 cents) on Dec. 30, thelast trading day of 2009, followingreports that the carrier is studyingcourt-led bankruptcy protectioneven as it explores an out-ofcourtalternative under the auspicesof the government. The marketreopens on Monday.Increasing state-backed fundingfor JAL’s bailout may be a wayfor the government to get the airline’sprivate-sector lenders toagree to its plan for JAL. Thebanks are believed to be unhappyabout the possibility of the airlinefiling for bankruptcy protectionbecause that could force them towrite off more of their loans toJAL. The banks have declined tocomment.The airline also is trying to getretirees to bend on pension benefitsto ease its financial burden.Liquidation would force them toaccept reduced benefits. The retireesare in the process of voting onwhether to accept the proposal.In an interview published onSunday in the Asahi newspaper, JapanAirlines President HarukaNishimatsu said he believed JALcould restructure without needingto seek bankruptcy protection.JAL in November obtained acredit line of up to 100 billion yenfrom the Development Bank of Japanas part of the 125 billion yen itsays it needs for the rest of the fiscalyear ending March 31.JAL is considering competingovertures from U.S. carriers DeltaAir Lines Inc. and AMR Corp.’sAmerican Airlines to form a closealliance. Despite its problems, JALoffers the potential for greater accessto fast-growing Asian routes.It is currently a member of the oneworldairline alliance, which includesAmerican.By Evan RamstadNorth Korea underlined its desirefor a peace treaty with the U.S.and South Korea before giving up nuclearweapons in a New Year’s messagethat is awaited by analysts annuallybecause it is one of the rarestatements of direction from its authoritariangovernment.The statement broke little newground in the long-running disputebetween the North and countries,led by the U.S., that havetried to persuade it to give up itspursuit of nuclear weapons.In an editorial run in severalstate-run newspapers and broadcasts,the government said itwanted to “establish a lasting peacesystem on the Korean peninsulaand make it nuclear-free through dialogueand negotiations.”The sequence is considered importantbecause the U.S. wantsNorth Korea to stop building nuclearweapons before it will agreeto a peace treaty that would formallyend the Korean War.North Korea’s annual messageoften sends a signal about economicpriorities and has less oftenbeen used to discuss the nuclearweaponsdispute. In December,the U.S. envoy to North Korea,Stephen Bosworth, traveled toPyongyang to gauge its willingnessto return to aid-for-disarmamenttalks with the U.S., China, Japan,Russia and South Korea.North Korean diplomats acknowledgedthe need for talks but gaveno commitment to the so-calledsix-party process.The statement made generalreferences to economic improvement,such as encouraging greateroutput of light industry. North Koreahas been cut off from economictrade by numerous sanctions imposedby the United Nations as apenalty for its weapons pursuit.As a result, it suffers chronic shortagesof food and energy.As well, the North Korean governmentcracks down on privatemarketactivity, including restrictionson travel and information. Inthe past month, it re-possessed privatewealth by issuing new currencyand imposing sharp limitson how much old money could beexchanged for new.On Saturday, tens of thousandsof people in Pyongyang rallied tosupport North Korea’s policies forthe new year, the Associated Pressreported. It said the annual rally tosupport state policies for the yearinvolved about 100,000 people.Pyongyang pushes treaty, then disarmamentWORLD NEWS: ASIAChina reports new milk scareRecall from Shanghai dairy echoes 2008 scandal, spurs questions about new food-safety lawsBai Lin for The Wall Street JournalJapan seeksmore fundingto support JAL4 THE WALL STREET JOURNAL. Monday, January 4, 2010Dow Jones Industrial Average P/E: 18LAST: 10428.05 t 120.46, or 1.14%YEAR TO DATE: s 1,651.66, or 18.8%OVER 52 WEEKS s 1,651.66, or 18.8%*Price-to-earnings ratio for the Nasdaq 100 Note: Price-to-earnings ratios are for trailing 12 months Sources: WSJ Market Data Group; Birinyi Associates1100010500100009500900085002 9 16 23 30Oct.6 13 20 27Nov.4 11 18 24Dec.HighCloseLow50–daymoving averagetNasdaq Composite Index P/E: 49*LAST: 2269.15 t 22.13, or 0.97%YEAR TO DATE: s 692.12, or 43.9%OVER 52 WEEKS s 692.12, or 43.9%2300220021002000190018002 9 16 23 30Oct.6 13 20 27Nov.4 11 18 24Dec.S&P 500 Index P/E: 75LAST: 1115.10 t 11.32, or 1.00%YEAR TO DATE: s 211.85, or 23.5%OVER 52 WEEKS s 211.85, or 23.5%11501100105010009509002 9 16 23 30Oct.6 13 20 27Nov.4 11 18 24Dec.DJIA component stocksVolume,CHANGEStock Symbol in millions Latest Points PercentageAT&T T 12.00 $28.03 -0.29 -1.02%Alcoa AA 15.30 16.12 -0.18 -1.10AmExpress AXP 3.40 40.52 -0.28 -0.69BankAm BAC 84.20 15.06 -0.01 -0.07Boeing BA 1.80 54.13 -0.83 -1.51Caterpillar CAT 3.50 56.99 -1.06 -1.83Chevron CVX 3.20 76.99 -0.66 -0.85CiscoSys CSCO 19.90 23.94 -0.24 -0.99CocaCola KO 4.30 57.00 -0.68 -1.18Disney DIS 10.80 32.25 -0.03 -0.09DuPont DD 3.60 33.67 -0.38 -1.12ExxonMobil XOM 15.70 68.19 -0.58 -0.84GenElec GE 37.40 15.13 -0.22 -1.43HewlettPk HPQ 12.40 51.51 -1.42 -2.68HomeDpt HD 6.40 28.93 -0.20 -0.69Intel INTC 19.70 20.40 -0.19 -0.92IBM IBM 3.70 130.90 -1.67 -1.26JPMorgChas JPM 16.60 41.67 0.14 0.34JohnsJohns JNJ 5.40 64.41 -0.50 -0.77KftFoods KFT 4.30 27.18 -0.31 -1.13McDonalds MCD 3.60 62.44 -0.45 -0.72Merck MRK 5.50 36.54 -0.52 -1.40Microsoft MSFT 24.80 30.48 -0.48 -1.55Pfizer PFE 19.70 18.19 -0.31 -1.68ProctGamb PG 4.50 60.63 -0.74 -1.213M MMM 1.80 82.67 -1.23 -1.47TravelersCos TRV 1.80 49.86 -0.40 -0.80UnitedTech UTX 2.10 69.41 -1.08 -1.53Verizon VZ 6.00 33.13 -0.29 -0.87WalMart WMT 8.40 53.45 -0.85 -1.57U.S. stocks: most active...Volume,CHANGEStock Symbol in millions Latest Points PercentageCitigroup C 196.7 $3.31 –$0.01 –0.30%BankAm BAC 93.0 15.06 –0.01 –0.07SPDR S&P 500 SPY 85.0 111.44 –1.08 –0.96YRC Worldwide YRCW 71.6 0.84 –0.15 –15.17PwrShrs QQQ QQQQ 47.5 45.75 –0.42 –0.91GenElec GE 44.3 15.13 –0.22 –1.43iShrMSCIEmrgMkt EEM 35.1 41.50 0.14 0.34iShrRu2000 IWM 33.1 62.44 –0.75 –1.19SPDR FnclSelSct XLF 33.0 14.40 –0.03 –0.21FannieMae FNM 32.5 1.18 0.02 1.72SprintNextel S 30.9 3.66 –0.12 –3.17FordMotor F 30.5 10.00 0.01 0.10Microsoft MSFT 29.7 30.48 –0.48 –1.55WellsFargo WFC 28.7 26.99 0.17 0.63US NatGas UNG 27.4 10.08 –0.27 –2.61Biggest gainers...Quixote QUIX 3,270.3 $6.37 $3.42 115.93%IntelliChckM IDN 10,037.1 3.75 1.36 56.90PrimeRlty pfB PGEZ 53.5 5.68 1.53 36.87TongxinIntUt TXICU 4.2 14.57 3.59 32.64Optelcom NKF OPTC 225.3 2.81 0.54 23.82...Biggest losersPharmAthene PIP 2,737.1 $1.96 -$0.44 -18.34%PrfBkLA PFBC 412.3 1.80 -0.35 -16.28Entorian ENTN 32.9 5.53 -0.97 -14.92BluelinxHldgs BXC 42.2 2.77 -0.41 -12.89FdltySo LION 24.9 3.60 -0.49 -11.98ADRs of Asian companies*52-WEEK Volume, CHANGEHigh Low Stock Symbol in OOOs Latest Points Percentage$11.49 $6.36 Taiwan Semi TSM 7,104.9 $11.44 0.16 1.42%3.92 1.65 Utd Microelectronics UMC 3,528.0 3.88 0.13 3.4759.22 40.20 China Mobile CHL 1,723.0 46.45 0.61 1.3312.07 6.25 AU Optrncs AUO 1,707.7 11.99 0.08 0.676.84 3.71 Mitsu UFJ Fnl MTU 1,120.2 4.92 -0.04 -0.8115.95 8.56 China Unicom CHU 994.7 13.10 0.05 0.388.19 3.78 Siliconware Prec Ind SPIL 958.2 7.01 0.09 1.3078.75 33.09 BHP Billiton BHP 944.0 76.58 -0.37 -0.4830.82 15.64 Sony SNE 831.2 29.00 -0.30 -1.0215.29 6.85 Korea Elec Pwr KEP 761.1 14.54 -0.06 -0.4156.19 22.61 Infosys Tech INFY 675.0 55.27 -0.44 -0.7918.64 12.59 SK Telecom SKM 598.3 16.26 0.15 0.9334.52 20.28 Honda Motor HMC 554.4 33.90 -0.05 -0.1527.55 17.71 NTT NTT 435.3 19.74 -0.29 -1.459.50 3.96 Nomura Hldgs NMR 325.6 7.40 -0.06 -0.8081.00 37.43 China Life Ins LFC 280.0 73.35 0.07 0.1032.79 9.91 Aluminum Cp of China ACH 274.4 27.25 -0.15 -0.554.63 1.49 Adv Semi Engrg ASX 268.1 4.43 0.00 017.79 11.30 KT Corp KTC 255.5 16.82 0.16 0.964.00 1.50 SemiMfgInt SMI 241.6 3.24 -0.15 -4.4219.56 15.05 ChunghwaTel CHT 237.2 18.57 0.10 0.5419.93 13.11 NTT DoCoMo DCM 234.9 13.98 -0.14 -0.9987.67 56.79 Toyota Motor TM 212.9 84.16 -0.25 -0.3022.32 5.11 Yanzhou Coal Mining YZC 191.4 21.83 -0.08 -0.377.10 2.00 Alumina AWC 188.0 6.56 0.02 0.31135.92 63.94 PetroChina PTR 182.6 118.96 -0.46 -0.3956.41 31.92 ChinaTele CHA 173.9 41.42 0.03 0.07150.50 47.09 POSCO PKX 144.3 131.10 -0.37 -0.2834.43 21.60 Huaneng Power Intl HNP 140.2 22.42 0.06 0.279.82 5.43 Telecom Corp of NZ NZT 124.6 8.99 0.07 0.78*Most active American depositary receipts tracked by Dow JonesSource: WSJ Market Data GroupGlobal government bondsLatest, month-ago and year-ago yields and spreads over or under U.S. Treasurys on benchmark two-yearand 10-year government bonds around the world. Data as of 11 a.m. ETCountry/ SPREAD OVER TREASURYS, in basis points YIELDCoupon Maturity, in years Yield Latest Previous Month ago Year ago Previous Month ago Year ago5.750% Australia 2 4.405% 326.2 321.4 356.2 196.5 4.405% 4.241% 2.734%4.500 10 5.725 188.8 183.7 196.7 177.2 5.725 5.260 3.9965.000 Austria 2 1.766 62.3 58.7 24.2 133.9 1.778 0.921 2.1083.900 10 3.867 3.0 -0.1 21.0 164.7 3.887 3.503 3.8713.500 Belgium 2 1.160 1.7 -9.6 41.0 144.6 1.095 1.089 2.2154.000 10 3.717 -12.0 -17.2 27.5 157.1 3.716 3.568 3.7951.250 Canada 2 1.480 33.7 28.3 41.9 32.6 1.474 1.098 1.0953.750 10 3.607 -23.0 -23.6 -4.1 46.0 3.652 3.252 2.6844.000 Denmark 2 2.118 97.5 92.7 139.2 194.1 2.118 2.071 2.7104.000 10 3.678 -15.9 -21.0 23.1 114.6 3.678 3.524 3.3701.500 France 2 1.249 10.6 5.1 57.2 133.1 1.242 1.251 2.1003.750 10 3.610 -22.7 -28.4 13.0 ... 3.604 3.423 ...1.250 Germany 2 1.354 21.1 18.2 56.6 99.1 1.373 1.245 1.7603.250 10 3.388 -44.9 -49.0 -13.3 72.0 3.398 3.160 2.9440.550 Hong Kong 2 0.702 -44.1 -48.9 -31.8 -15.1 0.702 0.361 0.6182.160 10 2.779 -105.8 -110.9 -110.5 -98.5 2.779 2.188 1.2393.750 Italy 2 1.579 43.6 38.3 87.4 230.1 1.574 1.553 3.0704.250 10 4.139 30.2 24.9 74.2 216.1 4.137 4.035 4.3850.200 Japan 2 0.150 -99.3 -104.1 -47.6 -37.8 0.150 0.203 0.3911.300 10 1.291 -254.6 -259.7 -205.8 -105.6 1.291 1.235 1.1684.000 Netherlands 2 0.888 -25.5 -34.0 24.9 124.4 0.851 0.928 2.0134.000 10 3.565 -27.2 -33.2 11.6 132.4 3.556 3.409 3.5483.200 Portugal 2 1.297 15.4 18.6 56.5 181.1 1.377 1.244 2.5804.750 10 4.075 23.8 19.0 43.8 174.1 4.078 3.731 3.9655.350 Spain 2 1.634 49.1 41.2 69.0 159.2 1.603 1.369 2.3614.300 10 3.998 16.1 10.4 44.5 159.7 3.992 3.738 3.8212.750 Switzerland 2 0.648 -49.5 -54.3 -9.5 -16.2 0.648 0.584 0.6072.250 10 2.025 -181.2 -186.3 -143.2 -2.3 2.025 1.861 2.2013.250 U.K. 2 1.295 15.2 10.4 47.5 26.9 1.295 1.154 1.0384.500 10 4.010 17.3 12.4 25.2 79.3 4.012 3.545 3.0171.000 U.S. 2 1.143 ... ... ... ... 1.191 0.679 0.7693.375 10 3.837 ... ... ... ... 3.888 3.293 2.224Source: Thomson ReutersKey money ratesLatest52 wks agoPrime ratesU.S. 3.25% 3.25%Canada 2.25 3.50Japan 1.475 1.675Britain 0.50 2.00ECB 1.00 2.50Switzerland 0.54 2.02Australia 3.75 4.25Hong Kong 5.25 n.a.LiborOne month 0.23094% 0.43625%Three month 0.25063 1.42500Six month 0.42969 1.75000One year 0.98438 2.00375Latest52 wks agoEuro LiborOne month 0.41375% 2.58875%Three month 0.65500 2.89375Six month 0.97313 2.97750One year 1.21750 3.05875HiborOne month 0.08000 0.29929%Three month 0.13929 0.95071Six month 0.28929 1.45000One year 0.66929 1.84929Asian dollarsOne month 0.2427% 0.45%Three month 0.2610 1.4425Six month 0.4583 1.7900One year 1.0000 2.0175OfferBidEurodollarsOne month 0.3500% 0.2000%Three month 0.3300 0.2300Six month 0.4100 0.3100One year 0.6500 0.5500Latest52 wks agoU.S. discount 0.50% 0.50%Fed-funds target 0.25 0.25Call money 2.00 2.00Overnight repurchase ratesU.S. 0.10% 0.08%U.K. (BBA) 0.493 1.908Euro zone 0.32 2.17Sources: WSJ Market Data Group; ReutersU.S. Treasury yield curveThe curve shows the yield to maturity of current bills, notes and bonds; all data as of 2 p.m. ET.1month(s)3 6 1years2 3 5 710 30maturity5%43210sOne year agosThursdayTOTAL RETURNYield to Modified Month Quarter YearRyan Index maturity duration to-date to-date to-date 12-month30-year Treasury 4.634% 16.19 –6.62 % –8.08 % –25.53 % –25.53 %10-year Treasury 3.834 8.25 –4.84 –3.39 –9.34 –9.347 Year Treasury 3.386 6.21 –3.82 –1.59 ... ...Five-year Treasury 2.682 4.66 –2.71 –0.53 –0.55 –0.55Ryan Index 2.893 6.70 –3.36 –2.23 –6.53 –6.533 Year Treasury 1.680 2.89 –1.38 0.07 1.14 1.14Two-year Treasury 1.143 1.97 –0.73 0.19 1.32 1.321 Year Treasury 0.448 0.96 –0.10 0.20 0.95 0.95Six-month Treasury 0.193 0.50 0.01 0.07 0.64 0.64Ryan Cash Index-a 0.185 0.45 –0.02 0.09 0.53 0.53Three-month bill 0.061 0.25 0.03 0.07 0.38 0.38One-month bill 0.041 0.08 ... 0.02 0.14 0.14a-Performance of a cash investmentSource: Ryan ALMSCANNING THE GLOBEMonday, January 4, 2010 THE WALL STREET JOURNAL. 33Leading stories from our bureaus across the globe, providing the day’s top economic and political news.Regionally themed Asia, Europe, U.S. and World News pages will provide a digest of news from around the worldand offer analysis and insight on how they will impact business in the region.World NewsGerman Chancellor Angela Merkel addresses the Association of German Employers in Berlin Tuesday. She said the Germaneconomy wasn’t yet out of its trough and warned that protectionism posed the biggest problem for the world economy.By Marcus WalkerAnd Patrick McGroartyBERLIN—The euro-zone economy’spatchy recovery is continuingin the current quarter, according todata published Tuesday thatshowed more improvement in Germanbusiness confidence andFrench household spending.But French business confidencestagnated, and the uncertain outlookfor Germany next year isprompting Chancellor Angela Merkel’sgovernment to extend labormarketsubsidies that have kept a lidon rising unemployment.Germany’s Ifo index of businessconfidence, a closely watched leadingindicator for Europe’s biggesteconomy, rose sharply this month,reaching its highest level in morethan a year. The index stood at 93.9in November, up from 92.0 in October,as companies reported an improvingoutlook for exports.French consumer spending, animportant pillar of the euro-zoneeconomy, improved by more than expectedin October, with purchases ofgoods rising 1.1% from a month earlier.Clothing and household equipmentled the improvement, partiallyallaying fears that the recoverymight rest only on car sales pumpedup by short-lived subsidies.French industry sentiment wasunchanged in November, accordingto a separate French survey by nationalstatistics agency Insee. Companiessaid they expected their businessto stay subdued in comingmonths, Insee said.Germany’s government confirmedits earlier estimate of thirdquartereconomic growth, sayingthe country’s economy expanded by0.7%, thanks to businesses investingmore and cutting inventory moreslowly than before.Ms. Merkel’s cabinet is expectedto approve a proposal on Wednesdayto prolong government subsidiesfor so-called Kurzarbeit, orshort-shift work at companies sufferingfrom the recession. Underthe short-hours program, companiescan get aid to cover part of thecost of workers who have too littleto do, thanks to the plunge in globaldemand for German goods in thepast year. Business groups andeconomists say the policy hashelped companies minimize layoffsduring the recession.“We’re not yet out of thetrough,” Ms. Merkel told a businessconference in Berlin Tuesday. “It’snext to impossible to predict howthe international economic situationwill develop,” she said.The chancellor said she supportsher labor minister’s proposal, announcedover the weekend, to offershort-shift work subsidies for aslong as 18 months to companies thatapply for them next year.Currently, the program offerssubsidies for as long as two yearsfor companies that apply beforethe end of this year. Wednesday’sexpected decision “prolongs aproven measure,” said AlexanderKoch, an economist at UniCredit inMunich. “It makes sense to extendit because of the uncertainty abouthow strong and enduring the recoverywill be,” he said.German unemployment, at 8.1%of the labor force, is only half a percentagepoint higher than a yearago. However, German politiciansare worried that unemploymentcould worsen sharply in 2010, ascompanies cut back idle productioncapacity.Germany’s auto sector in particularcould suffer next year, economistssay, because the country’scash-for-clunkers incentives thatgave car sales a huge boost earlierthis year have ended.The overall picture in Europeanindustry is brightening. Euro-zonemanufacturers’ new orders rose1.5% in September from August,the sixth straight monthly rise, theEuropean Union’s statistics arm Eurostatsaid.Factory orders were 16.5% lowerthan in September 2008, showingthe gap that Europe’s industry stillhas to close to reach prerecession activitylevels.By Ira IosebashviliMOSCOW—Russia’scentralbank cut its key interest rates by 0.5percentage point Tuesday in an attemptto stimulate bank lending andturn back the wave of speculativecapital that has flooded the ruble inrecent months.“A reduction in the difference betweenforeign and domestic rateswill help contain the strengtheningruble,” the bank said in a statement.The reduction in the refinancingrate—the benchmark to which commercialbanks tie their depositrates—to a historic low of 9% is effectiveWednesday. Other key rates,such as the one-day repurchase rateon central-bank loans, were alsocut. Russia has cut rates by four percentagepoints since April.The ruble has strengthenedaround 27% against the dollar sincehitting its weakest level at 36.36 rublesin February, pushed higher byrising oil prices and a flood of speculativecapital seeking to take advantageof Russian interest rates, whichare several times higher than thosefound in Group of Seven countries.The expected rate cut failed toshift the ruble rate. The dollar washoldingsteadyat28.870rublesTuesday,well within its range of recentdays. Similarly, the euro was littlechanged at 43.152 rubles.Analysts say the latest cuts willdo little to keep market participantsaway from the ruble. “Interest ratesare high no matter how you slice it,”said Metropol brokerage firm’sMark Rubinstein. “The carry trade isstill going to attract investors.” In acarry trade, an investor borrows incurrencies that are expected to havelow interest rates over the mediumterm to buy currencies that are expectedto have higher interest rates.Thecentralbankhastriedtoheadoff the ruble’s appreciation by buyingmore than $16 billion of foreigncurrency in October andthefirsthalfof November and cutting the refinancingrate nine times since April.But the measures have done littleto stop the strength of the ruble,which has risen by around 10%against the dollar since September,leading the central bank to hint atother strategies, including limitingforeign borrowing by state-ownedcompanies and imposing a tax oncross-border currency transactions.The rate cuts have done equallylittle to stimulate bank lending,which ground to a halt as Russia washit with its first recession in a decade.Central-bank data show thatloans to corporations fell by 0.7% inSeptember from August, whileloans to consumers shrank by 1.1% inthe period.Euro zone maintains uneven recoveryMerkel to extend labor subsidies despite a sharp rise in German business confidence; French consumer spending growsReutersRussia lowers ratesto stimulate lendingAnalysts say thelatest cuts will dolittle to keep marketparticipants awayfrom the ruble.WORLD NEWS: EUROPEIn 1960, we created the first comprehensive stock marketdatabase, and transformed finance from a guild into ascience. Now we’re the academic home of Nielsen Homescandata, the foremost collection of product purchase information.So get ready for history to be made all over again—whichis exactly what you’d expect from the business school that’sa business force.50 YEARS AGO,WE REVOLUTIONIZEDFINANCE.NOW WE’RE ONTO MARKETING.CHICAGO LONDON SINGAPORE CHICAGOBOOTH.EDUWednesday, November 25, 2009 THE WALL STREET JOURNAL. 7contact: Carson Wong tel: +852 2831-6481; email: carson.wong@dowjones.com or Peter Jennings, tel: +44-20-7842-9674; email: peter.jennings@dowjones.comNAL INVESTMENT FUNDS [ Search by company, category or country at asia.WSJ.com/funds ]..NAV—%RETURN—FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YRNAV—%RETURN—FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YRNAV—%RETURN—FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YREmg Mkts Growth I GL EQ LUX 11/23 USD 37.50 70.1 96.1 -12.4Eur Growth A OT OT LUX 11/23 USD 10.33 23.9 29.2 -17.9Eur Growth A OT OT LUX 11/23 EUR 6.90 23.9 29.2 -17.9Eur Growth B OT OT LUX 11/23 EUR 6.21 22.7 28.0 -18.8Eur Growth B OT OT LUX 11/23 USD 9.29 22.7 28.0 -18.8Eur Growth C EU EQ LUX 11/23 EUR 5.23 23.3 28.5 -18.3Eur Growth I OT OT LUX 11/23 USD 11.26 24.7 30.3 -17.3Eur Growth I OT OT LUX 11/23 EUR 7.52 24.7 30.3 -17.3Eur Income A OT OT LUX 11/23 EUR 6.62 38.5 34.1 3.6Eur Income A OT OT LUX 11/23 USD 9.91 38.5 34.1 3.6Eur Income A2 OT OT LUX 11/23 EUR 12.81 39.1 34.1 3.6Eur Income A2 OT OT LUX 11/23 USD 19.17 39.1 34.1 3.6Eur Income AT EU BD LUX 11/23 EUR 6.63 39.1 34.1 3.6Eur Income B OT OT LUX 11/23 EUR 6.62 37.8 33.3 2.9Eur Income B OT OT LUX 11/23 USD 9.91 37.8 33.3 2.9Eur Income B2 OT OT LUX 11/23 EUR 11.93 38.2 33.3 2.9Eur Income B2 OT OT LUX 11/23 USD 17.86 38.2 33.3 2.9Eur Income BT EU BD LUX 11/23 EUR 6.63 38.3 33.2 2.9Eur Income C OT OT LUX 11/23 EUR 6.62 38.1 33.6 3.1Eur Income C OT OT LUX 11/23 USD 9.91 38.1 33.6 3.1Eur Income C2 OT OT LUX 11/23 EUR 12.78 38.6 33.5 3.1Eur Income C2 OT OT LUX 11/23 USD 19.13 38.6 33.5 3.1Eur Income I OT OT LUX 11/23 EUR 6.62 39.1 34.8 4.2Eur Income I OT OT LUX 11/23 USD 9.91 39.1 34.8 4.2Eur Strat Value A OT OT LUX 11/23 EUR 8.35 20.0 30.1 -21.7Eur Strat Value A OT OT LUX 11/23 USD 12.50 20.0 30.1 -21.7Eur Strat Value I OT OT LUX 11/23 EUR 8.54 20.8 31.2 -21.0Eur Strat Value I OT OT LUX 11/23 USD 12.78 20.8 31.2 -21.0Eur Value A OT OT LUX 11/23 USD 13.47 23.6 35.3 -18.8Eur Value A OT OT LUX 11/23 EUR 9.00 23.6 35.3 -18.8Eur Value B OT OT LUX 11/23 EUR 8.28 22.3 34.0 -19.6Eur Value B OT OT LUX 11/23 USD 12.39 22.3 34.0 -19.6Eur Value C OT OT LUX 11/23 USD 13.02 22.9 34.7 -19.2Eur Value C OT OT LUX 11/23 EUR 8.70 22.9 34.7 -19.2Eur Value I OT OT LUX 11/23 USD 15.54 24.3 36.4 -18.1Eur Value I OT OT LUX 11/23 EUR 10.38 24.3 36.4 -18.1Gl Balanced (Euro) A OT OT LUX 11/23 USD 16.91 19.2 28.4 -11.2Gl Balanced (Euro) B OT OT LUX 11/23 USD 16.49 18.1 27.1 -12.1Gl Balanced (Euro) C OT OT LUX 11/23 USD 16.78 18.9 28.0 -11.5Gl Balanced (Euro) I OT OT LUX 11/23 USD 17.21 NS NS NSGl Balanced A US BA LUX 11/23 USD 16.51 24.2 38.2 -10.2Gl Balanced B US BA LUX 11/23 USD 15.71 23.1 36.8 -11.1Gl Balanced C OT OT LUX 11/23 USD 16.27 23.9 37.8 -10.5Gl Balanced C OT OT LUX 11/23 EUR 10.87 23.9 37.8 -10.5Gl Balanced I US BA LUX 11/23 USD 17.11 25.0 39.2 -9.6Gl Bond A US BD LUX 11/23 USD 9.32 12.9 18.8 4.6Gl Bond A2 US BD LUX 11/23 USD 16.07 13.1 18.7 4.6Gl Bond A2 OT OT NA 11/23 HKD 124.54 13.1 18.7 4.6Gl Bond AT OT OT LUX 11/23 HKD 72.23 13.1 18.6 4.6Gl Bond AT US BD LUX 11/23 USD 9.32 13.1 18.6 4.6Gl Bond B US BD LUX 11/23 USD 9.32 11.9 17.6 3.5Gl Bond B2 US BD LUX 11/23 USD 14.09 12.1 17.5 3.5Gl Bond B2 OT OT NA 11/23 HKD 109.20 12.1 17.5 3.5Gl Bond BT OT OT LUX 11/23 HKD 72.46 12.0 17.4 3.5Gl Bond BT US BD LUX 11/23 USD 9.35 12.0 17.4 3.5Gl Bond C US BD LUX 11/23 USD 9.32 12.4 18.2 4.1Gl Bond C2 US BD LUX 11/23 USD 13.95 12.6 18.1 4.1Gl Bond I US BD LUX 11/23 USD 9.32 13.4 19.4 5.2Gl Conservative A US BA LUX 11/23 USD 14.99 16.3 24.3 -3.8Gl Conservative A2 US BA LUX 11/23 USD 16.96 16.3 24.3 -3.8Gl Conservative B US BA LUX 11/23 USD 14.96 15.3 23.2 -4.7Gl Conservative B2 US BA LUX 11/23 USD 16.13 15.3 23.1 -4.7Gl Conservative C US BA LUX 11/23 USD 14.97 15.9 23.8 -4.2Gl Conservative C2 US BA LUX 11/23 USD 16.60 15.9 23.9 -4.2Gl Conservative I US BA LUX 11/23 USD 15.06 17.2 25.4 -3.0Gl Eq Blend A GL EQ LUX 11/23 USD 11.66 30.4 51.6 -20.5Gl Eq Blend B GL EQ LUX 11/23 USD 10.96 29.4 50.3 -21.2Gl Eq Blend C GL EQ LUX 11/23 USD 11.46 29.9 51.0 -20.8Gl Eq Blend I GL EQ LUX 11/23 USD 12.29 31.4 52.9 -19.8Gl Growth A GL EQ LUX 11/23 USD 41.78 29.6 47.4 -21.2Gl Growth B GL EQ LUX 11/23 USD 34.92 28.4 45.9 -22.0Gl Growth C GL EQ LUX 11/23 USD 40.12 29.0 46.7 -21.6Gl Growth I GL EQ LUX 11/23 USD 46.36 30.5 48.6 -20.6Gl High Yield A US BD LUX 11/23 USD 4.26 55.9 68.1 3.7Gl High Yield A2 US BD LUX 11/23 USD 9.04 56.9 67.7 3.7Gl High Yield A2 OT OT NA 11/23 HKD 70.06 56.9 67.7 3.7Gl High Yield AT OT OT NA 11/23 HKD 32.86 57.2 67.9 3.7Gl High Yield AT US BD LUX 11/23 USD 4.24 57.2 67.9 3.7Gl High Yield B US BD LUX 11/23 USD 4.26 54.2 65.8 2.4Gl High Yield B2 US BD LUX 11/23 USD 14.55 55.6 66.3 2.7Gl High Yield B2 OT OT NA 11/23 HKD 112.76 55.6 66.3 2.7Gl High Yield BT OT OT NA 11/23 HKD 33.40 55.4 66.5 2.7Gl High Yield BT US BD LUX 11/23 USD 4.31 55.4 66.5 2.7Gl High Yield C US BD LUX 11/23 USD 4.26 55.1 67.1 3.2Gl High Yield C2 US BD LUX 11/23 USD 13.41 56.5 67.2 3.2Gl High Yield I US BD LUX 11/23 USD 4.26 56.8 69.3 4.4Gl Value A GL EQ LUX 11/23 USD 11.17 31.6 56.2 -19.7Gl Value B GL EQ LUX 11/23 USD 10.27 30.3 54.7 -20.6Gl Value C GL EQ LUX 11/23 USD 10.86 31.0 55.6 -20.1Gl Value I GL EQ LUX 11/23 USD 11.87 32.5 57.6 -19.1Greater China A AS EQ LUX 11/23 USD 40.16 56.6 79.3 -15.5Greater China B AS EQ LUX 11/23 USD 35.58 55.2 77.5 -16.4Greater China C AS EQ LUX 11/23 USD 39.68 56.0 78.5 -15.9India Growth A OT OT LUX 11/23 USD 124.51 NS NS NSIndia Growth AX OT OT LUX 11/23 USD 108.80 88.3 107.3 -7.2India Growth B OT OT LUX 11/23 USD 130.57 NS NS NSIndia Growth BX OT OT LUX 11/23 USD 93.10 86.7 105.3 -8.1India Growth I EA EQ LUX 11/23 USD 112.69 89.0 108.1 -6.9Int'l Health Care A OT EQ LUX 11/23 USD 133.68 13.8 28.8 -9.7Int'l Health Care B OT EQ LUX 11/23 USD 112.87 12.8 27.5 -10.6Int'l Health Care C OT EQ LUX 11/23 USD 128.17 13.4 28.2 -10.1Int'l Health Care I OT EQ LUX 11/23 USD 145.93 14.7 29.8 -9.0Int'l Technology A OT EQ LUX 11/23 USD 105.19 43.8 62.0 -12.6Int'l Technology B OT EQ LUX 11/23 USD 91.24 42.5 60.4 -13.4Int'l Technology C OT EQ LUX 11/23 USD 101.70 43.2 61.2 -13.0Int'l Technology I OT EQ LUX 11/23 USD 117.85 44.8 63.3 -11.9Japan Eq Blend A JP EQ LUX 11/23 JPY 5466.00 1.9 11.3 -25.7Japan Eq Blend B JP EQ LUX 11/23 JPY 5280.00 1.0 10.2 -26.5Japan Eq Blend C JP EQ LUX 11/23 JPY 5381.00 1.5 10.8 -26.1Japan Growth A JP EQ LUX 11/23 JPY 5394.00 -3.0 3.9 -26.1Japan Growth B JP EQ LUX 11/23 JPY 5210.00 -3.9 2.8 -26.8Japan Growth C JP EQ LUX 11/23 JPY 5310.00 -3.4 3.4 -26.4Japan Strat Value A JP EQ LUX 11/23 JPY 5522.00 7.1 19.0 -25.6Japan Strat Value B JP EQ LUX 11/23 JPY 5339.00 6.1 17.8 -26.4Japan Strat Value C JP EQ LUX 11/23 JPY 5432.00 6.6 18.4 -26.0Real Estate Sec. A OT EQ LUX 11/23 USD 13.98 31.0 68.8 -17.4Real Estate Sec. B OT EQ LUX 11/23 USD 12.80 29.9 67.3 -18.2Real Estate Sec. I OT EQ LUX 11/23 USD 15.02 32.0 70.3 -16.7Short Mat Dollar A US BD LUX 11/23 USD 7.22 10.3 11.5 -6.7Short Mat Dollar A2 US BD LUX 11/23 USD 9.69 10.6 11.4 -6.8Short Mat Dollar AT US BD LUX 11/23 USD 7.22 10.6 11.3 -6.8Short Mat Dollar B US BD LUX 11/23 USD 7.22 9.9 11.0 -7.2Short Mat Dollar B2 US BD LUX 11/23 USD 9.64 10.0 10.8 -7.3Short Mat Dollar BT OT OT LUX 11/23 USD 7.23 9.4 10.1 -7.5Short Mat Dollar C US BD LUX 11/23 USD 7.22 9.9 11.0 -7.2Short Mat Dollar C2 US BD LUX 11/23 USD 13.64 10.2 10.8 -7.2Short Mat Dollar I US BD LUX 11/23 USD 7.22 10.8 12.1 -6.2n ALLIANZ GLOBAL INVESTORS KAPITALANLAGEGESELLSCHAFTConcentra AE EU EQ DEU 11/23 EUR 50.36 29.6 50.8 -11.2Industria AE EU EQ DEU 11/23 EUR 69.58 33.0 41.5 -16.9InternRent AE EU BD DEU 11/23 EUR 34.91 2.8 -1.3 8.5n ALEXANDRA INVESTMENT MANAGEMENTTel: +1 212 301 1800 Fax: +1 212 301 1810OT OT VGB 10/30 USD 1642.69 69.6 71.6 NSn CREDIT PACIFIC ASSET MANAGMENTwww.creditpacific.comCPS-Master Priv Fund GL OT WSM 11/19 USD 118.73 18.7 18.3 9.7n PLATINUM CAPITAL MANAGEMENTTel: +44 207 024 9840, www.platinumfunds.netPlatinm-All Star OT OT CYM 09/30 USD 94.24 12.2 -6.9 -12.2Platinm-All Weather OT OT USA 10/31 USD 129.92 2.4 3.2 3.8Platinm-Dynasty OT OT USA 09/30 USD 108.96 6.0 3.6 -31.0Platinm-Emancipation OT OT USA 09/30 USD 96.83 29.4 0.4 -7.7Platinm-Equity Plus OT OT USA 05/29 USD 35.02 -18.2 -63.7 -45.6Platinm-Gbl Dividend OT OT CYM 09/30 USD 59.71 27.4 -18.1 -32.3Platinm-Nordic OT OT CYM 09/30 SEK 591.49 8.4 -6.2 -19.0Platinm-Premier OT OT CYM 12/31 USD 21.20 -55.9 -66.0 -44.3Platinm-Turnberry OT OT USA 09/30 USD 55.93 NS 8.3 -39.0n SUPERFUND ASSET MANAGEMENT GMBHFor info about open funds, contact info@superfund.com and www.superfund.com*Closed for New InvestmentsSuperfund Cayman* OT OT CYM 11/17 USD 48.56 -41.7 -36.9 5.5Superfund GCT USD* GL EQ LUX 11/17 USD 2508.00 -31.3 -29.0 4.8Superfund Green Gold A (SPC) OT OT CYM 11/17 USD 1108.42 -4.7 15.9 18.1Superfund Green Gold B (SPC) OT OT CYM 11/17 USD 1123.95 -16.6 2.5 16.7Superfund Q-AG* OT OT AUT 11/17 EUR 7118.00 -18.8 -16.4 7.2n WINTON CAPITAL MANAGEMENT LTDTel: +44 (0)20 7610 5350 Fax: +44 (0)20 7610 5301Winton Evolution EUR Cls H OT OT CYM 10/30 EUR 939.64 NS NS NSWinton Evolution GBP Cls G OT OT CYM 10/30 GBP 943.02 NS NS NSWinton Evolution USD Cls F OT OT CYM 10/30 USD 1189.62 -6.2 -1.5 3.1Winton Futures EUR Cls C OT OT VGB 10/30 EUR 192.39 -6.5 0.0 7.8Winton Futures GBP Cls D OT OT VGB 10/30 GBP 207.72 -6.4 0.6 8.9Winton Futures JPY Cls E OT OT VGB 10/30 JPY 13589.60 -7.9 -1.6 4.9Winton Futures USD Cls B OT OT VGB 10/30 USD 682.02 -7.0 -0.3 7.5NAV—%RETURN—FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YRNAV—%RETURN—FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YRAdvertisement[ALTERNATIVE INVESTMENT FUNDS www.WSJ.com] AdvertisementFUND SCORECARDHF Debt ArbitrageSeek out pricing discrepancy of private and public fixed income instruments. Funds tend to have low betaexposures to bond market indices. Ranked on % total return (dividends reinvested) in U.S. dollars for oneyear ending November 24, 2009Leading 10 PerformersFUND FUND LEGAL % Return in $US **RATING * NAME FUND MGM'T CO. CURR. BASE YTD 1-YR 2-YR 5-YR3 Finisterre Finisterre USA USDCayman Isl 44.13 51.97 13.11 9.54Sovereign Debt Master Fund3 Concordia Concordia Advisors USDBermuda 14.38 39.88 18.07 13.06G10 Fixed Income Arbitrage (Bermuda) Ltd.3 Sanctum Sanctum FI LLP USDCayman Isl 15.35 38.85 8.87 8.27Fixed Income3 Conservative Banca Zarattini EURBritish VI 20.07 30.85 7.31 7.49Wolf FundCO SA4 GC Managed Goldstein Capital USDUnited States 41.89 30.76 11.25 9.18Bond PortfolioCorporation4 Goldstein Goldstein Capital USDBritish VI 41.89 30.76 11.25 9.18Cap Mngd Bond Port Master Fund Corporation5 Aviva G7 Aviva Inv EURGuernsey 14.13 29.95 13.32 13.32Fixed Income Fund EUR Alternative Funds PCC LtdNS ADI Bond ADI - Alternative EURFrance 19.28 28.40 -2.11 NSAbsoluInvestments3 BlackRock BlackRock, Inc. USDCayman Isl 42.36 27.19 10.48 8.97Obsidian Offshore3 BlackRock BlackRock, Inc. USDCayman Isl 42.29 27.10 10.42 8.91Obsidian OnshoreNOTE: Changes in currency rates will affect performance and rankings.Source: Morningstar, LtdKEY: ** 2YR and 5YR performance is annualized1 Oliver’s Yard, 55-71 City RoadNA-not available due to incomplete data;London EC1Y 1HQ United KingdomNS-fund not in existence for entire periodwww.morningstar.co.uk; Email: mediaservice@morningstar.comPhone: +44 (0)203 107 0038; Fax: +44 (0)203 107 0001MARKETSLloyds pricesrights issue at60% discountLONDON—LloydsBankingGroup PLC priced the largest-everrights issue at 37 pence (61 U.S.cents) a share, a 60% discount fromMonday’s closing price.The U.K. bank said it will offer1.34 rights shares for every existingshare in an effort to raise £13.5 billion($22.4 billion). The rights offeris part of a plan announced lastmonth to raise £22.5 billion in freshcapital, as the bank tries to avoid anexpensive insurance plan that wouldhave seen the government increaseits stake in Lloyds to more than 60%from 43% currently. The bank alreadyhas raised £8.5 billion from adebt-conversion offer.Shares of Lloyds were up 2.3% at93.62 pence Tuesday afternoon inLondon.The rights-issue price was at a38.6% discount to the theoretical exrightsprice, or the calculated pricefor shares after issue of newstock—near the bottom of the 38%to 42% range previously given.The offer, which will represent57% of Lloyds’s share capital oncecompleted, is subject to shareholderapproval on Thursday. The recorddate allowing holders to participatein the issue is at market closeThursday. Until then, those buyingshares will also be buying the rightsfor the new stock.The U.K. government said it willtake up its part in the issue, whichis fully underwritten.While Lloyds escapes an increasedgovernment stake, shareholdersare set to see their stock,which has lost more than threefourthsof its value since the financialcrisis started in 2007, becomefurther diluted with the rights issue.Nonetheless, analysts saidLloyds’s cash call will clear uncertaintiesover its capital position andits future.The deeply discounted offer,which was expected by the market,underscores how much Lloyds wantsto avoid the insurance planlaunched by the U.K. governmentthis year to help banks get out ofthe financial crisis.Lloyds has said that with thecapital raising, its Core Tier 1 capitalratio will rise to 8.6% from 6.3%.BY PATRICIA KOWSMANNs risek safetyed them to ensure their caposmeet the official requiretheend of the year. A Wallournal article Tuesday alsoat global banks face a “debthe” and are exposed toebt costs as short-term debtue.idday trade, the two-yeary was up 2/32 point to 1000.75%, and the 10-year note7/32 to 100 9/32 to yield. The 30-year bond was up101 19/32 to yield 4.2801%.were also bond-market, with a lower revision toP showing that the econecoverywasn’t as strong asbelieved.s easee possibility of the BOJ purmoreJGBs to help curbm interest rates,” one Tokyoes house trader said. “Suchtion could buttress demands, forcing yields down.”nce Minister Hirohisa Fujiiesday that deflation is priaconcern for monetary polcatinghis hope that the cennkwill take a more activetackling the problem.n will sell 2.6 trillion yenbillion) of two-year debt onday. The two-year yield roseercentage point to 0.245%.THE WALL STREET JOURNAL. Wednesday, November 25, 2009>5By Amy SchatzWASHINGTON—U.S.regulatorsare considering whether the federalgovernment should take greater controloftheInternet andaskconsumersto pay higher phone charges in orderto provideallAmericans with cheaperaccess to broadband Internet service.TheFederalCommunicationsCommissionWednesday was set to lay outthe case for expanding broadband Internetservice, outlining current obstaclesto making it widely available.The agency is considering whether toforce Internet providers to share theirnetworks with rivals and raise feescharged on consumer phone bills topay for the broader access.The proposals, which havesparked criticism from telecommunicationsand cable companies, representa reversal from the Bush Administration,when regulators cutback on government control of Internetand telephone service.The new commission, controlledby Democrats, is consideringwhether more government controlis needed to ensure competition andmore affordable Internet service.The FCC staff will float possiblesolutions in December and make formalrecommendations in February,when it is set to release its NationalBroadband Plan, a blueprint for improvingbroadband speed and access.Congress asked the FCC for theplan earlier this year.FCC officials estimate it couldcost anywhere from $20 billion to$350 billion to connect all Americanhouseholds to high-speed Internetservice, depending on speed offered.They haven’t yet said how muchof that investment might come fromtaxpayers.The agency is looking at three politicallycharged proposals to reachits goal of universal broadband access.One is to as much as double a $7billion federal phone-subsidy fund,called the Universal Service Fund,which subsidizes phone service inrural areas for low income Americans,and expand it to subsidize constructionand operation of broadbandnetworks in rural areas.Money for this fund comes from asmall charge tacked on to consumerphone bills.Previous efforts to overhaul thefund have run into significant resistanceinCongress, particularlyamongcongressmanandsenatorswhorepresentruralareaswherephonecooperativesand small phone companiesdon’t want to lose the federal subsidiesthey get to provide service.FCC staff also are studyingwhethertorevive“open access”rules,which would require Internet providersto lease their networks to rivals atgovernment-regulated rates.Similar rules are in place in Europeand some Asian countries—and some consumer advocates sayopen access is one reason why Internetservice is cheaper and faster inthose countries.FCC officials have made no decisionsyet on whether to adopt any ofthese proposals. The five-memberFCC board will be the final say andthey haven’t been presented withany options yet.Consumer groups say open-accessrules will spark competitionand lead to more choice and lower Internetprices.“It provides a way to bring morecompetition into the broadbandmarketplace which could drivedown prices for consumers,” saidJoel Kelsey, policy analyst at ConsumersUnion, publisher of ConsumerReports.The issue bubbled up last month,when Harvard University’s BerkmanCenter for Internet & Society releasedan FCC-commissioned studywhich concluded that other countrieshave faster and cheaper Internetaccess because of open-accessrules.On Monday, AT&T told the FCCthat the Harvard study’s conclusion,“that open access is the talisman forsuccess in broadband, is nothingshort of astonishing.”The Harvard study “seems to assumethroughout that we should applythe lessons of the past to the future,”wrote Link Hoewing, a Verizonassistant vice president for Internetissues, on the company’s policyblog. He argued it didn’t makesense for the FCC to look at applyingold rules, which were designed forthe traditional phone system, to thefast-evolving Internet. Verizon declinedto comment.The National Cable & TelecommunicationsAssociation said theFCC shouldn’t reach a “false andforegone conclusion” that suchrules would increase the availabilityof high-speed Internet service“when a clear preponderance of empiricalevidence reaches the polaropposite conclusion.”The FCC’s third option for broadeningInternet access, floated lastmonth, has already stirred controversy.The agency suggested that itmight reclaim some airwaves fromTV station owners and auction themoff to wireless companies for morehigh-speed wireless Internet services.Broadcasters, including PBSexecutives and station owners fromTexas and other states, have been upin arms, streaming into the FCC overthe past two weeks to lobby againstthe plan.“The political realities of this arehuge,” said Gordon Smith, a formerSenator from Oregon who recentlybecame head of the National Associationof Broadcasters on Tuesday.The FCC’s proposal has “a long wayto go,” he predicted.Highest broadbandspeed in the U.S.Proposed speedINTERNET SPEED megabits per second4020 60 80$20 billionCost to upgrade householdsSource: FCC estimates$35$50RANGE$350 billion100+Speed demonThe FCC estimates that the costs to upgrade broadband in U.S. householdsrises as Internet speeds increase.U.S. weighs fees for WebTighter government oversight possible in effort to promote wider accessWORLD NEWS: U.S.Thursday, November 19, 2009 THE WALL STREET JOURNAL. 11MARKETSAXA Asia-Pacific lays out a defenseTop executives say bid by AXA and AMP undervalues the firm’s exposure to fast-growing marketsSYDNEY—AXA Asia PacificHoldings Ltd. stepped up its defenseagainst the A$12 billion (US$11.17billion) joint takeover proposal fromFrench parent AXA SA and Australianwealth manager AMP Ltd.Meeting investors Wednesday inSydney, Chairman Rick Allert andChief Executive Andrew Penn detailedtheir argument that the cashand-sharesoffer undervalues thecompany, particularly its exposureto the rapidly growing Asian markets.”The history and breadth ofAXA’s Asian business, combined withthe nature of the markets, makes ita highly valuable strategic footprint,”AXA APH said in an investorpresentation.The only Australian financial-servicesfirm with the majority ofits business in Asia, AXA APH hasexposure to eight markets in the region,which account for two-thirdsof the company’s earnings.”We believe the presentation isdirected at the majority shareholderAXA SA to increase its offer for theAsia division before AXA APH considersentering into negotiations,”said Southern Cross analyst LafitaniSoti.However, AXA APH may need tospell out its requirements if it is toextract a better offer from its suitors,he said.A spokesman for AXA SA reiteratedthat the proposal is “fair andcompelling.” “It’s good they have finallycome out of the bunker and decidedthey need to engage shareholderson the matter,” he said. “Asmajor shareholders we know our operationsare good. We are disappointedthey won’t talk to us.”A spokeswoman for AMP declinedto comment.Paris-based AXA SA, which has a53% stake in the target, and AMPsaid on Nov. 9 that they were teamingup in a bid that valued the groupat A$5.34 a share based on the previoustrading day’s closing shareprices. The offer was rejected by theindependent directors of AXA APH,who said it wasn’t in the interests ofminority shareholders.AMP shares have risen since theoffer was made, making the offermore valuable at around A$5.79share. AXA APH shares rose 1.4% toA$5.92 Wednesday in Sydney.AXA APH said Wednesday it hassignificant excess capital, with morethan A$1.6 billion in assets aboveregulatory requirements, and theability to fund organic growththrough internally generated earnings.With a large position in HongKong, AXA APH said it is “set to capitalizeon achieving scale in SouthEast Asia” and has “valuable strategicoptions” in China and India.Under the complex proposal,which is conditional on board support,each minority shareholderwould receive 0.6896 AMP sharesand around A$1.38 cash for each oftheir shares. The cash component ofthe offer varies with movements inthe exchange rate between the U.S.and Australian dollar but will be atleast A$1.2071 per share.AMP would buy AXA APH, includingthe 53.9% owned by AXA SA, andkeep the Australian and New Zealandbusinesses. It would then sellthe Asian operations to AXA SA foraround A$7.73 billion.Hopes of an imminent higher offerfrom the bidders were dulled afterAMP Chief Executive Craig Dunnsaid the proposal has to make senseeconomically, and warned that AMPhas other growth options if the takeoverplan falls through.Fat Prophets analyst Colin Whiteheadsaid AMP’s buoyant share pricehas weakened Mr. Allert’s argumentfor rejecting the offer.”In light of which, AMP may feelthat it can bring AXA APH to the negotiatingtable without improvingthe terms of the bid,” Mr. Whiteheadsaid.BY REBECCA THURLOWSource: Thomson Reuters DatastreamAXA Asia PacificWednesday close: A$5.92, up 1.4%20092345A$6AXA APH said it hasthe ability to fundorganic growththrough earnings.Congratulation to Winnersof the Malaysia Property Industry’s most coveted Award –Malaysia Property Award TM 2009 on 16 November, 2009Official International Media Partner:Official Sponsor:By:THE INTERNATIONAL REAL ESTATEFEDERATIONPROPERTY CEO OF THE YEARShahril Ridza RidzuanGroup Managing Director, MRCBMASTER PLAN CATEGORYPuteri Harbour, Nusajaya, JohorOFFICE DEVELOPMENT CATEGORYMenara Hap Seng, Kuala LumpurPURPOSE-BUILT PROJECTSooka Sentral, Kuala Lumpur SentralRESIDENTIAL DEVELOPMENT (HIGH RISE)Park Seven, Kuala LumpurRESIDENTIAL DEVELOPMENT (LOW RISE)Adiva, Desa ParkCity, Kuala LumpurRETAIL DEVELOPMENTThe Curve, Mutiara Damansara, Selangor30 THE WALL STREET JOURNAL. Thursday, November 19, 2009Despite smiles and handshakes between EU and Chinese representatives at the Nanjing summit, little was accomplished.Agence France-Presse/Getty ImagesBy James T. AreddyNANJING, China—Chinese andEuropean Union leaders appearedto make little headway on currency,climate and market access in around of high-level talks that endedMonday in this eastern Chinese city.The two-day China-EU summitwasbilledasachanceforthetwomajortradingpartnerstotailorexitpoliciesfrom a year of global recession,aswellasanopportunitytorefinepositionsaheadoftheCopenhagenconferenceon climate change. Instead,thetwosidestradedbarbsoverthoseissues plus others such as developmentstrategies and human rights.EU officials pressed their argumentthat Beijing could loosen theyuan’s rigid exchange rate againstthe U.S. dollar to help rebalance theworld financial system.Addressing reporters after theirformal meetings Monday, ChinesePremier Wen Jiabao, flanked by hisEuropean counterparts, respondedto that call with a pointed assertionthat the 27-nation bloc maintainstrade policies to which China objects.“This is unfair,” Mr. Wen said.“Their measures are restricting China’sdevelopment.”Swedish Prime Minister FredrikReinfeldt, who is the current presidentof the European Council, the assemblyof EU leaders, acknowledgedBeijing’s pledge last week to reducethe growth in its carbon emissionsbetween now and 2020, but said itdoesn’t do enough to seal a globaldeal to keep the planet from warming.“We can’t solve the climate challengesfor mankind without Chinabeing part of the solution,” he said.In a speech later to a Sino-Europeanbusiness conference connectedto the summit, Mr. Wen highlightedwhat he called the “greatcost to the resources of the wholeworld” from 200 years of industrializednations’ development. He listedways China is not only supportingworld economic growth during itsown“difficultperiod,”butalsokeepingits eyes on emission output controls.Its investments in hydropowerand nuclear power, as well as the closureof dirty coal mines, he said, underscore“China’s sense of responsibilityto the Chinese nation and theentire human race.”The EU and China are amongeach other’s largest trading partners.Each also endorses a multipolarworld, preferring to address challengesin larger groups such as theGroup of 20 nations.Still, concrete action in Nanjingwas limited to technical agreementscovering areas such as constructioncodes and clean-energy research. Ajoint communiqué from the closeddoorsummit was light on specificsand signaled little sign of fresh momentumin the relationship.The yuan’s de facto peg to the dollarmeans it has depreciated significantlyagainst the euro in recentmonths, even though many economistssaythereshouldbeupwardpressureon the yuan. The euro’s strengthagainst the yuan has remained vexingto European politicians, who worrytheexchangeratelimitsbuyingpowerof the fast-growing Chinese economyat a time unemployment in EU marketsis high. The yuan gained morethan 20% against the dollar in thethree years after China formally depeggedthe two currencies inmid-2005, but that did little to addressexchange-rate issues with theeuro, andtheyuan’sdollarpeg waseffectivelyre-established in mid-2008.Mr. Wen reiterated that China“doesn’t seek a trade surplus that isbeyond a reasonable level.” Instead,he highlighted Europe’s barriers,like export limits on Europe’s highesttechnology, and called for hiscounterparts to “fully unleash the industrialadvantage of the EU.”The postsummit declarationdidn’t specifically mention currencydynamics. Instead, it said that to “effectivelyaddress the current economicand financial crisis, the twosidesagreedtostepupeffortstopromotetrade and investment and increaseeffective market access.”China-EU talks produce scant resultsBy Alison TudorJapan passed into law Monday aconditional moratorium on loan repaymentsby small businesses andhome owners, a move that opponentssay may lead to an increase inbad loans on the books of the country’sbanks.The bill, which has been in theworks since the Democratic Party ofJapan came to power in September,was passed by the upper house of Japan’sparliament on Monday, accordingto a spokesman at the FinancialServices Agency.The law is designed to encouragefinancial institutions to change theterms of loans when asked, thoughlenders aren’t required to do so. Opponentsbelieve it still could put publicpressure on banks to forgive payments,leading to more nonperformingloans on bank balance sheets.Small and medium-sized enterprises“account for just over 30% ofbank borrowings in the U.S. but almost70% in Japan,” said MasatoshiMoriyama, senior economist at MitsubishiUFJ Securities Co., in a recentreport. “Japanese banks are ina tougher position than U.S. banksbecause they are under pressure toallow SMEs to defer debt repaymentsat a time when capital adequacyregulations are becomingtighter. We believe this may be onereason why Japanese stocks lag behindother markets.”Supporters of the bill have arguedthat the measure would give individualsand small businessesbreathing room as Japan strugglesto reinvigorate its economy.The FSA is planning to alter its inspectionmanual to make sure bankerscarry out the spirit of the new law.The law may come into force by yearendand will expire on March 31, 2011,according to a statement by the FSA.The shift highlights the balancingact Japan’s new government istrying to strike. The DPJ is lookingfor ways to give breaks to companiesat home, which face a softeningdomestic economy and the prospectof deflation. But easier loan standardscould lead to a repeat of previousyears, when Japanese institutionswere saddled with bad loansmade during boom times.According to Japan’s FinancialServices Agency, the number of nonperformingloans among Japanesebanks rose 5.3% to 12 trillion yen($138 billion) in the fiscal year endedin March. Losses from disposing ofnonperforming loans totaled 3.1 trillionyen, nearly triple the 1.1 trillionyen from the previous fiscal year.The moratorium is the brain childofFinancialServicesMinisterShizukaKamei. At one point Mr. Kamei calledfor a mandatory three-year grace periodonloanrepaymentsbysmallbusiness.The move was intended to helpsmall and medium-size businesses aswell as people struggling to repaytheir mortgages.The idea drew opposition fromlenders worried that it could hit theheart of their business and lead tomore bad loans. Japanese bankingshares fell after Mr. Kamei begantalking about it. Mr. Kamei’s proposalhas since been watered down.Japan eases ruleson loan repaymentsWORLD NEWSWWW.BREITLING.COMCHRONOMATTuesday, December 1, 2009 THE WALL STREET JOURNAL. 3HEARD ON THE STREETEmail: heard@wsj.com FINANCIAL ANALYSIS & COMMENTARY WSJ.com/HeardThe shifting SandsSuperlatives are out. Notjust in Dubai.Sands China, the Macaucasinos of Las Vegas Sands,debuted to a dismal receptionMonday. Shares dropped 10%,while the broad market, andmost Macau-related, stocksjumped.It’s little wonder. The companymay own the VenetianMacao, the world’s biggest casino,and aspire to buildMacau’s answer to the Las VegasStrip on a patch of reclaimedland, but it is heavilyindebted and still borrowing.Much of the proceeds fromthe $2.5 billion initial publicoffering will go toward payingoff loans most urgently due,but Sands will still be leftwith some $3.1 billion in debt,Credit Suisse estimates.For a business that’s alreadyproved to be susceptibleto changing economic and policywinds from China, this isenough to make investorsthink twice.News from Dubai served asa timely reminder of howquickly things can unravel forcompanies depending on borrowedfunds.A particular concern comeswith the company’s plan todevelop the Cotai area. Sandswants to build five integratedresorts. It plans to spend $2.2billion toward completing thefirst two phases of this, $500million of which is comingfrom the IPO proceeds. Factorin the cost overruns and delaysthat are “quite famous inMacau” and more financingmay be in order, says CreditSuisse analyst Gabriel Chan.There has been good newsfrom Macau lately. Visitornumbers are recovering, andMoody’s thinks revenues couldclimb 10% to 15% in the yearahead. But gamblers returningto Macau are fueled by easycredit on the mainland—fromwhere most of the territory’svisitors hail—and this is susceptibleto tightening by Beijing.Already, a different kindof policy risk—visa restrictionsthat limit the number oftimes gamblers from themainland can visit Macau—has given investors somethingto worry about.Sands China was never aneasy sell. The listing fell shortof early hopes it would raise$3.5 billion, and priced at thebottom of its indicated range,with little of the over-the-topinterest that has characterizedsome Hong Kong listings.And that was before theimplosion of another glitzy,credit-fueled, biggest-in-theworldplayground for the rich.—Mohammed HadiRatings agenciesfind their voicesChina’sundrivenautomobilesAre the mice finally roaring?The credit crunch showedthat ratings firms missedhuge swaths of risk embeddedin the economy and securitiesmarkets. But, recently,Standard & Poor’s, Moody’sInvestors Service and FitchRatings have produced researchor made decisions thatexhibit an encouraging levelof independence.If the trend continues, ratingsfirms could become avaluable counterweight tocorporate management, WallStreet analysts—and evengovernment regulators.Take a recent S&P reportthat calculated the firm’s ownmeasure of capital levels atlarge banks. Using its own approach,S&P calculated riskadjustedcapital ratios thatwere substantially lower thanratios determined by officialregulatory approaches. This,of course, raises questionsabout the reliability of the officialmeasures. Granted, thewidely used Basel II capitalregime is being made stricter.But even after such changes,S&P’s approach could still betougher, the ratings firm estimates.Moody’s also caused a stirlast month with researchshowing that banks face ahigh level of debt coming dueover the next three years.And a separate Moody’s pieceon heightened credit distressat companies involved in private-equitytransactions drewire from the industry.Meanwhile, Fitch madefew friends, and perhaps lostrevenue, by recently decliningto rate repackaged securitizationsof Alt-A mortgages. Thefirm cited volatility in theamount of past-due loans.Will the ratings firms continuein this vein? That partlydepends on whether enoughindependent-minded peoplehave been drafted into toppositions. On that score,S&P’s hiring last year of MarkAdelson as chief credit officerhas likely added rigor to thefirm’s ratings, says JosephMason, a professor at LouisianaState University and afrequent critic of ratings-firmpractices.Welcome changes could beentrenched and extended if atough ratings-company billcurrently in Congress becomeslaw. The House Committeeon Financial Servicesapproved it at the end of October.Of course, in easy-moneytimes, investors will tend toignore skeptical research andfollow the latest Wall Streetpitch. But if the ratings firms’new-found rigor had been inplace in 2005, the credit bubblemay not have become asdangerous as it did.—Peter EavisWhen it comes to Chinesedata, even the most clear-cutstories aren’t as simple asthey seem.Auto sales are the latestfigures to draw a quizzicallook. There’s no doubt they’vebeen rising fast. The explanationseems straightforwardenough. At the beginning ofthe year, Beijing cut the salestax for some cars.Not so fast, cry those whohave noticed a kink in thestory. While auto demand hassurged, sales of gasoline arebroadly flat.The discrepancy hasspurred the conspiracy theoristsinto action. Their line islocal governments and stateownedenterprises have beenbuying cars to support localauto makers, without actuallyusing them.There are better ways toexplain the data difficulties.Small vehicles are 69% ofChina’s car sales this year, upfrom 64% last year. This isn’ta surprise, considering the carsales-tax cut applied to vehiclesrunning on 1.6-liter enginesor less. The authorities,meanwhile, raised the salestax on cars with 2.5-liter enginesor above.High gas costs also mightbe discouraging new car buyersfrom driving. As StandardChartered Research pointsout, gasoline is 20% more expensivein China than it wastwo years ago.To be sure, sometimes thecraziest theories about Chinaturn out to be true. There’sgood reason to believe thisisn’t one of those occasions.—Andrew PeaplePolicy riskVisitations to Macauby place of residence,Jan.-Oct. 2009Sources: Macau SARGovernment; AgenceFrance-Presse/GettyImages (photo)China50.3%Hong Kong31.5%Others6.3%Taiwan6.0%SE Asia5.9%Total:18.2millionFitch declined torate repackagedsecuritizationsofAlt-A loans.Your comprehensive resource for news and analysis on China, coveringthe hottest topics of the day in business, finance, law, policy,economics and culture.In English at asia.WSJ.com/chinarealtimeIn Chinese at cn.WSJ.com/chinarealtimeJoin the conversation today.34 THE WALL STREET JOURNAL. Tuesday, December 1, 2009

