【华尔街日报亚洲版】June 18th 2012

VOL. XXXVI NO. 203 * * MONDAY, JUNE 18, 2012 OPINION: Bail-In Banks In Spain, Not Bailout Page 13 Energy Innovations JOURNAL REPORT Pages 17-20JOURNAL REPORT Pages 17-20 As of 4 p.m. ET DJIA 12767.17 À 0.91% FTSE 100 5478.81 À 0.22% Nikkei 225 8569.32 À 0.01% Shanghai Comp. 2306.85 À 0.47% Hang Seng 19233.94 À 2.26% Sensex 16949.83 À 1.63% S&P/ASX 200 4057.30 À 0.37% asia.WSJ.com (India facsimile Vol. 4 No. 7) Now that Hong Kong’s stock exchange has clinched a pact to buy the London Metal Exchange, it must show the costly commodities bet will pay off. Business..................21 Chinese infant-formula maker issues recall due to mercury findings. Corporate News ...... 25 Inside Getty Images Alexis Tsipras, leader of Greece’s leftist Syriza Party, cast his vote Sunday in Athens, in a re-run of the general election after last month’s vote failed to produce a coalition government. Final exit polls Sunday showed conservatives taking a slim lead. Page 6 Election Turnout Is Low in Egypt CAIRO—Turnout on Egypt’s final day of a presi- dential runoff appeared low Sunday as the military leader- ship seemed poised to cement its hold on the nation’s legis- lative authority and clarified the incoming president’s pow- ers. Citing official sources in the Supreme Council of the Armed Forces, Egypt’s state news agencies reported that within days the council will introduce constitutional dec- larations that will allow them to act in place of the Parlia- ment that was dissolved last week by court order. The move would grant the SCAF exclusive legislative powers in addition to control of the nation’s budget until a new Parliament is elected, ac- cording to state media. The decree also will give the mili- tary the authority to compose the constituent assembly that will draft Egypt’s new consti- tution. According to the military sources, the new president will be given the power to ap- point ministers and other gov- ernment officials and will set a timetable for new parlia- mentary elections. Please turn to page 14 BY TAMER EL-GHOBASHY GreeksVote AsPressure RisesonEuro Europe, facing a momen- tous Greek election after a week of mounting financial stresses, is preparing for what some financial analysts are calling its “Lehman moment”: the prospect that Greece could leave the euro currency union following Sunday’s par- liamentary election, which was still too close to call late Sunday. Final exit polls showed Greece’s New Democracy party—which mostly supports the country’s latest European- led bailout—taking a slim lead in the race over the leftist Syriza party, according to state broadcaster NET. The exit polls pointed to a fragmented Parliament with no party likely to win an out- right majority, which could set off another contentious round of coalition talks as early as Monday. Ten days of coalition talks following an in- conclusive vote May 6 failed to produce a stable govern- ment, forcing Sunday’s second round. Meanwhile, leaders of the world’s largest advanced and emerging economies are set to open their meeting on Monday largely where they left off last November in France: on edge as the Greek turmoil threatens to cripple the global economy. The stakes are even higher this time for the Group of 20 nations as both rich and de- veloping countries slow in unison. The G-20 members, which account for two-thirds of the world’s population and about 85% of global economic out- put, face a critical turning Please turn to page 16 By Stephen Fidler in Brussels, AlkmanGranitsas in Athens and Sudeep Reddy in Los Cabos,Mexico Australia:A$6.00(InclGST),Brunei:B$7.00,China:RM B25.00,Hong Kong:HK$20.00(InclM acau),India:Rs30.00,Indonesia:Rp18,000(InclPPN),Japan:Yen500(InclJCT),Korea:W on2,500, M alaysia:RM 7.00,Pakistan:Rs140.00,Philippines:Peso80.00,Singapore:S$4.50(InclGST),SriLanka:Slrs180(InclVAT),Taiw an:NT$60.00,Thailand:Baht50.00,Vietnam :US$2.50 KDN PP 9315/10/2012 (031275) M ICA (P) NO.030/10/2011 SK.M ENPEN R.I.NO:01/SK/M ENPEN/SCJJ/1998 TGL.4 SEPT 1998 Nuclear-Plant Restart Highlights Split in Japan Japan ordered a pair of re- actors back online for the first time since last year’s nu- clear accident, but the chaos and confusion surrounding the decision highlight how unready the country may still be to restart its atomic-en- ergy engine. A group of cabinet minis- ters led by Prime Minister Yoshihiko Noda decided Sat- urday to restart the reactors, in a bid to wrench the econ- omy back on track, 15 months after an earthquake and tsu- nami caused devastating meltdowns at the Fukushima Daiichi power plant. The gov- ernment has estimated that if Japan doesn’t turn any reac- tors back on, its economy could shrink as much as 5% by 2030. Yet the restart decision comes a month ahead of de- liberations over a new energy plan, which could call for scrapping nuclear power for good. And the restarts would come a few months before the setup of a new nuclear regula- tor, which will craft