YELLOW

* * * * * MONDAY, APRIL 7, 2014 ~ VOL. CCLXIII NO. 80 WSJ.com HHHH $2 .00

Lastweek: DJIA 16412.71 À 89.65 0.5% NASDAQ 4127.73 g 0.7% NIKKEI 15063.77 À 2.5% STOXX600 339.18 À 1.6% 10-YR. TREASURY g 4/32 , yield 2.726% OIL $101.14 g $0.53 EURO $1.3704 YEN 103.30

CONTENTSAbreast of the Market C1Ahead of the Tape.. C1Corp. News....... B2,3,5,6Global Finance............ C3Heard on the Street C6Law Journal................ B4

Markets Dashboard C4Moving the Market C2Opinion.................. A17-19Sports.............................. B7U.S. News................. A2-6Weather Watch........ B6World News......... A8-16

s Copyright 2014 Dow Jones & Company.All Rights Reserved

>

What’sNews

i i i

World-WidenKarzai’s pick trailed an ex-World Bank executive and anopposition leader in Afghani-stan’s presidential vote, a tallyof partial results found. A1n Electoral-fraud allegationsmounted in the crucial south-ern province of Kandahar, afocal point of campaigning forthe ethnic Pashtun vote. A10n Ships searching for themissing Malaysia Airlines jetreported detecting signalsthat might have come fromthe black-box recorder. A13n Pro-Russian protestersseized regional governmentheadquarters in two cities ineastern Ukraine. A16n Jeb Bush said he woulddecide this year on whetherto run for the 2016 GOPpresidential nomination. A3n Some Democrats are fight-ing with the administrationover planned cuts to privateplans offered in Medicare. A4nThe U.S. plans to increasethe number of missile-defensedestroyers based in Japan bytwo to seven, Hagel said. A11n Israel’s Netanyahu blamedthe Palestinians for an im-passe in peace talks andthreatened unilateral steps. A8n Iran has been unable towithdraw much of the oil rev-enue it was to receive underan interim nuclear deal. A8nHungary’s governing partywon parliamentary elections,taking 133 of 199 seats. A12nSome 100 peoplewere ar-restedwhen a California collegeparty turned into a brawl.A2nDied: PeterMatthiessen, 86,writer and environmentalist.

i i i

Yahoo is close to orderingfour Web series as it raises

its online-video ambitions tocompete with cable networksand streaming services. A1n India’s Sun Pharma isbuying generic-drug makerRanbaxy from Japaneseowner Daiichi Sankyo in adeal valued at $3.2 billion. B1n BlackRock reshuffled itsexecutive ranks as the assetmanager took a big step to-ward picking a successor tofounder and CEO Fink. C1n Cement makers Lafargeand Holcim approved mergerplans and will seek to sell $8billion of assets in a bid to se-cure antitrust clearance. B3n Investors are opting fordividend-paying shares insteadof growth stocks, reflectingconcern over the recovery. C1nDiscount-brokerage shareshave slid in response to scru-tiny of high-speed trading. C1nGlaxo is probing allega-tions of bribery by the drugmaker’s employees in the Mid-east, according to emails. B4nDrugs from Pfizer and Lillyshowed promise in slowing thecourse of breast cancer, accord-ing to early-stage research.B5nCaterpillar could facetougher IRS scrutiny after be-ing grilled over its tax strategyby a Senate panel last week. B3n Sears’s CEO is slicing offsome of the company’s bestassets for shareholders, leav-ing bondholders at risk. B1n An ABN Ambro ex-officerand his family were founddead in their home. C5

Business&Finance

Hillary Clinton’s phantompresence in the Democratic pres-idential-nomination stakes—nei-ther in nor out—is freezing therest of the field, creating formi-dable obstacles for other candi-dates needing to raise moneyand set up an organization.

When advisers to a fundrais-ing group backing a prospective2016 Clinton bid came calling inlate January, hedge-fund man-ager and political heavyweightOrin Kramer said he met them inhis New York office and agreedto write a check. When anotherpotential candidate, MarylandGov. Martin O’Malley, tried toreach him, Mr. Kramer said hedidn’t take the call.

“She’s Gladys Knight and allthe rest of them are the Pips,”said Robert Zimmerman, a long-time Democratic donor, compar-ing Mrs. Clinton with potentialopponents from both parties.