12 THE WALL STREET JOURNAL. Monday, February 1, 2010MANAGEMENTUntimely death is challenge for AstraIndonesian company mourns loss, but CEO’s legacy of shared teamwork provides ‘strong bench’ to move forwardFor some Indonesian companies,the sudden loss of the chiefexecutive officer would be a cripplingblow. Executive power ateven large firms is often concentratedin the hands of one dominantfigure and, as in some partsof Southeast Asia, there is only asmall pool of experienced seniormanagement able to quickly fill agap in the top ranks.PT Astra International, Indonesia’ssecond largest listed companyby market capitalization,must quickly come to terms withthe unexpected death on Jan. 20of Michael Ruslim, its presidentdirector,at age 56. Mr. Ruslim,who died after contracting denguefever, was widely consideredone of Indonesia’s most capablemanagers, and helped Astra navigateinternal, national and globalcrises, during a career thatspanned almost three decades.But some observers and outsidersare optimistic the diversifiedcompany—which has 130,000staff—will be able to cope, in partbecause of moves Mr. Ruslim tookto promote teamwork and developa wider management team. Astrahas “a strong bench” whose skillsMr. Ruslim worked hard to tap andenhance, says Manggi Habir, amember of PT Bank Danamon’sboard of commissioners who was acolleague of Mr Ruslim at CitibankJakarta about 30 years ago. Astra—foundedin 1957 by William Soeryadjayaand two brothers—startedlife as a tradingcompany and became Indonesia’sdominant auto-assembler afterpartnering with Toyota MotorCorp. in 1969. (Astra also has jointventures with Honda Motor Co.and other auto companies.)Today, the firm also has sizableagribusiness operations, particularlypalm oil, and is also ininfrastructure, information technologyand banking. For the firstnine months of 2009, it had salesof 70.65 trillion rupiah ($7.56 billion),a drop of 4.2% from theyear-earlier period. During 2009,when Indonesia’s main index rose87%, Astra’s share-price morethan tripled.Mr. Ruslim joined the firm’s financedepartment in 1983, fromCitibank Jakarta where he workedfor five years after getting an industrialdesign degree at the Universityof California-Berkeley andan M.B.A. at the University ofWisconsin. During his career, Astrahad an initial public offeringin 1990; underwent a dramaticchange of control by 1993 as theSoeryadjayas sold most of theirshares to deal with a crisis atfamily-owned PT Bank Summa;and took a big hit from then-PresidentSuharto’s disastrous “nationalcar” policy, in 1996, whichlet Kia cars imported by his sonbe far cheaper than the Toyotasthat Astra was assembling. Therewere more ownership changestoo, and for a time Mr. Suharto’sgolfing buddy, timber tycoon BobHasan, became Astra’s chairman.The Asian financial crisis,which began in 1997, crushed autosales—and in May 1998, after riotsin Jakarta, Mr. Suharto wasforced out of power. Astra, likemost sizable Indonesian companies,had to slash staff and renegotiateforeign debts. About 40%of the company ended up with theIndonesian Bank RestructuringAgency, which sold it in 2000 to aconsortium led by Cycle & CarriageLtd. of Singapore. (JardineCycle & Carriage, as the companyis now called, currently ownsmore than 50% of Astra.)Mr. Ruslim—who played a keyrole in negotiating with Astra’sbankers and working with the bignew shareholder—worked hard todevelop his staff, say some Indonesianbusinesspeople who knewhim. He “was able to cultivate astrong sense of bonding andshared teamwork in Astra thathas stood it in very good stead,”says Amol Titus, who heads amanagement consulting firm, IndonesiaWISE.“He pushed change, like rotatingpeople among businesses,”says Mr. Habir, Mr. Ruslim’s formerCitibank colleague. “Hewanted people to understand thewhole company. And there’s a lotmore unity now.” Among thecrowds at memorial services forMr. Ruslim were many Astra employees,from company drivers toexecutives.Astra has appointed PrijonoSugiarto, an employee since 1990and a director since 2001, as actingpresident-director. He wasbeen responsible for all of Astra’sautomotive businesses outside ofthose with Toyota.BY RICHARD BORSUKMichael Ruslim , whodied Jan. 20, was widelyconsidered one ofIndonesia’s most capablemanagers.PT Astra InternationalPhotos: Christie Johnston for The Wall Street Journal (Deripaska), Bloomberg News (Toyoda, Fyfe), Reuters (Gates), Bangkok Post via Agence France-Presse (Trakulhoon)The Power ListThe top business leaders in Asia making headlines last week in select global and regional media. Powered by Dow Jones Factiva and edited forrelevance and clarity.OLEG DERIPASKAChief ExecutiveUC RusalThe aluminum giant’s 42-year-oldcontrolling shareholder blamed itspost-IPO share decline in Hong Kongon weakness in global markets.BILL GATESChairmanMicrosoftChinese state-run media trumpetedcomments by Mr. Gates that playeddown China’s Internet restrictions,which were highlighted by GoogleInc.’s refusal to comply.AKIO TOYODAChief ExecutiveToyota MotorMr. Toyoda apologized to customersfollowing a massive recall and said thecompany was working to solve theproblem.KAN TRAKULHOONPresident, Chief ExecutiveSiam CementThe Thai company said it will takeeight to 12 months before it cancomply with regulations that willallow construction of its suspendedprojects at Map Ta Phut industrialestate to resume.ROB S. FYFEChief ExecutiveAir New ZealandThe carrier will offer beds in economyclass, but passengers need to buy threeseats to enjoy lie-down travel.Compiled by Carlos Tejada/ The Wall Street JournalMonday, February 1, 2010 THE WALL STREET JOURNAL. 25BUSINESS FINANCEMattel’s Barbiefuels rising netDoll’s sales aid an 86% gain in quarterBarbie is back, posting her biggestsales rise in years. Mattel Inc.’siconic doll and a big improvement inoverall profitability helped the largestU.S. toy maker generate an 86%increase in fourth-quarter earnings.Mattel executives on Friday expressedoptimism about the company’s2010 revenue prospects, citingstrong sales of such toys asBarbie’s townhouse, Matchbox andthe holiday sell-out Mind Flex game,as well as an improved lineup oftoys based on movies and televisionshows.Chairman and Chief ExecutiveRobert Eckert said, “2009 set thestage for what I’m confident will bea strong year for Mattel in 2010 andfor years to come.”Analysts said Mattel’s year-endinventories were in good shape,which could bode well for retailerrestocking trends in the first half ofthis year.The largest U.S. toy maker reporteda profit of $328.4 million, or89 cents a share, up from $176.4million, or 49 cents, a year earlier.The periods included tax benefits ofeight cents a share and 13 cents, respectively.Despite a 12% increase in Barbiesales, its overall sales were lackluster,with revenue climbing 1% to$1.96 billion. Sales fell 2% in theU.S., where Mr. Eckert said Mattellost “a little bit” of market share,mostly as a result of fewer toys tiedto entertainment than last year.Analysts polled by ThomsonReuters had most recently forecastearnings of 68 cents a share on$1.98 billion in revenue for the ElSegundo, Calif., company.While sales were below WallStreet forecasts, profitability waswell above expectations.Price increases earlier in theyear helped push gross profit to53.4% of sales from 46%. That’shigher than company’s often-citedlong-term target of 50%, WedbushMorgan analyst Chris White said ina note to clients. Operating marginrose more than four percentagepoints to 13.5%.Mattel executives said they expectincreased pressure from risingcommodity costs this year comparedto 2009, but the company ison track to generate $180 million to$200 million in annual savings fromits previously announced efforts tolower costs. And Mattel has raisedprices on some of its new items,though overall, it doesn’t expect bigprice increases for the year, executivessaid.“We will price our products consistentwith our goals of long-termoperating margin of 15% to 20%,”Mr. Eckert said.Toy makers all year worked tobring inventories in line with demandhurt by the global economicwoes. In October, Mr. Eckert saidthe company’s inventories and thoseat retailers were better-prepared forthe holiday season than they were ayear earlier.By year end, inventories weredown a whopping 27% from lastyear to their lowest level since yearend2002, White said.Sales of Mattel’s girls and boybrands unit, its biggest arm and theone that includes Barbie and HotWheels, jumped 4% from a year agoamid the strong Barbie sales and an11% increase in sales at its Wheelssegment, which includes HotWheels, Matchbox and Tyco R/C.Meanwhile, Mattel’s sales ofFisher-Price toys fell 3%, and itsAmerican Girl sales were flat.BY MARY ELLEN LLOYDSales of Barbie, above, rose 12% in the fourth quarter, helping Mattel’s profit to nearly double.Associated Presswww.ca-cib.comCalyon becomes...“It’s timefor achange ”Recurring FeaturesRecurring features on topics of greatest interest will keep you in the know on the latest developments impacting your finances, yourcareer and your life.6< The Wall Street Journal Asia | Content Guide–250255075100%Source: Thomson Reuters viaWSJ Market Data GroupAsia’s marketsPerformance of benchmark indexesChina’sShanghaiCompositeIndia’sSensexJapan’sNikkei2009By Suzanne VranicaAT&T Inc. is severing its tieswith Tiger Woods, joining a growinglist of marketers distancingthemselves from the golfer amidthe public furor surrounding allegationsof his infidelities.“We are ending our sponsorshipagreement with Tiger Woods andwish him well in the future,” said aspokesman for AT&T on Thursday.AT&T’s relationship with Mr.Woods began more than five yearsago when the telecommunicationscompany started sponsoring TigerJam, an annual star-studded concertthat is the biggest fund-raiserfor the Tiger Woods Foundation.That contract gave AT&T the rightto have Mr. Woods conduct golf clinicsfor its customers, according totwo people familiar with the matter.The phone giant further expandedits relationship with thegolfer in February to include havingits corporate logo—a blue andwhite sphere—appear on Mr.Woods’s golf bag. The companypicked up the coveted spot afterGeneral Motors Co. dropped thegolfer because of its financial problems.AT&T’s extended pact, accordingto two people familiar with thematter, gave AT&T the right to useMr. Woods in its ads. However,AT&T hasn’t done so.A spokesman for AT&T said thecompany wouldn’t comment on detailsof its endorsement contractnor elaborate on the reasons forparting ways with the golfer.On Friday, a spokesman for Mr.Woods declined to comment.AT&T’s decision to exclude Mr.Woods from ads has limited its public-relationsproblems, unlikeother brands such as Tag Heuerand Accenture PLC that relied onthe golfer for much of their marketingefforts, said sports-marketingexperts.“There is less fallout for AT&Tbecause there is less public awarenessof Tiger’s relationship withAT&T,” said Kevin Adler, founderand president of Engage MarketingInc., a Chicago sports and entertainmentmarketing firm. “Youcouldn’t walk through an airportwithout seeing a Tag or Accenturead with Tiger,” he said.Accenture, the global consultingfirm that severed ties with Mr.Woods in December, used thegolfer as the centerpiece of its marketing-and-advertisingprogram,and he appeared in most of its ads.Swiss watchmaker Tag Heuer,one of the companies that has saidit would stand by Mr. Woods, has dialedback ads featuring him in theU.S. Tag Heuer is a unit of the luxury-goodscompany LVMH MoëtHennessy Louis Vuitton SA.AT&T said its sponsorship agreementwith Tiger Jam has expired,but it will continue to sponsor theAT&T National, a PGA Tour golftournament held in July that hasbeen hosted by Mr. Woods and benefitshis charitable foundation.“We look forward to a successful2010 tournament,” the spokesmansaid.Mr. Woods won’t be hosting theevent this year because he is on anindefinite leave from professionalgolf, according to Ty Votaw, aspokesman for the PGA Tour. Still,Mr. Woods’s charity, the TigerWoods Foundation, will continueto be the beneficiary of the AT&TNational, Mr. Votaw said.The revelations about Mr.Woods’ personal life have created apublic-relations nightmare for thecompanies that paid millions of dollarsto hitch their brands to Mr.Woods. The golfer earned roughly$90 million a year from his endorsementpacts.Each company has handled thesituation differently. Nike Inc. andsports-memorabilia retailer UpperDeck Co. have said they will standby the 34-year-old Mr. Woods,while Procter & Gamble Co.’sGillette unit has limited Mr. Woods’role in its marketing programs.By Jung-Ah LeeSEOUL—Samsung ElectronicsCo. said Sunday that it sold 2.6 millionunits of LCD television setswith light-emitting-diode, or LED,backlight technology in 2009, upfrom its initial target of about twomillion units.Samsung, the world’s largest liquid-crystal-displaytelevisionmaker by volume, also said it expectsits LED-backlit LCD televisionsales to rise nearly fourfold to 10 millionthis year, which suggests theelectronics company is likely to continueto cement its dominant positionin the global LCD television marketamid intensifying competitionin a fast-growing segment.“Samsung plans to make an aggressivemove to help its LED TVlineups make up more than half ofits total TV models this year,” thecompany said in a prepared statement.Samsung intends to launcheight LED TV series this year in sizesranging from 19 to 65 inches, comparedwith three such series lastyear in sizes ranging from 32 to 55inches, according to the statement.The move will likely acceleratethe industry shift to the more advancedtechnology as the LED televisionset is largely expected to becomethe mainstream flat-screenTV, superseding the dominant LCDTV that uses cold cathode fluorescentlamp, or CCFL, backlight technology.LED television sets are thinnerand have brighter displays andhigher energy efficiency, comparedwith traditional LCD television sets.Samsung Electronics also said itwill first unveil its three-dimensionalLED television set at the ConsumerElectronics Show 2010, scheduledto start Thursday in Las Vegas.The technology will allow consumersto watch three-dimensional movies,television channels and videogamesat home with the help of specialglasses.the economy humming.China’s stock market anticipatedthat spending gusher and poweredout of the gates in early 2009 , avoidinghitting a new low even as marketsin much of the rest of the worldfound their nadirs in early March.The benchmark Shanghai CompositeIndex hit its low point in October2008. It rose 80% in 2009, but remains45.7% below the October2007 peak.“It certainly surprised us howstrong domestic conditions were totake some of that slack left by the collapsein exports,” says Michael Lai,investment director for asset managementfirm GAM in Hong Kong.He thinks consumption will continueto be the backbone of the economyin 2010 and will drive consumercyclical stocks in China.Asia’s head start in the recoveryattracted a torrent of investmentcash into the region. Asian investmentfunds outside Japan took in$25 billion in 2009, besting the previousrecord of $20 billion in 2007,according to data firm EPFR Global.Those inflows boosted local currenciesand made returns for holdersof Asian stocks even greater indollar terms. Currencies in South Korea,Japan, Thailand, Indonesia andAustralia all posted strong increasesagainst the dollar in 2009.Hong Kong’s and Singapore’sstock markets, two of the region’smost liquid, became major buyingtargets for overseas investors seekingto benefit from China’s growth.The benchmark Hang Seng Indexrose 52%, its biggest one-year leapin a decade, and Singapore’s StraitsTimes Index climbed 64.5% to end atits highest close since Aug. 1, 2008.The money inflows from outsidethe region, combined with China’s30% money supply growth, reinflatedmarkets. But the upswingalso caused policy makers to contemplatewhether new and dangerousbubbles were forming in Asia,leading investors to expect interestrateincreases early in 2010.Despite the gains in 2009, investorssay market values aren’t in bubbleterritory yet. Some believe thatas corporate earnings expand duringthe recovery, stocks can continueto rise without valuations risingtoo high. Asian stocks tradearound 2.1 times book value. Duringthe market peak in 2007 that valuationmeasure hit 3 times, suggestingthere still may be room to run.Investors are betting Asia will expandhealthily on the back of continuedgovernment stimulus and rapidlygrowing domestic consumption.Even modest growth in the U.S.and Europe, the usual source of demandfor Asia’s exports, would beenough to keep Asia’s companieshumming, said Sakthi Siva, emergingmarkets strategist for CreditSuisse in Singapore.And should demand pick up inthe West faster than expected, Asiacould enter a period of superchargedgrowth. But that also wouldraise fears of inflation and put pressureon policy makers to hit thebrakes.Asian central banks already arecontemplating removing the ultralowinterest rates imposed duringthe depths of the financial crisis. Butin the past, Asian policy makers havewaited for the U.S. Federal Reserveto raise rates before acting themselves.The U.S. is a long way fromraising rates and Asia is a step aheadin the economic cycle. Real-estateand food prices are already rising.“Yields rising will cause investorsto pause and question growth,”says Adrian Mowat, Asia and emergingmarkets strategist for J.P. MorganChase. But rising rates won’tnecessarily snuff out the bull market.“Don’t be afraid of higher interestrates if it’s to remove the medicine”needed during the crisis, hesays. “Worry about it if it’s about inflationconcerns.”Continued from first pageTiger Woods at the 2009 AT&T National, which he won’t be hosting this year.Samsung topsits sales targetfor LED TVsShould demand pick up inthe West faster thanexpected, Asia could enter aperiod of superchargedgrowth. But fear of inflationwould follow quickly.Asia is in a prime spot to ride the recoveryAT&T cuts ties with WoodsCompany joins other marketers who want to distance themselves from allegations of infidelitiesGetty ImagesFROM PAGE ONECORPORATE NEWS18 THE WALL STREET JOURNAL. Monday, January 4, 2010Monday, January 4, 2010 THE WALL STREET JOURNAL. asia.WSJ.com&BUSINESSFINANCE.China hasbig appetitefor M&ABY PETER STEINHONG KONG—China’s new year’sresolution: Buymore overseasassets, especiallyresources.Sound familiar? It’s the sameresolution China made last year,and the year before.China’s outbound mergers andacquisitions totaled $43.39 billionin 2009, according to Dealogic.That was down from $50.33billion in 2008, but only becauseChina’s most ambitious deal of theyear, Aluminum Corp. of China’sproposed $19.5 billion alliancewith Rio Tinto, was thwartedwhen Rio opted for a tie-up withBHP Billiton instead.The results of China’s overseasbuying binge, which first wentinto overdrive in 2008, areastonishing. Total outbound M&Ain 2008 and 2009 alone surpassedall China’s outbound M&A for theprevious eight yearsDon’t expect the action to letup soon.Please turn to page 24[ The Viewfrom Hong Kong]Buying bingeChina's outbound M&A, in billionsof U.S. dollarsSource: Dealogic2000 ’02 ’04 ’06 ’08 ’0902040$60On Street: Talk, not changeDespite vows to transform finance sector, some firms boost leverage; swaps still opaqueSo much has changed over thepast year.Or has it?On the heels of the most harrowingperiod for financial marketssince the Great Depression, politicians,regulators, investors and WallStreet executives shared a vow:never again. They would reform thesystem and change behavior to preventanother financial calamity.Some significant changes havebeen made, such as slashing WallStreet’s debt, scrutinizing compensation,simplifying financial productsand potentially increasing surveillanceof financial markets.But more than a year after LehmanBrothers, American InternationalGroup Inc., Fannie Mae,Freddie Mac and Washington Mutualeither collapsed or were savedby the U.S. government and financialmarkets swooned, it is strikinghow little on Wall Street haschanged.Indeed, the surge in marketsaround the globe last year suggeststhat fear has been replaced by relativecomplacency.“We’ve been successful in identifying,appreciating, and debatingthe big systemic issues,” says DanielAlpert, managing partner of WestwoodCapital LLC, a New York investmentbank.“But we’ve done precious little toeffect measures that reliably protectthe future of our global financialsystem,” Mr. Alpert says.That banks and Wall Street firmshave slashed their debt is a positivestep since it was this heavy borrowingthat put them in a precariousposition. Most major investmentsbanks now borrow money at abouthalf 2007 levels, according to researchfirm CreditSights.These levels are “more manageableand don’t pose inordinate systemicrisk,” says David Hendler, aCreditSights analyst. “We won’t goback to [previous levels] for years.”During the two decades leadingup to the financial crisis, financialproducts became increasingly complex.Collateralized debt obligations,or CDOs, begat “synthetic CDOs”which begat “CDO-squareds.”Eventually, senior executivesdidn’t understand products theirown firms had created, and thefirms held too many of these productsfor themselves.Lately, however, financial firmsare shying away from churning outcomplicated, newfangled products,potentially reducing the likelihoodthat a big firm will be caught withunexpected losses.A year after Bernard Madoff acknowledgedthe biggest Ponzischeme in history, a scam that regulatorsmissed for years, there aresigns they are stepping up theirscrutiny.Hedge fund Galleon Group is beinginvestigated for alleged insidertrading, and some recent reformshave been unveiled at the Securitiesand Exchange Commission. The SECis scrutinizing flows of informationon Wall Street—where traders,bankers, lawyers and other playersswap information and favors.Meanwhile, changes in the wayWall Street’s employees are paidmay reduce the incentive to embracerisky short-term moves.Bonuses for 2009 that will bepaid to the top 30 Goldman SachsGroup Inc. executives will be instock that can’t be sold for fiveyears, rather than cash. (Most employeesat the firm will still havecash as a component of their bonuses,however.) At Citigroup Inc.and other firms, base salaries havebeen raised, and bonuses cut.Employees of smaller banks stillbenefiting from the U.S. government’sTroubled Asset Relief Programface other curbs on pay, andthe U.K. has instituted even strictermeasures, though many larger bankshave handed TARP money back tothe government, allowing them tohand out big bonuses if they choose.But some suspect it will be businessas usual once the governmentmoney is paid back. Wall Streetfirms still generally pay more thanhalf their revenue to employees ascompensation, a figure that actuallyclimbed over the past year.Despite predictions that the financialsector would shrink dramatically,allowing brain power to beemployed in other fields, the headcount in the financial industry isdown just 10% in the past year, accordingto the Securities Industryand Financial Markets Association.And while firms have cut theirPlease turn to page 25BY GREGORY ZUCKERMANStephen WebsterJapan must take radical actionor face a third lost decadeHEARD ON THE STREET 36After 800 years, time forCambridge to sell bondsMARKETS 30barcap.comRECOGNISED FORPUTTING YOURSUCCESS FIRST.A selection of 2009 global awards and rankings.Earn Success Every DayIssued by Barclays Bank PLC, authorised and regulated by the Financial Services Authority and a member of the London Stock Exchange, Barclays Capital is the investment banking division of Barclays Bank PLC, which undertakes US securitiesbusiness in the name of its wholly-owned subsidiary Barclays Capital Inc., an SIPC and FINRA member. ©2010 Barclays Bank PLC. All rights reserved. Barclays Capital is a trademark of Barclays Bank PLC. All other trademarks, servicemarks orregistered trademarks are the property, and used with the permission, of their respective owners.#1 in EuropeanFixed-IncomeOverall Market Share#1 in US Fixed-IncomeOverall Market ShareBest FX HouseBest FX Housein North AmericaBond House of the YearCredit DerivativesHouse of the YearSecuritisation Houseof the YearAll-America Research Team#1 in US Equity Research#1 in US Fixed-IncomeResearchStructured ProductsAmericasHouse of the YearStructured ProductsEurope House of the Year2009ShareLeaderManagement:From CEO interviews to compensationsurveys and the latest business jargon. Thisis where you’ll find the best practices andnewest thinking in management.The Power list:A weekly round-upof the top executivesmost mentioned inthe news.The View fromHong Kong:A weekly columnby Peter Stein, HKBureau Chief, oneconomic, marketand corporatedevelopments in Asia.TECHNOLOGYSeeking fortunesin China’s handsIPhone’s debut offers opportunities for app developersBy Juliet YeLess than a month after Apple Inc.’s official launch of itsiPhone in China, Internet companies big and small are racingto offer the nation’s hot new app.Winners so far include practical applications for gettingaround town and translating Chinese into English; games thatlet users mine gold for profit or fight the Soviets in an alternate-historyEurope; and even software for finding soul mates.But China presents unique challenges. IPhones there currentlylack WiFi wireless Internet capabilities. Language andcultural issues plague distribution. While China already has anestimated two million iPhones in circulation, the vast majorityare “jailbroken”—meaning they operate off the iPhone’s officialChina Unicom Ltd. 3G network—and are more likely todownload pirated apps.“We know perfectly well that Chinese market is huge andhas great potential. But when we release apps targeting usershere, we’re usually not able to get reasonable returns becauseof piracy,” said Shi Weixing, founder and chief executive of Chinesemobile application company 9thQ.The market for legitimate Chinese iPhone apps is small butsurging. Mr. Shi’s company estimates about $1 million worth oflegitimate iPhone apps have been sold so far this year, thoughthe market could reach $6 million by next year. By comparison,mobile advertising firm AdMob says about $200 millionin apps are sold overall through Apple’s store each month.“Once Wifi is allowed on future 3G iPhones and the price ofhandsets falls due to product life cycle, more subsidies or economiesof scale, we will see the iPhone market in China go mainstream,”said Frank Yu, chief operating officer for BeijingbasedShouji Mobile, which designs apps.Major Chinese Internet giants have entered the fray. TopWeb portal Sina.com offers apps that provide news updatesand lets users update their blogs. Tencent Holdings Ltd., theInternet company that runs the popular Chinese instant messagingsystem QQ, also offers QQ for iPhone users in and outsideChina. A number of English-language Western apps alsoare popular, including Electronic Arts Inc.’s Command & Conquergame and Quickoffice Inc.’s office software.Meanwhile, some Chinese developers have come up withapps that have proven popular outside the mainland. BeijingbasedColorme Info Tech Co. says it makes monthly revenueof 400,000 Chinese yuan, or $58,600, from Gold Miner, an English-languageprospecting game.“We have to consider what kinds of games are appealing tousers from the West and the East,” said Mao Guangcan, Colormechief executive. “Sometimes, games we developed forWestern users turn out to be bestsellers in app stores inChina.”Payment method poses a growth barrier. Apple’s App Storerequires a credit card issued by a Chinese bank, which is stillnot yet commonplace, said Shouji’s Mr. Yu.Right now, most of the apps and their instructions are inEnglish, with prices in U.S. dollars instead of Chinese yuan. Bycontrast, pirate app Web sites have detailed instructions in Chineseon how to download content from pirate servers. Applehas recently added more Chinese language instructions.“Localization is most important. Products should be asmuch in line with Chinese lifestyles as possible,” says Mr. Shi,who noted Texas Hold ’Em games likely wouldn’t go over well.HOROSCOPE—PAST,PRESENT, FUTUREDeveloper Rico Co.Price $18.99This app—the nameabove is a rough translation—takesthe guessworkout of personal relationships,allowing theuser to judge two people’scompatibility and determinetheir destinies basedon birth dates.POWERWORD 2.0PROFESSIONAL EDITIONDeveloper Beijing Kingsoft Software Co.Price $4.99An iPhone version of one of China’smost popular English translation softwarepackages, with the ability to translatewhole sentences.LRC PLAYERDeveloper Jacky MaPrice $1.99This Chinese-language music player offerslyrics and can search for them on the Internetwhen they’re not at first available.WORLDCARD MOBILECHINESE VERSIONDeveloper PenpowerTechnology Ltd.Price $19.99Description The software allowsan on-the-go businessperson tocapture and recognize businesscards and claims to recognizesimplified Chinese, traditionalChinese and English.Photos from Apple ComputerTuesday, November 17, 2009 THE WALL STREET JOURNAL. 11BUSINESS FINANCEDefaults slow amid a refinancing waveSome struggling companies are accessing the credit markets,avoiding having to file for bankruptcyThe bankruptcy boom is goingbust—for now.The financial crisis created oneof the worst periods in U.S. historyfor corporate bankruptcies, fellingthe likes of Circuit City Stores Inc.,General Motors Corp. and CITGroup Inc.Now corporate failures haveslowed, as companies once on theverge of default have found a newlife. These companies are now refinancingtheir balance sheets withnew debt, pushing out maturities onexisting loans or using distresseddebtexchanges to avoid a bankruptcyfiling.Speculative-grade companies—orthose with “junk” credit ratings—haveissued about $123 billionin new bonds this year, comparedwith roughly $48 billion in all oflast year, according to data providerDealogic. These debt offerings areon a record pace, and analysts haverevised their bleakest debt-defaultforecasts from the start of 2009.At the height of the credit crisisin January, Moody’s Investors Servicepredicted that as much as 16.4%of U.S. junk-rated companies wouldhave defaulted in the past 12months. Some analysts said the defaultrate might not peak until thefirst quarter of 2010.Now, Moody’s expects that U.S.default rate to peak at 13.6% thismonth and fall to 4.4% a year fromnow. Just three large publicly tradedcompanies filed for bankruptcycourtprotection in September andsix filed in October, down from 16 inMarch, according to data compiledby Lynn LoPucki, a University ofCalifornia, Los Angeles law professor.Despite the slowdown, therehave been signs in recent weeksthat corporate bankruptcies couldremain steady or even increase.There have been several high-profilefilings including Capmark Financialand CIT. Already five big companieshave filed in November.“Six months ago, no one thoughtthat many of these companies couldaccess the high-yield market. Butthe window has opened for now,”said Barclays Capital restructuringchief Mark Shapiro.It remains unclear “how long thewindow will stay open,” Mr. Shapirosaid, but “for now it’s helping a lotof companies avert restructuringsor bankruptcies that would haveotherwise occurred in the nextyear.”Indeed, distressed companieswere shut out of credit markets inthe winter as investors demandedyields on junk bonds that typicallyexceeded 20%. Now, average yieldsare closer to 10%, according to theMerrill Lynch U.S. High-Yield MasterII Index.The Federal Reserve has helpedopen up this market by keeping interestrates near zero. If the Fedpeels its recent layers of marketsupport, debt-laden companiescould find it more prohibitive to refinancetheir billions of dollars inlooming bond and loan maturities.These struggling companies wereeffectively saved by the government,which has poured cash into the financialmarkets, driving down theyields on safe securities. That hasforced investors to ramp up theirrisk in order to get a decent return.Individual investors, for example,have poured about $18 billion ofcash into high-yield bond funds thisyear, according to Lipper FMI. Thatis the most since 2002, according toBabson Capital.In April, for instance, auditorsraised doubts about whether BlockbusterInc. could avoid bankruptcycourt. But in October, the movierentalchain raised $675 millionfrom the sale of new bonds to reducelooming obligations to banks.Amid strong demand for the bonds,the company raised twice as muchas it had first sought.Other companies including casinooperators Harrah’s EntertainmentInc. and MGM Mirage, andhome builder Beazer Homes Inc.have tapped credit markets to refinanceexisting debt after months ofbankruptcy worries.Some have been able to “amendand extend” loans. Michaels StoresInc. pushed out a $1 billion loan maturityby three years to 2016. FordMotor Co., which averted governmentaid by grabbing $24 billion infinancing three years ago beforecredit markets collapsed, just askedits lenders to extend as much of its$11.5 billion revolving credit facilityas possible by two years to November2013.Still, many analysts worry thatthe refinancing wave amounts onlyto “kicking the can” down the road,without fundamentally solving companies’broken capital structures.Among weaker companies, about$1.4 trillion in bonds and loans willstill come due in the next five years,said Dominic DiNapoli, the chief operatingofficer of FTI Consulting, abusiness advisory firm.“It’s a staggering amount ofmoney,” said Michael Imber, whodoes restructuring work for financial-advisoryfirm Grant ThorntonLLP. He and other restructuring expertssaid many businesses will remainchallenged amid 10% unemploymentand still-fragile markets.“Nobody can forecast revenueright now. The consumer is still unsteady,”Mr. Imber said. “There isgoing to be a steady stream of problemsahead of us.”Despite increased access to themarket, most of the companies currentlyrefinancing are still deep injunk territory. Many appear on amonthly Moody’s watch list of companiesin risk of defaulting on theirdebt. Moody’s latest list—formerlycalled the “Bottom Rung”—flags 274companies rated B3 or lower thatcarry roughly $263 billion of ratedbank and bond debt. The companiesrepresent nearly 18% of all U.S. companiesMoody’s rates.In normal periods, high debt issuanceis a sign of economic robustness,as companies use new capitalto expand. But the current volumeof new debt “is nearly 100% refinancing.It’s not new issue in theclassic sense,” said Richard Banziger,a managing director at CitigroupInc., during a recent gatheringof the Turnaround ManagementAssociation. “From that perspective,it’s less healthy.”Investors are willing to flock tothese companies, though, and areproving amenable to distressed exchangeoffers. In these deals, bondholderstrade existing debt for newdebt maturing later, equity in a restructuredcompany, or both.YRC Worldwide Inc., a strugglingtrucking company, just askedbondholders holding about $537million in debt to exchange theirholdings for 95% equity in a reorganizedcompany. “We’re doing all ofthis out of court,” said Bill Zollars,YRC’s chairman and chief executive,in an interview.Mr. Zollars said the companywould seek other bankruptcy alternativesshould the exchange fail, but“we’re pretty confident that thiswill, in fact, get executed accordingto plan.” A person familiar with thesituation said enough bondholderswould likely agree to the deal.Such offers don’t always work.Energy Future Holdings Corp.—theTexas power company formerlyknown as TXU Corp. that was acquiredtwo years ago in a recordsettingbuyout by private-equityfirms Kohlberg Kravis Roberts &Co. and TPG—recently only garnered$357.5 million in a debt exchange.The company had aimed towipe out $3 billion in debt.Heading into next year, “workoutsstill will be a hot place to be,”said Diane Vazza, head of globalfixed-income research at Standard &Poor’s.BY MIKE SPECTORAND KATE HAYWOODA woman browses at a Park Ridge, Ill., Blockbuster last week. The video-rental chain has recently eased its bank obligations.Bloomberg NewsJ.P. Morgan nears a deal to buy the rest of CazenoveLONDON — J.P. Morgan Chase &Co. is closing in on a deal to buy outits U.K. joint-venture partner, thevenerable broker Cazenove Group,for a little less than £1 billion ($1.67billion), according to people familiarwith the matter.In the coming weeks, the twosides are expected to agree to a dealin which J.P. Morgan would buy the50% of the investment-banking partnershipit doesn’t own, the peoplesaid, though they cautioned a dealhasn’t been struck. The deal hasn’tgained approval from the necessaryboards and committees, say peopleclose to the matterJ.P. Morgan paid about £100 millionin 2004 for a 50% stake in theventure with Cazenove.J.P. Morgan Cazenove, run sincelast year by Chief Executive NaguibKheraj, former finance chief of BarclaysPLC, is a storied firm in theCity of London. Tracing its roots to1819, Cazenove became one of London’sleading stockbrokers in themid-1930s, according to its Website. In the 1980s, it played a keyrole in the U.K. government’s historicprivatization drive.The firm, famous for being theQueen’s broker, also has been thecorporate broker to a number of theU.K.’s biggest and most importantcompanies, helping them interfacewith investors. That has helped thejoint venture win coveted investment-bankingmandates here, advisingclients on merger and underwritingdeals and other matters.J.P. Morgan Cazenove hasworked on a number of marqueeU.K. deals this year, such as LloydsBanking Group PLC’s recent £13.5billion share sale.In the first nine months of thisyear, J.P. Morgan Cazenove rankedfirst in underwriting primary U.K.equity issuance, with $19.5 billion ofdeals to its credit and a 27% marketshare, according to its Web site.J.P. Morgan, which has emergedfrom the financial crisis relativelyunscathed, appears to be taking advantageof that strength to scoop upits U.K. affiliate. Cazenove’s partnershipwith J.P. Morgan, struck fiveyears ago, gave the U.S. bank theoption to buy the rest of the ventureby February 2010.It also carried anoption for Cazenove’s 1,500 ownersto force a full sale to J.P. Morgan.J.P. Morgan was long expectedto take full ownership of the venture;the question was when itwould do so.BY DANA CIMILLUCAAND SARA SCHAEFER MUÑOZ26 THE WALL STREET JOURNAL. Tuesday, November 17, 2009 Technology:Focusing onconsumertechnology with arecurring peek atthe latest gadgetryin the region.

