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CONTENTSCorporate News B2-4,7Global Finance............ C3Heard on the Street C6Media & Marketing B5Moving the Market C2

Law Journal ................ B6Opinion.................. A13-15Sports.............................. B8U.S. News................. A2-4Weather Watch........ B7World News.......... A6-11

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What’sNews

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World-WidenThe U.S. is rushing to ex-pand surveillance of Russia, asintelligence officials concludethat Russian planners mighthave gotten a jump in Crimea byevading U.S. eavesdropping. A1nU.S. and British intelligenceprovided key data that rampedup the Indian Ocean hunt forsuspected debris from themissing Malaysian airliner. A9n Turkey downed a Syrianwarplane, a move Erdoganopponents called a diversionahead of local elections. A6n The U.S. is boosting ef-forts to track down warlordJoseph Kony, doubling U.S.military forces in Uganda. A8n House Republicans planto release a budget blue-print, aiming for an election-year focus on the deficit. A4n Tensions are percolatingin Iraq ahead of the first par-liamentary polls since U.S.forces left in late 2011. A6n About one million childrenunder 15 contract TB everyyear, twice as many as previ-ously thought, a study said. A2n California’s DMV said itis investigating a potentialbreach of the agency’s credit-card-processing systems. A2n A federal judge issued astay against a ruling thatstruck down Michigan’s banon same-sex marriage. A4n Died: Adolfo SuárezGonzález, 81, helped steerSpain to democracy. A11

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Apple is in talks with Com-cast about teaming up for

a streaming-television servicethat would use an Apple set-top box and get special treat-ment on Comcast’s cables. A1nCisco plans to begin offering“cloud” computing to corporatecustomers, pledging to spend$1 billion over the next twoyears to enter the market. B1n The Fed has struggled toexplain its plan to keep short-term rates low even after thejobless rate and inflation re-vert to typical levels. A1n Investors are anxious aboutthe prospects formarkets with-out easy-money policies. C1n A hedge fund plans to betup to $100 million that it cancollect on a judgment againstIran over the 1983 Marine bar-racks bombing in Beirut. A1n One of J.P. Morgan’s topChina executives, Fang Fang,is expected to resign after overa decade of deal-making. C1n Venezuela’s governmentis loosening currency regula-tions as it tries to jump-startthe nation’s economy. C1n Big pharmaceutical firmsare vying to launch break-through drugs to treat ad-vanced melanoma. B1nA dispute between Swedenand Germany’s Thyssen-Krupp could shake up theglobal submarine business. B3nTopChinese refiner Sinopecsaid it would cut capitalspending this year by 4.2%. B3

Business&Finance

TODAY IN JOURNAL REPORT

The Search for Online PrivacySPORTS Jason Gay on March Madness and the Quick Goodbye

Apple Inc. is in talks withComcast Corp. about teaming upfor a streaming-television ser-vice that would use an Appleset-top box and get special treat-ment on Comcast’s cables to en-sure it bypasses congestion onthe Web, people familiar withthe matter say.

The discussions between theworld’s most valuable companyand the nation’s largest cableprovider are still in early stagesand many hurdles remain. Butthe deal, if sealed, would mark anew level of cooperation and in-tegration between a technologycompany and a cable provider tomodernize TV viewing.

Apple’s intention is to allowusers to stream live and on-de-mand TV programming and digi-tal-video recordings stored inthe “cloud,” effectively takingthe place of a traditional cableset-top box.

Apple would benefit from acable-company partner becauseit wants the new TV service’straffic to be separated from pub-lic Internet traffic over the “lastmile”—the portion of a cable op-erator’s pipes that connect tocustomers’ homes, the people fa-miliar with the matter say. Thatstretch of the Internet tends toget clogged when too many us-ers in a region try to access toomuch bandwidth at the same

PleaseturntopageA4

By ShaliniRamachandran,

DaisukeWakabayashiand Amol Sharma

Apple,ComcastExploreTV DealWeb CongestionAt Heart of Talks

Federal Reserve ChairwomanJanet Yellen caused a stir lastweek when she suggested thecentral bank might start raisingshort-term interest rates a littlesooner than investors were ex-pecting.

In focusing on that, Wall Streetmight have glossed over news ofgreater consequence.

The Fed, in its official policystatement, said it planned to keepshort-term rates below what itsees as appropriate for a normaleconomy even after the unem-ployment rate and inflation revertto typical levels.

In 2016, for example, the Fedprojects the jobless rate will reach5.4%, economic output will begrowing at a rate near 3% and in-flation will be just below 2%. Thatlevel of unemployment would belower than the average over thepast 50 years.

Yet officials see the Fed’s tar-get short-term interest rate atjust over 2% at the end of 2016,well below the 4% they considerappropriate for an economy run-ning on all cylinders.

Why do they want to keepshort-term interest rates so lowfor so long? What risks are theytaking in the process?

The official policy statementdidn’t explain. Ms. Yellen in hernews conference acknowledgedthat even though officials agreedon the rate outlook, they don’tagree on the reasons for it.

