2 * * THE WALL STREET JOURNAL. Tuesday, December 7, 2010 PAGE TWO What’s News— Inside i i i Business & Financen French President Sarkozy saidhe signed agreements advancinghis government’s plans to sell nu-clear reactors worth billions ofdollars to India. The two countriessigned seven pacts, includingagreements on space research andfilm production. 3n Changsha Zoomlion, a machin-ery maker, plans to raise as muchas $2.13 billion in a Hong Kongstock offering as signs of caution Asia Deal Journal:emerge among investors. 27 Australian taxes don’tn Japanese food and drug maker deter private equity. 19Otsuka set a premarket price foran IPO that could raise as much as$2.4 billion. 27n Google is launching GoogleeBooks, its long-anticipated digitalbookselling enterprise. 21n Euro-zone leaders will considerboosting their emergency lendingfacility for struggling membercountries this week, even thoughGermany remains staunchly op-posed to the idea. 5n Shinhan Financial’s president, Business & Finance:Shin Sang-hoon, stepped down as Rio Tinto pursues Reutersthe firm looks to regroup after aperiod of management turmoil. 22 Riversdale Mining. 19 Iran and six world powers held their first talks in more than a year Monday, which officials said focused mostly onn Ericsson said its chairman Tehran’s need to defuse fears about its nuclear programs. Delegates from Iran, the EU, U.S., Russia, Britain, France andplans to resign within the next Germany met in Geneva. Above, Iran’s chief negotiator Saeed Jalili, center, arrives at the conference center. Page 6two years. The Swedish telecom-equipment vendor also was cho- pledged his confidence he could n Pfizer’s chief retired unexpect- civilians join public service, a topsen to supply gear to Sprint. 22 prevent runaway inflation. 12 edly after 4½ years of leading the coalition commander said. 6 drug maker, citing fatigue fromn Australia’s Fairfax Media will n New doubts arose about the the job’s demands. 22 n The Afghan government easedconduct a search for a new chief sale of a controlling stake in restrictions on private-securityexecutive after the surprise depar- Hyundai Engineering when sellers i i i firms, stepping back from a com-ture of Brian McCarthy. 23 said documentation submitted by World-Wide plete ban announced in August. Hyundai Group on a loan for fi-n Prime Minister Kan reiterated nancing the bid is inadequate. 21 n A leaked diplomatic cable n Two suicide bombers disguisedhis policy plan for Japan, vowing shows Chinese Vice Premier Li as policemen killed 50 people into deliver a spending cap and n Samsung lowered its flat-panel Keqiang as saying in 2007, while an attack targeting a tribal meet-form a coalition as opposition factory utilization rate due to in a different post, that much of ing in northwest Pakistan.mounts to his leadership. 4 weak demand and to help ease a China’s provincial economic data Media Business: Ad global supply glut. 24 are unreliable. 4 n Youths clashed with police inn The DJIA wobbled as investors Athens, leaving one bystander in- recovery is forecast toparsed comments from Bernanke n U.S. officials charged over 500 n The prosecutor of the Interna- jured as thousands marched to continue in 2011. 25that the U.S. recovery may not be people in what they termed the tional Criminal Court said he commemorate the killing of a 16-self-sustaining, while gold looked largest-ever crackdown on scams opened a preliminary probe into year-old by police two years ago.set to settle at a record. Most ranging from Ponzi schemes to possible war crimes by North Ko-Asian markets ended higher. 29 pump-and-dump operations. 33 rea resulting from its recent n A French court found Conti- clashes with South Korea. WSJ.com nental Airlines and one of its me-n Fed chief Bernanke again de- n The euro fell as worry contin- chanics guilty of criminal wrong-fended the U.S. central bank’s ued about the outlook for fiscally n The measure of success in the doing in the crash of a Concordebond-buying program and weaker euro-zone members. 29 Afghan war will be whether more jet outside Paris a decade ago. ONLINE TODAY Most read in Asia Scene Asia blogs.wsj.com/scene In 2009, China ‘Wish Dream,’ a Heard on the Street: became the world’s painting by Arpita Honda revises its strategy in India. 34 largest importer of Singh, is set to sell Brazilian goods and is 1. 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Tuesday, December 7, 2010 THE WALL STREET JOURNAL. 