todayinmansion ahomeonthegreeninst.andrews...

YELLOW

* * * * * * FRIDAY, MAY 16, 2014 ~ VOL. CCLXIII NO. 114 WSJ.com HHHH $2 .00

DJIA 16446.81 g 167.16 1.0% NASDAQ 4069.29 g 0.8% NIKKEI 14298.21 g 0.7% STOXX600 338.50 g 0.9% 10-YR. TREAS. À 12/32 , yield 2.502% OIL $101.50 g $0.87 GOLD $1,293.50 g $12.20 EURO $1.3710 YEN 101.59

Dylan

Thom

asforT

heWallS

treetJ

ournalA Home on the Green in St. Andrews

TODAY IN MANSION

A Home on the Green in St. AndrewsARENA ATeen-Lit Star Goes to Hollywood

CONTENTSBooks.................................D2Corp. News................B2-3Global Finance.............C3Heard on Street..........C8In the Markets.............C4Mansion...................M1-18

Media.................................B4Opinion.....................A11-13Sports................................D8Technology.....................B5U.S. News...................A2-5Weather Watch..........B6World News.......A6-9,14

s Copyright 2014 Dow Jones & Company.All Rights Reserved

>

What’sNews

i i i

World-Widen Iran has been recruitingand training Afghan refugeesto fight in Syria, deployingthem to help the Assad regimeregain control from rebels. A1nKerry said he’s seen “rawdata” that indicate the Syrianregime has used chlorine inchemical-weapons attacksagainst rebels and civilians. A9nThe U.S. and Europe threat-ened Russia with sanctions if itundermines a Ukraine vote,but theWest was divided onhowmuch to pushMoscow. A7nHopes of rescuing some 100trapped Turkish coal minersall but vanished amid anger atthe government. The accidenthas killed at least 284. A6n Scientist said an analysisof the oldest genetically in-tact human skeleton in theNewWorld links early settlerswith Native Americans. A3nThe VA inspector generalsaid he had so far found no evi-dence that patients had dieddue to longwaits for care.A5n Nigeria’s army tried tocalm rebellious soldiers as itprepared for a mission to freekidnapped schoolgirls. A6n Anti-Chinese riots inVietnam left at least twodead. Beijing accused Hanoiof abetting the mobs. A8n Japan needs more free-dom of action in overseasconflicts, Abe said, citing theSouth China Sea standoff. A8n Brazil sent troops to aWorld Cup host city after po-lice went on strike. A14n A ferry sank in Bangla-desh, leaving at least 12 deadand nearly 100 missing. A8

i i i

Economic activity in theeuro zone grew at a weak

0.8% rate last quarter. U.S. datashowed the mixed economicbackdrop facing the Fed. A1U.S. consumer prices rose0.3% in April fromMarch, thefastest pace since last June, onhigher costs for staples. A2n The Dow slid 167.16 pointsto 16446.81, its biggest dropin five weeks, and bondprices surged as investors re-treated from riskier assets. C1nThe FCC voted 3-2 for an In-ternet proposal that could letbroadband providers chargecompanies for preferentialhandling ofWeb traffic. A1n The commission approvedrules that will govern a keywireless-spectrum auction. B4n Credit Suisse is expected topay almost $2.5 billion to set-tle allegations that it helpedAmericans evade taxes. C1n Blackstone agreed to payDeutsche Bank $1.7 billionfor the Cosmopolitan, a LasVegas hotel and casino. C1nWal-Mart posted its fifth-straight U.S. sales decline andwarned of more weakness.Quarterly profit fell 5%. B1nWal-Mart said it wouldn’toppose an increase in thefederal minimum wage. B2n Farmland values fell lastquarter in much of the Mid-west, the latest sign of aslump after a long boom. A2n GM recalled 2.7 million ve-hicles and said it would takea $200 million charge. B3n Pinterest said it raisedfunding that values the scrap-booking site at $5 billion. B4

Business&Finance

ASIA’S CROWDED SKIES

Cheap Rivals Imperil FutureOf Airline Stung by TragedyKUALA LUMPUR, Malaysia—In

its heyday, Malaysia Airlines wasthe toast of this steamy South-east Asian capital.

