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C M Y K Composite SATURDAY/SUNDAY, APRIL 4 - 5, 2015 WSJ.com VOL. CCLXV NO. 78 ******** HHHH $3.00 WEEKEND THE NEW ROME REVIEW WSJ. MAGAZINE the house of c É line | A sharp slowdown in hir- ing in the U.S. last month ended a yearlong stretch of brisk job creation, stirring worries about the nation’s broader economic growth. A1 Workers’ wages picked up in March, but signs of a long- awaited acceleration in pay gains remain elusive. A2 Treasury bonds rallied in a shortened session in re- sponse to the jobs report, while the dollar weakened. B1 An appeals court decided to leave in place a ruling that restricts the scope of in- sider-trading prosecutions. B2 Tesla’s sales rose in the first quarter despite cheap gasoline and the electric-car maker’s troubles in China. B1 Toyota will start building assembly plants again, budget- ing $1.25 billion for new facto- ries in Mexico and China. B4 The EU is weighing a major investigation into how Inter- net platforms like Google and Amazon operate in Europe. B4 Organic-food purveyors are tackling supply con- straints in one of the food in- dustry’s hottest segments. A1 Fenway Partners has been warned that the SEC may take action against the firm over disclosure issues. B2 Disney is investing $250 million in online fantasy sports business DraftKings. B3 What’s News World-Wide CONTENTS Books.................. C5-10,14 Business News...... B1-5 Food.......................... D1,8-9 Gear & Gadgets..D11-12 Heard on Street ....... B12 Opinion................... A11-13 Sports.............................. A9 Style & Fashion.... D2-4 Travel........................... D5-7 U.S. News ................ A2-4 Weather Watch...... B12 Wknd Investor ...... B7-9 World News........... A6-8 s Copyright 2015 Dow Jones & Company. All Rights Reserved > Inside NOONAN A13 Misplaying America’s Hand With Iran T he durable alliance be- tween Jews and the Dem- ocratic Party is fraying amid concerns about the Iran nu- clear agreement and Obama’s falling out with Netanyahu. A1 Disputes emerged among officials over details of the Iran accord, suggesting a tough course to a final deal. A6 The U.S. has upgraded its largest bunker-buster bomb, a weapon that could destroy fortified Iranian facilities. A7 Officials called for probes into reports that Iraqi security forces executed captives and looted property in Tikrit. A7 EU officials worried that German oversight of airlines was lax long before the crash of Germanwings 9525. A8 Black-box data show the plane was repeatedly accel- erated as it descended. A8 Recent arrests are focus- ing attention on jihadists’ ef- forts to recruit U.S. women. A3 Kenyans agonized over their government’s inability to prevent a second massacre by militants within two years. A8 A U.S. geologist jailed in China for over seven years was released and deported. A8 Texas leaders are grap- pling with how to maintain a beefed-up border patrol be- gun by former Gov. Perry. A4 A Florida town is cracking down on spring-break revelry after shootings at a party. A3 Business & Finance A sharp deceleration in hiring last month ended a yearlong stretch of heady job creation, stirring concern about broader economic growth amid mounting evidence of a slowdown. Closely watched gauges of consumer spending, capital in- vestment and manufacturing output have all slumped in re- cent months. A strong dollar has restrained U.S. exports and could BY BEN LEUBSDORF Slowing Job Growth Tests Economy Timing of Fed rate increases called into question as weak hiring punctuates recent hiccups GOLDENSTEDT, Germany— Every morning, Bianka Pille packs her 5-year-old daughter’s lunch and sends her off to kin- dergarten with a warning: Watch out for the big bad wolf. The sighting this past winter of a beast long confined to fairy tales has caused a rift in this town of 9,000 people. While anxious parents and lo- cal shepherds talk about a wolf hunt, conservationists say an ex- cessively literal reading of “Little Red Riding Hood” is fueling hys- teria against a canine they say BY ANDREA THOMAS merely “wants to play.” Meanwhile, shep- herds and civil servants are devising kinder ways to fend off the predator: loud music, news broadcasts, fear- less donkeys and canine brainwashing. It all started in the late hours of Feb. 9, when Bianka von Döllen, a 42-year-old mother, spotted a lone wolf near the town’s day nursery. “I froze, it was scary,” she said. “I no longer allow my daughter to ride her bike…I fear for her.” About 150 years have passed since German hunters eradicated wolves from the nation’s woodlands. But the animal’s threatening aura has persisted through folk tales, in- cluding those by Ger- man writers Jacob and Wilhelm Grimm. So when wolf packs began reap- pearing in Germany late in the 20th century, thanks to the efforts of conservationists, the animals Please see WOLVES page A10 Wolf Many U.S. Jewish leaders are unnerved both by the new Iran nuclear agreement and the pub- lic falling out between President Barack Obama and his Israeli counterpart, developments that are creating a rift in the durable alliance between Jews and the Democratic Party in the run-up to the 2016 elections. Worried that Iran might still develop a nuclear weapon de- spite the accord announced Thursday, the Jewish leaders say they feel torn between an Obama administration that has pressed hard for a deal and an Israeli government that has repeatedly warned that Iran is a grave threat to the Jewish state and can’t be trusted to abandon its nuclear ambitions. A group of Jewish Democratic House members met with White House Chief of Staff Denis Mc- Donough in his office last week and cautioned that for them to help “sell a very unpopular [Iran nuclear] deal to our constitu- ents,” Mr. Obama must “increase his popularity with our constitu- ents,” said a Democratic con- gressman involved in the meet- ing. Republicans have begun mak- ing moves to try to capitalize on this unease, hoping to peel away Jewish votes and campaign con- tributions that have historically skewed Democratic. Republican congressional leaders have been critical of the proposed Iran deal, and the GOP’s likely 2016 presidential contenders have largely opposed it. It isn’t clear congressional Re- publicans have a way to block any final deal, and experts warn that even if a Republican wins the White House in 2016, it won’t be as easy to wipe off the books an international agreement as campaign rhetoric may suggest. Hillary Clinton, the presumed Please see RIFT page A6 BY PETER NICHOLAS HOLY WEEK: Women in Lima, Peru, took part in a Good Friday procession, while Jewish people world-wide celebrated the beginning of Passover. HAVANA, Cuba—Listed at $1.2 million, the penthouse has broad terraces, marble floors and stunning waterfront views stretching from the Darth Vader-style Rus- sian Embassy to Meyer Lansky’s old Riviera hotel. That might seem pricey for a Communist country whose average worker earns around $20 a month. But owner John Jefferis, a 57- year-old hotelier from Bermuda, says his tar- get buyer belongs to a different demo- graphic altogether. “There are very few apartments that can be legally purchased by foreigners, and when there’s a limited supply of something, usually there’s a premium for the price,” says Mr. Jefferis, who adds that jet-setters like his expat neighbors here can probably afford to splurge. “It’s not their first or second or third home, Please see CUBA page A10 BY MICHAEL ALLEN AND KEJAL VYAS RODRIGO ABD/ASSOCIATED PRESS CUBA’S REAL-ESTATE REVOLUTION Diplomatic thaw brings wave of interest in island’s property; foreign buyers face tough road ing steps to tackle supply con- straints that are hampering the growth of one of the hottest cate- gories of the U.S. food industry. Companies including soup maker Pacific Foods of Oregon Inc. and publicly traded burrito chain Chipotle Mexican Grill Inc.are dig- ging deeper into the supply chain with such moves as financing farmers, offering technical train- ing and hiring full-time headhunt- ers to recruit organic growers. The efforts are aimed at ramping up organic-food output that has failed to keep pace with surging consumer demand, due in part to the significant costs Please see ORGANIC page A4 Last year, executives at or- ganic cereal maker Nature’s Path Foods Inc. grew so frustrated with organic-grain shortfalls that they took a radical step: They bought a farm. The three-decade-old Cana- dian company plunked down more than $2 million for 2,800 acres of Montana cropland, part of an effort to seize greater con- trol of its supplies of wheat, oats and other ingredients. “We just want to secure our own future,” said founder Arran Stephens. Nature’s Path is among a num- ber of organic-food purveyors tak- BY ILAN BRAT Some Germans Really Are Afraid of the Big Bad Wolf i i i Defenders howl that parents, shepherds are overreacting; guardian donkeys LISETTE POOLE FOR THE WALL STREET JOURNAL continue to drag down broader growth, many economists say. The labor market has ap- peared more resilient, but Fri- day’s report from the Labor De- partment showed growth in nonfarm payrolls slowed in March to a seasonally adjusted 126,000, the weakest hiring in 15 months. The unemployment rate held steady at 5.5%. With hiring estimates for January and February revised down, job growth averaged 197,000 a month during the first quarter, down from an av- erage of 324,000 in the final three months of 2014 and ee- rily similar to hiring in the first quarter of last year, when economic activity contracted for the first time since 2011. “The recovery’s not as robust as was assumed,” said Megan Greene, chief economist at John Hancock Asset Management. “The jobs data is finally catching up to the rest of the indicators.” The sudden downturn in hir- ing could complicate the Federal Reserve’s plans on when to raise short-term interest rates. Cen- tral-bank officials have said con- tinued improvement in labor markets would be a key factor in their thinking on rates, and so Friday’s report reduces the Please see JOBS page A2 Soft Quarter The U.S. economy has seen several disappointing first quarters since the recovery began. Change from the end of the previous quarter in nonfarm payrolls THE WALL STREET JOURNAL. Sources: Labor Dept. (payrolls); Commerce Dept. (GDP) Note: All figures are seasonally adjusted –0.2 0 0.2 0.4 0.6 0.8 million ’11 ’12 ’13 ’14 ’15 2010 2.5% 1.6% 2.3% 2.2% 2.4% First quarters Change in annual GDP Iran Deal Fuels Rift In Jewish, Democrat Alliance Christians Around the Globe Prepare to Celebrate Easter Wage growth weak..................... A2 Bonds rise, dollar falls................ B1 Heard: The Fed fallout ............ B12 Hunger for Organic Foods Stretches Supply Chain Along the famed Malecón seawall in Havana, some buildings are showing the effects of Cuba’s property boom, while others are still badly in need of a fresh coat of paint. Rocky road to final Iran deal..... A6 Rouhani says pact a step toward mending ties.................. A6 Composite YELLOW MAGENTA CYAN BLACK P2JW094000-8-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,WE BG,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 P2JW094000-8-A00100-1--------XA
Transcript
Page 1: 2015 04 04 cmyk NA 04 - The Wall Street Journalonline.wsj.com/public/resources/documents/pageone0404.pdfThelabor market has ap-peared moreresilient, but Fri-day’sreport from the