3 WORLD NEWSFrance and India sign nuclear pactsBY AMOL SHARMA “France has made a strategic tors is estimated at €7 billion ($9.4 practice in most countries with nu- Powering India choice to believe in India—to believe billion). The agreements announced clear energy. NEW DELHI—French President in India’s future,” Mr. Sarkozy said Monday set contractual conditions India has said it may be able to India wants to increase its nuclearNicolas Sarkozy said he signed at a joint news conference Monday and break down roles and responsi- assuage U.S. concerns through regu- electricity generation 14-fold byagreements Monday advancing his with Indian Prime Minister Manmo- bilities of the parties, Areva said in lations, but has said changing the li- 2032.government’s plans to sell billions of han Singh. The official meetings be- a statement. Next steps include ability law will be too difficult. Rus-dollars of nuclear reactors to India, Current electricity sources: tween the leaders followed weekend studies to enable excavation at the sia already is building nuclearmoves that come as the U.S. is Other Nuclear sightseeing by the French president Maharashtra site and approvals plants in southern India.struggling to make progress in en- renewables 2.9% Oil and his wife, singer Carla Bruni, in- from India’s nuclear-safety author-tering India’s lucrative nuclear-en- 7.7% 0.9% cluding a visit to the Taj Mahal in ity, the company said.ergy market. Gas Agra. Mr. Singh said the French proj- France and India said they France and India said they 11% Mr. Sarkozy, who will travel to ect, which will ultimately producesigned a “framework agreement” Total: the financial capital of Mumbai on 10,000 megawatts of power, will signed a ‘frameworkthat paves the way for French state- 167 Tuesday to wrap up his visit, said “greatly increase the share of non-owned nuclear company Areva SA gigawatts that the nuclear agreements are polluting nuclear energy in electric- agreement’ that paves theto sell two reactors for a project in Hydro Coal “very favorable to French nuclear ity supply to our country.” way for French state-ownedIndia’s western state of Maharash- 25% 53% industry” and that he expects “no In contrast to Mr. Sarkozy, Mr.tra, along with nuclear fuel for 25 hidden surprises” as final negotia- Obama wasn’t able to make any an- nuclear company Areva SA toyears. Pricing has yet to be final- Note: Does not equal 100% due to rounding Source: Ministry of Power, India tions move forward. nouncements of progress with India sell two reactors .ized, and the countries still have to France intends to supply a total on nuclear-energy deals during hissort through various technical is- of six nuclear reactors to India in visit. While the U.S. led the interna-sues before completing the deal. Mr. Sarkozy’s four-day visit to coming years. India wants to de- tional effort to dismantle restric- Mr. Sarkozy reiterated his sup- The nuclear agreements were India, which follows a trip by U.S. velop nuclear electricity as a cleaner tions on nuclear trade with India port for India’s bid for a permanentamong seven pacts France and India President Barack Obama last month alternative to coal-fired power to beginning in 2005, American nu- seat on the U.N. Security Council,signed, including those on space re- and comes ahead of an expected help meet the energy-hungry coun- clear concerns are wary of selling saying that today India is “not in itssearch and film production. Mr. visit by Chinese premier Wen Jia- try’s needs. India has about 4,560 technology to India because of an rightful place in world governance”Sarkozy also lobbied for France to bao, was meant to strengthen stra- megawatts of nuclear power now, Indian law that exposes plant sup- and that a stronger Indian voice inwin a contract for an estimated $11 tegic ties between the nations while but wants to expand that roughly pliers to liability. global affairs is important for thebillion of fighter jets, a deal for making a case for French companies 14-fold by 2032. The U.S. companies want India to “equilibrium of the whole world.”which companies from the U.S. and in one of the world’s fastest-grow- Local media reported that the change the law and channel all lia- —Geraldine Amiel in Parisother countries are also vying. ing economies. value of the first two French reac- bility to plant operators, a standard contributed to this article. ENJOY RESPONSIBLY T h e u lt i m at e c o g n a c d e s t i n at i o n Richard Hennessy is the achievement of a unique blending of exceptional eaux-de-vie, the oldest of these are extremely rare and date back to the early 19th century. Each carafe is numbered and made of pure hand-blown crystal.
