Google Faces EU Antitrust Charges

Greg Ip Retooling The World Economy’s The Tuileries Model Country

ARTS | A11 CAPITAL ACCOUNT | A2

** THURSDAY, APRIL 21, 2016 ~ VOL. XXXIV NO. 57 WSJ.com EUROPE EDITION DJIA 18096.27 À 0.24% S&P 500 2102.40 À 0.08% NIKKEI 16906.54 À 0.19% STOXX 600 350.75 À 0.43% OIL 42.63 À 3.77% GOLD 1253.20 À 0.02% EURO 1.1335 g 0.21% DLR ¥109.46 À 0.23% What’s Google Faces EU Antitrust Charges European Commission a fresh set of antitrust charges In addition, the EU accused stager said at a news confer- markable—and, importantly, News that target the technology com- Google of withholding lucrative ence on Wednesday. She said sustainable—ecosystem, based accuses U.S. company pany’s efforts to promote its revenue-sharing agreements Google’s conduct is “stifling on open-source software and of abusing dominance core moneymaker: online from handset makers and competition and restricting in- open innovation.” He said the Business&Finance search. phone carriers that preload a novation in the wider mobile company will work with the EU of Android software The European Commission, rival search engine on their de- space.” “to demonstrate that Android is the EU’s antitrust agency, said vices. That tactic would effec- While users can always good for competition and good he EU filed antitrust BY NATALIA DROZDIAK Google had abused the domi- tively ensure that Google would download a new search for consumers.” charges against Google, T AND SAM SCHECHNER nance of its Android mobile op- be the only search engine avail- browser and change the de- The details of the case an- saying the firm abused the erating system by requiring able out of the box on the ma- fault, the EU has based its case nounced Wednesday—the EU’s dominance of its Android The European Union on phone makers to pre-install jority of phones, the EU alleged. on data showing that pre-in- second set of formal charges mobile operating system. A1 Wednesday accused Alphabet Google’s namesake search en- “Google pursues an overall stalling a service and setting it against Google in just over a European stocks con- Inc.’s Google of strong-arming gine on their devices if they strategy on mobile devices to as a default creates a lasting year—broadens the scope of tinue to trail their U.S. coun- smartphone makers and tele- want to include Google’s Play protect and expand its domi- advantage, an EU official said. the challenge Google faces from terparts, dashing hopes that com firms into making its Store, the most popular place nant position in Internet Google General Counsel Kent European regulators as it tries ECB stimulus would send search engine the default on for consumers to buy apps for search,” European Antitrust Walker responded that “An- to extend the dominance of its shares soaring this year. A1 mobile devices, as the bloc filed Android phones. Commissioner Margrethe Ve- droid has helped foster a re- Please see CHARGE page A8 Draghi will face tough questions over the impact of ECB moves at a Thurs- Royal Occasion: The Queen Turns 90 day news conference. B5 U.S. Tracks Global investors are returning to Chinese stocks, which are up 12% from their Russian 2016 low on Jan. 28. B5 VW email suggests a dif- Artillery ferent account of events in the emissions scandal than the auto maker’s version. A1 In Syria Mitsubishi said it inflated vehicle-mileage results and BY ADAM ENTOUS used an improper fuel-econ- AND GORDON LUBOLD omy testing method. B1 Kuwaiti oil workers Russia has been moving ar- ended a three-day walkout tillery units to areas of north- that had almost halved the ern Syria where government country’s crude output. B5 forces have massed, raising U.S. concern the two allies Container operators may be preparing for a return agreed to form a new ship- to full-scale fighting as the ping alliance to compete in current cease-fire falters, U.S. the Asia-to-Europe trade. B1 officials said. The tech industry domi- The recent Russian rede- nates a new list of top-pay- ployments of the units and ing U.S. companies. B1 the forces that operate them have been accompanied by the World-Wide return of some Iranian army forces to government-con- trolled areas close to the Russia has moved artil- front lines, according to offi- lery to areas of Syria where cials briefed on the intelli- regime forces have massed, gence. Russia, Iran and the raising U.S. concerns the Iranian-backed Lebanese Hez- two allies may be set to re- bollah movement have been turn to full-scale fighting. A1 Syrian President Bashar al-

I-IMAGES/ZUMA PRESS Assad’s main supporters in Hundreds of migrants BIG DAY: Queen Elizabeth II, above at the opening of a bandstand in Windsor, England, on Wednesday, celebrates her 90th birthday Thursday. the conflict. trying to reach Europe Please see SYRIA page A3 were feared drowned after their boat sank off Libya’s coast, aid agencies said. A3 Harriet Tubman to The EU said the number of migrants arriving from European Stocks Yet to Take Off Be Added to $20 Bill Turkey has fallen sharply under a controversial deal. A3 BY RIVA GOLD in the euro, weakness in rise in the euro, a growing While the S&P 500 is up NATO and Russian envoys global growth and a range of camp is starting to worry that over 2.5% this year, the Stoxx met for the first time in Investors started 2016 with local political risks, notably the central bank may be too Europe 600 is down nearly nearly two years amid rising big bets that monetary stimu- uncertainty over the U.K.’s stimulative, arguing that fur- 5%. In U.S. dollar terms, the military tensions between lus would send European vote on its membership in the ther interest-rate cuts could ratio of the MSCI EMU Total Russia and the U.S. A4 stocks soaring above their European Union. This toxic deepen the pain for the re- Return Index to the MSCI US U.S. counterparts this year. cocktail has blunted the im- gion’s banks. Equity Total Return Index hit Obama arrived in Saudi But nearly six weeks after the pact of monetary stimulus on Investors are taking notice. its lowest level in history this Arabia on a trip aimed at European Central Bank an- Europe’s stocks. Allocations of funds to euro- month. Even Germany’s mul- soothing ties with Gulf al- nounced a big package of The ECB’s meeting Thurs- zone equities dropped to 15- Please see STOCKS page A8 lies and bolstering his for- measures, U.S. stocks have day is unlikely to change the month lows in the first week eign-policy legacy. A6 left European shares trail- picture. ECB President Mario of April, while allocations to Draghi to face tough LIBRARY OF CONGRESS/REUTERS Norway has violated ing—a performance gap few Draghi said in March that he the U.S. have continued to questions after meeting...... B5 The abolitionist would be the mass killer Breivik’s human see closing any time soon. doesn’t “anticipate that it will grow, according to global Global investors step back first woman on U.S. paper money rights by keeping him European stocks have hit be necessary to reduce rates fund managers surveyed by to China...... B5 in more than a century. A7 largely isolated from other several headwinds in recent further.” And despite anemic Bank of America Merrill Europe lags far behind bull prisoners, a judge ruled. A6 months, including steep gains inflation and an unwelcome Lynch. market in U.S. banks...... B8 The U.S. Supreme Court cleared the way for terror Johnny Cash Trail Walks the Line victims to collect about $2 VW Crisis billion tied to Iran. A7 At Folsom Prison The U.S. Treasury plans Comes to Oracle #1 to put abolitionist Harriet iii Tubman on the $20 bill. A7 AHead Park on penitentiary grounds seeks Cloud ERP Inside to deter loitering, contraband This Week

MARKETS B5 BY JIM CARLTON ation director the blues. BY WILLIAM BOSTON Yet Robert Goss remains Investors FOLSOM, Calif.—When city determined, even optimistic. WOLFSBURG, Germany— officials here started planning “There is something about this Two years ago this month, a se- Bet on Political a new nature trail winding project that is right,” said Mr. nior executive in Volkswagen through prison grounds, they Goss, Folsom’s parks and rec- AG’s U.S. business learned via Drama made sure it didn’t reation director, email that environmental au- run too close to the who has the unusual thorities suspected the car 2,300 inmates who task of building a maker of rigging diesel engines CONTENTS Money & Inv...... B5-8 live behind the public recreation to cheat on emissions. Arts & Ent...... A11 Opinion...... A12-13 1,800 207 Business & Tech. B1-4 Personal Journal A10 walls of Folsom path on prison The email exchange, re- Capital Account.... A2 Technology...... B3 State Prison, where grounds. viewed by The Wall Street Jour- Crossword...... A14 U.S. News...... A7-8 Johnny Cash fa- Six decades after nal, marks the earliest date re- Oracle Cloud Workday Cloud Heard on Street.... B8 Weather...... A14 mously performed. Mr. Cash made this vealed thus far that Volkswagen ERP Customers ERP Customers Markets Digest..... B6 World News...... A2-6 Still, some in Sacramento suburb knew that its diesel engines €3.20; CHF5.50; £2.00; town worried a 40- a jukebox name with were in the crosshairs of U.S. “OraclehastheiracttogetherbetterthanSAP” U.S. Military (Eur.) $2.20 foot steel statue of his hit, “Folsom regulators. Aneel Bhusri, Workday CEO Johnny Cash and Prison Blues,” the The timing is significant in other art planned Johnny Cash city is embracing its light of two milestones Volks- for the trail might link to the Man in wagen faces in its emissions- glorify the prison. A correc- Black and its prison in a big cheating scandal this week. On tions official wondered if bike way. Thursday, it is due to submit a Midsize and large scale Enterprise Fusion ERP Cloud customers. racks and benches could en- The 2.5-mile Johnny Cash Please see VW page A2 s Copyright 2016 Dow Jones & courage loitering. Trail, scheduled to be com- oracle.com/modern-finance or call 1.800.ORACLE.1 Company. All Rights Reserved It would be enough to give plete by summer 2017, will in- Heard on the Street: A deal Copyright © 2016, Oracle and/or its affiliates. All rights reserved. any municipal parks and recre- Please see FOLSOM page A2 won’t end the drama...... B8 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 A2 | Thursday, April 21, 2016 ** THE WALL STREET JOURNAL. WORLD NEWS Canada Does the Global Economy a Favor

anadians think of tion where countries will As an example for the rest C themselves as model end up worse off by pursu- Canadian Exceptionalism of the world, this goes only global citizens, ing their own interest than so far. Infrastructure is the While other countries are trying to rein in deficits, Canada is boosting its own to stimulate growth. whether training troops in by cooperating. Central safest sort of stimulus since Iraq or settling refugees at banks in the eurozone and Interest rates are close to zero... …but Canada's debts* are low... …so it is boosting its deficit.* it is temporary and raises home. That civic-minded Japan have cut interest rates Central bank interest rate targets Debt to GDP ratio Deficit as a percentage of GDP long-term growth (and thus spirit has now spread to eco- into negative territory, for 6% 80% 3% the ability to repay debt). nomics, as Canada pursues a instance, in what others Even heavily indebted coun- mix of monetary and fiscal claim is an attempt to tries like the U.S. could jus- policy that helps the world cheapen their currencies to 5 Canada Germany tify such spending given the U.S. 0 as much as itself. bolster exports and infla- U.S. 60 historically low level of inter- Last month, Prime Minis- tion. 4 Eurozone est rates. Canada ter Justin Trudeau’s Liberals A new paper by Gauti Eg- –3 But just 42% of Canada’s introduced a gertsson and Neil Mehrotra stimulus over the next two budget that of Brown University and 3 40 Germany years goes toward infra- sharply boosts Larry Summers of Harvard structure. Most of the rest –6 U.S. spending on a University warns that such goes to expanded social 2 raft of initia- actions become a zero-sum Canada transfers such as child bene- tives from in- game in “secular stagna- 20 fits, unemployment insur- –9 CAPITAL frastructure to tion,” when interest rates 1 ance and old-age pensions. ACCOUNT social benefits. are near zero and central All are permanent obliga- GREG IP Because of that banks can no longer restore Projections Projections tions and some at the mar- fiscal stimulus, full employment. Instead, 0 0 –12 gin may discourage work. the Bank of easier monetary policy ’05 ’07 ’09 ’11 ’13 ’15 ’05 ’07 ’09 ’11 ’13 ’15 ’17 ’19 ’21 ’05 ’07 ’09 ’11 ’13 ’15 ’17 ’19 ’21 Canada, with its pristine bal- Canada has refrained from works mostly by bolstering ance sheet and manageable cutting interest rates, help- exports and dampening im- *Debt and deficit are federal only except Germany which is total government pension burden, can easily ing send the Canadian dollar ports, inflicting “negative Sources: J.P. Morgan (interest rates); Canada Department of Finance, Congressional Budget Office, International Monetary handle it; not so the U.S., sharply higher. externalities”—collateral Fund (government debt and deficits) THE WALL STREET JOURNAL. much less Japan. The higher dollar will be damage—on a country’s a drag on Canada’s trade trading partners. whether the world is in bad herited an economy laid low nated stimulus equal to 1% olitics also matter. For sector, diluting the budget’s By contrast, the three ar- enough shape to require by sinking commodity to 1.5% of GDP. P Mr. Trudeau’s Liberals, stimulative impact. But Can- gue, fiscal stimulus has posi- such coordinated fiscal ex- prices, he also inherited the Canada listened. “We fiscal stimulus dove- ada’s loss is the world’s gain. tive externalities. Increased pansion. Unemployment in means to deal with it. Can- were influenced by what we tails neatly with a prefer- In fact, Canada is faithfully borrowing puts upward most big countries (though ada’s federal debt, at just heard from the IMF and ence for bigger government. executing the formula that pressure on interest rates not Canada) is falling. Less 31% of gross domestic prod- OECD and around the table That’s a big part of why the finance ministers and cen- and the currency, drawing in debatable is that if anyone is uct, is the lowest in the at the G-20,” says Bill conservative parties that tral bankers from the top 20 imports. By pushing interest going to lead the way, it Group of Seven leading in- Morneau, Canada’s finance control Britain, Germany and economies agreed to pursue rates higher, it restores should be Canada, long an dustrialized nations. minister, in particular the the U.S. Congress don’t want at their just-concluded meet- some of the potency that exemplar of astute macro- The International Mone- greater potency of fiscal pol- to go there. ings in Washington: namely, monetary policy loses when economic management. In tary Fund, the Organization icy when monetary policy is Making the rounds last rely less on monetary and rates hit zero. The problem, the early 1990s, Canada had for Economic Cooperation constrained by interest rates week in Washington, Mr. more on fiscal policy to reju- they note, is that fiscal stim- one of the developed world’s and Development and the near zero. Morneau was happy to hold venate growth. The problem ulus is less attractive to any biggest debt burdens. Years U.S. Treasury Department Stimulus measures are out Canada as an example is that Canada is virtually one country precisely be- of austerity brought it down, for the past year have urged expected to add 0.5 percent- for the world, but he wasn’t alone in being both willing cause its benefits are shared with the help of a cheap Ca- any country not drowning in age point to growth over the counting on that being and able. with others. If countries co- nadian dollar and expanding debt to stimulate their econ- next two years, while the enough to inspire anyone to The global economy to- operated to “achieve more trade surplus that filled the omies by borrowing. The budget balance will swing follow. day resembles what game significant fiscal expansion,” gap left by shrinking govern- IMF this month recom- from a slim surplus last year “We’re Canadian,” he theorists call a collective ac- everyone would grow faster. ment spending. mended the G-20 stand to a deficit of 1.5% of GDP by said. “We have more humil- tion problem. This is a situa- It’s a matter of debate So while Mr. Trudeau in- ready to implement coordi- next year. ity than that.”

that certain of its diesel-pow- gine were unable to meet U.S. wagen has installed test recog- VW ered engines were rigged to and European Union emissions nition into the engine control cheat, and from that point cov- targets while staying on budget software (a so-called defeat de- ered their tracks. and schedule, the brief says. vice).” ContinuedfromPageOne Volkswagen’s account is very In November 2006, the engi- Mr. Gottweis’s memo, re- proposal to fix nearly 600,000 different. In public statements, neers tweaked the EA 189’s con- viewed by The Wall Street Jour- cars in the U.S. to a federal sworn testimony and recent trol software to cut NOx emis- nal, was first reported by the judge in California. On Friday, court filings, it maintains low- sions only during lab tests. Just Bild am Sonntag newspaper in Volkswagen’s board of directors level engineers rigged the en- a few changes to the about Germany. Volkswagen con- is to review the company’s in- gines to meet U.S. nitrogen-ox- 15,000 lines of software algo- firmed its authenticity. vestigation of the scandal, but ide emissions standards during rithms made the engines com- It has fed speculation that under pressure from the Justice laboratory testing. The rigging pliant with U.S. emissions test- Volkswagen tried to cover up Department may keep the re- allowed much higher emissions, ing, according to the brief. the diesel fraud. port confidential. and better performance, during No additional approvals or “If it looks like a duck and Its shares jumped 6.8% to normal driving. The engineers funding was needed, letting the walks like a duck, what do you €121.25 ($136.95) in Frankfurt kept their superiors in the dark, engineers evade detection for a think it is?” asks Michael Haus-

on Wednesday as investors re- the company insists. Once U.S. decade, it says. NICK UT/ASSOCIATED PRESS feld, a class-action lawyer acted to reports a settlement authorities began investigating, Volkswagen says in the court Volkswagen shares jumped on news of a potential U.S. settlement. among several appointed to co- with U.S. authorities might be the engineers lied until forced filing that top managers only ordinate a civil lawsuit in Cali- close. The ultimate costs of the to come clean in September learned of elevated NOx emis- The following week, Stuart plain, but the Volkswagen exec- fornia on behalf of Volkswagen remedies sought by authorities 2015, Volkswagen says. sions in some U.S. diesel models Johnson, head of Volkswagen’s utive broke off contact. car owners. could run into the billions of No evidence linking current on May 15, 2014, when a study Environment and Engineering Volkswagen sent Bernd Gott- According to Volkswagen’s dollars. or former top executives to the conducted by the International Office in Auburn Hills, Mich., weis, a quality-control officer German court brief, only in May For investigators now recon- cheating has emerged. Council on Clean Transporta- received a copy of the Brussels known inside Volkswagen as 2015—more than one year after structing events that culmi- Volkswagen’s account, pre- tion, the California Air Re- presentation. Specifics of cars “the fireman,” to the U.S. to un- the first email exchange—did nated in a Sept. 18, 2015, disclo- sented in a 113-page brief filed sources Board and West Vir- tested weren’t disclosed. On derstand the “diesel issue.” Volkswagen’s auditors suspect sure by the Environmental with a German court in Febru- ginia University was published. April 8, Mr. Johnson contacted On May 23, then-CEO Martin an illegal device manipulated Protection Agency and Califor- ary and reviewed by The Wall But Volkswagen knew more an ICCT analyst. “Can you Winterkorn received a memo emissions tests. But their inves- nia authorities of Volkswagen’s Street Journal, begins on Nov. than a month earlier that CARB please identify which cars are from him. tigations were blocked by en- emissions fraud, the email is 22, 2005. was looking closely at its diesel Volkswagen group products?” “No plausible explanation for gine-development engineers the start of two conflicting ver- That is when Volkswagen’s vehicles in the U.S. he asked in the email, reviewed the dramatically increased NOx who “stonewalled” and misled sions of the story. product strategy committee ap- Results of the trio’s study by The Wall Street Journal. emissions can be given to the investigators, according to the In one—the version put forth proved funds to develop a new had been presented on March The ICCT analyst told Mr. authorities,” Mr. Gottweis German court brief. by plaintiffs suing Volks- “clean diesel” engine, the EA 31, 2014, at a conference in San Johnson that a Volkswagen wrote, adding: “It is to be as- On Sept. 3, 2015, Volkswagen wagen—the email suggests 189, the centerpiece of its diesel Diego, Calif., and in Brussels to Jetta and Passat were the cars sumed that the authorities will executives conceded to U.S. offi- Volkswagen’s top management push in the U.S. a working group of the Euro- with elevated NOx emissions. subsequently examine VW sys- cials that their diesel vehicles knew by April 2014 or earlier Engineers developing the en- pean Commission. He asked Mr. Johnson to ex- tems to determine if Volks- deployed defeat devices.

There have been other hic- be too much Johnny Cash blar- of 77,000, which besides the FOLSOM cups. At one point, someone ing all the time,” said Mr. zoo touts a historic downtown suggested a statue of Mr. Cash Romo, 41. among its attractions. on horseback, with a cowboy Mr. Cash’s longtime man- On a recent afternoon, two ContinuedfromPageOne hat. ager, Lou Robin, said Mr. Cash Swiss visitors pulled up to the clude faux guard towers, 7-foot “I don’t think he was com- “would be flattered people prison gates in a rental car. guitar picks and a prison cell- fortable in hats,” said Cindy want to pay tribute to him and David Roth, 30, and Yannick like sculpture made of giant Cash, 57, one of the singer’s his music and do something Gauch, 21, wanted to see Fol- guitar necks. five children. “And he was ter- like this.” somaspartofaWesternU.S. The path, winding through rified of horses.” Mr. Cash “wanted to give tour. oak-covered hills, will offer That idea was scrapped. [inmates] hope when they got “Of course,” said Mr. Roth, scenic views of the 136-year- Besides penning a song out there would be something “we listened to ‘Folsom Prison old penitentiary surrounded about Folsom Prison, Mr. Cash in the outside world,” Mr. Blues’ when we drove here.” by granite walls—from a dis- performed before inmates Robin said. tance. there in a 1968 concert that It isn’t the first time the THE WALL STREET JOURNAL. “Their chief concern is con- revived his career. Inmates idea of honoring Mr. Cash has Europe Edition ISSN 0921-99 traband,” said Mr. Goss of gathered in the Folsom cafete- come up here. The News Building, 1 London Bridge Street, London, SE1 9GF prison officials. “They don’t ria cheered when Mr. Cash A new species of black ta- want the trail so close some- opened the concert with the rantula recently found near Thorold Barker, Editor, Europe Bruce Orwall, Senior Editor, Europe one could throw something lyrics: “I hear the train a the prison was named after Cicely K. Dyson, News Editor, Europe over the wall.” comin’, it’s rollin’ ’round the him, called Aphonopelma Margaret de Streel, International Editions Editor Darren Everson, Deputy International Editor To ensure hikers and bikers bend…” johnnycashi. In a 2008 city have their fun without break- The city’s association to the contest to name a new bridge, Joseph C. Sternberg, Editorial Page Editor ing prison rules, bright yellow song still draws visitors. They there were so many entries for Anna Foot, Advertising Sales signs will warn people to stick often ask if you can hear the Johnny Cash, officials set up a Jacky Lo, Circulation Sales Stuart Wood, Operations to the trail: “CALIFORNIA train whistle from the prison, separate category for them. Jonathan Wright, Commercial Partnerships STATE PRISON PROPERTY. NO said Mr. Brown, who now runs But the city council nixed Katie Vanneck-Smith, TRESPASSING.” a museum dedicated to the the Cash name, citing rules Global Managing Director & Publisher “If there was a concern of prison. Answer: yes, but only that the bridge—which ended security, we would not agree from a miniature train at the up as Folsom Lake Crossing— Advertising through Dow Jones Advertising Sales: Hong Kong: 852-2831 2504; Singapore: to it,” said Jeffrey Callison, local zoo. couldn’t be named after a per- 65-6415 4300; Tokyo: 81-3 6269-2701; Frankfurt: 49 69 29725390; London: 44 207 spokesman for the California CITY OF FOLSOM Most of the winning designs son. 842 9600; Paris: 33 1 40 17 17 01; New York: Department of Corrections A rendering of a planned sculpture of Johnny Cash for the trail, for the art installations At that time, Mayor Steve 1-212 659 2176 and Rehabilitation. The 1,200- which will wind through the grounds of Folsom State Prison. planned for the trail came Miklos said he was uncomfort- Printers: France: POP La Courneuve; Germany: acre property also includes a from Adan Romo, a Sacra- able tying the city so closely to Dogan Media Group/Hürriyet A.S. Branch; Italy: women’s prison and a separate prison guards and advises visi- She told the city she is also mento sculptor. the prison. “Our city is much Qualiprinters s.r.l.; United Kingdom: Newsprinters (Broxbourne) Limited, Great Cambridge Road, facility for men. The trail will tors not to wander off. “People worried about a 90-foot pe- Eight pieces of art were ap- more than a prison that Waltham Cross, EN8 8DY; connect two legs of a longer shouldn’t get the idea they can destrian and bike tunnel under proved, including a 12-foot Johnny Cash played and sang Registered as a newspaper at the Post Office. system. go hide in the woods out the prison entrance road “Ring of Fire” made of stain- at,” Mr. Miklos said of the city Trademarks appearing herein are used under license from Dow Jones & Co. Bicyclists and hikers on the there,” he said. “shielded from viewing from less steel guitar picks designed ©2015 Dow Jones & Company. All rights reserved. new route will pass through Art plans are still being most vantage points.” Plans to shimmer as if ablaze. Editeur responsable: Thorold Barker M-17936- 2003. Registered address: Avenue de Cortenbergh woods where retired Fol- worked out. Deborah Hysen, call for lighting and motion Another will consist of 10- CORRECTIONS 60/4F, 1040 Brussels, Belgium som guard Jim Brown said he director of facility planning, sensors, but Ms. Hysen has foot steel bars, which from one used to help chase down es- construction and management asked for cameras and police angle will show Mr. Cash’s AMPLIFICATIONS NEED ASSISTANCE WITH YOUR SUBSCRIPTION? caped prisoners. “They for the prison system, said the monitoring. face. A smart app will help vis- Readers can alert The Wall Street wouldn’t get far,” he said. art installations weren’t con- Mr. Goss said he is hopeful itors navigate. Journal to any errors in news By web: http://services.wsje.com Mr. Goss said the entire sidered part of the original those issues will be worked “I originally thought speak- articles by emailing By email: [email protected] [email protected]. By phone: +44(0)20 3426 1313 property is monitored by deal. out. ers, but I thought that could 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 THE WALL STREET JOURNAL. Thursday, April 21, 2016 | A3 WORLD NEWS Hundreds Feared Dead in Mediterranean

Shipwreck last week the distance far greater. yan coast. The EU patrols were The condition of the involved in rescuing more than off coast of Libya boats plying the Libyan route a third of the 154,000 people comes as fewer try to has deteriorated over the past pulled from the water last year couple of years as they grow on the Libya-Italy route. make it to Greece scarcer and the smugglers in- Political chaos in Libya has creasingly brutal. More people helped fuel the flow of mi- Hundreds of migrants were are packed onto boats that of- grants; the country now has feared drowned after their ten begin taking on water just one of the world’s largest peo- overcrowded boat sank off after embarking, according to ple-smuggling industries. Libya’s coast, aid agencies said Italian officials. Would-be migrants and refu- Wednesday, in what would be Following the October 2013 gees pay traffickers thousands the deadliest disaster involv- shipwreck that killed at least of dollars to undertake the ing people trying to reach Eu- 360 African migrants, Italy harrowing voyage to Europe. rope this year. launched a search-and-rescue In all, 3,771 people died or operation that pulled tens of went missing trying to reach By Tamer El-Ghobashy thousands of migrants from Europe in 2015, while a record in Cairo and the Mediterranean. one million people reached the Manuela Mesco in Milan In late 2014, new EU patrols continent’s shores, mainly via took over in an operation Greece and Italy, the UNHCR The wreck is likely to refo- dubbed Triton. The mission was said. cus attention on the perilous much smaller in scope—limited So far this year, about Libya-to-Italy route, where to within 30 miles off the Ital- 179,000 migrants have arrived

traffic has surged in recent NIKITAS KOTSIARIS/EUROPEAN PRESSPHOTOian AGENCY coast—which left the Ital- in Europe by sea, according to weeks as the weather warms Members of the coast guard helping migrants to disembark at the port of Kalmata on Sunday. ians still on the front line in re- the IOM. Until the latest ship- and as the flow from Turkey to sponding to distress calls from wreck, 737 had gone missing or Greece dwindles in the wake of Libya last week from the east- According to the IOM, that “The people died in a mat- migrants outside that bound- died, with the number roughly European Union pressure. ern city of Tobruk, but their larger vessel—the origins of ter of minutes,” an Ethiopian ary. Italian officials and aid or- evenly divided between Italy The EU expanded its naval accounts differed. which aren’t known—was al- man told IOM staff, according ganizations said Triton’s lim- and Greece, it said. patrols in the Mediterranean Survivors told the UNHCR ready overcrowded with about to the aid group. “I saw my ited mandate meant more lives More than 6,000 refugees last year in another bid at de- that between 100 and 200 peo- 300 people. Once the new wife and my 2-month-old child were lost because of delays in and migrants have arrived in terrence but critics say they ple left Libya aboard a 98-foot group was on board, it began die at sea, together with my reaching boats in distress. Italy so far this month, accord- remain inadequate to the enor- boat. Migrants told the IOM, sinking, the IOM said. brother-in-law.” After some 800 people died ing to the UNHCR. Officials mous challenge. however, that about 200 mi- Some passengers attempted The Libya-Italy route has in the sinking of another boat fear more will seek to enter via Forty-one survivors were grants were traveling on sev- to return to the smaller boats. been overshadowed by a surge off the Libyan coast in April Italy following last month’s rescued on Saturday by a mer- eral small boats carrying up to The 41 rescued—from Egypt, in migrants entering Europe 2015—the single deadliest epi- EU-Turkey deal, although they chant ship and transported to 40 people each. Sudan, Somalia and Ethiopia— via Greece since last summer, sode in the flood of migrants haven’t yet seen such flows the Greek port of Kalamata, ac- In accounts provided to managed to board one that hoping to move on to richer trying to reach Greece and It- materialize. cording to accounts given to both agencies, the migrants was adrift for three days with- Northern European countries aly in recent years—Triton was Under that deal, all mi- the U.N. High Commissioner for said that after traveling for out food or water before the such as Germany and Sweden. expanded into a full-blown grants crossing the sea to Refugees and the International several hours, the smugglers Filipino merchant vessel Deaths on the Libya-Italy search-and-rescue mission. Greece are to be returned to Organization for Migration. then attempted to transfer the picked them up, according to route tend to be higher than The Italians can currently Turkey. The survivors told both passengers onto a larger vessel the IOM. The witnesses said the Turkey-Greece route be- call Triton’s nine ships up to —Valentina Pop in Brussels agencies that they departed in the middle of the sea. most of the others died. cause the boats are bigger and 24 nautical miles off the Lib- contributed to this article. EU Says Migration Drops Under Deal With Turkey BY VALENTINA POP man Chancellor Angela Merkel Minister Ahmet Davutoglu protest of the EU-Turkey deal. was aimed at discouraging peo- warned that his country won't ASlowerFlow The commission is pressing BRUSSELS—The number of ple smuggling and cutting off stick to the migration deal if Migrant arrivals have dropped signiﬁcantly under Europe's Greece to accelerate asylum pro- migrants arriving from Turkey the main migrant trail on which the EU doesn’t grant Turkish deal with Turkey, which aims to cut off the migrant trail and cedures, so that migrants spend decreased sharply under a over one million migrants ar- citizens visa-free travel by the stop the smuggling trade. as little time as possible on the controversial deal with the Eu- rived in Germany and Scandina- end of June. islands before being sent back. ropean Union, the European vian countries last year. The commission on Arrivals to the Greek Islands “The expectation is to reach Commission said Wednesday, In the three weeks after Wednesday said it could rec- Running seven-day total by mid-May the capacity to though the future of the March 20, 5,847 migrants ar- ommend on May 4 that EU 60,000 process around 200 cases a agreement remains unclear. rived, compared with 26,878 governments grant the change, day,” it said. The assessment comes a in the three prior weeks, the provided Ankara meets all 50,000 Even with the EU-Turkey month after the EU and Turkey commission said. conditions, which include deal working, the commission agreed that Turkey would take Of the people who arrived making improvements to the is warning that alternative 40,000 back all migrants, including on the islands after the deal Turkish asylum system, adopt- March 20, 2016 routes could emerge for mi- Syrian refugees, who arrive in came into force, 325 have so ing a controversial data pro- EU-Turkey Deal grants to reach the bloc. Greece in return for €6 billion far been returned to Turkey tection law and cooperating 30,000 cut-off date The commission flagged the ($6.8 billion) in EU aid over and more are expected to be with the bloc’s law-enforce- Libya-Italy route—which has the next three years and the returned, according to the ment agencies. 20,000 already seen an increase in the possibility that Turkish citi- commission. In return, EU The change is controversial number of arrivals—as well as zens could travel visa-free to countries have received more in many countries, including 10,000 land routes out of Turkey via the bloc as of the end of June. than 100 Syrian refugees di- Germany, France and the U.K., Greece and Bulgaria and out of The commission said it rectly from Turkey, as they where migration is a crucial Greece via Albania and Bul- 0 could recommend the visa seek to replace illegal migra- factor in a June 23 referendum garia, and a sea route between change in May, but it has to be tion with legal resettlement. on whether the country should Oct. 2015 Nov.Dec. Jan. 2016 Feb. March April Greece, Albania and Italy. approved by EU govern- “The message is starting to stay in or leave the EU. Source: UNHCR THE WALL STREET JOURNAL. Other routes via the Black Sea, ments—a potentially tough po- get through that turning to The migration deal has been Ukraine, Russia, Finland and litical step in many countries smugglers is the wrong choice criticized by humanitarian aid overcrowded detention camps ganization helping migrants Norway are also possible, but where migration is a hot-but- to make,” said commission Vice organizations, notably for put- on the Greek islands before be- with medical services, said it no significant migrant shifts ton issue. President Frans Timmermans. ting families with children and ing sent back to Turkey. Doc- pulled out of all detention have yet been detected, the The deal championed by Ger- On Tuesday, Turkish Prime unaccompanied minors in tors Without Borders, an or- camps on the Greek islands in commission said.

