2015 04 14 cmyk na 04 - the wall street...

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C M Y K Composite Russia Lifts Ban On Arms To Iran but it is a choice “between the bitter and more bitter.” Here and throughout the Middle East, many Christians, under attack and without the protection of functioning states, face difficult choices amid the region’s roiling sec- tarian conflicts. Some are taking sides, oth- ers are taking up arms. In Iraq and Syria, for example, Chris- tians fight alongside Kurds against Islamic State, even though some Christians accuse the Kurds of seeking to one day incorporate them and their land into Kurdish-controlled territories. While both Christians and Muslims suffer from the vio- lent extremism engulfing the region, the stakes and consequences differ, said the Rev. Fadi Daou, a Lebanese Maronite Catho- lic priest and professor of Christian theology. In Lebanon and Iraq, Shiite Muslims rely on Please see MIDEAST page A12 AL-QAA, Lebanon—Three decades ago, plainclothes Syr- ian agents went door to door in this border village seeking out young Christian men, who were abducted and killed in a notorious chapter of Lebanon’s 15-year civil war. The village’s nearly 2,000 Christians now find themselves siding with the same Syrian re- gime they blame for what many call the 1978 massacre. That is because a few miles away, hundreds of Islamist ex- tremists tied to al Qaeda and Is- lamic State stalk the porous bor- der region separating Lebanon and Syria. Standing between the militants and the village are Leb- anese troops aided by the Iran-backed Lebanese Shiite militia Hezbollah, whose men are also fight- ing for Syrian President Bashar al-Assad. “Yes, I prefer the Syrian regime over these ter- rorist groups,” a 45-year-old Al-Qaa resident said, BY SAM DAGHER Leaving Lebanon Percentage of Lebanon's population that is Christian THE WALL STREET JOURNAL. Source: World Christian Database 80 0 20 40 60 % 1900 ’50 2000 2015 34.2% Federal trademark officials in Alexandria, Va., recently received an unusual package: a hand-deliv- ered parcel containing vials of a clear liquid that smelled of or- anges. The sender wasn’t a crank. It was a corporate trademark lawyer representing Flotek Industries Inc., a Texas producer of hydrau- lic-fracturing fluids used to ex- tract oil and gas from rocks deep in the earth. The little bottles in the box were samples of a branding brain- storm that might be called eau de BY JACOB GERSHMAN Companies Say Trademarks for Scents Make Sense i i i Others sniff at notion that smells deserve protected status; eau de fracking fracking: a specially de- veloped scent that is supposed to make Flotek’s product smell like a glass of OJ. Flotek says its custom- ers have come to asso- ciate the orange scent with its line of fracking chemicals and wants the U.S. Patent and Trademark Office to register it as a trademark. Flotek lawyer Douglas Wolf said it was wiser to deliver the ap- plication by messenger than send it in the U.S. mail. “You can imag- ine the security concerns with three vials of liquid in a box,” he said. Flotek is one of a small number of com- panies trying to trade- mark their efforts to grab customers by the nose. A U.S. ukulele company won trade- mark protection for a scent that—according to its application— lends its little stringed instru- ments a distinctive piña colada aroma. Last fall, Verizon Wireless, the nation’s largest cellphone carrier, Please see SCENTS page A12 Sudan Votes Amid Boycott by Opposition Parties MOSA’AB ELSHAMY/ASSOCIATED PRESS BALLOT BOX: A woman casts her vote Monday on the first day of a presidential election expected to extend the rule of Omar al-Bashir. A10 DJIA 17977.04 g 80.61 0.4% NASDAQ 4988.25 g 0.2% NIKKEI 19905.46 g 0.01% STOXX 600 413.63 À 0.2% 10-YR. TREAS. À 4/32 , yield 1.938% OIL $51.91 À $0.27 GOLD $1,199.30 g $5.30 EURO $1.0569 YEN 120.12 | CONTENTS Arts in Review.......... D7 Business News. B2-4,7 CFO Journal................. B5 Global Finance............ C3 Health & Wellness D2-4 Heard on the Street C8 In the Markets........... C4 Opinion.................. A13-15 Sports.............................. D8 Technology................... B6 U.S. News................. A2-6 Weather Watch........ B8 World News.......... A8-11 s Copyright 2015 Dow Jones & Company. All Rights Reserved > What’s News Sen. Rubio launched his campaign for the presidential nomination, casting himself as able to unite tea-party and establishment Republicans. A1 Russia lifted its ban on the delivery of a powerful missile air-defense system to Iran, stoking sharp criticism from the U.S. and Israel. A1 Four ex-Blackwater guards were handed long jail sentences for a 2007 Baghdad shooting that left 17 Iraqis dead. A4 The former chief of China’s biggest oil firm was tried on brib- ery charges. Prosecutors alleged ties to the ex-security czar. A8 A white reserve deputy in Oklahoma was charged with manslaughter for killing a black man after apparently confusing his revolver and stun gun. A2 The Interior Department proposed regulations aimed at preventing explosions at offshore drilling rigs. A2 A Georgia judge gave 10 ed- ucators convicted in a cheat- ing scandal a final chance to negotiate sentencing deals. A2 South Korea dismissed a U.S. claim that North Korea can launch a nuclear weapon that could threaten the U.S. A8 The FDA warned consumers not to use a muscle-growth supplement that it said has been linked to liver damage. A6 Sudan’s presidential vote began amid a boycott and crackdown on media. A10 Died: Günter Grass, 87, No- bel Prize-winning writer. A9 S ome European banks have been forced to pay money to borrowers, one of many challenges caused by negative interest rates. A1 P&G appears to be laying the groundwork for CEO Lafley to step down as soon as this summer. Veteran David Taylor is expected to succeed him. B1 Citigroup CEO Corbat shuffled top management, appointing a clear No. 2 and naming a rising star to head the bank’s consumer unit. C1 GE is losing a rich source of tax breaks in shedding its banking business. The com- pany’s effective tax rate could double to 20% or more. B1 The U.S. budget gap wid- ened slightly in the first half of fiscal 2015, ending a streak of sustained declines. A2 Boeing and Lockheed plan a new rocket with reusable engines, part of an effort to counter rival SpaceX. B2 U.S. stocks edged lower in light trading ahead of earn- ings reports. The Dow eased 80.61 points to 17977. 04. C4 Large pension plans hold more bonds than stocks for the first time in over a de- cade, driving down yields. B1 Former Massachusetts Gov. Patrick has joined Bain Capital to run a new unit. C3 Avon postponed an inves- tor meeting where it was to outline plans to turn around the struggling company. B2 Amazon and HarperCollins reached agreement on a pact for print and digital titles. B4 Business & Finance World-Wide OPINION | A13, A15 The 150th Anniversary of Lincoln’s Death James L. Swanson and Michael F. Bishop on a president’s leadership. William McGurn: Stealing Lincoln’s core beliefs. PERSONAL JOURNAL | D1 Better Chances For Preemies Parents care for their preterm newborns in intensive care, in a test that upends hospitals’ traditional approach. Tumbling interest rates in Eu- rope have put some banks in an inconceivable position: owing money on loans to borrowers. At least one Spanish bank, Bankinter SA, has been paying some customers interest on mort- gages by deducting that amount from the principal the borrower owes. The problem is just one of many challenges caused by inter- est rates falling below zero, By Patricia Kowsmann in Lisbon and Jeannette Neumann in Madrid MIDEAST’S CHRISTIANS TRAPPED BY EXTREMISTS Under attack and with few options, many forge alliances with former foes The Kremlin lifted its self-im- posed ban on the delivery of a powerful missile air-defense sys- tem to Iran on Monday, stoking sharp criticism from the White House and Israel and casting fresh doubt on the international effort to curb Tehran’s nuclear program. U.S. lawmakers seized on Moscow’s announcement Mon- day to warn Russia was