10 THE WALL STREET JOURNAL. Wednesday, December 2, 2009THE PROPERTY REPORTThe allure of Dubai World’s trophiesSale of prime properties could hold key to reviving commercial real-estate market; quenching thirsty investorsA move by Dubai’s flagship conglomerateto sell some trophy propertiescould help turn the gears of acommercial real-estate market that’sbeen stalled for more than a year.Dubai World hasn’t said specificallythat it plans to unload real estatein order to raise cash to pay itsdebts. But in a statement detailingdebt-restructuring plans early Tuesday,Dubai World said the restructuringprocess would include “assessmentof delevering options,including asset sales.”A Dubai World spokesman declinedto comment on possible propertysales. Dubai World owns highprofileproperties around the world,including office buildings in NewYork and London and luxury hotelsacross the U.S.Dubai’s problems are coming tolight as property investors navigateuncharted waters. Banks and troubledborrowers haven’t flooded themarket with cheap properties, eventhough rent and occupancy are stilldeclining around the world, financingremains scarce and defaults aresoaring. Lenders, hoping to avoidmarkdowns on their balance sheets,have largely shied away from fore-closing on overleveraged buildingowners. That has left investorsthirsting for deals.“Perversely, increased availabilityof good quality assets to buywould improve liquidity in the marketas there is strong demand atpresent for limited stock,” says PeterDamesick, head of U.K. researchat commercial real-estate servicesfirm CB Richard Ellis Group Inc.In the U.S., the total value of allcommercial real-estate deals of $5million or more will reach just $49billion in 2009, research firm RealCapital Analytics projects. That isless than one-tenth of the $497 billionin deals done in 2007, and evenless than the $79 billion in dealsdone in 2001. Meanwhile, real-estateprivate-equity firms around theworld are sitting on $172 billion incommitments from investors, accordingto research firm Preqin.“There is no product out there,there is nothing to buy, and there’sa lot of money out there that wouldlove to buy,” said Sam Zell, the realestate“grave dancer” who made afortune from earlier downturns.That could be one of the few bitsof good news for landlords whoneed to raise cash by selling buildings.Bidding has been especiallyheavy when prime properties—suchas fully leased, trophy office buildingsin major cities—have gone onthe block.Buyers have been most aggressiveoutside the U.S.. In Hong Kong,a wealthy investor in Septemberpurchased a 23-story office buildingfor $465 million at a 4.3% yield—recallingvalues at the height of thebubble. In London, the average yieldthat buyers have been willing to acceptfell one percentage point overthe past six months, signaling anuptick in valuations, according toReal Capital Analytics research directorDan Fasulo.International investors have alsobeen looking for deals in the U.S., insome cases driving up values. Germanproperty-fund manager Dekastunned American real-estate investorswhen it agreed to buy a 12-story office building in Washingtonfor $208 million. And in recentmonths, the Manhattan headquartersof HSBC Holdings PLC drew 43bids, according to Steve Collins ofcommercial brokerage Jones LangLaSalle Inc., which worked on thedeal. The top four second-round bidderswere all international groupswilling to pay all cash, Mr. Collinssaid. The building ended up going inOctober to Israeli investment companyIDB Group for $330 million incash.Dubai World’s New York officebuildings include Six Times Square,purchased for $300 million in 2007,and the 40-floor 450 Lexington Ave.,acquired for $600 million in 2006,according to Real Capital. In London,Dubai World owns severalpostcard buildings, including theMetropole Building, 10 WhitehallPlace, Grand Buildings on TrafalgarSquare and the Adelphi office buildingon the Strand.Dubai World borrowed heavily toramp up its real-estate holdings.The company’s investment arm Istithmarin the past few years borrowedabout $1.1 billion to acquirefive properties in the U.S., includingfour hotels and an office building,according to an analysis of publicrecords by Trepp, a New York firmthat tracks the commercial real-estatemarket. About $816 million ofthat debt was bundled into commercial-mortgage-backedsecurities,Trepp’s study shows.But top-of-the-market deals donewith a lot of borrowed money mayhave little equity left to save, complicatingany strategy to raisemoney by selling assets. For example,the $115 million mortgage usedby Istithmar to buy the W Hotel inNew York’s Union Square was transferredin late September to a “specialservicer” because of concernsover imminent default stemmingfrom the hotel’s dwindling cashflow, according to Trepp.—Chip Cumminscontributed to this article.BY ANTON TROIANOVSKIAND WILLIAM BOSTONDubai World paid $375 million in 2008 for a 50% stake in the Fontainebleau Miami Beach Hotel in FloridaBloomberg NewsRents in London’s West End rise; rival markets slipLondon’s West End can onceagain lay claim to the dubious distinctionof being the world’s mostexpensive office market after itsrental prices surged past those inthe inner central district of Tokyo.Office rents in the West End roseover the six months to Sept. 30 asmost global markets reported a decline,according to research fromproperty advisers CB Richard Ellis.Offices in the West End werecharging an average of $184.85 persquare foot per year at the end ofSeptember, up from $172.62 inMarch. Offices in Tokyo’s inner centraldistrict, which was the secondmost expensive place to rent, costan average of $171.64 per squarefoot. The third most costly rental locationwas Tokyo’s outer central district,where a square foot of officespace cost $139.09.Hong Kong’s central businessdistrict and Moscow rank fourth andfifth in the report, which tracks officeoccupancy costs in 179 citiesaround the world.CBRE said in the six months tothe end of March, Tokyo’s inner centraldistrict had overtaken the WestEnd to be the most expensive officemarket in the world. In its latest report,CBRE reported a surge in demandfor West End offices since thesummer as a result of strong demandfrom banking, finance andbusiness services.Wile rents in the West End haveincreased in absolute terms sincethe last report, rents in the otherfour most expensive cities declined.Prime-office-occupancy costs declinedacross the cities covered bythe research, which found that overthe 12 months to the end of September,the markets reported an averagedrop of 7.7% world-wide. Nearly50 markets reported a double-digitdrop over the period, and 131 reportedan annual decline.Raymond Torto, the global chiefeconomist at CBRE, said: “Whilethere are signs that commercial realestate values are stabilizing in somemarkets in Asia and parts of London,underlying property fundamentalsare still weak.However, the office market maybe on the cusp of moving from ‘intensivecare’ to the ‘recovery’stage–the first step to getting backto good health.”—More at efinancialnews.comBY PHIL CRAIGTowering rentsTop 10 most expensive officedistricts world-widen London (West End)n Tokyo (Inner Central)n Tokyo (Outer Central)n Hong Kong(Central Business District)n Moscown Parisn Mumbai (CBD)n Dubain London (City)n New Delhi (CBD)Source: CB Richard EllisSource: Real Capital AnalyticsIll-timed dealsValue of Dubai World property deals$979 million172241731037243,8382112,4572,381722762005’06’07’08’09Number ofproperties8,832BoughtSoldBUSINESSREALESTATEUNITED STATES20 million oz discovery so far @Money Knob. Livengood, Alaskawww.ithmines.comLast 10 claims for sale.Contact Bob (907) 457-3295 oremail @ cinabar56@hotmail.comWhere Real EstateWhere Real EstateWhere Real EstateWhere Real EstateProfessionalsProfessionalsProfessionalsProfessionalsConduct BusinessConduct BusinessConduct BusinessConduct Businessfor more infofor more infofor more infofor more infoCall (852) 2831-2553Call (852) 2831-2553Call (852) 2831-2553Call (852) 2831-2553(65) 6415-4279 or (813) 3292-4151(65) 6415-4279 or (813) 3292-4151(65) 6415-4279 or (813) 3292-4151(65) 6415-4279 or (813) 3292-4151Wednesday, December 2, 200DubaiIslamic bonds sufferOnly days ago, Islamic bonwere getting talked about in tsame sentence as General ElectCo. Now they are synonymous wthe worst storm to hit global mkets in months.At the center of the current trobles facing Dubai’s state-run coglomerate, Dubai World, is $3billion in Islamic bonds, or sukthat will mature Dec. 14. Last weDubai sought to postpone that pment together with other oblitions faced by Dubai World, raisthe prospect of a potential defauThat is dealing a blow to tbroader market for Islamic bonwhich only recently showed signsreviving after getting crushedthe global financial crisis.Last month, GE finance arm Geral Electric Capital Corp. becathe first major American compato issue a sukuk, in a $500 millitransaction that was hailed as a wtershed by those in the industryThe problems in Dubai will haa chilling effect on the marketsukuk, observers said, as potentissuers watch to see how the sittion unfolds in the coming week“Everyone is going to freeze ubit,” said Isam Salah, a partnerlaw firm King & Spaulding, whocuses on Islamic finance and dividhis time between New York aDubai.BY JOANNA SLATERDiscovery astake in PinSouth Africa’s largest health-cinsurer Discovery Holdings Lwill pay less than 900 million ra($121.5 million) for a nearly quarstake in Ping An Health InsuranCo., a unit of China’s second-bigglife insurer by premiums.The deal, which is likely to benalized by the second quarternext year, would mark the fiforay into China by the South Acan health-care and life insurer.In a nonbinding preliminaagreement announced Tuesday, PiAn Insurance (Group) Co. of ChiLtd. and Discovery have agreedthe South African insurer to buymuch as 24.99% in Ping An’s heainsurance unit, leaving the parewith the 75.01% holding.Adrian Gore, chief executiveDiscovery, said the total price isexpected to exceed 5% of Discery’s market capitalization. Mr. Gotold analysts and reporters durinconference call the company’s tomarket capitalization was aboutbillion rand to 20 billion rand.China’s population of more th1.3 billion has attracted a steastream of foreign insurers abanks to the country, with the likof German health insurer DDeutsche Krankenversicherungand American International GroInc. each already holding minorstakes in Chinese insurers.Some foreign companies haalso set up joint ventures in Chiwhile others have bought stakesChinese lenders in order to crosell their products through banBY ARIES POONAND J.R. WU8 THE WALL STREET JOURNAL. Thursday - Sunday, Dec. 31, 2009 - Jan. 3, 2010WEALTHWhat are the biggest investing lessonsof the past decade?It’s been a tough and turbulent 10 years,but if we begin the next decade wiser aswell as older then maybe it won’t all havepassed in vain.For me, these are some of the main takeaways,lessons and reminders of the past 10years.The price something used to be is irrelevant.Just because a stock traded for$100 six months ago doesn’t mean it’scheap at $50, or $20, or even $1.50 today.Think of technology stocks from 2000-02,bank stocks from 2007-09, and so on. Thesame is true, with some extra zeroes, forMiami real estate.Psychologists call this “anchoring”—welet previous prices influence our views ofcurrent value. It’s a menace, possibly thebiggest peril facing private investors. (Thecorollary is that market bubbles give youplenty of time to get out when they start todeflate, but too many people hang aroundbecause they believe that things can’t getany cheaper.)Have a portfolio that doesn’t keep youawake at night. For real people with reallives, investments that let you sleep atnight are far more valuable than excitingspeculations that offer “pin action” and“momentum.” We’ve just seen why. If wereally understand and trust an investment,we’re more likely to hang on to it or evenbuy more, in a crash.This is a much-overlooked advantage toinvesting in companies like, say, Diageo(Guinness beer, Smirnoff vodka) or KraftFoods (Kool-Aid, Jell-O) or ExxonMobil. Ifyou owned them in 2000 and 2006, youwere less likely to dump them when thingsgot tough down the line. That’s one reasonI’m still wary of buying financial stocks inany environment, even if they are cheap.Beware the phrase “relative value.” It’sthe financial equivalent of “half pregnant”—purenonsense. Value is value: It’sabsolute. An investment is inexpensive inrelation to its future cashflows, or it isn’t.But in every boom, many people are suckeredinto paying way too much for an asseton the basis that it’s cheap relative to other(even more overpriced) assets.Have the courage of your convictions.Today’s investing geniuses started the decadelooking like idiots, because they heldold-fashioned value stocks, emerging markets,gold and commodities. These investmentsslumped for years while the likes ofCisco and AOL made countless paper millionaires.You can look wrong for a longtime before you look right.It was 10 years ago this winter thatsome of those value stocks hit rock bottom:solid blue-chip companies were boasting10% dividend yields, but hardly anyonewanted them. The brave made a fortune.There is no substitute for saving. Formost of this decade the U.S. savings ratehas been on the floor. Hard to believe today,but earlier this decade some commentatorsargued that Americans didn’t reallyneed to save more because they were makingso much money on their stocks andhomes.Saving money is like losing weight.There are no reliable shortcuts. Whateveryou make, spend less.Never confuse a trade with an investment.If you want to speculate on the nextbubble, it’s up to you. Although risky, bubblesyield the easiest and biggest profits.Just remember it’s a trade, a short-termholding, not an investment, which youshould expect to hold for years. Just besure to get out in time. Earlier this decade,too many people decided to call their techstocks long-term investments once theystarted tanking, in effect turning a shorttermloss into a long-term disaster. (Oh,and a corollary: Never be afraid to take aloss on your trades. The willingness to takea 20% loss may save you a 100% loss).Daily headlines are less importantthan long-term trends. The investors Iknow who made a lot of money this dismaldecade usually did so by understandinglong-term trends—the effect of Chineseeconomic growth, supply and demand inthe gold market, or burgeoning U.S. debt.Yet most private investors aren’t interestedin these long-term stories. They wantMoney lessons from a decadeof disappointment can helpavoid pitfalls in the futureThe best and worst investing trends from the past 10 years, and what they taught usBY BRETT ARENDSInvestors who made a lot of money this dismal decade usually did so by understanding long-term trends like the effect of Chinese economic growth.Bloomberg News‘Relative value’ is the financial equivalent of ‘half pregnant.’ It’s purenonsense. Value is value. In every boom, many people are suckeredinto paying way too much for an asset on the basis that it’s cheaprelative to other (even more overpriced) assets.Thursday - Sunday, Dec. 31, 2009 - Jan. 3, 2010THE WALL STMARProfits leavehigh hurdlefor stocksBY MARK GONGLOFFWall Street has formed a fairlysolid consensus that corporateearnings will spike in 2010. Theproblem for stock investors is thatthe market may be priced for italready.The forecast of Wall Streetanalysts is that companies in theStandard & Poor’s 500-stock indexwill earn $77.54 a share next year,according to Thomson Financial,implying a gain of roughly 30%over 2009.This is a “bottom-up” forecast,adding together the outlook ofeach equity analyst for theindividual stock they cover. Suchforecasts are almost always moreoptimistic than “top-down”estimates, compiled by economistsand strategists who take abroader, macroeconomic view,says S&P index analyst HowardSilverblatt.The top-down forecast for 2010earnings is $72.52 a share, basedon a tally of the views of 18strategists and economistsconducted by The Wall StreetJournal—a 21% gain. The gapbetween the camps was muchwider, roughly $40 per share, ayear ago at the height of thefinancial crisis. That suggestsmore clarity and comfort aboutthe 2010 outlook.Economic growth is expectedto be slow next year, suggestingrevenue growth will stay sluggish,as well. Both earnings viewsassume a return to at least nearrecordprofit margins, whichseems a tall order.There are reasons foroptimism. Margins will thicken ifcompanies stay slow to hire. Onetimefederal tax breaks forcorporations, worth $30 billion bysome estimates, also will help.And S&P 500 companies derivenearly half of their earningsoverseas, where growth isexpected to be stronger.Cash-rich companies will likelystart buying back stock again,boosting earnings per share, saysBrian Bethune, chief U.S. financialeconomist at IHS Global Insight.The S&P 500 already trades atabout 15 times the mostoptimisticearnings forecast. Thatisn’t far from its long-termaverage. The next year may be agood one for corporate earnings,but the pressure is on for firms tomeet high expectations.[ Ahead of the Tape ]Source: Standard & Poor's2000 ’02 ’04 ’08 ’10’06$100806040200Profit revivalOperating earnings per share,trailing four-quarter totalNote: 3Q 2009 through 2010 are estimatesFDIC targeRegulator to ask bidders for failedThe U.S. government auctionedoff more than 100 failed banks oother financial institutions in 2009.Now, it wants a bigger cut of the action.In 2010, the Federal Deposit InsuranceCorp. will ask bidders forsome seized banks to offer theagency a chance to profit if the dealis well-received by the buyer’sshareholders.The strategy comes after theFDIC collected $23.3 million thismonth from New York CommunityBancorp Inc. as part of the regionalbank’s recent acquisition ofAmTrust Bank, a Cleveland thriftthat failed. The purchase includedan unusual financial provision insertedby New York Community togive it an edge over rival bidders.The provision entitled the FDICto reap gains from a rally in NewYork Community’s stock price afterit announced the AmTrust purchase.The mechanism paid off for thegovernment when New York Community’sstock price rallied morethan 16% in the two weeks after thedeal, which will substantially expandthe regional bank’s depositbase.The FDIC is now embracing thatprovision, which is a variation of amechanism that it used in the1980s, because shares of a numberof banks recently have rallied afterthe purchase of a failed institution.The FDIC’s deposit-insurancefund, which had $45.2 billion in itscoffers in June 2008, has beenwiped out in the banking crisis andis expected to stay in the red until2012. The agency views the newmechanism as another way tostrengthen its financial position.“We feel that the FDIC shouldparticipate in that increase invalue,” says Herbate director in ththat handles banvision will likelytransactions thbuyers that areThe job of shas intensified ia growing numbgional companiecope with balloFDIC technicallyinstitutions, leavregulatory agencbanks. It does,auctions for thelecting a winnifailed institutionsets.The agency pprovision as onterms that it prfailed banks. Thwinning bids intion based on mBy late 200seized 140 bankclosures is expe2010. Banks havBY ROBIN SIDELSource: WSJ Market DBidding upNov.East WshNov. 6: AcquireCommercial BBig fund losersSome of the mutual-fund world’sbig 2008 losers were back on top in2009.Amid a strong stock-market rebound,many funds hardest hit bylast year’s losses are far outpacingtheir rivals. These include a numberof value-oriented portfolios thattend to focus on out-of-favor stocks,such as Aegis Value, Legg MasonCapital Management Opportunityand Vanguard Capital Value.This year’s results demonstratethe perils of picking mutual fundsbased on short-term track records.Indeed, Forester Value, which wasthe only U.S. diversified stock fundto rise in 2008, fell to the bottomquartile of its large-cap value category,though it still was up 19%through Monday.Excluding leveraged funds, AegisValue was the top-performing U.S.diversified stock fund for the yearthrough Dec. 28, with a 93% return,according to investment researcherMorningstar. The strong run comeson the heels of a dismal 2008, whenthe fund lost 51% and fell near thebottom of its category. It currentlyhas $140 million in assets.The turnaround wasn’t the resultof any big strategy change, saysScott Barbee, the fund’s manager.He notes thathedge funds hit bin 2007 and 200the small and mvored by Aegis Vstocks to bargainstage for this ye“I was themost part, on thBirmiwalOgrowth fund, ishind Aegis Valueter losing 63% laLegg Mason CaOpportunity funlast year, is in thwith an 88% risaccording to MoMany of 200managers are coers willing to passets into theirson Capital Mannity and Aegismore than 40% o10 holdings, accstar. One stock, Dtributedroughpoints to Aegis Vthis year, Mr. BaIn Legg Mafund, bets on bawere big contribformance, saysmanager Samanfund bought prBY ELEANOR LAISEThe Wall Street Journal’s ChinaReal Time Report (http://blogs.wsj.com/chinarealtime) this pastweek looked at finger-pointingafter Copenhagen, a bookdebunking the ‘Chindia’ theory andan unexpected Christmas greeting.Excerpts:Copenhagen aftermath:Hot air swirls aroundThe finger-pointing for themeeting’s failure to reach abinding accord on climate changelives on.The U.S. has taken plenty ofblame, but so has China, accusedby some of obstructing the talksto reach an accord overtechnicalities. Even Gordon Brownhas pointed the finger at China(and the U.S., who togetheraccount for 40% of the world’scarbon emissions).But China isn’t taking this allsitting down. In an unusualindication of the growing mediasavvy of the Chinese regime,China’s consular officials in theU.S. have been forwarding theChinese version of events toAmerican journalists.Accompanying the report bythe state-run Xinhua news agencyabout Premier Wen Jiabao’sefforts, is a note saying: “Istrongly recommend this story tothe U.S. public, for a betterunderstanding of the importanceof Sino-U.S. co-operations on theclimate issue and a clearer view ofthe Chinese stand upon thisissue.”The Xinhua story about Wen’strip to Copenhagen portrays himas a selfless hero, struggling toprotect the interests of poornations and shocked by therudeness of others toward Chinaas he struggled to reach aconsensus.China had portrayed theCopenhagen talks as amake-or-break moment. Manycritics say China’s insistence onleaving out absolute limits is whatgutted the final agreement.With Copenhagen widely seenas a failure, and China as the mainculprit, China’s propagandaworkers are in overdrive trying tospin the story . As climate talksare likely to drag on, there’ll beplenty of chances to fine tune themessage if not the matter.—Shai OsterDisputing ‘Chindia’ theoryClash, not collaboration, is thelikely trajectory for China andIndia, says Belgian politicalscientist Jonathan Holslag.In his book, “China and India:Prospects for Peace” ($37.50,Columbia University Press),Holslag throws cold water on thenotion of “Chindia”—a celebrationof the interdependence of theworld’s two most populousnations.The Chindia theory hassupporters. Optimists point to3,000 years of relations, culturalexchanges and similar aspirationsas reasons to see mutualreinforcement of India and China,as they together provide fuel tothe world economy.However, Holslag doubts thatthe two countries are developing“a division of labor”—India asservice provider and China asmanufacturer. He sees India andChina as rising military rivals notonly with entrenched borderdisputes but also as the majorpowers in a “belt of insecurity.”Holslag says he sees deep“negative mutual perceptions”between Indians and Chinese, aserious trust deficit that limits thelikelihood that pockets ofeconomic and politicalinterdependence will producefriendship.—James T. AreddyWuxi Christmas greetingThis reporter received just oneChristmas greeting card in theregular mail. The interesting partis that the person helping sustainthe dying—but stilltouching—tradition of sendingcards was a Chinese governmentbureaucrat.The card was signed by CaiDagang, director of the ForeignAffairs Office of Wuximunicipality. I don’t recall havingmet Mr. Cai. A several minute stopat the Wuxi railway station on aNanjing-bound train may havebeen my only visit to the city.Of course, Christmas isn’t aholiday in China. So any card is anunexpected pleasure to receive.Mr. Cai’s card (shown below) isboth traditional Christmas andsinified. There’s no claim to havesaved forests or donated tocharity, nor does it flag wave forWuxi. It’s a simple old-timemessage in English: “MerryChristmas & Happy New Year.”Attempts to phone Mr. Caiweren’t successful. The number onthe name card he put in thegreeting connected to a recording.Mr. Cai did email back, andsaid he’d welcome a longer visit toWuxi “rather than just stay at thetrain station a few minutes.”—James T. AreddyThe only greeting card in a reporter’s regular mail was from a Chinese bureaucrat.By Takashi NakamichiTOKYO—Japanese Finance MinisterHirohisa Fujii was hospitalizedearly Monday to rest and undergo examinationsdue to fatigue caused byweeks of work compiling the next fiscalyear’s national budget, a Ministryof Finance official said.The official said Mr. Fujii, 77years old, didn’t have any serioushealth problems, and added that thefinance minister will return to workif necessary.“He seems to be tired after the arduoustask of compiling the budget,”the official said. “His bloodpressure is a little high, and he hasdecided to be hospitalized to rest aswell as to have his health examined.”The official said Mr. Fujii’s lengthof stay hasn’t been determined.Japan’s record 92.299-trillionyen(about $1.011 trillion) nationalbudget for the next fiscal year, beginningApril 1—approved by thecabinet on Friday and expected tobe submitted to parliament nextmonth—contains more fundsaimed at boosting consumer spending,such as payments to familieswith children.The budget has become key tothe administration of Prime MinisterYukio Hatoyama, who has seen asignificant drop in public-opinionpolls amid increasing public uncertaintyover the economy. The consumer-spendingefforts are intendedto revitalize Japan’s sluggishdomestic scene, but economistsworry that it will exacerbateJapan’s already considerable publicdeficit.Mr. Fujii became Japan’s financeminister in September, after theDemocratic Party of Japan defeatedthe Liberal Democratic Party in anAug. 30 election, ending more than50 years of almost unbroken LDPrule.Mr. Fujii has several deputies atthe finance ministry who can handlepolicy decisions in his absence, includingany foreign-exchange-relatedmeasures.—Kenneth McCallumcontributed to this article.Japanese Finance Minister HirohisaFujii attends a meeting last week.Tran Anh Kim, a former Vietnamese army officer, is seen on closed-circuit television in the dock of a provincial court south ofHanoi, where he was sentenced Monday on charges of subversion for his pro-democracy activities.Japan finance minister hospitalizedGetty ImagesBy James HookwayVietnam convicted a formerarmy officer who pushed for democraticreforms of subversion on Monday,sentencing him to 5µ years inprison and sending a stark warningthat the room for political dissent isquickly shrinking in this rigorouslycontrolled Communist state.The brief trial of Tran Anh Kim—the court hearing in northern ThaiBinh province began in the morningand was over by lunch—is the firstin a series of prosecutions againstpro-democracy and human-rightsactivists in Vietnam. Four more people,including prominent humanrightslawyer Le Cong Dinh, werecharged with subversion last weekand potentially face the death penaltyfor allegedly attempting to underminethe state by promotingdemocratic freedoms.Political analysts say the crackdowncomes at a time when hardlinersin ruling Communist Party arerolling back the few freedoms theyallowed as Vietnam’s economy rapidlyexpanded over the past decade.Authorities had often turned ablind eye to criticism and allowed agreater degree of freedom for religiousgroups, as they worked tosmooth Vietnam’s entry into theWorld Trade Organization in early2007.However, Vietnam’s economysuffered a destabilizing bout of inflationin 2008 and its exports werebadly rocked by the impact of theglobal economic crisis. The government’sresponse has been to uprootdissent to prevent Vietnam’s economicproblems from weakeningthe Communist Party’s hold onpower, analysts say. Many expectthe repression to deepen ahead of aparty congress in January 2011. Acongress takes place every fiveyears and is often the focus of conflictbetween the party’s reformistand conservative wings.Mr. Kim, a 60-year-old formerlieutenant colonel, fell foul of thedragnet when authorities accusedhim of joining Bloc 8406, an organizationthat promotes multiparty democracy—anillegal act under Vietnam’sconstitution, which reservespower solely for the CommunistParty. Prosecutors also said Mr. Kimposted pro-democracy articles onthe Internet and joined the outlawedDemocratic Party of Vietnam.During the trial, the AssociatedPress reported that Mr. Kim, whowon three military-service medalsduring the Vietnam War before beingdismissed from the army and expelledfrom the Communist Partyfor alleged financial mismanagement,told the court he stood up forhis beliefs and for campaigningagainst corruption.“I am a person of merit,” the APquoted him as saying. “I did not commitcrimes.”Foreign media and diplomatswere allowed to follow Monday’scourt proceedings by closed-circuittelevision. The presiding judge,Tran Van Loan, said when announcingthe sentence that Mr. Kim hadhelped organize crimes against thestate and cooperated with “reactionaryVietnamese and hostile forces inexile.”Mr. Kim could have faced thedeath penalty, but prosecutorssought a more lenient sentence becauseof his military record. His convictioncame less than a month beforethe trials of the human-rightslawyer, Mr. Dinh, and three other activistsare due to begin.Crackdown in VietnamConviction, sentence of decorated officer sends warning to dissidentsReuters/HandoutWORLD NEWS: ASIA4 THE WALL STREET JOURNAL. Tuesday, December 29, 2009Follow the markets throughout the day with updated stock quotes, news and commentary at WSJ.com/Asia.Also, receive email alerts that summarize the day’s trading in Europe and Asia. To sign up, go to WSJ.com/OnlineTodayCommoditiesPrices of futures contracts with the most open interestEXCHANGE LEGEND: CBOT: Chicago Board of Trade; CME: Chicago Mercantile Exchange; NYBOT: New York Board of Trade; MDEX: Bursa MalaysiaDerivatives Berhad; LIFFE: London International Financial Futures Exchange; LME: London Mercantile Exchange; NYMEX: New York Mercantile Exchange;ICE: IntercontinentalExchange *LME prices as of 12/24/09ONE-DAY CHANGE Contract ContractCommodity Exchange Last price Net Percentage high lowCorn (cents/bu.) CBOT 415.75 7.25 1.77% 712.25 315.50Soybeans (cents/bu.) CBOT 1023.00 15.00 1.49 1,560.00 805.00Wheat (cents/bu.) CBOT 546.00 21.50 4.10 1,029.25 459.00Live cattle (cents/lb.) CME 85.100 0.350 0.41 116.900 78.700Cocoa ($/ton) ICE-US 3,227 -44 -1.35% 3,510 1,994Coffee (cents/lb.) ICE-US 137.05 -2.25 -1.62 188.65 115.00Sugar (cents/lb.) ICE-US 27.20 0.12 0.44 27.32 11.91Cotton (cents/lb.) ICE-US 76.46 2.81 3.82 84.00 49.67Crude palm oil (ringgit/ton) MDEX 2,592.00 38 1.49 3,580 1,487Cocoa (pounds/ton) LIFFE 2,242 11 0.49 2,337 1,310Robusta coffee ($/ton) LIFFE 1,327 -8 -0.60 1,710 1,309Copper (cents/lb.) COMEX 331.50 2.25 0.68 365.00 135.50Gold ($/troy oz.) COMEX 1109.70 4.90 0.44 1,227.50 762.30Silver (cents/troy oz.) COMEX 1752.00 8.00 0.46 2,011.50 1,045.00Aluminum ($/ton)* LME 2,249.00 8.00 0.36 2,283.00 1,288.00Tin ($/ton)* LME 15,850.00 unch. unch. 15,945.00 9,750.00Copper ($/ton)* LME 6,944.00 45.00 0.65 7,100.00 2,815.00Lead ($/ton)* LME 2,327.50 27.50 1.20 2,487.00 870.00Zinc ($/ton)* LME 2,475.00 47.00 1.94 2,475.00 1,086.00Nickel ($/ton)* LME 18,005 255 1.44 21,150 9,475Crude oil ($/bbl.) NYMEX 79.00 0.95 1.22 117.00 47.60Heating oil ($/gal.) NYMEX 2.0913 0.0351 1.71 3.5570 1.3816RBOB gasoline ($/gal.) NYMEX 2.0443 0.0337 1.68 2.1342 1.2304Natural gas ($/mmBtu) NYMEX 5.915 0.229 4.03 12.590 4.550Brent crude ($/bbl.) ICE-EU 77.08 0.77 1.01 145.00 50.00Gas oil ($/ton) ICE-EU 626.75 19.75 3.25 790.00 443.50Source: Thomson Reuters; WSJ Market Data GroupWSJ.comCurrencies London close on Dec. 28PerInAMERICAS Per euro In euros U.S. dollar U.S. dollarsArgentina peso-a 5.4559 0.1833 3.7913 0.2638Brazil real 2.5018 0.3997 1.7385 0.5752Canada dollar 1.5014 0.6661 1.0433 0.95851-mo. forward 1.5014 0.6661 1.0433 0.95853-mos. forward 1.5014 0.6661 1.0433 0.95856-mos. forward 1.5016 0.6660 1.0435 0.9584Chile peso 728.81 0.001372 506.45 0.001975Colombia peso 2935.37 0.0003407 2039.80 0.0004903Ecuador US dollar-f 1.4390 0.6949 1 1Mexico peso-a 18.6066 0.0537 12.9298 0.0773Peru sol 4.1538 0.2407 2.8865 0.3464Uruguay peso-e 28.133 0.0355 19.550 0.0512U.S. dollar 1.4390 0.6949 1 1Venezuela bolivar 3.09 0.323617 2.15 0.465701ASIA-PACIFICAustralia dollar 1.6216 0.6167 1.1268 0.8875China yuan 9.8290 0.1017 6.8302 0.1464Hong Kong dollar 11.1617 0.0896 7.7563 0.1289India rupee 66.8655 0.0150 46.4650 0.0215Indonesia rupiah 13585 0.0000736 9440 0.0001059Japan yen 131.88 0.007583 91.65 0.0109121-mo. forward 131.85 0.007584 91.63 0.0109143-mos. forward 131.82 0.007586 91.60 0.0109176-mos. forward 131.69 0.007594 91.51 0.010927Malaysia ringgit-c 4.9359 0.2026 3.4300 0.2915New Zealand dollar 2.0328 0.4919 1.4126 0.7079Pakistan rupee 120.808 0.0083 83.950 0.0119Philippines peso 66.736 0.0150 46.375 0.0216Singapore dollar 2.0233 0.4942 1.4060 0.7112South Korea won 1682.97 0.0005942 1169.50 0.0008551Taiwan dollar 46.463 0.02152 32.287 0.03097Thailand baht 48.050 0.02081 33.390 0.02995PerInEUROPE Per euro In euros U.S. dollar U.S. dollarsEuro zone euro 1 1 0.6949 1.43911-mo. forward 1.0000 1.0000 0.6949 1.43903-mos. forward 1.0002 0.9998 0.6950 1.43886-mos. forward 1.0005 0.9995 0.6953 1.4383Czech Rep. koruna-b 26.422 0.0378 18.361 0.0545Denmark krone 7.4428 0.1344 5.1720 0.1933Hungary forint 272.69 0.003667 189.49 0.005277Norway krone 8.3321 0.1200 5.7900 0.1727Poland zloty 4.1545 0.2407 2.8870 0.3464Russia ruble-d 42.763 0.02338 29.716 0.03365Sweden krona 10.3838 0.0963 7.2158 0.1386Switzerland franc 1.4881 0.6720 1.0341 0.96701-mo. forward 1.4878 0.6721 1.0339 0.96733-mos. forward 1.4871 0.6724 1.0334 0.96776-mos. forward 1.4858 0.6730 1.0325 0.9686Turkey lira 2.1748 0.4598 1.5113 0.6617U.K. pound 0.8994 1.1118 0.6250 1.60001-mo. forward 0.8996 1.1117 0.6251 1.59973-mos. forward 0.8999 1.1112 0.6254 1.59916-mos. forward 0.9004 1.1107 0.6257 1.5983MIDDLE EAST/AFRICABahrain dinar 0.5425 1.8433 0.3770 2.6526Egypt pound-a 7.9105 0.1264 5.4970 0.1819Israel shekel 5.4432 0.1837 3.7825 0.2644Jordan dinar 1.0185 0.9818 0.7078 1.4129Kuwait dinar 0.4128 2.4227 0.2868 3.4864Lebanon pound 2162.17 0.0004625 1502.50 0.0006656Saudi Arabia riyal 5.3977 0.1853 3.7509 0.2666South Africa rand 10.7785 0.0928 7.4900 0.1335United Arab dirham 5.2856 0.1892 3.6730 0.2723SDR -f 0.9174 1.0901 0.6375 1.5686a-floating rate b-commercial rate c-government rate c-commercial rate d-Russian Central Bank rate f-Special Drawing Rightsfrom the International Monetary Fund ; based on exchange rates for U.S., British and Japanese currencies.Note: Based on trading among banks in amounts of $1 million and more, as quoted by Thomson Reuters.Major stock market indexesStock indexes from around the world, grouped by region. Shown in local-currency terms.Price-to- PREVIOUS SESSION PERFORMANCEearnings ratio* Region/Country Index Close Net change Percentage change Yr.-to-date 52-wk.33 ASIA-PACIFIC DJ Asia-Pacific 123.11 0.89 0.73% 31.5% 32.6%16 Australia SPX/ASX 200 4790.85 Closed 28.7 32.3... China CBN 600 28358.21 436.66 1.56 92.1 88.620 Hong Kong Hang Seng 21480.22 -36.78 -0.17% 49.3 49.920 India Sensex 17360.61 Closed 80.0 82.116 Indonesia Jakarta Composite 2509.692 34.810 1.41 85.2 87.2... Japan Nikkei Stock Average 10634.23 139.52 1.33 20.0 21.6... Topix 914.78 5.39 0.59 6.5 7.0... Malaysia Kuala Lumpur Composite 1272.73 8.79 0.70 45.2 46.716 New Zealand NZSX-50 3205.200 Closed 18.0 19.79 Pakistan KSE 100 9422.23 Closed 60.7 49.714 Philippines Manila Composite 3032.84 8.51 0.28 61.9 61.9... Singapore Straits Times 2855.68 17.98 0.63 62.1 60.411 South Korea Kospi 1685.59 3.25 0.19 49.9 50.821 Taiwan Weighted 8057.49 84.90 1.06 75.5 82.510 Thailand SET 733.71 3.30 0.45 63.1 64.350 EUROPE DJ Stoxx 600 253.20 1.30 0.52 28.6 30.922 DJ Stoxx 50 2590.63 17.74 0.69 25.4 28.0Price-to- PREVIOUS SESSION PERFORMANCEearnings ratio* Region/Country Index Close Net change Percentage change Yr.-to-date 52-wk.62 Euro Zone DJ Euro Stoxx 275.73 1.91 0.70% 23.8% 26.5%20 DJ Euro Stoxx 50 2983.72 26.24 0.89 21.7 24.919 Denmark OMX Copenhagen 313.69 -0.47 -0.15% 38.7 39.020 Finland OMX Helsinki 6361.60 0.07 0.001 17.7 21.919 France CAC-40 3947.15 34.42 0.88 22.7 26.121 Germany DAX 6002.92 45.48 0.76 24.8 27.617 Italy FTSE MIB 23302.56 193.44 0.84 19.7 21.6... Netherlands AEX 336.11 2.51 0.75 36.7 39.6... Russia RTSI 1451.60 1.35 0.09 129.7 125.811 Spain IBEX 35 12023.2 55.7 0.47 30.7 33.315 Switzerland SMI 6591.01 11.03 0.17 19.1 20.6... Turkey ISE National 100 51619.41 -41.93 -0.08 92.2 95.415 U.K. FTSE 100 5402.41 Closed 21.8 25.121 AMERICAS DJ Americas 299.99 0.94 0.31 32.7 39.517 Brazil Bovespa 67989.72 400.86 0.59 81.1 84.213 Argentina Merval 2279.22 29.87 1.33 111.1 111.521 Mexico IPC 32549.04 24.67 0.08 45.4 45.1*P/E ratios use trailing 12-months, as-reported earningsEuropean and Americas index data are as of 12:00 p.m. ET.Sources: Thomson Reuters; WSJ Market Data GroupCross rates U.S.-dollar and euro foreign-exchange rates in global tradingUS$ A$ £ C$ YUAN EURO HK$ RUPEE RUPIAH YEN NZ$ WON RINGGIT PH. PESO S$ S FRANC TW$ BAHTU.S. 1.127 0.625 1.043 6.830 0.695 7.756 46.465 9440.20 91.645 1.413 1169.49 3.430 46.375 1.406 1.034 32.287 33.390Australia 0.887 0.555 0.926 6.061 0.617 6.883 41.235 8377.70 81.330 1.254 1037.87 3.044 41.155 1.248 0.918 28.653 29.632Britain 1.600 1.803 1.669 10.928 1.112 12.410 74.344 15104.31 146.632 2.260 1871.19 5.488 74.200 2.250 1.655 51.659 53.424Canada 0.958 1.080 0.599 6.547 0.666 7.434 44.537 9048.40 87.841 1.354 1120.96 3.288 44.450 1.348 0.991 30.947 32.004China 0.1464 0.165 0.092 0.153 0.102 1.136 6.803 1382.13 13.418 0.207 171.22 0.502 6.790 0.206 0.151 4.727 4.889Euro 1.439 1.622 0.899 1.501 9.829 11.162 66.865 13584.91 131.882 2.033 1682.96 4.936 66.736 2.023 1.488 46.463 48.050Hong Kong 0.129 0.145 0.081 0.135 0.881 0.090 5.991 1217.10 11.816 0.182 150.78 0.442 5.979 0.181 0.133 4.163 4.305India 0.0215 0.0243 0.0135 0.0225 0.1470 0.0150 0.1669 203.17 1.9723 0.0304 25.17 0.0738 0.9981 0.0303 0.0223 0.6949 0.7186Indonesia 0.0001 0.0001 0.0001 0.0001 0.0007 0.0001 0.0008 0.0049 0.0097 0.0001 0.12 0.0004 0.0049 0.0001 0.0001 0.0034 0.0035Japan 0.011 0.012 0.007 0.011 0.075 0.008 0.085 0.507 103.01 0.015 12.76 0.037 0.506 0.015 0.011 0.352 0.364New Zealand 0.708 0.798 0.442 0.739 4.835 0.492 5.491 32.893 6682.72 64.875 827.89 2.428 32.829 0.995 0.732 22.856 23.637South Korea 0.0009 0.0010 0.0005 0.0009 0.0058 0.0006 0.0066 0.0397 8.07 0.0784 0.0012 0.0029 0.0397 0.0012 0.0009 0.0276 0.0286Malaysia 0.292 0.329 0.182 0.304 1.991 0.203 2.261 13.547 2752.24 26.719 0.412 340.96 13.520 0.410 0.301 9.413 9.735Philippines 0.022 0.024 0.013 0.022 0.147 0.015 0.167 1.002 203.56 1.976 0.030 25.22 0.074 0.030 0.022 0.696 0.720Singapore 0.711 0.801 0.445 0.742 4.858 0.494 5.517 33.048 6714.22 65.181 1.005 831.79 2.440 32.984 0.735 22.964 23.748Switzerland 0.967 1.090 0.604 1.009 6.605 0.672 7.501 44.933 9128.90 88.623 1.366 1130.93 3.317 44.846 1.360 31.222 32.289Taiwan 0.031 0.035 0.019 0.032 0.212 0.022 0.240 1.439 292.38 2.838 0.044 36.22 0.106 1.436 0.044 0.032 1.034Thailand 0.030 0.034 0.019 0.031 0.205 0.021 0.232 1.392 282.73 2.745 0.042 35.03 0.103 1.389 0.042 0.031 0.967Source: Thomson Reuters via WSJ Market Data GroupPrice-to-PERFORMANCEearnings Net Year- Three-yr.,yield* ratio* Dows Jones Index Last change Daily to-date 52-wk. annualized2.07% 15 Islamic Market 1985.68 8.65 8.65% 37.7% 0.4% -1.5%2.35 16 Islamic Market 100 2136.00 8.06 8.06 25.2 0.4 -2.39.74 14 Bahrain 120.85 0.00 0.00 -21.3 0.0 -13.82.79 33 Kuwait 196.63 -1.63 -1.63 -12.4 -0.8 -15.92.61 20 Sustainability 1015.32 5.30 5.30 33.9 0.5 -7.22.72 50 Stoxx 600 -p 269.64 2.69 2.69 34.2 1.0 -8.94.74 17 Stoxx Select Div 30 -p 1781.54 15.77 15.77 32.1 0.9 -21.23.98 23 Euro Stoxx Sel Div 30 -p 2117.96 21.83 21.83 32.7 1.0 -16.51.70 30 DJ U.S. TSM 11646.47 23.65 23.65 33.7 0.2 -6.75.21 12 U.S. Select Dividend -d 659.32 0.98 0.98 18.3 0.1 -9.94.32 U.S. REIT 151.34 1.72 1.72 36.5 1.1 -17.0DJ-UBS Commodity -p 138.03 0.73 0.73 24.4 0.5 -6.1MSCI indexesDeveloped and emerging-market regional and country indexesfrom MSCI Barra as of December. 28, 2009Price-to-LOCAL-CURRENCYDividendearningsyield ratio Morgan Stanley Index Last Daily YTD 52-wk.2.50% 25 ALL COUNTRY (AC) WORLD* 299.52 -0.04% 31.6% 36.1%2.50 26 World (Developed Markets) 1,171.56 -0.05 27.3 31.21.90 World Small Cap 191.04 -0.01 42.3 50.72.60 22 Kokusai (World ex-Japan) 1,161.10 ... 30.1 33.33.10 26 EAFE 1,572.85 -0.11 27.1 34.62.20 20 Emerging Markets (EM) 974.20 0.03 71.8 84.92.60 25 AC ASIA PACIFIC EX-JAPAN 406.92 ... 64.5 78.92.10 25 AC Far East ex-Japan 440.93 0.01 61.7 77.91.80 Japan 569.06 -0.52 7.4 10.41.90 20 China 63.55 ... 55.8 72.10.90 39 China A (China Domestic) 3,252.08 -0.24 87.5 87.12.60 23 Hong Kong 9,996.09 ... 52.5 58.21.00 21 India 705.33 ... 91.0 103.71.10 24 Korea 479.75 ... 56.3 60.62.40 21 Malaysia 467.02 ... 45.4 47.23.10 17 Singapore 1,587.84 ... 59.3 61.42.70 Taiwan 288.30 -0.03 66.3 72.13.10 20 Thailand 299.08 0.51 61.6 80.24.00 25 Australia 984.96 ... 28.7 27.65.30 16 New Zealand 86.43 ... 13.8 11.51.90 32 US BROAD MARKET 1,250.64 ... 27.3 29.33.40 17 EUROPE 87.63 ... 26.2 21.2*Twenty-three developed and 26 emerging marketsSource: MSCI BarraReuters Group PLC is the primary data provider for several statistical tables in The Wall Street Journal, includingforeign stock quotations, futures and futures options prices, and foreign exchange tables. Reuters real-time data feedsare used to calculate various Dow Jones Indexes.*Fundamentals are based on data in U.S. dollar. Footnotes: c-in local currency. d-dividends reinvested. p-previous day. Note: All data as of 11:30 a.m. ET.Source: DowJones IndexesDow Jones and Dow Jones Stoxx IndexesPrice-to-PERFORMANCEearnings Net Year- Three-yr.,yield* ratio* Dows Jones Index Last change Daily to-date 52-wk. annualizedDJ Global Index 228.20 1.18 1.18% 35.7% 0.5% -6.4%1.89% 21 Global DOW 1989.12 6.99 6.99 32.8 0.3 -2.42.34 Asia/Pacific 600 115.27 0.85 0.85 21.3 0.8 -7.71.76 15 Emerging Markets 278.10 2.64 2.64 80.7 1.0 3.42.12 33 Asia/Pacific 123.11 0.89 0.89 32.6 0.7 -5.52.38 14 Asia/Pacific ex-Japan 310.26 1.90 1.90 70.8 0.6 0.42.53 22 Southeast Asia 158.11 1.57 1.57 78.8 1.0 2.40.83 30 CBN China 600 -c 28358.21 436.66 436.66 88.6 1.6 23.10.85 33 Shanghai 377.93 5.83 5.83 88.3 1.6 23.20.58 47 Shenzhen 410.73 6.47 6.47 111.9 1.6 30.32.21 19 China Offshore 50 4026.34 11.36 11.36 52.8 0.3 5.58.65 9 Australia LPT -c, d 1134.31 0.00 0.00 2.4 0.0 -22.3GLOBAL MARKETS LINEUPTuesday, December 29, 2009 THE WALL STREET JOURNAL. 29>7China Real TimeReport:News and analysis onChina, covering the hottesttopics of the day includingbusiness, finance, law, policy,economics and culture.Property:A weekly look at theregional and globalproperty markets.Wealth:An Asia-specificfeature focusedon earning andenjoying wealth.10 THE WALL STREET JOURNAL. Tuesday, January 5, 2010CAREER JOURNALRewards for extrawork come cheapWith raises scarce, managers get creativeFacing a deadline to deliversoftware to a customer, RockwellCollins Inc. managerJenny Miller persuaded 20 engineersto work Thanksgiving weekend.Her only lures were free lunchand $100 gift cards.Ms. Miller’s feat is part of a dailystruggle for managers now: figuringout how to squeeze more work fromlean, recession-battered staffs.As the U.S. economy tentativelyrecovers, chief executives are tryingto ramp up growth, but not hiring.The economy grew 2.2% in the thirdquarter and layoffs have slowed, butcompanies continue to shed jobs.And employers are hiring at theirslowest pace since the Bureau of LaborStatistics began tracking in2000.Managers can’t rely on the traditionalcarrots of raises or promotions.Employers plan meager 2.8%raises in 2010, after 2% bumps in2009, according to consulting firmTowers Watson. And the static jobmarket, which includes older workerswho have delayed retirement aswell as younger employees unable tofind better opportunities elsewhere,hasn’t created many openings formanagers to award promotions.At companies from Rockwell Collinsto Ford Motor Co. and Sanofi-Aventis SA, managers are reachingdeep into their toolbox to coax moreproductivity from salaried, nonovertimestaffers. They’re unleashing abevy of cheap rewards, such aspraise, thank-you notes and giftcards. They’re also scrutinizing employees’duties to nix unnecessarytasks, freeing staffers for higher-impactwork.Rockwell Collins laid off 8% of itswork force, or 1,600 people, lastJanuary. As business has stabilized,the aerospace electronics company,based in Cedar Rapids, Iowa, hasstarted to hire again, but slowly.Ms. Miller manages 170 engineersin the commercial systems engineeringunit, which makes computersystems for flight decks. Shesays on a per-person basis, her employees’workload has increased byabout 15% over the past year.The challenge is “stretching mein ways I never had to” before, shesays.Some employees balk at workinglonger hours without extra pay. Ms.Miller has been able to give giftcards but not raises; Rockwell Collinshad a salary freeze in effect untilDecember. Ms. Miller tries to assureemployees the extra hours aretemporary and tells them “when themarket turns around we’ll be betterpositioned because of the effort,”she says.Many engineers had been workinglong hours in November to makethe Dec. 1 deadline to finish testingflight-deck software, but Ms. Millerstill feared they wouldn’t finish ontime.The company decided againstwork on Thanksgiving Day itself, butMs. Miller emailed the departmentseeking volunteers to work Friday—acompany holiday—Saturdayor Sunday. About 20 people signedup, despite not being paid overtimeor getting compensatory days off.They met the deadline, and got the$100 gift cards.Without the ability to give raisesover the past 12 months, SteveNieuwsma, a Rockwell Collins divisionvice president, has given outtwice as many gift cards as lastyear, ranging from $25 to $500. “It’snot so much the money,” he says.But he believes employees appreciate“the fact that someone walkedup to them and said, ‘Thank you,you did a good job.”’Cheap recognition is a well-utilizedcurrency at many companies.Craig Chiulli, who supervises 90managers and salespeople in Ohiofor Sanofi-Aventis, emails employeesto recognize even small accomplishments,and copies higher-ups.After the drug-maker shed 10% ofits U.S. sales force this year, his employeesare handling more work perperson, he says.He recalls emailing one salesmanwho had landed a meeting with apotential new customer, telling himhow much his “extra efforts” wereappreciated.He copied his vice president andplans to introduce the two in January.Managers are also scrutinizingemployees’ tasks to prioritize higher-impactwork. At Ford’s Americasdivision, President Mark Fieldsasked his deputies in early 2009 toscour employees’ routines for “discretionarywork.” They surveyed departmentsabout their use of internalreports, and killed or reducedunder-utilized ones. For instance, a“report card” on Ford’s marketshare, costs and quality performancenow goes out quarterly insteadof monthly.With staffs lean, “there’s moreprioritizing—you can’t stuff 10pounds of flour in a five-poundsack,” Mr. Fields says.BY DANA MATTIOLIFord’s Mark Fields, shown in Los Angeles in December, had his deputies survey departments about their use of internalreports so they could kill or reduce under-utilized ones.FordSome managers who can’t give raises give gift cards to recognize extra efforts.Associated PressCAREEROPPORTUNITIESCAREERS Tuesday, January 5, 2010 THE WALL STREET JOURNAL. 23MARKETSRecovery hints:rhodium, trainsAnalysts track obscure barometers of growthAs stock and bond investors debatewhether the U.S. economic recoveryhas legs, some analysts arelooking beyond the standard flurryof data for evidence.They are focused on demand forrelatively obscure metals and fuels,such as rhodium—which is used incar parts and is considered by someas a barometer of auto demand—aswell as diesel fuel. Prices of both arereaching new highs, leading some tobelieve a real recovery is takinghold.Unlike gold and platinum, specialtymetals like rhodium aren’ttraded on commodity exchanges,making it hard for hedge funds andother investors to buy them as speculativebets. Prices are set by producersand users of the metal, linkingthem more closely to realdemand.As of Friday, rhodium fetched$2,360 a troy ounce, up 60% sincemid-October.“We’ll keep watching rhodium.These smaller metals are very sensitiveto changes in demand, makingthem a good indicator of what ishappening out there,” said TheresaGusman, head of commodities at DBAdvisors, the asset-managementarm of Deutsche Bank AG.About 80% of the metal is usedby auto makers in catalytic converters.Rhodium’s strength bodes wellfor the U.S. auto and auto-relatedindustry, which constitutes 4% ofthe country’s gross domestic productand employs 10% of the totalwork force.Many bulk commodities alsohave gotten pricier recently. Pricesof iron ore, one of the main materialsused to produce steel, rose lastWednesday to the highest level of2009 in China, the biggest buyer.Coal prices jumped 6.4% at the NewYork Mercantile Exchange in December.Other investors are looking atrail traffic in North America, whichshowed a 4.6% rise in December, thefirst year-to-year increase afterslumping for more than a year, accordingto Dahlman Rose & Co.Rail carloads reached 714,015units, up from a year ago but still14% lower than in the same week in2007.An increase in rail volume is aprecursor of rising economic activity,as manufacturers, constructioncompanies and car dealers areamong the top railway shippers. Analystsare looking to see whetherthe increases continue.To be sure, the relative illiquidityof markets for specialty commoditiescan cause swings in prices.Rhodium prices, for example, tumbled20% in early December afternearly doubling in two months. Still,the metal recouped most of thoselosses recently.Energy use, which powers economicgrowth, also has shown signsof life.Prices of “bunker fuel” set newhighs in recent days, pointing toburgeoning demand from industrialusers. Bunker fuel, also known asresidual oil, is the cheapest liquidfuel and not traded as a financial assetlike crude oil or natural gas. Becauseof its very high sulfur content,residual oil is used only by powerplants and large ships that are ableto process it.Residual fuel is priced as a discountto the price of Brent crude oil,a market benchmark, and the spreadhas recently narrowed to $3.50 abarrel, the lowest in at least threeyears, according to Platts, a subsidiaryof McGraw-Hill Cos.Barclays Capital analysts found asimilar cause for optimism in themarket for diesel fuel. China, Indiaand Japan all reported a rise in dieseldemand in recent months, andU.S. diesel inventories continued todecline.Diesel is another cheap distillateand is widely used by trucking fleetsand to power farming machinery.“The arrival of the first concertedsigns of a distillate recovery”bodes well for global oil demand totip back to positive territory in thefirst quarter of 2010, Barclays analystswrote.BY CAROLYN CUIRail volume is one way to gauge economic activity. Above, a Burlington Northern Santa Fe freight train.Bloomberg NewsChina opens more bonds to insurance companiesSHANGHAI—China’sinsuranceregulator said insurance companiescan now buy triple-A-rated nonguaranteedbonds on the domestic interbankmarket, broadening the cashrichfirms’ investment channels andcontinuing the development of thecountry’s relatively young corporatedebt market.The move also will help financeChina’s four trillion yuan ($585.8 billion)economic stimulus, analystssaid. China has gradually been looseningrestrictions on insurance companies’investment in corporatebonds in recent years.In October, the China InsuranceRegulatory Commission raised theupper limit of insurers’ investmentin corporate bonds to 40% of theirtotal assets from 30%, and allowedinsurers to buy corporate bonds issuedin Hong Kong by large stateownedenterprises and domesticbusinesses listed on the city’s stockexchange with at least a Triple-Brating.The widening investment channelswill help satisfy an increasingdemand for corporate bonds by domesticinsurers, whose premium incomehas been rising robustly.China’s insurance companies collected1.022 trillion yuan in premiumsfrom January through Novemberlast year, 11.7% more than in thesame period of 2008, the state-runXinhua news agency reported in December.The move to broaden domesticinsurers’ access to the corporatebond market could help them raisetheir investment returns becausebonds that aren’t guaranteed typicallycarry higher yields than doesgovernment debt, said Chen Xumin,deputy director of the trading departmentof midsize Nanchong CommercialBank.An insurer’s investment in a nonguaranteedbond can’t exceed 20%of the bond issuer’s net assets, theinsurance regulator said in a statementon its Web site on Friday.Nonguaranteed bonds are debtwhose principal and interest aren’tguaranteed by another companyother than the issuer itself. In China,these securities consist mainly ofcorporate medium-term notes supervisedby the country’s central bank.Outstanding medium-term notesin China, with a typical maturity ofthree to five years, totaled 806.8 billionyuan at the end of November,accounting for 34.7% of the totalcorporate debt traded on the interbankmarket, according to the latestdata on the official Chinabond Website.China also has been opening itsnascent corporate bond marketwider to more-experienced foreigninvestors in recent years. In January2009, China’s banking regulatorstarted to allow foreign banks totrade and underwrite corporatebonds on the interbank market. Lastmonth, China gave the green light toBank of Tokyo-Mitsubishi UFJ’sChina banking unit to issue yuan-denominatedcorporate bonds on theinterbank bond market.It was the first time a foreigncommercial bank has received approvalto sell bonds in China, but itwas unclear how much the Japanesebank plans to raise or when it plansto sell the bonds.—Wang MingPhilippines, Indonesia and Vietnam prepare $7 billion in bondsMANILA—The Philippines, Indonesiaand Vietnam hope to sell asmuch as a combined $7 billion ofnew debt in the coming weeks andbe the first sovereign offerings outof Asia to hit the international marketsince October.“This is going to be a very busymonth for sovereign issuers,” said asyndicate banker in Hong Kong.The Philippines, Asia’s most activeoffshore sovereign issuer, hasopened the market for bonds in socalledG3 currencies—U.S. dollars,euros or yen—for Asian borrowerseach year for the past few years.This year, however, it will have thecompany of similarly rated peers, aprospect that could push up borrowingcosts as the three issuers vie forinvestors.But with investors flush withcash and looking to put the moneyto work quickly in the new year, thesovereigns will likely find willingbuyers, with little risk of a spike inyields. What’s more, the deals havebeen well-publicized, eliminatingthe element of surprise that canhurt bond prices in the secondarymarket, which serve as a guide forpricing new issues.“I don’t think there’s a great dealof anxiety about competition,’ ‘ saidTim Condon, head of research forAsia at ING.The Philippines, the first in linefrom Asia, is looking to raise asmuch as $2 billion in internationalbonds this week. While the detailsaren’t final, the offering could includeeuro-denominated paper,given that it has €600 million ($859million) in bonds maturing in February.It has sought to cap its commercialoffshore borrowing at $2 billionfor this year, but many in the marketsay it’s possible that the expectedJanuary fund raising won’tbe its last of this year.Vietnam has hired Barclays Capital,Citigroup and Deutsche Bankto sell as much as $1 billion inbonds with maturity of 10 years orlonger, said a person familiar withthe deal. The offering could emergenext week.Indonesia has hired BarclaysCapital, Citigroup and Credit Suisseto sell between $3 billion and $4billion in bonds that could come inmore than one part, said a personfamiliar with this deal. The likelymaturities are 10 years and 30 yearsand will be denominated in a mix ofeuros and dollars, the person said.Malaysia is also said to be lookingto return to the internationalmarket after a break of severalyears.While the market is likely to absorbthe fresh issuance relativelyeasily, some investors are wary thatthe Asian governments could comeback to the market later this year.The prospect of widening budgetdeficits, combined with the risk ofanother slump in global growth thatwould require more fiscal support,raises questions over whether governmentsin the region would beable to stick to their borrowingplans.“The more important question ishow often they will come back tothe market this year,” said ING’s Mr.Condon.BY DITAS LOPEZ‘This is going to be a verybusy month for sovereignissuers,’ said a syndicatebanker in Hong Kong.Careers:Feature stories tohelp readers selectand guide theircareers.

Opinion: Review & OutlookTake sides on the major issues in global business, economics, politics and culture, with the goal of influencingpolicies and events to promote freedom and prosperity.THE WALL STREET JOURNAL. Monday, January 11, 2010BUSINESS & FINANCEits profit expectation0 jobs, but sees a gradual economic recovery following a boost during holidays-transportation analystpital Markets in Richheyhave more visibilthanwhen 2009 began.ey wouldn’t have beena statement like that,”r goods shipped by air% higher in Novemberw point in Decemberrling said. “A lot of thelet their inventories, and they suddenly reygosh, we’re going tostmas,’ ” Mr. Sterlingorder to get the goodsfrom Asia, they had tot.”irman and Chief ExeckW. Smith last monthconomy had reached at” as the company repin holiday shipping.x also issued a tepidts fiscal third quarter,Dec. 1.ts fourth-quarter earnhecompany declinediscuss shipments over, its peak season, orakdown of how muched earnings predictionth versus cost cuts.composite trading Fri-New York Stock Exshareswere up $2.76,60.17.uts will be made byl come from the comementand administrapartof a restructuringtions that will reduces number of regions tove, UPS said. As a redit will incur a onen2010 that will be off-ReutersUPS said its U.S. and international small-package shipping businesses contributed to its increased profit projection.set by savings in its U.S. business. other jobs will be cut through attrition.The company has no plans to Nate Brochman, an analyst withdelivery business.Last year, UPS cut 13,000 jobs inresponse to a shipping slump, but close operating facilities or reduce William Blair & Company LLC inUPS spokesman Norman Black said its number of drivers.Chicago, called the move to putthe latest reductions were longplannedand aren’t related to the re-break from tradition at the 102- areas an “evolutionary change” for aThe reductions mark another fewer managers in charge of biggercession. UPS has 340,000 employees year-old company, where managers company where management jobsin the U.S.held virtual tenure until retirement. have long been regarded as safe, career-longpositions. “Time will tell if“We’ve come to realize that with But since its initial public offering intechnology and management systems,we can manage larger geo-the biggest in U.S. history at the “In the downturn, UPS has been1999, which raised $5.47 billion as it’s a true culture change,” he said.graphic areas than ever before,” Mr. time, UPS’s stock has lagged behind forced to make tough decisions, butBlack said. Of the 1,800 positions, expectations amid high labor costs, it’s also given them the opportunity1,100 employees will be offered early-retirementpackages, while some industry growth of the U.S. packageentway,” herecord fuel prices and diminishing to look at their business in a differ-said.its offshore wind energy.K. wind turbine in 2009.ts of capacity. Friday’sis for four timeswatts—and will requireon of about 6,400 turenext 10 years.ion of the Round Threeue to start in 2014 atof the task has beenth the development ofl and gas in the 1970s,tionized the U.K.’s enpe.ase is essential if theieve its green targets,which are some of the most ambitiousamong industrialized countries.Britain is committed to producing15% of its energy fromrenewable sources such as wind, solarand wave power by 2020. Currently,Britain generates 2.4% fromsuch sources.Each Round Three project willinvolve banks of large turbines anchoredto the seabed that rotate inthe moving air and power an electricgenerator. The turbines will betaller than 40-story skyscrapers.Each blade on the turbines will extendabout 6 meters. Also, thesesites generally are farther from landand in much deeper waters thanthose awarded earlier.Some analysts say such enormouswind farms, far off in thestormy waters of the North Sea, remaina risky investment, given theirsize and the technical challengesposed by their construction. It isalso harder and more costly tomaintain and repair wind farms thatare out at sea than those onshore.Meanwhile, costs for constructingwind turbines have escalated inrecent years, roughly doubling from£1.5 million ($2.4 million) per megawattin the first-round projects to£3.1 million for Friday’s round, accordingto the BWEA. Small windpowerprojects have been delayed inthe U.K. as investors waited for thegovernment to increase its financialsupport for the sector.But a senior official at the U.K.’sCrown Estate, which owns the seabedout to the 12-nautical-mile territoriallimit around the country, saidthat having a manufacturing andsupply base in the U.K. would makethe projects cheaper to build.“Once the supply chain and thewhole industry is mobilized, it willforce the pace of development, justlike it did in the North Sea oil andgas sector,” said Rob Hastings, theCrown Estate’s director of marineestate.The project wouldcover a quarter ofthe country’selectricity needs.The government’s claims that expandingoffshore wind capacitycould create thousands of green jobsin the U.K. have been met with skepticism.Currently, most parts forwind power, such as towers, bladesand control systems—are producedin continental Europe.Successful bidders in the ThirdRound include utilities such as RWEAG and E.On AG of Germany; U.K.energy suppliers Centrica PLC andScottish & Southern Energy PLC;Iberdrola SA of Spain; and Vattenfallof Sweden.Fast Retailingreports profit,raises outlookBY KAZUHIRO SHIMAMURATOKYO—Fast Retailing Co. onFriday reported a 57% jump in itsfiscal first-quarter net profit andraised its profit and sales projectionsfor the full year on strongsales of fall season clothing, newstore openings and growing overseassales.The company, which sells theUniqlo clothing brand, said its netprofit in the three months endedNovember climbed to 34.85 billionyen ($373.8 million) from a yearearlier, while sales grew 40% to263.46 billion yen.Fast Retailing revised upwardthe earnings outlook it announcedthree months ago. The company expectsnet profit for the fiscal yearending August at around 67.5 billionyen, up from an original 62 billionyen estimate, and sales at around820 billion yen, up from 798 billionyen. In the fiscal year ended August2009, the company posted net profitof 49.8 billion yen and sales of685.04 billion yen.The retailer opened 33 newstores and shut 11 stores during thequarter, increasing its total numberof stores to 792. Of the 33 newstores, 10 were large shops.The company’s earnings resultsare based on Japanese accountingstandards.Monday, January 11, 2010 THE WALL STREET JOURNAL. 11TSooner or later the U.S. economicrecovery will start creating newjobs, we promise. But it sure isturning out to be a long, agonizingwait. The economy has been growingfor at least six months, amid high productivitygrowth and rebounding corporateprofits, yet employers still shed anet 85,000 jobs in December.The jobless rate remained at 10%, but15.3 million Americans are out of work.Employers still appear to be on strike,not laying off as they were in the earlypart of 2009, but not hiring new workerseither. The 10% rate would havebeen even higher had the civilian laborPOPINION: REVIEW OUTLOOKhe Obama Administration has withgood reason taken flak for its approachto terrorism since theChristmas Day near-bombing over Detroit.So permit us to laud an antiterrorsuccess in the Commander in Chief’s firstyear in office.Though you won’t hear him brag aboutit, President Obama has embraced andramped up the use of unmanned aerialvehicles, or drones. As tactic and as atechnology, drones are one of the mainU.S. advantages that have emerged fromthis long war. (IEDs are one of the enemy’s.)Yet their use isn’t without controversy,and it took nerve for the WhiteHouse to approve some 50 strikes lastyear, exceeding the total in the last threeyears of the Bush Administration.From Pakistan to Yemen, Islamic terroristsnow fear the Predator and itscousin, the better-armed Reaper. So docritics on the left in the academy, mediaand United Nations; they’re callingdrones an unaccountable tool of “targetedassassination” that inflames anti-Americanpassions and kills civilians. At somepoint, the President may have to defendthe drone campaign on military and legalgrounds.The case is easy. Not even the criticsdeny its success against terrorists. Ableto go where American soldiers can’t, thePredator and Reaper have since 9/11killed more than half of the 20 mostwanted al Qaeda suspects, the Uzbek, Yemeniand Pakistaniheads of alliedgroups and hundredsof militants.Most of those hitswere in the lastfour years.“Very frankly,it’s the only gamein town in terms ofconfronting or tryingto disrupt the alQaeda leadership,” CIA Director LeonPanetta noted last May. The agency’s owntroubles with gathering human intelligencewere exposed by last week’s deadlybombing attack on the CIA station nearKhost, Afghanistan.Critics such as counterinsurgencywriters David Kilcullen and Andrew Exumallege that drones have killed hundreds,if not thousands, of civilians. The U.N.Human Rights Council’s investigator onextrajudicial executions, Philip Alston,has warned the Administration that theattacks could fall afoul of “internationalhumanitarian law principles.”Civilian casualties are hard to verify,since independent observers often can’taccess the bombing sites, and estimatesvary widely. But Pakistani government aswell as independent studies have shownthe Taliban claims are wild exaggerations.The civilian toll is relatively low, especiallyif compared with previous conflicts.Never before in the history of air war-resident Obama did right by Taiwanlast week, allowing the deal, thanks to political bickering ineventually only offered about half of thesale—over Beijing’s loud protests—ofsophisticatedquest to Congress forWashington and Taipei. The formal re-antimissile batteries tothe sale was only submittedin Octoberthe island democracy.We’ll take that as a sign Obama sells2008.that there’s a limit to arms to an ally.Meantime, the People’sLiberation Armyhow far the Administrationis willing to go tohas more than 1,000improve relations withmissiles pointed at Taiwan’s23 million people, and the Penta-China at the expense of America’s democraticallies.gon says it is adding about 100 missilesThe Bush Administration originally every year. Then there are the over 60proposed the sale of an advanced Patriot submarines China has patrolling the waters,plus its development of cyberwar-ballistic missile interceptor system, orPAC-3, in 2001, as part of a package that fare capabilities and other asymmetricalincluded helicopters, submarines and threats. Taiwan itself can’t possibly wintechnology upgrades. But Taiwan was an all-out war against China, but withThe Drone WarsEuropean Pressphoto Agencyfare have we beenable to distinguishas well betweencombatants and civiliansas we canwith drones. Even ifal Qaeda doesn’t issueuniforms, theremote pilots cancarefully identifytargets, and thenuse Hellfire missilesthat cause far less damage thanolder bombs or missiles. Smarter weaponslike the Predator make for a moremoral campaign.As for Mr. Alston’s concerns, the legalcase for drones is instructive. PresidentBush approved their use under his Constitutionalauthority as Commander inChief, buttressed by Congress’s Authorizationfor the Use of Military Forceagainst al Qaeda and its affiliates after9/11. Gerald Ford’s executive order thatforbids American intelligence from assassinatinganyone doesn’t apply to enemiesin wartime.International law also allows states tokill their enemies in a conflict, and to operatein “neutral” countries if the hostsallow bombing on their territory. Pakistanand Yemen have both given their permissionto the U.S., albeit quietly. Even ifthey hadn’t, the U.S. would be justified inattacking enemy sanctuaries there as amatter of self-defense.The Long Jobs Waitforce not shrunk by 661,000 workers in economy that rewards ever-higherDecember. Only 64.6% of working age skills.Americans are now in the labor force, The long-term danger is that thethe lowest in 25 years.U.S. labor market becomesmore like Eu-The so-called total joblessrate—which includesdiscouragedwho have jobs doingPolicy uncertainty rope’s, with workersworkers no longer hurts hiring.fine while millions oflooking—ticked up toothers can’t get fulltimework. Congress17.3% from 17.2%.Perhaps most dismaying is that hasn’t helped this trend by reducingnearly four in 10 (39.8%) of the jobless the incentive to job hunt by extendinghave been unemployed for six months jobless benefits—another example, likeor more. The longer these Americans the minimum wage, in which Congressstay out of the workplace, the more does tangible harm in the name oftheir career prospects will suffer in an compassion.A Taiwan LessonWho gets on the drone approved “killlists” is decided by a complex interagencyprocess involving the CIA, Pentagon andWhite House. We hear the U.S. could havetaken out the radical cleric Anwar al-Awlakiafter his contacts with Fort Hoodshooter Major Nidal Hassan came to lightin November, missing the chance by notauthorizing the strike. Perhaps al-Awlaki’sU.S. citizenship gave U.S. officialspause, but after he joined the jihad he becamean enemy and his passport irrelevant.Tellingly, after the attempted bombingover Detroit, the Administration rushedto leak that Yemenis, with unspecifiedAmerican help, might have killed al-Awlakiin mid-December in a strike on alQaeda forces. Al-Awlaki, who also wasalso in contact with the Nigerian bomberon Northwest Flight 253, may have survived.While this aggressive aerial bombingis commendable against a dangerous enemy,it also reveals the paradox of PresidentObama’s antiterror strategy. On theone hand, he’s willing to kill terrorists inthe field, but he’s unwilling to hold thesesame terrorists under the rules of war atGuantanamo if we capture them in thefield. We can kill them as war fighters,but if they’re captured they become commoncriminals.Our own view is that either “we are atwar,” as Mr. Obama said on Thursday, orwe’re not.We can’t blame employers for theircaution. With so much policy uncertaintyout of Washington and the statecapitals, no one can be sure what theywill pay for energy (rising oil prices,cap and trade) or new regulation (antitrust),how high their taxes will rise,and how much each new employee willcost (health care). In this kind of world,employers will wait as long as possibleto add new workers.With trillions of monetary stimulusin the pipeline, the economy will growand employment will rise in 2010. Thesooner Congress stops doing damage,the faster that will be.U.S. help it can make the costs of a Chineseattack too prohibitive to contemplateseriously.The argument against U.S. arms salesis that it clouds prospects for better relationsbetween Taiwan and the mainland.But as Taiwanese President Ma Yingjeou—avocal advocate for a rapprochementwith Beijing—has argued, the armssales help the Taiwan-China dialogue byallowing Taipei to negotiate from a positionof strength. Washington’s own relationshipwith Beijing has hardly sufferedover the three decades in which the U.S.has been selling arms to Taipei underterms of the 1979 Taiwan Relations Act.None of this has prevented China fromdenouncing the deal, as it has previoussales. A Chinese government spokeswomansaid Thursday the PAC-3 salewould cause “serious harm.” China isalso worked up about Taiwan’s request tobuy 66 F-16s to bolster its aging airforce. The latter is still outstanding, as isabout $6 billion worth of items that theBush Administration didn’t put forwardfor sale, such as Black Hawk helicopters,minesweepers and diesel submarines.President Obama would be wise to approvethose sales. As he has learned inrecent months, his overtures toChina—including his refusal to meet withthe Dalai Lama—haven’t been reciprocatedin better cooperation on North Korea,Iran and other vital U.S. interests.The sooner Beijing learns this Administrationwill stand up for its friends, thefriendlier it will itself become.8< The Wall Street Journal Asia | Content Guide