new safety guidelines and is ex- pected to take a harder line on vetting reactors. Opinion polls consistently show more than half of Japa- nese are opposed to nuclear power, though they fret over energy shortages expected as soon as this summer and higher electric bills if the re- actors stay off. Even some of those who favor atomic en- ergy worry the government hasn’t done enough to ensure nuclear plants will be safe. Many businesses have strongly backed restarts, stat- ing the need for stable power supplies. “We understand that we have not obtained all of the nation’s understanding,’’ said Industry Minister Yukio Edano on Saturday. The deep ambivalence is playing out in and around Oi, the western Japanese town that is home to the two first reactors slated to come back online. The mayor of Oi says he is satisfied with the safety precautions taken so far at Please turn to page 16 BY MITSURU OBE AND CHESTER DAWSON Syriza Party Leader Casts Ballot in Athens’s Latest Tight Contest dingbat Greece chooses between competing visions......................6 dingbat New cast of characters add to G-20 challenge.......................9 “Salesforcemakes collaborating with 20,000 employees easy.” Enrique Salem President and CEO, Symantec + Symantec = 2012 salesforce.com, inc. All rights reserved. Salesforce, Social Enterprise, the SalesforceCorporateCloudand "NoSoftware" logos, andothers are trademarks of salesforce.com, inc.Othermarks used are theproperty of their respective owners. salesforce.com/like weibo.com/pdfmagsweibo.com/pdfmags 2 | Monday, June 18, 2012 * * THEWALL STREET JOURNAL. THE WALL STREET JOURNAL ASIA Dow Jones Publishing Company (Asia) 25/F, Central Plaza, 18 Harbour Road, Hong Kong Tel 852-2573 7121 Fax 852-2834 5291 www.wsj-asia.com SUBSCRIPTIONS and Address Changes, please telephone our local customer service hotline, Hong Kong/Taiwan: 852-2831 2555; Beijing: 86-10 6581 4090; Shanghai: 86-21 5836 8228; Indonesia: 62-21 527 7592; Japan: 81-3 6269-2760; Korea: 82-2 3700 1925; Malaysia: 60-3 2026 4061; Philippines: 63-2 848 5873; Singapore: 65-6415 4000; Thailand: 66-2 690 4222 to 7; India: 91-11 6462 0215. Or email: service@wsj-asia.com ADVERTISING SALES worldwide through Dow Jones International. Hong Kong: 852-2831 2504; Singapore: 65- 6415 4300; Tokyo: 81-3 6269-2701; Frankfurt: 49 69 29725390; London: 44 207 842 9600; Paris: 33 1 40 17 17 01; New York: 1-212 659 2176. Or email: wsja.publisher@dowjones.com Trademarks appearing herein are used under license from Dow Jones & Company. USPS 337-350ISSN 0377-9920 PAGE TWO ONLINE TODAY Most Read in Asia 1. Japan Parties Reach a Tax Deal 2. FDA Warns Against Korean Seafood 3. Greeks Vote in High-Stakes Election 4. Opinion: Crovitz: Google Counterattacks China 5. World Braces for Euro Test Most Emailed in Asia 1. China Astronauts Prepare for Mission 2. Japan Parties Reach a Tax Deal 3. Opinion: Sebastian Thrun: What’s Next for Silicon Valley? 4. Resort Living in Indonesia 5. Opinion: Crovitz: Google Counterattacks China Southeast Asia wsj.com/searealtime Google launches a YouTube site for Indonesia’s active users. U.S. Open wsj.com/dailyfix Fourteen-year-old Andy Zhang was back to being a spectator after exiting from tournament. Scene Asia wsj.com/scene ‘When I was looking for ideas, I noticed that paintings with children look livelier.’ Lithuanian artist Ernest Zacharevic, whose paintings are popping up on buildings in George Town, Penang i i i Business & Finance n The U.S. economy is losing mo- mentum just as global events that could derail the recovery gather steam. Most economists still ex- pect the U.S. to avoid a recession, but project lackluster growth. 10 n Japan is moving to insulate it- self from a Europe-style sover- eign-debt crisis, as legislators work to pass a bill that would double the national sales tax. 4 n South Korean oil refiner Hyun- dai Oilbank scrapped plans for an IPO that was expected to raise at least $1 billion in June or July. 26 n IHH Healthcare plans to sell 2.23 billion shares in a dual listing in Malaysia and Singapore next month. The IPO could raise as much as $2 billion. 26 nMicrosoft is set to announce plans to sell a tablet computer un- der its own brand, as the software maker continues to play catch-up in the mobile markets. 24 n Nokia’s latest profit warning and layoffs are raising an impor- tant question in the stock market: Just how much is the cellphone firm’s business really worth? 24 n Burger King formed a joint venture to open 1,000 restaurants in China in five to seven years. 22 n Carrefour said it would sell its Greek supermarket to its local partner and walk away from the country at a loss, offering con- crete evidence of foreign investors severing ties with Greece. 8 n A pilot program to make it eas- ier for companies to settle trade in Chinese yuan began. Deutsche Bank made the program’s first cross-border yuan payment. 26 n U.S. cotton futures rose almost 10% last week in response to news of heavy Chinese buying. 