among a host of foreign countries using the prospect of a nuclear deal to begin seeking out lucrative busi- ness deals that could bolster Iran’s military and economy. Any delivery of an air-defense system would complicate air- strikes on Iranian nuclear facili- ties by Israel or the U.S. should the diplomatic track fail. The U.S. Senate is set to vote this week on legislation that would provide Congress with the power to approve, amend or kill any agreement that seeks to curb Iran’s nuclear program in exchange for a lifting of interna- tional sanctions. Supporters of the bill, Repub- lican and Democrat, said Russia’s lifting of its ban on the S-300 surface-to-air missile system could be just the beginning of countries testing the sanctions regime and a United Nations arms embargo on Iran. “Before a final nuclear deal is even reached, [Russian Presi- Please see RUSSIA page A11 By Paul Sonne in Moscow and Jay Solomon in Washington MIAMI—Florida Sen. Marco Rubio launched his campaign for the Republican presidential nom- ination on Monday, seeking to position himself as a next-gener- ation leader who can bridge the divide between the tea party and establishment wings of the GOP. BY PATRICK OCONNOR Citing his roots as the son of Cuban immigrants, Mr. Rubio, 43 years old, is presenting himself to Republican primary voters as the candidate best-equipped to convince the country that con- servative ideas will boost lower- and middle-income Americans struggling to get a foothold in the quickly evolving economy. In a primary bound to draw more than a dozen candidates, Mr. Rubio stands out for his po- tential to draw voters from many segments of the party, someone who can unite the tea-party ac- tivists who helped elect him to the Senate and a party establish- ment that groomed him before and after that race. His candidacy will test Repub- licans’ appetite to nominate an aspirational figure in the mold of President Barack Obama, a rela- tively new face in the party look- ing to leapfrog other likely can- didates who boast more experience, among them his one- time ally, former Florida Gov. Jeb Bush. Mr. Rubio has become a pro- lific fundraiser, raking in more than $30.5 million since 2009, according to the nonpartisan Center for Responsive Politics, which suggests he can bring in the sums needed to last through what is expected to be a long nominating process. While he doesn’t have the same deep pool of large-dollar donors that Mr. Bush has already locked up, Mr. Rubio’s early financial backers say he will have the money to compete, and his campaign plans to run a much leaner operation than those of his rivals. One of the youngest of the likely GOP candidates, Mr. Rubio is casting himself as the party’s Please see RUBIO page A4 Rubio Enters Crowded Field New GOP candidate hopes to leapfrog more experienced rivals including former ally Bush known as a negative interest rate. All over Europe, banks are being compelled to rebuild computer programs, update legal docu- ments and redo spreadsheets to account for negative rates. Interest rates have been falling sharply, in some cases into nega- tive territory, since the European Central Bank last year introduced measures meant to spur the econ- omy in the eurozone, including cutting its own deposit rate. The ECB in March also launched a Please see BANKS page A12 In Odd European Twist, Banks Owe Borrowers Inside Gerald F. Seib: Three questions for gauging Iran nuclear deal... A4 Heard on the Street: European bond market defies logic ......... C8 ***** TUESDAY, APRIL 14, 2015 ~ VOL. CCLXV NO. 86 WSJ.com HHHH $3.00 Stepping away is easier with someone showing you the steps. Wealth management asset management asset servicing When it comes to succession planning, it’s never too soon. Northern Trust has the insights you need to make a smooth transition. Take the first step, call 866-803-5857 or visit at northerntrust.com/business Advertisement Composite YELLOW MAGENTA CYAN BLACK P2JW104000-5-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 P2JW104000-5-A00100-1--------XA