In DepthSettle down to enjoy a story told with the Journal’s polished style. Whether it’s an in-depth look at a business,an investigative piece by a foreign correspondent or a study of the issues involved in a political debate, this is thefeature that will help you understand the whole story.Agence France-Presse/Getty Images14 THE WALL STREET JOURNAL. Wednesday, January 13, 2010Small firms cast large cloudover a European comebackBy Alessandra GalloniAnd Sebastian MoffettVarese, ItalyRAFFAELLA Prestinoni’s sweaters businessin this northern Italian industrialtown used to be one of the millions offamily-run companies anchoring the Europeaneconomy.Today, companies such as hers threatento dent the Continent’s recovery.Heavily dependent upon hard-to-get bankloans and shut out of Europe’s embryonic corporate-bondmarket, small and medium businesseshere have been hit hard. The result:widespread insolvencies, job losses and acloud over Europe’s growth prospects in2010.Of the small and medium European firmsthat applied for a bank loan in the first halfof 2009, 43% reported a drop in the availabilityof credit over the previous half-year,while just 10% cited an improvement, accordingto the most recent figures from the EuropeanCentral Bank.In the wake of the biggest global financialcrisis in decades, the yelps from small businessesin Europe are similar to those nowheard in America. Lending to small U.S. businessesis a large and growing political issue,as small companies complain to Congress,the White House and the Federal Reservethat they aren’t able to get loans on favorableterms.A monthly survey by the National Federationof Independent Business, a U.S. smallbusinessgroup, showed that of companieswanting to borrow money in November, a net15% reported more difficulty getting a loanthan in their previous try.As important as small businesses are tothe U.S. economy, the problem may be evenmore acute in Europe. Companies with fewerthan 250 workers account for 70% of the private-sectorwork force in the EuropeanUnion, compared with 49% in the U.S., accordingto EU figures. Business also relies moreon banks in Europe than in the U.S. where, atleast for bigger firms, capital markets are animportant source of finance.IN DEPTHWhen Ms. Prestinoni couldn’t get a bankloan, she sold two family homes and appliedfor a government-backed debt-relief program,aimed specifically at small firms. Thatmade it possible to pay suppliers and help delaypayment on an Œ80,000 ($115,000) industrialknitting machine. After sales of her coloredcrew necks dropped 15% last year, however,“I’m bracing for this year with terror,”she says.Not all small businesses are affectedequally by the crunch. The German economydepends on the so-called Mittelstand smalland medium firms that employ some 70% ofthe country’s private-sector work force. Butunlike in France, Italy and Spain, Germanfirms piled on less debt over the years, so aresuffering less now.European governments have introducedseveral measures targeted at small business.France and Germany have named creditczars to bolster contacts—and credit lines—between banks and small firms.In the U.S., the Treasury Department is devisinga plan to offer government capital toThe French governmentslashed value-added tax onrestaurants in July, hoping to lurecustomers back into eateriessuffering from the downturn.Credit crunch accelerated downtrend and the companies lacked financial and marketing heft to seek new foreign marketssmall and midsize banks—which are reluctantto take it because of the stigma attached—bycasting the aid as a measureaimed at small-business lending.In Europe and the U.S., bankers say examinersare scrutinizing loans closely. Andmany small businesses just aren’t good risksgiven the fragility of the economy.Banks deny they have left this part of corporateEurope in the lurch. “As bankers, it isin our interest to lend money,” says SéverinCabannes, co-chief executive of France’s ofSociété Générale. Banks, including Intesa Sanpaoloof Italy and France’s BNP Paribas, haverecently made explicit commitments to extendcredit to small firms.The credit crunch has accelerated a downwardtrend for Europe’s small firms. Over thepast decade, many have stayed in sectors,such as textiles and shoemaking, in whichthey can no longer compete against cheaperChinese products. With the 1999 debut of thesingle European currency, euro-memberstates lost their ability to devalue their currencyto help manufacturers compete onAs of 11 a.m. ET Euro 1.4537 g 0.07% Yen/US$ ¥90.94 g 1.08% Yen/A$ ¥84.16 g 1.67% Oil 81.33 g 1.44% Gold 1152.50 À 0.16% 10-year TreSimon Cowell to bow outof ‘American Idol’The goin the c&BUSINESS & FINANCE 23FINANHEARD ON THEWednesday, January 13, 2010THE WALL STREET JOURNAL.Baidu says hackers hit WInternet users in China report Iranian group disabled search engine; Farsi note warnsBY AARON BACKBEIJING—Baidu Inc., China’s topsearch engine, said hackers disabledits Web site early Tuesday, andsome Internet users reported seeingsigns that an Iranian group was behindthe attack.Users in China reported seeing abanner for the “Iranian CyberArmy,” complete with an Iranianflag and a shattered Star of David,when they tried to access Baidu’shome page Tuesday.Marten Strassburg, a Swedishcitizen living in Beijing, said he sawthe site defaced with images of theIranian group around 10:30 a.m. localtime (9:30 p.m. Monday EST).Mr. Strassburg and dozens of othersposted screen shots of Baidu’s defacedsite online.For most of Tuesday morning,Baidu remained unavailable inChina, with users seeing just an errormessage when they attempted tovisit the site.Last month, a group also callingitself the Iranian Cyber Army attackedTwitter, temporarily disruptingaccess to the U.S.-based socialnetworkingsite.The Iranian Cyber Army also appearedto have attacked an Iranianreformist Web site.It was unclear why the group,which appears to sympathize withthe Iranian government rather thananti-Tehran protesters, would attackBaidu.Farsi text that ran across the topof the page shed little light on thematter, saying, in translation, “TheCyber Army of Iran was created tooppose the meddling of foreign andZionist Web sites in Iran’s internalaffairs and to prevent these Websites from spreading false news andlies aimed at creating divisions.”Twitter has become a tool forIranian dissidents to communicateand organize, and Chinese nationalsbegan expressing sympathy withIranian protesters last monththrough Twitter. Though Twitter isblocked in China, these Internet usershave found ways around the limitsthrough the use of proxy serversoutside of China.But the Internet free-speech advocateson Twitter aren’t fans ofBaidu, which is seen to be in goodstanding with Beijing.Foreign Web sites such asGoogle Inc. have been periodicallyblocked by the Chinese governmentfor linking to pornographic or politicallysensitive material, but Baiduhasn’t had similar problems withChinese censors.“Services on Baidu’s main Website www.baidu.com were interruptedtoday due to external manipulationof its DNS (Domain NameServer) in the U.S.,” the companysaid in a prepared statement. “Baiduhas been resolving this issue andthe majority of services have beenrestored.”Baidu declined to comment onany possible Iranian involvement inthe incident.China’s main state broadcaster,CCTV, reported the outage duringits noon news broadcast, and suggestedthat users visit Baidu’s Chinesedomain name,www.baidu.com.cn, instead.By the afternoon, both BaiduWeb sites were accessible, with afew users reporting some periodicdisruptions.However, some Web sites withIran’s “.ir” domain names, includingone linked to Iran’s state-ownedbroadcasting network, appeared tohave been hacked by Chinese programmers.The home page of one such site,www.diabetes.ir, contained a warningin fragmented English againstintrusion on Chinese Web sites. Itwas signed “We form China.”— Farnaz Fassihicontributed to this article.ImagineChinaInternet users in China said aWeb site Tuesday morning. AShanda Games to buy online distributoBY LORETTA CHAOBEIJING—China’s Shanda GamesLtd. said it would spend $80 millionin cash and stock to buy U.S. onlinegame distributor Mochi Media, adeal that marks the biggest step sofar in a burgeoning internationalpush by China’s fast-growing onlinegame industry.Under the deal, San FranciscobasedMochi, which is privatelyheld, will receive $60 million in cashand $20 million in shares of ShandaGames, a Nasdaq-listed companyknown for creating some of China’smost popular online games. Thedeal gives Shanghai-based ShandaGames an international platform todistribute games.“Access to Mochi’s platform willspeed up and scale up our distributionof [content] world-wide,” DianaLi, Shanda Games’ chief executive,said in an interview. She saidShanda Games aims to release 10new games for the U.S. marketthrough Mochi’s global distributionplatform. She didn’t specify a timetable.Use of online games has beenbooming in China, which had 338million Internet users as of June,more than any other country. Totalrevenue in China’s online game industrygrew an estimated 42% lastyear to about $3.8 billion, accordingto Beijing-based research firmAnalysys International, which predictsthe figure will jump to $10.7billion by 2012.Unlike in the U.S., where consolegames like Microsoft Corp.’s Xboxor Sony Corp.’s PlayStation are popular,games played on personal computerslike those Shanda marketsBig playersChina’s online game-market share3Q of 2009Others28%Changyou7.3%Perfect World7.9%NetEase12.9%Tencent23.1%Shanda20.8%Sources: Analysys International; Bloomberg News(photos)Customers at an Internet cafe playonline games in Beijing.are favored in China. Multiplayerrole-playing games, like ActivisionBlizzard Inc.’s World of Warcraft orShanda Games’ World of Legend,can attract as many as hundreds ofthousands of concurrent users inChina, earning money for their producersthrough subscription fees,advertisements or sales of virtualitems.The Chinese game compcreasingly have ambitionsBeijing-based Perfect Worcenses its games to othroughout Asia, Europe anAmerica. Last month, it lauversion of its game calledmassive multiplayer game bChinese history, in VChangyou.com Ltd., also inlicenses its martial-artsgame, based on a Chineseoperators in Southeast Asitesting an English-languageof the game, called “Dragoin the U.S.Dan Brody, chief execKoolanoo Group Ltd., whiates several Chinese Web sdeveloped markets are parappealing to Chinese gamenies because users therspend more. He said Chinesnies can leverage their exp“free-to-play” business moencourage users to play fispend money on virtualrather than pay up-front foconsoles or subscriptions.Shanda Games, a unit ofInteractive Entertainmeraised more than $1 billiontember in one of last year’sU.S. initial public offeringsShanda Games had aboshare of China’s online gam>9

Business & FinanceA new section including corporate news and comprehensive views and analysis of world markets and internationalfunds. Clever use of graphics puts the numbers into context and informed analysis drives the news forward.New ‘Sky boxes’above sectionSCIENCEheader drawxperiments as readers team sport to theas a bumpy start, but sometimes the work of crowds yields wisdomstories inside.diesaurchandarscirthnailedlionIndadedershattoestzzi.oremesYouanarfThetotohasntsus.cialthedebedatNueofentTHE WALL STREET JOURNAL. Monday, November 23, 2009CERNAsiaResearchers ready the Large Hadron Collider, which physicists hope will reveal the forces that shaped the universe.tive Dining features some of theing hotel restaurants in Asia.e information about this program,e contact Mr. Philip Owens at2831-2570 | Fax: 2893-5090,www.wsj-asia.com to subscribe.o: philip.owens@dowjones.com.experiments are under way. Lastyear, the National Science Foundationstarted a $50 million project tomap all plant biology research, fromthe level of molecules to organisms toentire ecosystems, so scientists canswoop through shared data as if theywere using Google Earth. Last month,U.S. computer experts launched a $12million federal project to create a nationalbiomedical network called VI-VOweb to encourage collaborations.Scientists are experimenting withthe new technology of teamworkeveninmathematics,whereresearcherscustomarily work alone.Last January, British mathematicianTimothy Gowers invited volunteersto work on a problem in combinatorialresearch called the densityHales-Jewett theorem, which heposted at his Polymath Project blog.By brain-storming together online,two dozen volunteers solved theproblem in 37 days. “This way of doingresearch led to our finding theproof much more quickly than otherwise,”says Dr. Gowers at CambridgeUniversity.Other scientists team up out offrustration. Biology students createdan online collaboration called Open-Wetware to share technical tipsabout cell lines, enzymes, protocolsand screening assays. “This stuff isnever published,” says Sriram Kosuriat the Harvard University Institute ofGenetics, who was among its organizers.“We wanted to get this informationinto the open.”Since 2005, the project has growninto an online collaborative of 7,000registered users on five continentsand 65,000 Web pages—all with littleor no direct management. “Everyoneuses it for their own purposes and itgrows organically,” says Dr. Kosuri.In that spirit, paleontologistMichael Taylor at the University CollegeLondon recently set up the OpenDinosaurProject, encouraging volunteersto create an online database ofdinosaur bones from collectionsworld-wide. “The whole nature of thescientific engagement is changingdramatically and quickly,” Dr. Taylorsays.Bymanymeasures, theLarge HadronCollider is the largest machine inthe world. It is designed to smash togetherproton beams to test ultimatetheories of matter. Its science teams,drawing on independentresearchers,resources and funds from 150 universitiesand dozens of governmentagencies, alreadytranscendthe physicsof conventional management.Strictly speaking, no one is incharge.Consider Tejinder Virdee, who occupiesthe top spot in the organizationalchart of the collider’s CompactMuon Solenoid detector—an intricate12,500-ton device the size of amedieval cathedral. At least 3,600people from 183 institutes in 38 countriesare involved. Ordinarily, Dr.Virdee might exercise considerableexecutive authority. Instead, he carriesthe misleading title of “spokesperson.”He was elected by researchersto negotiate with other groups ontheir behalf.He has no power to order or insist,only to cajole and persuade. “Icannot direct anybody to do anythingthat they do not want to do,”Dr. Virdee says. “All decision-makingis by consensus.” Yet, he is moreor less the boss—at least of this component.All around the collider, researchgroupsorganizedthemselvesindemocraticcooperatives, arranged in ananti-hierarchy. All deliberations areopen—and exhaustive. Everyone getstheir say no matter how long it takes.“It is bottom-up and not top-down,”says Markus Nordberg, who is the resourcecoordinator—essentially thechief financial officer—for the collider’sATLASdetector.TheATLASdetectorweighsasmuchastheEiffelTowerand is among the largest collaborationsever attempted in the physicalsciences.“None of them can do the researchwithout each other,” says BarbaraGray, a management analyst at PennsylvaniaStateUniversity.“Noone canplay with the Large Hadron Colliderunless they all play together.”In one sign of trust, the scientistswho designed the systems relied ontechnologies that did not yet exist,delaying key decisions as long aspracticable in the expectation someonewould invent a way out of theproblem. “There is enough confidencein the community that thetechnical problems will be solved atthe last possible affordable moment,”says Dr. Nordberg. “That isnot the way industry works.”If all performs as planned, researchteams will equally share thedata and the credit.For all their skill, the scientistsstarting up the Large Hadron Colliderhave encountered any numberof operational glitches this yearand, perhaps, one unique obstacle.The accelerator is expected to unleashforces so fundamental—evena black hole, some fear—that a fewphysicists fret the universe may besabotaging the project to protect itself.See a video on the Large HadronCollider and scientific partnership,at WSJ.com/ScienceJournal. EmailRobert Lee Hotz at sciencejournal@wsj.com.Hershey’s trustees backa bid for CadburyJAL’s travails cloud theoutlook of ANA&BUSINESS & FINANCE 29HEARD ON THE STREET 40FINANCE.Monday, November 23, 2009 THE WALL STREET JOURNAL. asia.WSJ.comInvestors dial back risk earlyCaution is driven by urge to protect big gains, changes to some fiscal years; Treasury yields go negativeBY TOM LAURICELLAAND JOANNA SLATERSIGNS OF wariness are appearingin financial markets as investorsworry that the end of theyear could bring challenging tradingconditions.Last week saw a steep drop off inU.S. stock-market trading volumeand a surge in demandfor short-ABREAST OFTHE MARKET term governmentdebt, indicationsthat investors and financial institutionsare growing cautious and retreatingfrom riskier bets.That defensive behavior is relativelycommon toward the end ofthe year. But this year it’s happeningearlier than usual. An uncommonconfluence of events is drivingthe shift. The biggest catalyst is aPulling backThere are signs that investors are getting more cautious ahead of year-end,much earlier than usual.Average stock trading volume* Yield on the 3-month Treasury bill8 billion0.6%0.560.440.30.220.1002008 ’09 2008 ’09*Weekly data, NYSE listed sharesreluctance among investors to takeon new aggressive bets and avoid alate-year blow-up in their portfolios.Delta says SkyTeamhas funds for JALBY MARIKO SANCHANTAAND MIKE ESTERLThe chief executive of Delta AirLines Inc. said the SkyTeam allianceof global carriers would be willingto invest more than its proposed$1.02 billion into struggling JapanAirlines Corp. as it tries to forge atrans-Pacific partnership.The final proposed investmentinto JAL by the nine-airlineSkyTeam alliance could be “greaterthan what we’ve stated” thus far, RichardAnderson said in an interviewFriday.“When you get that value, it canbe financeable. You create a lotmore value, and together partiescan figure out how to monetize thatvalue,” Mr. Anderson said.Atlanta-based Delta and itsSkyTeam partners are trying to persuadethe Japanese carrier to defectfrom the rival Oneworld alliance ofairlines to expand their share of thelucrative travel markets in Japanand Asia.AMR Corp.’s American Airlines,a member of Oneworld, has said itand private-equity partner TPG alsoare willing to inject an undisclosedamount of money into JAL, which isundergoing a restructuring afterseveral quarters of losses.Delta, the world’s largest carrierby traffic, said last week it was preparedto inject $500 million intoJAL from SkyTeam in addition to a$300 million revenue guarantee,$200 million in asset-backed fundingand $20 million or more in transitioncosts if JAL agrees to switchIndex to Businesses andPeople:A quick reference to businesses,business people and governmentregulators who receive significantmention in each day’s issue.to SkyTeam.The restructuring of JAL is seenas the first big test of the new Japanesegovernment’s willingness totake a hard line with “zombie” companiesweighed down by billions ofdollars in debt. Since the DemocraticParty of Japan took powertwo months ago, it has focused onrestructuring JAL, which is boggeddown by over one trillion yen($11.24 billion) in net debt and legacypension costs.Both Delta and American see thismove as an opportunity to invest inJAL, a former flag carrier that haslong been protected by the state.Mr. Anderson said that neitherDelta nor its SkyTeam partners areinterested in a board seat or managementrepresentation at JAL. “Wedon’t need to manage anybody. Wedon’t want to and don’t expect to,’’he said.The Delta CEO said SkyTeam wasunlikely to link up with a private-equitygroup as it tries to woo JAL.“We have had many inquiries fromother third parties that would be interested,”said Mr. Anderson. Nonetheless,he added, “we’re focused ona SkyTeam strategic investment.”The Enterprise Turnaround InitiativeCorp., the government-ledbody that is leading JAL’s rehabilitationefforts, is expected to completeits due diligence in January.Mr. Anderson said Friday thatDelta would be willing to step in toaid JAL even before this process infinished. “We are ready, willing andable to participate at the righttime,” he added.Sources: WSJ Market Data Group (volume); Ryan ALMMany are sitting on big gains aftera 58% surge in the Dow Jones IndustrialAverage since early March andrecord returns from some corporatebonds.“People who have booked somesignificant gains…are looking totake risk levels down,” says BrianFagen, co-head of Americas liquidmarket sales at Barclays Capital.Banks looking to improve theircapital positions have been paddingtheir investment portfolios with U.S.Treasurys, driving up demand forgovernment debt. At the same time,investors are wary that a shift byWall Street brokerage houses to endtheir fiscal year on Dec. 31 insteadof Nov. 30 may make them less willingto take risk in the final fewweeks of the year.“There could be some odd thingshappening around the end of theyear,” Mr. Fagan says. Should therebe some unexpected news thatdrives the market higher or lower,“it could exacerbate the movements.”Beyond the calendar, there arefundamental reasons for the heightenedcaution. After the rebound inthe stock and bond markets thisyear, there is considerable uncertaintyabout the outlook for 2010.In the bond market, investors areunsure about how the Federal Reservewill wind down its support ofthe mortgage-backed securitiesmarket and the timing of an eventualincrease in interest rates.Stock investors are awaiting apickup in corporate revenue growththat is seen as needed to extendbetter-than-expected earnings thatthus far have been led by cost cutting.Many investors are concernedabout ripples from a continued risein unemployment, and expectationsPlease turn to page 3218 THE WALL STREET JOURNAL. Thursday, February 18, 2010BusinessesThis index of businessesmentioned in today’sissue of The Wall StreetJournal is intended toinclude all significantreference to companies.First reference to thecompanies appears inbold face type in allarticles except thoseon page one and theeditorial pages.Advanced Micro Devices.......................................24Air France-KLM.............21Akamai Technologies...24American Airlines.........21American InternationalGroup..........................19AMP...............................19Anadarko Petroleum....20ANA Group....................21AT&T..............................24Australia & New ZealandBanking Group...........27AXA Asia PacificHoldings.....................19AXA SA.........................19Bank of America....26, 27Bank of America-MerrillLynch............................4Bank of China...............27Bank Sarasin & Co.........8BB&T.............................24Berkshire Hathaway.....23Bharti Airtel.................17BHP Billiton..................27BNP Paribas..............5, 24BP..................................20Burlington NorthernSanta Fe....................23Campbell Soup..............22Canon............................27Capital Economics..........4CarMax..........................23Carrefour.......................17Caterpillar...............20, 27Chesapeake Energy......20China Cosco Holdings...27China InternationalCapital..........................4China Unicom (HongKong)..........................17Citigroup...................4, 24Commerzbank.................5ConocoPhillips........20, 23Continental Airlines.....21Crédit Agricole................5CreditSights....................5Daewoo Engineering &Construction..............18Deere.......................19, 27Delta Air Lines.............21Deutsche Bank...........4, 5Duane Reade.................22Econet Wireless Holdings.......................................22Exxon Mobil............20, 23Fifth Third Bancorp......24Galleon Group...............25GE..................................20Generali Group................8Globacom......................22Google.......................1, 21Hartford FinancialServices Group..........19Hawaiian Holdings.......21Herbert Smith................8Home Depot..................27Honeywell International.......................................20Hypo Real EstateBUSINESS FINANCESamsung edges out flat-panel rivalsBig players come to dominate as market matures, industry braces for tighter profit margins as TV prices declineBY EVAN RAMSTADThe boom in flat-panel televisionsets has so far been a boon for SamsungElectronics Co.Samsung’s TV manufacturingbusiness has nearly doubled in sizesince 2006—when it surpassed SonyCorp. to become the world’s biggestseller of TV sets—and the companyis closing in on 20% global marketshare in TV unit sales, a thresholdnot reached by any manufacturersince the earliest days of the industrymore than 60 years ago.Of course, success comes withcosts. Unlike many of its rivals, whohave increasingly outsourced productionto reduce costs, Samsunghas ramped up TV manufacturingalmost entirely on its own, relyingon outside contractors only to finishtube TVs in a handful of less-affluentmarkets.Samsung executives say theyprefer to control production forquality assurance and to keep a directeye on costs. But now the companyfinds itself in the unusual positionof having to expand its own TVfactories.“We may have to invest in somecapacity this year,” says Kim Yanggyu,a senior vice president in Samsung’sdisplay division.Samsung earlier this month announcedplans to invest €100 million($136 million) to expand a TVfactory in Slovakia.Samsung’s unrelenting climbsuggests that the TV-manufacturingindustry, after several years of beinganyone’s game as technologychanged from old-style tube TVs toflat-panel models, is again becominga business dominated by giants.About five years ago, when flatpanelTVs were first reaching themass market, the business was sowide open that start-up companieswere getting in by ordering componentsfrom suppliers, hiring contractorsfor assembly and arrangingdistribution with wholesalers andretailers. But now, size and scale isbecoming more important as pricesand margins come down.One person who started his ownTV company during the early daysin 2003, Dan Zubic of Aurora, Ill.,shifted away from the consumermarket in 2007 because price competitionbecame too intense.Today, Mr. Zubic’s Ovideon Inc.continues to design TVs and havethem built by contract manufacturersbut it now sells them to commercialusers, such as offices, publicbuildings like airports and to TVbroadcasters. “The big guys are alwaysthere,” Mr. Zubic says. “Wehave to find niches where we havebetter performance than they do.”The world’s top five manufacturersaccounted for 51% of all TV unitINDEX TO BUSINESSES AND PEOPLEHolding.........................5Industrial & CommercialBank of China............27Ingersoll-Rand..............23ING Groep...............25, 27Innerscope Research....22Intel...............................24Iron Mountain...............23Japan Airlines...............21J.P. Morgan Chase...4, 24Kohl's............................24Korea Development Bank.......................................18Kosmos Energy.............20Kumho Asiana Group...18Leap WirelessInternational..............24Macy's...........................24MetLife.........................19Mitsubishi HeavyIndustries...................27Mitsui O.S.K. Lines......27MobileTelecommunications..17Morgan Stanley..............4Motorola.......................24MTN Group...................22Munich Re.....................23National Australia Bank................................ 19, 27New Castle Funds........25Newcrest Mining..........27Nissan Motor................27Norfolk Southern..........23Oak Hill Capital Partners.......................................22Ovideon.........................18Procter & Gamble.........23PT Alfa Retailindo........17RBS Coutts Bank............8Republic Services.........23Royal Dutch Shell.........20Safaricom......................22Samsung Electronics....18Sony..............................18Standard Chartered Bank.........................................4STX Group.....................18Sun Trust Banks...........23Tata Steel.....................27Toshiba..........................27Total..............................20Toyota Motor..................1TR America...................18UAL................................21UBS.................................8Union Pacific.................23Vodafone Group............21Walgreen.......................22Giants ruleTotal television unit marketshare, third-quarter 200917.2%14.86.96.65.948.6SamsungWal-Mart Stores..........23WellPoint......................23Wells Fargo...................23Westpac Banking.........27Whole Foods Market....27Wipro.............................19XTO Energy...................20Yanzhou Coal Mining....27PeopleThis index lists thenames of businesspeopleand governmentregulators who receivesignificant mention inToday’s Journal.Aboukhalil, Antoine......22Ackermann, Josef...........5Allen, Samuel...............19Alpert, Dan...................27Altena, Maarten...........25Barki, Grace....................8Beecroft, Nick.................5Bernanke, Ben..............26Bessant, Cathy.............26Bratsch, Urs....................8LG ElectronicsPanasonicTCL ElectronicsSonyAll Otherssales in the third quarter of 2009,up from 48% a year earlier, accordingto DisplaySearch, a unit of marketresearcher NPD Group.Samsung led the pack with 17.2%market share. The second-largestmaker, LG Electronics Co. had 14.8%market share.Manufacturers’ push for size ispartly motivated by fear profit marginswill tighten as flat-panel TVprices settle down to the low levelsthat tube TVs hit in the 1980s and1990s. “A lot of these companies arebetting there’s going to be an endgamewhere the flat-panel businessbecomes similar to the maturephase of the tube-TV era, where thesurvivors could sit back and counton stable, but very low, pricing andprofits,” says Paul Gagnon, directorof North America TV research forDisplay Search.From the 1970s to 1990s, theglobal TV business was shaped by ahandful of global players and localbrands in many regions. But themove to flat-panel TVs reshaped themap because they’re easier and lessexpensive to ship from long distances,resulting in mega-size factoriesfor TV panels and finishedproducts, mainly in Japan, SouthKorea, Taiwan and China.The change in technology hasboosted sales of TVs overall as consumersplace flat-panel models inmore rooms at home. Though marketresearch firms haven’t finalizedyear-end data for 2009, analysts saythe overall global market for TVslast year will likely be around 210million units. That’s up from about180 million five years ago.Samsung executives say the companyshipped 38 million TVs lastyear, up from 33 million in 2008.Of last year’s total, Samsungshipped 27.5 million liquid-crystaldisplaymodels and 3.5 millionplasma models; the rest were theold-style tube TVs. This year, LCDand plasma models are expected toaccount for 39 million, Mr. Kim says.“We pay attention to design, wehave strong relationships with oursuppliers and retail partners and weare expecting a lot of growth in developingcountries,” says Mr. Kim.“Our strategy is very balanced.”STX may join bidding for Daewoo EngineeringBY SHIN JUNG-WONAND JUNG-AH LEESEOUL—South Korean conglomerateSTX Group may join in themultibillion-dollar bidding for controlof Daewoo Engineering & Construction,even as a group of U.S.firms expressed renewed interest inbuying the big South Korean constructioncompany.ReutersSTX said it is interested in joininga private equity fund led by KoreaDevelopment Bank that is setto acquire a controlling stake inDaewoo Engineering for $2.5 billion.KDB is the main creditor of cashstrappedKumho Asiana Group,parent of Daewoo Engineering.TR America consortium, a U.S.fund mostly consisting of constructioncompanies, revised its offer tobuy a controlling stake in DaewooEngineering, KDB said Tuesday. TRAmerica had previously been a finalbidder for the stake before investorschose to sell it to KDB as part of aKumho restructuring. Details of TRAmerica’s interest were unclear.Shares of Daewoo Engineeringwere up on hopes its sale processmay speed up, while STX Group affiliateswere lower on concerns of afinancing burden from the possibleacquisition. Daewoo Engineeringended 4% higher, while STX Corp.shares were down 5.1%.The sale process has been miredin uncertainty as creditors work outa Kumho restructuring. The KDBcontrolledfund agreed in Decemberto purchase a more-than-50% stakein Daewoo Engineering as part ofthe restructuring. But the 18,000-won per share price is a hefty 53%premium to the current price.An STX official said the companyhas had talks with KDB but it hasn’tdecided whether to join yet. “Wewill be able to make a decision aftercreditors reach an agreement withfinancial investors,” the official said.The official said the firm wouldbe a strategic investor, meaning itwould participate in management.Buffett, Warren............23Cavaney, Red................20Chiesi, Danielle.............25Chin, James....................4Coloa, Vittorio..............21Conant, Doug................22Donofrio, Paul...............26Gagnon, Paul.................18Galy, Sebastien.............27Gayda, Tim....................14Godzowsky, Terry.........15Gurgel, Udo...................15Hommen, Jan................25Inaba, Yoshimi................1Kaufman, Alan..............25Kechiche, Badii.............22Keidel, Albert..................4Kesavan, Ragunath........4Kim Yang-gyu...............18Kreis, Marcel...................8Lambert, Jean Pierre......5Lardy, Nicholas.............16Lieberthal, Kenneth........1Marci, Carl....................22Masiyiwa, Strive..........22Mittal, Sunil Bharti......17Montag, Thomas..........26Nishida, Akihiro............23Penn, Andrew...............19Pittaway, Nigel.............19Prot, Baudouin................5Rajaratnam, Raj............25Raymond, John...............5Sadjadpour, Karim..........7Sasaki, Shinichi..............1Schmidt, Eric................21Segal, Tad.....................20Senapaty, Suresh.........19Shimominami, Masashi................................ 23, 26Smith-Valade, Renee....14Soros, George...............24Stewart, Justin Urquhart.........................................5Storey, Bob...................15Swift, Christopher........19Thomson, Stuart............5Ticehurst, Rupert...........8Toyoda, Akio...................1Tsurugi, Hiroyuki..........20Wasson, Gregory..........22Woodard, Robert..........22Wurth, Douglas..............8Zhu, Ji...........................16Ziegler, Marie...............19Zubic, Dan.....................18Thursday, February 18, 2010Tim Gayda, the vice president of sport would be unusually diffor the Vancouver organizing committee, cording to the bobsledtold the Vancouver Sun in October 2002 zowsky.that the decision would make the track financiallyviable after the Games.ipal-building room in WMr. Gudzowsky reca“In order to make this thing financially graphical map and drasustainable, we want it someplace where the course. “It would hpeople will pay top dollar to go whipping site would have been wdown this thing in both summer and winter,”Mr. Gayda told the newspaper. The location for a track hathe land seemed goodluge and bobsledding federations, he added, Mr. Gudzowsky sayswere “pushing us to look at options at to German luge-courseWhistler.”The 71-year-old Mr. GuThe Vancouver organizing committee of the major new lugedidn’t make Mr. Gayda or others associated cluding six Olympic trwith constructing the track available for decades. He says the Wcomment. Officials with the International one of the steepest anOlympic Committee referred questions Its 90-meter-wide valabout the track’s specifications to the luge Calgary’s 275 meters aand bobsled federations.455 meters.The International Luge Federation declinedto respond to multiple phone and build in typical speed-That meant the siteemail requests for comment on detailed such as “kreisel” curvequestions about the track.had to be short and tigBob Storey, the bobsled federation’s gravitational forces agpresident and a former bobsledder, said it the curves and, towardwould be jumping to conclusions to blame G-forces would be toothe Mr. Kumaritashvili’s crash on speed. no curves, allowing sle“The Royal Canadian Mounted Police did past top speeds.not attribute it to design flaws and did not The course’s dangerattribute it to speed,” he said. “The reason marketing.they call it an accident is that nobody can “Vivid, violent and rdefine the cause.”Sliding Centre is not fWeather was one factor in locating the the Web site of the cenrun in Whistler, said Terry Gudzowsky, a Vanoc, said in promotitechnical delegate for the bobsled federationwho, as a then-member of Canada’s has a rhythm that evemained on the site thibobsled federation, participated in the initialplanning. Grouse Mountain often has run. If they lose it, it wcapture. Sliders mustwarmish, wet winters that could lead to back on the beat.”mushier, slower ice. Mr. Gudzowsky said he Soon after the trackadvocated at the time moving it to Whistler,whose higher elevation made it more faster than expected. MMarch 2008, it becameappealing to the sport.jected a top speed of a“That was not an engineering decision,” an hour for the luge. Tsaid the bobsled federation’s Mr. Storey. matched immediately“That was a commercial decision.”Gurgel said, implying tThe available land at Whistler was steep rise once athletes gotand narrow. The committee found a plot “It was crazy fast,”about 90 meters wide by roughly 730 meterslong. The topography meant the course it opened. “EveryoneMaciej Kurowski, whow10< The Wall Street Journal Asia | Content Guide

