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C M Y K Composite ****** THURSDAY, APRIL 16, 2015 ~ VOL. CCLXV NO. 88 WSJ.com HHHH $3.00 Marvel superheroes. They are surrounded by Plexi- glas, and they have nametags that include Wolverine, Profes- sor X, Iceman and Beast. The la- bels fit the plant’s Mojo. The fac- tory, once co-owned by Toyota Motor Corp. and General Motors Co., now displays an “Evolution of Man” mural showing apes morphing into men and men morphing into Iron Man. More than a dozen of Tesla’s Please see ROBOTS page A12 Ford’s Godzilla Uninvited Visitor On Capitol Lawn AIR MAIL: A gyrocopter landed on the Capitol’s West Lawn on Wednesday, piloted by a rural mail carrier from Florida who said he was delivering letters to legislators urging campaign-finance reform. Above, a bomb-squad member approaches the craft. CONTENTS Arts in Review.......... D5 Business News B2,3,5,8 Earnings ......................... B7 Global Finance............ C3 Heard on the Street C10 Opinion.................. A13-15 Small Business ......... B6 Sports.............................. D6 Style & Travel........ D2-4 Technology................... B4 U.S. News................. A2-6 Weather Watch ........ B7 World News.......... A7-11 s Copyright 2015 Dow Jones & Company. All Rights Reserved > What’s News The Clinton Foundation has decided to continue accepting donations from foreign govern- ments, despite Hillary Clinton’s candidacy for president. A1, A4 Iran’s president accused the U.S. Congress of meddling in sensitive nuclear talks, sig- naling potential new obstacles in the way of a final deal. A8 Iraq’s premier said Saudi Arabia threatens a regional sectarian war by launching airstrikes against Iranian- backed insurgents in Yemen. A8 Islamic State attacked vil- lages near the capital of Iraq’s Anbar province, signaling diffi- culties ahead for Baghdad as it seeks to retake the region. A8 China is likely to ramp up infrastructure spending and ease credit after GDP grew at its slowest pace in six years. A7 Beijing gave the green light for construction of China’s first domestically de- signed nuclear reactor. A7 A new study has triggered a dispute about the accuracy of genomic tests used to match cancer patients with drugs. A3 The House passed bills aimed at preventing abuses at the IRS following a series of controversies at the agency. A4 The U.S. health-insurance industry is calling for tougher rules for approving and track- ing medical devices. A2 A Florida eye doctor who faces bribery charges with Menendez was arrested in a health-care fraud case. A3 Aaron Hernandez, a former New England Patriots star, was found guilty of murder. D6 T he EU charged Google with skewing results to favor its comparison-shopping service, but the complaint could lead to broader antitrust action. A1, A10 Japan dethroned China as the top foreign holder of U.S. Treasurys for the first time since the financial crisis. A1 Bank of America swung to a profit as legal expenses fell, but the results missed forecasts and disappointed investors. C1 Nokia agreed to buy Alca- tel-Lucent in a $16.6 billion all-stock deal, capping a pur- suit stretching back to 2013. B4 Netflix added a better-than- expected 4.88 million stream- ing subscribers last quarter, helped by overseas growth. B3 GM can retain a bankruptcy shield protecting it from billions in legal claims tied to faulty igni- tion switches, a judge ruled. B2 The regulator of Fannie Mae and Freddie Mac will direct the firms to slightly cut mortgage fees for riskier borrowers. A2 Small-cap shares hit a new high and the Nasdaq neared a record. The Dow added 75.91 points to close at 18112.61. C4 U.S. industrial output fell last quarter, the latest evi- dence of a cooling economy. A2 The ECB chief said stimu- lus efforts are taking hold in the European economy. A11 Virtu’s IPO will test percep- tions of a firm that has been at the center of controversy around high-speed trading. C1 Etsy priced its IPO at $16 a share, valuing the online crafts marketplace at $1.8 billion. B1 Business & Finance World-Wide L. TO R.: CHARLES KRUPA/ASSOCIATED PRESS, NICOLAUS CZARNECKI/ZUMA PRESS MICHAEL REYNOLDS/EUROPEAN PRESSPHOTO AGENCY Workers at a Navistar