Possible 2016 candidates arein the crucial early stages ofraising money, but they won’tlikely set up formal campaign in-frastructures until after thisyear’s midterm elections.

Even though she isn’t officiallyrunning, Mrs. Clinton retains hugeinfluence with the DemocraticParty’s fundraising and get-out-the-vote machinery. A super PACcalled “Ready for Hillary” is re-cruiting Clinton campaign volun-teers in Iowa, New Hampshire andother early-voting states. A groupcalled Priorities USA Action is pre-pared to raise millions for hercampaign, having made earlyovertures to donors such as Mr.

PleaseturntopageA4

BY PETER NICHOLAS

ClintonFreezesRest of’16 Field

KABUL—Former World Bankexecutive Ashraf Ghani and op-position leader Abdullah Abdul-lah appeared to be the twofront-runners in Afghanistan’spresidential election, sidelining acandidate viewed as PresidentHamid Karzai’s favorite, accord-ing to partial results tallied bynews organizations and one can-didate.

A victory for Mr. Ghani or Mr.

Abdullah could significantly re-duce the influence of Mr. Karzai,who has ruled Afghanistan sincethe 2001 U.S. invasion and pavedthe way for a long-term securitydeal with the U.S. that Mr.Karzai hasn’t agreed to sign, arefusal that has infuriated Wash-ington.

Messrs. Ghani and Abdullahboth say they will sign the bilat-eral security agreement, which isneeded to maintain American aidand a limited U.S. military pres-ence in Afghanistan once the in-

ternational coalition’s currentmandate expires in December.

The Wall Street Journal tal-lied partial election results fromvisits to roughly 100 polling sta-tions, out of more than 20,000nationwide, in the capital Kabuland the cities of Mazar-e-Sharifin the north, Kandahar in thesouth, and Gardez and Jalalabadin the east. At nearly all thesestations, Messrs. Ghani and Ab-dullah were the clear leaders, ac-cording to counts posted by localpoll supervisors. Mr. Karzai’s

former foreign minister, ZalmaiRassoul, trailed far behind.

It wasn’t immediately clearwhether Mr. Ghani or Mr. Abdul-lah managed to garner the abso-lute majority needed to avoid arunoff between the top two fin-ishers. Diplomats, campaign in-siders and election observerspredicted a runoff sometime inlate May or early June.

Afghanistan’s Pajhwok newsagency, which collated its infor-mation from Kabul and several

PleaseturntopageA10

BY YAROSLAV TROFIMOVAND MARGHERITA STANCATI

Afghanistan Vote SignalsSmoother RelationsWith U.S.

Angela Merkel, the German chancellorwho promised a “decisive and united re-sponse” from Europe to Russia’s annexationof Crimea, arrived Sunday in Hannover tospeak at the world’s biggest industrial fair.

Inside one fair pavilion, employees of Tav-rida Electric, a manufacturer run by a topCrimean separatist leader, were working onmock utility poles to display the circuitbreakers the company continues to sell inGermany and much of the Western world.

It is largely business as usual for TavridaElectric and company founder Alexei Chaly,one of 33 people sanctioned by European au-thorities with travel bans and a freeze on as-

sets for helping Russia bite off a piece ofUkraine.

By day, Mr. Chaly heads the new pro-Rus-sian government in the city of Sevastopol,having emerged as the de facto “people’sgovernor” since seizing power in February.By night, he runs Tavrida, which despite Eu-ropean and Canadian sanctions against Mr.Chaly, still operates largely unhindered inWestern Europe and Canada. The U.S., whereTavrida plans to expand sales, hasn’t sanc-tioned him at all.

“So far, so good,” said the 52-year-oldchief executive, cracking a smile and switch-ing from Russian into near-perfect English inan interview with The Wall Street Journal athis office in Sevastopol.

The relatively small interruptions in Tavr-ida’s global business show the limits of pen-alties targeting people behind Crimea’s se-

cession. Even in the European Union, whereMs. Merkel and other European leaderspromised a strong response, only Estonia,where the company employs about 60 peo-ple, has frozen Tavrida’s operations, accord-ing to Mr. Chaly.

Mr. Chaly said he doesn’t know why theU.S. hasn’t singled him out for his role in thetakeover. Even though he said he sold hiscontrolling stake in Tavrida before the sanc-tions as a precaution, his business shouldhave made him among the most vulnerableto Western sanctions.