tioning the Russian buildup. SYRIA The White House declined to A Culture WarOver Dresden’s Image comment on the new intelligence. Russian officials in the One of Germany’s top fine-arts scenes confronts the city’s anti-Islam movement ContinuedfromPageOne U.S. didn’t immediately re- U.S. concerns about the spond to a request for com- Russian military movements, ment. BY ZEKE TURNER which have caused the ruble and the negative impact they After the partial cease-fire to tank, as a more plausible could have on the cease-fire took effect in late February, DRESDEN—On a recent explanation for the decline. and political negotiations in U.S. intelligence agencies night, hundreds of protesters There were more than Geneva, prompted President tracked the movement of Rus- were calling for foreigners to 200,000 Russian visitors to Barack Obama’s call to Russian sian artillery units south to leave Germany, waving anti- the State Collection in 2014 President Vladimir Putin on areas where the Assad regime Muslim banners, and singing but 40% fewer last year, ac- Monday, officials said. at the time was fighting Is- the national anthem in the cording to the Collection’s Josh Earnest, the White lamic State militants, particu- Theaterplatz, a square sur- records. House press secretary, used larly in the Tadmur and Pal- rounded by this city’s august “They’re all looking for a unusually blunt language in myra areas. temples of high culture. scapegoat,” said Lutz Bach- describing the exchange be- Russian troops directly op- Within spitting distance, mann, co-founder of the tween the two leaders, calling erate the artillery pieces, which concertgoers were filing into Pegida movement, who ap- it an “intense conversation.” have been used with devastat- the Semper peared in court in Dresden Russian officials have ing effect on the battlefield REPORTER’S Opera to on Tuesday to face charges voiced support for the partial since last year, according to JOURNAL hear Baroque for hate speech based on cease-fire and the United Na- U.S. officials. Russia has also

music per- MEHMET KAMAN/ANADOLU AGENCY/GETTYFacebook IMAGES comments in which tions-mediated negotiations in deployed advisers to support formed by an Thousands of supporters of the anti-Islam movement Pegida he called migrants “scum- Geneva, both in public and in the Assad regime in its military orchestra that dresses in demonstrated on Dresden’s famed Theaterplatz last fall. bags,” “animals” and “trash.” private settings, according to campaign, officials said. white tie and ranks among As for the neo-Nazi repu- U.S. officials. About two weeks ago, U.S. the world’s 10 finest. a-half, Dresden has also been suffered a 6.5% decline in to- tation hanging over the city, Citing widening attacks by intelligence agencies began to “People come to experi- the headquarters of the pop- tal ticket sales last year, or “the press is to blame,” Mr. government forces, represen- detect the redeployment of ar- ence art,” not to confront a ulist movement Patriotic Eu- €750,000 ($854,000) in lost Bachmann said. tatives of the main opposition tillery units to areas near the bristling, flag-waving mob, ropeans Against the Islam- revenue. German visitors Dresden’s fine-arts com- broke off the latest round of northern city of Aleppo, the said Wolfgang Rothe, the ization of the West. Known made up a big part of the munity is at a loss about indirect talks on Monday. Gov- opposition stronghold, and in- managing director of the op- by its German acronym, drop, according to Managing how to turn the tide. The ernment forces have stepped side Latakia province, near era. “Our public feels uncom- Pegida, it combines a hostil- Director Dirk Burghardt. “It’s museums and opera have put up attacks in some areas in where government forces have fortable.” ity toward Muslim immi- caused by, you could say, the out colorful flags with slo- northern and central Syria in been gathering, according to a These days a culture war grants, the press and main- new reputation,” he said. gans such as “Eyes open. recent days, and one opposi- senior U.S. defense official. is playing out in the Saxon stream politicians with The State Collection in- Doors open. Hearts open.” tion negotiator on Tuesday de- The Russian artillery move- capital, pitching one of Ger- admiration for Russia Presi- cludes Raphael’s Sixtine Ma- They have staged exhibitions scribed the truce as over. ments have increased in re- many’s most rarefied art and dent Vladimir Putin—who donna, the second-most pre- and performances that ad- Still, the cease-fire, which cent days, raising U.S. alarm cultural scenes against its was stationed in Dresden as cious stone in the world and dress racism. In December began Feb. 27, has held far about Moscow’s intentions, most notorious populist a Soviet spy. A speaker at the archive of painter Ger- 2014, the neoclassical opera longer than officials in Wash- the official said. movement. one of the Pegida rallies, hard Richter, Germany’s house began turning off its ington and in the region had U.S. intelligence agencies The prize: The reputation which take place every Mon- most renowned living artist. lights on Monday nights to expected. It has reduced the have indications that some of of Dresden, the city Germans day, lamented the closure of Tourism more broadly has keep Pegida from gaining overall level of violence in the newly-redeployed artillery call their Florence. De- concentration camps. Others fallen off in the city. The gravitas by using it as a Syria and brought about at pieces have been used in re- stroyed during World War II have referred to people such number of nights spent by backdrop in photographs. least a temporary pause in the cent days in support of gov- and restored to its past as Jewish financier George German tourists slid more But to Frank Richter, the proxy fight between Russia, ernment forces, particularly grandeur, the city is known Soros as “puppet masters.” than 5% last year, according director of the State Office which has supported the in clashes with the Nusra across Germany and beyond The city’s establishment to Dresden Marketing GmbH, for Political Education in Assad regime, and the U.S., Front, al Qaeda’s affiliate in as a pinnacle of architectural says the fallout from the the city’s official promo- Saxony, the art world is which has supported the mod- Syria. and artistic refinement. It is protests and Dresden’s asso- tional organization. bringing the equivalent of a erate opposition. Both the Nusra Front and also a rare story of economic ciation with Pegida has been Pegida says it isn’t to knife to a gunfight. “This is Mr. Obama and White Islamic State were excluded renaissance in the country’s massive. Dresden’s State Art blame for the drop in visi- high culture,” he said. “It has House officials have warned in from the cease-fire brokered former Communist East. Collection, an array of muse- tors and points to Germany’s no chance of changing any of recent days that the cease-fire by the U.S. and Russia in But for the last year-and- ums near the Semper Opera, sanctions against Russia, this.” could collapse, without men- February. 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 A4 | Thursday, April 21, 2016 HK JP KO ML SI IN UK FR MN PR THE WALL STREET JOURNAL. WORLD NEWS Europe Proposes Fiscal Leeway for Antiterror Costs BY VALENTINA POP threat on the Continent remains high, particularly since BRUSSELS—The European several Syria-trained Europe- Commission signaled it may ans are moving back to Europe exempt the costs of extra to mount attacks. counterterrorism measures in- According to the commis- curred by individual member sion, of the 4,000 foreign countries from the bloc’s bud- fighters who went from EU get deficit calculations. countries to Syria, “around Under the bloc’s fiscal 30% have returned to their rules, European Union govern- home countries,” some with ments need to observe a bud- instructions to carry out more get deficit not larger than 3% attacks in Europe. of the country’s gross domes- “The first priority is for na- tic product or face sanctions. tional authorities to be in- On Wednesday, the commis- formed of movements of for- sion announced a raft of new eign terrorist fighters, both measures to be proposed in outgoing and incoming, and to coming months to deal with share such information with the terrorist threat in Europe, each other and with EU agen-

JOHN THYS/AGENCE FRANCE-PRESSE/GETTY IMAGES including the exemption from cies,” the commission said. Alexander Grushko, Russia’s envoy to NATO, said the U.S. has rebuffed overtures to modernize agreements on military interactions. the EU budget-deficit rules. It notes that several of the “Protection comes with a measures it proposed last year cost, be it in terms of deploy- still need approval from na- ment of intelligence, law en- tional governments and the NATO, Russia Discuss Rifts forcement or armed forces or European Parliament, notably of reinforcement of infrastruc- screening EU citizens against tures,” the commission said. security databases on their Officials say first allies and Russia hold very dif- Moscow to modernize agreeing for a withdrawal of Rus- “In light of the severity of way in and out of the bloc. meeting since 2014 ferent views. But we have lis- ments on safe interactions be- sian weapons and Mr. Grushko the threat currently faced by tened to what each other had tween the two militaries. pressing for Ukraine to make the EU, the commission will The commission is was constructive, but to say.” “Our aircraft were acting constitutional changes giving propose to make use of the NATO officials emerged fully in line with our agree- more autonomy to the east. flexibility embedded in the proposing excluding no pacts were sealed from the meeting with a mea- ments,” Mr. Grushko said. The The cease-fire brokered in Stability and Growth Pact to sure of hope that military-to- basic issue was why a de- early 2015 reduced the level of accommodate unusual events some security costs BY JULIAN E. BARNES military communications be- stroyer equipped with cruise violence in east Ukraine, but outside government control from deficit rules. AND PAUL SONNE tween Moscow and the alliance missiles with a range of 1,550 the conflict has persisted on a when considering additional could be revived in the name miles that could be nuclear, low simmer, leaving hundreds fiscal expenditure directly re- BRUSSELS—Ambassadors of minimizing the possibilities came so close to Kaliningrad, dead since the pact’s signing. lated to this threat,” it added. The commission later this from Russia and the North At- of armed confrontation. he added. Most of the peace agreement The EU executive said it year plans to revise the rules lantic Treaty Organization met Wednesday’s meeting fol- The meeting was the first has gone unfulfilled. would employ this flexibility for the bloc’s security data- on Wednesday for the first lowed a series of incidents in since June 2014, when NATO The pact called for both when it assesses members’ na- base, the Schengen Informa- time in nearly two years, amid the Baltic Sea, as Russian air- suspended cooperation after sides to withdraw heavy mili- tional spending plans in May. tion System, or SIS, to better rising military tensions be- craft intercepted and buzzed a Russia’s intervention in Ukraine. tary equipment, and some was Similar exemptions have been track potential terrorists and tween Russia and the U.S. U.S. Navy destroyer and a U.S. In the meeting—and speak- indeed removed from the front deployed before, such as for to use facial images for bio- While there were no agree- Air Force reconnaissance ing with reporters after—Mr. lines. countries’ exceptional costs metric identification. ments, officials described the plane, which American and Grushko said NATO was mili- A U.S. defense official, how- incurred because of the migra- Several of the Paris and meeting as constructive and NATO officials have called tarizing the Baltic region. ever, said the Pentagon has tion crisis, for their contribu- Brussels attackers were substantive. The meeting in- dangerous and unprofessional. NATO officials said it was seen about 1,000 pieces of tions to an EU-Turkey migra- flagged in the SIS database, cluded back-and-forth dialogue During the meeting, offi- Russia’s aggression in Ukraine heavy military equipment flow tion deal and for their but they used fake passports between the two sides, and ran cials said, U.S. Ambassador that compelled the alliance to across the Russian border into contributions to an EU-wide and managed to travel unde- for some 3½ hours, far longer Doug Lute pressed the Rus- begin reinforcing the east. the Donbas region in the past investment fund. tected. By mid-2017, the sys- than scheduled, a sign, offi- sians about the incident and “Everything NATO does in 12 months. The U.S. official France and Belgium tight- tem should also include a cials said, of frank dialogue. the potential for a dangerous the Baltic region is propor- said Russian grad rocket sys- ened security in response to function allowing police to Nevertheless, officials from accident to occur. tional, it is defensive and it is tems and TOS-1 flame throw- recent attacks in Paris and search the database for finger- both sides said they outlined a After the meeting, Alexan- fully in line with our interna- ers remain inside the rebel- Brussels. France announced a prints of suspects. sharply differing understand- der Grushko, the Russian am- tional agreements,” NATO’s held territory. €3.8 billion ($4.32 billion) in- Several new measures to ing about the source of the bassador to the alliance, ques- Mr. Stoltenberg said after the The U.S. is moving ahead crease in military spending for tackle terrorism financing current conflict between Rus- tioned why U.S. forces were meeting. “We are responding with a $335 million package of the next four years, and Bel- were also announced. By June, sia and the Western allies. operating so closely to Kalinin- to the substantial military security and military aid for gium pledged an extra €400 the commission plans to black- “We had a frank and seri- grad, the Russian exclave that buildup by Russia.” Ukraine that U.S. Vice President million in security spending list countries outside the EU ous discussion,” NATO Secre- is home to a number of mili- Ambassadors also had a Joe Biden and Ukrainian Presi- for this year alone. where legislation is permissive tary-General Jens Stoltenberg tary bases. He also said the U.S. lengthy discussion of Ukraine, dent Petro Poroshenko agreed European security officials in terms of money laundering said after the meeting. “NATO has rebuffed overtures from with allied ambassadors push- on March 31 in Washington. have warned that the terror and terrorism financing. Ukraine Moves Closer ToVisa-FreeEUTravel BY LAURENCE NORMAN EU. Brussels would retain the power to restrict the number BRUSSELS—The European of people entering the bloc if Union’s executive formally it deemed the numbers too backed visa-free access for large. Ukrainians to the bloc, open- The European Commission ing the way for member states proposal will now need back- to debate the proposal. ing from all member states The commission said that and the European Parliament. Ukraine’s government, which There are signs that this has made visa-free access a process could be difficult and key political goal, has now lengthy, with a number of EU carried out all the necessary countries already dealing reforms to win Brussels’ back- with a migration crisis at ing. These included a series of home. The EU is also cur- anticorruption measures and rently negotiating what stepped-up efforts against or- would be an even bigger visa- ganized crime and border se- free agreement with Turkey curity. as part of a package of mea- “This is the result of the sures aimed at winning An- success of the Ukrainian gov- kara’s help in the migration ernment in achieving far- crisis. reaching and difficult re- Further complicating the forms…impacting on areas decision will be this month’s such as the rule of law and rejection by Dutch voters of a

justice reform,” said European separate political and trade TIHANGE/ZUMA PRESS commissioner for Migration, accord between the EU and Steam rose this month from the Tihange nuclear-power plant in Huy, Belgium, about 40 miles away from Aachen, Germany. Home Affairs and Citizenship, Ukraine. That could raise the Dimitris Avramopoulos, on cost to Prime Minister Mark Wednesday Rutte’s Dutch government of If the measure wins final backing Ukraine’s visa bid. Berlin Wants 2 Belgian Reactors Shut approval, Ukraine’s 42 million Ukrainian President Petro citizens would have the right Poroshenko has pushed hard BY GABRIELE STEINHAUSER show that Belgium takes the oversees safety at the nuclear safety. to travel visa-free for up to 90 for EU backing for Ukraine’s concerns of its neighbors seri- reactors, declined to comment. Germany, which is prepar- days in Europe’s border-free bid, presenting it as a key BRUSSELS—Germany asked ously.” Other neighboring coun- ing to shut down all of its nu- Schengen areas. They wouldn’t prize for his government’s Belgium to take two nuclear Jan Bens, director-general tries, including the Nether- clear power plants in the com- be permitted to work in the pro-Western policies. reactors offline because of of Belgium’s nuclear control lands, have also complained ing years, has challenged other safety concerns, setting up a agency FANC, rejected the about general safety standards neighboring countries over clash between neighbors that German safety concerns as un- at Belgium’s nuclear plants their continued reliance on pursue widely different energy founded. “We are still con- and questioned the govern- nuclear power for electricity strategies. vinced that there is no need to ment’s decision late last year generation. German Environment Min- shut down these units from a to extend the lifetime of the In March, Ms. Hendricks ister Barbara Hendricks said nuclear safety point of view,” country’s oldest reactors in asked France to take Fessen- Wednesday that an examina- he said. “Our conclusions re- Doel to 2025. In 2013, the pre- heim, another nuclear-power tion by Germany’s indepen- main unchanged, despite what vious Belgian government did plant close to the German bor- dent Reactor Safety Commis- Minister Hendricks says.” the same with another older der, off the grid. sion showed that there was FANC also said it was sur- reactor, Tihange 1. Neele Scheerlinck, a spokes- uncertainty that the reactors prised by the request, pointing Concerns have centered on woman for FANC, suggested Tihange 2 and Doel 3, which to continued cooperation and the 2012 discovery of thou- that Ms. Hendricks’s demand are located close to the Ger- information exchange with sands of tiny cracks in the to close down the Belgian re- man border, had the necessary German authorities. steel walls of pressure vessels actors may be part of a backup security systems to re- “Our German colleagues in some of the reactors at Doel broader political strategy to act to an accident. asked lots of questions, but and Tihange, which led to the get its neighbors to also aban- “That’s why I believe it is they didn’t raise any new is- affected reactors being taken don nuclear energy. “A case right to temporarily take the sues that we had not taken offline for some time. like this is a [convenient] plants off the grid, at least un- into account during our review Following an examination, point of entry” for Germany, til the examinations have been of the Doel 3 and Tihange 2 FANC decided to reopen the she said. concluded,” Ms. Hendricks safety cases,” Mr. Bens said. reactors, saying the cracks had —Monica Houston-Waesch

STEPHANIE LECOCQ/POOL/EUROPEAN PRESSPHOTO AGENCY said. “It would be a strong A spokeswoman for Bel- been there from the beginning in Frankfurt Petro Poroshenko, center, is pushing hard to strengthen EU ties. precautionary signal. It would gium’s interior ministry, which and didn’t affect reactor contributed to this article. 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 THE WALL STREET JOURNAL. Thursday, April 21, 2016 | A5 WORLD NEWS

a rise in interest rates will ulti- set to rise more slowly than he ZAMBIA on social media that foreign na- expanded police presence would World mately prove necessary, a Bank had expected. That in turn tionals were behind a spate of help protect immigrants and en- of England policy maker said. meant the inflation rate would Police Move to Stem killings in recent weeks that sure the security of Lusaka’s 2.5 Watch This month, the BOE’s nine- return to the BOE’s 2% target Anti-Immigrant Riots have left victim’s dismembered. million residents. member Monetary Policy Com- later than he had anticipated. The government deployed The attacks—which were fo- The ferocity of the riots has mittee voted unanimously to In a speech, Mr. McCafferty more than 1,000 riot police in cused mainly on Zambia’s large shocked Zambia, which has long leave its key interest rate un- said low inflation rates are keep- the capital as authorities sought community of Rwandan immi- been considered one of the more changed at a record low 0.5%, ing a lid on pay rises, since busi- to retain order after days of grants—quickly spread to several stable corners of Africa. where it has remained since nesses find it hard to raise their anti-immigrant violence that has suburbs as mobs ransacked for- Observers said the wave of UNITED KINGDOM March 2009. own prices to cover the cost of left at least five people dead eign-owned shops. Government violence now gripping the coun- Ian McCafferty was alone higher wages. and tarnished the nation’s image officials said at least five people try reflects how social tensions Central-Bank Official among MPC members in voting But he doesn’t expect wages as a haven for foreign workers have been beaten and burned to in some resource-rich African na- Is Hopeful on Wages for a rate rise from last August to be held back indefinitely, par- and investment. death since Monday, with more tions are being ignited as the Low inflation rates are holding through January. He abandoned ticularly when the inflation rate Violence erupted on Monday than a dozen hospitalized. commodity price crash perco- back wages in the U.K., but that that push in February as evi- starts to rise as oil prices in two impoverished suburbs of Zambia’s home-affairs minis- lates down to the streets. is likely to prove temporary and dence mounted that wages were steady.—Paul Hannon Lusaka after rumors circulated ter, Davis Mwila, said the heavily —Nicholas Bariyo

Watch Xavier Dolan’s exclusive interview at louisvuitton.com. 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 A6 | Thursday, April 21, 2016 THE WALL STREET JOURNAL. WORLD NEWS Obama Looks to Reassure Gulf Allies

President lands in and a handful of Saudi officials dent complained about Persian welcomed Mr. Obama as he Gulf allies, castigating nations Saudi Arabia for a emerged from the plane. that urge the U.S. to act but summit aimed at Meanwhile, King Salman are unwilling “to put any skin was greeting Gulf leaders at in the game” and calling them soothing strained ties another air base downtown. “free riders.” The Saudi monarch often per- The article also recounts a BY COLLEEN MCCAIN NELSON sonally welcomes visiting Arab conversation between Mr. leaders, but not always others. Obama and Australian Prime RIYADH, Saudi Arabia— The king didn’t see Mr. Obama Minister Malcolm Turnbull. President Barack Obama ar- until the president arrived at “Aren’t the Saudis your rived here Wednesday on a Erga Palace. friends?” Mr. Turnbull asked trip meant to provide reassur- There, the two publicly ex- the U.S. president. “It’s compli- ances to Gulf allies and to bol- changed greetings, with the cated,” Mr. Obama told him. ster his foreign-policy legacy. king saying that he and the Those comments added With just nine months left Saudi people “are very pleased pressure to an already stressed in office, Mr. Obama is aiming that you, Mr. President, are relationship. to steady what have become visiting us.” Mr. Obama “This is kind of an awkward rocky relationships in the re- thanked the monarch for his visit for Obama,” said David gion and to tackle such issues hospitality. Ottaway, a senior scholar in as the fight against Islamic Also in Riyadh on Wednes- the Middle East Program at State and countering Iranian day, U.S. Defense Secretary the Wilson Center in Washing- aggression. But in Riyadh, the Ash Carter reiterated Amer- ton. “I’m sure they’re going to president will find frustrated ica’s commitment to the secu- ask him what he means by allies who already have begun rity of Saudi Arabia and its these comments.”

to look ahead to the next ad- other Gulf allies, despite the CAROLYN KASTER/ASSOCIATED PRESS Administration officials say ministration. historic nuclear deal reached President Obama and King Salman after their meeting at Erga Palace in Riyadh on Wednesday. that the U.S. remains commit- Mr. Obama plans to spend between Iran and the U.S. and ted to supporting the security about 28 hours in the Saudi five other world powers in garding Iran’s behavior in the world, but now is confronting second term approaching, Mr. and the sovereignty of its al- capital, holding talks with King July. Mr. Carter said the U.S. region,” he said after meeting the prospect of a tense conclu- Obama is returning to the re- lies in the region. But they ac- Salman followed by a summit has agreed to more than $33 defense ministers of the GCC, sion to this chapter. gion with relations strained knowledge that the relation- with leaders of the six-nation billion in arms sales to Gulf which also includes Kuwait, During his first year in of- and expectations lowered. ship is complex. Gulf Cooperation Council. states since May. Oman, Bahrain, Qatar and the fice, Mr. Obama traveled to A stew of issues, including “Given how different our His arrival in Riyadh was “The United States shares United Arab Emirates. Cairo to deliver what was in- tensions surrounding the Iran two countries are, there are in- relatively low-key, lacking with our GCC partners the Mr. Obama’s trip, perhaps tended as a hopeful message, nuclear deal and conflicts in evitably going to be differ- much of the pomp and circum- view that even as the nuclear the last of his presidency to urging a relationship between Syria and Yemen, have contrib- ences that emerge,” said Ben stance that often greets Mr. accord verifiably prevents Iran the region, serves as a book- the U.S. and the Muslim world uted to the friction. So, too, Rhodes, a deputy national-se- Obama as he travels abroad. A from obtaining a nuclear end for an administration that based on mutual interest and has Mr. Obama himself. curity adviser to Mr. Obama. red carpet was rolled out on weapon, there are many more once sought a “new beginning” respect. In a recent interview in the —Ahmed Al Omran the tarmac for Air Force One, issues to be concerned with re- for the U.S. and the Islamic Now, with the end of his Atlantic magazine, the presi- contributed to this article. Norway Judge Rules Killer’s Rights Violated BY KJETIL MALKENES HOVLAND tion is strictly necessary and limited administrative oppor- Norway has violated mass tunity to complain.” She said killer Anders Behring Breivik’s that Mr. Breivik was “mentally human rights, a judge ruled on vulnerable” and that the Wednesday, a month after Mr. prison should be careful about Breivik testified in court that keeping him too long in isola- he had suffered inhuman and tion, although he seemed to degrading treatment in prison. have coped so far. Oslo District Court judge The court also found, how- Helen Andenæs Sekulic ruled ever, that the state’s denial to that by keeping him largely Mr. Breivik of visits, phone isolated from other prisoners contact and written corre- without sufficient measures to spondence with people sup- compensate for the effects of porting his extremist ideology that isolation, the Norwegian didn’t violate the human- state had violated part of the rights convention. European Convention on Hu- Norway’s attorney general man Rights. said that the court exaggerated “The prohibition of inhu- prison authorities’ ability to

FAREED KHAN/ASSOCIATED PRESS man and degrading treatment mix Mr. Breivik with other pris- Pakistani soldiers cordon off the area where gunmen attacked police who were protecting health workers offering polio vaccinations. represents a fundamental oners and that the court didn’t value in a democratic society. add enough weight on the mea- This applies no matter what— sures already taken to compen- also in the treatment of ter- sate for the segregation. Gunmen Attack Karachi Polio Drive rorists and killers,” she wrote in a 37-page verdict. BY QASIM NAUMAN which might have prevented didn’t mention polio workers, disease. In 2014, after the Mr. Breivik, a right-wing ex- Anders Behring the death toll being higher, po- but the group opposes the vac- World Health Organization de- tremist, was convicted in 2012 Breivik has largely ISLAMABAD, Pakistan—Un- lice spokesman Qamar Zaib cination program, and has clared polio in Pakistan an in- of killing 77 people the previ- identified gunmen killed seven Satti said. termed it an attempt to “de- ternational emergency, Paki- ous year in Norway’s worst been kept isolated police officers who were “These brave policemen feat Muslims politically and stan made polio vaccinations peacetime atrocity. He com- from other prisoners. guarding people conducting a died protecting the polio militarily.” mandatory. plained in court in March that polio drive in Pakistan’s larg- teams,” said Maj. Gen. Bilal The polio-vaccination drive Polio-vaccination teams op- Ila prison, where he was first est city, Karachi. Akbar, director general of in Karachi was suspended af- erate under the threat of vio- detained, and Skien prison, “We’re surprised,” said Eight attackers on four mo- Sindh Rangers, a paramilitary ter the shootings, local gov- lence in many parts of Paki- where he is now serving a 21- Marius Emberland, an attor- torcycles and armed with pis- force. “Their sacrifice will not ernment officials said. stan. Dozens of polio-drive year sentence, have violated ney at the Office of the Attor- tols targeted two teams in dif- be in vain.” Footage aired on local tele- team members and security the human-rights convention ney General. “In our opinion, ferent neighborhoods of the Jamaat-ul-Ahrar, a faction vision showed police and para- personnel have been killed, by keeping him in isolation, a the threshold for inhuman and Orangi area of Karachi on of the Pakistani Taliban, military troops searching the with attacks claimed by both contention the state denies. degrading treatment is sub- Wednesday, police officials claimed responsibility for the area and marking evidence. Islamist militant groups such The court said Mr. Breivik’s stantially higher than what the said, adding that the shootings attacks in an emailed state- One channel showed what it as the Taliban as well as vigi- isolation in jail wasn’t a viola- court concluded.” happened within minutes of ment. “This attack is part of said was footage from a lantes. tion in itself, but that prison The verdict handed down each other. our series of attacks against nearby security camera that Islamist extremists have in authorities had been too fo- on Wednesday can be ap- The police were deployed to security institutions and the showed two men walking up to the past accused the vaccina- cused on security and hadn’t pealed, but if it stands, prison protect the people who were police, which will continue,” the back of a police van, firing tion teams of spying for West- justified why he couldn’t see officials will have to consider conducting polio vaccinations said Ehsanullah Ehsan, the into it and then walking away. ern governments and some other prisoners. “The prison mixing him with other prison- through a door-to-door cam- group’s spokesman. Pakistan and neighboring groups also claim that the regime implies inhuman treat- ers or take additional mea- paign, government officials The faction had claimed the Afghanistan are the only coun- vaccinations are part of a se- ment of Mr. Breivik,” Ms. sures to compensate for his said. deadly Easter Sunday bombing tries left in the world where cret campaign to sterilize Sekulic wrote. segregation. No health worker was in the eastern city of Lahore polio is endemic. The vaccina- Muslim men. “The most important fac- Norway’s attorney general harmed, police and govern- that killed at least 72, and tion campaigns in these coun- —Safdar Dawar tors include the duration of hasn’t yet decided whether to ment officials said. threatened more attacks. Its tries are part of an interna- in Peshawar, Pakistan, [his] isolation, the inadequate appeal the verdict, a represen- The police returned fire, statement on Wednesday tional push to eradicate the contributed to this article. justification of whether isola- tative told reporters. Ecuador Quake Hits Country Already in Dire Straits BY SARA SCHAEFER MUÑOZ 200, because people are with- lowest levels in at least a de- The bleak scenario led the nancing, which has mainly long road ahead after the AND RYAN DUBE out houses, and without cade, according to the central International Monetary Fund been restricted to multilateral country’s worst natural disas- work.” bank. Tax revenue was down this month to project that the lenders and China since Mr. ter in almost 70 years. PEDERNALES, Ecuador— Rebuilding homes, bridges almost 20% at the start of the economy would contact 4.5% Correa opted to default on the “This isn’t going to take This coastal city of beach bars, and roads in places destroyed year, while international re- this year and 4.3% in 2017, the country’s debt in 2008. Before three days or three months. seafood cafes and small hotels by the quake is expected to serves had fallen to $2.3 bil- worst performances in South the quake, some economists This is going to take years and was one of Ecuador’s success take years and cost billions of lion from $4.2 billion in Au- America after Venezuela. That were already forecasting that cost billions,” he said, adding stories, transformed by the dollars, President Rafael Cor- gust. External debt had is a sharp contrast from the Ecuador would require some that officials were preparing country’s recent burst of eco- rea said. That is money that doubled to over $27 billion previous decade, when high oil $10 billion in financing this economic measures to respond nomic growth from a rundown the country doesn’t have as it since 2009, according to Ob- prices helped fuel growth that year. to the crisis. fishing village to a bustling faces a deep contraction due servatorio Fiscal, a Quito- averaged 4.5% a year. “The most likely scenario is Here in Pedernales four tourist spot. to the collapse in oil prices. based organization that tracks Adding to the challenge is a very slow reconstruction,” days after the quake, streets Now, 80% of its structures “It is the worst moment to government finances. Ecuador’s lack of access to fi- said Vicente Albornoz, the were closed off with shoulder- lie in ruins as rescuers franti- face such a catastrophe,” said dean of the business and eco- high piles of rubble, garbage cally search for corpses fol- Maggie Barreiro, an economist nomics faculty at Quito’s Las littered the sidewalks and res- lowing Saturday’s devastating at San Francisco University in Americas University. “There cue workers and many re- magnitude-7.8 earthquake, Quito. “The fiscal accounts are won’t be large investments of maining residents wore paper which killed at least 525 peo- empty, and we are having huge resources, a large injection of surgical masks to protect ple and injured more than problems of liquidity.” money or a cascade of private from dust and the pervasive 4,600 in Ecuador. In Peder- Ecuador, the smallest mem- investments.” smell of death. In the city’s nales, residents and officials ber of the Organization of the Officials have tried to re- soccer stadium, more than 50 say, all the recent progress has Petroleum Exporting Coun- main confident about rebuild- new coffins were stacked in been erased. tries, counts on oil for half of ing, pointing out that key in- piles awaiting the arrival of “Pedernales is starting from its exports. Its dollarized dustrial infrastructure, bodies extracted from the almost zero,” said Mayor Ga- economy has also been hurt by including pipelines, refineries wreckage. briel Alcivar during a brief the appreciation of the green- and dams, weren’t destroyed. Officials say they extracted pause from his tours around back, making exports like Mr. Correa said in a news con- 164 dead, among them dozens the sweltering, debris-laden flowers and bananas less com- ference Wednesday that public of Ecuadorian tourists buried city Wednesday. “I’m not wor- petitive. infrastructure withstood the under hotel rubble. Several

ried right now, but I’m wor- Ecuador has just $133 mil- GUILLERMO GRANJA/REUTERS quake relatively well, but ac- dozen people were still miss- ried about day 30, day 60, day lion in its treasury, one of the An aerial view Wednesday of Pedernales showed the quake’s toll. knowledged that there is a ing. 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 THE WALL STREET JOURNAL. Thursday, April 21, 2016 | A7 U.S. NEWS Victims Tubman to Be Featured on $20 Bill

