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* * * * * * MONDAY, DECEMBER 15, 2014 ~ VOL. CCLXIV NO. 141 WSJ.com HHHH $3 .00

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What’sNews

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World-Widen Japan’s Abe scored a deci-sive election victory, givinghim power to pursue goals ofrevitalizing the economy andstrengthening the military. A1n Congress’s passage of aspending bill in a bipartisanvote sets up a test of whetherthe political center can holdon other issues. A1, A4n Parts of central Sydneywere in lockdown after one ormore gunmen took peoplehostage in a cafe and placed anIslamic flag in the window. A1nWeekend protests over po-lice treatment of minoritiesdrew thousands. Leaders saidthey would push for legisla-tive and political change. A5n Turkish police detainedthe editor of the country’sbiggest newspaper and otherleading figures in a crackdownon the president’s rivals. A9nClimate negotiators reacheda compromise plan that wouldspread the burden of emissioncuts across all nations. A8n The EU’s new leadership ispoised to cancel two pieces ofenvironmental legislation. A8n A Greek leftist party’s leadover the ruling conservativesshrank slightly in polls aheadof parliamentary votes. A8n Cheney strongly defendedCIA interrogation tacticsused on detainees during theBush administration. A4nA U.S. man said he enteredNorth Korea illegally and hadbeen pardoned, media said. A7n Over 200 people may bemissing after a boat sank inCongo’s Lake Tanganykia. A9

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PetSmart agreed to bebought by a group led by

BC Partners for about $8.2billion, in the largest private-equity deal of the year. C1nSony has retainedDavidBoies, one of the nation’s topattorneys, in a bid to stop newsorganizations from using stolendocuments leaked online. B1nManymoney managers ex-pect a rebound after the Dow’s3.8% selloff last week but seenumerous obstacles ahead. C1n Junk bonds have fallen 8%since June as worry about themarket spreads beyond oil. C1nA U.S. appeals court is setto consider whether Apple’sdeals with e-book publishersconstituted price-fixing. B1nUnitedHealthcare will payHouston’s MD Anderson a flatfee for cancer care in a test of anew reimbursement model. B3n China’s growth could slowto 7.1% next year from 7.4% in2014, hurt by a domestic prop-erty slump, a study said. A7n The U.S. continues to relyon imports from Asia despitethe “reshoring” of manufac-turing, a study found. B3n The SEC is clashingwithauditing regulators, suggest-ing the PCAOB has dragged itsfeet on core regulations. C3nAmerican is planning a fre-quent-flier bonus program forhigh-fare customers. B3nBob Evans’s CEO steppeddown under pressure followingan activist-led proxy fight. B3n Juniper Networks is in talkswith an activist investor Elliottabout adding directors. B7

Business&Finance

TOKYO—Japanese Prime Min-ister Shinzo Abe scored a deci-sive election victory, securingthe power to pursue an agendathat aims to revitalize theworld’s third-largest economyand strengthen the pacifist na-tion’s military.

The victory gives Mr. Abe’sruling coalition the power and acomfortable majority to passnearly all legislation. The primeminister will get up to fourmore years in office, cementinghis place as one of the mostdominant Japanese politiciansof his generation.

The biggest challenge for Mr.Abe will be to get the economygrowing steadily after it con-

tracted for two straight quar-ters. The prime minister said hewould press companies to raisewages and give workers a tasteof recovery that most Japanesesay they don’t feel.

Mr. Abe took a gamble in call-ing the parliamentary electionjust after it was reported lastmonth that Japan’s economyslipped into recession. He saidthe vote would be a referendumon his aggressive “Abenomics”policies—a combination of fiscalstimulus, monetary easing andstructural overhauls—includinghis decision to delay a sales-taxincrease that had been sched-uled for October 2015.

The bet paid off.PleaseturntopageA7

BY YUKA HAYASHIAND JACOB M. SCHLESINGER

Japan’s Abe ScoresA Big Election Victory

This year’s Congress, bestknown for polarization and grid-lock, ended with a rare biparti-san coalition staggering acrossthe finish line, setting up a testof whether a political centercould be sustained on other is-sues next year.

The Senate passed a $1.1 tril-lion spending bill late Saturdaynight by a 56-40 vote that criss-crossed party lines, reflecting adesire by both parties to keepthe government open and endCongress’s tormented year. Italso pointed to some broader po-litical dynamics that could out-last the lame-duck session. TheHouse had approved the spend-ing bill two days earlier.

Republican leaders in both theHouse and Senate shepherded thebill over the objection of theirdisgruntled conservative wings,an assertion of power by theparty establishment after yearsof heckling by the back benches.

Among Democrats, a majorityproved reluctant to follow theparty’s resurgent liberals to aconfrontational year-end battle.The 56 “yes” votes comprised 31Democrats, 24 Republicans andone independent.

“I was upset and frustratedwith the way [the messy legisla-tive process] looked, but therewas a glimmer of hope by theway it ended up passing,” said

PleaseturntopageA4

BY JANET HOOK

A RareBipartisanSuccessOn BillPassage ReflectsMove to Center

Channel7

/AssociatedPress

NEWPORT BEACH, Calif.—AtPacific Investment ManagementCo.’s holiday party at the HyattRegency Huntington Beach Resortand Spa on Dec. 6, more than1,000 employees and their spousesadmired the Pacific Ocean andmingled between stops at appe-tizer stations.

No one needed to say why theparty felt more jovial than lastyear’s: Big-shot bond-fund man-ager Bill Gross wasn’t there.

