P2JW020000-5-A00100-1--------XA CMYK Composite 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 Advertisement 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 TUESDAY, JANUARY 20, 2015 ~ VOL. CCLXV NO. 15 ***** DJIA 17511.57 Closed NASDAQ 4634.38 Closed i STOXX 600 353.18 À 0.2% 10-YR. TREAS. Closed yield 1.815% OIL $48.69 Closed GOLD $1,276.90 Closed i Business & Finance T he Fed is staying on track to start raising short-term rates later this year, even as the ECB is poised to launch a stimulus program. A1, A8 n China’s growth slowed to 7.4% last year, its weakest rate in almost a quarter century, after decades of expansion that buoyed the global economy. A1 n Shanghai shares slid 7.7% Monday, the worst drop in over six years, on a move to curb margin trading. Stocks were up in early Tuesday trading. A9 n The IMF downgraded its outlook for more than a dozen of the world’s largest economies, including China. A8 n BP plans to argue that a court should weigh oil prices in deciding how much it must pay in fines for the 2010 Gulf of Mexico spill. B1, B7 n Many money managers see stocks recovering this year but worry about earnings and global growth. C1 i Obama Reignites Tax Fight i World-Wide n Obama is set to outline a plan for tax increases and higher government spending in his State of the Union, reigniting partisan debates. A1 WASHINGTON—President Barack Obama’s plan for billions of dollars in tax increases and higher government spending, to be outlined in Tuesday’s State of the Union address, is reigniting familiar partisan debates about overhauling the tax code and how to best aid the middle class. The White House views Mr. Obama’s proposals as the start of a broad discussion with the new Republican Congress over a rewrite of the tax code that includes not just corporate but individual taxation, as GOP lawmakers have wanted. But in By Carol E. Lee, John D. McKinnon and Kristina Peterson calling for tax increases, the White House may have complicated negotiations on an issue that both parties recently cited as ripe for compromise. “This is just another poke in the eye at Republicans, rather than showing a willingness to cooperate,” said Rep. Charles Boustany (R., La.), a member of the tax-writing Ways and Means Committee. “If the president Inside n More Americans are upbeat about the economy but remain frustrated about political leadership, a new Wall Street Journal/NBC News poll found. A4 n Iran said an Israeli airstrike in Syria killed a Revolutionary Guards general and six Hezbollah fighters. A6 Argentine Who Accused Leader Dies Wide Appeal Lifts ‘American Sniper’ n Saudi Arabia’s flogging of a writer convicted of insulting Islam has renewed debate over corporal punishment. A6 A prosecutor who said President Kirchner helped quash a probe into the bombing of a Jewish center was found dead from a gunshot wound. Film based on the memoir of an Iraq War veteran sets openingweekend record, boosted by audience of cultural conservatives. n Nuclear talks between Iran and six powers will resume next month, the EU said. A7 CONTENTS Arts in Review.......... D5 CFO Journal................. B6 Corp. News....... B2,3,5,7 Global Finance............ C3 Health & Wellness D2-4 Heard on the Street C8 Media............................... B4 Moving the Market C2 Opinion................... A11-13 Sports.............................. D6 U.S. News................. A2-4 Weather Watch........ B8 World News........... A6-9 > s Copyright 2015 Dow Jones & Company. All Rights Reserved By Mark Magnier, Lingling Wei and Ian Talley China, which reported economic growth of 7.7% in 2013, has reverberated around the world, sending prices for commodities tumbling and weakening an already soft global economy. China’s economy grew 7.3% in the fourth quarter from a year earlier, the National Bureau of Statistics said, buttressed by targeted moves to ease borrowing. But it continued to face a hous- Composite n Power outages rolled through Brazil as drought hurt hydroelectric generation. A7 China Economic Growth Is Slowest in Decades BEIJING—China’s economic growth slowed to 7.4% in 2014, downshifting to a level not seen in a quarter century and firmly marking the end of a high-growth heyday that buoyed global demand for everything from iron ore to designer handbags. The slipping momentum in ECB nears crucial test............... A8 IMF cuts growth forecasts..... A8 Mounting worries hit stocks.. C1 Ltd. that will give it half ownership of five entertainment chanKAGGALAHALLI, India—On a nels around the country that Percentage of revenue from visit to India last fall, Viacom specialize in low-budget, localinternational operations, 2013 Inc. executive Bob Bakish rode language soaps. Until recently, such regional 30 miles south of Bangalore, Discovery Communications foreign fare wouldn’t have been past rice paddies and millet 45% on the menu of a U.S. media confarms, to a television-production Time Warner glomerate. But after years of goset in this village of 1,100. 29 He came to see the filming of go growth, the U.S. pay-TV marViacom the South Indian soap opera ket is saturated, and consumers “Lakshmi Baaramma,” a Cinderhave begun rebelling over high 26 costs by dropping cable and satella tale about a village girl who Disney marries a wealthy businessman ellite connections altogether. In24 vesting in fast-growing foreign to escape a life of oppression. TV markets—however unfamiliar That day they were shooting a Source: Macquarie The Wall Street Journal wedding scene in which the the terrain or content—is lookbride and groom play a ceremoing more attractive. Viacom’s India initiative is part of a broader nial game, racing to fish their rings out of a pot of move to step up channel launches, acquisitions milk. Soon, that show will be a Viacom production. and investments in countries ranging from the The U.S. media giant, owner of TV networks in- U.K. to Brazil to Spain. Competitors such as Discluding MTV, Comedy Central and Nickelodeon, is covery Communications Inc., 21st Century Fox and Please turn to page A10 completing a deal with India’s Reliance Industries BY AMOL SHARMA MARKETPLACE | B1 n Indonesian investigators said they have found no signs of