28 i i i World-Wide n The U.N. Development Program put its assistant Afghanistan country director and the head of its Afghan police trust fund on ad- ministrative leave amid a probe into suspected fraud. WSJ.com n French President Hollande was poised to secure the parliamen- tary majority he says he needs to revive the country’s economy, af- ter voters gave his Socialist Party a lead in legislative elections. 6 n Three suicide bomb attacks on churches rocked northern Nigeria, killing at least 21 people and inur- ing about 100 others. n Died: Crown Prince Nayef bin Abdulaziz Al Saud, who worked behind the scenes for decades as Saudi Arabia’s interior chief. He was about 79 years old. n Died: Rodney King, 47, whose videotaped beating by police sparked the 1992 Los Angeles ri- ots, of an apparent drowning. Au- thorities didn’t suspect foul play. A Muslim woman hides in a house with relatives in Bangladesh after the family fled recent violence in western Myanmar over tensions between the ethnic Rakhine community and Rohingya Muslim residents. Myanmar’s state media said Saturday that the death toll from the communal violence had risen to 50. Page 3 Re ut er s Inside Asia News: China’s space launch includes first woman. 5 U.S. News: Obama’s immigration move draws criticism. 10 Business & Finance: Bank regulations are likely to be eased. 21 Business & Finance: U.S. lands big catch in Gupta conviction. 21 What’s News— weibo.com/pdfmagsweibo.com/pdfmags THEWALL STREET JOURNAL. * * Monday, June 18, 2012 | 3 WORLD NEWS U.N. Syrian Move Sparks Calls for Help ISTANBUL—Syrian opposition leaders called for United Nations Se- curity Council action after the latest peace plan appeared to unravel with the U.N. mission in Syria suspending observers’ activities because of surging violence. The decision Saturday to suspend the activities of unarmed monitors working under the U.N. Supervision Mission in Syria reflected a serious escalation in the armed fighting, with an April 12 cease-fire agreed to by the government and opposition now in tatters and few diplomatic options to stem the country’s de- scent into a protracted civil war. The U.N. Security Council is ex- pected to meet on Syria on Tuesday, when head of the U.N. mission in Syria, Maj. Gen. Robert Mood, will brief the council. The immediate risk the suspen- sion poses is even worse violence and chaos 16 months into a conflict in which neither side appears willing to compromise. The mission’s sus- pension also brings to an end some of the most extensive first-hand ac- counts of the conflict at a critical time, with mass and gruesome kill- ings increasing. “It’s a natural outcome due to the lack of commitment by the warring sides,” Louay Hussain, a veteran dis- sident in Damascus, said of the re- cent surge in violence that made the work of the blue-bereted monitors nearly impossible. “The escalation is not proof of the plan’s failure but of all the effort that has gone into sab- otaging it.” The Syrian government and op- position have traded blame since April for the apparent failure of a six-point peace plan brokered by special U.N. and Arab League envoy Kofi Annan, of which the deploy- ment of nearly 300 unarmed moni- tors across Syria was one part. Protesters and opposition fight- ers say they grew frustrated watch- ing observers they saw as simple by- standers to government attacks and gruesome killings. Regime support- ers, too, criticized the mission for appearing to accept a militarized op- position fighting the government’s forces. The result was an environ- ment that a U.N. official describe as “extremely, terribly hostile” for the monitors. In a statement Saturday, Gen. Mood, a veteran Norwegian peace- keeper, said an escalation in armed violence over the past 10 days was “basically impeding our ability to carry out our mandate.” The suspen- sion will be reviewed on a daily ba- sis, he said. “The lack of willingness by the parties to seek a peaceful transition, and the push towards advancing mil- itary positions is increasing the losses on both sides: Innocent civil- ians, men, women and children are being killed every day,” Gen. Mood said. In the wake of the plan’s failure, Syria’s opposition is regrouping. Backed by some Western states, the Syrian National Council-the leading opposition coalition-in-exile-is push- ing for a U.N. Security Council reso- lution that would sanction Damascus for its failure to comply with the plan. The peace plan is already backed by a Security Council man- date that expires next month, but it doesn’t outline any consequences for lack of compliance. With some members pushing for a resolution that would authorize some kind of intervention to protect civilians, Syria’s conflict appeared set for a fresh stalemate at the U.N. Russia, a key ally of Syrian President Bashar al-Assad, has said it won’t accept that kind of action. “It could be vetoed, we know that, but