Win Right Female abolitionist picked for currency To Collect after uproar over From Iran losing Hamilton on $10 BY BRENT KENDALL BY NICK TIMIRAOS

WASHINGTON—The Su- This time, Alexander Hamil- preme Court on Wednesday ton dodged the bullet. cleared the way for victims of Treasury Secretary Jacob terrorist attacks to collect about Lew was set to announce plans $2 billion in frozen funds tied to Wednesday to put Harriet Iran’s central bank. Tubman on the $20 bill, fol- The court, in a 6-2 decision, lowing an extended campaign ruled Congress acted within its to solicit public input on his powers when it passed legisla- initial proposal to put a tion in 2012 that granted vic- woman on the front of the $10 tims involved a court case the bill, according to a Treasury explicit right to collect the official. money. The subplot over what Justice Ruth Bader Ginsburg, would happen to Alexander writing for the majority, said Hamilton, the nation’s first the legislation was “designed to Treasury secretary who will aid in the enforcement of fed- remain on the $10 bill, often eral-court judgments” and overshadowed the Treasury “does not offend separation of Department’s campaign to cel- powers principles protecting ebrate the contributions of fe-

the role of the independent ju- male historical figures. GETTY IMAGES diciary.” It isn’t clear when the new Abolitionist Harriet Tubman will be put on the $20 bill as part of a campaign to celebrate the contributions of female historical figures. The ruling was a victory for $20 note will be introduced more than 1,000 victims and into circulation. Currency offi- women’s groups that were lob- note could serve as an interim Hamilton was shot and fewer than 5% of all bills. family members who sued to cials began moving ahead with bying for a woman to go on step, but it already drew criti- killed in a duel with Vice Pres- The U.S. was ordered by a hold Iran liable for sponsoring a redesign of the $10 note in the $20 bill appear to have cism Wednesday from several ident Aaron Burr in 1804. federal court in 2008 to rede- terrorist attacks, including the 2013, and that bill won’t be in- swayed Mr. Lew’s decision. prominent women in business By contrast, Andrew Jack- sign several bills to include 1983 Marine-barracks bombing troduced until 2020. “Everybody painted the sec- and entertainment. son, who is currently on the tactile features for the blind in Beirut and the 1996 Khobar A woman hasn’t appeared retary into a corner. This is “Could there be a better $20 bill, was a wealthy slave and visually impaired. Officials Towers bombing in Saudi Ara- on the nation’s paper money the only decision he could metaphor for the second-class owner who resettled large concluded in 2013 that the $10 bia. in more than a century. Tub- have made,” said Douglas status that continues to limit numbers of Native Americans. bill should go first, which man, an escaped slave, became Hamilton, a fifth-great-grand- our girls,” said a letter posted A prominent critic of paper made it the best vehicle for a famous abolitionist and fer- son of Alexander Hamilton by members of the Makers or- money, he warned of its “deep- Mr. Lew to ensure a woman ried other slaves to freedom who pledged last year to do ganization, a women’s leader- seated evil” in his farewell ad- would arrive on the currency through the Underground Rail- everything possible to keep ship group, on Wednesday. dress. Jackson will move to in the near future. road. She served as a Union his ancestor on the bill. The campaign to save Ham- the back of the $20 bill, a A gaggle of federal agencies spy during the Civil War. As it became clear in recent ilton took on a life of its own Treasury official said. decide on currency-security The original plan announced weeks that Mr. Lew was con- after the debut of the popular The $20 note is the third features, but the Treasury De- in June would have put a sidering the bill switch—mov- Broadway musical of the same most widely circulated paper partment has broad powers woman on the front of the $10 ing a woman to the $20 while name last summer. In hip-hop bill and accounted for almost for the visual displays. bill to mark the centennial of keeping Hamilton on the $10— verse, the musical tells the bi- 23% of all bills in circulation Money can’t feature living women’s suffrage. Instead, the other women’s groups said Mr. ography of Hamilton, an or- last year, according to the Fed- persons. The last paper cur- back of that bill will now in- Lew was breaking his commit- phaned immigrant who served eral Reserve. The $1 note ac- rency to print a woman’s solo clude a vignette to honor lead- ment to put a woman’s por- as a top aide to George Wash- counts for about 30% of all portrait was a $1 silver certifi- ers of that movement. trait on the currency. Rede- ington before founding the na- bills, and the $100 note, about cate issued in 1891, which fea-

MICHAEL DWYER/ASSOCIATED PRESS Devotees of Hamilton and signing the back of the $10 tion’s financial infrastructure. 28%. The $10 note represents tured Martha Washington. Justice Ruth Bader Ginsburg

Iran didn’t appear in court for those cases. The victims ob- tained judgments against the Michigan Officials Charged Over Tainted Water country that amounted to billions of dollars and then em- BY KRIS MAHER stand what went wrong. barked on a yearslong legal Mr. Snyder and others have campaign to try to collect. One Two Michigan environmen- pegged most of the blame for target was nearly $2 billion in tal regulators and a Flint wa- the contamination on state reg- frozen assets tied to Bank ter-plant supervisor have been ulators who he said failed to Markazi, Iran’s central bank. charged in the first criminal follow a federal regulation in- Bank Markazi said the funds case stemming from federal tended to keep lead out of were part of its foreign-cur- and state investigations into drinking-water systems. Mr. rency reserves. The money was lead contamination of the city’s Snyder said he was misled by held in a Citibank account main- drinking water. those regulators and didn’t tained by a Luxembourg finan- Michigan Attorney General know the scope of the problem cial intermediary doing busi- Bill Schuette on Wednesday an- until October. He also has ness with an Italian bank that in nounced charges against Ste- called for the state to imple- turn did business with Markazi. phen Busch, who was a district ment rules that go well beyond The bank argued that Con- supervisor in the Michigan De- what the federal government gress unlawfully changed the le- partment of Environmental requires. gal rules in a pending case. The Quality’s Office of Drinking Wa- Mr. Snyder, who has faced victims said Congress had the ter and Municipal Assistance calls for his resignation, said power to change the law, even during the water crisis; Michael this week that he would drink to influence pending cases. Prysby, a former district engi- Flint tap water for at least a Chief Justice John Roberts, neer with the DEQ; and Michael month. joined by Justice Sonia Soto- Glasgow, a supervisor at Flint’s Despite the release of tens mayor, dissented from Wednes- water-treatment plant. of thousands of emails and day’s ruling, saying lawmakers Messrs. Busch and Prysby other documents by the Snyder had intruded on the courts’ au- were each charged with three administration, state and fed- thority to decide cases. felony counts, including for al- eral officials have yet to pin-

“Hereafter, with this court’s legedly misleading federal envi- JAKE MAY/THE FLINTpoint JOURNAL/ASSOCIATED PRESS why Flint didn’t put mea- seal of approval, Congress can ronmental officials and tamper- Michigan Gov. Rick Snyder filling jugs with filtered Flint tap water, which he said he will drink for a month. sures in place that would have unabashedly pick the winners ing with evidence related to prevented the corrosion of lead and losers in particular pending lead testing of Flint’s water. Mr. sis that the state will vigor- drinking-water standards are Flint is a terrible tragedy, but pipes. cases,” the chief justice said. Prysby faces an additional fel- ously pursue any evidence of fairly common, few rise to the that does not mean that state Mr. Glasgow, the supervisor Lawyer Theodore Olson, who ony count for authorizing the wrongdoing and hold people level of seriously jeopardizing and city officials acted with the at the Flint treatment plant, argued the case for the victims, operation of the Flint water- accountable,” Mr. Adler said. the public’s health, according criminal intent required to sus- testified at a state legislative said the high court’s decision treatment plant when he alleg- Bringing criminal charges to Mr. Uhlmann. He said he tain a conviction,” he said. hearing last month that he holds Iran accountable for sup- edly knew it couldn’t provide against government officials couldn’t find a single criminal Flint’s drinking water be- wanted more staff and other porting terrorism and “will safe drinking water. The men for failing to safeguard public came contaminated when the changes before using the Flint bring long-overdue relief to face two misdemeanor counts. drinking water is highly un- city switched to using the Flint River as a water source but more than 1,000 victims of Ira- Mr. Glasgow was charged usual, but legal experts had ex- Criminal charges for River as its water source from was denied by officials in Flint, nian terrorism and their fami- with one felony count of tam- pected prosecutors to act given failing to safeguard April 2014 to October 2015. which was then run by a state- lies, many of whom have waited pering with evidence and a the severity of Flint’s lead con- During that time, state regula- appointed emergency manager. decades for redress.” misdemeanor count of willful tamination and the public out- public drinking tors failed to require the use of Mr. Glasgow also testified at A lawyer representing Iran’s neglect of duty. Prosecutors al- cry. water are unusual. a chemical to prevent corrosion the hearing that during a meet- central bank didn’t respond to a lege that he tampered with Charges involving illegal dis- and lead leached into drinking ing at the Flint water-treat- request for comment. 2015 water-monitoring reports. charges into waterways, while water from aging service lines ment plant shortly before the The long-running case isn’t Attorneys for the men couldn’t still rare, have been more com- charge brought under the fed- running to homes. city started using the Flint affected by last year’s landmark be reached for comment. mon against government em- eral Safe Drinking Water Act in Whether bureaucratic mis- River, he asked Mr. Prysby of nuclear agreement between Ari Adler, a spokesman for ployees, said David Uhlmann, a federal court involving public steps or criminal misconduct the DEQ how often he would Iran, the U.S. and other world Michigan Gov. Rick Snyder, said law professor at the University drinking-water systems be- left the city of nearly need to monitor levels of an powers. Under that deal, Tehran the governor has supported the of Michigan and former chief of tween 2005 and 2014. 100,000 exposed to poten- anticorrosive chemical. Mr. accepted limits on its nuclear investigations into Flint’s water the Justice Department’s Envi- Still, he said prosecutors tially hazardous levels of Glasgow testified that Mr. activities in exchange for relief crisis. “The governor has said ronmental Crimes Section. could face an uphill challenge lead has been a question at Prysby said the city wasn’t re- from economic sanctions. from the beginning of this cri- While violations of federal in Flint. “What happened in the heart of efforts to under- quired to add the chemical.

threatening an important measure amount that isn’t visible because of suicides, alcohol abuse and The “underlying reality re- the “bouncy” first quarter. U.S. of health and prosperity. of rounding, Dr. Arias said. chronic liver diseases. mains the same: Housing de- “The choppiness in sales ac- The number of years a white Such reversals, even small —Betsy McKay mand is solid and steady, but tivity so far this year is directly Watch American born in 2014 could be ones, are unusual for wealthy there aren’t enough houses on related to the unevenness in the expected to live fell to 78.8 years nations, where people tend to ECONOMY the market to keep up,” said rate of new listings coming onto from 78.9 years the year before, live longer with each successive Stephen Stanley, chief economist the market to replace what is, according to the CDC. The change generation as health care and Existing-Home Sales at Amherst Pierpont Securities. for the most part, being sold was driven largely by women. public safety improve and the Rose 5.1% in March The National Association of rather quickly,” Mr. Yun said. Non-Hispanic white women live standard of living rises. Sales of previously owned Realtors said there were 1.98 Tight supply prompted poten- HEALTH longer than men and African- Still, there were improvements homes rose in March, a sign of million existing homes available tial buyers to snap up homes more Americans of both genders in the for some groups: African-Ameri- recovery in the market after a for sale at the end of March, rapidly as they came on the mar- Life Expectancy Falls U.S., with a life expectancy at birth can men gained 0.4 year of life rocky start to the year, although down 1.5% from a year earlier ket. Homes stayed on the market For White Americans of 81.1 years in 2014, according to expectancy in 2014, to 72.2 years. inventory remained tight. and a 4.5-month supply at the for an average of 47 days in March, Life expectancy fell for the U.S. the CDC. That is a slight decline Deaths from suicides, drug Sales rose 5.1% in March from current sales pace. down from 59 days in February. white population in 2014 and re- from 2013, when it was 81.2 years. overdoses and similar causes ap- the prior month to a seasonally Lawrence Yun, the associa- Limited supply has also had mained flat for all population “Basically, we’re back to pear to be playing a bigger role. adjusted annual rate of 5.33 mil- tion’s chief economist, described an impact on prices: The national groups combined, according to data where it was in 2009,” said Eliz- Research published in November lion, the National Association of demand as sturdy but said buy- median sale price for a previously released Wednesday by the Cen- abeth Arias, the author of the showed that white middle-aged Realtors said Wednesday. ers at the low end of the mar- owned home last month was ters for Disease Control and Pre- report, in an interview. Americans—both men and February’s sales pace was re- ket face limited inventory, while $222,700, up 5.7% from a year vention, showing how increases in Life expectancy for non-His- women—have been dying at a vised down slightly to 5.07 mil- the stock market’s rough start earlier, marking the 49th straight death rates from suicides, drug panic white men, at 76.5 years, rising rate since the beginning of lion. March’s sales were 1.5% to the year may have discour- month of year-over-year gains. overdoses and related causes are also fell last year, but by a small this century, in large part because higher than a year ago. aged high-end home sales during —Harriet Torry 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 A8 | Thursday, April 21, 2016 ** THE WALL STREET JOURNAL. U.S. NEWS Trump, Clinton Gain Some Breathing Room victory did as much as any- Yet Mr. Sanders himself, thing so far to solidify his and those who lead his cam- status as the clear front-run- paign, now act as if they are ner, and the man best posi- convinced they just might be tioned to get the Republican able to pull off a miracle, del- Party’s presidential nomina- egate math be damned, and tion. win. CAPITAL JOURNAL His victory speech was GERALD F. SEIB calmer and more dignified, uch as the Clinton presented by a man who camp resents the thinks he is on his way from M Sanders attacks on n an election season in mere candidate to nominee. their candidate, the Sanders which very little has Indeed, though delegate camp resents the Clinton I gone according to expec- details weren’t clear yet, the team’s belittling of their can- tation, New York did: Its big victory was big enough to al- didate. primary was kind to both low him and his team to The raucous televised de- parties’ presidential front- think they will get reasonably bate between Mrs. Clinton runners, and just when they close, down the line, to the and Mr. Sanders before the needed that. magic 1,237 needed to win New York primary repre- Donald Trump won a re- the nomination. sented a kind of watershed in sounding vic- But close is still only these contrasting narratives, tory, easily that—close, but not quite with both candidates emerg- the biggest there. That still leaves Mr. ing angry and perhaps even and most Trump a steep climb to actu- embittered. persuasive of ally secure the nomination. It was not a scene that the cam- A big win was what was suggested either a quick end,

paign. Hil- expected in Mr. Trump’s ANDREW LAMBERSON FORor THE WALL STREET JOURNAL a pretty one. Still, Mrs. lary Clinton also won a con- home state, one of the rare People in Manhattan waited in line to vote during New York’s presidential primary on Tuesday. Clinton, in her Tuesday night vincing victory, and an places where he has had sig- victory speech, tried to start essential one. Both strength- nificant party-establishment ate. Her victory added to damage in the process. Mr. so dearly like to woo away calming the waters, at least ened their commanding support. The states ahead what appears to be her insur- Sanders’s attacks on Mrs. from Mrs. Clinton—increas- with Sanders supporters, leads heading into the pri- will be more of a mixed bag. mountable lead in dele- Clinton—which now all but ingly are angry at the dam- saying “to all the people who mary home stretch. The giant California pri- gates—provided the hun- proclaim that she is a servant age he risks doing to the supported Sen. Sanders, I New York won’t be mary on June 7 will matter dreds of party leaders who of special-interest money— woman most assume will be believe there is much more enough on either side to pre- more than it has in decades; hold superdelegate status appear to be helping drive up the party’s nominee and the that unites us than divides vent a high level of turbu- and the weeks between that and can vote as they please negative feelings toward the person who could stand be- us.” lence during that run. Re- contest and the Republican at the convention stick with former secretary of state, and tween Donald Trump and the In recent cycles, when the publicans still face trench convention in July now fig- her. not just among Republican presidency. primary calendar turned to warfare between Mr. Trump ure to be marked by the kind voters. There was a time when Mr. late April, the presumptive and Sen. Ted Cruz over un- of wooing of unattached del- et New York will be re- Independent voters and Sanders appeared to be cam- nominees seemed secure committed delegates; Demo- egates unseen since the 1976 membered as the state Sanders supporters that Mrs. paigning to make a point. And enough to start thinking crats still face a struggle be- race between President Ger- Y where the Democratic Clinton would need as the indeed, some around him still about vice-presidential nomi- tween the candidate of the ald Ford and upstart conser- race went from healthy con- party’s nominee also appear think that is the most likely nees, and even transition party’s head, Mrs. Clinton, vative favorite Ronald Rea- test to ugly grudge match. affected. outcome of his effort: He will teams to start planning what and the candidate of its gan. The bad blood between the Yet Mr. Sanders may have accumulate enough strength to do after a November vic- heart, Sen. Bernie Sanders. On the Democratic side, Clinton and Sanders cam- done himself some damage in by time of the convention to tory. Still, New York went a Mrs. Clinton took care of paigns, and the candidates New York as well. Party regu- steer the party’s platform and In 2016, we’re not quite long way to clarify matters business in the state she themselves, worsened. lars—including, presumably, its ruling principles for the there—but New York may on both sides. Mr. Trump’s once represented in the Sen- Both probably suffered the superdelegates he would years ahead. have brought us closer. FROM PAGE ONE

Unemployment in Europe’s STOCKS periphery remains well above EU Takes Tougher Stance on Google precrisis levels, while expectations have risen for an elec- BY NATALIA DROZDIAK erating system was “good for ContinuedfromPageOne tion in Spain this summer AND STEPHEN FIDLER competition and good for con- tinational-heavy DAX has that could further complicate sumers.” lagged behind the S&P 500, efforts to tackle the country’s BRUSSELS—For Google,it’s In her speeches on her ap- an index it has closely budget deficit. a tale of two continents. proach to the role, Ms. Ve- tracked in recent years. Disagreements between On one side of the Atlantic, stager has emphasized fair- “I’m looking at it with a bit Greece, the International European competition authori- ness, suggesting she is looking of amazement,” said Philippe Monetary Fund and European ties unveiled on Wednesday a out for the underdog who may Gijsels, chief strategist at creditors are adding to the second set of charges against find it hard to enter markets BNP Paribas Fortis. unease. Uncertainty over the the Alphabet Inc. subsidiary, dominated by behemoths. Going into the year, Europe outcome of the U.K.’s June this time over its Android op- In an interview with The seemed much more attractive referendum has also hit in- erating system. On the other Wall Street Journal earlier this than other regions, Mr. Gij- vestors interest in taking side, Canada dropped its probe month, she said that the law sels said. Like many inves- risks across the region. against the company this should ensure small players tors, he was counting on the “If you’re worried about week, following U.S. regulators have “a fair fighting chance.” ECB to boost stocks in the Brexit and Italian banks, you that have so far found that In the U.S., antitrust regula- new year. play it safe and buy U.S. Google’s conduct raises no an- tors have a high bar, needing “If you asked for forecasts stocks,” said Luca Paolini, titrust concerns. to prove a criminal case in a in December, pretty much ev- chief strategist at Pictet Asset Why the difference? Many court that can mete out jail ery man and his dog would Management. “You can be Americans assume it is largely sentences as well as fines. say the eurozone and Japan right on a lot of things, but if explained by a protectionist Class-action lawsuits can mul- would outperform the U.S., you’re wrong on Brexit, forget European response to the tiply the financial damage to because they have quantita- the ECB or a recovery in

dominance of U.S. technology FRANCOIS LENOIR/REUTERS those found guilty, also in- tive easing,” said Abi Oladi- earnings—you’ll see signifi- companies. The Android case began under Margrethe Vestager’s watch. creasing the deterrent to anti- meji, chief strategist at cant underperformance in Eu- European Union officials ve- competitive behavior. Thomas Miller Investment. rope.” hemently deny any such effort. the competition commissioner, started by her predecessor. In the EU, the process is ad- But investors have grown Europe’s shares have been Experts in competition law say currently a Danish politician, But the Android case was ministrative. Nobody will go to skeptical about the impact performing better in recent the trans-Atlantic divide is ex- Margrethe Vestager, who took launched under her watch and jail and the worst outcome will those measures will have on sessions. The Stoxx Europe plained by a host of other fac- over in November 2014. carries her personal signature. be fines, of up to 10% of com- risky assets, while an unex- 600 has risen for seven of the tors, including contrasting le- Since Ms. Vestager took In its various investigations pany revenues, and demands pectedly dovish stance on U.S. past eight trading days, out- gal processes, distinct views over, her department has laid into Google’s conduct, the to change conduct. interest rates from the Fed- pacing gains in the S&P 500. on the free market and differ- out its stall, targeting Amer- commission has clashed with An appeal is possible to the eral Reserve in March has Some investors say the gap ent benchmarks for what con- ica’s biggest tech companies, Google over the tech giant’s al- EU’s top court, but lawyers say helped drive a 4.7% gain in could narrow further, espe- stitutes anticompetitive behav- including Amazon.com Inc. and leged maneuvers to exploit its the court tends to look for le- the euro against the dollar cially as recent easing mea- ior. Qualcomm Inc., with a slew of powerful position to prioritize gal and procedural errors this year. sures from the People’s Bank True, Google and the other antitrust probes. Some major the company’s own services rather than to create prece- The euro’s relative of China have calmed nerves U.S. tech giants don’t have the U.S. corporations are among and impede rival efforts. In dent for future competition strength has held back Euro- over the health of the coun- political sway in Brussels that companies that have found Android and through the com- cases. pean stocks, analysts said, try’s economy. European officials believe they their tax deals with European pany’s shopping service, it David Anderson, Brussels- while favoring U.S. multina- “China is not collapsing, have in Washington, where governments under scrutiny views Google as hurting con- based partner at Berwin Leigh- tional stocks, whose profits and as that realization comes they have provided an impor- using her department’s powers sumers by limiting their op- ton Paisner LLP, says some in had suffered in 2015 from a home to roost, it will favor tant growth story since the to investigate illegal state aid. tions. the U.S. are uncomfortable stronger currency. Europe,” said Mike Bell, a 2008 financial crisis. Google has been her high- But in response to the com- with a process in which they European stocks have also market strategist at J.P. Mor- But a bigger contrast lies in est-profile target. She an- mission’s charges against An- see the commission acting as been battered this year by gan Asset Management. the greater power that resides nounced charges last year re- droid, Google general counsel “prosecutor, judge and jury” in their greater exposure to in the competition authority in lated to Google’s comparison Kent Walker rejected the relation to antitrust investiga- emerging markets, suffering Europe and in the person of shopping service, a case claims, saying the mobile options, decisions and fines. disproportionately in the general wave of risk aversion that spread around the world. Delivering fast, fact-packed revenue from all of its websites. The EU official said Wednes- very strong, and this allows it But the problems at home news and analysis on CHARGE “If Google were to be no lon- day that “major Android manu- to solidify its position even fur- have been just as troubling. markets, deals and people ger the default search engine facturers and the major Euro- ther.” Growth rates across Europe from London and beyond, on phones, that could have a pean telecoms companies” were But technology executives remain subdued, while infla- plus real-time markets data ContinuedfromPageOne negative impact on its busi- the ones that the EU alleges and lobbyists on Wednesday ar- tion expectations in the euro- cash-cow search engine into the ness,” said Mark Mahaney, an have been forced to install gued that intervention in cases zone have yet to stage a Download on the App Store mobile world. analyst at RBC Capital Markets, Google’s search engine. The like Google’s could do more meaningful rebound. Last year, Ms. Vestager filed who has described Google as an companies cooperated with the harm than good, pointing to the formal charges against Google Internet utility. investigation but most of them decision Tuesday by Canada’s accusing the firm of using its But he added that it isn’t didn’t want to be named be- competition authority to close A New Low search engine to boost its rela- clear how long the impact cause they feared retaliation by its probe of Google’s practices Ratio of the U.S.-dollar return on eurozone stocks tively small comparison-shop- would last, as many users Google, he said. involving Android. In particular, to that on U.S. stocks, based on MSCI indexes ping business. some critics argued that the This year’s charge sheet charges effectively penalize 1.2 Lobbyists argued that intervention in such Eurozone takes aim at Google’s main Google for making an operating stocks business of selling ads that ap- cases could do more harm than good. system that any manufacturer return pear when users search the In- can use, even if there are condi- 1.0 more ternet. Helped in part by An- tions, unlike Apple Inc.’s iOS, droid, Google has become the would potentially switch back Antitrust lawyers said the which is entirely proprietary. biggest seller of mobile adver- to Google anyway: “It’s a hard commission was on solid “The danger is that you do tising with an estimated 35% of thing to remedy at this point.” ground in levying charges at something which just helps 0.8 the $70 billion global mobile-ad The Android charges are Google over its exclusivity pay- some players in the market and Eurozone market in 2015, according to based on evidence of wrongdo- ments. “If Google is paying doesn’t help consumers,” said stocks return a fraction of eMarketer. ing dating back to 2011, the EU smartphone makers money so James Waterworth, Brussels- U.S. stocks Morgan Stanley predicts that official said. Ms. Vestager that they pre-install Google based vice president of the 0.6 when Google parent Alphabet opened a formal probe into search and no other alternative Computer & Communications reports first-quarter earnings Google’s conduct with Android search engine, then the com- Industry Association, a lobby Thursday, the firm’s mobile- last April based on complaints mission’s move is completely group for tech firms including 0.4 search revenue will total $4.78 from rivals, the first of which understandable,” said Kai Neu- Google. “Some people don’t like billion, up 60% from a year ear- was filed in April 2013 by haus, a Brussels-based lawyer having to compete with Google. 1990 2000 2010 lier and representing nearly FairSearch, a coalition of tech- at CMS Hasche Sigle. “Google So they would like the commis- Note: Weekly data as of April 15 one third of Google’s overall ad nology companies. as a search provider is already sion’s help.” Source: Thomson Reuters Datastream THE WALL STREET JOURNAL. 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 THE WALL STREET JOURNAL. Thursday, April 21, 2016 | A9

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PAIDFORBYUNITEDAGAINSTNUCLEARIRAN 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 A10 | Thursday, April 21, 2016 THE WALL STREET JOURNAL. PERSONAL JOURNAL. How Do You Survive Office Competition?

BY SUE SHELLENBARGER FOUR 2 3 Every office has at least one—the hyper- PERSONALITY competitive employee who’s out to win at TYPES all costs. 1 4 These adversarial types go beyond striv- Competitive people set ing for success. They turn every endeavor off various reactions. into a competition, whether it is intended to Recognizing your be or not, psychologists say. And they spark response helps you strong reactions in colleagues, from fighting avoid hurting your own back to just shutting down. performance. Competition is often healthy and encouraged at work, of course. People (1) Strivers welcome WORK & who compete in a healthy way competition as a FAMILY see it as a route to developing challenge and step up their skills, reaching shared their game. goals, staying motivated and thriving on the job. (2) Warriors focus Research on hypercompetitors sets on winning and don’t them apart. Intense rivalry is linked with a hesitate to use sneaky win-at-any-cost mind-set and a tendency to or selﬁsh tactics to get ignore the perspectives and decisions of what they want. others, according to three 2010 studies of more than 20,000 online-auction partici- (3) Avoiders withdraw pants and 400 others surveyed by Deepak and shut down when Malhotra, a professor of business adminis- challenged to compete. tration at the Harvard Business School. Other research shows highly competitive (4) Worriers feel people focus on attaining status over get- anxious in the face of ting work done, and readily put their own competition. Stress or interests above others’. self-doubt may cause How we react to competition varies them to perform poorly. widely. People may be conditioned by child- hood experiences to see a hypercompetitive MITCH O’CONNELL FOR THE WALL STREET JOURNAL colleague as a challenge—and to respond by trying harder—or as a threat, triggering a Such confrontations can stir a visceral she says. it caused. A hypercompetitor won’t under- retreat into fear and anxiety. response so powerful that it blindsides peo- At times, the presence of super-competi- stand what you’re asking unless you explain It is rooted partly in genetics: Scientists ple, she says. “They know they feel angry, tive people can spur others to achieve more. the behaviors that need to end, says Jessica have identified a “warrior” variant of a gene they feel sick, they feel sad. They find them- Jay Bower says feeling overmatched early in Bigazzi Foster, a senior partner with RHR linked to performance under pressure, selves having revenge fantasies,” Dr. Recin- his career by warrior types with Ivy League International, a Chicago leadership and which confers an advantage in threatening iello says. M.B.A.s drove him to study nights for 4½ business-psychology consulting firm. Pre- situations, and a “worrier” variant linked to Equally at risk on the job are those who years to get his M.B.A. too. Knowing he pare to explain how the behavior is hurting poor performance, according to a 2015 prefer to sit out any competition. “Some lacked skills his co-workers had “was kind the business or the team. study by researchers at Eötvös Loránd Uni- people don’t even want to compete,” says of a searing experience for me,” says Mr. Consider practicing what you plan to say, versity of Budapest. Steve Sims, chief product officer for Bad- Bower, president of Crossbow Group, a to help you control your emotions, and These tendencies shape early decision- geville Inc., a maker of motivational tools Westport, Conn., marketing-services firm. write a script to keep the conversation on making. College students who are competi- for the workplace. If you show such a per- Deciding whether to confront an ultra- track, Dr. Reciniello says. Super-competitive tive by nature tend to aim toward competi- son a leaderboard of the top 10 performers competitive colleague can be tricky. “It de- people “will do everything to get you off tive jobs, such as coaching, according to a in the office, “that person will drop out.” pends on the situation. You have to look at point.” 2015 study led by John M. Houston, a psy- Patti Johnson first noticed a colleague’s what you stand to lose,” says Susan Packard, Start on a positive note, says Elaine Va- chology professor at Rollins College, Winter hypercompetitive behavior when she was author of “New Rules of the Game,” a book relas, managing partner of Keystone Part- Park, Fla. Those who are less competitive vying with the woman for a promotion about how women can compete at work. ners, such as, “You’re very successful and I train for more collaborative jobs, such as years ago. She withheld information Ms. A little political maneuvering by a rival appreciate that. What I find very difficult in school counseling. Johnson needed to do her job, and took might not hurt much. But if a hypercompeti- working with you is that you don’t share in- People who become anxious and shy credit with the boss for work they had done tor starts interfering with your career goals, formation.” Then give examples and de- away from hypercompetitors in the work- together, says Ms. Johnson, chief executive or with the funding or resources you need scribe the behavior you’d like in the future. place often hurt their own performance, officer of PeopleResults, a Dallas human-re- to do your job, you have to act, she says. Employees who are stuck with a hyper- says Shelley Reciniello, a New York psychol- sources consulting firm. The first step is to be aware of your own competitive colleague may not get much ogist and author of “The Conscious Leader.” “I realized it was part of my job to man- reactions. Then, practice confronting co- help from the boss, at least at first. The After one executive was confronted by a ri- age her,” Ms. Johnson says. She insisted the workers, if necessary, to insist that they dark side of a hypercompetitor often goes val with a harsh critique of her speaking boss include her in meetings on joint proj- stop undercutting teammates or shared unnoticed because the boss sees an “aggres- skills, “she lost her footing. It started to get ects and kept her boss well-informed about goals. sive, results-oriented person,” says Ralph to her,” and the executive began stumbling her contributions. “I made it more and more Gather specific examples of the hyper- Roberto, president of Keystone Partners, a during presentations, Dr. Reciniello says. difficult for her to throw tacks on the road,” competitor’s bad behavior and the reactions Boston career-management consultant.