CM Y K Composite

SATURDAY/SUNDAY, APRIL 4 - 5, 2015 WSJ.com

VOL. CCLXV NO. 78 * * * * * * * * HHHH $3 .00WEEKEND

THENEW

ROME

REVIEW WSJ. MAGAZINEthe house of cÉline

|

A sharp slowdown in hir-ing in the U.S. last monthended a yearlong stretch ofbrisk job creation, stirringworries about the nation’sbroader economic growth. A1Workers’ wages picked upin March, but signs of a long-awaited acceleration in paygains remain elusive. A2 Treasury bonds rallied ina shortened session in re-sponse to the jobs report,while the dollar weakened. B1 An appeals court decidedto leave in place a rulingthat restricts the scope of in-sider-trading prosecutions. B2 Tesla’s sales rose in thefirst quarter despite cheapgasoline and the electric-carmaker’s troubles in China. B1 Toyota will start buildingassembly plants again, budget-ing $1.25 billion for new facto-ries in Mexico and China. B4 The EU is weighing a majorinvestigation into how Inter-net platforms like Google andAmazon operate in Europe. B4 Organic-food purveyorsare tackling supply con-straints in one of the food in-dustry’s hottest segments. A1 Fenway Partners hasbeen warned that the SECmay take action against thefirm over disclosure issues. B2 Disney is investing$250 million in online fantasysports business DraftKings. B3

What’sNewsWorld-Wide

CONTENTSBooks.................. C5-10,14Business News...... B1-5Food.......................... D1,8-9Gear & Gadgets..D11-12Heard on Street.......B12Opinion................... A11-13

Sports.............................. A9Style & Fashion.... D2-4Travel........................... D5-7U.S. News................ A2-4Weather Watch...... B12Wknd Investor...... B7-9World News........... A6-8