terrorism or pilot suicide in the AirAsia crash. A7 Gerald Seib: How Obama might address state of his party...... A4 Media Giants Look Far Afield For New TV Audience WORLD NEWS | A6 n European authorities probing terror networks are hampered by porous borders. A7 n German politicians criticized a decision by police to ban an anti-Islam march. A7 n Protesters in Chechnya denounced Charlie Hebdo’s caricatures of Muhammad. A7 tives. The plan would increase taxes on investments held by high-income households by boosting top capital-gains tax rates and imposing capital-gains tax on many inherited assets. Republicans, who control the House and Senate, have balked at the president’s plan, calling it the type of redistribution of wealth that Mr. Obama has long known Republicans oppose. But like Mr. Please turn to page A4 Federal Reserve officials are staying on track to start raising short-term interest rates later this year, even though long-term rates are going in the other direction amid new investor worries about weak global growth, falling oil prices and slowing consumer price inflation. The Fed’s stance, as it prepares for a policy meeting later this month, is striking because European Central Bank officials are poised to take the opposite approach later this week. The ECB is nearing a decision on whether to launch a controversial stimulus program known as quantitative easing on Thursday. It is widely expected to announce it will buy hundreds of billions or more of euro-denominated government bonds in an effort to beat back Japan-style deflation. The world hasn’t seen an economic divergence like this since the mid-1990s, when growth in the U.S., Japan and Europe went in different directions. Back then, Japan was mired in a post-realestate bubble downturn, Europe was grappling with the consequences of the collapse of the Soviet Union and the U.S. was enjoying a burgeoning technology boom. The looming moves have important implications for markets and growth. Investors have already been driving up the value of the U.S. dollar in anticipation of the moves and driving down Please turn to page A8 FOREIGN CHANNELS n The Argentine prosecutor who accused President Kirchner of working with Iran to cover up a 1994 terror bombing was found dead. A6 n Yemeni forces clashed with militants who are seeking a greater say in a new constitution, leaving nine dead. A6 were really interested in tax reform, rather than making political statements, he would have approached Congress and members of the Ways and Means committee in thoughtful ways.” Mr. Obama surprised Republican leaders when the White House announced over the weekend that he will propose some $320 billion in tax increases over 10 years that are targeted at high-income Americans, and to use that money to pay for $235 billion in tax breaks mostly for moderate-income workers, plus other yet-unspecified initia- ing glut, soaring debt and overcapacity in many industries, factors likely to erode growth in 2015. Beijing had said it expected “about” 7.5% growth in 2014. The chief of the statistics bureau said Tuesday the rate was within that range. Chinese stocks rose on the news, a day after their largest one-day drop in more than six years following a crackdown on margin trading. While 7% growth would be the envy of most economies, Beijing says at least this level is needed to create enough jobs for China’s huge population. The Communist Party sees social stability as an essential component in maintaining its grip on power. The results follow decades of Please turn to page A9 Shanghai market plunges........ A9 Overseas Play In Rome, Fiddling Mayor Makes Locals Burn i i i Crackdown on Rules Enrages Restaurateurs, Artists; Banning Scooters BY LIAM MOLONEY ROME—For a decade, Claudia Pizzuti, owner of Tre Scalini restaurant in Rome’s Piazza Navona, dished out pasta to tourists at some 35 outdoor tables, serving up the languorous meals and stunning views of the Baroque square that are the stuff of once-in-a-lifetime Roman holidays. The fact that the tables— which spilled into the piazza— violated Ms. Pizzuti’s city license was of little concern to the restaurateur. That was until Rome Mayor Ignazio Marino declared war on the rampant violation of rules governing outdoor tables that had spread willy-nilly over time. “We had to do away with the insane invasion of the tables,” said Mr. Marino. “Do we care about the beauty and architecture of our piazzas, or not?” Last summer, City Hall sent police to enforce the rules, compelling most restaurateurs to P2JW020000-5-A00100-1--------XA n Two deal makers are launching an activist hedge fund with a collaborative approach to management. C3 n Ackman’s Pershing Square is hiring a veteran merger lawyer as vice chairman. C3 i ARMED RESISTANCE: Houthi militants, who want a greater say in the crafting of a new constitution, shouted slogans Monday during clashes with government forces near the presidential palace in San’a. The fighting, which left nine dead, subsided with a late-afternoon cease-fire. A6 GOP Pans State of the Union Proposal to Boost Inheritance, Capital Gains Levies n U.K. authorities closed an accounting probe into H-P’s $11 billion purchase of software company Autonomy. B1 YEN 117.57 BY JON HILSENRATH AND BRIAN BLACKSTONE Hani Ali/Xinhua/Zuma Press n Google is close to investing about $1 billion in SpaceX to support satellite-based Internet service, valuing the company at over $10 billion. B1 n The EU is weighing a tax on U.S. Internet firms such as Google in its effort at a single digital market in Europe. B3 EURO $1.1608 Fed Holds To Plan On Rates Despite Turmoil Deadly Clashes With Militants Leave Yemen on Edge What’s News i NIKKEI 17014.29 À 0.9% HHHH $3.00 WSJ.com slash the number of outdoor tables and put the remaining ones into the perimeter set out in their license. Authorities even took to painting green lines demarcating the allowed areas to reduce squabbling with inspectors. Today, patrons sit ear-to-jowl in a smaller clutch of outdoor tables at Ms. Pizzuti’s restaurant. But she still flaunts the ban on gas-fired patio heaters and, when Please turn to page A10 MAGENTA BLACK CYAN YELLOW
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