Thursday, January 28, 2010 THE WALL STREET JOURNAL. 11WEALTHBlack Dragon banknote sells for record at auctionChina’s currency has drawn thewrath of Western politicians, but aparticular one-yuan note receivedaltogether more welcome attentionat auction in Hong Kong thisweek.The rare bill—a Black Dragon,or “Ooi-Long,” note from1909—wowed collectors at apacked auction room in the LandmarkMandarin Oriental hotel, astwo determined collectors uppedthe winning bid to an exchangerate-defying990,000 Hong Kongdollars (about US$127,000).The sum paid by the new Taiwaneseowner is believed to be arecord for a Chinese banknote, accordingto Barnaby Faull of auctioneersSpink, who also says thatinterest in rare Chinese notes hasgrown rapidly in recent years.In all, nearly HK$11 million ofrare notes, coins, stamps andbonds were sold at the Spink auction.“The room was heaving,” Mr.Faull said. “In the last six months to ayear, the Chinese note market has takenoff. Today, [auctioneers] really want aChinese note to come up for sale.”The century-old Ooi-Long note featurestwo black dragons, said to signifythe prowess of the Chinese emperor. Itwas issued by the Qing dynasty Kwangsibank and printed in Japan with an originalrun of 100,000 notes . The notes wererecalled after China’s banking system wasrestructured in 1911, and only three examplesof the one-yuan bill are known to collectorstoday. The Ooi-Long note’s valueamong Chinese collectors is also thoughtto be higher because it is one of the fewexamples of a banknote issued by a Chinesebank during a period when much ofthe currency used in the region was issuedby European banks.The previous record auction price for aChinese bill is believed to havebeen HK$160,000 set in 2009.The market for collectibleChinese notes still lags that inthe West—European banknotes regularly fetch tens ofthousands of dollars at auctionand bidding for rare U.S.notes has seen some items gofor millions of dollars.The world record price fora banknote is US$2,255,000paid in a private transactionin December 2006 for a $1,000bill from 1890 known as the“Grand Watermelon” becausethe zeros resemble the largefruit.But auctioneers expect theChinese market to pick up rapidly,especially as wealthy collectorslook to repatriate collectibleChinese banknotescurrently held in Western collections.Mr. Faull said the price paid for theBlack Dragon note was two or three timeswhat the auction house had expected, asthe winning Taiwanese collector had tobeat away stiff competition from anotherbidder, believed to have been from theChinese mainland.BY DUNCAN MAVINThis one-yuan Black Dragonbanknote from 1909 sold atauction for about $127,000.SpinkCalvin Ng picked his plate inhonor of his favorite pastime.He paid the minimum but hasbeen tempted by an offer fromanother driver to buy it.Laura Santini/The Wall Street JournalIn a town that levies a100% tax on luxuryimported cars, autoenthusiasts pay sumsin the thousands ofdollars to accessorizetheir vehicles withvanity plates. Theirpopularity hasspawned a livelysecondary market,replete with so-calledagents who offer toattend an auction on abidder’s behalf orferret out specific tagsalready held by privatecar owners.executive with a car displaying the plate“AM 78,” which, observers suspect, refersto the Hong Kong dollar’s peg of 7.8 to oneU.S. dollar.Several years ago, the Wong family,which owns AMS Public Transport HoldingsLtd., a local minibus company, hadrepresentatives bid for plates that includedthe number “77,” the company’s tradingcode on the Hong Kong stock exchange.Vincent Wong, whose father started thecompany in the 1970s, says the plates helpdifferentiate the company’s green-toppedminibuses from competitors on the island.Feng Shui master Gladys Mak’s silverPorsche brandishes the phrase “FUNGSHUI.” Ms. Mak says the more conventionalspelling was taken so she substituted the“u” for an “e.” The plate identifies her withher business, helping clients orient objectsin their homes or work places to allow foroptimal energy, or qi.In this case, the plate’s advantage is alsoits drawback, Ms. Mak says, as police caneasily spot her car. While she doesn’t mindother drivers staring at her, she says unwantedattention is the reason her husbanddoesn’t like to drive her car.For some, a personalized plate serves asa token of love. One couple paid US$3,870for “XXEE.” The “XX” stands for “kiss,kiss,” while the “EE” refers to the nickname“eagle eyes” that Ricki Leung gave her boyfriend,Clem, for his ability to “noticethings too easily.”After scoring the plate at the Saturdayauction, Ms. Leung said she was on her wayto a nearby car dealership to pick out hernew car. At that point, she was vacillatingbetween a Mercedes and Land Rover.—Lam Thuy Vocontributed to this article.WSJ.comOnline today: Ever since Hong Kongtransport officials began auctioning vanityplates in 2006, the service has taken off.Photos at wsj.com/asia. And Laura Santinireports at wsj.com/video.26 THE WALL STREET JOURNAL. Thursday, January 28, 2010CORPORATE NEWSSharp expands its TV color paletteTOKYO—While televisions havetransformed from bulky and boxy toslim and sleek over the last decade,one thing hasn’t changed. The basicsof displaying color on TVs stillderive from the same three fundamentalbuilding blocks: red, greenand blue.In what Sharp Corp. is calling a“revolutionary” breakthrough, thecompany says it has developed away to add a fourth primary color,yellow, to the mix. By doing so,Sharp says its new flagship televisions—hittingthe market in twomonths—will display more than atrillion colors, about 1,000 timesmore color than current models.At the Consumer ElectronicsShow in Las Vegas earlier thismonth, Sharp introduced the productwith banners that read “HelloYellow!”—though a companyspokeswoman said the signs weren’ta preview of its upcoming marketingcampaign.Competitors are quick to downplaySharp’s technology. They saymore colors don’t necessarily resultin better picture quality or improvedcolor accuracy. Sharp disagrees,saying it can now accuratelyreproduce colors difficult to captureon conventional liquid-crystal-displayTVs, such as the metallic goldof brass instruments and the emeraldblue of a tropical ocean.Selling a new TV technology canbe tricky. As displays have improved,TV makers are challengedwith trying to explain to consumersthe benefit of innovations thataren’t obvious to the naked eye. Inrecent years, LCD-TV makers haveincreased frame rates, or hertz, tosmooth out fast-moving images. Butthat’s been a harder sell than moreobvious improvements like a thinnerscreen.Color quality is also subjective,without an industry benchmark forcomparison. Some consumers preferTVs to render vivid colors eventhough they may not necessarilycapture the truest color.“This going to require some educationand demonstration or elsemost people will say ‘I don’t knowwhat more color does for me,’” saysPaul Semenza, a senior vice presidentat research firm DisplaySearch.With its television-market shareoutside of Japan sinking, Sharp istaking the unprecedented step of introducingthe new televisions in theU.S. and Europe before its launch inJapan, where it dominates the market.The sets, to be sold underSharp’s Aquos brand, will go on salein March in North America and Europe,and later this year in Japan.Outside of Japan, Sharp has lostits footing, struggling to keep pacewith the relentless price cuts of discountbrands like Vizio Inc. It hasalso given ground to market leaderSamsung Electronics Co., whichhas struck gold by creating a newsubcategory of TVs branded as LED-TVs, or ultrathin LCD televisions,named for the type of backlightsthey use.In North America, Sharp’s marketshare of flat-panel-TV shipmentsfell to 4.8% in the first three quartersof 2009 from 8.7% in 2007, accordingto research firm Display-Search. Sharp’s European marketshare fell to 3.1% from 4.8% in 2007,while its market share in Japan hasheld steady at 37.3%.“We think we can recoup someof the market share we lost withthis new technology,” Sharp PresidentMikio Katayama said at a recentmeeting with reporters.Sharp’s technological breakthroughstems from a new LCDpanel using four-color filters, addingyellow to the standard red, greenand blue, for each of the millions ofdots on the screen. It also uses animage processor to convert videoand allow its televisions to show imagesin colors beyond what a normalcamera can record.Samsung, the world’s biggesttelevision maker, said it has workedon adding yellow as a fourth primarycolor since 2004. However, ithas held off on adopting the TVtechnology because it didn’t createenough of an improvement to warrantan overhaul of its productionprocess.Hyun Suk Kim, a senior vicepresident of research and developmentat Samsung’s display business,said it has opted to focus on refiningits color accuracy instead of justwidening its range of colors becausea video camera can only capture a“limited amount of color.”The test for Sharp will bewhether it can charge more for thetechnology and avoid the marginkillingprice competition that droveit to post its first annual loss innearly 60 years in the fiscal yearended March 31, 2009. Sharp saysthe TVs, which incorporate the company’snew LCD-panel technologythat makes its screens brighterwhile draining less energy, willrange from $1,800 for 40-inch setsto $4,000 for a 60-inch size. Its currenthigh-end 40-inch model sellsfor $1,400, and its 60-inch modelsells for $3,000.While its marketing plans for thenew televisions aren’t finalized,Sharp says it doesn’t plan to sell thenew sets at mass retailers like Wal-Mart Stores Inc. It will instead lookto work closely with specialty electronicsshops such as Sixth AvenueElectronics and P.C. Richard & Son.BY DAISUKE WAKABAYASHISharp’s new-model televisions on display this month at the Consumer Electronics Show in Las Vegas.ReutersYahoo earnings rebound as ad business stabilizesYahoo Inc.’s advertising businessshowed further signs of stabilizingas the Internet company stemmedits revenue slide and swung to aprofit in its latest quarter.The results signal that an improvingadvertising climate is givingCarol Bartz, who joined Yahooas chief executive in January 2009,some breathing room as she takessteps to reenergize the company.Ms. Bartz had promised to reverseYahoo’s slump by focusing ona few core products, such as itshome page and Yahoo Mail. Lately,she has also been pushing to offerhigher quality ads.Yahoo’s search-advertising anddisplay-advertising businesses eachimproved from the company’s thirdquarter, but were down comparedwith the fourth quarter of 2008. Yahoo’ssearch-ad revenue declined15% from a year ago, compared witha 19% drop in the third quarter. Itsdisplay-advertising revenue fell 1%from a year ago, an improvementfrom the 8% third-quarter drop.The Sunnyvale, Calif., companyswung to a profit of $153 million, or11 cents a share, for the fourth quarterfrom a loss of $303 million, ayear earlier. In the 2008 fourthquarter, Yahoo took more than $500million in write-downs and chargesfrom layoffs and its internationalbusiness. Revenue declined 4% froma year ago to $1.73 billion, comparedwith a 12% sales drop in the thirdquarter.“The better news here is what’sgoing on in revenue,” said YahooChief Financial Officer TimothyMorse, who added that product enhancementslike better ad-matchingtechnologies are helping.Yahoo executives said they wereparticularly pleased with demandfor its display ads, or graphical bannerads. “We’re seeing advertisersreach farther into 2010 to book premiumYahoo sites and events,” saidMs. Bartz. “So we expect the positivemomentum to keep building.”Analysts and investors are continuingto scrutinize Yahoo’s Internetsearch business, which is seeingits market share get eaten up by MicrosoftCorp.’s Bing search engine.In December, Yahoo’s Internetsearch share declined to 17.3% ofU.S. Internet searches from 17.5% inNovember, according to ComScoreInc., while Microsoft’s rose to 10.7%from 10.3% in November.The company last year announceda search and search-advertisingagreement with Microsoftthat is pending regulatory approvaland is expected to close early thisyear. Under the deal, Yahoo willearn revenue from search ads soldusing Microsoft technology on itssite, saving the company overheadinstead of running its own Internetsearch business.Still, Yahoo can’t afford to let itsshare of search slip away as it facescompetition from Microsoft’s Bingservice, analysts say. “If they continueto lose search share, they’regoing to see slower [ad] revenuegrowth,” said John Aiken, an analystwith Majestic Research.Mr. Morse said Yahoo has noplans to give up on search and is expandingthe number of searchesdone through its system while continuingto make more money offeach search.Yahoo’s results signal a furtherrebound for the online advertisingmarket, which was hammered in therecession..Meanwhile, Yahoo Japan Corp.reported a 9% rise in group netprofit for the fiscal third quarterended in December, helped by revenuegrowth in its business-servicessegment.For the October-December period,its net profit climbed to 20.86billion Japanese yen ($232 million)from 19.13 billion yen a year earlier,thanks to sales growth boosted by ayear-end sales campaign on YahooShopping.Its operating profit for the threemonths also rose to 36.44 billionyen from 33.15 billion yen.For the fiscal year ending inMarch, the Tokyo-based Internetservicefirm affiliated with SoftbankCorp. and Yahoo said it expects netprofit to range from 80.97 billionyen to 82.47 billion yen.The firm’s earnings are based onJapanese accounting standards.BY JESSICA E. VASCELLAROMixed pictureSharp’s market share of theflat-panel-display TV market*’05 ’06 ’07 ’08 ’09 †010203040%JapanNorth AmericaEurope*Based on shipments †Through SeptemberSource: DisplaySearchL. Friday - Sunday, February 19 - 21, 2010raws scrutiny’; European agency seeks informationvanced Greece a €2.8 billion loan.Under EU accounting rules—whichwere tightened in 2008—Greecewasn’t obliged to include the loan inoverall public debt on its books.On Feb. 1, a special Greek governmentpanel set up to examinethe country’s recurrent problemswith its public data warned thatsuch swap transactions could inflatethe country’s future debt burdenand warned against their furtheruse. According to the Greek government,Greece’s public debt as of Oct.21, 2009, was €272.3 billion, equalto about 113.4% of GDP.“As far as the debt is concerned,the numbers are accurate. The onlyswap that might have an impact onthe debt is this forex swap, whichmight have been done behind thescenes at an artificial exchangerate,” said Gikas Hardouvelis, aneconomist who participated in thedrafting of the report. “That is theonly transaction where there issome doubt.”However, government officialsfamiliar with the deal said the exchangerate selected for the transactionwas determined by the very lowlevel of the euro at the time—thecurrency was then trading at around85 U.S. cents—and with the marketexpecting that value to rise.“These were not fabricated exchangerates, these were historicalexchange rates which we chose forthe deal and which were permittedunder EU rules at the time,” saidChristoforos Sardelis, the head ofGreece’s debt management agencyfrom 1999 to 2004.Separately, a person familiarwith the situation said Thursdaythat Greece may issue a 10-yearbond next week and hopes to raisearound €5 billion.The government is “looking intoit. It could be as early as next weekbut there is no firm decision yet onthe timing,” the person said.The issuance would be in linewith comments by Spyros Papanikolaou,head of Greece’s Public DebtManagement Agency, who said inJanuary that Athens was planning a10-year bond in February. “Therewill be another syndication, mostlikely 10 years. We will go for €3 billionto €5 billion and depending onthe market reaction it could bemore, although a 10-year bond is abit more difficult,” Mr. Papanikolaousaid at the time.—Susanne Craig and Costas Pariscontributed to this article.Athens. The government’s austerityarked several strikes..01234EECE IRELAND PORTUGAL SPAINighnesdayowd some default bets($6.8 billion) of 15-year bonds. Thetreasury offered a hefty premium,but received offers to buy more than€13 billion of the new bonds.Spanish officials are quick to rejectcomparisons with Greece, wheredeep fiscal problems are compoundedby a history of dubiousbudget accounting. “As markets seethat our diagnosis of the situation iscorrect and that the measures weare taking are adequate, this offersreassurance,” said Deputy FinanceMinister Jose Manuel Campa.Some of the longtime bears saythey have trimmed some CDS holdingsto cash in profits as theymoved on to buy CDS protection onthe debt of the United Kingdom, Japanand other nations that haven’tbeen the focus of recent concerns.They have also concentratedtheir focus on the euro. A wideswath of fund managers and WallStreet traders agree that the euro islikely to fall against the dollar thisyear. If Greece and other SouthernEuropean countries default on theirdebts, they argue, the perceivedweakness in the euro-zone economywill cause the currency to fall. Similarly,moves by European Union officialsto bail out a teetering economysuch as Greece’s could also weakenthe common currency.Operating under the theory thatthe U.S. is likely to recover from itsfinancial woes faster than Europewill, the large asset-managementfirm BlackRock Inc. began shortingthe euro late last year, according tosomeone familiar with the matter.At that time, the euro was tradingat close to $1.50, which seemed toohigh to last, this person says.Other funds that have made recentbets against the euro includethe large New York hedge-fund managersPaulson & Co. and MooreCapital Management LP, say otherpeople familiar with the matter. Thetwo firms declined to commentWednesday.—Gabriele Parussiniand Jonathan Housecontributed to this article.Friday - Sunday, February 19 - 21, 2010 THE WALL STREET JOURNAL. 23For information about listing your funds, please contact: Carson Wong tel: +852 2831-6481; email: carson.wong@dowjones.comAdvertisementINTERNATIONAL INVESTMENT FUNDS[ Search by company, category or country at asia.WSJ.com/funds ]NAV—%RETURN—FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YRNAV—%RETURN—FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YRNAV—%RETURN—FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YRNAV—%RETURN—FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YRn GAM FUND MANAGEMENT LIMITEDGeorge's Court, 54-62 Townsend Street, Dublin 2, IrelandTel +353 1 609 3927 Fax +353 1 611 7941, Internet: www.gam.comGAM Arbitrage Op OT OT VGB 02/05 USD 1292.96 4.0 26.7 -6.0GAM Asia Eq Hdg JPY Op GL EQ VGB 02/15 JPY 13901.07 -10.5 54.4 2.0GAM Asia Equity Hedge US OT OT VGB 02/15 USD 259.44 -10.6 NS 3.3GAM Asia Equity USD OT OT VGB 02/17 USD 609.38 -6.8 67.3 -10.6GAM Asia-Pacific Eq USD OT OT VGB 02/16 USD 1252.87 -2.3 27.3 -11.6GAM Com Glb Bal EUR Op US BA VGB 02/08 EUR 94.79 -2.0 17.3 -7.9GAM Com Glb Bal USD Op US BA VGB 02/08 USD 125.26 -2.0 17.3 -7.9GAM Comp Glb Eq EUR Op GL EQ VGB 02/08 EUR 95.26 -5.1 25.2 -14.3GAM Comp Glb Eq USD Op GL EQ VGB 02/08 USD 121.02 -5.1 25.2 -14.3GAM Comp Glb Gr EUR Op US BA VGB 02/08 EUR 85.28 -3.6 18.3 -11.6GAM Comp Glb Gr USD Op US BA VGB 02/08 USD 122.53 -3.6 18.3 -11.6GAM CompAbsRT EUR Op OT OT VGB 09/30 EUR 141.71 9.1 0.1 -6.9GAM CompAbsRT SGD Op OT OT VGB 09/30 SGD 102.21 9.2 -0.1 -8.3GAM CompAbsRT USD Op OT OT VGB 09/30 USD 845.66 9.5 0.7 -7.0GAM Cptal Apprec Eq Inc US EQ VGB 02/12 USD 237.45 -4.5 31.5 -8.5GAM Cross Trading Inc OT OT VGB 02/08 USD 463.70 -0.5 4.0 2.7GAM Diversity CHF Op OT OT VGB 02/08 CHF 93.78 -0.6 3.0 -5.7GAM Diversity EUR Op OT OT VGB 02/08 EUR 645.07 -0.5 3.7 -4.5GAM Diversity USD 2.5XL OT OT VGB 02/08 USD 77.14 -1.5 6.4 NSGAM Diversity USD Op OT OT VGB 02/08 USD 677.63 -0.5 3.8 NSGAM Dvrsty II CHF Op OT OT VGB 02/08 CHF 98.94 -0.6 2.6 -5.4GAM Dvrsty II EUR Op OT OT VGB 02/08 EUR 138.04 -0.5 2.9 -4.6GAM Dvrsty II USD Op OT OT VGB 02/08 USD 209.11 -0.5 3.2 -4.6GAM DvrstyIII EUR Op OT OT VGB 02/08 EUR 114.92 -0.5 2.9 -5.1GAM DvrstyIII USD Op OT OT VGB 02/08 USD 121.37 -0.5 3.2 -5.2GAM Euro Eq Hdg EUR Op EU EQ VGB 02/15 EUR 216.19 -1.2 9.5 -3.1GAM Euro Eq Hdg USD Op OT OT VGB 02/15 USD 200.72 -1.3 10.6 -1.6GAM European Equity USD OT OT VGB 02/16 USD 272.62 -7.0 31.3 -11.6GAM GAMCO OT EQ VGB 02/09 USD 772.76 -4.7 40.7 -9.5GAM Gb EmMkts Hdg EUROp OT OT VGB 02/15 EUR 95.90 -2.0 11.0 -15.5GAM Gb EmMkts Hdg USDOp OT OT VGB 02/15 USD 101.33 -1.8 10.9 -14.7GAM Gbl Divers USD Inc. GL EQ VGB 02/15 USD 242.90 -2.8 26.6 -5.7GAM Grtr China Eq Hdg Op GL EQ VGB 02/08 USD 252.20 -12.0 93.4 18.7GAM Intrst Trend II GL BD VGB 02/08 USD 102.35 8.7 62.1 -4.9GAM Intrst Trend Inc OT OT VGB 02/15 USD 275.16 9.4 76.2 -2.4GAM Japan Eq Hdg EUR Op AS EQ VGB 02/15 EUR 120.90 3.6 14.8 -0.4GAM Japan Eq Hdg USD Op OT OT VGB 02/15 USD 124.04 1.6 17.5 -13.8GAM Japan Eq Hdg YEN Open AS EQ VGB 02/15 JPY 8542.25 1.6 18.0 -12.7GAM Japan USD JP EQ VGB 02/17 USD 1125.62 2.1 27.7 -12.4GAM Japan YEN JP EQ VGB 02/17 JPY 8930.74 1.2 29.1 -18.2GAM Money Mkt EuroOp EU MM VGB 02/16 EUR 51.15 0.1 0.1 1.5GAM Money Mkt USD US MM VGB 02/15 USD 100.02 0.1 0.0 0.6GAM Multi-Arb EUR Op OT OT VGB 02/08 EUR 112.44 1.1 1.3 -6.2GAM Multi-Arb USD Op OT OT VGB 02/08 USD 117.31 1.1 1.5 -8.7GAM Multi-China EUR Op OT OT VGB 02/08 EUR 159.49 -5.0 6.3 -2.5GAM Multi-China USD Op OT OT VGB 02/08 USD 168.13 -4.8 7.2 -2.5GAM Multi-Emer Mkts GBP OT OT VGB 02/08 GBP 127.87 -2.8 22.5 -2.4GAM Multi-Emer Mkts USD OT OT VGB 02/08 USD 633.36 -2.7 22.6 -2.5GAM Multi-Eur EUR Op OT OT VGB 02/08 EUR 264.64 -1.6 4.6 -7.3GAM Multi-Eur II EUR Op OT OT VGB 02/08 EUR 136.17 -1.6 4.6 -4.3GAM Multi-Eur II USD Op OT OT VGB 02/08 USD 111.38 -1.5 4.4 -4.9GAM Multi-Eur USD Op OT OT VGB 02/08 USD 460.58 -1.5 4.4 -8.2GAM Multi-Nth Am EUR Special OT OT VGB 02/08 EUR 133.19 -0.6 9.4 -4.5GAM Multi-Nth Am USD Special OT OT VGB 02/08 USD 216.77 -0.6 9.7 -4.4GAM Multi-Pac EUR Op GL EQ VGB 02/08 EUR 138.85 -3.2 0.6 -2.5GAM Multi-Pac USD Op OT OT VGB 02/08 USD 160.44 -3.0 1.0 -2.5GAM Portable Dvr/S&P500 OT OT VGB 08/24 USD 70.11 17.7 -27.7 -22.9GAM Selection Hdg US EQ VGB 02/12 USD 2650.31 0.5 55.3 11.2GAM Sing/Malaysia AS EQ VGB 02/17 USD 2431.18 -3.7 62.7 -9.0GAM Sterling Spe Bd Inc OT OT VGB 02/15 GBP 238.27 3.6 47.6 6.3GAM Trading EUR Inc OT OT VGB 02/08 EUR 323.56 -0.5 3.6 3.2GAM Trading USD Inc OT OT VGB 02/08 USD 968.58 -0.5 4.0 2.8GAM Trdg II IncEUR Op OT OT VGB 02/08 EUR 138.40 -0.5 3.5 3.2GAM Trdg II IncUSD Op OT OT VGB 02/08 USD 314.50 -0.5 4.0 2.8GAM Trdg IV IncEUR Op OT OT VGB 02/08 EUR 145.99 -0.5 3.3 4.5GAM Trdg IV IncUSD Op OT OT VGB 02/08 USD 153.76 -0.5 3.8 4.1GAM Trdg V IncEUR Op OT OT VGB 02/08 EUR 123.78 -0.5 3.3 4.4GAM Trdg V IncUSD Op OT OT VGB 02/08 USD 129.00 -0.5 3.8 4.0GAM TrdgIII IncEUR Op OT OT VGB 02/08 EUR 156.09 -0.6 3.3 3.0GAM TrdgIII IncUSD Op OT OT VGB 02/08 USD 161.73 -0.5 3.8 2.7GAM USDSpecBondInc US BD VGB 02/15 USD 554.93 4.7 83.6 9.4GAM Worldwide GL EQ VGB 02/16 USD 2097.52 -5.7 34.0 -9.5GAMut Investments OT OT VGB 02/10 USD 7580.41 0.0 1.6 6.8n GAM Star Fund PlcGAMStar-AsEqCHF Ord Ac AS EQ IRL 02/16 CHF 10.47 -5.1 43.6 -12.4GAMStar-AsEqEUR Ord Ac AS EQ IRL 02/16 EUR 11.43 -4.0 47.8 -7.5GAMStar-AsEqGBP Ord Ac AS EQ IRL 02/16 GBP 1.48 -5.6 43.9 -0.2GAMStar-AsEqUSD Ord Ac AS EQ IRL 02/16 USD 12.36 -7.9 59.4 -10.2GAMStar-AsPacEqEUR Acc AS EQ IRL 02/16 EUR 101.77 0.6 23.3 -9.6GAMStar-AsPacEqEUR Inc AS EQ IRL 02/16 EUR 98.49 0.6 23.3 -9.6GAMStar-ContEurEqEUR Ac EU EQ IRL 02/16 EUR 10.58 -3.8 24.5 -6.4GAMStar-EurpEqEUR Acc EU EQ IRL 02/16 EUR 177.57 -3.0 24.1 -8.8GAMStar-EurpEqEUR Inc EU EQ IRL 02/16 EUR 162.25 -3.0 24.1 -8.8GAMStar-EurpEqUSD Acc EU EQ IRL 02/16 USD 14.90 -6.8 33.5 -11.4GAMStar-EurpEqUSD Inc EU EQ IRL 02/16 USD 13.51 -6.8 33.5 -11.4GAMStar-FrontierOppUSD Acc GL EQ IRL 02/16 USD 5.57 1.5 39.2 NSGAMStar-JpnEq EUR Acc JP EQ IRL 02/16 EUR 90.04 2.4 17.0 -8.7GAMStar-JpnEq EUR Inc JP EQ IRL 02/16 EUR 90.05 2.4 17.0 -8.7GAMStar-JpnEq JPY Acc JP EQ IRL 02/16 JPY 911.27 -1.1 23.4 -18.8GAMStar-JpnEq USD Acc JP EQ IRL 02/16 USD 11.14 0.2 21.3 -13.1GAMStar-World EqUSD Acc GL EQ IRL 02/16 USD 2112.58 -5.6 35.0 -9.0n J.P. MORGAN ASSET MANAGEMENTFor additional fund prices, please visit www.jpmorganam.com.sgTel: +65 6882 1328JF China (SGD)A(acc) AS EQ LUX 02/17 SGD 12.77 NS NS NSJF China (USD)A(dist) AS EQ LUX 02/17 USD 44.04 -7.8 69.2 -9.0JF Greater China (SGD)A(acc) AS EQ LUX 02/17 SGD 13.25 NS NS NSJF Greater China (USD)A(dist) AS EQ LUX 02/17 USD 23.76 -6.6 73.1 -5.4JF India (SGD)A(acc) EA EQ LUX 02/17 SGD 13.86 NS NS NSJF India (USD)A(acc) EA EQ LUX 02/17 USD 22.31 -3.9 88.9 -13.6JF Singapore (SGD)A(acc) AS EQ LUX 02/17 SGD 13.84 NS NS NSJF Singapore (USD)A(dist) AS EQ LUX 02/17 USD 26.80 -4.0 99.7 -9.8JPM Emerg Mkt Eq (SGD)A(acc) GL EQ LUX 02/17 SGD 13.63 NS NS NSJPM Emerg Mkt Eq (USD)A(dist) GL EQ LUX 02/17 USD 27.21 -4.4 77.5 -7.8JPM Glb Dyn (SGD)A(acc) GL EQ LUX 02/17 SGD 13.76 NS NS NSJPM Glb Dyn (USD)A(dist) GL EQ LUX 02/17 USD 11.57 -3.4 42.5 -11.5JPM Glb Nat Res (EUR)A(dist) GL EQ LUX 02/17 EUR 15.74 3.8 80.9 -11.1JPM Glb Nat Res (SGD)A(acc) GL EQ LUX 02/17 SGD 20.88 NS NS NSJPM Glb Nat Res (USD)A(acc) GL EQ LUX 02/17 USD 15.34 -1.0 96.7 -14.1n MANULIFE ASSET MANAGEMENT TEL:(852)2108 1110Internet:http://www.manulife.com.hk 47/F Manulife Plaza, Causeway Bay, Hong KongAmerican Growth US EQ LUX 02/18 USD 14.95 -2.1 35.2 -9.7American Growth AA US EQ LUX 02/18 USD 0.86 -2.1 34.8 -7.2Asian Equity AS EQ LUX 02/18 USD 2.30 -6.1 69.3 -9.1Asian Equity AA AS EQ LUX 02/18 USD 0.74 -6.1 68.7 -9.4Asian Sm Cap Equity AA AS EQ LUX 02/18 USD 1.12 -2.9 98.4 -2.5China Value A AS EQ LUX 02/18 USD 6.52 -8.4 57.1 -6.3China Value AA AS EQ LUX 02/18 USD 2.05 -8.4 56.7 -6.5Dragon Growth AS EQ LUX 02/18 USD 1.54 -6.5 62.4 -7.6Dragon Growth AA OT OT LUX 02/18 HKD 7.48 -6.3 62.3 -8.5Emg Eastrn Europe A EU EQ LUX 02/18 USD 4.47 -3.0 136.9 -15.6Emg Eastrn Europe AA EU EQ LUX 02/18 USD 1.93 -3.0 136.6 -15.8European Growth EU EQ LUX 02/18 USD 8.53 -6.9 60.6 -15.4European Growth AA EU EQ LUX 02/18 USD 0.61 -6.9 60.2 -15.6Global Contrarain AA GL EQ LUX 02/18 USD 0.91 3.1 111.0 NSGlobal Property AA OT EQ LUX 02/18 USD 0.65 -3.8 77.6 -12.7Global Resources AA OT EQ LUX 02/18 USD 1.05 -3.5 45.1 -13.5Healthcare AA OT EQ LUX 02/18 USD 0.94 -0.2 17.1 NSIndia Equity AA EA EQ LUX 02/18 USD 1.03 -6.2 82.0 -15.0International Growth GL EQ LUX 02/18 USD 2.96 -2.9 35.4 -13.2International Growth AA GL EQ LUX 02/18 USD 0.69 -2.9 35.0 -13.4Japanese Growth JP EQ LUX 02/18 USD 2.76 0.2 26.7 -10.6Japanese Growth AA JP EQ LUX 02/18 USD 0.73 0.8 27.3 -10.5Latin America Equity AA GL EQ LUX 02/18 USD 1.22 -5.0 96.8 -4.8Manulife GF Strategic Income Fund AA OT OT NA 02/18 USD 1.01 0.3 NS NSMGF Asia Value Dividend Equity Fund OT OT Lux 02/18 USD 1.11 -2.9 NS NSRussia Equity AA EE EQ LUX 02/18 USD 0.65 4.8 160.6 -19.4Taiwan Equity AA AS EQ LUX 02/10 USD 0.97 -10.4 74.8 0.3Turkey Equity AA EE EQ LUX 02/18 USD 0.77 -0.3 159.0 -3.4U.S. Bond AA US BD LUX 02/18 USD 1.12 1.4 17.0 8.0U.S. Sm Cap Equity AA US EQ LUX 02/18 USD 0.86 5.3 80.2 -6.9U.S. Special Opportunities OT OT LUX 02/18 USD 0.86 6.1 97.3 6.0U.S. Tsy Inf-ProtSec AA OT BD LUX 02/18 USD 1.14 0.2 6.9 1.9n PT CIPTADANA ASSET MANAGEMENTTel: +62 21 25574 883 Fax: +62 21 25574 893 Website: www.ciptadana.comIndonesian Grth Fund EA EQ CYM 02/10 USD 124.51 -2.2 125.8 -3.3n SENSIBLE ASSET MANAGEMENT LIMITEDwww.samfund.com.hk Tel: (852) 2868 6848 Fax: (852) 2810 9948Asia Value Formula Fd-B AS EQ CYM 02/17 USD 7.82 -3.9 86.2 -2.6n SG ASSET MANAGEMENT (HK) LTDHotline in Hong Kong 2166 5099A company of Amundi Groupwww.sgam.comBonds Eur Hi Yld A OT OT LUX 02/16 EUR 20.78 0.9 49.3 4.0Bonds EURO A OT OT LUX 02/16 EUR 41.31 0.7 4.4 4.5Bonds EUROPE A OT OT LUX 02/16 EUR 39.45 0.9 3.1 4.0Bonds US OppsCoreplus A OT OT LUX 02/16 USD 37.40 1.4 15.1 8.2Bonds World A OT OT LUX 02/16 USD 41.59 -1.0 10.0 4.1Eq. AsiaPac Dual Strategies A OT OT LUX 02/17 USD 9.83 -5.7 71.7 -9.7Eq. China A AS EQ LUX 02/17 USD 21.95 -9.0 60.0 -11.8Eq. Concentrated Euroland A OT OT LUX 02/16 EUR 86.66 -6.8 19.9 -16.0Eq. ConcentratedEuropeA EU EQ LUX 02/16 EUR 25.70 -4.9 31.7 -14.6Eq. Emerging Europe A OT OT LUX 02/16 EUR 24.14 2.5 92.0 -20.6Eq. Euroland A EU EQ LUX 02/16 EUR 10.16 -6.2 20.7 -16.4Eq. Euroland Small Cap A OT OT LUX 02/16 EUR 136.36 -3.4 36.0 -8.5Eq. EurolandCyclclsA EU EQ LUX 02/16 EUR 17.33 -2.6 28.5 -11.6Eq. EurolandFinancialA OT EQ LUX 02/16 EUR 10.03 -11.3 45.0 -19.1Eq. Glbl Emg Cty A GL EQ LUX 02/16 USD 8.80 -9.1 56.7 -15.9Eq. Global A GL EQ LUX 02/16 USD 26.81 -3.8 37.6 -11.2Eq. Global Energy A OT EQ LUX 02/16 USD 17.50 -3.5 26.0 -13.6Eq. Global Resources A OT OT LUX 02/16 USD 105.36 -3.5 44.4 -12.1Eq. Gold Mines A OT EQ LUX 02/16 USD 29.26 -3.4 34.3 -3.6Eq. India A OT OT LUX 02/17 USD 124.03 -5.1 81.8 -15.0Eq. Japan CoreAlpha A OT OT LUX 02/17 JPY 7448.26 2.7 39.5 -8.0Eq. Latin America A OT OT LUX 02/16 USD 108.29 -6.8 68.4 -11.4Eq. US Lg Cap Gr A US EQ LUX 02/16 USD 14.83 -2.8 35.6 -9.6Eq. US Rel Val A US EQ LUX 02/16 USD 20.26 -1.6 40.7 -12.6Eq. US Sm Cap Val A US EQ LUX 02/16 USD 15.88 -0.4 34.0 -15.9Money Market EURO A EU MM LUX 02/16 EUR 27.41 0.0 0.7 2.4Money Market USD A US MM LUX 02/16 USD 15.83 0.0 0.4 1.4n THE NATIONAL INVESTORTNI Tower | Zayed 1st Street Khalidia| Web:www.tni.aeTNI Mena Real Estate Fund OT OT BMU 02/11 USD 921.37 -4.1 6.6 -28.6TNI MENA Special Sits Fund OT OT BMU 01/31 USD 1091.50 1.1 13.6 NSTNI UAE Blue Chip Fund OT OT ARE 02/11 AED 5.06 -5.1 28.4 -34.3n WEBSITE: WWW.VALUEPARTNERS.COM.HK, TEL: (852) 2880 9263, FAX: (852) 2564 8487*formerly known as China ABH Shares FundIntel-Chin Mainlnd Foc AS EQ CYM 01/29 USD 28.14 -5.7 85.5 2.1Intel-China Converg* AS EQ CYM 01/29 USD 107.04 -6.1 85.8 1.1VP Classic - A AS EQ CYM 02/17 USD 178.55 -4.3 74.5 1.9VP CLassic - B AS EQ CYM 02/17 USD 83.17 -4.3 73.6 1.4VP High Dividend Stk AS EQ CYM 02/08 USD 43.34 -4.6 79.8 2.1n YUKI INTERNATIONAL LIMITEDTel +44-207-269 0203 www.yukifunds.comn YMR-N SeriesYMR-N Growth Fund OT OT IRL 02/15 JPY 8891.00 -6.0 19.9 -20.5YMR-N Small Cap Fund OT OT IRL 02/15 JPY 6576.00 -6.2 17.4 -20.4n Yuki 77 SeriesYuki 77 General JP EQ IRL 02/18 JPY 5871.00 -4.6 16.1 -23.5Yuki 77 Growth JP EQ IRL 02/18 JPY 5382.00 -4.6 11.0 -26.8n Yuki Chugoku SeriesYuki Chugoku Jpn Gen JP EQ IRL 02/18 JPY 6694.00 -1.9 24.8 -19.0Yuki Chugoku JpnLowP JP EQ IRL 02/18 JPY 7600.00 0.8 12.9 -18.0n Yuki Hokuyo Japan SeriesYuki Hokuyo Jpn Gen JP EQ IRL 02/18 JPY 4582.00 -1.9 18.6 -22.9Yuki Hokuyo Jpn Inc JP EQ IRL 02/18 JPY 5203.00 -0.9 17.6 -17.9Yuki Hokuyo Jpn Sm Cap JP EQ IRL 02/18 JPY 4829.00 -5.4 19.6 -19.4n Yuki Mizuho SeriesYuki Mizuho Gen Jpn III OT OT IRL 02/18 JPY 4237.00 -4.1 19.2 -27.0Yuki Mizuho Jpn Dyn Gro OT OT IRL 02/18 JPY 4460.00 -4.4 19.0 -27.2Yuki Mizuho Jpn Exc 100 OT OT IRL 02/18 JPY 6674.00 -4.3 29.7 -21.6Yuki Mizuho Jpn Gen OT OT IRL 02/18 JPY 8330.00 -3.3 25.1 -19.5Yuki Mizuho Jpn Gro OT OT IRL 02/18 JPY 6129.00 -3.6 17.8 -21.4Yuki Mizuho Jpn Inc OT OT IRL 02/18 JPY 7515.00 -1.6 9.0 -20.0Yuki Mizuho Jpn Lg Cap OT OT IRL 02/18 JPY 5076.00 -2.2 22.9 -20.8Yuki Mizuho Jpn LowP OT OT IRL 02/18 JPY 11433.00 -1.1 22.7 -14.9Yuki Mizuho Jpn PGth OT OT IRL 02/18 JPY 7563.00 -5.0 18.5 -24.5Yuki Mizuho Jpn SmCp OT OT IRL 02/18 JPY 6650.00 -6.8 26.5 -21.4Yuki Mizuho Jpn Val Sel OT OT IRL 02/18 JPY 5573.00 -1.3 24.5 -17.1Yuki Mizuho Jpn YoungCo OT OT IRL 02/18 JPY 2657.00 -2.5 24.9 -25.3n Yuki Shizuoka Japan SeriesYuki Shizuoka General Japan JP EQ IRL 02/18 JPY 5270.00 -2.8 24.6 -20.5MARKETSTravelers, H-P leadU.S. stock gainsNEW YORK—U.S. stocks clung tonarrow gains as earnings reportsboosted technology stocks butweighed on consumer goods, overshadowingthe morning’s batch oflargely disappointing U.S. economicdata.The Dow Jones Industrial Averagewas up 28.34 points, or 0.3%, to10337.58 in midday trade.Insurance provider Travelerswas the measure’s top performer, up1.5%. Hewlett-Packardfirmed 1% afterreporting a 25%profit rise in thefirst quarter and a boost to its fiscal-yearrevenue outlook.Wal-Mart fell 1.6% after postinga 22% gain in fourth-quarter profit,but providing tepid first-quarterearnings guidance. The retail giant’ssales fell at U.S. stores open morethan a year.The Nasdaq Composite added0.2% to 2230.02, and the Standard &Poor’s 500-share index added 0.1%to 1101.10. Materials stocks climbed,boosted by Bank of America MerrillLynch’s upgrade of steel productsmaker Nucor to neutral from underperform,citing an increased steelpriceview. Nucor added 1.9%.Investors said they were disappointedby the U.S. jobs and inflationdata, but said the recent improvementsin housing starts andmanufacturing data still supporteda broad, if slow recovery.Among other companies reportingearnings, Priceline.com jumped9.5% after its fourth-quarter profitmore than doubled, as bookingscontinued to soar at the onlinetravel company. Revenue topped thecompany’s bullish expectations andit projected strong first-quarter results.European stocksBenchmark indexes firmed on amixed set of earnings reports.The pan-European Dow JonesStoxx 600 index gained 0.6% to249.14, its fourth consecutive increase.Among major national indexes,the German DAX added 0.6% to5680.41, the French CAC-40 indexadvanced 0.6% to 3747.83 and theU.K. FTSE 100 index rose 0.9% to5325.09.Engineering group ABB climbed7.6% in Zurich as fourth-quarterprofit more than doubled and thefirm raised its dividendU.K. aerospace and defensegroup BAE Systems advanced 4.3%in London on a dividend increaseand a plan to buy back shares.But German car giant Daimlerdropped 4.7% after it said itwouldn’t pay a dividend following alarger-than-expected quarterly loss.Société Générale fell 7.2% inParis as provisions rose sharply andthe lender cut its dividend.BY KRISTINA PETERSONAND DONNA KARDOS YESALAVICHABREAST OFTHE MARKETCIC sets sightson secondaryprivate equityHONG KONG—China’s $300 billionsovereign-wealth fund, ChinaInvestment Corp., has mandatedthree managers, including GoldmanSachs Group Inc., to invest $1.5 billionin the private-equity secondarymarket, a person familiar with thesituation said Thursday.The mandate by CIC to invest insecondary private equity—the saleby a private-equity fund of a holdingto another private-equity fund—wasgiven to the three managers latelast year, and is part of CIC’s effortsto diversify its investment portfolio,the person said. News of the investmentmandate was first reported bythe Financial Times on Thursday.The three managers—GoldmanSachs, secondary-fund firm LexingtonPartners Inc., and private-equityfirm Pantheon VenturesLtd.—were each mandated to manageUS$500 million, the person said.CIC bought a $3 billion stake inBlackstone LP, one of the largestU.S. private-equity firms, in June2007, and has also made investmentsin several listed companies,including Singapore-listed commoditiestrader Noble Group Ltd. andCanadian-listed coal miner South-Gobi Energy Resources Ltd., whichraised $462 million in a Hong Konginitial public offering this year.It wasn’t clear whether any investmentsalready have been made.A CIC official said in a text messagethat she was unaware of the matter.BY AMY ORAustralia shares decline;Tokyo ekes out a gainMost Asian markets fell Thursday,with Australian shares underpressure as Qantas Airways disappointedinvestors with its first-halfresults, while miners declined afterthe International Monetary Fundsaid it plans to sell gold on the openmarket.The broad decline came on thintrading volumes and despite positiveovernightcues from WallStreet, as investorsbookedprofits from recent gains, especiallyin the wake of Wednesday’s strongperformance across the region.European nations’ debt problemswere also still at the back of investors’minds. “We are not hearinganything positive about Europeright now,” said Deutsche Securitiessenior foreign-exchange strategistKoji Fukaya.Australia’s S&P/ASX 200 fell 0.3%to 4654.91 Hong Kong’s Hang SengIndex lost 0.5% to 20422.15 andSouth Korea’s Kospi fell 0.4% to1621.19.Japan’s Nikkei Stock Average of225 companies ended up 0.3% at10335.69 after a seesaw session. India’sSensex fell 0.6% to 16327.84.Markets in China, Taiwan and Vietnamremained closed for the LunarNew Year holidays.In Sydney, Qantas Airways tumbled8.1% after reporting a fiscalfirst-half profit that fell short of expectationsand after the companysaid it won’t pay a dividend, giventhe challenging environment.Fund manager AMP declined1.8% after it posted full-year profiton the lower side of expectations.AMP said it remains interested in rivalAXA Asia Pacific, fueling speculationit could come back with ahigher offer for the wealth-managementgroup. AXA Asia rose 1%.Gold stocks fell across the regionafter the IMF surprised traders bysaying it will sell 191.3 tons of themetal on the open market. LihirGold lost 3.5% and Eldorado Goldshed 3% in Sydney, with Zijin MiningGroup losing 1.8% in Hong Kongand Sumitomo Metal Mining sliding0.8% in Tokyo.In Tokyo, banks gained after theBank of Japan left its interest rateat 0.1%, as widely expected, whilemaintaining its assessment on thestate of the economy. MitsubishiUFJ Financial Group rose 1.1% andAozora Bank gained 2.6%.Recent gainers such as shippingstocks and commodity producers retreated,with Nippon Yusen sliding1.2%, while Marubeni gave up 0.9%.In Hong Kong, Chinese banks retracedsome of their gains from theprevious session, with Industrial &Commercial Bank of China shrinking0.9% and China ConstructionBank shedding 1%.Sands China slumped 5.7% inHong Kong after the casino operator’sparent, Las Vegas Sands, reporteda quarterly loss amid expectationsof a profit.BY LESLIE SHAFFERAND KIRSTY GREENASIAN-PACIFICSTOCKS>11Corporate News:Gives you the latest corporate news fromaround the globe, with extensive analysisfrom Asia as well as industry-leadingcoverage from the U.S. and Europe.Markets:Provides updated stock,currency and fund marketnews, analysis and data inAsia and U.S. markets.THE WALL STREET JOURNAL. Wednesday, February 10, 2010PAGE TWOE TODAYooContinuing coverageFollow the latest newsfrom across India atindia.wsj.com.Health Blogblogs.wsj.com/healthTo expand itsbusiness in emergingmarkets, Pfizer isoffering a card thatpatients can presentat the pharmacy toget a discount ontheir drugs.-llenidsets could take more time as thegovernment upgrades the Mongolianstock exchange. 26n Vedanta Resources defendedits industrial and mining practicesin the Indian state of Orissa, rebuttinga report by Amnesty Internationalthat accused it of pollutionand displacing tribes. 21n NYSE Euronext said a plannedoverhaul of Europe’s trading rulescould reduce competitive heat. 24i i iWorld-Widen Iran said it began enrichingsome low-grade uranium for usein a medical-research reactor,brushing off fresh internationalthreats of economic sanctions. 8n Speculation that the leader ofthe Pakistan Taliban has diedfrom wounds sustained last monthin a U.S. missile strike intensifiedwith midranking Taliban fighterssaying Hakimullah Mehsud wasdead even though the militants’spokesman issued a fresh denial. 6n Aid groups in Pakistan neednearly $538 million over the nextsix months to help hundreds ofthousands of people displaced byarmy clashes against the Taliban,the U.N. said in a global appeal.n Bollywood clashed with localpolitics in Mumbai as backers of aright-wing party attacked cinemasto protest remarks by one of India’sbiggest stars. 3n China sentenced earthquake activistTan Zuoren to five years inprison, the government’s latestmove in an escalating campaign tostrangle dissent. 4n China said its water is farmore polluted and its industry isproducing more waste than previouslyrealized, in a study environmentalistswelcomed as a step towardgreater transparency. 4n Malaysia’s highest court threwout an opposition attempt to reclaimpolitical control of an importantstate, underscoring the judiciary’spivotal role indetermining the balance of powerin the country. 5n Afghanistan was hit by avalanchesalong a high mountainroad that buried hundreds of cars,left at least 28 people dead andsevered a key artery connectingKabul with the country’s north. 6n A senior U.N. envoy arrived inNorth Korea, the world body’shighest-level visit to the nation innearly six years.aksa, returning Tuesday from a visit tobo. He dissolved parliament Tuesday,a day after authorities arrested the leaderf Gen. Sarath Fonseka, on charges het while running the army. Page 6.News—InsideIn Depth: No exit insight as Freddie,Fannie flail. 14-15Business & Finance:What CIC disclosuressay about strategy. 18Corporate News:MGM Mirage to shedNew Jersey casino. 19Heard on the Street:Yuan’s rise needs lessforeign rhetoric. 32THE WALL STREET JOURNAL ASIADow Jones Publishing Company (Asia)25/F, Central Plaza, 18 Harbour Road, Hong KongTel 852-2573 7121 Fax 852-2834 5291www.wsj-asia.comSUBSCRIPTIONS and Address Changes, pleasetelephone our local customer service hotline, HongKong/Taiwan: 852-2831 2555; Beijing: 86-10 6581 4090;Shanghai: 86-21 5836 8228; Indonesia: 62-21 344 1101;Japan: 81-3 6269-2760; Korea: 82-2 756 1695; Malaysia:60-3 2026 4061; Philippines: 63-2 848 5873; Singapore:65-6415 4000; Thailand: 66-2 652 0871. Or email:service@wsj-asia.comADVERTISING SALES worldwide through Dow JonesInternational. Hong Kong: 852-2831 2504; Singapore:65-6415 4300; Tokyo: 81-3 6269-2701; Frankfurt: 49 6929725390; London: 44 207 842 9600; Paris: 33 1 40 1717 01; New York: 1-212 659 2176. Or email:wsja.publisher@dowjones.comTrademarks appearing herein are used under license fromDow Jones & Company. USPS 337-350ISSN 0377-9920Wednesday, February 10, 2010 THE WALL STREET JOURNAL. 31Dow Jones Industrial Average P/E: 16LAST: 10038.08 s 129.69, or 1.31%YEAR TO DATE: t 389.97, or 3.7%OVER 52 WEEKS s 2,149.20, or 27.2%*Price-to-earnings ratio for the Nasdaq 100 Note: Price-to-earnings ratios are for trailing 12 months Sources: WSJ Market Data Group; Birinyi Associates115001100010500100009500900013 20 27 4 11 18 24 31Dec.8 15 22 29Jan.5Feb.HighCloseLow50–daymoving averagetNasdaq Composite Index P/E: 20*LAST: 2147.40 s 21.35, or 1.00%YEAR TO DATE: t 121.75, or 5.4%OVER 52 WEEKS s 622.67, or 40.8%24002300220021002000190013 20 27 4 11 18 24 31Dec.8 15 22 29Jan.5Feb.S&P 500 Index P/E: 27LAST: 1068.04 s 11.30, or 1.07%YEAR TO DATE: t 47.06, or 4.2%OVER 52 WEEKS s 240.88, or 29.1%1200115011001050100095013 20 27 4 11 18 24 31Dec.8 15 22 29Jan.5Feb.DJIA component stocksVolume,CHANGEStock Symbol in millions Latest Points PercentageAT&T T 12.40 $25.29 0.31 1.23%Alcoa AA 18.40 13.34 0.28 2.14AmExpress AXP 5.00 37.47 0.68 1.85BankAm BAC 131.70 14.49 0.01 0.07Boeing BA 2.60 59.28 1.39 2.40Caterpillar CAT 8.20 53.70 2.92 5.75Chevron CVX 5.70 71.60 1.47 2.10CiscoSys CSCO 24.00 23.93 0.43 1.83CocaCola KO 8.40 54.68 2.03 3.85Disney DIS 5.00 29.84 0.36 1.22DuPont DD 3.00 32.86 0.67 2.08ExxonMobil XOM 18.40 65.29 0.94 1.46GenElec GE 40.20 15.66 0.06 0.38HewlettPk HPQ 6.60 48.49 0.90 1.89HomeDpt HD 7.50 28.84 0.25 0.87Intel INTC 26.70 19.71 0.36 1.86IBM IBM 2.60 123.67 1.79 1.47JPMorgChas JPM 21.80 38.33 0.63 1.67JohnsJohns JNJ 5.70 63.13 0.76 1.22KftFoods KFT 9.00 28.87 0.50 1.78McDonalds MCD 4.90 63.25 0.33 0.52Merck MRK 5.30 36.67 0.08 0.22Microsoft MSFT 24.80 28.06 0.34 1.23Pfizer PFE 27.40 17.94 0.10 0.56ProctGamb PG 4.30 61.68 0.67 1.093M MMM 1.60 79.02 1.49 1.92TravelersCos TRV 2.30 49.44 0.39 0.80UnitedTech UTX 2.20 66.64 1.24 1.89Verizon VZ 11.10 28.97 0.60 2.11WalMart WMT 4.20 53.39 0.46 0.87U.S. stocks: most active...Volume,CHANGEStock Symbol in millions Latest Points PercentageCitigroup C 281.1 $3.19 $0.04 1.27%SPDR S&P 500 SPY 152.5 107.34 1.45 1.37BankAm BAC 135.5 14.50 0.02 0.14SPDR FnclSelSct XLF 71.0 13.79 0.13 0.95iShrMSCIEmrgMkt EEM 56.2 38.00 1.17 3.18PwrShrs QQQ QQQQ 55.8 43.19 0.52 1.22DrxFinancBear 3x FAZ 48.9 21.25 –0.56 –2.57FordMotor F 43.3 11.13 0.16 1.44GenElec GE 41.5 15.62 0.02 0.13iShrRu2000 IWM 37.6 59.30 0.62 1.06CellThrp CTIC 36.1 0.79 0.15 23.42ProShrsUShrt S&P SDS 35.1 37.34 –1.12 –2.91ElectroArts ERTS 30.1 15.82 –1.67 –9.55Pfizer PFE 28.0 17.90 0.06 0.34Intel INTC 27.3 19.71 0.36 1.86Biggest gainers...AmComrclLine ACLI 338.7 $20.20 $4.04 25.00%TrubionPharm TRBN 38.6 3.85 0.70 22.22EncoreCap ECPG 164.5 17.25 2.59 17.67NtlBkGrc ADS NBG 4,687.0 3.99 0.57 16.67HarmanInt HAR 3,337.3 41.25 5.75 16.20...Biggest losersTrmrkWldwd TMRK 1,449.0 $6.52 -$1.27 -16.30%Voltaire VOLT 70.4 5.24 -0.88 -14.38ToreadorRescs TRGL 2,516.9 8.71 -1.45 -14.27Conns CONN 553.9 4.61 -0.74 -13.76DrxDlLtAmBear 3x LHB 26.6 54.02 -7.10 -11.62ADRs of Asian companies*52-WEEK Volume, CHANGEHigh Low Stock Symbol in OOOs Latest Points Percentage$11.69 $6.88 Taiwan Semi TSM 16,682.3 $9.63 0.02 0.21%15.95 8.65 China Unicom CHU 4,016.0 10.99 0.36 3.3991.97 56.79 Toyota Motor TM 2,661.6 74.85 2.00 2.7582.74 33.09 BHP Billiton BHP 2,488.6 71.31 3.41 5.0213.30 6.35 AU Optrncs AUO 2,327.8 11.23 0.40 3.698.19 4.18 Siliconware Prec Ind SPIL 1,314.1 6.21 0.08 1.314.24 1.65 Utd Microelectronics UMC 1,179.3 3.58 0.08 2.296.84 3.71 Mitsu UFJ Fnl MTU 994.7 5.13 0.04 0.7959.13 22.61 Infosys Tech INFY 961.5 52.88 1.76 3.4434.27 10.70 Aluminum Cp of China ACH 859.6 23.77 0.95 4.1659.22 40.20 China Mobile CHL 632.9 49.00 1.04 2.1718.20 6.85 Korea Elec Pwr KEP 341.4 16.19 0.17 1.0681.00 38.70 China Life Ins LFC 309.4 63.56 1.06 1.7021.78 11.30 KT Corp KT 304.9 20.03 0.04 0.2018.64 12.59 SK Telecom SKM 300.5 17.00 0.18 1.0735.59 15.64 Sony SNE 297.0 33.70 0.69 2.095.23 1.57 Adv Semi Engrg ASX 248.8 4.16 0.11 2.729.50 3.96 Nomura Hldgs NMR 244.2 7.23 0.08 1.12150.50 47.09 POSCO PKX 199.6 114.69 6.46 5.9794.00 46.45 China Petro & Chem SNP 192.9 75.36 1.50 2.0325.65 5.11 Yanzhou Coal Mining YZC 183.7 19.45 0.71 3.79135.92 63.94 PetroChina PTR 162.3 108.88 2.58 2.4337.23 20.72 Honda Motor HMC 157.7 34.50 0.69 2.047.74 2.00 Alumina AWC 145.9 5.64 0.22 4.0624.09 17.71 NTT NTT 127.8 22.14 0.18 0.8234.43 21.60 Huaneng Power Intl HNP 125.1 23.83 0.82 3.56171.59 75.59 CNOOC CEO 115.1 152.19 6.85 4.7143.95 21.23 Canon CAJ 110.6 39.61 0.74 1.9021.22 16.33 ChunghwaTel CHT@ 92.9 18.65 0.18 0.979.82 5.43 Telecom Corp of NZ NZT 90.1 8.00 0.11 1.39*Most active American depositary receipts tracked by Dow JonesSource: WSJ Market Data GroupGlobal government bondsLatest, month-ago and year-ago yields and spreads over or under U.S. Treasurys on benchmark two-yearand 10-year government bonds around the world. Data as of 11 a.m. ETCountry/ SPREAD OVER TREASURYS, in basis points YIELDCoupon Maturity, in years Yield Latest Previous Month ago Year ago Previous Month ago Year ago5.750% Australia 2 4.445% 365.8 364.2 352.0 183.3 4.425% 4.505% 2.852%4.500 10 5.467 188.4 190.1 192.5 137.0 5.488 5.759 4.3625.000 Austria 2 1.550 76.3 76.3 70.1 37.2 1.546 1.686 1.3913.900 10 3.655 7.2 10.9 -0.7 127.6 3.696 3.827 4.2682.000 Belgium 2 1.373 58.6 62.9 0.0 38.5 1.412 0.985 1.4043.750 10 3.706 12.3 14.9 -13.2 135.1 3.736 3.702 4.3431.500 Canada 2 1.254 46.7 47.7 33.0 16.2 1.260 1.315 1.1813.750 10 3.365 -21.8 -21.6 -23.5 8.6 3.371 3.599 3.0784.000 Denmark 2 1.784 99.7 98.4 108.6 149.1 1.767 2.071 2.5104.000 10 3.497 -8.6 -10.9 -18.4 81.5 3.478 3.650 3.8073.750 France 2 1.159 37.2 31.0 18.5 55.7 1.093 1.170 1.5763.500 10 3.491 -9.2 -9.0 -24.5 82.5 3.497 3.589 3.8171.250 Germany 2 1.018 23.1 22.3 27.5 42.4 1.006 1.260 1.4433.250 10 3.152 -43.1 -45.2 -44.8 40.4 3.135 3.386 3.3960.550 Hong Kong 2 0.646 -14.1 -13.2 -38.4 -39.0 0.651 0.601 0.6292.160 10 3.027 -55.6 -55.1 -85.1 -121.7 3.036 2.983 1.7755.000 Italy 2 1.782 99.5 109.2 48.0 119.4 1.875 1.465 2.2134.250 10 4.045 46.2 51.4 24.2 154.5 4.101 4.076 4.5370.200 Japan 2 0.165 -62.2 -62.3 -81.0 -58.1 0.160 0.175 0.4381.300 10 1.347 -223.6 -222.7 -246.5 -168.3 1.360 1.369 1.3092.500 Netherlands 2 1.099 31.2 28.9 -19.3 71.4 1.072 0.792 1.7333.500 10 3.488 -9.5 -10.3 -29.4 99.6 3.484 3.540 3.9883.200 Portugal 2 2.123 133.6 144.1 24.4 83.0 2.224 1.229 1.8494.750 10 4.602 101.9 121.8 17.9 144.8 4.805 4.013 4.4405.350 Spain 2 1.708 92.1 107.0 45.1 122.2 1.853 1.436 2.2414.000 10 4.079 49.6 55.0 14.0 140.8 4.137 3.974 4.4002.750 Switzerland 2 0.455 -33.2 -32.5 -35.1 -55.9 0.458 0.634 0.4602.250 10 1.944 -163.9 -164.3 -170.6 -79.5 1.944 2.128 2.1973.250 U.K. 2 1.196 40.9 47.4 28.6 64.8 1.257 1.271 1.6674.500 10 3.953 37.0 34.6 23.0 76.9 3.933 4.064 3.7610.875 U.S. 2 0.787 ... ... ... ... 0.783 0.985 1.0193.375 10 3.583 ... ... ... ... 3.587 3.834 2.992Source: Thomson ReutersKey money ratesLatest52 wks agoPrime ratesU.S. 3.25% 3.25%Canada 2.25 3.00Japan 1.475 1.475Britain 0.50 1.00ECB 1.00 2.00Switzerland 0.53 0.52Australia 3.75 3.25Hong Kong 5.25 n.a.LiborOne month 0.22844% 0.44688%Three month 0.25000 1.22188Six month 0.38875 1.68625One year 0.84625 1.98688Latest52 wks agoEuro LiborOne month 0.38438% 1.65875%Three month 0.59813 1.99250Six month 0.91938 2.07625One year 1.20000 2.18000HiborOne month 0.07000 0.19643%Three month 0.13000 0.79214Six month 0.24929 1.14786One year 0.54714 1.55000Asian dollarsOne month 0.2396% 0.46%Three month 0.2566 1.2180Six month 0.3890 1.7020One year 0.8460 1.9840OfferBidEurodollarsOne month 0.3000% 0.2000%Three month 0.3300 0.2300Six month 0.5500 0.3500One year 0.8500 0.5000Latest52 wks agoU.S. discount 0.50% 0.50%Fed-funds target 0.25 0.25Call money 2.00 2.00Overnight repurchase ratesU.S. 0.18% 0.28%U.K. (BBA) 0.510 0.850Euro zone 0.31 1.23Sources: WSJ Market Data Group; ReutersU.S. Treasury yield curveThe curve shows the yield to maturity of current bills, notes and bonds; all data as of 3 p.m. ET.1month(s)3 6 1years2 3 5 710 30maturity5%43210sOne year agosMondayTOTAL RETURNYield to Modified Month Quarter YearRyan Index maturity duration to-date to-date to-date 12-month30-year Treasury 4.523% 16.22 –0.11 % 2.32 % 2.32 % –9.71 %10-year Treasury 3.592 8.17 0.23 2.41 2.41 –1.717 Year Treasury 3.032 6.23 0.41 2.74 2.74 ...Five-year Treasury 2.263 4.68 0.48 2.13 2.13 2.95Ryan Index 2.580 6.69 0.24 2.00 2.00 0.203 Year Treasury 1.282 2.87 0.30 1.44 1.44 3.54Two-year Treasury 0.787 1.96 0.11 0.89 0.89 2.451 Year Treasury 0.295 0.93 0.01 0.21 0.21 1.26Six-month Treasury 0.173 0.50 ... 0.03 0.03 0.65Ryan Cash Index-a 0.152 0.44 ... 0.06 0.06 0.61Three-month bill 0.112 0.25 ... 0.01 0.01 0.38One-month bill 0.030 0.07 ... ... ... 0.14a-Performance of a cash investmentSource: Ryan ALMSCANNING THE GLOBEScanning the globe:A round-up of U.S. marketactivity, with benchmarkindexes along with theprevious day’s most activeissues, gainers and losers,performance data for the30 Dow Jones IndustrialAverage components andthe most active AmericanDepository Receipts of keyregional companies.

Heard on The StreetEvery day, Heard on The Street brings you the first word on the topics and stocks that are getting the professionalstalking. Heard on The Street moves markets and it rivets readers, providing a broad mix of agenda-setting analysisand commentary. A must-read for financial professionals, corporate decision-makers and retail investors, thiscolumn takes a critical, sharp-eyed look at companies in the news.32 THE WALL STREET JOURNAL. Wednesday, January 13, 2010HEARD ON THE STREETEmail: heard@wsj.com FINANCIAL ANALYSIS & COMMENTARY WSJ.com/HeardSpeculative hordesoverwhelm ChinaDespite its huge reach, the GreatWall of China was never much goodat keeping China’s enemies at bay.The same could be said of the barriersto foreign money inflows thecountry has erected over the years.Now Beijing is again upping therhetoric about keeping speculativemoney out. The country’s top policymakingbody over the weekend orderedgreater vigilance from relevantgovernment departments to restrictcross-border investment and financingactivities.The unofficial channels throughwhich hot money flows mean that exactdata on the extent of the problemaren’t available. Analysts tend tocount as hot money any increase inChina’s foreign-exchange reserves ina given month that isn’t explained byforeign direct investment or thetrade surplus.By that measure, the inflows areheavy. Morgan Stanley estimatesnearly $26 billion of inflows in thethird-quarter—the latest period forwhich foreign-exchange reserve figuresare available—could well be attributableto hot money.Such money arrives in any numberof ways through China’s long andporous borders, from exporters overinvoicingto people smuggling insuitcases full of cash.And, as Tsinghua University professorof finance Michael Pettispoints out, history shows that thelonger countries such as China keepcapital controls in place, the morepeople find ways to get around them.There has been plenty to attractinflows lately. Speculation is rifethat, with exports on the rise again,China will resume the appreciation ofits currency this year. Rising propertyand stock markets, partly fueledby a bank-lending binge taking placewithin China’s borders, offer anothertarget for speculators.A senior official in China’s economic-planningagency warned lastweek of the potential for huge hot--money inflows this year. At a timewhen inflationary pressures are gathering,the extra money supply isn’twelcome; and, of course, policy makersalso worry about outflows thatcan exacerbate any eventual downturn.But it will be hard for the authoritiesto stem the inflows. Theydid reverse in 2008, as China’s stockmarket bubble burst. Engineering amarket collapse is hardly a solution,but recent market jitters over potentialpolicy tightening by China’s centralbank could scare some speculatorsoff.One suggested approach, a substantialone-off revaluation of thecurrency by 10% or more, might coolcurrency speculation for a while, andslow inflows. Or it might just rewardthe speculators, encouraging them tokeep at it.Either way, the ardor of speculatorsto keep the money flowing inlooks set to foil Beijing’s determinationto keep it out.—Andrew PeapleObama administration faces a matter of principalIt’s a principle that won’t get putinto practice.As U.S. foreclosures remain high,support is growing for reducing theprincipal on mortgages that areworth more than the value of thehouse.The main government homeowner-reliefprogram focuses on trimminginterest payments, almost alwaysleaving the principal intact.The approach has had disappointingresults. That is partly because itdoesn’t rid the borrower of negativeequity—something bestachieved by cutting principal.But while the Obama administrationis likely unhappy about the lackof results so far, don’t expect it toback widespread principal reductions.First, if the administrationpushed for write-downs for a certainset of homeowners, it wouldrisk an outcry ahead of the Novembercongressional elections. Afterall, tax dollars would likely be usedto cover at least some of the lossescreated by reductions.Second, the government has limitedinfluence. TARP stakes gave leverage,but big banks have mostlypaid the money off. Meanwhile,roughly 40% of non-Fannie Mae andFreddie Mac mortgages are pack-Bloomberg News1999 2000 ’01 ’02aged into securities, whose ownerscould sue if mass write-downs wereattempted.Granted, the Treasury could demandprincipal cuts on loans guaranteedby Fannie and Freddie, whichit does control. But amending onlythose loans—leaving others far un-Strong pullChina's growth prospects are drawing investors through official, andunofficial channels.Forecast for 2010 GDP growth, change from previous year9.5%8.55.85.2China India Indonesia Korea Japan AsiaSources: HSBC; Associated Press (photo)derwater—could also backfire politically.Finally, the Treasury probablydoesn’t even believe in principal reductions.Offering them could drawin opportunistic borrowers whodon’t actually need them, causingmore losses and moral hazard than1.05.4Hitting homeSeriously past-due mortgages**90-plus days past due or in the foreclosure processSource: Mortgage Bankers Association’03 ’04 ’05 ’06 ’07 ’08 ’098%necessary.The government may calculatethat, even without write-downs,most people with negative equitywill keep paying to stay in theirhomes. With unemployment at 10%,that’s a big bet to make.—Peter Eavis6420Credit marketcan’t sustainthis blisteringpace for longFor credit markets, this is asgood as it gets.The new-issue market is flying,premiums over government bondsare contracting and risk appetite isrising.The market will have to slowdown: returns in the first few daysof 2010 already account for a significantshare of expected gains for thewhole year. Sovereign risk remainsa cloud over the market. But a combinationof abundant liquidity andbroadly improving economic datasuggest that for now, risk assets arein favor.Spreads and returns are the keyfactors behind the bond binge. Aftera bumper 2009, investors will needto take more market risk to sustainperformance in 2010.This is the next link in the chainthat started with policy makers reducingthe yield on cash to zero:With investment-grade yields nowoffering skinny returns, bond investorsare turning to riskier assets.In the U.S., the junk-bond markethas had the busiest start to the yearsince 2005, while in Europe borrowerssuch as Manchester United,HeidelbergCement and Virgin Mediaare lining up to tap investors.Risk appetite is also creatingsome odd anomalies. The MarkitiTraxx Europe index, a benchmarkfor the cost of insuring 125 bluechipWestern European companiesagainst default, is trading at a lowerlevel than the SovX Western Europeindex of 15 sovereigns. Longer-term,that kind of distortion looks untenableand is a reminder that debtladensovereigns are a potentialsource of problems; but in theshort-term, the government andcorporate credit markets are autonomousenough for the gap to persistor even widen.This enthusiasm for risk is drivingsharp gains. U.S. high-yieldbonds have already returned 2.2%year-to-date, according to Bank ofAmerica Merrill Lynch.In Europe, deeply subordinatedTier 1 bank bonds have returned 6%already, according to Société Générale.Investment-grade spreads onboth sides of the Atlantic have collapsedby 0.15 to 0.20 percentagepoint.The credit market can’t sustainthis blistering pace for too long. Butthat doesn’t necessarily mean it willgo into sharp reverse: Spreads canspend long periods at tight levels,as they did for most of the 1990sand the period from 2003 to 2007.The primary market will stay activeas bank lending is likely to remainconstrained.A smoothly functioning creditmarket should increase corporateconfidence and encourage investmentand spending. That bodes wellfor all risk assets—not just corporatebonds.—Richard BarleyPublished by Dow Jones Publishing Company (Asia). Printed in Hong Kong by Superflag Advertising and Communication Limited. 8 Chun Ying Street, NT. Printed in Indonesia by PT Gramedia Printing Group, Jalan Palmerah Selatan 22-28, Jakarta 10270. Printed in Japan by Yomiuri Shimbun, 1-7-1, Otemachi, Chiyoda-ku, Tokyo 100-8055. Printed in Korea by JoongAng Ilbo. 7, Soonwha-Dong, Chung-Ku, Seoul 100-130. 1997 June 04 Registration no.: SeoulKA00020 (Daily Newspaper), Publisher/Editor/Printer: Song, Pil-Ho. Printed in Malaysia by KHL Printing Co.Sdn. Bhd. (ROC No: 235060-A) Lot 10 & 12, Jalan Modal 23/2, Seksyen 23 Kawasan Miel Phase 8, 40000 Shah Alam, Selangor, Malaysia. Printed in Philippines by FEP Printing Corporation, 3817 Mascardo St., Corner Metropolitan Ave., Pasong Tamo, Makati City. Printed in Singapore by KHL Printing Co. Pte Ltd., 57 Loyang Drive, Singapore 508968. Printed and distributed in Taiwan by The China Post, 8 Fu Shun Street, Taipei 104. Printed in Thailand by Nation Multimedia Group Public Co., Ltd., 1854 Bangna-Trad Road, (K.M. 4.5), Prakanong, Bangkok10260. Published and printed on behalf of the Wall Street Journal India Publishing Pvt Ltd, 517B World Trade Centre, Barakhamba Lane, New Delhi 110001 by Mr Suman Dubey at A-8 Sector 7, Gautam Budh Nagar, Noida -201301 and PLOT No.EL208, TTC Industrial Area, Mahape, Navi Mumbai - 400710 (Maharashtra), India, Editor: Suman Dubey, phone: +91-11-6462 0215. ACP no. F.2 (T/3) Press / 2009 FACSIMILE EDITION.Australia: A$6.00(Incl GST), Brunei: B$5.00, China: RMB25.00, Hong Kong: HK$18.00, India: Rs25.00, Indonesia: Rp18,000(Incl PPN), Japan: Yen500(Incl JCT), Korea: Won2,500,Malaysia: RM6.00, Pakistan: Rs80.00, Philippines: Peso80.00, Singapore: S$4.00(Incl GST), Sri Lanka: Slrs180(Incl VAT), Taiwan: NT$60.00, Thailand: Baht50.00, Vietnam: US$2.50KKDN PPS 648/11/2010 (028507) KKDN PP 9315/10/2010 (025811) MICA (P) NO. 048/10/2009 SK. MENPEN R.I. NO: 01/SK/MENPEN/SCJJ/1998 TGL. 4 SEPT 1998Bloomberg NewsAs of 11 a.m. ET DJIA 10627.49 À 0.09% FTSE 100 5538.07 À 0.07% Nikkei 225 10798.32 Closed Shanghai Comp. 3212.75 À 0.52% Hang Seng 22411.52 À 0.51% SensexVO L . X X X I V N O . 9 5 (India facsimile VOL. 1 NO. 156)Chinese companies focuson green commercial real estateTHE PROPERTY REPORT 10Hong Kong milkshake murder trial reaches final appealNancy Kissel, convicted in 2005 of killing her investment-banker husband after sedating him with a lacedmilkshake, arrives at court Tuesday in Hong Kong to launch her final appeal of a life sentence. Page 6.By Mariko SanchantaAnd Yoshio TakahashiTOKYO—Government officialsare pushing Japan AirlinesCorp. to choose DeltaAir Lines Inc. as its new alliancepartner over AmericanAirlines parent AMR Corp., accordingto people familiarwith the matter, even as theembattled carrier movescloser to a likely bankruptcyprotectionfiling.JAL’s shares plunged 45%Tuesday as investors raced tooffload shares, wiping $900million off its market capitalizationin one day. Its new marketcapitalization of just over$1 billion compares with the$7 billion of rival All NipponAirways Co., a major comedownfor a national icon thatonce represented Japan’s linkto the rest of the world.Japan’s transport minister, Seiji Maehara, said JAL’s three majorcreditors agreed to cooperate to help restore it to fiscal health.JAL is expected to file forbankruptcy protection nextweek, a move made easierTuesday by the acquiescenceof its major lenders to governmentefforts to restructurethe airline. Seiji Maehara, Japan’stransport minister, saidASIABy James T. AreddySHANGHAI — Chinabacked off its giant stimuluseffort Tuesday by reducingthe amount of cash bankshave available to lend, in theclearest signal yet that thegovernment is worried thatthe nation’s credit binge nowrisks igniting inflation.China’s stimulus program,led by a government order tobanks in late 2008 to flood theeconomy with cash, helped tocarry China through global financialturmoil. The Chineseeconomy has reboundedstrongly, with property pricessizzling in major cities, a recoveryin exports and, recently,a rush of inward investment.The economy is nowpoised to surge past Japanthisyearas the world’ssecondlargesteconomy after the U.S.But deflecting inflationhas become a growing priorityfor Beijing. Tuesday’smove by the People’s Bank ofChina, the country’s centralbank, appeared to economistsas a significant, sooner-thanexpectedstep away from thepolicies that have encouragedeasy bank credit.Starting Monday, mostcommercial banks will be re-Tokyo favors Delta pact for JALBloomberg Newsthat JAL’s three major creditorbanks had agreed to cooperateto help restore the carrierto fiscal health, though hedidn’t disclose details. His remarksfollowed reports thatthe banks had agreed to theJapanese version of a U.S.Chapter 11 bankruptcy filing.On a positive note, JALTuesday won approval for itsproposal to reduce pension allowancesfrom 67% of about8,900 retirees, slightly abovethe two-thirds required forJAL to alter its corporate pensionprogram. The retireesfaced pressure to agree to thecuts to help the deeply unprofitableairline reduce its burdensomeobligations.JAL has been receiving officialadvice that a tie-upwith Delta would be more advantageous,according toPlease turn to page 18Strong-arbad businEDITORIAL & OPINIONChina pullon stimuluDeflecting inflation is a growinLending squeChinese central banreserve requiremen20% La151050’03 2005 ’07Source: The People’s Bankquired to put 16% oposits on reserve anthe money, an inchalf percentage pocent years, the requirement rate haas a primary tool fotral bank to fine-tutary policy.Also Tuesday, tbank raised the yieldits one-year bills, adesigned to siphonthe financial systeming the debt securititractive for banks tThe change p12< The Wall Street Journal Asia | Content Guide

On Other FrontsInteresting news stories to provide more understanding of the culture, livings and social development in Asia.10 THE WALL STREET JOURNAL. Thursday, Dec. 31, 2009 - Sunday, Jan. 3, 2010 Thursday, Dec. 31, 2009 - Sunday, Jan. 3, 2010 THE WALL STREET JOURNAL.By Mariko SanchantaTOKYO—Olivia Burrell, a32-year-old Canadian gospelsinger, was fed up with living inLilliputian studio apartments in Tokyowhere she could see (andsmell) her kitchen from her bed.Three months ago, she took theplunge and moved in with five Japanesewomen living in a six-bedroomapartment in Harajuku, a buzzyneighborhood in the city center.But, so far, her roommate experiencehasn’t quite been the Japaneseversion of “Friends” she hadenvisioned. Ms. Burrell walkedinto the kitchen one evening tofind no fewer than eight separatebottles of dishwashing liquid onthe kitchen counter, all neatlylined up and labeled with theirowners’ names.“My roommates are neat andvery courteous,” says Ms. Burrell,who has lived in Japan for sevenyears and who had lived withroommates in Canada. “But thiswhole concept is new here, andpeople don’t naturally want toshare things as much.”Japan has no real tradition ofroommates: People have preferredto live in their own tiny places.Now, fed up with a dearth of reasonablypriced apartments in desirableTokyo neighborhoods, a rising numberof relatively affluent women intheir 20s and 30s have started tocreate demand for a radical newsegment of the Japanese real-estatemarket: apartments to share.The timing of the trend coincideswith a glut of upscale apartmentsin Tokyo, which haveflooded the market since the collapseof Lehman Brothers in 2008.Foreign bankers decamped, leavingbehind many three- and fourbedroomapartments, popular withexpatriates, which have been vacantfor months.Kumi Tahara, 27, and KanaArai, 32, stepped into the void,founding a real-estate agencynamed “Tokyo Girls’ Real Estate.”They persuaded some landlords tolet them slice up four-bedroomapartments into as many as 10smaller rooms, which they thenstarted renting out to young Japanesewomen. “After the Lehmanshock, a lot of gaijin [foreigners]By Loretta ChaoBEIJING—The first Chinese authorto sue Google Inc. for publishingbook extracts online withouther consent is open to an out-ofcourtsettlement but won’t takeback her demand for an apology, herlawyers said Wednesday.Mian Mian, the Shanghai-basedauthor whose books about love affairs,drug abuse and suicide oncewere banned in China, is suing Googlein China for a public apology and60,000 yuan ($8,800) for publishingparts of her novel “Acid Lover.”The lawsuit comes weeks after aParis court ordered the Internet giantto pay $430,000 to French publisherLa Martiniere and to removeonline extracts to its books, a rulingthat could set a legal precedent forfuture copyright-infringementleft, and there are some placesthat have been vacant for morethan half a year,” says Ms. Arai,who wears a pink sequined bow onher head and favors miniskirts andknee-high boots. “The landlordspay the redesign fees and we’reable to increase the rent.”One apartment in Roppongi, theexpat mecca in Tokyo, commanded450,000 yen a month ($5,000) beforeits previous tenants left. Ms.Tahara and Ms. Arai redesigned theplace, chopping it up into eightsmall rooms that are nine squaremeters each, which they rented for80,000 yen apiece. The net result:They increased rental income by190,000 yen a month, of which theyreceive a 10% cut.“The market is improving a littlebit, but it’s nowhere near as robustas it was before” Lehman’swoes says Keiko Matsumoto, amanager at Ken Real Estate InvestmentAdvisors Ltd., an agent thatcaters to expats and high networthJapanese. “I think the ideaof facilitating shared housing isvery smart in this environment.”In Tokyo, one of the world’scases in France and which dealt ablow to the company as it tries tobuild a global digital library of millionsof books.Google didn’t respond to requestsfor comment. In an earlierstatement, the Mountain View,Calif.,company defended its practices,saying it doesn’t publish full textsunless rights owners agree to a settlement,and for all other booksonly snippets would be published.In addition, rights owners whodon’t want their books to be includedat all can request to havethem removed.Battles over digital-publishingrights are new to China, where industryassociations say unlicensedbooks, software, music and filmsare cheaply purchased or downloadedfor free at the highest ratesin the world.ON OTHER FRONTSSaying ‘sayonara’ to the rabbit hutchJapanese women try living with roommates as big, vacant apartments make perfect space for people on a budgetKana Arai, left, and Kumi Tahara founded real-estate agency ‘Tokyo Girls’ Real Estate.’ By catering to working women in their30s, the firm aims to capitalize on a rare real-estate market niche in Japan—apartments to share.most densely populated cities, theconcept of having roommates orsharing quarters has never beenpopular. The majority of young Tokyoiteschoose to live in cramped, cluttered,studios known as usagi goyain Japanese, or “rabbit hutches.”It has been thought preferableto live in a shoebox than to sharea space with strangers. The lack ofroommate-friendly apartmentswas also driven by developers whobuilt up apartment complexes overthe decades that were oftenchopped up into tiny, single roomsto maximize rental income.Ms. Tahara, a former Japan Airlinescheck-in attendant, and Ms.Arai met at a real-estate agencyand took note of the numerous requestsfor roommates they receivedfrom young, female clients. Theysensed there was a business idea inall of the requests and started theircompany two years ago. Since theinception of Tokyo Girls’ Real Estate,they have placed more than100 women in 12 properties.Ms. Tahara says the company isprofitable. Theirs is the only agencyin Tokyo that caters exclusively toThe government has mademoves to crack down on Internet piracyin recent years, including theinvestigation and subsequent criminalprosecution earlier this year ofone of the biggest pirates of MicrosoftCorp.’s Windows operatingsystem in the country.Still, piracy is rampant—manyWeb sites here publish entire booksand, unlike Google, they don’t offerroyalties to authors.Mian Mian’s lawyer Sun Jingweitold reporters he met with Google’slawyers and was open to negotiatinga settlement with the company.But, while Google has already removed“Acid Lover” from its library,the author’s requirement ofan apology is nonnegotiable, hesaid.“It’s Mian Mian’s belief that sheshould not only sue Google, but alsoworking women in their 30s. Other“shared housing” businesses exist,but most handle old buildings inless desirable locations that caterto backpackers, foreigners on ashort stay or old people.Central to the success of Ms.Arai and Ms. Tahara’s business isthat they redecorate and redesigninteriors themselves, addingtouches such as claw-footed bathtubs,gold wallpaper, pink rhinestonesand disco balls. The uninspiringapartments end up as fantasyplaylands. “I used to live in ashared home in Tokyo, but it wasso old and falling apart—freezingin the winter, and sweltering inthe summer,” says Ms. Arai.“These represent the dreams ofthese women, transformed into reality.We put lights on mirrors, sowhen they put on makeup theyfeel like actresses.”But the newness of this roommateculture in Japan means thatmany young women aren’t preparedfor what it’s like to sharehousing. Ms. Arai and Ms. Tahara,who mediate disputes, say one ofthe biggest issues is hair cloggingbeat its arrogance,” Mr. Sun said.Google has been working withU.S. libraries and several Europeanpublishers to build its digital libraryby scanning millions of bookssince 2004. In China, at least 50 publisherscovering 30,000 books participatedin Google Books. Still, thecompany has faced opposition fromrights owners world-wide. In theU.S., the Authors Guild said it considersthe practice of publishingbook extracts without permissionup the shower drain.And men aren’t ever allowedinside the women’s shared homes.Ms. Tahara and Ms. Arai believethat the apartments should be arefuge for women. “If there wassome sort of problem, then wecouldn’t be responsible for it,”says Ms. Tahara. “And if a guyended up staying over a lot andused water and electricity, itwould create an unfair burden onthe others.”Ms. Arai and Ms. Tahara interviewall of the potential tenantsbefore they sign a lease.Demographic shifts in Japanhave created a breed of singlewomen who work late, are oftenout on the weekends and just wanta convenient place to crash. “Theaverage age for marriage in Japanis steadily increasing, and fewerfemales want to live at home withtheir parents,” says Takanori Nakamura,a senior research and developmentdirector at Hakuhodo Inc.,a Japanese advertising agency.“Meanwhile, salaries are decreasingand women want to maintaintheir lifestyles. Rent is the firstthing they cut.”Each apartment that Ms. Araiand Ms. Tahara redecorate is donewith a concept in mind. The themeof the Harajuku apartment, whereMs. Burrell lives, is “SaturdayNight Fever.”“The design here is very cute,”says Sachiko Saito, a 28-year-oldsystems engineer who moved intothe apartment last week. “Japanesepeople aren’t used to the idea ofsharing an apartment, but I don’tthink it’s very difficult. I specificallylooked for places on the Internetthat I could share with others.”Ms. Burrell, who speaks Japanese,says she was bummed out atfirst about the “no men” rule. “Iwas a little disappointed because Ihave a lot of male friends, but, ultimately,it makes sense. There are alot of good things about sharing.After living alone for so long here,I needed to be more conscious ofpeople. I’ll learn a lot.”WSJ.comOnline today See a video aboutshared living spaces in Tokyo atWSJ.com/PageOneChinese author is open to settlement with GoogleMany Web sites in Chinapublish entire books and,unlike Google, they don’toffer royalties to authors.Ko Sasaki for The Wall Street Journalto be infringement. The AuthorsGuild and the Association of AmericanPublishers sued Google but ultimatelyreached a settlement withthe company that is under court review.Mr. Sun said “Acid Lover” wasnever published by Google in its entirety,but because the companyprofits from its publishing of excerpts,Mr. Sun says, it is infringementto scan and use contents of thebook without prior permissionfrom the author.“Google scanned and uploadedthe books first and then turned toauthors for settlement,” he said.“This is not reasonable. You shouldsettle the issue first and then scanand upload the books, not committinginfringement first.”—Gao Sen contributedto this article.>13