4 THE WALL STREET JOURNAL. Tuesday, December 7, 2010 WORLD NEWS: ASIA California pollution: made in China? Scientists have long known “It not only marks a milestone that pollution and dust from in the construction of the Beijing- China travels over the Pacific to Shanghai high-speed railway, but the Western United States. also is a major achievement of In a paper published in the China’s technology innovation,” latest issue of the scholarly Wang Yongping, spokesman of the journal Environmental Science and Ministry of Railways, was quoted Technology and picked up by by Xinhua as saying. Chemical & Engineering News, a Foreign high-speed train team of geochemists announced producers who taught China how that they have developed a to make bullet trains disagree. method for tracing fine airborne Many executives at those particulate pollution (also known companies shy away from as PM2.5 because the particles are commenting on China’s high- less than 2.5 microns wide) with speed technology out of fear of origins in East Asia by testing for offending the country’s a specific lead isotope, 208Pb, government, but a few who are Imaginechina/Zuma Press found in greater concentrations in willing to talk say theA construction site in Liaoning province, where Vice Premier Li Keqiang was Communist Party secretary in 2007. the region’s coal and metal ores. fundamental technology behindChinese data ‘man-made’ Led by University of California, those trains remains more or less Berkeley, identical to the postdoctoral technology researcher foreign Stephanie Ewing, companies the research providedLeaked cable shows now-vice premier calling local data unreliable team tested its filtering method originally half a decade ago. on samples from “What ChinaBY ANDREW BATSON dinner in Beijing with then-U.S. Am- reers often depend on how well the the San has is the same bassador Clark Randt on March 12, economy in their jurisdiction is per- Francisco Bay trains with BEIJING—A senior Chinese offi- 2007. His remarks focused on the forming, there is an incentive for Area, curious to see how much of beefed-up propulsion and othercial said in 2007 that much of the challenges of administering the them to report positive figures. Northern California’s pollution tweaked systems” to achievecountry’s local economic data are province of Liaoning, which because Many private-sector analysts came from East Asia. faster speeds, an official from oneunreliable, according to a leaked of its legacy of failed state-owned also closely track the indicators re- From December 2007 through foreign high-speed rail companydiplomatic cable published by the enterprises was burdened with a portedly favored by Mr. Li, which May 2008, the Chemical & says. —Norihiko ShirouzuWikiLeaks website. large number of unemployed work- are thought to reflect real activity Engineering News says, Ms. Ewing The official, Vice Premier Li Ke- ers. and be less subject to political influ- and team collected samples, then Ex-U.S. trade representativeqiang, was at the time Communist “When evaluating Liaoning’s ence. used mass spectrometry to filter not so diplomatic about ChinaParty secretary of the northeastern economy, he focuses on three fig- The nationwide gross domestic out the particulate pollution and Now that Susan Schwab, whoprovince of Liaoning. Since landing ures: 1) electricity consumption, product figures published by the Na- measure the amounts of different was U.S. trade representativehis current position, he has over- which was up 10% in Liaoning last tional Bureau of Statistics aren’t di- lead isotopes. After analyzing under President George W. Bush,seen many of the central govern- year; 2) volume of rail cargo, which rectly based on the provincial GDP data, the researchers found the has left public life, she is free toment’s efforts to improve the qual- is fairly accurate because fees are figures and attempt to correct for median proportion of Asian lead talk freely about the state of tradeity of its economic statistics, which charged for each unit of weight; and some of their biases. Indeed, almost in the samples was 29%. relations with China.continue to face many questions 3) amount of loans disbursed, which all of China’s provinces consistently The question now is how much “Foreign firms are in factover their accuracy and consistency. also tends to be accurate given the report GDP growth rates above the of that can be attributed to San discriminated against in this Mr. Li is considered the top con- interest fees charged,” the cable national average. Francisco’s penchant for China- market,” Ms. Schwab, now atender to take over as premier, the says. The NBS, while defending the na- made iPhones and iPads? professor at the University oftop economic policy-making posi- “By looking at these three fig- tionwide figures it produces as fun- —Josh Chin Maryland, said at a paneltion, when the current head of gov- ures, Li said he can measure with damentally accurate, has sought discussion in Beijing.ernment, Wen Jiabao, steps down in relative accuracy the speed of eco- more influence over the numbers Chinese train breaks Ms. Schwab referred to herearly 2013. The reported comments nomic growth. All other figures, es- compiled by local authorities. speed record, again own experience negotiating dealsprovide intriguing context for his pecially GDP statistics, are ‘for ref- In his public comments