2015 04 07 cmyk NA 04 - The Wall Street...

Post on 24-Jun-2020

1 views 0 download

transcript

CM Y K Composite

* * * * * * TUESDAY, APRIL 7, 2015 ~ VOL. CCLXV NO. 80 WSJ.com HHHH $3 .00

CONTENTSArts in Review.......... D5Business News.. B2,3,6Global Finance............ C3CFO Journal................. B5Health & Wellness D2-4Heard on the Street C8

In the Markets........... C4Opinion................... A11-13Sports.............................. D6Technology................... B4U.S. News................. A2-6Weather Watch........ B7World News............ A7-9

s Copyright 2015 Dow Jones & Company.All Rights Reserved

>

What’sNews

Israeli officials and con-gressional Republicans sethigh bars for a nuclear dealwith Iran, as critics of the plangeared up for lobbying. A1, A8 Kenya bombed two al-Sha-baab bases in Somalia, daysafter militants gunned downat least 148 people at a uni-versity in Garissa, Kenya. A7 Yemeni civilians trappedby battles between Houthirebels and Saudi-backed fight-ers in Aden said they are run-ning out of food and water. A8 The jury is set to begin de-liberations in the Bostonbombing trial after both sidesgave closing statements. A2AMedicaid proposalwouldgive managed-care recipientsequal coverage for mental-health and medical care. A4Medicare Advantage pay-ments will rise about 1.25%next year, reversing a slight de-cline proposed in February. A4 The U.S. defense secretaryvoiced concern about China’sbehavior in the South ChinaSea and its cyberactivities. A7 Chicago Mayor Emanuelhas seen his lead over rival Gar-cia grow in recent polls aheadof Tuesday’s runoff vote. A4A Turkish court blocked ac-cess to Twitter and YouTubefor failing to remove contentlinked to a hostage crisis. A7 The State Department ap-proved Pakistan’s request tobuy almost $1 billion of U.S.arms to fight insurgents. A9 A probe of a Rolling Stonearticle about an alleged gangrape found no grounds forfiring magazine staffers. A6

V iacom said it would take$785 million in pretax

charges for job cuts and towrite down the value of un-derperforming shows. B1The Dow rallied 117.61 to17880.85 in the first tradingday after a weak jobs report,nudging the blue chips intopositive territory for 2015. C1 The New York Fed chiefblamed first-quarter economicweakness on temporary fac-tors, suggesting he still ex-pects a rate rise this year. A2 BlackRock said it will closeor consolidate some money-market funds in response to arecent regulatory overhaul. C1 Oil-train traffic fueled bythe energy boom is edgingdown due to safety problemsand low crude prices. B1 Samsung Electronics ex-pects to report that its recentprofit slide moderated duringthe latest quarter. B3 DuPont said Trian’s pro-posal to break up the chemi-cal firm would cost $4 bil-lion and hurt research. B3 Commodities investorsare turning bullish on cop-per as a flurry of disruptionsbegin to squeeze supply. C1 Kleiner partner Matt Mur-phy said he is leaving theventure-capital firm to lookfor a new opportunity. B1Virtu Financial is seeking avaluation of about $2.59 bil-lion in an IPO of the high-fre-quency trading firm. C3 Proxy adviser ISS blastedWynn Resorts’ governanceand urged shareholders toboycott board candidates. B3

Business&Finance

World-Wide

IsraelPressesIts CaseAgainstIran Deal

New technologies that promiseto change how food is grown,transported and sold are attract-ing increased interest from thekinds of investors that have fueledSilicon Valley powerhouses.

The money involved in U.S.food startups is still small com-pared with Internet companies.But venture-capital investment inagriculture and food soared 54%to $486 million last year, accord-ing to Dow Jones VentureSource.

Monsanto Co., Bayer AG andother agribusiness giants havelaunched their own VC initiatives,and investment managers haveraised funds dedicated to food andagriculture technology. Private-eq-uity firm Paine & Partners, for in-stance, raised $893million in Jan-uary for investments in boostingproductivity in areas like protein

Please see FOOD page A9

BY ILAN BRATAND JACOB BUNGE

Jake Sposato remembers themoment it all began. It was 1982.He was 15 years old. He was in amovie theater watching “TheRoad Warrior,” starring theyoung actor Mel Gibson. Sud-denly a black muscle car knownin the film as an “Interceptor”roared across the screen.

