YELLOW

* * * * * * FRIDAY, MARCH 20, 2015 ~ VOL. CCLXV NO. 65 WSJ.com HHHH $3 .00

Netanyahu ReversesOn Statehood Again

CLINTON CHARITYTAPS FOREIGN FRIENDSFoundation agreed not to seek donations from other governments,but cash kept flowing from individuals with connections to them

DJIA 17959.03 g 117.16 0.65% NASDAQ 4992.38 À 0.2% NIKKEI 19476.56 g 0.35% STOXX600 400.83 À 0.55% 10-YR. TREAS. g 9/32 , yield 1.977% OIL $43.96 g $0.70 GOLD $1,169.10 À $17.70 EURO $1.0661 YEN 120.76

|

CONTENTSBusiness News.. B2,3,5Global Finance............ C3Heard on the Street C8In the Markets........... C4Movies......................... D3,5Music ........................... D2,4

Opinion................... A11-13Sports.............................. D8Technology................... B4Theater....................... D6,7U.S. News................. A2-5Weather Watch........ B5World News........... A6-8

s Copyright 2015 Dow Jones & Company.All Rights Reserved

What’sNews

Israel’s Netanyahu re-versed himself for the sec-ond time in a week on sup-port for a Palestinian state,saying he would back oneunder the right conditions. A1 Islamic State claimed re-sponsibility for the museumattack in Tunisia’s capital andwarned of more bloodshed. A6 Iraq’s offensive to liberateTikrit from Islamic State hasslowed as the battle nearsthe end of its third week. A7 The timing of lifting sanc-tions on Iran has emerged asa stumbling block to a deal onTehran’s nuclear program. A6 Germany’s Merkel inter-vened directly in a deepeningrift between Greece and itsinternational creditors. A8EU leaders agreed on a planthat would likely keep the bloc’seconomic sanctions on Russiain place until year’s end. A8 A fight over abortion lan-guage in a bill aimed at com-bating human trafficking hasground the Senate to a halt. A4House leaders rolled outlegislation to permanently fixa formula for calculatingMedi-care payments to doctors. A4 California Gov. Brown andtop state lawmakers calledfor $1 billion in emergencydrought spending. A3 Yemeni forces loyal toformer President Salehclashed with governmenttroops at Aden’s airport. A6 David Bird, a Wall StreetJournal reporter missing formore than a year, was founddead in New Jersey. A2

Key FTC staff found in2012 that Google used

anticompetitive tactics andabused its monopoly power, aharsher analysis of its businessthan was previously known. A1 The dollar rebounded froma sharp drop against the euro,capping two days of gyrationsfueled by sudden uncertaintyover thepathof interest rates.A1 The Dow retreated afterWednesday’s jump, losing117.16 points to 17959.03. C4 Lafarge hammered out newterms in its $44 billion mergeraccord with Holcim to form acement-industry giant. B1 The Obama administrationon Friday is expected to is-sue long-awaited regulationsfor hydraulic fracturing. B2 HBO, Showtime and Sonyseek special treatment online,tapping into a gray area inthe “net neutrality” debate. B1 BNY Mellon agreed to pay$714 million to resolve allega-tions it defrauded pension fundson currency transactions. C1 Amazon was cleared totest drones outdoors, a smallvictory in its effort to developunmanned delivery vehicles. B2 A probe into whether BSGResources paid bribes for min-ing rights in Guinea could yieldindictments in the U.S. B1 Tesla committed to soft-ware upgrades that include al-lowing its Model S electric carsto operate autonomously. B3 Lilly struck a deal withChina’s Innovent to co-developat least three cancer drugs. B3New York is asking car andother property-casualty insur-ers about pricing practices. C1

Business&Finance

World-Wide

WASHINGTON—Officials atthe Federal Trade Commissionconcluded in 2012 that GoogleInc. used anticompetitive tacticsand abused its monopoly powerin ways that harmed Internet us-ers and rivals, a far harsher anal-ysis of Google’s business thanwas previously known.

The report from the agency’sbureau of competition recom-mended the commission bring alawsuit challenging three Googlepractices. The move would havetriggered one of the highest-pro-file antitrust cases since the Jus-tice Department sued MicrosoftCorp. in the 1990s.