for us it’s a requirement,’ ‘ said Bassma Kodmani, head of for- eign relations at the SNC. “We see that now we have exhausted every attempt at seeking a solution where the regime needs to cooperate, and without the cooperation of the re- gime, that takes us very logically and automatically to consider a res- olution...with the use of coercive measures, and the authorization of the use of all available, legitimate means to enforce a resolution.” The U.N. mission’s suspension comes nearly a month before its ini- tial three-month U.N. Security Coun- cil mandate comes due. U.N. officials have expressed growing concern about the safety of the unarmed monitors over the past few weeks, citing near-daily attacks near or on convoys and firing on the monitors. The immediate risk the suspen- sion poses is even worse violence and chaos, 16 months into a conflict in which neither side appears willing to compromise. At least 10,000 peo- ple have been killed and thousands more displaced in the Syrian upris- ing, according to U.N. estimates. President Bashar al-Assad is backed by a retrenching core of loyalists- and, internationally, by Russia and Iran. The regime faces an opposition that has won the backing of Arab Gulf states, Turkey, and the U.S. and its allies, and a ground insurgency that appears to be becoming better- organized and equipped. Syria’s government said it had been informed on Friday night of the decision to suspend the mission, which it characterized as pointing the blame at armed opposition fight- ers. “Arab and international parties are still supplying the terrorists with advanced weapons and telecommu- nications equipment that help the terrorists to commit their crimes and defy the United Nations and its plan,” state news agency SANA said. A surge in violence in January disrupted the work of Arab League monitors in Syria. The end of that mission was followed by a ramped- up military campaign to root out op- position fighters from their strong- holds that led government and opposition forces into a spiral of at- tacks and counterattacks. “No doubt, the suspension of the monitors will lead to a rising tally of deaths and allow for greater vio- lence from the government,” said Abdelbaset Sieda, the newly elected president of the Syrian National Council, the leading opposition co- alition-in-exile. BY NOUR MALAS U.N. observers left Damascus on Sunday after their mission was suspended. A ss oc ia te d Pr es s Suu Kyi Calls for Release of Prisoners OSLO—Myanmar opposition leader Aung San Suu Kyi, in a long- overdue Nobel lecture on Saturday, urged the world to fight for the im- mediate release of her country’s re- maining political prisoners and pris- oners of conscience. Ms. Suu Kyi noted that although democratic progress is under way, hostility and violence continue to plague the lives of people in Myan- mar, also known as Burma. “Absolute peace in our world is an unattainable goal,” she said. The Oxford University-educated daughter of Gen. Aung San, who led Myanmar to independence from the British before he was assassinated in 1947, said her country has recently taken steps toward democratization, allowing her to finally travel abroad and deliver her speech. On Monday, Ms. Suu Kyi begins a weeklong trip to Britain. Her itiner- ary includes talks with Prime Minis- ter David Cameron, an address to Parliament and a meeting with Prince Charles, according to the As- sociated Press. On Wednesday, at Oxford, she will accept an honorary doctorate she was awarded in 1993, while she was under house arrest in Yangon. Ms. Suu Kyi’s Nobel speech Sat- urday came 21 years after her sons, Kim and Alexander, accepted her $1.3 million peace prize, awarded in 1991 for her work for democracy and human rights. Myanmar’s mili- tary junta kept Ms. Suu Kyi under house arrest for a total of 15 years after her party, the National League for Democracy, won a clear victory in the 1990 elections. Ms. Suu Kyi, 66 years old, said she wanted to speak up for the many “prisoners of conscience” who remain without access to justice in her home country. “It is to be feared that because the best-known detain- ees have been released, the remain- der, the unknown ones, will be for- gotten. As you look at me and listen to me, please remember the often- repeated truth that one prisoner of conscience is one too many,” she said, drawing the lecture’s first and biggest applause in the crowded Oslo City Hall. Ms. Suu Kyi’s first trip to Europe in 24 years has been clouded by re- gional clashes between Buddhists and Muslim Rohingya in Myanmar. The opposition leader noted that hostili- ties remain in the far north of Myan- mar, and that communal violence, ar- son and murder were happening in the western part of the country just days before her departure. “I hope cease-fire agreements will lead to po- litical settlements founded on the as- pirations of the people,” she said. The Nobel Peace Prize—named after Swedish phi