“I saw that car,” he recalls,“and I thought: That is what a carshould be. That is what I will ownone day.”

Dee Vyper tells a similar story.He was 12, and there was thatblack car. “It was the meanestmuscle car ever to roll across ascreen,” he says. “Man, when Isaw ‘Mad Max’ and ‘The RoadWarrior’ as a kid, everythingchanged.”

Now the subculture devoted tothe films’ wildly imaginative vehi-cles is getting ready for a mo-mentous event.

BY A.J. BAIME

As ‘Mad Max’ Returns,Fans Dust Off Their Muscle Cars

i i i

Die-hards await sequel with mohawksand replica ‘Interceptors;’ no Mel Gibson

“Mad Max: Fury Road” hitsU.S. theaters on May 15, the firstnew Mad Max film in 30 years.Die-hards are gearing up, andputting the finishing touches ontheir replica vehicles and cos-tumes.

“Mad Max,” from 1979, plus“The Road Warrior” and 1985’s“Mad Max Beyond Thunderdome”chronicle the adventures of an ex-istential antihero in a postapoca-lyptic future. The film’s world-wide fans, mostly men, dress infilm-correct costumes at fangatherings. Shoulder pads, oldhockey goalie masks and Mohawkhaircuts are standard equipment.

Please see MAX page A10

Replica Interceptor

Silicon ValleySows SeedsFor New EraIn Farm Tech

Duke Defeats Wisconsin to Win Fifth NCAA Basketball Title

DAVID

J.PH

ILLIP/ASS

OCIAT

EDPR

ESS

HARD WON: The Duke Blue Devils celebrate after beating the Wisconsin Badgers 68-63 in a tight game on Monday night in Indianapolis. D6

to an account Mr. Costa gave to prosecutors andeventually to Brazil’s Congress. Other executivesand Brazilian politicians got a cut of the cash,he said, while a web of money launderershelped them hide some of it overseas.

Police soon raided dozens of homes, turningup sports cars and safes filled with money andjewelry. They seized so many valuable paintingsallegedly bought with bribery proceeds, includ-ing a Salvador Dalí, that they allowed a museumto exhibit some of the works.

Mr. Costa’s account cracked open a scandalthat has riveted Brazil, sparking political and fi-nancial turmoil in the world’s seventh-largesteconomy. Nicknamed Operation Car Wash, it hasforced the resignation of top management atPetrobras, pounded the company’s stock, led toproject cancellations and thousands of layoffs,

Please see BRAZIL page A10

CURITIBA, Brazil—Last summer, a haggard-looking former oil executive stared across a ta-ble at six stone-faced federal prosecutors in acramped office in southern Brazil.

For weeks, he had promised to tell what heknew about a suspected money-launderingscheme but kept holding back, according toprosecutors. Then, he learned they were investi-gating his family, too, for potential evidencetampering.

Paulo Roberto Costa began to talk.For nearly 10 years as a senior executive at

Petróleo Brasileiro SA, known as Petrobras, hetook bribes from the country’s biggest construc-tion firms, allowing them to skim hundreds ofmillions of dollars from the state-controlled oilcompany through inflated contracts, according

BY WILL CONNORS AND LUCIANA MAGALHAES

TOM

WALLACE

/ASS

OCIAT

EDPR

ESS(PHOTO

)

SIDETRACKED: The shipment of oil by train, which surged in recentyears but also caused safety concerns, began to turn down after theprice of crude oil plunged late last year. B1

BRAZIL CRACKS OPENVAST BRIBERY SCANDAL

‘Nine horsemen’ prosecutors on Petrobras case flip witnesses, target lawmakers

Israeli officials and congres-sional Republicans on Mondayset high bars with exacting con-ditions for a nuclear accord withIran, signaling fresh domesticand international pressure on ne-gotiations leading up to a sum-mer deadline.

Leading Arab governments, in-cluding Saudi Arabia, cautiouslyaccepted the landmark diplomacywith Iran, in their most detailedreactions yet. But Saudi officialssaid they needed more assur-ances that Iran’s pathway to anuclear weapons program hasbeen blocked.

The global responses and con-gressional reactions—pittedagainst a determined campaignby the Obama administration—form the outlines of a furious po-litical battle as Israeli officialsand their supporters gear up fora lobbying effort once Congressreturns next week from an Easterrecess.

