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Vital Signs Americans have beenstepping up their travel,with
real spending ontourism increasing at aseasonally adjusted
annualrate of 1.8% in the fourthquarter of 2012, afterdeclining
0.7% during thethird. Much of the increasewent to hotels
andrestaurants, fueling hiring inthe hospitality
industry.Employment in travel andtourism industries rose 0.4%in the
fourth quarter.
Spending on tourism,quarterly change
Source: Commerce Department
'09 '10 '11 '12’08’07’06–15
–10
–5
0
5%
>
Years of Magical ThinkingConjured Up theWorks in This
Library
i i i
From Prestidigitation to Escapology,Manhattan Repository Holds
Tricks of Trade
NEW YORK—Ricky Smith re-members vividly his first day atwork.
His new boss told him tokeep his bag packed.
“I should probably tell youthat tomorrow we are flying
toFlorida,” his boss said. “I am go-ing to shoot David.”
“David” was theprominent magicianDavid Blaine andMr. Smith’s
first as-signment was tophotograph him do-ing the famous“bullet
catch.” Hisboss was going topull the trigger.
Mr. Smith worksat a library full ofmagic secrets: TheConjuring
Arts Research Center,located a few blocks from theEmpire State
Building. The ar-chive has over 15,000 books, plusmanuscripts and
letters servingmagicians, historians and
screenwriters. The documenta-tion is all created by magiciansfor
magicians.
The magic library has takenon the sometimes dueling mis-sions of
preserving the art andmaking it more accessible—while being
entrusted with mys-teries magicians have guarded
for centuries.The center
doesn’t allowbrowsers, butmembers of thepublic with
specificinterests can makeappointments toseek out volumessuch as
“IndianRope Trick” or“Mnemonica” (formemorizing cards).
“It’s extremelydifficult for me to tell you thesecret of
anything,” says Bill Ka-lush, 47 years old, founder of thecenter.
“Real secrets are psycho-logical and deep. To take a sim-
PleaseturntopageA12
BY DEMETRIA GALLEGOS
Ask Alexander cards
The Federal Reservemaintained its easy-money policies, but the
cen-tral bank is developing astrategy to gradually winddown an $85
billion monthlybond-buying program whenthe nation’s economy
getsonto more solid footing. A4 U.S. stocks climbed as theFed’s
policy stance helpedoffset worries about the lat-est flare-up in
Europe, withthe Dow industrials gaining55.91 points to 14511.73.
C4n Cyprus was left with nar-rowing options to rescue
itsfinancial-services sector fromcollapse as international lend-ers
rejected an alternativeplan to secure a bailout. A10n Federal
authorities areweighing insider-tradingcharges against a
youngerbrother of jailed Galleonfounder Raj Rajaratnam. C1n FedEx
posted a 31% dropin profit as customers flockedto slower, cheaper
deliveryoptions instead of its premium-priced express service.
B1nBlackstonewasworking onscenarios for a potential bidfor all or
part of Dell, as thecomputer maker’s foundertried to sew up his
buyout. A1n Oracle’s growth stalled inits latest quarter, as the
firmsold fewer software licensesand its business in server sys-tems
continued to shrink. B1nH-P’s chairman and two out-side directors
narrowly surviveda re-election challenge, a re-buke reflecting
dissatisfactionwith the Autonomy deal. B5n Suntech has been
forcedinto Chinese bankruptcy pro-ceedings, sparking questionsabout
how U.S. investors in thesolar-panel maker will fare. B5n A review
of proxy state-ments shows a shift towardpay for performance for
CEOs,highlighting the growing roleof investors in shaping
exec-utive compensation. B1n Deutsche Bank revisedfourth-quarter
earnings down-ward, setting aside about$773 million in legal
provisionsfor U.S. mortgage litigation. C1n Exchange operator CME
isconsidering selling the build-ings that house its energyand grain
trading floors inNew York and Kansas City. C1n American Realty
Capitalsaid it made an unsolicitedoffer to buy Cole Credit
Prop-erty Trust III, a so-called non-traded REIT, for $5.7 billion.