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Page 1: 2015 04 14 cmyk NA 04 - The Wall Street Journalonline.wsj.com/public/resources/documents/pageone041415.pdf · light trading ahead of earn-ingsreports. TheDow eased 80.61pointsto17977

CM Y K Composite

RussiaLifts BanOn ArmsTo Iran

but it is a choice “between thebitter and more bitter.”

Here and throughout theMiddle East, many Christians,under attack and without theprotection of functioningstates, face difficult choicesamid the region’s roiling sec-tarian conflicts.

Some are taking sides, oth-ers are taking up arms. In Iraqand Syria, for example, Chris-tians fight alongside Kurdsagainst Islamic State, eventhough some Christians accusethe Kurds of seeking to one dayincorporate them and theirland into Kurdish-controlledterritories.

While both Christians andMuslims suffer from the vio-lent extremism engulfing the

region, the stakes and consequences differ, saidthe Rev. Fadi Daou, a Lebanese Maronite Catho-lic priest and professor of Christian theology.

In Lebanon and Iraq, Shiite Muslims rely onPlease see MIDEAST page A12

AL-QAA, Lebanon—Threedecades ago, plainclothes Syr-ian agents went door to doorin this border village seekingout young Christian men, whowere abducted and killed in anotorious chapter of Lebanon’s15-year civil war.

The village’s nearly 2,000Christians now find themselvessiding with the same Syrian re-gime they blame for whatmany call the 1978 massacre.

That is because a few milesaway, hundreds of Islamist ex-tremists tied to al Qaeda and Is-lamic State stalk the porous bor-der region separating Lebanonand Syria. Standing between themilitants and the village are Leb-anese troops aided by the Iran-backed LebaneseShiite militia Hezbollah, whose men are also fight-ing for Syrian President Bashar al-Assad.

“Yes, I prefer the Syrian regime over these ter-rorist groups,” a 45-year-old Al-Qaa resident said,

BY SAM DAGHERLeaving LebanonPercentage of Lebanon'spopulation that is Christian

THEWALL STREET JOURNAL.Source: World Christian Database

80

0

20

40

60

%

1900 ’50 2000

201534.2%

Federal trademark officials inAlexandria, Va., recently receivedan unusual package: a hand-deliv-ered parcel containing vials of aclear liquid that smelled of or-anges.

The sender wasn’t a crank. Itwas a corporate trademark lawyerrepresenting Flotek IndustriesInc., a Texas producer of hydrau-lic-fracturing fluids used to ex-tract oil and gas from rocks deepin the earth.

The little bottles in the boxwere samples of a branding brain-storm that might be called eau de

BY JACOB GERSHMAN

Companies Say Trademarks for Scents Make Sensei i i

Others sniff at notion that smells deserve protected status; eau de fracking

fracking: a specially de-veloped scent that issupposed to makeFlotek’s product smelllike a glass of OJ.Flotek says its custom-ers have come to asso-ciate the orange scentwith its line of frackingchemicals and wantsthe U.S. Patent andTrademark Office toregister it as a trademark.

Flotek lawyer Douglas Wolfsaid it was wiser to deliver the ap-plication by messenger than sendit in the U.S. mail. “You can imag-ine the security concerns with

three vials of liquid in abox,” he said.

Flotek is one of asmall number of com-panies trying to trade-mark their efforts tograb customers by thenose. A U.S. ukulelecompany won trade-mark protection for ascent that—accordingto its application—

lends its little stringed instru-ments a distinctive piña coladaaroma.

Last fall, Verizon Wireless, thenation’s largest cellphone carrier,

Please see SCENTS page A12

Sudan Votes Amid Boycott by Opposition Parties

MOSA

’ABEL

SHAMY/ASS

OCIAT

EDPR

ESS

BALLOT BOX: A woman casts her vote Monday on the first day of a presidential election expected to extend the rule of Omar al-Bashir. A10

DJIA 17977.04 g 80.61 0.4% NASDAQ 4988.25 g 0.2% NIKKEI 19905.46 g 0.01% STOXX600 413.63 À 0.2% 10-YR. TREAS. À 4/32 , yield 1.938% OIL $51.91 À $0.27 GOLD $1,199.30 g $5.30 EURO $1.0569 YEN 120.12

|

CONTENTSArts in Review.......... D7Business News. B2-4,7CFO Journal................. B5Global Finance............ C3Health & Wellness D2-4Heard on the Street C8