“There is an alternative: tostand firm, get a much betterdeal, a deal that can be trusted,”Israel’s intelligence chief, YuvalSteinitz, said. “The deal has to bemade on the assumption thatIran might violate it.”

President Barack Obama andhis aides dismissed much of the

Please see IRAN page A8

By Jay Solomon,Nicholas Caseyand Carol E. Lee

Ronald Porter filed a federallawsuit in 2007 after the Navyeliminated his job. He still iswaiting for his employment-dis-crimination case to be heard.

BY JOE PALAZZOLO

Civil suits such as Mr. Porter’sare piling up in some of the na-tion’s federal courts, leading tolong delays in cases involvingSocial Security benefits, per-sonal injury and civil rights,among others.

More than 330,000 suchcases were pending as of lastOctober—a record—up nearly20% since 2004, according to theAdministrative Office of theUnited States Courts. The num-ber of cases awaiting resolution

for three years or more exceeded30,000 for the fifth time in thepast decade.

The federal court for Califor-nia’s Eastern District, where Mr.Porter filed his suit, has a partic-ularly deep backlog. The numberof cases filed per judge, 974 lastyear, is almost twice the nationalaverage. More than 14% of civilcases in that district have beenpending for three years or more.

The Seventh Amendment tothe U.S. Constitution guarantees

the right to a jury trial in civilcases. But the Sixth Amendmentgives people in criminal casesthe right to a “speedy” trial. Theupshot: Criminal cases often dis-place and delay civil disputes,creating a backlog.

“Over the years I’ve receivedseveral letters from people indi-cating, ‘Even if I win this casenow, my business has failed be-cause of the delay. How is thisjustice?’ ” said Judge Lawrence

Please see BACKLOG page A6

Record Backlog Jams CourtsSome 330,000 civil suitswait as judicial vacanciesgo unfilled and criminalcases take priority

Boom in Oil Trains StallsWeekly average barrels of oil andfuel moving on trains each month

THEWALL STREET JOURNAL.

Source: WSJ analysis of data from theAssociation of American Railroads

12

0

3

6

9

million

’152014

March9.7M

Gerald F. Seib: Gulf states testObama salesmanship................. A4

DJIA 17880.85 À 117.61 0.7% NASDAQ 4917.32 À 0.6% NIKKEI 19397.98 g 0.2% STOXX600 397.80 Closed 10-YR. TREAS. g 18/32 , yield 1.902% OIL $52.14 À $3.00 GOLD $1,218.60 À $17.70 EURO $1.0923 YEN 119.53

|

Spin YourOwn StoryPERSONAL JOURNAL | D1

Investing in FundsStars UnveilTheir Hits, Misses

JOURNAL REPORT | R1

GET

TYIM

AGES

Call1-800-iShares for a prospectus, which includes investment objectives, risks, fees, expensesand other information you should read and consider carefully before investing. Risk includesloss of principal. Diversification may not protect against market risk or loss of principal. Transactionsin shares of ETFs will result in brokerage commissions and will generate tax consequences. All regulatedinvestment companies are obliged to distribute portfolio gains to shareholders. The iShares Funds arenot sponsored, endorsed, issued, sold or promoted by S&P Dow Jones Indices LLC nor does this companymake any representation regarding the advisability of investing in the Fund. BlackRock is not affiliatedwith the company named above. Distributed by BlackRock Investments, LLC. ©2014 BlackRock, Inc. Allrights reserved. iSHARES and BLACKROCK are trademarks of BlackRock, Inc. iS-12264-0414

IVV

IJH

IJR

iShares CoreS&P 500 Fund

iShares CoreS&P Mid-Cap Fund

iShares CoreS&P Small-Cap Fund

After all, that’s whyyou invest.iShares Funds arediversified, low costand tax efficient.

Ask your financial advisor.Visit iShares.com

iShares Fundscan help youkeep more ofwhat you earn.

CompositeYELLOW MAGENTA CYAN BLACK

P2JW097000-6-A00100-1--------XA CL,CN,CX,DL,DM,DX,EE,EU,FL,HO,KC,MW,NC,NE,NY,PH,PN,RM,SA,SC,SL,SW,TU,WB,WEBG,BM,BP,CC,CH,CK,CP,CT,DN,DR,FW,HL,HW,KS,LA,LG,LK,MI,ML,NM,PA,PI,PV,TD,TS,UT,WO

P2JW097000-6-A00100-1--------XA