C3n BP declined to submit bidsfor new oil-drilling leases inthe
Gulf of Mexico amid a sus-pension from receiving newU.S. government
contracts. B3n Intertrust Technologies,a pioneer in digital
copy-right protection, sued Apple,alleging the company infringed15
Intertrust patents. B2n NBC has committed toeventually turning over
“TheTonight Show,” which is nowhosted by Jay Leno, to youn-ger
comic Jimmy Fallon. B1
n The U.S. will pull forcesfrom an Afghan district.The
American-led coalitionsaid it would begin withdraw-ing
special-operations forcesfrom a district inWardak prov-ince,
meeting a demand byKarzai and removing an irri-tant to diplomacy.
The compro-mise came after Karzai accusedthe U.S. of lacking
respect forAfghan sovereignty and col-luding with the Taliban.
A8Other stumbling blocks re-main as Afghanistan andthe U.S.
negotiate the Amer-ican military presence.nWorld powers rushed
toprobe unconfirmed reports ofa chemical-weapon attack inAleppo on
Tuesday, whichraised fears inside Syria andabroad that the civil
warthere is poised to escalate. A9n The Senate passed a billto keep
the government oper-ating through September, a bi-partisan
compromise likely topass the House and avoid re-cent budget
brinkmanship. A4n The U.K.’s Osborne un-veiled lower growth
forecastsand said government borrow-ing would exceed plans. A11n
Obama and Netanyahusought to showcase a mendedrelationship, with
the newwarmth extending to closerpublic agreement on Iran. A7n The
Obama administrationis moving to shift control ofthe CIA’s lethal
drone pro-gram to the military, a moveredefining the campaign
tar-geting suspected terrorists. A1n Treasury Secretary Lewfinished
two days of meetingswith officials in China thatunderlined the
importance ofcybersecurity on the U.S.-China economic agenda. A16n
Turkish government andparty offices were hit bybomb attacks,
marking whatcould be an effort to derailpeace talks with the Kurds.
A9n Researchers reported ev-idence that using gene ther-apy to
manipulate the im-mune system is emerging asa promising new
strategy inthe fight against cancer. A2n Five ex-officials of
Bell,Calif., were convicted on cor-ruption charges related to
anoverpayment scandal. A6n A medical group said itsupports same-sex
marriage,saying marriage improvesthe health and well-being
ofchildren of gay couples. A5n Colorado’s governor signedcurbs on
firearms into law,angering gun-rights advo-cates while raising the
hopesof gun-control backers. A3n French police searched IMFchief
Lagarde’s home as part ofa probe related to her days asFrance’s
finance minister. A11n Australia’s prime ministercalled a
leadership vote asher party faces the prospectof defeat later this
year. A9n Japan’s Tepco is investi-gating whether a rat caused
anuclear-power plant blackout.
Business&Finance World-Wide
Follow the news all day at WSJ.com
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TODAY IN PERSONAL JOURNAL
Makeup Speeds UpSPORTS Sportscasters’ Tricks to Avoid the
Bleep
What’s News–i i i i i i
WASHINGTON—The WhiteHouse is working to shift controlof the
Central IntelligenceAgency’s lethal drone program tothe military,
U.S. officials say, amove that redefines the widelycontested
campaign that targetssuspected terrorists.
The new directive is intendedto shift the covert drone programto
one that is subject to interna-tional laws of war and under-taken
with the consent of hostgovernments.
The draft document reflects a
growing consensus within theObama administration that
thelong-term future of the programlies with the military, where
U.S.officials say it will be on firmerlegal footing and be more
trans-parent. The drone program hasdrawn fire from both
Democratsand Republicans who say it is se-cretive and
unpredictable.
Even under military control,however, the campaign is likelyto
remain relatively secretive,current and former officials said.
The shift remains controver-sial on Capitol Hill, within theCIA
and in some military circlesamong people who think the pro-gram is
more effective under theagency’s control.
One senior defense officialwarned that putting the programunder
military control could im-pose operational limitations. Hu-man
rights groups consider ashift in authority inadequate andwant it to
meet the demands ofinternational law.
