WSJA-280211-COMPLETE

VOL. XXXV NO. 1 25 * * Monday, February 28, 2011 ASIA As of 4 p.m. ET DJIA 12130.45 À 0.51% FTSE 100 6001.20 À 1.37% Nikkei 225 10526.76 À 0.71% Shanghai Comp. 2878.57g0.001% Hang Seng 23012.37 À 1.82% Sensex 17700.91 À 0.39% S&P/ASX 200 4836.53 À 0.57% asia.WSJ.com (India facsimile Vol. 2 No. 186) Australia:A$6.00(InclGST),Brunei:B$7.00,China:RM B25.00,Hong Kong:HK$18.00,India:Rs25.00,Indonesia:Rp18,000(InclPPN),Japan:Yen500(InclJCT),Korea:W on2,500, M alaysia:RM 6.00,Pakistan:Rs140.00,Philippines:Peso80.00,Singapore:S$4.00(InclGST),SriLanka:Slrs180(InclVAT),Taiw an:NT$60.00,Thailand:Baht50.00,Vietnam :US$2.50 KKDN PP 9315/10/2011 (026992) M ICA (P) NO.164/10/2010 SK.M ENPEN R.I.NO:01/SK/M ENPEN/SCJJ/1998 TGL.4 SEPT 1998 Libyan rebels take over city near capital TRIPOLI—Rebel groups ap- peared to have taken control of the area of Zawiya close to Tripoli, the Libyan capital, closing the circle on the re- gime of Moammar Gadhafi, a day after the United Nations Security Council unanimously imposed sanctions on the country. Also Sunday, officials of Arabian Gulf Oil Co., Libya’s largest oil producer and the only one based in the rebel- controlled eastern territory, said they expected to resume oil shipments later Sunday. It would be the first oil ex- ported from the rebel-held east in over a week. The rebels’ advances and the sanctions, which follow the government’s violent ef- forts to stem rising protests, increased pressure on Mr. Gadhafi to resign. Despite the heavy-handed crackdown against demonstrators, oppo- nents of the regime continued to hold key areas of the coun- try, though the movements appear to be fragmented, with little central control. The U.S. and U.K. also im- posed sanctions on Libya over the weekend, and U.S. Presi- dent Barack Obama said it is time for Col. Gadhafi to go. U.S. and European leaders successfully drew condemna- tion in the U.N. even from members typically leery of in- ternational sanctions, such as China. The Asian power for decades has held as a central premise of its foreign policy that governments shouldn’t interfere in the “internal af- fairs” of other countries. A permanent member of the Security Council, China has backed U.N. sanctions sev- eral other times in recent years, against North Korea and Iran, but those measures Please turn to page 6 BY MARGARET COKER AND JASON DEAN A policemen told a group gathered Sunday in Shanghai to move on. China deployed security in Shanghai and Beijing after anonymous online activists called for people to start a ‘Jasmine Revolution’ in China. Page 3 China takes steps to stop ‘Jasmine Revolution’ Wines featuring look-alike marsupials duke it out i i i Australia’s Yellow Tail sees common look in kangaroo, wallaby Animals adorn many a wine bottle in the U.S. Aard- varks, cockatoos, impalas and penguins all have helped make wine less intimidating to Americans, marketers say. But two big makers of so- called critter wines lately aren’t looking so warm and fuzzy. The producer of Yellow Tail, the U.S.’s best-selling im- ported wine, is suing the maker of Little Roo for trade- mark infringement. At issue: whether the kangaroo on Lit- tle Roo’s label is a knockoff of the wallaby on Yellow Tail’s. Wallabies and kangaroos are marsupials native to Aus- tralia. Wallabies tend to be smaller, and their coats brighter. But the cousins look a lot alike, especially when shrunk to fit on a wine label. Casella Wines Pty. Ltd., the Australian maker of Yellow Tail, says in papers filed in a New York federal court that the kangaroo on its competitor’s label is portrayed in profile, is leaping, and is “oriented [in] the same direction” as the yellow-footed rock wallaby on Yel- low Tail bottles. Wallabies, Casella Wines contends, are “indistinguishable to most people” from kangaroos. “It’s hard enough for con- sumers to make choices, let alone to be confused when they go into a store with a particular wine in mind,” says John Casella, managing direc- tor of Casella Wines. The Wine Group LLC, which makes Little Roo and is the second-largest wine sup- plier in the U.S. after E.&J. Gallo Winery, says Casella Wines is jumping to conclu- sions. The San Fran- cisco company “de- nies that the Australian wallaby is interchangeably re- ferred to as a kanga- roo,” it said in a De- cember court filing. Dozens of species of marsupials live in Australia, and at least 10 different Australian wines feature a kangaroo or a wallaby. Even many Aussies can’t tell the difference be- tween the two, says James Please turn to page 16 BY DAVID KESMODEL A wallaby Agence France-Presse/Getty Images Dollar’s ripple effect Millions who work and send money to their home countries have been hit by the decline in value of the U.S. currency. Page 14 Heard on the Street How Middle East turmoil and volatile oil prices can lead to uncertain times for China’s Sinopec. Page 34 China to lower growth target BEIJING—Chinese Premier Wen Jiabao