Wallstreetjournaleurope 20160408 The Wall Street Journal Europe

For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
Golf Homes Dan Neil

Tesla’s Electric
By the Sea Extravagance
MANSION | W9 OFF DUTY | W8
FRIDAY - SUNDAY, APRIL 8 - 10, 2016 ~ VOL. XXXIV NO. 48 WSJ.com EUROPE EDITION
DJIA 17541.96 g 0.98% S&P 500 2041.91 g 1.20% NIKKEI 15749.84 À 0.22% STOXX 600 328.10 g 0.77% OIL 37.26 g 1.30% GOLD 1236.20 À 1.12% EURO 1.1386 g 0.11% DLR ¥108.06 g 1.58%
Putin Brushes Aside ‘Panama Papers’ Allegations Militants

What’s Kidnap
News Hundreds
Business & Finance
In Syria
M edian pay for CEOs of
the top U.S. firms fell
3.8% last year to $10.8 mil-
BY SAM DAGHER
lion, the sharpest drop
BEIRUT—Islamic State mili-
since the financial crisis. A1
tants kidnapped more than
The head of Seven & i, the 300 workers at a cement
Japanese owner of 7-Eleven, plant, part of a broader as-
said he would step down af- sault on a strategic town near
ter a clash with hedge-fund the capital Damascus that is
operator Daniel Loeb. A1 home to major military and in-
dustrial installations, Syrian
France’s Numericable
state media reported on
has sold $5.19 billion in
Thursday.
debt in the largest-yet sale
Al Badia Cement, which
KLIMENTYEV MIKHAIL/TASS/ZUMA PRESS
of a single junk bond. B5

owns the plant located near
Allergan completed a li- the town of al-Dumayr, told
censing deal to develop neu- the Ministry of Industry that
rological drugs, just after its its employees had been ab-
deal with Pfizer collapsed. B1 ducted on Wednesday and that
it had lost all contact with
VW’s labor leaders ac-
them, SANA news agency re-
cused management of using
ported. Some of the employees
the emissions scandal as an
were seen in an Islamic State
excuse for job cuts. B1
convoy heading east toward
Economists surveyed RESPONSE: Russian President Vladimir Putin, above at a media forum in St. Petersburg on Thursday, said there was no ‘element of corruption’ the desert, the report said.
trimmed their forecasts for in reports that placed his associates at the center of offshore transactions. Mr. Putin also said that he wasn’t mentioned personally. A3 An official with Al Badia
U.S. job gains and economic based in Damascus and
growth in the year ahead. A5 reached by telephone declined
CEO Pay Fell Most Since ’08

to comment on the report.
M&S reported a 1.9% rise
U.K.-based opposition mon-
in sales as food sales helped
itoring group the Syrian Ob-
outweigh a slump in its home
servatory for Human Rights
and clothing division. B2
later said Islamic State kid-
A secret technique used napped about 170 of the work-
to unlock a terrorist’s iPhone Median compensation corporate performance slowed chiefs since the 2008 crisis. including salary and annual ers while the rest escaped.
doesn’t work on newer Ap- cash bonuses and accounting “Increases in CEO pay have bonus, was 2%, down from This couldn’t be independently
ple models, the FBI said. B3 for S&P 500 bosses rules pared back pension taken a bit of a pause this 5.6% growth in 2014, the Jour- confirmed.
Uber’s Chinese rival is shrank to $10.8 million growth. year,” said John Roe, head of nal analysis found. The push by Islamic State
Median pay for the CEOs of advisory services at ISS Corpo- Many of the overall declines on al-Dumayr, about 25 miles
close to completing a fund- from $11.2 million nearly 300 large publicly rate Solutions. Where pay is in pay were driven by slower northeast of the capital, comes
ing round that values that
traded companies slipped 3.8% rising, Mr. Roe noted, “it’s in growth in CEO pension values, as the extremist group faces
firm at over $25 billion. B3
BY THEO FRANCIS to $10.8 million last year from the places shareholders like to a year after pension increases pressure on many fronts fol-
A U.S. trade panel said it AND JOANN S. LUBLIN $11.2 million in 2014, a Wall see it coming from most: It’s in for many top executives lowing a series of losses in
would investigate the global Street Journal analysis of com- equity.” swelled because of changes to Iraq and Syria this year.
aluminum trade and its im- Compensation for the chief pensation data from MyLogIQ The median rise in stock- the actuarial assumptions un- Fierce clashes broke out in
pact on the U.S. industry. B4 executives of the biggest U.S. found. Half of those CEOs saw based compensation—the big- derlying them. and around the city on Thurs-
companies fell more sharply total pay either decline or rise gest component of most CEO Companies in the Journal’s day as the Syrian regime and
World-Wide last year than any year since by less than 1%—also the pay packages—was about 7%. analysis generated a flat me- its allies tried to repel the Is-
the financial crisis, as weaker worst showing for S&P 500 The median rise in cash pay, Please see PAY page A5 Please see SYRIA page A2
Islamic State militants in
REMAKING BASKETBALL
Syria kidnapped over 300
workers at a cement plant
in an assault on a strategic
7-Eleven
Chief Loses
THE WARRIORS’ WAY
town near Damascus. A1
Putin denied any “ele-
ment of corruption” in re-
ports that placed his close Boardroom
associates at the center of
offshore transactions. A3
An Austrian banker quit
Showdown Team executives saw the 3-point line as a market inefficiency to exploit
and more details of a Nor- BY MEGUMI FUJIKAWA
wegian scandal emerged, AND KOSAKU NARIOKA BY BEN COHEN curve flattened. It seemed that the sport had
in the latest fallout from found its optimal ratio.
the “Panama Papers.” A3 TOKYO—A convenience- OAKLAND, Calif.—On every NBA court, Then the Golden State Warriors came along
A founder of Mossack store pioneer who built a To- about 24 feet from the basket, there is a thin and blew that assumption to pieces.
kyo-based 7-Eleven empire stripe of colored paint. The flat-sided semicir- The Warriors, the National Basketball Asso-
BEN MARGOT/ASSOCIATED PRESS
Fonseca, the law firm at

the center of the leak, de- said Thursday he would step cle it forms is the boundary between shots ciation’s defending champion, now stand three
fended its practices. A3 down after losing a board- that count for two points and shots that are wins from tying the league record of 72 in the
Cameron said he did ben- room clash that pitted him worth three. regular season, set in 1996 by Michael Jor-
efit from an offshore fund against U.S. hedge-fund opera- When the NBA added the lines in 1979, the dan’s Chicago Bulls. Much of the credit be-
set up by his late father. A3 tor Daniel Loeb. players weren’t sure what to think. They longs to the star guard Stephen Curry, who is
The resignation of To- sniffed and pawed at them like cats with a new having, by almost every measure, one of the
1MDB’s board offered to shifumi Suzuki, the 83-year- toy. Only 3% of the shots they put up that sea- best seasons of any player in history.
quit after a report found old chairman and chief execu- son were 3-pointers. But there is another tale to be told about
billions missing but didn’t tive of 7-Eleven’s parent Warriors star Stephen Curry Over the next three decades, that number the Warriors. It involves a group of executives
mention Malaysia’s leader, company, Seven & i Holdings last month in Oakland, Calif. crept higher. When it reached 22%, the growth Please see POINTS page A6
who founded the fund. A4 Co., is a milestone for the
Kerry and Bahrain’s budding activist-shareholder
foreign minister urged Iran
to curb its provocative be-
movement in Japan, which
has drawn strength from
Parents Have No Beef Bangladeshi Students Rally
havior in the Mideast. A2 Prime Minister Shinzo Abe’s
corporate-governance over-
With This Preschool Menu
Saudi Arabia’s king ar- haul. Mr. Suzuki has con- i i i
rived in Egypt for a rare visit trolled his company for de-
to cement ties between the cades and is one of Japan’s Jersey City vegan operation serves up
two major Arab powers. A4 most prominent executives.
A fight among unions The battle between Mr. Su- tofu, squash risotto; rocks for toys
has slowed the creation of zuki and Mr. Loeb centered on
a U.S. super PAC to aid succession and corporate
pro-labor Democrats. A5 strategy. Under Mr. Suzuki, BY LESLIE BRODY with such a specific diet. But
Seven & i Holdings has aggres- when two children being raised
Nearly all the suspects sively acquired other retailers JERSEY CITY, N.J.—At the vegan enrolled four years ago,
in the Cologne sex assaults including department stores Scandinavian School of Jersey school director Maria
were migrants and asylum and a baby-goods chain, while City, the children don’t have Germerud-Sharp didn’t want
seekers, officials said. A4 retaining the money-losing cupcakes at birthday parties, but them to feel left out at meals, so
ABIR ABDULLAH/EUROPEAN PRESSPHOTO AGENCY
chain of big-box stores called there is plenty of she banned what

CONTENTS Markets Digest..... B6 Ito-Yokado that originally fruit salad. Instead of they couldn’t have.
Arts & Ent............. A12 Money & Inv...... B5-8
Books...................... A7-9 Opinion.............. A10-11
formed the company’s core. meat, eggs and dairy “One of the core
Business & Tech. B1-4 Technology............... B3 The company now called for the 1- to 6-year- values of the school
Crossword.............. A12 U.S. News.................. A5 Seven & i Holdings was long olds, there is kale is building commu-
Heard on Street.... B8 Weather................... A12 centered on Ito-Yokado stores, from the preschool’s nity,” she said. “We
Mansion............ W9-15 World News....... A2-4
which founder Masatoshi Ito garden and cashew all eat together.”
€3.20; CHF5.50; £2.00; built on a U.S. model selling milk made from This is a gentle
U.S. Military (Eur.) $2.20
groceries, clothes and house- scratch. place where 92 chil-
hold items. Originally that This sought-after dren play barefoot to
company operated 7-Eleven school in an increas- Vegan lentil soup feel a connection to
stores only in Japan. ingly hip city is un- their environment
In 1991, the Japanese com- usually committed to the goal of and the air often smells like pep-
pany known then as Ito- getting children to eat their veg- permint from aromatherapy. RISING TENSIONS: Students in Dhaka, Bangladesh’s capital,
Yokado acquired the U.S. oper- etables. The Scandi School, as it Classrooms have bowls of pine protested the speed of an investigation into a young woman’s
s Copyright 2016 Dow Jones & ator of 7-Eleven stores. Today, is called, is one of the few vegan cones, seashells and rocks for death last month amid a surge in religious and political violence. A4
Company. All Rights Reserved
the global 7-Eleven business is preschools in the U.S. toys.
Please see CLASH page A2 The school didn’t start out Please see VEGAN page A6
A2 | Friday - Sunday, April 8 - 10, 2016 THE WALL STREET JOURNAL.
WORLD NEWS
After ISIS, Iraqi City Slowly Regains Normalcy aren’t as prominent as last
year. But they still lay down
the law, even though the
Sunni-led provincial govern-
ment in Tikrit has re-estab-
lished its own police forces.
In recent months, there
have been numerous kidnap-
MIDDLE EAST CROSSROADS pings and murders, some of
YAROSLAV TROFIMOV them, according to Tikrit offi-
cials, linked to members of
these militias.
TIKRIT, Iraq—If you dis- “Yes, the displaced families
count the flattened govern- have returned. But now there
ment buildings and the sectar- is a feeling that another occu-
ian graffiti daubed by Shiite pation has begun,” complained
militias on almost every wall, Salim al-Jabouri, the speaker
YAROSLAV TROFIMOV/THE WALL STREET JOURNAL

Tikrit looks almost like a nor- of Iraq’s parliament and one of
mal Iraqi city these days. the country’s main Sunni poli-
Merchants sell fresh toma- ticians.
toes and onions at the market. Moeen al-Kadhimi, a senior
Men sip sweet tea from small commander with the Badr Shi-
glasses in kebab restaurants. ite militia, said that accusa-
Reopened tions against Popular Mobili-
shops display zation Forces “are made by
toys and those who would have pre-
cheap, Chi- ferred for [Islamic State] to
nese-made stay in Tikrit.”
clothes. There It is these forces that
is electricity, helped restore normalcy, and it
mobile-phone services and, in Former Tikrit residents wishing to return lined up last month at a checkpoint operated by Shiite militias at an entrance to the city. is because of their involvement
most cases, running water. that Tikrit—unlike bombed-out
Tikrit University, its campus ternational backers as a suc- Overwhelmingly Sunni been destroyed by U.S. air- at any moment.” Ramadi—has been spared de-
once used as a military base, cess story in the fight against Tikrit largely emptied out af- strikes, its residential areas Ammar Abu Taher, who re- struction and could be repopu-
has resumed its courses with the militant group. ter Islamic State seized it in have survived. According to cently reopened his small cur- lated, Mr. Kadhimi added.
most of the 23,000 students After all, what is happening June 2014, massacring some provincial officials, nearly 95% rency-exchange and realty
F
back in attendance. here may be the best-case sce- 1,500 Iraqi Shiite soldiers at of Tikrit’s families have reset- business in central Tikrit, said or now, there are no
nario of what awaits Mosul, the Camp Speicher base just tled in the city in recent that business was slow. “The signs local resentments
T
he hometown of former the only one of these three outside. Many residents es- months. wealthy people are afraid and are going to turn violent.
dictator Saddam Hus- provincial capitals still in Is- caped to the relative safety of “What was really humiliat- have not come back yet,” he The city, residents and local
sein, Tikrit was one of lamic State’s hands, and other Kurdish-controlled cities such ing was to be a refugee in Er- said. “There is no money and officials say, is simply too trau-
the three capitals of Iraq’s pre- areas under the group’s sway. as Erbil in northern Iraq. bil, and what people really no jobs.” matized by the recent exodus.
dominantly Sunni provinces to “Tikrit gives us hope. I Unlike Ramadi, the third care about now is that they His return permit, like that “The most important thing
fall to Islamic State. Liberated can’t wait for the time when I, provincial capital, Tikrit was have been able to return to of Mr. Hadeed’s, had to be vet- is to deal with this situation
a year ago after 10 months un- too, can return to normal life only moderately damaged in their homes,” said Nofal Ha- ted by the Shiite militias, offi- pragmatically,” said Ahmad
der Islamic State’s bloody rule, in my home area,” said Nofal the months of fighting that deed, an anesthesiologist at cially known as Popular Mobi- Alkareem, the chairman of the
Tikrit is now—despite resi- Ibrahim, a student of Arabic at followed its occupation. the only one of Tikrit’s three lization Forces, that helped provincial council. “With time,
dents’ complaints about job- Tikrit University. His home- Though many of Tikrit’s public hospitals that hadn’t been oust Islamic State and now the graffiti will be gone, the
lessness, insecurity, and mili- town of Hawija, a two-hour buildings, then serving as Is- bombed. “But I still have this control entrances to the city. Popular Mobilization will be
tia abuses—held up by the drive away, is still controlled lamic State command centers fear on my mind that I and my Based in Saddam’s former gone, and the tensions will
Iraqi government and its in- by Islamic State. and military positions, have family may have to leave again riverside palace, the militias also be gone.”
Kerry, Bahrain Chide SYRIA

Iran Over Provocation Continued from Page One
lamic State offensive, which
BY FELICIA SCHWARTZ Gulf Arab leaders and senior began late Tuesday.
officials to pledge military aid The assault appeared to be
MANAMA, Bahrain—U.S. and calm allies’ nerves about a response to setbacks to the
Secretary of State John Kerry Tehran as the nuclear deal north of al-Dumayr, where the
and Bahrain’s foreign minister neared completion. extremist group in recent
urged Iran on Thursday to On Thursday, about a year weeks has been dislodged from
stop escalating its provoca- after Iran and six world pow- the ancient city of Palmyra
tive behavior across the Mid- ers agreed on the parameters and the town of Al-Qaraytain.
dle East and pursue a more of the final nuclear accord, Mr. There was no immediate
constructive foreign policy Kerry and his counterpart in comment from the Syrian mili-
three months into the imple- Manama, Sheik Khalid bin Ah- tary on the fighting in al-Du-
mentation of the Iranian nu- med Al Khalifa, told reporters mayr.
clear deal. after a meeting Thursday But the media arm of the
The U.S., Bahrain and other morning that Tehran is fueling Iran-backed Lebanese militia
TASS/ZUMA PRESS
Gulf Arab countries have ex- conflicts across the region, in- Hezbollah, which has members
pressed increasing concern cluding in Syria and Yemen. in the area fighting on the side
about Iran’s continued missile “Today we are noticing two of the regime, said clashes
tests, its weapons shipments things that we kind have ex- continued on the outskirts of
to Houthi rebels in Yemen, and pected,” Mr. Al Khalifa said, the town and government
the participation of its Islamic outlining the views of Bahrain forces have turned back at- Devastation is left behind in towns like Al-Qaraytain that have been liberated from Islamic State.
Revolutionary Guard Corps and the Gulf Cooperation tempts by Islamic State to take
and Hezbollah fighters in the Council, a regional alliance of over a power plant in the area. mayr air base, killing more more than 70 airstrikes on the backed by Turkey and Western
Syrian war in support of the six Arab countries. At least 20 regime forces, than 50 people. town and surrounding areas, governments, according to the
Assad regime. “The missile program is including three officers, have Regime forces are congre- resulting in the deaths of at Local Coordination Councils, an
The chief U.S. diplomat is in moving forward with full sup- been killed since the start of gated on the outskirts of al- least 18 civilians on Wednes- umbrella body for opposition
Bahrain to consult with offi- port of the leadership of the the Islamic State offensive, Dumayr, while the town proper day, the activists said. activists across Syria. This was
cials from Bahrain and other Islamic Republic and we are which began with coordinated is controlled by rebels, most Rebels inside al-Dumayr also confirmed by the Syrian
Gulf Arab countries frustrated seeing the hegemonic inter- attacks, including suicide car notably fighters of the Army of later clashed with the Sadiq National Council, one of the
by Tehran’s policies. ventions through proxies in bombings on checkpoints and Islam, one of the largest, rela- Brigade to try to drive them principal opposition bodies.
Mr. Kerry is laying the several parts of our region military bases around al-Du- tively moderate groups in the out from town. Activists posted on the In-
groundwork for meetings be- continuing unabated,” he mayr, according to the Syrian Damascus area. Antigovern- On a separate front, Islamic ternet photographs and video
tween President Barack Obama added. Observatory for Human Rights. ment activists said the Sadiq State on Thursday lost control footage of rebel fighters inside
and Gulf Arab leaders in Ri- Iran didn’t immediately re- Islamic State on Wednesday Brigade, a group in al-Dumayr of the town of al-Raiee in north- the town and at a complex of
yadh this month. spond to a request for com- claimed a suicide car bomber allied to Islamic State, partici- ern Aleppo province, close to grain silos nearby. Their au-
Mr. Obama held a meeting ment on the criticism in Ma- targeted a regime military pated in the initial assault. the Turkish border, following thenticity couldn’t be indepen-
in Washington last year with nama. convoy coming out of al-Du- The regime responded with clashes with rebel groups dently verified.
CLASH ment to delivering results for

shareholders.” In a March call
with reporters after the letter
was sent, Mr. Loeb said he
government, which took effect
in June 2015, called on compa-
nies to appoint outside direc-
tors and pay more heed to
edly voted down the fund’s
proposals for even higher divi-
dends.
In January, outside board
board. Mr. Suzuki’s camp said
it sought the founder’s ap-
proval for Thursday’s board
motion, but Mr. Ito refused to
Continued from Page One would be concerned if Mr. Su- shareholder concerns. members at Sharp Corp. give it for reasons that weren’t
fully owned by Seven & i Hold- zuki’s son, who serves as chief Akira Kiyota, CEO of the helped nudge the Japanese clear. A spokeswoman said he
ings, and it has more than information officer of Seven & company that runs the Tokyo electronics maker toward a wasn’t available to comment.
58,000 convenience stores in i Holdings, received an edge in Stock Exchange, said in an in- higher bid from Taiwan’s Hon
Japan, North America, China the choice of a successor. “This terview that the board vote of Hai Precision Industry Co. THE WALL STREET JOURNAL.
and elsewhere. is not a dynasty. This is a cor- Seven & i Holdings was an ex- when Sharp management was
YUYA SHINO/REUTERS
Europe Edition ISSN 0921-99

Mr. Loeb has said Seven & i poration.” ample of outside directors’ leaning toward a takeover by a The News Building, 1 London Bridge Street,
London, SE1 9GF
Holdings should shed the big- The elder Mr. Suzuki on growing influence, an idea the Japanese government-con-
box stores and focus on conve- Thursday denied that he exchange has helped promote trolled fund, people familiar Thorold Barker, Editor, Europe
Bruce Orwall, Senior Editor, Europe
nience stores globally. And he wanted his son as a successor. in Japan. “Governance is work- with the talks have said. Hon Cicely K. Dyson, News Editor, Europe
praised the head of the conve- In a statement Thursday, ing,” he said. Hai, also known as Foxconn, Margaret de Streel, International Editions Editor
Darren Everson, Deputy International Editor
nience-store business in Japan, Toshifumi Suzuki, on Thursday. Mr. Loeb said that “we are While the trend is still at an ultimately won the deal.
Ryuichi Isaka, calling Mr. Isaka pleased to see that the [Seven early stage, a number of activ- On Thursday, Seven & i Joseph C. Sternberg, Editorial Page Editor
a natural candidate to succeed The vote was 7-6 in favor, with & i board’s] succession plan- ist investors are getting in- Holdings posted results for its Anna Foot, Advertising Sales
Mr. Suzuki as the parent’s CEO. two abstentions. The motion ning will be based on merit volved in Japan, and outside fiscal year ended Feb. 29 that Jacky Lo, Circulation Sales
Stuart Wood, Operations
A successor to Mr. Suzuki failed because it needed a ma- and the best interests of share- board members are gaining a showed how the convenience- Jonathan Wright, Commercial Partnerships
wasn’t immediately named. A jority of the 15-member board. holders.” greater voice. store business has come to
company spokeswoman said Hours later, at a news con- In Japan, convenience Singapore-based activist in- dominate its profit while the Katie Vanneck-Smith,
Global Managing Director & Publisher
Mr. Isaka wasn’t available to ference, a sometimes emo- stores are ubiquitous, selling a vestor Effissimo Capital Man- big-box stores are struggling—
comment. tional Mr. Suzuki said he was wide variety of products such agement Pte Ltd. has been a point stressed by Mr. Loeb. Advertising through Dow Jones Advertising
Sales: Hong Kong: 852-2831 2504; Singapore:
Mr. Loeb has said that his stepping down. He described a as rice balls and toiletries. building up stakes in several 7-Eleven Japan reported oper- 65-6415 4300; Tokyo: 81-3 6269-2701;
fund, Third Point LLC, owns lengthy effort to get Mr. Isaka They have expanded into ser- companies. It now owns 8.2% ating income of slightly more Frankfurt: 49 69 29725390; London: 44 207
842 9600; Paris: 33 1 40 17 17 01; New York:
hundreds of millions of dollars to quit that ultimately failed. vices, allowing customers to of Dai-ichi Life Insurance Co., than $2 billion, while Ito- 1-212 659 2176
in common shares of Seven & i Mr. Suzuki said that in light of pay utility bills and buy tickets one of Japan’s largest insurers, Yokado posted an operating
Printers: France: POP La Courneuve; Germany:
Holdings. The investor has the turmoil, he no longer felt to concerts. Mr. Suzuki helped and 30% of shipper Kawasaki loss $128 million. Dogan Media Group/Hürriyet A.S. Branch; Italy:
made a name for himself in re- worthy of continuing in the develop the concept of flood- Kisen Kaisha Ltd., according to Ito-Yokado founder Mr. Ito, Qualiprinters s.r.l.; United Kingdom: Newsprinters
(Broxbourne) Limited, Great Cambridge Road,
cent years by challenging Sony top roles. He has served as ing urban areas with small regulatory filings by the inves- 91, remains honorary chairman Waltham Cross, EN8 8DY;
Corp. to restructure unprofit- CEO and chairman of Seven & stores, typically open 24 hours, tor on Thursday. of Seven & i Holdings, al- Registered as a newspaper at the Post Office.
able units and urging indus- i Holdings since 2005. and carefully managing inven- Japan Tobacco Inc., one of though he is no longer on the Trademarks appearing herein are used under
license from Dow Jones & Co.
trial-robot maker Fanuc Corp. Mr. Suzuki said the board tory of the 2,000 or 3,000 the world’s largest cigarette ©2015 Dow Jones & Company. All rights reserved.
to raise dividends—with some would have to consider his items people are most likely to makers, has steadily raised Editeur responsable: Thorold Barker M-17936-
CORRECTIONS
2003. Registered address: Avenue de Cortenbergh
success in both cases. successor as part of a broader need. dividends and last year an- 60/4F, 1040 Brussels, Belgium
The 7-Eleven dispute came management revamp. The clash between Mr. Su- nounced a share buyback un-
to a climax Thursday morning,
when the Seven & i Holdings
Mr. Loeb said in a March 27
letter to Seven & i Holdings’
zuki and Mr. Loeb reflects
broader changes in corporate
der pressure from the Chil-
dren’s Investment Fund, a
AMPLIFICATIONS NEED ASSISTANCE WITH
YOUR SUBSCRIPTION?
Readers can alert The Wall Street
board met to consider a pro- directors: “Mr. Isaka should be governance roiling Japanese London-based activist hedge Journal to any errors in news By web: http://services.wsje.com
articles by emailing By email: [email protected]
posal backed by Mr. Suzuki to rewarded—not demoted—for business. A corporate-gover- fund. Japan Tobacco share- [email protected]. By phone: +44(0)20 3426 1313
oust Mr. Isaka from his job. his performance and commit- nance code pushed by the Abe holders, however, have repeat-
THE WALL STREET JOURNAL. Friday - Sunday, April 8 - 10, 2016 | A3
WORLD NEWS
Panama Papers Hold Sway Putin Dismisses
Chairman of Austrian
bank and a Norwegian
Graft Allegations
company are latest
casualty of the leak In the Reports
OSLO—The latest fallout BY ANDREY OSTROUKH proud of his friend, saying
from the leak of the so-called that Mr. Roldugin spent al-
Panama Papers this week are MOSCOW—Russian Presi- most all the money he makes
the resignation of the chair- dent Vladimir Putin said there on acquiring musical instru-
man of a state-owned Austrian was no “element of corrup- ments for Russia.
HALLDOR KOLBEINS/AGENCE FRANCE-PRESSE/GETTY IMAGES
bank and revelation of more tion” in reports that placed his “He is not only a musician,
details of a corruption scandal close associates at the center he’s an honored artist,” Mr.
at Norway’s Yara Interna- of offshore transactions. Putin said.
tional. Speaking on national televi- The Kremlin earlier this
sion Thursday from a media week dismissed allegations
By Kjetil Malkenes forum in St. Petersburg, Mr. stemming from the release of
Hovland and Monica Putin said that he wasn’t men- the papers as a propaganda
Houston-Waesch tioned personally in the so- campaign.
called Panama papers—leaked Russian newspaper Novaya
Michael Grahammer, chair- records from a Panamanian Gazeta, which participated in
man of Hypo Landesbank law firm that specializes in the investigative project, came
Voralberg, stepped down from offshore holding companies, under bureaucratic scrutiny
his post suddenly late according to the International following publication of the
Wednesday, citing pressure Consortium of Investigative report: Artyom Kiryanov, a
from the media over the Journalists—and accused member of Russia’s Civic
bank’s alleged ties to offshore Iceland’s prime minister resigned on allegations in the papers. A successor, above, was named Thursday. those who released the infor- Chamber, asked Russian tax
financial accounts. mation of trying to destabilize authorities to inspect the pa-
The bank on Monday con- allegedly showing offshore The Norwegian company, mainly in former Soviet Union Russia. per to see if it had accepted
firmed media reports that holdings of scores of public which was engulfed in a wider countries, between 2006 and Allegations that Mr. Putin’s any foreign grants for the in-
showed it had ties to offshore figures and commercial enti- corruption investigation in 2010. The payments to the Eu- inner circle was involved in vestigation.
entities, including in Liechten- ties across the world. 2011, said police have known rochem executives were in- offshore transactions worth at The Civic Chamber is a gov-
stein. Those reports were The prime minister of Ice- about the Eurochem payments cluded in those $15 million, least $2 billion have featured ernment-sponsored civil-soci-
based on a flurry of docu- land resigned from his post for years. “This information Yara said Thursday, adding prominently in media reports. ety group. Novaya Gazeta pub-
ments allegedly leaked from a earlier this week after the leak has been investigated by the that it had refrained from us- But while the reports lished comments made by Mr.
Panama-based hovllaw firm showed his family had hold- Norwegian police,” a Yara ing Eurochem’s name at the caused social discontent and Roldugin in which he said that
Mossack Fonseca, which have ings in an offshore company. spokeswoman said. time because of the police in- have led to investigations in he couldn’t comment on the
been dubbed the Panama Pa- In Austria, the Hypo The broader police investi- vestigation. the West, the leaks were specifics of the leaks, but that
pers. Landesbank said its financial gation concluded in 2014 when Norwegian police confirmed played down in Russia and are he had been connected to
Mr. Grahammer, who had dealings were subject to re- Yara agreed to pay Norway’s that it had been aware of unlikely to affect Mr. Putin’s some of the businesses named
served as chairman since 2012, quirements from the country’s biggest-ever corporate fine of Yara’s payments to Eurochem strong approval ratings. Rus- in the papers.
denied any wrongdoing. financial market watchdog, 295 million Norwegian kroner executives for years, but said sian state media largely ig- Nadezhda Prusenkova,
Meanwhile, Norwegian FMA, as well as the Austrian ($35.6 million) after admitting further investigation would be nored them, instead focusing spokeswoman for the newspa-
chemical company Yara Inter- central bank. In addition, the to paying bribes in Libya, In- required to establish whether on Ukraine-related transac- per, said Mr. Kiryanov’s re-
national said it had made “un- bank said it took into consid- dia and Russia. the transactions amounted to tions divulged in the same marks were a mere denuncia-
acceptable payments” to two eration the sanctions list of In a related case, a group of bribery. documents. tion. “This [statement] has not
executives at a Russian-owned the U.S. Office of Foreign As- former Yara executives were The payments hadn’t been The leaked information affected our work so far in any
phosphate producer, confirm- sets Control, although it isn’t last year sentenced to prison thoroughly investigated by the places Sergei Roldugin, a cel- way,” she said.
ing a report partly based on directly applicable in Austria. for corruption, but have ap- police because they went from list and a childhood friend of Leonid Gozman, a demo-
the Panama Papers. The bank also pledged to pealed. Switzerland to Russia and Mr. Putin, at the center of a cratic activist who served as a
Yara, 36.21%-owned by the review and present a summary Yara said in addition to lacked clear links to Norway, a network of other businessmen government adviser in the
Norwegian state, confirmed on of its activities, but declined alerting the police about the police spokeswoman said. and associates of the presi- past, said Mr. Putin’s reaction
Thursday a report by Norway’s to say when the review would payments to Eurochem in Eurochem wasn’t available dent. to the allegations seemed to
Aftenposten newspaper, based be made public. 2011, it had commissioned an to comment. Aftenposten in its “Here’s some friend of the be addressed to people outside
partly on the Panama Papers. In Norway, Yara said it had external investigation by a report said the company had Russian president, he did Russia.
The acknowledgment by made “unacceptable pay- Norwegian law firm that un- declined to comment. The Zug, something, which probably “Those facts that become a
Yara and the management ments” to executives at Euro- covered more than $15 million Switzerland-based fertilizer has some corruption element,” shock in the West are per-
shuffle at Hypo Landesbank chem Mineral & Chemical Co., in payments from a Yara sub- company is controlled by Rus- Mr. Putin said. “What [ele- ceived as normal in Russia, as
show the repercussions of the a producer of phosphates, sidiary in Switzerland to peo- sian businessman Andrey Mel- ment]? There is none.” there is no feeling that all peo-
leak of millions of documents without stating how much. ple connected with suppliers nichenko. Mr. Putin added he was ple are equal,” he said.
Co-Founder Defends Mossack Fonseca Cameron Profited From

BY KEJAL VYAS Panama’s president, Juan
Carlos Varela, on Wednesday
Father’s Offshore Fund
PANAMA CITY, Panama— night defended transparency BY JENNY GROSS fund, Blairmore Holdings Inc.
One of the founders of the law reforms the government en- His spokeswoman said Mon-
firm at the center of the “Pan- acted last year and said the LONDON—British Prime day the matter was private.
ama Papers” leak of secret media storm was casting a Minister David Cameron said Under pressure the next two
documents on Wednesday de- negative light on the country. Thursday that he did benefit days, his office said the prime
fended his firm, Mossack Fon- “The Panama Papers,” he from an offshore fund set up minister, his wife and children
SUSANA GONZALEZ/BLOOMBERG NEWS
seca, and said that he ex- said, “are not a problem of our by his late father, in response don’t currently benefit from
pected few changes to his country but of many coun- to calls for more disclosure any offshore funds and
business model despite world- tries.” about his family’s links to a wouldn’t in the future, but
wide scrutiny. Mr. Varela said Panama fund cited in the leaked files provided no further details.
In his first in-depth inter- would form a commission of of a Panamanian law firm. “Of course I did own stocks
view since reports of the national and international ex- Mr. Cameron told ITV News and shares in the past, quite
leaked documents were pub- perts to evaluate the country’s he previously had a stake in naturally because my father
lished, Jürgen Mossack said regulations governing financial his father’s trust but sold it in was a stockbroker,” he said in
his firm did nothing wrong by and legal services. Earlier this 2010 before he became prime Thursday’s television inter-
selling some 240,000 shell week, Panama’s attorney gen- minister. view. “We owned 5,000 units
companies registered in low- The building housing the law firm in Panama City, Panama. eral said the office would Mr. Cameron’s father, Ian in Blairmore Investment Trust,
or no-tax territories around launch an investigation into Cameron, was named in the which we sold in January
the world. armchair on the second floor sortium of Investigative Jour- the company. leaked documents from Pan- 2010. That was worth some-
The law firm works through of Mossack Fonseca’s offices in nalists, showed that the firm’s Mr. Mossack and the head ama-based law firm Mossack thing like £30,000,” or around
intermediaries and can’t keep Panama City’s financial dis- clients included relatives from of legal affairs for his law firm, Fonseca as having helped set $48,000 at the time.
track of how the offshore enti- trict, spoke just days after the high reaches of China’s Sara Montenegro, said in the up an offshore fund in the He denied his father’s fund
ties that it sells are used, he some 400 journalists from government to associates of hourlong interview that they early 1980s. The existence of was set up with the purpose of
said. dozens of countries simultane- Russian President Vladimir Pu- welcomed further regulations the offshore fund became pub- avoiding tax. Rather, it was set
“We’re not going to stop the ously released stories based on tin to the money man for Syr- and scrutiny of their business. licly known in 2012, but the up after foreign-exchange con-
services and go plant bananas leaked documents from the ian dictator Bashar al-Assad. They noted, however, that they renewed focus this week has trols were relaxed so people
or something,” the 68-year-old firm that showed how it cre- The trove of 11.5 million in- had yet to be contacted di- prompted politicians to push who wanted to invest in dol-
Mr. Mossack said. “People do ated dummy companies and dividual files were fed to a rectly by local authorities. Mr. Cameron to detail the full lar-denominated shares and
make mistakes. So do we, and offshore accounts where the newspaper in Munich that “At this point in time I nature of the fund. companies could do so, the
so does our compliance de- rich and powerful could se- then shared it with ICIJ. The would say there shouldn’t be Until Thursday, Mr. Cam- prime minister said, adding
partment. But that is not the cretly park their money. Wall Street Journal hasn’t in- repercussions,” Mr. Mossack eron had declined to disclose that it was reported to U.K.
norm.” Documents obtained by the dependently verified the docu- said, “but I wouldn’t say that whether he had ever benefited regulators and properly au-
Mr. Mossack, sitting in an group, the International Con- ments. there won’t be any.” from his father’s offshore dited each year.
Dutch ‘No’ Vote on Ukraine Reverberates Across the Continent

BY LAURENCE NORMAN Dutch Prime Minister Mark Russia, which has long ing the issues were com- ally apply their part of the
Rutte, who is trailing the sought to scuttle the pact, said pletely different. deal, pending formal ratifica-
The fallout from the anti-EU and anti-immigration the vote represented a Euro- Yet UK Independence tion. The final hurdle was in
Dutch vote rejecting the Eu- Party of Freedom in most pean rejection of Ukraine’s Party leader Nigel Farage, the Netherlands.
ropean Union’s trade and po- opinion polls, with national pro-Western political class. who is campaigning for a Brussels has no imminent
litical agreement with elections due next year. The collateral damage British exit, predicted that deadline for completing rati-
Ukraine could have ramifica- Party of Freedom leader from the vote could extend the Dutch vote may provide fication.
ANDREW MILLIGAN/ZUMA PRESS
tions for the entire bloc, Geert Wilders echoed the to Ukraine’s bid to win visa- the “hors d’oeuvre” for the One option, said Jan
even though it isn’t likely to views of other anti-Brussels free access for its 40 million British “main course.” Techau, director of Carnegie
derail the ac- firebrands, calling the vote citizens to the EU, one of Speaking in the Nether- Europe, would be for EU lead-
BRUSSELS cord itself. “the beginning of the end of Ukrainian President Petro Po- lands this week before the ers to attach a statement to
BEAT The “no” the EU.” roshenko’s biggest priorities. vote, he said a Dutch “no” the accord asserting that it
camp’s clear On Thursday, Europe’s That move needs backing by would encourage British vot- doesn’t pave the way for
victory in leaders were in damage-con- all EU governments, includ- ers who dislike the EU but Ukraine to join the bloc—a
Wednesday’s referendum trol mode. ing from the Netherlands. worry about Britain striking concern of some Dutch voters.
further knocks the confi- Mr. Rutte asked for time The vote could even com- UKIP leader Nigel Farage. out on its own. But reopening the accord
dence of a 28-member bloc to reach out to Dutch law- plicate the EU’s deal with “A no vote in this referen- could delay ratification by
already besieged with eco- makers and regional part- Turkey to help stem the con- no to Brussels. His govern- dum will send a big message two or three years, said
nomic, political and security ners before deciding on his tinent’s migration crisis. ment was key to keeping Ro- to the British electorate that Hylke Dijkstra, assistant pro-
crises, and could hamper its next steps. “It is clear that That deal is premised on the mania and Bulgaria outside we are not alone in thinking fessor of political science at
efforts to reorient the for- ratification cannot just pro- EU speeding work on Tur- Europe’s border-free travel something has fundamen- the Netherlands’ Maastricht
mer Soviet republic of ceed as if nothing has hap- key’s EU membership bid zone, known as Schengen. tally gone wrong in the di- University.
Ukraine toward the West. pened,” the government said. and, meanwhile, reaching a Yet the biggest fallout rection of the European It would also give Russia
More broadly, the result European officials in visa-free travel deal for could be on the U.K.’s June Union,” he said. more time to try to block the
could provide a boost to the Brussels stressed the EU- Turks. Both are likely to 23 referendum. Amid such uncertainty, the deal.
exit camp in the U.K., which Ukraine agreement remained spark opposition in the U.K. Prime Minister David future of the EU-Ukraine deal —Maarten van Tartwijk
is holding a much bigger ref- provisionally in effect and Netherlands. Cameron brushed off sugges- itself looks relatively secure. in Amsterdam and
erendum on EU membership pledged not to abandon Mr. Rutte has shown in re- tions the Dutch vote would All EU governments Laura Mills in Moscow
in June. It also is a blow to Ukraine. cent years he’s willing to say boost the “Brexit” camp, say- agreed in 2014 to provision- contributed to this article.
A4 | Friday - Sunday, April 8 - 10, 2016 HK JP KO ML SI IN UK FR MN PR THE WALL STREET JOURNAL.
WORLD NEWS
1MDB Report Spares Malaysia’s Najib

BY TOM WRIGHT way; so we could attribute shortcomings, but said “there conduct investigation into
blame on [the board] but ex- is more than sufficient damn- Shahrol and the management.’’
A Malaysian state develop- onerate the prime minister. It ing evidence to indict not only Mr. Shahrol, who was chief
ment fund’s board of directors means nothing,” said Zaid the entire top management executive of 1MDB from 2009
offered to resign after a report Ibrahim, a former cabinet min- but also the entire board of di- until early 2013, released a
that found billions of dollars ister and leader in an alliance rectors.” statement via state news
went missing but which made opposed to Mr. Najib. Hasan Arifin, the commit- agency Bernama saying there
no mention of Prime Minister In response to the report, tee’s head, said that “PAC calls was no wrongdoing under his
Najib Razak, who played a key which recommended that se- upon the authorities to study watch.
role in the fund’s decisions nior management face a crimi- the report very carefully, and Critics of the fund have
and has been the target of nal investigation, 1MDB’s carry out the necessary inves- questioned why the committee
criticism over the scandal. board of directors offered its tigations. The law must be ex- hasn’t focused more on Mr.
The findings of the parlia- collective resignation. “The ercised if any wrongdoing is Najib, who played a key role at
ment’s Public Accounts Com- board has successfully steered found.” 1MDB, including firing audi-
OLIVIA HARRIS/REUTERS
mittee, released Thursday, 1MDB through a uniquely chal- The report said that after tors and authorizing transfers
mark the first time a Malay- lenging period and trusts that, reviewing findings from Ma- of hundreds of millions of dol-
sian investigating body has with the release of the PAC re- laysia’s auditor-general and lars, according to board min-
leveled fraud allegations at port, a line has been drawn,” explanations from 1MDB, the utes reviewed by the Journal.
1Malaysia Development Bhd., the board said in a statement. committee “is of the view that “This is to be expected
or 1MDB, which is the focus of 1MDB has said previously that there are certain constraints since the PAC cannot implicate
corruption probes in Malaysia it has cooperated with author- A report into the 1MDB scandal made no mention of Mr. Najib. and weaknesses at 1MDB’s the elephant in the room, Mr.
and at least six other nations. ities and would continue to do management and board of di- Najib,” said James Chin, head
The report appeared to take so. On Thursday, the fund ing from 1MDB and moving via on the report’s recommenda- rectors level.’’ of the University of Tasma-
pressure off Mr. Najib, who again denied any wrongdoing. a web of intermediary entities. tions. We must ensure that “In particular, PAC is of the nia’s Asia Institute. “On the
founded 1MDB in 2009 and The Wall Street Journal, Mr. Najib has denied lessons are learned, and action view that former 1MDB CEO, surface, it looks like the previ-
heads its separate board of ad- citing Malaysian and global in- wrongdoing or taking money will be taken if any evidence Shahrol Azral Ibrahim Halmi, ous management has been
visers, prompting critics to vestigations, has reported how for personal gain. On Thurs- of wrongdoing is found.” needs to take responsibility of pushed under the bus.”
suggest the findings and the investigators have found over day, he said the report “identi- Tony Pua, a member of the the weaknesses and con- —Celine Fernandez
directors’ offer to resign were $1 billion was transferred to fied weaknesses in 1MDB’s committee and the opposition straints,’’ the report said. “As and Yantoultra Ngui
designed to shield the prime Mr. Najib’s personal bank ac- capital structure and manage- Democratic Action Party, ac- such, the law enforcement in Kuala Lumpur
minister. “It’s all planned that counts, the majority originat- ment. We will study and act knowledged the report had agencies are being urged to contributed to this article.
Saudi Actress Riles Cairo With Police Abuse Charge

King Visits BY DAHLIA KHOLAIF
AND MATT BRADLEY
lems—like the ailing econ-
omy—that are chipping away at
Egypt as CAIRO—With a few soap-

opera roles to her name and
President Abdel Fattah Al Sisi’s
once-unshakable support base.
His office referred requests
Nations no apparent history of political

activism, aspiring actress/
singer Mirhan Hussein makes
for comment to the Foreign
Ministry, which didn’t respond.
The malaise building in
Boost Ties an unlikely frontwoman for the

campaign against police abuse
in Egypt.
Egypt is reminiscent of 2011,
when public rage over abuse of
power, widespread poverty
Saudi Arabia’s King Salman But her allegations that po- and a lack of political free-
arrived in Egypt on Thursday lice beat and molested her and doms incited a mass revolt
MAHMOUD KHALED/AGENCE FRANCE-PRESSE/GETTY IMAGES

for a rare foreign visit in- drenched her in urine while that overthrew then-President
tended to cement the relation- she was detained last month, Hosni Mubarak, according to
ship between the two major along with photos she posted government critics and politi-
Arab powers, as the kingdom on Facebook “for the truth to cal and human-rights activists.
courts greater support from be known,” became a cause cé- “It is not a matter of an
its ally on regional security lèbre on TV talk shows, trig- abusive, low-ranking police-
amid tensions with Iran. gering some rare criticism of man or officer. It is a matter of
the police by normally pro-re- a strategy in this apparatus
By Margherita Stancati gime celebrities and media that wants to return” to old
in Dubai personalities. ways, said TV host Wael al-
and Tamer El-Ghobashy The Interior Ministry, which Ibrashi, once a stalwart loyal-
in Cairo oversees the police, didn’t re- ist who has recently taken to
spond to requests to comment criticizing the regime. “The re-
King Salman’s first official on her allegations. It said turn they seek is through ter-
trip to Egypt is also intended shortly after her March 1 de- rorizing people, wielding pis-
to show backing for Egyptian tention that prosecutors were tols, abuses and violations.” Masked Egyptian police patrolling the streets in the southern Cairo Giza district in January.
President Abdel Fattah Al Sisi investigating charges that she In a television interview in
and shore up his country’s first refused to stop at a police February, Mr. Sisi acknowl- prosecution, measures that 465 deaths, including 137 peo- little explanation for his arrest
struggling economy. Mr. Sisi checkpoint, then assaulted of- edged “individual incidents” of await parliamentary approval. ple in police custody, and more or severely battered corpse,
greeted the Saudi monarch at ficers and had been driving abuse and blamed the security Within months of over- than 640 cases of torture, ac- hundreds of young men pro-
Cairo’s international airport in drunk—charges she denied. apparatus’s problems on “on- throwing Egypt’s first demo- cording to the local human- tested at a police station there.
the afternoon, kicking off For a long time, police bru- going turbulence” after years cratically elected president in rights group al-Nadeem Center A criminal trial is now under
high-level talks. tality was ignored by many of unrest. July 2013, Mr. Sisi’s security for Rehabilitation of Victims of way for nine policemen, in-
The two countries are ex- elite Egyptians, who considered “Striking a balance between forces had shot dead more Violence. The Interior Ministry cluding four officers, all of
pected to sign $22 billion in it a necessary evil to suppress human rights and security than 1,000 protesters and im- has repeatedly affirmed its re- whom have pleaded not guilty.
deals, including $20 billion to Islamist political activists and measures is a sensitive and prisoned tens of thousands of spect to human rights, and de- Mr. Sisi appears to be feel-
finance Egypt’s petroleum the country’s vast underclass. critical task that requires a lot mostly Islamist opponents, ac- nied any wrongdoings. ing pressure. In his most recent
needs and a $1.5 billion pack- But now high-profile cases of work from us and closer su- cording to rights groups in- Much of that was largely ig- speech, the president begged
age to develop the Sinai re- such as Ms. Hussein’s, along- pervision,” he said, a thought cluding Human Rights Watch nored by Egyptian media and Egyptians to tune out the
gion, Egypt state media said. side the killing of an Italian he has reiterated on several and Amnesty International. the public. growing ranks of his critics.
King Salman’s visit to Egypt student whose body, according occasions since. The military-led govern- That began to change on If “you truly love Egypt, I’m
marks the start of two weeks to Italian and Egyptian offi- He also has demanded ment said this was part of a Nov. 24, when a 47-year-old telling all Egyptians who are
of crucial international diplo- cials, showed signs of torture, harsher penalties for abusive war it waged on terrorism. unemployed man died in police listening to me: ‘Listen to my
macy for the leader of the are pushing the issue into the policemen, including dismissal Last year, Egypt’s security custody in the southern city of words only,’ ” he said Feb. 24.
Arab world’s pre-eminent open. That has added to prob- from the force and possible services were responsible for Luxor. After the police offered “Only mine. I’m dead serious.
power. President Barack
Obama is scheduled to travel
to Saudi Arabia to attend a
summit on April 21 of the
Saudi-led bloc of Gulf Arab na-
World
Nazimuddin Samad, a student
of Jagannath University in
southern Dhaka, was attacked
ECB Open to
tions. Secretary of State John
Kerry held talks with officials Watch by unidentified assailants not far
from his campus on Wednesday
Stimulus but
of one of those Gulf nations,
Bahrain, on Thursday.
The trip to Egypt comes as
night and was left bleeding on
the street, police said.
Mr. Samad died after he was
Split on How
Saudi Arabia’s Sunni Muslim taken to a local hospital, accord- BY TOM FAIRLESS
BELGIAN FEDERAL POLICE/REUTERS
monarchy pursues a more ag- GERMANY ing to police and doctors.

