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* * * * * * FRIDAY, JANUARY 29, 2016 ~ VOL. CCLXVII NO. 23 WSJ.com HHHH $3.00
DJIA 16069.64 À 125.18 0.8% NASDAQ 4506.68 À 0.9% STOXX 600 334.89 g 1.6% 10-YR. TREAS. À 6/32 , yield 1.984% OIL $33.22 À $0.92 GOLD $1,115.60 g $0.20 EURO $1.0940 YEN 118.82
Japan
What’s Adopts
News Negative
Business & Finance
apan’s central bank set

Rates
J the country’s first nega-
tive interest rates, a bid to
BY TAKASHI NAKAMICHI
AND MEGUMI FUJIKAWA
keep the economy from slid-
EUGENE GARCIA/EUROPEAN PRESSPHOTO AGENCY; CARLOS BARRIA/REUTERS
ing back into stagnation. A1 TOKYO—Japan’s central

bank stunned the markets Fri-
Xerox will split itself
day by setting the country’s
into two companies and
first negative interest rates, in
give several board seats to
a desperate attempt to keep
activist investor Icahn. A1
the economy from sliding back
Amazon posted record into the stagnation that has
quarterly profit, but shares dogged it for much of the last
sank after hours as results two decades.
failed to meet estimates. B1 The unexpected move by
the Bank of Japan shows the
Microsoft’s sales and profit
central bank’s determination
fell but results beat expecta-
to fight global headwinds that
tions, with strength in many
threaten to tip the country
of the firm’s businesses. B3
back into deflation, a damag-
Crude rose to a three- ing cycle of price falls and
week high on hopes Russia weakening economy.
and OPEC would cooperate Yet it also shows how few
on production cuts. C1 policy options are left for the
Stocks got a boost from Donald Trump, left, held his own campaign event Thursday night while seven of his rivals took the stage to debate without the GOP front-runner. BOJ. The central bank is al-
Hopefuls Spar, Minus Trump

oil, but a health-care selloff ready buying ¥80 trillion
helped curb gains. The Dow ($674 billion) in assets a year,
rose 125.18 to 16069.64. C4 putting nearly a third of
Japan’s massive bond market
The EEOC plans to re-
in the hands of the central
quire large employees to dis-
bank and sending Japan’s
close comparative pay be-
debt-to-gross domestic-prod-
tween men and women. B1
Iran agreed to buy 118
Remaining GOP maining candidates had more
time and political space to
ability to win a general elec-
tion against the Democrats’
New Leader uct ratio to 230%, more than
any other major economy.
Airbus jets, but Tehran still candidates seek to draw differences with each leading candidate, former Sec- In Iowa, likely Republican After three years of BOJ as-
faces a host of obstacles in outline differences, other on a range of issues— retary of State Hillary Clinton. caucusgoers would support: set purchases, inflation expec-
revamping aviation. B1 and establish their credentials The final debate before the Donald tations in Japan are sagging,
establish credentials as best able to rally anti- Iowa caucuses was more pol- 32% Trump and recent market volatility
Walgreens is suspending
Trump forces and also win the icy-oriented than previous has threatened to undo some
some ties to Theranos after a 28%
DES MOINES, Iowa—Repub- general election. events, as candidates generally of what the BOJ had achieved
critical inspection report. B3 25% Ted Cruz
lican presidential candidates The debate drew out partic- avoided the insults and antics 24% with its extraordinary easing:
Ford swung to a $1.9 bil- met Thursday for their first ularly bitter disagreements be- that have made prior debates a weaker yen and higher stock
Marco
lion net profit in the fourth debate without Donald Trump, tween the two candidates who entertaining, if not illuminat- prices.
18% Rubio
quarter, capping a record year and his rivals took the oppor- have most consistently run ing on the issues and presi- The BOJ’s move could also
for operating results. B4 second and third behind Mr. dential qualifications of the 13% add further pressure on the
By Janet Hook, Trump—Sens. Ted Cruz of candidates. U.S. Federal Reserve to hold
11% Ben
World-Wide Beth Reinhard and Texas and Marco Rubio of As candidates sparred in 8% Carson back on raising interest rates,
Rebecca Ballhaus Florida, who attacked each the two-hour debate, Mr. less than a month after it
other on immigration policy Please see GOP page A5 4% 4% Jeb Bush started tightening again, as
GOP presidential hopefuls tunity to try to get out from and how they are running economies throughout the
met in a debate without under his shadow just days be- their rival campaigns. globe show signs of distress
Jan. 10, ’16 Jan. 28
Trump, who boycotted the fore 2016 voting begins with Mr. Rubio of Florida cast and weakness.
Sources: WSJ/NBC News/Marist Poll
event, and his rivals took Iowa’s Monday caucuses. himself as the candidate best Gerald F. Seib: Without front- The Bank of Japan’s move
THE WALL STREET JOURNAL.
the opportunity to try to es- In the absence of Mr. able to unify the party, and as runner, issues stand out......... A5 makes it the second of the
cape his shadow ahead of Trump, who boycotted the Fox an alternative to the insurgent Trump seeks to win over RISING: Donald Trump is world’s major central banks to
Monday’s Iowa caucuses. A1 News debate because of a dis- candidates, Messrs. Trump veterans........................................ A5 dominating the GOP presidential set negative interest rates,
Trump is dominating the pute with the network, the re- and Cruz, by focusing on his field, a new poll finds. A4 Please see JAPAN page A7
GOP field in the first three
states to vote in the 2016
campaign, a poll found. A4
Obama assembled advisers
to talk about stepping up mili-
Xerox Inside WHEN A CEO
tary operations against ISIS,
including the possibility of an
expanded fight in Libya. A12
To Split, Amazon’s profit/loss, in millions
$600 million BORROWS
The Assad regime has
been accused of reinstat-
Reversing 400
200
4Q 2015
$482M
ON HIS STOCK
ing or tightening sieges on
opposition-held areas ahead
of Syria peace talks. A12
Strategy –200
0
U.N. officials said they Xerox Corp. will split itself

–400
At trucking company Swift, board gave leeway
expect Syrian regime dele- in two and give several board
gates to arrive Friday for seats to activist investor Carl –600
to its chief as he faced repeated margin calls
peace talks but were uncer- Icahn, reversing an effort by 2012 ’13 ’14 ’15
tain about the opposition. A12 the century-old company to Source: the company
A stock slump last year the extent of his borrowing.
The WHO will convene an marry business services with squeezed trucking executive Three times, Swift’s board
emergency committee to dis- its copiers and printers. Jerry Moyes, who had bor- stepped in to give the CEO
BUSINESS & TECH. | B1 more time to deal with his
cuss the Zika virus, which the
margin loans. Mr. Moyes also
organization’s head said is
spreading “explosively.” A6
By Dana Mattioli,
David Benoit Amazon Delivers, but Fails to Please By Ted Mann,
Robbie Whelan got some potential relief via
and Drew FitzGerald and Theo Francis a stronger share price as the
The general in line to take Amazon.com posted the largest quarterly profit in its 20-year board approved a stock buy-
over as commander in Af- Xerox will divide into two history, but its shares plunged as much as 15% in after-hours trading. rowed heavily against his back plan, Swift’s first since
ghanistan said he believes publicly traded companies: shares in the company he going public six years ago.
U.S. forces should only be re- one containing its office ma- founded. Now Mr. Moyes is calling
duced if conditions allow. A6 chines and another housing its The chief executive of for an even larger buyback,
services operations, according MANSION | M1 Swift Transportation Co., in one of a chain of events at
Seoul is leaning toward
deploying an advanced U.S. to people familiar with the
matter. The company is ex-
Miami’s Coconut Grove Goes Glam one of the largest trucking
firms in the U.S., not only
the trucking firm that shows
the complications a board
missile defense system to
guard against North Korea. A6 pected to make the announce- faced demands for more can face as it grapples with
ment Friday when it is fore- The laidback enclave is now commanding some of the highest prices loan collateral but ran up how much to let top execu-
Gun-silencer sales have cast to report a fourth straight in Miami. Can it hang onto its hippie roots? against company limits on Please see SWIFT page A8
surged since the start of the year of declining profits and
year, a trend attributed to a sales.
forthcoming regulation. A3 The split unravels Xerox’s
biggest ever acquisition, the
In an About Face, Army Allows a Change in Socks
2010 purchase of Affiliated i i i
CONTENTS In the Markets....... C4 Computer Services Inc. for
Arts & Ent........... D2-7 Mansion.............. M1-12
Business News.. B1-6 Opinion................ A9-12 about $6 billion, which pushed During workouts, soldiers can now toe the line with black or white ones; no anklebones
Crossword................. B6 Sports.......................... D8 Xerox deeper into providing
Election 2016.... A4-5 U.S. News............. A2-3 bill processing, managing call BY AUSTEN HUFFORD black ones because they hide the Soldiers typically work out in
Global Finance........ C3 Weather..................... B6
Heard on Street.... C8 World News. A6-7,12
centers and other back-office dirt and muck encountered on trails their PT uniforms with their unit
services to government agen- Soldiers in the U.S. Army have during workouts, and they better several times a week, if not every
cies and corporations. The long been shoehorned into wearing match the mostly black physical- day, and white socks are tough to
> split would follow a similar white socks during their workouts— training uniform the Army began keep clean. After days in the mud,
move by rival Hewlett-Packard but change afoot with uniform regu- using in 2014. even regularly washed socks start to
Co. last fall. lations recently has allowed them “White socks get dirty fast,” said turn gray, which can violate Army
As part of the move, billion- another option: black socks. Staff Sgt. Andrew Gile, who is part standards. Many soldiers even toe
s Copyright 2016 Dow Jones &
aire Mr. Icahn will get three White had been the only sock of the Army’s New York City Re- the line by keeping mud-stained
Company. All Rights Reserved seats on the services company’s color allowed for nearly a quarter- cruiting Battalion. “Black hides ev- workout uniforms in the back of
Please see XEROX page A2 century, but many soldiers sought erything.” Please see SOCKS page A8
A2 | Friday, January 29, 2016 * ***** THE WALL STREET JOURNAL.
U.S. NEWS
Durable Orders Fall by Most Since Recession
BY ERIC MORATH evidence the manufacturing sec- a nearly three-year-long expan- cent source of strength for cate the economy slowed more slowdown from a 2% annual-
tor is contracting. And with the sion in manufacturing came to many metal and equipment than previously thought at the ized gain in the third quarter.
A key measure of U.S. manu- dollar strengthening further this an end in November. And the makers. end of 2015. The Commerce De- One silver lining could be
facturers’ health suffered its month and financial-market tu- Federal Reserve’s reading on in- Caterpillar Inc. said Thurs- partment will release its first that the U.S. is no longer as
largest annual decline since the mult likely threatening business dustrial production has de- day that weak demand for reading of fourth-quarter gross dependent on manufacturing
recession ended more than six confidence, a factory slowdown clined in 10 of the past 12 equipment used in mining and domestic product on Friday. to propel growth. The sector
years ago, showing how global could last well into this year. months, putting it off nearly 2% oil drilling will cause 2016 reve- Economists surveyed by The accounts for just 12% of total
headwinds are eroding a one- “The entire year of 2015 was from its peak in December 2014. nue to fall by about 10%, worse Wall Street Journal expect economic output. In 1997, the
time pillar of the economy. pretty much a bust for durable- A number of forces ham- than a 5% decline projected in growth slowed to a 0.8% annual first year for which the gov-
Demand for long-lasting goods makers,” said Michael pered U.S. factories last year. October. Last fall, many ana- pace, but those forecasts were ernment has gross-domestic-
manufactured products made in Montgomery, economist at IHS An economic slowdown in lysts anticipated oil prices made before larger-than-ex- product data by industry,
the U.S. fell 5.1% in December Global Insight. “Industries China, Brazil and other markets would start rising this year, but pected drop in manufacturing manufacturing accounted for
from a month earlier, and de- faced stiff competition from for U.S. goods limited foreign instead they sunk to new lows. demand. 16.1% of the economy.
clined 3.5% for all of 2015, the foreign rivals for U.S. market demand. Meanwhile, a stronger Boeing Co. this week said it After the manufacturing re- “It’s been surprising how
Commerce Department said share, and exporters faced in- dollar made U.S. goods more expects to deliver fewer com- port, J.P. Morgan Chase & Co. little spillover there’s been
Thursday. The annual decline in tense pressures abroad.” expensive overseas and foreign mercial jets this year. The com- lowered its fourth-quarter from job losses in manufac-
durable-goods orders is the Thursday’s release is in line products relatively more afford- pany’s sales had grown in part projection to no change in turing and mining to the
largest outside a recession on with data from the Institute for able for American consumers. due to strong demand from for- output. Forecasting firm Mac- broader economy,” J.P. Mor-
record back to 1992. Supply Management, a group of And a pullback in U.S. oil pro- eign airlines. roeconomic Advisers forecast gan economist Jesse Edgerton
The figures add to mounting purchasing managers, showing duction last year reversed a re- The latest data could indi- a 0.4% growth pace, a sharp said.
Mixed Bag
Unions gained members in some sectors but lost in others.
Change in union membership for select industries 2014 to 2015
Union Membership Holds Steady
BY MELANIE TROTTMAN enough to increase the overall most public-sector workers of Still, he acknowledged the
Education and
rate of membership. collective-bargaining rights, financial challenge of funding
139,000 The rate of union member- Membership in the private and say labor laws need up- worker movements that don’t
health services
ship in the U.S. held steady in sector rose slightly to 6.7% dating to make it easier for produce dues-paying union
Educational services 117,000 2015, with slight overall gains from 6.6% in 2014 as unions workers to unionize without members.
in union membership rosters added 195,000 more members intimidation from employers. Workers involved in the
Wholesale and outweighed by the rising ranks there. The public sector Membership in Wisconsin Fight for $15 campaign are
retail trade 102,000
of nonunion workers. had 23,000 more unionized tumbled to 8.3% last year from still seeking traditional union
Professional and The share of U.S. workers in workers in 2015 than it did the 11.7% in 2014 as unions lost representation.
39,000 unions last year was un- year before, but the member- 83,000 members in the state. Unions also face a Supreme
business services
changed at 11.1%, according to ship rate fell to 35.2% from William Spriggs, chief econ- Court case that could elimi-
Health care and Labor Department figures re- 35.7% over that period due to omist for the AFL-CIO, the na- nate their ability to make pub-
22,000
social assistance
leased Thursday, a reflection a larger increase in nonunion tion’s largest union federation, lic-sector workers pay for
–14,000 Accommodation
of the labor movement’s strug- government workers. The said the government’s num- union representation in more
gle to reverse years of stagna- overall number of government bers don’t reflect the strides than 20 states where the re-
tion that followed decades of workers rose by 388,000. that unions are making in quirement is allowed.
–17,000 Telecommunications declines. “You’ve got a labor move- helping low-wage workers The ability to collect fees
Unions collectively added ment that’s not moving,” said raise their pay. The union- from dues-paying members
–28,000 Construction new members in the private Gary Chaison, a professor of funded Fight for $15 campaign and workers who don’t join
and public sectors, including industrial relations at Clark that began in New York with their office union has helped
–40,000 Manufacturing in industries such as leisure, University in Worcester, Mass. fast-food workers has “totally build the strength and politi-
hospitality, retail, education, “It’s a failure to be revital- changed the conversation on cal influence of public-sector
Transportation and and health services, while they ized.” minimum wage,” said Mr. unions, which generally have
–44,000 saw declines in manufacturing, Union officials blame bat- Spriggs. “The movement is to represent all workers in a
warehousing
construction and transporta- tles in states such as Wiscon- stronger than what you can bargaining unit even if they
Source: U.S. Labor Department THE WALL STREET JOURNAL. tion. Their gains weren’t sin that have all but stripped see in these numbers.” don’t join the union.
U.S. XEROX sions could undo gains from the

ACS deal, including cost sav-
ings, Piper Jaffray analyst
Watch Continued from Page One
George Tong said. He warned
“it’s a very big transaction to
board, the people said. Mr. manage” fraught with risk,
Icahn in November disclosed a though he said Mr. Icahn could
stake in Xerox and said he help guide the process.
would seek talks with the com- Dallas-based ACS was a pio-
MICHIGAN pany about its future. With an neer in the business of shipping
8.1% stake in the company, Mr. back-office work to countries
Detroit Teachers Icahn’s hedge fund is now the with cheap labor such as Mex-
Sue Over Schools second-largest shareholder af- ico and Ghana. About 40% of its
The union representing De- ter index giant Vanguard business is with government
troit’s public-school teachers filed Group. entities, such as state Medicare
a lawsuit Thursday demanding Xerox, which generates and Medicaid agencies.
BLOOMBERG NEWS
that the city fix school buildings about $20 billion in annual But contract hiccups in re-
that have fallen into disrepair sales, has a market value that is cent years have hurt growth
and calling for the removal of less than half its annual sales. from the same sectors that
the system’s state-appointed The shares lost a quarter of were supposed to save Xerox.
emergency manager. their value last year and have The company last year booked
The suit was filed in a Michi- shed an additional 13% so far Xerox is dividing into two publicly traded companies. Carl Icahn, above, will get three seats. $146 million in write downs af-
gan state court by the American this year, ending Thursday at ter it acknowledged it couldn’t
Federation of Teachers and its $9.23. engineering intern in 1980 and handle some state Medicaid
state and local affiliates—as well In October, after years of Xerox Revenue Shift worked her way to the top. contracts.
as a handful of Detroit parents— sales and profit declines, Chief Xerox now gets about 56% of its revenue from services While Xerox took on debt to Founded in Rochester, N.Y.,
against the Detroit Public Executive Ursula Burns said the buy ACS, she defended the deal at the turn of the last century,
Revenue in billions Services Document technology
Schools and Darnell Earley, a company was conducting a as a way to deliver more con- Xerox got its big break from a
state-appointed emergency man- strategic review of its opera- $12 billion Estimates* sistent revenue streams that Queens, N.Y.-based inventor
ager for the school system. tions. And a month later Mr. $10.7B would offset shrinking profits Chester Carlson, who produced
Detroit students “have been Icahn revealed his stake. The 10 in the hardware business. the first xerographic image in
deprived of a minimally adequate two have since held talks about Even after announcing the 1938. Using that technology, Xe-
education” due to unsafe learn- the breakup plan, the people strategic review in October, Ms. rox brought its first automatic
8 $7.9B
ing environments, the suit says. said, and both sides largely Burns stood by the structure of commercial copier to market
Mr. Earley said Thursday his agreed. keeping its two units under the two decades later and sold
goal as emergency manager has Mr. Icahn has had several 6 same roof. “We do see, to date, shares to the public in 1961.
been to return the city’s schools successful engagements with strategic value in having these For decades, Xerox built its
“to some form of local control.” companies in the midst of 4 two businesses together,” she business by inventing new ma-
“We are committed to ensur- breaking up in recent years, in- said in October. “As you go chines—such as the photo-
ing that our students and staff cluding at eBay Inc., Manito- 2 through the review, that’s one copier and the laser printer—
have a safe working and learning woc Co. and Gannett Co. of the things that we’ll vali- and pushing companies to buy
environment,” he said. Xerox would continue a date.” more office machines supplied
—Melissa Korn trend in corporate America in 0 But that formula has been with pricey ink and toner. Its
which diversified companies ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 sputtering. While Xerox’s ser- success funded its famed Palo
TEXAS are splitting into more highly *Not including currency fluctuations Source: the company THE WALL STREET JOURNAL. vices business has grown in Alto Research Center, whose
specialized pieces. H-P split past years, it hasn’t earned work included Ethernet tech-
‘Affluenza’ Teenager into Hewlett Packard Enterprise wind what had been Ms. The deal jolted Xerox’s corpo- enough to counter the slide in nology and an early prototype
Returns from Mexico Co., which is focused on serv- Burns’s signature deal, one that rate identity, adding 74,000 its traditional hardware opera- computer with a graphical user
The Texas teenager who used ers, professional services and she started pursuing shortly af- new ACS employees to a work- tion. The company has warned interface and mouse. But it en-
an “affluenza” defense in a fatal software, and HP Inc., which ter being named Xerox’s CEO in force of 54,000, and turned it its document division revenue dured bruising battles with U.S.
drunken-driving wreck arrived in sells personal computers and 2009. The ACS acquisition was into a company with $22 billion could fall as much as 7% in and overseas rivals that trig-
Texas following his deportation printers. Online-auction pioneer a way to shift the company’s fo- of revenue practically over- 2015, excluding the impact of gered layoffs and restructur-
from Mexico, more than a month eBay spun off its PayPal pay- cus from document handling to night. exchange rates. ings. In 2000, it slashed its div-
after he and his mother allegedly ments-processing unit in 2015. a range of services for business Ms. Burns is a Xerox veteran Splitting Xerox’s printer idend in the face of huge losses
fled the U.S. as prosecutors in- The separation would un- and government customers. who joined the company as an business from its service divi- and heavy debt.
vestigated whether he had vio-
lated his probation.
CORRECTIONS AMPLIFICATIONS
THE WALL STREET JOURNAL
Ethan Couch, 18 years old, (USPS 664-880)
(Eastern Edition ISSN 0099-9660)
was apprehended with his (Central Edition ISSN 1092-0935)
mother in Puerto Vallarta on (Western Edition ISSN 0193-2241)
Editorial and publication headquarters:
Dec. 28, after a call for delivery 1211 Avenue of the Americas, The Center for Medical Heard on the Street item Money & Investing article Georges restaurant in New
pizza alerted authorities to their New York, N.Y. 10036 Progress says it “uses the Thursday about the results Monday about the case incor- York. The caption incorrectly
Published daily except Sundays and general
whereabouts. His mother was legal holidays. Periodicals postage paid at New same undercover techniques incorrectly ascribed those fig- rectly said the sum was 18 said it was taken at his home
quickly deported, though Mr. York, N.Y., and other mailing offices. that investigative journalists ures to Facebook’s total sales. times more than the original in Jupiter, Fla.
POSTMASTER: Send address changes to The
Couch fought his deportation. Wall Street Journal, 200 Burnett Rd., Chicopee, have used for decades in ex- amount.
His attorneys recently MA 01020. ercising our First Amendment The German economy saw Former University of
All Advertising published in The Wall Street
dropped the fight, and Mexican Journal is subject to the applicable rate card, rights to freedom of speech a period of hyperinflation in A $10,000 investment in a Southern California and Los
copies of which are available from the
immigration agents put Mr. Advertising Services Department, Dow Jones & and of the press, and follows the 1920s. A Money & Invest- fund with annual costs of Angeles Raiders football run-
Couch on a commercial flight to Co. Inc., 1155 Avenue of the Americas, New all applicable laws.” In some ing article Tuesday about 0.03% would grow to $56,949 ning back Marcus Allen is the
York, N.Y. 10036. The Journal reserves the right
Texas on Thursday. He arrived at not to accept an advertiser’s order. Only editions Tuesday, a U.S. News German saving habits incor- in 30 years if its portfolio only player to have won a
Dallas-Fort Worth International publication of an advertisement shall constitute article about the indictment rectly said it was in the earned an average of 6% an- Heisman Trophy, NFL MVP, a
final acceptance of the advertiser’s order.
Airport later Thursday morning. Letters to the Editor: of the center’s founder incor- 1930s. nually before costs. A Page Super Bowl title and a col-
Mr. Couch had been sen- Fax: 212-416-2891; email: wsj.ltrs@wsj.com rectly attributed the state- One article Wednesday about lege-football national title. A
tenced to 10 years’ probation in NEED ASSISTANCE WITH ment to the Center for Ameri- Richard Cordray, director mutual-fund fees incorrectly Sports article Tuesday about
juvenile court for the 2013 YOUR SUBSCRIPTION? can Progress. of the Consumer Financial said it would reach $59,949. likely NFL MVP Cam Newton
drunken-driving wreck. During CONTACT CUSTOMER SUPPORT. Protection Bureau, ordered of the Carolina Panthers in-
the trial, a defense witness ar- By web: customercenter.wsj.com
Facebook Inc.’s advertis- lender PHH Corp. to return A photograph of actor correctly said Mr. Allen is the
gued Mr. Couch was coddled into By email: wsjsupport@wsj.com ing sales rose 57% in the $109 million in ill-gotten Burt Reynolds with the Jan. only player to have won a
a sense of irresponsibility by his By phone: 1-800-JOURNAL fourth quarter from a year gains, 17 times more than ini- 22 House Call column in Man- Heisman Trophy, NFL MVP
wealthy parents, a condition the (1-800-568-7625) earlier, to $5.6 billion. A tially ordered by a judge. A sion was taken at Jean- and a Super Bowl title.
Or by live chat at
expert called “affluenza.” wsj.com/livechat
—Associated Press Readers can alert The Wall Street Journal to any errors in news articles by emailing wsjcontact@wsj.com or by calling 888-410-2667.
THE WALL STREET JOURNAL. * * * * * * Friday, January 29, 2016 | A3
U.S. NEWS
Flint Stirs
Worry Over
Lead Pipes
Crisis exposes danger roughly 18 months. Investiga-
tions are under way into
of aging infrastructure whether laws were broken.
but replacing old lines Even though Flint has
switched back to using Detroit
is difficult and costly water, it’s still not safe to
drink. The city is now adding
BY CAMERON MCWHIRTER phosphate to coat the pipes, as
JIM WEST/ZUMA PRESS

AND KRIS MAHER many municipalities do, and
authorities say the lead levels
The crisis in Flint, Mich., are dropping. Meanwhile, resi-
has exposed the danger that dents are advised to drink bot-
lead could potentially leach tled water or use a filter to
into the drinking water of mil- help remove contaminants.
lions of Americans, showing The crisis comes as the En- A pipeline now under construction will supply Flint, Mich., with water from Lake Huron. Flint’s decision to tap the Flint River, which
what can go wrong if aging in- vironmental Protection Agency has highly corrosive water, as an interim source caused lead contamination in the city’s drinking water.
frastructure isn’t properly is working on revising the pri-
monitored and maintained. mary federal regulation aimed have been speaking out against Mr. Webber, 45 years old, who pended all water main replace- lines within the system.
Lead is common in water at protecting Americans from for the last 10 years,” he said. said his blood pressure has ment projects that include lead Officials in Cincinnati, Pitts-
pipes across the country. Mil- lead in water. Children are es- Experts generally agree that gone up because of the con- service lines to nearby build- burgh and other U.S. cities
lions were installed before pecially vulnerable to even the lead service lines that contamination. He takes only oc- ings after tests showed the alarmed by what happened in
1986, when federal law banned small amounts of lead, which nect water mains to homes are casional, brief showers now, he construction raised lead levels Flint are now taking steps to
lead pipes and solder, and can damage developing a leading culprit for lead con- said: “In and out, as cold as in the water going into several scrutinize potential risks to
some date to the 1800s. brains. tamination in water and need you can stand it.” Hot water homes. their water systems.
The price tag just to dig up On Thursday, the Michigan to be removed. leaches more lead from pipes. In Sebring, Ohio, schools Environmentalists are call-
and replace as many as eight Senate approved $28 million in “It’s going to be a huge fi- Ricky Greene of Flint is ea- were closed for several days ing on the EPA to more aggres-
million lead service lines into funding for aid to Flint resi- nancial challenge,” said G. ger to have the service line in this week after environmental sively enforce and eventually
homes and businesses could dents. It includes $3.8 million Tracy Mehan III, executive di- front of his house replaced. regulators told residents that overhaul a 1991 regulation
reach tens of billions of dol- to treat children with high rector for governmental affairs Twice a day, Mr. Greene, the operator of a local water aimed at preventing lead con-
lars. The task is complicated blood levels, $3 million to help at American Water Works As- 59, and his wife, Sandra, 60, system had failed to warn its tamination in drinking water.
by the fact that utilities and cover unpaid utility bills and sociation, a trade group repre- heat 30 bottles of water and 8,100 customers of high lead Under the rule, if more than
cities often don’t know where $2 million for work being done senting 4,000 utilities across carry them to the bathroom to and copper levels. 10% of home water tests in a
such lines are buried. And tens by the National Guard to dis- the U.S., not including Flint’s. wash. Even so, a rash on Mr. In the early 2000s, wide- system show lead levels
of millions of other water lines tribute bottled water and fil- Just 2% of water utilities sur- Greene’s back that he believes spread lead contamination was above 15 parts per billion, util-
have lead solder or fixtures. ters to residents. veyed by the group last year he got from drinking and bath- discovered in Washington, ities must use chemicals to
The Flint crisis began when Nationwide, lead solder that said they had all the financial ing in contaminated water has D.C., after the drinking-water make water less corrosive, re-
the city switched to a new wa- seals pipes and joints exists in resources to cover future pipe- yet to fade. “We haven’t heard disinfectant was changed to place lead service lines and no-
ter source in 2014 to cut costs. about 81 million homes, or line upgrades. anything about having the ser- chloramine from chlorine, tify the public.
The highly corrosive water roughly two-thirds of house- Flint residents Keri and Mi- vice lines replaced or compen- causing lead to leach into the EPA spokeswoman Monica
from the Flint River ate away holds, and leaded brass fix- chael Webber and their two sating the people for getting it water. Lead levels in the water Lee said the agency hopes to
at pipes’ protective lining, lay- tures are in the majority of daughters have been using done,” he said. system rose above 15 parts per publish a proposal revising the
ing bare lead that leached into homes, said Marc Edwards, an bottled water for drinking, Lead contamination of wa- billion, the action level set by rule in 2017 while looking to
the water. The water wasn’t environmental engineering cooking and brushing their ter has cropped up elsewhere, the EPA. The water authority take steps more immediately
treated to prevent the corro- professor at Virginia teeth, using tap water as little though on a smaller scale than was required to inform the that could strengthen it.
sion, and the high lead levels Tech. “While Flint is an outlier, as possible. in Flint. public about the contamina- —Amy Harder
weren’t made public for it confirms everything that we “It’s a total nightmare,” said This month, Milwaukee sus- tion and replace lead service contributed to this article.
Silencers Sell Briskly Ahead of Rule FBI Defends Oregon Actions

BY ALEJANDRO LAZO ing holdouts refusing to leave
BY ASHBY JONES AND JIM CARLTON the Malheur National Wildlife
Refuge. He said agents were
Retailers report a surge in BURNS, Ore.—Law-enforce- working “around the clock” to
sales of gun silencers since the ment officials Thursday night get them to leave peacefully.
start of the year, a trend attri- defended their actions in the Federal authorities spent
buted to a forthcoming Obama death of Robert LaVoy Fini- weeks trying to avoid making
administration regulation ex- cum, one of the protesters who any overt moves that would
pected to create roadblocks for had occupied a wildlife refuge, fuel the antigovernment senti-
the most popular way of buy- releasing a video showing Mr. ment from militia groups and
ing the devices. Finicum being shot when he their supporters, but they said
Luis Rose, owner of Sterling appeared to reach toward a they couldn’t avoid the violent
Arsenal, a gun shop and manu- gun in his jacket. confrontation that resulted in
facturer in Sterling, Va., said “We did everything we could Mr. Finicum’s death.
that by the end of January, he to bring this situation to a The circumstances of his
has sold half of the year’s in- peaceful resolution,” said Greg death have been hotly debated
ventory of one of the most Bretzing, special agent in on social media and among his
popular silencer brands. Mr. charge of the Federal Bureau of supporters, many of whom re-
Rose said he typically sells Investigation’s Portland Division jected the official account that
about $100,000 of those si- in Oregon. “It was a reckless ac- Mr. Finicum, a 54-year-old Ari-
SAMUEL CORUM/ANADOLU AGENCY/GETTY IMAGES
lencers a month, but so far has tion that resulted in the conse- zona rancher known as LaVoy,
sold about six times that. quences you see here today.” attempted to fire on police
Mr. Rose predicts sales of Mr. Bretzing showed the when he was shot a few miles
silencers, which generally run video during a press confer- north of Burns.
between $800 and $1,200, will ence Thursday, as the standoff —Devlin Barrett
be “gangbusters” until at least dragged on with four remain- contributed to this article.
the early summer, when the
new rule takes effect.
©T&CO. 2016
The National Firearms Act

of 1934, the Depression-era
law governing silencers and a
small group of other federally
regulated firearms, requires
that people who want to buy a A customer holds a Remington 1911 with a silencer at Blue Ridge Arsenal in Chantilly, Va.
silencer first get approval
from a local law-enforcement share access to guns and ac- The new regulation does Idaho, said that while he
agent. cessories, and freely exchange make it easier for individuals wouldn’t know hard sales
To sidestep such approval, them among themselves. to get silencers, by removing numbers for January until next
many buyers have used a loop- The Bureau of Alcohol, To- the approval requirement from month, demand so far this
hole for the past decade, ac- bacco, Firearms & Explosives local law enforcement, though year has been exceptionally
cording to gun experts, by set- said that 111,599 trusts for si- they still need to pass a federal high. “Frankly, it’s been hard
ting up legal entities called lencers and other firearms background check. However, to keep up. We’re running at
trusts, which don’t require a covered under the 1934 law the vast majority of silencer absolute capacity,” he said.
law-enforcement sign-off. were set up in 2014, the latest purchases in recent years have Gun-rights advocates say
Trusts offer other advan- data available. The figure was been made by trusts. For in- that misconceptions have de-
tages over silencer registra- up sharply from the 13,710 veloped around gun silencers.
tions by individuals. A si- trusts approved in 2009. They aren’t wielded solely by
lencer registered to an As of February 2015, there
Obama regulation cold-blooded assassins, the
individual may be used only were 792,282 registered si- will make it harder way Hollywood often portrays
by that person. Letting some- lencers in the U.S., up 277% them in movies and television,
one else borrow or store the since late 2010, the ATF says.
to buy the accessory and they don’t magically turn
silencer isn’t allowed. Trusts Gun experts say that is in line starting in July. an otherwise ear-splitting gun-
allow a group of people to with the rise in overall firearm shot into a sleek whisper, the
sales during the Obama years. people say.
The new regulation signed stance, Mr. Rose of Sterling “They reduce the noise by
Surge in Demand by Attorney General Loretta Arsenal said that all but three 20 to 35 decibels,” said Knox
Number of registered Lynch on Jan. 4, part of the of the roughly 2,000 of his Williams, the president of the
gun silencers in the U.S. administration’s overhaul of customers in 2015 used trusts American Suppressor Associa-
firearm background checks, to buy silencers. tion. “With a silencer, a shot-
800 thousand adds hurdles to setting up a le- “People are staring down gun blast emits the noise level
gal trust. Starting in July, the significantly more hurdles on of a jet engine.”
members in a new trust must setting up a trust, so they’re Gun-control advocates say
600 submit fingerprints and photos racing to beat the deadline,” that people looking to muffle
to federal authorities, and un- said Dave Matheny, owner of those sounds should have to
dergo a full federal back- the Silencer Shop in Austin, pass a simple background Patek Philippe
400 ground check. Texas, based on dozens of con- check. NAUTILUS | REF. 5726/1A
Gun owners object to the versations with customers. He “To state the obvious, [a
rule, saying that because si- said that silencer sales are background check provides
lencers help reduce the dam- “two or three times” what they nothing] to worry about for
200
age to shooters’ ears, the de- normally would be at this guys who have no history of
vices shouldn’t be made harder point in January, “well over violence to hide,” said Ladd
to get. Gun-control advocates 6,000.” In a normal month, Everitt, a spokesman for the
0 say that loud shots can warn said Mr. Matheny, he might Coalition to Stop Gun Violence,
March April March Feb. those near a mass shooting or sell 3,000 silencers. a Washington, D.C., gun-con-
2012 ’13 ’14 ’15 THE PATE PHILIPPE BOUTIQUE AT FIFTH AVENUE AND 57TH STREET
crime scene, and silencer pur- Owen Miller, director of trol group. ON THE MEZZANINE 212 605 4036 | TIFFANY.COM
Source: U.S. Department of Justice chases should require a back- sales at Gemtech, a large si- —Joe Palazzolo
THE WALL STREET JOURNAL. ground check. lencer maker based in Boise, contributed to this article.
A4 | Friday, January 29, 2016 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X **** THE WALL STREET JOURNAL.
Trump Extends Lead in Early States

REPUBLICAN PRIMARY
HHHHH Ad Claims Trump
CAMPAIGN Backs Amnesty Plan
BY JANET HOOK
Trump on Top WIRE The latest TV ad broadside
against Republican presidential
Donald Trump is dominat- Donald Trump holds a commanding lead among GOP presidential candidates in early state contests, while HHHHH front-runner Donald Trump fea-
ing the GOP presidential field Democratic candidate Hillary Clinton is in a closer race with Bernie Sanders, WSJ/NBC News/Marist Poll shows. tures footage of him backing cit-
in the first three states to vote IOWA CAUCUSES izenship for undocumented im-
in the 2016 campaign, includ- migrants after his campaign
ing in Iowa where he has ex-
Iowa New Hampshire South Carolina Governor Praises launched and accused him of
tinguished the lead once held REPUBLICAN REPUBLICAN REPUBLICAN Trump, Slams Cruz profiting from illegal workers.
by Sen. Ted Cruz of Texas, a Iowa Gov. Terry Branstad con- The new 60-second ad is part
new Wall Street Journal/NBC/ Donald Trump 32% Donald Trump 31% Donald Trump 36% tinued to criticize Republican of a $1 million Iowa TV ad buy
Marist Poll finds. Ted Cruz 25 Ted Cruz 12 Ted Cruz 20 presidential candidate Ted Cruz from Our Principles PAC, an anti-
In New Hampshire and and praise Donald Trump, whose Trump group run by former Mitt
Marco Rubio 18 Marco Rubio 11 Marco Rubio 14
South Carolina, Mr. Trump lead in the state has widened Romney aide Katie Packer.
leads by double-digit margins. Ben Carson 8 John Kasich 11 Jeb Bush 9 ahead of the Feb. 1 caucuses. Mr. Trump has made staunch
In all three states he is the first Jeb Bush 4 Jeb Bush 8 Ben Carson 8 Speaking at a breakfast in opposition to illegal immigration
choice of more than 30% of Des Moines on Thursday hosted a centerpiece of his campaign.
people likely to vote in the Re- Carly Fiorina 2 Chris Christie 7 Chris Christie 2 by The Wall Street Journal, the But the ad contains footage
publican primaries or caucuses. John Kasich 2 Ben Carson 5 Mike Huckabee 2 Republican governor said he from a late June Chicago ap-
“Trump is positioned to run Rand Paul 2 Carly Fiorina 4 Carly Fiorina 1 wasn’t endorsing the real-estate pearance in which Mr. Trump ap-
the house in these first three billionaire, but added: “I will say pears to favor allowing illegal
states,” said Lee M. Miringoff, Chris Christie 2 Rand Paul 4 John Kasich 1 that a lot of people are looking immigrants a pathway to citi-
director of the Marist College Mike Huckabee 2 Mike Huckabee 1 Rand Paul 1 for leadership, and I think that zenship. “You have to give them
Institute of Public Opinion. Donald Trump has been able to a path and you have to make it
“His supporters are committed DEMOCRATIC DEMOCRATIC DEMOCRATIC effectively appeal to that con- possible for them to succeed,”
and plan to turn out.” cern, that our leaders have not Mr. Trump says in the ad. “You
The poll suggests Mr. Cruz Hillary Clinton 48% Bernie Sanders 57% Hillary Clinton 64% been effective.” have to do that.”
will be his strongest competi- Bernie Sanders 45 Hillary Clinton 38 Bernie Sanders 27 Mr. Branstad said last week The ad concludes by accusing
tor even if the senator has lost he hoped Mr. Cruz would be de- Mr. Trump of using illegal work-
Martin O'Malley 3 Martin O'Malley 2 Martin O'Malley 2
ground in Iowa. Mr. Cruz now feated in the state’s caucus be- ers to build his namesake hotels
stands in second place in all cause of his “disastrous” call for in New York and Washington.
Sources: WSJ/NBC News/Marist Poll telephone polls of 450 likely Republican and 426 likely Democratic caucusgoers in Iowa; 612 likely
three states including New Republican and and 568 likely Democratic primary voters in New Hampshire; and 718 likely Republican and 446 likely Democratic primary voters an end to the Renewable Fuel Mr. Trump’s campaign didn’t re-
Hampshire, a place that in South Carolina; margins of error: +/–3.7 to 4.7 pct. pts. Standard. That law, first passed spond to a request for comment.
doesn't typically favor Repub- THE WALL STREET JOURNAL. in 2005, requires refineries to —Reid J. Epstein
licans with his kind of conser- blend biofuels, including the
vative profile. lier this month, Mr. Cruz had Clinton only narrowly earlier The Iowa poll, conducted corn-based ethanol produced in DEMOCRATIC PRIMARY
Among Democrats, the poll led 28%-24% in Iowa, the state this month, largely on the Jan. 24-26 included interviews Iowa, into the U.S. gasoline sup-
points to a roller-coaster ride that represents his best shot strength of his appeal to inde- with 426 likely Democratic ply. Mr. Trump said he supports
Doctor Says Sanders
through the three early-voting to block the businessman. pendent voters. Now, the latest caucusgoers, for whom the the Renewable Fuel Standard. Is in Good Health
states. Former Secretary of Showing quiet improvement poll found, Mr. Sanders has a margin of error was plus or —Rebecca Ballhaus Democratic presidential candi-
State Hillary Clinton and Sen. in Iowa is Sen. Marco Rubio of double-digit lead having minus 4.6 percentage points. It date Bernie Sanders is in “overall
Bernie Sanders of Vermont re- Florida who came in third with gained among those who iden- also included 450 likely Re- TAXES good health” and can conduct
main deadlocked in Iowa; Mr. 18%—a five-point improve- tify themselves as Democrats. publican caucusgoers and had his professional and recreational
Sanders has opened a comment over the early January The poll showed how South a margin of error of plus or
Sanders Plan Would lifestyle “without limitation,” his
manding 57%-38% lead in New poll. But he has slipped in New Carolina is a formidable back- minus 4.7 percentage points. Boost Revenue 30% physician wrote in a letter made
Hampshire; in South Carolina, Hampshire, and dropped be- stop for Mrs. Clinton. Her The New Hampshire poll, Democratic presidential candi- public Thursday.
Mrs. Clinton enjoys an even hind Mr. Cruz to third place. In steep 64%-27% advantage conducted Jan. 17-23, included date Bernie Sanders’s tax pro- Sen. Sanders (I., Vt.) had his
wider 64%-27% spread. the Granite State, Mr. Trump builds on her strength among interviews with 568 likely posals would raise $13.6 trillion most recent physical exam last
The polls demonstrate that leads with 31%, to Mr. Cruz’s the minority voters who domi- Democratic primary voters and over the next decade, increasing Nov. 18, wrote Brian P. Monahan,
Mr. Trump and Mrs. Clinton 12% and Mr. Rubio’s 11%. The nate the primary electorate. 612 likely Republican primary federal revenue by more than the attending physician to Con-
remain their party’s front-run- South Carolina poll finds the She leads by 57 points among voters. The margin of error 30% to pay for an expansion in gress. His blood pressure was a
ners. While Mrs. Clinton has a same three candidates topping African-American primary vot- was 4.1 percentage points for government’s role in the econ- normal 136/81. The letter said
rougher road than Mr. Trump the GOP field. ers. the Democrats and 4.0 per- omy, according to an analysis by Mr. Sanders has “no history of
in Iowa and New Hampshire, Among Democrats, the Iowa The stakes for both candi- centage points for the Republi- the Tax Foundation. cardiovascular disease.”
South Carolina gives her a poll is little changed from the dates are higher in Iowa. cans. His proposed tax increases, Dr. Monahan wrote that Mr.
“firewall,” Mr. Miringoff said. neck-and-neck finish found “If Clinton carries Iowa, she The South Carolina poll, which would dwarf those of Hil- Sanders, who turned 74 last
The Iowa poll found, with earlier this month. Mrs. Clin- can absorb a defeat to Sanders also conducted Jan. 17-23, in- lary Clinton by a 27 to one mar- September, has been treated for
less than a week before Mon- ton drew 48% to Mr. Sanders’s who has a home-field advan- cluded interviews with 718 gin, is roughly the opposite of a gout, high cholesterol and the
day’s caucuses, that Mr. Trump 45%. Former Maryland Gov. tage in New Hampshire, and likely Republican primary vot- $12 trillion tax cut proposed by painful intestinal inflammation
is leading Mr. Cruz by Martin O’Malley, remains in then move on to South Caro- ers and 446 likely Democratic Republican front-runner Donald called diverticulitis. The senator
32%-25%, after weeks of pum- the low single digits in all lina,” said Mr. Miringoff. “But primary voters. The margin of Trump, according to the analysis is described as 6 feet tall, 179
meling his rival by questioning three states. if Sanders carries Iowa and error was 3.7 percentage by the Tax Foundation, whose pounds, as not using tobacco,
the Canadian-born senator’s New Hampshire is a grow- then New Hampshire, this con- points for the Republicans and board includes former Republi- and as using alcohol “infre-
eligibility to be president, his ing bastion of support for test will, indeed, be a mara- 4.6 percentage points for the can members of Congress. quently.”
personality and character. Ear- Sanders, who had led Mrs. thon.” Democrats. —Richard Rubin —Thomas M. Burton
Music. Sports. Entertainment. News.
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Without Front-Runner, Issues Stand Out

BY GERALD F. SEIB in particular, has shown in the
past week that he was prepar-
Donald Trump missed ing for a more frontal and sus-
Thursday night’s Republican tained assault. Indeed, Mr.
presidential debate, and a Cruz’s stump speech in Iowa
funny thing happened: A seri- in recent days has become al-
ous conversation broke out. most entirely an indictment of
The conversation was, Mr. Trump’s conservative cre-
among other things, about dentials, largely implicitly but
what it would take to ensure sometimes explicitly.
American security in a time of Mr. Cruz has been urging
Islamic State terrorism, what conservatives in Iowa: Ask the
it means to be other candidates where they
ANALYSIS a conservative have been in the fight against
in the mixed-up abortion, against gay mar-
environment of riage, against the Affordable
2016 and, most heatedly, about Care Act and for gun rights. In
what to do with illegal immi- each case, the message has
grants. been that Mr. Trump has been
The seven candidates who absent or, in some cases, on
did show up argued with one the other side.
another, pointedly and occa- But none of that was
sionally angrily but rarely on hashed out on Thursday night.
personal terms. Significant Instead, the absence of Mr.
differences emerged, which is Trump seemed to open the
CHARLIE NEIBERGALL/ASSOCIATED PRESS

what is supposed to happen in way for a detailed debate on,
debates. among other things, immigra-
The consensus second-rank- tion. The Trump position on
ing contender, Sen. Ted Cruz, that subject is simple: Build a
had to explain why there was wall to stop immigrants from
no inconsistency between his crossing the Mexican border.
votes against defense budgets Messrs. Rubio and Cruz and
and his fiery rhetoric about Jeb Bush, a former Florida
sending waves of American governor, all had to wrestle
bombers to attack Islamic with a subject that has vexed
State forces in Syria and Iraq. From left, Sen. Ted Cruz, Sen. Marco Rubio and former Florida Gov. Jeb Bush during Thursday’s Republican presidential debate. each of them: their evolving
Sen. Marco Rubio tried to positions on what to do about
sound the toughest notes on argue less with his Republican undisputed front-runner, Mr. At another point, upon as- have expected he would. the 11 million or so illegal im-
fighting extremists. At one competitors than to bash Pres- Trump, who stayed away in a serting that the debate moder- Indeed, such is the madness migrants. The fact is that each
point he said Islamic State ident Barack Obama and for- dispute with the debate spon- ators seemed to be egging on of Campaign 2016 that Mr. of them has shifted ground on
forces “want to trigger an mer Secretary of State Hillary sor, Fox News. He wasn’t for- other candidates to attack Trump may have suspected the subject and is trying to
apocalyptic Armageddon Clinton, saying they have un- gotten, to be sure. At the out- him, Mr. Cruz declared, in jest: that by skipping the debate he strike a more hard-line posi-
showdown” and “need to be dermined law enforcement in set, Mr. Cruz, pretending to “If you guys ask one more could still ensure the event tion amid the anti-immigrant
defeated militarily, and that the fight against domestic ter- lay out the lines Mr. Trump mean question I may have to would be entirely about him. environment of their party in
will take overwhelming U.S. ror, and continuing his cam- would have used had he been leave the stage.” Mr. Rubio fol- And beforehand, media cover- 2016.
force.” paign strategy of trying to there, called himself a “ma- lowed up: “Don’t worry, I’m age played along nicely. And on that subject, the
Sen. Rand Paul struck his show that he is the one who is niac,” and said the others were not leaving the stage no mat- But it also may be that by ghost of Mr. Trump did hover
usual notes warning that it is ready to go after the other “stupid, fat, and ugly”—and ter what you ask me.” So, yes, skipping the event, Mr. Trump overhead, when Mr. Rubio
a mistake to trim Americans’ side rather than the home then declared that the Trump Mr. Trump was never far from avoided what might have been turned to Mr. Cruz and
civil liberties in pursuit of team. portion of the evening had the minds of all involved. the harshest criticism he has charged: “Now you want to
more security. New Jersey Missing from the conversa- been dispensed with, and the But he didn’t dominate the faced so far in his unconven- out-Trump Trump on immi-
Gov. Chris Christie chose to tion, of course, was the now- conversation could commence. night from afar, as he may tional run for office. Mr. Cruz, gration.”
GOP Trump Seeks to Win Over Veterans

two senators—both sons of
Cuban immigrants—flared
into more personal terms as
they accused each other of
Continued from Page One misrepresenting their own BY BEN KESLING
Trump held an event of his views.
own just a few miles away, “This is the lie that Ted’s Donald Trump spurned the
which he billed as a fund- campaign is built on…that he’s televised Republican presiden-
raiser for veterans organiza- the most conservative guy,” tial debate Thursday night for
tions. said Mr. Rubio, who has been his own event, where he said
The split-screen political arguing that Mr. Cruz’s views he raised $6 million for veter-
moment was an apt metaphor on immigration have not al- ans causes.
for the state of the 2016 Re- ways been as hard-line as he The move earned him a loud
publican race. Mr. Trump has now makes them out to be. megaphone, as several national
propelled himself into a politi- “Now you want to trump cable networks broadcast the
cal class of his own, breaking Trump,” referring to Mr. event live, but was met with
conventional campaign rules Trump’s hard-line immigra- skepticism by several advocacy
and speaking to voters outside tion views. “The truth is, Ted, groups seeking to illuminate
conventional media. throughout this campaign an issue that has gotten scant
“I didn’t want to be here,” you’ve been willing to say or attention in the campaign.
Mr. Trump said as he took the do anything in order to get The Wounded Warrior Proj-
stage at Drake University for a votes.” ect, which the campaign
rally to raise money for veter- Mr. Cruz responded that seemed to reference as a bene-
T.J. KIRKPATRICK/BLOOMBERG NEWS
ans. “I wanted to be about Mr. Rubio was “very charm- ficiary when it announced the
five minutes away.” ing, he is very smooth,” but fund-raising, has no affiliation
The two-hour showdown that he abandoned conserva- with the businessman, accord-
was the seventh official GOP tive principles that he ran on, ing to a spokeswoman, and as
debate. With seven candidates while Mr. Cruz did not. of late Thursday hadn’t coordi-
on the stage, it was the small- On national security, the nated any fundraising efforts
est debate yet, giving candi- Florida senator, who has tried with him.
dates more airtime than in to position himself as the Paul Rieckhoff, chief execu-
earlier debates that featured hawkish candidate in the field, tive of the Iraq and Afghani-
as many as 11 candidates. accused Mr. Cruz of backing stan Veterans of America, a Supporters of Donald Trump gather for his campaign event across town from the GOP debate Thursday.
The smaller crowd of can- federal budgets that would leading advocacy group, said
didates allowed the modera- have cut military spending—a the Trump campaign hadn’t treated better than our vets,” build hospitals but doesn’t say Thursday hadn’t devoted much
tors to drill down more than charge Mr. Cruz has denied. approached the group, which he said, and promised to re- how he’s going to do it,” said time to veterans issues and the
ever before on their biggest Painting a graphic picture of he said would turn down any form the Department of Veter- Garry Augustine, executive di- VA, the second-largest depart-
vulnerabilities. For Mr. Cruz, the Islamic State terrorist Trump donations. ans Affairs. rector of the Disabled Ameri- ment in the federal govern-
it was the suggestion that he group, Mr. Rubio said, “This “We need strong policies Republican contenders Mike can Veterans. ment behind the Defense De-
might not be the most elect- group needs to be confronted from candidates, not to be Huckabee and Rick Santorum Sam Clovis, a senior adviser partment. The VA was
able candidate because he was and defeated. … That will take used for political stunts,” Mr. joined Mr. Trump at the event with the Trump campaign who upended two years ago after
so unpopular with his col- overwhelming U.S. force.” Rieckhoff said in a tweet after they took part in an early deals with veterans, said veteran audit confirmed improper
leagues in Washington. Mr. Bush criticized his Wednesday. Mr. Rieckhoff Des Moines debate for lower- ans issues are “front and cen- appointment-scheduling proce-
home-state rival, Mr. Rubio, added that Trump supporters polling candidates. ter with our campaign,” adding dures and efforts to hide long
for opposing President Barack bombarded the group’s phone Mr. Trump on his website that Mr. Trump has “done a lot wait times across the VA
As candidates Obama’s plan to launch mili- lines Thursday, upbraiding has proposed a number of for veterans and he employs a health system.
sparred in the debate, tary action in Syria in 2013. IAVA for refusing funds. sweeping overhauls for the VA, lot of veterans.” “When we hear every de-
Mr. Rubio defended his vote The Trump campaign ap- including increasing support Though Mr. Trump hasn’t bate,” said Sherman Gillums,
Mr. Trump held an on the grounds that the strike peared to have recently rede- for veterans suffering from rolled out a detailed descrip- executive director of the Para-
event of his own. was aimed at punishing Presi- signed a veterans fundraising post-traumatic stress disorder tion of how he would imple- lyzed Veterans of America,
dent Bashar al-Assad for using site, pledging that 100% of all and helping female veterans. ment changes at the VA, Mr. “It’s always stark to us it’s not
chemical weapons, not at the donations would go to veter- But his policy plan also seeks Clovis said the policy plan on ever discussed and it’s glossed
“You are exactly right that Islamic State terrorist group ans. But a disclaimer says do- to move toward privatizing the his website is extensive. over.”
I am not the candidate of ca- now viewed as a top threat. nations would be routed VA, something veterans groups Meantime, Mr. Trump was Mr. Gillums said the only
reer politicians in Washing- Sen. Rand Paul of Kentucky, through the Donald J. Trump have said could ultimately getting support from some candidate he has met is Mr.
ton,” Mr. Cruz said, pausing who didn’t appear in the last Foundation, a nonprofit that harm veterans who depend on voters in Des Moines. Trump, who he said seems re-
for applause and dropping the debate, reprised his role as has little record of having do- the department’s specialized “Trump stepping out of the sults-driven.
names of several of his most the leading spokesman for the nated to veterans. treatment and hospitals. mainstream and addressing Veterans service organiza-
prominent conservative sup- libertarian wing of the GOP. Mr. Trump said late Tues- Some major veterans advo- veterans, I think that’s won- tions agree the VA’s complex-
porters, including the popular He criticized other Republi- day he wouldn’t participate in cacy groups said Mr. Trump derful,” said Patricia Kloster- ity makes it hard for someone
Rep. Steve King of Iowa. cans for not being as vigilant the Fox News-moderated de- hasn’t proposed tangible ac- man, a 60-year-old mother of a to jump in and understand a
For Mr. Rubio, the scrutiny as he is in opposing national bate in Des Moines, Iowa, be- tion on veterans issues. Marine Corps veteran. system in the midst of a big
was intense on his past sup- surveillance programs. cause of a long-standing dis- “Trump says he’s going to Presidential debates before overhaul.
port for a broad immigration Mr. Cruz, who is second to pute with moderator Megyn
bill that provided a path to Mr. Trump in Iowa polls, elic- Kelly. His campaign said
citizenship for people in the
U.S. illegally.
ited groans from the crowd
when he took issue with the
Wednesday it would instead
hold the veterans event.
Debate Absence Isn’t Likely to Crimp Fox’s Wallet
Former Florida Gov. Jeb attacks other candidates di- Mr. Trump took the stage Since Donald Trump said called scatter market, where ad ads in the advance “upfront”
Bush attacked him for backing rected his way and blamed the Thursday night to a standing this week that he would skip time is sold closer to the airing market, where guarantees are
away from the bill, which Mr. moderators’ questions. ovation 15 minutes after the Thursday night’s Fox News de- of a program instead of in an part of deals, a person familiar
Rubio had asked him to sup- “The last four questions Fox News debate started bate, the Republican presiden- advance deal, according to ad with the situation said.
port. have been ‘Rand, please attack across town. tial candidate has been taunt- buyers. In a statement, Fox News
“He led the charge to fi- Ted,’ ‘Marco, please attack “I didn’t want to be here, I ing Fox on social media, Such deals generally don’t said, “The debate is completely
nally fix this immigration Ted,’ ” he said, a revision of a wanted to be across town,” he suggesting that his absence carry a ratings guarantee, sold out. No rates have
problem, then he cut and run counter he used effectively in said to applause. He then listed would hurt the network’s rat- meaning a TV network isn’t on changed and there are no ad-
because it wasn’t popular a prior debate. “If you guys a litany of people who he said ings and advertising revenue. the hook to compensate mar- vertisers who have backed
among conservatives,” Mr. ask one more mean question, donated to his nonprofit over But it turns out Mr. Trump’s keters with free ad time if out.”
Bush said. I may have to leave the stage.” the past day and said he had absence, while a public-rela- viewership falls short of what Fox News is owned by 21st
Mr. Cruz weighed in to ac- Mr. Rubio interjected mo- raised nearly $6 million for tions scrap for Fox, won’t likely was expected. Century Fox, which was part
cuse Mr. Rubio of supporting ments later: “Don’t worry, I’m veterans, though he gave no have a significant financial im- There are some risks for of the same company as Wall
“amnesty because he thought not leaving the stage, no mat- details on how the money was pact on the channel or its ad- Fox. Big buyers can sometimes Street Journal-owner News
it was politically advanta- ter what you ask me.” raised or when it would be col- vertisers, ad buyers said. negotiate to have a guarantee Corp until 2013.
geous.” —Patrick O’Connor lected and distributed. Fox sold much of Thursday included in their scatter deals. —Suzanne Vranica
The dispute between the contributed to this article. “Illegal immigrants are night’s ad inventory in the so- And some advertisers did buy and Joe Flint
A6 | Friday, January 29, 2016 * **** THE WALL STREET JOURNAL.
WORLD NEWS
Zika Virus Spread Prompts Global Alarm
Infections ‘explosively’
Viral Growth Airlines Show
propagating, U.N. health Since it was confirmed in May in Brazil, where it may be linked to birth defects, the Zika virus has taken hold in 24 countries or territories.
agency says; possible Cumulative Brazilian 4,000 U.S.
Some Lenience
link to birth defects cases of microcephaly, Active transmission
In recent days, several U.S.
a birth defect that of Zika virus
airlines have said passengers
may be linked to 3,000
The World Health Organiza- DOMINICAN REPUBLIC planning travel to destinations
tion will convene an emer- Zika virus infection* MEXICO where Zika has spread can
HAITI PUERTO RICO
gency committee in Geneva on 2,000 change to alternative destina-
HONDURAS VENEZUELA
Monday to discuss the mos- G U AT E M A L A tions, switch travel dates or
quito-borne Zika virus, which G U YA N A cancel flights for refunds. In
E L S A LV A D O R SURINAME
the organization’s head said is 1,000 PANAMA most cases, the travelers must
COLOMBIA FRENCH be pregnant or attest to trying
GUIANA
By Reed Johnson to become pregnant in order to
in São Paulo, Betsy 0 ECUADOR exercise those options.
McKay in Washington Delta Air Lines Inc. said
2015 2016 BRAZIL
and Brian Blackstone customers can make fee-
in Zurich Number of countries/ 24 BOLIVIA waived changes to future tick-
territories experiencing ets until Feb. 29. United Conti-
Pacific
spreading “explosively” and active transmission nental Holdings Inc. said
O cean P A R A G U AY
which many doctors and of Zika virus, 18 customers should contact its
health officials believe is cumulative total call centers to rebook or re-
linked to an unprecedented Others (not shown) ceive refunds. American Air-
outbreak of babies born with 12 Barbados lines Group Inc., among the
small heads in Brazil. Cape Verde largest U.S. carriers to Latin
Guadeloupe Atlantic
“The level of alarm is ex- America, this week expanded
6 Martinique O cean
tremely high,” WHO Director- the policy to include pregnant
General Margaret Chan said in St. Martin women and their companion
remarks to the public-health Samoa travelers, who still would need
0
agency’s executive board. U.S. Virgin Islands a doctor’s note related to the
“Questions abound. We need 2015 2016 woman’s pregnancy.
to get some answers quickly.” *Reporting became mandatory on Oct. 22; cases are suspected Sources: Brazilian Health Ministry; CDC; WHO THE WALL STREET JOURNAL. —Susan Carey
WHO’s announcement un-
derscores the speed with plans to the region. jection he said was based on isn’t proven, medical authori- 23 countries and territories, where the virus is circulating,
which a virus that began as an More than 20 countries in mathematical models. That ties believe Zika can be trans- most in the Americas, where according to the latest CDC
obscure tropical malady af- the hemisphere, including number would include both mitted from pregnant women Zika is circulating. It has also data. An additional 19 cases
flicting Africa and then several Mexico, Panama, El Salvador, people who develop symp- to fetuses through the placenta. urged women who are trying have occurred in Puerto Rico
remote Western Pacific islands Colombia, Venezuela, as well toms, and the many more who “We don’t have all the i’s to become pregnant to talk and one in the U.S. Virgin Is-
has transformed into a major as the U.S. territories of don’t. dotted and all the t’s crossed,” with their doctors about any lands, the CDC said.
international health concern, Puerto Rico and the U.S. Virgin More puzzling and worry- said Dr. Peter Hotez, a tropical planned trips, and to protect “The virus is spreading
particularly in the Americas. Islands, have registered cases ing to health officials is that disease expert at Baylor Col- themselves from mosquitoes if throughout the Americas and
The virus itself is usually of Zika, according to the U.S. Brazil uniquely has registered lege of Medicine in Houston. they do go. we expect more countries to
mild, with only about one in Centers for Disease Control thousands of suspected micro- “But here’s what we know: We Pregnant women are likely be affected,“ said Dr. Anne
five people who are infected and Prevention. Many are cephaly cases. In 2014, the know we can isolate the virus most at risk during their first Schuchat, the CDC’s principal
developing symptoms like a scrambling to contain the year Zika is believed to have from babies with microceph- trimester, when brain develop- deputy director. “We have not
rash and fever. But it is the spread by taking steps like ex- arrived in Brazil, the country aly. We know we can isolate ment is occurring, the CDC yet seen local transmission of
possible link to babies born panding mosquito spraying recorded 147 microcephaly the virus from the amniotic says, but adds there is some Zika in the continental U.S.”
with underdeveloped skulls programs. cases. Since October, the coun- fluid from pregnant women.” evidence the risk persists into U.S. outbreaks are possible
and brains, a condition known No country has been hit try has reported 4,180 sus- The CDC found evidence of the second trimester as well. and “even likely,” she said,
as microcephaly, that is creat- harder than Brazil, where pected cases and the death of the Zika virus in the placentas No country outside Brazil since its principal carrier, the
ing anxiety for governments health officials estimate as 70 babies. Some of those re- of two miscarried fetuses and has reported an increase in Aedes aegypti mosquito, is
and pregnant women across many as 1.5 million people ported cases have been found the brains of two babies who microcephaly cases that may common in the U.S. South. But
Latin America. may be infected by the Zika vi- not to be microcephaly, and were born with microcephaly be linked to the virus. they are expected to be limited
El Salvador’s government rus, the largest outbreak ever very few have been positively and died within a day. Brazil- In the U.S., 31 cases of Zika in scope, she added, since U.S.
has asked women to avoid get- recorded. A WHO official said linked to Zika. Most cases are ian doctors have made similar infections have been reported urban areas aren’t as densely
ting pregnant until 2018. In that Zika could infect three still under investigation. findings. in 11 states and the District of populated as elsewhere in the
the U.S., some expectant million to four million people Although the link between The CDC has warned preg- Columbia since 2015 in travel- Americas and the U.S. has
mothers have canceled travel a year in the Americas, a pro- the virus and microcephaly nant women to avoid travel to ers returning from countries “stronger mosquito control.”
U.S. General Urges Caution in Afghan Troop Drawdown

BY GORDON LUBOLD where we are building on the State fighters moving into Af-
experience we have,” he said. ghanistan.
WASHINGTON—The Army Gen. Nicholson noted that Until this month, the U.S.
general in line to take over as any decision to slow the U.S. couldn’t mount such attacks.
the new U.S. and allied com- withdrawal and maintain a Gen. John Campbell, the cur-
mander in Afghanistan said larger force in Afghanistan, or rent commander of U.S. and
that as the security there wors- to begin to redeploy those NATO forces in Afghanistan,
ens the number of American forces, must occur in coming has estimated that there are as
forces should be reduced only if months—not toward the end of many as 3,000 Islamic State
conditions allowed. the year. fighters inside Afghanistan.
Lt. Gen. John Nicholson, “These decisions take time. Gen. Nicholson was also
nominated to be the new com- Even if a drawdown is going to asked by senators Thursday
mander in Afghanistan, ap- occur late in the year, we need whether the U.S. had sufficient
peared before the Senate to start setting the conditions air power to fight militants in-
Armed Services Committee on for that earlier,” Gen. Nicholson side Afghanistan. The number
Thursday. Gen. Nicholson ap- said. “So, yes, sir, I agree with of bombing missions has
peared poised to win confirma- your assessment. We need to dropped over the past several
ABDUL KHALIQ/ASSOCIATED PRESS
tion and could be headed to Af- have this discussion sooner years, as similar missions have
ghanistan by March. rather than later.” increased in Iraq and Syria.
Gen. Nicholson said he con- The Obama administration’s Gen. Campbell is discussing
curred with the committee’s plan for Afghanistan was to the issue with his superiors,
chairman, Sen. John McCain have reduced to about 5,500 and Gen. Nicholson said he
(R., Ariz.), and others who the number of American forces didn’t want to insert himself
raised alarm about recent at- in Afghanistan by this past De- into the discussion until he has
tacks by Taliban insurgents. cember. But a resurgent Taliban been confirmed. But he did say
“The view of many of us is and al Qaeda have forced Presi- that he thought that “gap”
that the security situation in Afghan forces patrolling last month in Helmand province, where fighting with the Taliban has been fierce. dent Barack Obama to extend should be addressed and that
Afghanistan has been deterio- the U.S. troop deployment. he would do so if confirmed.
rating, rather than improving,” troops who will remain in Af- by the end of this year, but within his first three months on Taliban insurgents have Defense Secretary Ash
Mr. McCain said. ghanistan after this year. There many senior military officers the job and make a recommen- staged prominent attacks of Carter has signaled in recent
“Sir, I agree with your as- are currently about 10,000 U.S. have said privately that the U.S. dation of how many of those late and the U.S. announced weeks that the U.S. should
sessment,” Gen. Nicholson re- troops and a further 6,000 al- shouldn’t reduce its force there. troops should remain in Af- last week that it now has the think about a longer-term com-
plied. lied forces. Gen. Nicholson told senators ghanistan after this year. authority to take offensive mili- mitment for troops in Afghani-
A top issue facing command- Under current plans, the U.S. he would complete an assess- “I think after the initial 90 tary action not just against al stan beyond the next couple of
ers is the number of American force is to drop to around 5,500 ment of the security situation days, I’ll have a good sense of Qaeda but also against Islamic years.
South Korea Warms Japan Unveils Stealth Fighter Prototype

To U.S. Missile Defense BY ERIC PFANNER
AND CHIEKO TSUNEOKA
project as an equal partner,
Japan has to offer knowledge,
BY ALISTAIR GALE recently met with senior experience or technolo-
TOMOHIRO OHSUMI/BLOOMBERG NEWS
AND GORDON LUBOLD South Korean officials said a NAGOYA, Japan—Japan un- gies worthy of an equal part-
consensus appeared to be veiled its first radar-evading ner,” said aerospace analyst
South Korea is leaning to- forming in Seoul. “Behind the stealth aircraft, aiming to close Yoshitomo Aoki.
ward introducing an advanced scenes, it looks like Thaad is a gap with neighbors such as A postwar policy of paci-
U.S. missile defense system to close to a done deal,” this per- China and Russia, which have fism, including restrictions on
guard itself against threats son said. been flying fighter planes weapons exports, made it dif-
from North Korea following A spokesman for South Ko- equipped with the technology ficult for Japan take part in
Pyongyang’s recent nuclear rea’s presidential office said for more than five years. international partnerships
test, a bulwark strongly op- Seoul was considering all op- Confronted with regional such as the Joint Strike
posed by China. tions on missile defense based challenges such as China’s Fighter, which led to the de-
Current and former Ameri- on the national interest. building of artificial islands in The X-2 may help Japan catch up with China and Russia, which velopment of Lockheed Mar-
can officials who have recently Such a deployment would the South China Sea and North have been flying stealth fighters for more than five years. tin Corp.’s F-35.
spoken with top South Korean put a sophisticated piece of Korea’s nuclear device testing Mr. Abe’s government in
policy makers say the country U.S. military hardware close to program, Japan’s Prime Minis- cials said the plane could per- build its own plane, they say, 2014 eased the ban on exports
hasn’t decided yet whether to China and potentially raise ter Shinzo Abe has eased post- form its first test flight as Japan may be signaling its in an effort to boost the com-
adopt the system that the U.S. friction with Beijing. war restrictions on the coun- early as mid-February. hopes of joining the U.S. or petitiveness of Japan’s arms
has offered but that informal The radar system’s cover- try’s military and is trying to At 46 feet in length, the ¥40 other allies in developing a industry.
talks between Washington and age would extend beyond bolster its limited weapons- billion ($340 million) red and fighter through an interna- The X-2’s stealth features in-
Seoul had increased recently. North Korea into China’s building capabilities. white-painted X-2 is smaller tional partnership—a way for clude a special coating on the
One American official said north. The move would en- In the latest move, the Min- than a standard jet fighter. It allies to develop ever more ex- canopy that houses the pilot,
there was a strong chance the hance Washington’s military istry of Defense showed off a is unarmed and its engines are pensive weapons systems. By as well as a carbon-fiber com-
U.S. could soon announce that profile as it seeks to form a test aircraft called X-2 in a underpowered. Analysts say it joining the small club of coun- posite material that absorbs
the two countries are in nego- comprehensive missile defense heavily guarded hangar at a would take many years for tries with stealth technology, radar waves, said Hirofumi Doi,
tiations over the Terminal network in Northeast Asia factory here that is operated Japan to develop it into an ac- including the U.S., Russia and program manager at the Minis-
High Altitude Area Defense with an existing Thaad in by Japan’s biggest military tual warplane. China, Japan can show that it try of Defense’s procurement
system, or Thaad. Guam and another potentially contractor, Mitsubishi Heavy But that might not be the brings something to the table. agency, in an interview before
A former U.S. official who in Japan. Industries Ltd. Ministry offi- point. Rather than aiming to “In order to participate in a the Thursday unveiling.
WORLD NEWS
Slowing China Chills German Export Machine Man Held