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 THE WALL STREET JOURNAL. Thursday, April 21, 2016 | A11 ARTS & ENTERTAINMENT Retooling the Tuileries BY INTI LANDAURO

THE GRANDE DAME of Parisian parks is getting a face-lift. Created in the 16th century by Catherine de Medici, the Tuileries Gardens has long been a favorite spot for Parisians and tourists to meet, stroll and picnic. Running from the Louvre west to Place de la Concorde and dotted with cafés, playgrounds, statues, flower beds and fountains, the park attracts around 14 million visitors annually, according to the Louvre, which took over management of the Tuileries 11 years ago. The high foot traffic, combined with larger events such as fashion shows and an annual summertime Fête des Tuileries fun- fair, have eroded the park’s green space. Greenery in the Tuileries currently accounts for only 40% of the garden’s 56 acres. Now, the Louvre plans to restore the garden, a protected historical monument, to its former glory, adding grass, plants and trees to bring the space closer to the designs of renowned 17th-century French gardener An- dré Le Nôtre, who was one of the first to re- landscape the park. “We want to return to the original—but keeping what has been done to it through the centuries,” says Isabelle Glais, Louvre deputy director for the gardens. “It’s a kind of cour- tesy, we want to keep the traces of the past.” The overhaul, which will be launched in the coming weeks, is expected to cost around €15 million ($17 million) and take 10 PARK LIFE The Tuileries, above, is being revamped to increase green space, right. years to complete. The park will remain open throughout, though some areas may be Tuileries revamp made him a sought-after crevice, sand is a particular problem closed while they are revamped. One section, designer. “He was working on the top science for the two smaller museums located the northern bosquet, was restored last year. discoveries of his time on optics.” in the garden: L’Orangerie, with its The museum plans to help finance the Le Nôtre’s grand geometric patterns and massive Monet waterlilies, and Le Jeu project through private sponsors, Ms. Glais his plans for the garden’s central alley to de Paume. “We are testing different says. The Louvre spends €6 million a year continue west with a grand avenue that types of sands: silicate sands instead on maintenance costs, with a third of those eventually became the Champs-Elysées were of the limestone ones currently spread funds coming from special events like the the first attempts at urban planning in Paris, on the soil,” says Ms. Glais. Fête des Tuileries. according Mr. Benech. The park’s axis—and Wind and rain have also eaten Though the park has gone through re- its extension—structured the western part of away at the park’s statues, erasing vamps before, most recently in the 1990s, the city, he says, including La Defense busi- faces, hands and swords. The museum the Tuileries took on its current shape dur- ness district three centuries later. plans to restore some of the works, ing the reign of Louis XIV. Le Nôtre, who Once the exclusive haunt of nobility, the some of which were installed 300

also created the gardens for Versailles and Tuileries was one of the first gardens opened years ago. The most valuable sculp- MUSÉE DU LOUVRE (2) countless royal and noble residences, was to those outside the court when Louis XIV al- tures—such as the huge marble tasked with designing an outdoor space be- lowed les honnetes gens (honest “respect- “Marly Horses” by Guillaume Coustou—were While the surface area dedicated to cafés fitting the Sun King’s newly renovated Pal- able” people) to enter. It was the place where replaced long ago with copies. and playgrounds won’t change, the Louvre ais des Tuileries. He created one of the first the wealthy paraded their new outfits, set- Though the Louvre intends to keep some will add more trees along the garden’s alleys jardins à la française, using symmetry and ting off fashion trends. Four centuries later, of the more unusual additions to the gar- and expand the greenery. The walls of two order to tame nature. the garden is now a favorite setting for de- den—such as Giuseppe Penone’s 46-foot-long ramps located near the exit to Place de la Le Nôtre, who lived in a small house in signers to show off their latest creations dur- bronze “Albero delle vocali (Vowel Tree)” Concorde will be covered with vines, and the Tuileries after he retired, is still revered ing Paris Fashion Week. Tourists and Pari- from 2000 and a group of Asian palm trees the flower beds that run throughout the by landscape architects today for the way his sians still parade down its grand alleyways. planted in one corner of the garden—Mr. garden and are planted to match the themes work played with shapes and perspectives to But so many footsteps have tamped down Benech says the museum isn’t being auda- of the Louvre’s exhibitions, have already both impress visitors and entice them to the sand, making it less permeable to rain and cious enough. “They could be more modern been extended. This year gardeners planted walk further into a space. “Whereas many are thus harming the trees. Adding to the erosion, without denaturing the garden, using all the hyacinths and lavender. In early April, their working now with test and trial, he would do wind often blows down the alleys, creating tools that exist now,” he says. “For the rose scent wafted through the air as visitors the math,” says Louis Benech, a French land- sand clouds that leave passersby’s shoes and garden, for instance, they could use new vari- strolled near the large octagonal pool on the scape architect whose own work on the last the Louvre Pyramid filthy. Seeping into every eties that flower several times a year.” west side of the garden.

WSJ BOOK CLUB MUSIC FESTIVALS Talent in the Fine Print The Other Brontë Sister BY BRENDA CRONIN was uncomfortable working as a BY JIM FUSILLI hybrid of servant and family member “she just sucked it up and HISTORICAL NOVELIST Tracy Che- stuck it out.” Anne poured her mis- Indio, Calif. valier infuses life into centuries-old erable experiences at work and at IF THE COACHELLA Valley Music subjects such as family feuds, a fa- home—where Branwell had started and Arts Festival, which ends next mous painting and a radical poet. his downward spiral into alcohol— weekend, is the premier event of When she read Anne Brontë’s 1848 into “Wildfell Hall.” its kind in the U.S., it’s not due to work, “The Tenant of Wildfell Hall,” Ms. Chevalier is no stranger to its headliners. This year they she was struck by its “surprisingly the Brontës: She has been steeping weren’t all that special: a reuniting modern” feel. The story of a herself in the family to prepare for Guns N’ Roses, which hasn’t re- woman who runs away this year’s 200th anni- leased worthy new music in al- from her abusive hus- versary of Charlotte’s most 25 years; Calvin Harris, per- band was considered birth, and she is the edi- petrator of cliché EDM tracks; and scandalous when it was tor of “Reader, I Married LCD Soundsystem, James Mur- published. Ms. Chevalier Him,” a new collection of phy’s project that disbanded with was amazed that the stories inspired by “Jane much fuss in 2011 and is now back author was the meek Eyre.” Last month she for a round of festival appear- and devout baby of the published her eighth ances. literary dynasty. novel, “At the Edge of But lackluster headliners can be “Wildfell Hall” “came the Orchard,” about the rendered an afterthought by out of nowhere” said hardscrabble lives of a Coachella’s deep lineup. With more Ms. Chevalier, the host family farming in 19th- than 200 acts this year, the most of the WSJ Book Club. century America. Her interesting performers were found “When it was published, second novel, “Girl With at the bottom of the bill in small it was viewed with horror. Most a Pearl Earring,” a reimagining of font. people said, ‘Don’t ever let your the inspiration for Vermeer’s paint- The tiny-type acts tend to go daughters read this!’ ” She has cho- ing, became an international best on early. Bands that performed sen it for our next read. seller and was made into a movie around noon included Ex Hex, a Although not as celebrated as starring Scarlett Johansson.

punk trio; the charming folk-punk NATE WATTERS/COACHELLA Charlotte Brontë’s “Jane Eyre” or The WSJ Book Club invites a duo Girlpool; Hælos, which taps Mbongwana Star performing at Coachella on Friday. Emily Brontë’s “Wuthering Heights,” writer to serve as host, choosing a into trip-hop; dance-pop’s Phases; “Wildfell Hall” makes the case for a book that he or she found memora- punk-pop’s Sheer Mag; and Steady the rhythms of Cuba into their fi- There was a little bit of excel- woman’s independence, leading ble. The Book Club will be reading Holiday, the stage name of singer- ery soul and down-tempo electron- lence for every taste. The British some scholars to call it the first “The Tenant of Wildfell Hall” over composer Dre Babinski. It’s worth ica sung in English and Yoruba; jazz trio GoGo Penguin played an feminist novel. the next month. Read a Q&A with noting that all these emerging the delightful Christine and the exhilarating set before a club-size The Brontë sisters and their Ms. Chevalier about the novel at groups feature women in promi- Queens, a project of Héloïse Letis- crowd, and saxophonist Kamasi brother, Branwell, worked to sup- WSJ.com/Arts. Follow along on the nent roles. Another gratifying sier that blended pop, dash and Washington and his band erased port the family. Charlotte and Emily club’s Facebook page, on Twitter noontime act was the Congolese dazzling choreography; M83, the the line between jazz and funk. “hated being governesses,” Ms. with #WSJbookclub or sign up for band Mbongwana Star, in which producer-turned-rock star who Country artist Chris Stapleton Chevalier said, and while Anne also our newsletter. wheelchair-bound singers Coco commanded the main stage (thus packed a tent to overflowing, his Ngabali and Théo Nzonza fronted earning big type). gruff, soul-inflected voice as af- a funky trio that played with drive Indulging in such self-directed fecting as always. Seventy-six- and elasticity. programming mirrors how today’s year-old Mavis Staples mixed folk, Coachella ’16 has been espe- popular music ignores not only ge- gospel and soul, jumping from cially internationally minded, with ography, but genre, too. Coachella early-’60s tunes to a cut from her rap from South Korea via Epik presents more dance music than 2016 album, “Livin’ on a High High; a rejuvenating take on reg- any other kind of popular form, Note.” gae by Jamaica’s Chronixx and but guitar-based rock was well By offering so many tiny-type Protoje; ballads by the songstress represented. High points, in addi- acts for discovery and ensuring at- Tei Shi, a native of Argentina; and tion to the above-mentioned tiny tendees can program their own clever jazz-minded electronica by typers, included Autolux, Dan Au- Coachella, the festival announced, Austrian producer Parov Stelar. In erbach’s the Arcs (with a guest ap- however subtly, its intention to re- the Yuma tent, the air-conditioned pearance by Joe Walsh), the Last flect not only how contemporary dance club on the festival grounds, Shadow Puppets, Unknown Mortal music is accessed—by choice a range of slinky, seductive house Orchestra and the powerful quar- rather than dictated by commer- music was spun by producers from tet Savages. Then there was Court- cial classifications—but also to Indonesia, Nigeria, South Africa ney Barnett, a priceless gem who suggest that multicultural cross- and Venezuela. appeared in tiny type in 2014 at pollination may provide a wealth On Friday, concertgoers could her first Coachella and continues of artists in the years ahead. have programmed a personal bill to dazzle with her insightful song- comprising only acts from France: writing, raucous electric guitar Mr. Fusilli is the Journal’s rock FEMINISM FROM A GOVERNESS Tracy Chevalier in New York last month.

Ibeyi, the twin sisters who wove and unassuming stage persona. and pop music critic. ANNIE TRITT FOR THE WALL STREET JOURNAL 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 A12 | Thursday, April 21, 2016 THE WALL STREET JOURNAL. OPINION REVIEW & OUTLOOK America’s Big Banks Obama’s Rendezvous in Riyadh Aren’t the Problem resident Obama arrived in Riyadh assistance would show new seriousness, espe- Wednesday to meet leaders of the Gulf cially as Russia and Bashar Assad ignore a sup- Companies fret about would need to prop up the largest banks P “silos” in which em- if it wanted to avoid financial chaos.” Cooperation Council, and if he senses a posed cease-fire. The Administration could re- ployees obsess about Well, yes. The sentence is a tautol- chill it won’t be the air condi- sist Tehran’s demands to get the wrong thing and ogy. To halt a crisis caused by fears that tioning. America’s traditional How to repair the access to U.S. dollars while miss opportunities be- government might stop propping up the Arab allies feel betrayed by damage to the they test ballistic missiles. cause they don’t see a biggest banks, it would have to prop the President, and it’s not Mr. Obama could also try BUSINESS bigger picture. them up. clear he wants to dispel the U.S.-Arab alliance. to defuse a flap over an effort WORLD Wonkery has its si- The “crisis” in this sentence appears impression. in Congress to let plaintiffs By Holman W. los too, and one of immaculately. In fact, we know where This has been obvious sue the Saudi government Jenkins, Jr. them is too big to fail. the crisis will come from and how it since Mr. Obama anticipated Donald Trump by based on lingering suspicion of its involvement The 2008 crisis did will be transmitted to the financial sys- dismissing U.S. allies as “free riders” in a rein the 9/11 attacks. American courts historically not begin in a handful tem. The Richmond Federal Reserve’s cent interview with Jeffrey Goldberg. The Pres- have upheld the principle of sovereign immu- of too-big-to-fail banks, but in incen- “bailout barometer” shows that, since ident said the Saudis need to learn to “share nity for foreign nations, and the Saudis are tives cast far and wide among home the 2008 crisis, 61% of all liabilities in buyers, mortgage brokers, lenders and the U.S. financial system are now im- the neighborhood” with arch enemy Iran and threatening to sell $750 billion in U.S. assets others to underwrite tax-advantaged, plicitly or explicitly guaranteed by gov- he cast doubt on the value of the Saudi alliance. if the legislation passes. The Saudi threat is one-way bets on home prices. ernment, up from 45% in 1999. “He is clearly irritated that foreign-policy or- probably empty because it would do more to Too big to fail was implicated in only Citigroup estimates that the top 20 thodoxy compels him to treat Saudi Arabia as damage their economy than ours. one way: Fannie Mae and Freddie Mac advanced industrial economies, in addi- an ally,” Mr. Goldberg wrote. Mr. Obama has nonetheless hinted at a were too big to fail in the eyes of their tion to their enormous, recognized pub- Riyadh hasn’t been shy about voicing its dis- veto, but he could balance that politically by own lenders, including the Chinese gov- lic debts, face unrecorded additional may about Mr. Obama’s nuclear deal with Iran declassifying 28 pages of a 2002 Congressio- ernment, which did no due diligence on debts of $78 trillion for their unfunded or his failure to enforce the chemical red line nal report on 9/11, thought to contain incon- the U.S. housing boom because they ex- pension systems. against the Assad regime in Syria. Turki al- clusive evidence that low-level Saudi officials pected Washington to bail them out. Faisal, the former Saudi ambassador to the U.S., might have helped some of the 9/11 hijackers. Much later did the biggest institutions like Citibank and Merrill Lynch The Richmond Federal has said the Administration’s Syria policy “would The more comprehensive report of the 9/11 become threatened with liquidity pan- Reserve says 61% of debts are be funny if it were not so blatantly perfidious.” Commission found “no evidence that the ics and regulatory insolvency. The rea- It won’t burnish Mr. Obama’s legacy to leave Saudi government as an institution or senior son: Market uncertainty over how reg- guaranteed by government. his successor a Middle East of emboldened ene- Saudi officials individually funded the [al ulators would treat their illiquid mies and distrustful allies. The U.S.-Saudi alli- Qaeda] organization.” holdings of exotic Triple-A mortgage ance is nobody’s idea of a marriage of like Sunshine is the best disinfectant, and releas- derivatives that, as history would later Six years after a crisis caused by ex- minds, much less of moral values. But Washing- ing the 28 pages would end some of the 9/11 con- show, were well insulated from the up- cessive borrowing, McKinsey estimates ton has a vital interest in making sure the oil- spiracy theories. A healthier relationship with Ri- tick in subprime defaults. that even visible global debt has in- rich kingdom doesn’t become another failed yadh should also give the U.S. more leverage to We know this because taxpayers creased by $57 trillion, while in the Arab state, or an aggressive freelancer pursu- press Saudi Arabia to cease sponsoring mosques made profits bailing them out from a U.S., Europe, Japan and China growth to ing interests at odds with America’s. that promote Wahhabi fundamentalism. confidence crisis mostly caused, in cir- pay back these liabilities has been slow- cular fashion, by undeft government ing or absent. This is all a reason for Mr. Obama to demon- Mr. Obama has squandered most of his cred- itself. In their desperation to avoid the real strate that the U.S. isn’t conceding Iran’s ascen- ibility in the Middle East, but at least he has Big banks aren’t automatically bad problem, central bankers lately have dancy in the region. Providing Syria’s belea- an opportunity to limit the damage even as he or badly managed because they are started bruiting “helicopter money”— guered moderate rebels with real military sheds light on the past. big, but it’s hard to believe big banks the jokey term for printing money and would exist without an explicit and im- giving it to consumers, businesses or plicit government safety net under- governments to spend without incur- neath them. ring an offsetting debt. Clinton’s Negative Majority Big banks are government creations. How does this solve any problem illary Clinton won New York’s primary very negative view of the woman Democrats are In 2008, these creations were the vehi- when so many businesses and house- Tuesday, which means that barring an counting on to hold the White House. cles by which a maladroit government holds are already sitting on cash H turned a housing bust in a few U.S. hoards they are afraid to spend or in- act of God or FBI director Jim Comey— Some of this is explainable by the pounding states into a global financial meltdown. vest? As former Israeli central banker they aren’t the same—she will be the Democratic any candidate takes during a campaign. Bernie They were also the vehicles by which Jacob Frenkel told a conference in It- nominee for U.S. President. So Democrats should Sanders has been portraying Mrs. Clinton as a government promptly halted the panic aly two weeks ago, “What they need is be alarmed by the former first lady’s rising un- tool of the big banks, even if he’s ducked her seri- simply by guaranteeing the liabilities of not money. What they need is confi- popularity. ous ethical problems. the biggest institutions. dence and productive opportunities in The latest evidence But what should worry None of this has changed since front of them.” comes in the new Wall More Unpopular All the Time Democrats is that Bill Dodd-Frank, none of it is likely to Exactly. They need to see their lead- Street Journal/NBC Share of registered voters who have either a somewhat or Clinton’s wife has been change. Too big to fail is wonkery of ers taking actions to restore confi- News poll taken April very negative view of Hillary Clinton, Jan. 2013-April 2016 a national political fig- surpassing irrelevance. dence in the ability of the world’s pre- At the moment, regulators are hand- mier economies to grow and to afford 10-14. A regular feature 60% ure since 1992, and her of this survey asks vot- political identity is waving over the inadequacy of the “liv- their debts. President Obama, it must ing wills” that were supposed to make be said, has been a world-historical ers about their “feelings 55 well known and will be giant banks easier to wind up if they disappointment on this score, a man toward” certain individ- 50 hard to change. stumble—never mind that living wills who ran on and won a strong mandate uals or institutions— All of which means are irrelevant to the circumstances that for bipartisanship in 2008, who chose 45 whether they are very Republicans should be actually cause the solvency of giant instead to concentrate on penny-ante positive, somewhat 40 poised to retake the banks to be questioned and irrelevant liberal wish-list items, a crybaby who positive, neutral, some- White House in No- to the (inevitable) government decision now justifies his choices by citing “Re- what negative or very 35 vember if they nomi- to support them. publican intransigence.” “The biggest American banks, nearly And yet Mr. Obama looks good next negative. In April the 30 nate someone re- poll found Mrs. Clinton motely tolerable. Yet eight years after the financial crisis, are to Bernie Sanders or Donald Trump. hitting a dubious new 25 they may not. Donald still too big to fail,” fretted a New York The question that ought to keep central record of 56% who have Trump reinforced his Times front-pager last week after Fed bankers up at night is whether their 20 and Treasury stress tests. ministrations to buy time for the politi- somewhat or very nega- GOP front-runner sta- 2013 ’14 ’15 ’16 “That suggests that if there were an- cians are only buying politicians time to tive feelings toward her. tus Tuesday with a other crisis today, the government make matters worse. Only 32% have a posi- Source: NBC News/WSJ Poll April 2016 blowout victory in his tive view. home state of New As striking is the negative trend over the past York, but his negative rating in the WSJ/NBC three years. In January 2013, not long after she survey is an astounding 65%. Ted Cruz is disliked How to Start Thinking left President Obama’s cabinet, her net negative by 49%, though he’s less well known, with 21% was 25%. As the nearby chart shows, her unpop- having a neutral view. The Texan finished a dis- ularity has since climbed with only occasional tant third in New York to John Kasich. About a Running Mate exceptions. She broke through negative 40% in Hard to believe, but Messrs. Trump and Cruz the middle of last year, and she hit negative 50% may be the only two Republicans who could lose Vice-presidential nomi- What about the fabled home-state ad- nees make a smaller vantage that vice-presidential nominees in February. In April a remarkable 42% had a to Hillary Clinton. electoral difference are supposed to bring? “The VP Advan- than most political pro- tage,” a new book by political scientists fessionals believe, but Kyle Kopko and Christopher Devine, ex- A Big ObamaCare Exit they matter more for plores state-level election returns since POLITICS governance than ever 1884 and individual data starting in resident Obama claimed credit at a Los ObamaCare’s architecture also makes it eco- & IDEAS before. 1952. The authors’ conclusion: Although Angeles fundraiser last week for “the nomically rational for consumers to wait until By William Vice-presidential presidential candidates typically enjoy a P nominees can symbolize home-state advantage of between three steady progress that happens when peo- they are about to incur major medical expenses A. Galston ple who love this country de- to get covered, and adminis- the presidential nomi- and seven points, vice-presidential can- cide to change it,” and reality America’s largest health tratively created “special en- nee’s desire to bring a didates usually don’t. One exception: divided party back together, as Ronald Long-serving officeholders from small is unlikely to darken his fare- rollment periods” encourage insurer flees after Reagan did in 1980 when he selected states who enjoy their constituents’ fa- well tour. But for everyone such gaming. George H.W. Bush, who embodied the miliarity and affection. else, note that the largest U.S. incurring huge losses. Oliver Wyman calculates Republican Party’s defeated Eastern- While it’s hard to know whether vice- health insurer is quitting that people who signed up dur- establishment wing. presidential nominees had a major elec- ObamaCare. ing one of these windows— Even when divisions aren’t this deep, toral effect in earlier times, one thing is On Tuesday UnitedHealth Group reported a about one of five ObamaCare beneficiaries—are the vice president can represent a strand clear: Since President Jimmy Carter terrific first quarter, with strong performance 10% more expensive than people who join during of the party that the presidential nomi- gave his vice president, Walter Mondale, across nearly all business lines. There was one ex- normal periods and 40% more likely to drop nee doesn’t, as Texas Sen. Lloyd Bentsen important responsibilities in 1977, vice ception: The conglomerate’s insurance exchange their plan later. Meanwhile, the nonprofit Blue did on the 1988 Democratic ticket with presidents have played increasingly cen- unit raised its projected Affordable Care Act Cross Blue Shield Association warned last month Massachusetts Gov. Michael Dukakis. tral roles in governance. They often are losses for 2016 to $650 million from $525 million, that new ObamaCare enrollees had medical costs The vice-presidential candidate can the president’s most influential adviser, also be selected to mobilize a key demo- and they serve as what the military calls after booking $475 million in red ink last year. 22% higher on average in 2015 than people with graphic group, as Geraldine Ferraro was “force multipliers,” as Joe Biden did CEO Stephen Hemsley said ObamaCare’s in- employment-based coverage. in 1984. And presidential nominees can when he oversaw the implementation of stability, small market size and costly patient If UnitedHealth departs all markets, the num- choose their running mates to enhance the 2009 stimulus bill. population “continue to suggest we cannot ber of U.S. counties served by three or more their chances in the vice-presidential This year’s presumptive Democratic broadly serve it on an effective and sustained ba- ObamaCare insurers will fall to 48% from 64% nominee’s home state. The classic exam- presidential nominee Hillary Clinton will sis.” He said UnitedHealth will withdraw to “only today, while the counties with a single insurer ple is John F. Kennedy’s selection of get a torrent of advice about potential a handful of states” in 2017. will rise to 24% from 7%. Texan Lyndon Johnson in 1960. running mates. Reunite the party, some Liberals claim this doesn’t matter because These trends could lead to even larger pre- But there is no evidence these strate- will say, by nominating a candidate from UnitedHealth was insufficiently committed to mium spikes than the new ObamaCare normal. gies work. In 2010, political scientists the party’s populist wing—Ohio’s Sher- ObamaCare, as if it preferred to leave money on This would undermine the sustainability and vi- Bernard Grofman and Reuben Kline as- rod Brown or even Elizabeth Warren. the table. The insurer didn’t plunge head-first ability of the exchanges, as would the other al- sessed the impact of vice-presidential Others will urge the priority of ethnic selection on voters in the general elec- mobilization. into the exchanges in year one of the law like the ternative, which is for other insurers to start tion. In the 11 presidential contests from My advice: Pay attention to the evi- larger industry, but the latecomer expanded to dumping unprofitable ObamaCare plans from 1968 to 2008, they found, the net effect dence and ignore these calls, Mrs. Clin- 34 states in 2016 from 23 in 2015 and four in their portfolios. UnitedHealth spent months call- was at most 1% of the popular vote. ton. It is Bernie Sanders’s responsibility 2014. Mr. Hemsley has been more vocal than ing for changes to the law, which liberals dis- The Gallup Organization examined to bring the party back together, just as most insurance CEOs about the long-term im- missed as empty threats to extract regulatory the vice-presidential debates in elections you did with your generous remarks portance of retail, customer-facing coverage concessions. Whoops. from 1976 to 2008. The median effect for from the floor of the Democratic con- outside of the employer business. He told an in- Observe, too, that Democrats are already pre- both parties was 1 percentage point. vention in 2008. As for ethnic and racial vestors conference last year that he decided to paring for a post-ObamaCare world, as Hillary Public support for the Republican ticket minorities, the tone and terms of this ramp up because he couldn’t believe the Obama- Clinton and Bernie Sanders debate how quickly in 2008 fell from 43% before the Sarah year’s Republican contest and the sub- Care market “would form this slowly, be this po- to move, and how transparently, toward a single- Palin-Joe Biden debate to 42% after- stance of your agenda should be enough ward. Support for the Republican ticket to bring them to the polls. rous, or become this severe.” payer system. The pity is that the policy-free Re- in 1988 actually rose to 49% from 47% Instead, choose a person who can In other words, ObamaCare’s central plan- publican debate hasn’t developed much beyond after that year’s vice-presidential de- help you run your administration and ners can’t put their theories into practice. Nor- promises to “get rid of the lines,” as Donald bate, in which the veteran congressman whose qualifications to serve as presi- mally sedate insurance markets have been roiled Trump put it. With the UnitedHealth exit, add Bentsen was widely perceived as having dent if need be are beyond doubt. When by everything from the federally chartered co- true health-care reform to this year of so many drubbed the young senator from Indi- it comes to the vice presidency, focusing op failures to enrollment well below projections. wasted GOP opportunities. ana, Dan Quayle. on governance is the best politics. 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 THE WALL STREET JOURNAL. Thursday, April 21, 2016 | A13 OPINION Monetary Reform or Trade War