said Beijing is de- termined to slow the growth of its economy to an average of 7% a year over the next five years to avoid unwelcome in- flation, while much of the de- veloped world is struggling to quicken the pace of expan- sion. The Chinese economy has grown 11.1% on average be- tween 2006 and 2010, when the previous five-year plan set a growth target of 7.5%. The last time China set a growth rate as low as 7% was in 2001, when China was re- covering from the Asian fi- nancial crisis. Still, between 2001 and 2005, China’s gross domestic product grew, on av- erage, 9.8%, according to J.P. Morgan. “We’ll never seek eco- nomic growth rate and big size at the price of the envi- ronment,” Mr. Wen was re- ported as saying. “That would result in unsustainable growth featuring industrial overcapacity and intensive re- source consumption.” Premier Wen made his comments Sunday during an online chat with unnamed Chinese “netizens,” reported by China’s state-run news ser- vice, Xinhua, in the run-up to the formal release of the next five-year plan at the annual meeting of its National Peo- ple’s Congress starting March 5. Chinese economists cau- Please turn to page 16 BY BOB DAVIS dingbat Tunisia’s prime minister resigns ........................................... 5 dingbat Iraq pressures ministers following protests .................... 6 dingbat Bahrain opposition rhetoric escalates ........................................ 7 2 THE WALL STREET JOURNAL. Monday, February 28, 2011 THE WALL STREET JOURNAL ASIA Dow Jones Publishing Company (Asia) 25/F, Central Plaza, 18 Harbour Road, Hong Kong Tel 852-2573 7121 Fax 852-2834 5291 www.wsj-asia.com SUBSCRIPTIONS and Address Changes, please telephone our local customer service hotline, Hong Kong/Taiwan: 852-2831 2555; Beijing: 86-10 6581 4090; Shanghai: 86-21 5836 8228; Indonesia: 62-21 527 7592; Japan: 81-3 6269-2760; Korea: 82-2 756 1695; Malaysia: 60-3 2026 4061; Philippines: 63-2 848 5873; Singapore: 65-6415 4000; Thailand: 66-2 652 0871; India: 91-11 6462 0215. Or email: service@wsj-asia.com ADVERTISING SALES worldwide through Dow Jones International. Hong Kong: 852-2831 2504; Singapore: 65-6415 4300; Tokyo: 81-3 6269-2701; Frankfurt: 49 69 29725390; London: 44 207 842 9600; Paris: 33 1 40 17 17 01; New York: 1-212 659 2176. Or email: wsja.publisher@dowjones.com Trademarks appearing herein are used under license from Dow Jones & Company. USPS 337-350ISSN 0377-9920 PAGE TWO ONLINE TODAY Most read in Asia 1. Dictator Loses Grip in Desert 2. U.N. Imposes Sanctions on Gadhafi 3. Gadhafi’s Nurse Says She’s Going Home 4. Berkshire’s Buffett Eyes More Major Deals 5. Why Chinese Mothers are Superior Most emailed in Asia 1. Housing: Is it Time to Buy? 2. Bookshelf: No Way Back 3. Bookshelf: Smuggler’s Tales 4. Essay: Cities of the Sky 5. Berkshire’s Buffett Eyes More Major Deals Japan Real Time blogs.wsj.com/japanrealtime Fans in Japan line up to buy Nintendo’s new 3-D handheld videogame system, the 3DS. Real Time Economics China uses newspaper ad to defend currency policy. blogs.wsj.com/economics India Real Time blogs.wsj.com/indiarealtime What India expects from its 2011 budget, which is expected to be presented on Monday. i i i Business & Finance n Berkshire Hathaway’s Warren Buffett told shareholders in his annual letter that his “trigger fin- ger is itchy” for another big deal as the conglomerate’s cash hoard swelled. He also forecast a gradual but uneven improvement in the economy. Berkshire’s earnings jumped 61% last year. 21 n Nasdaq OMX Group is looking to two other exchanges for assis- tance in mounting a potential takeover bid for rival exchange NYSE Euronext. 27 n Oil’s rally is fueling worry that last week’s 2.3% decline in the Dow could be a sign of more trou- ble to come. History shows that the results aren’t pretty when oil prices jump suddenly. 26 n Hyundai will add a third shift and 1,000 new jobs at its plant in the Czech Republic in the latest sign that the South Korean auto maker is plotting further inroads in Europe. 22 nMizuho Financial is consider- ing acquiring full ownership of its brokerage and trust bank units. 27 n South Korea’s stock exchange will fine a Deutsche Bank unit for transactions that led to a big fall in the local market last year. 23 n China is likely to become the No. 1 market of French fashion la- bel Chloe within the next two years, according to the unit of Swiss luxury group Cie. Financiere Richemont. 25 n China agreed to buy unconven- tional gas sourced from coal seams from a venture owned by ConocoPhillips and Origin as the Asian economy continues to diver- sify its energy supplies to fuels that burn cleaner than coal. 23 n European aerospace and politi- cal officials voiced dismay at a U.S. decision to award a contract of more than $30 billion for air- borne refueling tankers to Boeing over EADS. 25 n Volkswagen’s profit soared sevenfold as booming demand in China fueled a powerful rebound for the German auto maker. 