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Three Days in
Antigua
Europe’s
Crisis
Of Faith
REVIEW
OFF DUTY
VOL. CCLXV NO. 14
WEEKEND
********
HHHH $3.00
SATURDAY/SUNDAY, JANUARY 17 - 18, 2015
Obama Sets Fight Over Iran Sanctions
What’s
News
i
i
WSJ.com
President Vows to Veto Legislation Calling for New Penalties; Cameron Makes Appeal to Lawmakers
BY CAROL E. LEE, JAY SOLOMON
AND MICHAEL R. CRITTENDEN
i
World-Wide
WASHINGTON—President Barack Obama vowed to veto any
legislation approving new economic sanctions against Iran,
placing him on a collision course
with the Republican-controlled
Congress as U.S. diplomats seek
to secure a deal curtailing Tehran’s nuclear program by July.
Mr. Obama and British Prime
Minister David Cameron, appear-
O
bama vowed to veto any
new sanctions on Iran,
saying new financial penalties
could unravel more than a year
of high-level diplomacy over
Teheran’s nuclear program. A1
n The Supreme Court said
it would decide whether the
Constitution gives same-sex
couples the right to marry. A1
n The federal government
will no longer participate in
controversial asset seizures
by local police agencies. A3
ing at a joint news conference
Friday, both said the enactment
of new financial penalties on Iran
could unravel more than a year of
high-level diplomacy and rekindle
fears of a Western military confrontation with Tehran’s Islamist
government.
U.S. lawmakers, both Republican and Democratic, have been
drafting new legislation to impose
a new round of sanctions on Tehran if an agreement isn’t reached
by a July diplomatic deadline.
Iranian diplomats have said
they would pull out of the talks if
the U.S. imposes any new sanctions on their country.
“I am asking Congress to hold
off because our negotiators, our
partners, those are most intimately involved in this assess that
it will jeopardize the possibility of
providing a diplomatic solution,”
Mr. Obama said. “I will veto a bill
that comes to my desk.”
Mr. Cameron said he had personally lobbied top U.S. senators on
Friday against imposing new sanctions, a rare public admission by a
foreign leader that raised eyebrows
in Washington. “Yes, I have contacted a couple of senators this
morning and I may speak to one or
two more this afternoon,” he said,
adding that the contacts weren’t
intended to have the British prime
minister tell the U.S. Senate what
to do. “That wouldn’t be right,” Mr.
Cameron said.
Instead, it was to express the
view of a key American ally that
‘Guards’ Tuckered Out as Pope Makes Historic Visit to the Philippines
n The Justice Department
secretly kept data on Americans’ calls to foreign countries
for more than a decade. A3
n Chad began deploying
troops to fight Boko Haram
in neighboring Cameroon. A6
n The U.S. will send more
troops to the Mideast to train
moderate Syrian rebels. A6
n France detained a dozen
suspects believed to have
aided the Paris gunmen. A8
Business & Finance
n The Swiss franc’s surge
hit banks, brokers and investors with hundreds of millions
of dollars in losses. A1, B1
n U.S. consumer prices rose
at their slowest pace in five
years and are poised to slow
further as oil prices fall. A2
n Europe edged closer to deflation as EU consumer prices
fell for the first time since
records began in 1997. A9
n Stocks snapped a five-session losing streak, with the Dow
rising 190.86 points to 17511.57,
capping a volatile week. B5
n Goldman Sachs posted a
drop in quarterly profit on a
middling performance from
the bank’s debt traders. B1
n PNC and SunTrust said
earnings fell, but profit at
both lenders beat Wall
Street’s expectations. B2
n Energy firms will shed
more jobs as oil prices remain
weak, Schlumberger said after
cutting 9,000 workers. B1
n Amazon.com’s tax arrangements in Luxembourg
may give it an illegal advantage, EU regulators said. B3
n PepsiCo appointed one of
investor Nelson Peltz’s advisory partners to its board. B4
n A clinical trial of the experimental Ebola drug ZMapp
may be ready to proceed. B3
Notice to Readers
WSJ.com will publish
throughout the weekend.