truck plant in Ohio weren’t eager to make friends when a new col- league showed up on the factory floor nearly 40 years ago. It was a welding robot, and people manning the production line thought of it as an intruder representing a wave of automa- tion jeopardizing their jobs. They nicknamed it “Scabby.” Today, the brick-walled truck plant is closed, and the hostility toward machines is thawing. Giant bots capable of doing the work of several people have earned respect after decades of coexistence and, in the process, are getting new, more admiring nicknames. The trend is best seen at a plant in Freemont, Calif., oper- ated by Tesla Motors Inc., a company founded by the huge comic book fan Elon Musk. The biggest robots are named after BY MIKE RAMSEY Factory Workers Warm Up To Their Mechanical Colleagues i i i Tesla names robots after superheroes, but Nissan prefers anime; Godzilla is a favorite A New Squeeze In Economy Class MIDDLE SEAT | D3 DJIA 18112.61 À 75.91 0.4% NASDAQ 5011.02 À 0.7% NIKKEI 19869.76 g 0.2% STOXX 600 414.06 À 0.6% 10-YR. TREAS. À 1/32 , yield 1.900% OIL $56.39 À $3.10 GOLD $1,201.50 À $8.70 EURO $1.0685 YEN 119.14 | Reality Check Hollywood rushes to fill gap as virtual-reality companies gear up for consumers BUSINESS & TECH. | B1 The board of the Bill, Hillary and Chelsea Clinton Foundation has decided to continue accept- ing donations from foreign gov- ernments, primarily from six countries, even though Hillary Clinton is running for president, a summary of the new policy to be released Thursday shows. The rules would permit dona- tions from Australia, Canada, Ger- many, the Netherlands, Norway and the U.K.—countries that sup- port or have supported Clinton Foundation programs on health, poverty and climate change, ac- cording to the summary. That means other nations would be prohibited from making large donations to the foundation. But those governments would be allowed to participate in the Clin- ton Global Initiative, a subsidiary of the foundation where compa- nies, nonprofit groups and govern- ment officials work on solutions to global problems. Ministers from any government would be allowed to attend meet- ings and appear on panels at the group’s meetings and their govern- ments would be allowed to pay at- tendance fees of $20,000. The new policy, which was de- signed to address growing concern that the donations would present a conflict of interest for a Hillary Clinton presidency, all but ensures that Mrs. Clinton’s links to the charity will be a feature of the emerging presidential campaign. The campaign did not imme- diately respond to a request for comment. Last month, when asked about foreign contribu- tions, Mrs. Clinton said she was “very proud of the work the foundation does” and noted that there are “hundreds of thou- Please see CLINTON page A4 BY JAMES V . GRIMALDI Clinton Charity To Keep Foreign Donors The European Commission took direct aim at Google Inc. Wednesday, charging the Inter- net-search giant with skewing results to favor its comparison- shopping service. But the for- mal complaint may only be the opening salvo in a broader as- also opened a second front, in- tensifying a separate probe of Google’s conduct with its An- droid mobile-operating system. If history is a guide, the Eu- ropean case against Google will grow. The bloc’s last big case against a U.S. tech firm began with charges against Microsoft Corp. in 2000 related to com- puter servers. The commission later added charges against Mi- crosoft for bundling its media player, and Web browser, with its Windows operating system. The charges could lead to billions of euros in fines and re- quirements for Google to change its business practices. Microsoft ultimately paid €2.2 billion ($2.3 billion). But people inside and outside Microsoft say the case also altered the company’s culture, making it less brash and more cautious. “There are certain things you know you can’t do that other companies can do,” said Jean- François Bellis, a lawyer who represented Microsoft against the EU. Being labeled “domi- nant,” as the EU labeled Google on Wednesday, means execu- tives now must worry about pleasing regulators, as well as users. Inside Google on Wednes- day, “the