At French
BY NINA ADAM DAX stock-market index have ing growing orders.
Mixed Bag Among them is Herren-
FRANKFURT—German ex-
ports to the important Chinese
Germany's exports to China fell ...but China's demand for
672 subsidiaries in China, ac-
cording to the Munich-based
consultancy EAC.
knecht AG from southern Ger-
many, which makes tunnel-
Disneyland
in 2015*... German goods varied widely
market are suffering their among sectors. The ease of finding Chinese boring equipment. Founder BY NICK KOSTOV
sharpest drop in a quarter of a customers varies greatly by and Chairman Martin Herren- AND INTI LANDAURO
century, casting a shadow over Russia† –26.5% Metals –16.2% sector. In heavy industry, it knecht said his China business
Europe’s biggest economy and China –4.3% Autos and parts –15.6% can be close to impossible. remains solid and he expects it PARIS—A man was de-
showing the global impact of “China is suffering from to stay that way, despite grow- tained at Disneyland Paris af-
China’s slowdown. Brazil –3% Machinery –7% massive overcapacities,” said ing competition from Chinese ter two handguns were found
With new orders from China Eurozone 5.5% Olaf Stalfort, head of sales and companies in “simpler, stan- in his luggage, reviving secu-
Clothing 10.1%
and other emerging economies marketing at SMS group in dard-tunnel projects.” rity worries in a country al-
sagging, German businesses U.K. 13.7% Pharmaceuticals 52.4% Düsseldorf, which builds steel At DELO, a company near ready on edge since the No-
fear the bad news is only be- plants and rolling mills. “The Munich that makes adhesives vember terror attacks in Paris.
U.S. 19.4% Food 58.7%
ginning, data and surveys re- consolidation of the Chinese for electronic devices, exports Police said they took the
leased in recent days suggest. Total 6.7% steel industry is still ahead of to China have risen about 10% 28-year-old man into custody
German exports to the U.S. us,” he said. “Let’s face it. We’ll since April. “The Chinese would at around 2 p.m. on Thursday
and many other markets are *Figures represent January-November 2015, change from a year earlier. probably have to downsize.” rather cut back on food than when he tried to pass through
still growing, cushioning the †Hit by international sanctions Some Chinese companies make do without their smart- security at the park’s New
Source: German Federal Statisical Office THE WALL STREET JOURNAL.
impact of China. But with much have started to dump unused phones,” said DELO managing York Hotel. The man, a French
of Europe still licking its machinery on the market, fur- partner Sabine Herold. national who wasn’t known to
wounds from the eurozone November, compared with they expect exports to weaken ther hurting German compa- Ms. Herold said compla- law enforcement, was carrying
debt crisis, business confidence 2014, the German statistics ser- further, according to surveys nies’ sales and profit margins. cency about China’s economy a copy of the Quran and had
in Germany is vulnerable to vice said this month. Barring an by the Munich-based Ifo eco- Bright spots remain. Many would be a mistake, and her booked a room, police said.
continued cooling in Asia. improbable spike in December, nomics institute and the Euro- German companies in con- company is trying to expand “During the routine secu-
“The overall situation in German exporters took a bigger pean Commission. sumer and service sectors say elsewhere. “We are targeting rity screening checkpoint at
China is depressed,” said Ul- hit than during the 1997 Asian “For years, German export- they are benefiting from Vietnam, Indonesia, the Philip- one of our hotels, weapons
rich Reifenhäuser, a manage- financial crisis, when exports to ers knew only one direction in China’s rapidly growing middle pines and Thailand,” she said. were discovered in guest lug-
ment-board member at ma- China fell 2.4%. China: that was up. Those days class. Engineering companies But it is the U.S. that is do- gage through our X-ray ma-
chinery maker Reifenhäuser Above all, capital-goods are gone,” said André Schwarz, that can help China improve ing most to compensate for chine,” said Disneyland Paris
Group in North Rhine-West- sales to Chinese factories are spokesman for the BGA federa- its infrastructure and relieve China’s stumble. German ex- spokesman François Banon.
phalia. “I see very few orders down, as overcapacity there tion of German exporters and traffic pressures, and environ- ports to the U.S. rose just over Paris prosecutors said they
in the near future.” takes its toll on investment wholesalers. mental-technology companies 19% from January to Novem- weren’t treating the case as
German exports to China fell spending. And German and The stakes are high for Ger- whose equipment can help re- ber from a year earlier, ac- terrorism. Walt Disney Co.
by 4.3% from January through other European companies say many. The 30 companies in its duce pollution, are also report- cording to the statistics office. said it wasn’t shutting any
parts of its attraction, located
just east of Paris. It attracts
JAPAN and-awe” strategy. He denied

in recent days that the bank
was considering negative
rates.
buying program may have
reached the limits of its capac-
ity and effectiveness.
Shuichi Ohsaki, a rates
over 14 million visitors a year.
The specter of an attack,
even a thwarted one, against
Disneyland could spark re-
Continued from Page One Mr. Kuroda has maintained strategist at Merrill Lynch newed worries about the secu-
joining the European Central that three years of aggressive Japan, said the move repre- rity of public places in France
Bank which first did so in quantitative easing have had sented a “change of direction” in the wake of the deadly ter-
2014. The central banks of “intended effects,” but it has for the BOJ, and reflected a de- ror onslaught in November by
Sweden, Denmark and Switzer- failed to produce the targeted cision to focus on rates instead Islamic State operatives that
MATTHEW LLOYD/BLOOMBERG NEWS

land also have negative inter- 2% inflation. of quantitative easing. left 130 people dead in Paris.
est rate policies. Mr. Ohsaki said the BOJ Most of the terrorism at-
While the Fed is unlikely to likely wanted to take a page tacks to hit the country in the
join the BOJ and ECB in set-
The unexpected out of the playbook of the Eu- past year have come against
ting negative interest rates any move showed the ropean Central Bank, but the relatively soft targets, includ-
time soon, it signaled this bigger gap between lending ing the offices of a satirical
week that a further imminent
BOJ’s resolve to fight and deposits rates at Japanese newspaper, restaurants and a
rate hike is unlikely. global headwinds. banks might limit its effective- concert hall. In response, the
The yen fell as much as 2.1% ness in Japan. French government has de-
following the announcement, The central bank said it cut Bank of Japan Gov. Haruhiko Kuroda has faced pressure to take action. ployed heavily armed soldiers
hitting 121.33 to the dollar. The Mr. Kuroda has blamed fall- the deposit rate it pays on to patrol public areas. Offi-
Nikkei Stock Average surged ing oil prices for the low infla- cash parked at the BOJ by time spectrum to stimulate in- first time with a negative in- cials have been quick to close
more than 3% before reversing tion and pointed to a price in- commercial banks in excess of flation, the bank said. It also terest rate in Japan. and search Paris schools after
to trade 0.7% lower. dex that excludes energy legally required reserves, to said it would cut the interest The bank left its asset pur- recent bomb threats. France’s
The introduction of nega- prices as evidence that under- minus 0.1% from the previous rate further into negative ter- chase program unchanged at railroads have begun using X-
tive rates once again signaled lying inflation is strong. plus 0.1%. ritory “if judged as necessary.” ¥80 trillion ($673 billion) a ray machines and metal detec-
BOJ Gov. Haruhiko Kuroda’s Many economists have be- The goal was to push down The vote count was 5-4 in year. The board voted 8-1 in fa- tors on some major train
willingness to pursue a “shock- gun speculating that the asset- borrowing costs across a broad favor of experimenting for the vor of the decision. lines.
Capital Creates a
Fresh Perspective
Can business contribute to a sustainable future? Absolutely. Morgan Stanley
helped Unilever point the way forward, raising £250 million ($415 million)
with a first-of-its-kind green bond offering. That capital went toward projects
that promote Unilever’s vision of reducing waste, water use and greenhouse
gases compared with 2008 levels. In new factories funded by this green bond,
Unilever is committed to cutting in half CO2 emissions, water use and waste.
Now Unilever can have less impact on the planet. Capital creates change.
morganstanley.com/unilever
The statements, “first-of-its-kind green bond offering,” and “Unilever’s vision of reducing waste, water use and greenhouse gases compared with 2008 levels” and “In new
factories … Unilever is committed to cutting in half CO2 emissions, water use and waste” are based on Unilever’s project selection criteria, communicated in the company’s
press release dated March 19, 2014. The exchange rate used to calculate “$415 million” was the exchange rate as published by Bloomberg on March 19, 2014, of 1.6644.
For further details and information about Unilever’s green bond issuance, please see Unilever’s press release dated March 19, 2014. © 2015 Morgan Stanley & Co. LLC.
Member SIPC. CRC 1297328 10/15.
A8 | Friday, January 29, 2016 * *** THE WALL STREET JOURNAL.
FROM PAGE ONE
SOCKS with the PT uniforms, soldiers

and sock experts say.
“Black is a more badass
color,” said Ric Cabot, chief ex-
Continued from Page One ecutive of Vermont sock firm
their closets to wear when Darn Tough. “It looks tougher.”
they’re needed. Socks have evolved in recent
Swapping to black socks can years to become more of a fash-
mean one less laundry run: no ion item. In some circles, the
need to separate colors. White classic white sock is becoming
socks also frequently feature in- outdated: Casual and formal
signia, such as Nike Inc.’s socks are now more colorful,
swoosh, which aren’t allowed, and athletes often go with black
according to the Army’s 57-page to better match their vibrant
uniform regulation and accom- gym shoes.
panying 287-page uniform guide. “The Army is a little behind
The Army is in the midst of a in the trend of moving to black
three-year process of introduc- socks,” said Patricia McHale,
ing a new black and gold PT uni- head of marketing at sock
form that matches its star maker Gold Toe, part of clothing
logo—and as more soldiers company Gildan Activewear Inc.
switch to the new, dark uni- “If you have fluorescent green
forms, their white socks have and bright orange [sneakers],
awkwardly stood out. it’s hard to match a colorful
Sgt. Maj. Eva M. Commons is sock to that.”
KIARA FLOWERS/U.S. ARMY

the Army’s uniform policy ser- Now that the Army has taken
geant major and hears feedback a step forward on sock regula-
about uniform regulations from tions, the focus is shifting from
the more than 1 million person toe to head. In the same sock
Army. survey, the Army asked three
“One of the recurring items questions on types of headgear.
was a request to be authorized Army Sgt. Maj. Dailey’s senior
to wear black socks with a PT U.S. Army soldiers run at Fort George G. Meade, Md. Regulations are changing to allow black socks to be worm with physical-training uniforms. enlisted council has also dis-
uniform,” Sgt. Maj. Commons cussed letting soldiers wear
said. “Soldiers felt that wearing idea from the start, Army Sgt. diers. Two-thirds who re- Socks and shoes are among low personnel to wear black headphones during their gym
black socks will be more com- Maj. Dailey brought it up at base sponded wanted the change. the few clothing items soldiers socks, in addition to white workouts—they are currently
plementary.” town halls around the country. “If you can affect morale by get to choose for themselves. On socks. The same order also forbidden with any sort of Army
The Army didn’t tiptoe into “Those are small details that doing small things, then why the anniversary month of their lifted restrictions on colorful uniform—but is against the idea
changing the rule, which has sometimes would be overlooked not?” said Master Sgt. Michelle enrollment, enlisted GIs get a cellphones and sneakers; previ- due to safety concerns.
been in place since 1992—the because higher-ups are dealing M. Johnson, Army Sgt. Maj. Dai- clothing allowance to replace ously only black cellphones were “It’s another item that’s been
move took ample planning. It with so many other important ley’s spokesperson. worn items and buy new ones. allowed and only black shoes brought up several times,” said
began at a simple, unrelated lun- factors,” said Pfc. Samuel Cam- And so came a special memo Black socks haven’t yet infil- could be worn with the PT uni- Sgt. Maj. Commons, the uni-
cheon in Hawaii, where Sergeant pos, who is a supply specialist at on Nov. 5 from Lt. Gen. James trated the workout routines of form. form-policy sergeant major. “It
Major of the Army Daniel A. Dai- the 369th Sustainment Brigade, McConville that modified the PT all units, but soldiers say that The Navy has allowed solid is one of the topics that is on
ley, the man assigned to darn New York Army National Guard. uniform regulations, stating that should change as more get their white or solid black socks to be the board, so to speak.”
the everyday problems of en- “If a soldier mentioned it and he “sock color choice is at the dis- allowance and hear of the new worn with PT uniforms since The process to potentially
listed men and women, was got it in, kudos to him.” cretion of the soldier.” Soldiers uniform rule. 2008. While the Army requires change that regulation hasn’t
asked by a junior-level soldier The town halls eventually are now free to wear any color The change puts the Army in socks to cover anklebones, in yet started, though, and it is un-
about the potential for wearing culminated in a uniform survey sock they want while they work step with other branches of the the Navy, low-cut socks are al- clear whether the headphone
black socks. that was sent out to a represen- out—as long as that color is military. In 2014, the Air Force lowed. movement will have a solid
Instead of stomping on the tative sample of 180,000 sol- white or black. altered its uniform policy to al- Black socks just look better footing.
SWIFT Institutional Shareholder Ser-

vices, the proxy-advisory firm,
has objected to the Swift board’s
willingness to let top executives
Share price
$24
Swift Moves
Swift Tranportation’s shares slumped last year,
forcing its CEO to pledge more of his own shares
eral for margin loans, as well as
more than 29 million shares in
complex transactions typically
called “variable prepaid forward
Continued from Page One pledge shares they own. “The di- 22 contracts” with Citigroup Inc.
to meet margin calls. Meanwhile, the company’s
tives borrow against their rectors, in a certain sense, they 20 board began buying back stock. These loan-like agreements
stakes in a company do have an obligation to imple- gave the CEO cash upfront in ex-
Mr. Moyes has pledged more ment an unwinding strategy that 18 change for his pledge to deliver
than $600 million of his hold- is not going to be detrimental to some of his shares or cash in the
ings in Swift—a quarter of the shareholders,” said Carol Bowie, 16 future. For example, on Oct. 30,
outstanding shares—as collat- ISS’s head of Americas research. Mr. Moyes pledged 3.3 million
eral for loans or in complex loan- “On the other hand, this has 14 shares to Citigroup and received
like contracts, according to secu- been going on for a while, and 12 $48.3 million in cash. Citigroup
rities filings. The trucking investors do have a legitimate declined to comment.
company’s stock tumbled 52% in question here about what took Aug. 2015 Sept. Oct. Nov. Dec. Jan. ’16 The CEO’s total shares
2015. The fall triggered margin them so long.” pledged either on margin loans
August/ Sept. 24 Oct. 30 November Nov. 4 Dec. 18 January
calls—demands to make up Mr. Moyes, who owns a con- or in the Citigroup contracts
September Swift Moyes Swift Swift says Swift's Swift buys back
shortfalls in the value of collat- trolling stake in the company he amount to more than 60% of his
CEO Jerry approves pledges buys back it sanctions board $30 million
eral—which Mr. Moyes some- founded 50 years ago, declined family’s Swift holdings. But
Moyes $100 million more shares, $70 million Moyes for extends worth of stock.
times dealt with by pledging to comment. Swift said the CEO Swift’s board counts only shares
exceeds stock extends worth of breaching deadline to Jan. 26
more Swift shares. has been working under the used for margin loans against its
company buyback, its payment stock. stock- meet stock- Moyes says he
His use of his Swift stock as board’s leadership to reduce his pledging limits for executives.
stock- first since terms for pledging pledging will ask board
margin-loan collateral has ex- shares pledged for margin loans. After reporting quarterly re-
pledging its 2010 IPO earlier limits limits to repurchase
ceeded limits set by the board, “In bringing about this reduc- sults this week, Mr. Moyes on
limits obligations $200 million
regulatory filings show. As those tion, the Board and Mr. Moyes Tuesday called for a $200 mil-
limits gradually kicked in, direc- are mindful of the need to en- more in stock. lion stock buyback and said he
tors gave Mr. Moyes additional sure that any reduction occur in Sources: WSJ Market Data Group; company filings THE WALL STREET JOURNAL. would seek board approval in
time to meet them, which could an orderly fashion,” a written February. “I believe that the
be done by moves such as reduc- company statement said. to reduce the amount of his share repurchase at these ridicu-
ing his personal debts or using Richard Dozer, Swift’s chair- pledged shares to meet the 10% lous low prices can make a lot of
collateral other than Swift man, added that “the $100 mil- cap but needed until November sense,” he told investors on a
shares. lion share repurchase plan that “to do so in an orderly fashion,” conference call.
In November and January, we, as a Board of Directors, au- according to an SEC filing. He said that the first share
Swift spent $100 million on thorized in September of 2015 The board amended its rules buyback had added four cents to
share repurchases. Then on had absolutely nothing to do so the 10% limit wouldn’t take per-share annual earnings and
Tuesday, a day after Swift dis- with Mr. Moyes stock pledging, effect until Dec. 1, 2015. that a second, larger one would
closed earnings, Mr. Moyes said or margin calls.” A company add 8 to 10 cents a share. The
he wanted the company to spend spokesman said several large company said in a written state-
$200 million more buying back shareholders had urged Swift A truck squeeze ment that its “business perfor-
shares. Swift’s stock surged 22%. last summer to consider share Overcapacity and weak de- mance continues to be strong as
At current prices, a buyback repurchases. mand have squeezed trucking evidenced by the seven-percent
of that size would retire about Swift’s board is unusually companies over the past year. In increase in revenue and eight-
9% of the stock, supporting its small, just six members. To ana- September, Swift warned it percent increase in adjusted
price and easing pressure on Mr. lysts of corporate governance, would miss its earnings targets earnings per share in 2015.”
Moyes’s margin loans. Despite board size matters: While too- for 2015 and announced its first The new buyback proposal
Tuesday’s price jump, Swift’s large boards can be unwieldy, stock-buyback plan since it went puts Swift out of step with a
stock remains down by 40% too-small boards can turn into public for the second time in consolidation trend in the truck-
from a year ago. Swift officials echo chambers and foster an ea- 2010. Swift said shortly after- ing industry, which has seen
say the buyback plan is unre- gerness among directors to get ward it would halt the expansion many of the largest companies
lated to Mr. Moyes’s stock along in the face of tough deci- of its truck fleet. seek to build revenue by acquir-
pledges. sions. In October, Mr. Moyes told ing competitors. In the call with
The Phoenix-based company the board he hadn’t reduced his analysts, Mr. Moyes said Swift
AARON J. LATHAM/ASSOCIATED PRESS
has just four independent direc- borrowings as promised. Owing had a chance in the past year to
Not the only one tors, as defined by New York to a drop in the stock price, he acquire another company for
Swift isn’t the only company Stock Exchange rules, Swift’s se- had pledged additional shares to about $500 million but con-
whose executives have struggled curities filings say. And one of meet margin calls, according to cluded that a share buyback
with loans against their shares those deemed independent, Mr. an SEC filing. More than 15% of would raise earnings more than
after price drops cut their collat- Dozer, spent years helping run a his holdings were now pledged, an acquisition, with less risk.
eral’s value. During the business that was partly owned he said, and he needed more Some analysts agree, saying
late-2008 market meltdown, by Mr. Moyes, the Arizona Dia- time to comply with the board’s repurchasing shares was a bet-
Sumner Redstone, executive mondbacks. Mr. Dozer was the limits. ter use of Swift’s capital than
chairman of Viacom Inc. and baseball team’s president from Independent directors met taking a risk with an acquisition.
CBS Corp., sold 20% of his stake 1995 until 2006, and Mr. Moyes Swift’s Jerry Moyes, here in 2009, borrowed heavily against his shares. and sanctioned Mr. Moyes, say- “People agree with the move re-
in the companies to satisfy was a minority owner from 1996 ing he would forfeit two months gardless of Moyes’s financial sit-
debts. Aubrey McClendon, until last year. years later, he took Swift private and was majority owner of the of salary and his 2015 bonus. uation,” said Mr. Hatfield of Ray-
founder and former CEO of Mr. Dozer said the board has in a $2.6 billion leveraged buy- NHL’s Phoenix Coyotes, in a They asked him to reduce the mond James.
Chesapeake Energy Corp., was been “working in concert to re- out. group that included hockey portion of his shares pledged as Other investors, among them
forced to unload 94% of his duce the number of shares Jerry Mr. Moyes has often used his great Wayne Gretzky, before the collateral to 15% or less by Nov. the Teamsters, said the limits
stake. Last year, Valeant Phar- has pledged on margin loans.” stake in Swift—which he took team filed for bankruptcy and 4, according to an SEC filing. put in place by the company
maceuticals International Inc. Swift’s regulatory filings “ade- public again in 2010—to help was sold back to the league in As for the 10% limit, the don’t go far enough because
CEO J. Michael Pearson had to quately explain the transactions fund other pursuits, analysts say. 2009. board delayed imposing that for they don’t apply to the arrange-
sell about $100 million of his and timelines,” he said. “Jerry’s always got a bunch of Mr. Moyes and his family another year—until the end of ments with Citigroup. Mr. Moyes
shares in the company as its Another independent direc- money collateralized,” said Art owned 60.3 million Swift shares 2016—“so that the margin posi- is “using Swift as his personal
once-soaring shares slumped. tor, Glenn Brown, said, “All the Hatfield, an analyst at brokerage as of Oct. 31 and had pledged at tions could be reduced in an or- bank,” said Carin Zelenko, direc-
Though corporations may decisions that the board makes firm Raymond James. “Ever least 37 million of them either as derly fashion,” according to the tor of the capital-strategies de-
permit executives and directors are in the best interests of the since he’s been involved with the margin-loan collateral or in filing. partment for the Teamsters
to borrow against company shareholders.” company, he’s pledged his stock. loan-like arrangements, accord- On Christmas Eve, Swift said union, which holds a stake in
shares they own, many limit or The son of a trucker, Mr. He’s got so many different busi- ing to regulatory filings. that “as a result of recent vola- Swift. The board’s limit on the
ban the practice. Such borrow- Moyes, 71 years old, is a pioneer ness interests going on that he’s When Swift went public for tility” in the stock, Mr. Moyes pledging of shares “was only ad-
ing is unpopular among some in- of the modern trucking business. always used Swift stocks as col- the second time, it had a policy had once again increased the dressing part of the problem,
stitutional investors, who say it He built Swift from a single lateral against loans to his other barring directors and senior offi- amount of his Swift stock and now we see they can’t even
can undermine the long-term in- truck in Phoenix into a coast-to- ventures.” cers from pledging more than pledged on margin loans, ex- hold him to that,” she said.
centive of stock ownership by coast giant with 18,000 trucks In addition to Swift and the 20% of their family holdings in ceeding the 15% limit. The board Swift said Mr. Moyes’s ar-
generating quick cash, and can and $4 billion in annual revenue. Diamondbacks, Mr. Moyes’s ven- Swift stock for margin loans. waived the 15% restriction, giv- rangements with Citigroup
insulate executives from poor Mr. Moyes resigned as CEO in tures in the Phoenix area have In 2013, the board revised ing him until the end of 2016 to aren’t margin loans, and the
company performance. Also, if 2005 after a settlement with the included a charter airline, a steel the limits, lowering the cap to reduce his position, according to company’s treatment of them is
the stock price falls, holders of Securities and Exchange Com- fabricator and a marina that of- 15% as of July 2014 and to 10% SEC filings. consistent with policies in place
pledged shares could be forced mission of civil insider-trading fers boat tours of Lake Powell. as of July 2015. According to SEC filings, Mr. since Swift’s IPO in 2010.
to sell rapidly, hurting the price allegations, in which he didn’t He was a minority owner of the In June 2015, Mr. Moyes told Moyes has pledged some eight —Paul Page
even more. admit any wrongdoing. Two Phoenix Suns basketball team Swift’s chairman he was trying million shares of Swift as collat- contributed to this article.
THE WALL STREET JOURNAL. Friday, January 29, 2016 | A9
OPINION
The Rubio Gamble BOOKSHELF | By Mark Yost
Marco Rubio
is suddenly
e v e r yw h e re
Iowa. The Rubio team has
bided its time in the state,
convinced that it is possible
Hampshire, where even now
he is only polling in the mid-
dle of the pack.
PAC has spent about $20 mil-
lion attacking him). The bar-
rage will only increase, and
Getting Away
in Iowa. He’s
campaigning
alongside
to peak too soon. And Iowa
voters do tend to be last-
minute deciders. Rick Santo-
Cue the next Rubio calcu-
lation—that after Iowa, a lot
more votes will be up for
weathering it may prove im-
possible.
Some of Mr. Rubio’s main-
With Murder
POTOMAC Joni Ernst, rum, a few weeks from the grabs. Surveys show that stream competitors might
WATCH the state’s
popular sena-
2012 Iowa caucuses, was
averaging about 7%; he fin-
both Mr. Rubio and Mr. Cruz
are vying for the same vot-
stay in the race longer than
expected, muddying his two-
The Butcher’s Trail
By Kimberley
tor. He’s in ished with nearly 25% of the ers. Any Cruz pain is poten- man hopes. The longer the By Julian Borger
A. Strassel
the headlines vote. Newt Gingrich, by con- tially Rubio gain. Meanwhile, field stays crowded, the (Other Press, 400 pages, $23.95)
I
of the Des trast, saw his numbers tank a poor showing by Rick San- harder it will be for Mr.
Moines Register and Sioux in the homestretch. torum and Mike Huckabee Rubio to raise the money t might be reasonable to assume, while reading about the
City Journal, both of which will likely knock them out of needed to keep fighting. Even ghastly carnage in Syria and Iraq today, that the men
endorsed him. He’s playing to the race. Iowa also might if he gets the two-man race responsible for the worst atrocities will be brought to
standing-room-only crowds, There’s a method to his spell the end for Ben Carson he wants, the specifics mat- justice when the wars are over. The crimes are all too apparent,
jamming in three or four or Rand Paul or Carly ter. Many Republicans think and the criminals are even boastful about their deeds. But
events a day. unusual strategy. It all Fiorina. Collectively, this lat- Mr. Trump—given his high Julian Borger’s “The Butcher’s Trail: How the Search for Balkan
That is a change for the depends on a strong ter group commands about negatives—is beatable in a War Criminals Became the World’s Most Successful Manhunt”
Florida senator—and a care- 12% of New Hampshire vot- one-on-one match. A Rubio- suggests a different conclusion, if at times inadvertently. Mr.
fully planned one. Of all the showing in Iowa. ers—who would be looking Cruz face-off, however, could Borger covered the 1990s wars in Bosnia and Kosovo for the
Republican candidates, none for a new candidate. prove a longer, harder battle BBC and the Guardian newspaper. His well-researched
is playing a more complex An Iowa boost for Mr. over who has the better con- chronicle—which includes the 1995 massacre of more than
(or longer) game than Mr. Mr. Rubio’s relatively low- Rubio would separate him servative credentials. 8,000 men and boys at Srebrenica, a village in eastern
Rubio. Donald Trump and key approach to early cam- from the Bush/Christie/Kasich What Mr. Rubio may have Bosnia—is a timely reminder
Sen. Ted Cruz are following paigning in Iowa all but guar- scrum, allowing him to pres- going for him is time, and of how feckless international
the conventional route of anteed he would never match ent himself as the viable timing. This primary cycle is efforts can be when it comes
betting that big early victo- Trump-Cruz heights. His alternative to Mr. Trump or truncated—starting late, mov- to stopping war crimes or,
ries will lock in the nomina- final, feisty Iowa push is in- Mr. Cruz, assuming one of ing briskly, ending early. Yet later, holding their
tion. Jeb Bush, Chris Christie stead designed to produce a them is the front-runner. And the early section, including perpetrators to account.
and John Kasich are using surprisingly strong finish the calculation would hold the March 1 Super Tuesday The Balkans in the 1990s
another classic approach— that gives him momentum from there on out. Mr. Rubio voting in more than a dozen were not unlike Syria and Iraq
putting all their chips on one out of the state. has been building his pres- states, is stacked with con- today. The international
state, hoping to jump-start a The follow-on Rubio calcu- ence in all the states that fol- tests that award only “pro- community, appalled by
move. lation is that the loser of low Iowa, ready to scoop up portional” delegates—the revanchist fighting and mass
Mr. Rubio by contrast is Monday’s Trump-Cruz death voters as other candidates states aren’t winner-take-all. slaughter, issued condemnations
flouting the usual rules, play- match goes into New Hamp- drop out, until it’s a two-man That makes it harder for any and tried to put together a
ing everywhere at once and shire wounded. A Trump loss race between him and either one candidate to stand out coalition to stop it. In the early
nowhere on top. It’s the Wait would certainly inspire a Mr. Trump or Mr. Cruz. quickly in the delegate count. and mid-1990s—in the midst of
Them Out strategy. The plan rethink of the real-estate mo- If all this sounds tenuous, The real crunch comes on Yugoslavia’s post-Cold War
hinges on edgy calculations gul. Mr. Cruz, meanwhile, has it is. And plenty can go March 15, when the first win- splitting apart—the most vicious acts
and big risks. Yet given the based his candidacy on a wrong. Mr. Cruz and Mr. ner-take-all states kick in. were perpetrated by Orthodox Croats and Serbs against
unusual nature of this pri- strong pitch to Iowa’s evan- Trump could both finish And so back to Iowa, Muslims in Bosnia. But when it came to doing something, Mr.
mary cycle, the approach may gelicals and activists that he strong in Iowa, leaving Mr. where the latest polls show Borger writes, “blue-helmeted UN troops . . . arrived shackled
prove as plausible as any is the only true conservative Rubio an afterthought. The Mr. Rubio inching up, and with restrictive rules of engagement that allowed them to open
other. in the race. Yet if Mr. Cruz Florida senator is facing an where his team is fervently fire only to defend themselves, not to protect the civilian
The first of those Rubio can’t win in Iowa, of all onslaught of negative adver- hoping that anything in this victims.” They could “stop Bosnians from starving, but not
calculations is that he has places, where does he win? tising from his rivals in New race is still possible. from being shot or blown apart.”
the ability to finish strong in He would limp into New Hampshire (Jeb Bush’s super Write to kim@wsj.com. The United States, the de facto coalition leader, could be
equally weak-kneed. On the campaign trail in 1992, “Bill
Clinton had promised to use American military might to stop
In a Boy’s Hand, the Islamist Disease the mass killing in Bosnia, but once he was in office that
promise was quickly forgotten.” When the United States
committed troops to NATO’s “stabilization force” in the
HOUSES OF The story of cal Islam has successfully pro- silence minority opposition. There is not an obvious mili- mid-1990s, the Clinton administration proved to be gun-shy
WORSHIP Anwar Ali, pagandized the people, like His blasphemy ordinances tary solution to deal with the about outright confrontation, remembering all too vividly the
By Khurram the Pakistani those in Khanqah, to the point became a conduit for settling instability and violence in the October 1993 “Black Hawk Down” debacle in Somalia.
Dara boy who sev- where something as sad as political and personal scores. Middle East and North Africa, Much of “The Butcher’s Trail” is devoted to the manhunts
ered his own Anwar’s actions are consid- The laws also further legiti- nor is it clear (even if we were that began after the International Criminal Tribunal for
hand earlier ered not just acceptable but mized the supremacist atti- successful in finding one) what Yugoslavia—installed in The Hague in 1993—started issuing
this month, underscores the also praiseworthy, even righ- tudes of radical Islamists. It is the subsequent political resolu- its first indictments, as well as to the manhunts that followed
deep, dangerous and often teous. It is the result of a a tragic example of political tion would be—the Arab upris- Kosovo’s separatist rebellion and NATO’s bombardment of
overlooked threat posed by singular and supremacist view maneuvering under the guise ings have taught us as much. Serbia in 1999. The criminals themselves were often hiding in
radical Islam—its assault on of Islam that stands in dia- of religious duty—capitalizing But we can all agree that radi- plain sight or living under the protection of the governments
the mind. metric opposition to justice in on extremist ideologies that cal Islam is a menace that is they had served. Of the 161 names on the list of war-crime
It is gut-wrenching that a contemporary civil society, have grown stronger. claiming not just lives, but suspects drawn up by the ICTY, Mr. Borger tells us, 10 died
15-year-old boy, who raised and indeed Islamic faith itself. hearts and minds too. before they could be tried and an additional 20 had the
his hand at evening prayers In the premodern Muslim If we are fighting terrorism charges against them dropped. Of the rest, only 65 were
after the local imam asked world, before today’s nation- The problem isn’t on all fronts then shouldn’t we tracked down and arrested.
who among them did not love states and modern govern- be tackling the underlying
the Prophet Muhammad—mis- ments, harsh punishments with Islam, it’s within ideology instead of casting this
takenly thinking that the combined with stiff burdens of Islam, as a grisly scene as something completely de- The Balkans in the 1990s were not unlike Syria
cleric had asked who did love proof were used to deter void of religion? and Iraq today. The international community
the prophet—would cut off his crime. Even as the region tried in Pakistan showed. U.S. policy makers ought to
own hand to prove his faith to to transition to modern gov- put greater pressure on for- condemned the slaughter but did little to stop it.
the imam, who had accused ernment after World War I, eign governments, including
him of blasphemy after the in- these practices—severe pun- Treating this as a problem longtime allies Saudi Arabia
cident. ishment but low rates of con- with all Muslims and all of and Pakistan, to stop the Among the key targets of the criminal court’s
What’s even more troubling viction—held somewhat. Islam is not helpful or accu- funding and exporting of radi- investigations were the Serbian President Slobodan Milosevic;
is that, even as attempts were Yet in the years since, dicta- rate. But neither is denying calism. And contrary to what the leaders of the Bosnian Serbs, Radovan Karadzic and Gen.
made to arrest the cleric, tors and Islamists alike have that this has anything to do some presidential candidates Ratko Mladic; and Franjo Tudjman, the president of Croatia,
many in Khanqah, the eastern been keen on keeping these with Islam. There is a problem, are saying, it is crucial that which was responsible for the ejection of hundreds of
Punjab village where the premodern punishments, only not with, but within Islam. Washington and the West thousands of ethnic Serbs from Croatia’s Krajina region and
spectacle occurred, defended without the high evidentiary There is more to this than the work with Muslim communi- for ethnic cleansing in Bosnia. In the event, Milosevic was
both the imam and the boy’s standards. Pakistan, for exam- war in Syria, the rise of Islamic ties at home and abroad not seized in Belgrade in 2001 and taken to The Hague for
actions, praising his devotion ple, had just 14 reported cases State, and self-radicalized ter- against them. prosecution. He died in custody in 2006 after years of
to God. of blasphemy before 1986. rorist attacks in the West. Because if this horrifying courtroom gamesmanship. Karadzic remained at large until
On so many levels, this Since then, nearly 1,300 people This is not just about re- extremism that continues to 2008, when he was captured in Belgrade. He had grown a
story is illustrative of the dis- have been charged with the pressive regimes and foreign- claim innocent life and limb is full beard to mask his identity, but his neighbors and a
ease spreading within Islam. crime, according to an investi- policy miscues that have to be defeated, it will require friendly government knew who he was. Mladic, who received
There is no prescribed punish- gation by the Pakistani news- helped this radicalism spread. Muslims, who have watched help from a public that revered him as a hero, was arrested
ment for blasphemy in the paper Dawn. This goes beyond the misog- radicalism soil their faith and in 2011. (The trials of both Karadzic and Mladic are fitfully
Quran and no legitimate Is- In the 1980s Pakistani Pres- yny that says it’s acceptable to define its image, to lead the under way.) As for Tudjman, the Hague tribunal did not
lamic school of thought could ident Muhammad Zia-ul-Haq, abuse women and the fight. indict him before his death in 1999, though in the years since
conceivably find that self-in- who had risen through a coup, medieval customs that en- he has been implicated in the crime of ethnic cleansing and
flicted amputation is warsaw an opportunity to consoli- dorse a boy’s decision to sever Mr. Dara, an attorney, is the members of his circle have been found guilty of war crimes.
ranted for an accidental date his power by aligning his hand. This is an assault on author of “The Crescent Direc- Mr. Borger tries to make the case that the capture,
gesture like Anwar’s. Yet the with radical Islamists to diversity of thought and free tive” (Tensile, 2011) and “Con- punishment or censure of such figures, and many others, has
well-financed machine of radi- bolster blasphemy laws and thinking. tracting Fear” (Cascade, 2015). amounted to a moral victory for international law, but he gives
the Hague tribunal and its creators more credit than they
deserve. He argues that before the ICTY “there was no
Since When Is Free Web Access a Bad Thing? institutional framework for judging war crimes and crimes
against humanity.” He glosses over the post-World War II
Nuremberg and Tokyo trials, saying that neither “succeeded in
By Geoffrey A. Manne cism in India prompted regula- give new users basic access. based plans to facilitate access drawing a line in human history.”
I
tors to pull the plug on Free From there users may purchase to users’ most-preferred con- What is more, Mr. Borger’s detailed reporting shows how
nternet content and service Basics at the end of last year more services or data. But even tent, charging heavy users in- many bureaucratic hurdles were faced by the policemen,
providers are poised to of- while they consider rules that when they don’t, the initial con- creasing rates for more data. soldiers and intelligence agents who were in search of war
fer an economically and would ban “differentiated pric- straints are regularly relaxed or Net-neutrality advocates re- criminals. This obstructionism was not accidental. Among the
socially transformative service ing” plans entirely. removed entirely as competi- gard both practices as anath- leaders of the occupying forces, Mr. Borger makes clear, there
to millions of people in develop- Net-neutrality advocates tors challenge the markets ema. But flat-rate pricing was a constant fear of taking casualties. According to the
ing countries: low-cost access to complain that zero-rated ser- created by free services. means low-bandwidth custom- British ambassador in Sarajevo, the rules of engagement were:
the Web. That is, if regulators vices offer consumers an Take Dropbox, the cloud- ers subsidize high-consump- “Don’t pick him up, unless you actually trip over him.” Mr.
and self-proclaimed consumer “impoverished” Internet—one storage service. Most users tion customers, and leads to Borger describes Hervé Gourmelon, a French army major in
advocates don’t stop them. where companies like Facebook enjoy its basic, free offering; more congestion. Discrimina- Sarajevo whose job it was to “liaise with the Bosnian Serb
The latest skirmish in the designate which parts of the not many pay for its enhanced tory pricing also encourages leadership” in 1995-96, after Karadzic’s indictment. Not only
never-ending net-neutrality Web users can access. Critics services. Nevertheless Dropbox competition by enabling cus- did he meet with Karadzic once a month, but he was widely
wars concerns Facebook’s Free further contend that zero-rating virtually created the consumer tomers who receive some ser- suspected of warning the Serbs of pending sweeps.
Basics, a “zero-rated” service harms consumers by allowing cloud-storage market by ap- vices at low or no cost to ex- Gourmelon, Mr. Borger notes, was merely carrying out French
that allows users to access Internet service providers to pealing to people who couldn’t periment with others, even policy, since “Paris did not want to lose any more lives in a
Facebook—and other useful favor preferred content over afford unlimited physical stor- when they are not subsidized. ‘misunderstanding’ with Karadzic’s bodyguards.”
websites—without incurring new competitors. age. Competitors now offer India’s telecom regulator One lesson of “The Butcher’s Trail” is that, whatever the
data charges. These charges are without further refinements on the claims that differential pricing crimes of ethnic and tribal conflict, the postwar quest for
The program has already merit. First, Facebook has nei- technology, and Dropbox has threatens the “orderly growth” justice may well be thwarted by the recalcitrance of regional
brought 15 million new users ther the financial incentive nor regularly improved and ex- of the telecom sector. But loyalties and the tangled imperatives of geopolitics. Today’s
online, and it’s available to a the moral obligation to provide panded its services. economic growth is rarely “or- war criminals have little to fear.
billion more in 38 developing free, unlimited Internet access As makers of inexpensive derly.” The real choice for the
countries in Africa, Asia and to every person on the planet. Android devices focus on the poorest users isn’t between In- Mr. Yost, an editorial-page writer for The Wall Street
Latin America. “Who could pos- Even so, Free Basics is an open Indian market, the opportunity ternet nirvana and Free Basics; Journal Europe in the 1990s, lives in Chicago.
sibly be against this?” Mark platform, and any service that for ever-broadening Internet it’s between Free Basics and no
Zuckerberg recently marveled meets its guidelines can par- use is vast. Services like Face- Internet at all.
in the Times of India. ticipate. book’s Free Basics and Wikipe- Coming in BOOKS this weekend
A lot of people, apparently. Zero-rating is a common dia Zero connect underserved Mr. Manne is the founder The hodgepodge human body • Abraham Lincoln and
Although much of the develop- business model throughout the populations and cheap phones and executive director of the friends • A critique of realpolitik • When China went boom
ing world has welcomed Free economy—think “loss-leader.” to online services at low or no International Center for Law & • 1916 was a very bad year • The novel as aria • Science
Basics, net-neutrality scolds Web services and ISPs often price. Similarly, ISPs in the Economics, a nonprofit think by moonlight • A great young adult novel • and more
deride it. In fact, intense criti- offer free or low-cost tiers that U.S. and elsewhere offer usage- tank in Portland, Ore.
A10 | Friday, January 29, 2016 THE WALL STREET JOURNAL.
OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR
Hillary’s Vast Inspector-General Conspiracy Sanders’s Trading Tax and Creation of Wealth
T
he Hillary Clinton apparat has never Housing Finance Agency probe of J.P. Morgan’s Burton Malkiel’s “The Bernie Sand- For the chance at success, the chance
obeyed Marquess of Queensberry polit- mortgage-backed securities resulted in a $13 ers Tax Attack on Stock Trades” (op- to live better than one would punch-
ed, Jan. 22) provides a clear-eyed ing a time clock for The Man. Why
ical rules, and they’re most vicious billion settlement, and he’s worked for the view of the unintended consequences would anyone start a business in Ber-
when cornered. So perhaps it Wilmer Hale law firm with its of populist rhetoric. There’s no deny- nie Sanders’s world?
reveals something about the Team Clinton prepares roll of marquee Democratic ing the truth of the excesses of Wall MARK PEARSON
probe into Mrs. Clinton’s mis- to give investigators the partners and clients. Street and of the uneven playing field Thousand Oaks, Calif.
handling of classified material Then again, the familiar for small, individual investors, as ex-
on her personal email server Ken Starr treatment. Clinton method is to depict posed in “Flash Boys” and “The Big If Mr. Malkiel is so concerned that
that her enforcers are now as- anyone looking into their Short.” the huge waves from this tax would
sailing the integrity of the in- dealings as partisan maniacs. Sen. Sanders’s campaign has engulf and reduce our comparative ad-
vestigators. In the 1990s they converted the respected cen- gained traction because many believe vantage and create societal distor-
The latest target is David Seide, who serves ter-right jurist Kenneth Starr into Torquemada, he’s sincere about reducing inequal- tions, he need look no further than the
ity, improving fairness and increasing effect on markets of high-speed trad-
as counselor and acting senior adviser to State and the first lady herself smeared the special
opportunity. But taxing stock trades ing, front-running public market or-
Department Inspector General Steve Linick. A counsel. “We get a politically motivated prose- isn’t the way to pay for health care or ders. Now that is the ultimate hidden
decade ago as an assistant U.S. attorney in Los cutor who is allied with the right-wing oppo- college or Social Security or anything tax distorting pricing and asset values.
Angeles, Mr. Seide was tangentially involved in nents of my husband,” she claimed on the “To- else. Mr. Sanders can help himself by If the exchanges and regulators
the prosecution of David Rosen, the finance di- day” show in 1998, adding that Mr. Starr was heeding Mr. Malkiel’s key point that clamped down on the “flash boys”
rector of Mrs. Clinton’s New York Senate cam- “using the criminal justice system to try to taxes on stock trades will create more corrupting markets, the only domestic
paign in 2000, who was acquitted at trial. achieve political ends in this country” and friction in capital markets, making it employment it would affect would be
“You have a guy who used his former posi- “very frankly, to undo the results of two elec- harder for capital to flow into pro- their own. Mr. Sanders’s income trans-
tion to conduct a wide-ranging investigation tions.” ductive endeavors, thus hurting the fer is the right tax to levy. It would
into Mrs. Clinton that amounted to nothing, The airstrike on Mr. Seide is also notable be- very people that Mr. Sanders is trying never affect the market all the way
who then continues that work in the State De- cause the Clinton campaign claims the conspir- to help. A 50-cent tax on $100 of out to our economic expansion and
stock trades would be a significant employment, as Mr. Malkiel claims
partment. That has fingerprints on it that are acy includes the intelligence community’s In-
increase in frictional costs, keeping markets are so efficient.
just too visible and just lead to all sorts of spector General Charles McCullough, who marginal small investors out of the Free tuition for public higher edu-
questions,” Steve Israel told Politico for a Jan. confirmed that her emails contained hundreds capital markets. cation may well allow deserving new
25 hit and run. with classified material. Yet Mrs. Clinton dis- Tax the result of stock trades, not students to add to domestic employ-
The wired-in New York House Democrat is missed the controversy in an interview with the activity itself. Tax flash traders, ment and further dismantle the fallacy
a Clintonista in good standing, and Mr. Israel NPR last week as little more than “a continua- not individual investors. of Prof. Malkiel’s weak argument.
went on to speculate: “It actually seems to be tion of an interagency dispute that has been AJIT THAMPY LAURENCE C. DAY
a pattern emerging. This is the second known going on now for some months” about what in- Danville, Calif. St. Louis
high-ranking official in the IG office with a formation ought to be secret. Now Foggy Bot-
glaring conflict of interest.” Emilia DeSanto, tom is apparently out to get her too. Mr. Malkiel is quite right that the Sen. Sanders may very well accept
the deputy IG at State, is a former aide to Re- The Democratic frontrunner apologized in trading tax proposed by Sen. Sanders Mr. Malkiel’s logic and analytics but
would be one more slice in the death still conclude that his larger agenda is
publican Senator Chuck Grassley. September for her email infidelities, but at of a thousand cuts to our fragile econ- served by shifting funds from inves-
A spokesman for the IG denied any conflict, CNN’s town hall this week she seemed to retract omy. All socialist policies demand a tors to college students, who will be
noting that Mr. Rosen was indicted by a differ- it: “I’m not willing to say it was an error in judg- strong central government. Power cor- entitled to a debt-free public educa-
ent federal prosecutor after Mr. Seide left the ment because what—nothing that I did was rupts, and nothing is as powerful as a tion. Recall that President Obama fa-
government. Mr. Seide did investigate the same wrong. It was not in any way prohibited.” government that can dictate economic vored a higher capital-gains tax rate
2000 Brentwood gala and fundraiser whose al- This legalistic evasion and the return of policies over the heads of the popu- even if it was a poor revenue raiser
leged campaign-finance violations led to the smash-mouth defense likely means the Clin- lace. At the center of all socialist that had net negative consequences
Rosen charges, and he won a conviction against tons are more anxious about the email investi- thinking is the belief that wealth is for the economy. Fairness trumps eco-
a separate Clinton donor, who helped bankroll gation than they care to admit. It also may be like a pile of gold, changing only in lo- nomic growth in Mr. Obama’s play-
the event, for stock-price manipulation. intended as a warning to FBI Director James cation and ownership. Progressives book, so any diversion of funds from
tell us that the top 1% are hoarding it. rich to poor (or to Washington) was
If Mr. Seide must now be portrayed as a Re- Comey that he too will get the Ken Starr treat-
Not true. The wealth of Bill Gates is worth it, perhaps explaining why the
publican in drag, Mrs. Clinton is probably para- ment if the bureau recommends a criminal wealth he created. It didn’t exist be- U.S. economy is stuck at 2% growth.
noid about larger troubles. As assistant U.S. at- prosecution for her willful disregard of govern- fore Microsoft. And as his wealth ALAN JONES
torney from 1991 to 2003, Mr. Seide specialized ment procedures in handling America’s na- grew, so too did the wealth of all the Atlanta
in white-collar fraud. In 2014 a Seide-led Federal tional security secrets. retirement funds, mutual funds and
individual stock portfolios invested in This is not the government’s money
Microsoft. to take and redistribute.
Bulletin: Good D.C. News Most startup businesses don’t sur-
vive. Why do people start businesses?
DAN PISENTI
Mill Valley, Calif.
E
vidence that accountability improves stu- That’s why the Stanford-University of Vir-
dent learning keeps piling up, but unions ginia study is important. It’s the first to mea-
remain oblivious. The latest comes from sure how teacher evaluations positively affect
a study of Washington D.C.’s “high-stakes” student learning in the context of teacher turn- Christian Missionaries Serve the Indigenous
teacher evaluations, carried out by the Stanford over. The researchers find that 46% of low-per- It’s not often that we see a sympa- among. They spoke truth to white
Graduate School of Education and University of forming teachers in D.C. leave each year, which thetic portrayal of a Christian mis- power in India, Africa and other far-
Virginia Curry School of Education. is more than three times the attrition rate of sionary these days, so it was with flung lands. Without British mission-
Under public school chancellor Michelle high-performers. It turns out that the mere surprise that I read Thomas S. Kidd’s ary John Mackenzie helping the Afri-
Rhee, Washington D.C. in 2009 pioneered the threat of removal encourages many low-scorers “The Missionary Killed by Islamist cans fight for their land and rights
nation’s most rigorous teacher evaluations. to quit or shape up, and those who leave are Terror” (Houses of Worship, Jan. 22) against whites over a century ago, the
The system rated teachers on measures includ- generally replaced with better teachers. about the murder of Christian mis- nation of Botswana would likely not
ing student academic growth, classroom ob- This churn in the teacher workforce im- sionary Michael Riddering in Burkina exist today.
servations and professionalism. Teachers proved annual student learning by four months Faso. In America today, every group is For all of its mistakes and hypocri-
given the benefit of the doubt except sies that people love to point out,
deemed “ineffective” once or “minimally effec- in reading and math, a significant improve- Christians. Our sins from centuries Christianity has one thing that is
tive” for two consecutive years were dis- ment. The researchers note “that a dispropor- ago, as well as decades ago, are ap- lacking in all other philosophies and
missed. “Highly effective” teachers got a tionate share of low-performing teacher exits parently reason enough to place us religions: an unchanging standard
$25,000 bonus and up to an additional $27,000 are from high-poverty schools.” In other words, permanently in some sort of “subciti- that applies to all—both great and
permanent bump in base pay if they earned an- tougher evaluations help poor kids the most. zen” class in the Western world. small—a standard that calls us to
other high grade. Notably, studies also reveal that union seniority We don’t deny making mistakes, self-examination, confession, humility
Unions argue that intense accountability and layoff rules disproportionately harm poor but it’s very interesting to note that and gracious service by a personal
makes it hard to retain and recruit teachers, and kids by concentrating inexperienced and weak Christian missionaries spent as much God who came to Earth and showed
most education literature shows that high teachers in low-income schools. States and time fighting for justice against their us the way in word and deed.
teacher turnover hurts student achievement. school districts, take note. own countrymen as they did in wit- RUSSELL DODDS
nessing to those they went to live Belton, S.C.
Bernie’s Ice Cream Stand Massive Dark Money Helps the Left as Well
B
ernie Sanders is on a mission to rescue ing) the “huge majority of economic gains that Regarding George Melloan’s review privileged oligarchs and gross income
democracy from the “wealthy” and have gone to the top 1% since the end of the re- of “Dark Money: The Hidden History inequality.
“powerful” who “control” elections. cession. Beneath it, the rest of us.” of the Billionaires Behind the Rise of Mr. Melloan refutes Ms. Mayer’s
We’ll do him one better. We’d Mr. Cohen is donating 25 of the Radical Right” by Jane Mayer contention that there is a vast right-
make democracy safe for ice Two guys named Ben 40 pints of his polar parable to (Bookshelf, Jan. 19): The premise of wing conspiracy still preying on the
cream barons everywhere— the Sanders campaign, which Ms. Mayer’s new book is that conser- public and surging toward a class-war-
even those assisting the
and Jerry dip deep will award the tubs to support- vative billionaires are taking America fare victory. A left-wing billionaire con-
for Bernie Sanders. back to its 1890s Gilded Age future of tingent supporting Democrats includes
Sanders campaign. ers. And yet a Cohen associate
Warren Buffett, Eric Schmidt, Tom
The particular plutocrats insisted the Sanders campaign Steyer, Steven Spielberg and many
we feel for are Ben Cohen and had absolutely paid for all the Fast Diagnosis Is Needed other top 1% of the top one-percenters
Jerry Greenfield, co-founders of the wildly suc- ingredients, services and supplies, and that the in Hollywood, Silicon Valley and Wall
cessful Ben & Jerry’s ice cream brand (now (human) Ben and (human) Jerry had volunteered To Prevent Ebola and Zika Street. Mr. Schmidt, executive chair-
owned by corporate giant Unilever). The liberal their own time, in the (human) Ben’s kitchen, Ebola, Zika virus and other infec- man of Alphabet Inc., Google’s parent
duo are avid Bernie supporters, and as such are and therefore the (corporate) Ben & Jerry’s had tious diseases have gotten the atten- company, advised the Obama White
working hard to get their fellow Vermonter the nothing to do with it. Bernie remains pure, and tion of leaders at the World Eco- House on voter database management
Democratic nomination. Their hassle is all those campaign-finance law remains unviolated. nomic Forum (“Health Threats Spur in 2012, an effort that may have signifi-
campaign-finance restrictions that Mr. Sanders While Sanders supporters might appreciate Vaccine Hunt,” World News, Jan. 21). cantly affected turnout and results.
claims we need for clean elections. this legal purity, it’s a farce. Mr. Sanders is bene- The main focus is often on vaccines If Democrats are successful in purg-
and therapeutics, with the need for ing dark money from politics through
Last May the partners chose to donate ice fiting from two wealthy Americans who are fa- effective diagnostics often underesti- campaign finance laws or disclosure
cream to the Sanders campaign kickoff party. mous for their corporate success. We have a mated. rules that facilitate the targeting and
This inspired the Republican National Commit- campaign-finance system that allows (the hu- Diagnostics are the first line of de- intimidation of conservative donors,
tee to gripe on Twitter: “So @BernieSanders man) Ben and (the human) Jerry to donate their fense in these outbreaks, but they power to influence elections flows back
rallies against corporations but has no problem name and fame and ice cream brand to help to continue to be underfunded. Without to media companies, most of which
taking @benandjerrys free handouts at kick- the Sanders campaign. Yet their namesake, (the rapid diagnostics during an outbreak, lean left (excluding Fox News).
off.” It also questioned whether the company corporate) Ben & Jerry’s, is barred from much the world health community lacks the Despite right-wing dark money,
had properly reported the delectable donation of the same. The distinction is artificial. ability to make a timely and accurate Democrats have had a fundraising ad-
to the Federal Election Commission. These famous ice cream barons might like diagnosis to identify the etiology of vantage relative to Republicans in re-
Ben & Jerry’s (the corporation) quickly to identify with the bottom of that mint tub, the illness and to provide appropriate cent presidential elections. Jeb Bush
treatment. was the odds-on favorite to win this
tweeted that it hadn’t donated the cold stuff, but then again, were the average Joe to ship
Each of us may be only a plane year’s GOP primaries because of his big
but “Ben Cohen and Jerry Greenfield (citi- Bernie 40 pints of ice cream, nobody would ride away from an infectious disease bright-money backers, but Mr. Bush
zens).” Mr. Cohen then provided the media care. Yearning Bernie is going to drum up at- that is most commonly found in an- plummeted from being the front-run-
with a tortuous primer in campaign-finance tention for Mr. Sanders because its creators are other country. Until effective vaccines ner anyway. If our political system and
laws governing “in-kind donations” and “em- part of the rich and famous 1%. are developed, it is in all our best in- economy are sick in 2016, dark money
ployee discount prices” and private-citizen dis- The bigger point is that campaign support terests to ensure that there are new from billionaires is far down the list of
closure rules. Everything, he insisted, was “ex- or criticism comes in many forms—celebrity diagnostics in the development pipe- plausible explanations.
actly by the book.” And thank goodness. Who endorsements, favorable newspaper editorials, line that meet the needs in developed RON ALLEN
knows how many voters Bernie and an interna- ice cream. Liberals focus on “big money,” as if and developing countries to identify, Columbia, Md.
tional conglomerate might have otherwise the commercial and brand fame of (the human) treat and track the outbreaks to min-
bought off with Chunky Monkey. Ben and (the human) Jerry is somehow more imize the deaths and costs to the Letters intended for publication should
world economy associated with out- be addressed to: The Editor, 1211 Avenue
The (human) Ben and (human) Jerry were at noble than donations to Super Pacs.
breaks like Ebola, SARS and MERS. of the Americas, New York, NY 10036,
similar pains this week to legitimize their new A better world would strip away the cam- MARK KESSEL or emailed to wsj.ltrs@wsj.com. Please
aid: Bernie’s Yearning. That’s the new ice cream paign-finance jumble, freeing up the Bens and Chairman include your city and state. All letters
Mr. Cohen developed to symbolize Mr. Sanders’s Jerrys from jumping through hoops, even as Foundation for are subject to editing, and unpublished
agenda. It’s a tub of plain mint, with a chocolate it freed up more Americans to politically com- Innovative New Diagnostics letters can be neither acknowledged nor
returned.
disc on top, which represents (says the packag- pete with ice cream barons. Geneva
THE WALL STREET JOURNAL. Friday, January 29, 2016 | A11
OPINION
The Food Pyramid Scheme Pushback for

By Steven E. Nissen systematic reviews in recent years
Anti-Israel
And Nina Teicholz have found only a weak link between
Academics
T
these fats and heart disease or
he federal government’s cardiovascular mortality. So in many
dietary guidelines have cases weak evidence supports the
changed little since first dietary guidelines, while strong By Cary Nelson
A
being issued in 1980. A re- evidence contradicts them.
vised set of recommenda- Moreover, rates of obesity and dia- t their annual meeting in At-
tions released this month includes a betes remain stubbornly high, and lanta earlier this month, mem-
new cap on added sugar, but this is this isn’t because dietary advice is bers of the American Historical
unlikely to end the guidelines’ fail- ignored. Consider a 2008 report by Association voted down a factually
ure for 35 years to check the rise of the Agriculture Department that esti- flawed resolution condemning Israel.
obesity and diabetes. The problem, mates changes in food consumption It was a victory that may also point
simply put, is a reliance on weak from 1970-2005: grains rose by 41%; the way for academic fields in the
science. vegetable oils by 91%; fish and shell- humanities to regain their lost credi-
But a serious course correction fish by 37%; vegetables by 23%; and bility and stature on campus.
may finally be on the horizon. Con- fruits by 13%. Eggs and red meat each The AHA consists of faculty and
gress, concerned about the continued fell by 17%, and whole milk by 73%. graduate students who teach and
toll taken by nutrition-related dis- Yet during roughly the same period study history throughout the coun-
eases, recently mandated the first- the incidence of diabetes doubled. try. Up for debate and a vote at the
GETTY IMAGES
ever outside review of the evidence That’s why, as part of the budget January meeting was a resolution
underlying the dietary guidelines and bill that passed Congress in Decem- condemning Israel for its conduct
the process that produces them. The ber, lawmakers appropriated $1 mil- affecting higher education in Gaza,
National Academy of Medicine will lion for an independent review of Israel itself, and the West Bank. For
conduct the review this year. Yet this the dietary guidelines. Congress instance, the resolution claimed that
effort could do more harm than good by linking smoking to cancer in the terol might be linked to heart dis- wants to ensure that the next Israel refuses “to allow students from
if the academy endorses the weak early 1950s. Yet heavy smokers had a ease, and fat to cancer. For decades revision, due in 2020, will “better Gaza to travel in order to pursue
science that has shaped the guide- risk of lung cancer 9 to 25 times physicians told the public to avoid prevent chronic disease.” But we higher education abroad.”
lines for decades. greater than did nonsmokers, a big egg yolks and shellfish. Millions of fear that the review, like the guide- Opponents marshaled evidence to
The crux of the problem is that enough difference to give researchers Americans adopted low-fat diets and lines, will be dominated by epidemi- prove this was untrue. Egypt, not
many of the dietary recommenda- confidence that the association was ate more carbohydrates. Yet these ology. Several members of the 2015 Israel, controls the “Rafah crossing”
tions are not based on clinical trials, real. By contrast, studies that link theorized links were later rejected. Dietary Guidelines Advisory Commit- that Gaza students and faculty head-
which can reliably demonstrate a nutrition with disease generally find And a large body of evidence now tee are also on the National Academy ing toward universities abroad have
cause-and-effect relationship. In a differences in risk of 1 to 2 times. suggests that eating excessive carbo- of Medicine, and Congress has asked used for decades. Unlike the benighted
clinical trial, subjects are randomly hydrates increases the risk of heart them to recuse themselves. English-department faculty members
assigned to one or more diets, disease, obesity and diabetes. The academy might go further by from Columbia and Wesleyan universi-
whose health effects are then mea- The feds’ dietary guide is Scientists should have known in appointing a disinterested referee, ties who proposed a similar resolution
sured. Such studies are extremely 1980 that the recommendation to someone from outside the field of
challenging and expensive because based on dubious science cut fat was unsound. Large clinical nutrition, to lead the review. Ideally,
subjects must be monitored closely —and now Congress trials at the time did not support this person would have a back- The American Historical
or even provided food to ensure that the theory, according to a systematic ground in systematic methodology
they are adhering to the diet. wants an impartial review. review published last year in the or evidence-based medicine, fields Association recognized
Instead, many of the dietary rec- cardiology journal Open Heart. “It that focus on how to evaluate and that its own credibility was
ommendations are justified by seems incomprehensible that dietary prioritize varying results from scien-
observational studies, using a scien- Moreover, of the enormous num- advice was introduced for 220 mil- tific studies. This expertise would on the line in a recent vote.
tific method known as prospective ber of associations generated by ob- lion Americans,” the authors wrote, assure the public that the review is
epidemiology. Researchers send out servational studies, only a small “given the contrary results.” to be a serious, objective weighing
questionnaires to large numbers of number are ultimately confirmed. In What’s disturbing is how little of the evidence. two years ago, AHA historians were
people, asking about diet and life- 2005 John Ioannidis of Stanford an- this new evidence has been heeded. Diseases caused by poor eating interested in facts. They likely knew
style. They then follow up for years alyzed several dozen highly cited The guidelines continue to insist habits destroy lives and cost the that after Egypt closed the Rafah
to record health outcomes. studies and concluded that subse- that Americans choose reduced-fat nation trillions in health care. When crossing in October 2014, Israel in-
This method cannot show causa- quent clinical trials could reproduce dairy products like skim milk. But wrong nutritional advice is dispensed creased the flow of students leaving
tion, only associations. For instance, only about 20% of observational even epidemiological evidence now to the public, scientists lose credibil- Gaza through the Erez crossing into
obesity might be associated with sit- findings. A 2011 paper published by contradicts this advice, and a ran- ity, opening the door to dietary cults. Israel to the north, and on to Jordan
ting in front of the television. But the statistics journal Significance domized trial published last month The current guidelines clearly aren’t for flights abroad.
people who spend a lot of time analyzed 52 claims made in nutri- in the American Journal of Clinical working. This review offers a chance But Jordan, which once issued
watching TV might also eat more tional studies, and none—0%—with- Nutrition found that people eating to steer them on a surer course. transit visas in 10 days, now takes
junk food. What’s making them fat: stood the scrutiny of subsequent full-fat dairy, including whole milk, several months or longer because of
The TV-watching, the junk food, or clinical trials. These are very poor showed a number of better heart- Dr. Nissen, chairman of the depart- increased security concerns about
something else entirely that no one odds on which to gamble public disease outcomes. ment of cardiovascular medicine at students from Gaza. The Palestinian
thought to measure? Epidemiologists health. Yet policy makers have The guidelines continue to place a the Cleveland Clinic, is the co-author Authority doesn’t pass on requests for
try to adjust for these variables, but forged ahead anyway. cap on saturated fats—10% of total of “Heart 411” (Three Rivers Press, permits to Israel without the visa
there is always uncertainty. This has led to many flip-flops in calories—based on what the authors 2012). Ms. Teicholz is the author of from Jordan. Fellowships and other
It’s true that epidemiological sci- dietary advice. At one point epidemi- consider “strong evidence.” But “The Big Fat Surprise” (Simon & opportunities expire as a result.
ence has had successes, most notably ological data suggested that choles- nearly a dozen meta-analyses or Schuster, 2014). The resolution also condemned
Israel for an air attack on the Islamic
University of Gaza during Operation
If Only Hillary and Bernie Would Recall JFK Protective Edge in 2014. But it failed
to mention that the campus housed a
weapons development and testing
By Edward P. Lazear than the top 10% of earners) grew dence that the success among top vacancies for those types of workers. facility, a valid target under the laws
S
three times as fast as they did from earners is at the expense of lower But job vacancies for managers of war.
peaking about the economy a 2000 on. The same was true of the earners. and professional workers usually All this was too much nuance and
half-century ago, President earnings of the 20th-percentile The “rising tide lifts all boats” outnumber the unemployed. Even in complication for Historians Against
John F. Kennedy told Ameri- earner, which also grew three times metaphor is off in one respect. When the housing boom year of 2006, War, the group proposing the resolu-
cans that “a rising tide lifts all as fast between 1980 and 2000 as a tide rises, all boats move up by the while there were about two profes- tion. Yet an academic discipline that
boats.” Today many disagree, includ- they did between 2000 and 2014. same amount. Earnings growth sional vacancies for every unem- is supposedly a forum for disinter-
ing those in his party who want to The average annual GDP grew about doesn’t follow that pattern; some- ployed professional worker, there ested scholarship and open debate
be the next Democratic president. twice as rapidly in the earlier period times the bottom moves up by more were more than seven unemployed was at risk of abandoning its tradi-
Hillary Clinton is one. She has as it did during the latter period. than the top. In the mid-1980s, construction workers for every con- tions and intellectual integrity. In the
repeatedly claimed, most recently in earnings of the 20th percentile grew struction job vacancy. end a strong majority of historians
Omaha, Neb., last month, that “the about 40% more rapidly than earn- Wages move with demand. Just didn’t want to see their field turned
deck is stacked,” with “the wealthy Kennedy knew ‘a rising ings of the 90th percentile. as high wages for skilled labor re- into a propaganda machine (although
getting wealthier at the expense of Over recent years, top earners flect strong demand for those who a similar resolution is sure to return
hard-working families.” tide lifts all boats.’ Today’s have enjoyed more wage growth can do the jobs required in our eventually).
Bernie Sanders also complains that Democrats prefer class than those at the bottom. This is advanced economy, low wages at Less was at stake for some aca-
the system “has been rigged by Wall the source of the complaint that the the bottom reflect poor demand for demic organizations—such as the
Street.” At the Democratic debate on warfare over prosperity. rich have taken all the spoils of those without the requisite skills. National Women’s Studies Associa-
Jan. 17, he said that “ordinary Amer- growth. But the bottom is not To raise wages at the bottom, the tion—that have endorsed anti-Israel
icans are working longer hours for struggling because the top is thriv- productivity of the least-skilled resolutions. Born of political move-
lower wages, 47 million people This linkage appears in bad times ing—and reducing earnings growth workers has to improve. Better edu- ments and forged with political agen-
living in poverty, and almost all of as well. The 90th percentile, the at the top wouldn’t increase earn- cation is at least part of the answer. das, they sacrificed little in terms of
the new income and wealth going to 20th percentile and the median ings growth at the bottom. Redistribution through the tax sys- disinterested scholarship.
the top 1%.” earner (defined as the earner at the All groups’ earnings grow when tem won’t improve those skills; if But history is one of the venerable
Nevertheless, what Kennedy said 50th percentile) saw actual declines the economy is prospering, and high anything, it will work in the wrong humanities fields, and its loss to
is as true today as it was in the in real earnings from 2008-14. growth is especially important for direction by making skill acquisition ideological politics would have wide
early 1960s. A more detailed analysis of CPS lower-income earners. Additionally, less rewarding. and deeper implications. The humani-
Most economists who have exam- earnings data (posted on the Hoover the lagging earnings among the The earnings of individuals with ties have been slowly defunded over
ined income data believe that the Institution website) reinforces the least-skilled workers reflect defi- low incomes are most likely to grow decades. If the key humanities and
gulf between top and bottom earn- point. There is a statistically strong ciencies in demand for those work- when the incomes of top earners interpretive social-science fields—
ers in the U.S. has widened. Yet data correlation between the growth in ers—and this deficiency, crucially, is also grow—and the best way to from literature and languages to
from the Bureau of Labor Statistics’ earnings of the 90th-percentile a result of low productivity. make the poor prosperous is by history and anthropology—become
Current Population Survey (CPS) earner, the median earner and the In a 2012 study published by the improving their skills and growing centers of anti-Israel indoctrination,
from 1980-2014 reveal that the peri- earner at the 20th percentile. The Kansas City Federal Reserve Bank, the overall economy. Some boats are they will not only be economically
ods when low-income workers do middle and bottom tend to grow James Spletzer and I found that there bigger than others, but draining the marginal; they will be discredited. Will
best are generally the same as those when the top grows. The connection are chronically high job-vacancy rates ocean won’t help boats of any size. parents, state legislators and, most
when high-income workers prosper. between the groups is quite strong and low unemployment rates in the important, universities feel any reason
From 1980-2000, the earnings of with the exception of the highest most skilled occupations, but the Mr. Lazear, chairman of the Presi- to replenish humanities resources?
the 90th-percentile earner (the per- 1%, where the correlation is still opposite in the least skilled occupa- dent’s Council of Economic Advisers On April 15, the 10,000-member
son whose earnings are higher than positive but statistically weaker in tions. In good times and bad, there (2006-09), is a professor at Stanford American Anthropological Association
the bottom 90% of earners and lower recent years. But there is no evi- are many more service workers University’s Graduate School of Busi- will begin voting on an anti-Israel
unemployed than there are job ness and a Hoover Institution fellow. resolution endorsed at its annual
meeting in November. While that
meeting was dominated by zealots,
the April vote may focus instead on
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY
Rupert Murdoch Robert Thomson
Notable & Quotable hard evidence and on the damage the
resolution would do to anthropology
Executive Chairman, News Corp Chief Executive Officer, News Corp From a University of California, really knew the reason, we have as a field. A battle over whether to
Gerard Baker William Lewis Los Angeles, news release, Aug. 10, always worried whether we would boycott Israeli universities also will
Editor in Chief Chief Executive Officer and Publisher 2004: have another 10- to 15-year eco- unfold this year in the 25,000-mem-
Rebecca Blumenstein, Matthew J. Murray DOW JONES MANAGEMENT:
nomic slump,” said Ohanian, vice ber Modern Language Association
Deputy Editors in Chief Ashley Huston, Chief Communications Officer; Two UCLA economists say they chair of UCLA’s Department of representing English and foreign-lan-
DEPUTY MANAGING EDITORS: Paul Meller, Chief Technology Officer; have figured out why the Great De- Economics. “We found that a relapse guage faculty and graduate students.
Mark Musgrave, Chief People Officer;
Michael W. Miller, Senior Deputy;
Edward Roussel, Chief Innovation Officer;
pression dragged on for almost 15 isn’t likely unless lawmakers gum up Activists in these disciplines have
Thorold Barker, Europe; Paul Beckett, Asia;
Christine Glancey, News Operations and Talent; Anna Sedgley, Chief Financial Officer; years, and they blame a suspect a recovery with ill-conceived stimu- convinced themselves they have their
Neal Lipschutz, Ethics and Standards; Katie Vanneck-Smith, Chief Customer Officer previously thought to be beyond re- lus policies.” . . . hands on the levers of history and
Alex Martin, Enterprise; Ann Podd, Global
OPERATING EXECUTIVES: proach: President Franklin D. Roose- “The fact that the Depression can delegitimize the state of Israel.
Production; Andrew Regal, Global Head of Video;
Jessica Yu, Global Head of Visuals
Nancy McNeill, Corporate Sales; velt. dragged on for years convinced But they are more likely instead to
Steve Grycuk, Customer Service; After scrutinizing Roosevelt’s re- generations of economists and pol- discredit their academic disciplines.
Paul A. Gigot, Editor of the Editorial Page; Jonathan Wright, International;
Daniel Henninger, Deputy Editor, Editorial Page DJ Media Group: cord for four years, Harold L. Cole icy-makers that capitalism could not We will soon get to see whether the
WALL STREET JOURNAL MANAGEMENT: Almar Latour, Publisher; Kenneth Breen, and Lee E. Ohanian conclude in a be trusted to recover from depres- humanities will be left standing when
Trevor Fellows, Head of Global Sales; Commercial; Edwin A. Finn, Jr., Barron’s; new study that New Deal policies sions and that significant govern- the dust from balloting settles. There
Chris Collins, Advertising; Jason P. Conti, Legal; Professional Information Business:
Suzi Watford, Marketing and Circulation; Christopher Lloyd, Head; signed into law 71 years ago ment intervention was required to are no guarantees.
Joseph B. Vincent, Operations; Ingrid Verschuren, Deputy Head thwarted economic recovery for achieve good outcomes,” Cole said.
Larry L. Hoffman, Production seven long years. “Ironically, our work shows that the Mr. Nelson is an English professor
EDITORIAL AND CORPORATE HEADQUARTERS: “Why the Great Depression lasted recovery would have been very rapid at the University of Illinois at Urbana-
1211 Avenue of the Americas, New York, N.Y., 10036 so long has always been a great had the government not inter- Champaign and an affiliated profes-
Telephone 1-800-DOWJONES
mystery, and because we never vened.” sor at the University of Haifa in Israel.
A12 | Friday, January 29, 2016 * ***** THE WALL STREET JOURNAL.
WORLD NEWS
Starvation Spreads Ahead of Syria Talks

Latest siege by Deir Ezzour. Some 274,200
people are besieged by the
Damascus sparks new government across at least 12
humanitarian crisis in towns, according to the U.N.
Rebels and fighters from al
rebel-held areas Qaeda’s Syrian branch, Nusra
Front, are besieging another
BY NOUR MALAS 12,500 in two towns in Idlib
province.
In the rebel-held Damascus Moadhamiya faces new
suburb of Moadhamiya, resi- pressure even though it struck
dents say a renewed Syrian a truce with the regime in
government siege there and 2013 that still left the town
bombardment of the neighbor- with severe shortages.
MOHAMMED BADRA/EUROPEAN PRESSPHOTO AGENCY

ing town of Daraya have cut In December, the govern-
off the last food-smuggling ment delivered a fresh ultima-
routes, forcing many to subsist tum to rebels, said residents
on one meal a day. involved in the negotiations:
Similar humanitarian crises surrender, exit, and allow the
are playing out around Syria, army in, or risk further depri-
where residents, rebels and in- vation.
ternational aid agencies ac- On Christmas Day, govern-
cuse the regime of President ment forces closed the last
Bashar al-Assad of reinstating open road into Moadhamiya
or tightening sieges on oppo- and a new siege began. Rebels
sition-held areas to help sub- and residents said conditions
due, reclaim or hold strategic have quickly deteriorated
territory. since they refused the new of-
The government’s siege tac- A Syrian woman sits with a man being treated for kidney problems in the besieged city of Douma on Thursday. fer.
tics have become more sys- Mr. Haidar, the reconcilia-
tematic and have escalated it remained unclear whether blocked from receiving hu- eased sieges to show goodwill. new crisis is unfolding in tion minister, said the govern-
over the past two months, an opposition delegation manitarian aid. They are part Samantha Power, the U.S. Moadhamiya, 3 miles from the ment is in negotiations with
part of an overall military ef- would appear. of some 4.6 million people ambassador to the U.N., on capital. Through local part- Moadhamiya because rebels
fort to secure more territory Syria’s reconciliation minis- classified as hard to reach. Wednesday called for coun- ners, the International Rescue there, though they had put
and strengthen the govern- ter, Ali Haidar, said the gov- Previous diplomatic talks tries that have influence over Committee has documented 23 down arms and weren’t violat-
ment’s hand ahead of United ernment doesn’t purposefully on Syria have also focused on Syria’s regime to use it to gain starvation-related deaths in ing the earlier truce, were
Nations-brokered peace talks besiege civilians and works on besieged and starving civil- access for humanitarian aid in Moadhamiya over the past found to be aiding rebels in
set to begin in Geneva on Fri- local truces to ensure that ians, though the deliberations the besieged areas. three weeks, said Kevin Raabe, neighboring Daraya.
day, Western diplomats, aid those living in rebel-held areas are meant to focus on forging The sieges came under re- a deputy director of the aid “As usual, the regime im-
officials and Syrian rebels say. don’t suffer. a political transition. The op- newed scrutiny this month group. poses the siege on the city be-
The sieges are occurring Stephen O’Brien, the U.N.’s position has used the plight of when the government allowed “It’s a very tiring way to fore each conference or an im-
despite extreme international emergency relief coordinator, civilians to underscore its de- three U.N.-led aid convoys into live, or I guess survive,” said portant event,” said Sham, a
pressure to lift restrictions on told the Security Council on mand that Mr. Assad must be the Damascus suburb of Mad- Ammar Ahmad, a resident who member of a Moadhamiya
humanitarian aid to millions Wednesday that humanitarian removed from power to end aya, where dozens have died helps with local relief efforts. town council. “The siege is
of civilians ahead of the talks. conditions in Syria were dete- the crisis. during a seven-month siege. The multiple parties in back to suffocating again,” he
The main opposition dele- riorating and aid access re- The government has struck The provisions arrived after Syria’s war have engaged in said. “The humanitarian and
gation is demanding a lifting mains a major challenge. local truces before, under images of emaciated children sieges. Islamic State is besieg- living situation is terrible.”
of sieges as one of its chief The U.N. says close to pressure from the U.N. and and elderly people provoked ing the largest single commu- —Raja Abdulrahim
conditions to attend the talks. 490,000 people live in be- diplomatic allies on the Secu- an international outcry. nity in Syria, about 200,000 and Dana Ballout
U.N. officials on Thursday said sieged areas in Syria, largely rity Council, and lifted or In the Damascus suburbs, a people in the eastern city of contributed to this article.
After Losing Land, Boko Haram Attacks U.S. Mulls

of Islamic State’s many affili-
ates world-wide, expanded its
Possible
long-running conflict with Ni-
geria into neighboring Camer-
oon, Chad and Niger over the
Actions
past year-and-a-half. Some of
these offensives involved at-
tacks by formations as big as
In Libya
MIDDLE EAST CROSSROADS a thousand men, aided by col- BY GORDON LUBOLD
YAROSLAV TROFIMOV umns of armor pilfered from
Nigeria’s military bases. WASHINGTON—President
In Cameroon’s Far North Barack Obama assembled his
YAROSLAV TROFIMOV/THE WALL STREET JOURNAL
GANCEY, Cameroon—Just region alone, some 1,200 peo- top national security advisers
before dawn prayers earlier ple have died in this conflict, Thursday to talk about step-
this month, a young man according to the government. ping up military operations
wearing a belt of 12 explosive But by conventional mea- against Islamic State, includ-
canisters sures, Boko Haram is finally ing the possibility of an ex-
walked into losing this war. Recent opera- panded fight in Libya, where
the squat, tions by Cameroonian forces, the extremist group is quickly
ochre-colored which receive assistance from gaining a foothold, the White
building that U.S. Special Operations House said.
serves as the troops, and parallel offensives Following the meeting, top
mosque of by the militaries of Nigeria officials said that while no de-
this Cameroonian village. and Chad have significantly cisions had been made, advis-
As he recited the prayers reduced the militant group’s ers were increasingly con-
in the dissipating darkness, ability to wage conventional Members of a local ‘vigilance committee’ against Boko Haram near the town of Kolofata in Cameroon. cerned. The Pentagon has said
the young man accidentally warfare. Islamic State is “metastasizing”
stepped on the foot of Abba attacks.” that—and so now their objec- committee” members lined up to other areas, including Libya.
E
Ali, a 70-year-old villager. victed from much of the This new phase of the war, tive is no longer to amputate on the road not far from “We’re watching the situa-
“I looked up at him and Belgium-size area it which also involves an up- but simply to kill.” Gancey to greet a visiting tion very carefully, and there’s
suddenly realized that this controlled a year ago, surge in roadside bombings To counter the suicide commander of BIR. Many a lot going on there right
was a stranger,” Mr. Ali said. Boko Haram is the only one and other guerrilla-type ac- bombers, Cameroonian au- were armed with homemade now,” Defense Secretary Ash
“That scared me.” of Islamic State’s many affili- tions by Boko Haram, is prov- thorities have also spurred guns, machetes, or arrows Carter told reporters at the
Moments later, the in- ates to have suffered such ing just as deadly—and, in the creation of so-called vigi- and bows. Pentagon after the White
truder detonated his device in dramatic territorial losses. some ways, more difficult to lance committees—local self- “We know that Boko House meeting. “But we ha-
one of some 40 suicide bomb- Developments here, therefore, tackle than the more conven- defense groups that keep an Haram wants to take over the ven’t made any decisions to
ings that Boko Haram, a mili- offer insights into what may tional battles of last year. eye on strangers entering vil- village, so whenever we know take military action there.”
tant group that has become happen should Islamic State’s Boko Haram’s campaign of lages and provide intelligence that someone is not from The White House has ex-
the West African “province” central command be ousted intimidation has almost com- to the military. here, we act,” said one of the panded the U.S. military’s au-
of Islamic State, has un- one day from the core areas it pletely paralyzed the region’s committee leaders, Warrai thority to go after Islamic
C
leashed on Cameroon’s Far controls in Syria and Iraq. economy, with streets empty- ameroon’s Israeli- Coumandji. State, or ISIL, in other areas,
North region since July. A disheartening lesson so ing after dark and travel on trained special forces, But loyalties in the region approving the use of force
Luckily for the faithful of far: The loss of territory only key roads possible only with known as BIR, also re- cut both ways. Many young against the group in Afghani-
Gancey, the explosives belt transforms the nature of the military escorts. It has also ceive training in intelligence villagers along the border stan following a Pentagon re-
malfunctioned and nobody ex- war rather than ending it. prompted at least 100,000 collection and defusing road- have joined the group. quest in December.
cept the attacker died in the “They have changed their people from Cameroon’s Far side bombs from U.S. Special “Boko Haram, too, has in- “The president emphasized
blast. But that doesn’t mean methods because they real- North to flee to safer parts of Operations troops. The U.S. formers all over,” said BIR Lt. that the United States will
the villagers are feeling seized that frontal combat is no the majority-Christian coun- has also set up a drone base Col. Leopolde Nlate Ebale, continue to counter ISIL ter-
cure. longer in their favor,” said try. in the northern Cameroon head of operations for the rorist plotters in any country
“Everyone is afraid that Capt. Ticko Kingue, who com- “Their caliphate project in- city of Garoua to provide all Cameroonian task force over- where it is necessary,” said a
we will have another suicide mands a company of Camer- volved amputating parts of of the four countries tar- seeing the most sensitive ar- statement issued by the White
bomber here soon,” said the oonian mechanized infantry our territory,” said Minister geted by Boko Haram with eas along the Nigerian bor- House late Thursday.
Gancey mosque’s imam, Mou- deployed along the border of Communications Issa Tchi- surveillance and intelligence der. “Boko Haram bets on Marine Gen. Joe Dunford,
stapha Goni. “They have tried with Boko Haram-held areas roma Bakary, who hails from data about the militant fear—either to force people chairman of the Joint Chiefs of
it once, and they will likely of Nigeria. “So now they have a prominent Muslim family in group. into actively supporting Staff, said recently that the
try it again.” shifted to the tactic of cow- northern Cameroon. “Militar- On a recent afternoon, them, or to at least constrain U.S. must focus its efforts on
Boko Haram, the deadliest ards—the phase of kamikaze ily, they can no longer achieve several hundred “vigilance them into silence.” combating the group in Libya.
Any U.S. approach is expected
to rely on viable, local forces,
Assad Opponents’ Place at Talks Uncertain

combined with contributions
from other nations.
But as they attempt to map
an expansion of operations,
BY SAM DAGHER for Syria, Staffan de Mistura. barding rebel-held areas with Western diplomat in contact and should be implemented the U.S. and its allies have
The official said the govern- the help of its allies Iran and with the opposition said he immediately—not subjected to confronted a challenge in
GENEVA—United Nations ment delegation was expected Russia. saw no signs that their re- negotiations as happened two Libya due mainly to the ab-
officials said they expected in Geneva around noon local “If there are new gestures gional backers, notably Saudi years ago in the first round of sence of a central government.
representatives of the Syrian time and that in the afternoon on the humanitarian level that Arabia and Turkey, were in failed talks. Not getting that The White House said after
regime to arrive here today it would meet Mr. de Mistura, show goodwill, then this will any way dissuading them from or at least part of that and the meeting Thursday that
for the start of peace talks, who is directing the talks. The allow us to make the case that coming to Geneva. still going to the talks would “ISIL affiliates and other vio-
while it remained unclear opposition was supposed to it’s worth going,” said a senior “They all say they should result in them losing whatever lent extremists attempt to find
whether a delegation of the meet separately with him in member of the opposition del- go to test the position of the support they have left inside safe haven in areas with lim-
regime’s main opponents indirect negotiations called egation, which includes politi- regime, Iran and Russia,” he Syria, several members of the ited or poor governance.”
would join them. proximity talks. cal figures as well as represen- said. “I have not detected any opposition said. As a result, President Ba-
“The special envoy is still A member of the main op- tatives of both moderate one state shifting nuance that They want the talks this rack Obama asked administra-
planning to meet tomorrow position delegation said it was armed factions and more hard- maybe we should not be doing time to instead focus on the tion officials “to continue ef-
with the delegations that ar- difficult for moderates within line Islamist ones. that.” political road map, outlined in forts to strengthen governance
rive and so far it’s only the the group to make the case to Western supporters of the The opposition says its de- the same resolution, calling and support ongoing counter-
government delegation,” a come to Geneva without some opposition, particularly the mands to lift sieges and end for a new government in six terrorism efforts in Libya and
U.N. official said on Thurs- concessions on the humanitar- U.S., have publicly urged the bombardment of rebel-held ar- months and new constitution other countries where ISIL has
day, referring to the interna- ian front and while the regime delegation to come to Geneva eas were mandated by a U.N. and elections within 18 sought to establish a pres-
tional body’s special envoy continues besieging and bom- without preconditions. A Security Council resolution months. ence,” a statement said.
CITY NEWS A14, A15 | HEARD & SCENE A17 | ARTS & ENTERTAINMENT A17
Talking the Talk What Readers