“Members of the committeehave different views about whythis is likely to be true,” she said.“For many, it’s a matter of head-winds from the crisis that have

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BY JON HILSENRATH

Inside FedStatementLurks HintOn Rates

U.S. military satellites spied Russiantroops amassing within striking distance ofCrimea last month. But intelligence analystswere surprised because they hadn’t inter-cepted any telltale communications whereRussian leaders, military commanders orsoldiers discussed plans to invade.

America’s vaunted global surveillance is avital tool for U.S. intelligence services, espe-cially as an early-warning system and as away to corroborate other evidence. In Cri-

mea, though, U.S. intelligence officials areconcluding that Russian planners might havegotten a jump on the West by evading U.S.eavesdropping.

“Even though there was a warning, wedidn’t have the information to be able to sayexactly what was going to happen,” a seniorU.S. official says.

To close the information gap, U.S. spyagencies and the military are rushing to ex-pand satellite coverage and communications-interception efforts across Russia, Ukraineand the Baltic states. U.S. officials hope the“surge” in assets and analysts will improvetracking of the Russian military and tip off

the U.S. to any possible intentions of RussianPresident Vladimir Putin before he acts onthem.

The U.S. moves will happen quickly. “Wehave gone into crisis-response mode,” a se-nior official says.

Still, as Russia brings additional forces toareas near the border with eastern Ukraine,America’s spy chiefs are worried that Rus-sian leaders might be able to cloak theirnext move by shielding more communica-tions from the U.S., according to officials fa-

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By Adam Entous, Julian E. Barnesand Siobhan Gorman

WITHOUT WARNING

U.S. Scurries to Shore UpSpying on Russia

A U.S. hedge fund plans to betas much as $100 million that itcan collect on a court judgmentagainst Iran for one of the dead-liest terrorist attacks ever aimedat Americans, according to mar-keting documents and people fa-miliar with the matter.

Three decades after an Ira-nian-linked car bomber killed 241American servicemen at a Ma-rine barracks in Beirut, RD LegalCapital LLC is seeking to raise

that sum from investors to buystakes in the protracted litiga-tion related to the attack, ac-cording to the people.

In 2007, a U.S. federal courtjudge in Washington found Iranliable for the bombing and ajudge last year ordered a $1.8 bil-lion payment to the families ofthe victims. However, that pay-ment hasn’t been collected due toan appeal by the Iranian centralbank, and it could be years be-fore the families see any money.

RD already is buying rights to

some of the payments receivedby victims’ families, as well asfees earned by their attorneysinvolved in the case, at a dis-count to face value. If the judg-ment is collected, the fund willearn millions of dollars, the peo-ple familiar said.

“It is not our policy to discusscases that are active in the port-folio,” said RD Legal ManagingDirector Katarina Markovic.

The fund would be RD Legal’sfirst to bet directly on the out-

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BY ROB COPELAND

Hedge Fund’s $100 Million Bet:Iran Will Pay for Terror Attack

Embattled Turkish Leader Rallies Allies, Crows Over Downed Syrian Jet

TOUGH TACTICS: With key elections a week away, supporters rallied in Istanbul for Prime Minister Recep Tayyip Erdogan, who dismissed criticismover silencing political opposition. Earlier, he gloated after Turkey shot down a Syrian warplane it said had breached airspace. A6

AgenceFrance-Presse/Getty

Images

TE PUKE, New Zealand—Striding among orchards ladenwith fruit for export here, scien-tists in rubber boots and shortsscratch their heads and wonderif they have bitten off more thanthey can chew.

The problemisn’t a lack of ki-wis—the exoticgreen fruit thatappears in every-thing from break-fast bowls tojuice blends. Asunny summerhas ripened themperfectly. Instead, the vexing is-sue is the kiwifruits’ skin—it isfurry and brown as it has beenfor decades.

Yet scientists and fruit fansagree: this is one industry whereit’s better not to have skin in thegame.

“When you actually look at

the top 10 fruits in the world, sixof the top 10 are convenienceproducts,” says Lain Jager, chiefexecutive of Zespri Group Ltd.,the world’s biggest exporter ofkiwis. “Having a kiwifruit thatyou could eat in a convenientway would be fantastic.”

Indeed, con-sumers tend to bea bit prickly onthe issue. “Thebrown hair juststicks to every-thing even whenyou peel it off,”says Penni Ward,who skins thefruit before she

feeds it to her 5-year-old daugh-ter Ava at their home in Auck-land. A knife is usually requiredto pierce the fruit; then perhapsa spoon to scoop it out.

Zespri is plowing millions ofdollars into research and devel-opment of a fruit with either an

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BY LUCY CRAYMER

Scientists Face a Prickly SituationAs They Search for the Hairless Kiwi

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New Zealand Effort to Grow Smoother VarietyProves Fruitless; ‘Hints of Kerosene’

Kiwi

In Crimea, holdout soldier on edge.............. A12

Introducing a new home forthe best coverage ofmarketing and advertising,tailored for chief marketingofficers, at WSJ.com/CMO.See articles on pages B1, B5

Rescue Teams HuntFor Mudslide Survivors

TENSE VIGIL: Neighbors gathered inOso, Wash., after a deadly mudslide.At least four people were killedand 18 were unaccounted for. A3

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Market frets as reality oninterest rates sets in................... C1

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