By Lewis E. Lehrman be resolved by a tax solution. But a tem, combined with the official re- And John D. Mueller tax reform is neither necessary nor The Big Disconnect serve-currency role of the world sufficient to rule out currency wars. U.S. net private assets, ofﬁcial reserves and investment position as a share dollar standard, explains why free lmost every candidate for Floating currencies can be depreci- of GDP trade has been getting a bad name. U.S. president in 2016 has ated faster and farther than import Under the floating exchange-rate re- made the case, none more taxes can be adjusted. Rising import Ofﬁcial reserves Private assets Investment position serve-currency system, free trade A intensely than Donald taxes (i.e., tariffs) intensify the very 20% has become no more than a roman- Trump, that Americans problem of protectionism they pre- tic fantasy. have lost jobs and industry because tend to solve. 10 The solution is to establish a level of predatory currency depreciation. A currency issue, or a monetary trade playing field with a system of This neo-mercantilism is practiced by problem, must be resolved by a cur- 0 stable exchange rates among the almost every nation that competes rency and monetary solution. To- nations of the G-20, or at least the with the U.S. What is the solution to day’s monetary problem is the float- –10 G-7, to which emerging countries will this grave problem? ing exchange-rate system, combined conform. Such a solution would re- Mr. Trump proposes protectionism with the dollar’s peculiar global role quire the next president to bring by raising tariffs as much as 45%. as the world’s chief official reserve –20 together the major world leaders to This recalls the Smoot-Hawley Tariff, currency. establish stable exchange rates to which triggered a vicious trade war Foreign countries use expansive –30 avoid trade and currency wars that while Congress debated the legisla- monetary policy to depreciate their inevitably lead to protectionism and tion in 1929 and after President Hoo- currencies relative to the U.S. dollar, –40 sometimes to real wars. This interna- ver signed it in June 1930, just as the hoping to gain a trade advantage by tional monetary solution of stable chaotic interwar monetary system exporting unemployment. Thus the ’76’78 ’80 ’82 ’84 ’86 ’88 ’90 ’92 ’94 ’96 ’98 ’00 ’02 ’04 ’06 ’08 ’10 ’12 ’14 exchange rates would eliminate the was collapsing. true solution can only be a currency Source: Bureau of Economic Analysis burden and privilege of the dollar’s or monetary arrangement that reserve-currency role. doesn’t encourage predatory cur- to rise in the reserve-currency coun- monetary system has become, as in Neither tax nor regulatory nor Trump is right that other rency depreciation. The necessary so- try, relative to other countries, even the depressed 1930s, a disordered ar- budget reforms, however desirable, lution must exclude floating exchange while exchange rates remain (tempo- rangement of floating currencies, will eliminate currency wars. To re- countries seek advantage rates, and substitute a system of sta- rarily) fixed. whereby any country can depreciate store America’s competitive position by devaluing their money. ble exchange rates without official re- For example, since 1955, producer its currency against the dollar. Some in production, manufacturing and serve currencies. prices for manufactured goods have countries even fix their exchange world trade, stable exchange rates But the fix isn’t tariffs. But how? Pursuant to the U.S. Con- roughly tripled in Germany, but more rates to the dollar at an undervalued are the only solution tested in the stitution, the dollar was defined by than sextupled in the U.S.—creating level for long periods, as China did in laboratory of U.S. history—from Pres- Congress as a weight of precious met- never-ending pressure from Ameri- the early 1990s. This is when China’s ident Washington in 1789 until 1971. Ted Cruz seems to agree that cur- als (gold and silver) for most of Amer- can industry to devalue the dollar, industrialization gained momentum Stable exchange rates have proved rency wars, and currency deprecia- ican history, from the Coinage Act of while causing unpredictable swings as the workshop of the world. throughout history to establish the tion by other nations, have had a de- 1792 until 1971. Dollar-denominated in the prices of both countries’ goods The pattern today is for countries, most reliable level playing field for structive effect on U.S. industries, but securities have been used as official expressed in the same currency. even the European Union, simply to free and fair world trade. he opposes Mr. Trump’s tariffs. Mr. reserves by many countries at least As the nearby chart shows, U.S. lower the effective real level of wages There are no perfect solutions in Cruz has said that the best way to since the Genoa Agreement of 1922, net official reserves were already by depreciating their currencies human affairs. But the history of the level the playing field is with his tax and by most countries since the Bret- substantially negative by the 1970s. against the dollar to gain comparative past three centuries suggests that sta- plan, which would tax imports but ton Woods agreement of 1944. Under Moreover, the increase in foreign advantages in international trade and ble exchange rates, resulting from not exports. (He has also advocated both agreements, dollar securities official dollar reserves is matched by by import substitution. In these coun- adoption of currencies mutually con- “sound money and monetary stabil- were redeemable in gold. an equal deficit in the U.S. private tries, local wages are paid in depreci- vertible to gold at statutory fixed pari- ity, ideally tied to gold,” but hasn’t But the experience of both the trade and capital accounts com- ating local currencies, lowering the ties, are the least imperfect solution explained the relation between the failed interwar and Bretton Woods bined—even when private U.S. resi- relative cost of labor. Labor compen- to avoid currency and trade wars. monetary and trade issues.) systems showed that competitive de- dents’ books remain near balance sation today accounts for one-half to Despite the Texas senator’s eco- valuations are only part of the prob- with the rest of the world. two-thirds of the total cost of produc- Mr. Lehrman is the author of nomic sophistication, it is logically lem. By “duplicating” credit, as the Since President Nixon ended dollar tion in every economy. American “Money, Gold & History” (TLI Books, and economically implausible to French economist and central banker convertibility to gold in August 1971, workers are thus at a competitive dis- 2013) and Mr. Mueller is the author solve a monetary problem, created by Jacques Rueff (1896-1978) described the international monetary system advantage with countries that are de- of “Redeeming Economics: Rediscov- predatory currency depreciation, it, the official reserve-currency sys- has been based on the world paper- preciating their currencies. ering the Missing Element” (ISI with a tax plan. A tax problem must tem causes the domestic price level dollar standard. The international This floating exchange-rate sys- Books, 2014). Why We’re Reviewing Asset Management in America ByJacobJ.Lew Congress gave the council the re- economy, to evaluate whether risks porting and disclosure by mutual will work with the SEC and other sponsibility to look across the system may be developing and, if so, what funds would help regulators and in- member agencies to monitor the ef- pponents of financial reform in to address gaps exposed by the crisis, actions could be taken. vestors better monitor and mitigate fect of regulatory developments on O America are cheering a court to identify risks to financial stability Asset management encompasses a potential liquidity risk. financial stability. decision to rescind the Finan- and to respond collectively to those diverse set of corporate structures, The council also found that lever- The council’s unanimous approval cial Stability Oversight Council’s des- risks before they destabilize markets strategies and characteristics. While age is concentrated in larger hedge of the update issued this week is an ignation of MetLife for heightened or damage the economy. investment risk is inherent in capital funds, but that individual regulators important step toward improving the regulatory supervision. FSOC desig- The council has worked carefully markets, FSOC has explored the ac- lack access to the data necessary to stability of the U.S. financial system. nated MetLife after determining that and judiciously in carrying out this tivities across the industry. This week develop a comprehensive under- Going forward, we will gather the material financial distress at the role. It has to date identified only we provided a public update on standing of the risk such leverage information and undertake the analy- company could threaten U.S. financial four individual nonbank financial may pose. FSOC is creating a working sis necessary to better understand stability. Leaving aside whether the companies whose distress could group to address this gap. The group this expanding sector and determine decision will be overruled on appeal, pose a threat to financial stability Assessing risk is vital to will share information to better un- whether further action is needed. Our efforts to depict the court’s decision and that should be subject to height- identify emerging threats derstand fund activities, including review will seek to gather the releas a positive are mistaken and dan- ened supervision. whether their use of leverage poses vant facts and ask the right questions gerously ignore the lessons of the fi- While FSOC’s nonbank designation before they can do damage. potential risks, and to inform the in a prudent and careful manner. We nancial crisis. authority is an important tool, and council on whether additional actions are not making presumptions or Congress passed Wall Street Re- one we will continue to defend, it’s should be considered. jumping to any conclusions; data and form after the crisis with the aim of not the only tool at FSOC’s disposal. FSOC’s asset-management work, fol- Additionally, FSOC’s update high- thorough analysis will continue to uncovering and protecting against FSOC’s examination of a potential risk lowing a multiyear review that in- lighted potential risks and the need guide FSOC’s work. risks to financial stability. A historic doesn’t inevitably lead to the coun- cluded a public conference and a re- for more analysis related to the use It is crucial that we not forget the set of reforms—including increased cil’s taking action—there are no pre- quest for public comment. by asset managers of one or a small history of the recent financial crisis. capital requirements so that financial determined outcomes. Each task that The council has focused on two group of service providers for impor- We must continue to work together institutions bear the burden of their the FSOC has undertaken has pro- main areas—liquidity and redemption tant functions, data collection and re- to identify and respond to emerging own risks and the creation of the ceeded in a data-driven and delibera- risk, and leverage. With respect to porting on securities-lending activi- threats well before we are standing FSOC—have helped bolster America’s tive fashion, careful to avoid a one- liquidity and redemption risk, FSOC ties, and transition plans for certain on the precipice of another crisis. largest institutions and markets, and size-fits-all approach. highlighted the need for robust risk stress scenarios. FSOC is doing its part to learn from the system is far safer and more re- It’s particularly important that management practices to ensure that FSOC’s asset-management review the past so it can lead in the future. silient as a result. FSOC look over the horizon, to where funds are able to meet redemption reflects the collaboration and collec- This is a critical mission that the FSOC brings the entire financial future risks may develop. FSOC has requests from investors. The council tive expertise of all its member agen- American people are counting on us regulatory community together in been examining products and activi- also noted the need for clearer guide- cies. In addition, the U.S. Securities to get right. one place to identify and address ties in the asset-management indus- lines about the extent to which funds and Exchange Commission has issued risks to financial stability. Before the try, a fast-growing sector with in- can hold assets with very limited li- several proposed rules related to as- Mr. Lew is the U.S. Treasury crisis, no single body played this role. creasing significance in the broader quidity, and noted that enhanced re- set-management activities, and FSOC secretary. Broadening the Oversight of a Free and Open Internet By Stephen D. Crocker to the National Telecommunications international stewardship was appro- proposal came from the understand- interests and participants in the and Information Administration priate. Since then, the global Internet ing that maintaining the status quo global Internet community worked oday the global Internet con- that would transition stewardship community has been working on a would risk the single, free and open tirelessly to meet that challenge. T nects three billion of us. While of some important technical func- proposal that assures that such a tran- Internet that we cherish. Hundreds of stakeholders undertook it has grown, the world has tions away from the U.S. to a sition won’t threaten the openness If the U.S. doesn’t transition its an amazing effort that logged more shrunk. Geographic distance has diverse and accountable global In- and freedom of the Internet. stewardship role to the global Inter- than 400 meetings and calls, some become less relevant as we can more ternet community. This proposal guards against “cap- net community, then other govern- 32,000 mailing-list exchanges and easily access information, communi- Why is such a transition needed? ture” by any one group or govern- hundreds of working hours to devise cate and reach new customers. Since the Internet’s inception, the U.S. ment. This is the primary reason the a transition proposal. A plan describ- The Internet has matured because Commerce Department and the Cali- Internet community—along with Stewardship by the global ing how the transition always envi- it is free and open, led by the private fornia nonprofit corporation that I businesses, civil society and other in- sioned could be implemented has economy and based on voluntary head, the Internet Corporation for terest groups—has given its blessing community will guard now been delivered to the U.S. Com- standards. It is built on the princi- Assigned Names and Numbers, have to the changes. against ‘capture’ by one merce Department. ples that define America: free enter- been in charge of coordinating the On March 17, representatives from The proposal reinforces the pri- prise and limited government. global assignment of Internet ad- the Intel Corporation, the Internet group or government. vate economy-led model that has Those same ideals of privatiza- dresses and domain names. In 2014 Society and others told Congress allowed policy to keep pace with the tion frame a proposal recently sent the U.S. government decided a more they supported the transition. The Internet’s growth. What could be U.S. Chamber of Commerce, the U.S. ments may try to move control to or- more American than a world that has Council for International Business, ganizations such as the United a free and open Internet, in which all the Information Technology Industry Nations. Some governments may even stakeholders have a voice in its gov- PUBLISHED SINCE 1889 BY DOW JONES & COMPANY Council, the Software & Information form their own national or regional ernance and no one interest has a Industry Association and others also networks. This splintering would controlling say? Rupert Murdoch Robert Thomson Executive Chairman, News Corp Chief Executive Officer, News Corp approve of the plan. damage the economy and weaken A successful stewardship transi- Gerard Baker William Lewis Business leaders from companies personal Internet use. tion will allow online innovation and Editor in Chief Chief Executive Officer and Publisher such as Google, Verizon, AT&T, This potential threat was under- productivity to continue to thrive. Cisco and Yahoo participated in the stood as far back as 1997, when the What’s more, it will be a validation Rebecca Blumenstein, Matthew J. Murray DOW JONES MANAGEMENT: Deputy Editors in Chief Ashley Huston, Chief Communications Officer; development of the proposal. Aca- U.S. formalized its largely symbolic of the approaches to other pressing DEPUTY MANAGING EDITORS: Paul Meller, Chief Technology Officer; demics from Harvard, George Mason role as steward of some of the Inter- transnational issues such as privacy, Michael W. Miller, Senior Deputy; Mark Musgrave, Chief People Officer; University and other institutions net’s technical functions. It intended online content, interconnection fees, Edward Roussel, Chief Innovation Officer; Thorold Barker, Europe; Paul Beckett, Asia; also weighed in. From the Interna- to move away from this role once taxation and cybersecurity. Christine Glancey, Operations; Jennifer J. Hicks, Anna Sedgley, Chief Financial Officer; Digital; Neal Lipschutz, Standards; Alex Martin, Katie Vanneck-Smith, Chief Customer Officer tional Chamber of Commerce to the Icann was mature enough to operate This transition, maintaining the News; Ann Podd, Initiatives; Andrew Regal, Video; OPERATING EXECUTIVES: Center for Democracy and Technol- without the U.S. as a backstop. global Internet’s role as an incubator Matthew Rose, Enterprise; Stephen Wisnefski, Nancy McNeill, Corporate Sales; ogy, diverse organizations have In March 2014, the National Tele- for innovation and a stimulator of Professional News; Jessica Yu, Visuals Steve Grycuk, Customer Service; voiced support. communications and Information domestic and international economic Paul A. Gigot, Editor of the Editorial Page; Jonathan Wright, International; Daniel Henninger, Deputy Editor, Editorial Page DJ Media Group: These groups understand the vital Administration announced that it growth, merits broad support. We WALL STREET JOURNAL MANAGEMENT: Almar Latour, Publisher; Kenneth Breen, role of the Internet in strengthening wanted to begin the process of sever- owe it to future generations to as- Trevor Fellows, Head of Global Sales; Commercial; Edwin A. Finn, Jr., Barron’s; the global economy. Almost $8 tril- ing its contract with Icann. The gov- sure that the Internet of tomorrow is Professional Information Business: Chris Collins, Advertising; Jason P. Conti, Legal; lion of commerce takes place on the ernment stipulated that Icann re- as free, open and resilient as the In- Suzi Watford, Marketing and Circulation; Christopher Lloyd, Head; Joseph B. Vincent, Operations; Ingrid Verschuren, Deputy Head Internet annually, an example of how main an incorporated U.S. nonprofit ternet of today. Larry L. Hoffman, Production dependent the world economy has entity and would need to be strongly

EDITORIAL AND CORPORATE HEADQUARTERS: become on a single, unified network. accountable to diverse stakeholders Mr. Crocker is the chairman of the 1211 Avenue of the Americas, New York, N.Y., 10036 But there are no guarantees about with an interest in the Internet. board of the Internet Corporation for Telephone 1-800-DOWJONES the Internet’s future. The transition Over the past two years, myriad Assigned Names and Numbers. 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 A14 | Thursday, April 21, 2016 THE WALL STREET JOURNAL. TRAVEL A Season’s Worth of Tips From Champions of Travel Sportswriters have tricks American, he says he almost always gets on the flight that would for late changes, hotels have been more expensive to book and fares to follow teams originally. And instead of staying at the fancy hotels used by the BY SCOTT MCCARTNEY team, he finds Marriotts for under $200 a night. Uncertain where his next busi- The perks help compensate for ness trip would take him but de- all the time away from home. He termined to get low hotel rates, and his wife have never paid for a Mike Monroe booked rooms in five vacation—even their honeymoon. different cities more than a month They always use miles and points in advance. Then he canceled all for airline tickets and hotel rooms. the reservations he didn’t need. Adam Vingan just finished his Such are the lengths sports- rookie regular season covering the writers go at playoff time to chase Nashville Predators hockey team teams around the country on tight for the Tennessean. He values con- budgets. venience over status. If there’s a In the sport of travel, pro bas- direct JetBlue flight, he’ll take that ketball and hockey over two stops on Southwest, even THE MIDDLE writers compete at though he’s building status on SEAT an Olympic level. Southwest. He’s realized he can They study airline book more expensive hotels in and hotel loyalty Canada because the U.S. dollar’s programs as closely as offensive exchange rate is strong. sets and trade rumors. They track And he’s learned that some- cheap fares and upgrades, chart times you just have to punt. A hotel price drops, share late-night snowstorm in Chicago kept him

and airport food strategies and DAVE SANDFORD/NBAE/GETTY IMAGES from getting from Columbus, Ohio, time airport security lines in dif- to Minneapolis for back-to-back ferent cities. Their travel game Road Warriors games last fall, so he just went to plans can be instructional for all Sportswriters interview Stephen Curry of the Golden State Warriors after a game. Writers typically book their own travel the next stop on the road trip, travelers. and swear by strategies like never checking bags, checking hotel rates after reserving, and favoring redeye flights. New York. The paper ran a wire “Sportswriters are among the service account of the Minnesota most savvy travelers out there,” time on the road, including weeks Helene St. James has covered morning flying from Vancouver, Wild game. says Mr. Monroe, a veteran of 32 away from home for spring train- the Detroit Red Wings for the De- British Columbia to Seattle, she To fans, the team reporters can NBA seasons who now covers the ing, but have time to unpack in troit Free Press for the past 10 found herself on a regional jet be celebrities. In 2011 Mr. Monroe, San Antonio Spurs for the online each city, with series lasting two years. When they were in the with only 10 passengers. The crew then with the San Antonio Ex- Rivard Report. to four days. But basketball and NHL’s Western Conference, she relocated passengers to the back press-News, flew to Argentina to The Spurs ended up facing the hockey teams travel as they play— traveled longer distances to Cali- of the plane to adjust the aircraft’s cover guard Manu Ginóbili and Memphis Grizzlies this week in the at a hectic pace, often with games fornia and western Canada and center of gravity. Then the pilot three other Spurs players in an in- first round of the NBA playoffs, a on consecutive days in different typically had platinum status on came back and told the flight at- ternational tournament. His flight fate not locked in until the regular cities. Delta. When the team moved to tendant to move the drink cart to from the domestic airport in Bue- season’s last day. Mr. Monroe Sports road warriors say they the Eastern Conference, trips were the rear as well. nos Aires to Mar del Plata, Argen- knew that once the opponent and love the travel and feel privileged shorter—New York, Boston, Mon- “It felt like my safety depended tina, was canceled when ash from playoff dates were set, fans would to have fun jobs. But hitting six treal—and she fell to gold status, on cans of Coca-Cola being distrib- the Puyehue volcano in Chile grab rooms and prices would soar. cities in 12 days can be taxing. though if the team advances in the uted correctly,” she says. grounded all flights. With very So he booked one-night reserva- Darnell Mayberry, a basketball playoffs she can build up the mile- Jeff Wilson, who covers the limited Spanish-speaking skills, he tions in five cities for all possible beat writer for nine years with the age account. Texas Rangers for the Fort Worth had no idea how he’d get to the playoff dates—that way he Daily Oklahoman in Oklahoma City, “My status depends on their Star-Telegram, will take extra tournament site 250 miles away. wouldn’t have to modify a reserva- recalls nights working until 1 a.m. status in the playoffs,” she says. flights on American Airlines to Then a man tapped him on the tion and have the hotel reprice at filing stories and blog posts, fol- She never gets on a plane with- build status. He might fly from Se- shoulder saying, “You’re Mike higher rates. lowed by a 5:30 a.m. flight to get out a bottle of water, and never attle to Dallas-Fort Worth by con- Monroe from San Antonio.” Danilo Players fly in luxury on a team to the next city. checks a bag. TSA’s PreCheck and necting in Los Angeles instead of Ventura, from Cordoba, Argentina, charter after the game, typically Mr. Mayberry picked Southwest airline Wi-Fi have made her job taking a nonstop flight, or make a regular reader of Mr. Monroe’s getting private security screening Airlines as his airline and Marriott easier, and she invested in a laptop mileage runs at the end of the Spurs coverage online, was headed and whatever fancy food they as his preferred hotel chain and with much longer battery life than year—cheap flights just to reach to the same tournament. He and want. (Delta Air Lines has a spe- achieved top-tier benefits with the one the newspaper issued to the threshold to keep his platinum his friends chartered a bus and in- cial fleet fitted for team travel.) both, like priority seating and her, since only about half the status. sisted on buying Mr. Monroe’s But print reporters almost never early check-in. “Every way you planes she finds herself on these Mr. Wilson books the cheapest ticket. fly on team planes. could work it I tried to work it,” days have power outlets. flight he can find, then uses his “We became great friends,” Mr. Football writers fly no more he says. But NBA travel was such a And like anyone who travels, status to switch to more conve- Monroe says. “I have no idea what than once a week for away games. grind that this season he opted for she found some airplane episodes nient flights through the standby I would have done if he hadn’t rec- Baseball writers spend the most a desk job. can be nerve-racking. One early list. With platinum status on ognized me.” Weather TheWSJDailyCrossword| Edited by Mike Shenk Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day. -15 1234 56789 10111213 66 Pentathletes’ 26 Unbearable -10 needs suspense, say Riga -5 14 15 16 67 Percolate 30 Ring Glasgoww 0 Moscowco 17 18 19 Down CoCCopenhagenp h g 5 31 Shoots a four on, 10 20 21 22 1 LeBron, e.g. perhaps 15 Berlinli 2 Support gp. 33 White shade DbDublin Warsawarsaw 23 24 25 26 27 AAmsterdamd 20 since 1941 34 Sen. McCain’s 25 28 29 30 31 London 3 Cornea alma mater Frankfurtkf 30 Brussels Kieve concealer 36 Attention PraPragueg 35 32 33 34 35 36 37 getter Munichih 4 Samples label PParis 38 39 40 Vienna Warm 5 Block 37 Sites of some Budapest 41 42 43 vaults Geneva Cold 6 Hill of NBC News 39 Tureen Milan Bucharesth 44 45 46 7 Pro fighter Stationary accessory 8 Without 47 48 49 50 51 43 Sucker deals Showers warranty Rome Istanbultb 45 Amazingly 52 53 54 55 9 End of a Madridd id Rain enough 56 57 58 59 60 61 celebration LisbonL b 46 Minuteman’s T-storms 10 Rivals of the 62 63 64 place Algiers AthensAth BMW Z4 TunisT i Snow 47 Appropriate 65 66 67 11 Bake sale items Flurries 48 Musical whose Rabatb showing signs of MISSING MASTERPIECE damage? roles include Ice | FDR Global Forecasts Today Tomorrow Today Tomorrow By Mark McClain & Victor Fleming 12 Hiccup cure, City Hi Lo W Hi Lo W City Hi Lo W Hi Lo W perhaps 50 Movie climax, Across often s...sunny; pc... partly cloudy; c...cloudy; sh...showers; Geneva 21 11 pc 16 11 t Ottawa 22 10 c 16 0 c 28 Subject of the 47 Present-day 13 Pushes to the t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice Hanoi 29 24 c 33 25 c Paris 20 11 pc 16 8 sh 1 Fanatic following 2016 film “Race” music limit 51 Bartender’s Havana 30 18 t 31 18 sh Philadelphia 24 16 pc 25 13 t bowlful Today Tomorrow 29 Say “nay,” say Hong Kong 29 25 sh 29 24 sh Phoenix 35 20 s 34 19 s 5 After-dinner 49 Dwarfs 18 Does a summer City Hi Lo W Hi Lo W 53 Top Honolulu 29 21 pc 29 22 sh Pittsburgh 23 15 sh 21 9 sh request 32 Can 52 Way to walk job? Amsterdam 15 6 pc 11 4 pc Houston 25 16 t 27 14 pc Port-au-Prince 33 23 t 33 22 t 10 Niagara sight Rover 22 Guesstimate 54 Not hang onto Anchorage 12 5 s 12 5 pc Istanbul 18 12 s 20 13 s Portland, Ore. 24 13 c 20 11 sh 33 Government Athens 21 12 s 23 14 pc Jakarta 32 26 t 32 25 t Rio de Janeiro 33 26 s 33 26 t 14 “Heat of the office 55 Biggest city on qualifier 58 “Meet me ___ Atlanta 27 17 c 24 15 t Johannesburg 24 10 c 24 15 s Riyadh 32 20 pc 32 21 pc Moment” band 35 Swabbed the Big Island 23 Capital at the the first cock Baghdad 35 19 s 35 18 s Kansas City 20 9 pc 22 8 s Rome 21 11 pc 19 12 pc crow”: Oberon 15 Resulted specimen 56 “Lay it ___!” foot of Vitosha Baltimore 25 15 pc 23 12 t Las Vegas 33 19 s 30 14 pc Salt Lake City 27 14 s 28 13 pc Mountain 59 Gap buy Bangkok 37 29 pc 37 29 t Lima 25 19 c 26 20 c San Diego 24 16 s 21 16 pc 16 Member of 38 What a QB 57 High-quality Beijing 30 11 s 25 10 s London 15 7 pc 11 4 sh San Francisco 20 14 pc 18 12 r an empire doesn’t want 24 Special delivery? 60 Dug in Berlin 14 4 s 12 3 pc Los Angeles 26 13 s 21 13 pc San Juan 28 24 t 28 25 t paving goo? conquered in 39 Apt alternative 25 How poets drive 61 Future Bogota 21 12 r 20 11 r Madrid 18 8 t 18 8 t Santiago 22 12 pc 17 10 c 62 Knight’s the 16th century title for this onto interstates? music Boise 30 15 pc 28 10 c Manila 35 26 s 36 26 s Santo Domingo 31 21 t 31 22 t backers Boston 21 11 s 22 11 sh Melbourne 22 14 sh 17 13 pc Sao Paulo 31 21 s 30 20 t 17 Those in-flight puzzle Brussels 17 7 pc 12 4 sh Mexico City 24 9 t 24 12 t Seattle 22 13 c 19 12 sh Previous Puzzle’s Solution Stoli bottles? 40 Litter unit 63 Portrait painter Buenos Aires 21 9 s 20 15 pc Miami 28 23 pc 28 22 pc Seoul 19 8 r 19 6 s who became an CRABS L IMB P I SA Cairo 37 21 s 35 20 s Milan 21 10 pc 22 12 pc Shanghai 26 16 c 24 14 pc 19 Battler of Hector 41 Pale wood inventor LAS I K ECRU RCAS Calgary 23 5 pc 18 4 pc Minneapolis 20 5 sh 18 8 pc Singapore 33 28 pc 33 27 c at Troy ANKLE SA I LBOATS Caracas 30 25 pc 31 26 t Monterrey 32 16 t 29 18 t Stockholm 12 1 sh 8 -1 sh 42 Vacates 64 Greek salad MG S DASH BOSN I A Charlotte 27 16 c 25 14 t Montreal 20 10 pc 17 3 r Sydney 25 17 s 23 17 t 20 John King Jr.’s P I TT GONG MYWAY 43 Frees topper SNOWMEN ALP ATE Chicago 21 6 c 12 3 pc Moscow 11 4 sh 11 1 r Taipei 31 23 pc 30 23 t cabinet dept. 44 Cause to be ILL ATL VIED Dallas 25 14 r 26 13 s Mumbai 33 26 pc 32 26 pc Tehran 24 13 s 26 15 s 21 Height 65 Film that won POCKETROCKETS Denver 18 4 s 23 7 s Nashville 22 15 t 23 13 pc Tel Aviv 30 18 s 28 17 s cherished Best Costume DARE SHE OER Detroit 20 11 sh 17 4 pc New Delhi 41 26 pc 41 24 pc Tokyo 20 16 r 25 15 pc USD LSU COWBOYS 23 Didn’t draw 46 More than a Design at the THEME G I R L S LOT Dubai 31 22 s 31 23 s New Orleans 27 20 t 26 18 t Toronto 15 11 sh 17 1 pc 27 Reveals skirmish 1981 Oscars IMREAL CUJO DRE Dublin 12 6 pc 10 2 pc New York City 23 15 pc 23 12 t Vancouver 18 9 c 16 9 sh FISHHOOKS KEVIN

Edinburgh 13 3 pc 10 1 pc Omaha 20 6 pc 21 8 s Washington, D.C. 25 18 pc 24 15 t s UNIT STET EDICT Frankfurt 19 7 pc 16 6 pc Orlando 28 18 pc 29 18 t Zurich 20 7 pc 17 9 t Solve this puzzle online and discuss it at WSJ.com/Puzzles. LANA ETSY DUCKS

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INSIDE: MONEY & BUSINESS & TECH. INVESTING Tougher Questions United Settles Board Fight On ECB Actions Deal staves off feud over company’s future BUSINESS NEWS | B4 FINANCE | B5 BRENT LEWIN/BLOOMBERG NEWS © 2016 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Thursday, April 21, 2016 | B1 Shipping Alliance Takes Shape Mitsubishi BY COSTAS PARIS Inflated Shipmates Some of the world’s biggest The new Ocean Alliance is scrambling the makeup of the world's Cars’ Fuel container operators, including biggest container-ship operators. China’s Cosco Group and BEFORE AFTER France’s CMA CGM,have agreed to form a new shipping Maersk Line Maersk LIne Economy alliance that will rival the dom- 2M 2M BY YOKO KUBOTA inance of giants Maersk Line Mediterranean Shipping Mediterranean Shipping and Mediterranean Shipping TOKYO—Mitsubishi Motors Co. in the lucrative Asia-to-Eu- Hapag-Lloyd Hapag-Lloyd Corp. said employees improp- rope ocean trade. erly manipulated fuel-econ- The grouping, to be called Hyundai Merchant Marine Hyundai Merchant Marine omy data to inflate mileage re- the Ocean Alliance, also will in- G6 sults on at least 625,000 clude Hong Kong’s Orient MOL MOL vehicles, the latest self-in- G6 Overseas Container Line and flicted wound by an auto Nippon Yusen Kaisha Nippon Yusen Kaisha Taipei-based Evergreen Ma- maker. rine. OOCL CMA CGM The company also said it The formation of the alli- had violated Japanese law by ance is subject to regulatory Neptune Orient Lines Neptune Orient Lines deploying an improper fuel- approvals from the U.S., the economy testing method in European Union and China, all CMA CGM OOCL some vehicles in Japan since of which have closely scruti- Ocean 2002. It was unclear whether Alliance nized a series of full-blown tie- Ocean China Shipping Evergreen this affected fuel-economy in- ups and looser partnerships re- 3 formation provided to custom- cently in the container- United Arab Shipping China Shipping ers. Japan’s transport ministry shipping business. has started investigating the The Wall Street Journal re- Cosco Cosco auto maker, officials said. ported the formation of the al- Shares in Japan’s sixth-big- liance on Tuesday. Evergreen gest auto maker plunged on The Ocean Alliance eventu- the disclosure, closing down ally will make room for Singa- CKYHE Hanjin Shipping Hanjin Shipping 15% at ¥733 ($6.74) in Tokyo. pore’s Neptune Orient Lines “We express deep apologies Ltd., which agreed to be bought “K” Line CKYHE “K” Line to all of our customers and in December by CMA CGM. stakeholders for this issue,” Cosco Group and China Ship- Orient Overseas Container Line will be part of the new group. Yang Ming Yang Ming Mitsubishi President Tetsuro Sources: Alphaliner (before); staff reports (after) THE WALL STREET JOURNAL. ping Group, meanwhile, have TIM RUE/BLOOMBERG NEWS Aikawa said in a news confer- agreed to merge, a deal that ence on Wednesday, bowing would bring the combined Chi- By entering into alliances— Some shipping customers eign carrier alliances to ensure change the assignments for ex- deeply. “I feel the difficulty of nese firm under the auspices of in which firms share every- also have raised concerns that their actions do not result ports. ensuring thorough awareness the new alliance. thing from ships to port opera- about the spread of vessel- in a logistics network within Container-ship operators about compliance among all The China Shipping-Cosco tions—companies can cut sharing agreements in recent the ports that adds more truck say alliances offer better ser- employees.” merger has been approved in operational costs. years, saying they make han- trips and congestion to an al- vice through their combined Beijing but needs a regulatory Regulators, however, have dling shipments at ports far ready overloaded port infra- network, compared with indi- green light in Europe and the studied recent consolidation more complicated and costly. structure.” vidual operators. Their shared Its minicar mileage U.S. efforts and the various alli- Tyson Foods Inc., which ex- Perry Bourne, director of in- resources give cargo owners ratings were off by Such alliances have taken on ances to prevent the domina- ports more than 50,000 ocean ternational transportation at more frequent sailings at the increased importance in a tion of certain trade routes by containers of frozen food and Tyson, who testified on behalf best price, they have argued. between 5% and global-shipping industry buf- individual players or small other animal products annually, of the Agriculture Transporta- Maersk, owned by Danish 10%, the firm said. feted by overcapacity and groups of them. Such concen- asked the U.S. Senate Com- tion Coalition, said customers shipping and energy conglom- slowing volumes. While freight trations could lead to pricing merce Committee on Wednes- often must move containers erate A.P. Moeller-Maersk rates have fallen sharply in re- leverage when industry funda- day to press the Federal Mari- between port cargo terminals A/S, MSC and CMA CGM—the The fuel-economy and test- cent years, the industry re- mentals pick back up, regula- time Commission for “a more to get their goods to the right world’s top three container op- ing problems likely will hurt mains highly fragmented. tors worry. thorough review of these for- ships as carriers in alliances Please see SHIPS page B2 Mitsubishi’s profit, Mr. Aikawa said. Its earnings had been rising amid robust global auto demand. The company is re- Latest Model Launch Tests Tesla’s Mettle viewing whether any cars sold outside Japan are affected. Mitsubishi’s admission is BY MIKE RAMSEY 2020, most of which will be the latest instance of a global the Model 3, a sedan intended auto maker caught manipulat- Anne Carter had her Tesla to compete with mass-market ing vehicle data, with Volks- Motors Inc. Model X sport- brands like Chevrolet. wagen AG embroiled in an utility vehicle for a few days The company’s car deliver- emissions-testing scandal. It before the $138,000 electric ies—a metric closely watched also comes after more than a vehicle suffered a mechanical by investors and analysts—fell decade of repeated quality malfunction. short of the first quarter goal lapses and recall failures at On a recent morning, the by 1,200 units, or nearly 10%. Mitsubishi, denting its efforts car’s falcon-wing doors Parts shortages were partially to rebuild its image. wouldn’t open as she prepared to blame, but so were sourcing The improper testing was to drive her children’s carpool changes that came late in pro- conducted on four Mitsubishi- to school. “It’s a bummer; you duction planning. Tesla took made minicar models sold in spent all this money…and the the rare move bringing the Japan, including two supplied doors won’t open,” she said in manufacture of middle seats to Nissan Motor Co., Mitsubi- an interview while waiting for in-house not long before the shi said. Minicars carry 660 the Model X to be picked up car’s launch. cubic centimeters engines and for repairs. She expected some Jon McNeill, Tesla’s presi- are sold only in Japan. issues, but feels embarrassed dent of sales and service, said Publicly released fuel-econ- that friends might think: the company is rapidly re- omy numbers were off by be- “Look at the Carters—they sponding to issues, many of tween 5% and 10%, Mitsubishi

spent all this money and the STEPHEN LAM/REUTERS which have been addressed executives said. The problem doors don’t work.” Tesla Motors CEO Elon Musk presented the Model X SUV in Fremont, Calif., in September. through a software fix down- was discovered after Nissan During a critical time for loaded to customers through noticed discrepancies in data the pioneering electric-car can deliver vehicles in high ing to ensure a smooth launch pairs are made and is provid- over-the-air updates. used to calculate fuel economy, maker, its well-to-do custom- volumes without a hiccup. next year of its first affordable ing loaner vehicles to some. “The customer satisfaction they added. ers are confronting problems Tesla says it is quickly ad- car, the Model 3. The company’s reputation levels for owners of the Model Following a probe, Mitsubi- with the Model X’s rear doors dressing its manufacturing Earlier this month, Tesla re- has suffered. Online forums, X are about the same as the shi found that employees ma- and other issues, including a problems. And improving its called 2,700 Model X cars to Facebook groups and auto re- Model S,” Mr. McNeill said, re- nipulated certain data that the seat latch the company has re- ability to bring high-quality fix a third-row seat latch that viewers and competitors point ferring to the sedan that Tesla company is required to submit called. Whether the Palo Alto, vehicles to market is a priority could come undone and allow to the Model X’s problems as a launched in 2012. The falcon- to the government. That data Calif., car maker can quickly for Chief Executive Elon Musk. the seat to fold forward during reason to be skeptical about wing door problems “are is used to set parameters for resolve these new-model Senior executives are meeting a collision. The company has the company’s plan to ramp up largely behind us.” fuel-economy tests. glitches and avoid them in the weekly with personnel from advised owners to keep pas- its output. Tesla aims to build Some owners are still wait- Instead of providing the av- future will be key to proving it engineering and manufactur- sengers from that row until re- 500,000 vehicles a year by Please see TESLA page B2 Please see FUEL page B2 Daily Mail Remains Tech Firms Dominate U.S. Top-Paying List

BY GEORGIA WELLS Consulting firms such In Talks Over Yahoo as A.T. Kearney Inc. and BY LUKAS I. ALPERT Vista Equity Partners also were The tech industry, where a PricewaterhouseCoopers AND TAPAN PANCHAL among the bidders, people fa- dearth of talent is driving an- LLP’s Strategy& are the only miliar with the process said. nual salaries well above businesses that top tech com- LONDON—Daily Mail & The Wall Street Journal re- $100,000, dominates a new panies, according to the General Trust PLC hasn’t sub- ported April 10 that a possible list of the top-paying compa- study. Juniper Networks Inc., mitted a bid to purchase Ya- bid by the Mail could take one nies in the U.S. a maker of networking equip- hoo Inc. and remains in talks of two forms. In one scenario, Companies including Al- ment, is the highest-paying with other parties that are in- a private-equity partner would phabet Inc.’s Google, Face- tech company on the list, terested in the U.S. Internet aim to acquire all of Yahoo’s book Inc. and Twitter Inc. all coming in at No. 3 with me- giant, the U.K. media group U.S. operation, with the Mail pay median compensation of dian compensation of said Wednesday. taking over the news and me- at least $150,000 a year, ac- $157,000. Visa Inc. is the only A person familiar with the dia properties. cording to a study pub- company outside tech and matter said the Mail is con- In the second scenario, the lished on Wednesday by on- consulting to break the top tinuing talks about joining private-equity firm would ac- line career site Glassdoor 25. with a private-equity firm that quire Yahoo and merge its me- Inc. Technology firms cur- “In technology, we con- did submit a bid for Yahoo. dia and news properties into a rently make up 20 of the 25 tinue to see unprecedented Telecom giant Verizon Com- new firm that would include highest-paying companies in salaries as the war for talent munications Inc., buyout firm the Mail’s Web properties, Dai- the U.S., according to salary is still very active, largely due