22 n Christian Dior suspended cele- brated designer John Galliano for allegedly making anti-Semitic and racist remarks. 25 n Groupon’s revenue surged to $760 million last year, with more than one-third of the daily deals website’s sales coming from out- side the U.S. 24 n Google is changing the secret formula it uses to rank Web pages as the company struggles to fight websites that have been able to game its system. 24 n United Overseas Bank’s fourth- quarter net climbed 35%. The Sin- gapore lender was buoyed by trading gains as lending margins deteriorated. 26 i i i World-Wide n The recovery of bodies slowed in New Zealand as specialists worked their way through large amounts of rubble. The death toll from last week’s earthquake in Christchurch rose to 147. 3 n Communist rebels killed three soldiers and injured four others in an ambush in the northern Philip- pines, officials said, despite the recent resumption of peace talks. n Nearly six years after Nancy Kissel was convicted of murdering her husband, she is on the stand again to try to convince a Hong Kong jury that though she killed him, she isn’t guilty of murder. 4 nMalaysian police arrested doz- ens of ethnic Indians in a clamp- down on a protest against a high- school book criticized for deni- grating the minority community. n The outlines of a deal on short-term spending cuts to avoid a possible U.S. government shut- down have begun to emerge. 8 n Irish voters rejected the party most closely associated with the rise and fall of the economy. 8 Afghan lawmakers ended a protracted stalemate by electing a little-known legislator as the speaker of the parliament, which is seeking to establish itself as a counter-balance to President Hamid Karzai’s authority. Above, a policeman stands at the site of a blast in the Arghandab district of Kandahar, where eight civilians and two police were killed. Page 4 Re ut er s What’s News— Inside Life & Style: Italy’s Vibram gains a foothold in China. 9 The Moment: Director Roger Garcia returns to Hong Kong. 10 Business & Finance: Time for next move on yuan liberalization. 21 Energy Innovations: TerraPower’s radical vision for reactors. 17 Monday, February 28, 2011 THE WALL STREET JOURNAL. 3 WORLD NEWS China takes a heavy hand to a pair of light protests China deployed a SWAT team, at- tack dogs and scores of plainclothes security agents in central Beijing af- ter anonymous online activists called for people to start a “Jasmine Revolution” for the second Sunday in a row, this time by “strolling” past designated sites in the capital and several other cities. It was hard to tell how many people responded, as most of the sites chosen are usually crowded on a Sunday, but witnesses said there were more people than normal at the site in Shanghai, and the huge security operation in Beijing dis- rupted normal shopping and at- tracted many curious bystanders. China has mobilized its vast state-security machine in the past few weeks to prevent the kind of un- rest racking the Middle East and North Africa. Among other mea- sures, it has detained or confined to their homes dozens of political ac- tivists and tightened Internet con- trols, especially on Twitter-like mi- croblogging sites. But while the heavy-handed re- sponse has succeeded in stifling protest, it illustrates how concerned China’s leaders are about the poten- tial for social unrest, at the same time drawing domestic and interna- tional attention to the extent of the Internet and social controls those leaders rely on to remain in power. In another indication of concern, Wen Jiabao, China’s premier, pledged in an online chat with Inter- net users to focus more on improv- ing the quality of life and on govern- ment accountability. The online protest appeals have been appearing on a U.S.-based Chi- nese-language website called boxun.com and circulating mainly on Twitter—two sites blocked in China—meaning the appeals have mostly been visible only to wealth- ier urbanites with technology to evade Internet censors. Police easily quashed last Sun- day’s call for protests at designated sites in 13 cities, including a McDon- ald’s outlet in the popular Wangfu- jing shopping street in downtown Beijing. For this past Sunday, the online activists urged people to pro- test silently by simply “taking a stroll” at many of the same sites. In Beijing, hundreds of security officers—including uniformed po- lice, burly plainclothes agents with earpieces, public-security “volun- teers” in red armbands, and at least one SWAT team armed with auto- matic rifles and body armor—were deployed to Wangfujing. They ini- tially allowed people to move fairly freely, while checking identification papers, but later cleared out most people and blocked off a 200-meter section of the street as two street- cleaning machines swept up and down spraying water to either side. Security officers also detained several foreign journalists, including Stephen