s Copyright 2015 Dow Jones & Company.All Rights Reserved

>

InsideNOONAN A13

MisplayingAmerica’s Hand

With Iran

The durable alliance be-tween Jews and the Dem-

ocratic Party is fraying amidconcerns about the Iran nu-clear agreement and Obama’sfalling out with Netanyahu. A1 Disputes emerged amongofficials over details of theIran accord, suggesting atough course to a final deal. A6 The U.S. has upgraded itslargest bunker-buster bomb,a weapon that could destroyfortified Iranian facilities. A7 Officials called for probesinto reports that Iraqi securityforces executed captives andlooted property in Tikrit. A7 EU officials worried thatGerman oversight of airlineswas lax long before the crashof Germanwings 9525. A8 Black-box data show theplane was repeatedly accel-erated as it descended. A8 Recent arrests are focus-ing attention on jihadists’ ef-forts to recruit U.S. women. A3 Kenyans agonized overtheir government’s inability toprevent a second massacre bymilitants within two years. A8 A U.S. geologist jailed inChina for over seven yearswas released and deported. A8 Texas leaders are grap-pling with how to maintain abeefed-up border patrol be-gun by former Gov. Perry. A4 A Florida town is crackingdown on spring-break revelryafter shootings at a party. A3

Business&Finance

A sharp deceleration in hiringlast month ended a yearlongstretch of heady job creation,stirring concern about broadereconomic growth amid mountingevidence of a slowdown.

Closely watched gauges ofconsumer spending, capital in-vestment and manufacturingoutput have all slumped in re-cent months. A strong dollar hasrestrained U.S. exports and could

BY BEN LEUBSDORF

Slowing Job Growth Tests EconomyTiming of Fed rateincreases called intoquestion as weak hiringpunctuates recent hiccups

GOLDENSTEDT, Germany—Every morning, Bianka Pillepacks her 5-year-old daughter’slunch and sends her off to kin-dergarten with a warning: Watchout for the big bad wolf.

The sighting this past winterof a beast long confined to fairytales has caused a rift in thistown of 9,000 people.

While anxious parents and lo-cal shepherds talk about a wolfhunt, conservationists say an ex-cessively literal reading of “LittleRed Riding Hood” is fueling hys-teria against a canine they say

BY ANDREA THOMAS merely “wants to play.”Meanwhile, shep-

herds and civil servantsare devising kinderways to fend off thepredator: loud music,news broadcasts, fear-less donkeys and caninebrainwashing.

It all started in thelate hours of Feb. 9,when Bianka von Döllen,a 42-year-old mother,spotted a lone wolf nearthe town’s day nursery.

“I froze, it was scary,” she said.“I no longer allow my daughter toride her bike…I fear for her.”

About 150 yearshave passed sinceGerman hunterseradicated wolvesfrom the nation’swoodlands. But theanimal’s threateningaura has persistedthrough folk tales, in-cluding those by Ger-man writers Jacoband Wilhelm Grimm.

So when wolfpacks began reap-

pearing in Germany late in the20th century, thanks to the effortsof conservationists, the animals

Please see WOLVES page A10

Wolf

Many U.S. Jewish leaders areunnerved both by the new Irannuclear agreement and the pub-lic falling out between PresidentBarack Obama and his Israelicounterpart, developments thatare creating a rift in the durablealliance between Jews and theDemocratic Party in the run-upto the 2016 elections.

Worried that Iran might stilldevelop a nuclear weapon de-spite the accord announcedThursday, the Jewish leaders saythey feel torn between an Obamaadministration that has pressedhard for a deal and an Israeligovernment that has repeatedlywarned that Iran is a gravethreat to the Jewish state andcan’t be trusted to abandon itsnuclear ambitions.

A group of Jewish DemocraticHouse members met with WhiteHouse Chief of Staff Denis Mc-Donough in his office last weekand cautioned that for them tohelp “sell a very unpopular [Irannuclear] deal to our constitu-ents,” Mr. Obama must “increasehis popularity with our constitu-ents,” said a Democratic con-gressman involved in the meet-ing.

Republicans have begun mak-ing moves to try to capitalize onthis unease, hoping to peel awayJewish votes and campaign con-tributions that have historicallyskewed Democratic.

Republican congressionalleaders have been critical of theproposed Iran deal, and theGOP’s likely 2016 presidentialcontenders have largely opposedit. It isn’t clear congressional Re-publicans have a way to blockany final deal, and experts warnthat even if a Republican winsthe White House in 2016, it won’tbe as easy to wipe off the booksan international agreement ascampaign rhetoric may suggest.

Hillary Clinton, the presumedPlease see RIFT page A6

BY PETER NICHOLAS

HOLY WEEK: Women in Lima, Peru, took part in a Good Friday procession, while Jewish people world-wide celebrated the beginning of Passover.

HAVANA, Cuba—Listed at $1.2 million,the penthouse has broad terraces, marblefloors and stunning waterfront viewsstretching from the Darth Vader-style Rus-sian Embassy to Meyer Lansky’s old Rivierahotel.