TPG, and an investor group lyMail.com and Elite Daily. The data users provided to Glass- to the ongoing shortage of SCOTT CARSON/ZUMA PRESS that includes Bain Capital and Mail would run that business. door. Please see PAY page B3 Median pay at tech companies in the U.S. is $150,000 a year. 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 B2 | Thursday, April 21, 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 F P ABB...... B2,B4 Facebook...... B1,B3 PAR Capital ABB’s Profit Declines 11% Alibaba Group...... B3 G Management...... B4,B8 PricewaterhouseCoopers Amazon.com...... B3 Goldman Sachs GroupB7 A.P. Moeller-Maersk...B1 ...... B1 BY JOHN LETZING Guidewire Software...B3 R Apple...... B3 H ARM Holdings...... B3 Rakuten...... B4 Huawei Technologies..B3 ZURICH—Swiss power-grid A.T. Kearney...... B1 Rio Tinto...... B8 Hyundai Motor...... B2 and automated-equipment Australia & New S Zealand Banking I maker ABB Ltd. said its first- Samsung Electronics..B3 Group...... B3 Intel...... B3 quarter profit fell less than ex- San Antonio Spurs...A14 B J pected amid declining energy Standard Chartered....B3 Bank of Tokyo- Juniper Networks...... B1 Syngenta...... B2 prices and slower economic Mitsubishi UFJ...... B7 K T growth in China. BHP Billiton...... B4,B8 Profit was bolstered by a C Kia Motors...... B2 Tencent Holdings...... B3 Kuwait Petroleum...... B5 Tesla Motors...... B1 $200 million bump in cash Cadence Design L Toyota Motor...... B4 flow from operations, Zurich- Systems...... B3 Twitter...... B1 based ABB said. Shares of ABB Lexmark InternationalB4 China Shipping U rose nearly 4% Wednesday. Container Lines...... B2 Lloyds Banking Group B8 M Uber Technologies...... B3 Net profit fell 11% to $500 China Shipping Group.B1 million, from $564 million in CMA CGM...... B1 V Maersk Line...... B1 the year-earlier first quarter, Coca-Cola...... B4 Mediterranean Verizon Commerzbank...... B8 Shipping...... B1 Communications...... B1 while revenue fell 8% to $7.9 Continental Mitsubishi Motors...... B1 Virgin Money Holdings billion. Resources...... B8 Mizuho Bank...... B7 (UK)...... B8 Analysts had expected net D Morgan Stanley...... B7 Visa...... B1 profit of $437 million and VMware...... B3 Daily Mail & General N $8.05 billion in revenue. Volkswagen...... A1,B1,B8 Trust...... B1 ABB said a stronger U.S. Neptune Orient Lines.B1 W DBS Bank...... B3 Nissan Motor...... B1 dollar cut into its reported E O Woodside Petroleum..B4 revenue figure in the period by Y Evergreen Marine Orient Overseas about 5%. (Taiwan)...... B1 Container Line...... B1 Yahoo...... B1,B3 During a conference call

with reporters, ABB Chief Ex- KRISZTIAN BOCSI/BLOOMBERG NEWS ecutive Ulrich Spiesshofer ABB, which supplies robotics for manufacturing, said it is making progress on its profit margins. INDEX TO PEOPLE cited the company’s success in boosting profit margins, cash riod “solid.” $9.3 billion. Growth remains “modest” A G Ramsay, John...... B2 flow and its backlog of orders Recent struggles for the oil The company said it had a in Europe, ABB said, which has Aikawa, Tetsuro...... B1 Gottweis, Bernd...... A2 Rechtin, Mark...... B2 despite tough market condi- and gas industry, in addition difficult comparison to the combined with geopolitical Al-Khaled Al-Sabah, J Ross, Jim...... B5 tions in the quarter. to weaker demand in develop- “significant large orders” tensions in other parts of the S Talal...... B5 Jensen, Lars...... B2 He also deemed the coming economies such as China— booked in the same period last world to create difficult condi- al-Saleh, Anas...... B5 L Saadé, Rodolphe...... B2 pany’s bid to turn around its a key market for ABB—have year. tions. B Schapiro, Mary...... B7 power-grids business “success- hindered the performance of a Looking ahead, ABB cited “a ABB’s CEO said in a state- Ledwith, Brad...... B2 Segars, Simon...... B3 Barua, Chriantan...... B8 M ful.” number of international indus- mixed picture with continued ment that the company’s stra- Blessing, Martin...... B8 Spiesshofer, Ulrich.....B2 Analysts at J. Safra Sarasin trial equipment makers such uncertainty.” tegic portfolio review of its C Maynard, Andy...... B8 Stein, Kara...... B7 McNeill, Jon...... B1 W noted that ABB topped expec- as General Electric Co. and The company said it expects power-grids division contin- Chadha, Rahul...... B5 Moriarty, Kathleen.....B5 tations for both profit and or- Siemens in addition to ABB. further growth in the Chinese ues, and that ABB plans to dis- Chamberlain, Andrew.B3 Wattret, Ken...... B7 ders in the quarter, and called ABB said first-quarter or- economy this year, albeit at a close related details in Octo- Muaddi, Samy B...... B5 Y D-F Mueller, Matthias...... B8 its overall results for the pe- ders declined 11%, to roughly slower pace than last year. ber. Yeung, Catherine...... B8 Diess, Herbert...... B8 Musk, Elon...... B1 Z Dobroski, Scott...... B3 N-R Ferragu, Pierre...... B3 Nakao, Ryugo...... B2 Zielke, Martin...... B8 TeliaRevenue Hit by Eurasia Troubles BY MATTHIAS VERBERGT taxes, depreciation and amor- profit shrank 41% to 1.01 bil- tries, including Uzbeki- Syngenta Acquisition tization from continuing oper- lion kronor on a 30% slide in stan, where its operations STOCKHOLM—Nordic tele- ations “to be in line or slightly revenue to 3.80 billion kronor. have come under scrutiny of communications operator Te- above” last year’s, the com- Telia’s activities in the region prosecutors, and focus on its On Track to Close lia Company AB reported a pany said on Wednesday. were reported as discontinued. core operations in the Nordic 4.9% decline in first-quarter Telia, previously known as Telia, 37.3% owned by the and Baltic region. BY BRIAN BLACKSTONE concerns. net profit, partly from a sharp TeliaSonera, said its net profit Swedish state, said the overall Telia expects to have com- On Wednesday, Syngenta decline in revenue from its op- for the three months fell to decline in revenue was partly pleted its divestment in Eur- ZURICH—Syngenta AG reported that first-quarter erations in Eastern Europe and 3.91 billion Swedish kronor due to a “highly competitive” asia by the end of this year, Chief Executive John Ramsay sales fell 7% to $3.7 billion, a central Asia, a region it is exit- ($483.6 million) in the three market serving business cus- the company’s Chief Execu- said regulatory reviews of the decline driven by the stronger ing after bribery allegations. months to end March 31 from tomers and in fixed tele- tive Johan Dennelind said in Swiss seed and pesticide com- U.S. dollar. Excluding the ef- Telia said its overall earn- 4.11 billion kronor in the same phony in Sweden, its most im- an interview with The Wall pany’s $43 billion acquisition fects of currency changes, ings outlook has brightened period a year earlier, but portant market. The number Street Journal last week. by ChemChina are on track, sales were unchanged during even though it has warned of ahead of analysts’ expecta- of subscribers fell to 26.9 mil- Earlier this month, Telia meaning the deal should close the first three months of the future costs related to the tions. Revenue fell 0.9% to lion from 27.3 million in the completed the divestment of by the end of the year. year compared with the same bribery scandal. 20.39 billion kronor, from first quarter last year. its holding in the Nepalese op- “We’re still very much on period last year. Management slightly raised 20.60 billion kronor in the The telecom group said last erator Ncell to Malaysian tele- course for all regulatory re- Sales fell 4% in Europe, Af- its full-year guidance for 2016, same period last year. September it planned to pull coms group Axiata, the com- views,” Mr. Ramsay said in an rica and the Middle East, with earnings before interest, In the Eurasia region, net out of seven Eurasian coun- pany said. interview with The Wall Street though they rose 6% at con- Journal. stant exchange rates. Sales In February, Syngenta were down 2% at constant ex- ordered it, he said. perts to investigate the prob- “However, the result is the agreed to be acquired by gov- change rates in North Amer- FUEL Mitsubishi said it has lem, which could take about same in that the public has ernment-owned China Na- ica. stopped production and sales three months to reach a con- been misled, and Mitsubishi tional Chemical Corp., as Mr. Ramsay said he expects of the four models. It said the clusion, Mr. Aikawa said. will be forced to restate their ChemChina is formally known, the company to adjust to Continuedfromthepriorpage incorrect data involved 157,000 Japan’s transport ministry has fuel economy numbers.” for $43 billion cash. changes in foreign-exchange erage of multiple tests of some cars sold under the Mitsubishi asked other auto makers to Other auto makers also The deal faces regulatory markets, and that currencies parameters, Mitsubishi offered brand and 468,000 Nissan- check for any similar data ma- have disclosed past cases of reviews, particularly in re- should affect Syngenta’s bot- the most advantageous value, branded cars. nipulation, an official said. inaccurate fuel economy and gions with large agriculture tom line by only around $75 executives said. The data is re- Mitsubishi plans to discuss Asked whether he would emissions results. In 2014, sectors including the European million this year. lated to how much resistance compensation with Nissan, ex- step down, Mr. Aikawa said he South Korea’s Hyundai Motor Union, U.S. and Brazil. “We’re trying to match the car experiences from tires ecutives said. It also is study- would focus on resolving the Co. and Kia Motors Corp. The deal faces scrutiny in costs with revenues in the and air when it is running at a ing how to compensate con- issue and compiling prevention agreed to pay penalties for the U.S. given Syngenta’s own- same currency,” he said. certain speed. sumers whose vehicle mileage measures. overstating fuel-economy mea- ership of chemical facilities Syngenta has been able to Multiple employees were in- was worse than advertised, “This is not good news for sures in the U.S. Volkswagen’s there. The Committee on For- raise prices in countries such volved in the data manipula- Mr. Aikawa said. Mitsubishi as they try to re- scandal involves so-called de- eign Investment in the U.S., or as Russia and Ukraine that tion, which was carried out to Nissan is working to sup- build sales in the United feat devices in the engine-con- CFIUS, can review foreign have seen substantial devalua- make the cars’ mileage look port vehicle owners, a spokes- States, but it’s important to trol software used to produce takeovers for any security tions of their currencies. better, said Mitsubishi Execu- man said. It has no plans to note this is not the same issue inaccurate diesel emissions tive Vice President Ryugo Na- change its relationship with as Volkswagen,” said Rebecca data during laboratory testing. kao. The company is trying to Mitsubishi, he said. Lindland, senior analyst for Mitsubishi Motors has a are in for a new round of liner determine how broadly the is- Mitsubishi is setting up a Kelley Blue Book, a vehicle val- history of scandals involving SHIPS shuffling and realignment with sue was known and who had committee with external ex- uation and research company. quality lapses and recall fail- massive pressure on second- ures. In 2000, the company ad- tier players,” said Mr. Karatzas. mitted having hidden vehicle- Continuedfromthepriorpage The world’s biggest opera- Hitting the Brakes defect information for erators by capacity, respec- tors already have been meeting Mitsubishi Motors has been on the upswing but faces a hit over admissions it manipulated fuel-economy data. decades, leading to arrests of tively—agreed two years ago to in recent days with the Federal former company officials. Af- enter into a globe-spanning al- Maritime Commission, the U.S. Revenue Net proﬁt Share price ter an inspection in 2012, liance called the P3 Network. watchdog, the European Com- ¥2.5 trillion¥125 billion ¥1,100 Japan’s transport ministry But that partnership was re- mission and China’s Ministry of said Mitsubishi had inade- jected by Chinese regulators in Transportation on possible new quately reported some defects 2.0 100 1,000 2014. tie-ups. and delayed recalls. Since Maersk and Geneva-based “Chances are that the alli- then, Mitsubishi has set up a MSC, then, formed a less-ambi- ances you see today will 1.5 75 900 “customer-first program” and tious alliance between the two, change significantly,” William has been working to improve called 2M. That alliance con- Doyle, a commissioner at the 1.0 50 800 vehicle quality through em- trols roughly 34% of the Asia- FMC, told the Journal this ployee training and revised ve- Europe trade route, one of the month. hicle-development schedules. world’s most lucrative. CMA CGM and China Ship- 0.5 25 700 Mr. Nakao said the latest The Ocean Alliance would ping Container Lines, the con- Wednesday problems showed the com-

challenge that dominance. tainer unit of China Shipping 0.0 0 600 ¥733 ▲ 15% pany’s overhaul hadn’t gone Rodolphe Saadé, vice presi- Group, currently belong to the FY2010’11 ’12 ’13 ’14 ’15* FY2010’11 ’12 ’13 ’14 ’15* JFMA far enough. “We need to clar- dent of France-based CMA Ocean Three alliance along ify the causes of this problem CGM, said in a statement it was with Dubai-based United Arab Note: Fiscal years begin April 1 *Consensus estimate ¥1 billion = $9.16 million and change procedures within planned as “a very ambitious Shipping Co. The alliance han- Sources: the company; Quick (estimates); Thomson Reuters (share price) THE WALL STREET JOURNAL. the company,” he said. operational agreement,” that dles 22% of all cargo moving he expected would be up and between Asia and Europe. running next April, assuming Cosco currently belongs to a two weeks before the car It will be years until the starting to have tens of thou- regulatory approval. different alliance, called CK- TESLA could be fixed, he was told. Model X’s longer term quality sands of vehicles out in the The Ocean Alliance will op- YHE, made up of Asian opera- “I think to myself, I am will- is well documented, but its fleet.” erate 350 ships across all ocean tors including Evergreen. CK- ing to concede a couple of predecessor, the Model S, has Having cars with a suite of routes, and should have a 26% YHE controls 25% of the Asia- Continuedfromthepriorpage things, but it is just I’m leasing had a bumpy road. Consumer popular features, such as driv- market share in Asia-Europe Europe trade loop. ing for repairs. this car for $1,350 per month,” Reports last year pulled its ing-assist Autopilot functions, voyages, CMA CGM estimates. Regulatory reviews can take Brad Ledwith, a financial said Mr. Ledwith, a former recommendation for the Model Tesla has won the loyalty of “Ocean Alliance is a forced three months or longer. In the adviser from Morgan Hill, Ca- BMW X5 owner. “If it is out S because of reliability prob- many customers—even when but necessary attempt to pro- past, alliances typically ex- lif., got his Model X on the last two weeks, that costs $700.” lems even though reviewers they encounter problems. But vide a market counterbalance pected approval from regula- day of March and loved it, im- Tesla rented a Chrysler loved driving the car so much its ability to move into high- to the massive market share of tors if their combined market mediately hitting the highway Town & Country for Mr. Led- they initially gave it the high- volume production is putting Maersk’s 2M Alliance with share was below 35%. and trying out new features. with. est score ever. that loyalty to the test. MSC,” said Basil Karatzas, who “I expect three main alli- When the falcon wing doors Ms. Carter, also the recipi- Mark Rechtin, a Consumer “I am totally willing to runs New York-based Karatzas ances instead of four going for- gave out only a few days later, entofarental,isgratefulfor Reports editor, said the prod- overlook the issues if Tesla Marine Advisors & Co. ward, and anyone not making it he at first thought his children the customer care but hopes uct review magazine recom- fixes it,” Ms. Carter said, esti- The new alliance—coupled into those groupings won’t be were to blame. Tesla doesn’t replicate that of- mends avoiding new cars in mating one or two trips to the with the recent consolidation able to survive in five years’ After learning the problem fer with the cheaper and the first year of production, dealer should be all it takes. If that has made it possible in the time,” said Lars Jensen, chief was related to manufacturing higher-volume Model 3. “They especially those loaded with she had the same problem on first place—also could force a executive of Copenhagen-based glitches, Mr. Ledwith called his better not offer that,” she said. new technology. “This is one her Cadillac Escalade SUV, she new round of deal making, ana- SeaIntelligence Consulting. local showroom, but Tesla’s “I want to be getting something if you have the white- said she “would be furious.” lysts said. —Loretta Chao service outlet was overloaded thing for paying so much for glove services,” he said. “The —John D. Stoll “There is no doubt that we contributed to this article. with repair orders. It would be my car.” bigger concern is that you are contributed to this article. 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 THE WALL STREET JOURNAL. Thursday, April 21, 2016 | B3

TECHNOLOGY @wsjd | wsjd.com Tencent, Alibaba in a Battle Revenue Rises 22% To Attract Office App Users At ARM Holdings BY STU WOO planned to cut 12,000 jobs, or 11% of its workforce. he war to control of- sages. LONDON—ARM Holdings ARM said Wednesday that T fice communications One controversial feature PLC on Wednesday posted it had increased its head count in China began in ear- on both DingTalk and Enter- strong revenue and profit in by 20% during the past year, nest Monday, when Tencent prise WeChat is location- the first quarter, compared reaching roughly 4,000 em- Holdings Ltd. launched its based attendance sign-in. with a year earlier, though the ployees, and operational ex- Qiye Weixin, or Enterprise Employers and managers British chip designer warned penses in the first quarter WeChat, app. like it, to help know their that economic uncertainty rose to £157 million, up 36% The new app aims to pro- employees’ whereabouts. could slow the industry the from the year-earlier period. tect the phenomenally suc- But some employees resent rest of the year. “Going forward, we are ex- cessful WeChat franchise, the oversight. The Cambridge, England- pecting our operating expendi- and repel a threat from rival Wang Yandi, chief execu- based technology company tures to be more in line with Alibaba Group Holding Ltd. tive of a local classified in- said revenue for the three [quarter-over-quarter] growth, It also offers to help Chinese formation website in Anhui months ended March rose 22% which is more in the single- separate work from life, a province, says he randomly to £276.4 million ($398 mil- percentage range,” Chief Exec- nettlesome problem that asks his salespeople to sign lion), compared with £227.5 utive Simon Segars said in an WeChat helped in with DingTalk to make million a year earlier. Profit interview. to create. sure they’re where they’re grew 7.6% to £91.5 million. The company said it ex-

Alibaba is LI SHENGLI/IMAGINECHINA/ASSOCIATED PRESS supposed to be. ARM makes money through pects revenue for the rest of China’s e-com- Tencent’s Enterprise WeChat app is for work-related communication. Michelle Xie, who works licenses and royalties from the 2016 to be in line with market merce king, at an Internet company in chips it designs. expectations, but added that but has had never taken hold, WeChat is seen more as task master Shanghai that started using While the company currently “macroeconomic uncertainty CHINA little success an important work tool that than helpful tool to separate an early version of Enter- designs the architecture for remains, and could influence CIRCUIT with messag- many companies use for in- work from life. DingTalk is prise WeChat last week, more than 95% of the world’s consumer and enterprise LI YUAN ing and social- ternal and external commu- used as an internal commu- says the feature is too con- smartphone chips, it is seeking spending.” networking nications. nications tool at Alibaba, trolling. “It’s anti-human,” to increase its market share in Sanford C. Bernstein ana- apps. Last That can cause problems. which is famous for its zeal she says. networking infrastructure as lyst Pierre Ferragu said ARM year, it tried again with WeChat began in 2010 as an in fast and efficient execu- The Alibaba spokesman well as the server industry risks falling below expecta- DingTalk, an office-oriented intimate social network. Its tion. says users can turn off the dominated by Intel Corp. tions in the second half of app that it says can “return rapid growth blurred the One feature is called location service. Tencent de- On Tuesday, Intel said it 2016 and in 2017. focus to work.” Lest anyone line between work and life. “ding,” or nail. DingTalk al- clined to comment. miss the message, Alibaba Many Chinese have lows a sender to see Both apps must contend last week posted online vid- stopped exchanging business whether a message has been with the popularity of ADVERTISEMENT eos that portray WeChat as cards and cellphone num- read. If not, the sender can WeChat. Feng Shengnan a source of distraction, bers, preferring to add each “ding” the recipients with works at a private-equity The Mart stress and tardiness at other as WeChat friends. an automated call or text firm in Beijing and has two work. Imagine your family mem- message as a reminder. cellphones and two WeChat The rivalry between the bers, your Facebook friends, “Its goal is, no matter accounts for work and per- ANNOUNCEMENTS companies is intense. Nei- your work colleagues and time or location, a boss can sonal use respectively. ther wants to let the other always reach a subordinate,” Last winter, her boss gain an upper hand in an Business software is says Wang Xiaofeng, an ana- asked employees to start us- emerging technology that lyst at Forrester Research’s ing DingTalk. But the switch ! " # $% & %' in demand as () & * ! #) ! +,( -. could be a big future mar- Beijing office. “It’s a lot of lasted only two weeks, be- ket. Business software is a Chinese companies pressure on the employees, cause employees found that !" # $ %%& ''( ) $ *(& ++ $$ $ hot arena, as Chinese com- while owners of small and they didn’t use DingTalk ((& ++ /0 123 244 " ++, panies seek efficiencies to seek efficiencies. medium-sized businesses very much. “We’re used to 55 6 3771 5$ " - . ' / 0 / * + + . +(1 2( " # '(* 1 offset rising labor costs. For will find it very useful.” checking WeChat all the " 3 " #-4 5 + & 2* &+%$ $ ++*$ 6 4 ! 8 1397 8 now, both services are free, An Alibaba spokesman time, even after work,” Ms. % % ! " ! ! " % ! %))"5 but analysts believe both business contacts using says DingTalk aims to help Feng says. “It’s hard to sep- 0" 4 ++, 6 ! ! $ Tencent and Alibaba can Facebook Messenger to con- users work more effectively arate work from life.” 3 4 2*1 1''$ 3 #7 $ generate revenue from pay- duct simultaneous one-on- so employees can have more For Tan Li, a corporate 0 4 #7 * 2%1''%$ ment processing and other one and group chats while work-free time. Enter- communications officer at a ): /;50105<0/ 5 3 8 /!0!73.39#7 :9)! /0#. services. commenting on each other’s prise WeChat, born of Ten- tech company in Heilongji- $ + & + 1%% 4 + & + *( There is some truth in Facebook news feed. cent’s more relaxed culture, ang, adding an office com- 6 3 74:77 = /9:17 : 74:77 = /3:175 Alibaba’s message. With 697 That is where Alibaba tries to differentiate itself munications app only added . "" "; 0$ $ 0.7!93 ++* 0$.$ *+ 37/0 million monthly active us- saw an opportunity, with a from DingTalk as a consider- another stress factor. / :$ ers, WeChat, or Wexin (mi- work-only app. After 15 ate tool that distinguishes “I get nervous whenever % " )>"' " ( " 3 777 < .3= cromessage in Chinese), months, 1.5 million enter- between work and life. For somebody sends out a Ding- %' 1 777< .3= " 9 777 < plays an important role in prises use DingTalk, some of example, employees can Talk group message,” she .3=#7) ! $#1 3!>(+ + + ?+ 22'* - - 9: * +' + ? %' both Chinese work and life. them from Alibaba’s large post an “off” sign on their says. “Everybody’s phone 1 30; 977 $ #113!>(+ ++ ???+ 22(* - - Roughly 87% of WeChat us- network of Taobao mer- profile pages so they won’t starts ringing at the same /0#. 9: * +' 1 ' /0#. 3 $$ ers say they check it more chants and business part- receive new messages. In time. Then we’ll get the ' % " )>"' " :!! :# 9! 3 . !00 3# .3. .7 97:#6.39#7 .@ 39#7 /.39 9/.39#7 :!! /!0!73.39#7 :9)! than 10 times daily, accord- ners. place of “ding,” Enterprise same message in our QQ /.39 9/.39#7 @..73!! ing to a government survey But some features on WeChat allows a sender to messenger and various !A B 9 0$.$

Business United Settles Watch Board Fight

COCA-COLA With Investors Earnings Decline BY DAVID BENOIT The board fight came at a Amid Flat Volume AND SUSAN CAREY difficult time for United, which Coca-Cola Co. said revenue has been working to overcome and profit declined in its latest United Continental Holdings performance issues that have quarter as soda volume was flat Inc. and two of its big investors dogged the company since amid weakness abroad. have settled a fight concerning United’s 2010 merger with Con- Weakening foreign currencies the makeup of the airline’s tinental. It also began as Mr. also are hitting Coke. The com- board of directors, staving off a Munoz was easing back to work pany has been able to offset bruising public battle about the full time after a January heart that in part by raising prices and company’s future. transplant. steering consumers to smaller United will appoint two di- At the time, United called packages that cost more per rectors chosen by PAR Capital the shareholders’ move a “hos- ounce in its U.S. market. Management Inc. and Altime- tile action.” A day before PAR Overall, Coke posted a profit

ter Capital Management LP to and Altimeter launched their of $1.48 billion, or 34 cents a ELISE AMENDOLA/ASSOCIATED PRESS its board, the companies said fight, United added three inde- share, down from $1.56 billion, Coca-Cola said its profit dropped to $1.48 billion due in part to weakness abroad. Wednesday. A mutually agreed- pendent directors to its 12- or 35 cents a share, a year ear- upon third director also will be member board, including two lier. BHP April 25 and April 28, Toyota tal arm of China-based Legend named in the next six months, with airline experience. Excluding certain items, per- said. That includes lines at the Holdings. Apex makes inkjet and the company said. PAR and Altimeter, longtime share earnings were 45 cents, Iron-Ore Exporter Tsutsumi plant, where Toyota laser cartridge components. The Wall Street Journal had airline investors that don’t typ- edging in above the 44 cents Cuts Output Target makes the Prius hybrid cars. PAG Asia Capital is the pri- reported Tuesday night that ically wage public board fights, analysts polled by Thomson BHP Billiton Ltd. said it Eight assembly lines will remain vate-equity business of PAG, an the airline had struck a deal believed the carrier needed to Reuters had forecast. The com- would produce less iron ore than shut next week, including two investment firm that also has with the shareholders. add even more airline expertise pany said foreign exchange expected this fiscal year, as it lines at the Miyata plant in real estate and absolute return PAR and Altimeter’s board to its board. The carrier chal- shaved 12 percentage points reported a fall in quarterly ship- southern Japan, which is close strategies. picks are former Orbitz World- lenged their claims about the off its per-share earnings in the ments. to the epicenter of the earth- Lexmark will remain in Lex- wide CEO Barney Harford and board’s inexperience, pointing quarter. Revenue fell 4% to The world’s third-biggest iron- quakes that struck Kumamoto ington, Ky., and Chairman and PAR partner Edward Shapiro. to Mr. Munoz’s decade of ser- $10.28 billion. ore exporter said its global output prefecture last week, it said. Chief Executive Paul Rooke is Moreover, United elected vice on United’s board. —Anne Steele of the commodity, stripping out —Yoko Kubota expected to continue leading Robert Milton, a former Air The two sides had engaged the share of partners, was 53 mil- Lexmark after the deal closes. Canada chief executive, as non- in talks for several weeks, ulti- HEINEKEN lion metric tons for the three LEXMARK INTERNATIONAL —Josh Beckerman executive chairman. United mately agreeing on a deal after months through March, down 7% added Mr. Milton and two the board informed the inves- Brewer’s Profit Drops, on the previous quarter. Consortium to Buy WOODSIDE PETROLEUM other independent directors to tors it was planning to change Beer Volume Rise The company consequently Firm for $2.54 Billion its board last month. the chairman to Mr. Milton, one Heineken NV on Wednesday lowered its forecast for the year Lexmark International Inc. Revenue Slumps “When taken together with person said. posted a drop in first-quarter through June to 229 million agreed to be sold to a group of On Oil, Gas Prices substantial changes the board With the addition of Messrs. net profit but recorded a sharp tons, from 237 million tons pre- buyers including China-based Woodside Petroleum Ltd.’s independently has adopted…the Harford and Shapiro and the rise in beer volumes thanks to viously. Apex Technology Co. and Asia- first-quarter sales revenue addition of the two new direc- to-be-named director, half of strong sales in Vietnam and —Rhiannon Hoyle focused PAG Asia Capital for slumped even as volume and tors designated by Altimeter United’s board will have China. $2.54 billion. production rose from a year ear- and PAR will transform our changed in recent months. Net profit was €265 million TOYOTA The companies said the lier, hit by the drop in global oil board governance,” said United Mr. Munoz, who is 57 years ($301 million) in the first three deal—which pays Lexmark and natural-gas prices. Chief Executive Oscar Munoz. old, took the lead in brokering months of 2016, compared with Output to Resume $40.50 a share, a 17% premium Revenue fell to US$982 mil- PAR and Altimeter together the settlement with PAR and €579 million in the same period In Japan Next Week to the closing price Tuesday— lion in the three months through own 7.1% of United’s stock and Altimeter, according to people last year, when results were Toyota Motor Corp. said it had an enterprise value of about March, down 11% on the prior have been pressing since early familiar with the negotiations. lifted by a €375 million gain on would resume car production at $3.6 billion when including Lex- quarter and 30% lower than a March to put more people The former railroad executive the sale of Mexican packaging many of its plants in Japan next mark’s debt. year earlier, the Perth-based with airline experience on the was plucked from United’s company Empaque. week, after scaling back output The Wall Street Journal re- company said. United board. board to take the helm at the Consolidated beer volumes following the recent earthquakes ported in October that the Production for the quarter The hedge funds were push- airline after its prior CEO was rose 7% organically in the period, in southern Japan. maker of printers, enterprise rose 8.7% year-to-year to 23.7 ing for a slate of six director ousted. boosted by strong sales during The auto maker had been software and hardware was ex- million barrels of oil equivalent, nominees to be considered by Mr. Munoz was slated to be- the New Year celebrations in shutting down most of its car ploring alternatives including a although it fell 4.8% on the pre- shareholders at the carrier’s come United’s chairman in Vietnam and China and the ear- assembly lines throughout the possible sale. The deal provides vious quarter due in large part annual meeting later this 2017, but United’s decision to lier timing of Easter. Heineken country this week due to com- a 30% premium to the closing to lower oil volume from Wood- spring, including Gordon Bet- make Mr. Milton nonexecutive said it also recorded good vol- ponent shortages after the price on the day before the side’s North West Shelf asset in hune, a former Continental chairman delays that move un- ume growth in the Americas and earthquakes. Journal report. Australia where planned mainte- chief executive they wanted til at least 2018, some of the Europe. Eighteen assembly lines will The consortium also includes nance was carried out. named chairman. people said. —Maarten van Tartwijk resume production between Legend Capital, the venture-capi- —Robb M. Stewart

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Saudi Arabia Is Set Iron-Ore Cuts Don’t To Borrow $10 Billion Herald Price Salvation DEBT MARKETS | B7 HEARD ON THE STREET | B8 AFP/GETTY IMAGES © 2016 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Thursday, April 21, 2016 | B5