gressive foreign policy, assert- Bangladesh has experienced a FRANKFURT—Top Euro-
ing its leadership in the Mid-
Cologne Sex Assault wave of religiously motivated vi- pean Central Bank officials on
dle East and striving to Suspects Identified olence, including attacks against Thursday underlined their
contain the influence of Iran, Nearly all of the suspects in foreigners, ethnic minorities and willingness to launch fresh
its Shiite rival for regional the mass sexual assaults and secular bloggers and activists. stimulus to bolster the euro-
power. thefts that occurred in Cologne Responsibility for most the at- zone’s weak economy, but the
A friendly and stable Egypt on New Year’s Eve were mi- tacks has been claimed by Isla- minutes of the bank’s latest
is a priority for the kingdom. grants and asylum seekers, local mist groups linked to Islamic policy meeting laid bare divi-
Along with its Persian Gulf al- authorities said Thursday in a BRUSSELS ATTACKS: Belgian authorities released fresh pictures State and al Qaeda. sions over just how to do that.
lies, the nation has poured bil- finding that is likely to rekindle of the suspected third attacker in last month’s airport bombing Last year, at least four secu- ECB President Mario Draghi
lions of dollars into the coun- debate in Germany over how to and appealed to the public for help in finding the man. lar bloggers and a publisher said the central bank had no
try since Mr. Sisi came to handle the record numbers of were killed as well as an Italian shortage of tools available to
power in a 2013 military coup foreigners now in the country. about two-thirds of the suspects extra three days around Easter aid worker and a Japanese drive up stubbornly low infla-
and ousted Mohammed Morsi The finding, contained in a were from Morocco or Algeria— in a bid to save electricity. farmer. tion and would continue to do
of the Muslim Brotherhood, a preliminary report by Ralph an indication they weren’t repre- Venezuela is largely depen- —Syed Zain Al-Mahmood “whatever is needed.”
movement Saudi Arabia has Jäger, interior minister of the sentative of the broader group dent on hydroelectric power, and “The ECB does not surren-
long opposed because it saw it state of North-Rhine Westphalia, of recent refugees to Germany, its supply has been hit hard by VATICAN der to excessively low infla-
as a political threat at home. is the first official confirmation of which Syrians make up the the region’s drought. There are tion,” Mr. Draghi wrote sepa-
In return for aid, Riyadh ex- of police and victim testimonies largest contingent. frequent blackouts and dark
Pope to Meet rately in the bank’s annual
pects Mr. Sisi to increase sup- that originally blamed the at- —Zeke Turner neighborhoods have become in- Refugees in Greece report, which was published
port for Saudi Arabia, above tacks on mainly Arab-looking creasingly prone to crime. Gas Pope Francis will meet refu- on Thursday. He warned that
all on security matters, said men. VENEZUELA stations in parts of Venezuela gees on the Greek island of Les- this year would be “no less
Theodore Karasik, a Gulf- Out of 153 suspects involved operated only sporadically this bos next week, the Vatican said challenging” than the last for
based expert on regional geo- in the rampage outside Co-
Maduro Cuts Work week as sudden outages grew. Thursday, confirming a visit that the central bank.
political affairs. logne’s main train station on Week to Save Power Critics say the Friday closures promises to plunge the pontiff The eurozone’s inflation
Relations between the tra- New Year’s Eve, 97%, or 149, Venezuelan President Nicolás are the latest sign of the Vene- deeper into a heated European rate was minus 0.1% in March,
ditional allies hit snags last were foreigners, said the report Maduro said the country’s work- zuelan leadership’s growing des- debate over migration. far below the ECB’s target of
year over Egypt’s reluctance to submitted to state parliament in ers will get Fridays off for the peration and will cause another Hundreds of thousands of just below 2%, according to
commit more military assets Düsseldorf. Of those 149, 68 remainder of April and May in drag on growth. refugees, many fleeing conflict in the European Union’s statistics
to a Saudi led invasion in Ye- were asylum seekers, 47 had an his latest attempt to save power —Sara Schaefer Muñoz North Africa and the Middle agency.
men, leading to fears in Cairo “unknown” visa status, and an amid a severe drought and East, have arrived in Lesbos According to the minutes of
that the monarchy would stop additional 18 were in Germany growing energy crunch. BANGLADESH from Turkey in the past year. the March meeting, published
the aid payments that have illegally, according to the report. In a televised speech The island is now on the Thursday, some ECB policy
buttressed Egypt’s economy The attacks in Cologne, a city Wednesday night, the president
Student Killed Amid front line of a controversial EU makers were concerned about
and Mr. Sisi’s rule. known for its hospitality and col- called on Venezuelans “to join Surge in Violence program to deport illegal mi- pushing the date for hitting
Saudi Arabia “wants Egypt orful Carnival celebrations, this plan with discipline, with A Bangladeshi law student grants from Greece and return their inflation goal ever fur-
to be an active participant in shocked the country and ignited conscience and extreme collabo- who expressed secular views on- them to Turkey. The Vatican has ther into the future. They were
regional security operations, a debate about the risks from il- ration.” line was hacked and shot to criticized that plan and Pope in “broad agreement” over the
most notably around the king- legal immigration after about The Friday shutdowns come death in the capital Dhaka on Francis has made support for need for a “strong policy re-
dom’s periphery and to play a one million asylum seekers en- after Venezuela, which is already Wednesday, as the country grap- migrants and refugees a priority sponse,” but differences
larger role in the Islamic mili- tered the country last year. in the throes of a deep eco- ples with a surge in religious of his pontificate. emerged over which policy
tary alliance,” he said. According to the report, nomic crisis, closed offices for an and political violence. —Francis X. Rocca measures to deploy.
U.S. NEWS
Economists Trim
Growth Estimates
BY JOSH ZUMBRUN dent answered every question.
The average estimate of the
A rocky start to 2016 is tak- probability of a recession in the
ing its toll on the outlook for next year slid to 19% in this
U.S. economic and job growth month’s survey, down from 20%
this year. last month and 21% the month
While the stock market has before. Despite that decline, the
recovered much of the ground odds remain nearly double
lost earlier in the year, fore- their level of last summer.
casters in The Wall Street Nearly half of those polled
Journal’s monthly survey of see the biggest risk to the econ-
economists trimmed their es- omy coming from overseas.
timates for employment gains Weakness in Europe and Japan,
and economic growth as mar- as well as a slowdown in China,
ket volatility and signs of a have rattled financial markets.
cautious consumer leave the Increasingly, these risks
RICHARD DREW/ASSOCIATED PRESS

economy stumbling. aren’t just economic, but polit-
The average forecast in the ical. Economists are unsure
survey calls for growth in how China will respond to its
gross domestic product of 2.1% economic slowdown. They also
in the year ahead, down from are unsure about an unprece-
an estimate of 2.4% last month. dented move to negative inter-
The markdown was most dra- est rates being implemented
matic for the start of the year: by policy makers at the Bank
The economy likely grew at a of Japan and European Central
1.3% annual pace in the first Bank. And they are unsure of Labor-union members cheered for Democratic presidential candidate Hillary Clinton as she was introduced Monday in New York.
Unions’ Super PAC Stalls

quarter, down from an esti- the ramifications if the U.K.
mate of 2.1% a month ago. votes to leave the eurozone.
Economists also trimmed Economists are worried
their estimates for job growth. about risk from the U.S. politi-
They expect a monthly average cal system, too, where populist
of 185,000 jobs to be created presidential candidates have
in the year ahead, fewer than pledged dramatic overhauls of BY BRODY MULLINS death of Supreme Court Justice Labor unions began talking Meantime, midsize labor
the 190,000 estimated in last U.S. policies toward trade and AND MELANIE TROTTMAN Antonin Scalia, which has about coordinating their elec- unions inside the AFL-CIO
month’s survey. That would be immigration. A plurality of raised the possibility of a more tion efforts when the Supreme worry that handing over
a slowdown from the pace economists last month said A fight among labor unions union-friendly appointee suc- Court was considering a deci- greater control to the SEIU
over the past three months of the election of businessman over who would control a pro- ceeding him on the high court. sion that threatened to devas- and NEA would reduce their
about 210,000 jobs a month. Donald Trump or Vermont posed $50 million super PAC As negotiations continue, a tate the ability of unions to influence over the political
“Lackluster growth is a bigger Sen. Bernie Sanders could has slowed the creation of a group of unions that have en- collect dues from their public- spending, these people said.
risk than a full recession,” said pose a significant risk to the unified effort to boost the dorsed Democratic presidential sector members. Under the latest plan being
Lynn Reaser, an economist at economy next year. chances of labor-friendly Demo- front-runner Hillary Clinton Though the death of Justice discussed, unions would be re-
Point Loma Nazarene University. The range of doubt and crats winning the White House have quietly begun meeting to Scalia in February gave them a quired to contribute as much
Slow growth but no recession anxiety about these political and control of Congress in the coordinate helping her close out reprieve in that case, labor as $5 million to get a seat on
has been the story of the U.S. outcomes could cause consum- November election. the primary election. But be- leaders at the time were the board. Entities that con-
economy in recent years. It has ers and businesses to pause. A senior political strategist cause the AFL-CIO hasn’t found searching for ways to find sav- tribute smaller sums would
been nearly seven years since “Global economic uncer- for unions first laid out the plan consensus among its leaders to ings and to spend money more have less say over how the
the economy emerged from the tainty and political uncer- in February before dozens of endorse the former secretary of efficiently. One way to do so money is allocated. Officials
longest and deepest recession tainty at home could stall the union presidents and other la- state, the Clinton backers are was to combine their political also are talking with other pro-
since the Great Depression. economy,” said Sean Snaith, bor leaders at the winter meet- working without the help of the spending into one account. Democratic interest groups
While there has been no relapse director of the University of ing in San Diego of the execu- main engine that typically Officials said at the meeting and individuals about contrib-
into recession, hopes for a pe- Central Florida’s Institute for tive council of the AFL-CIO, the drives such collaborations. in February that a new super uting money to the entity.
riod of strong growth have been Economic Competitiveness. largest U.S. union federation. In a speech Wednesday at
dashed repeatedly. Some tentative signs of this But the efforts have been the Pennsylvania AFL-CIO con-
The Wall Street Journal’s have already emerged. Incomes delayed since then, in part
A big part of the union vote is concentrated vention in Philadelphia, Mrs.
survey of academic, business have been rising faster than over disputes about who in key presidential battlegrounds. Clinton said that as president
and financial economists has spending for three months as would receive credit for the she would help unions “stand
shown an acceleration of reces- Americans have increased their work done, according to peo- up to those forces trying to
sion fears since last summer, saving rate. U.S. businesses ple familiar with the talks. Bernie Sanders defeated Mrs. PAC would help limit the du- weaken the labor movement.
but the panel reckons that the also have seen profits decline. The Wall Street Journal Clinton Tuesday in the Wiscon- plication that exists when mul- “I need you to speak up and
risk of recession is lower than “Declining earnings for spoke with more than a dozen sin primary, ensuring the intra- tiple labor unions spend speak out, to your friends and
it was during the congressional businesses may cause sizable labor officials, campaign strat- party fight will continue. money on the same campaign neighbors,” she said.
debt-ceiling crisis in 2011 and cutbacks in outlays—including egists and others who de- Unions have been a potent at the same time. Mr. Sanders has said he
Europe’s fiscal crisis in 2012. in hiring and firing,” said Al- scribed the organizing efforts. force in getting Democrats Many of the roughly 50 la- would work to strengthen the
The Journal surveyed 69 econo- len Sinai, chief economist at Persuading union members elected even as their member- bor unions that are part of the labor movement. He helped
mists, though not every respon- Decision Economics. and their families to vote for ship has sharply declined over AFL-CIO were expected to par- lead the fight against free-
Democratic candidates could be decades. While one in five work- ticipate, as well as several large trade agreements and has
particularly challenging this ers were members of a union in labor unions that aren’t mem- backed a $15 federal minimum
year if the Republican presi- the early 1980s, last year just bers of the organization, such wage. Several unions have en-
dential nominee is businessman one in 11 were union members. as the Service Employees Inter- dorsed him, including the Na-
Donald Trump, who has drawn In the 2012 election, labor national Union and the Na- tional Nurses United, the Com-
support from working-class unions were responsible for tional Education Association. munications Workers of
white men and women, many $115 million of the donations While the union leaders America, a transit union and a
of whom are union members. to pro-Democratic super PACs, agreed that creating a super postal group. But Mrs. Clinton
Mike Podhorzer, the AFL- according to the nonpartisan PAC was a good idea, divisions has won most union endorse-
CIO’s political director, wouldn’t Center for Responsive Politics. emerged over how the entity ments so far.
LUKE SHARRETT/BLOOMBERG NEWS
comment on the specifics of the That amount was more than would be run. The SEIU and A big portion of the union
talks. When asked who has any industry group, except for NEA, which rank as the top vote is concentrated in key
agreed to participate, he said: the financial-services sector, spenders on political campaigns presidential battlegrounds
“That hasn’t been resolved yet.” which donated about $165 mil- in recent years, are reluctant to such as Ohio, Michigan, Illi-
Labor activists still have lion, mostly to super PACs turn over their political funds nois, Minnesota, Pennsylvania,
time to settle their differences, backing Republicans. to a new political organization Indiana and Wisconsin. Those
and the motivation to do so is Union leaders also seek to without retaining enough con- states hold more than one-
likely to rise as the race shifts persuade their members to vote trol over how the money was third of the electoral votes
to the general election. The for Democrats via visits to their going to be spent, according to needed to win the presidential
Forecasters have cut GDP expectations. Above, Cox Manufacturing. stakes grew greater after the homes and personal phone calls. people familiar with the talks. race.
U.S.
as from the Boko Haram ex-
tremist organization in Nigeria.
PAY A Viacom spokesman said
$17 million of Mr. Dauman’s
compensation came from a re-
Compensation Slip
Median pay for CEOs of
nies in the group—about 6% of
the total. All but two of the
women made more than the
Watch INDIANA
Groups Sue State Continued from the prior page
tention bonus he received
when renewing his contract
companies in the S&P 500 index S&P 500 median, and the high-
est-paid of them, Oracle Corp.
dian total shareholder return— last year. The bonus vests over $12 $10.8 million co-CEO Safra Catz, made $53.2
Over Abortion Law which includes reinvested divi- several years, and much of Mr. million. (Mark Hurd, her fellow
Indiana is being sued by the dends—during the year for Dauman’s pay is tied to the 10 co-CEO, made about $1,500
American Civil Liberties Union which pay was reported, ac- company’s share price, the more than she did.)
PENTAGON and Planned Parenthood of Indi- cording to FactSet; it was 17% spokesman said. 8 An Oracle spokeswoman de-
ana and Kentucky over an abor- a year earlier. Pay for Honeywell Interna- clined to comment.
White House to Back tion law recently signed by Gov. The Journal analyzed CEO tional Inc. CEO David Cote rose Cash compensation contin-
6
Marine for Africa Post Mike Pence. compensation and perfor- 18% to $34.5 million thanks to ued to account for about a
The White House intends to The lawsuit, filed Thursday in mance data for S&P 500 com- $14.25 million in cash incen- third of total pay, while stock
4
nominate Marine Lt. Gen. Thomas U.S. District Court, says the law is panies that disclosed pay de- tive payments, even as share- and options accounted for
Waldhauser to head U.S. Africa unconstitutional and challenges tails for their 2015 fiscal years holder return was 5.8% at the about 60%, up slightly from
2
Command, installing a battle- several provisions, including one between July 1, 2015, and industrial conglomerate. years past. Perks accounted for
tested commander at a time when that bans abortions sought be- March 31, 2016. Most of the re- Honeywell said the com- about 2% of pay, while pen-
the U.S. is confronting growing se- cause of genetic abnormalities and maining companies in the in- pany beat its targets for 0 sions and above-market inter-
curity issues across the continent. another that mandates an aborted dex are expected to file proxies growth in revenues and return ’07 ’10 ’15 est on deferred compensation
Defense Secretary Ash Carter fetus be buried or cremated. by early May. A new interac- on investment over the past Note: Data for 2014-15 are for 299 companies constituted about 6%, down
that disclosed compensation data between
recommended Gen. Waldhauser The suit seeks an injunction to tive graphic on the Journal’s two years, and that Mr. Cote’s July 1, 2015, and March 31, 2016. from 13% in 2014.
for the job in recent weeks and pause the law’s enforcement, website displays CEO pay and pay reflects performance for Source: MyLogIQ Pension gains pushed CEO
learned this week that the White which goes into effect July 1, until company performance data for 2014 as well as 2015. That in- THE WALL STREET JOURNAL. pay higher at many companies
House would move to nominate the case is resolved. The lawsuit S&P 500 companies. centive compensation was rein 2014 because of changes to
him, U.S. officials said. The formal says the new law puts an “undue Last year’s broad pay trend ported in full for 2015, al- The Journal analysis used the standard assumptions—in-
nomination by President Barack burden on women’s right to can be seen at 3M Co., the though he won’t receive half CEO pay figures as published cluding life expectancy—used
Obama is expected to come choose an abortion,” since it bans Minnesota-based maker of the amount until 2017, a in company proxy statements to calculate today’s value for
within weeks, the officials said. them in some circumstances, even Post-it Notes and industrial spokesman said. “Adjusted to and annual reports under Se- pensions that will be paid
Gen. Waldhauser, who cur- when the fetus won’t survive. The abrasives. CEO Inge Thulin’s an annual basis, Mr. Cote’s curities and Exchange Com- years in the future.
rently serves on the Pentagon’s suit also says women have a right pay declined 3.4% to $19.4 mil- compensation in 2015 declined mission disclosure rules. It For 2014, “pension disclo-
Joint Staff as the director for to choose an abortion in the first lion, with his cash incentive year over year,” he said. generally excluded CEOs who sures were an anomaly be-
Joint Force Development, must trimester “for any reason.” pay falling 33% but equity pay Some bosses had big pay changed jobs during the year. cause of changes in the mor-
win Senate confirmation. Gen. Mr. Pence’s deputy press secre- rising 25%. Total return for cuts on performance woes. The Some big paychecks weren’t tality tables as well as
Waldhauser is a former Marine tary, Stephanie Hodgin, said in an 3M’s shareholders was minus co-CEOs of Chipotle Mexican reflected in the Journal analy- interest-rate fluctuations,”
Expeditionary Unit commander. email that the Republican gover- 5.8%. 3M didn’t respond to re- Grill Inc., Monty Moran and sis. Sundar Pichai, who in Oc- said Mark Borges, a compensa-
Among other assignments, he nor “has every confidence this law quests for comment. Steve Ells, lost their bonuses tober was appointed chief ex- tion consultant with Compen-
led forces in the early days of is constitutional. We will work Compensation for the top- last year after a rash of illness ecutive of the Google online- sia Inc.
the Afghanistan war in 2001. with the Attorney General to de- paid CEOs didn’t always track outbreaks at its restaurants search business, was paid Year-earlier pension gains
Gen. Waldhauser would lead fend the law that enhances infor- performance for investors. To- sickened customers and sent $100.5 million in 2015, of were also a significant factor
a combatant command that is mation expectant mothers receive tal pay for Philippe Dauman of its share price tumbling. Total which $99.8 million consisted in 2013—the previous time
quickly becoming the focus of and enhances protection for the media conglomerate Viacom pay for the two CEOs fell by of restricted stock that vests compensation declined for
U.S. security policy. The number unborn,” Ms. Hodgin said. Inc. rose 22% to $54.15 million, more than 50% each, to $13.5 over two years. (Google co- CEOs of S&P 500 companies.
of Islamic State fighters in Libya State Sen. Travis Holdman, the on bigger stock grants. Total million for Mr. Moran and founder Larry Page, by con- Then, median compensation
has grown to as many as 5,000. Republican who sponsored the bill, return for shareholders was $13.8 million for Mr. Ells. trast, earned $1 cash as CEO of slipped 2.4% to $10.2 million,
Threats also are growing from al wouldn’t comment on the lawsuit. minus 42% during the same A Chipotle spokesman de- Alphabet Inc., the parent firm.) although equity pay rose 10.2%
Qaeda-affiliated groups as well —Associated Press period. clined to comment. Just 17 women ran compa- and cash pay rose 7.1%.
FROM PAGE ONE
Basketball’s Greatest Innovators

A handful of basketball players over the years dominated in such unique ways that they changed
how the game is played. Here are the signature moves of a few of the greatest.
ABOVE THE RIM SKY HOOK TRIANGLE OFFENSE THREE BALL

Wilt Chamberlain Kareem Abdul-Jabbar Michael Jordan Stephen Curry
The offenses on Many of Mr. Jordan’s 1996 The Golden State
Mr. Chamberlain’s Mr. Abdul-Jabbar’s Chicago Bulls notched Warriors, a team
teams in the 1960s points in the 1970s the most wins ever in a built around the
and early 1970s and 1980s came from season. The 6-foot-6 3-point shot,
were simple: Get the the same shot: the sky guard played in a believe that any
ball to the 7-foot-1 hook. Mr. Abdul-Jabbar system, the triangle possession ending
center, close to the was 7-foot-2, and no offense, that could get in a 3-point
basket, in any one in the NBA could him good shots from attempt by Mr.
way possible. block that shot. anywhere on the court. Curry is a good one.
Mike Sudal/THE WALL STREET JOURNAL.
POINTS reer. But it played a crucial role

in firming up another idea the
team was batting around. The
Warriors were dreaming about
Continued from Page One what would happen if they gave
with limited experience, led by Mr. Curry a green light to take
a Silicon Valley financier, that more shots, and more crazy
bought a floundering franchise ones, too—not off one foot, ex-
in 2010 and set out to fix it by actly, but from places on the
raising a single question: What floor where nobody had ever
would happen if you built a bas- routinely taken shots.
ketball team by ignoring every Mr. Curry had already
orthodoxy of building a basket- reached the point where he
ball team? could take as many as 10 threes
The process took many in one game without anyone no-
twists and turns, and there were ticing. It didn’t matter if the
times when it nearly failed. But shot was off one foot, from 5
the dominance the Warriors feet behind the 3-point line or
have displayed this season can the popcorn stand in the con-
be traced back to one of the course. His accuracy didn’t suf-
most unusual ideas embraced fer much. Before every game, in
by the data-loving executives: fact, Mr. Curry practices these
JASON HENRY FOR THE WALL STREET JOURNAL

the notion that the NBA’s 3- kinds of bombs by shooting
point line was a market ineffi- from the half-court logo.
ciency hiding in plain sight. The team realized that any
This season the Warriors possession that ended with a 3-
have sunk 1,025 3-pointers, by point attempt by Mr. Curry was
far the most in NBA history. Not worthwhile—and that they
only has Mr. Curry taken more would never discourage him
threes than any other player, he from taking one. In this, the
is making them at a rate of season of Mr. Curry’s unleash-
45.6%, higher than the NBA av- ing, the Warriors are shooting
erage for all shots. He has shat- 17% more threes than a season
tered his own record for most ago. Mr. Curry is attempting
3-pointers in a season by 34%. ‘No one really executed a game plan—a team-building architecture—around the 3-pointer,’ said Joe Lacob, the Warriors’ primary owner. more than 11 a game. No NBA
Moreover, distance seems to team had ever had a player at-
have no significant effect on his those two shots were radically as the team’s new executives the team’s assistant general lineup” or, as Barack Obama tempt more than nine. Last sea-
accuracy. He is a better shooter different. Shot attempts from settled on their plan to exploit manager, recalled thinking at called it, the “nuclear lineup”— son he hit 286 threes. This sea-
from 30 to 40 feet than the av- 23 feet had an average value of the 3-point line, they became the time. helped the Warriors take 9% son he is on pace for about 400.
erage NBA player is from 3 to 4. 0.76 point, while 24-footers convinced Mr. Curry would be “It’s once in a lifetime,” said more 3-pointers as a team than What amazes fans even more
The result is a basketball were worth 1.09. their centerpiece. Joe Lacob. the year before and make a is the location of those shots.
style no one has yet figured out This, the Warriors con- The first test of their com- The day after Mr. Ellis was higher percentage than anyone NBA players shoot an average
how to defeat. cluded, was an opportunity. By mitment came in the form of a traded, Mr. Thompson was in- in the league. of 28% from 27 feet or beyond.
“What’s really interesting is moving back just a few inches controversial decision: trading serted into the starting lineup. This combination of fre- Most players don’t even take
sometimes in venture capital before shooting, a basketball the team’s leading scorer, After that, according to the gen- quency and efficiency had a fas- them unless the shot clock is
and doing startups the whole player could improve his rate of Monta Ellis. Some believed Mr. eral manager Bob Myers, when cinating effect on opponents. It running out. Mr. Curry has
world can be wrong,” said the return by 43%. Ellis was too similar to Mr. the team was drafting and sign- forced them to spread out, ex- taken 253 such deep shots this
team’s primary owner, Joe La- Mr. Lacob wasn’t the only Curry and that he was costing ing players, the strategy shifted tending their defense all the year and made 47% of them.
cob, a longtime partner at Sili- team owner in sports to delve him shots. Others thought it from wondering whether they way to the 3-point line instead The result is that defenders
con Valley venture-capital firm into statistics—baseball has was crazy to banish the most could play with Mr. Curry to of packing the paint, leaving the have strayed even farther from
Kleiner Perkins Caufield & Byers. been doing it for years—and the popular player. At one point, asking: “Who can play with Warriors with lots of open the basket to guard him, open-
“No one really executed a game Warriors weren’t the first NBA just before the deal, Mr. Lacob Steph and Klay?” space. Mr. Curry set a record ing even bigger spaces for his
plan—a team-building architec- team to see the potential of the tested the confidence of his bas- By the time the 2014-15 sea- for 3-point shots and was teammates.
ture—around the 3-pointer.” 3-pointer. Starting in the 1990s, ketball executives by telling son began, the Warriors had named the league’s Most Valu- “Stretching a defense makes
In 2010, the Warriors hadn’t a string of teams with brutally them he was getting cold feet. padded their roster with An- able Player. Mr. Thompson it easier to score,” Mr. Myers
won an NBA title since 1975. effective defenses had They defended their plan and drew Bogut, a 7-foot center who made the All-Star team. The said.
They played in a dumpy arena prompted teams like the Phoe- pulled the trigger. protects the rim and shores up Warriors overcame the Cleve- The success of the Warriors
beside an interstate and had nix Suns and San Antonio Spurs The week after the 2012 their defense; the position-defy- land Cavaliers to win their first this season has turned Mr.
made the playoffs just once in to search for different ways to trade, Mr. Lacob was booed by ing Draymond Green, the steal NBA title in 40 years. Curry, who is 28 years old, into
the previous 15 years. The prior score, and that meant shooting fans. The team finished that of the 2012 draft; and rangy one the NBA’s biggest stars. He
owner, Chris Cohan, was more 3-pointers. More recently, season with one of the NBA’s guards Andre Iguodala and has an everyman appeal be-
loathed by many loyal fans. as the data improved, it became worst records. Shaun Livingston, whom they A step further cause he isn’t a giant.
Still, competition to buy the clear that teams weren’t taking acquired in free agency. “They The tinkering could have His celebrity has raised the
team was fierce. To fend off the nearly enough of them. complemented shooting,” Mr. stopped there. The Warriors profile of the 3-point shot. This
other finalist, Oracle Corp. The difference between the Team building Myers said, “even though clearly had hit on a winning for- year, like the last four years,
founder Larry Ellison, Mr. Lacob Warriors and everyone else was The Warriors already were they’re not shooters.” mula. But then they began NBA teams are taking more 3-
and entertainment mogul Peter what the team decided to do building a team around Mr. The Warriors then had a thinking about an audacious pointers than ever. They now
Guber paid $450 million, which with this information. Curry that would allow him to chance to trade for one of the idea that would make them amount to 28.3% of total shots.
was, at the time, the highest For many years after James take more 3-pointers. The most league’s premier players, Min- even better. College teams also hit another
price for a team in NBA history. Naismith invented basketball in critical step had come in the nesota Timberwolves forward The plan had started to take high in 3-pointers attempted
It wasn’t long before Mr. La- 1891, the prevailing view was 2011 draft when they selected Kevin Love. The move would shape in 2013, during a playoff per game this season. High
cob, 60, installed a basketball that the most important area of Washington State guard Klay have been a no-brainer for most game against the Spurs, one of school teams have caught the
brain trust akin to a board at the court was near the basket. Thompson. He, too, was the son basketball people. But the Tim- the NBA’s top teams. Mr. Curry bug, too.
one of his companies. The From Wilt Chamberlain’s finger- of an NBA player and an excel- berwolves wanted a player in was just then coming into his Mr. Guber, the team’s co-
team’s executives are always rolls in the 1960s to Kareem Ab- lent shooter. At 6-foot-7, he was return whose departure would own, showing signs that he owner, said other NBA teams
communicating—a group text dul-Jabbar’s sky hooks in the 4 inches taller than Mr. Curry. have scuttled the Warriors’ could be both dazzling and will try to emulate the War-
message hums on their phones 1970s to Mr. Jordan’s soaring The team believed Mr. master plan. “They kept asking deadly. During one possession riors’ original approach as they
during games—and every deci- dunks in the 1990s, the NBA Thompson’s shooting ability for Klay, and we kept saying early in the first quarter, Mr. attempt to end the team’s reign.
sion brings vigorous debate. But was the dominion of players would make defenses too fright- no,” Mr. Lacob said. “We Curry dribbled around a screen “Other teams will do it in a
from the beginning, the War- who owned the rim. ened to leave him alone, and weren’t going to trade Klay, and and found himself in a pocket of different way,” he said. “They’ll
riors brass placed an unusually When the Warriors, under that would limit their ability to they weren’t going to do a deal open space. Immediately, even take chances and challenge the
strong emphasis on numbers. their previous owners, drafted double-team Mr. Curry. But be- without Klay.” before he had time to set his incumbent and come up with an-
The data dive yielded many Mr. Curry in 2009, he wasn’t a cause he was tall, he could de- The team doubled down on feet, Mr. Curry pulled up and other way to create the magic.”
insights, but the Warriors even- prototypical NBA superstar. fend the other team’s best its 3-point plan by replacing fired a 3-pointer. For now, the Warriors have it.
tually zeroed in on the 3-point Though his father, Dell, had guard and shoot over defenses coach Mark Jackson with Steve Mr. Myers, the general man- They turned the 3-point line into
line. NBA players made roughly played in the NBA, Stephen without being blocked, which Kerr, a member of five NBA ager who was in the arena a boundary in time. The kind of
the same percentage of shots Curry was so lightly recruited could help the Warriors com- championship teams who had watching that night, couldn’t strategy that unfolded inside the
from 23 feet as they did from out of high school that he had pete against teams that hoped retired with a 45.4% shooting believe his eyes. As the ball line belonged to the game’s past.
24. But because the 3-point line attended tiny Davidson College to use their size to contain Mr. rate on 3-pointers, the highest swished through the net, he The future of basketball, they
ran between them, the values of near his hometown of Charlotte, Curry. in league history. It was his first turned to the other Warriors believed, lay behind the line—
N.C. He only emerged as a tan- What made the move most NBA coaching job. executives around him to con- and Mr. Curry showed it was
ONLINE talizing NBA prospect after his attractive was its novelty. Most That season, with all the firm what he had just seen. “Did farther behind that line than
team made an improbable run 3-point-shooting teams had one pieces in place, the Warriors he just shoot that off one foot?” even they imagined.
See videos and to the regional finals of the superb shooter surrounded by a fielded five players between 6- he asked. “Who shoots a three “I don’t know why it took so
WSJ
.COM
an interactive
graphic about the
Warriors at
2008 NCAA tournament.
Even after his first two sea-
sons with Golden State, Mr.
collection of supporting players.
“Imagine if we could have
two of those guys,” Kirk Lacob,
foot-3 and 6-foot-8 who all
were threats to shoot 3-point-
ers. This “small-ball” lineup—
off one foot?”
The shot was only one of doz-
ens of stunners Mr. Curry had
long,” Mr. Lacob said. “You
would think in sports that this
would’ve been tried a long time
wsj.com/PageOne. Curry wasn’t a sure thing. Still, the owner’s 27-year-old son and widely known as the “death made during his young NBA ca- ago.”
VEGAN mer au pair from Sweden,

started the school five years
ago when she couldn’t find
one she liked for her own
myself, and it was so amazing.”
Other parents aren’t quite
there yet. As one mom put it,
“Celery soup today for lunch?
mond milk,” she said. “It shows
a level of dedication to the kids’
well being that I would assume
would be seen in other parts of
and emotionally charged is-
sue,” said Sharon Akabas, an
associate director for educa-
tion initiatives at Columbia
lunch at the Scandi School dis-
played a range of sophistication
in their palates. Several served
themselves from a heaping plate
Continued from Page One daughter. Many of its parents Chicken nuggets for dinner!” the way the school runs.” University’s Institute of Hu- of spinach-mushroom lasagna.
Children learn a lot from have international back- The organic menu—with a Annual tuition is $18,500 man Nutrition. There are “a lot Declan Molloy, 4, dumped
their peers. Lucy Schapiro, who grounds and embrace its devo- bare minimum of sugar and for full-time students. Every of feelings and too little data” his lasagna into his miso soup
asked for leftover miso soup on tion to unstructured play, cre- salt—includes homemade root year the school hosts a “tast- about long-term effects. Dr. and mushed them together.
a recent day, picked up a white ativity and the outdoors. vegetable gratin, butternut ing” with a nutritionist to re- Akabas said parents need to “Yummy,” he said.
cube from her bowl with her fin- Some resisted the vegan squash risotto and broccoli assure parents that their chil- make sure vegan children are
gers and squished it. menu when it was announced salad. The chef on site bakes dren get enough calories and getting enough iron, calcium VIDEO
“I don’t like these cheese but then converted as their chil- fresh bread every day. nutrients. Many are omnivores and vitamins D and B12. Then
things,” she said. dren got used to it. “I com- Karen Jacobson-Sive, a self- at home. again, she said, its students Watch a video
“They’re not cheese,” said her
classmate, Aris Morales-Lun-
dgren. “They’re tofu.”
plained about the kids not eat-
ing,” said Chiara Opiparo, whose
sons ages 2 and 4 attend. “That’s
described foodie whose son
attended, was attracted by the
“cool factor.”
Some experts question
whether purely vegan diets are
healthy for such young children.
might well be eating better
than peers at places that pile
on sugary juice and pretzels.
WSJ
.COM
about the Scandi
School’s vegan
offerings at
Ms. Germerud-Sharp, a for- when I started tasting the food “They make their own al- “This is a very complicated Children sitting down for wsj.com/ahedvideo.
BOOKS
‘Property is the embodiment of personality.’ —G.W.F. Hegel
HEDRAL OF COMMERCE The art nouveau interior of the Galeries Lafayette department store, built in 1912 on the Boulevard Haussmann in Paris.
The Long History of Retail Therapy

Conspicuous consumption is not a product of market capitalism, but a mark of civilization
Birkbeck College, University of Lon- embroideries” seeking the “look of cess and evolution of consumption some acute observations, Mr. T
pire of Things don, is an authority in “consumer the moment.” over the past five centuries. mann argues that much of his a
ank Trentmann studies” and wants to jolt the ac- In 15th-century Florence, the com- Still, he seems more critically pre- sis was simply wrong. Ameri
Lane, 862 pages, £30 cepted wisdom in his field. petitive display of luxury goods was occupied with the progressive vision, were saving more, not less, du
Sometimes the sheer range of ex- so extravagant that the Dominican in part because it has shaped contem- the postwar years: In 1957 the
BY EDWARD ROTHSTEIN amples on offer can make the book friar and preacher Girolamo Savona- porary ideas—and it is fraught with sonal savings rate was a phenom
seem more like an open-air market rola reacted with his notorious “bon- errors. The progressive worldview, he 10%. Moreover, public spending
than a coherent presentation of fire of the vanities,” sending musical notes, has a long and mixed pedigree. with affluence and did not de
PIRE OF Things”—a sweepingly goods. The first half is a chronologi- instruments, books and tapestries up Plato described how luxuries would the way Galbraith’s model m
led history of humanity’s pas- cal history of consumerism, guided in flames—thereby illustrating an al- lead to the moral and physical disso- have suggested.
for the possession of objects— by extended case histories—about ternative form of consumption. In lution of a city. Avarice was “the root “Empire of Things” is by
bit like one of the early 20th- 16th-century northern Italy, for ex- Venice during the next century, the of all evil,” according to the Christian means a systematic rebuttal, bu
ury department stores that ample, or 20th-century Asia. The senate passed rules against luxurious apostle Paul. Dante sent usurers to Trentmann’s approach througho
k Trentmann writes about a few second half is a series of issue- display: One 1512 law said that no hell’s seventh circle, pushed down to present so much detail that w
red pages into his epic chroni- driven chapters examining themes, more than six forks and six spoons into burning sand by the stuffed convinced, at the least, that a
uch stores—which were likened including the idea of credit, ethical could be given as wedding presents moneybags they carry. deal of thinking about consump
e time to museums, so encyclo- consumerism, purchases made for and banned gilded mirrors; a 1562 In the modern period, Mr. Trent- requires re-examination.
c were their offerings—seemed the home and the effects of capital- law limited the desserts permitted at mann finds similar ideas in the Did consumer culture really
t the entire world of objects on ism on religion. Mr. Trentmann banquets. In fact, Mr. Trentmann Romanticism of Rousseau, who be- courage passivity and an aban
ay. One store, Tietz in Berlin, keeps a feeling of miscellany in play; notes, the imposition of sumptuary lieved “the desire for things turned ment of craft and skill? How t
hasized the point with an illu- he seems to deliberately avoid a con- laws regulating consumption accom- free men into slaves.” A century plain, then, that men spent rou
ted globe on its roof. Within ceptual system that might explore panied the growth of material possi- later, he suggests, Marx and others twice as much time on dom
e meccas of material goods, it fundamental principles. bility throughout Europe. went much further, arguing that chores and repairs in 1945 as 1
ed, was all that could be What gives the book coherence, A large amount of spending w
med of and desired. instead, is its spirit of challenge and toward home craftsmanship
r. Trentmann’s narrative has a dissent. Early studies of what is now new skills.
ar abundance. Here are 16th- called “material culture” like Fer- A Chinese observer in the 1570s complained But isn’t it true that an addic
ury silver forks gathered by Flo- nand Braudel’s “The Structures of about the ‘young dandies’ who lusted ‘for Suzhou to credit is a distinctive proble
ne merchants in Europe’s first Everyday Life” (1982), intent on a our time? Only if you ignore th
n culture; 18th-century Indian new form of history, paid close atten- embroideries’ and the ‘look of the moment.’ England in 1700 every second
o, which became so popular that tion to household and economic of a household left behind un
pean textile weavers had it goods but not to major historical and debts at death. In 1925, Liver
ed; 19th-century flush toilets, political events. A larger perspective over time capitalism and modern industry had 1,380 registered moneylen
h were too advanced for the This restricted perspective, Mr. shifts our understanding; so too had changed the ways in which What about religion? Isn’t g
ge system of Manchester, Eng- Trentmann argues, became common does a vast geographic perspective. people relate to objects; things had ing secularism a direct result o
and 21st-century smartphones, in the discipline and has led to many Mr. Trentmann surveys the eco- become defined solely by their eco- panding consumption? Not re
h, in 2009, were used for emails generalizations that don’t hold up. In nomic impact of the slave trade not nomic value. Mr. Trentmann says: Eastern
% of American owners and just addition, he suggests, the world of the just in the West but in Africa. Pre- Other meanings and significance Central Europe today are “not
f Italian owners. consumer has been too narrowly de- imperial Africa, he points out, was were cloaked by this “modern fetish- richer in things than under Com
re too are aisles of facts, eccen- fined, focusing on private acquisition hardly a “traditional” society un- ism.” The result, according to this nism,” but there are “more Chri
and suggestive, ranging over and thus neglecting areas like public touched by materialism. During the view, has been “disenchantment, in- believers.” Religion, he writes
nents, eras, languages. In Eng- spending, which is now running at a 18th century, imports in West Africa equality and conflict” and a raging saturated with things.”
in 1500, real wages were three rate of more than 20% of GDP in the rose 10-fold. Each African region de- consumer culture caused by the ma- Is capitalism necessarily am
s higher than they had been in world’s wealthiest countries—“levels veloped particular tastes in fashion nipulation of material desire. Not at all: In Mr. Trentmann’s vi
because the Black Death unparalleled in every previous period and cloth. The end of the slave trade During the 1950s, Mr. Trentmann has been long accompanied b
-49) had wiped out more than a in human history.” in 1807 led to the expansion of Afri- suggests, this outlook became part of forts “to moralize the economy”
of the working population. In So a polemical edge accompanies can exports of native products like popular understanding, largely purchase selectively or set up a
the king of the African kingdom Mr. Trentmann’s array of facts and palm oil and gum. “Africans,” Mr. through a series of books: David cott to encourage a particular
ahomey made £250,000 from observations. You think that fren- Trentmann writes, “did not need im- Riesman’s “The Lonely Crowd” come. The most recent manifest
ng slaves (an astronomical sum zied acquisition is uniquely charac- perial masters to teach them how to (1950), Vance Packard’s “The Hidden of this impulse is “ethnical con
approximates £45 million in to- teristic of modernity and Western become consumers.” Persuaders” (1957) and, most impor- erism,” like the fair-trade movem
currency). capitalism? Think again: Mr. Trent- As Mr. Trentmann chisels away at tant, John Kenneth Galbraith’s “The its products “assuring consu
late 19th-century Europe, food mann begins the first chapter citing various claims and misconceptions, it Affluent Society” (1958). that distant producers in the d
ped in price, but water became a 60-year-old chronicler in 1808 be- becomes a little more clear what his Galbraith, Mr. Trentmann says, oping world receive a fair dea
expensive. In 1954, only 7% to moaning how rapidly the world overall strategy is. Toward the begin- saw the U.S. as a society “where their sweat and toil.” But this se
f French households had a re- around him has changed. Wealthy ning of the book he notes that “today, people were driven to consume ever may be the vaguest part of the
rator or a washing machine. In men parade around displaying consumption is at the center of a more to keep the engine of produc- because we never learn how “
only 5% of German men fancy pocket watches. Ordinary citi- heated public debate between two ri- tion running, at the expense of pub- ness” is assessed or what effec
ged their underwear daily. At the zens follow frivolous fashions and val camps pointing their moral artil- lic welfare, the environment and movement has had.
f the 20th century, New Yorkers keep animals as trendy pets. But lery at each other.” On one side are their own happiness.” Galbraith Despite the book’s scale, co
eight times as rich as they were this chronicler, Mr. Trentmann tells “progressive and social democratic warned of the end of thrift and the siveness is not one of its goals.
e beginning of the century, but us, “was not writing from Paris or critics who attack the juggernaut of imminence of “private opulence and pire of Things” is difficult, s
household garbage weighed London but from Yangzhou” in shopping, advertising, branding and public squalor.” times elusive, yet almost alw
tly less (the bulk of personal China. In this case, the fancy pets easy credit for turning active, virtu- Mr. Trentmann accepts little of illuminating. By the end rece
ish used to be ash). were chickens from Canton and rats ous citizens into passive, bored con- this, certainly not the idea that ob- wisdom is weakened, though
all this is a little dizzying, that is from “the West.” sumers.” On the other are “champions jects were transformed into fetishis- never become quite sure what to
of the point. The facts presented What about, then, the issue of of consumption, first and foremost tic economic artifacts during the late in its place. But in an acad
mpire of Things” touch on the “conspicuous consumption” defined classical liberals who cherish freedom 19th and early 20th centuries, when field—studying consumption—
omy of slavery, the growth of in 1899 by Thorstein Veblen? Isn’t it of choice as the bedrock of democ- they in fact became weighted with can seem wary of its own spec
ern commerce, the beginning of characteristic of modern consumer- racy and prosperity.” broader significance: Think only of that turns out to be a refreshing
n utility networks, the rapid eco- ism? Not at all, Mr. Trentmann says. Mr. Trentmann insists that he is the labors of collectors and the de- elty, like window shopping wit
c change during postwar de- One Chinese observer in the 1570s not out to “adjudicate a moral development of museums. And while having to decide on a final purc
, and the shifting aspects of con- complained about the “young dan- bate” or decide whether consump- Galbraith’s view, which “has in-
BOOKS
‘Whatever he believed, he believed. It didn’t matter to him whether it was really true or not. He just changed the truth til it fit him.’ —James McBride
Emphasizing the Downbeat