about A Chinese high-speed train set in China for Motorola in the earlycurrent role, which among other erence only,’ he said smiling,” the economic statistics, Mr. Li also has another world speed record 1990s. She did note that China’stasks include overseeing the ongo- cable reads. “GDP figures are ‘man- repeatedly stressed the importance during a test run Friday, breaking government recently launched aing nationwide population census. made’ and therefore unreliable,” the of gathering accurate information. its own record set just two new drive to address one of China’s Foreign Ministry has said cable paraphrases Mr. Li as saying. “Data live and die by its quality,” months ago. The Chinese Ministry foreign companies’ main problemsit will not comment on the content Analysts have long questioned he said at a government meeting in of Railways calls the feat a “major in China: violation of intellectual-of the diplomatic cables published the reliability of economic figures early 2009, urging accuracy in a achievement of China’s technology property rights in the form ofby WikiLeaks. The leaked cable re- produced by local governments in count of the nation’s businesses and innovation,” but doubts linger things like pirated software andports comments Mr. Li made in a China. Because local officials’ ca- their economic activities. over just how much of China’s knockoff handbags. But she bullet-train technology can be pointed out similar government described as its own. campaigns in past years haven’tJapan’s Kan sticks by his plan This record was accomplished resolved the problem. during the test run for a train The disenchantment of big called the CRH380A. According to corporations with China could a report by state-run Xinhua news have consequences for how the agency, the train hit a top speed political debate over trade evolvesBY TAKASHI MOCHIZUKI make a promised cut in Japan’s 40% censure motions on the two offi- of 486.1 kilometers per hour in the U.S., Ms. Schwab said. corporate tax rate without breach- cials. The moves have no practical between Zaozhuang City of —Andrew Batson TOKYO—Japanese Prime Minis- ing the debt limit. effect, but the actions represent the Shandong Province and Bengbuter Naoto Kan signaled Monday that The government hopes to finish strongest message yet of disap- City in eastern Anhui Province, Keep up on China minute byhe won’t give in to pressure from compiling the budget by the end of proval over the government. part of a new high-speed rail line minute with The Wall Streethis political opponents to change his December, and plans to propose it At a press conference Monday, that will eventually link Beijing Journal’s China Real Time Reportpolicies or members of his cabinet. when the Diet reconvenes in Janu- Mr. Kan said: “It’s not a matter of and Shanghai. at blogs.wsj.com/chinarealtime Mr. Kan also vowed to deliver on ary. But lacking a majority in the cabinet reshuffling” and Mr. “Sen-the government’s promise to cap upper house of parliament, Mr. Kan goku does not need to resign” be-main spending at 71 trillion yen needs support from an increasingly cause of the no-confidence motion.($858 billion) and new borrowing at hostile opposition to get the budget Instead, he said he will push to44.3 trillion yen in the budget for passed. With public support now build a “firm structure” that enablesthe next fiscal year starting April. around 20%, that outlook is dim. the government to carry out its pol- Mr. Kan’s remarks indicate his Instead it has launched a strong icies. To achieve that goal, Mr. Kandetermination not to follow the path attack against top officials in the is hoping to strengthen its ties withof the previous four premiers, none government. The main opposition smaller parties, including the ex-co-of whom lasted more than a year as parties are demanding that Mr. Kan alition Social Democratic Party.their public support fell. fire Chief Cabinet Secretary Yoshito But such a move carries its own However, opposition parties, in- Sengoku and Land Minister Sumio potential problems. The Social Dem-cluding the former-coalition Social Mabuchi over their handling of for- ocrats are staunchly opposed to theDemocratic Party, are demanding eign-affairs issues, including Sep- U.S. military presence in Okinawatough policy changes in return for tember’s collision between a Japa- and are demanding that a majorcooperation, such as removing a U.S. nese patrol ship and a Chinese base be moved out of Okinawa and Xinhua/ZumapressMarine base in Okinawa. At the fishing boat in disputed waters. preferably out of Japan entirely.same time, some economic issues Only last month, the opposition- —Takashi Nakamichi contributed The railway ministry is expected to limit the speed of these trains to 380 kph.remain unsolved, including how to controlled upper chamber slapped to this article.