It flew far-flung routes fromArgentina to Croatia to South Af-rica, even though Malaysia was adeveloping country. Its $3.5 bil-lion home airport, opened in1998, was codesigned by a Japa-nese architect to look like a mod-ernist masterpiece in the jungle,with natural rain forest betweenterminals. Employees wore uni-forms designed by an Italian cou-turier. The airline regularlytopped rankings for cabin service.

“It was like ‘Catch Me If You Can,’ ” said retiredpilot Nik Huzlan, referring to the Leonardo DiCapriomovie that portrayed flying as glamorous in its ear-lier days. “Our friends thought we were so cool.”

Now, following the disappear-ance of Flight 370, Malaysia Air-lines finds itself locked in astruggle for survival.

The jet that vanished March 8has triggered an anguished andseemingly unending wait for rela-tives and friends of the 239 peo-ple aboard. For the airline itself, acollateral effect has been toworsen finances that were al-ready precarious, pressured by awave of low-cost competition.

Malaysia Airlines had a loss of1.17 billion ringgit, or $359 mil-lion, last year. On Thursday, it re-ported a 443 million ringgit lossfor this year’s first quarter, a fardeeper loss than the 279 millionringgit of a year earlier.

The outlook for the rest of2014 is grim, with passengers

canceling flights, weak new bookings and much ofthe company’s advertising pulled for a time. Whileinsured, the airline also faces uncertain costs from

PleaseturntopageA10

By James Hookway,MarkMagnierand Jeffrey Ng

Eastward ShiftShare of total world air traffic

The Wall Street Journal

Source: International Civil AviationOrganization

40

0

10

20

30

%

2007 ’08 ’09 ’10 ’11 ’12

Asia PacificNorth America

Europe

Other

On Bedrock Where Towers Fell, a New Place for Remembrance

FACING THE PAST: President Barack Obama and former New York Mayor Michael Bloomberg at the 9/11 Memorial Museum, opening this week.

KevinLamarqu

e/Re

uters

Five years after the financialcrisis ended, soft growth in Eu-rope, a stop-and-start U.S. recoveryand waning momentum in Chinahave policy makers groping forwhat to do next.

A spate of worrying economicdata Thursday shook stock andbondmarkets. Economic activity inthe 18-country euro zone expandedat a weak annual rate of 0.8% dur-

ing the first quarter, data releasedThursday showed. Excluding Ger-many, which grew at a robust 3.3%pace, the rest of the euro-areaeconomy contracted slightly dur-ing the quarter.

European Central Bank officialsare now moving toward enactingadditional low interest-rate poli-cies to prevent the region fromsliding into a lengthy period of eco-nomic stagnation, while the U.S.Federal Reserve guardedly tries towind down a bond-buying programmeant to revitalize economicgrowth.

Meantime, Chinese authorities

are trying to prod banks to lendmore to first-time home buyersshut out of their real-estate mar-ket. U.S. officials privately say theyexpect Chinese officials to act toboost their economy and supportbanks if growth slows severely,

Pleaseturntothenextpage

By Brian Blackstone,Jon Hilsenrath

and MarcusWalker

Global GrowthWorries ClimbPolicy Makers in Europe, U.S. and China Grapple With What Steps to Take Next

In a move that has sharply di-vided technology giants overhow to keep the Internet open,the Federal CommunicationsCommission voted Thursday toadvance rules that would letbroadband providers chargecompanies for preferential han-dling of Web traffic.

The proposal from FCC Chair-man Tom Wheeler would banbroadband providers from block-ing or slowing down websites,but leaves the door open forthem to strike deals with con-tent companies for preferentialtreatment, or fast lanes to cus-tomers. The Democrat-majorityFCC voted 3-2 along party linesto open the proposal to publiccomment for 120 days, with aneye toward voting on final ruleslater this year.

While broadband providerslike Comcast Corp., VerizonCommunications Inc. and AT&TInc. are firmly against strongerregulatory oversight of the in-dustry—a possibility that thecommission opened up for com-ment—they have indicated thatMr. Wheeler’s proposal as itstands is something they couldlive with.

That lines them up against In-ternet companies—includingGoogle Inc., Facebook Inc. andAmazon.com Inc., as well assmall startups—which are vehe-

PleaseturntopageA5

BY GAUTHAM NAGESHAND AMOL SHARMA

Web TollsProposalSets UpBattle

SEATTLE—The world’s toplatte artist this year could be anAmericano.