The Wall Street Journal
print edition won’t be
published on Monday,
Martin Luther King Jr. Day.
Inside
AT EASE: Young boys dressed as Vatican Swiss Guards waited for Pope Francis to arrive at the Cathedral Basilica of the Immaculate Conception in
Manila on Friday. Tens of thousands turned out to catch a glimpse of the pontiff as he began his visit to Asia’s largest Catholic nation. A10
BACKYARD EXILES
Cuba’s Refugees Who Never Left
BY MICHAEL M. PHILLIPS
NAVAL STATION GUANTANAMO BAY,
Cuba—In 1961, Ramon Baudin got wind that
Fidel Castro’s security forces were looking for
him. He hid in a bus headed to this U.S. military base, sneaked past a police checkpoint,
then pleaded with the American sentry: “Hey,
buddy, I’m running away. Open the gate.”
Mr. Baudin has been here ever since, part
of a small group of Cuban exiles who, in a hot
moment of the Cold War, won permission
from the U.S. government to stay at the Guantanamo Bay Naval base until Cuba was free.
For more than 50 years, the exiles have
waited out Mr. Castro, circumscribed by a 17mile razor-wire fence that separates their
present from their past. They have married
and divorced, had jobs and children. They
have danced at base clubs and drunk at base
bars. They play dominoes and listen to singer
Celia Cruz. They have also seen their adopted home become synonymous with prisoner abuse since the U.S. housed nearly 800
terror suspects here.
The ill are treated at the Navy hospital,
and the dead buried by the beach in the base
cemetery, alongside sailors and Marines who
perished in the tropics 100 years ago.
“I thought I was only going to be here for
six months,” said Mr. Baudin’s neighbor Noel
West, 81 years old.
With few exceptions, they have never returned home. Many have made their way to
the U.S. But a core group chose to stay, even
though they acquired U.S. citizenship or residency. The U.S. Navy provides them free
housing, utilities and medical care, along
with subsidized meals at base mess halls.
“At the time, the Navy offered them safe
haven, and we said, ‘Hey, you’re welcome to
stay here until this gets resolved,’ ” said the
base commander, Navy Capt. John Nettleton.
“And here we are half a century later, and
Please turn to page A10
Surge of Swiss Franc Triggers
Hundreds of Millions in Losses
Banks, brokers and individual
investors were left with hundreds of millions of dollars in
losses a day after an unexpected
surge in the Swiss franc sent
shock waves through markets.
FXCM Inc., a major U.S. retail
foreign-exchange
broker,
emerged as the biggest victim so
far and had to be rescued by an
emergency $300 million lifeline
from investment firm Leucadia
National Corp.
Shares of FXCM, one of the
largest retail currency brokers in
the world, were suspended on
the New York Stock Exchange on
By Ira Iosebashvili,
Andrew Ackerman
and Alexandra Wexler
Friday after the company said
client losses on Swiss franc
trades threatened to put it in violation of regulatory capital rules.
The two-year loan, with an
initial interest rate of 10%, is
“designed to maintain FXCM’s financial strength and allow it to
prosper going forward,” said
Leucadia Chief Executive Richard
Handler.
FXCM didn’t respond to a re-
quest for comment.
Other firms were hit when the
Swiss currency jumped by nearly
30% against the euro and 18%
against the dollar in the minutes
following the Swiss National
Bank’s decision to stop reining in
the value of the franc against the
euro.
Citigroup Inc. and Deutsche
Bank AG will each lose about
$150 million on the franc’s appreciation, said people familiar
Please turn to page A9
 The Intelligent Investor: Still
want to trade currencies?........ B1
The Supreme Court on Friday
said it would decide whether the
U.S. Constitution gives same-sex
couples the right to marry, signaling a final chapter on the
push by advocates to extend gay
unions nationwide.
The court accepted challenges
to same-sex marriage bans in
four states: Ohio, Kentucky,
Michigan and Tennessee. In November, a federal appeals court
upheld those bans. That ruling
by the Sixth U.S. Circuit Court of
Appeals in Cincinnati departed
from recent holdings by other
appeals courts that have extended the right to same-sex
marriage for more than half the
nation.