.Weekend Journal AsiaDynamic stories on various topics including art, movies, music, sports, travel, food and wine. Weekend JournalAsia, a weekly pull-out section published every Friday, enables you to engage with content on events and activitiesthat help you make the most of your leisure time.TRAVELFood & DrinkFOOD & DRINKAFTER HOURS:ONGYANGhts may go out, but the nightlife goes onFashionstralias Mr. Costello recorded auntry, jazz, classical? Yes, yesrt songs with the Brodskyop with mezzo-sopranor and written a ballet. Histo country, with “Secret,e.” The Singapore show isival; for a complete festivalsunfestival.com. Other stopsremantle, Hobart andSydney shows are sold out.nade Concert Hall,e; Oct. 5, 7:30 p.m.to S$148..coms Theatre, Lower Esplanade,7:30 p.m.and A$108.master.com.aue Convention & Exhibitionerivale and Glenelg Streets,18, 8 p.m..50 and A$109.ek.com.au—A Circus Comes to Town:ank Engine, not the moston the imaginary island ofith the most star power. TheeL life STlessons R E ETof JOURNAL Thomas and AS I A.ning for 25 years, and the40s, and still the inner lives ofcination. Other Australia stopsbane, Adelaide and Perth.nse Arena, Swan Street;4 p.m.; Oct. 3 and 4,d 4 p.m.ena, Olympic Boulevard,Park; Oct. 9 and 10,d 4 p.m..90 to A$45.ek.com.aupore Indoor Stadium,Dec. 4 and 5, 4:30 p.m. anda.m.to S$68..com.sgg Kong Academy for1 Gloucester Rd., Wanchai;0 p.m.; Dec. 10, 4:30 p.m.12, 11 a.m. (Performances in1, 7 p.m.; Dec. 12, 2 p.m. and.)95 to HK$495.eting.come German company boasts aas under John Cranko in thea big international splash,lebrate that heritage. Thences in Beijing and twohou will be the Crankoerspensiger Zähmung” or, ast, “The Taming of thebased on Scarlatti). The lastorks by four choreographers.Centre for the PerformingJie, Xichen District;Oct. 13, 7:30 p.m.uan to 800 yuan.45om.cnheatre, Science and Culturalan Feng Jie, Suzhout. 16 and 18, 7:30 p.m.;uan to 1,280 yuan (Oct. 16n to 880 yuan (Oct. 18).899om.cnKristina Pérez for The Wall Street JournalFILM‘In’ is outMust-have trends are très passé; now everything is in styleScreengemsAbove, rosy-fingeredits mosaics of peasants revoltingBy John KrichBy Christina Binkley baht ($1.20) nerdsfor weren’t a basic cool pad thai, and, you for somedawn on the Taedongand huge chandeliers meant to lookare paying reason, the a potted lady’s plants coat had and to beRiver, with the Towerlike stars.he name translates simply asavid Wolfe has been the air-conditioning.longer than her skirt. Women whoof the Juche IdeaBut there’s also the unexpected,“Thai fry,” but no commonanalyzing style trends for Thipsamai 41 wanted to be fashionable boughtvisible just beyond thelike the Pyolmuri Teahouse, a Tconcoction so perfectlyDyears. But earlier this month, Thethe granddaddy fashions whether of padthey thaiwantedbridge; left, the red star Western-style cafe whose nameepitomizes the complexity ofMr. Wolfe, creative director ofestablishments, the to wear miniskirts founded inor 1966, not. itThoughrising the dioramatranslates roughly as “constellationThailand’s culinary palette.Doneger Group consultants, stood packs infashions a loyal mostly changed, Thai thecrowdprimacy of‘Nine’ room of the shines; Victorious ‘Crazy of Heart’ the stars.” isOpened flawless in 2005 withAnd where else in the world butup in a room full of retail executives nightly. trends A good didn’t: starting Until just point, a few yearsFatherland Liberationthe help of the nonprofit AdventistBangkok would one humble plate,and told them: “There are no more thoughago, its noodles self-respecting are cooked too teenagerWar Museum.Development and Relief Agency, theavailable from after-breakfast totrends. Everything is in style.” much inwould bulk, its have basic been rendition caughtisin theBy Joe Morgenstern cafe—equipped, of Guido/Federico, as it proudly the blocked Top, Daniel Day-Lewis, after-hours at right attalkingstreet stalls, wetEven as the fashion press gears heavy wrong chives denimand wash. its Part higherpricedat version of watching is a bit oldtoo movies strongwas seeingof the funpointsmaestro out, with whoGerman-madespends the whole with Kate Hudson, markets, seated, four-table is directormom-and-popsup for an orgy of trend-spottingife is not a cabaret in “Nine,” ovensfilm andtrying Italianto pasta-makingfigure out what his Guido Contini inas the well screen as trendy adaptation cafes and internationalJeff hotels, Bridges provide stars the flavors ofstarts Feb. 11, many observers noodle feel slingers Now, most compete old filmon fashions this lookF R I D A Y - S U N D A Y, O C T O B E R 2 - 4 , 2 0 0 9New York fashion week, which reddishthe shrimp funnyoil. old Several fashions. otherRob Marshall’s extravagant machines—offers next film will a tasty be. apple (At times pie, this of the musical ‘Nine’;Lscreen adaptation of the a surprisingly slouching, decent brooding cappuccino director looks as a washed-up ricecountry noodles, singershrimp, with egg, palmMr. Wolfe is right: We’ve reached atmospheric pretty block current near to the me, Old fromBroadway musical, despite many and a great like chance a chain-smoking to people-watch. Ichabod Maggie Gyllenhaal sugar, tamarind, ‘Crazy Heart.’ lime, tofu, chilies,the end of the trend as the guiding City’s Golden Katharine Mount Hepburn’s temple. swishy man-tailoredpants Rd., in Samranrat;1940’s “PhiladelphiaBob Fosse tonalities and tropes. It’s Egyptian a Crane.) telecommuncations“Nine” isn’t the equal ofgreen onion, chives, bean sprouts,stricture in fashion. The “musthave”currently being attached to5:30Story” p.m. to to 1:30 those a.m. skinny ski-lodge313 Mahachaicarnival, in keeping with the source provider Mr. Orascom Marshall’s brought “Chicago,” mobile but it’s abanana flowers, lotus leaf, cilantroPad thaiof its inspiration, the Federico Fellini technology fine showcase to North Korea for the lastwomen year, in its her swinging and on apeanut, trapeze. with Judi vinegar, fishcertain styles—The trench coat! The% 66-2-221-6280capris in 1963’s “The Pink Panther.”film “8 1/2.” And as befits that overblown,self-indulgent, pseudopsy-girls of are stars accessorizing who deliver atheirvariety of designer and confidante, more sugarcomes added? on And all for aboutlittle more than a marketing pitch. Raymond, owner of the Los Angelesand now cast, demurely an extraordinary dressed teenage assemblage Dench, as Lilli, sauce, Guido’s sometimes costume ketchup and often THE DISH:one-shoulder dress! Metallics!—isWeb: www.thipsamai.com“Trends are diluted,” says Dorischoanalytic and still fascinating hanboks, high-quality or traditional goodsKoreanin musical stage with aone Marlene dollar? DietrichThe trench coat has been “in” Ratchawat for vintage Market store The Way We Wore.source, the carnival is loud, brash, dresses, numbers with platform of variable shoes quality. and demeanor and a Ubiquitous red featheryet boa. infinitely variedthe past five years, and will be hot There That’s are abecause number designers of pad thaihave inbrassy, sexy and sometimes tackycolorful, or decorative, The first shot straps of Penelope on their Cruz, Her number is and drop-dead alwaysstunning,filling on the fly, padnext year, too. Indeed, it’s a safestalls bet the surrounding past two decades Talad “referencedsilly, but always entertaining. cellphones. who plays (WeCarla, tourists Guido’shadmistress, as well as an adthai hoc seminar is to Bangkok in sheer what a street-cartthat next month we’ll see every Ratchawat, everya traditional possible fashion marketperiod on forDaniel Day-Lewis, as the Fellini surrendered finds her oursliding phonesdown at the a fuchsia showmanship. hot Nicole dog is Kidman, to New York. as Who wouldpossible length of skirt, widththe ofedge inspiration.” of one of the city’s oldestsurrogate Guido Contini, does airport, fabric along slide; withfrom our there passports; it gets even Claudia, Guido’s choose muse, the gets latter to sing over the former?pant and cut of blouse walk klongs the (canals). The style But consensus choose carefully.the Freshness splintering is all; forinnearly addition a decade to ashas beencharmingly eccentric variations they were better returned as Ms. just Cruz before gives weherselfthe only first-rate song, “Unusualrunways—sometimes all inon the theme of Marcello boarded bravely, the return and flight.) lustily, to a hoochiekoochieeveningdance approaches, routinetake that even a has The film’s most Someremarkableconjecture that Cotillard Vietnam-as Luisa, Guido’s long-suf-me it’s Steve Kloves’s heartbreak-Rather than fuss about skirt soggy, casual move on), andone fields indicator like tech is haveWay,” and she does THE HISTORY it gentle justice. performance is given by Marion and who can argue with that? Forsame show.the obvious workplaces signals have (if itgrown looks moreMastroianni doing his own version Asstroll (minder in tow) along theese traders brought theirfering light treatmentof noodles to Ayutthaya, “My Husband the Makes Movies,” has Boys,” in which he plays a self-loath-people now dress the way theythe seebetter.codes. Meanwhile, youngwife. Her musical number, ingly beautiful “The Fabulous Bakerlengths or the season’s silhouette, the sizepursued of the batch—the their ownsmaller,tribal dressdeserted embankment of theTaedong River to Kim Il Sungnation’s capital from 1350 more torange 1767. than any of the others, ing pianist on the downswing. Badthemselves, choosing looks that Ratchawat celebrities Market, have championed between a mixand-matchRoadaesthetic. and“The Soi industrySquare. From this vantage point,But it’s certain that Bangkok, from coiled thecalm to unchained Bangkok’s ferocity.relocated And Ms. Cotillard’s gift for certainly deplores what his life hasstyles. Most of us dress with Ruampradit,near our is fragmenting, SamsenCanal,Dusitreflecting consum-Blake may ubiquitous, not loathe himself, but hecustomizable flatter their fry-up bodies and fit their Nakhonchaisri life-you can photograph some picturepostcardviews while it’s still light. ESTATES after Ayutthaya fell to the mystery—the Burmese, art of doing much come to, and he’s running on emptysocial groups or professions, rather ers’ desire to create their ownport where the capital wasDISTINCTIVEPROPERTIES&An ideal place to watch the sunset iswas home to a flourishing while communityof Chinese traders—and serveswherebrilliantly alreadyinembarked the movie’s on the Suburban project of fromtaste one better crummy when gig served to on plastic But theto basics flashmust messages not be about ignored. who we are. The of home-style consumer restaurant discretionary of the retailseeming toguide do almost Bob Halliday, nothing— local aschefs drives had his battered Somehow, 1978the Chevy dish also seems to expensive thanadd-ons fashion like trends, crabmeat. using clothes Studio 9style,” says Marie Driscoll, directorfrom the Tower of the Juche Idea,named for theUNITED country’s STATES officialthere are Chinese, there are best noodles. scene, which turning couples their humiliationnoodleswith insight. something I haven’t distinctly between Southeast Bad Blake sightand of Jack flaming Baker. woks, under the maintained business between maythe donheat Gapof chinos the and near a the equity Wang research. Lang pier directlybowl of another. pasta into Yet there’s plates and a difference metallic tables in clear A balance A chief must executive be properly in the tech Patravadi coverage arts complex, for Standard situated & Poor’sideology, a word typically translatedHowever, the Thai-styleas “self-reliance.” The 170-meterdid not become properlymentioned celebrated until Asian—mainly now the most throughBad the was liberal once astars star—“I or used lazy to ceiling be fans. And, chilies, blazer the saltiness for work, ofwhile the dried investmentbankingthe chiefs sourness remain ofloyal theto theirGrand Forever Palace, 21 have is known contributed for itsto “fastacross theRetailers Chao Phraya such river as Zara, from H&M andtower, built on the occasion of Kim Ilor win its current, proud remarkable monikerpresence use ofin tamarind, “Nine,” that which, somebody,” according heunlike sings, much “nowAsian I amfood, pad thai is shrimp,Sung’s 70th birthday, is said tountil Field Marshal Pibul ofSonggramSophia Lorento as Mr. Guido’s Hallliday, latecan butstillsomebody be seen in aelse”—and rarely matched Mr. Bridges with beer. The Thais tamarind Zegna andsuits. the sweetness Others dress of the according paprikafashion,” chicken—agobbling specialty oftheir waycontain one white stone block forruled the nation from 1938-44 ever-present and mother. few stubbornly It’s always old-fashioned a fills opera-Ms. Loren, that continue but see-to cook humor, the dish dangerous tangerine anger, or an coconut urgent juice or cold all sounds, tribes: it’s amazing If you don’t how often dressitsteam-also serves New anYork, especially H&Mpleasingsale rackshis emptiness prefer to with wash quirky it all down with palm sugar. to the Given mores howof difficult their own that personal complex’s through actress looks. founder—butEarlier this month inThe Egypt Palaceeach day of his life to that point. (He1948-57. 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Much waistcoat like with Bangkok, that and were experimental shown on the dance runways incard games includingFrom the top there’s a panoramicview over the capital out tonationalism. Promoting rice unless accompanied, often with the on West’s a wide-open “Not too wet, spaces. not too dry” fairly or reheat. There was a time when luxury69/1 own Soiclothes Wat Rakang arrive inArunstores inname “pad thai” as a statement glory daysofof Italian A pad cinema. thai simply isn’t one. a pad It’sthaia performance THE JUDGMENT on a scalereal pizza, goggles pad thai andjust a pocket doesn’t watch). keep shows at September. dinner. When those designers’blackjack, is generallyopen until 4 a.m.the surrounding mountains. Thenoodles and noodle shops ‘Crazy was part Heart’ separate plate, by a raw quarter T Bone of Burnett a summarizes and the late theTexascriteria for judging retailers Stanley Marcus Amarin and March, Rd., Siriraj; H&M customers Sunday may to welllack of cars on the roads—vehiclesof a drive to diversify a struggling “Crazy Heart” banana is blessed flower, with so uncooked songwriter bean Stephen pad thai, Bruton according wrote to most Thais as THE SOURCES Andrew Goodman, of Neiman Thursday, view11 a.m. the to originals 11 p.m.; to with midnightFriday Runway andlooks Saturday. are now accessible todéjà vu.aren’t freely available for purchase— economy. Little did this tyrant many know marvelous sprouts moments, and lovely lotus leaf, Bad’sgroundsongs; well theyas provide Mr. Halliday. the Excess gloppy Nearly Marcus everywhere and Bergdorf in BangkokGoodman,isand scarcity of heavy industry what a gift he was giving lines to andthevividpeanuts characters andthat freshit’slimemovie’s to squeeze rock-solid sauce foundation. is decidedly When out. The dish can a good determined a place to start whatlooking women would for buy% 66-2-866-2144everyone—but their cachetmeans the air is remarkably clear. future legions of Thai-food hard fans to know in where overit toall.Atray begin, butof let’s the usual theThai script condiments(chilies in a tacky in vinegar, particularly sugar, wonderful chen noodles—more song, ourcomplex and al ors stay open until 2 a.m., as thesays that be fancied Bad hasup written on request a with san-pad thai each nirvana—and season. That manywas purvey-back whenWeb: disappears www.patravaditheatre.coma lot faster.Then it’s time to think about America, Europe and Australia. start with an encounterwhere to have dinner. Don’t dawdle;However, according to Santa long-time Fe motel room. fish sauce, Bad Blake, etc.) ahelps ruinedexpert legend ofcustomize a countrytheir musician noodles even in question, further. “The omelet, Weary or Kind,” supplemented was with replenisher. If you pay more than 40based in Bangkok.local ears confirm eaters the dente—covered judgment. (The with one a thin lid of dish is a popular after-drinkingJohn Krich is a writermost Pyongyang eateries generallyBangkok food writer and played by Jeff Bridges, is being interviewedby Maggie Gyllenhaal’s Jean, Bingham.) And music isn’t just thethe work of Mr. Burnett and Ryan asingle mother who writes about musicfor a local newspaper. When she text. One deliciously instructivepretext for drama, it’s part of theWEEKEND JOURNAL | Friday - Sunday, January 29 - 31, 2010 W15 asks what he wants to talk about, he sequence pits Bad, in all his seedy looks into her radiant face and shrewdness, against an equallyreplies, in a booze-fraught baritone, shrewd veteran sound man whose allegianceis to the concert’s younger“I want to talk about how bad youmake this room look.”star, Tommy Sweet, not to Bad,Well, I want to talk about how bad who’s merely opening the show.this debut feature makes most of the Tommy is played by Colinpast movie year look. It was written Farrell. The relationship betweenand directed by Scott Cooper (he the two men is an interesting one—adapted the script from a novel by Bad taught Tommy everything heThomas Cobb) with an unerring knows—and Mr. Farrell’s performanceis an interesting reflection ofinstinct for intimacy and a flawlessTo advertisesense of proportion, whether in the generational contrasts. Rather thanBrian TongMAKE GREATbig moments or the small ones. It’s a play Tommy for charm, Mr. FarrellSales Directorconventional film—that newspaper gives him an almost sullen coolnessClassified Advertisinginterview is only one of several wellwornplot devices—but one that ness all the more affecting. There’sthat makes Bad’s raunchy bearish-CONNECTIONSThe Wall Street Journal AsiaHong Kong: 852 2831 2552wears its conventions gracefully. It’s nothing cool, though, about Ms.IN ASIA.Fax: 852 2574 2618a film that recalls such classics of the Gyllenhaal’s performance—it’s theSingapore: 65 6415 4279genre as “Tender Mercies” (though finest, fullest work of her career.THE WALL STREETFax: 65 6225 5039it’s less subdued); “Payday” (though Jean and Bad aren’t a natural match,brian.tong@dowjones.comit’s more sweet-spirited) and “Songwriter”(though it’s more sincere), ence in age. Someone else might seeand not only because of the differ-JOURNAL ASIA.but one that takes a place of honor him as a sinkhole surrounded by Dayamongthem.Glo danger signs (if he weren’tAnd it revels in the glory of Mr. played by Jeff Bridges, that is), butBridges. Everyone has a favorite Jean is so open and tender—and soJeff Bridges movie. For many it’s the touchingly needy—that all of herCoen brothers’ “The Big Lebowski,” decisions make fateful sense.W18 Friday - Sunday, January 29 - 31, 2010 | THE WALL STREET JOURNAL ASIA.A matterof expressionInside: The CollectorFox Searchlight Pictures (‘Crazy Heart’); The Weinstein Company (‘Nine’)CorbisFASHIONI welcome democratic fashion asone of the many benefits of beingalive in 2010. But it can be a headachefor the fashion industry, whichonce could depend on trends to lurecustomers and still maintain a trendspottinginfrastructure to figure outwho will buy what. Predictingtrends is “more challenging everyyear,” says Sharon Graubard, atrend analyst with fashion consultancyStylesight. “With fewer ‘musthave’items, retailers and designershave to try harder,” she says.Some new retailers are lettingcustomers dictate the details. “Fashionhas traditionally been this topdownindustry, but we saw that technology”could allow consumers tochoose their own details, says AbbyHoltz, director of marketing forindiCustom, a San Franciscoretailer of custom jeans and shirtsthat launched in 2008. ItsindiDenim brand lets shoppers pickfabric, leg shape, pockets and otherdetails for customized jeans.But there’s one fashion segmentwhere trend is increasinglydominant: menswear, where pleatsare “out” and trim, flat-front pantsare “in,” says Andy Gilchrist, authorof “The Encyclopedia of Men’sClothes” and founder of the “AskAndy” Web site. “It seems,” he says,“that the designers and retailersare trying to get men into that ‘old’women’s fashion-trend cycle.”Photo Illustration by WSJ; Reuters (photo); Timeline: Photofest (’60s); MCV Photo (’90s); Everett Collection (6)The evolution of ‘in’Fashion was long driven by dominant looks. But recently, designershave been offering a variety of hemlines and silhouettes.'10s '20s '40s '60s?'70s '80s '90s '00sWEEKEND JOURNAL | Friday - Sunday, January 29 - 31, 2010 W314< The Wall Street Journal Asia | Content Guide

For one of golf’s most famousbuildings, Hamilton Hall in St.Andrews, Scotland, is lookingpretty shabby these days.Its red sandstone facade is stillimpressive, especially when lit bythe late-day sun. The building loomsover the 18th green of the celebratedOld Course and, more pointedly,over the clubhouse of the Royal andAncient Golf Club across the street.(Thomas Hamilton, who had Jewishroots, commissioned the grandstructure in the 1890s, as a hotel, afterbeing rejected for membershipby the club.) But peek around backand you’ll find broken windows,boarded-up doors and blight. Insideare rooms whose ornate ceilings andinvaluable views of the world’s mostfamous links are balanced by danglingwires and rubble mountingpast the wainscots.In 2004, with great expectations,Rhode Island developer DavidWasserman purchased HamiltonHall for $32.7 million from theUniversity of St. Andrews, which hadbeen using it for student housingsince 1949. His St. Andrews Grandwas to have been asuper-deluxe timeshare;Phil Mickelson, among others,committed millions of dollars for ashare in one of the 23 proposed apartments.But not enough buyers cameforward to make a go of the project,and then the recession hit. Thisspring the troubled Bank of Scotland,which had lent Mr. Wasserman millionsof British pounds, repossessedthe building and put it up for auction.The bidding closed Aug. 14.One bid, of $16.5 million, camefrom a group of Glasgow investorswith ties to an Englishman namedRichard Wax, a golf-industryconsultant who now lives in Paris.He worked on many of designerRobert Trent Jones II’s Europeanprojects and more recently played arole in getting the acclaimed Kingsbarnscourse built near St. Andrews.Mr. Wax started trying to pry HamiltonHall away from the University ofSt. Andrews in the mid-1990s. Hisvision calls not for apartments butfor a “golf-industry nerve center”and a “clubhouse for the world.”“It is an incredibly powerful building,”Mr. Wax said in a telephoneinterview. “Every time golfers on theOld Course photograph themselvesstanding on the Swilcan Bridge,Hamilton Hall is in the background.It’s the most recognizable buildingin St. Andrews, the home of golf. Soin our view it should be used somehowto send a signal to the worldabout the spirit and accessibility ofthe game, not as trophy apartmentsfor the super-rich who probablywon’t spend more than a week ortwo a year in St. Andrews at best.”The Royal and Ancient clubhousenext door, he pointed out, ishung with signs that say “MembersOnly,” and despite the notably egalitariantradition of golf in Scotland,those members can only be male. “Isthis the message that golf and St.Andrews want the world to see?”Mr. Wax asked.The specifics of how Mr. Wax andhis group would deploy the sixstory,45,000-square-foot buildingwhile achieving a positive return oninvestment is unclear, especiallysince estimates for the additionalcosts of refurbishment range to $41million and higher. The presence ofthe British Golf Museum nearbyrules out using the space for permanenthistorical exhibits, but Mr. Waxmentioned staging golf lectures,public appearances and cinema asone possibility. The building couldhouse a visitors center, golf-relatedretail and headquarters for internationalgolf organizations andconsulting businesses. Given HamiltonHall’s iconic stature, Mr. Waxsaid, its highest value might be as a“virtual base” from which to offergolf services online.There might even be a few floorsof hotel rooms, with amateurscompeting in tournaments on theOld Course receiving special accessthe way amateurs playing in theMasters are allowed to stay in the“Crow’s Nest”—a room atop theclubhouse—at Augusta National.In the course of what he estimatesas more than 100 visits to St.Andrews over the past 15 years, Mr.Wax has acquired many fans. “Richardis a lovely man, passionateabout golf, and his vision is lovely,too,” said Kevin Keenan, generalmanager of the Macdonald RusacksHotel, which stretches along theOld Course’s 18th fairway.Understandably, most townspeoplewould prefer a use for HamiltonHall that generates more street lifeand buzz than elite apartmentswould, especially during the drearywinter months, but anything wouldbe better than the status quo.“What we don’t want,” said TedBrocklebank, the member of ScottishParliament whose districtencompasses St. Andrews, “is whatwe’ve seen the last five years, whichis an American real-estate speculatorsitting on the building becausehe lacks the sums required to makehis dreams come true.”Unfortunately for Mr. Wax’s bid,this summer’s auction attracted thestated interest of several of theworld’s most fanatical golf billionaires—menwho certainly do havethe sums required to make theirdreams come true. They includeDermot Desmond and J.P. McManusof Ireland, who are partners in theSandy Lane golf resort in Barbados,where Tiger Woods was married,and have other sporting interests;Donald Trump, who’s put his nameon a stable of high-profile coursesin the U.S. and who is controversiallyattempting to push through a$1.64 billion golf-and-real-estateproject in northern Scotland; andAmerican faucet magnate HerbKohler, who owns Whistling Straitsin Wisconsin, the site of next year’sPGA Championship.Since bids are sealed, it’s impossibleto know who in the endfollowed through with offers, butnine credible bids were received bythe deadline, according to JasonHogg of Jones Lang LaSalle, theagent running the auction for Bankof Scotland, and the top bidder,whose name he said he could notreveal, has now signed a legallybinding contract. “He has until mid-November to complete his duediligence,” Mr. Hogg said.Everyone I spoke to believes thewinning bid, perhaps on the order of$23 million to $25 million, wasmade by Mr. Kohler. He alreadyowns the Old Course Hotel and theDuke’s golf course in St. Andrews,and was seen earlier this monthinspecting the property with agroup of advisers during the AlfredDunhill Links Championship at theOld Course. A spokesman said theKohler team had no information toshare about the project at this time.Mr. Wax, not surprisingly, isgalled. “For Mr. Kohler to come inhere with his money and make offwith that building would be atragedy for golf, and I don’t use theword lightly,” he said. But as Mr.Brocklebank, the Scottish MP,pointed out, it’s unclear what Mr.Kohler’s intentions are—if indeedhe is the winning bidder.“Mr. Kohler has a good reputationin this town and has poured alot of money into the Old CourseHotel,” he said. “Hamilton Hall is atall building. It’s conceivable thatsome aspects of Mr. Wax’s visioncould be combined.” If not, headded, there are other buildingsnearby that might work for Mr.Wax nearly as well.Golf JournalJOHN PAUL NEWPORTRooms with a viewBidders compete to put their stamp on a storied golf structureHamilton Hall, right, has a primelocation overlooking the 18th greenat the Old Course in St. Andrews.Alamyv Sports WEEKEND JOURNAL | FRIDAY - SUNDAY, OCTOBER 23 - 25, 2009 W7Entrance HallCourtyardCourtyardCentral HallWooden screenMain HallMain Hall: More than100 ancestral tabletssit in the inner chamberof the Tang hall.formal designTang Ancestral Hall in Hong Kong follows ancient guidelinesrding size and layout that corresponded to one’s social status.Central Hall: A redwooden screen keepsevil spirits fromentering the main hall.Entrance: There is nothreshold to step overat the front doorwayof the hall, a signal tofamily members thatthey can enterwithout pausing.By Jonathan ChengShenzhen, ChinaWe’re terribly sorry toreport this, but there aresome people on Earth whodon’t have the highest regard forgolf. They say it’s an elitist pastimefor fancy people and garden-partyintellectuals—more of a leisurepursuit than the sort of activity thatcultivates one’s muscles.In China, where the game hardlyexisted a quarter of a century ago,that stereotype has persisted. Itwas the nation’s wealthiest classesthat first adopted the game, buildingexclusive private courses likeShenzhen’s sprawling Mission HillsGolf Club, which has 12 courses of 18holes each, making it the world’slargest golf complex.The popular ranks of the nation’sathletes, however, the ones who areambitious about leveraging theirtalent, don’t pay the sport muchattention. The government, whichcontrols the sports scene with itslavish spending on developmentprograms, has anointed tennis,soccer, basketball and table tennisas the mandatory school sports. Inthe past four years alone, about800,000 basketball courts havebeen built in China, pushing theestimated number of players to asmany as 400 million.But what the promise of aMasters Tournament green jacketcan’t accomplish, the lure of a goldmedal just might.Since the International OlympicCommittee announced in Octoberthat golf will be a medal sportstarting in 2016, China’s golf leadershave been bursting with optimism.They have started pushing Beijing tobuild public driving ranges andcourses in hopes of incubating talent.Last month, Mission Hillswrapped up its first-ever AsianAmateur Championship tournament,held in conjunction withAugusta National Golf Club andScotland’s Royal and Ancient GolfClub of St. Andrews. Thanks tothose relationships, the tournament’swinner got an automaticinvitation to next year’s Masters.Mission Hills also announcedplans to launch its own Chinesejunior tour in January, withbiweekly 18-hole tournaments andan annual membership fee of 500yuan, or about $73.“These steppingstones arecrucial to our mission of nurturingthe next Tiger Woods,” says TennielChu, executive director of MissionHills. After the Olympics announcement,Mr. Chu said, “golf is nolonger an elitist sport—it’s anofficial sport in the Chinese world.”Before the IOC’s announcement,one of the most ambitious thingsthe China Golf Association had saidwas that the country could have 20million recreational golfers by2020; the U.S. has about 26 million.But since the Olympic vote, thesport’s backers in China seem tohave raised their sights a bit. At theannouncement of the Chinesejunior tour, Xu Deli, chairman of theprovincial-level Guangdong GolfAssociation, said, “We want toproduce not just one Tiger Woods,but many Tiger Woods. In 2016, Ihope that some of these golfers willbe part of that competition.”For golf to prosper here, it willneed more public facilities and astronger amateur circuit tocultivate young talent. Mr. Chu saysChina still has fewer than 100amateur tournaments a year,compared with 600-plus each yearin the U.S. China also will need moreand better golf instruction (MissionHills has three golf academies) and,eventually, some domestic stars.“All we need is a local hero—a YaoMing of golf would be tremendousfor the sport,” Mr. Chu says.One of the great hopes so far inChinese golf is a 21-year-old namedHan Ren, who shot a few holes withMr. Woods when the U.S. star visitedin 2001. That event “was really oneof the moments that motivated me”Mr. Han says now. “I’ve never playeda round with more than five spectators,but when I was with Tiger itwas 5,000 people, and I was kind ofnervous. But I knew I also wanted tobe on that stage.”Still, without an ecosystem tothrive in back home, Mr. Han wassent overseas to take his game tothe next level—first to Canada in2003 and then to Indiana Universityin the U.S., where he is a junior.“The sport is not yet thatpopular in China, although I can seeit growing so much bigger in thenext decade,” Mr. Han says. “I don’tattract a huge crowd when I playevery time, but I feel a huge difference;there’s so much more supportfrom spectators in Asia compared tothree or four years ago.”Mr. Han plans to go pro aftercollege, hopefully in the U.S., thoughhe also says he plans to spend sometime in Asia to “launch my career.”Mr. Han returned to Shenzhenfor the Asian amateur tournament.After shooting a 65, hetook a quick lead ahead of hisSouth Korean and Australianrivals, only to cede his positionon day two. In the end, the topChinese finisher placed 11th, withcompetitors from Australia, NewZealand and golf-crazy South Koreain the top six spots.If Chinese golf officials havereason to believe they can dominategolf in coming years, their bestargument may be the trajectory oftennis. That sport, which alsosuffered from an elitist image,benefited from an infusion of governmentfunding after being reinstatedas an Olympic medal sport in 1988.The global men’s and women’stours quickly moved to signtelevision deals and line up internationaltournaments in big citiessuch as Shanghai. China lastyear won a bronze medalin women’s doubles atthe Beijing Games, andnow counts threetop-50 players on theglobal women’s tour.Dan Washburn, aShanghai-basedwriter who is researchinga book on golf inChina, says that if thereare medals to be had ingolf, China will try itshardest to produce medalists.“They’ll train themfrom a young age, and they’llbe state-funded, like otherOlympic sports,” he says.Given China’s track record atthe Beijing Games, where it won51 gold medals, the most of anynation, it might be a bad idea tobet against it on the golf course.Already, the infrastructure forthe game is growing at a furiouspace. Mr. Chu at Mission Hills likes topoint out that the world’s next-largestgolf complex, North Carolina’sPinehurst Resort, celebrated its centennialby opening its eighth course.Mission Hills opened its 12th golfcourse in 2004, just a dozen yearsafter breaking ground on the first.When it started, Mr. Chu says, therewere fewer than six golf courses and50,000 golfers in the country.In its early days, Mission Hillswon official approval more for itseconomic benefits than for anyathletic reasons—local bureaucratsliked that the golf course broughtjobs and businesses to the area,while raising property values. TheChus cultivated ties with localsporting officials as well as golf’sluminaries in Scotland and the U.S.In 1995, Mission Hills hostedChina’s first-ever televised golftournament. In 2001, it brought Mr.Woods to Shenzhen. And in 2007, Mr.Chu struck a 12-year deal to host theWorld Cup of Golf, an annual tournamentfor pairs of players representing28 countries around the globe.This year’s, won by Italy, took placelast weekend. (China tied for 22nd.)Whatever becomes of China’syoung aspirants like Mr. Han, golf’smainstream popularity in thecountry is still many years away.Land is expensive, and officialconcerns about the growing wealthgap in a country that still has 600million farmers have led thegovernment to impose a nominalmoratorium on new golf courses.“Golf will continue to grow inparticipation in China as theeconomy grows, but I don’t thinkit’ll become a mainstream gamebecause of the resourcesnecessary,” says Mr. Washburn, thewriter. “It’s going to be an elitist andprohibitively expensive sport inChina for the foreseeable future.”Driving Chinese golfThe sport’s Olympic status is expected to mean more official supportAssociated Press (Mission Hills); Getty Images (Han)SPORTSThe 12-course Mission HillsGolf Club is taking a lead rolein trying to turn China into aglobal power, including byhosting the annual WorldCup tournament, seen here.One of Chinese golf’sgreat hopes is Han Ren,a 21-year-old player whohas been honing his gamein Canada and the U.S.since 2003.W4 Friday - Sunday, December 4 - 6, 2009 | THE WALL STREET JOURNAL ASIA. WEEKEND JOURNAL | Friday - Sunday, December 4 - 6, 2009 W13By Rosanne BarrettStanding in Brisbane’s bustling centralbusiness district, you’re just 36 kilometersas the crow flies from a spot wherethe deep calm of nature prevails: NorthStradbroke Island, in Moreton Bay.Called “Straddie” by locals, the island isone of the most beautiful and rugged placesoff Australia’s east coast, or indeedanywhere in the country—a haunt forsurfers, nature lovers and anyone justseeking a place to relax. (Kilometers ofwhite sand beaches line the island’snortheastern side.) But while life is nothectic on Straddie, the easy charm concealshidden depths and a grim history.If you aren’t a crow, thetrip to Straddie starts in theeastern outer suburb ofCleveland. From the center ofBrisbane, Cleveland is 20minutes away by car or anhour by train (it’s the end ofthe Cleveland line; the fare is alittle over US$6). Take the freebus from the train station tothe ferry station; from thereyou can hire a car if you wantto drive around the island.In Cleveland you can also grab a watertaxi; the trip to Stradbroke Island takesabout 25 minutes (round trip, about $16). Ifyou want to take a car to the island, or you’reafter the cheapest option, the vehicularferry, which takes about 45 minutes, costsabout $124 for a car and all its passengers, or$10.25 for those on foot. (StradbrokeFerries, % 61-7-3488- 5300; www.stradbrokeferries.com.auor Sea Stradbroke,% 61-7-3488-9777; www.seastradbroke.com)Paved roads link all the townships on theisland; four-wheel-drive vehicles are alsoallowed on the beach and some inlandtracks, with a special permit that costsabout $42.50 and is available from the ferryterminal or on the vehicular ferry.Stradbroke Island is large in size but simpleto navigate. There are three main townships:Dunwich, where you will arrive, Amity andPoint Lookout. Most people drivethemselves but there are also taxis available.The ferries aren’t luxurious but it is a verypleasant journey. Except during holidaysthey are mostly filled with high-school students(to complete secondary school theymust travel to the mainland daily) and islanderson shopping trips (they can be identifiedon the island-bound trip by their departmentstorebags). The ferries are a relaxing way tochug through Moreton Bay and downshift tothe Straddie pace of life; there’s also moretime to look for dolphins, turtles or even therare dugong, a large sea mammal.By water taxi or ferry,you’ll land at the Dunwichpier on a causeway that is oneof the few remainingstructures of Australia’sconvict era. Hand-built byprisoners to provide accessfor cargo shipping, thecauseway is a reminder of thebrutal European colonizationof the country’s east coast.Close by the Dunwich ferrystop is the North Stradbroke Historical Museumand Dunwich Cemetery, which offermore reminders of the harsh life enduredby the poor during the first century andmore of Australia’s colonial history.Straddie’s European settlement startedwhen the British offloaded convicts atDunwich in 1827—the causeway was builtthat same year—and conditions didn’t reallyget much better until the 1940s. Because ofits isolation, Straddie was used to quarantinepeople afflicted with leprosy, typhus andother infectious diseases. In 1867, theBenevolent Institution was opened on theisland to house Queensland state’s mentallyill and merely destitute; it closed in the 1960s.The Dunwich Cemetery was the lastresting place for 8,426 of the institution’sWSJ.comTRAVELRocks with a view atPoint Lookout; MainBeach, which stretchesfor 32 kilometers, is inthe background.One hour out:Brisbane( To see more photos, click on Asia.WSJ.com.Over the water, the serenityof ‘Straddie’Another in a series of articlesseeking to answer thequestion, When a travelerhas had about enough of thejingle-jangle of the urbanjungle, can relief be justan hour away?W6 Friday - Sunday, January 15 - 17, 2010 | THE WALL STREET JOURNAL ASIA.Paramount Pictures/Everett Collection (‘Shutter Island’); Universal Pictures/Everett Collection (‘Robin Hood’); CBS Films (‘Extraordinary Measure’); Apparition (‘The Runaways’)By Lauren A.E. Schuker‘Shutter Island” raised someeyebrows when ParamountPictures moved the releaseout of 2009 to February of this year.Wouldn’t Martin Scorsese’s firstnarrative feature since “TheDeparted,” and starring LeonardoDiCaprio, want to be out in time forAcademy Award nominations?The studio says it simply wastrying to defer spending themarketing money until fiscal 2010,and there’s no evidence that this filmwas troubled in any way: The subjectseems perfect for Mr. Scorsese. AU.S. marshal is assigned to investigatethe disappearance of a murderessfrom a mental institution for thecriminally insane on an island inBoston Harbor. Mr. DiCaprio, and apartner played by Mark Ruffalo,soon begin to question theirassignment—and each other—afterthe island is plagued by a series oftraumatic events, including amassive hurricane during whichinmates escape their cells.Mr. Scorsese agreed to direct“Shutter Island,” based on a novelby Dennis Lehane (“Mystic River,”“Gone, Baby, Gone”) about a weekafter receiving the script, saysproducer Brad Fischer of PhoenixPictures. “After we sent him thescript, his agent called and said itreminded [Scorsese] of this oldGerman film, ‘The Cabinet of Dr.Caligari,’ which was one of the firstmovies ever made about psychologicalterror.” And the terrain wasn’tentirely foreign to Mr. Scorsese: His“Cape Fear,” starring Robert DeNiro as a rapist who gets out ofprison to stalk the family of hisformer lawyer, is nothing if notpsychologically terrifying.To help set the tone, Mr.Scorsese held nighttime screeningsfor the cast and crew, from OrsonWelles’s 1962 “The Trial” toJacques Tourneur’s 1947 noir taleof double-crossing, “Out of thePast” and Frederick Wiseman’sonce-banned 1967 documentary“Titicut Follies” which followsinmates who were stripped,chained and force-fed at aMassachusetts mental asylum.This is the fourth collaborationbetween Mr. Scorsese and Mr.DiCaprio, following “Gangs of NewYork,” “The Aviator,” and “TheDeparted.” While the director isprobably the most-lauded of hisgeneration, his films had neverattained blockbuster status at thebox office until “The Departed,”which grossed nearly $300 millionat the world-wide box office.The RunawaysIn some quarters, KristenStewart is already Hollywood’sbiggest rock star. So who better toplay a real one, Joan Jett? Sportinga shag haircut, Ms. Stewart of “Twilight”fame plays a young rocker inthis coming-of-age biopic about the1970s band formed by teenage girlsliving near Hollywood, includingthe 16-year-old Ms. Jett (née JoanMarie Larkin). The film is looselybased on lead singer Cherie Currie’smemoir, “Neon Angel.” The girls in“The Runaways” were all youngerthan 17 when they broke into arough, male-dominated rock scene,just ahead of the Go-Go’s and theBangles. While the band never hitthe big time, Ms. Jett did, and theRunaways managed to play alongsidethe Ramones, Tom Petty andCheap Trick.Music films generally have amixed box-office track record, butthis one could be a magnet for “Twilight”fans with Ms. Stewart in alead role. Child-turned-adolescentstar Dakota Fanning, who plays Ms.Currie, even has a small part in themost recent “Twilight” sequel.“The Runaways” isn’t perfectlysuited for 8-year-old “twitards,”however: Some themes are dark,including the girls’ drug and alcoholuse. Ms. Stewart sings in the film;the real-life Ms. Jett served as anexecutive producer.Wall Street 2Gordon Gekko might have been agreed-ridden rogue in OliverStone’s original 1980s “WallStreet,” but he was a glamorousone. Mr. Stone’s coming “WallStreet 2: Money Never Sleeps,”presents a more chastened Gekko,struggling to adjust after years inprison. Michael Douglas is still aruthless corporate raider at heart,but the findrastically shgone global, anis on the brinkWill Gekko finPerhaps inperspective timmediate finMr. Stone focGekko’s persoearlier film. Wdetails of thesome of theexplore Mr. Grebuild a reldistant daughMulligan of “Ablameshimsuicide. He bStreet trader fby Shia LaBinvestigate finRobin HoodIn his fifthRidley ScottCrowe plays tredistributorremake of the tsal Pictures ch“Nottingham”Extraordinary storiesThe latest from Scorsese, Stone and Scott promise to enTHE YEARClockwise from top left: Ben Kingsley, left, and Leonard DiCand Harrison Ford in ‘Extraordinary Measure’; Russell Crow>15By Alexandra A. SenoVisitors strolling the groundsof Benedicto Cabrera’s homewill get a quick view of someof the Filipino painter’s passions:Plants, sculpture and otherremnants of the culture of thenorthern Luzon region pepper hisfour-hectare spread in Baguio.Some recent additions to the landscape,such as the bonsai in the gardenand carp in the pond, are giftsfrom admirers hoping to move upthe long waiting list of buyers for thework of BenCab, as the famouspainter is also known.The artist’s new compound,completed earlier this year, includesthree contemporary-style concreteand glass structures. There’s a hangar-likepainting studio—neat, yetfilled with books and small randomobjects. Across from it is the cottageMr. Cabrera, 67 years old, shareswith his partner, Annie Sarthou. Anda few steps away, his extensive collectionof contemporary Filipino artworksand tribal art sits displayed ina personal museum that is open tothe public. An inveterate collector,Mr. Cabrera says he no longer knowshow many pieces he owns.“With collecting you learn,” saysthe perpetually curious artist.Named a National Artist by thePhilippine government in 2006—thehighest recognition given to Filipinoswho have made significant contributionsto the development of Philippinearts—Mr. Cabrera owns hundredsof archive-worthy antique materialson the Philippines, includingmapsand books and old photographs.Some have inspired his paintings,which are prized for their draftsmanshipand reflections on Filipinoidentity. He also owns one of thelargest collections ofNorthern Philippinetribal objects as well ashundreds of Filipino works ofcontemporary photography, paintingand sculpture.“I love looking at them,” says Mr.Cabrera. “I find inspiration in them.”One of his most-treasured itemsis a small wooden model made byArturo Luz (born in 1926) as aprototype for an outdoor sculpturethat now stands in Manila. Mr.Cabrera first spied the miniature—amodern interpretation of a tribal godcalled an anito—in the early 1970s,when he visited the London home ofJaime Zóbel de Ayala, then thePhilippine ambassador to the UnitedKingdom. Mr. Zóbel, whose familycompany commissioned the work,noticed Mr. Cabrera’s interest in theLuz maquette and gave it to him.Born in Manila, Mr. Cabreratrained at the fine arts department ofthe University of the Philippines. Hemoved to London in the 1970s, aftermeeting and marrying an Englishwoman;they had three children, nowgrown. He returned to his homelandin 1986, after a divorce, and settled inBaguio, a mountain retreat about asix-hour drive north of Manila.His children, who live in Europeand the U.S., visit him once a year.They share his love for his collectionsand art. “The middle one, Mayumi,shifted to art now,” he says. “Sheusedtomodeland wastakingpsychology.But she has been drawing andnow taking fine arts in Los Angeles.”Mr. Cabrera’s own art keeps himbusy. He recently had an exhibitionat the Andrew Shire Gallery in LosAngeles. Some of his work is part ofthe Singapore Art Museum’s exhibition“Thrice Upon a Time: A Centuryof Story in the Art of the Philippines,”which runs until Jan. 31. Mr.Cabrera also is preparing for a onemanshow of his drawings at hismuseum next year. And in June, he’llbegin his second artist-in-residencyat Singapore Tyler Print Institute.Why do you have a museum as part ofyour home?I want to put some of my things ina proper setting. I was inspired bysome artists in Bandung [Indonesia].But I want to display otherthings aside from my own work forpeople to admire, so I have tribal artand contemporary art.When did you begin collecting?I started collecting comics whenI was young. When I got into thearts, I could not afford to buy booksso when I used to come acrossarticles on the arts in a magazine, Iwould cut it and then have it all bookbound. It was a good reference.When I started to make money, inthe 1960s, I was introduced tosantos [statues of saints that datefrom the country’s time as a Spanishcolony, 1565-1898].…Maybe it wasmy affinity to sculpture that mademe collect santos.When I got married we traveled.We went to India, Kathmandu and Istarted collecting Oriental thingslike thangkas [Buddhist painted orembroidered artworks] andBuddhas. In the 1970s, when I was livingin London, we started dealing inthese things.…We rented a stall in aflea market. This is where I metother collectors and I started concentratingon Filipiniana. Then youcould get maps of the Philippines forcheap. My first map I got in Rome fora dollar. Now it is worth about 35,000pesos ($755). It dates from 1575.What happened to the santos?I sold them [in the 1960s and1970s before moving to England].Do you miss them?I do. I wanted to focus on maps,books and prints. I have travelbooks from as early as the 1630s.When I came back to live in thePhilippines, I sold some of my mapsto start life again....I was forced tosell because I didn’t have muchmoney. I have been attracted toJapanese ukiyo-e, woodblockprints. I started collecting andTHE COLLECTOR:Benedicto CabreraCOLLECTINGAbove, the artistBenCab, as he isalso known, in hisstudio; right, an oldwooden cane fromthe Cordillera regionof the northernPhilippinesThe Filipino artist on Filipiana and his ‘Sabel’The thumbnail sketchHome: Baguio, PhilippinesSignature style: Figurative paintingsthat include ‘Sabel,’ a female vagrantNext exhibition: A one-man show ofdrawings at his museum, BenCab, inBaguio, spring 2010What he collects: Antique maps,books and photographs of thePhilippines; Cordillera tribal art;contemporary Philippine art; plantsRachel Rillo for The Wall Street JournalW4 Friday - Sunday, December 18 - 20, 2009 | THE WALL STREET JOURNAL ASIA.By Dorothy J. Gaiterand John BrecherWe know there aren’t reallyany can’t-miss presents.Over the years, we havegiven far too many sure-firewinners that were apparentlyforgotten before the wrappingpaper was thrown away. That said,with time short before you simplymust finish your holiday shopping,here’s an idea that’s pretty close tocan’t-miss: a bottle of Vintage Portfrom 2003.Wine lovers will appreciate thegift for its thoughtfulness becauseVintage Port is so special. Peoplewho have never had a real VintagePort will appreciate the gift becausethey’ve probably always wonderedwhat it’s like. And here’s the partyou don’t have to tell them: Thereare some tremendous sales on Portthese days.Many wines from all over theworld are called Port, whichusually means simply that they aresweet and alcoholic. Real Portcomes from the Douro region ofPortugal and while there are manykinds of real Port, from Tawny Portto Late-Bottled Vintage Port, themost special Port is Vintage Port(which says Vintage Porto on thelabel). It is made from variousgrapes, such as Touriga Nacional,and then is fortified with brandy,which stops the fermentation andleaves the wine with plenty ofresidual sugar and a lot of alcohol(around 20%). It is usually bottledabout two years after the harvestand is intended to have a long, longlife in the bottle.Not all years are good enough tobe generally declared a vintageyear by most Port houses. As ithappens, 2003 was one of thosereally good years and so was 2007.Do the math and you will see thatthe 2007 wines are just reachingshelves now. And one good thingabout tstill quihave athey arethan thHowone wetastingfrom $them innights.Becaalcoholcouldn’as withtaste PanotheyouwdifferenSomsugar aseem hpleasanthe betthere aandalbecomePort of callWhy the 2003 vintage is a gThe Dow Jones 2003 VintIn a blind tasting of Vintage Port from 2003, theseprices listed below are generally representative, weflexible, so shop around. We bought the Quinta do$26.87, but saw it elsewhere for up to $80; we pailater saw it on sale for $39.99. These are very youdecades, but that doesn’t mean they can’t be sippepour a little glass, cork or pump the bottle at the efine for at least a couple of weeks.W. & J. Graham’s$90. Delicious. Best of tasting.Everything seems to work in this wine.Dottie talked about its unique mix ofpower and finesse. It not only has hintsof chocolate, but almost a chocolate-liketexture, with tremendous earthinessand, despite its weight, a real brightnessto it. A Port for Port lovers—or to makea Port lover of anyone.Quinta do Crasto$50. Good/Very Good. Best value.Absolutely lovely wine, with remarkabledrinkability. Soulful and satisfying.Churchill’s$67. Very Good. Earthy and warm, richbut not thick, with prunes, blackberries,chocolate and a touch of rosemary. Nottoo sweet, so the flavors really pop out.Fonseca$100. Good/Very Good. Particularlylovely nobalance—sweetneblackberbite at tinterestinRamos P$75. Gootexture,that’s sumakes itJohn saichocolatSmith W$59.99. Gearthinesplums ancomplexNote: WGood, VePrices vaAndrew Scrivani for The Wall Street JournalBy Kelly CrowMiamiThe global art market isgradually regaining its stride,as Chinese and Russiancollectors return to buying art inauction hubs such as Hong Kong andLondon. Last weekend, the U.S.’spreeminent contemporary-art fairwent looking south for its owneconomic salvation. With someAsian and European collectorsskipping Art Basel Miami Beach andits 14 satellite fairs, Latin Americansemerged as the new power players.In recent years, as the art marketboomed,wealthy buyers from aroundthe globe have traveled to Miami forwork by contemporary artists fromblue-chip mainstays to obscureyoungsters. Now, while many collectorshave scaled back their art spending,dealers discovered that LatinAmerican collectors are still buying.Brazil’s economy is thriving. Prominentmembers of the Venezuelandiaspora in Florida and Texas have oilfortunes. Many top contemporarycollectors in Mexico, such as EugenioLopez, oversee manufacturingempires that make recession-resistantgoods such as fruit juice.Art Basel Miami Beach, hurt ayear ago by global economic turmoil,needed an enthusiastic collectingforce. In the end, attendance wasabout 42,000, up from 40,000 lastyear though down from 2007’s43,000, organizers say. And while aquarter of the 250-odd galleries thatparticipated last year didn’t return,says fair co-director Marc Spiegler,there were newcomers, includingFaria Fabregas Galeria from Caracas.The impact of Latin Americanbuying power was clear on Dec. 2,when the five-day fair opened.Sperone Westwater Gallery quicklysold a painting by Argentine artistGuillermo Kuitca—whosewaterydiagrams of theater stages are partof a major retrospective at theMiami Art Museum—for $250,000.Two Brazilian galleries said theynearly sold out on opening day,thanks to Brazilian buyers.“I’ve never seen so many of ushere before,” said Pedro Barbosa, achemical engineer from São Paulo,“and we’re buying.”Argentine collectors Juan Vergezand Patricia Pearson-Vergez, fromBuenos Aires, spotted a $27,000 bubble-likeballoon sculpture by Argentinianartist Tomas Saraceno in thebooth of Copenhagen gallery Andersen’sContemporary. Instead of takingit home, they told the dealerthey’d rather commission a similarsculpture at “double the size,” Ms.Pearson-Vergez says. (The gallerysaid 40% of its fair sales were toLatin Americans.)Art with a South American spinalso fared well at Pulse, a satellitefair. Miami artist William Betts wona $30,000 commission from a collectorto paint a larger version of hisfour-panel view of the Rio de Janeironeighborhood of Ipanema, accordingto his dealer, Richard Levy.Latin American collectors havelong been accustomed to buyingtheir own art stars, says PeterBoswell, senior curator at the MiamiArt Museum. Art Basel’s location inMiami appeals to wealthy LatinAmericans who already travel thereto shop or own second homes in thecity, he said. Among the 100museum groups that visited the fairwere trustees from such Latin-Americaninstitutions as Peru’s Museo deArte de Lima and Brazil’s Museu deArte Moderna São Paulo.Bolsa de Arte, a Brazilian galleryfrom Porto Alegre, joined the satelliteArt Miami fair this year. Braziliansaccount for 80% of annualsales, says owner Marga Pasquale,and at the fair a Brazilian collectorpaid $20,000 for Regina Silveira’s“Track Series Snakes,” a maze-likestrip of vinyl designed to look likemotorcycle tire tracks.It is unclear whether the LatinAmerican effect was enough tosignificantly boost sales at Art Basel,which doesn’t divulge overall salesfigures. Anecdotally, dealers seemedrelieved. The Marlborough Galleryhad one of it strongest opening days,according to senior director DavidRobinson, selling two dozen artworksfor about $2 million in total.But overall, collectors are still takingmore time with their purchases,and buyers routinely asked for—andreceived—20% discounts and perkslike free shipping.The satellite fairs tried variouscoping strategies. Pulse distributeda daily newsletter rather than printa catalog, saving about $17,000,organizers said. NADA, the fair runby the New Art Dealers Alliance,shortened its run by two days andmoved to a smaller site.Pulseadded astrong performanceartcomponent this year, with Colombianartist Maria-Jose Arjona’s dailyendurance tests, titled “Affirmations.”One day she stood for hourson four glasses containing goldfish;the next, on a huge chunk of ice embeddedwith nails and knives.Fair-goers strolling the beachnear the W hotel raved about one ofArt Basel’s offsite art projects:“Deseo,” a hut with a thatched roofthat Cuban artist Jorge Mayetconstructed to bob on the waves forthe fair’s duration.Southern comfortCollectors from Latin America buoy Art Basel Miami Beach‘Untitled’ by Guillermo Kuitca, atArt BaselBolsa de Arte‘Deseo’ by Jorge Mayet,one of Art Basel’s offsiteprojects, bobs in the seaoff Miami Beach; right,‘Cervideo Hannya’ by FLIP,at Graffiti Gone Global;below, ‘Track SeriesSnakes’ by Regina Silveira,sold for $20,000 at thesatellite Art Miami fair.Horrach Moya, Palma de Mallorca (‘Deseo’); FLIP (‘Cervideo’); Sperone Westwater, New York (‘Snakes’)ARTL-evolution Collectionwww.blancpain.comBLANCPAIN BOUTIQUESABU DHABI · BEIJING · CANNES · DUBAI · EKATERINBURG · GENEVA · HONG KONG · MACAU · MADRID · MANAMAMOSCOW · MUMBAI · MUNICH · NEW YORK · PARIS · SHANGHAI · SINGAPORE · TAIPEI · TOKYO · ZURICHW E E K END JOURNA L | Friday - Sunday, December 11 - 13, 2009 W3time offHong KongCONCERTZa Ondekoza: This ensemble has beenspreading the gospel of taiko—Japanese drumming, to oversimplifymatters—for 40 years now, much of iton foot, late founder Den Tagayasuhaving believed that “music andrunning are one.” So while touring theU.S. from 1990 to 1993, for example,the members piled up about 14,900kilometers, and after Mr. Tagayasu diedin 2001, the group ran from Sado toMt. Fuji—600 kilometers—giving threememorial concerts along the way.Yuen Long Theatre,9 Yuen Long Tai Yuk Rd.,New Territories; Dec. 11, 7:30 p.m.;Hong Kong Cultural Centre,10 Salisbury Rd., Tsim Sha Tsui,Kowloon; Dec. 13, 7:30 p.m.Admission: HK$100 toHK$250 (Dec. 11); HK$100 toHK$380 (Dec. 13).% 852-2111-5999Web: www.urbtix.hkEXHIBITIONImages of a Great Nation: Actuallytwo exhibitions, or even three. Oneintroduces landscape and peasant-lifephotos by Joseph C.K. Yeung, somewith touches of painted colors orpoetic inscriptions, and the other is atwo-part show offering more than 200works by members of the GreaterChina Photographic Society (coveringthe mainland, Taiwan, Macau and HongKong) on a theme of capturing thebeauty of their hometowns. The firstpart will be exhibited until January, andthe second part from then until March.The University Museum and ArtGallery, The University of HongKong, 94 Bonham Rd.; to Jan. 10(Yeung) and March 14 (Society),9:30 a.m. to 6 p.m. Monday toSaturday, 1 p.m. to 6 p.m. Sunday.Free admission.% 852-2241-5500Web: www.hku.hk/hkumagSingaporeMUSICALHigh School Musical—SummerCelebration: Disney extracts furthervalue from its “High School Musical”franchise with a live show featuringmore than 15 songs and dances fromthe three movies, among them “We’reAll in This Together” from HSM 1,“Fabulous” from HSM 2 and “Can IHave This Dance?” from HSM 3(“Senior Year”). Besides being able tosing along or even dance on theirown, audience members may beinvited onto the stage to dance.Singapore Indoor Stadium,2 Stadium Walk; Dec. 13, 3 p.m.and 7:30 p.m.; Dec. 13,2 p.m. and 5:30 p.m.Admission: S$25 to S$65.% 65-6348-5555Web: www.sistic.comTaipeiEXHIBITIONVan Gogh—The Flaming Soul: Aheadof the 120th anniversary of his death(next July), the artist finally gets hisfirst solo exhibition in Taiwan. VanGogh had just 10 years to create art,but left more than 800 paintings and1,200 drawings. The exhibition offers98 of them—21 oil paintings and 77drawings, some seldom seen—nearlyall from the Kröller-Müller Museum inthe Netherlands, and including itsgreat jewel, “Country Road in Provenceby Night,” a painting also known as“Road with Cypress and Star.”National Museum of History,49 Nan Hai Rd.; to March 28,Tuesday to Sunday,10 a.m. to 6 p.m.Admission: NT$30.% 886-2-2361-0270Web: www.nmh.gov.twTokyoEXHIBITIONThe Outline—The Unseen Outline ofThings: A two-man collaborativeshow, with 118 pieces by productdesigner Naoto Fukasawa and 65pictures of Fukasawa designs byadvertising photographer TamotsuFujii. The pursuit is “outline of design,”described as obvious yet invisible. Mr.Fukasawa says of Mr. Fujii’s work,“He’s captured both my designs andthe air that surrounds them.” Says Mr.Fujii, “I take photographs as though Iwere looking at a piece of scenery orat a sculpture.”2121 Design Sight, 9-7-6 Akasaka,Minato-ku; to Jan. 31, 11 a.m. to8 p.m.; closed Tuesdays.Admission: 1,000 yen.% 81-3-3475-2121Web: www.2121designsight.jpTour: AsiaCONCERTGuns ’n’ Roses: In one sense the U.S.hard-rock band has been around fornearly 25 years, which would beremarkable considering the continualtumult. But given that formermembers now number about 15, withguitarist Robin Finck just recentlyreplaced by DJ Ashba, it’s truer to saythat what has been around for 25years is the band name, owned by AxlRose, the one constant (Tracii Guns islong, long gone). Well, after all, theband’s first album was titled “Appetitefor Destruction.” When the latestalbum, “Chinese Democracy,” came outlast spring, it ended a 16-year albumdrought. Indeed, it had been 10 yearssince Guns ’n’ Roses released as muchas a new song. But here they are.Seoul: Olympic Park GymnasticsArena, Olympic Park,88-2 Bangi-dong, Songpa-gu;Dec. 13, 7 p.m.Admission: 110,000 won to132,000 won.% 82-2-1544-1555Web: ticket.interpark.comOsaka: Kyocera Dome, 3-2-1Chiyozaki, Nishi-ku; Dec. 16, 7 p.m.Admission: 6,000 yen to 12,500 yen.% 81-6-6362-7301Web: www.hip-osaka.co.jpTokyo: Tokyo Dome, 1-3-61Korakuen, Bunkyo-ku; Dec. 19, 6 p.m.Admission 6,000 yen to 12,500 yen.% 81-3-3475-9999Web: t.pia.jp/music/ygk/index.htmlTour: ChinaDANCERiverdance: A farewell tour, with fourcompanies—each named for an Irishriver—putting on “Riverdance” all overthe globe. In the 15 years or so sincethe wider world first saw a line of Irishmen and women dancing withoutmoving their arms, the sight hasgradually become less frightening.That’s just a small part of this show,which uses music and dance to traceIrish history from way back—stopsinclude the Bronze Age, with a lonepiper mourning the mythical hero CúChulainn, and the 19th-century faminethat helped drive the Irish to the NewWorld. This tour, by the BannCompany, also includes stops inWuhan, Shenzhen, Suzhou and Nanjing.Guangzhou: Guangzhou BaiyunInternational Convention Center,1039 Baiyun Ave. South, BaiyunDistrict; Dec. 15 to 20, 8 p.m.Admission: 180 yuan to 1,280 yuan.% 86-20-8776-8558Web: en.piao.com.cn/guangzhouShanghai: Shanghai GrandTheatre-Lyric Theatre, Renmin DaDao; Jan. 5 to 8, 7:15 p.m.; Jan. 9and 10, 2 p.m. and 7:15 p.m.Admission: 280 yuan to 1,680 yuan.% 86-21-6217-2426Web: www.culture.sh.cnBeijing: Beijing Exhibition Theater,135 Xizhimenwai St., XichengDistrict; Feb. 5 to 11, 7:30 p.m.Admission: 180 yuan to 1,680 yuan.% 86-10-6417-7845Web: www.piao.com.cnby William WestbrookHong Kong: ‘Shadow of Light in HongKong,’ by Yau Wai-keung; Tokyo: KDDIInfobar 2 mobile phone, designed byNaoto Fukasawa; Taipei: ‘Country Roadin Provence by Night,’ by van GoghUniversity Museum and Art Gallery (‘Shadow’); Tamotsu Fujii (phone); Kröller-Müller Museum, Otterlo, The Netherlands (van Gogh)W14 Friday - Sunday, December 11 - 13, 2009 | THE WA LL STREET JOURNAL ASIA.SportsTRAVELARTpletion by next May to coincide with Shanghai’s hosting of theWorld Expo—those plans seem to be on hold. Instead, Chongming’sfuture could veer into the realm of kitsch: China Dailyreported last month that a group of Chinese businessmenhopes to re-create Michael Jackson’s Neverland ranch here.After we leave the boat, my driver whisks me throughChongming town, which looks much like any other place inChina, though solar-powered light posts topped with miniwindmillstestify to the island’s eco credentials. We headthrough the middle of the island toward the bird sanctuarythat sits at the far eastern end—my drivers’s first trip to thispart of Chongming, though he grew up on the island.I was hardly surprised when my driver, Mr. Zhao, introducedhimself as a Chongming native. The island is bestknown to the rest of Shanghai as being the source of the city’staxi drivers. Shanghai, like most Chinese cities, insists thatits cabbies hold local residency permits. In the 1990s, thathelped soak up local workers laid off in the push to make stateownedfirms more efficient. Now it’s effectively a protectedsource of employment for economic migrants from Chongminglooking for opportunities beyond farming and tourism.Mr. Zhao moved to downtown Shanghai before the city governmentdecided in 1998 to protect Chongming’s wetlands asa bird sanctuary. This small corner of the island is the restingplace for hundreds of thousands of birds, including protectedspecies, as they make their seasonal migration between theNorthern Hemisphere and Australia and New Zealand.We’re greeted at the entrance to the marshes by a smallgroup of life-science majors from Fudan University in Shanghai,offering to point out and identify birds for us. Althoughhappy the government decided to protect the area—apparentlythe birds used to be fair game for poachers—thestudents think the authorities should do more to educatepeople about the importance of the ecosystem; for now,they’re trying to fill the gap by offering this free service.The wetlands’ appeal is mostly to the avid bird watcher. Forthe less devoted, there’s not much to do after reaching the endof the 50-meter walkway from the road out into the reeds. Butthe students’ enthusiasm is certainly infectious as they explainwhere the birds came from and how to distinguish them.The drive out to the wetlands might be worth the trip initself. Perhaps it’s just an effect of the mist, but once we get offthe main road it feels as though we’ve descended into a Chinesepastoral arcadia. Lush green fields are divided by waterways soclean I find myself wondering if I might come back with a canoeon a warmer day. The narrow roads are lined with tall pines, thecanal banks scattered with hedges. And it seems whereverthere’s a spare scrap of land, canola is planted, exploding withyellow. I would be happy driving around all afternoon, soakingup the fresh, clean air and the anti-Shanghai of it all.But coming out of wetland, we decide to head south to whatthe tourist authorities recommended as an eco-village. Thattakes us almost the length of what is slated to be the DongtanEco-city development, large swaths of which are earmarkedfor organic farms and parkland. The first phase is supposed totake some of the strain off ever-expanding Shanghai by providinghousing to 50,000 people in a low-energy-consumption environment,with a minimal carbon footprint. A “managed wetland”buffer protecting the bird park from any development ispart of the plan. However, according to the Britain-based ArupGroup, which won the contract to build the eco-city, there is asyet no date for construction to begin.The eco-village, just outside of—but unrelated to—theDongtan development, is dead quiet when we arrive, butalready promising to be Chinese tourism at its worst. A hugebillboard out front shows prices for cycling, boating, riverrestaurants—and pictures not only of cockfighting, but ramsfighting as well. It seems a long way from the enlightenedenvironmentalism the stalled Dongtan project is aiming for.Jumping back in the car, we head for one last destination,looking for something that might warrant more regularescapes from Shanghai in this direction. Just 15 minutes’drive from the port and perhaps the single biggest draw forShanghai day-trippers, Dongping National Forest Park billsitself as being “the largest man-planted forest in easternChina.” In many ways it’s less nature park than amusementpark: Rock climbing, rides, go-carts and horse riding are justa sample. Thankfully, though, at 358 hectares Dongping islarge enough to provide an escape from all this activity,which is concentrated on the eastern side. A 10-minute walkwest from the main entrance carries me to a quiet and shadypicnic spot. It’s a place where a visitor could relax and forgetabout the 18 million people on the other side of the river.But the time does come to return to the crowds—and, unfortunately,the mist on the river has grown so bad the boats havestopped running. By year-end, we’re promised a tunnel andbridge, with road and metro service, but tonight I’m stuck inChongming town. And despite the island’s pitch as a tourismdestination,only a handful of hotels are permitted to accept foreigners.So one final word of advice to would-be visitors: Waituntil the weather is fine. That should help ensure your day tripdoesn’t turn into something longer. For despite Chongming’scharms, come nighttime downtown Shanghai is the place to be.Scenes from Dongping NationalForest Park: Clockwise fromlower left, birds hung in trees bytheir owners greet visitors nearthe entrance; deer find forageon the closed and overgrowndriving range; a rented bicycle isa good way to see a park thatcovers 358 hectares; Dongpingclaims to be the largest manplantedforest in eastern China.WEEKEND JOURNAL | FRIDAY - SUNDAY, AUGUST 14 - 16, 2009 W7One-man studioPeter Jackson builds a global movie-making empire—from New ZealandBy John JurgensenOn the Hollywood set of “TheAdventures of Tintin” thisspring, Steven Spielbergdirected an actor in a motion-capturesuit as he portrayed the anticsof the globe-trotting comic-bookhero. One camera was beaming alive feed halfway around the world.Filmmaker Peter Jackson was watchingfrom his headquarters in NewZealand, and discussing the actionwith Mr. Spielberg via the video link.Four years after his most recentmovie hit the screen, Mr. Jackson,director of the “Lord of the Rings”trilogy, is gearing up for an extendedrun at the box office. In recent years,the director’s projects have beenshadowed by lawsuits, delays andstudio upheavals. Now, workingwith a stable of filmmakers, from fellowOscar-winners to first-timedirectors, Mr. Jackson is turning outa slew of new movies from his NewZealand-based production hub. Hehas entered the territory of a smallgroup of directors like George Lucasand Mr. Spielberg, who control theirown movie-making empires.This week is bringing the releasein the U.S., Singapore and Australiaof “District 9,” a sci-fi drama thatMr. Jackson produced and seededwith his own money. Though Mr.Jackson’s involvement has helpedbuild buzz for the film, about aliensmarooned in Johannesburg, themovie was directed by a young filmmakermentored by Mr. Jackson.Mr. Jackson is co-writing andproducing an adaptation of J.R.R.Tolkien’s “The Hobbit,” but he’shanding the directing reins to Guillermodel Toro, known for his fantasticalhit “Pan’s Labyrinth.”“In some respects, I’m still notsure if I made the right decision innot directing, because I’m enjoyingit so much,” Mr. Jackson says of“The Hobbit.”He hasn’t abandoned the director’schair. His $65 million adaptationof Alice Sebold’s supernaturalbest seller “The Lovely Bones” isbeing released in December in theU.S. and Australia.Though he shot much of “TheLovely Bones” in Pennsylvania, Mr.Jackson typically works in NewZealand. His largely autonomousoperation there includes massivesound stages, a postproduction facilityand an effects and design shopcapable of making everything fromchain-mail armor to operationalassault vehicles.“He has the equivalent of a fullstudio. He’s got tanks down there.Hangars of them. You don’t see thatanymore, not even in Hollywood,”says Bill Block, an executiveproducer of “District 9.”The set-up allows Mr. Jackson tokeep his distance from Hollywoodas he operates on the far side of theglobe without a traditional studiodeal, selling movies on the openmarket. It also gives him a hand inthe work of other filmmakers, suchas “Titanic” director JamesCameron, who relied on the facilities’cutting-edge technology for hiscoming 3-D sci-fi epic “Avatar.”Mr. Jackson’s operations—alongwith tax breaks offered by NewZealand—have turned his homebase of Wellington into a movie hub.In 1998, the year before Mr. Jacksonbegan shooting his “Rings” trilogy,four features were shot in NewZealand; last year, five times asmany movies were shot there.Even in New Zealand, Mr. Jacksonisn’t safe from Hollywooddrama. Both “Tintin” and “TheLovely Bones” temporarily wentinto limbo last year when Mr. Spielberg’sDreamWorks company splitfrom Paramount. An anticipatedmovie version of the hit videogameHalo that Mr. Jackson was producingfell apart in 2006.In 2005, Mr. Jackson and hispersonal and professional partnerFran Walsh sued New Line Cinemato force an audit on the first film inthe Tolkien trilogy, “The Fellowshipof the Ring,” believing they hadbeen shortchanged on profits. Thethree movies brought in about $3 billioncombined at the box officeworld-wide. The feud froze movementon a prequel project based on“The Hobbit,” with New Line executivessaying publicly that theywanted nothing to do with the director,and Mr. Jackson announcing hisdays in Middle-earth were over. Asettlement in December 2007,paved the way for two live-action“Hobbit” films from New Line, withMr. del Toro tapped to direct.“This was purely a businessdispute,” says Mr. Jackson’s manager,Ken Kamins. “Once it was resolved,everyone was happy to proceed withan ongoing creative relationship.”A different lawsuit that does notinvolve Mr. Jackson now threatensprogress on “The Hobbit” again. In acase scheduled to go trial in October,the heirs of Mr. Tolkien have suedNew Line for their share of revenuesfrom the trilogy (they say they’vereceived none) and to terminate thestudio’s rights to “The Hobbit.” Aspokesman for Warner Bros., NewLine’s parent company, declined tocomment on either lawsuit.The attorney representing theTolkien family, Bonnie Eskenazi,says the lawsuit isn’t a judgment onMr. Jackson’s work. “This lawsuithas absolutely nothing to do withthe quality of the films,” she says.“It has to do with the money.”Mr. Jackson says of the pendingcase, “I can only assume that whateverthe result is, it will allow thefilm to get made and completed.”Because a script and budget havenot yet been submitted to the studio,however, he says, “The Hobbit”doesn’t have an official green light.Fans weresalivating overthe prospectof “The Hobbit” long before theproject was officially announced twoyears ago. At last month’s Comic-Con, a gathering in San Diego forsci-fi and fantasy enthusiasts and theentertainment companies that caterto them,the directorreceived astandingovation in the convention’s biggestroom, the 6,500-seat Hall H. Itwas the self-described geek’s first inpersonappearance at the 40-yearoldannual event (he said his shootingschedule had never allowed it),and he snapped photos from thestage. Mingling with the fans masqueradingas Klingons and Star Warsstormtroopers were devotees of Tolkien,including middle-aged triplets,known as the Ring Sisters, who worepeasant dresses and furry plasticHobbit feet.Out on the exhibition floorcrowded with costumed conventioneerswas a booth stocked with laserguns, ornate swords and statuettes.It was the handiwork of Weta Work-Mr. Jackson produced ‘District 9’ (top), directed ‘The Lovely Bones’ (above, left), and is working with Steven Spielberg to adapt the Belgian comic ‘Tintin’ (above, right).v FilmColumbia TriStar Marketing (‘District’); Dreamworks Studios (‘Bones’); Everett Collection (‘Tintin’); TriStar Pictures (Comic-Con)W10 FRIDAY - SUNDAY, AUGUST 14 - 16, 2009 | THE WA LL STREET JOURNAL ASIA.note of caution: Theorate-dress advice goesuthors suggest a strapminidressis approprirporatecocktail party ifjacket. Many executivesotherwise.’s Bazaar Fabulous atis, as billed, a “quick andto fashion.” Its well-illussare laid out by decade ofe beach guide includes avice for 60-somethings,with a photograph ofen Mirren in a crimsonand snorkeling gear, ande for 70-somethings. Weeasy to get dressed whenut it’s positively upliftinguch smart advice on howa wardrobe, look great inuy the right dress whenr 50 or 75.a good chance you’veh of Michelle Obama’st if you’re among thoseore, “Mrs. O: The FaceDemocracy” is amongorough of the books onady and her wardrobe.gary, the book featuress that can provide helpionfor working women.hensive exploration ofle, from her high-schoolhotosto the “Tonightarance and the Obamas’our, makes this book ashion historians.By Joe Morgenstern‘Where the Wild ThingsAre” honors the book inevery imaginable way,and in ways no one could haveimagined until Spike Jonze and hiscollaborators came along. MauriceSendak’s beloved classic ofchildren’s literature, a tale told inmysteriously droll illustrations and338 words, has grown into a moviethat feels vast in scope, yet remarkablyintimate and tender. And littleMax, the willful kid in the wolf suit,has found his flawless embodimentin a boy whose real name happens tobe Max Records. Like the hero of thebook, this Max projects a fantasyworld from his yearnings, fears andanger. But the movie invests thoseprojections with such intense andgenuine wildness as to make theircreator a veritable Wizard of Id.The filmmaker, Mr. Jonze, hasdone only two features until now,“Being John Malkovich” and “Adaptation.”Both were strikinglyoriginal, marvelously intricate andnotably erratic in their plot and structure.They made him an excitingchoice to direct this one, though alsoa risky choice, since the Sendak bookis essentially plotless. (Boy misbehaves,boy’s unseen mother sendshim to bed without supper, boy’sroom becomes a forest populated bybizarre creatures who make himking and do his bidding until he feelshungry for love and heads backhome.) Happily—and improbably,given the potential for outragingwhole generations of readers—therisks have been managed by takinggreater risks, and some brave ones.This adaptation, by the directorand his celebrated co-writer, DaveEggers, makes Max a somewhatolder (maybe 8 or 9) and muchangrier child than the original—allthat wildness doesn’t come fromnowhere—as well as a wrenchinglyvulnerable child whose adventuresare elaborately rooted in his everydaylife. His mother is not only seenbut powerfully felt: CatherineKeener, an actress of unforcedwarmth and uncommon humor, hasnever been so affecting, even whenthis loving mom vents ample angerin her turn. (Mark Ruffalo appearsbriefly as her boyfriend.)After establishing Max’s sensitivityand loneliness with a few deftstrokes, the movie makes him amore active protagonist than theboy of the book. Instead of stayingin his room until the wild thingsappear, he runs, boats, struggles tostay afloat during a terrifyingstorm, sinks, swims and finallymarches up the beach of his subconsciouswith a heedless resolve that’sperfectly reflective of his hurt andanger, and guaranteed to get himinto unmanageable trouble.I have no idea how Mr. Jonzeelicited the performance we see onthe screen. Directors often trick,cajole, surprise, bribe or badgerchild actors into doing what theywant them to do, but you have nosense of that here. There’s a nearlyeerie purity to Max Records’sresponses, whether his alter Max isimpressing monsters in his grandiositymode (“I have power fromanother land. From ancient times.Don’t make me show you.”); choosingup sides in a wild rumpus to come(“I’ll be on my own side. By myself.”);screeching an order for the rumpusto begin (what a charming old wordthat is, and what a grand screech thekid gives); smiling a smile of serenepleasure from the cozy bottom of amonster pile (the movie captures thechildhood magic of safely envelopingspaces), or, as his pretend powercomes up against the reality ofdream logic and warring factionsemerge, trying to solve the problemthat’s blighting his young life: “Howdo I make everyone OK?”The truth, of course, is that hecan’t. He can’t make his motherhappy, can’t fix whatever’s wrongwith his family, can’t bring back hisabsent father (who has given himthe world in the form of a plasticglobe), can’t comprehend theconflicts of that world until he getsolder, can’t be someone he is not. Tobring him to an understanding ofwho he is—his fully sufficient andmuch-loved self—the movie dramatizesthe book’s psychologicalsubtext with an assortment of wildthings that leap from the Sendakdesigns into joyous, boisterous life.And the marvels they representdon’t stop at the techniques—liveaction, animatronics, digital animation—thatset them inmotion.They’re given voice by a superb castthat includes James Gandolfini,Lauren Ambrose, Forest Whitaker,Catherine O’Hara, Chris Cooper andPaul Dano.The wild things represent anunavoidable risk, since they’reobliged to evoke the creatures of abook that is, by now, almost half acentury old. Will today’s media-saturatedkids look on them as quaintimitations of monsters they’veknown, if not loved, on the bigscreen and TV? That remains to beseen. What seems certain is that thephysical and vocal music of the wildthings—the glorious music on thesound track was written by Karen Oand Carter Burwell—will strike adeep chord with filmgoers who’veread the book to their children, orwho remember having had it read tothem. (As I write this I can almosthear, across the decades, a chorus ofparents, including me, acting outthe run-on sentences with reassuringsilliness: “The wild thingsroaredtheir terrible roars andgnashed their terrible teeth and....”)Of the risks taken electively, themost conspicuous is a rebirth scenethat’s closer to Jung than Sendak(notwithstanding the author’s debtto psychoanalytic wisdom); whilesome may scoff, I found the sceneshockingly beautiful. But then theboldest risk was expanding onMaurice Sendak in the first place,and it pays off handsomely—not onlywith the emotional resonance of suchwish-fulfilling inventions as goodand bad mother figures and a fatherfigure who swings from loving todisparaging and back to loving in theend, but with such gentle touches asMax’s secret anxiety about the healthof the sun, which, his teacher tells theclass, will eventually go dark.A few sequences are dark, too,while a very few others mayfrighten young children (or not; it’shard to overestimate how blasésome kids have become). For themost part, however, “Where theWild Things Are” is suffused withthe glow of Lance Acord’s cinematography,and with the brightness ofCasey Storm’s costumes, K.K.Barrett’s production design (neverhas so much been owed to so manytwigs) and Spike Jonze’s ever-gracefuldirection. As wish-fulfillmentsgo, this is a movie lover’s dream.‘Fantastic Mr. Fox’Life is full of surprises. The bestone I’ve had in a good while is “FantasticMr. Fox,” Wes Anderson’sstop-action animated version of theclassic children’s novel by RoaldDahl. Who could have guessed—certainlynot me—that animation andMr. Anderson, most recently thedirector of “The DarjeelingLimited,” would be an inspired, andmutually inspiring, match? Insteadof the vapid motion-captureprocess of “A Christmas Carol,” heand his collaborators give us a captivatingentertainment for theholiday season and well beyond.The script, which the directorwrote with Noah Baumbach, takeselaborate liberties with its sourcematerial. Now the bane of threefarmers’ existence is a