The 160-page critique, whichwas supposed to remain privatebut was inadvertently disclosedin an open-records request, con-cluded that Google’s “conducthas resulted—and will result—inreal harm to consumers and toinnovation in the online searchand advertising markets.”

The findings stand in contrastto the conclusion of the FTC’scommissioners, who voted unan-imously in early 2013 to end theinvestigation after Google agreedto some changes to its practices.

It is unusual for the commis-sioners to not take staff recom-mendations. But in this case,they were wrestling with com-peting recommendations, includ-ing a separate report from theagency’s economic bureau thatdidn’t favor legal action.

Then-Chairman Jon Leibowitzsaid in a written statement atthe time that Google’s voluntarychanges deliver “more relief forAmerican consumers faster thanany other option.”

Google General Counsel KentWalker said in a statementThursday that the FTC ultimately“agreed that there was no needto take action on how we rankand display search results.” He

Please see GOOGLE page A2

By BrodyMullins,Rolfe Winkler

and Brent Kendall

FTC StaffWantedTo SueGoogle

The dollar quickly reboundedThursday from its worst declineagainst the euro in six years,capping two days of wild gyra-tions that marked the return ofheightened volatility to currencymarkets that had been placid for

years and raising worries thatcrucial corners of the financialsystem, such as bonds, couldseize up.

The market’s agitation re-flected a sudden unexpected un-certainty about the path of in-terest rates in the U.S. and therest of the world. For months in-vestors have piled into bets thatthe dollar will rise against theeuro, Japanese yen and manyemerging-market currencies, an-ticipating the greenback willbenefit from the gatheringstrength of the U.S. economy and

efforts world-wide by other cen-tral banks to bolster domesticeconomic growth by reducing in-terest rates and otherwise eas-ing policy.

But investors were briefly un-nerved on Wednesday when theFederal Reserve’s policy state-ment made clear that officialsaren’t set on a short-term inter-est-rate increase in June, asmany had assumed. A number oftrading firms struggled to exitfrom positions that benefit froma rising dollar, adding to anxietyand fueling further price swings.Within hours, however, the eurohad retraced much of its gains asinvestors appeared to focus onthe longer-term trends in theglobal economy, which still seemto favor the dollar.

On Thursday, the U.S. cur-rency rose 1.9% against the euro,recovering much of the losses itsuffered a day earlier followingrelease of the Fed statement.

The 10-year Treasury yieldrose to 1.977% Thursday, reflect-ing falling prices, a day after theyield posted its largest declinesince October.

Volatility in currency marketsPlease see DOLLAR page A5

By Ira Iosebashvili andJames Ramagein New York

and Chiara Albanesein London

Currencies GoOnWild Ride,Fueled by FedGyrations show returnof volatility to financialmarkets and raiseworries on liquidity

TEL AVIV—Israeli Prime Min-ister Benjamin Netanyahu re-versed himself for the secondtime in a week on support for aPalestinian state and said hewould back it under the rightconditions, a turnaround that theU.S. and Palestinians dismissedas unconvincing.

On Monday, the day beforeparliamentary elections, the Is-raeli leader said he was in dan-ger of losing and made a hardshift to the right—abruptly re-versing his 2009 declaration ofsupport for a two-state solutionto the decades old conflict withthe Palestinians. His victory onelection day, which defied pre-

election polls, was widely attrib-uted to the late shift in strategy.

The U.S. responded Wednes-day by upending decades ofAmerican policy when it leftopen the possibility that it mightstop using its veto to shield Is-rael in the United Nations.

U.S. officials said Thursdaythat Mr. Netanyahu’s sharp de-parture on Monday from hislong-held public position on thetwo-state plan made it difficultfor President Barack Obama’s ad-ministration to accept his clarifi-cation on Thursday.

“If he had consistently statedthat he remained in favor of atwo-state solution, we’d be hav-ing a different conversation,”State Department spokeswomanJen Psaki said.

In American television inter-views on Thursday, Mr. Netan-yahu claimed that what he saidMonday wasn’t a retraction ofhis commitment in 2009, main-taining that the conditions to setup such a state are just notachievable today.

Dani Dayan, a prominentleader of West Bank settlers,called Mr. Netanyahu’s recentstatements “disorienting and zig-zagging.” He said he was amongthose who switched his alle-giance from nationalist partyJewish Home to Mr. Netanyahu’sLikud during the final part of therace.