ESTHER LIN/SHOWTIME
Are Thinking
Why boxers have to brag SPORTS | A18 FEEDBACK FRIDAY | A16
WSJ.com/NY * * * * THE WALL STREET JOURNAL. Friday, January 29, 2016 | A13
City Developers Pour It On

Building permits surge also faced an expiration dead- Brooklyn neighborhood of
December Rush line. The program expired on Prospect Lefferts Gardens,
before January windup
ANDREW HINDERAKER FOR THE WALL STREET JOURNAL

New York City building permits Jan. 15. was submitted to the Depart-
surged at the end of 2015 as of 421-a tax exemption; The Real Estate Board of ment of Buildings in July, but
the expiration date neared for New York said the rush was held up because of delays
a tax-exemption program for
total most since 1962 showed the importance of the in a demolition permit. A
developers of apartments. 421-a program in encouraging building permit was issued on
BY JOSH BARBANEL the development of rental Dec. 11.
18 thousand December housing, though opponents The surge caps a year-long
2015 total The twilight hours of New said developers were rushing building boom, attributed to
16 7,781 York City’s most lucrative to take advantage of overly the strong housing recovery
Brooklyn property-tax abatement pro- generous benefits. but also the rush by develop-
14 4,599 gram lured hundreds of archi- Alexander Blakely, an ar- ers to get all possible projects
Queens tects and developers to obtain chitect and partner at AB Ar- under way that could qualify
12 2,006 building permits and begin chitekten, said he worked for benefits.
construction in December. through December on three In all, the Census Bureau
10 Bronx
836 Permits for 7,781 residen- projects with two developers, figures show 56,248 permits Citigroup Inc.’s headquarters at 388-390 Greenwich St. in Tribeca.
tial housing units in 299 proj- who needed to get permits issued in New York City in
Citigroup to Buy
8 Manhattan ects were granted last month, and begin construction on 2015, the most since 1962.
310
according to new U.S. Census foundation footings to qualify The total far surpassed the
6 Staten figures, more than four times for the tax break. most recent peak of 33,911
Island the number issued in Novem- “We had reasonable good permits issued in 2008,
Tribeca Complex
4 30
ber. luck and a good expediter, though dozens of those proj-
The December total was Mr., Blakely said. “There was ects were delayed for years
2 the third highest monthly to- a big push. We had to get the after the financial crisis.
For $2 Billion
tal in at least seven years, fol- foundations in the ground be- The 421-a program is pro-
0 lowing only even bigger fore the end of the year.” viding $1.26 billion in exemp-
’14 ’15 surges in May and June, when One project, a seven-story tions for developers in the
Source: U.S. Census Bureau the same partial tax exemp- concrete-and-glass building at current city fiscal year. It was
THE WALL STREET JOURNAL. tion program, known as 421-a, 195 Clarkson Ave. in the Please see BREAK page A14
BY KEIKO MORRIS Ivanhoe Cambridge, a Cana-
dian pension-fund investor, for
Citigroup Inc. is doubling $1.6 billion. SL Green subse-
down on its commitment to quently bought out Ivanhoe
downtown Manhattan, exercis- Cambridge’s interest. Citi-
ing an option to pay $2 billion group continued to lease the
for the Tribeca buildings it has offices for some of its employ-
just established as its global ees, though its global head-
headquarters. quarters were at 399 Park Ave.
The bank has long had a In the last eight years, the
presence at the two-building Midtown South office market
complex at 388-390 Greenwich and Tribeca, which sits south
St., renewing a long-term of Midtown South, have be-
lease with landlord SL Green come hot areas for technology,
Realty Corp. in 2013 and em- advertising and media compa-
barking on a renovation to nies. Many firms are drawn to
modernize the towers. the 24-7 vibrancy of the neigh-
The move, part of the borhoods, which have diverse
bank’s efforts to consolidate collections of shops and res-
its workforce in the metropoli- taurants and aren’t solely
tan area, will save a signifi- dominated by offices.
cant amount of money, said a
Citigroup spokesman.
“We look forward to com-
The sale allows
SL Green ‘to close
CASSANDRA GIRALDO FOR THE WALL STREET JOURNAL
pleting the renovations to fur-

ther deepen our ties to lower
Manhattan, where our com-
out a very profitable
pany was founded more than position.’
200 years ago,” said Kamran
Mumtaz, the spokesman.
SL Green announced the The office vacancy rate for
deal earlier this week follow- Midtown South was 6.2% in
ing remarks in December by the fourth quarter of 2015, the
an SL Green executive who lowest rate of Manhattan’s
told investors he expected three submarkets, according to
Citigroup “to hit the purchase Cushman & Wakefield.
option.” For Citigroup, establishing
On Thursday, SL Green exits headquarters at the Tribeca
Inside the apartment of tenant LaVerne Rogers, 56, one of the Lenniger Residences’ first tenants when it opened in the Bronx in 2011. ecutives on a quarterly confer- property is one element in an
ence call with analysts said effort to streamline its real es-
For Homeless, a Path to Normalcy

the deal would be profitable tate footprint and reflect a
for the company. “smaller and simpler com-
“It allows us to close out a pany,” according to a 2014
very profitable position, in- memo from Citigroup Chief ex-
BY JOSH DAWSEY got excited,” said Nicole Coc- About 29,000 units exist in yard. The 92-unit building vestment position, we took in ecutive Michael Corbat. At the
chiaro, who runs the support- New York City under the pro- opened in 2011, with the city the asset,” said Marc Holliday, time, the company had 22,000
A group of formerly home- ive housing site called The gram, which began in the bearing virtually all of the $16 SL Green’s chief executive. He employees in the New York
less people played bingo in Lenniger Residences. “It was 1980s. Since November, Mayor million cost to develop it. It also noted the transaction area and had consolidated
the basement of a Bronx such a luxury for them.” Bill de Blasio has committed houses 127 people, including “will result in a reduction of from 16 to seven locations.
apartment building one recent In its continuing effort to to build 15,000 new units, 72 with mental illnesses such indebtedness.” Moving the bank’s home
afternoon, trying to win address homelessness, New while Gov. Andrew Cuomo has as schizophrenia. About 60% Citigroup’s history at the base from Park Avenue to
prizes such as movie tickets York City is banking on sup- promised 20,000 more across were most recently in home- Tribeca location in some ways Tribeca will bring executives
and bottles of laundry deter- portive housing, where resi- the state. Talks between the less shelters. Four case work- reflects the dynamics of the under one roof; the renova-
gent. Residents cheered when dents are given social services state and city to do a joint ers work with Ms. Cocchiaro Manhattan office market. The tions will create a more mod-
LaVerne Rogers won cheap and a range of support—from venture on supportive housing there. Greenwich Street property had ern environment.
bath towels and gave them to psychiatry appointments to fell apart. Another building, built for been the headquarters of The company is opting for
a friend. cooking lessons to assistance The Lenniger Residences $12 million, is almost finished Travelers Group Inc., which an open-office design that is
“The detergent was one of managing their medicine. The stands out in the poor neigh- across the street. There are merged with Citicorp in 1998 minimalist and more egalitar-
the floral scents, and everyone city’s shelters, many of them borhood of Tremont for its about five people vying for ev- and became Citigroup. ian.
in the room gathered and dingy, are packed, and thou- stainless-steel elevators, secu- ery available bed, according to In late 2007, Citigroup sold —Christina Rexrode
smelled laundry detergent and sands are living on the streets. rity guards and large court- Please see HELP page A14 the complex to SL Green and contributed to this article.
39° Weather
Real Feel
Dibs on Parking Spots
Is Snow Job, Some Say
TODAY’S
9 a.m. 20°
HIGH
5 p.m. 19°
Record High
69° (2002) BY PERVAIZ SHALLWANI attached to a stake and stuck
AND HENRICK KAROLISZYN in a nearby snow drift.
MORNING Sunrise/Sunset Another driver jumped out
FLURRIES 7:09 a.m./5:10 p.m. When it comes to shoveling of a truck, burned the sign and
out snow-covered cars and drove off, said Austin Mon-
Saturday’s High then calling dibs on those pre- tanti, 29 years old, a neighbor
cious parking spots, passions who witnessed the encounter,
38° run high. which was reported earlier by
After last weekend’s bliz- the Staten Island Advance.
zard, drivers around New York “To do that? I laughed
N.Y. Sports Lineup City placed cones, garbage hard,” said Mr. Montanti, who
cans and signs in spots they took photos of the burned
7:30 p.m. Friday dug out, hoping they would be signs. “It seems selfish...cry me
Suns @ Knicks open when they returned a river when you have to do
home. But the practice, which some shoveling.”
isn’t legal, doesn’t always go In the days after the bliz-
over well. zard, Mayor Bill de Blasio
AUSTIN MONTANTI (2)
A resident of the Grymes asked New Yorkers to refrain

8:30 p.m. Friday Hill neighborhood of Staten Is- from shoveling out their cars
Nets land erected a humble sign this and suspended parking rules
@ Mavericks week: “Shoveled snow for 3 for the week. But many drivers
hours for this spot. Do not park shoveled nonetheless—and
For N.Y. sports coverage, see A18 in my spot. Thank you.” It was Please see PARK page A16 An attempt to save a parking spot was met with scorn in Staten Island’s Grymes Hill neighborhood.
A14 | Friday, January 29, 2016 * *** THE WALL STREET JOURNAL.
CITY NEWS
Funding Cornell’s
Future Engineers
BY MELANIE GRAYCE WEST The donation has several
parts, but is focused on help-
With a $50 million gift to ing traditionally underrepre-
Cornell University’s College sented students—particu-
of Engineering, Robert Fred- larly women and African-
erick Smith aims to increase Americans—interested in
the opportunities for under- chemical and biomolecular
represented minorities and engineering.
women who want to make a Some $35 million of the
career in tech- gift will create an endow-
DONOR OF nology. ment for the school of Chem-
THE DAY The gift from ical and Biomolecular Engi-
Mr. Smith, 53 neering, which will now be
years old, is ex- renamed for Mr. Smith. The
pected to be announced on money will give the college
Friday. Mr. Smith graduated necessary flexible funding to
from Cornell’s Engineering hire prominent faculty and
college in 1985 with a degree support scholarships for
in chemical engineering. He is graduates and undergradu-
the founder and chief execu- ates, among other things, ac-
tive of Vista Equity Partners, cording to Lance Collins,
a private equity firm based in dean of engineering.
Austin, Texas, which focuses The gift also creates a
on enterprise software. fund for diversity initiatives
The gift is notable both within the engineering col-
for its size and focus, repre- lege and a program that pro-
senting the largest donation vides financial aid and a
from Mr. Smith personally path for incoming minority Above, tenant Andrew Hamilton plays bingo in the Lenniger’s multipurpose room. Below, pictures of Mary Wharton’s four children.
and from the Fund II Foun- students to pursue both an
dation, which he founded.
Mr. Smith said he was
motivated to make such a
large donation at this stage
undergraduate and one-year
graduate degree.
That need-based program
will take some 10 people an-
HELP
in his life because “it’s better nually, Mr. Collins said. Stu- Continued from page A13
to do it while you’re alive dents will earn an under- Steve Banks, who leads the
and you can see the fruits of graduate degree at Cornell’s city’s homelessness services.
it in people. campus in Ithaca, N.Y., fol- Supportive housing is
“In my mind, we’re about lowed by a graduate degree pricey and has opponents. The
to go through…what we call at Cornell Tech, the univer- city estimates it would cost
the fourth industrial revolu- sity’s campus on Roosevelt almost $3 billion to build the
tion and the on-ramps have Island in New York City. 15,000 units. It costs $15,000
CASSANDRA GIRALDO FOR THE WALL STREET JOURNAL (2)

been traditionally closed to It is the first initiative of- to $25,000 per resident per
African Americans and fering a bridge from an un- year to provide services such
women. I think this is a great dergraduate program into as medical and psychiatric
opportunity to provide…on- Cornell’s New York City cam- care, full-time security and
ramps so that they can partic- pus, said Cornell’s president, case workers, according to
ipate in this digital economy.” Elizabeth Garrett. Tony Hannigan, the chief ex-
Mr. Smith’s own path to ecutive officer of Center for
Cornell was inspired in part Urban Community Services, a
by a summer high school nonprofit that gets 75% of its
program for gifted, minority $45 million budget from pub-
students interested in engi- lic dollars.
neering. With one of his first While residents pay 30% of
paychecks from a summer their income or the public
internship with Bell Labs, he benefits they receive, most
bought a Compaq computer. don’t have jobs. Twenty-nine
He loaded that big com- of the 127 residents are em-
puter in the back of his 1977 ployed. Many pay about $200 shelters or the streets to stay
Datsun 280Z, with 120,000
miles, and blazed his way
a month. They are encouraged
to stay forever. About 85%
with them.
“This is their home, so
Police Seek Suspect in Stabbing
from his home in Denver to stay, Mr. Banks said. People there is a sense of ‘my actions New York City police on A security officer working at
Ithaca. That computer, he generally leave traditional affect my own community,’” Thursday said they were the shelter opened the door to
said, led to a campus job. homeless shelters after about Ms. Cocchiaro said. searching for a 21-year-old man the room, then saw the victim
“I ended up signing a a year, city data show. Apartments are about 300 who stabbed a 62-year-old to lying on the floor, said Robert
contract with the College of Neighborhoods often resist square feet and have a closet, death Wednesday night in a Boyce, the New York Police De-
Engineering to compile sta- supportive housing, worried a large bathroom and a private Manhattan homeless partment’s chief of detectives.
tistics for the entering class. about an influx of formerly kitchen. Inside the apartment shelter. “That’s when Mr. White ran
They didn’t actually have ac- homeless and mentally ill indi- of Ms. Rogers, who gave away Investigators identified the out.”
Robert Frederick Smith cess to computers yet.” viduals on their streets. Coun- her towels during the Bingo suspect as Anthony White and Mr. White was also seen on
cilman Donovan Richards said game, paintings and pictures released a photo of him on surveillance video running out
his district in Queens has been line the walls. A couch sits Thursday. of the shelter around the time
Met Conductor Luisi saturated with supportive

housing. He said it leads to
more panhandling and loiter-
ing.
near her bed. Her bathroom is
already stocked with many
towels.
Ms. Rogers, 56 years old
The stabbing occurred dur-
ing an argument inside the
Boulevard, a private homeless
shelter for men in East Harlem,
the victim was found, a law-
enforcement official said.
Mr. White is believed to be
armed, police said. He has been
To Leave for Italy Job “We want to make sure the

Upper West Side, Park Slope,
others get their fair share,”
with seven children, said she
spent much of her life on the
streets, using drugs and sleep-
police said. The victim, whose
name is being withheld pending
family notification, was stabbed
the subject of emotionally dis-
turbed-person calls in the past
and has a psychiatric history
BY JENNIFER SMITH chairs at Lincoln Center for Mr. Richards said. “We don’t ing under bridges in the in the neck and pronounced going back to 2013, Chief
the Performing Arts. want our communities to be Bronx. She spent time in jail dead at the scene a little be- Boyce said.
Fabio Luisi, the principal The New York Philharmonic the only ones who get these and lost custody of her chil- fore midnight, they said. —Pervaiz Shallwani
conductor at the Metropolitan this week named its new mu- sort of facilities.” dren.
Opera, will be leaving that sic director, Jaap van Zweden, Ms. Cocchiaro said there is Eighteen years ago, Ms. The Lenniger Residences, and She pays about $200 a
post next year as he prepares who currently leads the Dallas little violence and few prob- Rogers said, she sobered up. now spends her days shuttling month for the Lenniger apart-
for a new role as music direc- Symphony Orchestra and the lems in her site. Residents She went into a shelter in the between doctor appointments ment and receives public as-
tor of an opera house and fes- Hong Kong Philharmonic Or- gather for meals on holidays. Bronx for several years and for back troubles and speech- sistance. Ms. Rogers talks to
tival in Italy. chestra. He will succeed the They sit in the lobby and chat. tried to get an apartment therapy sessions. She visits her friends in the homeless
Mr. Luisi, 57 years old, has Philharmonic’s Alan Gilbert, They shop for groceries and through the Advantage rental- with her children, who now shelters but doesn’t return to
played an important role at who plans to step down at the teach each other to cook. assistance program, which was spend time with her. In the them.
the Met in recent years, par- close of the 2016-2017 season. One of the biggest prob- discontinued by the state in fall, Ms. Rogers made a “This apartment has meant
ticularly when the opera com- Mr. Luisi, like many in-de- lems, Ms. Cocchiaro said, is 2011. Thanksgiving feast for them the world to me,” she said.
pany’s longtime music direc- mand conductors, juggles mu- that residents want to bring In 2011, she was one of the with turkey, brown rice and Tears welled in her eyes. “It’s
tor, James Levine, was sical obligations on more than their friends from homeless first residents to move into yams. mine.”
sidelined by ill health. one continent. He is also gen-
Named principal conductor eral music director of the Zu-
in 2011 after Mr. Levine suf-
fered a fall, Mr. Luisi took on
much of Mr. Levine’s conduct-
rich Opera and has been
named principal conductor of
the Danish National Symphony
Orchestra, a post he will as-
BREAK housing will be increasingly
infeasible putting the city’s
affordable housing plan in
jeopardy.”
sume during the 2017-2018 Continued from page A13 Barika Williams, deputy di-
The Met’s season. designed to encourage the rector of the Association for
Fabio Luisi He spoke fondly on Thurs- creation of housing, especially Neighborhood and Housing
was named day of his time at the Met, affordable housing, and has Development, said developer
music director where he made his debut in been repeatedly modified to over the years had repeatedly
designate of 2005, and said he hoped to pare back generous benefits. rushed to be part of the old
Opera di work on future projects there. The program was extended 421-a rules before they ex-
Firenze. “They have already asked and modified last June, to re- pired.
for having me as a guest con- quire that developers building “The industry says that
ductor,” he said, adding that rental housing set aside up to whatever the new rules are,
ing load, including several of future commitments would de- 30% of the units for afford- they will doom production,”
Wagner’s “Ring” cycles. pend on his schedule in Flor- able beginning in January. she said
Mr. Luisi is currently in re- ence, Copenhagen and else- The legislation signed by Eventually the industry
hearsals for the Met’s new where. Gov. Andrew Cuomo came adapted to a new reality and
staging of Puccini’s “Manon The Met’s general manager, with a catch, though: The tax then moved on, she said.
Lescaut,” a co-production with Peter Gelb, said through a break would end if the indus- Few Manhattan projects
Festival Hall Baden-Baden that spokesman that Mr. Luisi “is try couldn’t reach an agree- were part of the year-end
will have its New York pre- loved by the Met orchestra ment with unionized con- push for permits. Of the 7,781
miere next month. and chorus and has been one struction workers on a wage permits, 59% were issued in
On Thursday, Mr. Luisi was of our most successful conduc- plan for projects built under Brooklyn, and 26% were is-
named music director desig- tors. We’re grateful for all that the program. sued in Queens. Manhattan,
nate of Opera di Firenze, an he has done for the Met, and When the sides failed to which already had stricter
opera house in Florence, Italy, we’re determined to continue agree by the Jan. 15 deadline, 421-a rules than other parts
as well as its annual spring our relationship with him in the program ended, with little of the city, accounted for 310
festival Maggio Musicale the seasons to come.” signs so far of a rush by the permits, or 4%, according to
Fiorentino. In 2018, he will be- Mr. Levine, 72, has returned Legislature to come up with a the Census Bureau, compared
come music director, a new to the podium and maintained replacement. with 22% for the year.
post. a full schedule over the past “The most recent permit The December permit list
“We have our first meetings two seasons. It wasn’t imme- numbers clearly show the im- has many small projects but
for scheduling projects in a diately clear if the Met intends portance of the 421-a pro- also some large ones, includ-
couple of weeks,” said Mr. Lu- to replace Mr. Luisi, but his gram in the development of ing a 27-story tower with 168
AB ARCHITEKTEN
isi, whose Met contract ends departure does open a possi- rental housing in the city,” apartments in Long Island
after the 2016-2017 season. “I ble path for another conductor said Jamie McShane, a City in Queens. It received a
am working on it already.” to succeed Mr. Levine, a tran- spokesman for the real estate partial building permit on
It is the latest move in a sition that will be closely board. “Without the program, Dec. 30, according to city re-
continuing game of musical watched. A rendering of an Astral Weeks Development in Brooklyn. building rental and affordable cords.
THE WALL STREET JOURNAL. * * * * Friday, January 29, 2016 | A15
CITY NEWS
Charter Leader Threatens to Shut Pre-K

BY LESLIE BRODY City Comptroller Scott legislation to fine or shut
Stringer backed the city’s charters that don’t serve as
Eva Moskowitz, the charter view, but James Merriman, many English-language learn-
school chief and frequent chief executive officer of the ers and special-needs students
critic of Mayor Bill de Blasio, New York City Charter School as the traditional public
threatened Thursday to shut Center, which advocates for schools in their communities.
her new prekindergarten pro- charters, sided with Ms. Charter advocates said the
gram if her dispute with New Moskowitz. state already has legislation
York City over payment isn’t Mr. Merriman said by email requiring charters to focus on
resolved by mid-February. that the charter authorizer, recruiting and retaining un-
Ms. Moskowitz, chief execu- not the city, is responsible for derserved students, and the
tive of Success Academy Char- oversight over a charter’s pre- union was engaging in politi-
ter Schools, appealed to the kindergarten, so “a contract cal posturing during the state
New York state education that purports to vest the city budget season.
commissioner saying the city with that authority is an over- Union President Michael
Department of Education has reach and legally vulnerable to Mulgrew called the current
refused to pay for the net- a challenge.” anti-creaming legislation as
work’s prekindergarten be- The flare-up capped a con- full of holes as “Swiss cheese.”
cause she wouldn’t sign what tentious week where charter Critics of charters, which
BENJAMIN LOWY/GETTY IMAGES

she called an “illegal contract” advocates were at odds with typically aren’t unionized,
granting the city authority union leaders and the city. have long complained that
over curriculum. Charter advocates were up- some high-performing char-
City officials said every set Tuesday when Mr. de Blasio ters systematically nudge out
other provider, including char- objected to New York Gov. An- difficult students, a charge
ter schools, signed the same drew Cuomo’s proposal to raise that their leaders deny.
basic contract, and doing so per-pupil charter school fund- According to the New York
was a condition of participat- ing in New York City, at the City Charter School Center,
ing in the mayor’s preschool Success Academy’s Eva Moskowitz with a student last year at one of the network’s Harlem sites. city’s expense. “We do not sup- 17% of charter students have
initiative. port initiatives that take from special needs, 6% are English-
But the Success Academy wrote to MaryEllen Elia, the Two of the pre-K classes could conflict with the char- one group of children to give language learners and 8% are
network said charters are sup- state education commissioner, are in Manhattan’s Harlem ter’s lesson plans. to another,” the mayor said. in temporary housing.
posed to get freedom from red saying she would cancel pre-K neighborhood and one each in A spokeswoman for the city Mr. de Blasio added the city In the city’s traditional pub-
tape in exchange for rigorous for next year if there is no res- the Cobble Hill and Williams- schools said having Success would welcome additional lic schools, the center says 19%
accountability to the bodies olution by Feb. 15. burg sections of Brooklyn. Academy comply with the state aid for charter school tu- have special needs, 14% are
that authorize them—in this The network says it has 72 Officials at the high-per- city’s quality requirements ition, but the state shouldn’t English language learners and
case the SUNY Charter Schools children in four prekindergar- forming network said the wouldn’t hinder its operations. take away from other urgent 12% are in temporary housing.
Institute. ten classes now and almost city’s pre-K contract limits An official at the state edu- needs to fund it. Those statistics don’t indi-
“Kids are hanging in the 1,800 applications for 126 field trips and use of technol- cation department declined to On Monday, the United Fed- cate the severity of students’
balance,” Ms. Moskowitz seats next year. ogy, among other details that comment on a pending appeal. eration of Teachers proposed disabilities.
Paying Tribute to a Fallen Hero

Atlantic City’s
Former Manager
Upbeat on Future
BY KATE KING nances.
The new legislation, which
After spending a year ex- has yet to be introduced in the
amining the books of a city on Legislature, would include
the brink of bankruptcy, Atlan- state aid for Atlantic City, law-
tic City’s former emergency makers have said.
manager said he is more opti- Mr. Lavin said Thursday he
mistic than most that the understood the governor’s de-
DEMETRIUS FREEMAN/NEW YORK CITY MAYOR’S OFFICE

struggling resort city can be cision to reject the initial aid
saved. package earlier this month.
Kevin Lavin, 54 years old, “To fix Atlantic City, I
was appointed last January by think, you need all the tools,
New Jersey Gov. Chris Christie not just some of the tools,”
to a role that gave him wide- Mr. Lavin said. “I think he
ranging control over the city’s wanted the intervention bill as
daily finances and operations. well, and that was not part of
His yearlong analysis found that package of bills that he
that Atlantic City, absent a had in front of him” last week.
state bailout, faces budget def- On Tuesday, Mr. Christie
icits totaling $391 million over said he chose not to sign the
the next five years. legislation because the bills
Mr. Lavin, who said he was “simply don’t represent the
paid a $135,000 salary as multipronged solution needed REMEMBERING: Mayor Bill de Blasio met with Robert and Linda Ollis Thursday when he announced a new Staten Island Ferry boat
emergency manager, said he to address the complexities of would be named for the couple’s son. Staff Sgt. Michael H. Ollis, 24 years old, was killed in Afghanistan in 2013 when he stepped in
believes the city can fix its fi- the city’s financial challenges.” front of a comrade to protect him from a suicide bomber. The $300 million, 4,500-passenger boat is set to begin service in 2019.
nances and avoid bankruptcy. Even before Mr. Lavin ar-
rived, Atlantic City’s finances
had been subject to approval
Patrol Guide Warns of ‘Ambush’

Former by a state monitor since 2010.
emergency Local officials have repeatedly
manager Kevin said that they fully cooperated
Lavin says with the state’s supervision
bankruptcy and didn’t need further state BY REBECCA DAVIS O’BRIEN would have time to escape or police academy instructor, his voice rising.
should be a intervention. devise a plan, as you unknow- read aloud a concluding sec- Detective Garcia said yes.
last resort. “We’re doing what the A New York Police Depart- ingly walk down the stairs, for tion of the guide, which urges Mark Acevedo, an NYPD
monitors and the emergency ment training guide directs of- a possible ambush,” the guide “vigilant patrol” and “estab- firearms expert, testified that
managers said,” longtime resi- ficers patrolling the stairwells instructs. lishing ties” with the public. the triggers of department-is-
“We have to think about dent Barbara Gillian said this of public-housing complexes to Attorneys for Officer Liang, “We should feel, and be sued firearms are more diffi-
digging ourselves out of the week. “Why is the state so be on guard for “a possible now 28 years old, have said he perceived as, part of the com- cult to pull than other guns.
hole we’re in, but we have all against us?” ambush,” according to evi- fired the gun accidentally. munity we serve,” the guide Officer Liang’s 9mm Glock re-
the assets to do that,” he said Mr. Lavin said the state dence presented Thursday in Prosecutors for the Brook- reads. “The citizens’ concerns quired force of 11.5 pounds of
in an interview Thursday. “I monitor’s powers are limited, the trial of an officer accused lyn district attorney’s office should be our concerns.” force to pull, compared with
think chapter 9 is an absolute and that the state needs of slaying an unarmed man. said they don’t believe Officer about 5.5 pounds for factory-
last resort here, but not neces- greater leeway to enact the The training manual, titled Liang intended to shoot Mr. issued Glocks, he said.
sary.” changes necessary to turn the Police Student’s Guide, was Gurley, but they allege he
Prosecutors allege NYPD Lt. Vitaliy Zelikov
In Atlantic City, the most city around. Chief among them entered into evidence by pros- acted recklessly and criminally Officer Liang acted told the jury about arriving on
pressing problem is liquidity, would be the legal authority to ecutors at the trial of Officer by having his gun drawn as he the scene after the shooting,
Mr. Lavin said. The city is on dissolve the authority that Peter Liang, who has been entered the stairwell from the
recklessly by having ordering help for Mr. Gurley
track to run out of cash by oversees the city’s drinking charged with manslaughter in building’s roof. his gun drawn. and taking the gun from Offi-
April 1 after Mr. Christie, a Re- water utility, he said. the shooting death of 28-year- Officer Liang didn’t imme- cer Liang, whom he described
publican, declined last week to Mr. Lavin has also sug- old Akai Gurley in a stairwell diately report the incident and as “frozen” and “shaken up.”
sign a package of bills that gested the state regionalize at the Louis H. Pink Houses in didn’t try to help Mr. Gurley, During cross-examination, Under cross-examination,
would have given the city several city services, such as Brooklyn on Nov. 20, 2014. prosecutors allege. Mr. Liang’s Robert E. Brown, a lawyer for Lt. Zelikov said rookie police
$33.5 million in state aid. the Police Department, Health According to the guide, attorneys have said their cli- Officer Liang, pointed to the officers were often assigned to
Earlier this week, the gov- & Human Services Department which was used in 2013 when ent was in shock. section on so-called vertical patrol troubled neighborhoods
ernor announced he would and the tax assessor’s office. Officer Liang attended the po- The training guide instructs patrols, when officers scour with higher crime. The 75th
support legislation that his Mr. Lavin’s work in Atlantic lice academy, police entering a officers to immediately report the city’s public-housing de- Precinct, where Officer Liang
aides said amounted to a take- City ended this month. This stairwell from the roof should “any unusual crime, occur- velopments. was assigned, was “among the
over of Atlantic City, including week, he was back at work as avoid making noise that could rence or condition.” “They have to be on guard most violent” precincts in the
giving the state the ability to co-president at a new bou- identify them as officers. On the witness stand in for a possible ambush? That’s city, Lt. Zelikov said.
sell city assets and force the tique consulting firm called “Criminals, alerted to your state Supreme Court in Brook- what they’re trained in the Testimony is scheduled to
City Council to pass ordi- Ankura Consulting Group. presence through sound, lyn, Detective Nathan Garcia, a academy?” asked Mr. Brown, resume Monday.
the Midwood neighborhood and tions this summer, a season that paintings they were asked to police detective Bo Dietl is suing NEW YORK CITY
Greater then fled in a car that crashed
several blocks away, police said.
honors the 400th anniversary of
the Bard’s death.
verify by a now-defunct New
York City art gallery.
Cooper Union for $110,000, say-
ing the college breached its con-
Three Residents
New York Police said three suspects ex-
ited the car, one with a gun in
“The Taming of the Shrew,”
running May 24 to June 26, will
Knoedler & Co. and its former
president, Ann Freedman, are ac-
tract by firing the firm without
proper notice over comments
Have Zika Virus
City health officials say three
Watch his hand. An officer fired shots,
hitting the gunman in the torso,
have an all-female cast directed
by Phyllida Lloyd. “Troilus and
cused of fraud and racketeering
in a civil lawsuit filed by Domen-
Mr. Dietl made during TV ap-
pearances.
New Yorkers have contracted the
Zika virus. All three had recently
police said. Cressida,” directed by Daniel Sul- ico and Eleanore De Sole. The Mr. Dietl’s firm, Beau Dietl & been to countries that have ex-
Police apprehended a second livan, will run July 19 to Aug. 14. De Soles say the gallery know- Associates, parted ways with perienced a Zika outbreak.
suspect and were looking for the Both productions are free and ingly sold them a fake Mark the school in 2014. Students had The virus is believed to
third, who fled the scene. will take place in Central Park’s Rothko painting for $8.3 million. complained about comments Mr. spread to people through the
BROOKLYN —Pervaiz Shallwani Delacorte Theater. Ms. Freedman and Knoedler Dietl made, including remarks bites of infected mosquitoes.
—Pia Catton have said they too were duped. about protests held in Ferguson, Most people don’t need to be
Police Shoot Gunman CENTRAL PARK —Thomas MacMillan Mo., over the death of a black hospitalized from the disease.
After Robbery: NYPD Shakespeare in Park NEW YORK CITY 18-year-old shot by police. But officials are studying
Police shot and wounded a MANHATTAN Mr. Dietl said in an interview whether some severe birth de-
man who was wielding a gun fol- Choices Announced
Experts Take Stand Thursday that students “ended fects can be linked to an infec-
lowing a robbery at a cellphone The Public Theater will pres- in Art-Fraud Trial Bo Dietl’s Company up controlling the university.” tion during pregnancy.
store Thursday, authorities said. ent “The Taming of the Shrew” Two experts testified Thurs- Sues Cooper Union A Cooper Union spokesman Officials said one of the sick-
The suspect was one of two and “Troilus and Cressida” as its day that they couldn’t authenti- A security firm headed by declined to comment on the suit. ened New Yorkers is pregnant.
men who robbed the store in Shakespeare in the Park produc- cate purported Jackson Pollock television personality and former —Mike Vilensky —Associated Press
A16 | Friday, January 29, 2016 * * THE WALL STREET JOURNAL.
FEEDBACK FRIDAY
Different Takes: Horse Carriages and College Admissions
Welfare of Humans carriage drivers is exactly Instead, I found a col- dents see more, not less,
Should Matter, Too that. Still, keeping horses lection of bromides about complexity and inaccessi-
Real-estate developers off the streets and giving how students should be bility from these propos-
Steve Nislick and Wendy them relief from the “authentic” in their activ- als. Counselors have been
Neu had a lot to say drafty, cramped stalls is ities and more “caring” in vocal in online forums
about the welfare of ani- undeniably—for them—an their activities as a way about their frustration
mals and their love of an- improvement. to enhance their college with the seeming blind-
imals (“Duo Defends Pro- Dianne O’Connor applications. In the name ness of college admission
posal for Carriage Buffalo, N.Y. of lessening pressure on offices to the situation on
Horses,” Jan. 22). What students, the report the ground. Praise for the
about the welfare of the Report on College Entry merely spreads the pres- report ignores the signifi-
hardworking men and Doesn’t Deserve Praise sure. The most frustrat- cant opposition of college
women who drive the As a longtime member ing aspect of the report is counselors.
horse carriages or work of the college admission that, aside from changing Willard M. Dix
in the stables, many of and college counseling or adding more essays to Chicago
whom will lose their world, I looked forward the college application, it
jobs? Isn’t their welfare to the release of the does nothing to challenge Letters intended for publi-
important, too? “Turning the Tide” report colleges themselves to re- cation in the Greater New
Craig Sheldon (“Colleges Detail Move to vise their approaches to- York section of The Wall
New York Rethink Entry Standards,” ward the process. It Street Journal should be
Jan. 21). I anticipated doesn’t address how mar- sent to: gnyltrs@wsj.com.
Agreement Isn’t Perfect, that it would suggest keting, rankings and in- Please include contact in-
But Horses Will Benefit hard-hitting reforms to tercollege competition for formation, including your
address and phone number.
Someone once said ease the stress on college students have altered ad- Letters should be a maxi-
that a compromise is applicants and address mission behavior. mum of 300 words, and are
when no one is happy. The the particular needs of Those of us involved subject to editing.
deal being made with the underserved students. with underserved stu-
PARK spaces following a storm, she

said.
New York City isn’t alone in
dealing with the dibs issue.
in the Jamaica section of
Queens. “When you work, you
want to come home and be
able to park.”
Continued from page A13 Ahead of the storm, the Phila- Another woman from Ja-
some who toiled for hours delphia Police Department put maica, Queens, who declined to
didn’t want their hard work to out a parody of the Drake song give her name for fear of back-
go to waste. “Hotline Bling” to warn resi- lash, protected her spots with
HENRICK KAROLISZYN FOR THE WALL STREET JOURNAL

“I’m 74 years old. I shoveled dents not to save parking two garbage cans.
my spots. The last thing I want spaces. (“You need to call us on “We didn’t have a choice,”
to do is shovel anything again,” your cellphone/Late night she said. “I’m a single woman
said Madeleine Gnazzo, who when you see that cone.”) and I live alone. I shoveled my
dug out two spots in front of In Boston, where city offi- spot to come back and see
her Staten Island home and cials tweeted reminders that someone else take it? I have to
then used two orange cones to drivers can’t save spaces, a do this. It’s survival.”
protect them. man was shot in the abdomen In Red Hook, Andrea San-
They city’s transportation during a dispute over a shov- som said the recent influx of
department prohibits unoffi- eled out space. new residents has made park-
cially reserving a parking After a 40-inch snowstorm ing a difficult situation, which
space, including “placing any in Chicago in December 2000, the storm exacerbated.
box, can, crate, handcart, dolly the rancor over proper eti- So yes, she admitted, she
or any other device, including quette led New York University left a cone in front of her
unauthorized pavement, curb Prof. Richard Epstein, who was A cone marks the parking spot for one Staten Island resident on Dudley Avenue near Grand Avenue. house so her husband, a con-
or street markings or signs in then at the University of Chi- tractor, could park there.
the roadway.” cago, to write a paper in which widely tolerated, if not exactly storm for a “blocked street,” city received 28 complaints. But her actions weren’t to-
“You can’t save parking he explored the calling of dibs. encouraged.” which refers to obstructions in- Residents who called dibs tally self-interested—she also
spots on a public street,” said a “This rule necessarily re- He also wrote that no one cluding “garbage, merchandise, said they were aware what paid two people $90 to help
New York Police Department duces the parking capacity of would undertake shoveling out dumpster or trash can.” they were doing was techni- shovel two additional spots on
spokeswoman. the street at a time when gath- spots without the incentive of For the five-day period from cally wrong, but argued it was the same block.
How frequently the rule is ered snow makes parking getting to park there. Saturday, when the storm hit, an issue of labor, supply and “I’m totally ashamed by the
enforced isn’t tracked, though spaces especially difficult to In New York, officials saw a to Wednesday, the city received demand. cone,” Ms. Sansom said. “The
officers use discretion when it come by,” Mr. Epstein wrote. slight uptick in complaints to 37 complaints; for the five day “Everyone is saving their only thing that redeems it is
comes to parking and parking “Yet the practice seems to be the city’s 311 system after the period before the storm, the spots,” said Annette Harris, 43, that I cleared three spots.”
DON’T MISS WSJ THIS WEEKEND
OFF DUTY
Are Kitchens the New Man Caves?
With men increasingly involved in cooking at home, they’re starting to weigh in on the room’s design. A look
at what this means aesthetically and functionally.
Credit: Stephen Kent Johnson for The Wall Street Journal, Styling by Nidia Cueva
©2016 Dow Jones & Company, Inc. All rights reserved. 6DJ3158
REVIEW REVIEW OFF DUTY

You Will Speak Every Bravery on Four Legs Maximizing the Mini
Language For too much of human history, we’ve ignored our
debt to animals. Columnist Amanda Foreman on the
Many cars in the minicrossover segment are too
cute by half. With the CX-3, Mazda offers a look
A decade from now, powerful new translation tools heroics of dogs, horses and other creatures. that’s big on sophistication.
and hardware may enable anyone to understand Credit: Smithsonian Institution’s National Museum of American History Credit: Mazda
and speak any language in real time.
Credit: Mackenzie Stroh for The Wall Street Journal (model);
Illustration by Julien Pacaud
INSIDE YOUR PAPER, ONLINE & IN THE WSJ APP TOMORROW.

THE WALL STREET JOURNAL. * * Friday, January 29, 2016 | A17
ARTS & ENTERTAINMENT
From Brooklyn Warehouse to ’70s Tropical Resort

BY DARRYN KING warehouse, now locatable as
“The Grand Paradise” on
Mounds of snow may still Google Maps, was immersive
be hulking on many New York theater’s equivalent of a blank
streets, but inside one Bush- canvas, said Mr. Morris: a
wick warehouse, there are completely empty steel and
more than a few signs of a concrete box.
swinging tropical Shangri-La. It took around 75 people—
It isn’t a hallucination. carpenters, scenic painters, set
Opening this weekend, “The dressers and designers of all
Grand Paradise” is the latest stripes—to transform the dis-
work from Third Rail Projects, used space into a performance
a dance-theater company venue, including the installa-
whose work breaks down bar- tion of air conditioning and
riers between audiences and fire sprinklers.
the action, as in their long-
running production “Then She
Fell.”
‘This is our first
In these 360-degree theater opportunity to...
experiences—where audience
members inhabit and explore
build everything
the same space as the per- from the ground up.’
formers—the transporting
powers of set dressing and de-
sign play an especially impor- “As a company, this is our
tant role. first opportunity to quite liter-
“Any fault in authenticity, ally build everything from the
whether in the paint treat- ground up,” Mr. Morris said.
ments or décor, could take the “We’ve not only been building
audience out of the experi- Edward Rice and Robert Vail, above, rehearse ‘The Grand Paradise’ in the Bushwick warehouse Third Rail Projects has developed for a show, but building a venue.”
ence,” said set designer Elisa- its latest immersive theater piece. Co-Artistic Directors Zach Morris and Tom Pearson, below left, and part of the set, below right. Since Third Rail began cre-
beth Svenningsen. “The deeper ating site-specific and site-
you look, the more you dis- adaptive work in 2006, their
cover other layers and de- productions have been inextri-
tails.” cably tied to the spaces in
In “Then She Fell,” visitors which they are performed.
found themselves in a sinister With “Then She Fell,” the cre-
psychiatric ward overrun with ative team remapped the
the characters from “Alice’s show’s narrative to the topog-
Adventures in Wonderland” raphy of each of its venues,
and decorated with somewhat from an abandoned Green-
seedy Victorian accouter- point hospital to its current
ments. This new production home in a former school.
AGATON STROM FOR THE WALL STREET JOURNAL (3)

whisks its guests to a fantasy- This time, because the show
island-like environment of tiki and the space have evolved to-
huts and massage rooms gether, Mr. Morris, his co-ar-
where they can meet and min- tistic directors Tom Pearson
gle with lifeguards, cabana and Jennine Willett and the
boys and mermaid performers. rest of the creative team have
This time around, the mood been able to fine-tune every
is permeated more by piña co- aspect of the experience. That
ladas and suntan lotion than ranges from practical concerns
opium. such as sight lines and audi-
But the experience isn’t just ence flow to the audience-per-
a fun-in-the-sun reverie. Over former interactions them-
two hours, “The Grand Para- selves, including a potentially
dise” inspires a loose medita- steamy one-on-one session
tion on forbidden desires and disco and the Bee Gees, up to when a hidden doorway in a Atari videogame system, a performers’ bodies, to not be with a lifeguard.
the passage of time. Its inter- 60 audience members wander beach cabin leads to a cavern 1977 “Star Wars” fan magazine too dusty, to not give anyone “The protagonist is truly
woven narrative threads draw through a variety of scenes, under the dunes. and vintage pornography. sinus infections,” said Zach the audience,” said Mr. Morris.
inspiration as much from the occasionally being coaxed into They are also encouraged to “The Grand Paradise” also Morris, one of Third Rail’s “It’s more about the audience’s
ancient myths of Midas and the action, from conga lines to snoop around the set, which is boasts an indoor beach with three co-artistic directors, journey through these scenes
Venus as by the real-life en- intimate bedroom encounters. rife with authentic ephemera five tons of sand. Evidence of who are involved with the pro- than a single character’s jour-
tanglements between the band In Ms. Svenningsen’s set, from the late ’70s and early Third Rail’s literally granular duction at every level, includ- ney. So every scene and envi-
members of Fleetwood Mac. visitors will pass through both ’80s—sourced largely from attention to design detail: It ing design. “Volleyball sand is ronment is engineered de-
To a shifting soundtrack of familiar-seeming spaces and yard sales and thrift stores— isn’t just any sand. apparently the answer.” signed with their experience
breezy Polynesian Muzak, eerie dreamscape locales, as including stacks of vinyl, an “You want it to not stick to A few months ago, the in mind.”
HEARD & SCENE
Lessons From an Austrian Spa: ‘You Have to Re-tox to Detox’

Right now nothing seems meal at the Waverly Inn, on Lanserhof properties, but, birthday present, and has Yes, in a sense, said Elke gram, and that many attend-
more ideal than leaving all behalf of Lanserhof, a kind- back in New York, “I had a now been four times. But Benedetto-Reisch who runs ees admitted, upon leaving,
this slippery slush behind of medical clinic that has really hard time describing others—like Liliana Caven- the team of doctors and ther- “I feel like a newborn.”
and jetting off been described as “the Rolls- them to my friends and why dish, Zani Gugelmann, Val- apists and had also flown in “I’d love to feel like a
to a spa in the Royce of health resorts,” they were so special,” said esca Guerrand-Hermès, Kelly for the event. But she called newborn,” said the model
mountains of with locations in Lans, Aus- the statuesque blonde who Rutherford, BJ Topol Blum, it “our famous oat roll.” Carolyn Murphy, as she fin-
Austria. The tria, and a newer facility on didn't appear in need of any Jennifer Creel, Stuart Parr, Frau Dr. Benedetto-Reisch ished off a martini and dove
next best-ish Lake Tergen in Waakirchen, kind of spa treatment what- Jacqueline Schnabel, Tiina added that hikes, or as she into a plate of salmon with
thing might Germany, called Lanserhof soever. “It’s not so much a Laakkonen and Marco Bram- called them, “awakenings in braised cabbage. “I’d even
MARSHALL have been a Tegernsee. spa. It’s really about finding billa—appeared to be neo- the forest” were strongly en- settle for feeling like a tod-
HEYMAN dinner in the The evening came at the the time and space to return phytes, perhaps even in couraged as part of the pro- dler.”
West Village in behest of Michaela Cordes, to yourself.” search of a gratis voyage or
honor of a spa the editor in chief of GG Among the guests were at the very least a discount.
in the mountains of Austria. magazine, which has its the artist Cindy Sherman, Regardless, they had lots
This would explain headquarters in Germany. who sent herself to Lanser- of questions.
Wednesday’s turnout for a Ms. Cordes has been to the hof Tegernsee as a 60th Like: How long should one
typically stay at Lanserhof? JANUARY SHOWS SOLD OUT.
SHEN YUN RETURNS
“We ask that you come for
a minimum of seven days,”
said Christian Harisch, the
managing director and CEO
IN MARCH!
of Lanserhof, who came in
from Austria with his wife
just for the dinner Wednes-
day night.
Though, Mr. Harisch ex-
plained, a more effective
time period would be three
weeks. Last year, he added,
two separate guests, one a
princess from Qatar and a
gentleman from a wealthy
German family, each stayed
around 150 days.
Even Ms. Sherman seemed “Beautiful...
to think this was a long a nimble mastery.”
KELLY TAUB/BFA (4)
time.
Another inquiry: if this — Chicago Tribune
Carolyn Murphy, above, at a was a dinner thrown by a
dinner for Lanserhof, a spa in spa, why was there so much
the mountains of Austria. alcohol being served, and,
furthermore, was it OK that
guests were smoking ciga- “5,000 years of
rettes on the outdoor patio Chinese music and dance,
of the carriage house?
Cigarette smoking is al- in one night!”
lowed outdoors at Lanserhof, — The New York Times
insisted Mr. Harisch, who
was drinking a Diet Coke.
“It’s not a prison,” he said.
And as for the alcohol,
Nils Behrens, the managing
director of Lanserhof cheer-
fully explained: “You have to
re-tox to detox.”
At our table, no one even Experience a Divine Culture
looked at the bread basket.
But, was it true that one of DAVID H. KOCH THEATER Tickets start at $80.
the foods served at Lanser-
LINCOLN CENTER • MARCH 2-13 800-818-2393
NJPAC • APRIL 29-MAY 1
hof was a stale cracker
Jenni Muldaur and Cindy Sherman, left, and Michaela Cordes, which guests are taught to ShenYun.com/ny
Bernard Lambilliotte and Anita Lischke, above. chew proficiently?
A18 | Friday, January 29, 2016 * * THE WALL STREET JOURNAL.
SPORTS
Before Title Shot, Fighters Must Talk the Talk
In only one sport would a
rising prospect call a proven
champion an ‘English
muffin-eating sucker’
BY ALEX RASKIN
Brooklyn boxer Heather “The

Heat” Hardy didn’t have a fight
scheduled this week—or at least not
a physical one. Instead, the UBF and
WBC super bantamweight champion
was roped into a pair of public argu-
ments with her next opponent, Shelly
“Shelito’s Way” Vincent.
On Monday, her 34th birthday,
Hardy made a call into Sirius satel-
lite radio, where Vincent had been
likening Hardy’s blonde hair to that
of Barbie. Then on Wednesday, after
Vincent improved to 16-0 with an
unanimous decision over Renata
Domsodi at B.B. King Blues Club &
Grill in Times Square, Hardy (15-0)
climbed into the ring for another
pointed exchange.
In both instances, Vincent did the
majority of the talking, some of
which was profane and all of which
was delivered in her thick Rhode Is-
land accent.
The two have been eyeing each
other for years, and with the help of
their promoter, Lou DiBella, hope to
fight on television in the near fu-
ture. The animosity on display be-
gan as an obligatory promotional
technique, meted out in a series of
sound bytes. But, perhaps not sur-
prisingly, it has begun to seep into
personal territory.
“It’s like half and half,” Hardy said
when asked if her conflict with Vin-
cent was true hatred or just theater.
Being a boxer requires athleticism
and toughness inside the ring. Out-
side the ring, it is equally important
to cultivate the kind of conflict that
can tack an extra zero onto a four-
or five-figure payday.
That’s what happened earlier in Clockwise from top: Brooklyn fighter Jarrell Miller during his victory last week over Donovan Dennis; Heather Hardy, left, and Shelly Vincent throw verbal jabs after
Hardy’s career, when Vincent began Vincent’s victory Wednesday night over Renata Domsodi in New York; Vincent jabs at Domsodi; promoter Lou DiBella with former champion Evander Holyfield.
antagonizing her after fights. “I
know that she started doing this as beyond professional at this point. people want to watch you to see you heavyweight title, although that isn’t Miller.” More fuel for the fire.
promotion,” said Hardy. “I didn’t pay “It started out where I didn’t re- lose, that sells just as many tickets.” considered one of the four preemi- From there, DiBella and Miller jabs
her any mind.” ally care,” said Hardy, “but now I Rising heavyweight prospect Jar- nent belts.) Forcing himself into a on Twitter, which was a victory in it-
Vincent insists her disdain is genu- want to punch her in the face.” rell “Big Baby” Miller (16-0-1), who is conversation with the sport’s biggest self, according to Dmitriy Salita, the
ine—“It’s like Yankees and Boston,” DiBella, the Brooklyn native and not among DiBella’s fighters, walked and best by insulting them was cer- Brooklyn-based promoter who han-
she said—and that it grew from a be- foremost promoter of local boxers, that line following his knockout vic- tainly a step in the right direction. In dles Miller. “DiBella is one of the best
lief that Hardy was avoiding her. with a stable of some 50 pugilists un- tory on Friday over Donovan Dennis fact, it’s nearly as important as win- promoters in the word,” said Salita,
Hardy rejects that accusation, saying der his banner, didn’t hesitate to tap in Tucson, Ariz. With the help of ning the fights themselves. himself a welterweight who was pre-
that a contractual conflict with pro- into that conflict. He had promoted Showtime’s cameras, Miller took aim DiBella appreciated Miller’s at- viously promoted by DiBella. “To have
moters prevented a bout. Hardy for years. Now he represents at higher-ranking heavyweights like tempt to position himself for a title him talking about Jarrell, who is not
The stalemate continued until Vincent as well, paving the way for a IBF champion Charles Martin and shot, even if he disagreed with most his fighter, means Jarrell is becoming
things flared up after Hardy’s defeat fight between the two. WBC title holder Deontay Wilder, of his verbal assaults. very relevant in the division.”
of Christina Fuentes on Feb. 12, Vincent has said that she doesn’t both of whom recently fought and “He’s getting television dates with But as much as he likes the way
2014. Once again, Vincent was in at- mind assuming the role of “the bad won on DiBella’s Jan. 16 card at Bar- guys he’s incredibly likely to beat,” Miller markets himself, DiBella in-
tendance, only this time, their con- guy” in a fight with Hardy—some- clays Center. Miller even called Brit- said DiBella. “Coming out of it and sists the former kickboxer needs a
frontation flared in the immediate thing DiBella encourages. ish heavyweight Anthony Joshua being brash, he has no right calling signature win before he can “get into
vicinity of Hardy’s family. Her “You don’t have to be loved,” said “that Calvin Klein, English muffin- out the top of the division. But you six figures.”
daughter Annie, 9 years old at the DiBella, who pointed to controversial eating sucker.” know what: people want to hear it.” Indeed, if Miller does beat some-
time, left Roseland Ballroom in tears fighters like men’s champions Tyson As Miller explained, his hope is to Instead of entertaining the thought one significant, he won’t have to care
that night. Vincent has denied any Fury and Floyd Mayweather. “Not ev- win three fights in 2016 and begin of giving Miller a title shot, DiBella what DiBella says. “I would hope that
responsibility. “I would never get in erybody has to love you. They have the 2017 in the heavyweight title dis- suggested on Twitter that his own by the end of the year, I’ll be up in
a kid’s face,” she said. to care about you. Not everyone has cussion. (Friday’s win earned the prospect, 26-year-old Brooklyn resi- the rankings, and you’d be a fool to
Regardless, for Hardy, the feud is to watch you to see you win. If some Brooklyn native the WBA-NABA dent Adam Kownacki, would “destroy call me out,” Miller said.
Sore Star Leaves Knicks in a Bind

BY CHRIS HERRING lemma between winning now and matters worse, the 76ers game and a
taking a longer view, “so we can fo- subsequent game against Utah went
The much-improved Knicks are re- cus on a process that doesn’t ever into overtime, with Anthony playing
lying less on Carmelo Anthony to place us in that position.” a total of 90 minutes.
carry them every night, thanks in Indeed, the Knicks have taken a Fast-forward to this week, Fisher
large part to the contributions of cautious approach with several play- suggested that Anthony’s knee sore-
BOXING (CLOCKWISE FROM TOP): ESTHER LIN/SHOWTIME; EDWARD DILLER/DIBELLA ENTERTAINMENT (2); GARY GERSHOFF/WIREIMAGE; ERIC GAY/ASSOCIATED PRESS (ANTHONY)
newcomers Kristaps Porzingis and ers this season—Porzingis during the ness might be the result of his body
Derrick Williams. But there’s still no preseason and Arron Afflalo during compensating for the sore ankle that
getting around the reality that they never fully healed. If that’s the case,
need Anthony to win games: They it would be concerning to say the
were 0-5 without him this season Should the Knicks sit least that Porzingis—perhaps the
heading into Thursday’s game team’s biggest injury risk, and the
against the division-leading Raptors a hurting Anthony, or player the Knicks have the greatest
in Toronto—a game he missed due to grab at a slim chance responsibility to protect—has con-
lingering soreness in his surgically tinued to play despite considerable
repaired left knee. Anthony said he to make the playoffs? soreness in his right foot.
hoped that skipping the game would In fairness, the Knicks have
give him a better chance to play Fri- clearly done something right (or
day against Phoenix. Calling in Sick clearly gotten lucky) from a medical
Anthony’s decision to rest while The NBA teams with the most games standpoint this season. In contrast
his team, on the fringe of the East- missed due to injury in the past 10 seasons. to recent years, the team has en-
ern Conference playoff race, lan- TEAM GAMES joyed good health, with players
guishes without him, encapsulates N.Y. Knicks 1,904 missing a total of just 32 games due
the Knicks’ conundrum: Take the Milwaukee Bucks 1,900 to injury—the sixth-fewest in the
long view with their banged-up star, NBA, according to In Street Clothes,
Los Angeles Lakers 1,886
or grab their playoff chance while a site that tracks and analyzes the
it’s still available? Portland Trail Blazers 1,848 league’s injury data.
Conventional wisdom suggests Golden State Warriors 1,830 That’s a huge difference from the
that a team, even a mediocre one, Source: InStreetClothes.com past four years, when the Knicks
can get away with resting a star The Wall Street Journal. ranked fourth-worst, eighth-worst,
player for a couple games here and second-worst and fifth-worst in
there. But the Knicks have already games lost to injury. In fact, over the
seen the perils of that approach. Af- the first two weeks of the regular sea- past 10 seasons, no team has had
ter taking a tie or a lead into the son, for two examples. But it appears more injury absences than the
fourth quarter in each of the five they could have been more judicious Knicks, according to the site.
games Anthony missed before Thurs- with Anthony. Recently, though, a handful of
day, the Knicks collapsed down the Anthony’s left knee began giving players—including Anthony, Porzin-
stretch each time. him problems earlier this month, gis, Lance Thomas and Jose Calde-
The truth is, the Knicks aren’t re- shortly after he returned from a ron—have experienced flare-ups that
alistically competing for a champi- right ankle injury. After missing two landed them on the injury report. De-
onship this season, so their greater games, he suited up on Jan. 18 spite whatever playoff hopes they’re
responsibility is to safeguard the fu- against Philadelphia and didn’t look harboring, the Knicks would be wise
ture. Yes, Anthony is 31, and wants comfortable. He turned in one of the to continue prioritizing the long view
to win now. But he’s under contract worst shooting performances of his over whatever might happen on the
for another 3½ seasons for about career (7-of-28) and showed limited court. New York has a chance to be-
$90 million, meaning it’s in the mobility and lift, getting six of his come a legitimate contender with a
team’s best interest to assure he is shots blocked. couple more pieces. If Anthony, Por-
healthy for the long haul. “I wasn’t capable of doing the zingis or another important contrib-
“I think the way we do things things I’m capable of doing,” Anthony utor succumbs to a chain of injuries
daily, weekly and monthly helps us said after the game, acknowledging because he wasn’t afforded ample re-
stay out of that place,” coach Derek that he felt “sore” and lacked balance covery time, it will needlessly hinder
Carmelo Anthony missed his second straight game Thursday with a sore knee. Fisher said, when asked about the di- and spring in his right foot. Making the team’s promising future.
BUSINESS WATCH B5 | CROSSWORD B6
BUSINESS & TECH.

Microsoft Draws Oil’s Steep Decline
Strength From Cloud Sets Stage for Deals
EARNINGS | B3 ENERGY | B4
© 2016 Dow Jones & Company. All Rights Reserved. * * THE WALL STREET JOURNAL. Friday, January 29, 2016 | B1
Amazon Dashes High Expectations
BEHROUZ MEHRI/AGENCE FRANCE-PRESSE/GETTY IMAGES

BY GREG BENSINGER pressure Amazon now faces cloud computing and hot-food more consumers opt for the its Prime unlimited shipping
after teasing Wall Street in re- delivery. convenience of ordering goods membership with streaming
Amazon.com Inc. on Thurs- cent quarters with tighter Amazon’s 22% revenue and services from their couch. video and other benefits.
day delivered the largest quar- costs and black ink. Amazon bump to $35.7 billion just Other Web retailers are stall- And it has built up a huge
terly profit in its 20-year his- until recently put nearly every missed Wall Street’s estimates, ing, including eBay Inc., which lead on rivals in offering
tory, but investors apparently dollar it generated back into on Wednesday failed to show cloud-computing services
$35.7B
are thirsty for more after sub- the business. revenue growth for the fourth through its lucrative Amazon
sisting on thin margins for The company was one of straight quarter and warned of Web Services unit, which rents
years. the big growth stories among a tepid start to 2016. computing power to other
The online retailer’s shares technology stocks in 2015, Amazon’s fourth-quarter For the year, Amazon companies from thousands of
plunged as much as 15% in af- more than doubling its market revenue, which was shy passed $100 billion in revenue servers. Sales from that busi-
ter-hours trading, erasing value to over $300 billion last of Wall Street’s estimates. for the first time in its two-de- ness jumped 69% to $2.4 bil-
more than $30 billion in mar- year and easily outperforming cade history. It took rival Wal- lion, while operating profit Revamping the Iranian airline
ket value despite a profit that other tech giants like Alpha- Mart Stores Inc. 35 years to nearly tripled to $687 million, industry would boost business.
more than doubled to $482 bet Inc., Apple Inc. and Face- marking the sixth straight reach the same mark in 1997, reinforcing its place as Ama-
book Inc. With its $99-a-year
million in the holiday period.
It was also the third straight
quarter of profits, the first
Prime unlimited shipping pro-
gram, Amazon has become a
year it has come up short for
this period, according to Mark
Mahaney, an analyst at RBC
two years after Amazon.com
opened for business.
Amazon has captured more
zon’s fast-rising growth en-
gine. Still, AWS’s revenue
growth slowed from 78% in
Iran’s
time Amazon has done so in
more than three years.
The failure to meet outsize
dominant force in retail and
has demonstrated it can
quickly gain market share in
Capital Markets.
But that gain contrasts with
stagnant holiday sales from its
customers by aggressively
building out new warehouses
near urban centers to speed
the previous three months as
Amazon drained more costs.
Amazon has in recent
Aviation
Please see AMAZON page B4
expectations underscores the new businesses as diverse as brick-and-mortar rivals as deliveries and by bulking up
Plans Inch
Race for Web Sales Leaves Some in the Dust Forward
BY ROBERT WALL
Athletic retailer Finish Line’s problems show
TEHRAN—After a flurry of
the high stakes of retooling for e-commerce big deals aimed at revamping
Iranian commercial aviation,
BY LORETTA CHAO officials and executives here
AND STEVEN NORTON face a host of obstacles that
could keep many of their big-
Many traditional retailers gest ambitions grounded for
are struggling as their custom- some time to come.
ers move online, hoping that Iranian officials have been
costly investments to retool eager to court Western buyers
their supply chains for e-com- for the nation’s crude oil and
merce will eventually pay off. natural gas, but they have sig-
Earlier this month, athletic naled that civil aviation also is
retailer Finish Line Inc., which a priority.
installed new infrastructure in Iran has committed to buy-
September to fill online or- ing 118 commercial jets from
ders, said it would close about Airbus Group SE—an order of
a quarter of its 600 stores af- about $27 billion at list
ter its new warehouse-man- price—to help replace its ag-
agement system failed to pro- ing fleet of jetliners, some
cess orders fast enough. The bought before the Iranian Rev-
company said the failure olution in 1979. Tehran also
cost it $32 million in has signed deals this week
lost sales as the peak with a handful of French firms
holiday selling sea- to revamp Tehran’s Imam Kho-
son got under way. meini International Airport.
Finish Line’s prob- But residual financial sanc-
lems show how tions, capital restrictions, ag-
much is at stake as ing infrastructure and limits
retailers try to ca- on Iranian flights abroad could
ter to online cus- slow growth, Iranian and for-
tomers, an effort eign officials warn.
that typically raises a “Our infrastructure at this
company’s costs and shrinks moment isn’t enough,” said
RICHARD BORGE
its profit margins. Bagherian G. Hossein, deputy

Retailers are investing chief executive at the Iran Air-
heavily in state-of-the-art soft- ports Co.
ware, redesigning their ware- Revamping Iran’s airports
houses and training employ- and commercial fleet would be
ees, with the goal of getting to reverse the decline in profit manages fulfillment centers crucial to help the country
their merchandise to custom- margins that typically accom- for retailers and other custom- open up to foreign business
ers seamlessly, whether they panies increased online sales, ers. “Nobody’s found the an- travelers eager to take advan-
buy online or in a store. The or to slow the rise Ama- swer yet.” tage of the removal of sanc-
strategy, known as “omnichan- That can boost the potential tion,” said Imran Jooma, head zon.com Inc. and other online- For most retailers, the ef- tions. It eventually could help
nel” retailing, demands a far for disruptions, which can of Finish Line’s omnichannel only retailers. fort to adjust to online sales boost tourism, another poten-
more complex and intercon- quickly translate into lost strategy, in an interview last “The ground is shifting be- starts at the warehouse. They tial new revenue stream.
nected supply chain. sales—as they did at Finish fall. “We invest in the supply neath us, and the dust hasn't have redesigned facilities orig- A new fleet of commercial
Contributing to the risks: Line—because consumers have chain to do exactly that.” settled,” said David Hauptman, inally equipped to send bulk jets and a revamped interna-
retailers’ supply chains often little patience for delays. There is little evidence, vice president of product man- shipments to a limited net- tional gateway could go some
rely on a hodgepodge of old “The customer that we have however, that brick-and-mor- agement at Geodis SA’s OHL, a work of stores so that workers way in demonstrating to ev-
and new back-office systems. is looking for instant gratifica- tar retailers have found a way third-party logistics firm that Please see RETAIL page B4 Please see IRAN page B2
Plan Would Mattel Reshapes Barbie to Reflect Diversity

Force Pay BY PAUL ZIOBRO $904.2 million, down 14% from the
previous four quarters. Mattel’s total
gest-tenured board member, Chris Sin-
clair, who has overhauled Mattel’s
the doll’s shape has remained largely the
same.
Disclosures More than 50 years after her debut,

Mattel Inc.’s Barbie doll will be getting
three new body sizes—curvy, petite
sales fell 6.2% in that same period.
Barbie’s sales have decreased at
more than 10% in each of the last eight
management team and tried to refo-
cus the company on making bet-
ter toys.
More recent complaints have fo-
cused on a lack of diversity in the
line, especially now that nonwhite
By Gender and tall—to try to stem a long swoon

in sales of the iconic toy.
The changes coming later this
quarters, as the toy lost shelf space to
dolls from Walt Disney Co.’s Frozen
property, which Mattel produced
Barbie has been a lightning
rod for criticism since Mattel
co-founder Ruth Handler intro-
Hispanic children make up a ma-
jority of the U.S. child population,
according to the Census Bureau.
BY LAUREN WEBER year are the latest attempt to ad- up until this year, and even to duced her creation at the 1959 “My whole philosophy of Barbie
AND JANET ADAMY dress concerns that Barbie’s tra- some off-brand dolls that retail- Toy Fair in New York. Women’s was that through the doll, the lit-
ditional tall, slim and blonde ers would rather stock. groups complained that the tle girl could be anything she
WASHINGTON—The Obama look is out of touch with chil- The slump by Barbie and blonde, plastic doll conveyed an wanted to be. Barbie always
administration plans to re- dren and the type of doll that some of Mattel’s other large unrealistic body image to girls. represented the fact that a
quire large employers to peel girls want to play with. brands, such as Fisher- Mattel expanded the toy line woman has choices,” Ms. Han-
back the curtain on how much “We believe we have a re- Price, cost Mattel’s then- during the decades, introducing an dler wrote in her 1994 autobi-
they pay men and women in a sponsibility to girls and par- chief executive, Bryan African-American doll in 1967 ography. Ms. Handler, who
push to narrow long-standing ents to reflect a broader view Stockton, his job last and giving Barbie dozens of oc- helped run Mattel for three de-
earning gaps between the gen- of beauty,” Evelyn Mazzocco, year. He has been re- cupations, including art cades until 1975, died in 2002.
ders. a Mattel senior vice president placed by Mattel’s lon- teacher and veterinarian. But The new Barbie doll lineup is
The Equal Employment Op- and head of the Barbie brand, much more reflective of the
portunity Commission will roll said in a statement. The girls who play with them and
out details of the plan Friday news was earlier reported the communities they belong
to begin gathering a summary by Time magazine.
Out of Fashion to, said Pia Guerrero, who
of pay data from employers Last year, Mattel Introduced Change from a year earlier in global sales for Barbie founded an advocacy group
5%
with 100 or more workers. more skin tones, facial structures called Adios Barbie in the late
The data will be used to iden- and hairstyles to its Fashionistas 0 1990s to promote a broader rep-
tify employers that may be en- collection, the most diverse lineup –5 resentation of woman’s body
gaging in pay discrimination so that Mattel had given to Barbie images in popular culture.
–10
that the agency can target its en- since she was introduced in 1959. “Our call hasn’t been to
forcement resources where prob- Mattel has sold more than a bil- –15 throw Barbie out the window,
lems may be likeliest to exist. lion Barbie dolls over the decades –20 but for her to be one body in
The proposal would cover more and it historically has been the com- Please see BARBIE page B6
than 63 million U.S. workers, ac- pany’s largest and most profitable –25
MATTEL (2)
cording to the White House. toy. But its sales recently have fallen 2013 ’14 ’15 Mattel is introducing three
The plan, which will be on hard times. In the last four quar- Source: the company THE WALL STREET JOURNAL. new body sizes for Barbie as
Please see PAY page B5 ters, Barbie’s global sales were the sales slump continues.
B2 | Friday, January 29, 2016 * *** THE WALL STREET JOURNAL.
INDEX TO BUSINESSES BUSINESS NEWS