As of 4 p.m. ET EUR/GBP 0.7883 g 0.08% YEN/DLR ¥109.46 À 0.23% GOLD 1253.20 À 0.02% OIL 42.63 À 3.77% 3-MONTH LIBOR 0.63510% 10-YR TREAS g 20/32 yield 1.852% Workers End Their Questions on Oil Strike ECB Actions In Kuwait BY SUMMER SAID Get Tougher Kuwaiti oil workers ended a three-day walkout that had al- BY TOM FAIRLESS come a crucial crutch for the most halved crude output in global economy in the ab- the Organization of the Petro- FRANKFURT—Mario Draghi sence of strong action by leum Exporting Countries’ is struggling to catch a break. other policy makers. It also fourth-largest producer, after The European Central reflects concerns that central the government said it Bank president will face banks are operating at or wouldn’t negotiate while the tough questions at a news close to their limits. workers were on strike. conference on Thursday, de- “We’re clearly getting to Workers returned to their spite repeatedly boosting the point where each addi- jobs on Wednesday “out of re- the ECB’s €1.5 trillion ($1.7 tional dose of easing is not spect for the country’s emir” trillion) stimulus since De- bringing much in term of eco- after successfully showing the cember. nomic outcome,” said Andrew importance of their role in the In Germany, the ECB’s larg- Bosomworth, head of Pimco’s economy, the oil-workers est shareholder, fears are German portfolio manage- union said in a news release. mounting that the central ment team. “Worries are Oil prices fell after the bank is doing too much. Inter- starting to creep in.” news but rebounded. U.S. oil national investors worry it is While Mr. Draghi isn’t ex- futures ended 3.8% higher at running out of monetary-pol- pected to announce new pol- $42.63 a barrel as weekly data icy tools. Europe’s struggling icy measures, investors will showed U.S. output at its low- banks worry that subzero in- listen closely to his comments est level since October 2014. terest rates are eroding their on future interest-rate cuts, Kuwait’s acting oil minister, profitability. Almost everyone the recent strength of the Anas al-Saleh, had ruled out worries about the eurozone’s euro, and prospects for “heli- negotiations with the employ- weak growth and inflation, as copter money,” an extreme ees until they ended their well as political risks such as form of stimulus that involves strike and said the country’s the U.K.’s forthcoming refer- direct distribution of money oil sector would continue to endum on its membership in by central banks to the public. operate despite the strikes. the European Union. Investors initially wel- “The goal in going on strike The intense scrutiny shows comed the ECB’s latest stimu- was to send a clear message,” how central banks have be- Please see ECB page B7 the Union of Petroleum and Petrochemical Workers said in the news release. “The workers reiterated in their action their role” in the economy, it said. Betting on the Next

The workers went on strike HEIDI GUTMAN FOR THE WALL STREET JOURNAL last weekend to protest appar- ‘I tend to concentrate on more-exotic products,’ ETF lawyer Kathleen Moriarty said. ent pay cuts and plans to pri- Leadership Change vatize parts of the energy industry. The government Bitcoin Fund Latest Effort threatened the strikers with n a world of richly valued Muaddi, an emerging-mar- legal action, but union leaders markets and paltry yields, kets-debt portfolio manager had said workers would hold I one way to make money is at T. Rowe Price. out until planned public-sector For ETFs’ ‘Spider Woman’ to bet on political drama. This bet has long been an pay cuts were canceled. The market cheered the obvious if not always profit- The strikes started Sunday impeachment and likely de- able trade in emerging mar- and caused Kuwait’s oil pro- BY LESLIE JOSEPHS vincing regulators that a bit- “I don’t think anyone would parture of Bra- kets. The last wave of change duction to plunge to 1.1 million coin ETF is appropriate for have thought it was going to zil’s Dilma was in 2014, when Narendra barrels a day, from 2.8 million When one of the first ex- the market. That isn’t neces- be this big,” Ms. Moriarty, a Rousseff even Modi took power in India and barrels a day. The action came change-traded funds was sarily an easy sell, given the partner at Kaye Scholer LLP, before Sunday’s Joko Widodo became presi- at a sensitive time, with oil opened in 1993, securities law- explosion of ETFs across the said in an interview this year vote. The next dent of Indonesia. Shares rose prices more than 60% off their yer Kathleen Moriarty re- market and their fraught role at her Midtown Manhattan of- day, investors roughly 20% in India and In- peak of two years ago and ceived a gift from her legal as- in a market meltdown last Au- fice, which was adorned with UNHEDGED were shoving donesia in the months leading countries such as Kuwait com- sistant: a Spider-Man comic- gust. decorative arachnids and the KEN each other to the election and held up peting for oil buyers in a fierce book cover altered to depict “I tend to concentrate on framed comic. BROWN aside to grab a later that year even as other contest for market share. the superhero facing off more-exotic products,” Ms. Ms. Moriarty, who turned piece of Argen- emerging markets tumbled. By Tuesday, Kuwait’s crude against a hulking Securities Moriarty said. “Zero of my 63 years old on Tuesday, tina’s first Changes in governments output had recovered slightly and Exchange Commission. plans include retirement.” helped launch what is still the bond offering since its new matter more today for two to 1.5 million barrels a day as Twenty-three years later, ETFs have grown to become largest U.S.-listed exchange- government took power. reasons: There are few attrac- state oil firm Kuwait Petro- Ms. Moriarty’s ability to navi- one of Wall Street’s most pop- traded fund—the SPDR S&P Despite deep economic tive investment options, and leum Corp. brought more pro- gate the arcane rules that gov- ular product categories by of- 500 ETF, or SPY—paving the troubles in both countries, in- many markets are moving in duction back online. The oil ern financial markets and fering investors low-fee access way in 1993 for a booming investors are betting optimism sync, driven by factors such industry’s spokesman, Sheikh products has built her a repu- to wide swaths of the market. dustry. over new leaders and chang- as commodity prices and U.S. Talal Al-Khaled al-Sabah, said tation as a top lawyer in the Investors had close to $3 tril- “If you’re going to try to do ing policies will drive up stock interest rates. on Wednesday that output in ETF business and earned her lion in assets across nearly something unique and novel in and bond markets. A rally this year has the country will recover grad- the nickname “Spider 4,500 ETFs globally as of that space, you’re going to call “Investors are looking for pushed up emerging markets ually to 3 million barrels a day Woman.” March, according to London- Kathleen,” said Jim Ross, who that rare story that has a cat- 7.3% through Tuesday, comin the next three days. Her latest challenge is con- based research firm ETFGI. Please see ETFS page B7 alyst on it,” said Samy B. Please see BROWN page B7

Payday-Loan Rule Is China Calling Having fled following last summer's stock-market meltdown, global investors are now giving China a fresh look. Monthly net flow into Shanghai Quota of the Qualified Foreign Index performance Shanghai Composite Taking Shape in U.S. from Hong Kong market* Institutional Investor program performance BY YUKA HAYASHI money and their precious time.” 30 billion yuan $100 billion 20% 60% The latest research focused WASHINGTON—Borrowers on online lenders, which, ac- As of April 19 who use payday loans have cording to the CFPB’s estimate, 20 80 16 40 more to worry about than just make up nearly half of the MSCI China† high interest rates: Many end small-dollar market. At tradi- 10 60 12 20 up paying hefty fees to banks tional payday lenders, custom- and even have their checking ers tend to retain more control 0 40 8 0 accounts closed if their bal- over payments as many take ances are too low to cover au- out loans and make cash pay- tomated payments, a report ments at store counters. In –10 20 4 –20 published Wednesday shows. contrast, online lenders often Monthly The report by the Consumer use an automated network to –20 0 0 S&P 500 –40 Financial Protection Bureau of- deposit loans to accounts and fers clues to details of a collect payments. 2015 ’16 2014 ’15 ’16 March April 2015 ’16 sweeping payday-loan regula- Online lenders often make *Shanghai-Hong Kong Stock Connect limit is 13 billion yuan a day. †Includes Chinese companies listed outside the mainland 1 billion yuan = $154.8 million tion the agency plans to pro- repeated attempts to collect Sources: Thomson Reuters (net flow, indexes); Wind Info (QFII) THE WALL STREET JOURNAL. pose this spring. Specifically, payments, with each one po- CFPB officials indicated the tentially resulting in more fees. rule would place limits on Some use a tactic of splitting a when and how lenders can single payment into several Global Investors Step Back to China gain access to the money in portions and processing them consumers’ bank accounts. the same day. For example, BY CHAO DENG and are up 12% since their 2016 vestment officer of Asia equi- the lack of stimulus from Bei- “The true costs of these they could request three $100 AND DOMINIQUE FONG closing low on Jan. 28. ties at Mirae Asset Global In- jing sent investors into a panic. loans, taken in the aggregate, payments, instead of a single Some investors also have vestments. “Now, clearly But that type of volatility has must be kept in mind as we $300 request, in the hope of Global investors appear to been buying Chinese stocks there’s an interest.” become the exception of late. assess the effects on consum- collecting at least some of the be regaining their appetite for trading in Hong Kong: The To be sure, the Shanghai That global investors are ers,” CFPB Director Richard money. Chinese stocks, buying shares Hang Seng China Enterprises Composite Index, China’s main coming back to China can be Cordray told reporters on a The report analyzed the ac- in Shanghai through a stock- Index of major mainland China benchmark, is still down 16% seen in the surge in buying on conference call Tuesday. “Get- tivities of more than 330 lend- trading link at the highest companies has gained 22% since the start of the year. the Shanghai-Hong Kong Stock ting booted from the banking ers and is based on data from level since China’s market from mid-February, when it hit On Wednesday, the market Connect, which allows them to system can have far-reaching an 18-month period in 2011-12, meltdown last summer. a seven-year low. fell 2.3%, its worst one-day invest in a broader range of repercussions for consumers, collected from several banks After a tumultuous start to “Two months back, nobody slide since Feb. 29, as worries Chinese companies than those leading to a downward spiral through the agency’s supervi- the year, Chinese shares began wanted to talk about China,” about tighter liquidity in listed in Hong Kong. Investors that costs them even more sory process. rising at the end of January, said Rahul Chadha, co-chief in- China’s financial system and Please see CHINA page B8 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 B6 | Thursday, April 21, 2016 THE WALL STREET JOURNAL. MARKETS DIGEST

Nikkei 225 Index STOXX 600 Index S&P 500 Index Data as of 4 p.m. New York time Last Year ago 16906.54 s32.10, or 0.19% Year-to-date t 11.18% 350.75 s1.51, or 0.43% Year-to-date t 4.12% 2102.40 s1.60, or 0.08% Trailing P/E ratio * 24.15 20.87 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 412.42 303.58 High, low, open and close for each P/E estimate * 18.50 17.61 38915.87 12/29/89 414.06 4/15/15 2.19 1.99 trading day of the past three months. All-time high trading day of the past three months. All-time high trading day of the past three months. Dividend yield All-time high: 2130.82, 05/21/15

* P/E data based on as-reported earnings from Birinyi Associates Inc. 65-day moving average Session high 18800 360 2100 DOWN UP

Session open t Close 65-day moving average 18000 350 2050 Close Open t 65-day moving average

Session low 17200 340 2000

16400 330 1950

15600 320 1900

14800 310 1850

Bars measure the point change from session's open 14000 300 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 2406.09 0.07 2033.03 2643.78 3.0 World The Global Dow 1.76 • Country/ Spread Over Treasurys, in basis points Yield MSCI EAFE 1708.12 –4.07 –0.24 1471.88 • 1956.39 –0.5 Coupon Maturity, in years Yield Latest Previous Month Ago Year ago Previous Month ago Year ago MSCI EM USD 850.44 –2.29 –0.27 691.21 • 1067.74 7.1 3.250 Australia 2 1.989 118.3 124.2 110.9 132.9 2.003 1.948 1.853 4.250 10 2.538 68.5 68.5 51.5 2.566 2.563 2.406 Americas DJ Americas 505.89 0.53 0.10 433.38 • 525.25 3.8 77.9 3.500 2 -0.475 -128.1 -125.5 -70.5 -0.465 -0.415 -0.180 Brazil Sao Paulo Bovespa 53547.78 –162.26 –0.30 37046.07 • 58574.79 23.5 Belgium -122.7 0.800 10 0.383 -147.0 -141.3 -161.3 0.417 0.465 0.278 Canada S&P/TSX Comp 13907.41 40.13 0.29 11531.22 • 15456.35 6.9 -136.9 4.250 2 -0.452 -125.8 -122.1 -124.7 -69.4 -0.460 -0.408 -0.169 Mexico IPC All-Share 45653.80 –126.38 –0.28 39256.58 • 46307.61 6.2 France 0.500 10 0.494 -135.9 -126.7 -131.5 -153.0 0.520 0.563 0.361 Chile Santiago IPSA 3164.58 –3.67 –0.12 2730.24 • 3361.36 7.5 0.500 Germany 2 -0.499 -130.5 -125.0 -131.2 -77.9 -0.489 -0.473 -0.255 U.S. DJIA 18096.27 42.67 0.24 15370.33 • 18351.36 3.9 0.500 10 0.156 -169.7 -161.5 -166.4 -181.2 0.172 0.214 0.079 Nasdaq Composite 4948.13 7.80 0.16 4209.76 • 5231.94 –1.2 4.500 Italy 2 0.006 -80.0 -75.9 -83.4 -41.2 0.002 0.005 0.113 S&P 500 2102.40 1.60 0.08 1810.10 • 2134.72 2.9 2.000 10 1.395 -45.8 -37.5 -60.2 -43.5 1.411 1.276 1.456 CBOE Volatility 13.24 … unch. 10.88 • 53.29 –27.3 0.100 Japan 2 -0.264 -107.0 -102.3 -105.1 -51.9 -0.261 -0.212 0.006 EMEA Stoxx Europe 600 350.75 1.51 0.43 303.58 • 412.42 –4.1 0.100 10 -0.130 -198.3 -191.6 -196.9 -158.0 -0.129 -0.092 0.311 Stoxx Europe 50 2945.05 20.27 0.69 2556.96 • 3584.02 –5.0 0.500 Netherlands 2 -0.513 -131.9 -128.4 -132.8 -72.4 -0.522 -0.488 -0.200 Austria ATX 2342.26 4.02 0.17 1929.73 • 2695.57 –2.3 0.250 10 0.241 -161.2 -152.2 -156.2 -173.2 0.264 0.316 0.159 Belgium Bel-20 3500.09 2.46 0.07 3117.61 • 3867.21 –5.4 4.350 Portugal 2 0.272 -53.4 -50.6 -55.5 -48.5 0.255 0.284 0.039 France CAC 40 4591.92 25.44 0.56 3892.46 • 5283.71 –1.0 2.875 10 2.965 111.2 116.8 86.3 10.6 2.954 2.741 1.997 Germany DAX 10421.29 71.70 0.69 8699.29 • 12050.71 –3.0 4.500 Spain 2 -0.044 -85.0 -79.6 -80.0 -43.8 -0.035 0.040 0.086 Greece ATG 582.51 3.66 0.63 420.82 • 857.92 –7.7 1.950 10 1.533 -32.1 -24.7 -43.7 -42.9 1.539 1.440 1.462 Hungary BUX 27192.03 –79.75 –0.29 20452.90 • 27380.85 13.7 4.250 Sweden 2 -0.420 -122.6 -117.1 -146.8 -86.1 -0.409 -0.629 -0.337 Israel Tel Aviv 1498.60 –4.06 –0.27 1383.34 • 1728.89 –2.0 1.000 10 0.770 -108.3 -100.0 -132.8 -163.3 0.786 0.549 0.257 Italy FTSE MIB 18658.36 210.38 1.14 15773.00 • 24157.39 –12.9 1.250 U.K. 2 0.476 -33.0 -28.4 -36.9 6.5 0.477 0.471 0.589 Netherlands AEX 456.20 –0.26 –0.06 378.53 • 510.55 3.3 2.000 10 1.483 -37.0 -27.8 -42.6 -29.9 1.509 1.452 1.592 Poland WIG 48632.80 36.46 0.08 41747.01 • 57460.44 4.7 0.875 U.S. 2 0.806 ...... 0.762 0.839 0.524 Russia RTS Index 943.16 16.52 1.78 607.14 • 1092.52 24.6 1.625 10 1.853 ...... 1.786 1.878 1.891 Spain IBEX 35 9147.20 175.90 1.96 7746.30 • 11684.60 –4.2 497.89 0.43 432.78 564.90 –1.4 Sweden SX All Share 2.14 • Commodities Prices of futures contracts with the most open interest 3:30 p.m. New York time 8186.97 34.21 0.42 7425.05 9537.90 –7.2 Switzerland Swiss Market • 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 53789.75 408.81 0.77 45975.78 • 55355.12 6.1 Derivatives Berhad; TCE: Tokyo Commodity Exchange; COMEX: Commodity Exchange; LME: London Metal Exchange; Turkey BIST 100 85550.21 –700.76 –0.81 68230.47 • 88651.88 19.3 NYMEX: New York Mercantile Exchange; ICE-EU: ICE Futures Europe. *Data as of 4/19/2016 One-Day Change Year Year U.K. FTSE 100 6410.26 4.91 0.08 5499.51 • 7122.74 2.7 Commodity Exchange Last price Net Percentage high low 400.50 11.00 2.82% 400.75 351.25 Asia-Pacific DJ Asia-Pacific TSM 1393.24 –4.14 –0.30 1188.42 • 1621.10 0.3 Corn (cents/bu.) CBOT 1017.75 23.00 2.31 1,021.00 862.00 Australia S&P/ASX 200 5216.00 27.20 0.52 4765.30 • 5982.70 –1.5 Soybeans (cents/bu.) CBOT Wheat (cents/bu.) CBOT 512.00 17.75 3.59 512.75 449.50 China Shanghai Composite 2972.58 –70.24 –2.31 2655.66 • 5166.35 –16.0 Live cattle (cents/lb.) CME 117.050 -1.525 -1.29% 131.350 116.925 Hong Kong Hang Seng 21236.31 –199.90 –0.93 18319.58 • 28442.75 –3.1 Cocoa ($/ton) ICE-US 3,079 unch. unch. 3,211 2,746 India S&P BSE Sensex 25844.18 27.82 0.11 22951.83 • 28504.93 –1.0 Coffee (cents/lb.) ICE-US 128.90 1.00 0.78 138.20 115.35 Japan Nikkei Stock Avg 16906.54 32.10 0.19 14952.61 • 20868.03 –11.2 Sugar (cents/lb.) ICE-US 15.76 0.34 2.20 16.63 12.68 Singapore Straits Times 2949.95 –1.86 –0.06 2532.70 • 3515.85 2.3 Cotton (cents/lb.) ICE-US 64.06 0.99 1.57 64.92 54.33 2005.83 –5.53 –0.27 1829.81 2173.41 2.3 South Korea Kospi • Robusta coffee ($/ton) ICE-EU 1574.00 9.00 0.58 1,597.00 1,372.00 Taiwan Weighted 8514.48 –119.24 –1.38 7410.34 • 9973.12 2.1 Copper ($/lb.) COMEX 2.2420 0.0105 0.47 2.3290 1.9580 Source: SIX Financial Information;WSJ Market Data Group Gold ($/troy oz.) COMEX 1246.60 -7.70 -0.61 1,287.80 1,063.00 Silver ($/troy oz.) COMEX 17.025 0.053 0.31 17.255 13.760 Currencies London close on April 20 Aluminum ($/mt)* LME 1,566.00 10.50 0.68 1,588.50 1,451.50 17,035.00 -165.00 -0.96 17,500.00 13,225.00 Yen, euro vs. dollar; dollar vs. major U.S. trading partners US$ vs, Tin ($/mt)* LME Wed YTD chg Copper ($/mt)* LME 4,803.00 25.00 0.52 5,070.50 4,320.50 10% Country/currency in US$ per US$ (%) Lead ($/mt)* LME 1,728.00 10.00 0.58 1,888.00 1,598.00

8 s Europe Zinc ($/mt)* LME 1,913.00 13.00 0.68 1,913.00 1,467.00 6 Euro WSJ Dollar index

4 s Bulgaria lev 0.5794 1.7260 –4.1 Nickel ($/mt)* LME 9,090.00 95.00 1.06 9,400.00 7,750.00 0.1511 6.619 –5.6 2 Croatia kuna Rubber (Y.01/ton) TCE 196.70 2.90 1.50 197.80 175.10 1.1335 0.8823 –4.2 0 Euro zone euro 0.0419 23.842 –4.2 Palm oil (MYR/mt) MDEX 2709.00 21.00 0.78 2,780.00 2,405.00 –2 Czech Rep. koruna-b Denmark krone 0.1523 6.5655 –4.5 Crude oil ($/bbl.) NYMEX 43.75 1.28 3.01 44.26 30.79 –4 sYen Hungary forint 0.003663 273.01 –6.0 1.3315 0.0604 4.75 1.3403 0.9161 –6 NY Harbor ULSD ($/gal.) NYMEX Iceland krona 0.008097 123.51 –5.1 –8 RBOB gasoline ($/gal.) NYMEX 1.5189 0.0208 1.39 1.5723 1.1528 Norway krone 0.1232 8.1181 –8.2 Natural gas ($/mmBtu) NYMEX 2.180 -0.008 -0.37 2.5930 1.8440 2015 2016 Poland zloty 0.2646 3.7799 –3.7 Russia ruble-d 0.01522 65.688 –8.6 Brent crude ($/bbl.) ICE-EU 45.23 1.38 3.15 45.71 30.02 US$ vs, US$ vs, 0.1237 8.0831 –4.3 ICE-EU 397.50 16.75 4.40 400.25 272.00 YTD chg YTD chg Sweden krona Gas oil ($/ton) Wed Wed 1.0343 0.9668 –3.5 Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%) Switzerland franc Turkey lira 0.3556 2.8125 –3.6 Sources: SIX Financial Information; WSJ Market Data Group Hong Kong dollar 0.1289 7.7558 0.1 Americas Ukraine hryvnia 0.0394 25.3670 5.7 India rupee 0.0151 66.1145 –0.1 Argentina peso-a 0.0702 14.2475 10.1 U.K. pound 1.4381 0.6954 2.5 London close on Apr 20 Indonesia rupiah 0.0000760 13163 –4.9 Cross rates Brazil real 0.2817 3.5502 –10.4 Japan yen 0.009136 109.46 –9.0 Middle East/Africa Canada dollar 0.7919 1.2628 –8.8 USD GBP CHF JPY HKD EUR CDN AUD Kazakhstan tenge 0.002959 337.98 –0.2 Bahrain dinar 2.6527 0.3770 –0.03 Chile peso 0.001515 660.10 –6.8 1.2794 1.8404 1.3233 0.0117 0.1650 1.4503 1.0136 ... Macau pataca 0.1252 7.9895 –0.2 Egypt pound-a 0.1127 8.8769 13.4 Australia Colombia peso 0.0003443 2904.28 –8.5 Malaysia ringgit-c 0.2588 3.8640 –10.2 Israel shekel 0.2659 3.7612 –3.4 Canada 1.2628 1.8158 1.3058 0.0115 0.1628 1.4310 ... 0.9866 Ecuador US dollar-f 11unch New Zealand dollar 0.6995 1.4296 –2.3 Kuwait dinar 3.3161 0.3016 –0.6 Euro 0.8823 1.2690 0.9125 0.0081 0.1138 ... 0.6987 0.6894 Mexico peso-a 0.0579 17.2739 0.4 Pakistan rupee 0.0096 104.650 –0.2 Oman sul rial 2.5980 0.3849 –0.01 Hong Kong 7.7558 11.1535 8.0221 0.0709 ... 8.7910 6.1424 6.0603 Peru sol 0.3082 3.2450 –5.0 Philippines peso 0.0216 46.278 –1.2 Qatar rial 0.2746 3.641 –0.04 109.4580 157.4100 113.2000 ... 14.1140 124.0700 86.6820 85.5400 Uruguay peso-e 0.0314 31.870 6.6 Japan Singapore dollar 0.7448 1.3426 –5.3 Saudi Arabia riyal 0.2667 3.7502 –0.1 Venezuela bolivar 0.100137 9.99 58.4 Switzerland 0.9668 1.3904 ... 0.0088 0.1247 1.0959 0.7658 0.7557 South Korea won 0.0008839 1131.35 –3.8 South Africa rand 0.0704 14.2096 –8.2 U.K. 0.6954 ... 0.7192 0.0064 0.0897 0.7883 0.5507 0.5434 Asia-Pacific Sri Lanka rupee 0.0068339 146.33 1.5 Close Net Chg % Chg YTD % Chg U.S. ... 1.4381 1.0343 0.0091 0.1289 1.1335 0.7919 0.7816 Australia dollar 0.7816 1.2794 –6.8 Taiwan dollar 0.03106 32.195 –2.2 WSJ Dollar Index 85.78 0.10 0.12 –4.87 0.02870 34.840 –3.3 China yuan 0.1546 6.4672 –0.4 Thailand baht 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 0.44125% 0.18175% ¥ TakedaPharm 4502 5369.00 0.90 -11.48 £ RioTinto RIO 2423.50 3.88 22.43 Last: 132.47 t 0.47, or 0.35% YTD t 2.8% Three month 0.63510 0.27750 Asia Titans HK$ TencentHoldings 0700 161.90 -2.29 6.02 CHF RocheHldgctf ROG 253.60 -0.31 -8.25 Six month 0.90415 0.40490 HK$ AIAGroup 1299 44.65 -1.00 -4.18 ¥ TokioMarineHldg 8766 3692.00 0.19 -21.65 £ RoyDtchShell A RDSA 1813.00 0.69 18.81 50–day 140 One year 1.22480 0.69915 1518.00 0.36 -12.33 5643.00 -0.65 -24.64 71.09 0.08 -3.12 moving average ¥ AstellasPharma 4503 ¥ ToyotaMtr 7203 €SAP SAP t 130 23.90 -0.67 -14.43 41.06 0.59 -1.32 77.98 0.35 -0.79 Euro Libor AU$ AustNZBk ANZ AU$ Wesfarmers WES € Sanofi SAN 120 One month -0.34886% -0.04571% AU$ BHP BHP 20.34 3.41 13.89 AU$ WestpacBanking WBC 30.76 0.69 -8.34 € SchneiderElectric SU 56.47 1.20 7.44 Three month -0.26729 -0.00500 HK$ BankofChina 3988 3.24 -0.61 -6.36 AU$ Woolworths WOW 22.00 -0.63 -10.20 € Siemens SIE 96.22 0.87 7.05 High 110 Six month -0.15586 0.06071 97.15 -0.26 -6.94 9.94 1.91 -2.84 HK$ CKHutchison 0001 € Telefonica TEF Close 100 One year -0.02886 0.18000 HK$ CNOOC 0883 9.65 -1.43 19.58 Stoxx 50 € Total FP 43.34 1.07 6.09 Low 90 Euribor ¥ Canon 7751 3333.00 0.12 -9.31 CHF ABB ABBN 20.28 3.84 12.92 CHF UBSGroup UBSG 16.20 2.08 -17.01 One month -0.34200% -0.03400% ¥ CentralJapanRwy 9022 20285 0.55 -6.09 €AXA CS 22.71 1.41 -9.97 € Unilever UNA 41.41 -0.23 3.24 22 29 5 12 19 26 4 11 18 25 1 8 15 Three month -0.24900 -0.00200 HK$ ChinaConstructnBk 0939 5.04 -0.79 -5.08 € AirLiquide AI 106.15 1.10 2.41 £ Unilever ULVR 3330.00 -0.03 13.79 Feb. Mar. Apr. Six month -0.14100 0.06800 HK$ ChinaLifeInsurance 2628 19.24 -1.84 -23.35 € Allianz ALV 155.30 2.61 -5.04 £ VodafoneGroup VOD 232.60 0.11 5.25 One year -0.01100 0.17500 HK$ ChinaMobile 0941 88.70 -0.95 1.37 € Anheuser Busch ABI 116.10 0.56 1.49 CHF ZurichInsurance ZURN 217.60 0.65 -15.79 74.55 -0.20 -12.84 Yen Libor AU$ CmwlthBkAust CBA £ AstraZeneca AZN 4141.00 -0.46 -10.30 Stoxx 50 ¥ EastJapanRailway 9020 10250 1.08 -10.48 € BASF BAS 71.10 1.59 0.54 DJIA One month 0.22786% 0.23786% Last: 2945.05 s 20.27, or 0.69% YTD t 5.0% Three month 0.54250 0.38500 ¥ Fanuc 6954 18505 0.79 -12.22 € BNP Paribas BNP 46.81 2.60 -10.37 $ AmericanExpress AXP 65.03 2.30 -6.50 527.20 0.65 -23.76 107.13 0.21 1.78 Six month 0.87815 0.54143 ¥ Hitachi 6501 £ BT Group BT.A 438.25 -2.85 -7.09 $ Apple AAPL 3200 One year 1.27279 0.84214 TW$ Hon Hai Precisn 2317 79.20 -2.82 -1.98 € BancoBilVizAr BBVA 6.36 5.77 -4.62 $ Boeing BA 130.54 -1.61 -9.72 3050.00 -0.91 -21.99 3.60 -5.24 CAT 79.74 -0.81 17.33 3050 Offer ¥ HondaMotor 7267 € BancoSantander SAN 4.32 $ Caterpillar KRW HyundaiMtr 005380 151500 -0.98 1.68 £ Barclays BARC 171.15 2.00 -21.81 $ Chevron CVX 101.74 1.23 13.09 Eurodollars 2900 HK$ Ind&Comml 1398 4.34 -0.91 -7.26 109.70 0.05 -5.27 $ CiscoSystems CSCO 28.44 0.39 4.73 One month 0.5000% 0.4000% € Bayer BAYN 2750 ¥ JapanTobacco 2914 4709.00 -1.11 5.32 363.65 0.19 2.73 $ CocaCola KO 44.36 -4.81 3.26 Three month 0.6500 0.5500 £BP BP. ¥ KDDI 9433 3197.00 -0.53 1.36 £ BritishAmTob BATS 4264.50 -0.39 13.09 $ Disney DIS 103.27 0.61 -1.72 2600 Six month 0.9000 0.8000 -1.43 -2.79 ¥ Mitsubishi 8058 1935.50 -0.54 -4.56 CHF FinRichemont CFR 66.65 2.07 -7.56 $ DuPont DD 64.74 One year 1.2500 1.1500 0.67 11.34 2450 ¥ MitsuUFJFin 8306 538.80 -1.12 -28.83 CHF CreditSuisse CSGN 15.23 3.25 -29.78 $ ExxonMobil XOM 86.79 Latest 52 wks ago 0.03 0.03 22 29 5 12 19 26 4 11 18 24 1 8 15 ¥ Mitsui 8031 1338.50 0.41 -7.40 € Daimler DAI 66.13 0.75 -14.76 $ GenElec GE 31.16 2.80 -7.23 Feb. Mar. Apr. Prime rates ¥ Mizuho Fin 8411 171.10 -0.06 -29.73 € Deutsche Bank DBK 16.44 5.12 -27.01 $ GoldmanSachs GS 167.20 135.19 -0.18 2.22 U.S. 3.50% 3.25% ¥ NTTDoCoMo 9437 2705.00 -0.51 8.90 € DeutscheTelekom DTE 16.09 -0.25 -3.62 $ HomeDepot HD 32.00 1.27 -7.11 Canada 2.70 2.85 AU$ NatAustBnk NAB 27.16 -0.15 -10.07 £ Diageo DGE 1948.00 0.08 4.93 $ Intel INTC 146.12 1.47 6.18 Japan 1.475 1.475 ¥ NipponStl&SmtmoMtl 5401 2426.50 0.89 0.43 € ENI ENI 13.89 1.61 0.65 $ IBM IBM 64.22 1.42 -2.74 Dow Jones Industrial Average P/E: 19 Hong Kong 5.00 5.00 ¥ NipponTeleg 9432 4960.00 -0.36 2.56 £ GlaxoSmithKline GSK 1495.50 -0.37 8.92 $ JPMorganChase JPM 113.54 0.76 10.53 Last: 18096.27 s 42.67, or 0.24% s 3.9% Policy rates ¥ NissanMotor 7201 1016.00 -0.97 -20.59 £ HSBC Hldgs HSBA 465.40 2.50 -13.20 $ JohnsJohns JNJ YTD 128.55 -0.24 8.81 ECB 0.00% 0.05% ¥ NomuraHldgs 8604 508.00 -0.02 -25.20 € INGGroep INGA 11.18 0.04 -10.20 $ McDonalds MCD 56.58 -0.49 7.12 18000 Britain 0.50 0.50 ¥ Panasonic 6752 1004.50 0.86 -19.02 £ ImperialBrands IMB 3717.00 -1.41 3.64 $ Merck MRK MSFT 55.59 -1.42 0.20 Switzerland 0.50 0.50 HK$ PetroChina 0857 5.35 -1.47 5.11 € IntesaSanpaolo ISP 2.46 1.82 -20.21 $ Microsoft 17400 $ NikeClB NKE 59.62 0.10 -4.61 Australia 2.00 2.25 HK$ PingAnInsofChina 2318 37.40 -1.32 -12.82 € LVMHMoetHennessy MC 154.50 0.68 6.63 16800 $ Pfizer PFE 33.23 1.03 2.94 U.S. discount 1.00 0.75 $ RelianceIndsGDR RIGD 31.30 -2.34 2.29 £ LloydsBankingGroup LLOY 67.76 -0.13 -7.27 $ Procter&Gamble PG 81.55 -2.08 2.69 16200 Fed-funds target 0.25 0.00 AU$ RioTinto RIO 51.30 4.08 14.74 € LOreal OR 168.10 -0.24 8.24 $3M MMM 168.93 -0.42 12.14 Call money 2.25 2.00 KRW SamsungElectronics 005930 1299000 0.85 3.10 £ NationalGrid NG. 1001.00 -0.60 6.77 15600 $ TravelersCos TRV 115.80 -0.40 2.60 Overnight repurchase rates ¥ Seven&I Hldgs 3382 4684.00 -1.14 -15.60 CHF Nestle NESN 73.85 -0.14 -0.94 $ UnitedTech UTX 105.54 0.51 9.86 15000 U.S. 0.37% 0.12% ¥ SoftBankGroup 9984 6002.00 0.07 -2.23 CHF Novartis NOVN 74.05 -0.13 -14.69 $ UnitedHealthGroup UNH 134.00 2.68 13.91 22 29 5 12 19 26 4 11 18 24 1 8 15 Euro zone n.a. n.a. ¥ Sumitomo Mitsui 8316 3598.00 0.28 -21.88 DKK NovoNordiskB NOVO-B 372.40 -1.43 -6.88 $ VISAClA V 81.24 0.61 4.76 Feb. Mar. Apr. HK$ SunHngKaiPrp 0016 98.20 0.20 4.75 £ Prudential PRU 1436.50 0.77 -6.17 $ Verizon VZ 51.75 -0.63 11.96 Note: Price-to-earnings ratios are for trailing 12 months Sources: WSJ Market Data Group, SIX TW$ TaiwanSemiMfg 2330 154.00 -2.22 7.69 £ ReckittBenckiser RB. 6925.00 -0.70 10.25 Financial Information, Tullett $ WalMart WMT 69.22 -0.79 12.92 Sources: WSJ Market Data Group; Birinyi Associates 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 THE WALL STREET JOURNAL. Thursday, April 21, 2016 | B7 MONEY & INVESTING