Engle, a reporter for Bloomberg Television. The Wall Street Journal saw Mr. Engle being grabbed by several security officers, pushed to the ground, dragged along by his leg, punched in the head and beaten with a broom handle by a man dressed as street sweeper. A spokesperson for Bloomberg couldn’t be reached for comment. Crowds of curious Chinese on- lookers gathered as the street was blocked off and uniformed paramili- tary police marched down either side. But while several Chinese peo- ple were seen having altercations with the police, there were no signs of actual protests. Similarly in Shanghai, while more people than usual crowded around the designated site there were no signs of protest. Some watched the scene from inside a Starbucks and others snapped pho- tos as they walked to nearby malls. Police tried to disperse the thick crowds by blowing their whistles and shoving some people. Others were firmly escorted along the side- walk. News photographers said they saw at least four people detained. By Jeremy Page in Beijing And James T. Areddy in ShanghaiNew Zealand quake toll climbs to 147 CHRISTCHURCH, New Zealand—The recovery of bodies slowed Sunday as specialists worked their way through large amounts of rubble, five days after a massive earthquake rocked New Zealand’s second largest city. The death toll from Tuesday’s earthquake in Christchurch, New Zealand, rose to 147, but foreign res- cue crews still believe there is a possibility there are survivors un- derneath the rubble. Aftershocks continued to plague the region, with at least eight trem- ors felt in the city Saturday with a magnitude greater than 4.0. Interna- tional and local rescue teams have joined forces to search for the more than 200 people still missing, but hopes of finding survivors are fad- ing as rescuers haven’t found any- one alive since Wednesday. Police said many of the missing were expected to be among the 145 bodies that have been recovered. Only six people have so far been identified by authorities, though it is expected many of the unidentified bodies will be those of foreign na- tionals. “This is not just New Zealand’s tragedy, it is a tragedy that will touch many families around the world,” said Minister of Foreign Af- fairs Murray McCully. Rescue workers using dogs, sen- sitive listening equipment and cam- eras are searching for survivors as police enforce restrictions on enter- ing the city’s devastated historic downtown area. A 6 p.m. curfew re- mains in place to prevent looting. Aftershocks and fears that the 26-storey Grand Chancellor Hotel could collapse at any moment has complicated the recovery and played on frazzled nerves. Engineers esti- mated the building moved 10 feet in 10 minutes at one point more than a day after the 6.3-magnitude quake, and work has begun on stabilizing the building. Fourteen employees of the finan- cial-services firm Pyne Gould Corp. are believed to be trapped in the Pyne Gould Guinness office building downtown, while 120 people are be- lieved to have perished in the Can- terbury Television building. The reopening of some busi- nesses and shops has begun to re- store some normality in outlying suburbs and surrounding towns. The South Island’s largest port, Lyttel- ton, is expected to be reopened Sat- urday with full operations to resume within a week, allowing for the ex- port of coal, pine wood and dairy products from the South Island. “We have been working really hard to get things up and running,” said Simon Munt, an official at Lyt- telton Port Co. But the nearby township closer to the earthquake’s epicenter is likely to remain closed for some time, with Lyttelton pinpointed by Civil Defence as in the worse shape in terms of access to food and wa- ter. “Most of the buildings are going to have to be demolished because nobody is going to rebuild in brick, because you won’t be able to insure it,” said Lois Ogilvie, 50, the owner of the Volcano Café and Lava Bar in the center of town. Dramatic video shows the mo- ment Tuesday’s devastating earth- quake hit Christchurch, New Zealand, as survivors recount their ordeal. Residents are fleeing the area amid fears that another major quake could hit at any time. Lyttelton resi- dent Meredith Morton, 36 years old, sent her two sons to stay with their father in North Canterbury as she begins the clean up. “It’s nice not to be worrying about them in the quakes,” said Ms. Morton. As residents struggle to compre- hend the scale of the disaster, esti- mates of the cost of the damage have begun. Prime Minister John Key said that the damage bill will be more than four billion New Zealand dollars ($3 billion), and that he couldn’t rule out a J.P. Morgan esti- mate of NZ$16 billion. The deadly earthquake has led fi- nancial markets to price in a 0.25 percentage point interest-rate cut by New Zealand’s central bank at its March 10 policy-review meeting, with analysts saying the bank should ease monetary policy even more to he