female singers, capriciously fining
Kill ’Em and Leave band members, running “senseless,
By James McBride endless, punishing rehearsals for
W&N, 256 pages, £20 hours, sometimes right after the
gig, sometimes til daylight, for no
BY CHRISTOPHER CARROLL reason other than to show who was
the boss.”
Still, it’s hard to overstate
EARLY IN “Kill ’Em and Leave: Brown’s importance as a musician.
Searching for James Brown,” James He sold “more than 200 million re-
McBride describes the beginning of cords,” Mr. McBride writes, “re-
the recent biopic of Brown’s life, corded 321 albums, 16 of them hits,
“Get on Up.” The film opens in 1988 wrote 832 songs, and made 45 gold
in Augusta, Ga. Brown, in a green records. He revolutionized American
sweatsuit, carries a shotgun into a music: he was the very first to fuse
storefront office space filled with jazz into popular funk; the very first
white insurance executives. “They to record a ‘live’ album that became
stare in terror as he launches into a a number-one record.”
tirade that ends with, ‘Which one of Brown’s innovations led to the
you gentlefolk hung a number two in creation of funk. He brought the bass
my commode?’ Then his shotgun ac- up in the mix, put the emphasis on
cidentally discharges into the ceil- the downbeat, rather than on the
ing—BLAM! Brown stares at the ceil- second and fourth beats, and re-
ing and mutters, ‘Good God.’ ” Before placed traditional harmonic progres-
long he’s in a high-speed chase with sions with open-ended vamps based
a fleet of police cruisers, barreling on a single harmony (listen, for in-
through a barricade before ulti- stance, to his 1967 song “Cold
mately surrendering. Sweat.”) His innovations were picked
up and expanded on by everyone
from Sly Stone to Stevie Wonder,
Miles Davis to DJ Kool Herc.
Brown recorded 321 Mr. McBride is himself also a mu-
albums, wrote 832 songs sician—he played tenor saxophone
for the jazz singer Jimmy Scott. So
and had 45 gold records. it comes as something of a disap-
pointment that Brown’s music isn’t
discussed at more length. The sec-
“It’s a funny scene,” Mr. McBride tion of the book in which Mr.
writes. “Problem is, it’s mostly fic- McBride compares the differences
tion.” It’s this willful misconception between jazz and funk soloing, em-
GETTY IMAGES
of Brown as “a drug addict, a trou- phasizing the deceptive difficulty of
blemaker, all hair and teeth” that Mr. playing funk, is so well done that
McBride hopes to correct in his one wishes for more, especially since
lively book, a mix of biography and GIVE HIM A HAND Brown performing in 1979. the book is often marred by clichéd
reportage and digressive storytelling phrasing and puzzling similes, as
that peers beneath the professional And looming over all of this is biopic. Far from a drug-addled, un- Brown’s office buildings, Mr. when history is described as moving
veneer Brown so carefully con- the question of racism in American hinged nut, Brown was a man who, McBride quotes Brown’s eldest son, “like an erupted volcano spreading
structed. He seeks out those who music, and the exploitation of black born into abject poverty, worked re- Terry, saying that Brown, whose of- lava that sets fires in places far dis-
knew Brown—friends, ex-wives, dis- music and musicians by white musi- lentlessly to perfect his music and fice in the same building had re- tant because of the enormous heat
tant relations, band members, man- cians and record executives alike. to present a carefully composed face cently been burglarized, marched contained within it.” Such sentences
agers, accountants—interweaving Mr. McBride argues that Brown is to the world, a man who for most of into the room carrying an old hunt- can feel like filler.
these interviews with short histories “the most misunderstood and mis- his life rarely cursed or drank or ing rifle—one that Brown’s manager The book is, on the whole, a Her-
of Brown’s family and ancestry, the represented African-American fig- smoked, and who was so proud that recalled didn’t even have a firing culean effort to bring clarity to a
places he grew up, especially Au- ure of the last three hundred years he “sat in a hair dryer for three pin in it—because he had seen an man who seemed to work all his life
gusta, and ruminations on Brown’s . . . nearly as important and as in- hours after every show, because he unlocked door and thought he was to remain remote. Though Mr.
social and musical legacy. fluential in American social history always wanted the public to see him being robbed again. McBride’s reporting and research are
Mr. McBride, who won the Na- as, say, Harriet Tubman or Freder- ‘clean and proper.’ ” And, as Mr. McBride writes, it admirable, it still remains difficult to
tional Book Award in 2013 for his ick Douglass.” The event that the film’s opening was not Brown who destroyed the reconcile the Brown who wrote “Say
novel “The Good Lord Bird,” also in- The false impressions are due in scene was based on, for instance, police cars, but the other way it Loud—I’m Black and I’m Proud”
vestigates the sad legal battle over large part to the singer’s own efforts. came, as Mr. McBride describes it, at around—the police “caught him after and who mentored a young Al Sharp-
Brown’s estate. Valued near $100 “‘You did not get to know James a nadir in Brown’s career: His band a low-speed ‘chase’ not far away and ton with the Brown who was friends
million at the singer’s death in 2006 Brown,” says his lawyer Buddy Dallas, had dissolved, his marriage was suf- reportedly fired 17 bullets into the with Strom Thurmond and supported
and meant largely to fund scholar- “because he did not want to be fering and his father was in the hos- truck, two of which entered the gas Reagan (neither of whom, surpris-
ships for poor children in South Car- known. In 24 years of working with pital. It was only at this point, when tank—with Brown still inside the ingly, come in for any serious discus-
olina and Georgia, it has become an him, I have never known a person he was 55 (“His knees were going— truck.” When the chase began, he sion). Even so, Mr. McBride provides
American Jarndyce v. Jarndyce, with who worked harder at keeping people arthritis was killing him”) and in the had been, “pitifully and desperately, a sympathetic and deeply knowl-
endless lawsuits brought by family from knowing who he was.’ ” depths of his depression, that he trying to get to his father.” edgeable portrait of one the 20th
members and exes left out of The Brown who emerges from had turned to PCP after years of Brown was not an angel, cer- century’s most important musicians.
Brown’s will slowly depleting the Mr. McBride’s dogged research avoiding drugs. tainly. He treated his musicians ter-
funds, none of which has made it to bears little resemblance to the car- About those insurance executives, ribly—Mr. McBride calls it “one of Mr. Carroll is on the editorial staff
the children Brown hoped to benefit. toonish parody presented in the who had rented space in one of his saddest legacies”—sleeping with of the New York Review of Books.
Freedom for Me but Not for Thee

sarily agree with—Mr. Bacevich’s Mr. Carter, says Mr. Bacevich, wanted “From the end of World War II to pseudo-event. It may have pre-
America’s War for worldview. to trade “a shallow freedom for true 1980, virtually no American soldiers vented Iraq’s explosion from a Bal-
The Greater Middle East “America’s War for the Greater freedom and dependence for auton- were killed in action” in the Middle kan level of violence to a Rwandan
By Andrew J. Bacevich Middle East” is Mr. Bacevich’s mag- omy.” But because the nation opted East, he writes. “Since 1990, virtually level. Foreign policy and military
Random House, 453 pages, £21.09 num opus about everything that has for a shallow freedom based on con- no American soldiers have been strategy are often not about accom-
been bothering him for decades re- sumption, America went on to fight killed in action anywhere except in plishing anything positive but about
BY ROBERT D. KAPLAN garding U.S. foreign policy. The sub- unnecessary wars in the Middle East, the Greater Middle East.” True, but keeping even more negative things
title is “A Military History,” but it mainly—and especially at the begin- the end of the Cold War and Soviet from happening.
really isn’t. History concerns itself, ning—for oil. support for regimes in Iraq and Af- This is how the book goes. It
WHEN HISTORIANS IN future de- in part, with nuance, complexity sweeps you along, unless you are
cades ponder America’s wars in Viet- and the entertaining of counterfac- willing to stop and say: Hey, wait a
nam and Iraq, the name of Andrew J. tuals. It tries to grasp the multiplic- minute, that’s not the whole truth.
Bacevich, a West Point graduate, re- ity of motives and tragic choices be- Nevertheless, there is wisdom aplenty
tired Army colonel and professor hind any historical episode or in one of Mr. Bacevich’s key proposi-
emeritus at Boston University, will epoch. The finest histories resemble tions, which is that in all the decades
have its own poignant chapter. Mr. that the Americans sent troops to
Bacevich fought in Vietnam, and his fight in the Middle East—from Ron-
only son, an Army first lieutenant ald Reagan’s dispatch of Marines to
named after him, was killed in Iraq. This antiwar polemic Beirut in 1983 to Barack Obama’s ef-
But long before his son was killed, offers plenty of wisdom fort to topple Libyan dictator Moam-
Mr. Bacevich had carved out a niche mar Gadhafi in 2011—there was far
as a fiery polemicist against not only but not the whole truth. too little appreciation of the region’s
the 2003 invasion of Iraq but the deeper problems: “the vacuum left by
whole logic of preventive, expedition- the eclipse of British imperial power;
ary warfare. His son’s death in 2007 literature more than political sci- intractable economic backwardness,”
inevitably added force to the elder ence. Such qualities are missing or, in a larger sense, the granular in-
GETTY IMAGES
Bacevich’s judgments. He became from this book, which is instead a tractability of warring tribes and
almost mythic in antiwar circles as a deft and rhythmic polemic aimed at sects. As Mr. Bacevich puts it, “refer-
military man whose family had paid America’s failures in the Middle ences to countries like Oman and So-
the ultimate price, and hawkish writ- East from the end of Jimmy Carter’s TANGIBLE ACHIEVEMENT Celebrating Operation Desert Storm and the malia” in too much American think-
ers who might otherwise have labeled presidency to the present. liberation of Kuwait City from Saddam Hussein on Feb. 27, 1991. ing “implied that they were more or
him an isolationist showed restraint The polemic starts with Mr. less interchangeable with Norway or
and respect. Carter’s 1979 “malaise” speech, which This is not isolationism, a word ghanistan made those and other re- the Netherlands.”
Actually, Mr. Bacevich may be less called on Americans to be materially associated with those opposed to gimes more adventurous and much In other words, American policy
a left-wing isolationist than an old- less self-indulgent and rediscover old- fighting the Germans and Japanese less stable, leading to an entirely dif- makers, especially in the run-up to
fashioned conservative scold who fashioned values. The speech was a in the years leading up to World War ferent regional dynamic that the U.S. the Iraq War, didn’t know what they
harks back to the particularism of reaction to a bad economy, a second II. But it is an extremely restrictive could not ignore. were dealing with. Whatever differ-
the late diplomat George F. Kennan. oil shock and the Iranian Revolution— view of American interests abroad in He says that Desert Storm “ac- ences one might have with Mr.
Particularism stands against univer- and it flopped, as Mr. Bacevich ad- an ever more globalized world. Mr. complished next to nothing.” Not Bacevich’s broad indictment, it’s
salism and the muscular projection mits, becoming a milestone on the Bacevich wants a foreign policy of true. The elder Bush administration hard to argue with that compelling,
of America’s values abroad; it ac- way to Mr. Carter’s electoral defeat near-absolute purity, and so he is not only liberated Kuwait from Sad- often-enough-true insight.
cepts the world as it is, with all of its against Ronald Reagan. alienated not only from the neocon- dam Hussein’s troops, with all of the
intractable cultural and ideological Nevertheless, Mr. Bacevich finds servative interventionism of the human-rights ramifications that Mr. Kaplan’s most recent book is
differences, and is wary of entangle- that Mr. Carter’s rhetoric “bears younger Bush administration but such a liberation entailed; it may “In Europe’s Shadow: Two Cold
ments. As someone who supported comparison with Abraham Lincoln at also from the “amoral machinations” have also kept Iraq from moving on Wars and a Thirty-Year Journey
the Iraq war and then admitted to his most profound, Woodrow Wilson of the Nixon and Ford administra- to attack Saudi Arabia. He writes Through Romania and Beyond.”
being wrong about it, I have learned at his most prophetic, and Franklin tions. Here he is less like George that the “surge” of troops in Iraq in He is a senior fellow at the Cen-
over time to respect—if not neces- Roosevelt at his most farsighted.” Kennan than Rand Paul. 2007 was a “pseudo-event.” Some ter for a New American Security.
BOOKS
‘What today is a problem—will one day be a task; what today is a vision and faith of a single individual, will one day become a law for all.’ —Erich Mendelsohn
Holy Rubble and Rabble

rooftops and laundry lines.” Part of
Till We Have Built Jerusalem this, she writes, echoing Mendelsohn,
By Adina Hoffman is “a deep-seated cultural indiffer-
Farrar, Straus & Giroux, £19.77 ence to physical beauty.” It seems to
her like a kind of betrayal of what
BY MATTI FRIEDMAN Jerusalem should be.
The author’s take is open to some
debate. In the past few years we’ve
‘WHOEVER DID NOT SEE Jerusalem seen a drab intersection transformed
in its days of glory has not seen a by a Santiago Calatrava bridge, the
beautiful city in his life,” the Talmud conversion of Jaffa Road from a per-
says of the days when Herod’s tem- petual traffic jam into a light-rail line,
ple shone at the center of a city that the construction of a popular park
symbolized the gateway to the di- along an old Turkish train track, and
vine. The world was given 10 allot- the restoration of the Old City walls,
ments of beauty, the sages say, and to name just a few projects. Ms. Hoff-
FRÉDÉRIC BRENNER, COURTESY HOWARD GREENBERG GALLERY
Jerusalem got nine. man’s description of Jerusalem, in

Along the wall of the same temple, any case, seems to be less one of the
unmentioned by these sayings, was a city’s appearance than of its soul,
noisy commercial street 25 yards which leads us back to the question of
wide where 2,000 years ago you could what exactly Jerusalem is and where
barter for a goat, change money, and its soul lies. Is Jerusalem the city of
find weavers, butchers, prostitutes priests, prophets, architects, and writ-
and some murderous zealots. It was a ers, marred by ornery people who do
short walk to the hippodrome, where things like sell T-shirts and hang rags
you could brawl with rival fans and, if to dry? Or are the shirt-sellers and
you were lucky, see a really good rag-hangers Jerusalem?
chariot crash. One imagines a Temple When historians use phrases like
priest, pausing mid-sacrifice, sighing “First Temple Jerusalem” or “Second
as he glances at the earthly Jerusa- Temple Jerusalem,” it implies the
lem over the wall. Temple is the main event, the Big
In “Till We Have Built Jerusalem: GRAND FACADE The Palace Hotel being refurbished in 2009. Built in 1929 by Palestine’s Supreme Muslim Council, it Idea. But the residents of “Second
Architects of a New City,” Adina went bankrupt in the 1930s and then served as various government offices. It is now the Waldorf-Astoria Jerusalem. Temple Jerusalem” were actually in
Hoffman gives us the story of three the market next door, trying to get a
gifted architects who brought their between Prussianism and the life- Jerusalem to life and made me more tor whom Harrison brought over in good price for some pigeons, plotting
talents to the city two millennia cycle of the Muezzin.” The Jews, he alert to the choices, good and bad, 1934 described Jerusalem as “funda- against one another, seeing people
later, between the world wars. By thought, didn’t know from beauty— made by those who put the city to- mentally depressing.” Harrison stayed with Big Ideas as a nuisance (like
this time Herod was long gone, re- they lost their aesthetic sense in ex- gether over the years. in the city exactly one day longer their present-day counterparts) and
placed by the British, but the tension ile and had to be “trained anew to Mendelsohn didn’t last long in Je- than the 15 years necessary to qualify looking upon the magnificent ma-
between the imagined city and the see.” Mendelsohn had in mind just rusalem. One gets the impression for his government pension. sonry of Herod’s architects as a good
real one remained. the guy to do it. Indeed, he thought that it was too small a stage, the vi- place to chisel a joke. Big Idea people
One architect was a dictatorial he should be entrusted with the de- sion of an Arab-Jewish symbiosis too write the history, though, and when
German-Jewish modernist; another a sign of the entire country. unlikely, and that the “Orient” was Erich Mendelsohn came they notice the market people, it’s
British civil servant who hoped to That this didn’t happen was a insufficiently interested in Erich often as a disappointment or an af-
stay away from Britain as long as continual source of annoyance, but Mendelsohn’s ideas about how it here in the 1930s hoping front, like those poor money-chang-
possible; the third a creature of the he had a good time living in a de- should look. When the Wehrmacht to unite Jews and Arabs ers trying to make a buck on the
old polyglot Middle East—a Greek, a funct Jerusalem windmill with his drew distressingly close to Palestine wrong day early in the A.D.
Christian and a Mason. Sifting bohemian wife, dressing the maid in 1941 he decided, upon second through architecture. Not far from where I live is Jeru-
through official documents and pri- like “part of the windmill,” and de- thought, that California might be a salem’s main shopping mall, a build-
vate letters, Ms. Hoffman, an Ameri- signing a lovely library and villa for better choice. ing that appears in no prophecy and
can writer who has spent many years the magnate Salman Schocken, an- If some of the city’s best modern What the third architect of this whose awesome ugliness would have
in Jerusalem, resurrects these forgot- other displaced German with an out- buildings are Mendelsohn’s, the Brit- book, Spyro Houris, thought of all driven Erich Mendelsohn to despair.
ten men and succeeds in adding fasci- size personality. Mendelsohn’s plan ish civil servant Austen St. Barbe this is an interesting question, but It’s full of thousands of Jews and Ar-
nating human detail to the cityscape. was so detailed and authoritarian Harrison is behind what may be the despite the author’s best attempts, abs every single day, shopping, eat-
Almost everything in the book was that it included instructions for how two most beautiful of all: Govern- Houris remains a cipher, his thoughts ing, hanging out—an interfaith
new to me, though I’ve lived in Jeru- residents were to push back their ment House, finished in 1931, and the on the city lost along with all but the shrine to the gods Nike and Ameri-
salem my entire adult life and have chairs after meals. Rockefeller Archaeological Museum, barest details of his life—birth in can Eagle. Is the mall an aesthetic or
passed some of the buildings she de- Now I know, thanks to Ms. Hoff- which opened in 1938. Both were cosmopolitan Alexandria in 1883, a moral blight on this exalted city? Or
scribes thousands of times. man’s book, that Mendelsohn’s angu- meant to serve as temples to a move to Jerusalem, the design of the abode of its human heart?
I now wonder, for example, how I lar design for the Anglo-Palestine peaceful Palestine under British rule, some beautiful villas, and death in The meeting of some grand de-
could have spent days in the mater- Bank that opened in 1939 on Jaffa and both reflect less a Middle East- the city in 1936. sign with flawed human beings isn’t
nity ward of the hospital on Mount Road was meant to echo the “stark ern style than a Western imagining Ms. Hoffman sympathizes with a perversion of Jerusalem but
Scopus without knowing anything verticals” of buildings in Hebron. I of a Middle Eastern style—a beauti- the subjects of her book, with their something close to its essence, the
about the man who designed the know that he imagined the Mount ful approach in itself and no less hopes for a different kind of place, groans of disappointed observers a
building. This was Erich Mendel- Scopus hospital building, completed genuinely local than any other. and with their disappointment. She kind of eternal urban soundtrack, as
sohn, an architect of brilliant repu- the same year on the desert’s edge, After a few quiet years in the regrets the way commerce down- familiar and soothing as car horns
tation in Germany who came to Pal- as stretching “from Jerusalem to 1920s, Harrison watched friction be- town mars pretty facades with ugly and prayers.
estine in the 1930s hoping not just Saudi Arabia” and that the construc- tween Arabs and Jews burst into vio- signs advertising ugly clothes, the
to escape the Nazis but also to bring tion workers called its small domes lence, complicating his building proj- unsightly metal detectors and secu- Mr. Friedman is the author of
together Jews and Arabs through “breasts.” The stories in Ms. Hoff- ects and eroding any optimism about rity guards outside her characters’ “Pumpkinflowers: A Soldier’s
architecture and to create “a union man’s account brought new pieces of the future. In a letter, a British sculp- buildings, rags that “droop from Story,” out in May from Algonquin.
Catching Nature on the Wing

knowing anything of how it lives. In cut a tiny hole in the canopy,” he Because the team is chasing a learnt of its rareness because less
The Rarest Bird in the World the end, all they—and the reader— writes. “Its light was fragile and phantasm, the hope of a bird about than fifty birds are thought to re-
By Vernon R.L. Head learn about the nightjar is that it ex- sharp, stretching up and pulling which nothing is known other than main. It is seldom airborne because
Signal, 243 pages, £14.99 ists, before its broad wings, slashed tightly at the sun. It was tied to a the structure and markings of one it is uncomfortable in the sky. . . .
with white just below the wrist, bear flower, lighting the petals in a glow- dried wing, Mr. Head builds his Unable to roam and find new homes,
BY JULIE ZICKEFOOSE it off into the dark again. it is now trapped, confined to a sin-
The four friends move through gle tiny tract of land. It has become
natural areas left pristine by the du- a relic, a memory of a past habitat,
WHAT CAN ONE TELL of a bird from bious beneficence of tsetse flies. Mr. a memory of change.”
its wing? Enough to discern, many Head’s gently rocking, unabashedly The author wanders off down
years and much discussion later, that purple prose is dense with surpris- jungled paths in flights of language
it was unknown to science. The Cam- ing metaphor and exquisitely de- so evocative that one hardly cares
bridge University Expedition of 1990, scriptive phrases, the kind that where he’s headed; it’s enough just
collecting biological specimens in a make a reader double back to savor to hear his song. And in a particular
little-known desert plain of Ethiopia, them twice. Within a few lines, you bit of alchemy, the experience of
found a road-killed bird from which know you’re in for a Nabokovian reading his book closely mimics
they recovered a single wing. Had ride. “It was quiet and the heat felt bird-watching itself. Catching the
they known they’d just bagged the dead. Nothing moved except the fluted phrase of a solitaire in a drip-
first specimen of the rarest bird in the wings of parasites.” ping cloud forest, pausing to savor
world, the Nechisar nightjar, they’d the perfect melding of sound, scent
have scraped the sand for each brittle and place; then finally putting bin-
bone and matted feather. There are many species oculars on the singer for an electri-
Two decades later, author Vernon cally intimate connection: This is
R.L. Head set out to Ethiopia as part of nightjars in Ethiopia; the essence of birding.
of a team of four, to look for the liv- the problem is to find the As these birders know, “discover-
ing bird. They were on a naturalist’s ing” a species may not be the best
errand but also an artistic one, to one no one has seen alive. thing for it. The Spix’s macaw, dis-
witness and possibly photograph the covered in 1817 by Johann von Spix,
nocturnal owner of this dried wing in lived in Brazil, but “collectors of cage
life; to bring it, through their quest, Mr. Head, a bird-watcher and ac- birds so coveted it that just a hun-
into the world of the known and liv- tive conservationist, was joined by Ian dred and eighty years after its dis-
ing; and to give it color and voice Sinclair, an ornithologist and the au- covery it was extinct in the wild. . . .
and presence. This all-consuming, thor of multiple books on African Today this macaw knows only the
JULIE ZICKEFOOSE
panoramic experience is magically birds; Dennis Weir, a retired police of- shadows of wire mesh, flying in
captured in the measured pace and ficer and preternaturally expert birder stunted space. . . . Our greed for its
erratic but studied progress of Mr. from Belfast; and New York birder beauty has ultimately stolen this bird
Head’s exquisite book, “The Rarest Gerry Nicholls. Through the author, from the wild.” A deep reverence for
Bird in the World.” we come to see how there are differ- all creatures, especially the last and
There are many species of nightjars ent species of birders, just as there ing red warmth. . . . We watched as a story as a sort of punctuated mem- fewest, suffuses this book with an
populating the profound darkness of are different species of birds. hummingbird came to laugh. Gerry oir of other such quests, embroi- oddly hopeful melancholy. The seek-
the Nechisar plains; the problem for It was Mr. Sinclair, Mr. Head laughed with the bird. We laughed dered by musings on conservation, ers find their nightjar. More study is
the travelers is to find the one that no writes, who “showed me how to together. The bird buzzed: back- rarity and extinction. Mr. Head has needed. But it hardly matters; the
one has seen alive. And this must be sense a bird, how to smell it with the wards, upwards, downwards, then spent much of his life witnessing the search and Vernon Head’s telling are
done by torchlight, from a rolling ve- ears.” Later, the author describes forwards, and jerked into a new posi- last stand of a number of bird spe- more than satisfying enough.
hicle. They know nothing of the bird’s spotting a rare hummingbird on his tion on the air. To us it seemed to be cies, and the refreshing oddity of the
natural history, or why it has never first birding expedition with Mr. having fun. Blurred wingless, its long stories he spins lights the way. Of Ms. Zickefoose is the author and
been seen before. They’ll be lucky just Nicholls: “He had found a shard of tail hung like a flying snake—air- the vanishing Liben Lark of south- illustrator, most recently, of “Baby
to glimpse it, much less come away sunshine shaped by the forest that borne, floating and white in tassels.” eastern Ethiopia he writes: “We had Birds: An Artist Looks Into the Nest.”
OPINION
REVIEW & OUTLOOK Panama Bernie
Bernie Sanders caused tually go searching for their own pri-
A Dutch Warning for Europe the Panama Papers.
Bernie of Vermont
vate Panama. When private capital is
under public assault, it will hide.
T
he answer to the question in Wednes- Mr. Rutte’s loss is all the more remarkable didn’t do it by himself, From the wealthiest to the poorest, it
day’s Dutch referendum should have given how well the Dutch have come to under- of course. The world’s creates a world of chiselers, not pro-
most famous socialist, ductive citizens.
been easy: Should the Netherlands rat- stand the dangers of Mr. Putin’s ambitions.
and Hillary Clinton’s Sen. Sanders gave his Wisconsin
ify the European Union’s trade Amsterdam was the origin of WONDER
albatross, had a lot of victory speech in Laramie, Wyo., back-
agreement with Ukraine? That Mainstream leaders Malaysia Airlines Flight 17, LAND
help. Spare me the grounded by the smiling, bobbing
the “No” campaign thumped By Daniel
“Yes” by a 61%-38% margin is
failed to make the case shot down in 2014 by Russia-
armed rebels in eastern Henninger
crocodile tears over heads of his 20-something voter base.
the immorality of tax In Western Europe, which is Sanders
a symptom of the failure of for backing Ukraine. Ukraine. One hundred and avoidance. Panama is Land, those 20-somethings are the
the political center in the ninety six Dutch citizens were an indictment of government greed. subject of a permanent economic disci-
Netherlands, and in Europe. killed in that attack. After World War II, the govern- pline called high youth unemployment.
The Dutch political class was surprised by The explanation is two-fold. The Dutch gov- ments of the West established tax re- The Sanders campaign isn’t about
the referendum on the EU association agree- ernment, in line with many of its EU peers, has gimes to support the reconstruction of idealism. It’s about the misallocation
ment with Ukraine, which was forced when an consistently failed to explain to voters what’s their nations. Six decades later, that of capital. “Misallocation of capital” is
tax machinery, which runs the social- a phrase utterly alien to socialists, and
“anti-establishment” political blog garnered at stake in Ukraine and persuade them that
welfare states in the countries Bernie increasingly to most of the modern
the 300,000 signatures necessary to call such standing with Kiev is in the best interests of the Sanders cites in every campaign stop Democratic Party.
a vote. At first the liberal-labor coalition of rest of Europe. The EU itself is also so unpopu- as a model for America, has run totally
Prime Minister Mark Rutte tried to ignore the lar among European voters—not least because amok—an unaccountable, devouring
looming vote, hoping turnout below the requi- its political class is imperious and often unac- monster. Billionaires aren’t the only His politics produced
site 30% would nullify the result. Only belat- countable—that campaigners could turn this ones who run from it.
edly did Mr. Rutte and others realize they vote into a referendum on the EU. Why support Most governments, including Amer- the Panama Papers,
needed to campaign actively for the deal with EU foreign policy if you hate Brussels? ica’s, overtax their citizens to feed an indictment of
Ukraine, and by then they were too far behind The practical effects of the vote will be lim- their own insatiable need for money.
Then the legal thieves running the government greed.
their opponents. ited, since the referendum is nonbinding and
The result is an embarrassing rebuke to Eu- only 32% of voters turned out. But the warning government and their cronies, unwill-
ing to abide the tax levels they cre-
rope’s policy of engaging with Ukraine as a is clear for European leaders and their allies. ated, move their wealth offshore to In the now-extinct Democratic
check on Vladimir Putin’s Russian expansion- Europe can’t have an effective foreign policy places like Panama. Arguably, all the Party—the party of Hubert Humphrey,
ism. Russian Prime Minister Dmitry Medvedev if leaders won’t educate their citizens about world’s people should be able to move Jimmy Carter and Bill Clinton—room
welcomed the vote on Twitter, writing that the foreign affairs—and the EU itself will struggle their assets “offshore” to escape gov- existed for the private sector to
result was “an indicator of the Europeans’ atti- to be a reliable partner so long as doubts re- ernments that are smothering eco- breathe. Not yet unhinged completely
tude to the Ukrainian political system.” main about its democratic legitimacy. nomic life and growth, which has from economics, Democrats under-
stalled in the U.S., Europe and Asia. stood the symbiosis between healthy
Speaking of crocodile tears, Barack private production and public reve-
Jack Lew’s Political Economy Obama spent Tuesday bragging that
corporate tax inversions are akin to
nues. Both Presidents Carter and Clin-
ton deregulated economic life.
C
Panama Papers’ tax avoidance. Mr. No longer. The deconstructed party
EOs have learned to keep mum in the ment planning necessary to compete,” Mr. Read
Obama said “corporations,” another of Barack Obama, Elizabeth Warren,
Obama era, lest their companies be writes. “The new ‘rules’ show that there are no swearword invoked by Mr. Sanders at Bernie Sanders and forced-recruit
punished like J.P. Morgan after Jamie set rules. Political dogma is the only rule.” every stop, are “gaming the system.” Hillary Clinton says: Just keep
Dimon criticized some parts He’s right, as every CEO we Well what about that “system?” Mr. squeezing them.
of Dodd-Frank. So it’s worth Pfizer’s CEO nails the know will admit privately. This Obama is saying, with Bernie Sanders This week marked a historic mo-
noting the candid reaction reason for slow growth politicization has spread and Hillary Clinton in his echo cham- ment in the Democratic drift toward
after a new U.S. Treasury across most of the economy ber, that U.S. corporations should low-growth Euro-socialism. Both Cali-
rule scuttled the merger be- and small wage gains. during the Obama years, as suck it up on America’s 35% corpo- fornia and New York raised the mini-
tween Pfizer Inc. and Aller- regulators rewrite long-stand- rate-tax rate, the developed world’s mum wage to $15. California Gov.
gan PLC. ing interpretations of long- highest, and simply send that money Jerry Brown, who in his career has
The companies ended their $150 billion tie- standing laws in order to achieve the policy to him. Why? Because he’s gotta have been every Democrat that ever was,
it. To spend. summarized the true meaning of the
up after Treasury Secretary Jack Lew issued goals they can’t or won’t negotiate with Con-
Other than their national health- new party. “Economically, minimum
new rules that made it harder for companies gress. Telecoms, consumer finance, for-profit care systems, many of which are effec- wages may not make sense,” he said,
like Pfizer to move to Ireland to legally lower education, carbon energy, auto lending, auto- tively bankrupt, most Europeans would but they make sense “morally, so-
their taxes. Pfizer will have to pay Allergan a fuel economy, truck emissions, home mortgages, be hard put to explain what it is their cially and politically.”
breakup fee of $150 million, though Allergan health care and so much more. high-tax governments actually do with It has been my view for some time
shares are still down more than $10 billion Capital investment in this recovery has been their money. that to help her navigate Bernie’s new
since the Treasury ambush. disappointingly low, and one major reason is Suppressed for generations by Democratic world Hillary Clinton
Pfizer CEO Ian Read defends the company’s political intrusion into every corner of business high tax rates and regulatory minu- should bring in Lady Gaga as a consul-
planned merger in an op-ed nearby, and his decision making. To adapt Mr. Read, the only tiae, most Europeans survive in an tant. An expert in magic realism.
larger point about capricious political power rule is that the rules are whatever the Obama economic half-life of gray and black Sen. Sanders is getting mocked now
helps explain the economic malaise of the past Administration wants them to be. The results markets, with their assets protected by Hillary Clinton and her supporters
by cash-only transactions, bartering for a catastrophic interview he gave
seven years. “If the rules can be changed arbi- have been slow growth, small wage gains and and endless hours devising off-the- this week to the New York Daily News,
trarily and applied retroactively, how can any a growing sense that there is no legal restraint books deals involving family real es- revealing he knows little about his own
U.S. company engage in the long-term invest- on the political class. tate, inflated art prices and anything proposals. But France’s Socialist Presi-
else they can hide from the taxman. dent François Hollande knew every-
The Beatles actually wrote a song thing about his economic proposals.
Backward to Athens about it in 1966—“Taxman,” a grim What difference does it make?
I
ode to all this. The day before losing to Bernie
t’s been nearly five months since Greece’s to increase pension contributions—also known Governments with unsated “needs” Sanders in Wisconsin, Mrs. Clinton ar-
last near-crisis, so another financial tremor as taxes—even further to preserve benefits. Ath- for revenue exist in Europe, Africa, gued: “I think we need a nominee
was overdue. Sure enough, a general strike ens is dragging its feet implementing a bank- Russia and South America. The Associ- who’s been tested and vetted already.
ated Press this week reported that in For 25 years they’ve thrown every-
this week came as Prime Min- ruptcy-law overhaul and priva-
Russia today shell companies exist thing they could at me, but I’m still
ister Alexis Tsipras heats up No one else can save tizations mandated by last simply to pay the bribes that are the standing.”
his feud with Greece’s credi- Greece if Greece year’s bailout. price of daily life. Tested, vetted and still standing. On
tors and the creditors feud The main “reform” Athens One way or another, most people the available evidence so far, that isn’t
with each other. won’t save itself. has managed so far are some of living in the countries run on the this year’s criteria for the American
The trigger is the long- the tax increases creditors de- Obama-Sanders-Clinton model even- presidency.
delayed review of the bailout manded, including applying
deal Greece struck in August. The review is sup- the 23% value-added tax to a larger number of
posed to measure Athens’s progress on imple- goods and imposing new personal-income and LETTERS TO THE EDITOR
menting fiscal and supply-side reforms as a corporate taxes. Greece’s first two bailouts in-
prelude to unlocking the next tranches of aid creased revenue as a percentage of gross domes-
due under that €86 billion ($97.85 billion) tic product to nearly 36% in 2014 from around
No Wonder U.S. Manufacturing Has Fled
agreement. Athens will need another of those 31% before the 2010 crisis, according to the William A. Galston provides a ful. Assuming the facility is approved,
payouts, of nearly €6 billion, to make a €2.8 bil- OECD, and that percentage will have risen since. thoughtful discussion about the loss they factor in the costs of union-level
lion debt repayment due to the European Cen- Creditors seem to think this is good for the bud- of U.S. manufacturing, exploring the wages and benefits, including man-
tral Bank in July. get, but it’s a growth killer. impact of imports, which is another dated health care along with require-
But there’s not much progress to review. Re- All of which is worth remembering as Mr. way of saying that manufacturing ments necessary to comply with
forms to pensions, one of Athens’s biggest bud- Tsipras demands substantial debt relief, the In- and employment have moved over- Dodd-Frank. The list goes on.
get lines, remain undone. Mr. Tsipras’s left-wing ternational Monetary Fund argues for some debt seas (“Why Trade Critics Are Getting Completing the analysis, they find
Syriza party is debating cuts to benefits for re- forgiveness, and Germany resists any write- Traction,” Politics & Ideas, March 31). that covering these costs and making
tirees who enjoy the most generous payouts, a downs at all. No amount of debt will be sustain- This is attributed by some to the ve- a reasonable profit requires pricing
nality of and lack of patriotism by every pair of socks at $50. Alterna-
class that includes many pro-Syriza government able if the Greek economy isn’t growing, and
managers in the U.S. There is another tively, they could open the new plant
unions that launched Thursday’s national strike. Greece can’t get the growth spurt it needs with- dimension that must be considered. overseas and continue to price their
Creditors are blocking Syriza’s Plan B, which is out supply-side reforms. The board of a sock manufacturer socks at $4.
concludes that it needs another The simple fact that the U.S. is the
plant. The CEO and CFO do an analy- most expensive and problematic
America’s East Asian Bargain sis for opening a new plant in the place in the world to manufacture
N
U.S. They factor in the highest corpo- products must be taken into account.
ew Japanese laws took effect last week southern Japan, and 100% of the roughly $12 bil- rate-tax rate in the world along with Until the U.S. becomes a more at-
that empower Japan’s military to defend lion to replace the Futenma facility on the south- the costs of preparing the required tractive place for manufacturing,
U.S. forces that come under attack, even western island of Okinawa. Tokyo is even paying EPA applications and a multiyear de- don’t expect it to return.
if Japan isn’t targeted. Count this as one of many 36% of the $3 billion needed for new U.S. facili- lay while the EPA considers it with- BILL EMERSON
out knowing if they will be success- West Palm Beach, Fla.
important facts Donald Trump overlooks when ties on the central Pacific island of Guam, which
he blasts U.S. allies and proposes withdrawing is U.S. territory.
from the Western Pacific. South Korea spends about 2.5% of GDP on de-
“We take care of Japan, we take care of South fense, which is lower than America’s 3.5% but still The Icann 55 Internet Proposal Is a Good One
Korea” and “we get virtually nothing” in return, in the world top 10. Its military, backed by univer- In “Stopping Obama’s Internet While the quote is correct, and
Mr. Trump said last month. He threatens to rene- sal male conscription, is the world’s front line Giveaway” (Information Age, March while I respect Mr. Crovitz’s view-
gotiate or abrogate the long-standing treaties against the nuclear arsenal, long-range missiles 22), L. Gordon Crovitz quotes a pas- point, I wish to make clear that I
under which the U.S. today bases some 50,000 and global-proliferation racket of North Korea. sage from my March 2 CircleID.com am not opposed to the final IANA
troops in Japan and 28,000 in South Korea. Japan is the leading local bulwark against Chi- article in which I was critical of for- transition and accompanying Icann
But these aren’t one-sided or unaffordable nese domination of East Asia. Spending 1% of GDP mer Icann CEO Fadi Chehade’s less accountability proposals. The pack-
deals. Tokyo and Seoul now pay nearly half of lo- on defense is too little, but Japan has increased than complete response to a letter age just adopted at Icann 55 in Mar-
of inquiry from three senators. rakesh is a sound blueprint that,
cal U.S. military costs—some $2 billion a year for spending for four years running.
I had previously questioned the while composed of interdependent
Japan and $900 million for South Korea. The U.S. At significant political cost, the Abe govern- propriety of the December 2015 an- compromises, will nonetheless pro-
troops based there cost the U.S. taxpayer less ment reinterpreted Japan’s U.S.-imposed consti- nouncement that Mr. Chehade, vide a substantial improvement in
than they would if they came home. And that’s tution to allow “collective self-defense,” paving while still an employee of the In- the accountability of Icann’s board
without counting their value in sustaining de- the way for the new laws that took effect last ternet Corporation for Assigned to its multistakeholder community if
cades of peace and prosperity in a region previ- week. Tokyo can now defend the U.S. against Names and Numbers, and absent faithfully implemented over the
ously marked by catastrophic wars. North Korean missiles. Whenever U.S. ships pa- advance notice to the Icann board, coming months.
The four largest U.S. military-construction trol the South China Sea, Chinese planners now had agreed to be co-chair of the PHILIP S. CORWIN
projects in the Pacific are costing U.S. taxpayers must also account for Japan’s fleet, which is advisory committee to China’s Washington
only $7 billion because Japan and South Korea larger than Britain’s. World Internet Conference. WIC ap-
pears to have the aim of supplant-
are paying more than $30 billion. According to Japan’s Prime Minister Shinzo Abe and Singa- Letters intended for publication should
ing Icann’s multistakeholder model be addressed to: The Editor, 1211 Avenue
an April 2015 tally from U.S. Pacific Command, pore’s Prime Minister Lee Hsien Loong have gone with multilateral government domi- of the Americas, New York, NY 10036,
Seoul is providing 93% of the nearly $11 billion public recently praising the U.S. role in Asia and nance, and to oppose the version of or emailed to [email protected]. Please
needed to expand Camp Humphreys, which is set warning about the damage from a short-sighted Internet Governance that abhors include your city and state. All letters
to host almost all U.S. forces in Korea by 2017. withdrawal. Americans should understand that the type of state information cen- are subject to editing, and unpublished
Tokyo is paying 94% of the nearly $5 billion these countries are not free riders and forward sorship exemplified by China’s so- letters can be neither acknowledged nor
returned.
needed at Marine Corps Air Station Iwakuni, in deployments in Asia are crucial to U.S. security. called Great Firewall.
OPINION
An Overheated Climate Alarm

By Bjorn Lomborg The Lancet researchers found lead to a net reduction in deaths in
T
that about 0.5% of all deaths are both the U.K. and Australia. In
he Obama administration associated with heat, not only from England and Wales today, the au-
released a new report acute problems like heat stroke, but thors write, statistics show that
this week that paints a also increased mortality from car- heat kills 1,500 people and cold
stark picture of how cli- diac events and dehydration. But kills 32,000. In the 2080s, they cal-
mate change will affect more than 7% of deaths are related culate that increased heat will kill
human health. Higher temperatures, to cold—counting hypothermia, as an additional 3,500. But they find
we’re told, will be deadly—killing well as increased blood pressure that cold deaths will drop by
“thousands to tens of thousands” of and risk of heart attack that results 10,000. In Australia the projections
Americans. The report is subtitled when the body restricts blood flow suggest 700 more heat deaths but
“A Scientific Assessment,” presum- in response to frigid temperatures. 1,600 fewer cold deaths.
ably to underscore its reliability. In the U.S. about 9,000 people die Globally, one estimate of the
But the report reads as a political from heat each year but 144,000 health effects of climate change,
sledgehammer that hypes the bad die from cold. published in 2006 by Ecological
and skips over the good. The administration’s new report Economics, shows 400,000 more
It also ignores inconvenient evi- refers to this study—it would be respiratory deaths (mostly from
dence—like the fact that cold kills difficult to ignore, since it is the heat) by midcentury, but 1.8 mil-
many more people than heat. world’s largest—but only in trivial lion fewer cardiovascular deaths
ways, such as to establish the rela- (mostly from cold).
tionship between temperature and In pushing too hard for the case
The White House launches mortality. Not once does this “sci- that global warming is universally
entific assessment” acknowledge bad for everything, the administra-
a scary campaign about that cold deaths significantly out- tion’s report undermines the rea-
deadly heat. Guess what: weigh heat deaths. sonable case for climate action. Fo-
The report confidently claims that cusing on only the bad side of the
Cold kills more people. when temperatures rise, “the reduc- ledger destroys academic and politi-
tion in premature deaths from cold cal credibility.
are expected to be smaller than the Although there is a robust intel-
Climate change is a genuine increase in deaths from heat in the lectual debate on heat and cold
problem that will eventually be a United States.” Six footnotes are deaths, there is a much simpler way
net detriment to society. Gradually attached to that statement. But one to gauge whether people in the U.S.
rising temperatures across decades of the cited papers doesn’t even esti- consider higher temperatures pref-
will increase the number of hot mate cold deaths; another flat-out erable: Consider where they move.
days and heat waves. If humans disagrees with this assertion, pro- Migration patterns show people
make no attempts whatsoever to jecting that cold deaths will fall more heading for warm states like Texas
adapt—a curious assumption that than heat deaths will rise. and Florida, not snowy Minnesota
the report inexplicably relies on Further, the figure that made it and Michigan.
ISTOCK
almost throughout—the total num- into news reports, those “tens of That’s the smart move. A 2009
ber of heat-related deaths will thousands” of additional deaths, is paper in the Review of Economics
rise. But correspondingly, climate wrong. The main model that the and Statistics estimates that be-
change will also reduce the num- administration’s report relies on to die from moderate cold. In London, outweigh extra heat deaths in the cause people seek out warmth,
ber of cold days and cold spells. estimate temperature-related mor- more than 70% of all cold-related 2020s. Even near the end of the slightly more die from the heat, but
That will cut the total number of tality finds, in a worst-case sce- deaths occur on days warmer than century, in the 2080s, the EU study many fewer die from the cold. In to-
cold-related deaths. nario, 17,680 fewer cold deaths in 41 degrees Fahrenheit. Although ex- projects an increase in heat deaths tal, the actions of these sun-seekers
Consider a rigorous study pub- 2100, but 27,312 more heat deaths— treme temperatures are more of “between 60,000 and 165,000” avert 4,600 deaths in the U.S. each
lished last year in the journal Lancet a net increase of 9,632. deadly, they occur only a few days and a decrease of cold deaths of year. You won’t be surprised to
that examined temperature-related Moreover, the model considers or weeks a year, whereas moderate “between 60,000 and 250,000.” In learn that the study wasn’t men-
mortality around the globe. The re- cold deaths only from October to cold comes frequently. other words, the effects will proba- tioned in the administration’s half-
searchers looked at data on more March, focusing on those caused by Thus, one of the central findings bly balance each other out, but baked report.
than 74 million deaths in 384 loca- extreme temperatures in winter. in the administration’s new report warming could save as many as
tions across 13 areas: cold countries Most cold deaths actually occur is contradicted by a large number of 85,000 lives each year. Mr. Lomborg, director of the
like Canada and Sweden, temperate during moderate temperatures, as scientific studies from around the An academic paper published Copenhagen Consensus Center, is
nations like Spain, South Korea and the Lancet study shows. In the U.S., globe. A 2009 paper from the Euro- two years ago in Environmental the author of “The Skeptical Envi-
Australia, and subtropical and tropi- about 12,000 people die from ex- pean Union expects that the reduc- Health Perspectives similarly ronmentalist” (Cambridge Press,
cal ones like Brazil and Thailand. treme cold each year but 132,000 tion in cold deaths will definitely shows that global warming will 2001) and “Cool It” (Knopf, 2007).
Obama Is Wrong About Pfizer’s Merger and Growth

By Ian Read significant. In Cambridge, Mass., or so-called inversions. It sur- tax avoidance. No one was shirking global stage so that we can con-
I
where Pfizer has a state-of-the-art prised many because Treasury their U.S. tax bills. In a merger tinue to invest in the U.S. is wrong-
n the pharmaceutical industry research lab, we are surrounded by Secretary Jack Lew said in 2014 with Allergan PLC, an Irish com- headed. Government policy should
we develop medicines and foreign-owned competitors’ facili- that “we do not believe we have pany, we would have continued to encourage investment certainty and
therapies to address world- ties. When those companies invest the authority to address this in- pay all federal, state and local taxes job creation. Combining these two
wide health challenges. The work in their facilities, it is often as version question through adminis- on our U.S. income. All that these businesses would have had a posi-
is complex and deeply gratifying. much as 25% to 30% cheaper than trative action. If we did, we would new rules will do is create a per- tive impact on the lives and liveli-
At Pfizer we employ more than every dollar we put into research be doing more. That’s why legisla- manent competitive advantage for hoods of many people.
30,000 highly skilled people in the and jobs. Why? Because our com- tion is needed.” foreign acquirers. Simply put, there While the Treasury’s proposal is
U.S. alone and invest almost $8 petitors don’t have to pay the pen- will be more foreign acquisitions of a shot at Pfizer and Allergan, this
billion annually in R&D, much of it alty imposed on U.S. corporations U.S. companies resulting in fewer unilateral action will hurt other
in the U.S. bringing earnings back to America. A broken tax system puts jobs for American workers. companies as well. If the rules can
Surely we benefit from world- We can invest less—because of a America’s companies at a What fails to get noted is our be changed arbitrarily and applied
class academic institutions, a broken tax system. steadfast commitment to science retroactively, how can any U.S.
highly skilled labor force and other Pfizer has long worked with competitive disadvantage. and good corporate citizenship. company engage in the long-term
attractions of doing business in the Congress to make the U.S. tax sys- More than half of Pfizer’s 1,000- investment planning necessary to
U.S. But the important point is so tem more competitive and fair. In plus R&D collaborations take compete? The new “rules” show
do our foreign competitors. And the absence of tax reform, we un- This week’s Treasury action in- place in the U.S., where our part- that there are no set rules. Political
they pay significantly less for the dertook a proposed merger with Al- terprets the tax laws in ways ners include academic hospitals, dogma is the only rule.
privilege. So we compete in a lergan PLC in good faith and after never done before. This ad hoc government organizations, non- Pfizer will continue to make
global marketplace at a real disad- intense study and review of current and arbitrary attempt to single profits, foundations, patient advo- medicines that significantly im-
vantage. The U.S. tax code has laws. This strategic transaction, out and damage the growth oppor- cacy groups and other pharma prove lives. We are proud of our
among the highest rates in the driven by strong commercial and tunities of companies operating companies. heritage, our commitment to pa-
Western world and forces its multi- industrial logic, would have made it within the current law is unprece- Companies like Pfizer and Aller- tients and we will continue to drive
nationals to pay U.S. tax on income easier to invest in the U.S. dented, unproductive and harmful gan contribute to the communities for cures.
earned abroad if they want to bring On Monday the U.S. Treasury to the U.S. economy. in which we operate. To be pillo-
it back to this country. announced a third set of new rules The action was accompanied by ried as “deserters” when we are Mr. Read is chairman and chief
The real-world consequences are governing corporate redomicilings, much unfortunate rhetoric about trying to stay competitive on a executive officer of Pfizer Inc.
Yemen’s Looming Migrant Crisis