The political liabilities of theCIA program have grown in
re-cent years. This month, conserva-tive and liberal lawmakers
heldup the nomination of CIA Direc-tor John Brennan over this
issue,a drive that culminated in anearly 13-hour filibuster by
Sen.Rand Paul (R., Ky.), who de-manded and received an
adminis-tration statement that it wouldnot launch drone strikes
on
Americans within the U.S.The administration shift on
drones was outlined in recentweeks as a draft presidential
di-rective, which provides formalguidance to federal agencies.
Thedirective, once finalized, will setout a general framework for
theshift to the military, providing a“clear marker” of where
thedrone program is heading with-out setting out hard deadlines,
asenior U.S. official said.
Top administration officialshave agreed to the change
inprinciple, but final approval ofthe directive awaits the
presi-dent’s nod, U.S. officials said.
The draft directive, details ofPleaseturntopageA8
By Siobhan Gorman,Adam Entous
and Julian E. Barnes
U.S. to ShiftDroneCommandMounting Criticism Sparks Push to Move
Lethal Program to Military From CIA
Chief executives typically like toboast about their companies,
butas a Friday deadline for rival bidsto buy his firm
approaches,Michael Dell finds himself in theopposite position.
Mr. Dell needs to persuade DellInc. investors that the
prospectsfor the company he founded in hisdorm room in 1984 and has
beenrunning for the past six years areanything but rosy if he is to
suc-ceed with his plan to take the com-puter maker private.
Friday marks the end of a 45-day window to flush out
alterna-tive offers to the $24.4 billion buy-out deal that Mr. Dell
and private-equity firm Silver Lake Partnersreached last month. The
$13.65-a-share offer has sparked derisionfrom some shareholders who
be-lieve the price undervalues theRound Rock, Texas, company.
No alternative bid has been of-fered, but late Wednesday
Black-stone Group LP was working on afew scenarios for a potential
bidthat would see the private-equitygiant team with a partner to
buyall or part of the computer maker,according to people familiar
withthe matter.
Absent a rival offer, Dell hassaid it would schedule a
share-holder vote on the proposed buy-out in June or early
July.
That sets up months of debateover two differing outlooks
onDell—including Mr. Dell’s unusualposition of having to talk down
hiscompany’s prospects in order toget shareholders to accept the
cur-rent offer.
Some of that position is ex-pected to be set out in a public
fil-
Pleaseturntothenextpage
BY SHIRA OVIDEAND SHARON TERLEP
Dell WalksFine LineIn PitchFor Buyout
TOKYO—Japan’s new centralbank governor, Haruhiko Kuroda,begins
work Thursday on a featno one before has managed: re-versing nearly
two decades offalling prices to lift wages andprofits in the
world’s third larg-est economy.
Mr. Kuroda’s predecessor,Masaaki Shirakawa, is amongthose who
say it can’t be done,at least not with the tools athand. Using
central-bank poli-cies to boost stagnant prices islike “punching
air,” Mr. Shi-rakawa told parliament on Fri-day.
But backed by recentlyelected Prime Minister ShinzoAbe, the new
central-bank gov-ernor has declared a mission toreach the bank’s
target of 2% in-flation “as soon as humanly pos-sible.” Mr. Kuroda,
68 years old,is expected to begin buying tril-lions of yen more in
bonds,along with other moves thatecho strategies of the U.S.
Fed-eral Reserve and several othercentral banks.
The stakes for Japan—andthe world—are high. Since 1998,Japan’s
consumer prices havedropped to 1992 levels. Wagesare down 7%. Urban
propertyprices are down 51%. Tax reve-
PleaseturntopageA12
BY PHRED DVORAKAND ELEANOR WARNOCK
Stagnant Japan Rolls DiceOn New Era of Easy Money
On Trip to Israel, an Effort to See Eye-to-Eye
WARMER MEETING: President Obama and Prime Minister Benjamin
Netanyahu, who have clashed in the past,sought to showcase a mended
relationship as Mr. Obama arrived for his first visit to Israel as
president. A7
Kobi
Gideon/PressPo
ol
Fed Stays Course
Bernanke: More bond buys..... A4
Heard on the Street.................. C10
Reuters
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