WSJ. The Magazine from The Wall Street JournalA global magazine that focuses on influence and affluence. WSJ. is a celebration of the rewarding life of Journalreaders. With intelligent and authoritative writing, irreverent humor and striking images, WSJ. brings to life theworlds of art, fashion, design and philanthropy and more.FALL 2009HUNTER:The people, places and conceptsthat inspire us.WS J.HUNTERF I N DI NG T HE F I T T E S T21Fall 2009 ˜ Issue 5REBEL YELLPITCHPERFECTAward-winning creative andchairman of ad agency Droga5,Dave Droga on change,charity and the consumerGatherer:What to buy, whatit’s worth, andwhere to get it.Forbidden FruitSELLING LUXURY IN THE AGE OF A BSTINENCEWS J.GATHERERDave Droga getsin touch with hisinner Mad Man: suitand shoes by Prada,shirt and tie byDolce & Gabbana.S E E KI NG T HE F I N E S TFor details,see SourcesSTYLING BY ERIN TURON; SET DESIGN BY STOCKTON HALL; HAIR BY PASQUALE FERRANTEART LIST; MAKEUP BY CHRISTINA REYNARAY BROWNPhotograph by Jeff Riedel110909_WSJ_P21_V1.indd 1 31Winter 2009 ˜ Issue 6This is not survival of the fittest—it’s mutationof the species that is crucial for our industry.This is no longer an industry ruledby assumption. We were going throughthe motions, spending a lot of money.All of that has evaporated. As a creative,I’m exhilarated. I’m not happy about thehuman stories that go along with any failureof any industry, but it’s a great timefor our industry to take back its credibility,break down all the clichés, and reestablishitself as relevant.I secretly wish I had experienced advertisingin the “Mad Men” period. I would loveto be sitting here with a cigarette and amartini right now, just saying, this is allexcellent. But in the early ’90s it becamethe battle of who could do the biggestrazzmatazz, and that just made the industrylazy, lazy, lazy. The fundamental problemscame when advertising tried to belike Hollywood.We’ve moved from being creators to beingcurators as well. The key to good advertisingis knowing when to talk to the consumerand when not to. The best type of advertisingis participation advertising. Thedays where we were just storytellers areover. The stories have moved from beingcomplete neat packages—30-second televisioncommercials or full-page ads are no8/25/09 5:15:08 PMTHE SPECIALISTMARRONMADE INHEAVENOnce almost extinct, the sweetU.S. chestnut is the mostunique flavor of the seasonBY WILLIAM R. SNYDERFOR DETAILS, SEE SOURCESThe art of getting chestnutsout of trees has remainedpretty much unchangedthroughout American history.It involves a club, a good throwingarm and buckets. Native Americans andfrontiersmen would hurl clubs at the nutladenbranches that hung 100 feet over theforest floor. Chestnuts were ground intoflour, fire-roasted or eaten raw, providinga staple for the long winters. But whenthe blight came in 1904, caused by thefungus Cryphonectria parasitica, it wipedout some four billion trees—99 percent ofthe American chesnut population—leavingonly a few hidden stands for foragersGreen spinescover the burr,the Americanto haunt and nearly erasing the nut fromchestnut’sprotection our culinary consciousness.against hungryFor Patrick O’Connell, owner of thebears, squirrelsand deer. Inn at Little Washington, near Virginia’s16

The Journal ReportProviding readers a detailed look at single subject of critical interest. Journal Reports cover a wide range of topicsand are often published as a pull-out, central section of the newspaper. Regular reports include Environment,Energy, Technology and Business Insight.14 THE WALL STREET JOURNAL. Monday, December 14, 2009Future of FinanceThe Journal ReportASIAFixing Global FinanceAt The Wall Street Journal’s second Future of Finance Initiative, top financiers hadplenty of suggestions for reforming the system. But they would only go so far.Too Big to FailTOP PRIORITY:BETTER GOVERNANCE15Regulatory FrontierTOP PRIORITY:IMPROVE REGULATORY RESOURCES17More than a year has passed since an unprecedentedcrisis pushed the world financialsystem to the brink. Yet plans torebuild that system on more stable footing remainembryonic. Differences among regulators, businessesand governments have slowed reformplans. And hefty bank profits, fed by easy creditand government aid, have drained the sense of urgency.To re-energize overhaul efforts, The WallStreet Journal last week gathered 80 top financiersat a lodge south of London for its second Futureof Finance Initiative. The group, which includedbank executives, hedge-fund operators,money managers, policy makers and academics,deliberated on the most important steps movingforward.Their recommendations acknowledge the needfor a stronger role for government regulators. Atthe top of their list was a call for increasing thecapital that financial institutions must hold, withhigher requirements for institutions posinggreater risks to the system. Second on the list wasa call for the Financial Stability Board to imposetoughened regulatory standards across nations.The financiers, however, shied away fromother, more intrusive government actions. Theyrejected a proposal requiring institutions to getregulatory approval before selling innovative newproducts. They steered clear of proposals thatwould force institutions deemed “too big to fail”to divest certain businesses. And they dodged theexplosive issue of compensation.That led one ex-regulator, former Federal ReserveBoard Chairman Paul Volcker, to chastise thegroup for not going far enough. “Wake up, gentlemen,”he said. “Your response is inadequate.”This report includes the group’s 20 recommendationsfor action, as well as highlights of themeeting’s discussions. Given the considerableknowledge and expertise of the participants, thisreport should shed light on the path to a healthyand stable future for global finance.—Alan MurrayPLUS: An interview withPaul Volcker on the downsideof innovation, 18I L L U S T R A T I O N S B Y R A Y B A R T K U SInternational RegulationTOP PRIORITY:EMPOWER THE FINANCIALSTABILITY BOARD16Financial InnovationTOP PRIORITY:OVERHAUL RATING AGENCIES16Monday, December 14, 2009CORPORATE NEWSTHE WALL STREET JOURNAL.UAW sets next presidentNegotiator for Ford contract expected to be nominated to lead unionBY MATTHEW DOLANAND JEFF BENNETTUnited Auto Workers union officialsnext week are expected tonominate the head of the union’sFord Motor Co. negotiating groupas its next president, according to aperson familiar with the selection.Bob King, 63 years old, is supportedby current president, RonGettelfinger, who is planning toleave the post and will oversee thenomination process at a meeting onWednesday, the person said. Mr.King currently oversees the union’srelationship with Ford.While the nominations of Mr.King and several others are not expectedto face serious opposition,their selection will have to be approvedby rank-and-file members ata UAW convention next June. NeitherMr. Gettelfinger nor Mr. Kingcould be reached for comment.The change in leadership comesas the U.S. auto industry’s future appearsto be brightening. Ford hassaid it expects to turn profitable in2011 while General Motors Co. andChrysler Group LLC are reshapingthemselves after bankruptcy filingsthat removed billions of dollars ofdebt from their balance sheets.The UAW now owns stakes inChrysler and GM as part of thebankruptcy and has seats on theboards of both auto makers.“My sense is that the membershipis hoping Bob will be a toughernegotiator,” said Brian Pannebecker,a 13-year veteran at Ford’s SterlingHeights plant that produces partsfor F-series pickup trucks.The UAW continues to shrink. Itsmembership is now below 435,000amid the buyouts of thousands ofDetroit Three auto workers in recentyears.Associated PressUAW Vice President Bob King, at left with UAW President Ron Gettelfinger, isexpected to be nominated as the new head of the union.Union spokesman Roger Kerson versial concessions, including acouldn’t be reached for comment. measure that would bar the unionFord spokeswoman Marcey Evans from striking, according to two peoplefamiliar with the matter.said the auto maker doesn’t commenton internal changes at the The concessions were aimed atUAW.putting Ford on par with those offeredto GM and Chrysler as part ofMr. King graduated from the Universityof Michigan in 1968 and receiveda law degree in 1973 from the Rank-and-file members overwhelm-their bankruptcy restructuring.University of Detroit. He was ingly rejected the concessions.elected to a third term as vice presidentof the UAW in 2006 and gained ing to do,” said one of the two peo-“He will have some bridge build-notoriety for guiding a new contract ple familiar with the matter. “Wewith Ford through a rank-and-file know he was in a rough spot but hevote in 2007.needs to come out and take charge.”Ford was the only auto maker Mr. King competed for the topnot to suffer a strike as the UAW job against Dennis Williams, a regionalUAW director who joined thealso negotiated contracts with GMand Chrysler.union in 1977 and now oversees operationsin several Midwest states,Mr. King long had been consideredMr. Gettelfinger’s successor. according to the person familiarHis image took a hit in October and with the matter. The union spokesmandeclined to make Mr. WilliamsNovember when he asked Fordunion members to approve contro-available to comment.Asustek plans to spin off unitBY CHARMIAN KOKTAIPEI—Asustek Computer Inc.said it plans to proceed with aspinoff of its contract manufacturingunit in July, a move that the Taiwanmaker of motherboards andnotebook computers hopes will let itfocus on building business aroundits own brand.As part of the move, Asustekshareholders will receive 2.29 billionnew shares in a newly establishedcompany, to be called PegatronHolding, that will incorporateAsustek’s Pegatron Technology unit.Pegatron Holding will then seek alisting in the second half of 2010,David Chang, Asustek’s chief financialofficer, said during a news conferenceThursday.Asustek said it values PegatronHolding around $2.9 billion.Asustek started out primarily asa contract manufacturer but in recentyears has made headway sellingproducts under its own Asusbrand. In 2007 the companylaunched the world’s first netbook,called Eee PC. Netbooks—lowpriced,slimmed down notebookPCs—are now one of the industry’sfastest-selling segments.As Taiwan’s technology industrymatures, several companies such asAsustek have been shifting frommaking PCs, gadgets and componentsfor others toward buildingproprietary brands.The shift comes as the companiesseek better profit margins andto establish a global presence.Analysts say the strategy of Taiwancompanies building own-brandproducts is sound given the increasingcompetition from China and Indiathat could limit further growthin contract manufacturing.The planned spinoff of Pegatronfollows through on a blueprint unveilednearly two years ago, whenAsustek first split its contract manufacturingoperation into a separateunit.The goal of the changes is to reducecompetition between Asustek’sown brand and the big-name PCcompanies for which its contractmanufacturing arm produces.“We are spinning off Pegatron soit can have more contract ordersfrom other PC brands,” Mr. Changsaid.Vodafone open to selling Bharti Airtel stakeBY JAI KRISHNAAND RUMMAN AHMEDBANGALORE—The U.K.’s VodafoneGroup PLC is open to sellingits 4.4% indirect stake in Bharti AirtelLtd., India’s largest mobile operatorby revenue, a company representativesaid Sunday.“We are open to discussions concerningthe Bharti shareholding ifany potential buyers wished to engagewith us,” the representativesaid.The statement also said Vodafonewould consider listing VodafoneEssar Ltd., its Indian telecomunit. “An [initial public offering] isan option which we will decide uponin the future dependent on variousfactors, including any requiredchanges in the shareholding structureof Vodafone Essar,” it said.Vodafone Essar is the third-largestmobile company after RelianceCommunications Ltd., the secondlargestservice provider based onthe number of subscribers in India.Competition in India, the fastestgrowingmarket for wireless servicesin the world by the number ofnew users, is stiff, with companiesoffering charges as low as one centa minute for some calls and billingsbased on usage per second undercertain schemes.WenamiBY HIROYUKTOKYO—Wendy’s wipan as the lfast-food chthroat comZenshoWendy’s buTokyo mettrademark ahamburgerwiththe Weon Dec. 31Thursday.With 601,900 part-Japan rackeyen ($70 mended in Mprofit in thSW>17

DigitalThe Wall Street Journal Asia delivers unparalleled news and analysis through a vast network of online and digitalplatforms.Online, WSJ.com is the leading provider of business and financial news and analysis on the web with more than1.1 million subscribers and 23 million visitors per month. Our online network includes an every-growing portfolioof Asia-specific offerings including asia.WSJ.com, india.WSJ.com, cn.WSJ.com and jp.WSJ.com. Digital offeringssuch as WSJ Mobile Reader for BlackBerry and iPhone also continue to grow as the desire for news on-the-goinspires new technologies, expanded functionality and enhanced delivery.asia.WSJ.com:An English-language website providingauthoritative business news with localand regional focus. The dedicated Asiaplatform provides a more regionallyrelevant experience with streamlinednavigation and various multimediafeatures.india.WSJ.com:An English-language home pagetailored specifically for an Indianaudience which includes originalpages produced in India, includingManagement and India ChiefMentor blog.18< The Wall Street Journal Asia | Content Guide

cn.WSJ.com:A Chinese-language website offeringnews and analysis specifically tailored fora Chinese-speaking audience. Positionedas the Chinese arm of Dow Jones globalmedia, it draws the editorial intelligencefrom Dow Jones global news network,while addressing the need of local readersthrough the efforts of a dedicated bilingualteam. Real-time news and analysis areavailable.jp.WSJ.com:A Japanese-language business and financialnews subscription website with global andregionally-relevant content. Includes Japanesetranslations of content, including video andother multimedia, from all print and onlineeditions of The Wall Street Journal Asia andother Dow Jones publications.Mobile:Includes WSJ Mobile Reader, WSJ India Mobile, WSJ Asia MobileSite and CWSJ Mobile Site:• WSJ Mobile Reader: provides an Asian audience a dedicatedversion with instant access to news anytime, anywhere withpersonalized feeds including global business, Asia news, Chinaand India news;• WSJ India Mobile: provides India readers a dedicated platformto receive the most authoritative global business news with a localand regional focus;• WSJ Asia Mobile Site: provides continually-updated Asia news,information analysis and available via any web-enabled mobiledevice or smartphone;• CWSJ Mobile Site: provides Chinese-language contenton-the-go.>19

MARKETSKeep abreast of key markets around theworld, with insightful news and viewsbrought to you on a daily basis. Followcritical analysis on key industry sectors,and learn how events across the globecan affect the markets and directly affectyou.ECONOMICSFind out how and why money makesthe world go ‘round with The Journal’s360-degree coverage, straightforwardexplanations and comprehensivestatistical reporting about the world’smoney markets. Get unique insightinto how market fluctuations, leadingindicators, political events and policychanges affect the economy.ENTREPRENEURSHIPFrom features that focus on the elementsof business success and failure, to directconnections to business planning toolsand financial resources, The Journal givesyou a vast playing field for opportunity inclass and in your future career.Using the Journal in Your Major20< The Wall Street Journal Asia | Content GuideBy Robert Lee HotzResearchers powered up theLarge Hadron Collider—a $6 billionparticle accelerator nearGeneva—on Friday. The atomsmasher is so large that a brief statusreport lists 2,900 authors, socomplex that scientists in 34 countrieshave readied 100,000 computersto process itsdata, and so fragilethat a birddropping a breadcrust can short-circuit its power supply—asoccurred earlier this month.Far from trouble-free, the protonacceleratoris resumingoperationsaftera catastrophic breakdown in 2008thattriggeredayearofrepairsandrecriminations.Its large researchteams operate on such an elaboratescalethatprojectmanagementhasbecomeone of science’s biggest challenges.Around the world, scientists arecuttingacrossboundariesofplace,organizationand technical specialty toconduct ever more ambitious experiments.Inspired by such cooperativeenterprises as Linux and Wikipedia,they are encouraging creative collaborationsthrough networks of blogs,wikis, shared databases and crowdsourcing.Once a mostly solitary endeavor,science in the 21st century has becomea team sport. Research collaborationsare larger, more common,more widely cited and more influentialthan ever, management studiesshow. Measured by the number of authorson a published paper, researchteams have grownsteadily in size andnumber every year since World WarII.To gauge the rise of team science,management experts at NorthwesternUniversity recently analyzed2.1 million U.S. patents filedsince 1975 and all of the 19.9 millionresearch papers archived in the Institutefor Scientific Information database.“We looked at the recordeduniverse of all published papersacross all fields, and we found thatall fields were moving heavily towardteamwork,” says Northwesternbusiness sociologist Brian Uzzi.As research projects grow morecomplicated, management becomesa variable in every experiment. “Youcan’t do it alone,” says research managementanalyst Maria Binz-Scharfat City College of New York. “Thequestion is how you put it all together.”The key is bringing the people togetherin the first place, which hassped technological advancementsthat often benefited the rest of us.The ease of global business and socialnetworking today owes much to theWorld Wide Web, which was designedtoaidinformation-sharing betweenscientists. It was invented atthe European Organization for NuclearResearch (CERN), the home ofthe Large Hadron Collider.New online science managementexperiments are under way. Lastyear, the National Science Foundationstarted a $50 million project tomap all plant biology research, fromthe level of molecules to organisms toentire ecosystems, so scientists canswoop through shared data as if theywere using Google Earth. Lastmonth,U.S. computer experts launched a $12million federal project to create a nationalbiomedical network called VI-VOweb to encourage collaborations.Scientists are experimenting withthe new technology of teamworkeveninmathematics,whereresearcherscustomarily work alone.Last January, British mathematicianTimothy Gowers invited volunteersto work on a problem in combinatorialresearch called the densityHales-Jewett theorem, which heposted at his Polymath Project blog.By brain-storming together online,two dozen volunteers solved theproblem in 37 days. “This way of doingresearch led to our finding theproof much more quickly than otherwise,”says Dr. Gowers at CambridgeUniversity.Other scientists team up out offrustration. Biology students createdan online collaboration called Open-Wetware to share technical tipsabout cell lines, enzymes, protocolsand screening assays. “This stuff isnever published,” says Sriram Kosuriat the Harvard University Institute ofGenetics, who was among its organizers.“We wanted to get this informationinto the open.”Since 2005, the project has growninto an online collaborative of 7,000registered users on five continentsand 65,000 Web pages—all with littleor no direct management. “Everyoneuses it for their own purposes and itgrows organically,” says Dr. Kosuri.In that spirit, paleontologistMichael Taylor at the University CollegeLondon recently set up the OpenDinosaurProject, encouraging volunteersto create an online database ofdinosaur bones from collectionsworld-wide. “The whole nature of thescientific engagement is changingdramatically and quickly,” Dr. Taylorsays.Bymanymeasures, theLarge HadronCollider is the largest machine inthe world. It is designed to smash togetherproton beams to test ultimatetheories of matter. Its science teams,drawing on independentresearchers,resources and funds from 150 universitiesand dozens of governmentagencies, alreadytranscend the physicsof conventional management.Strictly speaking, no one is incharge.Consider Tejinder Virdee, who occupiesthe top spot in the organizationalchart of the collider’s CompactMuon Solenoid detector—an intricate12,500-ton device the size of amedieval cathedral. At least 3,600people from 183 institutes in 38 countriesare involved. Ordinarily, Dr.Virdee might exercise considerableexecutive authority. Instead, he carriesthe misleading title of “spokesperson.”He was elected by researchersto negotiate with other groups ontheir behalf.He has no power to order or insist,only to cajole and persuade. “Icannot direct anybody to do anythingthat they do not want to do,”Dr. Virdee says. “All decision-makingis by consensus.” Yet, he is moreor less the boss—at least of this component.All around the collider, researchgroupsorganizedthemselvesindemocraticcooperatives, arranged in ananti-hierarchy. All deliberations areopen—and exhaustive. Everyone getstheir say no matter how long it takes.“It is bottom-up and not top-down,”says Markus Nordberg, who is the resourcecoordinator—essentially thechief financial officer—for the collider’sATLASdetector.TheATLASdetectorweighsasmuchastheEiffelTowerand is among the largest collaborationsever attempted in the physicalsciences.“None of them can do the researchwithout each other,” says BarbaraGray, a management analyst at PennsylvaniaStateUniversity.“Noone canplay with the Large Hadron Colliderunless they all play together.”In one sign of trust, the scientistswho designed the systems relied ontechnologies that did not yet exist,delaying key decisions as long aspracticable in the expectation someonewould invent a way out of theproblem. “There is enough confidencein the community that thetechnical problems will be solved atthe last possible affordable moment,”says Dr. Nordberg. “That isnot the way industry works.”If all performs as planned, researchteams will equally share thedata and the credit.For all their skill, the scientistsstarting up the Large Hadron Colliderhave encountered any numberof operational glitches this yearand, perhaps, one unique obstacle.The accelerator is expected to unleashforces so fundamental—evena black hole, some fear—that a fewphysicists fret the universe may besabotaging the project to protect itself.See a video on the Large HadronCollider and scientific partnership,at WSJ.com/ScienceJournal. EmailRobert Lee Hotz at sciencejournal@wsj.com.Researchers ready the Large Hadron Collider, which physicists hope will reveal the forces that shaped the universe.SCIENCEJOURNALScientists treat experiments as team sportMassive collider—a global collaboration—has a bumpy start, but sometimes the work of crowds yields wisdomSCIENCECERNvEnjoy The Wall Street Journal Asiaat these fine hotels...To Participate in the Executive Dining Program, please email to: philip.owens@dowjones.com.Executive Dining features some of theleading hotel restaurants in Asia.For more information about this program,please contact Mr. Philip Owens atTel: 2831-2570 | Fax: 2893-5090,or visit www.wsj-asia.com to subscribe.14 THE WALL STREET JOURNAL. Monday, November 23, 2009Monday, November 23, 2009 THE WALL STREET JOURNAL. asia.WSJ.com&BUSINESSFINANCE.Hershey’s trustees backa bid for CadburyBUSINESS & FINANCE 29JAL’s travails cloud theoutlook of ANAHEARD ON THE STREET 40Investors dial back risk earlyCaution is driven by urge to protect big gains, changes to some fiscal years; Treasury yields go negativeSIGNS OF wariness are appearingin financial markets as investorsworry that the end of theyear could bring challenging tradingconditions.Last week saw a steep drop off inU.S. stock-market trading volumeand a surge in demandfor shorttermgovernmentdebt, indicationsthat investors and financial institutionsare growing cautious and retreatingfrom riskier bets.That defensive behavior is relativelycommon toward the end ofthe year. But this year it’s happeningearlier than usual. An uncommonconfluence of events is drivingthe shift. The biggest catalyst is areluctance among investors to takeon new aggressive bets and avoid alate-year blow-up in their portfolios.Many are sitting on big gains aftera 58% surge in the Dow Jones IndustrialAverage since early March andrecord returns from some corporatebonds.“People who have booked somesignificant gains…are looking totake risk levels down,” says BrianFagen, co-head of Americas liquidmarket sales at Barclays Capital.Banks looking to improve theircapital positions have been paddingtheir investment portfolios with U.S.Treasurys, driving up demand forgovernment debt. At the same time,investors are wary that a shift byWall Street brokerage houses to endtheir fiscal year on Dec. 31 insteadof Nov. 30 may make them less willingto take risk in the final fewweeks of the year.“There could be some odd thingshappening around the end of theyear,” Mr. Fagan says. Should therebe some unexpected news thatdrives the market higher or lower,“it could exacerbate the movements.”Beyond the calendar, there arefundamental reasons for the heightenedcaution. After the rebound inthe stock and bond markets thisyear, there is considerable uncertaintyabout the outlook for 2010.In the bond market, investors areunsure about how the Federal Reservewill wind down its support ofthe mortgage-backed securitiesmarket and the timing of an eventualincrease in interest rates.Stock investors are awaiting apickup in corporate revenue growththat is seen as needed to extendbetter-than-expected earnings thatthus far have been led by cost cutting.Many investors are concernedabout ripples from a continued risein unemployment, and expectationsPlease turn to page 32BY TOM LAURICELLAAND JOANNA SLATER*Weekly data, NYSE listed sharesSources: WSJ Market Data Group (volume); Ryan ALMPulling backThere are signs that investors are getting more cautious ahead of year-end,much earlier than usual.8 billion64200.6%0.50.40.30.20.102008 2008’09 ’09Average stock trading volume*Yield on the 3-month Treasury billABREAST OFTHE MARKETDelta says SkyTeamhas funds for JALThe chief executive of Delta AirLines Inc. said the SkyTeam allianceof global carriers would be willingto invest more than its proposed$1.02 billion into struggling JapanAirlines Corp. as it tries to forge atrans-Pacific partnership.The final proposed investmentinto JAL by the nine-airlineSkyTeam alliance could be “greaterthan what we’ve stated” thus far, RichardAnderson said in an interviewFriday.“When you get that value, it canbe financeable. You create a lotmore value, and together partiescan figure out how to monetize thatvalue,” Mr. Anderson said.Atlanta-based Delta and itsSkyTeam partners are trying to persuadethe Japanese carrier to defectfrom the rival Oneworld alliance ofairlines to expand their share of thelucrative travel markets in Japanand Asia.AMR Corp.’s American Airlines,a member of Oneworld, has said itand private-equity partner TPG alsoare willing to inject an undisclosedamount of money into JAL, which isundergoing a restructuring afterseveral quarters of losses.Delta, the world’s largest carrierby traffic, said last week it was preparedto inject $500 million intoJAL from SkyTeam in addition to a$300 million revenue guarantee,$200 million in asset-backed fundingand $20 million or more in transitioncosts if JAL agrees to switchto SkyTeam.The restructuring of JAL is seenas the first big test of the new Japanesegovernment’s willingness totake a hard line with “zombie” companiesweighed down by billions ofdollars in debt. Since the DemocraticParty of Japan took powertwo months ago, it has focused onrestructuring JAL, which is boggeddown by over one trillion yen($11.24 billion) in net debt and legacypension costs.Both Delta and American see thismove as an opportunity to invest inJAL, a former flag carrier that haslong been protected by the state.Mr. Anderson said that neitherDelta nor its SkyTeam partners areinterested in a board seat or managementrepresentation at JAL. “Wedon’t need to manage anybody. Wedon’t want to and don’t expect to,’’he said.The Delta CEO said SkyTeam wasunlikely to link up with a private-equitygroup as it tries to woo JAL.“We have had many inquiries fromother third parties that would be interested,”said Mr. Anderson. Nonetheless,he added, “we’re focused ona SkyTeam strategic investment.”The Enterprise Turnaround InitiativeCorp., the government-ledbody that is leading JAL’s rehabilitationefforts, is expected to completeits due diligence in January.Mr. Anderson said Friday thatDelta would be willing to step in toaid JAL even before this process infinished. “We are ready, willing andable to participate at the righttime,” he added.BY MARIKO SANCHANTAAND MIKE ESTERLBy Robert Lee HotzResearchers powered up theLarge Hadron Collider—a $6 billionparticle accelerator nearGeneva—on Friday. The atomsmasher is so large that a brief statusreport lists 2,900 authors, socomplex that scientists in 34 countrieshave readied 100,000 computersto process itsdata, and so fragilethat a birddropping a breadcrust can short-circuit its power supply—asoccurred earlier this month.Far from trouble-free, the protonacceleratoris resumingoperationsaftera catastrophic breakdown in 2008thattriggeredayearofrepairsandrecriminations.Its large researchteams operate on such an elaboratescalethatprojectmanagementhasbecomeone of science’s biggest challenges.Around the world, scientists arecuttingacrossboundariesofplace,organizationand technical specialty toconduct ever more ambitious experiments.Inspired by such cooperativeenterprises as Linux and Wikipedia,they are encouraging creative collaborationsthrough networks of blogs,wikis, shared databases and crowdsourcing.Once a mostly solitary endeavor,science in the 21st century has becomea team sport. Research collaborationsare larger, more common,more widely cited and more influentialthan ever, management studiesshow. Measured by the number of authorson a published paper, researchteams have grownsteadily in size andnumber every year since World WarII.To gauge the rise of team science,management experts at NorthwesternUniversity recently analyzed2.1 million U.S. patents filedsince 1975 and all of the 19.9 millionresearch papers archived in the Institutefor Scientific Information database.“We looked at the recordeduniverse of all published papersacross all fields, and we found thatall fields were moving heavily towardteamwork,” says Northwesternbusiness sociologist Brian Uzzi.As research projects grow morecomplicated, management becomesa variable in every experiment. “Youcan’t do it alone,” says research managementanalyst Maria Binz-Scharfat City College of New York. “Thequestion is how you put it all together.”The key is bringing the people togetherin the first place, which hassped technological advancementsthat often benefited the rest of us.The ease of global business and socialnetworking today owes much to theWorld Wide Web, which was designedtoaidinformation-sharing betweenscientists. It was invented atthe European Organization for NuclearResearch (CERN), the home ofthe Large Hadron Collider.New online science managementexperiments are under way. Lastyear, the National Science Foundationstarted a $50 million project tomap all plant biology research, fromthe level of molecules to organisms toentire ecosystems, so scientists canswoop through shared data as if theywere using Google Earth. Lastmonth,U.S. computer experts launched a $12million federal project to create a nationalbiomedical network called VI-VOweb to encourage collaborations.Scientists are experimenting withthe new technology of teamworkeveninmathematics,whereresearcherscustomarily work alone.Last January, British mathematicianTimothy Gowers invited volunteersto work on a problem in combinatorialresearch called the densityHales-Jewett theorem, which heposted at his Polymath Project blog.By brain-storming together online,two dozen volunteers solved theproblem in 37 days. “This way of doingresearch led to our finding theproof much more quickly than otherwise,”says Dr. Gowers at CambridgeUniversity.Other scientists team up out offrustration. Biology students createdan online collaboration called Open-Wetware to share technical tipsabout cell lines, enzymes, protocolsand screening assays. “This stuff isnever published,” says Sriram Kosuriat the Harvard University Institute ofGenetics, who was among its organizers.“We wanted to get this informationinto the open.”Since 2005, the project has growninto an online collaborative of 7,000registered users on five continentsand 65,000 Web pages—all with littleor no direct management. “Everyoneuses it for their own purposes and itgrows organically,” says Dr. Kosuri.In that spirit, paleontologistMichael Taylor at the University CollegeLondon recently set up the OpenDinosaurProject, encouraging volunteersto create an online database ofdinosaur bones from collectionsworld-wide. “The whole nature of thescientific engagement is changingdramatically and quickly,” Dr. Taylorsays.Bymanymeasures, theLarge HadronCollider is the largest machine inthe world. It is designed to smash togetherproton beams to test ultimatetheories of matter. Its science teams,drawing on independentresearchers,resources and funds from 150 universitiesand dozens of governmentagencies, alreadytranscend the physicsof conventional management.Strictly speaking, no one is incharge.Consider Tejinder Virdee, who occupiesthe top spot in the organizationalchart of the collider’s CompactMuon Solenoid detector—an intricate12,500-ton device the size of amedieval cathedral. At least 3,600people from 183 institutes in 38 countriesare involved. Ordinarily, Dr.Virdee might exercise considerableexecutive authority. Instead, he carriesthe misleading title of “spokesperson.”He was elected by researchersto negotiate with other groups ontheir behalf.He has no power to order or insist,only to cajole and persuade. “Icannot direct anybody to do anythingthat they do not want to do,”Dr. Virdee says. “All decision-makingis by consensus.” Yet, he is moreor less the boss—at least of this component.All around the collider, researchgroupsorganizedthemselvesindemocraticcooperatives, arranged in ananti-hierarchy. All deliberations areopen—and exhaustive. Everyone getstheir say no matter how long it takes.“It is bottom-up and not top-down,”says Markus Nordberg, who is the resourcecoordinator—essentially thechief financial officer—for the collider’sATLASdetector.TheATLASdetectorweighsasmuchastheEiffelTowerand is among the largest collaborationsever attempted in the physicalsciences.“None of them can do the researchwithout each other,” says BarbaraGray, a management analyst at PennsylvaniaStateUniversity.“Noone canplay with the Large Hadron Colliderunless they all play together.”In one sign of trust, the scientistswho designed the systems relied ontechnologies that did not yet exist,delaying key decisions as long aspracticable in the expectation someonewould invent a way out of theproblem. “There is enough confidencein the community that thetechnical problems will be solved atthe last possible affordable moment,”says Dr. Nordberg. “That isnot the way industry works.”If all performs as planned, researchteams will equally share thedata and the credit.For all their skill, the scientistsstarting up the Large Hadron Colliderhave encountered any numberof operational glitches this yearand, perhaps, one unique obstacle.The accelerator is expected to unleashforces so fundamental—evena black hole, some fear—that a fewphysicists fret the universe may besabotaging the project to protect itself.See a video on the Large HadronCollider and scientific partnership,at WSJ.com/ScienceJournal. EmailRobert Lee Hotz at sciencejournal@wsj.com.Researchers ready the Large Hadron Collider, which physicists hope will reveal the forces that shaped the universe.SCIENCEJOURNALScientists treat experiments as team sportMassive collider—a global collaboration—has a bumpy start, but sometimes the work of crowds yields wisdomSCIENCECERNvEnjoy The Wall Street Journal Asiaat these fine hotels...To Participate in the Executive Dining Program, please email to: philip.owens@dowjones.com.Executive Dining features some of theleading hotel restaurants in Asia.For more information about this program,please contact Mr. Philip Owens atTel: 2831-2570 | Fax: 2893-5090,or visit www.wsj-asia.com to subscribe.14 THE WALL STREET JOURNAL. Monday, November 23, 2009Monday, November 23, 2009 THE WALL STREET JOURNAL. asia.WSJ.com&BUSINESSFINANCE.Hershey’s trustees backa bid for CadburyBUSINESS & FINANCE 29JAL’s travails cloud theoutlook of ANAHEARD ON THE STREET 40Investors dial back risk earlyCaution is driven by urge to protect big gains, changes to some fiscal years; Treasury yields go negativeSIGNS OF wariness are appearingin financial markets as investorsworry that the end of theyear could bring challenging tradingconditions.Last week saw a steep drop off inU.S. stock-market trading volumeand a surge in demandfor shorttermgovernmentdebt, indicationsthat investors and financial institutionsare growing cautious and retreatingfrom riskier bets.That defensive behavior is relativelycommon toward the end ofthe year. But this year it’s happeningearlier than usual. An uncommonconfluence of events is drivingthe shift. The biggest catalyst is areluctance among investors to takeon new aggressive bets and avoid alate-year blow-up in their portfolios.Many are sitting on big gains aftera 58% surge in the Dow Jones IndustrialAverage since early March andrecord returns from some corporatebonds.“People who have booked somesignificant gains…are looking totake risk levels down,” says BrianFagen, co-head of Americas liquidmarket sales at Barclays Capital.Banks looking to improve theircapital positions have been paddingtheir investment portfolios with U.S.Treasurys, driving up demand forgovernment debt. At the same time,investors are wary that a shift byWall Street brokerage houses to endtheir fiscal year on Dec. 31 insteadof Nov. 30 may make them less willingto take risk in the final fewweeks of the year.“There could be some odd thingshappening around the end of theyear,” Mr. Fagan says. Should therebe some unexpected news thatdrives the market higher or lower,“it could exacerbate the movements.”Beyond the calendar, there arefundamental reasons for the heightenedcaution. After the rebound inthe stock and bond markets thisyear, there is considerable uncertaintyabout the outlook for 2010.In the bond market, investors areunsure about how the Federal Reservewill wind down its support ofthe mortgage-backed securitiesmarket and the timing of an eventualincrease in interest rates.Stock investors are awaiting apickup in corporate revenue growththat is seen as needed to extendbetter-than-expected earnings thatthus far have been led by cost cutting.Many investors are concernedabout ripples from a continued risein unemployment, and expectationsPlease turn to page 32BY TOM LAURICELLAAND JOANNA SLATER*Weekly data, NYSE listed sharesSources: WSJ Market Data Group (volume); Ryan ALMPulling backThere are signs that investors are getting more cautious ahead of year-end,much earlier than usual.8 billion64200.6%0.50.40.30.20.102008 2008’09 ’09Average stock trading volume*Yield on the 3-month Treasury billABREAST OFTHE MARKETDelta says SkyTeamhas funds for JALThe chief executive of Delta AirLines Inc. said the SkyTeam allianceof global carriers would be willingto invest more than its proposed$1.02 billion into struggling JapanAirlines Corp. as it tries to forge atrans-Pacific partnership.The final proposed investmentinto JAL by the nine-airlineSkyTeam alliance could be “greaterthan what we’ve stated” thus far, RichardAnderson said in an interviewFriday.“When you get that value, it canbe financeable. You create a lotmore value, and together partiescan figure out how to monetize thatvalue,” Mr. Anderson said.Atlanta-based Delta and itsSkyTeam partners are trying to persuadethe Japanese carrier to defectfrom the rival Oneworld alliance ofairlines to expand their share of thelucrative travel markets in Japanand Asia.AMR Corp.’s American Airlines,a member of Oneworld, has said itand private-equity partner TPG alsoare willing to inject an undisclosedamount of money into JAL, which isundergoing a restructuring afterseveral quarters of losses.Delta, the world’s largest carrierby traffic, said last week it was preparedto inject $500 million intoJAL from SkyTeam in addition to a$300 million revenue guarantee,$200 million in asset-backed fundingand $20 million or more in transitioncosts if JAL agrees to switchto SkyTeam.The restructuring of JAL is seenas the first big test of the new Japanesegovernment’s willingness totake a hard line with “zombie” companiesweighed down by billions ofdollars in debt. Since the DemocraticParty of Japan took powertwo months ago, it has focused onrestructuring JAL, which is boggeddown by over one trillion yen($11.24 billion) in net debt and legacypension costs.Both Delta and American see thismove as an opportunity to invest inJAL, a former flag carrier that haslong been protected by the state.Mr. Anderson said that neitherDelta nor its SkyTeam partners areinterested in a board seat or managementrepresentation at JAL. “Wedon’t need to manage anybody. Wedon’t want to and don’t expect to,’’he said.The Delta CEO said SkyTeam wasunlikely to link up with a private-equitygroup as it tries to woo JAL.“We have had many inquiries fromother third parties that would be interested,”said Mr. Anderson. Nonetheless,he added, “we’re focused ona SkyTeam strategic investment.”The Enterprise Turnaround InitiativeCorp., the government-ledbody that is leading JAL’s rehabilitationefforts, is expected to completeits due diligence in January.Mr. Anderson said Friday thatDelta would be willing to step in toaid JAL even before this process infinished. “We are ready, willing andable to participate at the righttime,” he added.BY MARIKO SANCHANTAAND MIKE ESTERL10 THE WALL STREET JOURNAL. Tuesday, January 5, 2010CAREER JOURNALRewards for extrawork come cheapWith raises scarce, managers get creativeFacing a deadline to deliversoftware to a customer, RockwellCollins Inc. managerJenny Miller persuaded 20 engineersto work Thanksgiving weekend.Her only lures were free lunchand $100 gift cards.Ms. Miller’s feat is part of a dailystruggle for managers now: figuringout how to squeeze more work fromlean, recession-battered staffs.As the U.S. economy tentativelyrecovers, chief executives are tryingto ramp up growth, but not hiring.The economy grew 2.2% in the thirdquarter and layoffs have slowed, butcompanies continue to shed jobs.And employers are hiring at theirslowest pace since the Bureau of LaborStatistics began tracking in2000.Managers can’t rely on the traditionalcarrots of raises or promotions.Employers plan meager 2.8%raises in 2010, after 2% bumps in2009, according to consulting firmTowers Watson. And the static jobmarket, which includes older workerswho have delayed retirement aswell as younger employees unable tofind better opportunities elsewhere,hasn’t created many openings formanagers to award promotions.At companies from Rockwell Collinsto Ford Motor Co. and Sanofi-Aventis SA, managers are reachingdeep into their toolbox to coax moreproductivity from salaried, nonovertimestaffers. They’re unleashing abevy of cheap rewards, such aspraise, thank-you notes and giftcards. They’re also scrutinizing employees’duties to nix unnecessarytasks, freeing staffers for higher-impactwork.Rockwell Collins laid off 8% of itswork force, or 1,600 people, lastJanuary. As business has stabilized,the aerospace electronics company,based in Cedar Rapids, Iowa, hasstarted to hire again, but slowly.Ms. Miller manages 170 engineersin the commercial systems engineeringunit, which makes computersystems for flight decks. Shesays on a per-person basis, her employees’workload has increased byabout 15% over the past year.The challenge is “stretching mein ways I never had to” before, shesays.Some employees balk at workinglonger hours without extra pay. Ms.Miller has been able to give giftcards but not raises; Rockwell Collinshad a salary freeze in effect untilDecember. Ms. Miller tries to assureemployees the extra hours aretemporary and tells them “when themarket turns around we’ll be betterpositioned because of the effort,”she says.Many engineers had been workinglong hours in November to makethe Dec. 1 deadline to finish testingflight-deck software, but Ms. Millerstill feared they wouldn’t finish ontime.The company decided againstwork on Thanksgiving Day itself, butMs. Miller emailed the departmentseeking volunteers to work Friday—acompany holiday—Saturdayor Sunday. About 20 people signedup, despite not being paid overtimeor getting compensatory days off.They met the deadline, and got the$100 gift cards.Without the ability to give raisesover the past 12 months, SteveNieuwsma, a Rockwell Collins divisionvice president, has given outtwice as many gift cards as lastyear, ranging from $25 to $500. “It’snot so much the money,” he says.But he believes employees appreciate“the fact that someone walkedup to them and said, ‘Thank you,you did a good job.”’Cheap recognition is a well-utilizedcurrency at many companies.Craig Chiulli, who supervises 90managers and salespeople in Ohiofor Sanofi-Aventis, emails employeesto recognize even small accomplishments,and copies higher-ups.After the drug-maker shed 10% ofits U.S. sales force this year, his employeesare handling more work perperson, he says.He recalls emailing one salesmanwho had landed a meeting with apotential new customer, telling himhow much his “extra efforts” wereappreciated.He copied his vice president andplans to introduce the two in January.Managers are also scrutinizingemployees’ tasks to prioritize higher-impactwork. At Ford’s Americasdivision, President Mark Fieldsasked his deputies in early 2009 toscour employees’ routines for “discretionarywork.” They surveyed departmentsabout their use of internalreports, and killed or reducedunder-utilized ones. For instance, a“report card” on Ford’s marketshare, costs and quality performancenow goes out quarterly insteadof monthly.With staffs lean, “there’s moreprioritizing—you can’t stuff 10pounds of flour in a five-poundsack,” Mr. Fields says.BY DANA MATTIOLIFord’s Mark Fields, shown in Los Angeles in December, had his deputies survey departments about their use of internalreports so they could kill or reduce under-utilized ones.Some managers who can’t give raises give gift cards to recognize extra efforts.CAREEROPPORTUNITIESCAREERS Tuesday, January 5, 2010THE WALL STREET JOURNAL.MARKETSRecovery hints:rhodium, trainsAnalysts track obscure barometers of growthAs stock and bond investors debatewhether the U.S. economic recoveryhas legs, some analysts arelooking beyond the standard flurryof data for evidence.They are focused on demand forrelatively obscure metals and fuels,such as rhodium—which is used incar parts and is considered by someas a barometer of auto demand—aswell as diesel fuel. Prices of both arereaching new highs, leading some tobelieve a real recovery is takinghold.Unlike gold and platinum, specialtymetals like rhodium aren’ttraded on commodity exchanges,making it hard for hedge funds andother investors to buy them as speculativebets. Prices are set by producersand users of the metal, linkingthem more closely to realdemand.As of Friday, rhodium fetched$2,360 a troy ounce, up 60% sincemid-October.“We’ll keep watching rhodium.These smaller metals are very sensitiveto changes in demand, makingthem a good indicator of what ishappening out there,” said TheresaGusman, head of commodities at DBAdvisors, the asset-managementarm of Deutsche Bank AG.About 80% of the metal is usedby auto makers in catalytic converters.Rhodium’s strength bodes wellfor the U.S. auto and auto-relatedindustry, which constitutes 4% ofthe country’s gross domestic productand employs 10% of the totalwork force.Many bulk commodities alsohave gotten pricier recently. Pricesof iron ore, one of the main materialsused to produce steel, rose lastWednesday to the highest level of2009 in China, the biggest buyer.Coal prices jumped 6.4% at the NewYork Mercantile Exchange in December.Other investors are looking atrail traffic in North America, whichshowed a 4.6% rise in December, thefirst year-to-year increase afterslumping for more than a year, accordingto Dahlman Rose & Co.Rail carloads reached 714,015units, up from a year ago but still14% lower than in the same week in2007.An increase in rail volume is aprecursor of rising economic activity,as manufacturers, constructioncompanies and car dealers areamong the top railway shippers. Analystsare looking to see whetherthe increases continue.To be sure, the relative illiquidityof markets for specialty commoditiescan cause swings in prices.Rhodium prices, for example, tumbled20% in early December afternearly doubling in two months. Still,the metal recouped most of thoselosses recently.Energy use, which powers economicgrowth, also has shown signsof life.Prices of “bunker fuel” set newhighs in recent days, pointing toburgeoning demand from industrialusers. Bunker fuel, also known asresidual oil, is the cheapest liquidfuel and not traded as a financial assetlike crude oil or natural gas. Becauseof its very high sulfur content,residual oil is used only by powerplants and large ships that are ableto process it.Residual fuel is priced as a discountto the price of Brent crude oil,a market benchmark, and the spreadhas recently narrowed to $3.50 abarrel, the lowest in at least threeyears, according to Platts, a subsidiaryof McGraw-Hill Cos.Barclays Capital analysts found asimilar cause for optimism in themarket for diesel fuel. China, Indiaand Jsel dU.S. ddeclinDiand isand t“Tcertedbodestip bafirstlystsBY CAROLYN CUIRail volume is one way to gauge economic activity. Above, a Burlington Northern Santa FChina opens more bonds to insurance compSHANGHAI—China’sinsuranceregulator said insurance companiescan now buy triple-A-rated nonguaranteedbonds on the domestic interbankmarket, broadening the cashrichfirms’ investment channels andcontinuing the development of thecountry’s relatively young corporatedebt market.The move also will help financeChina’s four trillion yuan ($585.8 billion)economic stimulus, analystssaid. China has gradually been looseningrestrictions on insurance companies’investment in corporatebonds in recent years.In October, the China InsuranceRegulatory Commission raised theupper limit of insurers’ investmentin corporate bonds to 40% of theirtotal assets from 30%, and allowedinsurers to buy corporate bonds issuedin Hong Kong by large stateownedenterprises and domesticbusinesses listed on the city’s stockexchange with at least a Triple-Brating.The widening investment channelswill help satisfy an increasingdemand for corporate bonds by domesticinsurers, whose premium incomehas been rising robustly.China’s insurance companies collected1.022 trillion yuan in premiumsfrom January through Novemberlast year, 11.7% more than in thesame period of 2008, the state-runXinhua news agency reported in December.The move to broaden domesticinsurers’ access to the corporatebond market could help them raisetheir investment returns becausebonds that aren’t guaranteed typicallycarry higher yields than doesgovernment debt, said Chen Xumin,deputy director of the trading departmentof midsize Nanchong CommercialBank.An insurer’s investment in a nonguaranteedbond can’t exceed 20%of the bond issuer’s net assets, theinsurance regulator said in a statementon its Web site on Friday.Nonguaranteed bonds are debtwhose principal and interest aren’tguaranteed by another companyother than the issuer itself. In China,these securities consist mainly ofcorporate medium-term notes supervisedby the country’s central bank.Outstanding medium-term notesin China, with a typical maturity ofthree to five years, totaled 806.8 billionyuan at the end of November,accounting for 34.7% of the totalcorporate debt traded on the interbankmarket, according to the latestdata on the official Chinabond Website.China also has been opening itsnascent corporate bond marketwiderinves2009startetradebondsmontBankChinanomiinterbItcommprovawas ubankto selPhilippines, Indonesia and Vietnam prepare $7 billionMANILA—The Philippines, Indonesiaand Vietnam hope to sell asmuch as a combined $7 billion ofnew debt in the coming weeks andbe the first sovereign offerings outof Asia to hit the international marketsince October.“This is going to be a very busymonth for sovereign issuers,” said asyndicate banker in Hong Kong.The Philippines, Asia’s most activeoffshore sovereign issuer, hasopened the market for bonds in socalledG3 currencies—U.S. dollars,euros or yen—for Asian borrowerseach year for the past few years.This year, however, it will have thecompany of similarly rated peers, aprospect that could push up borrowingcosts as the three issuers vie forinvestors.But with investors flush withcash and looking to put the moneyto work quickly in the new year, thesovereigns will likely find willingbuyers, with little risk of a spike inyields. What’s more, the deals havebeen well-publicized, eliminatingthe element of surprise that canhurt bond prices in the secondarymarket, which serve as a guide forpricing new issues.“I don’t think there’s a great dealof anxiety about competition,’ ‘ saidTim Condon, head of research forAsia at ING.The Philippines, the first in linefrom Asia, is looking to raise asmuch as $2 billion in internationalbonds this week. While the detailsaren’t final, the offering could includeeuro-denominated paper,given that it has €600 million ($859million) in bonds maturing in February.It has sought to cap its commercialoffshore borrowing at $2 billionfor this year, but many in the marketsay it’s possible that the expectedJanuary fund raising won’tbe its last of this year.Vietnam has hired Barclays Capital,Citigroup and Deutsche Bankto sell as much as $1 billion inbonds with maturity of 10 years orlonger, said a person familiar withthe deal. The offering could emergenext week.Indonesia has hired BarclaysCapital, Citigroup and Credit Suisseto sell between $3 billion and $4billion in bonds that could come inmore than one part, said a personfamiliar with this deal. The likelymaturities are 10 years and 30 yearsand will be denominated in a mix ofeuros and dollars, the person said.Malaysia is also said to be lookingtmarkyearsWsorbeasilythe AbackThdeficianothwouldraisesernmableplans“Thowthe mCondBY DITAS LOPEZ‘This is going to be a verybusy month for sovereignissuers,’ said a syndicatebanker in Hong Kong.

