YELLOW

VOL. CCLXI NO. 98 * * * * * *

SATURDAY/SUNDAY, APRIL 27 - 28, 2013

HHHH $2 .00

WSJ.com

WEEKEND

TheCriminalMind

REVIEW

n The U.S. economy ex-panded in the first quarter,but forecasters expect therecovery to stay choppythrough the summer. A1n The Dow industrials rose1.1% on the week to close at14712.55, weathering mis-haps that brought confusionto trading sessions. B5n Federal prosecutors ac-cused Novartis’s U.S. unit ofproviding kickbacks and lav-ish dinners to doctors. B1n The Bank of Japan con-ceded it may taker longerthan two years for inflationto rise to around 2%. A7n A steel-prices slump hasset producers scrambling tomaintain prices and marketshare despite a U.S. glut. B1n Valeant is in talks to buyrival drug maker Actavis formore than $13 billion. B3n The CBOE’s technologystaff knew of software issuesin the hours before the largeoptions exchange’s three-hour outage Thursday. B1nMBIA has retained lawfirm Weil, Gotshal & Mangesas the insurer seeks to avoida possible state takeover of atroubled subsidiary. B2n Las Vegas Sands saidPricewaterhouseCoopers,the casino operator’s long-time auditor, resigned. B3

What’sNews

i i i

Business&Finance

World-Wide

i i i

CONTENTSBooks........................ C5-10Cooking....................... D5,6Corporate News. B1,3,4Heard on Street.......B14Ideas Market............... B5Design....................... D9,10

Opinion................... A11-13Sports............................ A14Stock Listings........... B11Style & Fashion.... D1-4Travel ........................... D7,8Weather Watch...... B13Wknd Investor.... B7-10

s Copyright 2013 Dow Jones & Company.All Rights Reserved

InsideNOONAN A13

Bush AffectionRises From

Obama Fatigue

n Arrests were ordered overBangladesh factory collapse.The death toll from the col-lapsed Rana Plaza complexrose to at least 306. Workerspulled 100 more survivorsfrom the rubble Friday. Tensof thousands of workersstaged sometimes-violentprotests. Arrest orders ofBangladesh factory owners,who wield huge politicalclout, are extremely rare. A6Workplace safety has longbeen a concern in a coun-try with hundreds of thou-sands of garment workers.n Obama said further proofAssad’s forces used chemicalweapons on civilians andrebels would change his “cal-culus” concerning possibleU.S. intervention in Syria. A8n Congress speedily ap-proved a bill to revoke thefurlough of U.S. air-trafficcontrollers, a deal expectedto end fliers’ long delays. A1n Fears of a public-safetythreat led federal agents toprematurely arrest a suspectin the ricin-letters case. A3n India-China tensions aremounting over their dis-puted Himalayan border andshared water resources. A7n A French billionaire willreturn to China a pair ofbronze statues that werepart of a 2009 Paris auctionthat angered Beijing. B4n Died: George Jones, 81,country singer with dozensof hits including “He StoppedLoving Her Today.” A5

The U.S. economy perked upin the first quarter after nearlystalling late last year, but federalbudget cuts and caution by busi-nesses highlighted mountingpressures that could weaken therecovery again in the comingmonths.

The nation’s gross domesticproduct, the broadest measure ofgoods and services producedacross the economy, expanded atan annualized 2.5% pace in thefirst three months of the year af-ter growing just 0.4% in thefourth quarter. Some of the re-bound came from temporary fac-tors, such as a rebuilding of in-ventories after a fourth-quarter

drawdown. The overall perform-ance suggests the economy con-tinues to expand at around 2% ayear on average, as it hasthroughout the recovery.

The recovery is likely to re-main choppy at least through thesummer, forecasters say, despitemonths of optimism tied to animproving housing market and astock market that reached newhighs during the quarter.

“We have an economy that’smoving along on a very shallowgrowth trajectory,” said StevenRicchiuto, an economist at Miz-uho Securities. “This economy isnot building any upside momen-tum.”

Friday’s report will ease pres-sure on the Federal Reserve to

slow its bond-buying later thisyear. Some officials have sug-gested the central bank couldpull off the accelerator if the ex-pansion strengthened.

Instead, the weak job gainslast month and decelerating ex-pansion taking shape for thecoming months could renewworries about a “spring swoon”similar to the slowdowns seen ineach of the last three years. Akey inflation measure trackedclosely by the Fed showed under-lying prices—those excludingvolatile food and energy costs—rising just 1.2% over the year andwell below the central bank’s 2%inflation target.

Nearly four years since the re-cession ended, the pace of ex-

pansion remains grindingly slow.Employers are hiring, but mod-estly. Business confidence re-mains lackluster.

“I’m a little bit more optimis-tic, but not over the top,” saidKevin Dunbar, CEO of the secu-rity firm Dunbar Armored Inc.“I was hoping for more growth.There’s still a little hesitance outthere.”

The Hunt Valley, Md., com-pany says the volume of cash ittransports for retailers andbanks is up about 3% over thepast year, a reflection of the

Pleaseturntothenextpage

BY SUDEEP REDDY

Economic Growth Stays SoftCutbacks in Federal Spending, Restraint From Businesses Keep Recovery From Gaining Momentum

In a deal expected to end longdelays for fliers soon, Congressspeedily approved a bill to re-voke the furlough of federal air-traffic controllers, tackling ashort-term political problem butcreating longer-term complica-tions for the White House.

The White House said Presi-dent Barack Obama would signthe measure that passed theHouse on Friday and the Senateon Thursday night. Doing somarked a setback for his strategyfor revoking the full set ofacross-the-board federal budgetcuts, known as the sequester,that for months he had arguedwould do the public and theeconomy harm.