A spokeswoman for the Treasury Depart-ment, which oversees U.S. sanctions, de-clined to comment on why Mr. Chaly wasn’t

PleaseturntopageA16

By Paul Sonne in Sevastopol, Ukraine,and Anton Troianovskiin Hannover, Germany

‘SO FAR, SO GOOD’

Crimean Leader Dodges Sanctions

Yahoo Inc. is raising its ambi-tions in online video, with plansto acquire the kind of originalprogramming that typicallywinds up on high-end cable-TVnetworks and streaming serviceslike Netflix, people briefed onthe company’s plans said.

The company is close to or-dering four Web series, thesepeople said. And unlike in yearspast, Yahoo isn’t looking forshort-form Web originals, butrather 10-episode, half-hourcomedies with per-episode bud-gets ranging from $700,000 to afew million dollars, the peoplesaid.

The projects being consideredwould be led by writers or direc-tors with experience in televi-sion. “They want to blow it outbig time,” said one of the people

PleaseturntopageA6

BY MIKE SHIELDSAND DOUGLAS MACMILLAN

Yahoo SetsNew PushInto VideoPrograms

Mourning the Victims of the Latest Fort Hood Shooting

SEEKING SOLACE: Kathy Abad, a military wife, prays at a memorial service at the Tabernacle Baptist Church on Sunday in Killeen, Texas, for thevictims and families affected by the Fort Hood shooting. On Wednesday, three soldiers were killed before the alleged gunman shot himself to death. A2

TamirKa

lifa/AssociatedPress

Ernie Ostuno had two bighopes recently: victory for hisMichigan teams in the MarchMadness basketball competitionand the conquest of the uni-verse. The latter has proved tobe a much better bet.

Most nights at home in GrandRapids, Mich., Mr. Ostuno hasbeen logging on to his personalcomputer to track the fortunesof a celestial phenomenonknown as the Horsehead Nebulain a space race with a difference.

The 51-year-old has alreadyseen the Horsehead Nebula—agiant cosmic dust cloud—survivea close call with a galaxy severalmillion light years away. A brushwith the vast blue aurora sur-rounding Jupiter also had nervesjangling, but it emerged un-scathed.

Now, the Horsehead Nebulahas become the red-hot favoriteto win “Hubble Madness,” an on-

line game created by scientiststhat shows two images taken bythe Hubble Space Telescope at atime and asks the public to voteon the best one.

It runs something like the Na-tional Collegiate Athletic Associ-ation March Madness basketballcompetition, with a series ofwinner-takes-all contests takingplace over several rounds. Thecompetition, held for the firsttime this year, ends Monday, justlike the famed basketball tourna-ment.

PleaseturntopageA12

BY LUCY CRAYMER

Hubble Madness: Space OdysseyHeads to Final Round

i i i

Fans Vote for Favorite Telescope Images;Rooting for Horsehead Nebula

Hubble Space Telescope

TODAY IN JOURNAL REPORT

Nurture Your Nest EggSPORTS Jason Gay on the NCAA Tournament

Getty

Images

Pro-Russia protesters seize governmentbuildings in eastern Ukraine............................ A16

Senior Staff ShuffleComing to BlackRock

NEW PICKS: BlackRock CEOLaurence Fink said lineup changestap a deep bench of talent at theworld’s largest asset manager. C1

AssociatedPress

Before investing, carefully consider the fund’s investmentobjectives, risks, charges and expenses. For a prospectuscontaining this andother important information,contact aClient Servicesrepresentative.Pleasereadtheprospectuscarefully before investing.TD Ameritrade, Inc., member FINRA/SIPC/NFA. TD Ameritrade is a trademarkjointly ownedbyTDAmeritrade IPCompany, Inc. andTheToronto-DominionBank.© 2014 TD Ameritrade IP Company, Inc. All rights reserved. Usedwith permission.

No one knows what the next12 months will bring. But with 100+

commission-free ETFs, TD Ameritradegives you more ways to diversify

and engage in the market.

tdameritrade.com/600offer

With uncertaintycomes opportunity.

CM Y K CompositeCompositeMAGENTA CYAN BLACK

P2JW097000-5-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,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

P2JW097000-5-A00100-1--------XA