The court’s decision to take
up the issue marks a culmination
in a yearslong campaign by gayrights advocates who are increasingly confident the Supreme Court is prepared to
protect same-sex marriage, following a string of wins in the
courts and increasing public acceptance of gay marriage across
the country.
“We’ve reached the moment
of truth—the facts are clear, the
arguments have been heard by
dozens of courts, and now the
nine justices of the Supreme
Court have an urgent opportunity to guarantee fairness for
countless families, once and for
all,” said Chad Griffin, president
of the Human Rights Campaign,
a gay-rights organization.
After repeated defeats in the
lower courts, opponents of gayPlease turn to page A4
Paterno Is Winningest Coach–Again
RESTORED: The NCAA said it will reinstate 112 wins it wiped out to
punish Penn State for a child-molestation scandal, which will again give
the late Joe Paterno the most wins of major-college football coaches. A5
This Booming Chinese City Has a Towering Edifice Complex
NOONAN A13
i
Don’t Do It,
Mr. Romney
i
i
When It Comes to Baffling Buildings, Critics Say Shenyang Hits New Heights
Opinion.....................A11-13
Sports.............................A14
Stock Listings............B13
Style & Fashion......D2,3
Travel..........................D1,4,5
Weather Watch........B14
Weekend Investor B7-9
>
s Copyright 2015 Dow Jones & Company.
All Rights Reserved
BY DINNY MCMAHON
SHENYANG, China—Shenyang
last held a global profile in the
late 1600s, when the invading
Manchu emperors briefly made
it China’s capital.
More than 400 years later,
city planners are hoping architecture will finally put this chilly
industrial town back on the
map—despite other recent grand
projects regarded by many locals
as lemons.
Composite
CONTENTS
Books..........................C5-10
Corporate News.... B3,4
Eating & Drinking D6-8
Heard on Street.......B14
In the Markets...........B5
Letters to Editor......A12
High Court
To Decide
Same-Sex
Marriage
Associated Press
i
Shenyang architecture
Shenyang will soon be home
to the Pearl of the North, a 111floor office tower that will,
briefly, be the seventh-largest in
the world, dwarfing One World
Trade Center, the tallest building
in the U.S.
To the less charitable, the
building will stand as an 1,863foot mixed metaphor. At its pinnacle, a giant sphere, representing a pearl, will sit, glowing gold
at night. That light is meant to
evoke molten steel in a nod to
Shenyang’s rust-belt heritage.
During the day, the thin building is designed to evoke a guzheng, a traditional Chinese
string instrument. The main entrances on ground level flare out
to suggest the tents used by the
nomads that once roamed the
area.
The nuance is lost on some
area citizens.
“I didn’t get how the design
represents Shenyang until you
explained it,” says Song Yu-
P2JW017000-8-A00100-1--------XA
i
Associated Press
n Obama plans to press Democrats to pass trade deals and
compromise on tax policy in his
State of the Union speech. A4
i
 State of the Union speech to
press for compromise................ A4
BY JESS BRAVIN
n Last year was the world’s
warmest on record, despite relative cool in parts of North America, NASA and NOAA said. A6
n Tavenner will step down
as head of the agency overseeing Medicare and Medicaid. A4
“we should not impose further
sanctions now,” Mr. Cameron said.
“That would be counterproductive,
and it could put at risk the valuable international unity that has
been so crucial to our approach.”
Among those Mr. Cameron met
with was Sen. Bob Corker (R.,
Tenn.), the newly installed chairman of the Senate Foreign RelaPlease turn to page A6
anyuan, a 36-year-old woman
laden with designer store shopping bags. “Otherwise, it’d just
look like tall buildings in some
other big cities.”
“Totally a waste of money,”
says Qian Rufang, a retired
worker. “What do we need all
those tall buildings for?”
Baoneng Real Estate Development touts Pearl of the North
with a message on the company
website: “This iconic building
Please turn to page A5
MAGENTA
BLACK
CYAN
YELLOW