Lawmakers said that fundingwould allow the Federal AviationAdministration to stop the fur-loughs of air-traffic controllersand also prevent the scheduledclosure of 149 control towersstaffed by contracted employeesat small airports.

A spokesman for the NationalAir Traffic Controllers Associa-tion, which represents the FAA’s15,000 civilian controllers, said itwasn’t yet clear how quickly theFAA could reset its controllerschedules to full staffing. TheFAA and Department of Trans-portation didn’t immediately re-spond to requests for comment.

PleaseturntopageA4

By Kristina Peterson,Peter Nicholasand Jack Nicas

AirDelaysGet SwiftPoliticalResponse

New Dishes Make WavesAt Belgium’s Seafood Showdown

i i i

With Fish in Decline, Creative Tides Rise;Squid-Ink Pudding Swims Upmarket

BRUSSELS—Amid images ofocean waves, Craig Harrison as-sessed his rivals in a tough mari-time competition that he has lostfor the past seven years. This time,contenders for the coveted Prixd’Elite included spreadable algae,toastable salmon-waffles andmussel-stew ice cream.

“It’s not aboutwinning,” said Mr.Harrison, salesmanager at Brit-ain’s Big Prawn Co.“But we’re alwaysthe bridesmaid…”

Big Prawn wasaiming to reel in anaward at the European SeafoodExposition, a three-day trade showthat floods local hotels and calls it-self “the world’s largest andmostprestigious seafood event.”

Many attendees at this DavyJones’s food locker were just

trawling for wholesale buyers oftheir aquatic fare. But a bold fewtested new culinary waters, try-ing to net the multibillion-dollarindustry’s top innovation award.

“These are the seafood Os-cars,” said Pierrick Clement, gen-eral manager of French foodcompany Britexa SARL, which

was betting ona promiscuoussea snail to winthe top prize.

But some-thing fishymarked thisyear’s contest:a lack of fish.Finalists in-cluded the seasnails, several

seaweed products and a range ofother dishes that never had finsor scales.

The maritime innovationshighlighted tension bubbling upat the show. With demand for

PleaseturntopageA4

BY FRANCES ROBINSON

Black pudding with squid ink

OUT OF THE RUBBLE: Scores of survivors were pulled from a collapsed factory complex near Dhaka onFriday. Bangladesh authorities ordered the arrests of the owners of the complex and five factories in it. A6

KevinFrayer/A

ssociatedPress

Source: Commerce DepartmentThe Wall Street Journal

Still SluggishU.S. GDP, quarterly change atan annualized rate, adjusted forinflation

–8

–6

–4

–2

0

2

4%

2013 first qtr: 2.5%

'09 '10 '11 '12 '132008

Moving average(over four quarters)

Recession

MOGADISHU, Somalia—Michael Stock sees things thatothers don’t. “Imagine this,” hesays one recent afternoon,standing on the sunny second-floor deck of his new oceansidehotel in Somalia’s war-batteredcapital. “There are banana treeswhere there’s desert now, andthere’s this view.”

The banana trees haven’tgrown in yet, but InternationalCampus, as he calls the complex,

is the closestthing to a Ritzfor many miles.A fortified com-

pound sprawled across 11 acresof rocky white beach, it offers212 rooms including $500-a-night villas, several diningrooms, coffee and snack shops,and a curving slate-colored poolwhere sun-seekers can loll awaySomali afternoons.

“It’s going to be ridiculous!”Mr. Stock said, just weeks beforeresidents began arriving forApril’s opening.

A few hours later, the jitterysound of gunfire split the warmFebruary air not far from hisnew hotel—a reminder that thecountry is still muddling througha decades-old conflict and thatthere are still bullets flying,bombs detonating.

Mr. Stock isn’t just anyonegambling on a far-fetched idea ina conflict zone. In an unusualtwist of the war business, the36-year-old American is deeplyinvolved in the conflict itself. Inaddition to being a real estatedeveloper, his company alsohelps train Somalis in modernmilitary techniques.

His security company, Ban-croft Global Development, hassupported African troops since2008 as they fought al-Shabaab,the Somali Islamic group tied toal Qaeda, which the U.S. views asa terrorist threat. The UnitedNations and the African Union,with U.S. State Departmentmoney, pay Bancroft to supportsoldiers in everything fromcounterinsurgency tactics tobomb disposal, sniper training,road building and, as Mr. Stockputs it, “bandaging shot-off

PleaseturntopageA10

BY CHRISTOPHER S. STEWART

A Bet onPeace forWar-TornSomalia

Current recovery still meagerby historical standards.............. A2

Heard on the Street................. B14

Joe Queenan: What if everybusiness ran like airlines?...... C11

Michael Stock develops real estatein Somalia and Afghanistan.

>

FRONTIERCAPITALISM

As Rescues Continue, Bangladesh Assigns Blame

Dom

inicNahr/Magnu

mPh

otos

forTh

eWallS

treetJournal

Tour

billo

nM

essi

dor

B R E G U E T B O U T I Q U E SNEW YORK BEVERLY H ILLS BAL HARBOUR LAS VEGAS

TOLL FREE 877- 891-1272

CM Y K CompositeCompositeMAGENTA CYAN BLACK

P2JW117000-6-A00100-10FEEB7178F CL,CX,DL,DM,DX,EE,EU,FL,HO,KC,MW,NC,NE,NY,PH,PN,RM,SA,SL,SW,TU,WB,WEBG,BM,BP,CC,CH,CK,CP,DN,DR,FW,HL,HW,KS,LG,LK,MI,ML,NM,PA,PI,PV,TD,TS,UT,WO

P2JW117000-6-A00100-10FEEB7178F