21FINANCETo study finance you need data on adaily basis, so you can participate inthe pace and dynamics of the markets.The Journal offers financial quotes andstatistics from across Asia. And withcoverage of the political, economicand social changes that impact marketsminute-by-minute, you can dig into thestories behind the headlines.INFORMATION TECHNOLOGYWe live in the Information Age, andto succeed in college and beyondrequires keeping current on thetrends in technology. And becausetechnology touches every part of ourlives, The Journal covers it end-toend– from consumer and economicimpacts, to marketing, law, finance,telecommunications and more.INTERNATIONAL BUSINESSGlobal business information andperspectives are more critical than everto every business students, businessleader and future business leader. TheJournal covers the world of business,including multi-national corporations,the international operations of domesticcompanies, the world stock markets andmore.2 THE WALL STREET JOURNAL. Wednesday, February 10, 2010PAGE TWOONLINE TODAYMost read in Asia1. Opinion Asia: Hong Kong andFalun Gong2. Gmail, Too, Seeks to RivalFacebook3. CIC Offers a Glimpse ofHoldings4. Beijing Touts Bust of HackerRing5. A Crisis Made in JapanMost emailed in Asia1. A Crisis Made in Japan2. Canada Fears Housing Bubble3. How to Succeed in the Age ofGoing Solo4. Singapore Approves Casino5. CIC Offers a Glimpse ofHoldingsDigitsblogs.wsj.com/digitsAdd another name tothe list of converts tolocation-based ads:Loopt, a companythat until now isbetter known forhelping people findtheir friends.Continuing coverageFollow the latest newsfrom across India atindia.wsj.com.Health Blogblogs.wsj.com/healthTo expand itsbusiness in emergingmarkets, Pfizer isoffering a card thatpatients can presentat the pharmacy toget a discount ontheir drugs.i i iBusiness & Financen Australian miner Resourcehousenamed the wrong Chinesefirm when it announced a key 20-year supply deal over the weekend,a slip that created confusionand could damage the company’scredibility ahead of a planned IPOin Hong Kong. 17n Nissan reported a third-quarterprofit and raised its full-year outlook,helped by cost cuts andstronger sales in China. 17n Coca-Cola posted a 55% gain infourth-quarter profit amid strongsoda sales in developing economiessuch as Brazil and India. 20n Optimism over a possible aiddeal for Greece buoyed U.S.shares. In Asia, property playshelped push up the Hong Kongmarket. 27n It appears the British poundhas problems of its own amid thedebate about the fate of Europe’scrisis-racked currency. 25n UBS reported its first quarterlyprofit in more than a year, but itsprivate-banking business continuedto hemorrhage wealthy clientsspooked by assaults on Swiss banksecrecy. 25n Singtel posted strong earnings,citing results from its Indonesianassociate and favorable foreignexchangerates. 20n Citigroup and Gazprom closeda small but pioneering deal inChina that could lay the foundationfor a bigger nationwide marketin carbon trading. 23n China’s auto sales more thandoubled to a monthly record of1.66 million vehicles in January.But auto executives don’t expectthe rapid growth to be sustainable.19n Japan’s Koito Industries said itfalsified safety-testing data forsome 150,000 airplane seats installedon about 1,000 Boeing andAirbus planes. 18n Macquarie Group said secondhalfprofit could potentially be10% higher than its first-half result,bringing guidance closer toanalysts’ expectations. 24n U.S. wholesale inventories fellin December, prompting analyststo suggest the economy may havegrown by more than estimated inthe fourth quarter. WSJ.comn Mongolia’s prime minister saidIPOs of state-owned mineral assetscould take more time as thegovernment upgrades the Mongolianstock exchange. 26n Vedanta Resources defendedits industrial and mining practicesin the Indian state of Orissa, rebuttinga report by Amnesty Internationalthat accused it of pollutionand displacing tribes. 21n NYSE Euronext said a plannedoverhaul of Europe’s trading rulescould reduce competitive heat. 24i i iWorld-Widen Iran said it began enrichingsome low-grade uranium for usein a medical-research reactor,brushing off fresh internationalthreats of economic sanctions. 8n Speculation that the leader ofthe Pakistan Taliban has diedfrom wounds sustained last monthin a U.S. missile strike intensifiedwith midranking Taliban fighterssaying Hakimullah Mehsud wasdead even though the militants’spokesman issued a fresh denial. 6n Aid groups in Pakistan neednearly $538 million over the nextsix months to help hundreds ofthousands of people displaced byarmy clashes against the Taliban,the U.N. said in a global appeal.n Bollywood clashed with localpolitics in Mumbai as backers of aright-wing party attacked cinemasto protest remarks by one of India’sbiggest stars. 3n China sentenced earthquake activistTan Zuoren to five years inprison, the government’s latestmove in an escalating campaign tostrangle dissent. 4n China said its water is farmore polluted and its industry isproducing more waste than previouslyrealized, in a study environmentalistswelcomed as a step towardgreater transparency. 4n Malaysia’s highest court threwout an opposition attempt to reclaimpolitical control of an importantstate, underscoring the judiciary’spivotal role indetermining the balance of powerin the country. 5n Afghanistan was hit by avalanchesalong a high mountainroad that buried hundreds of cars,left at least 28 people dead andsevered a key artery connectingKabul with the country’s north. 6n A senior U.N. envoy arrived inNorth Korea, the world body’shighest-level visit to the nation innearly six years.Sri Lankan President Mahinda Rajapaksa, returning Tuesday from a visit toRussia, waves as he arrives in Colombo. He dissolved parliament Tuesday,setting the stage for new elections a day after authorities arrested the leaderof the opposition, former army chief Gen. Sarath Fonseka, on charges heplotted to overthrow the government while running the army. Page 6.Associated PressWhat’s News—InsideIn Depth: No exit insight as Freddie,Fannie flail. 14-15Business & Finance:What CIC disclosuressay about strategy. 18Corporate News:MGM Mirage to shedNew Jersey casino. 19Heard on the Street:Yuan’s rise needs lessforeign rhetoric. 32THE WALL STREET JOURNAL ASIADow Jones Publishing Company (Asia)25/F, Central Plaza, 18 Harbour Road, Hong KongTel 852-2573 7121 Fax 852-2834 5291www.wsj-asia.comSUBSCRIPTIONS and Address Changes, pleasetelephone our local customer service hotline, HongKong/Taiwan: 852-2831 2555; Beijing: 86-10 6581 4090;Shanghai: 86-21 5836 8228; Indonesia: 62-21 344 1101;Japan: 81-3 6269-2760; Korea: 82-2 756 1695; Malaysia:60-3 2026 4061; Philippines: 63-2 848 5873; Singapore:65-6415 4000; Thailand: 66-2 652 0871. Or email:service@wsj-asia.comADVERTISING SALES worldwide through Dow JonesInternational. 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USPS 337-350ISSN 0377-9920Wednesday, February 10, 2010 THE WALL STREET JOURNAL. 31Dow Jones Industrial Average P/E: 16LAST: 10038.08 s 129.69, or 1.31%YEAR TO DATE: t 389.97, or 3.7%OVER 52 WEEKS s 2,149.20, or 27.2%*Price-to-earnings ratio for the Nasdaq 100 Note: Price-to-earnings ratios are for trailing 12 months Sources: WSJ Market Data Group; Birinyi Associates115001100010500100009500900013 20 27 4 11 18 24 31Dec.8 15 22 29Jan.5Feb.HighCloseLow50–daymoving averagetNasdaq Composite Index P/E: 20*LAST: 2147.40 s 21.35, or 1.00%YEAR TO DATE: t 121.75, or 5.4%OVER 52 WEEKS s 622.67, or 40.8%24002300220021002000190013 20 27 4 11 18 24 31Dec.8 15 22 29Jan.5Feb.S&P 500 Index P/E: 27LAST: 1068.04 s 11.30, or 1.07%YEAR TO DATE: t 47.06, or 4.2%OVER 52 WEEKS s 240.88, or 29.1%1200115011001050100095013 20 27 4 11 18 24 31Dec.8 15 22 29Jan.5Feb.DJIA component stocksVolume,Stock Symbol in millions Latest Points PercentageAT&T T 12.40 $25.29 0.31 1.23%Alcoa AA 18.40 13.34 0.28 2.14AmExpress AXP 5.00 37.47 0.68 1.85BankAm BAC 131.70 14.49 0.01 0.07Boeing BA 2.60 59.28 1.39 2.40Caterpillar CAT 8.20 53.70 2.92 5.75Chevron CVX 5.70 71.60 1.47 2.10CiscoSys CSCO 24.00 23.93 0.43 1.83CocaCola KO 8.40 54.68 2.03 3.85Disney DIS 5.00 29.84 0.36 1.22DuPont DD 3.00 32.86 0.67 2.08ExxonMobil XOM 18.40 65.29 0.94 1.46GenElec GE 40.20 15.66 0.06 0.38HewlettPk HPQ 6.60 48.49 0.90 1.89HomeDpt HD 7.50 28.84 0.25 0.87Intel INTC 26.70 19.71 0.36 1.86IBM IBM 2.60 123.67 1.79 1.47JPMorgChas JPM 21.80 38.33 0.63 1.67JohnsJohns JNJ 5.70 63.13 0.76 1.22KftFoods KFT 9.00 28.87 0.50 1.78McDonalds MCD 4.90 63.25 0.33 0.52Merck MRK 5.30 36.67 0.08 0.22Microsoft MSFT 24.80 28.06 0.34 1.23Pfizer PFE 27.40 17.94 0.10 0.56ProctGamb PG 4.30 61.68 0.67 1.093M MMM 1.60 79.02 1.49 1.92TravelersCos TRV 2.30 49.44 0.39 0.80UnitedTech UTX 2.20 66.64 1.24 1.89Verizon VZ 11.10 28.97 0.60 2.11WalMart WMT 4.20 53.39 0.46 0.87U.S. stocks: most active...Volume,CHANGEStock Symbol in millions Latest Points PercentageCitigroup C 281.1 $3.19 $0.04 1.27%SPDR S&P 500 SPY 152.5 107.34 1.45 1.37BankAm BAC 135.5 14.50 0.02 0.14SPDR FnclSelSct XLF 71.0 13.79 0.13 0.95iShrMSCIEmrgMkt EEM 56.2 38.00 1.17 3.18PwrShrs QQQ QQQQ 55.8 43.19 0.52 1.22DrxFinancBear 3x FAZ 48.9 21.25 –0.56 –2.57FordMotor F 43.3 11.13 0.16 1.44GenElec GE 41.5 15.62 0.02 0.13iShrRu2000 IWM 37.6 59.30 0.62 1.06CellThrp CTIC 36.1 0.79 0.15 23.42ProShrsUShrt S&P SDS 35.1 37.34 –1.12 –2.91ElectroArts ERTS 30.1 15.82 –1.67 –9.55Pfizer PFE 28.0 17.90 0.06 0.34Intel INTC 27.3 19.71 0.36 1.86Biggest gainers...AmComrclLine ACLI 338.7 $20.20 $4.04 25.00%TrubionPharm TRBN 38.6 3.85 0.70 22.22EncoreCap ECPG 164.5 17.25 2.59 17.67NtlBkGrc ADS NBG 4,687.0 3.99 0.57 16.67HarmanInt HAR 3,337.3 41.25 5.75 16.20...Biggest losersTrmrkWldwd TMRK 1,449.0 $6.52 -$1.27 -16.30%Voltaire VOLT 70.4 5.24 -0.88 -14.38ToreadorRescs TRGL 2,516.9 8.71 -1.45 -14.27Conns CONN 553.9 4.61 -0.74 -13.76DrxDlLtAmBear 3x LHB 26.6 54.02 -7.10 -11.62ADRs of Asian companies*52-WEEK Volume, CHANGEHigh Low Stock Symbol in OOOs Latest Points$11.69 $6.88 Taiwan Semi TSM 16,682.3 $9.63 0.02 0.21%15.95 8.65 China Unicom CHU 4,016.0 10.99 0.36 3.3991.97 56.79 Toyota Motor TM 2,661.6 74.85 2.00 2.7582.74 33.09 BHP Billiton BHP 2,488.6 71.31 3.41 5.0213.30 6.35 AU Optrncs AUO 2,327.8 11.23 0.40 3.698.19 4.18 Siliconware Prec Ind SPIL 1,314.1 6.21 0.08 1.314.24 1.65 Utd Microelectronics UMC 1,179.3 3.58 0.08 2.296.84 3.71 Mitsu UFJ Fnl MTU 994.7 5.13 0.04 0.7959.13 22.61 Infosys Tech INFY 961.5 52.88 1.76 3.4434.27 10.70 Aluminum Cp of China ACH 859.6 23.77 0.95 4.1659.22 40.20 China Mobile CHL 632.9 49.00 1.04 2.1718.20 6.85 Korea Elec Pwr KEP 341.4 16.19 0.17 1.0681.00 38.70 China Life Ins LFC 309.4 63.56 1.06 1.7021.78 11.30 KT Corp KT 304.9 20.03 0.04 0.2018.64 12.59 SK Telecom SKM 300.5 17.00 0.18 1.0735.59 15.64 Sony SNE 297.0 33.70 0.69 2.095.23 1.57 Adv Semi Engrg ASX 248.8 4.16 0.11 2.729.50 3.96 Nomura Hldgs NMR 244.2 7.23 0.08 1.12150.50 47.09 POSCO PKX 199.6 114.69 6.46 5.9794.00 46.45 China Petro & Chem SNP 192.9 75.36 1.50 2.0325.65 5.11 Yanzhou Coal Mining YZC 183.7 19.45 0.71 3.79135.92 63.94 PetroChina PTR 162.3 108.88 2.58 2.4337.23 20.72 Honda Motor HMC 157.7 34.50 0.69 2.047.74 2.00 Alumina AWC 145.9 5.64 0.22 4.0624.09 17.71 NTT NTT 127.8 22.14 0.18 0.8234.43 21.60 Huaneng Power Intl HNP 125.1 23.83 0.82 3.56171.59 75.59 CNOOC CEO 115.1 152.19 6.85 4.7143.95 21.23 Canon CAJ 110.6 39.61 0.74 1.9021.22 16.33 ChunghwaTel CHT@ 92.9 18.65 0.18 0.979.82 5.43 Telecom Corp of NZ NZT 90.1 8.00 0.11 1.39*Most active American depositary receipts tracked by Dow JonesSource: WSJ Market Data GroupGlobal government bondsLatest, month-ago and year-ago yields and spreads over or under U.S. Treasurys on benchmark two-yearand 10-year government bonds around the world. Data as of 11 a.m. ETCountry/Coupon Maturity, in years Yield Latest Previous Month ago Year ago Previous Month ago Year ago5.750% Australia 2 4.445% 365.8 364.2 352.0 183.3 4.425% 4.505% 2.852%4.500 10 5.467 188.4 190.1 192.5 137.0 5.488 5.759 4.3625.000 Austria 2 1.550 76.3 76.3 70.1 37.2 1.546 1.686 1.3913.900 10 3.655 7.2 10.9 -0.7 127.6 3.696 3.827 4.2682.000 Belgium 2 1.373 58.6 62.9 0.0 38.5 1.412 0.985 1.4043.750 10 3.706 12.3 14.9 -13.2 135.1 3.736 3.702 4.3431.500 Canada 2 1.254 46.7 47.7 33.0 16.2 1.260 1.315 1.1813.750 10 3.365 -21.8 -21.6 -23.5 8.6 3.371 3.599 3.0784.000 Denmark 2 1.784 99.7 98.4 108.6 149.1 1.767 2.071 2.5104.000 10 3.497 -8.6 -10.9 -18.4 81.5 3.478 3.650 3.8073.750 France 2 1.159 37.2 31.0 18.5 55.7 1.093 1.170 1.5763.500 10 3.491 -9.2 -9.0 -24.5 82.5 3.497 3.589 3.8171.250 Germany 2 1.018 23.1 22.3 27.5 42.4 1.006 1.260 1.4433.250 10 3.152 -43.1 -45.2 -44.8 40.4 3.135 3.386 3.3960.550 Hong Kong 2 0.646 -14.1 -13.2 -38.4 -39.0 0.651 0.601 0.6292.160 10 3.027 -55.6 -55.1 -85.1 -121.7 3.036 2.983 1.7755.000 Italy 2 1.782 99.5 109.2 48.0 119.4 1.875 1.465 2.2134.250 10 4.045 46.2 51.4 24.2 154.5 4.101 4.076 4.5370.200 Japan 2 0.165 -62.2 -62.3 -81.0 -58.1 0.160 0.175 0.4381.300 10 1.347 -223.6 -222.7 -246.5 -168.3 1.360 1.369 1.3092.500 Netherlands 2 1.099 31.2 28.9 -19.3 71.4 1.072 0.792 1.7333.500 10 3.488 -9.5 -10.3 -29.4 99.6 3.484 3.540 3.9883.200 Portugal 2 2.123 133.6 144.1 24.4 83.0 2.224 1.229 1.8494.750 10 4.602 101.9 121.8 17.9 144.8 4.805 4.013 4.4405.350 Spain 2 1.708 92.1 107.0 45.1 122.2 1.853 1.436 2.2414.000 10 4.079 49.6 55.0 14.0 140.8 4.137 3.974 4.4002.750 Switzerland 2 0.455 -33.2 -32.5 -35.1 -55.9 0.458 0.634 0.4602.250 10 1.944 -163.9 -164.3 -170.6 -79.5 1.944 2.128 2.1973.250 U.K. 2 1.196 40.9 47.4 28.6 64.8 1.257 1.271 1.6674.500 10 3.953 37.0 34.6 23.0 76.9 3.933 4.064 3.7610.875 U.S. 2 0.787 ... ... ... ... 0.783 0.985 1.0193.375 10 3.583 ... ... ... ... 3.587 3.834 2.992Source: Thomson ReutersKey money ratesLatest52 wks agoPrime ratesU.S. 3.25% 3.25%Canada 2.25 3.00Japan 1.475 1.475Britain 0.50 1.00ECB 1.00 2.00Switzerland 0.53 0.52Australia 3.75 3.25Hong Kong 5.25 n.a.LiborOne month 0.22844% 0.44688%Three month 0.25000 1.22188Six month 0.38875 1.68625One year 0.84625 1.98688Latest52 wks agoEuro LiborOne month 0.38438% 1.65875%Three month 0.59813 1.99250Six month 0.91938 2.07625One year 1.20000 2.18000HiborOne month 0.07000 0.19643%Three month 0.13000 0.79214Six month 0.24929 1.14786One year 0.54714 1.55000Asian dollarsOne month 0.2396% 0.46%Three month 0.2566 1.2180Six month 0.3890 1.7020One year 0.8460 1.9840OfferBidEurodollarsOne month 0.3000% 0.2000%Three month 0.3300 0.2300Six month 0.5500 0.3500One year 0.8500 0.5000Latest52 wks agoU.S. discount 0.50% 0.50%Fed-funds target 0.25 0.25Call money 2.00 2.00Overnight repurchase ratesU.S. 0.18% 0.28%U.K. (BBA) 0.510 0.850Euro zone 0.31 1.23Sources: WSJ Market Data Group; ReutersU.S. Treasury yield curveThe curve shows the yield to maturity of current bills, notes and bonds; all data as of 3 p.m. ET.1month(s)3 6 1years2 3 5 710 30maturity5%43210sOne year agosMondayTOTAL RETURNYield to Modified Month Quarter YearRyan Index maturity duration to-date to-date to-date 12-month30-year Treasury 4.523% 16.22 –0.11 % 2.32 % 2.32 % –9.71 %10-year Treasury 3.592 8.17 0.23 2.41 2.41 –1.717 Year Treasury 3.032 6.23 0.41 2.74 2.74 ...Five-year Treasury 2.263 4.68 0.48 2.13 2.13 2.95Ryan Index 2.580 6.69 0.24 2.00 2.00 0.203 Year Treasury 1.282 2.87 0.30 1.44 1.44 3.54Two-year Treasury 0.787 1.96 0.11 0.89 0.89 2.451 Year Treasury 0.295 0.93 0.01 0.21 0.21 1.26Six-month Treasury 0.173 0.50 ... 0.03 0.03 0.65Ryan Cash Index-a 0.152 0.44 ... 0.06 0.06 0.61Three-month bill 0.112 0.25 ... 0.01 0.01 0.38One-month bill 0.030 0.07 ... ... ... 0.14a-Performance of a cash investmentSource: Ryan ALMSCANNING THE GLOBETECHNOLOGYSeeking fortunesin China’s handsIPhone’s debut offers opportunities for app developersBy Juliet YeLess than a month after Apple Inc.’s official launch of itsiPhone in China, Internet companies big and small are racingto offer the nation’s hot new app.Winners so far include practical applications for gettingaround town and translating Chinese into English; games thatlet users mine gold for profit or fight the Soviets in an alternate-historyEurope; and even software for finding soul mates.But China presents unique challenges. IPhones there currentlylack WiFi wireless Internet capabilities. Language andcultural issues plague distribution. While China already has anestimated two million iPhones in circulation, the vast majorityare “jailbroken”—meaning they operate off the iPhone’s officialChina Unicom Ltd. 3G network—and are more likely todownload pirated apps.“We know perfectly well that Chinese market is huge andhas great potential. But when we release apps targeting usershere, we’re usually not able to get reasonable returns becauseof piracy,” said Shi Weixing, founder and chief executive of Chinesemobile application company 9thQ.The market for legitimate Chinese iPhone apps is small butsurging. Mr. Shi’s company estimates about $1 million worth oflegitimate iPhone apps have been sold so far this year, thoughthe market could reach $6 million by next year. By comparison,mobile advertising firm AdMob says about $200 millionin apps are sold overall through Apple’s store each month.“Once Wifi is allowed on future 3G iPhones and the price ofhandsets falls due to product life cycle, more subsidies or economiesof scale, we will see the iPhone market in China go mainstream,”said Frank Yu, chief operating officer for BeijingbasedShouji Mobile, which designs apps.Major Chinese Internet giants have entered the fray. TopWeb portal Sina.com offers apps that provide news updatesand lets users update their blogs. Tencent Holdings Ltd., theInternet company that runs the popular Chinese instant messagingsystem QQ, also offers QQ for iPhone users in and outsideChina. A number of English-language Western apps alsoare popular, including Electronic Arts Inc.’s Command & Conquergame and Quickoffice Inc.’s office software.Meanwhile, some Chinese developers have come up withapps that have proven popular outside the mainland. BeijingbasedColorme Info Tech Co. says it makes monthly revenueof 400,000 Chinese yuan, or $58,600, from Gold Miner, an English-languageprospecting game.“We have to consider what kinds of games are appealing tousers from the West and the East,” said Mao Guangcan, Colormechief executive. “Sometimes, games we developed forWestern users turn out to be bestsellers in app stores inChina.”Payment method poses a growth barrier. Apple’s App Storerequires a credit card issued by a Chinese bank, which is stillnot yet commonplace, said Shouji’s Mr. Yu.Right now, most of the apps and their instructions are inEnglish, with prices in U.S. dollars instead of Chinese yuan. Bycontrast, pirate app Web sites have detailed instructions in Chineseon how to download content from pirate servers. Applehas recently added more Chinese language instructions.“Localization is most important. Products should be asmuch in line with Chinese lifestyles as possible,” says Mr. Shi,who noted Texas Hold ’Em games likely wouldn’t go over well.HOROSCOPE—PAST,PRESENT, FUTUREDeveloper Rico Co.Price $18.99This app—the nameabove is a rough translation—takesthe guessworkout of personal relationships,allowing theuser to judge two people’scompatibility and determinetheir destinies basedon birth dates.POWERWORD 2.0PROFESSIONAL EDITIONDeveloper Beijing Kingsoft Software Co.Price $4.99An iPhone version of one of China’smost popular English translation softwarepackages, with the ability to translatewhole sentences.LRC PLAYERDeveloper Jacky MaPrice $1.99This Chinese-language music player offerslyrics and can search for them on the Internetwhen they’re not at first available.WORLDCARD MOBILECHINESE VERSIONDeveloper PenpowerTechnology Ltd.Price $19.99Description The software allowsan on-the-go businessperson tocapture and recognize businesscards and claims to recognizesimplified Chinese, traditionalChinese and English.Photos from A ple ComputerTuesday, November 17, 2009 THE WALL STREET JOURNAL. 11BUSINESS FINANCEDefaults slow amid a refinancing waveSome struggling companies are accessing the credit markets,avoiding having to file for bankruptcyThe bankruptcy boom is goingbust—for now.The financial crisis created oneof the worst periods in U.S. historyfor corporate bankruptcies, fellingthe likes of Circuit City Stores Inc.,General Motors Corp. and CITGroup Inc.Now corporate failures haveslowed, as companies once on theverge of default have found a newlife. These companies are now refinancingtheir balance sheets withnew debt, pushing out maturities onexisting loans or using distresseddebtexchanges to avoid a bankruptcyfiling.Speculative-grade companies—orthose with “junk” credit ratings—haveissued about $123 billionin new bonds this year, comparedwith roughly $48 billion in all oflast year, according to data providerDealogic. These debt offerings areon a record pace, and analysts haverevised their bleakest debt-defaultforecasts from the start of 2009.At the height of the credit crisisin January, Moody’s Investors Servicepredicted that as much as 16.4%of U.S. junk-rated companies wouldhave defaulted in the past 12months. Some analysts said the defaultrate might not peak until thefirst quarter of 2010.Now, Moody’s expects that U.S.default rate to peak at 13.6% thismonth and fall to 4.4% a year fromnow. Just three large publicly tradedcompanies filed for bankruptcycourtprotection in September andsix filed in October, down from 16 inMarch, according to data compiledby Lynn LoPucki, a University ofCalifornia, Los Angeles law professor.Despite the slowdown, therehave been signs in recent weeksthat corporate bankruptcies couldremain steady or even increase.There have been several high-profilefilings including Capmark Financialand CIT. Already five big companieshave filed in November.“Six months ago, no one thoughtthat many of these companies couldaccess the high-yield market. Butthe window has opened for now,”said Barclays Capital restructuringchief Mark Shapiro.It remains unclear “how long thewindow will stay open,” Mr. Shapirosaid, but “for now it’s helping a lotof companies avert restructuringsor bankruptcies that would haveotherwise occurred in the nextyear.”Indeed, distressed companieswere shut out of credit markets inthe winter as investors demandedyields on junk bonds that typicallyexceeded 20%. Now, average yieldsare closer to 10%, according to theMerrill Lynch U.S. High-Yield MasterII Index.The Federal Reserve has helpedopen up this market by keeping interestrates near zero. If the Fedpeels its recent layers of marketsupport, debt-laden companiescould find it more prohibitive to refinancetheir billions of dollars inlooming bond and loan maturities.These struggling companies wereeffectively saved by the government,which has poured cash into the financialmarkets, driving down theyields on safe securities. That hasforced investors to ramp up theirrisk in order to get a decent return.Individual investors, for example,have poured about $18 billion ofcash into high-yield bond funds thisyear, according to Lipper FMI. Thatis the most since 2002, according toBabson Capital.In April, for instance, auditorsraised doubts about whether BlockbusterInc. could avoid bankruptcycourt. But in October, the movierentalchain raised $675 millionfrom the sale of new bonds to reducelooming obligations to banks.Amid strong demand for the bonds,the company raised twice as muchas it had first sought.Other companies including casinooperators Harrah’s EntertainmentInc. and MGM Mirage, andhome builder Beazer Homes Inc.have tapped credit markets to refinanceexisting debt after months ofbankruptcy worries.Some have been able to “amendand extend” loans. Michaels StoresInc. pushed out a $1 billion loan maturityby three years to 2016. FordMotor Co., which averted governmentaid by grabbing $24 billion infinancing three years ago beforecredit markets collapsed, just askedits lenders to extend as much of its$11.5 billion revolving credit facilityas possible by two years to November2013.Still, many analysts worry thatthe refinancing wave amounts onlyto “kicking the can” down the road,without fundamentally solving companies’broken capital structures.Among weaker companies, about$1.4 trillion in bonds and loans willstill come due in the next five years,said Dominic DiNapoli, the chief operatingofficer of FTI Consulting, abusiness advisory firm.“It’s a staggering amount ofmoney,” said Michael Imber, whodoes restructuring work for financial-advisoryfirm Grant ThorntonLLP. He and other restructuring expertssaid many businesses will remainchallenged amid 10% unemploymentand still-fragile markets.“Nobody can forecast revenueright now. The consumer is still unsteady,”Mr. Imber said. “There isgoing to be a steady stream of problemsahead of us.”Despite increased access to themarket, most of the companies currentlyrefinancing are still deep injunk territory. Many appear on amonthly Moody’s watch list of companiesin risk of defaulting on theirdebt. Moody’s latest list—formerlycalled the “Bottom Rung”—flags 274companies rated B3 or lower thatcarry roughly $263 billion of ratedbank and bond debt. The companiesrepresent nearly 18% of all U.S. companiesMoody’s rates.In normal periods, high debt issuanceis a sign of economic robustness,as companies use new capitalto expand. But the current volumeof new debt “is nearly 100% refinancing.It’s not new issue in theclassic sense,” said Richard Banziger,a managing director at CitigroupInc., during a recent gatheringof the Turnaround ManagementAssociation. “From that perspective,it’s less healthy.”Investors are willing to flock tothese companies, though, and areproving amenable to distressed exchangeoffers. In these deals, bondholderstrade existing debt for newdebt maturing later, equity in a restructuredcompany, or both.YRC Worldwide Inc., a strugglingtrucking company, just askedbondholders holding about $537million in debt to exchange theirholdings for 95% equity in a reorganizedcompany. “We’re doing all ofthis out of court,” said Bill Zollars,YRC’s chairman and chief executive,in an interview.Mr. Zollars said the companywould seek other bankruptcy alternativesshould the exchange fail, but“we’re pretty confident that thiswill, in fact, get executed accordingto plan.” A person familiar with thesituation said enough bondholderswould likely agree to the deal.Such offers don’t always work.Energy Future Holdings Corp.—theTexas power company formerlyknown as TXU Corp. that was acquiredtwo years ago in a recordsettingbuyout by private-equityfirms Kohlberg Kravis Roberts &Co. and TPG—recently only garnered$357.5 million in a debt exchange.The company had aimed towipe out $3 billion in debt.Heading into next year, “workoutsstill will be a hot place to be,”said Diane Vazza, head of globalfixed-income research at Standard &Poor’s.BY MIKE SPECTORAND KATE HAYWOODA woman browses at a Park Ridge, Ill., Blockbuster last week. The video-rental chain has recently eased its bank obligations.Bloomberg NewsJ.P. Morgan nears a deal to buy the rest of CazenoveLONDON — J.P. Morgan Chase &Co. is closing in on a deal to buy outits U.K. joint-venture partner, thevenerable broker Cazenove Group,for a little less than £1 billion ($1.67billion), according to people familiarwith the matter.In the coming weeks, the twosides are expected to agree to a dealin which J.P. Morgan would buy the50% of the investment-banking partnershipit doesn’t own, the peoplesaid, though they cautioned a dealhasn’t been struck. The deal hasn’tgained approval from the necessaryboards and committees, say peopleclose to the matterJ.P. Morgan paid about £100 millionin 2004 for a 50% stake in theventure with Cazenove.J.P. Morgan Cazenove, run sincelast year by Chief Executive NaguibKheraj, former finance chief of BarclaysPLC, is a storied firm in theCity of London. Tracing its roots to1819, Cazenove became one of London’sleading stockbrokers in themid-1930s, according to its Website. In the 1980s, it played a keyrole in the U.K. government’s historicprivatization drive.The firm, famous for being theQueen’s broker, also has been thecorporate broker to a number of theU.K.’s biggest and most importantcompanies, helping them interfacewith investors. That has helped thejoint venture win coveted investment-bankingmandates here, advisingclients on merger and underwritingdeals and other matters.J.P. Morgan Cazenove hasworked on a number of marqueeU.K. deals this year, such as LloydsBanking Group PLC’s recent £13.5billion share sale.In the first nine months of thisyear, J.P. Morgan Cazenove rankedfirst in underwriting primary U.K.equity issuance, with $19.5 billion ofdeals to its credit and a 27% marketshare, according to its Web site.J.P. Morgan, which has emergedfrom the financial crisis relativelyunscathed, appears to be taking advantageof that strength to scoop upits U.K. affiliate. Cazenove’s partnershipwith J.P. Morgan, struck fiveyears ago, gave the U.S. bank theoption to buy the rest of the ventureby February 2010.It also carried anoption for Cazenove’s 1,500 ownersto force a full sale to J.P. Morgan.J.P. Morgan was long expectedto take full ownership of the venture;the question was when itwould do so.BY DANA CIMILLUCAAND SARA SCHAEFER MUÑOZ26 THE WALL STREET JOURNAL. Tuesday, November 17, 2009Thursday, January 28, 2010THE WALL STREET JOUWEALTHBlack Dragon banknote sells fChina’s currency has drawn thewrath of Western politicians, but aparticular one-yuan note receivedaltogether more welcome attentionat auction in Hong Kong thisweek.The rare bill—a Black Dragon,or “Ooi-Long,” note from1909—wowed collectors at apacked auction room in the LandmarkMandarin Oriental hotel, astwo determined collectors uppedthe winning bid to an exchangerate-defying990,000 Hong Kongdollars (about US$127,000).The sum paid by the new Taiwaneseowner is believed to be arecord for a Chinese banknote, accordingto Barnaby Faull of auctioneersSpink, who also says thatinterest in rare Chinese notes hasgrown rapidly in recent years.In all, nearly HK$11 million ofrare notes, coins, stamps andbonds were sold at the Spink auction.“The room was heaving,” Mr.Faull said. “In the last six months to ayear, the Chinese note market has takenoff. Today, [auctioneers] really want aChinese note to come up for sale.”The century-old Ooi-Long note featurestwo black dragons, said to signifythe prowess of the Chinese emperor. Itwas issued by the Qing dynasty Kwangsibank and printed in Japan with an originalrun of 100,000 notes . The notes wererecalled after China’s banking system wasrestructured in 1911, and only three examplesof the one-yuan bill are known to collectorstoday. The Ooi-Long note’s valueamong Chinto be higheexamples onese bank dthe currencsued by EuThe prevBY DUNCAN MAVINCalvhonHebeeanoLaura Santini/The Wall Street Journalexecutive with a car displaying the plate“AM 78,” which, observers suspect, refersto the Hong Kong dollar’s peg of 7.8 to oneU.S. dollar.Several years ago, the Wong family,which owns AMS Public Transport HoldingsLtd., a local minibus company, hadrepresentatives bid for plates that includedthe number “77,” the company’s tradingcode on the Hong Kong stock exchange.Vincent Wong, whose father started thecompany in the 1970s, says the plates helpdifferentiate the company’s green-toppedminibuses from competitors on the island.Feng Shui master Gladys Mak’s silverPorsche brandishes the phrase “FUNGSHUI.” Ms. Mak says the more conventionalspelling was taken so she substituted the“u” for an “e.” The plate identifies her withher business, helping clients orient objectsin their homes or work places to allow foroptimal energy, or qi.In this case, the plate’s advantage is alsoits drawback, Ms. Mak says, as police caneasily spot her car. While she doesn’t mindother drivers staring at her, she says unwantedattention is the reason her husbanddoesn’t like to drive her car.For some, a personalized plate serves asa token of love. One couple paid US$3,870for “XXEE.” The “XX” stands for “kiss,kiss,” while the “EE” refers to the nickname“eagle eyes” that Ricki Leung gave her boyfriend,Clem, for his ability to “noticethings too eAfter scoauction, Msto a nearbynew car. Atbetween aWSJ.coOnline todtransport oplates in 2Photos atreports at26 THE WALL STREET JOURNAL. Thursday, January 28, 2010CORPORATE NEWSSharp expands its TV color paletteTOKYO—While televisions havetransformed from bulky and boxy toslim and sleek over the last decade,one thing hasn’t changed. The basicsof displaying color on TVs stillderive from the same three fundamentalbuilding blocks: red, greenand blue.In what Sharp Corp. is calling a“revolutionary” breakthrough, thecompany says it has developed away to add a fourth primary color,yellow, to the mix. By doing so,Sharp says its new flagship televisions—hittingthe market in twomonths—will display more than atrillion colors, about 1,000 timesmore color than current models.At the Consumer ElectronicsShow in Las Vegas earlier thismonth, Sharp introduced the productwith banners that read “HelloYellow!”—though a companyspokeswoman said the signs weren’ta preview of its upcoming marketingcampaign.Competitors are quick to downplaySharp’s technology. They saymore colors don’t necessarily resultin better picture quality or improvedcolor accuracy. Sharp disagrees,saying it can now accuratelyreproduce colors difficult to captureon conventional liquid-crystal-displayTVs, such as the metallic goldof brass instruments and the emeraldblue of a tropical ocean.Selling a new TV technology canbe tricky. As displays have improved,TV makers are challengedwith trying to explain to consumersthe benefit of innovations thataren’t obvious to the naked eye. Inrecent years, LCD-TV makers haveincreased frame rates, or hertz, tosmooth out fast-moving images. Butthat’s been a harder sell than moreobvious improvements like a thinnerscreen.Color quality is also subjective,without an industry benchmark forcomparison. Some consumers preferTVs to render vivid colors eventhough they may not necessarilycapture the truest color.“This going to require some educationand demonstration or elsemost people will say ‘I don’t knowwhat more color does for me,’” saysPaul Semenza, a senior vice presidentat research firm DisplaySearch.With its television-market shareoutside of Japan sinking, Sharp istaking the unprecedented step of introducingthe new televisions in theU.S. and Europe before its launch inJapan, where it dominates the market.The sets, to be sold underSharp’s Aquos brand, will go on salein March in North America and Europe,and later this year in Japan.Outside of Japan, Sharp has lostits footing, struggling to keep pacewith the relentless price cuts of discountbrands like Vizio Inc. It hasalso given ground to market leaderSamsung Electronics Co., whichhas struck gold by creating a newsubcategory of TVs branded as LED-TVs, or ultrathin LCD televisions,named for the type of backlightsthey use.In North America, Sharp’s marketshare of flat-panel-TV shipmentsfell to 4.8% in the first three quartersof 2009 from 8.7% in 2007, accordingto research firm Display-Search. Sharp’s European marketshare fell to 3.1% from 4.8% in 2007,while its market share in Japan hasheld steady at 37.3%.“We think we can recoup someof the market share we lost withthis new technology,” Sharp PresidentMikio Katayama said at a recentmeeting with reporters.Sharp’s technological breakthroughstems from a new LCDpanel using four-color filters, addingyellow to the standard red, greenand blue, for each of the millions ofdots on the screen. It also uses animage processor to convert videoand allow its televisions to show imagesin colors beyond what a normalcamera can record.Samsung, the world’s biggesttelevision maker, said it has workedon adding yellow as a fourth primarycolor since 2004. However, ithas held off on adopting the TVtechnology because it didn’t createenough of an improvement to warrantan overhaul of its productionprocess.Hyun Suk Kim, a senior vicepresident of research and developmentat Samsung’s display business,said it has opted to focus on refiningits color accuracy instead of justwidening its range of colors becausea video camera can only capture a“limited amount of color.”The test for Sharp will bewhether it can charge more for thetechnology and avoid the marginkillingprice competition that droveit to post its first annual loss innearly 60 years in the fiscal yearended March 31, 2009. Sharp saysthe TVs, which incorporate the company’snew LCD-panel technologythat makes its screens brighterwhile draining less energy, willrange from $1,800 for 40-inch setsto $4,000 for a 60-inch size. Its currenthigh-end 40-inch model sellsfor $1,400, and its 60-inch modelsells for $3,000.While its marketing plans for thenew televisions aren’t finalized,Sharp says it doesn’t plan to sell thenew sets at mass retailers like Wal-Mart Stores Inc. It will instead lookto work closely with specialty electronicsshops such as Sixth AvenueElectronics and P.C. Richard & Son.BY DAISUKE WAKABAYASHISharp’s new-model televisions on display this month at the Consumer Electronics Show in Las Vegas.ReutersYahoo earnings rebound as ad business stabilizesYahoo Inc.’s advertising businessshowed further signs of stabilizingas the Internet company stemmedits revenue slide and swung to aprofit in its latest quarter.The results signal that an improvingadvertising climate is givingCarol Bartz, who joined Yahooas chief executive in January 2009,some breathing room as she takessteps to reenergize the company.Ms. Bartz had promised to reverseYahoo’s slump by focusing ona few core products, such as itshome page and Yahoo Mail. Lately,she has also been pushing to offerhigher quality ads.Yahoo’s search-advertising anddisplay-advertising businesses eachimproved from the company’s thirdquarter, but were down comparedwith the fourth quarter of 2008. Yahoo’ssearch-ad revenue declined15% from a year ago, compared witha 19% drop in the third quarter. Itsdisplay-advertising revenue fell 1%from a year ago, an improvementfrom the 8% third-quarter drop.The Sunnyvale, Calif., companyswung to a profit of $153 million, or11 cents a share, for the fourth quarterfrom a loss of $303 million, ayear earlier. In the 2008 fourthquarter, Yahoo took more than $500million in write-downs and chargesfrom layoffs and its internationalbusiness. Revenue declined 4% froma year ago to $1.73 billion, comparedwith a 12% sales drop in the thirdquarter.“The better news here is what’sgoing on in revenue,” said YahooChief Financial Officer TimothyMorse, who added that product enhancementslike better ad-matchingtechnologies are helping.Yahoo executives said they wereparticularly pleased with demandfor its display ads, or graphical bannerads. “We’re seeing advertisersreach farther into 2010 to book premiumYahoo sites and events,” saidMs. Bartz. “So we expect the positivemomentum to keep building.”Analysts and investors are continuingto scrutinize Yahoo’s Internetsearch business, which is seeingits market share get eaten up by MicrosoftCorp.’s Bing search engine.In December, Yahoo’s Internetsearch share declined to 17.3% ofU.S. Internet searches from 17.5% inNovember, according to ComScoreInc., while Microsoft’s rose to 10.7%from 10.3% in November.The company last year announceda search and search-advertisingagreement with Microsoftthat is pending regulatory approvaland is expected to close early thisyear. Under the deal, Yahoo willearn revenue from search ads soldusing Microsoft technology on itssite, saving the company overheadinstead of running its own Internetsearch business.Still, Yahoo can’t afford to let itsshare of search slip away as it facescompetition from Microsoft’s Bingservice, analysts say. “If they continueto lose search share, they’regoing to see slower [ad] revenuegrowth,” said John Aiken, an analystwith Majestic Research.Mr. Morse said Yahoo has noplans to give up on search and is expandingthe number of searchesdone through its system while continuingto make more money offeach search.Yahoo’s results signal a furtherrebound for the online advertisingmarket, which was hammered in therecession..Meanwhile, Yahoo Japan Corp.reported a 9% rise in group netprofit for the fiscal third quarterended in December, helped by revenuegrowth in its business-servicessegment.For the October-December period,its net profit climbed to 20.86billion Japanese yen ($232 million)from 19.13 billion yen a year earlier,thanks to sales growth boosted by ayear-end sales campaign on YahooShopping.Its operating profit for the threemonths also rose to 36.44 billionyen from 33.15 billion yen.For the fiscal year ending inMarch, the Tokyo-based Internetservicefirm affiliated with SoftbankCorp. and Yahoo said it expects netprofit to range from 80.97 billionyen to 82.47 billion yen.The firm’s earnings are based onJapanese accounting standards.BY JESSICA E. VASCELLAROMixed pictureSharp’s market share of theflat-panel-display TV market*’05 ’06 ’07 ’08 ’09010203040%JapanNorth AmericaEurope*Based on shipments †Through SeptemberSource: DisplaySearch

Global Knowledge. Asia Understanding.Edited in Asia for an Asian audience, The Wall Street Journal Asia draws on a vast global network of morethan 2,000 journalists reporting in 58 countries in a dozen languages, inspiring audiences with authoritative,differentiated and trusted content.Almar LatourEditor in Chief, Asia, The Wall Street JournalAlmar Latour is The Wall Street Journal’s senior editor in Asia and oversees The WallStreet Journal Asia print and online as well as the Journal’s online activities in China, Indiaand Japan. Previously, Mr. Latour was managing editor of The Wall Street Journal Online,where he led WSJ.com’s expanded coverage of business and finance as well as personalfinance, sports, travel and multimedia storytelling. Mr. Latour also served as bureau chieffor the technology group in New York and as deputy bureau chief, and was a staff reporter forThe Wall Street Journal in New York and for The Wall Street Journal Europe in London, Stockholm and Brussels.Peter SteinHong Kong Bureau ChiefAssociate Editor, The Wall Street Journal AsiaPeter Stein is Hong Kong bureau chief and also oversees coverage of Asian finance, marketsand banking. Mr. Stein also is associate editor of The Wall Street Journal Asia and theauthor of The View from Hong Kong, a column on finance in Asia. Mr. Stein previously wasmanaging editor of the Asian Journal and a senior reporter in Hong Kong and led a groupof reporters covering the transfer of Hong Kong from British to Chinese sovereignty. Hejoined the Journal in January 1989 as a copy editor for the Asian edition in Hong Kong.Mary E. KisselEditorial Page Editor, The Wall Street Journal AsiaMary Kissel is editor of The Wall Street Journal Asia’s editorial page, where she directsopinion coverage and contributes regularly to the global Journal’s signed and unsignedcommentary on Asia-Pacific. Her team has been recognized for outstanding human-rightsreporting by Amnesty International. Ms. Kissel joined the Journal in Hong Kong in 2004to write the Heard in Asia column, the Journal’s premier commentary on the financialmarkets. She is a regular guest on U.S. ABC Radio’s nationally syndicated John BatchelorShow and the Bill Bennett Show, and appears on Fox, CNN and RTHK. Ms. Kissel began her career at GoldmanSachs as a fixed-income research and capital-markets specialist in New York and London.Paul BeckettSouth Asia Bureau ChiefPaul Beckett leads the Journal’s coverage of South Asia including India, Pakistan andAfghanistan. The bureau won a 2008 Overseas Press Club award for its India coverage. Italso won awards from the Society of Publishers in Asia and the South Asian JournalistsAssociation for its coverage of the Mumbai terror attacks. Mr. Beckett also oversaw thelaunch of a new India home page for The Wall Street Journal Online, india.wsj.com. Hepreviously was London bureau chief, and joined The Wall Street Journal in New York in 1998 to cover banking.22 < The Wall Street Journal Asia | Content Guide

Yumiko OnoManaging Editor, jp.WSJ.comYumiko Ono led the December 2009 launch of jp.WSJ.com, the Journal’s Japanese-languagesubscription Web site. Previously, she oversaw the Journal’s coverage of Japan and SouthKorea from 2003 until 2009. She joined the Journal’s Tokyo bureau in 1986 and has sincecovered industries ranging from food to advertising to retail in Tokyo and New York. Ms.Ono’s projects have included a series of articles about how Japan’s long economic slumpaffected Japanese individuals and society.Andrew BrowneChina Editor, The Wall Street Journal and Dow Jones NewswiresAndrew Browne oversees China coverage for both The Wall Street Journal and Dow JonesNewswires. He was a member of a team of Journal reporters in Beijing that won the PulitzerPrize for International Reporting in 2007. He also received awards from the Society ofNewspaper Publishers in Asia in 2005 for his coverage of the Asian tsunami and in 2006 forhis stories on China’s health-care crisis. Mr. Browne joined The Wall Street Journal in 2004as its China economics correspondent.Mohammed HadiEditor, Heard on the StreetMohammed Hadi shapes the Asian edition of the Heard on the Street, the Journal’s dailytake on market movers and the trends others might overlook. He has covered stock markets,options trading, and the U.S. options industry from Singapore and New York. Before hisjournalism career began, he was a financial analyst at a hedge fund and boutique investmentbank in New York. Currently based in Hong Kong, Mr. Hadi joined Dow Jones in 2003.Li YuanManaging Editor, cn.WSJ.comAs managing editor of The Wall Street Journal’s online Chinese-language edition, Li Yuandraws on the editorial resources of Dow Jones’ global news network while addressing theneeds of local readers through the efforts of a dedicated bilingual team. Previously, Mr.Yuan covered the U.S. telecommunications industry for the Journal and wrote a column onthe Chinese perspective of the U.S. for WSJ.com. Before joining the Journal, she coveredpolitical events in Thailand, Laos and Afghanistan.>23

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