In the Markets........... C4Opinion.................. A13-15Sports.............................. D8Technology................... B6U.S. News................. A2-6Weather Watch........ B8World News.......... A8-11

s Copyright 2015 Dow Jones & Company.All Rights Reserved

>

What’sNews

Sen. Rubio launched hiscampaign for the presidentialnomination, casting himselfas able to unite tea-party andestablishment Republicans. A1 Russia lifted its ban onthe delivery of a powerfulmissile air-defense system toIran, stoking sharp criticismfrom the U.S. and Israel. A1Four ex-Blackwater guardswere handed long jail sentencesfor a 2007 Baghdad shootingthat left 17 Iraqis dead. A4The former chief of China’sbiggestoil firmwas triedonbrib-ery charges. Prosecutors allegedties to the ex-security czar.A8 A white reserve deputy inOklahoma was charged withmanslaughter for killing a blackman after apparently confusinghis revolver and stun gun. A2 The Interior Departmentproposed regulations aimedat preventing explosions atoffshore drilling rigs. A2A Georgia judge gave 10 ed-ucators convicted in a cheat-ing scandal a final chance tonegotiate sentencing deals. A2 South Korea dismissed aU.S. claim that North Koreacan launch a nuclear weaponthat could threaten the U.S. A8The FDAwarned consumersnot to use amuscle-growthsupplement that it said hasbeen linked to liver damage. A6 Sudan’s presidential votebegan amid a boycott andcrackdown on media. A10 Died: Günter Grass, 87, No-bel Prize-winning writer. A9

Some European bankshave been forced to pay

money to borrowers, one ofmany challenges caused bynegative interest rates. A1P&G appears to be layingthe groundwork for CEO Lafleyto step down as soon as thissummer. Veteran David Tayloris expected to succeed him. B1 Citigroup CEO Corbatshuffled top management,appointing a clear No. 2 andnaming a rising star to headthe bank’s consumer unit. C1 GE is losing a rich sourceof tax breaks in shedding itsbanking business. The com-pany’s effective tax rate coulddouble to 20% or more. B1 The U.S. budget gap wid-ened slightly in the first halfof fiscal 2015, ending a streakof sustained declines. A2 Boeing and Lockheed plana new rocket with reusableengines, part of an effort tocounter rival SpaceX. B2 U.S. stocks edged lower inlight trading ahead of earn-ings reports. The Dow eased80.61 points to 17977. 04. C4 Large pension plans holdmore bonds than stocks forthe first time in over a de-cade, driving down yields. B1 FormerMassachusettsGov. Patrick has joined BainCapital to run a new unit. C3 Avon postponed an inves-tor meeting where it was tooutline plans to turn aroundthe struggling company. B2Amazon and HarperCollinsreached agreement on a pactfor print and digital titles. B4

Business&Finance

World-Wide

OPINION | A13, A15

The 150th Anniversary of Lincoln’s Death

James L. Swanson and Michael F. Bishop on a president’sleadership. William McGurn: Stealing Lincoln’s core beliefs.

PERSONAL JOURNAL | D1

Better ChancesFor Preemies

Parents care for their pretermnewborns in intensive care, ina test that upends hospitals’

traditional approach.

Tumbling interest rates in Eu-rope have put some banks in aninconceivable position: owingmoney on loans to borrowers.

At least one Spanish bank,Bankinter SA, has been payingsome customers interest on mort-gages by deducting that amountfrom the principal the borrowerowes.

The problem is just one ofmany challenges caused by inter-est rates falling below zero,

By Patricia Kowsmannin Lisbon and JeannetteNeumann in Madrid

MIDEAST’S CHRISTIANSTRAPPED BY EXTREMISTSUnder attack and with few options, many forge alliances with former foes

The Kremlin lifted its self-im-posed ban on the delivery of apowerful missile air-defense sys-tem to Iran on Monday, stokingsharp criticism from the WhiteHouse and Israel and castingfresh doubt on the internationaleffort to curb Tehran’s nuclearprogram.