By Mohammed Abdiker that they will embark on journeys tion’s (IOM) Migrants Response Further complicating matters: when a bullet pierced the wall he
that can seem almost biblical. Center here. Human smugglers tell Because any African labor crossing was hiding behind.
T
Obock, Djibouti Known as the “gateway to grief,” the migrants that because of the Yemen is, by definition, unregu- Making matters worse, many mi-
hey arrive daily by the hun- the strait’s treacherous waters have raging violence in Yemen, “now is a lated, governments of the region grants end up as pawns in a propa-
dreds now. Frustrated univer- swallowed more than 3,700 African good time to try to go back to simply don’t know how many have ganda war, with both sides to the
sity graduates unable to find migrants since 2006. Across the 28- Saudi Arabia,” Mr. Al-Jefri says. In- successfully made the journey. Until Yemeni conflict claiming the other
jobs at home; drought victims kilometer strait lies Yemen, a coun- stead, it’s the worst time. humanitarian organizations like is arming these outsiders as merce-
who’ve seen their livestock perish; try ravaged by bitter conflict. But to Take Dawit Deresseh, an Ethio- IOM gain access to them, details on naries. As a result, upon being in-
victims fleeing violence spawned by these job seekers—overwhelmingly pian migrant. Mr. Deresseh, 30 and the migrants’ conditions will re- tercepted these migrants will lan-
religious or tribal conflict. Ethiopian, with a few Somalis, Suda- landless, had already crossed Dji- main murky. But what we do know guish in government facilities, often
Two months ago, it was perhaps nese and Eritreans—the conflict is bouti twice in the past 12 months. is that thousands of migrants have without sufficient food, medical at-
only several dozen a night, every no deterrent. If anything, it has be- He made one trip last year to a already been kidnapped by smug- tention or proper sanitation, until
one of these men and, increasingly, come an important selling point for construction job in Saudi Arabia, gling gangs operating across the they are released for lack of funds
women, arriving on foot, sometimes those arranging passage. but was repatriated with IOM’s Yemeni countryside, holding men to care for them.
having walked for months to reach “Saudi Arabia is their destina- help after losing his arm in a car and women for ransom. While it’s no secret that merce-
this seaport. So eager are they to tion. Many are returning to jobs wreck. He explained that he was in naries are operating in Yemen, we
cross the Bab el Mandeb, a danger- they had there before,” says Ali Ab- a smuggler’s vehicle with 26 other don’t believe either side is recruiting
ous stretch of water separating dallah Al-Jefri, who directs the In- pilgrims when it struck a land Africans risk a perilous destitute, weak and abused Ethio-
them from the Arabian Peninsula, ternational Organization for Migra- mine near the Saudi border. “All 27 pian migrants. Many make this peril-
came from Ethiopia,” he said. Ev- sea crossing and a trek ous crossing simply to return to jobs
eryone else was killed. Nonethe- through a war zone seeking they once held, after having been ex-
less, within months of returning to pelled due to changes in work-per-
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY Ethiopia, he was back again to jobs in Saudi Arabia. mit regulations—a common occur-
cross the Bab el Mandeb, so des- rence in the migrant world whenever
Rupert Murdoch Robert Thomson
Executive Chairman, News Corp Chief Executive Officer, News Corp perate are he and his family for a authorities promise to crack down
Gerard Baker William Lewis regular income. In March, after IOM helped 300 on irregular workers.
Editor in Chief Chief Executive Officer and Publisher With the world’s attention on the Ethiopians return from Yemen, While few migration emergencies
Rebecca Blumenstein, Matthew J. Murray DOW JONES MANAGEMENT:
million-plus migrants and refugees many of the them told us of the match Yemen for the severity of the
Deputy Editors in Chief Ashley Huston, Chief Communications Officer; streaming across the Mediterranean hardships they endured at the terror being inflicted on its victims,
DEPUTY MANAGING EDITORS: Paul Meller, Chief Technology Officer; from Syria to the European Union, hands of kidnappers. “Ahmed” told what’s happening in this region is
Mark Musgrave, Chief People Officer;
Michael W. Miller, Senior Deputy;
Edward Roussel, Chief Innovation Officer;
the deadly route running through of brutal torture and raping and part of a growing world-wide
Thorold Barker, Europe; Paul Beckett, Asia;
Christine Glancey, Operations; Jennifer J. Hicks, Anna Sedgley, Chief Financial Officer; Djibouti can seem almost a side- killings. “Ali” related how his sib- scourge of violence wherever mi-
Digital; Neal Lipschutz, Standards; Alex Martin, Katie Vanneck-Smith, Chief Customer Officer show. It will soon take center stage. lings in Saudi Arabia had to pay grants roam. Wherever govern-
News; Ann Podd, Initiatives; Andrew Regal, Video;
OPERATING EXECUTIVES: Many of these migrants—already the kidnappers 10,000 Saudi riyal ments permit unregulated migra-
Matthew Rose, Enterprise; Stephen Wisnefski,
Professional News; Jessica Yu, Visuals
Nancy McNeill, Corporate Sales; about 10,000 have been counted ($2,668) for his release. But he tion to fester, regulation is reduced
Steve Grycuk, Customer Service; since January, compared to about considers himself fortunate, la- to the whims of smugglers, often
Paul A. Gigot, Editor of the Editorial Page; Jonathan Wright, International;
Daniel Henninger, Deputy Editor, Editorial Page DJ Media Group: 80,000 for all of 2014—are part of menting how others didn’t share violent criminals who value profits
WALL STREET JOURNAL MANAGEMENT: Almar Latour, Publisher; Kenneth Breen, a growing population of vulnerable his fate, describing the inhuman over human rights and human lives.
Trevor Fellows, Head of Global Sales; Commercial; Edwin A. Finn, Jr., Barron’s; men, women and children who have cruelties he witnessed. Migrant passage everywhere should
Chris Collins, Advertising; Jason P. Conti, Legal; Professional Information Business:
Suzi Watford, Marketing and Circulation; Christopher Lloyd, Head; disappeared upon leaving Djibouti. But even under the protection of be legal, safe and secure for all.
Joseph B. Vincent, Operations; Ingrid Verschuren, Deputy Head Some have died at sea trying to en- organizations like ours, migrant
Larry L. Hoffman, Production ter Yemen, including 44 confirmed safety can’t be guaranteed. Last Mr. Abdiker is the director of the
EDITORIAL AND CORPORATE HEADQUARTERS: drowned so far this year. Others month, armed men entered our cen- department of operations and
1211 Avenue of the Americas, New York, N.Y., 10036 have been kidnapped or tortured. ter in Hodeidah firing their weap- emergencies at the International Or-
Telephone 1-800-DOWJONES
The exact numbers are still unclear. ons, killing a 16-year-old migrant ganization for Migration.
ARTS & ENTERTAINMENT
MERLE HAGGARD (1937-2016):
Brilliance Born in a Boxcar

APPRECIATION
JIM FUSILLI COUNTRY PROUD
Merle Haggard
performing
THE SONGS OF MERLE HAGGARD, a bard of circa 1985.
the working man, had their roots in country,
but they inspired musicians in other genres
of American music as well. As a linchpin of
the so-called Bakersfield sound, which
added an earthy edge to the kind of country
coming from Nashville, Tenn., Mr. Haggard
foreshadowed outlaw country and country
rock, and for more than 50 years composed,
sang with a rich, penetrating baritone and
played songs that blended a firsthand
knowledge of life’s trials and travails with a
fervent hope for better times ahead. He died
on April 6, his 79th birthday.
As a boy, Mr. Haggard began to compile
trying experiences that would serve him
well as a songwriter. Merle Ronald Haggard
was born in a converted boxcar in Oildale,
Calif., just outside of Bakersfield. After his
father died suddenly while Merle was still a
child, Mr. Haggard began to teach himself
guitar and to commit crimes that started off
petty but escalated in their severity.
A promising musician with a voice influ-
enced by honky tonk’s Lefty Frizzell, by 1956
EBET ROBERTS/REDFERNS/GETTY IMAGES

Haggard was playing clubs and roadhouses.
But a robbery led to confinement in San
Quentin Prison. After witnessing a Johnny
Cash concert at the fabled penitentiary, Mr.
Haggard joined a country group in prison and
earned his high-school equivalency diploma.
Mr. Haggard signed on with Wynn Stew-
art’s band as a bassist and, at the same
time, began a solo career. When his third
single, “(My Friends Are Gonna Be) Strang-
ers,” landed high on the Country & Western
charts in 1964, he formed a band, the Country Music Association, as was the al- country charts. tenderness golden in the lines he sang.
Strangers, featuring a plucky electric guitar bum of the same name. Though it defined Mr. Haggard struggled with substance Mr. Haggard was inducted into the Nash-
played by Roy Nichols. His cover of “The Fu- Mr. Haggard, perhaps too narrowly, he also abuse and financial setbacks in the late ’80s ville Songwriters Hall of Fame in 1977 and
gitive,” released in 1966, became the first of composed a song that supported interracial and into the ’90s, though his reputation as a the Country Music Hall of Fame in 1994. He
his almost 40 No. 1 country hits, which in- love, “Irma Jackson,” which he released in songwriter remained stellar as covers of his received a Kennedy Center Honor in 2010
cluded his compositions “Mama Tried,” ’72. It was not as well-received as “Okie songs by contemporary singers charted and for his contributions to American culture.
“Workin’ Man Blues,” “Sing Me Back Home” From Muskogee.” appeared in films. In 2005, he released When his journey from a boxcar and a
and “If We Make It Through December.” By then, Mr. Haggard’s songs had crossed “America First,” a song that lamented the prison cell to the heights of popular music
Other Haggard compositions that became over into the rock-and-pop world. Joan state of the country’s infrastructure while the ended with his death, Mr. Haggard was
standards include “The Bottle Let Me Down” Baez, the Byrds, the Grateful Dead, the Nitty government was engaged in nation-building firmly established as an extraordinary com-
and “Today I Started Loving You Again,” Gritty Dirt Band and even Dean Martin cov- elsewhere. He issued his final solo album, poser and artist who spoke plainly from the
written with his wife Bonnie Owens. ered his songs. But Mr. Haggard remained “Working in Tennessee,” in 2011, and four heart to those who felt the power of his
In 1969, Mr. Haggard courted controversy committed to the country side of the ledger, years later he and Willie Nelson scored a No. convictions.
with his song “Okie From Muskogee,” in recording a 1970 tribute to Bob Wills and 1 album with “Django and Jimmie,” a tribute
which he disparages hippies and promotes western swing in which Mr. Haggard re- to Django Reinhardt and Jimmie Rodgers. Mr. Fusilli is the Journal’s rock and pop
traditional values. Embraced by Middle vealed his skills as a fiddle player. In the The 78-year-old Mr. Haggard was in fine music critic. Email him at [email protected]
America, the song was honored by the 1970s, he had 16 No. 1 hit singles on the voice, his characteristic blend of defiance and and follow him on Twitter @wsjrock.
Weather The WSJ Daily Crossword | Edited by Mike Shenk

Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
-15 1 2 3 4 5 6 7 8 9 10 11 62 Spill all
12 13
PUZZLE
-10
-5 14 15 16
63 Carnival dances CONTEST
Riga 64 Opening day
w
Glasgow 0
osco
Moscow 17 18 19 pitcher, probably
C p h g
Co
Copenhagen 5
65 Dress 24 Furtive
10 20 21
66 Home 28 Henry VIII’s third
15
Dublin
D bli li
Berlin arsaw
Warsaw 22 23 24 25 26 appearances, Catherine
A d
Amsterdam 20
and where to 29 “___ only a
25 27 28 29 30 31 32
London look for the game”
Brussels Frankfurt
kf 30
Pr
P
Prague
e
Kiev
33 34 35 36
contest answer 31 Pitch coincidence
35
Down 32 Starter’s words
Paris Munich
i h Vienna
V 37 38 1 Deserving of a
Warm 34 Sacramento
Budapest
d p 39 40 41 42 timeout paper
Geneva Cold 2 Make fun of, in 35 Breaks down
Milan Bucharest
h 43 44 45 a way
Stationary 36 Woman as an
46 47 48 49 50
3 Hauler’s unit object?
Showers 4 Cry of dismay
t b
Istanbul
38 Gray-headed
Rome 51 52 53 54 55 5 Montreal-based crow
Madrid
d id Rain
shoe store chain 40 Openly
56 57 58 59 60
Lisbon 6 Linguist
T-storms confessing
61 62 63 Chomsky 41 Jacket parts
Al i
Algiers T i
Tunis Athens
Ath
Snow 7 Sun block
64 65 66 42 Ballpark quaff
8 Make fun of, in
Flurries 47 Pro runner
Rabat
b a way
48 Unfocused dread
Ice CHASING A PITCH | By Marie Kelly 9 Behavioral
quirks 50 Ant’s prize
Global Forecasts City
Today
Hi Lo W
Tomorrow
Hi Lo W City
Today
Hi Lo W
Tomorrow
Hi Lo W
The answer to this 22 Make fun of, in 40 Three-under-par
10 Make one’s own 51 Not quite ready
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; week’s contest a way score on a hole for release
Geneva 10 4 c 12 4 sh Ottawa 1 -9 sf -1 -11 sf 11 What a man has
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice crossword is a 25 World Baseball 43 River near 52 “Lady
Hanoi 26 22 pc 28 22 pc Paris 13 4 pc 12 3 sh that a woman
Havana 29 19 s 28 18 s Philadelphia 12 3 pc 9 -1 sn Major League Classic uniform Balmoral Castle Marmalade”
doesn’t
Today Tomorrow Hong Kong 27 23 c 27 22 sh Phoenix 26 18 t 28 16 s Baseball team. letters 44 Opinions preposition
City Hi Lo W Hi Lo W Honolulu 29 21 pc 29 21 pc Pittsburgh 8 -3 sf 2 -7 sf 12 “Rhyme Pays”
Across 26 Tommy 45 Catcher Berg 53 Rush, e.g.
Amsterdam 11 4 pc 13 6 c Houston 26 12 pc 25 15 pc Port-au-Prince 32 21 pc 33 21 sh artist
Lasorda’s retired who worked as 54 Patty and
Anchorage 9 4 pc 9 4 c Istanbul 23 15 pc 22 14 pc Portland, Ore. 28 11 pc 22 8 pc 1 Site of fighting 13 Exchange areas
Athens 23 13 pc 23 13 t Jakarta 32 26 c 32 26 c Rio de Janeiro 32 24 s 32 25 s number a spy in WWII Selma’s niece
in early 1942 19 Lower in the
Atlanta 18 8 pc 16 4 s Johannesburg 19 9 c 21 10 pc Riyadh 33 17 t 32 19 s 27 Imperfectly 46 Restorative place 55 Caroline du Sud,
Baghdad 33 17 s 34 21 s Kansas City 16 -1 s 16 10 s Rome 20 11 t 17 7 t 7 Fillable flatbread country?
28 Sommelier’s 49 Pee Wee Reese’s par exemple
Baltimore 13 1 pc 9 -3 sh Las Vegas 22 14 sh 21 13 c Salt Lake City 23 12 pc 20 11 sh 11 Schnauzer 21 Sacrifice, at
suggestion retired number 58 Wizards’ gp.
Bangkok 37 29 s 37 28 s Lima 27 21 pc 27 20 pc San Diego 21 16 sh 19 15 r sound times
Beijing 25 9 s 29 7 s London 13 6 pc 11 3 r San Francisco 19 13 sh 19 12 sh 30 Joe holder 50 Euro division
14 Slayer of Niobe’s 33 Armada action 22 Took in 59 Mom’s order
Berlin 14 3 pc 15 6 pc Los Angeles 20 15 sh 18 13 r San Juan 31 23 pc 30 24 pc 51 Majorette, at 23 Soccer stadium
Bogota 20 11 pc 20 10 c Madrid 15 3 pc 17 6 pc Santiago 21 7 pc 20 6 s sons 60 Protested org.
35 River near times cheer
Boise 27 11 s 26 12 pc Manila 34 27 s 35 26 s Santo Domingo 31 21 pc 31 21 sh 15 Surrounded by of the 1960s
Boston 12 1 c 8 -2 c Melbourne 20 12 pc 22 14 c Sao Paulo 32 19 pc 33 20 s Tarascon Castle 56 Nicholson wore
Brussels 12 5 pc 14 5 c Mexico City 26 12 pc 27 13 pc Seattle 24 9 pc 19 8 pc 16 LXVII tripled 37 Company one in “The Previous Puzzle’s Solution
Buenos Aires 22 14 sh 20 12 r Miami 29 19 pc 28 19 s Seoul 18 6 s 19 8 pc 17 “Think nothing eschewers Shining” C E R F E L P A S O A P E
Cairo 39 29 pc 38 22 c Milan 19 9 t 18 8 c Shanghai 22 13 pc 22 12 pc of it” 38 Words after that 57 Player with a U S E R S O R T O F F O X
Calgary 24 6 pc 15 0 s Minneapolis 2 -6 pc 6 2 s Singapore 33 26 pc 33 27 pc J A N E T P R O F I T T O E
Caracas 31 25 pc 30 24 pc Monterrey 30 18 pc 27 17 sh Stockholm 10 2 c 10 0 pc
18 Rebounding shot or easy store O U T C R I E S L E V E R S
Charlotte 17 5 pc 13 -1 pc Montreal 5 -5 sf 1 -9 sf Sydney 23 18 pc 25 18 pc 20 Kickboxing and 39 Council member, 61 Phil Rizzuto’s K E E N N O R
H A I L E D Z E P P E L I N
Chicago 6 -4 sn 4 -2 pc Moscow 13 6 pc 20 11 c Taipei 28 20 pc 27 20 pc kendo perhaps retired number A N D E S R O A R M E G
Dallas 25 13 pc 24 16 pc Mumbai 34 27 pc 35 28 pc Tehran 22 12 pc 19 12 c MO B S S O A P Y G A V E
Email your answer—in the subject line—to [email protected]
s
Denver 18 6 pc 21 8 c Nashville 17 2 pc 12 2 s Tel Aviv 31 21 pc 33 21 pc S L R B O WS S E G E L

D A T A B L E H O P P E R S
Detroit 7 -4 sn 2 -7 sf New Delhi 36 21 pc 37 23 pc Tokyo 22 9 pc 21 11 pc by 11:59 p.m. Eastern Time Sunday, April 10. A solver selected at random C A R A T O P
Dubai 33 23 pc 31 22 t New Orleans 25 15 pc 24 16 s Toronto 4 -8 sf -2 -9 c will win a WSJ mug. Last week’s winner: Mandi Delahunty, Woodacre, CA. T H E W I Z B U T T E R U P
Dublin 9 0 r 7 1 t New York City 10 3 c 7 -2 sn Vancouver 19 7 pc 16 7 s O I L S I M I L E S T O N E
Edinburgh 11 4 pc 9 2 r Omaha 14 -3 s 15 9 s Washington, D.C. 14 3 pc 9 0 sn
Complete contest rules at WSJ.com/Puzzles. (No purchase necessary. A L E T O U T E R T A T A
Frankfurt 13 2 pc 14 6 pc Orlando 30 14 s 26 12 s Zurich 9 5 r 11 4 sh Void where prohibited. U.S. residents 18 and over only.) D O T A N G E R S O D O R
© 2016 Dow Jones & Co., Inc. All rights reserved. 6DJ3401
COVERAGE YOU TRUST. Discover the value of a WSJ Membership.

INSIGHT YOU NEED. A global economic slowdown, Brexit, the U.S. election and more—The Wall Street Journal brings
you the insight you need to understand the stories shaping your world. Become a member today to
LIMITED get 5-day paper delivery, unlimited access to WSJ.com, plus our smartphone and tablet apps.
TIME OFFER. Act now—only £1 for 2 months.
£1 FOR
2 MONTHS. Act Now
subscribe.wsj.com/journal1 +44 (0) 20 3426 1313
BUSINESS & TECH.

INSIDE:
MONEY &
INVESTING
A $5.19 Billion
Uber Rival Gathers Speed
SEAN GALLAGHER FOR WSJ
Bet on Junk Bonds

Didi Kuaidi’s valuation is more than $25 billion TECHNOLOGY | B3 MARKETS | B5
© 2016 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Friday - Sunday, April 8 - 10, 2016 | B1
Allergan
Wraps Up
VW Faces Clash With Labor Chiefs
BY WILLIAM BOSTON leaders, who in Germany also Mr. Diess wasn’t immedi-
Licensing BERLIN—Volkswagen AG’s

powerful labor leaders clashed
serve as influential directors
on the company’s supervisory
board, have so far backed
ately available for comment.
Karlheinz Blessing, board
member for human relations
Agreement publicly with the car maker’s

management on Thursday, ac-
cusing it of using its emis-
Chief Executive Matthias Mül-
ler as he spearheads a restruc-
turing and cost-cutting effort
at the Volkswagen parent com-
pany, said the company wel-
comed the labor leaders’ “offer
FABRIZIO BENSCH/REUTERS
BY DENISE ROLAND sions-cheating scandal as sub- at the company. to negotiate a long-term pact
terfuge for cost-cutting and Labor leaders took aim at for the future.”
LONDON—Allergan PLC job reductions. Herbert Diess, a top Müller Messrs. Osterloh and Diess
completed a licensing deal to The move represents a sig- deputy who has run the car don’t share the close relation-
develop drugs for Alzheimer’s nificant break in ranks at maker’s Volkswagen brand for ship the labor chief had with
and other neurological condi- Volkswagen, and it opens up a less than a year. Volkswagen’s his predecessor heading the
tions just hours after the col- new front in the car maker’s works council, in-house labor Volkswagen brand, Martin
lapse of its $150 billion tie-up battle to resolve the scandal, representatives close to the IG Labor leaders took aim at VW brand chief Herbert Diess, right. Winterkorn. Mr. Winterkorn
with Pfizer Inc., underlining amid several criminal and civil Metall trade union, wrote a also served as chief executive
its determination to move on probes, its own internal inves- scathing letter to staff, attack- factories in Germany. sue just a few months ago,” of the entire Volkswagen
as a stand-alone company. tigation, lawsuits and an ex- ing Mr. Diess and demanding a “We have the impression Bernd Osterloh, the influential group until resigning last year
Under the pact, Allergan will pensive effort to fix as many commitment to protect jobs that the diesel scandal is slyly head of the works council, said in the wake of the company’s
pay $125 million up front to as 11 million affected cars. The for the Volkswagen brand’s being used to make workforce in the letter to Volkswagen admission that many of its
Heptares Therapeutics, a U.K.- company’s most senior labor 120,000 employees at its six reductions that were not an is- employees. Please see VW page B2
based biotechnology company
wholly owned by Japan’s Sosei
Samsung Lowers Price to Broaden Appeal

Group Corp., plus $665 million
in milestone payments for the
successful completion of clinical
trials. A further $2.5 billion in
payments, in addition to royal- Phone maker offers
ties, will depend on the eventual
commercial success of the drugs. more budget models
Allergan also has agreed to to capture emerging-
invest $50 million in a joint re-
search-and-development pro- market consumers
gram to advance several drugs
to mid-stage human testing. BY JONATHAN CHENG
The move could help assure
investors that the sudden with- SEOUL—Samsung Elec-
drawal of the Pfizer deal in the tronics Co., after being de-
face of new rules from the U.S. throned in 2014 and 2015 as
Treasury Department designed the No. 1 smartphone brand in
to prevent so-called corporate China, India and Indonesia, is
inversions won’t disrupt busi- winning back consumers in
ness as usual at Dublin-based these key markets with a sim-
Allergan. ple policy: slashing prices.
Until this year, Siddharth
Sharma, a 35-year-old resident
The deal follows on of New Delhi, didn’t consider
the heels of the buying a Samsung phone be-
cause devices offered by start-
collapse of its ups such as India’s Micromax
tie-up with Pfizer. Informatics Ltd. offered simi-
lar features for about two-
thirds the price.
The White House and the But in January, Mr. Sharma
Treasury Department coun- found a Galaxy J2 smartphone
tered criticism of the new that fit his budget. The phone,
BEAWIHARTA/REUTERS
rules, arguing that they were launched last September in In-

closing unfair loopholes that dia, has long battery life, fast
allow large companies to shift data speeds and the bright
their tax affairs to countries screen he wanted—all for
with less burdensome levies by roughly $130. Previously, such
merging with smaller firms. a Samsung model would have
Chief Executive Brent Saun- cost twice that, he says. Samsung’s push to sell low-cost phones in Indonesia helped it overtake a local rival, which briefly had the most market share.
ders on Wednesday said Aller- “The quality is much bet-
gan could “act immediately if ter,“ says Mr. Sharma, compar- which remain suppressed
we saw the right opportunity ing it with the low-cost brands Rapid Decline roughly at or below 10%, de-
with the right growth profile he had used before. Samsung's push into emerging markets could worsen the company's spite pledges from executives
and the right strategic logic.” The South Korean tech gi- falling smartphone prices and profit margins. during the past year that the
Malcolm Weir, chief execu- ant’s newfound aggression in company would be able to
tive of Heptares, said Aller- low-end phones is a gamble Average selling price Quarterly mobile profit margin nudge its margins back consis-
gan’s focus was apparent in his that it can win a race to the $500 20% tently into the double-digit
interactions with the company. bottom against local and percentage points.
$343
“We never got any sense of global competitors. Analysts estimate Apple’s
400 16
breaking of stride with Aller- In February, China’s Xiaomi gross margin at about 40%.
gan,” he said. “They always Corp. unveiled a new flagship Last year, Samsung’s global
showed a face of very clear fo- device, with the same power- 300 12 smartphone market share fell
cus on what they were trying ful processor as Samsung’s to 22.5% from 31% in 2013, ac-
to do with their business.” premium smartphones, for as 200 8 cording to data from research
The deal involves three low as $250. Apple Inc. in firm Gartner, while its mobile
classes of drugs in early-stage March launched a cheaper ver- profit margins fell to 8.9%
SAMSUNG
100 4 4Q: 8.9%

development that aim to treat sion of its iPhone at $399, en- from 16.1% during that same
symptoms of Alzheimer’s, such suring the smartphone price stretch.
as cognitive problems and psy- war will continue this year. 0 0 Company executives say
chosis. The most advanced Samsung’s flagship high- Samsung's Galaxy J2 they plan to revive mobile
2010 ’11 ’12 ’13 ’14 ’15 2011 ’12 ’13 ’14 ’15
program has two drugs in end phones cost more than smartphone is catered profit margins by continuing
early human testing. $600, but in the past year it Sources: IDC (selling price); the company (profit margin) THE WALL STREET JOURNAL. for emerging markets. to reduce production costs and
Several other large pharma- has been adding high-end fea- slimming down the number of
ceutical companies, including tures to its low and midtier features such as data-saving saw its operating profit plum- new flagship Galaxy S7 smart- smartphone models. D.J. Koh,
Pfizer, AstraZeneca PLC and phones that cost between mode, which allows consumers met 60% in the fourth quarter phone into the first quarter. who took the reins as Sam-
Teva Pharmaceutical Indus- $100 and $300. to limit data usage—an impor- of last year to 2.23 trillion Even with that boost, profit sung’s mobile chief in Decem-
tries Ltd., have struck licens- The Galaxy J series, which tant feature in emerging mar- won ($1.85 billion) from two would only be modestly higher ber, said in an interview that
ing deals to access Heptares’s has gained traction in India kets where mobile data plans years earlier. than a year earlier, and 22% cost cuts would take time.
technology, though the Aller- and Indonesia, was redesigned often are capped. On Thursday, Samsung said off from the first three months “Material costs you can’t
gan deal is its biggest yet. to look more like Samsung’s Analysts warn that price it expects to earn 6.6 trillion of 2014. decrease in a day,” he said.
Technology such as Hep- top-of-the-line Galaxy S series. cuts will hit Samsung’s mar- won in operating profit across Even if Samsung finds suc- Samsung phones still cost
tares’s helps researchers de- For less than half the price of gins and isn’t a long-term so- the entire company in the first cess in boosting its emerging- about 25% more than their lo-
sign drugs more closely tai- its flagship devices, the phones lution to turn around its ailing three months of this year as it market share, it will put more cal rivals in these countries,
lored to their targets. that cost $100 to $250 offer smartphone business, which moved up the release of its pressure on its profit margins, Please see PRICE page B3
Amazon’s Fashion Secret: Full Price Apple Has History

BY SUZANNE KAPNER “Amazon understands fash-
ion is different from its core
Of Unlocking iPhones
Amazon.com Inc. has business,” said Joëlle Grün- BY JOE PALAZZOLO most horrific cases of child sex
crushed rivals by offering cut- berg, the North American chief AND DEVLIN BARRETT abuse they had ever seen.
rate prices on everything from executive of Lacoste, which History may remember it
books and electronics to dia- started selling select items on The roots of the current for another reason. It is be-
pers. But to attract fashion Amazon last year. “They dis- standoff between Apple Inc. lieved to be the first case of a
brands, it has employed a new count when products aren’t and the Federal Bureau of In- federal judge ordering Apple
strategy: promising full price. selling, but they don’t mark vestigation reach back to to assist the government in
With that pledge, the Inter- down at crazy rates.” 2008, with the unexpected dis- unlocking an iPhone—and the
CRAIG BARRITT/GETTY IMAGES
net retailer is making headway Fashion has been one of the covery of a suspect’s iPhone technology giant not only com-
attracting a crowd that for last e-commerce holdouts be- apparently forgotten inside a plied; it helped prosecutors
years had rebuffed its ap- cause the fit and feel of cloth- bag of diapers. draft the court order requiring
proaches. Dozens of brands ing is important to shoppers. Lawyers and investigators it to do so.
now sell directly to Amazon, Only 15% of apparel was pur- involved in the 2008 prosecu- The recent dispute over the
including department store chased online last year, com- tion of Amanda and Christo- locked iPhone 5C of Syed Riz-
stalwarts such as Nicole Miller, pared with 65% of computers, pher Jansen, a young married wan Farook, one of the San
Calvin Klein, Kate Spade, La- according to Forrester Re- couple from Watertown, N.Y., Bernardino shooters, ended
Celebrity Lauren Conrad, second from left, on ‘Style Code Live.’ coste and Levi Strauss. Please see FASHION page B2 remember it as one of the Please see UNLOCK page B3
B2 | Friday - Sunday, April 8 - 10, 2016 THE WALL STREET JOURNAL.
INDEX TO BUSINESSES BUSINESS NEWS

These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
A
Airbus Group...............B2
Al Badia Cement ........ A1
Express Scripts
Holding ..................... B8
F-G
Mossack Fonseca........A3
Numericable-SFR........B5
Oracle..........................A5
M&S Continues to Feel Pressure
Alcoa............................B5 P-Q BY SAABIRA CHAUDHURI leggings that resemble jeans—
Foundry Group ............ B4
Alibaba Group.............B3 Petrobras.....................B7 for instance, has dropped to
Greenspring
Allergan.......................B1 Pfizer...........................B1 LONDON—British retailer £17.50 from £19.50, or to $24.71
Associates ................ B4
Qualcomm...................B3 Marks & Spencer Group PLC from $27.54, which more than
Amazon.com ............... B1 H
S reported a 1.9% rise in sales doubled units sold from a year
Apple......................B1,B3
Heptares for its fiscal fourth quarter as earlier. White T-shirts for men
AstraZeneca................B1 Santander Group ........ B8
Therapeutics.............B1
Seven & I Holdings .... A1
food sales helped outweigh a fell to £6 from £7.50, leading to
B Honeywell continuing slump in its cloth- a unit sales increase of 46%.
CHRIS RATCLIFFE/BLOOMBERG NEWS

Siemens.......................B2
Banco Santander.........B8 International.............A5
Snapchat ..................... B4 ing and home division. The retailer said it now ex-
Bank of America.........B5 HSBC Bank..................B8 Standard Chartered....B8 The sales update is a first pects full-year clothing and
Bank of Queensland...B8 Hypo Landesbank SunPower....................B3 under Chief Executive Steve home gross margin to be be-
Barclays.......................B8 Voralberg .................. A3
T Rowe, who took the reins on tween 2.4 and 2.5 percentage
BNP Paribas................B8 I Saturday. He faces the task of points, narrowing its previous
Tencent Holdings........B3
turning around M&S’s clothing guidance for the top end of 2
BTG Pactual ................ B7 IG Metall.....................B1 Teva Pharmaceutical .. B1
and home sales, which have to 2.5 percentage points.
C Intel.............................B3 Third Point..................A2
struggled for a string of quar- Peel Hunt analyst Jonathan
International Business 3M...............................A5
Cargill Indonesia.........B7 ters, while continuing to grow Pritchard said he is looking to
Machines...................B3 U its food arm. Quarterly sales at the company’s clothing and home unit fell 1.9% Mr. Rowe “to hopefully usher
Century Aluminum ..... B4
Ceylon Tropics.............B7 J-L Uber Technologies.B3,B4 London-based M&S warned in a new strategy” during the
U.S. Venture that it continues to expect cur- Mr. Rowe, an M&S veteran arm, has in the months before company’s full-year earnings
Chipotle Mexican GrillA5 J.P. Morgan Chase.B5,B8
Partners....................B4
Citigroup......................B5 Kleiner Perkins Caufield rency pressures and challeng- who started out doing small becoming CEO moved to im- report next month, describing
& Byers................A6,B4
V ing trading conditions to heav- jobs for the company in 1983 prove variety, pricing and M&S results between 2010 and
Credit Suisse Group ... B8
Cypress L Brands......................B2 Valeant Pharmaceuticals ily impact its full-year at the age of 15. availability in the division 2015 as “profoundly disap-
International.............B8 profitability. The results underscore the while making senior manage- pointing.”
Semiconductor..........B3 Levi Strauss................B1
Viacom ........................ A5 On Thursday, the retailer pressure on Mr. Rowe to set ment changes. On Thursday, Analysts have suggested Mr.
D-E M-O Volkswagen.................B1 reported a 4% increase in food out a clear strategy at M&S’s the new CEO said the moves Rowe should look to sell un-
Deutsche Bank............B8 Marks & Spencer W-Z sales for the 13 weeks ended full-year earnings update next hadn’t gone far enough, adding derperforming stores, improve
Didi Kuaidi Joint.........B3 Group..........................B2 Wynn Resorts.............B2 March 26, although sales were month on how he plans to re- that “although the sales de- staff engagement, streamline
Enovix..........................B3 Menlo Ventures..........B4 ZTE..............................B3 flat on a comparable basis as vive nonfood sales. cline in clothing and home was its clothing and home brands
M&S said it chose to improve “The outcome of his plans lower than last quarter, our and improve product quality in
INDEX TO PEOPLE its margins in this business.

Sales fell 1.9% in the clothing
and home business while com-
will ultimately determine the
success or otherwise of M&S’
share price performance for
performance remains unsatis-
factory and there is still more
we need to do.”
the division.
“Short-term pain is re-
quired if M&S is to return to
A-C Isaka, Ryuichi ............. A2 Pearson, Michael........B8 parable sales declined 2.7%. the immediate future,” said He said M&S has ratcheted past earnings levels in a sus-
Ackman, William ........ B8 Ito, Masatoshi............A1 Perera, Maduka...........B7 “Turning around our cloth- Shore Capital analyst Clive down promotional activity, in- tainable manner,” Mr. Prit-
Benkoski, Jacques ...... B4 J-L Ramasubramanian, ing and home business by im- Black. stead cutting prices in a more chard said.
Murali........................B3 proving our customer offer is Mr. Rowe, who continues to sustainable fashion. The price —Olga Cotaga
Blessing, Karlheinz.....B1 Jackson, Laban............B8
Raymond, Lee.............B8 our number one priority,” said head M&S’s clothing and home of women’s black jeggings— contributed to this article.
Butters, John..............B5 Jordan, Thomas..........B5
Rodgers, T.J ................ B3
Campbell, Bill..............B4 Kiyota, Akira...............A2
FASHION
Rosenstreich, Peter....B5
Comey, James.............B3 Kramlich, Dick.............B4 line retailer. There are still rate,” Jeff Yurcisin, an Amazon
Cote, David ................. A5 Lahiri, Ashok...............B3
S holdouts, however, including Clothes Horse vice president, told a gathering
Safra Catz...................A5 Nike Inc., Tory Burch, Rag & Amazon is expected to unseat of retail executives last year.
D-F Loeb, Daniel................A1
Bone and many of the Euro- “We are a price follower, not a
Saunders, Brent..........B1 Macy’s as the largest U.S.
Dauman, Philippe ....... A5 Loynes, Jonathan....... A4 Continued from the prior page pean luxury-goods players, price leader.”
Schlein, Ted.................B4 apparel seller by next year.
Diess, Herbert.............B1 M-N search Inc. But just like so which are turned off by Ama- Data compiled by Boomer-
Shin, Hyun Song.........B8 U.S. apparel and accessories sales
many other traditional shop- zon’s down-scale image and ang Commerce support that
Dimon, James.............B5 Müller, Matthias.........B1 Suzuki, Toshifumi.......A1 ping habits, clothes shopping concerned about third-party $30 billion stance. Amazon, including sales
Doerr, John..................B4 Mossack, Jurgen.........A3 is yielding to the ease of the sellers listing merchandise be- 2017 by third parties, had higher av-
T-W
Esteves, André ........... B7 Naylor, Bartlett .......... B5 Internet. low suggested pricing. Amazon erage prices than Macy’s and
Thulin, Inge.................A5 25 $27.8B
Fry, James...................B7 Newhall, Ashton.........B4 The change means more “Product by the pound” is Kohl’s on 69 items of women’s
Tou, Jarvis...................B3
G-I Nicholson, David.........B1 choice and convenience for how one fashion executive de- Macy’s and men’s clothing and shoes
Wardaja, Satria...........B7 shoppers, but it is another blow scribed Amazon, adding, “Why that Boomerang tracked from
O-R 20 $24.7
Gerlach, Stefan...........B7 Weidmann, Jens.........A4 to traditional department stores would you undercut your own Jan. 28 through Feb. 17.
Wal-Mart
Guber, Peter................A6 Osterloh, Bernd .......... B1 Weir, Malcolm.............B1 and the malls they anchor. distribution channels by sell- In hard goods, by contrast—
15 $21.3
While shoppers still like to ing to them?” items such as books, TVs, ap-
visit brick-and-mortar stores An Amazon spokeswoman TJX pliances and other non-fashion
Boeing Urges Action to try on clothes, Amazon’s

Prime membership, which in-
cludes free, two-day shipping,
declined to comment for this
article.
Amazon has long struggled
10
$21.0 products—Amazon’s prices
typically were the lowest for
75% to 90% of the time last
On Bank Nominee
helps make buying apparel on- to crack into the fashion world. 5 year, according to 360pi, an-
line a less risky proposition. A decade ago, Amazon CEO Jeff other price-tracking firm.
“It’s so much easier than go- Bezos visited Seventh Avenue Estimates Brands that have joined
ing to a store,” said Karen showrooms to try to generate 0 forces with Amazon say selling
BY JON OSTROWER port-credit financing as an Gestwicki, a 44-year-old real- interest, but apparel executives 2011 ’13 ’15 ’17 to the retailer often is more
option, a source of financing estate broker in Charlotte, N.C., were reluctant to entrust their Source: Cowen and Company profitable and a better experi-
Boeing Co. Chief Executive on which its commercial space who recently bought a pair of brands to a retailer known for THE WALL STREET JOURNAL. ence than dealing with depart-
Dennis Muilenburg said Thurs- business is heavily reliant. Jack Rodgers sandals on Ama- cut-throat prices and a utilitar- ment stores, which increas-
day that one of its customers “This deserves a vote,” Mr. zon. When Ms. Gestwicki re- ian approach to displaying website. ingly rely on deep discounts.
can’t take delivery of new Muilenburg said. cently was looking for dresses products, according to people For those that don’t sell on Amazon’s U.S. apparel busi-
planes because of the continu- Boeing and jet-engine sup- her first stop was the Internet familiar with the meetings. Amazon, the company has an- ness, including sales by third
ing closure of the U.S. Export- plier General Electric Co., are retailer “because Amazon has Mr. Bezos set about building other message: watch out. The parties, is forecast to rise to
Import Bank to big-ticket fi- the among the biggest recipi- the biggest selection.” a fashion beachhead without retailer is creating private-label $52 billion in 2020, from $16
nancing. ents of the bank’s financial For brands, Amazon offers them. Amazon acquired Shop- products to fill gaps in its lineup. billion last year, according to
Mr. Muilenburg called for support, which enables air- growth at a time when depart- bop.com, an online seller of de- It recently introduced seven la- Cowen & Co. The bank esti-
swift action by the Senate lines to get access to commer- ment-store sales are sluggish. signer apparel and accessories, bels, including Franklin & Free- mates that Amazon will sur-
Banking Committee to reopen cial financing at comparatively Amazon’s North American over- in 2006. Later it wooed Cathy man men’s shoes and Society pass Macy’s as the biggest ap-
the bank to all business by ap- competitive rates. all sales last year rose nearly Beaudoin away from Gap Inc. to New York women’s dresses. parel retailer in the U.S. as
proving the nomination of a The bank hasn’t been able 25% to $63.7 billion, while sales run its fashion business. In Last month, Amazon soon as next year.
new board member. to achieve the quorum of three at Macy’s Inc. fell 3.7% and 2009, it bought shoe retailer launched a live fashion show To get a sense of the dam-
Customers of Boeing have board members required to Kohl’s Corp. sales inched up 1%. Zappos.com and launched flash- that it streams each evening age that Amazon can wreak,
been unable to secure finan- approve financing deals over The two chains are closing sale site MyHabit.com in 2011. from its website. “Style Code consider that it captured
cial support from the bank $10 million. stores and cutting staff. It also has improved its pre- Live,” which combines a QVC nearly 43% of overall online
since last July, even though The Obama administration Brands known to be picky sentation. Amazon built a pho- shop-at-home broadcast with sales in November and Decem-
Congress extended Exim’s has submitted a nominee for about their distribution are tography studio in Brooklyn in MTV-like celebrity guests, ber, according to Slice Intelli-
mandate in December. the third seat, Mr. Muilenburg tiptoeing onto Amazon, includ- 2013 to shoot clothing, shoes highlights items that are sold gence, which gathered data on
Mr. Muilenburg said at the said, but the approval is ing Ralph Lauren Corp., which and accessories and create on the site. “We have a bad the email receipts of 3.5 mil-
bank’s annual conference that stalled in the Senate Banking sells shoes directly to the on- magazine-like spreads on its rap, and that’s not fully accu- lion consumers.
Boeing may face a delivery Committee, chaired by Sen.
slowdown for customers that Richard Shelby (R., Ala.).
rely on export financing.
He said Ethiopian Airlines
had told Boeing that it cannot
take delivery of new jets with-
The bank has been a hot-
button political topic for both
sides of the political spectrum,
with critics calling it a vehicle
VW excerpts of which were pub-
lished on IG Metall’s website,
Mr. Osterloh cites a “grave
loss of trust;” he calls Volks-
Volkswagen’s board. The state
of Lower Saxony, where most
of the German jobs are lo-
cated, holds two more seats,
plan calls for phasing out un-
profitable models, cutting costs
by more than €5 billion ($5.70
billion) and boosting produc-
out export credit guarantees for corporate welfare. Continued from the prior page wagen brand management guaranteeing labor a veto over tivity by as much as 10%.
from the bank. Defenders of the bank, in- diesel-powered cars contained “unreliable” negotiating part- any decision to slash jobs. It Mr. Diess also faces trouble
Mr. Muilenburg also said it cluding President Barack software meant to deceive ners; and accuses Mr. Diess of also has a significant say over with labor in the U.S., where
was recently shut out of a sat- Obama, say the bank is critical emissions tests. lacking a coherent plan to re- the future of Mr. Diess at the Volkswagen is challenging a
ellite deal with Singapore be- to supporting U.S. manufactur- Until now, the labor boss vive the company. company. National Labor Relations
cause of the absence of ex- ers. and Volkswagen brand chief The split risks becoming a Mr. Diess riled labor leaders Board decision to allow main-
have kept any conflict in the serious internal distraction as late last year with a 12-point tenance workers at its Chatta-
ADVERTISEMENT background as the company Volkswagen struggles to cope plan to restructure the Volks- nooga plant to organize as a
wrestled with the fallout from with the wider scandal around wagen brand. It is the group’s distinct group. A decision on
The Mart the ballooning emissions scan-
dal. But in an emotional letter,
the world. Labor representa-
tives hold half the seats on
largest business by sales, but
barely ekes out a profit. The
Volkswagen’s appeal is ex-
pected later this month.
BUSINESS OPPORTUNITY
gerie. Company wide, same-store ator hosted an investor day and AIRBUS
Dear Perspective Business Partner, Business sales rose 3% at L Brands, also the
parent of Bath & Body Works and
gave an update on its next resort
in Macau. Shares, up 29% over the
Siemens to Join on
I am offering a technological breakthrough solution to a
looming energy, water shortage, and climate change crises. An Watch La Senza. L Brands said total com-
pany sales increased 4.7% to $1.03
past three months, rose nearly 12%
to $100.11 in morning trading in
Aircraft Technology
European plane maker Airbus
unlimited kinetic energy. Thus, electricity in turn will become an billion. New York. The stock, which hasn’t Group SE and German industrial
unlimited commodity. —Joshua Jamerson traded above $100 since August, conglomerate Siemens AG said
The second law of thermodynamics and E=mc^2 are flawed in reached as high as $99.62. Thursday they are joining forces to
regards to a concept of over unity. Currently this technology is not WYNN RESORTS LTD. The company gave a financial work on electric aircraft technology.
registered and remains to be a trade secret. A closest thing to a L BRANDS INC. outlook for Wynn Palace, a $4 bil- The companies said they would
Macau Resort Update lion hotel slated to open in June in pool about 200 engineers to dem-
perpetual motor. Powerful enough to compete with an internal
combustion engine. It can be manufactured from a wide range of
Company to Revamp Lifts Firm’s Shares Cotai, a strip of reclaimed swamp- onstrate by 2020 the possibility of
materials and be any size. And it is suitable for extreme harsh Victoria’s Secret Wynn Resorts Ltd. shares on land in Macau that has become using electric or hybrid-electric
environments that vary in temperature, atmospheric pressure, and L Brands Inc. said it would re- Thursday hit their highest point prime ground for developments. technologies on aircraft.
electromagnetic and radiation levels. structure its Victoria’s Secret busi- since August after the casino oper- —Joshua Jamerson “We believe that by 2030 pas-
With that being said, I am looking for a business partner who ness, as the retailer reported bet- senger aircraft below 100 seats
can also be a my mentor and a sponsor. A seasoned person or a ter-than-expected growth could be propelled by hybrid pro-
corporation with ample resources to bring this technology to the Thursday across its established pulsion systems, and we are deter-
world market. Thank you for reading this message. stores in March. The restructuring mined to explore this possibility to-
comes two months after Sharen gether with world-class partners
Sincerely, Dmitry Stepanov PO Box 178026 San Diego CA 92177 Turney resigned as Victoria’s Se- like Siemens,” Airbus Chief Execu-
619-693-5075 [email protected] cret chief executive. tive Tom Enders said.
L Brands plans to reorganize Airbus, which generally builds
BUSINESS OPPORTUNITY TRAVEL Victoria’s Secret into three units: aircraft seating more than 100
Victoria’s Secret Lingerie, PINK and passengers, has invested in recent
Victoria’s Secret Beauty. Leaders at years to advance the use of elec-
à As with all investments, Save Up To 60% each unit will report directly to tric engines on planes to reduce
BOBBY YIP/REUTERS
appropriate advice should First & Business Chairman and Chief Executive Les- fuel consumption.
INTERNATIONAL lie Wexner. Siemens CEO Joe Kaeser said
be obtained prior to Major Airlines, Corporate Travel Victoria’s Secret same-store the effort would be part of its In-
entering into any Never Fly Coach Again!
www.cooktravel.net
sales grew 2% in March as a de- novation AG unit, which aims to
binding contract. à (800) 435-8776 cline in the beauty segment was explore new technology trends.
offset by growth in PINK and lin- The Wynn Palace, seen in 2015, is set to open in June. —Robert Wall
THE WALL STREET JOURNAL. Friday - Sunday, April 8 - 10, 2016 | B3
TECHNOLOGY @wsjd | wsjd.com
Didi Valued Over $25 Billion FBI Tool Can’t Hack