Fifteen seasoned baristasthrew theirmugs into thering thisspring for ashot at thefirst U.S. LatteArt Champion-ship, a contestfor the clear-est and mostcreative de-signs drawnwith steamedmilk poured over espresso. Thewinner, 24-year-old SimeonBricker, is the first person toqualify to be the U.S. representa-

tive at the world championshipsin Melbourne, Australia, beingheld this week.

In the corner of a cavernousconvention hall in Seattle lastmonth, latte championship hope-

fuls etched outtulips, a phoe-nix and whatone baristadescribed as a“rabid bat.”

Four judgeswielding clip-boards poredover submis-sions, markedcontestants’scores based

on consistency, speed and clarityof design, and compared the endproduct against photos baristassubmitted of their intended art.

“No smudges,” said the headjudge, Jose Cleofas Arreola, chiefexecutive of Tropical Moka, a Ti-juana coffee roaster. “It has tolook silky.”

The contest was on the un-dercard along with five othercoffee competitions at the an-nual convention of the SpecialtyCoffee Association of America.The main event, the U.S. BaristaChampionship, was set on alarger stage with a stadium forspectators.

The World Latte Champion-ship was first held in 2005,while the World Barista Contestis 14 years old. Both are orga-nized by World Coffee Events, anevent-management organizationthat was founded by Europeanand U.S. specialty-coffee trade

PleaseturntopageA10

BY LESLIE JOSEPHS

Heated Competition: U.S. Takes Shot at Latte Championshipi i i

Baristas Create Tulips, Phoenix, Rabid Bat; ‘A Fleeting Art’

Simeon Bricker’s latte art

Inflation picks up.......................... A2 Investors retreat from risk...... C1

Heard on the Street: FCCscreens telecom-deal hopes... C8

Iran Pays AfghansTo Fight for Syria

Iran has been recruiting thou-sands of Afghan refugees tofight in Syria, offering $500 amonth and Iranian residency tohelp the Assad regime beat backrebel forces, according to Af-ghans and Western officials.

The Iranian RevolutionaryGuard Corps, or IRGC, recruitsand trains Shiite militias to fightin Syria. Details of their recruit-ment efforts were posted thisweek on a blog focused on Af-ghan refugees in Iran and con-firmed by the office of GrandAyatollah Mohaghegh Kabuli, anAfghan religious leader in theIranian holy city of Qom. Amember of the IRGC also con-firmed the details.

“They [IRGC] find a connec-tion to the refugee communityand work on convincing ouryouth to go and fight in Syria,”said the office administrator ofAyatollah Kabuli, reached bytelephone in Qom. “They give

them everything from salary toresidency.” Tehran is also offer-ing them school registration fortheir children and charity cards.

Many Afghan young men havewritten to Ayatollah Kabuli toask whether fighting in Syriawas religiously sanctioned, hisoffice said. He responded only ifthey were defending Shiiteshrines. Lately, his office said hehas kept silent and not even at-tended funerals of Afghans killedin Syria.

On Thursday, a large funeralprocession attended by local andreligious officials was held in thenorthwestern city of Mashhad,near the Afghan border, for fourAfghan refugees killed in Syria.The coffins were shrouded ingreen cloth and the men’s pic-tures were pinned to the sides,according to reports on Shiite re-ligious websites and a news

PleaseturntopageA9

BY FARNAZ FASSIHI

Kerry cites ‘raw data’ that Syriaused chlorine in attacks........... A9

Veterans Affairs Chief Faces Grilling on Hill

HOSPITAL HOT SEAT: Secretary Eric Shinseki faced sharp questions fromboth sides of the aisle about long wait times at VA medical facilities. A5

Reuters

CM Y K CompositeCompositeMAGENTA CYAN BLACK

P2JW136000-6-A00100-10EFFB7178F CL,CX,DL,DM,DX,EE,EU,FL,HO,KC,MW,NC,NE,NY,PH,PN,RM,SA,SC,SL,SW,TU,WB,WEBG,BM,CC,CH,CK,CP,CT,DN,DR,FW,HL,HW,KS,LA,LG,LK,MI,ML,NM,PA,PI,PV,TD,TS,UT,WO

P2JW136000-6-A00100-10EFFB7178F