But Mr. Dayan said he under-stood that Mr. Netanyahu didwhat was necessary in a tightrace to ensure he got votes andprevailed over the left, even if he

Please see ISRAEL page A6

BY NICHOLAS CASEYAND CAROL E. LEE

A Buzzer Beater, Then Madness

Hasan

Jamali/AssociatedPress

When Sagi Kfir meets peopleand tells them he is a “spaceattorney,” they usually think hehas a strange way of saying heis in real estate.

He says that when he addsthat he is chief counsel of anasteroid mining company, peo-ple start telling “Star Wars”jokes.

One common question: Doyou represent Chewbacca orHan Solo?

“I’m always the most inter-esting lawyer at a cocktailparty,” says Mr. Kfir, 42 yearsold.

Jokes aside, spacelaw is a big deal. Arange of commercialspace businesses in-cluding space hotelstartups, satelliteproviders and compa-nies focused on har-vesting resourcesfrom asteroids, havematured to the pointthat they require le-gal services. Mean-while, law schools areopening new programs and in-ternational symposia are beingheld.

As the first chief counsel ofa space mining company, Mr.

Kfir is at the fore-front of this odd off-shoot of aerospacelaw. From his officein the modified two-car garage of hishouse in San Diego,Mr. Kfir spends muchof his time mullingsome rather other-worldly legal issues.

For example, whathappens if one space-mining craft acciden-

tally sends a rock flying intoanother spacecraft? Who paysfor the damage? Or if a com-pany successfully mines an as-

Please see SPACE page A10

BY BRADLEY HOPE

If a Martian Wrecks Your Rocket Ship, Who Is Liable?i i i

Attorneys navigate final legal frontier; ‘spacecraft tort’

Sagi Kfir

IT’S GOOD: R.J. Hunter sinks a three-pointer with less than three secondsleft to lift 14-seed Georgia State over three-seed Baylor, launching araucous celebration in the first full day of the NCAA tournament. D8

The Clinton Foundation swore off donationsfrom foreign governments when Hillary Clintonwas secretary of state. That didn’t stop thefoundation from raising millions of dollars fromforeigners with connections to their home gov-ernments, a review of foundation disclosuresshows.

Some donors have direct ties to foreign gov-ernments. One is a member of the Saudi royalfamily. Another is a Ukrainian oligarch and for-mer parliamentarian. Others are individualswith close connections to foreign governmentsthat stem from their business activities. Theirprofessed policy interests range from humanrights to U.S.-Cuba relations.

All told, more than a dozen foreign individu-als and their foundations and companies were

large donors to the Clinton Foundation in theyears after Mrs. Clinton became secretary ofstate in 2009, collectively giving between $34million and $68 million, foundation recordsshow. Some donors also provided funding di-rectly to charitable projects sponsored by thefoundation, valued by the organization at $60million.

After Mrs. Clinton left the State Departmentin 2013, the foundation resumed accepting do-nations from foreign governments. Just aftershe stepped down as secretary of state, it re-ceived a large donation from a conglomeraterun by a member of China’s National People’sCongress.

In response to questions about foreign dona-tions, a foundation official said the individualshave given to a host of other major philanthro-

Please see CLINTON page A10

BY JAMES V. GRIMALDI AND REBECCA BALLHAUS

Iraqi Fighting Stalls Around Tikrit

GROUNDED: Without U.S. airstrikes, Iraqi forces have been unable topush Islamic State out of the city after three weeks of fighting. A U.S.aircraft on the USS Carl Vinson in the Persian Gulf Thursday. A7

>

The $100 MillionSpec HouseMANSION | M1

The Wave ThatSwept ThroughThe Art World

ARENA | D1

Prime Minister Benjamin Netanyahuspeaks following his victory.

KevinC.

Cox/Getty

Images

Thom

asCo

ex/A

genceFrance-Presse/Getty

Images

Pushing and pulling on ratesriddle..................................................... C1

CM Y K CompositeCompositeMAGENTA CYAN BLACK

P2JW079000-6-A00100-1--------XA CL,CN,CX,DL,DM,DX,EE,EU,FL,HO,KC,MW,NC,NE,NY,PH,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

P2JW079000-6-A00100-1--------XA