In a short speech, Pimco ChiefExecutive Douglas Hodge nevermentioned Mr. Gross, whostunned the investment worldwhen he left for Janus CapitalGroup Inc. in late September aftermonths of internal strife. The exittriggered a scrum for tens of bil-

BY KIRSTEN GRINDAND GREGORY ZUCKERMAN

‘EMERGENCY PROTOCOL’

Pimco SteadiesItself Amid Crisis

BROOKLYN, N.Y.—Chanie Ap-felbaum has been busy prepar-ing for Hanukkah, the Jewishfestival of lights known for sim-ple old-fashioned pleasures, in-cluding lighting a menorah,spinning a four-sided top calleda dreidel, and eating lots of lat-kes, or crispy fried potato pan-cakes.

In her spacious kosherkitchen, Ms. Apfelbaum, a foodblogger and gourmet cook,stays true to tradition. Shegrates onions and potatoes byhand, then cracks eggs and addsmatzo meal to make batter thatshe doles out carefully into apan filled with sizzling oil. Theresult: a tray of round golden

brown latkes like her Bubbe, orgrandmother, made.

But tradition ends there.“I want to take latkes to the

next level—I want a gourmetlatke,” declares Ms. Apfelbaum,reaching for a pot of thick fla-vorful brown gravy that sheproceeds to slather on top ofthe pancakes. She sprinkles

ringlets of cheese that melt intothe sauce and voilà: “poutinelatkes”—a variation of the pop-ular Quebecois french fries.

Hallowed Hanukkah tradi-tions are spinning out of controlfaster than a whirring dreidel.Even the venerable menorah,shaped like a candelabra, hasbeen reinvented with familiesbuying some that resembletheir favorite pet dogs, a moose,or in the case of car lovers, apink Cadillac. Dreidels areshowing up as decorations on“Hanukkah sweaters” that rivalthe “Ugly Christmas Sweater,”made by My Ugly ChristmasSweater Inc. and other purvey-ors

Then there is the most radicalPleaseturntopageA10

BY LUCETTE LAGNADO

For a New Spin on Hanukkah, Foodies Spice Up Latkesi i i

Traditional Potato Pancakes Go Gourmet, Gluten Free; Moose Menorahs

Poutine latkes

lions of dollars as rivals tried tograb Pimco’s fleeing clients.

As bad as that blow was, itcould have been even worse.Pimco faced the threat of a liquid-ity crunch during the first fewweeks after Mr. Gross left, as in-vestors withdrew more moneyfrom the firm than any other mu-tual-fund company in history.

Pimco executives respondedwith a series of aggressive maneu-vers that helped steady the firm,fend off hedge funds and othertraders hoping to profit from theturmoil and give Pimco morebreathing room, according to peo-ple close to the company.

The previously unreportedmoves likely limited the damagesuffered by Pimco, which overseespension and 401(k) assets for mil-lions of Americans. Since then, the

PleaseturntopageA10

Turkey Launches Crackdown on President’s Opponents

Reuters

News broadcasts in Sydney Monday showed people inside a cafe with their hands pressed against the window in an apparent hostage situation.

LAST GASP: Ekrem Dumanli, editor of Istanbul’s Zaman newspaper, was among dozens detained Sunday oncharges of plotting an overthrow, in a new crackdown on opponents of President Recep Tayyip Erdogan. A9

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The Internet’s New HeightsJOURNAL REPORT Motivating Donors to Open Their Wallets

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Images

SYDNEY—Large parts of cen-tral Sydney were in lockdownMonday after at least one gun-man took hostages in a cafe anddraped an Islamic flag in thewindow, sparking concerns a ter-rorist attack was under way.

Authorities sealed off sur-rounding streets, evacuated peo-ple from buildings, and sus-pended several rail routes intoand out of the city after the inci-dent began around 9:45 a.m. atthe Lindt Chocolate Café in Mar-tin Place in the heart of the busi-ness district.

Some six hours after the siegebegan, three people fled from

the cafe. One ran from a fire exitas police pointed guns from be-hind shields into the doorway.The two others ran to safetyfrom the front door. Police didn’tsay whether the three escapedor were released.

It wasn’t clear if the attackwas linked to hard-line Islamistgroups, such as Islamic State,which have been the focus of acrackdown by authorities in re-cent weeks.

New South Wales Police Com-missioner Andrew Scipione con-firmed that an armed attackerwas holding an undisclosednumber of hostages in a buildingin the Martin Place area.

Police negotiators made con-tact with the attacker but were

still determining his motivation,said Catherine Burn, a policedeputy commissioner for specialoperations. Police said a terror-ist attack couldn’t be ruled out.

Photographs broadcast on livetelevision showed people insidethe store with their handspressed against the window.

Local media quoted the headof Lindt & Sprungli in Australia,the owner of the cafe, as sayingthere likely would have been asmany as 10 staff members and30 customers inside when thearmed man entered. Companyofficials couldn’t be reached forcomment.

Police declined to say howmany people were thought to beinside but said that it likely was

not as high as 40.Martin Place is a pedestrian

area that connects some of thecity’s main shopping areas—andisn’t far from big attractionssuch as the Sydney Opera Houseand the main ferry terminal. Theincident comes days before theChristmas holiday, when thearea gets especially busy.

“We don’t yet know the moti-vation of the perpetrator,” PrimeMinister Tony Abbott said inCanberra. “We don’t knowwhether this is politically moti-vated, though obviously thereare some indications that itcould be.” The prime ministersaid New South Wales state po-lice were responding to the inci-

PleaseturntopageA8

BY REBECCA THURLOWAND DANIEL STACEY

Sydney Siege Sparks Terror Fears

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