These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
A
Abbott Laboratories ... C4
F
Facebook...........A2,B1,C4
N
NCR..............................C1 Iran Plays Catch-Up With Deals
For Satellites as Sanctions Ease
Affiliated Computer Finish Line .................. B1 Nissan Motor..............B5
Services .................... A1 Ford Motor..................B4 Nomura Securities......C3
Alibaba Group.............B3 G Northrop Grumman....B6
Alphabet......................B1 O-P
Gannett.......................A2
Amazon.com B1,B3,C4,C8
Gartner........................B3 Oshkosh.......................B6
American Airlines Group BY ANDY PASZTOR
General Electric...........C2 PHH.............................A2
............................... A6,C1
Anadarko Petroleum...C8
H R
Harley-Davidson ......... B4 Iran is taking preliminary
Apollo Global Raymond James.........A8
Management.............C2 Herrenknecht..............A7 Raytheon.....................B6
steps toward leasing or buying
Apple...........................B1 Hershey.......................B3 Reifenhäuser Group ... A7
commercial satellites and po-
Hilton Worldwide Royal Dutch Shell.......B4 tentially acquiring related
B
Holdings....................C2 technologies, according to in-
BG Group.....................B4 S
J dustry officials familiar with
Blackstone Group........C1 SMS group..................A7 the matter, another sign of
BMW ........................... B5 JDA Software ............. B4 Southwest Airlines.....C1
JD.com.........................B3 changes stemming from the
Boeing ......................... B2 Swift Transportation..A1
J.P. Morgan Chase.C1,C2 recent international rollback
BP...........................B4,C8 T of economic sanctions.
Bucyrus International.B5 K
Theranos......................B3 Providers of satellite ser-
C KKR..............................C2
Total.............................C8 vices and hardware on both
KLM.............................B2
Carlyle Group .............. C2 21st Century Fox........A5 sides of the Atlantic are ma-
L
Caterpillar ................... B5 U neuvering to land business in
Chesapeake Energy....A8 L-3 Communications Iran, even as Tehran has
UniCredit ..................... C3
Chevron..................B4,C8 Holdings....................B6
United Continental started recruiting Western ad-
Citibank ....................... C1 Lloyds Banking Group.C3
Lockheed Martin...A6,B6
Holdings...............A6,C1 visers to pave the way for
Credit Suisse..........C1,C3
V such deals, which could in-
M
CHARLES PLATIAU/REUTERS
D clude using satellites already
Valeant Pharmaceuticals
DELO ........................... A7 Macy's.........................B4 in orbit, according to some of
International.............C8
Manitowoc..................A2
Delta Air Lines.A6,B2,C1 Viacom ........................ A8 these officials. But agree-
Deutsche Bank.......C3,C8 Mattel..........................B1
Volkswagen.................B5 ments, they predicted, are at
McKinsey.....................C2
E Meituan-Dianping.......B3 W least weeks or months away.
eBay ............................ A2 Meraj Airlines.............B2 Walgreens Boots Some of the global satellite
Electronic Arts............B5 Merck...........................B5 Alliance.....................B3 industry’s biggest players are
Emirates Airline ......... B2 Microsoft................B3,C4 Wal-Mart Stores...B1,B4 actively involved, and the se- French President François Hollande, left, greeted Iranian President Hassan Rouhani in Paris on Thursday.
EOG Resources............C8 Mitsubishi Heavy Whiting Petroleum.....C8 cretive Iranian Space Agency
Exxon Mobil...........B4,C1 Industries ................. A6 Williams-Sonoma.......B4 already has made preliminary operation in the telecommuni- pean clients. As soon as Teh- about expanding offerings in
moves to get assistance from cation field. ran decides on a path, he adds, the region, according to one of
INDEX TO PEOPLE various legal and technical ex-

perts in the U.K., according to
one person involved in the dis-
Iran’s minister of communi-
cations and information tech-
nology, according to other Ira-
a number of satellite-services
companies “could put coverage
into Iran instantly.”
the industry officials familiar
with the matter.
Another official said two
A Hossein, Bagherian G.B1 Polzin, Michael ........... B3 cussions. nian news media, has talked in Tehran has built and British advisory outfits—in-
Allbritton, Robert.......B5 I R For now, these officials general terms about the French launched a number of fledg- cluding a London-based law
Angel, James .............. C2 Icahn, Carl...................A1 Rawlins, Roger............B4 said, European space compa- visit providing a “good oppor- ling domestic satellites, firm specializing in interna-
B Ronaghi, Iraj................B2 nies seem to have the inside tunity to promote cooperation though so far they have all tional trade—also are engaged
J
Rouhani, Hassan.........B2 track thanks in part due to in building national telecom- been relatively small and the in early discussions with the
Bowler, Bill..................C4 James, Hamilton “Tony”
S closer diplomatic ties and be- munication satellites” and pur- government was forced to turn agency about ways to boost
Buchanan, Brooke.......B3 ..................................... C1 cause the European Union’s re- suing other space goals. to Russia, China and India for Iran’s Internet and possibly
Burns, Ursula..............A2 Jooma, Imran..............B1 Schiller, Howard..........C8
maining sanctions against Iran Since the rollback of interna- design and launch of poten- video connections. Negotiations
C K Schork, Stephen..........C2
are less restrictive than those tional nuclear and other sanc- tially more-ambitious projects. for Iran to buy new satellites
Shein, Oded.................B4
Cryan, John ................. C3 Kameda, Seisaku ........ C3 enforced by the U.S. tions nearly two weeks ago, An Italian-built communica- are bound to be more complex
Sinclair, Chris..............B1
D L The current talks are largely Iran has moved quickly to com- tions satellite that was never and controversial, so they
Stuart, Jan..................C2
exploratory, according to indus- plete multibillion-dollar deals delivered because it was would take longer to nail down.
Dennis, Will.................C3 Lundgren, Terry...........B4 Suimon, Yoshiyuki......C3
try officials, with no major sat- for aircraft, cars, construction caught up in sanctions may be Yet initial steps have begun.
Dickson, Richard.........B6 M T ellite-related deals believed to projects and energy with Italian turned over to Tehran in com- A Washington-based partner
Donefer, Bernard.........C2 Mark Fields.................B4 Takada, Shigehisa.......B5 be imminent as Iranian Presi- and French companies. ing months, according to in- at Hogan Lovells, an interna-
F Mata, Angel ................ C4 Tangyue Yanglin..........C4 dent Hassan Rouhani visits Now, authorities in Tehran dustry officials. tional law firm with an exten-
Farley, Thomas............C2 Matsuo, Yutaka...........C3 Tsai, Joe......................B3 Paris this week. The heightened also appear ready to rev up But bigger and more expensive list of satellite and tele-
Mazzocco, Evelyn........B1 V level of activity, however, re- negotiations for potential sat- sive plans may be brewing. communications clients, said
G
Müller, Matthias.........B5 flects Iran’s long-standing inter- ellite pacts with U.S. and Euro- Paris-based Eutelsat Commu- “we are advising a wide range
Gassée, Jean-Louis.....B3 VandeHei, Jim.............B5
N est in gaining access to Western pean suppliers. nications SA, which operates a of companies about potential
Grant, John.................B2 W
Nadella, Satya ............ B3 commercial-space technology. “There are going to be some fleet of 39 satellites with con- provision of services and
Greifeld, Robert .......... C2 Wang, Cara..................B4
O Iran’s state news agency big contracts, and they’re go- siderable capacity for televi- equipment to Iran.” The part-
Guerrero, Pia...............B1 Whalen, Julie..............B4
has quoted Mr. Rouhani telling ing to come quickly,” said sion broadcasting and Internet ner, Stephen Propst, also
H Olin, John....................B4 Wolf, Andrew..............B3
French business leaders that Keith Volkert, a U.S.-based sat- connectivity over Iran and the stressed that at this point, U.S.
Harris, John ................ B5 P Y his country, among a long list ellite-industry consultant who Middle East, is talking with companies are lagging behind
Hauptman, David........B1 Parvaresh, Farhad.......B2 Yamamoto, Yuhki........C3 of issues, was interested in co- works for American and Euro- the country’s space agency rivals across the Atlantic.
IRAN record backlogs, so new planes

ordered today might not show
up until after 2020.
Another obstacle: Most air-
national agreement smooths
the process of repossessing
planes, in case of default.
Membership is typically a key Incredibly lightweight.
Continued from the prior page plane purchasing and finance component of any plane fi-
eryday Iranians the economic
benefits of Tehran’s nuclear
deal with international pow-
ers.
deals are in dollars. Executing
those deals amid U.S. banking
restrictions would be difficult,
especially for nonstate-owned
nancing or leasing agreement.
The European Union has im-
posed limits on Iran Air’s oper-
ations because of the age of its
Rock-solid footing.
“Developing the infrastruc- airlines. fleet, limiting the carrier’s op-
ture, building new airport fa- Deputy Transport Minister portunity to add more slots at
cilities, cargo villages, a rail- Asghar Fakhrieh Kashan told other global destinations. That
way line to the airport from an audience of international could put the airline at a dis-
the city, all will have direct aviation executives at a con- advantage compared with in-
and indirect impact on the ference here this week that ternational carriers, particu-
economy,” said John Grant, ex- Iran’s central bank is engaging larly those based elsewhere in
ecutive vice president at Brit- with the U.S. Treasury Depart- the Persian Gulf.
ish aviation consultancy OAG. ment’s Office of Foreign Assets Emirates Airline, the FREE
So far, the aviation industry
has appeared to be the single
Control, which enforces sanc-
tions, to address the issue.
world’s largest by interna-
tional traffic, already has
STANDARD
biggest beneficiary of the lift- “The banking sanctions plans to expand flights to Iran SHIPPING
ing of a set of broad interna- limit our growth vision,” said and link the country to the ON THIS ITEM*
tional sanctions against Teh- Iraj Ronaghi, vice president of Dubai-based carrier’s vast net-
Ends Feb. 4
ran. Meraj Airlines, an indepen- work. British Airways and
Iran Air is the first airline dent airline that operates do- Dutch carrier KLM are consid-
to benefit from sanctions re- mestic flights and some to ering reviving Tehran flights.
lief, agreeing to a deal with neighboring states. Direct flights to the U.S.
Airbus for 118 new jetliners. Airbus may provide financing aren’t likely soon. That would
The deal was announced for early deliveries in the Iran require a new bilateral treaty
Thursday during the current Air agreement until financial in- between the U.S. and Iran, and
visit of Iranian President Has- stitutions that typically back safety inspections by U.S. reg-
san Rouhani to Paris. such transactions re-establish ulators. All that could take
The order includes some of dealings with Iran, said Mr. Bré- time.
Airbus’s biggest planes—as gier. The financial exposure to Delta Air Lines Inc. said
many as 12 A380 superjumbos Airbus would be limited, he said. U.S. policy doesn’t allow it to
and 16 A350 long-range jets. Iran was suspended in 2011 operate directly to Iran,
Deliveries of some A320 single- from the global aviation-pay- though an airline spokes-
aisle planes and A330 wide- ment system run by the Inter- woman said the carrier will of-
bodies, which are part of the national Air Transport Associ- fer tickets for connecting pas-
transaction, are due to start ation. Iran Air Chairman sengers traveling to Tehran
this year, said Fabrice Brégier, Farhad Parvaresh said the air- with partner airlines.
the head of the European plane line is hoping to be readmit- An Iranian government offi-
maker’s jetliner unit. ted, a move that would make cial said the country likely
No one is expecting those international ticketing easier. would seek first to establish
planes to show up on the tar- Mr. Kashan, the deputy trans-Atlantic flights to Can-
mac right away. Airbus and ri- transport minister, said Tehran ada, while issues with the U.S.
val Boeing Co., whose planes also has started the process of are sorted out.
Tehran also is interested in joining the so-called Cape --Doug Cameron in Chicago
buying, are working through Town Convention. The multi- contributed to this article.
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Iran Air is the first airline to benefit from sanctions relief, agreeing to buy 118 new jets from Airbus.
THE WALL STREET JOURNAL. * * Friday, January 29, 2016 | B3
BUSINESS NEWS
Microsoft Gets Lift From Cloud Alibaba’s

Company shows
Results
growth in both its
cloud-computing and
Shrug Off
traditional businesses Downturn
BY CHELSEY DULANEY Alibaba Group Holding Ltd.
posted stronger-than-expected
Microsoft Corp. continued earnings in its latest quarter
an era of renewed vitality in despite a slowdown in China’s
the latest quarter, showing economy, highlighting the resil-
progress in newer cloud-com- ience of Chinese consumers.
puting services, as well estab-
lished business lines such as By Gillian Wong in
the Windows operating system. Beijing and Rick Carew
CASEY RODGERS/INVISION/ASSOCIATED PRESS
The company’s revenue and in Hong Kong

profit for the period ended in
December, though both de- The e-commerce giant also
clined, topped Wall Street ex- reached a roughly $900 mil-
pectations on an adjusted ba- lion deal to sell its stake in
sis that excludes deferred Meituan-Dianping, China’s
Windows revenue from its largest provider of food-deliv-
Windows 10 operating system. ery, movie-ticketing and other
The results sent its shares up on-demand services, according
3.8% in after-hours trading. to people familiar with the sit-
One continuing drag comes uation.
from smartphones, a business Despite robust results, Ali-
Microsoft retooled after it Attendees at the Electronic Entertainment Expo 2015 in Los Angeles get hands on with the ‘Fable Legends’ game at Microsoft’s Xbox booth. baba continues to face chal-
wrote down about 80% of its lenges. For example, it has to
disastrous $9.4 billion pur- grew 140%, the company said. sales of PCs have declined. gent Cloud—which commingles find ways to maintain and ac-
chase of Nokia Corp.’s handset Microsoft also is showing Room to Grow Gartner Inc. recently esti- the Azure cloud-computing ser- celerate growth in revenue and
business. Microsoft said phone strength in its traditional busi- Microsoft quarterly revenue, mated that PC shipments fell vice with data-center software the value of transactions made
revenue declined 49% in the ness of operating systems for in billions 8.3% in the fourth quarter. Ri- installed on customers’ comput- on its trading platforms when
second quarter, excluding cur- PCs, despite a declining hard- 2Q 2016* val International Data Corp. ers, as well as support and con- it is already the dominant
rency effects, an especially ware market. The company said $30 $23.8B put the drop at 10.6% and sulting—grew 11% excluding cur- competitor in China’s e-com-
poor showing after repeated its Windows 10 offering, intro- noted that total unit sales in rency effects, the company said. merce sector, with 80% of the
efforts to establish a foothold duced last summer, earlier this 25 2015 fell below 300 million for Revenue for Microsoft’s market. It also faces intensify-
in the phone market. month was running on 200 mil- the first time since 2008. productivity segment, which ing competition from smaller
Microsoft said it brought in lion computers—up from 100 20 But Amy Hood, Microsoft’s includes the cloud version of but more rapidly-growing e-
$1.3 billion in revenue in the sec- million for the period ended in chief financial officer, said Office and a conventional ver- commerce firms, in particular
ond fiscal quarter from its Sur- September, Microsoft said. 15 Thursday that revenue from sion, rose 5% on a constant- JD.com Inc., a longtime rival
face computing products. That is “Windows 10 is outpacing selling Windows to PC makers currency basis, Microsoft said. that has been slowly gaining
up 29% from the year-earlier pe- adoption of any of our previ- 10 only declined 5% in the period In all, Microsoft said its sec- ground in some areas.
riod, excluding negative effects ous operating systems,” said ended in December. A segment ond-quarter net income declined
from a stronger U.S. dollar. Satya Nadella, Microsoft’s 5 called “More Personal Comput- to $5 billion, or 62 cents a share,
The company also showed
further growth in cloud ser-
chief executive, during a con-
ference call with analysts. 0
ing,” which includes revenue
from Windows and the com-
down from $5.86 billion, or 71
cents a share, a year earlier. 32%
vices, a term that refers to sell- Daniel Ives, an analyst at FBR 2013 ’14 ’15 ’16 pany’s Surface tablet computer, Excluding the effect of reve- Rise in revenue to $5.3 billion,
ing access to software or raw Capital Markets, called demand Note: Microsoft deferred $1.9 billion decreased 2%, excluding cur- nue deferrals and restructur- helped in part by blockbuster
processing power running in for Windows 10 “eye-popping.” primarily related to Windows 10 and Halo 5. rency effects, the company said. ing charges, adjusted earnings sales during Singles’ Day.
Microsoft’s own data centers. Rather than booking revenue *Ended Dec. 31, 2015 Source: the company Microsoft said that its rose to 78 cents from 70 cents
It said all its cloud busi- from sales of its operating sys- THE WALL STREET JOURNAL. “commercial cloud” businesses a year earlier. Revenue, which
nesses are running at an an- tem up front, Microsoft records were running at an annual rev- fell 10% to $23.8 billion, on an Shares of Alibaba fell 3.8%
nual rate that is 70% higher it gradually, along with deferred basis rose 8%. Under generally enue rate of $9.4 billion as of adjusted base rose 3% exclud- to $66.92 on the New York
than the year-earlier period. revenue generated by the prod- accepted accounting princi- the second quarter, compared ing currency effects. Stock Exchange Thursday. Be-
Revenue from its Azure ser- uct. As a result, analysts and the ples, by contrast, its profit de- with $5.5 billion for the same Analysts polled by Thomson fore Thursday’s results, the
vice, which competes with company focus on adjusted fig- clined 15%. period in 2014. Reuters had expected adjusted stock had dropped more than
cloud-based infrastructure ser- ures for earnings and revenue. Microsoft, based in Red- Revenue for a relatively new per-share profit of 71 cents 30% over the past year amid
vices from Amazon.com Inc., Microsoft’s profit on that mond, Wash., has suffered as reporting segment called Intelli- and revenue of $25.26 billion. concerns about China’s econ-
omy, whose growth rate mod-
erated to 6.9% last year—the
Walgreens Suspends Some Ties to Theranos

weakest annual pace in a quar-
ter century.
But Alibaba said Thursday
that its net profit for the three
Theranos Inc.’s main retail comment on its Theranos Theranos Wellness Centers ha- Walgreens said it wasn’t in- could reasonably have been months ended in December
partner is suspending some plans beyond a previous state- ven’t generated revenue for it, formed of the alleged incident. caused by variations between more than doubled from a year
ties to the blood-testing comment that Walgreens is “cur- people familiar with the mat- Theranos has said it doesn’t blood-analysis machines. Mr. earlier to 12.5 billion yuan
pany in the wake of a critical rently in discussions about the ter said. believe that incident happened Gassée says he is unconvinced, ($1.9 billion), including a gain
regulatory inspection report. next phase of our relation- “They’re going to continue and, in a statement about calling the executives’ presen- from the sale of the company’s
ship.” to protect the reputation of CMS’s inspection on Wednes- tation “a snow job.” movie-related businesses. Ex-
By Michael Siconolfi, Theranos spokeswoman Walgreens, and they’re not go- day, noted the agency issued Theranos didn’t respond to cluding that gain, the company
John Carreyrou Brooke Buchanan said: “We ing to be associated with a no findings on the former em- requests for comment. said its profit rose 25%,
and Christopher Weaver look forward to continuing to laboratory that has potentially ployee’s allegations. As reported, Walgreens in boosted by improvements in
work with Walgreens to pro- bad ramifications for pa- October suspended plans to its ability to increase the
Walgreen Co. said it is tem- vide access to reliable, high- tients,” said Andrew Wolf, a roll out more Wellness Cen- amount of money it earns from
porarily closing its Theranos quality, and low-cost lab test- senior analyst covering Wal- ters after the Journal pub- each transaction.
Wellness Center in Palo Alto, ing services.” greens for BB&T Capital Mar- lished articles noting that the Revenue rose 32% to $5.3
Calif., after federal inspectors Referring to the CMS in- kets. Mr. Wolf said he and proprietary lab instrument de- billion, helped in part by
found “deficient practices” at spection report, she added: other analysts hadn’t included veloped by Theranos as the blockbuster sales during Sin-
KEITH SRAKOCIC/ASSOCIATED PRESS
Theranos’s Newark, Calif., lab “Our CLIA-certified Arizona any revenue from the Thera- anchor of its growth strategy gles’ Day, China’s online shop-
that “pose immediate jeop- lab, which handles 90% of our nos partnership in projections handled just a fraction of the ping festival in November. Ali-
ardy to patient health and wellness center lab tests, is for Walgreens’ earnings. tests sold to customers at the baba said sales that day
safety.” not impacted by this week’s The Theranos Wellness end of 2014, and that the com- increased 54% from a year ear-
The Walgreens Boots Alli- findings.” Center in Walgreen’s Palo Alto pany has stopped collecting lier, better than what many an-
ance Inc. unit, the nation’s “Those findings relate pharmacy was mentioned in a tiny vials of blood drawn from alysts had expected.
largest drugstore chain, also solely to certain aspects of a complaint filed by a former finger pricks for all but one of Executive Vice Chairman
said patients’ blood samples different lab—our Newark, Theranos employee last fall its more than 240 tests. Joe Tsai said on a conference
from its pharmacies wouldn’t [Calif.] lab—and do not reflect with the Centers for Medicare In recent weeks, Walgreens call that Alibaba was well-po-
for now be sent to Theranos’s the current state of the lab,” and Medicaid Services. CMS has debated whether to close sitioned to benefit from
Newark lab. Theranos oper- Ms. Buchanan said Thursday. regulates U.S. laboratories.
The drugstore pact the 41 Theranos centers amid China’s shift from an invest-
ates Wellness Centers at 41 “This is an issue that many In the complaint, the for- has been an what it found to be unsatisfac- ment-driven and manufactur-
Walgreens pharmacies, one in other labs have faced, and we mer Theranos employee de- tory answers from Theranos, ing-heavy economy to one that
Palo Alto, where Theranos is will fix it quickly and com- scribed an alleged incident in
important one for the according to people familiar is fueled by consumption and
based, and the rest in Arizona. pletely, working with our reg- November 2013 in which a col- blood-testing firm. with the matter. services.
Walgreens briefed its direc- ulators as we always do.” league from the research-and- On Wednesday, CMS said “Consumption as a share of
tors on action against Thera- The drugstore tie-up is im- development department alan inspection completed in [gross domestic product] is
nos at a regularly scheduled portant for Theranos. The legedly entered the lab, which In a blog post in October, November uncovered five ma- becoming higher, so we benefit
board meeting this week. In a long-term deal, announced was then located in Palo Alto, former Apple Inc. executive jor infractions at Theranos’s from that,” Mr. Tsai said. He
statement Thursday, Wal- with fanfare in late 2013, envi- and deleted quality-control Jean-Louis Gassée described Newark lab that violate fed- said the massive shift of users
greens said it “informed Ther- sioned opening Theranos data to make test runs on a discrepancies between test re- eral law governing clinical accessing the Internet on mo-
anos that tests collected at 40 Wellness Centers around the Theranos device look better. sults he got from Theranos af- labs. bile devices continues to help
Theranos Wellness Centers lo- nation in many of Walgreens’ The R&D colleague then alter having his blood drawn at The agency defined one in- boost the use of e-commerce.
cated at stores in Arizona nearly 8,200 stores. This part- legedly tested a blood sample the Palo Alto Walgreens and fraction by the blood-testing “Underlying our business is a
must be sent only to Thera- nership is Theranos’s main collected from a patient at the results he got from Stanford company as a situation “likely very significant secular trend,
nos’ certified lab in the Phoe- conduit to consumers, provid- Palo Alto Walgreens on the Hospital. to cause, at any time, serious and that is really decoupling
nix area or to an accredited ing the bulk of its sales to the faulty device and sent out a Mr. Gassée says two Thera- injury or harm, or death, to from the larger economy.”
third-party lab for analysis.” public. result to the patient. A copy of nos executives met with him individuals served by the labo- Many analysts have said the
Walgreens spokesman Mi- For Walgreens, the rela- the complaint was reviewed after he made the matter pub- ratory or to the health and selloff in Alibaba’s shares was
chael Polzin said he wouldn’t tionship is sensitive. The by the Journal. lic, and said the discrepancies safety of the general public.” unjustified because China’s on-
line-retail sector remains a
rare bright spot in the slowing
Hershey Hits a Bitter Patch as Tastes Change and Overseas Markets Sour economy and that overall con-
sumption remains solid. No-
Hershey Co. posted a 5% sales in China tumbled 34% be- mura Securities analysts ex-
decline in quarterly revenue fore factoring in currencies. pect China’s overall online
and said its sales growth is Hershey has made a big bet shopping market to grow at a
slowing as Americans’ shop- on China since acquiring a Chi- 33% compound annual rate be-
ping habits change and inter- nese candy maker about two tween last year and 2017.
national markets like China re- years ago. The Pennsylvania Still, Alibaba faces intensi-
main volatile. chocolate company expected fying competition in the race
The maker of Reese’s pea- Shanghai Golden Monkey to be to provide China’s smartphone
nut-butter cups and its name- its ticket to a rapidly growing users with offline services
sake Kisses on Thursday re- market, providing insight into the such as dining reservations,
ported a fourth-quarter profit flavors and tastes that Chinese takeout delivery and movie-
of $213.4 million, up 5.4% from consumers prefer. But shortly af- ticket bookings.
the prior year. ter the acquisition, China was hit Asked on the conference
But Hershey’s sales in North with economic turmoil dented call about Alibaba’s plans to
TIMOTHY FADEK/BLOOMBERG NEWS
America, where it gets the vast that discretionary spending. sell its stake in Meituan-Dian-
majority of its revenue, were More recently, competition ping, Mr. Tsai said Alibaba’s
essentially flat at $1.63 billion. heated up in its home turf as own online-to-offline business,
Sales in international markets Hershey felt the squeeze of called Koubei, is doing well.
fell 27% to $281.5 million, shoppers making fewer trips to “We believe a better alloca-
partly because the strong U.S. the store and trading chocolate tion of our capital is to put our
dollar contributed to unfavor- bars for granola bars amid a resources into Koubei and exit-
able currency-exchange rates, shift toward healthier eating. ing Meituan is just a matter of
but mostly because chocolate —Annie Gasparro time,” he said.
B4 | Friday, January 29, 2016 * * THE WALL STREET JOURNAL.
BUSINESS NEWS
Oil Slump Sets Scene for Mergers Harley Net

Falls; Glut
With shale producers
Crash Takes Big Toll
losing over $2 billion a
week, some may have
The biggest U.S. and European oil
companies' profits in 2015 are
Dims View
to find a buyer in 2016 expected to be lowest since 1998.
Oil companies' net income* For 2016
BY BRADLEY OLSON $150 billion BY JAMES R. HAGERTY
2015 estimate
AND SARAH KENT $22B
As competition intensifies,
Here’s how bad things are 100 Harley-Davidson Inc. has
getting in the oil patch: In vowed repeatedly to avoid dis-
some cases it is now cheaper counting, saying it wants to
for energy companies to buy protect its premium brand im-
one another rather than drill 50 age. But Harley executives said
for crude. in a call with analysts Thurs-
A year-and-a-half on from day morning that some deal-
the start of the worst crude- 0 ers are offering motorcycles
oil-price crash in a generation, 1991 2000 2010
below the company’s recom-
the biggest U.S. and European mended price levels.
*Includes Exxon, BP, Royal Dutch Shell
energy companies have de- and Chevron The Milwaukee-based com-
layed projects and made such Source: S&P Capital IQ pany reported a 43% decline in
deep budget cuts that they will THE WALL STREET JOURNAL. fourth-quarter profit and
soon struggle to replace the oil trimmed its forecast for 2016
they pump out of the ground more debt and equity. Just as shipments as demand re-
with new reserves. That co- potential sellers were reluctant mained sluggish and costs
nundrum could have serious to accept offers they consid- rose for marketing, product
implications for Exxon Mobil ered too low as they hoped for development and restructur-
SPENCER PLATT/GETTY IMAGES

Corp., BP PLC, Chevron Corp. a rebound in oil prices, many ing. The strong dollar has
and Royal Dutch Shell PLC be- potential buyers were also put made imports from Japan and
cause oil-and-gas reserves are off by the extreme volatility in Europe cheaper, eroding Har-
critical to evaluating their oil prices and wondered if any ley’s still-dominant share of
growth prospects. deal struck would look expen- the U.S. market for heavy-
Exxon and its peers are set sive if crude fell ever further. weight motorcycles. Dealers
to begin reporting fourth- Both impediments are gone, also have had large supplies of
quarter earnings this week, now that hopes for a quick re- used bikes to sell, suppressing
starting with Chevron on Fri- An oil well operated by Apache in Texas. The company fended off an overture by Anadarko last fall. bound have been dashed. demand for new models.
day. Analysts estimate com- At current prices, U.S. shale Asked about discounting by
bined profits at the four big- to go out and buy something,” “If prices stay this low, by a big energy company so producers are losing more Harley dealers, John Olin,
gest publicly traded Western he said. “The valuations are we’re going to see much more far is Shell’s $50 billion pur- than $2 billion a week, accord- chief financial officer, said:
oil companies will be about getting quite attractive.” distressed companies and that chase of BG Group PLC, which ing to consulting firm Alix- “Our dealers are independent
$22 billion, the weakest results Past energy downturns will drive M&A,” said Luke Shell and BG shareholders ap- Partners LLP. That means as folks, and they can offer dis-
since 1998, according to S&P drove many of the biggest oil Parker, research director at proved this week and is ex- oil’s crash grinds on, some counts, and some of them do.”
Capital IQ. Shell, Chevron, companies to strike deals, with Wood Mackenzie. pected to close in February. shale companies may be forced He added, however, that Har-
Exxon and BP declined to com- big companies buying smaller Bankers and analysts have Many U.S. oil producers that to fall into the arms of a will- ley forbids dealers from adver-
ment. rivals such as Anadarko Petro- been predicting a wave of tap shale formations have ing buyer this year. tising discounts. Meanwhile,
Facing poor returns for leum Corp.’s takeover of Union deals almost since crude prices fought for a year to avoid a Oil-patch deals now look through email blasts and other
drilling and severe challenges Pacific Resources in 2000. began to fall from over $100 a sale, including Apache Corp.— more attractive than they have promotions, Harley has been
to long-term growth, some big Equally matched energy con- barrel in the summer of 2014, which fended off an overture in years, said Robin Bertram, offering special terms on fi-
oil companies have little glomerates also lashed them- but they never materialized. by Anadarko last fall—and the oil-and-gas resource evalu- nancing and extended-service
choice but to turn to deals, selves together the last time Last year was the slowest year Whiting Petroleum Corp., once ation leader at Deloitte LLP. packages to lure customers.
said Anish Kapadia, an energy oil traded around $20 a barrel for oil-and-gas transactions in the biggest producer in North That is especially true for Prices at auctions of used
analyst at Tudor Pickering in the late 1990s, including over a decade, according to Dakota’s Bakken Shale, which some of the biggest oil compa- motorcycles have been soft
Holt & Co. Exxon’s tie-up with Mobil and Wood Mackenzie. entertained offers last year be- nies, which sat on the sidelines over the past several quarters,
“The obvious conclusion is Chevron’s with Texaco. The only sizable acquisition fore turning to Wall Street for during the U.S. shale boom. Mr. Olin said.
Harley forecast that its
global motorcycle shipments
Ford’s Margin Outlook Undercuts Strong Year

to dealers would increase 1% to
3% this year after a decline of
1.6% in 2015. In October, Harley
told analysts that shipments
BY CHRISTINA ROGERS ket, which reached a record Ford’s continued growth pros- were likely to rise 3% to 5% in
AND GAUTHAM NAGESH 17.5 million sales in 2015, has pects, Mr. Shanks said eco- 2016. Mr. Olin said the forecast
peaked after six years of unin- nomic shifts and stock market was cut because of deteriorat-
Ford Motor Co. swung to a terrupted growth. volatility could make for ing economic conditions.
$1.9 billion fourth quarter net “Investors have made up bumps along the way.
profit, capping a record year their minds for this cycle…we Although sales are booming
for operating results at the na- don’t find many institutions in Europe, the company posted
Harley dealers hurt
tion’s No. 2 auto maker and who have driven a Ford lately,” a 1% operating margin for the by weaker demand,
prompting its executives to Mr. Johnson said. year. Brazil and Russia, two
forecast a repeat or improved Ford’s 8.2% North American key markets for Ford, are
glut of used bikes,
performance this year. operating margin in the fourth mired in sales slumps. Ford turn to discounting.
But investor concerns about quarter—sharply lower than lost $295 million in South
profitability in the company’s more than 12% margins re- America in the fourth quarter
core U.S. market plateauing ported in the second and third and $832 million during the Harley, struggling to main-
this year sent its shares to quarter—missed analysts’ ex- year, nearly offsetting the $1 tain momentum as its baby-
their lowest point in more than pectations. Still, Ford Chief Fi- billion combined in Europe boomer customers age, hopes
three years during the day. The nancial Officer Bob Shanks and Asia last year. to boost sales to younger rid-
stock retraced some of its drop forecast equal or better oper- Ford’s pretax profit for 2015 ers through new products, in-
and finished down 1% at $11.71, ating profit in 2016, but said equaled a record $10.8 billion, a cluding two new high-powered
the lowest closing price since North American profits are al- 48% increase from the prior versions of its Low Rider and
PAUL SANCYA/ASSOCIATED PRESS
Mark Fields took over as chief ready at “benchmark levels.” year partially due to a move to Breakout motorcycles intro-
executive 18 months ago. Ford, which is looking to mark-to-market accounting, duced this week. The company
Ford’s fourth-quarter oper- boost output, has benefited which changes the way pension also is offering free rider train-
ating profit of 58 cents a from low gasoline prices, losses and gains are recognized. ing to military personnel, vet-
share, compared with 28 cents which primed demand for Almost all of that profit erans, police and firefighters.
a share a year earlier, out- sport utilities, and the com- was generated by Ford’s North Harley’s share of the U.S.
paced analyst expectations. pany’s highly profitable F-150 America operations, which market for motorcycles with
And the company reported a pickup truck. The auto maker posted a $2 billion profit in engines of 601 cubic centime-
$259 million annual profit in is preparing to offer a new Ford said launch cost for new trucks will weigh on 2016 margins. the final three months of the ters or greater for 2015 as a
Europe, its first in four years aluminum version of its “Su- year and a $9.3 billion profit whole slipped to 50.2% from
due to restructuring efforts, per Duty” F-Series this year, Three’s U.S. sales are the more “This isn’t just a North Ameri- for the full year. 53.3% in 2014.
improved market conditions but said launch costs will profitable light trucks, com- can story,” he said. “We really Revenue for its fourth quar- Harley reported net income
and accounting changes. Its weigh on profit margins. pared with less than 50% light started to see international ter rose 12% to $40.3 billion, of $42.2 million, or 22 cents a
Asia business is showing life AutoNation Inc. Chief Exec- trucks for the Japanese auto markets come forward and as sales increased in three of share, down from $74.5 mil-
after years of sluggish results utive Mike Jackson said do- makers. “The domestics are in that is a big opportunity.” the company’s five global re- lion, or 35 cents a share, a
as well, booking a $765 million mestic car makers, including a fantastic position…they are Global demand, however, gions. Ford will pay out a re- year earlier. Revenue, includ-
annual operating profit amid Ford, should do well this year going to move heaven and hasn't been as bright as North cord $9,300 per worker in ing financial services, slipped
momentum in China. even if overall sales flatten. earth to build more trucks.” America lately. Growth slowed profit-sharing bonuses in 1.6% to $1.18 billion. Analysts
Brian Johnson, a Barclays “America’s gone truck Mr. Shanks, however, last year in China, the world’s March to factory employees polled by Thomson Reuters
auto analyst, said investors crazy,” he said, noting more sought to broaden the view on largest light-vehicle market, represented by the United had expected earnings of 19
believe the U.S. new-car mar- than 70% of the Detroit Ford beyond its home turf. and although optimistic about Auto Workers union. cents a share.
AMAZON main the choice for instant-

shopping gratification.
Amazon is rolling out one-
hour and same-day delivery in
RETAIL ment stores, and later place an
order for it online.
This creates “a complication
for us in making sure that we
because of “higher costs for dis-
tribution and our strategic in-
vestment in omnichannel,” said
Chief Financial Officer Oded
For many companies, com-
peting both online and at the
mall can mean trading fat profit
margins for more customers—at
Continued from page B1 a growing number of cities, Continued from page B1 understand just how many Shein, on the company’s most least for now. Fashion retailer
months announced new AWS not to mention plans for 30- can quickly assemble, package stores we need, [and] how far recent earnings call. Stage DSW Inc. has given shoppers
data centers in Ohio, China, minute delivery by drone, and ship many small parcels to will the customer drive to try on Stores is in the process of clos- the option of placing online or-
the U.K., South Korea, Canada projects that may take years consumers in far-flung loca- this product once they have dis- ing 90 of 850 stores. ders for out-of-stock items
and India, highlighting the to show a profit. tions. Installing a new ware- covered it on their mobile de- To manage costs, many re- without leaving its stores. And,
global ambition of the division As a result, expenses con- house-management system vice or their tablet device,” said tailers are betting on new soft- the chain is both fulfilling online
and its widening lead on rivals tinue to rise. The company’s like the one Finish Line started Macy’s Chief Executive Terry ware that helps them decide orders and accepting returns at
Microsoft Corp. and Alphabet. operating costs climbed 20.5% using last fall can cost hun- Lundgren, on the retailer’s lat- which warehouse or distribu- its growing number of locations.
The company said nearly to $34.6 billion from $28.7 bil- dreds of thousands of dollars, est earnings call. tion center can ship a particular The company is betting those
half of the units of merchan- lion a year earlier. experts say. The added expense of e-com- customer’s order most economi- efforts will pay off by increasing
dise it sold in the quarter In the quarter, shipping Increasingly, chains also offer merce is a bigger burden for cally. Many variables factor into customer loyalty even though
came from third-party sellers costs jumped 37% to $4.17 bil- in-store pickup and free returns. traditional retailers, whose those calculations, such as labor they aren’t adding to profits in
who store their goods in Ama- lion. As a percentage of sales, The further down this road a re- stores saddle them with higher costs, distance, and the strength the near term, said Roger Rawl-
zon warehouses. That is good shipping costs rose to 12.5% tailer goes, the more its supply fixed costs than online-only sell- of local supply and demand. ins, who oversaw DSW’s om-
news for Amazon because from 10.9% in the year-earlier chain begins to resemble a spi- ers, industry experts say. A new Retailers like Wal-Mart nichannel strategy before re-
most observers assume such period, suggesting the com- der web, said Cara Wang, a civil- survey of retailers by JDA Soft- Stores Inc. and Amazon also cently becoming CEO. He said
sales are generally more prof- pany relied more heavily on engineering professor at Rens- ware Inc., said 68% of the re- have invested millions to de- customers who buy DSW prod-
itable than the merchandise it pricey third-party couriers to selaer Polytechnic Institute. spondents report rising costs velop specialized software, ro- ucts through multiple channels
purchases itself for resale. help dispatch goods during That offers more convenience for fulfilling orders. The highest botics, and other high-tech ap- spend two or three times as
Chief Financial Officer the holidays, Mr. Mahaney for the customer, but raises costs were for e-commerce ship- proaches to tracking inventory. much as those who shop exclu-
Brian Olsavsky declined in a said. technology and labor costs for ping and returns and shipping Williams-Sonoma Inc.’s sively in its stores or online
call with reporters to discuss “We’ve found we needed to the retailer. online orders to stores for technology investments include only.
margin on third-party goods, serve our customers at peak; It can be tough, however, to pickup. More than half said “inventory tools that will allow The strategy “ultimately al-
but said such sellers help bulk we needed more of our own determine how much online or their biggest pressures come us to better forecast our inven- lows you to grab additional
up Amazon’s overall inventory. logistics to supplement part- in-store operations affect over- from price, and offers of same- tory flow and space capacity re- market share, and then as we
Shipping is one of Amazon’s ners,” said Mr. Olsavsky in a all sales. Macy’s Inc., which cut day and next-day delivery by quirements by [distribution learn through using all these ca-
biggest weapons but also its call with analysts. “Those car- thousands of jobs after disap- Amazon. center], brand and channel,” pabilities, we hopefully should
crux as Amazon asserts itself riers are just no longer able to pointing holiday sales, says Stage Stores Inc., a regional said Julie Whalen, the cookware be tweaking to be able to gener-
over brick-and-mortar rivals handle all of our capacity that many shoppers check out mer- apparel retailer based in Texas, chain’s CFO, on an earnings call ate incremental profitability,”
that in most of the country re- we need at peak.” chandise in one of its depart- is struggling with lower profits in November. Mr. Rawlins said.
THE WALL STREET JOURNAL. * * * * Friday, January 29, 2016 | B5
BUSINESS NEWS
Takata Chief to Resign Caterpillar Expects

Sales to Keep Falling
Air-bag maker’s CEO
BY BOB TITA surging demand for construc-
is expected to discuss tion machinery. But both bets
financial support with Caterpillar Inc. warned its struggled as commodity prices
revenue this year could sink to fell and emerging economies
auto makers on Friday a six-year low on falling de- contracted.
mand but held out hope for Caterpillar Chief Executive
BY YOKO KUBOTA better earnings as the heavy Doug Oberhelman said he’s
AND ATSUKO FUKASE equipment maker swung to a not expecting a recovery in
fourth-quarter loss on restruc- commodity or oil prices in
TOKYO—Takata Corp.’s turing expenses. 2016 or much economic expan-
chief executive has said he in- The mining and construc- sion in developing countries,
tends to resign, according to a tion equipment supplier said such as Brazil and Russia.
person familiar with the mat- depressed prices for iron ore, “I would expect bumps in
ter, in hopes that auto makers copper and other commodi- the road all through the year,”
would offer aid to the manu- ties, cheaper oil and weakness he said on a conference call
facturer of tens of millions of in developing countries are with analysts. “We’re really
recalled air bags. weighing on sales of its bull- going into [2016] with eyes
Shigehisa Takada, the CEO dozers, excavators, mining wide open.”
of Takata and the grandson of trucks and engines. Profit for 2015 dropped 43%
the air-bag maker’s founder, is The Peoria, Ill.-based com- from a year earlier to $2.1 bil-
expected meet with auto mak- pany now expects 2016 reve- lion on revenue down 15%, to
ers on Friday, when the com- nue of about $42 billion, more $47 billion.
pany will discuss its financial than a third below the com-
conditions and business plans, pany’s $65.9 billion four years
KAZUHIRO NOGI/AGENCE FRANCE-PRESSE/GETTY IMAGES
another person briefed about ago. The projected 10% decline

Troubles to continue
the matter said. is twice what it had forecast in mining, oil-field
Takata likely will need some for the year in October and
kind of financial support from would leave revenue at below
and construction
auto makers and lenders to what it had before its acquisi- equipment markets.
stay afloat, such as a capital tion of mining equipment
increase, securing loans or company Bucyrus Interna-
having auto makers pay for tional Inc. in 2011. Fourth-quarter revenue
much of the costs to fix its air- Caterpillar forecast 2016 tumbled 23% below the same
bag inflaters, people involved earnings of $4 a share, exclud- period a year earlier to $11.03
in the recall process said. ing additional restructuring billion as equipment and en-
“A precondition for any sup- costs and including the benefit gine sales declined in all of the
port is Mr. Takada’s intention to of lower pension costs, up company’s geographic mar-
resign,” one of the people said. from $3.50 a share in adjusted kets.
Executives from customers Takata CEO Shigehisa Takada said he intends to step down to address concerns over air bag recalls. earnings in 2015. Analysts Analysts had forecast $11.4
including Honda Motor Co., were expecting $3.48 a share billion in revenue. Restructur-
Toyota Motor Corp., Nissan Takada, 49 years old, has han- isn’t at immediate risk of run- flected in Takata’s current fi- excluding charges. Its pension ing costs pushed Caterpillar to
Motor Co., BMW AG and dled the problem of Takata air- ning out of cash. nancial statements. Moreover, costs this year are expected to a loss of $87 million, or 15
Volkswagen AG are among bag inflaters that could ex- But its financial condition Takata could face further costs fall on a change in accounting cents a share, for the quarter
those expected to attend Fri- plode, people involved in the doesn’t fully reflect the full through class-action lawsuits practices, a move that pro- compared with a prior-year
day’s meeting, the person said. recalls have said. The com- scale of recall-related costs and penalties from authorities. vided most of the higher per- profit of $757 million, or $1.23
Takata declined to comment pany’s governance and trans- Takata may have to bear in the Mr. Takada became the share profit in the company’s a share. Excluding 89-cents-a-
on the matter. parency are among the prob- future. president of the company, forecast. share in restructuring costs,
Auto makers have recalled lems, they added. Currently, auto makers in- which also makes seat belts The better-than-expected the company reported earn-
some 60 million vehicles But it is unclear when he volved in the recalls have been and child seats, in 2007, when profit view helped lift the ings of 74 cents a share, top-
world-wide with Takata-made would step down or who shouldering much of these his father, Juichiro, was still company’s shares. Caterpillar ping analysts’ forecast of 69
air-bag inflaters that could ex- would take over as chief of the costs. Once the root cause of chairman. Mr. Takada later gained 4.7% to $61.08 a share cents a share.
plode, a problem linked with troubled company if he does why some of these air bags are took over as chairman and on Thursday. Caterpillar, which is already
10 deaths, Japan’s transport resign, they said. The parties prone to exploding is identi- CEO. His father died in 2011. The Bucyrus acquisition— planning to cut 10,000 jobs in
ministry has said. Analysts involved in recalls haven’t fied, then auto makers and In June, when Mr. Takada the largest in the 90-year-old the coming years, said it
have estimated that costs to agreed on how to resolve Takata will discuss how to was asked in a news confer- company’s history—repre- would book $400 million in
replace those air bag inflaters Takata’s financial woes, one split the costs, they have said. ence whether he would resign, sented a doubling down on charges for restructuring op-
in these cars could reach bil- person said. Probes are ongoing to find the he said that he wanted to do global demand for minerals. At erations in 2016 to lower ex-
lions of dollars. Takata reported ¥61.7 bil- root cause. his job to resolve the recalls. the same time, Caterpillar ag- penses after spending $908
Many auto makers have lion ($519 million) in cash and That means much of the re- Takata is set to release its gressively added plants in million on restructuring in
been frustrated at the way Mr. equivalents as of Sept. 30, and call-related costs aren’t re- third-quarter results on Feb. 5. overseas markets to capture 2015.
PAY lower-paying jobs. But econo-

mists say that still doesn’t ac-
count for the entire gap.
The EEOC currently collects
to get too many false positives
and too many false negatives.”
In a 2012 report commis-
sioned by the EEOC to study the
VW Begins European Car Recalls
BY WILLIAM BOSTON Volkswagen to fix the vehicles keep us busy all year.”
Continued from page B1 demographic information an- feasibility of collecting pay data, to make them compliant with While Volkswagen is begin-
open to public comment but nually about companies’ work- independent experts found that BERLIN—Volkswagen AG existing emissions regulations. ning to fix vehicles in Europe,
won’t require legislative ap- forces, including data on the the agency at that time didn't began recalling millions of The company also faces bil- talks are continuing with the
proval, is part of a broad effort race and gender of employees. have the expertise it needed to diesel-powered vehicles in Eu- lions of dollars in potential Environmental Protection
undertaken by President Ba- EEOC Chair Jenny Yang said analyze the information it hoped rope this week, but seems no fines and consumer litigation. Agency and the California Air
rack Obama and federal agen- she expects the administrative to gather from employers. closer to a deal with U.S. envi- Germany’s federal motor Resources Board, or CARB, over
cies to close a persistent wage burden of gathering compensa- Ms. Yang said Thursday that ronmental officials over how vehicle agency, or KBA, must the recall of nearly 600,000 ve-
gap between men and women. tion data to be relatively light, the EEOC has been working to to fix affected cars owned by separately approve the fix for hicles in the U.S. Volkswagen
Soon after taking office, he since employers will essen- increase its capacity. She also American consumers. each model affected. Once the says the repair of vehicles in
convened a national task force tially be adding a few columns said the agency is joining with Kicking off one of the largest KBA gives approval, a fix ap- the U.S. is more complicated
to address the issue, request- to the report they already file. the Department of Labor to ac- product recalls ever, which will plies to vehicles across the Eu- than fixing the same models in
ing greater coordination Statisticians and economists complish the aims of the pro- encompass nearly 11 million ropean Union, not just in Ger- Europe because of different de-
among agencies and more ag- note, however, that analyzing gram. diesel-powered vehicles world- many. The KBA approved the signs specific to each market.
gressive enforcement efforts. wage disparities is a complex “One of the benefits of us wide, the German car maker Amarok recall on Wednesday The German auto maker has
Despite those efforts, across undertaking, and that aggregat- partnering with DOL in this ef- began asking European owners and is expected to give the presented plans for installing
all professions, women earn ing data about many occupa- fort is we can join our capacity of its Amarok light pickup green light for the two-liter a new catalytic converter in
about 79 cents for every dollar tions is especially tricky. together in analyzing some of trucks to bring their vehicles to Passat as soon as next week. some U.S. diesel models, Chief
earned by men—only 2 cents “You can’t compare apples the data and sharing informa- a local dealer for the repair. “We expect the recall of the Executive Matthias Müller said
greater than when Mr. Obama and oranges in the same group tion and resources.” The move is a response to Passat to begin in early Febru- recently. But American author-
took office. and draw meaningful conclu- Ms. Yang said she antici- the disclosure last year by U.S. ary and then there will be a ities have yet to approve the
Research shows women’s sions,” said David Cohen, pres- pates completing the rule- environmental authorities that cascade of models,” a Volks- plan. To encourage U.S. car
lower earnings stem in part ident of DCI Consulting Group, making process by September Volkswagen rigged some of its wagen spokesman said. “We owners to be patient, Volks-
from interrupting their careers a Washington, D.C., firm that 2016, with employers submit- diesel engines to cheat on can’t do this all at once; we wagen offered its U.S. custom-
to care for children, or some- conducts pay-equity analyses ting their pay data for the first tests for toxic tailpipe emis- have to manage the workflow ers a goodwill package worth
times gravitating toward for companies. “You’re going time in September 2017. sions. Regulators are forcing of the repair shops. It will more than $1,000 last year.
The nature of that venture is

Electronic Arts Is in a Tough Battle
Business yet to be determined, but the
person said it won’t compete
Watch with Politico.
—Lukas I. Alpert
MERCK
FDA Approves Drug
For Hepatitis C
POLITICO Merck & Co. set a list price
of its new hepatitis C treatment
CEO to Leave Amid at a discount of more than 30%
Broad Reorganization off the list prices for rival drugs,
Jim VandeHei, the chief exec- in an apparent effort to compete
utive and co-founder of Politico, on price.
the digital news outlet that The U.S. Food and Drug Ad-
shook up the Washington media ministration approved Merck’s
scene when it launched nine new treatment for hepatitis C,
years ago, said he will leave the the latest entrant in a booming
company after the 2016 election. market for drugs for the viral in-
The move, announced in a fection—a market now domi-
memo from Mr. VandeHei late nated by Gilead Sciences Inc.
Thursday, is part of a broader Merck’s treatment, Zepatier,
reorganization at the company. is a once-daily, single-tablet
With his departure, financial combination of two drugs, gra-
ELECTRONIC ARTS /ASSOCIATED PRESS
backer Robert Allbritton will as- zoprevir and elbasvir. It is ap-

sume the CEO title. proved for patients infected with
Meanwhile, several other top the most common type of hepa-
Politico staffers will also depart titis C in the U.S., known as ge-
in coming months, including Kim notype 1, and a less common
Kingsley, Roy Schwartz, Mike Al- type, genotype 4.
len and Danielle Jones, Mr. Allbrit- Merck’s treatment will com-
ton wrote in a separate memo. pete with expensive drugs from
John Harris, Mr. VandeHei’s co- Gilead and AbbVie Inc.
founder, will remain and will take Gilead’s Sovaldi and Harvoni
on the position of publisher in ad- had combined sales of $14.2 bil-
dition to editor-in-chief. lion for the first nine months of Electronic Arts Inc. turned pushing the stock down the year, well ahead of its but shy of Wall Street’s esti-
Mr. VandeHei, 44 years old, 2015, helped by high price tags— in the kind of profitable quar- nearly 8% in after-hours earlier projection that it would mate of $1.81 billion, accord-
said in his memo he plans to about $84,000 for a typical ter, driven by strong sales of trading on Thursday. sell that many units by the ing to Thomson Reuters.
start a new venture. Messrs. Al- course of Sovaldi and $94,500 “Star Wars Battlefront,” that A single game can make or end of March. Adjusted profit of $1.83 a
len and Schwartz will be joining for Harvoni. has helped the company’s break a videogame publisher’s On an adjusted basis, over- share was ahead of Wall
Mr. VandeHei in his new venture The new drug has a list price stock price more than double earnings. EA said it sold more all revenue rose 26% to $1.8 Street’s and the company’s
after the election, according to a of $54,600 for a 12-week regimen. in the past two years. than 13 million copies of “Bat- billion from a year ago, more own forecasts.
person familiar with the matter. —Peter Loftus Investors wanted more, tlefront” before the end of than what EA had forecast —Sarah E. Needleman
B6 | Friday, January 29, 2016 * **** THE WALL STREET JOURNAL.
BUSINESS NEWS
BARBIE of its doll lineup until the last

two years. Admittedly, the
push was late, especially as
children are growing up in an
Continued from page B1 increasingly multicultural en-
a plethora of bodies,” Ms. vironment.
Guerrero said. “It’s nice to see “Barbie needed to catch up
that they have different to that,” Mr. Dickson said in
shapes and sizes because an interview. “Today, we rep-
those bodies do exist.” resent a vast array of choice,
One of Ms. Guerrero’s re- whether it be body or ethnic-
maining problems, however, is ity.” He wouldn’t comment on
the new doll molds still have whether more variations are
Barbie’s patented hourglass planned.
figure. “Not everyone has a Mattel has said that Barbie’s
very small waist,” she noted. sales at retailers have im-
Leading Barbie’s turn- proved in recent quarters, but
around is Richard Dickson, the turnaround hasn’t been as
Mattel’s president and chief evident in its wholesale results.
operating officer. Mr. Dickson As with other global brands,
was brought back to Mattel Barbie’s sales have been ham-
several months before Mr. strung by the stronger dollar.
Stockton’s dismissal, in hopes Mattel next week is set to report
that he could re-create Bar- results for the holiday quarter.
GETTY IMAGES
bie’s last successful stretch Analysts generally expect
earlier this decade. the company to show improv-
While Barbie dabbled with ing trends, helped by one of the
diversity in the past, Mattel best years the U.S. toy industry
hasn’t made it a prime focus has seen in more than a decade. An Oshkosh M-ATV on display in Poland. The company said it is facing more delays in completing deals in the Middle East
Defense Feels Oil’s Knock

U.S. companies deal region. an investor call that he partnerships with local com-
Analysts suggest that this learned the unnamed cus- panies to split the work and to
with shifting demands reflected some changing pri- tomer had frozen its budget win more deals.
among Middle East orities among overseas buy- last quarter, and was review- Other defense executives
ers, with a focus on boosting ing its spending plans. this week said such efforts
nations for equipment air defenses and munitions Mr. Jones, who recently vis- were bearing fruit, with over-
stockpiles. ited the region, said he re- seas sales continuing to ex-
BY DOUG CAMERON The Middle East is the larg- mained confident of complet- pand, even though U.S. prod-
est export market for U.S. de- ing the deal at some point. ucts have become relatively
The first signs are emerg- fense companies, which have Oshkosh, previously, has more expensive as the dollar
ing that falling commodity been selling billions of dollars sold hundreds of the trucks, strengthened.
prices are starting to hurt U.S. in combat aircraft, missile de- which analysts said was its “If anything, we’re seeing a
defense exports, as companies fense systems and other most profitable product, to the stronger demand than a slow-
deal with varying levels of de- equipment to the region. United Arab Emirates. down,” Raytheon’s Chief Exec-
mand for equipment, espe- “The Mid-East has slowed Defense export sales are utive Tom Kennedy told inves-
cially in the Middle East. down, and Australia as well,” notoriously lumpy, and negoti- tors Thursday, after returning
L-3 Communications Hold- said L-3 Chief Executive Mi- ations can take far longer to from a recent trip to the Mid-
ings Inc. and Oshkosh Corp. chael Strianese on an investor complete than domestic deals dle East.
said they are facing tougher call, adding that demand has as customers wrangle over Raytheon derived 31% of its
business conditions in the Mid- strengthened in other parts of work-sharing, technology sales last year from overseas,
dle East, with budget pressures Asia. transfer and pricing. the highest proportion among
from falling oil revenues lead- Oshkosh, a big maker of U.S. companies have in- big U.S. contractors, as coun-
ing government customers to mine-resistant military trucks, vested heavily to boost ex- tries look to acquire its Patriot
ROB DELORENZO/ZUMA PRESS
push back on signing off on said a hoped-for deal to sell ports, in part to counter a de- air defense system and Pave-
contracts on trucks and com- hundreds of its M-ATV ar- cline in Pentagon spending way laser-guided bombs.
munication-related equipments. mored vehicles to a Middle that only now is starting to re- “There’s probably been
On the other hand, Ray- East nation failed to material- cover. some re-prioritization,” said
theon Co., and its counter- ize last quarter, forcing the Exports account for a fifth Rob Stallard at RBC Capital.
parts at Lockheed Martin company to trim its 2016 guid- of the total revenue across the “It doesn’t mean the projects
Corp. and Northrop Grum- ance. largest contractors. that have been moved down
man Corp., say they have Wilson Jones, the com- Many of these companies the list are toast—it just
Barbie memorabilia at a 2006 national collector’s convention. seen strong demand from the pany’s chief executive, said on have set up local bases and means they’ll take longer.”
Weather The WSJ Daily Crossword | Edited by Mike Shenk

Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
1 2 3 4 5 6 7 8 9 10 11 12 63 1,000 kilograms PUZZLE
CONTEST
d t
Edmonton <0
(example #3)
Calgary 10s 0s 13 14 15 16
30s 64 Act the shark
Vancou
Vancouver 10s
17 18 19 (example #2)
Seattle 30s 20s 65 Speedy transport
p
Winnipeg 20s 30 Vainglorious
P d
Portland 0s 30s 20 21
l
Helena 40s Ottawa
Montreal (example #1) 32 Nasal laugh
Eugene
g
Billings Bismarckk A g t
Augusta 40s 22 23 24 Down 34 Relax, informally
Boise p s / . Pa
Mpls./St. Paul T
Toronto 50s 1 They help a 35 Deco luminary
A
Albany t
Boston
20s 25 26 27 28 29 30 boxer’s stance
ff
Buffalo oux FFalls
Pierre Sioux
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Hartford k60s
Milwaukee 36 Disturbances
50s 50s
Detroit New York
ew York 70s 31 32 33 34 35 36 2 FEMA operation 38 Requiring an ID,
Reno 30s Salt Lake C h g
Cleveland Cleve d
Philadelphia
L e City
C
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Cheyenne h
Omaha Pittsburgh
b h 80s
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Washington h 37 38 39
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Denver Charleston Richmondh gton
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DC 90s
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City 100+
L
Las C d
Colorado
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Wichita St.. Louis
L
Lo Louisville
Lou ill h d Kingsley in 44 University
Vega
Vegas p
Springs 60s igh
Raleigh 43 44 45 “Bugsy”
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Nashville catalog listing
Los A
Angel
Angeles Charlotte
C h l tt
Santaa F
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46 47 48 49 50
5 Dieter’s problems 45 Like maxed-out
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Phoenix Ab q q
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Oklahoma City C b
Columbia
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Atlanta Warm Rain 6 Brooklyn cagers credit cards,
Tuc
Tucson
D ll
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Jackson
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Birmingham 51 52 53 54 55 56 57 7 Fed. auditors often
Ft. Worth Cold
El P
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bil
Mobile Jacksonville 58 59
0s 70s Austin
A ti independence 47 ___ Laredo (city
Houston Stationary Snow
10s Newew Orleans l d
Orlando 60 61 62 from Serbia in on the Rio
80s an Antonio
San Tampa 2008 Grande)
20s Anchorage
A h g Showers Flurries 63 64 65
Honolulu
l l Miami 9 The U.K. is in it 48 Tolkien character
30s 40s 70s 10 Giraffe cousin who marries
Ice
HERE ON THE MAP | By Todd McClary 11 Baptisms and Aragorn
bar mitzvahs 50 Pachelbel work
U.S. Forecasts City
Today
Hi Lo W
Tomorrow
Hi Lo W City
Today
Hi Lo W
Tomorrow
Hi Lo W
This answer to this 20 Goes downhill 45 Moves 12 Swamp flora 52 “H-E-double-
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; week’s contest fast defensively
14 Moo ___ pork
Omaha 46 29 pc 49 32 pc Frankfurt 48 42 c 48 41 r hockey-sticks!”
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice crossword is a type 21 ___ up (confined) 46 ___ corda (piano
Orlando 65 43 s 69 49 pc Geneva 53 36 c 54 44 pc 18 Wagner heroine 53 Seahawks coach
Today Tomorrow Philadelphia 41 23 sf 40 30 pc Havana 73 57 pc 75 62 pc of geographical 22 Permits direction)
City Hi Lo W Hi Lo W feature. 19 CBS procedural Carroll
Phoenix 75 48 s 77 50 s Hong Kong 67 57 r 65 58 pc 23 CCLI quadrupled 49 15th-stanza spinoff, familiarly
Anchorage 32 20 pc 31 18 pc Pittsburgh 28 19 sf 42 33 c Istanbul 52 42 pc 49 40 c 54 CBS procedural
Across 24 It’s destroyed in subject of
Atlanta 55 35 s 63 44 s Portland, Maine 37 25 sf 38 29 sf Jakarta 88 75 t 88 76 t 23 Scrap with three
“Gravity”: Abbr. Ogden Nash’s
Austin 74 43 s 75 52 s Portland, Ore. 49 39 r 47 37 sh Jerusalem 48 33 pc 53 35 pc 1 Service seat 25 Blueprint detail spinoffs
Baltimore 38 17 pc 39 28 pc Sacramento 62 50 r 58 40 c Johannesburg 85 57 s 85 56 s 25 Scoring out “ABC of Baseball
(example #1) 26 Kyrgyzstan 55 ___ Khalifa
Boise 45 29 r 42 24 c St. Louis 49 37 pc 58 47 pc London 54 44 sh 48 41 sh 29 Moral authority? Immortals”
Boston 41 30 sn 42 33 c Salt Lake City 46 38 c 38 25 sn Madrid 54 37 sh 57 35 s
4 Breather mountain range (world’s tallest
(example #2) 31 Act the advocate 50 Image of Pluto,
Burlington 37 25 sf 35 32 sn San Francisco 59 52 r 56 46 c Manila 89 76 pc 91 77 s 27 “___ magnifique!” skyscraper)
8 Big name in 32 Sun tea brewing perhaps
Charlotte 54 27 s 58 37 s Santa Fe 53 29 s 57 33 s Melbourne 66 56 sh 74 56 pc 28 Trio of myth 56 Lip balm additive
Chicago 34 29 pc 46 36 pc Seattle 49 40 r 48 38 sh Mexico City 68 48 pc 70 46 pc sauce mixes spot 51 Indiana rival
29 Congressional 57 Lewis Black
Cleveland 27 22 sf 42 34 c Sioux Falls 38 25 pc 41 28 c Milan 55 40 pc 51 38 c (example #3) 33 Gaucho’s 53 Emergency exit
Dallas 75 48 s 74 56 s Wash., D.C. 41 24 pc 43 33 pc Moscow 35 30 sn 37 30 sn divider (example routine
13 Its stock symbol feathered prey device
Denver 55 37 pc 57 29 pc Mumbai 90 63 pc 90 63 pc #2) 59 D.C. insider
is CAR 37 Location of 58 Location of
Detroit
Honolulu
30 24 pc 43 33 c
81 69 s 81 69 s
International Paris
Rio de Janeiro
50 46 c
92 78 pc
51 46 r
94 77 pc 15 Field of example #2 example #3
Today Tomorrow
Previous Puzzle’s Solution
Houston 72 48 s 73 59 s Riyadh 53 33 s 57 30 s knowledge 40 Mention 60 Civil rights leader J A V A N A D I R S C P R
Indianapolis 36 29 pc 49 38 pc City Hi Lo W Hi Lo W Rome 59 46 pc 58 48 c
16 Jack of “The honorably Medgar O X E N OM E L E T R E A
Kansas City 57 30 pc 56 36 pc Amsterdam 52 47 sh 48 41 r San Juan 85 74 pc 83 74 pc B E T A WA L L C A L E N D
Las Vegas 67 47 s 71 52 c Athens 63 45 s 61 45 pc Seoul 42 30 c 42 23 c Great Dictator” 41 Function 61 Winnebago G R I S T T O S C A
Little Rock 63 44 s 70 54 s Bangkok 92 74 s 92 75 pc Shanghai 46 39 r 45 35 c 17 Location of 42 Total tribe S H A R O N S S T U T T E R
P A N AM A T E S T
Los Angeles 76 53 pc 66 55 pc Beijing 30 12 s 27 8 pc Singapore 87 77 t 87 79 c example #1 43 Tense situation 62 Caddie’s offering A N I MA L P L A N O D O R
Miami 69 51 pc 71 63 pc Berlin 47 42 c 48 37 r Sydney 84 70 t 84 67 t R O T N O O G I E S O V O
Email your answer—in the subject line—to crosswordcontest@wsj.com
s
Milwaukee 30 28 c 41 34 pc Brussels 49 46 sh 48 41 r Taipei 67 58 r 62 57 r K I A S H E A R T MO N I T

C R A T E E C O N O
Minneapolis 33 30 i 38 29 c Buenos Aires 82 64 pc 85 59 pc Tokyo 46 39 r 44 39 r by midnight Eastern Time Sunday, Jan. 31. A solver selected at random MA C R O N S C L A T T E R
Nashville 45 34 pc 63 47 s Calgary 39 27 pc 38 24 sn Toronto 25 16 c 36 32 sf will win a WSJ mug. Last week’s winner: Mike Miller, Houston, TX. A P H I D S H E R A
New Orleans 66 47 s 71 57 pc Dubai 69 60 pc 68 60 c Vancouver 48 39 r 46 37 r G R A P H I C N O V G R A D
New York City 40 27 sf 39 34 pc Dublin 51 35 sh 42 37 sh Warsaw 43 40 pc 48 37 c
Complete contest rules at WSJ.com/Puzzles. (No purchase necessary. MO I A D V I S E O H N O
Oklahoma City 69 37 s 68 48 pc Edinburgh 49 35 r 39 35 sn Zurich 48 33 pc 51 45 c Void where prohibited. U.S. residents 18 and over only.) A N N MO S T E L N O T E
© 2016 Dow Jones & Co., Inc. All rights reserved. 6DJ2872
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IN THE MARKETS C4 | MARKETS DIGEST C5 | HEARD ON THE STREET C8
Volatility Plan A.I. Meets

The BOJ
ASSOCIATED PRESS
NYSE proposes series of rule changes EXCHANGES | C2 GLOBAL FINANCE | C3
© 2016 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Friday, January 29, 2016 | C1
DJIA 16069.64 À 125.18 0.79% S&P 1893.36 À 0.55% NASDAQ 4506.68 À 0.86% 10–YR. TREAS. À 6/32, yield 1.984% OIL $33.22 À $0.92 EURO $1.0940 YEN 118.82 See more at WSJMarkets.com
$200 a barrel
Cloudy View
Wall Street forecasts frequently have failed to
Supply-Cut Hopes
180 anticipate the broad swings in the price of crude
oil. A look at some bold calls during the financial
crisis and the oil bust.
Lift Crude Over $33
160
Crude-oil prices rose to a tile Exchange, the highest set-
three-week high on hopes that tlement since Jan. 7. Brent, the
Russia and the Organization of global benchmark, rose 79
140 the Petroleum Exporting Coun- cents, or 2.4%, to $33.89 a bar-
2 rel on ICE Futures Europe.
By Nicole Friedman, When booming output from
120 James Marson the U.S. helped push the global
and Summer Said crude market into oversupply
in 2014, other large producers
1 3 tries would cooperate on pro- responded by increasing their
100 Brent crude-oil duction cuts. production instead of cutting
futures price, weekly 4 Russia’s energy minister back. Saudi Arabia and Russia
said Thursday that the world’s both sharply raised their oil
80 major oil-producing countries output in 2015, helping keep
could discuss production cuts the market in a glut and send-
Date of forecastt 1 at a meeting in February ing prices to fresh lows.
60
aimed at OPEC historically has cut
COMMODITIES finding a production in low-price envi-
Forecast price Forecast met, way to bol- Please see CRUDE page C4
or nearly met 5 6 ster weak
40 oil prices. Oil prices dropped
to 12-year lows last week amid Still Pumping
robust production around the Oil output has been strong,
20 world and increasing concerns pushing down prices.
about slowing global growth.
2007 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 12 million barrels a day
Prices soared more than 7%
FORECASTS: in intraday trading after Rus- Crude oil production
Sept. 10, 2014 Jan. 15, 2015 Sept. 11, 2015 Dec. 10.8
March 7, 2008 July 14, 2008 March 29, 2014 sian news agencies reported 11
1 Goldman 2 Lehman Bros.: 3 Citigroup: 4 Barclays 5 HSBC lowers 6 Goldman the comments.
Sachs Group: ‘Will fall to $93.’ ‘Will fall to $75.’ lowers 2015 forecast to Sachs: ‘Could fall But futures pared gains 10
‘Could hit $200.’ Drops to that level Touches that level average Brent $62.50 from $90. as low as $20.’ later in the session, after a se- 10
Later that in early October, after 6 months, forecast to $96 Oil has fallen as nior OPEC delegate said no 9.2
summer: $145 on the way to $35 kept falling from $107. low as $27. emergency meeting had been
9
by December called. OPEC delegates said an
earlier proposal to cut output
Russia*
by 5% had been suggested by 8
Source: SIX Financial Photo: Simon Dawson/Bloomberg THE WALL STREET JOURNAL. Saudi Arabia
Algeria and Venezuela, not the
U.S.
Banks Rip Up Oil Forecasts

cartel’s most important pro-
ducer, Saudi Arabia. 7
Light, sweet crude for 2014 ’15
March delivery settled up 92 *Crude oil and liquid fuels supply
cents, or 2.8%, at $33.22 a bar- Source: Energy Information Administration
rel on the New York Mercan- THE WALL STREET JOURNAL.
Analysts keep revising Analysts at big banks have reduced its first-quarter price coaster ride that is now slip-
been scrambling to lower their forecasts for the second time ping down the contours of
For Get-Rich-Slow Plan

their forecasts lower; oil-market forecasts after in two months on Jan. 15. It that abyss,” J.P. Morgan oil
roller coaster leaves prices plunged to 12-year lows expects global benchmark strategists David Martin and
below $30 a barrel in January. Brent to average $31.50 in Upadhi Kabra wrote in a client
Exxon Mobil Is Safe Bet

‘a queasy feeling’ As recently as November, 2016—down from a Dec. 18 note.
banks were expecting the prediction of $51.50, itself Credit Suisse Group AG
BY CHRISTIAN BERTHELSEN global Brent contract for oil to down from a view held in Oc- and Citigroup Inc. also have
average $57 a barrel in 2016. tober of $54.75. ripped up their forecasts dur- Investors buying beaten- ten due to fears of financial
Want to know how much Now, that number has fallen to “We have that queasy feeling the past two weeks. The down energy stocks have distress, the integrated giant
further oil prices might fall? $50 and could fall again. ing one gets in the early Swiss bank now thinks Brent been bitten repeatedly by re- is off by less than one-third.
Don’t ask Wall Street. J.P. Morgan Chase & Co. stages of a vicious roller- Please see BANKS page C2 newed, vicious plunges in oil. On Thursday, when a quickly
A safer and discredited Russian news re-
possibly port of an emergency meet-
Cash Is Fleeing China. Now What?

more-re- ing of oil producers briefly
warding ap- sent crude surging, Exxon
proach is to shares rallied by a little over
put a tiger in 3%. An index of pure-play ex-
BY KEN BROWN China’s foreign-exchange said Charles Collyns, chief the $700 billion decline in HEARD ON their tank ploration-and-production
reserves fell by $700 billion economist for the Institute of China’s foreign-currency re- THE STREET with Exxon companies jumped 7%.
For lovers of huge numbers, last year. The flood of cash International Finance, a global serves is bigger than the total SPENCER Mobil. So buying Exxon shares,
China has long been a gift. The across its borders is compli- trade group for the financial foreign-currency reserves of JAKAB Value even if an investor timed the
flood of cash cating the country’s economic industry. all but three other central seekers bottom in oil prices per-
ANALYSIS leaving the transformation and is raising The size of China’s $10 tril- banks in the world—Japan, might balk at fectly, hardly would be a get-
country has pro- the risks of problems in other lion economy and its still-huge Switzerland and Saudi Arabia. how little Exxon actually has rich-quick move. But inves-
duced another emerging markets, where cash foreign reserves means the China’s outflows are the big- been affected by the indus- tors shouldn’t lose sight of
impressive statistic: We are already is flowing outward. outflow won’t cause an imme- gest in absolute terms, al- try rout. While dozens of en- the get-rich-slow nature of a
witnessing the greatest epi- “What happened in 2015 diate crisis in the country, though other countries have ergy-related companies fetch company that seems to
sode of capital flight in his- coming out of China was un- though there are risks. Ac- had larger outflows relative to under half or even one-tenth emerge from each industry
tory. precedented in magnitude,” cording to World Bank data, Please see CHINA page C2 of their peak 2014 values, of- Please see EXXON page C8
This Airline Sees Clearer Skies Blackstone Thinks It’s Time to Buy
BY STEVEN RUSSOLILLO can has had to deal with ris- BY MATT JARZEMSKY opportunities that weren’t the fourth quarter. It stayed
Flying Low ing labor costs. Through the available when markets were away from energy, a sector
This has been a good time Multiple of enterprise value to first nine months of 2015, The market’s recent tumble booming. that has stung much of Wall
for airlines. It hasn’t been so earnings before interest, taxes, American’s expenses for has private-equity firms reach- The jump is a significant, as Street over the last few years.
good for airline investors. depreciation and amortization wages and benefits rose 11% ing for their checkbooks, if private-equity firms in recent In November, the firm
The sharp plunge in oil from a year before to $7.1 Blackstone Group LP’s latest years have been busier selling reached a deal to buy a 17%
prices has greatly benefited billion. Additionally, Ameri- results are any indication. than they have been buying, stake in ATM maker NCR Corp.
the big four, S&P 500 11.9 times can has suffered from lower The world’s largest private- leaving hundreds of billions of At the time, the company’s
AHEAD OF U.S. carriers, JetBlue 6.3 passenger revenue per avail- equity firm said Thursday it dollars of capital on the side- shares were down more than
THE TAPE which account able seat mile. invested a record $32 billion in lines. But a sustained decline 30% from a 2013 high.
for roughly Southwest 5.4 Such concerns aren’t as 2015, up 21% over 2014. And a in prices could change that “New investments have be-
80% of the do- Delta 4.2
bad as severe price wars or large portion of that spending equation, leading to new income much more attractive” as
mestic air-travel market. capacity surges, though. So growth happened in the fourth vestments across a broad many companies’ shares have
Two of them, United Conti- American Airlines 4.1 there is reason to believe the quarter, the firm said, as swath of the market. fallen 30% to 40% from recent
nental Holdings Inc. and recent share-price declines choppy markets dragged down Blackstone, for its part, highs and tighter credit mar-
United 3.5
Southwest Airlines Co., al- have gone too far. prices and exposed investment spent heavily on real estate in kets limit their access to capi-
ready booked record fourth- Source: FactSet American, in particular, tal, Blackstone President Ham-
quarter earnings. Delta Air THE WALL STREET JOURNAL. trades at a steep discount ilton “Tony” James said on a
Lines Inc. recently swung to relative to its competition. conference call Thursday to
a quarterly profit. 30% of its market value. Its prospective multiple of discuss the firm’s fourth-quar-
Next up is American Air- More broadly, the S&P 500’s enterprise value to earnings ‘New investments ter results.
lines Group Inc.’s fourth- airline index has dropped before interest, taxes, depre- have become Still, the same conditions
quarter results, which also 23% in that time. ciation and amortization is that created buying opportuni-
are expected to shine. Ana- Much of the weakness has 4.1 times. That is cheaper much more ties for Blackstone dragged
lysts anticipate earnings of to do with the airline indus- than a basket of competitors attractive’ down the value of some of its
$1.97 a share, up 29% from a try’s boom-and-bust nature. and less than half that of the holdings, leading to worse-
year ago. Historically, prosperous con- S&P 500. HAMILTON ‘TONY’ JAMES, than-expected quarterly re-
And yet, a glance at those ditions have prompted carri- As long as airlines don’t PRESIDENT sults. The firm’s fourth-quarter
four companies’ stock prices ers to increase planes and show signs of returning to profit fell to $201 million, or
MICHAEL NAGLE/BLOOMBERG NEWS
shows investors aren’t reap- add seats too quickly. Price their boom-and-bust ways, 23 cents a share, from $551
ing the full benefits. After wars ensued, profitability American’s shares should see million, or 89 cents a share, in
doubling from October 2014 suffered and losses followed. clearer skies ahead. the same period a year earlier.
through this past March, While that has yet to play Blackstone shares closed
American has lost more than out this time around, Ameri- Email: tape@wsj.com down 1.9% at $25.12 Thursday.
Private-equity firms have
INDEX Commodities.................................................... C7 Dividend News............................................... C4 Global Finance................................................. C3 Mutual Funds........................................... C8 spent the past several years
Bond Tables............................................... C6 Credit Markets................................................ C6 Exchange-Traded Funds......................... C4 Heard on the Street................................... C8 New Highs & Lows........................... C6,7 furiously selling companies
Cash Prices................................................. C8 Currency Trading.......................................... C5 Finance Watch................................................ C3 Money Rates................................................... C8 Stock Listings....................................... C4,7
Please see BUY page C2
C2 | Friday, January 29, 2016 THE WALL STREET JOURNAL.
MONEY & INVESTING
BANKS where the bottom was,” said

Stephen Schork, president of
oil-research consultancy
Schork Group. “That was very
Continued from the prior page difficult to model.”
will average $36.25 a barrel Wall Street did call one big
this year, down 38% from its turn in oil—the beginning a
previous forecast of $58 in decade ago of the run past
September. $100. Goldman Sachs Group
Wall Street’s revisionist Inc. analyst Arjun Murti drew
thinking on oil is in part the headlines and raspberries
fallout of seven years of easy when he declared in March
money from the Federal Re- 2005 that oil was in a “super
serve and other central banks, spike” that could take prices
which may have distorted as- to $105 a barrel. Crude was
set prices and are creating un- trading around $55 at the
expected volatility across a time. Three years later, it had
wide range of investments as shot past $100 on its way to a
the Fed starts to pull back. record of $146 in July 2008.
The period of rock-bottom Mr. Murti had a call that year
interest rates unleashed a saying it could hit $200.
powerful stock-market rally The end to the multiyear
that defied slow economic bull market, however, has con-
growth. Economists have founded bank analysts. Oil,
grappled to understand how which mostly stayed above
inflation has remained sub- $100 a barrel until mid-2014,

dued for so long and why bond began a long slide that took
yields have barely budged. 75% off its value in 18 months.
Few analysts signaled the Of the major Wall Street
slowdown in China’s economic banks, Citigroup has fared
growth that has been upend- best in predicting the collapse
ing commodity markets and in oil prices, saying prices
the developing world. could fall to $75 a barrel in
Oil prices have been partic- March 2014, a time when it
ularly tricky to forecast, in was trading in the market at Traders at the NYSE on Aug. 24, when circuit breakers were triggered en masse after prices plunged due to uncertainty over China.
nearly $110.
NYSE Aiming to Tackle Volatility