HONG KONG—Investors in
China’s homegrown competi-
tor to Uber Technologies Inc.
by the end of this month, ac-
cording to the people.
While many global startups,
Didi Kuaidi, startups that aren’t
dominating their segments are
struggling to raise new funds,
Cooling Down
Private funding for China's
Newer iPhones
have revved up the ride-shar- including some in Silicon Val- venture capitalists say. technology sector BY DEVLIN BARRETT the 5S and the 6.
ing company’s valuation to ley, have had difficulty raising China’s biggest Internet “This doesn’t work on the
more than $25 billion. money amid a slowdown in companies have taken sides in $4 billion The secret technique used 6’s, doesn’t work on 5S’s,’’ Mr.
the global economy, Didi the battle for the country’s to unlock the iPhone of a ter- Comey said Wednesday in re-
By Juro Osawa, Kuaidi has been an exception. ride-hailing market. While Didi 3
rorist from San Bernardino, sponse to a question from an
Kane Wu Its valuation has soared Kuaidi’s investors include Ten- Calif., doesn’t work on newer audience member at Kenyon
and Rick Carew from just $6 billion in February cent and Alibaba, backers of phone models, the director of College in Ohio, where he was
2015 when it was formed from UberChina, Uber’s Chinese af- 2 the Federal Bureau of Inves- speaking to students about
Beijing-based Didi Kuaidi the combination of two com- filiate, include Baidu Inc., tigation said. privacy.
Joint Co. is close to complet- peting taxi-hailing companies. China’s biggest search provider. FBI Director James Comey, The revelation underscores
ing its latest funding round to The latest fundraising comes In China, Didi Kuaidi and 1 in a speech Wednesday night, the fact that tough legal issues
raise more than $1.5 billion at as growth in private funding for UberChina are locked in a also said the FBI had bought remain in the broader dispute
a valuation of more than $25 China’s tech sector is slowing fierce battle to attract riders the phone-opening tool from between the FBI and Apple over
billion, according to people fa- because investors are becoming and investors. Both companies 0 an unidentified private third criminal investigators’ access to
miliar with the situation. more cautious due to volatility are providing huge subsidies 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q party. He said he is confident encrypted information.
Didi Kuaidi’s biggest exist- in China’s stock market and to drivers and riders to sign 2014 ’15 ’16* both the FBI and the third Asked for comment Thurs-
ing backers, social-network slowing economic growth. up for their services. *Preliminary party could keep it secret if day, an Apple spokesman re-
company Tencent Holdings In the past six months, such Didi Kuaidi dominates the Source: AVCJ Research government officials decide ferred to a statement issued
Ltd. and online shopping giant funding amounted to about country’s taxi-hailing market, THE WALL STREET JOURNAL. they want it to remain secret. by the company when the FBI
Alibaba Group Holding Ltd., $4.5 billion, less than the $6.7 and has a larger share than The FBI said last week it had first said it had been able to
are participating in the latest billion raised in the previous six UberChina in the private-car- rectly with Uber, while adding found a way to open the phone open the phone.
round, the people said. months, according to data from hailing segment, though the other services such as buses in question, ending for the mo- At the time, the company
The Chinese startup re- Hong Kong-based AVCJ Re- two companies disagree on and chauffeurs. ment a contentious legal fight said it would “continue to help
ceived strong demand from search. While more fresh capi- the exact figures. Didi Kuaidi UberChina last year raised with Apple Inc. about whether law enforcement with their in-
new and existing investors and tal is flowing into leading play- has expanded its private-car $1.2 billion at a valuation of the government could force the vestigations, as we have done
expects to complete the round ers in each category such as services to compete more di- more than $8 billion. technology firm to write soft- all along, and we will continue
ware that would help investiga- to increase the security of our
tors open the phone and exam- products as the threats and at-
StartupTake New Tack on Batteries

ine the suspect’s data. tacks on our data become
Apple had resisted that ef- more frequent and more so-
fort, saying that doing what phisticated.”
the FBI wanted would compro- Mr. Comey said the govern-
BY DON CLARK mercial manufacturing in the search and development, also Another differentiator is in mise the security of millions ment is still debating whether
second half of 2017. worked at IBM. Enovix’s choice of material for of other iPhones. to tell Apple what the security
FREMONT, Calif.—Enovix T.J. Rodgers, founder and In their latest venture, the a key battery component The iPhone in question, a flaw is that let them into Mr.
Corp. is taking an unusual ap- chief executive of Cypress, ac- three co-founders tried to recalled an anode, which usually 5C model, was used by Syed Farook’s phone. “That’s an in-
proach to address user com- knowledges that many battery think the lithium-ion batteries is made of graphite. Silicon Rizwan Farook before he and teresting conversation, be-
plaints that batteries of mo- startups have made lofty found in most mobile devices has long been studied as an al- his wife opened fire at a holi- cause if we tell Apple, they’re
bile devices run out of power claims with few tangible re- and electric cars. Such batter- ternative, but it tends to be day party of his co-workers, going to fix it and then we’re
too quickly. sults. “There is much more ies normally are manufactured used sparingly because it can killing 14 and injuring 22. back where we started,’’ Mr.
Where others have focused hype in the battery world than by rolling or folding layers of swell and lead to failures. Mr. Since an undisclosed third Comey said.
on boosting energy storage ca- there is in the silicon world,” flexible materials to produce Rust said Enovix has been able party showed the FBI last The FBI had sought Apple’s
pacity by changing battery Mr. Rodgers said. But he cylinders or other shapes. to create a 100% silicon anode, month how to open a 5C, the help working around a secu-
chemistry, the Silicon Valley added of Enovix: “I think these One Enovix goal is to cut using a porous structure akin FBI has been testing to see if rity feature that erases the
startup is betting on a shift in guys will be important.” down on wasted space. The to Swiss cheese that can toler- the method could be used on phone’s data after 10 unsuc-
manufacturing technology that Mr. Rodgers has helped company estimates that 34% ate swelling, he said. “We have newer models of iPhones, like cessful password attempts.
borrows techniques from mak- make waves beyond chips be- of the weight and about 43% an anode that is three times as
ers of computer chips and so- fore, including Cypress’s suc- of volume of a typical lithium- good at storing energy than
UNLOCK
lar cells. Enovix expects to cessful investment in the solar ion battery comes from mate- others,” Mr. Rust said. the case in December 2008.
produce batteries for wearable panel maker SunPower Corp. rials that don’t help store en- Other companies have Before seeking a federal search
devices and other mobile ap- Enovix plans to set up a ergy, such as polymer layers talked up rival approaches. warrant for the iPhone, inves-
plications with at least double factory near SunPower’s in the that separates the materials Enevate Corp., a startup in Ir- tigators consulted with Apple,
the capacity of existing prod- Philippines, benefiting from involved in generating electric vine, Calif., recently disclosed Continued from page B1 according to a Justice Depart-
ucts. that company’s manufacturing current. plans to deliver batteries for last week with the announce- ment brief filed last year in a
The company, originally expertise, Mr. Rodgers said. Enovix instead fabricates mobile devices and drones ment that an undisclosed third separate case in Brooklyn.
called MicroAzure, hasn’t said Enovix Chief Executive Har- flat, rectangular battery struc- with 70% silicon anodes. party had shown the govern- The company wanted a
much about its plans. But it is rold Rust and co-founder tures from silicon wafers using Jarvis Tou, an Enevate execu- ment a technique for accessing court order authorizing it to
likely to attract attention be- Ashok Lahiri, the company’s lithography, etching and other tive vice president, said its the phone’s data. crack a customer’s passcode.
cause of its backers, which in- chief technology officer, have techniques common in making batteries charge unusually Since the Watertown phone But it was otherwise coopera-
clude chip makers Cypress been working on silicon com- chips. quickly. They are produced us- was opened, Apple has helped tive: An Apple lawyer supplied
Semiconductor Corp., Intel ponents together since they The approach, along with a ing rolls of materials, which he federal investigators access the Justice Department with
Corp. and Qualcomm Inc. met in 1984 at International thin metal film and a ceramic said are less expensive than more than 70 phones, accord- language to use in the agency’s
They and other investors Business Machines Corp.’s rather than polymer separator, silicon wafers and more flexi- ing to a government court fil- legal request for the order, ac-
have pumped more than $100 former disk-drive operations. reduces the proportion of in- ble in size. “We went this ing. But in recent months, the cording to the brief.
million into the company, Murali Ramasubramanian, the active materials to about 25%, route so we can create larger company has resisted at least Lisa Fletcher, a federal
which expects to begin com- startup’s senior director of re- the company says. and larger batteries,” Mr. Tou a dozen requests by the Jus- prosecutor in Syracuse, said in
said. tice Department for orders her Dec. 15, 2008, request that
Mr. Rust said Enovix ex- compelling the company to as- no specific statute authorized
pects to also achieve very low sist in bypassing phone secu- a company like Apple to help
production costs. It can stack rity, according to a February law enforcement. But, she con-
layers of batteries to create court filing by an Apple law- tinued, the court could order
many sizes—including, possi- yer. Apple to help the government
bly, batteries for cars one day, Court documents and inter- under the All Writs Act, an old
he said. views with those involved in federal law that judges had
The key test for Enovix will the Watertown case shed light used in the past to conscript
be finding big customers, said on a bygone era of cooperation telephone companies into
Christopher Robinson, an ana- between Apple and the gov- helping federal agents install
lyst at Lux Research who was ernment, before the two sides and operate call-tracking de-
briefed on the company’s parted ways on issues of data vices.
plans. security and customer privacy.
Mr. Rust said the company The 2013 leak by Edward
doesn’t expect to begin manu- Snowden on government sur-
In recent months,
facturing until it has purchase veillance programs prompted Apple has resisted
commitments, but it isn’t yet the tech industry both to shore
ready to name potential cus- up their products’ security fea-
at least a dozen
tomers. tures and to view the govern- U.S. requests.
For the moment, Enovix ment’s requests for informa-
keeps processing wafers to re- tion more skeptically.
fine its production techniques In a decision that reached U.S. Magistrate Judge
at a pilot plant in Fremont, the very top of the company, George Lowe signed the order
Calif., a rarity in a portion of say people familiar with the within hours of the Justice De-
ENOVIX
Silicon Valley that has largely situation, Apple in 2014 tight- partment’s request. A New
shifted from manufacturing to ened its phone encryption, York State Police investigator
Silicon wafers are processed to make high-capacity batteries at Enovix’s pilot unit in Fremont, Calif. other high-tech chores. making it hard for even the then took the iPhone to Ap-
company itself to unlock an ple’s headquarters in Califor-
encrypted phone. Today, Apple nia, according to court docu-
ZTE Takes Hit Amid Concerns Over Probe

and other tech firms argue ments and a person familiar
that compelling them to write with the case.
new software to open devices Apple engineers bypassed
would create new security the phone’s passcode in the in-
BY JURO OSAWA technological goods to Iran to procure U.S. components zhen-based ZTE, which sells flaws for millions of their cus- vestigator’s presence, accord-
AND JOANNE CHIU and other nations. and software. smartphones as well as net- tomers. ing to court documents filed in
While the sanctions have Two weeks after the sanc- working equipment for carri- Apple first began selling Brooklyn.
ZTE Corp.’s shares plunged since been suspended, ZTE tions took effect, the U.S. gov- ers, overhauled its top man- iPhones in 2007, about a year People familiar with that
on Thursday upon resuming said Wednesday that U.S. in- ernment agreed to suspend agement, replacing three of its before New York State Police and other phone-opening cases
trading after a monthlong sus- vestigations “may result in them until June 30 as long as most senior executives includ- executed a search warrant at said the Watertown case is the
pension, as the Chinese tele- criminal and civil liabilities ZTE cooperates with Washing- ing its chief executive. the Jansens’ home. first to their knowledge in
communications giant con- under U.S. laws,” and it cannot ton. On Wednesday, ZTE also re- Authorities suspected Mr. which All Writs Act order was
tends with allegations that it fully assess the potential legal ZTE shares were suspended ported its 2015 financial re- Jansen was in possession of used to crack an iPhone,
violated U.S. trade laws. liabilities or their impact on from trading in Hong Kong as sults, which had been delayed child pornography, according though definitive records on
Last month, the U.S. Com- the company’s finances. of March 7 because of the U.S. last month due to the U.S. to documents filed in the case. that score don’t exist.
merce Department imposed The sanctions, which took sanctions. On Thursday, the trade sanctions. Its revenue But during a search of the At the time, said people fa-
trade sanctions on ZTE for al- effect March 8, created a stock fell 10% to 12.70 Hong and profit were lower than home for evidence of child miliar with the matter, it
legedly violating rules that re- threat to ZTE’s business as it Kong dollars (US$1.64). forecasts the company issued pornography, Ms. Jansen re- wasn't considered a big step
strict exports of American hindered the company’s ability Earlier this week, Shen- in January. vealed to an investigator that worth noting, because govern-
she and her husband had ment authorities had long used
drugged and raped Mr. Jan- the All Writs Act to get compa-
PRICE
22% in the previous quarter— of all Samsung smartphones worst is behind, and the num- sen’s 5-year-old daughter and nies to help them with various
and beat local rival Micromax. fell to $145 for the first nine bers in China would reflect a 8-year-old stepson, who stayed devices and technical issues.
The chief executive of Mi- months of 2015, the most re- rebound in coming months. with the couple over the sum- Once opened, the iPhone in
cromax resigned in February cent period for which data is The risk for Samsung is that mer of 2008. Ms. Jansen also the Watertown case revealed
Continued from page B1 as the company’s market share available, down by about one- its price cuts could erode its admitted sexually abusing her damning evidence of the cou-
but that is down from about slid. In Indonesia, where Sam- fourth in cost from the same premium brand, said Patrick 1-year-old daughter with Mr. ple abusing the children, in-
40% before its shift, according sung briefly was surpassed in period a year earlier. Moorhead, principal analyst at Jansen. cluding text conversations be-
to Tarun Pathak, a Gurgaon, overall mobile phone sales by In China, where Samsung Moor Insights & Strategy. The Jansens were arrested tween the Jansens about
India-based analyst for Coun- low-cost rival Evercoss Indo- plunged to No. 6 in smart- “If they continue to dis- on Sept. 18, 2008. When work- specific acts they wanted to
terpoint Technology Market nesia in the second quarter phone market share last year count the Samsung brand, ers from child protective ser- commit, as well as messages
Research. last year, the South Korean after reigning as the undis- they will need to keep selling vices came to take the infant, they exchanged during the
Samsung declined to com- company’s new phone releases puted leader for years, it at a discount to Apple and the mother gave them a diaper abuse, according to sentencing
ment about its pricing strategy. helped it regain the No. 1 posi- launched the Galaxy A series, that hurts them greatly in the bag. Inside that bag, the foster documents. Both husband and
In India, the new strategy tion in the third quarter. a midrange smartphone that future,” he said. parent assigned to care for the wife pleaded guilty to federal
has helped Samsung regain its Analyst Mr. Pathak esti- boasts better front-facing —Eric Bellman in New Delhi child discovered an iPhone, ac- charges in October 2009 and
market share—rising to 26% in mates that in Indonesia, the cameras. Mr. Koh, the Sam- and Min-Jeong Lee in Seoul cording to court documents. were sentenced to life in
the last quarter of 2015 from average wholesale selling price sung mobile chief, said the contributed to this article. Federal authorities joined prison without parole.
BUSINESS NEWS
U.S. to Probe Succession Tests Venture Firms

Aluminum Trade BY DOUGLAS MACMILLAN
AND DEBORAH GAGE
Amid China Surge The decision by John Doerr,

one of Silicon Valley’s most
prominent investors, to step
aside as frontman of Kleiner
BY JOHN W. MILLER Chinese officials have de- Perkins Caufield & Byers re-
AND SCOTT PATTERSON nied overproduction, saying flects the battle venture-capi-
the problem is weaken- tal firms face to stay relevant.
The U.S. International ing demand because of The 64-year-old Mr. Doerr
Trade Commission said on a tepid global economy. said last week that he would
Wednesday that it will inves- Chinese aluminum exports become the firm’s chairman,
tigate the global aluminum have soared to $23.8 billion giving up his managerial role
trade and its impact on the in 2015 from $6.2 billion a as partner after nearly four
U.S. aluminum industry, an decade ago, helping prices to decades. The move strips him
inquiry that could help pave fall 40% in the past five of his vote on Kleiner’s invest-
the way for new import tar- years, to $1,500 a metric ton ment committees for future
DAVID PAUL MORRIS/BLOOMBERG NEWS

iffs. from $2,500 a metric ton. In funds, people familiar the mat-
The ITC said it would look 2015, China produced 32 mil- ter said, meaning he will no
into foreign government pol- lion tons of the metal, ac- longer be able to bet the firm’s
icies that drive overproduc- counting for more than 50% money on startups, as he did
tion, a swipe at China, of global aluminum produc- on Google Inc. and Ama-
which has drastically in- tion, double the level in zon.com Inc.
creased output of the metal 2005. Mr. Doerr won’t be able to
this century, contributing to Meanwhile, the U.S. is im- approve investments in future
falling prices and the closing porting more aluminum than funds, or have legal obliga-
of U.S. smelters. ever. U.S. imports last year tions to those funds’ investors,
The ITC said it would hold accounted for an estimated but he still will recommend Kleiner Perkins’s John Doerr, shown in 2015, is said to have helped craft the firm’s transition plan.
a hearing Sept. 29 and de- 40% of U.S. consumption, and discuss deals, and can sit
liver its report to the House compared with 14% in 2010, on boards. investors, said people familiar chairman of New Enterprise bets several years ago in start-
Ways and Means Committee according to the U.S. Geologi- The shift followed years of with the matter. Associates, one of Silicon Val- ups that didn’t return capital,
by June 24, 2017. The investi- cal Survey. internal debate about how to A Kleiner spokeswoman de- ley’s biggest venture firms. “I counting on the next genera-
gation was requested by a By the end of this year, prepare Kleiner for the future, clined to comment on behalf think it’s a congenital prob- tion to take their place, said a
letter sent to the ITC in Feb- only four aluminum smelters which intensified last year af- of the firm and Mr. Doerr. lem,” Mr. Kramlich said. “A lot person familiar with the firm.
ruary by the committee. are expected to remain oper- ter the trial of a gender-bias Messrs. Schlein and Campbell of firms are going to be ad- Instead, several young part-
House Ways and Means Com- ational in the U.S., down lawsuit against the firm by a couldn’t be reached. dressing this issue going for- ners defected to other firms,
mittee. from 23 in 2000, leaving an- former partner. The firm pre- Succession is tough to plan ward.” the person said.
Century Aluminum Co., nual U.S. aluminum output at vailed, but court testimony because “investing is a mental Mr. Kramlich, who co- Jacques Benkoski, a partner
one of the last smelter opera- 565,000 metric tons, down cast it in an unflattering light. sport, so you can play for a founded NEA in 1978, a year at U.S. Venture Partners, de-
tors in the U.S., and the from 2.1 million tons five While Mr. Doerr is re- long time,” said Venky Gane- after personally investing in clined to comment.
United Steelworkers union, years ago and 3.7 million tons spected by many at the firm san, managing director at Apple Computer, said he cre- Last year, USVP raised a
which represents thousands in 2000, according to the and helped recruit several in- Menlo Ventures, which last ated the chairman role in $300 million fund, less than
of workers in the industry, CRU Group. vestors, some partners wor- year began the process of re- 2013, after observing a lack of half the size of its previous
have been lobbying the U.S. Hong Kong-listed China ried that the firm relied on tiring two of its six investing fund from 2008.
government for such an in- Hongqiao Group Ltd., has be- him too much, and that his partners. “You need to have an “It’s why you don’t see lon-
quiry. They have also asked come the biggest alumi- outsize presence hampered it honest conversation of when it
‘I think it’s a gevity of a significant number
the U.S. government to file a num producer in the world, in developing new leadership, is the right time to go.” congenital problem,’ of firms,” said Ashton Ne-
complaint to the World Trade surpassing Russian behe- the people said. What retirement means whall, a co-founder of venture-
Organization. moth United Co. Rusal PLC. Over the past year, a group varies from firm to firm. At
one industry veteran fund investor Greenspring As-
In a statement, the Alumi- Some Chinese companies of Mr. Doerr’s colleagues and Menlo, it means staying active said of succession. sociates. “They fumble
num Association said that have already come under fire associates, including senior for three or four years, sitting passing the baton.”
“overcapacity, particularly in from U.S. authorities. The partner Ted Schlein and exec- on boards and cutting back on Mr. Doerr, who joined
China, is of paramount con- Commerce Department last utive coach Bill Campbell, pro- financial interests in the firm continuity among partners Kleiner in 1980, is credited
cern to the aluminum indus- month said it would investi- posed that Mr. Doerr take a to make room for younger from one fund to the next. “It with investing in Sun Micro-
try” as are “questionable gate China Zhongwang Hold- reduced role in a new fund it partners. Foundry Group, was pretty obvious that most systems, Netscape and Genen-
trading practices” that have ings Ltd. for trying to avoid was raising, said people famil- based in Boulder, Colo., has people in our business lurch tech, in addition to Google
hurt U.S. producers. U.S. import tariffs by trans- iar with the matter. Rather said it has no plans to expand from partnership to partner- and Amazon.
U.S. producers have said shipping aluminum through than resist—or retire—he beyond its five-member team ship,” he said. But some current and for-
they have evidence showing third countries. worked with them on a plan and will close shop whenever Venture firms can find their mer partners blame him for
that some Chinese aluminum China Zhongwang and letting him spend more time they decide to move on. prospects diminish quickly the firm’s decline after steer-
producers have received bil- China Hongqiao declined to mentoring and weighing in on But for firms that plan to when they fail to cultivate ing its funds into money-los-
lions of dollars in subsidies, comment. China’s Commerce investments, the people said. carry on, the lack of a succes- young partners. U.S. Venture ing clean-tech investments
including access to loans be- Ministry didn’t respond to a Kleiner is now pitching the sion plan can be a mortal Partners parted ways with and missing the first wave of
low market rates. request for comment. new fund to limited-partner weakness, said Dick Kramlich, several investors who made social media.
Take Your Investments

Wherever Life Takes You
Clarity. So you can jump straight to it.

With a streamlined dashboard, quick-read market indexes and
a seamless device-to-device experience, the new MarketWatch
gives you easy access to critical data wherever you are.
Explore now at MarketWatch.com
©2016 Dow Jones & Co. Inc. All rights reserved. 6DJ3355
MARKETS DIGEST B6 | THURSDAY’S MARKETS B7 | FINANCE WATCH B8
Argentina to Issue First Bank Dividends Can

Global Debt Since 2001 Work Against Investors
BLOOMBERG NEWS
BOND MARKETS | B8 HEARD ON THE STREET | B8
© 2016 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Friday - Sunday, April 8 - 10, 2016 | B5
As of 4 p.m. ET EUR/GBP 0.8084 À 0.14% YEN/DLR ¥108.06 g 1.58% GOLD 1236.20 À 1.12% OIL 37.26 g 1.30% 3-MONTH LIBOR 0.62880% 10-YR TREAS À 19/32 yield 1.689%
Old-School SNB A $5.19

Billion Bet
Prefers Silence... On Junk
BY BRIAN BLACKSTONE it limits the danger of having
ZURICH—Central bankers
have cemented their status as
the economy become too de-
pendent on the central bank.
Implicitly, it raises the ques-
Bonds
among the most powerful— tion: Do central bankers need BY CHRISTOPHER WHITTALL
and voluble—forces in finan- to talk so much?
cial markets. “After the financial crisis, French telecommunications
And then there are the there was a trend toward more giant Numericable-SFR SA
Swiss. transparency,” says Peter has sold $5.19 billion in
In an era when their coun- Rosenstreich, head of market debt in the largest-ever sale of
terparts are making speeches, strategy at Swissquote Bank. a single junk bond.
testifying before lawmakers “People at first embraced that, The debt sale showed that
and promising whatever dras- but now we are seeing that it investors’ appetite remains
tic action is necessary, Swit- adds extreme amounts of vola- strong for selected deals in
zerland’s monetary-policy tility unnecessarily.” the U.S. junk-bond market,
makers stick to the old ways, Swiss National Bank Chair- which sold off sharply in late
where central bankers are man Thomas Jordan and other 2015 and earlier this year.
JACOB MAENTZ/CORBIS
rarely seen on a big stage and top SNB officials held their The sale of 10-year debt,
even more rarely heard. first news conference of 2016 which was priced on Wednes-
The conservative style isn’t on Wednesday—to unveil the day, was increased from $2.25
without consequences. The new 50 franc bank note—but billion amid strong investor
small country is surrounded by didn’t discuss monetary policy. demand. It is the largest-ever
monetary-policy makers who There have been only a single-tranche debt sale in the
appear more active in trying to handful of speeches from the Working a coconut plantation in the Philippines, the world’s largest producer or coconut oil. junk-bond market, according
guide markets and their cur- three members of the SNB’s to data provider Dealogic.
Price Goes Nuts as

rencies. Staying quiet means board posted on the bank’s There have been larger issues,
fewer tools as the Swiss con- website this year. In sharp but they were deals sliced into
front what is widely viewed in- contrast, on Thursday alone various tranches.
side and outside Switzerland the European Central Bank re- “Throughout all this volatil-
as an overvalued franc that leased the minutes of its ity, it is reinforcing the mes-
Coconuts Go Trendy
could threaten the country’s March meeting while at least sage that the market is open
export-driven economy. four council members gave for the right kind of credit,”
But it also keeps Swiss offi- testimony or speeches, with said Mitch Reznick, co-head of
cials from appearing to make the bank’s chief economist sig- credit at Hermes Investment
promises they can’t keep. And Please see SILENT page B7 Management, who bought
BY LUCY CRAYMER is used in everything from significantly in the near fu- some of the bonds.
dish detergent to medicine. ture, analysts say. He said the company’s shift
...While ECB Chatter

Coconut oil prices have The result has been a jump Farmers in the Philippines, away from acquisitions-led
soared nearly 20% in a month, in prices since February, to an the world’s largest producer of growth toward focusing on
largely because of the growing average in March of $1,448 a coconut oil, for example, are stabilizing the business and
popularity of specialty prod- metric ton, according to World increasingly being asked to investment should be more
Keeps a Lid on Euro ucts such as coconut water.

In supermarkets, coconuts
are being sold with pull tabs
to be drunk like beer. Coconut
Bank data released late
Wednesday. That is more than
50% higher than the average
price in 2013.
harvest younger coconuts, as
middlemen chase after the
higher prices they net over
fully mature ones.
beneficial for bondholders.
Numericable declined to
comment.
The deal comes after a vol-
BY CHRISTOPHER WHITTALL bank’s attempts to boost sugar is being touted as Meanwhile, the interest in In the Philippines, coconut- atile period for U.S. junk
stubbornly weak inflation. healthier for diabetics. And specialty products is only ex- water exports more than dou- bonds. The average gap in
For the European Central “The effects of a strong U.S. actress Gwyneth Paltrow pected to grow. bled to 66.3 million liters and yield between U.S. high-yield
Bank, old habits die hard. currency are still the same— is among celebrity coconut Global consumption of co- virgin coconut oil was up 61% bonds and U.S. Treasurys has
The ECB says it doesn’t it creates problems for econ- fans, once revealing she conut water jumped 13% from to 34,227 metric tons in the 11 narrowed to about 6.5 per-
target the exchange rate. But omies fighting [to increase] swishes around virgin coconut 2014 to 2015, following a 24% months to November 2015, ac- centage points on Wednesday,
bank officials have a habit of inflation,” said Matthew Co- oil for oral health and whiten- increase the previous year, according to the latest available according to Barclays. That
stepping up to talk the euro bon, head of interest rates ing her teeth. cording to data from beverage data from the United Coconut comes amid a global rally in
down whenever it rises too and currency at Columbia Such trendy products come research firm Canadean. Associations of the Philip- riskier assets and compares to
far. Threadneedle Investments. from young green coconuts, The trend toward specialty pines. a recent high of 8.4 percentage
MONEYBEAT Investors “The ECB may still want fresh coconut and the trees’ products is being felt through- In the same period, copra points in mid-February.
often see to address that indirectly flowers. That leaves less dried out the coconut industry, sug- and coconut-oil exports fell The U.S. junk-bond market
roughly the through broader comments coconut—copra—to be made gesting that prices for conven- slightly, and the industry sold off in late 2015, when a
$1.15 mark as a level that about additional stimulus,” into the conventional oil that tional oil aren’t likely to drop Please see NUTS page B7 sharp fall in commodity prices
sends the eurozone’s central he said. hit the resource companies
bankers to the microphones. The ECB has form when it that have been big issuers of
That happened again on comes to talking down the Oil and Water Don't Mix this debt. Investors were also
Thursday. The euro climbed euro. The Philippines, the world's largest producer of coconut oil, has seen exports of oil made from dried spooked by the closure of a
as high as $1.1456 in early When the euro was head- coconut stagnate while demand for products like water, made from younger coconuts, booms. credit fund overseen by Third
European trading before two ing toward the $1.15 level in Avenue Management LLC.
senior ECB officials made October last year, Yves 2015 exports* Change from previous year Since then, conditions have
speeches underlining the Mersch, a member of the improved for high-yield inves-
Coconut water 66.3 million liters 105%
bank’s readiness to provide ECB’s executive board, said tors. Oil prices have re-
fresh monetary easing if Please see EURO page B7 Fresh coconuts 3.2 million pieces 88 bounded and the U.S. Federal
needed. Thursday’s com- Reserve has signaled it is in
ments helped push the euro MONEYBEAT Virgin coconut oil 34,227 metric tons 61 no hurry to raise interest
down against the buck to be- rates, making higher-yield in-
low $1.14. Read the Copra 480 metric tons –0.6 vestments more attractive.
Before Thursday’s
speeches the euro had
gained roughly 5% against
WSJ
.COM
continuously
updated look
inside the
Coconut oil 816,330 metric tons –1.5
Investors poured $3.3 bil-
lion into high-yield bond funds
in the first three months of
Desiccated coconut 62,166 metric tons –40
the dollar year-to-date, and markets, free 2016, according to strategists
that complicates the central online at wsj.com/moneybeat *January-November Source: United Coconut Associations of the Philippines THE WALL STREET JOURNAL. at Bank of America Corp.
Earnings Outlook Too Bearish J.P. Morgan: We’re Just Right

BY STEVEN RUSSOLILLO first quarter. BY EMILY GLAZER and ability to absorb losses— the conclusion that continuing
Furthermore, if earnings for the entire industry in cer- our strategy and delivering on
This equity rally has few fall again, it will mark the J.P. Morgan Chase & Co. tain cases. our commitments is the high-
believers. That might actu- fourth consecutive quarterly says it is huge, but only in the J.P. Morgan “alone has est-certainty path to enhanc-
ally bode well ahead of what decline. The last time that best way, and just sprawling enough loss absorbing re- ing long-term shareholder
is expected to be another happened was during the fi- enough to serve its clients sources to bear all the losses, value.”
poor earnings season. nancial crisis. without being unmanageable. assumed by [a ‘stress test’ is- That presentation also ref-
The S&P 500 has surged Of course, earnings esti- Those were among the sued by the Federal Reserve], erenced $18 billion in pretax
about 12% since bottoming mates have a propensity for takeaways as the country’s of the 31 largest banks in the synergies, and the bank said
in February and is roughly falling too far just before the biggest bank by assets again United States,” Mr. Dimon Thursday that each of its busi-
flat for the year. Yet a funny reporting period begins. argued that its size is a bene- wrote in his 50-page letter. He nesses benefits from its $9 bil-
WADE PAYNE/REUTERS
thing has happened through- Companies often hurdle the fit and not a problem that added that large U.S. banks lion in annual technology
out the mar- lowered bar. should worry shareholders or are far stronger because of spending, which includes more
AHEAD ket’s rebound: The S&P 500 has risen regulators. regulations and higher capital than $600 million the bank ex-
OF THE The skeptics during three of the previous In a proxy statement re- requirements. pects to spend this year on cy-
TAPE still are pretty four earnings seasons, ac- leased Thursday morning, J.P. Yet J.P. Morgan has contin- bersecurity.
pessimistic. cording to John Butters at Morgan pushed back against a ued to face more-forceful The shareholder vote was
Short inter- Alcoa releases results Monday. FactSet. shareholder proposal for a questions from analysts, inves- requested by Bartlett Naylor, a
est, or bearish bets, on the While such positive “sur- bank breakup, pointing to its tors and shareholders during shareholder activist and a fi-
average S&P 500 stock reason is the looming earn- prises” are nothing new, the business synergies, benefits of the past year over whether it nancial-policy advocate at the
jumped to as much as 3.5% ings season, unofficially kick- market’s reaction to a bet- scale and value to clients. might be better for sharehold- consumer-rights group Public
of available shares by mid- ing off with Alcoa Inc.’s ter-than-expected round of The bank also said it has ers if the global bank broke it- Citizen.
February, according to data quarterly report on Monday. earnings might not be typi- slimmed down even more in self up into smaller, more- He and others have raised
provider Markit. That is the In short, earnings aren’t cal. the past year, reducing assets manageable units. The issue of the issue multiple times in
highest since November expected to be good. With pessimism, and by about $200 billion, drop- whether banks should be bro- previous years with other big
2009, capping an upswing By FactSet’s count, first- short interest, so high, earn- ping its regulatory capital sur- ken up is also a consistent banks as well, without getting
that began last August dur- quarter earnings are forecast ings surprising to the upside charge by 1 percentage point, topic on the presidential cam- much traction.
ing the summer selloff. to log a contraction of 8.5%, could prolong the recent and nearly wrapping up an ef- paign trail. Mr. Naylor proposed that
While short interest has with energy companies gar- rally. fort to simplify its business. The bank said in its proxy J.P. Morgan as well as Citi-
since edged lower from the nering much of the blame. The bears may be growl- Less than 24 hours earlier, that the board reviewed a group Inc. each create an in-
February high, it remains at As recently as December, the ing, but the bulls might have however, Chairman and Chief breakup analysis with manage- dependent board committee to
a still-elevated 3.1%. S&P 500’s earnings-growth the last laugh. Executive James Dimon’s an- ment that was presented address whether the bank
So why haven’t the bears rate was projected to be nual shareholder letter touted throughout its February 2015 would be more valuable to
lost much conviction? One slightly positive during the Email: [email protected] the virtues of the bank’s size investor day. It “concurred in Please see JPM page B8
MARKETS DIGEST
Nikkei 225 Index STOXX 600 Index S&P 500 Index Data as of 4 p.m. New York time
Last Year ago
15749.84 s 34.48, or 0.22% Year-to-date t 17.25% 328.10 t 2.55, or 0.77% Year-to-date t 10.31% 2041.91 t 24.75, or 1.20% Trailing P/E ratio * 23.82 20.25
High, low, open and close for each 52-wk high/low20868.03 14952.61 High, low, open and close for each 52-wk high/low 414.06 303.58 High, low, open and close for each P/E estimate * 17.49 17.39
trading day of the past three months. All-time high 38915.87 12/29/89 trading day of the past three months. All-time high 414.06 4/15/15 trading day of the past three months. Dividend yield 2.20 2.01
All-time high: 2130.82, 05/21/15
* P/E data based on as-reported earnings from Birinyi Associates Inc.

65-day moving average 65-day moving average
19000 370 2100
18000 355 65-day moving average 2050
17000 340 2000
16000 325 1950
Session high
DOWN UP 15000 310 1900
t
Session open Close
Close Open
t
14000 295 1850
Bars measure the point change from session's open Session low
13000 280 1800
Jan. Feb. Mar. Apr. Jan. Feb. Mar. Apr. Jan. Feb. Mar. Apr.
International Stock Indexes Data as of 4 p.m. New York time Global government bonds
Latest 52-Week Range YTD Latest, month-ago and year-ago yields and spreads over or under U.S. Treasurys on benchmark two-year
Region/Country Index Close NetChg % chg Low Close High % chg and 10-year government bonds around the world. Data as of 3 p.m. ET
World The Global Dow 2264.86 –15.24 –0.67 2033.03 • 2643.78 –3.1 Country/ Spread Over Treasurys, in basis points Yield
MSCI EAFE 1604.00 –2.58 –0.16 1471.88 • 1956.39 –6.5 Coupon Maturity, in years Yield Latest Previous Month Ago Year ago Previous Month ago Year ago
MSCI EM USD 807.65 –1.38 –0.17 691.21 • 1067.74 1.7 5.500 Australia 2 1.884 118.1 114.3 106.2 128.4 1.883 1.967 1.804
4.250 10 2.462 77.2 69.0 68.3 47.2 2.447 2.592 2.360
Americas DJ Americas 488.34 –5.74 –1.16 433.38 • 525.25 0.2
3.500 Belgium 2 -116.2 -135.2 -70.6 -0.442 -0.446 -0.186
-0.459 -118.1
Brazil Sao Paulo Bovespa 48409.20 312.96 0.65 37046.07 • 58574.79 11.7
0.800 10 0.356 -133.4 -138.3 -137.9 -153.7 0.374 0.530 0.352
Canada S&P/TSX Comp 13255.52 –91.94 –0.69 11531.22 • 15524.75 1.9
4.250 France 2 -0.443 -114.6 -117.0 -134.1 -68.5 -0.431 -0.436 -0.165
Mexico IPC All-Share 45049.89 –232.08 –0.51 39256.58 • 46307.61 4.8
0.500 10 0.438 -125.2 -130.2 -135.9 -141.9 0.455 0.550 0.470
Chile Santiago IPSA 3090.07 5.37 0.17 2730.24 • 3361.36 5.0
0.500 Germany 2 -0.501 -120.5 -122.0 -141.7 -77.7 -0.481 -0.511 -0.257
U.S. DJIA 17541.96 –174.09 –0.98 15370.33 • 18351.36 0.7
0.500 10 0.094 -159.6 -163.5 -168.3 -172.9 0.122 0.225 0.159
Nasdaq Composite 4848.37 –72.35 –1.47 4209.76 • 5231.94 –3.2
4.500 Italy 2 0.054 -65.0 -72.5 -94.8 -43.2 0.014 -0.042 0.088
S&P 500 2041.91 –24.75 –1.20 1810.10 • 2134.72 –0.1
2.000 10 1.398 -29.2 -47.3 -44.5 -69.8 1.284 1.464 1.191
CBOE Volatility 16.39 2.30 16.32 10.88 • 53.29 –10.0
0.100 Japan 2 -0.235 -93.9 -96.8 -111.4 -49.9 -0.228 -0.208 0.021
EMEA Stoxx Europe 600 328.10 –2.55 –0.77 303.58 • 414.06 –10.3 0.100 10 -0.058 -174.8 -181.4 -195.5 -152.7 -0.057 -0.047 0.361
Stoxx Europe 50 2724.36 –16.76 –0.61 2556.96 • 3602.76 –12.1 0.500 Netherlands 2 -0.485 -118.9 -122.4 -141.3 -71.3 -0.484 -0.507 -0.193
Austria ATX 2210.18 –29.42 –1.31 1929.73 • 2695.57 –7.8 0.250 10 0.192 -149.8 -154.9 -155.2 -161.2 0.208 0.356 0.277
Belgium Bel-20 3319.99 –25.38 –0.76 3117.61 • 3910.33 –10.3 4.350 Portugal 2 0.312 -39.2 -47.5 -69.9 -51.1 0.265 0.207 0.009
France CAC 40 4245.91 –38.73 –0.90 3892.46 • 5283.71 –8.4 2.875 10 3.236 154.6 123.9 104.2 -26.3 2.996 2.951 1.626
Germany DAX 9530.62 –93.89 –0.98 8699.29 • 12390.75 –11.3 4.500 Spain 2 0.060 -64.4 -72.2 -94.4 -45.0 0.017 -0.039 0.070
Greece ATG 554.50 0.38 0.07 420.82 • 857.92 –12.2 1.950 10 1.621 -6.9 -24.1 -32.6 -71.0 1.516 1.582 1.178
Hungary BUX 26397.46 99.35 0.38 20452.90 • 26452.41 10.4 3.750 Sweden 2 -0.651 -135.5 -139.0 -151.1 -85.3 -0.651 -0.605 -0.333
Israel Tel Aviv 1443.50 –0.42 –0.03 1383.34 • 1728.89 –5.6 1.000 10 0.719 -97.1 -107.9 -136.8 -148.2 0.678 0.540 0.406
Italy FTSE MIB 16818.25 –422.66 –2.45 15773.00 • 24157.39 –21.5 1.250 U.K. 2 0.355 -34.9 -34.3 -49.3 4.5 0.397 0.413 0.565
Netherlands AEX 428.73 –2.28 –0.53 378.53 • 510.55 –3.0 2.000 10 1.330 -35.9 -37.2 -42.6 -29.5 1.385 1.482 1.593
Poland WIG 47231.36 –120.72 –0.25 41747.01 • 57460.44 1.6 0.875 U.S. 2 0.704 ... ... ... ... 0.740 0.906 0.520
Russia RTS Index 859.24 –4.05 –0.47 607.14 • 1092.52 13.5 1.625 10 1.690 ... ... ... ... 1.757 1.908 1.888
Spain IBEX 35 8292.90 –105.70 –1.26 7746.30 • 11884.60 –13.1
Sweden SX All Share 472.48 –6.16 –1.29 432.78 • 564.90 –6.5 Commodities Prices of futures contracts with the most open interest 3:30 p.m. New York time
Switzerland Swiss Market 7761.35 –6.88 –0.09 7425.05 • 9537.90 –12.0 EXCHANGE LEGEND: CBOT: Chicago Board of Trade; CME: Chicago Mercantile Exchange; ICE-US: ICE Futures U.S.; MDEX: Bursa Malaysia
South Africa Johannesburg All Share 51146.82 –37.50 –0.07 45975.78 • 55355.12 0.9 Derivatives Berhad; TCE: Tokyo Commodity Exchange; COMEX: Commodity Exchange; LME: London Metal Exchange;
NYMEX: New York Mercantile Exchange; ICE-EU: ICE Futures Europe. *Data as of 4/6/2016
Turkey BIST 100 81164.66 –346.61 –0.43 68230.47 • 88651.88 13.2
One-Day Change Year Year
U.K. FTSE 100 6136.89 –24.74 –0.40 5499.51 • 7122.74 –1.7 Commodity Exchange Last price Net Percentage high low
361.50 3.50 0.98% 378.25 347.25
Asia-Pacific DJ Asia-Pacific TSM 1326.96 8.70 0.66 1188.42 • 1621.10 –4.5 Corn (cents/bu.) CBOT
Soybeans (cents/bu.) 904.00 -4.00 -0.44% 922.25 856.00
Australia S&P/ASX 200 4964.10 18.20 0.37 4765.30 • 5982.70 –6.3
Wheat (cents/bu.)
CBOT
CBOT 457.75 -5.25 -1.13 493.50 442.25
China Shanghai Composite 3008.42 –42.17 –1.38 2655.66 • 5166.35 –15.0
Live cattle (cents/lb.) CME 121.775 -0.075 -0.06 131.350 118.775
Hong Kong Hang Seng 20266.05 59.38 0.29 18319.58 • 28442.75 –7.5
Cocoa ($/ton) ICE-US 2,870 -42 -1.44 3,211 2,746
India S&P BSE Sensex 24685.42 –215.21 –0.86 22951.83 • 29044.44 –5.5
Coffee (cents/lb.) ICE-US 119.75 -1.75 -1.44 136.40 113.35
Japan Nikkei Stock Avg 15749.84 34.48 0.22 14952.61 • 20868.03 –17.3
Sugar (cents/lb.) ICE-US 14.40 -0.22 -1.50 16.75 12.61
Singapore Straits Times 2813.59 2.34 0.08 2532.70 • 3539.95 –2.4
Cotton (cents/lb.) ICE-US 58.87 0.12 0.20 64.30 54.53
South Korea Kospi 1973.89 2.57 0.13 1829.81 • 2173.41 0.6 Robusta coffee ($/ton) ICE-EU 1497.00 27.00 1.84 1,568.00 1,342.00
Taiwan Weighted 8490.25 –23.05 –0.27 7410.34 • 9973.12 1.8
Copper ($/lb.) COMEX 2.0735 -0.0700 -3.27 2.3235 1.9440
Source: SIX Financial Information;WSJ Market Data Group Gold ($/troy oz.) COMEX 1241.10 17.30 1.41 1,287.80 1,063.00
Silver ($/troy oz.) COMEX 15.195 0.141 0.94 16.170 13.760
Currencies London close on April 7 Aluminum ($/mt)* LME 1,504.50 -14.50 -0.95 1,588.50 1,451.50
Tin ($/mt)* LME 16,355.00 -150.00 -0.91 17,500.00 13,225.00
Yen, euro vs. dollar; dollar vs. major U.S. trading partners US$vs,
Thu YTDchg Copper ($/mt)* LME 4,755.50 -7.50 -0.16 5,070.50 4,320.50
10% Country/currency in US$ per US$ (%) Lead ($/mt)* LME 1,696.00 -16.00 -0.93 1,888.00 1,598.00
8 s Europe Zinc ($/mt)* LME 1,797.00 -16.00 -0.88 1,866.00 1,467.00
6 Euro WSJ Dollar index
s Bulgaria lev 0.5823 1.7174 –4.6 Nickel ($/mt)* LME 8,520.00 195.00 2.34 9,400.00 7,750.00
4
Croatia kuna 0.1516 6.595 –5.9 Rubber (Y.01/ton) TCE 178.70 -1.40 -0.78 183.40 175.10
2
Euro zone euro 1.1386 0.8783 –4.6
0 Palm oil (MYR/mt) MDEX 2710.00 -12.00 -0.44 2,793.00 2,419.00
Czech Rep. koruna-b 0.0421 23.732 –4.6
–2 s
Denmark krone 0.1530 6.5351 –4.9 Crude oil ($/bbl.) NYMEX 37.45 -0.30 -0.79 42.49 29.85
–4 Yen
Hungary forint 0.003648 274.12 –5.6 NY Harbor ULSD ($/gal.) NYMEX 1.1288 -0.0115 -1.01 1.2840 0.8950
–6 Iceland krona 0.008068 123.94 –4.8
–8 RBOB gasoline ($/gal.) NYMEX 1.3868 -0.0079 -0.57 1.5782 1.1488
Norway krone 0.1200 8.3303 –5.8
0.2648 3.7763 –3.8
Natural gas ($/mmBtu) NYMEX 2.016 0.105 5.49 2.5490 1.7310
2015 2016 Poland zloty
Russia ruble-d 0.01468 68.121 –5.3 Brent crude ($/bbl.) ICE-EU 39.57 -0.27 -0.68 43.10 29.31
US$vs, US$vs,
YTDchg YTDchg Sweden krona 0.1227 8.1531 –3.5 Gas oil ($/ton) ICE-EU 334.50 1.00 0.30 384.00 266.50
Thu Thu
Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%) Switzerland franc 1.0472 0.9549 –4.7
Turkey lira 0.3500 2.8573 –2.1 Sources: SIX Financial Information; WSJ Market Data Group
Americas Hong Kong dollar 0.1289 7.7570 0.1
Ukraine hryvnia 0.0388 25.7595 7.4
Argentina peso-a 0.0688 14.5260 12.3
India rupee
Indonesia rupiah
0.0150
0.0000759
66.6973 0.7
13177 –4.8
U.K. pound 1.4086 0.7099 4.6 Cross rates London close on Apr 7
Brazil real 0.2701 3.7030 –6.5 Middle East/Africa
Japan yen 0.009254 108.06 –10.2
Canada dollar 0.7597 1.3163 –4.9 USD GBP CHF JPY HKD EUR CDN AUD
Kazakhstan tenge 0.002924 341.95 0.9 Bahrain dinar 2.6519 0.3771 –0.003
Chile peso 0.001467 681.80 –3.8 Australia 1.3317 1.8761 1.3947 0.0123 0.1717 1.5165 1.0120 ...
Macau pataca 0.1249 8.0084 0.1 Egypt pound-a 0.1126 8.8792 13.4
Colombia peso 0.0003214 3111.31 –2.0 Canada 1.3163 1.8541 1.3786 0.0122 0.1696 1.4986 ... 0.9881
Malaysia ringgit-c 0.2538 3.9403 –8.4 Israel shekel 0.2641 3.7870 –2.7
Ecuador US dollar-f 1 1 unch
New Zealand dollar 0.6772 1.4767 0.9 Kuwait dinar 3.3155 0.3016 –0.6 Euro 0.8783 1.2372 0.9198 0.0081 0.1132 ... 0.6673 0.6594
Mexico peso-a 0.0559 17.9023 4.1
Pakistan rupee 0.0096 104.700 –0.2 Oman sul rial 2.5971 0.3850 0.02 Hong Kong 7.7570 10.9280 8.1233 0.0718 ... 8.8330 5.8946 5.8247
Peru sol 0.2952 3.3873 –0.8
Philippines peso 0.0216 46.268 –1.3 Qatar rial 0.2745 3.642 –0.006 Japan 108.0580 152.2300 113.1700 ... 13.9320 123.0300 82.1117 81.1400
Uruguay peso-e 0.0319 31.320 4.7
Singapore dollar 0.7398 1.3517 –4.7 Saudi Arabia riyal 0.2667 3.7501 –0.1 0.9549 1.3451 ... 0.0088 0.1231 1.0873 0.7254 0.7169
Venezuela bolivar 0.100150 9.99 58.4 Switzerland
South Korea won 0.0008639 1157.60 –1.6 South Africa rand 0.0658 15.1880 –1.9
U.K. 0.7099 ... 0.7434 0.0066 0.0915 0.8084 0.5395 0.5330
Asia-Pacific Sri Lanka rupee 0.0068861 145.22 0.7 Close Net Chg % Chg YTD % Chg
0.7509 1.3317 –3.0 Taiwan dollar 0.03084 32.422 –1.5 U.S. ... 1.4086 1.0472 0.0093 0.1289 1.1386 0.7597 0.7509
Australia dollar WSJ Dollar Index 86.46 –0.03 –0.03 –4.12
China yuan 0.1547 6.4632 –0.5 Thailand baht 0.02842 35.190 –2.3 Sources: Tullett Prebon, WSJ Market Data Group Source: Tullett Prebon
Key Rates Top Stock Listings 4 p.m. New York time