U.S. lawmakers seized onMoscow’s announcement Mon-day to warn Russia was among ahost of foreign countries usingthe prospect of a nuclear deal tobegin seeking out lucrative busi-ness deals that could bolsterIran’s military and economy.

Any delivery of an air-defensesystem would complicate air-strikes on Iranian nuclear facili-ties by Israel or the U.S. shouldthe diplomatic track fail.

The U.S. Senate is set to votethis week on legislation thatwould provide Congress with thepower to approve, amend or killany agreement that seeks tocurb Iran’s nuclear program inexchange for a lifting of interna-tional sanctions.

Supporters of the bill, Repub-lican and Democrat, said Russia’slifting of its ban on the S-300surface-to-air missile systemcould be just the beginning ofcountries testing the sanctionsregime and a United Nationsarms embargo on Iran.

“Before a final nuclear deal iseven reached, [Russian Presi-

Please see RUSSIA page A11

By Paul Sonnein Moscow andJay Solomonin Washington

MIAMI—Florida Sen. MarcoRubio launched his campaign forthe Republican presidential nom-ination on Monday, seeking toposition himself as a next-gener-ation leader who can bridge thedivide between the tea party andestablishment wings of the GOP.

BY PATRICK O’CONNOR

Citing his roots as the son ofCuban immigrants, Mr. Rubio, 43years old, is presenting himselfto Republican primary voters asthe candidate best-equipped toconvince the country that con-servative ideas will boost lower-and middle-income Americansstruggling to get a foothold inthe quickly evolving economy.

In a primary bound to drawmore than a dozen candidates,Mr. Rubio stands out for his po-tential to draw voters from manysegments of the party, someonewho can unite the tea-party ac-tivists who helped elect him to

the Senate and a party establish-ment that groomed him beforeand after that race.

His candidacy will test Repub-licans’ appetite to nominate anaspirational figure in the mold ofPresident Barack Obama, a rela-tively new face in the party look-ing to leapfrog other likely can-didates who boast moreexperience, among them his one-time ally, former Florida Gov. JebBush.

Mr. Rubio has become a pro-lific fundraiser, raking in morethan $30.5 million since 2009,according to the nonpartisan

Center for Responsive Politics,which suggests he can bring inthe sums needed to last throughwhat is expected to be a longnominating process. While hedoesn’t have the same deep poolof large-dollar donors that Mr.Bush has already locked up, Mr.Rubio’s early financial backerssay he will have the money tocompete, and his campaign plansto run a much leaner operationthan those of his rivals.

One of the youngest of thelikely GOP candidates, Mr. Rubiois casting himself as the party’s

Please see RUBIO page A4

Rubio Enters Crowded FieldNewGOPcandidatehopes to leapfrogmoreexperienced rivalsincluding former allyBush

known as a negative interest rate.All over Europe, banks are beingcompelled to rebuild computerprograms, update legal docu-ments and redo spreadsheets toaccount for negative rates.

Interest rates have been fallingsharply, in some cases into nega-tive territory, since the EuropeanCentral Bank last year introducedmeasures meant to spur the econ-omy in the eurozone, includingcutting its own deposit rate. TheECB in March also launched a

Please see BANKS page A12

In Odd European Twist,Banks Owe Borrowers

Inside

Gerald F. Seib: Three questionsfor gauging Iran nuclear deal... A4

Heard on the Street: Europeanbond market defies logic......... C8

* * * * * TUESDAY, APRIL 14, 2015 ~ VOL. CCLXV NO. 86 WSJ.com HHHH $3 .00

Stepping away is easier withsomeone showing you the steps.

Wealth managementasset management

asset servicingWhen it comes to succession planning, it’s never too soon. Northern Trust has the insights you need tomake a smooth transition. Take the first step, call 866-803-5857or visit at northerntrust.com/business

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P2JW104000-5-A00100-1--------XA