As the oil-market rout
Years of cheap credit deepened in late 2014, ana-
enabled U.S. shale lysts were quick to predict a
recovery in the second half of
producers to keep 2015. “We suspect that the in- BY BRADLEY HOPE during periods of instability. NYSE’s chief rivals referred to breakers require a pause in
pumping longer. dustry will react relatively fast “We view it as our obliga- Rule 48 and how NYSE uses trading if the S&P 500 index
to the new geopolitical price The New York Stock Ex- tion to turn the good sugges- floor traders to manually open drops more than 7% before
environment of oil,” Credit Su- change proposed a series of tions into action that actually stocks. That process some- 3:25 p.m. Exchanges narrowly
isse said in December of that rule changes designed to avoid improves the markets,” NYSE times takes longer, especially avoided having to implement
part because years of cheap year. “We assume that with another repeat of the market President Thomas Farley said during times of heightened those on Aug. 24, but there is
credit have enabled U.S. shale less of a supply overhang in mayhem that struck in August. in an interview Thursday. volatility. a risk they could be the origin
producers to keep pumping H2-2015 prices can recover Many of the proposals are The exchange operator, part But NYSE’s Mr. Farley said of another structural problem
longer than most expected. further,” calling for average widely agreed upon among ex- of Atlanta-based Interconti- “our opening process on Aug. in the future, Mr. Angel said.
The margin between an over- prices of $79 a barrel in that changes and market partici- nental Exchange Inc., also 24th and every other day is NYSE said in its proposal
supplied and undersupplied period. pants, but they don’t include called for a rule that would re- superior to other exchanges that there actually may be a
market also can be very nar- Though the market did re- changes to some of the more quire any restarting of trading because it results in lower vol- need for additional mar-
row, while accurate data—and bound last spring, prices have contentious issues, such as after a halt to begin with a re- atility and better price discov- ketwide circuit breakers, but
predictable outcomes—across been in a free fall ever since, NYSE’s Rule 48. turn to the exchange where ery of listed companies.” the matter should be studied
the diaspora of global produc- and recovery scenarios have The rarely used rule, which the shares are listed. One area that wasn’t com- more to avoid unintended con-
ers and consumers can be been pushed off another year. allows market makers to open That would help avoid any prehensively addressed was sequences.
tough to come by. Oil markets are being trading of stocks later on vola- conflicts in which stocks re- the potential for marketwide Structural problems are
Credit Suisse’s global en- moved by concerns about Chi- tile days, was criticized for open at separate exchanges, circuit breakers to cause prob- rarely the initial cause of
ergy economist, Jan Stuart, nese demand and a supply glut contributing to problems on Mr. Farley said. problems in the markets, but
said the bank’s forecasts were that could intensify when Iran, Aug. 24. Market observers have said they can greatly exacerbate or
thrown off last year by Saudi
Arabia’s move to increase pro-
free of sanctions over its nu-
clear program, ramps up pro-
On that day, automatic halts
of stocks—known as circuit
2016 could bring more periods
of volatility as the global Rule 48 spread problems. One excep-
tion was the 2010 “flash
duction at a time when global duction and shipments. breakers—were triggered en economy adjusts to rapid An NYSE order that allows crash” when the Dow Jones
physical markets were already The Organization of the Pe- masse after prices plunged changes in the price of oil and market makers to open trading Industrial Average dropped
flooded with oil, though con- troleum Exporting Countries during the morning due to un- fears that China’s economy is of stocks later on volatile days more than 1,000 points before
tinued booming production in and U.S. producers have kept certainty over China’s econ- slowing down. rapidly recovering.
the U.S., despite increasingly output high long past the omy. NYSE’s own system of Trading on Aug. 24 high- Studies of that event have
uneconomic conditions, also point when analysts and inves- using floor-based traders to lighted the cost of structural lems in the U.S. market, said laid the blame on high-speed
played a role. tors expected they would have bring order to the market breakdowns in the way ex- James Angel, a finance profes- traders temporarily pulling
“We underestimated the in- scaled back to stabilize prices. ended up exacerbating prob- changes match orders. sor at Georgetown University. some of their bids and offers;
ertia in the system,” Mr. Stu- The Federal Reserve’s move lems at times, observers said. Decisions by traders on the “The way we’ve designed mismatches of rules between
art said. toward a tightening posture On Aug. 24, NYSE also in- floor of NYSE that day con- the marketwide circuit break- the futures and stock markets;
Still, the dismal forecasting signals the era of cheap money voked the rule to allow market tributed to extraordinary ers is very problematic,” he and other problems, including
record is notable at a time may be ending as well, putting makers to forgo disseminating swings of some stock prices. said. “They just blew up in the alleged manipulative trad-
when oil is at the top of every further pressure on markets. information about how poten- Shares of KKR & Co. declined China, and we need to focus ing of a London trader that
investor’s agenda. —Georgi Kantchev tially volatile stocks might more than 50%, while those of more on them here.” day.
“No one had any idea of contributed to this article. trade. The rule was designed J.P. Morgan Chase & Co. and This month, China used The proposals were a good
to make it easier to open the General Electric Co. dropped marketwide circuit breakers to first step, but they won’t help
markets faster, but many more than 20% before all slow down trading. Share unless all the exchanges agree
BUY deployed a record $2.6 billion

during the period, as corpo-
rate-debt prices fell to the
kinds of low prices that typi-
stocks ended up opening late.
NYSE’s proposals, created
with the help of consulting
firm McKinsey & Co., focus on
three recovered most of the
day’s losses.
Robert Greifeld, chief of
Nasdaq Inc., said the most im-
prices crossed the downward
limit of 7% on two days in a
week, causing all trading to be
halted for the day. That, in
to make changes in sync with
each other, said Bernard
Donefer, a Baruch College and
New York University professor
Continued from the prior page cally accompany economic adjusting how circuit breakers portant change would be for turn, increased uncertainty in who studies capital markets.
and other assets into rising contraction in the U.S., the are triggered, making trading NYSE to start opening the other markets. China’s securi- “Unless everybody is con-
markets. But they invested rel- firm’s executives said. halts last longer, and getting market “on time at 9:30 a.m.” ties regulator has suspended sistent, it’s not going to have
atively little. The firm, however, didn’t the exchanges to agree on the along with other exchanges. the practice. the benefit they expect,” he
“We’re like a basketball touch the more than $8 billion same rules to avoid conflicts The comment from one of The marketwide circuit said.
team without a 24-second in funds dedicated to buying
clock,” Blackstone Chief Execu- energy companies and their
tive Stephen Schwarzman said debt, assets that burned Wall
early last year. “We only shoot Street last year as oil, gas and
when we get a truly open shot other commodities’ prices fell
we’re confident will go in.” farther than many expected.
CHINA Capital Flight
Hundreds of billions of dollars have left China, posing risks to the country and also to emerging markets,
which are struggling with their own capital outflows.
As of June 30, 2015, firms Blackstone’s traditional buy- Continued from the prior page
like Blackstone had amassed out business eschewed large the size of their economies. China’s foreign-exchange Net capital flows Composition of China’s
some $1.3 trillion to spend on corporate deals in favor of The big worry is that China reserves China Other emerging markets capital flows, 3Q 2015
a broad array of as- about a dozen smaller devalues its currency, which $4 trillion $500 billion Forecast
sets, including com- purchases with an av- would come at a time that Outflows other
panies, debt, real es- erage size of less than money already is flowing out 16%
250 than foreign lending
tate and energy, $300 million, Black- of emerging markets as inves- 3 Repayment of
according to data stone Chief Financial tors grow more risk averse 23%
foreign loans
provider Preqin. Officer Michael Chae and the U.S. Federal Reserve 0
If Blackstone’s said Thursday. slowly begins to raise interest 2
Repatriation of
2015 spending is any To be sure, market rates. If the yuan does fall –250 30%
foreign inflows
indication, the indus- volatility cuts both further, it makes the econo-
try may be gearing up ways for Blackstone. mies of its Asian neighbors 1
–500
to part with a big And a broader eco- less competitive. That could 31%
Foreign
chunk of that cash. nomic downturn, lead to more capital flight lending
0 –750
The firm’s publicly should one material- from emerging markets,
traded competitors, ize, could do more which could drain foreign- 2013 ’14 ’15 2000 ’05 ’10 ’15
Stephen
Apollo Global Man- Schwarzmann harm than good for currency reserves in countries Sources: People’s Bank of China (reserves); Institute of International Finance (flows);
agement LLC, KKR & the firm. trying to keep their curren- Oxford Economics via CEIC (composition) THE WALL STREET JOURNAL.
Co. and Carlyle The firm’s fourth- cies from falling. Places that
Group LP, will give their own quarter economic net income, do see their currencies tum- collapse have led many people ing up efforts to stem the sources of risk,” said Andrew
signal of the industry’s spend- which accounts for cash earn- ble also could face inflation, to try to get their cash out of flood of money with new rules Tilton, the chief Asia Pacific
ing outlook when they report ings as well as the change in slowing investment and ta- China, whether or not it was making it harder for foreign economist at Goldman Sachs.
full-year and fourth-quarter the value of its holdings, fell pering growth. earned illicitly. companies in China to repatri- Compared with China, the
earnings over the next several sharply to $436 million, or 37 Most historical cases of The dream of many Chinese ate earnings and for investors impact of capital flight has
weeks. cents a share, from $1.45 bil- capital flight have one main to have their children edu- to move yuan overseas. been much worse in Russia,
Blackstone said it stepped lion, or $1.25 a share, a year cause—economic turmoil, po- cated overseas is another The biggest problem for the other major recent exam-
up its buying of real estate, earlier. Earnings missed Wall litical instability or an outside cause of long-term capital out- China so far is perception. ple of large outflows. The
companies and debt in the last Street’s consensus estimate of crisis that leads investors to flows. Capital flight signals a loss of $330 billion that flowed out of
three months of the year as 46 cents a share, according to pull their cash home. In One big source of the out- confidence in the govern- Russia in 2014 and 2015 was
the prices of stocks, debt and a Thomson Reuters survey. China, however, there are sev- flows will likely ease this year. ment’s ability to run the econ- far bigger relative to the size
other assets fell. Blackstone One of Blackstone’s largest eral interconnected reasons Many Chinese companies bor- omy. of the economy and had a far
had about $80 billion in so- investments—its roughly 46% that both locals and foreign- rowed in dollars in recent The perception is made greater impact, contributing
called dry powder heading into stake in hotel giant Hilton ers are pulling out their years to take advantage of worse in China by the govern- to a collapse in the ruble, a
2016. Its assets under manage- Worldwide Holdings Inc.—has money, and the combination lower interest rates outside ment’s opacity and by the sharp contraction in the econ-
ment grew to $336.38 billion lost more than 30% of its appears to be making the sit- China. A weaker yuan has economy’s difficult transition omy and a tightening of li-
from $290.38 billion at the end stock-market value over the uation worse. made that borrowing more ex- from reliance on big infra- quidity.
of 2014. past year. First, billions of dollars pensive, so companies have structure and exports to con- That China has been able to
Real estate, in particular, Blackstone executives said were invested in China on the been rapidly paying off their sumer spending. avoid all that shows the coun-
was a big source of new in- they don’t expect to see a re- assumption that strong eco- dollar debt, often by borrow- The other risk to China is a try’s economic strength—in-
vestment for Blackstone. The cession in the U.S. “I don’t nomic growth would continue ing at home. cash crunch. While this ap- cluding a solid capital-account
firm’s property arm spent $7.8 think the world is ending,” Mr. and the yuan would keep ap- Finally, the flows are driven pears unlikely, tight money surplus—and the tools avail-
billion in the fourth quarter, a Schwarzman said Thursday. “I preciating. Both assumptions by a belief that it will only get could make it harder for heav- able to Beijing.
tally that includes the Black- think we’re going through an have been proved wrong. harder to move money off- ily indebted companies and lo- “China doesn’t need to shut
stone-led deal for Manhattan’s adjustment and people like Second, Chinese President shore. Individuals are limited cal governments to roll over the outflow, just contain it,”
massive Stuyvesant Town and ourselves, who own long-term Xi Jinping’s corruption crack- to $50,000 a year, though their loans. Mr. Tilton said.
Peter Cooper Village apart- things and add enormous down and the effort to blame there are multiple ways to get “If you’re going to tell the
ment complex. value, end up at the end of the finance-industry executives for around the restrictions. The story of a serious downturn, Two o’clock in China: Time for
Blackstone’s credit business day being mega winners.” last summer’s stock-market Chinese government is ramp- that’s one of the biggest stocks to fall............................... C4
THE WALL STREET JOURNAL. * * * * * Friday, January 29, 2016 | C3
GLOBAL FINANCE
Technology Reads BOJ Tea Leaves Proposal
Artificial intelligence is
new tool, but the
Word Processors
Nomura Securities and Credit Suisse use artificial intelligence to
had been experimenting with
AI for about a year and a half,
analyzing information from
sentiment was improving,” said
Nomura economist Yoshiyuki
Suimon.
Shifts
central bank does the analyze Bank of Japan text for clues to possible changes in
unexpected sometimes monetary policy.
Credit Suisse Index Nomura Index
sources such as corporate-fi-
nancial reports, chat boards
and news articles. Last sum-
mer, the team decided it was
Of course, central bankers
are hardly forthright when
talking about their intentions
for monetary policy. Some-
Balance
BY MEGUMI FUJIKAWA
TOKYO—Investors have
A reading above 1 indicates a
likelihood of easing.
Measures broad economic
sentiment. Nomura doesn't have
a threshold for easing.
ready to apply the technology
to macroeconomic analysis.
Yuhki Yamamoto, Nomura’s
times the BOJ comes out of left
field, as it did in December
when it announced “supple-
For EU
spent a lot of time analyzing 1.5 70 senior quantitative analyst, mentary measures” to augment BY DAVID WIGHTON
Bank of Japan statements for who led the project, said AI its easing program or does the
clues to its monetary-policy de- 1.0 65 analysis offers a higher level of unexpected as it did Friday. Planned changes to the way
cision Friday. Two firms in To- objectivity, partly by eliminat- Neither firm’s indicator investors in Europe pay for
kyo say they also have comput- 0.5 60 ing human discretion about pointed to an expansion of eas- brokers’ stock research could
ers on the job. what words should be analyzed ing Friday, but because they have an unintended conse-
Nomura Securities Co. and 0.0 55 or given more weight. only cover BOJ statements quence: a rise in U.S. owner-
Credit Suisse Securities said Credit Suisse cautioned that through the most recent mone- ship of European companies.
recently they have artificial in- –0.5 50 its index provides only a “de- tary-policy meeting, they don’t The changes will make it
telligence crunching the text of cent level of indicative value,” reflect the effects of recent relatively more lucrative for
BOJ economic assessments to –1.0 45 and only in the nearer term, global-market turbulence, brokers to service U.S. asset
supplement their human em- and should be used to augment which has resulted in the yen managers, leading these inves-
ployees’ judgment regarding –1.5 40 human analysis. gaining strength and Tokyo tors to become increasingly
possible policy shifts. Still, its indicator, which shares tumbling in recent dominant shareholders in
2010 ’11 ’12 ’13 ’14 ’15 2010 ’11 ’12 ’13 ’14 ’15
As it turned out, the Bank of wasn’t yet in place, would have weeks. smaller European companies,
Japan did the unexpected on Sources: Nomura Securities, Credit Suisse THE WALL STREET JOURNAL. flagged a “high chance” of ad- Yutaka Matsuo, an AI expert according to one of the U.K.’s
Friday by introducing a nega- ditional BOJ action in October and a project associate profes- leading independent brokers.
tive-interest-rate policy as a Such text mining, or natural- BOJ governor—from January 2014, when the central bank sor at the University of Tokyo, Oliver Hemsley, chief execu-
sputtering economy, low infla- language processing, might 2010 through December 2015. shocked markets with a big ex- said he doubted that AI-based tive of Numis Corp. PLC, said
tion and turbulent financial parse BOJ statements for the The program learns as it pansion of its easing program, analysis will become dominant that new rules proposed by
markets threaten to undermine frequency of words such as “in- goes, checking the correlation Credit Suisse said in a recent in the financial sector soon. He European Union authorities
Prime Minister Shinzo Abe’s flation,” or phrases such as between keywords for eco- report. And it pointed to a lim- said he is hopeful such technol- would significantly reduce the
economic-revival plan. The cen- “weakening expectations.” nomic or price conditions and ited chance in October last ogy will become available amount of research European
tral bank cut its deposit rate on Credit Suisse said it has cre- keywords indicating concerns year, when many were predict- within the next 10 years. asset managers are prepared
cash deposited by commercial ated a numerical indicator of or negativity. ing action but the central bank The BOJ itself is among cen- to pay for.
banks in excess of required re- the likelihood the BOJ will ease Nomura also uses deep stood pat, Credit Suisse said. tral banks watching develop- “It will certainly come
serves to minus 0.1% from 0.1%. monetary policy. learning, in which software Similarly, Nomura’s index ments in the field of computa- down by half, if not more,” he
Nomura and Credit Suisse Designing the indicator, the mimics human neurological also had shown an uptick in the tional-text analysis, although it said in an interview.
have joined data analysts—in- BOJ Text Index, involved using functions, to study and inter- central bank’s economic assess- is still premature to say it can But because the rules won't
cluding social scientists, jour- an algorithm to analyze more pret the BOJ’s views. The No- ment before last October’s be useful in policy making, said cover U.S. asset managers op-
nalists and central bankers than three million Japanese mura AI economic-sentiment meeting. Seisaku Kameda, head of the erating outside the EU, these
themselves—in the growing characters contained in 2,400 index is based on analysis of “Some market participants economic and financial-studies will increasingly become the
use of algorithms to quantify pages of BOJ statements and the BOJ’s monthly economic re- had held on to their wrong ex- division at the BOJ’s Institute target for brokers offering U.K.
text in search of insights into reports—as well as speeches ports. pectation for easing even for Monetary and Economic company research and dealing
sentiment. and news conferences by the Nomura’s research group though the BOJ’s economic Studies. services.
“Over a period you will see
more U.S. shareholders in U.K.
Bad Loans Finance

companies. I think they will
become dominant,” he said.
Historically, analysts’ re-
Still Mar Watch search has been financed by

the fees that investment funds
pay brokers for buying and
Italian selling shares. But the Euro-

pean Commission wants pay-
ment for research to be com-
Lenders DEUTSCHE BANK

Investment Bank
pletely separated from trading
fees.
Industry lobbyists believe
BY MIKE BIRD Sputtered in Quarter the final rules, expected to be
Deutsche Bank AG’s invest- published in the next few
Even amid the selloff in Eu- ment bank, typically its biggest weeks, will have been watered
ropean stocks this year, Italian profit engine, lost momentum down after opposition from
banks have been particularly and market share in key busi- banks and asset managers.
terrible performers. nesses in the fourth quarter, the But Mr. Hemsley said they
Shares in UniCredit SpA, bank said, capping a painful year are still likely to have a big
once Italy’s largest bank by at the start of a multiyear turn- impact, making European in-
market capitalization, have de- around effort. vestors more reluctant to buy
KRISZTIAN BOCSI/BLOOMBERG NEWS
clined more than 40% since Executives at Germany’s larg- research and shifting the own-
late October, plunging 6.5% est bank acknowledged that em- ership of smaller companies
Thursday. ployee morale has taken a beat- outside the EU.
The sector slumped on the ing along with financial He added that this wouldn’t
details of a deal between the performance. Deutsche Bank’s necessarily hurt firms such as
European Commission and the shares continued their slide Numis, which already gener-
Italian government designed Thursday, falling 5.4% after the ates a third of its revenue
to encourage banks to sell company detailed quarterly and from brokering U.K. stocks to
low-quality debt. Investors ap- full-year losses it had announced investors in the U.S.
pear worried that the plan last week. John Cryan says Deutesche Bank stands ‘a good chance this year’ of returning to profitability. “But over time the empha-
wouldn’t be sufficient to clean The bank’s shares have de- sis would move across the At-
up the banks’ balance sheets. clined 28% this year. That is nance chief, said they see no “when the time is right,” Trea- The postponed sale was tar- lantic and I’m not sure that’s
Italy’s FTSE MIB index fell worse than most peers, including need to raise fresh capital. sury chief George Osborne said. geted at the general public good for London,” he said.
3.5% on Thursday and is down other European investment Asked when Deutsche Bank “With these turbulent financial rather than financial institutions. Will Dennis, head of com-
15% on the year. banks that also are grappling might again be profitable, Mr. markets, now is not the right Advisers to the government had pliance at the Association for
with strict new regulations and Cryan said, “We stand a good time to have that sale.” long been skeptical about the Financial Markets in Europe, a
Some fear the plan shedding employees, businesses
and risk.
chance this year.”
—Jenny Strasburg
A spokeswoman for Lloyds said
the timing of any future retail sale
practicality of such public offer-
ings, because they are long and
trade body that represents
banks and brokers, said one
isn’t sufficient to “The share price drives mo- is a matter for the government. complex and can leave potential consequence of the rule
clean up the banks’ rale. Morale drives motivation,”
Deutsche Bank’s new co-chief
LLOYDS BANKING The British government began
selling its stake in the lender last
shareholders open to large
swings in the share price.
changes could be that more
research on EU companies will
balance sheets. executive, John Cryan, told re-
Stock Sale Put Off year and owns less than 10% of The government has been un- be published in the U.S. and
porters at a morning news con- The U.K. government has the bank, which was bailed out der pressure to share some of elsewhere outside Europe.
ference in Frankfurt. With a divi- postponed a planned sale of by taxpayers in 2008. the upside of its bank-privatiza- “That will, in time, lead to
Italy’s banks have a tremen- dend unlikely until 2017, he said, shares in the partially state- Officials were planning to sell tion plan with ordinary taxpay- greater share ownership in Eu-
dous proportion of nonper- some shareholders likewise have owned lender Lloyds Banking £2 billion ($2.8 billion) worth of ers. Would-be buyers were of- ropean companies by U.S. and
forming loans, which the Euro- shown a “lack of patience.” Group PLC, citing turmoil in fi- shares to the public this spring, fered a 5% discount to the other non-European share-
pean Central Bank defines as But Mr. Cryan, who replaced nancial markets. but Lloyds’s market value has market price, and the treasury holders,” Mr. Dennis said.
debt with payments overdue former co-CEO Anshu Jain in The news is another sign of fallen 15% in the last three said investors who hold on to U.S. investors owned 24.9%
by at least 90 days. There is July and who will become sole nervousness in stock markets months as concerns about the the stock for more than a year of the shares in U.K.-listed
now a sizable gap between It- CEO of the German lender later following weeks of volatility trig- health of the Chinese economy would receive one bonus share companies in terms of value at
aly and the other large euro- this year, said he is optimistic gered by fears over the health of have dragged down stock mar- for every 10 purchased. the end of 2014, according to
zone economies. Over 16% of about the bank’s reorganization. the global economy. kets world-wide. It isn’t clear —Jason Douglas, the Office for National Statis-
debt instruments in Italy were He and Marcus Schenck, the fi- The government will sell only when the sale will take place. Max Colchester tics.
classified as nonperforming
last year, according to the
ECB. That figure is about 6%
in Spain and 2% in Germany.
One factor that doesn’t
make being a lender in It-
Puerto Rico Readies Debt-Exchange Proposal
aly any easier is the country’s BY AARON KURILOFF tween that amount and the had taken measures to reduce earlier this month after di-
dismal economic performance. face value of their bonds. expenses and increase revenue verting money to pay some
Beset by the financial and Puerto Rico plans to pro- The new securities would and needed help from credi- investors at the expense of
euro crises, Italian gross do- pose a debt exchange to in- be safer and more easily tors. others. That move prompted
mestic product per capita has vestors Friday, offering to traded than existing Puerto “I have instructed our team lawsuits from bond insurers.
hardly changed in 20 years. swap existing bonds for two Rico bonds, the person said. and our advisers to present to The proposal comes as of-
Spain also suffered greatly new types of securities to The first class would have in- our creditors’ advisers tomor- ficials work to stave off addi-
in the crisis years, but, by con- help the U.S. commonwealth terest payments beginning in row the Commonwealth’s pro- tional litigation and seek aid
trast, its precrisis boom was alleviate its debt burden. 2018, rising to 5% in 2021, posal for a voluntary debt ex- from the U.S. Congress, in-
so substantial that Spaniards Both classes of debt would and principal due starting in change,” he said. “It is our cluding access to municipal
today are much better off than delay payments, allowing five years. Payments on the every intent to protect the in- bankruptcy protections cur-
they were two decades ago. Puerto Rico time to make fis- second class could begin in tegrity of the process, and as rently denied the common-
ALVIN BAEZ/REUTERS
There is a market for non- cal adjustments and spur 10 years, with creditors re- such, we do not plan to nego- wealth. Democrats and the
performing loans, but there is economic growth, said a perceiving up to 25% annually of tiate the terms of our proposal Obama administration have
a gulf between what Italian son briefed in the matter. commonwealth revenue that publicly.” sought legislation that would
banks think they should get One would eventually pay in- exceeds current projections. Puerto Rico owes investors allow Puerto Rico to restruc-
for them and what investors terest at 5%, while the other Such an exchange would about $70 billion and is ture its debt and proposed
would be willing to pay, ac- would carry a value deter- help the commonwealth find struggling with a decade of bills to temporarily stay law- Puerto Rico Gov. Alejandro
cording to a report by analysts mined by the island’s fiscal room to implement fiscal economic stagnation and a suits against the island. Garcia Padilla
at Natixis. health. changes outlined in a revised steep population decline that House Speaker Paul Ryan (R.,
The report estimates that Bondholders would be of- economic plan released last last year led Gov. Garcia Pa- Wis.) has called for lawmak- to cover debt payments over
gap at 15% to 20%. fered the first class of debt in week, which could allow dilla to declare its debts un- ers to find a “responsible so- the next five years, even with
The deal is intended to help amounts based on the rela- creditors to eventually make payable. lution” to Puerto Rico’s crisis significant fiscal adjustments.
banks get nonperforming tive legal priority of their their principal investment The commonwealth began by the end of March. The commonwealth says it is
loans off their books, but the holdings, the person said. In- back, the person said. defaulting on bonds with its Puerto Rico last week said getting along by differing tax
sharp declines on Thursday investors would then receive Puerto Rico Gov. Alejandro weakest legal pledge in Au- new estimates show the com- refunds, stretching payments
dicate that investors aren’t enough of the second class to Garcia Padilla said in a state- gust and missed about $37 monwealth about $16 billion to suppliers and other ex-
convinced by the action. make up the difference be- ment that the commonwealth million in bond payments short of the money it needs traordinary measures.
C4 | Friday, January 29, 2016 * *** THE WALL STREET JOURNAL.
IN THE MARKETS
Shares Get Boost From Oil China 2 p.m.: Time
Dow rises 125 points,
but some health-care
get their first reading on
fourth-quarter gross domestic
For Stocks to Fall
product. Economists surveyed
firms’ weak earnings by The Wall Street Journal ex- In Chinese markets, the “2 Chinese stocks surged in the
pect that the U.S. economy ex- o’clock phenomenon” is back— first half of the year, as Beijing
hold back advances panded by 0.8% in the last with a twist. encouraged investors to bor-
three months of the year, a On eight of the 14 trading row to buy shares.
BY DAN STRUMPF slowdown from the 2% clip in days since Jan. 11, the bench- Some Chinese retail inves-
the third quarter. tors are more skeptical.
U.S. stocks rebounded as oil The yield on the 10-year By Shen Hong in Shanghai “I suspect that the govern-
prices climbed, but a selloff in Treasury note fell to 1.984%, and ment is too busy defending a
CHRIS RATCLIFFE/BLOOMBERG NEWS
health-care stocks and a mixed from 2.003% Wednesday. Bond Chao Deng in Hong Kong depreciating currency and has
bag of earnings reports kept prices rise as yields fall. largely given up on the stock
gains in check. The Stoxx Europe 600 fell mark Shanghai Composite In- market,” said Dai Yiyun, a
The Dow Jones Industrial 1.6% after a weak eurozone con- dex has moved more than 1% Shanghai-based retail investor.
Average rose 125.18 points, or sumer-confidence reading. in the last hour before the 3 Analysts said another likely
0.8%, to 16069.64. The S&P Early Friday, China’s Shang- p.m. close. On six of those factor behind the intense sell-
500 added 10.41, or 0.6%, to hai Composite Index was up eight occasions, the market ing in the last hour of trading
1893.36, while the Nasdaq 1.5%, while Hong Kong’s Hang headed south. is the way brokerage firms can
Composite Seng Index was up 0.7%. Japan’s WORLD The pattern is force clients to whom they
THURSDAY’S Index gained Facebook’s upbeat earnings lifted its shares 16% to a record $109.11. Nikkei Stock Average was down STOCKS reminding inves- have lent money to sell stocks
MARKETS 38.51, or 0.7% before a policy statement tors of last sum- at times the market is falling.
0.9%, to porting, according to FactSet. than a fall of 4.7% forecast by from the Bank of Japan. mer’s Chinese It is common for Chinese
4506.68. Upbeat earnings from Face- analysts on Dec. 31. If the drop equity-market meltdown, brokerages to impose these
Oil prices surged on hopes book lifted shares $14.66, or holds, it would be a third con- AUCTION RESULTS when heavy outbursts of after- so-called margin calls on their
Here are the results of Thursday's Treasury auction.
for production cuts, but com- 16%, to a record $109.11 and secutive quarter of year-over- All bids are awarded at a single price at the market- noon market activity also were clients at 2 p.m., in addition to
clearing yield. Rates are determined by the difference
ments from the Organization propped up the broader tech- year earnings declines. between that price and the face value. frequent, usually after a calm once in the morning session.
of the Petroleum Exporting nology sector. Microsoft On Friday, investors will SEVEN-YEAR NOTES morning and a long lunch The second margin call of the
Countries tempered that opti- gained 3.1% in after-hours shift attention to a decision on Applications $76,811,737,900 break, when stock markets are day tends to be more signifi-
Accepted bids $29,527,996,900
mism, causing crude to pare trading as it posted better- monetary policy from the Bank " noncompetitively $26,592,700
closed between 11:30 a.m. and cant because brokers base the
its gains. U.S.-traded crude than-expected adjusted earn- of Japan. Recent market turbu- " foreign noncompetitively $0 1 p.m. money they are requesting on
Auction price (rate) 99.940947
gained 2.8% to $33.22 a barrel. ings and revenue. Its shares lence has raised expectations (1.759%)
There is one key difference the current day’s trading.
Without further clarity on rose 84 cents, or 1.6%, to 52.06 that the BOJ could expand its Interest rate 1.750% from the summer, though: Still, the recent slump in
Bids at clearing yield accepted 60.94%
the course of oil prices or cen- in the regular session. asset-purchasing program. Cusip number 912828P38
Back then, shares often en- the market has made investors
tral-bank policy, stocks will Amazon.com fell 14% in af- Also Friday, investors will The notes, dated Feb. 1, 2016, mature on Jan. 31, 2023. joyed a late rally thanks to much less eager to borrow
have a difficult time making ter-hours trading after the re- Beijing’s obvious intervention, money to buy shares. China’s
strides higher, traders said. tailer reported its largest-ever as state-backed funds bought total margin debt has dropped
“Not knowing what the quarterly profit but results fell Treasury Sets Sales of $85 Billion in Bills stocks to prop up the mar- for 19 consecutive trading
[Federal Reserve] is going to short of expectations. Its ket. When this so-called na- days to 931.8 billion yuan
do with rates is going to tem- shares gained 52, or 8.9%, to The Treasury Department will 26-week bills, dated Feb. 4, 2016, tional team of funds was more ($141.6 billion) as of Wednes-
per any kind of significant 635.35 in the regular session. auction $85 billion in securities maturing Aug. 4, 2016. Cusip active in the market, it had a day, compared with a peak of
rally that we may see here,” Weak earnings from a hand- next week, comprising $48 billion number is 912796JD2. habit of snapping up stocks 2.27 trillion yuan in June, ac-
said Angel Mata, head of eq- ful of health-care companies in new debt and $37 billion in Tuesday: $18 billion in 52- after 2 p.m., analysts say. cording to data provider Wind
uity trading at Stifel Nicolaus. sent stocks in that sector slid- previously auctioned debt. Details week bills, dated Feb. 4, 2016, The tactic proved effective Information.
“We’re going to keep seeing ing. Abbott Laboratories lost (all with minimum denominations maturing Feb. 2, 2017. Cusip initially, as the authorities’ China’s stock market has
this type of up-and-down ac- 3.76, or 9.3%, to 36.71 after of $100): number is 912796JA8. stock-buying often lifted spir- long been dubbed a casino be-
tion in the market for the fore- posting lower profit in the last Monday: $37 billion in 13- Noncompetitive tenders for its among the 90 million Chi- cause of its volatility and de-
seeable future.” three months of the year. week bills, a reopening of an is- the bills must be received by 11 nese retail investors that dom- tachment from economic con-
Thursday marked the busi- Companies in the S&P 500 sue first sold on Nov. 5, 2015, a.m. Eastern time on the day inate trading. But when the ditions, but uncertainties such
est single day of earnings re- are on track to report a 5.8% maturing May 5, 2016. Cusip they are auctioned, and competi- national team didn’t come out as the elusive presence of the
ports for the season, with 51 drop in fourth-quarter earnings, number is 912796HN2. tive tenders must be received by to play, there were often sell- national team add suspense.
companies in the S&P 500 re- according to FactSet, deeper Also Monday, $30 billion in 11:30 a.m. offs just before markets closed. “I don’t think [it’s possible]
The Shanghai market to make a rational, informed
moved more than 1% in the call on how Shanghai will
CRUDE other large producers, such as

Russia, Iraq and Iran do the
same. Iraq this week said for
the first time that it was ready
shrink global oil output by
more than a million barrels a
day, which is roughly equal to
the current oversupply in the
and production. Another Gulf
official said such an offer
would be rejected by the Sau-
dis, “as they are looking for
last hour on 26 out of the 44
trading days during July and
August. On half of the days
when the market moved by
trade in the afternoon,” Mr.
Bowler said. —Yifan Xie
contributed to this article.
Continued from page C1 to consider output reductions market, according to analysts. something more credible that more than 1%, it rose.
ronments, but the group opted if other countries do, too. “Saudi Arabia remains com- the market will buy.” Amid a 25% slide in Shang- Rush Hour
not to take action in the past “We’ve had a rhetorical mitted to the balance of the Gulf officials said some hai stocks already this year, Confusion about Beijing's
two years. Saudi Arabia has shift to some extent this market and is willing to coop- countries are wary of trusting some investors have expected intervention tactics has prompted
said that if it cuts production, week,” said Helima Croft, chief erate with others to stabilize any pledges from Russia, the national team to appear investors to sell late in the day.
that would only allow higher- commodities strategist at RBC the market,” said a Gulf OPEC which promised cuts in the again. So far, they have been
cost producers in the U.S. and Capital Markets. “If you look official familiar with Saudi early 2000s that it never car- disappointed. Shanghai Composite Index
elsewhere to drill more wells. at the price response…what’s thinking. “All options will be ried out. “It’s really hard to guess Last hour before close
However, the financial pain considered and the doors are Another concern is that Iran what the national team is do- 3200
11.1 million
for large oil-producing nations open.” is expected to increase producing nowadays or whether it is
Jan. 11
has intensified this year, as Russian officials have long tion in the coming months, anywhere at all,” said Tangyue 3100
prices fell below $30 a barrel. said they wouldn’t cut produc- now that international sanc- Yanglin, an investment adviser
Some analysts warn they could The number of barrels a day of tion because of the difficulty tions are lifted. OPEC Secre- from Caishang Wealth, a fi- Lunch break
3000
fall to $20 a barrel or lower. crude and liquid fuels produced of halting and restarting pro- tary-General Abdalla Salem el- nancial advisory firm. “Some-
Currencies of commodity- by Russia last year duction in the freezing condi- Badri said at the group’s most times even if people think it is
2900 Jan. 26
producing countries have tions of the main producing recent meeting in December in the market, its buying
weakened, and government regions. that officials would wait to seems so weak that some
revenues have shrunk, forcing the downside to floating these Russian officials have indi- evaluate Iran’s return to the would call it the national div- 2800
nations to cut spending and ideas?” cated in the past that Russia’s market before meeting again. ing team,” Ms. Tangyue said.
Jan. 28
draw on reserves. Some mem- Russia produced 11.1 million contribution to any coordi- “I don’t know how easy it’s The government may have 2700
bers of OPEC, including Vene- barrels a day of crude oil and nated production cuts could be going to be for them to get to become more discreet in its
zuela and Nigeria, have for liquid fuels in 2015, and Saudi made through a natural dean agreement,” said Todd stock-market intervention this
months called on the group to Arabia pumped 10.1 million cline in output. Some oil exec- Gross, chief investment officer year in order to avoid sparking 2600
take action. barrels of crude a day, accord- utives and officials have at QERI LLC. If production cuts a flood of buying by retail in- 9:40 10 11 Noon 1 2 3
a.m. p.m.
Saudi Arabia and its Persian ing to the International Energy warned that higher-than-ex- were announced, he said, oil vestors, said Bill Bowler, sales
Gulf allies have said they Agency. If each country cut pected taxes this year could prices could rally to $50 a bar- trader at Forsyth Barr Asia Source: Thomson Reuters
would consider cuts only if production by 5%, that would lead to a drop in investment rel. Ltd. in Hong Kong. Last year, THE WALL STREET JOURNAL.
Biggest 1,000 Stocks | WSJ.com/stocks Stock

Net
Sym Close Chg Stock
Net
Sym Close Chg Stock
Net
Sym Close Chg Exchange-Traded Portfolios | WSJ.com/ETFresearch
CBSClB CBS 46.29 -1.05 ChinaTelecomADR CHA 45.81 1.67 DelphiAutomotive DLPH 64.14 -2.09 Largest 100 exchange-traded funds, latest session Closing Chg YTD
How to Read the Stock Tables CFIndustries CF 30.33 0.27 ChinaUnicomADR CHU 10.78 0.08 DeltaAir DAL 43.20 -1.52 ETF Symbol Price (%) (%)
The following explanations apply to NYSE, NYSE Arca, NYSE MKT and Nasdaq Stock Market listed
CGI Gp A GIB 42.56 1.63 ChipotleMex CMG 453.08 10.44 t DeutscheBank DB 17.76 -0.66 Thursday, January 28, 2016
MUB 111.41
securities. Prices are composite quotations that include primary market trades as well as trades
t CIT Grp
iShNatlAMTFrMuniBd 0.02 0.6
reported by Nasdaq OMX BXSM (formerly Boston), Chicago Stock Exchange, CBOE, National Stock CIT 29.14 -0.46 Chubb CB 109.52 1.42 DevonEnergy DVN 26.79 2.30 Closing Chg YTD
IWF 91.79
iShRussell1000Gwth 0.45 –7.7
Exchange, ISE and BATS. CMSEnergy CMS 37.87 0.50 ChunghwaTelecomADR CHT 30.49 -0.11 DiageoADR DEO 106.29 -0.13 ETF Symbol Price (%) (%)
IWB 104.53
iShRussell1000ETF 0.39 –7.7
The list comprises the 1,000 largest companies based on market capitalization. CNAFinancial CNA 32.53 0.32 Church&Dwight CHD 81.59 1.08 DicksSprtgGds DKS 37.77 -0.30 AlerianMLPETF AMLP 10.29 4.79–14.6 IWD 90.31
iShRussell1000Val 0.42 –7.7
Underlined quotations are those stocks with large changes in volume compared with the issue’s CNOOCADR CEO 95.16 2.30 Cigna CI 129.83 -1.61 s DigitalRealtyTrust DLR 79.47 2.43 CnsmrDiscSelSector XLY 73.31 1.28 –6.2 IWO 120.59
average trading volume. iShRussell2000Gwth –0.63–13.4
CRHADR CRH 25.86 -0.55 CimarexEngy XEC 88.88 4.36 t DiscoverFinSvcs DFS 44.83 -3.89 CnsStapleSelSector XLP 49.75 1.02 –1.5 IWM 99.69
Boldfaced quotations highlight those issues whose price changed by 5% or more if their previous iShRussell2000ETF –0.02–11.5
CSRA CSRA 25.89 -0.22 Citigroup C 40.39 -0.12 Disney DIS 93.53 -0.79 DBGoldDoubleLgETN DGP 19.99 –2.13 10.2 IWN 83.34
closing price was $2 or higher. iShRussell2000Val 0.68 –9.4
CVSHealth CVS 93.49 -0.85 CitizensFinancial CFG 21.74 0.53 DollarGeneral DG 73.40 -0.64 DBGoldDoubleShrt DZZ 7.98 2.70–10.0 IWV 110.65
Footnotes: listing standards vj-In bankruptcy or iShRussell3000ETF 0.44 –8.0
s-New 52-week high.
Cablevision CVC 31.61 0.58 Clorox CLX 126.03 1.39 DominionResources D 70.94 1.23 DeutscheXMSCIEAFE DBEF 25.34 0.04 –6.7 IWR 145.70
lf-Late filing receivership or being
CabotO&G COG 19.39 DPZ 112.20 1.14
iShRussellMid-Cap –0.18 –9.0
t-New 52-week low. q-Temporary exemption from reorganized under the -0.13 Coach COH 35.82 1.63 Dominos EnSelectSectorSPDR XLE 56.56 3.04 –6.2 IWS 63.11
iShRussellMCValue 0.25 –8.1
dd-Indicates loss in the most Nasdaq requirements. Bankruptcy Code, or securities Calpine CPN 14.42 0.17 CocaCola KO 42.57 0.48 DouglasEmmett DEI 28.84 0.17 FinSelSectorSPDR XLF 21.13 0.05–11.3 IJK 146.88
CamdenPropertyTr CPT 73.72 DOV 56.62 1.31
iShS&PMC400Growth –0.45 –8.7
recent four quarters. t-NYSE bankruptcy assumed by such companies. 0.04 Coca-ColaFemsaADR KOF 66.93 1.30 Dover FTDorseyWrightFoc5 20.27 –1.03–13.7 IVW 107.36
FV iShS&P500Growth 0.67 –7.3
FD-First day of trading. v-Trading halted on primary Cameco CCJ 11.92 0.39 CocaColaEnt CCE 46.04 0.57 DowChemical DOW 41.55 0.14 FstTrDJIntrnt FDN 65.38 2.20–12.4 IVE 82.11
h-Does not meet continued market. CameronIntl CAM 63.72 2.91 ColgatePalmolive CL 65.02 0.72 DrPepperSnap DPS 92.07 1.49
iShS&P500ValueETF 0.35 –7.3
GuggenheimSP500EqW RSP 70.39 0.07 –8.2 iSharesUSPreferred PFF 38.24 0.16 –1.6
s CampbellSoup CPB 55.73 0.73 ColumbiaPipeline CPGX 18.05 0.30 DrReddysLabADR RDY 43.28 -0.24
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and HealthCareSelSect XLV 65.40 –2.33 –9.2 iSh1-3YTreasuryBd SHY 84.81 ... 0.5
CIBC CM 64.17 1.99 Comerica CMA 34.19 0.72 DuPont DD 52.01 0.55
changes in the closing prices from 4 p.m. the previous day. IndSelSectorSPDR XLI 48.68 0.58 –8.2 iSh7-10YTreasuryBd IEF 108.53 0.13 2.8
CanNtlRlwy CNI 52.78 1.98 ConAgraFoods CAG 40.11 0.77 DukeEnergy DUK 73.47 1.06 CIU 107.44
iShIntermCredBd –0.08 0.1 iSh20+YTreasuryBd TLT 126.23 0.14 4.7
Thursday, January 28, 2016 Net Net CndNatRes CNQ 20.76 1.15 ConchoResources CXO 91.08 3.14 DukeRealty DRE 19.65 -0.02 CSJ 104.69
EMC 24.22 0.32 iSh1-3YCreditBond 0.01 0.1 iShChinaLarge-Cap FXI 30.22 1.48–14.4
Net Stock Sym Close Chg Stock Sym Close Chg CanPacRlwy CP 120.37 5.14 ConocoPhillips COP 38.02 1.81 EMC TIP 110.95
CanonADR CAJ 27.93 ED 69.15 0.82 ENIADR 29.00 0.64 iSharesTIPSBondETF 0.21 1.2 iShRussellMCGrowth IWP 82.72 –0.59–10.0
Stock Sym Close Chg 0.10 ConEd E
IEI 124.82
AEP AEP 59.45 1.26 BPADR BP 31.89 1.21 CapOneFnl COF 62.99 -0.31 ConstBrands A STZ 151.82 5.71 EOG Res EOG 68.63 2.56 iSh3-7YTreasuryBd 0.12 1.8 MktVectorsBiotech BBH 100.90 –3.47–20.5
t AmericanExpress AXP 52.88 -1.64 BRFADR BRFS 11.35 -0.01 iShCoreMSCIEAFEETF IEFA 50.37 0.34 –7.4 MktVectorsOilSvcs OIH 23.35 4.15–11.7
NYSE AmericanFinancial AFG 68.72 0.80 BTGroupADR BT 33.79 -0.22
CardinalHealth CAH 79.00 -2.75 ConstBrands B STZ/B 150.81 4.57 EQT EQT 59.95 -0.02
iShCoreMSCIEmgMk IEMG 36.21 1.49 –8.1 MktVectorsPharm PPH 59.36 –2.59 –9.1
Carlisle CSL 80.59 0.96 ContinentalRscs CLR 19.35 -0.23 EQTMidstreamPtrs EQM 66.35 3.02
ABBADR ABB 16.93 0.03 AmericanIntl AIG 54.71 0.17 BakerHughes BHI 43.12 2.29 iShCoreS&P500ETF IVV 190.11 0.54 –7.2 MktVectorsRetail RTH 72.80 0.91 –6.3
CarMax KMX 42.90 -1.74 Cooper COO 126.83 -1.77 EastmanChemical EMN 63.06 1.07
ADTCorp. ADT 28.59 -0.23 AmericanTowerREIT AMT 92.51 ... Ball BLL 66.90 0.80 iShCoreS&PMdCp IJH 127.46 0.06 –8.5 MktVectorsSemi SMH 47.76 –0.52–10.4
Carnival CCL 46.86 -1.19 Corning GLW 17.99 0.08 EatonCorp.PLC ETN 50.19 0.75
AES AES 9.16 0.08 s AmericanWaterWorks AWK 63.45 1.01 BancoBilbaoVizADR BBVA 6.31 -0.07 ECL 104.00 1.22 iShCoreS&PSmCpETF IJR 100.15 0.25 –9.0 PwrShrs QQQ QQQ 102.00 1.41 –8.8
Carnival ADR CUK 49.20 -1.36 CotyClA COTY 23.45 0.23 Ecolab
Aflac AFL 58.31 0.86 Amerigas APU 37.50 0.78 BancodeChileADR BCH 60.47 1.34 iShCoreUSAggBd AGG 109.03 0.08 0.9 PS SP500LoVoltlPrt SPLV 37.00 0.46 –4.1
Carters CRI 95.31 0.08 Credicorp BAP 97.98 3.61 EcopetrolADR EC 6.18 0.32
s AGLResources GAS 64.40 0.77 t AmerprsFncl AMP 86.92 -4.19 BcoSantChileADR BSAC 16.89 0.31 iShSelectDividend DVY 72.87 1.11 –3.0 SPDRBarclaysHiYdBd JNK 33.03 0.46 –2.6
Caterpillar CAT 61.08 2.76 CreditSuisseADR CS 17.32 -0.17 EdisonInt EIX 61.56 1.06
AT&T T 35.53 0.05 t AmeriSrcBrg ABC 87.29 -2.89 BancoSantanderADR SAN 4.12 -0.05 iSharesGold IAU 10.75 –1.01 5.1 SchwIntlEqty SCHF 25.60 0.43 –7.1
Celanese A CE 62.12 0.46 CrescentPntEnrg CPG 10.54 0.93 EdwardsLife EW 75.88 -2.02
t AbbottLabs ABT 36.71 -3.76 Ametek AME 46.18 -0.13 BanColombiaADR CIB 28.31 0.95 iShiBoxx$InvGrCpBd LQD 113.56 0.11 –0.4 SchwUS BrdMkt SCHB 45.12 0.37 –8.0
CemexADR CX 4.27 0.17 CrestwoodEquity CEQP 13.25 0.03 Embraer ADR ERJ 26.33 -0.86
AbbVie ABBV 55.85 -1.26 AmphenolClA APH 48.46 0.07 BankAm BAC 13.53 0.17 iShiBoxx$HYCpBd HYG 79.03 0.51 –1.9 SchwUS LrgCap SCHX 44.88 0.47 –7.6
CencosudADR CNCO 5.98 -0.04 CrownCastl CCI 84.81 1.62 EmersonElectric EMR 44.60 1.22
AccentureClA ACN 103.08 1.12 AnadarkoPetroleum APC 37.25 1.72 BkMntrl BMO 53.04 1.12 MBB 109.12 0.18 1.3 SPDR DJIA Tr DIA 160.51 0.76 –7.7
CenovusEnergy CVE 12.25 0.25 CrownHoldings CCK 44.93 -0.57 EmpresaNacADR EOC 37.59 0.98 iShMBSETF
AcuityBrands AYI 189.78 -4.50 AnheuserBuschADR BUD 122.30 0.40 BankNY Mellon BK 35.37 -0.06 iShMSCIACWIETF ACWI 51.75 0.54 –7.3 SPDR GldTr GLD 106.54 –1.07 5.0
Centene CNC 59.03 -2.81 CubeSmart CUBE 30.70 0.09 EnbridgePtnr EEP 17.61 1.21
AdvanceAuto AAP 148.56 -2.96 AnnalyCap NLY 9.25 0.08 BkNovaScotia BNS 40.15 1.68 SCZ 46.08 0.72 –7.7 SPDR S&PMdCpTr MDY 232.34 0.04 –8.5
CenterPointEnergy CNP 17.54 0.23 Cummins CMI 86.95 1.74 Enbridge ENB 33.05 0.88 iSharesMSCIEAFESC
AdvSemiEnggADR ASX 5.15 -0.06 AnteroResources AR 26.00 0.50 BarclaysADR BCS 10.37 ... ECA 4.38 0.59 iSharesMSCIEAFEETF EFA 54.52 0.29 –7.2 SPDR S&P 500 SPY 189.11 0.52 –7.2
CenturyLink CTL 24.82 0.19 DDR Corp DDR 16.42 -0.07 Encana
AegonADR AEG 5.61 0.05 Anthem ANTM 126.42 -4.81 Bard CR BCR 178.36 -4.93 EEM 29.61 1.58 –8.0 SPDR S&P Div SDY 70.48 0.73 –4.2
Chevron CVX 85.92 2.63 DTEEnergy DTE 83.25 1.25 EngyTrnsfrEqty ETE 8.78 -0.07 iShMSCIEmgMarkets
t AerCapHoldings AER 28.84 -1.44 Aon AON 86.09 0.48 BarrickGold ABX 9.66 -0.18 DHR 84.47 0.22 EnergyTransfer ETP 30.13 1.88 EZU 32.77 0.09 –6.5 TechSelectSector XLK 39.98 1.29 –6.7
ChinaEasternAirADR CEA 24.16 -0.36 Danaher iShMSCIEurozoneETF
Aetna AET 98.79 -2.90 Apache APA 40.60 1.97 Baxalta BXLT 39.85 -0.27 t ChinaLifeInsADR LFC 11.66 DRI 63.26 0.67 Enerplus ERF 3.15 0.34 EWG 24.16 –0.41 –7.8 UtilitiesSelSector XLU 44.53 1.60 2.9
-0.18 Darden iShMSCIGermanyETF
AffiliatedManagers AMG 128.78 -2.32 ApartmtInv AIV 38.11 -0.13 BaxterIntl BAX 35.70 -0.80 EWJ 11.23 VangdInfoTch VGT 98.52 1.11 –9.0
ChinaMobileADR CHL 53.88 0.31 DaVitaHlthcrPtrs DVA 64.45 -1.27 EnersisADR ENI 11.35 0.15 iShMSCIJapanETF 0.18 –7.3
AgilentTechs A 36.11 -0.94 ApolloGlobalMgmtA APO 13.43 -0.17 BectonDickinson BDX 142.28 -3.76 ChinaPetroleumADR SNP 54.19 DE 74.81 1.18 EnLinkMidstream ENLK 12.15 0.24 VangdHlthCr VHT 118.49 –2.49–10.8
0.31 Deere iShMSCIUSAMinVol USMV 40.28 0.14 –3.7
AgnicoEagleMines AEM 28.97 0.02 Aptargroup ATR 70.67 0.42 Berkley WRB 48.81 0.47 VangdSmCapValue VBR 89.62 0.30 –9.3
ChinaSoAirlinesADR ZNH 29.08 0.15 s DelhaizeGroupADR DEG 26.13 1.00 Continued on Page C7 iShNasdaqBiotech IBB 263.47 –3.63–22.1
Agrium AGU 86.96 1.57 AquaAmerica WTR 30.57 0.47 BerkHathwy A BRK/A 188300-791.00 VangdDivApp VIG 73.92 0.39 –4.9
AirProducts&Chems APD 119.01 0.94 Aramark ARMK 31.80 0.17 BerkHathwy B BRK/B 126.01 0.82 VanguardFTSEDevMk VEA 34.10 0.38 –7.1
s Airgas ARG 139.56 0.96 ArcelorMittalADR MT 4.01 0.21 BestBuy BBY 26.97 -0.30 Amount Payable / VanguardFTSEEmgMk VWO 29.78 1.60 –9.0
AlaskaAirGroup ALK 68.57 -1.45
Albemarle ALB 51.76 0.83
ArcherDan ADM 34.70
ArrowElec ARW 49.31
0.96
0.13
BlackKnightFinSvcs BKFS 29.38 0.15
BlackRock BLK 299.17 -2.95
Dividend Changes Company Symbol Yld % New/Old Frq Record VanguardFTSEEurope
VangdAllWldxUS
VGK 46.37
VEU 40.11
0.28 –7.0
0.55 –7.6
Sprague Resources SRLP 9.9 .5175 /.5025 Q Feb12 /Feb09
AlcatelLucentADR ALU 3.88 -0.05 t Ashland ASH 92.19 -2.13 BlackstoneGroup BX 25.12 -0.48 Dividend announcements from January 28. Timberland Bancorp TSBK 2.2 .08 /.07 Q Feb26 /Feb12 VangdGrowth VUG 97.86 0.53 –8.0
Alcoa AA 7.00 0.04 Assurant AIZ 79.45 0.50 BlockHR HRB 32.99 0.26 VangdHiDivYld VYM 63.33 0.67 –5.1
Unitil Corp UTL 3.7 .355 /.35 Q Feb26 /Feb12
AlexREEq ARE 77.66 -0.16 AstraZenecaADR AZN 31.23 -0.34 BdwlkPipePtnr BWP 10.33 -0.32 Amount Payable / VngdInter-Term BIV 84.30 0.12 1.5
AlibabaGroupADR BABA 66.92 -2.62 s AtmosEnergy ATO 67.19 2.06 Boeing BA 118.01 1.43 Company Symbol Yld % New/Old Frq Record Funds and investment companies VangIntrCorpBd VCIT 84.06 0.13 –0.0
Alleghany Y 459.54 7.32 Autoliv ALV 113.44 -2.30 BorgWarner BWA 28.47 -0.52 Credit Suisse Income Fnd CIK 9.8 .022 M Feb16 /Feb09 VangdLgCap VV 86.40 0.44 –7.6
Allegion ALLE 59.22 -0.51 t AutoNation AN 41.53 -2.53 BostonProperties BXP 115.44 -3.70 Increased VangdMdCap VO 108.11 –0.27–10.0
Black Hills BKH 3.3 .42 /.405 Q Mar01 /Feb16 Dreyfus Hi Yld Fd DHF 12.1 .029 M Feb25 /Feb10
Allergan AGN 281.76 -8.26 AutoZone AZO 747.55 3.26 BosSci BSX 16.90 -0.32 VangdReit VNQ 75.44 –0.76 –5.4
t AllianceData ADS 199.00-47.80 Avalonbay AVB 170.74 -4.85 BristolMyers BMY 61.16 -0.55 Booz Allen Hamilton Hldg BAH 1.9 .15 /.13 Q Feb29 /Feb10 Stocks VanguardS&P500 VOO 173.36 0.55 –7.3
AllncBrnstnHldg AB 18.24 -0.43 Avangrid AGR 37.80 ... BrixmorPropertyGrp BRX 26.01 0.17 Boston Private Financial BPFH 3.6 .10 /.09 Q Feb19 /Feb10 Platinum Group Metals PLG 1:10 /Jan28 VangdShrtTrm BSV 80.11 0.07 0.7
AlliantEnergy LNT 63.63 1.35 AveryDennison AVY 59.35 -0.35 BdridgeFnlSol BR 52.37 0.16 Calif Water Svc Grp CWT 2.7 .1725 /.1675 Q Feb19 /Feb08 VangShrtCorpBd VCSH 79.04 0.04 0.1
Allstate ALL 59.22 0.81 Aviva ADR AV 13.38 0.02 BrookfieldMgt BAM 29.66 0.64 Ethan Allen ETH 2.1 .17 /.14 Q Apr25 /Apr11 Foreign VangdSmCap VB 99.13 –0.14–10.4
AllyFinancial ALLY 15.35 -0.57 Avnet AVT 38.82 -0.53 BrookfieldInfr BIP 34.95 0.97 First Defiance Fincl FDEF 2.2 .22 /.20 Q Feb26 /Feb19 Golar LNG Partners GMLP 16.7 .5775 Q Feb12 /Feb05 VangdTtlBndMkt BND 81.49 0.07 0.9
AltriaGroup MO 59.63 0.67 AxaltaCoatingSys AXTA 23.13 -0.29 BrownFormanClA BF/A 103.30 1.72 Las Vegas Sands LVS 6.1 .72 /.65 Q Mar31 /Mar22 VanguardTtlIntlStk VXUS 41.82 0.65 –7.3
AlumofChinaADR ACH 7.26 0.11 AxisCapital AXS 53.24 0.22 BrownFormanClB BF/B 94.81 2.06 Marine Products MPX 2.4 .06 /.04 Q Mar10 /Feb10 Special VangdTtlStock VTI 95.95 0.40 –8.0
AmbevADR ABEV 4.40 0.07 BB&T BBT 31.91 0.26 BuckeyePartners BPL 57.25 1.70 MarketAxess Holdings MKTX 0.7 .26 /.20 Q Feb25 /Feb11 Columbia Banking System COLB 2.4 .20 Feb24 /Feb10 VangdTotlWrld VT 53.02 0.34 –8.0
Ameren AEE 43.85 0.65 BCE BCE 39.67 0.67 Bunge BG 60.08 1.47 McGraw Hill Financial MHFI 1.6 .36 /.33 Q Mar10 /Feb25 Fox Chase Bancorp FXCB 2.9 .14 Feb25 /Feb11 VangdValue VTV 75.65 0.42 –7.2
AmericaMovilADR AMX 13.52 0.13 BHPBillitonADR BHP 21.79 0.44 CBRE Group CBG 27.10 -0.64 Progressive Corp PGR 2.2 .8882 /.6862 A Feb12 /Feb03 KEY: A: annual; c: corrected; M: monthly; Q: quarterly; r: revised; SA: WisdomTreeEurope HEDJ 50.66 –0.33 –5.9
AmCampus ACC 40.63 -0.03 BHPBillitonADR BBL 19.63 0.64 CBSClA CBS/A 50.44 -1.81 SJW Corp SJW 2.5 .2025 /.195 Q Mar01 /Feb08 semiannual; S2:1: stock split and ratio; SO: spin-off. WisdomTreeJapanHdg DXJ 45.76 0.33 –8.6
THE WALL STREET JOURNAL. Friday, January 29, 2016 | C5
MARKETS DIGEST
Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
16069.64 s 125.18, or 0.79% Trailing P/E ratio * 15.76 16.57 1893.36 s 10.41, or 0.55% Trailing P/E ratio * 20.69 19.71 4506.68 s 38.51, or 0.86% Trailing P/E ratio * 20.95 24.25
High, low, open and close for each P/E estimate * 14.65 15.58 High, low, open and close for each P/E estimate * 15.38 17.01 High, low, open and close for each P/E estimate * 16.92 18.05
trading day of the past three months. Dividend yield 2.78 2.50 trading day of the past three months. Dividend yield 2.36 1.97 trading day of the past three months. Dividend yield 1.28 1.27
All-time high 18312.39, 05/19/15 All-time high: 2130.82, 05/21/15 All-time high: 5218.86, 07/20/15
Current divisor 0.14602128057775

18000 2100 5170
17500 2050 5020
17000 2000 4870
Session high
65-day moving average
DOWN UP 16500 1950 4720
t
Session open Close

65-day moving average 65-day moving average
Close Open
t
16000 1900 4570
Session low
15500 1850 4420
Bars measure the point change from session's open

15000 1800 4270
Oct. Nov. Dec. Jan. Oct. Nov. Dec. Jan. Oct. Nov. Dec. Jan.
Major U.S. Stock-Market Indexes Late Trading Trading Diary

Latest 52-Week Range % chg Most-active and biggest movers among NYSE, NYSE Arca, NYSE MKT Volume, Advancers, Decliners
High Low Close Net chg % chg High Low % chg YTD 3-yr. ann. and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic NYSE NYSE MKT
Dow Jones trading services, securities dealers and regional exchanges. Minimum Total volume* 1,096,933,069 7,969,163
Industrial Average 16102.14 15863.72 16069.64 125.18 0.79 18312.39 15666.44 -7.7 -7.8 5.0 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 614,375,165 5,237,286
Transportation Avg 6789.75 6644.17 6701.97 -54.15 -0.80 9178.48 6625.53 -24.3 -10.7 4.5 Most-active issues in late trading Decl. volume* 468,872,814 2,628,187
Utility Average 602.85 586.27 599.19 9.69 1.64 652.11 541.97 -8.1 3.7 8.5 Volume After Hours Issues traded 3,213 367
Company Symbol (000) Last Net chg % chg High Low Advances 2,104 219
Total Stock Market 19503.30 19203.33 19382.34 78.89 0.41 22287.78 19071.84 -8.1 -8.1 7.4
SPDR S&P N Amer Nat Rscs NANR 26,996.4 23.26 -0.07 -0.30 23.26 23.26 Declines 1,047 133
Barron's 400 468.58 461.60 464.18 -0.24 -0.05 586.75 460.46 -13.2 -10.1 6.0
Alerian MLP ETF AMLP 14,975.2 10.29 … unch. 10.29 10.29 Unchanged 62 15
Nasdaq Stock Market Mkt Vectors Gold Miners GDX 8,813.0 13.86 … unch. 14.21 13.86 New highs 31 3
Nasdaq Composite 4533.81 4447.50 4506.68 38.51 0.86 5218.86 4468.17 -3.8 -10.0 12.6 Microsoft MSFT 8,345.5 53.69 1.64 3.14 56.37 51.18 New lows 110 7
4197.48 4116.50 57.20 4719.05 4016.32 -8.9 Closing tick 334 53
Nasdaq 100 4186.06 1.39 0.1 15.1 SPDR S&P 500 SPY 7,153.9 188.47 -0.64 -0.34 207.75 183.79
Closing Arms† 1.70 0.89
iShares MSCI Emg Markets EEM 3,537.3 29.61 … unch. 29.74 29.03
Standard & Poor's Block trades* 5,540 53
Amazon.com AMZN 3,449.5 549.50 -85.85 -13.51 681.83 540.00
500 Index 1902.96 1873.65 1893.36 10.41 0.55 2130.82 1859.33 -6.3 -7.4 8.1 Nasdaq NYSE Arca
iSh MSCI United Kingdom EWU 2,244.6 15.03 … unch. 15.03 15.03
MidCap 400 1289.42 1270.42 1276.53 -0.05 0.004 1549.44 1254.93 -12.3 -8.7 5.2 Total volume* 2,299,031,295 404,532,534
SmallCap 600 615.83 609.05 610.51 1.65 0.27 742.13 601.59 -10.7 -9.1 6.3 Percentage gainers… Adv. volume* 1,123,954,285 299,145,389
Decl. volume* 1,154,979,718 96,128,179
Other Indexes Gigamon Inc. GIMO 16.2 25.80 3.70 16.74 26.00 22.00
Issues traded 2,926 1,423
Russell 2000 1014.48 1000.38 1003.27 0.53 0.05 1295.80 994.87 -15.7 -11.7 3.4 QLogic QLGC 23.8 13.40 1.35 11.20 13.53 11.95
Advances 1,495 947
NYSE Composite 9463.20 9324.15 9397.79 24.01 0.26 11239.66 9156.84 -12.1 -7.4 1.9 Manitowoc MTW 52.3 15.50 1.49 10.64 15.50 14.01 Declines 1,334 463
Value Line 406.04 399.38 401.48 0.19 0.05 522.42 392.58 -18.6 -9.9 0.7 Hologic HOLX 91.4 35.89 2.82 8.53 35.89 32.95 Unchanged 97 13
NYSE Arca Biotech 3020.48 2838.50 2866.32 -134.25 -4.47 4431.87 2866.32 -22.7 -24.8 19.6
Guess GES 26.1 19.02 1.46 8.31 19.02 17.56 New highs 15 2
New lows 175 21
NYSE Arca Pharma 511.39 497.06 500.72 -10.43 -2.04 605.94 500.72 -9.3 -7.5 8.5 ...And losers
Closing tick 35 51
KBW Bank 62.86 61.66 62.18 0.41 0.67 80.41 60.10 -8.2 -14.9 4.9 Amazon.com AMZN 3,449.5 549.50 -85.85 -13.51 681.83 540.00
Closing Arms† 1.15 0.69
PHLX§ Gold/Silver 45.68 43.94 44.71 -0.95 -2.07 81.03 38.84 -42.0 -1.3 -33.1 Aspen Technology AZPN 11.7 28.10 -4.31 -13.30 33.07 27.40 Block trades* 7,536 1,491
PHLX§ Oil Service 144.27 139.12 140.86 2.76 2.00 224.32 128.61 -22.6 -10.7 -17.0 Quality Systems QSII 41.7 14.80 -1.47 -9.04 16.64 14.25 * Primary market NYSE, NYSE MKT NYSE Arca only.
PHLX§ Semiconductor 593.96 582.33 586.85 -1.83 -0.31 746.08 559.59 -12.0 -11.6 12.1 Electronic Arts EA 333.0 64.25 -5.54 -7.94 70.56 61.27 †(TRIN) A comparison of the number of advancing and declining
23.81 21.90 -0.69 40.74 11.95 23.1 issues with the volume of shares rising and falling. An
CBOE Volatility 22.42 -2.99 19.5 18.2 Orbital ATK OA 5.8 80.00 -6.80 -7.83 86.80 80.00 Arms of less than 1 indicates buying demand; above 1
Philadelphia Stock Exchange Sources: SIX Financial Information; WSJ Market Data Group indicates selling pressure.
International Stock Indexes Percentage Gainers... Percentage Losers

Latest YTD Latest Session 52-Week Latest Session 52-Week
Region/Country Index Close Net chg % chg % chg Company Symbol Close Net chg % chg High Low % chg Company Symbol Close Net chg % chg High Low % chg
World The Global Dow 2136.70 0.17 0.01 –8.5 SunCoke Energy SXC 3.51 1.21 52.61 18.40 2.05 -77.4 OSI Systems OSIS 52.02 -24.23 -31.78 96.75 48.19 -26.6
The Global Dow Euro 1839.13 –11.45 –0.62 –9.2 Neos Therapeutics NEOS 13.38 3.96 42.04 28.99 8.91 ... Attunity ATTU 6.52 -2.99 -31.44 16.25 5.47 -28.0
DJ Global Index 282.95 0.34 0.12 –8.1 Under Armour A UA 84.07 15.49 22.59 105.89 63.23 15.5 Silicon Graphics Intl SGI 5.32 -2.29 -30.09 11.82 3.88 -49.9
World DJ Global ex U.S. 192.69 –0.39 –0.20 –8.3 CIFC CIFC 5.37 0.98 22.32 8.85 4.00 -37.6 Extreme Networks EXTR 2.90 -1.02 -26.02 4.55 2.11 -4.6
Nabriva Therapeutics ADR NBRV 8.30 1.46 21.26 17.48 6.61 ... Datawatch Corp DWCH 3.57 -1.21 -25.31 8.35 3.10 -41.3
Americas DJ Americas 449.29 2.33 0.52 –7.8
Sao Paulo Bovespa 38630.19 0.66 –10.9 SunRun RUN 10.05 1.71 20.50 14.95 6.36 ... World Acceptance WRLD 28.88 -8.84 -23.44 96.23 25.30 -60.2
Brazil 253.82
12591.93 1.73 –3.2
Costamare CMRE 8.13 1.35 19.91 20.50 6.01 -52.5 H&E Equipment Services HEES 11.25 -3.17 -21.98 28.22 11.12 -37.5
Canada S&P/TSX Comp 214.16
0.67 VelocityShares 3x Lg UWTI 2.50 0.39 18.48 43.20 1.41 -90.0 Global Partners GLP 15.38 -4.12 -21.13 42.74 13.11 -60.6
Mexico IPC All-Share 42393.02 283.13 –1.4
1.32 Stratus Properties STRS 23.46 3.50 17.54 25.00 11.01 73.5 NetScout Systems NTCT 22.09 -5.91 -21.11 45.53 19.57 -37.7
Chile Santiago IPSA 2866.10 37.33 –2.6
MicroStrategy MSTR 167.26 24.87 17.47 226.48 141.01 3.3 First Cash Financial Svcs FCFS 30.22 -7.42 -19.71 52.07 29.64 -39.8
Europe Stoxx Europe 600 334.89 –5.35 –1.57 –8.5
Cellular Biomedicine Grp CBMG 12.50 1.84 17.26 49.00 10.44 -21.0 Optical Cable OCC 2.33 -0.56 -19.38 5.52 2.10 -55.4
Euro zone Euro Stoxx 315.78 –6.13 –1.90 –8.5
DXN Dly NatGas 3X Bl GASL 3.48 0.51 17.17 247.00 1.53 -97.4 Alliance Data Systems ADS 199.00 -47.80 -19.37 312.00 197.83 -32.1
Belgium Bel-20 3409.37 –51.72 –1.49 –7.9
Independent Bank Group IBTX 33.07 4.82 17.06 46.66 27.29 3.4 United Rentals URI 45.58 -10.26 -18.37 105.83 44.60 -47.2
France CAC 40 4322.16 –58.20 –1.33 –6.8 Cirrus Logic CRUS 32.54 4.58 16.38 38.20 24.57 24.5 VelocityShares 3x Inv DWTI 241.20 -45.10 -15.75 484.23 56.32 28.2
Germany DAX 9639.59 –241.23 –2.44 –10.3 Encana ECA 4.38 0.59 15.57 14.73 3.00 -63.7 Celestica Inc CLS 8.29 -1.54 -15.67 13.49 8.07 -25.8
Israel Tel Aviv 1452.17 4.32 0.30 –5.0
Italy FTSE MIB 18189.95 –658.08 –3.49 –15.1
Netherlands AEX 420.10 –4.31 –1.02 –4.9 Most Active Stocks Volume Movers Ranked by change from 65-day average*
Spain IBEX 35 8590.60 –150.40 –1.72 –10.0 Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
Sweden SX All Share 462.84 –8.21 –1.74 –8.4
Switzerland Swiss Market 8153.27 –169.41 –2.04 –7.5 VelocityShares 3x Lg UWTI 140,013 179.5 2.50 18.48 43.20 1.41 iSh Curr Hdg MSCI SK HEWY 1,301 4716 22.28 0.19 25.45 21.70
5931.78 –0.98 –5.0 SPDR S&P 500 SPY 136,358 0.1 189.11 0.52 213.78 181.02 Neos Therapeutics NEOS 4,133 3903 13.38 42.04 28.99 8.91
U.K. FTSE 100 –58.59
Bank Of America BAC 110,019 16.7 13.53 1.27 18.48 12.94 Tuttle Tactical Mgmt US TUTT 415 2623 21.75 0.32 25.81 20.87
Asia-Pacific DJ Asia-Pacific TSM 1260.62 –0.33 –0.03 –9.3 Facebook Cl A FB 106,254 287.9 109.11 15.52 110.65 72.00 OSI Systems OSIS 3,512 1906 52.02 -31.78 96.75 48.19
Australia S&P/ASX 200 4976.20 29.80 0.60 –6.0 iPath SP 500 VIX Sht Tm VXX 85,134 18.5 25.15 -3.34 37.35 15.48 Fisher Enhanced Big Cap FBG 160 1578 52.70 0.80 65.67 45.00
China Shanghai Composite 2655.66 –79.90 –2.92 –25.0
iShares MSCI Emg Markets EEM 81,178 23.0 29.61 1.58 44.19 27.61 Deep Value ETF DVP 1,838 1443 19.73 1.49 26.81 14.02
Hong Kong Hang Seng 19195.83 143.38 0.75 –12.4
Ford Motor F 75,452 121.0 11.71 -1.18 16.74 10.44 ServiceNow NOW 19,675 1276 63.57 -15.66 91.28 57.67
India S&P BSE Sensex 24469.57 –22.82 –0.09 –6.3
Freeport-McMoRan FCX 66,247 37.1 4.42 -4.95 23.97 3.52 Alerian Engy Infr ENFR 184 1166 16.23 3.04 28.54 13.51
Japan Nikkei Stock Avg 17041.45 –122.47 –0.71 –10.5
Finl Select Sector SPDR XLF 64,490 31.8 21.13 0.05 25.62 18.52 iShares US Broker-Dealers IAI 964 1152 35.23 -0.03 45.60 28.77
Singapore Straits Times 2562.45 16.27 0.64 –11.1 Oasis Petroleum OAS 58,143 398.3 4.79 -9.96 19.63 3.40 Attunity ATTU 718 1053 6.52 -31.44 16.25 5.47
South Korea Kospi 1906.94 9.07 0.48 –2.8
* Volumes of 100,000 shares or more are rounded to the nearest thousand * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
Taiwan Weighted 7905.10 55.27 0.70 –5.2 5,000 shares =Has traded fewer than 65 days
Sources: SIX Financial Information; WSJ Market Data Group
Consumer Rates and Returns to Investor Benchmark

Treasury Yields
yield curve Forex Race Currencies
and
Yield toRates
maturity of current bills, Yen, euro vs. dollar; dollar vs. U.S.-dollar foreign-exchange rates in late New York trading
U.S. consumer rates Selected rates notes and bonds major U.S. trading partners
Money market accounts US$vs, US$vs,
A consumer rate against its Thurs YTDchg Thurs YTDchg
benchmark over the past year 5.00% Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%)
Bankrate.com avg†: 0.27% 10%
4.00 WSJ Dollar index Americas Thailand baht .02790 35.840 –0.5
0.75%
s
Capital One 360 5 Vietnam dong .00004493 22259 0.5
1.00% Glen Allen, VA Argentina peso .0723 13.8325 6.9
855-464-6335 3.00 Europe
Money market 0 Brazil real .2457 4.0699 2.8
account yields American Express Bank, FSB 0.90% Canada dollar .7128 1.4029 1.4 Czech Rep. koruna .04049 24.700 –0.8
0.50 2.00
t New York, NY 866-297-0747 –5 Chile peso .001406 711.10 0.4 Denmark krone .1466 6.8215 –0.7
s Colombia peso .0003047 3282.02 3.4 Euro area euro 1.0940 .9141 –0.7
0.00 Ally Bank 1.00% Thursday 1.00 s
t
t –10 Yen Ecuador US dollar 1 1 unch Hungary forint .003490 286.51 –1.4
t
Midvale, UT 877-315-2559 One year ago Euro

Federal-funds 0.00 Mexico peso .0546 18.3230 6.5 Iceland krona .007704 129.80 –0.3
–0.50 CIT Bank 1.00% –15
target rate Peru new sol .2886 3.466 1.5 Norway krone .1161 8.6146 –2.6
1 3 6 1 2 3 5 710 30
Salt Lake City, UT 855-462-2652 2015 ‘16 Uruguay peso .03216 31.0900 3.9 Poland zloty .2453 4.0772 3.9
–1.00 month(s) years Venezuela b. fuerte .158603 6.3051 unch Russia ruble .01312 76.241 6.0
FMAM J J A S O N D J EverBank 1.11%
maturity Asia-Pacific Sweden krona .1175 8.5075 0.7
2015 Jacksonville, FL 866-242-1924 Switzerland franc .9864 1.0138 1.2
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Australian dollar .7084 1.4116 2.9
Turkey lira .3368 2.9693 1.8
China yuan .1522 6.5721 1.2
Yield/Rate (%) 52-Week Range (%) 3-yr chg Ukraine hryvnia .0402 24.8990 3.8
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts) Hong Kong dollar .1283 7.7930 0.5
UK pound 1.4362 .6963 2.6
India rupee .01469 68.053 2.8
Federal-funds rate target 0.25-0.5 0.25-0.5 0.00 l 0.50 0.25 Corporate Borrowing Rates and Yields Indonesia rupiah .0000723 13825 –0.1 Middle East/Africa
Prime rate* 3.50 3.50 3.25 l 3.50 0.25 Yield (%) 52-Week Total Return (%) Japan yen .008416 118.82 –1.2 Bahrain dinar 2.6563 .3765 –0.2
Bond total return index Close Last Week ago High Low 52-wk 3-yr Kazakhstan tenge .002665 375.30 10.8 Egypt pound .1277 7.8301 unch
Libor, 3-month 0.62 0.62 0.25 l 0.62 0.31
Macau pataca .1246 8.0284 0.3 Israel shekel .2532 3.9490 1.5
Money market, annual yield 0.27 0.27 0.24 l 0.42 -0.23 Treasury, Ryan ALM 1439.682 1.629 1.652 1.957 1.305 –0.123 2.544
Malaysia ringgit .2398 4.1693 –3.1 Kuwait dinar 3.2950 .3035 unch
Five-year CD, annual yield 1.34 1.34 1.33 l 1.53 0.02 10-yr Treasury, Ryan ALM 1733.803 1.984 2.021 2.480 1.669 –1.990 2.828 New Zealand dollar .6480 1.5432 5.4 Oman sul rial 2.5977 .3850 unch
30-year mortgage, fixed† 3.75 3.76 3.72 l 4.22 0.06 DJ Corporate 342.160 3.398 3.412 3.462 2.633 –2.326 2.277 Pakistan rupee .00954 104.850 unch Qatar rial .2747 3.640 –0.1
15-year mortgage, fixed† 2.99 3.00 2.94 l 3.42 -0.05 Aggregate, Barclays Capital 1846.660 2.400 2.430 2.630 1.920 –0.226 2.044 Philippines peso .0209 47.765 1.9 Saudi Arabia riyal .2666 3.7505 –0.1
Jumbo mortgages, $417,000-plus† 4.38 4.37 4.00 l 4.97 0.20 Singapore dollar .7003 1.4279 0.7 South Africa rand .0617 16.2044 4.7
High Yield 100, Merrill Lynch 2343.149 8.067 8.507 8.696 5.016 –6.492 0.372 South Korea won .0008280 1207.74 2.7
Five-year adj mortgage (ARM)† 3.25 3.23 3.14 l 4.00 0.26 Close Net Chg % Chg YTD%Chg
Fixed-Rate MBS, Barclays 1928.840 2.560 2.600 2.900 2.280 1.979 2.594 Sri Lanka rupee .0069512 143.86 –0.3
New-car loan, 48-month 3.20 3.18 2.71 l 3.33 0.55 Taiwan dollar .02978 33.582 2.0 WSJ Dollar Index 90.93 –0.43–0.47 0.84
Muni Master, Merrill 503.942 1.602 1.591 2.099 1.475 2.353 2.867
HELOC, $30,000 5.01 4.98 4.24 l 5.01 0.41
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest EMBI Global, J.P. Morgan 667.624 6.856 7.081 7.128 5.679 0.460 –0.089 Sources: Tullett Prebon, WSJ Market Data Group
banks.† Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Commodities Thursday 52-Week YTD
Pricing trends on someClose
raw materials, or commodities
Net chg % Chg High Low % Chg % chg
DJ Commodity 442.46 0.49 0.11 584.70 420.23 -15.85 -2.50