Latest 52 wks ago % YTD% % YTD% % YTD%
Libor Cur Stock Sym Last Chg Chg Cur Stock Sym Last Chg Chg Cur Stock Sym Last Chg Chg Asia Titans 50
One month 0.43645% 0.18000% ¥ TakedaPharm 4502 5155.00 1.74 -15.00 £ RioTinto RIO 1917.50 -0.88 -3.13 Last: 124.78 s 1.32, or 1.07% YTD t 8.4%
Three month 0.62880 0.27590 Asia Titans HK$ TencentHoldings 0700 161.80 1.76 5.96 CHF RocheHldgctf ROG 243.00 0.45 -12.08
140
Six month 0.89465 0.40340 HK$ AIAGroup 1299 42.65 0.47 -8.48 ¥ TokioMarineHldg 8766 3473.00 -0.52 -26.29 £ RoyDtchShell A RDSA 1666.50 0.21 9.21
One year 1.20555 0.69435 ¥ AstellasPharma 4503 1420.50 1.72 -17.96 ¥ ToyotaMtr 7203 5424.00 -0.60 -27.56 € SAP SAP 68.19 -1.35 -7.07 130
Euro Libor AU$ AustNZBk ANZ 22.62 0.31 -19.01 AU$ Wesfarmers WES 40.46 -0.10 -2.76 € Sanofi SAN 74.70 -0.08 -4.96
120
One month -0.33643% -0.03357% AU$ BHP BHP 16.39 1.55 -8.23 AU$ WestpacBanking WBC 28.86 0.63 -14.00 € SchneiderElectric SU 52.22 -1.30 -0.65
High
t
Three month -0.25757 0.00643 HK$ BankofChina 3988 3.05 -0.97 -11.85 AU$ Woolworths WOW 21.33 -0.05 -12.94 € Siemens SIE 88.08 -1.95 -2.00 50–day 110
Six month -0.14486 0.06643 HK$ CKHutchison 0001 99.25 -0.55 -4.93 € Telefonica TEF 9.11 -0.08 -11.02 Close
moving average 100
One year -0.02357 0.19000 HK$ CNOOC 0883 8.78 2.21 8.80 Stoxx 50 € Total FP 38.58 -0.77 -5.57 Low
90
Euribor ¥ Canon 7751 3131.00 -1.07 -14.80 CHF ABB ABBN 18.22 -0.65 1.45 CHF UBSGroup UBSG 14.42 -1.03 -26.13
One month -0.33900% -0.02200% ¥ CentralJapanRwy 9022 18895 1.04 -12.52 € AXA CS 19.46 -1.89 -22.85 € Unilever UNA 39.53 -0.40 -1.42 8 15 22 29 5 12 19 26 4 11 18 25 1
Three month -0.24700 0.01200 HK$ ChinaConstructnBk 0939 4.83 ... -9.04 € AirLiquide AI 93.42 -1.76 -9.87 £ Unilever ULVR 3241.00 -0.03 10.75 Feb. Mar. Apr.
Six month -0.13400 0.08100 HK$ ChinaLifeInsurance 2628 17.92 -0.99 -28.61 € Allianz ALV 136.10 -1.13 -16.78 £ VodafoneGroup VOD 222.75 1.37 0.79
One year -0.00700 0.19000 HK$ ChinaMobile 0941 86.25 1.59 -1.43 € Anheuser Busch ABI 107.10 -1.11 -6.38 CHF ZurichInsurance ZURN 196.00 -1.61 -24.15
Yen Libor AU$ CmwlthBkAust CBA 70.99 -0.22 -17.00 £ AstraZeneca AZN 4167.50 0.97 -9.73
DJIA Stoxx 50
One month 0.22429% 0.24000% ¥ EastJapanRailway 9020 9407.00 2.29 -17.84 € BASF BAS 62.01 -1.60 -12.32
16500 0.76 -21.73 58.88 -1.67 -15.34 Last: 2724.36 t 16.76, or 0.61% YTD t 12.1%
Three month 0.55643 0.38714 ¥ Fanuc 6954 € BNP Paribas BNP 41.35 -3.84 -20.83 $ AmericanExpress AXP
Six month 0.88946 0.53857 ¥ Hitachi 6501 468.50 -0.99 -32.25 £ BT Group BT.A 440.05 -0.47 -6.71 $ Apple AAPL 108.55 -2.17 3.13 3150
One year 1.28536 0.84143 TW$ Hon Hai Precisn 2317 81.50 0.37 0.87 € BancoBilVizAr BBVA 5.32 -2.63 -20.21 $ Boeing BA 127.02 -0.71 -12.15
¥ HondaMotor 7267 2852.00 -0.58 -27.06 € BancoSantander SAN 3.58 -1.73 -21.54 $ Caterpillar CAT 74.18 -1.38 9.15 3000
Offer
KRW HyundaiMtr 005380 146500 1.74 -1.68 £ Barclays BARC 147.10 -1.64 -32.80 $ Chevron CVX 94.81 -0.03 5.39 2850
Eurodollars
HK$ Ind&Comml 1398 4.07 -0.97 -13.03 € Bayer BAYN 100.15 -1.09 -13.51 $ CiscoSystems CSCO 27.59 -1.45 1.62
One month 0.4500% 0.3500%
46.36
2700
Three month 0.6500 0.5500
¥ JapanTobacco 2914 4561.00 -1.47 2.01 £ BP BP. 339.30 -0.07 -4.15 $ CocaCola KO -0.75 7.91
¥ KDDI 9433 2991.50 3.26 -5.15 £ BritishAmTob BATS 4148.50 0.58 10.01 $ Disney DIS 96.17 -1.34 -8.48 2550
Six month 0.9000 0.8000
¥ Mitsubishi 8058 1775.50 1.00 -12.45 CHF FinRichemont CFR 59.00 -3.20 -18.17 $ DuPont DD 62.83 -1.06 -5.66 2400
One year 1.2500 1.1500
¥ MitsuUFJFin 8306 482.80 -0.37 -36.23 CHF CreditSuisse CSGN 12.75 -1.01 -41.22 $ ExxonMobil XOM 82.38 -1.12 5.68
Latest 52 wks ago
1234.00 1.65 -14.63 $ GenElec GE 30.62 -0.91 -1.70 8 15 22 29 5 12 19 26 4 11 18 24 1
¥ Mitsui 8031 € Daimler DAI 59.52 0.46 -23.28
Feb. Mar. Apr.
Prime rates ¥ Mizuho Fin 8411 152.90 -0.33 -37.21 € Deutsche Bank DBK 13.74 -2.97 -38.98 $ GoldmanSachs GS 150.46 -3.05 -16.52
U.S. 3.50% 3.25% ¥ NTTDoCoMo 9437 2547.50 2.64 2.56 € DeutscheTelekom DTE 15.10 -0.30 -9.53 $ HomeDepot HD 133.87 -1.16 1.22
Canada 2.70 2.85 AU$ NatAustBnk NAB 25.52 0.08 -15.50 £ Diageo DGE 1910.00 0.24 2.88 $ Intel INTC 31.55 -1.64 -8.40
Japan
Hong Kong
1.475
5.00
1.475
5.00
¥ NipponStl&SmtmoMtl 5401 2041.00
4739.00
-0.83
1.87
-15.52
-2.01
€ ENI ENI 12.32 -1.99 -10.72 $
$
IBM
JPMorganChase
IBM
JPM
148.21
57.32
-1.21
-2.53
7.70
-13.19
Dow Jones Industrial Average P/E: 18
¥ NipponTeleg 9432 £ GlaxoSmithKline GSK 1474.50 0.89 7.39
Policy rates ¥ NissanMotor 7201 946.20 -0.21 -26.05 £ HSBC Hldgs HSBA 416.15 -0.89 -22.39 $ JohnsJohns JNJ 109.27 -0.14 6.38 Last: 17541.96 t 174.09, or 0.98% YTD s 0.7%
ECB 0.00% 0.05% ¥ NomuraHldgs 8604 447.00 -1.15 -34.18 € INGGroep INGA 9.99 -2.20 -19.76 $ McDonalds MCD 128.17 0.51 8.49
$ Merck MRK 55.42 -0.38 4.92 18000
Britain 0.50 0.50 ¥ Panasonic 6752 879.20 1.02 -29.13 £ ImperialBrands IMB 3848.50 0.16 7.31
Switzerland 0.50 0.50 HK$ PetroChina 0857 4.88 0.62 -4.13 € IntesaSanpaolo ISP 2.16 -3.31 -29.92
$ Microsoft MSFT 54.46 -1.20 -1.84 17400
Australia 2.00 2.25 HK$ PingAnInsofChina 2318 35.00 -0.71 -18.41 € LVMHMoetHennessy MC 145.15 -0.65 0.17
$ NikeClB NKE 60.32 0.02 -3.49
16800
U.S. discount 1.00 0.75 $ RelianceIndsGDR RIGD 30.90 ... 0.98 £ LloydsBankingGroup LLOY 64.82 -1.79 -11.29
$ Pfizer PFE 32.76 -0.52 1.49
Fed-funds target 0.25 0.00 42.97 1.49 -3.89 $ Procter&Gamble PG 83.23 -0.69 4.81 16200
AU$ RioTinto RIO € LOreal OR 155.15 -0.64 -0.10
Call money 2.25 2.00 KRW SamsungElectronics 005930 1269000 -1.25 0.71 £ NationalGrid NG. 998.20 0.42 6.47
$ 3M MMM 167.19 0.23 10.99 15600
4489.00 -1.60 -19.12 $ TravelersCos TRV 114.61 -1.14 1.55
Overnight repurchase rates ¥ Seven&I Hldgs 3382 CHF Nestle NESN 71.95 0.07 -3.49 15000
5604.00 1.65 -8.71 $ UnitedTech UTX 100.92 0.55 5.05
U.S. 0.44% 0.22% ¥ SoftBankGroup 9984 CHF Novartis NOVN 71.60 0.85 -17.51
3121.00 -1.64 -32.24 $ UnitedHealthGroup UNH 126.85 -0.92 7.83 8 15 22 29 5 12 19 26 4 11 18 24 1
Euro zone n.a. n.a. ¥ Sumitomo Mitsui 8316 DKK NovoNordiskB NOVO-B 370.00 0.76 -7.48
91.90 0.55 -1.97 $ VISAClA V 77.58 -0.81 0.04 Feb. Mar. Apr.
HK$ SunHngKaiPrp 0016 £ Prudential PRU 1281.00 -2.25 -16.33
Sources: WSJ Market Data Group, SIX 154.50 0.65 8.04
$ Verizon VZ 52.00 -2.84 12.51 Note: Price-to-earnings ratios are for trailing 12 months
TW$ TaiwanSemiMfg 2330 £ ReckittBenckiser RB. 6804.00 -0.06 8.33
Financial Information, Tullett $ WalMart WMT 68.23 -1.17 11.31 Sources: WSJ Market Data Group; Birinyi Associates
THE WALL STREET JOURNAL. Friday - Sunday, April 8 - 10, 2016 | B7
MONEY & INVESTING
U.S. Stocks Decline

Amid Bid for Safety
BY AARON KURILOFF “What we have here is a big the biggest declines in the S&P
FABRICE COFFRINI/AGENCE FRANCE-PRESSE/GETTY IMAGES

AND CHRISTOPHER WHITTALL case of uncertainty about 500, falling 1.9%, with some
what’s next for monetary pol- analysts saying a slower pace
U.S. stocks slid, the yen icy and the most urgent case of interest-rate increases
strengthened and U.S. govern- is in Japan,” said Brian Jacob- threatens to undermine bank
ment bonds rose in a broad sen, chief portfolio strategist earnings.
pullback from risk Thursday. at Wells Fargo Funds Manage- The KBW Nasdaq Bank In-
The gain in traditional ha- ment. dex of large U.S. commercial
vens added to concerns about The dollar declined 1.2% lenders lost 2.9%, while Citi-
the strength of a rally that has against the yen to ¥108.407. group and Bank of America
sent stocks Japan’s currency has climbed fell 3.8% and 3.2%, respec-
THURSDAY’S roaring back higher this year partly as in- tively.
MARKETS from their vestors remained cautious in The Stoxx Europe 600 lost
m i d - Fe b r u - response to market swings 0.8% to 328.10, weighed down
ary lows. and sluggish global economies. by a fall in bank shares, which
The continued rise of The European Central Bank may suffer if the ECB decides
Japan’s currency this year, de- has faced a similar problem as to push interest rates further Journalists photograph images of the new 50-franc Swiss bank note on Wednesday in Bern.
spite aggressive stimulus mea- Japan—a strengthening cur- into negative territory. Shares
sures from the Bank of Japan,
has also raised investors’ con-
cerns about central banks’
ability to stoke growth.
rency despite ramped-up stim-
ulus efforts. On Thursday, ECB
chief economist Peter Praet
suggested the bank could
in European banks fell 2.2%.
U.S. crude oil lost 1.3% to
$37.26 a barrel as doubts per-
sisted that major oil producers
SILENT Bank of Norway.”
Communications from cen-
tral bankers can have a whip-
sawing effect on markets. The
Analysts at lender Nordea
estimate that the Swiss franc
is 20% overvalued against the
euro, the currency of Switzer-
The Dow Jones Industrial launch additional measures to will agree to rein in output. Continued from page B5 most recent case in point: The land’s main export destination,
Average fell 174.09 points, or cushion any new shocks to the In Asia, Chinese stocks naling that the ECB could ease U.S. dollar weakened, including the eurozone. The euro fetched
1%, to 17541.96 Thursday. The economy. slipped amid worries about policy further. against the Swiss franc, after 1.0871 francs in late European
S&P 500 fell 1.2%, and the In the U.S., minutes from the imminent expiration of The SNB’s first postmeeting Fed Chairwoman Janet Yellen trading Thursday, meaning the
Nasdaq Composite lost 1.5%. the Federal Reserve’s March temporary restrictions on news conference isn’t until suggested in a speech last franc is up about 10% since the
The yield on the 10-year policy meeting released large shareholders selling do- June—one of two it schedules week that the Fed would go start of 2015.
Treasury note fell to 1.689% Wednesday showed officials mestic stocks. each year, compared with four slow on future rate increases. To limit gains in the franc,
Thursday, its lowest level were unlikely to raise interest The Shanghai Composite In- from the U.S. Federal Reserve The ECB sent stock and which SNB officials routinely
since Feb. 11, compared with rates in April. dex fell 1.4%. The Nikkei Stock and eight from the ECB. (One bond markets up in March af- say is “significantly over-
1.753% Wednesday. Financial shares suffered Average rose 0.2%. wrinkle in Switzerland is that ter expanding its bond buying valued,” the SNB pushed its
its entire governing board par- and lowering interest rates key interest rate on bank de-
ticipates.) The SNB first further into negative territory, posits to minus-0.75% in Janu-
BTG: Inquiry Clears Ex-CEO started giving news confer-

ences in the 1970s when it was
headed by Fritz Leutwiler, con-
sidered one of the most promi-
then back down later the same
day when ECB President Mario
Draghi signaled rates may not
go down any further.
ary 2015 and has kept the door
open to reducing it further.
Even if the Swiss policy
makers wanted to manage ex-
BY LUCIANA MAGALHAES mittee in December, compris- attempting to persuade a sus- nent Swiss central bankers of The conservative streak of pectations, they might fail in
ing two independent directors pect in the Petrobras corrup- the 20th century. the Swiss doesn’t mean they the current environment. The
SÃO PAULO—Brazilian in- and one nonindependent di- tion case not to agree to a Like its peers, the Swiss aren’t willing to experiment. economy is small and very ex-
vestment bank BTG Pactual rector, to investigate the alle- plea bargain. central bank releases state- They embraced an extreme posed to trade, making it sen-
said Thursday that an internal gations against Mr. Esteves, Mr. Esteves has denied the ments to explain its monetary- form of forward guidance in sitive to the franc’s level par-
investigation found “no basis the bank’s former controlling allegations through his lawyer. policy decisions. But unlike the 2011. Amid a persistently ticularly against the euro. With
to conclude” that allegations partner. He was released to house ar- Fed, ECB, Bank of England and strong franc at the height of the eurozone economy about
of misconduct and corruption The independent investiga- rest in December but had to others, it doesn’t publish the euro crisis, the SNB 20 times bigger than Switzer-
against its former chief execu- tion is seen as an effort by turn over his passport and meeting minutes—and Mr. Jor- pledged to keep the euro from land’s, the ECB’s decisions typ-
tive officer, André Esteves, BTG, once a growing regional was prohibited from entering dan opposes doing so. trading below 1.20 Swiss ically have more sway over the
were “credible, accurate or investment bank, to try to re- BTG Pactual’s premises or hav- The SNB does publish a francs, and to intervene in franc than the SNB’s.
supported by reliable evi- build its credibility. But the ef- ing any dealings related to it. three-year inflation forecast. markets if needed. A communications revamp
dence.” BTG said Thursday that the But because it has wide berth Faced with mounting finan- seems unlikely. Because the
Mr. Esteves resigned as Brazilian arm of global ac- on its inflation objective—to cial risks from the hundreds of SNB board is so small, publish-
chairman and CEO of BTG last
Clients have pulled counting and consulting firm keep it under 2%, compared billions of francs worth of for- ing meeting minutes might
November, days after he was money from funds KPMG LLP collected electronic with other central banks that eign currencies on its balance harm the bank’s policy discus-
arrested as part of an investi- and hard-copy documents want inflation right around sheet, the SNB abandoned the sions, Mr. Jordan has said. One
gation into alleged corruption
managed by the from more than 50 BTG em- 2%—it is less clear what type franc ceiling in January 2015 concern is that it might stoke
at state-controlled oil com- Brazilian bank. ployees. of response the SNB’s fore- without warning. No one at speculation in markets over
pany Petróleo Brasileiro SA. About 430,000 documents casts might imply. the SNB greased the wheels who said what.
Mr. Esteves’s arrest were reviewed by lawyers “The SNB is on balance less with the markets in advance, “No central bank should
prompted many clients to pull fects of the effort may be lim- from Quinn Emanuel Urquhart transparent than the ECB or and the franc soared. simply jump on the latest
money from investment funds ited, Max Felipe Bohm, analyst & Sullivan LLP and the Veirano the Federal Reserve,” says Ste- Since then, the Swiss have monetary-policy bandwagon
managed by the bank, which at independent research firm law firms as well, the bank fan Gerlach, chief economist at stuck to a tight script, empha- without careful consideration,”
has been forced to sell assets Empiricus, said. “The impact said. BSI Bank and until last year sizing their willingness to do Mr. Jordan said in January
and significantly shrink its op- is small, as this is something William Burck, co-managing deputy governor of Ireland’s more if needed while main- 2014. “Sometimes, transpar-
erations as a consequence. The internal, and won’t change partner of the Washington of- central bank, “or the BOE or taining the mantra that the ency can be counterproduc-
value of the bank’s traded market perceptions much fice of Quinn Emanuel, said the [Swedish] Riksbank or the franc is too strong. tive.”
units has dropped by almost about the bank.” the investigation was carried
half since the day before Mr. Prosecutors allege that Mr. out with full independence
Esteves’s arrest. Esteves and a Brazilian sena- and no interference by the
BTG created a special com- tor tried to obstruct justice by bank. Lovely Bunch of Coconuts
The production of higher-value goods from younger coconuts means there are fewer coconuts for
EURO
making oil.
sures caused by a strong euro. ering interest rates is the most
Eurozone consumer-price in- powerful way to weaken the
flation in March was mi- euro, and the ECB did just that
nus-0.1%, slightly higher than last month. Mr. Draghi ap-
Continued from page B5 minus-0.2% the previous peared to play down the
in a speech that the strong month, but still well below the chances of further cuts,
euro was contributing to “re- ECB’s medium-term target of though minutes released
newed downside risks” for just below 2%. Thursday showed the ECB’s
growth and inflation. Mr. The recent appreciation in governing council didn’t rule Coconut flower Young green coconut Mature coconut Copra
Mersch said that the bank the euro has come as the dol- them out altogether at that Coconut sugar is Around nine months; Around 12 months; Dried flesh; pressed for
“would not hesitate to act” to lar has fallen, as investors last meeting. produced from the sap, used for coconut virgin coconut oil is coconut oil for use in
boost inflation if necessary. conclude that the Federal Re- “The currency is still an is- or liquid, that comes water. pressed using the fresh everything from lipstick
Soon after, the euro began serve is in no rush to raise in- sue,” said Thuska Maharaj, a from the cut flower of flesh of the coconut. to cookies to biofuel.
to fall. By late November it terest rates. Higher rates tend global strategist at J.P. Mor- the coconut palm. The
was back down to below $1.06. to boost a country’s currency. gan Asset Management. “But sap is boiled and
On Aug. 24 the euro traded But Thursday’s comments the ECB is rightly moving dehydrated to produce
above $1.15 on concerns that also came just as investors be- away from a pure focus on the the sugar.
China would devalue its cur- gin to say that global central currency [in] contrast to last Sources: staff reports Photos from left: iStock; European Pressphoto Agency; iStock; AFP/Getty Images THE WALL STREET JOURNAL.
rency. The following day, Vítor banks, including the ECB, are year.”
Constâncio, vice president of moving away from measures Even so, many investors be-
NUTS
the ECB, said the bank “stands aimed at aggressively weaken- lieve there is only so much And Indonesia, the world’s worst of the El Niño phenome-
ready to use all instruments ing their currencies. euro strength the ECB will tol- top harvester of coconuts, non since 1997-1998 has
available in its mandate” to re- The ECB’s latest package of erate. “I think the chances are hasn’t undertaken a program passed.
spond to material changes in measures, in March, appeared that the ECB has to cut rates to replace old coconut trees The current El Niño has re-
the inflation outlook. to be aimed more at boosting again if euro-dollar exceeds that because of age are seeing duced rainfall in Southeast
ECB President Mario Draghi credit growth than targeting $1.17,” said Andrew Millward, Continued from page B5 less fruit, meaning plantations and Southern Asia, putting
has also previously talked the currency. head of European macro trad- group predicts they will drop are producing less nuts. The stress on coconut palms and
about the deflationary pres- Many economists say lowing at Morgan Stanley. 6.9% to 2.1 million metric tons government is instead focused reducing the amount of fruit
in 2016 from last year. on expanding rice, corn and on the tree.
Fighting Talk “Increase in cost of produc- soybean production. An El Niño occurs when
Speeches by members of the ECB's executive board and moves in the euro/dollar exchange rate tion narrowed down margins, Manufacturers aren’t likely winds in the equatorial Pacific
and the industry players natu- to stampede to coconut-oil slow down or reverse direc-
rally moved towards high-mar- substitutes, analysts say. That tion. That causes waters to
gin [coconut] products,” said is because substituting with, warm over a vast area, which
Maduka Perera, owner of Cey- for example, petroleum-based in turn can upend weather
lon Tropics, a coconut busi- fatty alcohols can disrupt around the world.
Aug. 25, 2015 Oct. 13, 2015 April 7, 2016 ness in Sri Lanka. product formulas and threaten PT Cargill Indonesia,
Vítor Constâncio, vice president Yves Mersch, member of the Peter Praet, ECB chief Meanwhile, supplies will a product’s branding as being which crushes copra into oil,
of the ECB, says the bank stands executive board of the ECB, economist, says additional continue to feel pressure. environmentally friendly. described copra supplies as
ready to use all the instruments says the bank ‘would not stimulus could be launched. The Philippines is still reel- Palm-kernel oil, which is pro- the worst he has seen in 16 or
in its mandate if needed. hesitate to act’ if necessary. ing from the 2013 Superty- duced from the seed of the oil 17 years, largely because of
phoon Haiyan, which damaged palm, may get a boost instead. the high demand for whole co-
or destroyed 44 million coco- James Fry, chairman at conuts.
nut palms—about 15% of its agribusiness analyst firm LMC Cargill is “struggling big
$1.25
trees. It will take at least until International Ltd., sees some time” to get hold of copra,
How many U.S. dollars €1 buys* next year for new trees to relief coming in the fourth said Satria Wardaja, Cargill’s
1.20 bear fruit. quarter of this year, as the communications manager.
1.15 Advertisement INTERNATIONAL INVESTMENT FUNDS

1.10 [ Search by company, category or country at europe.WSJ.com/funds ]
NAV —%RETURN—
1.05 FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR
n Chartered Asset Management Pte Ltd - Tel No: 65-6835-8866
Fax No: 65-6835 8865, Website: www.cam.com.sg, Email: [email protected]
1.00 CAM-GTF Limited OT OT MUS 04/01 USD 290833.62 3.9 -10.9 -6.5
2015 ’16
*5:15 p.m. London time Thursday
Data as shown is for information purposes only. No offer is being made by
Morningstar, Ltd. or this publication. Funds shown aren’t registered with the
For information about listing your funds,
Sources: WSJ Market Data Group (currency); European Central Bank (speeches)
U.S. Securities and Exchange Commission and aren’t available for sale to United
States citizens and/or residents except as noted. Prices are in local currencies.
please contact: Freda Fung tel: +852 2831
Photos: European Pressphoto Agency; Agence France-Presse/Getty Images; Bloomberg News THE WALL STREET JOURNAL. All performance figures are calculated using the most recent prices available. 2504; email: [email protected]
Email: [email protected]
HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard
Bank Dividends Can Be a Danger OVERHEARD ECB Works

To Expand
Investors’ attachment to dividends also fails to pro- Poor Mongolia has had a
Payout Priority
dividends may be doing them
more harm than good, espe-
cially in banking.
Profits and dividends of 90
mote the collective interests
of bank’s shareholders, let
alone the wider public inter-
rough ride of late. Its mining
boom, based on feeding coal
and copper to neighboring
Its Reach
European banks, 2007 to 2014
European investors react est,” he said Thursday. China, has turned into a bust. Investors have plenty of
Retained Cumulative
badly to dividend cuts. But earnings dividends He notes that since 2007, The country’s currency has questions about the Euro-
the chief economist at the European banks have paid plunged and foreign-exchange pean Central Bank’s plan to
Germany
Bank for International Settle- out almost as much in divi- reserves have been depleted. buy corporate bonds. To
ments—the central bankers’ Spain dends as they have kept in It did manage to raise a $500 judge by the account of the
central bank—believes that France retained profits, which add million bond from internation- ECB’s March meeting, re-
banks have been paying out to capital. In France, Italy al markets last week, but at leased Thursday, they aren’t
Other Europe*
too much since the crisis and and Spain, banks have paid an interest rate of nearly 11%. alone.
that this has actually hurt Netherlands out more in dividends than Less than 3½ years ago, it The plan will help the ECB
their ability to lend and thus Italy they have retained in capital. paid 4.125% on a similar bond. lift its overall volume of
make future profits. €0 billion €50 €100
The really silly thing Prime Minister Saikhanbi- bond purchases to €80 bil-
Several European banks about this is that, when leg Chimed, speaking to in- lion ($91 billion) a month
*Austria, Belgium, Finland, Greece, Ireland,
have cut dividends in the Portugal banks retain profits, it is still vestors at a Credit Suisse from €60 billion. The details
past two years and investors Sources: BIS; Bloomberg News (photo) A Deutsche Bank branch shareholders’ money, as long conference in Hong Kong, of the purchases have yet to
have balked. Shares in Banco THE WALL STREET JOURNAL.
in Hamburg as the profits aren’t spent on tried to put a happy face on be unveiled.
Santander dropped 14% in bonuses or executive pay in- the nonmining parts of the Yet some ECB officials
January 2015 when it an- back. Credit Suisse’s stock smaller ones in countries like stead, of course. economy. For instance, he doubt the plan’s ability to af-
nounced a cut; Deutsche suffered only a 1.5% drop last Italy. Investors see returns in boasted of the country’s herd fect the eurozone economy
Bank and Standard Char- October when it announced a It is affecting their ability the form of growing tangible of 54 million livestock, notably and boost private invest-
tered both suffered falls of $6 billion capital raise, but to make new loans or engage book values rather than in sheep, goats, horses, camels ment. The meeting account
about 7% when they an- pledged to keep its dividend. in other activity that could cash returns and, if more and yaks, which graze on the cites concerns that purchases
nounced cuts last autumn; But all this is happening help not only their profits capital helps banks to engage country’s vast steppes. “We would mainly be of bonds
Barclays dropped 8% on its even as many banks are but also the wider economy, more business and make have the most democratic from cash-rich corporations
cut in March. struggling to build the capi- according to Hyun Song Shin, more profits, that can only livestock, because they are whose financing costs are al-
Some banks have raised tal they require, while some the BIS chief economist. be to investors’ benefit. free to go where they want ready very low and whose in-
capital to bolster their bal- are still battling to unload “To the extent that under- Obviously, investors want and eat what they want,” he vestment behavior isn’t con-
ance sheets while promising bad loans or long-term, illiq- capitalized banks perpetuate share-price growth and cash said. That makes for the strained by the cost or
to continue payouts. In other uid exposures from before a weak economy and thereby returns. But being too wed- world’s tastiest organic meat, availability of funding.
words, they have asked in- the crisis that are a drain on keep bank stock prices under ded to dividends in all cir- apparently. Too bad meat isn’t Financing is cheap indeed.
vestors for money so they the business today. That is as pressure, it may even be the cumstances looks like a fool’s as valuable as copper. The Bank of America Merrill
can hand some of it straight true for big banks as for case that paying out large counsel. —Paul J. Davies Lynch euro corporate index
yields just 1% and pharma-
ceuticals company Sanofi re-
Valeant Pharmaceuticals: Stepping Back from the Abyss cently issued a three-year
bond with a zero coupon and
a yield of just 0.05%. But
The road ahead won’t be est-coverage requirements. the outgoing Michael Pear- half of total sales, suffered a growth profile. much of the activity in the
smooth, but Valeant Phar- Creditors aren’t generally son will be found in a “mat- sequential revenue decline in And absent meaningful European market is related
maceuticals International in the business of pushing ter of weeks.” That, along the fourth quarter. That in- new acquisitions, which to borrowers from outside
finally has some breathing debtors into default, of with actually filing audited cludes Valeant’s top-selling won’t be in the cards any- the eurozone, who have ac-
room. course, so these develop- financials, could close the product, the gastrointestinal time soon, Valeant needs to counted for around half of is-
With Wednesday’s agreements aren’t entirely sur- book on months of organiza- drug Xifaxan, and there is rely on its pipeline of new suance this year, according
ment to amend terms with prising. But since the major- tional upheaval and spark reason to worry about some drug candidates to generate to Société Générale.
its loan holders, Valeant has ity of Valeant’s enterprise another rally. products that did grow. growth. Recently, that has As with other monetary
staved off the prospect of value is in its debt, rather Yet the irony for equity For instance, revenue been a problem. Sales for the experiments, the best argu-
default in the near term. than equity, a cleaner debt investors is that big gains from the diabetes drug Glu- women’s libido treatment ment for expanding pur-
Reaching the deal didn’t picture means big gains are will be harder to come by metza grew 62% from the Addyi have been a dud. chases to company bonds is
come without a cost; Valeant in order for the stock. once Valeant gets its house third quarter to $86 million, Taking a potential default that it prevents a worse out-
now has to pay a higher in- Valeant shares are up about in order. After all, there is good for third place on the off the table, even a techni- come, whereby financial con-
terest rate on its $11.6 billion 40% since Monday. good reason to worry about list. But one payer, Express cal one, means there likely ditions tighten through
in loans, as well as a fee. More positive catalysts Valeant’s continuing finan- Scripts Holdings, said in still is upside left for the higher corporate funding
Valeant maintains that it in- seem to be in the cards. Ac- cial performance, thanks to February it would exclude company’s unsecured notes. costs. But it isn’t the silver
tends to file 2015 audited fi- tivist hedge-fund manager increased pushback from in- Glumetza from its list of ap- And equity holders could bullet that will improve the
nancial statements by April William Ackman, who joined surance companies and phar- proved drugs. enjoy more gains from here. economic outlook.
29. Valeant’s board last month, macy-benefits managers. The Bausch & Lomb eye- Until the operational picture The ECB may lead corpo-
But Valeant now has until said Wednesday he is cau- More than half of care unit is a high-quality as- becomes clearer, though, rate borrowers to market. It
May 31 to file. Lenders also tiously optimistic that a new Valeant’s top 30 brands, set, but investors could use those are far from certain. isn’t clear it can make them
have agreed to relax inter- chief executive to succeed which represent more than more information about its —Charley Grant invest. —Richard Barley
MONEY & INVESTING
Argentina Returns to Bonds JPM

quirements on how long it
must be held and has the pos-
sibility of being worth nothing
based on the performances of
Continued from page B5 Mr. Dimon and the bank.
BY JULIE WERNAU has been trying to reach shareholders by divesting all The new features are de-
agreements with various noncore banking-business seg- signed to respond to a share-
After a decade and a half, groups of bondholders since ments. holder proposal last year
KENA BETANCUR/AGENCE FRANCE-PRESSE/GETTY IMAGES
Argentina is heading back to then. President Mauricio The committee would be re- that nearly garnered a major-
the global bond market. Ar- Macri’s administration quired to report back to share- ity in voting against Mr. Di-
gentina is planning to market reached a deal in February holders within 300 days. mon’s pay package.
a $12.5 billion bond offering with a group of holdout U.S. The bank said that wouldn’t The bank also disclosed
next week in the U.S. and U.K. hedge funds led by Elliott be necessary or valuable to that the board updated its pol-
in what would be its first Management Corp. That shareholders, breaking down icy on director age in 2015, be-
global debt sale since the agreement paved the way for details of shareholder commu- yond the previous 72-year-old
country defaulted in 2001. the country’s return to the in- nications that already include retirement rule. J.P. Morgan’s
Argentine officials led by ternational debt markets. strategy discussions. For in- board has two key directors
Finance Secretary Luis Caputo Under that settlement, Ar- stance, J.P. Morgan hosted who passed the threshold: lead
are scheduled to meet with in- gentina has said it would pay more than 90 shareholder independent director Lee Ray-
vestors in New York, Los An- creditors $4.65 billion by April calls and meetings on topics mond, 77, and audit committee
geles and Washington, D.C., 14. But some Argentine offi- including strategy, partici- head Laban Jackson, 73, who
next week, according to a let- cials have indicated this week pated in more than 50 investor is a liaison to regulators
ter reviewed by The Wall that they may not make that meetings, presented at 13 in- around the world. They both
Street Journal on Thursday. Finance Secretary Luis Caputo will meet with investors. deadline, which some analysts vestor conferences and con- offered not to stand for re-
The letter was sent to poten- say could complicate or delay ducted 10 investor trips in the election this year, according to
tial investors by Deutsche gan Chase & Co. and Santan- country’s defaulted debt. the government’s plans to is- U.S., Europe and Asia.
Bank, one of four lead under- der Group. Argentina defaulted on sue the new debt. “The Board and manage-
writers of the bond offering. The government plans to more than $80 billion in 2001, A hearing on that matter is ment do not favor size for its
This is the first year
The other underwriters are use proceeds from the offering the largest sovereign default scheduled for April 13 in New own sake or support or oppose Mr. Dimon is being
HSBC Bank PLC, J.P. Mor- to pay back holders of the at the time. The government York. any strategy on ideological
grounds, but instead analyze
paid in performance
strategy from the perspective share units.
said. Housing markets, especially fering valuing it at between ing unit has signed a deal to buy of serving the Firm’s clients,
Finance in London, are also susceptible,
although less so than commer-
$4 billion and $5 billion, accord-
ing to people familiar with the
Barclays PLC’s wealth- and in-
vestment-management business
customers and communities
and how we believe any par- the proxy.
Watch cial property.
—Art Patnaude
matter.
Should the sale go as
in Singapore and Hong Kong for
$320 million in cash.
ticular strategic initiative will
affect long-term shareholder
“The Board believes that,
while refreshment is an impor-
planned, it would be the largest The purchase price is equiva- value,” according to the proxy. tant consideration in assessing
BNP PARIBAS U.S. bank IPO since Citizens Fi- lent to 1.75% of Barclays’s The proxy also shed light Board composition, the best
nancial Group Inc. went public in wealth assets under manage- on Mr. Dimon’s $27 million interests of the Firm are
IPO Is in the Works a $3 billion offering in 2014. ment in Singapore and Hong pay package for 2015, the served by being able to take
EUROPEAN UNION For Hawaiian Unit —Maureen Farrell Kong. highest among large U.S. bank advantage of all available tal-
French bank BNP Paribas SA The assets under manage- CEOs. ent and the Board should not
Warning on Property is planning an initial public offer- OCBC ment, which total about $18.3 J.P. Morgan’s board said Mr. make determinations with re-
As U.K. Weighs Exit ing of its First Hawaiian Bank
Lender to Acquire billion, will be transferred to Dimon deserved the $7 million gard to membership based
U.K. commercial-real-estate subsidiary as early as June, ac- Bank of Singapore, OCBC’s pri- boost from the prior year, or solely on age,” the proxy said.
values could fall if Britain votes cording to people familiar with A Barclays Business vate-banking unit, the lender 35%, because of strong multi- The bank disclosed that the
to end its European Union mem- the matter. Singapore-based Oversea- said in a statement to the Sing- year results, business simplifi- board amended its bylaws in
bership in June, credit-rating First Hawaiian would seek to Chinese Banking Corp. said apore Exchange. cation efforts and strength- January by adding for a right
firm Standard & Poor’s Corp. raise roughly $1 billion in an of- Thursday that its private-bank- The acquisition will allow ened “control” environment, of proxy access, allowing “eli-
said in a report on Thursday. OCBC to increase its share of among other factors, accord- gible shareholders to include
The U.K. is set to hold a ref- the wealth-management busi- ing to the proxy statement. their nominees for election as
erendum on its relationship with ness in Asian financial centers at “Mr. Dimon has led a multi- directors.”
the EU on June 23. Uncertainty a time when it is seeking to year effort to fortify our con- It was adopted following
leading up to the public vote “is grow in its four key markets: trols, which includes address- “extensive discussions with
likely to have a paralyzing effect Singapore, Malaysia, Indonesia ing issues that resulted in shareholders and reflects their
on investor decisions on U.K. and greater China. supervisory and enforcement expressed desire to have addi-
real-estate purchases,” Marie- OCBC and its counterparts actions,” according to the tional access to the director
Aude Vialle, an analyst at the across Asia are jostling to man- proxy. nomination process.”
credit-rating company, said in a age the growing assets of the Mr. Dimon’s pay package The terms include allowing
statement. region’s wealthy families and en- comprises $20.5 million in a shareholder to nominate up
Exiting the EU “could poten- trepreneurs. performance-related restricted to 20% of the board, at least
tially reverse the significant For its part, Barclays last stock and $5 million in cash, two directors in any event,
boost to real-estate asset values month said it was planning to along with his base salary of and allows up to 20 sharehold-
EDGAR SU/REUTERS
that the U.K., and London in par- exit its Asian wealth business as $1.5 million, according to a ers to group together to reach
ticular, has experienced in recent part of its strategy of shoring January filing. the required threshold.
years,” S&P said in a report. up its sprawling operations and This is the first year Mr. Di- The bank also said it would
Office buildings in London’s concentrating on the units it mon is being paid in perfor- hold its annual shareholder
main financial district, called the deems core. mance share units, a type of meeting in New Orleans on
City, would be worst hit, S&P OCBC is seeking to expand in wealth management in Asia. —Gaurav Raghuvanshi restricted stock that has re- May 17.
ADVERTISEMENT
ENJOY FREE WI-FI* WHEN YOU BOOK DIRECT AT HILTON.COM.

STOP CLICKING AROUND AND START DREAMING.
©2016 Hilton Worldwide. *Must be a Hilton HHonors Member. Terms and Conditions apply. Standard Wi-Fi is free. Premium (if available) has a fee. Not free at properties with a resort charge.
Korean beauty The electric SUV

regimens: goes over the top:
Only for the Dan Neil on
doggedly the Tesla Model
determined X P90D
W3 W8
EATING | DRINKING | STYLE | FASHION | DESIGN | DECORATING | ADVENTURE | TRAVEL | GEAR | GADGETS
© 2016 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Friday - Sunday, April 8 - 10, 2016 | W1
This coconut
cake contains
only 46%
of the sugar
used in a
typical angel
food cake.
Coconut milk
enriches both
batter and glaze
and provides an
alternative source
Added egg yolks of sweetness.
give the cake
moisture that
recipes otherwise
rely on sugar to
provide.
This Is Not a
Sugar Bomb
VICTOR PRADO FOR THE WALL STREET JOURNAL, FOOD STYLING BY JAMIE KIMM, PROP STYLING BY NIDIA CUEVA
Life without dessert? Unthinkable.