credit from both companies ECB and households. Recent economic data has Oil Boosts Energy Shares been mixed, however. Retail ContinuedfrompageB5 sales rose for a fourth Sharp decrease in U.S. have participated in the rally crude oil rose 3.8% to $42.63 a last month, the meeting will be lus on March 10, which in- straight month in February than just a few big gainers, and barrel. closely watched for any com- volved sweeping rate cuts, an and unemployment is at a stockpiles lifts crude shares of both large and small “There’s a sense of confi- ments on the exchange rate increase in its bond purchases four-year low of 10.3%. But prices; Shanghai companies have advanced. dence that oil has established a and details of the bank’s corpo- to €80 billion a month, and economic growth probably “The market is in a stronger new trading range,” said Giles rate-sector purchase program. cheap loans for banks. But the softened in the first quarter, stocks decline 2.3% position today as we approach Fitzpatrick, partner at Lon- The Stoxx Europe 600 rose positive market reaction re- according to a closely all-time highs than it was a don’s Hannam & Partners. 0.4% to 350.74. versed when Mr. Draghi said watched business survey, and BY SAUMYA VAISHAMPAYAN year ago,” said Hank Smith, Corporate news continued The euro fell 0.5% against at a news conference that he inflation was zero in March, AND RIVA GOLD chief investment officer at to spark stock moves. United- the dollar to $1.1299. didn’t expect to cut interest far below the ECB’s near-2% Haverford Trust, which man- Health Group raised its guid- The moves also followed a rates again. The ECB’s deposit target. U.S. stocks rose Wednesday ages $6.5 billion in assets. ance for the year and said rocky session in Shanghai, rate, paid on funds parked Top ECB officials have as a rally in oil prices ignited Expectations for stock Tuesday that it would pull out which left some investors ner- with the central bank, stands stressed repeatedly that they gains in energy shares. swings have diminished as U.S. of nearly all of the Affordable vous that a recent rally in Chi- at minus-0.4%. are ready to take further ac- Stock markets around the stocks have clambered back Care Act’s exchanges. Its shares nese stocks may have run its Top ECB officials have tion to ensure ultralow infla- world have rallied since mid- near records. The CBOE Volatil- rose 2.8% by late afternoon. course. since refined that message, tion doesn’t become en- February, as global growth ity Index, or VIX, hit an intra- Intel is planning to slash The Shanghai Composite In- indicating that fresh rate cuts trenched. fears eased, day low of 12.50 Wednesday, 11% of its workforce, the chip dex ended down 2.3% after fall- and other tools remain on the Such statements, and a de- WEDNESDAY’S oil prices which marked a fresh low for maker said late Tuesday as it ing as much as 4.5%. Traders table. But investors have re- bate over helicopter money, MARKETS rebounded the year. By late afternoon, the announced first-quarter re- cited a range of possible trig- sponded cautiously. The Euro- appear to have stoked con- and the U.S. VIXwasdown0.5%at13.18. sults. Its shares added 1.4%. gers for the move, including stoxx 50 index is up about 3% cerns in Berlin over the ECB’s Federal Re- On Wednesday, the Dow Coca-Cola, meanwhile, fell short-term liquidity pressures since before the last policy easy-money policies. German serve signaled a slow path of Jones Industrial Average 4.8% after the company said and lackluster first-quarter meeting, while the euro has Finance Minister Wolfgang interest-rate increases. Shares gained 42.67 points, or 0.2%, to revenue and profit declined in earnings reports. strengthened against the dol- Schäuble this month argued of commodity-sensitive firms 18096.27. The S&P 500 rose its latest quarter. Also, officials fixed the yuan lar, to around $1.14 from that the ECB was partly to have been some of the biggest 1.60, or 0.1%, to 2102.40, and Investors were also looking daily benchmark rate $1.10, an unpleasant surprise blame for the rise of a new winners in this period, helping the Nasdaq Composite rose ahead to the European Central higher against the U.S. dol- for the ECB. anti-immigration party, the push major U.S. indexes back 7.80, or 0.2%, to 4948.13. Bank’s April meeting on Thurs- lar for a third consecutive day, “The confidence boost that Alternative for Germany. near all-time highs. Energy stocks turned higher day. While few expect policy putting it at its highest level in the central bank had hoped Some investors say they are along with oil prices after an makers to announce new four months. for has not materialized,” said The rate paid on encouraged by the broad gains unexpected and sharp decrease moves after the central bank’s Elsewhere, stocks in Japan Michael Schubert, an econo- in U.S. shares. More stocks in U.S. distillate stockpiles. U.S. comprehensive easing package ended a touch higher. mist with Commerzbank in funds parked with Frankfurt. the central bank is On interest rates, the ECB faces a dilemma: Signaling minus-0.4%. Saudis Back in Global Credit Market that rates could fall further would likely weaken the euro exchange rate, helping the Mr. Draghi will likely be BY NICOLAS PARASIE nomic-overhaul plan in coming bloc’s exporters. But ECB pol- asked about his relations with weeks. icy makers also appear eager Berlin, and to clarify his posi- DUBAI—Saudi Arabia is set To finance its budget deficit, to avoid a currency war, in tion on helicopter money, to secure a $10 billion loan Saudi Arabia has issued domes- which central banks try to which he described at his last from international banks as tic bonds and has been drawing outdo each other with ever- news conference as “a very the kingdom seeks to address down its foreign reserves. deeper rate cuts, according to interesting concept.” a budget shortfall caused by Those reserves have fallen un- the minutes of their March “It’s going to be very frus- the drop in oil prices, accord- der $600 billion, down almost meeting. Central banks from trating [for Mr. Draghi] if, ing to five bankers close to the $150 billion from their peak in Japan to Sweden have also just a few weeks after a sec- transaction. the middle of 2014. “They’ve cut rates below zero. ond package of policy mea- Saudi Arabia increased the been tapping their external re- Mr. Draghi is likely to tread sures was announced, there’s loan size from an initial target serves significantly and would a cautious path on Thursday, a clamor to discuss a helicop- range of between $6 billion like to slow that down,” said economists say, seeking to re- ter drop,” said Ken Wattret, and $8 billion after receiving Giyas Gokkent, a Dubai-based assure investors that the cen- an economist with BNP strong demand from a wide economist at the Institute of In- tral bank hasn’t used up all its Paribas in London.

range of global banks, said the WASEEM OBAIDI/BLOOMBERG NEWS ternational Finance. ammunition without under- Mr. Draghi may also reveal people familiar with the mat- The financial district in Riyadh, Saudi Arabia. The country has Bankers said the list of par- mining Europe’s banks, which fresh details of the ECB’s new ter. The terms of the loan have announced overhauls to soften the fiscal pain from low oil prices. ticipating banks reflects the ap- complain that negative inter- corporate-bond-purchase pro- been agreed on and require petite of Asian banks to expand est rates impose costs that gram, which is due to start in only the documentation to be sian Gulf are under pressure to billion this year, nearly double outside their domestic market. can’t easily be passed on to June. Investors will look for completed, the bankers said. find new sources of capital af- the amount in 2014, when oil Japanese banks, in particular, customers. more details on which bonds Among the participating ter their principal source of in- prices topped $100 a barrel. are looking for fresh opportuni- Investors are pricing in a the central bank might pur- lenders are U.S. banks J.P. Mor- come has dwindled along with Saudi Arabia’s loan is ex- ties abroad as they face nega- further 0.1-percentage-point chase, whether it will target a gan Chase & Co., Goldman energy prices, which have pected to pave the way for the tive interest rates at home. cut to the ECB’s deposit rate specific monthly volume, and Sachs Group Inc. and Morgan dropped steeply since 2014. country to obtain additional One of the bankers said the by the third quarter, to mi- how risks will be shared Stanley. There is also an Asian Saudi Arabia, whose credit cash by tapping the interna- loan was priced at around 1 nus-0.5%, said Mr. Bosom- among eurozone central contingent, including Bank of rating was recently cut by Fitch tional bond markets, the bank- percentage point above the worth, citing derivative mar- banks. Tokyo-Mitsubishi UFJ, Indus- and Standard & Poor’s, isn’t the ers said. A timeline for when it London interbank offered rate. kets. The ECB’s broader bond- trial & Commercial Bank of only country in the region rais- might enter the bond markets Another banker said the deal The stresses in Europe’s purchase program is due to China Ltd. and Mizuho Bank. ing funds. Qatar and Oman hasn’t been determined. wasn’t necessarily hugely prof- banking sector appear to have end in March 2017. Mr. Draghi Saudi Arabia’s Ministry of have already borrowed in re- In its attempt to soften the itable for some of the banks in- diminished in recent weeks. will likely be pressed on Finance didn’t respond to recent months, while Abu Dhabi fiscal pain from low oil prices, volved but could open doors to Banking stocks are up almost whether the program could be quests for comment. is considering an international Saudi Arabia has announced future work in the kingdom. one-fifth from their February extended, and how to avoid The five-year loan marks the bond, according to the bankers. changes that include raising Verus Partners, a London- lows. The ECB’s most recent bottlenecks in certain bond country’s return to the global Standard & Poor’s earlier utility prices, cutting subsidies based boutique, has been advis- survey of bank lending, pub- markets, such as German gov- credit markets after a 25-year this year said it expects Mid- and privatizing state assets. ing the Saudi government on lished on Tuesday, shows an ernment bonds. For now, in- absence. It also comes as the east and North African sover- The country is expected to an- the loan accord, the bankers fa- improved supply of loans to vestors will let Mr. Draghi re- major oil exporters of the Per- eigns to borrow a total of $134 nounce a more-detailed eco- miliar with the matter said. firms, and higher demand for main vague, economists said.

respected finance minister after BROWN markets sold off. In Malaysia, ETFS Wide Web Mr. Najib appointed a political Investors have poured money into exchange-traded funds since they took off in the early 1990s. ally who served on the advisory Three of the ﬁve most-traded U.S.-listed securities last year were exchange-traded products. ContinuedfrompageB5 board of a scandal-plagued gov- ContinuedfrompageB5 pared with a 2.8% rise in the ernment investment fund to re- heads State Street Global Ad- Assets in U.S. exchange-traded funds Average daily trading in shares, 2015 $2.1 trillion S&P 500. That has forced inves- place the country’s widely re- visors’ line of SPDR ETFs. $2.0 trillion tors to take on more risk to stay spected central-bank head who Born near Chicago and SPDR S&P 500 ETF Trust in the game, which means look- is retiring. raised in Manhattan, Ms. Mo- 123.6 million ing for turnaround stories, even Then there is undoing the riarty often wears a gold 1.5 Bank of America if the turnarounds are largely mess left behind by the previ- brooch of a long-legged spider. 84.3 uncertain. ous government. For many She has won regulators’ as- 1.0 6.7B The fun part is picking the emerging markets, that means sent for several new products iShares MSCI Emerging Markets ETF next to fall. Topping the list are somehow paying off big piles of over the past two decades, 2.4B 56.9 1.1B South Africa’s Jacob Zuma and debt that were typically squan- from basic stock-market-track- 0.5 424M iPath S&P 500 VIX Short-Term Futures ETN Malaysia’s Najib Razak. Both dered on bad policies or used ing funds to those that seek to 56.5 leaders face corruption allega- for political favors. Brazil’s debt replicate the performances of $464M 0 tions and are under pressure to tripled to $1 trillion in the past bonds and gold, and those General Electric resign, though both are political nine years, and all three major that use derivatives to amplify 1993 ’95 2000 ’05 ’10 ’15 52.4 survivors with strong party credit-rating companies re- performance. Source: Investment Company Institute (assets); FactSet (shares traded) THE WALL STREET JOURNAL. backing. duced the country’s rating to While on vacation last sum- junk. The economy shrank 3.8% mer, Ms. Moriarty returned posed new rules that could listed exchange-traded prod- SPY remains the largest last year and will likely shrink from a walk on the beach on limit ETFs’ growth and even ucts this year, according to ETF around, with more than again this year. New York’s Fire Island, and slim down the current lineup, FactSet, is a leveraged prod- $188 billion in assets as of Fri- But investors think back to noticed she had more than a such as curbing the use of de- uct, Direxion’s Daily Junior day, according to FactSet. But 1992 and the last impeachment dozen missed calls. That day, rivatives by mutual funds and Gold Miners Index Bull 3x it now is facing competition in Brazil, when then-President Aug. 24, marked one of the ETFs and limiting their hold- Shares ETF, which aims to from newer, cheaper rivals, Fernando Collor was charged most-volatile stock-market ings of assets that are illiquid, provide investors with three such as Vanguard’s S&P 500 with corruption. His resignation trading sessions in recent or tough to buy and sell. times the daily performance of ETF, which charges investors a eventually ushered in the presi- years, when several ETFs An SEC spokeswoman de- a selection of gold-mining fee of 0.05% on assets com- dency of Fernando Enrique Car- traded at sharp discounts to clined to comment. companies. It is up more than pared with SPY’s more than doso, who oversaw the coun- their underlying holdings. Ms. Moriarty said regula- 260% this year, compared with 0.09%. try’s economic revival. The SEC had been looking tors’ concerns about the prod- a loss of more than 74% in all Fund companies are trying As heartless as they can be, into ETFs before August, but ucts’ proliferation is extreme. of 2015. to slice the market into finer investors appear to be very for- that trading session high- “How many more mutual In 2010, the SEC put a mor- and finer pieces. giving these days. Witness Ar- lighted how the structure of funds do we need? Nobody atorium on new approvals for Janus Capital Group said gentina, which has been at war the popular products could ever asks that question,” she asset managers seeking to en- last month it was planning an

SUMAYA HISHAM/EUROPEAN PRESSPHOTO AGENCY with hedge funds for 15 years backfire in times of market said. (There are more than ter the leveraged ETF market. ETF that tracks companies South Africa’s Jacob Zuma and whose central bank said stress. 8,100 mutual funds and about Then-SEC Chairman Mary that produce or sell organic earlier this year it would start The Dow Jones Industrial 1,600 ETFs in the U.S. as of Schapiro said it was appropri- products and another that What excites investors is printing higher-denomination Average dropped more than February, according to the In- ate because of the “questions seeks to mirror the perfor- that both countries have young bank notes to deal with infla- 1,000 points in early trading vestment Company Institute, a surrounding the risks associ- mance of firms that treat obe- populations that are brimming tion that is estimated at around amid fears that China’s econ- fund-industry group.) ated with the derivative in- sity and related diseases. with potential. What worries 40%. omy was slowing. There were “I don’t necessarily see a struments underlying many While index-tracking funds them is that both countries de- The buying frenzy for Argen- close to 1,300 trading halts, risk,” she said. Ms. Moriarty funds.” make up the lion’s share of pend on China buying their tina’s offering—$70 billion in most of them in exchange- said she has about half of her Ms. Moriarty cited bitcoin’s ETFs, some asset managers commodities and both face pol- orders for $16.5 billion in traded products, according to personal retirement invest- volatility as a risk in the filing are seeking approval for funds icy paralysis caused by unpopu- bonds—should be incentive an SEC report. ments in ETFs. she co-wrote. She said her whose securities are chosen lar leaders and entrenched enough for every country with “I fear that the risk pre- Ms. Moriarty said it took proposed ETF’s structure is by a manager but don’t dis- party establishments. a lousy government to make a sented by some of these new roughly seven years to win similar to that of the $32 bil- close their holdings on a daily As with all emerging mar- change. It is staggering that in- products may not be fully un- SEC approval for what is now lion exchange-traded gold basis, veiling the portfolio kets, both countries are unloved vestors would lend money for derstood by those who have a small but controversial cor- product, the SPDR Gold Trust, manager’s strategy from other by investors and cheap on many 30 years to a country that just invested in them,” SEC Com- ner of the ETF world: lever- that she helped launch in traders. measures. emerged from a default in re- missioner Kara Stein said in a aged ETFs. 2004 because it aims to give Ms. Moriarty said less than The risk with betting on turn for a yield of just 8%. Buy- speech in February. “Indeed, These products, which she investors access to the com- half of the proposals she takes change in emerging markets is ers apparently bid up the bond even plain-vanilla, equity-in- helped ProShare Advisors in- modity without having to hold on are for simple ETFs, saying that problems are so deep and prices further after the deal. dex ETFs may present risks augurate in 2006, often use it. The fund, GLD, has risen they tend to cruise to market the global economic situation But with emerging-market that are not always antici- swap agreements, usually with sharply along with gold prices on a well-worn regulatory so weak that the optimism can currencies up about 10% from pated or fully understood, as investment banks, that am- this year. path, but she has her limits. dissipate quickly. their lows and bond yields evidenced by the events of plify investors’ gains and “I’m optimistic,” Ms. Mori- “If it’s really completely ludi- In South Africa, Mr. Zuma down to 4.6%, there aren’t many Aug. 24, 2015.” losses. arty said about the bitcoin ap- crous, you don’t want to waste backed off a plan to replace a options to get a juicy return. Last year, the agency pro- The top gainer among U.S.- plication. regulators’ time.” 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 B8 | Thursday, April 21, 2016 THE WALL STREET JOURNAL. HEARD ON THE STREET Email: [email protected] FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard

Banks: Watch ‘Brexit’ Relief Rally OVERHEARD VW Drama Won’t End Simple and predictable is more capital. Just like some plane rides, hard to find in banking. Risk Reductions Chirantan Barua at Bern- airline investing can be stress- WithaDeal Smaller, retail-focused Risk-weighted assets under stein sees a big hit to some ful. But United Continental U.K. lenders like Lloyds internal models as a proportion banks. A 10% decline in U.K. Holdings and its investors Banking Group or Virgin of total mortgages house prices would cut 1.5 can exhale. Enter Mitsubishi stage Money, which are expected 2013 2014 2015 percentage points from United has settled a spat left, exit Volkswagen stage to produce steady dividends, Virgin Money Lloyds’s common equity Tier with hedge-fund investors right? have seen valuations suffer 18% 1 ratio, Mr. Barua reckons. over who sits on its board. As shares in the Japanese in the past year even as Eu- 14% The bank doesn’t agree United will add two board car maker tanked in response rope’s larger, more complex 14% that house-price falls would members selected by hedge to an admission it had falsi- Lloyds Banking Group lenders struggle and cut pay- 14% hurt capital anything like funds PAR Capital Manage- fied fuel-economy data, outs. 12% that much. That view is sup- ment and Altimeter Capital Volkswagen stock rose Wed- Lloyds and Virgin are val- 11% ported by the latest Euro- Management, who together nesday in anticipation of a Royal Bank of Scotland* ued at 1.1 times forecast book 13% pean “stress test.” own 7.1% of the company. settlement with U.S. authori- value per share. For most of 9% But if there is some uncer- United also will add a third di- ties following its own admis- last year the former traded 7% tainty over house prices in rector, mutually agreed upon sion of fraud last September. *U.K. mortgage book only above 1.2 times and the lat- Sources: the companies; Bloomberg News general, the outlook is likely by both parties. The German group has ter upward of 1.3 times. (photo) Residential properties in worse in a Brexit scenario. The deal helps United until Thursday to strike a There is one big thing THE WALL STREET JOURNAL. Brighton, U.K. The U.K. finance minister has avoid a proxy contest, a wel- deal with the various U.S. weighing on these banks: warned that mortgage costs come relief given recent man- bodies involved in the emis- this summer’s vote on Europe. others face risks if the U.K. would be higher, while for- agement turmoil and long- sions scandal. A report pub- whether the U.K. should re- However, a vote for “Br- remains in the EU. The eign capital could flee the running operational issues. lished Wednesday in German main a part of Europe. Inves- exit” would cause short-term house-price rally has helped market. And the hedge funds, which business daily Handelsblatt tors should be prepared for a economic disruption due to to cut the amount of capital The trouble is no one don’t have a reputation for suggested Volkswagen was snap rebound if most Britons uncertainty about future mortgage lenders need to knows—and that is what will traditional activist investing, poised to announce an agree- opt for the status quo in trade agreements, a falling hold against their loans. weigh on U.K. mortgage have successfully lobbied for ment. June. pound, a decline or reversal Over the past few years, banks until the vote. more industry experience on As the emissions scandal Britain’s long-term pros- in investment from overseas Lloyds, Virgin Money and Brexit may make matters the board. That can only help. moves out of the limelight, pects either in or out of the and potentially higher inter- Royal Bank of Scotland all much worse for Lloyds, Vir- With the fight behind it, in- the wider case for owning European Union are incredi- est rates. Worries about this have seen big falls in risk- gin and others, but a vote to vestors and management can Volkswagen will take center bly difficult to predict de- already are damping activity. weighted assets as a percent- remain quashes the worst again focus on operational stage. spite the U.K. government’s The Bank of England notes age of their total mortgage immediate risks—and should and financial performance. Crudely, this amounts to a rather specific claim that that investment decisions are loans, also known as a de- mean investors jump on Now, it is up to United to bet that the operation in families would be £4,300 being postponed ahead of cline in risk density. Falling these simple, defensive spend any peace dividend Wolfsburg that makes VW ($6,150) worse off in 14 the vote. house prices would increase banks once more. wisely. cars can be reformed, both to years’ time if Britain exits To be sure, Lloyds and riskiness and thus require —Paul J. Davies make it more responsive to local tastes across the globe and to improve profitability. Alas, there is little evi- Iron-Ore Cuts by Rio, BHP Don’t Herald Price Salvation dence this will happen. Her- bert Diess, whom Volks- Rejoice! Miners Rio Tinto Both tweaks have a par- However, that supply isn’t when the iron-ore market wagen hired from BMW last and BHP Billiton have tial operational explanation. Iron Back coming from Australia’s big- starts to recover. summer to turn around the pruned their guidance for Rio has hit problems with Benchmark iron-ore prices gest miners. The big miners have all VW-branded business, re- production of iron ore. its driverless trains. BHP has Rio has the infrastructure benefited from weaker pro- mains at loggerheads with $120 a metric ton Does this herald the end opted to bring forward in place to boost output to ducer currencies and lower union chief Bernd Osterloh. to their much-criticized maintenance work on its rail 90 360 million tons, and BHP to freight rates, but others like Last week group Chief Ex- strategy of flooding the system. 290 million tons, with rela- Vale and Anglo American ecutive Matthias Mueller 60 market with low-cost supply, But, strategically, the con- tively modest investment. were boosted by these mar- agreed to negotiate directly driving prices down? No. clusion isn’t that tons are 30 They may do so. But the ket factors more, notes Citi- with Mr. Osterloh. But there For a start, the changes being cut because they are 0 more substantial expansion group. Meanwhile, the ques- is little the top boss can do. are tiny in the context of a important to the market. In- is elsewhere in the coming tion of whether cost Labor and local government seaborne iron-ore market of stead, it is that those tons 2014 ’15 ’16 years, namely at Vale’s S11D reductions prove sustainable agents form a majority of about 1.2 billion metric tons. don’t matter too much at all. Source: The Steel Index project and Gina Rinehart’s in the longer term looms voices on Volkswagen’s su- Rio said it would produce Unlike in the past, Rio THE WALL STREET JOURNAL. Roy Hill. larger for rivals like Fortes- pervisory board, which signs 330 million to 340 million and BHP aren’t worried that Meanwhile, Rio and BHP, cue Metals Group and Anglo, off strategy. tons in 2017, down from its other eager miners will mop dip in steelmaking demand which together control which achieved the most News of an emissions deal previous goal of 350 million up demand. Sure, iron-ore is approaching after the about half of the highly con- drastic cuts. in the U.S. will bring inves- tons. BHP shaved its ex- prices are up about 50% this summer. There is still plenty solidated seaborne market, This looks like the culmi- tors a measure of relief. But pected output for the fiscal year, a blessed relief for of supply in the pipeline to are sitting at the bottom of nation of Rio and BHP’s the wider corporate drama at year to June by 4%, to 260 miners. But that isn’t ex- deter would-be iron mon- a flattened cost curve, with strategy, not its reversal. Volkswagen continues. million tons. pected to last. The seasonal gers. a potential advantage if and —Helen Thomas —Stephen Wilmot MONEY & INVESTING

Finance Europe Lags Far Behind Watch Bull Market in U.S. Banks BY MIKE BIRD from February’s lows. The strengthening dollar Central banks in both Eu- has put enormous pressure COMMERZBANK U.S. banking stocks may be rope and Japan have cut in- on emerging-market stocks back in bull market territory, terest rates this year, with since 2013, making it more CEO Casts Doubt but their peers in Japan and the Bank of Japan taking its difficult for companies to On Profit Guidance Europe have a long way to go first step into negative terri- service their external debts. Commerzbank AG’s outgoing before they catch up. tory, and the European Cen- The slump in commodity chief executive officer, Martin The KBW Bank Index has tral Bank going further after prices has had a brutal im- Blessing, raised doubts about risen from the flames, up first taking the plunge in pact, too, dragging down the German bank’s ability to

more than 2014. producers and the banks ex- meet its 2016 net-profit guid- BORIS ROESSLER/EUROPEAN PRESSPHOTO AGENCY MONEYBEAT 20% since its That has led to worries posed to them. ance. CEO Martin Blessing, left, is leaving Commerzbank. February na- about bank profitability in This year, so far at least, “It is getting increasingly am- dir. That both regions. With income the dollar has weakened and bitious to reach the 2015 profit,” ernor Patrick Njoroge. sufficient to prove any crime leaves its just 6.4% below the streams already thin because commodity prices have Mr. Blessing told shareholders at It will reopen April 27, the had been committed. level at which it entered of shrinking yields on many picked up, offering investors the bank’s annual general meet- governor said, and customers Mr. Wolf had been suspected 2016. assets, the prospect of banks in emerging-market stocks— ing. Commerzbank had indicated will have access to deposits of of using inside knowledge in European banks, by com- making even smaller returns including banks—a reason to to investors it expected a slight up to one million Kenyan shil- conducting share trades while he parison, have much further to on their lending seems to be cheer for the first time in improvement over the €1.06 bil- lings, or $10,000, per account. was Swedbank CEO, but a go. In U.S. dollar terms, banks leaving investors cold. quite a while. lion ($1.20 billion) net profit The central bank said that spokeswoman for the prosecu- listed on the Stoxx Europe But banks aren’t doing Commerzbank posted for 2015. means holders of 97% of the tor’s office said this couldn’t be 600 index are 13.6% below badly everywhere. MONEYBEAT The bank’s earnings are pres- bank’s accounts, a total of proved. their Dec. 31 level. Even in dollar terms, sured by low interest rates and 167,290, would have full access Mr. Wolf expressed relief at It could be worse. In dollar emerging-market banks have Read the intense market volatility, Mr. to their funds immediately. the decision. terms, banks listed on blown the competition out of continuously Blessing said, adding that the The KCB role in the reopening —Charles Duxbury Japan’s Nikkei index are more the water. Banks listed on the WSJ updated look first-quarter result will likely be of Chase doesn’t amount to a than 20% below the level at MSCI emerging-market index .COM inside the below that of the previous quar- takeover, but is a precursor to CHINA which they began the year, now are up 25% from their markets, free ter. one, the central bank said. with even less of a recovery 2015 lows. online at wsj.com/moneybeat Board member Martin Zielke “KCB will undertake a de- Property-Sector will succeed Mr. Blessing May 1. tailed due diligence review of Loans Increase 22% —Madeleine Nissen CBL. This will inform decisions Outstanding bank loans to Concerns about the Chinese prises and tackle the high level relating to KCB’s interest in a China’s property sector rose 22%, CHINA currency and the country’s econ- of corporate debt. CHASE BANK KENYA majority stake,” it said. KCB will to 22.51 trillion yuan ($3.48 tril- omy slowing down have abated. Professional fund managers provide a management team for lion) at the end of March from a The yuan has stabilized, easing can also buy Chinese domestic Most Depositors Chase’s reopening and guarantee year earlier, the People’s Bank of ContinuedfrompageB5 worries about capital outflows stocks through two quota-based To Get Funds Now its liquidity, together with the China said. bought 18.1 billion yuan ($2.8 from the mainland, and recent programs, which as of March al- Chase Bank Kenya Ltd. will central bank. —Matina Stevis The growth rate was 1.3 per- billion) of Chinese stocks in data suggest some improvement low them to buy as much as a be managed by major local centage points higher than three March, the biggest monthly in China’s economy. A rebound total $153 billion in mainland as- lender KCB Bank Kenya Ltd. and SWEDBANK months ago, said the central net gain since August, accord- in global shares and commodity sets. There are no figures avail- reopen to the public after suffer- bank, thanks to China’s recent ing to Reuters. prices has also made investors able to show how much of the ing a run on deposits and being Prosecutors Drop housing boom. “From what we’re seeing, feel more comfortable in in- quota investors have used. put in receivership earlier this Probe of Ex-CEO Chinese banks issued 1.5 tril- these are medium- to long-term creasing their exposure to But other data do show who month, the country’s central- Swedish prosecutors have lion yuan of loans to the coun- investors—everyone from mu- emerging markets such as is allowed to invest in mainland bank governor said abandoned an investigation into try’s real-estate sector in the tual funds to the global pension- China, according to analysts. shares, and how much they are Chase Bank Kenya, a mid- alleged insider trading by former first three months of the year, fund community, as well as re- It is too soon to know allowed to invest. Total quota al- sized lender, on April 7 became Swedbank AB Chief Executive 504.5 billion yuan more than tail investors,” Andy Maynard, whether the signs of interest lotted to global investors the third to be put in receiver- Michael Wolf, saying that evi- they issued a year earlier. head of sales and trading in Asia are a blip or the start of global through the Qualified Foreign ship since last summer by Gov- dence they had gathered wasn’t —Grace Zhu for HSBC, said of the increase in investors being ready to trust Institutional Investor (QFII) pro- northbound traffic on the trad- their money again in China’s gram has plateaued at roughly ing link. “It’s not massive in size, historically volatile stock mar- $81 billion since December. Advertisement INTERNATIONAL INVESTMENT FUNDS but there is an uptick.” kets. 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The FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR vestors with access to a Hong director for Fidelity Interna- MSCI China Index, a basket of n Kong brokerage firm. tional, which manages $272 bil- Chinese stocks listed in Hong Chartered Asset Management Pte Ltd - Tel No: 65-6835-8866 Fax No: 65-6835 8865, Website: www.cam.com.sg, Email: [email protected] Kweichow Moutai Co., a pro- lion of assets globally, said she Kong and the U.S., is up 4.5% CAM-GTF Limited OT OT MUS 04/15 USD 289182.56 3.3 -14.2 -7.4 ducer of baijiu liquor whose is watching for whether China over the past 30 days, outpacing Data as shown is for information purposes only. No offer is being made by shares are among the most ac- will follow through on pledges other Asian stock markets and Morningstar, Ltd. or this publication. Funds shown aren’t registered with the For information about listing your funds, tively traded via the link, has to cut down on overcapacity, the S&P 500, which is up 2.5% in U.S. Securities and Exchange Commission and aren’t available for sale to United please contact: Freda Fung tel: +852 2831 States citizens and/or residents except as noted. Prices are in local currencies. climbed 9% this year. overhaul state-owned enter- the period. All performance figures are calculated using the most recent prices available. 2504; email: [email protected]