ONLINE
WSJ
Reuters-Jefferies CRB 165.22 1.04 0.63 231.77 156.32 -22.30 -6.27
Crude oil, $ per barrel 33.22 0.92 2.85 61.43 26.55 -25.40 -10.31
Real-time U.S. stock quotes are available on WSJ.com. Track most-active stocks, new highs/lows, mutual funds and
.COM Natural gas, $/MMBtu 2.182 0.025 1.16 3.02 1.76 -19.75 -6.63
ETFs. Plus, get deeper money-flows data and email delivery of key stock-market data. All are available free at
Gold, $ per troy oz. 1115.60 -0.20 -0.02 1278.50 1050.80 -11.08 5.22
WSJMarkets.com
NEW HIGHS AND LOWS

The following explanations apply to the New York Stock Exchange, NYSE 52-Wk % 52-Wk % 52-Wk % 52-Wk % 52-Wk % 52-Wk % 52-Wk %
Arca, NYSE MKT and Nasdaq Stock Market stocks that hit a new 52- Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg
week intraday high or low in the latest session.
% CHG-Daily percentage change from the previous trading session. HarleyDavidson HOG 36.36 3.8 SantanderCnsmrUSA SC 10.16 -4.7 HC2Holdings HCHC 3.35 -2.6 AduroBiotech ADRO 14.59 -7.8 Chiasma CHMA 7.96 -2.8 FreqElec FEIM 8.51 -3.6
Thursday, January 28, 2016
HarmanIntlInds HAR 66.38 -13.4 SaratogaInvestment SAR 13.43 1.4 NYSE Arca lows - 21 Medgenics MDGN 3.45 -4.1 AegerionPharm AEGR 6.20 -6.8 ChinaAutoSystems CAAS 3.86 -1.5 Freshpet FRPT 5.85 -3.8
HHGregg HGG 1.75 -7.4 SealedAir SEE 38.02 -3.6 ALPSMedBreak SBIO 22.19 -4.0 MilestoneSci MLSS 1.75 0.3 AkamaiTechnologies AKAM 43.28 -2.0 ColumbusMcKinnon CMCO 12.62 2.1 GWPharmADR GWPH 50.86 -5.6
52-Wk % 52-Wk % HondaMotorADR
Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg HMC 27.09 -0.9 SelectMedical SEM 8.77 -4.2 ARKGenomicRev ARKG 16.52 -5.9 NobilisHealth HLTH 1.82 -5.1 AlbanyMolecular AMRI 15.54 -2.7 CombiMatrix CBMX 0.38 9.9 Gentex GNTX 12.93 0.2
HudBayMineralsWt HBM/WS 0.08 61.0 ServiceNow NOW 57.67 -15.7 CSOPFTSEChinaA50 AFTY 11.41 -0.6 TejonRanchWt TRC/WS 0.00 -12.5 AldeyraTherapeutic ALDX 4.71 -3.4 Compugen CGEN 4.43 1.1 GoresHoldingsClA GRSH 9.50 -1.7
Aircastle AYR 16.86 -1.6 IMSHealthHoldings IMS 22.36 -1.4 SignetJewelers SIG 112.57 -4.2 CSOPMSCIChinaAInt CNHX 23.51 -11.2 USAntimony UAMY 0.20 -2.9 Alkermes ALKS 30.49 -5.3 Conmed CNMD 35.53 -4.7 GreenBancorp GNBC 6.87 2.4
NYSE highs - 31 AlerepfB ALRpB 254.51 -2.8 INGGroepADR ING 11.16 -1.6 ColumbiaSelLCGrwth RWG 38.87 -0.6 AllegiantTravel ALGT 134.64 -3.6 CONN 12.20 -6.2 Grifols ADR GRFS 14.15 -3.1
SonicAutomotiveA SAH 16.12 -1.6 Conns
AGLResources GAS 64.86 1.2 AllianceData ADS 197.83 -19.4 Imation IMN 0.80 -5.5 SonyADR SNE 19.90 -3.6 DeutscheXHarCSI300 ASHR 21.14 -1.6 Nasdaq highs - 15 AlliedHealthcare AHPI 0.82 -6.2 DISHNetworkClA DISH 46.53 -0.2 GuidanceSoftware GUID 4.50 -0.9
AgreeRealty ADC 35.53 1.6 AmericanAxle AXL 12.39 -2.1 Imax IMAX 27.95 -2.9 DeutscheXCSI500ChA ASHS 28.58 -3.0 AstroMed ALOT 15.90 ... AlnylamPharm ALNY 63.63 -6.5 Datawatch DWCH 3.10 -25.3 H&E EquipSvc HEES 11.12 -22.0
AmericanExpress AXP 52.15 -3.0 IndustrsBachocoADR IBA 40.43 -0.6
Sparton SPA 16.33 -1.1
Airgas ARG 139.70 0.7 DeutscheXAllChina CN 24.81 -5.3 Baldwin&LyonsB BWINB 25.00 2.0 Analogic ALOG 71.74 -4.0 DAVIDsTEA DTEA 9.41 -4.0 HTGMolecularDiagn HTGM 3.07 -14.8
AmericanWaterWorks AWK 63.93 AmerprsFncl AMP 81.40 -4.6 JumeiIntlADR JMEI 5.85 -1.3 StanleyBlDck SWK 89.01 -4.5
1.6 DirexionCSI300CNA CHAU 13.26 -2.7 BaringtonHilcoRt BHACR 0.37 131.1 ArbutusBiopharma ABUS 3.19 -5.2 Deswell DSWL 1.11 -8.1 Harmonic HLIT 3.12 -5.1
AtmosEnergy ATO 67.61 3.2 AmeriSrcBrg ABC 87.09 -3.2 JuniperNetworks JNPR 21.95 -15.4 StateSt STT 50.73 0.1
DirexnPharmBull2X PILL 27.00 -8.4 BonaFilmGroupADR BONA 13.38 0.1 ArcticCat ACAT 8.90 5.8 DimensionTherap DMTX 6.84 -1.5 Helios&Matheson HMNY 1.23 -2.8
BancofCalifornia BANC 15.98 6.6 AnthemInc.CorpUn ANTX 43.24 -1.3 KARAuctionServices KAR 31.93 -2.1 TCFFinancial TCB 11.45 -3.6
DirexnS&PBiotechBl LABU 6.55 -11.1 ConnecticutWater CTWS 42.36 0.3 ArrayBioPharma ARRY 2.97 -2.6 Diodes DIOD 18.21 -1.6 Hortonworks HDP 9.31 -2.0
BlkRkMuniAssets MUA 14.78 -0.8 AsburyAutomotive ABG 44.62 -2.4 Kemet KEM 1.26 -21.4 TableauSoftware DATA 71.61 5.8
AlphaCloneIntl ALFI 19.11 -2.0 Cray CRAY 38.90 -0.3 AspenTech AZPN 32.08 -0.9 DscvryLbs DSCO 1.75 1.0 ImmunePharma IMNP 0.48 -4.0
BlkRkMunienFd MEN 12.39 0.7 Ashland ASH 91.23 -2.3 Kirby KEX 44.63 -4.0 Teladoc TDOC 14.65 -4.5
KraneBoseraChinaA KBA 26.50 -1.5 DeltaNaturalGas DGAS 22.05 2.3 AssemblyBioscience ASMB 4.98 -0.8 EagleBlkShip EGLE 1.27 -7.2 Incyte INCY 64.51 -9.6
CampbellSoup CPB 56.16 1.3 AsiaPacificFund APB 8.80 0.1 Lannett LCI 24.34 -11.3 Toll Bros TOL 26.57 0.2 INSM 12.32 -1.7
MktVtrsChinaAMCA PEK 33.38 -1.3 IntgtElecSvcs IESC 12.32 1.0 AtlassianClA TEAM 20.17 -8.5 EastWestBancorp EWBC 31.39 -6.3 Insmed
ChespkeUtil CPK 63.59 2.0 AspenAerogels ASPN 4.29 -2.9 LejuHoldingsADR LEJU 3.88 -6.2 TriNetGroup TNET 14.13 -1.0 InsysTherapeutics INSY 18.19 -9.1
MktVectorsChinaAMC CNXT 28.41 -3.6 MBTFinancial MBTF 7.89 6.6 AtriCure ATRC 16.45 -7.1 EmpireResortsRt NYNYR 0.05 5.3
DeanFoods DF 20.00 -0.6 AutohomeADR ATHM 23.35 -1.4 LionsGateEnt LGF 25.67 -4.7 TriumphGroup TGI 26.57 -11.7 IntecPharma NTEC 3.97 -5.4
MeidellTacticalAdv MATH 25.62 -0.3 MGEEnergy MGEE 48.47 1.5 Attunity ATTU 5.47 -31.4 Endologix ELGX 7.15 -7.8
DelhaizeGroupADR DEG 26.86 4.0 AutoNation AN 40.45 -5.7 LithiaMotorsClA LAD 72.95 -3.9 UnitedRentals URI 44.60 -18.4 PIMCOLowDuration LDUR 97.22 -0.6 MiddleburgFnl MBRG 19.48 1.5 BANR 39.48 -0.1 InterceptPharm ICPT 99.03 -9.9
Banner Enteromedics ETRM 0.92 -7.0
DigitalRealtyTrust DLR 80.80 3.2 BitautoHldgsADR BITA 18.18 -2.2 McKesson MCK 152.22 -4.1 US Steel X 6.15 0.3 IntervalLeisureGrp IILG 11.65 -2.2
PowerSharesChinaA CHNA 23.07 ... UltraProShrtBiotec ZBIO 41.26 10.7 BellicumPharmactls BLCM 10.75 -8.2 Epizyme EPZM 8.90 -1.6
GeneralElcCapNts GEK 25.94 0.1 BrasilAgroADR LND 2.18 2.3 MeadJohnNutr MJN 65.53 2.9 Valhi VHI 1.07 -0.9 ProShrUltSh3-7YrTr TBZ 26.81 -0.3 IVTY 7.32 -6.3
ProShUltShNdBtech BIS 46.60 7.1 BioMarinPharm BMRN 72.53 -8.4 EyegatePharmWt EYEGW 0.22 -28.3 Invuity
LacledeGroup LG 61.98 2.9 BridgepntEdu BPI 6.43 -1.5 MetaldynePerform MPG 11.60 -0.3 WPGLIMCHERPfdI WPGpI 24.58 -1.7 IronwoodPharmClA IRWD 8.84 -0.3
SPDR S&P Biotch XBI 48.90 -3.8 SparkEnergy SPKE 26.58 4.2 BioShrsBiotechClin BBC 18.74 -4.1 FateTherapeutics FATE 2.05 0.5
McDonalds MCD 122.60 1.2 CIT Grp CIT 28.98 -1.6 Mobileye MBLY 24.75 -3.4 W.R.GraceWi GRAw 61.00 -1.6 iShNasdaqBiotech IBB 259.06 -3.6
WorkplaceEquality EQLT 21.86 0.1 StratusProperties STRS 25.00 17.5 BlueprintMedicines BPMC 15.41 -7.1 FibrocellScience FCSC 2.39 -5.4
NipponTelegraphADR NTT 41.66 2.7 CastlightHealthB CSLT 3.09 -0.9 Mosaic MOS 22.05 1.9 Welltower6.5%PfdI HCNpI 55.74 -1.2 JunoTherapeutics JUNO 26.80 -7.3
CabotMicro CCMP 37.56 -1.5 FifthStreetAssetA FSAM 2.11 -4.0
NiSource NI 20.85 3.0 Catalent CTLT 22.17 -2.1 NatuzziADR NTZ 1.36 1.8 WestmorelandRes WMLP 2.51 -7.4 NYSE MKT highs - 3 Nasdaq lows - 175 K2MGroupHoldings KTWO 13.21 -4.8
Cardtronics CATM 28.90 -1.1 FinancialEngines FNGN 25.02 -2.2
NuveenMuni2021 NHA 10.25 ... Celestica CLS 8.07 -15.7 NetSuite N 64.04 -0.1 WDAY 60.17 -3.8 KaryopharmTherap KPTI 5.69 -6.2
Workday BlkRkNY MI Tr2 BFY 16.08 1.3 ACADIA Phar ACAD 19.95 -6.5 CareTrustREIT CTRE 9.97 -1.6 FirstCashFinSvcs FCFS 29.64 -19.7
ONEGas OGS 55.60 3.1 ChinaLifeInsADR LFC 11.60 -1.5 NewRelic NEWR 27.15 -1.5 XeriumTechnologies XRM 8.33 -1.4 KuraOncology KURA 4.52 -2.1
GAMCOGlbGoldPfB GGNpB 23.25 1.4 AMAG Pharm AMAG 20.85 -2.9 CatalystBioscience CBIO 1.84 -1.4 FirstConnBncp FBNK 14.42 -3.7
PartnerRePfdD PREpD 27.96 1.4 CinemarkHoldings CNK 28.59 -2.3 Novartis ADR NVS 75.64 -2.1 LPLFinHoldings LPLA 29.80 -3.6
PiedmontNaturalGas PNY 59.19
NE Realty NEN 52.35 -0.5 ANIPharmaceuticals ANIP 30.93 -3.6 CelldexTher CLDX 8.40 -12.0 FlamelTechsADR FLML 9.45 -0.7
1.0 Cubic CUB 39.13 -0.7 OMAssetManagement OMAM 10.46 -0.8 NYSE Arca highs - 2 Lands'End LE 19.84 -2.3
PIMCO MuniII PML 12.92 1.0 DeutscheBank DB 17.61 -3.6 OmegaHealthcare OHI 31.52 -2.9
Ability ABIL 8.50 -9.6 Cemtrex CETX 2.02 -4.1 FlexPharma FLKS 8.00 -7.9
DirexionS&PBioBr1X LABS 56.29 3.1 NYSE MKT lows - 7 AccelerateDiagnos AXDX 13.61 -2.1 Cepheid CPHD 28.27 -2.4 FlexCredScoreUSLg LKOR 49.01 -0.3 LantheusHoldings LNTH 2.02 -5.0
PrecisionCastparts PCP 234.90 ... DiamondResortsIntl DRII 17.48 -4.5 Oshkosh OSK 29.59 -7.4 Continued on Page C7
PublicStoragePfdB PSApB 24.99 0.2 DiscoverFinSvcs DFS 44.82 -8.0 PROSHoldings PRO 11.97 -3.0 DirexionS&PBiotech LABD 78.67 11.1 CorindusVascular CVRS 2.01 -8.2 Achaogen AKAO 3.89 -5.9 ChemoCentryx CCXI 3.61 -3.7 FoundationMedicine FMI 13.42 -2.7
STORECapital STOR 24.47 2.8 EveriHoldings EVRI 2.75 -4.2 PackCpAm PKG 48.53 -1.8
ServiceMasterGlb SERV 40.67
Smucker SJM 127.62
1.8
1.5
Evertec EVTC 13.60 -0.3 PenskeAuto PAG 29.71 -4.4
EvolentHealthClA EVH 9.53 -5.8 Pier 1 PIR 3.76 -1.8 Online>> Bonds | WSJ.com/bonds
SolarWinds SWI 59.95 0.6 GCPAppliedTechs GCPw 18.75 -6.3 PolarisIndustries PII 67.80 -0.8 During the trading day, 52-week
TecoEnergy TE 27.44 0.3 Gildan GIL 24.91 0.3 ProtoLabs PRLB 52.00 -1.9
TN Vly Parrs TVC 25.94 -1.0 GlobalPtnrs GLP 13.11 -21.1 PumaBiotechnology PBYI 41.05 -3.7 highs and lows are updated Tracking Bond Benchmarks
GlblPwrEquipment GLPW 2.50 -3.8 Quantum QTM 0.63 -2.0 hourly at WSJMarkets.com. Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
NYSE lows - 110 GrphPackHldg GPK 10.71 -1.4 RayJamFnl RJF 42.57 -1.7 Lists for each market are
AbbottLabs ABT 36.00 -9.3 Greatbatch GB 37.08 -3.8 ResoluteForestProd RFP 5.29 -5.3 highs and lows for different types of bonds
AEGONNotes AEK 26.83 -0.1 Gp1Auto GPI 52.03 -5.6 SCETrIIIPfd SCEpH 25.95 0.2 available free, along with easy Total return Yield (%), 52-Week Range l Latest
AerCapHoldings AER 28.70 -4.8 GrubHub GRUB 17.77 -3.0 SLGreenRealty SLG 92.00 -8.1 access to charts and headlines. close YTD total return (%) Index Latest Low 0 4 8 12 16 20 High
1846.66 1.1 Broad market Barclays Aggregate 2.400 1.920 l 2.630

2470.23 0.02 U.S. Corporate Barclays Capital 3.690 2.780 l 3.710
2423.20 0.2 Intermediate 3.090 2.210 l 3.120
ADVERTISEMENT
3133.63 -0.5 Long term 5.090 4.030 l 5.110
Legal Notices
To advertise: 800-366-3975 or WSJ.com/classifieds
522.62
608.20 -0.6
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PUBLIC NOTICES 2343.15 -1.3 High Yield 100 8.067 5.016 l 8.696
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259.36 -1.4 5.988 3.550 6.412
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Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg

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Continental Resources CLR 5.000 Sept. 15, ’22 1050 –141 1317 19.35 –1.17
" # Southwestern Energy SWN 4.050 Jan. 23, ’20 1407 –71 1753 8.54 –3.17
G H 3 C
D - H .
Motorola Solutions MSI 4.000 Sept. 1, ’24 385 –44 n.a. 64.74 –0.09
B

Williams Partners WPZ 4.875 May 15, ’23 750 –37 818 22.10 6.40
$' 8 II $ ' ? II 9 Energy Transfer Partners ETP 4.050 March 15, ’25 485 –35 545 30.13 6.65
E
#D( E#0 Kinder Morgan Energy Partners KMI 5.950 Feb. 15, ’18 382 –34 384 … …
Noble Energy NBL 3.900 Nov. 15, ’24 410 –24 423 30.97 3.68
Shell International Finance BV* RDSALN 2.375 Aug. 21, ’22 171 –20 180 ... ...
…And spreads that widened the most

Freeport–McMoRan FCX 2.375 March 15, ’18 2538 137 2717 4.42 –4.95
Hess HES 7.125 March 15, ’33 616 98 520 40.34 9.47

Anglo American Capital AALLN 3.625 May 14, ’20 1319 65 1309 ... ...
SESI SPN 6.375 May 1, ’19 1635 58 1410 9.99 7.42
Noble Holding International NE 3.950 March 15, ’22 1708 51 1647 … …
PUBLIC NOTICES Glencore Funding GLENLN 2.500 Jan. 15, ’19 1118 49 n.a. ... ...
salesforce.com CRM 0.250 April 1, ’18 584 45 702 65.69 –2.58
American Express AXP 6.800 Sept. 1, ’66 602 25 n.a. 52.88 –3.01
High-yield issues with the biggest price increases…

Notice of Annual Policyholder’s Meeting Bond Price as % of face value Stock Perfomance
Notice is hereby given that the Annual Policyhold- Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
er’s Meeting of American Family Mutual Insur-
United States Steel X 7.000 Feb. 1, ’18 63.000 5.50 62.500 6.69 0.30
LEGALNOTICES
ance Company (the "Company") will be held
Tuesday March 1, 2016 at 2:00 p.m. at the Com- Oasis Petroleum OAS 6.875 Jan. 15, ’23 56.000 4.50 45.000 4.79 –9.96
pany’s principal office located at 6000 American Endeavor Energy Resources ENDENR 7.000 Aug. 15, ’21 86.000 4.00 80.000 ... ...
Parkway in Madison Wisconsin 53783 to conduct Energy Transfer Equity ETE 5.875 Jan. 15, ’24 76.750 3.75 67.375 8.78 –0.79
the following business: Whiting Petroleum WLL 5.000 March 15, ’19 63.500 3.75 52.250 6.80 –3.82
I. Election of Directors
II. Proposed Amendment of the Company’s Arti-
ADVERTISE TODAY FMG Resources FMGAU 8.250 Nov. 1, ’19 79.000 3.00 75.563 ... ...
cles of Incorporation to remove the requirement
Levi Strauss LEVI 5.000 May 1, ’25 100.000 3.00 94.750 ... ...
that a majority of the Board of Directors of the Alcoa AA 6.150 Aug. 15, ’20 99.300 2.80 96.500 7.00 0.57
Company shall be citizens and residents of the (800) 366-3975
State of Wisconsin.
…And with the biggest price decreases
At the meeting, voting will be required for the sales.legalnotices@wsj.com Illinois Power Generating DYN 7.000 April 15, ’18 54.000 –1.89 n.a. … …
election of Directors, the amendment of the Arti- Tullow Oil TLWLN 6.000 Nov. 1, ’20 62.500 –1.81 n.a. ... ...
cles of Incorporation, and for any other eligible Place an ad at: wsj.com/classifieds Altice US Finance S.A. ATCNA 7.750 July 15, ’25 89.500 –1.75 89.000 ... ...
matters that may be raised by policyholders.
Chesapeake Energy CHK 6.625 Aug. 15, ’20 26.875 –1.63 29.750 3.16 –3.66
Date: January 29, 2016 © 2016 Dow Jones & Company, Inc. United Rentals URI 7.625 April 15, ’22 102.750 –1.50 102.313 45.58 –18.37
David C. Holman All Rights Reserved. Laureate Education LAUR 10.000 Sept. 1, ’19 54.750 –1.40 56.500 ... ...
Secretary, American Family Mutual Insurance Caesars Entertainment Resort Properties CERPLC 11.000 Oct. 1, ’21 86.750 –1.06 87.500 ... ...
Company Icahn Enterprises IEP 6.000 Aug. 1, ’20 94.438 –1.01 94.000 52.03 –0.76
*Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.
Note: Data are for the most active issue of bonds with maturities of two years or more
Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
THE WALL STREET JOURNAL. Friday, January 29, 2016 | C7
BIGGEST 1,000 STOCKS

Continued From Page C4 Net Net Net Net Net Net Net Net
Net Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg
Stock Sym Close Chg McCormick MKC 85.41 3.22 PioneerNaturalRscs PXD 120.01 6.11 StanCorpFinancial SFG 114.58 0.18 VoyaFinancial VOYA 30.24 0.11 CheckPointSoftware CHKP 76.84 1.64 Microsoft MSFT 52.06 0.84
GenDynam GD 128.65 -0.35 Hubbell HUBB 88.40 2.11
Entergy ETR 70.56 1.01 GenElec GE 28.21 0.21 Humana HUM 159.79 -1.51 McCormickVtg MKC/V 85.23 3.23 PlainsAllAmPipe PAA 20.20 1.32 t StanleyBlDck SWK 91.82 -4.30 VulcanMaterials VMC 83.24 -0.42 CincinnatiFin CINF 55.71 0.89 Middleby MIDD 86.38 0.31
EntPdtsPtnr EPD 23.84 1.62 GeneralGrowthProp GGP 27.56 0.42 HuntingtonIngalls HII 122.45 0.29 s McDonalds MCD 122.38 1.51 PlainsGPHldgsClA PAGP 7.80 0.06 StarwoodHotels HOT 60.32 -1.13 WABCO Hldg WBC 85.90 -0.05 Cintas CTAS 83.14 0.38 MondelezIntlClA MDLZ 41.55 0.43
EnvisionHealthcare EVHC 21.42 -1.95 GeneralMills GIS 55.21 0.27 HyattHotels H 37.53 -0.34 McGrawHillFin MHFI 82.38 -1.13 PlumCrk PCL 38.98 -0.18 StarwoodPrTr STWD 18.72 0.08 WECEnergyGroup WEC 54.70 1.12 CiscoSystems CSCO 23.11 -0.32 MonsterBeverage MNST 137.20 -0.77
Equifax EFX 101.77 -1.21 GeneralMotors GM 29.02 -0.19 ICICIBankADR IBN 6.54 -0.48 t McKesson MCK 160.12 -6.80 t PolarisIndustries PII 69.61 -0.57 t StateSt STT 51.98 0.07 W.P.Carey WPC 56.97 0.17 CitrixSystems CTXS 68.51 2.61 Mylan MYL 50.43 -0.80
EquityLife ELS 63.80 -0.90 Genpact G 23.56 -0.17 IHSClA IHS 101.44 2.77 t MeadJohnNutr MJN 70.20 2.00 PotashCp POT 15.47 0.28 StatoilADR STO 13.31 0.80 Wabtec WAB 62.15 -0.23 CognizantTechSolns CTSH 61.34 0.33 NXP Semi NXPI 70.28 -0.37
EqResdntl EQR 75.79 -2.48 GenuineParts GPC 83.35 1.33 t IMSHealthHoldings IMS 22.46 -0.31 Mednax MD 66.93 -1.93 Praxair PX 98.20 0.10 Steris STE 67.88 -1.03 WalMart WMT 64.22 0.27 Comcast A CMCSA 54.11 -0.01 Nasdaq NDAQ 58.89 0.59
EssexProp ESS 210.78 -9.66 t Gildan GIL 25.20 0.08 t INGGroepADR ING 11.31 -0.18 Medtronic MDT 73.91 -1.58 s PrecisionCastparts PCP 234.85 0.04 STMicroelectronics STM 6.63 -0.12 WasteConnections WCN 58.99 0.04 CoStarGroup CSGP 170.40 0.30 NetApp NTAP 21.48 0.17
EsteeLaudr A EL 83.69 1.29 GlaxoSmithKlineADR GSK 40.64 0.04 Invesco IVZ 28.55 -0.43 Merck MRK 49.20 -1.17 PrincipalFinancial PFG 37.46 -0.14 Stryker SYK 97.31 -1.29 WasteMgt WM 52.07 0.18 CostcoWholesale COST 149.59 1.86 NeteaseADR NTES 153.75 -0.29
EvrstReGrp RE 174.46 2.18 GlblPymts GPN 55.85 -0.70 ITCHoldings ITC 38.74 0.40 MetLife MET 43.78 0.52 Procter&Gamble PG 79.82 1.02 SumitomoMitsADR SMFG 6.78 -0.06 Waters WAT 117.45 -3.80 Ctrip.comIntlADR CTRP 40.84 -0.73 Netflix NFLX 94.41 3.26
EversourceEnergy ES 53.09 0.77 GoDaddyClA GDDY 29.47 0.64 IDEX IEX 69.50 -1.45 MettlerToledo MTD 307.40 -5.45 ProgressiveCorp PGR 30.72 0.34 SunLifeFinancial SLF 28.13 0.60 WeatherfordIntl WFT 6.21 0.22 t DISHNetworkClA DISH 47.00 -0.09 NewsCorpClA NWSA 12.84 0.14
Exelon EXC 28.71 0.66 Goldcp GG 11.08 -0.02 IllinoisToolWorks ITW 88.76 2.55 MichaelKorsHldgs KORS 38.73 0.70 ProgressWasteSol BIN 27.69 0.04 SuncorEnergy SU 23.34 1.10 WellsFargo WFC 48.92 0.35 Dentsply XRAY 58.13 -0.69 NewsCorpClB NWS 13.18 0.12
ExtraSpaceStorage EXR 89.34 0.60 GoldmanSachs GS 157.06 3.34 InfosysADR INFY 17.30 -0.12 MidAmApt MAA 91.93 -0.43 Prologis PLD 38.88 -0.59 SunocoLogistics SXL 21.58 1.07 Welltower HCN 60.43 -1.17 Dexcom DXCM 69.54 -1.78 NorthernTrust NTRS 59.77 -0.04
ExxonMobil XOM 76.99 GraceWR GRA 78.65 -1.50 49.95 -0.07 MindrayMedADR MR 26.95 ... PrudentialFin PRU 68.84 0.33 SunTrustBanks STI 36.32 1.02 WestarEnergy WR 42.23 0.75 DiamondbackEnergy FANG 72.79 4.52 t NorwegianCruise NCLH 42.46 -2.77
1.70 Ingersoll-Rand IR
FMC FMC 34.62 -0.09 Grainger GWW 192.18 7.06 Ingredion INGR 96.95 7.51 MitsubishiUFJADR MTU 5.24 -0.05 PrudentialADR PUK 38.19 0.46 SynchronyFinancial SYF 27.99 -0.45 WesternGasEquity WGP 27.40 0.01 DiscoveryCommsA DISCA 26.73 -0.37 NuanceComms NUAN 17.35 -0.05
FMCTechnologies FTI 24.32 0.40 GpoAeroportuarADR PAC 82.13 -1.03 ICE ICE 254.54 1.76 MizuhoFinancialADR MFG 3.55 0.01 PublicServiceEnt PEG 40.37 0.77 SyngentaADR SYT 72.57 0.50 WesternGasPartners WES 32.87 1.36 DiscoveryCommsC DISCK 26.44 -0.35 NVIDIA NVDA 28.05 -0.31
FactSetResearchSys FDS 147.87 0.61 GpoAvalAccionesADR AVAL 6.46 0.10 InterContinentlADR IHG 32.91 -0.07 MobileTeleSysADR MBT 7.04 0.46 PublicStorage PSA 249.06 0.88 Sysco SYY 39.50 0.19 WesternUnion WU 17.12 0.27 DollarTree DLTR 78.91 0.94 OReillyAuto ORLY256.34 9.92
FedRlty FRT 147.83 -0.26 GpFinSantandMexADR BSMX 7.44 0.07 IBM IBM 122.22 1.26 MohawkIndustries MHK 163.38 -1.31 PulteGroup PHM 16.39 0.31 TEConnectivity TEL 55.90 -0.32 WestlakeChemical WLK 46.57 1.26 DunkinBrands DNKN 39.00 1.27 OldDominionFreight ODFL 52.25 -0.38
FedEx FDX 128.22 -0.03 GrupoTelevisaADR TV 25.69 -0.31 IntFlavor IFF 112.19 0.67 MolsonCoors A TAP/A 88.79 0.08 Qihoo360Technology QIHU 70.77 -0.60 TEGNA TGNA 23.05 -0.48 WestpacBankingADR WBK 21.51 0.29 E Trade ETFC 23.26 -0.21 OpenText OTEX 48.53 -0.14
Ferrari RACE 39.96 -0.65 HCAHoldings HCA 67.51 0.04 InternationalPaper IP 32.65 -0.26 MolsonCoors B TAP 88.45 0.70 QuestDiag DGX 64.15 -1.60 TELUS TU 27.50 1.06 WestRock WRK 31.65 -0.95 t EastWestBancorp EWBC 31.87 -2.13 Paccar PCAR 47.36 0.45
FiatChryslerAutos FCAU 7.10 -0.35 HCP HCP 35.00 -0.21 Interpublic IPG 22.00 -0.06 Monsanto MON 87.80 0.19 QuintilesTransnat Q 60.43 -1.50 TERNIUMADR TX 11.52 0.30 Weyerhaeuser WY 24.42 -0.10 eBay EBAY 23.13 -3.29 PacWestBancorp PACW 36.20 0.14
FibriaCelulose ADR FBR 10.32 -0.28 HDFCBankADR HDB 57.72 0.13 IronMountain IRM 26.10 0.27 Moodys MCO 87.13 -0.88 RELXADR RENX 16.25 0.08 TJX TJX 69.39 0.20 Whirlpool WHR 132.02 -0.35 ElectroArts EA 69.79 0.30 PaneraBreadClA PNRA 190.50 1.34
FidNtlFnl FNF 31.65 -0.08 HP HPQ 9.48 -0.14 IsraelChemicals ICL 4.05 0.19 MorganStanley MS 25.17 -0.20 RELXADR RELX 17.34 0.15 t TableauSoftware DATA 77.85 4.28 WhiteWaveFoods WWAV 36.59 -0.48 EndoInternational ENDP 54.95 -3.12 Paychex PAYX 46.42 -0.17
FNFVGroup FNFV 9.01 0.04 HSBCHoldingsADR HSBC 34.46 0.46 ItauUnibancoADR ITUB 5.82 0.05 t Mosaic MOS 23.00 0.43 RPM RPM 38.56 -0.10 TaiwanSemiconADR TSM 21.63 -0.05 Williams WMB 19.29 0.02 Equinix EQIX 300.22 0.65 PayPalHoldings PYPL 34.24 2.65
FidelityNtlInfo FIS 58.21 -0.60 Halliburton HAL 30.45 1.39 JPMorganChase JPM 57.28 0.24 MotorolaSolutions MSI 64.74 -0.06 RalphLaurenA RL 109.63 1.17 Target TGT 70.99 0.30 WilliamsPartners WPZ 22.10 1.33 EricssonADR ERIC 8.75 -0.24 People'sUnitedFin PBCT 14.04 0.08
58.comADR WUBA 54.86 -0.65 Hanesbrands HBI 29.62 -0.43 JacobsEngineering JEC 37.72 0.26 NTTDoCoMoADR DCM 20.88 0.51 RangeResources RRC 27.85 0.61 TaroPharm TARO 141.25 -5.23 WilliamsSonoma WSM 49.50 -1.24 ErieIndemnityClA ERIE 93.98 1.07 PilgrimPride PPC 21.73 0.14
t HarleyDavidson HOG 38.92 1.43 JamesHardieADR JHX 11.46 0.25 NVR NVR 1627.95 6.09 t RayJamFnl RJF 42.72 -0.73 TataMotorsADR TTM 23.98 -0.75 WiproADR WIT 11.37 -0.07 Expedia EXPE 98.69 -0.84 t Premier PINC 30.97 -0.47
FirstRepublicBank FRC 66.57 1.02
FirstEnergy FE 32.14 0.22 t HarmanIntlInds HAR 69.01-10.72 Jarden JAH 51.67 0.56 NationalGridADR NGG 69.86 0.69 Raytheon RTN 122.18 4.11 s TecoEnergy TE 27.31 0.09 WooriBankADR WF 21.51 0.17 ExpeditorsIntl EXPD 44.48 0.42 PricelineGroup PCLN 1043.13 -0.57
JohnsJohns JNJ 102.27 0.11 NtlOilwellVarco NOV 31.06 -0.04 RealogyHoldings RLGY 32.16 -0.47 TelecomItaliaADR TI/A 8.84 -0.19 t Workday WDAY 62.03 -2.47 ExpressScriptsHldg ESRX 69.86 -2.16 Qiagen QGEN 22.39 -0.03
FleetCorTechs FLT 117.50 -0.52 Harris HRS 84.79 -0.05
Flowserve FLS 37.52 0.50 HrtfrdFnl HIG 38.90 0.35 JohnsonControls JCI 34.66 -0.47 NtlRetailProp NNN 41.75 -0.20 RealtyIncome O 54.87 -0.01 TelecomItaliaADR TI 10.76 -0.38 WyndhamWorldwide WYN 63.41 -1.20 F5Networks FFIV 92.50 -2.84 Qorvo QRVO 36.67 -0.35
JonesLangLaSalle JLL 135.42 -1.45 t NetSuite N 65.58 -0.09 RedHat RHT 67.39 -0.60 Teleflex TFX 133.41 -1.51 XL Group XL 35.19 0.57 FacebookClA FB 109.11 14.66 t Qualcomm QCOM 43.59 -3.94
Fluor FLR 43.55 0.63 HealthNet HNT 64.43 -1.72
FomentoEconMexADR FMX 91.88 1.96 Helmerich&Payne HP 49.48 3.41 JoyGlobal JOY 9.51 0.26 NewOrientalEducADR EDU 30.45 0.21 RegencyCtrs REG 70.56 0.26 TelefonicaBrasADR VIV 8.33 -0.11 XcelEnergy XEL 37.57 0.89 Fastenal FAST 39.34 1.30 QunarCaymanIslADR QUNR 43.16 -1.19
FootLocker FL 67.31 1.59 Hershey HSY 87.00 2.57 t JuniperNetworks JNPR 22.46 -4.08 NY CmntyBcp NYCB 15.27 0.15 RegionsFinancial RF 8.01 0.06 TelefonicaADR TEF 10.24 -0.08 Xerox XRX 9.23 ... FifthThirdBancorp FITB 15.57 0.15 RandgoldRscsADR GOLD 69.49 0.37
t KARAuctionServices KAR 31.98 -0.68 Newell NWL 37.51 0.36 ReinsuranceGrp RGA 82.28 1.66 TelekmIndonesiaADR TLK 46.86 0.05 Xylem Inc. XYL 34.95 0.06 FirstSolar FSLR 65.88 0.24 RegenPharm REGN415.11-19.05
FordMotor F 11.71 -0.14 HertzGlobal HTZ 9.37 -0.32
ForestCityRealtyA FCE/A 19.57 -0.18 Hess HES 40.34 3.49 KBFinancialGrpADR KB 24.63 0.37 NewfldExpl NFX 27.58 1.06 RenaissanceRe RNR 111.52 0.58 TenarisADR TS 20.74 0.47 YPFADR YPF 15.96 0.78 Fiserv FISV 91.02 0.57 RossStores ROST 53.95 0.17
ForestCityRealtyB FCE/B 19.51 -0.29 HewlettPackardEnt HPE 13.19 -0.20 KKR KKR 13.53 0.14 NewMarket NEU 372.48 4.46 RepublicServices RSG 42.70 0.48 Tesoro TSO 83.75 0.94 YanzhouCoalADR YZC 3.89 0.11 FlextronInt FLEX 9.53 -0.06 RyanairHoldingsADR RYAAY 77.49 -2.23
FortBrandsHomeSec FBHS 46.78 -0.34 HiltonWorldwide HLT 17.18 -0.74 KTADR KT 11.26 -0.13 NewmontMining NEM 19.53 0.09 ResMed RMD 56.25 -1.32 TesoroLogistics TLLP 46.56 2.05 YoukuTudouADR YOKU 27.21 -0.05 Fortinet FTNT 26.36 0.53 SBACommunications SBAC 95.07 -0.18
KSCitySo KSU 69.35 2.29 NextEraEnergy NEE 108.30 1.57 RestaurantBrands QSR 33.04 0.19 TevaPharmADR TEVA 60.41 -1.62 YumBrands YUM 70.41 1.01 FrontierComms FTR 4.51 0.06 t SEIInvestments SEIC 37.32 -1.97
Franco-Nevada FNV 42.79 -0.82 HollyFrontier HFC 33.54 0.65
FranklinResources BEN 33.31 Kellogg K 72.79 1.22 Nidec ADR NJ 16.40 -0.05 ReynoldsAmer RAI 48.54 0.92 Textron TXT 33.59 0.90 ZayoGroupHoldings ZAYO 24.01 -0.22 Garmin GRMN 33.88 0.13 SS&CTechs SSNC 63.00 0.59
0.10 HomeDepot HD 122.28 0.71
Freeport-McMoRan FCX 4.42 t HondaMotorADR HMC 27.35 -0.25 KeyCp KEY 11.08 0.16 NielsenHoldings NLSN 46.86 0.95 RioTinto ADR RIO 24.46 0.36 ThermoFisherSci TMO 128.17 -7.66 ZimmerBiomet ZBH 97.55 -4.09 GileadSciences GILD 87.53 -2.10 SVBFinancialGroup SIVB 98.60 -1.37
-0.23
FreseniusMedADR FMS 43.41 KilroyRealty KRC 56.23 -0.76 NikeClB NKE 61.20 1.62 RiteAid RAD 7.68 -0.05 ThomsonReuters TRI 36.97 0.71 Zoetis ZTS 42.84 -0.31 Goodyear GT 27.76 -0.72 Sabre SABR 24.61 -0.55
-0.39 Honeywell HON 97.97 1.01
AJG 36.24 KimberlyClark KMB 126.27 2.07 s NipponTelegraphADR NTT 41.57 1.09 RobHalfIntl RHI 43.21 -0.07 3M MMM 147.32 1.77 t Grifols ADR GRFS 14.20 -0.46 SanDisk SNDK 67.25 3.04
Gallagr -0.83 HormelFoods HRL 78.33 1.72 NASDAQ t SeagateTechnology STX 26.75 -0.22
Gap GPS 24.01 0.25 DR Horton DHI 26.78 -0.04 KimcoRealty KIM 26.44 ... s NiSource NI 20.75 0.61 Rockwell ROK 93.13 -0.74 Tiffany TIF 61.38 -0.23 HDSupplyHoldings HDS 25.01 -0.16
KinderMorgan KMI 15.29 1.20 NobleEnergy NBL 30.97 1.10 RockwellCollins COL 81.17 1.36 TimeWarnerCable TWC 178.48 2.84 AMCNetworks A AMCX 71.16 -0.65 Hasbro HAS 72.35 1.19 SeattleGenetics SGEN 33.67 -2.05
Gartner IT 85.25 1.66 HostHotels&Resorts HST 13.19 -0.36
KingDigitalEnt KING 17.94 0.03 NokiaADR NOK 7.10 -0.08 RogerComm B RCI 33.65 -0.50 TimeWarner TWX 69.58 -1.37 Ansys ANSS 85.10 0.50 HenrySchein HSIC 146.50 -0.99 t ShireADR SHPG167.15 -3.05
Gazit-Globe GZT 7.86 0.01 HuanengPowerADR HNP 31.08 0.22
Kohl's KSS 47.99 -0.72 NomuraHoldingsADR NMR 5.13 0.01 RollinsInc ROL 26.36 0.18 t Toll Bros TOL 26.84 0.05 ARMHoldingsADR ARMH 40.74 -1.01 Hologic HOLX 33.07 -2.70 SignatureBank SBNY 135.70 2.47
KoninklijkePhilADR PHG 26.14 -0.01 Nordstrom JWN 47.99 -0.03 RoperTechnologies ROP 169.72 1.46 Torchmark TMK 53.01 0.50 ARRISInternational ARRS 24.95 -1.19 JBHunt JBHT 70.25 0.28 SiliconwareADR SPIL 7.47 -0.03
KoreaElcPwrADR KEP 21.53 0.27 NorfolkSouthern NSC 70.11 0.22 RoyalBkCanada RY 50.55 1.91 TorontoDominionBk TD 37.52 0.89 ASMLHolding ASML 89.81 0.10 HuntingtonBcshs HBAN 8.48 0.22 SiriusXMHoldings SIRI 3.64 0.01
New Highs and Lows Kroger KR 37.82 0.36 NorthropGrumman NOC 180.15
t Novartis ADR NVS 76.54
1.96 RoyalBkScotlandADR RBS 7.23 0.03 TotalADR TOT 44.05 0.78 AcadiaHealthcare ACHC 58.37 -1.82 IACInteractv IAC 50.50 -1.00 SironaDental SIRO 105.11 -1.33
SkyworksSolutions SWKS 64.79 2.65
KyoceraADR KYO 41.38 -0.18 -1.65 RoyalCaribbean RCL 78.33 -3.09 TotalSystemSvcs TSS 37.96 -1.26 ActivisionBliz ATVI 33.79 -0.28 IdexxLab IDXX 64.67 -0.52
Continued From Page C6 52-Wk % LBrands LB 94.48 0.51 NovoNordiskADR NVO 54.53 -1.09 RoyalDutchADRA RDS/A 43.33 1.53 ToyotaMotorADR TM 116.12 0.80 AdobeSystems ADBE 84.52 -0.33 IcahnEnterprises IEP 52.03 -0.40 t Splunk SPLK 44.34 -2.73
52-Wk % Stock Sym Hi/Lo Chg LGDisplayADR LPL 8.98 -0.18 Nucor NUE 36.64 0.94 RoyalDutchADRB RDS/B 43.49 1.49 TransCanada TRP 34.57 1.02 t AkamaiTechnologies AKAM 43.47 -0.88 Illumina ILMN 154.25 -8.17 Staples SPLS 8.73 -0.17
Stock Sym Hi/Lo Chg ProNAiTherapeutics DNAI 8.75 -5.5 L-3Communications LLL 111.98 1.77 NuSTAREnergy NS 30.54 0.79 SAPADR SAP 77.70 -1.19 TransdigmGrp TDG 219.29 -1.85 AlexionPharm ALXN 145.61 -5.51 t Incyte INCY 67.81 -7.18 Starbucks SBUX 59.28 1.65
LabCpAm LH 109.79 -3.03 OGEEnergy OGE 25.18 0.34 SINOPECShanghaiADR SHI 39.57 1.16 TransUnion TRU 23.98 -0.14 AlignTechnology ALGN 59.51 -1.91 Intel INTC 29.97 0.16 Stericycle SRCL 116.93 -0.94
LibertyTripAdvA LTRPA 21.73 -1.4 ProQRTherapeutics PRQR 4.94 -14.9 LasVegasSands LVS 42.79 1.20 ONEOK OKE 23.91 1.40 SKTelecomADR SKM 18.99 0.30 TravelersCos TRV 104.47 1.16 t Alkermes ALKS 30.64 -1.73 InteractiveBrokers IBKR 31.46 -0.51 Symantec SYMC 19.50 0.28
LivePerson LPSN 5.53 -0.5 ProShrUltNdBTh BIB 41.12 -7.3 Lazard LAZ 34.46 -0.49 ONEOKPartners OKS 26.60 1.67 t SLGreenRealty SLG 93.42 -8.25 TurkcellIletismADR TKC 8.59 0.10 t AlnylamPharm ALNY 65.18 -4.50 Intuit INTU 92.03 1.26 Synopsys SNPS 41.61 0.10
Macrogenics MGNX 19.37 -5.1 UltraPrNASDQBiotec UBIO 24.65 -10.7 LearCorp LEA 101.02 -1.01 OccidentalPetrol OXY 65.87 1.71 Salesforce.com CRM 65.69 -1.74 TurquoiseHillRscs TRQ 1.92 0.06 AlphabetClA GOOGL 748.30 30.72 IntuitiveSurgical ISRG 526.59 -7.43 TDAmeritrade AMTD 27.35 -0.92
MktVectorsGenDrugs GNRX 24.02 -2.7 Pulmatrix PULM 2.69 -5.0 Leggett&Platt LEG 39.70 0.14 Och-ZiffCapMgmt OZM 5.04 -0.01 SanofiADR SNY 40.89 -0.69 Twitter TWTR 16.49 -0.29 AlphabetClC GOOG 730.96 30.97 IonisPharma IONS 39.73 -2.76 TFSFinancial TFSL 17.42 0.15
Marketo MKTO 18.66 -4.6 QlikTechnologies QLIK 23.65 0.4 LennarClA LEN 41.28 -0.54 OldRepublic ORI 18.03 0.19 SasolADR SSL 26.01 1.16 TycoInternational TYC 33.48 -0.14 Amazon.com AMZN 635.35 52.00 JD.comADR JD 25.37 -0.01 T-MobileUS TMUS 38.67 0.17
MattressFirmHldg MFRM 35.31 -7.0 Qualcomm QCOM 43.47 -8.3 LennarClB LEN/B 33.85 -0.46 t OmegaHealthcare OHI 31.55 -0.93 SCANA SCG 61.39 0.87 TylerTechnologies TYL 152.99 -3.74 Amdocs DOX 53.91 1.48 JackHenry JKHY 78.15 0.23 TRowePrice TROW 68.42 2.19
MedTransBill11APfd MTBCP 24.37 -1.9 Qualys QLYS 23.70 -7.2 LennoxIntl LII 115.72 -1.55 OmnicomGroup OMC 71.89 0.37 Schlumberger SLB 69.51 3.96 TysonFoodsClA TSN 52.59 0.73 Amerco UHAL 340.84 -3.36 JazzPharma JAZZ 124.60 -3.61 TeslaMotors TSLA 189.70 1.63
Medivation MDVN 30.88 -0.5 Quidel QDEL 15.77 -3.8 LeucadiaNational LUK 16.18 -0.03 OpkoHealth OPK 7.69 -0.17 SchwabC SCHW 24.82 -0.43 UBSGroup UBS 16.34 0.13 AmericaMovilClAADR AMOV 13.41 0.10 JetBlue JBLU 19.92 -1.33 TexasInstruments TXN 51.13 0.84
MercerIntl MERC 6.77 -0.7 RegulusTherapeutic RGLS 5.35 -6.7 Level3Comm LVLT 47.18 -0.46 Oracle ORCL 35.33 0.42 ScrippsNetA SNI 59.31 -0.74 UDR UDR 35.04 -0.52 AmerAirlinesGrp AAL 38.14 -1.55 KLA Tencor KLAC 65.45 1.02 TractorSupply TSCO 84.98 0.76
LibertyPropertyTr LPT 29.02 0.08 OrangeADR ORAN 17.40 -0.07 t SealedAir SEE 38.36 -1.44 UGI UGI 33.12 0.52 AmeriCapAg AGNC 16.53 0.10 KeurigGreenMtn GMCR 89.09 -0.21 TrimbleNavigation TRMB 18.96 -0.18
Metabolix MBLX 0.98 -10.1 RockwellMedical RMTI 6.44 -4.7
EliLilly LLY 76.81 -4.95 OrbitalATK OA 86.80 0.90 SempraEnergy SRE 92.83 1.50 UltraparPartADR UGP 14.09 0.22 AMGN 148.35 -2.12 KraftHeinz KHC 76.16 0.19 TripAdvisor TRIP 67.32 -0.22
Mimecast MIME 6.01 -7.6 SEIInvestments SEIC 35.70 -5.0 Amgen
21stCenturyFoxClA FOXA 26.13 -0.45
MobileMini MINI 24.28 -1.5 SabraHlthcrREIT SBRA 17.67 -0.1 LincolnNational LNC 38.57 -0.31 OrixADR IX 67.05 -2.65 ServiceCp SCI 23.48 -0.19 UnderArmour A UA 84.07 15.49 AmTrustFinSvcs AFSI 56.38 -0.35 LKQ LKQ 26.46 0.31
LinkedInA LNKD 191.14 3.11 OwensCorning OC 44.79 ... s ServiceMasterGlb SERV 40.56 0.71 UnileverADR UN 43.22 0.18 AnalogDevices ADI 51.76 0.48 LamResearch LRCX 69.45 1.95 21stCenturyFoxClB FOX 26.23 -0.35
ModusLink MLNK 1.95 0.5 SageTherapeutics SAGE 31.50 -4.2 UltaSalon ULTA 174.34 0.41
LiveNationEnt LYV 21.74 -0.26 PG&E PCG 53.76 1.03 t ServiceNow NOW 63.57-11.80 UnileverADR UL 43.02 0.27 Apple AAPL 94.09 0.67 LamarAdvertisingA LAMR 55.04 -0.07
MokoSocialMediaADR MOKO 0.40 -2.2 SalemMediaGroup SALM 3.72 -0.8 UltimateSoftware ULTI 167.98 -0.54
LloydsBankingADR LYG 3.75 0.04 PNC FnlSvcs PNC 84.91 -0.14 ShawCom B SJR 17.06 0.31 UnionPacific UNP 70.16 1.10 AppliedMaterials AMAT 16.68 -0.41 LibertyBroadbandA LBRDA 46.39 0.14
MoneyGramIntl MGI 4.99 -2.7 SareptaTherapeutic SRPT 11.23 -5.3 LockheedMartin LMT 206.66 -1.20 SherwinWilliams SHW249.66 -2.59 UnitedContlHldgs UAL 46.11 -1.60 UnitedTherapeutics UTHR 122.79 -2.57
POSCOADR PKX 35.72 0.05 ArchCapitalGroup ACGL 66.60 0.71 LibertyBroadbandC LBRDK 45.95 0.20
MoSys MOSY 0.82 -4.3 SeagateTechnology STX 26.25 -0.8 Loews L 35.97 0.43 PPG Ind PPG 92.09 -0.71 ShinhanFinADR SHG 31.57 0.56 UnitedMicroADR UMC 1.95 0.13 AthenaHealth ATHN 138.29 -4.61 LibertyGlobalClA LBTYA 33.73 -0.58 VeriSign VRSN 77.08 2.34
NatureSunshine NATR 8.11 0.1 ShilohIndustries SHLO 3.70 -2.6 Lowe's LOW 69.23 -0.32 PPL PPL 34.32 0.48 t SignetJewelers SIG 113.39 -5.01 UtdParcel B UPS 91.00 0.13 t AtlassianClA TEAM 20.39 -1.89 LibertyGlobalClC LBTYK 32.66 -0.39 VeriskAnalytics VRSK 71.21 0.37
NetScout NTCT 19.57 -21.1 ShireADR SHPG 163.16 -1.8 LuxotticaGroupADR LUX 60.60 -0.14 PVH Corp. PVH 69.30 SilverWheaton SLW 11.09 -0.16 t UnitedRentals URI 45.58-10.26 t VertxPharm VRTX 92.76 0.26
-0.15 Autodesk ADSK 45.27 -1.22 LibertyGlbLiLACAWi LILA 33.65 -0.23
NewLinkGenetics NLNK 23.48 -5.0 SkySolarADR SKYS 3.24 -4.3 LyondellBasell LYB 77.39 0.68 t PackCpAm PKG 48.88 -0.92 SimonPropertyGroup SPG 186.79 0.75 US Bcp USB 39.22 0.04 ADP ADP 80.75 0.27 LibertyGlbLiLACClC LILAK 35.35 -0.06 Viacom A VIA 47.31 0.73
NorwegianCruise NCLH 42.21 -6.1 SouthwestBancorpOK OKSB 15.08 3.0 M&T Bnk MTB 108.20 0.65 PaloAltoNetworks PANW 139.78 -6.57 SixFlagsEnt SIX 49.75 -0.18 t US Steel X 6.69 0.02 AvagoTech AVGO 126.37 4.02 LibertyInteractQVC QVCB 24.80 -0.15 Viacom B VIAB 44.54 0.76
NovatelWireless MIFI 0.84 -6.1 SparkTherapeutics ONCE 25.05 -7.2 MGMResortsIntl MGM 19.28 -0.19 ParkerHannifin PH 94.08 2.39 SkechersUSAClA SKX 27.00 -0.47 UnitedTech UTX 86.45 0.64 BaiduADR BIDU 156.94 -1.33 LibertyInteractQVC QVCA 25.17 0.32 VimpelComADR VIP 3.10 0.06
Novavax NVAX 4.80 -8.8 Splunk SPLK 43.80 -5.8 MPLX MPLX 29.39 1.06 PartnerRe PRE 140.30 0.05 SmithAO AOS 67.86 1.85 UnitedHealthGroup UNH 111.38 -0.95 BedBath BBBY 41.94 -1.12 LibertyVenturesA LVNTA 38.44 0.32 VodafoneGroupADR VOD 31.25 -0.35
Novocure NVCR 12.82 -7.8 StarzSeriesA STRZA 28.12 -3.5 MSCI MSCI 66.55 0.34 PearsonADR PSO 11.12 0.27 Smith&NephewADR SNN 32.95 -0.29 UniversalHealthB UHS 108.02 -3.06 Biogen BIIB 265.96 -7.30 LibertyMediaB LMCB 35.83 0.09 WPPADR WPPGY 105.58 1.07
Macerich MAC 76.03 -0.36 PembinaPipeline PBA 22.57 1.01 s Smucker SJM 126.29 1.85 UnumGroup UNM 28.31 0.56 t BioMarinPharm BMRN 73.38 -6.76 LibertyMediaA LMCA 35.74 -0.01 WalgreensBootsAll WBA 77.61 -0.84
OSISystems OSIS 48.19 -31.8 SurgeryPartners SGRY 15.11 -6.7
MacquarieInfr MIC 64.06 0.26 Pentair PNR 45.47 0.35 SnapOn SNA 157.23 -0.87 VEREIT VER 7.58 0.12 BlackBerry BBRY 6.87 -0.01 LibertyMediaC LMCK 34.80 0.18 WesternDigital WDC 45.69 2.02
O2MicroIntlADR OIIM 1.22 -2.4 TGTherapeutics TGTX 7.32 2.1 WholeFoods WFM 28.84 0.07
OncoMedPharm OMED 8.54 -5.8 Tessco Tech TESS 16.15 -2.1 Macys M 39.57 -0.72 PepcoHoldings POM 26.62 0.09 SOQUIMICH ADR SQM 15.56 0.34 VF VFC 60.07 1.32 Broadcom BRCM 54.50 0.13 LinearTechnology LLTC 41.29 0.07
MagelnPtnrs MMP 63.24 0.38 PepsiCo PEP 97.45 1.51 s SolarWinds SWI 59.86 0.35 VISAClA V 69.33 -1.58 CA CA 28.20 0.47 LinnEnergy LINE 1.23 0.12 WillisTowersWatson WLTW 112.58 1.87
Oncothyreon ONTY 1.37 -5.5 TranstnThera TTHI 1.28 -1.5 WynnResorts WYNN 63.15 0.92
1-800-FLOWERS.COM FLWS 6.11 -9.4 VWR VWR 23.11 -2.7 MagnaInt MGA 34.39 -0.64 PerkinElmer PKI 46.97 -1.64 t SonyADR SNE 20.29 -0.75 VailResorts MTN 119.99 -1.00 CBOE Holdings CBOE 64.51 0.23 lululemonathletica LULU 59.60 0.79
Mallinckrodt MNK 57.30 -5.06 Perrigo PRGO 143.23 -1.29 Southern SO 48.28 0.64 ValeADR VALE 2.27 -0.04 CDKGlobal CDK 44.12 0.58 Markit MRKT 28.47 -0.11 Xilinx XLNX 47.99 -0.15
OpGen OPGN 1.40 -11.4 Vapor VPCO 0.02 -7.5 Yahoo YHOO 28.75 -0.94
ManpowerGroup MAN 72.97 -1.09 PetroChinaADR PTR 59.50 0.51 SoCopper SCCO 24.98 0.24 ValeantPharmIntl VRX 86.12 -8.31 CDW CDW 37.31 -0.35 MarriottInt A MAR 59.21 -1.43
OpticalCable OCC 2.10 -19.4 VascularBiogenics VBLT 2.90 -6.3 ManulifeFinancial MFC 13.61 0.49 PetroleoBrasilADR PBR 3.20 SowestAir LUV 36.19 -1.10 ValeroEnergy VLO 64.54 -1.45 Yandex YNDX 13.13 -0.09
0.07 CH Robinson CHRW 63.05 -0.13 MarvellTch MRVL 8.38 0.19
Otonomy OTIC 14.24 -5.0 VascularSolutions VASC 24.58 -3.6 MarathonOil MRO 9.17 0.42 PetroleoBrasilADRA PBR/A 2.26 0.08 SovranSelfStorage SSS 108.65 -0.67 Valspar VAL 76.29 1.68 CMEGroupClA CME 87.09 0.37 Mattel MAT 27.18 0.21 ZionsBancorp ZION 22.15 0.37
Ovascience OVAS 5.45 -7.2 VertxPharm VRTX 81.98 0.3 MarathonPetroleum MPC 40.22 0.36 Pfizer PFE 30.20 -0.32 SpectraEnergy SE 27.11 0.54 Vantiv VNTV 44.35 0.28 CSX CSX 22.37 0.40 MaximIntProducts MXIM 32.23 0.18 Zynga ZNGA 2.42 0.01
PapaMurphy'sHldgs FRSH 9.25 -0.4 Videocond2hADR VDTH 5.98 7.9 MarineHarvestADR MHG 13.48 0.08 PhilipMorrisIntl PM 89.06 0.97 SpectraEnergyPtrs SEP 42.34 1.45 VarianMed VAR 75.13 -2.57 t
CadenceDesign CDNS 18.99 0.15 Medivation MDVN 33.09 -0.15
ParagonShipNts21 PRGNL 2.28 -16.4 VikingTherapeutics VKTX 1.78 4.9 Markel MKL 810.26-14.52 PhilippineLgDisADR PHI 45.88 1.51 SpectrumBrndsHldgs SPB 91.90 0.79 Ventas VTR 53.79 ... Carlyle CG 13.23 0.12 MelcoCrownEntADR MPEL 14.79 0.29
NYSE MKT
ParnellPharmaceutl PARN 2.91 -7.5 VoyagerTherapeutic VYGR 9.96 -5.3 Marsh&McLennan MMC 51.80 0.18 Phillips66 PSX 78.70 0.97 SpiritAeroSystemsA SPR 42.25 -0.15 Verizon VZ 49.01 -0.02 CaseysGenStores CASY 116.83 0.68 MercadoLibre MELI 96.86 -0.37 BritishAmTobADR BTI 108.19 2.13
People'sUtahBncp PUB 14.86 -1.6 WTBarclaysUSZero AGZD 47.28 -0.3 MrtnMarMat MLM 118.46 -1.54 s PiedmontNaturalGas PNY 59.02 0.61 SpiritRealtyCap SRC 10.21 0.22 VipshopHldgsADR VIPS 12.17 -0.37 Celgene CELG 97.21 -5.10 MichaelsCos. MIK 20.75 -0.18 CheniereEnergy LNG 29.63 0.46
Perceptron PRCP 6.40 -5.5 XenonPharms XENE 6.32 -3.6 Masco MAS 25.42 -0.35 PinnacleFoods PF 41.72 0.09 Sprint S 3.05 0.13 VMware VMW 45.00 0.56 Cerner CERN 55.96 -0.34 MicrochipTech MCHP 43.16 -0.17 CheniereEngyPtnr CQP 22.70 0.30
Premier PINC 30.25 -1.5 ZynerbaPharma ZYNE 6.20 -11.9 MasterCard MA 83.43 -1.38 PinnacleWestCap PNW 64.67 1.26 StJudeMedical STJ 52.75 -1.55 VornadoRealtyTrust VNO 86.94 -3.58 CharterComms CHTR 167.30 2.01 MicronTechnology MU 9.88 -0.51 ImpOil IMO 30.60 1.73
Futures Contracts | WSJ.com/commodities

Contract Open
Metal & Petroleum Futures Open High hilo Low Settle Chg interest
Contract Open
Open High hi lo Low Settle Chg interest Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
Copper-High (CMX)-25,000 lbs.; $ per lb. March 13.55
13.58 t 13.14 13.25 –.33 308,914
Feb 2.0600 2.0600 2.0390 2.0490 –0.0135 1,778 May 13.55
13.56 t 13.15 13.25 –.30 209,705
March 2.0600 2.0675 2.0370 2.0515 –0.0125 126,517 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
Gold (CMX)-100 troy oz.; $ per troy oz. March 25.40 25.40 t 25.30 25.30 –.01 2,271 Get instant access to markets data and business news when you’re on EXCLUSIVELY
Feb 1125.40 1125.70 1109.80 1115.60 –0.20 28,943 May 25.40 25.52 t 25.25 25.38 –.02 2,732
April 1126.20 1126.40 1110.20 1116.10 –0.20 248,722
the go. With real-time tickers, graphs and news alerts, it’s your instant FOR
Cotton (ICE-US)-50,000 lbs.; cents per lb.
June 1126.50 1126.50 1110.80 1116.50 –0.30 56,276 March 60.86 61.52 t 60.67 61.36 .50 112,957 markets briefing delivered straight to your iPhone. If it’s worth knowing, SUBSCRIBERS
Aug 1127.20 1127.20 1113.80 1117.20 –0.40 10,702 May 61.45 62.04 t 61.25 61.91 .46 40,402
Dec 1128.50 1128.50 1115.30 1118.70 –0.40 16,532 it’s in the What’s News App.
Dec'17 1125.00 1125.00 1125.00 1125.70 –0.20 5,897
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
March 124.00 134.25 123.55 133.05 8.80 8,773
Palladium (NYM) - 50 troy oz.; $ per troy oz. May 124.75 134.60 123.70 133.40 8.80 2,851
Feb 491.75 493.75 491.55 491.00 –9.55 15
March 500.00 505.60 490.35 492.00 –10.25 24,257
June 500.55 505.55 491.45 492.50 –10.20 1,306 Interest Rate Futures
Platinum (NYM)-50 troy oz.; $ per troy oz. Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
Feb 865.00 865.60 864.70 865.90 –14.20 22 March 159-280 160-210 159-040 160-020 2.0 529,418
April 883.80 886.90 863.10 867.90 –14.20 62,029 June 158-200 159-030 158-000 158-230 2.0 1,088
Silver (CMX)-5,000 troy oz.; $ per troy oz. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Feb 14.355 14.355 14.215 14.216 –0.224 110 March 128-280 129-030 128-170 129-010 5.5 2,880,985
March 14.510 14.540 14.070 14.232 –0.227 107,520 June 128-075 128-165 128-010 128-165 5.0 37,296
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
March 32.19 34.82 31.74 33.22 0.92 609,253 March 120-082 120-125 120-022 120-112 4.0 2,629,450
April 33.67 36.28 33.24 34.71 0.95 202,038 June 119-305 120-010 119-305 120-022 4.5 27,800
May 34.99 37.52 34.58 36.03 0.96 120,523 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
June 35.96 38.52 35.65 37.09 0.97 171,348
March 109-062 109-075 109-047 109-067 1.0 1,077,806
Dec 39.43 41.77 39.18 40.51 0.94 183,288
June 109-022 109-035 109-015 109-027 1.0 18,636
Dec'17 42.95 44.79 42.59 43.91 0.85 87,607
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
Feb 1.0220 1.0956 1.0142 1.0309 .0057 15,071 Jan 99.658 99.660 t 99.658 99.660 … 162,237
March 1.0349 1.1081 1.0246 1.0447 .0077 97,894 April 99.585 99.595 s 99.580 99.590 .015 124,290
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
Feb 1.0460 1.1309 1.0374 1.0790 .0333 12,104 March 105.219 105.516 105.078 105.406 .109 30,542
March 1.0672 1.1550 1.0531 1.1003 .0333 119,423 1 Month Libor (CME)-$3,000,000; pts of 100%
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Feb ... 99.5725 s ... 99.5725 .0025 1,619
March 2.145 2.231 2.088 2.182 .025 278,288 Eurodollar (CME)-$1,000,000; pts of 100%
April 2.216 2.277 2.163 2.239 .008 122,659 Feb 99.3750 99.3900 s 99.3750 99.3900 .0150 127,917
May 2.280 2.320 2.223 2.287 –.003 99,640 March 99.3500 99.3650 s 99.3450 99.3650 .0200 1,226,235
June 2.329 2.362 2.289 2.331 –.013 46,330 June 99.2800 99.2950 s 99.2600 99.2950 .0250 1,279,722
July 2.381 2.413 t 2.347 2.380 –.016 47,541 Dec 99.1150 99.1400 99.0850 99.1300 .0300 1,307,245
Oct 2.430 2.467 2.405 2.438 –.012 61,411
Agriculture Futures Currency Futures

Japanese Yen (CME)-¥12,500,000; $ per 100¥
Corn (CBT)-5,000 bu.; cents per bu. March .8438
.8451 .8410 .8425 –.0008 248,740
March 368.75 370.25 365.00 365.50 –3.75 621,800
June .8439
.8471 .8431 .8446 –.0008 1,191
May 373.75 375.00 370.00 370.50 –4.00 243,693
Oats (CBT)-5,000 bu.; cents per bu. Canadian Dollar (CME)-CAD 100,000; $ per CAD
March 200.75 201.25 196.75 199.00 –2.00 6,475 March .7095 .7170 .7081 .7118 .0036 156,638
May 206.75 207.25 203.00 205.25 –1.75 1,969 June .7100 .7171 .7084 .7120 .0036 3,709
Soybeans (CBT)-5,000 bu.; cents per bu. British Pound (CME)-£62,500; $ per £
March 882.50 884.25 867.25 867.75 –15.25 303,513 March 1.4243 1.4408 1.4239 1.4364 .0114 276,144
May 884.50 886.25 870.00 870.50 –14.75 145,686 June 1.4255 1.4411 1.4246 1.4368 .0113 755
Soybean Meal (CBT)-100 tons; $ per ton. Swiss Franc (CME)-CHF 125,000; $ per CHF
March 272.60 273.40 266.00 266.90 –5.60 171,887 March .9875 .9953 .9842 .9885 .0007 56,478
May 274.40 275.30 268.20 269.00 –5.50 83,677 June .9917 .9956 .9885 .9927 .0006 231
Soybean Oil (CBT)-60,000 lbs.; cents per lb. Australian Dollar (CME)-AUD 100,000; $ per AUD
March 30.88 31.24 s 30.53 30.69 –.18 162,606 March .7012 .7115 .6994 .7063 .0048 124,833
May 31.07 31.42 s 30.73 30.90 –.17 93,612 June .6977 .7084 .6966 .7033 .0047 582
Rough Rice (CBT)-2,000 cwt.; $ per cwt. Mexican Peso (CME)-MXN 500,000; $ per MXN
March 1123.50 1148.00 1116.00 1131.00 4.50 9,615 March .05400 .05480 .05397 .05433 .00045 114,537
May 1153.50 1176.00 1144.00 1159.50 4.50 2,688 June .05425 .05443 .05389 .05398 .00045 53,789
Wheat (CBT)-5,000 bu.; cents per bu. Euro (CME)-€125,000; $ per €
March 477.00 477.00 470.50 472.25 –4.25 207,363 March 1.0915 1.0980 1.0881 1.0967 .0050 400,433
July 488.25 488.25 482.25 484.00 –4.00 73,048 June 1.0947 1.1010 1.0914 1.0998 .0049 3,493
Wheat (KC)-5,000 bu.; cents per bu.
March ... ... ... 464.75 –2.75 106,907
July 488.75 489.25 484.25 485.75 –2.75 49,289 Index Futures
Wheat (MPLS)-5,000 bu.; cents per bu. Mini DJ Industrial Average (CBT)-$5 x index
March 496.50 498.00 494.75 495.25 –1.25 32,211 March 1586116055 15768 15972 121 60,849
REAL-TIME IN NO TIME.
May 501.00 503.25 499.50 500.25 –1.00 16,285 June 1580915965 15700 15894 121 641
Cattle-Feeder (CME)-50,000 lbs.; cents per lb. S&P 500 Index (CME)-$250 x index
Jan 160.725 161.475 160.725 161.300 .375 2,453 March 1879.00 1896.00 1866.00 1880.70 5.60 107,227
March 159.325 160.475 158.850 159.425 –.500 16,594 June ... 1887.00 1860.00 1872.50 5.50 2,409
Cattle-Live (CME)-40,000 lbs.; cents per lb. Mini S&P 500 (CME)-$50 x index
Feb 135.500 136.100 135.075 135.425 –.300 40,329 March ... 1902.50 1865.75 1880.75 5.75 2,897,826
April 134.750 135.250 134.150 134.525 –.725 112,817 June 1871.75 1894.25 1858.00 1872.50 5.50 24,840
Hogs-Lean (CME)-40,000 lbs.; cents per lb. Mini S&P Midcap 400 (CME)-$100 x index
Feb 65.775 66.125 s 64.575 65.300 –.075 27,442 March 1274.00 1287.20 1265.00 1268.10 –2.10 104,237
April 70.475 70.975 s 69.125 69.700 –.775 72,100 Mini Nasdaq 100 (CME)-$20 x index
Download the What’s News App today.
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. March 4150.3 4199.0 4106.8 4153.8 26.8 272,665
March 244.40 246.80 239.60 241.60 –1.10 4,283 June 4136.5 4188.3 4104.8 4148.0 26.8 489
May 244.00 244.90 238.90 240.70 –1.10 933
Mini Russell 2000 (ICE-US)-$100 x index
Milk (CME)-200,000 lbs., cents per lb. March 998.30 1013.10 995.80 997.20 –1.30 415,747
Jan 13.74 13.74 13.73 13.74 .02 3,266
Feb 13.93 13.95 13.82 13.82 –.08 4,923 Mini Russell 1000 (ICE-US)-$100 x index
March 1038.20 1046.90 1029.80 1037.50 3.60 7,404
Cocoa (ICE-US)-10 metric tons; $ per ton.
March 2,739 2,823 t 2,731 2,791 27 77,351 U.S. Dollar Index (ICE-US)-$1,000 x index
May 2,739 2,830 t 2,738 2,797 26 61,505 March 99.01 99.15 98.45 98.54 –.41 72,646
Coffee (ICE-US)-37,500 lbs.; cents per lb. June 99.16 99.24 98.56 98.64 –.41 2,035 © 2016 Dow Jones & Co., Inc. All rights reserved. 3DJ2115
March 118.20 120.05 117.80 119.15 .95 86,094
May 120.20 122.10 119.90 121.30 .95 46,847 Source: SIX Financial Information
Email: heard@wsj.com
HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard
Deutsche Bank’s Capital Struggle OVERHEARD Grounding

Profit Hopes
Deutsche Bank needs no might take but isn’t yet cer- Valeant Pharmaceuticals
Lost Ground
fresh capital, co-Chief Execu-
tive John Cryan said Thurs-
day. It may be tough to keep
Deutsche Bank's quarterly
tain enough to provision
against. That number still
may rise.
International shareholders
were reminded on Thursday
that political risk is hard to
At Amazon
revenues and profits
that vow. Net revenues Furthermore, litigation both predict and quantify. BY MIRIAM GOTTFRIED
Much isn’t clear about €12 billion costs hurt in another way Valeant fell nearly 9% in
Net profits
crumbling profits in the 9 because Deutsche has to in- New York after Democratic Amazon.com reported its
bank’s core business, espe- crease its charges for future presidential candidate Hillary highest quarterly profit ever.
cially toward the end of 6 operational risks based on Clinton made critical remarks Wall Street made the mis-
2015. This, along with a raft 3 the recent past fines. Mr. about the drug maker’s pric- take of expecting even more.
of provisions, charges and Cryan said the extra capital ing policies. “I’m going after The e-commerce giant re-
write-offs pushed the bank 0 this demanded was likely to them,” she said in a video ported fourth-quarter sales
to its first full-year net –3 offset any released by shed- posted to her campaign’s and earnings late Thursday
loss since 2008. But what is ding bad-bank assets. website, referring to Valeant that fell short of analyst ex-
clear is that the bank’s plans –6 Behind all this, the ques- by name. “This is predatory pectations. Investors haven’t
will leave it with a capital 2014 ’15 tion about poor performance pricing. It is unjustified. It is historically given much
ratio that only just squeaks Note: €1 billion = $1.089 billion in investment banking and wrong, and we are going to thought to profits at Ama-
over the hurdle it must clear Sources: the company; Getty Images Deutsche Bank headquarters in trading—still the biggest make sure it is stopped.” zon. They have instead fo-
in 2019. And that plan THE WALL STREET JOURNAL. Frankfurt, Germany part of Deutsche—is whether Drug companies like cused on top-line growth
doesn’t take account of addi- its revenues are shrinking Valeant have been under with the expectation the
tions to requirements likely Citigroup pointed out, the and more than twice that permanently, or whether it pressure from politicians and company’s heavy investment
to be in force by then. bank’s calculations don’t in- during a credit boom. This has just lost ground because regulators alike since last would pay off eventually.
Deutsche can estimate the clude countercyclical buffers, could make Deutsche’s capi- of the distraction of restruc- summer over pricing policies. But that had changed in
ratio it will need in 2019 be- which each country can ap- tal plan inadequate. turing. Management says it But Mrs. Clinton’s remarks recent quarters as Amazon’s
cause it knows what Euro- ply as lending risks rise in To its credit, Deutsche is is the latter, but there is come at a particularly sensi- rapidly growing cloud busi-
pean regulators say it needs their economies. taking the pain of restructur- scant evidence yet for this. tive moment for already em- ness, Amazon Web Services,
today and knows the size of While this is applied na- ing and litigation upfront Mr. Cryan said 2016 would battled Valeant. posted significantly higher
the surcharge it must hold tionally only to assets within and it will unload assets in be the peak year for restruc- Howard Schiller, the com- operating margins. Now
by then for being a systemi- that country, international its bad bank. turing pain but that it pany’s acting chief executive those profit hopes seem to
cally important bank. It will banks can in effect have it But, despite its huge €5.5 shouldn’t log another full- and board member, is set to have risen too far.
need to start 2019 with a applied by national regula- billion ($5.99 billion) in pro- year loss. It is critical this testify at a House Oversight There is no question Ama-
common equity Tier 1 capital tors in every country in visions for fines and penal- proves true. But even if it Committee hearing next zon has become more profit-
ratio of 12.25%. The bank’s which they operate. In nor- ties, Deutsche still has an- does, Deutsche may still week, where the company’s able. Operating income was
plan aims for a ratio of mal times, such demands other €2.2 billion in so- need another equity injec- drug pricing will be in focus. $2.2 billion in 2015 versus
12.5%. That is a thin margin. could add another percent- called contingent liabilities, tion to make it through. It already is—again. only $178 million in 2014.
But as Andrew Coombs of age point to capital needs, charges it can foresee it —Paul J. Davies And operating margins at
Amazon’s cloud business ex-
panded to 28.6% from 25% in
EXXON combined at today’s values

and have change left over.
Capital returns left less
for investing in its business.
Oil Patched
Change in share price since June
2014
highlighting that Exxon isn’t
quite so prescient, the XTO
deal added plenty of natural
gas at a time when the fuel
panies with a triple-A credit
rating and as a dividend
aristocrat, a group that has
managed to boost payouts
the third quarter. But AWS
still was only 11% of revenue
in the fourth quarter. Plus,
Amazon has a history of cut-
Continued from page C1 True, in 2014 Exxon marked was cheap and continued to annually for at least a quar- ting prices in the cloud busi-
washout a bit stronger. the 21st consecutive year in get cheaper. ter century. ness to expand market share.
Exxon Mobil –25%
Since 1970, through four which it added more re- Raising the odds of a cash But those constraints also Amazon also continues to
booms and four busts in pe- serves than it produced, av- Chevron –31% deal: Exxon’s preference for are attractions that have invest heavily in areas such
troleum prices, $100 in- eraging a replacement ratio BP –38% buybacks in recent years helped Exxon’s share price as same-day delivery. Oper-
vested in Exxon has turned of 123%. Much of that has Shell –45% over dividends gives it some hold up better than any ating costs rose 20.5% year
into $33,000, including divi- come through the checkbook financial flexibility. At its re- other large, integrated oil over year. Yet Wall Street is
ConocoPhillips –52%
dends, nearly four times the rather than the drill bit, cent pace, it has been paying company. And that has pre- predicting operating income
gain of the S&P 500. though. It has mostly done Anadarko –63% out just $2 billion annually served the value of its stock will roughly double in 2016
Part of that success has so when oil prices were low Source: FactSet to repurchase its own shares, as an acquisition currency. and climb by another 68% in
been due to Exxon’s pen- such as its merger with Mo- down from nearly $13 billion Targets discussed by ana- 2017. That underpins a
chant for shoveling cash to bil announced in 1999 and serve base isn’t as attractive in 2013. lysts include EOG Re- stratospheric valuation.
shareholders rather than in- the acquisition of XTO En- as it seems. While its cash flows are sources, Anadarko Petro- The trouble is, this is ag-
vesting aggressively during ergy in 2009. Of 25 billion barrels of oil much lower, too, Exxon has leum and Whiting gressive given Amazon’s his-
booms. So far this century, it With the industry in a rut equivalent at the end of the ability to write larger Petroleum, down between tory. Perhaps the fourth
has paid out over $380 bil- again, it is only natural to 2014, less than nine billion is checks than anyone in the 45% and 90% from their quarter’s results will be the
lion through buybacks and speculate that Exxon will in liquids and nearly five bil- industry. The main con- 2014 peaks. sobering reminder investors
dividends, enough to buy ri- once again pull the trigger. lion is in high-cost bitumen straints are retaining its sta- This tiger may be prepar- need. —Miriam Gottfried
vals BP, Chevron and Total Another reason is that its re- and synthetic crude. And, tus as one of three U.S. coming to pounce again.
Mutual Funds | WSJ.com/fundresearch Fund

Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret
Net YTD IntlGrAdml 60.92 -0.13 -9.2 WellsIAdml 58.65 +0.20 -1.3 TgtRe2045 16.54 +0.06 -7.0 VANGUARD INSTL FDS TotBdInst 10.74 +0.01 1.1
Explanatory Notes Data provided by Fund NAV Chg % Ret T BalInst 27.94 +0.08 -4.4
ITBondAdml 11.40 +0.01 1.4 WelltnAdml 60.69 +0.16 -4.5 TgtRe2050 26.50 +0.10 -7.0 TotBdInstPl 10.74 +0.01 1.1
Top 250 mutual-funds listings for Nasdaq-published share classes with DevMktsIndInst 10.94 +0.01 -7.5
net assets of at least $500 million each. NAV is net asset value. John Hancock Instl TIAA/CREF Funds ITIGradeAdml 9.69 ... 0.7 WndsrAdml 57.72 +0.18-10.6 TgtRetInc 12.24 +0.02 -1.7 TotIntBdIdxInst 31.99 ... 1.0
Percentage performance figures are total returns, assuming reinvestment DispValMCI NA ... NA EqIdxInst 13.87 +0.06 -8.0 LTGradeAdml 9.95 ... 0.8 VANGUARD FDS TotIntBdIxInv 10.66 ... 1.0 ExtndInst 56.27 -0.14-11.5 TotIntlInstIdx r 89.48 +0.33 -7.7
of all distributions and after subtracting annual expenses. Figures don’t JPMorgan Inst Class Tweedy Browne Fds MidCpAdml 133.87 -0.37-10.0 DivdGro 21.23 +0.08 -5.3 WellsI 24.21 +0.08 -1.3 GrwthInst 50.39 +0.29 -8.0 TotItlInstPlId r 89.50 +0.34 -7.7
reflect sales charges (“loads”) or redemption fees. NET CHG is change in MdCpVal 31.46 +0.12 -7.4 GblValue MorgAdml 70.47 +0.36 -8.7 GNMA 10.75 +0.01 1.0 Welltn InPrSeIn 10.38 +0.02 1.1 TotStInst 46.72 +0.19 -8.0
NAV from previous trading day. YTD%RET is year-to-date return. 3-YR 23.05 -0.09 -5.8 35.14 +0.09 -4.5
JPMorgan R Class MuHYAdml 11.39 +0.01 0.9 HlthCare r 196.59 -4.50-10.8 WndsrII InstIdx 173.06 +0.96 -7.3 VirtusFunds Cl I
%RET is trailing three-year return annualized. 30.84 +0.03 -7.9 InstPlus 173.07 +0.96 -7.3
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply.
CoreBond 11.67 +0.01 1.2 V MuIntAdml 14.38 +0.01 1.1 IntlVal 28.84
INSTTRF2025 18.14
+0.16 -7.2 VANGUARD INDEX FDS
+0.04 -4.9 InstTStPlus 42.27 +0.17 -8.0
EmMktI 8.50 +0.05 -5.1
JPMorgan Select Cls MuLTAdml 11.84 +0.01 1.0
j-Footnotes e and s apply. k-Recalculated by Lipper, using updated data. VANGUARD ADMIRAL 500 174.77 +0.97 -7.3 MidCpInst 29.57 -0.08-10.0
p-Distribution costs apply, 12b-1. r-Redemption charge may apply. s-Stock CoreBond 11.65 +0.01 1.1
500Adml 174.79 +0.98 -7.3
MuLtdAdml 11.07 +0.01 0.6 LifeCon 17.39 +0.02 -2.5
ExtndIstPl 138.86 -0.35-11.5 MidCpIstPl 145.85 -0.40-10.0
W
split or dividend. t-Footnotes p and r apply. v-Footnotes x and e apply. USLgCpCorPls 24.10 +0.06-10.1 MuShtAdml 15.83 +0.01 0.2 LifeGro 25.60 +0.08 -6.1
BalAdml 27.94 +0.08 -4.4 PrmcpAdml r 93.50 -0.79 -9.5 LifeMod 22.06 +0.05 -4.3 TotIntl 13.38 +0.05 -7.7 SmCapInst 47.50 -0.05-10.5 Western Asset
x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to
incomplete price, performance or cost data. NE-Not released by Lipper; data L CAITAdml 11.95 ... 1.0 REITAdml r 106.97 -0.82 -5.3 Primcp r 90.26 -0.76 -9.5 TotSt 46.69 +0.19 -8.1 STIGradeInst 10.59 ... 0.4 CorePlusBdI 11.43 ... 0.2
under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period. CapOpAdml r 104.99 -1.67-11.5 SmCapAdml 47.50 -0.05-10.5 PrmcpCor 18.97 -0.17 -8.9
Lazard Instl EMAdmr 24.75 +0.30 -9.4
Thursday, January 28, 2016 STBondAdml 10.50 +0.01 0.8 SelValu r 23.07 -0.20-10.8
Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret
EmgMktEq 12.65 +0.18 -5.9
Loomis Sayles Fds
EqIncAdml
ExplrAdml
58.54
65.79
+0.40 -5.5
-0.45-12.0
STIGradeAdml 10.59
TotBdAdml 10.74
... 0.4
+0.01 1.1
STAR
STIGrade
22.05
10.59
+0.01 -5.3
... 0.4
Borrowing Benchmarks | WSJ.com/bonds
LSBondI 12.47 +0.01 -3.1 ExtndAdml 56.27 -0.14-11.5
FreedomK2025 13.27 +0.05 -5.9 Lord Abbett A TotIntBdIdxAdm 21.32 ... 1.0 TgtRe2015 13.76 +0.03 -3.3
A FreedomK2030 13.30 +0.05 -7.2 ShtDurIncmA p 4.29 ... -0.2
GNMAAdml 10.75 +0.01 1.0 TotIntlAdmIdx r 22.38 +0.09 -7.7 TgtRe2020 26.02 +0.07 -4.2 Money Rates January 28, 2016
American Century Inv GrwthAdml 50.39 +0.29 -8.0 TotStAdml 46.71 +0.19 -8.0 TgtRe2025 14.86 +0.04 -4.9
FreedomK2035 13.59 +0.06 -7.9 Lord Abbett F
Ultra 32.10 +0.41 -8.3 HlthCareAdml r 82.92 -1.90-10.8 TxMIn r 10.93 +0.01 -7.5 TgtRe2030 26.18 +0.08 -5.6 Key annual interest rates paid to borrow or lend money in U.S. and
FreedomK2040 13.62 +0.06 -7.9 ShtDurIncm 4.28 ... -0.4
American Funds Cl A HYCorAdml r 5.44 +0.01 -1.4 ValAdml 29.51 +0.12 -7.3 TgtRe2035 15.79 +0.05 -6.2
Fidelity Invest
InfProAd 25.49 +0.06 1.1 WdsrllAdml 54.73 +0.06 -7.9 TgtRe2040 26.49 +0.09 -6.9 international markets. Rates below are a guide to general levels but
AmcpA p 23.88 +0.03 -8.0 AMgr50% 15.39 +0.04 -4.1 M don’t always represent actual transactions.
AMutlA p 32.15 +0.14 -5.0 Balanc 19.99 +0.07 -5.8 Metropolitan West
BalA p 22.91 +0.12 -3.9 BalancedK 19.99 +0.07 -5.8 TotRetBd NA ... NA Inflation
BondA p
CapIBA p
12.68
54.21
+0.01 0.9
+0.35 -2.9
BluCh
Contra
62.05
91.27
+0.65-10.0
+1.15 -7.7
TotRetBdI NA ... NA Cash Prices | WSJ.com/commodities Thursday, Jan. 28, 2016 Dec. index Chg From (%) Week
Latest ago
—52-WEEK—
High Low
TRBdPlan NA ... NA level Nov. '15 Dec. '14
CapWGrA 40.38 +0.14 -6.9 ContraK 91.21 +1.15 -7.7 MFS Funds Class A These prices reflect buying and selling of a variety of actual or “physical”
EupacA p 41.64 -0.13 -8.2 CpInc r 8.76 ... -4.0 ValueA p 30.67 +0.07 -6.5 commodities in the marketplace—separate from the futures price on an U.S. consumer price index Commercial paper
FdInvA p 47.05 +0.41 -7.2 DivIntl 32.14 -0.10 -8.3 30 to 270 days n.q. ... ... ...
MFS Funds Class I exchange, which reflects what the commodity might be worth in future All items 236.525 –0.34 0.7
GwthA p 37.53 +0.24 -9.1 DivIntlK r 32.08 -0.10 -8.3 ValueI 30.83 +0.06 -6.5 Core 243.779 –0.12 2.1
HI TrA p 9.11 +0.02 -2.1 GroCo 119.74 +0.28-12.3 MFS Funds Instl months. Commercial paper (AA financial)
ICAA p 31.48 +0.24 -5.7 GrowCoK 119.61 +0.28-12.3 90 days 0.54 0.55 0.64 0.06
IntlEq 18.93 -0.09 -7.9 Thursday Thursday International rates
IncoA p 19.41 +0.11 -4.1 InvGrBd 11.07 +0.01 0.6 Mutual Series Cotton,1 1/16 std lw-mdMphs-u 0.6161
N PerA p 33.06 +0.13 -8.2 LowP r 44.19 +0.07 -7.5 GlbDiscA 26.75 -0.03 -7.3 Energy Euro commercial paper
NEcoA p 32.14 -0.17-10.6 Cotlook 'A' Index-t *68.20 Week 52-Week
LowPriStkK r 44.15 +0.06 -7.5 GlbDiscz 27.22 -0.03 -7.3 Propane,tet,Mont Belvieu-g 0.3545 Latest ago High Low 30 day n.q. n.q. -0.02 -0.12
NwWrldA 45.98 +0.15 -8.0 Hides,hvy native steers piece fob-u 71.500
MagIn 81.72 +0.69 -8.6 Butane,normal,Mont Belvieu-g 0.5337 Two month n.q. n.q. -0.01 -0.09
SmCpA p 38.81 -0.09-11.0 Wool,64s,staple,Terr del-u,w n.a.
TxExA p 13.16 ... 0.8
OTC 71.45 +0.51-14.4 O NaturalGas,HenryHub-i 2.120 Prime rates Three month n.q. n.q. 0.01 -0.08
Puritn 19.22 +0.09 -5.5 NaturalGas,TranscoZone3-i 2.110 Grains and Feeds Four month n.q. n.q. 0.02 0.00
WshA p 35.83 +0.24 -6.8 Oakmark Funds Cl I U.S. 3.50 3.50 3.50 3.25
SrsInvGrdF 11.07 +0.01 0.5 Five month n.q. n.q. 0.03 0.01
AMG Managers Funds EqtyInc 26.84 +0.05 -6.1 NaturalGas,TranscoZone6NY-i 2.270 Barley,top-quality Mnpls-u n.a. Canada 2.70 2.70 2.85 2.70
StratInc 10.00 +0.01 -1.2 Six month n.q. n.q. 0.04 0.02
YacktmanFd 20.08 +0.05 -3.8 Oakmark 56.66 +0.26 -9.9 NaturalGas,PanhandleEast-i 1.920 Bran,wheat middlings, KC-u 108 Japan 1.475 1.475 1.475 1.475
TotalBond 10.27 +0.02 0.3
AQR Funds OakmrkInt 19.13 -0.15-10.4 NaturalGas,Opal-i 1.940 Corn,No. 2 yellow,Cent IL-bp,u 3.6100
Fidelity Selects
Old Westbury Fds NaturalGas,MarcellusNE PA-i 1.300 Corn gluten feed,Midwest-u,w Policy Rates Libor
MgdFutStrI NA ... NA 105.9
Biotech r 169.96 -6.74-28.0 0.42620 0.42530 0.43060 0.16950
Artisan Funds LrgCpStr 11.59 +0.01 -7.1 NaturalGas,HaynesvilleN.LA-i 2.060 Corn gluten meal,Midwest-u,w 460.3 Euro zone 0.05 0.05 0.05 0.05 One month
Health r 181.31 -4.64-12.9 Oppenheimer Y Coal,C.Aplc.,12500Btu,1.2SO2-r,w 42.250 Cottonseed meal-u,w Three month 0.61560 0.62130 0.62430 0.25210
Intl Inv 26.28 -0.23 -8.4 243 Switzerland 0.50 0.50 0.50 0.50
Fidelity Spartan
DevMktY 27.40 +0.20 -8.6 Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 9.700 Hominy feed,Cent IL-u,w 95 Britain 0.50 0.50 0.50 0.50 Six month 0.86575 0.85325 0.86575 0.35740
500IdxInv 66.58 +0.37 -7.3 1.15105 1.14045 1.17800 0.61815
B 500IndInst 66.59 +0.37 -7.3
IntGrowY 33.54 -0.04 -6.5
Metals Meat-bonemeal,50% pro Mnpls-u,w n.a. Australia 2.00 2.00 2.50 2.00 One year
BlackRock Funds A Oats,No.2 milling,Mnpls-u 2.5400
Fidelity Spartan Adv P Gold, per troy oz Rice, 5% Broken White, Thailand-l,w 357.00 Overnight repurchase Euro Libor
GlblAlloc p 16.97 ... -4.9 500IdxAd 66.59 +0.37 -7.3 Engelhard industrial 1122.55 Rice, Long Grain Milled, No. 2 AR-u,w 23.00 0.51 0.47 0.51 0.07 One month -0.231 -0.226 -0.004 -0.231
BlackRock Funds C ExtMktAd r 44.44 -0.11-11.5 Parnassus Fds Engelhard fabricated 1206.74 Sorghum,(Milo) No.2 Gulf-u
U.S.
Three month -0.174 -0.156 0.032 -0.174
7.5538
GlblAlloc t 15.46 ... -4.9 IntAd r 33.18 -0.02 -7.7 ParnEqFd 34.42 +0.10 -6.9 Handy & Harman base 1114.00 SoybeanMeal,Cent IL,rail,ton48%-u Six month -0.097 -0.066 0.095 -0.097
275.90 U.S. government rates
BlackRock Funds Inst TotMktAd r 53.95 +0.23 -8.0 PIMCO Fds Instl Handy & Harman fabricated 1236.54 Soybeans,No.1 yllw IL-bp,u One year 0.014 0.043 0.237 0.014
EqtyDivd 19.52 +0.09 -7.0 AllAsset NA ... NA 8.6400
First Eagle Funds LBMA Gold Price AM *1116.50 Discount
Wheat,Spring14%-pro Mnpls-u 5.9275
GlblAlloc 17.07 ... -4.8 GlbA 48.67 +0.11 -5.2 ShortT NA ... NA LBMA Gold Price PM *1116.25
Wheat,No.2 soft red,St.Louis-bp,u Euro interbank offered rate (Euribor)
HiYldBd 6.99 +0.01 -1.5 TotRt 10.10 +0.01 0.5 Krugerrand,wholesale-e 4.4450 1.00 1.00 1.00 0.75
FMI Funds 1160.64
Wheat - Hard - KC (USDA) $ per bu-u 4.4475 One month -0.229 -0.230 0.003 -0.231
StratIncOpptyIns 9.69 +0.01 -0.6 LgCap 17.49 +0.03 -6.0 PIMCO Funds A Maple Leaf-e 1171.80
Wheat,No.1soft white,Portld,OR-u Federal funds
TotRetA 10.10 +0.01 0.5 American Eagle-e 1171.80 5.3363 Three month -0.160 -0.146 0.055 -0.160
FPA Funds
D FPACres 28.99 +0.07 -6.7 PIMCO Funds D Mexican peso-e 1353.56
Food
Effective rate 0.4000 0.4000 0.4000 0.0600 Six month -0.083 -0.065 0.134 -0.083
Davis Funds A FrankTemp/Frank Adv IncomeFd NA ... NA Austria crown-e 1096.90 High 0.5600 0.5600 0.5900 0.3100 One year 0.022 0.042 0.271 0.022
Beef,carcass equiv. index 0.3000 0.3500 0.3500 0.0100
NYVen A 27.73 +0.29-10.2 IncomeAdv 1.98 +0.02 -4.3 PIMCO Funds Instl Austria phil-e 1171.80
choice 1-3,600-900 lbs.-u 204.05
Low
Value 52-Week
Dimensional Fds FrankTemp/Franklin A IncomeFd NA ... NA Silver, troy oz. Bid 0.3800 0.3500 0.5500 0.0300 Latest Traded High Low
select 1-3,600-900 lbs.-u 198.60
5GlbFxdInc 11.00 ... 0.9 CA TF A p 7.56 ... 0.8 PIMCO Funds P Engelhard industrial 14.4000
Broilers,dressed 'A'-u 1.1250
Offer 0.5000 0.3900 0.5600 0.0500
EmgMktVa 18.63 +0.22 -8.7 Fed TF A p 12.44 ... 0.8 IncomeP NA ... NA Engelhard fabricated 17.2800
Broilers, National comp wghtd-u,w 0.8764
DTCC GCF Repo Index
-0.02 -8.2 Price Funds Handy & Harman base 14.2600 Treasury bill auction
EmMktCorEq 14.55 +0.15 -7.7 Growth A p 67.35 Butter,AA Chicago 2.2000 Treasury 0.516 75.600 0.639 0.059
IntlCoreEq 10.50 +0.03 -7.8 IncomeA p 1.99 +0.01 -4.8 BlChip 64.92 +0.30-10.3 Handy & Harman fabricated 17.8250
Cheddar cheese,bbl,Chicago 143.00
4 weeks 0.295 0.250 0.295 0.000 MBS 0.540 110.300 0.705 0.075
IntSmCo 15.85 +0.05 -7.9 RisDv A p 45.37 +0.25 -5.0 CapApp 23.94 -0.06 -4.4 LBMA spot price £9.4990
Cheddar cheese,blk,Chicago 146.00
13 weeks 0.305 0.255 0.305 0.000
IntSmVa 17.05 +0.02 -8.7 EmMktS 25.97 +0.24 -8.9 (U.S.$ equivalent) 13.5800 26 weeks 0.415 0.370 0.585 0.065 Open Implied
FrankTemp/Franklin C Milk,Nonfat dry,Chicago lb. 72 Settle Change Interest Rate
Dimensional Fds Income C t 2.02 +0.02 -4.3 EqInc 26.29 +0.16 -7.6 Coins,wholesale $1,000 face-a 12853
EqIndex 50.95 +0.28 -7.3 Other metals Cocoa,Ivory Coast-w 3173
US CoreEq1 15.74 +0.06 -8.3 FrankTemp/Temp A Coffee,Brazilian,Comp 1.2397 Secondary market DTCC GCF Repo Index Futures
US CoreEq2 14.92 +0.04 -8.7 GlBond A p 11.25 +0.07 -2.6 Growth 47.88 +0.27-10.8 LBMA Platinum Price PM *876.0
Coffee,Colombian, NY 1.3701 Treasury Jan 99.505 unch. 6962 0.495
-1.80-15.3 Platinum,Engelhard industrial 886.0 Fannie Mae
US Small 25.73 +0.10 -9.3 Growth A p 19.78 -0.12 -9.7 HelSci 58.35
Eggs,large white,Chicago-u 1.3850 Treasury Feb 99.525 -0.010 7027 0.475
US SmCpVal 27.32 +0.18-10.4 FrankTemp/Temp Adv HiYield 6.04 +0.01 -1.8 Platinum,Engelhard fabricated 986.0 30-year mortgage yields
+0.07-11.6 Palladium,Engelhard industrial 504.0 Flour,hard winter KC 13.20 Treasury Mar 99.475 unch. 4483 0.525
USLgVa 27.95 +0.07 -9.3 GlBondAdv p 11.21 +0.07 -2.5 InstlCapG 25.55
Hams,17-20 lbs,Mid-US fob-u n.a. 30 days 3.308 3.314 3.750 3.052
Dodge & Cox Intl G&I 12.09 +0.01 -7.5 Palladium,Engelhard fabricated 604.0
60 days 3.341 3.346 3.788 3.105
-0.01 -8.4 Aluminum, LME, $ per metric ton *1508.0 Hogs,Iowa-So. Minnesota-u 61.32 Weekly survey
Balanced 88.43 +0.20 -6.3 G IntlStk 14.00
Pork bellies,12-14 lb MidUS-u n.a.
Income 13.26 +0.01 -0.2 GMO Trust Class IV MCapGro 65.39 -0.49-10.8 Antimony-d 2.6000 Latest Week ago Year ago
MCapVal 23.26 +0.09 -6.7 Copper,Comex spot 2.0490 Pork loins,13-19 lb MidUS-u 1.0992 Other short-term rates
Intl Stk 32.25 -0.04-11.6 IntlEq 18.68 +0.07 -7.0 Steers,Tex.-Okla. Choice-u
-0.30-11.6 Lead,NA solder-d 103.953 n.a.
Stock 147.34 +0.49 -9.5 N Horiz 37.53 Week 52-Week Freddie Mac
N Inc 9.41 +0.01 0.7 Iron Ore, 62% Fe CFR China-s 41.5 Steers,feeder,Okla. City-u,w 180.67
DoubleLine Funds H Latest ago high low 30-year fixed 3.79 3.81 3.66
TotRetBdI NA ... NA OverS SF r 8.30 ... -7.7 Shredded Scrap, US Midwest-s,w 189
3.07 3.10 2.98
+0.03 -4.2 Stainless steel scrap,US-d 1560 Fats and Oils 15-year fixed
TotRetBdN NA ... NA Harbor Funds R2015 13.10
Corn oil,crude wet/dry mill-u 40.0000 Call money Five-year ARM 2.90 2.91 2.86
CapApInst 54.49 +0.61-10.4 R2020 Steel, HRC USA, FOB Midwest Mill-s 400
18.67 +0.04 -5.2 2.25 2.25 2.25 2.00 One-year ARM n.a. n.a. 2.38
Tin,NA solder-d 869.019 Grease,choice white,Chicago-u 0.2300
F IntlInst r 55.16 -0.19 -7.2 R2025 14.06 +0.03 -6.0
Zinc,NA-d 79.872 Lard,Chicago-u n.a.
Fidelity Advisor A R2030 20.36 +0.04 -6.6
NwInsghtA p 24.05 +0.28 -8.0
I R2035 14.64 +0.03 -7.3 Fibers and Textiles
Soybean oil,crude;Centl IL-u 0.2957 Notes on data:
Tallow,bleach;Chicago-u 0.2475 U.S. prime rate is effective December 17, 2015. Discount rate is effective December 17, 2015. U.S.
Fidelity Advisor I Invesco Funds A R2040 20.82 +0.04 -7.8 Burlap,10-oz,40-inch NY yd-n,w
0.5400 Tallow,edible,Chicago-u n.a. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks;
NwInsghtI 24.50 +0.28 -8.0 EqIncA 8.95 ... -7.0 SmCapStk 34.73 ...-10.0
Other prime rates aren’t directly comparable; lending practices vary widely by location; DTCC GCF
Fidelity Freedom Value 28.54 -0.06 -8.7 Repo Index is Depository Trust & Clearing Corp.'s weighted average for overnight trades in applicable
FF2020 13.76 +0.04 -5.3 J KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; D=Ryan's Notes;
E=Manfra,Tordella & Brooks; G=ICE; I=Natural Gas Intelligence; L=livericeindex.com; M=midday; N=nominal; CUSIPs. Value traded is in billions of U.S. dollars. Futures on the DTCC GCF Repo Index are traded on
FF2025 11.70 +0.04 -5.9 John Hancock Class 1 S n.a.=not quoted or not available; R=SNL Energy; S=The Steel Index; T=Cotlook Limited; U=USDA; W=weekly, NYSE Liffe US.
FF2030 14.11 +0.05 -7.2 LSBalncd 13.44 +0.03 -5.6 Schwab Funds Z=not quoted. *Data as of 1/27 Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information;
FreedomK2020 12.81 +0.04 -5.3 LSGwth 13.74 +0.03 -7.3 S&P Sel 29.26 +0.16 -7.3 Source: WSJ Market Data Group General Electric Capital Corp.; Tullett Prebon Information, Ltd.
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Friday, January 29, 2016 | D1
THE AMERICAN
INVASION OF
CUBA Artists, entertainment companies and

tourists are leading the charge toward a
new era in U.S.-Cuba relations; ‘Culture
always moves faster than government’
BY ELLEN GAMERMAN AND KELLY CROW
THE U.S. INVASION OF CUBA has begun.

Following President Obama’s steps to ease
travel and trade restrictions on Cuba last year,
the island has been overwhelmed by cultural visitors
on the hunt for the next exotic destination. American
art, entertainment and technology executives are scour-
ing the country for new locations to shoot, new TV
shows to pitch, new artists to market. Visitors with cul-
turally enriching itineraries and bulging money belts
are packing into tour buses that wobble over Havana’s
torn-up streets.
At 331 Art Space in Havana, visitor traffic has got-
ten so heavy that it’s cutting into work hours. Adrian
Fernandez, who shares the space with two other art-
ists, said that in the past six months the studio has re-
ceived guests from Facebook, Google, UPS, the Museum
of Modern Art and the Smithsonian. “At least we try to
have the mornings free—then people come in the after-
noon—but as we have more demand that has gotten
harder,” said the 31-year-old photographer.
Moves by art and culture travelers to reconnect
with Cuba are far outpacing efforts to reopen business
with America’s former Cold War foe. While it could
take years for Congress to formally lift the trade em-
bargo in place since the 1960s, artists and other cul-
tural arbiters are leading the charge toward a new era
in U.S.-Cuba relations.
“Culture always moves faster than the government;
laws only change because the changes are already hap-
pening in real life, or need to be,” said Sara Alonso
Gómez, an independent curator specializing in contem-
porary art from Latin and Caribbean countries.
Authorized U.S. visits to Cuba rose 50% last year, Jef-
frey DeLaurentis, the head of the U.S. embassy in Ha-
vana, said in a briefing last month. More Americans are
Please turn to the next page
CUBAN CRUSH Clockwise from top middle: The exterior and

interior of Galleria Continua during its opening in
November; tourists at Callejon de Hamel; Sarao’s bar on a
recent Saturday night; crowds outside Fábrica de Arte
Cubano; outdoor sculpture by Rafael M. San Juan.
CLOCKWISE FROM TOP: LORENZO FIASCHI/GALLERIA CONTINUA, HABANA (2); LISETTE POOLE FOR THE WALL STREET JOURNAL (3); ERNESTO JIMÉNEZ/FAC; BUENA VISTA IMAGES/GETTY IMAGES; BELOW: UNIVERSAL PICTURES
MOVIES a kidnapped star (George Clooney). But the film, which opens Feb. 5, is driven by
The Coens
five wildly varied movies-within-the-movie that the fictional characters are mak-
ing. To create these elaborate set pieces, the Coen brothers drew on their life-
long knowledge of old movies and meticulously researched more.
As a dunderheaded actor named Baird Whitlock, Mr. Clooney is a Roman sol-
Conjure the
dier in a Bible epic, “Hail, Caesar! A Tale of the Christ.” Scarlett Johansson
wears a mermaid’s tail as an Esther Williams type in a swimming movie with
Busby Berkeley-inspired choreography. Playing a matinee idol, Channing Tatum
leaps on tabletops as a sailor dancing his way through a Gene Kelly-
Classics
style musical. The Coens stayed faithful to the period styles,
while approaching them with affectionate tweaks. They also
faced plenty of logistical challenges.
“We didn’t want [the sequences] to be spoofs,” Joel Coen
said of the films the fictional characters are making. “We
wanted them to feel like a slice of a movie that you might
No country for timid filmmakers: For ‘Hail, Caesar!’ the have actually seen in the period, that was never made.”
brothers needed to design six movies in one The brothers had to recapture some old moviemaking
strategies. “It sounds stupid to say, ‘Nobody does that
anymore,’ but nobody does that anymore,” Joel Coen
BY CARYN JAMES
said. The tank the brothers used for the swimming
scenes was actually the one Williams used on an
FOR MORE THAN 30 YEARS, Joel and Ethan Coen have created MGM soundstage (now owned by Sony).
droll spins on classic genres, from the fresh noir of their first “Synchronized swimmers nowadays do some-
film, “Blood Simple,” to the intense newfangled western of thing completely different,” Joel Coen said. “We
“No Country for Old Men” and the goofy, musical Depression- were saying: We don’t want you to do any of the
era “O Brother, Where Art Thou?” The Coen brothers’ love of stuff that’s acrobatic,” asking instead for routines
movies finally takes center stage in “Hail, Caesar!” Please turn to page D4
Set in early-1950s Hollywood, the comedy follows a fixer at
the fictional Capitol Studios (Josh Brolin) who tries to retrieve GEORGE CLOONEY plays a ‘gasbag’ in ‘Hail, Caesar!’
D2 | Friday, January 29, 2016 THE WALL STREET JOURNAL.
CUBA
Continued from the prior page
on the way: The State Department
recently announced an arrange-
ment with Cuba to permit direct
commercial flights to the island, a
move that would allow people to
book their own travel with a few
clicks online. This spring, Carnival
plans to send the first U.S. cruise
ship to Cuba in more than 50 years.
Tourists and cultural industries
are anxious to see Cuba before it
changes and eager to make business
deals when it does. Universal Pic-
tures is seeking U.S. and Cuban gov-
ernment approval to shoot the next
“Fast & Furious” film in Cuba, ac-
cording to people familiar with the
plans—a location Hollywood has all
but abandoned since 1959 when Fi-
del Castro came to power. The lux-
ury brand Chanel has announced it
will present its cruise collection in
Havana in May. And Cubans work-
ing in the entertainment industry HAVANA HOTSPOTS From top,
say the Rolling Stones are trying to A tour group at the Merger studio;
stage a concert in Havana perhaps ‘House of Lies’ starring Don Cheadle
at the end of the band’s Latin on location; artist Adrian
America tour in March. (A represen- Fernandez with his work;
tative for the band said no show Visitors inside the Merger.
has been confirmed.)
The island is seducing art and demned the reopening of the U.S.
entertainment VIPs. Architect and Cuban embassies last summer.
Frank Gehry was spotted sailing Mr. Rubio is calling for a reversal of
into Havana last month and get- the administration’s recent policy
ting a rock-star reception at a lec- changes.
ture for 150 Cuban architects. The logistics around cultural vis-
“Black Swan” actress Natalie Port- its are daunting. Americans doing
man recently hung out in Havana business in Cuba must carefully
with 94-year-old Cuban ballet leg- navigate U.S. and Cuban laws to
end Alicia Alonso. Painter Frank avoid violating the embargo. They
Stella is planning to speak in the bring their own supplies, from fork-
city in March. The hosts of the lifts to paper clips. One Cuban film
U.S. version of the hit British TV executive said there are just six
series “Top Gear” recently tore “not so bad” trucks for transport-
around the streets outside Havana ing movie equipment in the whole
in cars filled with jet fuel. country—and maybe a dozen more
Matthew Carnahan, creator of in worse condition—and any major
Showtime’s “House of Lies,” was Hollywood production that comes
willing to show the Cuban govern- to the island will not have enough
ment early drafts of his script if it vehicles to shuttle all the Cuban
meant he’d be allowed to shoot the crew members who don’t
season finale in Havana this month. own cars. Artists run out
Cuban officials, he learned, were of paint, paper and canvas.
only too happy to oblige. “At every Electrical equipment for
point they were like, ‘This is great, concerts is dangerously NUTS AND BOLTS
what’s next,’ ” said Mr. Carnahan, outdated. Nobody can find
whose team got all its U.S. and Cu-
ban permissions within about four
nails.
And then there is the Cuba on
months. “I’m kind of shocked that
it all worked out.”
Los Angeles producer Ross Bre-
bureaucracy. One morning
last week, a Los Angeles-
based Fox Sports crew
the Quick
itenbach recently returned from a making a Cuban baseball First step
Cuba trip with at least three ideas documentary ran into a Cuba is far easier to get to now,
for new reality and scripted shows. snag outside a Havana but tourism remains illegal for
“I’m frantically trying to put to- school, a squat building in U.S. citizens, so a week on the
gether a bunch of pitches,” said Mr. the shadow of a power beach with a coconut drink is off
Breitenbach, whose credits include plant. The crew had gotten limits. The White House has
“The Bachelor,” “Big Brother” and permission from a baseball sped up the process by expand-
“Brat Camp.” He saw the potential trainer to shoot inside a ing travel authorizations and sim-
for fabulous shots everywhere: classroom, but the request plifying paperwork. U.S. cultural
“The buildings are wonderfully never made it up the chain travelers still must fit into one of
weathered—we would pay thou- of command. Complicating 12 categories for legal trips to
sands of dollars to get that effect matters, one government Cuba, including “people to people”
on a set for a scripted show here.” ministry controlled the exchanges that bring Americans
As Americans gulp down Cuban half of the school with the baseball ruining the best dilapidated homes Late last year, Italy’s Galleria into contact with Cubans.
culture like so many cold mojitos, field and another oversaw the half by investing in extensive renova- Continua became the first Euro-
the island is struggling to keep up. with the classrooms. tions. Those homes are an essen- pean gallery allowed to operate an Get a visa
Waits at the main airport for U.S. Negotiations began. The base- tial part of Cuban tourism: Ameri- exhibition space in Havana, al- At the moment, U.S. government-
flights routinely last more than ball trainer lit a cigarette. Eventu- cans can be seen posing in front of though the government still for- authorized tour operators offer
three hours and Havana’s rooms in ally, Boris Crespo, a Cuban produc- the crumbliest buildings, snapping bids Continua from making art the easiest route to a Cuban
hotels and guesthouses often are tion manager trying to negotiate pictures for their Facebook friends. sales in Cuba. “Our opening was a tourism visa, providing the docu-
booked solid (the most recent what he called “this embarrassing Cuba has two currencies, one hit,” said gallery co-founder mentation with the plane tickets
available figures from the Cuban situation,” sent the crew to a dif- for residents and one for visitors. Lorenzo Fiaschi, adding that as and charging for the package.
government put the number of ferent school, a more photogenic Prices for foreigners are soaring. many as 5,000 people showed up Book a flight
rooms at nearly 9,700, though building painted swimming-pool Corey McLean, a 28-year-old Los the first night.
LISETTE POOLE FOR THE WALL STREET JOURNAL (3); MICHAEL DESMOND/SHOWTIME (‘HOUSE OF LIES’)
Most Americans fly to Cuba on

some experts estimate only about blue with a portrait of Fidel Castro Angeles filmmaker shooting a Cu- Such stories rankle artists who U.S. charter flights; tickets can
3,500 of them are usable). Around staring from behind the bars of the ban surfing documentary, said the want similar opportunities ex- be purchased through travel
Havana, hotel lobbies are jammed ground-floor windows. Havana house he and two collabo- tended to Cubans. Under current agencies and tour operators.
with Americans squinting at 24- Laws have long allowed Cuban rators were supposed to rent for laws, Cuban nationals are unable New non-stop charters now fly
digit login and password codes on visual artists to sell their work $140 a week suddenly went up to to own commercial galleries; only to Havana from New York and
one-hour Wi-Fi cards that don’t al- abroad, making them a wealthy $820, the amount paid by a differ- government-run galleries can sell Los Angeles, and regularly
ways work. class that has nudged Cuba toward ent film crew that just left. “There art. “There are great Cuban deal- scheduled commercial flights on
Adventurous tourists and artists private enterprise. Performers are are so many people throwing ers who are working for dollars a American carriers are expected
from the U.S. have been going to among the country’s best traveled around so much money, people are day but selling art worth millions. to begin later this year.
Cuba for years. But citizens after decades like, ‘Let’s just charge more,’ ” he When do they get to start their
what was a quiet of foreign tours. Vi- said. own galleries?” asked artist Marco Bring cash
trickle in the last 12 ‘There are so sual artists, often Some Cubans are trying to keep A. Castillo. He and Dagoberto Rod- Credit and debit cards are all
months has turned stylishly dressed with the American onslaught at bay. The riguez comprise Los Carpinteros, a but impossible to use in Havana
into a torrent because
many people accessories like Ray- internationally known artists Los team whose work has gone for at the moment, thought the sit-
of the administra- throwing Bans and the latest Carpinteros and the up-and-coming more than $85,000 at auction. uation is loosening up. Bring
tion’s recent moves to around so much iPhones, are renovat- duo Celia & Yunior do not invite On a recent afternoon, about a U.S. dollars and convert them to
ease relations. All ing their homes, buy- cruise-ship passengers and other dozen New York tourists filed into Cuban currency upon arrival.
that could change, ex- money, people ing new properties anonymous crowds for studio tours. a Havana studio that serves as a
Save the paperwork
perts note, after Mr. are like, ‘Let’s and creating art pro- Other artists place restrictions on de facto gallery for three artists
The U.S. requires Americans to
Obama leaves office grams and art spaces. guests or build entirely new show- known collectively as the Merger.
in 2017. Republican just charge Movie location rooms—cocktail-and-schmooze ar- “Come on in, make yourself at hold onto receipts and other
presidential candi- more.’’ scouts have started eas that get Americans to buy art- home, don’t be shy,” Cuban guide travel documents for five years
dates Marco Rubio to complain that work the same way vineyard tours Alain Rubio told the group. A in case they need to offer proof
and Jeb Bush con- wealthy Cubans are encourage visitors to buy wine. woman asked to see the watercol- of their compliance with U.S.
ors, another tried on a $60 buf- trade and travel laws.
falo-horn necklace in the gift shop,
others flipped through a rack of
canvases. The artist Mayito—the one of the U.S.’s biggest collec-
only member of the Merger not in tions of Cuban art. “I find many
the U.S. that day—stood on the people in the art world still ha-
back porch with a glass of rum, ven’t been but want to go, and
watching people examine his their vision of Cuban contempo-
$50,000 stainless-steel sculptures rary art is still Carmen Miranda
in the gravel courtyard below. with a guitar and a palm tree,” he
A few minutes later, a bus pulled said. “They have no idea it’s really
up holding travelers from Iowa. “We a different world.”
wanted to come here before it got Major collectors like Miami’s
commercialized,” said Heidi Chico, Ella Cisneros, who returned to her
president of a vending-machine native Cuba six years ago, are em-
company in Des Moines. An assis- boldening other art-world insiders
tant for the Merger in a silk blouse to come and learn more. On the
and pearls quoted prices of the art- eve of last year’s Havana Biennial,
work in fluent English—several visi- Ms. Cisneros threw a party that
tors remarked on the $45,000 urinal Ohio collector Ron Pizzuti said ri-
in the shape of a naked woman— valed any in Beverly Hills. At her
and answered their questions. modern Havana home with a
Many American collectors have Range Rover parked out front and
an antiquated view of Cuban art, a 17-piece band playing, guests
said Howard Farber, a Miami- dined on “probably more food
based collector and former real- than most Cubans see in a month,”
estate developer who has amassed Mr. Pizzuti said.
THE WALL STREET JOURNAL. NY Friday, January 29, 2016 | D3
MORGENSTERN ON FILM
Casey
Affleck
REVIEW
JOE MORGENSTERN UNMOORED ‘HOURS’: the scene is so laggardly that the touchingly
gets lost.
The physical production, by contrast, is
IMPERFECT
extraordinary, with an elaborate re-creation
of the Pendleton’s amputated stern.
“THE FINEST HOURS,” based on a true story, Trapped in the shuddering, foundering ves-
amounts to half of a serviceable action tige of the tanker, the chief engineer, Ray
thriller about the U.S. Coast Guard’s leg- Sybert (good work by Casey Affleck), and
endary rescue of more than 30 seamen the terrified crew, or what’s left of it, have
STORM
from half of a ship—the stern section of no radio contact with shore because they
the SS Pendleton, an oil tanker that split in have no radio. (It’s striking to note, from
two off Cape Cod in the winter of 1952. our higher-tech vantage point, the primi-
The action sequences—inside the shattered tive nature of mid-20th century communi-
vessel and aboard a motorized Coast Guard cation equipment: a balky radar at the
lifeboat during an epic storm—impressively Coast Guard station at Chatham, Mass., and
portray the power of the sea and the peril nothing by way of technology but a com-
of the rescue effort, which verges on a sui- pass and a searchlight aboard Bernie’s
cide mission. But the drama is almost still- Gillespie, is best known for the distinctive inexpressive in the face of hurricane-force wooden lifeboat, which is startlingly, in-
born, thanks to a slow, deadly dull roman- humanity of “Lars and the Real Girl,” and winds, and gimlet-eyed but inexpressive in deed poignantly, small and fragile.) And the
tic preface, and it’s subverted by incessant Chris Pine, who plays Bernie Webber, the the face of mountainous waves. seldom-sung heroism of the Coast Guard
switching between spectacular struggles on captain of the rescue boat, usually invests The cast includes Ben Foster, Eric Bana gets the pictorial evocation it deserves
the Atlantic and generic anxieties on shore. his roles with easy charm. But Mr. Gillespie (weirdly wooden as Warrant Officer Daniel when the rescue boat, crossing the Chat-
“Generic” describes much of the movie, had the benefit of Nancy Oliver’s heartfelt Cluff, the man who sends Bernie and his ham bar on the way to the open sea, braves
starting with the title, which was also the screenplay when he directed “Lars.” Neither crew out to sea), and Holliday Grainger as walls and curls of water that may have
title of the book, by Casey Sherman and Mi- he nor Mr. Pine can do much with this Miriam, the bright-faced young love of Ber- been generated digitally, but are awesome
chael J. Tougias, that was adapted for the script, which is economical, if you’re in- nie’s life. When he and she first meet in that all the same.
screen by Scott Silver, Paul Tamasy and Eric clined to be charitable, and, if you’re not, so pokey preface, it’s like a scene out of
Johnson. That’s a surprise, as well as a dis- impoverished that it keeps Bernie tediously “Marty” gone wrong; we’re supposed to see Email Joe at joe.morgenstern@wsj.com and
appointment, because the director, Craig humble at the outset, then tight-jawed but both of them as touchingly awkward, but follow him on Twitter: @JoeMorgenstern.
‘In the Shadow of Women’

If you didn’t know that “In the
Shadow of Women” had been made by
‘Kung Fu Panda 3’
distinguished veterans of French-lan- Stanislas The panda-potential movement Yuh Nelson and Alessandro Carloni
guage cinema—starting with the direc- Merhar and proceeds apace in “Kung Fu Panda directed from a script by Jonathan
tor, Philippe Garrel—you might mistake Clotilde 3.” This time Po (Jack Black), the Aibel and Glenn Berger.)
it for a debut feature by gifted neo- Courau borderline-obese panda turned The plot thickens, lumpily, when
phytes who were eager to emulate the dragon warrior, must become his someone else shows up after a
glory days of the New Wave, but over- best self in order to save the world long absence—a panda named Li
eager to explain what their characters from a villain named Kai, who has (Bryan Cranston) who claims to be
are thinking and feeling with the sort appeared from the spirit world after Po’s long-lost biological father. Is
of voice-over observations used most an absence of 500 years, and is he? Isn’t he? The two resemble one
memorably by François Truffaut in voiced with basso profundity by J.K. another in borderline obesity, and
“Jules and Jim.” (The film was shot in Simmons. (Why, whether by pandas they celebrate their reunion—if
black-and-white, with formal elegance, or James Bond, must it always be that’s what it is—with joyous belly
by the Swiss cinematographer Renato the whole world that’s saved? bumps. No need to pursue that plot
Berta, and was written by, among oth- Wouldn’t it be enough to save a line here, except to say that it leads
ers, the unquenchable Jean-Claude Car- major region once in a while?) This Po to a panda village, and to the
rière.) It’s a strange piece of work, full latest iteration of the hugely suc- notion of recruiting villagers to
of paradox—sharply analytical about cessful franchise summons up serve in an army that will vanquish
the ways of love, yet sometimes plod- plenty of cuddlesomeness to carry Kai for sure. Since Po has acquired
ding to the point of self-parody; inten- the freight, but it’s burdened by a his own martial arts skills all too
tionally distanced, yet offputtingly so, succession of earnest life lessons recently, his approach to training
despite an exquisite performance by like the one dispensed to Po by his new troops not only echoes Shifu’s
one of the stars, Clotilde Courau. and of men in general who, the film theme—grows out of a conversation I mentor Shifu (Dustin Hoff- injunction but recalls Harold
Ms. Courau plays Manon, the loving contends, live in the shadow of strong had with Mr. Carrière many years ago, man), the local variant of Hill’s “Think Method” in “The
CLOCKWISE: DISNEY; DREAMWORKS ANIMATION; DISTRIB FILMS
and devoted wife of Pierre (Stanislas women while insisting on their exclu- one in which he quoted something he’d Yoda: “If you only do Music Man.” Your strength,
Merhar), a documentary filmmaker. sive right to stray. “He thought only been told about seeing and perceiving what you can do Po tells his trainees,
Manon, we are told by the off-screen men could be unfaithful,” the narrator by his friend Robert Doisneau, the then you’ll never “comes from being the
narrator (Louis Garrel, the director’s son) tells us. “He sensed it was a simplistic French photographer. ‘’When you’re be more than best you can be.”
has been living in her husband’s shadow, notion, or plain wrong, a typically male young you see only the details,” Dois- you are now.” In Hollywood’s
always pushing him into the spotlight. In notion, but he couldn’t stop it coming neau said. “When you grow up, you see (Jennifer franchise game,
fact, Pierre is nowhere near as smart as back. It became an obsession.” both the details and the whole. That’s sequels are sel-
Manon thinks he is; she’s the brains and Well, that’s refreshing, a film made the peak of everything, it’s what you’ve Li voiced dom the best
the heart of their relationship. Nor is he mainly by men that sings the praises of lived for. When you get old, you forget by Bryan they can be.
as smart, passionate or interesting as women. My only question is why the about the details and see only the Cranston This one isn’t,
Elisabeth (Lena Paugam), a mistress he filmmakers chose to deliver their mes- whole.’’ The people who made “In the but it’s pretty,
chooses just like that, for nothing but sage so prosaically—so diagnostically— Shadow of Women” aren’t too old to perfectly
physical pleasure. instead of trusting their audience to un- have forgotten the details, but they pleasant
The movie’s title is ironic, and the derstand the nuances of the drama. aren’t young either, and it’s the whole and good
irony is underscored by didactic voice- The only answer I can think of— spectacle of male hypocrisy that seems enough.
overs that take a dim view of Pierre, their desire to convey an overarching to have seized them.
t 323 SIXTH AVENUE AT SHOWTIMES, TICKETS

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In this gentle comedy directed by Craig Gil- with panache, élan and, as befits the first Jean-Claude Carrière and Philip Kaufman PROG. A PROG. B
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THE COENS
Continued from page D1 showed me some Donald O’Connor
Scarlett
Johansson
that emphasized a graphic look to movies they fell for,” he said. Al-
be shot from above. though O’Connor is famous for the
In a major number evoking the classic “Singin’ in the Rain,” the Co-
1949 musical “On the Town,” Mr. ens showed Mr. Gattelli a number
Tatum leads singing-dancing sailors called “Applied Mathematics” from
on their last night of leave in a bar. the obscure 1948 movie “Are You
But no one choreographs tap With It?” The scene became one in-
dances for movies today, except for spiration for the tap routine.
the rare Broadway Mr. Gattelli also
transplant. The Coens asked if the sailors’
brought in Christo- dive bar had a name.
pher Gattelli, the The Coens’ The Coens started
Tony-winning chore-
ographer of the Broad-
challenge: riffing on possibilities
until they came up
way musical “News- ‘Nobody with the absurd yet
UNIVERSAL PICTURES (3)

ies.” Together they plausible “The Swing-
made the dances work does that ing Dinghy.” Mr. Gat-
on camera for the rou-
tine called “No
anymore.’ telli said, “That was
my way into the num-
Dames,” which has an ber, that light touch,
increasingly comic and the wink of it all.”
sexual subtext that They wink at Mr. At top, from left, Joel and Ethan Coen and cast; top right, Channing Tatum on the front table.
would never have sur- Brolin’s character, too.
faced 60 years ago. He is named Eddie Mannix, who clerics to make sure the studio’s turn, revealed at the end. “Hail, did know that in the film there
Mr. Tatum is known as a dancer was a real-life MGM production ex- Bible spectacular is inoffensive. Caesar!” is Mr. Clooney’s fourth would be “this semi-idiotic—as
from movies like “Magic Mike,” but ecutive and fixer, known for his Ethan Coen describes that scene Coen brothers film (after “O George’s characters always are in
hadn’t sung before. Joel Coen said, thuggish way of making problems as, “A priest, a reverend and a Brother,” “Intolerable Cruelty” and our movies—gasbag.”
“We thought, that’s exactly how it disappear. “We took the rough idea rabbi walk into a conference “Burn After Reading”). As children, Joel Coen said, he
used to work. You wouldn’t neces- and made somebody completely dif- room,” where Mannix asks for ad- The Coens had told Mr. Cloo- and his brother “would watch these
sarily be a singer when you worked ferent out of it,” Joel Coen said. vice in pure Coens period dia- ney the premise, and for 15 years movies on television and go out and
in Hollywood in the ’50s.” Stars like “Our Eddie Mannix is pure as the logue: “Does the depiction of it was a glimmer in his eye. “He remake them on Super 8.” He
Fred Astaire were dancers who hap- driven snow in a certain way.” Christ Jesus cut the mustard?” kept announcing it to the press as laughed at the connection to “Hail,
pened to sing. A Catholic addicted to confes- Mr. Clooney’s character is less his next movie and we thought, Caesar!” “In a sense we’re still do-
Mr. Gattelli discovered the depth sion, the fictional Mannix pays off rooted in specifics, although there ‘We haven’t written it yet,’ ” ing the same damn thing we were
of the Coens’ research. “They cops and convenes a group of is a hint of Clark Gable in one plot Ethan Coen said. The brothers doing when we were little kids.”
‘PAX’: BY SARA PENNYPACKER, ILLUSTRATED BY JON KLASSEN
The Team
Behind a Fox
Named Pax
BY JENNIFER MALONEY
MILLIONS OF READERS know Sara Penny-

packer and Jon Klassen for their humor—she for
the fiasco-prone heroine of her Clementine series
and he for his deadpan picture books about ani-
CLOCKWISE: JON KLASSEN; AUTMN LE BRANNON; MELISSA LYTTLE FOR THE WALL STREET JOURNAL
mals who are up to no good.

Now they’ve collaborated on a darker, quieter
book about a boy trying to find his lost pet fox
in a landscape on the
brink of war.
“Pax” is a 276-page
novel told from two
perspectives, following
the separate journeys
of Peter and his fox,
Pax, in alternating
chapters. Sprinkled
through the book are
spare, evocative draw-
ings by Mr. Klassen,
who is best known for
the picture books “I
Want My Hat Back” and “This Is Not My Hat,”
which together have more than 1.5 million cop-
ies in print world-wide.
“Pax,” intended for ages 9 to 14, is due out
Feb. 2 from Balzer + Bray, an imprint of Harper-
Collins, which, like The Wall Street Journal, is
owned by News Corp.
The book, which sold for six figures in a five-
bidder auction, is an example of the heated bid-
ding wars now taking place in the flourishing sub- It took several years before she figured out
genre of illustrated middle-grade novels, which how to tell the story—through the eyes of an ani- THEY COME IN
generally are aimed at readers 8 to 12. Increas- mal, and the bond between an animal and a child: PEACE In ‘Pax,’
ingly, publishers are pairing middle-grade novelists “They have this radical empathy that sees no Sara Pennypacker
with big-name illustrators from the children’s book boundaries.” She considered other species for the writes about a
world. Another example, coming next October role, including a dog and a ferret, before settling child in wartime;
from Macmillan, is Kate Beasley’s “Gertie’s Leap on a fox. Jon Klassen’s
to Greatness,” which will feature illustrations by Mr. Klassen, 34 years old, worked in animation, illustrations
graphic novelist Jillian Tamaki. contributing to films such as “Kung Fu Panda 2” include the cover
Middle-grade novels may not have the huge and “Coraline” before becoming a children’s book image. Above, a
initial sales of a buzzy young-adult title, but illustrator and author. His cover for “Pax,” drawn farm where Peter
when they succeed they can sell for decades, in colored pencil, shows the fox from behind, look- stops on his
said Donna Bray, Ms. Pennypacker’s editor at ing out over rolling hills. journey.
Balzer + Bray. “It is sort of a love story,” Mr. Klassen said.
Ms. Pennypacker, 64 years old, is a veteran “He’s so focused on the goal [of finding Peter] that
children’s book author: Her Clementine series has he won’t even look at you. And he’s incomplete.”
sold more than 1.5 million copies. The idea for He tried not to anthropomorphize the animals.
“Pax” (peace in Latin) came to her more than a No emotions can be read on their faces. READ ALONG
decade ago. Moved by news reports of children
orphaned, injured and displaced by wars around
“How do you draw a sad fox?” he said.
“That’s the heartbreaking thing about animals. WSJ
.COM
Listen to the author
read from the book at
the world, she wanted to tell a story that ex- You can’t tell them anything and they can’t tell
plored the costs of war—particularly to children. you anything.” wsj.com/life
THE WALL STREET JOURNAL. Friday, January 29, 2016 | D5
A Widespread Chill in Art Sales tions, said in its “Global Art

BY KELLY CROW
Market Review & Outlook
2016” report that it expects
The art market appears the houses to have “less ap-
to be entering its cooling- petite for this type of risk in
off period. For the past six the coming year,” a move
years, an influx of newly that could discourage skit-
wealthy collectors—particu- tish sellers from putting tro-
larly from China—has phies up for sale. Sotheby’s
pushed up prices for every- said it has extended guaran-
thing from Ming vases to tees to $92 million worth of
Claude Monet, but now art so far this year—includ-
there are signs that the bid- ing four pieces for sale in
ding paddles could come London. The house is still
down hard. licking its wounds after los-
Falling oil prices, volatile ing $9 million on a $515 mil-
stock swings and China’s lion guarantee it gave the
deepening economic woes heirs of its former owner, A.
are all taking their toll on Alfred Taubman, last fall
the art market and spook- when a sale of Mr. Taub-
ing the world’s wealthy, man’s estate disappointed.
who are counted upon to Expect shoppers to play
splurge for masterpieces it safer as well this year by
and brand-new artworks. gravitating toward burgeon-
Christie’s sold $7.4 billion in ing art hot spots that ha-
art last year, a billion less ven’t seen huge price rises
than it sold a year earlier; yet—like Singapore, India,
rival Sotheby’s $6.7 billion Africa and Iran—as well as
in sales last year were flat the world’s 50 best-known
with totals the year before. artists like Picasso and Andy
Next Tuesday—as both Warhol, whose price levels
houses kick off a winter aren’t likely to plunge as far
round of impressionist, as untested newcomers.
modern and contemporary The auction houses are
art sales in London—collec- already bracing for retrench-
tors will find thinner auc- ment by filling London sales
tion catalogs and smaller with these household names:
estimates for art for the On Wednesday, Sotheby’s
first time in years. The pric- plans to sell a cheery, red
iest piece up for bid this Henri Matisse scene from
time around? A Pablo Pi- 1923, “The Piano Lesson,”
casso painting, “Head of a which has been in one Brit-
Woman,” that Sotheby’s expects to sell for Sotheby’s wants at least $17.6 million for Henri Matisse’s 1923 ‘The Ms. Gyorgy said ish collection for 89 years. It’s expected to
at least $23.4 million. Not all Picassos are Piano Lesson,’ above. Christie’s will ask at least $14.2 million for Peter collectors in China and sell for at least $17.6 million.
alike, but that estimate is only 13% of the Doig’s “The Architect’s Home in the Ravine,” below. elsewhere are also Christie’s sale of impressionist and mod-
value of a nearly $180 million Picasso, feeling a measure of ern art on Tuesday is anchored by Egon
“Women of Algiers (Version O),” that Chris- sticker shock at the es- Schiele’s “Self Portrait With Fingers
tie’s sold last May. calating prices being Spread,” a 1909 black-and-gold depiction of
“I’m 99% sure we’re in the mania phase of asked for blue-chip art, the Austrian painter that last sold at auc-
an art-market bubble right now,” said Roman a reaction that may tion nine years ago for $8.9 million. This
Kräussl, an economist and associate profes- help the market reach time, the house is asking at least $8.5 mil-
sor at the Luxembourg School of Finance. a natural price cap. lion for it.
Earlier this month, Mr. Kräussl and two uni- “We’ve been hoping In contemporary art, Sotheby’s specialist
versity colleagues published a study in the for a slight correction Cheyenne Westphal said her strategy was to
Journal of Empirical Finance that analyzed to bring some sanity “focus on artists we know we sell well” like
FROM TOP: SOTHEBY’S; CHRISTIE’S IMAGES LTD.
more than a million auction records from the to this market,” she Gerhard Richter. Sotheby’s Feb. 10 sale also
past three decades. They determined that art said. “The way prices includes a burlap bag from Arte Povera art-
values can fluctuate dramatically like stocks, were climbing, the ist Alberto Burri. Stitched to a canvas and
and they wanted to see if they could detect whole thing was start- partially slathered in red paint, “Bag and
the next art-market slowdown. Their conclu- ing to feel artificial.” Red” is estimated to sell for at least $13.6
sion: It’s already happening, particularly for In art-world par- million.
the categories of contemporary and Ameri- lance, artificial means Edmond Francey, head of Christie’s con-
can art where speculation and price spikes choreographed, a de- temporary sale on Feb. 11, said the event is
have catapulted art values faster than other scription often hurled anchored by works of U.K. artists who still
collecting categories. at auctions that feature enjoy hometown hero status among Lon-
Mr. Kräussl said his research suggests a artworks that are al- don’s collectors. These artists include Peter
market correction could eventually ripple to ready essentially pre- Doig, Francis Bacon, Lucian Freud and David
other collecting areas but will likely stop sold. Last year, auction Hockney. Mr. Doig’s “The Architect’s Home
short of an art-world market crash. He said mestic product and exports grew at 3.5% houses tripped over themselves to offer fi- in the Ravine” is coming back to auction for
the wealthy still need places to store their and 8.1% a year, respectively. nancial sweeteners to sellers. These agree- the third time in a decade: The 1991 paint-
cash—and art remains a prestigious outlet. The game-changer for the art market: ments guaranteed the sellers’ offerings would ing sold for $3.6 million in 2007 and for
A Citi Private Bank report published two Maturing Chinese collectors are still buying sell to prearranged, third-party investors, if $11.9 million three years ago. This time, the
months ago said the global art market has art, but their shopping sprees are now no one else competed during the sales them- seller is asking at least $14.2 million, but
grown at an average annual rate of 13% “more selective and savvy,” said Suzanne selves. This guarantee race peaked when there’s little suspense because the house has
since 2000, based on auction turnover, but Gyorgy, head of Citi Private Bank Art Advi- Christie’s extended guarantees to half its of- helped the seller secure a third-party guar-
its research suggests the art market is set- sory and Finance, who contributed to the re- ferings during its major spring sales, but the antor, or a promised bidder.
tling into a 9% annual growth rate—not bad, port. (Sotheby’s sales in Beijing last year fell practice now appears to be tapering off. “Sometimes you need to reassure a mar-
given that over the same period global do- 69% from the year before.) ArtTactic, a London firm that tracks auc- ket,” said Mr. Francey.
CLOCKWISE FROM LEFT: EVERETT COLLECTION; ESTATE OF MARIO PUZO/RR AUCTION; STEVE SCHAPIRO/CORBIS
ON THE BLOCK: THE ‘GODFATHER’ ARCHIVE
Puzo’s Family
Seeks Offer They
Can’t Refuse
tory and a defining role for Mr.
BY JENNIFER MALONEY
Brando.
“It’s not often that you
IN MARCH 1970, a year after his novel get somebody’s entire ar-
“The Godfather” was published, Mario chive,” said Robert Living-
Puzo wrote to Marlon Brando with ston, executive vice presi-
some disappointing news. It looked as if dent of RR Auction, which
Paramount Pictures wasn’t interested in will hold the evening sale at
the author’s casting suggestion. its gallery in Boston’s North
“They are very cool, seem to have End. “These things usually end up
other ideas,” Mr. Puzo wrote. “So unin institutions.” Mario Puzo’s
less you have read the book and want The collection is being sold by the making of “The manuscripts;
to use your muscle I guess thats it. Puzo family. Anthony Puzo, the writer’s Godfather Part III.” inset, Marlon
[sic] I’m sorry I wasted your time. I still 68-year-old son, said Thursday that the Highlights include: Brando as Don
think it was a good idea. And thanks archive took up a lot of room and the a 744-page draft of Corleone; the
for taking the trouble to call and talk family’s younger generation wasn’t as the novel, originally ti- author, far left,
to me.” connected to “The Godfather.” tled “Mafia;” six large with Francis Ford
That letter is among a trove of doc- The archive fills 45 bankers boxes, storyboards on which Coppola on the set
uments from the author’s archive to be including three boxes of documents re- the author outlined the in 1974.
auctioned Feb. 18. With an estimated lated to the “Godfather” novel and the novel in red and black
value of at least $400,000, the collec- first two “Godfather” movies. Another marker; the 1965 Olympia
tion chronicles Mr. Puzo’s five-decade three boxes hold records from the typewriter on which Mr. Puzo is be- they debated some of the film’s fa- him an advance of $5,000. A couple of
career, from his first lieved to have written mous lines. In the movie, when dead years later, still desperate for money,
novel, “The Dark the book; and the au- fish are delivered in Luca Brasi’s bullet- he sold the film rights to Paramount
Arena,” published in thor’s copy of Francis proof vest, Clemenza says, “That’s a Si- for a $12,500 option payment, with
1955, to his final work, Ford Coppola’s “Godfa- cilian message. It means Luca Brasi more to come if the film was made.
“Omerta,” published ther bible,” a binder sleeps with the fishes.” In a draft of At night and on weekends, he
posthumously in 2000. filled with notes that the screenplay in the archive, the au- worked on the novel in a tiny office in
The most remark- the director used dur- thor wrote by hand a slightly less the basement of his home in New
able part of the collec- ing shooting. evocative line: “Luca is with the fishes.” York’s Long Island suburbs. On the
tion illuminates the The collection also He then suggested that the camera cut walls, he hung diagrams outlining New
“Godfather” years: includes the corre- to Luca Brasi at the bottom of the York’s five organized-crime families. In
thousands of pages of spondence between ocean. a small refrigerator, he kept his favorite
manuscripts, outlines, Mr. Puzo (in New Mr. Puzo began writing “The Godfa- snacks: pepperoni, sausages and moz-
screenplay drafts and York) and Mr. Coppola ther” in 1965. A gambler and an extrav- zarella. The author’s five children and
correspondence that (in California), as they agant spender, he had fallen deep into their friends often played in the base-
shed light on the mak- co-wrote the first debt, having far outspent his modest ment. “He would always yell at us to
ing of one of the most “Godfather” screen- income as a freelance magazine writer keep quiet because he was writing a
beloved books and play. In hand-notated and novelist. With a 10-page outline, he best-seller,” Anthony Puzo said. “We
films in American his- drafts and memos, convinced G.P. Putnam’s Sons to give didn’t realize.”
A Powerful Message—and a Hit

BY MARC MYERS
BORN IN THE BLACK CHURCH, gospel took a

secular turn in 1971 when the Staple Singers
recorded “Respect Yourself.” Written by
Mack Rice and Luther Ingram, the message
song with a soul-gospel feel encouraged
self-empowerment and dignity, and soon be-
came a civil-rights an-
them.
After the song’s re-
lease in September
1971, “Respect Your-
self” reached No. 12
on Billboard’s pop
chart and No. 2 on its
soul chart in Decem-
ber. The single was in-
ANATOMY ducted into the
OF A SONG Grammy Hall of Fame
in 2002.
RESPECT Mavis Staples’s
new album, “Livin’ on
YOURSELF a High Note” (Anti),
will be released Feb.
19 and “Mavis!,” a
documentary, will air on HBO on Feb. 29.
Recently, Ms. Staples, 76, and producer Al
Bell, 75, recalled the song’s evolution. Edited
from interviews:
Al Bell: One afternoon in early 1971, Mack

Rice came by my office. I was co-owner and
executive vice president of Stax Records in
Memphis then, and creative people like
Mack always had easy access to me. He was
one of our top house songwriters.
Mack said, “Doc, I have a song I think
will work on the Staple Singers.” He sat
down with that guitar of his with
three strings and began sing- Mavis Staples, on stage in Switzerland in 2014, above, and with the Staple Singers,
ing and playing a song he below, around 1970, worked on the song with Stax executive Al Bell, seen in 1968.
had written called “Re-
spect Yourself.” body that you run in to / This was perfect, since I wanted to create a
When he finished, How in the world do you folk sound for the Staples, to inch them out
I was knocked out think anybody’s s’posed to of gospel but not compromise their integrity
and asked what in- respect you.” as gospel performers.
spired him. Mack Then Mack ad-libbed Soon after we spoke, Marvell and I flew
said he was talking between the verses half- down. As soon as I met Barry Beckett
FROM TOP: VALENTIN FLAURAUD/EPA; MICHAEL OCHS ARCHIVE/GETTY IMAGES (2)

with songwriter Lu- way through (Ms. Staples (keyboards), Roger Hawkins (drums),
ther Ingram about all illustrates:) “Deep, dee- Jimmy Johnson (guitar) and David Hood
the things going on diddy, dee, dee/ deep, dee- (bass), I felt there was something special
with our people. At one diddy, dee, dee.” Pops cut in their spirit and in that room. After we
point, Luther said, him off. “Wait a minute, Mack. talked, I set up a recording date. My goal
“Black folks need to learn That’s not us. We’re church peo- was to have the guys record the song’s
to respect themselves.” ple.” Mack said, “Pops, you got to rhythm track and have Mavis and the Sta-
Mack said he loved that phrase do that part, man. You’ll get all the kids ples there to give the guys their feel on
and had used it to write the words and mu- singing it.” [My sisters] Yvonne, Cleo and I the song.
sic, giving Luther co-credit for the inspira- liked it. It was fun and made us feel joyful.
tion. I told Mack to go put a demo tape on Ms. Staples: When we all went down there,
his song. Mr. Bell: I set up a recording session—but Al told Barry, Roger, Little David and Jimmy
not in Memphis. The house musicians at what we wanted. Those guys were so good
Mavis Staples: We were in a studio at Stax Stax were tremendous, but I needed to feel and flexible, and the sound of the room just
singing when Mack Rice came in. He lis- free to talk to musicians about what I was hugged the notes. The electric piano intro
tened to us and when we finished, he said to feeling in nonmusical terms. This was my was Barry’s idea. Beautiful, isn’t it? These
my father, “Pops, I got this song for you— insecurity, but it was what it was. guys would come up with lines and hooks
it’s called ‘Respect Yourself.’ ” Pops liked Around this time, Marvell Thomas, a Stax you wouldn’t believe. Barry was the ar-
the title and its positive message. He said, keyboardist and son of recording artist Ru- ranger and gave each of them a page of mu-
“Let’s hear it Mack.” fus Thomas, told me about these four young sic. They all knew what to do.
When Mack gave you a song, he didn’t white musicians at Muscle Shoals Sound As great as those musicians were, I
just sing it for you. He sang all the parts— Studio in Alabama who were sharp. wanted to sing right in front of each one of
the bass, horns and everything he had in These musicians were known as the them, to get them into my space and make things for color. Terry played that rock-
mind. You couldn’t help but listen. (Ms. Sta- Swampers and could play rock, country, them familiar with my flavor. I also needed sounding electric guitar on the last verse. I
ples sings softly:) “If you disrespect any- R&B, soul—all of that, with enormous feel. to feel what they were doing and incorpo- also wanted a sound in there that kids
rate that into my vocal. I like moving could relate to, like what they heard on car-
around when developing a vocal approach. toons. So Terry added a moog synthesizer
I need to feel the vibe physically, not just in on the bridge, starting at around 1:10. We
my head. put in some horns, too, for texture. The as-
cending and descending lines that the Sta-
Mr. Bell: As soon as the guys heard Mavis ples chant—“Dah dah dah, dah-dah / dee,
sing a line from the song, you didn’t think dee, dee, dee”—that was the horn line
about Mack Rice’s demo any more. A few Mack had improvised while singing on his
weeks later, the Staples came to John Fry’s original demo.
Ardent Studio in Memphis, where I always
recorded with engineer Terry Manning. Ma- Ms. Staples: After the song became a big hit,
vis went into the isolation booth with Pops, Al asked us to appear at Wattstax, a large
Yvonne and Cleotha and recorded their mas- outdoor concert he was producing in August
ter vocal while listening to the Muscle 1972 at the Los Angeles Memorial Coliseum.
Shoals rhythm track on their headphones. We went on around 3:30 p.m. and sang five
songs, but “Respect Yourself” was the high
Ms. Staples: My ad-libs during the song were point. When we started, you didn’t hear a
inspired by the music. It’s the gospel in me. peep. You could see people were listening
I can’t leave space alone. Toward the end of and thinking.
a song, I had to put some fuel in it, to keep
it going. That’s the seasoning. I never Mr. Bell: When I played Mack Rice the fin-
stopped a song where it was supposed to ished single, he looked at me and shook his
end. Pops liked that I did that. He’d say, “Go head, saying, “Man, you destroyed my
ahead, Mavis, take it,” and I’d go crazy. song.” Several months later, when the song
was a huge hit, Mack stuck his head in my
Mr. Bell: After the master vocal track was office and said, “Doc, I just dropped by to
recorded, Terry and I added a few more really thank you for destroying my song.”
ROASTING CHESTNUTS The album includes suites from “Psy- and singer Petra Haden—performed a Bill Frisell, seen in
cho” and “Once Upon a Time in the movie-music repertoire. The band re- Portland, Ore., late
A Jazz West,” as well as songs that became

pop hits, like “Moon River” (sung by
united for the recording and on Feb. 13
will start a multicity tour that includes
last year at work
on his new album.
Master at
Audrey Hepburn in “Breakfast at Tif- a week-long run at New York’s Village
fany’s”) and “The Shadow of Your Vanguard.
Smile” (the love theme from the less- Mr. Frisell said he has long admired
The Movies memorable “The Sandpiper’”).
“There’s a bit of autobiographical
composers such as David Raksin, who
composed scores for more than 100
stuff going on here,” said films, such as “Laura.” Mr.
Mr. Frisell, whose dozens Raksin’s theme for “The
BY STEVE DOLLAR
of albums blend jazz, folk Bad and the Beautiful”
and rock. He grew up has become a jazz stan-
MOVIE SONGS are the ultimate ear amid the television shows dard. “That’s the one I
worms. Who hasn’t whistled the and matinee idols of the probably obsessed over
theme from “The Good, the Bad and ’50s and ’60s. the most,” Mr. Frisell said.
the Ugly” or crooned a Disney lullaby? “I remember when I “I heard that melody a lot
Bill Frisell can’t resist, either. The first got my driver’s li- and it would always stick
64-year-old guitarist’s latest album is cense and the very, very in my head for years and
devoted to composers famous for their rare occasion that I had a years.”
work for the silver screen, including date with a girl and I got to drive my The guitarist said he was most
Ennio Morricone, Bernard Herrmann, parents’ car to downtown Denver to go compelled by the unsung musicians
Henry Mancini and Elmer Bernstein. see a James Bond movie,” he said. who played the original scores. “These
Mr. Frisell and his quintet revisit vin- “That’s resonating with the music. It guys are reading this stuff down for
tage orchestrations on the album, gives you a lot more to hold on to than the first or second time,” Mr. Frisell
“When You Wish Upon a Star” (OKeh just the notes.” said, imagining their workaday ap-
MONICA FRISELL
Records), to be released Jan. 29. The album expands on concerts last proach to making cultural touchstones.
“The music I chose for this is so year where Mr. Frisell and his collabora- “It’s ‘OK, we’ve got an hour. Bam, bam,
much a part of the fabric of what my tors—violist Eyvind Kang, drummer bam, bam!’ We hear that, and it be-
musical imagination is,” Mr. Frisell said. Rudy Royston, bassist Thomas Morgan comes this monolithic thing.”
THE WALL STREET JOURNAL. Friday, January 29, 2016 | D7

way, O’Neill makes us aware of the thwarted
David Breitbarth longing for a larger life that has scarred his
and Douglas soul: “You can see life in Waterbury, all
Jones right—that is, if you’re looking for life in
Waterbury!”
Why isn’t so lovely a play as “Ah, Wilder-
ness!” produced more often? Because it calls
for four sets and a cast of 15, which puts it
out of reach of most American theaters. For-
tunately, Asolo Rep, which is both a profes-
sional theater company and a drama school,
is in a position to revive large-cast plays
with elaborate scenic requirements, and it
does so consistently and effectively, casting
them with a mixture of veteran regional
stage actors and promising students. Mr.
Jones, for example, stole the show as the
racist juror in Asolo’s 2011 production of
“Twelve Angry Men,” and he’s no less im-
pressive this time around, gracefully convey-
ing the melancholy beneath Sid’s geniality.
Likewise Ms. Roeder, who was Dolly Levi in
the company’s marvelous 2015 revival of
Wilder’s “The Matchmaker” and who is infi-
nitely touching as Lily, the lonely spinster. As
for Mr. Breitbarth, he’s the best Nat I’ve
seen, the kind of father you’ll wish you’d had
if you didn’t, and Mr. Hamey, if perhaps the
least little bit too wide-eyed, is pleasingly
reminiscent of such golden-age Hollywood
male ingénues as Tom Drake and John Payne.
Greg Leaming, the director, obtained per-
mission from O’Neill’s estate to trim 40
minutes from the script of “Ah, Wilderness!”
It now runs for two hours with one inter-
mission. The play doesn’t need to be short-
Eugene O’Neill’s Sunny Side

ened—its expansiveness is part of its period
charm—but it’s true that O’Neill was long-
GARY W. SWEETMAN
winded, and modern audiences will be

grateful for the discreet cuts that Mr. Leam-
ing has so skillfully made. His staging avoids
the isn’t-everybody-adorable exaggeration
that is death to such shows, and I especially
liked the subtlety with which he brings out
REVIEW 1906. O’Neill wasn’t joking when he de-
scribed “Ah, Wilderness!” as “not in the sa-
arch (David Breitbarth) and his idealistic
son (Tom Hamey). But Nat Miller, the father,
the Victorian priggishness of the female
characters.
TERRY TEACHOUT tiric vein.” On the contrary, it’s as sunny as is not a tyrannical stage actor but an even- Steven C. Kemp’s set design rates special
the day that it describes. But bright sun- tempered, worldly wise newspaper editor praise. The play is performed in front of a
shine casts dark shadows, and part of what who isn’t as provincial as he looks, while pointillistic, richly textured abstract back-
Ah, Wilderness! makes “Ah, Wilderness!” so excellent is that young Richard is destined for a life as con- drop that I suspect is meant to make us
Asolo Repertory Theatre, Mertz Theatre, it doesn’t ignore the complexities of life. So ventional as his father’s. All he needs to think of Connecticut granite. Skeletal set
5555 N. Tamiami Trail, Sarasota, Fla. it’s good news that Sarasota’s Asolo Reper- steer clear of the looming slough of adoles- pieces show us where we are, with realistic
($24 and up, depending on availability), tory Theatre is presenting a revival of “Ah, cent despond is some gentle parental guid- furniture defining the time and place more
941-351-8000/800-361-8388, closes Wilderness!” that is finely acted, intelli- ance—and he gets it, this being a comedy, precisely—a nice blend of naturalism and
April 10 gently staged and outstandingly well de- though not without a leavening touch of poetry. The incidental music consists of
signed—in short, everything I’ve come to farce along the way. gather-round-the-piano old-time ballads
expect from Asolo Rep. Yet “Ah, Wilderness!” isn’t at all bland. that are sung by the members of the com-
Sarasota, Fla. O’Neill described “Ah, Wilderness!” as “a Like Thornton Wilder in “Our Town,” which pany in a homespun manner that is bless-
It’s one of the American theater’s su- sort of wishing out loud. That’s the way I followed it to Broadway five years later, edly devoid of slickness.
preme ironies that Eugene O’Neill, the grim- would have liked my childhood to have O’Neill takes care to remind us that life in
mest of our great playwrights, somehow been.” Another way to understand it is as a Waterbury can also be full of frustration. Mr. Teachout is the Journal’s drama critic.
managed to write a play as hopeful as “Ah, near-exact inversion of “Long Day’s Journey Take Sid (Douglas Jones), Nat’s bright but “Satchmo at the Waldorf,” his first play, is
Wilderness!” First performed in 1933, it is Into Night,” his autobiographical tragedy ineffectual brother-in-law, whose chronic al- currently running at Chicago’s Court
his only comedy, a sweet but not sugary about an Irish-American family on the brink coholism has kept Lily (Peggy Roeder) from Theatre and San Francisco’s American
coming-of-age tale that unfolds in Water- of devastation. Like “Long Day’s Journey,” marrying him. Sid is charming, but he’s also Conservatory Theater. Write to him at
bury, a small Connecticut town, on July 4, “Ah, Wilderness” features a magnetic patri- pitiful, and though the Millers love him any- tteachout@wsj.com.
Dissonance at
Bernie’s
REVIEW
JOHN ANDERSON
Madoff
Wednesday and Thursday, Feb. 3 and 4, 8 p.m. ABC
“You know how Madoff does of Mr. Madoff—given just a touch

it?” bellows the exasperated fi- of ghoulishness by Mr. Dreyfuss—
nancial investigator Harry Marko- it provides solidly sordid enter-
polos (Frank Whaley). “He tainment. But it also elevates its
doesn’t!” subject into an object of sympa-
You can see it coming. It’s still thy. One is compelled, by Mr.
pretty funny. And if this moment Dreyfuss’s charisma and the ever-
in ABC’s two-part “Madoff” gives empathetic direction of Raymond
some satisfaction to the real-life De Felitta (“City Island,” “Rob the
Mr. Markopolos—who was blowing Mob”), to root for “Bernie” as he
the whistle on Bernard Madoff a struggles to keep his family and
decade before the con man’s 2008 the Securities and Exchange Com- Richard Dreyfuss and
arrest—that’s great. It’s probably mission in the dark, all the while Tom Lipinski
similar to the satisfaction Mr. Ma- perpetrating a scheme that ruined
doff will feel, if his 150-year prison thousands of lives. If there were
sentence includes TV privileges. something called “Cognitive Dis- same thing: How did he sleep? ter Madoff, played by a fine Peter was simply not part of Mr. Mad-
“Madoff” stars Richard Drey- sonance Theater,” this could be its How do you perpetrate a decades- Scolari)? How do you make $50 off’s DNA. It’s only when the SEC
fuss as Mr. Madoff, a terrific gala presentation. long Ponzi scheme that betrays billion disappear and have a mo- is just about to discover that his
Blythe Danner as his wife, Ruth, The dramatic rather than moral charities, unions, synagogues, chil- ment’s respite from the fear that story doesn’t hold water that Ber-
and is an audacious undertaking flaw in “Madoff” is this: Anyone dren, friends and family members you’ll be found out, prosecuted, nie starts to sweat. It’s not a con-
with a flaw in its DNA. In at- who has contemplated its subject (“Madoff” presumes the family ruined and reviled? According to vincingly moist moment, psycho-
tempting to crawl inside the head for a moment wants to know the knew nothing, save for brother Pe- the script by Ben Robbins, dread logically or dramatically.
Murder of a President Candice Millard, this “American Ex- Mike Nichols: American Masters
Tuesday, 9 p.m., PBS. perience” presentation features Ms. Friday at 9 p.m., PBS.
Millard and other historians weigh-
The slow-motion assassination ing in on Garfield, mostly with un- Queuing up this Elaine May-directed provisation
of James Garfield in 1881 was initi- abashed admiration. The re-enact- tribute, I was sure I knew what was anyone
ated by two bullets and abetted by ments are first-rate, and feature the coming: Clips of the comedy team ever saw”
Willard Bliss, the backward-looking wonderful Shuler Hensley as Gar- Nichols and May, a survey of the late at the Ac-
doctor who didn’t believe in the field and Will Janowitz as Guiteau. director’s early Broadway successes tors Studio;
germs and infection that would kill One does wish there weren’t quite (“Barefoot in the Park,” “The Odd Cou- directing Neil
his patient 21/2 months later. As an so large a gap between Garfield’s ple”), a segue into Hollywood (“Who’s Simon’s early
exercise in incompetence and ca- election to Congress in 1862 and the Afraid of Virginia Woolf?” and “The plays; marching in Selma (a recollection
reerism, the entire episode qualifies Republican convention of 1880—the Graduate”). An array of eminent talking on that brings on tears); directing
as tragedy. It’s also the thing that unmentioned details as to why in- heads. Testimonials. Bouquets. Instead, Meryl Streep in “Angels in America”
distinguishes our 20th president in cumbent Rutherford B. Hayes the first shot is of Adolf Hitler. (more tears); and obliquely explaining
the minds of most Americans. wasn’t running are not irrelevant to Departing from the expected has al- his philosophy of theater, comedy and
ways been Ms. May’s M.O. and Mr. life. And at no time is it anything but
CLOCKWISE: ABC; EVERETT COLLECTION; NATIONAL ARCHIVES/PBS
And this should not be, argues Garfield’s story, though they might
“Murder of a President,” which gen- have tarnished the glittering portrait Nichols’s as well, and this premiere— utterly fascinating television.
erates considerable suspense out of “Murder of a President” is painting marking the 30th anniversary of “Mike Nichols” is built around an in-
its 134-year-old crime, while making James Garfield or, at least, complicated it beyond “American Masters”—is true to their terview conducted in 2007 by producer
a persuasive case for Garfield as an the program’s two-hour length. ethos. It begins with Mr. Nichols’s Hit- Julian Schlossberg, simply “for poster-
extraordinary, charismatic, fiercely “raw edge” of poverty, yet became a col- But what many viewers will find ler anecdote: His earliest memory, at ity,” according to PBS. (Mr. Nichols died
intelligent man who might have lege professor, Civil War general, ardent remarkable in “Murder of a Presi- age 7, is of having to wait for a Hitler in 2014.) The show does include much
been one of our greatest presidents abolitionist, social reformer, ally of Lincoln dent” is the epic national grief that broadcast to conclude before he and of the usual docu-bio hardware, includ-
if not for the mad act of “disap- and advocate for the rights and advance- erupted at Garfield’s passing. His his German-Jewish family could board ing exultant interviews with folks
pointed job seeker” (as he’s long ment of ex-slaves. He was a fierce oppo- funeral was larger than Lincoln’s; his their boat to America. named Spielberg, Streep, Balaban, Hoff-
been described) and paranoid nent of the machine politics practiced by body traveled over train tracks But the program then stays with man and Kushner, plus outtakes from
schizophrenic (as the program pre- New York’s Roscoe Conkling, whose strewn with flowers. Largely rele- him for what, in TV documentary Mr. Nichols’s films, plus an outpouring
sumes) Charles Guiteau. crony Chester A. Arthur would figure so gated to obscurity now, Garfield terms, is an extraordinary amount of of respect and devotion. But the heart
Garfield personified the perhaps prominently in the Garfield story. was not just heroic but beloved. time, as he talks about meeting Susan of the piece is Mr. Nichols himself, who
quaint notion that anyone could be Narrated by Michael Murphy and What’s really remarkable is how Sontag at the University of Chicago; weaves an irresistible spell just by talk-
elected president. He grew up on the based on “Destiny of the Republic” by completely we’ve forgotten. seeing Marlon Brando in “A Streetcar ing—about his work, his colleagues and,
Named Desire”; doing “the worst im- best of all, himself.
D8 | Friday, January 29, 2016 * *** THE WALL STREET JOURNAL.
SPORTS
Tennis Players Get an Oxygen Fix
To aid recovery, tennis
pros in Melbourne rent
hyperbaric chambers
BY TOM PERROTTA
Melbourne, Australia
TOM PERROTTA FOR THE WALL STREET JOURNAL