That might seem pricey for a Communistcountry whose average worker earns around$20 a month. But owner John Jefferis, a 57-year-old hotelier from Bermuda, says his tar-get buyer belongs to a different demo-graphic altogether.

“There are very few apartments thatcan be legally purchased by foreigners,and when there’s a limited supply ofsomething, usually there’s a premium forthe price,” says Mr. Jefferis, who addsthat jet-setters like his expat neighborshere can probably afford to splurge. “It’snot their first or second or third home,

Please see CUBA page A10

BY MICHAEL ALLEN AND KEJAL VYAS

RODRIGOABD

/ASS

OCIAT

EDPR

ESS

CUBA’S REAL-ESTATE REVOLUTIONDiplomatic thaw brings wave of interest in island’s property; foreign buyers face tough road

ing steps to tackle supply con-straints that are hampering thegrowth of one of the hottest cate-gories of the U.S. food industry.Companies including soup makerPacific Foods of Oregon Inc. andpublicly traded burrito chainChipotle Mexican Grill Inc.are dig-ging deeper into the supply chainwith such moves as financingfarmers, offering technical train-ing and hiring full-time headhunt-ers to recruit organic growers.

The efforts are aimed atramping up organic-food outputthat has failed to keep pace withsurging consumer demand, duein part to the significant costs

Please see ORGANIC page A4

Last year, executives at or-ganic cereal maker Nature’s PathFoods Inc. grew so frustratedwith organic-grain shortfalls thatthey took a radical step: Theybought a farm.

The three-decade-old Cana-dian company plunked downmore than $2 million for 2,800acres of Montana cropland, partof an effort to seize greater con-trol of its supplies of wheat, oatsand other ingredients. “We justwant to secure our own future,”said founder Arran Stephens.

Nature’s Path is among a num-ber of organic-food purveyors tak-

BY ILAN BRAT

Some Germans Really Are Afraid of the Big Bad Wolfi i i

Defenders howl that parents, shepherds are overreacting; guardiandonkeys

LISE

TTEPO

OLE

FORTH

EWALL

STRE

ETJO

URN

AL

continue to drag down broadergrowth, many economists say.

The labor market has ap-peared more resilient, but Fri-day’s report from the Labor De-partment showed growth innonfarm payrolls slowed inMarch to a seasonally adjusted126,000, the weakest hiring in 15months. The unemployment rateheld steady at 5.5%.

With hiring estimates forJanuary and February reviseddown, job growth averaged197,000 a month during thefirst quarter, down from an av-erage of 324,000 in the finalthree months of 2014 and ee-rily similar to hiring in thefirst quarter of last year, wheneconomic activity contracted

for the first time since 2011.“The recovery’s not as robust

as was assumed,” said MeganGreene, chief economist at JohnHancock Asset Management.“The jobs data is finally catchingup to the rest of the indicators.”

The sudden downturn in hir-ing could complicate the FederalReserve’s plans on when to raiseshort-term interest rates. Cen-tral-bank officials have said con-tinued improvement in labormarkets would be a key factor intheir thinking on rates, and soFriday’s report reduces the

Please see JOBS page A2

Soft QuarterThe U.S. economy has seen several disappointing first quarters sincethe recovery began.Change from the end of the previous quarter in nonfarm payrolls

THEWALL STREET JOURNAL.Sources: Labor Dept. (payrolls); Commerce Dept. (GDP)Note: All figures are seasonally adjusted

–0.2

0

0.2

0.4

0.6

0.8 million

’11 ’12 ’13 ’14 ’152010

2.5% 1.6% 2.3% 2.2% 2.4%

First quarters

Change in annual GDP

Iran DealFuels RiftIn Jewish,DemocratAlliance

Christians Around the Globe Prepare to Celebrate Easter

Wage growth weak..................... A2 Bonds rise, dollar falls................ B1 Heard: The Fed fallout ............ B12

Hunger forOrganicFoodsStretches Supply Chain

Along the famed Malecón seawall in Havana, some buildings are showing the effects ofCuba’s property boom, while others are still badly in need of a fresh coat of paint.

Rocky road to final Iran deal..... A6 Rouhani says pact a step

toward mending ties.................. A6

CompositeYELLOW MAGENTA CYAN BLACK

P2JW094000-8-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

P2JW094000-8-A00100-1--------XA

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