These recipes deliver all the flavor but significantly
less of the sweet stuff. You won’t miss it
first time, the new federal dietary

BY JANE BLACK
guidelines set a limit for added sug-
W
ars—those added to foods or drinks
HAT’S A SWEET when they’re processed or prepared, as
tooth to do? Sugar opposed to the naturally occurring sug-
has become the new ars in, say, fruits and dairy products—
demonized ingredi- and recommended they make up no
ent du jour. And more than 10% of daily calories. A Reu-
while I’m as interested in healthy(ish) ters/Ipsos poll conducted soon after
eating as the next person, for me, the new rules were announced revealed
dessert is not negotiable. that 58% of Americans try to limit
Millions of Americans are striving to the amount of sugar they consume—
cut back on sugar. In January, for the Please turn to page W2
W2 | Friday - Sunday, April 8 - 10, 2016 THE WALL STREET JOURNAL.
OFF DUTY
HOW SWEET IT IS TO EAT LESS SUGAR

Continued from page W1 Coconut Chiffon Cake with
a greater number than those who shun Coconut Glaze
calories, sodium, fat, cholesterol or This cake uses less than half the sugar of a
carbohydrates. traditional angel food cake and is moist and,
To meet the federal target, the aver- thanks to a generous seven eggs, decadent to
age American needs to trim sugar in- boot. The cake can be stored in an airtight
take by about a third. The game is on container at room temperature up to two days.
to figure out how to bake delicious ACTIVE TIME: 25 minutes TOTAL TIME:
sweets with less sugar. 11/4 hours MAKES: 1 cake
Joanne Chang, owner of Flour Bak-
ery in Boston, said that sugar’s often Special equipment: a 10-inch tube pan with
a safety net as much as a sweetener, a removable bottom
helping to keep cakes moist, promote
browning and prolong shelf life. A solid For the cake:
recipe will cultivate those qualities 2 cups sifted cake flour
even with a reduced sugar content. Her 2/
3 cup granulated sugar
book “Baking with Less Sugar,” pub- 1 tablespoon baking powder

lished last year, includes a coconut 1 teaspoon kosher salt
chiffon cake that slashes the sugar in 1 cup shredded unsweetened coconut
her usual recipe by 46%. The low-sugar 1 cup full-fat coconut milk
version’s become so popular Ms. Chang 1/
2 cup vegetable oil
features it as a special on the menu at 7 large eggs, separated

both Easter and Christmas. 1 tablespoon vanilla extract
Still, sometimes you really can’t For the glaze:
monkey with the sugar content. “When ½ cup confectioners’ sugar
you cream butter and sugar together, 2 tablespoons coconut milk
the sharp little crystals create pockets 2 tablespoons shredded unsweetened
that fill the batter with air,” said coconut, plus more for garnish
Shauna Sever, author of “Real Sweet,”
a collection of recipes made with less- 1. Place rack in center of oven. Preheat oven to
refined sweeteners. “That’s what cre- 350 degrees. In a large bowl, stir together
ates a light fluffy texture.” And that cake flour, 1/3 cup granulated sugar, baking
makes a big difference to the consis- powder, salt and coconut until combined.
tency of the finished cake or cookie. Give coconut milk a good stir. In a bowl, whisk
In contrast, “with a muffin or a quick together coconut milk with vegetable oil, egg
bread, there’s some other leavener to yolks and vanilla.
do the work.” Sugar also lowers the 2. Using an electric mixer fitted with whisk at-
freezing temperature of ice creams and tachment, beat egg whites on medium speed
sorbets and pre- until frothy, 1-2 minutes. Slowly add remaining
vents them from sugar to egg whites. Continue to whisk until
SWEET freezing solid. egg whites are a bit glossy and hold a soft
STRATEGIES Alternatives to peak when you raise whisk, 2-3 minutes more.
FOR LOW- sugar—agave nectar, 3. Make a well in center of dry ingredients,
SUGAR BAKING honey, maple syrup, then pour coconut-milk mixture into well.
molasses, coconut Strawberry Cream Cheese Fool and simmer until juice reduces to ¾ cup, Use a rubber spatula to stir until well com-
Add finely sugar—are also in Fool is a classic English dessert that pairs stewed 15-20 minutes. Keep an eye on pan to make bined. Add a few large spoonfuls of beaten
chopped dried fruit vogue because they fruit with custard. This Americanized version sure juice doesn’t burn. (You may need to egg whites to batter and fold in using a rubber
to a batter to tend to be less pro- is kind of like a cheesecake filling studded with decrease heat as syrup reduces and thickens.) spatula. Add remaining egg whites and fold
boost sweetness. cessed than white strawberries. Reduced apple-juice concentrate Remove from heat and refrigerate until cool in gently until well combined.
sugar, and processed substitutes for white sugar. to the touch. 4. Use a rubber spatula to scrape batter into
Increase the foods are right up TOTAL TIME: 25 minutes SERVES: 8-10 2. Use an electric mixer with whisk attachment a 10-inch ungreased tube pan with a remov-
amount of sweet there with sugar at on medium speed to whip together cream able bottom. Bake cake until it is pale golden
spices, such as the top of the taboo 1 (12-ounce can) frozen apple juice cheese and ½ cup cooled apple syrup. (Reserve and springs back when you poke it at the
cinnamon and list these days. concentrate remaining syrup for another use.) Mix until light center, 35-45 minutes. Remove from oven and
vanilla. These Cooks argue, too, 8 ounces cream cheese, at room and fluffy, 2-3 minutes. let cool in pan, upside down, on a wire rack
flavors suggest that they add more temperature 3. Add crème fraîche to cream cheese mixture supported by the inner tube. When cake is
sweetness so you flavor. In theory, that ½ cup crème fraîche and whip until combined. Slowly drizzle in heavy cool, run a knife around sides to slip off pan,
don’t notice the means you need less 2 cups heavy cream cream and beat on medium speed until thick- then along tube and bottom to loosen cake.
sugar isn’t there. sweetener to make 2 teaspoons vanilla extract ened, 1-2 minutes more. Whisk in vanilla and Quickly invert onto a plate an then flip it
something delicious. ¼ teaspoon kosher salt salt. right-side up onto a serving plate
Substitute Ms. Sever, for exam- 4 cups strawberries, hulled and 4. Fold in strawberries, reserving a few spoon- 5. Make glaze: In a bowl, whisk together
overripe bananas ple, soaks dates in quartered (or halved if berries are fuls for garnish. Portion into bowls or glasses sugar, coconut milk and coconut until some-
or date paste. water then whizzes small) and top with berries. Serve immediately or what thick but still easy to pour.
These have plenty them into a paste to cover with plastic and refrigerate up to 2 hours 6. Spoon glaze over top and sides of cake, al-
of sweetness (and sweeten oat-and- 1. Make apple syrup: Bring apple juice concen- before serving. lowing extra to drip off. Sprinkle with coconut.
nutrients to boot). dried-fruit “break- trate to a boil in a small saucepan over —Adapted from “Baking With Less Sugar” by —Adapted from “Baking with Less Sugar” by
They also provide fast cookies.” medium heat. Decrease heat to medium-low Joanne Chang Joanne Chang
moistness that can Ms. Chang reduces
be lost when you apple juice to a
cut sugar. syrup for her Cherry Walnut 2 cup dark brown sugar
1/
and sugar over medium
luscious strawberry Granola 1 cup pumpkin seeds heat until sugar dissolves.
cream cheese fool. At Eleven Madison Park in 4½ cups old-fashioned Remove from heat.
These flavorful alternative sweeteners New York, diners are sent rolled oats 3. In a large bowl, mix
have plenty to recommend them, but it’s home after the meal with ¼ teaspoon ground walnuts, pumpkin seeds,
worth bearing in mind that the dietary a bag of granola. It’s cinnamon oats, spices and salt.
guideline applies to all sugars, not just delicious, but more like ¼ teaspoon ground Pour oil-sugar mixture
the refined white kind. “Sugars are calo- candy than a wholesome ginger into bowl and mix well.
ries and no nutrients,” said Marion Nes- breakfast. This version ¼ teaspoon ground 4. Spread mixture over
tle, a professor of nutrition at New York was inspired by that cardamom a parchment-paper-lined
University. “It all works the same way restaurant’s parting gift ¾ teaspoon salt rimmed baking sheet. Bake
and everyone would be healthier eating but uses less than half 1 cup dried cherries until lightly golden and dry,
less of it.” the sweeteners. It’s still about 30 minutes.
Indeed, I’ve wondered if the most addictively tasty. 1. Preheat oven to 325 5. Remove from oven
sensible tactic is simply to go on the ACTIVE TIME: 15 minutes degrees. Place walnuts on and let cool slightly. Mix
ever-unpopular eat-less-dessert diet. TOTAL TIME: 45 minutes a baking sheet and toast in cherries so they are
But after trying out the recipes at MAKES: 6½ cups until fragrant but evenly distributed. Granola
right, I’m relieved to know it won’t not browned, about 8 will keep in an airtight
have to come to that. If low-sugar 1 cup walnuts, chopped minutes. Let cool slightly. container up to two weeks.
sweets can taste this good, I’ll take 1/
3 cup olive oil 2. In a small saucepan —Adapted from Eleven
those and eat them, too. 1/
3 cup maple syrup heat olive oil, maple syrup Madison Park
Breakfast Cookies Tightly cover with plastic wrap. Let sit

Dates, soaked in hot water and until dates are soft and mushy, 10-15
whizzed in the food processor, minutes. Spoon dates into bowl of a
substitute for sugar in these cookies food processor, reserving soaking
that are great with morning coffee or liquid. Purée dates until mixture is
afternoon tea. The recipe makes a light and texture is like apple butter.
little more date paste than you If too stiff or dry, add a tablespoon or
need; it’s hard to whip up a tiny batch. two of soaking water.
Mix the leftovers into plain yogurt 2. In a food processor, process ¾ cup
or a yogurt smoothie with bananas oats to a powdery consistency.
VICTOR PRADO FOR THE WALL STREET JOURNAL, FOOD STYLING BY JAMIE KIMM, PROP STYLING BY NIDIA CUEVA
and apple juice. Transfer oat flour to a large bowl. Add

ACTIVE TIME: 15 minutes remaining oats, coconut, cinnamon,
TOTAL TIME: 1 1/4 hours baking powder, salt and baking soda
MAKES: 9 (3-inch) cookies to bowl and whisk to combine.
3. In a food processor, blend 1/3 cup
4 ounces Medjool dates, pitted date paste, oil, maple syrup, vanilla
(7-8 dates) and egg until slightly aerated, about
5 ounces boiling water 1 minute. Scrape wet ingredients into
2 cups old-fashioned rolled oats dry, stirring until dough is moist.
¼ cup unsweetened shredded Stir in dried fruit. Let dough rest
coconut 10 minutes to soak up liquid.
½ teaspoon ground cinnamon 4. Use a ¼-cup measure to scoop
½ teaspoon baking powder out nine balls of dough onto a
½ teaspoon fine sea salt parchment-paper-lined baking sheet
¼ teaspoon baking soda or silicone baking mat. Use your
1/3 cup coconut oil fingertips to flatten each cookie to
¼ cup maple syrup ½-inch thickness; the cookies will not
½ teaspoon vanilla extract spread much during baking.
1 large egg 5. Bake until golden, about 30
½ cup chopped dried fruit, minutes. Remove from oven and let
such as raisins, cranberries or cookies cool on baking sheet 5
apricots minutes, then transfer to a wire rack.
Cookies will keep in an airtight
1. Preheat oven to 350 degrees. Make container up to 3 days.
date paste: Place dates in a small —Adapted from “Real Sweet” by
bowl and pour boiling water over top. Shauna Sever
THE WALL STREET JOURNAL. Friday - Sunday, April 8 - 10, 2016 | W3
OFF DUTY
You’ve Got Snail

Willing to commit to a celebrated, if wearying, 10-step beauty regimen? From South Korea come peculiar
peel-off masks and creams with weird ingredients that promise a spectacularly dewy complexion
BY DANA WOOD
GLOBALLY
I
F SNAIL CREAM and sheet
masks are already part of
your beauty routine, con-
GORGEOUS
gratulations: You’re offi-
cially on the cutting edge Let’s face it: We’re often suckers
of beauty. Now please step aside for youth-in-a-bottle promises,
while the other 99% of us catch up especially those that feel exotic.
to the K-Beauty trend. Here, a few foreign-born beauty
K-Beauty—the umbrella term crazes we fell for over the years.
for all South Korean imports in the
skin care, makeup and bath-and- 1970s THAILAND // Four-
body categories—has been attract- Handed Massage Like skating
ing fans in the U.S. Over the last partners at the Win-
18 months, it’s cultivated a certain ter Olympics, two
gentle, nature-meets-technology massage thera-
ethos. Boosting its appeal is pack- pists work
aging that comes with poppy in synchrony
colors, nonsensical names like up and down
Tonymoly and bottles whimsically your body.
shaped like pandas and cracked This ’70s off-
hard-boiled eggs. shoot of a millen-
Even more hyped than the prod- nia-old deep-kneading technique
ucts themselves, however, is the lets partakers Zen out.
ultra-elaborate K-Beauty skin-care
regimen espoused by popular web- 1999 INDIA // Ayurvedic Skin
sites like Soko Glam and Peach & Care Targeting enlightened types
Lily, both of which are run by Ko- who are dialed-in to their dosha,
rean Americans. Incorporating up ayurvedic skin care got a super-
to 10 (and sometimes more) steps, model assist from Christy Turl-
the typical regimen kicks off with ington, who co-partnered on the
a “dual cleansing” ritual (via oil- Sundari beauty line in the late
and water-based products), winds ’90s. The multi-step regimen
its way through a series of sheet rooted in ancient Hindu healing
masks, essences, serums and rich has fans who feel “balance” is
moisturizers, and wraps up with the key to beauty, even if it takes
SPF 35 sunscreen. At night, you an hour a day to achieve.
swap out the sunscreen for a thick,
gloppy “sleep cream.” 2004 FRANCE // Le Slimming
Many of these beautifiers are Within six months of its publi-
laced with outré ingredients such litany of assaults, which may range ology standpoint,” he said. “But K-Beauty’s most effective contribu- cation, Mireille Guiliano’s diet-
as snail mucin, culled from the from hormonal shifts to wrinkle- the Koreans don’t own the high- tion to the world of skin care book juggernaut, “French
gooey substance snails leave in inducing UV rays to the dehydrat- way on this; most of my patients because they deliver a saturated Women Don’t Get Fat,” was in
their wake and said to boost cell ing effects of alcohol. are up to at least four steps, in- dose of hydration to dry skin. its 20th
regeneration; bee venom (an anti- Unsurprisingly, some dermatol- cluding a daily peel and a serum.” They’re an easy add-on and come printing and
inflammatory “faux-tox” alleged ogists applaud this skin obsession: Freelance business consultant in a single-dose package (as low had sold a
to relax facial muscles); moisturiz- There’s a decided upside to both Soojin Min—a longtime fan of as $2) or 5-packs (around $20). million-plus
ing starfish extract; and firming- Estée Lauder, Chantecaille and Another smart, albeit pricier, copies. De-
and-tightening pig collagen. “For Kiehl’s skin care—recently added approach is to follow one of Peach spite its
years, Korean women have focused products from Korean imports & Lily’s well-thought-out “Korean mystique, it
on skin care products rather than Slather on snail mucin Sulwhasoo, AmorePacific and Skincare Routine Kits.” Custom- sums up the
makeup,” said Sarah Jindal, senior cream that feels smooth, Hera to her daily routine and isn’t ized according to skin type (oily, Gallic ap-
innovation and insights analyst put off by the extra labor they normal, dry, etc.), these include proach to
for market research firm Mintel. not oily, on your skin. demand. “I feel they have fewer 10 or more products, at a total staying svelte
“The ultimate goal is to achieve chemicals,” said Ms. Min (a state- cost ranging from $225 to $250. in obvious, Michael Pollan-ish
a complexion that has a dewy, ment for which there’s no sup- If that’s too much of a financial terms: Eat real food. Small por-
glowing finish, one that doesn’t expanding a regimen beyond the porting research). The Seoul na- commitment, start small by sam- tions. No snacking.
need concealers and foundations basics (cleansing, moisturizing) tive, who splits her time between pling a nightly snail-mucin cream.
ISTOCK (OIL, MASSAGE); F. MARTIN RAMIN/THE WALL STREET JOURNAL (7); ILLUSTRATION BY LAUREN ROLWING
to hide it.” and addressing specific issues homes in Hong Kong and Bronx- Don’t be squeamish: The delicately 2006 MOROCCO // Argan Oil
Each complexion, the reasoning like fine lines, enlarged pores and ville, N.Y., “was happily surprised scented, rich formula feels smooth, Extracted from the kernels of the
goes, needs a customized routine uneven skin tone, said New York to see a K-Beauty section at Sep- not oily, when applied to your argan tree, this allegedly miracu-
that addresses factors such as hor- dermatologist Dennis Gross, who hora when I was in Manhattan.” skin. Bonus: You’re less likely to lous multitasker hit
monal fluctuations and lifestyle nonetheless doesn’t prescribe For the K-curious eager to go scare other people after rubbing it supernova status
choices. The repetitive cleansings, 10-step protocols for his patients. for the glow, the best approach is on than if you pop up wearing one with the 2006 de-
masks and layers of moisturizers A customized skin-care routine to incorporate one additional step of the peel-away Freddy Krueger- but of Morocca-
minister to skin that’s suffered a “makes good sense from a skin-bi- at a time. Sheet masks are perhaps esque masks. noil hair treat-
ment. The “liquid
gold” has driz-
zled its way
GLOW SLICKS // into “arga-
A K-BEAUTY SAMPLER nized” cuticle
oil, lipstick and even flat irons.
2011 GERMANY // BB Cream

Essen-based dermatologist
Christine Schrammek concocted
the first tinted “blemish balm”
in 1967, and after they hit U.S.
shelves in 2011 under the “beauty
balm” banner, BB creams sold
Missha Neogen Real Tonymoly Panda’s Dr.Jart+ Shangpree Black AmorePacific close to $9 million in the first
Cell Renew Snail Flower Cleansing Dream White Liftra Contour Premium Modeling Green Tea Seed year and spawned an alphabet
Cream, $45, Water, $22, Hand Cream, $12, Cream, $60, Rubber Mask, $20, Treatment Oil, $195, of CC and DD creams.
sokoglam.com sokoglam.com sokoglam.com sephora.com peachandlily.com sephora.com
THE HEIGHTS OF FASHION
AN UNLEVEL PLAYING FIELD

One of our favorite spring trends is the playfully punchy graphic shoe.
And there’s a version for everyone, whether you favor flats or a sky-high style
3½”
4”
1”
F. MARTIN RAMIN/THE WALL STREET JOURNAL
Low and Behold Middle Marcher Highest Flyer

Fendi’s whimsical flat with its sculpted, stacked 1-inch heel National costumes from Spanish cities like Salamanca and For these irrepressibly animated 4-inch stilettos, happy
is for those who prefer to stay lower to the ground. Its glossy Segovia have always fascinated designer Manolo Blahnik, shades of leather and suede are cut into serpentine shapes
patent-leather toe cap and sky-blue trim get a cheeky who based the squiggles on these 3½-inch-heel slingbacks that designers Peter Pilotto and Christopher De Vos say
tweak from the wink of the brand’s signature “Bag Bugs” on a photo by José Ortiz-Echagüe of a man in traditional were inspired by the look of scrolled wooden intarsia inlays.
monster eyes. Flats, $700, Fendi, 212-897-2244 dress. Heels, $775, Manolo Blahnik, 212-582-3007 Peter Pilotto Heels, $1,124, matchesfashion.com
OFF DUTY
COPY CAT
Court
Is In
Session
GETTY IMAGES (FERRY); F. MARTIN RAMIN/THE WALL STREET JOURNAL, STYLING BY ANNE CARDENAS (3)
Update Bryan Ferry’s ’70s
tennis-sweater look with
new takes on the iconic knit
BY JACOB GALLAGHER
E
ACH SPRING, with visions of
Björn Borg’s two-handed back-
hand and Andre Agassi’s A-plus
aces in my head, I am drawn
to the moss-green asphalt of
my local tennis court. I uncork a fresh tube
of Wilson’s, step up to the baseline—and
am harshly reminded that my ability to pre-
cisely land a serve ranks up there with Mr.
Magoo’s. I never learn. My only consolation
is knowing that, off the court, I can almost
pass for one of Wimbledon’s immortals
in my classic tennis sweater: V-neck, cable
knit, ultra-preppy and reminiscent in no
way of Mr. Magoo.
Consider suave Bryan Ferry over there
(right) in just such a sweater. I’m unsure SWING TIME Roxy Music’s Bryan Ferry, photographed around 1974, projects plausible athletic skill in a traditional tennis sweater.
whether the Roxy Music frontman can wield
a racket as ably as he can a Stratocaster, the owner of Smart Turnout, a London- “You haven’t seen a pro wear one in Today, designer labels such as Gucci,
but this circa-1974 photo of him confirms based outfitter which recreates the pull- probably 50 years, but tennis sweaters got Dunhill and MP Massimo Piombo have re-
that a tennis sweater strongly implies that overs that tennis and cricket players wore absorbed into popular culture,” said Brian vamped the classic tennis sweater, making
its wearer has a credible backhand. way back when. Davis, the purveyor of Wooden Sleepers, minor adjustments to modernize its retro
This season, like a well-returned volley, Free of logos or labels, those traditional an Americana-focused vintage outfitter in look. The signature cable knit remains but
these iconic V-neck knits, first popular in knits sported striped bands around the col- Red Hook, Brooklyn. “There’s always a de- is rendered in lighter yarns such as silk
the 1930s, are making a strong comeback. lar and cuffs, an indication of the club or mand for that Brooks Brothers or old made- and cotton blends for a featherweight feel.
Back in the Depression, when club rules school to which the wearer belonged—blue in-France Lacoste tennis sweater, especially Better still, that once-blocky silhouette
mandated all-white clothing, the thick wool for Yale, orange and black for Princeton, in the spring and summer.” These vintage
knits were a necessity for chilly days; they and so on. Over time, the all-white court knits tend to have a looser, squared-off
kept athletes warm, yet the loose, cabled mandate loosened (think of Rafael Nadal’s fit that isn’t for everyone, said Mr. Davis.
weave allowed for a full range of motion. lime green and yolk-yellow outfits in recent Mr. Turner of Smart Turnout noted that his Without plunging cheesily, the
“You needed to move in them, so they years), and the tennis sweater became brand’s “thick, chunky re-creations tend to new tennis sweater’s V dips
couldn’t be tight fitting,” said Philip Turner, more of a player off, versus on, the courts. come up oversized on people.”
far enough to show off a crisp
button-down or polo shirt
Cricket Sweater, $300,
smartturnout.com (no bare chests please, guys).
is nicely fitted now and the V, without

plunging cheesily, dips far enough to show
off a button-down or polo shirt (no bare
chests please, guys). These tweaks give
the classic a smart style advantage over
sweatshirts and less pedigree’d pullovers
this season.
Mr. Davis sees the potential to take the
tennis sweater even further. “I would like
to see a brand like Kapital, RRL or even
Kanye West deconstruct the design of it,”
he said, stripping away its prep-school
propriety so it looks more modern. While
designers toed the line by tweaking the
fabric and colors in their spring versions,
Sweater, $770, Gucci, Raf Simons showed oversized tennis
212-826-2600 sweaters for fall, with torn V-neck collars
Sweater, $450, and frayed hems that give them an edgier
dunhill.com advantage. In tennis parlance, the Belgian
designer aced it.
POINTS OF DISTINCTION
NOT YOUR AVERAGE

JEAN JACKET
If you want to stand out—subtly—from the pack,
Levi’s 1953 Type II Jacket fits the bill, thanks
to design details rooted in its proletarian past LOW-
SLUNG POCKETS
Workers could access
BY DALE HRABI these without cramping
their arms. The higher,
SOME OF THE saddest pleats that inexplicably bor- smaller, style-driven ones TUCKS
words in the English lan- der its button placket—de- on Levi’s modern jack- IN THE BACK
guage are “ordinary,” “ge- tails that, according to ets are comparably These were designed to
neric” and “Relaxed-Fit Kha- Paul O’Neill, head of design impractical. give men more freedom
kis.” Unwilling to blend at Levi’s Vintage Clothing, of movement “because
completely into the Gap-clad relate to its origin as work- they were souping up their
crowd, I sporadically seek wear. When Levi’s originally hot rods—or mining,”
out clothing with subtle produced jackets, as early said Paul O’Neill
design details that will set as the 1880s, they were “for of Levi’s.
me, infinitesimally, apart. miners, cowboys, steelwork-
I’ve made some embarrass- ers,” said Mr. O’Neill. “It be-
F. MARTIN RAMIN/THE WALL STREET JOURNAL, STYLING BY ANNE CARDENAS
ing buys: overwrought G- came less about a function-

Star Raw trousers with but- ing jacket as you got into
tons in perverse places; a the 1960s.”
sweatshirt depicting a wise This classic was replaced
old owl with a unicorn horn. by the 1961 Type III Jacket,
But I’ve also scored some which did away with the
winners, most recently the eccentricities in favor of a PLEATS
1953 Type II Jacket (right) more tailored fit, copper-col- Levi’s historians
from Levi’s Vintage Cloth- ored buttons and the pointed are puzzled by these.
ing, the division of the com- pocket flaps that are a One theory is that work-
pany that reproduces finds Levi’s trademark. “It became ing men could unstitch
from the Levi’s archives. recreational wear,” said Mr. them come fall for a
Ironically, I discovered O’Neill. “Half of Woodstock looser fit accommodat-
this resoundingly American was wearing the Type III.” ing heavy sweaters
jacket in a Levi’s store near My jacket, originally underneath.
Carnaby Street in London. issued in 1953, cost $4.35
I was promptly taken with back then, one detail that is
its low-set pockets and the not intact. $385, levi.com
OFF DUTY
1. Looking out from the Bloch Building
at the Nelson-Atkins Museum of Art.
JOURNAL CONCIERGE
An Insider’s Guide
Kansas City
6. A Paper Plane cocktail at Bar Rosso. 2. Mutual Musicians Foundation.
In this center of Americana, the locals hold barbecue,

jazz and even jeans to a much higher standard
IT WOULD BE EASY to typecast Kansas City, sas City is as “Americana” as it gets, but it
Mo., as the most bread-and-butter metropolis throws visitors plenty of curveballs, too. The
in the country, the Heartland personified, 1930s Nelson-Atkins Museum, for one, is
its very soul wrapped in butcher paper. Af- known for its collection of Chinese paint-
ter all, it’s the birthplace of Charlie ings, as well as the 17-foot-tall shuttle-
Parker-style jazz, Hallmark Cards cocks on its lawn. The West Bottoms
and Walt Disney animation, and a ’hood, formerly stockyards, is now
mecca of low-and-slow barbecue. In home to suave eateries and shops,
downtown K.C., streets flicker with while the Power & Light district
vintage neon signs and old ware- is a newly throbbing music hub,
houses hulk on the corners, evoking and in the arty Crossroads area indie
Edward Hopper’s stark paintings, while the bands perform beside train tracks. With
old-guard residential neighborhoods are full 240 neighborhoods, not counting those just
of Prairie School-style manses built by the across the Kansas state line, a little local
captains of cattle and railroads. So, yes, Kan- guidance goes a long way. —Steve Garbarino
5. Baldwin KC clothing shop. 4. Ribs and other offerings at Gates Bar-B-Q. 3. Oak Street Mansion’s Cuban room.
CHRIS MULLINS FOR THE WALL STREET JOURNAL
THE TRENDSETTER THE BLUES MAN THE RESTAURATEURS THE CURATOR

Andy Spade Matt Baldwin Colby and Julian Zugazagoitia
co-founder, Partners & owner/designer of Megan Garrelts director, The Nelson-
Spade and Sleepy Jones; Kansas City-based Baldwin Chef-owners of Atkins Museum of Art
married to fashion designer Denim & Collection Bluestem, in Kansas
and Kansas City native City; and Rye, in
Kate Spade Leawood, Kansas
SHELL GAME // The Peanut. This standout AWESOME SAUCE // Gates Bar-B-Q. (4) RARE FIND // The Majestic Restaurant. In the SOUND TRACKS // Knuckleheads Saloon.
corner bar has been around since 1933. There Simply the best ribs in Kansas City. The spicy heart of downtown, this iconic steakhouse looks This fascinating music club has a great outdoor
are peanut bowls on the bar and peanut shells ketchup-vinegar sauce is a hometown favorite. like it’s from the Prohibition era, with high tin stage and bar by the train tracks. The rumble
on the floor, and it’s known for triple BLTs, Buf- Six locations, gatesbbq.com ceilings and old mosaic floor tiles. The KC strip of passing trains only adds to the sound of the
falo wings and homemade blue cheese dressing. and porterhouse are amazing. Start with the arti- horns. 2715 Rochester St., knuckleheadskc.com
5000 Main St. (original location), peanutkc.com CHIC EATS // Genessee Royale Bistro. This choke dip. 931 Broadway Blvd., majestickc.com
fashionable cafe in the Stockyards District draws ARTFUL LODGER // Oak Street Mansion. (3)
KC ROYALTY // Arthur Bryant’s Barbecue. the city’s creative types for lunch or for a late- SHORE LEAVE // The Ship. This sexy 2-year- An art-centric hotel housed in a stately old red-
Calvin Trillin called this the world’s best restaurant, afternoon glass of wine. 1531 Genessee St., old dive bar and live-music club, off an alley in brick manse. The rooms have different themes—
not to mention its best barbecue pit. 1727 Brook- genesseeroyale.com the West Bottoms district, was restored from a Cuban, Impressionists—and pop with color. From
lyn Ave. (original location), arthurbryantsbbq.com 1930s nightclub. 1217 Union Ave., theshipkc.com about $150 a night, oakstreetmansion.com
ART ATTACK // Haw Contemporary. This
SWING SHIFT // Mutual Musicians Founda- influential West Bottoms gallery—owned by YEEHAW JUNCTION // Harry’s Country SCENIC SCENE // Bar Rosso at Hotel
tion International. (2) After midnight on week- Bill Haw, Jr., a pioneer in the city’s art scene Club. Honky-tonk-loving dudes in chinos fre- Sorella (6) The bar and bistro in this new hotel
ends, legendary jazz musicians getting off gigs and the son of a prominent cattle rancher and quent this live-music spot. Get the “Sea Hogs,” is housed in an elegant rotunda. It’s become
around town come for jam sessions at this 1930s developer—primarily shows works from local bacon-wrapped shrimp with horseradish sauce. a local hot spot during happy hour and after
landmark. 1823 Highland Ave., mutualmusicians- and regional artists, including abstract painter 112 Missouri Ave., harryscountryclub.com the hotel’s black-tie events. 901 W. 48th Place,
foundation.org Eric Sall. 1600 Liberty St., hawcontemporary.com hotelsorella-countryclubplaza.com
TO DYE FOR // Baldwin KC. (5) One of the
FRY FOR ALL // Stroud’s Fairway. Kate and FOR KICKS // Sporting K.C. America’s first flagship stores for the Kansas City-born denim DIG THIS // Urban Mining. A huge midcentury
I always go to Stroud’s, just across the state line, European-style soccer club and stadium, it’s label that cuts American-made and finely tai- furnishings and architectural-salvage market,
for their famous pan-fried chicken. Kate’s been making K.C. the soccer capital of the U.S. Chil- lored staples. Every style-savvy guy in K.C. has Urban Mining is open only the first Friday, Satur-
going since she was a kid. 4200 Shawnee Mission dren’s Mercy Park, 1 Sporting Way, Kansas City, to own a pair of these jeans. 340 W. 47th St., day and Sunday of each month. 3923 Main St.,
Parkway, Kan., fairway.stroudsrestaurant.com Kan., sportingkc.com baldwin.co urbanminingvintage.com
Plus, Don’t Miss…Port Fonda A former food-truck phenom and James Beard Foundation semifinalist, chef Patrick Ryan serves excellent, innovative Mexican food. 4141 Pennsylvania Ave. (original location),
portfonda.com // Hi Hat Coffee Set inside a former filling station, this is the coolest little java hut around. 5012 State Line Rd., Westwood Hills, Kan. // Joe’s Kansas City Bar-B-Que You’ll have to wait in long
lines at this temple to all things smoked, but it’s worth it. The owners have won countless barbecue pit competitions. 3002 W. 47th Ave., Kansas City, Kan. (original location), joeskc.com // The Bloch Building
of the Nelson-Atkins Museum of Art (1) Opened in 2007, this glass-walled architectural stunner houses rotating shows and permanent photo exhibits. At night, it’s lit up like a UFO. nelson-atkins.org
OFF DUTY
LOVE STORY
A Jasperware Jones
A grandma’s unglazed stoneware seeds a collector’s passion
ing to Tricia Foley, author of for a cobalt-blue service) and
BY MIEKE TEN HAVE
“At Home with Wedgwood,” haggled over cake plates (un-
M
“People were bringing back der $50 each) with toothless
VICTOR PRADO FOR THE WALL STREET JOURNAL (TOP, PLATE, JARS); F. MARTIN RAMIN/THE WALL STREET JOURNAL (JUG, CUP & SAUCER)
Y DESIGN artifacts from Greece and Italy. Mainers at flea markets.
taste might Rather than plunder, Josiah Though I’ve bought non-Wedg-
well be Wedgwood replicated.” Intri- wood jasperware, I find the
termed cate molds depicted Greek and original producer’s the most
granny chic. Roman myths and muses, and refined and pleasing. And
It includes a penchant for the Wedgwood factory (and, I don’t buy online, because it
chintz, toile and the Wedgwood later, other English and Euro- lacks the thrill of the chase.
company’s jasperware. My pean companies) produced on In terms of value and his-
obsession with the matte ce- a mass scale, which is why you tory, “the less writing on the
ramic and its usually white re- can find jasperware in fine, bottom, the older it is,” said
liefs dates to childhood visits and not so fine, antique stores Alan Kaplan of New York
with my grandmother in across the U.S. dealer Leo Kaplan. Number
Boston. In the corners of her and letter codes began show-
federal-style dining room stood ing up in the 1860s and coun-
scrolled-shell cupboards filled try-of-origin markings around
with Meissen-china figurines, The ceramics looked 1900. Rare tri- and multicolor
Limoges snuff boxes and Necco like talismans left pieces can be valued at many
wafer-hued jasperware that thousands of dollars. But
looked like talismans left by by the Easter Bunny. Wedgwood still produces jas-
the Easter Bunny: urns, cameos perware, and for a small sum
and tea sets in dusty rose, one can begin collecting.
lilac and celadon. When my grandmother My china cabinet may be
Thus began my affair with died, the collection amassed a dead ringer for a nonagenar-
the unglazed stoneware, named with my mother in mind came ian’s, but nothing is too pre-
for its resemblance to the to me instead. “You’ve always cious to use. For a recent din-
tough mineral jasper, that had fancy-old-lady taste,” ner party I used jasperware
Josiah Wedgwood invented in quipped my mother, whose ce- creamers to hold tea lights and MATTE GIRL The
the 1770s, capitalizing on the ramic preferences incline to- de-lidded sugar bowls as author’s favorite
European fascination with Neo- ward naive American luster- vases. My girlfriend studied inherited jasperware,
classicism that erupted after ware. Since then, I’ve plucked my tablescape and dubbed its notable for its
archaeologists unearthed Pom- tea sets from shabby antique- style “granny gone rogue.” tricolor design.
peii and Herculaneum. Accord- shop vitrines in Arizona ($250 Fine by me.
RELIEF PITCHERS // AND GINGER JARS AND TEACUPS TO AUGMENT, OR LAUNCH, A COLLECTION Jasperware Dancing Hours
Teacup (3.5 inches in diam-
eter) and Saucer (5 inches
in diameter), $1,450 for
6 assorted, Wedgwood,
Wedgwood Wedgwood Wedgwood Wedgwood 877-720-3486
Jasperware Crimson Jasperware Tricolor
Cake Plate, Jasperware Ginger Jar, Jasperware
about 9½ Covered Jug, 4 inches Tobacco Jar from
inches in di- 8½ inches tall, tall, $56, My Endless Attic,
ameter, $60, $3,450, rauan- Replacements, 4½ inches tall,
Replacements, tiques.com 800-737-5223 $75, rubylane.com
800-737-5223
The Family Album

An LP collection offers more than classic-rock schlock. It can also tell children who their parents really are
BY CHRIS KORNELIS And if Thomas ever asks to

borrow my copy of “Sgt. Pepper’s
I
Lonely Hearts Club Band,” it will
N THE AGE of Spotify, it’s give me a chance to tell him that it’s
tough to justify keeping the as much his as mine: We found it
massive collection of vinyl together in the bargain bin of a local
records that I’ve acquired record store when he was just a few
from my parents and my months old. Record shopping was
decadelong career as a music writer one of the first activities the two of
(a profession that affords little fi- us shared, Thomas strapped to my
nancial security but plenty of free chest in a Baby Bjorn.
albums). This is especially true My kids are already enjoying the
when the room that houses all of benefits of my hoarding. Recently,
my LPs also serves as a home of- Thomas made his first discovery:
fice, guest room and a play area for “Daddy! The boy’s naked!” he ex-
my two young children, Thomas claimed. “He’s not wearing a swim-
and Lucy. ming suit!”
I’m not an audiophile or vinyl Among the stacks and shelves of
fanatic. Every time my growing vinyl and CDs, Thomas had
family has moved, I’ve been discovered my copy of Nirvana’s
tempted to give away my LPs. But “Nevermind.” He pleaded for me to
as I get older, wiser and more sen- put it on. As he listened to the era-
timental, I’ve decided to hold on to defining riff of “Smells Like Teen
those records for the same reason Spirit” for the first time, his eyes lit
I’m glad my parents did: Thumbing up and he began to bounce.
through your parents’ LP collec- Then he began to flail. I took his
tion isn’t just an opportunity to hands and we formed our first fa-
get turned on to some great music; ther-son mosh pit, which culmi-
it’s a chance to learn about your nated in my swinging him by an
folks as people. Rosemary and Thyme” still flaunts copy of “The Doors,” I’ll tell them them asking now, “Dad, what’s a arm and leg and flinging him onto
Sure, my parents’ cache of LPs the index card of the library from that, although I can’t stand the band Virgin Megastore?”) That album the futon.
was my entree to a lifelong love which he borrowed it decades ago. anymore, when I was 15, I had a was my introduction not just to Col- Not everyone has a record collec-
of the Beatles, Stevie Wonder and (He maintains that he intends to re- part-time job sweeping floors at a trane but to his longtime drummer tion to document life’s milestones.
Creedence. But those records were turn it.) I inherited his tendency to record store owned by a guy who Elvin Jones. (I was a budding drum- But when you’re creating space for
also a trail of biographical bread- ignore due dates; when he and I was obsessed with Jim Morrison. As mer myself.) your kids, you deserve a pass for
crumbs that my parents left for me ended up on the most-wanted list at the youngest employee by at least a If my children develop a taste for not always making the most rational
to discover. just about every video-rental store generation, I was the only one there swing, they might wonder why my choices. There’s nothing wrong with
AGATA NOWICKA; F. MARTIN RAMIN/THE WALL STREET JOURNAL, STYLING BY ANNE CARDENAS (PYLE)
Once, for instance, I pointed to in town in the mid-90s, that index who, by the mid-90s, was still ex- copy of “Basie Straight Ahead” is holding on to a few things that give
my mother’s copy of “Rubber Soul” card made perfect sense. cited to put on “American Pie” and signed by Count Basie’s favorite your child a trail to your past—and
to defend my mop haircut. When One day, my kids will rifle “Sweet Home Alabama.” Sometimes drummer, Harold Jones. I’ll tell a good excuse to mosh.
the tactic worked, I realized mom through the stacks of records and I’d come home with a stack of old them about the time I took a job as
wasn’t always a mom; at one time, CDs that I can’t bear to part with, records in lieu of a paycheck. a counselor at a music camp in Wis- Adapted from Mr. Kornelis’s book
she was a girl who thought the and they’ll find as much of my back My kids will also find the copy of consin so I could spend a week with “Rocking Fatherhood: The Dad-to-
Beatles were dreamy. story as they care to uncover. John Coltrane’s “Crescent” that my this Mr. Jones; it was there that I Be’s Guide to Staying Cool,” avail-
Meanwhile, my dad’s copy of Si- When Thomas and Lucy, ages dad bought for me at Chicago’s Vir- fell in love with another camp coun- able this month from Da Capo
mon & Garfunkel’s “Parsley, Sage, 5 and 1, ask about my neglected gin Megastore in 1996. (I can hear selor whom they know as “Mom.” Press/Lifelong Books.
HOOKED ON PHONO // RECORD PLAYERS FOR KIDS
Musician Jack White has long been a The sound of the Crosley Cruiser Even before my son heard the Pyle
vinyl evangelist, touting the format’s ($100, crosleyradio.com) is a hair PVTT2UOR Retro Belt-Drive
(supposedly) superior sound, so it’s tinnier than the one above, and I Turntable ($70, amazon.com), this
no surprise that his music label had some trouble with its finicky appealingly orange player (available
would offer a relatively inexpensive tone arm, but it has two key fea- in other colors, too) was his favorite.
record player to hook the younger tures going for it: It runs on six AA It has the thinnest sound of the
generation. True to its musician- batteries (instead of Cs that the three, but what 5-year-old
backed pedigree, the Manny’s Manny runs on) and it has a head- can tell the difference?
Children’s Turntable ($90, third- phone jack—ideal for those times Bless his heart for picking
manstore.com) has the best audio when your youngster discovers a new the only model with a
quality of the models shown here. favorite song and plays it incessantly. built-in rechargeable battery. —C.K.
OFF DUTY
RUMBLE SEAT: DAN NEIL
Tesla Model X: Electric Meets Extravagant

LET’S ADDRESS WHAT some
might consider the morally incon- WINGS OF DESIRE The Falcon
sistent status of an all-electric lux- Wing Doors on the Tesla Model
ury SUV costing $135,400. By X P90D Ludicrous are at once
design, the Tesla Model X P90D thoughtfully engineered, largely
Ludicrous (that’s the real name, ap- impractical, and very, very cool.
parently) is meant to be green and
efficient—and well-to-wheel, net-to-
net, EVs are way cleaner than gas-
powered cars. Electric vehicles are
a technical expression of our belief
that the atmosphere is the blue
commons, owned by all. Egalitarian
in impulse, in other words.
But the Model X is also the
rarest sushi of materialism, class
privilege under a blister of tinted
glass, a suede-lined pachinko par-
lor of the soul. Just remember as
you pull up to Nobu in West Holly-
wood and supermodels come run-
ning out to the valet to take a pic-
ture with your Model X with the
doors up: You’re saving the planet.
Here’s the hard part for most
people: It can be both. A feature
of a free society is that some have
more than others; such are the
risks and rewards of capitalism.
This is a given. This is gravity.
But everyone, no matter their life-
styles, can consume less. And,
TESLA (2)
by the power of numbers, a lot of
lesses add up to quite a lot.
So some Hollywood celebrity
downsizes to a Gulfstream IV and at Venice Beach, Calif., while they said he didn’t want the production quoted out of the Old Testament. The price for the “standard”
now she’s Mother Earth? Well, selfied themselves, laughing car to be a dialed-back version of The rich will want the riches. Model X 70S with a 70kWh battery
yes. Consider it a self-imposed madly, sitting in mid-row seats the concept car, which is just the Not to be confused with the is $80,000, which is about $5,000
carbon flat tax. while the doors were up. When all sort of initiative and forward Model 3 compact sedan that de- more than a base Model S—a fact
F. Scott Fitzgerald said the test the doors are open you can look thinking that gets people cashiered buted so boffo this week, the that is academic because Tesla
of a first-rate intelligence is the through the Model X as if it were from General Motors. Model X is a full-size SUV with won’t be building any base Model
ability to hold two opposed ideas a picture window with a Tesla- To aficionados, Mr. Musk’s move dual electric motors front and Xs for some time.
in mind at the same time and still shaped sill and sash. smacked of pride since in over a rear, providing all-wheel drive. The company will instead be
function. It also seems to apply to Would minivan-style doors have century of automotive design, from Although its body structure is al- filling orders for the flagship P90D
the Model X’s famous Falcon Wing been a more sensible technical so- the Mercedes-Benz 300SL Gullwing most entirely aluminum and mag- (“P” for performance). These will
Doors, since they are simultane- lution to a mid-row door opening? to the DeLoreans to Lambos, gull- nesium, our flagship test car come with a face-flapping 713
ously unnecessary and absolutely Infinitely. You could have done wing doors have always looked cool (P90D Ludicrous) was quoting pound-feet of insta-torque from
vital to the entire enterprise; deeply the doors off the Dubonnet Xenia and never really worked. a massive 5,381 pounds, most of it two huge four-pole AC induction
thought-through yet completely easier that the Model X. But the To name a few of the problems: in the floor-mounted battery pack. motors ($35,000) and the famous
spurious; impractical and…well, spell these doors cast—let’s call it ease of entry and exit, weather Four-corner air suspension with “Ludicrous” Drive Mode ($10,000),
more impractical. But you get used emotional engineering—is payoff sealing and wind noise. From five ride-height settings, from off- which essentially permits the bat-
to them, because they are so cool. for some of the shrewdest design a safety standpoint, center-hinged road to highway, is standard. tery to violently eject electrons in
See above re: supermodels. money ever spent. overhead doors cut into the kind of The Model X is a luxury family pursuit of maximum acceleration.
Or retired aerospace engineers. A bit of context: The Falcon rectangular geometry around a door mover, with five-, six- or seven- In Ludicrous Mode, the Model X
Or French tourists. Or the hard- Wing Doors came about because opening that lends it rigidity. passenger seating options, with P90D max output is 532 hp.
core, mainlining petrolheads who Tesla CEO Elon Musk liked them What if it snows overnight? a rear trunk and a frunk (a front That’s the version that Tesla pro-
kept me waiting in the parking lot and wanted them, full stop. He has What if it’s raining? Where do you trunk). The deeply tinted glass vided me, and I want them to know,
put the ski racks and bicycles and I’m on to their game. It is very hard
the Thule roof module full of hik- to find fault with a six-seat SUV
ing gear? that accelerates like a Formula At-
Who cares? Have you seen the Elon Musk has copped to lantic open-wheeler. Jeebus. Stamp
doors open? overreach with the Model the accelerator and it goes off like
Most maddening was creating a sprung mousetrap. Tesla esti-
a dead-stable pivot point for the X. Dude, you’re forgiven. mates 0-60 mph in a Lambo-like 3.2
doors, which rise and fall slowly seconds. While doing so, the Model
on the motorized breeze not like X quietly withdraws everything
falcon wings but more like seagull canopy creates a pretty magical from your pockets and scatters it
wings, with a double fold. The so- space, although (another old les- conveniently under the back seats.
lution required a heroic amount son, relearned) the California sun And then, between 50 and 100
of costly magnesium in the car’s is too bright through the roof mph, it’s goodbye, Charlie. The
dorsal spine. glass. I understand additional tint- P90D Ludicrous operates at an en-
Mr. Musk has copped to over- ing is available. tirely different frame rate than
reach with the Model X. Maybe he The front and mid-row seats are just about anything on the street
tried to do too much, what with mounted on powered pedestals in L.A. It takes a sustainably har-
the Model X’s sensor-rich Autopi- that glide forward as if to a vested baseball bat to Panzer wag-
2016 TESLA MODEL X P90D LUDICROUS lot driver aids; the dancing shut- Strauss waltz, easing access to the ons like Porsche Cayenne Turbo
tle-craft seats; the HEPA air filtra- third row’s two cozy bucket seats. and Range Rover Sport SVR.
tion system with the “Bioweapon The seats’ pedestal mountings al- Around the City of Angels, the
Price, as tested: $135,400 pound-feet of torque Defense Mode” setting; the pan- low passengers more foot room sweet, effortless blurt of our EV
Powertrain: all-electric all-wheel Length/weight: 198.3 inches/5,381 oramic windscreen, a stunning than otherwise. hot-rod tempted me to do, well,
system comprising dual three- pounds soap bubble of a canopy over your All the doors open electrically, questionable things. No yellow light
phase, four-pole AC induction mo- Wheelbase: 116.7 inches head. Dude, you’re forgiven. But which can take some getting used ever turns red for the Model X
tors; liquid-cooled lithium-ion bat- 0-60 mph: 3.2 seconds then again, I’m not a stockholder. to. If you get in and put your right P90D. No hole that opens up in
tery pack (90kWh nominal); on- Towing capacity: 5,000 pounds Practicality for fascination. This foot on the brake, the driver’s door traffic is ever too small or far away.
board charger and supercharger Cargo capacity: 77 cubic feet is the card Mr. Musk continues will swing closed, even if you have Falcon wings? Maybe Icarus.
enabled; permanent all-wheel drive. (total interior storage, six-seat to play to his advantage. This is not yet retrieved your left leg. The But if the Model X flies too close
Horsepower/torque: 532 hp/713 configuration) the part of the Tesla business plan door will gently gnaw on it until to the sun, there’s always more
that might as well have been you take your foot off the brake. window tint.
MY TECH ESSENTIALS
THE PROPERTY Drew: When I want to quickly Drew: We shoot a lot of Vines
BROTHERS take a measurement, I use my

Stanley Laser Distance Mea-
and videos for our fans, so we
use the F&V Z180S Bi-Color
surer. You just put it on the LED Video Light. It’s tiny but
F. MARTIN RAMIN/THE WALL STREET JOURNAL, STYLING BY ANNE CARDENAS (ORGANIZER, MEASURER, VR)
wall, and it shoots a laser and outputs so much light. I can

Jonathan and Drew Scott of HGTV’s instantly tells you the exact dis- change the color temperature to
’Property Brothers’ on paint-picking tance to the other wall within make it look like daytime, night-
a fraction of an inch. time or natural light indoors.
apps and tech survival kits
Jonathan: I use and recommend Drew: I al- Drew: I’m a total organization freak, so I use ClosetMaid [organizing
the Sherwin-Williams ColorSnap ways carry systems] a fair bit. They give you drawers, shelves and hanging units
Visualizer app. If you have what I call my to maximize every square inch of your closet or room. The best part is
a favorite painting, you can “I got your you can mix and match. If at some point you have more long hanging
upload a photo and the app will back” kit, pieces, pop the bracket off the track, move it up and you’re good to go.
pinpoint the colors in it and tell which I keep
you which are in their line. And in a GRID-IT Jonathan: The 3-D room walk-
with their iPad app or website, Organizer. thrus that I’ve seen with the
you can upload The kit has Samsung Gear VR are great.
a picture of every technology connection Drew: At my house, I can operate pretty It’s basically goggles that you
a room, and you could possibly ever need. much everything from my phone. I can be put your Samsung phone into to
it will show I have a charging plug for anywhere in the world and adjust the tem- view 3-D environments. I just
you what your car. I’ve got every type perature, check my security cameras and talk did a demonstration, and it’s like
the walls will of memory card reader. If you to people in the house. I can even turn on the TVs. I use a Crestron you’re standing in a room.
look like in dif- ever need anything, I’ve got system, but there’s also one called Insteon that’s more entry-level and —Edited from an interview by
ferent colors. your back. doesn’t have to be hard-wired. Kelly Michèle Guerotto
MANSION
‘Until you play it, St. Andrews

looks like the sort of real estate you
couldn’t give away.’ —Sam Snead
HOMES | MARKETS | PEOPLE | UPKEEP | VALUES | NEIGHBORHOODS | REDOS | SALES | FIXTURES | BROKERS
© 2016 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Friday - Sunday, April 8 - 10, 2016 | W9
The Golf Homes Issue
SURF, TURF AND 18 HOLES

New luxury golf developments around the Caribbean
shoot for broader appeal, targeting beach lovers and families as well
as golf enthusiasts; a recording studio near the greens.
FOUR SEASONS, NEVIS
FORE SALE At the Four Seasons resort in Nevis, the Robert Trent Jones Jr.-designed golf course climbs toward Nevis Peak before descending to the edge of the Caribbean Sea. A new devel-
opment there called Villas at Pinney’s Beach features luxury villas with prices starting at $3.5 million for a three-bedroom home.
58 years old. “There are monkeys all over the vaulted ceilings and walls of glass that open to a
BY ARIAN CAMPO-FLORES
golf course. The views are stunning.” patio, pool and guest cottage. Interior appoint-
The Buttafuocos currently own a three-bed- ments include white marble countertops, mahog-
WHEN DANIEL BUTTAFUOCO needs a break room villa at the Four Seasons Resort Estates, any doors and Bosch and Thermador kitchen ap-
from his busy legal practice and bitter New York but they’re considering upgrading to a four-bed- pliances.
winters, he and his wife fly to the Caribbean is- room, 3,400-square-foot home in a new Four The Nevis villas are among a handful of new
land of Nevis. There he unwinds with a round of Seasons development called Villas at Pinney’s luxury developments cropping up around the Ca-
golf on a course that climbs up a mountain Beach. ribbean that appeal not only to golf enthusiasts
through lush rain forest before descending to The property, located on the fourth fairway like Mr. Buttafuoco, but to beach-lovers and
the edge of the Caribbean Sea. and just a short walk from the sea, costs $4.2 those who want family-friendly activities. These
“It’s beautiful,” says Mr. Buttafuoco, who is million. It features a contemporary design, with Please turn to page W10
HOUSE
SETTING A MEDITERRANEAN COURSE OF THE DAY
wsj.com/houseoftheday
The Spanish island of Mallorca courts affluent second-home buyers with days of golf and nights of food and wine.
BY J. S. MARCUS
MALLORCA IS MAKING a
KNIGHT FRANK
new bid for Mediterranean-

bound millionaires.
The Spanish island has
long been known for its rug- France
ged landscape, dramatic Two ski chalets
views and yacht-filled har- in the French Alps
bors. Now it courts second-
home buyers, with more
than 20 golf courses and a
thriving artisanal food and
wine scene.
The 2007 opening of the
JAMES RAJOTTE FOR THE WALL STREET JOURNAL (3); NANDO ESTEVA (2, INTERIORS)
Golf Son Gual golf club near

Palma de Mallorca, consid-
DAMON MOSS
ered the island's most chal-

lenging course, helped raise
Mallorca’s profile as a seri-
ous golf destination. The United States
club was founded by German A producer’s island
businessman and golf enthu- pad in Kauai, Hawaii
siast Adam Pamer. Andreas
Pamer, the founder’s son and
Son Gual’s general manager,
says the course’s new pro,
South Africa-born Robert
Baker, has tutored the likes
of President Obama and Mi-
chael Bloomberg.
PETER TJAHJADI
Also esteemed is the Alca-

nada Golf Club near Pollensa,
which has a coastal setting
for its pro course, designed
by architect Robert Trent Indonesia
SWINGING Mallorca’s challenging San Gual golf course, above. Top from left, the master bedroom of the Swarovski family home near Jones Jr. The club was A villa built for
Pollensa, St. Mary’s Cathedral in Palma de Mallorca, a stairway in the Swarovski home and fresh fish in Palma’s Mercat de l’Olivar. Please turn to page W15 tropical living in Bali
THE GOLF HOMES ISSUE
SURF & TURF HOMES WITH 18 HOLES