AFTER HE WON a four-hour, 32-min-
ute match at the Australian Open on
Sunday, Novak Djokovic, the world’s
best tennis player, showered, spoke
to the media, and then hustled over
to a quiet late-night spot that’s pop-
ular among several players: A small
clinic two miles from the tourna-
ment that has four hyperbaric oxy-
gen pods for rent.
The machines look like deep-sea
diving submarines with glass win-
dows and hatches in the back. Inside, Left, Novak Djokovic uses hyperbaric oxygen therapy to help with recovery.
players slip on a plastic breathing Above, a pod at the HyperMED clinic in Melbourne, Australia.
mask attached to a long tube. Once
the hatch seals they’re off, compres- morning, whatever the requirements ery athlete has a growing list of inju-
sor and regulator whirring and pres- are,” he said. ries that may benefit,” he wrote in
sure building until they’re basically Top athletes around the world, an email.
40-feet under water and breathing including football, basketball and Hooper’s chiropractic license was
100% oxygen through the mask (out- soccer stars, use hyperbaric oxygen suspended for two years in 2013 after
side air contains just 21% oxygen). therapy. Djokovic said he only uses a dispute with a former cerebral palsy
Players have their own masks and hyperbaric pods in the U.S. and Aus- patient in part over the effectiveness
WILLIAM WEST/AGENCE FRANCE-PRESSE/GETTY IMAGES
tubes and don’t share them (that’s tralia, because access and regula- of treatment, though the Chiropractic
bad hygiene). They wear blue hospi- tions are challenging in Europe. He Board of Australia viewed Hooper’s
tal booties over their socks and must said there is still a stigma about oxy- “conduct as an error of judgment
leave behind their phones, watches gen therapy, that it gives athletes rather than a defect in character,” and
or anything with a battery that could who use it an unfair advantage. that he was a “true believer in the
spark a fire. Outside each pod’s front “It’s very sensitive, especially in treatment that was being given.” (He
window is a television equipped with the European part of the world,” he said he hasn't practiced as a chiro-
Netflix. American Bethanie Mattek- said. “I wish I can have this all over practor for 20 years and no longer
Sands binged on episodes of “Mak- the place, I wish.” has a need for the license.)
ing a Murderer” before leaving Mel- Mattek-Sands said she would be Hooper also was treating Aussie
bourne on Thursday after losing in thrilled if the sport’s major tourna- Rules football players in 2013 when
mixed doubles. Djokovic spent an ments provided pods on site. “It’s they separately came under investi-
hour in the pod after his five-setter just kind of the new wave for the fu- gation for the possible use of banned
against Gilles Simon on Sunday, from ture,” she said. substances. A Court of Arbitration
around 10 p.m. to 11 p.m. He’ll use it Hyperbaric therapy doesn’t suit for Sport panel that imposed a two-
before matches too, as he did for an year, doubles star Mike Bryan be- Mattek-Sands said the benefits are everyone. Andy Murray has tried it year ban on 34 players earlier this
hour Tuesday afternoon before play- came a pod regular. His twin brother, subtle but valuable. “It’s not like you and decided it isn’t for him, accord- month made no mention of Hooper
ing Kei Nishikori later that evening. Bob, tried it too, though just once. walk out of there feeling like Super- ing to a representative. Some ques- in its findings and didn't assign him
Djokovic watched M. Night Shya- “It’s great,” Djokovic said. “It man or anything,” she said. “You tion its merits. A paper published any fault. Hooper says he tells all his
malan’s “The Last Airbender.” should get out there more, not just sleep pretty good that night, I’ll say last year in PeerJ, a peer-reviewed clients about his history. Justin
“I either like comedy or, some- for athletes.” that. You crash and you dream journal, found lower lung cancer in- Sands, the husband of Mattek-Sands,
body calls it science fiction,” he said. Mike Bryan said: “It just helps re- pretty heavy.” cidence among people living at high said Hooper has been open since
“I call it the world we still didn’t ex- covery. I felt a little better doing it.” The facility is run by Malcolm elevations, which suggests oxygen they first met.
plore.” Bryan also likes the VacuSport, a Hooper, a former chiropractor, who could be a driver of cancer. Kamen “He’s been nothing but an up-
The pods are located at Hyper- long tube with a skirt that seals a sat in Djokovic’s box in Rod Laver Simeonov, an MD-PhD trainee at the standing, good guy,” Sands said.
MED, a ground-floor clinic nestled player’s legs in a vacuum and flushes Arena Thursday evening as the University of Pennsylvania and co- Sands, who played college foot-
between a hair salon and a bakery lactic acid. There is also a cryother- world No. 1 beat Roger Federer and author of the paper, wrote via email, ball in the U.S., said he used hyper-
about a 10-minute drive from the apy chamber, which cools to minus earned a spot in Sunday’s Australian “Basically, it’s exposing yourself to baric therapy in his playing days. He
Open. A few hotels popular among 150 degrees Fahrenheit for a few Open final, the sixth of his career. risks with no logical reward.” says he’s surprised so few tennis
players are nearby. Djokovic, known minutes. HyperMED’s website has a Hooper’s clients include people with Hooper, who is an affiliate mem- players use it, given the grueling de-
as the most meticulous player on the picture of Milos Raonic, the Cana- cerebral palsy, traumatic brain inju- ber of the International Hyperbaric mands of the game. It might even be
tour, has used the pods here for sev- dian star, standing in its chamber. ries and disabilities, as well as other Medical Association, said he has useful, he said, for the tour’s travel-
eral years with the hope of aiding Oxygen sessions last anywhere athletes. During the Open, he opens seen gains in his patients, and that ing husbands and wives, though for
recovery and preventing injury. Mat- from an hour to two hours and cost his clinic day and night depending research suggests hyperbaric treat- other reasons. “It’s great for a hang-
tek-Sands started last year. This 150 Australian dollars (US$105). on players’ needs. “Two, three in the ment can help many ailments. “Ev- over,” he said.
Heard On The NBA’s Great Karl-Anthony

Towns—the rookie
Cat Mystery
known as ‘KAT’—
The Field recently posed
with a cat in a
video urging fans
that he actually enjoys the detective to vote him into
BY BEN COHEN
work. “It’s innately satisfying to find out the All-Star Game.
if someone has a cat,” he says. Alex—and,
Chicago it turns out, many others—also thinks it’s
AN OTHERWISE ORDINARY basketball hilarious that even physically freakish
fan named Alex recognized someone walk- mega-millionaires clean their cats’ litters.
ing into a recent Chicago Bulls game and “Having a cat means surrendering to the
thought: Wait, is that Dikembe Mutombo? whims of others,” said Alex, who owns
Then something else occurred to him. two shelter cats, B and Frankie, with the
“I thought about running after him bite marks to prove it. “They’re to be ex-
and asking about cats,” he said. “I’m really perienced—not owned.”
regretting that I didn’t.” There aren’t many NBA players with
Alex is a 34-year-old radio producer cats—Alex has 10 players on his current
who enjoys cooking, gardening and medi- list—which puts more pressure on his in-
tation. He’s also the anonymous owner of vestigations. He begins with basic Google
Run Around the World a website that, somehow, has become a searches for NBA players and possible
TONY DEJAK/ASSOCIATED PRESS; NBA CATWATCH (INSET)
cult hit in basketball circles. It’s called pets. Then he scrolls through every single
Nears the Finish Line NBA Catwatch. Instagram a player has ever shared. Then
On Thursday afternoon, runner Almost every night of the NBA sea- he looks through press clippings. And old
Becca Pizzi won a marathon in son, Alex sits down at his computer, interviews. And long-forgotten videos.
Dubai, her sixth race in as many flicks on a basketball game, pours a tall And foreign-language documentaries.
days. On Friday, the 35-year-old glass of ginger ale and gets to work. He He also goes straight to the source by
from Belmont, Mass., will seek to spends more than 10 hours each week asking NBA players on Twitter. This
become the first American woman trying to answer an week, when he was
to complete the World Marathon important question: researching the
Challenge: Seven marathons on Who are the NBA Oklahoma City
seven continents in seven days. players with cats? Thunder, Alex con-
The final 26.2-mile race is sched- The man behind tacted Russell West-
uled for Friday night in Sydney, NBA Catwatch is brook. “I’m sorry to
Australia. Pizzi is on track to win extremely serious ask you this ques-
the women’s division, but says she’s about his absurd tion but it’s my job,”
trying not to get ahead of herself. quest. Now, three he said. “Do you like
“I’m taking it one continent at a years after he began cats at all?” (A team had never heard of NBA Catwatch. one scene when a cat wandered into the
time. As [Patriots quarterback] Tom asking NBA players spokesman said nei- But this season’s litter of cat news has shot. It was on screen for a total of three
Brady says, ‘I didn’t come this far for their opinions on ther Westbrook nor Alex busy enough as it is. There was a seconds—which was plenty long enough.
to only come this far,’” she joked. cats, Alex’s website Kevin Durant own brouhaha when Brook Lopez and Robin Alex contacted anyone who might have
The multi-race event, now in its has thousands of cats.) Lopez revealed they don’t live together be- more information and was ready to send
second year, was limited to 15 par- Twitter followers Alex doesn’t ex- cause of the beef between their cats self-addressed stamped envelopes to ev-
ticipants. The 2016 field includes who alert him any- pect to hear back Poupin and Prince Edward Zephyr. Then ery employee in San Antonio’s front of-
runners from six countries, four time it appears possible that an athlete because he almost never does. More the Minnesota Timberwolves produced a fice. Instead he came up with a more
women and 11 men. Another Ameri- owns a feline. His site is so popular that players have responded to say they hate video this month in which Karl-Anthony sensible plan: He had a friend in the me-
can, 27-year-old U.S. Marine Daniel when Alex started selling $25 shirts with cats than they own cats. Towns—the rookie known as “KAT”—poses dia ask Parker about it. Alex had his an-
Cartica, is in the lead for the men. the NBA Catwatch logo—which is the But there are outliers. D-League player with a cat to get fans to vote him into the swer that day. The cat’s name was Cece.
The challenge kicked off this NBA logo with a cat instead of Jerry Russ Smith set up a special Instagram ac- All-Star Game. Alex found out the cat “Just by blunt force,” Alex said, “some-
past Saturday on Antarctica’s Union West—he had hundreds of buyers and count for his cat Mr. Quackers. Other pho- didn’t actually belong to Towns but the times I wear people down.”
Glacier. Runners were prepared for raised $3,500 that he donated to animal tos surface only after Alex asks. Last rookie did own a cat as a child. Alex is try- During a recent interview, Alex excused
frigid temperatures, but there were shelters. month, Memphis Grizzlies center Ryan Hol- ing to figure out the cat’s name. himself for a moment while he pulled out
still surprises, Pizzi said. “My iPod “This is the most successful thing I’ve lins said on Twitter that he had a cat It wouldn’t be the first case he his phone. Alex had tweeted several rela-
SIMON SIMARD FOR THE WALL STREET JOURNAL
froze—but then running on the gla- ever done,” said Alex, who declined to named Baby Jag, and Alex inquired about cracked. Alex was tipped off last summer tives of Oklahoma City forward Andre
cier, you could hear a pin drop.” give his last name and prefers the iden- photographs. Hollins sent a Baby Jag glam- about an obscure interview from 2006 Roberson earlier in the day, and Roberson’s
Marathon No. 2 was in Punta tity of NBA Catwatch. our shot. NBA Catwatch had an exclusive. that suggested San Antonio Spurs guard sister had written back to NBA Catwatch
Arenas, Chile. Marathons three, four NBA Catwatch is the inevitable union of Alex has cat-related suspicions about Tony Parker had cats. This was the NBA with news: Roberson is a dog person. Alex
and five were held in Miami, Madrid two Internet obsessions. There is no Ameri- some NBA players, but the biggest mys- Catwatch equivalent of Deep Throat in fidgeted in his seat with excitement.
and Marrakesh, Morocco. can sport more popular online than basket- tery in his world right now is a former the parking garage. “There are numerous “Sorry,” he said, “I just have to break
By week’s end, participants will ball, and there is no animal more viral than NBA coach. Jeff Van Gundy, the current documentaries about Tony Parker,” Alex this.”
have flown more than 25,000 air- the cat. A site with both was bound to be ESPN analyst, once said on television said, “so I spent a night watching double- He returned to his phone and, over
line miles and run 183 miles. The a perfect storm of Internet weirdness. that he named a cat Cheeks after ex- speed French-language documentaries on the next few minutes, carefully typed out
grueling schedule only allows about Alex says there are lots of reasons he NBA player Mo Cheeks, which piqued YouTube.” a tweet. “BREAKING: OKC Thunder guard
12 hours on each continent. researches the animal preferences of pro- Alex’s interest. Van Gundy confirmed this Then came his “aha” moment: Parker Andre Roberson doesn’t hate cats,” he
—Hilary Potkewitz fessional basketball players. The first is week that he still owns cats—and that he was shown walking around his home in wrote, “but probably wouldn’t own one.”
MANSION
Napa Valley estate ‘Coconut Grove was swallowed,

of Robin Williams
sells for $18.1 million willy-nilly, like a trout by a bass.’
M2 —Ralph Monroe on annexation by Miami
HOMES | MARKETS | PEOPLE | UPKEEP | VALUES | NEIGHBORHOODS | REDOS | SALES | FIXTURES | BROKERS
© 2016 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Friday, January 29, 2016 | M1
ALEXIA FODERE FOR THE WALL STREET JOURNAL

IN LIVING COLOR Sandy Dufay with dogs Chacha and Bentley at her 1928 waterfront villa, which is on the market for $3.795 million. Ms. Dufay, who is renovating a newer home a few blocks away, is
hoping the buyer will keep her home intact; many vintage homes on valuable waterfront lots are dwindling as developers tear them down to build larger spreads to maximize the return.
COCONUT GROVE GETS GLAM

The groovy Miami enclave is now commanding some of the highest prices in the city,
and billionaires have moved in. Will the village be able to hang onto its hippie roots?
cluding actor Christian Slater, megadeveloper company founder, is selling her 1928 waterfront
BY STEFANOS CHEN
Jorge Pérez, Miami Heat coach Erik Spoelstra villa for $3.795 million, as she’s conducting the
and health-care tycoon Mike Fernandez, accord- renovation of a newer home a few blocks away.
PEACOCKS AMBLE down the side streets. The ing to public records and real-estate agents. Listing agent Mercedes Hernandez with Ava-
vegetation has an overgrown, junglelike quality. Prices for some units in Park Grove’s under- tar Real Estate Services says homes on valuable
Hippies once camped out here in vacant lots and construction towers are expected to top $1,900 waterfront lots, like Ms. Dufay’s, are dwindling
public parks. And Coconut Grove—Miami’s groovy, a square foot—a city of Miami record. Coconut because developers are tearing them down to
Birkenstock-loving village—is now commanding Grove’s priciest home, a historic estate listed for build larger modern spreads that maximize their
some of the highest prices in the city, competing $47.5 million, is likely to be torn down as the return. Down the block, a home on a similar lot
with slicker neighbors like Miami Beach. value really lies in its 6.9 acres, agents say. was demolished to create a 9,800-square-foot
With tight inventory and a spate of ambitious It could be a challenge for the subtropical en- spec house listed for almost $8 million—more
condo projects, the Grove has attracted a num- clave, known for its wild flora, to keep its hippie than double the price of Ms. Dufay’s home.
ber of high profile residents in recent years, in- roots intact. Sandy Dufay, a retired health-care Please turn to page M12
VACATION-HOME DEALS FOR THE INTREPID INSIDE
There are bargains to be had on luxury houses in Thailand, Bali and Malaysia—but also some risks.
BY ANJIE ZHENG
HOUSE HUNTERS dreaming

of a villa on the white-sand
beaches of Thailand or Bali
can find significant bargains,
MARIO JUANITO REYNALDI FOR THE WALL STREET JOURNAL (3); KRISTA KELTANEN FOR THE WALL STREET JOURNAL (HELSINKI)
thanks to wild currency dips DIVA’S DOMAIN

in Southeast Asia over the Ute Lemper on a Cold
past year. But investing in War childhood M7
these properties can mean
stomaching some risks.
In Thailand, property is
now 10% to 15% less expen-
sive than it was at the begin-
ning of 2015, partly due to
the depreciation of the Thai
baht, according to real-estate
agency Engel & Völkers
Phuket. Since May 2014, the
Thai baht has tumbled 10.5%
against the U.S. dollar.
Some luxury buyers are SYMPHONY SPACE
taking notice. Barry King, A conductor’s
managing director at Prime Helsinki home M4
Real Estate Phuket, says that
thanks to price declines on in-
land villas, he sold about 20%
more properties priced at $3
million or more in the past
year, though he didn’t disclose
the number of homes sold.
But many potential buyers
are taking a wait-and-see ap-
proach. Andrew Hunter, man-
aging director at Hunter So-
theby’s International Realty in
Phuket, says inquiries about CLOSE ENCOUNTERS
FAMILY RETREAT Swiss financial adviser Martin Lack, above, with his wife, Lindsay, and daughters, Olivia and Bailey, bought this properties priced above $2 Agents recall wild
two-story Bali home last January. Please turn to page M8 closing demands M6
M2 | Friday, January 29, 2016 NY THE WALL STREET JOURNAL.
MANSION
PRIVATE PROPERTIES | CANDACE TAYLOR ONE57 PITCHES
Napa Valley Estate of Robin Williams Sells DESIGNED PAD

With the high-end Manhat-
tan real-estate market slow-
After years on and off the ing, Extell Development de-
market, and several price cuts, cided to pay a designer to
the Napa Valley estate of the furnish a $20.1 million unit at
late comedian Robin Williams its new construction condo-
has sold for $18.1 million, ac- minium One57, down to the
cording to co-listing agent coffee table books and towels.
Joyce Rey of Coldwell Banker Designer Jennifer Post
Previews International. spent about eight months
Mr. Williams built the house, decorating the three-bed-
located in the Mayacamas room, 3,228-square-foot
Mountains, in the early 2000s. apartment, according to Ex-
FROM TOP: FRANK DERAS; EVAN JOSEPH; HAYES DAVIDSON (RENDERING); DBOX (RENDERING)
The estate originally went on the tell’s Graham R. Spearman,
market in 2012 for $35 million who is handling sales in the
with Sotheby’s International Re- building. Ms. Post’s work
alty, then was relisted in April of was “at least a $1 million
2014 at $29.9 million with Ms. renovation,” said Extell
Rey and Cyd Greer of Coldwell founder Gary Barnett.
Banker Previews. Mr. Williams The high-end real-estate
committed suicide in August of market in New York City has
2014 at age 63. After his death softened in recent months,
the price was cut several more Mr. Barnett said. He said he
times, and the house was last plans to try out the same
listed at $22.9 million. Mr. Wil- technique with other units in
liams’s estate didn’t respond to the building in the next few
requests for comment. months.
The buyers of the roughly
650-acre estate are the Tesse-
ron family of Château Pontet- U.S., said co-owner Melanie Tes- property’s vineyards is currently The celebrity provenance of one of the highest ever paid
Canet. French winemakers, the seron. She said they plan to made off-site by local growers. the home had nothing to do for a Napa Valley home with-
family had been looking for a make wine from the property’s “For the moment we’re with the purchase, she said, al- out a winery.
Napa Valley wine property for 18.4 acres of vineyards, but it here to see, look, learn and though “personally, I’m a mas- The buyers were represented
several years, and this is their isn’t yet clear if they’ll build a understand what we could sive fan of Robin Williams.” by William Densberger and Rob
first vineyard acquisition in the winery there. Wine from the do,” she said. Ms. Rey said the price is Landsness of Pacific Union.
MIDTOWN MANHATTAN DUPLEX

PENTHOUSE ASKS $65 MILLION
The penthouse at midtown York developer whose RFR
Manhattan condo project 100 Holding is joining on the project
East 53rd Street will list for with real-estate firm Hines and
$65 million. China Vanke, the world’s largest
The duplex penthouse, on home builder by sales. The
the 60th and 61st floors of the building is slated for completion
building, will measure about in the spring of 2017.
6,760 square feet, said Leon- Designed by the British firm
ard Steinberg of Compass, one Foster + Partners, the building
of the real-estate agents listing will have a 711-foot-high angled
the penthouse. With views wall “to give the facade a little
stretching to Central Park and depth,” Mr. Rosen said. It will
the East River, the unit, seen in be light in color, in contrast
a rendering below, will have with the dark facade of the
four bedrooms, four bathrooms nearby Seagram Building, which
and a powder room, he said. It
will also have a 44-foot long
is owned by Mr. Rosen’s RFR.
Also in homage to the Seagram
KENNETH GRIFFIN LISTS TWO
great room and a gallery with building, 100 East 53rd Street MIAMI CONDOS FOR $73 MILLION
ceilings about 23 feet high in- has a modernist look. Building
tended to display large artwork. amenities include a library, a Billionaire hedge-fund man- around terrace measuring
Sales at the 94-unit building gym and spa treatment rooms. ager Kenneth Griffin is putting about 7,300 square feet. The
launched last week, said Aby Classic Marketing is also his two newly purchased prop- second unit, which is directly
Rosen, the high-profile New listing the property. erties at Faena House in Miami under the penthouse and en-
Beach back on the market for compasses half of the 15th
a total of $73 million, accord- floor, will be listed for $18 mil-
ing to Eloy Carmenate of lion. It has three bedrooms
Douglas Elliman Real Estate, and measures about 4,240
who is listing the property square feet. The unit also has
with colleague Mick Duchon. a terrace measuring about
The penthouse, which en- 2,720 square feet.
compasses the top floor of the Mr. Griffin bought the prop-
building, will be listed for $55 erties, seen in a rendering
million. It has five bedrooms above, in the fall of 2015 for
and measures about 8,270 $60 million. His spokesperson
square feet. In addition to a declined to comment on
roof deck with its own pool, whether he planned to com-
the penthouse has a wrap- bine them or why he is selling.
See more photos of notable homes at WSJ.com/Mansion.

Email: privateproperties@wsj.com
SALE
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EAST 58TH 202 East 58th Street, 212.486.8022
8050VeroBeach.com SOHO 75 Grand Street, 212.219.8022
FLATIRON 876 Broadway, 212.505.8022
Oral representations cannot be relied upon as correctly stating the representations of the developer. For correct representations, make reference to this brochure and to the documents required by Section
718.503, Florida Statutes, to be furnished by a developer to a buyer or lessee.These materials are not intended to be an offer to sell, or solicitation to buy a unit in the condominium. Such an offering shall only MADISON 1100 Madison Ave., 212.628.8022
be made pursuant to the prospectus (offering circular) for the condominium and no statements should be relied upon unless made in the prospectus or in the applicable
purchase agreement. In no event shall any solicitation, offer or sale of a unit in the condominium be made in, or to residents of, any state or country in which such activity would be unlawful. All images and
HastensNY@hastensstores.com
designs depicted herein are artist’s conceptual renderings, which are based upon preliminary development plans, and are subject to change without notice in the manner provided in the offering documents.
All such materials are not to scale and are shown solely for illustrative purposes.
THE WALL STREET JOURNAL. Friday, January 29, 2016 | M3
MANSION
JUMBO JUNGLE | ANYA MARTIN
A SWEET ’16 FOR JUMBO BORROWERS?

The stock-market dip is likely to keep interest rates below 4% for a while longer, which could make borrowing large sums more attractive
The jumbo- a new rule requiring a three-

mortgage day waiting period for bor-
market rowers to receive and review
reached the documents would delay
new highs closings or kill deals, but
in 2015 and lenders, real-estate agents
recent turmoil in global and borrowers largely
stocks is unlikely to slow it adapted to the change, says
down much in 2016, industry John Schleck, Bank of Amer-
experts say. ica’s online and centralized
Lenders provided an esti- sales executive. “We spent a
mated $320 billion in jumbo lot of time getting ready and
mortgage financing in 2015, it paid off,” he adds.
which translates to 19% of all Finally, more borrowers
mortgage lending, says Guy will be able to conduct busi-
Cecala, CEO and publisher of ness virtually this year, a
Inside Mortgage Finance. trend expected to rise rap-
That’s up slightly from 18% idly in future years, says Vic-
of the market in 2014 and tor Ciardelli, CEO of Chicago,
the highest market share Ill.-based Guaranteed Rate.
since 2002, he says. That trend isn’t limited to
While a down stock mar- online lenders either. For ex-
ket might mean less avail- ample, Wells Fargo Home
able cash for some home Mortgage rolled out a new
buyers to purchase an expen- feature for its YourLoan-
sive home, historically peo- Tracker service in which
ple also have shifted assets borrowers can receive and
to real estate as a safer in- upload documentation via a
vestment, Mr. Cecala says. mobile or other digital de-
“Whether that plays out device, as well as track loan
pends on how long the stock progress, says Brad Black-
market stays down,” he adds. well, executive vice president
The market drop is likely and portfolio business man-
to keep interest rates below ager for the company.
CHRIS GASH
4% for a while longer, which Unless the bottom falls
also could make borrowing out of the economy, jumbo
large sums more attractive, lenders predict continued
says Keith Gumbinger, vice demand, Mr. Cecala says. Re-
president of mortgage-rate home prices could spur a Adamo, CEO of Stamford, as low as 15% or even 10%. turned to prerecession levels gional banks and nonbank
website HSH.com. The Fed- homebuying frenzy in the Conn.-based Luxury Mort- Still, borrowers with a credit nationwide. But 39 counties lenders were able to expand
eral Reserve also is less spring, says Ray Rodriguez, gage. An unexpected rate dip score of 740 or above who in the U.S.—covering Denver, their jumbo mortgage vol-
likely to raise short-term regional mortgage sales man- in winter-spring 2015 trig- put 20% down can expect to Nashville and Napa, Calif., ume largely because of con-
rates this spring, he adds. ager for Cherry Hill, N.J.- gered a refinance frenzy. get the best interest rates. among others—were bumped tinued enthusiasm on the
Mr. Gumbinger expects based TD Bank. Existing bor- Loosened credit-qualifica- Jumbo borrowers have into the high-cost category, part of big banks to buy and
the Fed to raise short-term rowers with adjustable-rate tions rules will continue in loans that exceed conform- so borrowers there now hold them in portfolio.
rates no more than two to mortgages nearing the end of 2016, but nothing like what ing limits of government- qualify for more financing. Wells Fargo remains the
three times in 2016, with the their fixed-rate may also rush occurred in the 2000s that back loans, $417,000 in most Also last year, the Con- nation’s largest jumbo
average 30-year, fixed-rate to refinance, he adds. led to the mortgage crisis, places and $625,500 in some sumer Finance Protection lender, both for originations
jumbo not topping 4 5/8%. Still, overall refinance Mr. Adamo says. Last year, high-cost areas. The Federal Bureau introduced new doc- and purchasing loans from
Five-year, adjustable-rate rates are expected to be minimum FICO scores for Housing Finance Agency uments that aim to make it other lenders to hold in
mortgages could go up to lower than in 2015 since so jumbos dropped to 660 for (FHFA) didn’t raise baseline easier to compare different portfolio. “We have a strong
4%, he adds. many borrowers have al- some lenders, for example, limits last year because mortgage offerings. Many appetite for jumbo lending,”
Fear of rising rates and ready refinanced, says David and down payments could be home prices haven’t re- lenders were concerned that Mr. Blackwell says.
THIS VIEW COULD BE YOURS FOR A LIFETIME.

Our lavishly-appointed studio and one- and
two-bedroom suites include breathtaking
views, designer furnishings, a fully-equipped
kitchen or kitchenette and the utmost
in personalized service, with the world
of Atlantis at your doorstep.
INQUIRE NOW ABOUT SPECIAL PRICING ON PREMIUM

UNITS ORIGINALLY PRICED FROM $695,000
Visit ownthereef.com/wj or call 888.605.3803
This commercial message does not constitute an offer to sell or a solicitation of an offer to buy a unit in the condominium.
No solicitation, offer or sale of a unit in the condominium will be made in any jurisdiction in which such activity would be
unlawful prior to registration under the securities, condominium or land sales laws of such jurisdiction. Only representations
and statements in the purchase and sale agreement and other applicable legal documents are binding and correctly state
the representations of the developer. *Offer subject to change without notice and cannot be combined with any other offer.
© 2016 All rights reserved - The Reef Residences at Atlantis.
M4 | Friday, January 29, 2016 THE WALL STREET JOURNAL.
MANSION
INSIDE STORY
A Maestro’s Private Symphony Space

In Helsinki, a conductor and his partner choose an unusual home in a courtyard; playing piano at 1 a.m.
down before they could be trans-

BY J.S. MARCUS
1 formed into modern homes.
In the couple’s previous apart-
THE ONCE BARE-BONES struc- ment in a 19th-century building
ture, hidden in a courtyard behind shared with the Turkish Embassy,
an upscale apartment building in Mr. Lintu had to forgo late-night
Helsinki, Finland, was likely used music making in deference to Fin-
in the past to shelter horses and land’s residential rule that re-
store coal. stricts apartment noise after 10
But Finnish conductor Hannu p.m.
Lintu and his partner, business- “Now,” he says, referring to his
school professor Pekka Mattila, 1 or 2 a.m. bedtimes, “I can play
saw the spot as a luxury refuge. the piano whenever I want. He
They paid €1.2 million, or about adds: “I hadn’t realized how much
$1.3 million, for the space. I missed that.”
Early last year, the couple gave The two men have busy sched-
up their high-end rental in the ules and travel extensively—Mr.
Kaivopuisto neighborhood, which Lintu’s recent engagements have
hosts many embassies, to buy the included appearances with the
cavernous carriage house in the Cleveland Orchestra, the Baltimore
hipster enclave of Punavuori, be- Symphony Orchestra and Tokyo’s
hind the tree-lined, tram-traveled New Japan Philharmonic. Arrang-
Bulevardi. ing a moving date took some pre-
They were able to negotiate on cise planning. After choosing a
the sales price somewhat “because January day last year, and setting
this is weird,” says Mr. Lintu, re- aside two weeks, the couple had to
ferring to the placement of the postpone the move until March. A
structure. The sellers were a fam- leaky radiator had caused some
ily in western Finland who had ground-floor water damage.
been using it as a pied-à-terre and They condensed the unpacking
makeshift office. and arranging to a matter of days,
“In this city,” says Mr. Lintu, “if HELSINKI HAVEN 1. Finnish conductor Hannu Lintu in his late-19th-century home, with Shurik, a Russian rescue dog. then took a few more months to
you pay €1.5 million or €2 million, 2. The conductor’s piano and scores are in the second-floor study. 3. The living room features lively colors and an ex- settle in. A decade-old renovation
you want a sea view.” posed-brick ceiling. 4. The sauna. 5. The kitchen. 6. The 2,150-square-foot home is in the hipster enclave of Punavuori. by the previous owners, who were
The couple does without such seldom there, meant that little
views, and a limited amount of work needed to be done by the
natural light on the ground floor, 2 3 new owners. By July, says Mr.
but feel rewarded by the quietness Lintu, it felt like home.
and privacy that only an entire He says plans for entertaining
house can offer. prodded the couple to get things
The three-story, 2,150-square- done. “It helps to invite people”
foot structure, dating back to the right after a move, he adds.
late 19th century, would have been The hardest part of the move,
used to service the lavish apart- he says, was dealing with all the
ments in front—likely providing books and musical scores. Mr.
residents with stables, coal and a Lintu insisted on packing his frag-
staffed kitchen. 4 ile scores himself. The couple was
The previous owners had a able to take along the living
three-bedroom configuration. The room’s massive bookshelves, but
couple knocked down a bedroom they bought a new Italian sofa for
wall to create a big second-floor the second-floor study—now Mr.
study, and converted a smaller Lintu’s go-to spot.
bedroom into a walk-in closet. Unlike many other Finnish
Now the home is a spacious one- homeowners, who are drawn to
bedroom, with two full bathrooms, the cool white look of Nordic mini-
two powder rooms and a sauna. malism, the couple prefer some-
The soaring ground-floor ceil- 5 6 thing livelier.
ings provide ample space for the “I have never been a huge
couple’s extensive library, and the friend of the simple Scandinavian
study allows room for the baby- style,” Mr. Lintu says. “I have seen
grand piano and many musical beautiful places like that, but I
KRISTA KELTANEN FOR THE WALL STREET JOURNAL (6)
scores belonging to Mr. Lintu, the need to have colors.” The interior
47-year-old chief conductor of Hel- features bold rugs bought in Mar-
sinki’s Finnish Radio Symphony rakesh and color-rich art.
Orchestra. Prof. Mattila, 37, is on Right now, the couple is content
the marketing faculty of greater with two floors, but they have
Helsinki’s Aalto University. their eye on the unused attic. “The
Cities such as New York and third floor is interesting,” Mr.
London have often preserved their Lintu says, “but we haven’t de-
old carriage houses as exclusive cided what do to with it.”
residences. But in pragmatic Hel- One day, “we may want to build
sinki such structures were typi- an entirely new study there,” he
cally treated as obsolete after adds. “Or we may just put in a
World War II and so were torn cross-trainer.”
© 2015 Dow Jones & Co., Inc. All rights reserved. 6DJ4992
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THE WALL STREET JOURNAL. NY Friday, January 29, 2016 | M5
Exceptional New York Homes
1 2 3
MANSION 25-FOOT WIDE $35M STYLISH FOUR-BEDROOM CONDO $5.4M 7 PENTHOUSE WITH VIEWS $2,219,500
57 E 64th St. Limestone mansion 25-wide, by CPH Gilbert grand E 70s/2nd. 10’ceilings, 3.5 baths, top-of-the-line chef’s eat-in kitchen. South East Ave. Incredible triple mint penthouse home that just
rooms, abundant light, high ceilings, elevator on 7 levels, sculptural Sun flooded, and in excellent condition. Unobstructed views. Full underwent an extensive renovation done to perfection. This 2 BR,
staircases with leaded glass skylights, best deal. WEB# 3465797 service luxury building with top amenities. WEB# 3509968 2.5 bath condo features spectacular views of the New York City
Branko Vujanic (m) 917.406.5588 Sharon E. Baum 212.836.1036 Harbor and the Statue of Liberty. WEB# 3531101
Fabienne Lecole (m) 917.405.6336
MINT UPPER EAST SIDE MANSION $29.5M 3 3-4 BEDROOM CONDO $4.99M
E 60s off Madison Ave. Sun-flooded, newly renovated mansion W 53rd St. Located in the heart of midtown, on the 23rd floor of the STUNNING $2.175M
encompassing over 9,600 square feet with four outdoor spaces, renowned Museum Tower, enjoy spectacular city views from this south E 75th St. Beautifully designed home featuring an entrance gallery,
grand proportions & top-of-the-line finishes including Christopher and east facing corner apartment. WEB# 3588437 grand living room, corner master bedroom, stunning library/dining
Peacock kitchen and Clive Christian cabinetry. WEB# 3481008 Sara Gelbard 212.242.9941, Paul Kolbusz 212.500.7026 room, powder room, sunny kitchen with washer/dryer. Full service
Leighton Candler 212.937.6677 white-glove prewar, gym, storage. WEB# 3441918
4 3-4 BEDROOM WITH VIEWS $4.795M Abby Levine 212.836.1011
LEGENDARY PRASADA $11.5M Central Park West. Breathtaking cityscape and Central Park views
Central Park West. Coveted address on Central Park West. Five from this stunning triple-mint 3-4 bedroom condo on Central Park PENTHOUSE DUPLEX MINT $2.15M
to six bedrooms, 4 baths plus plenty of living space. Double living West. This apt has it all and is truly one of a kind. WEB# 3532232 E 86th St. Mint condition three bedrooms, three baths, dining room,
room, paneled dining room both with decorative fireplace. Views, Meghan Kelly Gefaell 212.937.7012 windowed kitchen, thru wall air conditioning, large picture windows,
location and white-glove service. WEB# 3504065 great views, two spacious terraces. WEB# 3479642
Rose Ann Nielsen 212.875.2974 BEST PRICED UES 3 BR/3 BATH CONDO $4.495M Edith Salton 212.360.6765, Kerry Martin Verille 212.360.2299
E 66th St. Sunny high floor, triple mint, three bedroom/three bath,
1 CLASSIC PREWAR ELEGANCE $12.75M 2,285 square feet condo the Manhattan House, two balconies, east, TWO BEDROOM/TWO BATH $1.895M
5th Ave. Grand 3,400 square feet+/-, prewar 3 bedroom/4 bath co- west, north exposure, ample closet space. WEB# 3493704 E 70th St. Pied-à-terre perfect and sunny south facing home with
op with 66 linear feet directly on CP, living room with wood burning Marie-Claire Gladstone (m) 917.664.8157 tree-lined townhouse views. Located across from the Frick and a
fireplace, formal DR, library, eat-in kitchen, staff room, thru-wall air half block to Central Park, it doesn’t get better than this. Pied-à-
conditioning. Pets OK, fully staffed building. WEB# 3533794 TRIPLE-MINT TOWNHOUSE $4.25M terres welcome. No financing. WEB# 3604079
John Gasdaska 212.821.9138, Jonathan Conlon 212.508.7162 240 W 121st St. Renovated to perfection. This townhouse features Linda Feder 212.605.9292
4 bedrooms, 3.5 baths plus an office, terrace, 6 fireplaces, central
ULTRA CHIC PLAZA LIVING $10.9M heat/air and a fantastic garden. This is truly a unique home located 8 LUXURY AT THE VENETO $1.395M
1 Central Park South. Triple mint 2 bedroom/2.5 bath at the highly on Harlem’s best block. WEB# 3531097 E 53rd St. Glamorous, sun filled 1 bedroom, 1.5 bath residence with
sought after Plaza Residences. High ceiling with sun-flooded Fabienne Lecole (m) 917.405.6336 floor-to-ceiling UV protected windows, high-end kitchen, powder
eastern views over Fifth Avenue and top-of-the-line chef’s kitchen. room, washer/dryer, and mahogany floors. Full service with gym,
Elegant and private master suite. WEB# 3414445 LUXURIOUS THREE BEDROOM CONDO $3.45M lounge with garden, valet parking. WEB# 3532511
Leighton Candler 212.937.6677 E 76th St. Sun flooded 3 bedroom/3 bath on high floor, open city Michael Spodek 212.323.3232
views south, east and north, huge Master bedroom with ensuite bath,
W/D. Full service white-glove condo with gym. WEB# 3610806
Michael Spodek 212.323.3232
GRACIOUS PARK AVENUE CLASSIC SIX $3.375M

Park/70th. Sun flooded home in excellent condition. Living room,
dining room, 2 bedrooms, 3.5 baths, windowed eat-in kitchen with
top appliances, staff room, washer/dryer. Full service postwar co-
op with gym, pet-friendly. WEB# 3514359
Sharon E. Baum 212.836.1036
SUNNY PREWAR EIGHT-ROOM ESTATE $3.295M

E 63rd St. Beautiful classic eight-room home in a top prewar cooperative
building just steps off Park Avenue with high ceilings and hardwood
floors. South-facing and bright. 3-4 bedrooms. WEB#3532085
4 Meghan Kelly Gefaell 212.937.7012 5
CHARMING UPPER EAST SIDE TOWNHOUSE $9.9M 5 BEST CONDO ON UPPER WEST $2.89M LOFTY, LIGHT AND LOVELY $1.025M
E 80th and Madison Ave. Sun flooded 5-story townhouse. Perfect W 76th St & Broadway. Impeccable 14th floor 2 bedrooms, 2 baths, W 42nd St. Sprawling live work one bedroom loft in the full service
proportions, lovely entertaining spaces with renovated kitchen. 1,321 SF (123m2) in the premier Laureate Condominium, sunny Armory offers comfort, luxury and lenient sublet policy, too.
5 bedrooms plus private master floor with library and renovated south east exposure and 10-foot ceilings. WEB# 3465673 Maintenance 62% deductible. WEB# 3492105
bath. Separate grand floor apartment. WEB# 3483006 Alexander Pisa 212.572.3178 Jodie Garay 212.941.2622
Leighton Candler 212.937.6677
FULL PARK VIEWS $2.795M LOFT LIKE A ONE BEDROOM $950K
EXQUISITELY RENOVATED $7.999M Fifth Ave. Incredible Park views from every window in this triple LIC/27-28 Thomson Ave. 1920 building with full amenities. This
West Village. Downtown luxury living at Morton Square with four mint split 2 bedroom/2 bath Robert Stern Condominium with open loft has a separate sleeping area. Great lights and very good
bedrooms and four full baths. Excellent light & generous proportions in chef’s kitchen. The building is full service, with roof top spectacular closet space. Washer/dryer in apartment. Swimming pool, 24 hour
an enviable location with exceptional amenities. WEB# 3436038 pool, all amenities. Very unique. WEB# 3506734 doorman. Not to be missed. WEB# 3528094
Dennis Margulies 212.444.7881 Fabienne Lecole (m) 917.405.6336 Hanifa Scully 212.875.2859
PREMIER PARK AVENUE $6.75M 6 1025 FIFTH AVENUE 3EN $2.4M SUN FLOODED LARGE ONE BEDROOM $845K
Park Ave. 4 bedrooms plus 2 staff rooms/4 baths. Incredible layout UES. In top notch condition this sophisticated, smartly laid out Harlem/117 W 123rd St. Very large one bedroom, sun-filled condo
with direct Park Avenue views, white glove co-op. 4 exposures, high 2 bedroom, 2 bath has excellent proportions and a wonderful featuring a private terrace, oversized living room, high ceilings,
ceilings, central air, washer/dryer, grand rooms, oversized windows, expanse of living space. A terrific offering that makes it leisurely to huge thermal windows and abundant closets. WEB# 3490780
original prewar details. WEB# 3512198 experience a fine standard of full service living. WEB# 3505877 Fabienne Lecole (m) 917.405.6336
Elizabeth Sahlman/Liora Yalof 212.323.3241 Stefania Cardinali (m) 516.443.0171
ARTIST STUDIO $350K
2 SUPERB 3 BR/3.5 BTH AT HUYS – SPONSOR UNIT $6.35M SKY HIGH TRUMP PLACE PENTHOUSE $2.395M LIC/27-28 Thomson Ave. Rarely available and will fit perfectly a
Park Ave. Designed by Piet Boon, this 3 BR/3.5 bth home offers dramatic Riverside Boulevard. Top floor corner penthouse with stunning music studio or a Photographer. The space has no window. Located
11.5 ceilings with south and west exposure, loggia and W/D. Full service skyline and river views. Great investment or home. Extra-large in 1920 building with 24 hour doorman and great location for
building with rooftop, gym, rec room, media room. WEB# 3534026 2 bedroom/2 bath with 11’ ceilings, floor-to-ceiling windows, chef’s subways. Flexible showing. WEB# 3531839
Maria Pashby (m) 917.520.0592, 404 PAS Sales Gallery 212.725.0404 kitchen, spa-like baths, hardwood floors. WEB# 3496624 Hanifa Scully 212.875.2859
Ellen Raines Martin (m) 917.734.7525, Flora Resnick 212.937.6718
MINT 1-5 BRS AT THE CHATSWORTH $5.7M SPECTACULAR VIEW ONE BEDROOM $4,000/MO.
UWS. New development - magnificent homes at 344 W 72 St with HI-FLOOR SUN-FLOODED 2 BR AT RITZ TOWER $2.25M Murray Hill/E 38th St. Spectacular south panoramic view, one
RSD Park at your front door. Designed by Pembrooke and Ives. Coffered Park Ave. Sun-flooded, renovated, hi-floor corner 2 bedroom/2 bath bedroom/one bath condo with balcony, lots of closets, new stainless
ceilings, herringbone floors, W/D and custom cabinetry. Low monthly home at iconic Ritz Tower. White glove building with hotel services, steel appliances, washer/dryer, white oak parquet floors, pool and
fees. F/S bldg with superb amenities. *CD# 13-0004 WEB# 3402954 fitness center and party room. WEB# 3511503 gym. Pets OK. WEB# 3529775
Maria Pashby (m) 917.520.0592, Joanna Pashby (m) 917.623.9123 Maria Pashby 917.520.0592, Joanna Pashby 212.893.1442 Branko Vujanic (m) 917.406.5588
6 7 8
FOLLOW THE CORCORAN GROUP A name doesn’t define a company. The people do.
Be part of a company that believes people are greater than numbers.
CO R CO R AN. CO M/BEGR EA TER
Real estate agents affiliated with The Corcoran Group are independent contractor sales associates and are not employees of The Corcoran Group. Equal Housing Opportunity. The Corcoran Group is a licensed real estate broker located at 660 Madison Ave, NY, NY 10065. All listing phone numbers indicate
listing agent direct line unless otherwise noted. All information furnished regarding property for sale or rent or regarding financing is from sources deemed reliable, but Corcoran makes no warranty or representation as to the accuracy thereof. All property information is presented subject to errors, omissions,
price changes, changed property conditions, and withdrawal of the property from the market, without notice. All dimensions provided are approximate. To obtain exact dimensions, Corcoran advises you to hire a qualified architect or engineer.
M6 | Friday, January 29, 2016 NY THE WALL STREET JOURNAL.
MANSION
IN THE TRENCHES
Close Encounters of the Canine Kind

Two real-estate agents recount the strangest requests they’ve seen made—and granted—at closing
Q. Have any clients made unusual demands

when closing a deal?
Josh Flagg, executive estates sented the buyer, who had inherited
director, Rodeo Realty, Beverly a ton of money and was looking at
Hills; appears regularly on “Mil- properties with this kind of nutty
lion Dollar Listing Los Angeles.” attorney who was like a friend and
adviser. We ended up selling it for
I negotiated a deal in Holmby pretty close to $18 million.
Hills where I represented both So we’re at the closing table at
sides. I go to look at the house with the property management office,
a couple and their son, who is with the buyer, the nutty attorney,
probably 6 or 7 years old, and a someone from the closing depart-
golden retriever comes out on the ment and a couple of attorneys. In
lawn. The kid plays with it while we the conference room, there are
all look at this huge estate and I three huge pictures on the wall, in-
don’t think anything of it. cluding a beautiful picture of the
Either one of my assistants or living room of the property the guy
teammates writes up an offer on is buying. It’s a nice, blown-up pho-
the property from these buyers tograph in a big, heavy, wooden
and I look over the paperwork. frame, about 4 feet across.
They offer very close to full price The nutty lawyer looks up and
for a $24 million deal. And that’s says, “Hey, that’s your living room.
when I see the additional terms: It You should hang that in your
says the sale is contingent on the house.” I say, “I can get you an-
inclusion of the dog. other picture.” But he says, “No,
I call them and say, “You’ve got this is good.” He stands up, takes
to be kidding.” But they’re insistent: the picture off the wall and puts it
The kid likes the dog and they don’t on the conference table.
want to say no to the kid. I figure I say, “That’s their property,”
this deal is over. I call the seller and meaning the management company
tell him, and he just chuckles. So I whose office we’re in. And he says,
say, “No, you don’t understand. I’m “We just spent a lot of money.”
being serious.” And he says, “How Which was true. He’s about to hand
much is the offer?” I tell him it’s me a check for $700,000, so I really
$24 million and he says, “Uh, let me don’t feel like I can say anything. I
speak with my wife.” turn to the woman who works for
What happened? It was a $24 the management company and
million offer! What do you think softly say, “Are you going to say
happened? They threw in the dog. something?” And she says no. Ev-
eryone at the table just sits there
Mark D. Friedman, agent, the staring at each other and at the
Friedman-Rosenthal Team, Hal- picture laying there on the table.
stead Property, New York City; So I just say, “Good luck getting
also makes guest appearances as past security.” And in fact they
an actor on “Law & Order: SVU.” walked past security and out of
LASZLITO KOVACS
the building with the frame with
I had a $19 million listing on no problem at all.
Central Park West, owned by a very —Edited from interviews
famous entertainer. I also repre- by Katy McLaughlin
Prewar Classic 8 on East 66th Pied-a-Terre at Rockefeller Center

Featured in House & Garden & NYT. LR with wet bar, 20th floor 1BR/1.5 bath with Rockefeller Plaza views,
WBFP, formal DR, den, library, 2 baths. Full service co-op. 10' ceilings, European kitchen, W/D. FS condo. $1.795M.
$2.995M. Web 13258342. Kirk Henckels 212.452.4402 Web 13291515. Charlotte Van Doren 212.585.4521
15th Floor Corner 1BR, 1.5 Bath on East 59th London Terrace 3000 SF on West 24th
2 balconies, stellar city views. Wall-to-wall windows, High floor open views. LR with WBFP, DR with bar, open
open LR/DR; custom kitchen. Full service co-op. $1.195M. kitchen, 4BRs, 4 baths. Prewar full service co-op with pool.
Web 13981515. Linda Basilice-Hoerrner 212.452.4435 $7.95M. Web 13688449. John Barbato 917.254.7630
Gold Coast 3 Bedroom, 3 Bath Triple Mint Prewar Co-op CPW 9

Spacious LR, FDR, W/D. MBR suite w dressing area, closets Fabulous entertaining rooms, 3-4BRs, 4 baths, spectacular
& bath. Full service co-op. $2.65M. Web 14023948. kitchen, family rm at The Majestic. $6.9M. Web 14061678.
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THE WALL STREET JOURNAL. NY Friday, January 29, 2016 | M7
MANSION
HOUSE CALL | UTE LEMPER
A German Performer’s Cold War Childhood

The actress, singer and composer looks back at a divided family and her passion for the unusual
In the 1960s, when I

grew up in Münster,
Germany, the city was
still recovering from
World War II and cop-
ing with the Cold War.
Everyone was expected to con-
form to a rigid standard of nor-
FROM LEFT: CHRIS SORENSEN FOR THE WALL STREET JOURNAL; UTE LEMPER
malcy, but I resisted. I had feelings,
dreams and passions, making it hard
to fit in. I escaped through music.
My family lived in a nine-family
apartment building on the outskirts
of Münster. It was a drab, low-in-
come complex built in the 1950s, IN TUNE Ute Lemper in her Man-
and we lived in a small apartment hattan apartment, left, and in Mün-
on the second floor. I shared a room ster, Germany, around 1969, above.
with my older brother, Martin.
My parents didn’t own a car national production of “Cats.”
until 1975. The city had a bicycle I first came to New York in 1987.
culture, and my father, Josef, I was invited to sing Kurt Weill at
biked to his banking job and my Merkin Concert Hall. New York
mother, Elfriede, rode her bike to took my breath away, and I came
the market. back annually to perform.
The entire old city of Münster Today, I live in a 10-story apart-
had been leveled in the last ment building on New York’s Up-
months of the war. Five years per West Side. I moved there in
later, it was rebuilt to match its the way was lifeless. searching for people or items we and tap followed. When I was 13, I 1998 when I was on Broadway in
original gothic beauty, but there In West Berlin, we crossed over might be smuggling out. My father sang with jazz groups, moving on “Chicago.” I turned two apart-
were plenty of anonymous modern to East Berlin, where we were re- was quite angry. to rock bands when I was 16. I was ments into a four-bedroom duplex,
buildings that went up as well. minded that we had to be out be- From an early age, music con- listening to pop music and R&B, so there would be plenty of space
The 1960s and ’70s were fright- fore 8 p.m. On the other side, I sumed me. Though my father was including Earth, Wind & Fire, Ste- for my four children—two with my
ening years. The Cold War was on was shocked. There was no color, a banker, he had the soul of a mu- vie Wonder and Joni Mitchell, but husband Todd Turkisher.
and the East German border was no ads and no supermarkets. The sician. He could play the piano, the greats were Ella Fitzgerald and Years ago, I bought a one-bed-
sealed with metal fences and buildings were still damaged from guitar, violin and other instru- Sarah Vaughan. room on the top floor that allows
minefields, and guarded by Soviet the war with no restoration or ments. He also listened to classical The music didn’t have any of me to work undisturbed on my
and East German troops. My care. Toilets were outside apart- records. His taste was cutting- our rigid German identity, and I composing. It’s a haven, with a
mother had aunts and cousins ments and shared with neighbors. edge—Mahler, Schoenberg, Berg, didn’t understand half the words. roof terrace with hundreds of
trapped on the other side. Everyone stood in long lines in Busoni and Satie. My mother, who But I was completely inspired. plants. It’s my little Tuscany.
Each year, my mother would front of the egg shop, the milk had a soprano opera voice, liked I left Münster at 18 to study —As told to Marc Myers
send care packages of food and shop or the butcher shop. more conventional classical music. drama in Vienna. Those were
sweets to her family. In 1975, when Still, there was plenty of fun and She enjoyed singing operetta as my tough years. I didn’t have much Singer-actress Ute Lemper, 52, star
I was 12, we drove to see them. laughter that day, followed by a dad accompanied her on piano. My money, and my flat was without of the Broadway revival of “Chi-
Our first stop was Helmstedt, tearful goodbye. As we left East brother and I rolled our eyes and heat. I’d sleep in my coat wearing cago,” is best known for her inter-
where the 110-mile highway to Berlin that evening, we had to get listened to Pink Floyd. gloves and a hat. pretations of Kurt Weill’s work.
Berlin began. The highway didn’t out of our car while guards un- I started taking ballet classes My first big break came in 1982, Her new album, with Paulo Coelho,
have exits and the scenery along screwed all seats and trunk panels when I was 6, and modern dance when I won a part in the first inter- is “9 Secrets” (Steinway & Sons).
MANSION
SOUTHEAST ASIA VACATION-HOME DEALS

Continued from page M1 been dragged down by the overall
million have risen in the past year— Indonesian economy. “The market is
but actual sales have been soft. quite lackluster. Buyers are probably
Fears about political and eco- not as eager as before,” he said.
nomic instability are likely scaring Authorities have stepped up se-
off buyers, agents say. Since the curity on the island after recent at-
May 2014 coup that removed dem- tacks in Jakarta, which were linked
ocratically elected Prime Minister to Islamic State. Bali, which is ma-
Yingluck Shinawatra, Thailand has jority Hindu rather than Muslim, is
been under military rule. The re- over 700 miles away from the Indo-
gime has tried to woo foreign in- nesian capital. Earlier bombings in
vestment, but the economy re- 2002 and 2005 on the island led to
mains shaky. steep drops in tourist arrivals.
Agents and analysts say the mil- No currency in the region per-
itary junta hasn’t created signifi- formed as poorly as the Malaysian
cant upheaval in the daily life of ringgit in 2015, which fell over
Thailand, particularly on the island TROPICAL PARADISE A bungalow on Martin Lack’s Bali property, above left; 22.7% against the U.S. dollar. For
of Phuket. “The tourism sector has Currency Crunch the pool and garden, above; a Bali landscape, below. foreign buyers, that has created
benefited from the relative politi- How three Southeast Asian currencies some opportunities in the luxury
cal calm since the military took have performed against the U.S. dollar housing market.
over,” said Krystal Tan, Asia Econ- since the start of 2015. PropGoLuxury, an online luxury
omist at research firm Capital Eco- 5% real-estate platform, says there has
nomics. Tourist visits rose 19% in been a 45% spike in inquiries into
2015 compared with the year ear- luxury Kuala Lumpur properties
lier, despite a mid-August bombing 0 this year, with the majority coming
in Bangkok. from Singapore.
The number of wealthy Chinese –5 So far, however, agencies say
MARIO JUANITO REYNALDI FOR THE WALL STREET JOURNAL (3)

buyers in Southeast Asia, already they haven’t seen a spike in pur-
on the rise, could also pick up as chases by foreign buyers. The gov-
the weakened yuan and volatility in –10 ernment, to curb speculation,
the Chinese markets add pressure raised the minimum amount for
on wealthy Chinese to get money foreign purchases of property to
–15
out of the country, analysts say. MYR1 million ($237,316) in March
Last January, Dominic Powers, and banks tightened lending re-
Thai baht
who is based in Hong Kong as the –20 strictions, making it more difficult
Indonesian rupiah
managing director of marketing for buyers to obtain loans.
Malaysian ringgit
firm Epsilon, bought a 6,000- Foreigners may also be “spooked”
square-foot house north of Laguna, –25 by the political climate, says Singa-
Phuket. Mr. Powers, age 43, wanted 2015 ’16 pore-based property consultant
a place that he and his wife could Source: Tullett Prebon Khalil Adis. Malaysia’s anticorrup-
retire to and that his three daugh- THE WALL STREET JOURNAL. tion agency said Wednesday it
ters could call home. wants to review a decision by the
He decided to fix the price in other popular vacation-home desti- priced properties, he added. years of probation by the Florida country’s top prosecutor clearing
Hong Kong dollars, because he nation, saw an 11.3% drop in the In- Martin Lack bought a classic Southern District Court. Prime Minister Najib Razak of
“was not sure in January which donesian rupiah against the U.S. two-story Balinese house of teak “After 30 years in banking, I just wrongdoing regarding nearly $700
way the Thai baht would go.” He dollar in the past year. A slowing In- wood on 1,400 square meters of opened a language school in Bali. million transferred into the Prime
estimates that had he set the price donesian economy has also dragged land last January, at what he said New life, new business, but the Minister’s private bank account. Mr.
in baht, he would have saved the down the property market in the was likely “the peak of the market.” same family and that’s the most im- Najib has denied any wrongdoing.
equivalent of about 700,000 Hong commodity-rich nation. Dominique The Swiss financial adviser said he portant,” Mr. Lack said of his life in Brokers say the slowdown in
Kong dollars when he finally closed Gallmann, CEO of Bali-based real-es- and his American wife moved to Bali. The Lacks bought the house, sales presents a good buying oppor-
on the house in September, due to tate broker Exotiq Properties, says Bali full time two years ago, partly the family’s third in Bali, because tunity, especially as new develop-
the baht’s plunge in the interven- the average sales price for the because property in Hong Kong is they needed a bigger house. Mr. ments are going up. The number of
ing months. Mr. Powers said he agency has dropped to less than so “outrageously expensive.” Lack said he didn’t prioritize the high-end condominiums priced
wasn’t concerned about losing out $500,000 from $750,000 in 2014. Mr. Lack, a former UBS banker, currency exchange in his decision to above 1,200 ringgit a square foot
due to currency fluctuations, since Luxury prices in South Bali dropped pleaded guilty in 2014 to federal buy. will increase to 5,192 units in
he was focused on finding a new an average of 15% to 25% by the end charges of helping Americans evade Mr. Lack said if he ever decided Greater Kuala Lumpur at the end of
home for his family. of 2015, with the segment above $1 U.S. taxes by setting up Swiss bank to sell his house, it would be more this year, estimates Savills Research,
The Indonesian island of Bali, an- million suffering more than lower- accounts. He was sentenced to five difficult because Bali’s economy has compared with 2,216 units in 2014.
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pool, Ipe Wood deck, outdoor Gas kitchen. Viking, Miele, Subzero, Waterworks principal rooms. 242 feet of direct ocean frontage, +/- 35,000 total square from 2 terraces. Open floor plan with high-end appointments and designer
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MANSION
RELATIVE VALUES | SARAH TILTON
LOOK AT THE SUNNY SIDE

Three homes in balmy locales where the notion of snow boots and tire chains elicits chuckles
L-R: DAVID MOORE (2); PARTNERS TRUST (2)

ONE SOTHEBY’S INTERNATIONAL REALTY (2)
$53 million $7.89 million $18.95 million

Miami Beach, Fla. Honolulu Malibu, Calif.
Four bedrooms, five full baths, two half-baths Four bedrooms, six full baths, two half-baths Five bedrooms, six full baths, two half-baths
This beachfront, ninth-floor penthouse measures 6,807 square This 9,123-square-foot home has ocean and Diamond Head views. This roughly 8,000-square-foot home sits on more than 4.2
feet and has balconies on the east and west sides. On the 10th The house includes two master suites, a billiards room with a bar acres in a gated community. A 2,500-square-foot master suite
floor is a private pool and roof deck with a bar, lounge, barbecue and a yoga room. The spa room has a steam shower and a dry opens onto a 1,500-square-foot terrace. The home also has a the-
area and garden. The unit has ocean and city views, and is being sauna. The outdoor space has a pool, lounge and putting green. ater with a a wet bar. The pool looks out at the ocean.
sold fully furnished. Agents: Kai McDurmin and Douglas Shanefield of Coldwell Banker Agents: Katie Bentzen and Sarah Kosasky of Partners Trust;
Agent: Jorge Uribe of One Sotheby’s International Realty Pacific Properties Rommy Shy of Royalty Realty
ADVERTISEMENT
Distinctive Properties & Estates

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WSJ. Insights Mindset of the Luxury Real Estate Buyer, Base: Respondents ) # 6 55,

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MANSION
MIAMI’S COCONUT GROVE GETS GLITZY

5 miles
5 km MEET
Miami THE
Int’l airport NEIGHBORS
M IAM I South Beach
From actors
Atl an tic to athletes to
O cean
Coconut Grove big CEOs, here
are some notable
residents of
Biscayne
Coconut Grove
HEADSHOTS FROM TOP: WIREIMAGE/GETTY IMAGES; ALEXIA FODERE FOR THE WALL STREET JOURNAL; ASSOCIATED PRESS; GETTY IMAGES (2); PATRICK MCMULLAN (3)
B ay
Continued from page M1

“There’s hardly a street that
hasn’t had something knocked
down” for redevelopment, says
Ms. Dufay, who hopes her future
buyer will keep her home intact.
Located south of the down-
town area, the 5.6-square-mile CHRISTIAN
village of about 20,000 people SLATER
predates the founding of Miami, Actor
which annexed the area in 1925.
Unlike nearby Miami Beach, Co-
conut Grove has no sandy
beaches or direct oceanfront. In
the 1950s and ‘60s, beatniks and
hippies were nonetheless drawn
to the area’s walkable core and
eclectic housing, and it has re-
tained a bohemian spirit since,
according to Paul George, a pro- JORGE PÉREZ
fessor at Miami Dade College. Developer, Related
Winding side streets and lush Group
vegetation recall an older Grove,
established by English and Baha-
mian settlers, where Mediterra-
nean villas meet colorful timber-
frame conch houses. On some
blocks, you might spot a muster of
peacocks dawdling in the road.
“It’s different than the rest of
the city—it isn’t manicured like
other neighborhoods,” said Ber- ERIK
nardo Fort-Brescia, the co-founder SPOELSTRA
of design firm Arquitectonica and Miami Heat coach
a longtime resident. He lives with
his family in a modern waterfront
home in a junglelike private com-
munity thick with trees.
Mr. Pérez, the billionaire devel- VILLAGE SCENES The village of Coconut Grove contains about 20,000 people and predates the founding of Miami. An organic farmer’s
oper and founder of Related market, top; ‘the barge’ and a statue at the Vizcaya Museum & Gardens, above left and right; the marina, middle right.
Group, lives down the road in a
10,000-square-foot Venetian-style
palazzo. Nearby, according to re-
cords, is Jonathan Lewis, an inves- MIKE
tor and son of the late Progressive FERNANDEZ
Insurance chairman, Peter Lewis Founder, MBF
as well as Carlos Migoya, the CEO Healthcare
of Jackson Health System (and oc-
casional tennis partner to Mr.
Pérez, the developer says).
The spirit persists in the zoning
code, which forbids adjacent homes
to be exactly alike and mandates
BLOOM IMAGES (RENDERING)
that removal of historic trees, like

the village’s prized banyans and
oaks, must be cleared by the city,
says Luciana Gonzalez, assistant di- EMERSON
rector of planning and zoning. FITTIPALDI
When high-end retail and resi- Retired race
dential development picked up in car driver
nearby Miami Beach and surround-
ing areas in the late 1990s, the GOING UP A rendering of the Park Grove, a three-tower complex designed by Rem Koolhaas and his firm OMA. The first two towers
Grove was largely left out, said Pe- are mostly sold; the final, most expensive tower will have units ranging from a $4 million three-bedroom to an $8 million five-bedroom.
ter Zalewski, founder of condo-data
company Cranespotters. “The only
people you were left with were the
hippies,” says Mr. Zalewski, who
adds that top-flight buyers looked
to beachfront communities.
That began to change in 2013 BERNARDO
when sales started at the Grove at FORT-BRESCIA
Grand Bay, two towers designed by Architect
Bjarke Ingels, who is now designing and co-founder,
New York’s Two World Trade Cen- Arquitectonica
ter. Prices ranged from about $3
million to $9 million, with a roughly
14,000-square-foot penthouse ask-
ing $28 million. It was the first new
high-end condo project to hit the
Grove since about 2006 and all 98
units have sold, according to David
Martin, the president of the devel-
oper, Terra Group. The towers will
be finished in roughly eight months. CARLOS
ALEXIA FODERE FOR THE WALL STREET JOURNAL (9)
Now Terra Group, along with MIGOYA

Related Group, is building Park CEO, Jackson
Grove, the nearby three-tower Health System
complex designed by architect
Rem Koolhaas and his firm OMA.
The first two towers will be com-
pleted around winter 2017, but 95%
of the units, priced from $600,000
to $5 million, have sold, said Pi-
etro Belmonte of Douglas Elliman.
The final and most expensive
tower, slated for completion in
2018, will have 54 units ranging JONATHAN
from a $4 million three-bedroom TEAR DOWN? Sandy Dufay’s waterfront home, which is for sale—a home on a similar lot down the block was demolished to create a LEWIS
to an $8 million apartment with large spec house. Clockwise from top left: the family room, living room, make-up room, pool, faux-painted ceilings and walls. Investor
five bedrooms, 6½ baths and a
wraparound balcony. That trans- along with a collection of Grand would probably go to South 12,000-square-foot home in the the surge of demolitions. She re-
lates to more than $1,900 a square Prix race cars, from nearby Key Bis- Beach,” he says. “But Coconut Grove for $13.4 million, according to cently campaigned to prevent a
foot for some units. Related’s Mr. cayne. He says he bought a 3,000- Grove has a maturity to it that is public records—one of the most ex- developer from leveling a historic
Pérez says he will personally cu- square-foot unit for $4.5 million at [both] calm and exciting.” He pensive home sales in the village. Mediterranean home. According to
rate a multimillion-dollar collec- the new tower for the same reason plans to move from his current Nelson Gonzalez of EWM Realtors the zoning department, there were
tion of contemporary art pieces many locals will: top-rated schools residence in nearby Coral Gables. is listing La Brisa, the 6.9-acre estate about 45 requests for residential
and installations for Park Grove, like Ransom Everglades, where tu- The housing market has risen with a circa 1920 mansion and over demolition in 2014, and most were
including sculptures from Jaume ition costs $34,550 a year. rapidly in the past few years, says 200 feet of bay frontage. The only approved. In 2015, there were 70.
Plensa and Richard Serra. Mr. Fernandez, 63, says he Michael Light of Miami Luxury interest so far has come from devel- Mr. Fort-Brescia has a few
Buyers include Mr. Fernandez, bought a two-story, 5,000-square- Homes. For publicly listed condos opers looking to bulldoze and subdi- words of advice for newcomers
founder of MBF Healthcare Part- foot apartment with a private and homes, the median sales price vide the land, Mr. Gonzalez says. looking to change the village. “You
ners, and Brazilian race car driver pool, as well as a two-bedroom in the Grove was $675,000 in 2015, “Sometimes they go down so can’t let success take it over, be-
Emerson Fittipaldi. Mr. Fittipaldi, unit for his daughter, for a total of up 17.5% from 2014. Last year, NBA fast, I forget what was there” said cause before you know it, we’re
68, says he is moving his family, roughly $10 million. “If I was 17, I star LeBron James sold his roughly historian Arva Moore Parks about just like everybody else.”

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