amount of concern over [antitrust enforcement] is enormous,” said one person Please see CHARGES page A10 sault that prompts big changes at Google. European antitrust chief Margrethe Vestager said she continues to examine other do- mains, such as travel and local services, where Google is ac- cused of favoring its own serv- ices over those of others. She By Tom Fairless in Brussels, and Rolfe Winkler and Alistair Barr in San Francisco Europe Charges Google Over Searches Antitrust complaint tied to firm’s comparison- shopping service could lead to broader action Victims, Heroes Unite Two Years After Boston Marathon Bombings THEN AND NOW: Carlos Arredondo, in cowboy hat, helped Jeff Bauman after he was injured in the 2013 blast. The two were reunited Wednesday. Clinton applies lessons from failed 2008 bid .............................. A4 ‘Search bias’ is at heart of antitrust case............................... A10 Scrutiny turns to Android..... A10 MEDICARE OVERPAYS AS HOSPITAL PRICES RISE Soaring bills for sickest patients can throw payment formula out of whack New Jersey’s Christ Hospital col- lected $2.93 million in special pay- ments for treating the sickest Medi- care patients in 2013, more than quadruple what it had the prior year. Much of the increase didn’t come from treating more patients or providing more care. It came from higher list prices charged by the Jersey City hospi- tal—markups of at least 60% from the prior year for many patients with common diagnoses, billing records show. List prices charged by hospitals aren’t supposed to matter to Medicare because the government doesn’t pay them. The federal program almost al- ways pays fixed amounts based mostly on patients’ conditions. That is supposed to prevent hospitals from sticking the government with big price hikes. Nevertheless, jumps in list prices hit the govern- ment every year in one corner of the roughly $600 billion Medicare system: treating complicated cases known as “cost outliers.” Medicare allows hospitals to collect for such patients based on the actual costs of treating them. But because hospi- tals don’t provide cost data until many months after patients are treated, the gov- ernment has to estimate costs using a formula that relies heavily on list prices. When prices rise faster than actual costs, the government overpays. Medicare can seek to claw back overpayments when it gets fresher informa- tion about costs, but it rarely does, hospital records show. A Wall Street Journal analysis of Medicare claims data and financial filings from medical facili- ties shows that many hospitals increased prices faster than costs rose, affecting outlier payments. The Journal identified $2.6 billion in overpayments Medicare made to general hospitals between 2010 and 2013 because of overestimates of hospitals’ Please see PRICES page A12 By Christopher Weaver, Anna Wilde Mathews and Tom McGinty Japan dethroned China as the top foreign holder of U.S. Trea- surys for the first time since the financial crisis, following a wave of purchases by buyers shifting money to the U.S. as Japan’s eco- nomic policies push down interest rates there. In reclaiming its status as the largest foreign creditor to Amer- ica in U.S. official data, Japan is reasserting itself as Beijing holds its Treasury portfolio steady amid a weakening Chinese economy. U.S. debt bears higher yields than government bonds offered in Please see JAPAN page A6 By Min Zeng in New York, Lingling Wei in Beijing and Eleanor Warnock in Tokyo Japan Knocks China From Perch as No. 1 U.S. Creditor Greg Ip: U.S. influence hinges on the yuan............................................. A2 China feels heat as GDP growth weakens............................................. A7 Copyright © 2015, Oracle and/or its affiliates. All rights reserved. More Enterprise SaaS Applications Than Any Other Cloud Services Provider Oracle Cloud Applications ERP Financials Procurement Projects Supply Chain HCM Human Capital Recruiting Talent CRM Sales Service Marketing Composite YELLOW MAGENTA CYAN BLACK P2JW106000-6-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,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 P2JW106000-6-A00100-1--------XA