Continued from page W9 Challenge tournament hosted by
days, beach resorts are wooing Mr. Woods.
buyers with everything from high- Mr. Goldstuck also is helping
end fitness centers to equestrian guide the latest creation being
facilities to water parks for chil- built at Albany: a recording studio
dren, says Neal Sroka, who special- aimed at the numerous musicians
izes in global marketing for resort who own properties at the resort.
properties at Douglas Elliman Real Albany offers an array of resi-
Estate in New York. dences: beachfront villas, lots for
When Mr. Buttafuoco isn’t on custom-built homes and condomin-
the Robert Trent Jones Jr.-de- iums designed by architects such
signed golf course, he says he as Bjarke Ingels that surround a 71-
sometimes heads to the spa for a slip megayacht marina.
massage or haircut. One unit for sale is a six-bed-
His wife loves lounging on the room, 7,800-square-foot condo on
beach and dining at one of several the fifth floor of a building de-
restaurants. And his grandchildren signed by architect Morris Adjmi.
can choose among activities that A reception room in the $24 mil-
include crab hunting and nature lion residence opens to a wrap-
walks. around ipe wood and stone terrace
At Playa Grande on the northern that faces the ocean.
coast of the Dominican Republic, At the Ritz-Carlton resort on
plans for a new complex under Grand Cayman in the Cayman Is-
construction named Amanera Vil- lands, the largest of five new pent-
las call for about 40 homes. They house units in an existing residen-
tial tower is also pitching the
views.
The three-bedroom, 8,100-
These days, beach resorts
MAYAKOBA RESIDENCES
square-foot space, which costs $16.1
are wooing buyers with million, features floor-to-ceiling
windows that fully retract, extend-
everything from high-end ing the living space to a wrap-
fitness centers to around terrace.
Inside, there are two master bed-
equestrian facilities to rooms with motorized draperies, a
water parks for children. movie room with long sofas and MEXICO The 18-hole golf course at Mayakoba resort on the Yucatán Peninsula was designed by Greg Norman. Prices
finishes like light sycamore walls start at $2.5 million for a two-bedroom home at the new Rosewood Residences.
and marble floors.
range from two-bedroom, 2,400- The other four units range from
square-foot residences that start 2,500 square feet to 4,000 square
at $4 million to six-bedroom, feet and start at $3.9 million. The
8,600-square-foot homes that can resort features restaurants like Blue
cost $10 million or more. by chef Eric Ripert, a La Prairie Spa
So far, five have sold, mainly to and a water park for children.
buyers from the U.S. and Canada, For golfers, there is a nine-hole
says Pierre Charalambides, found- course designed by Mr. Norman
ing partner of developer Dolphin that overlooks a canal and a club-
FROM LEFT: DANA HOFF; JULIAN ABRAMS

Capital. house with a Trackman golf simula-
The villas offer views of the Ca- tor.
ribbean and an 18-hole golf course Michael Lagopoulos, a 59-year-
originally designed by Robert old retired Toronto banker, bought
Trent Jones Sr. The course—which a two-bedroom, 2,400-square-foot
was just renovated by his son Rees unit in one of the residential towers
Jones, the brother of Robert Jr.— four years ago for about $2 million.
stretches along the coastline, with Mr. Lagopoulos says he immedi-
10 holes perched on cliffs. Owners ately unplugs when he arrives at the
can indulge in perks that include resort and sometimes plays a round
an “energy-healing” treatment of golf with his 28-year-old son.
near the surf. “The loser buys lunch and beers, THE BAHAMAS A recently completed beachfront residence, left, at Albany, a new 600-acre development on the coast
On the Caribbean side of Mex- and that’s typically me,” he says. of New Providence. On the right, an interior of an Albany property by the marina.
ico’s Yucatán Peninsula, another
set of residences is rising at the
Mayakoba resort, where three ho-
tels sit amid nearly 1,600 acres of
beaches, mangroves and canals.
The most posh are the Rosewood
Residences, where plans call for 33
FROM LEFT: JULIE LARSON/THE WALL STREET JOURNAL; STEPHEN SMITH
homes, most of them on three pri-

vate islands.
Prices range from $2.5 million
for a two-bedroom, 3,500-square-
foot home to $5.5 million for a
four-bedroom, 6,100-square-foot
property. Eleven have sold, mostly
to Americans, Canadians and Mexi-
cans.
Each residence features a mod-
ern, minimalist aesthetic, with
large windows overlooking a pri-
vate infinity-edge pool and a la-
goon. The resort’s 18-hole golf
course, designed by former No. 1-
ranked player Greg Norman, hosts
an event on the PGA tour.
Other amenities include a spa
located on a private island and a NEVIS The Four Seasons resort has an 18-hole golf course, above left, designed by Robert Trent Jones Jr. Above right, a home listed for $5.85 million in the
children’s program with activities Stewart’s Estates section of the Nevis resort, which offers views of fairways and the sea.
like scavenger hunts and pirate
nights.
When Charles Goldstuck, a 55-
year-old music-industry executive
in New York, was looking for a
new winter home, he picked a 600-
acre development called Albany on
the southwestern coast of New
Providence in the Bahamas.
He bought a lot in an area near
the beach and is about to start
building a seven-bedroom, 7,500-
square-foot home that will include
a large music and entertainment
room overlooking the ocean. He
declined to discuss the price, but a
lot alone in that section runs
about $1.5 million.
Mr. Goldstuck says he was
drawn to the vision articulated by
Joe Lewis, a billionaire British
businessman who is the main in-
vestor in Albany, along with golf-
ers Tiger Woods and Ernie Els.
Their aim was to build a “Monaco
of the Caribbean” that allows own-
ers to mix work and play and of-
fers amenities for the entire fam-
ROLANDO DIAZ FOR THE WALL STREET JOURNAL
ily, from a day school for children

to an adults-only pool where
sometimes a DJ spins tracks.
Because of the robust telecom-
munications infrastructure, “I’m
fully connected with my business
around the world,” Mr. Goldstuck
says. And “I really like the whole
dedication to wellness.”
Some late afternoons, he likes
to play a round of golf with one of
his daughters at the 18-hole
course, designed by Mr. Els, which ISLAND GETAWAY Michael Lagopoulos, above, bought a two-bedroom unit in one of the Ritz-Carlton residential towers four years ago for about $2 million. An
is now home to the Hero World 8,100-square-foot penthouse unit in the towers is currently listed for $16.1 million. The resort includes a golf course designed by Greg Norman.
The Randall Family

of Companies
Coastal Southern New England Property Specialists
Luxury Property Spotlight
PageTaft.com RandallRealtors.com KinlinGrover.com
Cotuit, Cape Cod MA $3,950,000 Guilford, CT $3,995,000 Masons Island, CT $2,190,000 East Sandwich,MA $1,299,000
Located on Leetes Island, a pen- Stunning contemporary with pan- Gorgeous renovated home with
Extraordinary waterfront level lot (1.61 acre) with a private sandy beach and insula where homes have been ocean views and deeded beach
oramic water views of Fishers Is-
pristine, unspoiled views of Nantucket sound. Build your dream home and passed down from generation to rights. Old Cape Cod charm
generation. This 4,325 sq ft home is land Sound. The in ground pool at with updated features and sys-
enjoy all that Cape Cod has to offer. Nice stairs to your private beach. Buyers water’s edge is gorgeous, as are
nestled on 2 waterfront acres, and tems. Private first floor master

features a wall of glass framing the the beautiful terrace and gardens. suite, kitchen with waterviews
view. Oversized kitchen with views, Lot has excellent elevation. Re- and new appliances. Hardwood
Kinlin Grover Osterville 508.420.1130 5 bedrooms including multiple cently renovated with 4 bedrooms, floors throughout and a love-
suites. Master with multiple walk in ly sun room leading to a large
closets and a large master bath.

deck with view.
John Campbell 203.245.1593 x1103 Melinda Carlisle 860.460.8002 Kinlin Grover Sandwich 508.833.3333
Guilford, CT $2,295,000 Masons Island, CT $4,790,000 West Chatham, MA $1,599,000

Beautifully renovated Vineyard

Your beach retreat awaits. Not one
Charlestown, RI $3,999,000 Point residence. Boasts panoramic but two homes comprise this rare
with panoramic sunrise and sun-
Ocean Farm : 42 acre saltwater-front, shingle style estate with 2 addi- views of both Long Island Sound offering. Main house completely
and wildlife-rich marshes. Large set water views out to the Mystic
tional building sites, dock, pool and direct ocean access. Graciously rebuilt and features 4 bedroom
granite kitchen opens to a stone River, Fishers Island and the At-
suites. Large comfortable kitchen.
sized rooms and fluid floor plan lead to decks and terraces. Chef’s patio with gunite pool and per- lantic. Set on a 1/2 acre of good
Detached 1 bedroom cottage is
kitchen, master br with deck & stone fireplace. gola. Brazilian cherry hardwood elevation with 298 ft of direct wa-
throughout, master bedroom suite reminiscent of old Cape Cod. Set
terfront and a permitted dock. 5 on 1.12 acres and 4/10 mi to Hard-

Randall Realtors, Patrice Fenton 401.212.6166 family room surrounded by glass.
bedrooms en suite. ing’s Beach. Solid rental history.
John Campbell 203.245.1593 x1103 Melinda Carlisle 860.460.8002 Kinlin Grover Chatham 508.945.1856
Madison, CT $1,350,000 Masons Island, CT $1,239,000 Truro, MA $1,295,000

Custom 4 bedroom 3.5 bath home This stately home boasts panoram- Simply spectacular in every way.
on 2 private acres abutting conser- ic views, seclusion, and a complete Architect designed home nestled
North Chatham, Cape Cod MA $2,600,000 vation land miles of hiking trails.
modern renovation. Ideally situat- in a serene and private setting with
Luxury home gives the perfect balance between formality and livability. ed with outstanding water views.
Spectacular forest, hillside and lovely gardens, walkways and an in-

-
Located in desirable Harbor Coves with a private beach and fronting Ry- Long Island Sound views. Master met kitchen add to the home’s in- ground pool. Nature abounds with

! "
#
!
suite is a spacious sanctuary with terior appeal. The fully equipped 1 frequent wildlife sightings. Elegant,
a private deck and custom bath. br guest cottage has its own kitch- welcoming and comfortable with 5
beautiful mill work throughout. Japanese waterfall, gardens, stonewalls &
Arched breezway to an in-ground en and bath. Available boat dock- bedrooms, screened porch, patio,
patio. pool, solar panels and irrigation. age for water enthusiasts. hot tub and 2 car garage.
Kinlin Grover Harwich Port 508.432.8800 Fran Wiehn 860.823.0707 Kinlin Grover Truro 508.349.2782
River to Shore Group 860.767.5390
The Randall Family of Companies Experiences Three-Year Sales Growth of 78%

Ranking two years in a row on Inc. Magazine’s List of America’s Fastest-Growing Private Companies - the Inc. 5000. Headquartered in Charlestown, RI, the Randall Family of

in sales. The Randall Family of Companies was also named to RIS Media’s Power Broker 500 for two years running. The Company’s nearly

!
" #

! $

% & ' (

) * " !

MANSION
HOUSE CALL | ALAN CUMMING
Seeds of Acting Grew in Tense Family Life

A Broadway and TV actor recalls growing up on a 14,000-acre Scottish estate and the rage of a father
I hadn’t spoken to him for 17

Coming home from school at dusk was scary. years. I once confronted him about
The house where I grew up was near Car- the violence, and that didn’t go
well. We never stayed in touch af-
noustie, on the northeast coast of Scotland. It ter that, and I never thought I’d
stood on a 14,000-acre estate, about a mile have to speak with him again.
I took a DNA test. It turned out,
from the main road. During the day, the estate I was my father’s child. All the
was a beautiful place for a child, but when the stress and emotional turmoil my
brother and I had been through—I
bus dropped me off, the forested driveway was wanted to be free of my father,
dark. I also had a rough time with my father. and this was one last grab.
I called my father to tell him
My dad, Alex, was the estate’s about the results. When I reached
forester, which meant he was in him and said the DNA proved I
charge of growing new trees and was his son, he said, “Well I’m
clearing out older ones and having glad to hear that.” Then the phone
them cut up at the sawmill for went dead. I called him back. “I
lumber. The property originally don’t know if you heard me.” He
featured Panmure House, the main was shocked.
estate building built in the late That’s when I realized I wasn’t
1600s. But by the time I lived there going to get satisfaction. My fa-
in the 1970s, all that remained was ther was going to believe what he
FREDERIC ARANDA (PORTRAIT); ALAN CUMMING (HISTORICAL)

the chapel and the stables. had made up in his head long ago
Our two-story house stood be- instead of what I was telling him.
low the sawmill across from the None of this bothers me now. I
tree nursery. It was a gray stone feel that everything that happens
Gothic Scottish estate house pro- to you in the past is part of the
vided by the landowner. There was reason you are where you are. I’m
a slate roof and windows on the happy, so I can’t regret my past. I
ground floor with mottled circles don’t think I’d be a better actor if I
in the glass. had a happier childhood.
I shared a bedroom with my Today, I live in a four-room
older brother, Tom. The room was BACKSTAGE Alan Cumming, right, at apartment with my husband,
so drafty I could see my breath in Chez Josephine in Manhattan in No- Grant, near Tompkins Square Park
the winter. The room next to ours vember, and, above on right, with his in New York’s East Village. The liv-
was large—a playroom of sorts that brother, Tom, in Scotland in 1968. ing room is filled with sunlight.
doubled as a den. It had a little tur- I love sitting in our window
ret window looking out to the field. reason for the cruelty when they how I was going to behave. a club, and it was a relief not to be seat looking down at the park. It’s
That’s where I did my homework, came. He would work himself up Carnoustie High School didn’t chided or derided. the same peaceful feeling I had as
at a large table while looking out- into a state and then explode. My have a drama department so act- In May 2010, I agreed to be on a child, being away in the upstairs
side. There also was a little door mother, Mary, tolerated the situa- ing wasn’t an outlet for me until the BBC version of “Who Do You den of our home in Scotland, gaz-
that led to a secret attic in the tion as best she could. my last year. My English teacher Think You Are?,” a TV show that ing out at the green landscape.
eaves where I went to be by myself. I suppose the seeds of my act- held acting classes after school interviews family members and —As told to Marc Myers
I had a silent childhood, with ing studies were planted when I and there was the Carnoustie The- looks into your genealogy. The
pauses between bouts of terror in- had to hide my feelings and try to atre Club in town. night before I started filming, my Actor Alan Cumming, 51, is a
flicted by my father. Our house understand my father’s. I had to Acting for me then was about brother came to my apartment in writer, producer and director. He
was incredibly tense as we won- size up his level of energy—what being away from home and being London to tell me our father told is author of the memoir “Not My
dered when the next episode of part of the anger cycle he was in. I with people I liked and who liked him that I wasn’t his biological Father’s Son” (Dey St.) and he re-
rage would be unleashed. My fa- became quite good at it, reading a me. Acting was the first thing I son. My father claimed my mother cently released the album “Sings
ther’s violent spells weren’t con- situation before it arrived and was really good at, so I stuck to it. had been with another man. Sappy Songs: Live at the Cafe Car-
stant, but there was no rhyme or then making decisions based on I felt like I was with a family or in I could barely breathe. By then, lyle” (Yellow Sound).
PRIVATE PROPERTIES | CANDACE TAYLOR
TV Executive Fred Silverman Lists in Los Angeles

Network television executive works, and was known for
Fred Silverman is putting his bringing popular shows like
longtime Los Angeles estate on “Three’s Company” to televi-
the market for $30 million, ac- sion. In 1988 he purchased the
cording to listing agents Ste- main house, a ranch built in the
phen Shapiro and Richard Ehr- early 1950s, then renovated and
lich of Westside Estate Agency. expanded it, Mr. Shapiro said. In
The Brentwood property has 1998 Mr. Silverman bought an
been Mr. Silverman’s home for adjacent home that became the
over 20 years, Mr. Shapiro said. guesthouse. The pool house
The 2.63-acre gated estate has doubles as a screening room,
a five-bedroom main house with a drop-drown screen and a
measuring about 8,000 square projector. There is also a large
feet, plus a four-bedroom koi pond with over 100 fish, Mr.
guesthouse which Mr. Silver- Shapiro said.
man uses as an office, Mr. Sha- Mr. Silverman, 78, couldn't
piro said. There is also a swim- be reached for comment. Mr.
ming pool, pool house and a Shapiro said Mr. Silverman is
tennis court. selling because he and his wife
Mr. Silverman has been an have purchased a smaller home
executive at all three major net- in Pacific Palisades.
NICK SPRINGETT (3)
A $36 MILLION ESTATE IN SOUTHAMPTON, N.Y., ASKS $59 MILLION

LISTING IN A Hamptons estate on The property is owned by acres so they resemble “a man-
roughly 15 acres is going on the the family of the late investor icured golf course fairway.” He
HONOLULU market for $59 million. Located Frank H. Wyman, who bought also had homes in New York
in the estate section of South- it about 35 years ago, accord- City, Vail, Colo., and the Baha-
An under-construction pent- ampton, N.Y., with views of ing to his son, Fred Wyman. mas, his son said.
house in Honolulu is going on Lake Agawam, the property in- After acquiring the land, Mr. Mr. Wyman died in 2013 in
the market for $36 million, cludes a house built in the Wyman, an avid golfer, built the his 90s, and the family is sell-
which would set a record for 1980s, according to Tim Davis house and did extensive land- ing because “we didn’t feel we
Hawaii condos if it fetches its of the Corcoran Group, who is scaping, his son said, planting would use the place,” the youn-
FROM LEFT: WARD VILLAGE (RENDERING); THE CORCORAN GROUP
asking price, according to the listing the property with Debo- specialized grasses on about 6 ger Mr. Wyman said.
developers. rah Srb of Sotheby’s Interna-
The unit is on the 36th floor tional Realty. The house has
of Waiea, a condo tower being have ocean, mountain and Ho- Sales at Waiea, which has seven bedrooms and measures
built in the 60-acre Ward Vil- nolulu skyline views, Mr. Van- 174 units, started in February of about 6,500 square feet. The
lage planned community, ac- derboom said. Outside it will 2014 and the project is now property includes a tennis
cording to Nicholas Vander- have a lanai with a private infin- over 90% sold, Mr. Vander- court, an outdoor swimming
boom and Bill Pisetsky of ity pool and a pool house con- boom said. The penthouses pool and pool house.
Howard Hughes Corp., the de- taining a guest bedroom, weren’t previously marketed, The property consists of
veloper. The five-bedroom unit kitchen, bar and living room. and will now be going on the four building lots, so three
is the highest-priced condo cur- The unit will be fully furnished, multiple listing service in com- other houses could be built on
rently on the market in the is- though the furniture is an addi- ing weeks, he said. Building it, Mr. Davis said. The lots are
lands, Mr. Vanderboom said. No tional cost, and will also come amenities include a pool with also for sale individually: The
condo unit in the state has ever with a private four-car garage, cabanas, a dog park, an indoor main house, which sits on
sold for more than $20 million, he said. A six-bedroom pent- golf simulator and a fitness about 5.5 acres, is asking
he said. house on the floor below, which center with a yoga room. The $19.75 million and the three
Measuring about 10,100 measures about 8,500 square building is slated to be com- other lots are $13.95 million See more photos of notable homes at WSJ.com/Mansion.
square feet, the penthouse will feet, is asking $35 million. pleted in late 2016. each. Email: [email protected]
ADVERTISEMENT
JOHN’S ISLAND – VERO BEACH, FLORIDA KIAWAH ISLAND, SOUTH CAROLINA BLUE CREEK LAND COMPANY, NEBRASKA
Located in the private seaside community of John’s Island and Beautiful 4BR beach home with sweeping fairway views is just a “RANCH AUCTION” Invest in the world’s largest freshwater Aquifer!
reminiscent of quaint French gardens, this 2BR+Library retreat overlooks five-minute walk to Kiawah’s 10-mile beach. The open floor plan features One of the finest showplace ranches in the nation, located in the heart of
J I Sound, a gracious pool and a protected nature reserve. Nestled on .67± hardwood floors, cathedral ceilings, spacious kitchen, breakfast room, garage, the Ogallala Aquifer. 11,279 acres with 850 head feedlot. Highly profitable,
acres, this beautifully landscaped home offers an expansive living room and lots of outdoor living space. Centrally located, 167 Surfsong enjoys exemplary wildlife habitat, highest quality improvements,luxury lodges.
with fireplace, large master suite, fountained courtyard, & boat dock. proximity to world-class amenities, including the world-famous Ocean Course. Fantastic hunting and trout fishing property. Auction April 22 in Ogallala NE.
Registered phone bidders accepted.
$2,750,000 www.JohnsIslandRealEstate.com $1,295,000 kiawahisland.com/real-estate LashleyLand.com
Lashley Land and Recreational Brokers
John’s Island Real Estate Company Kiawah Island Real Estate Scott Saults
p: 772.231.0900 e: [email protected] phone: 866.542.9243 phone: 308.289.1383 [email protected]
BOCA/DELRAY BEACH, FLORIDA KENTFIELD, CALIFORNIA NAPLES, FLORIDA

Incredible opportunity at Seven Bridges - brand new homes in a highly 65 Rock Road is a serene gated Kent Woodlands hillside estate. 5 BR/6BA New Luxury Single-Family, Villa and Coach Homes at The Isles of
amenitized non-golf community in the Boca Raton / Delray Beach area. Italian villa style residence set in magnificent gardens with a custom stucco Collier Preserve! Over half the 2,400 acres are dedicated to lakes, nature
Generous features include impact glass, marble countertops, gourmet exterior and tile roof for maximum low maintenance. The Southwest facing preserves and natural habitat. The Isles Club is now open and features a
kitchens and 30,000 sq. ft. club. Low HOA fees, close to world-class patio, infinity pool, outdoor kitchen and conversation fire-pit create an clubhouse, fitness center and multi-purpose room. Outdoor-inspired amenities
shopping, great schools. Inquire today! un-equaled ambiance for gatherings. Catch a glimpse of the San Francisco include a resort-style pool, tennis courts, kayak launch and 8 miles of scenic
skyline while also being able to reach out and touch Mt. Tam. kayak, hiking and biking trails! 5 Minutes from Downtown Naples.
From the $700’s to $2 million glhomes.com $6,450,000 65RockRoad.com From the mid $300s to over $1 million. mintofla.com
GL Homes Penny Wright-Mulligan Minto Communities

phone: 800.875.2179 phone: 415.601.8191 [email protected] phone: 888.483.8708
SAN ANTONIO, TEXAS BOCA RATON, FLORIDA WESTHAMPTON BEACH, NEW YORK
Experience life at the top of San Antonio’s premier residential high-rise. Royal Palm Polo, an exclusive resort-style gated community is home to The “First Hampton” – closest to New York City! A historic oceanfront
Located in prestigious 78209, The Broadway offers residents convenient the Loreto Tuscan featuring 4-BRS, 4 ½-BAs, 5,423 sq. ft., a dramatic entry “Arts & Crafts” home built in 1909 and well maintained. Charm and simplicity
access to the city’s most sought after neighborhood, as well as unequaled with a two-story foyer, gourmet kitchen, expansive family room with wet bar on over 3 private acres. 300 feet of beach frontage. 8 bedrooms, 50 foot
views, five-star amenities & 24-hour concierge services. Approaching 70% and direct access to covered lanai. An expanded master BR suite featuring heated pool. An Oceanfront “Gem” priced to sell.
sold out, now is the time to secure your home at The Broadway. morning kitchen, private sitting area, dual walk-in closets, and a luxurious
master bathroom with free standing tub. Custom swimming pool and spa.
Starting at $650,000 www.TheBroadwayCondos.com $1,795,995 RoyalPalmPolo.com/Luxury $17,995,000 www.marketplacerealty.com
The Broadway
Craig Pietramale Toll Brothers Marketplace Realty
phone: 210-960-9321 phone: 866.309.0089 phone: 631-288-6996 [email protected]
MARISOL, MALIBU, CALIFORNIA LAKEWOOD RANCH, FLORIDA SANTA YNEZ VALLEY, CALIFORNIA
Award-winning oceanfront estate in MariSol, Malibu’s exceptionally private Build your dream estate in The Lake Club; a private community of custom Spanish Colonial home on 5 acres, high quality construction. 3 bedrooms
80-acre, 17-home community. 7 bdr/11 bath, 13,814 sqft w/ 137’ of frontage luxury homes with scenic lakes, bridges, parks and a Grande Clubhouse. Live and 6 baths, office, exercise room, tech room, outdoor loggia with BBQ &
on Malibu’s finest surf break. Elevator accessed 2,500+ sqft master suite, minutes from the Sarasota Polo Club, 5 premier golf courses, the Lakewood fireplace, 2 walk in wine storage rooms, high ceilings, hand carved doors and
putting green, movie theater, 67’ infinity-edge pool, gym, detached studio, Ranch Golf & Country Club, and the white sand beaches of the Gulf coast. more Extra room with a full bath could be used as a library, music or media
aquarium, fully furnished. Nearby private airport. Choose your homesite and enjoy an extraordinary way of life. room or a 4th bedroom. Room for barn, grapes, etc.
$27,900,000 www.marisolmalibu.com Lots from $200K to $800K+ TheLakeClubLWR.com $3,395,000 http://bit.ly/1RLrqqV

The Lake Club
MariSol Malibu Karen Lima Santa Ynez Valley Real Estate Company
phone: 310.589.8848 [email protected] phone: 866.498.5253 [email protected] phone: 805.688.5717 [email protected]
To Advertise Call: +44 (0) 207-572-2124

START YOUR
FREE TRIAL
TODAY
FROM DEALS TO DATA,

WE HAVE THE CITY COVERED.
FOLLOW THE
KEY PLAYERS
Find the most important stories
about the people shaping City
business, from deal makers to
deal breakers.
GET WORLD-CLASS
CITY NEWS
Keep up with City coverage
from top news sources,
including The Wall Street Journal
and Financial News.
STAY ON TOP OF
THE MARKETS
View major-markets data in
real-time, ordered according
to your interests, so you never
miss essential information.
The new WSJ CITY APP provides essential coverage on the most important financial players, markets and deals in the City and
beyond — brought to you by our dedicated team of editors in London. Get the instant briefings you need to stay ahead in one of
the world’s chief financial centres.
Download the WSJ City App.
© 2016 Dow Jones & Co., Inc. All rights reserved. 6DJ2834
THE GOLF HOMES ISSUE
SETTING A MEDITERRANEAN COURSE

Continued from page W9
opened in 2003 by Hans-Peter
Porsche, a member of the Austro-
German family of car makers.
Mallorca’s emergence as a ma-
jor Mediterranean golf destination
and its growing inventory of eight-
figure luxury villas have helped
change the profile of the largest of
the Balearic Island chain over the
past decade.
“I play everywhere,” says Anto-
nio Garcia-Ruiz, a Palma architect
who specializes in designing lux-
ury villas. Like many golfers on
the island, he plays close to home,
but once or twice a year he makes
the pilgrimage to top courses such
as Son Gual and Alcanada.
For his own home, the 39-year-
old Mallorca native has chosen a
valley setting between Palma and
the Serra de Tramuntana, the
mountain range running along the
island’s northwestern edge. The
villa, built piecemeal over the past
decade on a 5-acre lot, started out
as a tiny house that once gave
shelter to a local priest.
The house “changes every year,”
says Mr. Garcia-Ruiz, who conceals
the structure’s warren of interlock-
ing glass pavilions with fruit and
JAMES RAJOTTE FOR THE WALL STREET JOURNAL (4)

Buyers on Mallorca tend to
be German and British, and
many agents attribute the
market’s strength to the
strong German economy.
olive trees. He says he has spent MOUNTAINSIDE The living room, above, in the home of Karin Kleine and Johannes Bruggeling, below right. The estate, on the Tramuntana range, was bought in
about $740,000 on the project so 1998 for $2.85 million, with another $9.1 million invested. It is now listed for $14.58 million. Below left, a terrace and the dining room.
far, with one major expense being
a 42-foot-long infinity pool and “finca” style, recalling the island’s German economy and the value of
adjoining bar area. The 7,500- centuries-old farmhouses. the pound against the euro.
square-foot home currently has six Although prices bottomed out High-end German buyers look
bedrooms and six bathrooms. in 2014 in the wake of Europe’s for homes in Son Vida and An-
This year’s addition is a chil- wider economic crisis, Mallorca dratx, while some British buyers
dren’s playroom, being fashioned now has one of the strongest resi- might look farther afield, like the
out of a 1,500-square-foot annex. dential markets in Europe, says area around Pollensa on the far
In the future, he hopes to outfit Mark Harvey, London-based head north of the Tramuntana range,
his home cinema with a golf simu- of Knight Frank’s Spanish and where there are sandy beaches as
lator. In the mean time, he says, French networks. well as mountain vistas.
he is making do with a putting The sale of high-end residential Mr. Garcia-Ruiz is currently de-
cup. properties on Mallorca increased signing a 43,000-square-foot,
Danna Swarovski says her hus- about 20% in 2015, he adds. Golf four-structure Son Vida com-
band enjoys Mallorca for the con- villas, an emerging midrange lux- pound, with a dozen bedrooms
venience of its many golf courses. ury category, often border courses, and more than 20 bathrooms, for
She likes the beauty of the island offering homeowners the option of a German client. “It’s like a cas-
and the sea. And they both enjoy keeping a golf cart in their garage tle,” he says.
its homegrown cuisine. so they can ride right onto the In 1998, Dutch software entre-
Ms. Swarovski is the American- links from home. One, a 1-acre golf preneur Johannes Bruggeling and
born wife of Helmut Swarovski, estate with easy access to two his wife, Karin Kleine, bought an
former chairman of the Swarovski but Mallorca has the best food, now on the market, and composer courses and a short drive from estate on the mountainside above
Group, the family-owned Austrian pointing to Palma’s bustling main Andrew Lloyd Webber. Palma, is on the market for $5.52 Deià for $2.85 million. They gave
crystal and luxury-goods conglom- market hall, Mercat de l’Olivar. On the island’s southwest coast million. The main house has six the property and its traditional
erate. She praises the island’s gen- The Swarovski family’s other are Port d’Andratx, a Monaco-like bedrooms and five bathrooms, and stone villa, built by a Barcelona
trifying metropolis, Palma de Ma- island estate is between Deià and cluster of villa-covered cliffs over- has immediate access to courses at family a few years earlier, landscap-
llorca, and the seclusion of what the sea. Some of the Mallorca’s looking a swank waterfront, and the Golf Santa Ponsa club. ing and infrastructure upgrades.
she calls “our little valley,” the most prestigious homes are Son Vida, a mountainside commu- In Port d’Andratx, a new, three- “We bought it because of the
family’s 350-acre estate near Pol- nearby on the island’s northwest- nity close to Palma, whose airport quarter-acre estate with a main fantastic view,” says Mr. Brug-
lensa on the island’s northern tip. ern edge, clinging to the sides of is a two-hour flight from many villa and a large guesthouse, has an geling, 70 years old, who divides
The property and its renovated the Tramuntanas. The area, northern European cities. asking price of $19.4 million. The his time between the island and
17th-century farmhouse are on the known for its cluster of quaint Prices are rising in Palma, where property has expansive sea views, Düsseldorf, Germany.
market for $6.3 million. villages, including Deià and Vall- properties in the renovated historic a spa area, a home cinema and its The couple invested about $9.1
The Swarovskis also own a sec- demossa, offers privacy along center now command well over $1 own Spanish-style wine cellar, suit- million in the sloping, 9.5-acre
ond Mallorca estate, and they with superlative views, though million. Many of the new villas close able for party-size tastings. property, adding a network of ter-
have decided they don’t need some potential buyers balk at the to Palma are contemporary, but the Buyers on Mallorca tend to be races, and structural improve-
both, she says. Ms. Swarovski narrow, winding roads. Home- recent homes in Tramuntana tend German and British, and many ments like a private generator and
says the family also has homes in owners here include actor Michael to be traditional, often using local real-estate agents attribute the 132,000 gallons of water storage.
Austria, Florida, and Barbados, Douglas, whose historic estate is materials to create structures in the market’s strength to the booming The asking price is $14.58 million.
WHERE IN THE WORLD?
SUMMER HOMES FOR LINKS LOVERS

Arizona, England or Italy? Can you match these three summer homes near golf courses with their locations? Answers below.
FROM LEFT: ANDREW BENEZE (2); E. SOMAINI/VISUAL WORKING (2)
STRUTT & PARKER/CHRISTIE’S INTERNATIONAL REAL ESTATE (2)
$27.3 million $24.5 million $13.7 million

13 bedrooms, seven bathrooms Six bedrooms, 14 bathrooms Six bedrooms, six bathrooms and guesthouse
This expansive home features a flower room, gun room and bil- Overlooking the sixth hole of an 18-hole golf course, this This villa was commissioned by a British noble family and built in
liards room. The grounds include a private nine-hole golf course, a 20,805-square-foot home has two elevators and five indoor and 1910. The main house has six bedrooms and a guesthouse pro-
swimming pool, three lakes, a tennis court and horse stables. Also outdoor kitchens. The property, which spans 3.92 acres, includes vides two more bedrooms. The nearly 7-acre property includes
set among the park land are formal gardens and a walled garden. a virtual-reality golf simulator, a gymnasium with basketball man-made waterfalls, caves, ponds and an art studio. This 8,611-
Three species of deer can be hunted on this 257-acre property. A court, a volleyball court, a rock-climbing wall and a fitness center square-foot residence is a short walk from an 18-hole golf course.
game larder is included in the sale. with steam room. Agent: Habitat Real Estate/Savills
Agent: Christie’s International Real Estate Agent: The Moen Group —Aili McConnon
ANSWERS: FROM LEFT, OXFORDSHIRE, ENGLAND, SCOTTSDALE, ARIZ., LAKE COMO, ITALY

48 B;.)// %)./)/// 7,-2222 ;)6)/// 7

$1 +1 .#773) +1 #+2) +1 #+2) N

N
N

A 360#3) 524?+7 7<> 1) 5+? 4? : 54=7') 2=#1 90 : :249 012?# 7##9 12?#2 3 06111+ 39871# <30+3 ?##0 #P=+1 98
# " # #
38# '1203046'0# 0+8 +1 2'#+1 <#:3 +0261 542? 0.3

N

!"# 37+1 ) 049530 1229) 0+4) :91 =+1048@ A'+4 ++4++#@ )+0# 3<# 2=#1 3=+'#3 1 0.3 +7+?24263 =#10.263#- 4#<#7 1 0.# 8" N# % ## #
N
N '210#?=24+48 4#?2 #7 21 0.# '2<#0# 3260. 3 # 25 ,+49
! !

$

% % '2??6108@ 76P648 25 0:2 +#1#4263) :4+=+4261 0+7'21#3@ #) N
# # #
# ,7+'#@ 52 #0+7 3=+4# 641+ 0.# #P0#13<# 4#12<+021@ " #
$%
& '
+75241+ ,42=#40#3 +75214+ ,42=#40#3 % 8 '8 8
# +75241+ ,42=#40#3 &N ' (
( ) " *+",-"!+ +7# :+1321 MB/B%;L%;B )4#++ 5#6?+1 6//..;..;/ 98 ( " +22",,",,2 )4#++ 5#6?+1 6//..;..;/ ) * ++"",

. +7#3:+1321/0..3'+=42=#40#3@'2?

327 /3#773+1 #+2@'2?
# .## 327 /3#7733+1 #+2@'2?
32

#&4 ) * " & " 2,
-
N./

)BM)/// .)LL)/// ;)%L)/// A)./)/// LLM)M// 3E!!FFF
*4##1:'.) *4##1:'.) +#5#7 ) +7#?) ?841+) -+ 4

$?=4#33<# B0# 422?) @.0+0. .2?# :0. =227) 0670 1 ) % ?2 #41O# ;(/D3 +10)6# 5+4?.263#) .+. $1 +1 #1<+07# 1#+.024.22 0.3 ) 0+0. '6302? =#'0+'67+4 7+9#54210 4#04#+0 21 A; =4301# +'4#3@ 421 +P)630#78 4#3024# ;M%/3 B0# ) 5677 A.+750+0. .2?#
H

I I
.//% 21 .@AB +'4#3 1 & 261048 *4##1:'.@ '10#7#< 21 ;/ +'4#3@ ,227) . 0+413 :0. A 30+773) 0+'9>5## 422?) 2721+7 21 ; +'4# .+3 '6302? ?77:249) 06701 '+01#048) +'9 13=4# ?+1 72 +# :0. 1 224 =227>#10#40+1?#10 21 ;AC +'4#3@ *#107#?+1D3 261048 +30+0# :0. .+'4# I

I

+07# <+76# :0. ();/A 3)6+4# 5##0- =+ 2'93 3 +2+0 .263#@ ,#45#'0 :##9#1 +#0+:+8@ 6=+4+ # ?+0#4+73 0.426+.260 3 A 7#<#73 25 7<+07# 3=+'#@ '#10#4 +1 0:2 +6#30 '200++#3@ =21 ) %30+77 .243# 0+41) :249 306 2) +1 '+4#0+9#4D3 +=0@ I
I

*#: +1+7+1 ,42=#40#3 *#: +1+7+1 ,42=#40#3 *#: +1+7+1 ,42=#40#3 *#: +1+7+1 ,42=#40#3 /2P 3 2+'.) + 012 3

8I
-+7# &244321 ./A.A.M;/ .#7+ 0+44 L;MM;;MA +1 4+ /67+12 ./A.%L(B. 1+#7+ 6#7 (B/M/M% 2=.+ 71398 ...BM.M/; 0

5 K 6 KEFKK7

?244321.0..31#@'2? 3.#7+30+44.0..31#@'2?
+1 4+/67+12.0..3*+@'2? 1 )" &" 23
6#7.0..3*+@'2? 32=.+@071398.52P42+'.@'2?
32=

1"1

/. .)-L)/// ;)/M)/// ;)///)/// );.)/// :FFF
( , 9 -+<+11+.) * /2127676) /, /2127676) /, ;+76+) /, ; 51 2

"

4+0.0+91+ <:3 25 0. ,104+'2+30+7 :+04:+8 542? 0.3 07721 277+4 ?+41+ 02 2'+1 <:3- .+4?1+ ?+4 *4+0 +76- -='+7 1 24 :+101+ 02 ++ 1 =7+'2 31 4.3 1:4 =7+10+021 3087 .2? 3 306+0 21 + =4? G<556 21 57 I2 52 21
2 6 I

412<+0 )2=1 '21'=0 .2?- - D3)-@ D3 =763 02163 1+54210 '2??6108 :0. 8264 2:1 02+0 2'9 +1 1+'6OO@ 25+91 .0 422? 0+3056778 4?2 7 +1 :.7'.+4 3=20 25 :247 5+?263 ;+76+ +'. +1 3 72'+0 +0 0.

H

'

422? 360@ 7+P +1 61:1 21 0. 5+067263 =24'.3@ -='0+'67+4 /+:++1 361303 +78@ +''3307@ .+79 02 7+ 02+1+ 104 +1 0+'. =+49@ 1 25 + =4<+0 7+1@
H I H
H

-260.+30 2+30+7 .42=403 /+:+D +708 /+:+D +708 /+:+D +708 H

!
" ##"$"%$& 0+ (+4+?8 L;.A-;M; 5'27 @ (?+3) /;. ;+41 20403.+: /MMLM 0+48 2: /-.M/A

H F EE! E

!
'(
)
40+7+4+?8+00@10 11'270..3.+:+@'2?

#&'& (& ) *" #" #+
9+4140..3.+:+@'2?
9+4
,& -&& .)&/ *" #
?0 2:+00@10
" H

0& " (&" #+
1EFFF ( L)// " B)-L)///
! $
" (+9 .'9248) &
- (+3 +3) 5
I
H FFF "

$
$
77 1: 7+954210 .2? 1 0. 5220.773 25 & , 4+503?+1 ! ( ' ' -=+13. 04+7 76P648 30+0 '2?=261 . ;. 422?3 . ;
I
" $ "
" ! " 3087 0+73 0.426.260 , .// 50 25 :+04 54210+ , " # $ % & '&( ) * #(( (# # ( &( &# +0.3 . ;@/A+'4 720 21 0. 275 '2643 . *+1 .263 3
H H H
H
I ! #
$ "

" (+93 '93 +1 '2<4 2'9 1 =7+' , (2: 0+P3 + $
# # ($ ( ;)-A; 3/ 50 . 6630 .263 3 .);L/ 3/ 50

" " #
.'9248 *042 +7 +30+0 ( , ($ -$ & 5<+ + 742=403
"I ##$%$F $" " % &%'%& ( *+4+11+ ,84 ..A-/-L/ - ( ."/.! , 1& & 0 2 8 ;+3+?+ M/.A/M./

&I ' ! )))"

)))

" *
"
$

!" #$%
?+4+11+?+4+11+84@'2?
?+
- (0 (
34 /"" 34 """

. 9+3+?+426=@'2?
M%//%/// BLL%L// ;%.LL%/// .%B/%/// ;%)M%/// MB%///
*'43 7% &, /0083-64% /

7<41% / /.7 7=.% / ,30 .304% / ,4 78% /
2 - -670 -8 412:1 -67 4% 0.3 ?-30' 27217 .C '43 0(:3 @ 63.?11 .3024' 54? 72'0 ?1@ 7?230 1: -8 778 24 /49 1 # 3'.2273@ C % B 0 62.1 /11 .263 741 321 25 ,77? /118 '4' ;MB :1 1 ;1277 4? 306111 3021 54?.263 /41 )- 422? A-0. 3021 '307@ /40 4<4 <:3%
1 0.
6448 .77 #300 4 3 30 524 '2?=7021 1 ./;B% *@ 25 /0083-64@ A.//C* -4'9 0641 25 0. '10648 .2? % =4<0 '67 3' .@) '43@ #<48 ?108 1'76 1 /24 ,3.1021 ;M;.@ ;
430B//C 39 50% M - 422?3>A;>. -0.422?3@ B/ '43 25 =3064 721 0. 3='0'674 90'.1% A'4 4% 21 =4<0 ;'4 720@
:0. 1 733 2==2406103 02 '6302?O@ =763 3021 5261 021 '213046'0 <7 ,4 -19 -41@ '.5D3 90'.1 1 '2?=70 17:>630 360@ )@- *721 (-48 1% =7 . 50 , 0. &0217 .30 @ 41 8:1 <4% = 1 .610 261048@ #38 '2??60 02 &: ,249 08 3 /.7 7=.@
,30'.304 /42=403 .2?37 708 2P 3 2'.% # (4*5 2P 3 2'.% # (4*5 2P 1 2'.% # (4*5 2P 3 2'.% # (4*5

1 8 /4301 L;)AALA 2< (@ *03 M;MAA;)ML
4 /24 21 B;/B)A;/ PA 62.1 /24071 .BM.AMAM)A 1 4 /2487 .;.L/A.)A 621 .61 .BMBB)..

1 8/4301-..3:30'.304@'2?

730347?'2@10 *4@

28.452P42'.@'2?

-2.
-2.1@=24071 52P42'.@'2? 1 4@248752P42'.@'2?
-21@.6152P42'.@'2?
.///// ././// EFFF L.%// .%///%///
00122 00122

00122% & *?0
26101 (9%

30456778 450 49 3021 300 :0 ;// 25 064125010648 404 :>32=300 GH G H H I I 47<7% =4<0 3='0'674 ?26101<: '43 +1<30?10 2==2406108 1307 721 ;A@ ?73 25 324

N
2<4 =243 2<472291 // 50 25 54210 21 0 .;3010648 6= 03 21 4C <4<: 720 2<472291 HJI 1 <48 2=1 '6302? 2? :0 =227 1 630 263 1 71 1 0 ,04D3 @ +1'76 3 0 300% ;27

1133 <4 :>1 ?1603 25 2:102:1 00122@ <4@ 00122D3 ?230 347 =7 02 77 2?@ G I I
=4?4 '2??6108 542? L//D3 02 2<4 %///%///@ '2643 1 =4<0 '261048 '76@
! "
708 104 708 104 708 104 *?0

26101 (9 7 300

#

1 429 .AABBBA 1 429 .AABBBA ! "K#!#"!"# (1 42'9 ).AAB))BBA 21 (@ ,774 ++ )/AM;L; $
% &%&'&%(

4294708104@2?
4294708104@2?
$

(42'94708'104@'2?
:043 275300@'2?

)*+

! "# $$% & " &
' & " "("") #" " ( # ) $ " # )
$ )$% $ & $ & $ *"+ ,! !" -((!")

Wallstreetjournaleurope 20160408 The Wall Street Journal Europe

Uploaded by

Copyright:

Available Formats

Wallstreetjournaleurope 20160408 The Wall Street Journal Europe

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Wallstreetjournaleurope 20160408 The Wall Street Journal Europe

Uploaded by

Copyright:

Available Formats

For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.

Golf Homes Dan Neil

Putin Brushes Aside ‘Panama Papers’ Allegations Militants

of a single junk bond. B5

CEO Pay Fell Most Since ’08

Islamic State militants in

Fonseca, the law firm at

chain of big-box stores called there is plenty of she banned what

YAROSLAV TROFIMOV/THE WALL STREET JOURNAL

Kerry, Bahrain Chide SYRIA

CLASH ment to delivering results for

Europe Edition ISSN 0921-99

Co-Founder Defends Mossack Fonseca Cameron Profited From

Dutch ‘No’ Vote on Ukraine Reverberates Across the Continent

1MDB Report Spares Malaysia’s Najib

Saudi Actress Riles Cairo With Police Abuse Charge

Egypt as CAIRO—With a few soap-

Nations no apparent history of political

Boost Ties an unlikely frontwoman for the

MAHMOUD KHALED/AGENCE FRANCE-PRESSE/GETTY IMAGES

monarchy pursues a more ag- GERMANY ing to police and doctors.

RICHARD DREW/ASSOCIATED PRESS

Unions’ Super PAC Stalls

FROM PAGE ONE

Basketball’s Greatest Innovators

ABOVE THE RIM SKY HOOK TRIANGLE OFFENSE THREE BALL

Mike Sudal/THE WALL STREET JOURNAL.

POINTS reer. But it played a crucial role

JASON HENRY FOR THE WALL STREET JOURNAL

VEGAN mer au pair from Sweden,

‘Property is the embodiment of personality.’ —G.W.F. Hegel

The Long History of Retail Therapy

Emphasizing the Downbeat

Freedom for Me but Not for Thee

Holy Rubble and Rabble

Jerusalem got nine. man’s description of Jerusalem, in

Catching Nature on the Wing

An Overheated Climate Alarm

Obama Is Wrong About Pfizer’s Merger and Growth

Yemen’s Looming Migrant Crisis

ARTS & ENTERTAINMENT

MERLE HAGGARD (1937-2016):

Brilliance Born in a Boxcar

EBET ROBERTS/REDFERNS/GETTY IMAGES

Weather The WSJ Daily Crossword | Edited by Mike Shenk

Denver 18 6 pc 21 8 c Nashville 17 2 pc 12 2 s Tel Aviv 31 21 pc 33 21 pc S L R B O WS S E G E L

COVERAGE YOU TRUST. Discover the value of a WSJ Membership.

BUSINESS & TECH.

Bet on Junk Bonds

Licensing BERLIN—Volkswagen AG’s

Agreement publicly with the car maker’s

Samsung Lowers Price to Broaden Appeal

rules, arguing that they were launched last September in In-

100 4 4Q: 8.9%

Amazon’s Fashion Secret: Full Price Apple Has History

INDEX TO BUSINESSES BUSINESS NEWS

CHRIS RATCLIFFE/BLOOMBERG NEWS

INDEX TO PEOPLE its margins in this business.

Boeing Urges Action to try on clothes, Amazon’s